invent

O?cial website：https://www.solex.cn/Tel.：0592-6192666Address: No. 298, Yangguang West Road,Haicang District, Xiamen City, Fujian Province

ESGESG

2024 Environmental, Social, and Governance (ESG) ReportXiamen Solex High-tech Industries Co., Ltd.

Stock Code 603992

About SolexCompany Pro?leCorporate CultureBusiness LayoutMilestones in 2024Major HonorsMembership in Industry Associations

Standardized GovernanceBolstering Steady Develop-mentGovernance through the GeneralMeeting of Shareholders, Board ofDirectors, and Board of SupervisorsRisk Control and Internal ControlInformation Disclosure and InvestorRelations ManagementBusiness Ethics

CONTENTS

Table of Contents

Opening

About This ReportMessage from the ChairmanSustainable DevelopmentHighlights in 2024

PostscriptionAnnexKey PerformanceIndexesFeedback

Energy Saving and CarbonReduction for Green Develop-ment

Response to Climate ChangeEnvironmental ComplianceResource Utilization

Innovation for Quality, Respon-sibility FirstInnovation-drivenProduct QualityProtection of Customers' Rights andInterestsInformation Security and PrivacyProtectionSupply Chain Management

Working Together for SuccessProtection of Employees’Rightsand InterestsTraining and DevelopmentOccupational Health and Safety

Giving Back to Society, Advanc-ing Public Welfare Together

Social WelfareRural Revitalization

ESG ManagementESG Governance SystemResponse to SustainableDevelopment GoalsMateriality AssessmentAnalysis of Stakeholders

Responsibility Focus - SpecialTopicsAdvancing Green and IntelligentUpgrades, Leading Development

About This Report

inventXiamen Solex High-tech Industries Co., Ltd.

IntroductionThis is the 5th Environmental, Social and Governance Report ("ESG Report") publicly released by Xiamen SolexHigh-tech Industries Co., Ltd. It objectively discloses to stakeholders such as shareholders, employees, govern-ments, clients, and consumers the e?orts and achievements made by Solex in aspects such as safety production,environmental protection, social welfare, corporate governance, and talent development.

Access to this Report

You may access and download the electronic version of this report at the websites of Xiamen Solex High-techIndustries Co., Ltd. (https://www.solex.cn/), Shanghai Stock Exchange (www.sse.com.cn) or cninfo (www.cnin-fo.com.cn) to learn more information about the Company.

Data Sources and Reliability AssuranceData sources used in this report include public data from government agencies, and Solex's o?cial documents,statistical reports and third-party questionnaire surveys, which have been collected, audited and summarized bythe Company's functional departments and operating units. This report doesn’t contain any false records,misleading statements, or material omissions. For any discrepancy between the data in this report and that in theannual report, the data in the annual report shall prevail. Unless otherwise speci?ed, all amounts in this report areexpressed in RMB.Reporting Period

The Reporting Period of this report is consistent with that of the Company's Annual Report. To improve the compa-rability and completeness, some sections of this report may be appropriately backdated to previous years orextended to 2025.Reporting Scope

The content of this report covers Xiamen Solex High-tech Industries Co., Ltd. and its wholly-owned and controlledsubsidiaries. Unless otherwise speci?ed, the scope of this report is consistent with that of the Company's AnnualReport.

Preparation Basis

Shanghai Stock Exchange "Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operation ofListed Companies" (Revised in December 2023)Shanghai Stock Exchange "Self-Regulatory Guidelines for Listed Companies No. 14 - Sustainability Report (forTrial Implementation)"Shanghai Stock Exchange "Self-Regulatory Guidelines for Listed Companies No. 4 - Preparation of SustainabilityReports"HKEX "Environmental, Social and Governance Reporting Guide (Main Board)" (Reference Basis)China Enterprise Reform and Development Society "Guidelines for Sustainable Development Reports of ChineseEnterprises (CASS-ESG6.0)"China National Standardization Administration Committee (CNSA) “Guidelines for Preparing Social Responsibili-ty Reports” (GB/T36001-2015)UN Sustainable Development Goals (SDGs) 2030“2021 Sustainability Reporting Standards (GRI Standards)” of the Global Reporting Initiative (Reference Basis)

Appellation Description

For the ease of expression and readability, "Xiamen Solex High-tech Industries Co., Ltd." is also referred to as"Solex", "the Company" or "we" in this report. Furthermore, “country” and “government” in this report refer tothe People's Republic of China and its administrative agencies.

Short NameZhangzhou Solex

Bestter

Full NameZhangzhou Solex Smart Home Co., Ltd.

Bestter (Xiamen) Technology Inc.

Opening

Message from the Chairman

inventXiamen Solex High-tech Industries Co., Ltd.

Opening

Dear shareholders, partners, employees, and colleagues fromall sectors of society,It is with immense pride that I share the progress made bySolex in the past year in the areas of environmental, social, andgovernance. The year 2024 marks a breakthrough year inChina's sustainable development information disclosure.Guidelines, manuals, and standards for ESG and sustainabledevelopment information disclosure have been continuouslyissued after solicitation of opinions. As a responsibleenterprise, we not only pursue economic bene?ts but alsoactively respond to societal expectations. We strive to set anexample in corporate governance, environmental protection,and social responsibility, and are committed to building ahigh-quality and sustainable future.Since its establishment, Solex has always emphasized the corevalue of "believing in the power of technological innovation."We regard technological innovation as the cornerstone of theCompany’s development. Based on outstanding technologi-cal innovation, product development capabilities, and theability to understand customer needs, we empower productvalues with intelligence, health, and green solutions, andconduct targeted research and development in technology andproducts. In 2024, the Company’s R&D investment hasreached RMB 225 million, accounting for 7.47% of revenue. Wehave 818 technical personnel and our R&D team is expandingyear by year. As of December 31, 2024, the Company holds1,337 valid domestic and international patents, including 422invention patents and 756 utility model patents. It is worthmentioning that products designed by the Company’s designteam, such as faucets, smart toilets, and water ?ossers, havewon top international industrial design awards, including the"IF Design Award," "Red Dot Award," "IDEA," and "G-Mark." Theeco-friendly plastic shower slide rail won the IDEA Silver Awardfor the ?rst time. As of December 31, 2024, Solex has received170 domestic and international design awards, showcasing theCompany's extraordinary strength in industrial design.

In terms of corporate governance, we have established an ESG governance system, formed a Board Strategy and ESGCommittee, and set up an ESG working group under it. We have clearly de?ned their responsibilities and comprehen-sively planned ESG-related work, creating a vertically and horizontally integrated ESG network across the Company,ensuring that ESG concepts are deeply embedded in every aspect of the Company. At the same time, we are also contin-uously optimizing our governance structure, gradually improving the composition and operational mechanisms of theBoard of Directors, further clarifying the responsibilities and authority of each department, optimizing internal manage-ment processes, and enhancing the Company's operational e?ciency and decision-making execution. Additionally, wehave formulated compliance rules and regulations to ensure the safety and reliability of the Company's business opera-tions. We have strengthened internal audit and supervision functions, and conducted regular compliance reviews of allbusiness activities of the Company to ensure that all operations comply with national laws, regulations, and industrystandards. This e?ectively protects the legitimate rights and interests of the Company and its shareholders, creating afavorable internal environment for the Company's sound operations.In terms of environmental protection, we continue to strengthen our e?orts in energy conservation and emission reduc-tion. By adopting advanced environmentally friendly production technologies and equipment, we have upgraded ourproduction processes. At the same time, we actively carry out pollution prevention and control measures to control theemission of pollutants such as exhaust gases and wastewater and properly dispose of waste to ensure environmentalsafety. Moreover, we are accelerating the use of clean energy, increasing investments in and applications of solarenergy, and gradually achieving a green transformation of the energy structure. In July 2024, the Phase II of the roofphotovoltaic project of the subsidiary Zhangzhou Solex was successfully connected to the grid, achieving photovoltaicpower generation and further optimizing the energy structure.We always uphold our social responsibilities, and make every e?ort to safeguard employees' rights and interests.employee rights and continuously improve our employee welfare system. We o?er not only competitive salaries andcomprehensive social security bene?ts but also a variety of employee care programs. These include support for employ-ees in need, protection of female employees' rights, attention to employees' mental health, and the organization ofcultural and sports activities, ensuring a holistic approach to the physical and mental well-being of our employees. Weattach great importance to employees' career development and have established a systematic training system andcareer advancement channels. We o?er various professional skills and management training courses, encouragingemployees to continuously learn and grow, thus achieving an organic integration of individual value and corporatedevelopment. Additionally, we are committed to public welfare investments, covering areas such as education andassistance for people with disabilities. Through ?nancial and material donations of funds and goods, we strive toaddress social issues and promote social equity.Finally, I would like to express my gratitude to all the employees and partners who have worked hard for the develop-ment of the Company and to our shareholders and all sectors of society for their trust and support. Let us join hands andembark on a new chapter of sustainable development together!Thank you, everyone!

Chairman of Xiamen SolexHigh-tech Industries Co., Ltd.

Economic Performance

Sustainable Development Highlights in 2024

RMB 3,014,989,600Operating Income

RMB 4,364,103,600

Total Assets

2times

General Meeting of Shareholders Convened

4,877

Total number of employees

98.69%

Employee SatisfactionRMB 225,113,700

Investment in R&D

98.76%

Product Percent of Pass

RMB1,040,000

Total Investment in Data Security

RMB6,873,500Total Investment in Safety Production

RMB109,400Total Public Welfare Input

RMB10,945,000

Total Environmental

Investment

5,044,965 kWh

PV Generation

689.02tCO2e

Greenhouse Gas Emission Reduction

2.20tCO2e/10,000 yuan of output value

Greenhouse Gas Emission Intensity573,813 tons

Total Water Consumption

1.69 tons/10,000 yuan of output value

Water Consumption Intensity257,455.53 tce

Total Energy Consumption

0.76 tce/10,000 yuan of output value

Energy Consumption Intensity

33.33%

Percentage of IndependentDirectors in the Board of Directors

8times

Meetings of the Board of Directors Convened

7times

Meetings of the Board of Supervisors Convened

44.44%

Percentage of Female Directorsin the Board of Directors

1.10 yuan/share

Basic Earnings per ShareRMB 446,415,000

Net Pro?t Attributable toShareholders of the Listed Company

RMB 63,686,300

Total Tax Payment

RMB 493,198,500

Total Pro?t

(For detailed information on the Company’s economic performance, please refer to the 2024 Annual Report of Solex.)

inventXiamen Solex High-tech Industries Co., Ltd.

Governance PerformanceEnvironmental PerformanceSocial Performance

Opening

About SolexCompany Pro?le

Founded in 2004, Xiamen Solex High-tech Industries Co., Ltd. (SHA: 603992) insists on integrating R&D innovationand industrial design into products, with the "Intelligent Hardware IDM (Innovation/Design/Manufacture) SharedPlatform" as its compass and capitalizing on its excellent technological innovation, product development and userdemand mastery capabilities. With the concept of model, manufacturing, and technology sharing, it focuses on theR&D design and intelligent manufacturing of IDM products in such categories as kitchen & bathroom and health,beauty and health, and emerging intelligent health hardware. It aims to enhance the coverage of products inmarket segments, and spares no e?ort to provide high-value added IDM hardware products with "innovation,design, and manufacture" for professional well-known brands, large chain retailers and brand e-commerce playersaround the world.The Company has received eight national-level honors, including: "High-tech Enterprise", "National IntellectualProperty Demonstration Enterprise", "National Enterprise Technology Center", "Service-Oriented ManufacturingDemonstration Enterprise", "National Green Factory", "National Industrial Design Center", "Postdoctoral ResearchStation", "Solex Famous Trademark". The innovative products designed by the Company's design team have won170 domestic and international design awards, including top global industrial design awards such as the Red DotAward (Germany), iF Design Award (Germany), IDEA Award (United States), and Good Design Award (Japan). Solex?rmly believes in the power of technological innovation. As of December 31, 2024, the Company holds 1,337 validpatents both domestically and internationally, including 422 invention patents and 756 utility model patents,demonstrating the Company's outstanding strength in innovation!

Corporate Culture

Corporate CultureMission

VisionCore Values

Enterprise Business Strategy

Insist on the IDM model, deeply explorethe human health life demand to provideB-end customers with smart, healthy,and green hardware product solutions

Empower product values with intelli-gence, health, and green solutions,based on the idea of technology sharing,lay out various segmented categoriesaround the underlying logic

Customer First, Team Legacy, Innovation andImprovement, Technology as Basics, Compliancewith Laws, Quality Assured

Create a better health life for the people throughcontinuous innovation

Maintain a single world champion and becomea leader in health hardware

Believe in the power of technological innovation

ProductStrategyCustomerStrategy

About Solex

Business Layout

The Company's main product categories include kitchen & bathroom and health products, beauty and healthproducts, and emerging intelligent health products. Its main business model is the IDM (Innovation Design Manu-facturer) model, where the Company uses its own resources to analyze and study regional market conditions andconsumer demand trends, proposes innovative product concepts, forms complete product planning solutions,and delivers product models, technical modules, or ?nished products containing the Company's patented technol-ogy and creative designs to customers. In this process, creative design of products and research & development ofrelated technical solutions are all independently completed by the Company.

Introduction to Businesses

The Company's IDM hardware business primarily engages in direct sales to speci?c customers, including interna-tionally renowned/high-end kitchen & bath, home, beauty and health brands, large chain retailers, and brande-commerce platforms. The customer base covers more than 50 countries and regions worldwide, including theUS, Europe, Japan, and Australia. Currently, the Company has set up multiple production bases in Xiamen, Zhang-zhou, Vietnam, and other locations, e?ectively ensuring product delivery and supply capacity.

Domestic and Overseas Business Layout

Milestones in 2024April 27, 2024May 14-17, 2024May 22-24, 2024July 22, 2024September 13, 2024

(U.S. Time)November 12-15, 2024November 22, 2024Solex High-tech Industries (Vietnam) factory project in the Bac Tien PhongIndustrial Zone, Quang Ninh Province, Vietnam, successfully topped o?

Solex participated in the 27th Cosmoprof AsiaSolex's eco-friendly plastic slide rail Pioneer Elmo won the 2024 IDEASilver Award in the U.S.

The second phase of the Zhangzhou Solex Roof Photovoltaic projectwas completed and successfully connected to the grid

Solex participated in the 28th China Beauty ExpoSolex participated in the 28th Kitchen & Bath ChinaFocusing on kitchen & bathroom and health space scenarios,the main products include shower systems, micro-bubbleshowers, micro-current showers, smart care faucets, smarttoilets, and smart bathroom cabinets.

Kitchen & Bathroom and Health

Focusing on skin care and testing, oral care testing, haircare, and other scenarios, the main products includecommercial analyzers, facial cares, hair removal devices,beauty shower heads, hair care combs, smart water?ossers, and AI electric toothbrushes.

Beauty and Health

Focusing on the categories and scenarios of smart sleepmonitoring and smart ?tness, the Company has currentlydeveloped products such as smart anti-snoring pillows,sleep monitors, and smart yoga mats.

Emerging Intelligent Health

The groundbreaking ceremony for Solex High-tech Industries (Vietnam) factoryproject was held in the Bac Tien Phong Industrial Zone, Quang Ninh Province,Vietnam, with an initial construction area of over 50,000 square meters

About Solex

invent

Xiamen Solex High-tech Industries Co., Ltd.

Major Honors

"Future Unicorn" Innovation Enterprisein the Core Digital Economy Industry

of Fujian Province

Xiamen Enterprises and EntrepreneursAssociation, School of ManagementXiamen University, Xiamen Daily,Xiamen Media Group

Fujian Provincial Bureau of Data

Management

Top 10 Xiamen IP Enterprises

June 2024

November 2024

Top 100 Private ManufacturingEnterprises in Fujian Province

Xiamen Enterprises and EntrepreneursAssociation, School of ManagementXiamen University, Xiamen Daily,Xiamen Media Group

Fujian Federation ofCommerce & Industry

Top 10 Xiamen Green Enterprises

Ranked 71st

Ranked8thRanked 3rd

Ranked38th

Ranked 12th

Ranked 82nd

Ranked20thRanked 69th

September 2024

November 2024

Specialized and SophisticatedSmall and Medium-sized Enterprise

in Fujian Province

Fujian Provincial Departmentof Industry and Information Technology

Xiamen Federationof Industry and CommerceTop 100 Xiamen Private Enterprises

October 2024

November 2024

Top 100 Strategic EmergingIndustry Enterprises in Fujian

Xiamen Federationof Industry and Commerce

Fujian Enterprises and EntrepreneursConfederation, Fujian Academyof Social Sciences, Fujian Media Group

Top 20 Xiamen PrivateTechnology Innovation Enterprises

November 2024

November 2024

Top 100 Xiamen Enterprises

Xiamen Federationof Industry and Commerce

Xiamen Enterprises and EntrepreneursAssociation, School of ManagementXiamen University, Xiamen Daily,

Xiamen Media Group

Top 20 Xiamen PrivateManufacturing Enterprises

November 2024

November 2024

About Solex

Zhangzhou Changtai District High-tech Enterprise

Association?Vice PresidentZhangzhou Solex Smart Home Co., Ltd.

Membership in Industry Associations

Standardization Committee of China Building Ceramic

and Sanitaryware Association?Member

Xiamen Solex High-tech Industries Co., Ltd.

Xiamen Bath and Kitchen Association?Vice PresidentXiamen Solex High-tech Industries Co., Ltd.

Xiamen Industrial Design Association?Vice PresidentXiamen Solex High-tech Industries Co., Ltd.

Standardization Committee of XiamenBath and Kitchen Association?Member

Xiamen Solex High-tech Industries Co., Ltd.

Xiamen High-Tech Development Association?Standing DirectorXiamen Solex High-tech Industries Co., Ltd.

Xiamen Association for Quality?Vice PresidentXiamen Solex High-tech Industries Co., Ltd.Xiamen Standardization Association?DirectorXiamen Solex High-tech Industries Co., Ltd.

Xiamen Intellectual Property Association?Vice President

Xiamen Solex High-tech Industries Co., Ltd.

China National Hardware Association

?Standing DirectorXiamen Solex High-tech Industries Co., Ltd.

Kitchen and Bathroom Hardware Standardization Sub-committee ofNational Committee for Standardization of Hardware Products?Member

Xiamen Solex High-tech Industries Co., Ltd.Bathroom & Sanitary Society of China Building Ceramic

and Sanitaryware Association?DirectorXiamen Solex High-tech Industries Co., Ltd.

Patent Protection Association Of China?DirectorXiamen Solex High-tech Industries Co., Ltd.China Industrial Design Association?DirectorXiamen Solex High-tech Industries Co., Ltd.

Fujian Industrial Design Association?Vice President

Xiamen Solex High-tech Industries Co., Ltd.

Xiamen Association For Medical Devices

?Standing Director

Xiamen Solex High-tech Industries Co., Ltd.

About Solex

Case Study：Eco-friendly Shower Slide Rail “Pioneer Elmo”

In recent years, in response to market changes, Solex hasalways adhered to technological innovation as the core drivingforce. The Company combines customer needs with innova-tive ideas and integrates the concept of sustainable develop-ment with design processes to create high-value-added IDMproducts with "innovation, design, and manufacture".Currently, multiple innovative products designed by theCompany have won top international industrial designawards. As of December 31, 2024, Solex has received 170domestic and international design awards, showcasing itsextraordinary strength in the ?eld of industrial design.Furthermore, the Company's factories and supply chains haveobtained green certi?cations, injecting green energy intoSolex’s industrial design innovation, supporting the creationof more eco-friendly and sustainable products and productionmodels, and further highlighting Solex's green competitive-ness and social responsibility in the industry.

