豪鹏科技：2025年度环境、社会及公司治理（ESG）报告（英文版）

2025 Environmental, Social and Governance Report

Chairman's Statement 03

CONTENTS

About the Report 01 Overview 01 Reporting Time Range 01 Basis of Compilation 01 Scope and Boundary of the Report 01 Source and Reliability Assurance 01 Confirmation and Approval 02 Reporting Language 02 Publication Form 02

Company Profile 05 Corporate Culture 05 Global Network 05 Product Sector 06 External Recognition 06

Sustainable Development Strategy 11 Sustainable Development Management Framework 12 Assessment of Material Issues 14 Due Diligence, Stakeholder Engagement 15

Appendix 103 Appendix I Key Performance Indicators 103 Appendix II Benchmarking Index 110 Appendix III Glossary 117 Appendix IV Correspondence of Company Names and Abbreviations 119 Appendix V Independent Assurance Statement 120 Reader Feedback Form 123

Honest Governance

19 Corporate Governance 21 Compliance Operations and Risk Management 23 Business Ethics Management 26 Information Security and Privacy Protection 29 Community Investment Participation

Immaculate Quality

33 ◦ Innovation-Driven Development 41 ◦ Opportunities in Clean Tech and Circular Economy 45 ◦ Product Quality and Safety 55 ◦ Customer Relationship Management 58 ◦ Sustainable Supply Chain

Green Planet

65 Environmental Management and Ecological Conservation 69 Emissions and Waste Management 72 Energy and Resource Management 76 Addressing Climate Change

Harmonious Life

83 Employee Rights and Benefits 89 Employee Training and Development 95 Occupational Health and Safety

About the Report

Overview

This report is the third environmental, social and governance report issued by Shenzhen Highpower Technology Co., Ltd. (Hereinafter referred to as “Highpower Technology”, the “Company”), reflecting the Company’s thinking, practice, results and prospects in carrying out compliance and ethical corporate governance, improving environmental benefits and promoting harmonious social development.

Reporting Time Range

This report is an annual report covering the work from 1 January, 2025 to 31 December, 2025 (the “reporting period”). To enhance the completeness of the report content, certain related information may extend beyond the reporting period and will be accompanied by a time reference where relevant.

Basis of Compilation

This report is mainly prepared in accordance with Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial Implementation), and with reference to the Sustainability Reporting Guidelines (2021 edition) of Global Reporting Initiative (GRI), the issues concerned by Sustainable Development Goals (SDGs) and mainstream ESG ratings at home and abroad.

Scope and Boundary of the Report

The scope of information disclosed in this report covers Highpower Technology and its subsidiaries. Unless otherwise specified, it aligns with the scope of the consolidated financial statements of Highpower Technology (Stock Code: 001283). Should any discrepancy arise between the scope of sustainable performance data and the reporting scope within this document, the notes in the main body of the report shall prevail.

Source and Reliability Assurance

The information and data disclosed in this report are derived from the Company’s statistical reports and official documents, and have been reviewed by relevant departments. The Company promises that there is no false record or misleading statement in this report, and is responsible for the authenticity, accuracy and completeness of the content, All currencies in the report are RMB, If the financial data in this report is inconsistent with the financial report disclosed by the Company, the financial report shall prevail.

Confirmation and Approval

This report was approved by the Board of Directors on 1 April, 2026 after being confirmed by the management

Reporting Language

The report is published in both Chinese and English. In case of any discrepancy between the two versions, the Chinese version shall prevai

Publication Form

View or download the electronic version of this report on the official website of Highpower Technology: https://www.highpowertech.com

If you have any questions or suggestions regarding this report, please feel free to contact Highpowe Technology at:

• Board Office of Shenzhen Highpower Technology Co., Ltd.

• Contact Address: Building 1, No. 68, Xinxia Avenue, Pinghu Street, Longgang District, Shenzhen, Guangdong, China

• Email: hpcapital@highpowertech.com

• Contact Tel: +86-0755-8968-6543

Chairman’s Statement

Currently, global energy technology and artificial intelligence are undergoing profound integration, with AI applications represented by edge-side intelligent devices accelerating their deployment. This convergence is generating unprecedented new demands, standards and possibilities for the renewable energy sector. Highpower Technology actively embraces this trend, having defined its development objective as the “Pioneer in Edge AI Energy”. Through continuous scenario insights and technological innovation, the Company is committed to delivering safer, more efficient and cleaner system-level energy solutions for global clients, empowering intelligent devices and a sustainable future.

Honest Governance: Advancing ESG-Integrated Governance to Forge a New Paradigm of Steady Progress. Highpower Technology embeds sustainability within its corporate DNA, incorporating ESG risks into its enterprise risk management framework. The Company drives deep integration of ESG principles with its business operations, proactively transforming ESG challenges into new opportunities to propel technological innovation and shape competitive advantages. The Company continuously refines its governance mechanisms and internal control systems, upholds business ethics, maintains stringent information security controls, and fortifies the foundations of compliant operations. Concurrently, The Company actively engages in philanthropic endeavours such as educationgl support and community welfare initigtives. practising business for good and striving to achieve a harmonious unity of economic benefits, environmental benefits, and social value.

Immaculate Quality: Forging a Sustainable Innovation Moat, Building a New Ecosystem of Shared Value. Research and development remains the core engine driving the Company’s innovative breakthroughs and constructing competitive barriers. Highpower Technology deeply integrates AI technology into R&D process, not only manufacturing batteries for AI devices but also leveraging AI to optimize R&D processes such as materials, design, and manufacturing techniques. Addressing core pain points in edge AI devices— including energy consumption, size, and security—the

Company has established a systematic technological leadership framework, forming a technology matrix that covers “AI-driven energy demands across all scenarios”. Through exceptional product and service capabilities, Highpower Technology fosters deep symbiosis with global clients. It is committed to evolving from a “product demand responder” into a “joint planner of future scenarios”, while continuously advancing sustainable supply chain development. Together with clients and suppliers, the Company builds a sustainable business ecosystem characterized by “technology sharing and value co-creation”.

Green Planet: Implementing Clean Technologies and Circular Economy Principles to Explore New Paradigms for Low-Carbon Development. Highpower Technology adheres to a green design philosophy centered on low-carbon footprints throughout the entire product lifecycle. By deeply integrating circular economy principles into product development, the Company actively increases the proportion of recycled materials used. This includes exploring sustainable product solutions such as removable batteries, thereby driving low-carbon transformation within the industry. At the operational level, the Company systematically advances the establishment of energy and greenhouse gas management systems. As of the report’s publication, Guangdong Highpower and Huizhou Highpower have obtained ISO 50001 Energy Management System Certification, conducting regular greenhouse gas inventories and verifications. Through key technical upgrades—including optimizing water intelligent control systems and implementing energysaving modifications to air compressors—the Company continuously enhances energy efficiency. Concurrently, it vigorously deploys distributed photovoltaic systems and procures green electricity at scale, supporting the clean transition of the energy structure. In 2025, the proportion of renewable energy used reached 25.34%. The Company is striving to achieve carbon neutrality across its global operations by 2040 and carbon neutrality across its value chain by 2050, demonstrating concrete action in response to the national “Dual Carbon” strategy.

Harmonious Life: Forging agile, self-driven teams to ignite fresh vitality in organizational growth. Highpower Technology firmly believes that talent constitutes the Company’s most valuable asset, prioritizing occupational wellbeing alongside employees’ lawful rights and workplace democracy to cultivate a secure, equitable and respectful working environment. Through five strategic pillars – organizational development, employee motivation, managerial oversight, talent cultivation and cultural atmosphere building – the Company systematically constructs a people-centric, dynamic organizational ecosystem. Highpower Technology has established a comprehensive training and development system covering all employees throughout their entire career lifecycle. Through a competitive remuneration and benefits package, diversified incentive schemes combining short-term and long-term rewards, and a transparent promotion mechanism, the Company collaborates with all staff to share the rewards of development through collective endeavour and unlock boundless potential through innovation.

The future is already upon us, and the tide of change has arrived. Highpower Technology remains steadfastly anchored to its core “Edge AI Power Solutions and Solid-State Battery Technologies” strategy, pursuing a path of independent R&D coupled with open collaboration. The Company focuses intently on application scenarios, client requirements, and user experience, harnessing cutting-edge technologies to ianite new dimensions of creativity. With unwavering conviction, an openminded approach, uncompromising innovation and tenacious endeavour, the Company shall navigate the competitive currents of the industry, proactively embracing and crafting a new chapter of high-quality, sustainable development.

Chairman of Shenzhen Highpower Technology Co., Ltd George Pan

About Highpower Technology

Company Profile

Shenzhen Highpower Technology Co., Ltd. (Stock Code: 001283) is dedicated to the R&D, design, manufacturing and sales of Li-ion batteries and Ni-MH batteries. As an enterprise with independent R&D capabilities and comprehensive internationa market competitiveness, Highpower Technology provides customers with flexible and reliable one-stop battery energy solutions. The Company actively engages in battery recycling and resource utilization, continuously creating substantia value for customers and society. Leveraging our profound technical expertise and extensive product development experience, Highpower Technology has earned the trust and recognition from numerous Fortune 500 companies and leading brands in specialized industries.

Corporate Culture

Vision

Provide world-class clean energy solutions to power the future.

Mission

To solve global customer challenges and pressures; Respond rapidly; Provide safe products and quality service.

Core Values

Delight customers, open minded and shared success, dedication to details, and always improve.

Global Network

Product Sector

New Energy Solutions for Consumer Application Scenarios

Laptops and Peripherals

Smart Wearables

AI Glasses

AI Toys

Embodied AI Robot

Quadrupedal Robotic Dog

Unmanned Aerial Vehicle

Bluetooth Speaker

eVTOL

Smartphone

Personal Care

AI Server BBU (Battery Backup Unit)

Solar-Powered Energy Storage Street Lamps

Lightweight Power

Consumer Retail

AI Earphones/Hearing Aids

TWSOWS Earphones

High-End Security Backup Power Supply

Medical Equipment

Portable Energy Storage

Vehicle-Mounted T-BOX

Energy Storage Application Scenarios New Energy Solutions Products

Commercial and Industrial Energy Storage

Residential Energy Storage

Energy Storage for Telecommunications Base Stations

External Recognition

The Company has steadfastly implemented ESG principles, securing multiple accolades and recognitions across environmental, social and governance domains throughout 2025. Regarding third-party ratings, the Company maintained its A-arade standing in the Wind ESG Rating: its CDP Climate Change Rating adyanced to B. whilst its Wate Security Rating achieved a B- upon first participation. This demonstrates the Company’s consistent improvement in environmental disclosure and management performance.

Honors and Accreditations

Sustainable Development

Honest Governance

Immaculate Quality

2025 AI Tianma Leading Enterprise

Green Planet

Harmonious Life

Market Recognition

Icon Energy Awarded the Excellence in Delivery Pioneer Award (2024 Supplier Evaluation)

Hello Tech

Best Delivery Award

GoerTek Group

SUNMI

Guangdong Highpower Awarded 2024 SUNML Supplier Award – Outstanding Partner

中信银行战略合作伙伴

Strategic Partner China CITIC Bank

Sustainable Development Management

Sustainable Development Strategy

In 2023, the Company unveiled its HIGH Sustainable Development Strategy. This strategy is underpinned by four core pillars: Honest Governance, Immaculate Quality, Green Planet, and Harmonious Life. It deeply aligns the Company's development strategy with the United Nations Sustainable Development Goals, committing to becoming a worldclass clean energy solutions provider and jointly creating a better life for humanity.

SDGs Relationship

Material Issues

• Corporate Governance • Compliance Operations and Risk Management • Anti-Commercial Bribery • Anti-Unfair Competition • Information Security and Privacy Protection • Community Investment Participation

Policies

• Business Ethics Policy

Highlights of Performance in 2025

Major risk incidents: 0

Conducted 5 anti-corruption audits

Information security incidents: 0

Female directors account for 33.33%

Green Planet

Material Issues

• Addressing Climate Change • Emissions and Waste Management • Environmental Manggement • Energy Manggement • Water Resource Management • Ecosystem and Biodiversity Conservation

Policies

• Environmental Policy

Highlights of Performance in 2025

0 major environmental incidents occurred

100% of subsidigries involved in production and mgnufgcturing have obtgined ISO 14001 environmental management system certification

6 products have achieved ISO 14067 product carbon footprint certification Renewable energy usage ratio: 25.34%

SDGs Relationship

Material Issues

• Innovation-Driven Development • Product Quality and Safety • Customer Relationship Management • Circular Economy • Opportunities in Clean Tech • Sustainable Supply Chain • Equal Treatment for SMEs

Policies

• Quality Policy • HSF Policy

Highlights of Performance in 2025

Obtained guality manggement system certifications including Iso 900], JATE 16949, OC080000, and ISO 13485

Focusing on cutting-edge technologies such as flexible conductive films, solidstate batteries, smart wearables, and robotic power supplies, the Company has achieved bregkthroughs and mgss production of key products

358 new patent authorizations were granted, with invention patent authorizations increased by over 150% year-on-year.

R&D Innovation Incentive Amount: RMB 2,096,900

100% signing rate for the Supplier Social Responsibility Commitment Letter

All newly approved production suppliers undergo 100% sustainability audits in accordance with established criteria.

Customer satisfaction rate: 94%

Harmonious Life

SDGs Relationship

Material Issues

• Employee Rights and Benefits • Diversity, Equality and Inclusion • Employee Training and Development • Occupational Health and Safety

Policies

• Social Responsibility Policy

Highlights of Performance in 2025

Employee training coverage rate: 100%

Sustainable Development Management Framework

The Company has established a three-tier ESG governance framework encompassing the decision-making management and operational levels. During the reporting period, the Company further clarified the allocation o responsibilities and designated personnel for relevant operational departments, ensuring accountability at every level. Regarding risk management, the Company has progressively integrated ESG-related risks into its overall risk management systems. A tiered information reporting and oversight mechanism has been established. Based on the significance and impact of sustainability matters, information is conveyed promptly and accurately across all levels through meetings, written communications, and verbal updates. This ensures the systematic and orderly advancement of the Company’s sustainability initiatives

Sustainable Development Governance Framework

• Review risks and significance related to the Group’s ESG issues

• Review and approve the Group’s public disclosure of the ESG-related matters

• Manage ESG-related risks and issues during the Group's routine operations

ESG-Linked Remuneration

The Company has explicitly incorporated ESG performance into the annugl performance evaluation and remuneration structure for senior management. The assessment framework focuses on key social responsibility risk indicators including safety, environmental protection, public crises, major quality incidents, and product compliance rates. Moving forward, the Company plans to progressively integrate critical ESG metrics such as energy management and carbon reduction targets into the assessment scope, thereby continuously strengthening incentives and accountability for management in the realm of sustainable development.

ESG Management Empowerment

The Company actively recruits ESG specialists and continuously refines its ESG training framework, systematically advancing multi-domain, tiered capability development across environmental, social and governance dimensions. Regarding environmental matters, the Company has organized training covering foundational environmenta knowledge, ISO 14001 and 50001 internal auditor certification, RoHS and REACH compliance, energy conservation emissions reduction and waste management for personnel responsible across all departments. For social issues training encompasses promoting Responsible Business Conduct (RBA), product safety emergency response planning, ISO 45001 internal auditor certification, and occupational health and safety training. Regarding corporate governance, the focus is on compliance and risk prevention, including training on new overseas regulations such as the EU Battery Regulation, alongside specialized courses on procurement compliance and anti-fraud measures. Moving forward, the Company will further leverage systematic, regularized training to progressively establish a comprehensive, prioritized, pragmatic and efficient ESG capability development mechanism.

Highpower Technology Conducted ESG-Focused Training Program to Systematically Enhance Sustainable Development Management Capabilities

The Company successfully conducted an ESG-focused training program in September 2025. This session specially invited an ESG partner from ShineWing Certified Public Accountants to serve as expert lecturer. Targeting department heads and designated liaison officers across all divisions, the training systematically covered foundational ESG theory and regulatory policy trends, ESG assurance and rating practices, key considerations for ESG investment and financing, alongside case studies of green finance innovation. Practical sharing and discussions were also facilitated around these topics.

ESG Audit

The Company regularly undergoes third-party corporate social responsibility audits commissioned by clients, strictly adhering to international social responsibility standards and client compliance requirements. During the reporting period, Guangdong Highpower successfully passed EcoVadis (achieving Bronze status), RBA and Sedex (SMETA) audits; Huizhou Highpower successfully passed the RBA audit; Vietnam Exquisite Power successfully passed the Sedex (SMETA) audit. All these represent audits conducted under internationally recognized social responsibility systems and client-commissioned assessments. The Company proactively implemented corrective actions for improvement areas identified during these audits, achieving a 100% overall pass rate for social responsibility audits

Assessment of Material Issues

Based on the Company’s development strategy, industry dynamics, feedback and expectations from internal and external stakeholders and rating agencies, while also taking into account the latest requirements from regulatory bodies, the Company has conducted a systematic analysis and identification of material issues. During the reporting period, the Company updated and adjusted our materiality issues list, conducted an in-depth assessment of the sustainability impacts, risks, and opportunities associated with each issue, and performed a materiality assessment to determine the relevance of each issue to Highpower Technology’s own operations and industry trends, as well as thei

Double Materiality Assessment Process

Establish a List of Issues

The Company conducted a comprehensive analysis of exchange disclosure requirements, mainstream ESG rating criteria, and stakeholder priorities. By benchmarking against industry leaders, it identified 23 potential material issues.

Assessment of Material Issues

Impact materiality assessment: Through extensive stakeholder questionnaire distribution, positive and negative impacts of each issue were evaluated across dimensions including scale, scope, likelihood, and irreparability. This process identified 14 issues deemed materially significant.

è Financial Materiality Assessment: Internal management, investors, company directors, and strategic experts respectively analyzed the likelihood of occurrence and the degree of financial impact (comprehensively considering both costs and benefits, and assessing the effect on "net profit") of risks and opportunities associated with each issue, from short-term (≤1 year), medium-term (1-3 years, inclusive), and long-term (>3 years) perspectives.

