Xiamen Jihong Technology Co., Ltd. Environmental, Social and Governance Report 2025

March 2026

About This Report

Board of Directors Statement

Message from the Chairman

1.About Us

1.1 Company Profile 1.2 Organizational Structure 1.3 Milestones 1.4 Annual ESG Performance Highlights 1.5 Annual Honors and Awards

2.Double Materiality Assessment

2.1 Identification of Material Issues 2.2 Impact Materiality Assessment 2.3 Financial Materiality Assessment 2.4 Materiality Assessment Results

Stable Operation

3.Sustainability Management 3.1 ESG Governance 3.2 ESG Strategy 3.3 ESG Risk and Opportunity Management 3.4 ESG Indicators and Targets

4.Environment: Green Future 4.1 Green Production 4.2 Green Office 4.3 Climate Change 4.4 Biodiversity

5.Social: Giving Back to Society 5.1 Product Management 5.2 Supply Chain Management 5.3 Health and Safety 5.4 Talent Empowerment 5.5 Public Welfare and Charity About This Report Board of Directors Statement Message from the Chairman

6.Governance:

3.1 ESG Governance 3.2 ESG Strategy 3.3 ESG Risk and Opportunity Management 3.4 ESG Indicators and Targets 4.1 Green Production 4.2 Green Office 4.3 Climate Change 4.4 Biodiversity 6.1 Corporate Governance 6.2 Risk Management 6.3 Business Ethics

1.About Us 1.1 Company Profile 1.2 Organizational Structure 1.3 Milestones 1.4 Annual ESG Performance Highlights 1.5 Annual Honors and Awards

2.Double Materiality Assessment 2.1 Identification of Material Issues 2.2 Impact Materiality Assessment 2.3 Financial Materiality Assessment 2.4 Materiality Assessment Results

3.Sustainability Management 3.1 ESG Governance 3.2 ESG Strategy 3.3 ESG Risk and Opportunity Management 3.4 ESG Indicators and Targets

4.Environment: Green Future

5.Social: Giving Back to Society 5.1 Product Management 5.2 Supply Chain Management 5.3 Health and Safety 5.4 Talent Empowerment 5.5 Public Welfare and Charity About This Report Board of Directors Statement Message from the Chairman

6.Governance: Stable Operation 6.1 Corporate Governance 6.2 Risk Management 6.3 Business Ethics

7.Appendices

1.About Us 1.1 Company Profile 1.2 Organizational Structure 1.3 Milestones 1.4 Annual ESG Performance Highlights 1.5 Annual Honors and Awards

2.Double Materiality Assessment 2.1 Identification of Material Issues 2.2 Impact Materiality Assessment 2.3 Financial Materiality Assessment 2.4 Materiality Assessment Results

3.Sustainability Management 3.1 ESG Governance 3.2 ESG Strategy 3.3 ESG Risk and Opportunity Management 3.4 ESG Indicators and Targets

4.Environment: Green Future 4.1 Green Production 4.2 Green Office 4.3 Climate Change 4.4 Biodiversity

5.Social: Giving Back to Society

1.About Us 1.1 Company Profile 1.2 Organizational Structure 1.3 Milestones 1.4 Annual ESG Performance Highlights 1.5 Annual Honors and Awards

2.Double Materiality Assessment 2.1 Identification of Material Issues 2.2 Impact Materiality Assessment 2.3 Financial Materiality Assessment 2.4 Materiality Assessment Results

3.Sustainability Management

7.1 HKEX - Environmental, Social and Governance Reporting Guide Index 7.2 Shenzhen Stock Exchange ESG Index 7.3 Feedback Form

5.1 Product Management 5.2 Supply Chain Management 5.3 Health and Safety 5.4 Talent Empowerment 5.5 Public Welfare and Charity

This is the fourth Environmental, Social and Governance (ESG) Report issued by Xiamen Jihong Technology Co., Ltd. Aligned with the principles of objectivity, standardization, transparency, and comprehensiveness, it outlines Jihong Group’s endeavors and accomplishments in fostering comprehensive, coordinated, and sustainable development.

Reporting Period

The report covers the period from January 1, 2025, to December 31, 2025, while also incorporating relevant information from preceding years.

Report Scope

Unless otherwise specified, the organizational scope of this report includes Xiamen Jihong Technology Co., Ltd., as well as its branch offices and wholly-owned subsidiaries. It is consistent with the consolidated reporting scope specified in Jihong Group’s annual report.

References

This report extensively referenced the Environmental, Social and Governance Reporting Code in Appendix C2 of the Hong Kong Exchanges and Clearing Market’s Main Board Listing Rules, the Shenzhen Stock Exchange’s Self-Regulatory Guidelines for Listed Companies No.1 - Standardized Operations for Main Board Listed Companies and Listed Companies Self-Regulatory Guidelines No. 17 - Sustainable Development Report (Trial); In preparing this report, we also consulted the Global Sustainability Standards Board’s GRI Standards 2021 and the International Organization for Standardization’s ISO 26000 - Guidance on Social Responsibility.

Addressing

Reporting Principles

Materiality Principle: The report discloses the process of identifying and assessing material ESG issues, focusing on those that exert significant impacts on the Company. For detailed information, please refer to the section “Dual Materiality Assessment.”

Quantification Principle: Key performance indicators (KPIs) covering environmental and social dimensions are presented in quantifiable formats. For each quantitative data point, the report clearly explains the reference standards, calculation methods, and coefficient sources.

Principle of Balance: The report maintains an impartial and objective stance, comprehensively presenting ESG performance throughout the reporting period. It fully covers both positive achievements and negative impacts, and avoids selective disclosure or omissions that may distort readers’ judgment.

Principle of Consistency: Unless otherwise specified, the data collection methods and statistical calibers in this report remain consistent with previous reporting years.

Data Description

The financial data and the financial and audit reports referenced in this report are detailed in the Xiamen Jihong Technology Co., Ltd. 2025 Annual Report. Other data is primarily sourced from Jihong Group’s internal statistics. Unless otherwise specified, all currency values presented in this report are denominated in the Chinese Renminbi RMB.

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

Report Availability

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

At Jihong Group, the Board of Directors, as the Company's ultimate governing and decision-making body on ESG matters, has delegated full responsibility for ESG strategy and reporting to the Strategy Committee. The Board of Directors is charged with approving and providing ongoing oversight of key ESG issues, and with evaluating ESG risks to ensure the robustness of the Company's risk control and internal monitoring systems. In addition, the Company has established an ESG Decision-Making Department to drive implementation, coordinate cross-functional activities, and manage day-to-day ESG operations, thereby ensuring effective execution of ESG initiatives. Taking into account the industry profile, stage of development, business model, and development strategy, the Company regularly evaluates material ESG issues and submits the results to the board for review. Issues the board determines to be material with respect to ESG risks and opportunities are incorporated into the Company’s overall strategy, and the effectiveness of related mitigation and management measures is subject to continuous monitoring.

The Company also plans to establish targets in key ESG areas—including pollutant emissions, energy consumption management, water resource consumption anagement, and carbon emissions. We aim to integrate ESG management performance into daily operational objectives to strengthen ESG governance.

This report provides a detailed disclosure t of Jihong Group’s ESG progress and achievements in 2025. It has been reviewed and approved by the Board of Directors. The Board and all Directors confirm that, to the best of their knowledge, the content of this report is free of any false records, misleading statements, or material omissions. Each director assumes individual and joint responsibility for ensuring the truthfulness, accuracy, and completeness of this report.

Message from the Chairman

In 2025, the global process of sustainability has continued to accelerate. The deep integration of the green economy and digital transformation is profoundly reshaping the global industrial landscape. The Company firmly adheres to its strategic positioning of green development and dual-engine drive, fully integrating ESG principles into corporate strategy. With technological innovation as the driving force, the Company promotes green transformation to a higher level. Meanwhile, guided by a global vision, the Company actively expands into emerging markets, continuously enhancing comprehensive competitiveness and industry leadership in packaging and cross-border social e-commerce.

In terms of green sustainability, the Company strengthens environmental governance and establishes a green production system covering the entire value chain. By further optimizing environmental processes, the Company promotes low-carbon development throughout the full life cycle of packaging products, from design and manufacturing to recycling. Through active implementation of energy conservation and emission reduction strategies, the Company realizes intelligent and refined management of energy consumption, carbon emissions and resource utilization. In 2025, the Company obtained an additional provincial-level green factory certification, further consolidating its benchmark position in the green development of the industrial chain.

In terms of social responsibility, the Company continues to adhere to a customercentric and quality-based philosophy, constantly improving product safety and environmental standards to fully meet customers’ evolving demand for green products. By deepening ESG collaborative management mechanisms in the supply chain, the Company promotes the formation of a transparent, resilient, and sustainable business ecosystem. In talent development, the Company is committed to building a diverse and inclusive development platform, optimizing career development channels and enhancing employees’ sense of belonging and value recognition. In 2025, all production bases have obtained ISO 9001 Quality Management System certification, reflecting the Company’s rigorous standards and strict requirements in quality management.

In terms of corporate governance, the Company continuously improves its ESG governance structure, deeply integrating ESG targets into strategic decision-making and daily operations. The Company has established an efficient governance mechanism led by the Shareholders’ Meeting, the Board of Directors and senior management to ensure compliant, transparent and sustainable operation. Meanwhile, the Company has built a comprehensive risk control system covering supply chain management and data security. The Company promotes an integrity culture and strengthens compliance awareness among all employees, further consolidating the foundation of corporate governance.

Looking ahead to 2026, the Company will take green innovation as the core strategic focus. The Company will accelerate the deep integration of intelligent manufacturing and AI technology into various business sectors, driving the dual engines of green packaging and cross-border social e-commerce into a new stage of highquality and coordinated development. The Company will actively expand its global cooperation network, deepen market presence in countries and regions along the Belt and Road Initiative, empower Chinese brands to go global, and build a new sustainability system with global competitiveness. Going forward, the Company is ready to work together with partners from all sectors to jointly create a new blueprint for green, intelligent, and inclusive high-quality development.

1 About Us

Xiamen Jihong Technology Co., Ltd.

Xiamen Jihong Technology Co., Ltd. (the “Company”) is a leading firm that pursues technological innovation, model innovation and digital intelligence. The Company has developed a dual-business model encompassing crossborder social e-commerce and paper-based FMCG packaging solutions. Through years of focused investment and market cultivation, the Company has achieved significant scale advantages in its core businesses. Its paper-based FMCG packaging is the market leader in China by market share, while its cross-border social ecommerce operations rank among the leading players in China’s B2C cross-border social e-commerce sector, together forming a sustainable dual-engine growth model.

On 27 May 2025, the Company completed an H-Share IPO and was listed on the Main Board of the Hong Kong Stock Exchange. This listing achieved several notable firsts: Jihong became the first mainland company in the combined sectors of cross-border social e-commerce and FMCG packaging to achieve mathsf A + mathsf H dual listing, the first company from Xiamen to secure mathsf A + mathsf H status, and the first Hong Kong-listed issuer to have its shares included in the Stock Connect on the day of listing.

Corporate vision

Corporate culture

Business philosophy

Build ten brands with global influence.

We have always stuck to the principle of “surviving with quality and developing with credit”, and are dedicated to building ten brands with global influence to provide highquality products and extremely convenient services for global consumers.

Enable partners to achieve both material and spiritual prosperity.

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

Focusing on entrepreneurship and forging ahead through difficulties.

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

Simplicity, Perfection, efficient collaboration, goaloriented effort, and accountability for results.

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

Data-centric, technologydriven, outcome-focused and all are operators.

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

December 1996

December 2003

July 2016

December 2017

March 2018

2017

Jihong Group’s predecessor, Xiamen Zhengqi, was established, specializing in graphic design and advertising planning.

Jihong Group was officially founded and focused on the packaging industry, building ten factories across China to offer comprehensive marketing and packaging design services to leading FMCG companies.

Jihong Group released its IPO on the Shenzhen Stock Exchange.

Giikin was established to expand our cross-border ecommerce business in Southeast Asia, which opened up a new avenue of growth for us. Jihong Group consecutively entered the markets of Hong Kong, Japan, Thailand, Malaysia, and Singapore.

ihong Group upgraded the e-commerce management system v2.0.

Jihong Group expanded the R&D team, established a data analysis team, and implemented management systems for workflow, product selection, financial settlement, order tracking, and warehousing.

2019

March 2019

May 2019

November 2019

Early 2020

2020

Jihong Group made significant efforts to promote brand strategy and build corporate culture.

Jihong Group formed a brand operation team.

Jihong Group launched the e-commerce management system v3.0.

Jihong Group formed a platform e-commerce team.

Jihong Group initiated a full-scale drive towards enterprise automation and intelligence, which involved rolling out a big data system, an intelligent product selection system, and an automated advertising system.

Jihong Group upgraded the workflow management system V3.0

July 2021

2021

November 2021

June 2022

2022

2022

Jihong Group tried to broaden its brand portfolio by tapping into new markets such as lingerie and home textiles.

Jihong Group established a strategic partnership with Huawei Cloud. This partnership enabled it to utilize advanced AI technology and computing resources to implement intelligent systems for big data analytics, ad design and delivery.

