Environmental,

Social and

Governance Report

April, 2025

Xiamen Jihong Technology Co., Ltd.

CONTENTS

4 Governance: Enhancing Governance

4.1 Corporate Governance

4.1.1 Board of Directors Structure

4.1.2 Diversity of Board of Directors

4.1.3 Investor Communication Mechanism

4.2 Risk Management

4.2.1 Risk Governance

4.2.2 Risk Identi?cation and Response

4.2.3 Risk Awareness and Culture

4.3 Business Ethics

4.3.1 Business Ethics Governance

4.3.2 Business Ethics Training

4.3.3 Whistleblowing Management

5.1 HKEX - Environmental, Social

and Governance Reporting Guide Index

5.2 Shenzhen Stock Exchange

ESG Index

5.3 Feedback Form

3.1 Product Responsibility

3.1.1 Quality Management

3.1.2 Customer Service

3.1.3 Information Security

3.1.4 Innovation and R&D

3.2 Supply Chain Management

3.2.1 Supplier Admission and Evaluation

3.2.2 Supply Chain ESG Management

3.2.3 Supplier Communication

3.3 Health and Safety

3.3.1 Work Safety

3.3.2 Occupational Health and Safety

3.4 Talent Development

3.4.1 Diversity, Equality, and Inclusion

3.4.2 Employee Rights Protection

3.4.3 Employee Training and Development

3.5 Social Welfare

About This Report

1 About Us

1.1 Company Pro?le

1.2 Organizational Structure

1.3 Milestones

1.4 Annual ESG Performance Highlights

1.5 Annual Honors and Awards

1.6 ESG Governance

1.6.1 ESG Management Framework 1.6.2 Stakeholder Communication 1.6.3 Materiality Assessment

2 Environment: Green Future

2.1 Green Production

2.1.1 Environmental Management System 2.1.2 Resource Management 2.1.3 Emission Management 2.1.4 Green Products

2.2 Green O?ce

2.3 Climate Change

2.3.1 Governance 2.3.2 Strategy 2.3.3 Risk Management 2.3.4 Indicators and Targets

2.4 Biodiversity

Board of Directors Statement

3 Social: Giving Back to Society

5.Appendices

Message from the Chairman

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Reporting PeriodThe report covers the period from January 1, 2024, to December 31, 2024, while also incorporating relevant information from preceding years.

Report ScopeUnless otherwise speci?ed, the organizational scope of this report includes Xiamen Jihong Technology Co., Ltd., as well as its branch o?ces and

wholly-owned subsidiaries. It is consistent with the consolidated reporting scope speci?ed in Jihong Group’s annual report.

References

This report extensively referenced the Environmental, Social and Governance Reporting Code in Appendix C2 of the Hong Kong Exchanges andClearing Market’s Main Board Listing Rules, the Shenzhen Stock Exchange’s Self-Regulatory Guidelines for Listed Companies No.1 - StandardizedOperations for Main Board Listed Companies and Listed Companies Self-Regulatory Guidelines No. 17 - Sustainable Development Report (Trial); Inpreparing this report, we also consulted the Global Sustainability Standards Board’s GRI Standards 2021 and the International Organization for

Standardization’s ISO 26000 - Guidance on Social Responsibility.

AddressingTo enhance clarity and readability, throughout this report, “Xiamen Jihong Technology Co., Ltd” is interchangeably referred to as “Jihong Group”

“the Company”, and “we.”Data DescriptionThe ?nancial data and the ?nancial and audit reports referenced in this report are detailed in the Xiamen Jihong Technology Co., Ltd. 2024 AnnualReport. Other data is primarily sourced from Jihong Group’s internal statistics. Unless otherwise speci?ed, all currency values presented in this report

are denominated in the Chinese Renminbi (RMB).

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

website (http://www.szse.cn).

This is the third Environmental,Social and Governance (ESG)Report issued by XiamenJihong Technology Co., Ltd.Aligned with the principles ofobjectivity, standardization,transparency, and comprehen-siveness, it outlines JihongGroup’s endeavors andaccomplishments in fosteringcomprehensive, coordinated,and sustainable development.

ABOUT THIS REPORT

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At Jihong Group, the Board of Directors holds the highest responsibility foroverseeing and decision-making the Company’s ESG strategy and reporting.Through assessing and determining ESG risks, the Board ensures the stabilityof our risk management and internal monitoring systems. The Board authoriz-es the Strategy Committee to supervise management activities and has estab-lished the ESG Decision-Making Department to oversee the daily operations ofthe sustainable development management.We regularly evaluate key ESG issues by considering external macroenvironment and our development strategy. The results of these evaluationsare submitted to the Board for review. ESG risks and opportunities, asdiscussed and con?rmed by the Board, are incorporated into the Company’soverall strategy, with ongoing oversight to ensure e?ective issue managementand performance.The Company also plans to establish targets in key ESG areas—includingpollutant emissions, energy consumption management, water resourceconsumption management, and carbon emissions. We aim to integrate ESGmanagement performance into daily operational objectives to strengthen ESGgovernance.

This report provides a detailed disclosure of Jihong Group’s ESG progressand achievements in 2024. It has been reviewed and approved by the Board ofDirectors. The Board and all Directors con?rm that, to the best of their knowl-edge, the content of this report is free of any false records, misleadingstatements, or material omissions. Each director assumes individual and jointresponsibility for ensuring the truthfulness, accuracy, and completeness ofthis report.

BOARD OF DIRECTORS STATEMENT

MESSAGE FROM THE CHAIRMAN

Green Future: Ful?lling a Low-Carbon Mission and Empowering Ecological Transformation

Jihong Group regards environmental responsibility as essential to achieving high-quality growth and is actively building a comprehensive green production system. We are reducing carbon emissionsthroughout the entire packaging lifecycle by optimizing eco-friendly production processes and advancing research into biodegradable materials. We have also strengthened green o?ce practices by usingdigital systems for re?ned energy management and are actively participating in global climate governance. This includes working with partners across the supply chain to explore carbon footprint trackingmechanisms. In 2024, two of Jihong Group’s production bases were rated as green factories, setting new benchmarks for low-carbon transformation across the industry chain.

Giving Back to Society: Fostering Responsibility and Building a Value Ecosystem

Guided by the philosophy of “surviving on quality, developing on credibility,” Jihong Group integrates this principle throughout its business practices. We continue to strengthen our social responsibilityframework by taking a multi-faceted approach. We have established a comprehensive product safety standard to safeguard customer health and meet environmental needs. ESG collaborative managementwith suppliers has been deepened to promote transparency and strengthen supply chain resilience. Furthermore, we are committed to building a diverse and inclusive talent pipeline by enhancing careerdevelopment pathways for employees.

In 2024, all ten of Jihong Group’s production bases were certi?ed under ISO 9000 quality management system and SEDEX-4P, while GiiMall received the “Annual Best Market In?uence Award” at the 4thChinaGo Cross-Border E-Commerce Industry event. Employees also actively engaged in volunteer work and charitable initiatives, strengthening the connection between business success and social contribu-tion.

Enhancing Governance: Fortifying the Compliance Foundation for Long-Term Development

Jihong Group continues to re?ne its governance framework, integrating ESG objectives into strategic decision-making and daily operations. A structured management and decision-makingframework—comprising the Shareholders’ Meeting, Board of Directors, Board of Supervisors, and senior management—has been established to strengthen top-level design and execution oversight. We havealso developed a comprehensive risk control system that covers critical areas such as supply chain integrity and data security. E?orts to promote anti-corruption culture have been deepened, encouraging theinternalization and externalization into actions of compliance awareness and ethical standards across the organization.

Looking ahead to 2025, Jihong Group will leverage intelligent manufacturing, R&D innovation, and green factory construction as breakthrough initiatives to advance its green development goals. In thepackaging sector, we will continue to accelerate technological innovation and invest in eco-friendly packaging solutions. In the e-commerce sector, we will harness AI large models to enhance end-to-endintelligence and expand further into emerging markets under the Belt and Road Initiative. The future is already here, and Jihong Group is eager to collaborate with stakeholders from all sectors to create agreener, high-quality development landscape.

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In 2024, the global push for sustainable development gained momentum, with the green economy and digital transformationevolving in tandem. Jihong Group remained steadfast in its core philosophy of“innovation-driven, responsibility-?rst,” strengtheningthe strategic synergy between its packaging and e-commerce dual-pillar businesses. By leveraging technological innovation, theCompany is empowering its green transformation and exploring emerging markets from a global perspective. Our cross-border sociale-commerce business has continued to expand, while our leadership in green packaging solutions remains strong, delivering valueand positive impact to shareholders, customers, and society.

1 ABOUT US

1.1 COMPANY PROFILE

1.2 ORGANIZATIONAL STRUCTURE

Xiamen Jihong Technology Co., Ltd. is a leading dual-engine enterprise driven by technology, innovation, and digital intelligence.The Company focuses on two main areas: cross-border social e-commerce and paper-based FMCG packaging solutions. Its corebusiness is divided into two channels. The To-C (consumer-focused) channel specializes in precision marketing for cross-border sociale-commerce, while the To-B (business-focused) channel o?ers comprehensive marketing, design, and packaging services for leadingFMCG clients. Currently, the Company is one of the leading cross-border social e-commerce enterprises in Southeast Asia and has beenranked among the“Top 100 Chinese Printing and Packaging Enterprises of 2024.”

Shareholders’

MeetingBoard ofDirectorsStrategyCommitteeNominationCommitteeAuditCommittee

AuditDepartment

Remuneration andAssessment Committee

BoardSecretarySecuritiesDepartment

Board ofSupervisors

GeneralManager

Assistant to theGeneral ManagerMarketing

Center

OperationsCenter

R&DInnovationCenter

Procurement

Center

FinanceCenter

HumanResourcesCenter

Information

Center

DesignCenter

Deputy General

Manager

·

Build ten brands with global in?uence

We have always stuck to the principle of “surviving with quality and developing with credit”, and are dedicated tobuilding ten brands with global in?uence to provide high-quality products and extremely convenient services for globalconsumers.·

Enable partners to achieve both material and spiritual prosperity

To realize employees’ self-value, we strive to establish a fair and impartial remuneration incentive management systemto achieve both material and spiritual prosperity and facilitate mutual progress and development for individuals and theCompany.

Corporate visionCorporate culture

·

Focusing on entrepreneurship and forging ahead through di?culties

Running an enterprise is much like rowing a boat against the current; if we let up even slightly then we risk undoing allof the progress we have made. We should remain committed to hard work as entrepreneurs and make headway tomaintain our vitality and competitiveness.·

Simplicity, Perfection, e?cient collaboration, goal-oriented e?ort, andaccountability for results

We manage to form a horizontal organizational structure, build shoulder-to-shoulder trust and set uni?ed objectives toremove estrangement and rift among employees, which helps us work together towards clear and achieve the goal of thecompany's long-term sustainable development.

Business philosophy·

Data-centric, technology-driven, outcome-focused and all are operators

We strengthen the operator thinking and embed it into our operation. We upgrade our technologies driven by businessprocedures and then improve our business organizing capability to create digitalized and data-centric assets which aretransformed to enhance our reproducing capability with big data, AI and other technologies. Using data, we reinforce thedigital operations and innovation capabilities of our teams through the circulation and accumulation of production,processing, using and reproduction to control quality and cost in a strict manner. Thus, we achieve high-frequency iterationand rapid revolution of our organization which is data-centric, technology-driven, and outcome-focused.

-4-Jihong Group Organizational Structure

1.3 MILESTONES

1996·12Jihong Group’spredecessor, XiamenZhengqi, was established,specializing in graphicdesign and advertisingplanning.Jihong released itsIPO on the ShenzhenStock Exchange.

Jihong was o?ciallyfounded and focused onthe packaging industry,building ten factoriesacross China to o?ercomprehensive marketingand packaging designservices to leading FMCGcompanies.

2016·07

2003·12

We consecutivelyentered the marketsof Hong Kong, Japan,Thailand, Malaysia,and Singapore.

Giikin was establishedto expand ourcross-bordere-commerce businessin Southeast Asia,which opened up anew avenue of growth

for us.

20172017

We expanded theR&D team,established a dataanalysis team, andimplementedmanagementsystems forwork?ow, productselection, ?nancialsettlement, ordertracking, andwarehousing.

We upgraded the e-commerce

management system v2.0.

2018·03

2017·12

We formed a brandoperation team.

We made signi?cante?orts to promoteour brand strategyand build ourcorporateculture.

2019·03

2019

We formed aplatforme-commerce team.

We launched thee-commercemanagementsystem v3.0.

2019·11

2019·05

We upgradedthe work?owmanagementsystem V3.0

We initiated afull-scale drivetowards enterprise

automation andintelligence, whichinvolved rolling out a

big data system, anintelligent productselection system, and

an automatedadvertising system.

2020

Early 2020

We established a strategicpartnership with HuaweiCloud. This partnershipenabled us to utilizeadvanced AI technologyand computing resourcesto implement intelligentsystems for big dataanalytics and ad designand delivery.

We tried tobroaden ourbrand portfolio by

tapping into newmarkets such as

lingerie, home

textiles.

2021·072021

We establishedcross-borderelectric bicyclesand beautyproduct brands.We entered theEastern European

market.

2022

2021·11

We made signi?cantprogress in achievingour digital strategyobjectives byimplementingdecision supportsystems, such asSmart Companion,Boss Assistant,Indicator Monitoring,and Talent Map.We rolled out anautomated operationsmanagement system on

a third-party platform,which has contributed

to the exponentialgrowth of orders on that

platform.

2022

2022·06

We integrated theChatGPT API toempowercross-bordere-commercebusinesses in areassuch as AI-drivenproduct selection,the creation ofgraphic and videoadvertisingmaterials, andintelligent adplacement.

We upgraded the

warehousing

system andachieved fullyautomated and

intelligent

operations.

2023·01

2022

We developed andperfected the automated,intelligent, and digitalcross-border e-commercebusiness managementsystem Gikin3.0. On thisbasis, we gradually rolledout the e-commerce textvertical modelChatGiKin-6B, thee-commerce intelligentdesign and materialgeneration vertical modelGiiAI, and the intelligentad placement assistantG-king, laying a solidfoundation of intelligentsystems for theCompany’s long-termsustainable developmentin cross-bordere-commerce business.

We signed a jointinnovation agreementon the AI large model

with Huawei Cloud,o?cially launchingthe second phase of

cooperation for

AIGC-based deepempowerment of the

cross-bordere-commerce

platform, jointlycreating the Pangu

cross-bordere-commerce large

model, andpromoting a deeper

level of digitaltransformation.

20232023·06

The current Sheikh of Ras AlKhaimah in the United ArabEmirates, Sheikh Saoud, visited the

company’s leadership, and both

sides engaged in in-depthdiscussions on cooperationchannels, investment projects, and

market expansion.In the same month, a delegation ledby the Chairman of BMJ Industries -the largest tobacco production andmanufacturing enterprise in the UAE- visited the company headquarters

and its intelligent packagingproduction base. They highlyrecognized the company’s smartmanufacturing, re?ned operational

management, innovativedevelopment capabilities, andsteadfast commitment to the corephilosophy of “green, environmen-

tally friendly, and sustainable.”

GiiMall, in collaborationwith Amazon, SinoClick,and Partner Boost, hostedthe “Internal and ExternalSynergy for ResilientGrowth” themed event,attracting numerouscross-border e-commercebrand sellers, industryexperts, and cross-borderservice providers to cometogether.

2024.09

2024.03

The Company issued anannouncement stating itsintention to co-investwith VENUS TRADINGFZCO to establish a joint

venture, AJT Holding

International Limited, at

the Dubai InternationalFinancial Centre in the

UAE. This initiative aims

to actively expand its

overseas presence -particularly in the Middle

East and Africa - and

accelerate theinternational layout andstrategic planning of itscross-border business.2024.12

Jihong Group has

submitted itsapplication tothe Hong KongStock Exchange

and intends tocomplete an A+Hdual listing plan.

2024.02

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1.4 ANNUAL ESG PERFORMANCE HIGHLIGHTS

ENVIRONMENT:

GREEN FUTURE

SOCIAL: GIVINGBACK TO SOCIETY

GOVERNANCE:

ENHANCING GOVERNANCE

9 production facilities have been certi?ed underthe ISO 14001 for Environmental ManagementSystem;Jihong Group’s Langfang factory was rated as aprovincial-level green factory, and the Anhuifactory was rated as a municipal-level greenfactory;Annual photovoltaic power generation atXiamen & Anhui factories exceeds 2 million kWh,reducing CO

emissions by 2,267 tons;Obtained green product certi?cation for expresspackaging.

All 10 production bases have been certi?ed under ISO 9000 for Quality ManagementSystem and Sedex-4P; 2 production bases have received BRCGS A+ grade certi?cation; 1production base has received BRCGS A grade certi?cation; and 5 production bases haveundergone FSC certi?cation;No product recall incidents occurred;Filed 64 new patent applications, of which 53 were approved, and obtained 30 newsoftware copyrights;Company was included in the ?rst batch of technology-based SMEs in Hubei Province for2024, recognized as a Technology Innovation Demonstration Enterprise in Tangshan, andreceived one Second Prize and one Third Prize for Science and Technology Progress inHenan Province;Total employee training reached 43,691 hours, with an average of 10.1 hours peremployee;Employees participated in 146 volunteer activities, contributing 421 volunteer servicehours. Invested RMB 30,500 in charitable projects supporting local communities.

The Company held 12 Board of Directors meetings, 8Shareholders’ Meetings and 8 Board of Supervisorsmeetings throughout the year;Conducted a total of 2 performance brie?ngmeetings, received 68 interactive responses, anddisclosed 160 announcements;Conducted 4 anti-corruption training sessions forBoard members, totaling 4 hours of training andachieving a 100% participation rate；No lawsuits or administrative penalties related tounfair competition, embezzlement, bribery, ormoney laundering were reported.

