Report Preparation NotesIntroduction

This report is the third Environmental, Social andGovernance (ESG) Report (hereinafter the "ESG Report"or the "Report") released by Changhong Meiling Co., Ltd.Prepared in accordance with the principles of objectivity,standardization, transparency, and comprehensiveness,this Report provides a detailed disclosure of the Company'spractices and performance in environmental, social, andgovernance aspects for the year 2025.

Preparation BasisSelf-Regulatory Guidelines No. 17 for Companies Listed onShenzhen Stock Exchange — Sustainability Report (Trial)issued by the Shenzhen Stock Exchange (hereinafter referredto as the " Guidelines")Self-Regulatory Guidance No. 3 for Companies Listed onShenzhen Stock Exchange — Preparation of SustainabilityReport issued by the Shenzhen Stock ExchangeChina Corporate Sustainability Reporting Guide (CASS-ESG

6.0) issued by the China Enterprise Reform and Development

Society, and Zeren Yun Research InstituteSustainability Reporting Standards (GRI Standards 2021)issued by the Global Reporting Initiative (GRI)United Nations 2030 Sustainable Development Goals (SDGs)Sustainability Accounting Standards Board Standards (SASBStandards)International Financial Reporting Sustainability DisclosureStandards No. 1 — General Requirements for Disclosure ofSustainability-related Financial Information (IFRS S1) andInternational Financial Reporting Sustainability DisclosureStandards No. 2 — Climate-related Disclosures (IFRS S2)issued by the International Sustainability Standards Board(ISSB)Guiding Opinions on Central Enterprises' Fulfillment ofHigh-Standard Social Responsibility in the New Era issuedby the State-owned Assets Supervision and AdministrationCommission of the State CouncilReport Scope

The reporting period of this Report is from January 1, 2025,to December 31, 2025 (referred to as the "Reporting Period").To enhance the comparability and forward-looking nature

of this Report, certain disclosures appropriately reference datafrom previous years or includes forward-looking descriptions.The preparation of this Report covers Changhong Meiling andits subsidiaries. Unless otherwise speci?ed, the statistical scopealigns with the annual report.Data DescriptionThe data used in this Report is sourced from the Company'soperational raw data, publicly available government data, annualfinancial data, internal statistical reports, and other relevantsources. Financial data in this Report is denominated in RMB. Incase of any discrepancies with the ?nancial report, the ?nancialreport shall prevail.

This Report is published in electronic format and can beaccessed and downloaded from the Shenzhen Stock Exchangewebsite (www.szse.cn) or the Juchao Information website(www.cninfo.com.cn). If you have any comments or suggestionsregarding this Report or the Company's social responsibilityperformance, please email us at info@meiling.com, or call 0551-62219021.

De?nitions

Report Access and Feedback

Terms to be de?nedDe?nition

Changhong Meiling,the Company, we

Changhong Meiling Co., Ltd.Changhong Air

Conditioner

Sichuan Changhong Air Conditioner Co.,

Ltd.Zhongshan ChanghongZhongshan Changhong Electric Co., Ltd.Zhongke Meiling

Zhongke Meiling Cryogenic Technology Co.,

Ltd.Changmei LivingAppliances

Hefei Changhong Meiling Life Appliances

Co., Ltd.Jiangxi MeilingJiangxi Meiling Electric Appliance Co., Ltd.Mianyang MeilingMianyang Meiling Refrigeration Co., Ltd.Hefei IndustrialHefei Changhong Industry Co., Ltd.Ridian Technology

Changhong Meiling Ridian Technology Co.,

Ltd.Hongmei Intelligent

Sichuan Hongmei Intelligent Technology

Co., Ltd.

Contents

Future ProspectsAppendix

Ensuring Compliance,Cultivating ResponsibleBusiness

Driving Green and Low-Carbon Development,Protecting Our Ecosystem

EmbracingResponsibility,Connecting Better Lives

Advancing SmartManufacturing, RenewingBetter Services

Report Preparation NotesChairman's MessageBoard of Directors'ESGStatement

ESG Management

About Changhong MeilingCorporate Pro?leCorporate CultureCorporate Development CourseMeiling 2025 Milestones

Sustainability StrategySustainability GovernanceMateriality AssessmentDue Diligence and StakeholderCommunication

Improvement of Company GovernanceBuilding a Robust Risk Control Defense LineEnsuring Information TransparencyAdhering to Business Ethics

Stimulating Innovation VitalityAccelerating Intelligent TransformationPursuing Excellence in QualityBuilding Service Excellence

Combat with Climate ChangeEnvironmental Compliance ManagementResource RecyclingGreen Production and Operations

Building a Responsible Value ChainLeading Industry DevelopmentEmpowering Employee GrowthDedicated to Giving Back to Society

0302

Advancing SmartManufacturing, RenewingBetter Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendix

Chairman's Message

2025 was a crucial year for bringing the 14th Five-Year Plan to a successful conclusion and a pivotal year for ChanghongMeiling to accelerate its leapfrog development and achieve new breakthroughs. In the face of a rapidly changing marketenvironment, we remained ?rmly committed to high-quality development. Focusing on four key dimensions—compliantgovernance, intelligent transformation, low-carbon development, and social responsibility—we advanced our ESGstrategy in a coordinated manner, steadily fulfilled our ESG responsibilities, and continued to create diversified value,delivering solid results amid challenges and forging ahead with strong momentum.During the year, wemaintained stronggovernance discipline andcontinuously improvedgovernance e?ectiveness.

During the year, weremained committed toour mission and advancedgreen development in asolid and orderly manner.

During the year, weactively ful?lled ourresponsibilities andcontinued to create valuefor stakeholders.

With solid developmentmomentum anda keen awarenessof the signi?cantresponsibilities webear, we are embarkingon a new journey withrenewed determination.

During the year, wepursued excellenceand sustained stronginnovation momentum.

We consistently regarded compliant operations as the lifeline of the Company'sdevelopment. On this basis, we further improved our corporate governance structure,re?ned the operating mechanisms of the shareholders' meeting, the Board of Directors,and management, clari?ed the boundaries of powers and responsibilities at each level,and enhanced the scienti?c rigor, standardization, and e?ciency of decision-making.We also strengthened our internal control, compliance, and risk management systems,reinforced the “three lines of defense" for risk prevention and control, and upheldbusiness ethics. We also continued to improve investor relations management, ensuredcompliant and transparent information disclosure, and e?ectively safeguarded investorinterests.

We consistently regarded green development as one of our core strategies and remainedcommitted to reducing the environmental impact of our products and operations across the fulllifecycle. We strictly complied with environmental regulations and continuously strengthenedpollution prevention and control. Following a development path centered on energy conservation,resource efficiency, and circularity, we integrated green development concepts throughout theentire lifecycle, covering raw material procurement, product design, manufacturing, packaging andlogistics, and product recycling. We continued to promote the green upgrading of our productsand injected strong momentum into the Company's low-carbon transformation through concreteactions to protect the environment.We attached great importance to supply chain development and worked closely with our partnersto practice responsible procurement and build a green, secure, and sustainable supply chain.We adhered to a people-oriented philosophy by protecting employees' rights and interests andproviding broad platforms for their growth and development. We also actively ful?lled our socialresponsibilities by supporting rural revitalization and participating in public welfare initiatives,demonstrating corporate care through concrete actions. In doing so, we generated social valuewhile creating economic value and contributed to building a better society.Looking ahead, Changhong Meiling will remain firmly committed to high-quality development,with product innovation as the core driver, digital transformation as the underpinning, and talentdevelopment as the foundation. We will continue to deepen green technology innovation andadvance low-carbon practices across the entire value chain. By leveraging strong technologicalcapabilities to drive the industry toward higher-end, smarter, and greener development, ful?llingour ESG commitments through pragmatic actions, rewarding shareholders' trust with solidperformance, and responding to social expectations with a strong sense of responsibility, we willstrive to write a new chapter of sustainable development for Changhong Meiling in advancingChinese modernization.

We remained committed to enabling product renewal through technologicalbreakthroughs. The Meiling M Fresh Ultra 501S refrigerator pioneered a new industryparadigm with its all-scenario freshness-preservation technology, while the Blue OxygenGarment-Care Washer made its global debut, setting a new benchmark for the industry.Guided by our user-centered philosophy, we comprehensively advanced the “QualityImprovement Year" initiative, accelerated the digital transformation of marketing,and advanced the full online, mobile, and data-driven transformation of our businessoperations. Through stronger innovation capabilities and a steadfast commitment toquality, we continued to enhance users' experience of better living.

0504

Ensuring Compliance,Cultivating ResponsibleBusiness

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors' ESGStatement

About ChanghongMeiling

ESGManagement

About Changhong MeilingCorporate Pro?le

Corporate Culture

Founded in 1983 and headquartered in Hefei, Anhui, China, Changhong Meiling became the ?rst listed company in Anhui Provincewhen its A-share stock was listed on the Shenzhen Stock Exchange (hereinafter the "SZSE") in 1993 (Stock Code: 000521.SZ). In 1996, itsB-share stock was also listed on the SZSE (Stock Code: 200521.SZ), making it Anhui Province's ?rst dual-listed company (A- and B-shares)and earning recognition that same year as one of the Shenzhen Stock Exchange's top ten high-performing listed companies.As a national benchmark enterprise for technological innovation, the Company has consistently strengthened its core competitivenessthrough technology and product innovation. The Company has achieved continuous breakthroughs across multiple domains,including intelligent and simulation technologies; freshness preservation, odor puri?cation, and ultra-low temperature refrigeration;energy-saving and air-cooling solutions; thin-wall and ultra-thin design; as well as washing performance and fabric care. TheCompany's achievements have been recognized with numerous national honors, such as being designated a "National Green Factory"and a "National Technology Innovation Demonstration Enterprise." It has also been named a "Leading Enterprise in Quality in China'sHome Appliance Industry" and a "National Demonstration Enterprise for Industry-Academia-Research Collaboration Innovation," whileits "Smart Refrigerator Intelligent Manufacturing" initiative was selected as a national pilot demonstration project.The Board of Directors is the highest decision-making bodyfor the Company's ESG matters, responsible for integratingESG considerations into the Company's managementpolicies and operational decision-making processes. TheBoard places signi?cant emphasis on ESG initiatives and hasestablished an ESG Management Committee, chaired by theChairman of the Board. The ESG Management Committee isresponsible for studying and formulating the Company's ESGstrategic plans and objectives, establishing the managementsystem, evaluating and reviewing the Company's ESG-relatedstrategies, risks, and implementation performance, andreviewing the ESG Report prior to its submission to the Boardfor approval.Changhong Meiling highly values the expectations ofstakeholders regarding ESG matters. Taking into accountindustry characteristics and key issues arising from theCompany's operations, the Company conducts stakeholderengagement surveys, assesses, prioritizes and screens ESGtopics, and timely adjusts and determines its material ESGtopics.

Board ofDirectors'ESGStatement

Corporate Spirit

Code of Conduct

Brand Proposition

Core ValuesCorporate MissionHard Work, Pioneering, Perseverance, and Excellence

Accountability, Initiative, Innovation, and Cooperation

Beautiful China, Fresh Meiling

User-CentricityLet Better Days Come

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, RenewingBetter Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

Corporate Development Course

Meiling 2025 Milestones

June 2025

The Six Sigma Green Belt project of ChanghongAir Conditioner was recognized as a "Professional-level Achievement" in China's national qualityappraisal.

July 2025

Changhong Meiling officially launched theindustry-disruptive product – the M-Fresh Ultra502F Refrigerator, applying "rose-grade freshnesspreservation" technology to reshape industrystandards.The Shanshuijian EA Series new products ofChanghong Air Conditioner were officiallylaunched, creating an indoor "micro-climate"close to natural mountain-and-water conditionsand delivering an integrated air solution featuring"constant temperature, humidity, oxygen,cleanliness and quietness," thereby advancingair conditioners from standalone temperature-control devices to comprehensive air environmentmanagement platforms.The Hand-Wash Like · White Whale drum washingmachine was officially launched. Its "Hand-WashLike" redefines industry cleanliness standards,establishing another milestone in the ?eld of fabriccare and opening a new chapter for ChanghongMeiling's washing appliance division.December 2025

The Company held a new freezer product launchevent themed "The Power Combination, PeakDebut," unveiling two new freezer products:

"Inverter Energy-Saving King" and "Inverter Frost-Free King."

April 2025

The Company was successfully selected for the?rst batch of China's Consumer Premium Brandsannounced by the Ministry of Industry andInformation Technology of the People's Republicof China.The Company globally launched the new AIrefrigerator product, Frozen Fresh 505, introducingthe concept of "freshness defined by technologyrather than environment." This launch markeda technological breakthrough that subvertedtraditional preservation logic, empowering AI torede?ne freshness standards.A subsidiary, Mianyang Changhong Smart HomeAppliance Co., Ltd., was established to invest inand construct a washing machine project withan annual single-shift production capacity of onemillion units.

Establishmentof the Company1983

Successful listing ofA-shares in Shenzhen

1993

Successful listing ofB-shares in Shenzhen

1996

Award of "ChinaWell-KnownTrademark"

1997

Joint investment with theTechnical Institute of Physicsand Chemistry CAS toestablish Zhongke Meiling

2002

Strategic restructuring withSichuan Changhong ElectricCo., Ltd.

2005

Acquisition ofChanghong AirConditionerand ZhongshanChanghong

2009

Investment in aproduction base inPakistan for refrigeratorproject development

2011

Acquisition ofChanghong Ridian

2015

Launch of theindustry's ?rst fully-thin refrigerator

2019

Establishment ofa subsidiary forhome appliances

2020

Successful listingof Zhongke Meilingon the BeijingStock Exchange

2022

Release of thenew brandproposition:

"Beautiful China,Fresh Meiling"

2023

Launch of the "Blue OxygenHand-Wash Like" washingmachine and the ?rst ZhihuijiaAI large model

2024

Launch of the "ZhihuijiaEcosystem" andinvestment in a Indonesiamanufacturing base

2016

M-Fresh Refrigeratorrecognized with twoworld records2017

Investment of RMB 400million in constructionof the Meiling HefeiWashing MachineIntelligent Industrial Park

2018

Ensuring Compliance,Cultivating ResponsibleBusiness

Advancing SmartManufacturing, RenewingBetter Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendix

Chairman's

Message

Board of Directors'

ESG Statement

About Changhong

Meiling

ESGManagement

0908

ESG Management

Sustainability Strategy

Sustainability GovernanceGovernance StructureIn response to sustainable development trends and in compliance with national laws, regulations and governance requirementsfor listed companies, Changhong Meiling formulated a clear sustainability strategy. This involved systematically enhancingits ESG management system, conducting a materiality assessment, and deeply integrating ESG principles into its corporategovernance.

Guided by its vision and mission of "Meiling, Let Better Days Come," and anchored in its core positioning of "Smart Enjoyment ofa Green Future," Changhong Meiling has formulated a medium-to-long-term ESG strategy. This strategy centers on our roles asa "Green Lifestyle Advocate, Technology Innovation Driver, and Compliant Governance Practitioner." This strategy is built uponsix strategic pillars, supported by five key enablers: organization, systems, capabilities, culture, and finance. It comprehensivelyintegrates green transition with intelligent transformation, demonstrating the Company's ambition to lead the industry insustainable development.

The Company has established a "three-tier linkage mechanism" for sustainability governance composed of the Board ofDirectors, the ESG Management Committee, and the ESG Working Group. Within this structure, the Board of Directors serves asthe highest responsibility body. The ESG Management Committee, formed by key members of the Board, acts as the overarchingleadership body for ESG initiatives. Under the ESG Management Committee, the ESG Working Group is responsible for the dailyexecution of the Committee's affairs, implementation of resolutions, and advancement of related tasks. This ensures the effectiveimplementation of strategic plans and management requirements set by the ESG Management Committee. This tiered andspecialized ESG governance framework provides solid organizational support for achieving sustainability goals.

Review and approve the Company's ESG strategic plans and objectives,governance structure, and key policies.Review and approve the Company's ESG Report and disclosure of materialESG governance information.Review and approve major ESG matters and response plans for significantESG-related risks.Study and formulate the Company's ESG strategic plans and objectives, andestablish the ESG management system.Assess and review ESG-related strategies, risks and implementationperformance.Review the Company's ESG Report and other ESG-related matters.Handle other matters authorized by the Board of Directors and mattersrequired under applicable laws and regulations.

Decision-Making Tier

ManagementLevel

ExecutionBody

Board ofDirectors

ESGManagementCommittee

ESG WorkingGroup

Changhong Meiling Sustainability Strategy

Promote the standardized and institutionalized implementation of ESGinitiatives and fulfill relevant approval procedures.Implement ESG matters across the Company, strengthen interdepartmentalcoordination and communication, and advance execution of ESG-relatedmatters.Organize preparation and external disclosure of ESG-related reports andimplement the requirements of the ESG Management Committee.Monitor risks and issues arising in day-to-day ESG management, providefeedback and recommendations, and support future development planning.

Changhong MeilingSmart Enjoyment of a Green Future

Organizational

Safeguards

InstitutionalSafeguards

CapabilitySafeguards

CulturalSafeguards

Financial Safeguards

ExcellentGovernance

Green products

CollaborativeProgressIntelligentManufacturing

QualityConsumptionClimate Action

Continuouslyoptimizing thegovernance andoperational system

to empower theCompany's high-quality

developmentE?cient GovernanceSystemComplianceManagement SystemRisk control

Dual Carbon InitiativeLow-Carbon IndustrialParksClean energy

Green Product IterationProduct EnergyE?ciency RateProduct Quality Control

TechnologicalinnovationProduct innovationService innovation

Product ExperienceService UpgradeBrand Communication

Responsible supplychainEmployee rights andinterestsPublic WelfareInitiatives

Achieving carbon peakin our own operationsbefore 2030 and carbonneutrality before 2060

Take “ Full LifecycleGreen Management”as the core principleand develop a portfolioof low-carbon andenvironmentallyfriendly productscompliant with nationalstandards

Accelerate thedevelopment of new

quality productiveforces and advance

transformationtoward intelligent

manufacturing

Adhere to customer-centric productoperations and user-centric brand building,providing consumerswith di?erentiatedvalue-added products

Work together withsuppliers, employees,communities andother stakeholdersto jointly promotesustainabledevelopment

Smart technology enabler · Green lifestyle advocate · Harmonious society co-creatorStrategicPlanningStrategicPillarStrategicObjectives

Implement-ationPath

SafeguardMechanisms

1011

Organizational NameScope of ResponsibilitiesTier

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, RenewingBetter Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendixChairman's

Message

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

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Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendix

Institutional Mechanism

Capability Enhancement

The Company has established and continuously improved internal systems for sustainability management, informationreporting, and oversight and performance assessment. It has formulated and issued Implementation Rules of the Board ESGManagement Committee, which clarify the authority, workflow and decision-making mechanisms of the ESG ManagementCommittee. The ESG Management Committee convenes dedicated meetings on a regular basis. Review results are submitted in atimely manner to the Board of Directors and the ESG Working Group to guide follow-up implementation. An internal mechanismshall be established to monitor and supervise the management of ESG-related matters. The primary responsibilities of the ESGManagement Committee are defined to oversee and guide the effective implementation of the Company's ESG initiatives. Theperformance of senior executives in advancing ESG work shall be incorporated into the comprehensive performance appraisalsystem for management. This includes formulating the Company's ESG strategic plan, establishing the ESG management system,reviewing the Company's ESG management performance, and fulfilling key performance indicators (KPIs) for specific ESG topicssuch as talent development, environmental management, safe production, occupational health, scientific and technologicalinnovation, and the management of major liability accidents.

The Company actively organizes internal ESG training programs and participates in external industry ESG training activities toenhance ESG expertise and overall professional competence among relevant personnel. This has fostered a broad consensuscentered on ESG principles to drive the Company's high-quality development, laying a solid foundation for the deepening andcontinuous improvement of its ESG initiatives.

