SinofuseSustainabilityReport

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COMPANY PROFILECHAIRMAN'S SPEECHABOUT SINOFUSE ELECTRIC

SUSTAINABLE DEVELOPMENT(ESG) MANAGEMENTESG GOVERNANCE STRUCTUREMATERIALITY ANALYSISCOMMUNICATIONS WITHSTAKEHOLDERMATERIALITY ISSUE MATRIX

CORPORATE GOVERNANCE& STABLE MANAGEMENT

CLIMATE ACTION &GREEN SYNERGYCORPORATE GOVERNANCESTRUCTUREBUSINESS ETHICS &ANTI-CORRUPTIONCOMPLIANCE MANAGEMENT &RISK MITIGATIONLDATA SECURITY & PRIVACYPROTECTION

CLIMATE RISK ADAPTATIONENVIRONMENTAL MANAGEMENTSYSTEMPOLLUTANT TREATMENTRESOURCE UTILIZATION ANDCONSERVATIONECOLOGICAL CONSERVATION &BIODIVERSITY PROTECTION

TECHNOLOGICAL INNOVATION& PREMIUM SERVICESTECHNOLOGICAL INNOVATIONQUALITY-CENTRIC SERVICE &PRODUCT DESIGNCUSTOMER SERVICE ENHANCEMENT

PARTNERSHIPS & SOCIALRESPONSIBILITYRESPONSIBLE SUPPLY CHAININDUSTRY COLLABORATION &SHARED GROWTHSOCIAL WELFARE AND RURALREVITALIZATION

PEOPLE-CENTRIC COMMONDEVELOPMENT

REPORT APPENDICESEMPLOYEE DEVELOPMENT &CAREER GROWTHOCCUPATIONAL HEALTH & SAFETY

QUANTITATIVE PERFORMANCE

METRICS TABLE

REPORT INDEX TABLE

TABLE OFCONTENTS

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

About the Reporth?×??????ē?????ē?????ē???ē?×ò??×ê×ē??????ē×???????×??òa×ò?????ê?·ē?×·????ē??ɑ????×ò??ē??????????ē????a×ò?????ê?·ē?×·???ē??????ò?????????ē??ē?????ê?????

Reporting Period

January 1, 2024, to December 31, 2024. To enhance comparability aaJanuary 1, 2024, to December 31, 2024. To enhance compa-rability and forward-looking insights, certain sections may be appropriately extended to both preceding and subsequentyears.nd forward-looking insights, certain sections may be appropriately extended to both preceding and subsequent years.

Report Boundaryh???????ē?×?·ê????ē??????ò??ò?×ē?????×?×??×?????ê?êê??òē???????ò?×?×ê×ē×??×ò?·?ò??×·???·×?ê??ò??ò?×??ò??òē?êaspects. All case studies cited are sourced from the Company and its subsidiaries.

Report Standards

?????]?????????????×??$?????ń????;?????$;???;??×???ń?????C???????????;C????????????????????(???????????÷?????????;?????????÷??U???????ń?????]??ɡ?????????×??????ń???????????????????????(???????????]?????÷?????????;?????????÷??U???????ń?????]???????????×??????ń?????}??ń????????and the:$???????????????ń??issued by the Team on Climate-re-lated Financial Disclosures (TCFD).

Report Reliability AssuranceThe Company guarantees that the content of this report is true, accurate, and complete, without any false records, misleadingstatements, or material omissions.

Report Access

h?×??????ē×????×ê??ê?×ò?×?×ē?ê?????ē???????··???×ēē????????????·×?ê????×ē?ɑ?ēē??????????×ò??????·?????ē??a??ò???òaē?·??·??ò??????×ē?ɑ?ēē??????????????·ò??

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COMPANYPROFILE

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

CHAIRMAN'SSPEECH

Dear Colleagues, Partners, and Friends from All Walks of?×???In 2024, global energy transition and climate change chal-lenges coexisted, while geopolitical shifts and technological×òò???ē×?ò??··?ê???ē??ē????????×ò???×ò???ē??ê?ò?-scapes. Against this backdrop, Sinofuse Electric remains·???×ēē??ē?×ē??×?×?ò?????·??×ò??ò×òē????ē????ê?ē×?ò????×???????ò???????ē?·ē×?ò???ē?????????????×ò?ē???????????ē×?ò??????ò?ò????·?ò????×?ò????????sustainability principles into our corporate DNA through????ò??ò???·ē??×ò??×òò???ē×?ò???×??ò??????·?????ò?global responsibilities, forging new milestones amid chal-lenges.Since its establishment in 2007, Sinofuse Electric has jour-ò????ē???????????????????ê????òē?h????????ēē?×?path, the Company has consistently adhered to a long-term?×ò???ē??×ē???????ē??ē??×·??·×?×?òē×??ēê??ê×?ò???×ē?sustainability principles. On one hand, the Company???????ē?????ò??ò???·ē??×ò???×ò·×?ê????×ò×?×?×ò??ò?×-ronmental impact across all operations from product R&Dand production processes to packaging and logistics, withthe commitment to building a sustainable green supply·??×ò?Mòē???ē?????ò????????×?ē?òēê???????×òò???-ē×?ò?·?òē×ò????ê??ò??ò·×ò?]?·????×ê×ē×??ē???ê×????×??????ê×ē?????×·??ē??ē???ē???ê?×ò??????ē????ò???As of the end of 2024, Sinofuse Electric had expanded its?????????????ē×?ò?ē???????·??òē?×???ò????×?ò??'?×?????×ē??'???ò?/òò???ē×???]????ò?×?ê?????ē?×ò??×ê×ē???×ê????????a×ò?????ê?·ē?×·?··?ê???ē??×ē?????ò??ē?????becoming a global leader in the fuse industry through inde-??ò??òē×òò???ē×?ò?·?êê?????ē×??×ò???ē?×?ê·??×ò?????????

?ò?ē??·???????ò?×???ē??ē???????×ê?×ò?????ē?×ò??ê?ecosystem.

I. Innovation-Driven: Solidifying Technological Leadership/òò???ē×?ò????????ē????×??????×?×ò????·????·??????ē?????ê????òē???ò·???????ē??ē???×ò·???ē?·?ò?ê??×·?ê?????ē???????????×ê?×ò?????????×?ò?ê??×???ê???ê]?ē????????????ē??ê×??????êê?·??×òē?·?ò?ê??×·?ê·????×ê×-ties—spanning materials, structures, and smart systems—in??·ē???ê×??ò???ò???????×·ê???ò??ò?????ē??????M???the past year, we empowered sustainable infrastructureē?????????êē?·?ò?ê??×·?ê?????ē????????????????ē×·?êê?????ê????ò?·ê??????????×?????êē?????????·?×????world-class performance to secure critical energy autono-my, while next-generation EV fuses (deployed across 20+·??òē?×?????ēò??????ē???ò·??????????ê???ê?ê?·ē?×?·?-ē×?òē??ò?×ē×?ò??????ê???ê×???ē??ē?òê???·?òē×ò????ê?ê???×ò??ēē??ē?·?ò?ê??×·?ê???????òē·?ò??ē???×ò×ē×?ē×??in global competition and inject strong momentum into×ò???ē??????ê????òē?II. Green Manufacturing: Delivering on Our Dual-CarbonStrategy Commitment/òò???ē×?ò????????ē????×??????×?×ò????·????·??????ē?????ê????òē???ò·???????ē??ē???×ò·???ē?·?ò?ê??×·?ê?????ē???????????×ê?×ò?????????×?ò?ê??×???ê???ê]?ē????????????ē??ê×??????êê?·??×òē?·?ò?ê??×·?êcapabilities—spanning materials, structures, and smart???ē????×ò??·ē???ê×??ò???ò???????×·ê???ò??ò?????ē??-????M???ē?????ē???????????????????ē?×ò??ê?×ò????

?ē??·ē???ē?????????êē?·?ò?ê??×·?ê?????ē????????????????ē×·?êê?????ê????ò?·ê??????????×?????êē?????????·?×???????ê??·ê???????????ò·?ē???·???·?×ē×·?ê?ò????autonomy, while next-generation EV fuses (deployed across???·??òē?×?????ēò??????ē???ò·??????????ê???ê?ê?·ē?×?-·?ē×?òē??ò?×ē×?ò??????ê???ê×???ē??ē?òê???·?òē×ò????ê?ê???×ò??ēē??ē?·?ò?ê??×·?ê???????òē·?ò??ē???×ò×ē×?ē×??×òglobal competition and inject strong momentum into industry????ê????òē?

III. Mutual Prosperity: Building a Sustainable Supply ChainEcosystem

h??????ê?·??×ò×?ē???·????ò×ē????????????ē×ò??????òē????×???????????ē??ê×?????òa'??ò?????òē???ē??·????×ò??êê????ê×??????ê?×ò?????ò???ē?×ò/aM??????ò?/aM?????·??ē×?·?ē×?ò??h???????×?×ē?ê????ê?·??×ò??ò?????òē????ò?????ò?×??ò??òē?ê?ò???·×?êresponsibility compliance from the source. Meanwhile, the????ò??ē?×·ēê??ò???·???·?ò?×·ē?×ò???ê???ò?????òēmechanism, guaranteeing 100% supply chain traceabilityand fostering shared prosperity across the industrial chain.E??×ò????????????×êê·?òē×ò???????ò×ò??ê???ê·?êê???-ration with an open mindset, making sustainability thecommon language connecting all our partners.

IV. People-Centric: Cultivating a Caring Corporate Culture??ê????????ē?????ē??ê???ê?????ē????ò?òē????×???n???ê?×ò?ē????ê???????????·ē?ē???ē??ò×ē???ò???ē??ê??????ē??????????×êē?·?????????ê????òē???ē??????êêemployees, offering a dual-track promotion mechanism of???ò?????òē????·×?ê×??ē×?ò?????????ò?·?ò?????×ē?×ò

the Company.We prioritize employee health and safety, with 100% of?????·ē×?ò?????·??ē×?????/aM?????M··???ē×?ò?ê,??êē?and Safety Management System, supported by comprehen-?×?????êē?·????ò?????ē???·??ò×????????ê???ê×???that only by growing together with employees can we???ò???ē??·????ē??ò?ē??????ē?×ò??ê?????ê????òē?????×ò??????????×êê×ò·?????]?×ò???ē??òē×ò×òē?êê×-??òē???ē?·ē×?ò???×·???????ò·×ò?×òē????ē????ê?ē×?ò????Y~??ò?????ē???????ò?????ò??·?òē×ò??????ò·×ò?ē??×òē?êê×??òē??????????????????????·ē×?ò????????×ê???ê???ê????×·?ò?ē??????ò??????a'??×ò·×?ê??×òē?ē???òē×????ê??·??×ò???×?×ò??????????????????ē??????ò?and the industry.Dear colleagues and friends,a??ē?×ò??×ê×ē?×?ò?ē?·??×·??×ē×??ò×?????ē×???a×ò?????Electric will join hands with our global partners, harnessingē?????????×òò???ē×?ò?ò?·??????ē??????ò?×?×ê×ē?ē?????????ē???ē??ē×??ò?×??ò??òē?êê????ē?×ò??ê???????-tionally secure, and socially responsible!Thank you!

”

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

????ò?Y???ê?

Corporate Culture

007008

×??òa×ò?????ê?·ē?×·????ē??ɑaē?·??????????????????ò????ò??×ê????????h??????ò?×????×·?ē??ē?ē??]???????·ē×?ò??ò???ê????·×?·?×ē???ē?·ē×?ò???×·??????????ò???ê?ē???··?????×???/ē???×ò?????·ē?×ò·ê???????????????ê?·-tronic fuses, and excitation fuses, with power fuses being the leading product.

Leading positions inindustries such as new?ò???????×·ê?????ò????ê?energy power generation(wind and solar), energystorage, and rail transit

ABOUT SINOFUSEELECTRIC

???VALID PATENTS

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EMPLOYEES

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PRESENCE IN20+ COUNTRIESAND REGIONS

MARKET POSITION

?·??×ò??ò×òē????ē????ê?ē×?ò????×???????ò???????ē?·ē×?ò???-ē?????????????×ò?ē???????????ē×?ò??????ò?ò????·?ò????×?ò?

Vision

]??ē??×ò???????×?ò?ê????]??ò???ò???·ē??×ò????·???ē???ê??????ê?êê×ò?·??ē????ò??????×?×ò???·?ē???·×?ē?????ê???????ò????????ê??????ò??·?×??×ò???ē??ê????ē??????ē?ē??????ò?and employees!

Mission

1.NPAC (Next-Process-as-Customer) Principle under Customer-Cen-

tric Approach;

2.Respect, Trust, Unity, Mutual Support

3./òò???ē×?ò?Y×?ò???×ò??Y???????

4.Integrity, Passion

5.Sense of Mission, Responsibility, Honor, Urgency

Values

Global Presence

ShanghaiSuzhouShenzhenHong KongThailand, Rayong??ē?????瀲d???????A??ù???????GlobalA??ù???????

Branchd?ó??

SubsidiariesSub-

subsidiaries

RegionalRepresentatived?ó??

Subsidiaries inEstablishment

??灓??澴ě???瀲A??ù???????澵R & D, Manufacturing

Seoul, South Korea

Detroit, USA

Reutlingen, Germany

Japan, Tokyo

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

009010

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Product Models & Partnerships

New Energy Electric Vehicle Industry

Battery packs, DC charging piles, MSD?×?????êē????×?ē?×??ē×?ò???????ē·?Rail transit industry

ESG Rating

,×?????êē????×?ē?×??ē×?ò????????ē??·ē×?òê?·???-ē×????ê?·???ē×???ò?En·????×ò??ò×ē????ē????·ē×????ò×ē?ē?×?????×ê·?êê?·ē?????ē????ē·?Communications Industry

nYa??????????ê×???ê?????êē????×?ē?×??ē×?ò·??×ò?ē??ê?????êē?????×ē·???????????·??×ò?ē??and other industrial power distribution equipmentprotection facilities.Wind-Solar Power Generation and

Energy Storage Industry

/ò???ē????·???×ò????·?ò???ē??????×ē·???????ē·?

Passive Index

Social Awards

AgencyRatingQuantDataAWindBB·????×???ò??????CCXIBB

Index CodeName

Awards / HonorsCertifying Authority

931994.CSICSI Grid Equipment Theme Index

China Electrotechnical SocietyScience and Technology Award

China Electrotechnical Society

High-Tech Enterprise

a???ò?×Y???×ò·×?ê????ē??òē??Science and Technologya???ò?×Y???×ò·×?ê'???êê?òē????×??

a???ò?×Y???×ò·×?ê????ē??òē??Science and Technologya??ò?×Y???×ò·×?êE?ò???·ē??×ò?

Champion Enterprise

a???ò?×Y???×ò·×?ê????ē??òē??/ò???ē??and Information Technology?a??·×?ê×????a???×?ē×·?ē???×?????òē×?ê

?ò?/òò???ē×???aE?Ministry of Industry and Information TechnologyM?ē?ē?ò?×ò????ò·??E?ò???·ē??×ò?òē????×??

??×ò×?ē??ē×?????×ēē????×??ò,×???h?·?/ò???ē?×?????ê????òē?ò?

931591.CSIa/????'???ē??/òò???ē×?ò/ò???866501.WIWind Energy Theme Index931468.CSIa/×?×??ò?\??ê×ē?/ò???866503.WI866400.WI

Wind Smart Grid Theme IndexWind Strategic Emerging Industries Index

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

ES Ggovernance System

Sustainable Development (ESG)

1.M???????êê·????ò?a'×ò×ē×?ē×???

2.?????????ē?×ò??×ê×ē??????ē

3.Propose sustainability strategies and target resolutions

4.]??×????·????ò??ē×?ò?????ē??a??ē?×ò??ê????ê????òē???×ēē??

??????×ò?a'?×??????????ò·?×????????òē??×??×??òē×?·?ē×?ò???????????ò?policies

5.ò·???????ò???????ēē??a??ē?×ò??ê????ê????òē???×ēē??×ò·?êê?????ē-

ing with other standing committees

1.Exercise ESG-related duties on behalf of the Board of Directors

2.M???ò×?????·×?ê×???·???×ēē???ē?????ê??????·?ē?????×????ò?·?òē×ò????ê?

×??????a'???ê?ē??????·ē×????ò??ê?ò?

3.?ê×????ē??ò·?×ē×·?êa'??ēē??????ò×ē?????·?ē×?ò??ò????ê??ē?????????

against targets

4.]??×??ē?????ē?×ò??×ê×ē??????ē?ò?????×???×?·ê???????·????ò??ē×?ò?

5.E?ò×ē???ò???????·ê×??ē??×??ē??ò???ò???ê?ē??????ê????òē?

6.??????ē??·ê×??ē?·??ò???×?????×?ē???ò?·????×ò?ē?ē??????ê????òē??

corresponding mitigation measures

1.%????ê?ē?a'??ê×·×???ò?????·ē×?????ò??êê?·?ē?·???????ò?×ò???????·???

2.Deliberate on material ESG matters

3.Assist internally in compiling the sustainability report

4.E?ò×ē???ò????ê??ē?ē??×??ê???òē?ē×?ò????????????ē??ê×??????ê×·×???ò?

????·ē×???

5.????a'??ò?????òē×ò×ē×?ē×????ò?????ê????ê???òē?????ò?ò·??ē??·ē???

1.??·?ē?a'?????ê?ò??×ē?×ò?????·ē×??????×ò??ò??????ē????????ē?ē??

ESG Team

2.E?×òē?×ò???ē×ò??ò??????òē?×ē???ê???òē?ē?????ê?????×ē?×ò?????·ē×??????-

ational domains

3.?×????????×ò?ē?×??ê???òē?ē×?ò??a'ē?????ò????ē×ò???ò?????òē

4.?ò??·ē???×??×·???×?????a'????????ò·????×ò?ē??ē??ê×????????·ē×???

?ò?????×??×????????òē??·????ò??ē×?ò?

ESG Governance Structure of Sinofuse Electric

Board of Directors

Sustainable???ê????òē

Committee

ESG Team

FunctionalDepartments

ESGStructure

ESGResponsibilities

'?ò???êE?ò??????M??·?

a??ē?×ò??ê????ê????òē???×ēē??

??ê???×ò??òē????×??×ò?ò???????ē?·ē×?ò???ē??ē?·?ò?ê??????ē??ò???ò????×ò???ē???a×ò?????ê?·ē?×·?·ē×??ê???????ē?the ]?????????÷?????????×??$?????ń?????×òē????ē×ò??ò?×??ò??òē?ê???·×?ê??ò??????ò?ò·?ɑa'?·?ò·??ē?×òē??êê????·ē???×ē??????ē×?ò?ē??ò????????·ē×??×??ê???òē?ē×?ò?????ē?×ò??×ê×ē????·ē×·???In 2024, the Company continued to deepen the integration of ESG principles into its operations. On one hand, it further×???????ē????êē×?ê???êa'?????ò?ò·??ē??·ē???????ē??ê×??×ò??a??ē?×ò??ê????ê????òē???×ēē???ò???ē??'?ò???êE?ò??????M??·??·??×?????????ē?'?ò???êE?ò?????h?×?·???×ēē?????×?ē?ē????????×??·ē???×ò??????·?×ò??ò?????×?×ò???·????ò??ē×?ò??òê?ò??ē???????ê????òē?ē??ē??×????????×ò???ē??òē??·×?×?ò???ò?a'??ê×·×?????ò×ē???a'ē??ò????ê???òēē?ē?????×ò????ò?????????????·×?ē???×????ò??????ē?ò×ē×????ò?????????ē??×??ê???òē?ē×?ò??a'?ē?ò-dards and progress toward targets. On the other hand, the Company strengthened sustainability management practices inareas such as carbon neutrality, human rights optimization, and supply chain compliance.

Finance Department, Human Resources Department, General Adminis-ē??ē×?òM??·??/ò?????ē×?òh?·?ò?ê???????ē??òē?]?,???????ē????

Testing and Inspection Center, Strategic Promotion Department,aē??ē??×·E????ē×ò?????ē??òē?????ē×·a?ê???òē???M???????Market Department, Engineering and Manufacturing Headquarters,Y??·?????òē????ē??òē?\??ê×ē?????ē??òē????ò·??E?ò???·ē??-

ing Center, Thailand Factory

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.Materiality Assessment ProcessCommunications with Stakeholders

013014

Dual materiality analysis is the core of preparing annual sustainability reports, formulating long-term sustainability strategic????·ē×?????ò??ē??·ē??×ò??ē?????ê????ò??????òē??·??ò×?????a×ò?????ê?·ē?×·?a×ò?????ê?·ē?×·???????òē??ē???×??ò-?×?ò????ò?ò·×?ê??ē??×?ê×ē??ò?×???·ē??ē??×?ê×ē???????ē??ê×?????òa'×????·??·?ê×?ē????????ò·×ò?ē????÷?????????;?????????]??ɡ?÷??U???????ń??????????????????(???????????????×??????ń???:??????C?ń???????????? and ??÷?????????;?????????]???÷??U???????ń??????????????????(??????? ?}??ń????????÷???????×??????ń?? issued by the Shenzhen Stock?·??ò???ē??nò×ē??G?ē×?ò?a??ē?×ò??ê????ê????òē'??ê?ɑa'???ē??']/aē?ò??????????/aM??????aa??ê???òē×???????ò??ē??????ē?×ò??×ê×ē????ê?ē???ē?ò??????????êê??a'??ē×ò?????×·????·???Ea/?Y?a/?×ò???ē·?h??????ò????×??òē×????ò?·?ò??ê×??ē????ē??ò×?????ê?ò?×ò???ē??????·×?·a'×????????ê×·??ê?ē?×ē??????ē×?ò?????????ò·×ò???·????ê×·×???ò???·ē??????·×?·????ê?ē×?ò?×ò×ē??????ē×?ò?ê???×??×·ē×?ò??????êê????ē??×?ê×ē?×??????ê?·ē×?ò??ē????ê??×???ò?prioritization results from industry peers.

h???ē?????ê??????a×ò?????ê?·ē?×·×ò??·×?ê?????ò?×?×ê×ē?×ò·ê??????????ê?????×ò???ē????·??ē??????????ê×???????ê???????????ò??òē?????ê?ē??????ò·×???·????ò×ē×????ò????×??

Establishment of ESG Issue List:

???ē??ê×???ò×ò??òē???????a'×??????×ē???????ò·?ē?×òē??ò?ē×?ò?ê?ò??????ē×·???ē?×ò??×ê×ē??ē?ò??????×ò·ê??×ò??

Materiality Assessment and Validation:

%??×???·ē??ē??×?ê×ē??a×ò?????ê?·ē?×·???ê×??ē??%Eɑ%?×ê???E????ò????·ē?ò?ê??×??????ê????òē×??×ò?×???·ē?×?ò×?-·?ò·??????·?ê???·????×??????×??×ê×ē???ò?ê×??ê×?????×??ò?×?ò???ò?·?ê·?ê?ē??]×??Y?×??×ē?G??????ɑ]YG??×???êē×?ê×·?ē×?ò?%???ò?ò·×?ê??ē??×?ê×ē????ê??ē×?ò???????×ò·??????ē??????ē?ē???????×???ē?????ò?ê?ò??ē???ē??????ê?×??ò?×?ò???×??ē-???·??×ò???????ê×??ē??ò?ò·×?ê×???·ē??·????ē×?????×??ò????ò???ē×ò??·?????×ē??ò?ò·×?ê??ē??×?ê×ē??·????

Issue Reporting:

a×ò?????ê?·ē?×··?ò?ē??·ē????ē??×?ê×ē??ò?ê??×???ē?×???????ò×???????ê??ē×?ò????êē?ē???×??×ē×??×?????×?ò×?·?ò·??h??report focuses on highly material issues.h??????ò???ē?ē??????ê???ò???×??×ē×???×?????ē?·?ò·?òē??ē???????·???ò·?×ē×·?êa'×??????????·ē×??ê???×?×ò????ē?×ò??×ê×ē??

