大禹节水集团股份有限公司环境、社会及公司治理报告

ENVIRONMENTAL

SOCIAL ANDGOVERNANCE

REPORT

DAYU IRRIGATION GROUP

2024

SUSTAINABLITY

REPROT

About This Report

CONTENTS

Report Reliability Assurance

Scope and Boundaries of the ReportReporting Period

Data Sources

Reporting Standards

Terminology

Report Availability

This report has been prepared by DAYU Irrigation Group Co., Ltd. and approved by the Board of Directors. The Board ofDirectors and all its members guarantee that this report contains no false records, misleading statements, or major omissionsand assume individual and joint responsibility for the authenticity, accuracy, and completeness of its content.

This report marks the fourth consecutive year that DAYU Irrigation Group Co., Ltd. has published its sustainability relatedReport. Adhering to the principles of standardization, transparency, objectivity, and comprehensiveness, the report providesstakeholders with insights into the company's business operations, environmental and social impact, public welfare initiatives,and overall performance, addressing key concerns of various stakeholders.

The report primarily covers DAYU Irrigation Group Co., Ltd., including its subsidiaries and branch oces.This is an annual report covering the period from January 1, 2024, to December 31, 2024. To ensure continuity of information,some sections may include data from previous years or references to 2025.Unless otherwise stated, all nancial data in this report are sourced from the annual nancial statements of DAYU Irrigation GroupCo., Ltd. and its subsidiaries. Other data are derived from internal company statistics and manually compiled records. All monetaryvalues, unless otherwise specied, are presented in Renminbi (RMB).This report follows theGuidelines No. 17 on Self-Regulation for Listed Companies—Sustainability Reporting (Trial)issued bythe Shenzhen Stock Exchange. Additionally, it is prepared in accordance with theGlobal Reporting Initiative (GRI) SustainabilityReporting Standards, and with reference to theUnited Nations Sustainable Development Goals (UN SDGs). The report is tailored toreect the company's current stage of development and sustainable development practices.For ease of reference, "DAYU Irrigation Group Co., Ltd." is referred to as "DAYU Irrigation Group," "the Company," or "we"throughout this report. All disclosed data and information originate from ocial company documents and internal statistics,including but not limited to:

DAYU Agro-Water Group (Gansu DAYU Irrigation Group Water Conservancy and Hydropower Engineering Co., Ltd.) DAYU Design Consulting Group (DAYU Design Consulting Group Co., Ltd.) DAYU Huitu Group (Beijing Huitu Technology (Group) Co., Ltd.) DAYU Equipment Development Group (DAYU Irrigation (Tianjin) Co., Ltd.)This report is available in both print and digital formats. The digital version can be accessed and downloaded from thefollowing websites:

DAYU Irrigation Group Ocial Website: www.dyjs.com Shenzhen Stock Exchange: www.szse.cn Cninfo (Giant Tide Information Network): www.cninfo.com.cn(To promote environmental sustainability, we encourage readers to opt for the digital version. Thank you for your support!)

About This ReportChairman's AddressAbout DAYU Irrigation GroupSustainability Management andGovernanceAnnual Performance OverviewFeature - DAYU's Joint Eorts Path

Future OutlookKey Performance MetricsReport Index GuidanceReader Feedback

Water Nourishing Ecology, GreenGrowth for All

Leading in Smart Water, SharingResponsibility Together

Clear Waters and Steady ProgressTogether

Addressing Climate ChangeImplementing Green ProductionPracticing Low-Carbon OperationsProtecting the Ecological Environment

Innovation Drives DevelopmentSmart Water for Prosperous VillagesTalent Creates the FuturePublic Welfare to Promote Rural Revitalization

Standardizing Corporate GovernanceStrengthening ComplianceOptimizing Supply Chain CollaborationParty Building Drives Development

utilization, and water management," we contribute theunique strength of a private enterprise to ensuring nationalwater security.As 2024 marks a pivotal stage in the implementation of the

14th Five-Year Plan, it is also a key milestone for China'seconomic and social development to reach new heights.For the water conservation industry in China, this year isequally lled with opportunities and challenges, engravedwith determination and breakthroughs. Food security, asthe cornerstone of national development, has becomeincreasingly prominent under the continued focus of the

No. 1 Central Document. Water conservancy is the lifelineof agriculture. Under the strong impetus of the nationalpolicies, water conservancy authorities are earnestlyimplementing President Xi Jinping’s governance philosophyof "prioritizing water conservation, balancing spatialdistribution, systematic management, and coordinatedefforts." As the sector advances towards high-qualitydevelopment, the organic integration of policy guidance andmarket vitality is injecting fresh momentum into the industry.The rollout of the trillion-yuan national bond further servesas a powerful catalyst, adding bold strokes to the blueprintof water conservancy construction and unlocking infinitepotential for the sector’s continued growth.Pioneering Excellence in 2024Looking back at 2024, we have deeply aligned ourselveswith national strategic initiatives, strengthened ourleadership in technological innovation, and driven market-oriented reforms. We have continuously made significantprogress in business models, production technologies, andindustry leadership mechanisms, achieving remarkablemilestones in several key projects:

As a leader in smart manufacturing for water-savingequipment, DAYU Irrigation Group has establishedsix production bases across China, forming a robustmanufacturing network.Our drip irrigation equipment technology was recognizedas aNational Manufacturing Single Champion, breakingforeign technological monopolies and playing a vitalrole in enhancing water conservation and efficiencyacross tens of millions of acres of farmland in China. Ourproducts have also been successfully exported to morethan 60 countries and regions, including Australia, theAmericas, Southeast Asia, and West Asia, making us oneof the largest global suppliers of drip irrigation productswith internationally leading technology.Our water-saving equipment manufacturing base inWuqing District, Tianjin—one of the world’s largest water-saving equipment manufacturing plants—leveragesadvanced production processes and large-scalemanufacturing capabilities to deliver high-quality waterconservation products to global customers.We closely integrate the "Three Rural Issues" (agriculture,rural areas, and farmers) with sustainable development,serving China’s vast rural landscape and enormousagricultural market. From the aspects of industry leadership,embracing digital intelligence, global expansion and socialresponsibility, we are dedicated to making long-termcontributions to national rural revitalization.

Wang HaoyuChairman, DAYU Irrigation Group Co., Ltd.

Industry Leadership

DAYU Irrigation Group is at the forefront of industrytransformation, continuously innovating business modelsand expanding our operational footprint. We have developedpioneering models in agricultural water conservation, ruralwastewater treatment, and safe drinking water for ruralresidents, with landmark projects such as the "YuanmouModel," "Wuqing Model," and "Pengyang Model" leadingthe way. These initiatives have set a precedent for socialcapital participation in agricultural and rural water resourceutilization reforms, showcasing our capabilities andachievements in water conservation and resource protection.Additionally, through digital twin technology, we havepioneered the intelligent management of the Shule Riverirrigation district, establishing the "Shule River Model"for smart water diversion. This initiative has been widelyrecognized, with CCTV featuring a special report that praisedit as "a new benchmark for intelligent water managementin China." By integrating technological innovation withwater conservation eorts, we continue to explore scalableand replicable water-saving models that contribute to thesustainable use and protection of water resources.DAYU Irrigation Group has also played a key role in fosteringindustry dialogue, successfully hosting the 4th China WaterConservation Forum in Jinan, Shandong. The forum, themed"Water Conservation and High-Quality Development of theYellow River Basin," featured nearly 50 keynote speechesand attracted over 1,000 distinguished guests fromcentral ministries, provincial and municipal governments,enterprises, and institutions. Together, participants exploredstrategic visions for ecological civilization, discussed waterconservation governance priorities, and jointly planned theecological protection and high-quality development of theYellow River Basin.

Embracing Digital IntelligenceAt DAYU Irrigation Group, we are deeply committed totechnological research and development, driving innovationin water conservation through digital intelligence. Werecognize the transformative power of technology in theindustry and remain steadfast in leveraging digitalization asour foundation and innovation as our core driving force.Harnessing next-generation information technologies suchas articial intelligence, digital twins, SaaS cloud services,and big data, we have successfully implemented landmarkprojects, including Digital Twin Shule River, Digital TwinOuyanghai, Xi’an Flood and Drought Disaster Prevention,and the Heilongjiang Mountain Flood "Four Forecasts"Initiative. These projects are accelerating the digital andintelligent transformation of the sector.We were also the first in the industry to develop a waterconservancy artificial intelligence model, applying it towater resource management, irrigation district waterdistribution, and urban-rural water supply. Following thelaunch of DeepSeek AI, we localized and integrated it intoour intelligent models, optimizing the smart managementand efficient allocation of water resources while activelyexploring new market applications for AI-driven solutions.Expanding Our Global Presence

DAYU Irrigation Group is broadening its international reach

Chairman's Address

and deepening domestic and global collaborations. In 2024,designated as our Year of Full-Scale Global Expansion,we achieved key breakthroughs across multiple regionsIn South Africa and Uzbekistan, we successfully launchedwater-saving agricultural projects and smart irrigationsystems, demonstrating the global applicability of China’swater conservation solutions.The China-Kazakhstan Joint Dryland High-Water-EciencyAgricultural Laboratory was included in the bilateralagreement signed by both national leaders, enhancingour international reputation and inuence. This initiativealso established a critical platform for China’s agriculturalcooperation with Belt and Road partner countries,bringing Chinese water conservation technology to theglobal stage.We participated in the 10th World Water Forum and werethe only company to speak at the 4th High-Level Panel onGlobal Water Security, actively advocating for the signingof the International Water Conservation Declaration andcontributing China’s wisdom and solutions to global waterconservation eorts.Over the past year, we have hosted delegations from morethan 20 countries and regions, including Russia, Uzbekistan,Kazakhstan, Pakistan, Saudi Arabia, the UAE, and Laos.Representatives from government agencies, internationalorganizations, agricultural enterprises, and researchinstitutions engaged in in-depth discussions with us. Ourteams also worked on the ground, ensuring the successfuldelivery of the Pakistan project, visiting multiple countries,supporting 56 international clients with design solutions,and advancing the implementation of ve overseas projects.Commitment to Social ResponsibilityDAYU Irrigation Group takes great pride in its corporateresponsibility, fostering a culture of care and commitment. Wedeeply appreciate the societal and human capital that driveour growth and remain dedicated to giving back throughemployee well-being initiatives and social contributions.We actively listen to employees' voices, ensuring asupportive and inclusive workplace.We promote women’s empowerment and cultural heritagepreservation.We support education in underprivileged areas,establishing the "DAYU Scholarship" and "DAYU StudentAssistance Fund" to uplift children’s dreams.We swiftly respond to disaster relief efforts. Following theJishishan earthquake in Gansu, we mobilized resources inrecord time to deliver urgent supplies and provide a safetynet for aected communities.Looking Ahead to 2025As we enter 2025—the final year of the 14th Five-YearPlan,DAYU Irrigation Group remains committed to its people-first water management philosophy. With technologicalinnovation as our spearhead, social responsibility as ourshield and policy steering as our flag, we will continue tosafeguard water resources, support livelihoods, and advancethe modernization of China’s water conservancy sector. Welook forward to joining hands with our partners to write anew and glorious chapter in the future of water conservation.

Water is the source of life, and "water security" is one ofthe fundamental guarantees of national security. Since itsinception, DAYU Irrigation Group has upheld the corporatespirit of "following the spirit of DAYU’s water management toadvance the cause of water conservation" and has remainedcommitted to its mission of "making agriculture smarter,making rural areas better, and making farmers happier."Amidst the sweeping tide of agricultural modernizationand water conservancy reform, we have courageouslytaken the lead,to actively engage in the grand endeavorof water conservation. Through continuous explorationand innovation in the fields of "water conservation, water

The predecessor of the company was established in 1994, DAYU Irrigation Group Co., Ltd. successfully became one of thefirst companies listed on the ChiNext board in October 2009 (Stock Code: 300021.SZ). The company has always adheredto its corporate mission of "making agriculture smarter, making rural areas better, and making farmers happier." For overThree decades, it has remained dedicated to solving and serving issues related to agriculture, rural development, and waterresources. Actively responding to national strategies for rural revitalization and food security, the company has also expandedits global vision and business reach, delivering products and services to more than 60 countries and regions worldwide.DAYU Irrigation Group has built a comprehensive digital water conservancy ecosystem that fully empowers the agricultural andwater conservancy sectors. The company has established a nationwide presence, oering an integrated service package thatincludes R&D and intelligent manufacturing, planning and design, investment and nancing, construction and delivery, digitalintelligence, as well as operation and maintenance.Positioning itself as a provider of comprehensive digital water conservancy solutions, the company has proactively built its owntechnology R&D team, fully embracing digital twin technology ahead of time. It has extensively applied modern informationtechnologies such as the Internet of Things (IoT), big data, blockchain, articial intelligence (AI), and smart meteorology inthe elds of agriculture and water conservancy. In recent years, the company has evolved from manufacturing precise dripirrigation control products to developing various IoT intelligent devices and technological solutions. Its application scenarioshave expanded beyond farmland to cover modernized irrigation districts, water resource management, urban smart waterservices, river and lake governance, agricultural irrigation, reservoir early warning systems, and mountain ood forecasting.The company now comprehensively provides digital water conservancy solutions spanning water conservancy, agriculturalservices, and ecological environment sectors.As an industry pioneer, DAYU Irrigation Group has been actively engaged in various mechanism and model innovationpractices within China’s farmland water conservancy sector. It has explored and implemented a series of innovative businessmodels tailored to local conditions, eectively integrating diverse resources, capital, and expertise. By linking governmentbodies, social capital, and farmers as key stakeholders, it has developed balanced models that distribute risks, benets, andresponsibilities eectively. Notable innovative business models include the "Yuanmou Model," "Wuqing Model," and "PengyangModel," which have become exemplary cases in water-saving business development.

About DAYU Irrigation Group

Corporate Vision

Corporate Spirit

Strategic Approach

Corporate Mission

To build a world-renowned,century-old enterprise in water-saving and irrigation.

Carry out the Water ConservationUndertaking of DAYU with the Spirit of

DAYU's Water Control.

Three Agricultures, Three Waters,Three Networks; Dual Forces, Joint

Responsibilities.

Make Agriculture SmarterMake Countryside BetterMake Farmers Happier

Corporate Values

? Ordinary people do Extraordinary things? 1.01

=37.78? Constantly innovate and embrace change? Keep the Original intention and Keep inawe? Be reliable and trustworthy.? Hard work and perseverance, creatingand sharing together? Strike where it matters, and honor onlythose who deliver results

DAYU Huitu GroupDigital Twin Model Algorithm R&D andApplicationInformatization Software Developmentand Hardware R&DIntegrated Delivery of Water ResourcesInformatizationInformatization Facility Operation,SaaS Services and Emergency ServicesIntegrated Digital Water ResourcesSolutions

DAYU DesignConsulting GroupWater Resources Planning and

ConsultingWater Resources Industry Design

Design-led EPCSystematic Solutions for Water

Resources Projects

DAYU EquipmentDevelopment Group

Development of cutting-edge technologyand intelligent manufacturing of water-

saving intelligent equipmentDomestic and international marketing

and salesImplementation of scientic research

projectsPrecision irrigation system solutionsDAYU Agro-WaterGroup

Water conservancy project constructionIrrigation district modernizationHigh-standard farmland constructionWater environment managementAgricultural water conservancy infrastructureoperationComprehensive solutions for intelligent agriculture

SmartAgricultureInfrastructureOperationDigital WaterInfrastructureOperations

Agriculture Water Infrastructure AssetsOperation and Maintenance

S

m

art

Manufacturing

Planning

and

Des

i

gn

O

p

e

r

ation

and

Maintenance

Investment

and

Financing

Intelligent

Construc

tion

and

DeliveryWater

Intelligence

Agriculture

FoodSecurityWaterSecurity

DigitalSecurity

For Three DecadesIntelligent agriculture construction and

operation experiencePlaying a strong voice for food security

Full Stack

AI Data Platform Development

Technology

Bringing Agricultural Water andInformation Technology into Deep

Dialogue

Full Chain

Digital Water Resources Investment,Construction, Management and Service

Capability

Building a Water Security Moat

1999

2019

2021

2023

2003

2013

2018

2020

2022

2024

2009

2017

Company founded

Initiated the China WaterConservation Forum

Upgraded and releasedthe company strategy

Operations are the primarystrategy

Developed engineeringconstruction capabilities

Developed planning anddesign capabilities

Expanded into the ecologicaland environmental protectioneld

Developed digital waterconservancy capabilities

Established Beijing R&Dcenter

Fully expandedoverseas, with successfulimplementation

First batch of companieslisted on the ChiNext Market

Passing the baton

Developing Progress

Ministry of Industry and Information Technology of

the People's Republic of China

Science and Technology Department of Xinjiang

Uygur Autonomous RegionMinistry of Housing and Urban-RuralDevelopment of the People's Republic of China

People's Government of Ningxia Hui Autonomous Region

Science and Technology PromotionCenter, Ministry of Water Resources of

the People's Republic of China

People's Government of Yunnan

ProvinceScience and Technology PromotionCenter, Ministry of Water Resources ofthe People's Republic of China

People's Government of Shanxi

ProvinceAll-China Federation of Trade

Unions

People's Government of Gansu

Province

Manufacturing Industry Single Champion

Enterprise

High-tech EnterpriseEngineering Design Qualication for Irrigation,Drainage, and River Course Regulation in theWater Conservancy Industry – Class A

First Prize in Ningxia Hui Autonomous Region

Science and Technology Progress Award

Advanced Practical Technology inWater Conservancy – Ecient Water-saving Smart Operation Management

System for Irrigation Areas

First Prize in Yunnan ProvincialScience and Technology AwardWater Conservancy Advanced PracticalTechnology Promotion Certicate – Ecient

Water-saving Underground IrrigationSystem for Western Pastoral Areas

Second Prize in Shanxi Provincial Scienceand Technology Progress AwardNational Worker Pioneer Award

Second Prize in Gansu Provincial Scienceand Technology Progress Award

Honors and Credits

Shanghai Securities News

2024 Golden Quality Award ESG Award

China Listed Companies Association

Best Practice Case in SustainableDevelopment of Listed Companies 2024

China Listed Companies Association

Best Board of Directors Practice Case in

Listed Companies 2024

China Listed Companies Association

Best Practice Case in Digital Transformation

of Listed Companies 2024

China Listed Companies Association

"2024 Best Board of Directors Practice Case

in Listed Companies"

China Water ConservancyEngineering Association

Enterprise Credit Rating Certicatefor Supply (Raw Materials)

AAA

China Water ConservancyEngineering Association

Water Conservancy Construction Market

Entity Credit Evaluation (InformationTechnology Category) AAA (Beijing HuituTechnology (Group) Co., Ltd.)

China Water ConservancyEngineering Association

Water Conservancy Construction Market

Entity Credit Evaluation (InformationTechnology Category) AAA (Hubei Huitu-Wuhan Shengkeda Technology Co., Ltd.)

China Water ConservancyEngineering Association

Water Conservancy ConstructionMarket Entity Credit Evaluation(Construction Category)

AAA

China Water ConservancyEnterprise Association

Enterprise Credit Rating Certicate(Water-saving and Water Treatment)

AAA

China Water Conservancy and HydropowerSurvey and Design Association

2024 Annual Water Conservancy ConstructionMarket Entity Credit Evaluation (Design Category)

AAA

Since its establishment, DAYU Irrigation has always been committed to rural areas and farmers. With the mission of "makingagriculture smarter, making rural areas better, and making farmers happier," the company focuses on "agricultural water-savingirrigation, safe drinking water for farmers, and rural water environment management." It integrates this relatively traditionalagricultural issue with environmental protection, social responsibility, and corporate governance. The company has deeplyembedded the ESG concept and sustainable development into its core business practices.We actively explore new agriculturalwater-saving models, improve farmland water conservancy facilities, promote rural ecological protection, and enhance the digitaland intelligent infrastructure of water conservancy. Through these eorts, we fulll our commitment to green development andcontribute to society’s sustainable development.As a member of the ESG Professional Committee of the Listed Companies Association, the company understands that improving ESGgovernance signicantly impacts the development of ESG within the company by deepening the understanding of ESG concepts,improving decision-making processes, and enhancing the scientific nature of decisions.In April 2023, the company decided toincorporate ESG strategic management into the Board's Strategic Committee and establish an ESG working group. Subsequently, inOctober 2024, DAYU Irrigation formally established the Board Strategic and ESG Committee. The Chairman of the company directlyserves as the Chairman (Convener) of the Committee, responsible for researching and proposing recommendations to enhance thecompany’s sustainable development capabilities in long-term strategic development, major investment decisions, and areas suchas environmental, social, and governance issues.According to DAYU Irrigation's "Implementation Rules for the Board Strategic and ESG Committee," the committee has set up aStrategic and ESG Working Group. Regular meetings will be held at least once a year, and temporary meetings will be convened asneeded. Through improving the company's strategy and ESG responsibilities and authority, enhancing decision-making processes,maintaining regular communication, improving policies and systems, setting ESG goals, and regularly conducting externalinformation disclosure, the company continuously strengthens its core competitiveness and sustainable development capacity.