Double Materiality Assessment and Analysis: Conducted a quantitative analysis of the outcomes from both impact materiality and financial materiality assessments, presenting the overall priority ranking of each issue through a matrix format.

Issues Review and Confirmation

Following a review and confirmation by the Company, the six issues of highest double materiality this year are: Innovation-Driven Development, Customer Relationship Management, Product Quality and Safety, Sustainable Supply Chain, Occupational Health and Safety, and Addressing Climate Change. These are disclosed with emphasis in this report under the framework of “Governance – Strategy – Impact, Risk and Opportunity Management – Indicators and Targets”.

Due Diligence, Stakeholder Engagement

Due diligence constitutes the core function through which the Company identifies, assesses, mitigates and addresses various ESG risks. The Company focuses on conducting specialized investigations in areas such as supplier manggement with specific detgils disclosed in the relevant subsections

The Company places high importance on two-way communication and relationship maintenance with all stakeholders. For different groups including government bodies, investors, customers, employees, suppliers, partners and communities, the Company balances regular communications with daily interactions, continuously gathering feedback and expectations while providing timely updates on relevant actions and progress.

Honest Governance

Highpower Technology regards the establishment of a robust governance framework as the cornerstone of sustainable development. The Copmany is committed to continuously refining its governance mechanisms and enhancing the resilience of its risk management systems. This ensures the Company can maintain steady progress and create long-term value, while upholding operational responsibilities and addressing stakeholder concerns.

The United Nations Sustainable Development Goals (sDGs) Corresponding to this Chapter Include:

PONERTYRTY 8 DECENT WORK MND 10 REDUCEIES 16 PEAC, SIES INSTITITIOINS

Key Issues

Corporate Governance Compliance Operations and Risk Management Anti-Commercial Bribery Anti-Unfair Competition Information Security and Privacy Protection Community Investment Participation

Corporate Governance

The Company strictly adheres to laws and regulations including the Company Law, Securities Law, Corporate Governance Guidelines for Listed Companies, and the Shenzhen Stock Exchange Listing Rules, alongside regulatory requirements. It continuously refines its modern corporate governance system, centered on the Articles of Association and encompassing the Rules of Procedure for Shareholders' Meetings, Rules of Procedure for Board Meetings, and the Independent Directors' Working System. It clearly delineates responsibilities and authority, ensuring the Company's sustained, compliant, and healthy development.

In 2025, the Company actively responded to relevant regulations issued by the China Securities Regulatory Commission, including the Transitional Arrangements for Implementing Supporting Rules and Regulations under the New Company Law and the Guidelines for Articles of Association of Listed Companies, prioritizing the optimization and upgrading of its corporate governance structure. As a core reform measure, the Company restructured its Three Meetings and One Layer System, abolishing the supervisory board while concurrently establishing the Board Audi Committee as the dedicated oversight body. This committee assumes the statutory supervisory functions previously held by the supervisory board, thereby securing its central position within the governance framework.

Board Diversity

The current members of the Company's Board of Directors possess diverse industry backgrounds and extensive professional theoretical and practical experience, with expertise spanning materials science and technology R&D, finance and accounting, management and strategy. Among the nine directors, three are female, playing vital roles in key areas including corporate governance and disclosure, financial accounting, and representing employee interests. This significantly enhances the Board's inclusivity and the breadth of its decision-making perspectives.

Proportion of independent directors on the Audit Committee

Proportion of independent directors on the Remuneration Committee

66.67%

Proportion of independent directors on the Nomination Committee

66.67%

Board Effectiveness

The Company has established a closed-loop management mechanism comprising "professional screening process oversight and periodic evaluation" to align with core strategic development requirements. During the director nomination phase, the Nomination Committee focuses on core domains such as accounting and finance corporate strategy, and materials science and technology R&D. It rigorously screens candidates possessing profound professional expertise and practical experience. Candidates undergo a three-tiered progressive process: "Nomination Committee review → Board deliberation → Shareholders' meeting election". Each stage rigorously assesses their independence, professional competence, and alignment with the Company's requirements, while ensuring voting procedures are conducted in strict compliance with legal and regulatory requirements. The Company conducts annugl effectiveness assessments of the Board as a whole, its speciglized committees, and all directors (includino independent directors) through a combination of self-assessment and external assessment: independent directors submit written performance reports for self-reflection, with the Board conducting collective evaluations based on their annual performance. The Board and committees review the standardization and effectiveness of their annua work through questionnaires or thematic meetings, focusing on meeting procedures, decision-making quality, and communication and coordination with manggement

Investor Relations Management

The Company places great emphasis on investor relations management. Through multiple channels including shareholders' meetings, earnings briefings, on-site investor visits, and the Shenzhen Stock Exchange's Interactive Platform, the Company promptly understands and addresses investors' expectations and concerns. Within the scope permitted by information disclosure regulations, the Company timely communicates the latest operationa developments, performance results, and strategic plans to investors

Protection of Investors' Rights

The Company imposes strict controls over connected transactions that may prejudice the interests of investors ensuring that all such transactions are conducted in line with the Company's normal operations and actual business needs. By improving its internal control system and strictly complying with approval procedures, the Company safeguards the fairness and reasonableness of each transaction, and effectively protects the legitimate rights and interests of all investors. The Company attaches great importance to shareholder returns and shall distribute dividends by means of cash, stocks, a combination of cash and stocks, or other methods permitted by laws and regulations. Provided that the Company is profitable and its cash flow is sufficient to meet its ongoing operations and long-term development, the Company shall prioritize cash dividends for profit distribution. The Company's profit distribution shall not exceed the limit of its accumulated distributable profits and shall not impair its sustainable operational capacity.

Compliance Operations and Risk Management

Risk Management

The Company aligns its risk management framework with operational development objectives, embedding fundamental risk management processes throughout all stages and aspects of business operations. A risk management organizational structure comprising three lines of defense has been established, with functiona departments systematically identifying, communicating and effectively mitigating significant risk matters. Throughout 2025, the Company experienced no major risk incidents.

Three Lines of Defense in Risk Management

The First Defense

The Second Defense

Each subsidiary, each system and business unit (BU)

Identify and respond to potential risks in the first time to ensure robust and efficient business operation

Each department

Assessment of the risks faced by the Company, in order to develop scientific and reasonable risk management strategies and measures for the Company

The Third Defense

Audit department

Responsible for comprehensively supervising and assessing the effectiveness of the entire risk management system, ensuring the implementation of risk management measures, and providing a safeguard for the Company's stable operation

Procurement Legal Risk Prevention and Compliance Management Training

The Company conducted a training program on Procurement Legal Risk Prevention and Compliance Management in March 2025, covering all personnel from relevant departments liaising with suppliers, including the Procurement Center and Equipment Platform Department. A total of 75 individuals participated in the training. The program comprehensively addressed key risk prevention points throughout the entire procurement contract signing and fulfilment process, as well as the dispute litigation process. This effectively enhanced participants' awareness of procurement legal risks and strengthened their compliance management capabilities.

Internal Audit

The Company has established regulations including the Internal Control System, Internal Audit System, and Emergency Crisis Management System for Unexpected Events. Based on the annual operational policy, an internal audit plan is formulated to conduct independent and impartial internal audits across all business modules, implementing integrity and compliance oversight while investigating and addressing non-compliant conduct. During the reporting period, no significant risks were identified through the audit process.

Key Performance in 2025

5 special internal audits were conducted, covering such areas as the operation and management of Highpower Supply Chain, quality management, seal management, sales management and equipment procurement management.

external compliance audits were carried out, including 4 audits of raised fund management, 2 audits of external guarantee, 2 audits of connected transactions, 2 audits of foreign exchange hedging and 1 audit of internal control evaluation report.

Business Ethics Management

Anti-Commercial Bribery

The Company has formulated and implemented internal regulations including the Anti-Fraud Managemen System and the Code of Employee's Conduct and Discipline Management Regulations of Highpower Technology establishing and refining an anti-fraud risk prevention and control mechanism characterized by clear delineation of responsibilities, well-defined priorities, and robust measures. During the reporting period, the Company revised and optimized the Anti-Fraud Management System, further upgrading and enhancing its anti-fraud management framework

Training Program on Corporate Anti-Fraud Investigations and Detailed Analysis of Common Offences

The Company conducted a training program entitled Corporate Anti-Fraud Investigations and Detailed Analysis of Common Offences in December 2025. Targeted at personnel from key departments including the Procurement Center, Equipment Platform Department, and Warehouse Management Department, the training covered core topics such as fundamental concepts of fraud, the costs of fraudulent practices common fraudulent behaviors and analysis of associated offences, alongside the Company's anti-fraud measures and integrity initiatives. This effectively strengthened participants' awareness of integrity and self-discipline, as well as their ability to identify anti-fraud risks

Audit Committee

The leadership body for antifraud work, responsible for guiding and overseeing the Company's anti-bribery, anticorruption, and anti-fraud efforts.

Senior Management

Responsible for establishing, improving, and implementing the internal control system to prevent fraudulent behavior, and for taking appropriate and effective corrective actions against fraud. Senior management is supervised by the Board of Directors, Audit Committee, and Audit Department.

Audit Department

The standing body responsible for the Company's antifraud work and handling whistleblowing. It is in charge of implementing the anti-fraud initiatives, including registering and handling reports, organizing investigations and assessments of anti-fraud incidents, and providing recommendations for handling and accountability.

Key Anti-Fraud Measures

Strengthening Integrity Culture Development

The Company routinely cultivates and promotes integrity culture through diverse initiatives. Upon joining, every employee must read the Code of Employee's Conduct and Discipline Management Regulations of Highpower Technology, with particular emphasis on business ethics. Regular training sessions on relevant laws, regulations, and professional ethics are provided to staff. Internal case studies are utilized for cautionary education, guiding all employees to consciously uphold integrity in their professional conduct and fostering a pervasive atmosphere of rigorous standards and reverence for integrity. For suppliers, the Company requires the signing of an Integrity Agreement during the supplier onboarding process, thereby guiding and enhancing their awareness of integrity and self-discipline. In 2025, the Company drived 45 key suppliers to sign the Integrity Agreement.

Conduct Regular Anti-Corruption Risk Assessments

The Company conducts regular self-assessments of its internal controls. It identifies key control points for fraud risks, evaluates the development and effectiveness of anti-fraud systems and procedures, and promptly reviews and analyzes significant fraud incidents to formulate targeted prevention and control measures.

During the reporting period:

Conducted anticorruption audits:

5 _times

Strictly Investigate and Deal with Corruption Issues

The Company has consistently upheld a zero-tolerance principle towards corrupt practices, drawing profound lessons from various corruption cases. Relevant units were organized to thoroughly investigate root causes and conduct in-depth reviews. By strengthening rigorous employee education, management and oversight, the Company further refined its institutional framework and strictly adhered to management procedures, thereby preventing recurrence of similar issues at source. In 2025, the Company investigated and resolved three cases of corruption and misconduct, resulting in disciplinary action against seven individuals. Additionally, cooperation with eight suppliers ha been suspended due to non-compliant practices on their part

Anti-Unfair Competition

The Company steadfastly upholds the fundamental principle of fair competition, strictly adhering to the requirements of the Anti-Unfair Competition Law of the People's Republic of China and the laws and regulations of each operational region. Through the establishment of internal systems such as the Anti-Unfair Competition Management Procedures and the Fair Trade and Competition Management Procedures, and by incorporating anti-unfair competition training into the business ethics education system for new employees, it continuously builds a comprehensive compliance manggement framework The Company regards safeguarding a heglthy market economy order and upholding fairness and justice as its duty. It earnestly protects the legitimate rights and interests of consumers and fellow operators, actively collaborating with all sectors of society to jointly resist all forms of unfair competition Concurrently, it proactively engages with industrial and commercial authorities and other governmental regulatory bodies, fully cooperating with oversight and verification of its business activities. It maintains a zero-tolerance stance and resolutely combats any violations that disrupt market order. During the reporting period, the Company had no litigation disputes or significant administrative penalties related to unfair competition or anti-monopoly matters.

ISO 27001 Certification

Whistleblowing Management

The Company has established internal management systems including the Whistleblowing Management System and the Fraud Case Handling Management System. These clearly define reporting criteria, scope of application, and investigation procedures, while also specifying detailed safeguards for whistleblower rights to alleviate concerns about reporting.

The Company actively establishes a multi-channel whistleblowing mechanism, providing employees and externa partners with diverse feedback pathways including dedicated email addresses, online platforms, and offline contact points. This ensures that all improper conduct violating business ethics or breaching laws and regulations is promptly identified and addressed. For all reported leads, the Company adheres to rapid verification and precise evidence collection, subsequently refining management mechanisms through post-incident reviews to prevent recurrence of similar issues at source. The Company actively encourages employees and external partners to proactively disclose dishonest or non-compliant conduct. Where the Audit Department verifies the validity of a report and the disclosure demonstrably recovers losses for the Company, the whistleblower shall receive a reward.

Whistleblowing Channels:

	Whistleblowing Email	HpShenji@highpowertech.com
[wxy2]	Whistleblowing Address	Audit Department, Building A7, 68 Xinsha Avenue, Pinghu Subdistrict, Longgang District, Shenzhen
[Yw7Z]	Whistleblowing WeChat ID	HpShenji
	Feedback on the Cadre Work Issues	Whistleblowers may report concerns to Highpower Technology's Human Resources Department via online or offline channels
	Face to Face Report	Whistleblowers may directly report issues to the relevant personnel in Highpower Technology's Audit Department

Whistleblower Protection Measures:

田 The Company's Audit Department shall maintain strict confidentiality regarding all whistleblower reports and related information.

Any form of discrimination or retaliation against whistleblowers or employees participating

Individuals found to have unlawfully disclosed whistleblower information or engaged in retaliatory actions against whistleblowers shall be dismissed from their posts and have their referred to judicial authorities for legal proceedings.

Information Security and Privacy Protection

The Company strictly adheres to relevant laws and regulations including the Cybersecurity Law of the People's Republic of China, the Data Security Law of the People's Republic of China, and the Personal Information Protection Law of the People's Republic of China. The Company has formulated and implemented rules and regulations such as the Information Security Management Manual and the Information Security Risk Management Procedures, establishing a robust information security management system and ensuring its continuous and effective operation. As of the end of the reporting period, the Company has obtained ISO 27001 certification and maintains the system's ongoing effective operation.

The Company has established a three-tier information security governance framework, spearheaded by the Information Security Management Committee, coordinated by the Secretariat (IT Management Department), and implemented by the Information Security Specialist Group and relevant functional departments. This structure comprehensively fortifies the Company's information security defense

Information Security Organizational Structure of Highpower Technology

Information Security Management Committee

Secretariat (IT Management Department)

Audit & Inspection Group

Organization Performance Appraisal Group

Departmental Groups Systems /Business Units

IT Technology

Legal Group

Daily Management of Information Security

The Company continues to deepen its comprehensive information security management, establishing a robust, routine technical management system for information security, implementing stringent measures to prevent information leakage, and formulating and executing business continuity safeguards. These efforts collectively build a solid security barrier to ensure the stable operation of the Company's business.

Information Security Management Technology

Data Encryption System

Enhance the security safeguards for research and development data to prevent unauthorized access and retrieval by unauthorized personnel.

0 Desk Management System

Control and monitor terminal activities such as data transmission, copying, internet access, file printing, and software installation on office terminals to ensure comprehensive protection of company and client data.

0 Web Application Protection System

By safeguarding the Company's internet-deployed services through the system, it enhances operational security and mitigate security risks. During the reporting period, Highpower Technology successfully intercepted over 40,000 instances of various web application attacks.

Bastion Host System

Strictly control supplier access to the production network. After entering via VPN, access to designated production terminals is permitted only through a bastion host with time-limited access, ensuring that all relevant operations are effectively controlled and recorded.

Business Continuity Assurance Measures

Enhance IT Operations Monitoring and Early Warning

Continuously utilize the IT Unified Operations Monitoring and Early Warning Platform to optimize monitoring thresholds and alert rules for all business systems, servers, networks, databases and other system equipment, thereby enabling the timely detection and rapid resolution of issues

Conduct Multi-Scenario Emergency Drills

Conduct emergency drills centered on scenarios such as viruses, security breaches, data centered power outages, critical network hardware failures, carrier network disruptions, and severe system unavailability. These exercises validate the feasibility and completeness of contingency plans while enhancing personnel's emergency response capabilities.

Information Security Risk Prevention and Control

The Company strictly adheres to the ISO 27001:2022 management system standard, routinely conducting information asset identification and implementing specialized risk assessments for critical information assets. Technical and managerial measures are employed to continuously mitigate information security risks. The Company has formulated and implemented an Information Security Emergency Response Plan, categorizing and grading information security incidents while establishing corresponding emergency protocols to ensure timely and appropriate handling of security events. In 2025, the Company experienced no information security incidents

Moreover, in response to sudden information security incidents within the industry, the Company promptly activated its emergency response mechanism. The IT Department, the Integrated Supply Chain Digitalization Department and leading security vendors jointly conducted a comprehensive risk assessment and evaluation of the Company's existing information security framework. Concurrently, an information security capability enhancement plan was formulated, with a particular focus on strengthening targeted defenses against cyberattacks and ransomware attacks.

Information Security Culture Development

The Company actively cultivates an information security culture through diverse channels and varied formats: incorporating information security training into the mandatory induction program for new employees, organizing irregular thematic study sessions and assessments on information security, and continuously disseminatin specialized awareness materials via online channels. These materials cover data protection, endpoint security email security, phishing prevention, personal privacy safeguarding, and customer information protection, thereb comprehensively enhancing staff awareness of information security risk prevention.

During the reporting period:

5 information security induction training sessions were conducted for new employees, covering 293 individuals.

The Cloud Classroom program Information Security Awareness Training 2025 achieved 100% coverage among company staff and auxiliary office personnel, including training and assessment.