Jihong Group entered the Eastern European market.

Jihong Group established cross-border electric bicycle and beauty product brands.

Jihong Group rolled out an automated operations management system on a third-party platform, which has contributed to the exponential growth of orders on that platform.

Jihong Group made significant progress in achieving our digital strategy objectives by implementing decision support systems, such as Smart Companion, Boss Assistant, Indicator Monitoring, and Talent Map.

2022

January 2023

June 2023

2023

February 2024

September 2024

Jihong Group upgraded the warehousing system and achieved fully automated and intelligent operations.

Jihong Group integrated the ChatGPT API to empower cross-border e-commerce businesses in areas such as AI-driven product selection, the creation of graphic and video advertising materials, and intelligent ad placement.

Jihong Group signed a joint innovation agreement on the AI large model with Huawei Cloud, officially launching the second phase of cooperation for AIGC-based deep empowerment of the cross-border e-commerce platform, jointly creating the Pangu cross-border ecommerce large model, and promoting a deeper level of digital transformation.

Jihong Group developed and perfected the automated, intelligent, and digital cross-border ecommerce business management system Gikin3.0. On this basis, Jihong Group gradually rolled out the e-commerce text vertical model ChatGiKin-6B, the e-commerce intelligent design and material generation vertical model GiiAI, and the intelligent ad placement 22assistant G-king, laying a solid foundation of intelligent systems for the Company’s long-term sustainable development in crossborder e-commerce business.

Jihong Group has submitted its application to the Hong Kong Stock Exchange and intends to complete an mathsf A + mathsf H dual listing plan.

The current Sheikh of Ras Al Khaimah in the United Arab Emirates, Sheikh Saoud, visited the company’s leadership, and both sides engaged in in-depth discussions on cooperation channels, investment projects, and market expansion.

September 2024

December 2024

May 2025

December 2025

In the same month, a delegation led by the Chairman of BMJ Industries - the largest tobacco production and manufacturing enterprise in the UAE - visited the company headquarters and its intelligent packaging production base. They highly recognized the company’s smart manufacturing, refined operational management, innovative development capabilities, and steadfast commitment to the core philosophy of “green, environmentally friendly, and sustainable.”

Jihong Group issued an announcement stating our intention to co-invest with VENUS TRADING FZCO to establish a joint venture, AJT Holding International Limited, at the Dubai International Financial Centre in the UAE. This initiative aims to actively expand overseas presence - particularly in the Middle East and Africa - and accelerate the international layout and strategic planning of its cross-border business.

Jihong Group was officially listed on the main board of the Hong Kong Stock Exchange.

Construction of the first overseas packaging production base at Ras Al Khaimah was mostly completed.

Environment: Green Future

Social: Giving Back to Society

Governance: Enhancing Governance

10 factories have been certified under the ISO 14001 for Environmental Management System. The photovoltaic projects at the Anhui factory and Xiamen factory are operating stably, collectively achieving carbon reductions equivalent to 2,341 tonnes of carbon dioxide. The Company obtained green product certification for express packaging. The Company completed carbon verification for ten factories and identified key emission risk areas. The Company recorded zero product recalls and no major safety or quality incidents related to products and services. All 10 production bases have been certified under ISO 9001 for Quality Management System; two production bases have received BRCGS mathsf A + grade certification; one production base has received BRCGS A grade certification; five production bases have undergone FSC certification; and two bases have obtained FSC trade certification. The Company spent RMB 136.10 million on R&D, accounting for 2.02% of operating revenue. The Company employed 602 R&D personnel, representing 12.66% of the total workforce. The Company filed 90 new patent applications, of which 36 were approved, obtained 44 new software copyrights, and secured 445 approved patents. Zero work-related fatalities occurred, with RMB 1.26 million invested in ensuring production safety; No occupational disease-related incidents were recorded, and employee safety training achieved 100% coverage. All ten production bases have obtained ISO 45001 Occupational Health and Safety Management System certification, and undergone internal audits, management reviews and third-party supervision audits. The Company convened four Shareholders’ Meetings and seven Board of Directors meetings throughout the year, with 100% attendance by Board members. The Company held two earnings briefings, responded to 80 interactive Easy posts, and issued 138 announcements. Jihong Group held six anti-corruption training sessions for employees and senior management. A total of 394 participants attended, with cumulative training hours reaching 23 hours. The Company conducted 5-hour anti-corruption training sessions for Board members, achieving a 100% participation rate. The Company was not involved in any litigation or administrative penalties related to corruption, bribery, or money laundering. The Company had no litigation or significant administrative penalties arising from unfair competition practices. Selected for the 2025 Listed Companies Reputation Ranking, awarded the title of Listed Company with Outstanding Competitiveness in Overseas Expansion

2 Double Materiality Assessment

In 2025, the Company carried out a materiality assessment to establish the double materiality matrix for 2025. This process enables the Company to balance the pursuit of economic value with environmental and social obligations, delivering sustainable value for all stakeholders.

To strengthen ESG management and improve information disclosure, the Company conducts materiality assessments to identify ESG issues in 2025, in reference to the Hong Kong Exchanges and Clearing Limited (HKEX)’s Environmental, Social and Governance Reporting Code and the ShenzhenStockExchange'sListedCompaniesSelf-RegulatoryGuidelinesNo.17-SustainableDevelopmentReport(Trial).

Materiality Assessment Process

Review and confirmation

After the assessment process, methodology, and Material Issues Matrix are reviewed and approved by the Strategy Committee, they will be submitted to the Board of Directors for final approval and disclosed in accordance with regulations.

The Company always attaches high priority to engagement with stakeholders by establishing a structured stakeholder engagement system and refining response and feedback mechanisms to ensure timely and effective communication. To scientifically identify material ESG issues and enhance the quality of related management and practices, we conducted stakeholder engagement research, which systematically gathered views and recommendations on sustainability from shareholders, customers, government and regulators, employees, partners, the media, community representatives, and other relevant parties. Through a standardized process of impact materiality assessment, we comprehensively evaluated the implications of various issues for the external environment and stakeholders. This has laid a solid foundation for the formulation and implementation of sustainability strategies, while continuously strengthening management and operational performance on material issues.

Impact Materiality Assessment Process

Stakeholder Communication at Jihong Group

The Company conducted financial materiality assessments to systematically evaluate the potential impacts of environmental, social, and governance (ESG) issues on financial performance. This assessment analyzes the potential links between ESG issues and the Company’s revenues, operating expenses, assets, liabilities, and cash flows. It identifies key risks and opportunities affecting financial performance and prioritizes their materiality based on the magnitude of their financial impact. The findings provide a robust foundation for strategic decision-making and resource allocation, while strengthening financial resilience and capacity for long-term value creation.

Financial Materiality Assessment Process

Financial indicator correlation

Suggestion collecting and verification

Through financial indicator mapping, management interviews, and cross‑departmental research, the Company clarifies the impact pathways and correlation mechanisms between each issue and specific financial indicators — including revenue, expenses, assets, liabilities, and cash flows. The Company gathers internal and external professional insights through internal management discussions, departmental surveys, stakeholder questionnaires, and thematic symposiums to verify and calibrate the comprehensiveness and accuracy of the assessment outcomes.

Impact identification and analysis

Materiality assessment and grading

Conclusion and application

Based on the probability of occurrence and the magnitude of financial impact associated with risks and opportunities, the Company maps out financial transmission pathways, identifies the financial risks and opportunities inherent in each issue, and establishes a list of key issues with substantial financial implications. Using a qualitative-led assessment approach supported by quantitative analysis, the Company conducts a comprehensive scoring of issues on a scale of 1 to 5 points. A materiality threshold of 3 points or higher is applied to determine financially material issues. Based on the final scoring results, we establish a financially material issue list, clarify the financial impact of each issue, and prioritize these issues. The results are integrated into the Company’s strategic planning and risk management framework to guide targeted resource allocation.

The Company comprehensively assesses relevant issues across the dual metrics of impact materiality and financial materiality, taking into account industry characteristics, the Company’s business profile, regulation developments, and the core concerns of stakeholders. Based on a weighted analysis of the assessment outcomes, the Company has finalized the identification of 19 material issues and developed the 2025 ESG Material Issues Matrix. This provides an evidence-based and systematic foundation for the formulation and implementation of the Company’s sustainability strategy.

JIHONG GROUP 2025 ESG MATERIALISSUES MATRIX

3 Sustainability Management

Jihong Group firmly recognizes sustainability as a critical engine driving long-term, stable growth and creating diversified value. The concept of sustainability has long been deeply embedded in all dimensions of corporate strategy and daily operations. The Company continuously enhances its ESG management system, rigorously manages ESG-related risks and opportunities, and endeavors to achieve synergistic win-win outcomes among corporate growth, social value, and environmental benefits. Through these efforts, the Company steadily strengthens sustainability governance capabilities and practical performance.

The Company establishes a tiered, efficient management structure with clear authorities and responsibilities. The Board of Directors serves as the supreme decision-making and oversight body for the ESG agenda, with full responsibility for reviewing sustainability strategies. The Strategy Committee under the Board is mandated to approve and provide ongoing supervision of material ESG -related matters. The ESG Decision-making Department is established to drive, coordinate, and administer the day-to-day implementation of ESG initiatives.

Jihong Group's ESG Management Framework

Board of Directors

• Authorize the Strategy Committee to approve and supervise ESG-related matters.

Strategy Committee

Develop ESG strategic plans, management structures, systems, strategies, and implementation rules to ensure policy implementation; Identify key ESG issues, develop relevant guidelines, and review ratings; Assess ESG risks and opportunities, monitor significant risks and develop response measures, as well as review and supervise the handling and rectification of relevant issues; Review ESG tasks and internal monitoring system, and provide recommendations on their suitability and effectiveness; Review ESG-related disclosure documents, including but not limited to annual ESG reports; Regularly report to the Board of Directors and provide ESG-related training and materials to ensure ESG governance capabilities.

ESG Decision-making Department

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

Upholding the core ESG vision of “Technology for Good, Stability for Long-term Growth,” the Company fully embeds the principles of sustainability into strategic planning and day-to-day operations while establishing a robust strategic implementation framework and well-defined execution roadmap. Guided by the governance principles of “integrating into corporate strategy, collaborating on business development, and aligning with global standards,” the Company has developed a comprehensive ESG management system, strategic objectives, performance mechanisms, and information disclosure framework. Sustainability requirements are systematically integrated into corporate governance and core business processes, ensuring the consistency and sustainability of ESG management practices.

Jihong Group's ESG Governance Principles

Integrating Into Corporate Strateg

From a strategic perspective, we integrate ESG responsibilities into the corporate development strategy to achieve unified deployment and coordinated advancement; We establish an ESG key indicator system that aligns with the characteristics of the enterprise, build a closed-loop management system for corporate ESG governance, and coordinate development in economic, social, and environmental aspects.

Collaborating On Business Development

We persist in integrating ESG management concepts into internal operations and external business outputs; We strengthen the vertical integration with various departments and branches to ensure the formation of an efficient and powerful ESG work network, achieving the close integration of the Company’s ESG responsibilities and business operations.

Aligning With Global Standards

In accordance with ESG international standards, national standards, regulatory requirements, and other relevant policies and initiatives, we advance the Company’s systematic, standard, and routine ESG management to align with global standards in aspects such as policy systems, management systems, process mechanisms, action measures, and performance management.

The Company conducts systematic risk and opportunity assessments for financially material issues, closely monitors evolving market trends, and formulates and implements targeted management measures to continuously strengthen the adaptability and responsiveness of ESG strategies. Combined with the industry’s characteristicsand the Company’s actual development status, wehave defined clear phased time horizons forassessing ESG-related risks and opportunities:short-term (by 2030), medium-term (by 2040) and longterm (by 2050).The Company has established a comprehensive strategy promotion framework and a well-defined implementation roadmap to advance the deep integration of ESG governance into core business operations, creating sustainable long-term value for all stakeholders.

ESG Risk/Opportunity Analysis at Jihong Group

At Jihong Group, the Strategy Committee is responsible for reviewing ESG risk and opportunity assessment findings. To enhance the standardisation and systematic oversight of ESG risk management, the Company fully integrates ESG risks into its existing risk management framework, and has established a closed-loop governance mechanism covering risk identification, risk assessment and risk response. Through institutionalised processes, regular monitoring and periodic optimisation, this mechanism enables dynamic oversight and long-term governance of ESG risks. It not only effectively mitigates risk exposure but also delivers structured support for the Company to identify and capitalise on sustainability opportunities, boosting resilience and long-term value creation capacity in complex environments.

Risk Response

Based on ESG risk assessment outcomes, the Company implements a tiered response mechanism and adopts multi-dimensional governance measures. The Company enforces management mechanisms for high-risk issues, applies control measures to medium-risk issues, and conducts routine monitoring and optimization for low-risk issues. For medium‑to‑high risk issues that may trigger emergencies, the Company develops specialized response procedures and control measures and formulates contingency plans tailored to risk characteristics, strengthening emergency response capabilities. On an annual basis, the Company conducts a systematic review of ESG risk management practices, assesses internal and external risk trends, and refines risk control measures in line with industry developments, driving the iteration of the ESG risk management system.

