福斯特(603806)_公司公告_福斯特：FIRST2024Environmental Social and Governance(ESG)Report_公司公告

HANGZHOU FIRST APPLIED MATERIALCO., LTD.Stock Code: 603806.SH

Environmental, Social, and

Governance Report

Response to UN Sustainable Development Goals

ESG GovernanceStakeholder EngagementMateriality Assessment for ESG lssuesSustainability Risks and Opportunities Management

Sustainability Metrics and Targets

Report Instructions

Letter from the Chairman

About FIRST2024 Key Performance and Awards

Responseto Climate ChangeEnvironmental Compliance Management

Energy ManagementWater Resource UtilizationEmissions & Waste Management

Chemical Safety

Innovation-driven DevelopmentIntellectual Property ProtectionProduct and Service Safety and QualityData Security and Customer Privacy Protection

Supply Chain Security

Occupational Health and Safety (OHS)Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights Protection

Employee Development and Training

Social Responsibility

Corporate Governance Standardized OperationsRisk Management and Internal Controls

Business Ethics

Appendix 1: Index of SSE Guidelines No. 14Appendix 2: GRI Standards Content Index

Appendix 3: Feedback Form

ThisreportistheEnvironmental,Social,andGovernance(ESG)ReportpublishedbyHangzhouFirstAppliedMaterialCo.,Ltd.(FIRST).ThepurposeofthisreportistoshowcaseFIRST'spracticesandachievementsinsustainabledevelopmentandtodisclosetheworkdonebyFIRSTintheareasofenvironment,social,andgovernancein2024andpreviousyears.

The organizational scope of this report covers HangzhouFirst Applied Material Co., Ltd. and its subsidiaries,consistent with the consolidation scope of FIRST(603806.SH) in the financial statements.This report ispublished annually, in alignment with the fiscal year,covering the period from January 1, 2024, to December31, 2024. To enhance the readability of the report, somecontent or data may trace back to previous years or lookforward to subsequent years. Unless otherwise stated,this report uses the RMB as the currency unit.

Unless specifically stated, the data in this report comesfrom the company's periodic or interim disclosures. Ifthere are discrepancies, please refer to the disclosedperiodic or interim announcements. Other data comesfrom the company's internal management systems andstatistics, including some historical data. The companyassures that there are no false records, misleadingstatements, or material omissions in the content of thisreport.

This report contains forward-looking statements,including business plans and development strategies.These statements reflect the company's predictions offuture events based on the current situation and may beinfluenced by unknown and uncertain factors thatmaterially differ from the actual results. No forward-looking or expected statement in this report constitutesa material commitment by the Company to investors.

This report is prepared in accordance with ShanghaiStock Exchange Listed Company Self-Regulatory

Guidelines No. 14 –Sustainability Reporting (Trial)issued by the Shanghai Stock Exchange(SSE);withreferencetotheGlobalReportingInitiative(GRI

Standards2021)

as well as the Sustainability Accounting StandardsBoard (SASB) standards and the recommendationsof the Task Force on Climate-related FinancialDisclosures (TCFD).

For ease of expression and reading, the terms"FIRST," "the company," "we," and "our" in this reportall refer to Hangzhou First Applied Material Co., Ltd.and its subsidiaries.

This report is available for download in electronicformat from the Shanghai Stock Exchange(www.sse.com.cn) and Hangzhou First AppliedMaterial Co., Ltd.'s website (www.firstpvm.com). Thisreport is available in both Chinese and English. In caseof discrepancies or ambiguities between the Chineseand English interpretations, the content in the Chineseversion shall prevail. For further inquiries, questions, orsuggestions regarding this report, please contact:

FIRST 2024 ESG Report

In 2024, the global energy transition and climate action entered a critical stage. Artificial intelligence droveprofound changes and growth in the global economy, accelerating the wave of technological revolutiontowards digitalization, intelligence, and decarbonization. Facing these trends, we embrace change and viewESG as a core driver of long-term value. Fully aware of our responsibility and mission, we approach ESGand sustainability from the perspective of growth and opportunity, and actively advance our corporateresponsibility and sustainability efforts.

This year, we gained deeper insight into our carbon footprint and cultivated new momentum for greendevelopment. We completed our first company-wide greenhouse gas (GHG) emissions accounting andworked with leading third-party institutions to map our carbon emissions. Meanwhile, we conducted full life-cycle carbon footprint assessments of our core products, laying a solid foundation for process optimizationand carbon reduction. Driven by innovation, we improved energy efficiency through process upgrades,equipment digitalization, and cross-division energy collaboration. Circular economy practices deepened aswe worked with partners to maximize resource use and minimize waste, includingshared pallets recyclingand auxiliary material recovery initiatives. Leveraging our advantage in photovoltaics, we invested indistributed PV power projects and steadily increased renewable energy use in operations, creating a far-reaching impact from internal decarbonization to industry-wide collaboration.

This year, we remained committed to diversity, inclusion, and social responsibility. Through "FIRSTCorporate University" and diversified training programs, we strengthened our "learning organization" andprovided comprehensive career development support, ensuring employee health, safety, skill growth, andmotivation. Staying true to our people-oriented philosophy, we built a diverse talent pool and helped newand overseas employees integrate into our culture. We promoted inclusive development through variousactivities and benefits, creating a caring workplace. In rural revitalization, we took concrete actions tosupport agriculture, aligning with the goal of common prosperity through targeted and effective assistance.

This year, we further strengthened technological innovation and corporate governance. We continued toimprove our ESG governance framework, with the Board of Directors — Strategy and SustainabilityCommittee at the core. Internal controls, compliance, and business ethics were reinforced to support high-quality and sustainable growth. Guided by our philosophy of "Innovative Technology for the Future," westayed focused on becoming a leading technology-driven enterprise, enhancing core competitiveness andadvancing independent R&D and industrial development in new materials. In 2024, we were recognizedwith honors such as the "Yangtze River Delta Business Innovation Model" and the "Zhejiang Science andTechnology Progress Award."I believe true sustainability lies in the deep alignment of technological ambition and a sense of responsibility.Looking ahead, we will embrace the new era of quality growth, tackle new materials challenges, and upholdour mission. We will explore promising sectors such as new energy, electronic information, andenvironmental protection, focusing on digitalization, decarbonization, sustainability, and innovation.Together, we will contribute to the national "Dual Carbon" strategy and create a greener future.

FIRST 2024 ESG Report

Responsible fordeveloping photovoltaicbusiness such as PVFilm and PV Backsheet.

Applications include

encapsulating,enhancing efficiency,

and protecting PVmodules.

Development Strategy: Focus on the main PV business, and vigorously develop other new material industries.Development Vision: To become a world-class materials supplier.Hangzhou First Applied Material Co.,Ltd.

Zhejiang New

Energy Development

Co.,Ltd. and its

subsidiaries

Conducting electronicmaterial business,including Dry FilmPhotoresist, FCCL, and

Photosensitive Solder

Resist.Applications includegraphic etching of PCB,

and insulationprotection of soft board

substratesand fine

circuit.

Responsible for thebusiness of functionalfilm materials such asAluminum LaminatedFilm and ROMembrane Support

Fabric.

Applications include

the flexible packaging

of lithium batteries and

the support of water

purificationmembranes.

Responsible fordeveloping smallground power stations,industrial andcommercial, andhousehold distributedpower stationbusiness.

Hangzhou FIRSTSuzhou FIRSTChuzhou FIRST

Jiaxing FIRST

Thailand FIRSTVietnam FIRST

Hangzhou FirstElectronic Material

Co.,Ltd. and its

subsidiaries

Hangzhou FirstFunctional Material

Co.,Ltd

FIRST 2024 ESG Report

Hangzhou HeadquartersPV Film & PV BacksheetPV Film Production BaseElectronic Materials* Under construction

PV ProductsJiangmen*ChuzhouSuzhouJiaxing

Hangzhou HeadquartersPV FilmElectronic MaterialsFunctional MaterialsElectronic MaterialsAnjiJi’anSuiningHuizhouJiangmen*Overseas baseHaiphong,Vietnam

Lascha,Thailand

About FIRST

Hangzhou Headquarters

Suzhou FactoryChuzhou Factory

Jiaxing Factory

Thailand FactoryVietnam Factory

Jiangmen Factory

Anji Factory

FIRST Advanced MaterialR&D Institute

FIRST 2024 ESG Report

Terminal Applications

Photovoltaic Materials

Used for encapsulating and protecting thefront and back of crystalline silicon solarcell modules, as well as the powergeneration layers of thin-film solar

modules. Depending on the raw materialsand manufacturing processes, it includestypes such as EVA film, white EVA film,EPE film, and POE film.

Photovoltaic Filmm

Our Products

A weather-resistant protective material used on the backside of solar modules.Photovoltaic Backsheet

Photovoltaic FilmPhotovoltaic Backsheet

Centralized PV Power Station

Distributed PV Power Station

-Business & Industry

Distributed PV PowerStation-Residential Houses

Downstream ApplicationPhotovoltaic modules are devices that convert solar energy into electricalenergy, consisting of multiple solar cells, glass, backplates, and frames,and are the core components of photovoltaic power generation systems.Photovoltaic Module

Photovoltaic Module

Centralized PV Power

Station

Distributed PV Power Station

-Business & Industry

Distributed PV Power Station-Residential Houses

About FIRST

FIRST 2024 ESG Report

Electronic Materials

A film material used for image transferon rigid and flexible printed circuitboards, high-density interconnect

boards, and packaging substrates.

Dry Film Photoresist

Dry Film PhotoresistFlexible Copper Clad LaminatePhotosensitive Solder Resist

The base material used forflexible printed circuit boards.Flexible Copper Clad Laminate

An insulating protective materialused for fine circuitry in printedcircuit boards, MiniLED, Micro-

LED, and camera module sectors.

Photosensitive Solder Resist

Printed circuit board (PCB) is a substrate used to connect andsupport electronic components, achieving electrical connectionsthrough conductive lines, and is the core component of electronicdevices.

Printed Circuit Board

ConsumerElectronics

Communication

ConsumerElectronics

Communication

Humanoid Robot

About FIRST

Our Products

Downstream Application

Terminal Applications

FIRST 2024 ESG Report

Functional Film Materials

Soft pack battery is a lithium-ion battery packaged with aluminum-plastic film,which is lightweight, soft, and has high energy density.

Soft Pack Battery

ConsumerElectronicsConsumerElectronics

Aluminum Laminated Film

A multilayer composite materialcontaining aluminum foil, used for thesoft packaging of lithium batteries.Aluminum Laminated Film

A base material used to supportwater purification membranes.Membrane Support Fabric

Membrane Support Fabric

Soft Pack Battery

Water PurificationMembraneWater treatment membrane is a thin film used for filtering and separatingimpurities in water, and is used for purifying and desalinating water.Water Purification Membrane

Energy StoragePower Station

DesalinationUrban Sewage Treatment

About FIRST

Our Products

Downstream Application

Terminal Applications

Energy StoragePower Station

AI ComputingPower Facilities

Humanoid Robot

FIRST 2024 ESG Report

2024 Key Performance and AwardsWemainlyengagedintheR&D,production,andsalesofPhotovoltaicMaterials,ElectronicMaterials,andFunctionalFilmMaterials.WearethelargestsupplierofPVfilmsglobally,withamarketshareofabout50%.Weoffertherichestproductlinethatcanmeettheencapsulatingrequirementsofvarioustypesofcrystallinesiliconcellsandthin-filmmodules.ThecumulativeshipmentsofourPVfilmscanencapsulateover1145GWofPVmodules.

Net Profit (RMB billion)

Total Asset (RMB billion)

Revenue(RMB billion)

Net Asset (RMB billion)

FIRST 2024 ESG Report

Outstanding Contribution Award by ChinaPhotovoltaic Industry Association

AAA-Level Enterprise for Contract Compliance

and Creditworthiness in Zhejiang ProvinceYangtze River Delta Business Innovation Model

2023

Top 500 Private Manufacturing Enterprises in

China 2024Second Prize of Zhejiang Science andTechnology Progress Award

The Sixth Batch of National SRDI "Little Giants"(HANGZHOU FIRST ELECTRONIC MATERIAL CO.,

LTD.)

FIRST 2024 ESG Report

Response to UN Sustainable Development Goals

Green Development for aSustainable Future

Innovation and Collaboration fora Responsible Value Chain

We actively respond to and support the United Nations Sustainable Development Goals (SDGs), striving to align ourbusiness operations with global sustainability initiatives and contributing to the achievement of global sustainabledevelopment. Centered around four core themesbelow,we integrate environmental protection, value chainmanagement, employee and social well-being, and corporate governance into our sustainability practices.Weproactively seek synergies with the SDGs, covering 14 specific goals including gender equality, industry innovationand infrastructure, responsible consumption and production, and climate action.This report presents our sustainability philosophy and practices comprehensively, reflecting our firm commitment tothe global sustainable development agenda.We firmly believe that through close collaboration and joint efforts with allstakeholders, we can build strong momentum to tackle challenges across environmental, social, and governance

dimensions. Together, we will contribute to the realization of the SDGs and inject lasting vitality into global

sustainable development.

Response to UN Sustainable Development GoalsESG GovernanceStakeholder EngagementMateriality Assessment for ESG lssuesSustainability Risks and Opportunities ManagementSustainability Metrics and Targets

FIRST 2024 ESG Report

Caring for Employees andBuilding a Harmonious Ecosystem

Integrity and Compliance to

Strengthen CorporateGovernance

Response to UN Sustainable Development Goals

FIRST 2024 ESG Report

We are committed to promoting global and corporate sustainability by integrating sustainable development conceptsinto our daily operations. We also plan and implement long-term ESG management strategies to create value for theeconomy, society, and the environment. We always value and listen to the voices of various stakeholders, adhere tocompliance, continuously enhance our sustainability awareness and capabilities, and aim to achieve sustainabledevelopment goals through solid ESG practices.

We continue to refine our ESG management system, striving for ongoing optimization.We have established an ESG governance framework with a clear structure, definedroles, and efficient operations, consisting of three levels: Decision-making, Management,and Execution, ensuring effective ESG implementation. ESG performance is also a keyindicator in evaluating the management team's performance, and we are exploring amechanism linking ESG results to compensation, with appropriate assessment weights,ensuring ESG principles are integrated into all aspects of the company's operations.

Innovation-driven&Green DevelopmentContinuously drive technological innovation, optimizeproducts and services, and actively promotetechnological advancements in the global clean energy

industry.Compliance Management&Steady DevelopmentStrictly comply with regulations and environmentalrequirements, ensuring legal compliance, precise

management, and steady growth.

Digital Innovation&Intelligent Operations

Independently develop and use digital tools andintelligent production systems to improve efficiencyand optimize resource allocation for sustainabledigital and intelligent development.Photovoltaic Empowerment&Low-Carbon Circulation

Reduce consumption and emissions, promote

green energy, and explore carbon offset andneutrality measures to gradually achieve carbonneutrality and contribute to a sustainable future.

Research sustainability matters (includingESG), assess risks and impacts, enhanceESG risk management, and providerecommendations to the Board.Monitor key sustainability information, assessESG impacts on stakeholders, oversee majorsafety and environmental risks, and propose

measures to the Board.Review sustainability policies, strategies,goals, and key issues, and monitorimplementation in line with development goals.Review social responsibility and ESG reports,and report to the Board.

Responsibilities of the Strategy and

Sustainability Committee

Decision-makingManagement

Execution

In our ESG governance framework, the Board of Directors holds

the highest governance responsibility(decision-making level),overseeing ESG matters and providing top-level support for thecompany’s sustainable development.The Board’s key duties include setting ESG strategy,monitoring implementation, determining key ESG issues, andreviewing related reports. These tasks are carried out by the

Strategy and Sustainability Committee, according to the "BoardStrategy and Sustainability Committee Work Guidelines."The Strategy and Sustainability Committee consists of threedirectors elected by the shareholders, with two non-independentdirectors and one independent director, and is chaired by theBoard chairman, reflecting the company's commitment to ESG.The chairman, as the company's controller, ensures riskprevention and compliance with internal control systems,safeguarding stakeholders' interests.

FIRST 2024 ESG Report

The Board Office: As the core leader of the ESG

Working Group, plans, coordinates, and supervisesESG activities across departments, and organizesand reports ESG-related issues and risks to theGeneral Manager's Office, ensuring accuratesummary and timely disclosure of ESG information.Supply Chain Center: Maintains integrity withsuppliers and partners, promotes transparency,selects responsible suppliers, and monitors theirESG performance.Legal Affairs Department: Ensures compliance withregulations and continuously enhances ESGperformance.Internal Audit Department: Manages ESG risksand controls, ensuring accurate data collection.Finance Center: Provides financial support for ESGprojects and monitors financial performance.Business Divisions & their Quality/EHS Dept.:

Ensures compliance with environmental standards,monitors performance, and provides training.IP Department: Protects innovations and promotessustainable technology development.IT Center: Supports ESG goals with technology,including carbon reduction and efficiency.HR Center: Ensures labor law compliance,respects employee rights, and fosters development.

The General Manager's Office, as the management level, isresponsible for formulating and executing ESG plans,

integrating ESG risks into the risk management and internalcontrol system. It oversees ESG implementation, evaluatesoverall ESG performance, provides recommendations to theBoard, and prepares ESG reports, presenting updates to theBoard quarterly through production and management meeting.The execution level consists of the ESG Working Group, led bythe Board Office. Group members include departments like theSupply Chain Center, Legal Affairs, Internal Audit, Finance,three Business Divisions (including their Quality and EHSdepartments), Intellectual Property, Information Technology,Engineering, R&D Institute, and Human Resources, coveringall aspects related to the company's daily management.To enhance ESG practices and disclosure quality, we haveestablished "Detailed Guidelines for the ESG Working Group",which track ESG goals, manage risks, and handle carbonemissions accounting. This collaborative structure ensureseffective ESG implementation and drives our sustainabledevelopment progress.We will continue improving our ESG practices, strengtheningcollaboration with professional organizations, and learning fromindustry leaders.

FIRST 2024 ESG Report

FIRST places great importance on ESG training. During the reporting year, dedicated ESG training sessions andmultiple annual ESG meetings were organized, covering department heads and ESG team members. The ESG teamleader provided in-depth explanations of FIRSTs ESG vision and sustainability strategy, shared industry bestpractices, clarified the ESG governance structure, disclosure objectives, and latest requirements, and addressed keyESG topics and concerns. These sessions strengthened participants understanding of ESG management andpractices, enhanced awareness of sustainability, and laid a solid foundation for achieving future ESG goals andadvancing the companys sustainable development strategy.

During the reporting period, members of the Board Officeactively participated in the ESG training organized by theShanghai Stock Exchange for listed companies. They alsoattended several ESG seminars and workshops hosted byprofessional institutions. The training covered topics such asESG reporting frameworks, strategies for enhancing corporateESG performance, and best practices from leading newenergy companies.In 2024, we organized targeted professional training on theSA8000 Social Accountability Standard and GHG emissionsverification. Professional institutions were invited to conductthe training and knowledge-sharing sessions. The programhelped deepen ourunderstanding of international socialresponsibility standards and GHG emissions, supporting theimplementation of SA8000 certification, carbon accounting,and the development of scientific emission reductionstrategies. It also enhanced the ESG knowledge andcapabilities of both management and executionteams.

Looking ahead, we will continue to strengthen ESG training, expand coverage, and enhance communication and

collaboration within the ESG working group. We aim to further improve employees understanding and execution ofESG-related initiatives. Meanwhile, we will closely monitor industry trends and regulatory changes to refine our ESGstrategies and practices in a timely manner.

Special Training on the "Sustainability (ESG) Report" forListed CompaniesSpecialized ESG Trainings

SA8000 Social Accountability Standard andGreenhouse Gas (GHG) Verification Training

FIRST 2024 ESG Report

In advancing sustainable development, we prioritize engaging with stakeholders. We continuously refine the types andmethods of their involvement, promptly collect and organize feedback from all parties, and take responsive measuresto fulfill stakeholder cooperation and collectively enhance communication mechanisms. We actively listen tostakeholders, understanding their concerns and recognizing their reasonable expectations. Our goal is to growalongside our stakeholders through diverse communications.Types of stakeholdersMain demandsMain response measures

Main communication

methods? Consistent and stablereturn on investment? Understand thecompany's operations? Sustainable development

? Strengthen the corecompetitiveness of the business? Fulfill information disclosureobligations in a timely manner? Improve internal controlmanagement

? Periodic reports and interimannouncements? Investors exchange events suchas performance presentations? Decent working conditions? Broad career development? Excellent compensationand benefits? Perfect health and safetyguarantee

? Improve employee recruitment,training, promotion and othersystems? Continue to optimize thecompensation and welfare system? Enrich staff activities? Strengthen occupational health andsafety management

? Workers' Congress? Learning and training activities? Employee care activities? Notice board, corporate websiteand WeChat public account? Stable and safe product? Competitively pricedproducts? Solve quality problemsquickly? Provide excellentcustomer service

? Implement a customer-firstbusiness approach.? Strengthen the corecompetitiveness? Continue to carry out R&Dinnovation? Enhance our overall operationalefficiency.

? Customer service? Technical exchange? Industry exhibition? New product launch

? Fair competition? Fulfill the contract on time

? Implement bidding procedures? Establish a list of qualified suppliersand conduct annual audits? Sign the integrity and self-discipline

letter? Pay attention to suppliers'demands? Win-win cooperation

? Supplier conference? Supplier annual audit? Integrity report platform

? Drive the development oflocal and surroundingindustries? Operate legally and in

compliance

? Provide jobs and pay taxes? Cooperate with governmentinspection work? Improve internal compliance

monitoring

? Ensure compliance withenvironmental, safety, and integritylaws and regulations

? Compliance operation? Pay taxes in accordance with law? Government data reports

? Government related meetings? Accept government scrutiny

? Environmental protection? Energy conservation andemission reduction? Good neighborliness? Public charity

? Operate legally and in compliance? Manage “three wastes”? Promote lean production? Fulfill social responsibilities

? Community Meeting? Publish ESG report? Accept social supervision

FIRST 2024 ESG Report

Step 1:

StakeholderEngagement

Engage with investors, customers, suppliers, government agencies, and other stakeholdersthrough online surveys and in-depth interviews with senior management to gather theirperspectives and expectations. Key ESG topics of concern are recorded and consolidated.Step 2:

Identification& PreliminaryScreening

In addition to the 21 sustainable development topics outlined in the Guidelines, we identify furtherESG topics based on stakeholder feedback, ESG standards and ratings, and industry hotspots.Topics with potential short-, medium-, and long-term financial materiality or significant impacts on

the economy, society, or environment are collected to establish the 2024 topic pool.

