2024

可持续发展报告

徐州海伦哲专用车辆股份有限公司

2024SUSTAINABILITY REPORT

XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.

Contents

ForewordAbout This ReportMessage from the ChairmanAbout Handler

Appendices

ESG Performance OverviewContent IndexSuggestions and Feedback

Climate Change ResponseEnvironmental Compliance ManagementPollution Prevention and Ecological ProtectionResource Utilization Optimization

EnvironmentalEmbracing Green Principles toProtect Ecosystems

Rural Revitalization and Social ContributionsInnovation-Driven Development and Technology EthicsSupply Chain ManagementProduct LiabilityData Security and Privacy ProtectionEmployee Rights and Interests Protection

SocialUniting Stakeholders for CollectiveProgress

Corporate GovernanceSustainable Development Governance MechanismsBusiness ConductCompliance and Risk Management

GovernanceUpholding Prudent Operations toSafeguard Enterprise Development

010203

About This Report

The Report marks the inaugural sustainability disclosure by Xuzhou Handler Special Vehicle Co., Ltd. (hereinafter referred to as“Handler”, “the Company”, or “we”) to the public. Prepared in accordance with the principles of objectivity, standardization, transparen-cy, and comprehensiveness, it highlights Handler’s sustainable development practices and performance throughout the year 2024.Introduction

Time frame: The Report covers the period from January 1, 2024, to December 31, 2024 (hereinafter referred to as “the Reporting Period”).To enhance the comparability and completeness of the Report, selected content may include retrospective data from previous years orforward-looking statements.Organizational scope: The Report focuses on Xuzhou Handler Special Vehicle Co., Ltd., including its subsidiaries. Unless explicitly statedotherwise, the scope of the Report aligns with that of the Company’s 2024 Annual Report.

Reporting Scope

The Report is published on an annual basis, coinciding with the fiscal year.Release Cycle

The data presented in the Report is derived from Handler’s internal records, official documents, and audited financial statements, withcertain financial figures extracted from the Company’s 2024 Annual Report. Unless otherwise specified, all monetary amounts in theReport are denominated in RMB.Data Sources

In support of our commitment to low-carbon environmental protection and sustainable development, the Report is available for onlineviewing and download in electronic format on the Shenzhen Stock Exchange website (www.szse.cn) and the Company’s official website(www.xzhlz.com).Report Access

Xuzhou Handler Special Vehicle Co., Ltd.Address: No. 19 Baoliansi Road, Xuzhou Economic and Technological Development Zone, Jiangsu Province, ChinaPostal code: 221004Email: hlzzqb@xzhlz.com

Contact Information

Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange— Sustainability Report (For Trial Implementation) issuedby the Shenzhen Stock ExchangeSelf-Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange—Preparation of Sustainability Reports issued by theShenzhen Stock ExchangeSustainability Reporting Standards (GRI Standards 2021) issued by the Global Sustainability Standards Board (GSSB)United Nations 2030 Sustainable Development Goals (SDGs)

Preparation Basis

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

In 2024, Handler achieved product carbon footprint certification for its “GKS28 Aerial Work Platform” and actively pursued the development ofgreen products such as compressed air foam fire trucks and liquid nitrogen fire trucks. These efforts underscore our commitment to technolog-ical innovation and application within the green and low-carbon sector. Furthermore, we implemented initiatives such as the paint-to-powderproject and promoted circulating water reuse in product debugging areas, continuously reducing emissions and optimizing resource conserva-tion and recycling. In the face of climate change, Handler is dedicated to mitigating its carbon footprint through enhanced energy managementand the implementation of energy-saving measures. We are also actively identifying and addressing climate-related risks and opportunities toeffectively manage our exposure. Looking ahead, we will continue to explore and refine our climate-adaptive product portfolio and enhance ourresilience to climate impacts.

Handler Champions Green Manufacturing Upgrades,Highlighting its Commitment to Environmental Friendliness.

In 2024, the Company focused on rural public safety and infrastructure resilience construction in 69 cities and towns across 25 provinces nation-wide, supporting the implementation of the rural revitalization strategy. With respect to our products and services, we are committed to innova-tion-driven development, continuously cultivating intellectual property assets, and achieving significant breakthroughs in high-end coretechnology research. Furthermore, we are dedicated to optimizing customer service quality, and I am pleased to report that annual customersatisfaction reached a record high of 99.09%. Above all, Handler prioritizes the well-being of its employees. Through a multi-faceted employeewelfare system, a dual-track “management and professional” development pathway, and a dual-engine training model incorporating “academicadvancement + skill certification”, we foster a positive synergy between employee growth and enterprise development. In the realm of occupa-tional health and safety, Handler has achieved ISO 45001 certification and established a robust safety management system. We are committedto continuously improving employee health protection and reinforcing our frontline defenses for work safety.

Handler Demonstrates a Proactive Approach to Responsibility,Empowering Partners for Shared Success.

Looking ahead, Handler will harness “New Quality Productive Forces” as the engine, deepening its strategic initiatives in Specialized EquipmentInnovation, New Energy Transition, Intelligent Transformation, and Global Expansion. This will facilitate a profound integration of ESG strategywith business growth. We remain steadfast in our commitment to advancing green operations and strengthening our social responsibilityinitiatives, underpinned by transparent and efficient governance mechanisms. These concerted efforts will safeguard sustainable developmentand create shared value for all stakeholders.

Xuzhou Handler Special Vehicle Co., Ltd.

ChairmanDing Bo

Message from the Chairman

Dear friends,On behalf of the Board of Directors of Handler, I extend mysincere gratitude for your unwavering care and support.Against a backdrop of escalating global climate change andan accelerating transition towards low-carbon economies,sustainable development has emerged as a core imperativefor high-quality economic growth. As a listed companydedicated to specialized high-end intelligent equipmentmanufacturing, Handler remained steadfast in its “technolo-gy-driven differentiation” strategy throughout 2024. Byleveraging innovation to drive green transformation, we arecommitted to delivering more efficient, low-carbonintelligent equipment solutions to our global clientele.Integrating sustainability into every facet of our operations,we strive to foster a modern industrial ecosystem in harmo-ny with nature.

“

In 2024, Handler continued to strengthen its corporate governance framework and further optimize its governance structure to ensure scientificand efficient decision-making. We place significant emphasis on safeguarding shareholders' rights and investor returns. This year, we canceled

31.88 million repurchased shares and distributed a cash dividend of RMB34.59 million for 2023, allowing our investors to share in the dividends

of our success. Furthermore, we are embedding sustainability at the heart of our governance, developing a “Four-Dimensional Synergy”approach to sustainable practices, designed to fortify Handler’s competitive edge. With regard to business ethics, Handler standardizes businessconduct through a comprehensive set of measures, including commitment signing, risk control, inspections, and training. We continuouslyreinforce employees' business ethics awareness and ensure adherence to the principles of integrity and compliance in all business activities. Wealso actively engage and collaborate with partners to promote a fair and transparent business environment and jointly maintain a healthyindustry order.

Handler Remains Focused on Strengthening Governanceto Guarantee Integrity and Compliance.

About Handler

Founded in 2005, Handler secured specialized vehicle production qualification from the National Development and Reform Commis-sion (NDRC) in 2006. In 2011, the Company made history by listing on the ChiNext Board of Shenzhen Stock Exchange (Stock Code:

300201), becoming China's first listed company in the mobile elevating work platform (MEWP) sector. In late 2012, Handler successful-ly acquired Shanghai Grumman International Fire Equipment Co., Ltd. Today, Handler is a leading provider of specialized vehicles androbotic solutions, encompassing research and development (R&D), manufacturing, sales, and service. Our product range includesmobile elevating work platforms (MEWPs), emergency power generation vehicles, emergency drainage vehicles, fire trucks, andspecialized vehicles for military applications.Handler is honored to be recognized as a National High-Tech Enterprise, a National Intellectual Property Demonstration Enterprise, aNational Quality Benchmark Enterprise, a Jiangsu Provincial Innovative Leading Enterprise, and a Jiangsu Provincial Specialized andSophisticated Enterprise. We remain steadfast in our commitment to a “technology-driven differentiation” strategy, guided by theprinciple of “transforming traditional industries through advanced technology and driving corporate growth through technologicalinnovation”. Our business model, founded on “R&D innovation as the cornerstone, differentiated design and customization as thecore, flexible manufacturing as the support, and refined services as the guarantee”, enables us to blend independent innovation withthe integration of cutting-edge global technologies, fostering substantial growth in recent years.Handler plays a leading, principal, or participating role in drafting national or industry standards for aerial work vehicles, aerial workplatforms, power supply vehicles, power distribution vehicles, and fire trucks. The Company consistently leads the industry inlightweight design, aerial work, intelligent features, and insulated live-line operation for aerial work vehicles, securing a dominantposition in the mid-to-high-end market. Handler has achieved import substitution for insulated vehicles, as the sole enterprise in theindustry to realize domestic production of insulated booms. Furthermore, Handler has become a leading provider of power emergen-cy support vehicle systems in China, offering the most comprehensive product range, complete functionality, and integrated solutions.The emergency drainage and rescue vehicles developed by the Company were successfully recognized as “Typical Cases for Applica-tion and Promotion of Safety and Emergency Equipment in 2024” by the Ministry of Industry and Information Technology (MIIT).Handler has garnered numerous accolades, including two National Science and Technology Progress Second Prizes, one China PatentExcellence Award, five provincial and ministerial science and technology progress awards, and three sets of First-of-its-Kind MajorTechnical Equipment in Jiangsu Province. The “Handler” brand is recognized as a Jiangsu Provincial Famous Brand.

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

Company Profile

Shanghai Grumman International Fire Equipment Co., Ltd., a wholly-owned subsidiary, boasts a century-long legacy as the birthplaceof China's fire truck industry. It has pioneered countless industry-first innovations, including China's first fire truck, first fire pump, firstfire extinguishing agent, and first portable pump engine. As a key player in China’s fire truck industry, Shanghai Grumman offers acomprehensive portfolio encompassing tank-type, special-type, aerial-lift, and firefighting robotic solutions. Adhering to a“military-first, civil-military integration” strategy, Shanghai Grumman’s military equipment demonstrates strong market competitive-ness.The Company's emergency power generation vehicles, bypass live-line operation vehicles, fire trucks, firefighting robots, anddecontamination vehicles have been instrumental in ensuring power security at major events such as the Shanghai CooperationOrganization Summit, National Day Military Parade, G20 Summit, Winter Olympics, World University Games, Asian Games, and AsianWinter Games. They have also played a critical role in emergency rescue efforts following the Zhengzhou Flood on July 20 (2021),Sichuan Power Supply Assurance Operations (2022), the Tianjin Port Explosion on August 12 (2015), the Xiangshui Chemical PlantExplosion on March 12 (2019), and the Shigatse Dingri County 6.8-Magnitude Earthquake (2025).Driven by a business model that prioritizes “R&D innovation as the cornerstone, differentiated design and customization as the core,flexible manufacturing as the support, and refined services as the guarantee”, and guided by a “technology-driven differentiation”strategy, the Company pursues development through innovation and efficiency through technology. With a talented R&D team andadvanced research laboratories, the Company is dedicated to overcoming key core technologies, promoting the localization ofhigh-end core components, accelerating high-level scientific and technological self-reliance, and securing a leading position in theindustrial and value chains. The Company focuses on developing specialized robots, intelligent monitoring and command systems,and intelligent operation support systems for a wide range of applications, including flood control and drainage, anti-explosion andfirefighting, emergency power supply, and fire rescue, contributing to society and benefiting the people through technological innova-tion. Moreover, the Company actively participates in emergency response efforts by repeatedly dispatching service personnel andmaintaining a dedicated emergency rescue team, demonstrating a strong commitment to social responsibility.

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORD

Corporate Culture

Take the lead in professional achievements, andhonestly create social well-being.We are committed to the intelligent equipmentmanufacturing to strive to be industry expert andpioneer. We are engaged in all activities in goodfaith to be the creator of social well-being.

Our Vision

We adhere to the business philosophy of "custom-er's success as our mission".We advocate the style of "honest man, and earnestwork"."Honesty, trust, and mutual respect" are thefoundation for all our activities."Crisis awareness, innovative spirit, teamwork,good at authorization and commitment" are thebackbones for our career success."Value embodiment" and "harmony" are thepillars for our success."Customer success" is the goal of our struggle.

Our Values

CustomerSuccessValue Demonstration

HonestyTrust

MutualRespect

Harmony & HappinessCrisis AwarenessInnovation Spirit

Team CollaborationEffective Delegation

Commitment Fulfillment

Our Shared Values

Integrity, Innovation, Faster and Stronger!Our Spirit

To make aerial work safer, more comfortable, andswifter.To make emergency rescues safer, smarter, andmore efficient.