The Company institutionalizes the strategic integration and closed-loop management of key ESG issues. The Company establishes short-, medium-, and long-term targets for core ESG priorities, with clearly defined implementation pathways and accountable parties. Through an annual assessment mechanism, the Company consistently monitors progress, conducts gap analysis, and refines strategies to ensure the coordinated advancement of ESG governance and business growth, and to drive the effective delivery of sustainability goals.

Jihong Group's ESG Indicators and Targets Progress

4 Environment: Green Future

Jihong Group deeply implements the green development philosophy throughout the entire operational value chain, spanning green production, green office, climate change response, and ecological protection. The Group continuously strengthens green manufacturing capabilities, upholds the principles of energy conservation and emission reduction, builds an environmentally responsible enterprise, and delivers solid support for the green transformation of the industry.

In terms of green production, the Company continuously strengthens environmental management, optimizes resource utilization efficiency, maintains strict compliance with emission standards, and innovates green product design. These efforts promote the harmonious coexistence of operational activities and the environment, while enhancing green competitiveness.

4.1.1 Green Production

Jihong Group has established a threedimensional management structure, with the environmental management system as its core, the emergency management system as the guarantee, environmental protection facility management as the foundation, and environmental awareness cultivation as the support. Through this framework, the Group continuously enhances environmental management efficiency and risk control capabilities.

Environmental Management System

Jihong Group complies with relevant laws and regulations, such as the Law ofthe People’s Republicof Chinaon Environmental Protection,theLawof thePeople'sRepublicof Chinaon Environmental Impact Assessment, the Forest Law of the People's Republic of China.To reduce the environmental impact during production, the Company has also developed internal policies, including an Environmental Management System. We conduct internal inspections and external audits in line with the requirements of the ISO 14001 Environmental Management System standard to ensure the effective operation of our environmental management system. In 2025, all 10 production bases successfully obtained ISO 14001 certification, with no environmental violations recorded throughout the year. Among these, the Langfang factory and Hohhot factory were recognized as Provincial-Level Green Factories, while the Anhui facility was awarded Municipal-Level Green Factory status.

Emergency Management System

The Company has formulated an Environmental Protection Emergency Plan and established an environmental emergency response mechanism, covering organizational structure, responsibility allocation, response procedures, and resource deployment, to standardize the management and handling of environmental emergencies. The Company has set up an emergency response leadership team to coordinate accident assessment and disposal. Through regular emergency drills, we continuously enhance employees’ practical capabilities and our overall environmental risk control capacity. Meanwhile, we strictly adhere to the Classified Administration Catalogue of Environmental Impact Assessments for Construction Projects,and engage qualified professional institutions to conduct environmental impact assessments, implementing environmental risk control at the source.

Environmental Facility Management

The Company has formulated the Operating Procedures for Environmental Facilities, which define the responsibilities of all departments and personnel, and integrated environmental protection into the performance appraisal system to ensure clear accountability and effective implementation. The Company conducts regular inspection, maintenance and upkeep of environmental facilities, maintains complete equipment ledgers and operation records, and ensures an equipment integrity rate of 100% . Meanwhile, the Company continues to increase investment in environmental facilities to guarantee their stable and continuous operation, further enhance the efficiency of pollutant treatment, and achieve systematic improvements in environmental management performance.

Environmental Awareness Building

The Company is committed to incorporating environmental awareness into daily operations, laying a solid foundation for sustainability actions and building a related talent pipeline. Each production facility actively organizes environmental training, covering environmental regulations, cleaner production principles and facility operation skills as core components of regular training. Through a combination of internal lectures, external expert guidance and on-site practical training, the Company continuously strengthens the environmental literacy and professional capabilities of all employees.

ISO 14001 Environmental Management System Certification

4.1.2 Resource Management

The Company continuously optimizes resource allocation and utilization efficiency, proactively pursues energy conservation and emission reduction, enhances the energy management system, strengthens water resource management, and fully implements eco-friendly and sustainability strategies.

Energy Management

The Company strictly complies with applicable laws and regulations, including the Law ofthe People'sRepublicofChinaon Energy Conservation.Based onactual productionand operation,we established the Energy Conservation and Consumption Reduction Management System, Energy ConservationandConsumptionReductionOrganizationalManagementSystem,Energy Conservationand Emissions Reduction Management System,and Energy Conservation Management System.The Ningxia factory set a target to reduce energy consumption per unit by 20% . The Hohhot factory established an energy-saving management team to coordinate and advance relevant initiatives, systematically implement energy-saving technological upgrades, optimize production processes, and improve energy monitoring and recycling.

Ningxia Factory:

Energy management target: to reduce energy consumption per unit by 2 ( 0 ) %

The Company continues to optimize its energy mix, actively develop clean energy, and improve overall energy efficiency through process innovation and technological upgrading. Two production bases, located in Xiamen and Anhui, have installed photovoltaic power generation systems to effectively utilize renewable energy. In 2025, Anhui factory generated approximately 2.12 million kWh of photovoltaic electricity, achieving a carbon emission reduction of about 1,158 tCO2e (tons of carbon dioxide equivalent). The Xiamen factory generated approximately 2.29 million kWh of electricity annually, reducing carbon emissions by around 1,183 tCO2e. The stable operation of these photovoltaic projects has lowered the carbon footprint of production operations and steadily advanced green development initiatives.

Photovoltaic Power Generation System

Energy Consumption at Jihong Group

Water Resource Management

The Company strictly complies with applicable laws and regulations, including the Water Law ofthe People's Republic of China.The Company has formulated and refined the Water Conservation Management System and Water Resources Management Measures, clearly defining the responsibilities for water resources management. Each factory proactively implements institutional requirements. For instance, the Hohhot factory has established a water conservation management leading group and appointed a water resources administrator for daily monitoring and supervision. It adopts a multipronged approach encompassing management optimization, technological upgrading, and awareness promotion to ensure standardized and efficient water resources management. The Ningxia factory has continuously advanced water resources recycling. Wastewater that has been treated to meet discharge standards undergoes further purification for reclaimed water reuse, which is then applied to greening irrigation, equipment cleaning, and workshop floor washing. These efforts support the factory in achieving its water resources management target of raising the water reuse rate to above 85% .

Ningxia Factory:

Water management target: to raise the water reuse rate to above 85%

Water Resource Management Measures

Through the aforementioned initiatives, the Company has achieved phased progress in water resource management. Notably, the Hohhot factory has been successfully accredited as one of the Second Batch of Water-Saving Enterprises in Hohhot City for 2025. Moving forward, the Company will continue to explore innovative water-saving technologies, steadfastly advance the continuous improvement of water utilization efficiency, and contribute to the sustainable development of both the enterprise and the environment.

Water Use at Jihong Group

4.1.3 Emission Management

The Company is committed to building a green and low-carbon operation system, and has established a standardized emissions management mechanism covering key wastewater, waste gas, solid waste and noise. Such efforts effectively mitigate the environmental impact of production and operation activities, with a steadfast commitment to sustainability.

Emission Management Target

To ensure effective emissions management, the Company has set clear emissions management targets to uphold environmental compliance and drive continuous improvement across operations. The core target is to achieve stable and compliant emissions: ensuring that emissions of waste gas, wastewater, noise and other pollutants meet applicable national and local environmental standards, while attaining a 100% safe disposal rate for hazardous waste. To support the delivery of these targets, the Company has developed a detailed environmental monitoring plan, under which we conduct regular monitoring of major pollutants and track environmental performance in real time. In addition, the Company engages qualified third-party institutions to carry out professional environmental assessments. Based on the assessment findings, the Company timely formulates and implements targeted improvement measures, continuously enhancing environmental management capabilities and risk control level.

Emission management target: Ensuring that emissions of waste gas, wastewater, noise and other pollutants meet applicable national and local environmental standards, while attaining a 10% safe disposal rate for hazardous waste.

Waste Water

The Company strictly adheres to the Law of the People’s Republic of China on Water Pollution PreventionandControl andthe RegulationonUrbanDrainageand Sewage Treatment,and has established a Production Wastewater Treatment Management System. The Company adopts gridbased management, clarifies the safety management responsibilities of personnel in charge of sewage treatment stations, and integrates such responsibilities into the performance appraisal system to ensure compliant wastewater treatment and prevent the illegal discharge of untreated wastewater.

The Company is equipped with comprehensive wastewater treatment facilities, which adopt biochemical treatment, filtration, adsorption and other processes to treat both production wastewater and domestic sewage, ensuring that effluent quality meets discharge or reuse standards.

The Company’s production wastewater is treated through neutralization and sedimentation processes to meet relevant standards and is fully reused for on-site applications, including landscaping irrigation, equipment cleaning and workshop floor washing. This approach improves water utilization efficiency and achieves zero discharge of industrial wastewater. To ensure the long-term stable operation of the sewage treatment system, the wastewater management department conducts systematic cleaning and inspects key components for wear and tear every six months, in accordance with the actual operating conditions of the equipment.

Waste Water Emissions

Waste Gas

The Company strictly complies with the Law of the People’s Republic of China on Prevention and Control of Atmospheric Polution,and other relevant lawsand regulations,and has established a PreventionandControlSystemforWasteWaterWasteGasDustandSolidWastes.TheCompany conducts environmental impact assessments and discloses the relevant results to ensure full compliance with emission standards. In addition, the Company places emphasis on the effective treatment of exhaust emissions generated in enclosed production spaces. Through standardized installation of pollution control facilities and adoption of high-efficiency dust removal and filtration technologies, we achieve centralized treatment of exhaust gases. In line with the emission characteristics of different production processes, the Company implements differentiated treatment plans to ensure sustained compliance with national standards, minimizing the environmental impact of production and operation activities.

Waste Gas Treatment for Different Processes

Waste Gas Emissions

Solid Waste

The Company strictly complies with the Law of the People’s Republic of China on Environmental Protection,theLawofthePeople'sRepublicof China onthePreventionandControl of Environmental PollutionbySolid Wastes,andotherrelevant lawsandregulations.Basedon production needs, the Company has established a Hazardous Waste Management System. The Company adheres to the fundamental principles of resource utilization, reduction, and harmless treatment in waste management, setting clear waste management targets to ensure the compliant handling of all solid wastes.

The Company implements classified collection, storage, and treatment of all types of solid waste generated during production. General solid waste is sorted and collected before being transferred to professional service providers for standardized disposal. For hazardous waste, the Company formulates and submits management plans in accordance with the requirements of environmental authorities. Each department is responsible for categorized collection, record-keeping, and filing, with regular transfer to designated departments for centralized storage in dedicated warehouses, ensuring segregated storage and regulated transportation.

The Company appoints dedicated personnel to oversee the full lifecycle of hazardous waste, including storage, inventory, and transfer, and collaborates with qualified professional institutions to ensure compliant disposal. Meanwhile, a complete management ledger is maintained to accurately record the generation, storage, transfer, and disposal of hazardous waste, enabling full-process traceability and standardized management.

To minimize waste generation at the source, the Company continuously advances cleaner production initiatives. The Company evaluates and optimizes production processes to eliminate redundant procedures and material waste. Furthermore, while ensuring product quality, the Company prioritizes the use of ecofriendly raw materials, including renewable pulp, water-based, environmentally friendly inks, and biodegradable adhesives. The Company strives to achieve the dual objectives of source pollution reduction and enhanced resource efficiency, driving the transition toward a greener production model.

Solid Waste Generation

Noise Management

The Company attaches significant importance to noise control throughout production to ensure that noise at the boundary complies with environmental standards. For high-noise equipment, including air compressors, fans and printing machines, the Company has implemented comprehensive noise-reduction measures such as installing shock absorbers, mufflers and acoustic enclosures. These measures effectively reduce noise generated by equipment during operation, enabling the Company to fulfill environmental responsibilities.

4.1.4 Green Products

Jihong Group is committed to the research and development of eco-friendly packaging materials and has earned green product certification for express packaging. The Company actively works to reduce plastic use and minimize material consumption, providing high-value sustainable solutions to customers.

Green Product Highlight Cases

An automated conveying device and method for producing multi-wall highstrength corrugated cardboard with Vshaped flute

y implementing the optimization initiative to reduce the basis weight of outer linerboard and inner nerboard from 200g to 170g, the Company expects to lower the raw paper cost per square meter by pproximately 3% -5% . While maintaining equivalent product strength and performance, the initiative as achieved product lightweighting, helping to reduce the consumption of natural fiber resources such s wood pulp. Meanwhile, the adoption of eco-friendly modified starch adhesive delivers extremely low VOC emissions. These measures not only facilitate the transformation of the corrugated packaging ndustry toward high-performance, lightweight, and green development but also elevate the overall echnological level of the sector.

Cardboard packaging box

Against the backdrop of massive consumption in logistics packaging, the Company has launched a patented green packaging box. At its core, the product embodies a whole-life-cycle green philosophy: raw materials are biodegradable and renewable, capable of complete decomposition within approximately six months under composting conditions; production adheres to environmental compliance standards and employs energy-saving and water-saving processes; and resource consumption is reduced through lightweight design. The materials used are safe and non-toxic, with environmentally friendly water-based inks ensuring both human health and environmental protection. This product fully meets national green standards, and the Company has initiated green product certification to lead the industry toward an efficient, circular, and low-carbon future.