Step 3:

Assessment

Based on the evaluation criteria and stakeholder feedback, a double materiality assessment isconducted on the identified and preliminarily screened ESG issues. This assessment evaluatesboth the financial materiality and impact materiality, in order to determine their actual andpotential effects, as well as significant risks and opportunities.Step 4:

Prioritization

Similar ESG factors are categorized, and topics are prioritized based on their financial materialityand impact materiality. A materiality matrix is developed to determine the priority ESG issues forthe year.Step 5:

Validation &Disclosure

The Board’sStrategy and Sustainability Committee reviews and approves the material topicsand leads targeted disclosures, including governance, strategy, metrics, and opportunities relatedto core ESG topics, while driving continuous improvement.

2024 ESGTopic Pool

alConventions

UN SDGs, etc.

ESGStandards

SSE Guidelines No. 14, GRIand other ESGstandardsESG

Ratings

MSCI Ratings, CDPRatings, etc

Company

Strategy

Strategic and developmentneeds of the company

IndustryTrends

Hot topics in sectors likePV and PCB

MaterialityDimension

Criteria: Whether the topic has significant impact

FinancialMateriality

Does the topic have potential short-, medium-, or long-term impact on business models, operations, developmentstrategies, financial status, economic performance, cash flow, or cost of capital??Alignment with financial materiality assessments in company reporting?Potential for significant financial risks or opportunities over different time horizons?Likelihood of financial impactImpactMateriality

Whether the companys performance on the topic may have significant impact on the economy, society, or theenvironment?For actual negative impacts, the evaluation is based on the severity of the impact (such as scale, scope, and

irreversibility).?For actual positive impacts, the evaluation is based on the scale and scope of the impact (such as scale, scope,

and likelihood).?The likelihood of both negative and positive impacts occurring.

Response to Climate Change, Pollutant Emissions, WasteManagement, Ecosystem and Biodiversity Protection,Environmental Compliance Management, EnergyUtilization, Water Resource Utilization, Circular Economy,Chemical Safety, Clean Technology OpportunitiesRural Revitalization, Social Contribution, Innovation

Rural Revitalization, Social Contribution, Innovation

Driven Development, Tech Ethics, Supply Chain Security, Fair Treatment of SMEs, Product and Service Safety and Quality, Data Security and Customer Privacy Protection, Employees, Intellectual Property Protection
	Due Diligence, Stakeholder Communication, Anti

-Bribery

and Anti

-Corruption, Fair Competition, Corporate

Governance, ESG Governance

FIRST 2024 ESG Report

Financial Materiality to the Company

Impact Materiality on the Economy, Society, and Environment

High Material Topics2 Pollutant Emissions11 Innovation-DrivenDevelopment13 Supply Chain Security15 Product and ServiceSafety and Quality20 Anti-Bribery and Anti-Corruption24 Intellectual PropertyProtection25 Corporate Governance26 ESG Governance

Medium Material TopicsResponse to ClimateChange

Data Security &Customer Privacy ProtectionWaste ManagementEmployeesEnvironmentalComplianceManagement

Due DiligenceEnergy Utilization

StakeholderCommunicationWater ResourceUtilization

Fair CompetitionCircular EconomyChemical SafetySocial Contribution

Clean TechnologyOpportunitiesFair Treatment ofSMEs

Non-Material TopicsEcosystem andBiodiversity Protection

Rural RevitalizationTech Ethics

We conducted quantitative analysis basedon stakeholder interview results, as well asinput from internal financial experts andother ESG specialists. The materialitymatrix was developed using twodimensions—“Financial Materiality to the

Company” (X-axis) and “ImpactMateriality on the Economy, Society, andEnvironment” (Y-axis)—to evaluate and

prioritize each topic as High, Medium, orLow in importance.A total of 23 material topics were identified,among which 8 topics demonstrated highsignificance in both dimensions.The materiality assessment results werereviewed and approved by the BoardStrategy and Sustainability Committee,which also leads the targeted disclosureand continuous improvement of key ESGpractices.

FIRST 2024 ESG Report

We proactively manage sustainability risks and opportunities through robust assessment. These may affect ourbusiness model, operations, finances and strategy across short, medium and long-term horizons. By effectivelyidentifying and analyzing these factors, we mitigate risks while capitalizing on opportunities to achieve oursustainability objectives.

Category

TopicImpacts, Risks, and Opportunities

ImpactPathway

Timeframe*

Our Response

Environm

ent

Response toClimateChange

Opportunity: Driven by the "Dual Carbon" policy,the new energy market is expected to growsignificantly, leading to increased sales ofphotovoltaic (PV) products.

DownstreamShort-term

Continue developing and launchingPV encapsulation materials to fullymeet downstream demand.

Risk: The "Dual Carbon" related policy mayrequire increased use of clean energy, potentiallyraising costs or causing order loss due to stricterenergy supervision.

DownstreamLong-term

Proactively conduct carbonfootprint assessments and productcarbon accounting, with earlyenergy planning.Positive Impact: Supply PV products and build

power generation projects to increase clean

energy use and reduce GHG emissions for boththe company and society.

Positive Impact: Supply PV products and build

power generation projects to increase clean

energy use and reduce GHG emissions for boththe company and society.

Business

Operations

Medium-term

Innovate and expand PV product

lines to promote sustainabledevelopment.

Social

Employees

Risk: With the expansion of domestic andoverseas business, demand for globallyprofessional talents continues to grow.

BusinessOperations

Short-term

Focus on talent development andrecruitment, and improvecompensation, benefits, andemployee incentive.

Risk: Employees’ legal awareness is increasing,but due to complex information sources, there ispotential for misinterpretation of laws, possiblyleading to more labor disputes and reputational

risks.

Risk: Employees’ legal awareness is increasing,but due to complex information sources, there ispotential for misinterpretation of laws, possiblyleading to more labor disputes and reputational

risks.

BusinessOperations

Short-term

Strengthen employee educationand strictly comply with relevantlaws, regulations, and policies.

Positive Impact: Provide professional skills anddevelopment training, along with a sound workand living environment to ensure safety andstable employment.

BusinessOperations

Short-term

Continue to invest in employeetraining and development,providing good working and livingconditions.

Social

SupplyChainSecurity

Opportunity: By managing raw material pricefluctuations and optimizing procurement plans,we can reduce costs and enhancecompetitiveness.

UpstreamShort-term

Formulate reasonable procurementplans for raw materials.Risk: Raw material price fluctuations mayincrease costs or cause impairment of inventoryvalue.

Risk: Raw material price fluctuations mayincrease costs or cause impairment of inventoryvalue.

UpstreamShort-term

Make reasonable procurementplans and make provision forimpairment as needed in line withaccounting policies.Negative Impact: Failure to identify labor rightsviolations or unethical behavior in the supplychain could harm supplier employees' rights andour interests.

Negative Impact: Failure to identify labor rightsviolations or unethical behavior in the supplychain could harm supplier employees' rights andour interests.

UpstreamShort-term

Responsible sourcing of goods andservices, signing Supplier Code ofConduct with suppliers.

Social

Market -

Geopoliti

Risk: Slowing global economic growth mayweaken external demand and increase the risk of

trade protectionism.

BusinessOperations

Short-term

Diversify markets, innovate, andcoordinate supply chains tocounter global demand drops and

trade barriers.

Risk: Geopolitical tensions may disrupt supplychains, increase business costs, and causecurrency fluctuations.

BusinessOperations

Medium-

term

Supply chain diversification andforeign exchange risk management.

FIRST 2024 ESG Report

We identify and assess the significant economic, social, and environmental impacts across key stages of our valuechain, including procurement, production, sales, services, internal management, external investments, and socialactivities. Based on the characteristics of each stage, we have developed an impact map to comprehensivelyreview and evaluate the potential positive (benefits) and negative (costs) impacts of our value chain activities. Thishelps us better monitor, prevent, manage, control, and mitigate significant impacts and implement correspondingmeasures.

PositiveImpactsSupplychain value

GreenprocuremeSupply chain

socialresponsibility

Supplieremployees/business

ethicsRevenue

R & DEmployeecare

Training/Salary

Taxes/dividendsIncreaseefficiency

Socialresponsibility

Welfare/RuralCustomer

valueEco-friendlypackagingInnovativeproduct

GHGemissionWasteManagementOccupationalinjury

WaterUtilizationPollutantEmissionsSupplier resourceconsumption

SupplieremployeeemploymentSupplier product

sales

Circular EconomyEfficient product

applicationAll-around productapplication

Productionconsumption

Employee

employmentProducts sales

NegativeImpacts

UpstreamProcurement

CompanyOperations

Customer

Application

indirect effect

direct effect

indirect effect

◆◆◆

GHGemission

WasteManagementOccupational

injury

WaterUtilizationPollutantEmissions

Response to UN Sustainable Development GoalsESG GovernanceStakeholder Engagement

Materiality Assessment for ESG lssuesSustainability Risks and Opportunities ManagementSustainability Metrics and Targets

FIRST 2024 ESG Report

Increase R&Dinvestment to develophigh-efficiencyinnovative products,contributing to cleanenergy initiatives anddual carbon goals.

Optimize productionprocesses, improveenergy efficiency, reduceresource consumptionand waste, and promotecircular economypractices to build asustainable ecosystem.

Adopt digital supplier

management to embedsustainability principlesand collaborate oncreating an ethical,green, and sustainablesupply chain network.

Safeguard occupational

health and rights,

foster equality anddiversity, and cultivateglobally competitivetalent withmultidisciplinaryexpertise.

Strengthen communityengagement and

university partnerships,leverage PV industrystrengths to supportvulnerable groups, anddrive social progress.

We are committed to establishing a comprehensive environmental, social, and climate risk management system.We regularly monitor and manage the following key indicators to ensure transparency and accountability. Thesemetrics are continuously measured and disclosed annually:

?Comprehensive Energy

Consumption

Diesel Consumption

Natural GasConsumption

?Electricity Consumption?

Direct EnergyConsumption

Indirect EnergyConsumption

Clean Energy Usage

Renewable ElectricityUsage Ratio

Unit ConsumptionReduction

EnvironmentalCompliance

Water Withdrawal

Water Use Intensity

Withdrawal andwastewatermanagement

Recyclable WasteVolume

Waste Categorization

GHG Emissions

Scope 1 Emissions

Scope 2 Emissions

GHG Emission I

ntensity

Waste Disposal

Circular EconomyTargets

?Carbon accounting and

Carbon FootprintCertification for KeyProducts

FIRST 2024 ESG Report

We have established a comprehensive ESG governance framework that fully incorporates climate changegovernance. By integrating climate-related functions into our ESG governance structure, we ensure systematicmonitoring and management of climate-related risks and opportunities, with clearly defined responsibilities atdecision-making, management, and implementation levels, forming an effective top-down climate governancesystem.

The highest governance and decision-making body for climate change work, wherethe Strategy and Sustainability Committee reviews and approves climate-relatedpolicies, material topics, strategic plans, targets, implementation progress, as wellas associated risks and opportunities.Board Strategy andSustainability CommitteeThe GeneralManager's OfficeThe ESG WorkingGroup

Responsible for formulating and implementing climate-related strategies, targets,and measures; assessing and managing climate-related risks and opportunities;monitoring progress against climate targets; and engaging stakeholders onclimate issues. Monthly reports are submitted to the Board through officemeetings.

Decision-Making

ExecutionManagement

Cross-departmental collaboration to execute climate-related ESG strategies andactions, achieve targets and metrics, conduct awareness campaigns atoperational sites, and regularly report climate-related operational updates to theGeneral Manager’s Office.

We fully recognize the profound and complex impacts of climate change on human society and natural ecosystems.Climate-related risks and opportunities exhibit intricate systemic linkages. For instance, global climate policies andextreme weather events may threaten economic stability and business operations, while simultaneously creatingopportunities for technological innovation and green transformation. Against this backdrop, global low-carbontransition is imperative, and we treat climate change as a core strategic priority, committed to mitigating its adverseeffects through business practices.We closely track domestic and international climate policies, actively responding to national strategic goals such asthe "Carbon Peak Action Plan Before 2030." Since 2024, we have initiated corporate-wide carbon accounting to

systematize and refine climate work. By establishing a robust carbon management system, we aim to achieveemission reduction targets and lay the foundation for carbon neutrality. We steadfastly advance our "SOLAR FOR

SOLAR—Negative Carbon Earth" sustainability vision, implementing energy conservation, renewable energy

adoption, and energy structure optimization across operations. As an active player in renewable energy, wecontinuously develop innovative technologies and green products to accelerate industry-wide sustainable transition.

We have identified and assessed two categories of climate-related risks and opportunities: (1) Transition risksassociated with low-carbon economy shifts (policy/legal, technological, market, reputational risks); and (2) Physical

risks from climate impacts (acute risks like extreme weather and chronic risks like long-term climate pattern shifts).

Addressing climate change is not only about risk management but also seizing development opportunities.We are

committed to driving the global energy transition by enhancing our climate risk management, improving disclosuretransparency, advancing green technology innovation, developing sustainable low-carbon solutions, and supportingworldwide climate governance to achieve sustainable development goals.

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

Type

Transition Risks/Opportunities

DescriptionMitigation Measures

Time Horizon

LevelPolicy &

Legal

Risk: Climate

disclosurerequirements

Increased costs forcarbon data collection,third

-party verification,

and policy monitoring

Establish carbon data management system; disclose climate targets/progress in ESG reports per regulations

Medium-to-long term

Low

Policy &Legal

Risk: Mandatoryrenewable energy

use

Stricter GHGemission/renewableenergy requirements maybe imposed

Conduct carbon accounting andverification; set reductiontargets; plan renewable energyadoption; implement low

carbonoperations

Long term

Medium

Market

Risk: Rising rawmaterial costs

Suppliers' climate

relatedoperational costincreases may elevateFIRST's procurementexpensesOptimize low

Optimize low

-carbon supply

chain; enhance resilience;collaborate with partners onemission reductions

Medium-to-long term

Medium

Market

Opportunity: Growingclean energy demand

Market shift towardrenewables boostsdemand for photovoltaicproducts

Expand PV encapsulationmaterials production; align with"Focus on the main PVbusiness, and vigorously

develop other new materialindustries" strategy

Expand PV encapsulationmaterials production; align with"Focus on the main PVbusiness, and vigorously

develop other new materialindustries" strategy

Medium-to-

long term

High

Technology

Risk: Low-carbon

tech upgrades

Higher R&D costs forenergy

-efficient

technologies; need totrack industry innovationsIncrease low carbon techinvestment; analyze trends;maintain competitive edge

Increase low carbon techinvestment; analyze trends;maintain competitive edge

Medium-to-long term

High

Reputation

Risk: Stakeholder

dissatisfaction with

climate-related

actions

Failure to meet climate action expectations may damage reputation

Regular stakeholder engagement; transparent disclosures (e.g., ESG reports)

Long termLowType

Physical Risks/

Opportunities

DescriptionMitigation Measures

Time Horizon

Level

Acute

Risk: Extreme weather

(storms, typhoons)

Production disruptions,asset/employee losses,

and supply chaininstabilityUpgrade equipment; implement

emergency protocols; enhanceweather resilience

Upgrade equipment; implement

emergency protocols; enhanceweather resilience

Short-to-

medium term

Low

Chronic

Risk: Climate patternshifts (heatwaves/cold

snaps)

Rising temperaturesincrease cooling/heatingcosts and impactemployee health and

productivity

Improve energy management;deploy renewable/energy

efficient devices; strengthenworker protections

Long termLow

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

We have established a climate-related risk and opportunity identification, assessment, and management process.This systematically identifies and evaluates material climate change risks and opportunities, develops targetedmitigation measures and action plans, and integrates climate risk management into the cross-departmental riskmanagement framework. Through standardized procedures, the General Managers Office reports monthly to theBoard on climate-related matters, while the Strategy and Sustainability Committee conducts regular reviews.Management strategies are dynamically adjusted in response to internal/external changes and business planupdates, ensuring deep integration of risk management with corporate strategy to address climate challenges andadvance sustainability goals.

Determine boundariesby consideringproducts, operationalscope, and value chain,with periodic reviews toadapt to changes.

Preliminarily identifyrisk/opportunitycategories based onCDP questionnaires,SSE Guidelines No. 14,

industry trends, and

societal factors.

Systematicallyscreen relatedclimaterisks/opportunitiesaffecting operations

and value chainpartners.

Assess impacttimelines andmateriality levels perTCFD frameworkthrough internalsurveys and industry

research.

Business divisions andtheir departments developtailored responsestrategies aligned withoperational characteristics.Regularly discloseclimate risk/opportunityidentification,assessment, andmanagement progress.

Monthly Board reportingwith Strategy andSustainability Committee

reviews of key climateitems.

4321

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

In addressing climate change challenges, we closely monitor evolving domestic and international regulations and

have established short-, medium-, and long-term carbon emission reduction targets tailored to our operations. Wehave implemented proactive measures to identify, quantify, and disclose environmental, social, and climate-relatedmetrics, including conducting carbon accounting for all domestic and international subsidiaries under ouroperational control. These efforts demonstrate our steadfast commitment to sustainable development.

In 2024, we conducted detailed statistics and identification of both direct andindirect carbon emissions covering our production and operations, compileda carbon inventory, and performed carbon accounting for our parentcompany as well as all domestic and foreign subsidiaries under ouroperational control, in accordance with The Greenhouse Gas Protocol -A

Corporate Accounting and Reporting Standard and ISO 14064-1:2018(Greenhouse gases -Part 1: Specification with guidance at the organizationlevel for quantification and reporting of greenhouse gas emissions andremovals).Simultaneously, we engaged a third-party institution to conduct independentverification of our Scope 1 and Scope 2 greenhouse gas datafollowing ISO14064-3:2019 (Greenhouse gases -Part 3: Specification with guidance forthe verification and validation of greenhouse gas statements), which issuedtheVerification Statement of GHG Emissions.

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

Scope 1 Emissions refer to greenhouse gas emissions from sources directly owned or controlled by the company,

corresponding to "direct greenhouse gas emissions" as defined in ISO 14064-1:2018.Scope 2 Emissions represent greenhouse gas emissions generated from purchased electricity and heat energy, aligning with

"indirect greenhouse gas emissions from imported energy" under ISO 14064-1:2018.

FIRST 2024 Greenhouse Gas EmissionsEmission CategoryUnitDataTotal GHG EmissionstCO?e

305,024

By Scope Classification

Scope 1* EmissionstCO?e

7,952

Scope 2* EmissionstCO?e

297,072

GHG Emission IntensitytCO?e/10k RMB Revenue

0.1593

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

To actively respond to the national "Dual Carbon" goals and practice the green and low-carbondevelopment philosophy, we have continued to advance carbon emission management and conductedcarbon footprint certification for our key products. During the reporting period, based on the standardsissued by the International Organization for Standardization (ISO) - "ISO 14040:2006 Environmentalmanagement - Life cycle assessment - Principles and framework", "ISO 14044:2006 Environmentalmanagement - Life cycle assessment - Requirements and guidelines", and "ISO 14067:2018Greenhouse gases - Carbon footprint of products", we systematically calculated and assessed thecarbon footprint throughout the product lifecycle of our main products, and successfully obtained ProductCarbon FootprintVerification Statements issued by an authoritative third-party institution. Throughcarbon footprint certification, we have comprehensively grasped the carbon emission data from rawmaterial acquisition to production processes, identified emission reduction potential, and provided a

scientific basis for subsequent optimization of production processes and reduction of carbon emissionintensity.In the future, we will continue to deepen carbon footprint management, promote green transformation ofthe supply chain, explore more low-carbon technology applications, and strive to achieve carbonneutrality throughout the entire product lifecycle, contributing corporate strength to addressing climatechange.

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

Photovoltaic Business

As a dedicated player in the green energy sector, FIRST specializes in manufacturing photovoltaic (PV)encapsulant films and backsheets – critical components that protect and enhance PV modules' efficiencyand lifespan. Through continuous technological innovation and cost optimization, we deliver high-performance solutions that empower PV module manufacturers to improve cost-efficiency, strengthensolar energy's market competitiveness, and accelerate the transition to a clean, low-carbon energyecosystem, thereby supporting ecological conservation and environmental stewardship.In 2024, FIRST sold 2.811 billion square meters of PV encapsulant materials, enabling 296GW of moduleproduction. Based on coal-power equivalency, these modules will reduce approximately 295 million tonsof carbon dioxide emissions.

Power Generation Operations

LeveragingourPVindustrialexpertise,FIRSThasdeployeddistributedPVsystemsacrosseligiblefactoryrooftops.Throughourwholly-ownedsubsidiaryZHEJIANGFIRSTNEWENERGYDEVELOPMENTCO.,LTD.anditssubsidiaries,wehavedevelopedground-mountedanddistributedPVprojectsinHangzhou,Jiangshan,Beijing,andotherregions,embodyingour"SolarforSolar"sustainabilityvision.Asoftheendof2024,weowned19.99MWofself-operatedphotovoltaicpowergenerationsystemsanddeveloped/externallyheld27.15MWofPVsystems.Basedoncoal-powerequivalencycalculations,thesesolarpowerinstallationscollectivelyreducedapproximately56,400tonsofcarbondioxideemissions.

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

FIRST attaches great importance to environmental protection work, strictly complies with laws and regulationsincluding the Environmental Protection Law of the People's Republic of China, the Environmental ImpactAssessment Law of the People's Republic of China, and the Noise Pollution Prevention and Control Law of thePeople's Republic of China, comprehensively builds an environmental protection management system, andestablishes the Environmental Protection Management Responsibility System to implement corporate responsibility.The company has established a three-level environmental management structure of "headquarters - all bases - baseEHS departments", clarifying the work responsibilities of departments at all levels. The headquarters is responsiblefor reviewing and making major environmental protection decisions, while supervising the implementation ofenvironmental protection work. Each base and its EHS dept. are responsible for implementing and supervisingspecific environmental protection work at the base.The company strengthens the construction of environmental protection facilities, effectively controls the compliantdischarge and disposal of pollutants such as waste gas, wastewater and waste residue. The company hasformulated emergency plans for environmental incidents, providing clear guidance for the prevention, preparation,emergency response and post-disaster recovery of sudden environmental pollution incidents.

The company has systematically established a monthly EHS reporting mechanism,regularly compiling and issuing Safety Monthly Reports, which include: 1. specialanalysis of environmental incidents; 2. highlight environmental protection work ofsubsidiaries.

Through this normalized information reporting mechanism, transparentmanagement of environmental risks is achieved, promoting experience sharingamong subsidiaries and continuous improvement of environmental protectionperformance.