Our Mission

We remain at the forefront of global technologicaladvancements, leading domestic industry trendsthrough innovation. We are committed to deliver-ing premium products and services that empowerour customers to achieve success and satisfaction.We actively expand our presence in both domesticand international markets, specializing in provid-ing cutting-edge specialized vehicle solutions. Byleveraging advanced technologies to transformtraditional industries, we drive sector-wide prog-ress through continuous technical progress.We are dedicated to cultivating an exemplaryworkplace, promoting employee growth, andfostering a corporate culture rooted in trust,respect, and harmony.

Our DevelopmentStrategy

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORD

Included in the“2024 List of Typical Cases for Application andPromotion of Safety and Emergency Equipment”General Office of the Ministry of Industry andInformation Technology of the People's Republic of China

Jiangsu Provincial Specialized and Sophisticated SME

Jiangsu Provincial Department of Industry

and Information Technology

Jiangsu Provincial May 1 Labor AwardJiangsu Provincial Trade Union Council

AAA Credit-Rated Enterprise

Jiangsu Global Credit Rating Co., Ltd.

Elected as Vice Chairman Unit of the China

Safety Industry Association

China Safety Industry Association

Included in the 2024 (First Batch) Shanghai Innovative Product Recommendation Catalog

Shanghai Municipal Commission ofEconomy and Informatization

Champion of a Single Product of the Shanghai

Manufacturing Industry of 2024Shanghai Municipal Commission ofEconomy and Informatization

2024 Songjiang District Service-Oriented

Seed EnterpriseShanghai Songjiang District Economy Commission

Certificate of Demonstration Enterprise for

Patent Work in Shanghai

Shanghai Intellectual Property Office

Specialized and Sophisticated SME

Shanghai Municipal Commission of Economy and Informatization

2024 Certificate of “Philanthropic Enterprise in

Agricultural Assistance”Shanghai Songjiang District Civilian Volunteers Public

Service Development Center

Annual Honors and Awards

XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.SHANGHAI GRUMMAN INTERNATIONAL FIRE EQUIPMENT CO., LTD.

EnvironmentalEmbracing Green Principlesto Protect Ecosystems

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.

ENVIRONMENTAL

SDGs addressed in this chapter

Climate Change ResponseEnvironmental Compliance ManagementPollution Prevention and Ecological ProtectionResource Utilization Optimization

Climate Change ResponseHandler is proactively aligning with China’s “Dual Carbon” targets (achieving carbon peaking and carbon neutrality), embedding this commit-ment deeply within its corporate development strategy to drive concrete progress towards these goals. Recognizing the multifaceted impactsof climate change on its assets, supply chain, trade, and logistics operations, the Company diligently assesses associated risks and opportuni-ties. This forward-thinking approach informs the development of robust mitigation and adaptation strategies, ensuring operational resilienceand enabling sustainable development in a complex and evolving world.

Handler closely monitors climate-related impacts, continuously enhancing its capacity to assess and mitigate risks. The Company guides itssubsidiaries in developing tailored strategies to bolster climate resilience and ensure business continuity.Climate Risks and Opportunities

The increasing frequency and intensity ofextreme weather events, such as typhoonsand floods, pose a significant threat to ourfacilities, equipment, and infrastructure,potentially resulting in asset damage, dataloss, and heightened safety risks foremployees. These disruptions can lead toequipment malfunctions, service interrup-tions, and major operational breakdowns,thereby impacting business continuity andcausing direct or indirect financial losses.Furthermore, extreme heatwaves mayinduce electricity supply shortages, disrupt-ing energy-intensive operations andleading to revenue declines.

Indirect cost escalationDirect revenue declineFixed asset value depreci-ation

Acute risks

Chronic risks

Establish a robust emergencymanagement system.Refine contingency plans andconduct regular drills to enhancecrisis response capabilities.

Upgrade energy-efficient equip-ment, optimize cooling technolo-gies, and adopt digital manage-ment for systemic energy andcarbon reduction.Promote water-saving initiativesand implement integrated watermanagement.

Rising temperatures may escalate demandfor refrigeration equipment and amplifymaintenance costs, driving up operationalexpenditures. Water scarcity could heightenexpenditures through alternative waterprocurement, inflating business expenses.

Direct/Indirect costescalationDirect revenue decline

Physicalrisks

Transitionrisks

Climate-related risk descriptionTypeFinancial impactCountermeasure

Climate change trends may impact productmarket access, leading to shifts in custom-er purchasing preferences and newrequirements such as stringent carbonfootprint compliance. Failure to meetmarket demand for green and low-carbonproducts could diminish competitivenessand sales. Additionally, volatility in rawmaterial and energy prices may escalateoperational costs.

Direct cost escalationDirect revenue decline

Indirect cost escalationDirect revenue decline

Market risks

Technological risks

Strengthen monitoring of evolv-ing carbon footprint regulations.Implement product carbon footprintmanagement and certificationprograms, and develop zero-carbondemonstration projects.Intensify lean management-driv-en efficiency enhancement initia-tives to achieve substantial andeffective improvements in opera-tional profitability.

Develop energy-saving andcarbon-reduction technologiesto advance clean energy equip-ment.Accelerate energy structuretransformation by implementingenergy efficiency retrofits anddriving green industrial transi-tion.

Amid the continuous advancement of ener-gy-saving equipment and technologies,traditional high-energy-consuming equip-ment faces an inevitable upgrade-and-re-placement trend. Consequently, the Com-pany may incur increased capital expendi-tures due to the introduction of new ener-gy-efficient devices, adoption of ener-gy-saving and emission-reduction technol-ogies, or optimization of process systems.Additionally, R&D expenditures on innova-tive new energy products and alternativetechnologies are also projected to rise.

Indirect cost escalation

Prioritize ESG initiatives tostrengthen our brand as a leaderin sustainable development.Proactively engage stakeholders,identify and update material ESGissues, and integrate these prior-ities into our corporate strategy.Ensure timely, transparent, andequitable information disclosurein compliance with all applicablelaws and regulations.

As stakeholders increasingly expect compa-nies to proactively address climate changeand enhance disclosure transparency inline with “Dual Carbon” targets and carbonneutrality policies, insufficient progress inemission reduction efforts may lead toreputational damage due to unmet envi-ronmental responsibility expectations.

Climate-related risk descriptionTypeFinancial impactCountermeasure

Reputational risks

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

Handler’s Climate Opportunity Identification and Response Framework

Policy and legal risks

Closely monitor evolving policiesand regulations related to the“Dual Carbon” targets, compre-hensively implement our carbonreduction action plan, accelerateresearch and development inlow-carbon technologies, andproactively our position within thegreen and low-carbon sectors.

Amid recent energy conservation, emis-sions reduction, and carbon emission trad-ing regulations, stricter carbon complianceoversight on corporate facilities could man-date the purchase of carbon emissionallowances, triggering operational costescalation.

Direct cost escalation

Green Actions and Initiatives

In response to the pressing global challenges of climate change and resource scarcity, carbon footprint certification has emerged as a crucialmetric for assessing corporate green performance. It not only enables businesses to optimize their industrial chains and establish environ-mentally sound logistics and supply chain systems, but also fosters the growth of low-carbon industries and economies, thereby enhancingtheir competitiveness in the international marketplace. Aligned with China’s carbon peaking and carbon neutrality strategies, the Companyachieved carbon footprint certification for its “GKS28 Aerial Work Platform” during the Reporting Period. This accomplishment quantifies andprovides transparency into the product’s carbon footprint data, significantly bolstering its environmental credentials.

Product Carbon Footprint Certification

The Company champions technological innovation as its core driver, integrating green development principles into every facet of R&D andproduct design. Through pioneering green technologies and products, we strive to create lasting value for society.Green Technologies

Improving energy efficiency contributes toreducing operational costs in the produc-tion process for enterprises.

Direct cost decline

Upgrade energy-efficient equip-ment and implement ener-gy-saving technological retrofitprojects to enhance energyefficiency.Optimize management systemswhile promoting high-efficiencyresource utilization.Promote the application of solarenergy and other clean energysources to drive the advance-ment and adoption of cleantechnologies.Adopt innovative productionprocesses and new equipmentto reduce energy consumption.

Increasing the proportion of clean energycan reduce energy consumption costs;optimizing production processes andupgrading equipment can reduce green-house gas emissions, thereby reducingsensitivity to changes in carbon emissioncosts.

Marketand products

Energysubstitution

Resourceefficiency

Climate-related opportunity descriptionTypeFinancial impactCountermeasure

Direct cost declineDirect revenueescalation

Promote the green and low-car-bon development of the transpor-tation industry, and actively devel-op new energy-powered vehicles.Strengthen and expand strategicemerging industries in the greenand low-carbon sector.

Against the backdrop of the low-carbon

economic transition, the growing consum-

er preference for low-carbon products is

driving demand growth for green

low-emission alternatives, thereby unlock-

ing revenue growth potential for compa-

nies offering vehicles with eco-friendly

attributes. Additionally, developing new

energy products may qualify businesses for

government incentives and rewards.

Direct revenueescalation

Handler’s Climate Opportunity Identification and Response Framework

Rooftop distributed photovoltaic (PV) systems convert solar energydirectly into electricity and are typically installed on building roof-tops. These decentralized power generation systems offer severaladvantages, including lower power output, minimal pollution, andsignificant environmental benefits.As of the end of the Reporting Period, the Company had installedPV panels on its joint workshops and finishing facilities, boasting atotal installed capacity of 3.88 MW. These systems generatedapproximately 1,000,000 kWh of solar power during the year.

Rooftop distributed photovoltaic

Rooftop Distributed PhotovoltaicHandler’s Online Power Monitoring Platform – PV

Generation Monitoring

boasting a total installed capacity of

3.88 MW

These systems generated approximately

1,000,000 kWhof solar power during the year

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

The Company's coating line utilizes a domestically leading powder electrostatic spraying technology, which offerscritical advantages: Zero volatile organic compound (VOC) emissions, eliminating atmospheric organic waste pollu-tion; No water consumption as a process material, avoiding secondary solid waste treatment – conserving non-renew-able water while preventing waste reprocessing; 100% recyclable powder materials, reducing raw material waste andlowering production costs through closed-loop resource utilization.In 2024,

Powder electrostatic spraying process

the Company used an average of

1.4 tons of powder coating per month

totaling17 tons for the year

effectively replacing approximately

51 tons of traditional paint

The Company actively develops green products, optimizing environmental performance throughout their lifecycle through innovative technol-ogy R&D. This provides a green impetus for sustainable industry development.Green Products

In firefighting technology innovation, the use of compressed air foamsystem (CAFS) by aerial tethered UAV fire truck represents a significantadvancement in fire suppression media. Equipped with a highly inte-grated and intelligent CAFS, these fire trucks developed by ShanghaiGrumman enable rapid response and can be deployed in under 5 min-utes. Compared to traditional methods, they boost firefighting efficien-cy by 3-5 times and reduce water consumption by over 50%.

Aerial tethered UAV fire truckCase

Shanghai Grumman’s Aerial Tethered UAV Fire Truck Testing

Shanghai Grumman's compressed air foam fire truck utilizes an intelligent control system to monitor flow and pressure param-eters in real time, precisely regulating the foam-to-air mixture ratio. This technology achieves a 75% reduction in water usagecompared to conventional systems. Furthermore, the system significantly enhances firefighting efficiency and reduces theconsumption of foam concentrate. When equipped with a multi-agent fire suppression system, the fire truck can achieve “wa-terless firefighting” through the optimal mixing of dry powder and high-pressure nitrogen.

Compressed air foam fire truckCase

Developed in collaboration with Sinopec Institute of Safety Engineering, Shanghai Grumman's liquid nitrogen fire truck utilizescutting-edge liquid nitrogen-foam mixed foaming technology, positioning it as a global leader in firefighting innovation. Com-pared to conventional foam fire trucks, the liquid nitrogen fire trucks achieve more than double the firefighting efficiency whilereducing foam concentrate consumption by over 40% (formulated as 6% foam concentrate + 94% water).

Liquid nitrogen fire truckCase

Handler transitioned from a thermosetting Sheet Molding Compound (SMC) front mask assembly to a thermoplastic PA66mask, moving from a non-recyclable thermoset material to a recyclable thermoplastic. This reformulation further reducedwaste generation during component production, increasing the product’s recyclability rate from 74% to 79% and achievingcompliance with the recyclability standard (> 75%).