The eco-friendly plastic shower slide rail "Pioneer Elmo" developedby Solex won the 2024 IDEA Silver Award in the U.S. It uses recycledcomposite plastics as raw materials, maintaining the hardness andtoughness of common plastics, while also setting an example forpromoting resource recycling in the industry. The surface treatmentprocess of this slide rail avoids metal contamination, ensuringlong-term reliability and stability of the product while re?ectingSolex’s dedication to product quality and user experience.

With the improvement of living standards and the upgrading of consumer concepts, people’s demands for home environments are also increasing daily. As the most private space inthe home environment, the decoration and accessories of the kitchen and bathroom are closely related to the quality of family life. Therefore, kitchen and bathroom products havebeen receiving increasing attention from consumers, becoming essential necessities in daily life.In recent years, the government has vigorously advocated green and environmental protection and the upgrading of electronic products. The proposed promoting new consumption scenarios for health-oriented bathroom products, smart sleep, air puri?cation, and supporting enterprises' per-sonalized design and ?exible production. Currently, the application of smart and green technologies in the kitchen and bathroom market has become an industry trend, such as smarttoilets and sensor faucets. At the same time, as consumers pursue higher quality of life, the trend in kitchen and bathroom products is evolving from basic functionality to a focus onpersonalization and comfort. The competition in the industry is ?erce, and technological innovation and sustainable development will be the key driving forces for the future.By empowering product values with intelligence, health and green, Solex focuses on energy saving, water conservation, zero PVC, and recycled materials to make products greener,reduce the environmental impact throughout the product life cycle, and improve the green quality of products to meet customers' demand for eco-friendly products. Additionally, theCompany actively participates in industry events and exchanges, engages in deep discussions about innovative ideas, and explores breakthroughs in product technologies to injectvitality into the development of the industry.

Practicing Innovative Ideas, Creating Green Products

Green Supply Chain Certi?cation

Green Factory Certi?cation

Eco-Friendly PlasticShower Slide Rail"Pioneer Elmo"

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Xiamen Solex High-tech Industries Co., Ltd.

Responsibility Focus - Special TopicsAdvancing Green and Intelligent Upgrades,Leading DevelopmentResponsibility Focus - Special Topics

Several Measures for Promoting the Con-

sumption of Electronic Products

Case Study: Empowering by AI Technology, Starting A New Trend in Beauty and HealthCase Study: Smart & Green Philosophy for A Quality Life

Exploring Industry Development, Leading Trends with InnovationAdhering to the concepts of intelligence, health, and green, Solex continues to break traditional household product boundaries. With relentless innovation as its driving force, the Company consistently injects high-value energy intoproducts. On the path to excellence, Solex has successfully developed a series of leading smart products that not only lead the industry trends but also bring users unprecedented convenience and comfort. In order to better understandconsumer needs and continuously expand the boundaries of product innovation, Solex actively participates in industry exhibitions, engaging in in-depth exchanges and collaborations with industry leaders to explore new trends andopportunities for the development of the industry.

On May 14-17, 2024, Solex participated in the 28th Kitchen & BathChina. At this exhibition, adhered to the philosophy of "intelli-gence, health, and green," Solex created four major exhibitionareas: shower space, kitchen space, basin beauty space, and toiletspace. Focusing on smart bathroom and kitchen water applica-tions, the Company showcased products such as water-savingshowers, home soda machines, care faucets, water puri?cationfaucets, smart toilets, smart beauty mirror cabinets, and liftingmirror cabinets. With its deep insights into market demand,continuous technological innovation, and human-centered designphilosophy, Solex brought an unprecedented experience tovisitors, leading the trend of future home living.

Solex showcased its facial cares, hair removal devices, innovative toothbrushes, and water ?ossers at the 28th China Beauty Expo in Shanghai andthe 27th Cosmoprof Asia in Hong Kong. These two in?uential and large-scale beauty industry events gathered top brands and high-quality companiesfrom around the world, showcasing the latest products and cutting-edge technologies, and jointly discussing the future development trends of thebeauty industry.The beauty and health category has become the Company's second growth driver. In the digital era, the Company has integrated AI algorithms intobeauty devices to meet users' smart skincare needs and enhance the product experience. Solex, through continuous innovation, has furtherdeveloped technologies such as radiofrequency, microcurrent, and ultrasound for skin and hair care. Additionally, the Company integrates imageprocessing technology and proprietary AI algorithms for applications such as skin detection and oral examination.Through deep participation in these two exhibitions, Solex not only gained valuable industry insights, providing fresh ideas and inspiration forupgrading the beauty and health category, but also seized the opportunity to engage in in-depth communication with numerous internationallyrenowned brands and establish deeper connections with industry peers.

Solex at the 28th China Beauty ExpoSolex's debut at the Cosmoprof Asia

Solex at the 28th Kitchen & Bath China

Responsibility Focus - Special Topics

Case Study: ESG TrainingESG ManagementESG Governance SystemAligned with its green innovation strategy, Solex is committed to building a sustainable ESG governance system.The Company has formulated the established the Board Strategy and ESG Committee, and set up an ESGworking group to plan and coordinate the Company's ESG-related work in the future. The Company continuouslyenhances ESG governance, creating greater value for shareholders, employees, customers, and society, whilee?ectively driving the Company's practices and development in the ESG ?eld.

Review and approve the Company's ESG development strategy and goals, major issues,management structure, management systems, etc.;Review the Company's ESG report.Research the Company's ESG goals, strategy, governance structure, and other relatedmatters, and make recommendations to the Board of Directors;Identify ESG risks and opportunities that have a signi?cant impact on the Company'sbusiness and guide management in taking responsive actions;Supervise the establishment of ESG goals, implementation plans, performance, review theprogress towards achieving ESG goals, and propose improvements;Review the Company's ESG-related disclosure documents.Implement the Company's ESG strategy and goals, coordinate various departments inimplementing 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 monitorESG policy developments;Summarize ESG work results, report progress to the committee in a timely manner, andpropose improvement suggestions.

On November 7, 2024, the Company specially invited a professional organization to hold an ESG trainingsession for the ESG Working Group. During this training, the group members delved into the latest regula-tions and policies issued by the stock exchanges, and experts provided detailed analysis and interpretationof the Company's ESG ratings. These sessions not only helped the members gain a comprehensive under-standing of the latest trends and developments in ESG but also enhanced their ability to comprehend andapply ESG practices.

Boardof Directors

ESGWorking Group

Specialized Training on ESG

Board Strategy

and ESGCommittee

Solex's ESG Management Structure:

ESG Management

Board Strategy and ESG Committee Rules and the Environmental, Social, andGovernance (ESG) Management System,

The Company has established an employee mutual aid fund to provide?nancial assistance to employees in di?culty. At the same time, theCompany actively participates in public welfare, donating to organiza-tions in need and promoting social harmony and progress.The Company regularly organizes a variety of cultural and sportsactivities, conducts regular employee health check-ups, provides laborprotection equipment, and creates a safe and healthy working environ-ment to ensure that employees can work and live in a caring atmosphere.The Company has developed a complete talent training system andestablished a cloud learning platform to help employees successfullycomplete various training tasks, o?ering them the right to self-learnaccording to their job needs and personalized interests, providing unlimit-ed growth potential.The Company resolutely eliminates all forms of discrimination andviolations of female workers’ rights, ensuring that female employeesenjoy equal work opportunities and rights in the workplace.The Company actively promotes the photovoltaic power generationtechnology, and reduces dependence on fossil fuels, thereby reducingcarbon emissions.

The Company has established a complete quality management system,conducts risk and opportunity assessments for product quality, andimplements corresponding measures at key nodes throughout the productlifecycle.To respond to carbon peaking and carbon neutrality goals, the Companyactively organizes carbon inventory and energy-saving e?orts, takingpractical actions to assist in carbon emission reductions and green develop-ment.The Company regularly carries out information disclosure work, establishesand improves audit and supervision systems, and implements comprehen-sive supervision and review of daily operations to ensure that the Companyoperates in compliance with laws, regulations, and maintains integrity andhonesty.The Company has established a comprehensive supplier management system,optimizes supplier management processes through digital means, andconducts regular comprehensive evaluations and reviews of suppliers toensure that the quali?cations, product quality, delivery capabilities, andservice levels of suppliers meet the Company's standards.The Company has established a comprehensive salary and bene?tssystem and set up a dual-career development system, encouragingemployees to specialize in their ?elds and continuously re?ne their skills,achieving a win-win situation between individual value and corporatedevelopment.

Solex adopts the IDM model, developing e?cient, intelligent, low-carbon, andenvironmentally friendly products based on user needs, leading industrytrends, and has won multiple international awards, making it a benchmark forthe green transformation of the industry.The Company is committed to creating a fair and just workplace culture,ensuring that all employees have equal opportunities for promotion, expand-ing communication channels, promoting a democratic management mecha-nism, and ?rmly resisting the use of child labor and forced labor.The Company actively promotes energy-saving transformation measures,strengthens communication with surrounding communities, and strives tobuild environmentally friendly, economically e?cient, and socially inclusivesustainable cities and communities.

Response toSustainableDevelopment GoalsSolex is committed to promoting ESGprogress, focusing on implementingenergy conservation and emission reduc-tion measures, strictly controlling pollut-ant emissions, and dedicating itself togreen technological innovation to con-tribute to achieving the United NationsSustainable Development Goals.

SDGsSolex's actions

ESG Management

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Xiamen Solex High-tech Industries Co., Ltd.

Materiality Assessment Process

Materiality AssessmentThe Company closely tracks ESG ratings in the capital markets, analyzes the challenges of sustainable development based on national policies, industry trends, and its own strategy, and establishes a key issue identi?cation system. Asurvey was conducted among stakeholders in the form of questionnaires and expert judgments, with 263 responses collected. Based on this, 30 key issues were identi?ed to be the focus of the 2024 report.

Analyze based on global trends and conductmacro-environment analysis of China's indus-try development trendsAnalyze based on the industryAnalyze based on the Company's businessmodelIdentify the stakeholders of the Company andthe impacts, risks, and opportunities theCompany faces

Understand theCompany'sbackground

Analysis methods

Based on the Guidelines for SustainableDevelopment Reports of Listed Companiesissued by the stock exchange, refer to theGlobal Reporting Initiative (GRI), SustainableDevelopment Goals (SDGs) of the UnitedNations, SASB, MSCI, as well as related issuesfrom domestic and international peers,establish a sustainable development issuelibrary.

Conductpreliminaryissue screening

Analysis methods

Assess the impact materiality:

Identify the potential or actual positive ornegative impacts of each issue on the exter-nal environment, society, and economy, con-duct a survey among stakeholders in the formof questionnaires and expert judgments.

Assess the ?nancial materiality:

Through the analysis of impacts, dependen-cies, and other factors, in combination withquestionnaires and expert judgments and riskidenti?cation and evaluation lists fromdepartments, identify and assess risks andopportunities under each relevant issue, andidentify issues with ?nancial materiality.

Assess the mat-eriality of issues

Analysis methods

Form an issue list based on impact materiali-ty and ?nancial materiality, and ensure thatthe relevant issues are transparently, fairly,and comprehensively disclosed in the report.

Identifymaterial issues

Analysis methods

1234

ESG Management

Matrix of Material Issues

Dual materiality issuesImpact materiality issues

Financial materiality issuesRelevant issues

Environmental compliance managementenergy utilizationResponse to climate changecircular economywater resource utilizationpollutant emissionswaste disposalBiodiversity management low-carbon productsemployee rights protectionemployee training and developmentoccupational health and safetyinnovation-driventechnology ethicsproduct safety and qualitycustomer 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

Importance to the company's ?nancial impact

Importance to economic, social, and environmental impacts

Dual materiality issues

Impact materiality issues

Relevant issues

Response to climate change, innovation-driven, product safety andquality, responsible supply chain, energy utilizationEnvironmental compliance management, circular economy, waterresource utilization, pollutant emissions, waste disposal, low-carbonproducts, employee rights protection, employee training anddevelopment, occupational health and safety, customer rightsprotection, information security and privacy protection, shareholderrights protection, standardized corporate governance, anti-commer-cial bribery and anti-corruption, anti-unfair competition, tax compli-ance, risk management, stakeholder communicationBiodiversity management, technology ethics, equal treatment ofSMEs, social contribution, rural revitalization, due diligence, ESGgovernance

ESG Management

Analysis of StakeholdersThe Company focuses on communication and exchange with all stakeholders, establishing regular communication channels to ensure timely and accurate understanding of stakeholders' expectations and demands, jointly promoting theCompany's steady development.

Stakeholder

Category

DemandsandExpectations

Communicationand

Response

Governmentand regulatory agencies

Suppliers and PartnersInvestors and ShareholdersEmployees

Public welfareand community organizationsCustomersWin-win cooperationPromotion of industrialdevelopmentEqual reciprocitySupplier Management

Building of cooperationplatformsStrengthening innovationand R&DResponsible industry chainBuilding of a green supply chain

Improvement of CorporateGovernanceReturn and growthTimely information disclosureRisk Management

Product InnovationFostering open communicationchannelsProduct quality assuranceProtecting the rights andinterests of customers

Employment PromotionPublic welfare and charity

Provision of EmploymentOpportunitiesConducting publicwelfare activitiesStrengthening productinnovation and R&DImprovement ofcommunication e?ciencyQuality and safetymanagementOptimization of service processes

Employee CareDiversi?ed trainingCareer Development andPromotionCompensation and bene?tsHealth and safetyPerformance appraisalsUpholding the Rights andInterests of EmployeesOrganization of cultural activitiesRegularly organizationof training activitiesImprovement of employeecareer advancement mechanismsEnhancement of compensationand bene?tsRegular occupational healthcheckupsImprovement of performanceappraisalsEmployee communication andfeedback mechanisms

Optimization of governancestructureDriving improved businessperformanceImprovement of informationdisclosure systemImprovement of Internal Control

Legal complianceEnvironmental protectionBusiness ethics andanti-corruption

Complying with laws andregulationsEcological environmentalprotection, ful?llment ofsocial responsibilitiesSupervision and inspection

ESG Management

Standardized GovernanceBolstering SteadyDevelopment

SDGs

Our PhilosophySolex has adhered to the principle of prudent governance. By establish-ing a governance structure with clear rights and responsibilities, coordi-nated checks and balances, the Company continuously improves thegovernance system, enhances governance capabilities and levels,ensures the legality and compliance of the Company's operations,protects the rights of shareholders and stakeholders, and achievessustainable development of the enterprise.Our ActionsGovernance through the General Meeting of Shareholders, Boardof Directors, and Board of SupervisorsRisk control and internal controlInformation disclosure and investor relations managementBusiness Ethics

The Board of Directors had 9 members, including: 3 independent directors;4 female directors, accounting for 44.44%;

The Board of Directors held 8 meetings and passed 52 resolutions.The Audit Committee of the Board of Directors held 5 meetings and deliberated 11 proposals;The Nomination Committee of the Board of Directors held 0 meetings;The Remuneration and Assessment Committee of the Board of Directors held 2 meetings and deliberat-ed 4 proposals;The Strategy Committee of the Board of Directors held 2 meetings and deliberated 4 proposals.

inventXiamen Solex High-tech Industries Co., Ltd.

Board of Directors

Strategy and ESGCommittee

Audit Committee

AuditDepartment

NominationCommitteeRemunerationand AssessmentCommittee

Board of Supervisors

Secretary of theBoard of DirectorsSecurities A?airs

Department

Environ-mentalManage-mentCenterHumanResourcesDepart-ment

Equip-mentProcure-mentCenter

CategoryDivision

StrategicInvest-mentDepart-ment

LegalDepart-ment

FinanceCenterAdminis-trationCenter

General Meeting of Shareholders

Board of Directors

General Manager

Governance through the General Meeting ofShareholders, Board of Directors, and Board of SupervisorsSolex has formulated the the the and other systems in accordance with relevant laws and regulations such as the("Company Law") and the("Securities Law"), actively constructing a relatively complete modern governance system and structurefor listed companies. The Company has established the General Meeting of Shareholders, Board of Directors, Boardof Supervisors, professional committees, and management team, with clear responsibilities and checks andbalances among various functional institutions to promote the Company's standardized operations.

The Company has set up the Board of Directors, which is accountable to the General Meeting of Shareholders. TheBoard of Directors is responsible for executing the resolutions of the General Meeting of Shareholders, deciding theCompany's business plans and investment proposals, etc., ensuring compliant operation of the Company. TheBoard of Directors consists of four specialized committees: the Audit Committee, the Nomination Committee, theRemuneration and Assessment Committee and the Strategy and ESG Committee. These committees have clearresponsibilities and perform their duties in accordance with the and related working systm-s, to contribute to the Company's standardized operation.The Company attaches great importance to the diversity of members in the Board of Directors, and gives fullconsideration to factors such as gender, age, educational background, professional experience, and skills. Current-ly, the Company's 9 board members have expertise in multiple ?elds, providing strong support for the scienti?cand e?cient decision-making of the board.During the Reporting Period,

Organizational Structure of Solex

IT Center

Key Performance

Standardized Governance Bolstering Steady Development

Articles of Association,Rules of Procedure for Shareholders' Meetings, Rules ofProcedure for Board Meetings,Company Law of the People's Republic of ChinaSecurities Law of the People's Republicof China

Articles of Association

Compliance Risk Management Process

General Meeting of Shareholders

Risk Control and Internal ControlThe Company has set up the Board of Supervisors, which acts as a supervisory body and is accountable to all share-holders. The Board of Supervisors carries out their work in accordance with the the and other provisions, inspects and supervises the Company's major matt-ers, ?nancial status, and the performance of duties by the directors and the management team, and safeguards thelegitimate rights and interests of the Company and all shareholders.

To ensure the Company's business compliance and stable operation, the Company identi?es, classi?es, andassesses risks during its operations, and strengthens the daily monitoring of compliance risks and the implementa-tion of risk response strategies. To this end, the Company has formulated thethe the the Compliance Re-view and Reporting Management System and other compliance rules and regulations, to ensure the safety andreliability of business operations.

The Company has set up the General Meeting of Shareholders as the highest authority, and through the establish-ment of the and other system documents, de?ned the responsibilit-ies and powers of the General Meeting of Shareholders, ensuring decision-making power on major matters likebusiness policies and changes to the Articles of Association, protecting shareholders' rights to information andparticipation.

RiskIdenti?cation

RiskAssessment

RiskResponse

RiskMonitoringRisk identi?cation per-sonnel use methodssuch as questionnairesurveys, Delphi method,sensitivity analysis,and scenario analysisto identify compliancerisks, and submit themto the Internal ControlDepartment for sum-mary and risk data-base establishment.

Risk managementdepartments analyzeand rate risks based onoccurrence probabilityand impact degree,determine risk levels,and submit them tothe Internal ControlDepartment for veri?-cation.

Risk managementdepartments selectrisk response strate-gies and plans such asrisk retention, avoid-ance, mitigation, ortransfer for di?erenttypes of risks, andafter being summa-rized by the InternalControl Department,submit them to theCompany for approv-al.

Risk managementdepartments continu-ously monitor theimplementation of riskresponse plans, regu-larly summarize andanalyze, and continu-ously improve riskcontrol systems andprocesses.

Key Performance

During the Reporting Period

Key Performance

During the Reporting Period

Key Performance

During the Reporting Period

Board of Supervisors

Compliance Risk Management

The Board of Supervisors has 3 members,including: 1 employee supervisor;

3 female supervisors, accounting for 100 %;The Board of Supervisors convened 7 meetings and deliberated 36 proposals in total.

the Company convened a total of2 General Meetings of Shareholders,during which 17 proposals were deliberated and adopted.

the Company provided7 sessions of training on internal risk,with a total of 12 participants and for a total training duration of 14 hours.

