About SolexCompany Pro?leBusiness OperationsIndustry LayoutBrand DevelopmentMilestones in ????Major Honors in ????

????????

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ResponsibilityFocus-Special TopicsDeepening the Robotics Sector andConsolidating Industrial LayoutStrengthening Industry Engage-ment and Showcasing at Profes-sional Exhibitions

??

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Sustainable DevelopmentGovernanceESG Management FrameworkInformation Reporting MechanismESG GoalsDue DiligenceESG Risk ManagementMateriality AssessmentCommunications with Stakeholders

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??

Building a Solid GovernanceFoundation with Integrityand DiligenceCorporate GovernanceCompliance Operationand Risk ManagementInvestor Relations Managementand Shareholders’ Rightsand InterestsBusiness Ethics

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Nurturing the Ecosystemand Advancing SustainablyThrough Green DevelopmentResponse to Climate ChangeEnvironmental ComplianceManagementResource UtilizationPollutant EmissionsImplementation of Green OperationProtection of Ecosystemand Biodiversity

Empowering Industryand Creating Enduring ValueInnovation-drivenProduct and Service Safetyand QualityInformation Securityand Privacy ProtectionSupplier Management

Attracting Talentand Building UnityProtection of Employees’ Rightsand InterestsOccupational Health and Safety

Social WelfareRural Revitalization

????

Bene?ting the Peopleand Ful?lling Responsibilitieswith Kindness

IntroductionReporting ScopeReporting PeriodPreparation BasisData ExplanationDe?nitionCon?rmation and ApprovalAccess to this Report

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About This Report?

Message from the Chairman?

Future Outlook??

Key PerformanceIndexesAssurance ReportFeedback

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Annex??

Sustainable DevelopmentHighlights in ????

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??

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??????

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About This Report

Introduction

This is the ?th Environmental, Social and Governance Report("ESG Report") publicly released by Xiamen Solex High-techIndustries Co., Ltd. It objectively discloses to stakeholders suchas shareholders, employees, governments, clients, andconsumers the e?orts and achievements made by Solex inaspects such as safety production, environmental protection,social welfare, corporate governance, and talent development.

Reporting ScopeThis report covers Xiamen Solex High-tech Industries Co., Ltd.,including its subsidiaries. Unless otherwise speci?ed, the scopeof this report is consistent with that of the Company's annualreport.Reporting PeriodThis report covers the period from January ?, ???? to Decem-ber ??, ???? (the "Reporting Period"). To improve the compara-bility and completeness, some sections of this report may beappropriately referred to previous years or containsforward-looking statements. This report is released on anannual basis, consistent with the ?nancial year.Data Explanation

Data sources used in this report include the Company’s actualoperational data, publicly available data from governmentagencies, annual ?nancial data, internal statistical reports,third-party questionnaire surveys, etc. The ?nancial data in thisreport is expressed in RMB. For any discrepancy between thisreport and the ?nancial statements, the ?nancial statementsshall prevail.

Con?rmation and ApprovalThis report was approved by the Company’s Board of Directors on March??, ????, and was subsequently released in conjunction with the AnnualReport. The Board pledges to exercise oversight over the contents of thisreport, ensuring its absence of any false records or misleading representa-tions, and assuming responsibility for its truthfulness, accuracy andcompleteness.

Access to this ReportYou may access and download the electronic version of this report at thewebsites of Xiamen Solex High-tech Industries Co., Ltd. (www.solex.cn),Shanghai Stock Exchange (www.sse.com.cn) or cninfo (www.cnin-fo.com.cn) to learn more information about the Company.

Preparation Basis·Shanghai Stock Exchange Self-Regulatory Guidelines for Listed

Companies No. ?? - Sustainability Report (for Trial

Implementation)·Shanghai Stock Exchange Self-Regulatory Guidelines for Listed

Companies No. ? - Preparation of Sustainability Report

(Revised in January ????)·China Enterprise Reform and Development Society Guidelines

for Sustainable Development Reports of Chinese Enterprises

(CASS-ESG ?.?)·Sustainable Development Goals (SDGs) of the United Nations·???? Sustainability Reporting Standards (GRI Standards) of the

Global Reporting Initiative (for reference)

Appellation DescriptionFor the ease of expression and readability, "Xiamen SolexHigh-tech Industries Co., Ltd." is referred to as "Solex," the"Company," or "we" in this report. Unless otherwise speci?ed,other designations are de?ned as follows:

Solex VietnamTermInterpretation

?Opening section

Zhangzhou Solex Smart Home Co., Ltd.Zhangzhou Solex Smart Home Co., Ltd.Xiamen Branch

Solex High-tech Industries(Vietnam) Co., Ltd.

Xiamen Solex Health Technology Co., Ltd.Xiamen Bestter Technology Co., Ltd.

ZhangzhouSolexSolex HealthBestter

Xiamen Vehicle Design & Services IntelligentMotion System Co., Ltd.VDS

SGS-CSTC Standards Technical ServicesCo., Ltd.SGS

Xiamen Solex Robotics Technology Co., Ltd.Solex RoboticsXiamen Huaying Industrial Co., Ltd.HuayingIndustrial

???? Environmental, Social, and Governance (ESG) Report

?

Dear shareholders, partners, employees, and colleagues from all sectors of society,As time advances, we remain steadfast and diligent. In ????, amid a complex and ever-changing globaleconomic landscape, sustainable development has become a vital pillar supporting enterprises inmaintaining resilient operations and navigating economic cycles. Amid green transformation andindustrial upgrading, the kitchen and bathroom home furnishings and health hardware industriescontinue to evolve toward greener, smarter, and more globalized development. Solex alwaysintegrates ESG principles throughout its strategy and operations, focusing on its two core businessesof robotics and IDM. Driven by technological innovation and global deployment, we balance economicreturns with social value and diligently respond to the trust and expectations of all stakeholders.Governance as the foundation ensures steady and sustainable operations. In ????, in alignment withregulatory requirements and operational realities, the Company optimized its governance structure byabolishing the Board of Supervisors, transferring its relevant functions to the Audit Committee underthe Board of Directors, and simultaneously revising the Articles of Association and the Rules ofProcedure of the Strategy and ESG Committee under the Board of Directors, thereby re?ning an ESGworking mechanism coordinated by the Board, guided by committees, and executed collaborativelyby all departments. The Company strictly ful?lls its information disclosure obligations, ensuring thatdisclosures are truthful, accurate, and complete, and safeguarding the legitimate rights and interestsof all shareholders. Through standardized governance practices, the Company's ESG performance hasbeen recognized by third-party professional institutions and has consistently maintained an A ratingamong mainstream ESG assessments.Advancing toward sustainability through green manufacturing and low-carbon development. TheCompany adheres to compliant, e?cient, and low-carbon production management principles,embedding green concepts across the entire value chain from R&D to production and supply chainmanagement. In ????, the Company and its subsidiary Zhangzhou Solex was certi?ed with ISO?????:???? Energy Management System, continuously enhancing energy management and resourceutilization e?ciency; the smooth construction and commissioning of the Vietnam overseasmanufacturing base have incorporated green manufacturing standards, ful?lling environmentalresponsibilities within the Company's global expansion. The Company continues to optimize the useof energy and water resources, strictly control pollutant emissions, and promote circular economyinitiatives and process upgrades. These e?orts contribute to achieving carbon peaking and carbonneutrality goals, as well as sustainable development.

Chairman of Xiamen Solex High-tech Industries Co., Ltd.

March ??, ????

Message from the Chairman

People-oriented, upholding product responsibility and shared value creation. The Companycontinuously improves its employee protection and career development systems, strengthensoccupational health and safety management, and fosters mutual growth between employees and theenterprise. At the product level, the Company focuses on innovation in intelligent, health-oriented,and green products to drive iterative upgrades of electronic shower systems, smart toilets, AI beautydevices, beverage health, and intelligent monitoring equipment. In ????, the Company obtained theMDSAP certi?cate, which indicates that its product-related manufacturing systems within the de?nedscope comply with regulatory requirements in the United States, Japan, Brazil, Australia, and Canada.Together with ISO ?????, ISO/IEC ?????, and ISO/IEC ????? certi?cations, the Company hasestablished comprehensive safeguards covering quality, compliance, and data security across theentire process. The Company promotes and disseminates ESG principles among supply chainpartners, steadily advancing the development of a responsible supply chain.Pressing forward without falter, the future holds promise. The Company's ESG practices in ????provided a solid foundation for risk resilience and steady growth, made possible by the dedication ofall employees and the support of stakeholders. As ESG has become a core requirement for high-qualitydevelopment, the Company will continue to be driven by R&D innovation, with domestic operations asits core base, while steadily advancing overseas manufacturing and globally compliant operations.Looking ahead, the Company will further enhance its ESG management system, focusing onenvironmental performance improvement, technological innovation, global compliance, and supplychain collaboration, increasing investment in green and intelligent technologies to achievecoordinated economic, environmental, and social bene?ts.At this new starting point, Solex will remain committed to its industrial roots, strengthen its corecompetencies in innovation, design, and intelligent manufacturing, and advance sustainabledevelopment with a long-term perspective. The Company will continue to enhance its corecompetitiveness, expand into global markets, deliver stable returns to shareholders, provide growthplatforms for employees, create long-term value for society, and join hands with all stakeholders tobuild a green and inclusive industrial future.We sincerely thank friends from all sectors for your enduring trust, support, and partnership.

???? Environmental, Social, and Governance (ESG) Report

Opening section

Sustainable Development Highlights in ????

Total Assets:

???，???.?? (in RMB ??,???);Operating Income: ???，???.?? (in RMB ??,???);Total Pro?t: ??，???.??(in RMB ??,???);Total Tax Payment: ?，???.?? (in RMB ??,???);Basic Earnings per Share: RMB ?.?? per share;Net Pro?t Attributable to Shareholders of the Listed Company: ??，???.?? (in RMB ??,???).

PV Generation:

?,???,???.?? kWh;

Greenhouse Gas Emission Intensity: ?.?? tCO?e/RMB ??,??? revenue;Total Water Consumption: ???,??? tons;Water Consumption Intensity: ?.?? tons/RMB ??,??? revenue;Total Energy Consumption: ??,???.?? tce;Energy Consumption Intensity: ?.?? tce/RMB ??,??? revenue.

Total number of employees:

?,???； Employee Satisfaction: ??.??%；

Investment in R&D: ??,???.?? (in RMB ??,???); Product Percent of Pass: ??.??%；Total Investment in Data Security:??? (in RMB ??,???)；Total Investment in Safety Production: ???.?? (in RMB ??,???);Total Public Welfare Input: ?.?? (in RMB ??,???).

General Meeting of Shareholders Convened:

? times;Meetings of the Board of Directors Convened: ?? times;Percentage of Female Directors in the Board of Directors: ??.??%；Percentage of Independent Directors in the Board of Directors: ??.??%；Reply rate to investors' inquiries at SSE E-Interactive Platform: ???%.

Environmental Performance

Economic PerformanceGovernance Performance

?

(For detailed information on the Company's economic performance, please refer to Solex's ???? Annual Report.)

???? Environmental, Social, and Governance (ESG) Report

Opening section

Social Performance

???? Environmental, Social, and Governance (ESG) Report

About Solex

The robotics business is a strategic business line of theCompany. Under its proprietary brand "Solex Robotics," itexpands domestic and overseas markets and builds twocore collaborative organizational systems: A logisticsservice robot system tailored for industrial parks, medicaland elderly care institutions, and other scenarios, whichprovides integrated solutions such as inspection andsecurity, in-park logistics, cleaning, and reception; and amedical and elderly care service robot system focused onhealthcare, elderly care, and aesthetic medical institu-tions, which o?ers personalized solutions includingmobility assistance, nursing and rehabilitation, and healthmonitoring.

The Company's IDM business, based on the IDM (Innova-tion, Design, Manufacturing) model, primarily servesoverseas markets and leading international brandcustomers, and is divided into two major segments: Thehealthcare software and hardware, as the second growthengine, focuses on diversi?ed scenarios including sleep(e.g., AI smart pillows, smart mattresses), skin and hair(e.g., AI beauty devices, hair removal devices, hair growthdevices), oral care (e.g., AI health-monitoring oralirrigators, electric toothbrushes), sports rehabilitation andbody shaping (e.g., intimate care devices), AI companion-ship (e.g., AI companion cats), and beverage health (e.g.,soda makers); intelligent kitchen and bathroom solutionsconstitute the Company's foundational business, withcore categories including shower systems, kitchen faucets,smart toilets, and intelligent beverage systems, consoli-dating the Company's business fundamentals.

The Company is among the few domestic enterprises tohave received all eight "national-level" honors: "High-techEnterprise", "National Intellectual Property DemonstrationEnterprise", "National Enterprise Technology Center","Service-Oriented Manufacturing DemonstrationEnterprise", "National Green Factory", "National IndustrialDesign Center", "Postdoctoral Research Station", "SolexFamous Trademark". In addition, the innovative productsdesigned by the Company's design team have won over??? domestic and international design awards, includingtop global industrial design awards such as the Red DotAward (Germany), iF Design Award (Germany), IDEA Award(United States), and Good Design Award (Japan). To date,the Company holds more than ?,??? valid authorizedpatents domestically and internationally, including over??? invention patents and nearly ??? utility model patents,demonstrating its outstanding strength in innovation.

Xiamen Solex (??????.SH) was established in ????. TheCompany's businesses cover branded organizationalsystems for service robots and consumer intelligenthardware IDM operations, aiming to provide innovativesolutions to global customers.

?About Solex

Company Pro?le

???? Environmental, Social, and Governance (ESG) Report?About Solex

To create maximumvalue in product R&D,design, and manufactur-ing for leading globalbrand customers.

Advocating science andmutual support.The preferred IDMpartner for leading globalbrand customers.Solex IDM Division

VisionMission

We strive to fully liberateglobal enterprise clientsfrom service-orientedtasks in logistics,customer service,medical care, and healthand wellness.

Advocating science andmutual support.We are committed tobecoming a globallyleading B?B servicerobot organizationalsystem brand.Solex Robotics Division

Xiamen Solex High-tech Industries Co., Ltd.

Xiamen Solex Robotics Technology Co., Ltd.Xiamen Solex Health Technology Co., Ltd.Xiamen Bestter Technology Co., Ltd.

Zhangzhou Solex Smart Home Co., Ltd.

Solex (Hong Kong) Co., Ltd.

Solex High-tech Industries (Vietnam) Co., Ltd.

?Xiamen Vehicle Design & Services Intelligent Motion System Co., Ltd.

?Minke (Xiamen) Industrial Research Institute Co., Ltd.?Beijing Xiaojingxi Technology Co., Ltd.?Fujian Beilang Jiayuan Smart Home Co., Ltd.?Xiamen Huaying Industrial Co., Ltd.?Zhangzhou Solex Smart Home Co., Ltd. Xiamen Branch

?SOLEX ITALY SPA

Shareholding Structure Chart

Cultural Values

VisionMissionCultural Values

Corporate Culture

???? Environmental, Social, and Governance (ESG) Report

Continuously iterating core technologies such as intelligent watersaving, precise temperature control, and intelligent sensing, andempowering products including faucets, shower systems, and smarttoilets with patented technologies such as bubble concentrationdetection, negative pressure water shut-o?, and multi-sensorlinkage, optimizing water-saving e?ciency and user experience,expanding intelligent and health-oriented kitchen and bathroomsolutions, and meeting the needs of high-end overseas brands.The Vietnam base has commenced operations to undertake overseasorders, mitigated tari? barriers and ensured global supply chainstability; deepened IDM cooperation, focused on internationalhigh-end customers, and consolidated its position as a core supplier.

Intelligent Kitchen and Bathroom

「Foundational business, steadily upgrading」

「Product」

「Latest Developments」

Focusing on scenarios such as sleep, skin, hair, oral care, sportsrehabilitation and body shaping, AI companionship, and beveragehealth, leveraging core patents in AI recognition, precise regulation,and intelligent monitoring to complete full-category productiterations and functional upgrades for smart anti-snoring pillows,pelvic ?oor rehabilitation devices, portable hair removal devices,and more.Certi?ed with ISO/IEC ????? and ????? information security,obtained MDSAP international medical device quality systemcerti?cation across ?ve countries, and advanced the expansion ofISO ????? medical device quality management system certi?cationat the Vietnam park, jointly initiated the Xiamen "Open Competitionfor the Best" smart health home application large model project withuniversities; the Company continues to cultivate overseas high-endB-end markets through patent-driven technology, scenario-basedproducts, and ecosystem collaboration, strengthening globalcompliance capabilities and core competitiveness.

Healthcare Software and Hardware

「Second growth engine, technological breakthroughs」「Product」

「Latest Developments」

The organizational system for logistics service robots and the organi-zational system for medical and elderly care service robots.In February ????, the Company established its wholly ownedsubsidiary Solex Robotics; in March ????, Solex Robotics acquiredXiamen VDS, rapidly strengthening capabilities in mobile chassisand motion control teams; in November ????, Solex Health Park waso?cially renamed Solex Robotics Park, establishing an integratedrobotics base that includes R&D buildings, exhibition halls, testingfacilities, and planned production areas; in November ????, theSolex Robotics Research Institute was o?cially inaugurated; inDecember ????, Version ?.? of the Solex Robotics showroom o?cial-ly opened.

Robot Organizational System

「Strategic new core, inaugural year ????」「Product」「Latest Developments」

About Solex?

Business Operations

???? Environmental, Social, and Governance (ESG) Report

Global Market Layout

Domestic Production Capacity Layout

Deploying in the robotics ?eld, expandingbusiness end scenarios such as rehabilitationand elderly care institutions and industrialparks, with robotics business orders expectedto be converted and implemented.

Xiamen Park + Zhangzhou Smart Home Park,focusing on R&D and high-end manufacturing.

Overseas Market Layout

Overseas Production Capacity Layout

Covering ??+ countries/regions, with theVietnam base commencing production in ????,focusing on manufacturing to address tradebarriers.

Vietnam Solex production base, dedicated tolarge-scale manufacturing to support interna-tional business expansion.

"Solex Robotics" is the core brand of the Company's strategic business line, deliveringprofessional service robot collaborative organizational systems to domestic andoverseas enterprise clients. Leveraging manufacturing strength, accumulated AIalgorithms, and global production capacity layout, the brand builds competitiveadvantages through di?erentiated strategies. Focusing on the two core scenarios oflogistics services and medical and elderly care services, the brand has developedproduct series covering diversi?ed functional modules: For logistics service scenarios,targeting industrial parks, medical and elderly care institutions, and various enterpris-es, it provides automated solutions such as inspection and security, in-park logistics,indoor and outdoor cleaning, and guided reception; for medical and elderly carescenarios, focusing on healthcare institutions, aesthetic medical institutions, andbeauty institutions, it o?ers intelligent services including mobility assistance, nursingand rehabilitation, and health monitoring, helping global clients achieve scenarioupgrades and e?ciency improvements.

Building the "Solex Robotics" Brand

Building upon its solid foundation in "Health Hardware IDM," Solex is driving a pivotalleap in its brand strategy, entering a new era of proprietary robotics branding. Poweredby technological innovation, the Company deeply integrates its core manufacturingcapabilities with cutting-edge technologies such as intelligent sensing and mechatron-ics, actively positions itself within the robotics industry ecosystem, and advances froma product manufacturer to a leader in intelligent solutions, elevating brand value andopening a new chapter in empowering global households and industries with intelli-gent upgrades.

Brand DevelopmentIndustry Layout

?About Solex

???? Environmental, Social, and Governance (ESG) Report??About Solex

Milestones in ????

January

The Solex ???? StrategicManagement Summit discussedthe Company's overall strategy,the strategic positioning anddevelopment plan of SolexVietnam, outlining a clearblueprint for its future.

February

Solex Robotics was established,as a step to deploy the strategicbusiness line of robotics. Underits proprietary brand, it targetsboth domestic and overseasToB markets, building twocollaborative organizationalsystems for logistics andmedical/elderly care servicerobots.

March

Solex Robotics completed theacquisition of VDS.

December

The Solex Roboticsshowroom o?ciallyopened.

Solex initiated the"Open Competitionfor the Best" projectto tackle key technol-ogies for a smarthealth applicationlarge model.

November

The Solex Robotics ResearchInstitute was o?cially inaugu-rated.

AprilSolex's Aurora photocatalysttoothbrush and Nimbleside-spray lifting bar won the???? German iF DesignAward.

JulySolex received the China PatentExcellence Award for its patent"A Multifunctional Shower-head."

May

Solex participated in the ??thKitchen & Bath China in Shang-hai.

Solex participated in the ??thChina Beauty Expo in Shanghai.

June

Solex was honored as a"Benchmark Enterprise forFair Competition Compli-ance Management SystemDevelopment" and receivedthe nation's ?rst Fair Compe-tition Compliance Manage-ment System Certi?cation.

SGS awarded ISO/IEC ?????Information Security Manage-ment System Certi?cation andISO/IEC ????? Privacy Informa-tion Management SystemCerti?cation.

The Vietnam production basesuccessfully achieved its ?rstshipment.

Zhangzhou Solex was awardedthe provincial title of "GreenSupply Chain ManagementEnterprise."

October

A celebratory event for theVietnam production base washeld in Quang Ninh Province,Vietnam.

September

Solex received the "???? BestPractice Case of InternalControl of Listed Companies"from the China Association forPublic Companies.

Solex participated in Cosmo-prof Asia in Hong Kong.

???? Environmental, Social, and Governance (ESG) ReportAbout Solex??

????年度厦门市重点工业企业名单RecipientAwardsAwarding Authority

National Enterprise Technology Center

National Development and Reform Commission, Ministry of Finance,General Administration of Customs,Ministry of Science and Technology,State Taxation AdministrationSolex

???? Key Industrial Enterprise of XiamenXiamen Municipal Bureau of Industry and Information TechnologySolex

???? Key Industrial Enterprise of XiamenXiamen Municipal Bureau of Industry and Information TechnologyBestter

???? Top ??? Strategic Emerging IndustryEnterprises in Fujian (Ranked ??st)

Provincial Enterprise Confederation, Provincial Radio and Television,Provincial Academy of Social Sciences, Fujian Daily, etc.Solex

Top ??? Private ManufacturingEnterprises in Fujian Province (Ranked ??rd)

Fujian Federation of Commerce & IndustrySolexSolex

Top ??? Innovative Private Enterprises inFujian (Ranked ??th)

Fujian Federation of Commerce & IndustrySolex???? Top ??? Xiamen Enterprises (Ranked ??nd)Xiamen Enterprise Confederation, Xiamen Radio and Television, Xiamen Daily, etc.

Solex???? Top ?? Xiamen Green Enterprises (Ranked ??th)Xiamen Enterprise Confederation, Xiamen Radio and Television, Xiamen Daily, etc.Solex

???? Top ?? Xiamen Enterprises inIntellectual Property (Ranked ?th)

Xiamen Enterprise Confederation, Xiamen Radio and Television, Xiamen Daily, etc.Solex

Top ?? Xiamen Private Technology InnovationEnterprises (Ranked ??th)

Xiamen Federation of Industry and Commerce

Solex

Top ?? Xiamen Private Manufacturing Enterprises(Ranked ??st)

Xiamen Federation of Industry and Commerce

SolexTop ??? Xiamen Private Enterprises (Ranked ??th)Xiamen Federation of Industry and Commerce

???? Haicang District Talent Attraction andCultivation Contribution Award

Leading Group for Talent Work of the CPC Haicang District Committee

Solex

???? Fujian Provincial Green Supply ChainManagement Enterprise

Fujian Provincial Department of Industry and Information Technology

ZhangzhouSolex

"Future Unicorn" Innovative EnterpriseFujian Provincial Bureau of Data Management

ZhangzhouSolex

Fujian Provincial Enterprise Technology Center

Fujian Provincial Department of Industry and Information Technology

ZhangzhouSolex

High-tech Enterprise

Xiamen Municipal Bureau of Science and Technology,

Xiamen Municipal Bureau of Finance, Xiamen Taxation Service of the

State Taxation AdministrationBestter

Major Honors in ????

Responsibility Focus-Special Topics

Deepening Industry Focus and Strengthening Strategic Layout,Integrating into the Industry for Shared Development

The Company has keenly seized development opportunities in the robotics sector, steadi-ly advancing industrial layout, leveraging enterprise?university?research institute collab-oration as a technological bridge to promote technological innovation and knowledgeintegration. At the same time, through deep participation in industry exhibitions andtechnical exchanges, the Company continues to expand brand in?uence and actively builda collaborative and mutually bene?cial industrial ecosystem.

Case Study: Taikang Community and Wuxin Elderly Care Visit SolexIn August ????, the chairman of Wuxin Elderly Care and the general manager of theOperations Support Department of Taikang Community led delegations to Solex forinspection and exchange. During the visit, the parties conducted in-depth discus-sions on the practical deployment of elderly-care robotics, with the Company engag-ing in dedicated and detailed consultations on robotic solutions tailored to TaikangCommunity's operational scenarios and needs. This exchange laid a solid foundationfor synergistic cooperation between the parties in the ?eld of elderly-care robotics.Solex's robust capabilities in AI and robotics precisely complement Taikang Commu-nity's nationwide healthcare and elderly-care community network and Wuxin ElderlyCare's experience in operating elderly-care institutions. This engagement not onlyachieved precise alignment between technological supply and scenario demand butalso marked the further implementation of an integrated model of "technology

Case Study: Strategic Cooperation Reached with Wuxin Elderly Care and Huaqiao University College of EngineeringIn August ????, Solex Robotics entered into a strategic cooperation memorandum withFujian Wuxin Elderly Care Services Co., Ltd. ("Wuxin Elderly Care") and the College ofEngineering of Huaqiao University ("HQU Engineering"). The three parties will focus onthe speci?c needs of elderly-care scenarios, integrating Solex Robotics' R&D andmanufacturing strengths, Wuxin Elderly Care's application scenarios and serviceexperience, and HQU Engineering's research capabilities and talent resources to jointlyexplore elderly-care robotics solutions and conduct collaborative R&D, design optimi-zation, and supply chain development. Going forward, all parties will continue toadvance project innovation and iteration, deepen collaboration in policy initiatives andresearch project applications, and actively explore long-term development opportuni-ties in the elderly-care robotics ?eld.