Changhong Meiling Participates in ESG TrainingChanghong Meiling Awarded the Top 100 of

the 3rd Guoxin Cup ? ESG Golden Bull Award

Risk Management

The Company has established a comprehensive sustainability risk management system, a normalized risk reporting mechanism,and differentiated risk response strategies to ensure transparent risk information and timely decision-making.

A closed-loop management mechanism of "risk identification – remediation – trackingand early warning – remediation verification" has been established. The Company hasalso set up a Compliance and Risk Control Committee to conduct comprehensive riskidentification and assessment.

Risks arising from changes in the external business environment: Identified risk mattersare tracked monthly, developments are closely monitored, and proactive and prudentpreventive measures are adopted.

Risks related to incremental business: Comprehensive contingency plans and responsestrategies are formulated, with phased implementation schedules and execution requirementsclearly defined. Compliance and Risk Control Departments convene regular meetings to solicitviews from functional management departments and risk decision-making bodies.Risks related to existing business: Major risks are assessed and response proposals aredeveloped, with clear objectives for risk resolution, organizational leadership, managementprocesses, resource support, and specific response measures.

A reporting mechanism for major risk matters has been established. Continuousoversight of the progress of major risk incidents is maintained through a monthlyreporting system, which is integrated into the performance assessment framework.

The Company has established sustainability objectives and a quantitative indicatorsystem. For the framework design, implementation pathways, and phasedachievements of relevant targets and indicators, please refer to the respective chapterson material topics in this Report.

Risk ManagementSystem

Risk ResponseStrategies and

Measures

Risk Reporting

and Supervision

Indicators and

Targets

Chairman's

Message

Board of Directors'

ESG Statement

About Changhong

Meiling

ESGManagement

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Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendix

Materiality AssessmentDue Diligence and Stakeholder Communication

In accordance with the requirements of Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange — SustainabilityReport (Trial), Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen Stock Exchange — Preparation of Sustainability Reportissued by the Shenzhen Stock Exchange and Reference Indicator System for ESG Special Reports of Central Enterprises Controlled ListedCompanies issued by the General O?ce of the State-owned Assets Supervision and Administration Commission of the State Council, theCompany conducted its materiality assessment by taking into account industry characteristics, actual operating conditions, and its businessmodel. The Company also incorporated its strategic development priorities and the key concerns of both internal and external stakeholders,and adopted a dual materiality assessment framework. Based on this process, a total of 21 material topics related to Environmental, Socialand Governance (ESG) were identi?ed.

The Company conducted on-site due diligence with stakeholders including heads of departments and key employees, Companysuppliers, and shareholders. Background research was carried out on the sustainability context of the regions where the Companyoperates, industry characteristics, and the full product lifecycle. The Company conducted in-depth analysis of local policy guidancedocuments, industry standards and regulatory requirements, topic lists and weighting methodologies adopted by internationallyrecognized ESG rating agencies, and ESG reports of peer companies, with a focus on key factors that may a?ect ESG topic selection aswell as associated risks and opportunities. Through online questionnaires, the Company collected views from internal stakeholdersregarding ?nancial materiality and from external stakeholders regarding impact materiality, in order to ensure the comprehensivenessand accuracy of ESG topic identi?cation.

Changhong Meiling 2025 Dual Material Topics List

Changhong Meiling Dual Materiality Matrix

HighFinancialand ImpactMaterialityTopics

Low FinancialMateriality,High ImpactMaterialityTopics

HighFinancialMateriality,Low ImpactMaterialityTopics

Low Financialand ImpactMaterialityTopics

Innovation-Driven developmentSupply chain managementProduct and service safety andqualityEnergy utilizationProtecting the rights and interests ofemployeesEmployee training and development

Business ethics and anti-corruptionInformation security andprivacy protectionCircular economyOccupational health andsafetyUtilization of waterresourcesCombat with climate changeStrengthening pollution preventionand controlCompliance management

Environmental compliancemanagementAnti-unfair competition

StakeholderExpectations and DemandsCommunication and Response

Government

Risk & internal controlAnti-fraud measures

Risk screeningComplaint mechanismCustomer

Service qualityProtect customer rights and interests

Ensure service standardsImprove service quality

Employee

Compensation and bene?ts protectionPromotion mechanismsEmployee growth and development

Employee caring

Improving compensation and bene?ts

systemsOptimizing career development

pathwaysEnriching diversi?ed employee trainingEmployee care initiatives and cultural

activitiesCommunity

Rural revitalizationSupporting public welfare initiatives

Implementing assistance programsActively participating in charitable

activities

Partners

Operational complianceCompliance with business ethicsSupply chain management

Performance of contracts andagreements in accordance with lawTransparent and fair business principlesFull lifecycle management of suppliers

Investors

Accurate information disclosureCommunication with investorsEnhanced ESG performance

Su?cient information disclosureDiversi?ed communication channelsElevate ESG management capability

Governance related tosustainabilityCorporate governmentGreen products

Social responsibilityEcosystem andbiodiversity

Chairman's

Message

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

Impact Signi?cance

Financial Signi?cance

Corporate government

Circular economy

Information security and privacy protection

Green productsUtilization of waterresourcesSocial responsibilityAnti-unfair competition

Ecosystem and biodiversity

Strengthening pollutionprevention and control

Protecting the rights and interests

of employees

Product and service safety and

qualityCompliancemanagement

Supply chainmanagement

Innovation-Driven development

Energy utilizationEmployee training anddevelopmentOccupational health and safetyBusiness ethics and anti-corruptionGovernance related tosustainabilityEnvironmentalcompliancemanagement

Combat with climate change

EnsuringComplianceCultivating ResponsibleBusinessChanghong Meiling strictly complies with applicable laws, regulations, andlisted company governance requirements, and continuously improves itscorporate governance framework while strengthening tax, compliance, andrisk management. Guided by the principles of integrity and fairness, theCompany fosters a sound market environment and creates long-term value forshareholders through high-quality development.

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Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

Improvement of Company GovernanceThe Company has established a governance system centered on the General Meeting of Shareholders, Board of Directors, andManagement, in accordance with relevant laws and regulations such as the Company Law of the People's Republic of China, theSecurities Law of the People's Republic of China, the Code of Corporate Governance for Listed Companies, the Shenzhen StockExchange Listing Rules, and internal regulations including the Company's Articles of Association, the Independent Director System,and the Board of Directors Rules of Procedure. To strengthen governance effectiveness, the Company has formulated a detaileddelegation-of-authority manual and implemented differentiated authorization management for subsidiaries, with clearly definedapproval procedures and authority limits, enabling scienti?c, rational, and e?cient subsidiary management. At the same time, theCompany has established and continuously re?ned a scienti?c, fair, and transparent performance evaluation system and incentive-restraint mechanism for directors and senior management. We continuously enhance the governance framework, improve the levelof standardized operations, and strengthen policy enforcement to ensure the General Meeting of Shareholders, the Board of Directors,and the Management perform their respective duties e?ectively, maintain checks and balances, and enable sound decision-making,thereby safeguarding the Company's high-quality development.The Company promotes the development of board diversity policies, the selection and appointment of Company directors strictlyprioritize compliance as the premise, professionalism as the core, and role suitability as the guiding principle. Multiple factors arecomprehensively considered, including basic quali?cations, professional competence, ethical standards, structural compliance, andindustry experience, actively building a diverse, complementary, balanced, and inclusive Board team. Establish a scienti?c evaluationmechanism to conduct regular assessments of Board members, ensure that they devote su?cient time and energy to the Company'sa?airs, and guarantee the e?ectiveness of their performance of duties.In 2025, the size and composition of the Board fully complied with applicable laws, regulations, and the Articles of Association. TheBoard maintained a standardized governance structure and diversified composition, effectively safeguarding scientific decision-making and governance e?ectiveness.

The General Meeting ofShareholders is the Company'shighest authority and isresponsible for reviewing andapproving major corporatematters.

The Board of Directors is accountable to theGeneral Meeting of Shareholders and servesas the Company's decision-making body. It isresponsible for implementing resolutions of theGeneral Meeting of Shareholders, formulatingbusiness plans and investment proposals,among other duties.

The Management actsas the executive bodyof the Company and isresponsible for carrying outday-to-day operational andmanagerial a?airs.

Board ofShareholders

Board ofDirectors

Management

Organizational NameTotal NumberFemale MembersBreakdown

Board of Directors923 Independent Directors, 6 Non-Independent DirectorsESG Management Committee621 Independent Directors, 5 Non-Independent DirectorsAudit Committee513 Independent Directors, 2 Non-Independent DirectorsStrategy Committee711 Independent Directors, 6 Non-Independent DirectorsRemuneration and Assessment

Committee

413 Independent Directors, 1 Non-Independent DirectorsNomination Committee513 Independent Directors, 2 Non-Independent Directors

Number of CompanyDirectors

Number of IndependentDirectors

Number of FemaleDirectors

Number of Female SeniorManagement Personnel

Percentage of IndependentDirectors on the Board

33.33

%Proportion of femaledirectors

22.22

%Percentage of Female SeniorManagement Personnel

28.57

%

Organizational Structure Chart

Board ofShareholders

Board ofDirectors

ManagementStrategy CommitteeAudit CommitteeNomination CommitteeRemuneration andAssessment CommitteeESG Management Committee

2021

Ensuring Compliance,Cultivating ResponsibleBusiness

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,

ConnectingBetter Lives

FutureProspectsAppendixChairman's

Message

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

Building a Robust Risk Control Defense Line

Compliance Management

Management of Impacts, Risks and Opportunities Related to Compliance OperationGovernance Related to Compliance Operations

Strategy Related to Compliant Operations

Indicators and Targets Related to Compliance Operation

Changhong Meiling consistently adheres to integrity-based operations and maintains compliance as a core business principle. Complianceconcepts are integrated into all aspects of operations and management through continuous improvement of compliance operatingmechanisms, stronger compliance risk prevention, enhanced compliance review procedures, and deeper development of complianceculture, thereby promoting high-quality corporate development through e?cient compliance management.

The Company has established a comprehensive compliance management system, including the Basic Compliance and Risk ControlManagement System, the Measures for Compliance Review Management, the Detailed Rules for Compliance and Risk Control Work,the Standards for the Internal Control System, the Measures for the Management of Compliance and Risk Control Administrators, andthe Measures for Investigating Liability for Non-compliant Business Operations and Investments. These systems form an institutionalframework covering key areas such as investment, operations, risk control, and human resources, ensuring that compliance requirementsare embedded throughout all operational processes.The Company has established a Compliance and Risk Control Committee, composed primarily of senior executives and managementmembers. Under this structure, a Compliance Leadership Group serves as the decision-making core, primarily responsible for reviewingand deploying strategic plans and objectives for compliance and risk control work, and coordinating solutions for key and di?cult issuesin the compliance management domain. A Compliance Committee O?ce is set up as the executive center, focusing on the day-to-daymanagement of compliance and risk control to ensure the precise implementation of all compliance requirements and the continuousoptimization of the compliance management organizational system. Annually, the Company conducts comprehensive risk identi?cationacross strategic, financial, compliance, market, operational, and legal domains. Using a risk assessment model, risks are categorizedinto three levels—low, medium, and high—resulting in a risk identi?cation list that clari?es responsible persons and units for risk events.Regular reviews are organized.

The Company has established an integrated compliance, risk control, and internal control management system that is risk-oriented,compliance-focused, and internal control-driven. This system features scienti?cally designed management bodies with clearly de?nedresponsibilities and appropriately allocated personnel. Based on three risk levels—low, medium, and high—a "three lines of defense"framework for compliance and risk control management has been constructed, comprising business departments, the Compliance andRisk Control Department, the Audit and Supervision Department, and decision-making bodies. Compliance review is embedded intooperational management processes as a mandatory procedure for critical business activities, including the formulation of core policies,

To ensure sustainable compliant operations, risk management is treated as a primary task. The goal is to establish a closed-loop riskmanagement mechanism of "risk identification – remediation – tracking and early warning – remediation verification," build a riskmanagement system encompassing risk identi?cation, assessment, monitoring, and response, and implement a regular risk reportingmechanism to ensure transparent risk information and timely decision-making.

The Company held the 2025 Internal Auditor Training for the Management System

Types of Risk and

Opportunity

Risk and OpportunityDescription

ImpactSeverity

ImpactTimeframe

Mitigation MeasuresSta? Integrity Risk

Unethical behavior by companyemployees may lead to a declinein consumer recognition of theCompany brand.

MediumLong-term

Strengthen awareness of discipline and rules.Continuously enhance the integrity and riskprevention awareness of management andsta? through measures such as signing IntegrityUndertakings and conducting integrity educationand training.

Types of Risk andOpportunity

Risk and OpportunityDescription

ImpactSeverity

ImpactTimeframe

Mitigation MeasuresPolicy andRegulatory Risk

Changes in domestic andinternational laws and regulations(e.g., Anti-Monopoly Law) maylead to increased compliancecosts.

Medium

Medium toLong Term

Closely monitor changes in relevant policiesand regulations, and implement preventive riskmeasures in advance.

Market Reputation

Risk

Non-compliant incidents maylead to customer loss and stockprice decline.

HighShort term

Formulate relevant reputation managementand response policies, clarify incident handlingprocedures and division of responsibilities, andswiftly mitigate the adverse impact of negativepublicity on the Company.

Brand ValueOpportunity

A positive corporate imagecontributes to enhanced brandvalue.

MediumLong-term

Improve compliance credibility with referenceto ISO 37301 and other recognized standards.

Overseas Market

Policy andCompliance Risk

International business operationsface risks from policy changesin foreign customs, compliance,taxation, export controls, etc.,potentially leading to surgingexport costs, supply chainrestructuring, and restrictedmarket access.

Medium

Medium toLong Term

Continuously monitor customs, tax, and exportcontrol policy developments in trade partnercountries, establish a "penetrative" early-warningmechanism, and formulate di?erentiated policyresponse plans for key markets; leverage adiversi?ed supply system and accelerate theregionalization of supply chain layout to reducereliance on any single market.

decision-making on significant matters,execution of major contracts, operation of keyprojects, large-value procurement and sales,and management of substantial funds. TheCompany conducts compliance training andawareness programs, requires all employeesto sign compliance commitment letters, andcontinuously strengthens the legal mindset,compliance awareness, and legal/complianceexecution capabilities of both staff andcompliance personnel, effectively advancingcompliance initiatives.

In 2025, the Company completed all target tasks related to compliance governance. No major litigation, arbitration, or other risk eventsoccurred during the reporting period, and no violations or penalties were recorded, with no ?nes incurred.

Over the next 3-5 years, the Company will continue to focus on the objectives of "Stable Operations, Compliant Management, AssetSecurity, and Strategic Realization." It commits to adhering to laws, regulations, industry supervisory requirements, and internal rulesand systems, aiming to achieve zero occurrences of major operational risk events.

Total Number of StandardizedGovernance & ComplianceTraining Sessions

Times

Total Duration ofStandardized Governance &Compliance Training

Hour

Total Number of Participantsin Standardized Governance& Compliance Training2,024

Person

2025, the Company

2223

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

In accordance with the Basic Standards for Enterprise Internal Control and relevant governmental policy directives, the Company hasformulated various internal control systems, including the Basic Compliance and Risk Control Management System, the Measures forCompliance Review Management, the Standards for the Internal Control System, and the Risk Management Policy. These documentsdefine internal control governance bodies, division of responsibilities, management principles, operational requirements, and proceduralarrangements. The Company's internal control system consists of the Board of Directors (providing guidance and evaluating internal controle?ectiveness), the Compliance and Risk Control Department (the primary responsible department), the Audit Department (the departmentorganizing internal control evaluations), and various functional departments (departments responsible for implementing and executing internalcontrols). Internal control audits are conducted at both internal and external levels, encompassing comprehensive audits and inspectionsacross areas such as production and warehousing, procurement and payments, sales and receivables, research and development, andcapital and investment. For key domains—including tender-based procurement, financial management, personnel management, servicemanagement, and safety management—as well as for high-risk business activities, speci?c operational policies or specialized guidelines havebeen established to strengthen internal control. A contract review mechanism has been implemented, supported by a contract managementsystem, to e?ectively monitor the signing and ful?llment of contracts and prevent disputes or inadequate performance. Monthly screening forsigni?cant risks is conducted, with remediation measures formulated and advanced monthly for identi?ed risk issues. The Company placeshigh importance on the development of ?nancial internal controls, establishing a system centered on accounting control and managementcontrol. The Internal Audit Management System has been formulated to provide an institutional foundation for internal audit work, ensuring thee?ective execution of the Company's internal control procedures. Tax management policies such as the Measures for Value-Added Tax InvoiceManagement and the Measures for the Management of Pre-Tax Deduction Vouchers for Corporate Income Tax have been established, promotingthe digital transformation of tax management to mitigate tax-related risks.The Company earnestly ful?lls its tax obligations, declares tax information in a timely and accurate manner, conducts tax declaration and taxpayment in an orderly manner, and voluntarily accepts tax inspections. For many years, the Company's tax credit rating has been rated as ClassA by the tax authorities.

Internal Control

Ensuring Information Transparency

Protection of Investors' Rights and InterestsChanghong Meiling has established and re?ned mechanisms to protect investors' rights and interests. We proactively build communicationbridges with investors, respond promptly to their concerns, and communicate the Company's value. Our compliant information disclosurepractices enhance investors' understanding and recognition of the Company. We continuously improve investor relations management to buildand maintain a positive image in the capital markets.The Company maintains a complete business system and independent operational capabilities. It operates independently from its actualcontroller and controlling shareholders in terms of business operations, personnel, assets, Organizational structure, and finance. TheCompany implements a continuous, stable, and transparent pro?t distribution policy. While balancing the Company's long-term interests andsustainable development, it emphasizes providing reasonable returns to investors. In accordance with the Company's Articles of Associationand the Shareholder Return Plan for the Next Three Years (2024-2026), pro?t distribution is conducted under the premise that the Company'spro?tability and cash ?ow support normal operations and long-term development, thereby safeguarding investors' rights and interests. In anysingle ?scal year, the total cash dividends to be distributed (including any interim cash dividends) shall be no less than 15% of the distributablepro?ts of the listed company's parent entity for that year, but shall not exceed the lower of the distributable pro?ts presented in the parentcompany ?nancial statements and the consolidated ?nancial statements.Based on confidence in the Company's development prospects and recognition of its value, during the reporting period, the Companyimplemented a share repurchase to enhance investor returns and market con?dence. A repurchase plan was formulated and executed for A-sharerepurchase, with a total repurchase amount ranging from RMB 150 million (inclusive) to RMB 300 million (inclusive). The repurchased shares areintended for implementing equity incentive plans, aiming to strengthen investor con?dence, improve shareholder returns, further improve theCompany's long-term incentive mechanism, and promote the Company's sustained, stable, and healthy development.

Enhancing Information DisclosureThe Company complies with the relevant requirements of Shenzhen Stock Exchange Stock Listing Rules and the Self-RegulatoryGuidelines No. 1 for Companies Listed on Shenzhen Stock Exchange —Standard Operation of Main Board Listed Companies issued byShenzhen Stock Exchange. It has formulated information disclosure-related policies including the Information Disclosure ManagementPolicy and the Financial Reporting Management Provisions, continuously strengthening information disclosure management andful?lling disclosure obligations for major events to ensure that information disclosure is truthful, accurate, complete, timely, fair, andeffective. In addition, on the basis of ensuring compliant information disclosure, the Company appropriately increased voluntaryinformation disclosure to improve the reference value and utility of its disclosed information. Adhering to regulations including theInside Information Confidentiality Policy and the Registration Management System for Persons with Access to Insider Information

The Company held the 2025 Confidentiality Work Conference

Investor Relations Management

The Company has established policies including the Investor Relations Management Policy, the Reception and Promotion Work Policy,and the Brand Crisis Early Warning Management Regulations, diligently carrying out all aspects of investor relations management. Weengage with investors through various channels such as the Shenzhen Stock Exchange's "Interactive Easy" platform, hotline, email,institutional research meetings, brokerage strategy conferences, reverse roadshows, and earnings briefings. We actively listen toinvestors' opinions and suggestions to deepen communication. The Company strengthens public sentiment management throughproactive monitoring, real-time handling, and post-event follow-up, providing appropriate responses promptly to guide positivediscourse and e?ectively prevent and properly manage reputational risks.