As of the end of the reporting period, 100% of the company's production bases have obtained ISO14001environmental management system certification. Wehave established an internal performance evaluation systemrelated to the environment. In 2024, annual environmental audits were conducted for subsidiaries to improveenvironmental performance. To ensure continuous compliance with ISO14001, we will continue to strengthen ourinternal and follow-up audit work and improve our internal processes.In 2024, the company did not receive any administrative penalties from ecological environment authorities due toenvironmental incidents.SystemNameCoverage of Producing Subsidiaries in the GroupISO14001Environmental Management System100%

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

FIRST has formulated the Emergency Response Plan for Sudden Environmental Incidents in accordance withregulatory requirements including the Measures for the Administration of Emergency Response to SuddenEnvironmental Incidents, establishing a systematic and comprehensive emergency management system. Thecompany strengthens environmental risk management through three key dimensions:Mechanism Development:

Establisheda closed-loop management system integrating "prevention-warning-response-recovery" with clearoperational procedures defined for each phase.Organizational Structure: Implementeda tiered emergency commandsystem, specifying authority divisions among decision-making, execution, and support levels.ImplementationSafeguards: Standardizedtwelve core procedures including monitoring & warning, emergency response, and post-

incident disposal, supported by material reserves, team training, and contingency drills. Through quantified responseclassification criteria and scenario-specific disposal plans, standardized and procedural management ofenvironmental emergencies has been achieved.All production bases have developed and regularly update, refine, and conduct drills for their respective EmergencyResponse Plans for Sudden Environmental Incidents.

In April 2024, Jiaxing Company conducted a hazardous chemical leakage drillsimulating pipeline connection loosening during filling operations. Personnelfollowed protocol by wearing protective gear and using specialized tools tocontain the leak, preventing environmental contamination through stormwaterdrainage systems.In August 2024, Hangzhou Company executed an air pollution emergency drillsimulating exhaust gas leakage due to equipment failure, thereby enhancingemergency response capabilities for emission control system malfunctions.In October 2024, Electrical Materials Company organized a hazardous wasteleakage drill, significantly improving staff preparedness and response awarenessfor such incidents.In December 2024, Anji Company performed a drill for pH exceedance at

wastewater discharge outlets, validating the effectiveness of emergencyprocedures and strengthening abnormal discharge response capabilities.

Environmental ComplianceMetrics & Targets

2024 Target2024 Achievement"Two Zeros"

Zero environmental accidents, zeroadministrative penalties

Achieved: No environmental incidents

or penalties in 2024"Two Controls"

Control neighborhood complaints to≤4 annually, 100% complaint

resolution rate

Achieved: Zero neighborhood

complaints in 2024

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

We have always placed great emphasis on environmental protection. In recent years, we have consistently increasedour investment in environmental protection to upgrade facilities, optimize production processes, promote theapplication of green energy, and reduce carbon emissions. These initiatives not only reflect our commitment toenvironmental responsibility but also lay a solid foundation for achieving green development goals.In 2024, clean technology products (photovoltaic materials) accounted for 94.59% of our total revenue.

Year202420232022

Environmental ProtectionInvestment (10,000 RMB)

8,153.056,861.083,618.74

All our production facilities have undergone environmental impact assessments. Research indicates that allmanufacturing bases are located within government-designated industrial zones, and none are situated in areasofficially classified as ecologically sensitive. We maintain full compliance with all applicable environmental laws andregulations in our operations.Going forward, we will implement ongoing monitoring of biodiversity risk managementand provide periodic reporting on our conservation efforts and progress.

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

The company has established a multi-level, comprehensive energy management framework to systematicallyadvance energy management and energy conservation efforts. At the corporate level, the FIRST EnergyManagement Leadership Group consolidates energy data from all production bases, formulates company-wideenergy-saving policies and goals, and provides strategic guidance for overall energy management. At the productionbase level, each base has its own Energy Management Leadership Group, adopting a three-tier managementstructure of Leader, Deputy Leader, and Members, with clearly defined responsibilities:The Leader is responsible forsetting the base’s energy-saving policies and goals, and overseeing energy conservation management.TheDeputy Leader assists the Leader, leads the implementation of energy-saving technological upgrades, technicalinitiatives, and annual energy-saving plans, and promotes new technologies and processes.The Members,composed of production workshop supervisors and office directors, are responsible for executing energy-savingplans, monitoring energy usage, and improving energy efficiency through measures such as establishing regulationsand assigning detailed targets to teams or individuals.Additionally, each base is equipped with Energy Management Officers and Measurement Management Officers tosupport the implementation of specific tasks. Through this structure, the company has achieved systematic andrefined energy management, providing a solid foundation for meeting energy conservation and efficiency goals.Wehave established systematic energy management policies aimed at optimizing energy allocation and utilizationefficiency, reducing waste, minimizing environmental impact, and advancing energy conservation objectives.The

Energy Management Policy defines the organizational structure and responsibilities for energy management andmeasurement, covering the use, measurement, statistical analysis, and cost management of electricity, water,natural gas, and other energy sources. It applies to all departments, with the core objective of energy conservation.

The Energy Conservation and Efficiency Policy specifies the roles of the Energy Management Group Leader, DeputyLeader, and Members to ensure orderly and effective implementation of energy-saving initiatives.The Energy

Measurement Objectives Policy outlines the selection and retirement criteria for energy measurement instruments. It

requires regular technical and economic analysis of energy usage for major equipment and public systems,combining testing and statistical analysis to identify energy-saving potential and improvement directions, therebyproviding a scientific basis for optimizing energy management and technological upgrades.Through these policies,wehave built a robust energy management system, offering institutional support for achieving high-efficiency energyutilization and sustainable development goals.

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

Against the global backdrop of advancing "carbon peak" and "carbon neutrality" goals,photovoltaic (PV) power generation, as a key component of new energy, will play asignificant role in future power systems. In 2024, we invested over 9 million RMB tolaunch four new PV projects across multiple company bases, including capacityexpansion of existing projects, PV-covered parking lots, and rooftop installations ondormitory buildings. Currently, six production bases have implemented distributed PVsystems, achieving self-consumption with surplus electricity fed into the grid. In 2025,we plan to add three additional rooftop distributed PV projects at factory buildings,

further increasing the proportion of renewable energy usage to support the green andlow-carbon transition.

*The conversion of different energy types into standard coal equivalent follows GB/T 2589-2020 General Principles forComprehensive Energy Consumption Calculation.*Diesel volume-to-mass conversion in this report is based on a standard density value of 0.835 kg/L.

Thecompanyhasestablishedadigitalplatformtoenablereal-timemonitoringofenergyconsumptionandhistoricaldatatraceabilityanalysis,providingprecisedatasupportforenergymanagement.MonthlyEnergyStatisticalReportsandEnergyAnalysisReportsarecompiledtooptimizeenergyefficiencythroughdatainsights,continuouslyadvancingenergymanagementandenergyconservationgoals.

IndicatorUnit2024 DataBasic Energy UsageTotal Energy Consumption*tce (tonnes of standard coal equivalent)

74,658.5

By Energy TypeDiesel*liters

123,423.5

Natural Gasm?

1,955,545.0

ElectricityMWh

578,372.1

Direct Energy Consumptiontce

2,877.4

Indirect Energy Consumptiontce

71,781.0

Energy Intensitytce/10,000 RMB (revenue)

0.0390

Clean Energy UsageClean Energy ConsumptionMWh24,613.5By Energy TypeSolar PowerMWh24,613.5Renewable Electricity (Solar) Usage Ratio%4.26

Responseto Climate Change Environmental Compliance ManagementEnergy Management

Water Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

Wehavebeenactivelyimplementingdiverseinnovativeenergy-savingmeasuresinenergymanagementandretrofitstoenhanceefficiencyandreduceoperationalcosts.Throughprocessoptimization,energy-savingretrofitsofproductionequipmentandperipheralfacilities,andoptimizedequipmentusagestrategies,wehaveachievedsignificantenergysavingsandefficiencyimprovements.Energy-savingProject

Energy-saving ResultsCooling Tower ExcessCapacity Utilization

Cooling towers are typically designed with 1.1–1.2 times redundancy. By optimizingoperational strategies—such as variable frequency drives for fans and demand-basedactivation of cooling towers—we effectively reduced unnecessary energy consumption.Cross-business SteamSynergy and Reuse

Through cross-business resource coordination, steam generated from electronicmaterials production is redirected to functional film production. In 2024, steam reusereached730.9 m?, lowering steam treatment costs for electronic materials while providinga stable steam supply for functional film production.Power Distribution and

Energy Storage

Distributed PV stations were installed on workshop rooftops. To address powergeneration fluctuations and demand variability, we introduced energy storage systems for"peak shaving and valley filling," stabilizing grid fluctuations while capitalizing on peak/off-peak electricity price differentials.RTO Waste HeatUtilization

Our RTO incineration system achieves efficient waste heat recovery, repurposing heat forpower generation, winter workshop temperature regulation, and steam production forphotosensitive dry film drying. Condensate from steam is recycled to boilers, creating aclosed-loop system that enhances energy efficiency.Online Ball CleaningSystem

Freezers were retrofitted with online ball cleaning systems to maintain condenser tubecleanliness, ensuring optimal heat exchange performance, reducing electricityconsumption, and improving energy efficiency.Cooling Optimizationand Control Measures

For high-temperature production zones, we restricted air conditioning usage and insteadoptimized fresh air circulation with chilled air blowers. In AC-cooled areas, we enhancedduct sealing/insulation inspections, installed magnetic AC curtains, implemented stepwisetemperature control within continuous cooling spaces, and set strict temperature limits toimprove efficiency and thermal management.

We attach great importance to fostering an energy-saving culture through diversified awareness initiatives. Fordepartments with unquantifiable targets, we implement all-staff energy-saving actions via QCC activities. Forquantifiable targets, we enforce energy-saving responsibility agreements. Our systematic approach includes: hosting

campaign launches to clarify objectives, designing promotional posters, and conducting training on energy-savingpractices. These measures have effectively enhanced employee awareness and embedded conservation conceptsinto daily operations, supporting sustainable development.

Responseto Climate Change Environmental Compliance ManagementEnergy Management

Water Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

Wehaveestablishedasystematicenergyperformanceevaluationsystem,incorporatingenergyconsumptionindicatorsintomulti-levelperformanceassessmentstodriveenergyconservationgoals.Keymeasuresinclude:

Corporate Level

Integrating energy consumption into KPI evaluations. For PV bases with higher energy demands,

establishing inter-base benchmarking mechanisms and implementing "Energy Conservation

Responsibility System" initiatives with phased targets

BaseLevel

Incorporating energy metrics into monthly performance evaluations for major energy-consumingdepartments, with annual target updates. For departments with unquantifiable targets (e.g.,Quality, Administration), organizing "Energy Conservation QCC" activities to institutionalizemeasures through incentive programsEquipmentManagementLevel

Assigning the Equipment Department to oversee daily energy management and technologicalinnovations. Linking conservation targets directly to performance evaluations for "EnergyManagement Positions," "Utility System Engineers," "Utility Teams," and "Equipment RetrofitEngineers" to ensure accountabilityThismulti-tieredevaluationsystemeffectivelyadvancesthecompany'senergyobjectivesandenhancesmanagementstandards.

Energy ManagementMetrics and Targets

2024 Targets2024 Achievements

Energy Intensity

For all production units:

3% reduction (baseline),

5% (achieved),7% (excellent),9% (outstanding)relative to prior-year levels.

Hangzhou Base: Film Workshop met"baseline"; Mixing Workshop achieved

"outstanding"

Chuzhou Base: Film Workshop met

"achieved"; Mixing Workshop reached

"outstanding"Suzhou Base: Film Workshop met

"baseline"; Mixing Workshop attained

"excellent"Jiaxing Base: Film Workshop met"achieved"; Mixing Workshop reached

"excellent"

Responseto Climate Change Environmental Compliance ManagementEnergy Management

Water Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

We place high importance on water resource management, strictly complying with laws and regulations such as theEnvironmental Protection Law of the People's Republic of China and the Water Pollution Prevention and Control Lawof the People's Republic of China, as well as relevant discharge standards. We systematically promote efficient waterutilization and wastewater discharge control through water intake management and wastewater management.We have established the Energy Management System to systematically advance water conservation and optimizewater resource utilization through water balance testing and expert review. We have comprehensively mappedinternal water usage, identified inefficiencies, improved water metering systems, and implemented targeted watermanagement optimizations. The company actively encourages the adoption of water-saving technologies to enhance

production water efficiency. Regular water conservation training and awareness campaigns are conducted to embedconservation practices into daily operations.

We categorize wastewater into industrial production wastewater and domestic sewage, applying differentiatedtreatment approaches. Industrial wastewater primarily originates from production line cooling, equipment cleaning,and floor washing. Recyclable wastewater is fully reused, while non-recyclable wastewater is treated to meetstandards before discharge. Domestic sewage is discharged through municipal sewer systems.Wehave implemented a comprehensive water quality monitoring and control system, focusing on:

Three-tier MonitoringMechanism

Conducting high-frequency, multi-point water quality testing at wastewater station inlets,process stages, and final discharge points (covering COD, ammonia nitrogen, etc.).Equipment HealthManagement

Maintaining performance parameter logs for critical equipment (pump efficiency, aerationvolume, chemical dosing accuracy) and executing preventive maintenance (monthlyperformance assessments + quarterly deep maintenance).Discharge Risk

Closure

Triggering three-tier alerts for abnormal data (on-site inspection - process adjustment -expert consultation), with rectifications documented in the Environmental FacilityPerformance Evaluation Report.

The company prioritizes risk management in water resource utilization, ensuring sustainable management throughsystematic assessment and planning. We continuously monitor regional water risks and maintain robust preventionmechanisms covering water supply security, usage coordination, and quality protection, while promoting wastewaterreuse to minimize environmental and operational impacts.

RiskDescriptionMitigation MeasuresLevelWaterShortage

Local potential supplyshortages affectingoperations

Conduct water resource surveys to inform scientific usageplanning

Collaborate with local governments on equitable allocation

LowLocalWaterConflicts

Operations may strainregional water supplies

Establish community communication channels

Implement CSR projects to improve local water efficiency

Relatively

LowWaterPollution

Improper wastewatermanagement maycontaminate nearbywater bodies

Deploy professional treatment equipment to ensurecompliant discharge

Implement regular monitoring to preempt pollution incidents

Enhance internal wastewater reuse to reduce dischargevolumes

Low

Responseto Climate Change Environmental Compliance ManagementEnergy Management

Water Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

To address high water consumption in cooling tower open circulating water systems, thecompany has implemented measures including softened water replenishment, optimizedconductivity control, and concentration ratio management. These initiatives effectively reducecalcium/magnesium scaling and microbial/algal growth, significantly decreasing blowdownwater volume while extending intervals between heat exchanger and condenser cleanings,thereby enhancing water utilization efficiency.

The company has innovatively developed white water recycling equipment that efficiently filtersfiber-containing secondary white water to meet cleaning standards for direct reuse in feltwashing processes. This technology saves 500 tons of water daily while substantially reducingwastewater discharge, achieving efficient water resource cycling.

Leveraging polymer material R&D capabilities, we have developed a series of membrane

support fabrics for water purification with customizable weight, thickness, and breathabilityspecifications. These materials enable production of reverse osmosis, nanofiltration,ultrafiltration, and microfiltration membranes, widely applied in seawater desalination, industrialpure water production, municipal/industrial wastewater treatment, and household purification -fundamentally advancing water resource utilization and protection.

2024 Water Usage DataTotal Water Consumption

1,185,641

tonsWater Use Intensity

0.6192

tons/million RMB revenue

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

We strictly comply with environmental regulations including the Environmental Protection Law of the People'sRepublic of China, Air Pollution Prevention and Control Law, Water Pollution Prevention and Control Law, and SolidWaste Pollution Environment Prevention Law. Internally, we have established the Environmental ProtectionResponsibility System, Environmental/Safety Operation Control Procedures, and Hazardous ChemicalsManagement System, implementing waste discharge monitoring plans and targets to strengthen waste managementand enhance pollution prevention.Our operations fully adhere to the Solid Waste Pollution Environment Prevention Law and related environmentalstandards. We have implemented a categorized waste management system with full-process environmental riskcontrols:

Standardized Disposal ProcessWasteGeneration

Conduct source segregation for 21 sub-categories across 5 major hazardous wastetypes (including spent activated carbon, waste coating liquid, waste mineral oils[lubricants/heat transfer fluids], used PPE, and HW49 packaging containers), usingspecialized sealed containers for collection.StorageManagement

Maintain dedicated hazardous waste storage facilities compliant with GB18597standards, implementing specialized personnel management. Storage areas equippedwith leak-proof pallets, collection pits, and fire emergency devices. Electronic trackingsystem records real-time data on generation, storage, and transfer of each wastebatch.Transfer &Disposal

Submit annual management plans via provincial solid waste management platform.Entrust licensed contractors (holding Hazardous Waste Operation Licenses) fordisposal. Strictly implement manifest system, achieving 100% compliance rate in 2024.

Full-process Supervision MechanismQualification

Review

Established supplier ESG evaluation system conducting triple verification ofcontractors' technical capabilities (including approved EIA disposal methods) andtransportation qualifications (Dangerous Goods Transport Licenses).ProcessTraceability

Implement methods such asvehicle trajectory tracking, disposal video documentation,and periodic on-site audits to ensure end-to-end traceability from facility to finaltreatment.

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

RecyclableWaste

All production bases have established sorting stations to classify and process wastemetals, plastics (PP/PE), cardboard, wood, and production scraps. After compaction,these materials are sent to recycling enterprises, achieving a recycling rate exceeding95%.OtherGeneral

Solid Waste

Non-recyclable packaging materials and industrial waste are collected separately andsent to municipal-designated facilities for safe disposal. Domestic waste is sorted andincorporated into urban sanitation systems with daily scheduled collection.

Annual training on industrial solid waste (including hazardous waste) management ensures proper classificationand disposalISO 14001 Environmental Management System certified, with established emergency response plans forenvironmental incidents

Pollutant Emission Indicators2024Annual NOx Emissions (tons)

42.10

Annual SOx Emissions (tons)

1.08

Annual VOC Emissions (tons)

35.79

Annual PM Emissions (tons)

1.60

Annual COD Emissions (tons)

25.88

Annual Ammonia Nitrogen Emissions (tons)

1.34

Annual Total Nitrogen Emissions (tons)

13.05

Waste Discharge Indicators2024Total Hazardous Waste Generated (tons)2,251.70Total Non-Hazardous Waste Generated (tons)22,569.14

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

Wastewater

?Management System: Wastewater Management Regulations?Emission Types: Industrial wastewater, domestic sewage?Testing Parameters: pH, ammonia nitrogen, chemical oxygen demand (COD), total nitrogen,suspended solids, five-day biochemical oxygen demand (BOD5), total phosphorus,adsorbable organic halogens (AOX), total organic carbon (TOC)?Pollution Control Facilities: Industrial wastewater treatment station, septic tanks?Treatment Method: Industrial wastewater undergoes pretreatment at plant wastewater

station to meet standards before municipal treatment; domestic sewage is discharged intomunicipal network after septic tank treatment

Waste Gas

?Management System: Waste Gas Management Regulations?Emission Types: Canteen fumes, workshop exhaust?Testing Parameters: Oil fumes, non-methane total hydrocarbons (NMHC), particulate matter

(PM), total suspended particulates (TSP), odor concentration, smoke blackness, nitrogenoxides (NOx), sulfur dioxide (SO2)?Pollution Control Facilities: Water scrubbers, dry filters, microwave catalytic devices,activated carbon adsorption units, regenerative thermal oxidizers (RTO), canteen fumepurifiers?Treatment Method: Treated through exhaust gas control systems for compliant emissions

HazardousWaste

?Management System: Hazardous Waste (Solid Waste) Management Regulations?Emission Types:

Used PPE, waste containers, spent activated carbon, dry film scraps, waste

coating liquids, laboratory waste, waste mineral oils, biochemical sludge, etc.?Pollution Control Facilities: Hazardous waste storage warehouse?Treatment Method: Processed by licensed contractors

GeneralIndustrialSolid Waste

?Management System: Hazardous Waste (Solid Waste) Management Regulations?Emission Types: Wood scraps, paper tubes, cardboard, plastics, metal scraps, packing

straps, insulation wool, air hoses, labels, domestic waste, food waste, etc.?Pollution Control Facilities: General industrial solid waste storage warehouse?Treatment Method: Recyclables processed by licensed recycling companies; non-recyclables handled by municipal sanitation departments in compliance with environmentalrequirements

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

Weplace high importance on the risk management of emissions and waste, having established a comprehensiveenvironmental management system to ensure that waste treatment and emission activities comply with relevant legaland regulatory requirements. We actively identify risks associated with emissions and waste, analyze and develop

corresponding mitigation measures. Through strict waste classification, recycling, and disposal processes, we minimize

environmental impact, continuously reduce environmental risks, and provide a solid foundation for achieving sustainabledevelopment goals.

RiskRisk DescriptionMitigation MeasuresLevel

Environmentalpressure fromwaste disposal

During production and manufacturing,solid waste and gas emissions aregenerated. Improper handling of suchwaste may impact surroundingecosystems and communities.

? Classify and reduce waste at the source,prioritizing non

-toxic and low-pollution production

materials.? Adopt environmentally friendly materials andprocesses, and enhance the development ofwaste resource utilization technologies.

Low

Compliance risksfrom improperhazardous wastedisposal

Hazardous waste generated duringproduction and manufacturing mustbe handled in accordance withregulations. Non

-compliance with

environmental laws may result in legalaction and substantial fines.? Collaborate with qualified third

? Collaborate with qualified third

-party disposal

agencies and strictly document waste flows.? Establish a comprehensive hazardous wastemanagement system and conduct employeecompliance training.

Low

Resource waste due to inadequate waste classification

Failure to classify solid waste generated during production may lead to loss of recyclable resources, increasing disposal costs and environmental burdens.

? Implement source classification by providing separate containers for different types of waste. ? Launch waste resource utilization projects and partner with upstream and downstream circular economy enterprises.

Low

Emissions andWaste

2024 Management Targets2024 AchievementsHazardous Waste

100% compliance rate for hazardous waste treatment

Achieved: 100% compliance rate for hazardous waste treatment

WasteClassification

100% waste classification and disposal rateAchieved: 100% waste classification anddisposal rate

Achieved: 100% waste classification anddisposal rate

Exhaust Gas

Compliance with the "Emission Standard ofPollutants for Synthetic Resin Industry" (GB31572

2015)Achieved: 100% compliance rate for

exhaust gas emission standards

Achieved: 100% compliance rate for

exhaust gas emission standards

Wastewater

Compliance with the standards in the accesspermit/"Discharge Standard of Pollutants forMunicipal Wastewater Treatment Plants"(GB18918

-2002), Level A

Achieved: 100% compliance rate forindustrial wastewater discharge standards

Noise

Compliance with the "Emission Standard forIndustrial Enterprises Noise at Boundary"(GB12348

-2008), Class 2 standards, with the

eastern boundary meeting Class 4 limits

Achieved: 100% compliance rate for noisecontrol standards

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

We place high importance on circular economy practices. In 2021, the Materials Management Department wasestablished to oversee the recycling of auxiliary materials. Starting with the Hangzhou base, dedicated recycling andcleaning teams were set up, gradually expanding to domestic bases in Chuzhou, Jiaxing, Suzhou, and others. In2024, the recycling initiative was launched at the Thailand base.Initially, the company focused on comprehensiverecycling partnerships with large and medium-sized clients, later extending coverage to medium-sized clients. Forclients with lower recycling rates, tailored solutions were implemented, significantly improving recycling rates by 40–50 percentage points. Through close collaboration with clients, we continuously enhances auxiliary material recyclingefficiency, achieving cost reduction and operational efficiency goals.To standardize recycling processes, we have established robust internal management systems, including:

Standardized Documentation for Handling Client-Side Cleaning Workshop Exceptions, Regulations for Client-SideAuxiliary Material Vehicle Arrangement Processes, and recycling and cleaning standards for various auxiliarymaterials (e.g., wooden liners, paper tubes, wooden pallets, plastic tubes). Regular training is provided to cleaning

teams and relevant departments to ensure efficient and compliant recycling operations.In addition, the company actively explores innovative circular economy models. Through the adoption of sustainablepackaging solutions such as recyclable iron racks, and innovative measures like the scheme of using cartons toreplace paper tubes, we reduce resource consumption and waste generation at the source. It maximizes therecycling of resources, further promotes the construction of the company's green value chain, and provides strongsupport for the realization of the circular economy goals.In 2024, the company achieved significant year-on-year growth in recycling volumes, with plastic tube recyclingincreasing by 511,000 units, paper tubes by 429,000 units, wooden liners by 1,736,000 units, and plastic pallets by399,000 units. These results reflect the company's ongoing progress and efficient management in resource circularity.