Shareholders?/ò???ē???

General Meeting of

ShareholdersBoard of Directors MeetingEarnings Presentation/ò???ē??Y??ò??ò????ò·??/ò???ē??]?ê?ē×?ò?·ē×?×ē×??

/òò???ē×?ò???×??òY????·ē?ò?a???×·?Safety and Quality??????ē?'????ò?ò·?Information disclosure

and transparencyAnti-commercial bribery

and anti-corruption

a??ē?×ò??]?/ò???ē??òēEnhanced Product Quality

]????ē'????ò?ò·?

structureStandardized Periodic

DisclosuresAnti-Corruption Training

Implementation

Customers

Conference calls

EmailsMò??×ē??×?×ē?Customer seminars

Product training

Climate Resilience StrategyY????·ē?ò?a???×·?a???ē?

and QualityData Security andY?×??·?Y??ē?·ē×?ò/òò???ē×?ò???×??òStakeholder Engagement

Clear EmissionReduction TargetsRigorous QualityControl ProcessEncryption Technology

Applicationa??ē?×ò??]?/ò???ē??òēTransparent Communication

Mechanism

Suppliers

EmailsConference calls

Mò??×ē??×?×ē?Supplier conferences

Instant messages??×ò???]??×??E??ē×ò??

Climate Resilience Strategy

Energy UtilizationSupply Chain Security

Data Security and

Y?×??·?Y??ē?·ē×?òUse of eco-friendly materials

Green Energy Transition

ò??????·×?ò·?/????????òēYê?ò

Supply ChainResilience BuildingData Encryption ProtectionEco-material Procurement

Employee

Employee ConferencesDepartmental Internal MeetingPerformance Feedback Meeting??ê??????ē×???·ē×?ò??????

Employment and Workforce

MobilityEmployee Training?ò????ê????òē????ò??ē×?ò?ò??ò??ē?Occupational Health & Safety

??ê????h??ò????

Analysis???ê??a??ē???ē×·

Training Plansò??ò·??ê?????ò??ē?M?ē×?×?????ò?×??ò??òē

and Facilities'????ò??òē

?Regulators

???a???ē?a?????×?×?ò

MeetingsIndustry Policy Seminars

Industry-relatedExchange ForumsSpecial Policy Dialogues

Climate Resilience Strategy

/òò???ē×?ò???×??òAnti-commercial bribery and

anti-corruptionò?×??ò??òē?ê???ê×?ò·?

Management

Carbon Footprint Reduction

Sustained R&D

×ò???ē??òēEradication ofCommercial Briberyaē?×ò??òēò?×??ò??òē?êa?????×?×?òCommunities&Media

Social Media UpdateCommunity Engagement]?ê??????ò?×??ò??òē?ê

ReportsOnline Forum InteractionEmail CommunicationsMulti-stakeholder Dialogue

Climate Resilience StrategyUse of eco-friendly materials

Waste DisposalPollutant EmissionsWater Resource Utilization·????ē???ò?×??×????×ē?

?ò?????ē×?ò

Carbon Footprint Reduction

Adopting Renewable

MaterialsImplementingRecycling ProgramsReducing Emissions/?????×ò??ē????·×?ò·?

Y??ē?·ē×ò?×??×????×ē?

Stakeholder

Segments

Channels

MaterialConcerns

Response

ò?×??ò??òē?ê

Issues

Social issues

a??ē?×ò??ê?????ê????òē

?????ò?ò·?×?????

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.Materiality Assessment Findings

015016

1 - Core Issues

2 - FinanciallyMateriality Issues

3 - Impact MaterialIssues

4 - General Issues

1/òò???ē×?ò???×??òSociety

'????ò?ò·????a??ē?×ò??ê????ê????òē

Societyò?×??ò??òēSocietyò?×??ò??òē

ò?×??ò??òēò?×??ò??òēò?×??ò??òē'????ò?ò·????a??ē?×ò??ê?

???ê????òēò?×??ò??òēò?×??ò??òē

Societyò?×??ò??òēò?×??ò??òēò?×??ò??òēò?×??ò??òē

ò?×??ò??òē

'????ò?ò·????a??ē?×ò??ê????ê????òē

Society

Society'????ò?ò·????a??ē?×ò??ê????ê????òē

'????ò?ò·????a??ē?×ò??ê?

???ê????òē

Society

Society

??????ē?'????ò?ò·?Supply Chain SecurityResponse to climate changeData Security and Customer

Y?×??·?Y??ē?·ē×?òò?×??ò??òē?ê???ê×?ò·?

ManagementIntellectual property protectionSociety

SocietyEmployeeWaste DisposalPollutant EmissionsGreen products and designStakeholder communicationCircular EconomyWater Resource UtilizationEqual Treatment of Smes

Hazardous substance

managementUse of eco-friendly materialsClean technology opportunities

·????ē???ò?×??×????×ē?

?ò?????ē×?òAnti-Commercial Bribery andAnti-CorruptionIndustry Collaboration &

Shared GrowthTechnology ethicsAnti-unfair competition]???ê]??×ē?ê×??ē×?òSocial Contribution???×ê×??ò·?×ò???ē×??ē×?òNoise monitoring

Material Issues ListNo.IssuesField

/ò?????a×ò?????ê?·ē?×··?òē×ò???×??òē×??×ò????ē?×ò??×ê×ē?×??????ò???????×ò???·???ò×ò?ē??×???ē??×?ê×ē??h????ò?????òē?ò????·ē×·?????????ò·???ē????×??òē×???×?????????×?·ê?????ò??????ò????··???×ò?ê?×òē???????ē?h??????ò????????·???????×ò·ê???×òò???ē×?ò???×??ò????ē??·??????ē??????ò?ò·??????ê?·??×ò??·??×ē??·ê×??ē?·??ò???×ē×??ē×?ò?????ē?-ē×?ò???ē???·??×ē??·??ē??????×??·????ē?·ē×?ò??ò??ò?×??ò??òē?ê·???ê×?ò·???ò?????òē?

12345678910

???岡∠?慌夀?

Materiality Issue Matrix

Financial Materiality

Highly Material

Not MaterialHighly Material

ò?×??ò??òē???ê?ē??Society-related

'????ò?ò·???????ē?×ò??ê?????ê????òē

Impact Materiality

ê×?ò×ò??×ē?a??ē?×ò??ê????ê????òē'??ê?

Corporate Governance& Stable Management

a??ò?·??????ē??????ò?ò·?×??????????òē×????ē?ò·?ē?Sinofuse Electric. We continuously standardize operationalprocesses, clarify the responsibilities and authorities of each?????ē??òē??ò??ò·???·×?×?ò????×ò????·×?ò·???ē×??ê?ē????ê????·???ē×?×ē???ò??ò?????ē???????×ò???????ê????òē?Externally, the Company maintains information transparency,?ò??ò·??×ò???ē??·?ò???ò·???ò??ê???ē????ò?????ē?ē×?ò?/ò?????ē??????ò???ē??ê×??????×????×?????????ē??·ē???ē??ò?????·×?òē×?·??·×?×?ò????×ò???×ê??ē??ò?ē??ò×ò??????×??ē??·??ò×????×ē???êê?·?·ê????×ē·?òē??ê?????ò?ò·×?ê?ò?process compliance. Furthermore, the Company aligns with coreESG principles by enhancing information disclosure, regularlysharing key updates with shareholders and the public to????ò?ē??ē??????ò?ò·?????·ē×??ò????ò???×?????ē?×ò??ê?progress.

In 2024, all directors of the Company diligently performed theirduties, with a total of ?????????ē×ò???ò????????×????????????ē×ò????ê???·?×??×ò?????? attendance rate at boardmeetings.In 2024, independent directors accounted for ????? of the StrategicCommittee, ????? of the Audit Committee, and ????? of theNomination Committee and Remuneration & Appraisal Committee.

/ò?????ē??·?????????ē????òē×?·?????ē×?òē??×ò×ò????ò?employees reached ????, and the signing rate of the Integri-ty Agreement by employees was also ????.

/ò?????ē??????ò??·?×?????ò???????×ò??·??ò???×?·ê?????ratings.

??????ē?'????ò?ò·?aē??·ē???Business Ethics & Anti-CorruptionCompliance Management & Risk Mitigation?ē?a?·??×ē??Y?×??·?Y??ē?·ē×?ò

????=??Y???????ò·?

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

Corporate Governance Structure

019020

The Board of Directors of Sinofuse Electric demonstrates ongoing commitment to safeguarding the legitimate rights of the Com-??ò??ò??êê???????ê?????????·ē×??ê???ê?êê×ò???ò?????òē?????ò?×?×ê×ē×????ò?·?òē×ò????ê??ò??ò·×ò??????ò?ò·?·????×ê×-ē×???/ē?ē??ò?ē??ò??????×ò????ò??ò·??ò??×????×ē???·ē×??ê??ò??????×ē?×ò???ē???????ē×·×??ē??×ò×ò???ē????ê?ē×?ò???ò-agement, and standardizes information disclosure practices.

The ?????÷}????????÷??????[????????????ò??ē??ê×????ē?????×???ē?ò????×??????ē?·?ê???????ē×ò?·?ò??ò×ò????ē×ò????·????????ò????????ê??ê×????ē×?ò?ē??ò??????êê?·???ê×?òē?ò??????ē×?ò?êê????·×?òē??????????ò?ò·??/ò??????êê?×??·ē?????ê?êê??ē??×???ē×???×ê×??òēê????ê?×ò??????????ē×ò???×ē??????ēē?ò??ò·??/ò?????ē????????×??·ē??????×????????×????a'???ê?ē?????????ê??×ò·ê??×ò?ē??????òò??ê]????ē???????????Directors Work Report, 2023 Internal Control Self-Assessment Report, Proposal on Establishing the Independent Directors Spe-cial Meeting System, Proposal on Adjusting the Members of the Third Board of Directors Special Committees, and Proposal on]??×?×ò?ē??????ò???]?ê???òē'????ò?ò·?a??ē????h????×ò×ē×?ē×???????·???????ò?×??ê??ê???ē??ē??????ò???a'??ò?????òēē??ò??ê???ê?

As of the end of 2024, the Company has 9 directors, including 3 independent directors,2 female directors, and 7 directors with industry experience. The Board shall include atleast one independent director with accounting expertise and one with industry-specif-×·?????×?ò·?ē??ò????????·ē×???????ò?ò·???·??????ē???ēē????The Company's independent directors comprise seasoned professionals with special-×????????ē×??×ò?··??òē×ò??ê???ê????×????ò?×ò???ē??????·×?·ē?·?ò×·?ê????×ò???·??×??·ē????ē×????ē??×ò????ò??ò·?·?×ē??×???ò??ē????ē???????????????[???????÷??C???ń??????$?????????÷U???????ń?????and the ??÷?????????;?????????÷?????????????(???????U???????ń?????]??ɡ????????cń????????÷??[???????U???????ń?????,×ò·ê??×ò?????ò·??????·?ē×????ò?ò????·?ē×????ê??????ò?ē??×?×ò????ò??òē?×??·-torship within the organization; no material relationships with the Company or its con-ē??êê×ò????????ê???ē??ē·??ê?×???×?????·ē×????????òē?????êê??·??ē×?·?ē×?ò??ò??ò?×?·ê????????ê???òē?????ò??ē???·?×???????ē??????ò??×ē?·?òē??êê×ò??????-??ê?????????ê×?ē???òē×ē×???h???????????????×ò????ò??ò·??×ò????ò??òē?×??·ē???shall constitute at least 66.7% of Remuneration and Appraisal Committee, Audit Com-mittee, and Nomination Committee.

Strictly adhering to laws and regulations such as the Company Law of the People's Republic of China, Securities Law of the Peo-?ê???]????ê×·???×ò????????ē?'????ò?ò·????????×?ē??????ò×??×ò?×ò???ò?ē??a??ò???òaē?·??·??ò???×?ē×ò?]?ê???a×ò?????ê?·ē?×··?òē×ò????ê????ê???????ē???·ē×·??×ò?????ò·??????ē??????ò?ò·??×òē????ē×ò??ò?×??ò??òē?ê???·×?ê??ò??????ò?ò·?ɑa'???×ò·×?ê??×òē??êê????·ē????????ò?ò·?ē???×?????ē?×ò??ê???ê??·???ē×?ò?The Board of Directors has established four specialized committees (Strategy, Remuneration & Appraisal, Nomination, and Audit???×ēē??????êê?????ē×ò?×ò?ē?×·ē·???ê×?ò·??×ē?·??????ē??????ò?ò·???·???òē?×ò·ê??×ò?????????????÷?????????????????????????????????????÷???????????????????ńń???????????????????????????÷???????]??????????????????????????????÷?????????????????????????????????????÷??C???ń??????$????????????ń?????[???????????÷??C???ń??????$????????,thereby ensuring robust shareholder rights protection and standardized corporate operations.

The members of the Board of Directors are elected by the shareholders' meeting, with each board term lasting three years.Sinofuse has stipulated the nomination methods and procedures for directors in documents such as the ???????÷??????????. To?ò??????×??ê???ê??ē??ò?????ò·?×ò·??????ē??????ò?ò·??ē??????ò?????ê??ê??×?·ê????×ò?????ē×?ò????ē?×??·ē????external positions. For details, please refer to the Company's ??????????ń???

Governance Structure

Diligent Duty Performance & Implementation

Advancing Diversity andIndependence

General Meeting of

ShareholdersBoard of Directors

Meetinga?????×???????×ēē??

Meeting

2022Indicators (times)20232024

66.7%

Audit CommitteeIndependent Director

Independent Directors of theNomination Committee andRemuneration & AppraisalCommittee

66.7%

??乩?????

General Meeting of Shareholdersa?????×????Committee

Board of DirectorsGeneral Manager

Specialized Committee

Internal AuditDepartment

StrategyCommitteeNominationCommittee

Audit Committee

Remunerationand AppraisalCommittee'?ò???êE?ò??????M??·?

a??ē?×ò??ê????ê????òē

Committee

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

??×ò???ē?×·??òē×??????ē×?ò

AExchange disclosureratings of the Company021022

h??????ò???]???ò???ē×?ò?ò?????×??ê???×ēē??×??????ò?×?ê?????????ê?ē×ò??ò????×??×ò?ē??·????ò??ē×?ò??ê×·×???ò??·?????????×??·ē????ò???ò×????ò?????òē???????òē??·??????ē?????·ē×????ò?ē????ē???ē??ē????????×??·-ē????×ò???ē????ò·?????×ò???ē??ò·????ò??ē×?òê???ê??????êê??ē?????·×?·?????ò?×?×ê×ē×???ò?ē×??·???×ē??òē???×ò?×-?×???ê?×??·ē????ò????·?ē×????h?????×ēē???ê??????×?????·????ò??ē×?ò???????×ò?ē??×?????????ò·????ê??ē×?ò·?×ē??×??h?????×ēē??????????ē??×??ê???òē?ē×?ò??ē??·????ò??ē×?ò???ē???ò??ò?????ē??ēò??×??·ē????ē??×????ê×?ē?????ē×·×-??ē?×ò??ē???×ò×ò?ē??×???ò????ò???ē×?ò?h??·????ò??ē×?ò?·??????????ò×????ò?????òē???????×??????ò?×ò????ò??òē?×??·ē??????×??ê???òē???òê???ē????ē?×ò×ò????????êē???????????·ē×???????ò?ò·????×???ē????????×??·ē????a????-?×???????×ēē????ò?a??????ê?????E??ē×ò??a×ò?????ê?·ē?×·??×òē?×ò??ò???·?ē×??·????ò??ē×?ò?ē??·ē???×òē????ē×ò?ê?ò???ò?????ē?ē???×ò·?òē×????·????×?×ò???????ê????????????ò·??????êê???ò·?????ò??ē???òò??ê??ò??????ò????×ē?×ò·?òē×????h????????ê???????×?????ò????òē?êsupport for standard position operations and team maintenance, performance pay is linked to strategic KPIs, including corpo-??ē????ê?ēē?×ò??òē??????ē×?ò?ê????êē???????·ē×òò???ē×?ò??????ē????ò?×?ò????·×?ò·?×????????òē???ò?ē?ê?òē????ê??-??òē???????ē?ē????ê×?ò??òē??ò????×ē?×ò·?òē×??????ē?????ē?×ò??ê?????ē?ē??????????????ò????×??

In 2024, the Company successfully completed the preparation of the 2023 annual report, 2024 Q1 report, interim report, and Q3report, issuing 82 temporary announcements with zero disclosure errors. Additionally, the Company responded to 83 exchange??×òē???·ē×??\???×ē???????????ò????ē?????ē×·×??ē??×ò?òê×ò?????×ò???????????ē??ē??????ē×ò????ò?·?ò??·ē????×ò???ē?????ē×ò??ɑ??ē??×?ē??ê?ò??ò??×ē??h??????ò??·ē×??ê?ê×?ē?ò?ē??×ò??×ē????????ê???????×ò×?ò??ò???????ē×?ò?????????×ò?×ò???ē??·?ò·??ò???×ê?????·ē×??ê?·????ò×·?ē×ò?·??????ē?????ê????òē??h?×?????ò??ò·??·??×ē?ê?????ēunderstanding and recognition of the Company. Through these measures, the Company has established standardized, direct,?ò????·×?òē·????ò×·?ē×?ò·??òò?ê??×ē?×ò???ē????h?×????×???????·??????ē??????ò?ò·??ē?ò????????ēē?????ē?·ē??×ò???ē???×??ē?ɑ???ē×·?ê??ê?????×ò??×ē????????ê???????ò????ē???????×ē×??×òē???·ē×?ò??ē???òē??????ò??ò?×ē?×ò???ē????

Standardized Remuneration ManagementIntegrated with Sustainability Principles

h??????ò??ē?×·ēê????????ē?ē??????ē?×?ē?×??ē×?ò??ê×·×???ò????×?????·??????×ò?··????ò·??×ē?ē??]???;????????÷??????ń????????÷U???????ń?????????$???????$?????×??????÷U???????ń????????????? by the China Securities Regulatory Com-mission and the ???????÷??????????????ē??×ò?ē??ò?????òē?×?×??ò??ē?ò????????ē×???ò??????ē??·×?×?ò????×ò???·??ò×??????×ò?ē???????ê?ē×?ò?ò????????ê??ē???×?ē?×??ē×?ò?ê?ò?ē??×ò????ò??òē?×??·ē?????ê?êê??ē??×???ē×???×ē?????×ê×??ò·??ò??ê?????ò???????×?ē??????×??ē??ê??h?????·????·ē×??ê?×ò·??????ē????????·??ò?·?ò·??ò??????×ò??×ē????????ê?????]?ê???òē???????ê????????×?????ò?????????????ē?ē????????×??·ē????ò?ē??a?????×???????×ēē??????????×ò?????×ēē??ē?ē?????????ê????????ē×ò??????ê×????ē×?ò?/ò????ò??òē?×??·ē???????×????????ê??×ò×?ò???ò????ò???????ê?ē???ê?ò???×??ê???òē???×ē?×òē???ē×??ê?ē??ē×????????????·ē×??ê??????????×ò?ē??×òē????ē????êê???????ê?????MòE??????????ē??????ò???????òò??ê'?ò???êE??ē×ò?????????ē??}??ń?????? ????}????$?????×?????}??????????C?????????$?????????????h??????ò??×?ē?×??ē??·????×?×??ò????]E???????????????ɑē??×ò·ê??×?????????ò×ē?ē?ē?ê?????·??×ē?ê???????????????????????òē×ò?ē??ò???????ē?·????×?×??ò??????ē??]E?ǎ??????????????×·????·??-?ê?ē???ò;?ê?????????/òē????·?ò???ê????????ē??????ò??×?ē?×??ē??·????×?×??ò????]E?????ǎ?????????????ɑē??×ò·ê??×?????????ò?ò?????ē???????·??×ē?ê??????????????????ɑ??ē??????·ē×ò?????????????·?????????????ē?ē?ê×ò?]E6,627,758.17, with the payment completed on September 27, 2024.Mò;?ò????????????ē??????ò?·?ò??ò??×ē????ē?ē?????×ò???'?ò???êE??ē×ò?????????????ē??Y??ń???????????????????ń?????;?????????$????????????????????×ò·ê??×ò????×?×?ò?ē?ē??]?ê?ē??Y??ē?h??ò??·ē×?ò?E?ò?????òēa??ē???h??????ò??ē?×·ēê?·???ê×???×ē????ê×·??ê?ê????ò?????ê?ē×?ò??·?ò??·ē×ò?·???????ò?×?????·??????×????????ē??×?ê??ē-ē???×ò·ê??×ò???ê?ē??????ē?ē??ò??·ē×?ò????ē??ò?ê?????òē?????ò???ē???ò?×ò???ē??òē??

Protection of Investor Rights and Avoidance of?ò?×·ē???/òē????ē

Sinofuse Electric strictly complies with China's anti-corruption laws, the ?????]?????????????????????????ń?????]?,upholding integrity commitments for both the Company and its business partners while continuously strengthening ethicalcorporate culture. The Company maintains a zero-tolerance policy against corruption, bribery, fraud, and money laundering,applicable to all personnel (including contract and temporary staff) across all jurisdictions. This prohibition extends to suppliers,·?òē??·ē?????ò?????×·?????×???????????·?òē??·ē??êê???ê×??ē??ē???????ē?ē?????òē×?·?????ē×?ò?ē?ò????????×ò??????-ē×·?ò?×òē??ò?ē×?ò?ê???×ò????????ē×?ò??ò?×ò???ē??òē?·ē×?×ē×???

a×ò?????ê?·ē?×·?×????òē×?·?????ē×?òē??×ò×ò???·?×ē×·?êē???×?×ò????ê?????????ò???????ê×·×???ò????·ē×·??????ē??×ò???????ò·?ē????×ò????ē?×·???ò??????òē×ò?·?????ē×?ò??·??ò×????òē×?·?????ē×?òē??×ò×ò????·?×ē×·?ê×ò×ē×?ē×??ē???×ò???·?employee awareness of corporate anti-corruption policies and ethical business practices, empowering personnel to maintain×òē???×ē?ē????????ēē??×????????×?ò?ê·????????????òē×ò?????·??????òē×?·?????ē×?ò???ê×ò???/ò?????ē??????ò???anti-corruption training program was primarily organized and managed by the Human Resources Department, including training??ê×??????·????ê×ò???ò???·????????×ò??h????ê?ē??·???????????×???×ê?·?ē????×???×òē?ê???ê×òē?????ē?ē×?ò·????????ò?·??????·????×ò?????ò???ê×·×???ò????????×?ò?ê?ē?×·??

òē×??????ē×?òh??×ò×ò??????ê?????

a×ò?????ê?·ē?×·?ē?×·ēê?·???ê×???×ē??×?·ê?????????ê?ē×?ò??ò???ê?êê?×ò?????ē×?ò?×?·ê???????ê×??ē×?ò?ē????ē?·ē×ò???ē????ò??ē?????ê????????ē×·?ê??ê??×ò??×ē??????-holders' rights. During this reporting period, while maintaining high-quality compliance?×ē???ò??ē????×?·ê???????ê×??ē×?ò??ē??????ò??×?ò×?·?òēê?????ò?????ê?òē????????ē×ò??ò×ò???ē????ò?·??×ē?ê?????ē???×??×ē???????×ò·ê??×ò?·??????ē??ē??ē?????????ò?ò·??ē??·ē?????????ò?????ē×?ò?????ê??????ê??????ò?????ê?·??×ò?ē?????-ship.

Disclosure and Investor Engagement

100%

Anti-corruption training·?????????????ê?????