Online information security awareness campaigns achieved 100% coverage.

Community Investment Participation

Rural Revitalization

Leveraging its resource and capability advantages, the Company has continuously expanded and stabilized its workforce scale. It has advised local authorities on rectifying irregularities in labor dispatch practices, actively employed individuals who have been lifted out of poverty, and steadily advanced initiatives such as educationa revitalization and industrial revitalization. During the reporting period, the Company provided employment to 277 individuals who had been lifted out of poverty and donated RMB 30,000 to the rural revitalization activities in the Tonghu Ecological Smart Zone.

Community Participation

The company has consistently regarded the fulfilment of social responsibility as an intrinsic part of the corporate DNA and a fundamental mission. Since establishing the Sunshine Education Foundation in 2011, the Company has steadfastly upheld the principle of “contributing compassion and benefiting society”, translating its corporate vision of “co-creating a better life for humanity” into tangible action. The Company makes fixed annual allocations to the foundation's account while encouraging voluntary employee contributions. As of the end of the reporting period, the foundation had disbursed over RMB 1.626 million in cumulative donations, supporting more than 1,500 students across over 26 schools.

Note: Regarding the restatement of information in the 2024 ESG Report, as of the end of the reporting period in 2024, the cumulative donation amount by the Foundation actually stood at RMB 1.551 million. The discrepancy in the originally disclosed data is due to differences in the statistical criteria used by the system. The data included in this restatement is complete and fully traceable.

Case

Sunshine Scholarship Empowers Rural Education

In 2025, the Company launched an educational scholarship and poverty alleviation initiative targeting six town-run primary schools in Ma'an Town, Huicheng District, Huizhou City, Guangdong Province. On the one hand, scholarships were awarded to pupils demonstrating outstanding academic achievement o recipients of district-level honors or above, encouraging students to strive for excellence. On the other hand, living supplies subsidies were provided to primary school pupils from households receiving the Five Guarantees Program, alleviating their families' burdens and conveying social warmth. This initiative involved an investment exceeding RMB 70,000, benefiting over 400 students and providing tangible support for local educational development.

The Company continues to broaden its educational support initiatives, focusing not only on advancing university education but also on enhancing primary education facilities. During the reporting period, Huizhou Highpower donated RMB 100,000 to Shangliao Primary School in Ma'an Town, specifically earmarked for establishing a library reading room This initiative creates a superior learning environment for rural children, actively promoting educational equity through tangible action.

Highpower Technology Supports University Education Development Program

2018–2025

Annual donation of RMB 600,000 to support educational development at Central South University

2021–2025

Annual donation of RMB 500,000 to the South China University of Technology Education Development Foundation

02 Immaculate Quality

Highpower Technology, with innovation as its core engine, deeply integrates clean technology with circular economy principles. The Company continuously enhances product quality, strengthens core technological capabilities, and elevates product safety standards. Through meticulous management, the Company deepens client trust and advances sustainable supply chain development under the philosophy of pooling strengths for mutual success. This approach creates enduring value for its customers, partners, and society.

The United Nations Sustainable Development Goals (sDGs) Corresponding to this Chapter Include:

▶ Key Issues

Innovation-Driven Development Product Quality and Safety Customer Relationship Management Circular Economy Opportunities in Clean Tech Sustainable Supply Chain Equal Treatment for SMEs

Innovation-Driven Development

Governance

The Company adheres to the development philosophy of “technology-driven, innovation-led”, deeply integrating the Integrated Product Development (IPD) management system, establishing a tiered, generation-based R&D strategy of "planning one generation, incubating one generation, developing one generation, and deploying one generation". This has formed a 4-level R&D System centered on forward-looking research, new materials and platform development, new product design and development, and new process and equipment development. It achieves seamless integration across the entire chain of theoretical exploration, technological breakthroughs, process transformation, and intelligent manufacturing, fostering a cross-departmental, interdisciplinary matrix innovation ecosystem.

The Company has established a series of regulatory documents, including the Integrated Product Development (IPD), which clearly define technical planning and project initiation procedures. These encompass specific technical activities such as new materials and processes development, new formulation development and new platform development, ensuring orderly advancement of R&D across all domains. Concurrently, supporting process specifications have been implemented for emerging and critical areas— including new equipment requirements, external collaborative project management, and AI-enhanced simulation model development—to comprehensively enhance the management standards and development efficiency of scientific research projects.

Strategy

R&D Incentive Awards Ceremony

Impact, Risk and Opportunity Management

The Company has established a routine mechanism for monitoring and responding to R&D-related risks and opportunities, covering the entire chain from talent pipeline development and open innovation collaboration to breakthroughs in key technologies and intellectual property management.

Monitoring and Identification

Regularly monitor developments in end-product applications, conduct scenario testing and product analysis, systematically collate the latest patents and literature, to continuously identify innovation-related risks and opportunities.

Assessment and Response

Conduct literature and patent reviews of preliminarily identified information alongside peer expert consultations, organizing internal expert evaluations. Upon confirmation, adjust technical approaches or R&D methodologies as appropriate and implement accordingly; for significant risks or opportunities, activate dedicated mechanisms for closed-loop management.

R&D Talent Development and Motivation

Talent Recruitment

The Company is vigorously advancing internal and external talent acquisition mechanisms to continuously optimize its talent pipeline development. Internally, it routinely publishes vacancy notices and encourages staff to compete for positions. Externally, it drives targeted recruitment and strategic talent reserves through open recruitment, campus hiring, and university-industry collaborations.

Talent Development

Centered around technical exchange seminars, the Company integrates three major initiatives—namely, the “Tech Masterclass”, “Open Tech Courses”, and “Learning & Development Programs”—to establish a comprehensive capability enhancement system for R&D talent. This system follows the cycle of “External Input – Efficient Collaboration – Deep Assimilation – Continuous Iteration”, thereby empowering R&D teams to upgrade their competencies and achieve business breakthroughs.

Tech Masterclass

Four sessions of the tech masterclass on R&D system were conducted, featuring invited external technical experts who shared cutting-edge technological achievements, with over 300 participants in attendance.

Technical Exchange Seminar

A technical experience sharing platform was established, and three technical exchange seminars were held within the R&D system, reaching an audience of over 600.

0 Open Tech Courses

Five sessions of open tech courses were launched within the R&D system, cumulatively reaching an audience in excess of 500.

0 Learning & Development Programs

Two learning and development programs, including the “Professor Pan Feng Lecture Series”, were implemented, cumulatively reaching an audience of over 800.

R&D Talent Competency Enhancement System

Talent Motivation

The Company has formulated the Internal Innovation Reward Measures and the Incentive Management Measures for Key R&D and Technology Projects. These policies are designed to anchor the strategic direction and key objectives of the R&D system, thereby establishing a “Timely + Project-Based” dual-tier incentive system to facilitate the achievement of R&D strategic targets.

Timely Incentive

The monthly Starlight Award incentive scheme has been implemented on a regular basis, with nine editions completed to date, recognizing over 560 individuals. Concurrently, the quarterly special incentive program has been rolled out across three editions, covering more than 30 recipients

Project-Based Incentive

Centered on flagship products, key technology projects, and the achievement of R&D cost-reduction targets, incentive allocation drives R&D personnel to accomplish critical tasks. By the reporting period’s end, the scheme had encompassed 42 flagship products and key technology projects, five major special projects, and seven product development cost-reduction initiatives, with coverage projected to extend to over 50% of R&D personnel

During the reporting period:

Research and Development Innovation Incentive Amount: RMB 2,096,900

Number of personnel incentivized for R&D innovation: 1,232

Advancing Open Innovation

The Company upholds an open and mutually beneficial industry ecosystem philosophy, establishing a proactive and systematic open technology cooperation mechanism. Guided by clearly defined product and technical requirements, the Company combines targeted outreach with participation in industry exhibitions and technical forums. Following technical exchanges, the Company initiates internal evaluations; should outcomes meet expectations, it advances dedicated collaborative projects. This approach is formalized through the External R&D Collaboration Project Management Process, ensuring standardized implementation.

In 2025, the Company systematically advanced open innovation centered on its core “Edge AI Power Solutions and Solid-State Battery Technologies” strategy. In industry-academia-research collaboration, the Company deepened partnerships with multiple universities to develop cutting-edge technologies including solid-state batteries and highvoltage cathode materials. Concurrently, it actively expanded international cooperation, jointly developing a highenergy-density battery with pure silicon anode alongside a leading European materials R&D firm. This collaboration targets a 50%+ increase in energy density. To date, thousands of prototype batteries have been jointly produced and delivered to global top-tier clients for testing.

R&D Highlights and Breakthroughs

The Company achieved significant results in research and development and innovation in 2025, with a total of 482 new R&D projects launched. These projects spanned multiple product sectors and yielded several major breakthroughs in key technologies. Thanks to its outstanding capabilities, the Company was honored with prestigious awards such as the Gaogong Golden Globe Award - Annual Innovation and the 2025 AI Tianma Leading Enterpris Award.

2025 R&D Highlights and Breakthroughs

High Voltage and High Energy Density

Low Expansion

High Security

Needle penetration test: φ3mm & 25±5mm/s Non-flammable, non-explosive

LCO platform: 4.45–4.55V / 760–950Wh/L NCM platform: 4.35–4.45V / 600–750Wh/L

Use in Low-Temperature Environments

-20℃ \~0℃

Low Heat Generation

Battery surface temperature ≤45℃

Extended Service Life

≥500 cycles, capacity retention rate ≥80%

Seven Key Performance Features of Ultra-High Security “Soft-Armor Solid-State Battery”

During the reporting period, the Company conducted specialized training on “Techniques for Cultivating High-Value Patents” for all R&D personnel. This program systematically covered methods for identifying high-value patents, offensive and defensive strategies, drafting practices, and illustrative case studies. The initiative effectively enhanced the quality of technical disclosures within the R&D team and improved the efficiency of patent application processes.

Specialized Training Facilitates Cultivation of High-Value Patents

During the reporting period:

Number of individuals receiving patent awards: 580

R&D Honors

Patent incentive payments exceeded RMB

1.41 million

The Company has established internal management systems including the Patent Application Process, Project IP Management Process, Regulations on IP Application & Incentive Program, providing robust institutional safeguards for the creation, utilization, protection, management, and incentivization of intellectual property. As of the end of the reporting period, Huizhou Highpower, and Springpower Technology have all obtained GB/T29490-2023 Intellectua Property Management System certification.

Intellectual Property Management

During the reporting period, the Company systematically enhanced intellectual property management across multiple dimensions, including institutional development, process optimization, and system support. The Company revised and updated the Regulations on IP Application & Incentive Program, further emphasizing the weighting of high-value invention patents to drive continuous improvement in patent quality. For key projects, patent quality control was implemented at an earlier stage, with meetings conducted to thoroughly explore technical disclosures and establish patent content frameworks Concurrently, it strenathened the review of pgtent application and examination response documents to elevate their quglity The intellectugl property manggement system's intelligence module wgs formglly launched, providing patent intelligence support for technological R&D. Invention patents constituted over half of the company’s new patent applications for the year, with a substantial increase in newly authorized invention patents Three key patent portfolios were established around core domains, significantly optimizing patent quality and output structure

Indicators and Targets

The Company established scientific and technological innovation targets, including R&D expenditure, the number of patent applications, and the proportion of invention patent applications. All these targets were achieved by the 2025 fiscal year.

Opportunities in Clean Tech and Circular Economy

Highpower Technology adheres to a green design philosophy, embedding circular economy principles at the very core of its products. It actively pursues green technology research and development, driving a paradigm shift from resource consumption to value regeneration.

Aiming for the 2050 net-zero target, deploying cuttingedge breakthrough technologies.

All ESG outcomes must be underpinned by a data foundation that is measurable, reportable and verifiable.

Shifting from single-product innovation to integrated solutions, reshaping the industrial chain ecosystem

Firmly believing that green technology must deliver both environmental value and commercial competitiveness to achieve impact at scale.

Battery Recycling and Circularity

Highpower Technology, leveraging the battery recycling qualifications held by its affiliate Ganzhou Highpower, actively promotes the recovery, utilization and environmentally sound treatment of spent batteries and battery waste Together, we are establishing a comprehensive lifecycle value chain system for spent batteries and their waste, encompassing recovery, resource utilization and remanufacturing, thereby achieving synergistic development of economic and environmental benefits

Affiliated Company Battery Recycling Process

After evaluating the power batteries of retired new energy vehicles, priority shall be given to cascade utilization to save resources to the maximum extent.

The combination of physical method and pyrometallurgical method is used to preliminarily separate various metals from discarded batteries and discarded batteries after cascade utilization

The affiliated company uses the patented power battery recycling technology with its own intellectua property rights to smelt the pretreated battery powder into metal salt products

Developing green products

Based on clean technology and circular economy principles, the Company has systematically established a produc lifecycle management framework encompassing the entire process from green materials to green production and green packaging. It is committed to developing low-carbon, safe, and recyclable green products.

Green Materials

At the level of green materials, the Company actively promotes the substitution of environmentally friendly materials and the development of recycled materials, steadily increasing the proportion of recycled content in products to achieve efficient resource utilization and carbon reduction at source. By the reporting period, Highpower Technology had successfully facilitated UL 2809 certification or ISO 14021 declarations for ten key materials from its suppliers Concurrently, it assisted two major lithium battery strategic clients in achieving UL 2809 certification for thirteen products, while securing UL 2809 certification for forty-three nickel-metal hydride products

Research and Development Philosophy/Objectives

Increase the proportion of recycled materials used in products

Research and Development Philosophy/Objectives

Using more environmentally friendly materials

2025 Application Case

• The proportion of recycled materials utilized in Ni-MH Batteries has been further increased, with the recycled content in certain products now certified to UL 2809 standards.

• Some customers’ new laptop models utilize 100% recycled cobalt.

• Procurement volume of recycled lithium cobalt oxide increased by 160% year-on-year.

• The plastic casing products have now adopted the LUPOY ER1008RFN plastic material, which is a composite of 50% recycled material and virgin material.

2025 Application Case

• Material development for Bluetooth speaker products has resulted in the creation of an environmentally friendly electrolyte through optimization of electrolyte additives. Actual megsurements indicate PS levels below 1,000ppm within the cells (PS being an electrolyte additive explicitly restricted under the EU's REACH regulation)

• The application of more environmentally friendly non-fluorinated binders to replace PVDF in battery cell products, whilst maintaining the electrochemical performance, process compatibility and mass production feasibility of the cathode system, has undergone material validation and review.

Completion of the Technical Validation for Recycled Copper

The Company successfully completed technical validation of 4μm-thick, 100% recycled copper in 2025. The developed recycled copper production process is identical to that for virgin copper, with finished products exhibiting identical purity and performance characteristics to primary copper foil. The technology has demonstrated feasibility for large-scale production and application, thereby facilitating the further integration of renewable materials into products.

Case

Development of High-Nickel Ternary and Recycled Lithium Cobalt Oxide Series Li-ion Batteries

In response to the EU’s New Battery Regulation and market demand for high-safety, low-carbon batteries, the Company initiated and completed the development and mass production preparation of high-nickel ternary and recycled lithium cobalt oxide batteries. Through R&D of key processes including high-nickel low-cobalt cathodes, recycled lithium cobalt oxide, and PVDF-free coated separators, the Company successfully launched high-energy-density, high-safety, longlife batteries. Through the development of key technologies including high-nickel, low-cobalt cathodes, recycled lithium cobalt oxide, and PVDF-free coated separators, the Company has successfully launched high-energy-density, highsafety, long-life batteries. These products meet the environmental requirements of both the Chinese and European Union markets and have obtained CB certification.

Case

Development of Low-Carbon Ni-MH Batteries

The Company is committed to reducing carbon emissions throughout the product lifecycle. Verified by the internationally recognized Carbon Trust Assurance, four Ni-MH Battery models achieved carbon emission reductions of 8% to 24% by 2024 compared to the 2022 baseline, demonstrating significant carbon reduction outcomes.

Green Production

The Company rigorously implements clean production principles, driving resource efficiency through technologica innovation to continuously reduce energy and material consumption in production processes. In energy management, the Company systematically advances the development of energy management systems, energysaving technological upgrades, and clean energy utilization, while continually optimizing energy consumption structures. Regarding material consumption optimization, a dual-track approach of “horizontal expansion and vertical deepening” is adopted. Horizontally, best practices are shared across units; vertically, focus is placed on key production lines to conduct in-depth process optimization. Combined with lean management, parameter adjustments, and technological upgrades, this effectively reduces resource consumption. By 2025, the Company’s comprehensive energy consumption intensity decreased by 6% year-on-year, while material loss intensity decreased by 27% year-on-year.

Green Packaging

The Company prioritized paper or biodearadable plastics in product packaging desian and actively incorporates recycled materials. These approaches have been successfully implemented across multiple products and delivered to customers. Concurrently, the Company has entered into packaging material recovery agreements with downstream clients to jointly advance product packaging recycling cycles. During the reporting period, the total weight of recovered packaging materials and pallets reached 544.90 tonnes.

Green Packaging Applications of Efficient Recycling and Upcycling of Glulam Pallets

During the reporting period, the Company has implemented laminated engineered wood pallets across multiple projects, utilizing the “laminated directional reorganization process” alongside formaldehydefree bio-based adhesives and anti-mold/antimicrobial coating technology. Results indicate that recycled laminated wood pallets exhibit a 35% increase in load-bearing strength and a service life 2.5 times longe than conventional recycled pallets. Each recycled pallet reduces timber consumption by 12kg, while production costs are 28% lower than newly manufactured pallets, delivering both environmental and economic benefits. The Company plans to advance pallet recycling initiatives, targeting a recycling rate of no less than 60% for laminated wood pallets

Product Quality and Safety

Governance

The Company adheres to a quality management policy of “high-quality management, customer oriented, excellence and continuous improvement”, establishing a scientific and comprehensive quality management system centered upon these principles. By the end of the reporting period, 100% of the Company’s stable manufacturing bases had obtained international quality system certification. In terms of organizational structure, an Integrated Supply Chain Quality Management Department, directly overseen by senior management, has been established to oversee quality strategy and execution. Its subordinate business unit quality control teams collaborate with platform quality contro departments to achieve systematic and in-depth deployment of quality management activities. During the reporting period, the Company experienced no major liability incidents related to the health, safety, or quality of its products or services.