Deepening the Robotics Sector andConsolidating Industrial LayoutThe global technology industry is ?ourishing, with new technologies andapplication scenarios continuously emerging, bringing new opportunitiesfor enterprise development. As an innovation-driven enterprise, Solex has?rmly seized industry opportunities, actively deployed in the ?eld ofarti?cial intelligence, established a professional AI algorithm team, andattached great importance to the development of the robotics industry. TheCompany relies on its subsidiary Solex Robotics to pioneer new businesstracks and is actively building integrated industrial chain service capabilitiesencompassing robotics technology research and development, manufactur-ing, and market sales, steadily deepening its strategic layout in the roboticssector.At present, the Company is prioritizing the R&D of collaborative organiza-tional systems for healthcare and elderly-care service robots as well aslogistics service robots, continuously advancing the deployment of roboticteams that address customer pain points and consolidating its core techno-logical competitiveness. During the Reporting Period, Solex Roboticssuccessfully completed the acquisition of VDS and ?nalized all requisiteindustrial and commercial registration changes.

??Responsibility Focus-Special Topics???? Environmental, Social, and Governance (ESG) Report

R&D—industrial deployment—serviceoperations" in the elderly-care sector,injecting strong momentum into thecommercialization　of　elderly-carerobotics in China.

Strengthening Industry Engagement and Showcasing at Professional ExhibitionsUpholding the core philosophy of model sharing, manufacturing sharing, and technology sharing, Solex's IDM business focuses on the ?elds of healthcare software and hardware and intelligent kitchen and bathroomsolutions. With enterprise?university?research institute collaborative innovation as the central engine, we have established joint R&D platforms with leading domestic universities and top-tier hospitals to overcomekey technical challenges and accelerate the commercialization of research outcomes. At the same time, we concentrate on the R&D, design, and manufacturing of intelligent products and, leveraging platforms suchas beauty expos and kitchen and bathroom exhibitions, collaborate closely with industry partners to integrate hardware innovation with health insights, delivering safer, more convenient, and smarter healthy livingexperiences for consumers.

??

Case Study: Gathering New Kitchen andBathroom Trends in ShanghaiFrom May ?? to ??, ????, the ??th Kitchen & Bath China washeld at the Shanghai New International Expo Centre. Underthe theme "New Era, New Kitchen and Bathroom, NewExperience," the exhibition brought together cutting-edgeindustry trends and innovative products. Guided by thephilosophy of "intelligence, health, and sustainability," theCompany focused on real-life scenarios such as beveragehealth, intelligent bathroom solutions, and kitchen waterusage, presenting four themed exhibition zones: beveragespace, smart toilet space, shower space, and faucet space.In addition, the robot Xiaolin made its debut, interactedwith visitors on-site and guided them to explore technologi-cal highlights and product experiences throughout theexhibition areas.

Case Study: With Dedicated Craftsmanship in Beauty Tech, Solid Capabilities Shine in Asia-Paci?cFrom November ?? to ??, ????, the Cosmoprof Asia was successfully held in Hong Kong, where the Company showcased a range of cutting-edge beauty and healthproducts in skin management and hair management, comprehensively presenting its latest R&D achievements. Meanwhile, the Company has actively establishedin-depth partnerships with renowned domestic universities and top-tier hospitals, integrating the strengths of enterprises, universities, and research institutes, andmedical institutions to jointly tackle key technologies for innovative products and explore new development opportunities in the beauty and health sector.Skin Management Products·The ?agship beauty device features intelligent emulsion detection, enabling adaptive compatibility with emulsions ofvarying viscosities and recommending personalized usage plans based on skin analysis results, thereby enhancingskincare precision and user experience.·The LED light therapy device incorporates a breathable structure and multiple phototherapy modes to address anti-ag-ing needs across di?erent skin types; equipped with intelligent distance measurement, it monitors user distance in realtime to ensure safe and controllable phototherapy, delivering a professional-grade at-home beauty experience.Hair Management Products·The hair removal device innovatively integrates AI detection algorithms to accurately identify hair distribution and scarlocations within the treatment area, e?ectively preventing scorching caused by residual hair while avoiding secondarydamage to scarred skin, thereby enhancing safety and comfort.·The hair-dryer brush integrates e?cient drying, care, and styling functions; its self-cleaning system e?ectively preventsdust blockage to ensure long-term stable operation, while water-ion technology helps improve dry hair quality, achiev-ing dual moisturizing and hair-care bene?ts. Combined with rapid styling functionality, it enables users to e?ortlesslycreate ideal hairstyles.

Responsibility Focus-Special Topics???? Environmental, Social, and Governance (ESG) Report

??

ESG Management Framework

Sustainable Development Governance

Board of Directors

Strategy and ESGCommittee

ESG WorkingGroup

·Review and approve the Company's major ESG matters, including material issues, management structure, and manage-

ment systems;·Review the Company's ESG report.·Research the Company's ESG goals, strategic planning, governance structure, and management systems, and makerecommendations to the Board of Directors;·Identify ESG risks and opportunities that have a signi?cant impact on the Company's business and guide management intaking responsive actions;·Supervise the establishment of ESG goals, corresponding implementation plans, and performance, review the progresstowards achieving ESG goals, and propose improvements;·Review the Company's ESG-related disclosure documents and submit them to the Board of Directors for deliberation.·Implement the Company's ESG strategy and goals, coordinate various departments in implementing ESG initiatives;·Draft ESG policies, issues, plans, and implementation schemes;·Collect ESG information and prepares reports and related documents;·Liaise with consulting and rating agencies, organize ESG business training, and monitor ESG policy developments;·Summarize ESG work results, report progress to the committee in a timely manner, and propose improvement suggestions.

To enhance employees' and management's in-depthunderstanding of sustainable development concepts andstrengthen ESG management capabilities, the Companyorganized a dedicated ESG training session on December??, ????, which was attended by ?? participants andlasted two hours. The training focused on interpreting thelatest ESG policy developments, frontier trends, andrating systems, and analyzed the Company's current ESGperformance and improvement pathways, furtherstrengthening ESG awareness and practical applicationamong key personnel and e?ectively enhancing the Com-pany's ESG management level.

Case Study: ESG Training

Sustainable Development Governance

The Company has formulated the Environmental, Social, and Governance (ESG) Management System and the Rules of Procedureof the Strategy and ESG Committee under the Board of Directors, and established a three-tier management structure comprisingBoard oversight, committee review, and working group execution to provide uni?ed leadership, decision-making, and imple-mentation of ESG-related work. Meanwhile, the Company continues to deepen ESG cultural development and empower allemployees, fully integrating ESG principles into operational practices, systematically enhancing environmental performance,ful?lling social responsibilities, and optimizing corporate governance.To ensure e?ective implementation of ESG governance, the Company has incorporated ESG-related indicators into key perfor-mance metrics and linked them to remuneration assessments for relevant positions, covering dimensions such as innovationand R&D, product quality, environmental protection, and workplace safety, thereby reinforcing ESG accountability and support-ing long-term sustainable value creation.

???? Environmental, Social, and Governance (ESG) Report

Information Reporting Mechanism

By regularly publishing ESG reports, Solex proactively discloses its performance across environmental, social, and governance dimensions, e?ectively enhancing investor communication quality andinformation transparency. Meanwhile, the Company clearly requires each executing unit to assume primary responsibility within its scope of duties, implement the daily management of ESG-relatedtasks according to the Company's ESG strategy and goals, regularly report progress, and promptly submit ESG information.

Building a Solid Governance Foundation with Integrityand Diligence

?Improvement of ESG governance system?Enhancing governance levels of the General Meeting ofShareholders, Board of Directors, and Board of Supervi-sors?Reinforcing risk control capabilities?Ensuring timely, accurate, and complete information

disclosure while maintaining strong investor relations?Zero incidents of commercial bribery, corruption, orunfair competition

?Increasing investment in R&D?Zero supply chain safety incidents?Compliance of products and serviceswith national standards?Rising customer satisfaction?Zero data leakage incidents

Empowering Industryand Creating Enduring ValueNurturing the Ecosystemand Advancing SustainablyThrough Green Development

?Zero employment discrimination incidents?Protecting employees' development andparticipation rights?Providing expansive development opportu-nities for employees?Strict occupational health and safety

management to foster a safe workplace

Attracting Talentand Building Unity

?Supporting carbon reductioninitiatives?Active promotion of green o?ce

practices?Improvement of resource utiliza-

tion e?ciency?Enhancing circular economy

practices and reducing unneces-

sary costs

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ESG Goals

Solex practices sustainable development through concrete actions, establishing clear ESG goals to anchor its direction and guide the orderly advancement of ESG initiatives. The Company also fullyendorses and actively implements the United Nations Sustainable Development Goals (SDGs), integrating them into its strategic planning to vigorously advance toward low-carbon manufacturing,shared bene?ts, and high-quality development.

ChaptersandSections

Our Goals

Sustainable Development Governance

???? Environmental, Social, and Governance (ESG) Report

??Sustainable Development Governance

???? Environmental, Social, and Governance (ESG) Report

The Company has established an employee mutual aid foundation to provide?nancial assistance to employees in di?culty; o?ers suitable employmentopportunities to economically disadvantaged laborers; and donates bicycles tochildren in impoverished counties.

Market demand guides the Company's R&D direction, with increased R&Dinvestment to continuously strengthen technological and product innovationcapabilities.

Adhering to core values of diversity, equality, and inclusion, the Companyensures no di?erential treatment based on gender, age, or other personalcharacteristics in recruitment, compensation, or career advancement.

The Company gives back to society through tangible actions by organizingcross-border donations and community elderly-care initiatives to supportsustainable community development.

The Company implements full lifecycle product management and strictlycontrols product quality through digital technologies.

Actively responding to the "dual carbon" strategy, the Company comprehensive-ly conducts greenhouse gas inventories, vigorously promotes energy-savingawareness and technology application, and contributes to carbon neutralitygoals.

The Company adheres to compliant operations, continuously improves compli-ance and risk management systems, and conducts regular information disclo-sure to ensure regulatory compliance and e?cient governance.

The Company continuously enhances its supplier management system bystandardizing the full-process management of supplier selection, evaluation,assessment, and exit, and incorporates ESG performance indicators into suppli-er admission criteria.

The Company cares for employees' physical and mental well-being by organiz-ing diverse cultural and sports activities. It also provides comprehensive healthcheck-ups for all employees and conducts regular safety hazard inspections.The Company has built a content-rich digital learning platform and establisheda tiered and categorized employee training system, empowering employeeswith personalized and autonomous learning opportunities.The Company e?ectively safeguards the legitimate rights and interests of femaleemployees, strictly ensuring gender equality in recruitment, compensation andbene?ts, and promotion, and fully implementing statutory leave entitlementssuch as maternity examination leave in accordance with the law.The Company rigorously manages wastewater discharge, conducts real-timemonitoring across all treatment stages, and enhances water utilization e?cien-cy through wastewater recycling and reuse measures.The Company actively promotes the application of photovoltaic technology,continuously increasing the proportion of clean energy usage, while reducingenergy waste through equipment upgrades and energy-saving awarenesscampaigns, thereby advancing green operations.The Company provides employees with market-competitive compensation anddiverse bene?ts, and through regular performance evaluations fully unlocksemployees' capabilities and potential.

The Company addresses the dietary health needs of the elderly by donatingpeanut oil and other supplies to community seniors.

Our Actions

??Due DiligenceConducting due diligence is of great signi?cance for identify-ing, preventing, mitigating, and addressing the Company'sactual and potential adverse impacts and risks. In accordancewith regulatory requirements and industry norms, the Com-pany has established and re?ned a due diligence mechanism,fully integrating it into its enterprise risk management systemand proactively identifying sustainability-related risk expo-sures.

ESG Risk ManagementThe Company places high emphasis on ESG risk management. Focusing on key ESG topics such as climate change response, inno-vation-driven development, product safety and quality, responsible supply chains, and energy utilization, the Company organizestop-down risk identi?cation and assessment across departments and formulates scienti?c mitigation measures based on assess-ment outcomes to ensure e?ective ESG risk oversight and support stable and sustainable development.

Background investigations are conducted for newhires, promotions or transfers to core and sensitivepositions, and promotions of core managementpersonnel; core and sensitive positions are deter-mined in accordance with compliance policies, andinvestigations are completed prior to hiring orappointment notices to ensure compliance andmitigate employment risks.

Prior to cooperation, the Company veri?es theircredit standing and contract performance capabili-ty, streamlines key due diligence content, classi?esrisk levels based on ?ndings, and implements di?er-entiated risk controls.

Employees

BusinessPartners

Material TopicsRisk Description

Retention risks due to high turnover and challenges in retaining talent; skill risks arising from lagging employee skill updatesthat fail to match technological upgrades; and cross-cultural management risks stemming from ine?ective collaborationwithin multicultural teams and insu?cient management adaptability.

TalentManagement

Occupational health and safety entail legal compliance risks; inadequate safety management execution may lead to regulatorypenalties; exposure of safety incidents may cause reputational damage; and casualties may directly halt production, triggeringoperational disruptions and a?ecting normal business operations.

OccupationalHealthand Safety

Water resource utilization is under increased control pressure due to higher water supply volumes and policy risks arising fromadjustments to water abstraction and usage regulations; production processes may pose water pollution risks, and ine?cientwater use may cause resource waste and reputational harm.

Water ResourceUtilization

Energy price volatility, increasingly stringent regulatory oversight of high-energy-consuming processes, and low energye?ciency not only raise operating costs but also hinder compliance with policy requirements.EnergyUtilization

Supply chain policy adjustments may restrict trade and disrupt supply chains; rising material prices may increase procurementcosts; and unreasonable procurement planning may result in inventory shortages or backlogs.Supply ChainManagement

Product safety and quality are subject to multiple risks, as quality issues may trigger reputational damage; emerging businesssegments may lack maturity; intensi?ed market competition, imbalanced production capacity and inventory, and suboptimalchannel customer structures may constrain sustainable product development.

Product Safetyand Quality

Innovation-driven development faces talent attrition risks that may interrupt R&D projects or cause technology leakage, along-side insu?cient protection of core process patents that could erode competitive advantages.Innovation-driven

Frequent extreme weather events may increase operating costs; policy updates may raise compliance costs; green transitiondemands signi?cant capital investment; and failure to take e?ective response measures could result in reputational damageand revenue volatility.Response toClimate Change

Sustainable Development Governance

???? Environmental, Social, and Governance (ESG) Report

In accordance with the Shanghai Stock Exchange Self-Regulato Guidelines forListed Companies No. 14 - Sustainability Repo (for Trial Implementation), and inconsideration of industry dynamics and the Company's operational realities, theCompany conducted analyses from the perspectives of "impact materiality" and"?nancial materiality," identifying and evaluating ?? key issues of signi?cance tothe Company and its stakeholders, among which ?ve dual materiality issues areaddressed as focal points in this report.

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Assessment stepsAnalysis methodsUnderstandthe Company'sbackgroundand conductpreliminaryissue screeningStep ?

Assess themateriality ofissuesStep ?

Identify mate-rial issues

Step ?

·Based on analysis of industry development trendsand the Company's business model, refer to GRI,SASB, and related issues from domestic and interna-tional peers, establish a sustainable developmentissue library.·Identify the potential or actual impacts of each issue

on the external environment, society, and economy inthe form of questionnaires and expert judgments.·Identify issues with ?nancial materiality based on theCompany's risk identi?cation and assessment list andcombined with questionnaire results.·Form an issue list based on impact materiality and

?nancial materiality, and ensure that the relevantissues are transparently, fairly, and comprehensivelydisclosed in the report.

Matrix of Material Issues

Signi?cance in terms of economic, social,and environmental impactSigni?cance in terms of ?nancial impact on the company

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Environmental compliance managementenergy utilizationResponse to climate changecircular economywater resource utilizationpollutant emissionswaste disposalEcosystem and biodiversity protectionlow-carbon productsemployee rights protectionemployee training and developmentoccupational health and safetyinnovation-driventechnology ethicsproduct safety and quality

customer rights protectioninformation security and privacy protectionresponsible supply chainequal treatment of SMEssocial contributionrural revitalizationshareholder rights protectionstandardized corporate governanceanti-commercial bribery and anti-corruptionanti-unfair competitiontax compliancerisk managementdue diligencestakeholder communicationESG governance

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Dual materialityissuesImpact materialityissues

Relevantissues

Response to climatechange

innovation-driven

product safety and

quality

responsible supply chainenergy utilization

Ecosystemand biodiversity protection

due diligenceESG governancetechnology ethicsequal treatment of SMEssocial contributionrural revitalization

Environmental compliance

management

circular economywater resource utilizationpollutant emissionswaste disposallow-carbon products

employee rights

protection

employee trainingand development

occupational health

and safety

customer rights protectioninformation securityand privacy protection

shareholder rights

protection

standardized corporate

governance

anti-commercial bribery

and anti-corruption

anti-unfair competitiontax compliancerisk management

stakeholdercommunication

Materiality Assessment

Sustainable Development Governance???? Environmental, Social, and Governance (ESG) Report

To ensure smooth communication with stakeholders, the Company has established an ESG information communication mechanism and, in accordance with international standards such as the GRI Stan-dards and AA???? Stakeholder Engagement Standard, conducts stakeholder identi?cation and engagement. Where necessary, it actively solicits stakeholder feedback and recommendations throughinterviews, forums, and surveys to continuously improve performance.

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StakeholderCategoryDemands andExpectations

Communication andResponse

Government andregulatory agencies

Suppliersand Partners

Investors andShareholders

EmployeesCustomers

Public welfare andcommunity organizations?Compliant Operations?Environmentalprotection?Business ethics and

anti-corruption?Lawful tax payment

?Win-win cooperation?Promotion of industri-al development?Equal reciprocity?Supplier Management

?Improvement of

Corporate Governance?Return and growth?Timely informationdisclosure?Risk Management

?Employee Care?Diversi?ed training?Career Development and Promotion?Compensation and bene?ts?Health and Safety?Performance appraisals?Protection of Employees’ Rights andInterests

?Product Innovation?Fostering open communica-tion channels?Ensuring Product Quality?Protecting the rights andinterests of customers

?Employment Promotion?Public Welfare and Charity

?Comply with Laws andRegulations?Green Manufacturing?Supervision and

inspection?Full Tax Compliance

?Transparent procure-

ment?Industry cooperation

and exchange?Responsible industry

chain?Building of a green

supply chain

?Optimization of

governance structure?Shareholder dividends?Regular publicannouncements?Improvement ofInternal Control

?Diverse cultural and sports activities?Regularly organization of training activities?Improvement of employee career advance-ment mechanisms?Enhancement of compensation and bene?ts?Regular health check-ups?Improvement of performance appraisals?Employee communication and feedback

mechanisms

?Increased Investment in R&D?Improvement of communi-

cation e?ciency?Quality and safety manage-

ment?Optimization of service

processes

?Provision of Employment

Opportunities?Conducting public welfare

activities

Communications with Stakeholders

Sustainable Development Governance???? Environmental, Social, and Governance (ESG) Report

Building a Solid GovernanceFoundation with Integrityand DiligenceOur PhilosophySolex continuously improves its corporate governance system,upholds compliance as a fundamental principle, strengthens riskmanagement mechanisms, proactively expands and facilitatescommunication channels with investors, ensures the timeliness,accuracy, and transparency of information disclosure, e?ectivelysafeguards the rights and interests of all shareholders, and consol-idates the foundation for long-term steady operations.

???? Environmental, Social, and Governance (ESG) Report

Our ActionsCorporate governanceCompliance Operation and Risk ManagementInvestor Relations Management andShareholders’ Rights and InterestsBusiness EthicsSDGs

General Meeting of ShareholdersThe General Meeting of Shareholders, as the Company's highestauthority, exercises decision-making power over major mattersin accordance with the law. During the Reporting Period, theconvening, holding, and voting procedures of all General Meet-ings of Shareholders strictly complied with the Aicles of Associ-ation, the Rules of Procedure for General Meetings of Sharehold-ers, and other relevant regulations. Lawyers were engaged towitness the legality and compliance of the meetings on-site.There were no instances of major matters being implementedwithout the approval of the General Meeting of Shareholders,nor any cases of implementation prior to deliberation.

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其中召开临时股东会次；

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其中召开临时股东会次；

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Key Performance

During the Reporting Period,

Corporate GovernanceSolex has further standardized corporate operations to form a governance structure with clearly de?ned powers and responsibilitiesand e?ective checks and balances among the General Meeting of Shareholders, the Board of Directors, committees, and the manage-ment team in strict compliance with the Company Law of the People's Republic of China (the "Company Law"), the Securities Law of thePeople's Republic of China (the "Securities Law"), and other applicable laws and regulations, as well as internal governance documentssuch as the Aicles of Association. During the Reporting Period, in alignment with regulatory requirements and operational realities,the Company abolished the Board of Supervisors and transferred its functions and powers to the Audit Committee under the Boardof Directors, further clarifying the boundaries of supervisory responsibilities and enhancing the e?ciency and professionalism ofgovernance oversight.

Organizational Structure

Administration Center

Audit Department

Board of Directors

Special Meeting of Independent Directors

Strategy and ESG CommitteeAudit CommitteeGeneral Manager

Board O?ce

Meeting of Shareholders

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Nomination and Remuneration Committee

Building a Solid Governance Foundation with Integrity and Diligence???? Environmental, Social, and Governance (ESG) Report

Environmental Management CenterStrategic Investment DepartmentRobotics DivisionSafety Management CenterEquipment Procurement CenterIDM DivisionHuman Resources DepartmentLegal DepartmentIT CenterFinance Center

A total of ? General Meetings of Shareholders were held,

including ? annual General Meeting of Shareholders and

? extraordinary meetings;

?? proposals were reviewed and approved;

and ??? attendances of minority shareholders exer-

cised their voting rights at the meetings.

Key Performance

Board of DirectorsThe Board of Directors serves as the Compa-ny's decision-making body and, in strictaccordance with the Rules of Procedure forthe Board of Directors and other systems,exercises operational and managerialauthority within its scope of powers, imple-ments resolutions of the General Meeting ofShareholders, formulates business plans andinvestment proposals, and ensures scienti?cdecision-making and standardized gover-nance.

The Company places emphasis on Board diversity, continuously optimizing its composition bycomprehensively considering gender, age, professional background, career experience, andindustry expertise, thereby consolidating the professional foundation for directors' performanceof duties and providing robust professional support for business development. Meanwhile, inAugust ????, the Company elected an employee director to represent employee interests andparticipate in discussions and decision-making on major Board matters, further aligning Boarddecisions with operational realities and employee development needs. As of the end of theReporting Period, the Company had a total of ? directors, of whom ??.??% were female.

Board of Directors Composition and Diversity

Key PerformanceDuring the Reporting Period,

During the Reporting Period,

The Board of Directors consists of the AuditCommittee, the Nomination and Remunera-tion Committee, and the Strategy and ESGCommittee. Each committee is accountableto the Board of Directors, composed of direc-tors, and operates in accordance with theAicles of Association and the Rules of Proce-dure for Board Committees to ensure profes-sionalism in decision-making mechanismsand e?ective execution.

Board Committees

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Bachelor’s DegreeMaster’s DegreeDoctoral degree or above

??%

?person?persons

?persons

By academic quali?cation

Composition of the Board of Directors

?person

?person

?persons

?personsBy age

MaleFemale

?persons

?persons

By gender

?? to ?? years old?? years old or above?? to ?? years oldUnder ?? years old

Building a Solid Governance Foundation with Integrity and Diligence???? Environmental, Social, and Governance (ESG) Report

The Board of Directors held ??meetings, with an average atten-dance rate of ???%.A total of?? resolutions were

passed at the meetings of theBoard of Directors.

The Audit Committee convened ? meet-ings and reviewed and approved ?proposals;The Nomination and RemunerationCommittee convened ? meetings andreviewed and approved ? proposals;The Strategy and ESG Committeeconvened? meetings and reviewed and

approved ? proposals.

Key Performance

Remuneration Management for Directorsand Senior Management

During the Reporting Period，The Board of Directors consists of ? members, ? of whom are independent directors, accounting for ??.??%;The Company convened? special meeting of independent directors, at which ? proposal was reviewed and approved;

Independent directors accounted for??.??% of the Strategy and ESG Committee;

Independent directors accounted for??.??% of the Nomination and Remuneration Committee;Independent directors accounted for??.??% of the Audit Committee.

The Company has formulated the Procedures for the Work of Independent Directors, clarifying their duties and authorities to ensuree?ective performance; the convener of the Audit Committee is an independent director with an accounting background, which strength-ens professional competence.

To continuously enhance operating performance andmanagement standards and to fully motivate directorsand senior management, the Company formulated theRemuneration and Assessment System for Directors, Super-visors, and Ocers. In terms of remuneration structure,independent directors receive ?xed allowances and do notparticipate in performance assessments; non-indepen-dent directors' remuneration is determined based on theiractual positions; a performance-linked remunerationsystem is adopted for o?cers, with performance bonusesdirectly tied to overall Company performance and individ-ual assessment results.

Board Independence

In accordance with the Listing Rules, the Measures for the Administration of Independent Directors, the Aicles of Association, and otherinstitutional documents, the Company conducted di?erentiated evaluations of directors' performance across ?ve dimensions: ful?ll-ment of ?duciary duties, diligence obligations, professional competence, independence and ethical standards, and compliance in dutyperformance. This strengthened directors' self-discipline and standardized their conduct. During the Reporting Period, all directorswere evaluated as competent. In addition, the Board of Directors assessed the independence of independent directors for ???? and ????and found no circumstances that could a?ect their independent and objective judgment.

E?ectiveness Assessments of Board of Directors

Metrics????????????