3RTS10&S12 face mask base material thermoplastic reformulationCase

3RTS10 & S12 Face Mask Base Material Thermoplastic Reformulation

IndicatorsUnit2024tCO?etCO?e/RMB million revenueCarbon emissionsCarbon emission intensity

0.071

Handler’s Carbon Emission Profile

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

Environmental Compliance Management

Environmental compliance management is a cornerstone of Handler's green development philosophy. Handler is committed to national envi-ronmental policies, strictly adhering to environmental protection laws, regulations, and related requirements. We continually improve ourenvironmental management system to ensure the effective implementation of safety and environmental protection policies. The Companyproactively manages environmental risks at the source, continuously enhances its environmental management capabilities, and scientificallycoordinates environmental protection efforts across its operations. We are dedicated to fulfilling our environmental responsibilities.

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

Environmental Governance

Handler's Integrated Management Department undertakes the core responsibilities of environmental management, ensuring that productionlines rigorously adhere to the Company's environmental policies and regulations. This structure clarifies and standardizes environmentalprotection responsibilities at all levels, ensuring the efficient promotion and orderly implementation of environmental management work.Environmental Management Structure

Handler strictly complies with laws and regulations such as the Environmental Protection Law of the People's Republic of China and the Law of thePeople's Republic of China on Environmental Impact Assessment, ensuring that all business activities and production processes fully meet localenvironmental regulations and industry standards. We are steadfast in fulfilling our corporate environmental responsibilities. The Companyhas formulated and implemented a series of management documents, including the Environmental Factor Identi?cation, Evaluation and ControlProcedures and the Environmental and Occupational Health and Safety Performance Monitoring Control Procedures, which specify detailed environ-mental protection requirements and standards. These emphasize pollution control at the source, promoting cleaner production and full-pro-cess pollution control. In addition, the Company has established an environmental protection target accountability system and regularlyconducts environmental supervision and assessments to ensure the effective implementation and continuous improvement of environmentalmeasures.

Environmental Management System

Handler is committed to advancing the certification of its environmental managementsystem to ensure compliance and efficient operation, guaranteeing that business activi-ties meet relevant environmental standards. As of the end of the Reporting Period, theCompany has obtained the ISO 14001 Environmental Management System Certification.

Environmental Management System Certification

The Company is actively promoting the creation of a “Green Factory” as a key initiative toimplement its sustainability strategy. To this end, we have developed a comprehensiveand systematic green factory training plan to enhance all employees’ understanding andpractical capabilities regarding green manufacturing concepts. Training programsinclude in-depth interpretations of green development policies, familiarizing employeeswith national and local guidelines, regulations, and incentives in this area. This traininglays a robust foundation for the construction of our Green Factory and supports theCompany’s steady progress toward sustainable development.

Handler’s ISO 14001 EnvironmentalManagement System Certification

Handler’s “Green Factory” Creation Training

The Company places a high priority on environmental risk identification and management, standardizing procedures for the identification,evaluation, and control of environmental risks through the Environmental Factor Identi?cation, Evaluation, and Control Procedures. Integratingenvironmental risk assessments into all phases of project construction and operations, and considering both our operational conditions andthe characteristics of the surrounding environment, we systematically identify environmental factors associated with our activities (e.g., waste-water discharge, energy consumption). This ensures adherence to environmental regulations and enables the development of preventativemeasures to mitigate environmental risks.

Environmental Risk Identification and Management

Substantial environmental funding is essential for the Company to effec-tively implement its environmental initiatives. In recent years, the Companyhas actively undertaken several key environmental projects, necessitatingsubstantial capital investment to facilitate the successful construction ofenvironmental facilities, procurement and installation of advanced equip-ment, and R&D of related technologies. The progressive completion ofthese high-investment projects has not only substantially enhanced ourenvironmental capabilities through improved infrastructure but has alsoestablished a solid foundation for ongoing environmental operations.

Environmental Investments

During the Reporting Period,the Company’s total investment in environmentalprotection amounted to RMB

1,534,100

Performance Highlights

Handler prioritizes enhancing employees’ environmental awareness and practical skills and continuously conducts systematic environmentaltraining to reinforce their theoretical knowledge, build professional competence in environmental protection, and integrate environmentalawareness into the corporate culture.During the Reporting Period, the Company sponsored designated personnel to participate in over ten environmental knowledge trainingsessions organized by local governments. In addition, we conducted two internal environmental training sessions for 60 participants, coveringdepartments and teams involved in hazardous waste generation, such as the Painting Workshop and FRP Workshop, with each session lastingeight hours. Through this training, employees improve their ability to effectively minimize hazardous waste generation in their daily work andimplement appropriate handling procedures.

Environmental Training

Environmental Protection Training

Pollution Prevention andEcological Protection

Handler views the management of pollutant emissions as a critical responsibility, upholding a philosophy of ecological protection and adheringstrictly to national laws, regulations, and emission standards to rigorously control exhaust gases, wastewater, and waste. The Company continu-ously optimizes its pollution prevention and management mechanisms, promotes comprehensive governance of waste gas, wastewater, andsolid waste, enhances environmental protection measures, and strives to achieve green production and sustainable development.

Handler strictly adheres to laws and regulations such as the Atmospheric Pollution Prevention and Control Law of the People's Republic of China, theIntegrated Emission Standard of Air Pollutants (GB16297-1996), and the Standard for Fugitive Emission of Volatile Organic Compounds (GB37822-2019).The Company has also formulated internal management systems such as the Atmospheric Pollution Management Regulations, which definerequirements for pollution prevention equipment management, VOC governance, and pollutant monitoring.

Waste Gas Emission Reduction

Handler actively collaborates with third-party online emission monitoring serviceproviders to ensure the proper and effective daily testing of exhaust gas emissionsand to maintain the stable operation of online monitoring equipment. This ensuresthat emission data complies with all regulatory standards.

Waste Gas Detection System

The primary air pollutants generated during the Company’s production processes include sulfur dioxide (SO?), nitrogen oxides (NOx), volatileorganic compounds (VOCs), and particulate matter (smoke and dust). The Company continuously strengthens its waste gas treatment effortsto reduce emissions from production operations. By deploying standardized waste gas collection and treatment equipment, implementingcomprehensive monitoring plans, and adopting advanced emission control technologies, we achieve comprehensive control over waste gasemissions and enhance overall treatment efficiency.

Waste Gas Emission Reduction Measures

Handler Continuous Emission Monitoring System(CEMS) for Atmospheric Pollutants

Painting Workshop Equipped withVOCs Collection and Treatment Systems

Centralized Welding FumeCollection and Treatment Equipment

To reduce VOC emissions, the Company actively promotes process design optimization, aiming for both reduction and substitu-tion of traditional materials. In component painting, powder coatings have replaced traditional paints, with a powder recyclingrate exceeding 90%. This significantly reduces VOC emissions and minimizes hazardous waste generation.

Paint-to-powder Conversion Emission Reduction ProjectCase

Before ImprovementAfter Improvement

Handler has upgraded the coating process for cargo compartment skin panels, transitioning from a traditional spray-paintingmethod to electrophoretic coating. The original process involved degreasing, oil removal, and epoxy primer spraying, whichgenerated significant VOC emissions and paint waste. Now, the Company utilizes pre-coated, electrophoretically treatedsubstrates, significantly reducing the need for epoxy primer spraying and eliminating degreasing and polishing of bare metalsheets, thereby resulting in a substantial decrease in VOC emissions.

Electrophoretic Coating Conversion Project for Cargo Compartment Skin PanelsCase

Before ImprovementAfter Improvement

2021

XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

IndicatorsUnit2024TonTonTonTon

Nitrogen oxides (NOx)

Sulfur dioxide (SO

)Particulate matterVolatile organic compounds (VOCs)

0.58

0.144

0.324

0.237

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

The Company strictly complies with laws and regulations such as the Water Pollution Prevention and Control Law of the People’s Republic of Chinaand the Integrated Wastewater Discharge Standard (GB8978-1996). Furthermore, we have established the Wastewater Treatment ManagementRegulations to standardize the design of drainage and sewage facilities, wastewater treatment equipment, and wastewater discharge methods.The Company’s wastewater primarily originates from domestic sewage generated within the facility, with primary pollutants including chemicaloxygen demand (COD), ammonia nitrogen (NH

-N), suspended solids (SS), and oil and grease.

Wastewater Treatment

Handler's Waste Gas Emission Profile

Handler adopts an eco-friendly principle in its plant drainage system design, implementing a segregated storm sewer separation system.Rainwater is directly discharged into the municipal storm drainage system through dedicated pipelines, preventing mixing with sewage toreduce wastewater treatment plant (WWTP) loading and promoting rainwater recycling. In domestic wastewater management, canteen effluentundergoes pre-treatment in an oil-water separator to remove oil and grease, and suspended solids, before being discharged into septic tanksalong with other domestic wastewater for biological treatment. Septic tanks utilize anaerobic microorganisms to decompose organic matter,effectively reducing pollutant concentrations. Finally, the treated and compliant wastewater is conveyed to specialized wastewater treatmentplants for centralized processing. This drainage and wastewater treatment model ensures compliant effluent discharge, effectively mitigatingadverse environmental impacts.

Drainage System Management

IndicatorsUnit2024TonTonTonTonTonTon

Total wastewater dischargeAmmonia nitrogenChemical oxygen demand (COD)Biochemical oxygen demand (BOD)Total phosphorus (TP)Suspended solids (SS)

11,500

0.18

2.22

1.1

0.024

0.367

Wastewater indicatorsBiochemical indicators for sewage

Handler’s Biochemical Indicators for Wastewater and Sewage

The Company strictly adheres to laws and regulations such as the Law of the People’s Republic of China on the Prevention and Control of Environmen-tal Pollution by Solid Waste and the Standard for Pollution Control on Hazardous Waste Storage (GB 18597-2023). Furthermore, we have establishedthe Waste Classi?cation Management Regulations to implement classified management of solid waste and standardize disposal procedures. TheCompany establishes a target management system through institutional development, source reduction, classified storage, resource recycling,environmentally sound disposal, and public awareness campaigns to promote the implementation of improvement measures.

Waste Management

Recyclable solid wasteScrap iron, scrapped parts, manufacturing waste, etc.The Engineering and Manufacturing Department is respon-sible for collecting, sorting, and stockpiling scrap materials.These materials are periodically processed through mar-ket-rate recycling partnerships with qualified contractors.

Non-recyclable solid wasteNon-recyclable foam plastics, kitchen waste,

construction wasteThe Engineering and Manufacturing Department is respon-sible for collection and transportation to designated wastestorage areas, while the General Management Departmentcoordinates with municipal sanitation authorities for envi-ronmentally sound disposal.Hazardous waste

Waste paint buckets, putty contain-ers, waste putty, paint sludge, spentactivated carbon, paint-contaminat-ed waste, waste mineral oil, wasteemulsion, waste resin mixtures

The waste-generating department is responsible for the collection, classification,packaging, labeling, and proper documentation of hazardous waste. All materialsmust be transported to the hazardous waste storage facility and registered in thewaste management ledger. Both the waste-generating department and the Envi-ronmental, Health, and Safety (EHS) Division shall maintain detailed operationalrecords in compliance with hazardous waste management regulations. The EHSDivision oversees the coordination with qualified disposal contractors to ensureenvironmentally sound treatment of hazardous waste.Handler’s Waste Classification and Management Measures Overview

Handler’s Waste Generation and Disposal Profile

IndicatorsUnit2024TonTonTon/RMB million revenue

TonTonTon/RMB million revenue

Total hazardous waste generatedTotal hazardous waste disposedHazardous waste discharge intensityTotal non-hazardous waste generatedTotal non-hazardous waste disposedNon-hazardous waste discharge intensity

119.42

121.40

0.075

976.70

976.70

0.614

Handler recognizes ecological conservation as a core tenet of corporate sustainability. Through innovative practices and enhanced manage-ment, we are committed to implementing biodiversity protection measures, promoting the conservation of biological diversity, fostering theintegration of green manufacturing and ecological protection, and achieving harmonious coexistence between economic growth and thenatural environment.

Ecological Protection

Resource Utilization Optimization

Handler consistently implements the principles of resource optimization and the circular economy in its daily operations. By enhancing resourceutilization efficiency, continuously improving energy and water management, and actively exploring process innovation, technological advance-ments, and management upgrades, the Company strives to maximize resource efficiency, minimize waste, and enhance overall resourceproductivity.

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

Handler strictly adheres to laws and regulations such as the Energy Conservation Law of the People's Republic of China and the Measures for theAdministration of Energy Conservation of Major Energy-Consuming Entities. The Company has established and implemented the Rational Energy UseManagement System while consistently following the principle of integrating conservation with efficiency, continuously strengthening its energymanagement framework, and adopting multiple energy-saving measures to enhance resource efficiency.