Board of Directors

Responsible for the company’s overall strategy and risk management, and holds finaldecision-making authority on related matters.

Responsible for studying and making recommendations on the company’s long-term strategicplanning, ESG goals, and sustainable high-quality development; identifying and monitoringESG-related risks and opportunities that signicantly impact the company’s business; guidingmanagement to take appropriate countermeasures; and reviewing and submitting thecompany’s ESG action plans, reports, and related matters to the Board of Directors.Composed of personnel from relevant functional departments, the working group is responsiblefor the implementation, inspection, and feedback of the company’s ESG-related matters.

Strategic and ESGCommittee

Strategic and ESGWorking Group

A-

AA

SynTao Green Finance

China Reform

A

AAA

WindESG

QuantData

A

A+

Sino-Securities Index

CCXGF

A (As of December 31, 2024)

AA (As of July 31, 2024)

A (As of December 31, 2024) Industry

Ranking: 9/453

A+ (As of December 31, 2024)

A (As of December 31, 2024) Industry

Ranking: 8/54

AAA (As of December 31, 2024)

ESG Rating Performance

Sustainability Governance

Sustainability Management and Governance

DAYU Irrigation Group places great importance on the feedback and expectations ofstakeholders regarding the company’s sustainable development strategies and practices,considering them a key foundation for driving its sustainability efforts. Based on thecharacteristics of our business and current operations, we have thoroughly identied keystakeholder groups and continuously improved a diversied communication mechanism toensure close and eective interaction with all stakeholders.

StakeholderEngagement andDue DiligenceStakeholdersKey ConcernsCommunication Channels

? Corporate announcements and periodic reports? Shareholders' meetings? Investor presentation? Roadshows? Platform-based communication? Company open days? Project site visits? Company website

? Stable performance growth? Sound corporate governance? Strong nancial results? Integrity and compliant operations? Information security and privacyprotection

? Employee satisfaction surveys? Workers' congress? Recruitment and promotion policies? Employee care activities? Employee training programs? Complaints and feedback mailbox? Director of Board reception day

? Protection of employee rights? Occupational health and safety? Competitive compensation andbenets? Career development and training? Diversity, equity, and inclusion

? Customer satisfaction surveys? Service hotlines? Company website? Regular inspections? Customer privacy protection? Operation service performance evaluation

? Safe and reliable construction services? High-quality and comprehensiveservice? Excellent operational performance? Protection of customer rights? Information security and privacy

protection? R&D and innovation

? Supplier management enhancement? Transparent procurement processes? Responsible sourcing? Supplier audits and evaluations? On-site inspections? Routine supplier communications

? Legal compliance in contract fulllment? Fair and transparent procurement? Win-win cooperation? Intellectual property protection? Business ethics and anti-corruption

? Volunteering activities? Environmental complaint hotlines? On-site visits and forums? Regional assistance programs? Charitable donations? Job creation

? Environmental protection? Participation in public welfare? Community development support? Promotion of local employment

? Company website and ocial social media? Media interviews and partnerships? Regular disclosures? Industry exchange events? Regular reports and disclosures? Timely regulatory inspections? Government-enterprise dialogue? Policy recommendations

? Legal and compliant operations? Responsible marketing and publicity? Environmental management? Implementation of national policies

and regulations? Promotion of local economic

development? Product quality and safety? Environmental protection? Industry advancement? Business ethics and anti-corruption? Tax compliance

Shareholders and Investors

Government and Regulatory

Bodies

Employees

Business Partners / Suppliers

Customers

Community Members

Media / NGOs

DAYU Irrigation Group has compiled the quantitative results of both financial significance and impact significance andpresented the priority of each topic in a matrix format.

High ImportanceFinance MaterialityGeneral Importance

High ImportanceImpact Materiality

Environmental TopicsEnvironmental ComplianceManagementAddressing Climate ChangeResource and Energy ManagementWaste ManagementWater Resource ManagementCircular EconomyBiodiversity Protection

Corporate GovernanceRisk ManagementCompliance ManagementBusiness Ethics and Anti-CorruptionInformation Security and PrivacyProtectionStakeholder CommunicationDue Diligence

Product R&D and TechnologicalInnovationIntellectual Property ProtectionHigh-Quality Products and ServicesSupply Chain ManagementEmployee Rights and WelfareEmployee Health and SafetyEmployee Development and TrainingDiversity, Equality, and InclusionPromoting Industry DevelopmentTechnology EthicsRural RevitalizationPublic Welfare and CharitySustainable Agricultural WaterConservancy Infrastructure

Social TopicsGovernance Topics

In 2024, DAYU Irrigation Group conducted a comprehensive analysis of the company's value chain, domestic and internationalsustainable development standards (including but not limited to the relevant requirements of the Shenzhen Stock ExchangeSustainable Development Report, GRI Standards), ESG rating focus areas, and national policies and industry developmenttrends. This analysis helped the company better understand the sustainable development context in which it operates.Sustainability topics identied were screened and selected accordingly. The company identied and selected 27 sustainability-related topics, including 7 environmental topics, 13 social topics, and 7 governance topics.To more effectively respond to stakeholders’ close attention to the company's sustainable development practices, weconducted surveys and quantitative analysis based on both the importance of impact and nancial signicance. The surveywas conducted in accordance with the guidelines provided inthe Self-Disciplinary Regulatory Guidelines No. 17 for ListedCompanies on the Shenzhen Stock Exchange—Sustainable Development Report (Trial)andSelf-Disciplinary RegulatoryGuidelines No. 3 for Listed Companies on the Shenzhen Stock Exchange—Sustainable Development Report Preparationtoassess the importance of the identied ESG topics.The importance of the topics was assessed using a survey method. DAYU Irrigation Group invited stakeholders to evaluatethe importance of each topic based on two dimensions: "severity of impact" (including scale, scope, and irreparability)and "likelihood of impact." We distributed 271 surveys to 10 categories of stakeholders, including Board members,senior management, shareholders, employees, customers, suppliers, regulatory agencies, industry associations,non-profit organizations, media, brokerage firms, and the general public, and consulted both internal and externalsustainable development experts to prioritize the sustainability topics based on their impact significance. Additionally, weconducted a survey with senior management and key stakeholders in finance, investor relations, and risk managementto evaluate the financial significance of the topics from two perspectives: "likelihood of financial impact" and "degree ofnancial impact."

Sustainability Topic Analysis

High Importance

Biodiversity

Water Resource ManagementSustainable Agricultural WaterConservancy InfrastructureProduct R&D and Technological Innovation

Corporate GovernanceInformation Security and Privacy ProtectionEmployee Rights and WelfarePublic Welfare and CharityBusiness Ethics and Anti-CorruptionSupply Chain ManagementAddressing Climate ChangeEnvironmental Compliance ManagementStakeholder CommunicationCircular Economy

Medium Importance

General Importance

Diversity, Equality, and InclusionDue DiligenceRisk ManagementEmployee Health and SafetyResource and Energy ManagementWaste ManagementCompliance ManagementEmployee Training and DevelopmentIntellectual Property Protection

Promoting Industry DevelopmentHigh-Quality Products and ServicesRural Revitalization

Technology Ethics

? Total public donations in 2024:

6.49

million RMB

No Poverty

? Key investment in sustainable agricultural water

conservancy infrastructure construction? Created a new model of “High - standard farmland +EPC+” to enhance food security capacity

Zero Hunger

? Social insurance coverage rate:

100%? Occupational health check coverage rate: over80%

? Number of occupational diseases:

Good Health and Well - being

Gender Equality? Number of female employees:

? Percentage of female employees:

26.1%

? Number of female employees in middle and seniormanagement:

Industry, Innovation, and Infrastructure

? R&D investment:

12.39

million RMB? Number of patents granted:

? Number of national key scientific research projects/topics/sub - topics undertaken or participated in:

? Led the development of national standards:

standard;Participated in the development of national standards:

standard

Clean Water and Sanitation? The “Internet + rural water supply” model of “investment,construction, management, and service” ensures ruralwater safety

Aordable and Clean Energy? Focused on energy transformation and smart infrastructuredevelopment? Developed products based on photovoltaic energyDecent Work and Economic Growth? Number of employment opportunities created:

? Labor contract signing rate:

100%? Number of employees regularly assessed for performanceand career development:

2,730

Quality Education? Employee training coverage rate:

95.5%

, an increaseof

4.8%

compared to last year? Total employee training hours:

82,000hours? Total education donations in 2024:

5.05

million RMB

Climate Action? Number of energy - saving and emission reduction projects:

? Total environmental investment in 2024:

million RMB? Total greenhouse gas emissions:

15,756.63tons of CO2equivalent? Total carbon reduction in employee oces:

2,190.35

tons of CO2 equivalent, achieving three consecutive years ofimprovement in oce carbon reduction

Partnerships for the Goals? Net assets attributable to shareholders of the listed company:

205.15

million RMB? Net profit attributable to shareholders of the listed company:

8.11

million RMB? Total taxes paid:

20.94

million RMB? Operating revenue:

437.88

million RMB? Weighted average return on net assets:

3.93

%

Reduced Inequalities? Percentage of minority ethnic employees:

7%? Actively responded to the national "Rural Revitalization" initiative,using infrastructure development to support rural poverty alleviation

Life Below Water? Focused on developing rural wastewater treatment solutions? Reduced water eutrophication and maintained ecologicalbalance through rural wastewater treatment infrastructureconstruction

Sustainable Cities and Communities? Number of environmental protection training sessions:

? Total hours of environmental protection training:

? Encouraged employees to adopt green travel

Peace, Justice, and Strong Institutions? Conducted

legal awareness campaigns? Internal audits:

? Contracts reviewed in the year:

18,221

? Conducted

anti - corruption training sessions, covering

3,243

participants? Coverage of business ethics and anti - corruption training:

100%

Responsible Consumption and Production

? Obtained China Environmental Label Product Certication? In 2024, the Tianjin, Jiuquan, and Wuwei factories completedISO14001 environmental management system certication? General waste recycling and digestion rate:

100%

Life on Land

? Considered biodiversity protection during the entire project lifecycle? Engaged in land protection and ecological restoration to prevent

desertication and soil erosion

United NationsSustainable Development

Goals (SDGs)

Annual Performance Overview

No Poverty

Zero Hunger

Good Healthand Well - being

Quality Education

Clean Water andSanitation

Clean Water andSanitationAordable andClean EnergyDecent Work andEconomic GrowthIndustry, Innovation,and InfrastructureReducedInequalitiesSustainable Citiesand Communities

Responsible Consumptionand Production

Climate Action

Life Below Water

Life on Land

Peace, Justice, andStrong Institutions

Partnershipsfor the Goals

After nearly thirty years of development and extensive practice, DAYU Irrigation Group has deeply realized that, compared toelds like municipal water supply and trac and electricity infrastructure, the marketization of agricultural water conservancyinfrastructure is still far from sucient. This has led to prominent issues such as slow technological innovation, diculty inraising funds, lack of compatible engineering and management infrastructure, and low operational eciency.Since 10 years ago, DAYU Irrigation Group began investing in and operating the rst national pilot project that introduced socialcapital into farmland water conservancy construction in Luliang, Yunnan. Over the past decade, DAYU has been involved inmost major mechanism reforms, model innovations, and project practices in the agricultural water sector. Moreover, during thisdevelopment process, the company participated in several “rsts” in the country, including the rst government and socialcapital cooperation irrigation demonstration project, the rst integrated irrigation construction and operation (EPC+O) project,the rst large-scale irrigation construction-operations-transfer (BOT) project, and the rst large-scale irrigation modernizationconcession project implemented with a new mechanism. We have come to recognize that in order to further prioritize waterconservation, it is crucial to further implement General Secretary Xi Jinping's dual approach, and the key path lies in "seekingtechnology, funding, and eciency from the market." This is also a major challenge and opportunity faced by all water-savingenterprises, including DAYU Irrigation Group.We are confident that by deeply implementing the "dual approach" , DAYU Irrigation Group will further develop superiortechnologies, secure more funds, achieve higher eciency, and fully contribute to the faster development of China’s water-saving industry.

We believe that under the traditional model, the construction of agricultural water infrastructure is constrained by governmentfunding, construction standards, and management systems, which limits the emergence and application of new technologies.In contrast, under a marketized model, both water-saving enterprises and water users invest real capital. This shift in mindsetfrom "I have to save water" to "I want to save water" forces the water-saving industry to continuously develop more advancedtechnologies and products. At the same time, water-saving enterprises must also support cost reduction and efficiencyimprovement through technological innovation.

In response to the urgent demands from the market, DAYU Irrigation Group has comprehensively developed smart productsand core software models, investing 120 million RMB in 2023 alone. DAYU’s “innovative technical solutions” cover 8 majorcategories, 29 series, and over 1,700 models. DAYU's smart factory in Tianjin has become the largest global water-saving R&D andmanufacturing base. The marketization of water-saving technologies has reshaped the landscape, and DAYU’s new technologiesare rapidly being promoted and used across the country, as well as being exported to over 60 countries and regions.

Feature - DAYU's Joint Eorts Path

Seek New Technologies on the MarketMarket Provides Better Technologies

DAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report

DAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report

For agricultural water conservancy projects, which are public assets with low protability and mobility, DAYU has developeda variety of investment and financing solutions. After market validation, 18 “innovative model plans” with clear logicalframeworks and operational paths have been formed. By exploring potential returns, expanding value-added services,leveraging technology to reduce costs and improve eciency, and enhancing professional capabilities and service systems, weare able to mitigate risks at various stages and oer customized “one county, one policy” investment and nancing strategies.These eorts help identify the optimal modes and best pathways for social capital to enter the sector.

Seek Capital from the Market

In 2022, DAYU Irrigation Group invested in the rst major water conservancy project in Gannan Su District, a key area supported by nationalministries: the Meijiang Irrigation District, with a total investment of 4.38 billion RMB. By introducing a market-oriented mechanism,

1.22 billion RMB in social capital was attracted, bridging the funding gap. DAYU also provided 27 years of market-based operation and

maintenance services for the irrigation district’s key water networks and supporting eld engineering, ensuring the water safety for thegrain-producing areas of Gannan. Furthermore, in Yumen, Gansu, located in the upper reaches of the Yellow River, DAYU entered into astrategic partnership with a state-owned enterprise and jointly invested in the Yumen Shule River water diversion project, enhancing thevalue of 35 million cubic meters of agricultural water by turning it into industrial water.We deeply understand the challenges of market-oriented reform in agricultural water infrastructure, but we rmly believe that, with thespecial value of water resources and the continuous push of policies, more and more market funds will be directed towards water-savinginitiatives, ultimately achieving a cycle where water sustains water.

Market Provides Capital

At present, in the construction of agricultural water infrastructure, construction is no longer the challenge; the core issue is theecient, stable, and sustainable operation. To address this pain point, DAYU’s "Water Butler" model has emerged. We focuson irrigation districts, reservoirs, urban and rural water supply, high-standard farmland, and rural wastewater management,promoting marketized, professional, and property-based management and "butler-style" operation services. As DAYU’s rststrategic priority, we are committed to becoming the largest operator of agricultural water infrastructure services in the country,ensuring that valuable water resources and government investments continue to deliver lasting benets.

Seek Higher Eciency on the Market

In the "National 150 Project" — the Niu Luling Irrigation District in Hainan Province, covering 570,000 mu — DAYU Irrigation Group hasapplied market-oriented professional operation systems and digital twin technology, which has reduced the project’s operating costsby more than 55% compared to traditional models, and has extended related applications to urban and rural water supply elds.Similarly, the marketization mechanism combined with large-scale planting can effectively improve the efficiency of water-savingagricultural production. We applied high-yield drip irrigation technology for corn in Ningxia Tongxin, where a 12-person teamcultivated 48,000 mu of corn, achieving an average yield of over 1 ton per mu in a single season. This is 300 jin more per mu comparedto traditional farming. In Qi River, Shandong, the corn planting density increased from 4,500 to 5,500 plants per mu, and the yield permu rose from 1,550 jin to 1,810 jin, with a labor reduction rate of 83%, eectively achieving the goal of "self-sustaining land."

Market Provides Higher Eciency

Environment - Water Nourishing Ecology, Green Growth for AllEnvironment - Water Nourishing Ecology, Green Growth for AllDAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report

2425

Water NourishingEcology, GreenGrowth for All

Resource and Energy ManagementAddressing Climate ChangeWaste ManagementCircular EconomyBiodiversity

Medium ImportanceMedium ImportanceMedium ImportanceMedium ImportanceGeneral Importance

TopicDouble Materiality Level

Environmental protection training:

sessionsTotal environmental investment:

million RMBISO14001 Environmental Management System certication completed by Tianjin, Jiuquan, and Wuwei factoriesTotal waste emissions reduced by

37.54

tons compared to 2023Employee digital oce carbon reduction increased by

145.91

tons compared to 2023

Corresponding SDG Goals2024 Highlights in this Chapter

Clean Waterand Sanitation

Industry, Innovation,and Infrastructure

Sustainable Citiesand CommunitiesResponsibleConsumptionand Production

Climate ActionLife on Land

Water Resource ManagementHigh Importance

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2627

Addressing Climate Change

Governance

Strategy and Risk Management

With the global deepening of the climate change agenda,enhancing the climate resilience of ecosystems andestablishing a global system to adapt to climate change haveincreasingly become key issues on the international agenda.At the 29th Conference of the Parties (COP29) to theUnitedNations Framework Convention on Climate Changeheld inNovember 2024, countries reached consensus on climatefinance targets and the establishment of a global carbonmarket mechanism. The main outcomes included collectivequantitative targets for climate nance and the creation of aUN-supervised global carbon market mechanism, advancingglobal unified action on climate change. In addition tosupporting the establishment of funding and carbon markets,the conference launched the "Water for Climate Action"initiative, which for the first time closely integrates waterresource management with climate policy, emphasizingthe inclusion of water-related mitigation and adaptationmeasures in Nationally Determined Contributions (NDCs) andNational Adaptation Plans (NAPs).

DAYU Irrigation has set up a dedicated Project Safety and Environmental Protection Committee to oversee overall safetyand environmental protection work. The committee regularly organizes risk analysis meetings to identify climate andenvironmental risks and assess both actual and potential climate-related risks and opportunities that may impact ourbusiness. The committee also analyzes the potential environmental and climate impacts of our operations, and formulatescorresponding risk response plans, with responsibility assigned to individuals. Going forward, we will continue to enhance ourcapacity to respond to climate change and contribute to global eorts in addressing climate change, improving water resourceeciency, and advancing international cooperation.

The company fully recognizes that the risks posed by climate change stem primarily from physical risks and transition risks.Physical risks refer to the losses caused by environmental changes due to climate change, which impact economic and socialsystems, while transition risks refer to the specic challenges companies face when shifting to a low-carbon economy.In response to these risks, in 2024, DAYU Irrigation identied and analyzed specic risks, closely monitoring the impact of theserisks on the company’s nancing capabilities and cash ow, and developed mitigation measures for identied risks. Theseeorts are aimed at formulating contingency plans to enhance our adaptability to climate change.

Climate Change-Related RisksCompany Response Measures

Acute Risks? Infrastructure

Extreme weather events like heavy rainfall,typhoons, and mudslides may cause suddenwater level surges, urban flooding, reservoiroverflows, dam breaches, and drainage systemfailures. Droughts could lead to water shortages,soil shrinkage, and damage to irrigation channels,severely threatening the safety and functionality ofwater conservancy infrastructure, bringing directnancial losses to the company.

