Suzhou Dongshan PrecisionManufacturing Co., Ltd.2024 Environmental, Social, and Governance

(ESG) Report

April 2025

Table of Contents

Report Preparation Instructions ...... 1

Message from the CEO ...... 4

About DSBJ ...... 6

Sustainable Development Governance ...... 9

Framework of Sustainable Development Governance ...... 9

Sustainable Development Strategy ...... 11

Communication with Stakeholders ...... 12

Materiality Analysis ...... 14

1. Excellent Governance for Moving Towards a New Journey of High-Quality Development

1.1 Corporate Governance ................................................................................................ 22

1.2 Business Ethics and Anti-Corruption .......................................................................... 30

1.3 Digital Intelligence Transformation ............................................................................ 35

1.4 Information Security and Privacy Management .......................................................... 37

2. Collaboration for Mutual Benefit to Build a Sustainable Supply Chain ......................... 43

2.1 Governance ................................................................................................................. 43

2.2 Strategy and Management Mechanism ....................................................................... 44

2.3 Impact, Risk, and Opportunity Management .............................................................. 54

2.4 Indicators and Targets ................................................................................................. 54

3. Insisting on Quality for Continuous Improvement of Product Quality and Competitiveness

3.1 Driven by Innovation .................................................................................................. 56

3.2 Quality Priority ........................................................................................................... 63

3.3 Professional Services .................................................................................................. 77

4. Advancing a Clean and Low-Carbon Production System for a Greener Future ............. 81

4.1 Environmental Management ....................................................................................... 81

4.2 Addressing Climate Change ........................................................................................ 84

4.3 Resource Utilization and Circular Economy ............................................................... 96

4.4 Pollution Prevention and Ecosystem Protection ......................................................... 99

5. Working Together for a Better Future Based on People Oriented Philosophy .............. 108

5.1 Labor and Human Rights Management .................................................................... 108

5.2 Human Capital Development .................................................................................... 122

5.3 Community Construction .......................................................................................... 145

Appendix ...... 148

Appendix I: Key Performance Table ...... 148

Appendix II: Index of Indicators ...... 156

Note:

This document is a translated version of the Chinese ESG Report 2024 ("2024年ESG报告"). Incase of any discrepancies, the ESG Report 2024 published in the Chinese version shall prevail. Thefull Chinese ESG Report 2024 is available at www.cninfo.com.cn.

Report Preparation Instructions

The 2024 Environmental, Social and Governance Report of Suzhou Dongshan PrecisionManufacturing Co., Ltd. (the “Report”) aims to disclose the Company’s philosophy, managementpractices, and key performance in sustainable development to stakeholders, responding tostakeholders’ expectations and concerns adequately.Scope and Boundaries of the Report

The Report mainly discloses information and key performance of Suzhou Dongshan PrecisionManufacturing Co., Ltd. and its branches and subsidiaries in fulfilling environmental, social, andgovernance responsibilities in 2024. Unless otherwise specified for certain information, the policies,statements, and data in the Report cover the actual business scope of Suzhou Dongshan PrecisionManufacturing Co., Ltd. and its branches and subsidiaries, which are consistent with those in theannual report.Reference in the Report

For ease of presentation and reading, DSBJ and its branches and subsidiaries are referred to bythe abbreviations listed in the table below throughout the Report.

Yancheng Dongshan Precision Manufacturing Co., Ltd.

Reporting Period

The period is from January 1, 2024, to December 31, 2024, and extends appropriately toprevious and subsequent years.Basis for PreparationGRI Sustainability Reporting Standards (GRI Standards) from Global Sustainability StandardsBoard; Guidelines No.17 on Self-Regulation of Listed Companies – Sustainability Report (Trial)from Shenzhen Stock Exchange (SZSE); Guidelines No.3 on Self-Regulation of Listed Companies– Preparation of Sustainability Report from Shenzhen Stock Exchange (SZSE); ISO 26000:

Guidelines on Social Responsibility (2010) from the International Organization for Standardization;and Sustainable Development Goals of the United Nations (SDGs).Principles for Preparation

This Report is subject to the following four principles, namely, “Materiality”, “Impartiality”,“Quantification”, and “Consistency”.? Materiality. The Company conducts a materiality assessment to identify and evaluate ESG

topics that are material to our business, internal and external stakeholders to focus the Report

on relevant disclosure. For a more detailed materiality assessment process and results, please

refer to the “Sustainable Development Management” section of the Report.? Impartiality. The content of the Report reflects objective facts, providing unbiased disclosure

of both positive and negative information related to the Company, and impartially stating theCompany’s efforts across various aspects of ESG. During the reporting period, we haveidentified no significant negative events with a material impact that should have been disclosed.? Quantification. In this Report, the Company discloses ESG quantitative performance

indicators and establishes quantitative performance targets where applicable. The measurementstandards, methods, assumptions, and/or calculation tools for key performance indicators inthis Report, as well as the sources of conversion factors used, have been explained in therespective sections, where applicable.? Consistency. This Report maintains consistency in the statistical and disclosure methods of thesame indicators across different reporting periods. Any changes in statistical and disclosuremethods will be fully explained in the report notes, facilitating meaningful analysis andevaluation by related parties.Source of InformationAll information data used in this Report are derived from the Company’s official documents,statistical reports, financial reports, and information summarized and reviewed by the Company’sresponsible management department. In case of any discrepancies between the relevant financialdata and the Company’s annual report, the annual report shall prevail. Unless otherwise specified,the currency amounts mentioned in this Report are denominated in Renminbi (RMB).Reliability AssuranceThe Company undertakes that the content of this Report contains no false records, misleadingstatements, or major omissions, and the Company is responsible for the truthfulness and accuracyof the content.Access to the ReportWelcome to visit the Company’s official website at www.dsbj.com to access the electronicversion of the Report.

Message from the CEO

Looking back at the past and focusing on the present. Over the decades, ESG has graduallybecome a common language for all humanity. It connects every soul that loves the Earth and pursuesdreams, creating more opportunities for connection and cooperation among people on this globalstage. Therefore, everyone is able to rise to the challenges deliberately and embrace life freely. Inthe business field, ESG has emerged as an important force driving industrial transformation andadvancing global sustainable development.DSBJ always adheres to the corporate spirit of “Breakthrough, Diversity, Simplicity andJourney” Our industrial presence continues to expand, from communication device components toprecision components for consumer electronics and core components for new energy vehicles.Every growth and breakthrough is inseparable from our dedication to our original intention, whichis to uphold long-term strategic thinking, value both economic and social benefits of consistency,and integrate sustainable development concepts into corporate operations. We continue to deepenour work in the social responsibility field and have achieved outstanding performance. Today, ourproducts and services have been sold to 48 countries and regions around the world.Amid steady growth in assets and revenue, we pay more attention to prudent operations andactively make strategic investments in the green industry. Through enhanced governance, low-carbon practices, and resource optimization, we collaborate with stakeholders to deeply empowerthe whole industry chain, and promote sustainable development in the industry. On one hand, wedeploy digitalized and intelligent factories to streamline production processes and improve energyefficiency; on the other hand, we actively delve into the upstream industry chain to strengthen theCompany’s ESG management across the entire value chain, thereby ensuring efficient and reliableproduct solutions along with perfect product delivery. We also actively embrace the trend of artificialintelligence development to fully promote the application of AI technology aligned with demand-driven outcomes in smart manufacturing scenarios.In addition, the Company has always attached great importance to the interests of customers,employees, society, and other stakeholders, effectively fulfilling its corporate social responsibilities

and promoting the co-creation of social value. Our commitment remains unchanged.Despite new changes in the global manufacturing industry, we firmly believe that today’sefforts will yield extraordinary achievements. DSBJ remains steadfast in its responsibilities andmissions. We pledge to contribute all our strength to advancing green transitions, fostering industryexcellence, and fulfilling social responsibility.

Director and CEO of DSBJ

SHAN Jianbin

About DSBJ

Headquartered in Suzhou, Jiangsu Province, Suzhou Dongshan Precision Manufacturing Co.,Ltd (stock code: 002384.SZ) is committed to developing into a core component supplier forintelligent interconnection and global connectivity. With the mission of “building a better connectedworld for tomorrow”, and the vision of “building a 100-billion advanced and intelligentmanufacturing platform”, the Company has gradually formed three major segments, namely,electronic circuit, photoelectric display, and precision manufacturing, by expanding and optimizingits main businesses through internal development and external acquisition. In the field of electroniccircuits, according to the research report data from Prismark, the Company has ranked second inflexible printed circuit boards (FPC) and third in printed circuit boards (PCB) globally in terms ofrevenue for several consecutive years. In 2024, the Company was ranked 399th among the top 500private enterprises in China and 270th among the top 500 private manufacturing enterprises in China,boasting over 70 wholly-owned, holding and equity-invested companies.

Leveraging its excellent technological innovation capabilities and forward-looking globallayout, the Company has been exploring and innovating steadfastly. We have established a dual-wheel drive strategy with consumer electronics and new energy as the two core tracks, seizing thenew market opportunity brought by new energy while continuously improving the quality andefficiency of the consumer electronics business. We also continuously deepen our efforts inemerging market sectors to provide comprehensive solutions and empowerment services to globalcustomers. In the future, we will adopt a more open posture to accelerate the advancement ofintelligent manufacturing to a higher level, driving industrial chain upgrades through technologicalempowerment to lead innovative development in the industry.

Electroniccircuit

Sustainable Development GovernanceFramework of Sustainable Development Governance

In order to better integrate sustainable development demands with the Company’s developmentstrategies and operation and management activities, DSBJ continuously improves its environmental,social, and corporate governance systems. The Company has clarified management concepts andprinciples, authority scope, work tasks, decision-making processes, and parliamentary procedures,incorporating sustainable development management into the Company’s governance framework,thereby establishing a sustainable development management system covering the Board of Directors,management, functional departments, and business segments. The Company has continuouslyenhanced its risk control and value creation capabilities in the sustainable development aspect.

The Company’s Board of Directors is the highest authority and decision-making bodyresponsible for managing economic, environmental, and social topics. The professional skills andcapabilities of the Board of Directors in supervising ESG-related impacts, risks, and opportunitiesare detailed in the “Corporate Governance/Diversified Structure of the Board of Directors” chapterof this Report. The Board of Directors authorizes the operating management to establish an ESGmanagement organizational structure at three levels, including the Sustainable DevelopmentAdministration Committee, the Sustainable Development Administration Office, and the ESGWorking Group. The Sustainable Development Administration Committee, as the executive bodyfor ESG management, is responsible for assessing and managing ESG opportunities and risks,determining the materiality of ESG issues and incorporating them into business considerations,establishing ESG strategies, goal plans, and regular reviews, supervising and guiding theimplementation of ESG topics by the Company, etc. The Sustainable Development AdministrationOffice, as the coordinating body for ESG management, is mainly responsible for dailycommunication and conference organization between the Sustainable Development AdministrationCommittee and the ESG Working Group, the coordination and promotion of ESG topic managementand implementation, as well as ESG-related information disclosure, etc. The ESG Working Group,as the specific executive body for ESG work, is mainly responsible for promoting theimplementation and execution of ESG topics. The performance of relevant departments is linked to

ESG performance indicators, and reward and penalty measures will be implemented according tothe results of annual assessments.

During the reporting period, the Company deliberated major ESG issues such as materialityassessment and achievement of goals on ESG issues while organizing multiple ESG-specifictraining sessions to enhance employees’ understanding of the Company’s ESG managementstrategies and related work, thereby better promoting the implementation of ESG efforts.

Framework of Sustainable Development Governance

Sustainable Development StrategyUnder the mission of “building a better connected world for tomorrow”, DSBJ integratessustainable development with the Company’s strategies and aligns with the United Nationssustainable development goals (SDGs) and industry development trends to systematically plan theCompany’s sustainable development pathway. By actively managing identified ESG impacts, risks,and opportunities, the Company is embarking on a new journey towards high-quality developmentand green transformation.

Communication with StakeholdersAttaching importance to the expectations and demands of various stakeholders, DSBJ hasestablished a smooth communication mechanism for all stakeholders, under which we conductregular communication with stakeholders and respond to them with an open attitude, therebyestablishing long-term cooperative relationships with all parties based on mutual trust.

Insistence on qualityOutstanding governanceCollaboration for win-win situation

Friendly to the EnvironmentPeople Orientation

Key stakeholders

Key stakeholders

Materiality AnalysisMateriality analysis helps enterprises identify and assess potential risks, providing support fordecision-making and management. In 2024, DSBJ updated its analysis methods according to thelatest disclosure standards, including but not limited to the GRI Sustainable Development ReportingStandards (GRI Standards), the International Financial Reporting Standard on SustainabilityDisclosure 1 - General Requirements for Disclosure of Sustainability-related Financial Information(IFRS S1), and the Guidelines No.17 on Self-Regulation of Listed Companies – SustainabilityReport (Trial) from Shenzhen Stock Exchange. This update involved research and assessment fromtwo dimensions: “Impact Materiality” (the materiality of impacts on economic, environmental, andsocial sustainability) and “Financial Materiality” (the materiality of impacts on the Company’sfinances). Through the research and assessment, we comprehensively reviewed various concernsand their financial impacts on the Company, selected ESG key topics with high impacts that wouldbe highlighted in the report, and continuously improved ESG management to better meetstakeholders expectations and demands.

Researchamongstakeholders

? Analysis on Impact, Risk and Opportunity of Materiality Topics

Materiality

Topics

MaterialityTopics

MaterialityTopics

MaterialityTopics

1. Excellent Governance for Moving Towards a New Journey of High-Quality Development

Sustainable Development Goals (SDGs) of the United Nations

1.1 Corporate Governance

1.1.1 Standardized Governance

In strict accordance with the requirements of laws, regulations, and normative documents, suchas the Company Law of the People’s Republic of China, the Securities Law of the People’s Republicof China, the Guidelines No. 1 on Self-regulatory Supervision for Companies Listed on ShenzhenStock Exchange - Standardized Operation of Companies Listed on the Main Board, the Code ofCorporate Governance for Listed Companies, the Company has established a complete legalgovernance structure and modern organizational management system. We have formed agovernance system and mechanism with a clear division of powers and responsibilities among thepower, decision-making, supervision, and execution bodies that can ensure coordinated operationeffective checks and balances, and continuous optimization of management documents and internalprocesses at all levels. Through these initiatives, the Company is constantly improving thegovernance standardization and effectiveness to strengthen the foundation for stable development.

? Governance structure

The Company has established a corporate governance structure consisting of the GeneralMeeting of Shareholders, the Board of Directors, the Board of Supervisors, and the Management.

The General Meeting of Shareholders exercises the voting rights on major issues such as theCompany’s business policies, investment plans, and the election of directors and supervisors inaccordance with laws. The Company convenes and holds the general meeting of shareholders instrict accordance with relevant laws and regulations and the requirements of the Articles ofAssociation and the Parliamentary Procedures for the General Meeting of Shareholders to ensurethat all shareholders enjoy the equal status and have the equal right to be informed and makedecisions on major issues, hence effectively safeguarding the legitimate rights and interests of allshareholders. The Board of Directors is responsible to the General Meeting of Shareholders andexercises the Company’s management rights in accordance with the laws. The Board of Directorshas four specialized committees, namely, the Strategy Committee, the Audit Committee, theNomination Committee and the Remuneration and Appraisal Committee, which perform their dutiesin accordance with the Articles of Association and the authorization from the Board of Directors toprovide professional opinions and reference suggestions for decisions of the Board of Directors. Allfour specialized committees have employed independent directors, and in the Audit Committee, theNomination Committee and the Remuneration and Appraisal Committee, the independent directorshave constituted the majority of committee members and serve as the chairman, in order to ensurethat decesions are made professionally and independently. The Board of Supervisors, as thesupervisory body, is responsible to the General Meeting of Shareholders and strictly fulfills its dutiesin accordance with the Articles of Association, the Parliamentary Procedures for the GeneralMeeting of Shareholders, and other systems. The Board of Supervisors is responsible for supervisingthe Company’s financial position, fundraising management and the performance of the Company’sdirectors and senior officers, as well as expressing opinions on major issues, so as to the Company’sstandardized operation. The Board of Supervisors consists of 3 supervisors, including 2 employeerepresentative supervisors. For detailed information on the corporate governance structure,governance mechanism, equity structure, controlling shareholders, and de facto controllers, pleaserefer to the DSBJ Annual Report 2024.