1.5 ANNUAL HONORS AND AWARDS

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JIHONG GROUP 2024 MAIN HONORS AND AWARDS

“Top 20 Private Service

Enterprises in Xiamen”Xiamen Federation of Industry andCommerce

“2024 Top 100 ManufacturingEnterprises of Fujian Province”Fujian Enterprises and EntrepreneursConfederation, Fujian Academy of SocialSciences and Fujian Media Group

“High-Quality Suppliers”

China (Xiamen) InternationalCross-Boarder E-Commerce Expo

“Top 50 Service Providers for

Chinese Enterprises Going Global”Jointly selected by Cailian Press and the ChinaOverseas Development Association

“2024 Shanghai Securities

News Gold Quality Award -ESG Award”Shanghai Securities News

“Top 100 Private Enterprises

of Fujian Province”Fujian Federation of Commerce & Industry

ESG MANAGEMENT FRAMEWORK

RESPONSIBILITY

Authorize the Strategy Committee to approve and superviseESG-related matters.

1.6.1 ESG MANAGEMENT FRAMEWORK

1.6 ESG GOVERNANCE

Jihong Group is ?rmly committed to sustainable development, integrating sustainability principles into both daily operations andlong-term strategic decision-making. The Company continuously strengthens its ESG management system, fostering e?ectivecommunication and engagement with stakeholders while striving to enhance its ESG management capabilities.

Jihong Group places great emphasis on ESG management and has established a clear, hierarchical ESG governance framework withwell-de?ned responsibilities. The Board of Directors, as the highest authority oversees all ESG-related decision-making. Authorized bythe Board, the Strategy Committee manages and approves ESG issues. The ESG decision-making department handles the day-to-dayimplementation of ESG strategies and activities. This comprehensive system ensures a top-down execution of ESG responsibilities,e?ectively advancing the Company’s sustainable development management.

We persist in integratingESG managementconcepts into internaloperations and externalbusiness outputs.We strengthen the verticalintegration with variousdepartments andbranches to ensure theformation of an e?cientand powerful ESG worknetwork, achieving theclose integration of theCompany’s ESGresponsibilities andbusiness operations.

From a strategic perspective,we integrate ESGresponsibilities into thecorporate developmentstrategy to achieve uni?eddeployment andcoordinated advancement.We establish an ESG keyindicator system that alignswith the characteristics ofthe enterprise, build aclosed-loop managementsystem for corporate ESGgovernance, and coordinatethe Company’sdevelopment in economic,social, and environmentalaspects.

In accordance with ESGinternational standards,national standards,regulatory requirements,and other relevantpolicies and initiatives, weadvance the Company’ssystematic, standard, androutine ESG managementto align with globalstandards in aspects suchas policy systems,management systems,process mechanisms,action measures, andperformancemanagement.

LEVEL

BOARD OFDIRECTORS

Assess and manage the Company’s ESG-related risks andopportunities to ensure the continuous execution and implementa-tion of the Company’s ESG policies.Develop guidelines on important ESG matters, review and rate thesigni?cant issues identi?ed.Review the Company’s ESG work and internal monitoring systems,and provide suggestions on their suitability and e?ectiveness.Review the Company's ESG-related disclosure documents, including(but not limited to) annual ESG reports.Regularly report to the Board of Directors and provide ESG-relatedtraining and materials.

STRATEGYCOMMITTEE

Coordinate, supervise, and manage the overall risks associated withthe Company’s business operations and quality control.Collaborate with relevant departments to carry out ESG riskprevention and management, and conduct irregular reviews.ESGDECISONMAKING

DEPARTMENT

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Collaborating

businessdevelopmentIntegratinginto corporatestrategy

Aligning with

globalstandards

ESG MANAGEMENT PRINCIPLE

1.6.2 STAKEHOLDER COMMUNICATION

Jihong Group values open and active communication with all stakeholders. The Company has established a regular, multi-channelcommunication framework to ensure transparency and responsiveness. It actively addresses the concerns and expectations ofstakeholders—including shareholders, customers, government and regulatory agencies, employees, partners, media, and communityrepresentatives—fostering mutual development.STAKEHOLDERS

ISSUES OFCONCERN

COMMUNICATIONFORMS

Shareholders

Corporate governanceRisk managementCircular economy

Shareholders’ MeetingRegular reports andannouncementsInterim announcementsand noticesCompany websiteInvestor mailboxOnline and o?ineinvestor meetings

Customers

Sustainable packagingProduct responsibilityTechnological innovation

Customer satisfactionResponsible marketing

Information securityand privacy protection

WeChat o?cial accountCustomer satisfaction survey

Product survey feedbackCustomer complaint

and handling

Online and o?ine activity

promotionCompany website and social

media interaction

Governments and regulators

Corporate governance

Risk managementBusiness ethics and

anti-corruption

Information disclosureDaily communication

and reportingSupervision and inspections

Visitor receptions

Employees

Diversity and equityTalent attraction and retention

Employee training anddevelopmentHealth and safety

Employee satisfaction survey

Internal o?ce systemsInternal communicationmeetings

Employee complaintsand feedback

Internal and externaltraining activities

Publicity activities of

corporate cultureEmployee care activities

Partners

Responsible marketingSupply chain management

Project procurement

Supplier contractsand agreementsSupplier audit and evaluation

Supplier assistance

and cooperationOther suppliercommunication activities

Media

Addressing climate changeProduct carbon footprint

Energy and resource

conservationWaste managementPollutant emissions

Exclusive interviewsCompany website andsocial media interaction

Community representatives

Community developmentand investmentPollutant emissions

Community activitiesPublic welfare activitiesCompany website andsocial media interaction

JIHONG GROUP’S STAKEHOLDER COMMUNICATION MECHANISM

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To strengthen ESG practices and improve information disclosure, Jihong Group conducts materiality assessments to identify ESGissues, in reference to the Hong Kong Exchanges and Clearing Limited (HKEX)’s Environmental, Social and Governance Reporting Codeand the Shenzhen Stock Exchange’s Listed Companies Self-Regulatory Guidelines No. 17 - Sustainable Development Report (Trial).This process ensures that the report comprehensively covers key issues of concern to both the Company and its stakeholders.Every two years, the Company conducts a comprehensive and in-depth study and assessment of material issues through interviewsand questionnaires. This approach helps understand and respond to stakeholder concerns and priorities while aligning with externalmarket trends and the Company’s operational characteristics. In 2024, as there were no signi?cant changes to the businessenvironment, the Company continued to apply the materiality assessment results from 2023.

We conducted a comprehensive review of the Company’s key ESG issues and theconcerns of various stakeholders in accordance with the Hong Kong Exchanges andClearing Market’s Environmental, Social and Governance Reporting Code and theGlobal Sustainability Standards Board’s GRI Standards 2021. By benchmarkingagainst domestic and international peers, we identi?ed key ESG issues.Based on the results of the preliminary stakeholder questionnaire survey and incombination with the ESG rating and index assessment requirements of the capitalmarket (such as MSCI and S&P DJSI), we evaluated and ranked di?erent issuesbased on their signi?cance to both Jihong Group and stakeholders. Subsequently,we formulated Jihong Group’s ESG material issues matrix.The Strategy Committee is responsible for reviewing and a?rming the ESGmaterial issues identi?ed through the assessment process outlined above. Itreports these ?ndings to the Board of Directors and o?ers recommendationsregarding the ?nal determination of these issues.

LowHighImportance to Jihong Group

Sustainable PackagingAddressing Climate ChangePollute Emissions

Circular Economy

Diversity and EquityBusiness Ethics and Anti-Corruption

Information Security and Privacy Protection

Corporate Governance

Risk Management

Supply Chain ManagementResponsible Marketing

Technological InnovationCustomer Satisfaction

Product Responsibility

Talent Attraction and RetentionCommunity Development and Investment

Employee Training and Development

Health and Safety

Product Carbon Footprint

Waste Management

Energy and Resource Conservation

JIHONG GROUP 2024 ESG MATERIALISSUES MATRIX

EnvironmentalIssue

Social IssueGovernance Issue

High ImportanceModerate Importance

Low Importance

Importance to Stakeholders

High

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1.6.3 MATERIALITY ASSESSMENT

MATERIAL ISSUES DETERMINATION PROCESS

Issueidenti?cation

Review andcon?rmation

Screening andassessment

2 ENVIRONMENT: GREEN FUTURE

Jihong Group adheres to green development, actively practices the concept of energy conservation and emission reduction, deeplyintegrates sustainable development into the enterprise operation process, and creates an environmentally friendly enterprise bycontinuously improving green manufacturing capabilities, contributing to the green transformation of the industry.

2.1 GREEN PRODUCTION

The Company has formulated an Environmental Protection Emergency Plan to ensure a clear, standardized approach to handlingunexpected pollution incidents. The goal is to reduce environmental damage and minimize potential losses. To oversee this, anEmergency Rescue Leadership Group coordinates with various departments to investigate causes, assess impacts, and organizeregular emergency drills and risk inspections. Additionally, when conducting environmental impact assessments, the Companystrictly adheres to the Classified Administration Catalogue of Environmental Impact Assessments for Construction Projects issued bythe Ministry of Ecology and Environment of the People’s Republic of China, and hires quali?ed institutions to carry out the relevantevaluations.

Jihong Group complies with relevant laws and regulations, such as the Law of the People’s Republic of China on EnvironmentalProtection, the Law of the People’s Republic of China on Environmental Impact Assessment, the Forest Law of the People’sRepublic of China, the Law of the People’s Republic of China on the Protection of Wildlife, and the Regulations of the People’sRepublic of China on Wild Plants Protection. To ensure e?ective environmental management, the Company has also developedinternal policies, including its Environmental Management System, to monitor and control its ecological footprint during production.In 2024, 9 out of 10 production facilities earned ISO 14001 certi?cation for environmental management. Additionally, the Anhui factorywas recognized as a municipal-level green factory, while the Langfang facility achieved provincial-level green factory status.

2.1.1 ENVIRONMENTAL MANAGEMENT SYSTEM

JIHONG GROUP’S HIGHLIGHT MEASURESON ENERGY-SAVING AND EMISSION REDUCTION

Rational Production Scheduling:

Implement coordinated productionplanning and material preparationto avoid equipment idling andreduce standby energyconsumption.Use of Variable FrequencyTechnology: Apply variablefrequency drives to equipmentsuch as fans and pumps, adjustingpower output based on demand.Phasing Out High-Energy-Consum-ing Equipment: Replace suchequipment with high-e?ciency,energy-saving alternatives; alllighting in workshops, warehouses,o?ce buildings, and dormitorieshas been replaced with LEDlighting.

Jihong Group is committed to conserving energy and reducing emissions. By strengthening energy management and improvingresource e?ciency, the Company continues to advance its long-term sustainability goals.The Company strictly adheres to the Law of the People’s Republic of China on Energy Conservation and other relevant laws andregulations. It has established internal policies such as the Energy Conservation and Consumption Reduction Management System,Energy Conservation and Consumption Reduction Organizational Management System, and Energy Conservation and EmissionsReduction Management System, and has set up an Energy Management Group to coordinate its energy management e?orts. TheCompany continuously optimizes production processes, enhances energy e?ciency management, and strives to reduce energyconsumption at each stage. The goal is to maximize productivity and economic bene?ts while keeping energy consumption to aminimum.

Optimizing EquipmentOperation

Enhancing Employee Awarenesson Energy ConservationStrengthening Energy

Management

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Anhui Jihong Environmental Protection Paper Products Co., Ltdreceived the 2024 Bengbu Green Factory Certi?cation.

Langfang Jihong Packaging Co., Ltd. receiveda provincial-level Green Factory Certi?cation.

2.1.2 RESOURCE MANAGEMENT

Installing Electric Meters: TheEquipment Department installselectric meters on key machineryand high-consumption areas tomonitor power usage and promptlyidentify any anomalies.Optimizing Electricity Usage Plans:

During the o?-peak productionseason from March to August, theCompany adopts single-shiftproduction, employs staggeredelectricity usage, shifts allproduction to the night shift, andtakes advantage of o?-peakelectricity rates to reduce electricitycosts.

Conducting Training: Utilize trainingsessions and all-employee meetingsto promote energy conservation,enhancing employees’ awarenessand cultivate energy-saving habits.Displaying Energy-Saving Signs: Postenergy-saving signs above switchesand sockets in common areas suchas o?ce buildings and dormitoriesto serve as constant reminders.Strengthening Daily Inspections:

During day shifts, cleaning sta?patrol their designated areas topromptly turn o? any lights thatremain on; during night shifts,security personnel conductinspections across all areas toensure lights are turned o? whennot needed.

ENERGY MANAGEMENT

JIHONG GROUP’S WATER USE IN 2024

WATER RESOURCE MANAGEMENTThe Company strictly adheres to the Water Law of the People’s Republic of China and other relevant laws and regulations, and hasestablished a Water Conservation Management System. It continuously optimizes high water-consuming production processes,installs advanced wastewater treatment equipment, and enhances water recycling systems. Its factories are equipped with reclaimedwater treatment systems and boiler water puri?cation equipment, allowing wastewater to be treated and reused for equipmentcleaning. These e?orts help increase the proportion of recycled water used, signi?cantly lowering industrial wastewater discharge.

Purchased water134,958ton

Water Consumption Intensity

24.41

ton/RMB 1 million of revenue

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INDICATORUNIT2024Gasoline

DieselNatural GasPurchased ElectricityPurchased HeatTotal Energy ConsumptionEnergy Consumption Intensity

tontoncubic meterkWhGJtcetce/RMB 1 million of revenue

2,863,15751,384,764

9,867

1.78

JIHONG GROUP’S ENERGY CONSUMPTION

As part of our commitment to green, low-carbon operations, we continuously re?ne our energy strategy, promote clean and renewableenergy, and invest in low-carbon process innovations and energy-e?cient technology upgrades to improve overall e?ciency. In 2024,the photovoltaic equipment at the two factories in Xiamen and Anhui both generated over 2 million kilowatt-hours of electricityannually, which is equivalent to a reduction of approximately 2,267 tons of carbon dioxide emissions.

2024 HIGHLIGHT MEASURES FOR WATERCONSERVATION IN THE FACTORYRecycling Water Resources: The watermarking machine establishes a water recycling system, ?ltering andcleaning equipment water for use in ground cleaning or landscaping.Reducing Cleaning Water Consumption: By adopting no-rinse CTP plates, the water used for equipmentcleaning is reduced.Improving Cleaning Processes: Low-water consumption techniques are applied, with high-pressure waterjets replacing traditional methods for cleaning ?oors and walls, and ?oor scrubbers used for sweeping?oors.

The LuanzhouFactory

Intelligent Water-Saving Management: Install sensor faucets and ?ow sensors to automatically controlwater usage and monitor anomalies in real time.Recycling System: Introduce a reclaimed water system where treated wastewater is used for ?ushing,landscaping, and equipment cleaning, with production washing water recycled through a closed-loopsystem.Water-Saving Achievements: Comprehensive water-saving measures have reduced the Company’s totalwater consumption by40%, lowered wastewater discharge, and met green production standards.

The ShaanxiFactory

2.1.3 EMISSION MANAGEMENT

Jihong Group actively creates a green and environmentally friendly production environment by establishing a comprehensiveemissions management system and disposal procedures. The Company enforces strict controls on wastewater, air emissions, and solidwaste to reduce environmental impact and support long-term sustainability.

The Company strictly adheres to the Law of the People’s Republic of China on Water Pollution Prevention and Control and theRegulation on Urban Drainage and Sewage Treatment, and has established a Production Wastewater Treatment Management Systemto ensure proper wastewater handling and prevent pollution risks. Each production unit operates under a grid management approach,clearly de?ning the responsibilities of wastewater treatment personnel. These responsibilities are integrated into performanceevaluations, ensuring compliance and preventing unauthorized discharges. To maintain stable operations, the management teamconducts cleaning and internal loss inspections every six months, adjusting maintenance based on equipment performance. Addition-ally, all a?liated factories are equipped with reclaimed water treatment systems, allowing wastewater to be recycled, further reducingindustrial discharge.

The Company strictly complies with the Law of the People’s Republic of China on on Prevention and Control of AtmosphericPollution,and other relevant laws and regulations, and has established a Prevention and Control System for Waste Water, Waste Gas,Dust and Solid Wastes, ensuring strict compliance with emission standards. To maintain transparency, the Company conductsenvironmental impact assessments and discloses the relevant results. In enclosed production areas where waste gas is generated,Jihong installs and maintains pollution control facilities as required. It also uses high-e?ciency dust removal and ?ltration technolo-gies to capture and treat emissions in each workshop, reducing environmental impact while meeting regulatory standards.

JIHONG GROUP’STOTAL WASTE GASEMISSIONS IN 2024

2.37

ton

0.33

ton

0.30

ton

NITROGEN OXIDESSULFUR OXIDESPARTICULATE MATTER

The Company strictly complies with the Law of the People’s Republic of China on Environmental Protection , the Law of thePeople’s Republic of China on the Prevention and Control of Environment Pollution by Solid Wastes, and other relevant laws andregulations. Based on its production needs, it implements waste classi?cation, promotes reduction and recycling, and improvesresource utilization e?ciency. For hazardous waste, the Company has established a Hazardous Waste Management System,submitting management plans to environmental authorities as required. Each department is responsible for collecting, documenting,and categorizing hazardous waste, which is then transferred to the hazardous waste management team for proper storage in adesignated hazardous chemicals waste warehouse. To ensure safe and compliant disposal, Jihong collaborates with certi?edhazardous waste disposal units and assigns an administrative o?cer to oversee waste handling, including receipt, storage, andtransfers.