Total pre-taxremuneration fordirectors, o?cers,and supervisorsduring their termof o?ce from theCompany (RMB??,???)

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Note: The total remuneration statistics for ???? and ???? include supervisors; thetotal remuneration statistics for ???? include remuneration for supervisors duringtheir term of o?ce.

Building a Solid Governance Foundation with Integrity and Diligence???? Environmental, Social, and Governance (ESG) Report

Key Performance

Compliance ManagementTo comprehensively advance the law-based governance development and compliance manage-ment of the enterprise and enhance lawful and compliant operations, the Company has formulat-ed the Compliance Management Manual, the Compliance Obligation Management System, the Com-pliance Risk Management System, and the Compliance Review and Repoing Management System,providing system safeguards for compliance management.The Company has established a compliance management system based on the PDCA(Plan-Do-Check-Act) cycle. By analyzing the organizational environment, identifying stakeholderrequirements and compliance obligations, assessing compliance risks, planning measures toaddress risks and opportunities, and determining and implementing interrelated processes withinthe compliance management system, the Company achieves the intended outcomes of compli-ance management. In addition, the Company has established a four-tier compliance managementorganizational structure of "decision-making?management?execution?supervision," promotingcomprehensive and end-to-end compliance coverage.

Compliance Operation and Risk ManagementThe Company always regards integrity and compliant operations as the cornerstone of its survivaland development, thoroughly implementing the compliance policy of "abiding by rules, honoringcommitments, operating prudently, and pursuing long-term success," improving its compliancemanagement system, identifying and preventing compliance risks, optimizing internal controlmechanisms, paying taxes in full in accordance with the law, and ensuring steady and lawful busi-ness operations.

Various departments of the Company promote compliance culture in di?erent forms, formulateindicators to measure the e?ectiveness of compliance culture development, and, through coordi-nation between the Legal Department and the Human Resources Department, conduct irregularspecialized compliance training in conjunction with law-based governance publicity and education,focusing on professional topics such as trade security compliance and customs laws and regula-tions, thereby strengthening employees' compliance knowledge and practical capabilities.

Case Study: Policy Interpretation of Announcement No. ?? of ???? by Six Depart-ments Including the General Administration of CustomsTo strictly implement the requirements of Announcement No. ?? of???? issued by six departments including the General Administration ofCustoms and to strengthen full-process compliance management ofimport and export customs operations, the Company organized special-ized training for customs o?cers and heads of relevant import andexport departments. The training comprehensively interpreted keyprovisions of the announcement, including the scope of goods subjectto four categories of measures and specialized account book manage-ment requirements, and, in combination with the Company's importand export practices, systematically reviewed compliance proceduresto enhance employees' compliance capabilities and fortify the Compa-ny's customs compliance defenses.

During the Reporting Period,The Company conducted ? legal training sessions,totaing

??? hours,with a total of ?? participants.

Organizational Structure for Compliance Management

Responsible for strategic decision-making and institutional approv-al of the Company's compliance management workOrganizes, coordinates, and supervises compliance managementwork and carries out routine tasksImplement speci?c implementation in accordance with uni?edinternal control requirements

??Building a Solid Governance Foundation with Integrity and Diligence???? Environmental, Social, and Governance (ESG) Report

Management BodyIntellectual Property CenterExecutive BodiesFunctional Departments

Decision-Making BodyGeneral Manager

Responsible for testing and supervising the operation of the compli-ance management systemSupervisory BodyInternal Control Department

Case Study: Special Training on Contract Risk Prevention Measures

To e?ectively avoid various contractual legal risks and safeguard the Company's legiti-mate rights and interests, in April ????, the Company's Legal Department and a Vietnam-ese advisory law ?rm conducted special training on contract risk prevention measures.The training focused on compliance control throughout the entire contract lifecycle,covering counterparty credit investigations during negotiation and signing, prevention oflegal risks in contractual clauses, risk screening during performance, dispute resolutionpathways, and closed-loop management during enforcement. Through this training,participants further strengthened their awareness of contract risk prevention and e?ec-tively enhanced contract management and risk handling capabilities.

Key Performance

the Company provided sessions of training on internal risk,with a total of???participants and for a total training duration of?,??? hours.??

To accelerate the development of the Company's risk management system and standardize andstrengthen risk management, the Company has formulated the Compliance Risk ManagementSystem and established a risk management organizational framework directly led by the GeneralManager, coordinated by the Internal Control Department, and fully participated in by all depart-ments. Through risk identi?cation, assessment, response, early warning, and emergency mecha-nisms, the Company reinforces risk management responsibilities at all stages and forms compli-ance risk assessment reports. Meanwhile, the Company conducts company-wide risk manage-ment culture education and promotion, embedding risk prevention concepts into employees'mindset and daily work, and strengthening awareness and accountability.

Risk Management

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RiskIdenti?-cation

Risk identi?cation personnel use methods such as questionnaire surveys, Delphimethod, sensitivity analysis, and scenario analysis to identify compliance risks, andsubmit them to the Internal Control Department for summary and risk databaseestablishment.Risk management departments analyze and rate risks based on occurrence probabilityand impact degree, determine risk levels, and submit them to the Internal ControlDepartment for veri?cation.Risk management departments select risk response strategies and plans such as riskretention, avoidance, mitigation, or transfer for di?erent types of risks, and after beingsummarized by the Internal Control Department, submit them to the Company forapproval.Risk management departments continuously monitor the implementation of riskresponse plans, regularly summarize and analyze, and continuously improve riskcontrol systems and processes.

Compliance Risk Management Process

RiskAssess-

ment

RiskResponse

RiskMonitor-

ing

During the Reporting Period,

??Building a Solid Governance Foundation with Integrity and Diligence???? Environmental, Social, and Governance (ESG) Report

Key Performance

the Company paid a total of?,???.??(in RMB ??,???) in taxes.During the Reporting Period,

Note: The statistical scope is based on the treasury entry period.

To ensure asset security and the authenticity and completeness of ?nancial reports and related information and to improve opera-tional e?ciency, the Company has formulated the Internal Control Manual, the Internal Control System, and the Internal Audit System,further standardizing and optimizing key control requirements across management areas and business processes. The Company'sinternal control activities include but are not limited to: Core operational processes such as sales and collections, procurement andexpenses and payments, and production management, while incorporating the management of holding subsidiaries into key internalcontrol areas. By strengthening centralized management and supervisory inspections over subsidiaries, the Company achievesfull-level internal control coverage and ensures standardized and e?ective overall operations.

The Company regards ?nancial management as the coresupport of operations. By strictly implementing the FinancialManagement Rules and clarifying standards for ?nancialaccounting, budget management, fund control, and cost controlacross the entire process, the Company consolidates the ?nan-cial foundation for sustainable development through standard-ized and transparent ?nancial management. The Company hasalso formulated the Tax Management Measures to standardizethe entire process of tax related business research, accounting,declaration, monitoring, planning, evaluation, forecasting, andreporting. The Company enjoys various tax incentives accordingto law, including additional deductions for R&D expenses,high-tech enterprise tax preferences, and tax reductions andexemptions for employing retired soldiers and key groups.In ????, the Company conducted ? tax-related audits to furtherstrengthen the rigor of tax management.The Company's Audit Department, under the Audit Committee, inspects and supervises the operation of internal controls and formsinternal audit reports on identi?ed de?ciencies, irregularities, improvement recommendations, and progress in recti?cation. In addi-tion, the Company engages third-party institutions for conduct independent internal audits every year and issue the Internal ControlAudit Repo to enhance objectivity and credibility of the audits. Audit results are integrated with operational optimization andaccountability mechanisms to continuously strengthen internal supervision e?ectiveness.

Internal ControlFinancial and Tax Management

次，

人。

Key PerformanceDuring the Reporting Period,the Company conducted?audit projects, covering ?business divisions,and identifying??areas for improvement, with a ???% de?ciency recti?cation rate.

Internal Control Organizational Structure

Board of DirectorsResponsible for the establishment and e?ective implementation of internal controlFinance DepartmentResponsible for organizing and coordinating the establishment and subsequent maintenance of the internal control systemFunctional Departments and SubsidiariesImplement speci?c implementation in accordance with uni?ed internal control requirementsAudit DepartmentResponsible for testing and supervising the operation of the system

??Building a Solid Governance Foundation with Integrity and Diligence???? Environmental, Social, and Governance (ESG) Report

Key Performance

Key PerformanceDuring the Reporting Period,the Company disclosed? regular reports and ?? interim reports,with a total of ??? disclosed documentspublished online;There were no penalties imposed for violationsrelated to information disclosure.

Investor Relations Management andShareholders’ Rights and InterestsSolex attaches great importance to investor relations manage-ment and shareholder rights protection, strictly complying withlaws, regulations, and regulatory requirements, responding tomarket concerns in a timely and accurate manner, eliminatinginformation barriers, helping investors gain a comprehensiveunderstanding of the Company's value, and enhancing investorrecognition.

To strengthen e?ective communication with investors andprotect the legitimate rights and interests of minority investors,the Company has formulated the Investor Relations Manage-ment System and designated the Board Secretary as the personin charge of investor relations management, responsible fororganizing and coordinating related work. To enhance investorrelations management, the Company has established an inves-tor relations section on its o?cial website to timely release andupdate relevant information, collect and respond to investors'inquiries, complaints, and suggestions, continuously optimizecommunication channels, and e?ectively safeguard investors'right to know.

Solex strictly ful?lls its information disclosure obligations and,in accordance with the Measures for the Administration of Infor-mation Disclosure by Listed Companies, has formulated the Infor-mation Disclosure Management System, which clari?es that theBoard of Directors uniformly leads and manages informationdisclosure, with the Board Secretary responsible for execution.To ensure compliance and fairness in information disclosure,the Company strictly regulates insider information manage-ment, stipulating that before lawful disclosure, insiders andentities that illegally obtain insider information shall notdisclose or use such information for insider trading, and prohib-iting any organization or individual from illegally obtainingundisclosed information by any means.

Information Disclosure

Investor relations management

During the Reporting Period,

The Company responded to?? investor inquiries

on the SSE E-Interactive Platform,with a ???% reply rate;Received??? investor calls;

Held ? open investor forums.

the Company conducted??? investor

reception activities,including ?? on-site research receptions,with ??? attendances;

Investor Communication Channels

Company announcementGeneral Meeting of ShareholdersCompany website, WeChat o?cial accountInvestor hotline, email, faxRegular open investor forums, performance brie?ngsShanghai Stock Exchange E-interactive platformReception of various institutional research activitiesMedia interviews and reports

??Building a Solid Governance Foundation with Integrity and Diligence???? Environmental, Social, and Governance (ESG) Report

Mid-????????Unit????

Cash Dividend per ShareTotal Cash Distribution (Including Tax)Proportion to Net Pro?t Attributable to Shareholders ofthe Listed Company in Consolidated Financial Statements

yuan/shareIn RMB ??,???%

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The Company has formulated the Public Opinion Management System and established a leading group to address public opinion matters and manage media information. By closely monitoring key publicopinion trends, promptly collecting, analyzing, and verifying information with signi?cant impact, establishing rapid response and emergency handling mechanisms, and leveraging online interactionadvantages to guide public opinion appropriately, the Company e?ectively prevents adverse impacts of public opinion on its stock price, reputation, and normal operations, safeguarding its brand imageand market standing.

Capital Market Public Opinion Management

While pursuing steady development, the Company attaches great importance to the protection of creditors' rights and interests. During the Reporting Period, the Company maintained sound solvency,strictly ful?lled the agreements and commitments in bond prospectuses, repaid principal and interest on time and in full, and experienced no defaults or delayed payments, e?ectively safeguarding cred-itors' legitimate rights and interests. In ????, the Company's issuer credit rating and "Solex Convertible Bonds" remained at AA with a stable outlook, demonstrating strong recognition by the capitalmarket of its operational strength, solvency, and development prospects.

Protection of Creditors’ Rights and Interests

The Company highly values reasonable returns to investors. While balancing capital needs and sustainable development, it strictly follows the pro?t distribution policy stipulated in the Aicles of Associ-ation and formulated the Shareholder Dividend Return Plan (2025–2027), clearly prioritizing cash dividends to provide sustained and stable returns to shareholders. Meanwhile, to safeguard the legiti-mate rights and interests of the Company and all shareholders and prevent fund occupation risks, the Company has formulated the Management System for Preventing the Occupation of Company Fundsby Controlling Shareholders and Related Paies, establishing a long-term mechanism to ensure fund security and standardized operations.

Note: The cash dividend proposal for ???? is calculated based on the Company’s total issued share capital as of March ??, ????.

Returns to Shareholders

??Building a Solid Governance Foundation with Integrity and Diligence???? Environmental, Social, and Governance (ESG) Report

Key Performance

Business EthicsThe Company strictly complies with the Anti-Unfair Competition Law of the People's Republic of China andthe Interim Provisions on Prohibiting Commercial Bribe and other laws and regulations, adopts a zero-toler-ance attitude toward corruption and commercial bribery, continuously strengthens business ethics, andstrives to create a clean and upright business environment.Adhering to integrity and honest operations, the Company has formulated the Integrity and Self-DisciplineManagement System, and requires all employees to establish correct professional ethics and eliminate illegaland disciplinary violations at the source. The Company has established a Discipline Inspection Committee asa supervisory body to oversee and investigate employee misconduct. By strengthening institutionalconstraints, signing integrity agreements, and reinforcing ideological education, the Company preventscorruption risks and safeguards the legitimate rights and interests of shareholders, customers, and partners.

Anti-Corruption and Anti-Bribery

?,??? individuals signed integrity agreements and related business

conduct documents,

During the Reporting Period,

with an integrity commitment letter signing rate of??.??%.

Organizational StructureDiscipline InspectionCommittee

Department heads

All employees of

the Company

Anti-corruption Measures

Employees are prohibited from using the convenience of position to illegally take com-pany assets for personal use through methods such as embezzlement, theft, or fraud.Employees are prohibited from soliciting or accepting money or other forms of bene?tsfrom others during business interactions or while performing their duties, or from o?e-ring bribes to others.Employees are prohibited from exceeding their authority during the performance of th-eir duties and must act in accordance with Company rules and procedures; handlingmatters beyond their authorities, or improperly exercising their power to harm the int-erests of the Company or others is strictly forbidden.Employees are prohibited from privately using company resources for personal or others'bene?t, causing losses to the Company's interests.

??Building a Solid Governance Foundation with Integrity and Diligence???? Environmental, Social, and Governance (ESG) Report

The committee consists of representatives from the labor union, human resources department,administration department, internal audit department, and department heads. It has the authori-ty to formulate the Integrity and Self-Discipline Management System and supervise, investigate,and handle violations of the integrity and self-discipline requirements.Conduct comprehensive promotion and strict supervision of integrity and self-discipline culturefor department employees, and report any violations of integrity and self-discipline requirementsto the Discipline Inspection Committee promptly.Comply with discipline, accept supervision, and cooperate fully with the work of the DisciplineInspection Committee.

Anti-monopoly and Anti-unfair CompetitionTo strengthen and enhance the Company's antitrust compliancemanagement in its business operations, the Company hasformulated the Anti-Monopoly and Anti-Unfair CompetitionManagement System, under which the compliance o?cer isresponsible for establishing and improving the internal controlsystem for the prevention of monopoly and unfair competition,incorporating antitrust and anti-unfair competition manage-ment requirements into performance evaluations, and continu-ously enhancing employees' compliance awareness throughcompliance training. In conducting overseas business, the Com-pany strictly complies with the antitrust laws and regulations ofthe countries or regions in which it operates, eliminates all formsof unfair competition, including abuse of market dominanceand unlawful implementation of business concentrations, and iscommitted to maintaining a fair and orderly market competitionenvironment.In ????, the Company obtained the nation's ?rst Fair Competi-tion Compliance Management System Certi?cation Certi?catefor business operators. During the Reporting Period, no lawsuitsor major administrative penalties resulted from the Company'sunfair competition practices.

Fair Competition Management System Certi?cation

Case Study: Special Training on the Establishment of the Fair Competition Compliance Management SystemIn response to relevant national policies and the requirements of the???? "Fair Competition Policy into Enterprises" special campaign, inMarch ???? the Company conducted special training for internalauditors on the establishment of the fair competition compliancemanagement system. The training focused on key compliance pointsrelated to antitrust and anti-unfair competition, with emphasis onthe fundamental overview of fair competition compliance, in-depthinterpretation of relevant policies and standard documents, anddetailed introduction of the framework and implementationpathway of the fair competition compliance management system,thereby assisting internal auditors in clarifying compliance boundar-ies in business operations and enhancing their risk identi?cationcapabilities.

Anti-monopoly and Anti-unfair Competition Measures

??Building a Solid Governance Foundation with Integrity and Diligence???? Environmental, Social, and Governance (ESG) Report

The Company is prohibited from reaching or imple-menting monopoly agreements or other similar collu-sive behaviors in business interactions with competi-tors, industry associations, or upstream and down-stream business partners.The Company is prohibited from abusing its marketdominance to manipulate the services, quantities, orother trading conditions of goods.The Company will proactively report any concentrationof undertakings that meets the reporting standards tothe enforcement agencies for anti-monopoly review.The Company is prohibited from engaging in or partici-pating in behaviors that disrupt market competitionorder and harm the legitimate rights and interests ofother operators or consumers.

次，

人。

Whistleblowing Channels and Protection of WhistleblowersThe Company encourages all employees to actively participate in supervision and to report individu-als or conduct that harm the Company's interests, violate laws and regulations, involve corruption, orotherwise breach business ethics. It has formulated the Repoing and Investigation ManagementSystem and the Internal Management Whistleblowing System to standardize the handling proceduresfor reported matters, promptly verify and address received reporting leads, and hold peopleconcerned accountable. The Company has established reporting and complaint platforms, includinghotlines and email addresses, accepting both real-name and anonymous reports and complaints,strictly safeguarding the con?dentiality of whistleblowers' information, and prohibiting any form ofretaliation. The Company has established a whistleblower incentive mechanism, under which report-ed matters are comprehensively evaluated based on their nature, severity, and losses recovered, andmonetary rewards are granted to whistleblowers to stimulate proactive supervision.

??Building a Solid Governance Foundation with Integrity and Diligence???? Environmental, Social, and Governance (ESG) Report

Reporting ChannelsEmailTelephone or SMSO?ine channelsSpecial Circumstances

Reports involvingsenior executives shallbe submitted directly

to the O?ce of theGroup President

report@solex.cn ???????????Reporting Mailbox

Our Philosophy

Solex proactively addresses the challenges posed byclimate change, strengthens pollutant dischargecontrol, vigorously develops clean energy, enhancesresource utilization e?ciency through energy-savingtransformation, and accelerates the research anddevelopment of green and energy-e?cient products,thereby contributing to harmonious coexistencebetween humanity and nature.

Our Actions

Response to Climate ChangeEnvironmental Compliance ManagementResource UtilizationPollutant EmissionsImplementation of Green OperationProtection of Ecosystem and BiodiversitySDGs

Nurturing the Ecosystem andAdvancing Sustainably ThroughGreen Development

???? Environmental, Social, and Governance (ESG) Report

Response to Climate ChangeGovernanceIn the face of the tests and challenges brought by climate change, the Company actively responds to the national "Dual Carbon" strategic deployment, identi?es climate change response as a ?nancialmateriality issue, formulates the Greenhouse Gas Invento Procedure, establishes a greenhouse gas inventory task force, standardizes organizational boundaries and emission data inventory processes,and ensures that the greenhouse gas emission inventory system is systematic, compliant, and veri?able, thereby advancing green transformation and sustainable development through concrete actions.

·Approve the Company's GHG policy, emission reduction targets, and policy statements;·Lead the GHG management review meetings, and listen to reports from the Energy Department on GHG project progress and implementation;·Ensure the provision of necessary resources required for GHG projects.

Management Representative

·The department head is the primary responsible person for GHG management;·Formulate GHG management policies, emission reduction targets, implementation plans, and policy statements;·Coordinate the operation and maintenance of the ISO????? system, and organize the setting of organizational boundaries and identi?cation of GHG emission sources;·Regularly report the progress of the GHG project to the management representative, and take the lead in preparing the GHG inventory and GHG emission report;·Oversee and plan GHG work in the plant, coordinate relevant departments in implementing related tasks, and serve as the main contact point;·Organize internal veri?cation prior to the formal ?nalization of the emission report.Energy Department

·Assist various departments in formulating GHG emission reduction targets, and track the progress and e?ectiveness of target implementation;·Take the lead in organizing the annual GHG emission inventory, and prepare and publish the GHG emission inventory and report.GHG Inventory Team Leader

·Cover all functional departments and consolidate data related to various operational activities;·Identify GHG emission sources within each department and submit raw data records;·Promote the implementation of GHG emission reduction measures within each department and supervise the achievement progress of emission reduction targets.GHG Inventory Team Member

Responsibilitiesof GHG InventoryManagement Organization

?????? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

Strategy

Focusing on core operational segments such as production and market expansion, the Company identi?es potential risks arising from climate change and opportunities for green development,advances risk assessment and graded control, and formulates targeted response plans to support steady development in the low-carbon transition.

Risk TypeRisk Description

Probabilityof Occurrence

Impact Magnitude1Impact Time2Value Chainframe3

Priority Ranking4Links of Impact

Potential Financial ImpactResponse Measures

PhysicalRisks

Acute RisksLowHighShort to

medium term

MediumUpstream,operations,downstream?. The Company's operating locations arevulnerable to extreme weather events such as?oods and typhoons, which may damagefacilities, operations, and supply chains,esulting in business interruptions orincreased costs?. Sudden climate disasters may cause waterand power outages, a?ecting production

?. Establish an extreme weather earlywarning mechanism, formulate emergencyresponse plans, reinforce facilities in coastaloperating locations, stockpile emergencysupplies, and develop business continuityplans?. Activate self-owned steam turbines,formulate backup emergency measures, andconduct regular emergency drills

Increasedoperating costs

Chronic RisksLowMediumLong-termMediumOperations,downstr

?. The Company's major operating locationsare primarily situated in coastal areas, posingpotential risks from sea level rise?. Under the trend of global warming, theCompany's cooling energy consumption hasincreased signi?cantly, and high tempera-tures adversely a?ect employee safety andhealth

Assess the impact of sea level rise on operat-ing locations and adjust site selection accord-ingly; comprehensively adopt high-e?ciencyenergy-saving equipment, optimize produc-tion processes to reduce cooling demand,promote clean and green production, andconserve energy while reducing consump-tion

Increasedoperating costs

Market RisksMediumHighShort to

medium term

MediumDownstreamCustomers favor energy-saving and low-car-bon products; if the Company's products failto meet customer requirements, it may resultin customer loss and reduced operatingrevenue

Conduct market research, strengthencommunication with customers, and prompt-ly collect customer needs and expectationsregarding energy management; organizereviews of customer requirements to ensure

Decreasedoperating incomeLow: If the risk occurs, it will have little to no noticeable impact on the enterprise’s ?nances, reputation, or operations, and losses can be easily absorbed.Medium: If the risk occurs, it will cause some negative impact on the enterprise's ?nances and reputation, and measures may be needed to mitigate the losses.High: If the risk occurs, it will cause severe ?nancial loss to the enterprise, damage to the brand, and may even a?ect business continuity, and signi?cant resources may be needed to recover.?

Short-term: Generally refers to within ? year after the end of the Company’s sustainability reporting period (including ? year).Medium-term: Generally refers to ? to ? years after the end of the Company’s sustainability reporting period (including ? years).Long-term: Generally refers to more than ? years after the end of the Company’s sustainability reporting period.?

Upstream: Involves raw material suppliers, procurement, and logistics, a?ecting the stability of the supply chain and raw material costs.Operations: Involves production, manufacturing, and internal processes, a?ecting daily operations and production e?ciency.Downstream: Involves distribution, sales, and customer service, a?ecting customer satisfaction, market share, and brand image.?

High: The risk could lead to signi?cant ?nancial loss, business disruption, or severe legal consequences, requiring immediate action.Medium: The risk has some impact on the business but can be addressed or mitigated within a reasonable timeframe.Low: The risk has relatively minor impact on the business and can be handled in routine operational management.?

??

Trans-formationalrisks

Policy andRegulatory Risks

MediumMediumMedium and

long-term

MediumOperationsThe introduction of new carbon emissionmanagement and environmental policies bythe government and increasingly stringentregulatory requirements may increase theCompany's compliance costs

Track updates to environmental protection,energy, and carbon emission regulations,establish compliance review mechanisms,and proactively deploy green technologies

Increasedcompliance costs.Technologicalrisks

MediumHighShort to

medium term

MediumOperations,downstream

The introduction of new ?elds, newequipment, and new processes entails riskssuch as long investment cycles, failure tomeet market trends, and returns falling shortof expectations

Establish special R&D funds, collaborate withresearch institutions to carry out low-carbontechnology pilots; establish controlprocedures for new product development,conduct market research, and strictlymanage the introduction process of newproducts and processes

Increased R&D expenditure

???? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

Risk TypeRisk Description

Probabilityof Occurrence

Impact Magnitude1Impact Time2Value Chainframe3

Priority Ranking4Links of Impact

Potential Financial ImpactResponse MeasuresRaw materialrisk

MediumMediumShort to

medium term

MediumOperationsExtreme weather may cause ?uctuations inraw material prices, increasing the Compa-ny's production costs

Establish diversi?ed raw material procure-ment channels and enhance supply chainmanagement e?ciencyIncreased operatingcostsReputationrisks

LowMediumShort to

medium term

MediumOperationsFailure to properly manage climate risks maydamage the Company's reputation, therebya?ecting brand value and customer trust

Establish a climate change informationdisclosure mechanism, participate in industryenvironmental initiatives, and conduct publicawareness activitiesDecreased operatingincome

Low: The opportunity has relatively minor impact on business is relatively small, but it can still bring some revenue or e?ciency improvements, and can be handled routine operational management without the need for signi?cant resource investment or strategic adjustments.Medium: The opportunity can bring certain business growth or market share improvements, has a positive impact on the business, but requires the enterprise to invest resources and adjust strategies within a certain period to address and seize the opportunity.High: The opportunity can bring signi?cant market breakthroughs, business growth, or technological innovations, signi?cantly improves the enterprise's competitiveness and pro?tability, and requires the enterprise to take immediate action, invest considerable resources, and possibly adjust its overall strategy to fully leverage thisopportunity.?