Auxiliary Material

2024 Recycled Volume

2024 Recycling Rate

2023 Recycled Volume

2023 Recycling Rate

Plastic tubes

2.608 million102.41%2.097 million100.80%

Paper tubes

1.964 million88.37%1.535 million91.16%

wooden liners

8.438 million94.17%6.702 million95.12%

Wooden pallets

1.280 million88.81%1.337 million93.71%

Plastic pallets806,000103.23%407,000110.35%

Our Jiaxing facility commenced pilot testing of the reusable iron rackproject in January 2024 and officially implemented it in May 2024.By the end of 2024, a total of 1,176 iron racks had been deployed, with25,812 recycling cycles completed throughout the year. Each use of aniron rack saves materials including 2 cardboard boxes, 4 wooden liners,and 1 wooden pallet. In 2024, the Jiaxing facility achieved cumulativesavings of 51,624 cardboard boxes, 103,248 wooden liners, and 25,812wooden pallets.

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

Chemical management constitutes a critical component of our production safety system. In addressing thespecialized requirements, we rigorously comply with applicable laws and regulations, and have established thefollowing management systems:Safety Management System for Precursor Chemicals, Explosive Chemicals andHighly Toxic Chemicals,Hazardous Chemical Management System,Hazardous Waste (Solid Waste) ManagementRegulations,Safety Management Regulations for Chemical Ingredient Warehousing,Hazardous Chemical StorageSafety Management System,Hazardous Chemical Safety Information Card Management System.We have compiledcorresponding MSDS Safety Technical Requirements and established a Hazardous Chemical Inventory tostandardize transportation, handling, storage, labeling, usage, disposal and treatment of hazardous chemicals.

Chemical Substance Management SystemWe have implemented and strictly enforces the Hazardous Chemical Management System, establishing acomprehensive closed-loop supervision framework encompassing the entire lifecycle from R&D, procurement,production, storage/transportation, usage to waste disposal.ThroughStandardized MSDS management,Dedicatedwarehouse management,Professional emergency response protocols,Annual safety retraining programs,weeffectively execute hierarchical classification management of hazardous chemicals. Regular EHS audits andoccupational health risk assessments ensure full compliance withGB 15603General Rules for Hazardous ChemicalStorage WarehousesandISO 14001 Environmental Management System requirements.These measures minimizeoccupational health risks and ecological impacts while continuously enhancing intrinsic safety.Hazardous Chemical Lifecycle Management Process

MSDS registration +process riskassessment

<R&D Design>

Approved supplier list +

transportationqualification verification

Explosion-proof

workshops +automated control

systems

<Production/

Packaging>

Zoned classification +smart monitoring(temperature/humidity/l

eakage)

Manifest tracking +harmless treatment

Quantitative dispensing +

emergencydecontamination facilities

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

WeissueNo.1documentannuallytosetforthsafetymanagementrequirements,formulatingannualsafetytargetsforeachaspectofchemicalsafety,andweachieved100%ofthesetgoals.Inareasinvolvingchemicalusageandstorage,suchasproductionandR&D,weenforcestringentregulatorymeasures,andmaintainclearsignagetomitigaterisks.Weemployexpertstoidentify,purchase,use,andstorechemicals,andorganizerelevanttraining

periodically.Thisensuresclarityontheprocurement,storage,collection,anduseofchemicals,andpromote

protectiveandemergencypractices.

ResponsibilityExecuting Department

RegulatoryDepartment

R&D Department: Identify and make optimal choices based on the characteristics ofvarious chemicals, responsible for updating, replacing, or phasing out chemicals, andfor testing and hazard assessment of new chemical substances.

EHS Department

RegulatoryResponsibilityThe functionaldepartment for themanagement ofhazardous chemicals.It is responsible forcompiling a list ofhazardous chemicalsand safety

information cards,

managing andsupervising theexecution ofhazardous chemicalusage processes andpersonnelqualifications, andmanaging therecycling anddisposal of relatedwaste materials.

Emergency HandlingEstablish emergencyresponse plans for

hazardous chemicals,

standardizing thehandling methods foraccidents of differenttypes and scales(including adsorptionof spills, cutting offleaks, organizingevacuations, etc.).When necessary,initiate emergencyplans and report tothe relevantdepartments.

Procurement Department: Ensure compliance with laws and regulations governing theprocurement, transportation, and storage of hazardous chemicals. Source fromsuppliers possessing the "Hazardous Chemicals Production and Operation License,"

verify the transportation unit's qualification, and establish safety agreements with bothsupplier and transporter.

User Department: Complete the

Hazardous Chemical Inventory

for approval and record by the EHS department. Supervise hazardous chemical use, ensuring adherence to MSDS and proper personal protective equipment. Maintain detailed records with the "Hazardous Chemicals In and Out Ledger," strictly following safety procedures, product instructions, and prevention measures. Properly collect and store chemical waste, collaborating with the EHS department to determine waste type and develop compliant disposal plans, entrusting qualified suppliers for disposal.
	Quality and Storage Department: Conduct thorough safety and quality inspections during hazardous chemical storage, adhere to national laws and regulations for storage locations, prominently display warning signs, and maintain daily safety management of storage sites and surrounding areas.

Procurement Department: Responsible for executing the chemical purchase andtechnical agreements, as well as establishing safety technical standards for rawmaterials. All suppliers must provide chemicals with MSDS documents and COAcompliant with company regulations and national standards.EHS Department: Tasked with formulating and inspecting rules and regulationspertaining to hazardous chemicals management, including the regular update ofsystem documents.

EHS Department: Tasked with formulating and inspecting rules and regulations pertaining to hazardous chemicals management, including the regular update of system documents.
	User Department: Conducts operations in adherence to established standards outlined in documentation provided by the EHS Department and procurement agreements.
		User Departments: Must establish corresponding signs for the use of chemical labels.
			EHS Department: Establishes the corresponding signs.

Supplier: According to the national standard 'Regulations for the Compilation ofChemical Safety Labels' (GB 15258

-1999), safety labels must use a combination of

text, graphic symbols, and codes to indicate the hazards and safety precautions ofchemicals; safety labels should be affixed, hung, or printed by the manufacturer in aconspicuous position on the packaging or container before the goods leave the factory;if the packaging is changed, the changing unit must re

-affix, hang, or print the labels.

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

Basedonthecharacteristicsofchemicals,wehavecategorizedthemintothreetypes:chemicalspronetobeingusedfordrugandexplosiveproduction,hazardouschemicals,andotherchemicals.WemanagestrictidentificationanddifferentiationaccordingtotheMSDS Safety Technical Requirementsforeachtypeofchemical.

1)Internally,thecompanyisoptimizingtheuseofhighlyhazardousandtoxicchemicals,withtheR&Ddepartmentresponsibleforgraduallyresearchingphase-outorimplementingreplacementplans.

2)Incompliancewithnationallaws,westrictlyprohibitstheuseofproblematicchemicals,updatingthecatalogasperregulations.FollowingtheJune2023announcementbytheMinistryofEcologyandEnvironmentand11otherdepartmentsregardingrestrictionsonfivetypesofpersistentorganicpollutants,includingPolychlorinatedNaphthalenes,we'veassessedourchemicalusage.Anyidentifiedchemicalshavebeeninvestigated,andphasedoutinaccordancewithregulations.

Chemicals Prone toMisuse for Drug andExplosive Production

In adherence to relevant laws such as the People's Republic of China NarcoticsControl Law,and Regulations on the Control of Chemicals Used for Illicit DrugProduction,we've established SOP-EHS-030 Safety Management System forPrecursor Chemicals, Explosive Chemicals and Highly Toxic Chemicals.There is strictmanagement in the production, operation, transportation, and storage of chemicalsprone to being used for drug production, with one specially designated keeper withnational qualifications for the safety management of chemicals used for illicit drugproduction and two part-time keepers responsible for related affairs. Chemicals arestored separately with a dual-lock system, and inventory records are meticulouslymaintained. Monthly inventory checks are conducted, and any issues are promptlyreported to local authorities. Emissions, wastewater, and waste residue are treated tomeet national regulations, with no mixing allowed for disposal.

Hazardous Chemicals

We adhere to the Regulations on the Safety Management of Hazardous Chemicalsand have established SOP-EHS-018Hazardous Chemical Management System.Precise control is maintained over procurement, transportation, storage, use, anddisposal, guided by SOP-EHS-040 Hazardous Chemical Storage Safety ManagementSystemand SOP-EHS-048Hazardous Chemical Safety Information CardManagement System.Other Non-HazardousChemicals

Non-hazardous chemicals are managed according to company standards, with theR&D department identifying material characteristics, the EHS department outliningmanagement requirements, and the user department overseeing daily safetymanagement.

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

Ourassessmentofnewsubstancehazardsfocusesonhumanhealthimpactsandenvironmentalrisk.Webeginbyidentifyingcharacteristicssuchasphysicochemicalproperties,toxicology,andhazards.Then,wedeterminepotentialharmsbyanalyzingdatatoidentifyshort-termorlong-termeffects,includingdirecthealthimpactsorpotentialenvironmentalharm.Finally,wedevisecontrolmeasuresbasedontheseassessments,includingstorage,workplacestandards,personalprotectiveequipment,andenvironmentalsafeguards.We'veestablishedarobustsystemforassessingandintroducingchemicalsubstances.OurmainrawmaterialsundergoRawMaterialIntroductionProcess,andspecialadditivesthroughanAdditiveIntroductionProcess,withhazardassessmentbeingacriticalstepinvolvingcollaborationacrossEHS,R&D,quality,process,production,andprocurementdepartments.Duringthesupplieronboardingprocess,werequirerawmaterialsupplierstoprovideproductRoHSandREACHcompliancereports.Materialsthatfailtomeettestingstandardsareexcludedfromprocurement,achievingdynamiczero-toleranceforhigh-concernchemicalsubstancesatthesourcingstage.

Ourcompanyengagesdeeplywithleadingglobalrawmaterialsuppliers,aligningtheintroductionandassessmentprocesseswiththeISO9001:2015QualityManagementSystemandcomprehensivelyincorporatingESGperformanceintothesupplierauditprocess.WeimplementSupplierManagementControlProceduretoregulate

supplierselection,assessment,performanceevaluation,andimprovementprocesses,ensuringcontinuouscompliancewithourrequirements.Chemicalrawmaterialsuppliersarevettedthroughamulti-stepprocessforinclusionintheApprovedsupplierlist:

supplierqualificationreview→sampleassessment→pilotassessment→semi-industrialassessment→changereview→supplieraudit(factoryinspection)→qualifiedsupplier;thePurchasingControlProceduredeterminespurchasevolumesbasedonsupplierassessmentcategoriesandlevels.Ourprimaryrawmaterials,suchasEthylene-VinylAcetateCopolymer(EVA)andPolyolefinElastomer(POE),havebeensourcedforyearsthroughprocurementcooperationwithgloballeaderslikeDowChemical,LGChem,andExxonMobil,withwhomwealsoengageinin-depthscientificresearchfornewproductdevelopmentandapplication.

Responseto Climate Change Environmental Compliance ManagementEnergy ManagementWater Resource UtilizationEmissions & Waste ManagementChemical Safety

FIRST 2024 ESG Report

In our technological innovation endeavors, we strictly comply with laws and regulations including the Law of thePeople's Republic of China on Scientific and Technological Progress and relevant industry standards. "InnovativeTechnologies for TheFuture" stands as one of our fundamental management principles. With PV encapsulationmaterials as our core business and polymer materials at our technological center, we have successively developedand commercialized new materials for electronic circuits, lithium battery encapsulation, water purification, andapplications in automotive/5G/display fields. Every technological breakthrough we have achieved through over twentyyears of industrial exploration stems from persistent research and innovation, which has firmly established us as atechnology-driven enterprise with profound R&D heritage.

Zhejiang FIRST NewMaterials Research Institute

FIRST has established three specialized research institutions for technological innovation - Zhejiang FIRST AdvancedMaterial Research Institute (a Zhejiang Provincial Key Enterprise Research Institute), the Electronic Materials R&DCenter (a Provincial High-Tech Enterprise R&D Center), and the Technical Committee (an Internal SpecializedManagement Unit).

The Corporate Technology Center serves as the highest-level scientific management authority and the core of ourinnovation ecosystem. It functions as the crucial platform for advancing technological progress, transforming traditionalindustries through high-tech applications, and facilitating industrial upgrading.

The Corporate Technology CenterZhejiang FIRST AdvancedMaterial Research Institute

Electronic Materials

R&D Center

Technical Committee

The Zhejiang FIRST New Materials Research Institute primarily focuses on researching

cutting-edge projects in PV encapsulation technology, addressing critical technicalchallenges in key encapsulation materials for the new energy industry chain, guidingindustry development trends, and promoting the advancement of the new energy sector.

Breakthroughs in key issues of encapsulation materials will directly impact the

application and development of PV new energy technologies, thereby influencingincreasingly pressing environmental concerns.

The Electronic Materials R&D Center concentrates on electronic chemical materials asa major category of emerging industrial materials, conducting research anddevelopment on photosensitive dry films, FCCL, and photosensitive solder resist. Itactively implements strategic plans for optoelectronic new materials, strengthens thecompany's R&D capabilities in advanced materials, and ensures sustainable growth.The Technical Committee is primarily responsible for providing technical guidance fornew product research, maintaining forward-looking leadership in encapsulation materialdevelopment. Additionally, it oversees the daily operations and administrative affairs ofthe Corporate Technology Center, ensuring the smooth functioning of all product

divisions.

Electronic Materials R&D

Center Building

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and QualityData Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

Sinceitsestablishment,FIRSThasconsistentlyprioritizedindependentinnovationasitscoreprinciple,guidedbythecompany'stechnologicalinnovationdevelopmentstrategy.Inaccordancewithbusinessdevelopmentneeds,FIRSTstrategicallycoordinatestechnologicalinnovationactivities,annuallyinvestingover3.4%ofsalesrevenueintovariousscientificandtechnologicalinnovationinitiatives,withindependentaccountingandspecializedmanagementforallapprovedprojects.ToenhanceR&Defficiencyandtechnologycommercializationcapabilities,wehaveestablishedacomprehensivescientificresearchinstitutionalsystem,including:ResearchandDevelopmentProjectManagementSystem,DesignandDevelopmentControlProcedures,TechnologicalAchievementEvaluationandRewardMeasures,FIRSTScientificResearchFundingManagementSystem,andFinancialAccountingSystemforR&DProjectInvestments.Thesesystemscovermultiplestagesincludingprojectinitiation,processcontrol,achievementevaluation,andfundingmanagement,ensuringstandardizedandefficientR&Dactivitieswhileprovidingsolidsupportfortechnologicalinnovationandsustainabledevelopment.

As of December 31, 2024, we employed 715 R&D technical personnel, with approximately 18% holding master'sdegrees or higher. R&D technical personnel accounted for about 15% of the total workforce. We maintains strongcommitment to R&D investment, with cumulative annual R&D expenditures reaching RMB 645 million in 2022, RMB792 million in 2023, and RMB 657 million in 2024, maintaining industry leadership.

R&D Metrics and Targets2024 Target2024 AchievementR&D Investment (RMB billion)≥0.650.657R&D Personnel Maintain stabilityAchieved stable maintenance

In 2024, FIRST actively participated in national and provincial-level key R&D projects, driving industry technologicaladvancement and sustainable development.?Successfully passed the acceptance of the sub - project "R&D of High - reliability Encapsulation Film Products

and Technologies" under MIIT's industrial foundation reconstruction and high - quality manufacturing project.?Participated in the Ministry of Science and Technology's National Key R&D Program "Large - area Perovskite

Module Large - scale Preparation Technology and Demonstration Power Station Application", now in the critical

stage.?The "Key Technology and Application Development of

High-Reliability Encapsulation Materials for N-Type High-

Efficiency Batteries" won the 2024 Zhejiang Province

Science and Technology Progress Second Prize.?The Zhejiang Province "Pioneer" and "Leading Goose"

Research Plan project "Development of Thin Film

Encapsulation Materials for Flexible OLED" was

successfully completed.

?"Development and Industrialization of High -performance Photoresist" was selected as a keyscientific research project of Hangzhou in 2024.?"Development of Interconnection Ribbon Carrier

Film for HJT Cells" was selected as atechnology research project in Lin'an District in2024

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and Quality

Data Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

We are a platform-type material enterprise. Since the successful developmentof EVA film in 2003, we have been deeply rooted in the PVmaterial field forover20years, carrying out thorough research on the formula, process, andequipment of PVfilms and backsheets. In recent years, building on a keycommon technology platform, we have continuously researched and developednew material products such as electronic materials and functional materials,possessing strong internal growth momentum. In the future, we will steadfastlyimplement the development strategy of "Focus on the main PV business, and

vigorously develop other new material industries," driven by technologicalinnovation to achieve the domestication of more key new materials.

We have alwaysindependently developedand constructed film production equipment,mastered core design and manufacturing technologies, with a strong team ofover 200people, and a systematic professional talent training system to meet the equipmentconstruction needs of production bases globally. Upholding the business tenet of"innovative technology for the future," we continuously provide technologicalbreakthroughs for various products in terms of R&D, quality, and efficiency, serving thedifferentiated requirements of customers and markets. Focusing on the innovativedevelopment of equipment automation and digitization, we have deepened applicationsin production, storage, energy, and other aspects, adapting to the trends of industrydevelopment. With sustained investment and cultivation in equipment technology,coupled with the dual advantages of equipment and product technology, we remain ourcore competitiveness.

We have established a professional digital team, and have developedERP,MES, WMS, EAM systems covering the main products of each subsidiary in the

group, obtainingfive software copyrights. We have also acquired professionalsoftware such as OA, SRM, TMS, and our software developers have linkedvarious systems together. Through a combination of software procurement andself-development, these systems play a significant role in the company'sproduction and operations. Our software personnel apply IoT, digital twintechnology, edge gateway computing technology, etc., to actively enhancemanagement efficiency and increase production capacity.

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and QualityData Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

As a global leader in PVencapsulation film technology, we consider intellectual property strategy a core component ofour competitive advantage. Recognized as a National Intellectual Property Advantage Enterprise and ZhejiangProvince Intellectual Property Demonstration Enterprise, FIRST has established a comprehensive IP systemencompassing management, creation, utilization, and protection. In 2024, through deepened international cooperation,patent navigation projects, intelligent management system upgrades, and multi-level talent development, we achievedtransformative progress in IP, laying a solid foundation for global expansion and sustainable growth.

2019: First time passedGB/T29490-2013 certification(No.18119IP5388ROM), and initially established an intellectualproperty management system.2022: Passed the three-year re-certification, which verified the continuous effectiveness of the system.2024: Successfully passed the surveillance audit, further demonstrating the maturity and stability of the system.

FIRSThasimplementedarobustorganizationalstructure,institutionalsafeguards,anddigitaltransformationtoensureefficientandcompliantIPgovernance,providingstrongsupportforinnovation-drivendevelopment.FIRSTmaintainsadedicatedIPdepartmentwith5full-timeprofessionals:4certifiedpatentagentsand1multi-qualifiedexpert(patentagent+legalpractitioner+intermediatepatentmanagementengineer+IPengineer).This

"legal-technical-management"competencymatrixensurescomprehensiveIPcoverageandoperationalsynergy

acrossalldimensions.

We implement tiered training programs to cultivate IP talent:

?R&DPersonnel:Annualtraining:≥4sessionsonPatSnapPatentSearchHands-OnTrainingandInternal

TechnicalDisclosureWritingWorkshop.2024achievement:83%ofpatentsreachedGradeB+orhigher.?IPEngineers:Monthlyadvancedcoursescoveringpatentinvalidationstrategies,retrieval/analysis,litigationcasestudies,authorizationprocedures,innovationtools,andinternationalpatentoperations.Annualtraining:≥12sessionstoenhanceprofessionalcompetencies

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and QualityData Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

FIRST consistently regards intellectual property creation as the core driver of corporate innovation and development.Through technological leadership and innovation-driven strategies, we have established a robust patent portfolio andR&D collaboration mechanism, laying a solid foundation for sustainable growth.By implementing the Zhejiang Province Patent Navigation Project and aligning

with independent R&D needs, FIRST conducts targeted analysis of

technological gaps and competitive landscapes, effectively reducing R&D costs.Concurrently, we have established a patent database to monitor globaltechnological trends in real-time, guiding iterative optimization of R&D directions.As a Zhejiang Province Intellectual Property Demonstration Enterprise andNational Intellectual Property Advantage Enterprise, FIRST continues to leadindustry trends in IP development. The company's GB/T29490-2013 IntellectualProperty Management System certification has further standardized IPmanagement processes, enhancing efficiency and compliance while providingstrong safeguards for technological innovation and IP protection.

As of December 31, 2024, FIRST has cumulatively filed 945 patent applications (including design patents),comprising:742 invention patents (301 granted and valid), 189 utility model patents (136 granted and valid). Coretechnologies cover photovoltaic film materials, process optimization, and equipment innovation. During thereporting period, the company filed 98 new invention patent applications and obtained 53 grants. In 2024, FIRSTfiled 16 new international patent applications, strategically targeting key markets including Europe, the U.S.,Japan, and South Korea, thereby strengthening global technological barriers.

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and QualityData Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

FIRST places high importance on global IP protection, ensuring compliance and competitiveness in internationalmarkets through strategic patent deployment and risk early-warning mechanisms.In 2024, FIRST prioritized patent deployments in keymarkets including Europe, America, Japan and SouthKorea, completing 16 international patent applications

covering core products and next-generation technologies.Collaborating with top-tier overseas law firms, weestablished patent risk early-warning models for targetmarkets to predict potential infringement litigation anddevelop contingency plans, safeguarding global IPsecurity.