-13-

WASTE WATER

WASTE GAS

SOLID WASTE

Waste Printer Toner Cartridges

Waste Printer Cartridges

Waste Mercury-Containing Fluorescent TubesWaste Electronic EquipmentUsed BatteriesKitchen WasteDomestic Waste

WASTE TYPES

kgkgkgkgkgtonton

UNIT

104.97

51.00

36.00

60.00

16.92

174.05

548.83

2024

1,269tonIndustrial Wastewater Discharge

66,269ton

Domestic Sewage Discharge

JIHONG GROUP’S TOTAL EMISSIONS IN 2024

JIHONG GROUP’S TOTAL WASTEGENERATION VOLUME IN 2024

Hazardous Waste

Non-HazardousWaste

JIHONG GROUP’S GREEN OFFICE MANAGEMENT MEASURES

2.1.4 GREEN PRODUCTS

Jihong Group is committed to the research and development of eco-friendly packaging materials and has earned green productcerti?cation for express packaging. The Company actively works to reduce plastic use and minimize material consumption inpackaging printing, providing sustainable, high-value solutions to its customers. In the future, we will continue to expand our focus ongreen products, support industry-wide sustainability e?orts, and contribute to carbon peaking and carbon neutrality goals.

Jihong Group strongly advocates green o?ce practices and has implemented a series of various measures to save energy and reduceemissions. These e?orts include conserving electricity, minimizing paper use, reducing water consumption, and raising employeeawareness about environmental responsibility.

-14-

packaging materials5,945.07 ton

packaging material usage density

1.08 ton/RMB 1 million of revenue

2024

2.2 GREEN OFFICE

Innovative Waterproof Paper BagsLeveraging our experience in packaging design and market insights, wepush beyond traditional limits with advanced technology, integratingnew waterproof materials into paper bags to improve material e?ciency.

Innovative Convenient PackagingThrough market research and demand surveys, we have developeduser-friendly packaging solutions like rotating pull-out boxes and handlebeverage bags. These designs simplify packing, reduce processing time,and improve the overall customer experience.

JIHONG GROUP’S GREEN PRODUCTHIGHLIGHT CASES IN 2024

Jihong Group Express Packaging GreenProduct Certi?cation Certi?cate

Domestic WasteManagement

·Set up designated areas fordomestic waste disposal andimplement waste classi?cation.·Post “No Waste” signs in thecafeteria to strengthen managementand assessment.

Paperless O?ce·Print on both sides unlessotherwise required.

Equipment Management

·Solar-powered street lights are installed in thefactory, using high-power energy-saving lamps.·Signs are posted to remind that air conditioningcooling temperature should not be lower than 26℃, and heating temperature should not exceed22℃, with air conditioning turned o? half an hour

before leaving.·Automatic control switches are installed forpublic area lighting, maximizing the use ofnatural light and reducing the number of lightsused when lighting levels are su?cient.·Employees are required to actively turn o?lighting equipment when leaving the o?ce area.

Types of RisksRisk DescriptionCountermeasures

2.3 CLIMATE CHANGE

·Setting Carbon Reduction Targets: Establishshort-term and long-term emission reductiontargets with a detailed roadmap.·Investing in Low-Carbon Technologies: Adoptenergy-e?cient equipment and renewableenergy to reduce emissions.·Participating in Carbon Trading: O?set aportion of emissions by purchasing allowancesthrough the carbon trading market.·Strengthening Carbon Management: Establisha carbon management system, conduct regularemission audits, and re?ne reduction strategies.

Transition Risks

·Growing industry awareness isdriving stricter carbon emissionsquotas and increasing carbon costpressures.·Compliance costs for carbonemission control are rising, requiringcarbon audits and the phase-out ofhigh-energy-consuming equipment.·Disruptions in supplier productioncan impact raw material supply anddelay product delivery.

Transition Risks

Policy Risks

Physical Risks

-15-

JIHONG GROUP’S CLIMATE RISK IDENTIFICATION AND RESPONSE

Jihong Group fully implements the new development philosophy, positioning climate change as one of the core issues in corporategovernance. The Company has built a scienti?c and e?cient climate governance system, regularly assessing how climate-relatedrisks—such as extreme weather, policy shifts, and market changes—could impact operations. Based on these evaluations, it developsresponse strategies to ensure transparency and accountability. In addition, we prioritize open dialogue with stakeholders, drivingclimate-focused decision-making through seminars, ESG reports, and other initiatives.

2.3.1 GOVERNANCE

The Company considers climate change a key component of its long-term strategic planning. To support China’s carbon peaking andcarbon neutrality goals, the Company has formulated the Action Plan for Carbon Peaking and Carbon Neutrality of Jihong. At the sametime, Jihong Group actively seizes climate-related opportunities by exploring sustainable packaging solutions sustainable packagingsolutions in the paper-based FMCG packaging sector. These strategic e?orts not only strengthen the Company’s competitiveness butalso align business growth with sustainability, creating shared value for both the Company and the environment.

To e?ectively tackle climate change, the Company has established a comprehensive climate change risk management system to identifyand assess both physical risks and transition risks. To mitigate these risks, Jihong has developed targeted response measures andimplemented key actions accordingly. This includes emergency plans for ?oods, typhoons, and severe pollution events, ensuringpreparedness and minimizing potential losses.

2.3.2 STRATEGY

2.3.3 RISK MANAGEMENT

Low-carbonPolicyRequirementsTighteningRegulatoryRequirementsLitigation Risk

Response

·The cost of upgrading equipmentfor energy e?ciency is increasing.·Consumers are increasinglyprioritizing low-carbon products.Companies that fail to adapt mayrisk losing market share.·Downstream corporate clientsexpect suppliers to provide green,low-carbon products and align withcarbon neutrality goals.

·Supply shortages and decliningmaterial quality are increasingcosts.

·Stakeholders are demandingstronger climate action. Failing tomeet these expectations couldharm the Company’s reputation.

·Severe weather conditions candamage operational assets, disruptbusiness activities, and pose safetyrisks for employees.·Increased energy consumption infactories and o?ces leads to risingenergy costs.·Reduced employee productivity,resulting in higher labor expenses.

·Optimizing Energy Management: Invest inenergy-e?cient equipment, re?ne productionprocesses, and reduce overall energyconsumption.·Developing Green Products: Launchlow-carbon, eco-friendly products to meetconsumer demand.·Strengthening Environmental AwarenessCampaigns: Promote sustainability e?orts toenhance brand image and attracteco-conscious customers.·Providing Carbon Footprint Information:

Measure and label product carbon footprints toincrease transparency.·Participating in Environmental Certi?cations:

Obtain environmental certi?cations to enhanceproduct competitiveness.·Conducting Supply Chain Risk Assessments:

Identify climate risks within the supply chainand develop response plans.·Diversifying Suppliers: Reduce reliance on asingle supplier to minimize risk exposure.·Collaborating with Suppliers: Assist suppliersin enhancing their risk resilience.·Establishing Emergency Inventory: Maintainstockpiles of key raw materials to handleshort-term supply disruptions.·Developing a Climate Strategy: Set climateaction goals and integrate them into corporatestrategy.·Enhancing Information Disclosure: Publishregular climate action reports and ensuretransparency through public oversight.·Participating in Industry Initiatives: Engage inindustry climate action initiatives to enhancecorporate in?uence.·Engaging with Stakeholders: Maintain opencommunication, address concerns proactively,and improve transparency.·Conducting Risk Assessments: Evaluate theimpact of extreme weather and implementemergency response plans.·Strengthening Infrastructure: Reinforcefactories, warehouses, and other facilities toenhance disaster resilience.·Enhancing Employee Training: Equipemployees with the necessary skills to responde?ectively to extreme weather conditions.·Develop a climate change emergencyresponse plan and mitigate risks by purchasinginsurance to minimize potential losses.

Cost ofUpgradingLow-Carbon

EmissionTechnologies

ChangingBehaviors andPreferences of

Customers

Rising RawMaterial Costs

Negative

Publicity

Increase in

Frequency

and Intensity

of Extreme

Weather

Events suchas Typhoons,

Storms,

Floods, and

DroughtsClimate

Change and

Rise inAverage

Temperature

Reputational RisksAcute RisksChronic RisksTechnology and Market Risks

Types of RisksRisk DescriptionCountermeasures

-16-

BIODIVERSITY PROTECTION MANAGEMENT PROCESS

IndicatorUnit2024

Scope 1 GHG emissionsScope 2 GHG emissionsScope 1 + Scope 2 GHG emissionsGHG emissions intensity

tCO

etCO

etCO

etCO

e/RMB 1 million of revenue

6,36229,35735,719

6.46

JIHONG GROUP’S GHG EMISSIONS

2.3.4 INDICATORS AND TARGETS

Jihong Group has established clear climate change-related indicators and targets to track and accelerate progress in carbon reductionand sustainability. The Company aims to reach peak carbon emissions within ?ve years and cut emissions by around 5% annually. Aspart of its long-term strategy, Jihong plans to transition all fuel-powered forklifts in its production facilities and warehouses to electricmodels by 2030, supporting its carbon peaking and neutrality goals. To ensure transparency, the Company regularly publishesgreenhouse gas emission data. In 2024, Jihong successfully completed carbon audits for all 10 factories.

2.4 BIODIVERSITY

Jihong Group complies with the Environmental Protection Law of the People’s Republic of China, the Forest Law of the People’sRepublic of China, the Law of the People’s Republic of China on the Protection of Wildlife, the Regulations of the People’s Republicof China on Wild Plants Protection, the Law of the People’s Republic of China on Environmental Impact Assessment, and otherrelevant laws and regulations to standardize biodiversity protection processes. Before starting new projects, the Company conductsenvironmental assessments to evaluate potential ecological risks. These assessments follow a structured risk management frameworkthat includes identi?cation, mitigation, transfer, acceptance, and control, aiming to minimize biodiversity-related impacts. Based onassessment results, Jihong adjusts factory management policies and practices, continuously re?ning its approach to biodiversityconservation and sustainable development.

Jihong Group ful?lls its environmental responsibilities by implementing various measures across its production and operational sites.By treating wastewater and waste gas and managing noise pollution, the Company has signi?cantly improved environmental qualityboth within its facilities and in surrounding areas. Additionally, initiatives such as a?orestation e?ectively contribute to local biodiversi-ty conservation. By actively participating in ecological protection and restoration e?orts, Jihong Group has enhanced its corporatesocial image and public recognition.

Assess potential biodiversity risks linked to sourcing endangered or protected raw materials.Evaluate how energy consumption and pollutant emissions during manufacturing a?ect localecosystems and biodiversity.Analyze the environmental impact of fuel consumption and exhaust emissions, as well as howtransportation activities disrupt roadside ecosystems.Identify risks related to improper disposal of solid waste and wastewater, which can harm soil,water bodies, and air biodiversity.Raw MaterialProcurement Stage:

Production Process Stage:

Transportation Stage:

Waste Disposal Stage:

RiskIdenti?cation

Set aside environmental risk reserves to cover potential costs related to biodiversity damage.Modify business strategies as needed to mitigate the impact of risks on business performance.Implement rapid response protocols for environmental incidents. Conduct regular emergencydrills to ensure employees are prepared to handle biodiversity-related emergenciese?ectively.Financial Reserves:

Adjusting Business

Strategies:

Developing EnvironmentalIncident Emergency Plans:

RiskAcceptance

Conduct regular environmental audits to evaluate the e?ectiveness of risk managemente?orts. Use audit ?ndings to re?ne management policies and operational procedures forcontinuous improvement.Continuously assess production and operational activities to identify potential biodiversityrisks early. Implement an environmental monitoring system to track wastewater, waste gas,and solid waste emissions in real-time and through scheduled evaluations.Provide ongoing biodiversity protection and environmental risk management training tostrengthen awareness and risk management capabilities. Hold at least one training sessionper year, ensuring employees understand and apply relevant policies and best practices.Establishing an InternalAudit System:

Monitoring and EvaluationMechanism:

Employee Training:

RiskControl

Purchase environmental liability insurance to cover potential compensation costs ifbiodiversity damage occurs due to environmental pollution.Establish clear environmental responsibility agreements with suppliers, customers, andbusiness partners to reinforce biodiversity protection across the supply chain.Insurance Strategy:

Partnerships andAgreements:

RiskTransfer

Source materials from sustainable suppliers, avoiding those linked to endangered orprotected species. Work closely with suppliers to promote eco-friendly procurementpractices.Improving Production Processes: Adopt energy-e?cient technologies and environmentallyfriendly equipment to reduce energy consumption and pollutant emissions.Green Transportation Management: Optimize transport routes to improve e?ciency andreduce fuel use. Encourage the transition to new energy vehicles to lower transportation-re-lated environmental impact.Enhancing Waste Management: Establish and improve solid waste and wastewater treatmentfacilities to ensure compliant discharge. Promote waste classi?cation, recycling, andresource recovery to reduce environmental strain.

Optimizing RawMaterial Procurement:

Improving Production

Processes:

Green Transportation

Management:

Enhancing Waste

Management:

RiskMitigation

3 SOCIAL: GIVING BACK TO SOCIETY

Jihong Group actively ful?lls its social responsibilities by continuously improving product quality and customer service in thee-commerce and packaging industries. At the same time, the Company prioritizes employee rights, talent development, andsustainable supply chain management. Through deep involvement in public welfare initiatives, Jihong strives to contribute to a moresustainable and harmonious society.

3.1 PRODUCT RESPONSIBILITY

Guided by the corporate philosophy of “surviving with quality and developing with credit,” Jihong places product quality and safety atthe core of its operations. The Company continuously re?nes quality standards and enhances product reliability to deliver high-qualityproducts and services to consumers.

In 2024, all 10 production bases obtained ISO 9000 Quality Management System and SEDEX-4P certi?cations. Additionally, 2 productionbases received BRCGS A+ grade certi?cation, 1 production base received BRCGS A grade certi?cation, and 5 production bases complet-ed FSC certi?cation.Jihong Group strictly complies with the Law of the People’s Republic of China on Product Quality and other relevant laws andregulations. Based on its operational needs, and to ensure rigorous quality control, the Company has established a qualitymanagement system and formulated over 30 internal management policies and procedures, including Quality Risk Assessment andControl Procedures, Glass and Fragile Items Control Measures, and Product Recall and Simulated Recall Control Procedures. TheQuality Control Department oversee key stages throughout the product lifecycle, ensuring compliance with quality standards andcustomer expectations. In 2024, the Company reported zero product recall incidents.

3.1.1 QUALITY MANAGEMENT

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QualityandSafetyManual

QUALITY AND SAFETY POLICIES AND OBJECTIVES

（QUALITY MANAGEMENT SYSTEM）

ProceduralDocumentsThird-Level DocumentsWork Instructions, Inspection

Procedures, and StandardsQuality Records

Quality Plan

Leadership

Guiding Documents：Documents providing overall information about the organization’s QMS to internal or external parties

Management

Implementation Documents：Documents used to control processes

ExecutionOperational Documents：Documents specifying work instructions for task execution

On-Site ActivitiesVeri?cation Documents：Documents serving as evidencethat products meet requirements and that the systemoperates e?ectively

Quality ControlDepartment

Quality Control

ManagerQuality Control

Manager

SystemSpecialistRaw and AuxiliaryMaterials Inspector

Process InspectorShipment Inspector

Quality ManagementStructure

（System Certi?cation Certi?cates）

-18-

Jihong Group is committed to enhancing quality management through digitalization, ensuring e?cient and transparent oversight fromproduction to delivery. The Company has implemented a one-code-per-box labeling system, creating a closed-loop managementprocess for precise product traceability and e?cient inventory control. This system strengthens quality re?nement and providescustomers with greater product assurance.

PRODUCT QUALITY HONORS

ONE-CODE-PER-BOXLABELING CLOSED-LOOPMANAGEMENT PROCESS

Label Serial Number·Control from the source by designing labels;·Manage the number of printed labels through serial number control.

Label Application·Conduct ?rst-piece veri?cation again during machine production and send it to the designated Wechat group for supervision.·Plan label usage by pallet during machine operation, ensuring a step-by-step closed-loop process.

Label Veri?cation·At the end of each shift, the machine operator, team leader, and QC conduct a three-party veri?cation of label quantities to ensure closed-loop management.

Label Printing·Determine the application quantity based on the plan;

·Conduct ?rst-piece veri?cation of label printing;

·Print labels according to the planned quantity;·Handover the printed labels and record the details in the

Label Printing Application Record Form.

Trophy from the 2024 Xiamen PrintingProduct Quality Competition

Quality Leap Award

In 2024, the packaging for Xiaokuihua Probiotic Powder won the ?rst prize at the 2024 Xiamen Printing ProductQuality Competition, while the Beichang Goat Milk Powder Box received the third prize.

In 2024, the Xiaogan factory was honored with the “Quality Leap Award” at the important customers Supplier QualityForum.

-19-

QUALITY MANAGEMENT MEASURESJihong Group upholds strict quality control standards across its products and services. Recognizing the unique demands of itscross-border social e-commerce business and paper-based FMCG packaging solutions, the Company implements practical ande?ective measures to ensure high-quality development and deliver premium products and services to customers.The Company has established a full-cycle product quality management system covering “sourcing-warehousing-logistics”, tosafeguard product quality and customer satisfaction in its cross-border operations. During the sourcing Phase, products undergo acomprehensive evaluation based on quality, market adaptability, and consumer demand before selection. In the warehousingmanagement stage, strict quality control initiatives are implemented to maintain product integrity and safety. Regarding logisticsmanagement, the Company enforces strict supply requirements for carriers, ensuring that products remain in optimal conditionthroughout transportation.

? Existing Product Selection:

Selectors choose products

from inventory and input

details such as weight,

volume, acceptance rate, and

media links.

? New Product Selection:

Selectors input pricing policies

and promotional strategies,

then submit selected products

to designers for webpage

design.