The Company selected and appointed directors, supervisors, and senior officers in strictcompliance with the established procedures, with no member changes in 2024. In accordance withthe regulations of Rules for the General Meeting of Shareholders of Listed Companies, ManagementMeasures for Independent Directors of Listed Companies, and others, the Company has formulatedRules of Procedure for General Meetings of Shareholders, Rules of Procedure for SpecializedMeetings of Independent Directors, Rules of Procedure for the Board of Directors, Rules ofProcedure for the Board of Supervisors, etc. When convening meetings of the General Meeting ofShareholders, Board of Directors, and Board of Supervisors, it strictly adheres to the voting mattersand procedural requirements to effectively safeguard the legitimate rights and interests of the listedcompanies and all shareholders.

? Diversified structure of the Board of Directors

DSBJ acknowledges and firmly believes that the increasingly diversified structure of the Boardof Directors is a crucial factor in maintaining the Company’s competitive advantage and sustainabledevelopment. The Company has implemented a diversity policy for the Board of Directors. Whenrecommending candidates to join the Board of Directors, the Nomination Committee will fullyconsider the diversity factors and adopt a rigorous selection procedure to maintain an appropriateand balanced structure of the Board of Directors in terms of capabilities, skills, experience, gender,age, and cultural and educational backgrounds, thereby ensuring that the Board of Directors canmake decisions in a scientific and effective manner.The Company currently has 9 members in the Board of Directors, including 1 female director,accounting for 11.1%, and 3 independent directors, accounting for 33.3%. Members of the Board ofDirectors have possessed interdisciplinary expertise and extensive industry experience, coveringareas such as management, risk control, financial accounting, law, and international operations, with

66.7% holding master’s or doctoral degrees. One independent director in the Audit Committee is anaccounting professional and some board members have rich experience in risk prevention andcontrol, which means they can effectively assist the Company in identifying, preventing, mitigating,and managing risks. Each member of the Board of Directors has performed their duties to the bestof their abilities, actively promoting the efficient and standardized operation of the Company. In2024, in order to continuously improve the Company’s governance and decision-making ability, theCompany led independent directors to visit the MFLEX Suzhou factory, Kunshan factory, YanchengIndustrial Park, and Suzhou Rf Base to have them gain an in-depth understanding of the Company’sbusiness development.

1.1.2 Risk Management and Internal Control

In strict accordance with the requirements of the Company Law of the People’s Republic ofChina, the Basic Norms of Enterprise Internal Control and its supporting guidelines, as well as theregulatory requirements on internal control from the China Securities Regulatory Commission andstock exchanges, DSBJ continuously promotes the construction, evaluation, and supervision of therisk management and internal control system and the orderly implementation of various special

audits and key project audits. In this way, we can ensure the effective operation of the system tosafeguard the Company’s sustainable and stable development. In addition, the Company hasenhanced employees’ awareness of internal control risks and strengthened internal controlmanagement capabilities through internal control training, forming a risk prevention pattern withfull participation, so as to continuously improve the Company’s standardized operation capabilities.

During the reporting period, by continuously improving the risk prevention mechanism, theCompany has formed a stable risk management structure and work system that meets theCompany’s business scale and operational management demands. Through continuous optimizationof the risk management assessment process, we could timely identify and assess risk sourcesexisting in the Company’s operations, and improve and supervise risks closely related to theCompany’s operations such as investment risks, business risks, operational risks, and risks relativeto sustainable development, thereby achieving a closed-loop management to control the overall risksat an acceptable level. The Company promptly incorporates major ESG risks and opportunities intothe risk review and business planning process for taking full consideration of them in the Company’soperational plan, thereby controlling or mitigating risks in a better way and seeking growth andtransformation opportunities accordingly. We have paid close attention to global trade policy trendsbased on the Company’s overseas strategic layout, regularly assessing and providing early warningson overseas business risks, and establishing and improving the internal control system for overseasbusinesses, so as to support the Company’s globalization strategy.

1.1.3 Protection of Investors’ Rights and Interests

? Conducting Information Disclosure in a Rigorous and Standardized MannerIn strict accordance with regulatory documents such as the Securities Law of the People’sRepublic of China, Measures for the Administration of Information Disclosure by Listed Companies,as well as the Articles of Association and Information Disclosure Management System, the Company,under the principle of “truth, accuracy, completeness, and timeliness” in information disclosure, hasdiligently fulfilled its information disclosure obligations and continuously presents information ofthe Company’s operations to investors from multiple levels, perspectives, and angles based oninvestors’ demands, in order to enhance the quality and effectiveness of information disclosure. In2024, the Company revised the information disclosure management policy and formulated andpublished information disclosure management regulations, issuing a total of 4 periodic reports and105 interim announcements, further enhancing the quality and transparency of informationdisclosure. During the reporting period, the Company’s disclosed information has contained no falserecords, misleading statements, significant omissions, or other improper disclosures. At the sametime, the Company has also kept a close eye on the public opinion environment and market tradingconditions to effectively protect the legitimate rights and interests of investors.

? Enhancing Interaction and Mutual Trust with Investors

Attaching great importance to investor relations management, the Company continuouslyimproves internal policies such as the Regulations for Investor Relations Management and expandscommunication channels with investors. Through activities such as performance presentationmeeting, conference calls, organized visits and researches, the Company has maintained timely andeffective communication with investors on corporate governance, operating conditions, sustainabledevelopment, etc., which further enhances the interaction and mutual trust between the Companyand investors. In 2024, the Company deepened investors’ understanding of the Company throughvarious activities such as holding financial results announcement meetings, participating in strategymeetings, conducting reverse roadshows, and receiving research visits. The Company sincerely tookthe opinions and suggestions of shareholders and potential investors, and provided timely replies

and explanations to shareholders and potential investors, so as to build a good interactive ecosystemwith investors and render high-quality services to investors.

? Safeguarding the Rights and Interests of Minority Shareholders

The Company equally treats all shareholders and continuously standardizes the procedures forconvening, holding, deliberating, and voting on the general meeting of shareholders, to ensure thatinvestors, especially minority shareholders, can enjoy the right to be informed and participate inmajor matters of the Company. The Company, after fully considering the time, place, and conveningapproach of the general meeting of shareholders, has adopted a combination of on-site voting andonline voting for issues deliberated on the general meeting of shareholders, so as to facilitate theparticipation of shareholders, especially that of minority shareholders. For major matters that mayaffect the rights and interests of minority investors, the Company has counted and disclosed thevotes from minority investors separately whereby the opinions of them can be fully expressed.Through channels such as the platform of “EasyIR”, the Company has communicated with investors,fully listening to opinions and demands of minority shareholders and timely responding to issues ofconcern to minority shareholders. In 2024, the Company responded to 183 questions from minorityinvestors through the “EasyIR”platform, achieving a 100% response, and assigned dedicatedpersonnel to answer the investor hotline, patiently addressing the inquiries from minority investors.

? Sharing the Company’s Development Achievements

While focusing on our own development, the Company adheres to an investor-orientedapproach. Since listing, the Company has been strictly formulating a cash dividend policy thatcombines continuity and stability in accordance with the Articles of Association to create a “long-term, stable, and sustainable” shareholder value return mechanism, thereby continuously sharingthe Company’s development achievements with investors. During the reporting period, theCompany, based on actual operating conditions and development plans, has formulated an annualprofit distribution plan on the premise of ensuring normal operations and long-term development.Independent directors have fulfilled their duties and responsibilities to express clear, independentopinions on the preparation and decision-making process of the profit distribution plan. The relevantproposals, after being reviewed by the Board of Directors and the Board of Supervisors, are

submitted to the General Meeting of Shareholders for deliberation, thereby effectively safeguardingthe legitimate rights and interests of shareholders. In 2024, the Company implemented the 2023profit distribution plan, distributing a cash dividend of RMB 2.5 (including tax) per 10 shares,totaling RMB 425,319,100 in cash dividends, which accounted for 21.65% of the Company’s netprofit attributable to shareholders in 2023.

1.1.4 Tax Transparency

DSBJ has always upheld tax compliance and regulatory-adherent operations as thefoundational cornerstone of corporate development. The Company has rigorously complied withdomestic regulations, such as the Enterprise Income Tax Law of the People’s Republic of China,and international tax frameworks, and has institutionalized robust governance through internalpolicies such as the DSBJ Tax Compliance Management Regulations, which standardize tax filing,risk management, tax incentives, and tax strategy alignment for global operations. In order to ensurethe accuracy and compliance during tax management, we have established a dedicated tax team andintroduced advanced financial management software and automated tax governance systems. Wealso reject tax structures lacking commercial substance and adopt the principle of independenttransactions for transfer pricing. During the reporting period, DSBJ achieved a 100% tax filingtimeliness rate, receiving an A-level tax credit evaluation, and accurately completed overseasbusiness tax filings, with no significant tax non-compliance issues reported.The Company has implemented a comprehensive tax risk management framework,establishing internal tax risk assessment metrics to conduct regular tax risk identification and self-evaluation processes. This systematic approach can transform tax risk governance from reactivemitigation to proactive control. In addition, the tax team organizes monthly internal training sessionsand facilitates cross-departmental workshops to integrate tax compliance requirements intooperational workflows, thereby enhancing all employees’ understanding and prioritization of taxcompliance.

1.2 Business Ethics and Anti-Corruption

1.2.1 Governance

DSBJ strictly complies with laws and regulations and industry codes, such as the CompanyLaw of the People’s Republic of China, the Anti-Unfair Competition Law of the People’s Republicof China, the Anti-Monopoly Law of the People’s Republic of China, and the Guidelines No. 1 onSelf-regulatory Supervision for Companies Listed on Shenzhen Stock Exchange - StandardizedOperation of Companies Listed on the Main Board. The Company has established a comprehensivestructure covering business ethics and compliance management of the Company and its supply chain,solidifying the defense against breaches of business ethics. The Board of Directors serves as thehighest decision-making body for business ethics and anti-corruption management, while the AuditCommittee subordinated to the Board of Directors is responsible for overseeing the implementationof business ethics management systems and requirements and fulfilling its duties concerningsignificant compliance and business ethics matters. In terms of operations, the audit department, asan independent oversight body within the Company, is responsible for assessing risks from businessethics and anti-corruption matters, formulating related policies and systems, conducting routineaudit supervision, and collaborating with the human resources department to promote businessethics among all employees, thereby ensuring the Company consistently complies with high-standard compliance and ethical requirements. All functional departments of the Company strictlycomply with and implement the relevant provisions on business ethics.

The Company implements a business ethics management system focused on the Policy forManagement of Business Ethics and Integrity Efforts, achieving 100% coverage across all businesssegments and functional departments. This system requires the Company’s directors, all employees,and all supply chains and partners to comply with anti-fraud, anti-money laundering, anti-corruption,fair competition and anti-monopoly, and conflict-of-interest prevention requirements. For suppliers,the Company has developed a dedicated policy of the Supply Chain Personnel ConductManagement Procedures and Standards, explicitly mandating business ethics and anti-corruptionrequirements for suppliers, so as to ensure that suppliers continuously improve their business ethicsmanagement systems.

1.2.2 Strategy and Management Mechanism

DSBJ recognizes business ethics as the cornerstone of corporate development. We haveinstitutionalized a robust business ethics and anti-corruption governance framework, integratingenhanced training programs of business ethics and anti-corruption into the Company’s developmentstrategies and daily operations. We also require our supply chain partners to comply with businessethics and anti-corruption requirements, in order to safeguard our high-quality and sustainablegrowth. During the reporting period, the Company has been involved in no major litigation casesrelated to corruption, bribery, or unfair competition.

DSBJ joined the Anti-Fraud Alliance Association.

? Business Ethics Culture Construction

The Company actively fosters a culture of business ethnics, ensuring that its requirements inbusiness ethics are communicated to employees, suppliers, and other internal and externalstakeholders. It also calls for the practical fulfillment of business ethnics commitments across alllevels of the organization. The Company internally conducts effective business ethics promotionthrough employee handbooks, rules and regulations, newsletters, etc., and regularly provides anti-fraud training and integrity and ethics education to the management and all employees, so as toensure that all employees maintain integrity, honesty, and diligence in work and actively preventcorrupt behavior. The Company has also established regulations such as the Gift Acceptance andEntertainment Management Norms, and the Conflict of Interest Management Norms, the Anti-Corruption Management Regulations to regulate employees’ behaviors, requiring all employees tosign the Anti-Fraud and Anti-Bribery Commitment Letter, so as to ensure that every employeecomplies with anti-corruption and integrity requirements.

Offline: Integrity and conflict of interest

training

? Anti-Unfair Competition

The Company strictly complies with the Anti-Unfair Competition Law of the People’s Republicof China and the relevant anti-monopoly and anti-unfair competition laws and regulations of thecountries and regions where it operates. We encourage each business segment to establish anti-unfaircompetition policies, clearly prohibiting unfair competition behaviors such as price manipulation,false advertising, and infringement of trade secrets. We are committed to fostering a fairer and moretransparent market competition environment. In 2024, the Company violated no anti-unfaircompetition laws and regulations.

MULTEK Code of Business ConductsWe strive to outperform our competitors fairly and equitably, rather than through unethical orillegal business practices. We strictly forbid theft of proprietary information, acquisition of tradesecrets without the owner authorization, and inducing current or former employees of otherorganizations to disclose such confidential data. The Company’s relevant personnel shallendeavor to respect the rights of the clients, suppliers, competitors and employees of theCompany and treat them fairly and equitably. All relevant personnel of the Company shallrefrain from deriving improper benefits through manipulation, concealment and abuse ofprivileged information, misrepresentation of critical data or any deliberate unfair tradingpractices.

? Supply Chain Business Ethics Management

The Company has established the Management Procedures and Regulations for Supply ChainPersonnel Conducts and requires all suppliers to sign the Integrity Cooperation Agreement, the Anti-Fraud and Anti-Commercial Bribery Commitment Letter or the Anti-Commercial BriberyAgreement before cooperation. We also set up external reporting channels to identify and preventbusiness ethics risks. The Company conducts audits on the suppliers’ performance of the code ofconduct and management of business ethics, as well as due diligence investigations, project audits,and compliance checks with partners based on cooperation projects when necessary, to ensure

continuous supervision of supply chain compliance risks. Suppliers with serious violations will beblacklisted and punished according to the Company’s relevant regulations.

? Reporting Management

The Company tolerates no behavior that violates business ethics, and has formulated theMisconduct Reporting Mechanism and Handling Measures to continuously improve the reportingand handling mechanism. We also ensure that all employees understand the reporting channels andprocesses through training and publicity posters. Employees of the Company at all levels and allparties of the society with direct or indirect economic relationships with the Company can reportactual or suspected violations of business ethics by the Company and its employees through variousreporting channels such as reporting hotlines, emails, and letters. The Company’s internal auditdepartment is responsible for handling complaints and reports related to employees’ misconduct,and dedicated personnel are designated to receive, process, and provide feedback on complaints andreports, as well as investigate disciplinary cases. If it is confirmed that there are facts of corruption,the Company will take actions against the individuals involved based on the severity of the facts,including but not limited to position transfer, demotion, downgrade, salary reduction, terminationof employment contracts, and referral for legal action.The Company strictly adheres to the principles of independence, objectivity, fairness, andconfidentiality. In accordance with relevant provisions on protecting whistleblowers, the Companystrictly maintains the confidentiality of the whistleblowers’ personal information and the reportingmaterials they provide throughout the process of acceptance, registration, and investigation. At thesame time, the Company rigorously safeguards the personal safety of whistleblowers and harshlypunishes any retaliatory actions. Individuals found to violate confidentiality rules or engage inretaliatory actions against whistleblowers will be held accountable in accordance with the relevantprovisions of the Company, with severe penalties imposed on those involved in retaliatory actions.Individuals committing criminal acts will be referred to judicial authorities for prosecution.Whistleblowers who provide credible reports and can recover significant losses for the Companywill be rewarded based on the amount saved.