Standardized Governance Bolstering Steady Development

Articles of Association,of Procedure for the Supervisory Board

Rules

Rules of Procedure for Shareholders' Meetings

Compliance Management Manual,Compliance Obligation Management System,Compliance Risk Management System,

Financial ManagementTax Management

inventXiamen Solex High-tech Industries Co., Ltd.

Internal Control Governance Framework

The Company has formulated the the theand other systems to ensure that the Company's operations and core business systems run in an orderly ande?cient manner, while e?ectively preventing and controlling related risks. The Company also focuses on internalcontrol matters in social responsibility areas like safety production, quality control, environmental protection,resource conservation, employee rights protection, and public welfare donations, actively ful?lling social responsi-bilities and improving corporate governance and risk management capabilities.

The Company has set up an audit department under the Audit Committee as the internal audit body, whichhandles routine audits, special audits, and complaint handling. During the Reporting Period, the Companyconducted spot checks and audits on the use and management of seals in various business divisions, the imple-mentation of use and control processes of parts samples, and warehouse risk management, further standardizingthe seal management process and improving the control process for parts samples. In addition, the Company hiredthird-party professional intermediary institutions for independent internal audits each year and issued the to enhance the objectivity and credibility of the audits, and improve the e?ectiveness of the Company's internal control system.

To improve the Company's tax management, strengthen the tax management organization-al system, and prevent and control tax risks, Solex has formulated the Tax ManagementMeasures in accordance with thethe and othertax laws and regulations, to standardize the entire process of tax related business research,accounting, declaration, monitoring, planning, evaluation, forecasting, and reporting,ensuring the Company pays taxes lawfully and in full.

The Company focuses on improving the construction of the ?nancialmanagement system, developing the andother systems, strengthening the construction of the ?nancial team,enhancing work e?ciency, fully leveraging ?nancial functions to providesolid support for business management and economic growth, contribut-ing to the Company's steady development and value enhancement.

Boardof Directors

Responsible for the formulation, implementation, and improvement of internalcontrol systems, and regularly conducting comprehensive inspections and e?ectevaluations of internal control status of the Company.

Boardof Supervisors

Responsible for supervising the implementation of the Company's internalcontrol systems, ordering the Company to rectify identi?ed internal controlde?ciencies, and reporting the implementation of the Company's internal controlsystems to the General Meeting of Shareholders.

Seniormanagement

Responsible for establishing and improving the internal control system in theoperation process, and comprehensively promoting the implementation of theCompany's internal control system, and checking the development and imple-mentation of various specialized internal control systems by company depart-ments and units.

Key Performance

During the Reporting Period

Key Performance

During the Reporting Period

Internal Control Construction

the Company conducted 3audit projects,covering 8 business divisions,and identifying 38 areas for improvement,with a 100% de?ciency recti?cation rate.

Standardized Governance Bolstering Steady Development

the Company paid a total ofRMB 63,686,300in taxes.

Internal Control Manual, Internal Control System,Internal Audit System

Tax Collection and Administration Law of the People's Re-Enterprise Income Tax Law of the People's Republic of China,public of China,

Financial Management Rules

Intern-al Control Audit Report

Visit to Listed Companies

Information Disclosure and Investor Relations Management

To regulate the Company's information disclosure process and ensure theauthenticity, completeness, accuracy, timeliness, and fairness of disclo-sures, the Company has formulated the to improve the quality of information disclosure, strengthen the management of disclosure a?airs, promote the Company's standard-ized operation, protect the legitimate rights and interests of investors,and respond to regulatory requirements to ensure that the Company'sinformation disclosure behavior complies with the latest changes in lawsand regulations. Since its listing, the Company has maintained aninformation disclosure rating of B and has kept communication withshareholders, regulatory authorities, analysts, and other investorsthrough multiple channels, establishing a good corporate image in thecapital market.

The Company attaches great importance to com-munication and interaction with investors, and hasformulated the to regulate and enhance interaction with inves-tors and potential investors. The Company hasappointed the board secretary as the personresponsible for investor relations, overseeing theplanning, arrangement, and organization of variousinvestor relations activities and daily a?airs.Through close contact with investors, the Companyis committed to improving operating performanceto achieve substantial returns for investors.Key Performance

During the Reporting Period

Key Performance

During the Reporting Period

Information Disclosure ManagementCommunication with Investors

InvestorCommunication

Channels

Company announcementGeneral Meeting of ShareholdersCompany websiteInvestor hotline, emailRegular open investor forums, performance brie?ngsShanghai Stock Exchange e-interactive platformReception of various institutional research activitiesMedia interviews and reports

the Company disclosed 4 periodic reports and 86 interim reports,with a total of 148 documents posted online.

the Company hosted150 on-site investor research visits, received a total of 1,230 investors during these visits;conducted 8 interactions with investors on e-Interactive,and answered 70 investor calls;held 4 open investor forums.

Standardized Governance Bolstering Steady Development

Information Disclosure Manage-Investor Relations Management Sys-ment System,tem

The Company has formulated the and thein accordance with theAssociation and other documents to protect the legitimate rights and interests of all shareholders, especiallyminority shareholders. In addition, to establish and improve the shareholder return mechanism, the Company hasformulated the Shareholder Dividend Return Plan (2022-2024) and strictly follows these planning documents inactual operations to enhance the transparency of pro?t distribution policy decision-making, improve its operabili-ty, and actively deliver returns to investors.

The Company has formulated the and the to require employees to maintain integrity and self-discipline, prevent illegal and disciplina-ry behaviors, and has set up a discipline inspection committee as a specialized institution for discipline supervi-sion, which monitors and investigates employee violations and imposes penalties based on the severity ofviolations.

Cash Dividends in the Past 3 Years

Organizational Structure

DisciplineInspectionCommittee

The committee consists of representatives from the labor union, human resourc-es department, administration department, internal audit department, anddepartment heads. It has the authority to formulate the Integrity and Self-Disci-pline Management System and supervise, investigate, and handle violations ofthe integrity and self-discipline requirements.

Department

heads

Conduct comprehensive promotion and strict supervision of integrity andself-discipline culture for department employees, and report any violations ofintegrity and self-discipline requirements to the Discipline Inspection Committeepromptly.

All employeesof the Company.

Comply with discipline, accept supervision, and cooperate fully with the work ofthe Discipline Inspection Committee.

Business EthicsProtection of Shareholders’ Rights and Interests

Professional Integrity

Cash dividend per shareTotal cash distribution (including tax)

Unityuan/shareIn 10,000 yuan%Proportion to net pro?t attributableto shareholders of the listed company

in consolidated ?nancial statements

2022

0.20

7,859.85

30.10

2023

0.44

17,736.31

50.32

Mid-2024

0.27

11,015.69

49.79

Standardized Governance Bolstering Steady Development

Rules for the Implementation of Cumulative Votingppropriation of Company Funds by Controlling Shareholders and Related Parties

Prevention of Misa-

Articles of

Integrity and Compliance Manualment System of Solex

Integrity and Self-Discipline Manage-

To create an orderly and healthy competitive environment, the Company has formulated theand the to build a systemof integrity and fair competition. The Company's top management are responsible for supervising the complianceo?cer to create a company-wide anti-monopoly culture and establish a sound internal control system to preventmonopoly and unfair competition, and continuously monitor the Company's anti-monopoly e?orts.

The Company has formulated the Reporting and Investigation Management System and other documents, set upa reporting hotline, email, and other platforms. The Internal Control Department is responsible for handlinginternal and external reports, complaints, and reconsideration applications, verifying the matters, and formingcorresponding investigation teams. The compliance o?cer is responsible for reviewing and approving the investi-gation results, disposal reports, and reconsideration results. The Company encourages public reporting andcomplaints and also accepts anonymous reports and complaints, and maintains con?dentiality for the personmaking a report/complaint and related content to safeguard the legitimate interests of the person making areport/complaint.

Anti-corruption Measures

Anti-monopoly and Anti-unfair Competition Measures

Employees are prohibited from using the conve-nience of position to illegally take company assetsfor personal use through methods such as embezzle-ment, theft, or fraud.

Employees are prohibited from soliciting or accept-ing money or other forms of bene?ts (bribes) fromothers during business interactions or whileperforming their duties, or from o?ering bribes toothers.

Employees are prohibited from exceeding their authorityduring the performance of their duties, not followingcompany rules and procedures, handling mattersbeyond their authority, or improperly exercising theirpower to harm the interests of the Company or others.

Employees are prohibited from privately usingcompany resources for personal or others' bene?t,causing losses to the Company's interests.

The Company is prohibited from reaching or imple-menting monopoly agreements or other similarcollusive behaviors in business interactions withcompetitors, industry associations, or upstream anddownstream business partners.The Company is prohibited from engaging in orparticipating in behaviors that disrupt marketcompetition order and harm the legitimate rightsand interests of other operators or consumers.

The Company is prohibited from abusing its marketdominance to manipulate the services, quantities,or other trading conditions of goods.

The Company will proactively report any concentra-tion of undertakings that meets the reportingstandards to the enforcement agencies for anti-mo-nopoly review.

Anti-monopoly and Anti-unfair Competition

Compliance Reporting System

Standardized Governance Bolstering Steady Development

Anti-Monopoly andAnti-Unfair Competition Management System, the Due Diligence Management System,

Commercial Secret Protection Management System

Energy Saving and CarbonReduction for GreenDevelopment

SDGs

Our PhilosophySolex actively faces the challenge of climate change, strictly controlspollutant emissions, optimizes resource utilization e?ciency, promotesgreen product development and green management models, and iscommitted to creating an industry ecosystem that promotes harmoniouscoexistence between humans and nature.

Our ActionsResponse to Climate ChangeEnvironmental ComplianceResource Utilization

Responsibilities of GHG Inventory Management Organization

To e?ectively respond to the challenges posed by climate change, the Company actively supports the nationalcarbon peaking and carbon neutrality goals, continuously builds and improves the greenhouse gas (GHG) emissioninventory system, and has formulated the and established a GHG inventoryteam. The Company's Energy Department assigns a dedicated person to lead the inventory team, while otherdepartments each appoint a dedicated representative to act as team members, and the Administrative Director isdesignated as the management representative to jointly advance the tracking tasks.

Governance

As global climate change intensi?es, the enterprises face increasing climate risks, which may not only disrupt dailyoperations but also a?ect their long-term survival and development. The Company identi?es climate risks andopportunities related to its operations, conducts climate change risk management, and develops correspondingresponse measures.

StrategyResponse to Climate Change

Management Representative

Energy Department

GHG Inventory Team LeaderGHG Inventory Team Member

Responsible for approving GHG policies, emission reduction targets, and policy statements.Lead the GHG management review meetings, and listen to reports from the Energy Departmenton GHG project progress and implementation.Provide necessary resources for the smooth implementation of GHG projects.The department head is the ?rst responsible person for GHG management.Formulate GHG policies, emission reduction targets, plans, and policy declarations.Coordinate the implementation and maintenance of the ISO 14064 system, organize boundary setting,and identify the Company's GHG emission sources.Responsible for reporting the progress of the GHG project to the management representative and prepar-ing the GHG inventory and GHG report.Plan the GHG work in the plant, coordinate relevant departments to support all GHG-related matters,serve as the main contact point, and organize internal veri?cation before completing the inventory report.

Involving all departments of the Company, responsible for providing various activity data.Identify GHG emission sources within the department, verify the department's GHG activity data,calculate carbon emissions, and provide raw data.Implement GHG reduction measures in the department and supervise target achievement.

Assist various departments in setting GHG reduction targets and track implementation.Lead the completion of the annual GHG inventory, formulate and issue the GHG inventory and GHG report.

Energy Saving and Carbon Reduction for Green Development

Greenhouse Gas Inventory Procedure,

Low: 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?cantresources may be needed to recover.

Short-term: Generally refers to within 1 year after the end of the Company's sustainability reporting period (including 1 year).Medium-term: Generally refers to 1 to 5 years after the end of the Company's sustainability reporting period (including 5 years).Long-term: Generally refers to more than 5 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.

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

Risk TypeRisk DescriptionResponse Measures

Proba-bilityof Oc-curre-nce

ImpactSize

ImpactTime-frame

Value Cha-in Links ofImpact

PriorityRanking

Potential FinancialImpactPhysical RisksTransformation Risks

Acute riskChronic risk

Policy andLegal Risks

Technology Risks

Market RisksReputation Risks

Typhoon

FloodHeavy RainHigh humiditySea level riseAverage tem-perature rise

Maintenance and Updates of Production Equipment and Environmen-tal Protection Facilities: Extreme weather conditions may damagefactories, warehouses, etc., leading to production disruptions andequipment damage;Production Interruption: Extreme weather may cause power or gasoutages, interrupting production.Increased Long-term Operating Costs: Rising temperatures, humidity,etc., may require the Company to consume more electricity and fuel toregulate production environment temperatures, leading to a signi?-cant rise in energy costs;Employee Health and Safety: The rise in temperature may causeemployees to su?er from heatstroke, increasing health and safety risks,and decreasing work e?ciency.The government's increasingly strict environmental protection controlrequirements and carbon peak plans promote mandatory corporatecarbon emission disclosure and regulation, increasing compliancecosts for the Company.Transitioning to low-emission technologies will incur correspondingcosts.The risk of failure in investing in new technologies will cause losses forthe Company.If the products provided do not meet customers' low-carbon require-ments, it may result in the loss of orders.Rising raw material costs will increase procurement costs of theCompany, leading to higher product pricing, causing consumer loss.Suppliers subject to environmental administrative penalties, judicialrulings related to environmental issues will a?ect the Company's reputation.

Low

Low

Med-iumMed-iumMed-iumMed-iumMed-iumLow

High

Med-iumMed-iumMed-iumMed-iumMed-iumHighMed-ium

Short tomediumterm

Long-termMediumandlong-termMediumandlong-termMid-termMediumandlong-termShort tomediumtermShort to m-edium term

Upstream,operations,downstreamUpstream,operations,downstreamOperationsOperationsOperationsDownstr-eamOperations,DownstreamOperations

Medium

Medium

MediumMediumMediumMediumMediumMedium

IncreasedoperatingcostsDecreasedoperating incomeIncreasedoperating costsIncreasedoperating costsIncreasedoperating costsIncreasednon-operat-ing expensesDecreasedoperating income

Decreasedoperating incomeIncreasedoperating costs

Strengthen daily maintenance and repair of equipment, andconduct unscheduled inspections;Develop and implement detailed disaster response plans toensure rapid and e?ective recovery of production operationsduring disasters.Promote and implement energy alternatives to reduce carbonemissions;Formulate heatstroke prevention plans and concrete measures,and strengthen education on heatstroke prevention for allemployees.Continuously monitor and strictly comply with relevant laws andregulations, and actively respond to the latest environmentalprotection requirements in operational areas.Actively develop green and energy-e?cient products, improveresearch and development of product design capabilities, andcontinuously enhance R&D personnel reserves and capabilities.Increase R&D investment and actively communicate with custom-ers.Optimize product structure, improve production processes, andpromote the recycling of raw materials.Regularly conduct environmental compliance assessments forsuppliers and develop environmental training programs.

Energy Saving and Carbon Reduction for Green Development

OpportunityType

Opportunity explanation

Probabilityof Occurr-ence

ImpactSize

Impact Timeframe

Value Chain Linksof Impact

PriorityRanking

PotentialFinancial Impact

Response MeasuresHighHighMedium and

long-term

OperationsMedium

Decreasedoperating costsTechnicalIntroduce new equipment, upgrade processes.

By introducing new equipment, improving productprocesses, lower product unit prices, and enhancethe Company's competitiveness.Energyalternatives

Adopt green and low-carbon photovoltaic energy,which is bene?cial for achieving carbonpeaking and carbon neutrality.

HighHighShort to medium

term

OperationsMedium

Decreasedoperating costs

Assess the pros and cons of investing in photovo-ltaics within the park and fully utilize the advant-ages of photovoltaics.MediumHighMedium and

long-term

OperationsMedium

Augmentedoperating incomeProductsand services

Develop new products or services.

Encourage innovation, increase R&D investment,and develop green and environmentally friendlyproducts.Market

Gaining AEO certi?cation from customscan increase customer recognition.

HighHighShort to medium

term

DownstreamMedium

Augmentedoperating income

Actively promote AEO certi?cation from customs.

Energy Saving and Carbon Reduction for Green Development

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 tofully leverage this opportunity.

Climate Risk Identi?cation, Assessment, and Management ProcessesCarbon Reduction Measures

Carbon Management Training

Impact, Risk and Opportunity Management

During the Reporting Period, in order to e?ectively identify, assess, and manage the risks and opportunities posedby climate change, the Company has established a set of climate risk identi?cation and assessment processes toensure the Company maintains competitive advantage and steady development in a constantly changing climateenvironment.

To achieve climate strategy goals, including carbon reduction, carbon peaking, and carbon neutrality, the Compa-ny has formulated a series of speci?c carbon reduction measures, and actively uses smart carbon emissionmanagement platforms to track carbon footprints precisely.

To enhance employees' awareness and abilityin carbon management, the Companyorganized training on carbon managementand carbon inventory systems, emphasizingthe importance of carbon managementthrough lectures, quizzes, and other methods,to encourage employees to actively incorpo-rate energy-saving and carbon-reductionconcepts into their daily work and life.

Management ProcessManagement Measures

Gradually eliminatehigh energy consump-tion and high emis-sions equipment andtechnology, promoteclean energy ande?cient energy-savingtechnologies, improveenergy utilizatione?ciency, and reducegreenhouse gas emis-sions.

Reduce energy con-sumption and wasteemissions throughtechnological transfor-mation and processoptimization, achieveresource recycling,and lower carbonemissions during pro-duction processes.

Establish a completecarbon emissionaccounting system,fully understand theCompany's carbonemissions situation,and provide scienti?cbasis and data supportfor implementingcarbon peak andcarbon neutralitygoals.

Encourage suppliersto adopt low-carbonmaterials and produc-tion processes, jointlybuild a green supplychain, and compre-hensively reducecarbon emissions.

Energy structureadjustment

Production processoptimization

Carbon emission moni-toring and management

Supply chainmanagementThe Energy Depart-ment organizes theidenti?cation andassessment ofclimate-related riskfactors every March,updates theandrates and classi?esthem to determine risklevels.

Risk identi?cationand assessment

Based on identi?cationand assessment,formulate targeted riskresponse measures,including preventivemeasures (such asestablishing earlywarning systems,developing emergencyplans, etc.) and emer-gency measures (suchas formulating post-di-saster recovery plans,providing emergencysupplies, etc.), andevaluate the e?ective-ness of the developedresponse measures.

Formulation of riskresponse strategies

Based on preventiveand emergency mea-sures, develop animplementation plan.During implementa-tion, track progressmonthly to ensure thee?ectiveness and oper-ability of the measures.

Implementationof risk measures

Continuously followup, monitor, and ana-lyze risk measures,timely understandchanges in risk situa-tions, and adjust, opti-mize, and improve riskmeasures based onactual conditions.

Risk monitoringand adjustments

Energy Saving and Carbon Reduction for Green Development

Climate Change Risks

Energy andand Opportunities,

Environmental Management Organizational Structure

Indicators and Objectives

Solex implements the environmental policy of "preventing environmental pollution, complying with environmen-tal regulations, promoting energy conservation and consumption reduction, and creating a harmonious coexis-tence between people and water." In accordance with thethe Company has formulated documents such as the and the integrated environmental eventin-dicators into performance evaluations, established reward and penalty mechanisms for environmental pollution,constantly improved the environmental management system, and actively ful?lled environmental protectionresponsibilities to become an environmentally friendly enterprise.