Energy Management

The installation of high-transmittance skylight systems on workshop rooftops optimizes natural daylightutilization, effectively reducing daytime artificial lighting energy consumption.Annual electricity savings: approximately 10,000 kWhWorkshop lighting improvement

The adoption of variable-frequency air compressors to replace existing fixed-frequency units enhancescompressed air supply efficiency while reducing overall electricity consumption.Monthly electricity savings: approximately 6,000 kWh, yearly electricity savings 72,000 kWhAir compressor retrofit

Through production line inspection and rectification of identified leakage points, compressed airsupply loss caused by leaks has been minimized, thereby reducing the energy consumption of the aircompression system.Annual electricity savings: approximately 3,000 kWh

Pneumatic pipeline inspection

The Company will launch the construction of an Intelligent Energy Management Platform (IEMP) to monitor andrecord real-time consumption data of water, electricity, and gas. By aggregating operational data, the systemwill generate comparative performance reports to identify optimization opportunities. Furthermore, variablefrequency logic control (VFLC) mechanisms will be implemented to reduce energy consumption costs.The platform is expected to be completed in 2025, with projected annual energy savings reaching 10,000 kWh.

Intelligent energy management

Handler’s Energy Optimization Management Measures

Handler’s Energy Consumption Profile

IndicatorsUnit2024TonTonStandard cubic meter

MWhtcetce/RMB million revenue

GasolineDieselNatural gasPurchased electricityTotal energy consumptionEnergy consumption intensity

17.25

224.40

386,9344,035.591,105.14

0.694

Handler strictly complies with laws and regulations such as the Water Law of the People's Republic of China, rationally allocates water resources,and optimizes water usage structures. The Company has formulated and implemented the Water Conservation Management System to strength-en water management, actively promote wastewater recycling, treatment, and reuse, reduce water pollution and waste, and effectively improvewater resource utilization efficiency.Upholding the management philosophy of “water conservation, rational use, and efficient utilization”, the Company adheres to the principlesof resource conservation and recycling. All water-related testing facilities are designed and constructed with a focus on circular reuse. Addition-ally, the Company actively carries out water conservation awareness campaigns to enhance employees’ water-saving awareness and eliminatewater waste.

Water Management

Handler has established specialized facilities, including drainage vehicle test pools and rain simulation test benches, in its producttesting zones. The water utilized during the commissioning process is filtered through the circulating water reservoir for reuse,with periodic make-up water replenishment to the reservoir. In 2024, a total of 396 van trucks were subjected to 30-minute waterspray tests per testing requirements. Based on pump flow rate calculations, the average water consumption per vehicle was 67.5cubic meters, resulting in a theoretical annual water usage of 16,730 tons. Accounting for a 10% loss rate, the annual watersavings amount to approximately 15,093 tons.

Implementing reuse of recycled water in product testing areasCase

Rain Simulation Test BenchDrainage Vehicle Water Pump Testing Bench

2627

XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

IndicatorsUnit2024

TonTonTon/RMB million revenue

%

Water consumptionCirculating water consumptionWater consumption intensityAnnual water conservation rate

45,68316,730

28.71

9.58

Handler rigorously implements circular economy principles across its operations, including material management, manufacturing, packaging,and transportation. The Company's primary raw materials include steel, aluminum, electrical components, and hydraulic parts. Productionprocesses encompass cutting, bending, welding, and machining. Throughout the production process, raw materials do not undergo chemicalchanges. Consequently, with the exception of a limited number of components like plastics and sliders, the vast majority of parts can be recycledafter reaching the end of their initial use. Furthermore, the Company has developed the Guidelines for Product Disassembly, Recycling, and Reuseto standardize material recycling practices.

Recycling

Brackets, used as carriers for transporting Type-A outriggers,are widely used both internally and externally. To ensure thesafe transport of Type-A outriggers, the Company hasimplemented a closed-loop tooling recycling process. Productsare stored and transported through the use of material codesand QR codes, which are delivered directly to assembly sitesupon arrival. After components are unloaded, the shelves arere-stacked, collected, and reused for subsequent deliveries.This approach not only avoids the waste of stacking space butalso improves the efficiency of material turnover.

Recycling process for toolingCase

Recycling of Brackets in Production Processes

Handler’s aerial work vehicle superstructures are stored andtransported on reusable shelves. Upon arrival, the goods aredirectly delivered to the workshop. After disassembling thesuperstructures, the racks are returned for reuse insubsequent deliveries, effectively reducing tooling fabricationcosts.

Recycling of aerial work vehicle superstructuresCase

Recycling of Aerial Work Vehicle Superstructures

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.

SOCIAL

SocialUniting Stakeholders forCollective Progress

SDGs addressed in this chapter

Rural Revitalization and Social ContributionsInnovation-Driven Development and Technology EthicsSupply Chain ManagementProduct LiabilityData Security and Privacy ProtectionEmployee Rights and Interests Protection

Rural Revitalization andSocial Contributions

Handler actively aligns with laws such as the Law of the People's Republic of China on the Promotion of Revitalization of Rural Areas and the Law ofthe People's Republic of China on Donations for Public Welfare, fulfilling its social responsibilities as a listed company in the rural revitalizationstrategy through targeted emergency equipment donations and a nationwide emergency service network. In 2024, the Company's ruralrevitalization efforts reached 69 grassroots areas across 25 provinces and municipalities, with a focus on strengthening rural public safety andinfrastructure resilience.

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

To address the shortage of fire equipment in remote regions, the Company established a closed-loop mechanism of “Needs Identification -Targeted Donation - Efficacy Verification”, specifically addressing gaps in rural emergency equipment.In July 2024, Shanghai Grumman, a subsidiary of Handler, donated a PM180 foam fire truck valued at RMB1.1 million to the Leibo County Fireand Rescue Brigade in Sichuan Province. This donation enhanced local emergency firefighting capabilities, safeguarded lives and property,and significantly strengthened the county’s fire emergency response capacity.

Targeted Donation Mechanism

The Company has established a service network integrating preventive maintenance and emergency response capabilities. Its emergencypower generation vehicles, bypass operation vehicles, and other specialized products have been widely deployed in numerous emergencyincidents and preventive power supply operations, participating in various emergency rescue missions.

Nationwide Emergency Service Network

Innovation-Driven Developmentand Technology Ethics

Handler continues to prioritize innovation as the core engine for high-quality development, adhering to a “technology-driven differentiation”strategy and deeply integrating technology ethics into research and development, product iteration, and industrial upgrading. By fosteringnew quality productive forces through innovative momentum, the Company drives the sustainable development of the industry with a strongsense of responsibility. In 2024, the Company achieved significant breakthroughs in high-end core technology research by deepening indus-try-academia-research collaboration, strengthening its intellectual property (IP) portfolio, and optimizing talent development mechanisms.Furthermore, we integrated ethical considerations, such as safety, reliability, and social value, throughout the entire value chain, fromresearch and development to production and service delivery, ensuring an organic alignment between technological innovation and societalbenefits.

As a national high-tech enterprise, Handler actively implements national industrial and economic policies with a clear development strategy.The Company adheres to a business model that prioritizes “R&D innovation as the cornerstone, differentiated design and customization asthe core, flexible manufacturing as the support, and refined services as the guarantee”, focusing on the development of specialized high-endintelligent equipment manufacturing. Driven by both solidifying its domestic market position and expanding its international presence, we aredeeply committed to the intelligent equipment manufacturing sectors of special vehicles, specialized robots, and the military industry.

Innovation-Driven Development

Emergency responseExecuted

127 specialized power protection missionsincluding Emergency drainage equipment support for flood relief efforts withthe Guilin Power Supply Company (Guangxi Province); Emergency power vehi-cle support for flood drainage in Tuanzhou Township, Huarong County (HunanProvince); Power vehicle support for peak load reduction in Chongqing Munici-pality; On-site emergency power generation vehicle support for disaster reliefduring Super Typhoon Yagi in Hainan Province.

In 2024, the Company achieved the following:

Preventive maintenanceCompleted

621 power

equipment inspections across 6 provinces,including Gansu and Jiangxi

achieving

100 %

coverage of key support areas

Special Vehicle SectorProduct portfolio offers diverse structural types, comprehensive categories, and high-alti-tude operational capabilitiesA state-designated enterprise specializing in the R&D, production, and sales of fire trucksand other special-purpose vehiclesSpecialized Robotics SectorA pioneer in specialized robotics development in China, leveraging core technologies and adistinct first-mover advantage

Military Industry Sector

All products are maintained at industry-leading standards within China

Handler

Handler focuses on three core business areas to build a differentiated innovation ecosystem.

The Company strictly adheres to laws and regulations such as the Law of the People's Republic of China on Scienti?c and Technological Progressand the "technology-driven differentiation" development strategy. We have achieved certification for our R&D management system in accor-dance with DB32/T2771-2015 Enterprise R & D Management System Requirements. Besides, we have also established design and developmentcontrol procedures to improve the full-chain innovative management system from basic research to application development and commer-cialization of achievements. The Company has implemented a multi-dimensional collaborative management mechanism covering technologyR&D, product design, and customer service. By emphasizing both technological innovation and ethical constraints, we enhance product corecompetitiveness and industry leadership while ensuring compliance and a commitment to social value in all R&D activities.

R&D MODELR&D-driven innovation as the foundation

Management InnovationProduct InnovationDifferentiated DesignCustomized Development

Differentiated design and customization as the core

Organiza-tionalStructure

Opera-tionalWorkflow

Opera-tionalMecha-nisms

StructuralTechnology

ControlTech-nology

Manufac-

turing

Processes

ThematicResearch

Organi-zationalSupport

CustomerResponse

StrategicSafe-guards

DemandExplora-tion

Integrat-edCustomi-zation

Handler’s R&D Model

Handler’s Certification of Compliance with DB32/T2771-2015Enterprise R & D Management System Requirements

Handler was re-verified as a Jiangsu ProvincialSpecialized and Sophisticated SME in 2024

Handler has developed a series of emergency drainage and rescue equipment solutions,significantly increasing drainage capacity from 500 cubic meters per hour to 6,000 cubic metersper hour. This innovation provides comprehensive solutions for emergency flood control in avariety of urban environments, including roads, underpass tunnels, and underground spaces.Notably, Handler's emergency drainage vehicle was featured in the “2024 Typical Cases forApplication and Promotion of Safety and Emergency Equipment” published by the Ministry ofIndustry and Information Technology (MIIT).

Handler's emergency drainage vehicle recognized by MIIT as a case for application and promotionof safety and emergency equipmentCase

At the bauma CHINA 2024, Handler launched China’s first 64-meter ultra-high aerial work vehicle, integrating intelligent technol-ogies such as obstacle crossing, environmental recognition, and intelligent memory. It is the domestic product with the highesttechnical content and a comprehensive suite of features, filling a significant gap in the domestic market for ultra-aerial workequipment. This product not only improves the operational accuracy of equipment but also adapts to aerial environments underchallenging conditions, providing customers with safe and efficient work tools. It promotes industry advancement throughintelligence and efficiency while fulfilling social responsibilities for safety, emergency response, and sustainable development.

Handler’s first 64-meter ultra-high aerial work vehicle redefined domestic ultra-aerial equipment benchmarksCase

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

Performance Highlights

During the Reporting Period,the Company’s R&D expenditure totaled RMB64,870,200

representing

4.08 % of its operating revenue

As of the end of the Reporting Period,the Company employed120 R&D personnel

representing

15.06 % of its total workforce

This included

64 mid-to-senior engineers

research-grade senior engineers

and

33 senior engineers5 leaders

for Jiangsu Provincial “333 Project” discipline

Xuzhou Municipal Outstanding Talents

1 Xuzhou

Municipal Distinguished Expert1 Jiangsu Provincial First-Batch

Industry Professor

1 member of the National Standardization

Committee for Aerial Work Platformsand

2 members of the Fire Protection Special Committee of the National Standardization Committee

The R&D team's expertise spans a wide range of disciplines, including vehicle engineering, automotive technology, constructionmachinery, mechanical design and manufacturing, hydraulic transmission and control, automation, computer science, informationengineering, materials science, and engineering mechanics. This comprehensive and complementary knowledge base enables thedevelopment of complex, mission-critical projects with world-leading technological capabilities in the industry.