??

Opportunity TypeOpportunity Explanation

Probabilityof Occurrence

Impact MagnitudeImpact Timeframe

Value ChainLinksof Impact

Priority Ranking5Potential Financial ImpactResponse MeasuresEnergy AlternativesMediumMediumShort to medium

term

MediumOperationsClimate change encourages the Company toincrease the proportion of clean energyusage, which helps mitigate future energyprice escalation risks and promotesparticipation in the carbon trading market

Assess the existing energy structure,formulate clean energy substitution plans,prioritize the adoption of renewable energysuch as solar and wind power; optimizeenergy management systems, reduce energyconsumption through energy-savingtransformation, and participate in the carbontrading market

Reduced operating costs

Technological UpgradeMediumMediumMedium and

long-term

MediumOperationsClimate change creates demand andopportunities for technological innovation,driving the emergence of new technologies,new processes, and new products, therebyimproving production e?ciency and optimiz-ing manufacturing processes

Increase R&D investment, adopt collabora-tive R&D models, promote the developmentof low-carbon and intelligent manufacturingtechnologies; introduce digital tools tooptimize production processes and enhancee?ciencyReduced operating costs

Market ExpansionMediumHighMedium and

long-term

HighOperationsConsumer demand for energy-e?cientproducts continues to grow, o?ering broadmarket prospects; customs AEO certi?cationenhances market recognition

Continuously develop green and energy-e?-cient products, apply for green certi?cations,strengthen market promotion, and highlightthe environmental attributes of products;obtain customs AEO certi?cation andmaintain its continuous validity

Augmented operating income

Transfor-mationalrisks

???? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

Impact, Risk and Opportunity Management

Focusing on the identi?cation, assessment, and management ofclimate-related risks and opportunities, the Company has estab-lished a full-process risk management mechanism, and hasformulated dedicated response plans for extreme weatherevents such as typhoons and heavy rainfall frequently occurringin its operating locations, continuously enhancing its capacity toaddress climate change.

Management Process

To implement the strategic deployment of carbon emission reduction,carbon peaking, and carbon neutrality, Solex has introduced multiplespeci?c carbon reduction implementation plans, regularly conductedcarbon knowledge training to strengthen employees' low-carbonawareness, and actively utilized a smart carbon emission managementplatform to achieve real-time tracking and dynamic management ofcarbon footprints.

From October ?? to ??, ????, Solex participated inthe special training program themed "Developingthe New Energy Industry Chain and Advancing 'DualCarbon' Work," jointly organized by the Organiza-tion Department of the Xiamen Municipal PartyCommittee, the Municipal Development andReform Commission, and Tong'an District. Orientedtoward practical application, the training was deliv-ered by experts and scholars in the "Dual Carbon"?eld, who systematically outlined the comprehen-sive green transformation of economic and socialdevelopment and the international and domesticdevelopment trajectory and intrinsic logic of the"Dual Carbon" strategy from a macro perspective,analyzed key development priorities and objectivesin the "Dual Carbon" ?eld, and, in conjunction withthe new energy industry, provided practical guid-ance for enterprises on key and emerging topicssuch as zero-carbon industrial parks, carbonmarkets, ESG, carbon footprints, and digital prod-uct passports.

Management Measures

Risk identi?cationand assessment

Risk monitoringand adjustmentsRisk responseEvery March, theenergy depart-ment organizesthe identi?cationand assessmentof climate-relatedrisk factors andupdates theregister ofidenti?ed risksand opportunitiesaccordingly.

Based on theresults of riskidenti?cation andassessment, theCompanyformulates riskresponse strate-gies to ensure thee?ectiveness andoperability ofrelevant measures.

Continuously trackand monitor thee?ectiveness ofrisk measures,grasp changes inrisk status in realtime, and maketargeted adjust-ments andimprovementsbased on actualscenarios.

Optimization ofenergy structure

Proactively deploy clean energy substitution and high-e?ciencyenergy-saving technology upgrades, gradually replace highenergy consumption and high emission equipment, and achievecarbon reduction by improving energy utilization e?ciency.Upgrade ofproductionprocesses

Implement technological transformation and process optimiza-tion to reduce energy consumption and waste emissions, promoteresource recycling, and decrease carbon emissions in productionprocesses.Build a smart carbon emission management platform based onarti?cial intelligence and big data technologies to accurately trackcarbon footprints, meet regulatory requirements, enhancetransparency, and help enterprises set carbon reduction targetsand track the progress of achievement.

Carbon emissionmonitoring andmanagement

Build a carbon emission accounting system, comprehensively sortout the Company's carbon emission data, and provide scienti?cbasis and data support for carbon reduction pathways.Carbonknowledgetraining

Strengthen the communication and training on carbon peakingand carbon neutrality implementation plans, and enhance thegreen development and environmental awareness of employeesand partners.

Supplychainmanagement

Encourage suppliers to use low-carbon raw materials and greenproduction processes, jointly build a green supply chain ecosys-tem, and achieve coordinated carbon emission reduction acrossthe industrial chain.

Case Study: Dual Carbon Thematic Training

??

Smart carbonemissionmanagementplatform

???? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

Indicators and Objectives

The Company closely monitors and regularly conducts greenhouse gas inspections, formulates the annualGreenhouse Gas Invento, and conducts internal reviews and management reviews concurrently to ensure theaccuracy, completeness, and traceability of all data records. In the future, with the objective of supportingcarbon reduction initiatives, the Company will continue to deepen climate change management, improve thecarbon emission accounting system, promote the implementation of energy-saving and carbon reductiontechnologies, and contribute corporate strength to achieving the "Dual Carbon" goals.

Carbon Veri?cationDuring the Reporting Period, the Company engaged a third-party institution to com-plete comprehensive veri?cation of GHG emission quanti?cation, reporting, andemission reduction performance, and obtained a Greenhouse Gas Veri?cation State-ment Certi?cate, providing standardized and veri?able technical support for theCompany's carbon inventory, implementation of emission reduction targets, andcarbon neutrality pathway.Key Performance IndicatorsUnit????Total GHG EmissionsGHG Emission IntensityDirect GHG Emissions (Scope ?)Indirect GHG Emissions (Scope ?)GHG emission reduction

tCO?etCO?e/RMB ??,??? revenuetCO?etCO?etCO?e

???,???.???.???,???.????,???.???,???.??

?????? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

Environmental Compliance ManagementEnvironmental management systemEnvironmental management constitutes a vital cornerstone ofthe Company's green development. The Company strictly com-plies with laws and regulations such as the EnvironmentalProtection Law of the People's Republic of China, and has formu-lated policies including the Solex Environmental Protection Man-agement System and the Solex Environmental Protection Rewardand Punishment System, de?ning the responsibilities of relevantdepartments, incorporating environmental performance intoemployee performance evaluations, and clarifying the standardsfor environmental rewards and penalties. During the ReportingPeriod, the Company further re?ned the implementation ofenvironmental rewards and punishments and introduced newmanagement procedures, advancing the implementation ofenvironmental requirements through institutionalized and stan-dardized management systems.As of the end of the Reporting Period, both the Company and itssubsidiary Zhangzhou Solex had obtained environmental man-agement system certi?cation certi?cates, and Zhangzhou Solexhad also been certi?ed as a national-level Green Factory.

Solex Environmental Management System Certi?cation Certi?cate

Environmental Management Organizational Structure

EnvironmentalManagement Center

Responsible for the daily supervision, management, and monitoring of the Company's environmental protection work,strictly controlling pollutant emissions, continuously improving environmental conditions, ensuring compliance anddeepening emission reduction, and coordinating with government environmental authorities.

Production-relatedDepartments

Cooperate with the Environmental Management Center, be responsible for environmental protection and environmentalrisk management within their respective departments, advocate clean production and recycling in workshops, andeliminate pollutants from the source to the greatest extent possible.

Logistics-relatedDepartments

Cooperate with the Environmental Management Center and relevant departments, proactively promote environmentalprotection initiatives, and ensure the immediate supply of emergency and safeguard materials in procurement.

Key PerformanceDuring the Reporting Period,the Company invested?,???.??(in RMB ??,???) in environmental protection

and paid ?.??(in RMB ??,???) in environmental protection taxes;Number of environmental incidents: ?.

?????? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

Management of Environmental RisksThe Company attaches great importance to environmentalrisk control and continuously improves its environmentalrisk management system. The Company has formulatedthe Procedure for Environmental Factors and OccupationalHealth and Safety Hazard Identication, Evaluation andControl, which stipulates the steps for identifying andevaluating environmental factors, records identi?edenvironmental factors in the Environmental Factors Identi-cation and Evaluation List, applies a multi-factor methodfor preliminary evaluation, and determines signi?cantenvironmental factors based on the evaluation results.To e?ectively strengthen environmental protection andwork safety, the Company has formulated the Environ-mental Hazard Identication System, clarifying theresponsibilities of personnel at all levels, standardizingthe forms and speci?c requirements for routine, com-prehensive, major event, holiday, quarterly, profession-al, and accident-category hazard inspections, anddesignating dedicated personnel from the Environmen-tal Management Center to systematically sort and regis-ter various hazard items, forming a hazard registrationledger to achieve standardized management of hazardidenti?cation and recti?cation.

On September ??, ????, the Company conducted training on the Contingency Plans for EnvironmentalEmergencies for relevant personnel, covering core modules including emergency plans and managementstandards, identi?cation of environmental risk sources and hazard inspection, analysis of common issuesin environmental emergency inspections and drills, emergency organizational structure and responseprocedures, and con?guration of emergency materials and practical response measures. Through acombination of theoretical instruction and case analysis, this training ensured that participants masteredkey emergency points and enhanced their emergency response capabilities.

Hazard Identi?cation

Adhering to the principles of "prevention ?rst, self-rescue ?rst, uni?ed command, and division of responsibilities," and in light of actualconditions, the Company has formulated the Contingency Plans for Environmental Emergencies, established an internal emergency organiza-tion, standardized internal reporting procedures for environmental emergencies, and developed full-process handling procedures for keyareas including wastewater, waste gas, hazardous chemicals, and electroplating workshops.In addition, the Company regularly organizes emergency training and drills for environmental incidents, providing employees with profes-sional theoretical support and enriched knowledge reserves through training, strengthening overall emergency preparedness awareness,and conducting targeted drills based on di?erent emergency scenarios to enhance employees' operational pro?ciency in emergency mea-sures and their capability to respond to unexpected situations.

Emergency Plans and Drills

Key Performance

Key Performance

During the Reporting Period,the Company conducted? environmental emergency training sessions and ?? environmental emergency drill activities.

Case Study: Training on the Contingency Plans for Environmental Emergencies

Emergency Training

??

In ????, the Company conducted a total of ???

environmental hazard inspections within the park,

achieving a???% recti?cation completion rate.

???? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

During the Reporting Period, the Company conducted multi-dimensional specialized environmentaltraining for environmental o?cers and personnel in relevant positions. A total of ?? training sessionswere carried out across various parks, covering environmental regulations interpretation, electroplat-ing wastewater discharge control, solid waste management, VOCs control, ODS management,environmental emergency response, hazardous chemical management, interpretation of environ-mental protection policies, environmental culture promotion, and environmental protection require-ments for new employees and supplier construction, timely disseminating the latest environmentalpolicy information, e?ectively strengthening overall environmental responsibility awareness, andcomprehensively enhancing the Company's environmental knowledge dissemination and compli-ance management capabilities.

The Company regards environmental protection as its own responsibility, continuouslyadvancing the implementation of environmental management objectives and special plans.Its subsidiary, Zhangzhou Solex, has established waste reduction targets to e?ectivelydecrease waste emissions in production processes, promoting the in-depth implementationof environmental protection work through rigid indicators.

Case Study: Training on Relevant Environmental Laws andRegulations and Accident Review

Environmental Protection Training

On April ??, ????, the Company organized training on relevant environmental laws and regulations and accidentreview, primarily covering in-depth interpretation of laws and regulations related to water pollution, air pollution,noise pollution, solid waste pollution, soil and groundwater pollution prevention and control, supplemented byspecialized explanations based on typical penalty cases and current emission standards. A total of ?? people fromrelevant positions participated in the training.

Training Site

Key PerformanceDuring the Reporting Period,the Company conducted?? environmental protection training sessions, with ?,??? participant attendances and a total of ??,??? training hours.

Environmental Targets and Planning

Environmental TargetsAnnual Achievement StatusAchieved compliant treatmentof waste throughout the year;Standardized management anddisposal rate of solid waste: ???%.

Achieved

Achieved

?????? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

Centered on the energy policy of "compliance with law, ?ne management, low-carbonmanufacturing, and sustainable development," the Company has formulated institu-tional documents including the Energy Management Manual, Resource and EnergyManagement Procedure, and Energy Consumption Indicator Assessment ManagementMeasures. The Vice Chairman serves as the top management leader, appoints a man-agement representative, and allocates corresponding resources to ensure the estab-lishment, implementation, maintenance, and continuous optimization of the energymanagement system. In addition, the Company has established an Energy Conserva-tion Leadership Group and a Working Group to coordinate energy use identi?cation,review, and supervision, with each department designating an energy o?cer responsi-ble for departmental energy management.To stimulate enthusiasm for energy conservation and consumption reduction, theCompany conducts monthly and annual energy consumption assessments. Bonusesare granted based on energy performance assessment results. Departments achievingannual targets are awarded the honorary title of "Advanced Collective in EnergyConservation," while departments failing to meet targets are required to verify andanalyze abnormal consumption data and formulate improvement plans. As of the endof the Reporting Period, both Solex and its subsidiary Zhangzhou Solex had obtainedenergy management system certi?cation.

Governance

Resource UtilizationEnergy ManagementEnergy management serves as a core instrument for enterprises to practice green and low-carbon develop-ment and is also a critical pillar for the implementation of ESG strategy. Solex incorporates energy into fulllife-cycle management and reduces energy consumption while improving energy e?ciency through theestablishment of an energy control system, promotion of energy-saving technological transformation, andoptimization of the energy use structure.

Solex's Energy Management System Certi?cation

Xiamen Solex High-tech Industries Co., Ltd.

Resource Management Department

Energy andCarbon Management Engineer

Energy and Carbon Technical Engineer

All Departmentsof the IDM DivisionAll Departmentsof the Group Center

Robotics Division

Energy and Carbon Management Structure

?????? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

DepartmentsDepartmentsDepartments

Strategy

Type of Risk/OpportunityDescription of Risk/Opportunity

Probability ofOccurrence

ImpactMagnitude

ImpactTimeframe

Value ChainLinks of Impact

PriorityRanking

PotentialFinancial Impact

Response Measures

Risk of EnergyPrice Fluctuations

MediumMediumShort to

medium term

MediumOperationsRising costs of electricity or steam andother energy sources increase theCompany's energy costs and compresspro?t margins

Improve energy utilization e?ciencyand reduce energy consumption andcosts through energy-saving andemission-reduction measuresIncreasedoperating costs

Low energye?ciency

MediumMediumShort to

medium term

MediumOperationsOutdated technology, aging equip-ment, and poor management mayeasily lead to low energy e?ciency andhigh unit product energy consumption

Upgrade to high-e?ciency equipmentand processes; conduct regular equip-ment maintenance; develop produc-tion EMS management systems andenergy management systems tomonitor energy consumption data inreal time and focus monitoring andanalysis on high energy consumptionareas

Increasedoperating costs

Policy supportMediumMediumShort to

medium term

MediumOperationsThe government has introducedsubsidies, incentives, and preferentialloans to encourage enterprises to adoptclean energy or improve energye?ciency, carry out energy-savingretro?ts of existing equipment, anddevelop and establish energy andcarbon management centers

Track policies and apply for subsidies ina timely manner; plan clean energyprojects and make sound investmentsin energy-saving retro?ts; formulateenergy e?ciency improvement plansIncrease inoperational income

Technical opportunitiesHighHighLong-termHighOperationsThe introduction of renewable energytechnologies such as photovoltaics andenergy storage can assist enterprises ingreen transformation, green manufac-turing, and electricity cost savings

Fully utilize idle rooftops to invest inphotovoltaic and energy storageconstruction. At present, Changtai hascompleted photovoltaic construction,and in ???? new photovoltaic andenergy storage projects will be added inthe Xiamen areaDecreasedoperating costs

Green andLow-Carbon Culture

MediumMediumShort to

medium term

MediumOperationsenterprise promotes energy conserva-tion culture, enhancing employees'knowledge and awareness of energymanagement and reducing energyconsumption

By carrying out energy-saving andlow-carbon training and energy-savingactivities, foster an energy conservationand low-carbon culture atmosphereand strengthen employees' greenawarenessReducedoperating costs

?????? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

To enhance resilience against energy risks, the Company has formulated the EnergyRisk and Oppounity Control Procedure and established a Risk and Opportunity Assess-ment Team responsible for comprehensive identi?cation, regular assessment, measureformulation, implementation supervision, and e?ectiveness veri?cation of the Compa-ny's energy risks and opportunities, ensuring controllable energy risks.

On December ??, ????, Solex conducted energy-saving training on compressed air inpressure pipelines for production line employees and safety o?cers. The trainingexplained pressure pipeline operation and maintenance and emergency handlingprocedures, and highlighted ?ve key points for reducing losses through energyconservation, further clarifying practical pathways for pressure pipeline energy-sav-ing work.

Impact, Risk and Opportunity Management

Management Process

RiskIdenti?cation

Each department conducts risk identi?cation and prepares the Energy Riskand Oppounity Assessment Form, which is consolidated and reviewed bythe Energy Conservation Promotion Group and reported to top manage-ment.

RiskAssessment

Identi?ed energy risks are scored according to the likelihood of occurrenceand degree of loss to determine risk levels and recti?cation priorities.

Risk Control

Risk control measures such as routine monitoring, periodic tracking andanalysis, and formulation of targeted plans are adopted based on risklevels, and their e?ectiveness is con?rmed through review.Risk Update

When external conditions or available resources change, risk control plansare updated in a timely manner.

The Company integrates the concept of energy conservation and emission reduction intocorporate culture development, regularly organizing energy-saving knowledge training,promotional activities, and on-site practical guidance to comprehensively enhanceemployees' awareness and practical capabilities, ensuring e?ective implementation ofenergy-saving measures across all production and operational processes.

Management Measures

Case Study: Energy-Saving Training on Compressed Air in Pressure Pipelines

?????? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

Indicators and ObjectivesIn light of actual production and operational conditions and industry energy-saving standards, and considering the types,consumption volumes, and energy-saving potential of energy used by each department, Solex decomposes targets intoenergy indicators for each energy-using unit and conducts monthly summaries and statistical analysis of completionprogress to support the successful achievement of annual energy-saving targets.

???? Energy Management Targets

AnnualAchievement Status

Key Performance IndicatorsUnit????Total Energy ConsumptionEnergy Consumption IntensityNatural GasGasolineDieselTotal Purchased Electricity (Domestic)Total Purchased Electricity (Vietnam)Total Purchased HeatPhotovoltaic power capacityClean energy consumptionRenewable energy consumptionNon-Renewable Energy ConsumptionTotal Direct Energy ConsumptionTotal Indirect Energy Consumption

tcetce/RMB ??,??? revenue??,??? m3LitersLiterskWhkWhGJkWhtcetcetcetcetce

??,???.???.????.????,???.????,???.????,???,????,???,?????,???.???,???,???.???,???.???,???.???,???.?????.???,???.??

Energy Conservation and Emission Reduction Practices

To steadily advance energy conservation and consumption reduction, the Company formulates annualenergy management plans and conducts full-cycle tracking and evaluation of implementation progress andenergy-saving bene?ts. In ????, the Company implemented a total of ?? energy-saving initiatives, and itssubsidiary Zhangzhou Solex completed ?? initiatives, focusing on the construction of intelligent energymanagement systems, clean energy projects, energy-saving transformation plans, and replacement of agingequipment, systematically promoting optimization of the energy consumption structure and improvementof energy e?ciency.

Intelligent Energy Management System

AchievedAchieved

AchievedAchievedAchievedAchievedAchievedAchievedAchieved

??

Comprehensive energy consumption per RMB ??,??? processing fee in the Environ-mental Protection Department decreased by ?.??%Comprehensive energy consumption per RMB ??,??? processing fee in the PMEQuality Department decreased by ??.??%

Comprehensive energy consumption per RMB ??,??? processing fee in the Miscella-neous Unit decreased by ?%

Comprehensive energy consumption per RMB ??,??? processing fee for metalpolishing decreased by ?%Comprehensive energy consumption per RMB ??,??? processing fee for castingdecreased by ?%Comprehensive energy consumption per RMB ??,??? processing fee for machiningdecreased by ?%Comprehensive energy consumption per RMB ??,??? processing fee in surfacetreatment workshop ? decreased by ??%Comprehensive energy consumption per RMB ??,??? processing fee for showerassembly decreased by ?%Comprehensive energy consumption per RMB ??,??? processing fee for basinassembly decreased by ?%

???? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

Case Study: Zhangzhou Solex Photovoltaic Expansion ProjectCase Study: Energy-Saving Transformation of Ovens for Electroplating

Line ProductsUnder the guidance of national strategy, Zhangzhou Solex, based on its existingrooftop photovoltaic construction, launched a photovoltaic expansion project,improving existing rooftop photovoltaics and parking lot facilities, increasinginstalled photovoltaic capacity by ?.? MWp, adding ??? parking spaces and ?charging piles, and increasing power generation by ??%. After o?cial grid connec-tion, the total installed photovoltaic capacity reached ?? MWp, with annual powergeneration of approximately ?? million kWh, reducing carbon dioxide emissionsby ?,??? tons. The project integrates rooftop power stations and parking lotphotovoltaic charging integrated parking spaces, marking a critical step towardthe goal of a "zero-carbon factory."

The ovens for electroplating line products at Solex originally used steam heating,with daily steam consumption of ? tons for two production lines combined. Theywere retro?tted to air energy heating, improving heating e?ciency. Recoveredcold air can also be used simultaneously for summer workshop cooling and acidcopper refrigeration needs. This saves ?,??? tons of steam annually. Calculated atRMB ??? per ton, the annual savings amount to ??.??(in RMB ??,???), achievingdual bene?ts of cost reduction, e?ciency enhancement, and green production.

Panoramic View of Zhangzhou Solex Photovoltaics

?????? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

To strengthen water management and improve water use e?ciency, Solex follows the man-agement principles of planned water use, intelligent control, and scienti?c water conserva-tion. It has formulated the Water Use Management System, under which the Energy Sectioncoordinates overall water management, formulates planned water use schemes, and coordi-nates departments to implement water management requirements. The Engineering Sectionis responsible for overall operation and maintenance of the intelligent water managementsystem, and water-using departments are responsible for water resource management withintheir respective jurisdictions.

Water resource management

An intelligent water meter ledger has been established. Combined with real-time data collected byintelligent water meters, water usage of each department is statistically analyzed, and plannedwater use schemes are dynamically adjusted based on actual usage to ensure rationality ande?ectiveness.Regular water-saving inspections are conducted. Water-use areas such as restrooms, productionworkshops, and o?ce areas are inspected for leakage. Any damaged equipment or leakage isreported promptly for repair arrangements.The Energy Department regularly organizes water balance tests, which are inspected andapproved by relevant government departments to obtain water balance test reports. Recti?ca-tions or optimizations are implemented in a timely manner according to report recommenda-tions.Water-saving devices are promoted and adopted. Appliances that do not meet water-savingstandards are discontinued. In new construction, reconstruction, and expansion projects,water-saving factors are prioritized, and water-saving processes and equipment are adopted.Regular water use training and water-saving activities are conducted to enhance water-savingawareness among all employees.

Case Study: Reuse of Assembly Water

In Workshop ?#-? of the subsidiary Zhangzhou Solex, water used for product functional testing in the assemblyworkshop is directly discharged to the sewage treatment station. After simple treatment to meet standards, it isused for landscaping and cleaning within the park. The average monthly assembly water consumption is ??? tons,reaching up to ??? tons in peak months. After implementation of assembly water reuse, annual water savings areexpected to reach ?,??? tons, saving RMB ??,???, signi?cantly improving water resource recycling rates.

Key Performance IndicatorsUnit????Total Freshwater ConsumptionFresh water consumptionTotal Water ConsumptionWater Consumption IntensityRecycled water consumption

tontontontons/RMB ??,??? revenueton

???,??????,??????,????.????,???

?????? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

WaterConservationMeasures

The Company strictly complies with the Circular Economy PromotionLaw of the People's Republic of China and other regulations. It hasformulated the Rules on the Use of Returnable Items and Early Warn-ing Mechanism Management Measures, under which the returnableitem administrator is responsible for procurement applications,outbound issuance operations, depreciation, and statement prepa-ration, ensuring normal supply of turnover materials to internalfactories and external suppliers.

Material Management

Expanded PolystyreneLithium Battery Warehouse

Environmentally friendly materials with non-plasticizing and degradable characteristics are prioritized for packagingand other materials to reduce the use of toxic and harmful substances.When storing hazardous chemicals such as lithium batteries, measures such as temperature and humidity control,explosion-proof electrical facilities, distance from ?re and heat sources, and anti-static protection are implemented.Fire?ghting facilities are equipped, and materials are stored in designated zones according to status.By optimizing product packaging design, the amount of packaging materials used is reduced, thereby reducingresource consumption and waste generation.Material recyclability is advocated, materials such as sealing frames are recycled and reused, and suppliers areencouraged to recycle and reuse cartons, pallets, plastic blister trays, and other returnable items.