Environmental Management

Environmental Compliance

Solex fully implements the national carbon peaking and carbon neutrality strategy, and is committed to strictlymonitoring and optimizing greenhouse gas emissions in all production and operational links. The Companyconducts monthly greenhouse gas inventory and develops an annual

EnvironmentalManagementCenter

Responsible for the Company's daily environmental supervision, management,and monitoring work, and responsible for formulating the Company’s environ-mental plans, goals, and annual work plans, and organizing environmentalprotection awareness campaigns and training, improve the Company's environ-mental conditions, reduce pollution to the surrounding environment whilemeeting national emission standards, and coordinate the Company's work withgovernment departments of ecology and environment.

Departments

Actively cooperate with the Environmental Management Center, adhere to thepolicy of “prevention in the ?rst place and integrating prevention with control”,advocate clean production and recycling in workshops, and eliminate pollutantsfrom the source.

AdministrationCenter

Responsible for the warehouse management of industrial solid waste andentrusting the waste to a quali?ed third party for disposal.

Key Performance Indicators

Total Emission of Greenhouse GasesGreenhouse Gas Emission IntensityDirect Greenhouse Gas EmissionsIndirect Greenhouse Gas EmissionsGreenhouse Gas Emission Reduction

UnittCO2etCO2e/10,000 yuan of output value

tCO2etCO2e

tCO2e

2024

241,757.95

2.20

876.31

240,881.64

689.02

Energy Saving and Carbon Reduction for Green Development

Greenhouse Gas Inventory.

Environmental Protection Law of the People's Republicof China, Solex Environmental Protection Management Sys-temSolex Environmental Protection Reward and Punishment System,

The Company has established the Environmental Hazard Identi?cation System and conducts regular environmental monitoring in accordance with pollut-ant discharge permit requirements. The Environmental Management Center is responsible for identifying the Company's environmental hazards andproposing corrective measures. Monthly environmental protection meetings are held to review and summarize the environmental hazards from eachdepartment, and the ?ndings are documented in a report for record-keeping.

To e?ectively prevent, respond to, and properlycontrol environmental emergencies, the Companyhas formulated the and other normative docum-ents in accordance with relevant laws and regula-tions, established procedures for dealing withleakage of waste gas, waste water, hazardouswaste, chemicals, and other environmental emer-gencies, and organized emergency rescue opera-tions in an orderly and e?cient manner to protectthe safety and health of employees and thepublic, and prevent environmental pollution.

In addition, the Company actively carries out environmental manage-ment system certi?cation, and as of the end of the Reporting Period,Solex and its subsidiary Zhangzhou Solex both obtained theGB/T24001-2016/ISO 14001:2015 environmental management systemcerti?cation.

Solex Environmental ManagementSystem Certi?cation Certi?cate

Zhangzhou Solex EnvironmentalManagement System Certi?cationCerti?cateKey Performance

During the Reporting Period

Key Performance

During the Reporting Period

Identi?cation of hidden hazards

Emergency Environmental Management

Emission RightsTrading Certi?cate

On June 6, 2024, the subsidiary ZhangzhouSolex purchased ?ve years of Chemical OxygenDemand (COD) emission rights from FujianFuwei Co., Ltd., with an annual allocation of

0.8778 tons, e?ectively alleviating environmen-

tal pressure and providing an environmentaldischarge guarantee for its productionactivities, contributing to both economic andenvironmental bene?ts.

Environmental Rights Trading

inventXiamen Solex High-tech Industries Co., Ltd.

Training on Emergency Response PlansEmergency Response Drill for Wastewater

Intrusion into Stormwater Drain

the Company invested RMB 10.945 million in environmen-tal protection and paid RMB 10,600 in environmental protec-tion taxes;with 0 environmental incidents occurred, and 0 violations oflaws and regulations concerning environmental protection.

the Company conducted17 emergency drills and 3 emergencytraining sessions speci?cally for leakage of waste gas, wastewater, and hazardous chemicals.

Energy Saving and Carbon Reduction for Green Development

Contingency Plans for Environ-mental Emergencies

Exhaust Gas Treatment Measures:

Solex strictly abides by theactively carried out pollution prevention and control work, controlledemissions of waste gas, waste water, and other pollutants, and properlyhandled waste, to minimize the environmental impact of businessactivities. The Environmental Management Center is in charge ofpollution prevention and control, and designated individuals in charge ofsewage treatment plants and hazardous waste are responsible for watertreatment and hazardous waste management.The Company regularly entrusts third-party professional monitoringorganizations to monitor the factory environment and pollutantemissions, and provides monitoring reports to ensure that the Company'soperations do not have an adverse impact on the surrounding environ-ment.

Pollution Prevention and Control

Solex attaches great importance to clean production, aiming to reduceand minimize the generation and emission of pollutants from the source.In December 2023, the Company completed its third round of cleanproduction audits and prepared the clean production audit report. In2024, the Company continued to promote clean production, supervisedthe implementation of clean production plans, regularly organizedemployee training on clean production, and established clean productionincentive mechanisms.

Clean Production

Solex has formulated documents such as the to manage waste gas emissions.The Company has set up corresponding waste gas treatment equipment for waste gas generated during electroplating, spraying, injection molding andother processes and dust generated during the production process, and regularly carried out maintenance to ensure that waste gas emissions meetstandards.

Waste Gas Management

Install dust treatment systems, and use cyclone dust removal, water spray dust removal, and pulse dust removal methods to treat dust.Install exhaust systems to collect acidic exhaust gases, which are then treated by matching acid mist scrubbers and discharged through the exhauststack.Install organic waste gas puri?cation equipment, and use water curtain absorption, water spray, catalytic combustion, and activated carbon adsorptionprocesses to treat organic waste gases.

Injection Molding ExhaustGas Treatment FacilitiesSpray Painting ExhaustGas Treatment FacilitiesPolishing Exhaust Gas Treatment Facilities

Energy Saving and Carbon Reduction for Green Development

Law of the People's Republic of China on thePrevention and Control of Atmospheric Pollution and the Law of the Pe-ople's Republic of China on the Prevention and Control of Water Pollution,

Soil, Water, and Air Pollution Prevention and Control Management Measures

Case Study: Standardized Training on Wastewater Discharge

Case Study: Specialized Training on Exhaust Gas Treatment

Special Training on Exhaust Gas TreatmentStandardized Trainingon Wastewater Discharge

The Company actively carries out wastewater management work and has formulated theThe third party environmental monitoring unit is entrusted to monitor theCompany's sewage discharge situation every year to ensure compliance with local environmental protectionbureau requirements. The Company's wastewater includes both domestic and industrial wastewater. Domesticwastewater is treated by biological treatment technology before discharge, while industrial wastewater is treatedusing chemical precipitation and anaerobic and aerobic treatment technologies before discharge.In 2024, TheCompany recycled 51,787 tons of wastewater, with a wastewater recycling rate of 35%.

On August 26, 2024, theCompany held a specialtraining session on VOCsand ODS, providing adetailed explanation ofthe environmental haz-ards posed by volatileorganic compounds andozone-depleting sub-stances, as well as therelevant laws and regula-tions. The trainingenhanced employees'understanding of the haz-ards of air pollutants andraised awareness of wastegas control.

On November 13, 2024, the Company conducted standardizedtraining on wastewater discharge, carefully explaining waste-water discharge-related systems, wastewater treatment pro-cesses, and discharge requirements. Through this training,employees' understanding of the Company's wastewater treat-ment work was e?ectively improved, laying a solid foundationfor the further advancement of the Company's environmentalprotection work.

Wastewater Management

Key Performance IndicatorsWaste Gas EmissionsNitrogen oxide (NOX)Sulfur dioxideHydrogen chlorideVolatile organic compounds (VOC)

Sulfuric acid mistParticulate matter (PM)

Unit

10,000 m

tontontontontonton

2024513,305.88

0.0095

0.0095

0.2175

0.8012

0.0635

9.2822

Key Performance Indicators

Wastewater DischargesChemical oxygen demand (COD)Five-day biochemical oxygen demand (BOD5)

Suspended solidsAmmonia nitrogen (NH3-N)Total phosphorus (P)Animal and plant oils

Unit10,000 m

ton

ton

ton

ton

ton

ton

2024

28.9458

8.4357

2.7311

5.2513

2.5293

0.0033

0.0015

Energy Saving and Carbon Reduction for Green Development

Sewage Treatment Cen-ter Operation Management Measures.

Case Study: Standardized Training on Hazardous Waste Management

Standardized Training on Hazardous Waste Management

Solex has formulated the and theto standardize the disposal process of general waste and hazardous waste,ensuring environmental safety.

Waste typeMain wastesMain disposal measures

On March 19, 2024, the Company conducted standardized training on hazardous waste management,introducing employees to hazardous waste laws and regulations, the Company's hazardous waste manage-ment system, major hazardous waste categories, and the environmental protection bureau's hazardouswaste assessment through PPT presentations. This training enriched employees' professional knowledge inhazardous waste management and encouraged them to consciously and rigorously practice standardizedhazardous waste management concepts and operational procedures in their daily work.

Key Performance

During the Reporting Period

Management of Wastes

The Company also actively carries out noise pollution control and soil pollution control by installing noise reduc-tion and vibration reduction equipment, using double-glazed windows, employing soundproof rooms, and factorysoundproo?ng techniques for noise control, while strictly storing, collecting, recycling, or disposing of substancesthat could cause soil pollution in an orderly manner to minimize the potential for soil pollution.

Other Pollution Emissions

Hazardous

wasteGeneral

wasteHousehold

garbage

Quantity of general waste generated: 1,914.29 tons;Quantity of general waste disposed of: 1,914.29 tons;Quantity of Hazardous Waste Generated: 1,287.94 tons;Quantity of hazardous waste disposed of: 1,287.94tons.

Energy Saving and Carbon Reduction for Green Development

Waste mineral oil, paint waste,waste organic solvents, wasteemulsi?ed liquids, etc.Waste cardboard, waste sand,scrap metal, waste wood,plastic scrap, etc.Household garbage

Transported to the Company's temporary storage area forhazardous waste for treatment by quali?ed third-partyservice providersEntrusted to quali?ed third-party general solid wastedisposal companies for treatmentHanded over to the environmental health managementdepartment for uni?ed processing

Waste Management SystemHazardous Waste Environmental Pollution Prevent-ion and Control Responsibility System

Case Study: Environment Day “Comprehensively promote the construction of a beautiful China”Green O?ce Initiatives

Garbage Sorting PostersAir Conditioning

Temperature Control

Use Automatic FaucetsEnvironment Day event

Green Operations

The Company actively promotes the concept of green o?ce and encourages employees to integrate energy-savingand environmental protection awareness into their daily work and life, making contributions to environmentalprotection and sustainable development.

In order to cultivate employees' environmental awareness, the Company actively carries out environmentalprotection publicity and education, and encourages employees to practice environmental protection concepts indaily life and work through interactive games, quizzes, and on-site promotions.

On June 5, 2024, the Company held the Environment Day "Comprehensively promote the construction of abeautiful China", and conveyed the importance of environmental protection to participants throughinteractive games, quizzes, and other activities. Employees generally provided feedback that it strength-ened their environmental awareness. In the future, the Company will continue to promote the populariza-tion and practice of environmental protection concepts.

Green O?ceEnvironmental Public Welfare

Use double-sided printing and advocate paperless o?ce to save paper.Set the air conditioning temperature to 26°C in o?ces, turn o? lights, computers, and projectors in meetingrooms after use, and turn o? lights and air conditioning when leaving the o?ce to save electricity.Install automatic faucets in water sinks to e?ectively avoid employees forgetting to turn o? the faucet after useto save water.Set up classi?ed trash bins and post waste sorting posters in the environmental protection bulletin board.

Energy Saving and Carbon Reduction for Green Development

Energy Management Organizational Structure

Energy Management

Improving resource utilization e?ciency is an important part of the Company's sustainable development practicesand a key measure to protect the ecological environment. Solex is committed to optimizing the e?ciency ofenergy, water, and material utilization, actively developing a circular economy, and building a resource-savingenterprise.

Resource Utilization

To improve energy management, the Company has established an energy leadership team, with the Vice Chairmanand President serving as the top leaders. The Safety Resources Department oversees the team, while each businessdivision has a designated energy manager and an energy management specialist to coordinate the energymanagement work from top to bottom. The Company incorporates energy management work into performanceevaluations, scores according to evaluation standards, and divides it into four levels: A, B, C, and D, withcorresponding performance rewards.

Under the increasingly strict energy regulation background, enterprises are facing growing energy usage risks.These risks may not only disrupt the daily operations of enterprises but could also harm the brand reputation andmarket position accumulated by enterprises over the long term. The Company actively identi?es related energyrisks and develops response measures.

Strategy

Corporate Governance

Highest Leaders

Safety Resources Department

Group Center

EnergySpecialist

Beauty andHealth Division

EnergySpecialist

Shower Division

EnergySpecialist

PME Division

EnergySpecialist

Intelligent Electronics Division,Kitchen and Basin Beauty SpaceDivision, New Category IncubationDivision, Innovation Design Center

EnergySpecialist

Energy Saving and Carbon Reduction for Green Development

Solex adheres to the energy management policy of "compliance with law, ?ne management, low-carbon manufac-turing, and sustainable development," and has formulated documents such as the and the to guide and regulatethe Company's energy usage behavior and improve energy utilization e?ciency.In 2025, Solex and its subsidiaryZhangzhou Solex both passed the ISO 50001:2018 Energy Management System Certi?cation, marking a new stepforward in the standardization and normalization of energy management.

Solex Energy Management Ma-Company Energy Consumption Indicator Assessment Management Measuresnual

Zhangzhou Solex's EnergyManagement System Certi?cationSolex's EnergyManagement System Certi?cation

The probability of occurrence, the magnitude of impact, the time span of the impact, the value chain links of impact, priority ranking, and potential ?nancial impact are all used to assess the risks.

Risk TypeRisk Description Description

Probabilityof Occurre-nce

Impact SizeImpact Timeframe

Value ChainLinks of Impact

Priority RankingPotential Financial ImpactResponse Measures

PhysicalRisks

Policy Risks

TechnologyRisks

MarketRisks

Extreme temperatureevents, extreme storms,heavy rainfall, droughts,etc., may cause damageto the Company's energyfacilities, energy supplyinterruptions, andincreased energy costs.New energy policies andenvironmental protec-tion regulations mayincrease enterprises'energy compliance costsor even restrict energyusage, indirectly a?ect-ing production andenergy e?ciency.Investment in newenergy technologies orenergy e?ciency-en-hancing products mayfail, causing losses toenterprises.

Rising energy costs a?ectthe Company's costs andpro?ts.

Increase the ability toresist risks from extremeweather events andenhance the enterprise'smanagement capabilityto cope with energy riskchallenges.The government hasintroduced subsidy,incentive, and other poli-cies to encourage enter-prises to adopt cleanenergy or improveenergy e?ciency.

Successful energy transi-tion and processupgrades make it easierto attract green inves-tors.

Develop energy-savingproducts and technolo-gies, explore new mar-kets.

Protect energy facilities,increase energy diversity, opti-mize energy structure, developemergency response anddisaster recovery plans, etc..

Optimize energy structure,invest in clean energy technol-ogies.

Reduce technical develop-ment di?culty and risksthrough technology introduc-tion and collaborative R&D.

Increase energy diversity anddevelop higher-quality prod-ucts.

LowMediumShort to medium termUpstream,Operations

MediumIncreased energy costs

MediumMediumMedium and long-termOperationsMediumIncreased energy

compliance costs

LowMediumShort to medium termOperationsMediumIncreased cost expenditure

HighMediumShort to medium termOperationsMediumIncreased operating costs

Energy Saving and Carbon Reduction for Green Development

invent

Xiamen Solex High-tech Industries Co., Ltd.

Energy-saving Outdoor Activities Site

Energy risk and opportunity identi?cation, assessment, and management process

During the Reporting Period, the Company formulated the andother documents, and established a complete set of processes for identifying, assessing, and managing energyrisks and opportunities to e?ectively enhance its ability to resist risks.Management Process

Solex formulates an energy management plan every year and follows up on the implementation of the plan andenergy-saving bene?ts. During the Reporting Period, the Company's energy management plan mainly focused onenergy-saving transformation plans, the promotion of intelligent energy monitoring system construction, replace-ment of old, high-energy-consuming equipment, and the adoption of energy-saving equipment to improve energye?ciency. At the same time, in August 2024, the second phase of the roof photovoltaic project of the subsidiaryZhangzhou Solex was successfully connected to the grid, achieving photovoltaic power generation, and the energystructure was further optimized.During the Reporting Period, the Company conducted several energy-saving training activities for employees. Atthe same time, the Company actively carried out energy-saving promotional activities. In July 2024, it hosted anenergy-saving outdoor activities across three parks, with 454 participants. Through activities such as mini-gamechallenges and energy-saving science popularization video contests, the event e?ectively raised employees'awareness of energy conservation, promoted the learning and sharing of energy-saving skills, and fostered a green,energy-e?cient park environment.

Management MeasuresImpacts, Risks, and Opportunities

The Company has setup a risk identi?cationteam, led by the ener-gy-saving team, toorganize and carry outthe work.

Establish a riskidenti?cation team

The risk identi?cationteam has formulated arisk assessment planbased on the Compa-ny's actual situation,organized variousfunctional depart-ments to carry outidenti?cation andassessment, and man-aged them accordingto risk levels.

Risk identi?cationand assessment

Based on di?erent risklevels, develop corre-sponding responsemeasures to minimizethe impact of risks, andregularly review therisk control plan toensure its e?ective-ness.

Risk control

Update the risk control planin a timely manner based onactual circumstances, andconduct risk assessmentfrom scratch when signi?-cant changes occur in rele-vant laws, regulations, orthe Company's situation.

Risk update andcontinuous improvement

Energy Saving and Carbon Reduction for Green Development

Energy Risk and Opportunity Control Procedures

The Company's total water consumption is573,813 tons, with a water consumption

intensity of 1.69 tons/10,000 yuan of outputvalue.

invent

Xiamen Solex High-tech Industries Co., Ltd.

Recyclable Returnable Pallet

Recyclable Transparent PVC Blister

Water resource management

In accordance with theand other laws and regulations, the Company hasformulated the to stren-gthen water management and improve water e?ciency.The Company regularly conducts comprehensive inspec-tions of the water supply system and water-using facilities,tests water quality for raw water, treated water, etc., identi-?es water risks, and develops response measures. TheCompany monitors the water consumption of each factorythrough the intelligent water management system toimprove the ?ne management of water resources, and alsorecycles wastewater through a reclaimed water system,with a wastewater reuse rate of 35%.Material ManagementUpholding the concept of environmental protection, theCompany has formulated thewith a focus on using environmentally friendly materialsthat are non-plasticized and biodegradable in packaging,and has implemented green packaging initiatives tominimize environmental impact. At the same time, theCompany advocates material recycling and requires suppli-ers to promptly recycle cartons, pallets, plastic blisters, andother returnable items for reuse, and incorporates themanagement cost of returnable items into the performanceassessment of the responsible personnel to e?ectivelyreduce returnable item costs.

The Company has set an energy-saving target for 2024, speci?cally aiming to reduce energy consumption by 3%compared to the 2023 levels. To achieve this, each department has set corresponding energy-saving targets andestablished an energy-saving incentive mechanism to encourage active participation in the formulation ofenergy-saving plans and the implementation of energy-saving measures.