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Three-Dimension

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Handler has established an innovative decision-making system guided by a“technology-driven differentiation” strategy, deeply embedding theprinciple of “doing and forbearing wisely”. By adhering to technology ethicsin R&D, product iteration, and industrial upgrading, we harness innovationto cultivate new quality productive forces and demonstrate industry leader-ship through responsible practices for sustainable development.Through an innovation-driven and techno-ethical collaborative governancemechanism centered on “strategic guidance, process governance, and valuetransformation”, and supported by “talent, capital, and culture”, Handler hasachieved breakthroughs in core high-end technology R&D and importsubstitution. Additionally, the Company integrates ethical consider-ations—including safety, reliability, and social value—throughout the entireR&D, production, and service value chain, ensuring that innovation alignswith ethical principles of security and societal benefit.

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

Techno-Ethical Collaborative Governance

Establishing an innovation decision-making systemunder the “technology-led differentiation” strategy,fostering an industry-academia-research collaborativeecosystem, strengthening IP portfolio management,and optimizing talent recruitment and developmentmechanisms. This consolidates R&D foundations,achieves breakthroughs in intelligent and digitaltechnologies, advances domestic substitution ofhigh-end core components, and elevates productdifferentiation, industry leadership, and societal value.

Strategic guidance (top-level design)

Deepening product and technological innovation witha market demand orientation, precisely identifyingdifferentiated needs in sectors such as leasing andpower through industry-specific research initiatives,and enabling rapid market response via an integrated“R&D-Transformation-Application” innovation system.

Process governance (dynamic control)

Adhering to a product development strategy ofcustomer extension and technology extension, weestablish an agile innovation model where marketdemand feeds back into R&D. By co-building joint labswith key clients to deeply analyze pain points in sectorssuch as power and emergency response, we continu-ously expand our product portfolio through proactivemarket exploration. This enables us to deliver innova-tive integrated solutions that maximize customersatisfaction while driving the advancement ofemergency response industries.

Value transformation (industrial empowerment)

Implementing a three-dimensional framework oftalent-capital-culture synergy. We recruit and cultivatetop technical talent while retaining them to establish atalent pipeline, strengthen financial support throughpolicies such as additional tax deductions for R&Dexpenses, and foster a culture of responsibility viainitiatives such as Quality Month and ethics trainingprograms. This establishes a sustainable developmentparadigm for strategic emerging industries.

Support system

Handler’s Innovation-Driven and Techno-EthicalCollaborative Governance Mechanism

StrategicGuidanceTop-LevelDesignProcess GovernanceDynamic Control

Value TransformationIndustrial Empowerment

Handler has established a dedicated IP strategy, integrating intellectual property into its risk management framework. Through systematicidentification, evaluation, and corresponding control measures—supported by comprehensive and rigorous IP analytics—it mitigates prior-artrisks and prevents infringement liabilities.The Company has the Intellectual Property Management System (IPMS) certification, establishing a forward-looking, efficient, and mature R&Dmechanism with a comprehensive innovation system. This has become a core driver for high-quality development. As a leading or primaryparticipant in drafting national and industry standards for aerial work platforms and vehicles, we consistently pioneer advancements inlightweight design, extended reach, intelligent systems, and insulated live-line working technologies.

Intellectual Property Management

Our IP achievements are outstanding, with patent filings and grants reaching record highs:

Handler’s Invention Patent Certificates (Selected)

As of the end of the Reporting Period,the Company has been awarded2 National Science and Technology

Progress Awards (Second Class)

and5 Provincial/Ministerial Science andTechnology Progress Awardswith an active IP portfolio comprising:

333 valid patents (126 inventions, 191 utility models, 16 designs)

registered software copyrights

PCT-authorized international patents

Performance Highlights

In 2024, the Company developed a tiered intellectual property training system, delivering specialized IP programs for R&D,marketing, and other key functions. With over 80 participants trained, the initiative significantly enhanced the IP competency ofcore employees. This system has effectively reinforced the implementation of the Company's technology-driven differentiationstrategy while substantially strengthening innovation protection capabilities.

Establishing a tiered IP training system to strengthen innovation protection capabilitiesCase

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

The Company is committed to fostering an open and synergistic industrial ecosystem. By actively engaging in industry affairs, standard systemdevelopment, and technological paradigm evolution, we have institutionalized corporate practices into baseline frameworks for sustainableindustry development, driving consensus on responsibility and coordinated actions across the value chain.In recent years, the Company has accelerated its strategic presence in the emergency response sector. In December 2024, the China SafetyIndustry Association convened its 3rd Member Congress in Xuzhou City, Jiangsu Province, where Handler was elected as a Vice Chairman Unitof the newly appointed leadership.

Through active participation in drafting national, industry, and consortium standards and technical specifications, the Company shares itsexpertise to establish industry benchmarks and drive technological advancement.

Collaborative Advancement with Industry Partners

Standardizing Industry Practices

Handler actively engages in industry associations to advocate for sector development, while sharing its experience and achievements at majorindustry events to foster collective progress. Key participation in 2024 included:

Sharing Development Experience

Handler participated in the revision of the Mobile ElevatingWork Platforms—Design, Calculations, Safety Requirements andTest Methods (GB/T 25849-2024)

Handler participated in drafting the Mobile Elevating WorkPlatforms—Operator's Controls—Actuation, Displacement,Location and Method of Operation (GB/T 43601-2024)

2024.4Wuhan International Emergency Safety Expo

2024.6

Guangzhou International Emergency Safety Expo

2024.11bauma CHINA (Shanghai)

2024.11The Fourth Session of the Fourth Member Congress ofthe Decoration and Aerial Work Machinery Branch ofChina Construction Machinery Association (CCMA) andthe 2024 Annual Conference

2024.12

The Third Member Congress of the China Safety IndustryAssociation and High-Quality Development Seminar onSafety and Emergency Industry

Supply Chain Management

3839

XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

Product Liability

In the aerial work vehicle sector, Handler has pioneered a unique business model grounded in "R&D innovation, as the cornerstone, differentiat-ed design and customization as the core, flexible manufacturing as the support, and refined services as the guarantee". Committed to theintelligent equipment manufacturing sector, the Company has established itself as an industry expert and strives to lead as a pioneer in the field.The Company upholds integrity in all operations, positioning itself as an architect of societal well-being. While pursuing professional excellence,we remain dedicated to generating social value through ethical business practices, achieving sustainable synergy between corporate growthand societal advancement.

The Company strictly complies with the Product Quality Law of the People's Republic of China and other relevant laws, regulations, and provisions.Upholding the quality policy of “Service—Timely and Effective, Pursuit—Customer Satisfaction”, we continuously improve our quality manage-ment system and mechanisms based on the Quality Management Systems (GB/T 19001-2016) and the Implementation Rules for CompulsoryProduct Certification – Motor Vehicles (CNCA-C11-01:2020). This comprehensive framework covers all stages, including raw material procure-ment, production control, responsible sales and R&D, and after-sales service, establishing a company-wide, all-encompassing, and end-to-endquality management model. Through this systematic approach, we consistently enhance product and service quality.

Product Quality Management

Product Delivery Satisfaction Target98 %

Customer Service Satisfaction Rate Target98 %

QualityObjectivesCustomer Complaint Resolution Rate100 %

Customer Service Satisfaction Rate≥ 98 %

Implemen-tationStandards

Handler’s Quality Management Objectives and Implementation Standards

Handler strategically prioritizes supply chain management as a cornerstone of corporate development, recognizing that a high-performingsupply chain is fundamental to its sustainable growth. Guided by a win-win philosophy, we maintain equitable partnerships with suppliers of allscales, with particular emphasis on empowering SMEs. Our approach focuses on: Establishing long-term, stable collaborations, streamliningprocurement processes through digital transformation, implementing rigorous supplier evaluation and management systems, and ensuringreliable and efficient raw material supply. Handler actively conducts technical exchanges and collaborates with suppliers. Through initiativessuch as organizing Supplier Annual Conferences, the Company empowers suppliers to enhance production capabilities, collaboratively buildinga more competitive supply chain system to provide a solid foundation for the enterprise’s high-quality development.In 2024, the Company leveraged external expertise to vigorously advance supply chain management consulting. By addressing gaps in market-ing plan accuracy improvement, optimizing planning computation models, enhancing production BOM precision, resolving component qualityissues promptly, strengthening supplier on-time delivery assessments, and improving supplier management capabilities, we systematicallyrevised internal supply chain processes. This initiative focused on proactively identifying and resolving upstream challenges, implementingdesign finalization, cycle time improvement, safety stock management, and vendor-managed inventory (VMI). Additionally, we intensifiedperformance evaluations for suppliers and procurement personnel, achieving significant progress in assembly complete kit rates.

Since its inception, the Company has introduced quality management system standards. By rigorously adhering to third-party certified systemstandards, the Company has refined its quality management organizational structure and established the Quality Management System ControlProcedures. We continuously enhance our end-to-end quality management system covering R&D, production, and service. By defining measur-able quality benchmarks for design, manufacturing, and inspection, Handler achieves full-process quality control from raw material procure-ment to after-sales service, consistently maintaining industry-leading product pass rates.

Quality Management System

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

In 2024, the Company innovatively established a tripartite mechanism – integrating digital empowerment, lean operations, and specializedinitiatives – within its annual quality management enhancement efforts. This framework has transformed quality management practices,shifting from reactive responses to proactive prevention and evolving from localized optimization to system-wide enhancement. It has not onlysignificantly improved product reliability and customer satisfaction but also cultivated a quality-centric, sustainable competitive advantage forthe enterprise.

2024 Quality Enhancement Initiatives

The Company firmly adheres to its three-year strategic development plan, continuously implementing the “technology-driven differentiation”strategy. With technological innovation as the engine and targeted quality enhancement initiatives as the focal point, it integrates strategicobjectives with problem-solving approaches. By systematically advancing five key areas—technological innovation, market expansion, qualityupgrading, intelligent operations, and service optimization—the Company consistently enhances product competitiveness and value creationcapabilities, injecting robust impetus into sustainable development.

2025 Quality Enhancement Directions

Digital Empowerment

Upgrade the ERP system andimplement the MOM project toenhance the integration of IT andindustrial processes in manufac-turing, thereby advancing smartmanufacturing capabilities.

Lean Operations

Deepen the application of leanmanagement principles, establishincentive programs to recognizeand reward employee-driven quali-ty improvements, and foster acompany-wide culture where“every employee champions quali-ty”.

Specialized Initiatives

Implement targeted qualityenhancement programs for keyproducts, using the insulated vehi-cle project as a model. Formcross-departmental quality taskforces to strengthen full-lifecyclequality control, spanning fromproduct design to after-salesservice.Handler’s 2024 Quality Management Enhancement Mechanism

Handler’s 2025 Quality Enhancement Directions

Concentrate on break-throughs in core tech-nologies and bolster-ing R&D capabilities.

Increase R&Dinvestment

Deepen key marketexpansion and busi-ness structure optimi-zation.

Strategic MarketPositioning

Conduct supply chainmanagement consul-tations and drive theimplementation ofsmart manufacturingprojects.

Smart Operations

Transformation

Focus on resolvingcritical issues andimproving van prod-uct quality.

Specialized

QualityEnhancement

Program

Strengthened After-market Services andBusiness Model Inno-vation.

Enhanceservice value

Handler regards customer rights protection and service innovation as core drivers of sustainable development. Upholding the business philoso-phy of “Committed to Customer Success”, the Company adheres to a product development strategy centered on “customer and technologyextension”. This approach ensures products and services closely align with customer needs while continuously upgrading intelligent servicecapabilities to create additional value and cultivate new market opportunities. We strive to balance economic prosperity, social progress, andenvironmental stewardship to foster harmonious and sustainable growth.To safeguard customer equity, the Company strictly adheres to legal and ethical business practices, establishing a long-term strategic partner-ship ecosystem with suppliers and customers. Leveraging a flexible model of “Customized Production + Predictive Mass Production”, we ensurepersonalized delivery while enhancing resource utilization efficiency, achieving industry-leading reductions in customer lead times. Additionally,the Company integrates social responsibility into service practices, conducting regular customer training and safety supervision to ensureproducts comply with national safety standards throughout their life cycles. Intelligent monitoring technologies are employed to mitigateequipment operation and maintenance risks, ensuring the harmonious advancement of customer rights protection and sustainable develop-ment goals.

Customer Rights and Services

The Company has proactively established a “15-minute response + 5-hour onsite arrival” itinerant after-sales service mechanism. Leveraging anationwide technical service network and digital coordination platform, we provide customers with sustained technical support and faultresolution beyond standard warranty periods, delivering on the commitment of “zero-distance service, 24/7 protection”.Under the direct management of the Technical Service Center, the Company operates eight dedicated service centers in Xuzhou, Shijiazhuang,Guangzhou, Xi'an, Nanjing, Nanchang, Quanzhou, and Kunming, complemented by 12 mobile service stations. This multi-tiered service networkof 20 strategically located nodes ensures nationwide coverage with a guaranteed 5-hour onsite arrival window for after-sales service.