2025, the Company

2024 Annual Pro?t Distribution AmountRMB

339.8748

millionNumber of Shares Repurchased During theReporting Period12,487,901

shares

Percentage of Net Pro?t Attributable to Shareholders of the ListedCompany Distributed

48.60

%

Number of Investor Inquiries Responded tovia the "Interactive Easy" Platform

timesInvestor Hotline Calls Answered

times

Institutional Investor Visits Received

person-times

Earnings Brie?ngs Held

times

Investor Reception Sessions

times

Percentage of Repurchased Shares to Total Share Capital During theReporting Period

1.2125

%

of Listed Companies, the Companystandardizes internal proceduresfor reporting, transmitting, andconfidentiality procedures for majorinformation, strictly controlledthe scope of informed persons,and effectively prevented risks ofinformation leakage. In 2025, theCompany cumulatively disclosed93 announcements and relateddocuments. No incidents of insiderinformation leakage or violationsof information disclosure occurredduring the reporting period, e?ectivelysafeguarding the legitimate rightsand interests of the Company and itsstakeholders.

2425

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, RenewingBetter Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors'

ESG Statement

About Changhong

Meiling

ESGManagement

The Company organized a visit to an Integrity Warning Education Base

Adhering to Business Ethics

Anti-Corruption Management

Changhong Meiling has established an integrated management system of compliance, risk control, and internal control under a rule-of-law framework, and conducts supervision and inspections of potential violations and irregularities on an irregular basis. The Companyconsistently maintains a zero-tolerance stance towards illegal activities, disciplinary violations, and any conduct not in good faith.

The Company attaches great importance to the prevention and control of risks related to commercial bribery, corruption, fraud, andintegrity compliance. It has formulated systems including the Management Provisions on Anti-Corruption, Anti-Bribery and Anti-Fraud,the Contract Management System, and the Trademark Management System, embedding integrity requirements into core processessuch as procurement and bidding, supplier admission, and channel development authorization. The Company has establisheda leadership group for anti-commercial bribery and anti-corruption/fraud management, with senior management serving as thecore decision-making body for specialized management. At the same time, the Compliance and Risk Control Department has beendesignated as the department responsible for daily implementation and advancement of related work, tracking recti?cation progressand e?ectiveness throughout the process to ensure closed-loop risk prevention and control management. The Company organizedmanagement personnel and employees in key positions to sign the Integrity Undertakings, conducted one-on-one integrity interviewswith newly appointed management personnel and employees in key positions, and provided thematic training on anti-corruptionlaws and regulations for management personnel and employees in important positions. In addition, the Company organized warningeducation activities, including the study of typical corruption cases and visits to integrity warning education bases, in order to foster asound environment for integrity compliance. The Company also carried out accountability assessments in strict accordance with theSpecial Recti?cation Plan for Integrity Work and the Implementation Measures for Accountability for Illegal Operation and Investment,promptly addressing loopholes in operational management. Furthermore, integrity clauses were incorporated into anti-corruptionmanagement policies, procurement contracts, and distributor agreements, or separate integrity cooperation agreements weresigned with business partners, clearly specifying integrity obligations, breach liabilities, and reporting channels, thereby continuouslyimproving the Company's operational and management standards.In 2025, a total of 3,367 employees participated in anti-commercial bribery and anti-corruption training, representing 74% of allemployees. Neither the Company nor its employees were involved in any corruption, bribery, or fraud cases concluded by or undertrial in court. No employees were dismissed or subject to disciplinary action due to corruption, and no contracts with business partnerswere terminated or not renewed as a result of corruption-related incidents.

Whistleblower Protection

Anti-unfair Competition

Changhong Meiling has formulated the Measures for Petition and ReportingManagement, which clearly stipulate reporting channels, reportingmethods, and whistleblower protection measures. Multiple publicreporting channels have been established, including a reporting hotline,disciplinary inspection email, and reporting mailbox. Whistleblowers maysubmit complaints or reports anonymously, fundamentally preventing thedisclosure of whistleblower information. All reporting channel terminalsare directly managed by the Company's disciplinary inspection office,thereby reducing the risk of information leakage.For individuals making real-name reports and providing valid evidence,the Company adopts strict con?dentiality measures and strictly prohibitsany form of suppression or retaliation. Personnel responsible for violatingcon?dentiality requirements will be subject to strict and severe disciplinaryaction. In addition, the Company has established a whistleblower rewardmechanism, under which effective whistleblowers are commended andrewarded, in order to encourage employee participation and jointlysafeguard the Company's integrity image.

The Company strictly complies with the Anti-Monopoly Law of the People's Republic of China, the Anti-Unfair Competition Law ofthe People's Republic of China, the Foreign Trade Law of the People's Republic of China, as well as applicable laws and regulationsgoverning overseas business operations. It has formulated institutional documents including the Legal A?airs Management Systemand the Management System for the Protection of Trade Secrets, and establish a Market Order Management Committee in chargeof anti-monopoly and fair competition compliance, to prevent unfair competition practices such as false advertising, monopolisticconduct, and infringement of trade secrets, thereby establishing an honest and fair competition mechanism and fostering a fair marketenvironment. The Company actively responded to the 2025 China Fair Competition Policy Publicity Week, organizing special trainingsessions on anti-monopoly law, anti-unfair competition law, and trade secret protection. These sessions focused on topics includingantitrust filing and review of business operator concentration, emerging anti-monopoly risk points, anti-monopoly investigations,and anti-monopoly civil litigation. In addition, the Company established a full-process anti-monopoly and fair competition

Mobile OA Communication QQ

Group539027***Reporting Hotline0551-62219043

Reporting Email

chmljiwei@meiling.com

The Company organized special training sessions on anti-monopoly law and anti-unfaircompetition law

risk management mechanism,systematically standardizing anti-monopoly and fair competitionrisk control. Based on industrycharacteristics and business models,the Company identified potentialcompliance risk points, rejectedclauses violating fair competitionprinciples, and opposed pricemonopoly provisions. In 2025, theCompany did not experience anylitigation or major administrativepenalties arising from unfaircompetition practices.

AdvancingSmart ManufacturingRenewing BetterServicesChanghong Meiling adheres to fundamental principles while pursuinginnovation, guided by the orientation of "pursuing innovation, advancingintelligence, and improving quality." The Company integrates technologicalinnovation throughout the entire development process, continuously tacklingcore technological bottlenecks; deepens the upgrading of intelligent and digitalmanufacturing, empowering production efficiency and process improvementthrough smart manufacturing; strictly controls product quality to consolidatethe foundation for development with high-quality products; and upgrades itscustomer service system to enhance user experience through considerate full-process services, thereby creating a new corporate benchmark for China's homeappliance industry.

2726

2829

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, RenewingBetter Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,

ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

Stimulating Innovation VitalityChanghong Meiling regards technological innovation as a core strategy and concentrates on integrating scienti?c and technologicalinnovation resources. The Company continuously improves R&D innovation incentive measures from multiple dimensions, includingsystem construction, platform support, and talent assurance, while promoting the efficient transformation and application ofinnovation achievements, strengthening full-chain intellectual property protection, improving the technology ethics governancesystem, and comprehensively driving technological and product innovation upgrades to consolidate the scienti?c and technologicalfoundation for high-quality development.

The Company attaches great importance to and continuously strengthens its R&D innovation system by establishing a technologicalR&D structure composed of the User and Product Development Center, Innovation Design Center, and Testing and ExperimentalCenter. The senior management shall be responsible for research and development and innovation management, and leverage a dual-driven model of "independent R&D + collaborative innovation," the Company conducts innovation research across multiple ?elds andcontinuously expands the boundaries of technological application.The Company has established and improved an internal management system for technological innovation and implementedinnovation management regulations including the Product Design and Development Control Procedure, the Technical InnovationProject Management Provisions, the Product Development Project Management Measures, the Enterprise Technical StandardizationManagement Provisions, and the Annual Incentive Plan for Standards and Norms.

Changhong Meiling consistently adheres to an innovation-driven development strategy and has established and continuouslyimproved a risk identification, assessment, and response mechanism in the field of innovation. The Company has embeddedopportunity assessment and risk management related to innovation-driven development throughout its overall internal control andrisk management system, ensuring that its strategic planning and operational decision-making can effectively seize opportunitiesarising from industry transformation, properly address various risks brought by technological iteration and market competition, andsafeguard stable operation and sustainable development.The Company continuously strengthens the construction of its R&D innovation system by establishing an innovation model of"talent + platform + mechanism." It actively attracts and cultivates innovative talent, builds innovation platforms, optimizes incentivemechanisms, consolidates the four foundational pillars: team, technology, platform, and product. The Company deepens industry-university-research cooperation, promotes collaborative R&D across the industrial chain, and advances the IPD process to acceleratethe transformation of technological innovation into practical products. In 2025, the Company possessed 3 national-level, 9 provincial/ministerial-level, and 6 municipal-level scienti?c research and technology service platforms.

The Company consistently adheres to a market-oriented approach, focusing on the development and application of high and newtechnologies and new products, with research into new materials, new processes, and technologies with independent intellectualproperty rights as key priorities. It has established a new pattern of technological research and product development featuring"developing one generation, reserving one generation, and commercializing one generation," continuously strengthening capabilitiesin AI technology, inverter technology, simulation technology, freshness preservation technology, refrigeration technology, and newmaterial technology to enhance core competitiveness.

Innovation System Layout

Technical Research on "Heat Transfer Characteristics of Sealing Components and PerformanceEnhancement of Anti-Condensation Tubes": Established a CFD heat transfer simulation model

Changmei Living Appliances further deepened strategic cooperation with higher education institutions

Technical Research on "Impact Mechanismof Refrigerator Temperature Fluctuationson Food Quality and Flavor": Establisheda detection method for volatile flavorcompounds in food

Governance Related to Innovation-Driven

Strategy Related to Innovation-Driven

Management of Impacts, Risks and Opportunities Related to Innovation-Driven

Types of Risk and

Opportunity

Risk and Opportunity Description

ImpactSeverity

ImpactTimeframe

Mitigation Measures

Market risks

R&D in smart home appliances and energy-saving technologies requires substantialcapital investment, and market acceptancecan vary, creating potential risks ofunsuccessful market promotion.

High

Mediumterm

Shortens product development cycles;fully utilizes academic resources suchas universities to address technicalchallenges;reduce trial-and-error costs.As consumer demand for high-endand personalized products continuesto increase, a mismatch between R&Ddirection and market demand may lead toinventory accumulation.

Medium

Mediumterm

Comprehensively implement theIntegrated Product Development (IPD)process to establish a business andcustomer-oriented R&D work?ow.Intellectualproperty risk

Insu?cient patent protection for coretechnologies may result in technologyleakage.

HighShort term

Establish a patent early warning systemto proactively avoid infringement risks.International patent barriers (e.g., EUenergy e?ciency standards) may restrictthe global expansion of technologies.

Medium

Mediumterm

Plan ahead by establishing overseas R&Dcenters to accelerate the localizationprocess for technology and production.Marketopportunities

Driven by the national "Dual Carbon" goals,demand for high-energy-e?ciency andlow-emission products continues to grow.High-energy-e?ciency and low-energy-consumption products have become coregrowth drivers.

Medium

Medium toLong Term

Accelerate R&D in low-energy-consumption and environmentallyfriendly products to strengthen corecompetitiveness.

3031

Ensuring Compliance,Cultivating ResponsibleBusiness

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,

ConnectingBetter Lives

FutureProspectsAppendixChairman's

Message

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

Leveraging its strong industrial technologyfoundation and professional expertise,Changhong Meiling continuously promotes theindustrialization of scientific and technologicalachievements in line with its actual developmentneeds and technology application directions,creating diversified value for users and injectinginnovative momentum into the high-qualitydevelopment of the industry.

Changhong Meiling has established intellectual property managementsystems including the Special Trademark Authorization ManagementProvisions, the Detailed Rules for Trademark Management SystemImplementation, the Trademark Management System, and theProject Management Measures, clearly de?ning requirements for thecreation, application, protection, and management of intellectualproperty at every stage, and controlling product infringement risksfrom the project source. The Company encourages active employeeinnovation, provides timely patent incentives for generated patents,actively promotes patent transformation and product application,and encourages intellectual property creation to maximize intellectualproperty value. During the reporting period, the Company did notexperience any infringement litigation.

Changhong Meiling strictly adheres to technology ethics principles, and continuously improves its science and technology ethicsgovernance system. The Company standardizes science and technology ethics risk management throughout the full process of R&D,production, and sales, regularly carries out science and technology ethics safety education and specialized training, and continuouslydeepens employees' awareness and understanding of AI ethics. During the reporting period, the Company did not record any violationsof science and technology ethics.

The Company established overall targets to shorten R&D cycles and improve R&D e?ciency. For A+ and A-class products, the productdevelopment cycle was shortened by 26%, while ensuring that innovation investment precisely matches market demand, improvingreturns on innovation investment. At the same time, through full life-cycle quality management, the Company enhanced productdurability and customer satisfaction, reducing resource waste caused by quality issues. The Company also controlled the totalnumber of refrigerator and freezer SKUs, focusing on core products, reducing redundant models, optimizing supply chain e?ciency,lowering environmental and management costs associated with production and inventory, and continuously strengthening corecompetitiveness.

The statistical scope for "valid patents," "invention patents applied in core business operations," and "software copyrights" covers ChanghongMeiling, Hongmei Intelligent, Jiangxi Meiling, Mianyang Meiling, Ridian Technology, Changmei Living Appliances, Changhong Air Conditioner,Zhongke Meiling, and Zhongshan Changhong.

The Company innovativelyapplied Changhong Meiling'sAI self-optimization technologyand globally launched the newAI refrigerator product "FrozenFresh 505."

The Company launchedan intelligent full-scenariovaccine solution andsuccessfully deliveredthe fully air-cooled low-temperature storage unitwith frost-free defrostingtechnology.

The Company upgradedand launched airconditioner series including"Living & Dining Room Pro"and "Super Energy SavingPro," continuously pushingthe boundaries of productperformance.

The Company launched the"Hand-Wash Like · WhiteWhale" drum washingmachine, rede?ningindustry cleanlinessstandards.

The Company developed coretechnology for multi-chamberdirect-injection high-?repowergas stoves, which has beensuccessfully applied in ?ve endproducts.

Innovation AchievementsApplication

Refrigerator and Freezer

Products

Biomedical SectorAir Conditioner Products

Washing MachineProducts

Kitchen Appliances and SmallHousehold Appliances

Changhong Meiling Frozen Fresh 505 Refrigerator"Hand-Wash Like · White Whale" Drum Washing Machine

The human-sensingair conditioner jointlydeveloped by ChanghongAir Conditioner and highereducation institutionsreceived certification fromChina Household ElectricAppliances ResearchInstitute.

Changhong Meiling Intellectual PropertyManagement System Certification

Intellectual Property Protection

Science and Technology Ethics Governance

Honors and Awards

In 2025, the Company recorded

Indicator2025 TargetsReporting PeriodProgress During the Reporting PeriodR&D investmentR&D expense ratio: 3.0%Short termCompleted

R&D investment ofRMB96,753.67

million

3,776

valid patents

1,705invention patents applied incore business operations

Innovation achievements

Indicators and Targets Related to Innovation-Driven

software copyrights

3233

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,

ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

Accelerating Intelligent Transformation

Digital Operational Management

Digital Transformation Development

Guided by its "data strategy," Changhong Meiling focuses on the goals of "comprehensive digitalization" and "comprehensive intelligence,"deepening the establishment of intelligent digital management systems and advancing digital infrastructure implementation. The Companypromotes the deep integration and innovative application of next-generation information technology with manufacturing, driving digitaltransformation and data business restructuring.Changhong Meiling has deeply applied next-generation information technologiessuch as AI and big data. Based on the stable operation of systems including ERP,SCP, WMS, and PLM, and supported by the Doris data warehouse and BI platform,the Company has established a uni?ed big-data intelligent decision-making serviceplatform. This platform enables: real-time monitoring of key indicators such asaccounts receivable and cash flow; intelligent early warning of operational risks;formation of a "data-driven" financial governance model covering the full valuechain, supporting precise decision-making and continuous cost reduction. TheCompany has also achieved: automatic generation of core operational reports ona T+1 basis; near real-time updating of key indicators; and panoramic operationalinsight capabilities.

In response to the characteristics and challenges of the home applianceindustry, Changhong Meiling adheres to an operational philosophy ofinnovation-driven development, internal-external integration, industrialcollaboration, marketing specialization, and digital specialization.Centered on users, the Company advances along three paths: digitalsupport for business operations; digital value creation; and digital-driveninnovation. This enables digitalization of core business processes, digitalempowerment of business and products, and effective implementationof the Company's digital transformation strategy. In 2025, the Companywas recognized as a provincial benchmark enterprise for integrateddevelopment of advanced manufacturing and modern service industries;the project "Promoting Smart Supply Chain Transformation andUpgrading Based on 5G + Industrial Internet Technology" was selected forthe 2025 Typical Cases of Manufacturing Digital Transformation.

Changhong Meiling Refrigerator Intelligent Manufacturing ProductionLine

Changhong Air Conditioner Intelligent Control Center

Changmei Living Appliances "AI Healthy Kitchen" Intelligent EcosystemChanghong Meiling obtained the DCMM (DataManagement Capability Maturity Model) Steady Level

(Level 3) Certification

Honors and AwardsTwo Changhong Meiling cases wererecognized by China Association forMechatronics Technology and Applicationas Typical AI Application Scenarios.

Using an intelligent transaction platform as the hub, theCompany launched the uni?ed business portal "XinhongyeAPP" and upgraded the user-side smart home application,further deepening the "C+3 customer order model." AI toolsare systematically applied for scenario-based marketingand user acquisition, building a digital marketing system.

Based on the IPD (Integrated Product Development)project management system, the Company promoted thelaunch of a new product trial production control system,forming an integrated digital R&D and manufacturingsystem with: IPD as the framework; a collaborativeplatform as the linkage mechanism; trial production andasset management systems as support.

Through deep application of the MES system and industrialbig data platform, the Company promoted deploymentof the DQS digital quality management system and thecarbon asset full life-cycle management platform. Thisforms a digital transformation matrix covering productionoperations, quality control, and carbon asset management.

Based on the industrial internet platform, the Companyupgraded and promoted the ISRM intelligent supplychain management platform, building a unified datahub. Through continuous optimization of procurement,inventory, and logistics decisions using data models,the Company established a digital supply chain systemcovering the entire process.

Digitalmarketing

Digital

R&D

DigitalManufactur-ing

Digital SupplyChain

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,

ConnectingBetter Lives

FutureProspectsAppendixChairman's

Message

Board of Directors'

ESG Statement

About ChanghongMeiling

ESGManagement

Pursuing Excellence in Quality

Product Quality Assurance

Under the theme of "Quality as the Foundation, Users as the Priority," Changhong Meiling fully implements its corporate value of "user-centered" development, comprehensively advancing the "Year of Quality Improvement" initiative. Through a sound quality governanceframework, strict internal control standards, and full-process quality monitoring, the Company is committed to providing customerswith safe, reliable, and high-quality products and services.

The Company has established a Quality Committee, chaired by the President, as the highest decision-making body for qualitymanagement, responsible for overall quality planning and major decision-making. The Quality Assurance Department, as theexecution body, is responsible for supervision of system operation and risk control, while each business division and subsidiaryassumes primary quality responsibility, forming a closed-loop quality management mechanism from decision-making to execution.