We have implemented a comprehensive IP risk early-warning mechanism. Through real-time monitoring andanalysis, we promptly identify and address potentialpatent infringement risks to protect corporate interests.Leveraging our robust IP portfolio and professionallegal team, we actively defend our legitimate rights toensure stable market positioning, providing solidsupport for global operations.

FIRST actively expands exchanges and cooperation with governments, industry organizations and domestic/foreignIP service institutions to continuously enhance IP protection capabilities.At the end of 2024, leaders from the China National Intellectual PropertyAdministration visited FIRST for discussions, providing valuable guidance for ourIP work. This exchange not only demonstrated governmental recognition of ourIP achievements, but also offered important references for optimizing future IPstrategies.Coinciding with the 2024 AIPPI World Intellectual Property Congress inHangzhou, FIRST seized the opportunity to strengthen cooperation with patentagencies, conducting in-depth discussions on patent/trademark authorizationand protection in the U.S., Europe, Japan and South Korea. These exchangesenhanced mutual understanding in IP fields, jointly improving protectionefficiency and quality to create safer, more stable business environments. Thedeepened cooperation with global IP service partners has broadened ourinternational perspective while providing additional resources for worldwide IPprotection.Intellectual property serves as critical support for driving continuous innovation and high-quality development.

Adhering to our "Innovation Leadership, Knowledge Empowerment" philosophy, we will keep optimizing IPmanagement systems and enhancing capabilities in IP creation, utilization, protection and administration tosafeguard long-term development. We remain committed to strengthening patent quality and global operationcapabilities to create sustainable value for shareholders, customers and society.

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and QualityData Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

Adhering to the long-standing quality policy of "Innovative Technology for The Future, Customer First with QualityForemost", FIRST consistently drives development through innovation and quality, delivering reliable products andservices to customers. Our Hangzhou headquarters and all production bases are ISO9001:2015 certified, with PVencapsulation film products complying with national, industry, and corporate standards.We have established a comprehensive quality management system with both headquarters and base-level qualitydepartments.HQ Quality Department: Responsible for system construction, process design, product qualityassurance, data analysis, and improvement initiatives.Base Quality Departments: Implement PDCA cycles for full-process quality control, utilizing QMS for cross-base standardization - from PFMEA/control plan development toexecution monitoring of standards, inspections, and operating procedures.Through real-time monitoring andbenchmarking across bases, we identify variances for optimization. The QMS automatically triggers workflows forabnormal incoming/process/final inspections, with ERP-enforced quarantines. The system also monitorsmaterial/WIP/finished goods shelf life with automatic re-inspection triggers. Complaint processes feature time-nodetracking, closure rate statistics, and tiered classification to standardize analysis and build improvement case libraries.As of reporting period, 100% of production subsidiaries (Hangzhou HQ, Electrical Materials, Functional FilmMaterials,Suzhou, Chuzhou, Thailand, Jiaxing, Vietnam) maintain ISO9001 certification.

SystemSystem NameCoverage of Production SubsidiariesISO9001Quality Management System100%

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and Quality

Data Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

We implement comprehensive quality management across multiple processes and all production bases to achieve fullproduct lifecycle quality control. The responsibilities of the headquarters quality department during the productlifecycle include:

Development Quality

?Reliability and shelf-life validity evaluation during productdevelopment?Quality risk identification at each development stage?Maturity assessment and improvement at each development phase

SupplierManagement

?Compliance evaluation of materials during supplier onboarding?Quality performance tracking and improvement throughout supplier

lifecycleImprovement

Activities

?Cross-base quality data benchmarking and improvement?Product/process/system audits and enhancements at production

bases?Cross-base QCC (Quality Control Circle) activities and specialized

improvements

Change Management

?Risk identification and assessment for changes?Process control and compliance assurance during changes

DocumentationControl

?Hierarchical access design for management systems

?Integration of management system planning with QMS (Quality

Management System)Complaint Management

?Tiered classification and management of complaints?Performance evaluation of complaint resolution timeliness and

improvement effectivenessAfter-sales Service

?Evaluation of customer production processes, equipment, and

product compatibility?Technical support for product application issues at customer sitesMetrologyCertification

?Unified measurement planning and implementation across bases?Monthly testing benchmarks and improvements across bases

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and Quality

Data Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

With the continuous growth of our global operations, we place high importance onproduct and service safety and quality, actively participating in the AEO (AuthorizedEconomic Operator) recertification process. As an AEO-certified enterprise -thehighest customs credit rating -this certification effectively reduces cross-borderregulatory costs, enhances logistics efficiency, and further ensures the security andconvenience of our global supply chain. This enables us to provide efficient servicesand supports timely, high-quality order fulfillment. Concurrently, FIRST has beenrecognized as a AAA-Level Enterprise for Contract Compliance andCreditworthiness in Zhejiang Province. In sales, procurement, and various projectcontracts, we strictly adhere to these standards to ensure full compliance withcontractual terms, maintaining long-term stable customer trust and partnerships.These initiatives not only improve customer satisfaction but also demonstrate our

commitment to responsible global operations.To refine evaluation categories and more accurately assess customer satisfaction, we optimized our surveymethodology in 2024 by adjusting calculation methods and raising scoring criteria, resulting in slightly lower overalland categorical scores compared to previous years.Regarding product quality, we continue to enhance productionmanagement to ensure consistent quality while controlling costs. For services, we have expanded our rapid-responsecapabilities and established comprehensive customer support systems to deliver more efficient and thorough service.Moving forward, we will remain customer-centric in continuously improving our products and services.

Key product evaluation dimensionsProduct Quality Dimensions

Sales & Technical Service

Dimensions

Delivery Quality (Packaging &Timeliness Dimensions)Product SafetyCustomer Needs UnderstandingPackaging ProtectionBatch-to-Batch ConsistencyFeedback ResponsivenessOn-Time ArrivalPerformance ComplianceIssue Resolution CapabilityDelivery Service Attitude

Usage EffectivenessProblem-Solving SatisfactionPunctual DeliveryComplete Test ReportsTechnical Service ExpertiseSupply Capacity Reliability

Customer Satisfaction Performance2024 (New Evaluation Mechanism)20232022

?Customer SatisfactionRate≥96%(Under newevaluation mechanism)?Target Achieved: 2024Customer SatisfactionRate 97.14%

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and QualityData Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

We implement standardized process management for customer feedback. All complaints enter the workflow within 24hours of receipt, undergo severity rating based on three dimensions (severity, frequency, and impact), and are thenclassified into different sub-processes according to established rules, generating statistics on timeliness, improvementeffectiveness, and closure rates.Dimension

Evaluation Dimension/Complaint Classification

Level Classification

ResponsibleDepartment

Lead Department

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and QualityData Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

FIRST places paramount importance on data security and customer privacy protection, strictly complying with theCybersecurity Law of the People's Republic of China. We strictly adhere to the Level 2 security requirements tocomprehensively advance our information data security system, ensuring robust protection of customer data securityand privacy. Through refined management measures and technical solutions, we are committed to providing secureand reliable services while continuously enhancing data security management standards.FIRST has established the FIRST Information Security Management Policy and Confidentiality Management Policyfor data security and privacy protection, along with 4 additional policies including Data Center Management Policyand Data Center Emergency Response Plan for infrastructure security. Our IT leadership oversees overall datasecurity planning and implementation, while the IT Department is fully responsible for detailed construction of datasecurity solutions.FIRST has conducted thorough identification and analysis of potential data security risks across all stages of the datalifecycle (generation, transmission, storage, usage, and destruction).In the data generation phase, the primary risksinvolve data quality and access control. To address these, the company has established a data classification systemand access authorization protocols, with designated departments responsible for data creation and archiving to ensure

high data quality and proper authorization.For data transmission, the main concern is the risk of network transmissionleaks. FIRST has implemented multiple security measures including internal/external network firewalls, segregatedoffice and guest networks, and SSL protocol encryption to enhance transmission security.Regarding data storage, thekey risk is data loss. The company has significantly improved storage security by building a hyper-converged datacenter, implementing automated backup solutions, and establishing an off-site disaster recovery center.During data

usage, the prominent risks are data tampering and leaks. FIRST ensures data and network security through

standardized system interfaces and by installing encryption and antivirus software on endpoint devices.For data

destruction, the company plans to develop strict data standards and procedures to prevent improper destruction of valid

data and ensure compliant destruction processes.FIRST has established a comprehensive data security management system. The IT Department is responsible foridentifying and monitoring security risks throughout the data lifecycle to ensure end-to-end protection. The Equipment

Management Department maintains the stability and security of storage devices while using network security equipment

to monitor network behavior and endpoint security in real-time, providing technical safeguards.Recognizing that datasecurity requires both technical solutions and employee awareness, the IT Department conducts regular annual training

on data security and confidentiality. This strengthens staff risk prevention awareness and operational standards,building a dual-focused protection system that combines technology and awareness to ensure comprehensive andsustainable data security management.

Data Security Incidents

Zero incidents with zero financial loss

Achieved: Zero incidents

Data Security/Customer PrivacyProtection Training

1 session (≥80% coverage)Achieved: 1 session (86% coverage)

Sensitive Data Encryption Rate

100%Achieved: 100%

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and QualityData Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

In 2024, FIRST continued to strengthen supply chain security management, committing to build a more robust,transparent and responsible supply chain system. Through implementing a series of innovative strategies andmeasures, we have effectively enhanced supply chain security and resilience, ensuring product and service quality,cost efficiency, and positive contributions to environmental and social impacts.

the Board of Directors

Director

SalesDirector

FinanceDirector

Subsidiarybases

Decision-makingLevel:The "Procurement Committee", established

to ensure supply chain security and sustainable development, ischaired by the CEO with members including the Supply ChainDirector, Operations ManagementDirector, Sales Director andFinance Director. The committee holds ad hoc meetings to shareinformation on upstream/downstream markets, partners, policychanges, supply/demand dynamics, and reviews supply chain riskswhile adjusting strategies based on market trends to align withcorporate objectives.Execution Level:The headquarters established a Supply ChainCenter responsible for supplier ESG audits, supply market risk

analysis and early warnings to control risks at source.The Supply Chain Center oversees three departments:

Procurement Division I manages raw material procurement,imports and logistics carriers. Procurement Division II handlesauxiliary materials, additives, MRO procurement and systemplatform development. Materials Management Department focuseson packaging design, standards development and materialrecycling. Subsidiary bases have their own procurement/logisticsdepartments under headquarters' supervision.Coordination Level: Multi-department collaboration ensuressupply chain security and sustainability.Operations ManagemenDepartment develops production plans to

inform supply chain planning. Sales Departmentsharesmarket/downstream information to support strategies. FinanceDepartmentprovides funding security. Investment ManagementDepartmentmonitors external policy risksand gives earlywarnings. Legal Affairs Department conducts contract compliancereviews and legal risk monitoring

Oversight Level:The Internal Audit Department collaborates with third-party authoritative institutions (e.g., SGS) to

conduct annual comprehensive compliance audits of the supply chain. These audits thoroughly examine complianceissues across all supply chain segments, with results reported directly to the Board of Directors to support criticaldecision-making.

Information Reporting:Regular/ad hoc meetings facilitate decision-making, with major risks reported to committee

within 24 hours.

Performance Accountability: Supply chain security KPIs are incorporated into executive evaluations with "red-line

indicators" for departments, ensuring effective implementation throughout the organization.

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and QualityData Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

FIRST comprehensively identifies potential supply chain risks including supply disruptions, ESG risks, logistics risks,and compliance risks. Through regular risk assessments using scientific methodologies and tools, we accuratelydetermine the scope, duration and severity of various risks to inform targeted risk management strategies.

Natural Disaster RisksESG RisksLogistics Disruption RisksLegal Compliance Risks

Logistics Risk Early

Warning System

Utilizing big data and IT systems, FIRST has established a TMS (TransportationManagement System) to monitor logistics vehicle operations in real-time, enabling timelyrisk detection and early warnings to facilitate proactive responses.Emergency Plansand ResourceAllocation

We have developed comprehensive supply chain risk contingency plans coveringemergency response procedures, resource allocation solutions and alternative supplierselection. Through risk-sharing mechanisms with suppliers and logistics partners, we canrapidly mobilize resources during disruptions to minimize impacts and ensure supplychain continuity.Diversified SupplierStrategy

FIRST actively implements supplier diversification, continuously expanding supplierresources and optimizing supplier structure. Concurrently, we optimize logistics networkswith strategically located inventory buffers and safety stock to enhance supply chainresilience against potential disruptions.

We have established systematic supply chain security management processes encompassing risk identification,assessment, prioritization, monitoring and control. Through regular risk assessments and continuous improvement,we optimize processes to enhance supply chain transparency and resilience.Supply Chain Risk Response MechanismThrough M&A, technological innovation and other approaches, FIRSTintegrates resources to strengthen core supply chain competitiveness. Examples include investing inupstream/downstream enterprises to complete industry chains, and implementing smart supply chain managementthrough technological innovation to improve operational efficiency.Green Supply Chain DevelopmentFIRST actively promotes green supply chain initiatives including greenprocurement, production and logistics. To advance circular economy development while reducing costs and resourceconsumption, our Supply Chain Center established a Materials Management Department to promote reusablepackaging materials, adopt advanced technologies to minimize waste, optimize logistics networks, and enhanceoverall supply chain sustainability through collaboration with suppliers and customers.

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and QualityData Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

We have established the Supplier Management Control Procedure to implement standardized lifecycle managementof suppliers. Additionally, as an AEO (Authorized Economic Operator) Advanced Certified enterprise, FIRSTrigorously selects business partners and conducts comprehensive supplier evaluations based on customs advancedcertification standards, with particular focus on regulatory compliance and trade security performance.

Onboarding Phase

Conduct qualification reviews including basic information, certifications (e.g. ISO9001,ISO14001), and product qualifications (e.g. RoHS, REACH, TDS, MSDS)Perform small-batch and pilot production evaluations with documented reportsConduct on-site audits for critical suppliers covering 11 aspects: quality, production,facilities, supply chain, R&D, HSE, social responsibility, trade security, etc.

Classification

Annual Audit

Phase-out and Exit

Tiered management of qualified suppliers based on product criticality and performance

① Monthly/quarterly assessmentsfor qualified suppliers covering quality, delivery,pricing, and service

② Implement improvement guidance and incentive/penalty measures based on

resultsm. Continuously optimize the supplier structure.

① On-site audits are conducted by professional teams. Non-conformities are

documented along with the corresponding corrective actions, and the rectification ofthese issues is supervised

② 37 suppliers audited during reporting period with 27 non-conformities - 100%

rectified as scheduled

① Suppliers rated "D" in evaluations remains unqualified after being guided by

relevant departments, or is unanimously deemed by relevant departments to beeliminated, it will be phased out

② Immediate blacklisting for integrity violations or illegal activities with permanent

disqualification

PerformanceEvaluation

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and QualityData Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

FIRST has established a comprehensive supplier ESG management system that systematically integrates ESGprinciples throughout the supplier management process through institutional development and process optimization.The company formulated the Supplier Social Responsibility Management Regulations to incorporate supplier ESGperformance into management processes, and created the FIRST Supplier ESG Code of Conduct Commitmentrequiring suppliers to strictly comply with relevant laws and regulations in environmental protection, occupational

health and safety, business ethics, and management systems while actively fulfilling social responsibilities to promote

sustainable development.For implementation, FIRST ensures effective ESG compliance through dual mechanisms: First, a mandatory

commitment system achieved 90.5% signing rate of the Code of Conduct among qualified suppliers during thereporting period, with the remaining 9.5% deemed compliant through submitting ESG reports meeting therequirements. Second, ESG performance has been incorporated into the supplier audit system with a new "Social

Responsibility" module to ensure effective ESG practice execution through evaluation and continuous monitoring.

These measures not only strengthen supply chain ESG risk management but also provide robust support forsustainable industrial chain development.

To enhance upstream-downstream supply chain cooperation, FIRSTorganizes annual supplier conferences to facilitate interaction and clarifyresponsibility requirements. The 2024 conference themed "UpholdingStandards, Winning Through Quality, Navigating Cycles, Embracing theFuture" combined online and offline formats, gathering hundreds of keysupplier representatives across FIRST's partnership network. The eventemphasized suppliers' strategic importance, acknowledged theircontributions, and outlined new expectations regarding collaborativedevelopment, quality assurance, safety and integrity, and digitaltransformation.

Green Procurement and ProductionFIRST actively promotes greenprocurement by prioritizing eco-friendly materials and products. For production, weincrease technological innovation investment, adopt advanced processes andequipment to reduce energy consumption and emissions, achieving greenmanufacturing.

Green Logistics We continuously optimize logistics networks and transportationroutes to improve efficiency while promoting green logistics technologies like newenergy vehicles to reduce carbon emissions during transportation.Circular EconomyThrough collaborative pallet recycling projects with multiplesuppliers, FIRST utilized 85,203 shared pallets in 2024, reducing approximately

1,278 tons of disposable plastic pallet waste.

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and QualityData Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

Talent DevelopmentFIRST has established a comprehensive talent cultivation system for supply chainprofessionals, conducting regular specialized training through internal programs, external advancedstudies, and academic exchanges to enhance team expertise and comprehensive competencies.Team BuildingFIRST prioritizes building a high-caliber supply chain management team. Throughinternal training and external collaboration, we foster a positive team environment that strengthenscohesion and collaboration capabilities.

We are committed to achieving zero supply chain disruption risks. During the reporting period, through implementing aseries of risk management measures and temporary contingency plans, supply chain security was effectivelymaintained with disruption risks under control, making steady progress toward our target. Additionally, we haveintensified efforts to enhance supply chain transparency and sustainability, significantly advancing green supply chaininitiatives.Wehavemaderemarkableprogressintheconstructionofthegreensupplychain.Theproportionofgreenprocurementhasbeencontinuouslyincreasing,andthecirculareconomyhasbeenwidelyapplied.

Metrics and Targets2024 Target2024 Achievement

Supply Chain Risk AssessmentCoverage

100%

Achieved: 100% coverage of suppliers in qualified vendorlist, enabling comprehensive risk monitoringSupply Chain Risk AwarenessTraining Coverage

100%

Achieved: 100% of supply chain team memberscompleted training, elevating overall risk preventionawarenessSupply Chain Security

Zero disruption

risk

By implementing risk management and temporaryemergency measures, we ensured supply chain securityand effectively controlled the risk of supply chaindisruptionGreen Supply ChainDevelopment

Increase greenprocurement ratio

Significant progress achieved with rising greenprocurement rates and widespread circular economyapplications

While current procurement activities do not involve conflict minerals, FIRST remains committed to supply chainsustainability by continuously monitoring international standards and policy requirements. As business develops, thecompany will formulate responsible minerals management policies and take corresponding actions to contribute toindustry sustainability.

Innovation-driven Development Intellectual Property ProtectionProduct and Service Safety and QualityData Security and Customer Privacy ProtectionSupply Chain Security

FIRST 2024 ESG Report

FIRST strictly complies with laws and regulations including the Work Safety Law of the People's Republic of China,Occupational Disease Prevention and Control Law, and Production Safety Accident Emergency Response PlanManagement Measures, having established a comprehensive occupational health and safety management system.Organizationally, the company has set up Work Safety Management Committees at both business division andsubsidiary levels to oversee and supervise safety operations. All subsidiaries maintain occupational health and safetymanagement systems to ensure standardized and institutionalized safety practices.To effectively prevent and control occupational health risks, FIRST conducts annual risk identification assessments

and provides regular professional training to enhance employee safety awareness and emergency responsecapabilities. Additionally, the company organizes emergency drills targeting identified risks to ensure staff familiaritywith workplace hazards and countermeasures.Annual occupational health and safety work plans are developed with clear objectives and measures, forming a closed-loop management cycle from risk identification and training to drills and continuous improvement. These initiativesdemonstrate our commitment to ongoing occupational health and safety enhancement and employee wellbeing.

2024 Major Occupational Health Risks and Countermeasures

Occupational Hazard

Factors

CountermeasuresNoiseDustChemicalsubstances

Engineering controls:

Installed noise enclosures, baghouse dust collectors, and exhaust

hoods in hazardous areas to reduce environmental exposure levels

Personal protective equipment

: Provided earplugs, earmuffs, dust masks, and respirators to

-risk employees

Hazard monitoring

: Annual third-party testing confirms all occupational hazard factors comply

with regulatory standardsHealth surveillance: Annual medical examinations for exposed employees with ongoing healthmonitoring

Health surveillance: Annual medical examinations for exposed employees with ongoing healthmonitoring

To safeguard employee health and safety, FIRST maintains standardized work accident investigation procedures.Upon occurrence:

Immediate Medical Care: Prioritize transporting injured personnel to medical facilities for prompt treatment.Rapid Response: Immediately form investigation teams to determine causes and responsibilities.Continuous Improvement: Develop targeted corrective and preventive measures with tracking mechanisms to prevent

recurrence.

SystemSystemNameCoverage of Production SubsidiariesISO45001Occupational Health and Safety Management System100%

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights ProtectionEmployee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

Emergency Rescue

(According to the Emergency Plan)

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights ProtectionEmployee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

We attach great importance to the safety andhealth of employees and regularly conducts firstaid capability training. Through professionaltraining, employees can master first aid skills forhandling accidental injuries and suddenemergencies in daily life and work. This furtherenhances their safety awareness as well as self-rescue and mutual rescue abilities, ensuring thesafety of employees' lives to the greatest extent.

June 2024 marked the 23rd National "Work Safety Production Month". Closely adhering to the theme of theevent, "Everyone Talks about Safety, Everyone Can Respond to Emergencies—Keep the Life-savingPassages Unobstructed", our company organized, planned and carried out a series of themed activities. Theseactivities included safety commitment oath-taking, the "Everyone Talks about Safety—Pre-shift MeetingCompetition", the Comprehensive Safety Skills Contest, and the Emergency Evacuation and Escape Drill.These activities effectively enhanced employees' awareness of work safety production and their emergencyresponse capabilities.