Use of Packaging Materials at Jihong Group

The Company deeply integrates the concept of green office into operation management, and promotes energy conservation, emission reduction, and efficient resource utilization through institutional norms, technological upgrades, and cultural guidance.

Green Office Practice

4.3.1 Governance

The Company actively aligns with the national “dual carbon” goals, integrates climate change response deeply into the ESG governance framework, and establishes a three-tiered governance structure comprising the Board of Directors, the Strategy Committee, and the ESG Decision-Making Department. The Company evaluates the potential impacts of climate-related risks—including extreme weather events, policy and regulatory changes, and market transitions—on business operations, and develops and implements targeted adaptation and mitigation strategies.The company has incorporated environmental indicators into the management performance appraisal system to ensure the effective implementation of climate change targets.

Climate Change Governance Structure at Jihong Group

4.3.2 Strategy1

The Company has fully mainstreamed climate change action into its long-term development plan, while formulating and implementing the Action Plan for Carbon Peaking and Carbon Neutrality of Jihong, along with a carbon reduction roadmap. The Company identifies climate-related risks based on actual production and operations and develops targeted response measures. Meanwhile, the Company proactively captures climaterelated opportunities and explores sustainable packaging solutions within the paper-based FMCG packaging business. Through strategic adjustments, the Company strives to achieve a win-win between business growth and sustainable development, continuously enhancing market competitiveness. In 2025, the Company promoted the use of clean energy alternatives, especially PV generation projects, by investing RMB3.436 million in distributed photovoltaic projects.

Climate Risk Identification and Response

1.The company is temporarily unable to obtain the relevant information onable cost or effort, so the company applies the reasonable information waiver clause in the Climate Disclosure Implementatio Guidelines of the Hong Kong Stock Exchange. We plan to conduct scenario analysis in the coming years.

Climate Risk Identification and Response

4.3.3 Risk Management

To effectively address climate change, the Company has established a sound climate risk management system, which systematically identifies and assesses both physical and transition risks, and develops targeted response measures. We have formulated dedicated emergency response plans for flood prevention, typhoon protection, and periods of severe pollution, with the aim of minimizing physical risks and ensuring business continuity.

4.3.4 Indicators and Targets2

The Company regularly discloses greenhouse gas (GHG) emissions data to ensure transparency and comparability. To date, the Company has completed carbon verification for all ten factories, providing a solid data foundation for advancing carbon reduction targets, identifying emission hotspots, and pinpointing risk concentrations. We set a target to reduce GHG emissions intensity by 5% in 2025 compared to 2024, and we have achieved this target on schedule.The Company reduces its carbon emissions through proactive emission reduction measures and has not yet implemented internal carbon pricing for management purposes.

GHG Emissions

2.Regarding climate-related financial impacts, cross-sectoral indicators and Scope 3 greenhouse gas emissions, the underlying data collection is still in progress and the supporting information is incomplete. In accordance with the reasonable information exemption clause in the Hong Kong Stock Exchange’s Implementation Guidelines on Climate-related Financial Disclosures, the Company does not disclose cross-sectoral indicators and Scope 3 GHG data in this report.

3.GHG accounting is presented in terms of carbon dioxide equivalent (CO2e) in accordance with the Announcement on the Issuance of Carbon Dioxide Emission Factors for Electricity in 2023 issued by the Ministry of Ecology and Environment of the People's Republic of China and the IPCC 2006 Revised Guide to National GHG Inventories 2019 issued by the Intergovernmental Panel on Climate Change (IPCC).

To effectively fulfill the responsibility of biodiversity conservation, Jihong Group complies with the Environmental Protection Law of the People’s Republic of China, the Forest Law of the People’s Republic of China, the Law of the People’s Republic of China on the Protection of Wildlife, and other relevant laws and regulations, which standardize biodiversity protection processes.

Prior to project construction, the Company strictly implements the environmental impact assessment system and follows the risk management process of identification, mitigation, transfer, acceptance, and control. Through scientific assessment, the Company proactively avoids and minimizes potential impacts on biodiversity. In parallel, the Company has established a dynamic optimization mechanism to continuously improve factory management policies and conservation measures based on assessment outcomes, driving biodiversity conservation efforts toward a more systematic and refined approach.

Biodiversity Protection Management Process

5 Social: Giving Back to Society

In pursuing sustainable development, the social dimension has long been a fundamental cornerstone for the Company to build trust and create shared value with all stakeholders. The commitment to social responsibility is reflected not only in product innovation and service optimization but also in every aspect of supply chain collaboration, employee development, health and safety management, and community prosperity. The Company strives to build a sustainable future together with all sectors of society.

Responsible product management represents not only a source of corporate competitiveness but also a profound commitment to society. Jihong Group is dedicated to providing safe, reliable, and sustainable products and services through a full life cycle quality management system, a customercentric service mechanism, stringent information security safeguards, continuous technological innovation and R&D, and systematic intellectual property protection. In doing so, we create long-term value for our customers and contribute to social progress through technological strength.

5.1.1 Quality Management

Quality Management System

Jihong Group strictly complies with the Product Quality Law of the People's Republic of China and other relevant laws and regulations. Based on its operational needs, the Company has established a quality management system and formulated over 30 internal management policies and procedures, including the Quality Risk Assessment and Control Procedures, the Glass and Fragile Items Control Measures,and the Product Recalland Simulated Recall Control Procedures,which define clear standards and specifications for various quality inspections, continuously improving product quality.

To continuously enhance the product quality management system, the Company has formulated quality and safety policies and goals, and established a quality management structure to fully ensure product quality and safety. Meanwhile, stringent controls are implemented across all critical stages of the product lifecycle, ensuring that product quality complies with relevant regulatory and systematic standards and consistently meets customer requirements. In 2025, the Company recorded zero product recalls and no major safety or quality incidents related to products and services.

Quality and Safety Policies and Goals at Jihong Group

Quality Management Certification

As of the end of the reporting period, all ten production bases of Jihong Group have obtained ISO 9001 Quality Management System certification, establishing a systematic and standardized comprehensive management guarantee and laying a solid foundation for the continuous improvement of product quality.

10 production bases have obtained the ISO 9001 Quality Management System certification

2 production bases have received BRCGS A+ grade certification, and 1 production base has received BRCGS A grade certification

5 production bases have completed FSC certification

2 bases completed FSC trade certification

Jihong Group’s Quality Management Certificates

Quality Management Measures

To comprehensively enhance the efficiency and effectiveness of quality management, the Company is advancing the digital transformation of its quality management system. By integrating ERP4 and MES5 systems, we have established a full closed-loop management chain covering business operations and production execution, realizing full transparency of the production process and refined quality traceability. Against this foundation, the Company has continued to implement the one-codeper-box whole-process labeling management system, enabling precise traceability and efficient control from raw material procurement to finished product delivery. Such practices continuously elevate the sophistication of quality management and deliver more reliable product quality assurance to customers.

The Company has established a cross-border product quality management system covering the full cycle of sourcing, warehousing and logistics, which systematically safeguards product quality and customer experience for the e-commerce business. In the sourcing stage, the Company focuses on product quality, market adaptability and consumer demand, and implements strict control over product selection criteria. In the warehousing stage, refined warehouse management and environmental control are adopted to ensure safe storage and stable quality of goods. In the logistics stage, strict performance supervision is imposed on logistics carriers to guarantee product integrity throughout the transportation process.

Quality Management Measures for Cross-Border Social E-Commerce Business

Through centralized management of calibration established a sustainable cost-saving mechanism within qualit control procedures. This has delivered tangible results in cost reduction an efficiency improvement, effectively enhancing the economic efficiency of quality management.

Cost Reduction and Efficiency Improvement Measures at Jihong Group

On July 18, 2025, at the McDonald's Supplier Quality Forum, Xiaogan Factory won the "Class-A Quality Medal."

On September 16, 2025, Xiaogan Factory and Langfang Factory were both selected as the "Class-A Quality Award" for H1 2025.

On November 6, 2025, at the McDonald's Global Supplier Quality Conference in Indonesia, Xiaogan Factory and Langfang Factory respectively won the first and second prizes of the "Food Safety Quality Culture Tour", and the Company won the Excellent Team Award for Food Safety Culture.

Quality Manag ement Awards

Quality Culture Building

To build a sound quality management system, the Company continuously promotes a strong quality culture. Through Monthly Quality Meetings and Weekly Quality Review Meetings, the Company systematically reviews and plans quality objectives and performance. In addition, the Company organized management personnel from all production facilities to complete BRCGS6 7.0 certification training, and carried out selection and recognition activities to enhance quality awareness and professional competence among all employees. These initiatives strengthen employees’ motivation and sense of honor in participating in quality improvement, and facilitate the integration of quality culture into daily operations and practices.

Case: Monthly Quality Meeting

To continuously enhance product quality and customer satisfaction, the Company organizes monthly quality meetings across three FCP factories. These meetings bring together management and key machine operators from each facility to jointly review quality performance against the previous month’s targets, analyze typical quality issues, and formulate improvement and preventive measures. Through in-depth discussion, the meetings strengthen team-wide quality awareness, promote the effective implementation of quality control mechanisms in daily operations, and drive the continuous optimization of product quality.

Activities at Monthly Quality Meetings

Case: Weekly Quality Review Meetings

The Quality Department holds weekly quality review meetings to focus on quality issues identified in the previous week. At each meeting, the responsible department leads machine operator teams in discussion, develops detailed improvement plans, and assigns supervisors to follow up and report progress. Regular weekly reviews enable timely rectification and closed-loop management of quality issues, support ongoing refinement of production processes, and further elevate product quality and customer satisfaction.

Case: BRCGS 7.0 Standard Specialized Training

The Company has arranged unified specialized training on the BRCGS 7.0 standard for all management personnel at food packaging factories. A total of 42 employees participated, all of whom passed the assessment and obtained internal auditor certification. This demonstrates that the Company has established a professional, full-coverage internal quality audit team.

Case: Quality Awarding Conference

To further strengthen quality awareness among all employees, the Company regularly recognizes and publicizes outstanding performance by collectives and individuals in quality management. By setting benchmarks and commending advanced examples, the Company motivates all employees to learn from excellence, embed high standards and strict requirements into every aspect of daily operations, and jointly strengthen the foundation of quality culture.

5.1.2 Customer Service

Jihong Group adheres to a customer-centric approach, focusing on enhancing user experience. The Company is committed to delivering a high-quality service experience covering the entire pre-sales, sales, and after-sales process. To ensure standardized and efficient services, the Company has formulated internal management documents, including the Customer Service Process Management Procedures and the Customer optimize service quality, and improve customer satisfaction.

Customer Complaint Handling

Jihong Group consistently regards customer feedback as a vital source of value creation. The Group has formulated the Customer Complaint Handling Operation Process (For Sales Segment)to clarify responsibilities and standards for each procedure, and established a systematic, hierarchical, and cross-departmental collaborative customer complaint management system. With the goal of rapid response, fair handling, and thorough improvement, the system drives internal process optimization to reduce the customer complaint rate at the source and enhance customer satisfaction.

The Company has established a robust customer complaint handling process deeply integrated with multiple business processes, ensuring full traceability of issues and clear assignment of accountability. Corrective ctions are effectively embedded into relevant operational procedures, forming closed-loop management. To allocate resources rationally and respond promptly to major concerns, the Company has implemented a fourvel customer complaint rating system (Levels mathsf A - mathsf D ) , with differentiated response times and processing requirements for different levels to ensure priority handling of key issues.

Customer Complaint Handling Process at Jihong Group

Receive Customer Complaints

Assign a Department to Follow Up

Handle Customer Complaints

When there is a customer complaint, the Company promptly communicates with customers and handles complaints, follows up on internal issue handling, and responds to the customer.

The Company analyses causes and responsibilities as soon as possible after receiving customer complaint information. The Company provides professional investigation reports and feedback on corrective measures to customers in collaboration with the relevant responsible departments. The company communicates with and coordinates with customers to avoid the risk of returns. The Company arranges personnel for rework, follow-up, or selection at the customer's site. The Company initiates the standardized return process if necessary.

In 2025, the Company further optimized the customer complaint handling process and strengthened systematic training for relevant personnel. We intensified root-cause analysis of customer complaints, promoting internal improvement by identifying the underlying causes. A customer complaint rate analysis dashboard has been developed to visualize and analyze complaint data from multiple dimensions, monitor trends dynamically, and accurately pinpoint high-frequency and fundamental problems. This ensures scientific and forward-looking decision-making in quality management and customer service, reducing customer complaints at the source. In 2025, the Company received 35 customer complaints, with a 100% resolution rate.

Case：Professional Competence Training for Brand Customer Service

On November 21, 2025, the Company organized a special training session entitled Order Types and Platform Differentiated Service Processes. The training was designed for all customer service staff, aiming to systematically explain and consolidate standardized, scenario-based service processes and response strategies applicable to different order types and the differentiated characteristics of various e-commerce platforms. Through this training, the customer service team further understood service standards and key communication points in diverse business scenarios, strengthened their professional capabilities in handling complex orders and platform-specific issues, and effectively reduced the customer complaint rate.