DSBJ reporting email: jubao@dsbj.comMFLEX reporting email: jubao@mflex.comMultek reporting email: fxgl@Multek.com

DSBJ reporting email: jubao@dsbj.comMFLEX reporting email: jubao@mflex.comMultek reporting email: fxgl@Multek.com

1.2.3 Impact, Risk, and Opportunity Management

DSBJ integrates business ethics and anti-corruption risks into the Company’s comprehensiverisk management system. To properly address business ethics-related risks, the Company regularlyconducts identification and assessment of business ethics risks (refer to the “Risk Management andInternal Control” section of this report for detailed processes). In the event of significant changes inthe external environment or some major events or business changes in the Company, we will alsoassess these risks timely. The Company has defined risk control strategies around business ethicsrisk points in the areas of trading opportunities, power positions, funding costs, compliance andregulation to ensure that all business practices meet ethical and compliance requirements.The headquarters of DSBJ is responsible for coordinating, supervising and guiding eachdivision for the establishment of overall control procedures and mechanisms, with the audit resultsdirectly reported to the Audit Committee subordinated to the Board of Directors. The Companyestablishes an audit and inspection department independent from the business operation system,which exercises investigation rights independently. The Company also develops an audit programannually carries out regular audits on the implementation of business ethics-related policies and thecommercial ethics risks in various business scenarios through compliance audits, operational audits,and special audits. Internal audits relative to business ethics should cover all of the Company’soperating locations and businesses every three years. Moreover, the Company develops a continualimprovement plan based on audit findings to enhance the business ethics and anti-corruptionframework.

1.2.4 Indicators and Targets

Indicators and Targets

1.3 Digital Intelligence Transformation

DSBJ has proactively embraced technological changes, aligning various business segments toenhance the development of a comprehensive technical framework and implementation strategy forintelligent manufacturing. We have established a data-centric, multi-platform, and multi-systeminteractive integration system that fosters deep synergy between digital technology and themanufacturing sector. This initiative not only advances the integration of artificial intelligence withnew industrial processes but also injects fresh momentum into the Company’s development. In 2024,DSBJ continued to promote the integration of informatization and industrialization and theconstruction of smart factories. Based on the analysis of domestic and international technologytrends such as big data and artificial intelligence (AI), we formulated a new three-year strategiclayout (2024-2026) towards “accelerated development driven by digital and intelligent decision”.

Harnessing digital and intelligent decisions to accelerate development for empowering

innovation-led growth

engines (continuous improvement of information security system,information security prevention and control technical capabilities, andinformation security emergency response capabilities).

engines (continuous improvement of information security system,information security prevention and control technical capabilities, andinformation security emergency response capabilities).

? Data Governance and Big Data Platform Construction

Data governance and big data platform construction serve as a foundational cornerstone ofintelligent manufacturing. The Company continuously optimizes the big data platform throughpolicies including the Big Data Platform Management Standards and the Data Quality ControlRegulation, to achieve seamless integration of workforce mobility, logistics, capital flow, processoptimization, information integration, and technology deployment, which has significantlyenhanced operational efficiency and fostered industrial upgrading.

? AI-driven Empowerment

By advancing industrial digitalization with the “Intelligent Matrix”, DSBJ creates a robustmanufacturing system that integrates automation, digitization, and intelligence technologies.

? Digital Talent Cultivation

Digital talents act as a key driving force behind the implementation of the intelligent strategyof DSBJ. We are refining the digital talent development ecosystem designed to nurture versatileprofessionals skilled in data-driven decision-making, low-code development, BI analytics, and AIapplications.

1.4 Information Security and Privacy Management

1.4.1 Governance

DSBJ strictly complies with China’s laws and regulations, such as the Cybersecurity Law ofthe People’s Republic of China, the Data Security Law of the People’s Republic of China, and thePersonal Information Protection Law of the People’s Republic of China, as well as those of othercountries, such as the U.S. Cybersecurity Information Sharing Act, the Amendment of Personal DataProtection Act (PDPA) and the Digital Trust Framework Act in Singapore. Accordingly, theCompany has established a comprehensive governance structure for information security andprivacy protection. The Company has established an information security and privacy protection

working group and an Information Technology Department at the headquarters level. Theseorganizations collaborate with the Security and Privacy Committee and the Information SecurityDepartment of the overseas headquarters in Singapore to research and translate global dataprotection laws and policies, and jointly advance the development, implementation, and supervisionof information security and privacy management planning. Through these initiatives, we ensure thatthe information security operation and maintenance system is running effectively. In addition, eachdivision is equipped with dedicated personnel responsible for implementing specific tasks relatedto information security and privacy protection, so as to strengthen information data securitymanagement and improve data governance.The Company has established a series of institutional norms including the Data SecurityManagement Procedures, the Information Security Risk Management Procedures, the InformationAsset Security Management Procedures, and the Information Security Reward and PunishmentPolicy, in order to create a comprehensive information security protection system that covers allbusiness areas of the Company, thereby ensuring the security of information infrastructure,application systems, products, and customer information. In 2024, the Company revised theInformation Security and Privacy Manual and the Privacy Governance Policy based on the latestISO 27001 requirements, and added cloud service management requirements to ensure the ongoingeffectiveness and adaptability of the information security management system.

1.4.2 Strategy and Management Mechanism

With reference to the latest requirements of ISO 27001 information security managementsystem and ISO 27701 personal privacy information management system, DSBJ has adoptedvarious measures to continuously improve the overall information security level, includingestablishing an information security management platform, unifying information securitymanagement policies, implementing centralized deployment of information security, and clarifyingthe requirements and standards to employee behaviors in information security management,information security technology, and emergency response and conducting enhanced training andregular audits on information security and privacy protection.

Management SystemDSBJ has been certified with the ISO27701 Personal Privacy Information ManagementSystemDSBJ has been awarded the title of “Five-Star Cloud Enterprise”

Management SystemDSBJ has been certified with the ISO27701 Personal Privacy Information ManagementSystemDSBJ has been awarded the title of “Five-Star Cloud Enterprise”

? Comprehensive Information and Data Security Management

emergencymanagement

? Supplier Information Security Management

In accordance with the Supplier Relationship Management Procedure and the Supplier Policyformulated by the Company, it is necessary to assess the risks of information security and privacymanagement brought by supplier services, and products or services provided by suppliers thatshould meet local operational and industrial standards and requirements before cooperating withsuppliers, in order to prevent the loss of the Company’s information assets and personal informationleakage. The Company has also formulated relevant policies, such as the Supplier InformationSecurity Verification Plan, the Supplier Information Security Verification Form, the Cloud ControlQuestionnaire, the Cloud Service Security Audit Questionnaire and conducts on-site assessments onkey suppliers, to determine whether their information security and privacy management meet therequirements. Suppliers should also execute the Supplier Service Confidentiality Agreement toguarantee they strictly meet the local information security requirements.

? Protection of Personal Information and Privacy

The Company has developed documents such as the DSBJ Privacy Policy, the PersonalIdentity Information Control and Management Procedures, and the Information Security andPrivacy Manual to ensure transparency in data collection and usage, thereby safeguarding the rightto know, to choose, and to control personal information. An emergency response plan is alsoestablished to ensure customer information is not leaked.

1.4.3 Impact, Risk, and Opportunity Management

DSBJ has developed the Information Security Risk Management Procedures, whichcomprehensively cover information security risk identification, risk assessment and analysis, risktreatment, residual risk disposition, and risk control. By quantifying risk level, the Company canmore accurately identify and assess potential information security risks, and develop targetedresponse measures to ensure that information security and privacy protection risks are visible,preventable, and controllable. The Company regularly audits its information security and privacymanagement system in conjunction with business characteristics, including comprehensive internalinformation security audits (at least once a year), annual external audits by ISO 27001 certificationbodies, and annual information security audits by global leading clients, to evaluate and improverisk control measures, so as to better safeguard business continuity and data asset security.

1.4.4 Indicators and Targets

Indicators and Targets

2. Collaboration for Mutual Benefit to Build a Sustainable SupplyChainSustainable Development Goals of the United Nations (SDGs)

2.1 Governance

The quality, resilience, and sustainability of the supply chain are critical to the robustdevelopment of DSBJ. The Company has established a sustainable supply chain working group.The Supply Chain Management Center at the Company’s headquarters is responsible for identifyingand assessing supply chain risks, formulating or updating policies and systems related to sustainablesupply chain construction, and promoting risk-oriented sustainable supply chain management. TheSupply Chain Management Department of each division is responsible for centralized managementof suppliers belonging to its own business segment, including continuous optimization of thesupplier pool, and supplier audits, evaluations, and controls in collaboration with relevantdepartments such as R&D, quality, and EHS, in order to jointly ensure the security, stability, andhigh quality of the supply chain.

The Company strictly complies with relevant national laws and regulations such as the Law ofthe People’s Republic of China on Bid Invitation and Bidding and the Regulation on theImplementation of the Law of the People’s Republic of China on Bid Invitation and Bidding. It hasformulated institutional norms and guidelines related to bid invitation, procurement and suppliermanagement, such as the Supply Chain Management System, Supplier Management Process andNorms, Supplier Admission and Approval Process Management Norms, and ProcurementManagement Process and Norms to continuously improve the supplier lifecycle management.

2.2 Strategy and Management Mechanism

Guided by the Company’s business strategy, DSBJ strives to create a fair and equitableprocurement environment that can continuously optimize the supplier lifecycle management, inorder to constantly improve the quality and risk resilience of the supply chain. We are devoted tobuilding a competitive, resilient, and sustainable supply chain that can provide a solid guarantee forthe Company’s vision of “building a 100-billion advanced and intelligent manufacturing platform”.

The Company has 5,040 suppliers in total, including 4,531 suppliers from China (includingHong Kong, Macau, and Taiwan) and 509 suppliers overseas.

2.2.1 Supplier Lifecycle Management

The Company has established a supplier lifecycle management system and mechanism tostandardize the process mechanism for supplier admission, assessment, evaluation, and exit, therebybuilding a high-quality, safe, and stable supplier team.

Supplier lifecycle management

classificationmanagement

2.2.2 Sustainable Procurement

The Company has incorporated the sustainable development requirements into its supply chainmanagement system, and promoted each business segment to formulate the requirements forsuppliers’ social code of conduct in accordance with the Electronic Industry Code of Conduct(EICC), the Social Accountability Standard (SA8000), and a series of standards issued by theInternational Labor Organization (ILO). When selecting suppliers, the Company’s businesssegments deeply understand the performance of suppliers in sustainable development with greatattention paid to ESG factors, ensuring that suppliers’ performance in governance, social, andenvironmental aspects meets the requirements. At the supplier admission stage, the Companyrequires suppliers to sign the Supplier Social Responsibility Commitment Letter and the SupplierCode of Conduct Assurance Agreement to make commitments for occupational health and safety,environmental protection, business ethics, etc. In addition, the Company identifies, assesses, andcontrols potential risks, inclusive of ESG risks, in the supply chain according to internal checklistssuch as the Supplier Environmental and Social Responsibility Audit Form and the Supplier GreenProduct Management System Evaluation Form, to ensure the sustainability and stability of thesupply chain. Please refer to the “Excellent Governance for Moving Towards a New Journey ofHigh-Quality Development/Business Ethics and Anti-Corruption” chapter for detailed informationon supply chain business ethics and anti-corruption management. In addition, with emphasis on

protecting suppliers’ rights and interests, the Company treats suppliers faithfully while ensuringequitable treatment of SME partners to uphold their legitimate rights and interests.

? Quality Risk Control

The Company has established internal management policies such as the Supply ChainManagement Policy and the Supplier Management Control Procedures, to set up requirements forthe quality qualifications of suppliers. According to the requirements, suppliers should have boastedprofessional qualifications of the services or products they provide and established a sound qualitymanagement system complying with current laws and regulations, including the ISO 9001 qualitysystem certification and the IATF 16949 quality system certification (for suppliers that produceautomotive parts). Suppliers must continuously meet these requirements. At the same time, theCompany requires key suppliers to execute the Supplier Quality Assurance Agreement.The Company communicates in a timely manner with suppliers to ensure that suppliers fullyunderstand the quality requirements for the materials they supply. Furthermore, the Companymanages suppliers through supplier audits, incoming material inspections, performance evaluations,and continuous improvement to ensure product safety and quality. Supplier quality audits areconducted in accordance with the Supplier Audit Management Procedures, encompassing audits onquality management systems, product design and development, material and supplier management,manufacturing process management, change management, non-conformity control, improvementand after-sales service, hazardous substance management, etc. The Company formulates an annualsupplier audit plan and strictly implements it, with dynamic audits conducted in case of qualityissues or other abnormalities. The procurement, quality, and other departments of the Company’sbusiness segments conduct regular reviews and analyses focusing on supplier quality audits andevaluations. For any non-conformity items identified during the process, the Company will requirethe suppliers involved to rectify the items within a specified period in the form of writtenimprovement reports, and provide quality training and technical cooperation and exchanges whennecessary to jointly improve the quality.Based on the results of supplier quality assessments and the issues identified during the auditprocess, each business segment is required to collaborate with relevant departments to conduct

regular quality management capability improvement training tailored to suppliers to meet thespecific product requirements of each unit. Additionally, each business segment needs to providetargeted guidance and assistance to suppliers, including support for technological transformation,upgrading, and optimization efforts. Through these collaborative initiatives, we seek to assistsuppliers in enhancing their quality standards and collectively promote product upgrades across oursupply chain.

Suppliers certified to the quality management system: 2,747Suppliers that have executed the quality assurance agreement: 2,759Suppliers certified to the IECQ QC 080000 Hazardous Substances Process ManagementSystem: 593

? Human Rights Risk Management

DSBJ drives various business segments to develop the Supplier Code of Business Conduct andEthics in accordance with the requirements of the International Labor Organization (ILO), the Codeof Conduct for Responsible Business Alliances (RBA) and the relevant laws and regulations of theplaces of operation. The content of the code of conduct should include anti-child labor and anti-forced labor, working and rest hours, anti-discrimination, collective bargaining, occupational healthand safety requirements, etc. We also require suppliers to sign social responsibility commitmentletters or guarantee agreements, in order to guide suppliers to strengthen sustainability managementand ensure that products or services from them are produced or provided in a manner that complieswith human rights requirements and ethical standards.

Employmentconditions

Suppliers certified to the occupational health and safety management system: 990Suppliers successfully passed third-party ESG audits, such as the Responsible Business Alliance(RBA) and Sedex: 74

? Driving the Green Transformation of the Supply Chain

As driven by the Company, each business segment actively implements green procurement andsigns the Green Product Guarantee Statement with suppliers. They require suppliers to use limitedresources prudently and responsibly, guarantee all production processes of the products comply withthe requirements of environmental laws and regulations, and minimize the impact of the businessactivities on the environment. In addition, all business segments mandate suppliers to execute theRestricted Substances Compliance Agreements and the REACH Substances of Very High ConcernDisclosure Statements, ensuring adherence to RoHS directives, relevant laws and regulations of theplaces of operation on electronic product pollution control, and Hazardous Substance-Free (HSF)management requirements. This collaborative governance has driven green transformation acrossthe supply chain.

Suppliers certified to the environmental management system: 1,163

Environmental Management Performance Evaluation Questionnaire, through which it assessessuppliers’ certification and construction of environmental management systems, progress ofenvironmental topics such as three-waste emissions and waste management, environmentalcompliance, environmental emergency management, etc. In these assessments, suppliers with ascore equal to or more than 60 points are considered qualified while those with a score less than60 points are considered unqualified. The unqualified suppliers are required to makerectifications. If they fail to respond or improve, Yancheng Dongshan will terminate businessdealings with them.