Valid Reports

Employees transferred to

judicial authorities

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100%EmployeeC???????????????? signing rate

In June 2024, the Company organized an anti-corruption training program for all employees. The trainingprogram focuses on legal compliance education with in-depth analysis of the S?ń???????U???÷???}??ń?????ń?×?????÷??????????U???÷???}??ń?????ń?×????÷???????????????????????????÷??}?×???c??????, clarifying legal con-?????ò·?????×?ê?ē×?ò???×ê??ò??ò·×ò?×òē???×ē??????ò???ē??????·????ē??×???

h??????ò?·?ò?×?ē?òēê?????·?ē???????×?·????ē×ē×?ò??ê?·×ò??×????×??×ē??ò?òē×??ò??×?·????ē×ē×?ò?ò??òē×???ò???ê?compliance through regular legal training for senior management teams./ò?????ē??????ò??????ē??ò?ê???ê???·???×ò????ê?ē??ē??ò??×?·????ē×ē×?ò??òē×ē???ē?×?ê?ē×?ò????·????×ò??ê?×ò??????or corruption.

h??????ò?????·ê?????×?ēê??ê???????ē?·ē×?ò??ò?????òē???ē?????ê??????ē?êêê???ê??ò???ē??ò?ê???ē×???×ē??×??·ē??×ò?×??·ē?·?ò??×·ē×??ē?ē??????ò?????????ē·?ò·??ò???????×ò??×?ê?ē×?ò??????????×?ò?ê?ē?×·???????×ē??×?-ēê??ê??×ò??×?·ê???????ò?·ē??ê??????·ē???????·????ē?????????×·?ē????ēê×ò??????×ê·??òò?ê?????ē????????ē×ò???·??-nisms. Concurrently, the Company implements multi-dimensional whistleblower protection mechanisms to safeguard reporting???ē×???

òē×??ò??×?????ē×ē×?ò?ò?òē×?E?ò???ê?

h??????ò??ē?×·ēê??????ē??×??òē×ē?×ò?????ē×?ò????×?ēê??ê?????·?ò???òē×?ê?×ò·ê??×ò???ēò?ēê×?×ē??ē?ò????·?òē?·ē??ē?×ê???ò???????×ē×?ò?h????????ēē???òē×?????·??????··??ē×ò??????ē??·?ò??·ē×ò?×ò???ē×??ē×?ò???ò?????????òē??ò-?ê×ò???ē?????????????·???×òē?·?òē?·ē?×ē?ē???????ē×ò?????ē×?ò???????×???ē??×?ò·?ò???òē×?ê×ē????????òē?ē?ensure that the whistleblower's information is not leaked. No one may disclose the whistleblower's information to any thirdparty without the whistleblower's written consent.

The Company established the ?ńń???????????ń????×???????????????×????????mitment, with Clause 10 specifying anti-corruption requirements for Sinofuseê?·ē?×·???????ē×?ò?ê?·ē×?×ē×???ēē??????ē×????êê?????????ē??Y??·???-×ò?????ē??òē?????×?ò??ē??C???????????????? with the Company. TheCompany implemented the ????}????????????????}??????[??????????????ē??ò????ê???ê·???ê×?ò·????×?·????ē×ē×?ò??ò??????òē×?ò???ò?ē?×·?ê???·-tices in tendering.

Whistleblower Protection

òē×??????ē×?ò?ò???×ēE?ò?????òē

SINOFUSE ELECTRIC ANTI-CORRUPTION TRAINING PROGRAM

?ò???òē×?ê×ē???×??òē×ē?

h??????ò????êê×??ê???òē???????×?ē????ē?·ē×???????????????×?ēê??ê???????·×ò??????ò?ê????ē?ē????ē????ē???·×?·???ē?ò·??ē??ē??????????ê?????·ēē??×?ò????ê??????ê×?????ē??????ē×ò??·ē×?×ē×???h??????ò????êê????×??ò?·??-sary security support for whistleblowers, including facilitating job position or workplace adjustments to mitigate potential risks,and seeking police assistance when required.

Safety assurance

Any form of retaliation against whistleblowers is strictly prohibited. The Company enforces zero-tolerance retaliation policies,imposing disciplinary actions (including warnings, demotions, and termination) per internal regulations, and refers criminalcases to judicial authorities.Protection against retaliation

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Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

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Compliance Management & Risk Mitigation

025026

A dedicated whistleblower hotline 029-68590655 is established, offering manual answering????×·??????ǎ???Eē?????YE?E?ò???ē??????%?×????

/ò?ê×?ò??òē?×ē?×ē??????ē×?ò?ê???ê×ē×???ò????×ò???????ê????òē????×????òē??ē??????ò??????ē??ê×??????×???????-nance structure led by the Board of Directors with cross-functional business team collaboration. Concurrently, the Company??ò??×·?êê??ò??ò·???×??×??òē×?·?ē×?ò?ò?·×?·?ê?ē????ê×·?ò?ē×?·?ē×?ò???????ò?????ē×?ò?ê????ê????òē?ē??ò??????êêimplementation of risk management principles and sustain corporate health.

Risk Control

Sinofuse Electric integrates compliance management into all aspects of business operations,empowering growth while optimizing compliance systems to align with laws, regulations,industry standards, and internal policies.

h????ē????ē?ò????×??×òē??ò?ê???×ē??ò????ē?·ē×ò???ē???×??ē??ē??????ò??????ē??ê×?????·???ê×?ò·???ò?????òē???ē???ò·??????×ò?·??????ē??????ò?ò·???????ēē??ò??·ē×?ò??ê????ê?????ò??ē?????????×ò?··????ò·??×ē?ē???ń????????U???÷???}??ń?????ń?×????÷????????????U???÷???}??ń?????ń?×????÷????, and }???????????C??????????????? issued byē??G?ē×?ò?ê??×ēM??·????×ò??·ē??ê?????ē×?ò??ē??????ò?????ê???òēē????????ê??ê????ê??ē??ò?????ē?·???ê×?ò·???ò?????òē??·???òē?ē??ò?????ê×?ò??òē?×ē?ē??ê?ē??ēê????????ê?ē×?ò???ò?×ò???ē??????ê????òē??E?ò??????ò????ê??????ē?êêê???ê??·ē×??-ê????ē×·×??ē??ò?×??ê???òēē??????????????????òē??×ò?ē??????·ē×?????·?ē×?ò??·???ê×?ò·???ò?????òē?h??????ò?·?òē×ò????ê?×???????×ē????×ò???·???ê×?ò·????×????·??ò×???ò??????··???×??ê?×?????·???ê×?ò·????ê?ē?????ē???including the ????[???????????????}??????????[????????????????????????????×??[?????????[????????(???????C??????????[???????????????(???????;????????[????????????????????????C?????????[?????????????????????}??????????????[???????????????:?????????[????????????????????C?÷???????????????[?????????}??????????·????×ò??êê???×ò?????????ò?ê???ê??

Compliance Governance System

Hotline

MailingAddress

h?????×ê???????,]??×ò??????·??×????·×?·?êê?????ē???·?×???êêē??????·?????ē×?ò???-lated reports.. A designated person from the Company's compliance management depart-ment regularly checks this mailbox to ensure timely handling of reported information.

nò·??ē?×òē?ē??ē????·ē?ē???????êêê??????ò?òē????×??×ò?ē??ē??×·????ê????òē???ê????????·?????ē??ò?ê?ò?×??ò??òē?·????ē×ē×??ò?????ò?·??????ē???ò??ē??

Risks of business disruption due to natu-ral disasters, accidents, system failures,or supply chain interruptions.

The Company's senior managementē????????????ē??ē??×·??ē??×?ê???????planning, with the Procurement Depart-ment leading decision-making and imple-mentation.ò??ò·??ò??ē???ò???ê×???????×?×ê×ē?×òthe supply chain relying on informationplatform to support digital supply chainē??ò??????ē×?ò??ò?????ê??????×??????ò?????ē???????ò?ê×ò?????×?ē???small-batch products.All suppliers must strictly adhere to theCompany's ?ńń????????÷(??????????????????????????ńń????C?????????????????????????????.

Optimize supplier portfolio and strength-en ESG risk management practices.

ESG issues in the supply chain, such as?ò?×??ò??òē?ê????×ò????ē?×·??ê????rights, health, and safety, leading toinstability in production cycles, non-com-pliance and safety issues with products,????êē×ò?×òò???ē×?????ê×·??×ò×?ò?unpredictable economic losses, andbrand impact.

???ê???·??????ē??ē??ē??×·?ê?òò×ò??enhance strategic risk management·????×ê×ē×????????ò????ê??ē??×??????ê-×ē?×ò???ē??òē?????ē?ò×ē×????????òthe Company's strategic direction andmarket demand.Dynamically monitor the macro-external?ò?×??ò??òē?ò???ê×·?ē??ò??×ò??×·?the enterprise operates, prudently studythe opportunities and risks brought????ē??·??ò?????ò?ē???????·ē×??????????ē??????òē?ò??????ò?ē?them in a timely manner.%?·???òē??×ē???ē×??×òò???ē×?ò??ē?·?-nology and products, independently buildleading core technological capabilities,and continuously enhance product com-??ē×ē×??????òē?????

,???ò]?????·??????ē??òē??×??òa×ò?????ê?·ē?×·????ē??%???????ē?????×ēē???×???×ê??ê????????×??????ē?×ê??×ò?????ē×?ò??????×?ê?ē??ò?????··???ē?????·ē×?ò??corruption-related leads.

Email

Strategic Risk

SupplyChainRisks

Supply ChainDisruption

SupplyChainESG Risk

Risk CategoryRisk DescriptionCountermeasures

Whistleblowing Channels

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

027028

The Company strictly adheres to laws and regulations such as the Law of the People's Republic of China on Enterprise Income Taxand the Law of the People's Republic of China on the Administration of Tax Collection?/ò?????ē??????ò???·???ê?ē×??ē?????-??òē????òē??ē?]E????????×êê×?ò?h??????ò?·?ò??·ē?×òē??ò?ê??ò?ò·×?ê?ò?ē?????×ē??òò??êê??ēê???ēē???ê?êê×ē?ē??·???ê×?ò·???ê×??ē×?ò??ò??????òē?ò?·?òē??êē???×????/ò?????ē??????ò???·?????ò?ē??ò?ē??ò×ò??×????ò?????òē?????ò????×?????×ò?×òē??ò?ê·?òē??ê??·??ò×??????ē???×?????ò?·?ò??·ē×ò?????ê????ê??????×ò?ē×?ò?òē???×????a??·×?ê×???ē??·ê???????×??·??·???×òē??????????during contract signing to facilitate tax planning and risk control from the source of business operations to ensure noarrears or underpayment of taxes. At the same time, the Company has established a training mechanism for tax personnelto continuously enhance the Company's tax compliance management capability.

a×ò?????ê?·ē?×·??×??×ē×?????ē???·??×ē??ò???×??·????×òē?×ò×ò???????ē×òē??ò?ê×ò?????ē×?ò??·??×ē???ò?????òē???ē???ò?????ò×??ē×?ò?ê?ē??·ē?????×ê?·?òē×ò????ê?????ò·×ò?ē?·?ò×·?ê·????×ê×ē×??ē?????ê???·??×ē??ē?ò??????The Company maintains strict adherence to laws such as the ?×??????????U???÷???}??ń?????ń?×????÷?????(??????????????????U???÷???}??ń?????ń?×????÷???????????????????÷???}??ń?????ń?×????÷?????????????}??????????÷??ń????C?÷???????????????.h??????ò??????ē??ê×????·???????ò?×????ò?????òē????ê?ē×?ò??ò??ē?ò???????·???ē??C?÷???????????????}??????C?÷???????????????[???????????????[??????}?????????[?????????}????????????????????????}?????????. With a clearly???ò????·??×ē?ê???????×??ē??·ē????????????????ē??òē??????ò??????·ē??ò??????ē??????ò??ò?????????ò×????ò??×??·ē??×ò?????ē×?ò??·??×ē???ò?????òē?·ē×?×ē×???h??????ò??ê??×??ê???òē??ē×????×ò?????ē×?ò??·??×ē??··??òē??×ê×ē????ē???·ê???ê????ò×ò??????ò?×?×ê×ē×???ē?êêê???ê???????×??×ò?ē×ē?ē×?ò?ê?ò??··??òē??×ê×ē??ò???·???òē?·?ò??·ē×ò?????ê??×ò???·ē×?ò?ē??ò????ē×??ê??????ē×ò?????êò????×ê×ē×?????×ò?ē???????ē×ò????×???ē??????ò???ē?×ò??·??ē×?·?ē×?ò?ò???ē??h/aɑ?h???ē??/ò?????ē×?òa?·??×ē????????òē?·??ò?????ò??ē???ē×??×ò???ē??????·×?·×ò?????ē×?ò??·??×ē??ē?ò??????????ò/aM?????/ò?????ē×?òa?·??×ē?E?ò???-??òēa??ē???ē?ò?????ò?~?/a/ò?????ē×?òa?·??×ē????????òē??·?ê×?ē??h?×?·??ē×?·?ē×?ò??êê?????????????×??·??ò???·??×ē?×?????·?ò·??ò×ò????ê??????·??ē??????????ê×?????ò??ē????ē?????ê??????????òē×ò???ē?????·????/ò?????a×ò?????ê?·ē?×··???ê×???×ē?ê???ê????×????òē??ò??????×?ò·??ò?×ò?????ē×?ò??·??×ē????ê?ē???×?ê?ē×?ò??

Tax Compliance

Data Security & Privacy Protection

Risks of legal liability, regulatory penal-ē×????ò?ò·×?êê????????????ē?ē×?ò?êdamage arising from non-compliantoperations or conduct by the Companyor its employees.

h???????÷???????(??????????????C?ń??????????????? and other businessethics management systems were estab-ê×????ē?????ê?ē????ê?????????×???ò?eliminate bribery and corruption.

Establish systematic quality risk manage-??òē???·??????ò???×??ê×ò??·????×ò?the project life cycle.Form a closed-loop risk managementsystem through risk management, report?ò?????·ē×?ò×???????ò?????·ē×??ò?ē×-?·?ē×?ò????ê×????×??????Conduct thorough inspections andē????ē???????×?ē×?ò?????×????×???òhazards.??ê??????????òē×?ò???ē×ò??×??×ò?equipment, implement a productionsafety accountability system, enhancestaff training programs, and institutional-ized safety awareness.Properly store raw materials required bybusiness operations in accordance withregulations, and properly handle produc-tion noise and discharge of waste waterand gas.

Establish robust organizational struc-tures, rules, processes, and operationalstandards for managing complianceincidents. Enhance capabilities to?????òē??????ò?ē???ò?????ê??·???ê×-?ò·??×?????ò???×ò?ē×??ê??ò?????·ē×??mitigation.

The risk that employees or their associ-?ē???··??ē??×?????×ò?ē??×?×ò???ò·?or position, or embezzle Company prop-erty through deception, concealment,collusion, or other means for personalgain, causing damage to the Company'sinterests.

Quality uncertainty risks arising frominadequate production technology, insuf-?·×?òē?????·ē???×?ò·?ò?×????ē×?ò???????·×?ò·×??×ò?????·ē×?ò???·???·?ò-trols.

]×????????????ê??×?ò????ē????··×??òē?during the use or storage of hazardouschemicals.

]×???????êê?ē×?òē?ē????????ò?×ò??ò?×-ronment and impact on nearby residentsfrom chemical raw materials, productionnoise, and discharge of industrial wastewater and gas required by or generatedduring business operations.

Legal andCompliance

Risks

ComplianceRisks

Integrity andEthicalComplianceRisk

Operational

Risks

Quality Risks

WorkplaceSafetyRisks

ò?×??ò??òē?êPollutionRisks

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

Security Emergency Response Measures

h??????òē??ē?òē×?ê???ē????×ê?????ò??ò????×ò?????ē×?ò??·??×ē??ē??????ò??????ē??ê×???????·??×ē?×ò·×??òē?????ò??mechanism and formulated the ?×??????????$?????????????}???. The Company has set up an emergency response team to???ò????·??????????×???ē???????òē×?ò???·????????·????????????ò?ē??????ē???·?òē×ò??ò·×????ò?·?ē??ē????×·??ē???·????????ē?·?ê??

Emergency Management Measures

Data Recovery Strategy

Information Security Management Measures of Sinofuse Electric

??/ò?ē?×·ē·???ê×?ò·??×ē?·ê???×??????ē?·ē×?ò????×????òē???êê???×ò?????ē?×?backed up using a strategy of real-time incremental backups and periodic fullbackups; quarterly data restoration drills are conducted to ensure the integrity?ò????×ê??×ê×ē?????·?????ē????/??ê???òē??ê??ò·???ē×?ò???ē????????·???·???òē??ò?·?òē??êê??na???ē?ē????ē?×·ē?ò??ē???×?????ē??ò?ê?ē??????··?????????òē×ò???ē?????·??????/ò?ē?êê?òē????×???òē×?×??????ē????ɑ?×ē?ê?ē??ē?×?????ē???????ò?êê???·?Y??ò???????????/??ê???òē·?òē??ê×??????×ò×?ē??ē×?ò???êê???·?Y?????ē×ò????ē????×?×ê??-es, prohibiting unauthorized installation of third-party applications;

??/??ê???òē???ê?ē×????ē·?×ò???????·?ē???×ò?ê???ē???ò???òē?ê??·????ê????ē·?×ò?????????????ē??????~×?×ē???????ē?×?????ē×??ò?ē???ê×?ē???×ē?ē??????ò????????×?×ē??????·?òò?·ē×ò?ē??×??ê?·ē??ò×·???×·??ē?ē??????ò???×òē??ò?êò?ē?????×ē???ēprior authorization;

7. Enhance information security awareness among all employees through training;

???×ê?×ò???·ē×?ò????·?ò??·ē??×òē??×ò?????ē×?ò·?òē????????????ē??ò????timely detection and resolution of issues. Registration is required for all external?×?×ē????òē??×ò?ē?????????????

9. Sinofuse Electric implements a tiered access control system for corporate cloud

?ē?????????×?ò×ò??????ē??òē????·×?·????×??×?ò??×ē?????·?ò???òē×?ê×ē?ê???ê?ɑ·?ò???òē×?ê???·??ē?×òē??ò?ê????ê×·??????·????ê?????

Enhance the current

backup and??·??????ē??ē???ē?

ensure accuracy

and reliability;establish trainingand drill mecha-

nisms.

Optimize theinstallationprocedures forcritical applicationdata.

Increase backup

equipment.

Enhance thebackup system to?×ò×?×????êò????×ê-ities in data storageand backup.

???ê????·???òē-ed backup and??·??????ē??ē??×???

?ò??ò·???????ò·??????ò????·???òē?ē×?ò???ê???ò?????ê?ē×?ò???ò?????ê????????ò·??????ò???ê?ò??ò?

strategies.?]???ê??ê????ê??ē??ò????×????????ò·??????ò???ê?ò??ò??ē??ē??×???????ò×????????ò·??????ò??ē??×ò×ò?????×?ò??·ê???ê????ò?ē????ê???ò??????ò?×?×ê×ē×????ē?????????????×ò?×ò·×??òē???ò?·?ò??·ē????ê????????ò-cy response drills.

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

ê×?ò×ò??×ē?a??ē?×ò??ê????ê????òē'??ê?

Climate Risk Adaptationò?×??ò??òē?êE?ò?????òēa??ē??Pollutant Treatment]?????·?nē×ê×??ē×?ò?ò??ò?????ē×?ò·?ê??×·?ê?ò?????ē×?ò?×??×????×ē?Y??ē?·ē×?ò

Climate Action &Green Synergy

h??????ò?????·ē×??ê??????????·ê×??ē?ē??ò?×ē×?ò?×????ò??????ē?ò×ē×????×ê??ē??????ēê?????ò·×ò??ò?×??ò??òē?ê?????-ò?ò·??ò??ò·???òē?/ò?????ē??????ò????ē???????ò·??green manufacturing deployment and low-carbon transition,?ē??ò?ē??ò×ò?×ē??ê???ê?????ē·????ē×ē×??ò???ē??????sustainable industrial upgrading. Concurrently, we optimizedoperational management through digital means, strengthened????ò??·ē?????ò???·ē??×ò?·????×ê×ē×???×òē????·??????ò·???ò?×??ò??òē?ê???ē?·ē×?ò???×???òē?ò?????ò?ò??????ē?×·ēê?·?òē??êê????êê?ē×?ò??×??×?ò???ò?×???????ē?????ê×ē???????ò?????·ē????????ē??ò?ē??ò??·????ò?··??òē×ò?methodologies for our dual-carbon goals and completed carbon???ē??×òē????????òē????????????·ēê×ò???E??×ò?????????the Company remains steadfast in anchoring its strategic road-???ē?????ò????ê????òē??×ò·×?ê??????ē???ē×·?êê?×òē????ē-ing sustainability across business operations.

In 2024, the Company fully implemented the Task Force onClimate-related Financial Disclosures (TCFD) framework, com-?ê?ē×ò????ē???ē×·×??òē×?·?ē×?ò??·ê×??ē????ê?ē???×????ò?opportunities./ò?????ē??????ò????????ē×?ò???ò???ē???a·????·????òemissions ?ǎ???? tons of CO

???×??ê?òē??ò?a·????·????òemissions ????ǎ??? tons of CO

???×??ê?òē?In 2024, the Company generated ??ǎ??? MWh through self-built???ē???êē?×·???ē????ò????·???????????? MWh of solar-basedgreen electricity.

????=??Y???????ò·?

Sinofuse Electric places great importance on the impact of climate change on our operations and has disclosed this informationin accordance with the TCFD recommendations this year.

h?????ê?×ò??????ē×·???ē?×ò??×ê×ē??×?·ê?-sure structure presents enhanced ESGreporting requirements for enterprises.

IncreasedExpenses andNon-OperatingExpenditures

a×ò?????ê?·ē?×·????·ē×??ê??ê×?ò?×ē??????ē×?ò??×ē?ē???????ê???ê????×ò?ē????·ē?????ēê×ò??×òē??}???????????? and???????????}???÷????×??}???????÷???????×???????ē??aē?ē???ò·×ê?×òē????ē×ò?·ê×??ē??×???????ò?ò·??×ē????×ò???operations through its ESG structure under the joint leadership of the Board and Strategy Committee.Climate Risk Governance Framework

×ē???????ò·?ē?ē??h%????????????????×??òē×???·ê×??ē????ê?ē???×????ò??????ē?ò×ē×??ē??ēē??????ò??????????·ē?????ò?????????ē??????·ē×??·??òē???????????h??????ò?×ò·??????ē??a'·?ò·??ē?×òē?×ē????×ò????×????ò-?????òē???·??????·?ò?×???×ò?·ê×??ē??ò??ò?×??ò??òē?ê??·ē???×ò?????·ē?????ē×?ò?????ê?·??×ò??ò?????òē?]?×òò?-??ē×?ò??ò??ē???ê×ò???ê×??ē??]?ê?ē??]×???ò?M????ē?ò×ē?E?ò?????òē

Climate Risk Adaptation

The Company regularly?×?·ê?????ò?×??ò??òē?êinformation in compli-ance with laws and regu-lations, and formulatesand publishes indepen-dent sustainabilityreports.

Medium

Term

LongTerm

Medium

Term

The Company has estab-lished a robust R&D???ē???×ē???ē?ò?×???????×?ò·??ê??????×ò?industry-leading techno-logical expertise and?ò?ò·×?ê·???·×ē?ē?maintain low-risk expo-sure in new technology????ê????òē×ò×ē×?ē×????The Company continuesē?×ò·?????]?×ò???ē-ment in product andprocess design, enhanc-×ò?ò???????·ē????ê??-ment and iteration capa-?×ê×ē×????×ê??×????×??×ò?its downstream demand???ē??ê×?ē???×?????ē?×ò-able industrial solutions.

IncreasedCosts

IncreasedCosts

Nowadays, dual carbon goals has been a??×?????·??????×?????ê????òē?ò?intensifying competition in the industry.h??????ò?ò????ē??·ē×??ê?×ò???ē×ònew technology R&D to maintain itsmarket position, potentially facing risks ofnew technology R&D failure.

a×?ò×?·?òē???????·??ò???×òò?ē×?ò?êò???ò????×ò???ē????ê×·×??·??ê?ò???ē×??ê?impact the operational performance of theCompany's downstream customers.