Training on the Site

Product Recall Mechanism

The Company strictly follows key quality management documents, including the Product Recall Procedure, the Corrective and Preventive Measures Management Procedure, the Quality Non-Conformance improves the overall quality management level. Under the leadership of the General Manager, the Company has established a cross-departmental Product Recall Task Force composed of heads of relevant departments to support and implement product recall activities. In this way, a complete closed-loop management mechanism is formed, covering recall execution, rectification, and accountability implementation.

Product Recall Mechanism

Improve Service Quality

Jihong Group continuously optimizes its end-to-end customer service experience through the ShopPlus website platform and intelligent marketing tools, and has established a systematic service guarantee mechanism. The Company has formulated the Giikin Customer Operations After-Sales Service Policy to clarify and standardize the return and exchange process, safeguarding customer rights and interests. In response to order rejections, the Company has established a daily follow-up and analysis mechanism to conduct in-depth research on the causes of rejection. On this basis, targeted improvement measures are developed to drive continuous optimization of service processes and product experience, effectively enhancing customer satisfaction and willingness to repurchase.

In 2025, the Company systematically upgraded the customer service experience by expanding service dimensions and optimizing communication mechanisms. The Company provides customers with professional market research and customized solutions, carries out targeted process and technology training, and establishes an efficient R&D and sampling channel. Relying on the Official WeChat Account, the Company achieves efficient, convenient real-time communication and rapid response. These integrated services and technical support have significantly improved the quality and responsiveness of customer service, as well as overall customer satisfaction.

User Experience Enhancement Measures for Paper-Based FMCG Packaging Solutions Business

Customer Satisfaction Survey

The Company always places customer satisfaction at the core of its operations. Through the strict implementation of the Customer Maintenance Management System, the Company carries out systematic and regular customer follow-ups and satisfaction surveys. The Company not only fully collects customer feedback, but also focuses on indepth root-cause analysis of issues, and formulates targeted and actionable improvement plans accordingly to promote closed-loop implementation, so as to enhance service quality and customer experience.

In 2025, the Company conducted a customer satisfaction survey, achieving a customer satisfaction rate of 95.90%

Customer Satisfaction Survey Measures

5.1.3 Information Security

Jihong Group fully embeds security concepts into the operating system, adhering to the “security and prevention first, balancing management and technologies, and taking comprehensive measures to prevent risks” approach. The Company has systematically established a comprehensive protection system covering networks, data, and applications. The Company continues to optimize our systems and processes, strengthen technical support, and enhance security awareness among all employees. The Company is committed to building a safe, reliable, and sustainable digital operating environment for customers, partners, and the Company itself, establishing solid security for the highquality development.

Information Security Management System

The Company strictly complies with the Regulations of the People’s Republic of China on Protecting the Safety of Computer Information Systems,the Basic Requirements for Classified Protectionof InformationSystemSecurity,the Informationsystemsecuritymanagement requirements,and other relevant laws and regulations. To strengthen its network and data security framework, the Company has developed a set of internal policies, including the Personal InformationProtectionPolicy,theCybersecurityManagementPolicy,thePublicCloudSecurity ManagementPolicy,theCustomer InformationConfidentialityManagementPolicy,and the NetworkandData Security IncidentManagementand EmergencyResponse Plan.Thesepolicies comprehensively promote the effective implementation of information security management.

Jihong Group positions information security as a strategic priority for development and is committed to building a scientific, comprehensive, and efficient information security governance system. The Company has set up a multi-level management structure led by the Information Security Committee, with coordinated operations among the Information Security Management Team, Information Security Technology Team, and Information Security Audit Team. With clear and closely linked responsibilities, the teams form a closed-loop process covering strategy formulation, technical implementation, and independent supervision. This ensures the systematic implementation and stable operation of information security measures, providing a solid guarantee for business operations and customer data security.

Information Security Management Structure at Jihong Group

Information Security Management Mechanism

To establish systematic and forward-looking information security defense, the Company has implemented an information security risk management mechanism covering risk identification, risk assessment, and risk response. This has enhanced information security protection capabilities and provided a solid guarantee for stable business operations and the security of data assets.

Information Security Risk Management Mechanism

Risk Identification: Utilize advanced risk identification tools and methods to systematically identify internal and external potential information security threats, ensuring full coverage of risk assessment.

Risk Management Mechanism

Risk Assessment: Apply scientific assessment models to conduct qualitative and quantitative analysis of identified risks to accurately assess the likelihood and potential impact of risk occurrence, and achieve classified risk management.

Risk Respons: Develop and implement differentiated response strategies based on risk assessments, including risk avoidance, transfer, mitigation, and acceptance, to ensure rapid and orderly response to risk events.

Through a series of measures, including strengthened access control, enhanced data encryption and backup requirements, regular information security monitoring and auditing, standardized emergency response procedures, and comprehensive virus prevention, the Company has effectively consolidated information security defense and fully safeguarded the security of data and information systems.

Information Security Management Measures

Case: Information Security Attack-and-defense Drill

In 2025, against the backdrop of accelerated digital transformation, the Company successfully conducted three rounds of information security attack-and-defense drills on the Alibaba Cloud platform, focusing on three core scenarios: external penetration, internal control failure, and emerging threats. By simulating external hacker penetration attacks on core business systems, internal network infections caused by improper employee operations, as well as DDoS attacks and supply chain risks targeting cloud platforms, the Company implemented a series of practical response measures. These drills effectively strengthened the overall emergency response capabilities of all employees. A total of 56 system vulnerabilities were rectified, the emergency response time was shortened by 50% , and the rate of employees recognizing phishing emails increased to over 85% . The Company has comprehensively optimized its technical protection system, employee security awareness, and management mechanisms, which have significantly enhanced overall information security defense capabilities.

Information Security Management Training

The Company attaches great importance to building an information security culture and has formulated an annual information security training plan. A systematic and highly targeted training curriculum has been designed based on the business needs of employees in different positions and at various levels, aiming to comprehensively improve the information security awareness and capabilities of all employees. We conduct regular training and simulation exercises. Through the Cloud Academy platform, the Company organizes new employees to complete security courses such as the Office Security Protection Guide via Giikin Academy, followed by online assessments. The Company promotes security knowledge in a systematic manner and incorporates real case studies, which effectively enhance employees’ prevention awareness and practical response capabilities.

Information Security Training

To foster a strong safety culture across the organization, the Company has adopted a variety of initiatives, including launching safety awards and organizing safety knowledge competitions, to boost engagement among all employees and embed safety awareness into daily operations and team activities.

Safety Culture Building

5.1.4 Innovation and R&D

Jihong Group regards technological innovation as the core engine of development and continuously deepens the application and empowerment of technology in digital operations. The Company has established internal management systems, including the Innovation Management System and strictly follows the New Product Design and Development Management Procedure. The Company has comprehensively deployed cuttingedge fields such as cross-border social e-commerce and intelligent systems, and built differentiated competitive advantages through technological capabilities. In 2025, the Company spent RMB 136.10 million on R&D, accounting for 2.02% of operating revenue. The Company employed 602 R&D personnel, representing 12.66% of the total workforce. We are committed to building an integrated service ecosystem, continuously meeting diverse customer needs with end-to-end response capabilities, and promoting the continuous business structure upgrading.

Innovation and R&D Strategy

With “data-centric and technology-driven” as a strategic focus, and based on the dual-engine-driven business model of the packaging business and cross-border e-commerce, the Company has achieved a strategic upgrade from “technology empowerment” to “intelligent ecosystem”. Focusing on core technologies including artificial intelligence, big data and cloud computing, the Company has systematically built nine key technology systems covering intelligent video processing, intelligent image generation, intelligent marketing, risk control detection and other fields, forming end-to-end digital operation capabilities covering the front, middle and back ends of the business.

In 2025, the Company further increased R&D investment and achieved breakthroughs in AI middleware, multimodal large model applications, intelligent systems and other fields. The accuracy of video multimodal search reached more than 90% , the availability of image translation exceeded 95% , and the accuracy of knowledge base Q&A exceeded 95% . At present, relevant technologies have been widely applied in content generation, advertising, order fulfillment, warehousing and logistics, reducing operating costs, improving business efficiency and continuously optimizing the end-to-end user experience.

Intelligent E-commerce

Driven by data and artificial intelligence, the Company fully empowers marketing and operational links to support digital transformation and sustainable growth. The Company continues to deepen the “Goods Discovering People” business model, using AI algorithms to conduct in-depth analysis of overseas markets, accurately build user profiles, and develop differentiated strategies based on a value hierarchy system to precisely reach target users through multiple channels. Meanwhile, the Company has established a complete performance data collection and evaluation mechanism, realizing full-process data-driven and intelligent optimization from insight, outreach and conversion to iteration, so as to promote the high-quality development of the cross-border e-commerce business.

Jihong Group deeply integrates the social media ecosystem with online shopping scenarios, establishing an agile operation model of “matching goods to target customers”. The Group has built systematic competitive advantages in key areas, including marketing accuracy, operational intelligence, and supply chain agility. This model not only reshapes the logic of e-commerce operations but also establishes differentiated barriers for the Company’s sustainable growth.

In 2025, Jihong Group continued to enhance the development of its ecommerce system by upgrading and optimizing its platform cockpit dashboard, the Star Ring Nexus Pro expert collaboration system, and the Amazon intelligent AI operating system. The Group is committed to improving business efficiency and competitiveness through technological empowerment, achieving the integration of efficiency enhancement and resource conservation.

Goods

• Utilize an AI-powered product selection platform to conduct precise product selection through big data.

Discovering

• Leverage social networks such as Meta, Google, and TikTok as marketing channels. • Implement targeted marketing based on big data algorithms.

People

• Accumulate a massive user base through the integration of mobile internet and social networks. Apply user-centric product selection strategies, leveraging intelligent analysis of user profiles to precisely match product tags.

Jihong Group’s Intelligent Model Updates

Smart Warehousing

Jihong Group actively builds an intelligent integrated warehousing system, with intelligent scheduling and data collaboration as its core. Through comprehensive digital transformation and continuous empowerment of traditional warehousing operations, the system optimizes the efficiency of core links, including warehousing operations, inventory management, logistics sorting, and distribution tracking. This achieves end-to-end supply chain visibility and controllability, improves the stability and timeliness of order fulfillment, and significantly enhances the shopping experience and satisfaction of end consumers.

Inventory Stocking Model

The implementation of the digital stocking model can significantly increase warehouse turnover rates. It can reduce inventory backlog and ensure a smooth transition of products from the warehouse to the market, which significantly enhances the efficiency and agility of the supply chain.

Digital Store

By using event tracking on our online store, we can collect user behavior data to better understand user needs and preferences. This allows us to improve our store’s user interface and shopping experience. By analyzing user behavior data, our digital store can recommend products that are tailored to individual user preferences. This helps users easily discover products they like and receive a better shopping experience.

Warehouse Management System

Our self-developed warehouse management system implements a “one product, one code” management policy for all inventory items. The system allocates each item to its designated storage location and updates the inventory records in real-time. The system is equipped with intelligent matching and product distribution capabilities to quickly prepare and deliver orders while reducing the risk of shipping errors. The system can automatically intercept abnormal orders, and relevant personnel will take swift action to ensure the problem is resolved in a timely manner.

Intelligent Picking System

Our picking process is automated and intelligent. Our warehouse system automatically generates the optimal picking path, product location, and product information upon receiving an order, and sends the data to the picker’s PDA device. This system has made the goods-picking process much more convenient and efficient.

Automatic Weighing System

Our intelligent weight and size measurement system can rapidly and accurately assess the weight and size of packages and provide precise logistics data to logistics and warehouse management teams.

Unpacking and Packing Device

We use an automatic packing device to streamline our order processing and improve the quality, efficiency, and cost-effectiveness of our packaging.

In 2025, the Company closely aligned efforts with the goals of intelligence and lean management in warehousing and logistics, continuing to drive system optimization and model innovation.

Intelligent Warehousing Updates at Jihong Group

Innovative Packaging

The Company takes innovation as its core driving force and continuously promotes the value-oriented and systematic upgrading of the packaging business. With graphic design, solution optimization, and marketing planning as the core pillars, the Company deeply integrates into the fast-moving consumer goods (FMCG) market, accurately responding to and leading consumers’ daily needs. For world-renowned FMCG customers, the Company provides customized packaging solutions covering a full range of categories and multiple scenarios, including color box packaging, eco-friendly food packaging color cartons, eco-friendly tote bags, and bundled packaging.

By establishing a one-stop supply chain service system covering planning, design, production, and sales support, the Company is committed to providing customers with prehensive packaging solutions that integrate market foresight and brand performance, empowering brands to achieve value enhancement and sustainable growth.

One-Stop Packaging Services at Jihong Group

Innovative Collaboration

In 2025, the Company won the Second Prize in the “China Competition of Creative Design Packaging” for outstanding creativity and professional expertise in packaging design. This award not only recognizes the Company’s design and innovation capabilities but also reflects its professional achievements in continuously pursuing the integration of aesthetics, functionality, and market value in packaging solutions.