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights ProtectionEmployee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

Employee Situation Data

Unit202420232022Total Number of EmployeesPersons467645493663By GenderNumber of Male EmployeesPersons353234312777Number of Female EmployeesPersons11441118886By Age

Number of Employees Under 30 Years OldPersons124112301048Number of Employees Aged 30 -50Persons310331022434Number of Employees Over 50 Years OldPersons332217181Amount Invested in Employees' Workers'Compensation Insurance

10,000 RMB328.11177.56155.98Amount Invested in Employees' Workplace

Safety Liability Insurance

10,000RMB3.483.373.3Coverage Rate of Employees' Workers'Compensation Insurance

%100100100Coverage Rate of Employees' WorkplaceSafety Liability Insurance (Chemical IndustryBase)

%95.7689.1185.86Number of Employee Training SessionsTimes1073808460Amount Spent on Employee Training10,000 RMB108.3482.6547.13Coverage Rate of Employee Training%100100100

FIRST 2024 ESG Report

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights ProtectionEmployee Development and TrainingSocial Responsibility

For a globalized, technology-led listed company, sustained and stable development is an everlasting goal—yet adiverse talent team remains the vital engine for its enduring prosperity. FIRST adheres to the values of equality,inclusion and diversity, respects and appreciates the individual differences and unique talents of employees, and iscommitted to providing a development environment for continuous growth for every employee.The premise of working together to create value is to respect the uniqueness and diversity of every employee. Aninclusive and equal workplace culture is an important manifestation of FIRST's inclusive culture. FIRST firmly opposesany form of discrimination and promises to eliminate discrimination against employees in recruitment, promotion, andcompensation based on factors such as race, skin color, age, gender, sexual orientation, ethnicity, disability,pregnancy, and religious belief. The Recruitment Management Method standardizes the procedures and standards fortalent recruitment, selection, and employment. Recruitment announcements are made through internal platforms, thecompany's official website, and external diverse recruitment platforms to attract talents and conduct fair and just talentselection. The company strictly prohibits forcing employees or job applicants to undergo any medical examinationswith discriminatory purposes.To effectively protect the basic rights and interests of each employee, we have formulated a series of managementpolicies, including the Policy on Prohibition of Compulsory Pregnancy Testing, Child Labor Remediation & PreventionProcedure, Forced & Compulsory Labor Elimination Policy, Female Employee Labor Protection Management Method,Freedom of Association & Right to Collective Bargaining Framework, Migrant & Foreign Worker Management System,Anti - discrimination Management Method, Prohibition of Prison Labor Regulations, Harassment-Free WorkplaceManagement Procedure, etc., to ensure that there is no use of child labor, forced labor, discrimination, harassment,etc. in recruitment, compensation, training, promotion, and dismissal.

FIRST clearly stipulates the principles of open recruitment and fair competition in the Human ResourcesControl Procedure, Recruitment Management Method, Intern Management Method, and InternalRecommendation Management Method, and strictly prohibits discriminatory behavior in the recruitment processin accordance with the law.Through recruitment channels such as the company's website, the company's recruitment WeChat officialaccount, third - party online recruitment websites, campus job fairs, large - scale on - site recruitment fairs, and

internal referral platforms, the company ensures that recruitment position information is open and transparent,

realizes the sharing of recruitment information and resources, and provides equal employment opportunities forjob seekers; the interview and employment process is fair, avoiding any form of direct or indirect discrimination.A global recruitment team has been established, with a reasonable gender ratio and age structure among teammembers, fully considering the personalities and career development demands of interviewees. Especially forthe introduction of overseas employees, it supports overseas talent recruitment and cross - regionalcommunication and exchange, ensuring that overseas employees are treated fairly and that language andcultural considerations are taken into account during the recruitment process. During the reporting period, wehad 205 ethnic minority employees, 1 Japanese employee, 207 Vietnamese employees, and 172 Thaiemployees.

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights Protection

Employee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

FIRST has formulated the Social Accountability ManagementManual. Centered around the SA8000 certification system standards,

26 new management system documents have been developed. A

total of 8,652 person - times of training have been carried out, with acumulative training duration of 17,204 hours. To ensure thatemployees of the company, its subsidiaries, and overseas bases can

fully understand, recognize, and implement the requirements of thesocial responsibility management system, we conduct systematictraining and practice to promote voluntary compliance with SA8000standards and relevant social responsibility laws and regulations.FIRST focuses on continuously improving the working environment and labor conditions, strengthening laborprotection, and effectively safeguarding employees' rights and interests. It integrates the concept of socialresponsibility into daily operations. Through a series of measures, it has effectively enhanced employees'awareness and practical ability regarding social responsibility, optimized internal management processes,further improved the working environment and employee welfare guarantees, and laid a solid foundation for thecompany's sustainable development.

FIRST has formulated and strictly implemented regulations such as the Management Regulations onForeign Workers and Migrant Workersand the Anti - discrimination Management Method. These regulationsensure that employees are not discriminated against during the employment process due to gender, ethnicity,age, marital status, physiology, surname, region, religious belief, etc., and safeguard employees' equalemployment rights. During the reporting period, 205 ethnic minority employees, 70 disabled employees, and

380 foreign employees were hired, and no discrimination incidents occurred.

FIRST has formulated the Policy on Prohibition of Compulsory Pregnancy Testing to effectively protect theemployment rights and interests of female employees; the Child Labor Remediation & Prevention Procedureto protect minors; the Forced & Compulsory Labor Elimination Policy to respect the right of labor autonomy;the Female Employee Labor Protection Management Method to clarify the prohibited labor for femaleemployees and protection measures during menstruation, pregnancy, childbirth, and lactation; the Freedomof Association & Right to Collective Bargaining Frameworkto respect the rights of different religions andfreedom of belief; and the Harassment - Free Workplace Management Procedure to clearly protect thepersonal safety of vulnerable groups.

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights Protection

Employee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

?All bases are equipped with dedicated lactation room, providing private and quiet spaces for female employees

during the lactation period.?Accessible parking spaces, ramps, restrooms, and elevators are provided to enable people with disabilities to move

around freely.?Employee activity rooms, basketball courts, gyms, yoga rooms, etc. are created to enrich employees' recreational

lives.?Activities such as the "Employee Lecture Hall", "Xinya Program", "Qingteng Program" - related training and thematic

reading clubs, and organization of new and old employee symposiums are carried out to help young employees

better integrate into the organization.

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights ProtectionEmployee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

FIRST values employees' well-being, promotes work-life balance, and fosters a happy, fulfilling workplace throughdiverse interest groups and cultural activities.?Interest Group Working MechanismWehave established the Trade Union Interest Activity Group Management

Framework under the auspices of the corporate trade union. This initiative, driven by employee interests, fostersmental well-being and contributes to organizational harmony.

?Interest Groups: Reading Interest Group, Basketball Interest Group, Swimming Interest Group, Badminton Interest

Group.

?Cultural Activities: We organize diverse seasonal and festival-based activities to enhance employee engagement,

including:Lantern Festival riddles,International Womens Day floral workshops,Childrens Day family events,Mid-Autumn Festival mooncake-making sessions.Additionally, an annual interdepartmental sports tournamentpromotes teamwork and strengthens cross-site camaraderie.

We have formulated management regulations such as Trade Union Member Welfare ManagementMethod, Trade Union Points Management Method, and Workers' Congress. We practice democraticmanagement and safeguard employees' legitimate rights and interests. The company has beenhonored with the National May 1st Labor Award issued by the All - China Federation of Trade Unions.In 2024, we held the Workers' Congress 4 times in total, with a cumulative expenditure of 4.4534 millionRMB for trade union funds.The trade union organization consists of 1 chairperson, 1 vice - chairperson, 11 committee members, 2staff, 1 accountant, and 1 cashier. The trade union chairperson has set up a trade union funds reviewcommittee and a trade union women workers' committee. For the smooth operation of trade union work,it is divided into 8 trade union groups, with 1 trade union liaison in each group, and each trade unioncommittee member is assigned to be responsible for one trade union group. Company employees jointhe trade union voluntarily. The trade union strictly fulfills its functions of safeguarding, construction,participation, and education, representing and safeguarding the legitimate rights and interests ofemployees.

The trade union cares about employees' work and life, harmonizes labor - management relations atwork, and promotes employees' participation in management innovation, labor competitions, and theselection and commendation of trade union activists. The trade union pays special attention to theprotection of female employees' rights and interests, establishing "Mami Huts" and purchasing specialdisease insurance for female employees.

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights ProtectionEmployee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

FIRST strictly complies with laws and regulations such as Labor Law of the People's Republic of China, Labor ContractLaw of the People's Republic of China, Employment Promotion Law of the People's Republic of China, and relevantlaws and regulations of overseas operation sites. It actively responds to international initiatives and standards such asUniversal Declaration of Human Rights, Conventions of the International Labor Organization, and UN GuidingPrinciples on Business and Human Rights, attaches importance to and respects the basic rights and interests of all

employees, and adopts a "zero - tolerance" attitude towards relevant infringement incidents. The company hasformulated management systems, procedure documents, and operation processes, including Employee Handbook,which provide detailed and clear descriptions of employees' occupational safety and development, working conditions,labor relations, etc. It has also formulated special labor protection systems covering all operation sites of the companyin terms of prohibition of forced labor and prison labor, prohibition of child labor, reasonable working hours and overtimecompensation, anti - harassment and abuse.

During the reporting period, FIRST did not have any cases of child labor misuse, forced labor, humiliation, harassment,or security - related violence. Over the past three years, FIRST has not had any layoff events that had a significant

impact on employees or major mergers or acquisitions that had a substantial impact on most employees.FIRST strictly follows the human rights and labor standards set by the United Nations Global Compact (UNGC), theInternational Labor Organization (ILO), and the Responsible Business Alliance (RBA), supports and respects therequirements of relevant local laws and regulations, and is committed to promoting the protection of human rights andlabor rights and interests in its own operations and value chain, caring for and safeguarding the legitimate rights andinterests of all stakeholders, including employees, workers in the supply chain, business partners, etc.

FIRST has formulated system documents such asChild Labor Remediation & Prevention Procedure,Child Labor Remediation Management Procedure,Voluntary Overtime Management System, andAdolescent Worker Protection Procedure at the grouplevel, and has formed corresponding managementsystems and procedures at the operation sites.Adhering to the human rights and labor protectionpolicy of "protect labor, respect human rights, operatewith integrity, and give back to society", it incorporatesrelevant human rights and labor standards in locallaws into internal processes and guidelines,establishes a human rights and labor rights andinterests management framework led by the generalmanager of each manufacturing base and coordinatedby human resources and various functionaldepartments, and implements normalized riskassessment and due diligence investigationmanagement measures to minimize the potentialimpact of human rights and labor risks.For interns, dispatched employees, and contractoremployees working for FIRST, FIRST implements thesame personnel management requirements as forformal employees to ensure the legitimate rights,interests, and physical and mental health of everyworker. During this reporting period, all manufacturingbases and operating locations of FIRST had no risk ofviolating the rights to freedom of association orcollective bargaining, nor were there any cases offorced labor or child labor employment.

Management

Procedure

Specific ContentDevelopMajor Hazard Source Identification & ControlSystem, Safety Inspection & Hidden Hazard

Rectification System, Safety Risk Assessment System

and workflows. Form occupational health & safety riskcontrol list, conduct key control for workplace safety.

Annually identify risks, update workplace risks and

control focuses. Quarterly safety inspections toenhance risk management and protect employees'rights.Track risk effectiveness quarterly, control high - riskprojects to prevent labor & human rights risks.

Set annual human rights management objectives perSA8000. Track monthly/quarterly.Incorporate into Social Accountability ManagementManual and KPI as evaluation basis.Internal audit reviews labor, environment, health &safety risks annually.Regularly carry out external third -

party audits, accept

customer audits, and ensure system operation.Develop Employee Appeal Handling & FeedbackProcedure, embed appeal channels in employeehandbook, establish comprehensive appeal plans.Develop

Important Employee Relationship Negotiation

Method.

For issues, HR & responsible units investigate, propose

measures. Organize emergency meetings if needed,

report major labor issues, formulate improvement plans.

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights ProtectionEmployee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

ThemeRelevant Policies and ObjectivesManagement and Mitigation MeasuresFreedom ofEmploymentChoice

Recruitment Management Method, Forced &Compulsory Labor Elimination Policy, EmployeeSeparation Management Method

Eliminate any form of forced/bonded labor. Work

based on voluntariness. Prohibit charging deposits.

Employees freely choose to renew contracts toprotect rights.

?Develop standard recruitment/separationprocedures.?Employees initiate separation per process

and leave with reasonable notice.

Prohibition of

Child Labor

?Child Labor Remediation & Prevention

Procedure A0 Version?Strictly prohibit child labor, verify ages during

recruitment.

?EHR system auto -identifies ID/age to

prevent illegal use.?Form recruitment ID -age checklist, double -check during employment.

Working Hours

?Voluntary Overtime Management System A0Version,Attendance Management Method?Comply with laws, ensure sufficient rest.

?Plan production/rest reasonably—EHR

warns for overtime.?EHR monitors key dept. overtime, reminds

management.?Evaluate labor intensity according to labor

quota standards, use automated procedures

to continuously optimize work intensity,

provide rest places for work -rest balance.Wages and

Benefits

?Leave Management Method,Salary PaymentManagement Regulations A0 Version

?Ensure salaries comply with laws (minimum

wage, overtime pay, statutory benefits).

?Formulate attendance/leave/salary methods

to guarantee legal leave/salary benefits.?Annually survey living costs to ensure

salaries exceedliving costs.

Humanitarian

Care

?Reward and Punishment ManagementMethod,Employee Handbook?Prohibit corporal punishment, coercion,verbal/psychological/gender - discriminatorymeasures or threats.

?Formulate reward - punishment rules, clarify

processes.?Strengthen training and publicity via multiple

channels to avoid inhumane behavior.

Anti -discrimination

and Anti -harassment

?Harassment -Free Workplace ManagementProcedure A0 Version?Ensure equal employment and prohibitdiscrimination in all processes—includingrecruitment, promotion, and compensation—

based on race, color, religion, sexual orientation,

gender, age, physical ability, political belief,union membership, marital status, or othergrounds.

?Standardize and strictly implement relevantsystems and processes.

?Provide unobstructed reporting and appealchannels, promptly detecting and stoppingcorresponding matters.

Freedom ofAssociation

?Freedom of Association & Right to CollectiveBargaining Framework, trade unions,workers'Congress?Guarantee employees rights toassociate/bargain collectively by law.Employees reflect issues via elections,communicate work benefits without retaliation.

?Establish organizations such as Workers'Congress and trade unions to ensureemployees wishes are reflected.?Standardize welfare committee system,

regularly elect employee representatives and

trade union committee members, conductworkers' congress for democratic decision -making, and organize various trade unionand welfare committee activities.

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights ProtectionEmployee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

FIRST builds diverse and unobstructed communication bridges, optimizes and adjusts according to employees'opinions and suggestions, creating a more equal, open, and harmonious working and communication environment,and encouraging employees to freely and fully express their opinions.To promptly understand employees' various needs and voices, including those on compensation, benefits, and

working environment, within the country, the group, subsidiaries, and each production base have respectivelyestablished trade union organizations and diverse communication channels—OA mailboxes, OA processes, opinion -

feedback QR codes, suggestion boxes, and public telephones. This ensures employees' opinions and suggestionsare promptly conveyed to management, providing a basis for improvement.Overseas, FIRST has not only establishedits own trade unions but also regularly holds communication mechanisms in line with overseas characteristics andcultures. Employees are encouraged to raise work - and life - related issues, and consultations and discussions arecarried out with an equal, democratic attitude to find fairer, more reasonable solutions.After receiving employees' feedback, the company follows the established internal handling process for feedback andfollow - up, promptly tracking relevant situations to ensure every piece of feedback gets a response and every matter

is addressed.

FIRST respects employees' right to free expression. Whether positive or negative, feedback is collected with an open,

inclusive attitude. It faces up to problems, actively seeks solutions and optimization approaches, and promotes closed- loop improvement of internal management.

Appeal materials should detailedly describe the content, and submitwritten materials and supporting documents.[The entire appeal - handling process must follow the avoidanceprinciple of the actor (i.e., the appeal object) of the appeal incident.]Relevant departments verify the materials and decide whether toaccept the appeal within three working days, then feedback the resultto the appellant.For accepted appeals, complete the investigation and confirmationwithin seven working days. Handle them per the companys rules,following fairness and justice, and form a handling report.The person in charge of the responsible department shall, within threeworking days, provide written feedback on the handling result to theappellant, ending the appeal process.

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights Protection

Employee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

FIRST strictly complies with relevant laws and regulations such as Labor Law of the People’s Republic of China,Labor Contract Law of the People’s Republic of China, Employment Promotion Law of the People’s Republic ofChina, and Protection Law for Minors of the People’s Republic of China, and has formulated internal systems such

as Employee Handbook, Human Resources Control Procedure, Compensation Management Method, and WelfareManagement System. All regulations and systems of FIRST involving all employees have been negotiated by thetrade union and adopted by the Workers' Congress.FIRST adheres to legal and compliant employment, and handles social insurance and housing provident fund foremployees in accordance with national and local laws and regulations of each subsidiary. It has strictly achieved 5

100%: LaborContractSigningRate:100%,SocialInsuranceCoverage:100%,HousingProvidentFundParticipation:

100%,StatutoryHolidayBenefitsCoverage:100% and Regulation Publicity Rate 100%. In addition, FIRST has

established a multi - dimensional incentive system, rest and leave guarantee system, and various supplementarywelfare systems, providing a solid guarantee for employees to work with peace of mind and the harmoniousdevelopment of the enterprise. In 2024, our compensation and benefits expenditure totaled 801.64 million RMB.

Compensation and benefits

202420232022

Employee compensation (ten thousand RMB)

80,164.1274,731.7359,242.70IncludingEmployee stock ownership plan incentive fund (ten thousand RMB)6,957.07

Photovoltaic Business Partnership Plan special fund (ten thousand RMB)4,995.645,492.96FIRST follows the compensation concept of “adhering to fairness and order, adapting to the market environment,reflecting the value of talents, and playing an incentive role” to promote the sustainable development of the companyand achieve a win - win situation for employees and the company; adheres to “taking the value of the position as thecore, guided by performance and contribution”, using the labor value of the position, ability contribution, andperformance results as the main basis for compensation distribution; adheres to the interconnection of “ability,contribution, performance, and wage level”, establishes a normal wage adjustment and promotion system, andencourages employees to become talents based on their positions; adheres to the principle of “orderly andsustainable development”, takes the growth of the company’s innovation ability as a premise, links employees’compensation levels and overall returns, shares responsibilities and returns, and realizes the common development ofemployees and the organization. FIRST continuously improves the performance appraisal system, compensation andbenefit system, training management system, and employee development and promotion channels, using acombination of pushing and pulling methods to guide and motivate employees to improve and develop, achieving the

goal of employees growing in work, reaping in growth, and developing harmoniously with the company.

Exceptforthechairmanandindependentdirectors,wedonotprovidedirectors'remuneration.DirectorswhoalsoholdseniormanagementpositionsorotherpositionsintheCompanywillbecompensatedaccordingtotheremunerationsystemoftheirrespectivepositions.Thesupervisorsarenotentitledtoanyremuneration,butiftheyholdotherpositionsintheCompany.Theywillreceiveremunerationaccordingtotheremunerationsystemofthosepositions.TheannualcompensationoftheCompany'sseniormanagementpersonnelcomprisestwocomponents:abasicmonthlysalaryandanannualperformance-basedbonus.Theperformance-basedbonusispaidinthefollowingyear,anditsamountisdeterminedbasedontheCompany'sperformanceandtheindividual'sworkcontributions,asevaluatedbytheRemunerationandEvaluationCommittee.TheremunerationofdirectorsandseniormanagersisreviewedbytheRemunerationandEvaluationCommittee,whichsubmitsitsrecommendationstotheBoardofDirectorsforapproval.TheBoardofSupervisorsreviewstheremunerationofsupervisors,whichissubmittedtotheBoardofShareholdersforapproval.

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights Protection

Employee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

FIRST has formulated the Welfare Management System for all domestic employees, standardizing the company'swelfare measures and establishment criteria to further enhance employees' sense of belonging and cohesion.Meanwhile, combining the consumer levels and policy settings of each overseas operation location, and with referenceto the Welfare Management System for domestic employees, the company provides local employees with statutorybenefits and special benefits. The Welfare Management System also includes welfare provisions for senior executives.Combining market benchmarking and job attributes, the company continuously optimizes the welfare benefits forsenior executives to ensure that the senior executive welfare system has comprehensive competitiveness.The company has a complete welfare system. In addition to statutory benefits, we also provide employees with health -safeguarding welfare, life - safeguarding welfare, incentive welfare, festival and cultural construction welfare, etc.

FIRST pays attention to the construction and management of leisure andentertainment places such as employee reading rooms, billiard rooms, tabletennis rooms, and open - air rest areas. It organizes and carries out activitiessuch as employee fun sports meetings and cultural and artistic evenings. In2024, a total of 21 various cultural and sports activities were organized, withmore than 2,200 employee participations, effectively relieving employees' lifeand work pressure.We provide free warm - hearted work meals and comfortable shuttle busservices. Responding to employees' voices, we introduce the "COSTA" coffeebar and adopts the mode of trade union points for gifts, giving employeesspecial preferential policies. We constructs the FIRST Employee Home - "FuRen Ju" with an area of 43,400 square meters, equipped with standard

badminton courts, basketball courts, gyms, reading rooms, and childcarefacilities for employees' children, which can provide a livable and comfortable

home for 1,300 employees.

FIRST cherishes every colleague and worker who has accompanied us throughtrials and tribulations and grown together. We hold an annual commendationconference, respectively awarding the Five - Year Award for Loving the Factoryand Devotion to Work, the Ten - Year Award for Loving the Factory and Devotionto Work, and the Fifteen - Year Award for Loving the Factory and Devotion toWork to senior employees who have continuously served for five, ten, fifteen,twenty years and above. It establishes evaluations such as advanced collectives,advanced teams, 5S excellent units, Group Stars, excellent employees, andemployee rookies, conducting evaluations and commendations for those withoutstanding performance and achievements in work.In 2024, we selected a total of 2 advanced collectives, 9 advanced teams, 1 5S excellent unit, 7 Group Stars, 90excellent employees, 10 employee rookies, 120 employees who won the Five - Year Award for Loving the Factoryand Devotion to Work, 53 employees who won the Ten - Year Award for Loving the Factory and Devotion to Work,

42 employees who won the Fifteen - Year Award for Loving the Factory and Devotion to Work, and 7 employeeswho won the Twenty - Year Award for Loving the Factory and Devotion to Work.

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights Protection

Employee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

BenefitCategory

Benefit ContentSpecific Measures

Statutory

Benefits

Social Insurance and HousingProvident FundPay five social insurances and one housing provident fund for employees

Pay five social insurances and one housing provident fund for employeesStatutory Holidays and Annual

Leave

Statutory Holidays and Annual

LeaveProvide statutory holidays and paid annual leave

Provide statutory holidays and paid annual leaveHigh

High

-temperature Protection

High

-temperature allowance, summer cooling -sending activities

Other Statutory BenefitsWedding and funeral leave, maternity leave, paternity leave, parental leave,etc.

Wedding and funeral leave, maternity leave, paternity leave, parental leave,etc.

Health -

safeguarding

Benefits

Health Check

-up

Provide free regular health check

-ups

Employer’s Liability Insurance

Purchase employer’s liability insurance for employees

Cooperative Hospital

Outpatient Service

Cooperative Hospital

Outpatient Service

Cooperate with local hospitals, doctors have regular consultations,providing medical treatment, consultation, and medicine

-dispensing

services

Medical Convenience Service

Assist employees in seeking medical treatment, provide green channels

Festival andCulturalConstructionBenefits

Festival Benefits

Festival allowances, birthday gifts, employment anniversary gifts, etc.