Strategy

Impact, Risk and Opportunity Management

The Company systematically conducts annual scans of both internal and external environments to comprehensively identify risks and opportunities pertinent to the quality system. These are dynamically assessed and categorized according to their likelihood and severity. For medium-to-high risk items and significant opportunities, the Company formulates and implements specialized countermeasures, and is conducting ongoing monitoring and tracking.

Quality Management Throughout the Entire Life Cycle

The Company has always adhered to the philosophy of “starting with the customer, ending with the customer”, and has established an end-to-end quality management system covering the entire product lifecycle, based on the structured processes of Integrated Product Development (IPD) and a systematic documentation framework. This system encompasses key stages such as customer requirements analysis, product design, incoming materials control, the manufacturing process and delivery services, and is dedicated to providing customers with stable, safe and reliable products and experiences.

Design and Development Management

Raw Materials Management

• Adhering to a customercentric approach and drawing on market research, the Company defines the key performance indicators for the product and produces a comprehensive product requirements document

• By introducing Design Failure Mode and Effects Analysis (DFMEA) potential risks are identified and mitigated at an early stage; utilizing Design of Experiments (DOE) methods, material formulations and structural designs are scientifically optimized, thereby embedding safety and reliability at the very outset.

• Rigorously implement the phase review mechanism and organize crossdepartmental collaborative reviews to ensure quality control and clear objectives at each R&D milestone.

• A rigorous supplier qualification mechanism has been established, with joint development and early-stage quality risk assessment being promoted. supplier tiered management, performance monitoring, and continuous enablement are implemented

• Assess raw material suppliers’ capacity to manage hazardous substances and require them to sign environmental protection agreements to ensure that the finished products delivered comply with domestic and international environmenta regulations.

• The Incoming Materials Inspection Specificatior has been formulated and implemented, with highprecision testing equipment deployed to conduct rigorous inspections of key raw materials. Building upon this foundation, the Company has also established a blockchginbased end-to-end traceability system, achieving full-chain traceability from procurement to production usage, thereby further enhancing supply chain transparency and security.

Process Management

• Statistical Process Control (SPC) is widely applied, and automated online inspection equipment is deployed, achieving 100% online monitoring of critical processes.

• Process technologies and equipment parameters are continuously optimized to enhance the firstpass yield rates, steadily advance the transformation towards intelligent manufacturing, effectively reduce human errors, and ensure product consistency and long term reliability.

Customer Management

• A quality service mechanism spanning the entire product lifecycle—from produc introduction, prototype verification, and trial production validation to mass delivery—has been established, with dedicated personnel assigned to be responsible for quality coordination and support at each stage.

• In response to customer feedback, an efficient complaint and suggestion handling process has been established, followed by in-depth root cause analysis, the promotion of corrective and preventive actions, and the realization of a closed loop in quality management for continuous improvement.

Hazardous Substances Control

The Company, guided by regulations such as the Hazardous Substances Identification Procedure and driven by customer requirements, proactively researches the latest demands including the EU's new battery regulations. It engages third-party specialists to deliver specialized training on hazardous substances management, systematically fortifying the green compliance baseline for its products

Formulation and Material Selection Optimization

Prioritize the use of low-toxicity or non-toxic materials and formulation designs, with all raw materials compliant with internationa certifications such as RoHS and REACH, thereby preventing the intake of harmful substances at source.

Reinforced Finished Product Inspection

Whole-Process Control of Hazardous Substances

Conduct testing of finished products for hazardous substance content to ensure compliance with national and industry standards, whilst commissioning authoritative bodies to perform third-party testing and issue compliance reports.

Process Technology Upgrade

Promote full-process automation to minimize exposure to hazardous substances; implement enclosed operations for processes involving high-risk chemicals to reduce leakage risks.

Guangdong Highpower QC 08000:2017 Certification

Supply Chain Traceability Management 04

Conduct assessments of suppliers’ hazardous substance control capabilities and sign environmental protection agreements; establish a traceability mechanism for raw materials to ensure the origin of hazardous substances can be traced.

Huizhou Highpower QC 08000:2017 Certification

Enhance quality standards

In 2025, the Company further strengthened quality coordination management between the group platform and individual manufacturing units, whilst continuing to optimize quality control standards. Unannounced inspections were conducted based on customer requirements, specialized quality improvements, and compliance with documented procedures. The Company has continued to introduce advanced testing instruments, effectively managing potentia quality and safety risks. Regarding personnel and cultural development, the Company systematically enhances employees’ quality awareness and professional competence through multi-tiered, diverse quality training programs and cultural initiatives.

Newly Added Instruments and Equipment

Keyence 3D Profilometer

Helium Leak Detector

Three-Chamber Thermal Shock Chamber with Humidity Capability

Large-Scale Salt Spray Test Chamber

Function

Measurements are more comprehensive and refined.

Detecting leaks by assessing helium leak rates

Conduct multi-dimensional accelerated ageing tests on battery packs and their performance in customer appliance conditions to comprehensively validate the reliability design of the product.

Quality Audit

Building on the existing tiered audit mechanism, during the reporting period the Company established a dedicated Group inspection team to conduct targeted investigations into on-site quality issues, monitoring the progress of corrective actions throughout the entire process until resolution. At the same time, leveraging the cross-manufacturing-unit information-sharing channels established through the Group’s dedicated audits, the Company has promoted the efficien implementation of quality control requirements and best practices across all business units and production workshops

Quality Culture Development

The Company has established a collaborative mechanism led by the group and featuring distinctive practices across its business units, with the aim of deeply embedding the “quality first” philosophy into organizational operations and employee behavior, thereby fostering a quality culture characterized by full staff participation and continuous improvement.

Group level

Institutionalized quality meetings: Monthly company-wide quality meetings are held, featuring case studies and the promotion of quality standards. These are complemented by positive incentive schemes to recognize outstanding teams and individuals, thereby fostering a positive atmosphere where everyone strives for excellence and works together to improve quality.

Quality-themed initiatives: Diverse thematic activities were conducted throughout the year, including management seminars on “Quality and Efficiency Dual Wins”, promotion of the Process VOP quality methodology, and interpretations of product certification regulations. Among these, the “September Quality Month” served as a key annual event, featuring 45 themed activities.

Business unit level

Specialized skills training: Organized quality training covering process quality, QC skills, and on-site operational standards.

Risk identification and

improvement: Innovative initiatives such as the “Whole-Staff Intelligence Registration Form” encourage frontline staff to proactively submit product risk points weekly, which are then assessed and addressed by specialist departments

Quality Initiatives: Organizing quality knowledge competitions, delivering specialized Quality Month training alongside case studies, and conducting on-site audits to continuously reinforce staff awareness of quality red lines and process execution capabilities.

Advancing Lean Improvement

The Company commenced its exploration of lean management in 2024 and fully established and rolled out the HBS (Highpower Business System) lean operations framework by 2025. Through a four-pronged approach of “establishing systems, driving projects, developing talent, and fostering an enabling environment”, the Company has cultivated an internal momentum for continuous improvement, effectively driving dual enhancements in product quality and operational efficiency.

Key Tasks for Lean Improvement Management in 2025

Systematic Development

A three-tier organizational structure comprising the HBS Committee, HBS Office, and Lean Execution Teams across business units has been preliminarily established. The HBS Operational Management Mechanism and HBS Grade Certification Management Measures have been issued, clarifying the operational management framework for lean improvement weeks while systematizing and consolidating relevant management process methodologies.

Project-Driven

Comprehensive implementation of lean improvement initiatives through projectbased management was achieved, with 228 HBS lean improvement projects undertaken throughout the year. These projects spanned multiple operational areas including production, quality control and logistics, attracting a total of 1,656 active participants.

Talent Development

Throughout the year, 73 internal Lean Green Belt personnel were trained and certified, establishing a core team capable of spearheading projects and employing specialized tools to resolve quality and efficiency issues.

Cultural Atmosphere

Throughout the year, a total of 53 Lean Improvement Awards were presented to outstanding projects and teams, encouraging cross-departmental learning and the promotion of best practices.

Green Belt Certification

HBS Half-Yearly Summary Conference

Smart Manufacturing and Digital Transformation

In 2025, the Company focused on quality assurance and enhancement as its core objective, empowering the implementation of its sustainability strategy through digitalization. By replicating and promoting sustainable improvement production systems across major production bases, and supporting this with a tiered talent empowerment program, the Company guaranteed the efficient application and value transformation of digital systems, driving coordinated progress in operational efficiency, product quality, and development resilience.

System Development and Promotion

Core system deployment

With the Manufacturing Execution System (MES) and Quality Management System (QMS) at the core, the Company is continuously optimizing their functionality whilst simultaneously implementing specialized systems such as workshop environmental monitoring, Total Productive Maintenance (TPM), Warehouse Management System (WMS) and energy management. The Company is e also prioritizing the introduction of Statistical Process Control (SPC) to strengthen the foundation of end-toend quality control through digital means.

End-to-end monitoring

Leveraging the core system, the Company implements systematic and visualized end-to-end monitoring of key metrics such as production energy consumption, workshop conditions, material utilization rates, equipment operating status and product quality, thereby ensuring stable production processes and reliable product quality.

Data-driven quality improvement

By leveraging in-depth data analysis, the Company achieves dynamic optimization and precise control of production processes, using data to underpin continuous quality improvement and enhancement.

Tiered Talent Empowerment

Comprehensive Training

Tailored for diverse roles including managers, key users and frontline operators, delivering holistic operationa and management training centered on core systems such as MES.

Rigorous assessment mechanism

Ensuring the effectiveness of empowerment through evaluations, with a cumulative total of 634 training sessions completed and an assessment pass rate of 99.34%.

Defect Control and Recall Management

The Company continues to refine its systems for the control of non-conforming products and product recalls. During the reporting period, it updated and optimized policies such as the Regulations on the Control of Non-conforming Products and the Product Recall Control Procedure, further detailing the procedures for handling suspected nonconforming products. The Company conducts root cause analysis on defective products, formulates preventive measures and validates corrective actions, thereby promoting closed-loop management and continuous improvement.

Non-Conforming Product Control

Establish a comprehensive non-conforming product control system covering the entire process from raw materials through manufacturing to finished goods. Implement strict labelling, immediate segregation, and a Material Review Board (MRB) assessment mechanism to manage non-conforming items through return, rework, repair, or disposal.

Should any serious defects be identified internally or by the customer after product delivery or use, Quality Control Department engineers shall assess the adverse impact within one working day. If it is confirmed that the defect is attributable to the Company, an evaluation and confirmation team comprising relevant departments shall be convened to review the non-conforming product. The review outcome shall be negotiated between the Sales Department and the customer, with subseguent handling conducted in accordance with contractual quality agreements and other stipulations. This may include replacement, return, recall, or compensation.

Indicators and Targets

The Company has established 2025 quantitative quality objectives around five core dimensions: customer complain frequency, CTS (critical to safety), CTR (critical to reliability), major incident occurrences, and product pass rate. Through a monthly monitoring mechanism, progress towards these targets is continuously tracked. As of the end o the reporting period, all annual quality objectives have been achieved

Customer Relationship Management

Governance

The Company adheres to the service philosophy of “products satisfy users and services satisfy customers”. The Company has established a Service Control Procedure to standardize customer service processes. Leveraging the collaborative mechanism of its “Iron Triangle” (marketing, R&D, and supply chain), the Company achieves end-to-end product management, responds swiftly to customer needs, continuously creates value, and optimizes the customer experience.

Strategy

Impact, Risk and Opportunity Management

By establishing a closed-loop service system that spans from identifying customer issues to resolving them, the Company systematically identifies, evaluates and continuously monitors potential risks and opportunities throughout the entire customer service journey. This approach transforms customer interactions into a pivotal driver for the ongoing refinement of products and services.

Customer Complaints Management

The Company actively listens to customer feedback, providing convenient and diverse complaint channels including instant messaging tools, email, video conferencing systems, telephone communication, or face-to-face discussions A categorized management system for customer complaints has been established, clearly dividing them into three types: commercial, quality, and order delivery. Each category is handled by the corresponding responsible department to ensure closed-loop resolution. Complaints are prioritized based on urgency and impact severity with corresponding handling procedures and response timelines established for each tier to continuously refine the complaint management system. Furthermore, the Company has formed an FA analysis team composed of industry experts from various modules, focusing on the study of failure modes and mechanisms of li-ion batteries. This team conducts in-depth analysis and improvement of defective products involved in customer complaints and provides feedback to customers after validating the improvement effects. This creates a closed-loop mechanism for complain handling and feedback, ensuring that issues are resolved efficiently.

Customer Satisfaction Survey

The Company implements a regularized annual customer satisfaction survey mechanism, covering multiple dimensions including quality, R&D, service, and delivery. The survey targets core customers (those with active annua transactions) and assessed potential key clients, with execution carried out by respective business units. For the 2025 fiscal year, the Group’s comprehensive customer satisfaction score reached 94 points. In response to client feedback the Company conducts in-depth follow-up visits and communications to clarify client requirements and implemen improvement measures, ensuring continuous enhancement of satisfaction levels. Owing to the outstanding customer service performance, the Company received honors and commendations from multiple core clients during the reporting period.

Customer Service Training

The Company has continued to conduct customer service-related training programs. During the reporting period, i delivered 13 training sessions totalling 25 hours, focusing on regulatory compliance, technical capabilities, operationg practices, professiongal conduct and industry developments to provide specialized empowerment for relevant tegms

Specialized Training on the EU’s New Battery and Hazardous Substances Management Regulations

The Company organized training on the EU's new battery regulations and other hazardous substance management legislation in early 2025. This initiative aimed to ensure that sales, customer service and quality teams gained a precise understanding of the core regulatory requirements, transforming complex compliance provisions into professional communication skills for the teams.

Protect customer privacy

The Company is committed to safeguarding clients’ fundamental rights and interests, rigorously protecting client privacy and information security. Having obtained ISO 27001 management system certification, the Company requires that all marketing centers and client project teams sign confidentiality agreements covering client information at a 100% rate, thereby strengthening confidentiality controls in personnel management. During the 2025 financial year, the Company received no complaints regarding breaches of customer privacy

Responsible Marketing

The Company has established the Information Release Management Guidelines, implementing a multi-tiered review mechanism and standardized operational guidelines to ensure all external communications are lawful and compliant. Concurrently, the Company conducts unscheduled responsible marketing training to enhance team awareness and practice regarding green marketing, privacy protection, and anti-unfair competition, thereby continuously elevating brand credibility. Furthermore, the Company actively participates in industry exchanges and shares best practices, collaborating with ecosystem partners to foster the sector’s positive development

Indicators and Targets

The Company has set an objective to achieve an annual year-on-year increase in overall customer satisfaction, with the 2025 target having been met.

Sustainable Supply Chain

Governance

The Company is committed to the coordinated development of the entire value chain and has established a specialized, integrated supply chain management organization, overseen by senior management, to ensure efficient control across the entire chain—from resource sourcing and production coordination to product delivery The Company deeply integrates the principles of sustainable development into the coordinated management of the value chain. Centered on core requirements such as quality assurance, green and low-carbon practices, socia responsibility and compliant operations, it has established a long-term cooperative mechanism with upstream and downstream partners based on standardized collaboration, joint capacity building, shared risk prevention and mutual promotion of development. The Company has formulated internal management systems such as the Supplie Management Regulations and the Fundamental Guidelines for Cooperation with Suppliers, which comprehensively cover key aspects including the classification of materials and suppliers, qualification, audit and evaluation performance management, capability enhancement and exit mechanisms. It is continuously driving the development of supply chain management towards standardization, process optimization, transparency and sustainability

Strategy

Impact, Risk and Opportunity Management

The Company has deeply embedded supply chain risk identification and assessment into the supplier lifecycle management processes. Through systematic due diligence, it dynamically monitors supply chain risk dynamics leveraging sustainable management standards to thoroughly explore opportunities for green supply chain development.

Supplier Management

The Company has established a supplier lifecycle management mechanism that covers “admission-assessment-exit” and has deeply integrated sustainability requirements into each stage.

Supplier Access

During the supplier admission stage, the Company established the Supplier Admission Certification Management Process, creating a systematic evaluation mechanism and multi-dimensional assessment criteria for new suppliers. Within the reporting period, the Company further refined the new supplier admission process. Building upon the original review framework, the Company added key mineral due diligence requirements and introduced an independent Supplie Sustainability Audit Form to conduct comprehensive assessments across multiple dimensions, including social responsibility management systems, labor rights, business ethics, business continuity, occupational health and safety, and environmenta management. 100% of newly admitted production suppliers in 2025 have been included in this sustainability audit system Furthermore, the Company explicitly requires all suppliers to sign the Conflict-Free Minerals Commitment / Critical Minerals Due Diligence Commitment Letter^¹ and the Supplier Social Responsibility Commitment Letter to strengthen risk prevention at the source.

Sustainable Development Review Dimensions of Supplier Entry of Highpower Technology

• ISO 14001 System

• Environmental Management Compliance

• Hazardous Substance Restriction Management System

• Anti-Corruption and Bribery and Money Laundering

• Business Ethics Policy

• Standards of Commercial Integrity

• Occupational Health and Safety

• SA 8000 and ISO 45001 Systems • Reasonable Remuneration and Working Hours • Business

• Prohibit Child Labor, Forced Labor, Anti-Discrimination • Intellectual Property Protection

• Compliance Management of Conflict Minerals

Supplier Assessment and Exit

For suppliers with whom collaboration has already commenced, the Company has established the Supplie Performance Management Process and continuously advances the supplier assessment mechanisms. Monthly performance summaries and quarterly evaluations are implemented for all production material suppliers comprehensively assessing their product and service performance across the QDCTS dimensions (Quality, Delivery Cost, Technology, Service). Based on scoring outcomes, suppliers are categorized into four tiers—A, B, C, and D—with differentiated management applied according to their performance. In 2025, the company completed audits for 64 suppliers as planned. For suppliers that remained non-compliant after implementing improvements, the company will evaluate and replace them in accordance with the performance clauses outlined in the Supplier Management Regulations. This process facilitates the dynamic optimization of the supplier pool, ensuring the survival of the fittest and guarantees the efficient operation and long-term competitiveness of the supply chain.