After-sales Services

HotlineHandler ServiceOfficial Account

WeChat Video

EmergencyoperationVideo Resources15-MINUTERESPONSE

HeadquartersExpertsTechnical Center

ServiceSpecialistsServiceStations5-HOURONSITE ARRIVAL

Handler’s “15-Minute Response + 5-Hour Onsite Arrival” Proactive Itinerant After-Sales Service Mechanism

Handler’s Responsible Marketing Management

The Company has established a comprehensive responsible marketing management system that spans the entire marketing process. Thissystem ensures the compliance and transparency of all marketing activities through a framework of institutional controls, process management,and technology empowerment, in strict accordance with laws and regulations such as the Advertising Law of the People’s Republic of China and theAnti-Unfair Competition Law of the People’s Republic of China, and other relevant regulatory requirements.

Responsible Marketing

The Company's policies and proce-dures strictly prohibit false advertising,exaggerated claims, and fraudulentbidding activities.All product features and data must besubstantiated by official test reportsfrom accredited authorities.

Implement a Three-Tier Review andApproval Process: Idea Generation –Copywriting – Release.Establish standardized customerprofile management and contractinformation access protocols.

Leverage AI platforms to automaticallydetect and flag non-compliant terms(e.g., superlatives like “best”, “first”, orexaggerated claims such as “100%effective”). Implement trigger mecha-nisms for immediate removal ofcontent containing prohibitedkeywords, ensuring real-time compli-ance.

Policy ConstraintsProcess GovernanceTechnology Empowerment

The Company adheres to the “Customer-First” service concept, continuously improving service response speed and quality through three keyinitiatives: building a nationwide service network, strengthening professional team construction, and promoting digital service transformation.

Customer Satisfaction Enhancement

Service networkdevelopmentThe Company has optimized its nation-wide network of agents and mainte-nance hubs, launching industry-wideservice outreach campaigns such as“Service Tour for the Leasing Industry”.By offering value-added services likecomplimentary filter replacements andwear-and-tear parts, customer experi-ence has been significantly enhanced.

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

Service capabilityenhancement

The Company has innovatively imple-mented a “One-on-One Mentorship”training program, complemented by atechnician skill certification system andregular technical workshops, to culti-vate a high-caliber service team.

Employee Rights and Interests Protection

A high-caliber talent pool serves as the cornerstone for Handler to sustain rapid growth and maintain its core competitiveness. Handler strictlycomplies with labor and social security laws and regulations, including the Labor Law of the People's Republic of China, the Labor Contract Law ofthe People's Republic of China, and the Social Insurance Law of the People’s Republic of China. Guided by a people-centric philosophy, the Companyadvocates the style of "honest man, and earnest work". We are dedicated to upholding employee rights and interests, promoting equitableemployment practices, and ensuring transparent career advancement opportunities for all employees, fostering a fair environment for profes-sional development. Furthermore, we actively support employee well-being through a variety of initiatives designed to enhance job satisfactionand promote a harmonious balance between corporate objectives and individual aspirations, ultimately maximizing both employee and organi-zational value.

Service digitaltransformation

The Company has developed a smartAPP offering features such as real-timeparts inventory inquiry, self-diagnosis,and automated troubleshooting, lead-ing to significant improvements inservice efficiency and customer experi-ence.

In 2024,the Company’s service satisfaction rate reached

99.09 %, hitting a record high and fully demonstrating the outstanding efficacy of its service system.

Performance Highlights

In 2024,the Company experienced

0 data security incidents

and

0 customer privacy breaches.

Performance Highlights

Data Security and Privacy ProtectionHandler is committed to upholding data security and privacy and strictly adheres to laws and regulations such as the Cybersecurity Law of thePeople's Republic of China, the Personal Information Protection Law of the People's Republic of China, and the Data Security Law of the People'sRepublic of China, as well as other relevant regulatory requirements. In alignment with its information security management system, the Com-pany has established institutional frameworks that govern the entire data lifecycle. These frameworks standardize operational criteria andprocedures for critical stages, including data collection, storage, transmission, and destruction. Furthermore, the Company employs technicalsafeguards such as data masking and encrypted transmission to comprehensively implement a robust protection system, ensuring informa-tion security, data integrity, and privacy.

Handler prioritizes the protection of employee rights and interests by maintaining lawful and compliant employment practices and standardizedlabor policies. The Company champions equal employment opportunities, cultivating a diverse workforce and fostering a work environment freefrom discrimination, retaliation, harassment, and any form of abuse. Handler strictly prohibits child labor and rejects all forms of forced orcompulsory labor. The Company diligently implements regulations concerning maternity and lactation leave, safeguarding the rights of femaleemployees during pregnancy and the postpartum period.The Company consistently optimizes its workforce composition to ensure a balanced representation of gender, age, and educationalbackground, thereby cultivating a truly diverse and inclusive workplace. As of the end of the Reporting Period, the Company employed a total of797 individuals.

Employee Rights and Interests and Well-being

EmployeeProfessionalComposition

Structure

47.05%

12.05%

14.81%

2.63%

23.46%

Production staffSales staffTechnical staffAdministrative staffFinance staff

EmployeeEducationalAttainmentStructure

29.36%

29.49%

3.76%

37.39%

Master's degree or higherBachelor's degreeJunior collegeOther

EmployeeStructureby Gender88%

12%

MaleFemale

Employee

Structure

by Age69%

15%16%

Under 3030-50Above 50

In 2024, Handler continued to strengthen team and talent development, establishing robust mechanisms for talent cultivation, recruitment, andinternal mobility. The Company has implemented a competitive total rewards system that balances short-term incentives with long-term valuecreation, complemented by a performance management and incentive framework designed to continuously optimize its human capital.

Employee Rights and Interests Protection

Foster anemployee rightsprotectionmechanismthat balances

equity and incentives

Ensure fair and competitive compensationthrough value assessment and market bench-marking.

Compensation Management Framework

Develop scientific position grading and salarycurves using the IPE4 tools.Position Value Evaluation

Align performance with compensation throughgoal setting and feedback mechanisms.

Performance Management System

Activate organizational vitality through differ-entiated incentive programs.

Incentive mechanism

Handler’s Employee Rights and Interests Protection System

The Company employs a “Value Assessment – Compensation Benchmarking – Dynamic Adjustment” approach toensure employees receive fair, competitive, and performance-based compensation.

Compensation management system

The Company utilizes the innovative IPE4 methodology, combined with regression analysis, to construct a scientificjob architecture and compensation structure. This ensures internal equity across diverse roles, including manage-ment, technology, production, and sales, while maintaining external competitiveness through regular industrycompensation surveys.

Position value evaluation

Handler has established a robust, full-cycle performance management system based on “Goal Setting – ProcessManagement – Performance Feedback”. This system promotes a high-performance culture by deeply integratingdepartmental and individual performance indicators within a structured management framework. The frameworkincorporates an annual cycle of objective setting, mid-year progress reviews, and comprehensive year-end evalua-tions, enabling a clear and direct linkage between performance outcomes and compensation adjustments. Thissystem underscores Handler's commitment to recognizing the value of employee contributions and effectivelyfosters organizational vitality through differentiated incentives, providing a strong foundation for sustainabledevelopment.

Performance management system and incentive mechanism

In August 2023, while formulating its three-year strategic development plan, Handler launched a new restricted stock incentive plan, granting

20.8 million restricted shares to 80 eligible participants. On September 20, 2024, Handler’s Sixth Board of Directors and Sixth Board of Supervi-

sors convened their respective fifth meetings to review and approve the Proposal on the Ful?llment of Conditions for the First Vesting Period of theInitial Grant of the 2023 Restricted Stock Incentive Plan. The vesting registration was completed on October 16, 2024, granting a total of 6.656million shares to 80 employees. Furthermore, on August 13, 2024, Handler granted 4.16 million Type II restricted shares to 23 eligibleparticipants at an issue price of RMB1.93 per share. By implementing equity incentive plans, Handler enhances its long-term incentive mecha-nisms, attracting and retaining top talent, fully engaging its workforce, and enabling employees to share in the benefits of the Company'ssustainable growth. This effectively aligns the interests of shareholders, the Company, and core team members, focusing all stakeholders on thelong-term success of Handler and the achievement of its strategic and operational objectives.Handler is dedicated to providing a diverse and comprehensive employee benefits program that addresses the economic, material, andhealth-related needs of its workforce. Handler’s well-structured benefits program not only enhances employee satisfaction and organizationalperformance but also fosters long-term sustainable human capital, thereby underscoring its role as a socially responsible corporate leader.Employee Benefits Guarantee

Legal RightsProtection DimensionEstablish statutory social securitysystem (Six Insurances and TwoFunds).

Quality of LifeAssurance Dimension

Address employee housingneeds through innovative solu-tions, including interest-freehome loans and housing subsi-dies.Comprehensive Support System(Catering & Transportation)

Humanistic CareDimension

Establish an Employee HealthManagement Program withannual physical exams, unionactivities, and holiday allowanc-es.

Handler’s Employee Benefits System

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

Handler recognizes employee development and growth as essential to its long-term success. The Company offers equitable and diversedevelopment opportunities and targeted training programs, enhancing the “management and professional” dual-career path system. Astructured talent cultivation and succession management framework safeguards employee career development rights while adhering toprinciples of fairness and sustainability. Handler promotes employee competitiveness and strengthens its talent pipeline through a dual-trackapproach of “academic advancement + skills certification”. This systematic approach to talent development ensures a positive synergy betweenindividual growth and organizational advancement, providing a solid foundation for sustainable development.

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Handler places a high value on employee personal growth and career advancement. To meet the diverse learning needs of itsemployees, Handler actively encourages participation in academic improvement programs, skill enhancement training, andprofessional certification initiatives, with the goal of building a high-quality and professional workforce.Each year, Handler provides a number of fully-funded postgraduate training opportunities, offering valuable learning opportuni-ties for employees seeking to further their education. In addition, the Company provides strong support for employees whoindependently pursue academic or skills-based training in their professional fields. Upon successful completion of studies andcertification, employees are eligible for reimbursement of 50% of their tuition fees.

Encouraging employee skill enhancement to strengthen organizational talent reservesCase

Employee Development and Training

Handler prioritizes work safety above all else. In strict compliance with applicable laws and regulations, including the Work Safety Law of thePeople’s Republic of China, the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases, and the Measures for theAdministration of Contingency Plans for Work Safety Accidents. the Company implements robust internal management procedures, such as theWork Safety Management System and the Environmental and Occupational Health and Safety Performance Monitoring and Control Procedures. Thiscommitment ensures a globally aligned and standardized safety and occupational health management system. Through the systematicallocation of responsibilities, implementation of science-based risk prevention and control measures, and the promotion of a company-widesafety culture, Handler strives to enhance the precision and effectiveness of its workplace safety management, aiming to provide a safe andhealthy working environment for all employees and to establish a benchmark for safety management within the industry.

Occupational Health and Safety

Demonstrating its commitment to international best practices, Handler achieved alignment with international standards as early as 2009. TheCompany maintains effective operation of its ISO 45001 Occupational Health and Safety Management System certification. A multi-tiered safetymanagement structure is in place, closely aligned with annual work safety objectives. Safety responsibility agreements are signed at eachmanagement level, clearly defining responsibilities and accountability. Furthermore, the Company has optimized its full-cycle safety manage-ment system in accordance with the Work Safety Management System.

Safety Management System

StrategicPrioritization

Embedding safety accountability from strategic decision-making to frontline execution, with continuous manage-ment system optimization

Implement

risk-tieredmanagement

Dynamic hazard identification, assessment, and monitoring

Handler’s Safety Management System

EnhanceManagement

Systems

Innovatively integrate Heinrich's Law and the 'Four No-Overlook' Principle to strengthen root-cause governance.Establish a full-cycle safety management closed-loop system (Prevention - Response - Improvement), including:

near-miss incident traceability and analysis mechanisms, dynamic hazard control and accountability clarificationmechanisms, five-dimensional inspection protocol, regularized safety training mechanisms.

Individual

Safety

Account-

ability

Achieve vertical penetration and horizontal collaboration of safety responsibilities through cmprehensive safetyresponsibility checklists, Risk-tiered control mechanismsEnforce a multi-level safety accountability system with signed safety responsibility agreements at all levels.