Types of Climate-Related Opportunities

Opportunity Description

FinancialImplications

Countermeasures

TimeRange

Trans-

itionRisks

Policy

andLegalRisk

ESGRepor-

tingObliga-

tions

NewTechn-

ology/ò???ē?

ment

Risks

Market

PolicyChang-

es

Techn-ological

Risk

Market

Risk

h??????ò??·?×????????·????????·?·?ò????ē×?ò×ò?????·ē×?ò?ò????·??????ē×?ò??ò?·??ē???·×?ò·?×??????-ments through operational optimization,low-carbon technology adoption, and?ò????????·×?òē???×???òē?????????

DecreasedCosts

The Company has built?ò?ò??????·×?ò·?E?ò?????òēYê?ē?????ē??·?×???×ò????ē???ò-agement of electricityand water resources,?ò??ê×ò?·???????ò?×??monitoring and earlywarning.

ShortTermResource??·×?ò·?

ResourceUtilization??·×?ò·?Enhanced

The Company optimizes its energy mixand increases the proportion of renew-able energy in total consumption toreduce reliance on fossil fuels, enhanceclimate resilience, and lower carbon emis-sions.

DecreasedCosts

The Company continu-ously optimizes its?ò?????ē??·ē?????·ē×??ê?embracing green energyand the circular econo-my.

ShortTermEnergySources

UtilizingRenewable

Energy

?ē?????ê·????ò???ê???×??ē??low-carbon transformation of the Compa-ny's industry, the Company can launchproducts that better align with dualcarbon goals through technological inno-??ē×?ò?·?ē??×ò?ē??????ē????ò??ò?×ò·????×ò?????ò?????ò???

Increased]???ò??

×ē??·ê???ê????ò???ē??ē?-gic roadmap, the Companymaintains its focus on themid-to-high-end power fuse?????ē??×ê??·ē×??ê?????ò?-ing into emerging industrialsectors including telecommu-nications, renewable energyɑ?×ò????ê?????????ò???ē×?ò??and rail transit, with prioritizedstrategic deployment in theò???ò???????×·ê??ò?energy storage markets.

Medium

TermProducts

anda???×·??

GreenProducts

anda???×·??

Physi-

calRisks

Stakeholders, including customers and×ò???ē?????ê?·?????ē????????×??ò?ò?×-ronmental information disclosure. Whenthis disclosed information falls short of?ē?????ê???????·ē?ē×?ò??×ē??????????-ly affect the Company's corporate imageand reputation.

Decreased]???ò??

To mitigate this risk, theCompany has established?·???????ò?×??a'management system,integrating ESG manage-ment into our risk control?????????ē??????òēē??occurrence of ESG-relatedissues.

ShortTermReputa-

tionRisk

ESGNega-

ē×????òē?

With the increasing frequency of extreme???·×?×ē?ē×?ò?ò?????×ò????ē?·ê×??ē?change, the Company faces heightenedrisks of exposure to these disasters andpotential losses.

CapitalExpenditureIncreasedCostsDecreased]???ò??

/??ê???òē?????????ò-tion emergency manage-ment protocols. Equipemergency equipmentand supplies, conduct?????×???ē???ò?ê??×??and establish emergencydrill mechanism.

Medium

TermShort-termRisks

Rains-torms

andFloods

Stakeholders, including customers and×ò???ē?????ê?·?????ē????????×??ò?ò?×-ronmental information disclosure. Whenthis disclosed information falls short of?ē?????ê???????·ē?ē×?ò??×ē??????????-ly affect the Company's corporate imageand reputation.

Decreased]???ò??

h??????ò?????·ē×??ê?×??ê?-??òē??????×????????·ē×??measures, including establishing???ê????·??ê×ò?????ē×ò??êê??-?ò·????????ê??????×?????×ò?cooling systems in factories and???·????????????ê?ē×ò?????-gency plans for heatstroke, and?·?×??×ò??ò????????×ò??ò?consumption reduction in coolingsystems.

LongTermReputa-tionRisk

ESGNega-

ē×????òē?

Types of Climate-Related Opportunities

Opportunity Description

FinancialImplications

Countermeasures

TimeRange

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

M??·????????·ē???ē??ê×??ò·?????????ê?·ē??ò×··????ò?òē??·×?·?×ē???ē?·ē×?ò???×·?????????ò???ê?ē???··?????×???????-×ò??×??×?ò?·?×ē×·?ê×ò???ē?×??×ò·ê??×ò?ē?ê?·????ò×·?ē×?ò???????×ò????ē??·ē?????ê?·ē?×·???×·ê?????×êē??ò?×ē???ò????ê??ò???????ē?êê?????·???×·?ê???·???×ò?????×ò??ò?×ò???×ò??????ò?????ē????ò??ē???ē?·?ò?ê??????×??ò??·ē????M??????-?·ē????×òē??ò?ē×?ò?êê?·??ē×???ɑ?hn~?n????ò???êê?·???ê??×ē???ē?n?ò??×ò?]?,a?×??·ē×????h??????ò?????×????a·??????×??×?ò???×?×ò?ē?????·?????ē×?ò?????ê?×ò?????ē×?ò?ê???×·ê???ò?ò?ē???ê???·?ò????-ē×?ò×ò?ē???·?òē??ò??ò?????×ē??×???????ē?????·×?·?ê???·?ò????ē??ē????????????··?????êê?×??ê???òē???·??-????????×????ē?????ē????ē??·??????????·ē?h?×????ē???ē×ê×???ē?????×??????·×?ò·????ē??·??ò????????×ê?ē????ē??ē???-mal transfer, generating reclaimed hot water for staff amenities while simultaneously reducing heating expenditures and×?????×ò?·?????????·??ê×ò????·×?ò·??×ē??ē?ē?ê×ò???ē??òē??]E????????ē???????·ē?·?×?????òò??êò?ē???ê??????-×ò??????????·??×·??ē???ɑ???×??ê?òēē???????×??ē?ê????E????ê?·ē?×·×ē??×ò?????????êē×ò?×ò???×???·????ò??×??×?òreductions of 39.89 tons of CO

???×??ê?òē?In terms of indirect carbon emissions management, the Company primarily relies on purchased electricity to support daily oper-?ē×?ò?????·???ò·ē×?ò???ò?????ē×?ò??ò???ò???????×·ê??ò????????×????òē???ò?????òēê????×??ê???òē???ē???ē×·??ò×ē??×ò??ò????òē×?·?ē×?ò???ē?·?ê???????·??????ê?·ē?×·×ē??ò????ē·?ò????ē×?òē???×òē?×òē??ò?????ò·???????×ò?a·????????ò??????????×??×?ò?×ò??òē????

Carbon Emission Management Indicators

Sinofuse Electric engaged an accredited third-party institution to conduct a carbon footprint assessment for its fuse products in??êê·???ê×?ò·??×ē?/aM?ha??????????ɑ'???ò???????????????ò???ē??×òē???????·ē??]???×????òē??ò???×??ê×ò????????òē×?·?ē×?ò?ò?·????ò×·?ē×?ò??Ya?????????ɑa??·×?·?ē×?ò???ē??????????òē??ê×??·?·ê?????ò??????????×??×?ò?????????ò?????×·?????ò?'?h?????????ǎɑò?×??ò??òē?êê???ê??ò???·ê???ē×?ò??h???///?ò?×??ò??òē?ê??·ê???ē×?ò??Y?×ò·×-ples and procedures), culminating in an audited }????????×??:???ń?????ń??. The Company conducted an in-depth analysis of?????·ē·????ò???ē??×òē?·ē×?×ē???ē?????ê×?????????×?ē???×??×?ò??·ē???ē?·?ê·?ê?ē??ò???ē?×ò·????òê???ê×ò?·??ē×?·?-ē×?ò?ē???????ē?ò????×?×ò?ê???·????ò?????·ē×?ò???·???????ò??ò·×ò??????·ē??ê?????????ò??ê???ê·????ē×ē×??ò??????×ê?????×?×ò?????ē?????ê?????×ò·ê??×ò?×òē??ò?ê??ò?????òē?????ê×?????×?ē?×??ē?????ò??ò?·?ò????????×ē?ē??ò?????òē?×?·ê???????ò·????ò??×??×?ò??ò???×?×ò???·ē???????×?????òē???ê?·ē?×··?òē??ê×òē????ē???????·ē??

????ò%??ē??×òē??ē×?·?ē×?ò

195.18

Scope 1 carbon emissionsof CO

???×??ê?òē

tons4,209.13

Scope 2 carbon emissionsof CO

???×??ê?òē

tons

h??????ò???????·ē×??×??ê???òē?ē×?ò?????ē?×ò??ê?????ê????òē?ē??ē??×??can further enhance its international repu-tation and meet the sustainability require-ments of international customers, facilitat-×ò??×??????ê×ē?????????????ò?×?ò?

Increased]???ò??

The Company attachesimportance to expanding???????????×ò????????·-ē×??ê?×???????×ē??????·ētechnology and manage-??òēê???ê?????ē??ò??-??????×ò??ò?·????ò???-duction measures to meet×òē??ò?ē×?ò?ê?ò?×??ò??ò-tal protection policies,thereby obtaining recogni-tion in the internationalmarket.

ShortTermMarkets

Interna-

tionalMarkets

h?????ê?·????òē??ò?×ē×?ò×???×?×ò?ē??expansion of the new energy market,fueling rapid growth in the Company'score business.

Increased]???ò??

The Company is proac-ē×??ê?×ò·????×ò?×ē????ē-print in the new energy??·ē???ê??????×ò?×ē??ē??ò?ē??×ò]?×òò???-ē×?ò?·???????ò?×??·??ē????òē??????ò?customer resources togradually broaden itsmarket presence.

ShortTerm

NewEnergyMarket

Resilience

The Company enhances its adaptability toclimate change to better manage relatedrisks and seize opportunities.

Increased]???ò??DecreasedCosts

h??????ò?×????ò×ò?its climate risk andopportunity manage-ment structure to·?ò??·ē????·ē×??×??òē×-?·?ē×?ò?ò?????????òē????ē?òē×?ê?×?????????-ē?ò×ē×??????ê??ē?ē??magnitude of impacts,and formulate targetedmitigation and adapta-tion measures.

ShortTermEnterpriseResilience

????KEYPERFORMANCE

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

Sinofuse Electric commits to the }???????????????·ē×??ê?×??ê???òē×ò??×ò?????ê????òaē??ē??????×?×ò?·??????ē?????òē??ò?×ē×?ò?×ē????ò??·????ò??ò?????òēē????ē?ē??????·?×??×ò?·????òò??ē??ê×ē????????

The Company has implemented a distributed???ē???êē?×·???????ò???ē×?ò???ē??utilizing factory rooftop space, with aninstalled area of 722.18 m? and a totalcapacity of 155.6 kW.

In 2024, the system generated atotal of 189.76 MWh of renewableelectricity, resulting in 105.66 tons ofM???×??×?ò?????·ē×?ò

Carbon Emission Management Goals

/ò?????ē??????ò?????ò·??×ē?????ò????ê????òē?ē??ē???????×??×ē×?×ò???ò????ê??ò?????ò?·????ò??×??×?ò·?ē?ē????????êē×?ê??ò????????×ò?×ò×ē×?ē×????Carbon Emission Reduction Initiatives

ProjectImplementation Plan

Energy Conservation andEmission Reduction Volumea?ê?????ē???êē?×·

powergeneration

The Company purchased 3,263.43MWhthrough green electricity trading.

???????ē?ò???M???×??×?ò?reductionProcurementof GreenElectricity

The system employs three high-performanceheat exchangers to facilitate oil-to-water heatē??ò??????ò??ê×ò?????·ē×?????ē????ē??·??????ò???????

òò??ê??????×ò?????????????òò??êM?????·ē×?ò??ǎ??ǎē?ò?Air Compressor

Waste,??ē]?·?????

System

2023202520392050

/ò?????ē??????ò?×ò???ē??]E?????×êê×?ò×ò?ò?×??ò??òē?ê?ò?????ē?×ò×ē×?ē×????êê?????ē×?ò?ê?????·ē???????ēē??/aM??????????·??ē×?·?ē×?ò????×????òē??ò???ē?×ò??·???????ò?×ò?·??ē×?·?ē???

SINOFUSE ELECTRIC ISO14001:2015 CERTIFICATION

a×ò?????ê?·ē?×·×??ê???òē?×ē??Y?êê?ē×?òY????òē×?ò??òē×ò????/????????òē??ò?'???òM????ē×?ò????ê×·????ē?×·ēê?·???ê?-ing with (????????????}?????????U???÷???}??ń?????ń?×????÷???? and related regulations, while systematically enhancing its?ò?×??ò??òē?ê??ò?????òē???ē??ē????????·???òē?×ò·ê??×ò?(?????????????÷???cń?????????????}????????????????}??????????????}?????????}????????$??????????????}??????????????????????(?????????????????????}????????. The Company×??ê???òē??ò????????×ò??ò??·????×?ò?ê?ē?·?ò?ê??×??×ò?????·ē×?òē?·?òē×ò????ê??ò??ò·??????·ē????????ò·???×ê?????·×ò??ò?×??ò??òē?ê×???·ē?h??????ò??????ē?×ò??/aM?????ò?×??ò??òē?êE?ò?????òēa??ē??·??ē×?·?ē×?ò?ò?·?òē×ò????ê?·???×????ē?ò?×??ò??òē?ê??ò?????òē×ò?··????ò·??×ē?ē?????ē??????×????òē??

Environmental Management System

SinofuseElectric's FirstYear of ClimateAction

Sinofuse Electricproduction base has

?·?×????????

renewable energyadoption across all

manufacturingoperations.

?ê×????????ê?·??×òcarbon-neutralproduct to market

·?×??×ò?CarbonNeutrality forSinofuse Electric

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

????

}????????(?????????????}????????InstitutionalDocuments

HandlingMethods

andOptimizationMeasures

The main pollutants are COD, BOD5, ammonia nitrogen,SS, total phosphorus, total nitrogen, etc.The Company's wastewater primarily consists of con-·?òē??ē????ē??????ē?????×?????ē?????????ē×?òsystem and condensate from the steam curing process,??ē?·ê???×?????·ê??ò?×?·???????ē??????ē??×?wastewater undergoes oil-water separation beforebeing discharged, along with concentrated water, con-densate, and domestic sewage, into municipal pipelines??ē??ē???ē??òē×òē????·ē??????ē×·ē?ò??ò?????òē??-ing local water bodies directly.

MonitoringMetrics

h??????ò?×??ê???òē?·???????ò?×???ò?×??ò??òē?ê??··???ē×?ò?ê???êē??ò?????ē?ɑ,a???ê×·×?????ē??ê×??×ò??ò?êê??ē???safety accountability system, operating a cross-functional Safety Committee, and deploying dedicated EHS professionals. The????ò?·?òē×ò????ê?×???????×ē??··???ē×?ò?ê???êē??????ē??ò??ò?×??ò??òē?ê??ò?????òē???ē????????×?×ò???ê×·×???ò????·??????×ò·???ê×?ò·??×ē?ò?ē×?ò?êM,a??????·ē×?ò????ē???ò??·???ò?×??ò??òē?ê????ê?ē×?ò??×??ê???òē×ò???????×??òē×?·?ē×?ò?????ē?ē??×ò×ò????????ò·???×êê?????ê??????òē×?ò??·??ò×?????ò??ē????????ē????ò×ē??×ò????×ê???ē?×ò×ò?h×????????ē??ē?ò????×??ē×?ò·??ē×?·?ē×?òē?????·ē×??ê?·?òē??ê,a?×????ò??ò??ò·??????ê?·?????ē??ò??ò?×??ò??òē?ê·?ò-ditions for employees.

Management Structure

h??????ò?·?ò??·ē????×??×·ē??×ò×ò?????×?ò??òē??ê?ē??ēò?×??ò??òē?êa???ē??ò?,?????/??òē×?·?ē×?ò/ò???ē??aē?ò-??????ò???ê???òē·????ē??×?????×ê?????ò×?×ò?×?????ê???ò?×??ò??òē?ê??êê?ē×?ò??????ò·???×êê??h????×ò×ē×?ē×????????ē??ò??ò·??????êê????ē??????ò???????×ê×??×???????òò?ê?×ē???????ò·??????ò?????ē?·?ê??ò??????ē×?ò?ê??ē????ê??×????ē??ò?ē??ò×òē????????×ê×ē????ò????·×?ê×????????ò??ē??????ò??ê???ē?ē??????ò????ò?×??ò??òē?ê??êê?ē×?ò??????ò·??????ò??·????×ê×ē×???/ò?????ē??????ò??????ē??ò???????ò?×??ò??òē?ê×ò·×??òē??

Environmental Risk Management and Response

For wastewater discharge management, Sinofuse Electric established the }????????(?????????????}???????? at the corporateê???êē??ò????·???ê×?òē???ē???ē???×?·???????ò·????òēê???????·ē×?ò?????×??ê???òē??ê?·?ē×?ò????·×?·???×???òē????????????·?????ē×?×??ē×?ò???ē?·?ê???ò?×ò????ē??·ē???????ê????òē×ò×ē×?ē×????ê×?ò???×ē?ê?·?ê×????ò?×??ò??òē?ê???-??ò?ò·??ē??·ē?????ē??????????·×ò??????????êê?ē?òē?×?·???????ê?????

Wastewater Management

ActivitiesCovered

EnvironmentalAspects

Environmental

Impacts

Control Measures

Production·ē×?×ē×??

SoilandWaterPollution

The Company implements operational controls in strict accor-dance with (?????????????÷???cń?????????????}?????????????????}??????????????}????????????}????????$??????????????}?????????, ensuring compliance with statutory and regulatory require-??òē?ē?????????ē???ē×·?ò?×??ò??òē?ê??ò×ē??×ò??????ē?-water discharge.Wastewater

Discharge

Atmo-sphericPollution

The Company implements operational controls in strict accordancewith the (?????????????÷???cń?????????????}????????????????}??????????????}????????????}????????$??????????????}????????,?ē×ê×?×ò?????ò·?????ē·?êê?·ē×?ò???ē?????????ē×·?ê?ē???ēē??control. Compliance with statutory discharge standards is rigor-???ê???×òē?×ò??ē???????ē??·ē?????ò?×??ò??òē?ê??ò×ē??×ò???particulate emissions.Waste GasEmissions

SoilandWaterPollution

The Company implements operational controls in strict accor-dance with the (?????????????÷???cń?????????????}????????????????????}?????????and}????????$??????????????}????????,with centralized disposal of both general and hazardous wasteē??????·??ē×???·?òē??·ē????ò???·?òē??·ē????×ò×?ē??????ē??'?ò???êE?ò??????M??·??Solid Waste

Disposal

NoisePollution

The Company operates in full compliance with its (?????????????÷???cń?????????????}?????????????????}??????????????}????????,and }????????(?????????????}????????, implementing noise mitiga-ē×?òē?·?ò?ê??×???ò?·?ò??·ē×ò??òò??ê??ò×ē??×ò?ē????×???êêdischarges meet regulatory requirements.NoiseEmissions

Sinofuse Electric strictly adheres to laws and regulations such as the ?????}????????}??????????????????U???÷???}??ń?????ń?×????÷???????}????????}??????????????????U???÷???}??ń?????ń?×????÷??????ò?a?ê×???ē?Y?êê?ē×?òY????òē×?ò?ò?Control Law of the People's Republic of China, as well as national and industry standards like the (??????????????÷??C?????????(????ń?????]???????????? (GB12348-2008) and ???????÷??}?????????????????????????U???????÷;??????C??????????????????(GB 18599-2020). the Company has implemented rigorous pollutant control measures, maintaining procedural documents suchas the (?????????????÷???cń?????????????}????????????????}??????????????}?????????}????????$??????????????}??????????????????????(?????????????????????}???????? to guide the management of wastewater, emissions, noise, and solid waste?????????ē×?ò???ò???×ò?·???ê×?òē?×?·??????????ē???ē???ò???×??×?ò??????·ē×??ò?×??·?òē??ê??ò?????????ê×????ē?disposal.

Pollutant Treatment

36,836.80Total domesticwastewater discharge

??

Environmental Risk Management & Response of Sinofuse Electric

Wastewater Management of Sinofuse Electric

????KEYPERFORMANCE

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

041042

49.30

Total generation ofnon-hazardous waste

tons

5.93

Total generation ofhazardous waste

tons

指数代码Pollutant Emission Control ProcedureInstitutionalDocuments

The Company's was gases primarily consist of tinning fumes from solder-coating processes,welding particulates, volatile organic compounds (VOCs) from printing/curing operations, andinjection molding emissions.Main Types of

Waste Gas

The Company's manufacturing emissions are systematically controlled through engineeredsolutions: tinning fumes and welding particulates are captured by hooding systems and treat-ed via triple-stage ?ltration before elevated stack discharge, while injection molding emissionsand VOCs undergo dual-stage activated carbon adsorption prior to release through dedicatedstacks.

Waste Gas Pollution Control of Sinofuse Electric

Solid Waste Management of Sinofuse Electric

指数代码

For the management of air pollutant emissions, Sinofuse Electric strictly adheres to relevant laws and regulations to controlpollutants such as exhaust gases generated during the Company's production processes, ensuring compliance air pollutantemission standards. Concurrently, all manufacturing facilities actively implement customized emission reduction initiativesbased on their operational contexts.

Waste Gas Pollution Control

Solid waste generated during operations is disposed of in strict compliance with relevant laws and regulations. During thereporting period, all general industrial solid waste and hazardous waste generated by the Company were entrusted to quali?edthird-party contractors for compliant disposal, with comprehensive assessments con?rming that input, activity, and outputprocesses were evaluated to have neither generated nor potentially caused material environmental or social impacts. Domesticwaste generated from operations was subjected to classi?ed collection followed by centralized transfer and treatment/disposalprotocols, with operational reviews con?rming no resultant environmental or social impacts.

Waste Management

Sinofuse Electric adheres to the and ISO 50001 standards, optimizingenergy and material management across operations. The Company has established internal regulations like the Resource and

.Through source reduction, process control, and end-of-pipe treatment, the Company has achieved clean production and energydecarbonization, earning dual recognition as both a "Shaanxi Provincial Green Factory" and a "National-Level Green Factory" in2023. In 2023, the Company obtained ISO 50001:2018 certi?cation, and maintained stable production operations with continu-ous energy management improvements in 2024, achieving 100% compliance in supervisory audits.

Resource Utilization and Conservation

SINOFUSE ELECTRIC AWARDED GREEN FACTORY CERTIFICATION

2024KEYPERFORMANCE

HandlingMethodsandOptimization

Measures

指数代码Pollutant Emission Control Procedure Waste Control ProcedureInstitutionalDocuments

Recyclable general waste: non-hazardous waste that can be reprocessed into new materialsthrough recycling methods.Non-recyclable general waste: non-hazardous waste that cannot be feasibly recycled due tocontamination or material composition.

Main types ofwaste gas

The Company's general waste is disposed of as domestic refuse, transported daily to designat-ed waste stations by waste management staff.Hazardous waste was disposed through engagement with licensed hazardous waste treat-ment contractors, who undergo mandatory "Hazardous Waste Operator Competency Evalua-tion" protocols and adhere to the Company's environmental governance structures.

HandlingMethods

andOptimization

Measures

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

043044

46,046Total water withdrawal

tonsThe Company sources all water from municipal supplies, withdomestic sewage discharged into municipal pipelines. The Compa-ny has established the ??????????(?????????????????????}?????????ē??ē?ò????×????ē????ò?????òē·???????ò?×??ê??h????-??ò??·?×??????ē×??ê??ē????????·??ē×ê×??ē×?òē???????ò×òē?-grated human-digital management system.