¹From 2025, the document to be signed by new suppliers has been standardized as the Critical Minerals Due Diligence Commitment Lette

ESG Dynamic Assessment

The Company actively conducts ESG due diligence within the supply chain based on the Supplier Sustainability Audit Form. A dedicated project team has been established, with third-party institutions engaged to provide professional guidance, advancing related work according to schedule. The due diligence scope covers upstream suppliers of key minerals, including lithium battery core materials, nickel-metal hydride core materials, electronic components, and structural material components. Regarding audit management, the Company implements differentiated on-site audit frequencies based on suppliers’ annual performance ratings: A and B-rated suppliers undergo audits at least biennially, while C-rated suppliers require annual audits. Automotive suppliers without IATF 16949 certification must also undergo annual audits. The assessment process encompasses supplier self-evaluation, multi-departmental joint on-site audits, results publication, rectification plan formulation, and closed-loop verification, establishing a complete management cycle from evaluation to improvement.

Ensuring the stability of the supply chain

At the management system level, during the reporting period, the Company engaged external authoritative bodies to conduct ISO 22301 Business Continuity Management training and completed the formulation and submission of the Business Continuity Plan (BCP). At the operational level, through dynamic optimization of safety stock levels, proactive advancement of secondary supplier integration, and diversification strategies such as domestic substitution of materials, the Company effectively mitigated single-source supply risks

Case

Enhancing Operational Resilience – Business Continuity Training Successfully Completed

During the reporting period, the Company organized specialized training for internal auditors of the ISO 22301 business continuity management system. Over 60 employees from key positions completed a 16- hour training program and passed the assessment (with a 100% pass rate), effectively equipping the team to identify vulnerabilities in the supply chain and enhance their ability to respond rapidly to emergencies.

Supplier Empowerment

The Company continues to strengthen ESG capability development within the supply chain. During the reporting period, it engaged third-party professional institutions to organize specialized training for key suppliers on carbon management and critical mineral due diligence, cumulatively covering 83 suppliers and 132 participants. Concurrently the Company actively encouraged suppliers to participate in customer-initiated Sustainability Stepping Stone (SSP) programs, empowering them to enhance their social responsibility management capabilities. These outcomes received high recognition from customers, resulting in the Company being awarded the “Supplier Sustainability Performance Gold Award”. Furthermore, through a series of training sessions, the Company systematically promoted its supplier sustainability audit mechanism, providing specialized guidance on carbon inventory, due diligence, and data reporting procedures. In 2025, the total duration of ESG-related training delivered to suppliers amounted to approximately 493.5 hours

Green Supply Chain Development

In the realm of circular economy, the Company collaborates with suppliers on a “closed-loop management o recycled materials” initiative. Production waste is handed over to specialized suppliers for recovery and processing, subsequently being transformed into cathode materials at dedicated facilities before being reused in the Company’s own production processes. This approach effectively minimizes resource wastage and environmental pollution.

In the area of carbon emissions management, the Company conducted data surveys on 141 suppliers during the reporting period, gathering information on greenhouse gas emissions, green electricity usage, reduction measures, and product carbon footprints. Material-level carbon data traceability was implemented for key client projects.

By the end of the reporting period, 9 of the Company’s key suppliers of primary materials had obtained ISO 14067 product carbon footprint certification, while 4 suppliers secured UL 2809 recycled material certification, thereby continuously enhancing the green compliance standards of the supply chain.

Responsible Mineral Management

The Company strictly adheres to the International Bill of Human Riahts, the United Nations Guiding Principles on Business and Human Rights, the European Union Regulation (EU) 2023/1542 on Batteries and Waste Batteries, the China Mineral Supply Chain Due Diligence Management Guidelines, the OECD Due Diligence Guidance for Responsible Business Conduct, OECD Guidelines for Responsible Supply Chain Due Diligence Management of Minerals from Conflict Affected and High-Risk Areas, and the Dodd-Frank Wall Street Reform and Consumer Protection Law. Internally, the Company has formulated and implemented the Due Diligence Policy for Responsible Supply Chains of Critical Minerals and the Regulations on the Management of Appeals and Remedies for Critical Minerals, committing to identifying and managing conflict minerals-related risks within supply chain operations.

The Company has established a Critical Minerals Due Diligence Working Group, led by the Sustainable Development Management Committee and involving functional departments across all modules. This group is responsible for the responsible management of the Company’s mineral supply chain. The Company provides training on critical minerals due diligence to authorized management and relevant personnel, ensuring they possess the requisite competencies for their roles.

To systematically manage the supply chain risks associated with key minerals, the Company has established a fullprocess management system covering admission review, traceability investigation, and continuous monitoring. In the admission stage, all new suppliers involving conflict minerals are required to sign the Critical Minerals Due Diligence Commitment Letter and complete a key minerals risk questionnaire, proactively identifying and assessing risks to generate a key mineral supply chain risk assessment report. At the material level, the Company utilizes the interna GPCM system (Green Product Compliance Management system) to conduct annual supply chain mapping surveys involving 96 suppliers associated with key minerals. The Company requires these suppliers to conduct tier-by-tier traceability back to the mineral source, with joint review by the Procurement and Quality Systems departments to ensure the information is authentic and traceable. The survey results indicate that the current upstream supply chain risks are overall controllable, meeting the Company’s management requirements for key minerals. In the assessment stage, the Company incorporates key mineral management into the scope of annual supplier review, conducting due diligence on relevant suppliers to ensure the legality of raw material sources and prevent the use of conflict minerals.

Equal Treatment for SMEs

The Company strictly adheres to the State Council’s Regulations on Safeguarding Payments to Small and Medium sized Enterprises and relevant laws and regulations. It has established a comprehensive control mechanism based on the Accounts Payable Management System, ensuring that all stages from order confirmation to settlement and payment are conducted in a standardized, transparent and efficient manner. This effectively supports the operationa security and healthy development of SMEs within the supply chain.

Indicators and Targets

The Company establishes annual audit plans for suppliers, covering annual audits, sustainability audits, and audits for suppliers o conflict minerals. The supplier audit completion rate reached 100% in 2025.

Highpower Technology pursues its corporate vision of "Provide world-class clean energy solutions to power the future", deeply integrating sustainable development principles into its operational practices. The Company actively explores innovative pathways to address climate change, continuously optimizes its environmental management systems, and steadily advances the green transformation and upgrading of its business operations.

The United Nations Sustainable Development Goals (sDGs Corresponding to this Chapter Include:

CLEAN MATER 12 RESPONSIBLE LINATE

Key Issues

Environmental Management Emissions and Waste Management Addressing Climate Change Energy Management Water Resource Management Ecosystem and Biodiversity Conservation

Environmental Management and Ecological Conservation

The Company strictly adheres to the Environmental Protection Law of the People's Republic of China and other relevant laws and regulations in its operational locations. It has established a series of management policies and standardized procedural documents, including the Environmental Management Regulations, the Environmental Factor Identification and Assessment Procedure, the Environmental Monitoring and Measurement Control Procedure, and the Environmental Policy, Objectives, Indicators and Plan Management Procedure. In 2025, the Company updated its Environmental Management Regulations and Environmental Monitoring and Measurement Control Procedures. This refinement further detailed the environmental management responsibilities of each functional department, clarified reward and penalty mechanisms, and implemented special monitoring and management for operational activities potentially with significant environmental impacts.

The Company did not incur any penalties for violating environmental protection regulations throughout the year nor did it receive any significant administrative penalties from relevant departments such as ecological and environmental authorities due to environmental incidents. Consequently, no related penalty amounts were incurred.

Environmental Management Organizational Structure

The Company has established a robust environmental governance framework, clearly delineating the boundaries of authority and responsibility across all levels from decision-making to execution. This ensures scientific decisionmaking, efficient implementation, and timely execution of all environment-related work within the Company.

Environmental Management Committee Structure and Responsibilities

Environmental Management Committee Chair

Responsible for environmental management system and strategic decision-making, policy formulation, risk management, strategic planning and overarching supervision as the highest decision-making level of environmental management.

Environmental Management Committee Vice Chair

Responsible for coordinating various departments to perform environmental management tasks, ensuring effective implementation of strategies and achievement of goals, and regularly reporting the Company's environmental management performance to the Chair of the Environmental Management Committee.

Environmental Management Committee

A team comprising representatives from each department is responsible for identifying, evaluating and updating environmental factors within their respective areas of responsibility. They organize environmental manggement training for departmental personnel ensure the proper functioning of environmental control facilities within their departments, and oversee routine environmental management tasks such as waste management compliance. The Company has established a dedicated environmental protection project team and employed environmental protection engineers to coordinate the execution of daily environmental management activities across all departments. This facilitates the environmentally compliant operation of the industrial park and ensures the achievement of all key environmental performance indicators.

Establishment of an Environmental Management System

The Company has undertaken the development and enhancement of its environmental management system based on the ISO 14001 standard. Presently, its subsidiaries involved in manufacturing operations—Guangdong Highpower, Huizhou Highpower, and Vietnam Exquisite Power—have all attained ISO 14001 environmental management system certification, achieving comprehensive coverage of environmental management system certification across all primary production bases

The Company's subsidiaries Guangdong Highpower, Huizhou Highpower and Vietnam Exquisite Power continue to conduct internal environmental audits, covering compliance with laws and regulations, the effectiveness of environmental management policy implementation, and the efficacy of risk management measures.

In 2025, Guangdong Highpower, Huizhou Highpower and Vietnam Exquisite Power fully completed internal audits of their environmental management systems as well as third-party external audits. During the reporting period, the systems operated with 100% effectiveness. Minor non-conformities identified during audits were fully rectified by the responsible units, achieving closed-loop management.

Environmental Monitoring and Emergency Response

All production bases of the Company have established standardized environmental monitoring and waste disposa mechanisms. In 2025, each production site formulated and implemented its annual environmental monitoring plan engaging third-party institutions to conduct monitoring, thereby continuously reducing the environmental impact.

The Company has established a comprehensive environmental emergency response framework, conducting regular identification and assessment of environmental risk sources. Environmental contingency plans are formulated for identified risks and are filed with the relevant ecological and environmental bureau. Our environmental contingency plans remain valid at present. Furthermore, the Company has developed the Disaster Prevention and Recovery Operations Management Procedure and established an Environmental Emergency Command Center to ensure the proper and efficient handling of environmental emergencies

Environmental Identify facilities, activities, or processes that may impact the environment, and specify Risk Identification particular risk types such as pollutant emissions, chemical spills, fires, and explosions, thereby laying the groundwork for subsequent prevention and control measures.

Environmental Analyze the likelihood and potential impacts of identified risks, categorizing them by Risk Assessment severity and probability to determine priority control measures.

Emergency Plan Development

Establish clear emergency response procedures encompassing alerting, evacuation, pollution control, and rescue operations. Ensure adequate reserves and availability of emergency resources, conduct regular training and drills, establish internal and external communication and reporting mechanisms, and perform post-incident evaluations for continuous plan refinement.

Continuous Monitoring and Updating

Ensure the effectiveness and applicability of risk assessments and emergency plans through regular review and updating. Concurrently, establish an environmental monitoring system to conduct real-time monitoring of potential risk sources, enabling the timely detection and resolution of environmental issues.

Hazardous Chemicals Emergency Drill

The Company continues to advance its clean production initiatives by monitoring and inspecting the entire production and operational process to identify potential optimization points characterized by high energy consumption, high material usage, and significant pollution. Based on this, targeted clean production enhancement plans are formulated and implemented, while internal and external clean production audits are systematically advanced. Notably, Huizhou Highpower successfully passed its clean production audit in June 2021 following a rigorous process encompassing self-assessment, third-party evaluation, recommendation by provincial industria and information technology authorities, and expert review. Consequently, it has been designated as a municipal-leve clean production enterprise

Environmental Protection Culture

The Company actively fosters an environmental culture system rooted in business operations, regularly organizing specialized environmental training to deepen employees' environmental awareness and equip them with professiona skills

Guangdong Highpower

Conducted chemical spill training for production department supervisors and warehouse managers, achieving a 100% participation rate.

Huizhou Highpower

Conducted training programs for departmental managers and environmental management system internal auditors on environmental protection knowledge pertaining to wastewater, waste gas and solid waste management, achieving a 100% pass rate in training assessments.

Vietnam Exquisite Power

Conducted ISO 14001 training at overseas base, enhanced EHS management mechanisms, and achieved ISO 14001 certification.

Environmental Management Objectives

The Company adopts an environmental management policy centered on “compliance with regulations, pollution prevention, energy conservation and waste reduction, and continuous improvement”. Each year, it establishes specific quantifiable environmental management objectives and ensures their implementation through dynamic tracking and regular reviews.

Production Bases

During the reporting period:

Time investd in environmental governance 17,673 hours

Investment in environmental governance RMB 12.73 million

Ecosystem and Biodiversity Conservation

The Company strictly adheres to local laws, regulations, and policy requirements, including the Opinions on Further Strengthening Biodiversity Conservation, the Soil Pollution Prevention and Control Law of the People's Republic of China, and the Groundwater Management Regulations. Concurrently, it has formulated internal Land Use and Biodiversity Management Regulations to systematically identify biodiversity risk factors and investigate ecologica hazards in surrounding areas.

The Company conducts environmental assessments of ecologically sensitive elements such as ancient and notable trees, rare and endangered flora and fauna in the vicinity of each production base. Furthermore, none of its operational bases are situated within, adjacent to, or in areas of high biodiversity concentration within nature reserves. This ensures that its production operations, products, and services do not exert any significant adverse impact upon regional biodiversity.

Emissions and Waste Management

Waste Gas Treatment

The Company's primary exhaust emissions comprise dust, and organic waste gases generated during production processes. The Company strictly adheres to the laws and regulations of its operational locations, including the Law o the People's Republic of China on the Prevention and Control of Air Pollution and has established internal procedura documents such as the Waste Gas Emission Management Procedure, Wastewater Treatment Procedure, and Noise Emission Management Procedure. During the reporting period, the Company updated its Waste Gas Emission Management Procedure, Wastewater Treatment Procedure, and Noise Emission Management Procedure, furthe clarifying the responsibilities and authorities of each functional department regarding waste gas management and facility operation and maintenance. Concurrently, it formulated environmental monitoring plans in accordance with relevant regulatory requirements and commissioned third-party institutions to conduct monitoring as mandated. In 2025, all waste gas monitoring results met the relevant requirements, achieving 100% compliant emissions.

Guangdong Highpower Waste Gas Treatment Project

In 2025, Guangdong Highpower initiated an upgrade project for its waste gas treatment equipment to address organic emissions generated during production processes, including electrolyte volatilization and vacuum pump oil dispersion, The core of the proiect employs an “intelligent hiah-efficiency composite biofilter bed combined with an alkali-washing spray tower” process. This is complemented by a cloud platform for real-time monitoring of parameters such as the pH value of the filter bed spray solution and the temperature of the filter bed packing layer, enabling early warning and intelligent control.

Wastewater Treatment

The Company's wastewater primarily originates from cleaning effluents generated during the production of nickelmetal hydride and li-ion batteries, such as water used to wash containers and tools contaminated with slurry, scrub machinery, and clean cylindrical bare cells; as well as wastewater from the waste gas treatment system's scrubber towers. The Company strictly adheres to the relevant laws and regulations of its operational location, including the Law of the People's Republic of China on the Prevention and Control of Water Pollution. It has formulated and revised the Wastewater Treatment Procedure, clearly defining the division of responsibilities among functional departments, as well as the specific operational procedures and compliance requirements for wastewater treatment. Wastewater from domestic production facilities undergoes treatment at the Company's on-site wastewater treatment plant through physical-chemical processes, biological treatment, MBR membrane filtration, RO membrane filtration, and MVR evaporation systems. Following this treatment, the effluent meets regulatory standards for reuse or discharge Discharged wastewater complies with water quality requirements set by government environmental authorities posing no adverse effects on aquatic ecosystems or human health. In 2025, the Company achieved 100% complian discharge of industrial wastewater.

Treated at the self-built wastewater treatment station

Internal testing and external testing

Preliminary filtration through internal oil separators and three-stage septic tanks

Reused or discharged afte passing the testing

Management Process for Industrial Wastewater (Domestic Sites)

Discharged into the municipal pipe network

Treated at the wastewater treatment plant

Guangdong Highpower Wastewater Treatment Plant Technical Upgrade Project

In 2025, Guangdong Highpower implemented a technical upgrade at its wastewater treatment plant adding a new lithium battery wastewater pretreatment system. Prior to the upgrade, the existing equipment could only process 20-30 cubic metres of lithium battery wastewater per shift, relying solely on primary sedimentation treatment. Following the upgrade, the treatment capacity per shift increased to 40-50 cubic metres. The treatment process was enhanced to a three-stage sedimentation tank combined with electrolytic denitrification, significantly boosting wastewater treatment capability and effectively improving the treatment efficiency and operational stability of the wastewater treatment plant

During the reporting period:

Total industrial wastewater discharge amounted to 915 tonnes, with a discharge intensity of 0.16 t/RMB million.

Waste Management

The Company strictly adheres to the laws and regulations of its operating locations, including the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste. It has established internal procedural documents such as the Solid Waste Management Procedure. During the reporting period, the Company revised and updated the Solid Waste Management Procedure, further refining the classification of hazardous waste across subsidiaries and clarifying the management responsibilities of each department. This ensures the Company's systems are fully aligned with national solid waste laws and regulations.