Continuous

Improveme

nt ThroughCyclical Enhancement

Five-dimensional Inspection MechanismMulti-level Safety Training & Organization-wide Safety Culture Development

Handler consistently prioritizes employee occupational health management. In strict accordance with the Law of the People’s Republic of China onthe Prevention and Control of Occupational Diseases and other relevant regulations, the Company integrates occupational health risk identificationinto its safety management processes. The Company has established a comprehensive occupational health management system that includesvarious safety training programs and hazard identification initiatives. Additionally, we also organize diverse health education seminars andtargeted medical check-ups while continuously optimizing workplace environments and working conditions to safeguard the overall health,safety, and well-being of our employees.

Occupational Health Practices

GovernanceUpholding Prudent Operationsto Safeguard EnterpriseDevelopment

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.

GOVERNANCE

SDGs addressed in this chapter

Corporate GovernanceSustainable Development Governance MechanismsBusiness ConductCompliance and Risk Management

Corporate Governance

Handler is committed to sound corporate governance principles, adhering strictly to all relevant laws and regulations. The Company hasestablished a well-defined “Three Committees and One Tier” governance structure (Shareholders’ Meeting, Board of Directors, SupervisoryBoard, and Senior Management), ensuring efficient and effective governance mechanisms. Furthermore, the Company prioritizes transparentinformation disclosure and proactive engagement with investors, protecting shareholder rights and building a robust foundation for sustain-able growth.

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Handler operates in full compliance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, andthe Code of Corporate Governance for Listed Companies. The Company’s governance framework, centered on the “Three Committees and OneTier” structure, is formalized through the Articles of Association of Xuzhou Handler Special Vehicle Co., Ltd., and related internal regulations.Through effective collaboration among the Shareholders’ Meeting, Board of Directors, Supervisory Board, and senior management, Handlerhas established a governance system characterized by clear delineation of responsibilities, mutual checks and balances, and robust accountabil-ity. To further enhance governance effectiveness, the Company has established three special committees under the Board of Directors: theStrategy Committee, the Remuneration and Appraisal Committee, and the Audit Committee. These committees provide multi-faceted supportfor key decision-making processes, strengthening the scientific rigor, foresight, and strategic alignment of board decisions.

Governance System

During the Reporting Period,Handler held the following meetings:

3 Shareholders’ Meetings

Annual General Meeting

Board of Directors Meetings

Remuneration and Appraisal Committee Meetings

Audit Committee Meetings

and

11 Supervisory Board Meetings

and

2 Extraordinary General Meetings

Performance Highlights

Handler’s Board of Directors strictly adheres to the principles of meritocracy, diversity, and inclusion in the director selection process. Directorcandidates are rigorously selected based on the Company's strategic objectives and practical operational needs. The Company comprehensivelyassesses candidates’ age, educational background, professional expertise, and industry experience to ensure a diverse board composition thataligns with business requirements, broadens decision-making perspectives, and enhances board effectiveness and executive capabilities.The Board of Directors consists of 9 members (including 3 female directors), with 3 independent directors. Board members include professionalswith expertise in finance, law, and corporate management, possessing the knowledge, skills, and qualities necessary to effectively perform theirduties and provide strategic oversight.

Board of Directors Composition

Handler maintains a Board Remuneration and Appraisal Committee (comprising three directors), governed by the Implementation Rules of theBoard Remuneration and Appraisal Committee. This structure establishes a robust and equitable framework for evaluating and compensating thedirectors, supervisors, and senior management.In April 2024, Handler’s commitment to standardized compensation practices was further demonstrated through the review and approval of theProposal on the 2024 Remuneration Plan for Directors, the Proposal on the 2024 Remuneration Plan for Supervisors, and the Proposal on the 2024Remuneration Plan for Senior Management. Directors: Compensation is determined based on a combination of industry benchmarks, regionaleconomic performance, and specific company performance. Supervisors: Compensation is based on position, years of service, and performanceassessment outcomes. Senior Management: Compensation includes a base salary, annual performance bonuses, and performance-basedincentives tied to specific responsibility agreements.

Remuneration Governance for Directors, Supervisors, and Senior Management

Remuneration Decision-Making Processes and Determination Basis for Directors, Supervisors, and Senior Management:

Remuneration Decision-makingprocedures for Directors,Supervisors, and Senior Management

The compensation of directors and supervisors is decided bythe General Meeting of Shareholders.The compensation of senior management is decided by theBoard of Directors.

Remuneration DeterminationBasis for Directors, Supervisors,and Senior ManagementRemuneration is determined based on the Company'sprofitability, as well as the division of responsibilities andperformance of directors, supervisors, and senior manage-ment. Performance indicators are evaluated by theRemuneration and Appraisal Committee.

Handler places a high priority on protecting shareholder rights and interests. In strict compliance with laws and regulations, including theCompany Law of the People’s Republic of China and the Securities Law of the People's Republic of China, as well as the provisions outlined in theArticles of Association, Handler promotes standardized operations, safeguards the Company’s overall interests, and protects the legitimate rightsand interests of all shareholders, with particular attention to minority shareholders.To strengthen shareholder rights and interests, Handler’s Articles of Association include specific clauses on shareholders' right to information.The Company also facilitates minority shareholder participation in corporate governance through online voting at shareholder meetings. Theseinstitutional arrangements not only guarantee democratic and transparent decision-making but also enhance the influence of minorityshareholders on major corporate decisions.

Protection of Shareholder Rights and Interests

Handler adheres to the Company Law of the People’s Republic of China, the Securities Law of the People's Republic of China, the Work Guidelines forthe Investor Relations Management of Listed Companies, the Measures for the Administration of Information Disclosure by Listed Companies, and theRules Governing the Listing of Stocks on ChiNext of the Shenzhen Stock Exchange. Consistent with these regulations and the Company's specificcircumstances, Handler has established the Information Disclosure Management System, the Internal Reporting System for Major Information, andthe Registration and Management System for Insiders of Inside Information. These systems are designed to standardize information disclosurepractices, enhance the management of information disclosure, and protect investors’ right to know and other legitimate rights and interests.The Chairman of the Company has ultimate responsibility for information disclosure. The Secretary of the Board of Directors, as the primaryperson in charge of information disclosure, manages all related affairs. The Company’s Securities Department, under the direct leadership ofthe Secretary of the Board of Directors, handles the daily management of information disclosure. Key components of Handler’s informationdisclosure include regular reports (Annual Report, Interim Report, and Quarterly Report) and ad hoc announcements (e.g., Resolutions of theBoard of Directors, Resolutions of the Supervisory Board, Resolutions of Shareholders' Meetings, and Significant Event Notices).In 2024, Handler made a total of 179 disclosures, ensuring that all information disclosures throughout the year were legal, compliant, and freefrom any false records, misleading statements, or material omissions.

Information Disclosure

Handler is committed to maintaining strong investor relations by adhering to all relevant laws, regulations, and the provisions outlined in itsArticles of Association. The Company has established the Investor Relations Management System to standardize and enhance these activities. TheCompany’s investor relations are structured with the Secretary of the Board of Directors overseeing investor relations management. TheSecurities Department functions as the operational unit, responsible for the daily management of investor interactions.In addition, Handler has established diversified communication channels with investors. Through a multi-level and comprehensive communica-tion system, the Company ensures timely and transparent two-way communication regarding critical information, including developmentstrategy, business results, and R&D advancements.

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Investor Relations

During the Reporting Period,Handler addressed

102 inquiries through the EasyIR platform

hosted6 investor exchange meetings

and conducted

2 online performance briefings

Performance Highlights

Legal Disclosure ChannelsTimely release of significant infor-mation through regular reportsand ad-hoc announcements.

InteractiveCommunication Platforms

Integration of offline events suchas shareholder meetings andinvestor exchanges, and onlinechannels including performancebriefings, the EasyIR platform, anddirect telephone consultations.

Proactive Engagement Mechanisms

Active participation in industryevents such as brokerage strategymeetings to proactively communi-cate the Company's value proposi-tion.Handler’s Diversified Investor Communication Channels

Sustainable DevelopmentGovernance Mechanisms

Guided by a strong commitment to sustainable development, Handler integrates these principles into its core corporate strategy and businessoperations. The Company aims to create long-term, sustainable value for all stakeholders by deepening its ESG management practices andcontributing to high-quality, sustainable economic and social development.

Handler is dedicated to implementing national strategic objectives by deeply embeddingsustainable development principles into all facets of its corporate governance and operations.Taking a dual domestic and international perspective, Handler leverages scientific andtechnological innovation as its primary driver, supported by advanced manufacturing capabil-ities and guided by a commitment to green development. This approach enables the Compa-ny to build a dynamic management system that fosters the coordinated advancement of ESGfactors. By integrating stakeholder needs with the evolving requirements for new qualityproductive forces, Handler is building a sustainable development ecosystem that generatesboth economic benefits and social value.The Company has established a “Four-Dimensional Synergy” sustainable developmentpractice system, implementing corporate sustainable development from four aspects:

differentiated competition, digital-intelligent transition, human-centric development, andgreen development, to enhance its core competitiveness.

Sustainability Strategy Implementation

Handler’s Four-Dimensional Synergy Framework

for Sustainable Development Practices

DifferentiatedCompetitionGreenDevelopment

Digital-IntelligentTransitionHuman-CentricDevelopment

Differentiated competition

Handler is committed to a sustainability strategy centeredon “technology-driven differentiation”. The Companyactively shapes industry standards by leading, significantlycontributing to, or participating in the drafting of nationaland industry standards for products such as aerial workvehicles, aerial work platforms, power supply vehicles,distribution vehicles, and fire trucks.

Digital-intelligent transition

Human-centric developmentGreen development

Handler actively pursues sustainable development byleveraging the Fourth Industrial Revolution and accelerat-ing its transition to intelligent, digitally-driven manufactur-ing processes. The Company enhances efficiency throughproduction line upgrades and intelligent transformation ofkey flexible production processes, accelerates the develop-ment of smart manufacturing, and promotes a service-ori-ented manufacturing model through digital and intelligenttechnologies.

By continuously refining its organizational structure,enhancing incentive mechanisms, and investing in talentcultivation and team building, Handler supports its innova-tive trajectory.

Handler explores innovative green development pathways,developing products such as aerial tethered UAV fire trucksthat reduce water consumption by over 50%, mobile energystorage vehicles with peak-shaving and valley-fillingcapabilities, streetlight maintenance vehicles equippedwith solar panels, and is advancing the development oflow-energy alternatives such as hydrogen-poweredgenerators.

Business ConductHandler is dedicated to strengthening its business ethics management system, placing integrity and compliance at the heart of its operationalprinciples. The Company promotes a fair and competitive market by rigorously regulating business conduct through robust anti-bribery andanti-corruption mechanisms. Upholding accessible reporting channels, we firmly oppose all unethical practices and are committed to fosteringa trustworthy, transparent, and sustainable business environment.

Handler strictly adheres to a comprehensive suite of laws and regulations, including the Criminal Law of the People’s Republic of China, the Compa-ny Law of the People's Republic of China, the Oversight Law of the People’s Republic of China, the Law of the People's Republic of China on AdministrativeDiscipline for Public O?cials, and the Regulations on Integrity in Professional Conduct for Leaders of State-Owned Enterprises. The Company hasestablished a multi-dimensional, collaborative oversight system to enhance anti-corruption management. By establishing cross-departmentalcollaboration mechanisms, Handler effectively consolidates oversight resources, creating a closed-loop supervision system encompassingpre-emptive prevention, in-process control, and post-event accountability, thereby continuously improving the effectiveness of compliancemanagement.Handler’s anti-corruption practices include signing Enterprise Cooperation Integrity Agreements with relevant parties and securing EmployeeIntegrity Commitment Letters from 205 employees. These agreements encompass senior executives, marketing and sales personnel, after-salesservice staff, procurement directors and personnel, R&D directors and designers, finance directors and deputy directors, general managementdirectors and deputy directors/office directors and equipment safety officers, and information technology personnel.

Anti-Corruption and Integrity Building

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

Handler maintains a zero-tolerance stance against corruption, implementing dedicated integrity risk preventioninitiatives in key operational areas such as procurement and marketing. The Company operates a robust procurementbidding management system, empowering all employees and bidders to monitor the bidding and implementationprocesses. Any irregularities discovered can be directly reported to the General Manager. The Audit Department isresponsible for preparing special reports and addressing any abnormal issues arising during the bidding process.

Anti-Corruption Risk Management

Handler conducts regular internal anti-corruption inspections, strengthens daily oversight through various means, andutilizes a closed-loop management mechanism of “inspection - rectification - accountability”. For violations, the Compa-ny applies a tiered approach, using measures such as interviews, education, rectification, and accountability, based onthe severity of the circumstances.