? Review Mechanism: Product

selection team leaders review

categories to ensure they meet

market demand and quality

standards.

? Inbound Inspection: Follow strictreceiving procedures, conductunpacking inspections, and acceptgoods only if they meet companyquality standards.? Storage Conditions: Followproper storage principles—heavyitems at the bottom, light items ontop; large items at the bottom,small items on top—to preventdamage.? Quality Inspection: Conductdaily, weekly, and monthly qualityand quantity checks maintainstrict inventory supervision.? Smart Applications: Develop awarehouse management app forintelligent inventory control.

? Supply Requirements:

Logistics suppliers mustprovide high-quality air andland transportation routes andmeet established standards forhandling customer complaints.? Transportation Management:

The logistics departmentoversees suppliermanagement, while thecustomer service team handleslogistics coordination,ensuring compliance withtransportation managementprocedures.

Product SelectionWarehousing ManagementLogistics Management

QUALITY MANAGEMENT MEASURES FORCROSS-BORDER SOCIAL E-COMMERCE BUSINESS

QUALITY MANAGEMENT MEASURES FOR PAPER-BASED

FMCG PACKAGING SOLUTIONS BUSINESS

Standardized the con?gurationand coverage scope of metaldetection equipment, andsuccessfully prevented eightincidents related to metal foreignobjects.

Special Meeting on Metal Foreign Object Control

·Standards and Sample Speci?cations: Develop technical standards and a sample catalog to regulate material quality and consistency.·Standardization of Measurement Methods: rain personnel on testing protocols for di?erent materials to ensure accurate and reliable laboratory results.·Standardization of Records: Establish structured experimental record forms to enable real-time monitoring of incoming material test results.·Additional Adhesive Solid Content Testing: Establish standardized testing methods for adhesive solid content.·Monitoring of Base Paper Moisture Content: Purchase a halogen moisture analyzer to track moisture levels in base paper.·Standardization of Base Paper Tear and Folding Resistance Testing: De?ne sampling dimensions and testing methods to prevent ?ber-related paper breakage during production.

Enhancing Standardization of IncomingMaterial Inspection

·Evaluate potential risks based on the customer’s design layout and develop targeted improvement plans.·Check anilox roller line count and ink formulation duringproo?ng, ensuring pH value and viscosity stay within the optimal range.·Adjust drying air?ow and temperature to 40-50°C, accelerating water vapor release and enhancing drying e?ciency.·Successfully produced two high-ink coverage products with zero customer complaints regarding discoloration.

Improvement of Large-Area and High-Color-Content Packaging Paper Discoloration

Con?guration of MetalDetection Equipment

Improvement ofPackaging PaperDiscoloration Issues

StandardizationMeasures for IncomingMaterial Inspection

Conducted two dedicated months (May and October) focusedon foreign object elimination, achieving signi?cant GMPimprovements. Customers recognized on-site GMP standards as“World Class”, with zero foreign object-related complaintsthroughout the year.

Foreign Object Elimination Initiative

Figure: Foreign ObjectElimination Initiative

In the paper-based FMCG packaging solutions business segment, the Company held a special meeting on metal foreign object controlto strengthen incoming material inspection standards. The Company also addressed issues related to large-area and high-color-contentpackaging paper discoloration and launched a foreign object elimination initiative to further enhance packaging quality.

-20-

QUALITY CULTURE DEVELOPMENT

Jihong Group places great emphasis on quality culture development. Daily quality meetings reinforce standards, while regular trainingsessions help employees stay engaged and aware. The Company also provides QES internal auditor training to strengthen qualitymanagement. Beyond internal e?orts, Jihong hosts technical roundtable meetings with industry peers, encouraging collaboration andshared development.

The Company has established a daily qualitymeeting system, requiring participation from bothday and night shift personnel. These meetingscommunicate issues from the previous day, keyquality control focuses, and requirements for newproducts, along with hands-on training. Thisinitiative enhances the judgment, interception,and prevention capabilities of all quality teammembers. In 2024, QC intercepted 9 Category Aanomalies and 13 Category B anomalies.

The Company has designatedevery Tuesday as Factory-WideQuality Training Day to enhanceemployees’ understanding ofquality and sense ofresponsibility. Throughout theyear, 31 training sessions wereconducted, focusing on reviewing quality anomalies across departments, analyzing root causes, implementing corrective actions,and reinforcing GMP standard management in production workshops.

The Company organized QESinternal auditor training for allsubsidiaries, ensuring that eachparticipant thoroughly understoodand mastered QES internal auditprovisions and knowledge. A totalof 115 employees participated inthe training, achieving a 100%pass rate.

Daily Quality Meetings

Company-Wide

Training

QES InternalAuditor Training

CASE：JIHONG GROUP HOSTS TECHNICAL ROUNDTABLE MEETINGIn November 2024, Jihong Group organized a technical roundtable meeting with industry-leading enterprises,bringing together expertise to conduct in-depth discussions on BP solutions. The meeting aimed to developforward-thinking and practical quality improvement strategies while advocating for industry-wide implementa-tion, driving high-quality development across the sector.

Technical Roundtable Meeting

3.1.2 CUSTOMER SERVICE

Jihong Group consistently embraces “customer centricity”, ensuring a smooth and satisfying experience at every stage, frompre-purchase to post-use.To achieve this, the Company has established internal policies such as the Customer Service Process Management Procedures andthe Customer Maintenance Management System. These frameworks create a well-de?ned communication process across pre-sales,in-sales, and after-sales, ensuring customer needs are met while continuously improving service quality and satisfaction.

The Company adopts a systematic and multi-level training program to enhance the skills and service quality of its customer serviceteam. Training covers organizational roles, job functions, and project-speci?c requirements, ensuring employees understand theirresponsibilities and how they contribute to the overall work?ow. This approach strengthens team coordination and improves customerresponse times, leading to a better service experience.

Jihong Group continuously improves the user service experience through platforms like ShopPlus, intelligent marketing tools, andservice quality management systems. The Company has established the Giikin Customer Operations After-Sales Service Policy, whichde?nes the return and exchange process, ensuring a transparent and hassle-free resolution for customers. To address customerrefusals, the Company conducts daily follow-up surveys to analyze the underlying reasons and develop targeted improvementstrategies. By actively gathering and applying feedback, Jihong aims to enhance the overall shopping experience.

To navigate rising competition and market shifts, Jihong Group has expanded its services by enhancing packaging creative design,o?ering customer training materials, introducing rapid prototyping equipment, and delivering superior services to customers.

Jihong Group prioritizes localized services, introducing targeted initiatives to improve service quality and customer satisfaction. TheCompany conducts in-depth research on cultural customs, lifestyles, and values across di?erent markets, using these insights todevelop precise sales strategies and tailor localized product o?erings that align with regional tastes, cultural nuances, and seasonaldemands. To ensure compliance, Jihong strictly follows local laws and regulations governing product distribution and sales. Inafter-sales support, the Company enhances the customer experience by o?ering local-language support, region-speci?c return andexchange policies, and localized payment options. These e?orts boost consumer trust, drive sales growth, and strengthen Jihong’sposition in the global market.

PackagingCreative DesignServices

Introductionof RapidPrototypingEquipmentThe Company providescustomers with a variety ofinnovative packaging solutions.The process begins with marketresearch, analyzing commonproduct display methods,structural packaging designs,and promotional strategies usedby beverage brands. Throughbrainstorming sessions, theteam selects the most creative,practical, and user-friendlyconcepts for development.During the design phase,multiple user groups test theprototypes, focusing on theirfunctionality and feasibility.Their feedback is incorporatedinto re?nements before the ?nalphysical prototypes areproduced.

The Company provides industryinsight training materials tohelp customers stay ahead inpackaging trends. For yogurtpackaging, research isconducted across four keyareas: yogurt characteristicsand packaging transportation,customer packaging productinventory, domestic marketresearch insights, andinternational packaging marketanalysis. These insights helpbusinesses accuratelyunderstand consumer demandsin a highly competitive market,enabling them to create moreattractive and competitiveproduct packaging solutions.

The Company has introducedrapid prototyping equipmentto shorten on-machinesampling time, enablingfaster and more preciseprinting tests for optimalresults. It also providestechnical parameters forsample printing, reducingmachine adjustments andsetup time. This improve-ment enhances operationale?ciency, delivering a morestreamlined and convenientservice for customers.

-21-

CustomerTrainingMaterialsServices

Return and

ExchangeProcess

Understanding

Customer Needs

Customer Return andExchange ReminderNegotiation Based onStandard Return andExchange Procedures

ENHANCING USER SERVICES

INNOVATIVE SERVICES

Jihong Group has established an e?cient communication and feedback system to maintain close relationships with customers.

In the cross-border social e-commerce sector, Jihong Group has developed a systematic customer feedback mechanism to enhance theshopping experience. Daily surveys collect feedback across key areas, including product quality, packaging, logistics, and deliveryservices. By comprehensively understanding customers’ genuine experiences and analyzing this data, Jihong gains a clear understand-ing of customer experiences and expectations. This enables the Company to identify areas for improvement, implement targetedoptimizations, and quickly resolve concerns, consistently earning high customer satisfaction ratings.In the paper-based FMCG packaging solutions sector, Jihong Group conducts comprehensive customer follow-ups and satisfactionsurveys in accordance with the Customer Maintenance Management System. The survey evaluates key areas such as overallimpression, service quality, product quality, innovation, technical support, delivery performance, and pricing, ensuring a holisticassessment of customer satisfaction. During the survey, Jihong gathers detailed customer feedback, identi?es areas for improvement,and analyzes the underlying reasons behind any dissatisfaction. Targeted improvement measures are then swiftly implemented toenhance collaboration and service quality.

SATISFACTION SURVEY

USER EXPERIENCE ENHANCEMENT MEASURES FOR PAPER-BASEDFMCG PACKAGING SOLUTIONS BUSINESS

Project TypeSpeci?c Measures

During the reporting period, we received a total of 37 customer complaints, all of which were e?ectively resolved,achieving a100% resolution rate. Regular satisfaction surveys help gather insights on products, services, andoverall collaboration, allowing the Company to create long-term value for its clients. Through unremitting e?orts,our customer satisfaction reached 95.83%.

INFORMATION SECURITY MANAGEMENT MECHANISM

Utilize advanced risk identi?cation tools and methods to systematicallydetect internal and external information security risks.Apply scienti?c assessment models to quantify risks, evaluating theirseverity and likelihood for accurate risk management.Develop targeted response strategies based on risk assessments,ensuring swift and e?ective actions when threats arise.Risk ManagementMechanism

-22-

3.1.3 INFORMATION SECURITY

Jihong Group adheres to a “security and prevention ?rst, balancing management and technologies, and taking comprehensivemeasures to prevent risks” approach. Recognizing information security as a cornerstone of stable operations and long-term sustainabil-ity, the Company continuously enhances its network security framework and reinforces protective measures to safeguard customerprivacy and sensitive data.

Jihong Group places great emphasis on information security and has established a scienti?c, comprehensive, and e?cient informationsecurity management system. The Board of Directors and executive management team play an active role in cybersecurity oversight,ensuring that information security is integrated into strategic planning. The executive management team is responsible for executingsecurity policies set by the Board, actively participating in the Information Security Committee, and coordinating cross-departmentalsecurity e?orts. Additionally, security progress and outcomes are regularly reported to the Board, ensuring continuous oversight,guidance, and improvement.Jihong Group’s multi-layered and comprehensive information security management structure consists of the Information SecurityCommittee, Information Security Management Team, Information Security Technology Team, and Information Security Audit Team.Each team has de?ned responsibilities and works in coordination to ensure that security strategies are e?ectively implemented andmaintained. In 2024, the Company obtained Level 2 Security Classi?cation Filing for third-party stores, warehousing and logistics, andbig data analysis information systems.

INFORMATION SECURITY MANAGEMENT SYSTEM

The Company strictly complies with the Regulations of the People’s Republic of China on Protecting the Safety of ComputerInformation Systems, the Basic Requirements for Classified Protection of Information System Security, the Requirements forInformation System Security Management, and other relevant laws and regulations. To strengthen its network and data securityframework, the Company has developed a set of internal policies, including the Personal Information Protection Policy, CybersecurityManagement Policy, Public Cloud Security Management Policy, Customer Information Confidentiality Management Policy, andNetwork and Data Security Incident Management and Emergency Response Plan. These policies establish a comprehensive andcoordinated approach to cybersecurity and data protection.

INFORMATION SECURITY MANAGEMENT POLICIES

The Company has implemented a series of scienti?c and e?ective management measures and mechanisms to enhance its informationsecurity defense capabilities, ensuring a strong, reliable safeguard for corporate information security.INFORMATION SECURITY MANAGEMENT MECHANISM

Risk Identi?cationRisk Assessment

Risk Response

Implement multi-factor authentication, including username/password,?ngerprint recognition, and facial recognition, to verify user identitiesand prevent fraud.Assign role-based access permissions according to job responsibilities,following the principle of least privilege to limit access to sensitive dataand critical systems.Access Control

Mechanism

Identity Authentication

Access Management

Use high-strength encryption algorithms to secure core and sensitive dataduring storage and transmission. Implement advanced key managementtechnologies to maintain data con?dentiality and integrity throughout itslifecycle.Develop a comprehensive backup strategy, performing full or incrementalbackups of critical data at regular intervals. Store backups at an o?sitedisaster recovery center and implement a detailed recovery plan toensure fast and accurate data restoration in case of loss or corruption.Data ProtectionMechanism

Data EncryptionData Backup and Recovery

Deploy a comprehensive security monitoring system to track informationsystems, network devices, and user activities in real time. Detect anomaliesand security incidents promptly, triggering instant alerts for rapid response.Conduct regular security audits to assess policy implementation,compliance, and e?ectiveness of the information security managementsystem. Ensure ongoing improvements and adherence to industry standards.Security MonitoringandAudit Mechanism

Security Monitoring

Security Auditing

Establish a dedicated security response team with clearly de?ned roles andresponsibilities to ensure e?cient incident management.Develop a detailed security response plan outlining procedures, mitigationstrategies, and role assignments. Conduct regular drills to test and re?ne theplan for maximum e?ectiveness.The emergency response team follows the emergency plan to implementimmediate measures, notify relevant departments, and coordinate e?ortsfor swift investigation and resolution.EmergencyResponseMechanism

Emergency Response Team

Emergency PlanEmergency Handling

Phishing EmailsCovers common phishing tactics, identi?cationmethods, and countermeasures. Interactiveon-site exercises help employees recognize andrespond to phishing attempts e?ectively.

Secure Use and Protection of O?ce

ComputersFocuses on proper computer usage, security protectionmeasures, cybersecurity best practices, personalinformation protection, emergency response, and incidenthandling, strengthening overall corporate security defenses.Network Virus Attacks

Explains how viruses spread, how to detect them,

and how to prevent and recover from attacks.Employees take on-site tests to reinforceknowledge and improve threat prevention.

INFORMATION SECURITY TRAINING PROGRAM

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Case: Information Security Attack and Defense DrillsIn 2024, the Company meticulouslyorganized and conducted three roundsof information security attack anddefense drills. These drills simulatedpenetration attacks on the Company’score business systems by externalhacker organizations, focusing oninternal network security risks andemerging cybersecurity threats. Theexercises aimed to enhance employees’practical experience in responding tocybersecurity threats. The drillsachieved signi?cant results acrosstechnical, personnel, and managementlevels, e?ectively strengthening theCompany’s information securitydefense capabilities and improving itsemergency response preparedness.

Information Security Attack and Defense DrillsThe Company places great emphasis on building a strong information security culture by implementing an annual training plantailored to employees at di?erent levels and roles. These targeted training programs enhance awareness and practical skills, ensuringemployees can e?ectively protect corporate data and uphold security standards.

3.1.4 INNOVATION AND R&D

technological advancements to strengthen its capabilities in e-commerce and packaging. In 2024, our R&D investment reached RMB

124.43 million.The Company focuses on emerging ?elds such as cross-border social e-commerce and intelligent systems, creating a

competitive edge in the market. At the same time, Jihong remains committed to packaging solutions, o?ering a one-stop servicesystem that spans planning to sales, ensuring it meets the evolving needs of its customers while continuously re?ning its businessecosystem.

Jihong Group is actively driving intelligent transformation, developing an AI-powered social e-commerce model that integratesarti?cial intelligence with cross-border e-commerce. By leveraging social networks, big data analytics, machine learning, andautomation, the Company has established a closed-loop e-commerce ecosystem. Instead of traditional product marketing, Jihongapplies a “goods discovering people” approach, using AI-driven market analysis to build detailed user pro?les and match products tothe right customers. Through intelligent product selection and precise customer segmentation, Jihong e?ectively brings uniqueChinese products to global markets with greater accuracy and e?ciency.

INTELLIGENT ECOSYSTEM

Big Data Analysisfor Product Selection

ProductSelection

Page Design

AdvertisingPlacement

ProductProcurement

CustomerService Review

CustomerService Review

ShenzhenWarehouse Entry

Sorting and

Dispatching

InternationalExpress Shipping

Sign andPayment

LocalDelivery

InternationalExpress Shipping

Customer Rejection

CompanyFinancialCollectionLocal Delivery

Inbound toOverseasWarehouse

Ad Page Creation

Targeted Advertising

PlacementWarehouse Shipment

International Logistics

Distribution

Order Completion

Customer Places

an Order

JIHONG GROUP’SCROSS-BORDER E-COMMERCE“GOODS DISCOVERING PEOPLE”

BUSINESS PROCESS

Jihong Group combines social media and online shopping, adopting a “goods discovering people” proactive model to create a distinctcompetitive edge in marketing, operations, and supply chain management.