? Assess potential acute climate risks that may

arise in production and operations and developcorresponding contingency plans.? Incorporate climate risk into the planning, siting,

design, material selection, construction, andoperation & maintenance stages of infrastructureto improve the climate resilience of infrastructureand enhance operational safety.

ChronicRisks

? Operational CostsTo cope with climate change, investment in therenovation of outdated facilities, developmentof new water-saving technologies, and smartmanagement systems will be necessary.Additionally, global warming may increase theoperation and maintenance costs of productionequipment.? Energy TransitionGlobal energy transitions may lead to uctuationsin electricity and raw material prices, while thecompany’s commitment to clean energy couldcause rising costs and adjustments in energystructures.? Market DemandWith ongoing climate changes, market demandfor water-saving facilities and water conservancyinfrastructure may shift. Climate variability causedby long-term changes could aect the company'sstrategic positioning in dierent regions.

? Improve the company’s management system toenhance its ability to adapt to climate change.? When selecting sites for new factories or oces,consider geographical factors and climateconditions, and evaluate construction and laborcosts comprehensively.? Focus on energy transitions and the construction

of intelligent infrastructure, prioritize thedevelopment of energy-saving and emission-reducing technologies, and enhance thecompany’s ability to quickly adapt to potentialmarket demands through digital management.? Strengthen carbon emission managementacross all aspects of the company’s operations,from manufacturing to oce work.

Physical Risks

COP29 Declaration on Water for Climate Change

Under the guidance of the "dual-carbon" goals, China continues to prioritize climate change adaptation, driving high-qualitygreen and low-carbon development. The country is advancing global climate change efforts with new quality productiveforces actively fullling its responsibilities as a major power, strengthening domestic climate risk management, and enhancinginternational cooperation. Based on theNational Climate Change Adaptation Strategy 2035and the dual-carbon “1+N”policy system, the Chinese government is deepening the green and low-carbon transformation, enhancing climate changemonitoring, early warning, and risk management through technological innovation and institutional guarantees. At COP29,China released theChina Action Plan on Early Warning for Climate Change Adaptation (2025-2027), aiming to enhance earlywarning capabilities in developing countries, helping them adapt to climate-induced environmental changes and proactivelyaddress risks and challenges. Furthermore, theClimate Change Report (2024): "Dual-Carbon" Goal-Driven New QualityProductive Force Developmentgreen paper, published in December 2024, proposed accelerating the development of newquality productive forces and promoting structural transformation, showing China’s active participation in global climatechange governance, and contributing Chinese wisdom and solutions to the world.As a leading company in the water conservancy sector, DAYU Irrigation Group understands the signicant impact of climatechange on water resource use and agricultural development. With climate change becoming an increasingly pressing issue,enhancing business resilience and strengthening climate adaptability are essential tasks for both DAYU Irrigation and the entirewater conservancy industry. The company follows theTask Force on Climate-Related Financial Disclosures(TCFD) guidelines,analyzing our efforts to address climate change risks from four aspects: governance, strategy and risk management,identication and management of climate change risks, and identication of climate change opportunities.

Environment - Water Nourishing Ecology, Green Growth for AllEnvironment - Water Nourishing Ecology, Green Growth for AllDAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report2829

Climate Change-Related RisksCompany Response Measures

TechnologyRisks

As climate change intensies, more ecient water-saving technologies and smarter water resourcemanagement systems are required. The adoptionof renewable energy-driven infrastructure mayalso be necessary, requiring signicant investmentin research and development or procurement costs.Additionally, selecting an improper technologicalpath may result in immature technologies or limitedapplication, increasing the risk of transformationfailure.

? Strengthen the R&D system and the commercialization

of scientific research achievements to ensurethat R&D projects lead to actual improvements inproduction capacity and equipment eciency.? Enhance DAYU’s industry leadership andmarket insight, staying ahead of market trendsand adjusting the industrial layout to maintaincompetitive advantage.? Systematically train technical talent and build astrong innovation workforce.Policy andRegulatoryRisks

? Compliance CostsGovernments may impose stricter regulationson water resource management, protection,and sustainable use. Higher standards for watertreatment and ecological restoration couldincrease the company's compliance costs.? Carbon QuotasAs global and domestic carbon trading marketscontinue to develop, uctuations in carbon pricesmay impact the company's energy structure andlead to increased carbon emission control costs.? Environmental Data ReportingRegulatory bodies may impose higher requirements

for the accuracy of environmental data submittedby companies. Strict standards for informationdisclosure, as well as the potential for third-partyverification, could increase the pressure on thecompany’s environmental data collection andsustainable development reporting, raising internalcoordination costs and risks of non-compliance.

? Continuously track relevant policies and regulations

from governments and exchanges, strictlycomplying with reporting requirements.? Stay updated on the development of domesticand international carbon markets and developreasonable emission reduction plans, makingearly adjustments.? Improve the company’s environmentaldata reporting system, regularly publishsustainability reports, and strengthencommunication with stakeholders.? Enhance carbon emission managementand promote the company’s overall greentransformation. Regularly disclose Scope 1 andScope 2 greenhouse gas emissions data andsubject the company to external scrutiny.

MarketRisks

? Customer PreferencesAs China’s dual-carbon goals are increasinglyrealized, customers may demand more eco-friendly and efficient water resource solutions.Failure to meet these emerging demands couldlead to a decline in market share.? Competitive LandscapeTechnological innovation could attract new entrantsinto the industry, increasing competitive pressureand accelerating the need for transformation.? Supply Chain ResilienceClimate change could damage suppliers, aectingraw material supply, product transportation, andproject construction. This could, in turn, transmitrisks to the company, resulting in nancial risks.

? Continue advancing low-carbon technologicaltransformation, prioritizing the developmentof advanced technologies, and continuallylaunching water-saving devices and smartwater-saving solutions that meet market needs,enhancing production efficiency and refiningmanagement.? Coordinate with supply chain partners andenhance the capabilities of suppliers, fosteringtheir awareness and responsiveness to climatechange risks, thereby increasing supply chainresilience.

ReputationRisks

As attention to climate change issues rises,companies that fail to take timely actions toaddress climate change or disclose relatedsustainable development information inaccuratelyor untimely may face reputation risks for notmeeting stakeholders’ expectations.

? Continuously monitor stakeholder demands,

establish regular communication mechanisms,and respond to concerns transparently andpublicly on a regular basis.

Transition Risks

Climate Change Opportunities

Infrastructure Construction Demands

Agricultural Water Management Upgrades

Water Quality Improvement and Pollution Control

International Cooperation and Market Expansion

COP29 ocially launched the "Water for Climate Action" initiative, which for the rst time closely integrates water resourcemanagement with climate policy. The interconnections between water resources, climate change, biodiversity loss, anddesertification have received unprecedented attention. "Water conservation" has become an essential tool for the globalcommunity to address climate change.Therefore, on another level, climate change also presents potential opportunities for the company. Based on our identicationand response to climate change risks, we are also highly focused on the transformation opportunities presented by climatechange. We have integrated these opportunities into the company’s future development strategy, actively positioning ourselvesto accelerate the company’s transformation.

? Climate Adaptation ProjectsWith the increasing frequency of extreme weather events and chronic climate risks, there will be growing demand formore climate-resilient ood prevention and drainage systems, smart water resource management systems, agriculturalwater-saving equipment, and comprehensive river basin management projects.? Smart City ConstructionThe combination of climate change and rapid urban development has created a need for early warning systems toaddress natural disasters such as ood prevention, ood damage, and water shortages. The design and implementationof urban rainfall and ood disaster management solutions have become key focuses in the development of smart waterinfrastructure.

DAYU Irrigation Group focuses on the areas of "Three Rural Areas and Three Water Issues" (ecient agricultural water-saving, rural wastewater treatment, and safe drinking water for farmers) in terms of planning and design, intelligentmanufacturing, informatization, and operations & maintenance. Through comprehensive solutions, the companyresponds to the new national agricultural and rural development demands, supports rural revitalization initiatives, andhelps enhance China’s agricultural adaptation to climate change.

The long-term climate change impacts, such as water quality deterioration and water eutrophication, may further leadto regional environmental degradation. DAYU Irrigation’s layout in areas such as centralized wastewater treatmentand "beautiful rural areas" provides new technologies and models for these sectors, further solidifying the company’sleadership in the industry.

Firstly, developing countries and emerging markets are more likely to be significantly impacted by climate change,creating a strong demand for water resource management and infrastructure construction. Secondly, countries like thosein the Middle East, Central Asia, Africa, and Russia, with which we have established good cooperative relationships,are expected to lead the way in market education and business upgrades. Additionally, the "Belt and Road" initiativeprovides new opportunities for water-saving and water resource management in countries along the route. DAYUIrrigation will continue to strengthen its international inuence, expand its overseas business, and contribute Chinesewisdom to the global water resource management market.

Environment - Water Nourishing Ecology, Green Growth for AllEnvironment - Water Nourishing Ecology, Green Growth for All

DAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report

3031

Carbon Emission Management

While fully identifying climate-related risks and opportunities, the company actively responds to the national "dual-carbon"goals by implementing strict emission management across the Group. In 2024, through measures such as improvingproduction processes, optimizing production workflows, promoting digital and intelligent transformation, and developingenergy-saving technologies, DAYU Irrigation Group continuously advanced its carbon emission management eorts to reducegreenhouse gas emissions and achieve green, low-carbon development.Indicator

DAYU Irrigation Group 2022 - 2024 Greenhouse Gas Emissions

Environmental Management Internal

System List

Wuwei Factory ISO14001Environmental ManagementSystem Certicate

Tianjin Factory ISO14001Environmental Management

System Certicate

Jiuquan Factory ISO14001Environmental ManagementSystem Certicate

Environmental Protection and Energy Saving Management Measures

Environmental Protection Management ManualEnvironmental Management System ProceduresEnvironmental Management Activity RecordsEnvironmental Protection and Energy Saving Management Regulations for Supply Chain Companies

Note: The total greenhouse gas emissions increased in 2024 due to the expansion of production scale and increased business volume.

Unit202220232024Total Greenhouse GasEmissionsGreenhouse Gas Emissions –Scope 1Greenhouse Gas Emissions –Scope 2

tons CO? equivalent

tons CO? equivalent

tons CO? equivalent

13,314.752,215.9911,098.76

12,126.692,044.0610,082.63

15,756.63

5,391.0910,365.54

Implementing Green ProductionDAYU Irrigation Group strictly complies with environmental management laws and regulations such as theEnvironmentalProtection Law of the People's Republic of China, Air Pollution Prevention and Control Law of the People's Republic ofChina, Water Pollution Prevention and Control Law of the People's Republic of China, and theEnvironmental Noise PollutionPrevention and Control Law of the People's Republic of China. We integrate energy-saving, emission reduction, andenvironmental protection concepts into every stage of production and operations. From organizational structure, systems, toimplementation, we collaborate across all levels to establish and perfect our environmental protection management system.In 2024, the Tianjin, Jiuquan, and Wuwei factories completed ISO14001 Environmental Management System certication andreceived the China Environmental Label Product Certication, setting high standards for environmental management systemconstruction.

Energy Management

In terms of building the energy management system, DAYU Irrigation Group has developed the Group's energy managementsystem according to the GB/T 23331-2020 Energy Management System Standard. We have rened energy management throughmethods such as setting energy policies, energy targets, and performance evaluations. The company’sEnvironmental Protectionand Energy Saving Management Measuresclearly define energy-saving management requirements for different scenarios,including production workshops, laboratories, oce spaces, cafeterias, living areas, and infrastructure maintenance. Throughclear execution supervision measures and handling requirements, we ensure the implementation of energy-saving measures.Additionally, the subsidiaries of DAYU Group actively promote mutual learning and experience sharing, using pilot projectsto drive energy-saving and emission-reduction initiatives across the Group. The company also conducts market research,introduces advanced energy-saving and emission-reduction technologies, improves production processes, and enhancesproduction eciency to reduce excessive energy consumption and unnecessary waste at the production end.

Hazardous wasteclassied storage, with a100%collection anddisposal rate

100%timelyresponse rate for socialenvironmental complaints

Eective reprevention, with nomajor res occurring

Zeroenvironmentalpollution incidents(including air pollutionand noise pollution)

The company manages energy consumption and pollutant emissions in production, work, and living areas within its jurisdictionthrough theEnvironmental Protection and Energy Saving Management Measures. Guided by the principles of "full participation,strengthening supervision, prevention first, protecting the environment, and complying with local management policies andrequirements," the company established theEnvironmental Protection and Energy Saving Supervision Committee, chaired by theGroup’s chairman, with board chairs or general managers from each business division and subsidiary as members. Each subsidiaryalso has its own sub-committee to implement the "one person in charge" responsibility system for environmental protection andenergy saving, ensuring the implementation of national and company environmental protection policies and regulations.In addition, the company has established management measures such as theEnvironmental Protection Management Manual,Environmental Management System Procedures, Environmental Management Activity Records, andEnvironmental Protectionand Energy Saving Management Regulations for Supply Chain Companiesto ensure that environmental management isbacked by concrete guidelines, forming a comprehensive system of institutional guarantees.Based on the system framework, DAYU Irrigation Group has defined the following environmental management goals for2024: "Hazardous waste classified storage with a 100% collection and disposal rate; 100% timely response rate for socialenvironmental complaints; fire prevention measures in place with no major fires occurring; zero environmental pollutionincidents (including air pollution and noise pollution)." These goals are being pursued through the improvement of productionprocesses, optimization of production workflows, and the development of energy-saving technologies, with a focus onenhancing energy, water resource, waste management, and noise control.

Environment - Water Nourishing Ecology, Green Growth for AllEnvironment - Water Nourishing Ecology, Green Growth for AllDAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report

3233

110kW Permanent Magnet Variable Frequency Two-Stage Compressed Air Machine

Indicator

Indicator

DAYU Irrigation Group 2022 -2024 Energy Usage

DAYU Irrigation Group 2022 - 2024 Water Resource Usage

Note: The total energy consumption increased in 2024 due to the growth in business volume and the expansion of production scale.

Unit

Unit

2022

2022

2023

2023

2024

2024

Energy Consumption – Diesel

Water consumption

Energy Consumption – Natural Gas

Total wastewater discharge

Energy Consumption – Gasoline

Water use intensity

Energy Consumption – PurchasedElectricity

Tons

tons

Cubic Meters

Tons

Tons

tons/million RMBrevenue

MWh

41.81

109,969.00

14,764.00

70,380.16

684.81

32.33

19,461.26

18.46

92,763.00

13,977.00

62,709.60

642.81

26.87

17,679.52

19.58

96,766.00

13,136.67

77,412.80

650.00

18,175.58

Water Resource Management and “Three Wastes” Management

Water Resource Management

“Three Wastes” Management

DAYU Irrigation Group considers the water resource and waste management as essential components of its environmentalmanagement system and carries out rened management based on this system framework.In accordance with theWater Pollution Prevention and Control Law of the People's Republic of China, the company classieswater use into production water and domestic water. Wastewater from production processes is used for circulating coolingand is not discharged externally. Wastewater from domestic use is professionally treated to meet the Grade III limit values ofIntegrated Wastewater Discharge Standard(DB12/356-2018), and is uniformly discharged through designated outlets into theindustrial park's sewage pipeline network, ultimately entering the park’s wastewater treatment plant for further treatment.In addition, the company is committed to raising employees' awareness of water conservation, strengthening daily education,and encouraging water-saving habits.

The company strictly complies with pollution prevention laws and regulations including theLaw on the Prevention and Controlof Environmental Pollution by Solid Waste, theAir Pollution Prevention and Control Law, and theEnvironmental Noise PollutionPrevention and Control Law, and implements classied management accordingly.For waste management, production-generated waste is categorized into general waste, hazardous waste, and domestic waste,and processed through “reduction, recycling, and harmless treatment.” Hazardous waste such as used motor oil, oil drums,oil-soaked rags, spent activated carbon, and ion exchange resins is collected at xed hazardous waste storage areas within thefactory and handled by qualied third-party companies in accordance with theStandards for Pollution Control on HazardousWaste Storage. General production waste (e.g., leftover materials and defective products) is collected using designatedstorage facilities and areas, with measures in place to prevent dispersion or leakage. These are recycled internally via speciedtransport routes, achieving a 100% recycling rate. Domestic waste is handled by municipal sanitation departments.

Leftover Material Stacking for Crushing

Granulating and Recycling of Scrap Material

In 2024, DAYU Equipment Development Group's JiuquanFactory benchmarked the successful experience of theTianjin factory and replaced the existing high-energy-consuming 75kW industrial frequency air compressorwith an advanced 110kW permanent magnet variablefrequency two-stage compressed air machine. Thesystem was also equipped with a refrigerant dryer andexhaust cooling system, which not only improved supplyefficiency but also successfully resolved the previoushigh-temperature environment issue. This equipmentupgrade reduced energy consumption by approximately

39.59%, while also lowering maintenance and repair

costs, improving the working environment for employees,and providing a quick return on investment for the factory.

In 2024, DAYU Equipment Development Group’s Jiuquan Factory introduced two PVCproduction lines and two high-speed injection molding machines, while the WuweiFactory introduced two PE production lines. This resulted in a 300% improvement infactory production eciency and approximately 30% energy savings.

Case - Jiuquan Factory Replaces Air Compressors and Implements New Energy-Saving Measures

Case - Production Line Process Improvement and New Equipment for Energy-Saving

New PE Production LineNew Injection Molding Machines

2024Technical Innovation Award

Third PrizeManufacturing DivisionEquipment Technologyand EciencyImprovement Program

22.10

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3435

IndicatorIndicatorUnitUnit202220222023202320242024

DAYU Irrigation Group 2022 - 2024 Waste DischargeDAYU Irrigation Group 2022 - 2024 Air Emissions

Total solid waste emissions

PM (Particulate Matter) Emissions

Hazardous waste intensity

Hydrogen Chloride Emissions

Total Air Pollutant Emissions

Non - hazardous waste emissions

TVOC (Total Volatile Organic Compounds)Hazardous waste emissions

NMHC (Non - Methane Hydrocarbons)

Non - hazardous waste intensity

Vinyl Chloride Emissions

tons

tons

tons/million RMBrevenue

tons

tons

tons

tonstons

tons

tons/million RMBrevenue

kg

116.64

0.03

0.0002

115.92

3.81

0.73

0.76

0.0341

3.51

131.78

0.16

0.0004

0.27

5.78

1.27

12.2

0.01

4.62

130.52

5.06

1.26

0.29

0.0378

0.110.16

94.24

0.26

91.88

10.03

0.76

0.45

In 2024, DAYU Irrigation Group continued to prioritize air pollutant management, equipping all emission points with appropriateenvironmental protection facilities and commissioning third-party institutions to conduct regular monitoring, ensuring stable andcompliant emissions while eliminating fugitive emissions. To further enhance the factory’s monitoring and control capabilities for volatileorganic compounds (VOCs), the Tianjin factory of the Equipment Development Group added a VOC treatment unit in its water meterworkshop. This equipment was veried by professional institutions to meet the emission rate and concentration limits required by the

Emission Control Standard for Volatile Organic Compounds from Industrial Enterprises(DB12/524-2014) and theIntegrated EmissionStandard of Air Pollutants (GB16297-1996).

VOC Treatment Equipment – Tianjin Factory

Note: Total air pollutant emissions increased in 2024 due to expanded production scale and business volume.

Practicing Low-Carbon OperationsDAYU Irrigation Group continues to promote green and low-carbon operations, advocating for a green oce culture. Basedon the DAYU Irrigation Low-Carbon Environmental Behavior Guidelines, the company continuously guides employees todevelop green and low-carbon living habits. Starting from daily life, employees are encouraged to maintain the overall greendevelopment environment of the company through personal actions.In the company’s daily operations, DAYU Irrigation Group promotes digital and paperless oces throughout the entire group.The company advocates for employees to digitally record activities through an online management platform, improvingwork efficiency through methods like online meeting minutes, cloud document collaboration, and digital communication.Additionally, the company further cultivates employees' low-carbon office habits through live streaming of key meetings,video and telephone conferences, and online approvals. DAYU also continues to display the calculated carbon reduction foreach employee’s respective business, increasing their sense of participation and responsibility in energy-saving and emission-reduction practices. In 2024, the total carbon reduction from employees’ digital oce practices amounted to 2,190.35 tons,marking the third consecutive year of improvement in oce carbon reduction.