GreenMaterialsMaterialStoragePackagingReductionRecycling

?????? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

Each year, the Company entrusts quali?ed third-party testing institutions through theEnvironmental Management Center to conduct environmental monitoring of pollut-ants such as wastewater generated during production, boundary noise, and exhaustgas. During the Reporting Period, monitoring was conducted at monitoring pointsincluding the total wastewater discharge outlet, exhaust gas outlet of the polishingworkshop, and exhaust gas outlet of the injection molding workshop. All monitoringresults complied with national and local emission standards.For exhaust gas and dust generated in electroplating, painting, injection molding, andother processes, the Company has con?gured corresponding exhaust gas treatmentequipment and technologies, and formulated the Operating Instruction for ExhaustGas Treatment Facilities to provide professional technical guidance for standardizedoperation, ensuring stable facility operation and compliant emissions. Meanwhile, thesubsidiary Bestter has formulated the Soil, Water, and Air Pollution Prevention andControl Management Measures. The Environmental Management Center and produc-tion workshops jointly manage dust and other exhaust gases and clarify relevantprocedures for air pollution control. In addition, the Company and its subsidiariesconduct special exhaust gas treatment training from time to time to continuouslydeepen employees' understanding and mastery of exhaust gas characteristics andtreatment processes.

Waste Gas Management

Pollutant Emissions

Key Performance IndicatorsUnit????Waste Gas EmissionsNitrogen Oxides (NOX) EmissionsSulfur Oxides (SOX) EmissionsHydrogen chlorideVolatile organic compound (VOC)Sulfuric acid mistParticulate matter (PM) emissions

??,??? m3tontontontontonton

???,???.??

?.???.???.???.???.????.??

Case Study: ODS TrainingOn June ??, ????, Zhangzhou Solex organized ODS training, explaining the de?nition and hazardsof ODS, professionally interpreting relevant regulations and standards, and analyzing examples tohelp participants master ODS-related knowledge and control requirements. A total of ?? employ-ees participated in the training.

ODS Training

Dust

Install dust treatment systems, and use cyclonedust removal, water spray dust removal, and pulsedust removal methods to treat dustInstall exhaust systems to collect acidic exhaustgases, which are then treated by acid mist scrubbersand discharged through the exhaust stack

AcidicExhaustGas

Install puri?cation equipment, and use watercurtain absorption, water spray, catalytic combus-tion, and activated carbon adsorption processes totreat organic exhaust gasesOrganicExhaustGas

Electroplating ExhaustGas Treatment Facilities

Spray Painting ExhaustGas Treatment Facilities

Injection MoldingExhaust Gas TreatmentFacilities

?????? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

The Company strictly implements wastewater treatment with classi?ed control andquality-based treatment to ensure compliant discharge of production and domesticwastewater, and utilizes a reclaimed water reuse system for water conservationwithin the park. In ????, the Company reused ??,??? tons of wastewater andachieved a wastewater recycling rate of ??%. The Company requires sewage treat-ment operators to strictly follow operating instructions, monitor all wastewatertreatment processes throughout, promptly report abnormalities, and achieve fulltraceability and control of wastewater treatment processes.The subsidiary Zhangzhou Solex has formulated the Sewage Treatment Center Oper-ation Management Measures. Wastewater treatment adopts a "chemical precipita-tion + hydrolysis acidi?cation" process, equipped with online monitoring facilitiesconnected to government departments to monitor wastewater discharge data in realtime and ensure stable compliant discharge through dynamic supervision.

Wastewater Management

Adopt biochemical treatment technology before dischargeAdopt chemical precipitation and anaerobic + aerobic treatmenttechnologies before dischargeAdopt reclaimed water reuse measures combining membraneseparation and ion exchange methods, relying on an automatedreclaimed water reuse system to treat park wastewater, with areuse rate exceeding ??%, mainly used for production linecleaning and partially for workshop chemical preparation

Domesticwastewater

Park Wastewater Treatment Measures

IndustrialwastewaterReuse ofreclaimed water

Key Performance IndicatorsUnit????Wastewater DischargesWastewater Treatment VolumeWastewater Discharge IntensityWastewater reuse volumeWastewater reuse rateChemical oxygen demand (COD)Five-day biochemical oxygen demand (BOD?)Suspended solidsAmmonia nitrogen (NH?-N)Total phosphorus (P)Animal and plant oils

??,??? m3tontons/RMB ??,??? revenueton%tontontontontonton

??.?????,????.??????,???????.???.???.???.???.???.??

?????? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

Solex strictly complies with the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by SolidWaste, regularly conducts special waste training, and has formulated the Solid Waste Management Measures and the Solex HazardousWaste Warehouse Management System. The Environmental Management Center and the Administration Department are mainly responsi-ble for supervising waste treatment and coordinating with external parties. Management requirements for classi?cation, collection,storage, and disposal of solid waste are clari?ed. When new production activities occur, the Environmental Management Committeere-evaluates or revises the Detailed List of Solid Waste Discharge to improve waste utilization rates and reduce waste generation.

Waste Management

Case Study:

Standardized Solid Waste Management TrainingOn March ??, ????, the Company's Environmental ManagementCenter organized special training on standardized solid wastemanagement. A total of ?? environmental o?cers from variousdepartments and employees in hazardous waste management-re-lated positions participated. The training adopted a "lecture + quiz"model, systematically teaching basic knowledge of solid wastemanagement and e?ectively enhancing participants' complianceawareness and operational capabilities in solid waste management.

Key PerformanceIndicators

Unit????

tontontontontonton%

?,???.???,???.???,???.???,???.???,???.???,???.??

???

Waste

Hazardous

waste

Generalwaste

Domesticwaste

Domestic waste

Main wastesMain disposal measuresWaste mineral oil,paint waste, wasteorganic solvents,waste emulsi?edliquids, laboratorywaste liquid, surfacetreatment waste,and other wastes

Waste cardboard,waste sand, scrapmetal parts, wastewood, etc.

·Are uniformly delivered todesignated hazardous wastewarehouses and entrustedto quali?ed institutions fordisposal;·It is prohibited to arbitrarilydiscard, incinerate, or buryhazardous waste on site,within the park, or outsidethe Company.·Are entrusted to quali?ed

external disposal vendors;·It is prohibited to burn orbury waste arbitrarily onsite or within or outside thepark.·Handed over to the

environmental health

management department

for uni?ed processing.

??

Quantity of wastegeneratedQuantity of hazardouswaste generatedQuantity of non-hazard-ous waste generatedQuantity of wastedisposed ofQuantity of hazardouswaste disposal ofQuantity of non-hazard-ous waste disposed ofWaste disposal compli-ance rate

???? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

Standardized Solid Waste Management Training

Solex actively carries out prevention and control of noise, soil, and other pollution.The Company has installed noise and vibration reduction equipment and adoptednoise reduction technologies such as double-layer soundproof glass, construction ofsoundproof rooms, and factory sound insulation to ensure that noise does notexceed the standards stipulated in the Emission Standard for Industrial EnterprisesNoise at Bounda. Its subsidiary Bestter has actively improved its noise pollutionprevention and control management system and formulated the Noise PollutionControl Management Measures, clarifying noise control procedures and providinginstitutional guarantees for reducing noise impact and improving the workingenvironment.

Green o?ce practices represent a critical scenario for enterprises to implement ESG principles and ful?llenvironmental responsibilities. With energy consumption control and resource recycling as its core focus, theCompany promotes low-carbon, intensive, and ecological o?ce operations through institutional regulationand full employee participation, continuously reducing operational carbon emissions and laying a solid foun-dation for achieving carbon peaking and carbon neutrality goals.

Meanwhile, the Company has formulated the Soil Environment Management Systemto standardize daily supervision methods and content, conduct routine visualinspections of soil protection facilities, road anti-seepage projects, and potentiallinear pollution hazards, and prevent potential pollution risks.

Management of Other Pollutants

Green O?ce

Noise ManagementSoil Management

·Noise-related departments strictlyadhere to operating procedures duringequipment operation, eliminating noiseintensi?cation caused by improperhandling;·Equipment is subject to regular mainte-nance and servicing;·Where construction or renovationactivities within the factory generateexcessive noise, work must be immedi-ately suspended and may only resumeafter e?ective noise insulation measuresare implemented;·Construction activities during nighttime

and rest periods are avoided.

·Workshop ?ooring is designed to

prevent liquid in?ltration;·Equipment and machinery in

operation are equipped with

impermeable collection and

containment facilities;·For bulk liquid storage, bund walls

are installed in tank areas, with

impermeable ground treatment and

regular inspections conducted;·At loading and unloading points,

leak-proof pumps are used to transfer

bulk liquids, inlet and outlet pipelines

are not exposed, and over?ow safety

devices consist of impermeable

containers.

Implementation of Green Operation

Actions for Green O?ce

Electricity conservation is advocated through the use of LED energy-saving lamps,and lighting in corridors, balconies, stairways, and similar areas has been replacedwith sensor-activated lights.

Double-sided printing and secondary-use paper printing are encouraged toconserve paper, with gradual implementation of paperless o?ce practices.Automatic faucets are widely adopted to reduce water waste caused by taps beingleft running, thereby conserving water resources.

Air conditioning temperature is set at ??°C; public areas such as meeting rooms areequipped with timed power-o? sockets and sensor switches to e?ectively preventwaste caused by appliances being left on after use.

Waste classi?cation posters are displayed on environmental bulletin boards; wasteis sorted and recycled accordingly, and used dry batteries are uniformly collectedand handed over to quali?ed entities for disposal.

Timed Power-O? Socket

Water-Saving Faucet

Garbage Sorting Posters

?????? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

The Company organizes diverse environmental awareness initiatives, integrating knowledge of energy conservation,waste reduction, garbage classi?cation, and resource recycling into employees' daily work and life through environ-mental knowledge quizzes, interactive games, and themed on-site presentations, thereby encouraging proactiveadoption of green o?ce practices and low-carbon commuting behaviors.

Solex strictly complies with the Regulations on the Administration of Environmen-tal Protection for Construction Projects and the United Nations Convention onBiological Diversity, fully incorporating ecosystem and biodiversity protectioninto the lifecycle management of renovation and expansion projects, andcontinuously promoting coordinated development between project construc-tion and ecological conservation.

Environmental Protection Activities

Case Study: World Environment Day Themed Activity

On June ?, ????, in response to the Ministry of Ecology and Environment's World Environment Day theme of "Beauti-ful China—I Am a Pioneer," Solex and its subsidiary Zhangzhou Solex organized an environmental-themed eventwithin the industrial park. Through activities such as an environmental signature wall and eco-themed games, theCompany promoted environmental and energy-saving knowledge and o?ered prizes to stimulate employee partici-pation, e?ectively deepening and disseminating the corporate culture of environmental protection.

Protection of Ecosystem and Biodiversity

Prior to Project Implementation

Environmental impact assessments are conducted to compre-hensively evaluate the project's potential impacts on surround-ing ecosystems and biodiversity.

During Project Construction

Comprehensive environmental protection technical measuresare implemented to ensure that all pollutant emissions complywith national and local standards.

Upon Project CompletionEnvironmental acceptance is strictly carried out in accordancewith regulations to prevent adverse impacts on ecosystems andbiodiversity, thereby e?ectively safeguarding regional ecologi-cal balance.

?????? Environmental, Social, and Governance (ESG) ReportNurturing the Ecosystem and Advancing Sustainably Through Green Development

Environment Day Event

Empowering Industryand Creating Enduring ValueOur PhilosophySolex remains customer-centric, adheres to innovation-drivendevelopment, and focuses on the research, development, andmanufacturing of robot organizational systems, healthcaresoftware and hardware, and intelligent kitchen and bathroomproducts. At every stage from procurement to product delivery,we rigorously enforce high standards of quality and reliabilitycontrol, and embed data security and user privacy protectionas core product values and fundamental responsibilities.

2025 Environmental, Social, and Governance (ESG) Report

Our ActionsInnovation-drivenProduct and Service Safety and QualityInformation Security and Customer Privacy ProtectionSupplier ManagementSDGs

Innovation-drivenGovernance

Upholding the business philosophy of "innovation, design, manufacture," the Company has established systems such as the NewProduct Development Control Procedures and the Software Lifecycle Procedure, and comprehensively standardized the processes ofnew product development and innovative R&D in accordance with the New Technology Development Process and New Project Devel-opment Process, thereby controlling design quality and delivery timelines at the source.Guided by market demand, the Company's R&D activities are overseen by the General Manager as the highest decision-maker andadministrator, who coordinates overall R&D management. The IDM R&D Center and the Robotics R&D Center serve as core R&Ddepartments, undertaking technological development and product innovation in their respective ?elds; the Intellectual PropertyDepartment operates as an independent functional support unit, providing professional support for the protection of R&D achieve-ments and compliant operations. In addition, the Company has established a uni?ed database encompassing the latest global prod-ucts and designs, providing precise guidance for new product R&D directions.

SolexGeneral Manager

IDM R&D CenterIntellectual Property DepartmentRobotics R&D Center

Intelligent Kitchen andBathroom R&D

AIoT R&D Center

Healthcare Software and

Hardware R&D

OrganizationalSystems R&D

HardwareProduct R&D

Shared Module R&D

R&D Organizational Structure Diagram

R&D Personnel Information

Under ?? (exclusive) years old?? (inclusive) to ?? (exclusive) years old?? (inclusive) to ?? (exclusive) years old?? (inclusive) to ?? (exclusive) years old?? years old or above

Master’s Degree or AboveBachelor’s DegreeCollegeHigh school or below

MaleFemale

By AcademicQuali?cation

??%??%

??%

?%

By Age

＜?%?%??%

??%

??%

By Gender

??%

??%

Total R&D Team Members

persons

???Proportion ofTotal Employees

%??.??

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

TechnologyR&D risk

LowMediumShort to medium termMediumOperationsNewly developed products or technologies may fail tomeet market demand or industry trends due todirectional deviations, and R&D samples may notsatisfy customer requirements, resulting in wastedR&D resources

At the project initiation stage for new product develop-ment, customer requirements are repeatedly validated,and submission of both market and technical feasibilityanalyses is mandated to ensure that R&D projects are fullysubstantiated in both commercial and technical termsIncreasedoperating costs

Market andCompetitionRisks

MediumHighMedium and long-termHigh

Operations,downstreamNew businesses face multiple challenges, includingrapid changes in market demand, the in?ux of strongnew competitors, and imitation of innovativeproducts, which may lead to business growth fallingshort of expectations

Proactively conduct research and analysis on macromarkets, competitive dynamics, and industry policies;continuously monitor demand changes and trend move-ments; and actively integrate into the industry ecosystemto obtain critical information and resources, therebysupporting ?exible business adjustments and riskresponseIncreasedoperating costs

Opportunitiesin the RoboticsIndustry

HighHighMedium and long-termHigh

Operations,downstreamGrowing market demand for service robots and corecomponents provides a pathway for technologicalupgrading and market expansion of the Company'sintelligent health hardware business

Focus on breakthroughs in core technologies and collabo-rate with leading industry companies to jointly advanceproduct innovation and industrialization in key compo-nents and speci?c application scenariosRevenue Growth

Marketexpansionopportunities

MediumHighMedium and long-termHighDownstreamGlobal upgrading of health consumption and rapidtechnological iteration expand the market space forintelligent health hardware, providing growth momen-tum for the Company's export business

Integrate domestic and international innovation resourc-es to achieve technological convergence and productupgrading, enhance the core competitiveness of productsand services, further strengthen global competitiveness,and explore high-value market regionsRevenue Growth

Low-CarbonTechnologyOpportunities

HighMediumMid-termHighDownstreamThe Company has successfully developed innovativelow-carbon processes that directly reduce carbonemissions and carbon costs in production, aligningwith the "dual carbon" policy trend while conferringgreen competitive advantages to products

Systematically assess the current carbon emission statusof existing processes, accurately identify key emissionreduction processes, introduce advanced low-carbontechnologies, and conduct small-scale pilot validations tolay the foundation for large-scale applicationRevenue Growth

Type of Risk/Opportunity

Description of Risk/Opportunity

Probability ofOccurrence

ImpactMagnitude

ImpactTimeframe

Value ChainLinks of Impact

PriorityRanking

PotentialFinancial Impact

Response Measures

Strategy

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

Impact, Risk and Opportunity ManagementMetrics and TargetsDuring the advancement of innovative R&D, the Companyproactively conducts forward-looking risk assessment andopportunity identi?cation, relying on the Risk and OppounityIdentication and Evaluation Form to carry out identi?cation andevaluation at each project stage, e?ectively managing uncer-tainties in the R&D process, ensuring the smooth progression ofR&D projects, and supporting steady innovation and continuousbreakthroughs in a dynamic competitive environment.

The Company is anchored in intelligent, health-oriented, and green development directions, establishing R&D and innovation objec-tives with a forward-looking perspective on market demand and industry trends, continuously increasing R&D investment andstrengthening independent innovation in core technologies.In the robotics business, the Company focuses on core technological breakthroughs in collaborative organizational systems for logis-tics service robots and medical/elderly care service robots. It aims to make advancements in key technologies such as scene percep-tion, autonomous mobility, multi-robot collaboration, and human-machine interaction. The Company continuously optimizesscenario-based solutions for the ToB markets, including security, cleaning, logistics and delivery, reception and guided tours, andcustomer service, as well as for the wellness and elderly care market, including mobility assistance, and nursing and rehabilitation.This ongoing e?ort is dedicated to enhancing the stability, adaptability, and intelligence level of the robotic systems.In the healthcare software and hardware business, the Company concentrates on sleep health, skin and hair health, oral health, andbeverage health categories, advancing technological R&D and product iteration, actively deploying large models for smart healthhome applications, and constructing an intelligent and diversi?ed ecosystem of health software and hardware; during the ReportingPeriod, the Company successfully obtained MDSAP international medical device quality system certi?cation from ?ve countries andcontinued to improve its ISO????? medical device quality management system, thereby laying a solid compliance foundation for theglobal expansion of health products.In the intelligent kitchen and bathroom business, the Company focuses on innovation in intelligent, health-oriented, and green prod-ucts, promoting iterative upgrades of water-saving showers, electronic shower systems, intelligent toilets, and other products, andstrengthening core capabilities in water-saving technologies, intelligent sensing, and multi-point precise control.Meanwhile, the Company deepens the sharing and reuse of AIoT and large AI model technologies across business segments, provid-ing strong support for multi-category and multi-scenario collaborative expansion, steadily promoting the commercialization of R&Dachievements, and e?ectively unlocking the value of technological innovation. During the Reporting Period, the number of patentapplications increased steadily, and the patent commercialization rate remained at a high level.

R&D Innovation Risk and Opportunity Management Process

RiskIdenti?cation

At each stage of new technology and newproduct development, potential risk factors areproactively and comprehensively identi?ed,with regular project reviews conducted toensure no signi?cant omissions.For identi?ed risks, comprehensive assessmentsare conducted based on likelihood of occur-rence and degree of impact, thereby determin-ing risk levels and response priorities.

RiskAssessment

Based on risk levels, corresponding preventiveand responsive measures are formulated andimplemented to e?ectively control risks andmitigate their actual impact on projects.

RiskManagement

Continuous tracking and monitoring of riskresponse measures are carried out, with dynam-ic updates to risk status and managementstrategies to ensure e?ective operation of therisk management process.

Risktracking

Key PerformanceDuring the Reporting Period, the Company's R&D investment:

??,???.?? (in RMB ??,???),percentage of R&D investment in main operating income: ?.??%.

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

Innovation-driven Measures

To stimulate technological innovation vitality and encourageemployee invention and creation, the Company has formulateddocuments such as the R&D Incentive System and the Measuresfor Rewarding Scientic Research Achievements. For di?erenttypes of rewards, achievements are evaluated and graded basedon dimensions such as innovativeness and degree of di?culty,with reward coe?cients determined accordingly, thereby e?ec-tively mobilizing employees' enthusiasm for technologicalinnovation through substantive incentives.

Incentives for Innovative R&D

Reward types

Patent rewardProject rewardProposal rewardTechnological innovation andtransformation rewardIntellectual propertyimplementation rewardScienti?c research achievementtransformation reward

The Company has established comprehensive R&D and innova-tion platforms at multiple levels and has obtained correspondingauthoritative quali?cations and recognitions. At the nationallevel, the Company has been recognized as a National EnterpriseTechnology Center, a National Industrial Design Center, and aNational Intellectual Property Demonstration Enterprise; at theprovincial and ministerial levels, it also holds important certi?ca-tions such as Engineering Technology Center, Enterprise Technol-ogy Center, and Industrial Design Center. In addition, the Compa-ny operates a nationally CNAS-accredited testing laboratory anda postdoctoral research workstation. These platforms collectivelyform comprehensive support across the entire innovationprocess, continuously consolidating the Company's technologi-cal leadership and innovation advantages within the industry.

Construction of Innovation Platform

Key PerformanceAs of the end of the Reporting Period,

? entities of the Company and its subsidiaries hadbeen recognized as High and New Technology Enterpris-es;? specialized and sophisticated SME has also beencultivated, all of which have received relevant munici-pal-level or higher recognitions.

Presentation of Innovation AchievementsThe Company deeply participates in the formulation of national and industry standards, particularly leading the development ofmultiple key standards in the kitchen and bathroom sector. Leveraging profound technological accumulation, the Company hassuccessfully translated practical experience into high-standard industry norms. Meanwhile, as an important industry participant,the Company actively engages in industry exchange activities, consolidating collective industry wisdom and jointly leading tech-nological upgrades and quality advancement within the sector. The two national standards in which the Company participated,namely GB/T ?????—???? General Technical Requirements for Kitchen and Sanitary Ware Fittings and GB/T ?????—???? QualityGrading of Consumer Products—Kitchen and Sanitary Ware Fittings, have been o?cially implemented.

Solex deeply understands users' core needs, with intelligent,health-oriented, and green development as its core R&D direc-tion. Adhering to collaborative innovation across the industrialchain and focusing on product quality, the Company breaksthrough the limitations of traditional products that merely meetbasic living needs, drives product upgrades through innovation,and is committed to creating healthy, environmentally friendly,and energy-e?cient lifestyle experiences for consumers. Duringthe Reporting Period, the Company received customer innova-tion awards, and the Aurora Photocatalytic Toothbrush andNimble Side-Spray Lift Rod won the ???? German iF DesignAward.

Participation in Standard Development

Technology-Enabled Health Products

Key Performance

Case Study: The Seventh Member Representative Congress of the China National Hardware AssociationIn December ????, the Company attended the Seventh Member Representative Congress of the China Nation-al Hardware Association. During the conference, Company representatives listened to reports and speecheson topics including industry development trends, technological innovation, and green transformation. Inrecognition of its contributions and in?uence in relevant ?elds, the Company was elected as a Vice ChairmanUnit of the Seventh Council at the conference. Through participation in this signi?cant industry event, theCompany further grasped policy orientations and cutting-edge developments, strengthened exchanges withindustry partners, and created favorable conditions for promoting supply chain collaborative innovation andsustainable development practices.

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

As of the end of the Reporting Period,the Company had participated in the formulation of ?? standards,including ?? national standards, ?? industry standards, ? group standards, and ? local standards.Among them, ? industry standards compiled by Solex during the Reporting Period remain under revision.

At the Delta ???? Supplier Conference,the Company receivedthe "New Product DevelopmentInnovation Award"

At the Blanco ???? Supplier Confer-ence, the Company receivedthe "Innovation Award"

The Company closely aligns with digital application deployment to advance core technology R&D, deeply cultivating key multimodalalgorithm technologies for home health, and is committed to providing comprehensive solutions for health monitoring and manage-ment in household environments. The technological core encompasses three dimensions, multimodal perception, few-shot learning,and lightweight optimization, which synergistically construct an e?cient, intelligent, and cost-e?ective AIoT health solution: Multi-modal perception ensures comprehensive and integrated data sources; few-shot learning enables precise prediction under condi-tions of limited labeled data; and lightweight optimization guarantees low power consumption and e?cient operation of algorithmson terminal devices, thereby transforming cutting-edge algorithms into stable and reliable product experiences. This technology has

Case Study: Adaptive Water SprayThis adaptive water spray product adopts advanced water-saving technology to ensure that, under varying waterpressure environments, the output ?ow remains precisely and stably within a preset water-saving range. It notonly meets China's highest Level ? water e?ciency standard, but its water impact force and spray coverage alsocomply with international WaterSense certi?cation standards. The core spray technology achieves dynamic adap-tation to water pressure: Under low pressure, the spray area and water output are small while maintaining strongimpact; under high pressure, the spray area increases and the impact softens, e?ectively addressing the commonissues of insu?cient impact in low-pressure regions and excessive impact in high-pressure regions, thereby deliv-ering a stable and superior shower experience across diverse environments.

Case Study: Aurora Photocatalytic Toothbrush

Digital Core Technologies

Case Study: Intelligent Health Shower—IntelligentShowerheadThe intelligent showerhead under the Intelligent Health ShowerUC category is equipped with millimeter-wave radar to monitorhuman position and movement status. Relying on multimodalperception technology, it can detect in real time whether thehuman body is within an e?ective area; combined withgyroscope data, the system intelligently determines whether theuser has left the shower area and automatically adjusts water?ow to achieve water-saving e?ects. At the same time, leverag-ing few-shot learning technology, the system requires only asmall amount of labeled data to accurately recognize userbehavior, further optimizing the responsiveness and e?ciencyof water ?ow adjustment. In addition, lightweight optimizationtechnologies are applied at the technical end to compress and?ne-tune models, ensuring that devices can achieve e?cientand sustained operation under low-power conditions.

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

The Aurora Photocatalytic Toothbrush is a new product developed by the Company to enhance oral health. Theproduct embeds photocatalytic particles within the bristles, which, under strong ultraviolet light catalysis, gener-ate free radicals that disrupt bacterial cell structures to achieve deep sterilization, e?ectively reducing theincidence of oral diseases. Its breakthrough photocatalytic technology overturns traditional ultrasonic andmechanical vibration cleaning modes, constructing an innovative tooth cleaning and protection system thatensures e?ective cleaning while providing users with an e?cient and comfortable brushing experience, therebygenuinely enhancing the quality and satisfaction of oral care.

been successfully applied to multiple products, including intelli-gent water leakage monitors, intelligent showers, and visualice-point hair removal devices.