In 2024, Jihong Group continued re?ning its e-commerce system, tackling the complexities of long value chains, multiple touchpoints,and high digital operation demands in social e-commerce by upgrading core functional modules. With an R&D investment exceedingRMB 100 billion, the Company remains committed to AIGC, using AI to enhance the entire business process, covering product selection,marketing, and advertising placement. This year, it upgraded the GiiAI vertical model for intelligent e-commerce design, the G-kingintelligent advertising assistant, and the ChatGiikin vertical model for e-commerce text processing, driving business innovation andgrowth.

Jihong Group has developed an integrated smart warehousing system, leveraging digital technology to modernize traditionaloperations. This system boosts e?ciency, reduces supply chain risks, and enhances the overall shopping experience for consumers.

GiiAI: Vertical AI Model for IntelligentE-commerce Design and Content Generation

This model integrates AI tools for video,images, audio, and text, enabling e?cient andintelligent content creation and processing.

ChatGiikin: Vertical AI Model for E-Commerce Text Processing

Upgraded to ChatGiikin 2.0, the model now delivers enhanced capabilities, optimizedtraining data, and supports multi-task text generation and re?nement, continuously

improving intelligent interaction experiences.

R&D Department - G-king: Intelligent Advertising

AssistantIt integrates with Jihong’s business model toanalyze online data retrospectively and providereal-time insights. By combining online and o?inedata, it delivers comprehensive, data-driven

decision-making support.

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JIHONG GROUP’S CROSS-BORDER E-COMMERCE SALES MODEL

Goods

Utilize an AI-powered product selection platform to conductprecise product selection through big data.DiscoveringLeverage social networks such as Facebook, Google, andTikTok as marketing channels.Implement targeted marketing based on big data algorithms.

PeopleAccumulate a massive user base through the integration ofmobile internet and social networks.Apply user-centric product selection strategies, leveragingintelligent analysis of user pro?les to precisely matchproduct tags.

Discovering

PeopleGoods

Data

Accumulation

Intellig

e

n

t

P

r

o

d

u

c

t

Tra?c

M

o

n

e

t

i

z

a

t

io

n

SMART WAREHOUSING

JIHONG GROUP’S INTELLIGENT MODEL UPDATES

The implementation of the digitalstocking model can signi?cantlyincrease warehouse turnover rates. Itcan reduce inventory backlog andensure a smooth transition ofproducts from the warehouse to themarket, which signi?cantly enhancesthe e?ciency and agility of thesupply chain.

Inventory StockingModel

Our self-developed warehousemanagement system implements a“one product, one code” management policyfor all inventory items. The system allocates each itemto its designated storage location and updates theinventory records in real-time.The system is equipped with intelligent matching andproduct distribution capabilities to quickly prepareand deliver orders while reducing the risk of shippingerrors.The system can automatically intercept abnormalorders, and relevant personnel will take swift actionto ensure the problem is resolved in a timely manner.

WarehouseManagement System

Our intelligent weight and sizemeasurement system can rapidly andaccurately assess the weight and size ofpackages and provide precise logisticsdata to logistics and warehousemanagement teams.

Automatic WeighingSystem

By using event tracking on our online

store, we can collect user behaviordata to better understand user needs and

preferences. This allows us to improveour store’s user interface and shopping experience.

By analyzing user behavior data, our digital store

can recommend products that are tailored toindividual user preferences. This helps users easily

discover products they like and receive a better

shopping experience.

Digital Store

Our picking process is automated and

intelligent. Our warehouse systemautomatically generates the optimalpicking path, product location, andproduct information upon receiving anorder, and sends the data to the picker’s

PDA device. This system has made the

goods-picking process much more

convenient and e?cient.

IntelligentPicking System

We use an automatic packing device to

streamline our order processing andimprove the quality, e?ciency, andcost-e?ectiveness of our packaging.

Unpacking andPacking Device

JIHONG GROUP’S INTEGRATED SMART HOUSING SYSTEM

Jihong Group advances its packaging business through innovation, seamlessly integrating graphic design, solution optimization, andmarketing strategy to align with consumer needs in the FMCG market. The Company provides customized packaging solutions forglobal FMCG brands, including color box packaging, eco-friendly food packaging, color cartons, eco-friendly tote bags, and bundlepackaging. With a comprehensive supply chain service system, Jihong delivers one-stop packaging solutions from planning to sales,helping brands enhance their market value.

INNOVATIVE PACKAGING

INNOVATIVE COLLABORATIONINTELLIGENT ECOLOGY

JIHONG GROUP’S ONE-STOP PACKAGING SERVICES

-25-

Jihong Group has developed GiiMall, a professional cross-border e-commerce SaaS platform, enabling brands to expand globally withintelligent, one-stop solutions by using advanced data analytics and diverse online channels. In 2024, GiiMall further increased its R&Dinvestment, continuously optimizing system functionalities and upgrading core modules, including the GiiMall ERP LogisticsManagement System, GiiMall Snapchat Intelligent Placement System, GiiMall Product Selection System, GiiMall Financial AnalysisSystem, GiiMall Address Service System, and GiiMall Combination Promotion System. These improvements provide smarter, moree?cient operational support, ensuring seamless expansion for cross-border merchants.

Expanding Multi-Channel Online Sales SystemGiiMall is actively developing a sociale-commerce ecosystem that enables merchantsto e?ciently connect with target users. Theplatform syncs product information across majorsocial media channels and provides a centralizedoperations dashboard, allowing merchants tomanage multiple sales channels seamlessly andcoordinate omnichannel operations.

Intelligent Data Analytics ToolsPowered by AI and big data technologies, GiiMallanalyzes buyer behavior patterns, providingmerchants with deep business insights tooptimize decision-making. The platform operateson a shared infrastructure, reducing reliance onindependent hardware and improvingoperational e?ciency.

GIIMALL INTELLIGENT SOLUTIONS

In 2024, the Company received multiple cross-border services awards, highlighting GiiMall’s industry in?uence and outstandingcapabilities in the ?eld.

2024 GIIKIN CROSS-BORDER SERVICE HONORS

The 4th ChinaGo Cross-BorderE-Commerce Industry “AnnualBest Market In?uence Award”

2024 Amazon GlobalSelling “Future Star”

Top 50 Service Providersfor Chinese EnterprisesGoing Global

The Company upholds the core values of “responsibility, innovation, and achievement”, integrating cutting-edge research partnershipsand working closely with team partners and stakeholders. By promoting technological exchange, resource sharing, and collaborativeinnovation, the Company contributes to shaping the future of the industry.The Company further deepened industry-academia collaboration, establishing industry-university-research cooperation bases withWuhan University, Beijing Institute of Graphic Communication, and Hunan University of Technology. These partnerships drivetechnological advancements and support high-end talent development, ensuring sustainable industry development. During thereporting period, we collaborated with Hubei Engineering University to enhance the drying temperature control device in optical cableproduction, improving precision and intelligence in manufacturing processes.

Furthermore, leveraging its extensive experience in the packaging and printing industry, the Company actively contributes to thedevelopment of industry standards, driving industry innovation and upgrading. In 2024, the Company participated in the formulationof the Assessment Requirements for Quality Grading and Forerunner—Bundle Packaging, providing corporate expertise andprofessional recommendations to promote standardized industry development.

From February 2023 to December 2024, Jihong Group collaborated with Hubei Engineering University on the “Modi?cationand Development of Drying Temperature Control Device in Optical Cable Production” project. Addressing the challenges oflow drying e?ciency and high energy consumption in optical cable production, Hubei Engineering University developed aninnovative drying machine equipped with a drying chamber and dewatering unit. This equipment features precise dryingpower control and high-e?ciency dewatering, achieving a temperature control accuracy of ±1°C, operating with a powersupply of 2KW, and seamlessly integrating into the existing production line without interference. The project outcomes haveenhanced Jihong Group’s production e?ciency, reduced energy consumption, and demonstrated the Company’scommitment to innovation and sustainable development, setting a benchmark for the industry.

Case: Collaboration Between Hubei Engineering University and VStar Packaging (China) Limited onOptical Cable Drying Temperature Control Device Enhancement

Marketing Planning

Design/PlanOptimization

Manufacturing

Transportation and

Distribution

Sales

0102

NUMBER OF JIHONGGROUP’S SUPPLIERS IN 2024

Chinese Mainland40,187

Hong Kong, Macau,

Taiwan Regions of

China & Overseas

-26-

Jihong Group places great emphasis on sustainable supply chain development, implementing strict supplier lifecycle managementthrough policies such as the Supplier Management Procedures, Procurement Management Procedures, Centralized ProcurementManagement Measures, and Sunshine Integrity Action Cooperation Agreement. The Company integrates ESG requirements into itssupplier management system, conducting regular ESG risk assessments to enhance supplier capabilities. Jihong also maintains anactive supplier communication mechanism, engaging in training and collaboration to understand suppliers' needs, support mutualgrowth and reinforce its long-term sustainable development strategy.

3.2 SUPPLY CHAIN MANAGEMENT

The Company implements comprehensive oversight across supplier admission, management, and exit processes, utilizing anassessment and evaluation mechanism. By continuously re?ning supplier lifecycle management, the Company enhances riskidenti?cation, promotes responsible procurement, and strengthens overall supply chain resilience.

Jihong Group strictly complies with the Copyright Law of the People’s Republic of China and the Patent Law of the People’s Republicof China, establishing policies such as the High-Tech Enterprise Management System, the Management System for High-TechProjects and Patents and the Reward System for the Application of R&D Results. These policies form a comprehensive intellectualproperty protection framework and an innovation incentive mechanism, ensuring the application of R&D achievements. In 2024, theCompany ?led64 new patent applications, of which 53 were approved, and obtained 30 new software copyrights.

INTELLECTUAL PROPERTY PROTECTION

In 2024, we made signi?cant progress in technological innovation.

INNOVATION ACHIEVEMENTS

3.2.1 SUPPLIER ADMISSION AND EVALUATION

Conducts risk and integrity assessments on suppliers, verifying business licenses, management systemcerti?cations, production equipment, product quality speci?cations, compliance statements, and inspectionreports. Only suppliers meeting the Company’s procurement standards and passing internal evaluations andsample tracking are added to the quali?ed supplier list.Priority is given to ISO-certi?ed suppliers. In 2024, Jihong screened 38 suppliers based on certi?cationstandards, including labor regulations, product quality, service standards, and safety requirements, all ofwhom have obtained at least one ISO system certi?cation.

SUPPLIER LIFECYCLE MANAGEMENT PROCESSQuali?edAdmission

Conducts regular supplier performance evaluations and classi?cation, assessing product quality and servicecapabilities across the supplier lifecycle.Biannual assessments evaluate suppliers on cost, quality, service, delivery, and value-added contributionssuch as innovation, safety, and environmental protection. Optimization recommendations are provided toimprove supplier management.Suppliers are classi?ed into ?ve categories (A+, A, B, C, and D) based on evaluation results. D-class suppliers(below the threshold) are disquali?ed, while A+ suppliers (top performers) are given increased collaborationopportunities, ensuring the elimination of non-compliant suppliers.

DailyManagement

Suppliers that fail to meet assessment standards are issued a Corrective and Preventive Action Report,requiring them to submit recti?cation measures. If performance does not improve over three consecutiveprocurement cycles, the supplier is removed from the quali?ed list, procurement is halted, and their supplyquali?cation is revoked, o?cially terminating cooperation. In 2024, the Company terminated partnershipswith over 100 underperforming suppliers based on assessment results.Eliminationand Exit

The data collection scope for the company's supplier count in2024 includes both the packaging and e-commerce sectors.

Hohhot Jihong actively addressed the issue of misalignment between customer standard drawings and the carton erector,which caused severe jamming problems during production. Understanding the customer’s needs, the Company dispatchedtechnicians for multiple on-site investigations and follow-ups, leading to the proposal of a structural improvement plan forthe Jinze Milk Powder E-Flute Partition. Through continuous testing and re?nements, adjustments were made to thepartition structure, and after multiple rounds of validation, the issue was e?ectively resolved.

Selected for the ?rst batch of technology-based SMEs in Hubei Province in 2024.

Recognized as a Technology Innovation Demonstration Enterprise in Tangshan.

Received one second prize and one third prize in the Henan Provincial Science and

Technology Progress Awards.Case:Structural Improvement Proposal for Jinze Milk Powder E-Flute Partition

3.2.2 SUPPLY CHAIN ESG MANAGEMENT

Jihong Group continuously optimizes its sustainable supply chain strategy, embedding environmental and social risk managementinto every stage of operations. The Company prioritizes partnerships with suppliers that demonstrate strong ESG performance,enforcing strict warehousing management, quali?cation reviews, periodic evaluations, and audits to e?ectively mitigate supply chainrisks. At the supplier admission stage, Jihong assesses not only product quality and supply capabilities but also conducts sustainabilitybackground checks. This evaluation covers ESG performance, business ethics, compliance awareness, and records of corruption orbribery. To ensure a tailored approach, the Company applies di?erentiated risk assessment standards based on supplier scale andproduction characteristics, with a focus on product quality, environmental impact, and employee welfare.To reinforce ESG practices, ESG-related clauses have been integrated into annual supplier contracts and agreements, encouraginggreater accountability and supporting the green transformation of the supply chain. During the reporting period, no major risks orimpact events were identi?ed within the supply chain.

SUPPLIER ESG MANAGEMENT REQUIREMENTS

Suppliers must provide ISO 14001 Environmental Management System Certi?cation and demonstratestrong environmental management practices. Preference is given to suppliers using eco-friendlymaterials and energy-e?cient production processes, such as biodegradable packaging or optimizedenergy consumption.Suppliers must provide ISO 9001 Quality Management System Certi?cation and implement strictquality control measures to minimize resource waste caused by quality defects.

Environmental Protection andQuality Control

Health and SafetySuppliers must obtain ISO 45001 Occupational Health and Safety Management System Certi?cationand undergo assessments on worker safety measures. Preference is given to those with strongoccupational health and safety management.Chemical suppliers must provide a Hazardous Chemicals Business License, Environmental andSafety Assessment Report, Chemical Safety Data Sheets, and Compliance Declarations.

Suppliers must sign the Sunshine Integrity Action Commitment Letter, and comply with theSunshine Integrity Action Cooperation Agreement.Suppliers must adhere to fundamental laws and regulations, explicitly prohibiting corruption andbribery in contracts.Implements transparent procurement processes and conducts regular audits to mitigate corruptionrisks within the supply chain.

Compliance Managementand Anti-Corruption

Jihong Group has established a regular communication mechanism with suppliers, fostering long-term and cooperative partnerships.The Company provides training programs covering quality management, safety management, environmental practices, anti-corrup-tion policies, and integrity education, reinforcing sustainable business concepts and requirements. To ensure alignment with companystandards, new suppliers undergo systematic training for a clear understanding of management requirements and cooperationprocesses. Additionally, irregular training sessions are held to introduce updates to the supplier management system. Jihong alsoengages in ongoing discussions with suppliers, sharing insights on industry trends, emerging technologies, and best managementpractices. This collaborative approach strengthens trust, operational e?ciency, and business synergy, supporting the sustainabledevelopment of the entire value chain.

3.2.3 SUPPLIER COMMUNICATION

In 2024, the Company actively engaged in communication and collaboration with major raw paper and materialsuppliers, further enhancing its capabilities in raw material procurement, production optimization, and qualitycontrol.In May, the Company engaged in product discussions with ZKHIndustrial Supply Co., Ltd., covering topics such as productcharacteristics, usage methods, troubleshooting, storage andmaintenance, color management, process adaptability, and thelatest product applications. This exchange deepened mutualunderstanding of the products and laid a solid foundation forimproving collaboration e?ciency.

In August, the Company engaged in discussions with TEX YEARGROUP on a green materials strategy cooperation platform,focusing on ESG practices and achievements, the R&D andapplication of green products, and their advantages in carbonreduction and environmental protection. Both partiesconducted in-depth exchanges on product classi?cation,performance di?erences, storage, and usage considerations, aswell as analysis and solutions for common issues. Thiscollaboration enhanced mutual understanding and applicationof green materials, contributing to the sustainabledevelopment of the industry chain.In October, the Company engaged in discussions withQingdao Rongxin Industry & Trade Co., Ltd. onlamination processes, conducting in-depth exchangeson machine structure, working principles, and processhandling at various stages. This collaboration providedstrong support for optimizing production processesand improving product quality, helping to enhanceproduction e?ciency and market competitiveness.

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We have incorporated safety management into performance assessments, developing incentive and accountability mechanisms tocontinuously improve safety standards. The evaluation system includes annual and monthly safety assessments, combining quantita-tive and qualitative methods to measure incident rates, management e?ectiveness, and performance-based incentives. Based on theannual safety management objectives, the Company formulates the Annual Safety Management Objective Responsibility Agreement,ensuring that departments and personnel at every level sign safety objective responsibility agreement.

3.3 HEALTH AND SAFETY

Jihong Group upholds a “people-oriented, safety-?rst, prevention-focused, and comprehensive management” approach, implement-ing structured initiatives to ensure workplace safety and occupational health. The Company is committed to fostering a safe, healthy,and comfortable work environment through proactive safety measures. In 2024, the Company released the 2024 Safety andEnvironmental Management Work Plan, setting clear work safety goals to ensure that occupational health and safety protocols aree?ectively implemented throughout the year.

3.3.1 WORK SAFETY

The Company strictly complies with the Work Safety Law of the People’s Republic of China and other relevant laws and regulationsby establishing a comprehensive safety management framework. The Company has developed policies such as the Production SafetyManagement System, the Comprehensive Contingency Plan for Workplace Accidents, the Safety Risk Classification and Control,Hidden Danger Investigation and Management System, and the Fire Safety Management System. These regulations clearly de?nesafety responsibilities for construction-related entities, standardize safety and civilized inspection criteria, and enforce strict measuresto prevent violations and unsafe practices, ensuring the e?ective implementation of safety responsibilities.