Team

-building Activities

Department team

-building activity funds, trade union activity funds

Employee CareHospitalization condolence money, funeral condolence money, retirementfarewell parties and souvenirs

Hospitalization condolence money, funeral condolence money, retirementfarewell parties and souvenirs

Trade Union Activities

Recuperation activities, summer cooling

-sending, etc.

IncentiveBenefits

Night Shift Allowance

Provide allowances for night shift work according to regulations

Night Snack Subsidy

Provide night snack subsidies

Excellent Employee Rewards

Recognition and bonus distribution for employee rookies, excellentemployees, excellent groups, and veteran employees’ factory

loving anddedication awards

Professional Title and TalentSubsidies

Professional Title and Talent Subsidies

Professional title identification, talent identification, apply for talent introduction subsidies and living subsidies

Life -

safeguarding

Benefits

Employee Dormitory

Provide high

-quality, environmentally friendly finely decorated multi -

room dormitories, equipped with laundry rooms, gyms, board game rooms,restaurants, supermarkets, basketball courts, badminton courts,underground garages, and charging piles

Free Work Meals

Provide self

-operated canteens in both work areas and living areas

Commuting Shuttle BusOperate multiple urban shuttle buses, formulate reimbursement standardsand management methods for home

Operate multiple urban shuttle buses, formulate reimbursement standardsand management methods for home

-visiting travel expenses

Living Supporting FacilitiesProvide living convenience facilities such as supermarkets, restaurants,and gyms

Provide living convenience facilities such as supermarkets, restaurants,and gyms

Educational

and

Developmental

Benefits

Academic Qualification and

Professional Qualification

ImprovementEstablish incentive mechanisms for vocational training, professional titles,professional qualifications, and academic education

Establish incentive mechanisms for vocational training, professional titles,professional qualifications, and academic education

Children’s Education Support

Children’s Education SupportSupport nearby enrollment, cooperate with the education bureau to holdrecruitment policy interpretation seminars and consultation meetings

Support nearby enrollment, cooperate with the education bureau to holdrecruitment policy interpretation seminars and consultation meetings

Training and Development

Provide vocational training, management skill

-improvement courses, etc.

Other Benefits

Retirement Care

Retirement CareAssist in handling retirement procedures, hold retirement farewell parties,and distribute retirement souvenirs

Expatriate Employee Benefits

Provide expatriate employees with home

-visiting leave and subsidies

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights ProtectionEmployee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

FIRST prioritizes talent cultivation and development, having established comprehensive employee promotionpathways and annually updated systematic training programs. By integrating digital empowerment tools, wecontinuously enhance employees' professional skills and comprehensive competencies, enabling each individual toachieve career success while contributing to FIRST's sustainable growth with strong human capital.

A fair and unimpeded promotion system is essential for long-term mutual development between talent and theenterprise. We implement an annual performance evaluation mechanism across all global manufacturing bases and

offices, featuring:Multi-dimensional assessment through organizational performance, departmental KPIs, individualperformance evaluations, duty fulfillment reviews, 360° feedback, and surveys. This comprehensive assessmentserves as a basis for employees' promotion, training, and salary adjustment.FIRST has formulated FIRST Professional Rank Evaluation Management Method, establishing three majordevelopment channels covering all employees: Management (M), Professional (P, B, O, T), and Operational (F). Thisframework clarifies development paths and promotion criteria for all positions, ensuring equitable advancementopportunities. Complementary long-term incentive plans further motivate employees and enhance talent retention.

ManagementPositionsM-Series

Professional Positions

OperationalPositionsF-SeriesP-SeriesB-SeriesO-SeriesT-Series

ManagementR&D/Testing,

ProcessTechnology,Mechanical/

Electrical

SalesProcurement

Admin/

HR,Finance/

Legal,Production/Q

uality

ITFrontline

Operations

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights ProtectionEmployee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

FIRST Corporate University adheres to the talent development principles of

"Humility, Diligence, Integrity, and Efficiency," dedicated to cultivatingcompetitive innovative talents and building a talent pipeline for the company.Through FIRST Corporate University, we have established a tiered, categorized,and all-employee-inclusive training system. This system empowers frontline staff,junior, middle, and senior management through specialized programs, onlinecourses, external training, one-on-one mentorship, and job rotations. In recentyears, we have launched:Frontline Team Leader Program [F-Series], "Xinya"Program [Graduates], "Qingmiao" Program [Key Employees], "Qingteng"Program [M-Series Management]. These initiatives create a robust talentechelon, providing strong human capital support for the company's rapid andhealthy development.

FIRST has developed a distinctive training system centered on corporate values, offering comprehensive and diversecourses for employees:

New Employees:“Xinya” Program for fresh graduates, focusing on onboarding integration and empowerment.Mandatory orientation training and general knowledge courses for all new hires.General Employees:Corporate University and Employee Lecture Hall provide regular professional developmentthrough open courses and book clubs.Role-specific vocational and skills training arranged based on job functions.

Key Employees:Customized professional training tailored to job skills and individual needsLeadership programs

(“Xinya”program → “Qingmiao”program → Qingteng”program) for junior supervisors, business core staff, middlemanagers, and senior executives.Resources for continuous self-development of experienced employees.

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights ProtectionEmployee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

Social Contribution Data

Unit

Data

Description

Charitable Donations

RMB 10,000

12.02

Volunteer Participation

Person

-times

148 Party members participated in "Learn from LeiFeng" activities in 2024.

148 Party members participated in "Learn from LeiFeng" activities in 2024.Volunteer Hours

Volunteer Hours

Hours

148

Rural areas are complex ecosystems integrating natural, social, and economic features, with multifaceted roles inproduction, living, ecology, and culture. Supporting China’s Rural Revitalization Strategy, FIRST leverages itsphotovoltaic expertise to establish sustainable poverty-alleviation mechanisms, including donations of distributed PVsystems and purchases of agricultural products from underdeveloped regions like Longyou County (Lishui) andBaiyu County (Sichuan). In 2024, we invested 92.8 thousand RMB in rural revitalization efforts.

FIRST fosters deep partnerships with universities to create off-campuspractice bases and innovate talent development models for the PVindustry. Through joint training, internships, and field visits, we enhancestudents’ practical experience while upskilling employees. As of thereporting period, we collaborated with:Zhejiang University, ZhejiangUniversity of Technology, Hangzhou Dianzi University, NingboUniversity, Zhejiang A&F University, Zhejiang University of Science and

Technology. In 2024, we provided 192 students with social practiceopportunities, significantly enhancing their understanding of thephotovoltaic industry and related roles.We also maintain long-term partnerships with universities andprofessional research institutions, leveraging joint training programs toupgrade employees’ professional knowledge and practical capabilities.In the reporting period, 48 management personnel participated inspecialized training coursesto continuously refine their knowledgesystems through structured learning.

FIRST embraces its mission and responsibilities by not only generating profits and fulfilling legal obligations toshareholders and employees, but also committing to consumers, communities, and the environment. We prioritizehuman values in production processes and emphasize contributions to environmental protection, consumer welfare,and social development. Adhering to national laws and regulations such as the Charity Law of the People's Republicof China and the Public Welfare Donations Law, we actively support charitable causes, assist disadvantaged groups,and donate through platforms like the Red Cross, Charity Federations, and Education Funds. During the reportingperiod, we contributed 120.2 thousand RMB to social welfare initiatives.

Occupational Health and Safety (OHS) Diversity, Equity, and Inclusion (DEI)Human Rights and Employee Rights ProtectionEmployee Development and TrainingSocial Responsibility

FIRST 2024 ESG Report

The company strictly complies with all corporate governance laws and regulations. In accordance with the latestupdates to relevant laws, regulations, and institutional requirements, we continuously revise, improve, and establishcorporate governance systems to clearly define responsibilities and authorities for decision-making, execution, andsupervision, thereby enhancing corporate compliance and better protecting shareholder rights. As of now, thecompany has established governance systems including: Articles of Association, Rules of Procedure for Shareholders'

Meetings, Rules of Procedure for Board Meetings, Rules of Procedure for Supervisory Board Meetings, IndependentDirector Working System, Working System for Special Meetings of Independent Directors, Related Party TransactionsManagement Policy, Fund Raising Management Policy, External Guarantees Management Policy, and Shareholdingand Trading Policy for Directors, Supervisors and Senior Management.

Daily decision-making body. Itsresponsibilities include implementingthe resolutions of shareholders'meeting, deciding on business planand internal organization, formulatingthe profit distribution and investmentand financing plans, appointing anddismissing senior managementpersonnel, and managing thecompany's information disclosure andother affairs.

Set up by the Board of Directors, responsiblefor formulating the remuneration scheme andassessment standards of the company'sdirectors and senior managers, andconducting the assessment and submitting itto the Board of Directors for decision.

Established by the Board, responsible forthe communication between internal andexternal audit, review of internal controlsystem, proposing the appointment ofexternal audit institutions, review offinancial information and disclosure, etc.

The highest authority of the company.Follows the regulations outlined in theCompany Law, Articles of Association,Rules of Procedure of theShareholders' meeting, and otherapplicable requirements. Theseprocedures guarantee that allshareholders, particularly minorityshareholders, have equal status andlegitimate rights and interests.

In charge of the company's operationunder the board of directors'leadership, responsible forimplementing the resolutions of theboard of directors and presiding overthe company's production, operation,and daily management.

The particular working body set up by theBoard and is mainly responsible for thecompany's medium and long-termdevelopment strategy, ESG work, majorinvestment, and financing issues to studyand put forward suggestions.

The operating mechanism established bythe Board of Directors to select andrecommend the selection criteria andprocedures for the appointment ofdirectors and executives of the company.

GeneralManager

Board of

Directors

Shareholders'meeting

Strategy

andSustainableDevelopme

ntCommittee

Remuneration andEvaluationCommittee

Board ofSupervisors

The supervisory body. Responsible forsupervising business development,related transactions, management anduse of raised funds, etc., to promotesustainable development of thecompany.

Strategy andSustainability

Committee

AuditCommittee

NominationCommittee

Corporate GovernanceStandardized OperationsRisk Management and Internal ControlsBusiness Ethics

FIRST 2024 ESG Report

Board diversity is designed to pool multifaceted expertise, drive corporate innovation and advance sustainableprogress.FIRST's directors come from diverse industry backgrounds spanning technology, finance, law, and

management, forming a multidimensional mix of gender, age, experience, and professional knowledge. Thisdiversified structure enhances decision-making comprehensiveness and accuracy, improves overall board

effectiveness, and fosters cross-disciplinary thinking, bringing fresh perspectives and strategic vision. We firmly

believe board diversity is a vital driver for sustainable development, maintaining competitive advantage in dynamicmarkets.The Board comprises 7 directors, including 3 independent directors (43% representation). Beyond the Board, FIRSThas: Supervisory Board: 3 members (2 shareholder representatives), including 1 female supervisor, SeniorManagement: 7 executives (3 female, 43% representation)NamePosition

Gender

Age

Nationality

ProfessionalBackground

Committee Roles

LinJianhua

ChairmanMale62China

Senior EngineerChemical Machinery

Strategy & Sustainability Committee

(Chair),Nomination CommitteeZhou

Guangda

DirectorMale43China

Professor-level

EngineerChemicalEngineering

Remuneration and Evaluation

CommitteeXuJianqin

Director

Femal

54ChinaSenior AccountantStrategy & Sustainability Committee

LinTianyi

DirectorMale36China

Business

Administration,Materials Science

Audit CommitteeLiuMeijuan

Independent

Director

Femal

54China

AccountingProfessor

Audit Committee (Chair),Remuneration and Evaluation

CommitteeLiBogeng

Independent

Director

Male66China

Polymer Chemical

Engineering

Nomination Committee (Chair),Strategy & Sustainability CommitteeYangZhijian

Independent

Director

Male55China

Political Science

Lawyer

Remuneration and Evaluation

Committee (Chair),

Audit Committee,Nomination Committee

Corporate GovernanceStandardized OperationsRisk Management and Internal ControlsBusiness Ethics

FIRST 2024 ESG Report

The Board has established the Remuneration and Evaluation Committee as a specialized body responsible forformulating, reviewing, and assessing the compensation policies and performance evaluations of directors and seniormanagement. In accordance with the company's specific circumstances, the Working Rules of the BoardRemuneration and Evaluation Committee have been enacted. The committee determines compensation packages fordirectors and senior executives based on company's long-term strategic objectives, benchmarking against industrypeers of similar scale and regional presence and provide appropriate allowances for independent directors. Besides,the compensation process strictly complies with relevant laws, regulations, and corporate governance requirements toensure rationality and compliance.

Board Meetings

Meetings held: 17Average attendance: 100%

Proposals reviewed/adopted: 75

Other Governance Meetings

Board committee meetings: 15Independent directors' special meetings: 1

Supervisory Board Meetings

Meetings held: 14Average attendance: 100%Proposals reviewed/adopted: 35

Shareholders' Meetings

Meetings held:6Proposals reviewed/adopted: 25

ThreeGovernanceBodies

Corporate GovernanceStandardized OperationsRisk Management and Internal ControlsBusiness Ethics

FIRST 2024 ESG Report

We attach great importance to communication and engagement with investors, consistently treating ESG topics as acritical component of investor relations management. To implement the relevant requirements of the Shanghai StockExchange Listed Company Self-Regulatory Guidelines No. 14 - Sustainability Reporting (Trial), we proactivelyconduct ESG-related investor engagement through multiple channels and formats.During the reporting period, we prepared and disclosed both Chinese and English versions of our ESG report,comprehensively demonstrating the company's practices and achievements in ESG. Meanwhile, we promptlyreleased ESG-related updates through our official website, WeChat official account, and the SSE platform to ensureinformation transparency and accessibility. Furthermore, we engaged in in-depth discussions with investors on ESGtopics through shareholders' meetings, earnings presentations, roadshows, and analyst conferences, promptlyaddressing investor concerns and listening to market feedback.Going forward, we will continue to reference global sustainability disclosure initiatives and best practices to identifyESG-related risks and opportunities, refine management policies and action plans, and provide investors with morecomprehensive and accurate information. We are committed to continuously improving ESG governance anddisclosure quality, dedicated to creating long-term value for investors.

We place paramount importance on information disclosure. In strict compliance with laws, regulations and regulatoryrequirements including the Company Law of the People's Republic of China, the Securities Law of the People'sRepublic of China, the Corporate Governance Code for Listed Companies, the Guidelines for Investor RelationsManagement of Listed Companies, and the Shanghai Stock Exchange Listed Company Self-Regulatory Guidelines

No. 1 - Standardized Operations, we have established our Information Disclosure Management Policy to ensure theauthenticity, accuracy and timeliness of disclosures, thereby safeguarding the legitimate rights and interests of allshareholders.

Periodic Reports

The company releases periodic reports on schedule, disclosing comprehensive financialdata, business development, market conditions, and risk factors for each reporting period,providing investors with complete and timely information.InterimAnnouncements

For material events such as routine related-party transactions, investment decisions, andchanges in shareholder equity, the company promptly issues interim announcements toensure investors receive timely updates. In 2024, the company released 112 interimannouncements.

Investor Relations

The company actively engages with investors through regular earnings presentations andinvestor conferences to address market concerns. Multiple disclosure channels –including the official website, investor relations platforms, and WeChat official account –ensure broad coverage. A dedicated investor email and hotline facilitate feedback,enhancing transparency. In 2024, the company held 7 earningspresentations/conferences and conducted over 100 institutional investor meetings(online/offline).Disclosure Quality

The company enforces strict internal reviews to ensure all disclosures are truthful,accurate, complete, and non-misleading, maintaining full compliance with regulations.SocialResponsibility

The company proactively discloses ESG information, having published annual CSRReports or ESG Reports for four consecutive years, demonstrating its sustainabilitycommitment.

Corporate GovernanceStandardized OperationsRisk Management and Internal Controls

Business Ethics

FIRST 2024 ESG Report

During the reporting period, the company formulated and revised several regulatory documents including the Articlesof Association, the Shareholding and Trading Policy for Directors, Supervisors and Senior Management, and theShareholder Dividend Return Plan for the Next Three Years (2024-2026). These updates maintained strongcontinuity and stability, aligning with the company's long-term development strategy while demonstrating ourcommitment to shareholder value, thereby fostering and enhancing positive relationships with shareholders.

Year

Increasebytransferring

per10shares(shares)

Dividendpayoutper10shares(RMB)

Cashdividend(taxincluded) (RMB)202241.5199,731,787.05202342.6483,970,875.442024/2.6677,559,390.56

Cumulative cash dividends in the past three years1,361,262,053.05

Note: The 2024 profit distribution proposal is subject to approval at the 2024 Annual General Meeting of Shareholders before implementation.

Our current core business operations, commercial activities, and technological development do not involve cutting-edge fields with significant technology ethics sensitivities such as life sciences or artificial intelligence. Consequently,we do not directly face material risks or challenges related to technology ethics. As stipulated in the SSE Guidelines

No. 14, technology ethics issues primarily apply to enterprises whose technology development, application, or datausage may substantially impact privacy protection, algorithmic fairness, AI ethics, and related areas. Whiletechnology ethics does not currently constitute a core component of FIRST's ESG management given our businessscope, we maintain a steadfast commitment to ensuring the compliance and ethical integrity of all technologicalapplications.We strictly comply with China's Personal Information Protection Law, implementing comprehensive controls overemployee personal data (including biometrics like facial recognition). Through encryption, access controls, and dataanonymization, we protect sensitive information while conducting regular compliance audits and training. All data

processing follows principles of legality, legitimacy, and necessity. For any future technology ethics-related business,we will establish governance frameworks with embedded ethical review mechanisms to fulfill CSR obligations.

We consistently comply with the Small and Medium-sized Enterprises Promotion Law of the People's Republic of

China and the Regulations on Guaranteeing Payments to Small and Medium-sized Enterprises, upholding principlesof equality and fairness in engagements with SME suppliers and partners. During the reporting period, FIRST strictlyfollowed the National Enterprise Credit Information Publicity System requirements to disclose payment records withSMEs in a timely manner. As of the reporting date, the company recorded zero incidents of overdue payments to

SMEs.

Within our supply chain management, we implement reasonable payment terms to fully protect SME suppliers'legitimate rights while continuously optimizing internal payment processes to enhance supply chain transparency.These efforts underpin our commitment to fostering long-term, stable partnerships. Movingforward,wewillupholdfairpractices,compliance,andcorporatesocialresponsibility

Corporate GovernanceStandardized OperationsRisk Management and Internal ControlsBusiness Ethics

FIRST 2024 ESG Report

The risk management philosophy serves as the cornerstone of our risk management framework, reflecting thecompany's strategic emphasis on ESG risk management. We adhere to a prudent, forward-looking, andcomprehensive risk management approach, integrating risk management into daily operations and strategic planning.This underscores its critical role in achieving sustainable development, safeguarding shareholder interests, andenhancing brand reputation and social responsibility.

Board and its Sub-Committees(Highest decision-making body for risk management)

Senior Management(Oversees and implements risk management initiatives)

Risk Management Functional Dept.(Risk identification, assessment, and mitigation)Legal

Affairs

InternalAudit

InternalControl

SecurityBusiness and SupportDept.

Support Dept.

Finance, HR, IT

Employees

Employees report potential risks toensure timely escalation andcontinuous improvementAll staff receive risk managementtraining to understand their roles inrisk mitigation

Business Dept. Leaders( Integrate riskmanagement intooperations to alignbusiness and riskobjectives)

Business Dept.Risk Officers

Conduct riskassessments,monitoring, andreporting withindepartments

Corporate GovernanceStandardized OperationsRisk Management and Internal Controls

Business Ethics

FIRST 2024 ESG Report

Leveraging our established trainingmanagement system, we regularly organizeworkshops conducted by internal trainers orexternal experts to educate employees onrisk-related topics including workplace safety,environmental protection, business ethics,and anti-fraud measures. Through casestudies, we strengthen risk awareness andpreemptively mitigate potential risks.To improve risk management efficiency and effectiveness, we prioritize the development and optimization of internalcommunication mechanisms. Regular cross-departmental risk management coordination meetings ensure timelyinformation exchange and sharing of best practices among management and key personnel. Internalcommunication platforms and knowledge management systems facilitate seamless dissemination of risk alerts,response strategies, and implementation measures. Additionally, we encourage employees to proactively reportpotential risks or hazards through established feedback channels and incentive programs, fostering an open,transparent, and collaborative risk management culture. This collective approach enables us to address challengespromptly and sustain healthy development.

To effectively mitigate major risks and strengthen the company's comprehensive risk management, in accordancewith relevant regulations such as the Basic Standards for Enterprise Internal Control and the Application Guidancefor Enterprise Internal Control, the company has updated and refined its Internal Control Management System.Thisstreamlined and effective internal control system integrates risk management processes across all operational andmanagerial activities. Supervised and evaluated by the Board of Directors, Supervisory Board, senior management,and internal audit department, the system covers five key components: internal environment, risk assessment,control activities, information and communication, and internal monitoring. Throughout 2024, the company and itssubsidiaries adhered strictly to legal requirements, with no material violations or significant penalties incurred.We engaged Pan-China Certified Public Accountants LLP as our internalcontrol auditor for 2024 to evaluate the effectiveness of controls acrossheadquarters and subsidiaries. The audit identified no materialweaknesses in design or implementation, and issued an unqualifiedInternal Control Audit Report. The company annually discloses its InternalControl Self-Assessment Report.

Corporate GovernanceStandardized OperationsRisk Management and Internal ControlsBusiness Ethics

FIRST 2024 ESG Report

We will conduct comprehensive risk assessments across all operational modules every 2-3 years, utilizing periodicreporting, internal audits, special investigations, and internal control evaluations to continuously enhance thecorporate risk database.Identified risks are rigorously classified based on impact severity and likelihood, with priority given to critical andsignificant risks to ensure prompt resolution.Besides, a dedicated risk monitoring mechanism has been established, featuring targeted follow-up inspections toobjectively evaluate remediation effectiveness and sustain risk management efficacy.

We implemented an extensive and responsive preemptive risk alert system, deepening grassroots-level riskidentification and control. This ensures swift, precise responses from early warning detection to countermeasureformulation.To achieve thorough risk oversight, we appointed frontline risk officers—including safety, documentation, andinternal control specialists—across headquarters, departments, subsidiaries, and manufacturing sites. These rolesform a bottom-up risk prevention network, conducting daily monitoring while actively participating in riskidentification, assessment, and initial mitigation.

We prioritize identifying and addressing sustainability-related adverse impacts, embedding due diligence as acornerstone of business decisions and risk management. During the reporting period, cross-departmentalcollaboration clarified responsibilities to ensure systematic execution. Due diligence covers the company,subsidiaries, and direct/indirect business partners, spanning:Labor relations, Human rights, Environmental

compliance, Anti-corruption, Climate change, Technology ethics, Business integrity, Supply chain management.