Carbon Reduction from Attendance

202220232024

1,959,60

2,044,44

2,190,35

0.0002

0.0210

Noise ManagementEach of DAYU Irrigation’s factories identifies noise sources in production and environmental protection equipment such as injectionmolding machines, cooling systems, machining equipment, and exhaust fans. In 2024, newly purchased equipment adopted the latestgearboxes and screws to reduce operating noise. Professional institutions were commissioned to monitor factory noise levels to ensurecompliance with theEnvironmental Quality Standard for Noise at all factory sites.

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DAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report3637

IndicatorUnit202220232024

2024 Environmental Protection Eorts

Environmental Protection

Training Sessions:

Number of Energy-Saving andEmission Reduction Projects:

hoursmillion RMB

Total Training Hours: Total Environmental

Investment:

101271

The company has advanced equipment updates and reuse

in oce and cafeteria areas, promoting the use of energy-

saving appliances. For example, the office replaced all

lighting with LED xtures, and the cafeteria installed energy-

ecient air conditioning. Additionally, oce furniture such

as desks and chairs that were retired was reallocated for

reuse in dormitories and factory areas. Beyond system

requirements and digital management reforms, DAYU

Equipment Development Group organized 10 environmental

protection-related training sessions in 2024, including

content on the company’s environmental management

system and theEnvironmental Protection Law of the

People's Republic of China. A total of 27 hours of training

were provided, with 157 participants.

Environment Protection Training

Protecting the EcologicalEnvironmentn 2024, DAYU Irrigation Group strictly adhered to theEnvironmental ProtectionLaw of the People's Republic of Chinaand theSoil and Water Conservation Lawof the People's Republic of China, actively responding to the implementation oftheChina Biodiversity Conservation Strategy and Action Plan (2023-2030). Fromthe perspective of the project lifecycle, the company thoroughly considered theecological environment and biodiversity impacts of its projects, while leveragingits strengths to carry out soil and water conservation, ecological restoration,pollution control, and other environmental protection work.At the beginning of the design of DAYU's various projects, we focused onecological environmental protection, practicing the concept that “mountains,water, forests, fields, lakes, grasses, and sand” is a community of life, andthrough the Project Safety Committee, we have included the impacts ofthe project on the surrounding ecological environment into the scope ofthe assessment, and we have implemented in-depth water ecological andenvironmental management in ecological management of drains and channels,and in ecological management of rivers and lakes. We will further implementthe water ecological environment management into the ecological managementof drainage channels, river and lake connectivity, water resources storage andother projects, contributing to the water ecological restoration. We also fullyconsider the function of the project on the basis of ecological factors, fromthe selection of ecological building materials, ecological and environmentalprotection equipment used in environmental protection construction programdevelopment, as far as possible to reduce the impact of the project on theecological environment.

2022–2024 Oce Carbon Reduction Data Comparison

Carbon Reduction from Live Streaming

Carbon Reduction from Approvals

Carbon Reduction from Smart HRCarbon Reduction from Logs

Carbon Reduction from Attendance

Carbon Reduction from Phone ConferencesCarbon Reduction from Video Conferences

Carbon Reduction from Company Directory

Carbon Reduction from Smart Forms

kg

kg

kgkg

kg

kgkg

kg

kg

171,423.00

59,567.0035,425.00

156,989.00

390,428.00

262,723.35

140,178.00

126,019.20167,949.96

714,789.60

141,678.00

127,165.97168,000.34

715,002.30

138,692.00

124,880.00167,890.00

714,306.00

59,589.6025,728.85

156,991.08

390,475.20

158,560.99

390,501.60

402,649.81

60,613.5026,179.95

Environment - Water Nourishing Ecology, Green Growth for All

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Leading in Smart Water,Sharing ResponsibilityTogether

Product R&D and Technological InnovationHigh - Quality Products and ServicesPromoting Industry DevelopmentRural RevitalizationSustainable Agricultural Water InfrastructureIntellectual Property ProtectionSupply Chain ManagementEmployee Rights and WelfareEmployee Health and SafetyEmployee Development and TrainingDiversity, Equity, and InclusionPublic Welfare and PhilanthropyTechnology Ethics

High ImportanceHigh ImportanceHigh ImportanceHigh ImportanceHigh ImportanceMedium ImportanceMedium ImportanceMedium ImportanceMedium ImportanceMedium ImportanceMedium ImportanceMedium ImportanceGeneral Importance

Topic

2024 Highlights in this Chapter

Corresponding SDG Goals

Double Materiality Level

Number of R&D personnel:

Total R&D investment in 2024:

12.39

million RMBNew patents in 2024:

National standards led/participated in:

/

Employment opportunities created in 2024:

Total donations in 2024:

6.49

million RMB

Zero HungerGood Health and

Well - being

Quality EducationClean Waterand Sanitation

Clean Waterand Sanitation

Decent Work andEconomic Growth

Industry, Innovation,

and InfrastructureReducedInequalities

Sustainable Citiesand Communities

No Poverty

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Innovation DrivesDevelopment

R&D and TechnologicalInnovation

Innovation is the core driver of DAYU Irrigation Group’s sustainable growth.The company continuously improves its innovation mechanisms, increasesR&D investment, strengthens information security, and protects intellectualproperty, enabling comprehensive innovation in technology and managementand laying a solid foundation for high-quality development.Adhering to the principle that "science and technology are the primary productiveforce," DAYU brings together the scientic research strengths of the DAYU ResearchInstitute and Huitu Group to build a top-tier R&D and innovation team.Currently, the R&D team consists of xx members and is gradually evolving from asingle-discipline structure to a multidisciplinary fusion. Team members possessboth solid theoretical knowledge and practical problem-solving capabilities,continuously driving the technological innovation. The DAYU Research Instituteincludes four core departments that, through internal structural optimization,promote scientific and technological advances in water conservancy andprovide ecient and intelligent solutions for agricultural water management.The company tracks R&D policy trends via channels such asPolicy Briengs,ensuring that its research direction aligns with national and local developmentneeds, and maintains a leading market position.

To encourage innovation, DAYU has introduced incentive policies includingtheTechnological Innovation Management Measures, Knowledge InnovationManagement Measures, andQualification and Honor Reward ManagementMeasures, rewarding outstanding teams and individuals in technologicalinnovation. These initiatives not only enhance the company’s innovationcapacity but also contribute to its long-term development.DAYU also actively promotes international scientific cooperation to fosterresource sharing and joint research capacity building. These eorts strengthenindustry-university-research integration and build a long-term cooperationplatform for top talent in the eld.

Research Projects

Department

Innovative ProductsDepartment

Drip Irrigation ProductDevelopment Department

Smart IrrigationDepartment

DAYU successfully implemented the "13th Five-Year" national key R&D program project onEcient Water-Saving Irrigation andIntegrated Application in Western Pastoral Areas, and was approved to undertake major "14th Five-Year" projects such asNewTechnologies and Equipment for Water-Saving and Over-Exploitation Control in North China Groundwater Areas, along withother national-level agricultural research programs. Over the years, we have more than 60 provincial/ministerial-level scienticresearch projects led, more than 600 patents obtained. In 2024, another x new invention patents, x national-level researchprojects participated in, with total R&D investment: xxx million RMB.

Ocial Launch of the China-Kazakhstan Joint International Laboratory for High Water-Eciency Agriculture inArid Regions

DAYU Rural Toilet Septic TankCleaning & O&M Management

System V1.0

Integrated CAST Reactor for RuralDomestic Wastewater Treatment

Data Parsing Method Compatiblewith Multiple IoT Communication

Protocols

DAYU Research Institute

The company led scientic and technologicalresearch projects at the provincial and ministeriallevels or above

Cases60+

In 2024, DAYU Irrigation Group collaborated with China Agricultural University and Kazakh National Agrarian ResearchUniversity to establish the joint laboratory, leveraging rich experience and resources in agricultural science and education.The cooperation spans teaching, scientic research, and technology transfer, and aims to create synergies in technologydevelopment, talent cultivation, dissemination, and standard-setting.The project also supports the development of a China-Kazakhstan water-saving agricultural demonstration parkand cooperative education programs to foster leading agricultural talent. It contributes to scientific and industrialadvancement in irrigation, saline-alkali land management, and agricultural machinery, and was listed in the officialbilateral cooperation agreements signed by the heads of both countries.

Case - China-Kazakhstan Joint International Laboratory for High Water-Eciency Agriculture in Arid Regions

Science, Technology and InnovationManagement (STIM) PolicyManagement Policy of Qualicationand Honor AwardsKnowledge Innovation ManagementPolicy

Innovation incentives

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Focusing on breakthrough innovations in areas lacking proprietary technology, DAYU developed an end-to-end process for drip emitterdesign and production - from scenario analysis to ow channel modeling, simulation, 3D printing, injection molding, testing, andstandardization.With standardized emitter shapes and ow channels, DAYU enhanced hydraulic performance, clog resistance, manufacturing accuracy,and customization. This breakthrough helped the company overcome previous weaknesses in self-developed core products andmitigate quality risk from external suppliers.In 2024, DAYU was recognized as aSingle Champion Manufacturerin the eighth batch released by the Ministry of Industry andInformation Technology (MIIT) for its “Complete Drip Irrigation Equipment,” arming its global leadership in production technologyand market share.

Traditional valve switches are inconvenient and require manual operation in harshenvironments, such as walking into irrigated fields. DAYU developed a smart electricbuttery valve using IoT technology that supports both remote APP and contactless card-based control, replacing manual valve operations.Its integrated metering and control design allows for scheduled switching, enablingexible use and precise irrigation. The valve features stable performance, eld powersupply, abnormal condition monitoring, and intuitive status feedback.In 2024, the valve was applied in theHexi Corridor High-Yield Water-Saving CropDemonstration Project, covering about 500 mu. It reduced labor and resource input,increased yields by 10%, cut water use by 10%, and improved water-use eciency byover 15%, enhancing both agricultural productivity and water conservation.Innovative Product – Drip Irrigation Series

Innovative Product – Smart Electric Buttery ValveIndicatorUnit

DAYU Irrigation 2022 – 2024 R&D Data

R&D Investment

Number of R&D PersonnelNational Key ProjectsParticipated

R&D Investment / MainRevenue

R&D Personnel Ratio

10,000 RMB

PeopleCases%

%

As a critical public infrastructure project, agricultural water conservancy is a key component of the nation's high-quality and sustainabledevelopment. It is also an industry that urgently requires technological breakthroughs and the establishment of independent intellectualproperty. Guided by the value of “continuous innovation and embracing change,” DAYU Irrigation Group is committed to overcomingbottleneck technological challenges that hinder both the company and the industry. Through independent research and development, thecompany has achieved signicant breakthroughs in areas such as drip irrigation product series, water conservancy informatization terminalproducts, and intelligent high-eciency water-saving irrigation systems.

Smart Electric Buttery Valve

3D Printing of the Drip Irrigation Irrigator

Millimeter wave cloud gaugeLow frequency rotary ute + Resonant horn

The acoustic rain enhancer, an innovation that combines modern acoustics, meteorological science and environmentalscience, utilizes specic acoustic frequencies to “talk” to the clouds in the sky and induce precipitation by enhancing therelative motion of cloud droplets and facilitating the process of merging.In August 2024, at the DAYU IRRAGATION Innovation Team's eld experiment station in Shenmu City, Shaanxi Province, thesonic rain booster was turned on for only 10 minutes before rain fell, adding 33 millimeters of rain to the area in 45 minutes.Sonic rainboosting does not require airborne vehicles, and has the advantages of low cost, fast response, no airspacerestriction, and environmental protection and no pollution, making it an important breakthrough for solving the problem ofwater shortage in arid and semi-arid areas.

Innovative Product -“Sonic Rain Enhancement” Project

2024

Technical Innovation Award

Third PrizeManufacturing DivisionEquipment Technology

and EciencyImprovement Program

2024Technical Innovation AwardSecond PrizeEcient Intelligent Irrigationand Drip Irrigation CloudService ManagementPlatform System

2023年2024年

12,337.55

3.6

8.95

290253

10.4

12,393.90

2.8

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InformationSecurity andPrivacy Protection

Intellectual Property Protection

DAYU Irrigation Group places great emphasis on information security and continuouslystrengthens its information security management systems. Guided by policies such astheData Security Law of the People’s Republic of China, the company has formulatedand implemented a comprehensiveInformation Security Management Measures,which clearly outlines protocols for equipment, account, and password security,standardizes employee operating behaviors, and establishes procedures for dataprotection and virus prevention.In 2024, the company enhanced its information security framework by establishing anInformation Security Committee under the Group’s Work Safety Committee to overseecomprehensive Information Security Management Measures. Additionally, in responseto cybersecurity requirements, the company revised itsNetwork ManagementMeasures, updating the network architecture and role responsibilities. In August 2024,a Cybersecurity Task Force was ocially established to comprehensively enhance theGroup’s network security capabilities.

DAYU Irrigation Group regards independent research and development as a core priority and considers intellectual property (IP)a strategic asset vital to enhancing its competitiveness. The company strictly complies with theCivil Code of the People’s Republicof China,Patent Law,Trademark Law, andAnti-Unfair Competition Law, while continuously rening internal systems such as theIntellectual Property and Brand Protection Management Measuresandthe Innovation Management Measures, to build a sound IPmanagement framework.Departments such as the Legal Risk Control Department, Marketing Management Center, and Scientific Research ProjectManagement Department are responsible for overseeing the lawful and compliant use of external knowledge resources andsafeguarding the company’s patents, software copyrights, and trademarks. Suppliers and partners are also required to comply withIP protection regulations, ensuring the legality of all products and technical documentation.To further enhance IP governance, the company has established a dedicated management team and developed a digitalmanagement platform for R&D information, which systematically maintains records of patents, software copyrights, and standards.By continuously strengthening its risk assessment and management systems, DAYU aims to fully protect its IP rights and ensure thatits innovation outcomes are respected and preserved.

To maintain an ecient and stable data security management system, the companyenforces a strict ban on external remote access to all data devices and hasestablished a comprehensive backup strategy, ensuring regular, encrypted databackups and storage. In 2024, the company performed 1,450 le backups. Networkand system audits were conducted regularly, with numerous patches and updatescompleted throughout the year to ensure safe and stable system operations.The company also held information security training in 2024, covering topics such asSecure Coding Standards. The training achieved 100% employee participation, andthere were zero major information security incidents or user privacy breaches duringthe year.

CLOG (Communications and Liaison Group)Technical Support GroupLogistics Support GroupEmergency Command Center

Emergency Management Framework

Risk Identication

Risk Evaluation

Risk Management Strategies

Risk Response

?Technical Risks: Identify potential risks related to the leakage of trade secrets, patent expiration, or lack of eectiveprotection.?Contractual Risks: Ensure that licensing, transfer, and cooperative agreements adequately protect IP rights.

? Conduct both qualitative and quantitative assessments of identied risks to determine their likelihood and potentialimpact. Use risk evaluation tools to highlight high-priority areas requiring close attention.

? Establish and improve internal IP management systems, including condentiality protocols, application procedures,and infringement alert mechanisms.? Develop emergency response plans for potential IP infringement cases and maintain close cooperation with legaladvisors.? Regularly conduct risk assessments and enhance employee awareness through IP training.

?Proactive Measures: Timely registration, maintenance, and updating of IP rights, as well as strategic patent andtrademark planning.?Reactive Measures: In the event of infringement, promptly initiate legal action to protect company interests, includinglitigation or mediation as necessary.

Risk Assessment and Management System

Information Security Training EmployeeCoverage

2024Management Innovation

Award First PrizeThe construction of “threeplatforms” helps management

innovation to promotethe digitalization andupgrading of enterprise management.

Huitu Group, a DAYU subsidiary, has also implemented a suite of regulations tailored to its business needs, including theInformationSecurity System Compilation, Information System Management Measures (Trial),Disaster Recovery and Data Security Plan, ProjectInformation Security Management Manual, andInformation Security Incident Emergency Response Plan. These documents denethe organizational structure for handling information security incidents and provide emergency response protocols, with regulardrills conducted to ensure immediate, standardized responses in the event of an incident. By combining institutional safeguardswith standardized practices, Huitu Group has built a comprehensive and eective defense against information security risks.

100%

2024 Major information securityincidents

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Integrated whole industry chain and whole value chain

(Investment, Construction, Management, Service)

Corporate VisionTo build a world-renowned, century-old enterprise in water-saving and irrigation.Corporate Mission: MakeAgricultureSmarter MakeCountrysideBetter MakeFarmersHappier

Planning &

Design

Operations &Maintenance

Investment &

Financing

Smart &Intellectualize

Intelligentmanufacturing

Construction

delivery

Information

Chain

Technology

Chain

Talent Chain

Strategic Approach：Three Agricultures, Three Waters, Three Networks; Dual Forces, Joint Responsibilities.Prioritize water conservation spatial balance systematic management two-pronged approach

StandardChain

Service Chain

SmartWater forProsperousVillages

High-Quality andEcient Delivery

Reliable Service and Safe Operation

Water resource management plays a crucial role in enhancing aquatic ecosystemsand promoting rural revitalization. Guided by the “Three Rurals, Three Waters,and Three Networks” strategy, DAYU Irrigation Group focuses on three core areas:

agricultural water-saving, rural wastewater treatment, and safe drinking waterfor farmers. The company builds comprehensive solutions by integrating waternetworks, information networks, and service networks, while fostering extensiveindustry cooperation and multi-stakeholder engagement to realize the vision ofsmart agriculture, beautiful countryside, and happy farmers.Quality is the lifeline of an enterprise. From investment, construction, andmanagement to service, DAYU Irrigation integrates every stage of the industrialchain—including early-stage planning and consulting, mid-stage investment andconstruction, and post-construction operation and maintenance—forming a full-cycle quality management system. Utilizing comprehensive and ecient EPC andEPCO models, the company achieves whole-life-cycle management from design toprocurement, construction, and operation.In 2024, the Group and several subsidiaries obtained GB/T 19001-2016 / ISO9001:2015 Quality Management System Certication.The company has established a four-tier responsibility structure for qualitymanagement. Senior executives lead overall quality governance; the SafetySupervision Department coordinates and oversees quality management; andspecific tasks are assigned to functional departments and positions, ensuringaccountability across all phases. Across various departments and levels, DAYUhas xx quality management personnel responsible for quality assurance,inspection, and measurement standards, ensuring effective and comprehensiveimplementation of the quality system.

Post-delivery operation and maintenanceare central to the company’s business.DAYU promotes three core servicestrategies: institutional innovation,business expansion, and enhancedservice capacity. The company ensureslong-term, high-quality services forrural areas through professional O&Mteam, advanced digital platforms, 24/7customer support, and digital operationsempowerment.During operation, DAYU actively engageswith clients and local communities,openly collects feedback, and ensurestimely response. All projects are requiredto display aCustomer Service NoticeBoardwith a 400-hotline number.Customer feedback is logged, assignedto relevant subsidiaries, and tracked untilresolved.

Strictly adhering to national laws and regulations, the company has formulated53 internal policies—such as theQuality, Safety, and Risk Prevention ManagementMeasuresand theQuality Management Responsibilities and PerformanceAppraisal Regulations—covering all links in the industrial chain. The LegalDepartment also routinely monitors legal updates and provides training, ensuringthe company stays aligned with regulatory developments. A clear accountabilitychain is maintained to enforce quality and safety responsibilities.In project execution, to ensure high-quality and efficient delivery, the companyaligns with theConstruction Law of the People's Republic of China,ConstructionProject Quality Management Regulations, andWater Conservancy Project QualityManagement Provisions, while issuing its own standards like theEngineeringQuality Management GuidelinesandEngineering Materials Management Measuresto regulate construction materials, processes, inspections, feedback, and incidentinvestigations.In 2024, DAYU formulated new standards such as theHuitu Group ProjectConstruction Management Process Guidelinesand theStandardized ConstructionSpecifications for High-Standard Farmland Informatization Projects, providingstructured responsibilities, key tasks, milestones, and workflows for differentproject stages. Supporting tools like theStandard Construction Drawing Atlas,Quality Verication Records, andImplementation Feedback Formsfurther assistproject teams in standardizing operations.The company implements a systematic project quality supervision process thatincludes comprehensive inspections, quarterly oversight, targeted checks, andrandom audits. Based on inspection results, detailed reports are generatedto identify gaps and ensure corrective actions are completed. In 2024, DAYUconducted quality supervision on 22 projects and performed 113 qualityinspections, continuously improving its quality management standards.Quality Management

System Certicate

Product After-Sales Service

Certication

After-Sales Service Certication

DAYU Irrigation Quality Management System

Underpin

Clear ResponsibilitiesResponsibility lists and annual quality

and safety target responsibilityagreements ensure clarity andalignment.