JIHONG GROUP’S 2024 WORK SAFETY DAILY MANAGEMENT MEASURESOptimization of SafetyRegulations and Systems

Safety Policy Learning and

Training Programs

Investigation of Major

Accident Hazards

Emergency PlanDevelopment and DrillsJihong Group hascomprehensively updatedsafety regulations to alignwith national laws, industrystandards, and operationalneeds. The revisions includenew equipment operationguidelines and specialworking environmentprotection measures,ensuring full safety coverageacross all productionprocesses. Each departmentand position has clearlyde?ned responsibilities,supported by a Work SafetyResponsibility List. By signingresponsibility agreements,Jihong has implemented acomprehensive accountabili-ty system, ensuring bothhorizontal and verticalcoverage across all levels ofthe organization.

Jihong conducts regularcompany-wide safetytraining sessions, coveringregulations, operatingprocedures, and emergencyresponse protocols. Trainingis delivered throughtheoretical instruction,on-site demonstrations, andcase analysis to strengthenemployees’ safetyawareness. Monthly safetyknowledge updates inviteindustry experts to interpretregulations and analyzereal-world accident cases.Additionally, specialized skilltraining is provided forspeci?c roles, such aselectrical safety and specialequipment operation,ensuring employees have thepractical skills needed forsafe operations.

Jihong Group conductsmonthly self-inspections andcorrective actions toproactively identify andeliminate potential hazards.In accordance with theStandards for Determiningthe Potential Risks of MajorAccidents of Enterprises, theCompany focuses on keyareas, facilities, equipment,and processes, analyzinghazard causes, correctivemeasures, and challenges toensure early risk mitigation.The Company assesses andcategorizes hazards based onrisk levels, then appliestargeted control measures.High-risk issues areaddressed ?rst, ensuringsafety resources areallocated e?ciently.

Jihong Group hasestablished a comprehen-sive emergency responsesystem to address incidentssuch as ?res, mechanicalfailures, electric shocks, andnatural disasters. Theseplans are regularly reviewedand updated to comply withcurrent regulatoryrequirements. To strengthenpreparedness, full-scaleemergency drills areconducted every six months,covering ?re response,alarm activation,evacuation, and coordinatedemergency actions.Additionally, specialtabletop drills are held toenhance interdepartmentalcoordination, ensuring aswift and e?ective responsein critical situations.

JIHONG GROUP WORK SAFETY PERFORMANCE IN 2024

0peopleNumber of work-related

fatalities

0%

Work-related fatalityrate

1,857days

Lost workdays due towork-related injuries

RMB4.6652million

Investment in work

safety measures

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Under the Work Safety Responsibility System, Jihong has established a Work Safety Management Committee to oversee occupationalhealth and safety. This system standardizes personnel safety management and occupational disease prevention, while clearly outliningthe responsibilities of supervisory and construction units. These measures provide strong support for maintaining a safe, regulated,and well-managed work environment.

SAFETY MANAGEMENT SYSTEM

Case: Safety Emergency Drill Activities

In 2024, Jihong Group actively conducted safety emergency drills to enhance employees’ response speed and handlingcapabilities in unexpected situations. By simulating real-life scenarios, the drills ensured that employees could quickly ande?ectively implement emergency measures, safeguarding employee safety in critical situations.

The Luanzhou FactoryThe Huanggang Factory

Case: “Work Safety Month” ActivityIn June 2024, Jihong Group, together with its subsidiary production sites, launched the “Work Safety Month” campaign underthe theme “Everyone Talks about Safety, Everyone is Capable of Emergency Response - Keeping the Life Channels Unobstruct-ed.” Through promoting safety culture, the campaign aimed to enhance employees’ awareness of workplace safety, reinforcecompliance with safety regulations, and improve overall safety management standards. By conducting this initiative, theCompany systematically identi?ed and mitigated potential accident risks, contributing to the long-term stability of workplacesafety and ensuring the smooth operation of production and business activities.

The Jinan Factory

The Langfang Factory

The Xiaogan Factory

The Anhui Factory

Case: “Fire Prevention Publicity Month” ActivityIn November 2024, Jihong Group launched the “Fire Prevention Publicity Month” campaign under the theme “Fire Safety forAll, Life is Supreme.” A series of diverse activities were organized, including awareness education, on-site drills, and hazardinspections, e?ectively enhancing employees’ ?re safety awareness and emergency response capabilities. This initiativecontributed to ensuring stable and orderly company operations, creating a safe environment that supports the Company’slong-term sustainable development.

The Hohhot FactoryThe Xiamen Factory

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The Company has formulated the Related Party Safety Management System to strengthen the review and management of contractorsand suppliers, working together to build a stable supply chain. The Safety and Environmental Department oversees contractor safetymanagement, while the Procurement Department facilitates safety communication and coordination. Together, they have establisheda comprehensive contractor lifecycle safety risk management system. All contractors must sign the Safety Management Agreementand complete mandatory safety training, clearly outlining occupational safety responsibilities and work requirements. These measureshelp minimize safety risks and maintain compliance. In 2024, Jihong Group recorded zero occupational safety incidents involvingcontractor employees.

The Company places great importance on safety culture development, integrating safety education into daily operations through itsSafety Education and Training System. By conducting regular safety training programs, the Company continuously enhancesemployees’ safety awareness and professional skills. Additionally, for key position employees, specialized safety management trainingis provided to further strengthen safety management capabilities.In 2024, the Company conducted multiple safety training sessions across all production sites, covering topics such as solid wasteclassi?cation and disposal, hazard identi?cation, special equipment use, workplace safety laws, and safety management forspecialized operations. By combining theoretical instruction, case analysis, and hands-on training, Jihong ensures that safety protocolsare e?ectively implemented, maintaining a secure workplace and stable production environment.

RELATED PARTY SAFETY MANAGEMENT

SAFETY CULTURE CONSTRUCTION

ISO 45001 Occupational Health andSafety Management System Certi?cation

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3.3.2 OCCUPATIONAL HEALTH AND SAFETY

Jihong Group strictly complies with the Law of the People’s Republic of China on Prevention and Control of Occupational Diseasesand other relevant regulations, formulating the Occupational Health Management System and implementing international occupation-al health and safety management standards. The Company has established an Occupational Disease Prevention Task Force to enhanceits health and safety management system. In 2024, Jihong introduced the Occupational Hygiene Management System, which coversoccupational disease prevention, hazard warnings, protective facilities, and health monitoring, further standardizing workplace healthmanagement and reducing employee risks.The Company regularly conducts ISO 45001 Occupational Health and Safety Management System audits, management reviews, andthird-party supervision audits to ensure its occupational health and safety system remains e?ective and compliant. Any identi?edissues are promptly addressed to maintain high standards. As of the end of the reporting period, 9 out of 10 factories have obtained ISO45001 certi?cation.

Case : Occupational Health Training

In 2024, the Company conductedmultiple occupational health trainingsessions, covering topics such asunderstanding occupational diseases,heatstroke prevention in hightemperatures, and occupationalhygiene knowledge. These sessionspromoted awareness of occupationaldisease prevention laws, regulations,

and protective measures. Throughthematic lectures and case studies, the

training enhanced employees’

occupational health literacy,strengthened self-protection

awareness, and contributed to the

development of a health-conscious

workplace.Occupational Health Thematic

Training Courses

JIHONG GROUP’S EMPLOYEE OCCUPATIONAL

HEALTH OVERVIEW IN 2024

Number of Employeesin Occupational DiseaseRisk Positions

Number of EmployeesParticipating in Occupational

Health Check-ups

Number of EmployeesDiagnosed withOccupational Diseases

Occupational Healthand Safety InvestmentAmount739People766People0PeopleRMB 709.5thousand

To safeguard employees’ occupational health, the Company conducts regular health training to enhance self-protection awareness.The Company also provides annual health check-ups, with specialized medical examinations for employees in high-risk positions,reinforcing workplace health protection. In accordance with the Regulations on Work-Related Injury Insurance Management, theCompany ensures that employees’ rights are safeguarded in the event of work-related injuries. This includes timely medicaltreatment and ?nancial compensation, promoting a safe and healthy work environment.

AS OF THE END OF THE REPORTING PERIOD, 9 FACTORIES HAVE

OBTAINED ISO 45001 CERTIFICATION.

Jihong Group adheres to compliant employment practices, fostering a diverse and inclusive corporate culture. The Company strictlycomplies with the Labor Law and the Labor Contract Law of the People’s Republic of China, continuously re?ning internal policiesto uphold equal treatment and opportunities for all employees. Through the Cooperate Social Responsibility (CSR) ManagementManual, Jihong ensures fairness in recruitment, employment, evaluation, promotion, and retirement, explicitly prohibiting discrimina-tion based on gender, age, religion, nationality, marital status, race, or disability. Employees performing the same work with equalcontributions and results receive equal pay and bene?ts, ensuring fair treatment across the organization.The Company maintains a zero-tolerance policy against child labor and forced labor, implementing strict preventive measures. Incompliance with the Law of the People’s Republic of China on the Protection of Minors and the Provisions on the Prohibition ofUsing Child Labor, and stipulated by the Cooperate Social Responsibility (CSR) Management Manual and its subsidiaries are requiredto verify employee identity during recruitment, ensuring no minors are employed. All forms of forced labor are strictly prohibited. If asuspected case arises, an immediate investigation is conducted, with disciplinary action taken against responsible personnel. In 2024,no incidents of child labor or forced labor were reported within the Company.We place great emphasis on building a diverse talent pipeline, developing position-speci?c recruitment plans to attract professionalswith relevant expertise, skills, and experience. Talent acquisition is carried out through campus recruitment, online media platforms,and headhunting services, ensuring a multi-tiered workforce that supports the Company’s growth. Additionally, we encourage there-employment of retired technical personnel, actively recruit minority groups, and increase the representation of female executives.These e?orts contribute to a balanced, diverse, and high-performing corporate environment. In 2024, the Company had4,324

employees, including40 employees with disabilities.

JIHONG GROUP’S EMPLOYMENT IN 2024

Total Number of Employees 4,324 PeopleEmployee Turnover Rate

19.39 %

2,161Male

Number ofEmployeesby Gender

1,831

1,516

Number ofEmployees

by Ag

Number ofEmployeesby Education

3,685

General Sta?Middle ManagerNumber ofEmployees byEmployment

Type

Number ofEmployeesby Region

4,321

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Jihong Group actively fosters a diverse, inclusive, and progressive corporate culture, prioritizing employee rights and professionalwell-being. The Company implements an inclusive talent strategy and has established a comprehensive talent development system,ensuring that employees’ career growth aligns with corporate goals. By focusing on talent acquisition and retention, Jihong supportsindividual development while driving shared success for both employees and the Company.

JIHONG GROUP’S RECRUITMENT CHANNELS

Case: “Hongyu Program” Management Trainee Recruitment ProjectIn 2024, Jihong Group o?cially launched the“Hongyu Program” Management TraineeRecruitment Project, conducting campusrecruitment during both the spring and autumnhiring seasons at multiple industry-focuseduniversities, including Southwest JiaotongUniversity, Hunan University of Technology, andBeijing Institute of Graphic Communication. Thisinitiative provided students with valuable careerdevelopment opportunities. Through theHongyu Program, the Company hired 8 traineesduring the spring hiring season and 19 traineesduring the autumn hiring season, supportingnewcomers in their rapid professional growthwhile injecting fresh talent, innovation, andcompetitiveness into the Company.

Campus RecruitmentSocial RecruitmentHeadhunting Recruitment

Establish strategic partnerships

with major universities andcolleges, creating a long-termcooperation framework to attract

dynamic and innovative

graduates, ensuring a steadytalent pipeline.

Recruit through leadingdomestic job portals,professional talent websites,and regional recruitmentplatforms, bringing in externaltalent with diverse industryexperience and perspectives.

Works with headhunting?rms and talent agencies

to recruit mid-to-se-nior-level professionals,ensuring high-quality hiresand recruitment e?ciency.

31-40

30 and below51 and above

41-50

1,913

1,422

Undergraduate

Below Junior College

Graduate Above

Junior College

ChineseMainland

Outside Chinese Mainland

Employee Turnover Rate by GenderEmployee Turnover Rate by Age

19.03%

19.74%

MaleFemale

23.99%

16.98%

12.03%16.48%

30 and below31-4041-5051 and above

3.4 TALENT DEVELOPMENT

3.4.1 DIVERSITY, EQUALITY, AND INCLUSION

2,163Female229Senior Manager

Case: Occupational Health Check-up

The Company regularly organizesoccupational health check-ups,providing employees withcomprehensive medical examinationsto detect potential health issues early.Additionally, professional doctors areavailable for health consultations,o?ering personalized healthrecommendations, demonstrating theCompany’s commitment to employeewell-being.

Case: Annual Outstanding Team Building Activity

In 2024, Jihong Group’s Luanzhou and Langfangfactories organized an annual outstandingteam-building activity in Shanhaiguan, Qinhuangdao.The team visited Shanhaiguan Pass, Laolongtou, andother historical sites, experiencing the rich heritage ofChinese culture. Through team collaboration gamesand historical cultural learning, employees not onlyrelieved work-related stress but also enhancedcommunication and trust, injecting new energy andmotivation into their future work.Annual Outstanding Team Building Activity On-Site

2024 Annual OccupationalHealth Checkup On-Site

Case: Heart-to-Heart Meetings - Listening to Employees’ Voices

The Company regularly organizes heart-to-heart meetings, creating a relaxed and welcoming atmosphere withrefreshments to encourage employees to openly discuss topics such as corporate culture, management policies, and thework environment. Through these sessions, employees can share their thoughts and suggestions, foster mutualunderstanding and trust, and strengthen team cohesion, collectively driving the Company’s growth and development.

Summary Session at the Heart-to-Heart Talk MeetingSpeech Session at the Heart-to-Heart Talk Meeting

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3.4.2 EMPLOYEE RIGHTS PROTECTION

Jihong Group is committed to protecting employee rights, adhering to the principles of “compliance, fairness, motivation, competitive-ness, and resilience”. The Company has established the Compensation and Management System, Performance Management System,and Packaging Business Performance Management System, continuously improving its compensation and bene?ts framework. Byimplementing company-wide incentive policies, Jihong enhances organizational vitality and supports long-term corporate growth. TheCompany has also developed a performance incentive and evaluation system, ensuring transparent communication and feedback.Compensation structures are tailored based on business units, job roles, and responsibilities, o?ering: performance-based salary,annual salary system, commission-based salary, and piece-rate salary, ensuring that employees’ rights are fully protected.Beyond salaries, Jihong provides comprehensive bene?ts to support employees’ well-being. The Company provides annual healthcheck-ups, ensuring employees maintain good health. Employees also receive holiday gifts, various subsidies, and recognition rewardsfor long-term service. To promote work-life balance, Jihong organizes cultural activities to enrich employees’ leisure time and reducework-related stress. Through this well-rounded bene?ts system, employees receive both ?nancial rewards and emotional support.

The Company values open communication and respects employees' right to information and oversight. To regulate employee rightsappeal mechanisms, the Company has established the Cooperate Social Responsibility (CSR) Management Manual and Labor DisputeManagement System. A dedicated communication platform has been set up, allowing employees to share feedback through forumsand suggestion boxes. The Company actively adopts reasonable suggestions, promptly addresses concerns, and ensures timelyresolutions, reinforcing its commitment to protecting employees’ rights and interests.

Case: Holiday Bene?ts

The Company consistently upholds a people-orientedapproach. During major festivals such as Spring Festival,Mid-Autumn Festival, and International Women’s Day,the Company prepares holiday bene?ts and distributesfestive gifts to all employees. These gestures recognizetheir hard work and dedication, fostering a sense ofbelonging and care within the Company.International Women’s Day Celebrationat the Ningxia Factory

JIHONG GROUP’S TALENT DEVELOPMENT PLANS

The Giikin Management Trainee Programis designed to cultivate versatile talentswith expertise in both business andmanagement. Over 12 months, trainees gothrough rotational assignments,structured training, and performanceevaluations to build their skills andadaptability. Trainees rotate through rolessuch as Business Assistant, OptimizationSpecialist, and Product SelectionSpecialist, gaining hands-on experiencethrough company onboarding, businessrotations, and competitive placementexercises. The program is supported bymentorship, regular evaluations, andquarterly reviews, ensuring continuousdevelopment. At the end of the program,trainees are placed in roles that matchtheir skills and interests, helping themgrow while contributing to the Company’ssuccess.

Giikin ManagementTrainee Program

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The program covers four stages:

selection, development,appointment, and retention. In theselection stage, the focus is onidentifying high-potential, highlycommitted, and highly quali?edtalents. The development stage isbased on a work-study approach,combining on-the-job training,classroom learning, andmentorship to set clear growthobjectives, and provides dualcareer paths in both technical andmanagerial roles. The retentionstage o?ers performance bonuses,salary adjustments, and promotionincentives to support the long-termdevelopment and stability of coretalent.

Jihong Group StrategicTalent Cultivation Project

“Hongyu Program”

3.4.3 EMPLOYEE TRAINING AND DEVELOPMENT

Jihong Group is dedicated to the career development of its employees. By providing a structured talent development system and clearpromotion pathways, the Company helps employees achieve continuous progress and professional breakthroughs. Through diversetraining programs and access to varied resources, employees are encouraged to develop their skills, realize their potential, and growalongside the organization.

The Company is committed to establishing a scienti?c talent pipeline development mechanism and has formulated the EmployeeCareer Development Management System. It conducts regular talent assessments and builds a personnel mechanism where “thecapable rise, the mediocre step aside, and the incomplete leave.” Through initiatives such as management trainee programs,leadership development plans, and strategic talent cultivation projects, employees are guided toward career paths that align with theirstrengths. This approach not only supports individual professional growth but also ensures the Company’s strategic implementation.