Environmental Management Performance Evaluation Questionnaire, through which it assessessuppliers’ certification and construction of environmental management systems, progress ofenvironmental topics such as three-waste emissions and waste management, environmentalcompliance, environmental emergency management, etc. In these assessments, suppliers with ascore equal to or more than 60 points are considered qualified while those with a score less than60 points are considered unqualified. The unqualified suppliers are required to makerectifications. If they fail to respond or improve, Yancheng Dongshan will terminate businessdealings with them.

? Supplier Collaboration for Mutual Benefit

The Company actively encourages cooperation and communication with suppliers throughannual supplier conferences, daily technical exchanges, various specialized training sessions, etc.With these measures, we help suppliers continuously improve their process technology levels,optimize working methods, and timely update information on production requirements and policytrends. We are growing together with suppliers in an open and cooperative manner. During thereporting period, the Company provided training to 421 suppliers.

Technical communication with electronic manufacturers

2.2.3 Resilient Supply Chain

Establishing a resilient supply chain and ensuring business continuity are important guaranteesfor the Company’s stable operations. To ensure a stable supply of strategic resources, the Companyhas formulated a Business Continuity Plan for the Supply Chain Management Department andcontinuously optimized the supply chain structure to ensure that suppliers have diversifiedbackgrounds and come from multiple channels. The Company has also conducted enhanced

preventive control measures against factors such as supply chain disruptions, price increases, andunexpected events, effectively preventing potential risks in the supply chain and strengtheningsupply chain resilience. In 2024, the Company’s raw material supply remained stable, andproduction was not affected by raw material shortages.

protection mechanism to create a good atmosphere for supply chain cooperationand persist in joint development and growth with a wide range of qualifiedsuppliers to build a harmonious supply chain ecosystem.

2.2.4 Responsible Mining Procurement

The Company has formulated the Conflict Minerals Procurement Policy in accordance withthe Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected andHigh-Risk Areas of the Organisation for Economic Cooperation and Development (OECD) andother applicable standards, to establish a sound responsible mining due diligence managementsystem. We have developed clear and transparent management procedures for the use of mineralresources in the production and operation process to identify and manage potential risks, committingto using no “conflict minerals” from areas controlled by armed groups perpetrating crimes againsthumanity in the Democratic Republic of the Congo or adjoining countries/regions. We alsocommitted to tracing the sources of gold (Au), tantalum (Ta), tin (Sn), tungsten (W), etc. in allproducts to ensure the legality of raw material sources, insisting on ethical procurement.

? Promotion and Implementation of Conflict Minerals Procurement Policy

As driven by the Company, each business segments communicate the conflict minerals policyto direct suppliers through multiple channels. The Company has required suppliers to sign the

Commitment Letter for Not Using Conflict Minerals and incorporated mineral resource managementregulations into contracts and agreements signed with suppliers. Moreover, the Company alsoconducts responsible mining supply chain due diligence and requires all relevant suppliers to strictlyadhere to the commitment of not using mineral resources from conflict-affected areas. In addition,the Company’s various business segments encourage suppliers to establish policies for conflictminerals and require them to pass on this principle to their upstream suppliers.

The Company’s Conflict Minerals Procurement Policy and Commitment Letter for Not UsingConflict Minerals have been communicated to 100% of our suppliers.The responsible mining special training has covered 100% of the relevant suppliers.There were 2,149 suppliers that have undergone responsible mining due diligence and receivedqualified results.Suppliers signing the Commitment Letter for Not Using Conflict Minerals have accounted for100% of our suppliers.

? Responsible Supply Chain Management

The Company’s various business segments have formulated the conflict minerals investigationmanagement procedures to conduct responsible mining due diligence on suppliers. Suppliers arerequired to truthfully fill in and respond to the Conflict Minerals Reporting Template (CMRT)regarding the usage and sources of relevant minerals in the delivered products, and providesupporting materials to ensure the compliance and traceability of the procurement sources. TheCompany has established a supplier risk assessment and management process. It draws a supplychain map based on the KYC information collected from suppliers and identifies conflict-affectedand high-risk areas (CAHRA) risk based on information related to suppliers and supply chainsretrieved from public sources, formulating due diligence plans and carrying out supply chain duediligence investigations. Through these initiatives, the Company has promoted improvementmeasures, including requiring suppliers to eliminate non-compliant smelters and strengthen riskcontrol. If a supplier is at risk of conflict minerals, the supplier must immediately notify theCompany in writing and the Company will terminate the development or replace the supplier

involved in the conflict minerals.

During the reporting period, due diligence was conducted on all suppliers that should beincluded in the responsible mining due diligence scope, with 100% of supply chain enterprisesnot using illegal conflict minerals.

Responsible Mining Due Diligence Management Process

2.3 Impact, Risk, and Opportunity Management

DSBJ faces a variety of supply chain risks, including quality risks, hazardous substance risks,supply risks (such as supply interruptions and raw material shortages), financial risks (such as priceincreases and market changes), compliance risks (such as violations of laws and regulations andcompany policies), and ESG risks (such as labor rights, occupational health and safety, businessethics and anti-corruption, conflict minerals), among others. The Company’s internal managementnorms, such as the Supply Chain Management System and the Supplier Management Processes andStandards, as fully consider supply chain risks, and have conducted detailed risk control over eachlink in the supply chain.

According to requirements outlined in the Supplier Risk Assessment Procedures and theSupplier Risk Management Control Procedures, the Company identifies and carefully evaluatesrelevant risks, including ESG risks, that may arise in the supply chain every year, so as to performin-depth analysis of specific mitigation measures against different types of suppliers. We alsodevelop an annual audit plan to evaluate and assess suppliers for stimulating their continuousimprovement, ensuring effective control of supply chain risks. For suppliers with high risks, theCompany will limit the supply quantities and stop purchasing new products, and develop alternatesuppliers. The Company continuously monitors and tracks the implementation of supplier riskmanagement measures and evaluates their effectiveness periodically.

2.4 Indicators and Targets

chain areeffectivelymanaged

3. Insisting on Quality for Continuous Improvement of ProductQuality and CompetitivenessSustainable Development Goals of the United Nations (SDGs)

3.1 Driven by Innovation

3.1.1 Governance

New quality productive forces, with innovation at its core, are the key driving force forenhancing the core competitiveness of the Company. With adherence to long-termism, DSBJcontinuously improves the technological innovation system, and accelerates the cultivation anddevelopment of new quality productive forces. The R&D departments of the Company’s variousdivisions plan research and development according to business needs, implement various tasks ofR&D innovation at the execution level, and collaborates closely and efficiently with sales,production, and other departments, ensuring advanced and applicable product R&D and technologyresearch through end-to-end cooperation from R&D to production to market promotion.

3.1.2 Strategy and Management Mechanism

With the mission of “building a better connected world for tomorrow”, DSBJ keeps pace withthe national major strategies and industry development trends. We, based on the market demand,continuously increase our R&D investment and strengthen R&D management to build cutting-edgetechnology platforms with more technology breakthroughs and accelerated applicationtransformations, thereby contributing to the industry’s innovative development.

3.1.2.1 Innovative R&D management

Based on accurate knowledge in customer needs, the R&D departments of the Company’svarious divisions have established comprehensive open R&D systems and efficient R&D innovationmechanisms to conduct innovative research covering various aspects, including materialdevelopment, structural design, electronic design and product application research. They keep pacewith technology frontiers to enhance independent innovation capabilities and solidify the foundationfor high-quality development.

Enhancedinnovationincentives

? Establishment of a Technology Innovation Platform

The Company has established a high-level and open technology innovation platform alongwith a comprehensive innovation system. Through collaboration with customers to conducttechnological innovation research and tackle key technical challenges, we have promoted researchinto key technologies and facilitated their transformation into practical applications, so as to providethe continuous driving force for the Company’s innovative development. Leveraging its extensivecorporate technical expertise, the Company has undertaken scientific research on key andchallenging process technologies within the industry. This effort has yielded numerous advancedresults, patents, and standards, all bearing independent intellectual property rights. Throughproactive promotion and application, the Company has successfully transformed these scientific andtechnological achievements into new quality productive forces. This ongoing endeavor leads to acontinuous technological innovation and product upgrades, creating sustained value for thedevelopment of the industry.

Province”;Suzhou Dongyue has been recognized as a “Suzhou Engineering Technology Research Center”.

Province”;Suzhou Dongyue has been recognized as a “Suzhou Engineering Technology Research Center”.

? Build an Innovative Talent Team

Building an innovative talent team is the cornerstone of technological innovation. Leveragingthe leadership of top-tier talent, the Company has established a global R&D team of technicalexperts known for their exceptional skills, extensive industry experience, and strong innovationcapacity. By fostering an open, inclusive, and results-driven research environment, the Companycontinues to strengthen its core technological R&D and independent innovation capabilities, fuelingits long-term growth with continuous innovation.

With more efforts continuously paid to the employment of high-end technology talents, theCompany has selected R&D talents who align with the Company’s values and possess excellentqualities, solid professional backgrounds, and high potential, to build professional R&D teamscovering three major business segments, namely, electronic circuit, photoelectric display, andprecision manufacturing. In addition, the Company provides comprehensive support for R&Dtalents, including dedicated one-on-one training, rewards and promotion aiming to particularlyoutstanding talents, who are deemed as the key training objects of their positions.

In addition to regular technical training organized by the Company, we invite suppliers, famousexperts and scholars to come to the Company for technical exchanges and lectures through internaltraining, seminars, and other forms and encourage employees to strengthen academic exchanges tohelp them grasp innovative technologies and industry trends. We also employ external industryexperts to be our R&D consultants to help improve the professional level of the technical staff,thereby achieving the independent research and development of the innovative core technologies.Furthermore, the Company actively conducts various forms of technical innovation activities suchas skills competitions to encourage employees to innovate in their positions and fosters aninnovative culture that encourages experimentation and tolerates failure throughout the Companyto help employees maintain the best state of continuous innovation and development. In 2024, allof the Company’s divisions carried out different forms of engineering skills competitions to helpengineers improve their technical skills and stimulate their innovation abilities.

3.1.2.2 Industry-Academia-Research Cooperation

The integration of industry, academia, and research is an important driving force for theCompany’s technological innovation. The Company actively engages in in-depth collaborationswith universities and scientific research institutions to accelerate the research and application ofcutting-edge technologies, thereby driving resource integration across the industrial chain andenhancing its competitiveness.

3.1.2.3 Technology Ethics

The Company complies with ethical norms in technology and advocates for cultivating socialresponsibility values. Drawing upon independent innovation and emphasizing the significance ofintellectual property rights, the Company prioritizes key technologies while upholding excellent

quality standards. We are committed to refraining from developing or utilizing scientific andtechnological products that pose harm to the natural environment, human health, public safety, orethical standards. Through the development of innovative and practical new products, technologies,and processes, we spare our efforts to contribute positively to social progress.With the widespread adoption of artificial intelligence applications, the Company hasdeveloped the Guidelines for Safe Artificial Intelligence Software Development Cycle, emphasizingethical compliance in the production of AI applications and the management of generated data toensure that AI outputs meet moral standards and respect privacy rights. For the use of generative AIproducts, we formulate and publish detailed usage policies, clearly requiring employees to adhereto social norms and company policies and strictly prohibiting the generation, replication, publication,or dissemination of any content that may violate laws and regulations, or that may be inappropriate,offensive, or discriminatory.

3.1.2.4 Protection of Intellectual Property Rights

The Company attaches great importance to the protection of intellectual property rights. Westrictly abides by the relevant laws and regulations, such as the Trademark Law of the People’sRepublic of China, the Patent Law of the People’s Republic of China and the Implementation Ruleson the Patent Law of the People’s Republic of China, and have formulated management systemssuch as the Intellectual Property Management Procedure and the Confidentiality Agreement tocomprehensively strengthen the creation, utilization, protection, and management of intellectualproperty rights and protects the related structural design, preparation methods, and process of coretechnologies. While safeguarding our independent intellectual property rights, we fully respect theintellectual property rights of others. We commit to avoiding infringement of others’ intellectualproperty rights, and conscientiously fulfilling confidentiality obligations, especially in technical andbusiness cooperation with partners. Without written permission, we disseminate no experimentalsamples, professional data, and technical indicators to any third parties. Through these initiatives,we have maintained a fair competition order to ensure the healthy development of the market.? Prevention and control of intellectual property infringement risks. To address the risk ofintellectual property infringement, the Company has established a mechanism for identifying

and warning intellectual property infringement risks and conducted comprehensiveassessments of potential infringement risks related to the Company’s innovative technologies.If it is detected that the potential risks are significant, the Company will mitigate potentialpatent infringement risks in R&D projects by adjusting other process technologies orcharacterization methods. Before submitting patent applications to the National IntellectualProperty Administration, it needs to conduct patent searches, and if there are similarities inpatents, core technology upgrades are initiated.? Enhancing intellectual property training. The Company places significant emphasis on

enhancing employees’ awareness of intellectual property protection. We conduct regularintellectual property training sessions to strengthen employees’ recognition and understandingof intellectual property protection by explaining relevant cases of intellectual propertyinfringement, thereby increasing employees’ awareness of confidentiality regarding theCompany’s key core technologies and core products.

3.1.3 Impact, Risk, and Opportunity Management

To effectively address various risks such as rapid technological iteration, market competitionrisks, intellectual property risks, and policy and regulatory risks, DSBJ emphasizes cross-functionalteamwork in R&D, marketing, and production, closely following market trends, technologicaltrends, and policy developments, to ensure that product development is closely aligned withcustomer needs, thereby enabling rapid response to market changes and reducing the risk ofdeviation in R&D innovation. Throughout the full lifecycle of R&D projects, the Companysystematically conducts risk identification, assessment, and monitoring, and dynamically adjustsR&D risk management strategy based on evolving internal and external conditions to ensurecontrollable risks across all R&D activities.

3.1.4 Indicators and Targets

Increased number of patentapplications and grants

3.2 Quality Priority

3.2.1 Governance

As excellent product quality is the cornerstone of industrial development, the Companycontinuously strives to deliver products of the utmost quality and reliability. The Company hasestablished a product quality and safety working group, which is composed of various divisionquality management centers or quality departments of different business segments. This group isresponsible for the product quality management work of each business segment, includingformulating quality policies and objectives, and the construction, implementation, and continuousimprovement of the quality management system to ensure that each link meets quality standards. Atthe same time, the Company has established a cross-departmental collaboration mechanism andworks together with R&D, procurement, production, and other functional departments to ensure thathazardous substances in the Company’s products comply with applicable laws and regulations, andcustomer requirements.The Company has established a series of quality management policies in accordance withinternational standards such as ISO 9001, IATF 16949, AS 9100, ISO 13485, VDA 6.3, and ISO9004 in combination with customer audit requirements, which include the Quality ManagementManual, the Research and Development Cycle Management Procedure, the Incoming MaterialInspection Procedure, the Final Quality Inspection Procedure, the Non-conforming Product ControlProcedure, the Corrective and Preventive Action Procedure, the Customer Quality ComplaintHandling Procedure, etc.. With these quality management policies, we have ensured the highreliability and high consistency of products throughout their full lifecycle.

3.2.2 Strategy and Management Mechanism

DSBJ anchors its operations in customer needs. By integrating customer needs and high-

standard quality requirements into every phase of the business chain, namely, from product design,R&D, procurement, and production to sales and post-sales services, DSBJ has implemented strictquality risk management throughout the product lifecycle. We have achieved efficient and precisecontrol relying on an intelligent manufacturing system, ensuring the delivery of customer-satisfying,high-quality products.

The Company’s main production and operation bases have all obtained ISO9001 qualitymanagement system certification and IATF16949 quality management systemcertification.

3.2.2.1 Full Life Cycle Quality Management

environment, and measurement” to strengthen theprocess quality control through quality controlprocesses, thereby ensuring the reliability andconsistency of product quality.