The Company has always adhered to the core values of “responsibility, innovation, and achievement”. The Company actively integrates internal and external scientific research resources, establishes in-depth collaborative partnerships with teams, universities, industry associations, and stakeholders across the industrial chain, and jointly builds an open and innovative technology ecosystem. Through continuous efforts in advancing technological exchanges, resource sharing, and joint R&D, the Company is committed to gathering multi-party expertise to jointly shape a blueprint for sustainability within the industry.

In terms of industry-university-research cooperation, the Company has further deepened strategic collaboration with universities. The Company has successively established industry-university-research cooperation bases with several institutions, including Anhui University, the School of Fine Arts at Ningxia Normal University, and the Beijing Institute of Graphic Communication, focusing on joint technological breakthroughs and the cultivation of high-end talents. These efforts also inject sustained impetus into industrial innovation.

Case: Beijing Institute of Graphic Communication and Hohhot Jihong Printing and Packaging Co., Ltd. Jointly Establish an Internship and Practical Teaching Base

On July 29, 2025, Zhang Xin, Secretary of the Party Committee of Beijing Institute of Graphic Communication, and Chen Dan, Vice President, visited Hohhot Jihong Printing and Packaging Co., Ltd. They held in-depth discussions with Lin Guoliang, General Manager of Hohhot Jihong, and other representatives on student internship base building, joint talent cultivation, industry-university-research collaborative innovation and other key topics. Both parties agreed to jointly establish an internship and practical teaching base, and planned to set up the “Inner Mongolia Printing and Packaging Research Center”. Through the “government-industry-university” Coordination mechanism, the two sides would advance research on printing technologies and the transformation of scientific and technological achievements. This cooperation would further deepen collaboration in talent development, technological research and industrial upgrading, and jointly promote the digital and intelligent transformation and sustainable development of the printing industry.

University-Enterprise Cooperation Conference

In addition, relying on its long-term technological and practical experience in packaging and printing, the Company actively participates in the development of industry standards, and promotes industrial standardization, innovation and upgrading with professional expertise. In 2025, the Company participated in the formulation of several industry standards, including Assessment Requirements for Quality Grading and Forerunner—Bundle Packaging and Graphic Technology—Process Control for the Production flf important references to ensure the scientificity and applicability of the standards, supporting the industry’s continued development toward greater standardization and efficiency.

Innovation Achievements

Technology Ethics

Innovation Achievements 2025 at Jihong Group

Giikin (Zhengzhou) Digital Technology Co., Ltd. won 2025 Data Element X Competition (Henan Division/Section) on September 8, 2025. The project was Research and Application of Intelligent Product Selection and Intelligent Recommendation System in the category of commercial circulation

In the e-commerce business sector, the Company attaches great importance to ethical issues arising from the application of artificial intelligence (AI) technology. Guided by the core principles of peopleoriented, safe and controllable, fair and just, transparent and explainable, the Company has formulated a series of internal management systems, including the Code of Ethics for AI Applications, Data Security and Privacy ProtectionManagementMeasures,and Algorithm Fairness Review Process. These systems ensure that Al systems meet requirements in terms of fairness and non-discrimination, transparency and explainability, data security and privacy protection, controllability and reliability, as well as cross-cultural awareness and social responsibility.

2025年湖北省技术先进型服务企业 拟认定清单

To ensure the effective implementation of these principles, the Company has established a Technology Ethics (Review) Committee, which is responsible for formulating, supervising, and enforcing the Group’s technology ethics policies. The Committee conducts independent and professional ethical reviews of high-risk AI projects to ensure that they comply with ethical principles throughout their entire lifecycle, from project initiation, R&D, and deployment to decommissioning. The Company adopts a zero-tolerance attitude toward any violation of technology ethics and has established clear accountability and disciplinary mechanisms.

The Company received the Advanced Intelligent Factory award from the Department of Industry and Information Technology of Inner Mongolia Autonomous Region in May 2025

On August 8, 2025, as announced by the Department of Science and Technology of Hubei Province, the Company

was awarded the title of Advanced Technology Service Enterprise in Hubei Province

5.1.5 Intellectual Property Protection

Jihong Group strictly complies with the Copyright Law of the People’s Republic of China and the Patent Law of the People’s Republic of China, establishing policies such as the High-Tech Enterprise Management System, the Reward System for the Application of R&D Results and the Management System for High-Tech ProjectsThese policies form a comprehensive intellectual property protection framework and an innovation incentive mechanism, ensuring the application of R&D achievements. In 2024, the Company filed 90 new patent applications, of which 36 were approved, and obtained 44 new software copyrights. As of the end of 2025the Company has secured 445 approved patents. To build a sound intellectual property management system, the Company has systematically established a full-process management and prevention mechanism from two dimensions: internal protection and external risk prevention.

Intellectual Property Management System at Jihong Group

In 2025, the Company introduced the Science and Technology Innovation Space (Professional Edition) – Science and Technology Innovation Space System Service V1.0 and adopted big data technology to establish a full-cycle intellectual property infringement prevention system covering the pre‑R&D, in‑R&D, and post‑R&D stages. As of the end of the reporting period, there were no infringements on third‑party intellectual property rights in the Company. The overall prevention system has been operating effectively, providing a reliable safeguard for sustainable innovation.

Jihong Group’s Intellectual Property Infringement Prevention System

Jihong Group places great emphasis on sustainable supply chain development, implementing a stranded supplier lifecycle management through policies such as the uple Agrent coordinate supply chain development and enhance sustainability.

5.2.1 Supplier Admission and Evaluation

The Company has established a complete supplier management process focusing on key areas, including supplier admission, assessment of cooperation, routine management, and withdrawal mechanisms, so as to standardize full-cycle supplier management from introduction to collaboration. The relevant procedures cover supplier qualification review, cooperation supervision, and performance evaluation, ensuring systematic and effective implementation of supplier management.

Supplier Lifecycle Management Process

Number of Suppliers in 2025

5.2.2 Supply Chain ESG Management

Jihong Group integrates environmental and social responsibility requirements into the entire supply chain management process, focusing on key aspects including supplier admission, cooperation evaluation, and performance management, to continuously identify and control environmental and social risks across the supply chain. In supplier selection and cooperation, the Company not only focuses on product quality and supply capacity, but also comprehensively reviews suppliers’ performance in compliance management, environmental protection, and labor rights protection. The Company prefers to establish partnerships with suppliers that possess a sound ESG management foundation and stable performance.

During supplier cooperation, the Company sets differentiated risk identification and management requirements based on the business scale and category characteristics of individual suppliers, with a focus on environmental protection, labor rights protection, and quality compliance as core priority areas. Meanwhile, the Company establishes clear requirements for suppliers in environmental governance, occupational health and safety, compliance management, anti-corruption, and other related fields.

Supplier ESG Management Requirements

5.2.3 Supplier Communication

Jihong Group has established a regular communication mechanism with suppliers, committed to maintaining long-term and stable cooperative relations. The Company maintains continuous communication with suppliers on product quality management, safety management, environmental management, compliance and integrity requirements, helping them fully understand and implement the Group’s relevant management requirements and sustainability philosophy.

Meanwhile, the Company regularly provides targeted communication and guidance to suppliers. Through ongoing communication and interaction, the Group deepens mutua and collaboration with suppliers, improves business synergy efficiency, and promotes the sustainable development of the entire value chain.

Case: Conducting Technical Exchanges on New Environmentally

Friendly Materials with Bohui Paper

In 2025, the Company participated in a new technology exchange meeting organized by Bohui Paper, with a focus on its newly launched EPP zero-plastic paper cup. This product can replace traditional coating materials, which enhance environmental performance and reduce carbon emissions. Through communication, the Company gained a deeper understanding of the performance and application scenarios of such eco-friendly materials. On this basis, the Company promoted sampling testing and explored practical applications and customer-side promotion, providing support for green material application and business expansion.

5.2.4 Equal treatment of SMEs

Jihong Group upholds the principles of fairness, impartiality and transparency in procurement activities throughout supply chain cooperation, and places strong emphasis on building stable and sustainable partnerships with SME suppliers. In respect of performance and payment management, the Company strictly abides by agreements, timely fulfills payment obligations under agreed payment terms and arrangements, and effectively safeguards the legitimate rights and interests of suppliers.

uring the reporting period, the Company had no overdue or outstanding payments to SME suppliers, and all procurement payments were settled in full compliance with act terms.

Jihong Group attaches great importance to the occupational health and safety of employees. The Company integrates the management philosophy of “people-oriented, safety-first, prevention-focused, and comprehensive management” into the entire production and operation process, and continuously implements an occupational health and safety management system. The Company focuses on key areas including workplace safety management, occupational health risk control, employee safety training, and emergency response management. The Company systematically advances regulatory compliance and on-site implementation, strengthens health and safety management for employees, contractors, and other relevant parties, and is committed to providing a safe, healthy and stable working environment for all staff.

5.3.1 Work Safety

Jihong Group strictly abides by applicable laws and regulations, including the Work Safety Law of the People’s Republic of China. The Company maintains and enforces a series of internal safety management systems, such as the Work Safety Management System, Comprehensive Emergency Response Plan for Workplace Safety Accidents, Safetyse responsibilities at all levels and promote full implementation of safety obligations through responsibility breakdown and process-based supervision.

Jihong Group Work Safety Performance in 2025：

Number of work-related fatalities: 0 people; Work-related fatality rate: 0% ; Lost workdays due to work-related injuries: 1,567 days; Investment in work safety measures: RMB 1.26 million.

2025 Work Safety Daily Management Measures at Jihong Group

Case Study: Ningxia Factory Identifies Safety Risk Points and Compiles the Hazard Identification and Risk Assessment List 2025

In 2025, in conjunction with process adjustments involving new tape applicators and paper straighteners, the Ningxia Factory carried out a reassessment of safety risks across the entire production facility. Through this work, the factory formulated the Hazard Identification and Risk Assessment List 2025. A total of 674 risk points were identified and subjected to four-level risk management: red, orange, yellow, and blue. No major risks were identified in this round.

Case Study: Jinan Factory Launches Fire Safety Training and Emergency Evacuation Drill

Case Study: Month of Workplace Safety Campaign at Shaanxi Factory

In June 2025, Shaanxi Factory launched a series of Month of Workplace Safety activities under the theme “Everyone Knows Safety Emergency Response—Identifying Hidden Hazards Around Us.” Focused on production, warehousing, logistics and other key sectors, the campaign included safety awareness training, hazard identification and rectification, emergency evacuation and fire drills, with 126 employees participating.

The factory clarified safety responsibilities via a kick-off meeting, delivered training on safety awareness and proper use of personal protective equipment, systematically reviewed and updated hazard and risk registers, and carried out full inspections of water, electricity, gas and fire protection facilities across the site. All identified hazards were rectified timely. Emergency evacuation, firefighting and environmental incident response drills were also conducted to further strengthen employees’ emergency response capacity and drive the effective implementation of on-site safety management.

On November 24, 2025, Jinan Factory organized fire safety training and a full-site emergency evacuation drill for all departments and employees, aiming to strengthen fire prevention awareness and on-site emergency response capabilities. The training adopted a format of theoretical instruction, case study and interactive Q&A, covering core content such as identification of fire causes and common hazards (such as electrical faults, illegal hot work, improper management of flammable materials), fire safety laws and regulations, fire prevention responsibilities, the proper use of fire extinguishers, fire hydrants and automatic alarm systems, key points for initial fire suppression, and practical escape skills (including covering the mouth and nose with wet towel, low-posture movement, and emergency exit identification). Targeted layered questioning was implemented to identify knowledge gaps in real time, reinforcing the corporate safety philosophy of “Everyone Knows Safety Emergency Response”.

On the same morning, the factory conducted an emergency evacuation drill simulating a production workshop fire. The on-site emergency plan was activated promptly, with each emergency response team fulfilling its assigned duties to guide employees in orderly evacuation and complete centralized headcounts. During the drill, emergency broadcasting, evacuation routes, and firefighting facilities operated normally, and overall evacuation efficiency improved year-on-year. Post-drill, the factory conducted a thorough review of identified issues and formulated targeted improvement measures, focusing on standardizing evacuation procedures and optimizing safety signage to further enhance emergency management capabilities.

5.3.2 Occupational Health and Safety

Jihong Group strictly complies with relevant laws and regulations, including the Law of the People’s Republic of China on Prevention and Control of Occupational Diseasetetla Occupational Hygiene Management System. As of the end of the reporting period, all 10 of the Group’s production bases have obtained ISO 45001 Occupational Health and et systematically evaluated, driving continuous improvement.

Centered on safeguarding employee health, the Company conducts statutory occupational health examinations, including targeted physical checks for employees exposed to occupational hazards. The Company also fully covers employees with work-related injury insurance and work safety liability insurance to protect their legitimate rights and interests. During the reporting period in 2025, the Company recorded no occupational disease incidents, and employee safety training achieved 100% coverage.