Particular attention is given to human rights and environmental risks, with due diligence integrated into governance,strategic planning, and risk frameworks. Stakeholder engagement ensures timely response to concerns, whiletargeted measures prevent, mitigate, and address actual/potential impacts. Continuous tracking and evaluationtranslate findings into actionable management strategies, safeguarding long-term resilience.

Corporate GovernanceStandardized OperationsRisk Management and Internal ControlsBusiness Ethics

FIRST 2024 ESG Report

FIRST strictly adheres toCriminal Law of the People's Republic of China,Company Law of the People's Republic ofChina,Anti-Unfair Competition Law of the People's Republic of China,Interim Provisions on Prohibiting CommercialBribery (State Administration for Market Regulation)andotherlawsandregulations.

FIRST is committed to fostering a fair, just, and transparent business environment, firmly prohibiting commercialbribery and corruption. Through robust management systems and oversight mechanisms, we ensure lawful andcompliant operations while safeguarding the legitimate rights of the company, employees, and stakeholders.Upholding integrity, probity, and accountability, we embed anti-bribery and anti-corruption principles into dailyoperations, cultivating a culture of honesty and self-discipline.

The Board's Strategy and Sustainability Committee overseesbusiness ethics and anti-corruption strategies. The BusinessEthics Leadership Group (chaired by the Chairman) operatesunder the Internal Audit Department, which reports quarterlyto the Board.FIRST currently has 10 full-time professionals responsible forbusiness ethics, compliance, internal audits, and anti-fraudinvestigations. All team members hold bachelor's degrees orhigher, with diverse professional backgrounds coveringfinance, auditing, engineering, law, investment, mechanicalautomation and other fields. Team members possessprofessional qualifications including Intermediate Accountant,Intermediate Auditor, Certified Public Accountant (CPA),National Legal Professional Qualification, Class IIConstruction Engineer, and Certified Internal Auditor (CIA).

(1)Under the guidance of the Board, implement the

business ethics management strategies andobjectives to ensure operations comply with ethicaland regulatory requirements.

(2)Establish and improve the internal business ethics

supervision system, undertake compliance monitoringand review responsibilities to guarantee the legalityand ethicality of company operations.

(3)Handle the acceptance and investigation of internal

and external complaints and reports, conduct analysisto determine the nature of issues, and provideresolution recommendations.

(4)Carriy out internal audits, risk management,

internal control evaluations and anti-fraudinvestigations. Based on review findings, developimprovement measures and continuously trackrectification progress to ensure effectiveimplementation of all actions.

We have established the Supplier Integrity Management Proceduresand Employee Code of Ethical Conduct, which clearly articulate our

unwavering stance and fundamental principles on business ethics. We

firmly believe that upholding business ethics serves as the cornerstonefor sustainable corporate development. Therefore, we explicitly requireall stakeholders to thoroughly understand and strictly adhere to ourbusiness ethics policies, collectively maintaining a fair, just, andtransparent business environment.Furthermore, we have formulated the Management Probity Guidelines,Internal Audit Management System, and Whistleblowing ManagementPolicy, and entered into Counterparty Integrity Commitment Letters withall suppliers. These documents collectively form the critical frameworkfor advancing our business ethics management, ensuring that ethicalprinciples are rigorously implemented at every stage of commercialactivities to safeguard the company's reputation and long-term interests.

The Supplier Integrity ManagementProcedures expressly prohibit suppliers fromproviding any form of improper benefits tocompany employees. Suppliers are obligatedto fully comprehend and accept our businessethics policies and must provide activecooperation during investigations or auditsconducted by our company.The Employee Code of Ethical Conduct clearly

defines red lines: under no circumstances mayemployees accept any form of economicbenefit from business partners or parties withpotential conflicts of interest.

Corporate GovernanceStandardized OperationsRisk Management and Internal ControlsBusiness Ethics

FIRST 2024 ESG Report

The Internal Audit Department conducts comprehensive and in-depth reviews annually of key business areasincluding procurement, sales, engineering, and financial management, as well as high-risk areas prone to misconduct,

achieving 100% coverage of critical risk domains. Additionally, a full-scope review of all business areas is completedbiennially. Aligned with the Board's risk management strategy, the department dynamically adjusts annual anti-fraudand compliance plans to ensure operations remain compliant and sustainable.During the reporting period, the Internal Audit Department planned and completed 21 internal audit tasks and 4specialized fraud investigations (25 tasks total), achieving a 100% completion rate. The audits identified 130management deficiencies, prompting targeted improvements to optimize processes and operational efficiency.FIRSTcarriedout17 planned audit rectification trackings, monitored 162 corrective actions (90% completion rate),strengthening internal controls and risk management. The company addressed multiple commercial bribery andcorruption cases involving 566 thousand RMB.Thecompanyattaches great importance tobusiness ethics training.Commercial ethics training achieved 100%

coverage among directors, management, and key personnel, significantly enhancing compliance awareness.

We have adopted a three-pronged training model. Through new employee orientation, regular internal training, andexternal expert lectures, we comprehensively enhance employees' awareness of business ethics and compliance.

In August 2024, the Internal Audit Department successfully launched the"Integrity Construction Month Campaign," a key component of both theannual training plan and the monthly learning plan for Party members. Jointly

organized by the Internal Audit Department, HR Department, and FIRSTParty Committee, the campaign culminated in late August with a corporatelecture series titled "Lecture on Prevention and Response to CorporateEconomic Crimes & Integrity Month Summary Meeting", delivered through ahybrid online-offline format. Leveraging a tiered training transfer mechanismacross departments, the initiative ensured full coverage of all divisions,

subsidiaries, and domestic/overseas manufacturing bases, achieving broadand in-depth participation across the entire workforce.Over 4,000 employees actively engaged in the campaign, representing a

93.3% company-wide participation rate. Through systematic training and

advocacy, employees’ awareness of business ethics and compliance was

significantly enhanced, further strengthening the foundation of the

company’s integrity culture.

Corporate GovernanceStandardized OperationsRisk Management and Internal ControlsBusiness Ethics

FIRST 2024 ESG Report

FIRST has always attached great importance to the opinions and feedback of its partners and employees. In July2024, we meticulously designed and distributed A Letter to Employees/Suppliers via text message to all partners andstaff, accompanied by a survey questionnaire. We sincerely aim to gather diverse insights and suggestions throughthis initiative to continuously improve our operations. Meanwhile, we solemnly commit to strictly protecting the privacyand rights of all respondents by keeping their information confidential, ensuring they can share their genuine thoughtswithout hesitation.

In July 2024, FIRSTs annual Supplier Conference was successfully convened at

its Hangzhou headquarters under the theme "Upholding Standards, Winning

Through Quality, Navigating Cycles, Embracing the Future". Throughout the longjourney of corporate collaboration, "integrity and probity" have remained the coreprinciples, serving as the solid foundation for building long-term, stablepartnerships between FIRST and its suppliers. At this conference, FIRSTreinforced its integrity-themed advocacy by deeply interpreting anti-corruptionpolicies and sharing practical cases, emphasizing the critical role of ethicalcooperation in maintaining a fair competitive market environment and drivingsustainable corporate development. During the event, all staff from the SupplyChain Center solemnly took an integrity oath. Every word of the oath resoundedwith resolve, reflecting FIRST employees firm commitment to upholding moraland legal boundaries, adhering to honesty, and practicing strict self-discipline. It

also demonstrated FIRSTs determination to uphold transparency inprocurement and resolutely reject corruption.

EmployeeQuestionnaireQuantity

QuantitySupplierQuestionnaire

SupplierQuestionnaireQuantity

QuantityDistributed

Distributed

4,341

Distributed

326

Responded

4,310

Responded

208

Response Rate

99.3%

Response Rate

63.8%

Among the collected responses, 81 valid issues were raised,covering key business areas including Supply ChainManagement, Production Management, Internal Audit,Financial Management, Information Technology, EngineeringConstruction, Equipment Maintenance, and Human Resources.For each feedback received, we conducted detailedinvestigations—including follow-up calls and face-to-faceinterviews—to deeply understand the context and facts of theissues. Based on these, we developed practical improvementmeasures to ensure all concerns are properly addressed andresolved.

Corporate GovernanceStandardized OperationsRisk Management and Internal ControlsBusiness Ethics

FIRST 2024 ESG Report

To strengthen internal monitoring of business ethics and compliance, we have establishedaccessible and diversified reporting channels for employees, suppliers, clients, and otherstakeholders. Reportable matters include violations of the company's legitimate rights regardingproperty or reputation, acts that harm employee rights or breach national laws/regulations andnon-compliance with company policies.Reporting Emailfirstjubao@firstpvm.comReporting Hotline0571-61076599Reporting MailInternal Audit Department, No.8 FusiteStreet, Lin'an District, Hangzhou, ZhejiangWeChat Official Account:SH603806WeChat Mini Program: FIRST Complaint System

TheWhistleblowingManagementPolicyexplicitlyensureswhistleblowersafetythrough:

?StrictConfidentiality:AllpersonaldataandevidenceareclassifiedperConfidentialityPolicystandards,with

zerotoleranceforleaks.?SecureInvestigations:Prohibitsforwardingcomplaintmaterialsdirectlytoimplicatedpartiestopreventretaliation.?RetaliationPenalties:Legal/disciplinaryactionsagainstretaliationperpetrators.

Toencourageallstakeholderstoactivelyreportviolationsofbusinessethicswhilefullyprotectingwhistleblowerprivacy,FIRSThasestablishedareasonablerewardmechanism.Forverifiedreports,wewillcomprehensivelyconsiderfactorsincludingthenatureoftheincident,scopeofimpact,andthewhistleblower'slevelofcooperationtodetermineappropriaterewards.Therewardsystemoffersdiverseformsofincentives,includingbutnotlimitedtomonetaryrewards.Forreportsrelatedtoprocurementactivities,additionalincentivessuchasincreasedprocurementquotasmaybegranted.Thisprogramisdesignedtoencourageethicalbehaviorandmaintainafairandtransparentbusinessenvironment.

Corporate GovernanceStandardized OperationsRisk Management and Internal ControlsBusiness Ethics

FIRST 2024 ESG Report

Under the internal self-inspection and correction mechanism, upon identifying operational management risks orvulnerabilities through whistleblowing investigations, the relevant cases are immediately transferred to thecorresponding business units or divisions to accurately assign accountability. Simultaneously, a continuous follow-upmechanism is activated to ensure departments implement corrective actions, conduct thorough self-inspections,identify potential risks, and address root causes by optimizing processes and improving systems. This approachcontinuously refines management mechanisms, enhances overall operational standards, and establishes a closed-loop management model of "issue identification - case escalation - problem rectification - management improvement"to ensure the company's stable and sustainable operations.

Weconsistentlyupholdtheprinciplesoffaircompetition,integratinganti-unfaircompetitionpracticesasacorecomponentofourgovernanceframework.WestrictlyadheretolawsandregulationssuchastheAnti-MonopolyLawofthePeople'sRepublicofChinaandtheAnti-UnfairCompetitionLawofthePeople'sRepublicofChina,continuouslyimprovingourcompliancemanagementsystemsandstrengtheningenforcementeffectiveness.We

explicitlyprohibitmonopolisticagreements,abuseofmarketdominance,discriminatorypractices,andtradesecretinfringements,whileestablishingend-to-endriskcontrolthroughtechnologicalempowermentandprocessoptimization.Toenhanceexternaloversight,wehaveimplementedamulti-channelfeedbackmechanism,includingdedicatedwhistleblowingpositions,regularstakeholderengagement,andthird-partyindependentaudits,systematicallycollectingriskindicatorsandpromptlyaddressinggovernanceneeds.

Duringthereportingperiod,FIRSTdidnotencounteranymajorlitigationoradministrativepenaltiesrelatedtounfaircompetition.Movingforward,FIRSTwillfurtherdeepenitscomplianceculturethroughmulti-dimensionalinitiatives

suchastrainingprograms,internalaudits,andcomplianceassessments,reinforcingthefairnessandsustainabilityofthebusinessecosystemandsettingabenchmarkformaintaininghealthymarketorder.

Corporate GovernanceStandardized OperationsRisk Management and Internal ControlsBusiness Ethics

FIRST 2024 ESG Report

Index of Shanghai Stock Exchange Listed Company Self-Regulatory Guidelines No. 14 –Sustainability

Reporting (Trial)

Chapter/Topic

SSE GuidanceCorresponding Topic

SSE GuidanceCorresponding Clause

Chapter 1

Laying a Solid Foundation for Sustainable Development

1.1

Response to UN Sustainable DevelopmentGoals

1.2

ESG Governance

/Article 11

1.3

Stakeholder Engagement

Stakeholder CommunicationArticle 9, Article 53

1.4

Materiality Assessment for ESG Issues

/Article 5

1.5

Sustainability Risks and OpportunitiesManagement

/Article 11, Article 12

1.6

Sustainability Metrics and Targets

/Article 11

Chapter 2 Green Development for a Sustainable Future

2.1

Response to Climate Change

Response to Climate ChangeArticles 21-28

2.2

Environmental Compliance ManagementEnvironmental Compliance Management,

Environmental Compliance Management,

Ecosystem and Biodiversity Protection

Article 33, Article 32

2.3

Energy Management

Energy UtilizationArticle 35

2.4

Water Resource Utilization

Water Resource UtilizationArticle 36

2.5

Emissions & Waste Management

Pollutant Emissions, Waste Management,

Circular Economy

Article 30, Article 31,Article 37

2.6

Chemical Safety

Chapter 3 Innovation and Collaboration for a Responsible Value Chain

3.1

Innovation

-driven DevelopmentInnovation-Driven DevelopmentArticle 42

3.2

Intellectual Property Protection

Innovation-Driven DevelopmentArticle 42

3.3

Product and Service Safety and Quality

Product & Service Safety & QualityArticle 47

3.4

Data Security and Customer PrivacyProtection

Data Security and Customer Privacy

Protection

Article 48

3.5

Supply Chain Security

Supply Chain SecurityArticle 45

Chapter 4 Caring for Employees and Building a Harmonious Ecosystem

4.1

Occupational Health and Safety (OHS)

EmployeesArticle 50

4.2

Diversity, Equity, and Inclusion (DEI)

EmployeesArticle 50

4.3

Human Rights and Employee Rights

Protection

EmployeesArticle 50

4.4

Employee Development and Training

EmployeesArticle 50

4.5

Social Responsibility

Rural Revitalization, Social ContributionArticle 39, Article 40

Chapter 5 Integrity and Compliance to Strengthen Corporate Governance

5.1

Corporate Governance

5.2

Standardized Operations

Tech Ethics, Fair Treatment of SMEsArticle 43, Article 46

5.3

Risk Management and Internal Controls

Due DiligenceArticle 52

5.4

Business Ethics

Anti-Bribery & Anti-Corruption, Fair

Competition

Article 55, Article 56

FIRST 2024 ESG Report

GRISTANDARD

DISCLOSURELOCATIONRELATED CHARPTER

GRI 2:

GeneralDisclosures2021

-1 Organizational details

P2P4-8

Report Instructions, About FIRST

-2 Entities included in

theorganization's sustainabilityreporting

Report Instructions

-3 Reporting period,frequency and

contact poin

Report Instructions

-6 Activities,value chain and other

business relationships

P4-8P56-59P61-65

About FIRST, Product and Service Safetyand Quality, Supply Chain Security

-7 EmployeesP70-74

Diversity, Equity, and Inclusion (DEI)

8 Workers who are not employees

P70-74

Diversity, Equity, and Inclusion (DEI)

-9 Governance structure and

composition

P14-16P85-87

ESG Governance, Corporate Governance

10 Nomination and selection of thehighest governance body

P85-87

Corporate Governance

11 Chair of the highest govemancebody

P85-87

Corporate Governance

12 Role of the highest govemancebody in overseeing themanagement of impacts

P14-16P85-87

ESG Governance, Corporate Governance

-13 Delegation of responsibility for

managing impacts

P14-16P85-87

ESG Governance, Corporate Governance

14 Role of the highest governancebody in sustainability reporting

P14-16P85-87

ESG Governance, Corporate Governance

-15 Conflicts of interest

P17P85-87

Stakeholder Engagement, CorporateGovernance

-16 Communication of critical

concerns

P17P85-89

Stakeholder Engagement, CorporateGovernance, Standardized Operations

-17 Collective knowledge of the

highest governance body

P14-16

ESG Governance

-19 Remuneration policies

P75-80

Human Rights and Employee RightsProtection

-20 Process to determine

remuneration

P75-80

Human Rights and Employee RightsProtection

-22 Statement on sustainable

development strategy

P14-16P22

ESG Governance, Sustainability Metrics andTargets

-23 Policy commitments

P17P75-80P90-92

Stakeholder Engagement, Human Rights andEmployee Rights Protection, RiskManagement and Internal Controls

24 Embedding policy commitments

P14-16P88-97

ESG Governance, Standardized Operations,Business Ethics

-25 Processes to remediate

negative impacts

P17P90-92

Stakeholder Engagement, Risk Managementand Internal Controls

26 Mechanisms for seeking adviceand raising concerns

P17P90-92

Stakeholder Engagement, Risk Managementand Internal Controls

-27 Compliance with laws and

regulations

P88-89

Standardized Operations

-29 Approach to stakeholder

engagement

P17

Stakeholder Engagement

FIRST 2024 ESG Report

GRISTANDARD

DISCLOSURELOCATIONRELATED CHARPTER

GRI 3: MaterialTopics 2021

-1 Process to determine material

topics

P17P18-20

Stakeholder Engagement, MaterialityAssessment for ESG Issues

-2 List of material topics

P18-20

Materiality Assessment for ESG Issues

-3 Management of material topics

P18-20

Materiality Assessment for ESG Issues

GRI 201:

EconomicPerformance2016

GRI 201:

EconomicPerformance2016

-1 Direct economic value

generated and distributed

P9P75-80

2024 Key Performance and Awards, HumanRights and Employee Rights Protection

-2 Financial implications and

other risks and opportunities due toclimate change

P24-30

Response to Climate Change

GRI 203:

IndirectEconomicImpacts 2016

GRI 203:

IndirectEconomicImpacts 2016

1 Infrastructure investments andservices supported

P83

Social Responsibility

GRI 205:

Anticorruption2016

GRI 205:

Anticorruption2016

1 Operations assessed for risksrelated to corruption

P93-97

Business Ethics

-2 Communication and training

about anti

-corruption policies and

procedures

P93-97

Business Ethics

-3 Confirmed incidents of

corruption and actions taken

P93-97

GRI 207: Tax2019		Business Ethics
GRI 207: Tax2019

3 Stakeholder engagement andmanagement of concerns relatedto tax

P17

Stakeholder Engagement

GRI 302:

Energy

2016

GRI 302:

Energy

2016

-1 Energy consumption within

the organization

P34-37

Energy Management

-3 Energy intensity

P34-37

Energy Management

-4 Reduction of energy

consumption

P34-37

Energy Management

GRI 303: Waterand Effluents2018

-3 Water withdrawal

P38-39

Water Resource Utilization

-4 Water discharge

P38-39

Water Resource Utilization

GRI 305:

Emissions2016

GRI 305:

Emissions2016

-1 Direct (Scope 1) GHG

emissions

P24-30

Response to Climate Change

-2 Energy indirect (Scope 2)

GHG emissions

P24-30

Response to Climate Change

-4 GHG emissions intensity

P24-30

Response to Climate ChangeGRI 306: Waste2020

GRI 306: Waste2020

-1 Waste generation and

significant waste

-related impacts

P40-44

Emissions & Waste Management

-2 Management of significant

waste

-related impacts

P40-44

Emissions & Waste Management

-3 Waste generated

P40-44

Emissions & Waste Management

GRI 308:

SupplierEnvironmentalAssessment2016

-1 New suppliers that were

screened using environmentalcriteria

P61-65

Supply Chain Security

-2 Negative environmental

impacts in the supply chain andactions taken

P61-65

Supply Chain Security

FIRST 2024 ESG Report

GRISTANDARD

DISCLOSURELOCATIONRELATED CHARPTER

GRI 401:

Employment2016

-2 Benefits provided to full-time

employees that are not providedto temporary or part

time employees

P75-80

Human Rights and Employee RightsProtection

-3 Parental leave

P75-80

Human Rights and Employee RightsProtection

GRI 403:

OccupationalHealth and

Safety 2018

GRI 403:

OccupationalHealth and

Safety 2018

-1 Occupational health and

safety management system

P67-69

Occupational Health and Safety (OHS)

-2 Hazard identification, risk

assessment, and incidentinvestigation

P67-69

Occupational Health and Safety (OHS)

-3 Occupational health services

P67-69

Occupational Health and Safety (OHS)

-5 Worker training on

occupational health and safety

P67-69

Occupational Health and Safety (OHS)

-9 Work-related injuries

P67-69

Occupational Health and Safety (OHS)

-10 Work-related ill health

P67-69

Occupational Health and Safety (OHS)

GRI 404:

Trainingand Education2016

GRI 404:

Trainingand Education2016

1 Average hours of training peryear per employee

P81-82

Employee Development and Training

-2 Programs for upgrading

employee skills and transitionassistance programs

P81-82

Employee Development and Training

GRI 405:

Diversityand EqualOpportunity

2016

GRI 405:

Diversityand EqualOpportunity

2016

-1 Diversity of governance

bodies and employees

P70-74

GRI 413: LocalCommunities2016		Diversity, Equity, and Inclusion (DEI)
GRI 413: LocalCommunities2016

-1 Operations with local

community engagement, impactassessments, and development

programs

P83

Social Responsibility

GRI 414:

SupplierSocialAssessment2016

GRI 414:

SupplierSocialAssessment2016

-1 New suppliers that were

screened using social criteria

P61-65

Supply Chain Security

2 Negative social impacts in thesupply chain and actions taken

P61-65

Supply Chain Security

GRI 416:

CustomerHealthand Safety2016

GRI 416:

CustomerHealthand Safety2016

2 Assessment of the health andsafetyimpacts of product and servicecategories

P56-59

Product and Service Safety and Quality

FIRST 2024 ESG Report

To our valued readers,We express our gratitude for taking the time to read our 2024 Environmental, Social, andGovernance (ESG) Report. As we strive to enhance the standard of our ESG endeavors and thecaliber of our report preparation, we would greatly appreciate your input and valuable suggestions.You could provide us with your feedback through the mail, email, or by making calls, and so on.Rest assured that we will maintain the confidentiality of your personal information and the contentyou provide. Thank you!

FIRST 2024 ESG Report

Contact informationAddress: No.8 FusiteStreet, Lin’an, Hangzhou, ChinaTel: 0571-61076968Email: first-zqb@firstpvm.comWhat kind of stakeholder do you belong to:

□ Shareholders □ Employees □ Suppliers □ Users □ Government □ Community

□ Banks □ Academic institutions □ Others (please specify)

Your overall comments on this report are:

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