Precision Manufacturing Division —Quality House Model

Management

? Quality Inspection System

In order to better prevent potential product safety and quality issues, the Company hasestablished a product and process reliability testing process and evaluation standards to achieve fullprocess product reliability risk management for technical elements, product development, and massproduction processes. We continuously improve quality standards and inspection procedures andconduct strict inspections on products in strict accordance with the requirements of the IncomingMaterial Inspection Operation Management Measures, the Process Inspection OperationManagement Measures, and the Product Inspection Control Procedures throughout the entirequality management process including incoming material inspection, intermediate productinspection, packaging material inspection, and product inspection. Through real-time trend analysisand monitoring of product inspection, we ensure that strict quality control is carried out at everystage from the entry of raw materials to the exit of products. For new or potential quality problems,we prioritize preventive testing solutions such as error prevention and equipment automation toensure that key quality elements are properly controlled.The Company has set up multiple laboratories equipped with advanced research and

development equipment and testing instruments to conduct adhesion tests, solvent resistance tests,hardness tests, impact resistance tests, salt spray tests, etc., to provide long-term services for newproduct research and development, mass production product quality control, and after-sales service.In terms of special testing, the Company has established long-term cooperative relationships withauthoritative and certified third-party laboratories and arranges to send third-party laboratories fortesting of items that cannot be accurately tested in-house or products that require test reports issuedby authoritative organizations.Products must pass through product safety and reliability tests before mass production andthose failure to pass through the tests shall receive continuous improvement until they are qualified,so as to ensure that the product meets customer acceptance testing requirements. Any problemsfound in the reliability testing process should be fed back to the production department forcontinuous review and improvement to ensure product quality and stability.

Key checkpoints for material and product inspection

requirements can be delivered and the finished productshave met the shipping requirements.

Reliabilitytesting

? Product Recall and Non-conforming Product Management

The Company has established the Product Recall Procedure and the Non-conforming ProductControl Procedure to standardize the management procedures for non-conforming products andclarify the responsible departments for each process to strictly control quality. If any defectiveproduct causes an accident, the Company will immediately take damage control measures to identifythe cause of the defect and completely eliminate the problem, and carry out review work in a timelymanner to make continuous improvement from both technical and management aspects to preventthe recurrence of quality incidents.

? Quality Culture for all Employees

The Company continues to strengthen its quality culture development by implementing annualquality training programs for all employees. These programs cover quality philosophy, qualitycontrol methods, and corrective action implementation, etc., to enhance all employees’ awarenessand competencies in quality management. Concurrently, we carry out diversified qualityimprovement initiatives and routinely disseminate quality management best practices in theCompany. Through various quality management promotion campaigns such as quality months,Quality Control Circles (QCC), etc., the Company has cultivated a cultural atmosphere of “everyonecares about high quality, everyone creates high quality, and everyone enjoys high quality”.

Quality training covers 100% of all quality-related employees.

quality work summaryand commendationconference to recognizefactories, teams, andindividuals withoutstandingcontributions, settingbenchmarks and rolemodels.

3.2.2.2 Product Chemical Safety

The Company is dedicated to minimizing environmental impacts associated with ouroperations. To address this, we have established a chemical safety working group responsible foradvancing chemical safety management issues such as chemical risk identification, hazardprevention, emergency response strategies, and the development of phase-out plans for hazardouschemicals. We have systematically catalogued and formulated a comprehensive list of chemicalsrequired for and resulting from our production processes. Additionally, we have implementedwhole-process management for the use of chemical substances throughout the entire process fromprocurement to the final stages of usage, so as to strictly manage hazardous chemical substancespresent in raw materials and products, and throughout the manufacturing processes. At the sametime, the Company has also set chemical safety-related targets and regulates the completion of thesetargets as an important part of management’s performance evaluation, to ensure the reduction ofchemical substances that affect human health and the environment in the Company’s productionoperations to a minimum.

? Commitment and Declaration

Hazardous Substances in Electrical and Electronic Equipment (RoHS) (including extendeddirectives), the EU Regulation on the Registration, Evaluation, Authorisation and Restrictionof Chemicals (REACH), the Norwegian Prohibition on Hazardous Substances in ConsumerProducts (PoHS), the International Electrotechnical Commission’s Standard on MaterialDeclaration for Products of and for the Electrotechnical Industry (IEC 62474), the CanadianProhibition of Certain Toxic Substances Regulations (SOR/2012-285), etc. We insist onproducing excellent products in line with green environmental protection norms and promisethat the content of hazardous substances in raw materials, parts, assemblies and finishedproducts in the Company has met the requirements of RoHS, REACH and other HSF laws andregulations as well as customer specifications. We also carry out investigations and third-partytesting for hazardous substance compliance according to the relevant standards, so as to ensurethat the products produced and manufactured by us are all in compliance with the requirements.Restricted Substance Commitment

100% of our products are in compliance with the latest regulations on restricted substances inproducts and customer specifications.

? Improvement of Hazardous Substance Control List

In accordance with laws and regulations, industry standards, and international conventions onhazardous chemical substance such as RoHS and REACH, the Company, combined with hazardoussubstance control specifications and management documents received from clients, has formulateda detailed and dynamically updated Hazardous Substance Control List to specify the restrictedchemical substances in use and manufacturing process. At the same time, the Company hasestablished elimination, replacement, or reduction plans for prohibited and restricted chemicals inthe Hazardous Substance Control List, strictly prohibiting the re-importation of phased-outsubstances into any production and non-production stage.

Hazardous Substance Control List

? Chemical Substance Control Management Throughout the Product Lifecycle

For chemicals involved in product design and manufacturing processes, the Company hasestablished a full lifecycle management system for hazardous substances in the products through aseries of toxic and hazardous substance and chemical management institutional norms developedby the Company, such as the Chemical Management Procedure, the Hazardous Substance RiskManagement Procedure, the Measures for Restriction of the Use of Hazardous Substances inElectrical and Electronic Products, and the Product Environmental Management Standards, toprevent and control potential risks of hazardous substances in products to ensure the safety.

When there are significant adjustments in relevant laws and regulations or company policies,

the Company will update and adjust the hazardous substance management regulations in a timelymanner and send them to all suppliers synchronously. The suppliers are required to fill in theHazardous Substance Evaluation & Declaration Report again and the Company will manage andaudit the suppliers according to the latest standards. The Company maintains a continual assessmentof the hazards associated with chemicals used across various stages of the product manufacturingprocess. We integrate environmental and health standards throughout all phases, from productdevelopment design to production, to establish a management mechanism together withimplemented action measures to prevent the use of hazardous substances. This initiative enables usto build a comprehensive hazardous substance management system to achieve comprehensiveoversight and control.

The Company regularly conducts chemical safety training. Employees are required to attendcorresponding training on environmental hazardous substance control to systematically learnRoHS basic knowledge and customer requirements, IECQ QC 080000 hazardous substanceprocess management, internal procedures for environmental hazardous substance control,chemical safety, and other knowledge. In addition, the Company actively maintains closecommunication with suppliers and partners, providing hazardous substance managementtraining to suppliers to ensure that they understand and comply with relevant standards andrequirements. DSBJ and its subsidiaries, namely, Dongshan Sheet Metal, Mutto Optronics,Yancheng Dongchuang, Multek Industries, Multek China Ltd., etc. have all been certifiedthrough the IECQ QC 080000 hazardous substance process management system.

Product Lifecycle Management

in the design of all material control drawings. Materials selected during theassessment phase must pass RoHS certification and provide third-party testreports such as MSDS/SGS simultaneously.

? Chemical Replacement

Under the long-term goal of gradually eliminating hazardous chemicals, the Company exploresimprovement opportunities in the management of restricted substances by continuously trackingdomestic and international legal and regulatory dynamics, and benchmarking the latest standardrequirements of mainstream customers. Moreover, the Company also promotes various businesssegments to formulate advanced hazardous substance phase-out plans, actively carrying outchemical reduction and substitution efforts.

Product hazardous substance reduction plan of Yancheng Dongchuang

Note: The allowable concentrations of hazardous substances for the above products are scheduledto be achieved in stages from 2025 to 2026.

from wet processes, while phasing out photosensitive inks minimizes volatile organic compoundemissions. These streamlined workflows further optimize facility space utilization.

from wet processes, while phasing out photosensitive inks minimizes volatile organic compoundemissions. These streamlined workflows further optimize facility space utilization.

3.2.3 Impact, Risk, and Opportunity Management

During the quality risk assessment process, DSBJ systematically identifies multiple potentialrisks, including design/R&D risks, raw material/supply chain risks, production/process risks,hazardous substance risks, and regulatory compliance risks. With continuously strengthened qualityrisk management, the Company promotes all business segments to establish internal institutionalnorms such as the Risk Management Rules for Quality Management System Process and theOrganizational Environment and Risk Control Procedure, clearly defining the processes of andrequirements for quality risk identification, analysis, evaluation, mitigation, and monitoring.Through various risk management tools, such as Advanced Product Quality Planning (APQP),Measurement System Analysis (MSA), In-Process Quality Control (IPQC), Statistical ProcessControl (SPC), Failure Mode and Effects Analysis (FMEA), Control Plans (CP), and ProductionPart Approval Process (PPAP), we have formulated corresponding control measures for differentlevels of quality risks, strictly controlling potential quality risks throughout the product lifecycle.To ensure the effective operation of the quality system, the Company has established acomprehensive quality audit mechanism, and encouraged all business segments to formulate the2024 audit plan, including internal quality audits, third-party system certification audits, andcustomer audit inspections. These initiatives can help us identify potential issues and non-conformity in a timely and accurate manner, ensuring the effectiveness of the quality managementsystem.In addition, the Company regularly conducts the identification, assessment, and control ofhazardous substance risks based on the overall risk management normative framework anddocuments such as the Hazardous Substance Risk Management Procedure and the Supplier’sHazardous Substance Management Procedure, in order to safeguard product quality and safety.

3.2.4 Indicators and Targets

substance

3.3 Professional Services

3.3.1 Customer Relationship Management

Guided by a customer-centric approach, DSBJ strives to provide customers withcomprehensive, one-stop, and technologically advanced solutions to meet their customized needs.We continuously the customer service system to ensure quick responses and efficient handling ofcustomer requests, thereby establishing a good and long-term relationship with customers.

? Quality Service

By deeply understanding the expectations and needs of our customers, we provide personalizedsolutions to customers and are committed to responding to customers with reliable services promptlythroughout the entire customer service process covering pre-sale, in-sale, and after-sale stages. Werender efficient, professional and high-quality services oriented towards customer needs.

of customer order-related information, enhancing the efficiency andaccuracy of customer service.

? Customer Complaint Management

The Company values customers’ opinions and feedback and drives various business segmentsto improve their customer complaint management. The Company has formulated a series ofinstitutional documents, such as the Customer Complaint Handling Process, the CustomerComplaint Handling Process Management Measures to establish an efficient response andprocessing mechanism. For customers’ feedback, we have carried out an analysis and made activerectifications to ensure that our solution can meet the requirements of the customers.

Complaint Handling Process

detailed records of customercomplaints and solutions.

detailed records of customercomplaints and solutions.

Customer complaint response rate is 100%Customer complaint resolution rate is 100%

? Customer Satisfaction Management

The Company mandates all business segments to establish an institutional frameworkcomposed of the Customer Satisfaction Management Procedures, the Service Delivery andCustomer Satisfaction Management Procedures, and the Customer Satisfaction Monitoring andMeasurement Guidelines, etc. We conduct regular customer satisfaction surveys across keyfunctional areas such as procurement, quality assurance, engineering, technical support, andcustomer service, and make systematic customer follow-ups according to findings from thesesurveys, enabling timely identification of issues and implementation of targeted improvementmeasures to continuously enhance product and service quality.

3.3.2 Responsible Marketing

With adherence to a scientific, rigorous, and responsible marketing promotion concept, DSBJstrictly complies with the Consumer Rights Protection Law of the People’s Republic of China, theAnti-Unfair Competition Law of the People’s Republic of China, the Advertising Law of the People’sRepublic of China and other laws and regulations and relevant provisions. We have formulated aseries of institutional norms, such as the Sales Management System, the Market DevelopmentManagement Specifications, and the Project Operation Management Specifications, which provideaccurate and comprehensive information in market development, customer sales, and productlabeling management, ensuring that products are promoted in an ethical, scientific, and objective

manner.

? Marketing Compliance Management

The Company continues to improve the responsible marketing compliance managementsystem and clarifies marketing compliance responsibilities and processes. In the marketingpromotion process, with strict adherence to anti-unfair competition and anti-monopoly requirements,all promotional information should be accurate, clarified, and transparent, and any violations inmarketing activities should be promptly addressed. In accordance with the Code of Business Ethicsand other documents, it is clearly provided that, when employees expand business and engage incommercial activities, they should comply with relevant national laws and regulations and theCompany’s code of ethics and conduct external business activities in accordance with theCompany’s procedures and disciplines.

? Marketing Review Management

The Company establishes a standard process for product information generation and review toensure all information is verified. With a multi-party review mechanism established, productinformation is required to be reviewed by R&D, quality, legal, marketing, and other departments toensure accuracy and compliance, and free of any false, exaggerated, or misleading information. Ifnecessary, third-party organizations will be introduced for independent reviews to ensure theinformation is objective and accurate.

? Responsible Marketing Training

The Company promotes each business segment to formulate an annual responsible marketingtraining plan. Yancheng Dongshan and MFLEX Electronics regularly conduct specialized trainingfor marketing personnel on product knowledge, responsible marketing-related regulations, customercommunication, business ethics, etc. Through these initiatives, we can ensure that our employeesaccurately understand and convey product information, and are aware of and subject to relatedprinciples and regulations, so as to achieve ethical, scientific, and precise communication.

4. Advancing a Clean and Low-Carbon Production System for a

Greener Future

Sustainable Development Goals of the United Nations(SDGs)

4.1 Environmental Management

Under the principle of prioritizing environmental protection, the Company integrates theconcept of green development into its operations to minimize the impact on the environment whileenhancing the Company’s competitiveness, so as to achieve a win-win situation between economicbenefits and environmental protection.

? Environmental Management System

The Company strictly complies with environmental protection laws and regulations such as theEnvironmental Protection Law of the People’s Republic of China, the Air Pollution Prevention andControl Law of the People’s Republic of China, the Energy Conservation Law of the People’sRepublic of China, the Water Pollution Prevention and Control Law of the People’s Republic ofChina, and the Solid Waste Pollution Prevention and Control Law of the People’s Republic of China,and continuously improves the environmental management system in accordance with therequirements of standards such as ISO 14001 environmental management system and ISO 50001energy management system. The Company has set up an EHS working group composed ofemployees from the company headquarters and each division EHS department, responsible forcoordinating, promoting, and supervising various business segments to plan and implement EHS

programs and objectives. The Company’s EHS management system covers 100% of all relevantbusiness segments.Each business segment of the Company formulates a series of institutional norms such as EHSmanuals, environmental management manuals, and related management procedures, and setsenvironmental management goals according to its own situation, such as zero environmentalaccidents, meeting emission standards, carbon reduction targets, etc. These goals are then separatedand cascaded down to relevant departments, the completion of which is linked to the performanceevaluation of relevant management personnel (in the form of a veto item, regular assessment item,bonus item).

MFLEX Suzhou has been awarded the title of Jiangsu Province Green Factory and that ofJiangsu Province Green Development Leading Enterprise; and Multek Industries has beenawarded the title of Guangdong Province Green Factory.Multek China Ltd., Multek Industries, Multek Electronics, and Multek Technology have beenrecognized as the “2023 Advanced Enterprise in Green Manufacturing and EnvironmentalProtection”.MFLEX Yancheng, Multek China Ltd., and Multek Industries have passed the cleanproduction audit.

MFLEX Suzhou has been awarded the title of Jiangsu Province Green Factory and that ofJiangsu Province Green Development Leading Enterprise; and Multek Industries has beenawarded the title of Guangdong Province Green Factory.Multek China Ltd., Multek Industries, Multek Electronics, and Multek Technology have beenrecognized as the “2023 Advanced Enterprise in Green Manufacturing and EnvironmentalProtection”.MFLEX Yancheng, Multek China Ltd., and Multek Industries have passed the cleanproduction audit.

