虹美菱B：2025年度环境、社会及公司治理(ESG) 报告（英文）

MELING美菱

MELING美菱

Changhong Meiling Co., Ltd. Environmental, Social and Governance (ESG) Report 2025

Report Preparation Notes

Introduction

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

Preparation Basis

Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange — Sustainability Report (Trial) issued by the Shenzhen Stock Exchange (hereinafter referred to as the " Guidelines")

Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen Stock Exchange — Preparation of Sustainability Report issued by the Shenzhen Stock Exchange

China Corporate Sustainability Reporting Guide (CASS-ESG 6.0) issued by the China Enterprise Reform and Development Society, and Zeren Yun Research Institute

Sustainability Reporting Standards (GRI Standards 2021) issued by the Global Reporting Initiative (GRI)

United Nations 2030 Sustainable Development Goals (SDGs)

Sustainability Accounting Standards Board Standards (SASB Standards)

International Financial Reporting Sustainability Disclosure Standards No. 1 — General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and International Financial Reporting Sustainability Disclosure Standards No. 2 — Climate-related Disclosures (IFRS S2) issued by the International Sustainability Standards Board (ISSB)

Guiding Opinions on Central Enterprises' Fulfillment of High-Standard Social Responsibility in the New Era issued by the State-owned Assets Supervision and Administration Commission of the State Council

Report Scope

The reporting period of this Report is from January 1, 2025, to December 31, 2025 (referred to as the "Reporting Period"). To enhance the comparability and forward-looking nature of this Report, certain disclosures appropriately reference data from previous years or includes forward-looking descriptions. The preparation of this Report covers Changhong Meiling and its subsidiaries. Unless otherwise specified, the statistical scope aligns with the annual report.

Data Description

The data used in this Report is sourced from the Company's operational raw data, publicly available government data, annual financial data, internal statistical reports, and other relevant sources. Financial data in this Report is denominated in RMB. In case of any discrepancies with the financial report, the financial report shall prevail.

Definitions

Report Access and Feedback

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

Report Preparation Notes 01 Chairman's Message 04 Board of Directors' ESG Statement 06 About Changhong Meiling 07 Corporate Profile 07 Corporate Culture 07 Corporate Development Course 08 Meiling 2025 Milestones 09 ESG Management 10 Sustainability Strategy 10 Sustainability Governance 11 Materiality Assessment 14 Due Diligence and Stakeholder Communication 15

Future Prospects 76 Appendix 78

Improvement of Company Governance 18 Building a Robust Risk Control Defense Line 20 Ensuring Information Transparency 22 Adhering to Business Ethics 24

Combat with Climate Change 40 Environmental Compliance Management 47 Resource Recycling 51 Green Production and Operations 57

Building a Responsible Value Chain 62 Leading Industry Development 65 Empowering Employee Growth 67 Dedicated to Giving Back to Society 75

Advancing Smart Manufacturing, Renewing Better Services

Stimulating Innovation Vitality 28 Accelerating Intelligent Transformation 32 Pursuing Excellence in Quality 34 Building Service Excellence 36

Chairman's Message

2025 was a crucial year for bringing the 14th Five-Year Plan to a successful conclusion and a pivotal year for Changhong Meiling to accelerate its leapfrog development and achieve new breakthroughs. In the face of a rapidly changing market environment, we remained firmly committed to high-quality development. Focusing on four key dimensions—compliant governance, intelligent transformation, low-carbon development, and social responsibility—we advanced our ESG strategy in a coordinated manner, steadily fulfilled our ESG responsibilities, and continued to create diversified value, delivering solid results amid challenges and forging ahead with strong momentum.

During the year, we maintained strong governance discipline and continuously improved governance efectiveness.

We consistently regarded compliant operations as the lifeline of the Company's development. On this basis, we further improved our corporate governance structure, refined the operating mechanisms of the shareholders' meeting, the Board of Directors, and management, clarified the boundaries of powers and responsibilities at each level, and enhanced the scientific rigor, standardization, and eficiency of decision-making. We also strengthened our internal control, compliance, and risk management systems, reinforced the “three lines of defense" for risk prevention and control, and upheld business ethics. We also continued to improve investor relations management, ensured compliant and transparent information disclosure, and efectively safeguarded investor interests.

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

During the year, we remained committed to our mission and advanced green development in a solid and orderly manner.

We consistently regarded green development as one of our core strategies and remained committed to reducing the environmental impact of our products and operations across the full lifecycle. We strictly complied with environmental regulations and continuously strengthened pollution prevention and control. Following a development path centered on energy conservation, resource efficiency, and circularity, we integrated green development concepts throughout the entire lifecycle, covering raw material procurement, product design, manufacturing, packaging and logistics, and product recycling. We continued to promote the green upgrading of our products and injected strong momentum into the Company's low-carbon transformation through concrete actions to protect the environment.