Comprehensive EvaluationA practical KPI and performanceappraisal system links results withpromotion and penalties.

Fullled Duties

Management system certificationand internal/external auditsreinforce supervision.

Standardized Accountability

TheQuality and Safety AccountabilityImplementation Rulesdefine strictprocedures to ensure thoroughenforcement.

Customer demandCustomer satisfaction

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Innovative Mode - High-standard Farmland Franchise Mode Innovation

Huitu Group independently developed a SaaS service platform using a"standardized + multi-tenant" approach, offering a low-cost, high-efficiencygrowth path. Based on agricultural and water conservancy scenarios, theplatform has launched three SaaS products: Integrated Urban-Rural WaterSupply, Small to Mid-Sized Irrigation Districts, and Smart Agriculture. HuituTechnology oversees deployment, maintenance, and security, significantlyreducing customer time and cost. These products have now been implementednationwide.

Facing challenges in traditional agriculture—such as fragmented land, poor post-constructionmanagement, declining profitability, and an aging workforce—DAYU proposed the "High-StandardFarmland + EPC+" model. It builds on the EPC lifecycle framework while adding tailored strategiesfor different projects, resulting in innovative models such as theQuanjiao Model,Pucheng 1.0, andPucheng 2.0.In Pucheng County, DAYU introduced operational maintenance modes, specialty crop cultivation,and industrial integration at dierent construction stages, creating a comprehensive chain spanningconstruction, operation, planting, and industrialization. By combining infrastructure O&M with landuse transfer and planting, the company explored an integrated model for mountainous farmlandreclamation and long-term management.The Quanjiao Model adopted the EPC+O+Land Transfer approach, where social capital stakeholdersparticipated in farming activities like plowing, planting, management, and harvesting. This approachdelivers full lifecycle management—from planning and construction to post-operation, land transfer,and large-scale cultivation.These replicable models encourage complementary advantages and collaborative developmentacross regions, advancing agricultural modernization and reinforcing national food security.

In 2024, the Water Steward team of DAYU’s Agricultural Water Group resolved all 14 complaints, achieving a 100% resolution rate. Thecompany also conducted satisfaction surveys with 11 village committees, assessing daily operations, problem-solving, response time, andemergency handling - resulting in 100% satisfaction.

Smart Water for AgricultureAs a leading enterprise in the agricultural water conservancy sector, DAYU Irrigation Group embraces the mission of "makingagriculture smarter, making rural areas more beautiful, and making farmers happier." The company responds to the national"Rural Revitalization" strategy, dedicating itself to addressing the "Three Rural Issues" (agriculture, rural areas, and farmers).In this process, the company comprehensively considers the interconnected impacts of agriculture, rural development, andfarmers, and builds diverse solutions centered around "water," actively exploring fields such as digital twins, water-savingirrigation districts, high-standard farmland, river embankments, wastewater treatment, and smart drinking water systems.DAYU aims to optimize water resource allocation, promote water-saving irrigation technologies, and improve rural waterconservancy facilities, ensuring food security and agricultural economic development while supporting ecological protection andenvironmental improvement, ultimately achieving harmonious coexistence between economic, social, and environmental factors.

2024Business Model Innovation

Award First PrizeStandardized + Multi-Tenant" SaaS Product

Service Model

2024Management InnovationMulti-Channel, Multi-Measures,Multi-Dimensional

Building aCustomer Service System

Qanjiao Model

Pu Cheng 1.0

Pu Cheng 2.0

1.0

2.0

DAYU Irrigation has developed a two- and three-dimensional integrated GIS platform (TopMap Earth), creating adigital twin application system that provides precise management tools for both water conservancy and agriculturesectors. In water management, this platform can monitor hydrometeorological data in real time, predict ood risks, andoptimize reservoir dispatch plans, eectively preventing ood disasters and ensuring rational use of water resources. Inagriculture, it provides smart agricultural solutions that enable real-time monitoring of soil, climate, and crop growth,facilitating precision management to improve production eciency and product quality, thereby promoting sustainableagricultural development.The advancement of low-altitude technology has accelerated the development of the low-altitude economy. DAYU'ssubsidiary, Huitu Technology, is leading the way in water conservancy by employing cutting-edge technologies, such asdrone tilt photography, allowing every drop of water and every inch of land to have "digital life." Drone mapping eciencyhas increased by 30%, and real-world modeling costs have dropped by 45%, redening the speed and precision of smartwater management, making what was once unthinkable now part of everyday practice.In specific applications, DAYU has innovatively integrated modern irrigation digital twin scenarios with businessapplications, making the Litu District irrigation digital twin platform a daily operational and management tool for overallirrigation scheduling and the cooperative sub-districts. This highlights the platform's role in visualizing, controlling, andassisting decision-making.

Case - Digital Twin

Digital twin irrigation district

In 2024, Dayu Water Conservation will deepen its “customer-centered” serviceconcept and focus on meeting customer needs and improving project quality.We have established a comprehensive customer service system, embeddingcustomer service in all open windows through the opening of the 400 hotline, thepublic number, the ocial website, the enterprise microblogging platform, andother platforms. At the same time, we have opened the rst outbound return visitsurvey for homeowners, and have completed the “Dayu Water Conservation”outbound call labeling, so that problems can be identified and resolved ina closed-loop management process that covers the entire cycle of pre-salesinquiries, complaint handling, regular return visits, and process tracking untilcompletion. Through closed-loop management of the entire cycle of pre-salesinquiries, complaint handling, regular return visits, and tracking of processmatters until completion, we nip problems in the bud and take timely andeective measures to resolve them, avoiding adverse impacts on the company.

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In the Dianchi Lake Basin in Jinning District, DAYU adopted an integrated "Three-Waters Joint Governance" approach,utilizing existing water systems and reservoirs to create a cycle of agricultural tailwater, initial rainwater, domesticwastewater, treated effluent, and efficient water-saving pipelines. This project effectively reduced and improvedagricultural water pollution’s impact on Dianchi Lake, while collecting and reusing water to save 2,599.75 m? of waterannually and generate an economic benet of 51.995 million RMB.

In Jiande City, where there are three provincial-level rivers—Xin'anjiang,Lanjiang, and Fuchunjiang—flooding during the rainy season severelythreatens residents' safety and causes significant economic damage.DAYU implemented various measures to enhance ood control, includingthe construction of new embankments and the reinforcement of existingones. These efforts ensured the flood control capacity of the Dayangsection met the 1-in-20-year ood protection standard. The project alsoinnovated the development of a multi-functional framework embankmentstructure and a rapid assembly and disassembly dry dam structure,achieving dual functions of ood prevention and road passage in limitedspaces. Furthermore, commercial development within the embankmentarea led to the creation of over 140 commercial outlets, contributing tothe regional prosperity and establishing a model for a “happy river” anda demonstration area for common prosperity.

In Wuwei City's Liangzhou District, DAYU designed an innovative otation and sedimentation process combined with anair otation sedimentation tank to address the challenges posed by seasonal water quality changes. This new processeciently saves land and construction costs while exibly switching operation modes to meet varying water qualityconditions. It achieved a 96.9% algae removal rate and a 98.5% turbidity removal rate, signicantly enhancing waterquality treatment. The project also implemented a dierentiated treatment plan for production wastewater, ensuringthat dewatered sludge had a moisture content below 70%, meeting environmental standards. This innovative designnot only met ve-star water purication facility but also ensured compliance with urban water supply and drinkingwater hygiene standards, provides a strong safeguard for rural water safety and public health.

DAYU has modernized 5,000 acres of farmland in the Tai-tou Town projectdemonstration area. By integrating modern information technologies, automatedequipment, intelligent control systems, and precision agriculture techniques, DAYUhas upgraded traditional agricultural practices to enhance planting efficiency,resource utilization, and product quality while reducing labor intensity. Thistransformation also ensures an environmentally friendly, sustainable agriculturalproduction model.

DAYU has implemented a modern irrigation district project in Qihe County, driving comprehensive agricultural waterprice reforms. This initiative significantly improved the quality and efficiency of farmland irrigation facilities, whileenhancing the overall eciency of water resource utilization. These eorts provide a solid foundation for increasing cropyields, boosting agricultural profitability, and raising farmers' incomes. Additionally, DAYU has promoted widespreadinvolvement from local governments, communities, and the public in the construction and management of the project,ensuring mutual benets for all participants.

Case - Wastewater TreatmentCase - River Embankments

Case - Smart Drinking Water Systems

Case - High-Standard Farmland Renovation

Case - Water-Saving Irrigation Districts

Generate an economicbenet of

million RMB

51.995

Modern irrigation district project in Qihe County

Multi-Functional Framework

Embankment Structure

Water Treatment Plant Design Render

Algae removal rate

Turbidity removal rate

96.9%

98.5%

Year-round major information security accidentsconstruction Jiande whole area happy river,create common wealth demonstration areawater conservancy prototype.

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CollaborativeWin-Win, IndustryCo-Building

As an industry leader, DAYU actively takes on the responsibility of industrydevelopment by closely collaborating with upstream and downstream partners,as well as multiple research institutions and universities, to promote technologicalinnovation and application in the sector.Research ProjectCooperation

Industry Standard Formulation

Industry Advocacy and Exchange

DAYU plays a key role in many national-level key projects, using cutting-edgetechnologies like clean energy and 5G to respond to the needs of moderndevelopment. These efforts have resulted in major research and applications inareas such as water-saving and pressure-extraction, and intelligent irrigation,greatly enhancing its R&D capabilities and providing practical solutions forindustry-wide challenges.

In 2024, as an industry leader, DAYU actively pushed for the standardization of agricultural water-saving technologies. Thecompany led the formulation of the national standardAgricultural Water-Saving Irrigation Equipment Part 7: Plastic Valves forMicro-Irrigation(GB/T 19812.7-2024) and participated in the formulation of theWater-Fertilizer Integration Equipment(GB/T43908-2024). These eorts not only reinforce DAYU’s leadership in water-saving technology but also lay a solid foundation forthe sustainable use of water resources and the development of modern agriculture.

DAYU Irrigation Group actively expands domestic and international cooperation projects with government and enterprises, hostsindustry forums, promotes public education, and participates in exhibitions to lead a new era in China’s water-saving development.The company continues to amplify its advantages as a full-industry-chain systems integrator, sharing successful case studies andapplication models both domestically and internationally. Through premium products and services, DAYU is deeply engaged in anew round of reform and development, contributing its wisdom and strength to the advancement of the industry.In 2024, DAYU made a full-scale entry into international markets and held theChina Water-Saving Forumfor the fourthconsecutive year. With a global perspective, the company promotes the overall development of water-saving initiatives inChina. It signed cooperation agreements with numerous governments and enterprises, including China Gezhouba Group,the People’s Government of Minqin County in Gansu Province, and China Water Aairs Investment Co., Ltd., helping partnersimprove water resource utilization through advanced technologies and experience.The company also promotes public water-saving awareness by setting up displays, distributing brochures, and organizinglectures to explain water-saving technologies and demonstrate their effectiveness, advancing the construction of a water-saving society from all angles.DAYU continues to strengthen its partnerships with renowned universities and research institutions, such as China AgriculturalUniversity, China Institute of Water Resources and Hydropower Research, and Tianjin Agricultural University, advancing thedevelopment of smart irrigation systems and establishing over 10 innovation platforms, including key laboratories andresearch centers for agricultural water-saving equipment. These platforms promote deep collaboration and resource sharing,creating a conducive environment for technological progress and product innovation.

Led National Standard01Participated National Standard02Participated Group Standard03

Agricultural Water - Saving Irrigation Equipment – Part 7: Plastic Valves forMicro - Irrigation (GB/T 19812.7 - 2024)Water - Fertilizer Integration Equipment (GB/T 43908 - 2024)Evaluation Guidelines for Water - Saving Parks (T/CSTE0670 - 2024)Guidelines for Supporting Infrastructure Construction of High - StandardFarmland (T/ZNJX 003 - 2024)Integrated Groundwater Level Gauge T/CHES 130-2024Integrated Tipping Bucket Rain Gauge T/CHES 131-2024

In response to the nationalBelt and RoadInitiative, DAYUestablished its International Business Division to pursuea dual strategy of "going global" and "bringing in" talentand resources. The company continuously explores andoptimizes its international development strategy, activelyengaging in global cooperation to shape its internationalinuence with Chinese wisdom.In September 2024, H.E. Mr. Chanthanet Boualapha,Deputy Minister of Natural Resources and Environmentof Laos, led a delegation to DAYU’s Beijing R&D Center.The two parties had in-depth exchanges on solutionsand products in areas such as agricultural water-saving,digital twin applications, and wastewater treatment.Deputy Minister Boualapha expressed strong interest inestablishing long-term cooperation with DAYU.

Event - International Water-Saving Cooperation and Exchange

Deputy Minister of the Ministry of Natural Resources and

Environment of Laos visits DAYU R&D Center

New Technologies and Equipment for Water - Savingin Over - Exploited Groundwater Areas of North China

Photovoltaic - Based Sprinkler Wireless Controller

High Water - Efficiency Models for Major Grainand Economic Crops in the Hexi Corridor and TheirDemonstration

Smart Irrigation Technology Integration in theNorthwest Arid Areas

Smart Irrigation Technology Integration andDemonstration in Bozhou Area

Improve irrigation water and fertilizer use efficiency,enhance crop yield.

Develop a smart, precise irrigation system using cleanphotovoltaic energy and 5G technology.

Address ecological and agricultural water conicts in theHexi Corridor through high - eciency irrigation and multi- process coupling.

Use IoT, big data, and sensors to explore smart irrigationmodels, building demonstration areas for application.

Solve water supply and demand mismatches in the YellowRiver - Huaihe region, improve irrigation eciency.

Project TitleProject Goal

A list of industrial standards in 2024

Key National R&D Projects

Society – Leading in Smart Water, Sharing Responsibility TogetherSociety – Leading in Smart Water, Sharing Responsibility TogetherDAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report

The 4th China Water-Conservation Forum, 2024

Chairman Wang Haoyu presents keynote report: “Channeling Market Vitality to Irrigate Millions of Acres Across China”

Talent Creates the FutureTalent is the core driving force behind enterprise development and industry transformation. DAYU Irrigation Group focuses onsafeguarding employee rights, strengthening foundations by optimizing compensation and benets, regulating labor systems,and creating a safe working environment through health training and safety measures. To promote career development, thecompany builds promotion channels and oers diverse training programs to support employees’ growth.Safeguarding Employee RightsDAYU regards the protection of employee rights as a core element of its development and is committed to creating a fair, just,transparent, and people-centric work environment. The company strictly adheres to theLabor Law of the People's Republicof China,Labor Contract Law of the People's Republic of China, and other national regulations, establishing clear internalmanagement systems for recruitment, employment, and compensation. This creates an equitable and transparent humanresources system, oering every employee equal opportunities for development.DAYU upholds theLaw on the Protection of Minors, theProhibition of Child Labor Regulations, and theUniversal Declarationof Human Rights, ensuring that labor practices comply with legal standards and are free from child labor and forced labor.The company promotes a culture of diversity, equality, and inclusiveness, ensuring no discrimination based on gender, age,ethnicity, or any other factor during recruitment, job placement, or employment processes.

To achieve sustainable development alongside the company and attract and retain top talent, DAYU has developed a "Co-creation, Sharing, and Co-responsibility" partnership model, creating aCareer Partner Management Systemthat outlinesmanagement mechanisms for entry, operation, and exit. The company follows the philosophy of "prioritizing those who strive,"and has established comprehensive, competitive compensation and benets systems, such asEquity Incentive SystemsandSalary Management Measures. Performance bonuses are closely linked to business results, promoting individual motivationand creativity while avoiding egalitarianism. The company provides social insurance and housing provident funds, in additionto commercial insurance, addressing employees’ concerns.

Total employees

Labor contract signing rate

Newly employeed

Social insurance coverage

2,795

100%

100%

Female

Over 50

Directors, Supervisors,and SeniorManagementUnder 30

Mid-level managers

Full-time

2,795Male

30–50 years

Regular

employees

Part-time

2,066

1,976

2,286

Employeestatisticsbreakdown by

gender

Employeestatisticsbreakdown byage

Employeestatisticsbreakdown byposition

Employeestatisticsbreakdown byemployment type

In November 2024, the 4th China Water-Conservation Forum, hosted by the Central Committee of the Chinese Peasantsand Workers Democratic Party and initiated by DAYU Irrigation Group, was held in Jinan, Shandong. Themed WaterConservation and High-Quality Development in the Yellow River Basin, the forum brought together more than 1,000representatives from government agencies, research institutions, universities, and the business community to explorethe development and future of China’s water-saving sector.The forum featured ve major sub-topics:

Water Conservation, Ecological Protection, and High-Quality DevelopmentWater Conservation and the “Dual Approach”Water Conservation and Food SecurityWater Conservation and New Quality Productive ForcesAccelerating the Development of the Water-Conservation Industry to Promote Green Transformation in ShandongThese discussions covered the latest concepts and technologies in water saving and aligned with key national strategiessuch as ecological protection and food security. They fostered deep dialogue and intellectual exchange amongparticipants, generating strategic ideas for the high-quality development of the water-saving industry and relatedecological agriculture sectors.The forum also provided a valuable platform for policymakers, promoted the improvement of relevant policies, andfacilitated project investment through a major water aairs project showcase and contract signing session. Additionally,the event had a broad social impact, raising public awareness of water conservation and strengthening the foundationfor social participation and consensus-building in the water-saving movement.

Event - The 4th China Water-Conservation Forum

Society – Leading in Smart Water, Sharing Responsibility TogetherSociety – Leading in Smart Water, Sharing Responsibility TogetherDAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report

DAYU promotes employee participation through democratic processes. The company signs various agreements such as theCollectiveContract,Wage Collective Agreement,Women's Rights Protection Agreement, andOccupational Safety and Health Agreement,safeguarding employees' rights. To facilitate communication, regular meetings like theEmployee Representative Congressare held.The company encourages employees to actively contribute ideas and suggestions for business improvement. Furthermore, DAYUorganizes multiple communication channels, such asChairman's Reception Day,Star Lecturer Seminars, andChairman's ResearchActivities, ensuring open dialogue between employees and management.

DAYU is committed to cultivating a diverse, equal, and inclusive cultural environment. The company actively supports the careerdevelopment of female employees and promotes their self-expression and excellence in the workplace. For pregnant andbreastfeeding employees, DAYU provides facilities like nursing rooms to ensure a supportive work environment.In 2024, duringSafety Production Month, DAYU’s union, in collaboration with the district’s union and municipal workers'hospital, organized free health checkups for 169 frontline employees. The union coordinated with the hospital to bringprofessional equipment to the company, minimizing the impact on employees' work schedules. The checkup coveredover 60 items, including internal and external examinations and blood tests. This initiative enhanced employee well-being and reinforced their sense of belonging.

On November 8, 2024, DAYU hosted its rstChairman’s Reception Dayat the Beijing R&D Center. This event aimed tobuild a direct communication bridge between leadership and employees, fostering an understanding of the frontlineworkforce’s needs and ideas. The chairman listened attentively to each employee's comments and discussed solutions,incorporating valuable suggestions into the company’s future reforms.

On March 8, 2024, the company’s union and human resources department organized the"Beautiful Goddesses,Charming and Flourishing"creative dumpling-making event for over 600 female employees. The event featured variousfun activities, fostering teamwork, creativity, and cultural exchange, enhancing employees' sense of belonging and teamcohesion. This initiative also demonstrates DAYU’s commitment to promoting gender equality and social progress.