The Company's non-hazardous waste primarily comprises domestic refuse and general industrial solid waste, whils hazardous waste mainly originates from production processes, including spent electrolyte solutions, waste oils discarded fluorescent tubes, spent activated carbon, used rags, empty containers and spent cutting fluids. Through a combined approach of source control, segregated collection, resource recovery and compliant disposal, the Company has established dedicated waste management objectives to systematically advance waste reduction and emission minimization at source

In November 2025, Huizhou Highpower and Guangdong Highpower conducted on-site audits of hazardous waste treatment providers to verify compliance with disposal procedures.

Non-hazardous Waste

Domestic Waste

• After being sorted and collected, it is uniformly processed by the environmental sanitation department.

General Industrial Solid Waste

• Classification and collection: Sorting waste according to its nature and composition

Temporary storage and pre-treatment: Storing sorted waste in designated areas and performing pre-treatment operations based on waste type and subsequent processing requirements

• Recycling and disposal: Handled by solid waste recyclers, with regular monitoring of their processing methods.

Hazardous Waste

• Classification: Categorize hazardous waste according to type

Collection and Storage: Utilize dedicated containers and equipment for hazardous waste collection; temporarily store collected hazardous waste in specialized hazardous waste holding facilities

Record-keeping and ledger management: Maintain detailed records of hazardous waste generation, collection, temporary storage, and other relevant information

• Hazardous waste disposal contractors: Engage qualified hazardous waste disposal contractors with appropriate professional credentials.

• Qualification review: Conduct periodic qualification reviews of hazardous waste disposal contractors.

During the reporting period:

General industrial solid waste

Total generation of general industrial solid waste: 2,256.57 tonnes, general industrial solid waste treatment intensity: 0.38t/RMB million

General industrial solid waste reuse volume: 1,697.27 tonnes

The unit product generation intensity of general industrial solid waste at domestic production bases decreased by 13.91% year-on-year.

Hazardous Waste

Total hazardous waste generated: 328.31 tonnes；Hazardous waste treatment intensity: 0.06t/RMB million

Hazardous waste reuse volume: 8.20 tonnes

Energy and Resource Management

Energy Management

The Company has established internal procedural documents including the Energy Procurement Control Procedure, Energy Management Measures Control Procedure, and Energy Performance Evaluation Control Procedure to ensure that energy management activities are conducted in a standardized and orderly manner, thereby effectively enhancing energy utilization efficiency

During the reporting period, the Company formally established an Energy Management Team, implementing a tiered management structure: senior management spearheaded the formulation of strategic energy management objectives, overseeing energy conservation projects and providing resource support. The Head of the Equipment Platform Department assumed the role of Executive Team Leader, with a dedicated Energy Engineer appointed as Executive Secretary. Members were assigned from all departments and business units to ensure the implementation of energy management responsibilities at every level. In 2025, the Company formally commenced the implementation of the ISO 50001 energy management system, conducting training programs to further enhance energy management capabilities. As of the date of this report, both Guangdong Highpower and Huizhou Highpower have obtained ISO 50001 energy management system certification.

Energy Technology Upgrading

The Company continues to advance energy-saving technical upgrades, introducing high-efficiency energysaving technologies to optimize its energy consumption structure and enhance energy efficiency levels. In 2025, the Company completed a total of three major energy-saving renovation projects, achieving an annual electricity saving equivalent to approximately 9.79 million kWh

Case Guangdong Highpower Water Intelligence Control Project

In 2025, Guangdong Highpower maintained continuous operation of the water quality managemen systems for Buildings 6 and 8. This project achieved real-time water quality monitoring, intelligen precision chemical dosing, and wastewater discharge through the deployment of integrated smar sensors and dosing equipment, combined with an IoT cloud platform and AI-optimized algorithms Following the system's implementation, water quality parameters met national standards. During the acceptance period, energy savings were calculated at 11.7%. From May to December 2025, energy savings calculated at this rate amounted to 410,000 kWh

Case

Guangdong Highpower Air Conditioning System Optimization and Energy Saving Project

In 2025, Guangdong Highpower undertook in-depth commissioning and technical upgrades of its heating and cooling source systems and terminal units. By optimizing chiller plant operating modes and introducing the UE artificial intelligence ultra-high-efficiency digital management platform, precise control was achieved. Commissioned in April 2025, the project achieved cumulative energy savings of 9,375,385 kWh between April and December 2025. This yielded energy-saving benefits of RMB 6,274,229 and an annual reduction of 1,152.23tce.

In 2025, Huizhou Highpower Phase I Air Compressor Station phased out outdated equipment, replaced it with Class 1 energy-efficient air compressors, and establish an intelligent air compressor control system. This reduced the air-toelectricity ratio from 0.1391 kWh/m³ to 0.1020 kWh/m³, achieving an energysaving rate of 26.67%.

Supporting the Development of Clean Energy

The Company actively promotes the application of clean energy, vigorously developing green projects such as photovoltaics and energy storage to support the transformation of the energy structure. In 2025, the Company added 0.88 MW of distributed photovoltaic capacity, bringing the cumulative installed capacity to 4.51 MW. The electricity generation for 2025 reached 4,299,945 kWh.

The Huizhou Highpower 0.88 MWp Photovoltaic Project was Successfully Completed and Commissioned in November 2025, Contributing to the Optimization of the Energy Structure

Energy Efficiency Audit

The Company's two major production bases in Huizhou conduct weekly routine energy-saving inspections, examining the operational status of key systems including production and auxiliary equipment, lighting systems, air-conditioning units, and gas systems (compressed air, nitrogen, vacuum). Throughout the year, cumulative inspections across all energy-consuming departments conducted a total of 473 instances. Through systematic investigation and oversight energy-wasting risks are effectively identified, and the implementation of energy-saving measures is promoted

Case

Warehouse Energy Efficiency Audit Initiative

In July 2025, the Company conducted an energy efficiency review of its warehouse facilities, identifying issues such as lights left on in unmanned areas and air conditioning set to excessively low temperatures. To address these energy wastages, the Company implemented improvements including conducting energy management training to enhance employees' awareness of energy conservation, posting standards for air conditioning temperature and lighting control, optimizing the operation mode of the cooling system, and carrying out regular inspections. Following the completion of rectification measures, the monthly electricity consumption at Warehouses 4 and 7 has decreased significantly compared to the same period in 2024, with cumulative electricity savings over the six-month period amounting to approximately 916,900 kWh

In 2025, all mature production and operational bases within the Company advanced energy-saving initiatives with comprehensive energy consumption per unit of product as the key control target. Notably, Huizhou Highpowe achieved a 5.7% reduction in comprehensive energy consumption per unit of product compared to the baseline, while Guangdong Highpower recorded a 36.86% decrease. Both sites exceeded their annual energy-saving targets, fully demonstrating the effectiveness of their conservation efforts.

During the reporting period:

Total energy consumption amounted to 39,600 tce

Green power certificates procured amounted to

46.70 million kWh

30,647,100 kWh

of green electricity was procured

Photovoltaic power generation reached 4,299.95 MWh

Total renewable energy usage reached

81,647,100 kWh representing a renewable energy share of

25.34%

Addressing Climate Change

Governance

The Company has established internal systems and procedural documents, including the Greenhouse Gas Inventory Procedure and the Emergency Preparedness and Response Management System, integrating climate changerelated content into its overall ESG framework to ensure climate change issues are incorporated into the Company's strategic planning process.

Sustainable Development Decision Making Committee

As the highest decision-making body at the Board of Directors level, the Sustainable Development Decision Making Committee is responsible for

• Guiding and formulating the Company's climate-related vision, goals, strategies, and structure

Water Resource Management

The water resources utilized by the Company during production and operational processes are sourced exclusively from the municipal water supply system. The principal facilities are not situated within high-risk water supply zones. The Company has established internal systems and procedural documentation, including the Energy Operations Management Procedures, to continuously optimize water resource management and enhance water usage efficiency.

• Identifying major climate risks and opportunities

The Company maintains water usage records, prioritizes the selection and procurement of water-efficient equipment and appliances, and progressively phases out high-consumption, outdated water-using devices and products Approved water-metering devices are installed at key water-consuming processes and critical water-using equipment. The Company conducts regular inspections and maintenance of facilities and equipment, ensuring water pumps and valves are promptly shut off during production halts to prevent leakage. Furthermore, it promotes water conservation knowledge, policies, and their significance through noticeboards and posters, implementing multiple measures to ensure the efficient and economical use of water resources.

• Regularly reviewing the implementation and achievement of climaterelated goals

In 2025, the Company's water resource management was compliant and efficient, with no major non-compliance incidents. The primary production bases, Guangdong Highpower and Huizhou Highpower, established unit water consumption control targets using 2024 as the base year and successfully achieved these objectives.

Total water withdrawal (fresh water):

During the reporting period:

Total water reuse

958,861.23 tonnes

15,173 tonnes

Sustainable Development Management Committee

Composed of the Company's core management team, and responsible for

Sustainable Development Execution Group

• Offering business insights into the Company's climate change strategy, including key fields like climate change risk and opportunity management, as well as monitoring

• Coordinating and ensuring the necessary resource support for executing climate-related strategies and managing risks

Composed of the ESG management team, and coordinated by the Environmental Management Team

• Leading the identification of climate risks and opportunities and providing professional insights and recommendations for the development of climate-related strategies

• Continuously tracking climate-related performance, actively promoting improvement measures, and ensure the achievement of climate change goals

The relevant business/function responsibility departments are responsible for

Various Business and Functional Departments

• Implementing adaptation and mitigation strategies related to climate change

• Proposing and executing innovative operations and practices to address climate change topics

Strategy

The Company incorporates climate-related risks and opportunities into its strategic planning and decision-making processes, aligning with the International Sustainability Standards Board (ISSB)'s International Financial Reporting Sustainability Disclosure Standard 2–Climate-related Disclosures and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Climate-related risks are integrated into the Company's overall risk assessment practices and management systems, with the impact of such risks mitigated through refined risk identification, assessment, and management.

Financial Impact Analysis

The Company is progressively establishing internal mechanisms to track and assess the current and anticipated financial impacts of climate-related factors on revenue, costs, and capital expenditures, with the current focus primarily on qualitative analysis. At present, the impact of climate-related factors on the Company's financial status is mainly reflected in areas such as low-carbon transition investments, energy-saving technical upgrades, and clean energy adoption, with no material adverse effect on current profitability and cash flow overall. Concurrently accelerated global low-carbon transition, green and low-carbon technological innovation, growing demand for clean products, and the promotion of circular economy models are generating potential business opportunities and long term value enhancement prospects for the Company.

During the reporting period, the Company did not incur any asset losses due to climate-related events such a extreme weather. The Company continued to advance its low-carbon transition, with cumulative annual investment exceeding 10 million yuan dedicated to climate adaptation and mitigation efforts. The proportion of renewable energy usage increased to 25.34%, effectively reducing Scope 2 greenhouse gas emissions. In the future, the Company wil further increase resource allocation, continuously raise the share of renewable energy, and deepen green and lowcarbon operations.

Addressing Equipment High-Voltage Tripping and Operational Disruptions Caused by Extreme Weather

Extreme weather conditions frequently trigger temporary voltage dips in the power grid, causing highvoltage tripping in production eguipment, This results in production line interruptions and losses of workin-progress. The Company completed relevant research in 2025. In 2026, it will deploy dynamic voltage dip protection equipment, alongside completing equipment relocation, installation, commissioning, and personnel operational training. This will enable real-time voltage fluctuation management, ensuring stable equipment operation.

Case

Purchasing Property Insurance to Mitigate Extreme Weather Risks

To effectively mitigate property risks arising from extreme weather events such as typhoons and torrential rain, the Company has secured business property insurance for its core assets. This insurance not only provides compensation for direct losses caused by natural disasters like typhoons–including collapsed external walls, waterlogged equipment, and submerged goods–but also covers necessary expenses incurred through reasonable salvage operations undertaken to minimize damage.

Impact, Risk and Opportunity Management

The Company integrates climate risks and opportunities into its corporate strategy and decision-making processes incorporating the identification of climate-related risks into its overall risk assessment practices and management systems. Through meticulous risk identification, assessment and management, it mitigates the impact of climaterelated risks on the organization, thereby supporting the Company's pursuit of sustainable, high-quality development.

Identifying Climate Change Risks and Opportunities

Collect and analyze historical climaterelated data, industry reports, policy documents, etc., to identify potential climate risks that may impact business operations

• Analyze and collate the identified risks to form a risk inventory

Climate Risks and Opportunities Assessment

• Prioritize identified climate risks based on their probability of occurrence and potential impact severity, producing a prioritized list of climate-related risks and a prioritized list of climate-related opportunities.

• Ensure assessment outcomes align with the Company's current circumstances through management's collective participation in the risk assessment process.

Climate Change Risks and Opportunities Response

• Based on operational characteristics and in response to the findings of the assessment, formulate concrete and effective countermeasures to enhance infrastructure resilience, optimize the energy mix, and diversify supply chain arrangements.

Monitoring Climate Change Risks and Opportunities

• Regularly monitor trends in climate risks and opportunities to enable timely action.

• Organize periodic reviews by the risk management team of activities conducted over the preceding year, assessing the effectiveness of strategies and promptly adjusting and optimizing risk management measures.

Overview of Climate-Related Risk Prioritization

Overview of Climate-Related Opportunities Prioritization

Indicators and Targets

The Company has scientifically planned a tiered emissions reduction target framework with 2024 as the baseline year, extending through to 2050. Focusing on lowering carbon emission intensity as the key driver, it will conduct annual reviews of target progress striving to achieve carbon neutrality in its own operations by 2040 and across its entire value chain by 2050.

Medium-term Objectives

By 2030, achieve a 45% reduction in operational carbon emissions intensity (tCO2e per ten thousand yuan of revenue).

Strive to achieve carbon neutrality in our own operations by 2040.

Long-term Objectives

Strive to achieve carbon neutrality across our value chain by 2050.

The Company has established the Greenhouse Gas Inventory Procedure, which adheres to relevant requirements such as the GHG Protocol and ISO 14064. It conducts comprehensive carbon inventories covering all greenhouse gas emissions on a regular basis and systematically advances third-party carbon verification. Huizhou Highpowe and Guangdong Highpower have completed their 2025 Scope 1, 2, and 3 greenhouse gas inventories. By engaging third-party verification, they ensure the accuracy, completeness, and credibility of their carbon emissions data. Concurrently, Shenzhen Highpower, Springpower Technology, Icon Energy, and Vietnam Exquisite Power have undertaken independent 2025 Scope 1and Scope 2 carbon emissions inventories

³ High priority refers to issues that mgy have a significant direct impact on operations finances and strategy, and which reguire immedigte attention and the allocation of resources; medium priority refers to issues that may have some impact on certain business areas, requiring ongoing monitoring and flexibility in planning; low priority refers to issues that currently have a minor impact or a low probability of occurrence, and which should be incorporated into routine monitoring and long-term mgnggement processes

04

Harmonious Life

Employee Rights and Benefits

Compliance Recruitment

The Company strictly adheres to the core conventions of the International Labor Organization (ILO), internationa human rights standards, and the laws and regulations protecting labor rights in its operational jurisdictions, including the Labor Law of the People’s Republic of China. It has formulated and implemented internal systems such as the Worker Recruitment Management Regulations, , the Staff Recruitment Implementation Manual, and the Recruitment Implementation Manual to standardize recruitment operations management. The Company resolutely strictly prohibits the use of forced labor or the employment of child labor. In 2025, the Company recorded no incidents o non-compliance involving the employment of child labor or forced labor.

During the reporting period:

Awarded Outstanding Employer for Annual Social Contribution at the Southern Metropolis Daily Sustainable Innovation Ecology Conference

Prohibition of Child Labor and Forced Labor

Preventive Due Diligence

• Establish Highpower Technology’s Labor Rights Protection Policy, explicitly prohibiting the use of child labor and forced labor, and publishing reporting channels. This policy shall be disseminated to all employees, suppliers, and partners.

• Establish a rigorous pre-employment identity verification mechanism to ensure all new recruits meet the statutory minimum age for employment.

• Conduct due diligence on suppliers, incorporating requirements prohibiting child labor and opposing forced labor into supplier admission criteria and cooperation agreements.

Active Monitoring

• Establish multiple anonymous feedback channels to ensure employees and external parties can conveniently report suspected violations, while strictly safeguarding the confidentiality of whistleblowers' identities.

• Verify employment practices in key settings such as production workshops and outsourced projects, investigating violations including forced labor practices like compulsory overtime.

Remedial Oversight

• Establish clear rectification and accountability procedures for violations. Upon discovery of child labor or forced labor cases, take immediate remedial action and hold relevant responsible parties strictly accountable.

Equality and Diversity

The Company respects individual differences and diversity among its employees, and prohibits discrimination or prejudice based on ethnicity, race, gender, or any other factor. The Company has established the Prohibition of Discrimination Management Procedure and the Prohibition of Harassment and Abuse Management Procedure, continuously promoting anti-discrimination and anti-harassment policies to all employees. The Company routinely undergos client audits concerning anti-discrimination and harassment matters. In 2025, no incidents of discrimination or harassment occurred within the Company.

The Company places high priority on safeguarding the rights of employees in special groups. It has established a registration system for female employees during the three periods (pregnancy, maternity leave, and breastfeeding) implemented job risk identification and adjustment measures, and provided dedicated mother-and-baby rooms. Fo employees with disabilities, the Company has formulated Management Regulations for Employees with Disabilities standardising the entire process of recruitment, promotion, remuneration, and other management practices to ensure equal pay for equal work. It conducts specialized job risk assessments and provides tailored accommodations in areas such as accommodation, travel, and dining to effectively safeguard their equal rights

Employee Structure

In 2025, the Company Had a Total Workforce of 7,108 Employees

During the reporting period:

1,184 Ethnic minority employees

Management staff totals 413 individuals, with women accounting for 20.34% of this figure.