Key Performance

During the Reporting Period

Key Performance

During the Reporting Period

the Company used

17.05 tons of non-plasticized

and biodegradable materials.

Indicators and Objectives

Key Performance Indicators

Total Energy ConsumptionEnergy Consumption Intensity

Natural gas

Gasoline

DieselPurchased electricityTotal purchased heatPhotovoltaic Power Capacity

Clean energy consumptionFossil energy consumptionNon-fossil energy consumption

Unittcetce/10,000 yuan of output value

10,000 m

literslitersMWhGJkWhtcetcetce

2024年257,455.53

0.76

24.56

96,997.3671,822.3163,827.8610,649.625,044,965

280.59

256,554.91

620.03

Energy Saving and Carbon Reduction for Green Development

Water Law of the People's Republicof China

Solex Water Management System

Rules on the Use of ReturnableItems and Early Warning Mechanism Management Measures,

Innovation for Quality,Responsibility First

SDGs

Our Philosophy

Solex adheres to the product policy of "technological innovation,quality-oriented" and injects strong momentum into the Company'scontinuous high-quality growth through the establishment of a soundR&D structure, implementation of comprehensive product lifecyclequality management, active protection of consumer rights, and strength-ening of the resilience and sustainability of the supply chain.Our ActionsInnovation-drivenProduct qualityProtection of Customers' Rights And InterestsInformation Security and Privacy ProtectionSupply chain management

Solex has always followed the business philosophy of "innovation, design, and manufacture" and attaches greatimportance to the driving force of innovation for the Company. The Company has formulated documents such asthe and the to standa-rdize the new product development process and promote the rapid transformation of new products into mass-pro-duced products. The Company also has an Intelligent Electronics Division that provides R&D support in electronicand intelligent technologies to various business divisions. In addition, each product division of the Company hasset up a dedicated R&D department to promote the innovative upgrading of each product category, closely linkingthe R&D stage with the sales stage, ensuring that the R&D process is market-driven, and improving the transforma-tion rate of new product development.The Intelligent Electronics Division is the Company's main R&D department, divided into internal R&D teams(Smart R&D Center) and external R&D teams (Smart Health Joint Research Center, Optoelectronic Beauty andHealth Joint Research Center, and Postdoctoral Research Workstation). Additionally, an experimental center is setup to provide one-stop experimental and testing environments for products.

Governance

R&D Organizational Structure Diagram

Innovation-driven

Solex

Innovation Design Center

Intelligent Electronics R&D Department

R&D Personnel Information

Master’s Degree or above18PersonBachelor’s degree542PersonCollege134PersonHigh school or below124Person

Under 30 (exclusive) years old373Person

30 (inclusive) to 40 (exclusive) years old302Person40 (inclusive) to 50 (exclusive) years old123Person50 (inclusive) to 60 (exclusive) years old19Person60 years old or above1Person

Total R&D team members818Person

Innovation for Quality, Responsibility First

Shower R&DDepartment

Kitchen and BasinBeauty Space R&DDepartment

Beauty and HealthR&D Department

New CategoryIncubation R&DDepartment

Smart ToiletR&D Department

Toilet AccessoriesR&D Department

New Product Development Work GuidelinesNew Product Development Control Procedures

By academicquali?cation

By age

TotalR&D teammembers

The Company has formulated documents such as theand theto encourage R&D personnel to fully engage their innovativepotential. Di?erent bonus bases have been set for IDM, ODM, and OEMprojects, and evaluated and graded based on innovation, di?culty, andcontribution as bonus coe?cients. These measures aim to maximize thedevelopment of new products, technologies, and projects, promote thecommercialization of scienti?c research achievements, enhance theenterprise’s competitiveness, and improve economic bene?ts.

Solex's R&D innovation capabilities have been recognized by government departments and industry associations, receiving awards such as NationalService-Oriented Manufacturing Demonstration Enterprise, National Postdoctoral Research Station, National Enterprise Technology Center, NationalIndustrial Design Center, and National Intellectual Property Demonstration Enterprise. The subsidiary, Zhangzhou Solex, has been awarded the FujianProvincial Specialized and Innovative Small and Medium Enterprise and National High-tech Enterprise.

Additionally, the Company actively collaborates with universities, top-tier hospitals, and other institutions for cooperative R&D, leveraging each other'sstrengths to jointly build a research and development platform based on industry-university-research cooperation, promoting the transformation andapplication of technological achievements. For example, the Company collaborates with Huaqiao University to establish the Smart Health Research Center,focusing on AI + smart health key technology R&D; and the Company collaborates with the Stomatological Hospital of Xiamen Medical College for thedevelopment of oral care monitoring products, and the development and industrialization of smart water ?ossers.

Innovation Incentive MechanismTechnological Innovation Platform Construction

Reward

types

Patent rewardProject rewardProposal reward

Technological innovationand transformation rewardIntellectual propertyimplementation rewardScienti?c research achi-evement transformationrewardKey Performance

During the Reporting Period

the Company's innovation incentive expendi-ture was RMB530,868.36,with 159 people receiving incentives.

Innovation for Quality, Responsibility First

Research and Dev-elopment Achievement Reward Measures R&D Incentive Manage-ment Rules

As market competition intensi?es, developing more energy-e?cient products that better meet customer needs is key to maintaining the Company's competitiveness. The Company actively identi?es and evalu-ates the risks and opportunities in R&D innovation and formulates corresponding response measures to enhance its R&D capabilities.Strategy

Risk TypeRisk Description Opportunities

Probabilityof Occurrence

Impact SizeImpact Timeframe

Value Chain Linksof Impact

Priority Ranking

Potential FinancialImpact

Response Measures

Legal risks

TechnologyRisks

Talentturnover

During the process of tech-nological innovation, theCompany may face legaldisputes such as patentinfringement, trademarkdisputes, etc..

New products or technolo-gies may face qualityissues or fail to meetmarket trends.

Key members leaving theR&D team, causing knowl-edge loss.

Product innova-tion helps theenterprisestrengthen itscore competi-tiveness, attractmore custom-ers, increasemarket share,and improvepro?ts.

Conduct patent retrieval andanalysis to avoid infringing onothers' intellectual propertyduring R&D; and promptlyapply for patents to protect itsown R&D results.

Conduct research and deter-mine the correct direction andtopics for R&D, establish andimplement control processesfor new technology researchand product development,strictly adhere to quality plan-ning and process control, andensure that new technologiesand products meet qualityrequirements.

Motivate R&D personnel whoproduce innovative results,improve their compensation,and strengthen team cohe-sion.

LowLargeMid-termOperationsMedium

Increasedoperating costs

LowMedium

Short tomedium term

OperationsMedium

Increasedoperating costs

LowMedium

Short tomedium term

OperationsMedium

Increasedoperating costs

Innovation for Quality, Responsibility First

Protection of Intellectual Property Rights

R&D risk and opportunity identi?cation, assessment, and management process

Trade Secrets Protection Seminar

To promote technological innovation, the Company has set R&D innovation goals and is ?rmly advancing techno-logical innovation, focusing on building an intelligent hardware IDM shared platform, integrating and optimizingthe Company's three major resource-sharing platforms of "model, technology, and manufacturing,” and basedon HOME scenarios and health scenarios, leveraging AIOT technology and the concept of big health to empowerthe development, design, and intelligent manufacturing of kitchen and bathroom and health products, beauty andhealth products, and emerging intelligent health hardware IDM products.

Indicators and Objectives

Innovation-driven Management Measures

The Company attaches great importance to intellectual propertyprotection, and has formulated systems such as thetheand the coveringthe generation, maintenance, and application of intellectual propertycomprehensively. The Company has also established an IntellectualProperty Center responsible for managing patents, trademarks, etc.,tracking updates to laws and regulations, handling intellectual proper-ty disputes, and has been awarded as National Intellectual PropertyDemonstration Enterprise and Xiamen Intellectual Property Demon-stration Enterprise.During the R&D project development process, the Company focuses onthe timely registration, application, and ?ling of intellectual propertyto ensure that innovative results are legally protected. In 2024, theCompany successfully applied for a total of 265 domestic and interna-tional patents and 1 copyright. Additionally, the Company conductscomprehensive intellectual property due diligence through cross-de-partment collaboration and seminars to reduce the risk of the productsinfringing on others' intellectual property. Moreover, the Companyorganizes intellectual property training to strengthen the intellectualproperty awareness of all employees, fostering a culture of respectingand protecting intellectual property across the Company.

The Company has established a complete process for identifying, evaluating, and managing R&D innovation risksand opportunities to actively respond to R&D innovation risks and ensure the smooth progress of R&D projects.Impact, Risk and Opportunity Management

Identify potential risksthat may arise through-out the entire process ofdeveloping new tech-nologies and products,and conduct regularproject reviews

Formulate preventiveand emergency mea-sures for the risks tominimize their impact

Continuously follow upon the implementationof risk response mea-sures, regularly reviewand monitor riskfactors, and adjust therisk list and responsemeasures in a timelymanner

Assess the probability ofoccurrence and impactof identi?ed risks, anddetermine the risk level

Riskidenti?cation

RiskAssessment

RiskManagement

Risktracking

Key Performance

During the Reporting Period

Key Performance

As of the end of the Reporting PeriodThe Company's R&D investment: RMB 225,113,700 ,Percentage of R&D investment in main operating income:7.47%.

the Company had a total of23 trademarks and 1,337 authorized patents,including 422 invention patents, 756 utility model patents, and 159 design patents.

Innovation for Quality, Responsibility First

Leaders from the Fujian ProvincialAdministration for Market Regulationprovided guidance on Solex's intellec-tual property protection e?orts

Patent Managem-Intellectual Property Records Management System,Intellectual Property Emergency Handling Measures,ent System,

invent

Xiamen Solex High-tech Industries Co., Ltd.

Digitalization Construction

Since its establishment, Solex has always adhered to the quality policy of "Customer-Centric, Continuous Improve-ment; Technology Innovation, Quality Primacy," and has formulated quality management systems such as thethe and implemented strict quality control in all aspects such as product R&D, material pro-curement, production, and product testing, thereby establishing a good brand image. To ensure the e?ectiveoperation of the Company's quality management system, the business divisions have a separate quality manage-ment department responsible for product quality control. During the Reporting Period, the Company and itssubsidiary Zhangzhou Solex have obtained the quality management system certi?cation.

GovernanceProduct QualitySolex attaches great importance to industry communication and actively participates in industry standard-settingto jointly build a standardized and harmonious industry environment. The Company has participated in thedevelopment of multiple kitchen and bath industry standards, covering 8 national standards, 12 industrystandards, and 4 group standards.

Solex actively promotes the digitalization of R&D innova-tion, leverages SAP and OSAP software to managevarious business processes such as ?nance, humanresources, materials, and procurement, and collects,analyzes, and monitors data from the R&D and produc-tion processes through the Manufacturing ExecutionSystem (MES) to ensure precise execution of productionplans and on-time delivery. At the same time, the Compa-ny also uses Business Intelligence (BI) to organize,analyze, and visualize internal and external data, helpingbusiness managers make wiser decisions.

Solex's ISO 9001Quality Management System Certi?cate

Zhangzhou Solex's ISO 9001Quality Management System Certi?cate

Participation in Standard Development

Digitalization Construction

Some major standards:

Ceramic cartridge faucets

National Standard GB 18145-2014Sanitary ware - Pressure assistant

water ?ushing devicesNational Standard GB/T 26750-2011Sanitary ware - Gravity water?ushing devices and supportsNational Standard GB 26730-2011Sanitary ?xture for water savingNational Standard GB/T 31436-2015

Terminology and classi?cationfor the kitchen and sanitary ware ?ttingsNational Standard GB/T 33733-2017Minimum allowable values of water e?ciencyand water e?ciency grades for showersNational Standard GB 28378-2019Quality grading of consumer products - Kitchenand sanitary ware ?ttings (Zhangzhou Solex)National Standard GB/T 44212-2024General technical requirements for kitchenand sanitary ware ?ttings (Zhangzhou Solex)National Standard GB/T 44180-2024

Innovation for Quality, Responsibility First

Inspection and Test Control Procedures, Production Management Control Procedures, and the Incoming Ma-nagement Speci?cations,

The Company actively identi?es quality safety risks and potential opportunities related to its products and implements product quality safety risk management measures to ensure that the product quality meets standards.Strategy

Risk TypeRisk DescriptionDescription

Probability ofOccurrence

Impact Timeframe

Value Chain Linksof Impact

PriorityRanking

Potential Fina-ncial Impact

Response MeasuresRisk of changesin laws andregulations

Product manu-facturing andquality safetyrisks

Customerdemand risks

Failure to promptlyunderstand updates toproduct standards andlaws and regulations, orcurrent systems not inline with new standards.Low production e?cien-cy or high defect rate;Unclear product labeling,mixed materials;Substandard productquality.Misjudging market devel-opment trends, failing tounderstand and meetcustomer needs.

Product structure adjust-ments and changes in theindustry's productionenvironment bringpotential customers tothe Company.Improve the Company'sproduct percent of passand production e?cien-cy, reduce customercomplaints, and increasecustomer satisfaction.Understand marketdevelopment trends,identify potential cus-tomer needs, ensure con-tract ful?llment, andimprove customer satis-faction.Reduce customer com-plaints, improve custom-er service quality andsatisfaction, bring newprojects or products tothe Company.Properly maintain equip-ment to create a goodproduction environment,and reduce product costsby introducing advancedproduction technologyand equipment.

Timely collect and assess laws, regulations, and stan-dards, and translate them into internal company stan-dards for implementation;Increase market development.Timely post nonconforming labels;The Logistics Department formulates reasonable pro-duction plans;The Production Department produces according toplan and ensures proper labeling;The Quality Department follows up on inspections toensure the product meets customer requirements.

Establish a complaint handling process to ensuretimely feedback and handling of customer complaints.Provide maintenance and spare parts inventory ofequipment;Establish a complete emergency plan for equipmentfailures to ensure the smooth continuation of the pro-duction process.

Repeatedly verify market demand and product devel-opment trend analysis, and monitor and measure cus-tomer requirements.

LowHighLong-term

Upstream,operations,downstream

Medium

Compensation,?nes

Compensation,?nesLowMediumLong-term

Operations,downstream

Medium

LowMedium

Short- andmedium-term

Operations,downstream

High

Increased storagecosts and capitaloccupation,reduced salesrevenue

Customercomplaint risks

Failure to e?ectivelyresolve customer com-plaints.

MediumHigh

Short- andmedium-term

Operations,downstream

Medium

Increased after-sales servicecosts and oper-ational costs

Productionequipment risks

Insu?cient equipmentcapacity and capability,frequent equipmentbreakdowns.

MediumHigh

Medium- andlong-term

UpstreamMedium

Reduced pro?tmargin

Innovation for Quality, Responsibility First

ImpactSize

Case Study: Inlet Valve Product Knowledge Training

Internal Inlet Valve Product Knowledge Training

Impact, Risk and Opportunity Management

The Company focuses on managing and maintaining production equipment. All relevant departments have formu-lated equipment management systems, such as the and the and regularly conduct equipment maintenance to ensure e?cient operat-ion of equipment and smooth production processes.The Company organizes quality training and related skill competitions every year, including training on qualitysystems, sampling plans, and incoming quality inspection standards, aiming to continuously enhance employees'quality awareness and improve operational skills.

On May 28, 2024, the Company conducted an internal knowledge training on inlet valve product tostrengthen employees' understanding of product performance and usage techniques. On November 4, theCompany expanded the training scope and provided the same product knowledge training to suppliers,followed by an assessment of the training e?ectiveness to ensure a consistent high standard of productknowledge across all stages of the supply chain.Management Process

Management Measures

Each departmentidenti?es risks andopportunities withinits department, andthe Quality Depart-ment organizes a riskand opportunityassessment team tolist the assessmentplan.Risk and OpportunityIdenti?cation

The assessment teamevaluates and summa-rizes the risks andopportunities identi-?ed by each depart-ment.

Risk and OpportunityAssessment

Each departmenttakes measures basedon the risk assessmentresults to reduce oreliminate risks.

Risk and OpportunityManagement

Each departmentreviews the measurestaken for risks andopportunities annual-ly to verify their e?ec-tiveness.

Risk and OpportunityReview

Innovation for Quality, Responsibility First

Annual Equipment Maintenance Plan Assembly Equipment Maintenance Plan,

Annual Shower

The Quality Departments of each business division adhere to the development strategy of "intelligent hardwareIDM" and the business philosophy of "innovation, design, manufacture", and have set quality objectives.Indicators and ObjectivesProduct Quality Management Measures

To ensure product quality, the Company has developed a set of procedures covering the entire product manufac-turing lifecycle, ensuring strict control at every stage from raw material procurement to manufacturing, and toafter-sales service and product recalls, with the aim of achieving continuous stability and optimization of productquality.

Key Node Management in Product Manufacturing Process

Product Manufacturing Process

IncomingMaterialInspection

ProcessInspection

FinalInspection

Key PerformanceDuring the Reporting Period

Inspectors should inspect the ?rst ?nished product according to theand submit the ?rst product sample and report to the team leader for approval once it iscon?rmed to be conforming;Operators should perform self-inspection and mutual inspection on products and materialsbased on the process card, and mark and isolate any defective items found;The inspectors of the Quality Department should focus on key process or those wherequality issues frequently occur.Inspectors conduct sampling inspections based on inspection standard documents andrecord the inspection results in the corresponding Inspection Report;If inspectors ?nd that the product does not meet the requirements, they should issue a and follow the for r-ework.

Inspectors conduct inspections based on the delivery order or pending inspection records inthe OA system;Inspectors determine inspection plans based on the quality inspection plan and selectsamples for inspection according to relevant inspection standards. Products that fail theinspection are rejected on the Inspection Sheet based on the ?nal judgment in the IncomingInspection Report and are marked accordingly;Warehouse personnel notify suppliers through the OA to handle product returns for noncon-forming materials;If the materials provided contain hazardous substances, it is required to ensure that thereceived materials are accompanied by the supplier's and haveundd-party sampling and testing prior to inspection.

Company Product Service Quality Objectives in 2024

Monthly return loss rate ≤ 0.16%Customer complaint handling timeliness rate: 100%FQC ?nished product batch acceptance rate ≥ 98.5%Customer ?nished product batch acceptance rate ≥ 98.5%

AchievementAchievedAchievedAchievedAchieved

Number of products that are required to be withdrawn and recalled for health and safetyreasons: 0;Solex recorded zero instances of negative public opinion about our company;Number of risk assessments conducted: 27;Product Percent of Pass: 98.76%;Number of annual internal quality audits: 14;Number of times third-party agencies were engaged for sampling: 20;Number of participants in quality training: 2,459;Total hours of quality training: 1,205.50;Number of quality training sessions: 244.

Innovation for Quality, Responsibility First

Quality Inspection Plan

ality Issue Handling Form

Qu-Nonconforming Product Control Procedure

Environmental Declaration

Rework Process System

The Company has formulated the the andthetoensure the orderly and controllable product recall process andprotect the rights and interests of consumers.

Product Recall Management

The Company has deeply integrated quality management with digital technology, developing systems such as theOA quality control module, an electronic inspection report generation system connected to digital calipers, and arework process system. These initiatives have signi?cantly enhanced production e?ciency, enabled real-timemonitoring of product information and production progress, and ensured the rapid identi?cation and timelyrework of nonconforming products during manufacturing, thereby ensuring the stability and continuous improve-ment of product quality.