Water Resource Management

/ò·???ê×?ò·??×ē?ē??'?h???????????ò??????ò?????òē???ē???ē?ò?????a×ò?????ê?·ē?×·??ē??ê×????×ē??ò??????ò-agement system (EnMS) by formulating the (?????[?????????[????? and supporting procedural documents, promulgating the?ò??????ê×·????????ê?ē???·???ê×?ò·??·?òē×ò????×????????òē???ē×?ò?ê?ē×ê×??ē×?ò??ò?·????ò???×??·?ò?????ē×?ò?????ò-×ò?????????ê??ò????????·ē×????ē????ē???ò???ò?????òē??????????ò????·×??×ò?????ò×??ē×?ò?ê?ē??·ē???????????·?????ê????????ò?×?×ê×ē×????ò???ē???×ē×??ē??ò????????·ē×??·????ò??·?òē??ê??ò?·????×ò?ē×?ò???ò??????ò?????òē?·ē×?×ē×???ē???????????òē??×ò?ē???·?×?????òē????ē?ò???????ê??????·×ò?·?ò????ē×?ò??ò??ò??ò·×ò????·×?ò·?ē?????????ē?×ò??òEa?????ē×?ò?/ò%????????????a×ò?????ê?·ē?×·??ē?×ò??×ē?ò????E?ò?????òēa??ē??ɑòEa?·??ē×?·?ē×?ò?

Energy Management

/ò??????????×ò?ē?ē???'???òE?ò???·ē??×ò??'???ò???ê????òē???×ê???????ē??????ò????ē???????ò·??×ē?????ò??ò-???·ē??×ò????ê????òē?ò?ê???·????òē??ò?×ē×?ò??ē??ò?ē??ò×ò?×ē??ê???ê?????ē·????ē×ē×??ò???ē?????????ē?×ò??ê?×ò???ē?×-al upgrading. Concurrently, we optimized operational management through digital means, strengthened the factory's green??ò???·ē??×ò?·????×ê×ē×???×òē????·??????ò·???ò?×??ò??òē?ê???ē?·ē×?ò???×???òē?ò?????ò?ò??????ē?×·ēê?·?òē??êê??pollution emissions, and increased the proportion of green products.??·ē×??ê??ò?????×ò·×?·?ê???·?ò??????·ē×·??ē?×????????????·??ē×ê×??ē×?ò???·×?ò·??h??????ò?????ē??????ò·???????·ē×?ò???·??????ò????×???òē??×?ò×?·?òēê?????·×ò???êê?ē?òē??ò???ē×?ò??×ē?????ē???ē???????·ē×?òê×ò??×ò?ê?·??h????ê×ò?????ē????×????ē???ē×?òê???ê???ò???×ò??????????·ē·?ò?×?ē?ò·????×?×ò?ē??????ê????òē???????·ē×?ò?????-ē×?ò?ē?????????????ò?????ê×??ê???ò?ē?·?ò?ê??×·?êê?????ò·???×??·ē×?ò??E??ò??×ê???????·ē?????ē??×?ê???????·??-posite round pipes, ceramic round pipe materials, etc. are recycled by the enterprise. For materials that the Company cannotrecycle, they will be properly handled by professional third parties.

Green Manufacturing and Circular Economy

1,341.85h?ē?ê·???????ò?×???ò????consumption of the Company

tons10,124.67

Electricity consumption

MWh

81,086

Natural gas consumption

??

189.76

Solar energy consumption

MWh3,263.43Purchased green electricity (solar)

MWh

Energy ConservationE?ē??×?ê??·×?ò·?

?The Company implements intelligent lighting·?òē??ê??×ē???ē×?×?????ē?????ò?×ē??ò???ēē????·???????·????????·ē×?ò???????ò????×??òē×?ê??ò??ē??·?×??????×????ò????·?ò-?????ē×?ò??The Company continues to strengthen its greenelectricity adoption and infrastructure deploy-ment to accelerate low-carbon operations;?h??????ò??ò???·???ē?×·ē?ò?????ò??·ē×??-tion protocols for all electrical equipment, elimi-nating idle operation through real-time work-load monitoring;?The factory prioritizes technical upgrades for

electrical equipment, implementing phased elim-×ò?ē×?ò?ò???ē???ēē×ò????ò?????×òē?ò?×?????·?????????×???òēē??????ê×??·?·ê??ò???????·×?ò·?????????òē???All departments implement mandate automaticē??ò?×ē×?ò?????·????×???òēɑ·????ē??????×òē-ers, copiers) to low-power sleep modes during×ò?·ē×?×ē????ē×?×?×ò??ò????·?ò????ē×?ò??ò-agement plans;????·?ē?????????×ê?????·ē×?ò?×ē???????

temperature controls.

?Y????ê??????·?×ò×ē×?ē×???????·??????·?ò-sumption;?%????×òē?ò?ò·???ē??×?ê????ê???òē?????ē-ments shall prepare budgets and consumptionplans by material type;?h??????ò??ē?×·ēê??ò???·?????·×?ê???×·ê?

management protocol;?The Company prioritizes the procurement of

ò???ò??????ēē????ê?·ē?×·???×·ê??ɑ~?????

×ē?·??????ē????ē??×?ò×?·?òēê?????·×ò?M?

emissions and fossil fuel consumption;?]?ê???òē?????ē??òē????êê?ò??ò·?ē?·?ò?ê??×-

cal upgrades for production equipment and

process optimization to reduce raw material

consumption, thereby embracing green manu-

facturing.

????KEYPERFORMANCE

????KEYPERFORMANCE

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

a×ò?????ê?·ē?×··?òē×ò????ê???ò×ē???ē???·?ê??×·?ê×???·ē???×ē??·?ò??×·?·ē×?×ē×???ò???·??ò×???ē?????×ē×???ò?×??ò??òē?ê·?òē?×??ē×?ò???×ē???ē??????·ê??ò×ò??ò?green space maintenance efforts. In accordance with the cń????????:??????????????????????????????????????×???????ē??'?ò???êM??·???ē??aē?ē???ò·×ê?ē?????}????????}??????????????????U???÷???}??ń?????ń?×????÷????, the Regulations on GroundwaterE?ò?????òēɑaē?ē???ò·×ê?·??????ò??ē?????ê???òē?ē?ē?ē?????????????ò???ê×·??×??·ē×??????·?ò??·ē???ē???ē×·?????ē?ò×ē?×??òē×?·?ē×?ò?ò??????ē×?ò?ê?×????????-ments.

E??×ò????????????×êê????ò??·????×?ò?ê????·ē×·??×òē?????ē?×?ê?ò?????ē×··?ò?????-ē×?òē????ê×??ē?????×ē×??×???·ē??×ē?????ò??×ê???????/òē??ò?êê????????????????ē??ē???×ò?ē???????ē×ò????×???ē??????ò????ò?ē·??????ò?ò???ē×???·?ê??×·?ê×???·ē?×ò??????ò??×??×????×ē???×·???????×ò·ê??×ò?ò?ē????????????ò???????????ò?production bases near such areas.

ECOLOGICALENVIRONMENT

045046

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

ê×?ò×ò??×ē?a??ē?×ò??ê????ê????òē'??ê?

h?·?ò?ê??×·?ê/òò???ē×?ò\??ê×ē???òē?×·a???×·??Y????·ē??×?ò??ē????a???×·?ò??ò·???òē

Technological Innovation& Premium Services

Sinofuse Electric places high importance on product responsibil-ity and technological R&D. We strictly control product quality—?????????ē??×?ê???·?????òēē??ò×?????????·ē??×???òē?multiple inspection stages ensure product reliability, meetingcustomer needs, ensuring safety, and reducing after-sales risks.The Company demonstrates its ESG commitment by strategical-ly allocating substantial R&D resources to establish specializedē??????·?????ò?????ē??????×òò???ē×?ò?×òò???ò????????ē?·?ò?ê??×???????·??×ò?·?×ē×·?ê??ēēê?ò?·??ē?ê??ò·??×?????-?·×?ò·??????·ē?ē??ē?ò??ò·???ē??????ē·????ē×ē×??ò????ò??ê???ê×ò???ò·??ē????????×?×ò?×ò???ē??????ò·???òē??×ê???????×ò??????·ē???ê×ē??ò?ē?·?ò?ê??×·?ê×òò???ē×?òinto corporate DNA.

As of December 2024, the Company maintained a robust R&Dworkforce of ?ǎ? professionals, representing ????? of totalemployees, including 1 PhD and ?? master's degree holders,?×ē???ē??ê?ē????ē??·ē??????ē?ò?×??×ò???ē???????ē×????ò?×ò???ē???ê???×ò???????·?·????×ê×ē×??ē???×?????ē?×ò??ê?×òò?-??ē×?ò?By the end of 2024, the strategic IP deployment included trade-???????×?ē??ē×?ò??ò???ē?òē?ê×ò??×ò??êē×?ê????×??×·ē×?ò?including China, the United States, the European Union, theUnited Kingdom, Japan, and South Korea with formal authoriza-tions secured.As of the end of 2024, the Company held ?????ê×??????ē×·patents, with ????ē?òē???ê×·?ē×?ò??ê??×ò?????h??ē??×ò×ò?sessions on intellectual property protection were conducted duringthe year.

????=??Y???????ò·?

China Electrotechnical SocietyScience and Technology AwardHigh-Tech Enterprise

M?ē?ē?ò?×ò????ò·??Manufacturing Enterprise

a???ò?×Y???×ò·×?ê'???êê?òē????×??a???ò?×Y???×ò·×?êE?ò???·ē??×ò?Champion Enterprise?a??·×?ê×????a???×?ē×·?ē???×?????òē×?ê?ò?/òò???ē×???aE?

China Electrotechnical Societya???ò?×Y???×ò·×?ê????ē??òēof Science and Technologya???ò?×Y???×ò·×?ê????ē??òē

of Science and Technologya???ò?×Y???×ò·×?ê????ē??òē??Industry and InformationTechnologyMinistry of Industry andInformation Technology??×ò×?ē??ē×?????×ēē????Xi'an High-Tech Industries???ê????òē?ò?

Issuing AuthorityAwards & Honors

×ē?ē?????×??×????×ò???ē?×????·?????ē×?·×?ê×òē?êê×??ò·???ē?·?òē?????~M?h??ò??????×??×òē?êê×??ò·??????ò???ê?ò????·×?·????×????òē????????ò??ē??????????·×?·?×ē???ē?·ē×?ò???×·???h??????ò??×êê?·ē×??ê??????ò?ē?×ò???ē??·??ò????ò???·???ò·?òē×ò????×òò???ē×?ò×òē???×??·ē×?ò??×ò???ē??????ò????·???×òē?êê×??ò·??ê×??ē??×??ē???×?ò??×ò-×?ē??×??ē×?ò??ò???·??????×ê×ē??h??????ò??ē??ē??×·?êê???·?????ò?ē?·?ò?ê??×·?ê×òò???ē×?ò???×òē????ē??×òò???ē×?ò?????ē??×?ê×òò???ē×?ò??ò????ò???·-ē??×ò????·???×òò???ē×?ò????×?×ò???êē×?×??ò?×?ò?ê×ò×ē×?ē×???×ò·ê??×ò???????·??????·ē?????×ò???·?ò??êē×ò????×òē????ê??-??òē??×ò???ē???ē?ò???????ò?×òò???ē×???????·ē????ê????òēē??????????·?êê?????ē×?ò??×ē???????·?×ò?ē×ē?ē×?ò??·?ò-??êē×ò???????ò??ē?ò??????×ò???ē??????·×?ē×?ò?ē????????·????òē·??êê?ò????ò???ē???×ò???ē?×?êò?????h??????ò??????ē??ê×?????·???????ò?×??ē??ē×ò?×ò????ē??·ē???×ò·ê??×ò?,×???~?êē???ê?·ē?×·?êh??ē????????????òē????·ē??×?ē×·h??ē????ò?×??ò??òē?ê]?ê×??×ê×ē?????~×???ē×?ò?a??·?h??ē?????]??/ò???·ē×?ò]?????ò?/òē????ē??h??ē×ò?%?·×ê×ē?ɑ·????×ò??×??ò?×?ò?ê?????×·?ê???ē??×?ê?ò???·??ò×·?ê?ò?ê?????????×?????×ē?·?ēē×ò??????×ò?ē????òē?ē×?òē????-???ēò???????·ē]?????ê×ē??ò??ò·???òē?ò?×ò???ē×??ē×??ē??ē×ò??h??????ò??????ē??????·×?ê×????×ē?×???ēē???a???ē?×?·?×ēh??ē???ɑ,×???~?êē???ê?·ē?×·?êh??ē?????×ē??????~???×?????êē????ò?????????×ò?·???·×ē????ò?×ò????ò??×ò????????·×ê×ē×??·????ê????×??ê?ē×ò???ē???ē×????ò?×??ò??òēê???×ò??·ē?ò·??ò??×????êē×ē???×òē?????ē×?òē??ē-ing. As of the end of 2024, the Company had a total of 296 R&D personnel, accounting for 21.5% of the total workforce, includ-ing 36 master's degree holders. The team structure is stable, with experienced professionals and leading R&D capabilities in theindustry./ò??????×ē?ē??????ò??????ē?×ò??×ò???ē??òē?ò???·????]???????ē?ē??????ò???ē?·?ò×·?ê?ē??ò?ē??ò???êē×?ê?×òò???ē×???·?×?????òē???·?×???×ò???ē????·??ò×ē×?ò?ò??×?????????·?ò??ê?????òē????·??ē??????ò?????·×?ē×?ò??/ò?????ē??????ò??????·??ò×??????ò?ē×?ò?ê?ê???ê?,×???h?·?òē????×?????a???ò?×Y???×ò·×?ê'???êê?òē????×?????ò???a??·×?ê×????a???×?ē×·?ē???×?????òē×?ê?ò?/òò???ē×???aE????ē??E×ò×?ē????/ò???ē???ò?/ò?????ē×?òh?·?ò?ê????/ē?ê????·?×?????ò?????·???ē???×ò?ê?·ē??ē?·?ò×·?êa?·×?ē?a·×?ò·??ò?h?·?ò?ê????????a???ò?×Y???×ò·×?êE?ò???·ē??×ò?a×ò?ê?????×?òòē????×???M?ē?ē?ò?×ò????ò·??E?ò???·ē??×ò?òē????×???

Innovation System

h??????ò?·?êê?????ē???×ē??ò×????×ē×??ē???ê?·ē??ē?ē?ò?×ò??ē???òē??×??ê???òē×ò??ò×ò???ē????·????×?×òē????ē??ē??×ò×ò?????ê?n?×ò?Y?ɑY????·ē?????????ò×ò????ē????ê??????·?êē×??ē?ò??ē???ò???ē×?òē?·?ē?ê?òē?×ē?????ē?·?ò×-·?ê?×ò???ē??×òē????ē×?ò???×??×ò?ē??ē?ê?òē?×??ê×ò???ē???ò?ò×????×ē×???ò??òē????×????a×ò?????ê?·ē?×··?òē×ò???ē?????ò·??ò×????×ē???òē????×??·?êê?????ē×?ò???????×?ò?????????òē??×ē?G??ē????ēnò×???-?×ē?a·???ê?????×?ē????E?ē??×?ê?a·×?ò·?Y??·ē×·??????×ē?G??ē????ēnò×????×ē???ò??ē?·?ò?ê???????ê????òē·?òē??·ē?×ē?h?×ò????nò×????×ē??h??????ò?????ê??????×òē???ò×????×ē??????ē?×òò????ē??×?ê??ò?ò???ò???????ē??ē??×·ē?·?ò?ê???·???×ēē?????×?????

/ò?????a×ò?????ê?·ē?×·?ò?????×òē??a???ò?×Y???×ò·×?êa·×?ò·??h?·?ò?ê???????ē??òē?????êê?ò???×?ē×ò??×ò×ē×?ē×???·?êê?????ē×ò??×ē??????ò??òē?ò???·×?ē?ê?ē?????ê????ē????????·?×ē×·?ê·???ē?·?ò?ê??×????··?ê???ē?·?????·×?ê×??ē×?ò???????]??·?×?????òē???ò????ê×·ê???ê×·×ē??ê?ē×?ò??ò????ē×·×??ē×ò??ò×ē?ē?????????ò×òò???ē×?ò·??òò?ê??

/ò???ē???·????×??]?????·?Exchange and Collaboration

G??ē????ēnò×????×ē?×??ò?ē×?ò?ê????ê?%×??ē?ê????×ò×ē×?ē×???ò×????×ē??ò???????????×ò???????Y????·ē?????×???????·?ē×?ò??·?êê?ò·??/ē????×?ē???×?·×?ê×ò?×???·??ò×???????ē????×??×ē??×?·×?ê×ò??ò???ē??????Y????·ē??ò??=??a????×??×?·×?ê×ò???a???ò?×Y???×ò·??h??????ò?????òē????×òē????????·?·?êê?????ē×?ò???????òē?×ē?G??ē????ēnò×????×ē?ē???×??ē?·?ò?ê??×·?ê×òò???ē×?ò×ò??ē??×?ê???·??????ò??ē??·ē???ê???×?ò??ē???×ē×?ò?ê???????×ē????·???ò????ê??×ò?????ē??????ē??×?ê???·???ē?·?ò?ê??????ò??ē???ò???ē×?ò?ò???????ē?·ē×?ò???×·???

NORTHWEST UNIVERSITY-SINOFUSE ELECTRIC JOINT TECHNOLOGY R&D

Technological Innovation

2024 Innovation & Technology Achievements by Sinofuse Electric

SINOFUSE ELECTRIC 2024 COLLABORATIVE R&D ACTIVITIES WITH UNIVERSITIES

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

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a×ò?????ê?·ē?×·?·ē×??ê?·?òē?×??ē??ē??×ò???????????ē???????ò×??ē×?òē??????×ē????ē×·×??ē×?ò×òò?ē×?ò?ê????????·ē??ê??????×ò?ē?·?ò×·?ê?????ē×???ò?×ò???ē???????×?ò·?ē???×??×òò???ē×?ò?h??????ò????????????ē?òē×?ê·?òē?×??ē×?ò?ē??×ò???????ē??×?×ò????ē??·ē???????ê????òēē??????×ē?????×ò??ê????òē×òò?ē×?ò?ê?ê???ê?????·ē????×ê???×òē?×ò×ò?ē?·?-ò?ê??×·?êê???????×?×ò~·????×ò?×ò????ē??·ē????ò??????????·ē×òò???ē×?ò?/ò?????ē??????ò???·?????ò?×????ò???ò-ufacturing, further enhancing industrial manufacturing capabilities in sectors such as rail transit and nuclear power.

?ē???ò????????ē???ē??ē??×·/Y???ê????òē×ò·ê????ē???????????×?ē??ē×?ò??ò???ē?òē?ê×ò??×ò??êē×?ê????×??×·ē×?ò?including China, the United States, the European Union, the United Kingdom, Japan, and South Korea with formal authorizationssecured.Y??ē×·×??ē×?ò×òG?ē×?ò?ê?ò?]??×?ò?ê=??Technological Innovations

h??????ò??ē?×·ēê?·???ê×???×ē???ê???òēê????ò?????ê?ē×?ò???·???ē??????????÷???}??ń?????ń?×????÷???? concern-ing intellectual property protection, and fully implements IP protection measures. With the C???????????}??ń???[????????????????a×ò?????ê?·ē?×·??×ē?·?????ê×·??ē??????ò?·?òē×ò????ê?×???????×ē?/Y??ò?????òē??·??ò×????/ò?????ē??????ò????×????ò?????ê???òē????ê???òē??·???òē?ē???ē??ê×???ò????ē??????×?ò??ē??/òē?êê?·ē??êY?????-ty Management System. This system implements categorized management of patent rights, trademark rights, copyrights, and?ē???/Y?×??ē???ò???×ò?????·ē×?????·?ē×?ò??/Y???ē?·ē×?ò?·?????êê?????ē??òē?×ò]????ê?????ê×????????×·????ò??ē???operational processes.

Intellectual Property Protection

h??????ò?×????·?ē×ò??·???????ò?×???ê???ê×??ē×?ò?ē??ē???????ē??ê×??×ò?????????????×?×??×???ò????ê×?ē??ē??ò??ò·?×ē???ê???ò?????×·?ò?ē???????×ê??×??êē?ò????ê?????ê??×ò?×òē??ò?ē×?ò?ê?????·ē×?ò??·×ê×ē×??ē??×????×????ò???·-ē??×ò?·???·×ē??ò??ē??ò?ē??ò????ê?·??×ò???×ê×?ò·??/ò??????????ê×???????????ò·??ē?ê???êē???????×?×ē×?ò?ē??ê???ē????ò???·??ò×ē×?ò?ò?×òē????·????ē?×ò??ê?×òò???ē×?ò?ē?×òē??ò?ē×?ò?ê?????ē??????ò?ē??ē×ò????·???×ē??òēē??????ò?×-ble global expansion.

Global Expansion in Full Swing

h????????????ê?·??×ò??êò????×ê×ē×??×ò?×ò???ò?·ê??????????·ē??·???????????ò??ò·??ò×????ē???×?????êē???·????òē?ê×?×ē×ò??????ɑ??×???×ê?????n?a??ò???????ò????ê×?????×ē?·??ē×ò???·×?ò·×?????ē?ò?????ê×????·?·ê????ò??????ē×??êtechnical support, Xi'an High Voltage Apparatus Research Institute Co., Ltd. and FujianG×ò???G?·ê???Y????????ē??????·?êê?????ē×??ê?ê??ò·?????????ē×·]?×ò×ē×?-ē×??ē?????ê??ê?·?ê×?????????ê?ē×?ò????????~??ē?ê??ò·ê??????×ē·????????ê×·?-tions in motor and transformer protection systems, thereby enhancing supply chain???×ê×?ò·??ò??????ē×?ò?ê???ē?×ò??×ê×ē??/òē?×?ê?·?ê×??ē×?ò×ò×ē×?ē×???a×ò?????ê?·ē?×·???×ò????ò??òēê?????ê?????×?????êē???·????òē?ê×?×ē×ò?????????ò?·ê???????????ê×·?ē×?ò?ē??ē????ò?ē??ē????ê??·ê???????????ò·???ē?×·???·?×??×ò?ē?·?ò?ê??×-·?ê???×ē??×ē?×òē??ò?ē×?ò?ê·??òē?????ē??ò???×?×ò?????ò·????ò???·ē??×ò?×ò???-try upgrades through import substitution.

LOCALIZED INDEPENDENT DEVELOPMENT OF SAFETY-CLASS HIGH-VOLTAGECURRENT-LIMITING FUSES FOR NUCLEAR POWER APPLICATIONS

INTELLECTUAL PROPERTY MANAGEMENT SYSTEM CERTIFICATION &KEY PATENTS OF SINOFUSE ELECTRIC OVERSEAS BUSINESS EXPANSION STRATEGY OF SINOFUSE ELECTRIC

OVERSEAS TRADEMARK REGISTRATION AND AUTHORIZATION

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

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a×ò?????ê?·ē?×·?ē?×·ēê????????ē??????ē×·?ò?×òē??ò?ē×?ò?ê?????·ē???ê×ē??????ē?????ê?ē×?ò??×ò·ê??×ò?}????????????U???÷???}??ń?????ń?×????÷???? and ??????????????U???÷???}??ń?????ń?×????÷????. We maintain a Quality Management Com-?×ēē????ò???·?\??ê×ē?]???×ò?E?ò?????òē]???ê?ē×?ò???ò?·??ē??×?????ê×ē?·?×ē??×??????·??????·ē??????·ē??ò?????×?òto minimize risks and ensure safe, reliable offerings.

h??????ò??????ē??ê×?????·???????ò?×?????ê×ē???ò?????òē???ē????ē??ò?ē??ò×ò??????·ēê×??·?·ê????ê×ē?·?òē??êē??ò??????ê×??ê??????·ē??ê×???????×ò?ē???????ē×ò????×????êê?????ē×?ò?ê?????·ē×?ò???????ē??????ò??????·?×????????/aMǎ????????·??ē×?·?ē×?ò??×ē?·?òē×ò???????ê×ē????ē??????·ē×??ò????Quality Management System

During the product R&D phase, the Companyimplements rigorous quality control by conducting?ē?ò????×???×ò???·ē×?ò??ò????×?·?ē×?ò?against quality benchmarks prior to each release????×?ò???×ê????ē???ē×·?êê?·ê???×??×ò??????×ò???ò?·?òē??êê???ò??×ò??êê×??òē×???????·ē?ē????????ò×?????ē?????ē??ò????·???????ò-?×??????ê?ē×?ò?·???ê???òē????×ò????ē????ēcause analysis (RCA).During the product operation phase, the Companystrictly implements business continuity manage-ment (BCM), incorporating multiple safeguards in??ē????ē?????ò??????????ēē?????ē????ê???ê????êē×?ò???·ê??ē?????ê????òē??????·?×?????ē??ē??ò??????ē????×ê??×ê×ē????×ê???×êē?×ò????×·???·?????·????×ê×ē×????×òē?×ò?????êê???ē???ē??×ê×ē??Mòē?????????????òē?????·×?òē????????????·???ò???ē??ê?×ò???-?ē??·ē????ò?×??ò??òē???????×???ē??????òē????????×ê????·?????????ē??ò?ê??·ē?????òē×ò-??ò·???·??????ê?ò????×ò?ê?·??????????ò·×??such as power outages, communication failures,?ò?????????ê??ò·ē×?ò??