The Company has established a "dual-loop driven" model to deepen implementation of its quality strategy. In the internal loopof system management, adhering to the quality policy of "customer ?rst, company-wide quality participation, source control, andcontinuous improvement," the Company uses "system management" and "closed-loop resolution" as dual drivers. During productdesign and development, tools such as FMEA (Failure Mode and Effects Analysis) are introduced to achieve full life-cycle productmanagement. In the external loop of market environment management, the Company adopts advanced standards and continuouslypromotes innovation and improvement to ensure product quality and process stability. A policy early-warning mechanism has beenestablished, under which the Standards Committee regularly identifies global energy-efficiency regulations across countries andregions. Through the PLM (Product Lifecycle Management) system, rapid iteration of product parameters is achieved to ensure marketcompetitiveness.

The Company strictly complies with national laws and regulations, including the Regulations on Supervision and Administration ofIndustrial Product Manufacturers' Implementation of Primary Responsibility for Quality Safety. It has formulated internal systemsincluding the Quality Work Guidelines, the Quality Management System, the Quality Supervision and Management Standards, and theComprehensive Quality Risk Management and Control Measures. These systems clarify quality objectives, management principles, andsupervision mechanisms, and implement quality control throughout the entire product life cycle, including design, manufacturing,sales and other stages. The Company has formulated and decomposed annual quality targets, tracking and ensuring their e?ectiveful?llment on a monthly basis. It has implemented a quality risk management system covering emergency response and closed-looprecti?cation to strengthen quality risk prevention. The Company formulated the Procedure for Inspection and Testing to standardizethe processes of product quality inspection and testing. A high-standard quality control system spanning the entire value chain hasbeen formed, with testing capabilities accredited by CNAS, the Ministry of Industry and Information Technology Laboratories, andrecognized against standards such as CSA, BV, and ERP. The Company has also built a quality knowledge base, deepened its QualityMonth activities, and enhanced the professional skills of quality management personnel, thereby systematically elevating the overallquality management capability.

Types of Risk and

Opportunity

Risk and Opportunity Description

ImpactSeverity

ImpactTimeframe

Mitigation MeasuresPolicy andRegulatory Factors

Failure in government supervisionand inspection may result inreputational damage and ?nanciallosses at the corporate level.

HighShort term

The Company strengthens policytracking and research, promptlyobtains and analyzes latest regulatoryrequirements, and ensures productcompliance.Operational Risks

Insu?cient quality inspection duringproduction may lead to qualityincidents or customer complaints.

High

Medium toLong Term

The Company uses intelligent digitaltechnologies to realize automatedinspection of key production processesand has established a digital after-sales platform to respond promptly tocustomer quality concerns.

Policy andRegulatoryOpportunities

Government subsidies for trade-in replacement of householdappliances encourage consumerdemand.

High

Medium toLong Term

The Company develops new high-e?ciency, low-carbon, environmentallyfriendly products aligned with consumerpreferences to capture policy incentivesand expand market share.

Brand ValueOpportunity

High-quality products and excellentservices are converted into long-termcustomer loyalty, enhancing brandvalue and increasing corporatereturns.

MediumLong-term

The Company continuously provideshigh-quality products and serviceswhile strengthening brand promotionto improve brand in?uence.

Annual Quality Month activities organized by Zhongke MeilingChanghong Meiling Quality Salon – Quality Improvement Special

Sharing Session

ISO 9001 Quality Management System Certification

In 2025, the Company achieved: 100% product ex-factory qualification rate; CQC certification across the entire product portfolio;full completion of product- and service-related target tasks; no major accidents involving product and service safety and qualityhave occurred. There have been no administrative penalties, financial losses, or major reputational damage incidents.

3434

Management of Impacts, Risks, and Opportunities Related to Product and Service Safety and Quality

Governance Related to Product and Service Safety and Quality

Strategy Related to Product and Service Safety and Quality

Indicators and Targets Related to Product and Service Safety and Quality

Honors and Awards

Changhong Meiling was recognized by the ChinaAssociation for Quality Inspection as the "2025National ‘Quality Month' Quality Integrity Initiative

Enterprise"Changhong Meiling was recognized by the ChinaAssociation for Quality Inspection as the "NationalProduct and Service Quality Integrity Commitment

Enterprise"

Ensuring Compliance,Cultivating ResponsibleBusiness

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,

ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

The Company accurately responds to consumers' growing demands for enhanced interaction experience and personalizedfunctionality by integrating accessibility requirements throughout the entire process of product planning, design, manufacturing,and service. Continuous improvements include: optimization of product operation interfaces and functional settings; simpli?cationof control logic; enhancement of human–machine interaction interfaces; improved readability and comprehensibility of productinstructions. These measures lower usage barriers for users of di?erent age groups and varying levels of product experience, improvingsuitability for elderly users, ?rst-time purchasers, and family users.

The Company strictly complies with national laws and regulations such as the Law of the People's Republic of China on the Protection ofConsumer Rights and Interests and the Product Quality Law of the People's Republic of China. It has revised and issued core institutionalpolicies including the Quality Management Measures for Refrigeration and Washing Services, and established a standardized documentationsystem including the On-site Service Operation Standards and the Spare Parts Management Guidelines. Through Service OutsourcingAgreements signed with service providers containing strict quality clauses, the Company ensures consistent internal and external servicestandards. The Company has established specialized departments such as sales to be responsible for customer management. A nationwidegrid-based service network enables digital tracking and management of service nodes, standardizes service procedures, and facilitates full-scenario customer access through internet platforms.The Company has established a full-process after-sales service management system, covering rapid response through closed-loopimprovement. Based on the Customer Complaint Management Measures, a unified complaint collection and hierarchical processingplatform has been built, forming a standardized process of "response → assessment → resolution → improvement." The Company has alsolaunched the ISRM intelligent customer service system, powered by large-model AI and a localized knowledge base, signi?cantly improvingservice e?ciency and customer experience. In 2025, the after-sales service complaint resolution rate reached 100%.

The Company strictly complies with legal requirements including the Advertising Law of the People's Republic of China and the Anti-Unfair Competition Law of the People's Republic of China. It has formulated the Price Management Measures and established a PricingCommittee to conduct uni?ed supervision and control over product pricing and channel pricing, preventing price disorder and unfaircompetition. The Company has also established a strict review mechanism to ensure compliance examination of media publicity andpromotional information. Regular training and communication on responsible marketing are carried out, and the Company activelyparticipates in special compliance training and self-inspection programs for emerging business formats organized by regulatoryauthorities. In addition, the Company strictly implements a customer visit system, maintaining regular and e?ective communicationwith distribution channels and end customers, to ensure that all marketing activities are conducted on the basis of truthfulness,accuracy, and respect for consumers. The Company strictly prohibits dissemination of misleading information regarding competingproducts and avoids any exaggerated claims concerning environmental or social bene?ts.

The Company has established a multi-dimensional and normalized customer satisfaction survey system covering end users,distributors, and service providers. Through scientific data collection and analysis, the Company identifies service shortcomingsand potential customer needs, and continuously improves services based on real feedback, thereby enhancing overall customersatisfaction. In 2025, overall satisfaction of end users reached 97.95%; overall distributor satisfaction reached 98.06%; overall serviceprovider satisfaction reached 98.49%.Based on intelligent products across refrigerators, air conditioners,and washing machines, the Company designed a "three-capabilityintegrated care service" featuring conversational interaction,reminder functions, and emergency alarm functions. Elderly userscan operate appliances through voice commands. Home appliancesystems can provide scheduled reminders for daily activities. Inemergency situations such as falls, users can simply say "help mecall the police", enabling remote notification to family membersand activation of monitoring functions, thereby providingenhanced safety protection.

The Company has developed a "Triple Assurance" servicesuite for maternal and infants, encompassing "Worry-FreePlay, Effortless Control, and Safe & Restful Sleep." Parentscan remotely monitor their children via mobile devices andutilize cross-category smart controls—such as soothing acrying child through connected appliances or operating theair conditioner via voice commands that require no vocalresponse—to prevent startling sleeping infants and mitigatesafety risks from accidental contact.

Product Accessibility Enhancement

For Elderly UsersFor Maternal and Infant Users

Building Service Excellence

Customer Service Management

Responsible Marketing

Service Experience Enhancement

Changhong Meiling always adheres to a "user-centered" service philosophy and establishes a strategic orientation "focused oncustomer experience." Through standardized, digitalized, and human-oriented services, the Company deeply integrates responsiblemarketing, excellent customer experience, and data security governance, safeguarding consumer rights and continuouslystrengthening brand reputation.

The Company strictly adheres to the information security management principles of "appropriate security, focused protection, integration oftechnology and management, and zoning by area" and "prevention ?rst, graded accountability," systematically planning . It has establishedthe Information Security and Confidentiality Committee and the Information Security and Confidentiality Office, responsible forformulating the overall information security policies and strategic planning. The Company strictly complies with the Cybersecurity Lawof the People's Republic of China, the Data Security Law of the People's Republic of China, and other relevant laws and regulations,and has developed information security management systems, including the Information Security and Con?dentiality ManagementRegulations, the Computer Equipment Management Regulations, and the Key Business Information Systems and Master DataManagement Regulations. The Company has planned and constructed network security protection systems, including the industrialinternet security architecture, network and information security platforms, local cross-platform application-level disaster recoverysystems, and o?site disaster recovery systems for core data. Desktop terminal data security protection systems and cloud desktopmanagement controls have been deployed. Comprehensive technical measures, such as encryption, identity authentication, andaccess authorization, are applied to ensure the security and availability of classi?ed information throughout its full lifecycle. Employeetraining and confidentiality management are reinforced through confidentiality agreements and cybersecurity responsibilityagreements, enhancing employee security awareness and ensuring the safe and stable operation of information systems. In 2025, theCompany proactively completed the classi?cation and grading management of industrial internet enterprise cybersecurity as requiredby the Ministry of Industry and Information Technology and passed the MLPS 2.0 (Multi-Level Protection Scheme 2.0) assessment,ensuring that the security management system meets the highest national standards.The Company strictly observes the principles of "lawful, legitimate, and necessary" and "least privilege" in constructing a rigorouscustomer privacy protection management system in accordance with the Personal Information Protection Law of the People's Republicof China. The Company has improved its management mechanism by formulating systems including the Cybersecurity ManagementMeasures and the Notice on Regulating the Use of Confidentiality Markings for China Region Documents. It has incorporatedrequirements for data security and privacy protection into the performance appraisal system of relevant positions, and regularlyconducts data privacy and security training. Multiple technical measures such as data encryption, access control and regular auditinghave been adopted to implement full life-cycle data management in an all-round way, and the Company has conducted audit andmanagement over the entire process of critical data protection, including prior, during and subsequent stages, so as to prevent dataabuse or exposure during authorized access to sensitive data. Strict non-disclosure agreements have been signed with third partiesincluding suppliers and other business partners to ensure information security throughout its full life cycle. A three-tier emergencyresponse mechanism for customer privacy incidents has been established, de?ning responsibilities and handling procedures at alllevels. In the event of any information leakage risk, emergency procedures are immediately activated and accountability is strictlyenforced to ensure timely containment of any loss. In 2025, the Company strictly executed full-process controls, and no incidents ofcustomer privacy information leakage occurred throughout the year.

Data Security and Customer Privacy Protection

Changhong Meiling Builds Smart Living Scenarios for Elderly- and Child-Friendly Use

The Company has established a product recall system and incorporated recall management into its major quality issue control framework.According to the internal Regulations on Quality Issue Handling, once a major quality incident occurs, the Company immediately initiatesemergency response and recall procedures, formulates dedicated action plans, and rapidly implements corrective measures to protectconsumer rights and interests. In 2025, product quality remained stable, and no product recall events occurred.

Product Recall Management

Driving Green andLow-CarbonDevelopmentProtecting Our EcosystemChanghong Meiling remains committed to green development and activelyfulfills its corporate ecological responsibilities. The Company focuses on fourkey areas: climate change response, environmental compliance management,resource circularity, and green production operations. Through continuousoptimization of environmental practices across the entire operational chain,Changhong Meiling promotes the harmonious coexistence of corporatedevelopment and ecological protection. By taking practical actions, theCompany ful?lls its sustainability mission and safeguards a healthy ecologicalenvironment.

3938

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Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors'

ESG Statement

About ChanghongMeiling

ESGManagement

Changhong Meiling has established a climate governance structure centered on the Dual Carbon Management Committee. TheCommittee is chaired by the Company President, the Dual Carbon Working Group is responsible for project evaluation and incentivemechanisms, and each Company department is responsible for the implementation of dual carbon projects. This ensures that carbonreduction measures are embedded at all levels of operations and continuously enhances the Company's dual carbon governancecapacity.

The Company refers to the climate scenario models in the Intergovernmental Panel on Climate Change Sixth Assessment Report (AR6)and, in combination with changes in the external ecological, economic, and social operating environment, selected the SSP5-8.5 andSSP1-2.6 pathways to conduct climate scenario analysis. A standardized process has been established covering: determining the scopeof climate-related scenario analysis; selecting climate-related scenarios; identifying variables used in scenario analysis; determininganalytical methodologies; conducting climate-related scenario analysis. Through this process, the Company identifies potentialbusiness risks and opportunities, formulates climate response strategies, and ensures that operations remain aligned with the globalclimate transition.

Combat with Climate Change

Climate-Related Governance

Climate-Related StrategyClimate Scenario Analysis and Adaptation Assessment

Changhong Meiling attaches great importance to climate change response and has established a systematic, all-dimensional climateresponse framework. The Company coordinates the implementation of dual-carbon initiatives, continuously enhances climate riskmanagement and low-carbon development capabilities, and steadily advances its transition toward a green and low-carbon operatingmodel.

Changhong Meiling Climate Governance Structure

ScenarioReferenceTemperature RangeDescriptionHigh-Emission

Scenario

IPCC Shared SocioeconomicPathway SSP5-8.5

>4°C above pre-industrial levels

A fossil fuel-driven rapid development pathwayrelying on traditional energy expansion tosupport high economic growth, with ine?ectiveclimate governance, resulting in a high-emissionscenario with signi?cant warming.Low-Emission

Scenario

IPCC Shared SocioeconomicPathway SSP1-2.6

<2°C above pre-industrial levels

A sustainable green development pathway,achieving a low-carbon future by controllingtemperature rise within 2°C through inclusivegrowth, clean energy transition, and global deepcooperation.

Detailed Climate Governance Responsibilities

Dual Carbon Management Committee

Dual Carbon Management O?ceDual Carbon Working GroupCompany DepartmentsDaily Management and Promotionof Dual Carbon ProjectsResearch on Low-Carbon BasicTechnologies

Dual CarbonManagement

CommitteeDual CarbonWorking Group

Dual CarbonManagement O?ceCompanyDepartments

Formulates the Company's dual-carbon targets and implementation plans. Provides guidanceand resources to support the Working Group's progress. Supervises and evaluates theadvancement of dual-carbon initiatives and makes decisions on critical matters.Develops assessment plans for dual-carbon projects and establishes corresponding incentiveand penalty mechanisms. Coordinates carbon emission management across departments,sets departmental reduction targets and plans, promotes the implementation of carbonreduction projects and the adoption of carbon reduction technologies. Reports regularly tothe Management Committee on project progress.Oversees the full lifecycle management of dual-carbon projects, including planning, schedulecontrol, and quality management. Organizes coordination among relevant departments.Assists in supervising the progress of dual carbon work, evaluates project implementatione?ectiveness, and reports regularly to the Management Committee.Strictly implement assigned responsibilities and execute dual carbon projects at theoperational level.

Chairman's

Message

Board of Directors'

ESG Statement

About ChanghongMeiling

ESGManagement

R&D DepartmentProduction DepartmentSupply ChainMarketing DepartmentLogistics and Transportation

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, RenewingBetter Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendixChairman's

Address

Board of Directors'

ESG Statement

About ChanghongMeiling

ESGManagement

Risk TypeRisksRisk DescriptionFinancial ImpactImpact TimeframeImpact SeverityMitigation Measures

Physical risks

Risk of rising extreme weather severity

Extreme weather events such as typhoons and heavy rainfall maydamage infrastructure at multiple production bases, causing productionstoppages and logistics interruptions, a?ecting operational continuity.

Increased infrastructure repair costs;production downtime and logistics disruptionsdirectly reduce revenue.

Short to mediumterm

Medium

Plan production and transportation based onweather early warnings, develop emergencyresponse plans, and conduct drills.Risk of rising average temperature

Continuous global temperature rise may a?ect outdoor productionoperations and increase the di?culty of adapting operations toenvironmental conditions.

Increased energy consumption duringproduction, raising overall operational costs.

Long-termLow

Implement heat stress prevention and coolingmeasures, and avoid outdoor operations duringperiods of extreme heat.Persistent drought risk

High water-risk levels at key production bases; prolonged drought maycause water shortages for production, directly a?ecting productionstability.

Costs increase due to backup water sourceconstruction and water-saving retro?ts;unstable production a?ects revenue.

Medium termMedium

Promote water-saving measures, replaceequipment with water-e?cient alternatives,and establish emergency water storage tanks tosecure water supply for production.

Transfor-mation risks

Policy and legal risks for overseas products

Overseas carbon tariffs and carbon footprint regulations may increasecompliance difficulty for international operations.

Increased compliance costs related to carbontari?s and carbon footprint.

Medium to LongTerm

Medium

Monitor carbon-related regulations, expandcarbon footprint certi?cation, and advance thedevelopment of high-energy-e?ciency products.Mandatory regulatory requirements for existing

products and services

Pose compliance challenges to the Company's existing product portfolio,compelling a comprehensive upgrade and transformation of bothproducts and production lines.

Signi?cant increases in high-e?ciencytechnology R&D and production line retro?tcosts.

Medium termHigh

Increase investment in high-energy-e?ciencytechnology R&D and production line upgrades,and apply for policy subsidies and tax incentives.Low-carbon technology R&D risk

Uncertainty in low-carbon technology transition; failed R&D or delayedimplementation may cause loss of product competitiveness.

Increased costs for R&D, decommissioning oldequipment, and deploying new equipment.

Medium to LongTerm

High

Conduct preliminary technology research tooptimize R&D pathways and increase applicationsfor low-carbon technology patents.Changes in consumer behavior

Rising demand, if not met in a timely manner, may cause products to fallout of market preference.

Mismatch with market demand may directlyimpact revenue.

Medium to LongTerm

High

Adjust the product and service portfolio to alignwith customer preferences and meet demand forgreen consumption.Risks associated with low-carbon raw materials

Requirements for low-carbon materials increase supply chain selectionand adaptation di?culty.

Higher procurement costs for low-carbonmaterials compared to conventional materials,raising production costs and reducing pro?tmargins.

Medium to LongTerm

Medium

Optimize the supply chain, enter into long-termprocurement agreements, and explore low-cost,low-carbon alternative materials.Reputational risks raised by stakeholders

Underperformance in addressing expectations may trigger negativeexternal evaluation, harming brand image.

Potential revenue decline, brand value loss,and higher ?nancing costs.

Short, Mediumand Long Term

Medium

Establish stakeholder communicationmechanisms, improve the quality of ESGdisclosure, and strengthen green branding andcommunication.

Opportunity TypeOpportunityOpportunity descriptionFinancial Impact

ImpactTimeframe

ImpactSeverity

Mitigation MeasuresTechnological

innovationopportunities

Opportunities for breakthroughs in core low-

carbon home appliance technologies

Driven by global climate transition needs, the Company candevelop key core low-carbon and environmentally friendlytechnologies, such as heat pump technology, break throughindustry technical bottlenecks, and build di?erentiated competitiveadvantages.

Enhance the premium pricing capacity of low carbon products,driving sales growth of high value-added products, andimproving the Company's pro?tability.