Product Quality Management Digitalization

Product Recall Management Process

Sales personnel shouldclearly and speci?cally?ll out the inclu-ding customer names,product names, quanti-ties, and the reason forrecall;

The sales manager orga-nizes relevant depart-ments and personnel toanalyze the cause of theproduct recall for prod-ucts without qualityissues and provide han-dling suggestions;

The Quality ControlDepartment analyzes thedefective products fortheir root cause, writesout handling suggestions,executes the for non-conform-ing products, and ?lls outthe Corrective and Preven-tive Action Report;

If the recalled productquantity is too large, thegeneral manager shouldconvene a managementreview meeting.

OA Quality Control Module

Innovation for Quality, Responsibility First

Product Recall Work Instruction,Product Recall Management System,Product Recall Management Procedures

Product RecallApplication Form,

Nonconfor-ming Product Control Pr-ocedure

invent

Xiamen Solex High-tech Industries Co., Ltd.

Case Study: Induction Training

New Employee Induction Training

For new employees joining in the current year, the Companyregularly conducts SOP training, covering a series of customerservice tasks from the quotation process to customer visits andrelationship maintenance, to e?ectively enhance new employees'professional knowledge and skills in customer service.

The Company Received the Excellent Supplier Award

Solex adheres to the customer service philosophy of "providing valuableproduct solutions, putting customers ?rst, o?ering professional teamsupport, ensuring stable points of contact, and maintaining transparencyand sincerity." The Company continuously re?nes every aspect ofpre-sales consultation, in-sales service, and after-sales support, with acommitment to building a high-quality, comprehensive customer servicesystem.

Protection of Customers' Rights and Interests

The sales departments of each business division have developeddocuments such as theto e?ectively and promptly understand and addresscustomer service needs. Through collaboration between the MarketingCenter, R&D Center, Quality Assurance Department, Production Depart-ment, and Warehouse Department, the Company ensures that customerrequirements for product quality and other related demands are met,thereby maintaining long-term, stable customer relationships and layinga solid foundation for the Company's high-quality growth. During theReporting Period, the Company received the Excellent Supplier Award.

The Company has established a monthly KPI evaluation system forcustomer service, focusing mainly on customer visits, complaints, factoryinspections, and other aspects of customer service handling. The Compa-ny also organizes non-scheduled training, project sharing sessions, andother activities to enhance employees' customer service awareness andimprove their skill levels Additionally, the Company uses Yingdaosoftware to complete processes such as order placement, booking, andinvoicing, thereby improving the e?ciency and accuracy of customerservice.Customer Service Management

The Company has established systems such as thethe and the Cu-stomer Feedback and Complaint Control Procedures, and set up a dedicatedcomplaint handling team to ensure prompt response and proper resolu-tion of customer complaints.

Customer Complaint Response Mechanism

Sources of customer complaintsCustomers provide feedback and complaints through written messag-es, emails, verbal communication, refusals, returns, and other means.Timely responseUpon receiving a complaint, the Sales Department con?rms the issue,immediately communicates with the customer, and attempts to recordproduct/problem-related information, and promptly clari?es this withthe customer if the issue is not related to the Company;Customer complaint level classi?cationThe Quality Department veri?es the complaint/feedback, classi?es itby severity, and determines whether an investigation is needed, andexplains the reason and records it if no investigation is conducted;Root cause analysisThe responsible department investigates the complaint, and if neces-sary, invites the general manager to participate in a complaint meetingto analyze the issue, discuss the root cause, and determine correctiveand preventive actions;Customer complaint responseOnce the complaint is fully understood, the Quality Department pre-pares a report, and the Sales Department communicates the improve-ment measures or results to the customer;Follow-up and trackingThe responsible department follows up on the implementation ofcorrective and preventive measures. The Quality Department supervis-es and collects evidence of corrective actions, and keep records.

Innovation for Quality, Responsibility First

Process Management Procedures for Customer-Related Processes

Customer ComplaintManagement Procedures, Customer Complaint Handling Work Inst-ructions, the External Quality Issue Management Procedures,

invent

Xiamen Solex High-tech Industries Co., Ltd.

Responsible Marketing Training

The Company attaches great importance to customer satisfaction andhas established system documents such as theand theThe Company conducts customer satisfaction surveys annually, focuseson evaluating customer satisfaction in the areas of product quality,pricing, sales service, and delivery process, and makes improvementsbased on the survey results.

The Company is committed to providing truthful, transparent, and responsible information through responsible marketing strategies to promote sustain-able development and enhance consumer trust. The Company regularly provides sales training for sales personnel, focusing on the marketing content ofvarious products to ensure that the sales process with customers is honest, transparent, and compliant.

Case Study: Timely and Accurate Handling of Customer Complaints

Investigation of the Cause of Screw Post Cracking

On January 6, 2024, the customer reported that 800 sets of82ZM42-000-0008 F10 back shell assemblies had cracked screwposts during assembly. The Company’s salesperson went to thecustomer’s warehouse to conduct a full inspection, found 144defective items, and sent them back to the factory for rework. TheProduction Department investigated and determined the cause ofdefects. During process adjustment, the glue ?ow speed wasreduced to minimize surface ?ow marks on the back shell, result-ing in a thin, slow-melting glue line near the screw post, whichcaused cracking. The Company quickly determined a solution.The mold for the screw posts was modi?ed by adding reinforce-ment ribs around the post to increase its strength.

Key Performance

During the Reporting Period

Customer Satisfaction

Responsible Marketing

Customer satisfaction: 82.49%.

Innovation for Quality, Responsibility First

Customer Satisfaction Su-rvey Procedure Customer Satisfaction Management Procedure.

Identity access authorizationmanagement processRegular identity access auditprocessEstablish a strict externalpersonnel physical accessmanagement system toensure that access to securi-ty-controlled areas by exter-nal personnel is strictly con-trolled

invent

Xiamen Solex High-tech Industries Co., Ltd.

To regulate management activities and ensure information security andprivacy management, the Company has formulated thebased on principles regarding information securityof“Active prevention, total employee involvement, ensuring the securityof company and customer data”,and based on national informationsecurity regulations and other relevant requirements, as well as theCompany's actual situation. During the Reporting Period, Solex activelypushed forward the application for ISO 27001 Information SecurityManagement System certi?cation and ISO 27701 Privacy InformationManagement System certi?cation to obtain the relevant certi?cates in2025.

The Company has established a dedicated Information Security Manage-ment Committee to manage and approve the Company's informationsecurity management system, protect internal information security, andcoordinate information security tasks across departments, to support theCompany's operations and business development comprehensively.

Information Security and Privacy Protection

Information Security Measures Implemented

Information Security Management Committee

Encrypted communication

The headquarters andbranch o?ces have estab-lished IPSEC VPN and SSLVPN

Speci?c Implementation

Secure connections

All external systems use SSLto establish secure connec-tions

Speci?c Implementation

Identity access managementSpeci?c Implementation

Data protection

Regularly back up importantbusiness systems and verifythe availability of backupsEstablish protection mea-sures, systems, and virusscanning and cleaning plansfor malicious software

Speci?c Implementation

The Company has formulated the the and other systems, classifying information and information assets within the Company into ?ve levels based on inform-ation security and managing them accordingly. The Company updates the information assets and risk assessments annually to identify new risks anddetermine whether additional control measures are required. Each department summarizes the risk assessment results to the Information SecurityManagement Committee. The results of the assessments are used as one of the inputs for management review.

Information Security Risk Management

MembersCoordinators

Innovation for Quality, Responsibility First

Information SecurityManagement Director

Information SecurityManagement DeputyDirector

Information Asset Management Rules, Information Resource Management Procedures, the Information Security andPrivacy Risk Assessment Procedures,

ISO 27001 Information SecurityManagement System certi?cation

ISO 27701 Privacy InformationManagement System certi?cation

Information Sec-urity and Privacy Management Manual and the Information Security Man-agement Procedures,

The number of relevant data security training sessions conducted: 7;The number of participants in training: 56;Employee coverage rate in training: 100%;Total investment in data security: RMB 1.04 million;Number of incidents of information security and privacy protection violations during theReporting Period: 0.

inventXiamen Solex High-tech Industries Co., Ltd.

Tra?c Situation Monitoring

To respond to potential emergencies, implement a scienti?c, procedural, and standardized emergency response system for network and information security incidents, and build an information and network security guarantee system,the Company has formulated the and established a professional information security team to provide round-the-clock security operations services, regularly conduct security assessments, vulne-rability scans, and emergency drills, and take timely measures during information security emergencies.The Company always considers information security and privacy protection as a top priority. Each year, it conducts comprehensive, multi-level training on information security and privacy protection for both new and old employees,aiming to strengthen security measures from the ground up, thus ensuring the security of the Company's information assets and promoting steady progress in privacy protection e?orts.

Solex ensures data storage security and e?ciency through the construction of data centers and other informationsecurity infrastructure, and is equipped with ?rewalls, employee internet management systems, and otherhardware and software facilities, building a physical-logical dual-layer defense system. The Company also activelycollaborates with external security technology service providers, such as Haichuang Security, to conduct securitychecks on Solex's information systems, perform deep penetration tests, and monitor tra?c situations. It willidentify potential security risks and system vulnerabilities, and promptly ?xes vulnerabilities and reduce securityrisks.

Key Performance

During the Reporting Period

Information Security Emergency Management

Technical Cooperation

Innovation for Quality, Responsibility First

Information System Emergency Plan

To conduct strict screening and performance management of businesspartners to ensure that every product and service provided by the Compa-ny meets quality standards, the Company has established systems suchas the and theand set up a cross-department collaborationmechanism to carefully plan the supplier screening, evaluation, andassessment processes, thus establishing a comprehensive supply chainquality management system.The Company treats small and medium-sized enterprises equally andpays them within the contract payment terms. There were no overduepayments to small and medium-sized enterprises at the end of theReporting Period.

Governance战略Supply Chain Management

Risk TypeRisk Description Description

ImpactTimeframe

PotentialFinancialImpact

Market RisksGeopolitical risks

Due to uncertaingeopolitical poli-cies, there may betrade route restric-tions or changes inmarket access,a?ecting supplychain stability andcost-e?ectiveness.

Due to anti-dump-ing investigationsand other reasons,raw material priceshave signi?cantlyincreased.

Reduce depen-dence on asingle regionand promotelocal procure-ment.

Comparingprices frommultiple sup-pliers helpsobtain betterraw materialprices.

MediumLarge

Short- andmedium-term

Increasedoperatingcosts

MediumLarge

Short- andmedium-term

Increasedoperatingcosts

PriorityRanking

ResponseMeasures

Backup veri?cationfor domestic models;Small batch intro-duction and produc-tion.

Adopt multi-supplierand multi-brandmaterial procure-ment backup mea-sures to reduce risksfrom market price?uctuations.

High

Medium

Value ChainLinks of Impact

Upstream,Operations

Upstream,Operations

Procurement andDevelopment SectionResponsible for supplierdevelopment, evaluation,and regular audits, andmaintenance of evaluationrecords; also responsible forreviewing anti-terrorismsecurity evaluation reportsfor suppliers

Responsible Departments

ResponsibilitiesResponsibilities

ResponsibilitiesResponsibilities

Quality DepartmentResponsible for productquality con?rmation andassisting in supplier reviews,and promoting supplierimprovements

Responsible Departments

R&D Technical DepartmentResponsible for evaluatingand reviewing the technicalperformance of products

Responsible Departments

Sales DepartmentResponsible for customerdevelopment, evaluation,and regular audits

Responsible Departments

Innovation for Quality, Responsibility First

Probability ofOccurrence

ImpactSizeBusiness Partner Development and Management SystemBusiness Partner Security

invent

Xiamen Solex High-tech Industries Co., Ltd.

To ensure supply chain stability, the Company has established risk management processes, created long-term partnerships with key suppliers, diversi?ed the supplier base to reduce reliance on a single supplier, developed contingencyplans to address potential supply disruptions, and regularly evaluates supplier performance to ensure they meet quality, delivery, and cost requirements.Impact, Risk and Opportunity Management

Procurement personnel collect supplier information from multiple channels based on the company's developmentneeds, deeply understand suppliers' main businesses, products, quality systems, and ?nancial status. On-site assess-ments are conducted based on the , those who pass the assessments are included inthe and the Supplier/Repairer/Transporter Safety Guarantee is signed.The Procurement and Development Section uses supplier performance evaluation, auditing, procurement contracts,and procurement strategies to identify and manage quality and business risks. The Quality Control Department formu-lates an annual auditing plan based on supplier performance assessments, focusing on core suppliers. The Procure-ment Department is responsible for the uni?ed evaluation and review of supplier transactions in terms of price, service,supply capacity, etc.

Procurement personnel conduct relevant assessments based on the andtrack and manage suppliers' credit and business status in real time.

If the on-site assessment is deemed unsatisfactory, such as issues related to trade security, the Company may requirethe partner to rectify within a speci?ed period. Suppliers who meet the recti?cation standards may continue thecooperation, while those who fail to meet the standards will have their cooperation eligibility revoked.

Supplier Selection

Supplier Assessment

Supplier Evaluation

Supplier Exit

Whole-life-cycle management of suppliers

Innovation for Quality, Responsibility First

Supplier C-TPAT Questionnaire

Supplier C-TPAT QuestionnaireList of Quali?ed Suppliers

Total number of suppliers: 1,147;Total number of overseas suppliers: 36;Number of suppliers suspended due to non-compliance: 3.

inventXiamen Solex High-tech Industries Co., Ltd.

The Company has established a comprehensive supply chain manage-ment system, ensuring that suppliers meet the Company's standards andrequirements through full lifecycle reviews, while striving to create anopen and fair business environment, thereby achieving a comprehensiveimprovement in the Company's supply chain in terms of ESG.

Indicators and Objectives

The Company comprehensively examines the overall strength of suppli-ers, not only considering product quality and supply capability but alsofocusing on their performance in environmental protection, safetyproduction, and social responsibility. The Company prepares supplieremployee rights evaluation reports to examine whether suppliers engagein inappropriate practices such as child labor or forced labor and whetherthey adequately protect occupational health and employee rights. TheCompany has also developed thefor suppliers to ensure workplace safetyand employee occupational health and safety, ensuring that everyemployee works in a safe environment and promoting long-term stablecooperation and common development between the Company andsuppliers. The Company also adheres to the local procurement principle,which helps reduce transportation costs and time, enhances supply chainresponse speed, and promotes the development of the local economy.

The Company regularly conducts ESG training sessions for suppliers toenhance their awareness and capabilities in environmental protection,social responsibility, and corporate governance. These training sessionshelp promote suppliers' understanding and implementation of ESGconcepts and strengthen the overall sustainable development practicesof the supply chain.

The Company has developed a supplier MES system, an e?cient materialreceipt call-number system, and an intelligent digital procurementplatform. With the MES system, we have achieved precise scheduling anddetailed management of customer names, product names, customermaterial numbers, and delivery dates. The material receipt call-numbersystem cleverly controls the timing of suppliers' material delivery,e?ectively avoiding logistics congestion. In addition, we have optimizedthe supplier reconciliation and assessment processes through the OAsystem, enhancing overall operational e?ciency.Case Study: ESG Training for Suppliers

ESG Training for Suppliers

Supplier MES System

On November 25, 2024, the Company held an ESG-related trainingsession for suppliers, focusing on enhancing suppliers' awarenessand practical capabilities in the ESG ?eld, aiming to build a moresustainable, responsible, and e?cient supply chain systemtogether.

Key Performance

During the Reporting Period

Supplier ESG managementSupplier Digital Management

Key Performance Indicators

Number of suppliers certi?ed underquality management systemsNumber of suppliers certi?ed underenvironmental management systemsNumber of suppliers certi?ed under occupationalhealth and safety management systemsPercentage of suppliers that have signedthe Integrity AgreementThe proportion of spending on purchasingfrom local suppliers was

UnitUnitsUnitsUnits%%

2024

63.87

Innovation for Quality, Responsibility First

Supplier Environmental and Occupatio-nal Health and Safety Guarantee

Working Togetherfor Success

SDGs

Our Philosophy

Based on a multi-channel talent acquisition strategy, Solex has devel-oped a comprehensive talent development system that provides eachemployee with a tailored career development path, aiming to create adynamic corporate ecosystem that nurtures talent and fosters mutualgrowth between employees and the enterprise.

Our Actions

Protection of Employees'Rights And InterestsTraining and developmentOccupational health and safety

Employee Distribution in 2024

By Job Level

By profession

By academicquali?cation

During the Reporting Period

Solex adheres to the people-oriented principle, respects employees' rights, optimizes human resources manage-ment and performance evaluation, and enhances human resource e?ciency. The Company focuses on employeehealth and safety, and implements strict measures to ensure a safe working environment. At the same time, weprovide growth opportunities for employees, facilitate career development through training and promotions andenhance employee satisfaction and sense of belonging. We ?rmly believe that the mutual growth of employees andthe enterprise is the foundation of long-term development and are committed to creating a harmonious andwin-win working atmosphere.In strict compliance with the and Solex continuously improves its internal and standardizing employee recruitment and onboarding processes. Adhe-ring to the principle of fairness, justice, openness, and competition, the Company eradicates all forms of discrimi-nation and bias, standardizes employee recruitment and onboarding processes and provides each job applicantwith a fair opportunity to fully demonstrate their talents.

Diversity of employment

Protection of Employees’ Rights and Interests

Key Performance

By Gender

?Male2,954Person?Female1,923Person

?Senior management5Person?Mid-level management111Person?Junior management641Person?Individual contributors4,120Person

?Production2,744Person?Sales

247Person

?Technical818Person?Finance64Person?Administration153Person?Management851Person

?Below bachelor’s degree3,805Person?Master’s Degree36Person?Bachelor’s degree1,036PersonPercentage of contract workers:

100%;Total number of employees: 4,877;

Number of new employees: 1,773;Number of part-time employees: 43;Overall employee turnover rate:5.88%.

Working Together for Success

Labor Law of the People's Republic of China the Labor Contract Law of the Pe-ople's Republic of China,Human Resources Management ManualHuman Resources Management System,

Key PerformanceDuring the Reporting Period

The Company attaches great importance to talent recruitment, employing both social recruitment and on-campus recruitment to select outstanding talents. During recruitment interviews, it is forbidden to ask applicants personalinformation, detailed family address, or other questions that infringe on personal privacy. Applicants have the right to refuse to answer questions unrelated to the job. Through resume submission, departmental screening, written tests,interviews, and recruitment, the Company ensures the transparency of the recruitment process.Regarding campus recruitment, the Company held a total of 40 campus recruitment presentations and 133 career fairs in collaboration with universities such as Fuzhou University, Jimei University, Huaqiao University, and Fujian Universityof Technology, recruiting 93 talents. Regarding social recruitment, the Company mainly uses various recruitment websites (such as Boss Zhipin, Zhaopin, etc.) and headhunter channels for external recruitment.

Employee Recruitment

Case Study: Campus Recruitment Presentations and Job FairsIn 2024, the Company visited many local universities, including Fuzhou University, Fujian Agricultureand Forestry University, and Xiamen University of Technology, to host a series of campus recruitmentpresentations, career fairs, and job fairs, focusing on attracting local university graduates and contrib-uting to the development of the local employment market.

Campus Recruitment Presentations and Job Fairs

Company websiteRecruitment websiteInternal recommendationTraining institutionHeadhunting ?rms

Socialrecruitment

RecruitmentpresentationCareer fairJob fair

On-campusrecruitment

On-campus recruitment: 1,401;Social recruitment: 94;other channels of recruitment:278.

Working Together for Success

invent

Xiamen Solex High-tech Industries Co., Ltd.