Lifecycle ProductQuality Control

Valid domesticpatents held

Y?ē?òē??ê??×ò????

Training sessions on intellectualproperty protection during thereporting period

????The Company conducts regular specialized training programs to enhance employeeawareness of intellectual property protection.

OrganizingExchanging

·ē×?×ē×??

andTraining Sessions

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??ê?·??×??×????ē?ò·??ò×òē?êê?·ē??ê??????ē???ò?????òē??ē?×·ēê?·???ê??×ē???ê???òēê????ò?????ê?ē×?ò???ò?·?òē×ò????ê?×?????????×òē?êê?·ē??ê??????ē???ò?????òē???ē???/ò??????????×????ò?????ê???òē????ê?ē????·???òē?ē?????ē??????ē??/òē?ê-???????}??ń???[??????????????, which was implemented within 2024.a×ò?????ê?·ē?×··?ò??·ē?·???????ò?×??/Yê×ē???·?ē??×ò×ò?????????ē???????ê?ò???ɑ?òê×ò?????×ò??????ê×ē×?????????????òò?ê?ò???ê???òē?ē?????ê??????×?×ò?ē??ò??ò·?/Yprotection awareness across management tiers and operational teams, necessitating×ò??×ò????òē?????òē×?ò???ē?·?ê??ò???ē?òē???ê×·?ē×?ò???·?????????×ò?]??ò??????·-tion cycles.h??????ò?×ò·?òē×?×??????ê????????×·?×ò??òē×?ò?ē??????×ò?×?×???ê??ò?ē?????????in strict compliance with }?????U???÷?????ò?×ē?×??ê???òē×ò???ê?????ê????????????????·ē×??ê????ē?·ēē??????ò???ê??×ē×??ē??×??ē??ò?×òē????ē???????òē??×ò??×ò????òē??and mitigated losses are recognized and rewarded accordingly.

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Systems

andProcesses

Enhancing?ò???òē×?ê×ē?

Awareness

Strengthening

Rewards

and

?êē×??ē×?ò

Sinofuse Electric's Intellectual Property Protection Initiatives

Early-Stage Quality Control Planning, Product Quality Control PlanningEarly-Stage Process Capability Monitoring & Analysis?òē×ò????/????????òē?a???E???Y????·ē×?ò

Execution of Quality PlanningQuality monitoring and analysis\??ê×ē?/????????òē???·ē×??ò???~??×?·?ē×?ò/ò·??×ò?×ò???·ē×?ò?×ò????·???×ò???·ē×?ò????ē?ê??ē?×?·?×ò???·ē×?òFinished product inspection, shipment inspectionY????·ēa???ē???ē×?·?ē×?òHandling of Customer Complaints

Early-stage

QualityManagement

Process Quality

Management

Sinofuse Electric Product Quality Control Process

\??ê×ē???òē?×·a???×·??Y????·ē??×?ò

SINOFUSE ELECTRIC ISO 9001:2015CERTIFICATION

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

????KEYPERFORMANCE

Alignment of Customer Quality RequirementsTransmission and follow-up of customer quality informationCustomer document requirements

055056

CustomerQualityManagement

h??????ò???×òē?×ò?·???????ò?×???????·ē×ò???·ē×?ò·????×ê×ē×??ē?·?ò??·ē?????òē×?????ê×ē?????????òē??·?????êêoperational stages, ensuring product quality compliance. Concurrently, it has established and rigorously enforced systems suchas the }??????????????(???????@???????}???????????????}????????÷??]??????÷??????}??????, reinforcing process controlsē??????×ò?ē×ē?ē×?ò?ê??·??ò×???ē????ē?×ò·?òē×ò???????ê×ē?×????????òē?/ò?????ē??????ò??·?×????????????·?òē?????×òē×ò·?????×ò?????·ē???ê×?·?ē×?ò??ē??ò?????????·?òē?????×òē????·ē×?ò×ò??ē??ò??ē?·???????ē???????×ē????????ê×ē????ê?ē???????·ē??·?êê?ɑ??ē???ê?òē????ò?×ò??ê?òē????ē??????-out the year.

G?ò?·?ò????×ò?Y????·ēh??·???×ê×ē??ò?]?·?êê

a×ò?????ê?·ē?×·???????ē?ē????×ò·×?ê????·??ē?????·?òē?×·???×??×ò?·??ē???????????ē?????ê?????ò?·?òē×ò????ê??ē?×?×ò?to enhance customer satisfaction. To enhance customer satisfaction and product quality, all business units conduct regular cus-ē??????ē×???·ē×?ò????????ò??ò??×ò??×?×ē?ē????????êē×?ê?·??òò?ê????ē???×ò?×ò????ē???????·??ò?????·ē??????×·????ò?experiences to inform R&D and quality management teams in product optimization and upgrades.

Customer Satisfaction Tracking

Sinofuse Electric takes a?·×?òē×?·?ò??×??????approach to responsiblemarketing, strictly adheringē???ê???òēê????ò?????ê?-tions, including the ??????????U???÷???}??ń?????ń?×????÷???? and Product QualityLaw of the People's Republicof China. We are committedto responsible sales andmarketing promotions,????×?×ò??··???ē??ò?·??-?????ò?×??×ò?????ē×?ò×ò?ê???ê?????ē????ê????òē?customer sales, and productlabeling management. In2024, Sinofuse Electricrecorded zero marketing·???ê×?ò·??×?ê?ē×?ò??

h??????ò?·???????ò?×??ê?????ò?ē??ē??×ē?·?ēē×ò??????ē?·?ò?ê??×·?ê·????×ê×ē×???ò??????·ē?????×·???ê?ē×?ò??ē×ò???ē???ê???×ò?ē??????×???'????-ny Munich Expo and IZB Wolfsburg. At IZB Wolfsburg, Sinofuse Electric show-·?????????ē???????·?×?????òē?×ò??ē???ē×???ê?·ē??ò×·??ê??ò·?×ò?·??ē??-×?????ê?ē×?ò?ē??ē?ò??ò·?ē??????ē??ò??ē??×ê×ē??????×·ê??ê?·ē?×·?ê???ē????The booth attracted attention from key customers, establishing connections withglobal customers.

ResponsibleMarketing

Sinofuse Electric recognizes that listening to customer feedback is critical for continuous????×·?×????????òē?????ē???ē×·?êê?·?êê?·ē????ê??ē???ò??·ē?ò·??ē??????????·??ē???ē×ò???·?×ò??ē?????ê???ê???????·????????×·???ē×?×??ē×?ò?ò?×òò???ē×?ò???·ē×??ê?·?êê?·ē·??ē??????????·?ē??????????ê??????????????×·???ēê×ò?????·×?ê???×??and other channels to gain real-time insights into customer needs and expectations. This?êê?????ē???×·?ê?×??òē×???ò?????×·?????ē·??×ò???ò??????ē????ē??ē??×?????×????????òē?

Customer Service System

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We maintain a dedicated hotline for customer inquiries and feedback. Customers can call us?ē?ò?ē×??ē?×ò??×????????×????????ē×?ò??Hotline Support

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??·ē×??ê???ò×ē????·×?ê???×?????ê????òē??ò?ê????????×?×ē?ê?ê?ē?????ē??ò??ò·?stakeholder engagement through transparent communication channels. Customers can??êê????????·×?ê??·×?ê???×??··??òē?ē??··??????ê?ē×??·??????ē?????ē???ò?????×·?×ò?????ē×?ò???×ê??ē×ê×?×ò?ē?????×?×ē?ê?ò??????òē·??òò?ê?ē?????×????ê???ê??ē?????ê?-er feedback.?·?ò??·ē???×??×··??ē??????ē×???·ē×?ò???????ē????ē???ē×·?êê???ē????ē?????ê???????-??·????ē?????·?ò????×????ê???ê??ē?????ê?????????·???·???ê?ē×ò??ē??·ē????????-tionnaires, enabling us to systematically capture customer insights.??ē?????·?ò?··???·???????ò?×??·??????ē??×?·ê??????×ò·ê??×ò?????×·??????×ò?????ê×-·×????ò?·?òē?·ē×ò?????ē×?òē????????????·×?ê????×ē??

Social Media

Questionnaire

Online Platform

Sinofuse Electric Customer Service Channels

a×ò?????ê?·ē?×·????ê???·??ē?????·?òē?×·??×ê?????????ê×???×ò?????×??????ê×ē?????-?·ē??×ē??????ò?×??????×·?ē????ē??·?êê?????ē×????··????h??????ò??????ē??ê×??????????ē·??ē????·????ò×·?ē×?ò?ò?????×·??????ò????·??ò×????ò??ò·×ò?·??ē????×òē???·ē×?ò???????????×ò?·??ē?????×??ē???ò?·???????ò?×??ê?×?????×ò?·??ē????satisfaction.

Customer Service Enhancement

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

SINOFUSE ELECTRIC PARTICIPATED IN THE MUNICHTRADE FAIR IN EUROPE AND THE WOLFSBURG AUTOMOTIVESUPPLY CHAIN EXHIBITION IN GERMANY.

ê×?ò×ò??×ē?a??ē?×ò??ê????ê????òē'??ê?

Responsible Supply ChainIndustry Collaboration & Shared Growtha?·×?ê?ê?????ò?]???ê]??×ē?ê×??ē×?ò

Partnerships &Social Responsibility

We are committed to fairness, transparency, and impartiality in???????ê×????ò?????òē?????ê?×ò??ē?×·ē·?òē??ê??ē??????ē?????????ò?????×ò??ò???ê?·ē×?òē????ê??ē×?ò???ensure supplier compliance and build a responsible, sustainable????ê?·??×ò?ēē??????ē×???ē??????ò??·ē×??ê?×òē?-grates ESG principles to enhance green and compliant supply·??×ò??ò?????òē???×?×ò???????????ē??×ē?×òē??×ò???ē???Philanthropy is a core part of Sinofuse Electric's corporate·?êē?????×ê?·?ò?×?ē?òēê???ê×???×ò????ê×ē??????·ē??ò?????×·???ē??????ò?×????×·?ē??ē???????×ò????×ē×????·×?êimpact, fostering a compassionate and harmonious society, andexpressing care and warmth through meaningful actions.

As of the end of 2024, the total number of Company suppliersreached ???.In 2024, all our suppliers signed the integrity clause.

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059060

Risk TypeMonitoring MethodsCountermeasures

·???????ò?×???????×??ē???ē????ò×ē??????·?????òē?·ē×?×ē×??throughout their lifecycle, emphasizing compliance and impartiality. Regu-ê??×òē??ò?ê???×ē????ê??ē????·?????òē???·??????·?ē×?ò?·??ē??ò???-??òē????·ē×??ò?????ò?????ê×???????ò?ò·???×ē?·????·ē×???·ē×?ò??????ēê?×??ê???òē?????×??òē×??????·×?ò·×???h??????ò?×?·???×ēē??ē???×ê?×ò????×??ē??ò?????òē??ò????·×?òē???-plier management system. To support our supply chain security strategy,????????ē??ê×????????×·?ē??????ê?·??×ò??ò?????òē????ò×??ē×?ò?ê?ē??·ē?????ò???×ò?·ê?????ê???ò??????ò?×?×ê×ē×?????×ò?ê?·?ē?????·ē×??ê?carry out related functions.

Supply ChainGovernance

???·ē×????ò×ē??×ò??ò???ò?????òē??????ê?·??×ò?×??????????òē×?êē??ò???×ò????×ò???·?òē×ò?×ē??????ê?ē???·???ê×?ò·???ò????ē?·ē×ò?ē??????ò???????ē?ē×?ò??êê??×ê???????ē×ò????ē?×ò??ê?????ê????òē?a×ò?????ê?·ē?×·×???×?????ē????ê×??ē??ē·???????ò?×??????ê?·??×ò?×????ò?????òē?êê??????ē?????ê?×??òē×?·?ē×?ò?ò?????????òē????ē?òē×?ê?×?????×??ê???òē×ò?????·ē×???ò??????ò?×??????????????ē??ò?ē??òē?????×ê×?ò·??ò???×ê×ē??????????ê?·??×ò?h?×???????·???ê???????????ē?????ê×ē???????????·ē??ò?????×·??????ē?·ēē???ò?×??ò??òē?ò?????ò?×??ē???ò?????ê?ē???×????ē?ē?ò??????????×ò????ē?×·??ò?·??????ē??????ò?ò·??

a???ê???×ò]×??/??òē×?·?ē×?ò?ò????????òēh??????ò?×?·???×ēē??ē???×ê?×ò?????ē?×ò??ê?????ê?·??×ò????×??×ē×?????·?????òēò?????ò??ò????ē×??ê???ê?êê-??òē????????????òē????×ê??·ē×??ê??ò·?????×ò?????ê×???ē?×??????ē??×????ē?×ò??×ê×ē????·ē×·????×??ê???òē?ò??ē???ò??????ò?ò·??·????????ê×???ò?????×ò?????·?????òē?????????ò·????ê??ē×?ò??ò?·????×ê×ē?????ê????òē???·???-es, systematically integrating ESG risk considerations.h??ò????????ê?·??×ò???ē?×ò??×ê×ē??ò?????·??ò?ò·×?ê?ò?a'?×????ē??????ò??????ē??ê×??????×??????????ê×????ò-?????òē?ē??·ē?????????ē?????·???????ò?×????ò?????òē???ē???

Responsible Supply Chain

Suppliers

Suppliers withinē??????×ò·?

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

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Risks Related toSupplier Quality

1.Y??×??×·??ò×ē??×ò???????ê×?????ê??-

tions

2.?ē??ê×?????ê?ē×??ē?×?????????ê??ē×?ò

mechanism

1.,a·?ò?×ē×?ò?????··??????????ê

2.Strict control and inspection of

????ê×???????·ē??????×·????ê×ē?

1.Monitor the signing rate of supplier green

×ò×ē×?ē×??

2.Track carbon emissions and material

??·?·ê×ò?×????????òē?

1.a?ê?·ē?·????×?ò?ê??????·ē??????×·??

2.Reduce toxic material use and waste

generationRisks Related to

ò?×??ò??òēand Climate

Change

1.?ē??ê×???ò?×??????M,a??ò?????òē

system

2.E?ò×ē??????ê×??/aM?????·??ē×?·?ē×?ò

rate

1.Create a safe and healthy working

?ò?×??ò??òē

2.Conduct occupational health and

safety training and awareness

campaignsRisks Related to

Occupational

Health And

Safety

1.?ò??·ē????ê??????????ò×òē???×ē?

culture training and learning

2.Regularly notify the latest training

requirements

1.Foster an transparent and upright

????ê??????ò??ò?×??ò??òē

2.Strengthen communication and

????×·????ê×ē?Risks Related to'????ò?ò·??Business Ethics

1.Conduct regular supplier questionnaires

?ò???ê???????·?

2.Require suppliers to regularly report

·?ò?×·ē?×ò???ê?×???

1.?ē??ê×??·???????ò?×??·?ò?×·ē

mineral management policies

2.??×?·?ò?×·ē?×ò???ê?×???×òē??

supply chainRisks Related to?ò?×·ēMinerals

Supply Chain ESG Responsibilities

061062

h??????ò??ê?·????ē??ò???????×??òē?????ē?×ò??ê?????ê????òē?ò?a'ɑò?×??ò??òē?ê?a?·×?ê??ò?'????ò?ò·?????·-ē×·????×ē?????ê×???????????ē??ê×????·ê???×òē??ò?ê?ē?ò?????????ò?×??ò??òē?ê???ē?·ē×?ò???·×?ê?????ò?×?×ê×ē???ò????×-ness ethics as part of our supplier onboarding process. These standards are embedded throughout all key stages of supplier??ò?????òē??ò???·?ò??·ē????ê?????ê??ē×?ò?ē??ò????·?òē×ò???·???ê×?ò·??ò?ē?????·ē×??ê??×ē×??ē??×????

h??????ò?×????×·?ē??ē?·?òē×ò????ê??ò??ò·×ò?×ē?????ê?·??×ò???ē????×òē????ē×ò???ē???ē×?òē?????ē???·×?ò·??ò??··???·???×ê???????ē×ò????ē?×ò??ê?????ê????òē?h?×??????ē×ò·ê??????ē???ē??????ê×?????ê??ē×?ò?????ê?ē×??×ò??òē???tracking, and optimized logistics routing, all designed to reduce waste, cut costs, and increase supply chain transparency and?????ò?×??ò??????ê×???×ò???ē??ò?×??ò??òē?ê?ò??·?ò??×·??ò??ē??

%?êê??·ê?E?ò?????òē??a???ê×???

We adhere to international labor standards, including the ];??????}?????ń???????????????@??????????c($;?????????÷??[????????????(????ń?????, the CUc??ń?????$???????????÷}?????ń?????????????[????????????(????ń?????????????}?????, and SA8000,?ê?ò??×???????ē×·????ê?ē×?ò???·???ò?×??ò??òē?êY??ē?·ē×?ò?????ē??Y???ê???]????ê×·???×ò??ò?ē???????òG??-ē??ê×ē??ò?????òY???×ò???ē??ē????????×ò??????????×êê×ò·????×ò?ê?×òē????ē?????ò???·?????òē??ò?×??ò??òē?ê???ē?·-ē×?ò???êê?ē×?ò·?òē??ê??ò??··???ē×?ò?ê????ē?×òē???ē?ò??????ê×???ò?????×ò??ò??ò??×ò?????ê×????ò?????òē??×?×ò?priority to suppliers with established EHS management systems.

Supplier Integrity and ComplianceThe Company is committed to upholding integrity and compliance by signingC????????????????? and ?ńń???????????ń????×?????????????×??????????????U??????. These reinforce our dedication to business ethics and anti-corruptionpractices, ensuring honesty and transparency in all transactions. We enforcestrict internal procurement controls to reduce corruption risks, ensuringfairness and compliance throughout the procurement process. Together,ē????????????·???ē??ē??ò?????òē????ê?·??×ò?ò?×??ò??òēē??ē???ē???healthy, ethical partnerships with our suppliers.

????h??????ò???×??×ē×?????ê?·ē×?ò??????×?ē×ò?????ê×??×ò??òē??×????????ò?????ē×?ò?ê????×????òē??ò?ē?·?ò×·?ê???·×?·?ē×?ò???ò???×ò?ò???????ē?????·??????ê×????òê?when existing resources are inadequate. Candidates undergo preliminary screening followed????·???òē???×?????ò??×ē????×ē???ò?ē?·?ò×·?ê???ê×ē????ê??ē×?ò??

SupplierSelection

?ò??×·??ò?????òē×?×??ê???òē??ē???????òò??ê???ê??ē×?ò??????ò???×ò?ò?????ê×-???????ê×????a???ê×?????ê×?·?ē×?ò???×??????????ò×??????????·ē×??????×?×??×?????×·????×??ē??????????????ê×??ê×?ē??????ò·???????ò?×?????ê??ē×?ò??ē·???????×???????audit reports, performance metrics, and compliance assessments.

Based on supplier performance assessment outcomes, the Company conducts periodic tiered???ê??ē×?ò??ò?×??ê???òē???ò??×·????ê×????ò?????òēē?×ò·?òē×?×????·?êê?ò·???ê×?×-ò?ē??ò???????????ò·???ò???×??·?òē×ò????×????????òē?×ò?????·ē?ò?????×·????ê×ē??

Dynamic TieringandManagement of

Suppliers

a???ê×??????????×???ē?·?ò??·ē×ò???·ē×?ò??ò??ê×??????????·ē??ò?????×??·?ò????×ē?·??ē×?·?ē×?ò??·???òē???×ē???×??ò?ē×?·?ē×?ò??ê×??ē???????ò????×?·?ē×?ò??G???·??ò?-??ò?·???×ē?ē?????×??×?ò??·???????ò?×????·???òē?ē×?ò???×ê????ê?ò???????ê?×òē?????-ē×?ò??????ê×ē??ò???ê×??ē?×??????????ê??ē×?ò???×????ê×?·?ē×?ò???·???????

Supplier Product

QualityManagement

SupplierPerformance]??×???ò?Reassessment

100%

Signing rate of supplierintegrity clause

ò?×??ò??òē?ê]???ê?ē×?ò???ê×?ò·?Waste Management & Circular EconomyEnergy Consumption & Climate Change

Hazardous Chemicals Management

a???ê×??ò?×??ò??òē?ê

ManagementSupplier CSR Stewardship

Supplier Code of Ethics

Anti-corruption & Bribery

Y????òē×?òData Protection Commitments

Fair Competition Practices

Child & Forced Labor Prohibi-

tionOccupational Health & Safety

Freedom of Association &

?êê?·ē×??????×ò×ò?Equal Opportunity Employment

ò?×??ò??òē?êProtection

Notes toSupply ChainESGRespon-sibility

Supply ChainManagement

Labor Rights

Business Ethics

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

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?ò?×·ēE×ò???ê?

063064

'?×?????ē????×ò·×?ê???×ò???ē????×??????ò·???òē??????ē????ē??êê???ò??·×?ê???ēò????×???×ē??ē?????ê?????·????ē????ê??·??×ò?h??????·?êê?????ē×????????·?????×ò??ē?·?ò?ê?????·??ò?????ò??????ē×òē?êê×??ò·??×????×ò?ē×?ò?????×??·?êê?·ē×??×òò???ē×?ò?ò????ē?×ò??ê?????ē????ē???òē×??×ò???ē???·????ē???

Industry Collaboration & Shared Growth

?a×ò?????ê?·ē?×··?òē×ò???ē????????????×ò????ê?·???×ēē??ē??????·×?ê?????ò?×?×ê×ē×?????·ē×??ê??ò????×ò???ê×·??ê????×ò×ē×?ē×????ò?????ê???×ē?ê×??ē×?ò?????ē???ē?×?×ò?ē?????????×ē×??×???·ē?ò???ê???×ê????ēē???????×ò·ê??×????·×?ē??Social Welfare and Rural RevitalizationSinofuse Electric does not currently use any 3TG minerals in its produc-tion processes. In line with our commitment to responsible sourcing,???ē?×·ēê?????×?×ēē????????×ò???ê?????·??????·?ò?×·ē?????·ē??areas. Suppliers are required to ensure that their products do not con-ē?×ò?×ò???ê????·??????·?ò?×·ē??ò????ē????ē??ē?×?ê?ē?????-ny policies.We are fully committed to complying with the c($$??$????????;????????÷????ń????×???ńń????????÷[???????÷???????????????????@????????????????êê??ē????ê???òē????×?×?ò???ē??$????:??????????????÷????????????? }??????????? regarding the sourcing of3TG minerals.