To standardize the Company's patent management, documentssuch as the Patent Management System and the IntellectualPropey Archives Management System have been formulatedand implemented, with the Intellectual Property Center assum-ing overall responsibility for the daily management of patents,trademarks, and other intellectual property rights. Meanwhile,the Company has established annual patent performanceassessment and evaluation indicators, incorporating them intodepartmental and responsible persons' performance appraisalsto strengthen overall capabilities in intellectual propertycreation, utilization, protection, and management. In recogni-tion of its outstanding practices in the ?eld of intellectual prop-erty, the Company has been accredited as both a "National Intel-lectual Property Demonstration Enterprise" and a "Xiamen Intel-lectual Property Demonstration Enterprise."

The Company places strong emphasis on protecting its ownintellectual property from infringement while strictly avoidingthe risk of infringing upon the intellectual property rights ofothers. A patent information database has been established andthe Operational Guidelines for External Patent Databases have

The Company is always driven by innovation and grounded in responsibility. In technology R&Dand application, we strictly comply with national laws and regulations as well as industry stan-dards, and resolutely prohibit any scienti?c research activities that violate ethical norms. In thefuture, the Company will continue to optimize its internal management mechanisms, adhere to asustainable innovation path, and is committed to promoting the healthy and orderly developmentof the industry.

Intellectual Property Protection

Top ??Intellectual Property Enterprises in Xiamen ????(Ranked ?th)

Intellectual Property Training

Science and Technology Ethics

??

Key PerformanceDuring the Reporting Period,the Company added??? new patents and ?led ??? patent applications.As of the end of the Reporting Period,the number of valid patents per RMB one million of revenue was?.?? per RMB ? million; the cumulative number of autho-rized patents reached ?,???, including ??? invention patents, ??? utility model patents,and ??? design patents;the cumulative number of software copyrights reached ??, with ?.?? software copyrights per RMB ? million of revenue;and the cumulative number of trademarks reached ??.

???? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

been formulated to enhance dynamic monitoring of patent risks; during the advancement of R&D projects, intellectual property regis-tration, application, and ?ling are carried out concurrently. At the same time, through departmental collaboration, engagement ofexternal experts, and organization of intellectual property training sessions, the Company systematically advances intellectual prop-erty due diligence and awareness enhancement, continuously strengthening full-process intellectual property management capabili-ties.

The Company adheres to the policy of "Customer-Centric, Continuous Improvement; TechnologyInnovation, Quality Primacy," and has formulated systems such as the Incoming Material SamplingManagement Specications, the Inspection and Test Control Procedures, and the Production Man-agement Control Procedures. Each business division is equipped with an independent quality man-agement organization responsible for quality control throughout the entire product lifecycle. As ofthe end of the Reporting Period, Solex, Zhangzhou Solex, Solex Vietnam, and Bestter Company hadall obtained quality management system certi?cations.

GovernanceProduct and Service Safety and Quality

Quality Management System Certi?cation Certi?cate (Solex as an Example)

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

ProductionPlanning andDelivery Risks

MediumHighMid-termMedium

Operations,downstreamUnreasonable planning or inaccurate capacity assess-ment may result in failure to complete productiontasks on time and delayed product delivery, severelya?ecting the Company's image

Based on actual production capacity and product charac-teristics, production plans are scienti?cally formulated;material control personnel are arranged to follow up onthe implementation of production plansIncreasedoperating costs

ProductionProcess andQualityControl Risks

LowMediumLong-termMediumOperations,downstreamBased on actual production capacity and productcharacteristics, production plans are scienti?callyformulated; material control personnel are arranged tofollow up on the implementation of production plans.This may cause batch quality defects, customercomplaints, and brand reputation damage

Strict incoming material sampling inspection plans areformulated and implemented, with designated areas forinspection; identi?cation, isolation, and disposal process-es for non-conforming products are clari?ed, anddeadlines for corrective action closure are establishedIncreasedoperating costs

Capacity andInventoryRisks

LowMediumShort-termMediumOperationsProduction ramp-up at the Vietnam base may fall shortof expectations, and insu?cient coordination betweennew and existing capacities may lead to inventorybacklog or delayed order delivery

The base releases capacity in stages driven by orders,?exibly reallocates orders among domestic and overseasbases; establishes an omni-channel inventory sharingsystem, sets turnover warning thresholds, optimizesinventory through promotions and reallocations; andregularly clears obsolete inventory to reduce capitaloccupationDecreasedoperating income

Green ProductInnovationOpportunities

MediumMediumLong-termHighOperations,downstreamIn response to global environmental trends, theCompany develops and uses recyclable materials andcreates low-water-consumption, long-life water-savingintelligent sanitary products to meet the upgradedmarket demand for sustainable consumer goods

Increase R&D investment in water-saving and environ-mental protection technologies, actively apply for greenproduct certi?cations, and explore environmentallyfriendly materials and sustainable product designAugmentedoperating income

IntelligentManufacturingOpportunities

MediumHighMid-termMediumOperationsBy promoting intelligent upgrades of productionprocesses, operational e?ciency and product qualitystability are enhanced

Establish a digital quality control platform and optimizethe entire production processReducedoperating costs

Type of Risk/Opportunity

Description of Risk/Opportunity

Probability ofOccurrence

ImpactMagnitude

ImpactTimeframe

Value ChainLinks of Impact

PriorityRanking

PotentialFinancial Impact

Response Measures

Strategy

The Company conducts its operations in accordance with theRisk and Oppounity Control Procedures and the Risk Manage-ment Control Procedures, clearly de?ning speci?c operationalrequirements for risk avoidance, mitigation, and acceptance. Inthis process, the Quality Department is responsible for organiz-ing the identi?cation and evaluation of internal and externalenvironmental factors, leading the formulation of responseplans, and supervising their implementation.

Impact, Risk and Opportunity Management

The Company places great importance on the dynamic manage-ment of quality objectives. Each subsidiary and businessdivision formulates and implements annual quality objectives inaccordance with speci?c business realities, ensuring that qualityrequirements are fully integrated into all aspects of daily opera-tions, thereby continuously enhancing overall quality perfor-mance.

Metrics and Targets

To continuously strengthen quality control, the Company hasestablished systems such as the Incoming Material Inspectionand Testing Control Procedures and the Process Inspection andTesting Control Procedures, standardizing key stages from rawmaterials to ?nished products to ensure stable and controlledproduct quality throughout the process. Meanwhile, the Compa-ny attaches great importance to the management and mainte-nance of production equipment, formulating annual mainte-nance plans and re?ned servicing schemes, and conductingregular professional inspections and maintenance to ensuree?cient and stable equipment operation and orderly produc-tion processes. In addition, to strictly control ?nished productquality, the Company regularly conducts relevant quality testingon products and issues reports. Multiple products, includingshower faucets, toilet seats, and intelligent toilets, are tested instrict accordance with authoritative standards to comprehen-sively ensure stable and reliable product quality.

Whole-life-cycle Management of Products

AchievvementProduct and Service QualityObjectives in ????Monthly return loss rate ≤ ?.??%Customer complaint handlingtimeliness rate: ???%FOC ?nished product batchacceptance rate ≥ ??.?%Customer ?nished product batchacceptance rate ≥ ??.?%

Achieved

Achieved

Achieved

Achieved

Key Performance

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

During the Reporting Period,Number of product recalls: ?;Product percent of pass: ??.??%;Number of annual internal quality audits: ??;Number of times third-party agencies were engaged forsampling: ??.Risk and Opportunity Management Process

Risk andOpportunity

Planning

An assessment team is established to identifyand analyze risks and opportunities and compileassessment and analysis forms.

Risk andOpportunityAssessment

Risk coe?cients are calculated based on riskseverity and frequency of occurrence. When thecoe?cient is excessively high, avoidance ormitigation measures must be adopted to reducepotential harm.Response to

Risk andOpportunity

Corresponding measures are taken based onassessment results to reduce or eliminate risks.

Risk andOpportunity

Review

The Quality Department organizes at least onesystem review annually to verify e?ectivenessand generate a risk assessment report.

Quality Inspection Report

Quality Culture Management

Full Lifecycle Management ProcessInspectors verify incoming materials and conduct sampling inspec-tions according to the quality inspection plan. If the materialsprovided contain hazardous substances, it is required to ensurethat the received materials are accompanied by the supplier'sEnvironmental Declaration and have undergone third-partysampling and testing prior to inspection; warehouse personnelshall process materials within ?? hours, and in case of rejection,initiate a return order via the OA system to notify the supplier forreturn.

Incoming Material Inspection

After inspectors con?rm ?rst article inspection quali?cation,approval is reported to the team leader; operators must conductself-inspection and mutual inspection, identify and isolate defec-tive products, and patrol inspections focus on key and frequentlyabnormal processes.

Process Inspection

Inspectors conduct sampling according to standards and recordinspection results; if requirements are not met, a quality abnor-mality handling form is issued and rework is arranged.Final Inspection

The Company attaches great importance to consumer safety and rights and has established systems such as the Product Recall Work Instructionand the Product Recall Management System to ensure standardized and fully traceable product recall processes. For medical device productsexported to the United States, the Company has additionally formulated the Medical Device Recall Control Procedure to strengthen post-marketsafety supervision, ensure product traceability, and continuously enhance product quality assurance capabilities.

The Company actively embraces digital technologies and has established digital management systems such as the OA quality control moduleand rework process system to achieve real-time monitoring and data-based management of production progress and product quality. This notonly signi?cantly improves the precision and responsiveness of quality control but also provides reliable data support for process optimization,e?ectively enabling the Company to achieve dual advancement in e?ciency improvement and quality assurance.

To consolidate the foundation of product quality, the Compa-ny regularly organizes quality training and skills competitionseach year, reinforcing quality awareness among all employ-ees and honing professional practical capabilities throughdiverse approaches, jointly fostering a work atmosphere thatvalues quality and pursues excellence.

Sales personnel should clearly and speci?cally ?ll out the Product Recall Application Form, including customer names, product names,quantities, and the reason for recall;The sales manager organizes relevant departments and personnel to analyze the cause of the product recall for products withoutquality issues and provide handling suggestions;The Quality Control Department analyzes the defective products for their root cause, writes out handling suggestions, executes theNonconforming Product Control Procedure for non-conforming products, and ?lls out the Corrective and Preventive Action Repo;If the recalled product quantity is too large, the general manager should convene a management review meeting.

Product Recall Management Process

Product Recall Management

Digital Management

QC Seven Tools Training

JC/T???-????Testing Standard Training

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

To improve the customer service governance system, the Company has formulated normative documents such as the Feedback andComplaint Control Procedures and the Customer Complaint Handling Work Instructions, promoting cross-functional collaborationamong relevant departments to jointly ensure alignment between product quality and customer needs and comprehensivelyrespond to various customer demands. On this basis, the Company has also formulated the External Quality Issue Management Proce-dures to regulate the full-process handling of external quality issues such as shipment complaints, inspection complaints, and returns.Upon con?rmation of a customer complaint, the corresponding quality engineer from the CQS section of the Quality AssuranceDepartment is responsible for receiving, managing, and tracking returned products, implementing relevant corrective and preventivemeasures, and at the beginning of each month categorizing and summarizing customer complaints by product category, problemclassi?cation, and frequency, thereby promoting e?ective improvement measures by relevant departments to reduce repeat com-plaint rates and enhance customer satisfaction and product reliability.

Key Performance

Management of Customer Complaint

Customer service guarantee

Case Study: Customer Complaint Handling andSystematic Improvement CaseOn November ?, ????, a customerreported multiple pull rod fracturesin the drainage valve model??T????-???-??? purchased. TheCompany immediately establisheda cross-departmental team for

Business Information Receipt

Standardization

Preliminary Investigation by Quality AssuranceImplementation of Improvement Plan by Responsible UnitVeri?cation of Implementation E?ectiveness by Quality Assurance

Responsibility Determination by Quality AssuranceAnalysis and Improvement by Responsible Unit

Case Closure Filing/Customer ReplyCustomer Complaint Response Process (Simpli?ed)

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

Key PerformanceDuring the Reporting Period,Customer complaint rate:

?.??%;Customer complaint resolution rate: ???%

During the Reporting Period,Number of participants in quality training:

?,???;Total hours of quality training: ?,???.??;

Number of quality training sessions: ???.

investigation and con?rmed that the root cause was themixing of trial mold adjustment parts into normal productionmaterials; such parts su?ered from material shortage andinsu?cient strength due to unstable processes; the out?owcause was that pre-shipment full inspection failed to detectthe fracture phenomenon. The Company mandatorily isolat-ed and scrapped all mold adjustment parts and revised thePas Inspection Work Instruction to prevent recurrence ofsimilar issues at the institutional and procedural levels.

Customer Satisfaction

Customer Service TrainingResponsible Marketing

To understand customers' current and future expectationsregarding service quality, the Company has formulated theCustomer Satisfaction Suey Procedure. The GCM Depart-ment coordinates the annual satisfaction survey, systemati-cally collecting customer feedback on key dimensions such asproduct quality, service experience, and delivery timelinessthrough questionnaires, customer forums, and market visits,thereby further improving product quality and enhancingcustomer satisfaction.

The Company attaches great importance to the professionalcapability development of its customer service team andregards high-quality service as the key to earning customertrust and consolidating market position. To this end, theCompany continuously conducts specialized service trainingto enhance the professional competence and practical capa-bilities of service personnel. Through systematic training, theteam is able to more accurately understand customer needsand respond to customer requests, thereby continuouslyoptimizing service experience and laying a solid foundationfor long-term and stable customer relationships.

The Company strictly complies with the Adveising Law of the People's Republic of China and the Anti-Unfair Competition Lawof the People's Republic of China, and adheres to principles of integrity and transparency in marketing. On this basis, all productpromotional materials are subject to strict review to ensure authenticity and accuracy, ful?lling commitments to responsiblemarketing and eliminating any form of false or misleading information; regular professional training is organized for salespersonnel with emphasis on compliance marketing standards, enhancing the sales team's compliance capabilities; in addition,product performance and proper usage education is provided to customers to safeguard their right to information and reason-able use, thereby building an honest and compliant marketing ecosystem.

Key Performance

Sales Training

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

Key PerformanceDuring the Reporting Period,Customer satisfaction:

??.??%

During the Reporting Period,Total Number of Violations of Regulations and/or Voluntary Codes Concerning Marketing Communication (includingAdvertising, Promotion, and Sponsorship):

?.

To enhance information security and privacy management, theCompany follows the fundamental policy of "Active prevention,total employee involvement, ensuring the security of companyand customer data," and has formulated systems such as theInformation Security and Privacy Management Manual and theInformation Asset Management Rules. An Information SecurityManagement Committee has been established to coordinateoverall work, and each department is required to designate nomore than two information security specialists to implementmanagement responsibilities at di?erent levels. Focusing onproduction and operation, customer service, and daily manage-ment scenarios, the Company strengthens risk control to e?ec-tively prevent risks such as information system failures, dataloss, and leakage of sensitive information and privacy, avoidingbusiness interruptions and security incidents, and e?ectivelysafeguarding the security and integrity of operational data.During the Reporting Period, the Company achieved signi?cantresults in the construction of its information security manage-ment system, successfully obtaining ISO ????? InformationSecurity Management System Certi?cation and ISO ????? Priva-cy Information Management System Certi?cation. Based on acomprehensive control system, no data security or customerinformation leakage incidents occurred during the ReportingPeriod.

The Company has formulated the Information Security andPrivacy Risk Assessment Procedures, focusing on identifyingvarious risks to important information assets in terms of con?-dentiality, integrity, and availability. After each departmentcompletes the Information Asset and Risk Assessment Form andthe Privacy Risk Assessment Form, the Information Security Man-agement Committee consolidates, reviews, con?rms, andarchives them, and prepares the Information Security RiskAssessment Repo based on assessment results. The Companyupdates information assets and risk assessments annually,investigates potential new risks, evaluates the e?ectiveness ofexisting control measures, and supplements new control mea-sures as needed to achieve dynamic identi?cation of informa-tion security and privacy risks.

At the same time, the Company has established a systematicinformation security inspection and evaluation mechanism:

conducting security requirement analysis and review during theinformation system design stage to ensure compliance withsecurity principles; completing comprehensive security inspec-tions before system launch to eliminate vulnerabilities at thesource; and implementing regular security scans and assess-ments during operation and maintenance to identify andmitigate various information security risks. In addition, duringthe Reporting Period, the Company completed ? informationsecurity audit activities through a combination of internal auditsand external third-party audits, including ? internal audit and ?external audit.To address information security risks and safeguard the Compa-ny's information security management level, the Company hasformulated emergency response systems such as the Informa-tion Security Emergency Response Plan and the InformationSecurity Continuity Management Plan, clearly de?ning gradingstandards for information security incidents. Meanwhile,through organizing information security emergency drills thatsimulate sudden scenarios such as data breaches and cyberat-tacks, the Company tests the feasibility and operability of emer-gency plans, enhancing rapid response, e?cient handling, andbusiness continuity assurance capabilities in dealing with infor-mation security incidents, and minimizing losses and impactscaused by such incidents.

Risk Assessment

Emergency Response Plans

Information Security Management

Information Security Risk Management

Information Security andPrivacy Protection

Privacy Management

System Certi?cateInformation SecurityManagement System Certi?cate

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

To comprehensively safeguard the data security of the Company and its stakeholders and prevent unauthorized access to infor-mation, the Company has established a multi-layered and comprehensive information security protection system aimed at fullyenhancing information security management capabilities.

Boundary ?rewalls, core switches, Web application ?rewalls, and internet behavior management systems are deployed; network accessauthentication is implemented; security antivirus software is activated; security audit and logging systems are installed; and data protectionsystems are established.

Case Study: Information Security DrillDuring the Reporting Period, the Company organized a special tabletop drill training for SAP system disaster recovery. Through simula-tion of real failure scenarios, relevant teams jointly reviewed and con?rmed the disaster recovery standard operating procedures (SOP),personnel division of responsibilities, and step-by-step accountability, and evaluated and con?rmed the current Recovery Time Objec-tive (RTO) and Recovery Point Objective (RPO); this drill training e?ectively enhanced the coordination and process execution capabili-ties of the operation and system teams under emergency scenarios. Information Security Practices

Information Security Measures Implemented

Regular data backups and availability veri?cation are conducted forcritical business systems; mechanisms for malware protection andvirus elimination programs are established.

Data protection

A personnel security awareness education and training system isestablished and implemented, with regular training activitiesconducted to enhance the organization's overall informationsecurity awareness.

Security awareness training

Internal vulnerability scanning systems are utilized for routineinspections; periodic penetration testing is conducted in collabora-tion with external security service providers.

Vulnerability scanning and penetration testing

Facial recognition access control systems are deployed in criticalsecurity areas such as archives rooms to strengthen physical accesscontrol.

Facial recognition access control systemIPSEC VPN and SSL VPN networks are self-established between the headquarters campus and various branches to safeguard internal commu-nication security.

Encrypted communication

All external systems use the SSL protocol to establish encrypted connections, ensuring secure data transmission.Secure connections

Identity access authorization and periodic audit procedures are implemented; a strict physical access management system for external person-nel is established to strictly control access to restricted areas.Identity access management

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

The Company places great importance on customer privacy protection and has formulated the Administrative Provisions on the Security Management of Personal Information Processing and the DataSubject Rights Response Procedures, thereby providing institutional safeguards for customer privacy reporting. Prior to collecting customers' personal information, the Company provides clear and explic-it noti?cations to customers; it strictly limits the scope and scale of privacy data collection, implements secondary authorization management for information use related to extended functions, andsafeguards customers' lawful rights to cancel accounts and withdraw from services, thereby comprehensively regulating the entire process of personal information handling.

Customer Privacy Protection

Case Study: Information Security TrainingOn August ?, ????, the Company organized a specializedtraining session on information security and risk preven-tion awareness for relevant employees, e?ectivelyenhancing their awareness and practical capabilities ininformation security protection through a combination oflectures and assessments.

Key Performance

Number of incidents of information security and privacy protection violations during the Reporting Period:

?.

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

Key PerformanceDuring the Reporting Period,The number of relevant data security training sessions conducted:

??;

The total hours of training related to data security protection: ???;The number of participants in training: ???;The average training duration per capita for data security protection: ? hours/person;The coverage rate of data security protection training: ???%;Total investment in data security: ???(in RMB ??,???).

The Company is committed to building a responsible supply chain and has established the Business Paner Development and Management System. The Supply Chain Center of each businessdivision is responsible for supplier development, evaluation, periodic review, and record maintenance, and reviews suppliers' anti-terrorism security assessment reports to ensure that supplierpartners meet standards in quality, compliance, and sustainability, thereby safeguarding supplier robustness and sustainability.

Governance

Strategy

Supplier Management

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

Policy andLegal Risks

LowMediumMid-termMediumOperationsPolicy adjustments may lead to risks such as restrict-ed international trade routes and supply chaindisruptions

For raw materials with relatively high consumption,domestically produced model alternatives are veri?ed asbackups and introduced into production in small batchesto address potential uncertainties arising from futurepolicy changesIncreasedoperating costs

MarketRisks

MediumHighShortHighOperationsSuppliers' outdated technology and insu?cientquality control may impact product delivery andincrease the risk of product recalls

The Quality Department's SQE provides guidance tosuppliers on standards improvement and regularly auditssuppliers' on-site processing proceduresIncreasedoperating costs

Technicalopportunities

HighHighLong-termHighOperationsEmerging technologies such as the Internet of Things,big data, and arti?cial intelligence provide enterpris-es with opportunities for digital transformation of thesupply chain

Through the Company's OA system, full-process onlinevisual management is realized from order issuance, labelgeneration, and delivery note issuance to goods receiptacknowledgment, queue-based inspection, andwarehousing inspection, thereby enhancing the e?cien-cy and accuracy of information ?owReducedoperating costs

ReputationOpportunities

MediumLow

Medium andlong-term

LowDownstreamE?ective practices in supply chain risk managementcan ensure operational continuity and stabledelivery, enhancing the Company's reliability andreputation in the eyes of customers and investors

In public documents such as ESG reports, the Companyproactively discloses speci?c actions and achievementsin strengthening supply chain resilience, conveyingpositive management signals to stakeholdersAugmentedoperating income

Type of Risk/Opportunity

Description of Risk/Opportunity

Probability ofOccurrence

ImpactMagnitude

ImpactTimeframe

Value ChainLinks of Impact

Priority

Ranking

PotentialFinancial Impact

Response Measures

Solex is aware that supply chain stability and sustainability are vital to business operations. To this end, the Company integratesESG principles into supply chain management by establishing and continuously improving corresponding managementprocesses to control potential risks and seize development opportunities, thereby continuously enhancing supply chain resil-ience and providing critical support for the Company's long-term stability and sustainable development.In ????, the Company continued to strengthen supply chain security and compliance management by conducting regularinspections of business partners' supply chain security systems and organizing suppliers to carry out C-TPAT anti-terrorismself-inspections and Customs AEO trade security investigations, systematically identifying and addressing potential risks andstriving to collaboratively build a secure supply chain ecosystem with partners.

The Company has comprehensively extended operational management to all segments of the supply chain. In the future, it willfurther promote the optimization and universal application of supplier management mechanisms, strengthen resilience andresponsiveness across the entire value chain, and lay a solid foundation for long-term corporate development.

The Company has established process management coveringsupplier screening, review, assessment, and exit, standard-ized business partner evaluation procedures, promotedsupplier capability enhancement and deepened cooperation,and built mutually trusting, win-win, long-term, and stablesupplier relationships.

Impact, Risk and Opportunity ManagementFull Lifecycle Management of Suppliers

Metrics and Targets

UnitKey Performance Indicators????Total Number of SuppliersEast ChinaSouth ChinaNorth ChinaCentral ChinaNortheast ChinaSouthwest ChinaNorthwest ChinaHong Kong, Macau, and TaiwanThe total number of our overseas suppliers wasProportion of Procurement Expenditure from Local Suppliers

entity

entity

entity

entity

entity

entity

entity

entity

entity

entity%

?，?????????????????????

Procurement development personnel collect and assess informationand credit status of potential suppliers through multiple channels,screen target suppliers, proactively engage with them to examinecooperation compatibility, and ultimately conduct inquiries and costanalyses to preliminarily determine intended partners.

Selection of Suppliers

Through cross-departmental collaboration, on-site reviews andcomprehensive evaluations are conducted on target suppliers'capabilities in quality, technology, service, and safety. Upon approv-al, they are included in the quali?ed supplier directory.

Supplier Review

Quality risks are controlled through contracts and procurementstrategies; suppliers undergo regular performance evaluations andsafety assessments, and their credit and operational status arecontinuously tracked for dynamic management adjustments, whiledi?erentiated on-site evaluations are implemented based on materi-al importance and supplier certi?cation levels.

Supplier Assessment

During periodic assessments and evaluations, recti?cation deadlinesare set for unquali?ed suppliers. Those who meet recti?cationrequirements may be retained, while those who fail to meetstandards will have their cooperation quali?cations revoked.

Supplier Exit

?????? Environmental, Social, and Governance (ESG) ReportEmpowering Industry and Creating Enduring Value

In basic supply contracts, the Company explicitly requires all suppliers to adhere to business ethics, strictly comply withanti-commercial bribery regulations, resolutely resist and reject any form of improper bene?t exchange, and refrain from anyconduct that may harm the Company's interests. In the event of any violation, the Company will pursue liability for breach ofcontract in accordance with contractual provisions and reserves the right to take further legal measures.

At the supplier admission stage, the Company veri?es wheth-er suppliers are chemical enterprises and checks whetherthey have formulated internal environmental policies toensure that their operations and management comply withthe Company's environmental access standards. In ????, thesubsidiary Zhangzhou Solex was successfully included in the???? Provincial Green Supply Chain Management EnterpriseList issued by the Fujian Provincial Department of Industryand Information Technology, fully demonstrating the Compa-ny's solid achievements in collaborating with upstream anddownstream partners to build a sustainable value chain.