During the year, we actively fulfilled our responsibilities and continued to create value for stakeholders.

We attached great importance to supply chain development and worked closely with our partners to practice responsible procurement and build a green, secure, and sustainable supply chain. We adhered to a people-oriented philosophy by protecting employees' rights and interests and providing broad platforms for their growth and development. We also actively fulfilled our social responsibilities by supporting rural revitalization and participating in public welfare initiatives, demonstrating corporate care through concrete actions. In doing so, we generated social value while creating economic value and contributed to building a better society.

With solid development momentum and a keen awareness of the significant responsibilities we bear, we are embarking on a new journey with renewed determination.

Looking ahead, Changhong Meiling will remain firmly committed to high-quality development, with product innovation as the core driver, digital transformation as the underpinning, and talent development as the foundation. We will continue to deepen green technology innovation and advance low-carbon practices across the entire value chain. By leveraging strong technological capabilities to drive the industry toward higher-end, smarter, and greener development, fulfilling our ESG commitments through pragmatic actions, rewarding shareholders' trust with solid performance, and responding to social expectations with a strong sense of responsibility, we will strive to write a new chapter of sustainable development for Changhong Meiling in advancing Chinese modernization.

Board of Directors'ESG Statement

The Board of Directors is the highest decision-making body for the Company's ESG matters, responsible for integrating ESG considerations into the Company's management policies and operational decision-making processes. The Board places significant emphasis on ESG initiatives and has established an ESG Management Committee, chaired by the Chairman of the Board. The ESG Management Committee is responsible for studying and formulating the Company's ESG strategic plans and objectives, establishing the management system, evaluating and reviewing the Company's ESG-related strategies, risks, and implementation performance, and reviewing the ESG Report prior to its submission to the Board for approval.

Changhong Meiling highly values the expectations of stakeholders regarding ESG matters. Taking into account industry characteristics and key issues arising from the Company's operations, the Company conducts stakeholder engagement surveys, assesses, prioritizes and screens ESG topics, and timely adjusts and determines its material ESG topics.

About Changhong Meiling Corporate Profile

Founded in 1983 and headquartered in Hefei, Anhui, China, Changhong Meiling became the first listed company in Anhui Province when its A-share stock was listed on the Shenzhen Stock Exchange (hereinafter the "SZSE") in 1993 (Stock Code: 000521.SZ). In 1996, it B-share stock was also listed on the SZSE (Stock Code: 200521.SZ), making it Anhui Province's first dual-listed company (A- and B-shares) and earning recognition that same year as one of the Shenzhen Stock Exchange's top ten high-performing listed companies.

As a national benchmark enterprise for technological innovation, the Company has consistently strengthened its core competitivenes through technology and product innovation. The Company has achieved continuous breakthroughs across multiple domains, including intelligent and simulation technologies; freshness preservation, odor purification, and ultra-low temperature refrigeration energy-saving and air-cooling solutions; thin-wall and ultra-thin design; as well as washing performance and fabric care. The Company's achievements have been recognized with numerous national honors, such as being designated a "National Green Factory" and a "National Technology Innovation Demonstration Enterprise." It has also been named a "Leading Enterprise in Quality in China's Home Appliance Industry" and a "National Demonstration Enterprise for Industry-Academia-Research Collaboration Innovation," while its "Smart Refrigerator Intelligent Manufacturing" initiative was selected as a national pilot demonstration project.

Corporate Culture

Corporate Spirit

Core Values

Corporate Mission

Hard Work, Pioneering, Perseverance, and Excellence

Code of Conduct

Accountability, Initiative, Innovation, and Cooperation

Brand Proposition

Corporate Development Course

1983

1993

1996

Establishment of the Company

Successful listing of A-shares in Shenzhen

1997

Successful listing of B-shares in Shenzhen

Award of "China Well-Known Trademark"

2015

2011

2016

Launch of the "Zhihuijia Ecosystem" and investment in a Indonesia manufacturing base

Acquisition of Changhong Ridian

2009

Investment in a production base in Pakistan for refrigerator project development

Acquisition of Changhong Air Conditioner and Zhongshan Changhong

2017

M-Fresh Refrigerator recognized with two world records

2018

Investment of RMB 400 million in construction of the Meiling Hefei Washing Machine Intelligent Industrial Park

2019

2020

Launch of the industry's first fullythin refrigerator

2022

Establishment of a subsidiary for home appliances

2023

Successful listing of Zhongke Meiling on the Beijing Stock Exchange

Release of the new brand proposition: "Beautiful China, Fresh Meiling"

2002

Joint investment with the Technical Institute of Physics and Chemistry CAS to establish Zhongke Meiling

2005

Strategic restructuring with Sichuan Changhong Electric Co., Ltd.