TALENT DEVELOPMENT AND PROMOTION

The Company identi?es high-potentialemployees through talentassessments and evaluations,preparing them for key leadershiproles. Development e?orts includehands-on project assignments,mentorship programs, and leadershipcourses, equipping employees withthe skills needed for managementpositions. Quali?ed individuals arepromoted through directappointments or internal selectionprocesses, ensuring a strong pipelineof capable leaders. This program helpsbuild a talent pool for roles such asVice Presidents, department heads inproduction, PMC, quality, andequipment management, as well asfrontline team leaders, supportingboth employee career growth.

Jihong GroupManagement TalentDevelopment Plan

TACT Development Model, a succession talent cultivation framework centered on four key elements: Training, Self-Arise, Coaching, and Task Assignment.

Case: Professional Skills Examination

In 2024, to support employeecareer advancement, theCompany conducted acomprehensive “Instrumentand Meter MaintenanceTechnician Professional SkillsCerti?cation Examination.”This assessment not onlyprovided employees withpromotion opportunities butalso enhanced theirprofessional skills throughsystematic training andpractical evaluations. Thisinitiative contributed toindividual growth and thecultivation of high-qualitytechnical talent, drivingtechnological innovation andprogress for the Company - atrue win-win for bothemployees and the Company.

Instrument and Meter MaintenanceTechnician Professional SkillsCerti?cation Examination

Meanwhile, the Company applies the TACT Development Model[ TACT Development Model

, a succession talent cultivation frameworkcentered on four key elements: Training, Self-Arise, Coaching, and Task Assignment.], which de?nes clear career-level progressionpaths within promotion assessments. Employees are evaluated on several factors, including technical pro?ciency, professionalcompetence, and management skills. Based on their individual strengths, employees are given personalized development plans andobjectives. This approach maximizes the potential of core talent at all levels, boosts employee engagement, and supports faster careergrowth.

Management Trainee Camp

Training is conducted for communication skills, professional etiquette, o?ce skills, and job skills for new employees to

assist their role transition from campus to workplace.

Supplier Reverse Empowerment

Suppliers provide empowerment training to employees of related departments, enhancing their equipment operation skills.

Key Positions(Competency Development)Professional skill training is conducted for employees in key positions to enhance their job competency.

Management Leaders-Senior ManagersEnhance the ability of senior managers to systematically integrate vision, strategy, organization and culture, while

fostering core competencies for the enterprise.

-Middle ManagersImprove the various management skills needed for middle managers to achieve the goals of the Company.

-Junior ManagersImprove the basic management skills and abilities such as planning, control, and improvement needed for junior

managers to complete work tasks.

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Case: Personal Income Tax Themed Training

In July 2024, Jihong Group conducted atraining session focused on personalincome tax. The session explained therelevant laws and regulations, taxdeclaration procedures, and specialadditional deduction policies. Byincorporating real-life case studies, thetraining helped employees betterunderstand and apply personal incometax incentives, enhancing the accuracyand compliance of their tax ?lings.Personal Income Tax TrainingSession at Xiaogan Factory

Case: “Learn from the Benchmark, Become a SkilledPractitioner” Job Skills Competition

In November 2024, Jihong Group organized an engaging job skills competition under the theme “Learn from the Best,Become a Skilled Practitioner”. This event provided frontline workers with a platform to re?ne their techniques, exchangetechnical know-how, and showcase their skills. Competition events included roles such as box nailing, die cutting, handlethreading, and paper mounting. The event sparked enthusiasm among employees to learn new technologies, masteressential skills, and demonstrate their abilities, thereby fueling the development of a knowledgeable, skilled, and innovativeworkforce within the Company.

Skills Competition Event Venue

We prioritize employee development by establishing policies such as the Training Management System, which standardizes trainingprocedures and requirements. Tailored to di?erent job functions and levels, we o?er a range of di?erentiated training programs thataddress the speci?c growth needs of each employee group. This ensures employees’ skills evolve alongside the Company’s needs. In2024, employees collectively completed 43,691 hours of training, averaging 10.1 hours per employee.

EMPLOYEE TRAINING

JIHONG GROUP’S EMPLOYEE

TRAINING IN 2024：

43,691

hoursTotal training hours for all employeesof the company

10.1

Average training hours per employeehours

JIHONG GROUP’S TRAINING PROGRAMS

3.5 SOCIAL WELFARE

Case: Cleaning Up for Civility - Demonstrating Voluntee Commitment

On April 2024, the Zhengzhou Giikin Party branchof the Communist Party of China (CPC) organized avolunteer service event titled “Youth in My Heart,Environmental Protection in My Actions.” Branchmembers gathered at a sculpture park to collectand sort litter scattered throughout the area. Thisinitiative enabled participants to contribute tourban environmental protection while deepeningtheir awareness of environmental issues. It furtherinspired a sense of responsibility and mission inpracticing green development principles. Theevent not only underscored the Company’scommitment to social responsibility but alsostrengthened team cohesion and fostered apositive cultural atmosphere within theorganization, achieving a win-win for bothcorporate and social values. “Youth in My Heart, Environmental Protection in My Actions” Volunteer Service ActivityCase: Senior CPC Members Care Initiative

In June 2024, on the eve of the FoundingAnniversary of the CPC (July 1st), Giikin inZhengzhou organized a care initiative for seniormembers of the CPC. The event extended heartfeltfestival greetings and sincere care to CPCmembers aged 65 and above, recognizing theirsigni?cant contributions to the Party’s cause andsocietal development. This initiative deepened thebond between the Company and the community,allowing senior party members to experiencesocial warmth and respect. It also promoted thecherished tradition of honoring the elderly andvenerating wisdom, inspiring all employees tofollow these senior role models, inherit the redspirit, and contribute even more to both theCompany’s development and social progress.Senior CPC Members Care Event

Case: Establishing a Care Station for the “Warm Winter Solstice,

Love Transfer” Charity Event

In December 2024, Zhengzhou Giikin, incollaboration with the local community, set up acare station to extend winter warmth to outdoorworkers - such as sanitation sta?, deliverypersonnel, tra?c assistants, and security andcleaning personnel - as well as special groups likeelderly people living alone. During the event,volunteers distributed handmade and freshlycooked dumplings, along with care packages thatincluded warm clothing and essential householditems. This initiative ensured that those who workdiligently in the cold and vulnerable seniors couldfeel the warmth and support of society. Giikin’se?orts exemplify the spirit of ‘mutual support andsocial inclusion,” and the Company remainscommitted to continuing this mission by providingwarmth and assistance to more people in need. “Warm Winter Solstice, Love Transfer” Charity Event

Case: Joint “Share the Love, Spread the Warmth” Volunteer Campaign

In December 2024, Giikin joined forces with theChina Charity Federation to launch the “Sharethe Love, Spread the Warmth” volunteercampaign, aimed at bringing care and warmth topeople in impoverished areas. During the event,Giikin organized both employees andcommunity members to donate used clothing.The China Charity Federation then handled thesecond-stage cleaning, sorting, and disinfectionof the garments, ensuring that every item wassafely and neatly delivered to those in need. Thisinitiative provided practical support to alleviatethe living pressures of disadvantaged groupsduring the cold winter months. “Share the Love, Spread the Warmth” Volunteer Event and Thank You Letter

Jihong Group actively ful?lls its social responsibilities by sharing the fruits of development with society. The Company leverages its resources uses its resources to support vulnerable groups through various public welfare projects, and encourages employees to get involved in communitybuilding and charity through volunteer work, helping create a harmonious society. We organize activities such as community clean-ups, visiting and supporting senior members of the Communist Party of China, establishing care stations for outdoor workers o?ering water and rest areas, anddonating used clothing to mountainous regions in need. These actions aim to give back to society, spreading warmth and positivity.In 2024, employees participated in volunteer activities for a total of 146 person-times, contributing 421 hours of service, with public welfare projects receiving an investment of RMB 30,500.

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4 GOVERNANCE: ENHANCING GOVERNANCEJihong Group adheres to the principles of compliance and transparency in its operations, continuously re?ning its corporategovernance to improve risk management, uphold ethical standards, and maintain a scienti?c, robust, and e?ective operationgovernance framework. This provides a solid foundation for the Company’s sustainable development.

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

The Board of Directors, as the Company’s permanent body, is responsible for setting businessplans and investment strategies, convening Shareholders’ Meetings, and executing theirresolutions. The Board is directly accountable to the Shareholders’ Meeting.In 2024, the Company held 12 Board of Directors meetings, with a 100% attendance rate amongboard members.

The Shareholders’ Meeting, as the Company’s highest governing body, is responsible for decidingbusiness strategies and investment plans. It has the authority to appoint and dismiss directors andsupervisors and make key company decisions.The Company follows strict procedures for convening, conducting, and voting in Shareholders’Meetings. A structured communication strategy is in place to encourage participation, ensuringthat all shareholders, including minority shareholders, have equal standing and legal rights.In 2024, the Company held 8 Shareholders’ Meetings.

Shareholders' Meeting

Senior Management

Board of Directors

The Board of Supervisors is responsible for supervising the conduct of directors and seniormanagement, as well as overseeing ?nancial activities to protect the interests of the Company andits shareholders.The Board of Supervisors is composed of 3 members, and in 2024, the Company convened 8 Boardof Supervisors meetings.

Board of Supervisors

THE COMPANY’S THREE-COMMITTEE GOVERNANCE STRUCTURE

Jihong Group regards a robust corporate governance system as the cornerstone of its high-quality, sustainable development. With afocus on governance excellence, the Company continually strengthens its framework, fosters diversity within the Board of Directors,improves decision-making processes, safeguards investor rights, and ensures stable, sustainable operations.

Jihong Group strictly adheres to laws and regulations such as the Company Law of the People’s Republic of China, the SecuritiesLaw of the People’s Republic of China, the Stock Listing Rules of the Shenzhen Stock Exchange, and other relevant regulations. TheCompany has established internal policies such as the Articles of Association, Rules of Procedure for Shareholders’ Meetings, and theRules of Procedure for the Board of Directors. The company's management and decision-making framework is composed of theShareholders’ Meeting, Board of Directors, Supervisory Board, and senior management. Director elections and appointments follow afair and transparent process, ensuring a governance system that is e?cient, compliant, and stable while safeguarding the interests ofboth the Company and its shareholders.The Board of Directors has established specialized committees, including the Strategy Committee, Audit Committee, NominationCommittee, and Remuneration and Assessment Committee. These committees report directly to the Board, o?ering guidance on keymanagement decisions and overseeing the implementation of resolutions to maintain e?ective governance. As of the reporting period,the Board consists of 11 members, including 6 non-independent directors and 5 independent directors, with independent directorsmaking up 45% of the Board.

4.1 CORPORATE GOVERNANCE

4.1.1 BOARD OF DIRECTORS STRUCTURE

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Jihong Group values diversity in its Board of Directors and considers factors such as gender, age, professional background, andeducation when selecting or replacing members. Board members are expected to have a well-rounded mix of expertise, including astrong understanding of their roles, industry experience, and professional knowledge in ?nance, law, and corporate management.This combination ensures informed and e?ective decision-making. To promote stability, the Company has implemented a structuredremuneration system that incentivizes directors and senior executives to actively carry out their responsibilities. As of the end of thereporting period, Jihong Group’s Board includes 2 female directors.

4.1.2 DIVERSITY OF BOARD OF DIRECTORS

Jihong Group is guided by investor needs and adheres to the principles of openness and transparency in information disclosure,maintaining a clear and e?cient communication mechanism with investors. The Company shares its management philosophy,corporate culture, and business performance through shareholders’ meetings, earnings brie?ngs, and other platforms. To protectinvestor and shareholder interests, the Company continuously strengthens its shareholder return mechanism, fostering a balancedrelationship between the Company and its shareholders while supporting sustainable development.COMPOSITION OF A DIVERSE BOARD OF DIRECTORS

Positions

Non-Independent DirectorsIndependent Directors

NameWANG YapengZHUANG HaoZHANG HepingZHUANG Shu

LU TashanLIAO ShengxingZHANG GuoqingYANG ChenhuiHAN JianshuXUE YonghengWU Yongqian

MaleFemale

Male

Male

Male

Male

Male

Male

Male

MaleFemale

CM

M

CM

M

M

CM

M

M

C

GenderAge

Committee Appointment StatusStrategyCommittee

AuditCommittee

NominationCommittee

Remuneration

andAssessmentCommittee

4.1.3 INVESTORS COMMUNICATION MECHANISM

C - Chairman of the relevant Board of Directors M - Member of the relevant Board of Directors

Investor CommunicationShareholder Returns

The Company actively engages with investors through multiple channels, including publicannouncements, interactive Q&A sessions, performance brie?ngs, investor hotlines calls, emailresponses, the o?cial website, and WeChat public accounts. These e?orts foster long-term,mutually trusting relationships. During the Reporting Period, the Company held2 earningsbrie?ngs, responded to68 interactive Q&A sessions, and issued 160 announcements.

The Company continually enhances its shareholder return mechanism, carefully consideringinput from shareholders, independent directors, and supervisors, with particular attention tominority shareholders. In line with its pro?t distribution policy, cash dividends remain apriority, ensuring stable returns while maintaining a fair balance between shareholderinterests and the Company’s long-term growth.

In 2024, the Legal Department conducted a training session focused on procurement contract risk management. The trainingcovered essential legal knowledge related to procurement contracts as well as tips on common pitfalls encountered duringpractical operations. This helped management personnel quickly grasp the relevant legal concepts, avoid risk factors in dailyoperations, and e?ectively communicate compliance requirements to their teams. Nearly 30 participants attended, includinggeneral managers of subsidiaries and department heads at both headquarters and subsidiaries, signi?cantly enhancing the riskcontrol capabilities of the Company’s management team.

Case: Procurement contract risk management training

JIHONG GROUP’S RISK MANAGEMENT FRAMEWORK AND RESPONSIBILITIESBoard of Directors

Audit and FinancialManagement CenterAudit CommitteeOversees overall risk managementand business operations.

Functions as a specializedcommittee under the Board,providing guidance and supervisionfor risk management activities.

Reports regularly to the AuditCommittee, monitoring internalcontrol systems to ensure that theyare properly established ande?ectively implemented.

JIHONG GROUP’S BUSINESSETHICS MANAGEMENT SYSTEM

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Jihong Group continuously strengthens its risk management framework by clearly de?ning responsibilities at every level, activelyidentifying and addressing risks, and re?ning control measures. At the same time, the Company places great emphasis on fostering astrong risk awareness among all employees, providing robust support for the long-term, stable development of its business.

4.2.1 RISK GOVERNANCE

Jihong Group adheres to the principle of “knowable, controllable, and bearable” and has established a Comprehensive Risk Manage-ment System that outlines clear risk control requirements across all operations, with a focus on managing key risks. The Company’srisk management framework includes the Board of Directors, Audit Committee, and Audit and Financial Management Center, withwell-de?ned roles across functional units to ensure e?ective implementation and oversight of risk management.

4.2.2 RISK IDENTIFICATION AND RESPONSE

The Company continually optimizes its risk management processes by systematically identifying, assessing, and addressing risks, andmaintaining a comprehensive risk register. In 2024, key risks were identi?ed across production and operations, covering criticalbusiness cycles such as procurement, production, and sales management, along with essential areas like logistics and assetmanagement. Targeted control measures have been implemented to prioritize and manage risks e?ectively, strengthening overall riskmanagement. To ensure thorough oversight, risk management audits are conducted regularly as part of the internal control auditprocess. This includes annual self-assessments and external third-party audits. During the Reporting Period, no signi?cant risks ormajor concerns were identi?ed.RISK MANAGEMENTPROCESS AND MEASURES

Each department collects initial internal and external data related to potential risks and riskmanagement.Methods used for risk information collection and identi?cation include document review, question-naires, interviews, and historical event analysis.Establish a risk assessment team to de?ne the Company’s risk management philosophy and risktolerance.Identify risks, their sources, and categories, with detailed documentation of their severity. Risksources include environmental factors, processes, strategic decision-making information, internaland external Company elements.Establish a risk assessment index system and standards.Analyze the risks and determine the potential losses they may incur.Based on the risk analysis results and the underlying causes, select appropriate risk responsestrategies such as risk avoidance, acceptance, reduction, or transfer.Establish a dynamic mechanism for monitoring, reviewing, and preventing risks, ensuring ongoingcontrol while communicating and sharing risk information with relevant departments.

RiskAssessmentRiskIdenti?cation

Risk Response

The Company places great emphasis on enhancing risk management awareness and building a strong risk-aware culture by strength-ening employees’ understanding of risk management. To meet employee needs, the Company regularly organizes training sessionsand awareness programs on contract management, stamp management, and system operations. These initiatives help employees stayinformed about internal risk policies, minimizing the likelihood of risk violations in daily operations.

4.2.3 RISK AWARENESS AND CULTURE

Jihong Group places great emphasis on integrity and compliance management, strictly adhering to the Company Law of thePeople’s Republic of China, the Anti-Monopoly Law of the People’s Republic of China, the Criminal Law of the People’s Republicof China, the Anti-Unfair Competition Law of the People’s Republic of China, and the Anti-Money Laundering Law of the People’sRepublic of China. The Company has fully implemented internal management policies related to business ethics and anti-corruption,including the Conflict of Interest Management System, the Anti-Business Bribery, Anti-Fraud, and Reporting Management System,and the Gift Management Measures. Jihong Group ?rmly opposes all forms of commercial bribery, corruption, fraud, and unfaircompetition, maintaining a zero-tolerance policy toward any illegal or non-compliant behavior.

4.3.1 BUSINESS ETHICS GOVERNANCE

Jihong Group consistently upholds its core values of “responsibility, innovation, and achievement,” adhering to the principle that“credibility and integrity lay the foundation for growth.” The Company continuously strengthens its ethics governance, promotes ananti-corruption culture, and maintains a transparent complaint and reporting system. With a zero-tolerance stance on corruption andunfair competition, Jihong Group fosters a culture of integrity, ensuring long-term, sustainable development.