Key Performance

During the Reporting Period

Diversity, Equality and Inclusivity (DE&I)

The Company has developed the clearly outlining its commitment to diversity, equality, and inclusion.The Company regularly organizes diversity and inclusion training sessions and awareness campaigns for employees to enhance their understanding ofmulticulturalism, equality, and inclusion values, aiming to foster mutual understanding and respect among employees, improve teamwork e?ciency, andstrengthen the Company’s innovation capacity. In 2024, the Company employed 4 individuals with disabilities and 45 veterans, primarily in positions suchas production sta?, security personnel, drivers, and warehouse keepers.

Knowledge Contest for Veterans in 2024

Prohibition ofdiscriminationand bias

Prohibitionof workplaceharassment

Prohibit coercive,abusive, or exploit-ative sexual harass-ment, including verbal,physical, or non-ver-bal conduct.

Prohibition ofusing child labor

Explicitly prohibitthe employment ofchild labor under theage of 16.

Prohibit forcedlaborProhibit the use ofthreats, violence,deception, or anyother form of coer-cion to force individ-uals to engage inwork.

Construction ofaccessible facilitiesProvide necessaryaccessible facilitiesfor disabled employ-ees to ensure theycan participate inwork on an equalbasis.

MultilingualsupportEnsure smoothcommunication foremployees fromdi?erent languagebackgrounds throughmultilingual sup-port.

Cross-culturalcon?ictReport to superiors orthe Human Resourc-es Department andtry to resolve throughnegotiation, compro-mise, and win-winapproaches when-ever possible.

DE&I Initiatives

Ensure genderequality and the rightto equal opportunityand freedom of choicein matters such asemployment, com-pensation, bene?ts,training, promotionopportunities, andretirement.No discrimination onthe grounds of race,social class, nationali-ty, religion, disability,gender, or politicala?liation.

Number of employees of minority nationalities: 659;Number of employees with disabilities: 4;Percentage of employees of minority nationalities in the manage-ment: 5.94%.

Working Together for Success

Diversity, Equality and Inclusivity (DEI) System,

Key Performance

During the Reporting Period

Compensation Structure

The Company has formulated the and the and other systems to further regulate the salary management of the Company's business unit leaders, ensure fairness andreasonableness in salary distribution, establish e?ective incentive and restraint mechanisms, and inspire employ-ees' enthusiasm and creativity to drive the successful achievement of the Company's strategic and annual goals.

Compensation and Bene?ts

The Company adopts the 3P salary management model ("Pay for Position, Pay for Ability, Pay for Performance")to de?ne the core components of the salary structure. At the group level, the salary control strategy fully takesinto account the management characteristics of each subsidiary, allowing them to design and manage theirsalary structures independently within the framework of the group's overall compensation system, ensuring theprecision and e?ectiveness of the incentive system. In addition, the Company's incentive mechanism integratesMaslow's hierarchy of needs theory and the total compensation theory, combining both material and spiritualincentives to e?ectively balance short-term and long-term employee motivation in line with the corporateculture.

Performance Evaluation Mechanism

The Company has implemented a "system-based, hierarchical" performance evaluation system, with assessmentperiods spanning monthly, quarterly, and annually, to align with the characteristics and skill levels of di?erentpositions. The performance results are used for performance salary and bonus calculation, salary adjustments,promotions, position adjustments, termination of labor relations, training, annual awards, and special welfareapplications, among other dimensions. The Company promotes a culture of transparency and openness in perfor-mance management. It has established mechanisms for performance feedback, interviews, and appeals. Employ-ees can raise objections either during the assessment period or within three days of receiving the results, anddirectly appeal to their department head or the Human Resources Department to ensure clear communication andprotect the legitimate rights and interests of employees.Enhancement of Employee Well-being

Basic Compensation Structure

Refers to the base salary determined according to the employee’s position, capabilities, etc., including basicsalary and comprehensive post wage.Refers to welfare allowancespaid in cash, mainly includ-ing meal allowances, trans-portation allowances, andenvironment allowancesIncludes performance bonuses,overtime pay, special rewards,and annual on-the-job incen-tive bonuses, etc.

Annual basesalaryAnnual welfareallowanceAnnual variable incomeOther bene?ts

Annual ?xedsalary

Annual totalcash income

Annual totalcompensation

Such as social insurance (pension, medical, unemployment, work-related injury, and maternity insurance),housing provident fund, annual health check-ups, holiday gifts, mutual aid fund, housing assistance programs,and other employee welfare initiatives.

BonusesInsuranceAccommodationLeaveEducationHealthSubsidiesDiningLeisure activitiesOthers

Social insurance coverage rate: 100%;Average paid annual leave days per employee: 6;

95% of employees underwent regular performance and career development assessments.

Working Together for Success

Performance bonus, festival bonus, R&D bonus, etc.Social insurance contributions as required by the lawProvide housing fund contributions, sta? dormitories, etc.Public holidays, special leave, leave in lieu, personal leave, sick leave, marriage leave, mater-nity leave, pregnancy check leave, breastfeeding leave, paternity leave, bereavement leave,work-related injury leave, parental leave, etc.The Company provides opportunities for further education and trainingAnnual health check-ups, gynecologic examinations, special post-speci?c health checks, etc.Birthday allowance, compassionate grants, marriage allowance, maternity allowance, andhigh-temperature allowanceProvide meal allowances or free mealsFestival activitiesEquity incentives. Currently, 116 directors, senior management, middle management, andkey technical (business) personnel of the Company have received equity incentives and hold

6.975 million shares.

Salary Management SystemPerformance Evaluation System

invent

Xiamen Solex High-tech Industries Co., Ltd.

During the Reporting Period, the Company held the ?rst session of the Fifth Employee Congress and Labor UnionMember Congress. During the meeting, a new election of the committee was held, and the and the revised were approved. The Con-gress collected proposals on key areas such as employee welfare, labor relations, occupational health and safety,and production operations, totaling 73. Each proposal was thoroughly discussed and carefully answered to ensureits rationality and e?ectiveness. Additionally, a dedicated Q&A session for employee representatives was estab-lished, where management sincerely listened to their opinions and feedback. This initiative aims to boost employ-ee satisfaction and strengthen the enterprise’s cohesion.To improve the suggestion management system and foster an open and inclusive management atmosphere, theCompany has placed suggestion boxes in prominent locations to collect employee opinions, suggestions,complaints, and feedback. In handling this information, the Company adheres to the principles of hierarchicalresponsibility and centralized handling, ensuring that each piece of information is kept con?dential and respond-ed to promptly, thereby e?ectively addressing employee concerns and improving internal communication e?cien-cy. Additionally, the Company has established a Labor Dispute Mediation Committee, aimed at regulating thenegotiation and mediation processes of labor disputes, promoting harmonious and stable labor relations.

Democratic Management

The Company is committed to helping employees with di?culties, protecting women's rights and interests, payingattention to employees' mental health, and actively carrying out cultural and sports activities to create a caring,equal and healthy working environment, and enhance team cohesion and employees' sense of belonging.Employee Care

The Company has formulated the and established the So-lex Employee Mutual Aid Fund, aiming to provide additional ?nancial support to employees facing temporary?nancial di?culties due to illness, accidents, and other unexpected events. The fund is raised through a combina-tion of voluntary employee contributions and company subsidies, ensuring stable and sustainable funding. TheFund Management Committee is responsible for the daily administration of the fund, ensuring that all fund expen-ditures are transparent, reasonable, and in compliance with regulations. Employees facing personal or family?nancial crises may apply for assistance according to the procedures outlined in the management measures toalleviate their ?nancial burden.

Supporting Employees with Di?culty

Employee Suggestion Box

During the Reporting Period

Key Performance

Number of proposals deliberated by the Labor Union: 46;Proportion of Labor Union members to in-service employees: 91.27%;Employees participating in the satisfaction survey: 3,290;Employee participation rate in the satisfaction survey: 88.27%;Employee satisfaction: 98.69%.

During the Reporting Period

Key Performance

The Company's Mutual Aid Fund assisted a total of 30employees and allocated RMB 118,400 for medicalsubsidies;the Settlement Plan assisted 3 employees with RMB300,000 .

Working Together for Success

Solex Integrity and Self-Discipline Management System Human Resources Management System

Solex Employee Mutual Aid Fund Management Measures

invent

Xiamen Solex High-tech Industries Co., Ltd.

Case Study: Employee Emotional Support

Emotional Support Corner Interactive Candy Pickup Area

Key Performance

During the Reporting Period

The Company deeply recognizes the importance of employee mental health, and through establishing a psycho-logical support system, encourages employees to cope with stress positively, advocates for open communication,and fosters a supportive and understanding work environment.Solex attaches great importance to the special needs of female employees and the challenges they face in balanc-ing work and family. Therefore, the Company strictly complies with national and Fujian provincial regulations onspecial protections for female employees, ensuring that female employees are entitled to special leave such asprenatal check-up leave, maternity leave, and breastfeeding leave. Regarding the maternity leave policy, theCompany o?ers up to 158 days of leave to ensure that female employees can have su?cient rest and physicalrecovery. We are committed to creating a supportive and life-respecting working environment for women and havespeci?cally set up a comfortable and cozy mother-baby room to provide convenience for female employees afterchildbirth. Additionally, on International Women's Day (March 8), the Company organizes a variety of activities,such as ?oral arrangement, to further foster a corporate culture that respects and cares for women.

The Company has set up an Employee Emotional Support Corner in the o?ce building's lounge area, whichfeatures a suggestion box for employees to anonymously submit postcards to express their concerns orconfusion. These are then addressed by emotional counselors and psychological consultants who o?erprofessional psychological support. Additionally, a "Happy Sharing" board is set up each month toshowcase employees' joyful moments, encouraging positive interactions. The Company also provides amobile poster basket, containing candies, small gifts, and psychology books, available for employees to use.Employees are encouraged to leave sticky notes with comments on the displayed photos and events topromote virtual interactions among colleagues and spread positive energy within the team.

Protecting the Rights and Interests of Female EmployeesEmployee Mental Health

Women's Day FlowerArrangement Activity

Proportion of female managers: 23.81%;Number of employees who took maternity leave: 17;Return rate from maternity leave: 100%;Number of employees who took parental leave: 166;Return rate from parental leave: 100%.

Working Together for Success

invent

Xiamen Solex High-tech Industries Co., Ltd.

Basketball Tournament

Parent-Child Visit to Aquarium

Organizing Parent-Child Movie Outing

Mid-Autumn Festival Parent-Child DIY Mooncake Activity

Solex ?rmly believes that employee happiness and teamcohesion are the cornerstone of business development.We are dedicated to creating a human-centered workingenvironment by regularly organizing activities such asbasketball tournaments, parent-child movie outings,Mid-Autumn Festival DIY events, and other cultural,sports, and holiday activities to enrich employees' sparetime, enhance mutual understanding and friendship,and increase the sense of belonging among employees.

Organizing Employee Cultural and Sports Activities

Working Together for Success

Solex adheres to the philosophy that talent is the primary productive force, e?ectively transforms businessdevelopment strategies into talent development strategies, and ensures the smooth realization of its strategicgoals through the establishment of a comprehensive talent training system.

The Company has developed a series of standardized management systems for employee training, including thethe theand theand has set training plans and evaluation procedures. Training evaluations are based on the KirkpatrickFour-Level Evaluation, which consists of four levels of evaluation: Reaction, Learning, Behavior, and Results. It aimsto provide a solid institutional guarantee for the growth of talents and ensure the smooth implementation oftraining activities.

Employee Training

Training and Development

Training Platform Construction

Building of Trainer TeamThe Company has established an internal trainer team to e?ectively pass on the Company’s corporate culture,professional expertise, and management experience, thereby fostering talent cultivation and organizationallearning and development. To support this, we have developed the whichcovers the assessment, selection, certi?cation, teaching process, responsibilities, and incentive standards forinternal trainers. Currently, internal trainers have delivered 156 courses this year, with a total teaching time of 310hours.The Cloud Learning Platform of Solex e?ciently integrates and consolidates abundant internal and external courseresources, not only realizing detailed management and supervision of employee training courses, ensuringtraining quality and e?ectiveness, but also providing employees the opportunity to engage in self-learning.Employees can freely select courses on the platform according to their work needs and personal interests, enablingself-improvement and development, and contributing to the enterprise's continuous growth and the personalprogress of employees.

Trainer System

Operational Level

Institutional Level

Resource LevelCourse System

Cloud Learning Platform

Training System Development

Overall Approach to Training System DevelopmentAt the institutional Level, ensuring strong support for training e?orts;At the resource Level, providing quality input for training e?orts;At the operational Level, ensuring smooth output of training e?orts;From the bottom up, establishing the framework,Filling in the modules, and operating e?ciently.

Working Together for Success

Internal Trainer Management System,

Rules of Training Management,Training Management System, Internal Trainer Management System, theExternal Training Management System, Teaching Management Plan for Solex Middle and Senior Mana-gement,

invent

Xiamen Solex High-tech Industries Co., Ltd.

Case Study: "Xiaosong Camp" Training

Training Site

Tiered Training

The Company has developed a tiered talent development program, which includes Xiaosong Camp, High-PotentialTalent Training Camp, Grassroots Team Leader Training Camp, Qingsong Camp, and Jinsong Camp, extending allthe way to the senior management. By analyzing the current capabilities of employees at each level, the Companyimplements targeted training measures for employees at di?erent levels to bridge the gap between current skillsand future competency requirements.

In July 2024, new graduates from universities participated in the "Xiaosong Camp” training organized bythe Human Resources Department. The purpose is to help them transition from students to professionals,cultivate a proactive learning attitude and communication skills, deepen their understanding and recogni-tion of the Company culture, and enhance their ability to adapt to the job. The training methods includein-person lectures, class discussions, and online public courses. The training content is divided into fourstages: skill development, public courses, production internships, and job trials. Additionally, departmentmentors provide one-on-one guidance to help fresh graduates quickly adjust to their roles.

Tiered TrainingRecipientsSenior ManagementJinsong CampQingsong CampGrassroots CampHigh-Potential CampXiaosong Camp

Training ProgramsStrategy decoding and strategy implementation, Business management, Change leadershipNon-?nancial managers' ?nancial management, Human resources management for non-HR managers, E?cient team building, LeadershipBasic management communication and collaboration, Subordinate cultivation andcoaching, Planning management, Review and growthTeam leader role awareness, Work skills, TWI site management, Quality management,O?ce software applicationExecution, Communication and collaboration, Project management, Problem analysisand solutionCorporate culture, Enterprise systems, Role transformation, Career planning,Time management, Goal management, Mentor-mentee pairing

Key Performance

During the Reporting Period

Investment in employee training: RMB 543,800; Number of training sessions: 499; Total training hours: 22,443; Total number of employees trained: 4,016;Total attendance (person-time): 8,654; Average training hours per employee per year: 4.60; Employee training coverage: 82.31%.

Working Together for Success

Solex is dedicated to building diverse and seamless career developmentchannels, along with a fair and impartial assessment mechanism. Bycreating a dual-career development system, the Company tailorsdevelopment paths for both management and non-management roles.The Company also thoughtfully provides employees with personaldevelopment plans to ensure that each employee has the opportunity togrow and improve in roles and ?elds that suit their strengths.

Promotion and Development

In strict accordance with theand other relevant laws and regulations, and upholding the principleof "safety ?rst, prevention-oriented, and comprehensive management", Solex hasformulated theand established a dual prevention mechanism including a safety risk gradingand control system as well as hazard identi?cation and remediation measures,e?ectively preventing major safety accidents. The Company has built a sound "OneJob, Two Responsibilities” safety responsibility system, ensuring that each depart-ment and position has clear safety production responsibilities, and has successfullypassed the enterprise safety production standardization evaluation.

Safety ProductionOccupational Health and Safety

Safety Committee

The Company has established a Safety Production Committee, which is responsible for the overall planning and supervision of the implementation of theCompany's safety production tasks. Furthermore, the Company has established an evaluation mechanism, set safety evaluation standards and developedpractical evaluation indicators, grading and standards.

Senior Management

ManagerSection ChiefHeadShift Leader

Principal EngineerSenior EngineerIntermediate EngineerJunior Engineer

Dual-Career Development Paths

Organizational Structure of the Safety Production CommitteeKey Performance

During the Reporting Period

Chief Engineer

Safety ResourcesDepartment

Chief TechnicalEngineerSafety StandardEngineer

Technology ParkSafety EngineerHealth/Human-WaterPark Safety Engineer

PME Division

ShowerDivision

Beauty andHealth Division

Intelligent Electr-onics Division

Kitchen and BasinBeauty SpaceDivision - R&D

New CategoryIncubationDivision

InnovationDesign Center

Group Center

President's O?ce

Zhangzhou Solex's Level-Three Work SafetyStandardization Certi?cateSolex's Level-Three WorkSafety StandardizationCerti?cate

Number of employees having successfully transitionedor applied internally: 390.

Working Together for Success

Law of the People's Republic of China on Work Safety,the Law of the People's Republic of China on Prevention and Control of Occupatio-

Safety Production and Occupational Health Target ManagementSystemnal Diseases,

Zhangzhou Solex Safety Hazard Inspection Site

Safety Production Targets

Safety Production Risk ManagementThe Company has established a dual prevention mechanism including asafety risk grading and control system as well as hazard identi?cation andremediation measures, identi?es and controls safety production risks andcompiles a list of hidden dangers related to safety accidents, fundamentallypreventing safety accidents and establishing a long-term safety productionmechanism.Meanwhile, the Company uses the LEC method to conduct risk assessmentsof potential safety hazards, systematically prepares a risk list, and thendevelops corresponding risk prevention and control measures according tothe operation content outlined in the list. These measures aim to minimizesafety risks and e?ectively protect employees' lives.During the Reporting Period, the Company conducted multiple comprehen-sive safety checks on production sites according to the established safetyinspection plan. In 2024, the Safety Department, on-site departments, andsecurity personnel conducted a total of 287 inspections, including daily,monthly, special, and irregular inspections. A total of 4,143 safety hazardswere identi?ed, and all 4,143 were recti?ed with a 100% completion rate.

Solex's Goals and Planning

Safety Risk Classi?cation and Assessment ProceduresKey Performance

During the Reporting Period

Determine theassessment scopeForm an assessment

teamCollect information,conduct on-site surveys

Determine theassessment method

Analyze theassessment content

Propose safetycountermeasuresSummarize and concludethe assessment resultsPrepare assessment

reports

Risk identi?cationRisk assessmentRisk managementand control

Qualitative analysisQuantitative analysis

Implementing Safety AccountabilityAdhering to the principles that principles that "safety must be managedalongside production" and "whoever is in charge is responsible", theCompany has created a safety production responsibility list anddeveloped an annual safety production responsibility letter and set safetyproduction goals. During the Reporting Period, the total number of safetyresponsibility letters signed by employees at all levels was 6,991.

Investment in safety production: RMB 6,873,500;Number of work-related deaths：0 person;Number of working days lost due to work-related injuries:

747 working days;Lost Time Injury Ratio LTIR: 2.05.

Working Together for Success

Continuous improvement of safety production management systemEnhancement of employee safety awareness and skillsOptimization of occupational disease prevention facilitiesReduction of occupational disease incidence

Achievements in 2024

Achieve zero accidents for the yearEnhance safety managementStrengthen safety trainingImprove emergency rescue system

Goals for 2025

Build a long-term safety production mechanismsPromote intelligent safety managementStrengthen international cooperation and communicationFoster a safety culture environment

Long-term Plan

Laws and regula-tions, standardsand norms, corpo-rate technical data,management ?les

Case Study: Special Emergency Drills

Safety Information Platform - Hazard Identi?cation Diagram

Health Park Fire Emergency Drill

Management of Hazardous Chemicals

Digital Management of Safety Production

Emergency Response Plans and Training DrillsTo further strengthen employee safety management, the Company has formulated thewhich regulates the management process of statistics, procurement, acceptance, storage and protection ofchemicals, and also speci?es emergency response measures for chemical ?re, leakage, burning, and corrosion. TheCompany regularly conducts special inspections on hazardous chemicals and promptly recti?es identi?ed safetyhazards. Additionally, the Company attaches great importance to employee education and training regardinghazardous chemicals, and regularly organizes specialized training sessions to improve employees’ emergencyresponse skills.