Medium to Long

Term

High

Increase investment in low-carbontechnology R&D, establish dedicatedR&D teams, and strengthen patentdeployment.Market expansionopportunities

Opportunities for scenario-based deployment

of green home appliances

In line with China's dual carbon policy orientation and globalclimate governance trends, launch one-stop green homeappliance solutions for diverse scenarios, including household andcommercial settings.

Explore new business avenues such asgovernment-enterprise procurement and overseas lowcarbon markets, fostering new revenue growth drivers.

Medium to LongTerm

Medium

Optimize the green home applianceproduct portfolio, develop scenario-based solutions, and strengthen thepromotion of the green brand.

Note: Short term refers to within one year (inclusive) after the end of the Company's sustainability reporting period; medium term refers to one tofive years (inclusive) after the end of the Company's sustainability reporting period; and long term refers to more than five years after the end of theCompany's sustainability reporting period.

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Climate-related Risks and Opportunities

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendixChairman's

Message

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

Changhong Meiling has established a systematic and science-based process for managing climate-related impacts, risks and opportunities, togetherwith a decarbonization pathway, to ensure that the Company's strategic planning and production and operations are e?ectively aligned with climatechange, enabling it to respond proactively to challenges and capture development opportunities.

Changhong Meiling has set carbon emission targets to achieve carbon peak for its own operations by 2030 and carbon neutrality for its ownoperations by 2060. To ensure the achievement of these long-term goals, the Company has also established detailed annual interim emissiontargets, regularly reviews and tracks progress on climate goals, reduces carbon emission intensity year by year, and steadily advances emissionreduction plans through measures such as energy-saving equipment retro?ts, optimized production processes, development of low-carbonproducts, promotion of clean energy, and participation in green electricity trading.In 2025, the Company implemented decarbonization measures across multiple dimensions. From product design to supply chain, fromproduction lines to o?ce operations, energy-saving and carbon-reduction projects were comprehensively deployed. Particularly in equipmentupgrades, the Company achieved notable results: the successful deployment of new energy-efficient equipment, including air-sourcetemperature control machines, variable-frequency screw pumps, and variable-frequency motors, signi?cantly reduced energy consumptionduring production and achieved dual breakthroughs in energy saving and carbon reduction. These solid practices not only optimized resourceutilization efficiency through technological innovation but also further strengthened the Company's foundation for green development,e?ectively advancing its transition toward a green and low-carbon operating model.

Management Process

Decarbonization Pathway

Climate-Related Impact, Risk and Opportunity Management

Climate-Related Indicators and Targets

Independent Third-Party Veri?cation

How the Target Is AchievedFor intensity targets, provide a description ofthe method used to calculate carbon intensityFor Scope 3 targets, provide a description ofthe method used to calculate Scope 3 emissionscovered by the target

Not yet veri?ed by an independent third party. The Companyintends to consider veri?cation through Science Based Targetsinitiative (SBTi) or other third-party organizations.Refer to climate-related impacts, risks and opportunitiesmanagement/carbon reduction pathway.Per RMB million of output value

No Scope 3 emission targets have been established todate

Review the Company's business activities, business linkages, and external developmentenvironment to identify stakeholders a?ected by climate change and their relevant concerns.Conduct analysis based on the dual climate scenarios of SSP5-8.5 and SSP1-2.6 to identifyclimate-related impacts, risks and opportunities under di?erent scenarios, and assess the gapbetween climate-related targets and the current state of operations.

The dual carbon management committee regularly monitors the performance of key risk indicatorsand reports major climate-related risk matters to the Board of Directors on an annual basis.Regularly disclose externally the identi?cation of climate-related risks and opportunities and theimplementation of full-process management.

Continue to advanceR&D and innovationin energy-savingtechnologies,promote the iterativedevelopment of low-carbon materials,and comprehensivelyexpand the use oflow-carbon andenvironmentallyfriendly packaging.

Implement energy-savingretro?ts of productionequipment to reduceconsumption and improvee?ciency, deepen the leanproduction model to enhanceend-to-end operationale?ciency, and establish andimprove a re?ned energymanagement system coveringall stages of production.

Build an enterprise-level intelligent carbonemissions managementplatform and implementa product lifecycle carbonfootprint accountingplatform to enable carbondata to be monitored,measured and managed.

Work with upstream anddownstream supply chainpartners to carry outjoint R&D on low-carbonmaterials and low-carbontechnologies, promotethe implementation andapplication of low-carbontechnological achievements,and build a low-carbondevelopment ecosystemacross the supply chain.

Steadily advance thescaled applicationof purchased greenelectricity, deployphotovoltaic powergeneration systems toachieve self-supply ofgreen electricity, andincrease the proportionof green energy inproduction.

Carry out a comprehensive assessment of identi?ed climate-related risks and rank them by levelof impact.Relevant responsible departments carry out targeted risk management, formulate dedicatedresponse plans, and submit them to the dual carbon management committee for review.

①Background analysis of

the subject matter

② Identi?cation of risks

and opportunities

⑤ Dynamic monitoring

and management

⑥ Information disclosure

and reporting

③ Risk assessment and

prioritization

④ Formulation of response

measures

Target Information

Target Method

① Product

technology

② Production and

manufacturing

③ Carbon management

and control system

⑤ Supply chain system

④ Green energy

Scope covered

Scope 1 and Scope 2Mainly includes natural gas, purchased electricity, and purchased steamDirect emissions from diesel, wastewater treatment, ?re extinguishing agents, and air-conditioning

refrigerants are minor and not included in calculationsFor Scope 2 emissions, the market-based method is appliedApplicable Entity Scope

Includes refrigerator, freezer, washing machine produced at the Hefei base, as well as those from

Mianyang Meiling and Jiangxi Meiling.

Target TypeQuantitative target\Intensity target

Base Year

6.176 tCO

e per RMB million of output value

Target Year

5.106 tCO

e per RMB million of output value, representing a 17.32% reduction in greenhouse gas

emissions per RMB million of output value

Reduction Target as % of Base

Year (%)

100%Reduction Target as % ofCurrent Year (%)

100%Current Period Emissions

GHG emissions per million yuan of output value stood at 5.106 tCO

e, representing a year-on-yeardecrease of 17.32%

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Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendixChairman's

Message

Board of Directors' ESG Statement

About Changhong

Meiling

ESGManagement

Annual Greenhouse Gas Emissions

Note 1: Data cover Changhong Meiling headquarters, Mianyang Meiling, and Jiangxi Meiling.Note 2: The year-on-year increase in direct GHG emissions (Scope 1) is due to approximatelya 31% increase in washing machine production and the impact of in-house componentrecycling, resulting in higher natural gas consumption.Note 3: Greenhouse gases primarily include Scope 1 and Scope 2 emissions, i.e., naturalgas, purchased electricity, and purchased steam. (Direct emissions from diesel, wastewatertreatment, fire extinguishing agents, and air-conditioning refrigerants are minor and notincluded in calculations.)Note 4: In 2025, Hefei facilities procured 41 million kWh of green electricity, accounting forapproximately 36.80% of total electricity consumption in Hefei base.Note 5: The 2025 emission factors adopted are 0.5568 kgCO

e/kWh for electricity, 110kgCO

e/GT for steam, and 1.8222 kgCO

e/m? for natural gas.

Upholding the principles of green development, Changhong Meiling strictly complies with the Environmental Protection Law of thePeople's Republic of China, the Cleaner Production Promotion Law of the People's Republic of China, and other relevant laws and

Changhong Meiling strictly complies with the Emergency Response Law of the People's Republic of China and the National EmergencyResponse Plan for Environmental Emergencies, establishing an emergency management system centered on the “one plan with threesupporting mechanisms" approach. According to internal environmental incident classi?cation standards, the Company has set up anEmergency Command Headquarters for Environmental Emergencies led by the Company President. Specialized emergency teams aredeployed for on-site response, emergency monitoring, logistics support, and information dissemination. The Company has preparedcomprehensive plans, including the Comprehensive Emergency Response Plan for Environmental Emergencies, and establishedpreventive measures covering hazard identi?cation and inspection, emergency facility readiness, and emergency drills, ensuring timelyand e?ective response throughout the entire process.

Environmental risks andopportunities are systematicallyidenti?ed through multiplechannels, including regulatoryscanning, lifecycle assessment,on-site inspections, supplychain audits, and stakeholderinterviews.

The “Resilient Supply Chain" GreenPartner Program is implemented,incorporating environmental complianceand carbon footprint performance intosupplier admission and rating criteria.The program coordinates with upstreampartners to address environmental risksand identify opportunities for greeninnovation.

A quantitative “Environmental RiskMap" is used to assess risks from threedimensions: probability, impact, andcontrol effectiveness. High-risk points,such as chemical storage facilities, aresubject to enhanced controls includingdual-lock and dual-person protocols,real-time monitoring, and regularemergency drills.

Environmental Compliance Management

Environment Management System

Environmental Risk Assessment and Response

Risk andOpportunityIdenti?c-ation

Risk andOpportunityIdenti?c-ationRiskAssessmentand Control

Guided by green development, Changhong Meiling adheres to environmental compliance standards, establishing a systematic, full-process environmental compliance management system. The Company strengthens risk prevention and pollution control capabilities,continuously improves the standardization and refinement of environmental management, and actively fulfills its corporateenvironmental responsibilities.

Environmental Management System

Certification

Green Electricity Certificate Transaction Vouchers

Direct GHG emissions (Scope 1)

tCO

e

Total Carbon emissions per RMB million

of output valuetCO

e/RMB million output value

Indirect GHG emissions (Scope 2)

tCO

e2024

2024

2024

710.36

6.18

62,486.27

905.21

5.11

53,966.44

2025

2025

2025

+27.43%

-17.32%

-13.63%

Total carbon emissions

tCO

e2024

63,196.63

54,871.65

2025

-13.17%

Environmental Risk Assessment Management Process

regulations. The Company has established a three-tier environmental managementsystem, with the Board of Directors as the decision-making tier, the EnvironmentalManagement Committee as the management tier, and the Environmental ProtectionDepartment and environmental officers in each production unit as the execution tier.The Company has also developed management systems, including the EnvironmentalManagement Manual, Environmental Compliance Evaluation Control Procedure, andInternal Environmental Reporting and Disclosure System, continuously enhancingenvironmental management and ensuring that institutional frameworks and operationalguidance cover all aspects of operations. In 2025, the Company's total environmentalprotection investment amounted to RMB 10.3209 million. The Company and its sevenmanufacturing subsidiaries have all obtained ISO 14001 Environmental ManagementSystem certification. No major environmental incidents, regulatory violations, orenvironmental crimes (criminally punishable) occurred during the reporting period.

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Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendixChairman's

Message

Board of Directors'

ESG Statement

About ChanghongMeiling

ESGManagement

Changhong Meiling conducts tiered environmental protection training. Environmental management personnel receive in-depthinterpretations of the latest environmental laws and regulations, while frontline employees participate in practical training on the“Position-Specific Environmental Protection Code." The Company also organizes environmental awareness activities, such as“World Environment Day (June 5)" and “Open Day events," inviting employees' family members to visit factory environmentalfacilities, create environmental-themed artwork, and participate in the “Green Ideas" initiative to collect employee suggestions,thereby enhancing environmental awareness. In 2025, Changhong Meiling conducted tiered training: management personnelreceived in-depth briefings on the latest regulations, and frontline employees participated in practical training on the “Position-Specific Environmental Protection Code." More than 3,000 people participated in training sessions throughout the year. Throughtheir involvement in training, employees not only contributed ideas for waste reduction, classification, and other green initiativesbut also achieved an 85% participation rate in 2025, significantly boosting environmental awareness across the workforce.

The Company has established an Environmental Management Committee, chaired by the President, with the responsible VicePresidents and relevant department heads as members. A dedicated Environmental Protection Office is established under theCommittee, with comprehensive authority to oversee, guide, and evaluate all daily environmental protection activities, as well as themanagement of pollution emissions including wastewater, waste gas, solid waste, noise and other pollutants. The Company strictlycomplies with the Environmental Protection Law of the People's Republic of China, the Air Pollution Prevention and Control Law ofthe People's Republic of China, the Water Pollution Prevention and Control Law of the People's Republic of China, and other relevantenvironmental laws, regulations, and rules. Core pollution prevention systems, including the Environmental Protection ManagementSystem and Pollutant Emission Control Procedure, have been established to create a standardized environmental managementframework. A three-tier reporting system (“Workshop–Department–Company") is implemented, requiring any abnormalenvironmental data to be reported directly to the Environmental Management Committee within one hour. Environmental protectionindicators are incorporated into the quarterly safety and environmental performance assessments.

The Company de?nes environmental risk levels and corresponding management processes, accurately identifying potential environmentalrisks and opportunities. Additionally, scenario analysis is applied to evaluate the uncertainty of environmental pollution risks, assisting theCompany in responding to potential future environmental changes and enhancing overall risk management capability.The Company conducts full-process identi?cation, assessment, prioritization, monitoring, and management of pollutant emissions impacts,risks, and opportunities. Each year, multiple methods are used to systematically identify emissions of wastewater, exhaust gas, solid waste(including hazardous waste), and noise across all operational stages. Potential environmental risks and green development opportunities aresimultaneously evaluated. A combination of quantitative and qualitative analyses is used for multi-dimensional prioritization, with the gradedcontrol list dynamically updated. For key emission sources and risk points, continuous monitoring mechanisms are established to enforceenvironmental management requirements and ensure e?ective system operation.

The Company prepared Risk Assessment Reports for Environmental Emergencies and applies process analysis, statistical methods,and surveys to monitor and analyze environmental pollution factors, providing a solid scienti?c basis for the Company's green andsustainable development strategies.

Environmental Protection Training

Strengthening Pollution Prevention and Control

Optimized Management Process

Types of Risk and

Opportunity

Risk and Opportunity Description

ImpactSeverity

ImpactTimeframe

Mitigation MeasuresWastewaterManagementRisks

Failure to regularly clean wastewatersystems, improper facility operation,incorrect chemical dosing, or untimelywater quality monitoring may result innon-compliant wastewater discharge.

High

Mediumterm

Conduct regular wastewater cleaning, clearly de?neprocedures for handling anomalies at wastewatertreatment plants, establish chemical dosing recordsand veri?cation systems, and implement timelywater quality monitoring and comparative checksaccording to schedule and regulatory requirements.Exhaust GasManagementRisks

Non-compliance in kitchen exhausttreatment, facility malfunctions orinsu?cient maintenance, and improperlysealed waste paint or adhesivecontainers may cause exhaust gas toexceed standards.

HighShort term

Perform routine maintenance of air treatmentfacilities, conduct exhaust system inspections,and implement source-level emission reductionand control measures.

Solid WasteManagementRisks

Improper storage or disposal, insu?cientsta? training, or use of unquali?edhazardous waste disposal contractors maycause pollution incidents.Chemical containers may be returned tosuppliers for recycling, thereby reducing thevolume of hazardous waste disposal.

High

Short tomedium

term

Store general solid waste outdoors in enclosedareas as required, provide employee training onwaste management, engage certi?ed disposalcontractors, and implement waste reduction andcontrol plans.The production department shall centrally collectrecyclable materials (chemical containers), and theprocurement department shall arrange for theirperiodic return to suppliers for recycling.

Types of Risk and

Opportunity

Risk and Opportunity Description

ImpactSeverity

ImpactTimeframe

Mitigation MeasuresNoise Control

Risks

Excessive noise emissions fromproduction equipment may lead tocomplaints from surrounding residentsand environmental regulatory penalties.

High

Short tomedium

term

Install sound insulation on productionequipment, workshop doors and windows,and other high-noise sources.

Opportunities

in PollutionPrevention

Implementing high-standard pollutionprevention measures enhances theCompany's green development image,helps secure policy incentives, andimproves market recognition.

Medium

Medium toLong Term

Strictly implementing pollution prevention andcontrol policies, completing environmentalfacility upgrades, and establishing an industrybenchmark for environmental protection.

Environmental Risk Grading and Flowchart Illustration

Enterprise Basic Situation Survey and Analysis

Calculate the ratio (Q) of the quantity of air (or water) risksubstances to their critical threshold

Risk level for sudden atmospheric (or water) environmental incidentEnterprise's risk level for sudden environmental incidentsGeneralEnvironmental Risk

Signi?cantEnvironmental Risk

MajorEnvironmental Risk

Production process andlevel of risk control foratmospheric (or Water)environment (M)

Ratio of air (or water)risk substance quantityto its critical threshold(Q)

Sensitivity of receptorsto atmospheric (orwater) environmentalrisk (E)

Q<1

Q≥1

Governance Related to Pollution Prevention and Control

Impacts, Risks, and Opportunity Management Related to Pollution Prevention and Control

Strategy Related to Pollution Prevention and Control

5051

Ensuring Compliance,Cultivating ResponsibleBusiness

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors' ESG Statement

About Changhong

Meiling

ESGManagement

The Company's wastewater mainly includes production and domestic wastewater and adopts a rain-sewage separation system.After treatment, key parameters—suspended solids, chemical oxygen demand (COD), ammonia nitrogen, petroleum substances,biochemical oxygen demand (BOD), and pH—meet discharge standards. The Company has upgraded certain aged pipelines withinthe industrial park to enhance network reliability and optimized the operation of the comprehensive wastewater treatment station tocontinuously improve wastewater treatment e?ciency.The Company's exhaust gas primarily originate from organized and unorganized volatile organic compounds (VOCs) in productionprocesses, boiler combustion exhaust, and crushed particulate matter, among other sources. During the reporting period, theCompany established its own monitoring plan, defining monitoring requirements and commissioning qualified external agenciesto test organized emissions. All monitored air pollutants met regulatory emission standards. Additionally, the Company upgradedorganic exhaust treatment facilities for washing machines, optimized treatment processes to improve removal e?ciency, strengthenedunorganized emissions control, including implementing air recovery and treatment in relevant areas. Some forklifts meeting ChinaNational Stage II standards were retired, and fuel-powered forklifts were replaced with electric forklifts, enhancing end-of-pipe exhaustcontrol and reducing tailpipe pollution. Specialized training on exhaust gas management was conducted for personnel, coveringequipment operation, maintenance, safety, and environmental regulations to enhance professional capabilities.The Company prioritizes noise management and implements multiple measures to reduce noise pollution. Noise-reducing enclosuresare installed on major noise-generating equipment such as air compressors, fans, and pumps. Noise-reduction green belts are plantedalong factory walls and around sensitive areas. In addition, the Company adjusts the timing of certain high-noise operations andstrengthens transport vehicle noise management. During the reporting period, factory boundary noise (day/night) complied with theEmission Standard for Industrial Enterprises' Environmental Noise at the Boundary.The Company strictly complies with the Law of the People's Republic of China on the Prevention and Control of EnvironmentalPollution by Solid Waste and the National Catalogue of Hazardous Wastes, implementing classi?cation and management of generaland hazardous waste generated during operations. Dedicated storage areas are designated for solid waste, with clear labeling inplace. Regular reporting, ledger maintenance, and standardized transfer procedures are conducted in accordance with regulatoryrequirements. New sludge drying machines have been installed to reduce sludge generation. Hazardous waste management followsinternal regulations, including the Solid Waste Classi?cation and Disposal Management Regulations and Hazardous Waste EmergencyResponse Plan, through which the Company develops specialized plans, maintains management ledgers, and implements cleartemporary storage signage. Digital tools are utilized to enable real-time, full-process monitoring. Emergency disposal procedures areformulated to prevent leakage risks. Additionally, the Company cooperates with third-party institutions that hold appropriate disposalquali?cations, which perform periodic on-site collection and standardized disposal.

Waste cardboard, scrap copper,scrap metal

Domestic waste, protectiveequipmentSpent activated carbon, usedoily rags, waste mineral oil,empty paint cans, waste filtercotton, used black materialbarrels, etc.