Case Study: Procurement Development Process TrainingIn December ????, the Company conducted a specialized training session on the procurement develop-ment process for internal procurement development personnel. This training focused on details ofquotation work, mold development cycles for various categories in project contracting, and the dimen-sional and performance reports required for sample con?rmation, with on-site questioning used forassessment. Following this training, all participants gained a deeper understanding and mastery of therequirements for each stage of the procurement development process.

Supplier ESG Management

The Company attaches great importance to supply chain digitalization, achievingfull-process online and transparent management of procurement through the OAbidding system, which automatically assigns responsible departments based on mate-rial types and supports end-to-end collaboration from demand initiation to quotationreview. Meanwhile, in conjunction with the MES system, re?ned full-process control ofproduction scheduling is realized. The incoming material receipt queue-calling systemoptimizes warehousing and logistics e?ciency, and the implementation of electronicsupplier contracts enhances collaboration e?ciency, comprehensively promotinge?cient coordination and digital operation of the supply chain.

Digitalization Construction of Supply Chain

Integrity in the Supply Chain

Green Supply Chain

Provincial Green SupplyChain Management Enterprise

Zhangzhou SolexCreation Exchange Seminar

OA Bidding System

MES System Scheduling

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Key PerformanceDuring the Reporting Period,the signing rate of the Supplier Integrity Agreementwas??%.

Responsible Supply ChainThe Company actively advances the construction of a responsible supply chain by prioritizing suppliers that have obtainedenvironmental and occupational health and safety management system certi?cations and requiring suppliers to sign environ-mental and occupational health and safety commitment letters. At the same time, the Company conducts targeted specialassessments on quality management systems and employee rights protection to ensure that suppliers possess reliable qualityassurance capabilities and compliant operational standards, strictly implementing requirements to eliminate child labor andsafeguard reasonable working hours and fair compensation, thereby e?ectively protecting the legitimate rights and interests ofsupply chain employees. In addition, the Company promotes comprehensive improvements among suppliers in green produc-tion, quality control, and contract performance capabilities through irregular ESG-dimension supplier training sessions.

Case Study: Opening Ceremony of SolexVietnam BaseIn October ????, the Company's Vietnam base successfullyheld a grand opening ceremony and invited representativesof key domestic suppliers to attend, aiming to jointlywitness the Company's strategic progress in global manu-facturing and supply chain capability development, furtherconsolidating strategic partnerships and demonstrating a?rm commitment to coordinated development and sharedgrowth.

In strict compliance with the Law of the People's Republic ofChina on the Promotion of Small and Medium-sized Enterpris-es, the Regulations on Ensuring Payments to Small and Medi-um-sized Enterprises, and other laws and regulations, theCompany consistently upholds the principle of equal treat-ment of SMEs and makes payments in accordance with thelaw and contractual agreements. As of the end of the Report-ing Period, neither the Company nor its holding subsidiarieshad any overdue payments outstanding to SMEs, nor werethere circumstances where the balance of accounts payable(including notes payable) exceeded RMB ?? billion oraccounted for more than ??% of total assets.

Equal Treatment of Small and Medium-SizedEnterprises

Against the backdrop of accelerated restructuring of the global supply chain, the Company leveraged the inauguration of itsVietnam base to deepen cooperation with core suppliers, e?ectively enhancing supply chain resilience and industry reputation.In the future, the Company will continue to deepen its supply chain strategic layout and build a more competitive global supplynetwork, providing strong support to address market changes.

Supplier Communication

Case Study: Supplier Quality TrainingDuring the Reporting Period, the Company conducted a specialized training session for suppliers themed "Quali-ty Appearance Improvement." The training focused on key aspects such as material appearance standards,defective appearance process control, and shipment inspection, clarifying quality risks and preventivemeasures, enhancing suppliers' quality awareness and operational standardization, laying a foundation forsubsequent quality improvement and compliant supply, and strengthening the market competitiveness of theCompany's products.

UnitKey Performance Indicators????Number of Suppliers Certi?ed under Quality Management SystemsNumber of Suppliers Certi?ed under Environmental Management SystemsNumber of Suppliers Certi?ed under Occupational Health and Safety Management SystemsNumber of Suppliers Suspended due to Non-compliance

Units

Units

Units

Units

?????????

?

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Attracting Talent andBuilding UnityOur PhilosophySolex upholds the cultural values of "Advocating science andmutual support," consistently placing people-oriented care atthe core, attentively safeguarding employee growth andwell-being, improving rights protection, establishing develop-ment pathways, and striving for the shared growth of employeesand the enterprise.

Our ActionsProtection of Employees’ Rights and InterestsOccupational Health and SafetySDGs

???? Environmental, Social, and Governance (ESG) Report???? Environmental, Social, and Governance (ESG) Report

Protection of Employees’ Rightsand InterestsTalent Attraction and RecruitmentThe Company regards recruitment as an important foundationfor building its talent pipeline and, through rigorous and stan-dardized full-process recruitment management, reserveshigh-quality talent for high-quality corporate development.

The Company implements diversi?ed recruitment through multiple channels, including online recruitment platforms, o?ine jobfairs, school-enterprise cooperation, headhunting services, and internal referrals. Throughout the recruitment process, the Companyadheres to the principles of fairness, impartiality, and openness in objectively evaluating candidates and selecting the best, ensuringtransparency in recruitment and hiring through stages such as resume collection, departmental screening, written examinations,interviews, and employment decisions.

The Company strictly complies withthe Labor Law of the People's Repub-lic of China, the Labor Contract Lawof the People's Republic of China, andother relevant laws and regulations,and has formulated internal policiessuch as the General Worker Recruit-ment System, the Human ResourcesManagement System, and the Talent

Recruitment Management

Key Performance IndicatorsUnit????Total Number of EmployeesPercentage of contract workersNumber of Part-time EmployeesNumber of employees of minority nationalitiesNumber of employees with disabilitiesNumber of Veteran EmployeesAverage monthly number of new employeesAverage monthly number of employees departedAverage monthly employee turnover rate

person%personpersonpersonpersonpersonperson%

?,??????????????????????%

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Introduction Management System, clearly designating theHuman Resources Department as the coordinating managementbody for recruitment, responsible for organization, coordination,and supervision throughout the process to ensure that recruit-ment activities are conducted legally, compliantly, and in anorderly manner. In ????, the Company received the "HaicangDistrict Industrial Talent Attraction and Cultivation ContributionAward."

Male

Female

?? to ??(exclusive) years old

Under ??(exclusive) years old?? years old

or above

?,???persons

?，???personsBy Gender

?，??? persons

?,???persons

???persons

By Age

ChineseMainland

Hong Kong,Macau, and Taiwan

Overseas

Master’s Degree

By region

?,???persons

??personsBy AcademicQuali?cation

?,???persons

?,???persons

?person

???persons

Below Bachelor’s

Degree

Bachelor’s

Degree

The Company upholds the core values of diversity, equality, and inclusion, and has formulated andimplemented the Human Resources Management System, as well as supporting systems of itssubsidiaries, including the Diversity, Equality and Inclusivity (DEI) System and the Anti-Discrimina-tion, Anti-Harassment, and Anti-Abuse Management Specications. The Company strictly prohibitsthe employment of child labor under the age of ??; in all aspects of recruitment, employment, com-pensation and bene?ts, and promotion and development, it clearly stipulates that no di?erentialtreatment shall be imposed on employees based on gender, age, race, religion, nationality, sexualorientation, disability status, or any other personal characteristic, striving to create a fair, equitable,safe, reliable, respectful, and inclusive working environment for all employees. During the Report-ing Period, the Company did not experience any incidents involving child labor, forced labor,discrimination, or harassment.

The Company attaches importance to the continuous enhancement of employee capabilities andthe accumulation and inheritance of organizational knowledge, and has formulated the TrainingManagement System to provide guidance and normative basis for various training activities. TheCompany's training initiatives are closely aligned with business needs. At the end of each year, theHuman Resources Center coordinates with various departments to formulate the training plan forthe following year based on actual business requirements, which is implemented upon approval.The Company has established a tiered and graded training system, scienti?cally categorizing train-ing structures and employee levels, and, through a combination of internal instructor cultivationand the introduction of external professional resources, provides employees with multi-dimension-al and phased learning support.

Diversity, Equality and Inclusivity

Establish open communication mechanisms, provide multilingual support,and promote mutual respect and con?ict resolution.

Communication andCross-cultural Management

Conduct regular diversity and inclusion training and cultivate leaders withdiversity awareness.Training and AwarenessEnhancement

DimensionKey Measures

Provide equal career development opportunities, respect diversity, andbuild barrier-free facilities.

Prohibition of discriminationand bias

Prohibit any form of harassment, including sexual harassment, verbalharassment, and psychological harassment. The system explicitly prohibitsunnecessary physical contact, sexually suggestive words and behaviors,and the creation of a fearful or hostile work environment, ensuring thatsecurity measures and other management actions do not constituteharassment of employees.

Prohibition of workplaceharassment

Strictly prohibit any form of forced labor, corporal punishment, threats of?nancial penalties, and inhumane disciplinary measures. Unreasonablerestrictions on employees' normal activities, rest, or access to medicaltreatment are prohibited, and the use of threats or coercive control tocompel employees to work against their will is strictly forbidden, ensuringthat all labor is based on voluntariness and equality.

Prohibit forced labor.

DimensionKey Measures

Training and development

Multi-channel Talent Recruitment

Campus RecruitmentOn-siteRecruitmentInternaland External

InternalApplicationTalentMarketsRecruitmentwebsiteUniversityEmploymentNetworks

OnlinePromotionSessions

EmploymentAgencies

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The Company emphasizes the practical e?ectiveness of training and categorizes trainingoutcomes into four progressive levels: reaction, learning, behavior, and results. The HumanResources Department, together with various departments, is responsible for tracking andevaluating these levels to continuously optimize training quality and empower employeegrowth.During the Reporting Period, the Company conducted tiered and graded trainingprograms focusing on new employees, high-potential employees, and personnel in keypositions, implementing three major initiatives—"Xiaosong Camp," "High-Potential Camp,"and "Position-speci?c Skills Thematic Training"—and adopting a "theory + practice +review" training model. The pass rate for all three training assessments reached ???%, withoverall satisfaction exceeding ??%, e?ectively promoting participants' capability enhance-ment and the transformation of training outcomes.

Xiaosong Camp TrainingHigh-Potential Camp Training

By Structure: Basic Courses, Skills Courses, Management CoursesBy Level:

New Employee Training Courses, On-the-job Training Courses, Manage-ment Courses, Skills CoursesTrainingCategory

Knowledge Training, Skills Training, Management Capability Training, etc.TrainingContent

Internal Training, External TrainingTrainingModes

In-class Internal Training, Public Courses, External Assignments, Study

Visits, Multimedia/Online Video Learning, School-enterprise Cooperation,

etc.Training

Modes

The Company actively builds a digital learningplatform, providing all employees with convenientand ?exible online learning channels that supportknowledge updates and skill enhancement anytimeand anywhere through fragmented time utilization.

The Company has established an instructor team and formulated the Internal Trainer Man-agement System, categorizing instructors into regularly selected and certi?ed instructors andspecially appointed instructors based on positions, with the Human Resources Centeruniformly responsible for their selection, grading, assessment, and incentives. The Companyhas established rank promotion pathways, annual teaching requirements, and lecture remu-neration incentives for instructors, and implements dynamic management through annualevaluations to continuously enhance the professional standards and instructional vitality ofthe instructor team.

Training Platform

Training Instructors

Cloud Learning Platform

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The Company attaches great importance to compensation management and has formulated theCompensation Management System in accordance with the fundamental principles of remunera-tion based on position, individual capability, and performance. Fully respecting the di?erentiatedcharacteristics of its subsidiaries, the Company grants them autonomy in compensation structuredesign and management within the overarching compensation framework, so as to accommodatetheir unique needs in terms of geographic location, regulatory environment, and incentive focus.In addition, the Company actively implements equity incentive schemes to provide long-termincentives to senior and middle management as well as core personnel. As of the end of the Report-ing Period, a cumulative total of ??? employees had received equity incentives, collectively holding?.??? million shares.

The Company has established ?ve major position categories: management, functional, profession-al technical, marketing, and operational, and a career development framework centered on dualcareer pathways. It also advances talent pipeline system development through multi-dimensionalevaluation methods such as regular talent reviews, Individual Development Plans (IDPs), and com-petency and performance reporting, assessing and promoting employees based on their compre-hensive performance in professional knowledge, professional skills, and work achievements, there-by establishing an open and fair promotion mechanism.In addition, the Company actively advocates and supports internal job mobility, encouragingemployees to continuously enhance their comprehensive capabilities through cross-functionalrotations, mentorship programs, and other mechanisms, thereby realizing personal value in posi-tions best suited to their strengths.

Career Development

Career Development Dual Channel

Compensation and Bene?ts ManagementCompensation Management

Refers to the base salary determined according tothe employee’s position, capabilities, etc., includ-ing basic salary and comprehensive post wage.Refers to welfare allowances paid in cash, mainly includingmeal allowances, transportation allowances, and environmentallowances.Includes performance bonuses, overtime pay, special rewards,and annual on-the-job incentive bonuses, etc.Such as social insurance (pension, medical, unemployment, work-relatedinjury, and maternity insurance), housing provident fund, annual healthcheck-ups, holiday gifts, mutual aid fund, housing assistance programs,and other employee welfare initiatives.

Annual ?xedsalaryAnnual welfare

allowanceAnnual variable

income

Other bene?ts

Annual

?xedsalary

Annual

totalcashincomeAnnual

totalcompensationShiftLeader

Section

Chief

Manager

CoreManagement

TeamHead

JuniorEngineer

SeniorEngineerIntermediateEngineer

SeniorEngineer

ChiefEngineer

Basic Compensation Structure

?????? Environmental, Social, and Governance (ESG) ReportAttracting Talent and Building Unity

Key Performance IndicatorsUnit????Investment in Employee TrainingTotal Training HoursNumber of training sessionsTotal Number of Persons TrainedTotal Number of Persons TrainedEmployee training coverage rateAverage training hours per employee

RMB ??,???hoursessionpersonPerson-time%hours/person

??.????,???????,????,??????.??

The Company strictly complies with national laws and regulations, including the Regulations on theNational Social Security Fund and the Measures for the Implementation of Paid Annual Leave forEnterprise Employees, and has established a diversi?ed employee welfare and protection system.The Company clearly stipulates core employee rights and interests such as working hours manage-ment, leave protection, and salary subsidies in the Human Resources Management System, andprovides comprehensive support for employees' work and life through a people-oriented bene?tsframework, thereby enhancing their sense of well-being.

To continuously enhance organizational e?ectiveness, the Company has established the Peor-mance Evaluation System and built a performance management system centered on aligningupward with strategic implementation and downward with talent management. The Companyconducts monthly, quarterly, and annual assessments on a regular basis, and sets di?erentiatedassessment indicators and weightings for di?erent job categories and levels, ensuring alignmentbetween evaluation criteria and job responsibilities, work nature, and strategic contribution. Theresults of performance appraisals are directly linked to performance bonuses, salary adjustments,and promotion opportunities. Employees with outstanding performance are given priority inannual excellence selections and special bene?ts applications, thereby providing strong incentivesfor value creation.

Employee Bene?ts

Annual health check-ups, gynecologic examinations, special post-speci?chealth checks, etc.Health

Compassionate grants, marriage allowance, maternity allowance, andhigh-temperature allowanceSubsidies

Provide meal allowances or free mealsDining

Performance bonus, festival bonus, R&D bonus, etc.Bonuses

Social insurance contributions as required by the law.Insurance

Provide housing fund contributions, sta? dormitories, etc.Accommodation

Public holidays, special leave, leave in lieu, personal leave, sick leave, marriage

leave, maternity leave, pregnancy check leave, breastfeeding leave, paternity

leave, bereavement leave, work-related injury leave, parental leave, etc.Leave

The Company provides opportunities for further education and trainingEducation

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Key PerformanceDuring the Reporting Period,??.??% of employees underwent regular performance and career develop-ment evaluations.

Key PerformanceDuring the Reporting Period,the Company achieved???% coverage of social insurance,with an average of ?.?? days of paid annual leave per employee.Performance Management

Performance Appraisal

Labor Relations Management

Labor Dispute Management

Appeals and FeedbackUpholding a culture of candor and transparency in performance management, the Company hasestablished mechanisms and channels for performance feedback, interviews, and appeals toensure that employees can fully express their views during the performance management process.If an employee has objections to the assessment results or believes they have been treated unfairly,they may raise the matter level by level during the assessment period or within three days ofbecoming aware of the results, or directly ?le an appeal with their department head or the responsi-ble supervisor. Where an employee considers it inconvenient to appeal through their department,they may directly submit an appeal to the Human Resources Department.

To handle labor disputes in a fair and timely manner and foster harmonious labor relations, theCompany has established a Labor Dispute Mediation Committee and formulated the Organizationaland Working Regulations of the Labor Dispute Mediation Committee. The Labor Dispute MediationCommittee consists of both enterprise representatives and employee representatives, and resolvescon?icts e?ectively through internal consultation, safeguarding employees' lawful rights and inter-ests, preventing and reducing labor disputes, and promoting the Company's long-term stabledevelopment.

Employee Care and CommunicationDemocratic ManagementThe Company respects employees' rights to information and participation, and continuouslyimproves the enterprise democratic management system with the Employees' RepresentativeCongress as its basic form. It has formulated the General Principles of the Labor Union and theEmployee Rights Protection System, and established the labor union as the working body of theEmployees' Congress, responsible for the execution of daily democratic management. The Compa-ny continues to broaden channels for democratic participation and communication by organizingforums and setting up employee suggestion boxes to solicit and respond to proposals, extensivelycollecting employees' opinions and suggestions on living bene?ts, human resources and labormatters, production and operations, and other aspects, and providing active responses.

Employee Resignation ManagementThe Company has clearly de?ned the resignation management process in the Human ResourcesManagement System, covering key procedures such as work handover, asset return, ?nancial settle-ment, and administrative clearance. Relying on the OA system, the Company realizes full-processonline approval and progress tracking to ensure that resignation procedures are standardized,e?cient, and traceable. For key personnel with access to con?dential information, the Companyimplements a declassi?cation period management mechanism. For employees who resign due todisciplinary violations, corresponding measures are taken in accordance with relevant regulations.For employees eligible for compensation, economic compensation is paid in accordance with thelaw.

Upon receipt of an employee performance appeal, assess its timeliness anddecide whether to accept itDetermine handling measures and communicate with the appealing employeeThe Human Resources Department reviews appraisal records and noti?es thedepartment to provide relevant materialsDetermine handling measures and communicate with the appealing employee

Process for Handling Employee Performance Appeals

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Key PerformanceDuring the Reporting Period, there were ? labor dispute cases .

The Company continues to deepen the protection of women'srights and interests, ensuring equal rights and developmentopportunities for female employees throughout the entireprocess of recruitment, compensation and bene?ts, trainingand development, and career advancement. In recruitment, theCompany stipulates that positions suitable for women shall notrefuse employment on the basis of gender. Within the compen-sation system, the principle of equal pay for equal work is strictlyimplemented to ensure that female employees receive equalremuneration for work of equal value.

In addition, the Company conducts satisfaction surveys amongdi?erent categories of employees, covering areas such as corpo-rate culture and bene?ts, working environment, and health andsafety, with all satisfaction indicators exceeding ??%. In responseto certain issues identi?ed in the surveys, the Company has initiat-ed the formulation of corresponding improvement plans tocontinuously enhance employee experience and organizationale?ectiveness.

To e?ectively safeguard employees' rights and assist them in coping with ?nancial di?cultiescaused by sudden illness or accidents, the Company has established an employee mutual aidfoundation and formulated the Solex Employee Mutual Aid Fund Management Measures. TheFoundation's funds are primarily sourced from the Company's initial contribution and voluntarymonthly donations from employees. For eligible employees and their immediate family mem-bers, the Foundation provides varying proportions of medical expense assistance or educationalloan support based on their speci?c circumstances. During the Reporting Period, the Companycarried out employee assistance initiatives in Xiamen, Vietnam, and other locations, providingsolid support for employees and their families and enabling them to work with peace of mindand live happily.

Employee Assistance

Protection of Women's Rights and Interests

Employee Congress

Assistance for Employees in Vietnam

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Key PerformanceDuring the Reporting Period,the Company assisted?? employees in need,with a total amount of ?.?? (in RMB ??,???)providedin support.Key Performance IndicatorsUnit????Number of employees' congress meetings heldNumber of proposals reviewed and adopted by the Employees' CongressNumber of projects reviewed and approved by the trade unionProportion of trade union members to in-service employeesEmployee Satisfaction

sessionproposalproposal%%

???????.????.??

Employees’ Mental HealthThe Company and its subsidiaries attach importance to employees' mental health and emotionalsupport, having established psychological counseling rooms and employee emotional care cornersto provide professional psychological support and spaces for daily emotional adjustment.

Employee Emotional Care CornerPsychological Counseling RoomEmployee ActivitiesThe Company consistently prioritizes the protection of employees' physical and mental health andthe enhancement of team cohesion. During the Reporting Period, the Company and its subsidiariesfocused on employee care and cultural cohesion, organizing a wide range of recreational, sports,and holiday greeting activities, including holiday celebrations, parent-child interactions, sportscompetitions, summer cooling initiatives, and interest club co-building activities, demonstratinggenuine care for employees' work and life and strengthening team belonging and overall cohe-sion.The Company consistently prioritizes the protection of employees' physical and mental healthand the enhancement of team cohesion. During the Reporting Period, the Company and its subsid-iaries focused on employee care and cultural cohesion, organizing a wide range of recreational,sports, and holiday greeting activities, including holiday celebrations, parent-child interactions,sports competitions, summer cooling initiatives, and interest club co-building activities, demon-strating genuine care for employees' work and life and strengthening team belonging and overallcohesion.

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Women’s Day Activities

Mother-Baby Room

·The Company prohibits assigning female employees to work that endangers their

health and provides comprehensive special protections for female employeesduring pregnancy, maternity, and breastfeeding periods.·During pregnancy through the breastfeeding period, salaries shall not be

reduced, and labor contracts shall not be unilaterally terminated. Statutory rightssuch as prenatal check-up leave, maternity leave, and breastfeeding leave areimplemented in accordance with the law.·The Company has established a Female Employees Committee to safeguard thelawful rights and interests of female employees during special periods, and hasbuilt a multi-channel communication and supervision mechanism involvingemployee representatives, union coordination, and departmental liaisons,ensuring that any infringement of women's rights can be e?ectively reported andaddressed through internal appeal channels.

Key PerformanceDuring the Reporting Period,the proportion of female managers:

??.??%;Number of employees who took maternity leave: ??;return rate from maternity leave: ??%;Number of employees who took parental leave: ???;return rate from parental leave: ???%

Dragon Boat Festival Activity

Parent-Child Activities

Anniversary Celebration Activities

Employee Birthday Party

Occupational Health and SafetyWork Safety Management

In strict accordance with the Law of the People's Republic ofChina on Work Safety and other relevant laws and regulationsand upholding the principle of "safety ?rst, prevention-oriented,and comprehensive management," the Company has formulat-ed the Quality, Environment and Occupational Health andSafety Management System Manual and the Work Safety Objec-tives and Responsibility Management System. It has also issued aseries of standardized work safety procedure documents toprovide comprehensive guidance and support for work safety.The Company has established a Safety Management Center asits safety management body, clearly de?ning the speci?cresponsibilities of each department and member to ensure thesystematic implementation and e?ective operation of the worksafety management system.To ensure the e?ective implementation of safety responsibili-ties, the Company has formulated safety assessment standardsand a work safety responsibility list, setting detailed assessmenttargets and indicators and clarifying the responsibilities of eachposition. By signing work safety target responsibility letters ateach level, the Company implements the principle of "whoeveris in charge is responsible," thereby strengthening risk preven-tion and control at the source and e?ectively safeguardingemployees' lives and health as well as production safety.

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As of the end of the Reporting Period, Solex and its subsidiaryZhangzhou Solex, as well as Bestter, had obtained OccupationalHealth and Safety Management System certi?cation; additional-ly, Solex and Zhangzhou Solex had received Level III Work SafetyStandardization certi?cation.

Occupational Health and SafetyManagement System Certi?cation

Work Safety Standardization Certi?cate

Organizational Structure of the Safety Management Center

Fire?ghting Technical ExpertSafety Technical ExpertSafety Standard Engineer

Deputy Chairman of the

Board of DirectorsSafety ManagementCenter

Tong'an Production BaseHaicang Production BaseChangtai Production BaseOverseas Production Base

The Company actively advances digital development in the?eld of occupational health and safety by establishing a uni?edsafety documentation system and safety information platform,and promoting the deployment of a digital safety managementplatform at its subsidiary Zhangzhou Solex, thereby compre-hensively enhancing the standardization, e?ciency, and riskcontrol capabilities of safety management.

Safety Information Platform

The Company conducts safety risk identi?cation, graded assessment, and dynamic control acrossall production and operational scenarios. It establishes a list of major risks for key risk points suchas operation sites, equipment and facilities, operating procedures, and personnel behaviors, e?ec-tively preventing various safety accidents.Goals for ????Zero work-related fatalitiesZero mass safety incidentsZero occupational diseases (including suspected cases)Zero acute poisoning accidents in production???% compliance rate for occupational hazard testing???% recti?cation rate of identi?ed hazards???% special operators licensed???% employee coverage rate for work safety education and training

???????%???%???%???%

Annual TargetAchievement

Digitalization Construction

Occupational Health and Safety Goals

Safety Risk Management

Potential hazards related to production equipment, processes, environ-ment, and operations are systematically identi?ed on a regular basis, andpotential safety risks are promptly detected and recorded.The LEC evaluation method is adopted to calculate risk values and classifyrisk levels, forming a List of Major Risks to clarify priority control objects.