XI'AN SINOFUSE ELECTRIC WINTER CHARITY EVENT

'?×?????ē????×ò·×?ê???×ò???ē????×??????ò·???òē??????ē????ē??êê???ò??·×?ê???ēò????×???×ē??ē?????ê?????·????ē????ê??·??×ò?h??????·?êê?????ē×????????·?????×ò??ē?·?ò?ê?????·??ò?????ò??????ē×òē?êê×??ò·??×????×ò?ē×?ò?????×??·?êê?·ē×??×òò???ē×?ò?ò????ē?×ò??ê?????ē????ē???òē×??×ò???ē???·????ē???

Supplier Training

h??????ò??·ē×??ê???ê?êê?×ē?·??????ē???·×?ê?????ò?×?×ê×ē?ē???????ò??????òē×ò??·×?ê????×·???ò???×ê?òē????×·?·ē×?×ē×????×?×ò?ē?·?òē?×??ē?ē???·×?ē??ò??????ē?·????ò×ē????×??ò???ē?×ò??ê?????ê????òē?ē?????????ê×?×ò??????ò×???·?????????-?×?ò??ē???òē???òē????×???ò???·×?ē??/ò?????ē??????ò?????ò×????ò????ē×·×??ē??×ò???×?????ê?òē????·ē×?×ē×??×ò×??ò?totaling 16 hours.

On December 7, 2024, led by the Company's Party branch and labor union in partnership with the Green Leaf Charity?òē??????×?×ē???ê???ê????×??òē?×òò??????ò×?????ē??????????ò????×ê×???????ē???×òE??×??×?ò~×êê????;×??×?ò??ò?Town, Lantian County, bringing warmth and comfort during the winter season.

%???ê???ê?×ò?×?×???ê??ò??ê?ē??×·???????ê×??ē?????ê?????ē????ò???ê?òē??????????ē??ē????ē???ê×???????òē×?ê??×??·ēê?ē?ē??×?????????×ò?×ò?·?????ē?ò?·????n??ò???×?×ò??ēē??×??????ē?·?×êê????×??ò·???ē??ē????????ê?·??·???×ò?ò??·??????ò?????êē??ò?ò?????ē?????ē??êê?????×?×ò?ē?×·???×êē?ē??ò????ē????ē?????????ò?well-supported throughout the cold weather.

Public Welfare and Volunteer Services

In 2024, the Company strictly adhered to contractual terms with SMEs (Small and Medium-sized Enterprises), ensuring timely?????òē???êê·?òē??·ē??êê???ê×??ē???????ê????????×ò·???×ēē??ē????ē??×ò?·?êê?????ē×?????ēò????×???×ē?aE??????ê?×ò???·?ê?????ò?×?×ê×ē??ò??????òē????ē??ò?????òē???·ē×·??ē??????òē?????×ē??ê?ē???ē??òē???êê???×ò??????ē-ners.

Equal Treatment of SMEs

100%

a???ê×??????×ê×??ò·?·?????????ē??ò·?ò?×·ē?×ò???ê?×?????

Internal capability enhancement training forthe supply chain organized by the Company

sessions

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

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065066

h??????ò?×??·ē×??ê?×ò??ê???×ò????ê???×ē?ê×??ē×?ò?????ē????????ē×ò??·?ò??×·????ê????òē?ò?ē???????ò×??ē×?ò??ē?????×·?êē???ê??·ē??ē??????×òò???ē×?????·?ē×?ò?????????ò????×??????????ē????ē?????×?ē?ò·??h????×ò×ē×?ē×???????·ē×??-ê??ê×?ò·??????ē???????·???×ē?ē??ò??????????ê·????ò×ē×???·???ē×ò??·????×????????·?ē??ē×òē????ē??·??????ē???·×?ê?????ò?×?×ê×ē??×ē?ò?ē×?ò?ê????ê???×ē?ê×??ē×?ò?ē??ē??×???

Rural Revitalization

CARING FOR RURAL AREAS, SUPPORTING EDUCATIONMò/òē??ò?ē×?ò?ê?×ê???ò?????????a×ò?????ê?·ē?×·?????????×ē?·???×ē??òēē???·×?ê?????ò?×?×ê×ē??ò?·??×ò?for the future of the nation by reaching out to primary school students in remote mountainous areas. With the sup-port and coordination of the Xi'an Lüye Public Welfare Sunshine Education Assistance Department, on May 30th, the????ò??×?×ē??ē????×ò·???????a?ò???ò?×??h??ò?òē??êY?×????a·???ê×ò??òē×?ò??òē??????òē?×ò??????×?òē???ê×????×?ē??ò??×??ē???ē???òē???????ê??ê×????ēē??????ē×???·??????×?ò?ē?×ò?×?×???ê?????×??òa×ò?????ê?·ē?×·????ē????ò?ē????????ē?????ò???×ê?????òē×?ê?ē?·?×ê???ò????×?????·???ê?ê?·?ē??×ò????ê?-tionary base areas across western China. Philanthropy is a core part of Sinofuse Electric's corporate culture. While·?ò?×?ē?òēê???ê×???×ò????ê×ē??????·ē??ò?????×·???ē??????ò?×????×·?ē??ē???????×ò????×ē×????·×?ê×???·ē?fostering a compassionate and harmonious society, and expressing care and warmth through meaningful actions.a×ò?????ê?·ē?×·?×êê·?òē×ò??ē?·????×?ò???ê×·??ê????×ò×ē×?ē×????????ò?ē??ē×ò?·??????ē??????ò?×?×ê×ē??ò?·????×ò????????ē????×?×ē???×?×ò??????·???×ēē??ē???×ò?????ē???ēē???ê?êêa×ò?????ê?·ē?×·???×?×?ò???public good!

a×ò?????ê?·ē?×·?????ē???·?êē???????ê?òē???×????????òē????×ê?????????????×ò???·×?ē??ò???????×ò??×ò?ò???????·ē×??ê??ò·?????????ê?????ē????ē×·×??ē?×ò????×?ē??????ê×·??ê????×ò×ē×?ē×??????ēē×ò????·???×ē??òēē?·??????ē???·×?ê?????ò?×?×ê×ē?×òē??·ē×?ò?h??????ē??????ê?òē????????ē??ē??????ò??????ē????ē?????ê????????·×?ê?????ò????ò????×-·?ē×?ò???×ê????×ò?????×ē×??×???·ē?òê?·?ê·????ò×ē×???ò??????ē×ò???·×?ê?????ò??ò?????ê????òē?

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

Y???ê???òē?×·????òDevelopment

a×ò?????ê?·ē?×·??êê????????ê??·?òē????????ê????òē??×ê??-????????×·?ē??ē?·???ē×ò????×???×???????ò?×ò·ê??×??????-?ê?·??h????????????ēē?ê?òē????ê????òē???ē???ò???êē×-ple promotion pathways, we continually support employee????ē??ò?·?????????ò·???òē?h??????ò??????ē??ê×?????·???????ò?×???··???ē×?ò?ê???êē??ò?????ē??ē??·ē???ē??ē????×???,aē??×ò×ò??ò??×????ò?????òē????êê???ê?????ē?protect their physical and mental well-being and ensures work-?ê?·?????ē?????ē???×?×ò?????×??????ê×ē?????ē?×ò??ê?growth.

As of the end of 2024, the Company strictly prohibits any form ofemployment discrimination, forced labor, or child labor, with a

???? employment contract signing rate./ò?????ē??????ò??·?×??????êêē??×ò×ò?·?????????×ē??????employee participating in training programs. The total trainingtime reached ??????????????????×ò??? hours per employee.

By the end of 2024, all of the Company's production facilities hadobtained occupational health and safety management system·??ē×?·?ē×?ò?

During the year, the Company recorded zero major safetyincidents and no work-related fatalities.

????ê?·??··×??òēê×??×ê×ē?×ò????ò·?·????????ê?????·???????in 2024.

ê×?ò×ò??×ē?a??ē?×ò??ê????ê????òē'??ê?

??ê???????ê????òēHealth and Safety

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TopDecision-making

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The Company strictly adheres to all domestic and international laws prohibiting child labor andforced labor. We uphold the principles of fairness, justice, and respect for human dignity,????×?×ò??????????êē????ò?????????×ò??ò?×??ò??òē??·?ē????×·?êê?????·ē?ò???????·?×ê??????·??ê?????·?ò?×???×ò?ē?×??·????????ē×?ò?ê??×ò·×?ê??ò??????ê×?????ē×?????our Company.CommitmentStatement

??????×ò???·??×ē??òē?ē??????ò??×??????ê????×??????ê×·?òē???????·???òē?ē??ò?????êênew hires meet the legal working age. Recruiters are required to thoroughly check each appli-·?òē??×??òē×ē??ò??ò??ò??ê?ē?????×????ê×??????????????????·ē??ē????ò???????×êêò?ē???×??????ê?????????ē?????·ē×?????×?????·???×ò?ê?·??×???ê?????×ò?????ē×?ò×??×?·????????ē???×?×ò?????×êêē???×????×?ē??·ē×?ò???ē??ò?×ò·ê??×ò?ē???×ò?ē×?ò??employment, and pursue legal accountability where applicable.Recruitment

ProcessManagement

Employee Development Management structure

Commitment and Measures to Prohibit ChildLabor and Forced Labor

Equal and Diverse Hiring Strategy

a×ò?????ê?·ē?×·???????ē?ē????×ò·×?ê?????×????×ē?????×ē???ò?×ò·ê??×?ò??ē?×?×ò?ē?????×?????×ē??ê????ê????òē?????ē?-nities. The Company has put in place a R??????????[?????????????? that explicitly embraces and respects employees of allgenders, ages, races, religions, sexual orientations, physical abilities, and backgrounds throughout recruitment, training, promo-ē×?ò??ò??ē??????·??????h?×???ê×·?????·ē?ē??????ò??????×·?ē×?òē????ē??×ò????×??ò?×ò·ê??×???????ê?·??????????????ê????·?ò???·?ē??×???êê??ē?òē×?ê?ò?ē??×????ē??????ò?êê??ò????????×?ò?êê??a?ò×??ê???????×????·?ò?×?ē?òēê??×??-ê×??ē??ē??×????ē?ò·????×????×ē??ò?×ò·ê??×?ò???ē??????ò???????ē?×ò???ê×·???????ò?????ê??????ò??×ò?×ò???ē-ment in resources to support this commitment.??????ê????ē??ê×????????????ń????×?????[?????????????? that strictly prohibits all forms of discrimination, including butnot limited to discrimination based on gender, race, age, or religion. The Company has set up dedicated reporting channels to?ò·?????????ê?????ē????????×?ē????????×?ò·????×ēò????ò??×?·?×?×ò?ē????????×????ò?????·???????×?·?×?×ò?ē×?òare met with strict disciplinary measures, ranging from warnings and demotions to termination, while ensuring appropriate sup-???ē?ò?·????ò??ē×?ò???ē??????·ē??×ò?×?×???ê????×ē×?ò?êê??ē??????ò?????ê??ê?????ò×????òē×??×?·?×?×ò?ē×?òē??×ò×ò?ē??ò??ò·??êê???ê???????????ò????ò???ò?×ē×?×ē?ē??×?·?×?×ò?ē????????×???????ē??×ò????????×?·?×?×ò?ē×?ò?????ê?·?culture.

069070

Employee Development

M???????êê???ê????????ê????òē?ē??ē???×???ē??ē????????×??·ē????ò?ē??'?ò???êE?ò?????h??,???ò]?????·??????ē??òē???ē????×ò?ò×ē?????ò?×?ê???????????·???ò?????òē?????????ē?????·?ē×?ò?????×ò×ē×?ē×?????·???·????ò-??ē×?ò?ò???ò??ē????·??×ē??òē??ò????ê????ē??×ò×ò??

Employee Development Management structure

h????????êē×?·??òò?ê????????òē?×ò·ê??×ò??????????ē???×òē???×?????ò????òē×ē?ē×??????????ò·??ò?ê?ē×·????×??òē×???ò????ê??ē????ê??????ē??×ò×ò??????ê????òēò???????ê??????????ê×????ê?ò·?????×????òē???ò??????êê??ē×???·ē×?òê???ê???ò-·????òēê????·?ò??·ē???×??×·???×ē???????ò×??ē×?ò?ê·????ò×·?ē×?ò???·×?ò·??ò????ê????òē·???ê×?ò·?ē??????òē??????·ē×?????ē?·ē×?ò?????ê?????×??ē??

Employee Development Risk Management

??ê???????ê????òēaē??ē???

The Company's Board of Directors and General Manager are responsible for setting the?????êêē?ê?òē?ē??ē??????ē??ê×??×ò???·??×ē??òēē????ē??ò??????ē?×òê×ò??×ē?ē??????ò????òò??ê????ê????òē?ê?ò??ò????×ò???????ē?ò?????

DepartmentalResponsibilities

a???×ē?????ē??òē?ê?ē???ò???????ē??×ē???ē?×ê?????×ē×?ò????×????òē??×ò·ê??×ò??????ò?×?×ê×ē×???ò????ê×?·?ē×?ò??Participate in resume screening, and use professional expertise to identify candidateswho meet technical criteria.?ò??·ē×òē???×???ē????ê??ē?·?ò?×??ē????ē???ē????ê??·?ò?×???×ò???·ē???ê×??professional skills and teamwork.Y???×?????????·×?·ē??×ò×ò??ò???×??ò·?ē?ò???×????

?ē??·????????ē??òē?????·??×ē??òē??ò?????òē?×ē????ê?????ē?×ê???×?×ò??ê?ò?based on senior leadership's direction, clearly outlining the process and timeline foreach role.Maintains and expands recruitment channels by partnering with major job portals and?·ē×??ê????ē×·×??ē×ò?×ò·???????·??×ē??òē???òē??Y???×??????????×?ò?êē??×ò×ò??????·??×ē???ē??ò??ò·?ē??×???×êê??ò?×òē???×??×ò???×ê×-ties.Compiles recruitment data and regularly reports progress and results to senior manage-ment.???ê??????×??ò?·????ē×ē×??·????ò??ē×?ò?ò???ò??ē????ē?????ò??×ò??????êê·?ê·?ê?ē×?ò???×?ē?×??ē×?ò??ò???ò??ē????×ò×?ē??ē×?ò??ē??ê×?????ò?·?òē×ò????ê?×???????ē??????????ò·???ò?????òē???ē??????ēē×ò????ê??ē×?ò?ē?ò??????ò????·??????????ò×?×ò?????????ò·????×?????ò???ē???×ò???????·?ē???????ē???ê????????ê????òē?ò?×ò??????ê????????ē??òē??%??ē??????×ē×?????ê??????ê?ē×?ò??????????×ò?·???ê?×òē??ò?????ê?×ò?ê?????×???ē??????·ē×??ê??

HR Department

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

????Maintain thorough management of all employee personal records, ensuring key information—??·???????ò???ē??????ê????òē?×???êê???·???òē???]???ê??ê????×?????ê??????·????ē?·?ò???ē??×??··???·??ò?·???ê?ē?ò????Y????ēê?×ò???ē×??ē??ò?????ê???ò??×?·????ò-cies or inconsistencies to minimize the risk of child labor issues arising from inadequaterecord-keeping.

????????ê?????ē???????òē??ò?????×ò???????????ò???×???ē??ē×ò·ê??????òē????×????×êê?ē??×ò×ò???ò?ē??????×ê?×ò??·ē×?×ē×??ē???ê?ē?????×·?ê???ēēê?×òē?ē??????ò?·?êē????ò??????ò?×??ò??òē???·ē×??ê??????ē???E?òē????×??ē??×ò-×ò?????ê???????????×?ò·?????ê?????????×???ò???ò??ò???????ēē?ò??·???????????×ò???ē??×?????ē??ò???×?×ò????×-ē×????ē·?????

Conduct regular inspections of all company workplaces to ensure compliance with health andsafety standards and to eliminate any conditions that might suggest forced labor. This includesmonitoring reasonable workloads, ensuring working hours comply with legal requirements, andmaintaining safe and comfortable facilities. Establish dedicated reporting channels that?ò·?????????ê?????ē?·?ò???òē×?êê??????ē?ò??????·ē??·?????????·??ê??????????????×ò?·?ò?×ē×?ò??êê?????ē??×êê???????ēê?×ò???ē×??ē???ò???????????

EmployeeRecordsManagement

Workò?×??ò??òē

Monitoring

Include clear prohibitions against child labor and forced labor in contracts with suppliers and???ēò????????×?×ò??ē?×·ē·???ê×?ò·??×ē??êê??ê???òēê?????ò??·ē????ê?????×ē?ē???????ê???????·ē×·??ē????????ēē??????ê?·??×ò?ē??×ò?×????×?ē?·????·ē×???·ē×?ò?×ò·ê??×ò?·?ò-tract termination if necessary—to ensure full compliance.

Talent Retention:

Y???×???ò??×ò?ē??×ò×ò??òē??????×?×ē×?ò??·?×ê??ò????·??ê????ē???×??ê???ê?????ò????ò?????ê??ē?×·?ê?ē?ò????????ò??êê???ê??????ò????ē??ē??????ē???????????êê??ò????ē?ò??ē??????ò?????ê×·×???????×????òē???ò?ē??·?ò?????ò·?????ò??×?ê?ē×?ò??ò·???????·ē×?????ê????×ò??ê????òē×ò?????ē×ò??ò???×òē?×ò×ò??????????ê????òēpractices across the organization.

Supplier andPartnerManagement

Employee

Training

andEducation

???????ò?×??????ò??ē×?ò??ò??ē??ò???ê???????

ê×?ò???×ē?????ē??ē??×·?×?×?ò?ò????×ò????ē??·ē??????????????ê?????ò?·?òē×ò????ê?×????????·????ò??ē×?ò?ò?×ò·?òē×?????ē??ē??ē???ò???êē×?ê?·??òē?×????·???×ò×ò?????ē?ē????ò?ê?ò??ē???×ò·?òē×????×ē???ē?ē?ò?×?ê??ò?×òē?ò?×-?ê???????????·?ò?×?ē?òēê???ē×??ē????ê???????×ê??????×ò??????ē?·????ē×ē×??·????ò??ē×?ò?ò???ò??ē?????????×êē???×???ê???òē??ê????ē??·ē?????ò???ē??ê×?????·???????ò?×??·????ò??ē×?ò?ò???ò??ē????ē????×?????ē??a?ê???E?ò-?????òēa??ē???M??????????ò·????ê??ē×?ò???·???×?·?òē×ò????ê????ò??ē??ê×?ò×ò?×?×???ê·?òē?×??ē×?ò??×ē?????ò×??ē×?ò?ê???ê????×??ò??ē??????ò????òò??ê???×ò???????·ē×????ò??????ē??òē?ê????????ò·??h?×????ê?ē??·????ē???????ò???-??òē?ò????????×?ò?ê????ē?????×??????ê??????×ē?????ò???·?????????ê????òē?????ē?ò×ē×???

1,379Employees

100%

a×?ò?ê????·?òē??·ē???·?×????êê??·×?ê×ò????ò·???ò??ē??and enjoy housing fund contributions.

Employees

Number of maleemployees

Gender structureof employees (Persons)

Employee agestructure (Persons)

Employee educationstructure (Persons)

Number of femaleemployees

Number of employees???????ò??????Number of employeesunder 30 years old

Number of employeesaged 30-50

1037

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

Number of employeeswith associate degreeor belowNumber of employeeswith master's degree

Number ofEmployeeswith Bachelor'sDegreesNumber ofEmployeeswith DoctoralDegrees

2024 Annual Meeting & Awards Ceremony

EMPLOYEE CARE ACTIVITIESCompensation & Incentive Measures

??????ē??·????ò??ē×?ò???ē??ē??ē??????????ê???????????òē????ê??ē???·?òē?×?-ute, placing strong emphasis on recognizing high performers and those who make exceptional·?òē?×??ē×?ò?ē?·??ē????·ē×?ò????·×?ò·???×ò?????ê×ē?×????????òē???ò????????ò?×ò×ē×?ē×????h?×???????·??ò·??????????·???ò??ê??·???ē×?ò×ò?????×????·????ò??ē×?ò?×?ē?×??ē×?ò?ēē??????ē×???????×?????òē×?ē????ò??×ò·?òē×???????????ē??ò?ē??òē??ê×ò???ē???ò???ê???????ò×ò???ò?????ò?????????ò·????×?×ò????ē?×ò??ê???×??????ê×ē?growth.Short-Term/ò·?òē×???

?????ē???×ê???×ê?×ò?????×???ē?ê?ò??ē???×ò·?òē×?????ē????×??ê???òē×ò??ò???ê??-???ē?·???ò????×??ê?ò?/ò?????ē??ēē??·ē?ò???ē?×òē??ē?ê?òē???ēē??ê??????????????ò·??×ē?ê??ò???????ēē??????ò???????ē????×òē????·?????×ē?×ò·?òē×????h?×?·???ē????ò×????ē??·ē??????????ē?ē??????ò??ò????ê????????????ò??ē??ò??×???????ē??×ò???×ò??×ò?×ē??ē×?ò???×ò?×?×???ê????ê????òē?ò?·??????ē???··????Medium- toLong-Term/ò·?òē×???

%??òēê×ò???ê???????·ē×?×ē×??

×????×????ò??ē?a??ē??

?????×?????×·??ê???????ē?·ē×?ò???????ê?????×ò?··????ò·??×ē?ò?ē×?ò?ê?ò?ê?·?êê????ò?????ê?ē×?ò??×ò·ê??×ò??òò??êê??????×·?ê???????ē??ò×ē??ò???ē??ò×ē?ê??????????ē????-×ò?ê??????????????òēê??????ò???????ò???×ò?ē??ē???ê?????×??ē??????êê?????????????Statutory?ò??ē?

Additional protections like work injury insurance for rehired retirees and interns, further?ò??ò·×ò????·???????ò?×????ò??ē?????????Targeted?ò??ē?

êê???ò·??????×?ē??????ê??????ò??ē??×ò·ê??×ò?·????êê???ò·??ê×??·??ê×ò?????ē×ò??ò?housing subsidies, as well as in-kind perks such as labor protection gear and special holiday?×?ē????ē??????ò??ē%??ē×??ê?E×???ē??ò%??ē×??ê????ò??????ò??×ê???ò?????demonstrating our commitment to employee care.?òē??ò?ò????×ē?????êê????×?????·?????ē??ê?????×ē??×???ò????ê·??×ò????ē×???×ò?canteen that support employee well-being and foster a strong sense of community.??ê????·ē×?×ē×???????ē??òēē??????×ê?×ò???òò??êē??????ē·?nò×?????ê?ò??ē?

E×???ē??ò%??ē×??ê??òē??ò]×??ê???òē

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

100%Annual employeeē??×ò×ò?·?????????ē?

24,806Total hours of employeeē??×ò×ò???ê×?????

hours

?????????????ē??×ò×ò???·?×?????????ê????

hours

The Company has established systems and control procedures, including the ?????÷?????ń????×?????????? and ?÷???[????????????????}??????????ē?·ê???ê????ò?×ē????êē??ò?????ē???ò?????òē?ē??·ē????ò??????ò?×?×ê×ē×???h????????×??·ē?????ē?ē???????êê?··???ē×?ò?ê???êē??ò?????ē?ɑM,a??ē??ē??????×ê?ē????ò???ê??ò?????ò???ò?????òēē???????????ò?×-?ê????×ē?????ē?????×??ê???òē?ē×?ò??·??????ē??òē????ē×·?ê??ê?ē??'?ò???êM??·??×?ē??????×ē???ò??×ò????·×?·???êē??ò?????ē???ē×?????·???????ê??×ò??ò??ò???·×ò?????ē???ê×·×???????ò×?×ò?ē??×ò×ò?????×?ò??×??òē×??×ò??????????ò?·?ò-ē??êê×ò??×?????·??????ē??òē??????×?ò?ē?????ē?ē×??????ē????·???ē??ò??????êê·???ê×?ò·??×ē?????ē??ē?ò??????ò????ē?·ē???ê?????????êē??ò???êê???×ò??/ò???×ē×?ò?ē??,aē???×??????ò?×?ê????????ê??×ò??ò?×??ê???òē×ò???????ò·?response plans for production incidents, fostering a strong safety culture, and ensuring that employees work and grow in a safe?ò?×??ò??òē?