Sorted and delivered to quali?ed recycling vendors

Sent to quali?ed vendors for incineration; hazardouscomponents are decomposed into harmlesssubstances

Sent to qualified disposal vendors for landfill orincineration

Waste Water Management

Exhaust Gas Management

Noise Control

Waste Management

The Company has installed new adhesive-dispensing machineenvironmental protection facilities, upgrading from uncontrolled gasemissions to collected and treated emissions

A newly purchased sludge drying machine has been deployed toreduce sludge volume

In 2025, Changhong Meiling fully achieved the government-mandated annual total pollutant control targets for COD, ammonianitrogen, and VOCs. Emission concentrations from all pollution sources remained consistently better than national and local dischargestandards. Factory boundary noise compliance rates reached 100%, and monitored noise levels at sensitive points met functionalarea requirements. The lawful disposal rate of hazardous waste and general industrial solid waste reached 100%, successfully ful?llingthe annual compliance target for solid waste management. No major environmental pollution incidents, mass incidents related toenvironmental issues, environmental penalties, complaints, or illegal dumping events occurred throughout the year.From 2026 to 2028,the Company plans to benchmark against stricter international and domestic standards or state-of-the-artfeasible technologies. Speci?c measures include consolidating multiple exhaust stacks in certain areas and adopting zeolite rotarywheel technology to further improve exhaust gas puri?cation. Promoting sludge drying technology will serve as a key focus, with agradual reduction in sludge generation as the core measure to achieve the "zero land?ll" waste management goal and reduce wastegeneration.

General Waste

(Recyclable)

General Waste

(Non-Recycl

-able)

Hazardous

Waste

The Company has established an Energy Management Leading Group, under which the Office for Energy Saving and EmissionReduction operates. Key personnel from each department and workshop participate to ensure multi-level control. Energy-relatedlaws, industry standards, and local regulations are regularly collected and updated. The Energy Management Regulations are compiledand revised as needed. Annual energy compliance evaluations and performance assessments are conducted, with clear focus oncontrolling major energy-consuming equipment, improving energy data collection and analysis, and implementing energy-savingprocess upgrades. In 2025, the Company obtained Energy Management System certi?cation.

Resource Recycling

Strengthening Energy Utilization

Upholding the concept of circular development, Changhong Meiling continues to focus on e?cient resource utilization and circular valuecreation. The Company integrates green and low-carbon principles throughout resource management processes, practicing energy saving,emission reduction, and symbiotic circularity. This demonstrates its commitment and responsibility toward sustainable development.

Treatments / Disposal MethodsMain Waste ItemsTypes of Waste

Indicators and Targets Related to Pollution Prevention and Control

Governance Related to Energy Utilization

5253

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,

ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

The Company follows the energy management philosophy of “empowerment, stimulating internal potential, maximizing e?ciency,and continuous cost reduction." Comprehensive and feasible energy management plans and implementation measures aredeveloped. Each business unit is encouraged to fully leverage policy-based incentives and reform bene?ts, exploring energy-savingpotential through management optimization, process improvements, and technological upgrades to continuously improve energye?ciency.

Changhong Meiling attaches great importance to managing energy-related impacts, risks, and opportunities. The Company conductsdetailed analyses of speci?c energy-consuming processes, operations, and equipment to identify risks and potential energy-savingopportunities. Key energy-intensive equipment and their energy e?ciency factors are reviewed. Opportunities for energy performanceimprovement are determined based on technical feasibility, economic feasibility, and potential adverse impacts (safety, quality,environment). Corresponding control measures and targets are developed, with continuous monitoring of implementation ande?ectiveness.The Company systematically identifies and manages risks and opportunities in the field of energy management. Specific energy-consuming processes and equipment are analyzed to identify risks and energy-saving opportunities. Key energy-intensive equipmentand energy e?ciency factors are reviewed. Multidimensional analyses are used to determine performance improvement opportunities,control measures and targets are established, and implementation results are tracked to optimize energy management.The Company's production and operations primarily consume purchased electricity, gasoline, diesel, natural gas, steam, andrenewable energy. During the reporting period, the Company monitored similar energy-consuming equipment, calculatedrelevant parameters, and plotted energy consumption curves. Through benchmarking analysis, e?ciency gaps were identi?ed andcorresponding improvement measures determined.

The Company continuously optimizes its energy structure and actively introduces renewable energy. The types of clean energy utilizedmainly include rooftop photovoltaic systems and purchased green electricity. Distributed rooftop photovoltaic power stations wereinstalled on the roofs of multiple buildings in o?ce and residential areas, adopting a “self-consumption with surplus electricity fedinto the grid" approach. At the same time, green electricity is procured on a large scale, with a signi?cant proportion of total electricityconsumption supplied by green energy, advancing practical green and low-carbon development. In 2025, the distributed rooftopPV systems at Changhong Meiling generated 680,000 kWh, effectively supplementing the industrial park's electricity demand. Thecompany purchased a total of 47,970,200 kWh of green electricity.Note 1: Annual generation data for the distributed rooftop PV systems are calculated for Changhong Meiling headquarters.Note 2: The statistical scope of the total green electricity purchased covers Changhong Meiling, Hefei Industrial, Hongmei Intelligent, Jiangxi Meiling,Mianyang Meiling, Changmei Living Appliances, Ridian Technology, Zhongke Meiling, Zhongshan Changhong and Changhong Air Conditioner.

Energy Performance Improvement

Energy Usage Monitoring

Use Clean Energy

DepartmentCategoryReduction Ratio of Standard Unit Consumption in Jan–Feb 2026 Compared to Jan–Feb 2025Two Key Energy-

ConsumingEquipment Types

Electricity4.34%Natural gas15.67%

Pray Coating

Electricity7.18%Natural gas0.40%

Changhong Meiling conducts in-depth analyses of energy consumption characteristics across the entire production and manufacturingprocess. Energy-saving retrofits are implemented through optimization of production processes and improvements in equipmentoperating e?ciency, e?ectively reducing energy consumption during production.Energy-Saving Retro?t

Zhongshan Changhong Energy-Saving Technical Retro?t Performance

The Company's manufacturing plants commissioned air-source moldtemperature units to replace traditional models, achieving electricity savingsThe Company has obtained ISO 50001:2018 Energy

Management System certification

Strategies Related to Energy Utilization

Impact, Risk, and Opportunity Management Related to Energy Utilization

Types of Risk and

Opportunity

Risk and Opportunity Description

ImpactSeverity

ImpactTimeframe

Mitigation MeasuresPolicy andRegulatory Risk

Tighter energy and carbon emissionpolicies may result in compliance risks,production restrictions, and increasedcosts.

Medium

Medium toLong Term

The Company mitigates these risksby strengthening research on energymanagement policies and optimizing itsenergy mix in advance.Operational Risks

Low energy management e?ciency,aging equipment, and energy pricevolatility may increase operationalcosts.

High

Medium toLong Term

Regularly maintain and upgradeequipment and introduce intelligentenergy management systems to reduceenergy consumption.

Policy andRegulatoryOpportunities

Government-issued energy-savingsubsidies, tax incentives, and green?nance support policies facilitate theCompany's low-carbon transition.

High

Medium toLong Term

Monitor government energy-relatedtax reduction and subsidy policies, andleverage green ?nancial instruments tolower ?nancing costs.

Opportunitiesfrom ExternallySupplied Energy

Optimize the energy structure andreduce costs through externallypurchased centralized energy, andexpand revenue opportunities byleveraging externally supplied energy.

High

Medium toLong Term

All costs for externally supplied energymust be fully accounted for to ensure abalanced energy consumption budget.

Brand ValueOpportunity

The transition to green energy canenhance the Company's social image,strengthen investor con?dence, andsupport sustainable development.

MediumLong-term

The Company strengthens greenbranding, regularly disclosessustainability reports, and enhancescorporate reputation.

5455

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,

ConnectingBetter Lives

FutureProspectsAppendixChairman's

Message

Board of Directors' ESG Statement

About Changhong

Meiling

ESGManagement

Acquisition of variable frequency aircompressors, resulting in significantenergy savings and e?ective reductionof energy waste.

Injection molding machine energy-savingproject: the original ceramic heatingmethod was replaced with infraredheating, saving approximately 40% of theheating energy, with a monthly energy costreduction of RMB 77,455 year-on-year.

Adoption of enhanced vacuuminsulation and black ceramicheaters with plate-penetratinglight waves, effectively reducingenergy consumption and improvingequipment operating e?ciency.

Helium Inspection Line 1 (internal)

Replacement of the old D7 steam line with the new D5steam line on Line 6

Helium Inspection Line 2 (external)

Replacement of the old D7 steam line with the new D7steam line on Line 8

Changhong Air Conditioner participated in the “Trade-In for NewAppliances" initiative

In 2025, the Company saved RMB 3.129 million in energy costs, achieving its energy management-related performance targets.

Note 1: The above energy management improvement targets primarily apply to the production and manufacturing systems, Quality AssuranceDepartment, and Administration Department.

Packaging material procurement savings and resource recovery revenue are reported on the basis of Changhong Meiling headquarters.

From 2025 to 2027, the Company's energy management plan aims to achieve cumulative energy cost savings of RMB 9 million. Toensure the realization of this target, the Company plans to develop annual energy management plans, establish a comprehensiveenergy management platform, regularly monitor the progress of energy-saving targets, carry out energy-saving promotion activities,and enhance energy-saving awareness across all employees.

“High water-risk level" generallyrefers to a relatively high level ofrisk identified in flood and droughtdisaster prevention or water-relatedhazard assessments, arising fromthreats such as rainfall, river over?ow,dam failure, or ?ash ?oods.

GoalReporting periodProgress During the Reporting PeriodIn 2025, the energy cost per unit decreased by 10%

compared with the previous year.

Short termAchievedIn 2025, the total energy cost decreased by 10% compared

with the previous year.

Short termAchieved

Changhong Meiling Energy-Saving Technical Retro?t Projects

Zhongshan Changhong Energy-Saving Technical Retro?t Projects

Utilization of Water Resources

Changhong Meiling places great emphasis on water resources management.The Company strengthens efficient water use through regular inspection andmaintenance of water facilities, comprehensive deployment of water-savingequipment, posting of water conservation signage, and targeted inspections ofpipelines to detect “leaks, overflows, and drips". The Company also applies theWorld Resources Institute's water risk assessment tools to model water-related risks,identifying regions such as Hefei, Mianyang, and Jingdezhen as areas classi?ed witha high water-risk level. In response, the Company implements targeted measures,including the construction of emergency water storage tanks and enhanced waterconservation awareness campaigns, e?ectively mitigating water resource pressureand continuously improving water management capabilities.

De?nition

Developing a Circular Economy

Changhong Meiling actively responds to the national circular economy development plan, strictly complies with relevant circulareconomy laws and regulations, and establishes key objectives including energy saving and emission reduction, as well as increasingthe proportion of recyclable and renewable materials in products. The Company prioritizes the use of environmentally friendly

Indicators and Targets Related to Energy Utilization

recycled materials and promotes lightweight product packaging;optimizes stamping molds to improve sheet metal utilization;and crushes waste cabinet plastics for reuse in sheet production,advancing waste reduction and resource recovery. The Companyalso actively participates in the national “trade-in" program forhousehold appliances, recycling used appliances to practice thecircular economy and accelerate the development of a greencircular industry. In 2025, through circular packaging and sourcereduction, Changhong Meiling achieved packaging materialprocurement cost savings of approximately RMB 0.5 million.Recycling and selling scrap metal, plastic, and cardboard generatedresource recovery revenue of approximately RMB 9.8 million.

5657

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,

ConnectingBetter Lives

FutureProspectsAppendixChairman's

Message

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

长虹空调参与"以旧换新"活动CaseChanghong Meiling's Ongoing Promotion of Packaging Material CircularityIn 2025, the Company adhered to standardized container use, aiming to reduce employee handling time and minimizenatural resource consumption. By encouraging suppliers to replace cardboard boxes with Euro-standard containers orreturnable carts for all materials, the Company gradually achieved a cardboard-free manufacturing process, realizing a fullyrecyclable packaging system.During the reporting period, Changhong Air Conditioner's suppliers switched to green packaging and implemented packagingrecycling, covering 800,000 compressor units and 450,000 motor units, cumulatively reducing waste by approximately 390tons, signi?cantly decreasing the generation of solid packaging waste.

Previously used non-reusable packagingCurrently used reusable packaging

Supplier's previously used non-reusable packaging

Supplier's currently used reusable packaging

Changhong Meiling follows industry trends of green, high-e?ciency, and energy-saving products, placing sustainable developmentas a core guiding principle. Adopting a prevention-?rst approach, the Company integrates environmental protection concepts acrossthe full product lifecycle—including raw material procurement, product design, manufacturing, packaging and logistics, and productrecycling—continuously advancing the green upgrading of its products.

Green Production and Operations

Advancing Green Products

Changhong Meiling remains committed to green development, integrating environmental protection principles throughout its entireproduction and operational chain. The Company actively advances green practices, ful?lls its ecological responsibilities, and promotessustainable development.

Raw Material Procurement

Product Manufacturing

Product Recycling

Green Design

Product Packaging

Production Line Upgrades

Priority is given to recyclable and renewableraw materials, all of which comply withWEEE, RoHS, and other relevant regulatorycerti?cations.Bio-based materials are applied at scale,incorporating degradable and environmentallyfriendly components such as straw andbamboo/wood powder, effectively reducingplastic consumption.

Incorporate principles of disassembly,repairability, and reusability at the designstage to enhance secondary productutilization.Standardize material labeling to reducecomplexity in recycling at the product end-of-life stage.

Advance the upgrading and retrofitting ofproduction line equipment, eliminate high-energy-consuming and non-compliantdevices, and implement technologicalupgrades on outdated equipment. Reducethe consumption of scarce resources such ascopper, aluminum, and tin, while improvingthe level of clean production.Optimize production processes and developnew surface decoration technologies toreplace traditional spraying, improvingmaterial recyclability.

Continuously develop high-efficiency, low-energy-consumption products to improve energy efficiency ratios.Promote standardization of core components, simplifying thevariety and quantity of parts.Complete the environmental upgrade of air-conditioningrefrigerants, replacing the ozone-depleting R22 withenvironmentally friendly R290 propane, thereby reducinggreenhouse gas emissions at the source and supportingboth ozone layer protection and carbon reduction targets,demonstrating responsibility in green manufacturing.

In the freezer production park, air-source mold temperatureunits replaced traditional temperature control units,achieving a 20% reduction in electricity consumption.In the refrigerator production park, remote-controlledautomatic valves were used to precisely control steam usagetime, resulting in a 19.4% year-on-year reduction in steamconsumption in 2025.

Develop and promote low-carbon, environmentally friendlypackaging materials to gradually replace non-recyclablepackaging;Optimize user manuals by providing simplified paperinstructions alongside electronic guides to reduce paperusage;Fully implement green packaging concepts, moving towardcardboard-free packaging with Euro-standard containers,achieving a material switching rate of 76% in 2025.

5859

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,

ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors'

ESG Statement

About ChanghongMeiling

ESGManagement

Changhong Air Conditioner implemented integrated structural optimization in the packaging system of its split-typecabinet products. By applying structural simulation analysis and topology optimization technologies, the originalpackaging cushioning system was systematically redesigned, promoting lightweight, reduced, and recyclable packagingmaterials.

Changhong Meiling applied Euro-standard container packaging throughout its operations, fully implementing green packaging practices.

Original Packaging of Split-type Cabinet UnitsImproved Packaging of Split-type Cabinet Units

Case

Changhong Living & Dining Room Pro Shared Air ConditionerReceives Energy-Saving, Carbon-Reduction, and EnvironmentalProduct Certi?cationIn May 2025, the Changhong Living & Dining Room Pro Shared Air Conditionerwas recognized for its excellent energy-saving performance and low-carbon

Changhong Meiling strictly adheres to nationalgreen factory evaluation standards andconstruction requirements, systematicallyadvancing the creation of green factoriesacross all subsidiaries. In 2018, the Companywas successfully approved as a “National-LevelGreen Factory," establishing a fully integratedgreen framework to strengthen the foundationfor sustainable development. In 2025, theGreen Manufacturing Grading Cultivation Listrecognized Changhong Air Conditioner as a“Provincial-Level Green Factory."

Establishing GreenFactories

Split-type air conditioners and cabinet units producedby Changhong Air Conditioner have obtained ChinaGreen Building Product certification

Certificate of "2024 China Association

of Refrigeration Energy-Saving, Carbon

Reduction and Environmental Protection

Products"

Owing to its outstanding contributionsin green technology R&D, intelligentmanufacturing, and sustainabledevelopment, Changhong AirConditioner was awarded the “GreenPioneer Enterprise" title at the “GreenCertification Driving High-QualityEnterprise Development Conference,"hosted by the Zhonghuan UnitedCerti?cation Center.

Honors and Awards

The Company carries out campaigns promoting the conservation ofpaper, water, and electricity

Waste sorting bins have been provided in office and residentialareas to facilitate proper disposalChanghong Meiling and its subsidiaries actively respond to international initiatives, including the United Nations Convention onBiological Diversity and the 2030 Agenda for Sustainable Development. The Company strictly complies with domestic regulations,speci?cally the China National Biodiversity Conservation Strategy and Action Plan (2023–2030). It conducts in-depth assessments ofthe potential impacts of its business activities on biodiversity and the ecological environment, and further clari?es environmentalprotection responsibilities, pollution prevention and control measures, and the identification and remediation of environmentalhazards across the full lifecycle—from product design and development, procurement of raw and auxiliary materials, and productionprocesses, to product sales.

Protecting Biodiversity

Changhong Meiling actively incorporates environmental protectionconcepts into daily operations, focusing on energy and resourcemanagement in office and residential areas. The Company hasestablished a systematic energy management mechanism,developed annual energy management plans, formed dedicatedtask forces, appointed part-time energy managers with clearlydefined responsibilities. Through precise electricity-savingmeasures, comprehensive water conservation initiatives, promotionof low-carbon office operations, and resource efficiency practices,the Company advocates waste sorting and aims to create a greenand low-carbon o?ce and living environment.

The Company has conducted environmental awareness campaignsthemed “Lucid Waters and Lush Mountains are Invaluable Assets"

Promoting Green O?ce Practices

environmental features, successfullybeing listed in the “2024 Energy-Saving,Carbon-Reduction, and EnvironmentalTechnology Product Catalog"published at the Chinese Associationof Refrigeration Member Conference.The air conditioner employs refrigerantflow adaptive adjustment technologyto optimize energy use. Its APF valuereaches 5.20, representing a 23.81%improvement over the Level 1 energyefficiency standard of 4.2, positioningit as an industry-leading cabinet airconditioner.

EmbracingResponsibilityConnecting BetterLivesChanghong Meiling has established a standardized, transparent, and securelycontrolled sustainable supply chain system, fosters a people-centeredworkplace environment, and actively ful?lls its social responsibilities. Throughcomprehensive responsible practices, the Company is committed to promotingharmonious coexistence among the enterprise, its partners, employees, andsociety.

6160

6263

Ensuring Compliance,Cultivating ResponsibleBusiness

Advancing SmartManufacturing, RenewingBetter Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendixChairman's

Message

Board of Directors'

ESG Statement

About Changhong

Meiling

ESGManagement

Building a Responsible Value Chain

The Company has developed a tiered, cross-functional matrix organizational structure and has established a dedicated procurementdepartment responsible for supply chain management, clearly defining the scope of responsibilities for each level and team. Thisstructure covers the entire process of supplier development, procurement execution, contract ful?llment, and ESG management.Changhong Meiling strictly complies with the Regulations on Ensuring Payment of Funds to Small and Medium Enterprises and theAnti-Unfair Competition Law of the People's Republic of China, among other relevant laws. Core systems, including the SupplierManagement Basic System and Supplier Risk Management Standard, are in place. A dual audit mechanism for supplier quali?cationsand capabilities ensures attention to product quality and delivery capacity. Through systematic supplier onboarding, evaluation,empowerment, and performance assessment, ESG requirements are deeply integrated into supplier management, promotingsustainable collaboration along the industrial chain.