Remuneration Incentives and Benefits

The Company adheres to the principles of “determining grades by position, determining remuneration by grade matching personnel to roles, and adjusting remuneration upon role changes”. During the reporting period, it issued the Operational Staff Remuneration System and the Clerical Staff Remuneration Management System to standardize remuneration and performance management for both categories of employees. The Company periodically reviews and optimizes its remuneration structure to align with development needs and maintain market competitiveness Every two years, the Center of Excellence (COE) for Remuneration conducts market remuneration surveys and assessments, updating the remuneration structure as required

Operational Sequence

Adopting a broad-based remuneration framework comprising basic salary, overtime pay, positional skill allowance, night shift supplement, high-temperature allowance, performance bonus and other incentives.

Compensation Structure for Each Sequence

Management Sequence Professional Sequence

A broad-banded remuneration structure based on a job-grade system, comprising monthly salary, allowances and subsidies, annual performance bonus, special bonuses, and long-term incentives.

To enhance the effectiveness of motivating and retaining key personnel, the Company provides core talent with remuneration packages that are both reasonable and substantial, establishing and implementing a comprehensive incentive system covering short term, medium term and long term obiectives

The Company standardizes welfare management and benchmarks, establishing a comprehensive welfare protection system that supplements statutory benefits with diverse additional provisions.

Statutory Benefits

• Provide social insurance and housing provident fund for all employees

• All employees are entitled to various paid statutory leave entitlements in accordance with the law

Short term incentive

• For all current employees, establish intellectual property incentives and project-based incentives. In 2025, more than 3,000 employees received incentives.

• Including technical system professional title subsidies, timeliness bonuses, and proposal improvement awards

• Rewards shall be issued based on individual employees’ actual performance, their completion of tasks within projects, and their specific contributions.

Medium term incentive

• Including Outstanding Project Awards, R&D Project Awards, Government Project Awards, Cost Reduction and Efficiency Enhancement Incentives, Performance Bonuses, etc.

Incentive Benefits

• Presenting the Starlight Award and quarterly special awards to employees

• Performance bonus distribution constitutes a contribution incentive scheme established by the Company to recognize employees who meet performance targets.

Facilitation of Local Talent Incentives and Recruitment from Poverty-Alleviated Regions (2025)

Long term incentive

Implementing equity incentive schemes for key personnel in R&D, technical, operational and managerial roles

An employee share ownership scheme has been established for directors (excluding independent directors), senior management, and key personnel in R&D, technology, sales, smart manufacturing, and administration. The initial grant and reserved grant portions (covering 78 core employees in total) were completed in 2025, with nontransactional transfers of shares.

One individual submitted an application for highlevel talent incentive achievements and received a talent subsidy of 400,000 yuan

One postdoctoral researcher is currently in residence, receiving a subsidy of 120,000 yuan

A total of 277 individuals lifted out of poverty were introduced into employment (across the entire group)

Living Allowance

• Establish the Employee Home Purchase Loan Management Regulations to provide home purchase loans to eligible employees. The loan interest rate is significantly lower than the prevailing market rate for bank loans, thereby alleviating the financial burden of home purchases for employees

• Free assistance with Huizhou/Shenzhen residency registration procedures for employees, and support with talent introduction subsidy applications

• Provide resource support for employees to apply for local school places for their children

• Catering services encompass the provision of meals catering to diverse tastes

Dormitory accommodation for 2 to 6 occupants is available, featuring air conditioning, washing machines, water heaters, desks, wardrobes, bathrooms, and balconies

• The factory premises provide a shuttle bus service, offering scheduled pick-ups and drop-offs for commuting staff and weekend outings, ensuring a safe and convenient journey

Daily Benefits

• Provide employees with welcome packs and anniversary greetings

• Presenting gifts to staff during traditional festivals and on their birthdays

• Host monthly birthday celebrations for staff

• Cash gifts for employees’ weddings and births

Cultural Development Benefits

• Establish a diverse range of interest groups and provide funding support for their activities

• Organize a wide variety of cultural activities

Employee Benefits for Women

• Female employees shall be entitled to maternity leave of no less than 178 days, with adjustments and extensions made in accordance with statutory requirements based on the individual circumstances of the employee's childbirth

• From the day following the end of maternity leave until the child’s first birthday, one hour of paid breastfeeding leave shall be provided daily. An additional hour shall be granted for each additional infant

• Mother and baby rooms are set up in each of the Company's factories

Democratic Communication

The Company has established regulations such as the Procedures for the Administration of Freedom of Association and Collective Bargaining Rights, with all subsidiaries establishing trade unions and employee representative assemblies. It convenes quarterly trade union committee meetings, inviting employee representatives to participate in work summaries and planning sessions. Trade union representatives negotiate and sign collective agreements with employee representatives, clarifying core entitlements including remuneration and benefits, working conditions, and occupational health and safety. Addressing employee feedback, the trade union liaises with management to coordinate and develop solutions, fully safeguarding employees’ freedom of association and collective bargaining rights. In 2025, the Company and its subsidiaries all signed collective agreements.

The Company has established an open, transparent, and efficient two-way communication system, providing employees with diverse channels to conveniently express their concerns and offer feedback. These include a Staff Shared Services Center (SSC) counter, an online QR code feedback system, physical suggestion boxes, staff forums, democratic meetings, one-to-one discussions, and regular satisfaction surveys.

Democratic Life Meeting

The Company has consistently advanced a democratic meeting mechanism organized at departmental and team levels, focusing on policy briefings, communication of key departmental matters, and feedback on staff work and life issues. A total of 140 democratic meetings were convened, with cumulative attendance reaching 3,813 participants

Employee Shared Service Center

Guangdong Highpower has established a shared service center accessible to all employees, consolidating core human resources operations and administrative services to deliver convenient, one-stop solutions, The center features both in-person service counters and online feedback channels accessible via QR code scanning, encouraging staff to voice personal concerns or propose development suggestions at any time.

Highpower Governance Platform

The Company has established the “Highpower Governance” internal grievance platform, with dedicated personnel overseeing end-to-end information processing. The platform consolidates and analyzes collected data weekly, generating briefings that enable managers to promptly identify issues and swiftly formulate improvement measures, thereby fostering a virtuous cycle.

Employee Satisfaction Surveys

The Company conducts an annual employee satisfaction survey each year. During the reporting period, the Company organized a satisfaction survey for all employees via an anonymous electronic questionnaire. This survey centered on the Gallup Q12 employee engagement benchmark questionnaire, while also incorporating two additional specialized dimensions: logistical services and corporate cultural activities. The findings revealed a Gallup Q12 engagement score of 3.82 (out of 5), with 86.8% satisfaction regarding support services and 87.5% satisfaction with corporate cultural activities. These positive overall metrics provide clear direction for the Company to further optimize employee services, enrich cultural development initiatives, and enhance staff engagement.

Employee Care

In 2025, the Company collaborated with grassroots trade unions across its subsidiaries to provide employees with diverse cultural and recreational activities, comprehensively safeguarding work-life balance and continuously enhancing staff fulfilment, satisfaction and happiness. Concurrently, it recruited individuals who had been lifted out o poverty in accordance with local government recognition criteria, while promptly identifying and assisting employees facing hardship.

Employee Training and Development

Talent Development

The Company positions itself as a disseminator of corporate culture, a cradle for cultivating leadership talent, and a custodian of core technological expertise. It designs systematic training programs and diverse development approaches spanning all career stages, complemented by extensive learning resources. This ensures employees receive comprehensive and continuous growth opportunities at every professional level.

The Company disseminates recruitment information internally, encouraging competitive selection for positions to broaden employees’ career progression pathways. Externally, it attracts talent through diverse channels including social media, specialized recruitment platforms, internal referrals, and university-industry collaborations, thereby enhancing both the intensity and calibre of talent acquisition. This approach ensures precise alignment with the Company's talent development strategy and competency standards.

External Talent Attraction

• External Recruitment: The Company has expanded various recruitment channels and intensified efforts to attract talent.

• Campus Recruitment: Held quality campus recruitment drives at major universities, hiring a total of 101 graduates (including 4 PhD holders).

Professional Talent Reserve (University-Industry Collaborative Training)

• Collaborating with over ten universities on industry-academia partnerships, and undertaking joint master’s degree programs with South China University of Technology and Southern University of Science and Technology.

Highpower Training System Framework

New Employee Training

The Company provides a comprehensive and systematic induction training program for all newly recruited employees and recent graduates, helping new staff to swiftly integrate into the Company culture and working environment.

Company-level training

• Online：General skills, professional foundations, etc

• Offline：Introduction to the Company, information security, quality management philosophy, employee code of conduct, core values of Highpower, stress management, introduction to administrative services, etc.

Sector-level training

• Introduction to department organizational structure

• Department responsibilities and objectives

• Product and service knowledge

• Business processes

• Crossdepartmental learning

• Systems and tools • Mentoring (job skills)

SF System & Online Learning Platform Probation Period Management Assessment

For newly recruited graduates, the Company has designed a comprehensive training program adhering to the core principle of integrating training with practical application. This encompasses two key components: military-style team-building exercises and corporate culture courses

Corporate culture courses: Help new employees deeply understand the essence of the corporate culture and master necessary workplace skills and professional knowledge.

Boot camp and team-building activities: Help new employees hone their willpower and physical fitness, enhance their awareness of organizational discipline and teamwork, and boost their sense of team honor.

Career readiness (Pre-employment)

Ideological readiness (Within one week of employment)

(Within 3 months of employment)

On-the-job training (Within 6 months of employment)

Case

The Peacock Training Program

The Company runs a six-month Peacock Training Program annually, establishing a dual-engine curriculum system combining specialized and general skills. Weekly and monthly sessions cover specialized courses R&D technical workshops, and general training modules, cultivating new recruits through a core logic of “adaptation-consolidation-application”. The program comprises 41 developed courses, achieving a course satisfaction rating of 4.91 (out of 5) and a trainer satisfaction rating of 4.93 (out of 5).

Development of General Competencies

The Company adopts a blended learning model, combining online and offline training to enhance employees comprehensive competencies. It systematically builds a universal skills development framework covering al workplace scenarios. Centered on core professional soft skills, it has developed and rolled out a series of courses including Business Etiquette, High-Performance Employee Behavioral Patterns, Business Writing Standards, and Caree Development and Role Qualification Guidelines. These programs empower staff to improve their communication and presentation skills, professional image, goal execution capabilities, and self-development planning abilities.

Management Capability Development

The Company tailors differentiated leadership training resources to meet the management requirements of positions at various levels, helping employees at all levels to continuously refine and enhance their management capabilities During the reporting period, the Company provided employees with leadership development training covering topics such as team leader management skills, the Lean Leadership workshop, role awareness for middle and junior-leve supervisors, and leadership themed seminars.

Online Platform for Cultivation of General Quality and Ability - Highpower Cloud Academy

The Company established the Highpower Cloud Academy online learning platform, covering foundational coursework through to advanced skills development. As of the end of the reporting period, the platform hosted 1,570 public courses, comprising 160 on executive management, 695 on specialized management, 194 on personal development, and 521 in other categories. In 2025, the total number of users logging into the Cloud Academy reached 1,361, with total training hours amounting to 4,837.7 hours and a cumulative total of 2,934 course attendances.

Professional Competence Development

The Company tailors training programs and learning pathways to specific role requirements. Training content comprehensively covers electrochemical systems, product quality, battery performance, and safety standards, encompassing over 40 specialized courses in total. This effectively enhances employees professional skill levels.

During the reporting period:

Total number of employees trained reached 7,108, achieving 100% coverage

Average hours of employee training: 26 hours

Career Development

The Company continuously refines its talent development system and has formulated the Performance Management Measures to achieve standardized management of the entire employee performance evaluation and promotion process, ensuring that all stages adhere to the principles of fairness and transparency. In 2025, the proportion of employees who received performance and career development assessments was 100%.

Performance Target Setting

• Two-way communication: Through regular two-way communication mechanisms, ensure employees fully comprehend performance objectives and are able to voice their opinions and suggestions

• Objective setting adheres to the SMART principles: ensuring all performance targets are Specific, Measurable, Achievable, Relevant, and Time-bound

• Continuous improvement: Regularly review and adjust performance targets to ensure they remain aligned with the Company's strategic direction and can adapt to evolving business requirements

Performance Communication

• Establish an effective performance feedback mechanism, conducting regular assessments and providing feedback to employees. This helps staff understand their strengths and areas for improvement, clarifying the direction for development

Performance Coaching

• Regular one-to-one coaching sessions: Arrange scheduled one-to-one coaching meetings to gain timely insight into employees' work progress and any issues encountered, providing specific guidance and recommendations.

Encourage staff to actively participate in performance improvement programs, providing necessary training and support

Instant feedback mechanism: Establish an instant feedback mechanism that provides constructive input not only during formal assessments but also throughout daily work, enabling employees to continuously improve

• Developing a Performance Management Handbook: Compiling a performance management handbook to ensure managers and staff understand the logic and methodology of performance management

Performance Evaluation

Fair and transparent appraisal process: Ensuring performance evaluation criteria and procedures are openly communicated to all staff. Appraisal outcomes from matrix managers and line managers are considered during collective review within departments. Concurrently, channels for employee performance appeals are established to guarantee comprehensive and objective assessments.

• Regular assessment mechanism: Conduct quarterly or annual performance evaluations to promptly identify and resolve issues

Qualification Framework

The Company has established a scientific, standardized, fair, impartial and quantifiable competency framework through comprehensive assessment and certification of employees' academic qualifications, work experience professional skills and behavioral standards. This framework not only assists employees in clarifying their persona development pathways but also effectively aligns talent development with the Company's strategic objectives. As of the end of the reporting period, the coverage rate for the establishment of qualification standards across all job categories reached 97.7%, with an overall certification pass rate of 81.9%.

Talent Promotion Mechanism

The Company establishes multiple career progression pathways encompassing management, specialist, and operational tracks, integrating vertical advancement with lateral development opportunities. This enables employees to independently choose their growth direction based on personal capabilities and professional interests. Promotions are strictly determined by core criteria including performance outcomes, comprehensive competencies, and tangible contributions. Promotion standards are maintained with full transparency throughout the process, ensuring all staff clearly understand the conditions and opportunities for advancement. This fully safeguards the fairness, impartiality and transparency of the promotion process

Horizontal career progression pathways

Internal Trainer Scheme

The Company has formulated the Internal Trainer Management Measures to further accelerate the development of its internal trainer team. Internal trainers are selected and appointed through company-wide recruitment processes, undertaking relevant training programs at the center/subsidiary level across the Group. The Company opens a unified portal for trainer certification and promotion each April. Following an annual comprehensive assessment, instructors meeting the criteria are arranged for advancement. Concurrently, internal and external training programs are organized to enhance instructor capabilities. A remuneration structure directly linked to instructor grade and teaching hours is established to incentivize instructors to contribute knowledge and share expertise.

Occupational Health and Safety

Governance

The Company strictly adheres to and implements the relevant laws and regulations, such as the Work Safety Law of the People's Republic of China and other loca laws in the place of operation. The Company has developed internal management regulations such as the Employee Occupational Health and Safety Manual, the Work Safety Responsibility System, the Safety Construction Management System, and the Warehouse Safety Management System. During 2025, the Company established 36 comprehensive group safety management system documents, finalized safety contingency plans which were duly filed with local authorities. Both major production bases— Guangdong Highpower and Huizhou Highpower— have obtained ISO 45001 certification and maintain effective system operation.

The Company has established a robust occupational health and safety governance framework, setting up a Work Safety Management Committee, a Safety Management Department, and safety offices at each production site to implement safety management. This has formed a safety management network coordinated by headquarters with subsidiary companies working in concert. The Company rigorously implements its safety production accountability system, clearly defining safety responsibilities for all positions from senior management to frontline staff. All personne sign safety production responsibility agreements. Furthermore, the Company implementes the Safety Production Reward and Punishment System, which directly links key safety performance indicators with the performance evaluations of department heads, thereby incentivizing and ensuring that employees at all levels strictly adhere to their safety production responsibilities.

Highpower Technology Work Safety Management Committee Structure

Chairman of the Safety Committee

• Appointed from among the Company’s senior management, this role bears overall responsibility for the Group's safety production work and shares joint liability for the safety of contracted (designated liaison) units.

Safety Director

• Supervise the implementation and execution of the primary safety responsibilities of each member of the Safety Committee

Member of the Safety Committee

• Heads of all departments shall serve as members of the Safety Committee, bearing overall responsibility for safety management within their respective departments.

Safety Management Department

• Responsible for the implementation of the safety management system, the effectiveness of safety regulations, and the efficacy of comprehensive safety oversight.

Safety Office

• The Safety Management Department oversees safety offices within each subsidiary. These offices are staffed by dedicated personnel holding qualifications such as Enterprise Safety Management Personne Certificates and Registered Safety Engineer credentials.

• Each workshop shall appoint part-time safety officers to assist the Safety Office in carrying out routine safety management duties.

Strategy

The Company conducts regular annual safety risk identification and assessment exercises, compiling a Safety Risk Identification and Evaluation List. Corresponding management plans and response strategies are formulated fo significant risks.

Impact, Risk and Opportunity Management

The Company strictly adheres to the requirements of the ISO 45001 occupational health and safety management system, systematically undertaking safety risk identification, assessment, monitoring and management. It has established a comprehensive process spanning hazard identification, risk evaluation and tiered control megsures

Safety Risk Management and Inspection

The Company continuously optimizes its safety risk assessment and management mechanisms, dynamically updating occupational health risks across all departments. Through regular planning meetings convened by the Safety Committee, joint safety inspections are organized monthly to achieve comprehensive hazard identification, rectification and closed-loop management. During the reporting period, the Company organized safety inspections that identified a total of 1,810 hazards, achieving a rectification rate of 98%. All major safety hazards were rectified at a rate of 100%, while the remaining outstanding items are being addressed according to the planned schedule. These efforts effectively mitigate various safety risks, ensuring that production and operations proceed safely and in an orderly manner.