RiskIdenti?cation

Corresponding control measures are formulated based on the list and risklevels, and are veri?ed and adjusted until risks are under control, afterwhich they are reviewed, approved, and communicated to all employeesfor learning and implementation.

RiskManagementand Control

RiskAssessment

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Key PerformanceDuring the Reporting Period,Investment in safety production:

???.?? (in RMB ??,???);Investment in work safety as a percentage of operating revenue: ?.??%;Work safety responsibility letters signed: ?,???.

Photos Before and After Recti?cation of Hazards

Identi?cation of Hidden HazardsThe Company always places work safety in a paramountposition, making overall arrangements and strictlyrequiring all subsidiaries to implement relevant mea-sures. During the Reporting Period, the Company and itssubsidiaries conducted comprehensive hazard inspec-tions. Issues identi?ed in areas such as ?re?ghting facili-ties, emergency passages, chemical management, equip-ment usage, and personal protective equipment weresubject to strict closed-loop recti?cation and reinforcedcommunication to all employees, ensuring e?ective riskcontrol and continuously enhancing re?ned safety man-agement.

Emergency ResponseTo prevent and control potential accidents and emergencies, the Company has formulated the First Aid Plans for VariousInjuries. Subsidiaries Bestter and Zhangzhou Solex have also developed Emergency Response Plans for Work Safety Accidents,establishing a comprehensive emergency plan system covering general plans, special plans, and on-site disposal plans, andsetting up corresponding emergency organizational structures to ensure that all emergency work is rule-based and responsi-bilities are clearly assigned. On this basis, the Company and its subsidiaries regularly organize drills to enhance risk preven-tion and emergency response capabilities.

??

Case Study: Fire Drill at the Robotics ParkOn June ?, ????, the Company successfully organized a large-scale comprehensive ?re emergency drill atthe Solex Robotics Park. The drill covered multiple components, including evacuation, indoor ?re?ghtingoperations, ?re suppression and rescue, and post-drill summary, with approximately ?,??? employeesparticipating. The drill e?ectively tested and enhanced employees' practical capabilities in emergencyevacuation, initial ?re suppression, and self- and mutual-rescue. Through review and summary, certainde?ciencies in protective actions and adherence to evacuation routes were identi?ed, providing a clearbasis for subsequent safety management improvements.

Case Study: Fire?ghting and Evacuation DrillOn June ??, ????, the Safety Management Department of Zhangzhou Solex organized a ?re?ghting and evacuation drill. Theactivity included simulated ?re evacuation and initial ?re suppression and lasted ?? minutes. By establishing an on-sitecommand center, coordinating emergency teams, and utilizing appropriate ?re?ghting equipment, orderly joint responsewas achieved. This drill e?ectively enhanced employees' understanding of ?re?ghting knowledge and improved their equip-ment operation and emergency escape capabilities, successfully achieving the objectives of being "scienti?c, safe, orderly,and rapid," and accumulating valuable practical experience.

???? Environmental, Social, and Governance (ESG) ReportAttracting Talent and Building Unity

Key PerformanceDuring the Reporting Period,Number of safety hazards identi?ed:

?,???;Recti?cation rate for identi?ed hazards: ???%.

The Company attaches great importance to occupational healthand safety management and actively fosters a safety culturecharacterized by full participation and continuous improve-ment. Focusing on the theme of "Everyone Speaks of Safety,Everyone Knows Emergency Response—Identifying SafetyHazards Around Us," the Company carried out a series of activi-ties during Work Safety Month. Through thematic lectures,poster campaigns, ?re?ghting skills competitions, and safetyknowledge contests, it created a strong atmosphere of fullparticipation, shared responsibility, and collective supervisionin work safety.

Safety Accident HandlingThe Company and its subsidiaries have formulated stan-dardized emergency response procedures for safetyaccidents, clearly de?ning operational requirements foreach stage, including accident reporting, on-site prelimi-nary handling, injury assessment, and graded medicalreferral, to ensure precise reporting and rapid responseat the earliest stage of any safety incident, thereby maxi-mizing personnel safety, minimizing accident impact,and strengthening the Company's work safety defenseline.

Construction of Safety Culture

First Prize in Fire?ghting Skills Competition

??

Case Study: Fire?ghting and Evacuation DrillDuring the ???? "Work Safety Month," the Company widelypromoted safety awareness through banners, posters, andexhibition boards, and held mobilization meetings to deployrelevant tasks. The Company organized special activities suchas rewards for hazard identi?cation by all employees andcross-inspections among teams. At the same time, it conduct-ed educational and entertaining activities such as fun safetyknowledge relay competitions to reinforce safety learning.Upon conclusion of the activities, advanced individuals andteams were commended, e?ectively fostering a strong cultureof "Everyone Speaks of Safety, Everyone Knows EmergencyResponse," and substantially enhancing employees' safetyawareness and hazard identi?cation capabilities.

???? Environmental, Social, and Governance (ESG) ReportAttracting Talent and Building Unity

Key PerformanceDuring the Reporting Period,The number of safety emergency drills:

??.

Key PerformanceDuring the Reporting Period,Number of Work Safety Accidents:

?;

Number of work-related deaths: ? person;Work-related fatality rate: ?%;

Total number of work-related injuries: ??;Lost workdays due to work-related injuries:

?,???.?? days;

Lost time rate per million working hours:

?,???.??;Lost Time Injury Ratio (LTIR): ?.??.

To achieve standardized and regulated management of outsourced construction safety, the Company has formulated the Solex Safetyand Civilized Construction Management Manual, specifying management requirements in ?ve aspects: safety management, on-sitecontrol, site protection, park ?re prevention, and civilized construction. Before entering the site, construction units must completequali?cation review, safety training, and technical disclosure. During construction, they must ful?ll their primary safety responsibili-ties. Construction sites must implement closed management, hazardous operations must follow approval and permit procedures,and protective measures for equipment, working at heights, and cross-operations must be standardized. The park strictly controlssmoking bans, hot work, electricity usage, and the management of ?ammable and explosive materials. At the same time, constructionenclosures, material stacking, and personnel activity areas are regulated, with proper pollution prevention, cleaning, and changereporting in place.During the Reporting Period, the Company strengthened contractor safety management by signing safety noti?cation letters,conducting training for external construction personnel, and implementing full-process permit management for high-risk operationssuch as work at height, temporary electricity use, and hot work, including pre-operation approval, process supervision, and post-op-eration acceptance.

Contractor Safety Management

The Company has formulated the Chemical Management Mea-sures, clarifying management responsibilities and operationalstandards for the procurement, acceptance, storage, use, anddisposal of hazardous chemicals, thereby controlling risks at thesource and safeguarding operational safety and personnelhealth.

Management of Hazardous Chemicals

Procurement

User departments transfer the approved Chemical Requisition &Acceptance Form to the procurement department, which conductspurchasing in accordance with the requirements.

AcceptanceUser departments inspect incoming chemicals in accordance withstandards, verify packaging validity periods, and store quali?ed chem-icals as required, while providing training to relevant operators.

Storage

Usage

Handling

Chemicals are stored in segregated zones according to their propertiesto ensure the e?ectiveness of ?re?ghting facilities and unobstructedsafety passages; hazardous chemical warehouses must be equippedwith alarms, explosion-proof lighting, and eyewash stations.

In the event of an accident, it shall be handled in accordance with theEmergency Preparedness and Response Control Procedure, and thevalidity periods of chemicals shall be monitored; expired or wastechemicals shall be safely disposed of or transferred to professionalinstitutions based on their environmental hazards.

Personal protective equipment must be worn when handling hazard-ous chemicals, and the working environment must be monitored bythe epidemic prevention station; any changes to chemicals, processes,or the environment must be reviewed by the Quality AssuranceDepartment and, where necessary, re-tested.

?????? Environmental, Social, and Governance (ESG) ReportAttracting Talent and Building Unity

Key PerformanceDuring the Reporting Period,Total investment in safety training:

?.?? (in RMB ??,???);Total hours of safety training: ?,???.??;Number of safety training sessions: ?,???;Total participations in safety training: ??,???;Employee coverage rate of safety training: ???%.

Employee PhysicalExamination

Noti?cation Card of Occupational

Disease Hazard

The Company implements the policy of "prevention in the ?rst place and integrating preventionwith control," and has formulated institutional documents such as the Occupational DiseasePrevention and Control Responsibility System and the Occupational Disease Protective EquipmentManagement System, and established an Occupational Health Leadership Group responsible forthe overall coordination, organization, and supervision of occupational disease prevention andcontrol. Meanwhile, the Company identi?es occupational health hazard factors based on speci?cwork scenarios and routinely conducts occupational health and safety knowledge training toenhance employees' awareness and capabilities of self-protection.

Occupational Health Protection

·Regularly entrust quali?ed third-party professional institutions to conduct testing of occupationaldisease hazard factors in the workplace;·Organize employees to participate in occupational health examinations and establish comprehen-sive occupational health records to systematically record and track employees' health conditions;·Provide employees with labor protective equipment such as earplugs in accordance with regulations

and ensure proper distribution and management;·Post occupational disease hazard noti?cation cards for sulfuric acid, dust, noise, and other hazardsin conspicuous locations at workplaces.

Case Study: Special Training on Occupational HealthOn October ??, ????, Zhangzhou Solex organized special occupa-tional health training for production team leaders, covering anoverview of occupational safety and health, classi?cation ofoccupational hazard factors, enterprise occupational diseasemanagement, and enterprise occupational health managementrecords and maintenance. The training successfully achieved itsexpected objectives and e?ectively enhanced the occupationalhealth protection awareness and knowledge level of employeesin relevant positions.

Key PerformanceDuring the Reporting Period,Percentage of special operators licensed:

???%;Investment in work-related injury insurance: ???.?? (in RMB ??,???);Coverage rate of work-related injury insurance for employees: ???%;Detection rate of occupational disease hazards: ???%;Coverage rate of physical examinations for employees:

???%;Number of New Cases of New Occupational Diseases: ?

?????? Environmental, Social, and Governance (ESG) ReportAttracting Talent and Building Unity

Bene?ting the People andFul?lling Responsibilities withKindness

Our PhilosophyThrough diversi?ed initiatives such as cross-border donationsand community elderly care activities, Solex actively conveyswarmth and supports community development; at the sametime, it e?ectively carries out employment assistance by provid-ing job opportunities and training support for impoverishedlaborers, contributing to rural revitalization through concreteactions.

Our ActionsPublic WelfareRural RevitalizationSDGs

???? Environmental, Social, and Governance (ESG) Report

Public WelfareWhile continuously pursuing business development, Solex actively ful?lls its corporate socialresponsibilities by systematically carrying out public welfare practices in multiple ?elds, includingeducational support, assistance for disadvantaged groups, and care for the elderly, integratingsocial responsibility into corporate operations and demonstrating diversi?ed commitments tosocial well-being and sustainable development through solid actions.

Case Study: Caring Program for Children in Poverty-Stricken Counties in VietnamIn ????, the Company donated a batch of brand-new bicycles to ??children in poverty-stricken counties in Vietnam, with a total value ofapproximately ?.? (in RMB ??,???). These bicycles e?ectively improvedthe children's daily travel conditions, facilitating their commute toschool and participation in community activities, and alleviatingfamily burdens. This donation not only addressed the children's practi-cal di?culties but also conveyed care and encouragement for theirhealthy growth, serving as a concrete manifestation of the Company'scommitment to international public welfare and community develop-ment.

Case Study: "Solex Cup" Campus Sports Public Welfare InitiativeZhangzhou Solex has continuously supported the development ofcampus sports and assisted Gunan Farm Central Primary School andMiddle School in hosting the "Solex Cup" track and ?eld meets inApril and December ????, respectively. The Company providedvarious material support for the two events, including sportsuniforms, competition prizes, audio equipment, and event setup,e?ectively ensuring the smooth conduct of the meets and enrichingstudents' campus sports life, representing a vivid practice of ful?llingsocial responsibility and supporting educational public welfare.

Case Study: Fengshuxing Respect-for-the-Elderly Public Welfare InitiativeDuring the Double Ninth Festival in ????, the Company visitedFengshuxing in Ming Community to carry out elderly condo-lence activities. To meet the elderly's needs for healthy diets,the Company donated ??? bottles of traditionally pressedpeanut oil to community seniors, with a total value of RMB?,???. This Double Ninth Festival visit not only delivered festivecare and blessings to community elders but also conveyedattention to the quality of life of the elderly through practicalsupplies, re?ecting the Company's commitment to promotingthe tradition of respecting the elderly and actively ful?lling itssocial responsibilities.

?????? Environmental, Social, and Governance (ESG) ReportBene?ting the People and Ful?lling Responsibilities with Kindness

Key PerformanceDuring the Reporting Period,Total public welfare input:

?.?? (in RMB ??,???).

Rural Revitalization

The Company strictly implements the requirements of the Notice by the Minist of Human Resources and Social Security, Minist of Finance, and the State Council Leading Group Oce of Povey Allevia-tion and Development of Fuher Improving Employment Povey Alleviation Work, e?ectively addressing di?culties in employment and job stability among impoverished laborers by providing suitable jobpositions and continuous vocational training support. Through proactive employment assistance measures, the Company supports the rural revitalization strategy and is committed to returning moreand fairer development achievements to society, bene?ting people's livelihoods.

?????? Environmental, Social, and Governance (ESG) ReportBene?ting the People and Ful?lling Responsibilities with Kindness

Key PerformanceDuring the Reporting Period,Number of poverty-alleviation employmentbene?ciaries:

???.

Future OutlookSolex's ESG outlook for the future centers on deeply integrating sustainable development into its business layout around "Green, Responsibility, and Innovation," which can be elaborated from threedimensions:

Production Side: Continuously expand the application of clean energy such as photovoltaics (e.g., the new rooftop photovoltaic projects at the Haicang and Tong'an bases), advancegreen infrastructure construction at the overseas factory in Vietnam, aiming to reduce energy consumption and carbon emission intensity across all production processes; meanwhile,upgrade the "AI+MES" intelligent manufacturing system to improve resource recycling rates, with plans to further increase the classi?cation and recycling rate of solid waste.Product Side: Focus on "green design" for smart kitchen and bathroom products and health hardware, prioritize the use of recyclable or low-environmental-impact materials, developenergy-saving intelligent products (such as low-power bathroom systems and water-saving showerheads), and incorporate "low-carbon attributes" into the core indicators of newproduct research and development.Employee Rights and Interests: Improve the occupational health and safety management system while providing employees with skills training aligned with new businesses such asrobotics and AI to broaden development opportunities;Social Value: Relying on the elderly care robotics business, extend ESG into elderly care scenarios—through mobility-assistance and nursing robots as well as age-friendly kitchen andbathroom products, support smart elderly care in an aging society; at the same time, use the Company's industrial parks as pilot sites to promote logistics service robot systems,enhancing operational e?ciency and safety in public scenarios.Continuously improve the ESG governance structure, leverage the overall coordination role of the Board of Directors and the ESG Committee, and re?ne ESG responsibilities of variousdepartments (such as risk control and information disclosure);Deepen the construction of international compliance systems (such as ISO information security and fair competition certi?cations) to ensure compliant operations of overseas busi-nesses (such as the Vietnam factory), while enhancing transparency in investor communication and strengthening stakeholder trust.Overall, Solex's ESG outlook is to "carry sustainable value through business innovation"—not only practicing environmental responsibility through green manufacturing and low-car-bon products, but also creating social value through new businesses such as elderly care robotics, while ensuring long-term steady development through compliant governance.

Environment (E): Deepening Low-Carbon and Green Manufacturing

Social (S): Expanding the Boundaries of Responsibility and Scenario Value

Governance (G): Strengthening Compliance and Transparency

?????? Environmental, Social, and Governance (ESG) ReportBene?ting the People and Ful?lling Responsibilities with Kindness

?????? Environmental, Social, and Governance (ESG) ReportAnnexAnnex

Key PerformanceEnvironmental Performance

Social Performance

Total environmental investmentEnvironmental protection taxes paidNumber of environmental incidents

RMB ??,???RMB ??,???casekWhlitersliters??,??? m3

MWh

?,???,?????,???.????,???.????.????,???.??

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?,???.???.???

?.??

??,???.??

Photovoltaic power capacity

Gasoline

DieselNatural GasTotal purchased electricity (Domestic)

Waste gas emissionsWastewater dischargesQuantity of non-hazardous waste generatedQuantity of hazardous waste generated

Total water consumptionRecycled water consumption

m3m3??,??? m3??,??? m3tonton

???,?????,??????,???.????.???,???.???,???.??

???,???.????.???,???.???,???.??

???,???.??

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Unit????????Performance Indicators????

Unit????????Performance Indicators????Percentage of contract workers%?????????personpersonpersonperson%

?,???

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Total number of employeesNumber of part-time employeesNumber of employees with disabilitiesNumber of employees of minority nationalities

Employee satisfaction

EnergyConsumption

Water Resource

Consumption

PollutantEmissions

EmployeePerformance

?????? Environmental, Social, and Governance (ESG) ReportAnnex

RMB ??,???%person%

??,???.???.???????.??

??,???.???.?????

??,???.???.????.??

?????.??

R&D investment amountPercentage of R&D investment in operating income

Number of R&D personnelCustomer satisfaction

sessioncase

????

???Number of relevant training sessions conductedNumber of incidents of information security and privacy

protection violations during the Reporting Period

%person%person

%

RMB ??,???sessionpersonPerson-timehourhours/personpersonsession

hourcase

%

%

??.??

????.??

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Proportion of female managersNumber of employees who took maternity leave

Return rate from maternity leaveNumber of employees who took parental leave

Return rate from parental leave

Investment in employee trainingNumber of training sessionsTotal number of employees trained

Total attendanceTotal training hoursAverage training hours per employee per year

Number of work-related deathsNumber of security emergency drillsTotal hours of safety trainingNumber of new cases of new occupational diseases

Social insurance coverage ratePercentage of employees underwent regular performance

and career development assessments

Protection ofWomen's Rightsand InterestsCompensationand Bene?ts

Trainingand Development

OccupationalHealth and Safety

Research

and Innovation

Information

SecurityCustomer Service

Unit????????Performance Indicators????

personmeetingproposal

????

????

?????Number of members of the Board of DirectorsNumber of meetings of the Board of Directors convened

Number of proposals deliberated

sessionpersonperson

%case

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?

Number of legal training sessions conductedNumber of participants in legal trainingNumber of individuals who signed the integrity commitment letter

Signing rate of integrity commitment letterNumber of corruption lawsuits ?led and concluded

meetingproposal

???

???

???Total number of General Meeting of Shareholders convened

Number of proposals deliberated

RMB ??,????,???.???,???.?? ?,???.??Total pre-tax remuneration for directors, o?cers, andsupervisors during their term of o?ce from the Company

RMB ??,?????.????.???.??Total public welfare input

entitycase

?,??????

?,????,???Total number of suppliersNumber of incidents with signi?cant riskand impact in the supply chain

Governance Performance

SupplyChain Management

General Meetingof ShareholdersBoard of Directors

Remuneration

PoliciesCompliance andBusiness Ethics

Social Welfare

Unit????????Performance Indicators????

Unit????????Performance Indicators????

???? Environmental, Social, and Governance (ESG) ReportAnnex??

???????

Response to Climate ChangePollutant Emissions

Waste DisposalEnvironmental Compliance Management

Energy UtilizationWater Resource UtilizationCircular Economy

Product and Service Safety and QualityData Security and Customer Privacy Protection

Employees

Nurturing the Ecosystem and Advancing Sustainably Through Green DevelopmentNurturing the Ecosystem and Advancing Sustainably Through Green DevelopmentNurturing the Ecosystem and Advancing Sustainably Through Green DevelopmentNurturing the Ecosystem and Advancing Sustainably Through Green DevelopmentNurturing the Ecosystem and Advancing Sustainably Through Green DevelopmentNurturing the Ecosystem and Advancing Sustainably Through Green DevelopmentNurturing the Ecosystem and Advancing Sustainably Through Green Development

??Innovation-drivenEmpowering Industry and Creating Enduring Value??Supply Chain SecurityEmpowering Industry and Creating Enduring Value

Empowering Industry and Creating Enduring ValueEmpowering Industry and Creating Enduring ValueAttracting Talent and Building Unity??????????????

Due DiligenceCommunications with StakeholdersAnti-commercial Bribery and Anti-corruption

Anti-unfair Competition

Sustainable Development GovernanceSustainable Development GovernanceBuilding a Solid Governance Foundation with Integrity and DiligenceBuilding a Solid Governance Foundation with Integrity and Diligence

??

Equal Treatment of Smalland Medium-Sized Enterprises

Empowering Industry and Creating Enduring Value

（This disclosure applies to enterprises with accounts payable (including notes payable) exceeding RMB ?? billion or accounting for over??% of total assets during the reporting period. The Company has no overdue payments to small and medium-sized enterprises.）

??Technology Ethics

Empowering Industry and Creating Enduring Value(The company resolutely prohibits any research activities that violate ethical standards and remains committed to prioritizing the governance of technological ethics.）

??Contribution to Society?Rural Revitalization

Bene?ting the People and Ful?lling Responsibilities with Kindness

（The Company's investment in rural revitalization is relatively small and does not constitute a material risk.）

Bene?ting the People and Ful?lling Responsibilities with Kindness

（The Company's investment in rural revitalization is relatively small and does not constitute a material risk.）

DimensionS/NTopicsCorresponding Section

Indexes

Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. ?? - Sustainability Report (for Trial Implementation) Topic Index Table

Ecosystem and Biodiversity Protection

Nurturing the Ecosystem and Advancing Sustainably Through Green Development（The Company's investment related to ecological protection is relatively small and does not constitute a material risk.）?Environmental

SustainableDevelopment

Related

Governance

Social

???? Environmental, Social, and Governance (ESG) ReportAnnex??

???? Environmental, Social, and Governance (ESG) ReportAnnex??

About This ReportMessage from the ChairmanSustainable Development Highlights in ????

About Solex

ResponsibilityFocus-Special Topics

SustainableDevelopment Governance

?-?/?-?/?-?/?-??-?????-?/???-?/???-?/???-?/???-?Company Pro?leBusiness Operations

Industry LayoutBrand DevelopmentMilestones in ????Major Honors in ????Deepening Industry Focus and Strengthening Strategic Layout,Integrating into the Industry for Shared Development

?-??-?/?-??-?/?-??-??-??-??-?

Chapters and SectionsGRI Sustainability Reporting Standards ("GRI Standards")???? GRI Sustainability Reporting Standards ("GRI Standards") Topic Index Table

ESG Management FrameworkInformation Reporting Mechanism

ESG GoalsDue DiligenceESG Risk ManagementMateriality AssessmentCommunications with Stakeholders

?-?/?-??/?-??/?-??/?-??

?-??-??//?-?/?-?/?-??-??

Self-DeterminedDisclosure Topics

????????????

Low-carbon ProductsProtection of Shareholders’ Rights and InterestsStandardized corporate governance

Tax ComplianceRisk ManagementESG Governance

Empowering Industry and Creating Enduring ValueBuilding a Solid Governance Foundation with Integrity and DiligenceBuilding a Solid Governance Foundation with Integrity and DiligenceBuilding a Solid Governance Foundation with Integrity and DiligenceBuilding a Solid Governance Foundation with Integrity and Diligence

Sustainable Development Governance

DimensionS/NTopicsCorresponding Section

?????? Environmental, Social, and Governance (ESG) ReportAnnex

Building a Solid GovernanceFoundation withIntegrity and Diligence

Corporate GovernanceCompliance Operation and Risk ManagementInvestor Relations Management and Shareholders’ Rights and Interests

Business Ethics

?-?/?-??/?-??/?-??/?-??/?-??/?-??/???-?

???-?/???-??-??/?-???-??/???-?/???-?/???/?

Empowering Industryand Creating Enduring Value

Innovation-drivenProduct and Service Safety and QualityInformation Security and Privacy Protection

Supplier Management

???-????-?/???-?/???-?/???-?

???-????-?/???-?/???-?

/Key PerformanceIndexesAssurance ReportFeedback

Bene?ting the People andFul?lling Responsibilities with Kindness

Future Outlook

Annex

Public WelfareRural Revitalization

???-?/???-?/???-????-?/////

Attracting Talentand Building Unity

Protection of Employees’ Rights and Interests

Occupational Health and Safety

?-?/???-?/???-?/???-?/???-?/???-?/???-?/???-?/???-????-?/???-?/???-?/???-?/???-?/???-?/???-?/???-?/???-?/???-??

Nurturing the Ecosystem andAdvancing SustainablyThrough Green Development

Response to Climate ChangeEnvironmental Compliance Management

Resource UtilizationPollutant EmissionsImplementation of Green OperationProtection of Ecosystem and Biodiversity

???-?/???-?/???-?/???-?/???-?

?-?????-?/???-?/???-?/???-?/???-?/???-?/???-?

???-?/???-?/???-?/???-?

/???-?/???-?

Chapters and SectionsGRI Sustainability Reporting Standards ("GRI Standards")

Assurance Report

?????? Environmental, Social, and Governance (ESG) ReportAnnex

Dear reader,Thank you for reading this report! This is the ???? Environmental, Social, and Governance (ESG) Report published by Solex. In order to continuously improve our ESG management work and enhance our ability to ful?ll social responsibilities, wesincerely hope that you will evaluate this report and provide your valuable opinions.

Thank you again for your understanding and support of our work!

?.Which of the following stakeholders is most relevant to you in relation to Solex??.Your overall assessment of the report:

?.Your comments on the layout of this report:

?.How do you rate the information, data, and completeness disclosed in this report??.What aspects of the report do you think need improvement??.What topics in the report are of most interest to you? (Multiple choices)?.What other suggestions do you have for this report?

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????-???????IRM@solex.cnContact information

??????? Environmental, Social, and Governance (ESG) ReportAnnex