Case - Union Organizes Health Checkup for Frontline Employees

Case - Chairman’s Reception Day for Direct Employee Feedback

Case - Celebrating International Women’s Day

Health Checkup

Chairman's Interview"Beautiful Goddesses, Charming and Flourishing"

Society – Leading in Smart Water, Sharing Responsibility TogetherSociety – Leading in Smart Water, Sharing Responsibility TogetherDAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report

DAYU also values employees’ mental and cultural well-being, organizing team-building events and celebratory activities such asbirthday parties, safety knowledge competitions, and Women's Day events to foster communication and emotional bonds betweencolleagues. Additionally, to ensure work-life balance, the company provides employees with access to a fitness center, billiardtables, and dormitories, as well as regular welfare distribution of agricultural products to show appreciation for their contributions.

During the 2024 National Day holiday, DAYU leadership visited several frontline projects, including the Jinning, YuanmouPhase II, Panzhihua, and Niululing projects, to provide guidance and support. The President acknowledged the hard workof employees, emphasizing the importance of delivering high-quality projects. These visits were greatly appreciated byfrontline workers, further motivating them to contribute to the company’s development.

In early 2024, DAYU hosted theHainan Annual Series Event, themed"Gathering Strength, Facing Challenges Together;Advancing with Determination, Moving Forward Condently; Uniting Hearts, Creating a Brilliant Chapter". Employeesfrom all departments gathered in Hainan for a rich array of activities, including a welcome dinner, team-building,project sharing, training sessions, and year-end award ceremonies. Participants also visited key landmarks, such as theWenchang Satellite Launch Center and the Hainan Niululing Irrigation District, fostering collaboration and clarifyingbusiness goals for the year ahead.This event strengthened teamwork and laid a solid foundation for the company’s continued growth.

The company established theDAYU Care Fundto promote a culture of mutual support and compassion, enhancingteam cohesion. This fund provides assistance for employees in need due to major illnesses, children's education, familydiculties, and signicant nancial losses. In 2024, the fund allocated 385,000 RMB to support medical treatment foremployees and their parents, as well as educational aid for children. Over the past decade, the fund has disbursed atotal of 1.6 million RMB, beneting nearly 50 individuals.

Case - Care for Frontline Employees – Building the Foundation of Corporate Development

Case - Hainan Annual Series Event (2024)

Case - DAYU Care Fund – Providing a Warm Safety Net for Employees

Visit to Jinning and Yuanmou Phase II Projects

Hainan Annual Series Event

Employee Welfare Subsidies

Funeral andBurial Pensions

Age Allowance

Holiday Welfare

NewlywedAllowanceMaternity LeaveAllowance

Title Subsidies

Commission Bonus

Construction SiteAllowance

Society – Leading in Smart Water, Sharing Responsibility TogetherSociety – Leading in Smart Water, Sharing Responsibility Together

DAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report

ProtectingOccupationalHealth

The health and safety of employees are critical to the success of any organization.DAYU Irrigation Group prioritizes the well-being of its employees, implementinga comprehensive and multi-layered approach to safeguard their occupationalhealth and safety.Health and SafetyManagement System

Health and SafetyProtection Initiatives

The company strictly complies with national laws and regulations, includingtheEmergency Response Law of the People's Republic of China,OccupationalHealth and Safety Law of the People's Republic of China, andPrevention andTreatment of Occupational Diseases Law of the People's Republic of China. DAYUhas developed anOccupational Health Management Systemto manage employeehealth systematically and reduce occupational disease risks. The company alsocontinuously updates internal regulations such as theSafety Operating ProceduresCompilation,Safety Production Regulations Compilation, andSafety ManagementProduction Regulations, and has created a2023-2025 Long-Term SafetyProduction Planto provide clear direction and standards for the company’s safetyproduction eorts.DAYU has specially set up a “Safety Supervision Department” to separate theauthority and responsibility of “supervision” and “management” to ensure theprofessionalism and independence of safety management. At the same time, thecompany has set up the Production Safety Committee as the highest decision-making organization for production safety management, with the chairman ofthe board as the director of the committee, who is the rst person responsible forproduction safety and manages and makes decisions together with the executivevice-president, vice-president of engineering, chief engineer, as well as the headsof various departments and project managers. Under the committee, the oce ofproduction safety committee is set up, which is responsible for the daily productionsafety work affairs in collaboration with the Safety Supervision Department,forming an up-and-down linkage and a safety management organization systemwith clear responsibilities, and extending the safety management to the concreteimplementation and carrying out of each project to ensure the safety and health ofthe project construction personnel and the smooth implementation of the project.The company has set up a full-cycle health service guarantee system. Startingfrom the establishment of employee health record les, the company records andtracks the health condition of each employee in detail, provides labor protectionequipment that meets the standards and gives professional guidelines for its useto ensure that the employees can be eectively protected at work. The companyconducts regular occupational health checkups for its employees in accordancewith the regulations, identies health risks and provides medical health guidance.At present, the coverage rate of occupational health checkups has reached 80%,and the number of employees suering from occupational diseases is zero.

The company develops annual training plans and carries out systematic safetytraining to ensure all employees participate. Through professional lectures andcase studies, DAYU promotes the safety culture of "Responsibility Implementation,Strict Adherence to Regulations, Safety First, Joint Prevention, Human-Centered,Respect for Life, Continuous Improvement, and Safe Development." In 2024,the company held 30 safety training sessions covering various fields such asengineering safety, project safety, and production safety. The"Cherish Life, Rescueat Hand"training attracted 1,170 employees and strengthened their awareness ofsafety production through relevant exams.In response to President Xi Jinping’s important instructions on safety production,DAYU organized a series of safety production activities duringSafety ProductionMonth, including legal education, safety knowledge competitions, comprehensivesafety inspections, special investigations into major hazards, and emergencydrills, addressing various dimensions to prevent production accidents andminimize their impact.

ISO 45001:2018 OccupationalHealth and Safety Management

System CerticationThe coverage rate ofoccupational health checkups

Employees suering fromoccupational diseases

80%

Provision of labor protectionequipment and guidelines

Optimization of supplementaryhealth insurance for employees

Establishment of employeehealth record les

Regular occupationalhealth check-ups

Full-cycle healthprotection

employees

Safety training sessions

The"Cherish Life, Rescue at Hand"

training attracted

1,170

In 2024, DAYU Irrigation Group initiated safety mutual inspections as part of its annual safety management goals. OnApril 25, 2024, a safety inspection team composed of personnel from various departments visited project sites andproduction lines to check on safety measures, equipment operation, re safety, electrical safety, and more. The teamalso reviewed employee safety training and adherence to safety protocols. After identifying any issues, the inspectionteam worked with relevant departments to develop corrective measures, assign responsibilities, and set deadlinesfor improvements. These safety mutual inspections helped address hidden dangers, promoted interdepartmentalcollaboration, and improved overall safety management.

In June 2024, the Safety Supervision Department of DAYU’s Agriculture and Water Group hosted aSafety ProductionStandardization Exchange Eventin line with theSafety Production Monthactivities. Over 20 leaders from variousproject management departments participated. The event showcased standardized practices for construction layout,safety protection, temporary electrical systems, etc., which eectively improved participants' understanding of safetyproduction standards, laying the groundwork for enhancing the company's safety production standardization eorts.

Case - Conducting Safety Mutual Inspections to Improve Safety Management

Case - Standardizing Safety Production

Corrective Actions Meeting

Safety Education

On-Site Inspection

Management Experience Sharing

Society – Leading in Smart Water, Sharing Responsibility TogetherSociety – Leading in Smart Water, Sharing Responsibility TogetherDAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report

Supporting EmployeeDevelopment

Talent is the core driving force behind enterprise development. DAYU creates adual career development channel—management track (M) and professional track(P)—providing employees with opportunities for upward mobility. Employees canachieve vertical career growth through internal promotions, and the company alsoprovides horizontal cross-track development opportunities based on professionalcapabilities or job competence assessments.In talent selection and development, DAYU supports internal training andpromotion, offering employees broad career development opportunities. At thesame time, the company supplements its workforce by recruiting external talents,bringing fresh perspectives and vitality to the business. To help employeesunderstand their work performance and development trajectory, DAYU hasestablished a comprehensive performance evaluation system, including quarterlyassessments and value-based evaluations. It also claries performance feedbackand appeals processes, motivating employees to continually improve their skills.

To ensure systematic and professional training, DAYU has developed theTraining Management Measuresand other internaldocuments, providing a solid foundation for training activities. The company has built and continuously improved its trainingsystem, dening organizational structures, responsibilities, training plans, and management for both internal and externalinstructors. This ensures that training is both scientic and professional.DAYU has established its ownDAYU Academy, oering systematic courses to provide comprehensive training for employees.The academy customizes training programs based on the characteristics and career needs of employees, closely aligning withtheir career development plans. This not only helps employees improve their professional skills but also fosters a culture ofcontinuous learning and innovation, enhancing the company’s core competitiveness.

A Mentorship System helps new employees quickly familiarize themselveswith the corporate environment and establish interpersonal connections.A regular internal and external expert training system helps improvebusiness skills.Encouragement for employees to obtain professional titles and continuousdevelopment of technical skills through industry - academic collaboration.Opportunities for external exchange and learning in universities andenterprises to enhance managerial abilities.

New EmployeesBusiness Personnel

Professional Technical Talents

Management Personnel

To enhance employee safety awareness, DAYU hosted a"Everyone Talks Safety, Everyone Knows Emergency – Openingthe Life Channel"themed safety knowledge competition in Tianjin on June 14, 2024. Six teams from dierent businesssectors participated, covering essential safety production regulations and emergency response measures. Thecompetition featured multiple rounds, including compulsory questions, identifying safety hazards, quick-responsequestions, and practical skills. The event encouraged learning through competition and reinforced safety awarenessamong employees, building a solid foundation for the company’s safety production.

Case - Safety Knowledge Competition to Strengthen Safety

Safety Knowledge Challenge Section

Safety Knowledge Competition

Number of employees regularlyundergoing performance and careerdevelopment assessments2,730

Society – Leading in Smart Water, Sharing Responsibility TogetherSociety – Leading in Smart Water, Sharing Responsibility TogetherDAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report

To meet the diverse learning needs of employees, DAYU combines both online and offline training formats, integratinginternal and external resources. Each business sector has its own online live-streaming platform, offering specializedtraining courses. For example, theAgricultural Water Lecture Hallin the Agricultural Water Sector and theHuitu TechnologyLecture Hallfocus on cutting-edge knowledge and practical skills in their respective elds, ensuring that employees stayupdated with the latest industry developments.

In 2024, the company organized a series of specialized training events offline, covering annual training for senior andmid-level managers, strategic training for senior and mid-level managers, on-site training for performance feedback anddiscussions, as well as marketing model innovation training in Meijiang, Jiangxi. These training events comprehensivelycovered employees at dierent levels and positions, helping employees enhance their knowledge and skills.

95.5%

82,000

30.00

Employee TrainingCoverage Rate

Total Training Hours forEmployees

hoursAverage Training Hours perEmployee

hours

Senior ManagementAverage Training Hours

Average percentage of employees trained by grade

Average training hours of employees by grade

Mid - LevelManagement AverageTraining Hours

General EmployeeAverage TrainingHours

33.55

30.56

48.96

Senior Management

Training Coverage

Mid - LevelManagement TrainingCoverage

General EmployeeTraining Coverage

100%100%90%

The ability of managers plays a critical role inthe eciency of teams. Therefore, on November27, 2024, the Human Resources Departmentheld a training session on “PerformanceFeedback and Coaching for Managers.” Thistraining, conducted both in-person and online,reached all employees in the group.The core focus of the training was onperformance feedback and coaching. Trainersshared the "Three-Step Feedback Method,"which provides clear feedback from the aspectsof behavior, specific examples, and results.They also introduced coaching techniques,encouraging managers to motivate employees'inner drive. The GROW coaching model, whichinvolves setting Goals, understanding Reality,offering Options, and deciding on the NextSteps, was also a key part of the training,providing managers with a scientic coachingprocess. This training promoted the company'smanagement philosophy and helped thecompany move forward steadily in marketcompetition.

In order to enhance employee capabilities, DAYUEquipment Development Group held a specializedbusiness skills training from November 4 to 15,2024. This training invited international expertJosh Spector to share cutting-edge concepts andpractical skills. The training covered project design,sales techniques, and supply chain management,among other aspects. The trainers used case studiesand interactive teaching to help employees masterknowledge and skills while offering developmentsuggestions that aligned with the company'spractical situation. After this training, employeesnot only learned valuable professional knowledgeand practical skills, but also applied what they hadlearned to their daily work, improving businesscapabilities and work efficiency, ultimatelyenhancing the company's competitiveness.

Case - Specialized Manager Training, Eectively Improving Team Eciency

Case - Business Skill Enhancement Training, Driving Sustainable Development

Managers Training

Irrigation Seminar

Society – Leading in Smart Water, Sharing Responsibility TogetherSociety – Leading in Smart Water, Sharing Responsibility Together

DAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report

DAYU continues to host theDAYU Night Talksseries of training sessions, inviting both internal lecturers and external expertsto deliver courses on a wide range of topics, including legal knowledge, business model introductions, digital twins,business etiquette, career skills, communication methods, and more. This diverse curriculum meets employees' learningneeds in various elds, helping employees broaden their knowledge and enhance their overall competencies.

"Helping Rural Students in Need"Public Welfare Activity Certicate

Public Welfare toPromote RuralRevitalization

In addition to pursuing corporate development, DAYU Irrigation Group activelyparticipates in social welfare causes, fullling its corporate responsibility throughconcrete actions. The company has established aDonation Management Measuresand has steadily advanced its public welfare endeavors to ensure that everydonation is accurately and eciently used. In 2024, the company donated a totalof 10.285 million yuan to charity.Supporting PublicWelfare

The company remains committed to giving back to society, embodying theresponsibility of “taking from society, giving back to society” through its actions.In August 2024, the company’s trade union actively participated in the"HelpingRural Students in Need"public welfare activity, providing care packages to 50students in difficulty from Tongwei County, Gansu Province. In July, the unionorganized 380 volunteers from its Tianjin-based units to participate in the"SameDream Charity Fund"of the China Rural Development Foundation, donating 817care packages to struggling families in mountainous areas.

Provided care packages to

Donated care packages tostruggling families in mountainousareas

students

DAYU Irrigation Group uses theDAYU Night Talksinnovative training platform to launch the"DAYU Star Lecturer"onlinetraining activity, now in its 36th session. Based on weekly live-streamed events and combined with online voting, apanel of judges evaluates the performance of lecturers in terms of explanation ability, teaching attitude, skills, employeefeedback, and case sharing. Outstanding star lecturers are then selected.Lecturers from dierent elds impart professional knowledge and practical experience, helping employees expand theirknowledge boundaries and improve their overall competencies. As cultural ambassadors of the company, these starlecturers integrate the company's values and mission into their courses, enhancing employees' sense of identity andbelonging to the company while learning new skills, thus strengthening the corporate development synergy.

On June 20, 2024, DAYU Irrigation Group held the donation ceremony for theDunhuang Overseas Cultural Relics DigitalRestoration Fund. As the rst company in Jiuquan to donate to this specialized fund, DAYU showed its commitment topreserving cultural heritage. Culture is the soul of a nation, and relics are historical witnesses. This donation reectsDAYU’s dedication to preserving Dunhuang’s cultural legacy. The company hopes this action will inspire more socialforces to engage in the protection of cultural heritage, helping safeguard China’s invaluable cultural heritage.

On January 5, 2024, the company’s union issued a"Blood Donation for a Sick Mother"initiative, and employees in Tianjinactively responded. The rst group of 20 volunteers, along with colleagues from the Audit and Inspection Center, went tothe blood donation station. Volunteers cooperated smoothly, showcasing discipline and a sense of social responsibility.Employees who couldn’t participate prepared nutritional products to support the logistics. After the blood donation, thevolunteers returned proudly, reecting the company’s care for its employees and commitment to social responsibility,while also boosting the sense of unity within the team.

Case - "DAYU Star Lecturers" Empowerment Training, Driving Corporate Innovation

Case - Cultural Heritage Preservation, Assisting with the Digital Restoration of Relics

Case - Organizing Blood Donation, Spreading Hope with Love"DAYU Star Lecturer" Award Ceremony

Dunhuang Cultural Relics Digital Restoration Fund Donation Ceremony

Blood Donation

Society – Leading in Smart Water, Sharing Responsibility TogetherSociety – Leading in Smart Water, Sharing Responsibility TogetherDAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report

On December 18, 2023, a 6.2-magnitude earthquake severely damaged the water infrastructure in Jishishan County. DAYUIrrigation Group quickly took action and fully committed to the post-disaster reconstruction of water supply facilities.The project, with a total investment of 102 million yuan, includes the construction of a new regulating reservoir, a watertreatment plant with a capacity of 9,000m?/d, and the installation of 13 water supply pipelines for relocation sites. Theconstruction team worked around the clock, using a “day and night” mode, with over 60 machines and 300 workers. Thecompleted project not only improved sewage treatment capacity but also brought more convenient living conditions toresidents. DAYU’s actions during the post-earthquake reconstruction in Jishishan reinforced the water security infrastructureand became a heartwarming public project.

Case - Rebuilding Jishishan, Safeguarding the Lifeline of Water

Supporting Educational Development

Ensuring Safe Water Use

DAYU Irrigation Group has always demonstrated a high sense of social responsibility and actively contributes to thedevelopment of education. Through nancial and material donations, the company strives to improve the infrastructure ofschools in impoverished areas, providing better learning conditions for students.The company has set up theDAYU ScholarshipandDAYU Assistance Fundto encourage students who are academicallyoutstanding but face nancial diculties, motivating them to persist in their studies and achieve their dreams. In addition, thecompany invites university students and faculty to visit the headquarters to experience the charm of water-saving technologyand understand the importance of water conservation. In 2024, the company donated a total of XX yuan to educational causes.

Water is the source of life, and ensuring safe drinking water in rural areas is a matter of people's livelihood and well-being. Thecompany actively responds to the Rural Revitalization Strategy by deeply integrating its expertise in smart water services withrural drinking water safety projects, contributing to solving rural water problems with "DAYU wisdom." ThePengyang Modelforrural drinking water projects in Pengyang County, Ningxia, exemplies a new "investment, construction, management, service"model that integrates the internet with rural water supply. Through the use of internet technology, the rural water supplysystem has been intelligently managed and monitored, improving the stability and safety of water supply.

Project Site

On September 4, 2024, over 70 teachers and students from the College of Water Resources and Civil Engineering at ChinaAgricultural University visited the DAYU Irrigation Group headquarters in Tianjin to explore the company’s innovativedevelopment. The students toured various facilities such as the Eco-Environmental Operation Scheduling Center, WaterButler Operation Scheduling Center, and Smart Water Meter Workshops, learning about the leap from traditional waterconservancy to modern intelligent water-saving technologies.From smart water meter remote monitoring to automated irrigation system controls and the application of big datain water resource management, a series of advanced technologies were displayed, offering students a glimpse intothe future of smart water conservancy. This collaboration between industry and academia strengthens the connectionbetween education and industry development, promoting both progress.

Case - Industry-Academia Collaboration

China Agricultural University Visiting DAYUVisiting On-site

a donation to China Agricultural University to supportresearch and talent cultivation.On April 2, 2024,

a donation to Linshui Central Primary School to improvethe teaching environment.On May 30, 2024,

a DAYU Scholarship was issued to Jiuquan High Schoolstudents to support their development.On June 5, 2024,

a donation to Xingguo Pingchuan Middle School inGanzhou, Jiangxi to promote the school’s development.On July 1, 2024,

a donation to Gansu Agricultural University to strengthenindustry-academia collaboration.On December 11, 2024,

Apr

May

Jun

Jul

Dec

Governance - Clear Waters and Steady Progress TogetherGovernance - Clear Waters and Steady Progress Together

DAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report7071

Clear Waters and

Steady Progress

Together

TopicDouble Materiality Level

disclosed announcements and backup documents

investor activities conducted

internal audits completed

anti-corruption training sessions, covering3,243participants

100%coverage of business ethics and anti-corruption training

100%compliance rate for suppliers

100%of new suppliers screened using environmental evaluation criteria

Corresponding SDG Goals

2024 Highlights in this Chapter

Corporate GovernanceRisk ManagementCompliance OperationsBusiness Ethics & Anti - corruptionStakeholder CommunicationDue Diligence

Medium ImportanceMedium ImportanceMedium ImportanceMedium ImportanceMedium ImportanceMedium Importance

ReducedInequalities

Peace, Justice, andStrong Institutions

Partnershipsfor the Goals

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DAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report7273

Standardizing Corporate GovernanceCompliance Operations

The company continuously improves its corporate governance system, establishing a sound internal control framework and

strictly adhering to laws and regulations, such as theCompany Law of the People's Republic of China, Securities Law of the

People's Republic of China,Corporate Governance Code for Listed Companies, andSelf-Disciplinary Regulatory Guidelines No.