4.3 BUSINESS ETHICS

As the highest governingbody for business ethicsgovernance, it is responsiblefor establishing andimproving the internalcontrol system foranti-bribery and anti-fraudand overseeingmanagement’s compliancewith integrity regulations.

As the leading body forthe Company’s integrityinitiatives, it isresponsible for guidingand supervising theCompany’s anti-briberyand anti-fraud e?orts.

Responsible for establishing,improving, and e?ectivelyimplementing internalcontrols related toanti-bribery and anti-fraud,with the aim of mitigatingthe risk of bribery andfraudulent activities. In theevent of a bribery incident, itis responsible for formulatingand implementingappropriate and e?ectiveremedial measures, subjectto oversight by the Board ofDirectors and its AuditCommittee.

The Audit Departmentserves as the Company’spermanent body foranti-bribery andanti-fraud e?orts,responsible forconducting supervisionand investigations relatedto these matters. Itreports investigationresults directly to theAudit Committee.

The Company and itssubsidiaries areresponsible for theimplementation ofinternal controls relatedto anti-bribery andanti-fraud and forcooperating in theinvestigation andevidence collection ofbribery and fraudincidents.

Board ofDirectors

AuditCommittee

Management

Team

AuditDepartment

Company andSubsidiaries

4.2 RISK MANAGEMENT

To enhance the risk controls against corruption, unfair competition, and other violations, Jihong Group has reinforced its integritymanagement measures. When appointing or promoting candidates for key positions, the Company conducts thorough integrityevaluations and enforces a strict anti-bribery commitment system. Candidates are required to sign the Honest Operation andCompliance Management Commitment Letter, with compliance performance integrated into their evaluations. Based on businessethics risk assessments, the Company also conducts regular audits, combining daily monitoring with targeted reviews. Any identi?edissues are promptly addressed to mitigate risks e?ectively. During the Reporting Period, no major corruption or bribery incidents wererecorded.

By the end of the reporting period, Jihong Group held two anti-corruption training sessions for employees, covering business ethicsstandards, reporting mechanisms, and reward and punishment regulations, with 356 participants in total. For the management team,anti-corruption training materials were distributed, and all managers were required to complete self-learning. The Board of Directorsparticipated in4 anti-corruption training sessions, attended by all 11 board members. The total training duration was 4 hours,achieving a100% participation rate.

Jihong Group’s Reporting Channels

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4.3.3 REPORTING MANAGEMENT

Case: Jihong Group integrity training

In 2024, the Audit Department distributed integrityand compliance training materials on giftacceptance and o?ering compliance to departmentheads and subsidiary managers. Each managementteam was required to complete self-learning withina designated timeframe and conduct internaltraining sessions within their respective units. Thetraining covered fundamentals of integritycompliance and guidelines for gift exchanges,reinforcing ethical business conduct amongemployees, strengthening business ethicsawareness among the management team, andensuring that improper bene?ts are handledappropriately in the workplace. This initiativefurther safeguarded the Company’s commitment tohonest and compliant operations.

Jihong Group’s Integrity Awareness Training Session

JIHONG GROUP’S BUSINESSETHICS AUDIT MEASURES

Routine and business-speci?c audits are conducted to ensure compliance. These audits typically include supplierintegrity management, focusing on mutual commitments to ethical standards and identifyingany violations during the cooperation period.Business ethics guidelines from the Code of Conduct for Management Personnel are reinforced duringonboarding and regularly reviewed in managerial meetings.

Suppliers are required to sign the Sunshine Integrity Action Commitment Letter, which outlines businessethics requirements and provides reporting channels for anti-corruption and unethical behaviorcomplaints.

SuppliersSubsidiariesInternal Employees

4.3.2 BUSINESS ETHICS TRAINING

Jihong Group actively promotes anti-corruption and integrity training to strengthencorporate ethics and reinforce a culture of transparency. Regular training sessions are heldfor senior management and Board members, covering the Code of Conduct for Manage-ment Personnel and Gift Management Measures to prevent corruption and uphold ethicalgovernance. For all employees, the Company expands integrity awareness througheducational posters and ongoing corporate ethics initiatives. In 2024, Jihong Grouplaunched a top-down integrity training program, providing standardized trainingmaterials. Department heads were required to complete self-learning within a settimeframe and conduct internal training sessions.

Jihong Group adheres to the requirementsof national disciplinary inspection and supervisoryauthorities, continuously improving its Anti-BusinessBribery, Anti-Fraud, and Reporting Management Systemto enhance reporting procedures and channels. TheCompany ensures that all complaints and reports areaddressed promptly and e?ectively. Multiple reportingchannels are available, allowing employees and externalbusiness partners to report fraud or suspectedmisconduct through telephone, email, mail, orface-to-face meetings. Upon receiving a report, the AuditOperations Center conducts a thorough investigation,strictly following the reporting procedure to ensurefairness and objectivity.To safeguard whistleblowers, the Company’s internalpolicies explicitly prohibit discrimination, retaliation, orunfair treatment, including dismissal, persecution, ordisciplinary action. Without consent, the Company doesnot disclose the whistleblower’s identity or details of thereport, ensuring protection throughout the investigation.At the same time, the Company strictly forbids false ormalicious reports. If such cases arise, appropriate actionsare taken against the whistleblower to maintain thecredibility of reporting channels. In 2024, the Companydid not experience any lawsuits or administrativepenalties related to unfair competition, corruption,bribery, or money laundering.

Reporting Hotline:

18150353249

Reporting Email:

shenji@jihong.cn

Reporting Address：

Audit Department, Jihong Group, No.9 PutouRd., Dongfu Industry Park Ⅱ, Haicang District,Xiamen City, Fujian Province

Compliance Requirements for Mid-Autumn Festival Gift Acceptance and O?ering Compliance Poster

5 APPENDICES

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5.1 HKEX - ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTING GUIDE

INDEX

KPI

Description of whether there is any issue in sourcing water that is?t for purpose, water e?ciency target(s) set and steps taken toachieve them.

2.1.2 Resource ManagementA2.4

Description of the signi?cant impacts of activities on theenvironment and natural resources and the actions taken tomanage them.

2.1.1 Environmental

Management System

2.1.2 Resource Management

2.1.3 Emission Management

2.1.4 Green Products

General Disclosure

Policies on minimising the issuer’s signi?cant impacts on theenvironment and natural resources.

2.1.1 Environmental

Management SystemA3.1

Total packaging material used for ?nished products (in tonnes)and, if applicable, with reference to per unit produced.

2.1.4 Green Products

A2.5

Aspect A2: Use of Resources

KPI

KPI

The types of emissions and respective emissions data. 2.1.3 Emission ManagementA1.1

Description of emission target(s) set and steps taken to achieve them.2.1.3 Emission ManagementA1.5

Direct (Scope 1) and energy indirect (Scope 2) greenhouse gasemissions (in tonnes) and, where appropriate, intensity (e.g. perunit of production volume, per facility).

2.1.2 Resource Management

2.1.3 Emission Management

A1.2

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

2.1.3 Emission Management

A1.3

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

2.1.2 Resource Management

A2.1

Water consumption in total and intensity (e.g. per unit of productionvolume, per facility).

2.1.2 Resource Management

A2.2

Description of energy use e?ciency target(s) set and steps taken toachieve them.

2.1.2 Resource ManagementA2.3

Total non-hazardous waste produced (in tonnes) and, whereappropriate, intensity (e.g. per unit of production volume, per facility).

2.1.3 Emission Management

A1.4

Description of how hazardous and non-hazardous wastes arehandled, and a description of reduction target(s) set and steps takento achieve them.

2.1.3 Emission Management

A1.6

Environmental

General Disclosure & KPIIndicator DescriptionChapter References

Information on:(a) the policies; and(b) compliance with relevantlaws and regulations that have a signi?cant impact on the issuerrelating to air emissions, discharges into water and land, andgeneration of hazardous and non-hazardous waste.

2.1.1 Environmental

Management System

2.1.2 Resource Management

2.1.3 Emission Management

General Disclosure

Aspect A1: Emissions

General Disclosure

Policies on the e?cient use of resources, including energy, waterand other raw materials.

2.1.2 Resource Management

Aspect A3: The Environment and Natural Resources

Climate-related Disclosures

GovernanceClimate-related risks and opportunitiesBusiness model and value chainStrategy and decision-makingFinancial position, ?nancial performance and cash ?owsClimate resilienceFinancial e?ects of climate-related risks and opportunitiesRisk ManagementGreenhouse gas emissionsClimate-related transition risksClimate-related physical risksClimate-related opportunitiesCapital deploymentInternal carbon pricesNot applicableIndustry-based metricsClimate-related targetsApplicability of cross-industry metrics and industry-based metrics

2.3.1 Governance

2.3.3 Risk Management

2.3.3 Risk Management

2.3.2 Strategy

Not applicable

Not applicable

Not applicable

2.3.3 Risk Management

2.3.4 Indicators and Targets

2.3.3 Risk Management

2.3.3 Risk Management

Not applicable

Not applicable

Not applicable

Not applicable

Not applicable

2.3.4 Indicators and Targets

2.3.4 Indicators and Targets

CLIMATE-RELATED DISCLOSURESGovernanceStrategyRiskManagement

Metrics andTargets

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KPI

Total workforce by gender, employment type (for example, full- orpart-time), age group and geographical region.

3.4.1 Diversity,Equality,

and InclusionB1.1

Employee turnover rate by gender, age group and geographicalregion.

3.4.1 Diversity,Equality,

and InclusionB1.2

Social

Information on:(a) the policies; and(b) compliance with relevantlaws and regulations that have a signi?cant impact on the issuerrelating to compensation and dismissal, recruitment andpromotion, working hours, rest periods, equal opportunity,diversity, anti-discrimination, and other bene?ts and welfare.

3.4.1 Diversity,Equality,

and Inclusion

3.4.2 Employee Rights Protection

3.4.3 Employee Training

and DevelopmentGeneral Disclosure

Aspect B1: Employment

Information on:(a) the policies; and(b) compliance with relevantlaws and regulations that have a signi?cant impact on the issuerrelating to providing a safe working environment and protectingemployees from occupational hazards.KPI

KPI

3.3.1 Work Safety

3.3.2 Occupational

Health and SafetyNumber and rate of work-related fatalities occurred in each of thepast three years including the reporting year.

3.3.1 Work Safety

General Disclosure

General Disclosure

B2.1

Policies on managing environmental and social risks of thesupply chain.

3.2.1 Supplier Admission

and Evaluation

3.2.2 Supply Chain ESG

Management

3.2.3 Supplier Communication

General Disclosure

Information on:(a) the policies; and(b) compliance with relevantlaws and regulations that have a signi?cant impact on the issuerrelating to bribery, extortion, fraud and money laundering.

4.3.1Business Ethics Governance

Lost days due to work injury.3.3.1 Work SafetyB2.2

Policies on improving employees’ knowledge and skills fordischarging duties at work. Description of training activities.KPI

3.4.3 Employee Training

and DevelopmentThe percentage of employees trained by gender and employeecategory (e.g. senior management, middle management).

3.4.3 Employee Training

and DevelopmentGeneral Disclosure

B3.1

The average training hours completed per employee by genderand employee category.

3.4.3 Employee Training

and DevelopmentB3.2

Information on:(a) the policies; and(b) compliance with relevantlaws and regulations that have a signi?cant impact on the issuerrelating to preventing child and forced labour.KPI

3.4.1 Diversity,Equality,

and InclusionDescription of measures to review employment practices to avoidchild and forced labour.

3.4.1 Diversity,Equality,

and InclusionGeneral Disclosure

B4.1

Description of steps taken to eliminate such practices whendiscovered.

3.4.1 Diversity,Equality,

and InclusionB4.2

Description of occupational health and safety measures adopted,and how they are implemented and monitored.

3.3.1 Work Safety

3.3.2 Occupational

Health and SafetyB2.3

Number of suppliers by geographical region.

3.2.1 Supplier Admission

and EvaluationB5.1

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

3.2.1 Supplier Admission

and Evaluation

3.2.2 Supply Chain ESG

Management

3.2.1 Supplier Admission

and Evaluation

3.2.2 Supply Chain ESG

Management

3.2.1 Supplier Admission

and Evaluation

3.2.2 Supply Chain ESG

Management

B5.2

Description of practices used to identify environmental and socialrisks along the supply chain, and how they are implemented andmonitored.Description of practices used to promote environmentallypreferable products and services when selecting suppliers, andhow they are implemented and monitored.B5.3B5.4

Information on:(a) the policies; and(b) compliance with relevantlaws and regulations that have a signi?cant impact on the issuerrelating to health and safety, advertising, labelling and privacymatters relating to products and services provided and methodsof redress.

KPI

3.1.1 Quality Management

3.1.2 Customer Service

3.1.3 Information Security

3.1.4 Innovation and R&D

Percentage of total products sold or shipped subject to recalls forsafety and health reasons.

3.1.1 Quality Management

General Disclosure

B6.1

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

3.1.3 Information SecurityB6.5

Number of products and service related complaints received andhow they are dealt with.

3.1.2 Customer ServiceB6.2

Description of practices relating to observing and protectingintellectual property rights.

3.1.4 Innovation and R&DB6.3

KPI

Number of concluded legal cases regarding corrupt practicesbrought against the issuer or its employees during the reportingperiod and the outcomes of the cases.

4.3.3 Reporting ManagementB7.1

Description of preventive measures and whistle-blowingprocedures, and how they are implemented and monitored.

4.3.3 Reporting ManagementB7.2

Description of anti-corruption training provided to directors andsta?.

4.3.2 Business Ethics TrainingB7.3

General Disclosure

Policies on community engagement to understand the needs ofthe communities where the issuer operates and to ensure itsactivities take into consideration the communities’ interests.

3.5 Social Welfare

KPI

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

3.5 Social WelfareB8.1

Resources contributed (e.g. money or time) to the focus area.3.5 Social WelfareB8.2

Description of quality assurance process and recall procedures.

3.1.1 Quality ManagementB6.4

Aspect B2: Health and Safety

Aspect B5: Supply Chain Management

Aspect B7: Anti-corruptionAspect B3: Development and Training

Aspect B4: Labour Standards

Aspect B6: Product Responsibility

Aspect B8: Community Investment

General Disclosure & KPIIndicator DescriptionChapter References

5.2 SHENZHEN STOCK EXCHANGE ESG INDEX

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IndexTopicsCorresponding ClausesCorresponding Chapter

SocietyEnvironment

Addressing Climate ChangePollute EmissionsWaste ManagementEcosystem and BiodiversityProtectionEnvironmental ComplianceManagementEnergy UtilizationWater Resource ManagementCircular EconomyRural RevitalizationSocial ContributionInnovation-DrivenDevelopmentTechnology EthicsSupply Chain SecurityFair Treatment of SMEsProduct and Service Safety &QualityData Security and CustomerPrivacy ProtectionEmployees

Article 21-28Article 30Article 31Article 32Article 33Article 35Article 36Article 37Article 39Article 40Article 42Article 43Article 45Article 46Article 47Article 48Article 50

2.3.1 Governance

2.3.2 Strategy

2.3.3 Risk Management

2.3.4 Indicators and Targets

2.1.3 Emission Management

2.1.3 Emission Management

2.4 Biodiversity

2.1.1 Environmental Management

System

2.1.2 Resource Management

2.1.2 Resource Management

2.1.2 Resource Management

3.5 Social Welfare

3.5 Social Welfare

3.1.4 Innovation and R&D

Not applicable

3.2.1 Supplier Admission and

Evaluation

3.2.2 Supply Chain ESG Management

3.2.3 Supplier Communication

Not applicable

3.1.1 Quality Management

3.1.2 Customer Service

3.1.3 Information Security

3.4.1 Diversity, Equality, and Inclusion

3.4.2 Employee Rights Protection

3.4.3 Employee Training and

Development

Sustainability Governance

Due DiligenceStakeholder CommunicationAnti-Bribery and Anti-Corrup-tionAnti-Unfair Competition

Article 52Article 53Article 55Article 56

1.6.2 Stakeholder

Communication

1.6.2 Stakeholder

Communication

4.3.1 Business Ethics

Governance

4.3.2 Business Ethics Training

4.3.3 Reporting Management

4.3.1 Business Ethics

Governance

4.3.3 Reporting Management

Dimen-sions

IndexTopicsCorresponding ClausesCorresponding ChapterDimen-sions

5.3 FEEDBACK FORM

Dear Readers,Greetings! Thank you for taking the time to read the 2024 Xiamen Jihong Technology Co., Ltd. Environmental, Social and Governance(ESG) Report. We highly value your feedback and look forward to hearing your thoughts on our ESG management, practices, andreporting. Your opinions and suggestions serve as a crucial foundation for us to continuously improve our ESG management andimplementation. We look forward to your response!

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

□ Shareholders and Investors □ Employees □ Suppliers □ Customers □ Government and Regulatory Authorities □ Community

□Partners □ Industry Associations/NGOs □ Other (Please specify):_____________

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

□ Good □ Fairly Good □ Average □ Poor

5. How well do you think this report re?ects the Company’s ful?llment of its environmental responsibilities?

□ Good □ Fairly Good □ Average □ Poor

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

□ Good □ Fairly Good □ Average □ Poor

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

2. How would you rate this report overall?

□ Good □ Fairly Good □ Average □ Poor

4. How well do you think this report re?ects the Company’s ful?llment of its economic responsibilities?

□ Good □ Fairly Good □ Average □ Poor

6. How well do you think this report re?ects the Company’s ful?llment of its social responsibilities?

□ Good □ Fairly Good □ Average □ Poor

9.Do you have any opinions or suggestions regarding the Company’s environmental, social, and governance e?orts or the preparation

of this report?

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