Health and Safety Management Structure

Occupational Health & Safety

Assessment and Promotion???????ē??ê×??????·×?òē×?·?ò??ē?ò????×????????ò?×ò????ē?????ē??×ò????ê·?????????ê????òēē??·????ò???????????×?ò?ê??ê???ò??ò??????ò????×?ê??ê????????òē??????ò?????ê??·??×ò?ò?????×ò?ê???ê??????·?òē?×??ē×?ò????×ē×?ò?????×?×???×òē????·?ē????×?????ò?????òē???ò·ē×?ò?ê???ê???ē?·?ò×·?ê??ò???×êê????ò·??????×ò??ē?ē?ê???????????×?ò?ê??ê???nò???????????ē×?ò??ò?????òē??ê×·??????ò·???òē×???????ò·ê???ê????ò??·?×ē??×??×ò·ê??×ò??ê×?×?×ê×ē?????×????òē???ò??ê??????ò·???????·????ē?ò·??ē?ò???????ò????????×?ò?ê??×êê??ē??????????ê?????·?ò???ē×·×??ē?×ò??ò?·??ē×?·?-ē×?ò?ē??×??ê×?×?×ê×ē????ē?????×?????ò???????????ē??,]?????ē??òē????????òē??????ò×???ò??×??ê???ê???×ē×?ò????·?ò??·ē?????????ē??òē??????ò???ê???òēê?????????×ê???ò×???ê???ê?ò????????????×??????ē??????ò???\??ê×?·?-tion Assessment Committee. Promotion criteria include factors such as educational background, area of study, years of experi-?ò·???ò???ê???òē·??ē×?·?ē×?ò??=ò??ê????????×????òē????ò??ē????ò??ē×?ò?ê?ò????·×?ê×???????????×ê?·????ē?ò·?expectations emphasize strong job performance. Professional skills should demonstrate cross-disciplinary expertise. Additional-ê?????ê?????????ò·???????ē??·ē×??ê??ò????×ò?ò??ê????????×ò??ò?·?ò?×?ē?òēê???ê×????ē??ò?????????ò·???ē·?????

Training and Development???×??×ē×???ē?ê?òē?ê?òò×ò????????×ò????ê?òò×ò????ò??????ē??ê×?????·???????ò?×?????êē×??×??ò?×?ò?êē?ê?òē????ê??-??òē???ē?????×·?ē??ē???×ê?×ò???ò???ò??ò·?????ē?ē?ò?×ò?ê???????ò??·?òē×ò?????????·????ê?·????ò???????×??ê???òē??ē??????????·?ē??????òò?ê·?êē×??ē×?ò?/òē??×òē????·ē×?ò?????????··?ê???ē?ò?????ê??????×òē????ē×?òthrough standardized onboarding guidance and a mentorship system; in the growth phase, we conduct specialized training and?ò??ò·?ē???ê???????·????×ê×ē×???×òē????ē??×ē?????????×??????ê???????×??ò??ē??ē??×·??ò?????òē?????×?ò·?ē?????????·?ē×??????????????????ò?×ò??????????????×òē???ē??×ê×ē??????????????ē?ē?????????????×òē??òē??ò?·???????ò·ē×?ò?ê?????ē?ē×?ò?ē??·?×????×????×???ē?ê?òē????ê????òē?/òē?????????ē???ē×·??????ē?ê?ē??????????????ē??ê×?????ē??????×??ò?×?ò?ê???ê×?·?ē×?ò???ē??ē??ē×òē????ē????????ò?????×ē×?ò??????ò?×?×ê×ē×????·???ē×ò????ê·???????ē???????ē???ò?????òē?ò?ē?·?ò×·?ê???????×?ò?ê??h?ê?òē????????òē??ò??ò×òē??ò?êē??×ò??ē???????ê??ê????????ē??ò???×??????ò×??ē×?ò?ê?×ē?ê×ē??h?×??ê?ò×?·???×????ēē??????ē??·????×ò?ē???ê×?ò??òē????ē??ē??×·??×??ò·??×ò?ē×ē?ē×?ò?ê?????????????????·?×ò???ē??òē???ò???×ò?ē??ēē??ē?ê?òē?×??ê×ò???????ē?ē??????ò??????×ò???????ē??ò?·?òē×ò????ê????ê?ē???·?×?????òē???ē??ē??×·???ê??

h??????ò????×??ê???òē???·???????ò?×??ē??×ò×ò????????ē??ē×ò·ê????ē?????????[???????????????[??????ńń???????[??????????????, C?????????????[??????????????, and ??????????[??????????????. This structure offers employees a wide??ò????ē??×ò×ò?????·????ò?????×ò????ò???×??????ò???ê??×êê?ē??×ò×ò???ò????·×?ê×??????????×?ò?ê????ê????òē?

Strategy Formulation

Jointly Responsible for Execution

Assume direct responsibility for OHS affairs, includingformulation and enforcement of safety protocols, organi-zation of safety training programs, and implementationof hazard inspections and risk mitigation measures

Board

ofDirectors

GeneralManager

andManagement

Team

'?ò???êE?ò????M??·?

Function

Marketing

Five MajorCategories

Techn-ology

SkillsManag-ement

????KEYPERFORMANCE

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

ProcessContentMethodology

5.03

ò?×??ò??òē?ê?ò?????ē?×ò???ē??òē×ò????

millionRMB

h??????ò???×??×ē×???ē??×??òē×?·?ē×?ò?ò??????ò?ò·????··???ē×?ò?ê????????ò??··???ē×?ò?ê?×????·ē??????×òē?×ò×ò???????ē?×????·??ò×ē×?òē?????????????ê???????êē??ò?????ē???????×??ê???òē??????ê?????òē×?ò??·??ò×??ē???ò????×???????·ē×??ê???·??????????ē??????òò?ê???????×????????ē??òē?·?ò??·ē?×??????????òē???????ò???·×?·???????·??????h??,aē???ē??ò·?ò??ê×??ē???ò???×??×ē×????×?ò×?·?òē????ē??×????ò?????ê???ē????ē??·?òē??ê????????ē??ò????????·ē×???×????ò?????òē?

/òē?????ē????ē???ē??????ò?·?ò??·ē???ē?????????????×??òē×?·?ē×?ò?ò?????????òē?ēē???????·ē×?ò?×ē?ē??ò???????????ò×ē??×ò???ē??·?????êê??????ē?????????????ê???êē????×??ê???òē??ê??×ò???·ē×?ò?????×???ò??ò?????ò?????×ē??·ē×?·?ē×?ò?????????????ē??/ò?ê×?ò??òē?×ē??????·ē????·×?·????×????òē??ē??????ò???????ò??×ē??????????????·???ò?????òē???ē???????ò×ò??ē?ò????×?????ò?????òē???·???????ò??????ē×?ò?ê???ē?·?ê????ē??ê×??×ò???ò??×·????ē???ò?????òē??·?×???????????????????·????ò?×??ê???òē×ò???ò×ē??×ò????ē?·?ê??×ē????×?ò?ē???··??òē??ê??????òò?ê?

Safety and Health Risk Management

PreliminaryPreparation

Establish Occupational Health Manage-ment Organization with Part-TimeManagers

Establish a Management Team???ê???]×??/??òē×?·?ē×?òYê?ò?×ē?ê???M???·ē×????a·????ò?h×??ê×ò?Plan FormulationConduct Occupational Health TrainingFor Managers and Employees

Training and Promotion

Field Inspection

andMonitoring

?ò??·ē?·???????ò?×???????ê?·?inspection to systematically identifylatent occupational risk factors.Contract a specialized testing institu-tions to conduct periodic assessmentsof occupational health hazard factors.

Field Monitoring

Field Inspection

Risk Assessment

Conduct categorization and exposureê???ê???ê??ē×?ò???··???ē×?ò?ê???êē?hazard factors.?ē???×ò??×??ê???ê????··???ē×?ò?êhealth hazard factors in accordancewith applicable national regulatorystandards.

Risk Rating Assessment

,?????ê???×?·?ē×?ò?ò????????

????ê???????òē

ResultAnalysis

andReporting

???????ò?×??ê??ò?ê?????ò×ē??×ò?data and assessment results

Y???????·???????ò?×???×????????-ment report on occupational diseasehazards

Report Preparation

Data Analysis

Continuous/????????òē

]???ê??ê????×??ē??·?òē??ê????·ē×??-ness for occupational health hazardfactorsContinuously monitor changes in occu-pational health hazard factors andadjust management measures accord-ingly

Dynamic Management

]???ê??]??×??M··???ē×?ò?ê,??êē??a???ē?]×??/??òē×?·?ē×?ò

SINOFUSE ELECTRIC OCCUPATIONAL HEALTH AND SAFETYMANAGEMENT SYSTEM CERTIFICATION

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

Risk Typea??·×?·]×???Sources / Examples

100%

The Company has also completedoccupational hazard assessments in theworkplace, ensuring full compliance withsafety standards. Occupational health????×ò?ē×?ò·?????????ē?

100%Organized specialized training duringOccupational Health Awareness Week,?×ē???ê???òē???ê????·?????????ē?

h??×ò×ò????·ē×??ò???is excellent

Physical Risks

NoiseVibrationHigh temperatureInadequate lightingM???ò×·??ê??òē?

From Production Equipment,

Machining, etc.Industrial Machinery

Operation

Curing ChamberSome Warehouses or Remote

Work Areas

Ethanol, ink, etc.

To strengthen and standardize workplace safety education while boosting employees' safety skills and awareness, the Compa-ny has established formal policies, including the ?÷???(????????????????????????????./ò?????ē??????ò???êê????ē?ò?òò??êē??×ò×ò????????·????×ò?????ē???ò?????òē???????ò·???×êê???··???ē×?ò?ê???êē???????????ē×ò????·????????ò???????×??·?òē??ê??h?×????????×ò??ê????êê???ê?????????òēê×ò?????????ò???×?????ò???ê???òē??ò?????òē?ē????ê×???h??×ò×ò?????×?ò???????ê?????ē??ê???×ē???ē????·?????×ò?\??ò?\?ē???×òē?×ò·?ò?×?ē?ò·??ò???ê???ò·??h???????ò??×ò?,a???·?ē×?ò?ē??????ò?·?òē×ò??êê???×???????ē??????ò????ò?×????????×???????òē×?ò???×ò???·×ò???ē??ò????ò??ē×?ò???????·ē×??????ē???ò?????òē?

Occupational Health & Safety Strategy

Safety Culture Development

h?????·ē×??ê??????òē?ò?·?òē??ê?··???ē×?ò?ê???êē??×???×òē???????ê?·??ò??ò???????ê????????ē??????????ē??ê×?????·???????ò?×???··???ē×?ò?ê???êē???ò?????òē???ē???Occupational Disease Prevention

a×ò?????ê?·ē?×·M··???ē×?ò?ê,??êē?]×??/??òē×?·?ē×?ò]???êē?

Training TopicTraining ParticipantsFrequencyTraining TimeCoverage

2024 Sinofuse Electric Safety Training Program (Partial)

SafetyManagement

EmergencyDrills

OccupationalHealth

Majorrisk ControlSafeoperatingProcedures

Chemical Risks

SafetyManagementTraining

Safety ManagementPersonnel andKey ResponsiblePersons

AnnualMarch

]?ê???òēSafetyManagementPersonnelEmergencyDrills

]?ê???òēY????òò?êQuarterly

E??·??;?ò??a??ē???????·?????

All Departmentsh?????????êa???ē?Education (for New

Employees)

New EmployeesPer batchOngoingNewly Hired EmployeesOccupational

HealthKnowledge

Training

Frontline EmployeesAnnualApril

Y????·ē×?ò??ò?ē??·ē×?ò

Positions

Specialized

Safety

Training

]?ê???òēY????òò?êAnnualJuneKey Positions

Safety Warning

Education

All EmployeesContinuous promotionMonthly RotationAll Employees

????KEYPERFORMANCE

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

Water and Power Outage

TabletopJuly 12, 2024'?ò???êE?ò????M??·?

081082

h??????ò????????ē?ē??????ē???ò?????òē??×ò·×?ê????a???ē?%×??ē?Y????òē×?ò?M?×?òē????·?òē?????ò??ò??ò·×ò?????ē??????ò????ò??ē??ò?ē??ò×ò?×ò·×??òē?????òē×?ò??h???????ò×???·????ò?????ò???????ò?×?×ê×ē×????ò????×??????ò????·??ò×????×ē?????ē??ê×??????????ē??????ò·????·?????ē??????ò?×??ò??òē?ê?ò?????ē?×ò·×??òē?ē????ē???ē×·?êê?×???????????òò?ê·????×ê×ē×??×ò?ò?×??ò??òē?ê?×???????òē×?ò???????ò·??????ò????ò?×ò·×??òē?×ē×??ē×?ò?

Emergency Management

ProjectMethod

Time

Department2024 Sinofuse Electric Emergency Drill

OccupationalHealth ProtectionTraining

/ò?×ē×ò???·ē???ē?the Company for health consultations

Fire?×???×êêJuly 30, 2024'?ò???êE?ò????M??·?Vehicle Failure orLogistics Abnormalities

TabletopJuly 15, 2024

Engineering &

ManufacturingMaterial Shortage or SupplyInterruption due to Quality Issues

Virus Infection

Cybersecurity

?×???×êê?×???×êê?×???×êê?×???×êê?×???×êê?×???×êê?×???×êê

System failureCyberattackData Loss

Mass Returns due to Quality Issues

Labor Shortage

a?????a?·??×ē??

MaintenancePenetration Testing &Vulnerability ScanningNatural Disasters

Tabletop

TabletopTabletop

July 17, 2024July 18, 2024July 18, 2024July 18, 2024July 18, 2024July 18, 2024July 18, 2024July 18, 2024July 15, 2024July 15, 2024

Procurement DepartmentIT DepartmentIT DepartmentIT DepartmentIT DepartmentIT DepartmentIT DepartmentIT DepartmentQuality Department

Human Resources

Department

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

SUMMARY OF SINOFUSE ELECTRIC FIRE EMERGENCY DRILL

h??ē??ò?ē??òē????????ò·??????ò????×êê????êê???ê??????×??òa×ò?????ê?·ē?×·????ē????ê???????????ò·?drill on the afternoon of July 31, 2024. The drill was jointly organized by the Company and the industrial park's proper-ē???ò?????òē???·???×ē?·ê?????ê?????×?ò???ò????ê???????×?ē????/ē×ò??ê?????êē×?ê???????ò·??????ò?????????×ò·ê??×ò????·?????·??×ē????·??ē×?ò????×·?ê?×??ê??×?ē×·???????ē??ò?·????ò×·?ē×?ò??Y??ē×·×??òē?×ò·ê??-ed all Company employees, industrial park staff, and supplier personnel.??????ē????×êê?ē??????ò?????ê???????ē?×ê??%×??(????????$???? Plan to ensure safety and practicality.??ê?????????????ê??ê???×?????ò???·??ē×?ò???ē???ò?????ē????·??ē×?ò?ē?????????ē×ò???ò??????ò????ē???×?ē??×??ò???ēē??????ē×?????????ē???ò?????òē?ē????ò?ē??????ò???,a???·×?ê×?ē?·????×ò?ē??detailed on-site arrangements to ensure each phase of the drill ran smoothly.??×ò?ē??????·×??????ê????????·??ē????×·?ê??ò??????ê??ê?ò????×?ò?ē?????ē??ē?ē?????×?ò????????ê???×òē?×ò?????ò??ē?ē???×??ê?ē??????????ē??òē???????ò×ē????ē?????·??ē×?ò×ò???êē×?????×ê?????ò?ê???????×?·?ò??·ē???ò??×ē????ê??ē×?ò??ò?????×?????×??ò·????×????????òē?h????????ē???ò?????ê??????×?-????ò????òē??×ò×ò??ò???ē?????????ē×ò??×??????ò????×·??????ē×ò?ē?·?ò×?????h?×???×êê??ê??????ê?????ê???òē???????????·??ē×?ò???·???????ò?×??????ē??×???ê?????·???ò?ē?????????×êê??

083084

Y??ê×·??òē?ɑ?×???×·??

Snowstorms,Torrential RainsEarthquakeNaturaldisasters

?×ē×·?ê??×???òē?aē?ē×?ò%?×ê???

Automation Equipment Failure

TabletopTabletopTabletopTabletopTabletop

High Temperature

TabletopTabletop

July 12, 2024July 16, 2024

July 12, 2024

July 19, 2024

Engineering &E?ò???·ē??×ò?×?×?×?òEngineering &E?ò???·ē??×ò?×?×?×?òJuly 19, 2024

?

?

General ManagerM??·??

?

General ManagerM??·?

Engineering &E?ò???·ē??×ò?×?×?×?ò

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

Infrastructure Damage, Such asFailures In Power Distribution Equip-ment (Transformers), Air Compressors,

etc.

Quantitative Performance Metrics Table

Report Appendices

Environmental Performance

085086

IndicatorUnit2024

ò?×??ò??òē?ê?%?×?ò?ê??ò?a???Y????·ē×?ò/ò???ē??òē10,000 yuan

503.00

1,341.85

97.53

1,244.3281,086.00

Ton Standard CoalTon Standard CoalTon Standard Coal

Cubic Meter

h?ē?ê·???????ò?×???ò????·?ò????ē×?ò

Direct energy consumptionIndirect energy consumption

Natural gas

10,124.67 189.764,404.29

195.18

4,209.1346,046.0046,046.0036,836.80

55.23

49.30

5.93

MWhElectricityMWhSolar energyTonnes CO

??×??ê?òēɑēM???Total greenhouse gas emissionsTonnes CO

??×??ê?òēɑēM???Scope 1 direct greenhouse gas emissionsTonnes CO

??×??ê?òēɑēM???Scope 2 energy indirect greenhouse gas emissions

TonsTotal Water WithdrawalTonsTotal water consumption

Cubic MeterTotal domestic wastewater discharge

TonsTotal waste generatedTonsTotal generation of non-hazardous wasteTonsTotal generation of hazardous waste

Social Performance

IndicatorUnit2024

Total number of employeesPersons1379

PersonsNumber of male employees

PersonsNumber of female employees

310PersonsNumber of employees under 30 years old1,037PersonsNumber of employees aged 30-5032PersonsG??????????ê?????????????????ê?416PersonsNumber of Employees with Bachelor's Degrees890PersonsNumber of employees with associate degree or below72PersonsNumber of employees with master's degree

PersonsNumber of Employees with Doctoral Degrees

100 %Labor contract signing rate

100 %Social insurance and housing fund

26Personsh?ē?êò??????????ê??????ò??ē??ò×ē????ē??ò×ē?ê????

100 %h??×ò×ò?·?????????????ê?????

162 Number of SessionsTotal employee training sessions24,806Hoursh?ē?ê??????????ê????ē??×ò×ò???ê×?????

18 Hours?????????????ē??×ò×ò???·?×?????????ê????

100%???×ò????×ò????ò·?·?????????ē?

100%Y?????ē×?ò???òē×ē×??·??ē×????×ē?/aM?????0CasesNumber of major safety incidents8Hours?????????????????ē????·?ē×?ò?ò?ē??×ò×ò???????ê????

100%a???ē?ē??×ò×ò?·?????????ē?0%Occupational disease incidence rate

100 %??ê????????×·?ê????×ò?ē×?ò·?????????ē?

PersonsNumber of work-related fatalities

0 %Product recall rate

100%Complaint handling rate

296PersonsNumber of R&D personnel

22 %Ratio of R&D personnel to total employees

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.

Report Index Table

Governance Performance

IndicatorUnit2024Number of board membersPersons9

h??ò?????????ê×???ē?òē???ē?×ò?????×ò?ē???????ē×ò????×??ItemsItemsItemsItemsSuppliersSuppliers%%Number of sessionsSuppliersHours

G???????×ò??òē×?ò??ē?òē????ê×??ē?·??????×ò???G???????×ò??òē×?ò??ē?òē???ê×·?ē×?ò??ê?????×ò?

the reporting periodG???????×ò??òē×?ò??ē?òē????òē??during the reporting periodTotal number of suppliersh?ē?êò???????????ê×????×ē?×òē??????×ò·?Y??·?????òē??????ē×?ò????×ò?????×ò·?????ê×???Proportion of suppliers signing integrity clausesG???????ē??×ò×ò?????×?ò????×?????×ò?internal supply chain capabilities

Number of independent directorsPersons3Proportion of independent directors%33.3Proportion of independent directors in the Audit Committee%66.7

Proportion of independent directors on the

Nominating Committee

%66.7Proportion of independent directors on the

Remuneration and Appraisal Committee

%

66.7

Proportion of female directors%

22.2

Number of Board of Directors meetingsNumber of Sessions5

G???????????????????ê????×????Number of Sessions21

Director attendance rate%100G???????a?????×???????????ē×ò??G???????a?????×???????????????ê????×????

Number of Sessions4Number of Sessions16

Number of suppliers undergoing responsiblemineral supply chain due diligence

~?ê?òē???????×·??????

a?????×????ēē?ò??ò·???ē?%

G???????×ò???ē??????ē×?ò??ò??????

on exchange platforms

Number of Sessions83Number of public announcements issuedPieces82

ò?×??ò??òē???ê?ē??

1. Addressing Climate ChangeClimate Action & Green Synergy

2. Pollutant Emissionsò?×??ò??òē?êE?ò?????òēa??ē??

3. Waste Disposalò?×??ò??òē?êE?ò?????òēa??ē????·????ē???ò?×??×????×ē??ò?????ē×?ò

·?ê??×·?ê?ò?????ē×?ò?×??×????×ē?Y??ē?·ē×?ò??ò?×??ò??òē?ê???ê×?ò·?E?ò?????òēò?×??ò??òē?êE?ò?????òēa??ē??

6. Energy Utilization

Resource Utilization and?ò?????ē×?ò

7. Water Resource Utilization

Resource Utilization and?ò?????ē×?ò

8. Circular Economy

Resource Utilization and?ò?????ē×?ò

Society-related

'????ò?ò·????sustainable????ê????òē

ǎ?]???ê]??×ē?ê×??ē×?ò

Social Welfare and Rural]??×ē?ê×??ē×?ò????òē?×??ē×?òē?????ò×ē?

Social Welfare and Rural]??×ē?ê×??ē×?ò???/òò???ē×?ò???×??òh?·?ò?ê??×·?ê/òò???ē×?ò???a·×?òē×?·?ò?h?·?ò?ê??×·?êē?×·?

Ethics in Science and Technology andAlgorithm Application Strategy

13. Supply Chain SecurityResponsible Supply Chain

14. Equal treatment of SMEsEqual treatment of SMEs???Y????·ē?ò?a???×·?a???ē??ò?\??ê×ē?

\??ê×ē???òē?×·a???×·??Product Design????ē?a?·??×ē??ò???ē????Y?×??·?Y??ē?·ē×?ò?ē?a?·??×ē??Y?×??·?Y??ē?·ē×?ò

17. EmployeesY???ê???òē?×·a????????ê????òē

18. Due Diligence

Due Diligence & StakeholderEngagement

19. Stakeholder Communication

Due Diligence & StakeholderEngagement

20. Anti-Commercial Bribery and Anti-CorruptionBusiness Ethics & Anti-Corruption

21. Anti-Unfair Competition

???????????(?????????÷?????????;?????????÷??U???????ń?????]??ɡ?????????×??????ń????????

Business Ethics & Anti-Corruption

DimensionIssuesCorresponding Chapter

Sustainability Report 2024Xi'an Sinofuse Electric Co., Ltd.