The Company adheres to the principle of "full-chain collaboration, end-to-end control, and deep ESG integration." Supply chainmanagement is strengthened by optimizing resource allocation, establishing digital platforms to reduce information barriers withsuppliers, and leveraging internal advantages to foster harmonious, stable, and healthy supply chain development.Types of Risk and

Opportunity

Risk and Opportunity Description

ImpactSeverity

ImpactTimeframe

Mitigation MeasuresPolicy andRegulatory Risk

Suppliers failing to meet environmentalpolicy requirements may increase the cost ofsourcing new suppliers.

MediumMedium term

Conduct policy research, pre-identifynew suppliers, and sign environmentalcompliance agreements with coresuppliers to ensure raw materials meetrelevant standards.

Operational Risks

Raw material price ?uctuations and highercosts for low-carbon materials may increaseproduction costs.

Medium

Medium toLong Term

Optimize supply chain management, signlong-term procurement agreements withmaterial suppliers,, and explore low-costalternative materials.Supply chain disruptions caused by forcemajeure events, such as natural disasters (e.g.,earthquakes, ?oods) or geopolitical con?icts,may result in higher production costs.

HighMedium term

Prioritize local suppliers and develop adiversi?ed supplier network, avoiding rawmaterials from conflict or controversialregions.Ine?cient information ?ow across the supplychain may result in inventory accumulation,delivery delays, or quality issues.

High

Medium toLong Term

Promote supply chain digitalization toenable real-time information sharingbetween the Company and its suppliers.Technologicalinnovationopportunities

The application of technologies such as IoT,AI, and blockchain can optimize supply chainmanagement, improving transparency andresponse speed.

Medium

Medium toLong Term

Continuously optimizes and upgradesthe SAP and ISRM Smart Supply ChainCollaboration Platforms to enhancesupply chain management e?ciency.Green TransitionOpportunities

Increasing awareness of environmentalprotection among consumers andregulators creates opportunities for greentransformation.

Medium

Medium toLong Term

Adhere to green procurement policies andprioritize suppliers with environmentalcerti?cations.Brand ValueOpportunity

Establishing close collaboration withupstream and downstream partners canenhance supply chain e?ciency andstrengthen brand competitiveness.

MediumLong-term

A collaborative supply chain platform isestablished to share demand forecastsand production plans.

The Company has established a systematic mechanism for supply chain risk identi?cation, risk assessment, and risk response. Clearevaluation and assessment standards are de?ned for supplier selection, auditing, appraisal, and performance evaluation processes.Suppliers in the database are managed through tiered and di?erentiated approaches, ensuring the continuous stability of the supplychain.

Developed the Material and Service Supplier Management Regulations and Production Material SupplierOnboarding Management Measures, establishing quantitative indicators across five dimensions:

compliance and quali?cations, production capacity, quality and technical capabilities, environmentalperformance, and social responsibility, forming a multi-dimensional assessment standard.New suppliers are, in principle, subject to 100% on-site audits, with third-party veri?cation applied toensure compliance and to mitigate the risk of "paper quali?cations."Suppliers are categorized by strategic importance and risk level into strategic, core, and quali?ed tiers,with di?erentiated allocation of cooperation resources and audit frequency.SupplierOnboarding

Developed Production Material Supplier Audit Management Measures and Production Material SupplierPerformance Evaluation Management Measures, establishing mechanisms for routine assessment,dynamic spot checks, and event-triggered audits.An ESG-based assessment framework is applied, incorporating environmental (E), social (S), andgovernance (G) indicators, including environmental certi?cations and labor rights protection.Quarterly ESG dynamic assessments are conducted. Suppliers failing the assessment trigger aremediation warning process. Suppliers rated non-compliant for the quarter are required to suspendsupply and rectify within a de?ned period, and those failing annual performance evaluation are removedfrom the supply base.Developed the Supplier Incentive and Exit Regulations, specifying trigger conditions such as suppliersinactive for 24 consecutive months, high-risk evaluation, or poor audit ratings.A standardized exit process provides a 1–3 month recti?cation period; if corrective measures fail, the exitprocess is initiated concurrently with a backup supplier switch plan to ensure uninterrupted supply.In 2025, the Company completed the exit of 23 suppliers.

Governance Related to Supply Chain Management

Strategy Related to Supply Chain Management

Management of Impacts, Risks, and Opportunity Related to Supply Chain Management

SupplierAssessment

Supplier

Exit

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Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendix

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Chairman's

Message

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, RenewingBetter Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,

ConnectingBetter Lives

FutureProspectsAppendix

Distributor Summit hostedby Zhongke Meiling

2025 Annual Marketing DivisionProcurement Manager TrainingConference conducted by the

Company

Guided by the Company's carbon peak by 2030 and carbon neutrality by 2060 strategies, Changhong Meiling has established afull-chain sustainable supply chain management system. In accordance with applicable laws and regulations, national standards,the relevant Guidelines, and based on the Company's actual circumstances, specific objectives have been set for supply chainmanagement issues, and the implementation of these objectives is continuously monitored.During the reporting period, the Company achieved its supply chain management-related performance targets.

CategoryGoal

Reporting

Period

Progress During theReporting PeriodSupplier ESGManagement

In 2025, 10 suppliers underwent on-site ESG supervisory audits,with 100% completion of document-based reviews.

Short termAchievedIn 2030, 50 suppliers underwent on-site ESG supervisory audits,with 100% completion of document-based reviews.

Medium to

Long Term

Ongoing follow-upLocalizedprocurement

The number of locally sourced suppliers increased by over 10%year-on-year.

Short termAchieved

Leading Industry Development

Industry-university-research Cooperation

Changhong Meiling upholds an open, cooperative, and win-win philosophy, viewing industry collaboration as a key driver for bothcorporate and sectoral development. The Company actively engages in industry-academia-research (IAR) cooperation, participates inindustry exchanges and collaborations, treats small and medium-sized enterprises (SMEs) equally, and works together with SMEs toachieve mutual progress.

Changhong Meiling regards collaborative innovation with universities and research institutions as a core driver of high-qualityenterprise development. The Company has established deep partnerships with leading domestic universities, forming joint university-enterprise innovation teams and conducting targeted technological R&D. This approach converts cutting-edge academic research intoenterprise productivity, continuously fueling innovation for industry advancement and corporate growth.

Higher education institutions in Anhui Province visited Changhong Meiling to conduct enterprise visits and promote industry-academia-research(IAR) collaboration

The Company signs Corporate Social Responsibility Agreements with suppliers and provides onboardingtraining for supplier employees entering Changhong Meiling facilities, covering the Environmental (E),Social (S), and Governance (G) dimensions, establishing a routine communication mechanism.Diverse supplier training is conducted through a combination of "annual supervisory audits + on-sitequality and technical guidance." Approximately 10% of suppliers are trained each year. In 2025, 17suppliers received training.The Company has implemented a smart supply chain platform (ISRM system), enabling real-timesharing of order status, production progress, inventory levels, and quality inspection data with suppliers,reducing delivery delays caused by information asymmetry.

SupplierCommunication

and Training

Implemented the Material and Service Supplier Management Regulations to establish a three-dimensional ESG quantitative evaluation system, enabling precise grading and differentiatedmanagement.Developed a tiered and categorized ESG audit process with "annual supervisory spot audits + annualfull-cycle audits," helping suppliers improve ESG management practices.In 2025, Changhong Meiling conducted on-site supervisory spot audits for 10 suppliers and surveyed 285active suppliers in writing regarding ESG management. Certi?cations among suppliers include ISO 14001(153 suppliers), ISO 45001 (101 suppliers), and SA8000 (5 suppliers).Supplier ESGManagement

Indicators and Targets Related to Supply Chain Management

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Message

Board of Directors'

ESG Statement

About Changhong

Meiling

ESGManagement

Industry Development Collaboration

Equal Treatment for Small and Medium Enterprises

With a cooperative and win-win approach, Changhong Meiling actively participates in industry exchanges and collaborations,integrating proactively into the broader industrial ecosystem. By attending industry summits and engaging in sector collaborations, theCompany strengthens linkages across stakeholders, shares technological achievements, and explores development pathways. Thesee?orts contribute to coordinated upgrading of the home appliance industry, fostering symbiotic growth and mutual bene?t.

Changhong Meiling strictly complies with the Regulations on Ensuring Payment of Funds to Small and Medium Enterprises and otherrelevant rules. The Company requires suppliers to prohibit child labor and forced labor, ensure timely and full wage payments, andavoid arrears to SMEs. Contractual payment terms with SMEs are consistent with those for other enterprises, without discriminationbased on company size, and debts are repaid as per contractual agreements. For selected high-quality SMEs, the Company providessupport such as optimized payment terms and ?nancing recommendations, helping SMEs enhance their risk resilience and fosteringa collaborative supply chain ecosystem involving large, medium, and small enterprises. As of the reporting period, there were nooverdue payments to SMEs.

Co-hosting the "AI Family Day" event with XPeng Motors

Showcasing high-precision products at the RCEP Exhibition

Successfully holding the strategic cooperation meeting on homeappliances with Wuhan Industry & Trade

Exhibiting products at the IFA Expo in Germany

Empowering Employee Growth

Protecting the Rights and Interests of Employees

The Company prioritizes talent development, places high importance on employee rights protection, and continuously enhancesemployee engagement and sense of belonging. By providing a safe and supportive workplace environment and upholding safeproduction principles, the Company ensures the occupational health and safety of all employees.

Changhong Meiling is committed to respecting and caring for every employee. The Company strictly complies with relevant nationallaws and regulations, including the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic ofChina, and the Employment Promotion Law of the People's Republic of China. Internal management systems, such as the RecruitmentManagement System, the Corporate Social Responsibility HR Management System, and the Employment Information DisclosureImplementation Rules, have been established and continuously re?ned to safeguard employees' fundamental rights.

The Company adheres to a recruitment principle of "people-oriented, fair and just, and job-role matching" and upholds acompensation philosophy of "re?ecting job value and performance-driven." Changhong Meiling has established a comprehensive,closed-loop system for managing the impacts, risks, and opportunities related to employee rights. Through systematic scanningand identi?cation of internal and external strategic factors, an initial list of employee-related topics is formed. These topics are thenassessed and prioritized into high, medium, and low categories, with corresponding response strategies and action plans developed.Leading and lagging indicators are set to monitor progress continuously, and periodic management reports review implementation,forming a "plan–do–check–act" continuous improvement cycle. This ensures that challenges and opportunities related to employeesare converted into sustainable competitive advantages for the Company.Types of Risk and

Opportunity

Risk and Opportunity Description

ImpactSeverity

ImpactTimeframe

Mitigation Measures

Other Risks

Employee dissatisfactionwith compensation or workenvironment may trigger labordisputes.

MediumShort term

Establish a performance-driven ?exiblecompensation system and a regularcommunication platform to respondpromptly to employee concerns.Failure to legally execute laborcontracts or fully compensateovertime work may result in laborinspection penalties or collectivelabor disputes, severely damagingcompliance credibility andcorporate reputation.

HighShort term

Strict compliance with laws andregulations, establishment of a full-processemployment compliance managementsystem, and proactive mitigation of labor-related risks to prevent escalation.

OtherOpportunities

A fair and attractive compensationand bene?ts system can stabilizethe core workforce and signi?cantlyenhance employee engagement andproductivity.

High

Mediumterm

Develop a combination of variable pay andlong-term incentive mechanisms, o?eringpersonalized and ?exible bene?t packageslinked closely to skills development andcareer progression.A strong employer brand canhelp attract top talent, building amore capable and value-creatingworkforce.

HighLong-term

Reduces recruitment costs, improvesthe quality of hired talent, strengthensteam competitiveness, and enhancesoverall corporate reputation.

Governance Related to Employee Rights Protection

Strategy Related to Employee Rights Protection

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Message

Board of Directors'

ESG Statement

About Changhong

Meiling

ESGManagement

Changhong Meiling actively conducts both social recruitment and campus recruitment, leveraging online and o?ine channels to attract high-quality talent. Flexible employment positions are also provided. The Company strictly adheres to the Employment Information DisclosureImplementation Rules, ensuring fairness, impartiality, and transparency across three dimensions: recruitment information, interview process, andhiring outcomes. In 2025, Changhong Meiling recruited a total of 233 new employees through social recruitment, including 177 male and 56 femaleemployees.

In accordance with the recruitment management system, the Company provides equal employment opportunities and fair employmentconditions, strictly prohibiting employment discrimination. Equal employment and equal pay for equal work are enforced, preventing anydiscrimination based on nationality, race, religion, ethnicity, gender, age, disability, or marital/childbearing status. A three-tier review mechanismis established to prevent the use of child labor, and any forms of forced labor are strictly prohibited. Changhong Meiling respects employees fromdiverse cultural, ethnic, and religious backgrounds, fostering an inclusive and diverse workplace environment. During the reporting period, noincidents of child labor, forced labor, harassment, bullying, or intimidation were identi?ed.

The Company publicly discloses performance evaluation rules and results for each department in a timely manner and provides multi-level feedback channels. If employees have objections to their performance evaluations, they may submit written feedback to theHuman Resources Department within the prescribed timeframe. Departments are required to address and respond to appeals withinthe stipulated period, and, if necessary, convene ad hoc review meetings for resolution. Accountability mechanisms are establishedin accordance with the compensation and performance system rules to audit performance assessments, incentive allocation, andcompensation outcomes.

The Company strictly complies with relevant national laws and regulations, and has formulated internal compensation systems, includingthe Compensation Management Measures and Performance Assessment Management Measures, to regulate compensation management,distribution, and payment, enhancing both internal fairness and external competitiveness. Compensation is dynamically adjusted based on jobvalue evaluation, merit-based salary adjustments, and technical points systems to ensure alignment with market standards and employee needs.Employee bene?ts include social insurance and housing fund, regular health check-ups, employee care programs (gym access, holiday bene?ts,departmental team-building activities), and various allowances (communication allowance, high-temperature allowance, meal allowance, etc.).For dispatched labor, employees are enrolled in social insurance and enjoy the same bene?ts such as health check-ups and holiday allowances.The Company has formulated the Measures for the Administration of Employee Bene?ts and the Measures for the Administration of EmployeeLeave. Employees are entitled to paid annual leave, maternity leave, parental leave, childbirth leave, care leave and other entitlements.

To ensure the development and protection of the rights and interests of its employees, the Company has earnestly advanced workforceconstruction in accordance with the deployment requirements for industrial reform, focusing on skills development, career progression,protection of labor and economic rights and interests, platforms for employees to contribute and achieve, and workforce expansion.Emphasis is placed on the Company's leading role in establishing an employee development system characterized by sound institutionalimplementation, improved competence, and guaranteed rights and interests, with the aim of cultivating a knowledge-based, skilled,and innovative workforce to support the high-quality advancement of industrial reform. In accordance with the law, the Companyhas established mechanisms for labor dispute mediation and labor protection supervision, conducts legal education seminars, andsystematically enhances employees' ability to safeguard their rights and the level of occupational health protection. Furthermore,the Company systematically organizes a series of "Diverse and Multi-Skill" competitions, promotes "Five Small" innovations and teambuilding, and fosters the spirit of craftsmanship through employee innovation studios. It strictly implements the workers' congresssystem, deepens the disclosure of factory a?airs, standardizes labor contracts and collective negotiation, and builds harmonious andstable labor relations, laying a solid foundation for both industrial reform and workforce development.

Changhong Meiling strictly complies with the Trade Union Law of the People's Republic of China and the Labor Law of the People's Republicof China, establishing a democratic management system centered on the Workers' Congress. The Company has established democraticmanagement systems, including the Workers' Congress Work System and the Notice on Standardizing the Hearing and Resolution ofEmployee Opinions by Management at All Levels, to institutionalize governance through trade unions and workers' congresses. Thesemechanisms standardize the procedures for convening the Workers' Congress, ensuring procedural fairness in the exercise of employees'democratic management rights within the corporate governance structure. Channels for democratic participation are maintained andmade accessible through trade union organizations, open management meetings, and collective bargaining, enabling systematic collectionof employees' opinions and requests. Reasonable suggestions are implemented, creating an environment for equitable dialogue, andsafeguarding employees' rights to information, participation, expression, and supervision. This ensures that grassroots concerns are fullyrecognized and transformed into key drivers for optimizing organizational e?ectiveness. A dedicated labor relations position is establishedto prevent and mediate labor disputes. An employee complaint platform is maintained, providing multiple channels from suggestion boxes,trade union representatives, functional departments, supervisors, up to the Chairman of the Company. Collaboration among departmentsensures timely communication, negotiation, and mediation, promoting harmonious labor relations and sustainable enterprise development.

The Company has established policies, including the Employee Handbook and the Implementation Measures for EmployeeSatisfaction and Engagement Management, to provide channels for surveying employee engagement and satisfaction. Regular surveyson engagement and satisfaction are conducted to understand employees' genuine perceptions and to enhance the efficiency ofhuman resource management.

Diverse Recruitment

Compliant Employment

Performance Feedback and Appeals

Remuneration and Bene?ts

Deepening the Development of the Industrial Workforce

Democratic Management

Employee Satisfaction Surveys

The Company conducted university roadshow recruitment activities

In 2025, Changhong Meiling was awarded the Yupao Direct Hiring Star

Employer Award

In 2025, the Company was awarded the Liepin Extraordinary Employer

Award

On-site Presentation of the Company's Westward Expansion Plan

Management of Impacts, Risks, and Opportunity Related to Employee Rights Protection

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ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

The Company organized new employees to participate in the XinghuoTraining Camp

The Company conducted core team leader training programs

The Company has established employee training and development management systems, including the Talent Development Plan,Job Grade Management Measures, and Implementation Measures for Professional Skill Level Assessment. It has built six vertical careerdevelopment tracks covering management, R&D, technical, functional, marketing, and production roles. In addition, horizontal careerdevelopment tracks have been established to implement a dual-track management model for professional and managerial roles. Each trackfeatures multiple promotion tiers to guide employees' career progression and remove barriers to talent development.

The Company adheres to the principle of "enhancing all employees, focusing on key talents," aiming to establish a learning organization andsystematically build a comprehensive talent development system covering all employees throughout their career lifecycle. By establishingand improving the employee training system, implementing tiered and categorized training, cooperating with external institutions, andencouraging employees to pursue academic degrees, the Company supports employees in enhancing their professional competence andskills. Around employee growth, a dual career pathway for management and professional expertise has been established, ensuring thatemployees can access clear promotion ladders and broad development opportunities, whether they aspire to be outstanding managers orsenior specialists.

The Company has developed a robust training management and career development system to meet employees' professional developmentneeds and align with the Company's strategic objectives, through systematic training plans, process and policy guarantees, and enrichedresource allocation.

Horizontal development is divided into cross-track horizontal development and dual-directionaldevelopment between management and professionaltracks.For cross-track development, the Company encouragesemployees from various professional tracks toparticipate in horizontal positions in line with theircareer plans, expertise, and capabilities.We have established a dual-career development systemthat enables lateral mobility between professionaland managerial tracks. This allows professional-trackemployees to compete for management positions,while management-track employees can participate inprofessional-track evaluations.

To ensure the achievement of employee training and development targets in 2026, the Company plans to implement a diversi?edtraining system, deliver tiered and categorized training programs, adopt a blended online-and-o?ine learning approach, and applytraining e?ectiveness evaluation and incentive measures.

The Company is committed to establishing an employee rights management system characterized by "compliance assurance, fairdevelopment, health and safety, and humanistic care," aiming to achieve full coverage of employee rights protection, steadily improveemployee satisfaction, and foster a caring and responsible employment environment. This supports talent retention and team stability.

The Company actively conducts employee satisfaction surveys using questionnaires, focus groups, and other methods to gain an in-depth understanding of employees' genuine thoughts and demands. The results are analyzed and discussed, and any objectivelyexisting issues are promptly addressed to comprehensively improve employee satisfaction, optimize management strategies, andpromote mutual growth between the Company and its employees. In 2025, employee satisfaction scored 72.74, and engagementscored 74.85, both showing year-on-year improvement.