Jihong Group has established a comprehensive talent management framework encompassing talent acquisition, rights protection, and capability development. By upholding compliance and fairness in employment and recruitment, optimizing salary and benefits, communication mechanisms, and employee care, and implementing institutionalized talent training systems, the Company delivers sustained human capital support for stable operations and business growth.

5.4.1 Diversity, Equality, and Inclusion

The Company adheres to legal employment practices, safeguarding employees’ legitimate rights and interests. Fairness is enforced across recruitment, hiring, remuneration, performance appraisal, promotion, and career development—with strict prohibition of discrimination based on gender, age, ethnicity, origin, marital and family status, religious beliefs, or disability (factors unrelated to job requirements). This ensures equal development opportunities and equal pay for equal work, fostering an open and inclusive workplace culture.

To mitigate child labour and forced labour risks, the Company integrates compliance reviews into recruitment and onboarding, with rigorous identity and qualification verification. Aligned with the Law of the People’s Republic of China on the Protection of Minors and the Provisions on the Prohibition of Using Child Labor, the Company’s Corporate Social Responsibility (CSR) Management Manual stipulates that the Company and all subsidiaries shall strictly verify employee identity information during the recruitment process and explicitly prohibits hiring minors and all forms of forced labour. Suspected violations trigger immediate investigations and disciplinary actions against accountable directors and personnel. No child labour or forced labour incidents were recorded in 2025.

To meet business development and talent pool development needs, the Company adopts multi-channel recruitment with publicly disclosed vacancies, ensuring transparent and equitable application opportunities. In 2025, recruitment channels included online platforms, headhunting, and campus recruitment (via campus talks and internship-topermanent), resulting in 654 new hires: 77% social recruits, 12% internal referrals, and 8% campus graduates.

Complementing recruitment, the Company advances industry-university cooperation and targeted training. Initiatives such as the “Hongling Project” and “Hongyu Plan” cultivate grassroots skilled talents and reserve management and professional personnel. At select bases, partnerships with vocational colleges include lectures, site visits, and tailored on-the-job training to align talent development with business needs.

Recruitment Channels at Jihong Group

The Company has long regarded employee diversity as a key strategy for sustainability. Through a systematic talent management mechanism, the Company prioritizes employment opportunities for diverse groups, continuously advances inclusive employment practices, and fosters an inclusive, open and diverse talent ecosystem.

Highlight to Enhance Employee Diversity

Case: Overseas Business Talent Recruitment Program 2025

To support the overseas business expansion strategy, the Company launched an overseas business talent recruitment program targeting overseas production bases in the United Arab Emirates, Oman and other locations. The program focuses on introducing midtosenior professionals and technical specialists for key positions, including production management, quality management and functional support. Selected candidates have completed systematic training at domestic factories. The first batch of personnel will be deployed overseas in phases starting from 2026 to support the stable production and operation of overseas bases.

ase: Cooperation Between Xiaogan Jihong and Wuhan Vocational College of Information and Communication

Xiaogan Jihong has established an industry-university partnership with Wuhan Vocational College of Information and Communication. Through campus talks, company visits and customized training programs, the Company has guided students majoring in intelligent manufacturing to participate in the Hongling Engineering Training Program. In 2025, a total of 21 students had officially joined the Company, providing a stable talent pipeline of skilled professionals for intelligent manufacturing operations.

Employment in 2025 at Jihong Group

5.4.2 Employee Rights Protection

The Company adheres to the principles of lawful and compliant employment, and upholds the core guidelines of “compliance, fairness, motivation, competitiveness, and resilience”. The Company continuously optimizes its salary and benefits system and strengthens the protection of employees’ legitimate rights and interests. Meanwhile, the Company actively promotes fairness and a strong sense of belonging among employees through effective communication and care, fostering a stable, harmonious and positive working environment.

The Company attaches great importance to employees’ needs and establishes a stable and harmonious workplace through institutionalized communication and feedback mechanisms. In 2025, the Company formulated the Employee Management Measures, which stipulate that employees who object to position adjustments may submit a written appeal to their department supervisor. The department management team shall review the validity of the objection and issue a final decision accordingly. In addition, the Company published an announcement on its office platform to solicit opinions on the transparency of human resources policies, clarifying official feedback channels to widely collect employees’ views and suggestions.

In terms of compensation and benefits, the Company has established a comprehensive salary and incentive framework. In 2025, the Company maintained its structured salary system comprising basic salary, position-based salary, performance salary, commission, overtime pay and various bonuses and allowances. The Company also integrated long-term incentives such as annual dividends and equity incentives, forming a complete short-, medium‑ and long‑term incentive mechanism. The Company has implemented a standardized salary calculation and payment process to ensure that employees receive their remuneration on time and in full. The Company also makes statutory contributions to social insurance and the housing provident fund for all employees, fully safeguarding their statutory rights and benefits.

To enhance employees’ sense of gain and belonging, the Company continues to provide diversified welfare programs and care initiatives. In 2025, the Company carefully organized a series of employee activities centered on the theme of “empowering growth, enhancing solidarity and building warmth together”, covering public welfare practices, team building, ideological guidance and other dimensions. Through participation in these activities, employees can deeply experience the care and further strengthen their sense of belonging and happiness.

Case Study: Holiday Benefits

The Company prepares holiday benefits and gifts for each employee during major festivals such as the Spring Festival and Mid-Autumn Festival.

5.4.3 Employee Training and Development

Jihong Group attaches great importance to the long-term development and upskilling of employees, and regards employee growth as a fundamental pillar of sustainability. The Company has established a systematic talent development framework centered on job competency and organizational development needs, covering talent cultivation, career progression, and employee training. Through clear career development paths and tiered training arrangements, the Company supports employees in enhancing their professional capabilities and achieving career growth, and promotes the alignment of individual development with corporate strategic objectives.

Talent Development and Promotion

The Company has put in place internal management systems, including the Employee Career Development Management System and the Talent Development Management System, and conducts regular talent assessments to build a personnel mechanism where “the capable rise, the mediocre step aside, and the incomplete leave.” The Company has also systematically optimized the full-cycle management of training, development and promotion. On this basis, the Company has built a talent development pathway underpinned by a dual-track rank system, establishing parallel promotion channels for management roles and professional specialists. The Company has standardized the rank adjustment procedure, strengthened the application of performance appraisal and talent assessment results in promotion decisions, and formed a comprehensive evaluation system with performance, capability and values at its core.

Talent Development Plans 2025 at Jihong Group

Giikin Management Trainee Program

Jihong Group Management Talent Development Plan

Jihong Group Strategic Talent Cultivation Project “Hongyu Program”

The Giikin Management Trainee Program is designed to cultivate versatile talents with expertise in both business and management. Over 12 months, trainees go through rotational assignments, structured training, and performance evaluations to build their skills and adaptability. Trainees rotate through roles such as Business Assistant, Optimization Specialist, and Product Selection Specialist, gaining hands-on experience through company on-boarding, business rotations, and competitive placement exercises. The program is supported by mentors-hip, regular evaluations, and quarterly reviews, ensuring continuous development. At the end of the program, trainees are placed in roles that match their skills and interests, helping them grow while contributing to the Company’s success.

The Company identifies high-potential employees through talent assessments and evaluations, preparing them for key leadership roles. Development efforts include hands-on project assignments, mentorship programs, and leadership courses, equipping employees with the skills needed for management positions. Qualified individuals are promoted through direct appointments or internal selection processes, ensuring a strong pipeline of capable leaders. This program helps build a talent pool for roles such as Vice Presidents, department heads in production, PMC, quality, and equipment management, as well as frontline team leaders, supporting both employee career growth.

The program covers four stages: selection, development, appointment, and retention. In the selection stage, the focus is on identifying highpotential, highly committed, and highly qualified talents. The development stage is based on a workstudy approach, combining on-the-job training, classroom learning, and mentorship to set clear growth objectives, and provides dual career paths in both technical and managerial roles. The retention stage offers performance bonuses, salary adjustments, and promotion incentives to support the long-term development and stability of core talent.

Employee Training

In terms of employee training, the Company has established internal systems, including the Training Management System, to standardize training procedures and requirements, and has built a hierarchical and categorized training system covering new employees, incumbent employees, and management personnel.

The Company systematically carries out various training activities in accordance with the annual training plan, including job skill enhancement, management capability development, and specialized thematic training, to continuously meet the development needs of different employee groups. In 2025, the total annual training expenditure of Jihong Group was RMB 100,000.

Academic Qualification Training

Vocational Qualification Training

Skilled Worker Apprentice Training

Training Programs at Jihong Group

Employee Training Status in 2025 at Jihong Group

Job Training

The Company conducts job training (including preemployment safety operation training, and quality management training, and skilled workers apprentice training.

In 2025, the Company launched short-term talent training programs, with monthly assessments of participants conducted from March to December. A total of 7 multi‑skilled workers and 2 skilled workers were trained.

In February 2025, three employees participated in the intermediate vocational qualification training and examination for Fire Protection Facility Operators and successfully obtained the corresponding qualification certificates.

To support employees’ long-term career development and enhance the overall talent quality, Jihong Group has established an Academic Qualification Improvement Program for key positions across subsidiaries. Fully funded by the Company, the program provides systematic support for employees to pursue higher academic degrees.

Job Training at Jihong Group

Skilled Worker Apprentice Training at Jihong Group

Academic Qualification Training at Jihong Group

Case: Employee Skills Competition

In October 2025, the Company organized an employee skills competition with multiple events designed based on the practical needs of frontline positions. The competition covered color matching skills for the Offset Printing Department, forklift operation for the Storage and Transportation Department, fire safety drills for the Production Department, quality skills contests, knowledge quizzes, and PS publishing skills contests for the Technical Quality Department. The event helped employees enhance their professional capabilities and safe operation standards. The Company prepared prizes for participants and on-site observers, which effectively boosted employee engagement and teamwork atmosphere.

Jihong Group actively fulfills corporate social responsibility by integrating philanthropy into business development, employee engagement and community development. The Company has maintained consistent participation in social welfare and rural revitalization initiatives through diversified channels. By leveraging resource advantages and operational capabilities, the Company encourages employees to engage in public welfare through volunteer services and charitable activities, with a focus on supporting vulnerable groups and the needs of communities. This enables the Company’s development to better benefit society at large.

In 2025, employees participated in volunteer activities for a total of 180 person-times, contributing 33 hours of service, with public welfare projects receiving an investment of RMB 2,819,100. Meanwhile, the Company invested RMB 70,000 in rural revitalization projects, benefiting 11,000 people.

Case: Public Welfare Activity on Arbor Day– "Planting Trees to Protect Forest Together"

On March 12, 2025, the Company celebrated the 47th National Arbor Day by organizing a public welfare tree planting activity themed public welfare practice and team collaboration in partnership with the authorities of Shifo Town. Employees traveled to a suburban public welfare tree planting base to participate in the event.

At the site, employees worked together in teams to complete the whole planting process orderly, including shoveling soil, fixing saplings, watering and maintenance. In total, more than 200saplings were planted. The activity also included a special session of the Exclusive Sapling Sponsor. Employees were able to hang customized nameplates on the sponsored saplings and commit to regular maintenance and care in the future.

6 Governance: Stable Operation

Jihong Group firmly adheres to the principles of compliant operation and transparent information disclosure, and deeply implements a sustainability-focused development philosophy. The Company optimizes corporate governance structure, strengthens risk management system, upholds ethical and compliant business conduct, and steadily improves the systematization, robustness and effectiveness of governance practices, laying a solid foundation for the longterm and healthy development of the enterprise.

Jihong Group views sound corporate governance as a core engine for steady growth. Guided by the philosophy of lean governance, the Company further refines governance mechanisms, enhances the board professionalism and diversity, improves the scientificity and foresight of strategic decision-making, effectively protects the rights and interests of shareholders, and promotes sustainable, high-quality and sound development.

6.1.1 Board of Directors Structure

Jihong Group fully complies with applicable laws and regulations, including the Company Law of the People’s Republic of China, the Securities Law ofthe People’s Republ tistin accordance with internal governance instruments such as the Articles of Association, the Rules of Procedure for Shareholders’ Meetings, and the Rules of Procedure for the oardesa Board of Directors and the senior management. Director elections and appointments follow a fair and transparent process, ensuring a governance system that is efficient, compliant, and stable while safeguarding the interests of both the Company and its shareholders. The Board of Directors has established four special committees: the Strategy Committee, the Audit Committee, the Nomination Committee, and the Remuneration and Assessment Committee. Each special committee reports to the Board of Directors, conducts research and reviews on major governance matters, puts forward professional opinions and recommendations, and supervises the implementation of relevant resolutions, thereby improving the efficiency and quality of the Board’s decision-making. As of the reporting period, the Company’s Board of Directors consisted of 9 members, including 4 independent directors and 5 non-independent directors (including 1 employee representative director), with independent directors accounting for 44% of the Board.