? Environmental Risk Prevention and Control

The Company continuously improves the environmental risk control mechanism incombination with the requirements of the ISO 14001 environmental management system. Weactively promote environmental impact assessments and hidden danger inspections in key plants,clarifying environmental factors that can be controlled and influenced in activities, products, andservices, and supervising, following and managing their environmental impacts from a lifecycleperspective. We promote various production and operation entities to enhance environmentalemergency management, formulate special plans for emergency environmental incidents andconduct special emergency drills, in order to improve their emergency response capabilities forenvironmental incidents to minimize environmental impacts.

? Environmental Audit

DSBJ has established an internal EHS audit mechanism to conduct regular environmentalaudits across all production units. The audit scope primarily covers, among others, EHS compliance,the operation status of pollutant treatment facilities, discharge of wastewater, waste gas, and solidwaste, waste storage and disposal practices, storage and usage of hazardous chemicals,environmental hazard investigations, emergency response plans and emergency drills. The auditingmethods include headquarters audits (quarterly), strict self-inspection by subordinate enterprises,and self-monitoring conducted by accredited third-party testing companies as needed. In addition,all operational bases regularly cooperate with regulatory authorities and external stakeholders tocarry out external environmental audits. The Company sets rectification deadlines based on the

severity of audit findings, with dedicated departments continuously tracking corrective actions toensure the applicability and effectiveness of the environmental management system.

? Environmental Protection Training

The Company regularly conducts special training activities on environmental protection,organizing employees to learn about environmental laws and regulations, standards, systems, andthe implementation of environmental management through various forms, so as to help employeesenhance awareness and capabilities in environmental protection. During the reporting period, theenvironmental protection training covered 100% of the main operating bases.

4.2 Addressing Climate Change

4.2.1 Governance

DSBJ establishes a sound governance structure to continuously improve the identification,

assessment, management, and disclosure of climate risks and opportunities. The Board of Directorsassumes a leadership role in the management of and decision-making on climate change issues. Itis responsible for reviewing the assessment of ESG-related risks and opportunities, includingclimate change issues, and approving climate-related plans, targets and response programs andoverseeing their implementation. The EHS working group is responsible for assessing and analyzingclimate change risks and opportunities, formulating strategic goals and implementation plans toaddress climate change, and promoting the practice of relevant work through closed-loopmanagement. This working group also regularly collects and tracks climate change-related data andtarget progress.

4.2.2 Strategy and Management Mechanism

After fully analyzing the risks and opportunities brought by climate change, DSBJ hasintegrated climate action into its corporate strategic decision-making. We incorporate green andlow-carbon requirements throughout the entire project lifecycle - from planning and construction tooperation - while promoting green transformation to strengthen climate resilience.

Category

Category

Category

4.2.2.1 Clean Technology Opportunities

Upholding the concept of green development, DSBJ has established a core strategic focus onthe dual drivers of “consumer electronics + new energy” by integrating clean technology innovationinto the company strategy. Under this strategy, we are fully concentrating on the two core tracks:

consumer electronics and new energy. While steadily advancing its consumer electronics business,the Company leverages its technological expertise accumulated in consumer electronics andcommunication equipment to deeply expand into industries like new energy vehicle corecomponents. With continuous innovative research and development in the field of new energyvehicle components, we have established an industrial development framework centered onconsumer electronics and new energy vehicles, striding confidently toward a new era of green andhigh-quality development.

In recent years, the Company has accelerated its new energy business through a series ofstrategic layouts, including supplying new energy vehicle clients with electronic circuit products(FPC and rigid boards), vehicle displays, and functional structural components. Our acquisition offoreign enterprises such as Aranda, AutoTech US, and AutoTech Mexico, further consolidates thecooperative relationship with new energy vehicle and energy storage clients in North America. Asthe overseas production base in Mexico and the new energy vehicle component production base inKunshan City have officially commenced operation, the synergy effects of the Company’s industrialchain continue to strengthen, providing more product solutions for customers in the new energyvehicle industry. In addition, the Company is actively laying out in the energy storage field,continuously expanding its product line to meet the market demand for high-performance batterymanagement systems.

In 2024, DSBJ made significant progress in the fields of new energy such as new energyvehicles and energy storage business. The Company’s core business, electronic circuits, achievedsales revenue of RMB 24.8 billion. The new energy business realized a revenue of approximatelyRMB 8.65 billion with a year-on-year increase of 36.98%, accounting for about 23.52% of totalrevenue. Therefore, it has become a new growth driver for the Company’s high-quality development.In the future, the Company will continue to align its R&D and production expansion with the high-

end consumer electronics and new energy sectors, continuously diversifying product portfolios andsolution offerings to contribute to the advancement of the global new energy industry.While expanding into the green industry, the Company is also committed to providing moreenvironmentally friendly high-quality products. By increasing the R&D and promotion of cleantechnologies, the Company actively applies new materials, new equipment, new processes and newtechnologies to provide more environmentally friendly solutions for the industry.

4.2.2.2 Low Carbon Operations

In active response to the national “dual carbon” initiative, the Company proactively formulatescarbon neutrality goals and pathway planning and progressively drives all divisions to improveenergy management frameworks and develop energy management target plans. We conserve energyand reduce emissions from three perspectives, namely, management-driven energy conservation,technological energy conservation, and energy structure optimization, to continuously enhancecorporate energy management capabilities to achieve low-carbon operations.

The parent company of DSBJ and MFLEX Suzhou, MFLEX Yancheng, Multek Industries,Multek China Ltd., JDI Electronics, Mutto Optronics have all passed the ISO 50001 energymanagement system certification.MFLEX, Multek, JDI Electronics, Mutto Optronics have all passed the ISO 14064 GreenhouseGas verification.MFLEX Suzhou and Multek Industries have all passed the ISO 14067 carbon footprintcertification.

energy conservation team to conduct energy-saving audits and managereview meetings for regular evaluation of energy management goals to ensuretheir steady progress.

in output energy consumption compared to 2023

4.2.3 Impact, Risk, and Opportunity Management

DSBJ has established a process and framework for managing climate risks and opportunitiesto identify, analyze, evaluate, and clearly understand the scope of climate change risks andopportunities, thereby enhancing climate resilience.

4.2.4 Indicators and Targets

emissions

4.3 Resource Utilization and Circular Economy

4.3.1 Water Resources Management

The Company’s water resources mainly come from the municipal water supply. The mainproduction and operation sites with large water consumption are located in areas with lower waterresource risk levels. The Company has formulated water management procedures, and the EHSManagement Committee of each division is responsible for the coordination and supervision ofwater resources management. We promote the establishment of water-saving teams/appointment ofwater-saving specialists in key plants and formulate annual water-saving plans and implementationschemes to minimize water consumption and promote the sustainable use of water resources. Duringthe reporting period, the Company experienced no major violations related to water resources.? Water balance analysis. We conduct water balance analysis to measure and analyze the supply,use, and discharge of water during the factory production process, and formulate targeted measuresto improve water resource utilization rates. As of the end of the reporting period, MFLEX, Multek,and JDI Electronics have all carried out water balance analysis.? Water conservation. We formulate a water consumption quota plan and monitor and followup on the monthly water consumption situation to find out the weak links and strengthen the dailywater conservation management. We regularly maintain and manage the water consumptionequipment through water-saving facilities and appliances, such as installing sensor water-savingcontrollers in the sheet metal plant of the Precision Manufacturing Division, to eliminate thephenomenon of water leakage, drip and spill. We also carry out water conservation publicityactivities with enhanced water conservation publicity efforts to advocate the water conservationtrend.

? Water recycling. The Company actively promotes water recycling technology in productionoperations. We renovate and upgrade recycling water treatment facilities for collecting, treating, andreusing production wastewater to improve water resource utilization efficiency and reduce theimpact of wastewater discharge on surrounding water bodies. We retrofit or construct rainwaterreuse irrigation systems on production and operation sites, purifying and treating collected rainwaterfor greening, cleaning, and other non-potable uses, so as to reduce the reliance on municipal watersupply.? Water risk reduction. During the selection process for new project investments, we, with fullconsideration of water resource risks, constantly monitor the risk of water shortages and assess wateruse strategies to ensure that the water supply can guarantee necessary production operations.

System” is implemented for utilizing conductivity control technology to enable waterrecycling within production line tanks, with an annual water circulation volume of1,000,000 tons.

4.3.2 Green Packaging

DSBJ promotes the reduction of packaging materials throughout the product lifecycle inpackaging design, production, transportation, and sales stages through internal recycling and

resource recovery and reuse methods, reducing the use of natural resources and the impact on theecological environment.

Case: MFLEX implements tray recycling managementIn the SMT (Surface Mount Technology) process, plastic trays are extensively used to carryflexible circuit boards (FCBs). MFLEX, targeting “resource circularity”, designed and advanceda tray recycling and reuse model. After transporting FCBs to the stamping process, trays undergovisual inspections for cavity integrity and structural stability of support pillars, and the qualifiedtrays are reused for the next batch of FCB loading. Accordingly, a closed-loop managementsystem of “use-inspection-return” is established, which can achieve cost reduction, efficiencyimprovement, and green development.

4.4 Pollution Prevention and Ecosystem Protection

4.4.1 Emissions and Waste Management

The Company complies with relevant laws and regulations such as the Law of the People’sRepublic of China on the Prevention and Control of Water Pollution, the Law of the People’sRepublic of China on the Prevention and Control of Environmental Pollution by Solid Waste, andthe Law of the People’s Republic of China on the Prevention and Control of Air Pollution, as wellas local emission standards. We have established the “Three Wastes” Management Policy, theHazardous Waste Management Policy and other relevant management procedure documents, and acomprehensive “three wastes” emission monitoring and control system involving various businesssegments. We minimize the impact of emissions on the environment under the principle of“reduction, recycling and re-utilization” on the basis of ensuring compliance with emissionsstandards. During the reporting period, the Company encountered no incidents of exceedingpollutant standards or illegal discharge of exhaust gas and wastewater, nor any illegal violationsrelated to waste disposal.

100% compliance rate of hazardous waste disposal

100% compliance rate of hazardous waste disposal

4.4.1.1 Wastewater Discharge Management

The Company’s wastewater mainly comes from domestic sewage and industrial workshopwastewater. The Company has established targeted system guidelines such as the Water PollutionControl Management Benchmark, to regulate wastewater discharge control, treatment processes,monitoring, emergency management, etc. Domestic sewage is discharged into the municipal sewagenetwork, while production wastewater is discharged into the comprehensive wastewater treatmentsystem after meeting the standards through processes such as coagulation, precipitation,biochemical treatment, MBR membrane filtration, etc.. The wastewater discharge at major operatingbases is monitored by internal management personnel and third-party personnel. The Companyoptimizes the wastewater treatment process based on different production conditions to enhance theeffectiveness of pollutant treatment. We install online pollutant monitoring systems at dischargeoutlets for connecting with national, provincial, and municipal environmental protectiondepartments to jointly monitor the discharge of wastewater, including flow rate, pH value, chemicaloxygen demand, ammonia nitrogen, etc.

waste in surface treatment tanks, which successfully reduced the waste liquid in surfacetreatment tanks by over 80%, thereby effectively decreasing the amount of hazardous waste tobe treated. It also installed a high-temperature evaporation system at the water treatment station,which greatly reduced environmental pollution and improved the recycling rate of waterresources due to achieving “net zero discharge” for the entire water treatment station.

waste in surface treatment tanks, which successfully reduced the waste liquid in surfacetreatment tanks by over 80%, thereby effectively decreasing the amount of hazardous waste tobe treated. It also installed a high-temperature evaporation system at the water treatment station,which greatly reduced environmental pollution and improved the recycling rate of waterresources due to achieving “net zero discharge” for the entire water treatment station.

4.4.1.2 Exhaust Emission Management

Types of exhaust emissions mainly include volatile organic compounds, hydrogen chloride,sulfuric acid mist, hydrogen cyanide, nitrogen oxides, particulate matter, etc., generated during theproduction process. The Company strictly complies with relevant laws, regulations, and standardssuch as the Law of the People’s Republic of China on the Prevention and Control of Air Pollution.All exhaust emission outlets are designed and installed in accordance with national standards. Theexhaust gases are emitted into the atmosphere through high exhaust pipes after being treated byhigh-efficiency air filters. Exhaust emissions at major operating bases are monitored by internalmanagement personnel and third-party agencies to ensure emission compliance. We continuouslyoptimize environmental treatment processes and upgrade high-efficiency end treatment devices tofurther reduce exhaust emissions on the basis of emission compliance.

implemented efficient treatment plans for different types of exhaust gases. In terms of exhaustgas treatment in the electrophoresis line, targeted treatment processes are used according to thetype of exhaust gas to ensure compliance with discharge standards. Meanwhile, the DongyuePlant also accurately calculates exhaust gas flow rate and fully considers the needs of exhaust gastreatment when selecting and designing equipment such as spray towers to ensure the stability ofthe treatment effect. In terms of exhaust gas treatment in the welding workshop, a cartridge dustcollector is used for treatment. The exhaust gas is divided into three streams based on the layoutof the workstations and introduced into different cartridge dust collectors. After treatment, thegases are collected and discharged through the exhaust chimney. The cartridges used in thetreatment are made of nano flame-retardant filter material, so as to ensure system safety whileachieving efficient dust removal.

Waste gas treatment device

implemented efficient treatment plans for different types of exhaust gases. In terms of exhaustgas treatment in the electrophoresis line, targeted treatment processes are used according to thetype of exhaust gas to ensure compliance with discharge standards. Meanwhile, the DongyuePlant also accurately calculates exhaust gas flow rate and fully considers the needs of exhaust gastreatment when selecting and designing equipment such as spray towers to ensure the stability ofthe treatment effect. In terms of exhaust gas treatment in the welding workshop, a cartridge dustcollector is used for treatment. The exhaust gas is divided into three streams based on the layoutof the workstations and introduced into different cartridge dust collectors. After treatment, thegases are collected and discharged through the exhaust chimney. The cartridges used in thetreatment are made of nano flame-retardant filter material, so as to ensure system safety whileachieving efficient dust removal.

Waste gas treatment device

Particulate matter (PM) emissions

4.4.1.3 Waste Emission Management

The waste generated by the Company is divided into two categories: non-hazardous waste andhazardous waste. Non-hazardous waste mainly includes household garbage, waste plastics, wastepaper, waste textiles, etc., while hazardous waste mainly includes sludge, waste printed circuitboards and scraps, dry film residue, and contaminated waste (filter cores, empty barrels, ink cans,etc.). The Company strictly complies with relevant laws and regulations such as the Law on thePrevention and Control of Environmental Pollution by Solid Wastes and the Measures for theAdministration of the Transfer of Hazardous Waste. In accordance with guidelines such as the WasteManagement Benchmark, the Hazardous Waste Management Plan, and the Benchmarks forSelection of Contractors for Waste Treatment, we have established strict waste treatment processesand safety operating procedures, clearly defined qualification standards for waste contractors, andregularly organize EHS personnel to assess the operation of waste to ensure its harmlessness.Through these initiatives, we may minimize the impact of waste on the environment and humanhealth.

recycled by qualified agencies under entrustment.

recycled by qualified agencies under entrustment.

Adhering to the principle of “reduction, reutilization and harmlessness of solid waste”, theCompany promotes the process of solid waste reduction and minimizes the generation of wastethrough the optimization of production processes and resource recycling.