Safety Risk Assessment and Management Mechanism

Establish a Safety Management Department, a Work Safety Management Committee and a Safety Office, clearly defining the responsibilities of each organization.

Establish various safety management systems and provide guidance for all management activities.

Conduct safety meetings to plan and deploy safety initiatives

Organize joint safety inspections to promptly identify and rectify potential hazards.

Conduct emergency drills and safety education dissemination and training activities

Safety and Emergency Management

The Company has established a comprehensive emergency response plan system for production safety incidents, encompassing documents such as the Emergency Preparedness and Response Management System, the Comprehensive Emergency Plan, the Specialized Emergency Plans, and the On-site Emergency Plan. Following rigorous expert review, these plans have been duly filed with the local emergency management authority in accordance with relevant regulations. The Company has established an emergency management organizationa structure headed by the chief executive as commander-in-chief, with the vice-chairman of the Safety Committee serving as deputy commander-in-chief. Key executives and heads of critical departments form specialized teams responsible for communications liaison, evacuation and security, emergency rescue, medical assistance, and logistical support. This structure bears overall responsibility for plan approval, emergency response decision-making, and command coordination during incidents.

Emergency Management Organizational Structure

Chief Executive(Company Principal or Deputy Managing Director)

Deputy Commander(Vice-Chairman of the Safety Committee / Deputy General Manager)

On-Site Supervisor(Safety Officer/Department Manager)

Liaison Team

Safety Evacuation

Security Team

Emergency

Response Team

Medical

Rescue Team

Logistics

Support Team

During the reporting period, the Company systematically organized and completed 51 practical emergency drills covering core risk scenarios including li-ion battery emergency response, hazardous chemical spill emergency response, special equipment emergencies, fire emergencies, and confined space emergencies. The completion rate was 100%, and the participation rate among employees scheduled to take part in the drills was also 100%.

Management of Hazardous Chemicals

The Company strictly adheres to the Hazardous Chemicals Management System, establishing rigorous contingency management procedures for high-risk chemicals such as electrolytes (which possess flammable and explosive properties) and alcohol. From the procurement stage, the Company implements a rigorous supplier approva mechanism, explicitly requiring all chemical suppliers to possess lawful operating credentials and complian production and transportation conditions. Concurrently, it reinforces dedicated storage facilities and designated personnel oversight during the storage phase. Through continuous staff training, the Company ensures the safety and controllability of hazardous chemicals throughout their entire lifecycle.

Safety Culture Development

In 2025, the Company further intensified its safety training efforts by implementing an annual safety training program. This was complemented by specialized awareness campaigns and diverse skills training initiatives during themed events such as the “Work Safety Month” and “Fire Prevention Month”. Concurrently, the Company enforced a certification requirement for on-duty personnel, thereby comprehensively strengthening the foundations of its safety management framework.

During the reporting period:

12,612 participants

84 participants

Holiday safety training sessions attended by

8,953 participants

training

1,164 participants

277 participants

Specialized operations training 2,656 participants

Mechanical hazard training

179 participants

Risk identification training for

56 participants

Construction safety training

Road safety training for

1,111 participants

1,023 participants

Enhance the System for Part-time Safety Officers

During the reporting period, the Company redefined the selection criteria and procedures for part-time safety officers across workshops and teams, clarifying staffing requirements to ensure full coverage across day and night shifts. The number of part-time safety officers was increased by 64 personnel, and a dedicated work group was established to facilitate rapid experience sharing and issue feedback. Throughout 2025, a total of 29 specialized skills training sessions were organized for part-time safety officers and volunteer fire brigades. These covered risk identification hazard investigation, and emergency response procedures, with participation reaching 523 individuals

Safeguarding Occupational Health

The Company strictly adheres to the Occupational Disease Prevention and Control Law of the People’s Republic of China and other laws, regulations, and provisions applicable to its operational locations. It has established systems including the Occupational Health Surveillance and Occupational Disease Prevention and Control Managemen Procedures and the Occupational Health and Safety Management System. An Occupational Health Leadership Group has been formed, with subordinate health management bodies established for each production team, enabling comprehensive monitoring of occupational health. The Company continuously implements hazardous substance controls, ensures funding for occupational disease prevention, organizes annual occupational health examinations prioritizes workplace environment optimization, and enhances protective facilities to foster a healthy and safe working environment for employees. During the reporting period, the Company conducted first-aid training and certified 100 personnel, further strengthening on-site emergency response capabilities. In 2025, the Company recorded no incidents of dust concentration exceeding permissible limits and no cases of occupational disease.

Key Measures for Occupational Health and Safety Management

Engage qualified third-party agencies to conduct regular testing and assessment of occupational hazard factors in the workplace. The results shall be made public to all employees to ensure compliance with national occupational exposure limits.

• Ensure that pre-employment, in-service and post-employment medical examinations are carried out for staff working in roles involving exposure to occupational health hazards.

At workstations where occupational disease hazards exist, conspicuous warning signs and Chinese explanatory notices must be displayed. Furthermore, employees must be truthfully informed in their employment contracts of the hazards associated with their positions, the potential consequences and the protective measures required, thereby fulfilling the statutory duty of disclosure.

Establish occupational health noticeboards in prominent locations throughout the workshop, regularly updating protective measures and precautions to enhance employees' awareness of selfprotection.

Implement 100% coverage of personal dosimetry cards for all radiation-exposed personnel, with cumulative coverage reaching 240 individuals by 2025, to ensure effective implementation of radiation protection measures.

Indicators and Targets

Appendix

Appendix I Key Performance Indicators

Governance Performance

⁴ The single case involving 2024 has been concluded, with Highpower Technology emerging as the prevailing party. Regarding the three cases related to corruption involving the Company in 2025, the relevant judicial procedures are currently progressing as normal. The Company will continue to strengthen its compliance mgnggement system rigorously prevent various integrity-related risks and ensure the Company's standardized operations

Environmental Performance

⁵ The scope of data collection for energy management and water resources management includes Shenzhen Highpower, Springpower Technology, Icon Energy, Huizhou Highpower, Vietnam Exquisite Power and Guangdong Highpower. The scope of data collection for exhaust emissions, wastewater discharge waste and environmental management includes Guangdong Highpower, Huizhou Highpower, Springpower Technology and Vietnam Exquisite Power. production lines commenced operations in 2023, whereas full-scale production was achieved in 2024. ⁷ The statistics for watse gas emissions cover only organized emissions. ⁸ The scope of the performance data on non-hazardous waste primarily covers general industrial solid waste.

⁹ Regarding the restatement of information in the 2024 ESG Report, the Scope 2 greenhouse gas emissions for 2023 were calculated using the location-based accounting method

Social Performance

The overall reduction in supplier safety training sessions was influenced by the decrease in construction projects.¹⁰

Appendix II Benchmarking Indicators

UN SDGs Indicators

No Poverty

Good Health and Well-being

Quality Education

Gender Equality

Clean Water and Sanitation

Honest Governance: Community Investment Participation

Affordable and Clean Energy

Harmonious Life: Employee Rights and Benefits

Harmonious Life: Occupational Health and Safety

Harmonious Life: Employee Rights and Benefits

Honest Governance: Community Investmen Participation

Harmonious Life: Employee Training and Development

Green Planet: Emissions and Waste Management

Decent Work and Economic Growth

Green Planet: Energy and Resource Management

Honest Governance: Corporate Governance

Harmonious Life: Employee Rights and Benefits

Industry, Innovation and Infrastructure

Reduced Inequalities

Responsible Consumption and Production

Climate Action

Peace, Justice and Strong Institution

Partnerships for Goals

Immaculate Quality: Opportunities in Clean Tech and Circular Economy

Honest Governance: Community Investment Participation

Harmonious Life: Employee Rights and Benefits

Immaculate Quality: Opportunities in Clean Tech and Circular Economy, Product Quality and Safety, Customer Relationship Management

Green Planet: Environmental Management and Ecological Conservation, Emissions and Waste Management, Energy and Resource Management

Green Planet: Addressing Climate Change

Sustainable Development Management

Honest Governance: Corporate Governance, Business Ethics Management, Information Security and Privacy Protection

Immaculate Quality: Innovation-Driven Development, Sustainable Supply Chain

Indicator of Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial Implementation)

GRI Content Index

Appendix III Glossary

Appendix IV Correspondence of Company Names and Abbreviations

Appendix V Independent Assurance Statement

SGS

ASSURANCE STATEMENT

REPORT ON SUSTAINABILITY ACTIVITIES IN THE SHENZHEN HIGHPOWER TECHNOLOGY CO., LTD.'S ESG REPORT FOR 2025

NATURE OF THE ASSURANCE/VERIFICATION URE

SGS-CSTC Standards Technical Services Co., Ltd. (hereinafter referred to as SGS-CSTC) was commissioned by Shenzhen Highpower Technology Co.,Ltd. (hereinafter referred to as Highpower Technology) to conduct an independent assurance of the ESG Report for 2025 (Chinese version) for the period of January 1. 2025 to December 31, 2025.

INTENDED USERS OF THIS ASSURANCE STATEMENT

This Assurance Statement is provided with the intention of informing all Highpower Technology's Stakeholders.

RESPONSIBILITIES

The sustainability information in the ESG Report for 2025 and its presentation are the responsibility of Highpower Technology's ESG governing body and the management, SGS-CSTC has not been involved in the preparation of any of the material included in the ESG Report for 2025

Our responsibility is to express an opinion on the text, data, graphs and statements within the scope of assurance based upon sufficient and appropriate objective evidence

SGS-CSTC hereby states that it shall not be held responsible or liable for any direct, indirect, incidental, or consequential damages or losses arising from or in connection with the use of information provided in this report.

ASSURANCE STANDARDS, TYPE AND LEVEL OF ASSURANCE

The assurance of this report has been conducted according to the AA1000 Assurance Standard (AA1000AS v3 a standard used globally to provide assurance on sustainability-related information across organizations of al types, including the evaluation of the nature and extent to which an organization adheres to the AccountAbility Principles (AA1000AP, 2018)

SCOPE OF ASSURANCE AND REPORTING CRITERIA

The scope of the assurance included evaluation of quality, accuracy and reliability of specified performance information as detailed below and evaluation of adherence to the following reporting criteria: Reporting Criteria

Continuous Supervisory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange Sustainability Report (For Trial Implementation)

ASSURANCE METHODOLOGY

The assurance comprised a combination of pre-assurance research, interviews with relevant employees on-site at No, 38, Songboling Avenue, Starting Area of China-Korea (Huizhou) Industrial Park, Zhongkai High-tech District, Huizhou City, Guangdong Province, P.R. China, and remote at Building 1, 68 Xinxia Road, Pinghu Town. Longgang District, Shenzhen City, Guangdong Province, P.R, China, including documentation and record review and validation where relevant

LIMITATIONS

Data drawn directly from independently audited financial accounts and intensity data calculated based on financial data has not been checked back to source as part of this assurance process.

SGS

The Huizhou Highpower and Guangdong Highpower's greenhouse gas emission related data in the ESG Report for 2025 has been directly adopted from the independent third party verification data and has not been double verified in this audit.The Shenzhen Highpower, Spring Power Technology, Icon Energy and Vietnam Exquisite's greenhouse gas emissions related data in the ESĠ Report for 2025 was calculated by Highpower Technology. In the context of the present assurance engagement, our procedures were limited to sample-based validation.

This assurance engagement covered the group level of Highpower Technology.

INDEPENDENCE AND COMPETENCE

The SGS Group of companies is the world leader in inspection, testing and certification, operating in multiple countries and providing services. As an affiliate of SGS Group, SGŠ-CSTC affirm our independence from Highpower Technology, being free from bias and conflicts of interest with the organisation, its subsidiaries and stakeholders.

The assurance team was assembled based on their knowledge, experience and qualifications for this assignment.

FINDINGS AND CONCLUSIONS

ASSURANCE OPINION

On the basis of the methodology described and the assurance work performed, we believe that the specified performance information included in the scope of assurance is accurate, reliable, has been fairly stated. The Highpower Technology's ESG Report for 2025 has been prepared in accordance with the Four Principles of AA1000.

We believe that the organisation has chosen an appropriate level of assurance for this stage in their reporting.

ADHERENCE TO AA1000 ACCOUNTABILITY PRINCIPLES (2018)

INCLUSIVITY

The Highpower Technology's ESG Report for 2025 has demonstrated that the organization identified its stakeholders, collected their expectations and concerns, established methods for stakeholder communication and engagement, and undertaken various forms of dialogue and interaction with them.

MATERIALITY

The Highpower Technology's ESG Report for 2025 has reasonably disclosed significant issues and indicators that materially affect stakeholder evaluations and decisions, reflecting the organization's most significant impacts on economic, environmental, and social matters based on the concerns raised by relevant stakeholders.

RESPONSIVENESS

The Highpower Technology's ESG Report for 2025 has demonstrated the established channels for stakeholder interaction and has fully addressed stakeholder concerns and expectations. Additionally, it has provided transparent responses on material issues to an appropriate extent

IMPACT

The Highpower Technology's ESG Report for 2025 has provided an account of the monitoring and measurement of the principal activities' impacts concerning environmental, social, and governance (ESG) issues.

QUALITY AND RELIABILITY OF SPECIFIED PERFORMANCE INFORMATION

On the basis of the methodology described and the verification work performed, we checked management documents, HR system data, receipts, minutes of meetings, ISO certifications, etc. We have confidence that the specified performance information included in the scope of assurance is reliable at a moderate level of scrutiny for Highpower Technology.

ADHERENCE TO GRLSTANDARDS 2021

The assurance team concludes that the Highpower Technology's ESG Report for 2025 has been prepared with reference to the requirements of GRI Standards 2021.

ADHERENCE TO CONTINUOUS SUPERVISORY GUIDELINES NO, 17 FOR COMPANIES LISTED ON SHENZHEN STOCK EXCHANGE—SUSTAINABILITY REPORT (FOR TRIAL IMPLEMENTATION) The assurance team concludes that the Highpower Technology's ESG Report for 2025 has been prepared in accordance with the requirements of Continuous Supervisory Guidelines No. 17 For Companies Listed On Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation)

SGS

RECOMMENDATIONS

All observations pertaining to commendable practices. sustainable development activities. and managerial recommendations identified throughout the assurance process have been thoroughly communicated with relevant management divisions of Highpower Technology to serve as a reference for their ongoing efforts towards continuous imorovement.

Signed:

For and on behalf of SGS-CSTC

David Xin Sr. Director – Business Assurance 16/F Century Yuhui Mansion, No. 73, Fucheng Road, Haidian District, Beijing, P.R. China

Mar. 11th, 2026 WWW.SGS.COM

AA1000 Licensed Report 000-8/V3-785PJ

Reader Feedback Form

Thank you for reading the Highpower Technology 2025 ESG Report. To better provide valuable information to you and other stakeholders, and to enhance Highpower Technology’s ESG management capabilities and standards, the Company sincerely invites you to offer your valuable comments and suggestions on this report.

Which category of stakeholder do you belong to?

□ Shareholders and investors □ Government and regulatory bodies □ Customers

□ Suppliers and partners □ Employees other than the Board and senior management

□ Board and senior management □ NGOs/social organizations/media □ Other, please specify

Your overall assessment of Highpower Technology’s ESG report:

□ Very satisfied □ Fairly satisfied □ Moderately satisfied □ Fairly dissatisfied □ Dissatisfied

Your assessment of Highpower Technology’s fulfilment of its environmental, social and corporate governance responsibilities:

Thank you for your support of Highpower Technology’s ESG initiatives. Should you have any further comments o suggestions regarding this report, please feel free to contact the Company via the following channels.

Environmental Responsibility:

Telephone: 0755-8968-6543

□ Very satisfied

Address: Board Office, Shenzhen Highpower Technology Co., Ltd., No. 68 Xixia Avenue, Pinghu Subdistrict, Longgang District, Shenzhen, Guangdong, China

□ Moderately satisfied

□ Fairly dissatisfied

□ Dissatisfied

Social Responsibility:

Email: hpcapital@highpowertech.com

□ Very satisfied

□ Fairly satisfied

□ Moderately satisfied

□ Fairly dissatisfied

□ Dissatisfied

Corporate Governance Responsibilities:

□ Very satisfied □ Fairly satisfied □ Moderately satisfied □ Fairly dissatisfied □ Dissatisfied

Your assessment of the clarity, accuracy and completeness of the ESG disclosures in this report:

Clarity:

□ Very satisfied □ Fairly satisfied □ Moderately satisfied □ Fairly dissatisfied □ Dissatisfied

Other comments and suggestions:

Accuracy:

□ Very satisfied □ Fairly satisfied □ Moderately satisfied □ Fairly dissatisfied □ Dissatisfied

Integrity:

□ Very satisfied □ Fairly satisfied □ Moderately satisfied □ Fairly dissatisfied □ Dissatisfied

Your assessment of the content arrangement and layout design of this report:

□ Very satisfied □ Fairly satisfied □ Moderately satisfied □ Fairly dissatisfied □ Dissatisfied

Headquarters

Building 1, 68 Xinxia Road, PinghuTown, Longgang District, Shenzhen Guangdong, China 518111 Tel: +86-755-8968-6543 Fax: +86-755-8968-6916 E-mail: Marketing@highpowertech.com Website: www.highpowertech.com

Hong Kong Office

Room 2003, 20/F, Prosperity Place, NO.6 Shing Yip Street, Kwun Tong, Kowloon, Hong Kong Tel: +852-3565-0188 Fax: +852-3565-0176

Taiwan Contact Information

3F., No.342-1, Sec 7, Chengde Rd., Beitou Dist., Taipei 112, Taiwan Tel: +886-2-2828-5987 Fax: +886-2-2828-5590

U.S. Contact Information 2382 Terraza Ribera Carisbad, CA 92009 Tel: +1-909-214-2482