Category2025 TargetsReporting PeriodProgress During the Reporting Period

Turnover rate of

employees

Maintain an employeeturnover rate below 5%

Short termAchieved (actual: 3.17%)

CategoryGoalReporting PeriodProgress During the Reporting PeriodAverage training hours

per employee

In 2025, the total training hours

amounted to 33 hours

Short termAchievedIn 2026, the total training hoursamounted to 40 hours

Short termPlanned for completion in 2026

Employee Training and Development

Types of Risk and

Opportunity

Risk and Opportunity Description

ImpactSeverity

ImpactTimeframe

Mitigation Measures

Other Risks

Intensi?ed industry competitionmay lead to the loss of coretechnical personnel.

High

Mediumterm

Re?ne the promotion and incentive mechanisms. For keyemployees, implement equity incentives and employeestock ownership plans to strengthen alignment and deepengagement between employees and the Company.Existing employee skills may notmatch the demands of businesstransformation and technologicaliteration, limiting strategyimplementation and innovation.

Medium

Medium

term

Develop micro-learning modules mapped to criticalpositions, establishing a three-tier learning systemcomprising micro-learning, project-based learning, andin-depth development; implement internal certi?cationand quali?cation assessments, and introduce "SkillAllowances" to incentivize priority skill acquisition.

OtherOpportunities

Transition to green manufacturingprovides career developmentopportunities for professionals skilledin low-carbon technologies.

Medium

Medium toLong Term

Cultivate employees through the internal training system,reducing the need for external recruitment.Investing in lifelong learning,build future-ready organizationalcapabilities and strengthenhuman capital barriers.

Medium

Medium toLong Term

Develop career development roadmaps aligned withbusiness strategy, collaborate with universities andtraining institutions to provide course-based training,establish internal knowledge-sharing platforms,and implement incentive mechanisms for academicadvancement.

Employee Career Development Channels

Employees in management and professional tracks can choosecareer paths aligned with their personal development plans forvertical advancement.Management-track employees undergo dynamic adjustmentsthrough evaluations that combine current incumbents andcandidates' presentations, competitive selection, democraticassessments, competency evaluations, performance scores,and performance grades.Professional-track employees are evaluated annually throughperformance assessments, technical evaluations, and expertappraisals. Results are combined with annual performancereviews and technical point rankings to determine job gradepromotions, ensuring a structured vertical growth path.

Vertical Development ChannelsHorizontal Development Channels

Indicators and Targets Related to Employee Rights ProtectionManagement of Impacts, Risks, and Opportunity Related to Employee Training and Development

Indicators and Targets Related to Employee Training and Development

Governance Related to Employee Training and Development

Strategy Related to Employee Training and Development

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Ecosystem

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Message

Board of Directors' ESG Statement

About Changhong

Meiling

ESGManagement

Changhong Meiling has established a comprehensive caring and support mechanism, conducting regular employee assistance activities.These include summer heat relief initiatives, protection of female employees' rights, support for employees facing difficulties, andcommemorative gifts for employees' children entering school, demonstrating attentiveness to employees' well-being. The Companyorganizes diverse cultural and recreational activities, strengthens sports and cultural development, and enriches employees' extracurricularlife, fostering a respectful, supportive, and harmonious work environment. These e?orts enhance team cohesion and engagement, building avirtuous and sustainable ecosystem of "caring for employees, improving e?ciency, promoting development, and giving back to employees."In 2025, the Company labor unior continued to strengthen support for employees in di?culty, successfully applying for and securing a total ofRMB 488,000 in hardship assistance funds from the higher-level labor union, distributed to the accounts of 488 employees, providing supportto households under ?nancial stress.

Changhong Meiling consistently places occupational health and production safety at the forefront of its corporate development. TheCompany comprehensively implements safety production initiatives, continuously strengthens the occupational health and safetymanagement system, and ensures employees' occupational health and workplace safety. These e?orts foster a safe and harmonious workingenvironment, laying a solid foundation for stable operations and high-quality development. In 2025, the Company's safety productioncontrol targets were set as follows: zero production safety liability incidents of Category II or above, zero production safety liability incidentswith direct economic losses of RMB 300,000 or more, and zero fire incidents with direct economic losses exceeding RMB 200,000. TheCompany regularly monitors progress against occupational health and safety targets, and all annual safety production control targets werefully achieved.

Prioritizing Employee Well-beingOccupational Health and Safety

Summer Heat Relief Campaigns

Support Initiatives for Employees inDifficult Circumstances

Sports and Cultural Festival Events

Activities for Protecting Female Employees' Rights

Visits and Assistance forHospitalized Employees

Maternal and Infant Care RoomsEmployee Reading Rooms

Changhong Meiling "Open Day" Events

A systematic mechanism for hazard identification, closed-loop remediation, and information trackinghas been established. Each unit implements closed-loop hazard management in accordance with theCompany's procedures for hazard registration, tracking, and closure. Regular inspections and remediationare conducted across all operational areas. Focusing on hazard inspection and remediation, a gradedhazard tracking risks have been eliminated. Signi?cant safety hazards (A/B level) are subject to company-supervised corrective actions, monitored until resolved, and formally closed. In 2025, Changhong Meilingidenti?ed a total of 172 hazards, including 106 hazardous chemical issues, 45 dust explosion issues, and 21basic management issues. By the end of 2025, 170 hazards had been recti?ed, achieving a remediation rateof 98.84%.A comprehensive system of emergency response plans has been established. Units regularly conductfire drills, hazardous chemical handling exercises, and other on-site incident simulations to assesspreparedness, enhance employee safety awareness, and strengthen emergency response skills.The latest Production Safety Accident Emergency Response Plan was filed with the Hefei EconomicDevelopment Zone Emergency Management Bureau in December 2024. In 2025, the Company conducted9 comprehensive drills, 52 specialized drills, and 82 on-site response exercises, with a total participation of13,987 person-times.The Company adheres to the principle of "safety first, prevention-oriented, comprehensive management,"implementing diversi?ed safety culture promotion and education activities. Safety knowledge dissemination,training on safety laws, regulations and safety certification, and campaigns such as the Ankang Cup, SafetyProduction Month, and Fire Safety Month guide employees to adopt correct safety concepts, behavioral habits,and working methods to achieve long-term safety production goals. In 2025, the Company organized 16thematic training sessions for full-time and part-time safety management personnel, with approximately 500participants, and 20 ?re and security-themed trainings with about 8,000 participants.The Company revised the Regulations on Occupational Health and Labor Protection Supervision andManagement, strengthening hierarchical control over occupational safety risks. Accredited third-partyinstitutions were engaged to conduct comprehensive testing of occupational hazard factors, includingnoise and chemical concentrations in production areas, covering 228 testing points to ensure full coverage.In 2025, Changhong Meiling completed 1,311 occupational health examinations, accurately identifying44 employees with occupational contraindications, who were immediately reassigned according toestablished procedures to prevent occupational health risks at the source. No occupational disease caseswere reported throughout the year.

The Company strictly complies with the Work Safety Law of the People's Republic of China, theSpecial Equipment Safety Law of the People's Republic of China, the Regulations on Safety ProductionManagement of Construction Projects, and other relevant laws and regulations. Internal managementsystems have been formulated and implemented, including the Safety Training Management System,the Hazard Identi?cation and Safety Risk Classi?cation and Control System, and the Stakeholder SafetyManagement System. A comprehensive safety production framework has been established. The SafetyProduction Committee, led by the President, serves as the top safety leadership body, supported by theindependent Safety and Environmental Protection Department. Subsidiaries and relevant departmentshave set up safety leadership teams. Each unit/department has dedicated (or part-time) safety o?cers,building an enterprise model emphasizing intrinsic safety and scienti?c development.

Safety ProductionManagementSystem

Preventing SafetyRisks

Safety EmergencyManagement

Safety CultureDevelopment

OccupationalHealth Protection

The scope of statistics for completed occupational health examinations covers Changhong Meiling headquarters, Changhong Air Conditioner,and Zhongshan Changhong.

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FutureProspectsAppendixChairman's

Message

Board of Directors'

ESG Statement

About ChanghongMeiling

ESGManagement

Target CategorySpeci?c TargetTarget Value

ActualAchievement

Achievement

Status

Key NotesOccupational Health

Examinations

Coverage rate ofoccupational health

examinations

100%100%Achieved

Full-cycle coverage including pre-job,on-job, and post-job periodsOccupationalDisease HazardTesting

Coverage rate ofoccupational diseasehazard factor testing

100%100%Achieved

Completed third-party testing at 228monitoring points, providing datasupport for risk preventionEmergency drill

Number of emergency

drills conducted

Not less than 44 timesAchieved

Covered core emergency scenariosfor high-risk positions; signi?cantlyimproved employees' emergencyresponse capabilitySpecial Inspections

Number ofoccupational healthspecial inspections

Not less than 1212 timesAchieved

Achieved 100% hazard recti?cationrate, ensuring closed-loop hazardmanagementIncident Prevention

Incidence rate ofoccupational diseasesand occupationalhealth accidents

Double Zero

Zero occupationaldiseases, zerooccupational healthaccidents

Achieved

Established a full-chain occupationalhealth protection network

Training Coverage

Coverage rate of

occupational healthtraining

All employeesFully coveredAchieved

Signi?cantly improved employees'awareness of occupational health

Certified under the Occupational Health

and Safety Management System

Occupational Disease Hazard TestingOccupational Health Examinations

Changhong Meiling "Charity-Based Agricultural Assistance Initiative"

Safety knowledge training

"Road Safety Guidance" VolunteerActivityEmergency drill for hazardous chemical spill

"2025 Lighthouse Music Night" Community Event

Safety knowledge competition

"Co-building the Union Happiness Station" Book DonationCharity Initiative

Dedicated to Giving Back to SocietyChanghong Meiling upholds a strong sense of corporate citizenship, integrating social responsibility deeply into its developmentstrategy. The Company actively advances its social impact across multiple dimensions, including rural revitalization, community co-building, and public welfare initiatives, demonstrating corporate social value and ful?lling its social responsibilities. In 2025, MianyangMeiling conducted supportive procurement of agricultural and sideline products from regions including Seda and Pingwu in SichuanProvince, totaling RMB 106,000; Zhongke Meiling established university scholarships with donations of RMB 450,000.

Responding proactively to nationalstrategies for comprehensiverural revitalization, the Companyleverages industrial assistance andconsumer-driven support throughthe "Charity-Based AgriculturalAssistance Initiative," promotinglocal economic prosperity and socialprogress while injecting corporateresources into rural development.

The Company commits to social welfare,organizing and participating in activitiessuch as voluntary blood drives, bookdonations, and community care visits.These programs extend support tovulnerable groups, including left-behindchildren and outdoor laborers, shapinga positive public image of ChanghongMeiling as a socially responsible andmission-driven enterprise.

The Company engages deeply with localcommunity development, utilizing itsresources through ?nancial support and otherchannels to actively participate in communitycultural events such as the "2025 LighthouseMusic Night." Employees are encouraged toparticipate in volunteer services, help maintainpublic order, and demonstrate exemplarycivic spirit, fully reflecting the Company'sresponsibility as a community co-builder.

Promoting rural

revitalization

Supporting Public Welfare and

PhilanthropyBuilding HarmoniousCommunities

2025 Occupational Health Quantitative Targets and Achievement Status

The scope of statistics for the 2025 occupational health quantitative targets and achievements covers Changhong Meiling headquarters.

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, RenewingBetter Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,

ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors' ESG Statement

About ChanghongMeiling

ESGManagement

In 2026, Changhong Meiling will remain ?rmly anchored to the goal of high-quality development,accelerating digital transformation and intelligent upgrades, deepening green technologyinnovation and end-to-end low-carbon practices. Leveraging technological capabilities to driveindustrial advancement toward greener solutions, the Company will strengthen talent pipelinesand stakeholder collaboration, building a modern enterprise model that is resilient, people-oriented, and value-creating. Changhong Meiling is committed to ful?lling its ESG promises andstriving to write a new chapter in the Company's sustainable development journey.

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ConnectingBetter Lives

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Message

Board of Directors'

ESG Statement

About ChanghongMeiling

ESGManagement

7879

Appendix

Key Performance Table

DimensionIndicatorUnit2025

?Self-generated electricity (PV, residual heat, wind)Ten thousand kWh570.29Total gasoline consumptionTon10.09Diesel consumptionTon106.68Natural gas consumption (total)10,000 m?271.32Heat consumptionmillion kJ29,937.26

Total comprehensive energy consumptiontce30,185.01Proportion of renewable energy in total energyconsumption

%18.24

Water ResourcesUsage

Total water consumptionm

1,335,122.04Water savedm

-34,899.17Recycled/reused waterm

493,251.63Water consumption per RMB million revenuem? / RMB million revenue43.91Proportion of recycled water in total water usage%36.94Circular Economy

Renewable materials consumptionTon800,417.56Total materials used in production and packagingTon959,981.98Product Quality

Management

Product ex-factory quali?cation rate%100.00

Customer Serviceand Rights

Number of product and service complaintsItem1,690.00Customer complaint resolution rate%100.00Complaint response rate%100.00Average complaint response timeHour0.5Average complaint resolution timeHour24Domestic customer satisfaction%98.92International customer satisfaction%98.80

Data Security

Number of data security / customer privacy trainingsessions

Times44.00Training coverage of data security / customer privacytraining sessions

%93Average training duration per person of data security /customer privacy training sessions

Hour1.5

DimensionIndicatorUnit2025EnvironmentalInvestment

Total environmental protection investmentRMB 10,0001,032.09Greenhouse GasEmissions

Direct greenhouse gas emissions (Scope 1)tCO

e905.21

Indirect greenhouse gas emissions (Scope 2)tCO

e53,966.44

Total greenhouse gas emissionstCO

e54,871.65

Total Carbon emissions per RMB million of output valuetCO

e/RMB million output value5.11

WastewaterDischarge

Industrial wastewater dischargeTon544,648.59

Domestic wastewater dischargeTon202,599.10

Total wastewater dischargeTon747,247.69

Chemical Oxygen Demand (COD) emissionsTon

43.01

Biochemical Oxygen Demand (BOD) emissionsTon

17.18

Ammonia nitrogen (NH

-N) emissionsTon

6.07

Total phosphorus emissionsTon0.63

Waste GasEmissions

Exhaust Gas EmissionsTon13.68

Exhaust gas emission intensityt / RMB 10,000 revenue0.0000045

Particulate matter (PM) emissionsTon0.53

Nitrogen oxides emissionsTon0.36

Volatile organic compounds (VOCs) emissionsTon12.01

Waste Disposal

Harmful waste generationTon653.87

Harmless waste generationTon32,569.58

EnergyConsumption

Total energy consumption per RMB million revenuetce / RMB million revenue0.96Total electricity consumptionTen thousand kWh19,955.33?Green electricity purchasedTen thousand kWh4,797.02

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, RenewingBetter Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendix

Chairman's

Message

Board of Directors' ESG Statement

About Changhong

Meiling

ESGManagement

8081

Ensuring Compliance,Cultivating ResponsibleBusiness

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,ConnectingBetter Lives

FutureProspectsAppendixChairman's

Message

Board of Directors' ESG Statement

About Changhong

Meiling

ESGManagement

DimensionIndicatorUnit2025

SupplierManagement

Total number of suppliers at the end of the reportingperiod

/1,602.00Localization rate of suppliers%44.53Number of suppliers with sustainability certi?cations/698.00Proportion of suppliers with sustainability certi?cations%52.28Amount of responsible (green) procurementRMB 10,0001,162,972.81

TechnologyInnovationManagement

RD investment amountRMB 10,00096,753.67Number of RD personnelPerson1,633.00Proportion of R&D personnel%11.64

IntellectualProperty Protection

Number of patent applications ?ledItem1,073.00Number of invention patents grantedItem219.00Number of utility model patents grantedItem520.00Number of design patents grantedItem94.00Total valid patents during reporting periodItem3,776.00Number of invention patents applied to main businessItem1,705.00Software copyrightsItem224.00

Employment and

Composition

Total employeesPerson14,028.00Number of female employeesPerson4,113.00Number of production personnelPerson7,094.00Number of sales personnelPerson4,031.00Number of technical personnelPerson1,985.00Number of ?nance personnelPerson322.00Number of administrative personnelPerson596.00Labor contract execution rate%100.00Turnover rate of employees during reporting period%3.17Number of employees with college educationPerson10,261.00Number of employees with bachelor's degreePerson3,460.00Number of employees with master's degrees or higherPerson307.00Proportion of female executives among total executives%28.57Number of Female Senior Management PersonnelPerson2.00Social insurance coverage rate%100.00

DimensionIndicatorUnit2025Development and

Training

Total investment in employee trainingRMB 10,000194.12Total employee training hoursHour50,754.00Employee training coverage rate%100.00OccupationalHealth

Employee work injury insurance investmentRMB 10,000647.78Employee work injury insurance coverage rate%100.00Rural RevitalizationInvestment in rural revitalizationRMB 10,000253.28Social Welfare

Initiative

Charitable donation amountRMB 10,00048.50Number of volunteer activitiesSession20.00Employee participation in volunteer activitiesPerson-time1,229.00Total hours of voluntary activitiesHour2,685.50

Company Overview

Number of Company DirectorsPerson9.00Number of Independent DirectorsPerson3.00Percentage of Independent Directors on the Board%33.33Number of Shareholders' General MeetingsTimes4.00Number of items discussed and reviewed atShareholders' General Meetings

Nos.26.00Number of Board MeetingsTimes15.00Number of items discussed and reviewed at BoardMeetings

Nos.106.00Integrity Building

Total Number of employees participating in anti-commercial bribery and anti-corruption Training

Person3,367.00Percentage of employees participating in anti-commercial bribery and anti-corruption Training

%74.00

StandardizedGovernance

Total Number of Standardized Governance &Compliance Training Sessions

Times11.00Total Duration of Standardized Governance &Compliance Training

Hour15.00Total Number of Participants in StandardizedGovernance & Compliance Training

Person2,024.00

Ensuring Compliance,Cultivating Responsible

Business

Advancing SmartManufacturing, Renewing

Better Services

Driving Green and Low-CarbonDevelopment, Protecting Our

Ecosystem

Embracing Responsibility,

ConnectingBetter Lives

FutureProspectsAppendixChairman'sMessage

Board of Directors'

ESG Statement

About ChanghongMeiling

ESGManagement

Index of Indicators

TitleSubtitleGuidelinesReport Preparation NotesT6Chairman's Message／Board of Directors' ESG StatementT4

About Changhong Meiling／

ESG Management

Sustainability StrategyT2Sustainability GovernanceT12、T14、T15、T16、T17、T18、T19、T51Materiality AssessmentT5、T10、T11Due Diligence and StakeholderCommunication

T9、T52、T53

Ensuring Compliance,CultivatingResponsible Business

Improvement of CompanyGovernance

T12、T51Building a Robust Risk Control

Defense Line

T51Ensuring InformationTransparency

T44、T53Adhering to Business EthicsT54、T55、T56Advancing Smart Manufacturing,Renewing Better Services

Stimulating Innovation VitalityT41、T42、T43Accelerating IntelligentTransformation

T42Pursuing Excellence in QualityT47

Building Service ExcellenceT48

Driving Green and Low-CarbonDevelopment,Protecting Our

Ecosystem

Combat with Climate ChangeT8、T21、T22、T23、T24、T25、T26、T27、T28Environmental ComplianceManagement

T29、T30、T31、T33Resource RecyclingT34、T35、T36、T37Green Production andOperations

T20、T32

Embracing Responsibility, Connecting

Better Lives

Building a Responsible Value

Chain

T45Leading Industry DevelopmentT46Empowering Employee GrowthT49、T50Dedicated to Giving Back to

Society

T38、T39、T40Future Prospects—／Appendix－T57