MFLEX Suzhou was awarded the title of “Waste-Free Factory in Suzhou City”Multek Industries was enlisted in the “Waste-Free City Cell” in Zhuhai CityMFLEX Suzhou has obtained the highest Platinum-level Certification of the UL2799 Net ZeroWaste to Landfill Program

Management Operation Guidelines. In 2024, MFLEX Suzhou’s plant achieved a 98.26%comprehensive utilization rate for general industrial solid waste and an 83.56% utilization ratefor hazardous waste, ranking among the industry’s highest benchmarks. MFLEX Suzhou wasawarded the title of “Waste-Free Factory in Suzhou City” and certified by the highest Platinum-level Certification of the UL2799 Net Zero Waste to Landfill Program? In terms of source reduction, MFLEX Suzhou has continuously introduced advancedequipment over the years. The centrifuge dryer introduced for dehydrating hazardouswaste filter elements has effectively reduced dry film residues and waste filter elements byapproximately 50%, equivalent to 700 tons per year. And the sludge dryer newly installedfor low-temperature drying of copper-containing sludge and nickel-containing sludge hassignificantly reduced sludge’s moisture content from ~65% to ~35%, achieving an annualsludge reduction of approximately 3,000 tons.? In terms of resource recycling, cowhide paper and pads used in production are reusedmultiple times. Especially, by using undamaged cowhide paper from the laminationprocess in the copper plating process, MFLEX Suzhou reused approximately 600 tons ofcowhide paper annually.? In the waste disposal phase, MFLEX Suzhou has strictly controlled the waste disposal andentrusts a third party that does not dispose of solid waste by landfill methods to dispose ofour waste, fundamentally eliminating landfill treatment and successfully achieving zerowaste to landfills.

Management Operation Guidelines. In 2024, MFLEX Suzhou’s plant achieved a 98.26%comprehensive utilization rate for general industrial solid waste and an 83.56% utilization ratefor hazardous waste, ranking among the industry’s highest benchmarks. MFLEX Suzhou wasawarded the title of “Waste-Free Factory in Suzhou City” and certified by the highest Platinum-level Certification of the UL2799 Net Zero Waste to Landfill Program? In terms of source reduction, MFLEX Suzhou has continuously introduced advancedequipment over the years. The centrifuge dryer introduced for dehydrating hazardouswaste filter elements has effectively reduced dry film residues and waste filter elements byapproximately 50%, equivalent to 700 tons per year. And the sludge dryer newly installedfor low-temperature drying of copper-containing sludge and nickel-containing sludge hassignificantly reduced sludge’s moisture content from ~65% to ~35%, achieving an annualsludge reduction of approximately 3,000 tons.? In terms of resource recycling, cowhide paper and pads used in production are reusedmultiple times. Especially, by using undamaged cowhide paper from the laminationprocess in the copper plating process, MFLEX Suzhou reused approximately 600 tons ofcowhide paper annually.? In the waste disposal phase, MFLEX Suzhou has strictly controlled the waste disposal andentrusts a third party that does not dispose of solid waste by landfill methods to dispose ofour waste, fundamentally eliminating landfill treatment and successfully achieving zerowaste to landfills.

Amount of recycled hazardous waste

4.4.2 Biodiversity Conservation

In strict accordance with national and local laws and regulations on biodiversity conservation,the Company carries out a series of practical initiatives that emphasize the biodiversity conservationconcept throughout all phases of projects including planning, design, construction and operation toprotect the ecological stability and biodiversity of the operation site. During the project planningand design phase, the Company conducts a comprehensive investigation and assessment of thesurrounding ecological environment under environmental protection requirements, fullyunderstanding the characteristics and distribution of local biodiversity to avoid selecting sites thatmay have adverse effects on the environment, with an environmental impact assessment reportawarded for the project in accordance with regulations. During the project construction phase, theCompany minimizes the impact on local vegetation, soil, and water by establishing constructionprotection measures and restricting the construction areas. During the project operation phase, theCompany conducts continuous environmental monitoring and regular collection and analysis ofenvironmental indicators such as air quality, water quality, and soil quality to identify and solvepotential problems in a timely manner and actively engage in ecological restoration and protection.

Multek launched biodiversity advocacy campaigns on International Biodiversity Day in 2024

5. Working Together for a Better Future Based on People OrientedPhilosophySustainable Development Goals of the United Nations (SDGs)

5.1 Labor and Human Rights Management

5.1.1 Governance

DSBJ strictly complies with international human rights norms, such as the Ten Principles ofthe UN Global Compact, the Universal Declaration of Human Rights, and ILO Declaration onFundamental Principles and Rights at Work, as well as local laws and regulations in its operatingregions, and has established a comprehensive labor and human rights governance system. The ESGManagement Committee regularly reviews major issues related to labor and human rightsmanagement and approves major labor and human rights management plans and targets. The HumanResources Working Group (composed of the HR department at headquarters and the HRmanagement departments from various divisions) collaborates with the EHS Working Group(composed of the EHS departments at headquarters and from various divisions) to jointly promotethe implementation of labor and human rights management topics, and monitor and continuouslyimprove the work progress. The Human Resources Working Group is responsible for ensuringemployee rights protection, such as prohibition of child labor and forced labor, collective bargaining,anti-discrimination, diversity inclusion, and compensation and benefits, while the EHS WorkingGroup is responsible for occupational health and safety management, working together across levelsand horizontally to create a harmonious and positive workplace ecosystem.

5.1.2 Strategy and Management Mechanism

DSBJ is committed to respecting the basic rights and interests of every employee and providingall employees with equal opportunities for work and development. The Company has established acomprehensive and complete labor and human rights management system. We have clarified thecode of conduct and requirements for employees, and taken various measures to prevent potentialhuman rights risks, so as to create a safe, reliable, harmonious and efficient working environment.

5.1.2.1 Compliance Hiring

The Company regulates the entire process of talent introduction. In the recruitment and hiringprocess, we implement the principles of open recruitment, equal competition, and selection of thebest candidates based on moral integrity and professional competence. All applicants who meet therequirements for the corresponding positions are eligible for interviews, without discrimination ongender, education, age, race, family status, religion, or cultural background. The Company prohibitschild labor and forced labor, ensuring compliance and fairness in talent recruitment. We strictlyinspect the recruitment and hiring processes, and encourage employees and applicants to report anyviolations of company policies or regulations through public channels. All reported violations willbe seriously investigated and dealt with, and corrective measures will be taken if necessary. Duringthe reporting period, the Company experienced no major labor disputes or incidents of child laboror forced labor, achieving 100% labor contract signing rate and 100% social insurance coverage forall employees.

Category

5.1.2.2 Respecting for Human Rights

DSBJ takes actions consistent with the Responsible Business Alliance (RBA) Code of Conductduring the operations and promotes various business segments to formulate norms such as the Codeof Business Ethics, the Code of Corporate Ethics, and the RBA Management Handbook, etc. Wealways respect and safeguard the legitimate rights and interests of all employees and business actionstakeholders, eliminating any form of infringement and violation of human rights, so as to ensurethat every employee enjoys a fair, democratic, and healthy working environment.The Company regularly conducts training related to labor and human rights policies, in orderto raise employees’ awareness and understanding of human rights issues. Multek conducts RBA &COC training for all employees annually, with 4,104 participants and a completion rate of 93.4% in2024. The Precision Manufacturing Division added the labor and human rights policy training intothe mandatory courses for new employees, training 14,160 participants in 2024, with a total of28,320 training hours and a completion rate of 100%.

Multek and Mutto Optronics have obtained the RBA VAP certificate from the ResponsibleBusiness Alliance.

Highlightedissues

Highlighted

issues

5.1.2.3 Employee Communication and Participation

The Company respects employees’ opinions and ideas, and is committed to providing smoothand diversified communication channels and establishing an open and healthy communicationmechanism to ensure that the voices of employees are heard and valued.

feedback platform, communication hotline,email, etc., to ensure that employees canfreely express their opinions and ideas.

? Appeal and protection mechanism

The Company has established internal rules and regulations such as the Employee AppealManagement Procedure, clarifying the entire process of handling employee appeals and reports andresponding promptly to issues raised by employees. Employee appeals will be handled andinvestigated by a dedicated team composed of the Human Resources Department, trade unionrepresentatives, etc. The Company encourages employees to file appeals in a timely manner whenfacing any unfair treatment or to report violations of human rights, and responds with solutions tothe appellant in writing within a specified time frame. The Company ensures that every reasonablecomplaint or report is received and independently investigated under the principle of confidentialityin a timely manner, and actively takes the necessary measures to protect the legitimate rights andinterests of bona fide whistleblowers to ensure that they are not subject to any negative repercussionsor retaliation as a result of making a report.

safeguard their legitimate rights and interests.

safeguard their legitimate rights and interests.

5.1.2.4 Occupational Health and Safety

In strict accordance with laws and regulations such as the Safety Production Law of thePeople’s Republic of China, the Law of the People’s Republic of China on the Prevention andControl of Occupational Diseases, the Fire Protection Law of the People’s Republic of China andthe Regulations on Supervision and Management of Occupational Health in the Workplace, as wellas the requirements of the ISO 45001 management system, DSBJ has established an environment,health and safety (EHS) management system and formulated multiple management policies andnorms such as the Occupational Health Management System and the Safety ProductionManagement Procedures, which cover all employees, contractors, and specific suppliers. Theannual health and safety goals are incorporated into the performance assessments of the relevantresponsible personnel to ensure the comprehensive implementation of health and safetymanagement requirements.

Investment in health and safety amounted to RMB 64.9536 millionAll major production and operation entities of the Company have passed the ISO 45001occupational health and safety management system certification

? Construction of a Health and Safety Culture.

The Company focuses on building a health and safety culture. We regularly conduct specialtraining on health and safety based on the work requirements of employees to promote effectivesafety protection in their daily work. At the same time, the Company actively carries out activitiessuch as Safety Production Month and safety knowledge competitions to publicize the safety culture,in order to create a good cultural atmosphere where everyone speaks about safety and everyone isresponsible for safety. In 2024, we achieved 100% coverage of health and safety production training.

Knowledge competition in the safety

production month

? Occupational Health Management

Insisting on prioritizing employees’ health, the Company regularly assesses occupationaldisease hazard risks, and formulates and implements occupational disease hazard control measuresbased on risk levels to ensure the safety and health of employees’ working environment. Accordingto the list of occupationally hazardous positions, the Company carries out pre-job, on-job and off-job special medical check-ups for relevant employees and establishes health files. During thereporting period, no new confirmed or suspected occupational diseases were found.

? Chemical Management

The Company formulates the Dangerous Chemical Safety Management System, theManagement Measures for Easy-to-Make Drugs and Explosives and the Chemical ManagementProcedures in accordance with relevant national laws and regulations, industry standards, and

requirements of relevant parties on dangerous chemicals. We supervise and manage the entireprocess covering procurement, loading and unloading, use, production, storage, transportation, andpackaging of dangerous chemicals and regularly organize regular training for relevant personnel ondangerous chemicals. We also regularly conduct annual chemical leakage emergency response drillsto enhance the ability to respond to chemical leaks. Through these initiatives, we maximize theelimination, reduction or control of the impact of hazardous chemicals on the health and safety ofpersons.

Entire process management of chemicals

chemical inventory changes and installs a networked alarm system and infrareddetection system on-site. All these measures can contribute to ensuring thesafety of the requisition process.

DSBJ PTE. LTD. (the Mexican branch) conducted the training on chemical spill

prevention

DSBJ PTE. LTD. (the Mexican branch) conducted the training on chemical spill

prevention

? Contractor Safety Management

The Company’s health and safety management covers all activities of contractors in theCompany. We have implemented strict training, assessment access, and process monitoring forpartners conducting construction in designated zones, with detailed measures including signingsafety agreements, pre-entry safety education, personnel and equipment inspections, approval of on-site work protection, and identification and remediation of work hazards.

5.1.3 Risk and Opportunity Management

To effectively implement human rights policies and guidelines, the Company refers torequirements such as the Responsible Business Alliance (RBA) Code of Conduct to identify, assess,and manage human rights risks in operations, value chains, and investment and mergers andacquisitions. In accordance with risk identification, assessment, and management procedures, theCompany sets up human rights and labor management target indicator programs annually for somekey plants, and monitors the progress of these indicators monthly. In order to control risks moredeeply, risk assessments are conducted through reviews and audits, including regular RBA-basedself-assessments on human rights issues at key plants, customer social responsibility checks, or RBAaudit certifications, to review the completion and achievement of indicators such as the preventionof forced labor, prohibition of child labor, health and safety, and the protection of freedom ofassociation and collective bargaining rights. Audit results will be used to identify and address

potential human rights risks and issues, and continuously improve the human rights managementsystem. During the reporting period, the Company experienced no major incidents of labor andhuman rights risks.

Human rights due diligence process

In response to health and safety risks, the Company has implemented a dual preventionmechanism comprising risk assessment and hidden danger investigation and control to effectivelyreduce the probability and impact of safety incidents. We encourage key operating entities toestablish institutional norms for identifying, evaluating, and controlling risks associated withhazardous sources aligning with the requirements of ISO 45001, and conduct regular hazardidentification and risk assessment activities, resulting in the compilation of a safety riskclassification and control list based on assessment findings for comprehensive risk control. We

assess the level of hidden safety risks and set up a file in accordance with internal regulations andsystems such as the EHS Inspection and Hidden Danger Investigation and Control System toactively rectify hidden dangers.

5.1.4 Indicators and Targets

5.2 Human Capital Development

5.2.1 Governance

Talent is crucial to the sustainable development of the business. DSBJ continuously optimizesthe human resources management system to ensure its deep integration and precise alignment withthe Company’s overall strategy. The human resources working group, which consists of personnelfrom the human resources management departments of the Company’s headquarters and variousdivisions, is responsible for formulating and executing the Company’s human resources strategyand goals, promoting the implementation of human capital development topics, monitoring theprogress of the work and making continuous improvements. The Company’s headquarters and alldivisions have developed a series of institutional norms covering comprehensive dimensions suchas employee training, talent management, career advancement, performance management, andcompensation incentives, which contribute to the optimization of the Company’s talent structureand the enhancement of organizational competitiveness.

5.2.2 Strategy and Management Mechanism

DSBJ aligns its talent development strategy with corporate strategic objectives and businessgrowth directions. The Company continuously improves the competency model and the internal andexternal talent development system to create a continuous growth support system for employees’career lifecycle, so as to satisfy the Company’s strategy and business development needs forinterdisciplinary and high-quality specialized talents, thereby comprehensively supporting theimplementation of the Company’s strategy.

5.2.2.1 Talent Introduction

The Company remains dedicated to enhancing its talent development and management strategy.We conduct regular assessments of organizational needs and talent capabilities in alignment withthe Company’s strategic planning and business development direction, in order to plan a forward-looking talent layout and anticipate the recruitment demands proactively. Furthermore, we activelydiversify our talent recruitment channels to ensure accurate matching of recruitment resources.Through these initiatives, we have built a high-quality talent pool for the Company’s developmentin an all-round and multi-dimensional way.

Forward-lookinglayout

5.2.2.2 Employee Training

The Company has built a systematic talent training system aimed at all employees around“Three core initiatives, two teams, and one learning platform”, in order to strengthen the all-roundtraining of talents. The Company fully integrates internal and external training resources. We set upa rich and systematic training curriculum according to the different training needs of employees at

all levels, providing diverse and scientific training content to create a cultural atmosphere of “allemployees are learning constantly”. The training system covering new employees, key employees,and manager personnel at all levels helps employees achieve continuous growth throughout theircareers and continuously improve their professional competitiveness.

Mindsets; Employee Experience · DigitalEmpowerment · Efficiency Enhancement)

live broadcasting and classroom-based intensive training, so as to lay a solid foundation for theCompany’s talent cultivation. For example, the training named “Three steps to become a teacher:

improvement of lecturing skills” conducted by the Precision Manufacturing Division, is aimed athelping internal trainers understand trainees’ learning characteristics, master course interactionskills, and learn classroom management techniques.

live broadcasting and classroom-based intensive training, so as to lay a solid foundation for theCompany’s talent cultivation. For example, the training named “Three steps to become a teacher:

improvement of lecturing skills” conducted by the Precision Manufacturing Division, is aimed athelping internal trainers understand trainees’ learning characteristics, master course interactionskills, and learn classroom management techniques.

? New Employee Training

The Company provides targeted training for newly hired employees, helping them initiallyunderstand the Company’s development and various policies and systems through the combinationof theory and practice, to quickly integrate into the Company’s environment and master job skills.The Company also assigns instructors to guide and follow up on employees’ learning and progressat work, supporting them to continuously grow and improve.

professional competencies and job readiness, injecting new vitality into the Company.

professional competencies and job readiness, injecting new vitality into the Company.