Anti-Corruption Oversight and Inspections

Handler views integrity education as a cornerstone of its anti-corruption efforts, providing a comprehensive anti-cor-ruption training program that covers all employees, with an emphasis on key positions. Through systematic andongoing training, the Company cultivates a strong ethical foundation, equipping all employees to resist corruption.During the Reporting Period,

Integrity Education and Training

Handler conducted

2 integrity training sessions

reaching

205 participants

The Company firmly monitors the entire process of supplier corruption, requiring suppliers to sign integrity commit-ment letters and incorporating these into their performance evaluations. A blacklist system for non-compliant suppliershas been established, along with hierarchical disciplinary measures, to uphold a fair and competitive market environ-ment and ensure the healthy and stable operation of the supply chain.

Supplier Integrity Management

Handler consistently adheres to laws and regulations, including the Anti-Unfair Competition Law of the People’s Republic of China and the Anti-Mo-nopoly Law of the People's Republic of China, to regulate its business activities and employee conduct. The Company firmly opposes unfair compe-tition practices such as false advertising and trade secret infringement, striving to maintain a fair, just, and transparent market competitionenvironment.According to internal policies, Handler requires all employees to uphold the principles of integrity and legality in all business activities. In market-ing, the Company adheres to the fundamental principles of integrity and transparency, strictly guaranteeing the authenticity and accuracy of allmarketing information while prohibiting the dissemination of any false or misleading information. Employees are clearly instructed to obtainbusiness opportunities through fair and legal competition, with strict prohibitions against winning business through improper means such asoffering undue benefits. Furthermore, Handler prohibits employees from exchanging competitively sensitive information, such as productprices and costs, with competitors, illegally obtaining competitors' confidential information, or maliciously spreading false information aboutcompetitors or other products and services, to ensure the fairness and impartiality of market competition.

Anti-Unfair Competition

In order to maintain the Company's good business order and the legitimate rights and interests of employees, Handler continuously optimizesthe management process for whistleblowing acceptance and investigation, ensuring that all types of violations can be promptly and effectivelyaddressed.In practice, the Company ensures that reported issues are promptly escalated to relevant departments through clearly defined accountability atall levels. Investigations are conducted with impartiality and objectivity to ensure the accuracy and authority of the findings. Furthermore,Handler places high importance on whistleblower protection, strictly keeping whistleblowing information confidential and safeguardingwhistleblowers’ legitimate rights and interests, fostering an honest and upright corporate environment.

Compliance and Risk Management

Handler places a high priority on compliance and risk management, establishing a comprehensive compliance management system tostrengthen its compliance culture and enhance employee awareness. Furthermore, the Company rigorously adheres to relevant regulations,refining its risk management and internal control systems by establishing multi-layered safeguards for precise risk mitigation. By optimizinginternal control processes, we ensure sustainable corporate development.

Handler prioritizes compliance management by establishing a comprehensive, multi-tiered compliance management system designed for theaccurate identification, timely alerting, and effective mitigation of compliance risks, thereby fundamentally preventing the occurrence of variouscompliance breaches. Building upon existing structures, the Company continuously optimizes and strengthens compliance through enhancedmechanisms for review, reporting, corrective action, whistleblowing, and accountability. These improvements ensure effective policy enforce-ment and comprehensive compliance integration across all business operations. Personnel in high-risk roles and critical functions are requiredto sign mandatory compliance pledges, reinforcing accountability and clarifying responsibility boundaries, thereby promoting the establish-ment of a long-term compliance management mechanism.Recognizing that a compliance culture is pivotal for sustainable corporate development, Handler places a high priority on employee compliancetraining, offering diversified training programs to enhance employee awareness and professional competence. The Company actively promotesand practices a compliance philosophy involving all employees, fostering a culture of proactive and self-driven compliance, embedding compli-ance values deeply within the organization and establishing a solid cultural foundation for high-quality corporate growth.

Compliant Operations

Handler attaches great importance to risk management and actively constructs a robust risk management and internal control system. Throughmulti-tiered safeguards with full-process penetration, the Company implements precision risk mitigation to maintain risks within acceptablethresholds, thereby ensuring sustainable corporate development.Handler prioritizes enhancing internal controls. During the Reporting Period, the Audit Department finalized the Internal Control Manual, whichclarifies and standardizes internal control standards and operating procedures. Furthermore, the Company continuously conducted audit work,completing over 30 audit projects covering key areas such as sales, procurement, and production at headquarters, subsidiaries, and affiliatedcompanies. We continuously tracked and inspected the rectification of issues raised in audit reports, continuously optimizing existing internalcontrol management processes, and strengthening the control of risk points. Moreover, we implemented systematic internal control evalua-tions to comprehensively assess the design and operational effectiveness of controls, mitigating compliance risks and enhancing oversight incritical areas.

Risk Management

Reporting Mechanism

Handler has established a comprehensive communication and complaint mechanism, allowing employees to submit opinions and suggestionsto department leaders and supervisors in charge. Additionally, a parallel supervision mechanism is in place, enabling employees to reportpersonal opinions, suggestions, and complaints to the General Management Department, and Audit Department in accordance with relevantregulations.To ensure unimpeded and convenient reporting channels, Handler provides multiple avenues, including dedicated email addresses, hotlines,secure drop boxes, and face-to-face consultations, to safeguard whistleblowers and facilitate secure and efficient disclosure of concerns.Dedicated personnel are assigned to receive and handle whistleblowing information, regularly summarizing and forming work records, andconducting timely analysis, research, and disposal to ensure efficient resolution of whistleblowing matters.

Reporting Channels

To effectively safeguard whistleblowers' legitimate rights and interests and create a conducive supervision environment, Handler activelyimproves its whistleblower protection mechanism. The Company prioritizes the confidentiality of whistleblower information, implementingstringent measures to protect reporters' identities and the information they provide. Access to this information is strictly limited to authorizedpersonnel to prevent leakage or dissemination. During the handling of whistleblowing matters, all involved staff and other relevant personnelare required to strictly follow the work procedures, properly keep whistleblowing materials, and are strictly prohibited from disclosing theidentities of whistleblowers and the content of whistleblowing matters to the reported parties and other irrelevant personnel.Furthermore, Handler explicitly prohibits any form of retaliation against whistleblowers, categorizing such acts as severe violations of corporatepolicy. For acts of retaliation causing adverse consequences, Handler will initiate accountability investigations in accordance with laws andregulations, imposing disciplinary sanctions commensurate with the severity of the offense, thereby safeguarding whistleblowers' legitimaterights and ensuring the integrity, effectiveness, and fairness of the reporting mechanism.

Whistleblower Protection

During the Reporting Period, Shanghai Grumman conducted 12 compliance training sessions, covering 172 participants with atotal duration of 20 training hours. The training program included the dissemination of the Risk Assessment Guidelines forEquipment Procurement Contract Performance and Quality Management System and Quali?cation Supervision Requirements forEquipment Manufacturers, as well as legal education and training, including the prevention of enterprise secret risks and theGovernment Procurement Law.

Shanghai Grumman Employees’ Compliance TrainingCase

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

Economic performance

IndicatorsUnit 2024RMB100 millionRMB100 millionRMB/shareRMB100 million%RMB100 million

Operating revenueNet profit attributable to the shareholders of

the listed company

15.91

2.24

0.23

25.81

15.59

1.06

Environmental performance

tCO?eTonTonStandard cubic meter

MWhtcetce/RMB million revenue

TonTonTonTonTonTonTonTonTon

Total GHG emissions

Gasoline

DieselNatural gas

Purchased electricityTotal energy consumptionEnergy consumption intensityNitrogen oxides (NOx) emissionsSulfur dioxide (SO

) emissionsParticulate matter (PM) emissionsVolatile organic compounds (VOCs) emissions

Total wastewater dischargeAmmonia nitrogen emissionsChemical oxygen demand (COD) emissionsBiochemical oxygen demand (BOD) emissions

Total phosphorus (TP) emissions

17.25

224.40

386,9344,035.591,105.14

0.694

0.58

0.144

0.324

0.237

11,500

0.18

2.22

1.1

0.024

ESG Performance Overview

Appendices

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

Environmental performance

TonTonTonTon/RMB million revenue

TonTonTon/RMB million revenue

TonTonTon/RMB million revenue

%RMB10,000SessionsPersonsHours

Suspended solids (SS) emissionsTotal hazardous waste generatedTotal hazardous waste disposedHazardous waste discharge intensityTotal non-hazardous waste generatedTotal non-hazardous waste disposedNon-hazardous waste discharge intensity

Water consumptionCirculating water consumptionWater consumption intensityAnnual water conservation rateTotal environmental protection investmentNumber of environmental training sessionsNumber of environmental training participants

Environmental training hours

0.367

119.42

121.40

0.075

976.70

976.70

0.614

45,68316,730

28.71

9.58

153.41

Employee performance

PersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersons

Male Female Aged under 30

Aged 30–50 Aged over 50 Production staff

Sales staff Technical staff Finance staff Administrative staff

Number of employees

by genderNumber ofemployees by age

Number ofemployees byprofessionalcomposition

Basic earnings per share

Total assetsWeighted average return

Total Taxes Paid

IndicatorsUnit 2024

Number of employees

DimensionNo.IssueChapter/SectionClimate Change ResponsePollutant EmissionsWaste DisposalEcosystem and Biodiversity ProtectionEnvironmental Compliance Management

Energy UtilizationWater Resource UtilizationCircular EconomyRural RevitalizationSocial ContributionInnovation-driven Development

Ethics in technologySupply Chain SecurityEqual Treatment of SMEsProduct and Service Safety and QualityData Security and Customer Privacy Protection

EmployeesDue DiligenceStakeholders EngagementAnti-commercial Bribery and Anti-corruption

Anti-Unfair Competition

Climate Change ResponsePollution Prevention and Ecological ProtectionPollution Prevention and Ecological ProtectionPollution Prevention and Ecological ProtectionEnvironmental Compliance ManagementResource Utilization OptimizationResource Utilization OptimizationResource Utilization OptimizationRural Revitalization and Social ContributionsRural Revitalization and Social ContributionsInnovation-Driven Development and Technology EthicsInnovation-Driven Development and Technology Ethics

Supply Chain Management

Supply Chain Management

Product LiabilityData Security and Privacy ProtectionEmployee Rights and Interests Protection

/Corporate Governance

Business ConductBusiness Conduct

Environment

Social

SustainableDevelopmentGovernance

Statistical scope: work safety accidents

Content Index

The Issue Index of the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange— Sustainability Report (For Trial Implemen-tation) issued by the Shenzhen Stock Exchange

Employee performance

PersonsPersonsPersonsPersons

%%HoursPersonsHours/person

Sessions

TimePersons

6061

XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

Proportion of females in management

Employee turnoverTotal training hours of employeesTotal number of employees trainedAverage training hours per trained employeeNumber of occupational health and safety training sessions

Number of emergency drillsNumber of work-related fatalities?

7.18

16,291

Number ofemployees by

educational

background

Governance performance

PersonsPersonsPersonsSessionsPersons

Number of Board membersNumber of independent directors

Number of female directorsIntegrity education training sessionsNumber of integrity education training participants

IndicatorsUnit 2024

Master's degree or higherBachelor's degree

Junior college

Others

Suggestions and Feedback

Thank you for reading Handler’s 2024 Sustainable Development Report. To provide more valuable insights for you and other stakeholders, aswell as to enhance Handler’s ESG management capabilities and standards, we sincerely welcome your comments and suggestions on thisReport. Please provide your feedback through the following channels:

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XUZHOU HANDLER SPECIAL VEHICLE CO., LTD.FOREWORDENVIRONMENTALSOCIALGOVERNANCEAPPENDICES

2. Do you think this Report adequately present Handler’s sustainability performance?

YesAverageNo

3. Do you think this Report adequately addresses the expectations and requirements of Handler’s stakeholders?

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4. Do you think the quantitative information disclosed in this Report is objective, truthful, and effective?

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5. Do you think this Report is clear and easy-to-read?

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6. Do you think the layout design of this Report helps you understand relevant information?

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1. Which of the following stakeholder groups apply to you?

Governmental and regulatory agenciesShareholders and investorsCustomers EmployeesSuppliers and other partners

Others

Industry association or business organizationCharity organizations

The public (media or communities)

7. What aspects of Handler’s ESG management and sustainability disclosure you think require further improvement or refinement?

Xuzhou Handler Special Vehicle Co., Ltd.

Postal code: 221004Address: No. 19 Baoliansi Road, Xuzhou Economic and TechnologicalDevelopment Zone, Jiangsu Province, ChinaEmail: hlzzqb@xzhlz.com