2 for Listed Companies on the Shenzhen Stock Exchange – The Code of Conduct for GEM Listed Companies (2023 Revision),

among other regulatory documents. A clear and efficient governance structure has been built, encompassing the general

meeting of shareholders, the board of directors and its committees, the supervisory board, and the management team. At

the same time, the company continues to optimize the rules for the general meeting, board meetings, and supervisory board

operations, as well as the procedures for independent directors to ensure the company remains compliant in its operations.

DAYU Irrigation places great importance on compliance system management,adhering to the principles of "openness, fairness, and justice" when conductingbusiness, and carrying out compliance reviews for various investment projectsto ensure the smooth and compliant implementation of major projects. In 2024,the company continued to enhance auditing and monitoring improvements,implementing a joint meeting mechanism to ensure that all business activitiescomply with legal requirements and meet regulatory standards. To raise employeeawareness of compliance, the company held three compliance training sessionsin 2024, adopting a combination of online and oine training methods to provideexible and diverse learning opportunities, helping employees better understandand execute compliance requirements.

Nominating Committee

Board of Directors

Auditing CommitteeStrategic and ESG

Committee

Supervisory Boards

Remuneration andAppraisal Committee

General Shareholders' Meeting

Chairperson and Standing Committee MembersMembersExternal Experts

Professional andTechnical Personnel

Investment

DecisionCommittee

Agricultural Water Business Management Line

Determined based on the composition of the Group's StrategicAdvisory Committee

Technical and Professional Support Line

Group Functional Departments

Project Management and Operations LineBusiness and Regional Lines

Legal and regulatorytraining sessions

Post-investmentmanagement reports

Preliminary review meetings(DingTalk/phone)

Risk reminder letters issued

Investment Committeemeetings (DingTalk/phone)

On-site post-investmentinspections

Post-investment follow-upmeetings (DingTalk/phone)

Risk warning letters issued

To regulate investment decision-making and improve investment eciency, while eectively preventing investment-relatedrisks, the company established a Strategic Investment Department in 2024. Based on theArticles of Association of DAYUIrrigation Group, an Investment Decision Committee (referred to as the "Investment Committee") was established. Thecompany also developed theRules of Procedure for the Investment Decision Committee of DAYU Irrigation Group, continuouslyoptimizing the investment decision-making process. The Investment Committee is a standing body within the group, with theRisk Control Department of the Group serving as the committee oce, handling the daily operations of the committee andreviewing investment projects and other decision-making processes within the group.Through the Strategic Investment Department, DAYU Irrigation established "marketing-style scanning mechanisms for key focusareas," "graded management mechanisms for potential investment targets," and "internal coordination mechanisms" in 2024.Key investment areas included the hydropower survey and design institute, pan-operation elds, advanced manufacturing,information sectors, and seven other areas of focus. Three asset/equity disposal projects were completed, and an inventory of93 potential investment targets was established and tracked, with research conducted on 38 targets and 22 land parcels.

Preliminary ReviewMeeting

Post-Investment ProjectManagement

Investment DecisionMeeting

Supervision andImplementation

? Evaluate whether the project aligns with the Group’s strategic developmentplan and business focus? Identify project risks, propose risk control measures and implementationsuggestions

? All projects approved by the Investment Committee or as required by theChairperson must undergo full-process post-investment management

? Proposal acceptance? Convening the Investment Committee meeting? Project pre-investment approval procedures

? Establish sound supervision and execution policies. Units and individualsresponsible for failing to conduct proper reviews or implementation shall besubject to necessary penalties

Conduct compliance training activities

Establishment of a pool of potentialinvestment targets and tracking andmanagement of targets

Sessions

Cases

Governance - Clear Waters and Steady Progress TogetherGovernance - Clear Waters and Steady Progress TogetherDAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report7475

Risk Management

The company continuously follows the Audit Law of the People's Republic of China, Chinese Internal Audit Standards, andother relevant laws and regulations, and has developedthe Internal Audit Management Measures. Adhering to the approachof "horizontal coverage, vertical depth, and special reinforcement," the company identies issues in a timely manner, preventsrisks, and effectively supervises daily management, key projects, and major projects, providing strong support for thecompany’s operations.In 2024, the company continued to improve risk control processes, enhance risk management capabilities, and revisedseveral rules and regulations, including the "Investment Decision Committee Meeting Rules," "Post-Investment ManagementMeasures," "Legal Entity Management Measures," "Contract Management Measures," "Legal Dispute Management Measures,"and "Engineering Project Subcontracting Management Measures," ensuring risk management responsibilities are implementedand supporting the company’s stable operations.

The company refers to theInternal Control Process for Listed Companiesof the Shenzhen Stock Exchange, establishing normsfor risk control systems. It denes the roles of the Board of Directors, Audit Committee, Supervisory Board, and managementin the internal control structure, integrating risk management processes across all management operations to ensure thecompany's operations are compliant and safe.According to the arrangements and deployments of the 2024 work meeting, the Group's Risk Control Department led theestablishment and improvement of risk control mechanisms across all departments and business lines. The Group compiledand formedthe Internal Control Manual of DAYU Irrigation Group Co., Ltd., and preliminarily completed the constructionof a comprehensive risk control system. The internal control system involves 15 business lines, including strategy, humanresources, finance, investment, procurement, manufacturing, sales, R&D, engineering, operations, securities, compliance,audit, administration, and information technology. Each business line established an independent risk managementteam, implementing a line responsibility system. A full-chain risk control mechanism from front to back was built, ensuringcomprehensive coverage of business risk management throughout the entire lifecycle.

DAYU established a major project support management mechanism in 2024, to support key projects, including participating ingovernment decision-making and industry acquisitions. This approach achieved good results post-implementation.

Risk Management and Internal Control Audit Process

Risk AreaRisk Mitigation MeasuresProject Investment Risk? Timely revision of the Investment Committee meeting rules to clarify the project decision list

? Thorough preliminary research on projects to ensure the authenticity and comprehensivenessof reports? Review of decision-making proposals and supporting materials, carefully organizingmeetings and incorporating the opinions and suggestions of committee members to supportinvestment decisions? Strengthen post-investment tracking and management, and make adjustments whennecessaryLegal Litigation Risk? Revision of theContract Management Measuresto promote standardized contract review anddaily management? Establish and dynamically update a contract template library to reduce contract disputes dueto unclear terms? Establish a case study and tracking mechanism for major and dicult cases? Problem-oriented approach using typical case analysis for management guidance

Labor Employment Risk? Development of anEmployee Handbook to clarify relevant management requirements? Strengthening employee training, reinforcing corporate core values, and raising riskprevention awarenessDaily OperationalManagement Risk

? Group conducts regular reviews of systems and processes, continuously improvingmechanisms and optimizing workows to enhance risk control in daily operations? Special actions such as quality improvement and field research by Agro-Water Group are

carried out to foster management improvement and eciency? Completed a comprehensive risk management system that covers 413 risk factors across all

business lines, with clear control measures and a completed risk control manual, providing

actionable solutions for the company to implement risk control across all levels.

Investment Decision Committee Meeting Rules

Post-Investment Management MeasuresLegal Entity Management Measures

Contract Management MeasuresLegal Dispute Management MeasuresEngineering Project Subcontracting Management Measures

Determine audit projects, organize audit teams, develop audit plans, denescope and focus, and deliver the "Audit Notication" to the audited unit.Conduct on-site audits, collect audit evidence, and prepare audit workingpapers.Organize audit materials, draft the audit report, solicit opinions from theaudited unit, hold a corrective communication meeting, and send the nalaudit report to the audited unit’s management after approval.Review audit materials, draft the nal report, solicit feedback, hold correctivemeetings, and send the nal report to the audited unit’s management.

Preparation PhaseImplementation PhaseReporting Phase

Follow-up Check PhaseComprehensive risk control system

Conducted

Risk Control Internal Systems List

Strategy

Human resources

Finance

Investment

Procurement

Manufacturing

Sales

R&D

Engineering

Operations

Securities

Compliance

Audit

Administration

Informationtechnology

internal audits

Completedroutine audit reports

Produced

special audit reports

Issuedinspection reports

Governance - Clear Waters and Steady Progress TogetherGovernance - Clear Waters and Steady Progress TogetherDAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report7677

From April to December 2024, the Risk Control Department led the establishment and improvement of risk controlmechanisms across departments and business lines within the Group. TheComprehensive Risk Control ImplementationPlan (Draft)was developed, completing the preliminary construction of the Group’s risk management system. Throughthis, DAYU Irrigation achieved full-chain risk control and established business loop management. This initiative promotedcross-departmental innovation, integrated resources to improve efficiency, fostered a risk management culture, andsimultaneously achieved both economic and social benets, setting an industry benchmark.

Comprehensive Risk Management System Development Project

In 2024, DAYU Irrigation hired external accounting rms to audit the nancials andinternal control systems. A total of 7 subsidiaries were audited for operationalmanagement, 6 special audits were conducted, 45 engineering projects wereaudited, and 15 complaints were investigated. Additionally, the companyassisted in 10 cases related to various types of business and conducted nancialdue diligence on 1 item, participated in 45 bidding supervision sessions, andperformed 11 anti-corruption and integrity training sessions.Furthermore, the legal department reviewed 18,221 contracts, revised 9 contracttemplates, conducted special reviews of 13 contracts, provided 17 instances oflegal support and training, and compiled 13 typical case summaries to guide andassist business departments in compliant operations.

Board Governance

Protecting ShareholderRights

Investor Relations andCommunication

The company is steadfast in safeguarding the legitimate rights of its shareholders, strictlyfollowing the requirements of theRules of Shareholder Meetings of Listed Companies,Articles of Association, andRules of Procedure for Shareholder Meetingsto conveneshareholder meetings in an orderly manner. To ensure that every shareholder canconveniently participate and fully exercise their voting rights, the company adopts a dualapproach of on-site communication and online live streaming for meetings. Adhering tothe principles of “openness, fairness, and justice,” the company focuses on protecting therights of shareholders, especially minority shareholders, such as the rights to propose, vote,and nominate directors, ensuring that shareholders' legal rights are eectively respectedand protected.At the same time, the company is dedicated to advancing the development of securities-related systems. During the reporting period, the company established thePublic OpinionManagement Regulations,Emergency Response Crisis Management Regulations,Environmental, Social and Governance (ESG) Management Regulations,Entrusted FinancialManagement Regulations,Market Value Management Regulations, andAccounting FirmSelection Regulations, to build a comprehensive safeguard system that claries the rightsand obligations of the board of directors and ensures shareholder rights. Furthermore,the company has increased the stock holdings of some directors, supervisors, and seniormanagement, implemented share buyback plans, changed fundraising investment projects,and conducted feasibility studies on REITs, enhancing the ability of minority shareholders tobenet. In 2024, the company distributed cash dividends of 0.60 yuan per 10 shares.The company places a high value on information disclosure, striving to improve thequality and efficiency of disclosure to ensure that the information disclosed is truthful,timely, accurate, and complete. The company strictly adheres to the relevant regulationsof the China Securities Regulatory Commission (CSRC) and the Shenzhen Stock Exchange,ensuring all shareholders have equitable access to the company’s information. Toachieve this, the company designatesChina Securities Journal,Shanghai Securities News,

Securities Times,Securities Daily, andCniwsas the designated newspapers and websitesfor information disclosure, creating an open and transparent communication environmentto comprehensively protect the interests of shareholders. In 2024, the company published556 disclosure announcements and reference documents, with an information disclosureevaluation of B, and a 100% response rate on interactive platforms.The board of directors always adheres to the principles of “truthful, accurate, complete,timely, and fair” information disclosure and focuses on building a transparent andecient communication bridge with investors. Through research, performance briengs,conference calls, media interviews, and interactive platforms, the company activelyresponds to the expectations and concerns of stakeholders, enhancing investors'recognition and trust in the company. The company has held annual performancebriefings for three consecutive years, integrating on-site communication with variousonline live streaming formats, significantly enhancing investors’ understanding of thecompany’s performance and development plans.Additionally, the company closely monitors industry dynamics and public opinion,maintaining positive interactions with investors and focusing on their main concerns.In 2024, the company’s securities department regularly compiled and released investorrelations management reports, maintaining close communication with investors throughvarious channels about the company’s strategic planning, development prospects,industry competition, and daily operations, eectively ensuring investors' right to knowand communication channels.To provide a better experience for investors, the company actively adopts advanced onlineand digital communication tools. Through live interactions, virtual corporate tours, self-media platforms, infographic annual reports, audio-video annual report overviews, andorganizing on-site project visits, the company presents its information in a vivid, visual,and easy-to-understand manner, making it easier for investors to access and understandthe relevant information.

2024Management Innovation

Award Third PrizeInformatization management

platform self-development

project

Public Opinion Management

RegulationsRegulations on Securities-relatedAairs

Environmental, Social and Governance

(ESG) Management Regulations

Market Value Management

Regulations

Emergency Response CrisisManagement Regulations

Entrusted Financial Management

Regulations

Accounting Firm Selection

Regulations

18,221

Audited engineering projectsAudited for subsidiariesoperational management

Reviewed contracts

Provided instances of legalsupport and training

Assisted construction due diligencesessions

Conducted special contract reviews

Participated bidding supervisionsessions

Investigated complaints

Revised contract template

Anti-corruption and integrity training

sessions

Compiled typical case summaries

Audit Department

Legal Department

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DAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report7879

Information Research

National Policies

Analyst Meetings

Media Interviews

Road Shows

Interactive Q&A

RI WechatAccount

CompanyResearch

Counter Road Shows

Conference Calls

EarningsPresentations

InvestorClassication Rate

inputoutput

inputoutput

Orders Tracking

Media OutreachRate

IndustrialTrendings

Instructions andGuidances

Project ProgressBriefsInnovationForwarding

InformationFunnel Library

Value Deep-diveConversation & PresentationDAYU Irrigation Investor Relations Management Process

Supplier Management System

Strengthening Compliance

Optimizing Supply Chain Collaboration

Business Ethics andAnti-corruption

Supply Chain Management System

Adhering to the values of "maintaining our original intentions, knowing theimportance of respect," the company strictly complies with theAnti-MonopolyLaw of the People’s Republic of China,Anti-Unfair Competition Law of thePeople’s Republic of China, and other laws and regulations. By establishing acomprehensive business ethics supervision system, the company continuouslystandardizes business conduct. Additionally, the company has implementedinternal policies such as theCode of Integrity and Self-disciplineand theComplaint Management Systemto regulate employee behavior and prevent andeliminate illegal or unethical conduct.The company continually improves its anti-fraud reporting and complaintmechanism and strengthens business ethics. It encourages and supportsemployees and stakeholders to report violations, misconduct, and actionsdetrimental to the company’s interests or reputation through various channelssuch as phone, email, or mail. The company has established a reward mechanismfor whistleblowers and a protection policy to ensure smooth reporting channels,confidentiality, and the protection of whistleblowers’ identities. In 2024, thecompany received two reports related to business ethics and anti-corruption,immediately investigated the incidents, and dismissed the involved individuals,with a complaint resolution rate of 100%.To enhance employees' awareness of integrity and their ability to preventcorruption, in 2024, DAYU Irrigation conducted 11 anti-corruption warning trainingsessions, covering 3,243 participants.

DAYU Irrigation adheres to the principles of “centralized database, resource sharing, classification and grading, dynamicmanagement” and has formulated internal management measures such as theSupplier Management MeasuresandSupplyChain Company Safety Management Rulesin accordance with relevant national laws and regulations, establishing an ecient andstable supply chain management system to support the company’s sustainable development. In 2024, the company formulated theSupplier Misconduct Management Measuresto optimize the management of supplier misconduct, standardize the managementprocedures, and improve eciency and eectiveness. Simultaneously, by optimizing resource allocation, the company classiedand integrated suppliers, building a supplier database that eectively improves procurement eciency and material quality.DAYU Irrigation follows responsible procurement principles and has developed supplier admission evaluation forms and cooperationevaluation forms. During the supplier admission phase, the company conducts reviews and evaluations to ensure compliance. In2024, the company established theProcurement Communication and Coordination Management Measuresto improve internal andexternal coordination within the company’s procurement department and developed theSingle-source Procurement ManagementMeasures to regulate single-source procurement behaviors.

100%

Business Ethics and Anti-corruptionTraining Coverage Rate:

Average Business Ethics and Anti-corruption Training Hours per Employee:

hours

DAYU Irrigation screened andeliminated

suppliers

2024 Training for integrity reportingRelated regulation processes

The company has established a full lifecycle management system for suppliers,categorizing them into manufacturing, trade, and service types, and strictly screeningand supervising suppliers through the four stages of classification, evaluation,performance review, and freezing/exit to ensure continuous and standardizedsupplier management. The company’s procurement follows the principle of"transparent procurement" and firmly opposes bribery by suppliers. For suppliersviolating social responsibility-related systems, the company will deal with themaccording to regulations and announce the results. In 2024, DAYU Irrigation screenedand eliminated 20 suppliers, blacklisting them and terminating cooperation.

Suppliers are categorized into three major types and17 subtypes based on the nature of their products.Suppliers are selected based on localization criteria,and those who register must sign documents such astheQuality Responsibility CommitmentandIntegrityCommitment, ensuring the authenticity, completeness,and effectiveness of the provided materials. Thecompany conducts follow-ups via letters, phone calls,and meetings to assess suppliers' anti-corruption

The inspection team consists of the ProcurementDivision, relevant business departments and userunits, and conducts on-site inspections of approvedsuppliers to gain a deeper understanding of thesuppliers' organizational structure, managementlevel, and equipment, with a focus on evaluating theproduction environment and credibility dimensions.

Supplier evaluation is categorized into daily evaluation,on-site assessment and annual evaluation, which is anall-round evaluation of suppliers' daily performance,production process, quality control, etc. Suppliers areclassied into four grades, namely, A, B, C, D, accordingto the evaluation results.

Suppliers who violate relevant laws, companyregulations, or contractual agreements are subjectto freezing management; suppliers who arereported as non-compliant by national industrydepartments due to product quality are subject toexit management.

Classication AdmissionEvaluation

ClassicationFreezing and Exit

Governance - Clear Waters and Steady Progress TogetherGovernance - Clear Waters and Steady Progress TogetherDAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report

8081

Supplier Empowerment Training

To enhance the market competitiveness of suppliers and improve cooperation efficiency, DAYU Irrigation attaches greatimportance to targeted empowerment training for suppliers. By organizing special promotion activities and follow-up visits,the company conveys advanced management concepts, innovative business strategies, and comprehensive market dynamicanalyses to suppliers, helping them strengthen their capabilities. Moreover, the company has developed a comprehensivereward mechanism for outstanding suppliers, including prot-sharing, increasing procurement share, public recognition, andoering more cooperation opportunities, to encourage continuous improvement and collaborative development.In 2024, DAYU Irrigation launched the SRM system and organized systematic training for suppliers and internal procurementdepartments. From September 2024, internal business training was initiated and completed by December for suppliers,including system operation manuals, demonstrations, and User Acceptance Testing (UAT). Through the development andrelease of manuals and series of training, DAYU Irrigation claried the specic roles and operational steps for both buyers andsuppliers within the system, improving the standardization and transparency of the company’s procurement processes.