To prevent and control potential accidents or emergencies, the Company has developed thespecifying organizational structure, division of responsibilities, emergency facilities, and responsemeasures. The plan is designed to e?ectively prevent and manage safety production accidents, minimizing casual-ties and property damage. The plan also includes detailed process supervision measures for daily supervision,dangerous operations, and safety management of related parties to ensure comprehensive safety managementimplementation.The Company regularly conducts various forms of safety education and training, activities, and ?re drills to contin-ually enhance employees’ safety awareness and improve their self-protection and emergency response abilitiesin the face of emergency situations, e?ectively reducing the likelihood of accidents and ensuring a safe and stableproduction environment.The Company follows a dual prevention mechanism and fully integrates safety management with informationtechnology. By establishing a safety document system, a safety information platform, conducting safety culturemanagement activities and training, and setting up an emergency materials management ledger, the Companyhas upgraded safety production standards and enabled real-time monitoring of potential safety hazards.

From January to December 2024, in order to strengthen

employees’ ?re safety awareness and improve their

evacuation, escape, and emergency response capabili-

ties for various sudden incidents, the Company

organized 28 ?re and specialized emergency drills across

various departments, involving approximately 6,931

participants, e?ectively enhancing their safety aware-

ness and emergency response capabilities.

Working Together for Success

Chemical Management M-ethods,

First Aid Plans for V-arious Injuries,

Case Study: Safety Month Outdoor Activities

Safety Month Outdoor Activities

The Company adheres to the occupational healthand safety policy of "Workplace Safety, Preven-tion-Centric; Employee Well-being, SustainableDevelopment" and has established theand the Through rigorous and comprehensive sy-stem development and practical implementation,the Company ensures that its occupational healthand safety management system meets the require-ments of industry standards. During the ReportingPeriod, the Company obtained the OccupationalHealth and Safety Management System Certi?cate.

Occupational Health

Occupational Disease Hazard Identi?cation

The Company complies with laws and regulations such as theIt always prioritizes employee health and regularlycond-ucts detailed inspections of occupational disease hazards and sources across its parks based on employees'needs to identify occupational disease hazards such as noise, laser radiation, formaldehyde, tin dioxide, grindingdust, isopropyl alcohol, alumina dust, and high temperatures have been identi?ed as . Testing reports andanalyses have been provided for each risk.

To further strengthen safety awareness and ignite employees’ enthusiasm for safety management, theCompany carefully planned and hosted a series of outdoor activities during the Work Safety Month. Duringthe activities, employees participated in a series of creative activities, including energy-saving sciencepopularization video challenges, smooth green safety channels, and safety knowledge skill challenges,which subtly embedded safety concepts in their minds. These creative activities not only enhanced employ-ees' safety awareness but also fostered the dissemination and learning of safety knowledge.

Some Hazard Factors and Their Sources:

Key Performance

During the Reporting Period

Noise, tin dioxide, isopropyl alcoholNoise, alumina dustNoise, grinding dustNoise, high temperatures,formaldehyde

Occupational Disease Hazard Factors

Re?ow soldering, wave solderingMilling machines, mold polishingGrinding machinesInjection molding

Hazard Factor Sources

Zhangzhou Solex'sISO 45001 OccupationalHealth Management

System Certi?cateSolex's ISO 45001

OccupationalHealth ManagementSystem Certi?cate

Total Investment in Safety Training: RMB 56,400;Total Hours of Safety Training: 8,263 hours;Safety Training Sessions: 1,371 sessions;Number of participants in safety education and training sessions: 22,049 person-times;Coverage rate for safety education and training: 100%;Coverage rate for safety risk protection training: 100%;The number of security emergency drills: 53.

Working Together for Success

OccupationalDisease Protective Equipment Management System

Law of the People's Republic of China on Prevention and Control of Occupational Diseases, the Workplace Occupational Health Management Rules, and the Occupati-onal Health Technical Service Organization Testing Standards.

High temperaturesInstall cold air pipes or airconditioning in high-tem-perature areas and pro-vide fansProvide adequate heat-stroke prevention medica-tion that meets hygienestandards

Hazardous organic chemicals

Improve workplace venti-lationProvide employees exposedto hazardous organic chemi-cals with protective masksand replace them regularly

Noti?cation Card of Occupational DiseaseHazards in the Workshop

Employees Wearing Masksand Gloves at The Workplace

Occupational Disease Prevention MeasuresBased on testing results, the Company selects and equips employees with protective equipment that meetsnational or industry standards, chooses occupational disease protective facilities, and conducts regular mainte-nance, and strictly implements occupational health management measures. During the Reporting Period, theCompany arranged occupational health check-ups for its employees. The medical reports showed no signs ofoccupational diseases. In accordance with regulations such as thethe Company has posted hazard noti?cation cards in various departments and workshops of theXiamen park to inform on-site personnel of potential hazards, ensuring that every employee works in a safe andhealthy environment and strengthening the protection of employees' health.

Key Performance

During the Reporting Period

ProtectiveMeasures

ProtectiveMeasures

ProtectiveMeasures

ProtectiveMeasures

Category of occupationalDisease Hazards

Noise

Select low-noise equip-mentProvide suitable earplugsfor employees working innoisy positionsShorten the exposuretime for employees work-ing in noise-exceedingpositions

Dust, grinding dustRegularly maintain dustremoval systemsProvide suitable dustmasks for employees andreplace them regularly

Percentage of special operators licensed: 100%;Investment of work-related injury insurance for employees:RMB 2,229,700;Coverage rate of work-related injury insurance for employees: 100%;The detection rate of occupational disease hazards: 100%;Number of new cases of new occupational diseases: 0.

Working Together for Success

Occupational Disease Hazard Warning Signs inthe Workplace,

Giving Back to Society,Advancing PublicWelfare Together

SDGs

Our Philosophy

Solex, while pursuing excellence in business achievements, remainscommitted to its social responsibilities, and actively ful?lls its role as aresponsible corporate citizen. The Company ?rmly believes that thegrowth of a business should go hand in hand with the progress of society,and therefore, it has always adhered to the commitment of giving back tosociety, and participates in various aspects of social welfare throughconcrete actions.Our Actions

Social WelfareRural Revitalization

invent

Xiamen Solex High-tech Industries Co., Ltd.

Key Performance

Case Study: Donation of Sports Equipment and Teaching Aids for the Disabled

During the Reporting Period

Solex, with a strong commitment to social responsibility, proactivelytakes on its corporate duties. The Company is not only dedicated toexcellence in the economic sector but also actively participates in publicwelfare, including education and support for the disabled, demonstratingits social responsibility through concrete actions.

Social Welfare

On December 5, 2024, Solex donated sports and recreational equipment, along with daily educational toys valued at RMB 15,000, to Haicang FuleHome, a facility under the China Disabled Persons’ Federation. This batch of materials includes table tennis tables, exercise bikes, speakers andmicrophones, projectors and screens, as well as a variety of educational toys such as clay, DIY materials, magnetic educational toys, etc. Thisdonation is not only a heartfelt expression of care for the disabled residents at Haicang Fule Home, but also a tangible demonstration of Solex’scommitment to social responsibility.

Donation of Sports Equipment and Teaching Tools for the Disabled

Total public welfare input: RMB 109,400.

Giving Back to Society, Advancing Public Welfare Together

The Company actively responds to the national employment povertyalleviation policy, and strictly follow the policies outlined in theThe Company provides abundant employment opportunities to impover-ished laborers and o?ers continuous career development support,helping many impoverished laborers achieve stable employment. TheCompany practices social responsibility with concrete actions, andcontributes to poverty alleviation and rural revitalization, demonstratingthe Company's proactive role in promoting sustainable social develop-ment.

invent

Xiamen Solex High-tech Industries Co., Ltd.

Case Study: Funding for the Gunong Farm Central Primary School Sports Meeting

Case Study: Zhangzhou Solex 298 Youth Talent Apartment launched a book sharing and donation event

Rural Revitalization

During the Reporting Period, Zhangzhou Solex 298Youth City Talent Apartment meticulously planned andlaunched a unique book sharing event. This event aimsto foster literary vibrancy, facilitate knowledge sharing,and ignite intellectual curiosity among young talents. Itencourages young residents in the apartment tocontribute pre-loved quality books within the communi-ty. By doing so, dormant books can be put to greateruse, providing more people with access to valuableknowledge and the enjoyment of reading.

On May 17, 2024, Zhangzhou Solexprovided necessary ?nancial sup-port for the successful organiza-tion of the Gunong Farm CentralPrimary School Sports Meeting.The smooth progress of the sportsmeeting ignited students' enthusi-asm for sports and strengthenedtheir team spirit. This initiative byZhangzhou Solex demonstratesthe enterprise's attention and sup-port for youth sports education,and contributes to the healthygrowth of children.

Zhangzhou Solex 298 Youth City Talent Apartment Book Donation Event

Gunong Farm Central Primary School Sports Meeting

Key Performance

During the Reporting Period

Number of poverty-alleviation employment bene?ciaries: 336.

Giving Back to Society, Advancing Public Welfare Together

Notice bythe Ministry of Human Resources and Social Security, Ministry of Finance,and the State Council Leading Group O?ce of Poverty Alleviation andDevelopment of Further Improving Employment Poverty Alleviation Work.

Postscription

invent

Xiamen Solex High-tech Industries Co., Ltd.

Annex

Environmental Performance

Key Performance

RMB 10,000

casecase

1,094.50

1,448.81

Performance IndicatorUnit20242023

Energy Consumption

kWhlitersliters10,000 m

MWh

5,000,00044,920.6862,110.68

12.09

60,054.01

5,044,96596,997.3671,822.31

24.56

63,827.86

Water Resource Consumption

m

m

463,75147,330

573,81359,820

Pollutant Emission

Total environmental investmentNumber of environmental incidentsNumber of violations of laws and regulationsconcerning environmental protectionPhotovoltaic energy yieldGasolineDieselNatural gasTotal purchased electricityTotal water consumptionRecycled water consumptionWaste gas emissionsWastewater dischargesQuantity of general waste generatedQuantity of hazardous waste generatedWaste recovery rate

10,000 m

10,000 m

tonton%

513,305.88

28.9458

1,914.291,287.94

373,907.82

24.2750

1,947.541,100.17

Social Performance

%personpersonpersonpersonperson%

%

%person

%person

%

%

%RMB 10,000sessionpersonPerson-timehourhour/person

4,877

1,773

5.88

98.69

23.81

54.38

4,0168,65422,443

4.60

4,688

1,143

4.56

97.05

24.17

90.32

48.85

3,7428,00521,096

4.50

Performance IndicatorUnit20242023Percentage of contract workersTotal number of employeesNumber of part-time employeesNumber of new employeesNumber of employees with disabilitiesNumber of employees of minority nationalitiesEmployee turnover rateEmployee satisfactionProportion of female managersNumber of employees who took maternity leaveReturn rate from maternity leaveNumber of employees who took parental leaveReturn rate from parental leaveSocial insurance coverage rate

Investment in employee trainingNumber of training sessionsTotal number of employees trainedTotal attendanceTotal training hoursAverage training hours per employee per year

Compensation and Bene?ts

Employee Performance

Protection of Women's Rights and Interests

Training and Development

%

Percentage of employees underwent regularperformance and career development assessments

Postscription

inventXiamen Solex High-tech Industries Co., Ltd.

Governance Performance

meetingproposal

personmeetingproposalmeetingproposalRMB 10,000

meeting

hourpersonperson

%

case

1,199.50

9.50

3,646

40.50

1,128.62

7.50

Performance IndicatorUnit20242023

Total number of General Meeting of Stockholders convenedNumber of proposals deliberatedNumber of members of the Board of DirectorsNumber of meetings of the Board of Directors convenedNumber of proposals deliberatedNumber of meetings of the Board of Supervisors convenedNumber of proposals deliberated

开展法律培训次数Number of legal training sessions conductedTotal hours of legal training conductedNumber of participants in legal trainingNumber of individuals who signed the integrity commitment letterSigning rate of integrity commitment letterNumber of corruption lawsuits ?led and concluded

personsession

hourcaseRMB 10,000%person%sessionsessionentitycaseRMB 10,000

8,263

20,511.37 7.47 818

82.49

1,147

10.94

1,802

20,353.17

6.82

83.40

1,338

38.88

Performance IndicatorUnit20242023Number of work-related deathsNumber of safety emergency drillsTotal hours of safety trainingNumber of new cases of new occupational diseasesR&D investment amountProportion of R&D investment to operating incomeNumber of R&D personnelCustomer satisfactionNumber of relevant training sessions conducted

Total number of suppliers

Total public welfare input

Occupational Health and Safety

Supply Chain Management

Public Welfare

Customer ServiceInformation Security

Research and Innovation

Board of Supervisors

Board of DirectorsGeneral Meeting of Stockholders

Remuneration PolicyCompliance and Business Ethics

Number of incidents of information security andprivacy protection violations during the Reporting PeriodNumber of incidents with signi?cant risk andimpact in the supply chain

Remuneration of directors, supervisors,and o?cers (including both current and departing)

Postscription

inventXiamen Solex High-tech Industries Co., Ltd.

Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 - Sustainability Report (for Trial Implementation) Topic Index Table

Indexes

DimensionS/N

Response to Climate ChangePollutant EmissionsWaste DisposalEnvironmental Compliance ManagementEnergy UtilizationWater resource utilizationCircular EconomyRural RevitalizationContribution to SocietyInnovation-drivenSupply Chain SecurityEqual Treatment of Small and Medium-Sized EnterprisesProduct and Service Safety and QualityNote: It includes two topics: product safetyand quality, and customer rights protection.Data Security and Customer Privacy ProtectionEmployeesNote: It includes three topics: employee rights protection,employee training and development, and occupational health and safetyDue DiligenceCommunications with StakeholdersAnti-commercial Bribery and Anti-corruptionAnti-unfair CompetitionLow-carbon ProductsProtection of Shareholders' Rights and InterestsStandardized corporate governanceTax ComplianceRisk ManagementESG Governance

Ecosystem and Biodiversity Protection

Technology Ethics

Energy Saving and Carbon Reduction for Green DevelopmentEnergy Saving and Carbon Reduction for Green DevelopmentEnergy Saving and Carbon Reduction for Green Development

Innovation for Quality, Responsibility FirstInnovation for Quality, Responsibility FirstInnovation for Quality, Responsibility FirstInnovation for Quality, Responsibility FirstWorking Together for SuccessESG ManagementESG ManagementStandardized Governance Bolstering Steady DevelopmentStandardized Governance Bolstering Steady DevelopmentSpecial Topic-Advancing Green and Intelligent Upgrades, Leading DevelopmentStandardized Governance Bolstering Steady DevelopmentStandardized Governance Bolstering Steady DevelopmentStandardized Governance Bolstering Steady DevelopmentStandardized Governance Bolstering Steady DevelopmentESG Management

Energy Saving and Carbon Reduction for Green DevelopmentEnergy Saving and Carbon Reduction for Green DevelopmentEnergy Saving and Carbon Reduction for Green DevelopmentEnergy Saving and Carbon Reduction for Green DevelopmentGiving Back to Society, Advancing Public Welfare TogetherGiving Back to Society, Advancing Public Welfare TogetherInnovation for Quality, Responsibility First/ (the Company’s business scope does not involve scienti?c research, technology development,or other activities sensitive to technology ethics, such as life sciences and arti?cial intelligence.)

/ (The Company's production and operation activitieshave minimal impact on the ecosystem and biodiversity.)

IssuesCorresponding Section

Social

Environmental

Self-Determined Disclosure Topics

Sustainable Development Related Governance

Postscription

invent

Xiamen Solex High-tech Industries Co., Ltd.

2021 GRI Sustainability Reporting Standards ("GRI Standards") Topic Index Table

Company Pro?leCorporate Culture

Business LayoutMilestones in 2024Major HonorsMembership in Industry AssociationsAdvancing Green and Intelligent Upgrades, Leading Development

ESG Governance SystemResponse to Sustainable Development Goals

Materiality Assessment

Analysis of StakeholdersGovernance through the General Meeting of Shareholders, Board of Directors, and Board of Supervisors

Risk Control and Internal ControlInformation Disclosure and Investor Relations Management

Business EthicsResponse to Climate ChangeEnvironmental ComplianceResource Utilization

Innovation-driven

Product qualityProtection of Customers' Rights And InterestsInformation Security and Privacy Protection

Supply Chain ManagementProtection of Employees’ Rights And Interests

Training and DevelopmentOccupational Health and Safety

Social WelfareRural RevitalizationESG Performance Chart

Indexes

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2-2/2-3/2-42-22201-1/302-1/302-3/303-5/305-4/305-52-12-12-12-12-12-12-6/301-32-12/2-13/2-14/2-17/2-222-223-1/3-2/3-32-292-9/2-10/2-11/2-12/2-13/2-17207-12-27/2-29/201-12-16/2-26/205-2201-2/305-1/305-2/305-3/305-4/305-52-27/303-2/303-4/306-1/306-2/306-3301-1/301-2/302-1/302-3/302-4/303-4/303-5/416-1/416-2417-1418-12-6/308-1/308-2/414-1/414-22-7/401-1/401-2/401-3/405-1/406-1/408-1/409-1404-1/404-2403-1/403-2/403-3/403-4/403-5/403-6/403-7/403-8/403-9/403-10415-1/413-1413-1201-1/302-1/302-3/303-5/404-1//

Chapters and SectionsGRI Sustainability Reporting Standards ("GRI Standards")About This ReportMessage from the ChairmanSustainable Development Highlights in 2024About SolexResponsibility Focus - Special Topics

ESG ManagementStandardized GovernanceBolstering Steady DevelopmentEnergy Saving and Carbon Reductionfor Green DevelopmentInnovation for Quality, Responsibility FirstWorking Together or SuccessGiving Back to Society, Advancing Public Welfare Together

Annex

Xiamen Solex High-tech Industries Co., Ltd.

invent

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Dear reader,Thank you for reading this report! This is the 2024 Environmental, Social, and Governance (ESG) Report published by Solex. In order to continuouslyimprove our ESG management work and enhance our ability to ful?ll social responsibilities, we sincerely hope that you will evaluate this report and provideyour valuable opinions.

1.Which of the following stakeholders is most relevant to you in relation to Solex?

□Shareholder & Investor □Customer □Supplier □Employee □Social Organization □Industry Partner □Government □Media

2.Your overall assessment of the report:

□Excellent □Good □Average □Below Average □Poor

3.Your comments on the layout of this report:

□Excellent □Good □Average □Below Average □Poor

4.How do you rate the information, data, and completeness disclosed in this report?

□Very High □High □Average □Low □Very Low

5.What aspects of the report do you think need improvement?

□Layout □Length of Report □Topic Coverage □Publication Format/Media

6.What topics in the report are of most interest to you? (Multiple choices)

□Corporate Governance □Supply Chain Management □Protection of Customers’ Rights and Interests

□Safety Production □Environmental Protection □Employee Care □Social Welfare

□Others

7.What other suggestions do you have for this report?

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Thank you again for yourunderstanding and support of our work!

Contact informationTel.: 0592-6192666Email: IRM@solex.cn