Governance Structure

6.1.2 Diversity of the Board of Directors

Jihong Group emphasizes the diversity and professionalism of the Board of Directors. In the selection of directors, the Company comprehensively considers multiple factors, including gender, age, professional competence, industry experience and educational background. This ensures that Board members possess solid professional qualifications, extensive industry experience and complementary knowledge structures covering key fields such as finance, law and corporate management, thereby ensuring informed and effective decision-making. Meanwhile, to maintain the stability and initiative of the Board, the Company has established a performance-based remuneration and incentive system, which effectively motivates directors and senior management to perform their duties diligently. As of the end of the reporting period, Jihong Group’s Board includes 2 female directors.

6.1.3 Investors Communication Mechanism

Jihong Group is guided by investor needs and adheres to the principles of openness and transparency in information disclosure, maintaining a clear and efficient communication mechanism with investors. The Company introduces management philosophy, corporate culture, and business performance through shareholders’ meetings, earnings briefings, and other channels. To effectively protect investor and shareholder legitimate interests, the Company continuously improves shareholder return mechanisms, fostering a balanced relationship between the Company and its shareholders while strongly supporting sustainable development.

Composition of the 6th Board of Directors7

7.C: Chairman of board committees, M: Members of board committees

Investor Communication

The Company maintains close communication with investors through diversified channels, including information announcements, the investor relations interactive platform, performance briefings, investor hotline calls, designated email, the official website and WeChat official account, committed to establishing and sustaining long-term, stable and trust-based investor relations. During the reporting period, the Company held two earnings briefings, responded to 80 interactive Easy posts, and issued 138 announcements.

Shareholder Returns

The Company continuously improves the shareholder return mechanism. When formulating policies, the Company fully solicits opinions from shareholders and independent directors, with particular attention to the reasonable demands of minority shareholders. In respect of profit distribution, the Company prioritizes cash dividends and maintains the continuity and stability of its dividend policy, striving to achieve an effective balance between protecting the equity interests of all shareholders and promoting the longterm development of the Company.

Jihong Group continuously optimizes risk management mechanisms and clarifies risk management responsibilities at all levels. The Company proactively promotes risk identification, assessment and mitigation, and steadily improves the effectiveness of risk management. Meanwhile, the Company strengthens risk awareness training across all employees, providing solid support for the stable and sustainable development of various business operations.

6.2.1 Risk Governance

Adhering to the risk management principles of “knowable, controllable, and bearable”, Jihong Group has formulated and implemented a Comprehensive Risk Management Systes Company has established a risk management organizational structure consisting of the Board of Directors, the Audit Committee, and the Audit and Financial Management tei of comprehensive risk management activities.

Risk Management Framework and Responsibilities at Jihong Group

Board of Directors

Audit Committee

Audit Department

Oversees overall risk management and business operations.

Audit Committee as a specialized committee under the Board, providing guidance and supervision for risk management activities.

Reports regularly to the Audit Committee, monitoring internal control systems to ensure that they are properly established and effectively implemented.

To further strengthen internal management and risk prevention, the Company has carried out special audits of subsidiary factories in accordance with the internal audit system, and will strictly implement corresponding incentives and accountability mechanisms based on audit results. In September 2025, the Company conducted an operations management audit of Ningxia Factory. The audit results showed that the factory achieved excellent operational performance, and the Company granted performance bonus points as an incentive.

6.2.2 Risk Identification and Response

The Company continuously optimizes risk management processes, and regularly conducts risk identification, assessment and response activities to establish a dynamically updated risk database. In 2025, the Company identified key risk points embedded in production and operational activities, covering major business processes including procurement management, production management and sales management, as well as core areas such as logistics and asset management. Tiered and classified control measures have been implemented to effectively enhance risk control capabilities. Meanwhile, risk management has been integrated into the internal control audit system. The Company performs regular internal control selfassessments and engages third-party institutions to conduct internal control audits. During the reporting period, no significant or material risk events were identified in risk management and internal control activities.

Risk Management Process and Measures

6.2.3 Risk Awareness and Culture

The Company places emphasis on enhancing the risk awareness and control capabilities of all personnel. To address practical management requirements, the Company regularly organizes training sessions and awareness programs on contract approval, seal usage, and information system operations, ensuring employees fully comprehend and adhere to internal risk management policies, minimizing the likelihood of risk violations in daily operations.

Case: Comics on "Risk Control Talks"

In 2025, the Company launched a series of comic promotions on a regular basis, including Risk Control Talks and Tips on Avoiding Pitfalls. The series covers key risk management scenarios, including contract management, customer complaints, and procurement practices. Through such engaging formats, the Company effectively strengthens employees’ risk control awareness and enhances their capacity to respond to risks.

Jihong Group steadfastly adheres to core corporate values of “responsibility, innovation, and achievement,” and upholds the fundamental principle that “credibility and integrity lay the foundation for growth.” The Company continuously improves its business ethics and compliance management system, vigorously promotes an integrity-driven corporate culture, establishes and improves complaint channels, and maintains a zero-tolerance attitude toward corruption and unfair competition. The Company is committed to fostering a clean and upright business environment, providing a solid guarantee for high-quality development.

6.3.1 Business Ethics Governance

Jihong Group consistently prioritizes integrity and compliance within the corporate governance framework. The Company strictly abides by applicable laws and regulations, including the Company Law of the People’s Republic of China, the Anti-Monopoly Law of the People’s Republic of China, the Criminal Law of the People’s Republic ofChina, the Anti-Unfair Competition Law of the People’s Republic of China, and the Anti-Money Laundering Law of the People’s Republic of China. The Company has formulated internal management systems such as the Conflict of Interest Management System, the Anti-Business Bribery, Anti-Fraud, and Reporting Management System, and the Gift adhere to lawful and compliant operation.

In 2025, the Company officially issued the Anti-Unfair Competition Management System. The Company consistently applies anti-unfair competition principles throughout operations, as reflected in various agreements signed with external parties, including a Confidentiality Agreement in cooperation, Non-infringement Commitment with customers, and Transparent Agreement with suppliers. These measures promote fair competition, oppose and prevent unfair competition practices, and respect the legitimate rights and interests of all parties.

Business Ethics Management System at Jihong Group

Board of Directors

Audit Committee

Management Team

Audit Department

Company and Subsidiaries

Responsible for overseeing management in establishing a company-wide culture of integrity and developing robust internal control systems to combat commercial bribery and fraud.

As the leading body for the Company’s integrity initiatives, it guides and supervises the Company’s anti-bribery and antifraud efforts.

Responsible for establishing, improving, and effectively implementing internal controls related to anti-bribery and antifraud to mitigate the risk of bribery and fraudulent activities. In the event of a bribery incident, it formulates and implements appropriate and effective remedial measures, subject to oversight by the Board of Directors and its Audit Committee.

The Audit Department serves as the permanent body for antibribery and anti-fraud efforts, responsible for conducting supervision and investigations related to these matters.

Responsible for the implementation of internal controls related to anti-bribery and antifraud and for cooperating in the investigation and evidence collection of bribery and fraud incidents.

To enhance the risk controls against corruption, unfair competition, and other violations, Jihong Group has reinforced its integrity management measures. When appointing or promoting candidates for key positions, the Company conducts thorough integrity evaluations and enforces a strict anti-bribery commitment system. Candidates are required to sign the Honest Operation and Compliance Management Commitment Letter, with compliance performance integrated into their evaluations. Based on business ethics risk assessments, the Company also conducts regular audits, combining daily monitoring with targeted reviews. During the reporting period, the Company identified no business ethics-related risk factors such as bribery, extortion, fraud, or money laundering that materially impacted compliance.

Business Ethics Audit Measures at Jihong Group

Suppliers

Internal Employee Management

When establishing cooperative relationships with suppliers and customers, the Company typically formalizes a shared commitment to upholding business ethics through written agreements, while informing them of specific complaint channels.

During routine audits, supplier management is incorporated into the audit scope. Key points include, but are not limited to, whether both parties have reached a consensus on jointly maintaining business ethics and whether any breaches of business ethics have occurred during the cooperation period.

During onboarding procedures, the Human Resources Department briefs new hires on integrity and compliance requirements. Upon full understanding and agreement to comply, new employees sign the Honest Operation and Compliance Management Commitment Letter.

The Company stresses the Code of Conduct for Management Personnel at regular meetings, requiring managers to strictly adhere to relevant business ethics regulations.

In day-to-day operations, the Audit Department disseminates business ethics awareness materials, emphasising an integrity culture and institutional policies to all employees.

6.3.2 Business Ethics Training

Jihong Group continues to promote anti-corruption education and training and strengthens the development and implementation of a corporate culture of integrity, with a focus on improving the business ethics and anti-corruption awareness of all employees. The Company regularly organizes specialized training for senior management and directors on topics including the Code of Conduct for Management Personnel and the Gift Management Measures, so as to guard against potential misconduct and ensure integrity and compliance in corporate governance. For all employees, the Company expands the coverage of integrity promotion through posters, continuously conveying the importance of an integrity culture.

Case Study: Awareness Training on Open Procurement with Integrity

In 2025, the Company held the integrity awareness training on Open Procurement with Integrity. The program covered regulatory requirements, whistle-blowing mechanisms, integrity initiatives and procurement-related risks. This training further strengthened the procurement compliance and risk management system, improved supervision and reporting mechanisms, promoted the integration of an integrity culture into operations, and supported sustainable and high-quality development. The training was delivered to all members of the Procurement Centre and newly recruited procurement staff at the Suzhou factory, with a total of 8 participants. After the training, the Procurement Centre carried out cascaded secondary training for procurement personnel across subsidiaries, which effectively improved employees’ risk management capabilities.

Case Study: Integrity Campaign for Mid-Autumn Festival and National Day

Ahead of the Mid-Autumn Festival and National Day holiday in 2025, the Company launched a special compliance and integrity campaign focused on regulated festival gift-giving and accepting practices. Training materials on gift-giving and accepting policies and compliance requirements were uniformly issued to department heads and managers of all subsidiaries. All responsible persons were required to complete self-study within the specified period and conduct internal training sessions for their respective teams. The Company also distributed compliance publicity posters to further strengthen integrity reminders.

As of the end of the reporting period, Jihong Group held six anti-corruption training sessions for employees and senior management, covering business ethics standards, reporting mechanisms, and reward and punishment regulations. A total of 394 participants attended, with cumulative training hours reaching 23 hours. For members of the Board of Directors, the Company provided five hours of anticorruption training, achieving 100% coverage of all directors.

6.3.3 Reporting Management

Jihong Group strictly abides by the regulations of national disciplinary inspection and supervision authorities, and improves the Anti-Business Bribery, Anti-Fraud, and Reptinte effective manner. The Company has established diversified and easily accessible reporting channels, encouraging internal employees and external stakeholders such as business partners to report fraud or suspected violations via telephone, email, written correspondence or face-to-face meetings. Upon receipt of a report, the Audit Department launches an investigation in strict accordance with prescribed procedures, ensuring objectivity and impartiality throughout the process.

To protect the legitimate rights and interests of whistleblowers, the Company’s internal management systems explicitly include protection provisions that prohibit any form of discrimination or retaliation, including unfair dismissal, harassment, or unreasonable disciplinary action. Without the consent of the whistleblower, the Company will not disclose their identity or the content of the report, ensuring effective protection during the investigation. Meanwhile, the Company resolutely prohibits false or malicious reporting. If such conduct is verified, corresponding measures will be taken against the whistleblower in accordance with regulations, so as to fully safeguard the integrity of the reporting system and maintain the effectiveness of reporting channels. In 2025, the Company had no litigation or administrative penalty cases involving unfair competition, embezzlement, bribery or money laundering.

Reporting Channels at Jihong Group

Reporting Hotline: 18150353249 Reporting Email: shenji@jihong.cn Reporting Address：Audit Department, Jihong Group, No.9 Putou Rd., Dongfu Industry Park Ⅱ, Haicang District, Xiamen City, Fujian Province

7 Appendices

Environmental

Climate-related Disclosures

Social

Social

A s p e c t B 4 : L a b o u r S t a n d a r d s

A s p e c t B 5 : S u p p l y C h a i n M a n a g e me n t

A s p e c t B 6 : P r o d u c t R e s p o n s i b i l i t y

Aspect B7: Anti-corruption

Aspect B8: Community Investment

Dear Readers,

Greetings! Thank you for taking the time to read the 2025 Xiamen Jihong Technology Co., Ltd. Environmental, Social and Governance (ESG) Report. We highly value your feedback and look forward to hearing your thoughts on our ESG management, practices, and reporting. Your opinions and suggestions serve as a crucial foundation for us to continuously improve our ESG management and implementation. We look forward to your response!

1.Which stakeholder category does your organization belong to within Jihong Group? □ Shareholders and Investors □ Employees □ Suppliers □ Customers □ Government and Regulators □ Community □Partners □ Industry Associations/NGOs □ Other (Please specify):

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

4. How well do you think this report reflects the Company’s fulfillment of its economic responsibilities? □ Good □ Fairly Good □ Average □ Poor

5. How well do you think this report reflects the Company’s fulfillment of its environmental responsibilities? □ Good □ Fairly Good □ Average □ Poor

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

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

. Do you have any opinions or suggestions regarding the Company’s environmental, social, and governance efforts or the preparation of this report?

Xiamen Jihong Technology Co., Ltd. Environmental, Social and Governance Report 2025

March 2026