? Leadership Training

In response to the Company’s development strategy and employees’ career development needs,we have developed a comprehensive hierarchical leadership training plan that encompassesleadership theory, team management, decision-making, communication skills, conflict resolution,and other aspects, providing opportunities for employees at different levels to develop leadershipskills and support their continuous learning and growth. The Company’s leadership trainingprogram spans the foresight reserve and enhancement of leadership for senior managers, middlemanagers, grassroots managers, and reserve management personnel. Our training initiatives aredesigned to assist managers at all levels, as well as the next generation of leaders, in understandingorganizational strategy, enhancing their management capabilities, and broadening their horizons.Through these efforts, we seek to cultivate leading talents capable of driving the high-qualitydevelopment of the Company.

Strategic thinking

making, and otheraspects.

leadership potential andinnovative abilitythrough professionalleadership developmentcourses.

? Professional Position Training

The professional position training aims to enhance employees’ knowledge and skills in theirprofessional fields. The training covers various business areas such as research and development,production, quality, EHS, sales, and human resources to ensure that employees master the latestprofessional knowledge and technologies and improve core skills and teamwork abilities, so as tobetter adapt to market changes and meet the development needs of the Company.

? External Joint Training

The Company actively provides external educational resources for employees, introducinghigh-quality and professional training resources internally while supporting employees toparticipate in external training and learning, so as to help employees keep up with the forefrontfields with continuous improvement. In 2024, the Company collaborated with multiple externalorganizations to carry out high-quality training programs to provide employees of different typeswith the knowledge and resources they need.

? Collaborating with other institutions for soft skills training covering critical thinking,conflict management, and more.

? Collaborating with other institutions for soft skills training covering critical thinking,conflict management, and more.

5.2.2.3 Employee Development

The Company continuously improves the competency model according to strategic planningand business development trends and provides employees with diverse career developmentopportunities and a broad stage for achievement of common development objectives betweenindividuals and the Company. Employees have achieved continuous growth throughout their careerlifecycle.

? Career Advancement

The Company continuously improves the competency model for various positions around itsstrategic goals and deeply integrates the model into performance management, recruitment,selection, training, and development processes to support the optimization of the talent managementsystem.

Acute Learning

Under the principles of organizational needs prioritization, emphasis on both moral characterand performance, orderly promotion, and promotion and demotion of employees based on theirperformance, the Company has established internal rules and regulations such as the PersonnelPromotion Management Measures related to career development to continuously improve the careeradvancement system. We establish clear dual channels composed of management and professionalcareer development based on employees’ own situation to realize the orderly and smooth flow oftalents horizontally and vertically through internal competition, job rotation, etc., so as to provideemployees with fair promotion and development opportunities. We help talents to continuouslyadvance in the workplace. At the same time, the Company regularly conducts talent review projectsto understand high-potential employees and the talent pool of key positions, and implementsassessments and promotions based on the talent review outcomes. In 2024, MFLEX, the TouchTechnology Division, and the Precision Manufacturing Division, etc. all carried out talent reviewprojects.

? Educational and Qualification Support

As encouraging employees to continuously deepen and improve their professional fields, theCompany provides sufficient support and guarantees for continuing education and careeradvancement, motivating employees to learn continuously to become the most competitive in theirpositions. The scope of re-education support covers 100% of formal employees.

Flexiblestudyleave

5.2.2.4 Salary Incentives

To attract, motivate, and retain outstanding talents, the Company continuously improves theemployee compensation and incentive system to ensure that all employees receive compensationcommensurate with their work performance.

? Diversified Incentives

Based on the “3P+1M” (Position, Person, Performance, and Market) compensation philosophy,the Company formulates scientifically and reasonable compensation and incentive program inaccordance with the DSBJ Assessment and Incentive Distribution Regulations and other relatedcompensation and incentive institutional norms. The Company has established the Assessment andIncentive Management Committee, which is chaired by the CEO, to review key assessment andincentive systems to ensure that employees receive fair and competitive compensation.

The Company’s employee compensation structure consists of fixed salary, performance pay,variable bonuses, and subsidies, in which the variable compensation is closely linked to performanceevaluation results. The variable compensation of senior managers is related to the Company’sperformance with the aim of encouraging them to bear more responsibilities in the Company’sdevelopment. The compensation structure of common employees includes a variable componentthat is linked to factors such as company performance, organizational performance, and individualperformance, with the aim of fully mobilizing employees’ enthusiasm for work. Through diverseincentive mechanisms, the Company has formed a comprehensive incentive distribution planincluding instant incentives, short-term incentives, and long-term incentives, which deeplyintegrates employees’ interests with the Company’s interests to establish a symbiotic win-winrelationship between employees and the organization.

incentives

? Performance Evaluation and Appeals

To ensure the fairness, impartiality, and objectivity of performance evaluation results, theCompany promotes each division to establish the annual performance assessment plan that alignswith its actual circumstances based on the Performance Evaluation Management Measures andrelated regulations. A standardized performance evaluation mechanism is established, with regularperformance assessments conducted through multi-dimensional and multi-tiered reviews tocomprehensively evaluate employees’ work performance and competencies. For example, theperformance evaluation of the Precision Manufacturing Division, which covers employee self-assessment, superior rating, departmental rating and grading, and center-level calibration, etc., hasrealized objective, comprehensive and scientific evaluation of employees. The HR Departmentreviews, consolidates, and provides feedback on evaluation results, and drives continuousimprovement of identified problems. For instance, Mutto Optronics has embedded performanceimprovement triggers into its performance evaluation mechanism, placing employees ranked in the

lowest performance tier for three consecutive months into a Performance Improvement Plan (PIP)to assist them in enhancing their skills and improving their work performance.Employees may file appeals to immediate supervisors or the HR department at a higher levelaccording to the Company’s performance complaint and feedback process if they have anydisagreement or lack clarity on performance evaluation results after receiving the feedback on theresults. When an appeal is submitted by an employee, the designated personnel will communicatewith the employee to understand the situation and timely deal with the appeal with feedbackprovided, so as to ensure procedural effectiveness and timely resolution.

5.2.2.5 Diversity and Opportunity Equality

DSBJ has integrated diversity and inclusion philosophy into team building, corporateoperations, and cultural development. The Company prioritizes attracting talents with diversebackgrounds and helping them adapt to the surroundings, providing equal opportunities andexpansive development platforms for all employees. By fostering respect, inclusivity, and opencommunication, the Company enhances employees’ collaborative efficiency and innovationcapabilities. The Company encourages employees to provide feedback on violations of diversityand inclusion principles through various channels and collects reasonable suggestions forcontinuous optimization and improvement of the Company’s related policies and measures. Todeepen employees' understanding of diversity and cultivate an inclusive workplace, the Companyconducts diversity and inclusion training annually based on our diversity policies. In 2024, Multek’sdiversity training reached 93.4% of employees, with explicit commitments to building andmaintaining a diverse, equitable, and inclusive environment that promotes cultural integration andteam cohesion. Additionally, the Company regularly organizes diversity activities that involve allemployees, encouraging them to actively express their opinions and embrace diverse perspectives,so as to enhance multicultural integration for higher team efficiency.

The Company upholds principles of equality and fairness across talent development,compensation and benefits, career advancement and other aspects. Management actively values andincorporates diverse perspectives to build a diversified and vibrant workforce team. For femaleemployees, the Company strictly complies with the Law of the People’s Republic of China on theProtection of Women’s Rights and Interests and the Special Provisions on Labor Protection forFemale Employees, ensuring that female employees are provided with equal career developmentopportunities and compensations and benefits, for which employees should be paid equally for equalwork regardless of their gender, and with unbiased training and promotion pathways to encourageand nurture them to take up key and managerial positions for exploring and expanding morepossibilities for career development. In addition, we provide comprehensive workplace rights andwelfare for female employees, including but not limited to paid prenatal check-up leave, maternityleave, paternity leave, breastfeeding leave, childcare leave, lactation rooms for breastfeeding femaleemployees, regular distribution of benefits for International Women's Day, health seminarsaddressing women-specific wellness topics and other activities that care for female employees, inorder to ensure that female employees can work with peace of mind and comfort. During thereporting period, female employees accounted for 17.8% of the Company’s senior management,and the return rate for childcare leave achieved 100% across the Company’s headquarters, DSG,Multek, the LED Division, the Touch Technology Division, and the Precision ManufacturingDivision.

The Company actively drives inclusive employment for persons with disabilities by providingjob opportunities, configuring accessible facilities, and enhancing communication, therebybroadening the career development path for disabled employees. Therefore, disabled employees canwin social respect and realize their self-worth through their own efforts.

such as “Employee Communication Meetings” and “Outdoor Expansion Activities” annually toenhance communication and interaction with disabled employees for a better understanding oftheir needs. In 2024, Multek employed 46 disabled employees.

With the acceleration of the business internationalization process, DSBJ is speeding up theimplementation of an international talent training program to cultivate international talents witheffective communication, resource mobilization, and problem-solving abilities overseas.

To enhance employees’ capabilities in cross-cultural communication and overseascompliance operations during the internationalization process, MFLEX established a cross-cultural talent training program and curriculum system in 2024, planning a three-yearprogressive training path from 2024 to 2026 to specifically improve employees’ cross-culturalabilities. With defined core intercultural competencies such as international perspective,business communication, international market rule, and international leadership, MFLEX hasdesigned a three-tier curriculum system composed of “Basic-Intermediate-Advanced” coursestargeting at three key roles: overseas business executives, headquarters liaison personnel, andexpatriate managers, in order to continuously cultivate more international talents for reserve.This curriculum system features a series of specialized courses, including Cross-CulturalAwareness, Cross-Cultural Conflict Management, Cross-Cultural Integration, Expatriate Stressand Emotional Management, Cross-Cultural Influence, and among others.

To enhance employees’ capabilities in cross-cultural communication and overseascompliance operations during the internationalization process, MFLEX established a cross-cultural talent training program and curriculum system in 2024, planning a three-yearprogressive training path from 2024 to 2026 to specifically improve employees’ cross-culturalabilities. With defined core intercultural competencies such as international perspective,business communication, international market rule, and international leadership, MFLEX hasdesigned a three-tier curriculum system composed of “Basic-Intermediate-Advanced” coursestargeting at three key roles: overseas business executives, headquarters liaison personnel, andexpatriate managers, in order to continuously cultivate more international talents for reserve.This curriculum system features a series of specialized courses, including Cross-CulturalAwareness, Cross-Cultural Conflict Management, Cross-Cultural Integration, Expatriate Stressand Emotional Management, Cross-Cultural Influence, and among others.

5.2.2.6 Vibrant Workplace

With great attention to human care for employees, the Company advocates for a balancebetween life and work and provides comprehensive welfare benefits for all employees. In additionto statutory basic benefits, the Company has provided employees with commercial insurance, paidleave, high-temperature subsidies, health examination, health lectures and consultations, holidaygifts, free meals, etc., to enhance employees’ sense of belonging and happiness. We pay attention tospecial employee groups such as pregnant women, disabled individuals, and families in difficulties,actively offer them economic assistance, welfare benefits, and care and warmth to create a warmand loving corporate atmosphere. We hold diverse employee activities to enrich employees’ leisurelives, helping them relieve work pressure to maintain a positive and upward work and life attitude.

The Company places high priority on employees’ mental health, continuously expanding thecoverage of its psychological support project under the employee assistance program (EAP) toprovide psychological assistance and support through multiple channels, including face-to-facecounseling and telephone consultations. These initiatives enable timely identification, prevention,and mitigation of crisis incidents, fostering a positive workplace environment. By the end of 2024,the EAP will have covered all employees at Multek Division. In addition, the Company actively

organizes seminars themed on mental health to continuously improve employees’ emotionalmanagement skills. During the reporting period, DSG conducted a series of lunchtime lecturesaddressing topics such as stress management, building positive relationships, and AI awareness,which empowered employees to better manage their physical and mental health.

The Touch Technology Division conductedteam leader employee activities

? Employee Satisfaction Management

To comprehensively understand employees’ workplace experiences and perceptions, theCompany conducts annual employee satisfaction surveys covering aspects such as workenvironment, career development, compensation and benefits, and corporate culture. Fordimensions with lower satisfaction, we have formulated improvement plans, which will serve asimportant references for the optimization of organizational management. The Companycontinuously monitors and analyzes employees’ satisfaction trends to continuously optimize theirexperiences. In 2024, the majority of employees showed favorable attitudes towards organizationalculture, development prospects, personal management, and team management. Based on theresearch analysis results, the Company has formulated specific improvement measures for the areaswith lower satisfaction, including the working environment, salary and benefits, and logisticsmanagement. For example, the Mutto Optronics planned to renovate employee cafeterias anddormitories in 2025 to systematically enhance dining and accommodation facilities.

5.2.3 Risk and Opportunity Management

With priority in human capital risk management, DSBJ systematically identifies, assesses,addresses, and monitors human capital risks aligned with strategic objectives. The Companyconducts comprehensive analyses of internal and external factors that may harm to human capitaldevelopment in order to identify key risk areas including but not limited to talent attrition, shortageof key talents, poor performance management, inadequate training and development, lack ofcompetitive or equitable compensation and benefits, legal compliance issues, and organizational

culture risks. To address these risks, we have developed a talent development strategy aligned withthe Company’s strategic planning and business development direction, according to which the keyinitiatives include enhancement of compensation competitiveness, establishment of a full-cyclecareer growth support system and optimization of HR management processes across talent attraction,cultivation, utilization, and retention. Through these initiatives, we can ensure that human capitaldevelopment risks remain controllable while stabilizing workforce continuity and improvingorganizational performance with the assistance of a risk monitoring mechanism.

5.2.4 Indicators and Targets

5.3 Community Construction

The Company’s sustainable development cannot be separated from the stability and prosperityof society. The Company actively practices corporate social responsibility, participating in variouscharity and volunteer activities and prioritizing hiring residents from production and operation sitesto contribute to boosting the local economy while repaying the community through practical actions.

In 2024, the Company’s external public welfare donations amounted to RMB 7,186,600.By the end of 2024, the number of local recruits reached 6,739.

Children and adolescents represent the future of a country and the hope of a nation. Theunderserved youth, as a vulnerable group, require heightened societal support. In 2024, the LEDDivision donated RMB 800,000 to the “Dream Transformation+” care initiative, supporting theaspirations of adolescents in difficulties through practical actions. These funds would enhanceliving and learning environments for adolescents in difficulty, paving their “path to dreamrealization” and igniting the “light of hope”.

volunteer activities in elderly care apartments

AppendixAppendix I: Key Performance Table

Corporate Governance and Economic PerformanceEconomic Performance

Corporate Governance

Business Ethics and Anti-corruption

Environmental PerformanceEnvironmental Management

Energy Use and GHG Emissions

Note 1: Scope 1 GHG emissions are direct emissions from the Company's consumption of gasoline,diesel, and natural gas, while Scope 2 GHG emissions are indirect emissions from the electricitypurchased by the Company. The Scope 1 GHG emission factors are calculated based on theReporting Guidance on Environmental KPIs published by the National Development and ReformCommission, while the Scope 2 GHG accounting methods are adopted with reference to theAnnouncement on the Release of the 2022 Carbon Dioxide Emission Factors for Electricity jointlyissued by the Ministry of Ecology and Environment and the National Bureau of Statistics.

Water resource usage

Water recycling

Emissions and Waste

Social PerformanceR&D and Innovation

Indicators

Customer Rights and Interests

Supply Chain Management

Employee Responsibility

Occupational Health and Safety

Social Welfare

Indicators

Appendix II: Index of IndicatorsGlobal Sustainability Standards Board; Guidelines for Self-regulation of Listed Companies No.17 - Sustainable Development Report (Trial), Shenzhen Stock Exchange (SZSE) ;

Employee

GRI Content IndexUsage statement: The Company has prepared this report in accordance with GRI standards for thereporting period from January 1, 2024 to December 31, 2024.

Report Chapter