In 2024, DAYU Irrigation continued to adhere to the guidance of Xi Jinping's Thought on Socialism with Chinese Characteristicsfor a New Era. The company remained closely aligned with its core business development, steadily advancing its party buildingeorts. The company focused on leveraging the party organization’s role as a stronghold and the exemplary role of its partymembers, supporting the enterprise’s steady progress in a complex market environment. The DAYU Irrigation Party Committeecurrently has 14 Party branches and 204 formal Party members.The Party Committee is committed to cultivating a team of Party members with strong theoretical knowledge, businesscapabilities, and an innovative spirit. This team aims to showcase firm Party principles, outstanding conduct, and properstyle in the process of achieving the brand goal of "Unity in the Nation, Sharing Nature." In 2024, the company developed 8active members, 17 probationary members, and 3 preparatory Party members, with 3 members ocially becoming full Partymembers after completing their probation period.Simultaneously, the company continues to integrate Party building work with business development, launching the "PartyMember Pioneer Position" initiative. Ten Party members led eorts to overcome technical production challenges and optimizebusiness processes, resulting in an approximately 80% improvement in department work efficiency, contributing to thecompany’s cost reduction and eciency enhancement.For its outstanding contributions to Party building, the company has received numerous honors, including the "NationalAdvanced Grassroots Party Organization" and "Model Grassroots Party Building Point." In June 2024, DAYU Irrigation'ssubsidiary, HuiTu Technology, was awarded the title of Advanced Party Organization in Fengtai District, Beijing.

In 2024, DAYU Irrigation carried out Party building brand activities themed "Unity in the Nation, Sharing Nature" and engagedin various Party building exchanges. The company also actively participated in various Party member development trainingactivities organized by the Jiuquan Economic and Technological Development Zone, in line with the Party Work Committee'swork requirements of "Pioneers Leading the Way · Strengthening Enterprises and Parks." This initiative helped furtherconsolidate and enhance the Party members' brand awareness and service consciousness, contributing to the high-qualitydevelopment of the Development Zone.

SRM System Training

Fengtai District “Two Excellence and One First” Recognition Ceremony

Training Class for Party Organization Secretaries and Party Aairs Cadres of Jiuquan Economic Development Zone(Jiuquan High-tech Zone)

Outstanding Party Work AwardNewly recruited party membersread the oath of joining the party

Speech by the Chairman of the Group

100%

100%

Supplier Compliance Rate:

Percentage of New Suppliers SelectedUsing Environmental Evaluation Criteria:

Party Building Drives Development

On July 1, 2024, DAYU Irrigation held the 103rd Anniversary of the Founding of the Party and the 2024 Mid-Year WorkSummary Conference in Tianjin. The meeting recognized outstanding performers, enrolled new Party members, andreported on work progress by each business division and subsidiary. Company leaders summarized the achievementsand lessons from the rst half of the year, and outlined plans and deployments for the second half. The meeting attractedover 3,000 Party members, cadres, and employees. It emphasized the importance of working with determination, takingresponsibility, and ensuring that the full-year goals and tasks are achieved through practical eorts.

DAYU Irrigation Holds 103rd Anniversary of the Founding of the Party and 2024 Mid-Year Work Summary Conference

Environment - Water Nourishing Ecology, Green Growth for AllEnvironment - Water Nourishing Ecology, Green Growth for AllDAYU Irrigation Group 2024 Sustainability ReportDAYU Irrigation Group 2024 Sustainability Report8283

Consolidating Industry Leadership, Low-altitude Economy Drives DevelopmentAs an industry leader, DAYU Irrigation is committed to rural revitalization, food security,and the management of agricultural water infrastructure. The company has embeddedthe development of new quality productive forces into its business operations, activelyseizing new opportunities brought by industrial transformation and national policyguidance to promote the development of new quality agricultural productive forces.In 2025, for the first time, the Central Document No. 1 will incorporate "low-altitudeeconomy" into the rural revitalization strategy, explicitly supporting the developmentof smart agriculture and expanding applications of technologies such as artificialintelligence, data, and low-altitude technology. We recognize that the low-altitudeeconomy, as a strategic emerging industry, will become a key driving force for thetransformation of agricultural production methods. Therefore, the company has activelystarted making plans by widely applying drones for data collection and extendingapplications to areas such as oblique photography collection, river and channel sectionmeasurement, underwater terrain measurement, laser point cloud collection, and drone-based plant protection. Using drones, we are able to tailor survey plans, effectivelystandardize data formats, improve data accuracy, enhance work eciency, and reduceinvestment costs. In the future, the company will further explore the organic integrationof low-altitude economy and agricultural water saving, combining it with the company’sexisting digital twin platform, equipment, and personnel to build an industrialecosystem and fully explore the potential for development brought by drone technologyapplications.

Future Outlook

Leading Technological Innovation, Collaborative Water Management in Sky and Earth

We understand that the development of new quality agricultural productive forces requires intelligent, precise, and greenagricultural technologies to reduce resource waste and ecological damage, thereby ensuring the stability and sustainabilityof food production. DAYU Irrigation is working to build a "new quality agricultural productive forces" benchmark through acomprehensive articial intelligence technology system and rich information technology scenarios, empowering a new paradigmof smart agriculture. Based on the water-saving artificial intelligence model "Chanshui," DAYU HuiTu Technology successfullydeployed and integrated the DeepSeek AI large model and built a general "Xiao Hui Assistant" localized application, signicantlyimproving prediction accuracy. This, combined with the Digital Twin 3D Visualization Platform and the "Hui Guanjia" smartagriculture platform, allows for precise water resource management and ecient allocation, providing intelligent, full-processmanagement services for agricultural production. Furthermore, DAYU Irrigation is not only focused on managing "surface water"but also looking towards the sky. Through the successful experimentation of the "sound wave rainmaker" in Shaanxi Province, thecompany has created a technological breakthrough to address water scarcity in arid and semi-arid areas, linking water resourcedistribution and ecological environment. This marks a significant step towards "collaborative water management betweenheaven and earth." The company will continue its commitment to technological innovation, leveraging articial intelligence todeepen information technology business scenarios, focus on developing cutting-edge technologies, and lead the developmentof agricultural water-saving solutions with new quality agricultural productive forces.Leveraging Favorable Winds for Global Expansion, Blossoming and Expanding in Multiple RegionsIn recent years, DAYU Irrigation has actively responded to the national "Belt and Road" initiative, continuously exploring newmodels and paths for "going global." The company leverages national policy guidance and actively expands markets in SoutheastAsia, Central Asia, the Middle East and North Africa, Africa, and Europe and the Americas. Furthermore, it has collaborated withKazakhstan National Agricultural Research University and China Agricultural University to jointly establish an ecient water uselaboratory in the desert areas of China and Kazakhstan, building a long-term cooperative platform for top industry talents. Atthe same time, we are responding to the acceleration of domestic major water conservancy projects, working in coordinationwith national trillion-yuan water conservancy investments, actively innovating business models, and leveraging the enterprise'svalue and social capital to contribute to the construction of engineering systems for national small and medium rivers, mountainood disaster control, hydrological infrastructure, and key regional drainage capacity. DAYU Irrigation will further expand "goingglobal" paths and strengthen domestic cooperation and development, helping the Chinese water-saving industry form a newsituation characterized by a solid foundation, smart empowerment, and international expansion.

EnvironmentSocial

MetricsUnit20232024Total Solid Wastetons131.7894.24Total Hazardous Waste Emissionstons1.260.76Total Non-Hazardous Waste Emissionstons130.5291.88Hazardous Waste Densitytons per million revenue0.00040.0002　Non-Hazardous Waste Densitytons per million revenue0.03780.0210Total Recycled Wastetons　/186.14Energy Consumption - Gasolinetons642.81650.00Energy Consumption - Dieseltons18.4619.58Energy Consumption - Natural Gascubic meters13,977.0013,136.67Energy Consumption - Purchased ElectricityMWh17,679.5218,175.58Energy Consumption - Total Energy Consumptiontons of standard coal3,164.138,345.35Energy Consumption Density

tons of standard coal permillion revenue

0.92　1.91

Total Greenhouse Gas Emissionstons of CO

equivalent12,126.6915,756.63Greenhouse Gas Emissions - Scope 1tons of CO

equivalent2,044.065,391.09Greenhouse Gas Emissions - Scope 2tons of CO

equivalent10,082.6310,365.54Water Usagetons92,763.0096,766.00Total Wastewater Dischargetons62,709.6077,412.80Water Usage Densitytons per million revenue26.8722.10Air Emissions - Particulate Matter (PM)tons0.160.26Air Emissions - Non-Methane Total Hydrocarbonstons0.290.448Air Emissions - Volatile Organic Compounds (TVOC)tons5.0610.03Air Emissions - Hydrogen Chloridetons0.271.27Air Emissions - Vinyl Chloridekilograms0.110.16Total Air Pollutant Emissionstons5.7812.16Packaging Material Usagetons378.61597.58Packaging Material Usage Densitytons per million revenue0.10970.1365　Environmental Protection Training Sessionssessions510Environmental Protection Training Durationhours1027Environmental Protection Training Participantsparticipants102157Energy Saving and Emission Reduction Projectsprojects11Environmental Protection Investment10,000 yuan8.05100

MetricsUnit20232024

Total Number of Employeespersons2,8262,795Number of Employees by Gender - Femalepersons689729Number of Employees by Gender - Malepersons2,1372,066Number of Employees by Employment Type - Part-time Employeespersons00Number of Employees by Employment Type - Full-time Employeespersons2,8262,795Number of Employees by Age Group - Under 30persons883733Number of Employees by Age Group - 30-50 yearspersons1,8981,976Number of Employees by Age Group - Over 50persons4586Number of Employees by Position - General Employeespersons2,2882,286Number of Employees by Position - Middle Managementpersons520493Number of Employees by Position - Directors, Supervisors, SeniorManagement

persons1816Number of Middle and Senior Management Employees by Gender- Female

persons98173Number of Middle and Senior Management Employees by Gender- Male

persons437320Percentage of Ethnic Minority Employees%4.77Number of High-end R&D Talents Introducedpersons64Number of Jobs Createdpersons617732Labor Contract Signing Rate%100100Social Insurance Coverage Rate%100100Occupational Health Examination Coverage Rate%8080Total Number of Departurespersons734684Employee Turnover Rate%27.424.28Maternity Leave Days Taken by Female Employeesdays4746,233Return to Work Rate after Maternity Leave for Female Employees%10095Total Training Hours for Employeeshours87,09682,000Average Training Hours per Employeehours3230Average Training Hours for Senior Management Employeeshours33.7233.55Average Training Hours for Middle Management Employeeshours47.9748.96Average Training Hours for General Employeeshours30.1230.56Training Coverage Rate for Employees%90.795.5Training Percentage for Senior Management Employees%100100

Key Performance Metrics

MetricsUnit20232024Training Percentage for Middle Management Employees%100100Training Percentage for General Employees%8990Number of Employees Receiving Regular Performance and CareerDevelopment Assessments

persons2,1892,730Total Cash Donations for Public Welfare10,000 yuan1,108.39649.03R&D Investment10,000 yuan12,337.5512,393.90Number of National Key Scientic Research Projects/Topics/Sub-topics Undertaken or Participated

items913Number of Patents Obtaineditems6136Number of Invention Patents Obtaineditems67　Number of Software Copyrights Obtaineditems1214　Number of National Standards Leditems1　1Number of National Standards Participated initems71　Number of Industry Standards Leditems1/　Number of Industry Standards Participated initems24　Number of Local Standards Leditems1/　　Quality Inspectionstimes49113Supervision Inspections for Projectstimes6522Number of Safety Production Education and Awareness Activitiestimes242Total Number of SuppliersNo.8701,601Total Number of Domestic SuppliersNo.8611,599Total Number of Foreign SuppliersNo.92Percentage of Suppliers with Social Responsibility/SustainableDevelopment Audits

%1250Supplier Compliance Rate%100100Number of Suppliers Who Have Conducted Environmental ImpactAssessments

items53100Number of Supplier Trainingstimes32Supplier Training Coverage Rate%7140Number of Suppliers Complying with Relevant SupplierManagement Regulations

No.870750Percentage of New Suppliers Selected Based on EnvironmentalEvaluation Criteria

%/100Percentage of New Suppliers Selected Based on Social EvaluationCriteria

%/10

GoveranceMetricsUnit20232024

Board of Directors Memberspersons99Number of Independent Directors on the Boardpersons33Supervisory Board Memberspersons33Number of Employee Supervisor on the Supervisory Boardpersons11Audit Committee of the Board of Directorspersons55Nomination Committee of the Board of Directorspersons55Remuneration and Assessment Committee of the Board of Directorspersons55Strategic and ESG Committeepersons/7Number of Shareholder Meetings Heldtimes68Number of Board of Directors Meetings Heldtimes1115Number of Supervisory Board Meetings Heldtimes1013Number of Strategic and ESG Committee Meetings Heldtimes/1Average Dividend Ratio Over the Last Three Years%71.9470Number of Party BranchesNo.1314Number of Full Members in the Partypersons207204Number of Probationary Party Memberspersons43Number of Internal Auditstimes5345Number of Regular Audit Reportsitems164Number of Special Audit Reportsitems2930Number of Inspection Reportsitems811Anti-corruption Complaint Resolution Rate%100100Employee Business Ethics and Anti-corruption Training Coverage Rate%100100Average Training Hours for Employee Business Ethics and Anti-corruption Training

hours163Number of Business Ethics and Anti-corruption Training Coursesitems2111Total Number of Participants in Business Ethics and Anti-corruptionTraining

persons/3,243Number of Information Security Training Sessionstimes42Employee Coverage Rate for Information Security Training%100100Total Hours of Information Security Traininghours62Number of Participants in Information Security Trainingpersons300/Number of Major Information Security Incidents or User Privacy Breachescases00Number of Legal Regulations Promotion Sessionstimes3　3Investment Decision Meeting (DingTalk / Teleconference)times23　28Pre-audit Meeting (DingTalk / Teleconference)times9　9Post-investment Management Meeting (DingTalk / Teleconference)times2　20On-site Post-investment Researchtimes1　7

Report Index Guidance

DAYU Irrigation 2024 Sustainability Report Indicator Index Table

Report Section

Shenzhen Stock ExchangeSustainable DevelopmentReport Guidelines

GRI

About This Report/

2-2 Entities included in the organization's sustainable developmentreport2-3 Reporting period, reporting frequency, and contactChairman's Message/

2-22 Statement on the sustainable development strategy3-3 Management of material topics

About DAYU Irrigation/

2-1 Organizational details2-2 Entities included in the organization's sustainable developmentreport2-6 Activities, value chain, and other business relationships2-22 Statement on the sustainable development strategySustainability Management & GovernanceSustainabilityManagement &Governance

Articles 12, 13, 51

2-14 Role of the highest governance body in the sustainable developmentreport2-16 Communication on material concerns2-17 Knowledge of the highest governance body2-25 Procedures for remedying negative impactsStakeholderCommunication &Due Diligence

Articles 9, 52, 53

2-26 Mechanisms for seeking advice and raising concerns2-29 Methods of stakeholder engagementSustainability TopicAnalysis

Articles 5, 16

3-1 Process for determining material topics3-2 Material topics list3-3 Management of material topicsAnnual PerformanceOverview

//

Special Topics//

DAYU Irrigation 2024 Sustainability Report Indicator Index Table

Climate ChangeResponse

Articles 14, 18, 20, 21,22, 23, 24, 27

201-2 Financial impact of climate - related risks and opportunities302-5 Decrease in energy demand from products and services305-1 Direct (Scope 1) GHG emissions305-2 Energy indirect (Scope 2) GHG emissions

GreenProduction

Articles 20, 28, 30, 31,35, 34, 36

302-1 Energy consumption within the organization302-4 Reducing energy consumption302-5 Reducing energy demand from products and services303-1 Water usage and the relationship with water as a shared resource303-2 Management of water - related impacts306-1 Waste generation and signicant waste - related impacts306-2 Management of signicant waste - related impacts

Low - CarbonOperation

Articles 20, 27

302-4 Reducing energy consumption305-5 GHG emissions reduction

EcologicalProtection

Article 32101-2 Management of biodiversity impacts

Water Nurtures Ecology, Green Growth Together

DAYU Irrigation 2024 Sustainability Report Indicator Index Table

Innovation DrivingDevelopment

Articles 41, 42, 48416-1 Health and safety impacts of products and services categoriesSmart WaterEnriches Villages

Articles 38, 39, 47

416-1 Health and safety impacts of products and services categories416-2 Violations of health and safety impacts of products and services417-1 Requirements for product and service information and labeling417-2 Violations of product and service information and labeling417-3 Violations related to marketing communications

Talent Creates theFuture

Articles 49, 50

2-25 Procedures for remedying negative impacts2-26 Mechanisms for seeking advice and raising concerns2-27 Compliance with laws and regulations2-30 Collective bargaining agreements201-3 Fixed benet obligations and other retirement plans401-2 Benets provided to full - time employees (excluding temporaryor part - time workers)403-1 Occupational health and safety management system403-2 Hazard identication, risk assessment, and incident investigation403-3 Occupational health services403-4 Occupational health and safety matters: Worker participation,consultation, and communication403-5 Worker occupational health and safety training403-6 Promoting worker health403-7 Prevention and mitigation of work - related health and safetyimpacts directly related to business relationships403-8 Workers covered by the occupational health and safetymanagement system403-10 Work - related health issues405-1 Diversity of governance bodies and employees408-1 Operations and suppliers at risk of signicant child labor incidents409-1 Operations and suppliers at risk of signicant forced or compulsorylabor incidentsPublic WelfareDrives RuralDevelopment

Articles 38, 39, 40

203-1 Infrastructure investments and supportive services203-2 Signicant indirect economic impacts413-2 Operations with actual or potential signicant negative impactson local communities

CorporateGovernanceStandardization

Article 12

2-9 Governance structure and composition2-10 Nomination and selection of the highest governance body2-12 Supervision by the highest governance body on managementimpacts2-13 Responsibility delegation for management impacts2-16 Communication on material concerns2-25 Procedures for remedying negative impacts2-27 Compliance with laws and regulations205-1 Operations assessed for corruption risks

DAYU Irrigation 2024 Sustainability Report Indicator Index TableSolidifying theComplianceFoundation

Articles 54, 55, 56

2-23 Policy commitments2-24 Integrating policy commitments2-25 Procedures for remedying negative impacts2-26 Mechanisms for seeking advice and raising concerns2-27 Compliance with laws and regulations205-2 Communication and training on anti - corruption policies andprocedures

Optimizing SupplyCollaboration

Articles 44, 45, 54, 55

2-6 Activities, value chains, and other business relationships308-2 Negative environmental impacts in the supply chain and actionstaken407-1 Operations and suppliers facing risks related to freedom ofassociation and collective bargaining rights408-1 Operations and suppliers at risk of signicant child labor incidents409-1 Operations and suppliers at risk of signicant forced or compulsorylabor incidents414-1 New suppliers screened using social criteria414-2 Negative social impacts in the supply chain and actions takenParty BuildingDrivingDevelopment

//Future Outlook//

Key PerformanceData Table

/

2-7 Employees302-1 Energy consumption within the organization302-3 Energy intensity303-3 Water withdrawal303-4 Water discharge303-5 Water consumption305-1 Direct (Scope 1) GHG emissions305-2 Energy indirect (Scope 2) GHG emissions305-3 Other indirect (Scope 3) GHG emissions305-4 GHG emissions intensity306-3 Waste generated306-4 Waste transferred from disposal306-5 Waste sent for disposal308-1 New suppliers screened using environmental criteria401-1 New employee hire and employee turnover rates401-3 Parental leave403-9 Work - related injuries404-1 Average hours of training per employee per year404-3 Percentage of employees receiving regular performance andcareer development reviews405-1 Diversity of governance bodies and employeesIndex TableArticle 57/Reader Feedback//

Smart Water Leading, Shared Responsibility

Clear Waters and Steady Progress

Clear Waters and Steady Progress

DAYU Irrigation Group 2024 Sustainability Report

Dear Reader,Hello!

Thank you very much for taking the time to read this report amidst your busy schedule. We highly value and look forwardto your feedback on this report. Your evaluation will help us continuously improve our sustainability information disclosureand enhance our sustainable development management and practices. We sincerely welcome and appreciate your valuablesuggestions!

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Oce Address: Floors 33 - 35, Ping'an Xingfu Center, Courtyard 24, Lize Road, Fengtai District, Beijing No. 10 Minwang Road, Jingbin Industrial Park, Wuqing District, Tianjin No. 290 Jiefang Road, Jiuquan City, Gansu ProvinceContact Information: 0937 - 2688658 022 - 59679306Email: dyjszqb@dyjs.comWebsite: www.dyjs.com

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