2024

Launch of the "Blue Oxygen Hand-Wash Like" washing machine and the first Zhihuijia AI large model

Meiling 2025 Milestones

April 2025

The Company was successfully selected for the first batch of China's Consumer Premium Brand announced by the Ministry of Industry and Information Technology of the People's Republic of China.

June 2025

July 2025

The Company globally launched the new AI refrigerator product, Frozen Fresh 505, introducing the concept of "freshness defined by technology rather than environment." This launch marked a technological breakthrough that subverted traditional preservation logic, empowering AI to redefine freshness standards.

A subsidiary, Mianyang Changhong Smart Home Appliance Co., Ltd., was established to invest in and construct a washing machine project with an annual single-shift production capacity of one million units.

The Six Sigma Green Belt project of Changhong Air Conditioner was recognized as a "Professionallevel Achievement" in China's national quality appraisal.

Changhong Meiling officially launched the industry-disruptive product – the M-Fresh Ultra 502F Refrigerator, applying "rose-grade freshness preservation" technology to reshape industry standards.

The Shanshuijian EA Series new products of Changhong Air Conditioner were officially launched, creating an indoor "micro-climate close to natural mountain-and-water conditions and delivering an integrated air solution featuring "constant temperature, humidity, oxygen, cleanliness and quietness," thereby advancing air conditioners from standalone temperaturecontrol devices to comprehensive air environment management platforms.

The Hand-Wash Like · White Whale drum washing machine was officially launched. Its "Hand-Wash Like" redefines industry cleanliness standards, establishing another milestone in the field of fabric care and opening a new chapter for Changhong Meiling's washing appliance division.

December 2025

The Company held a new freezer product launch event themed "The Power Combination, Peak Debut," unveiling two new freezer products: "Inverter Energy-Saving King" and "Inverter Frost-Free King."

ESG Management

In response to sustainable development trends and in compliance with national laws, regulations and governance requirements for listed companies, Changhong Meiling formulated a clear sustainability strategy. This involved systematically enhancing its ESG management system, conducting a materiality assessment, and deeply integrating ESG principles into its corporate governance.

Sustainability Strategy

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

Sustainability Governance

Governance Structure

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

Institutional Mechanism

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

Capability Enhancement

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

Risk Management

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

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

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

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

Risks related to incremental business: Comprehensive contingency plans and response strategies are formulated, with phased implementation schedules and execution requirements clearly defined. Compliance and Risk Control Departments convene regular meetings to solicit views from functional management departments and risk decision-making bodies.

Risks related to existing business: Major risks are assessed and response proposals are developed, with clear objectives for risk resolution, organizational leadership, managemen processes, resource support, and specific response measures.

The Company has established sustainability objectives and a quantitative indicator system. For the framework design, implementation pathways, and phased achievements of relevant targets and indicators, please refer to the respective chapters on material topics in this Report.

Materiality Assessment

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

Changhong Meiling Dual Materiality Matrix

Changhong Meiling 2025 Dual Material Topics List

Due Diligence and Stakeholder Communication

The Company conducted on-site due diligence with stakeholders including heads of departments and key employees, Company suppliers, and shareholders. Background research was carried out on the sustainability context of the regions where the Company operates, industry characteristics, and the full product lifecycle. The Company conducted in-depth analysis of local policy guidance documents, industry standards and regulatory requirements, topic lists and weighting methodologies adopted by internationall recognized ESG rating agencies, and ESG reports of peer companies, with a focus on key factors that may afect ESG topic selection as well as associated risks and opportunities. Through online questionnaires, the Company collected views from internal stakeholders regarding financial materiality and from external stakeholders regarding impact materiality, in order to ensure the comprehensiveness and accuracy of ESG topic identification.

Stakeholder		Expectations and Demands	Communication and Response
	Government	Risk & internal controlAnti-fraud measures	Risk screeningComplaint mechanism
	Customer	Service qualityProtect customer rights and interests	Ensure service standardsImprove service quality
	Employee	Compensation and benefits protectionPromotion mechanismsEmployee growth and developmentEmployee caring	Improving compensation and benefits systemsOptimizing career development pathwaysEnriching diversified employee trainingEmployee care initiatives and cultural activities
	Community	Rural revitalizationSupporting public welfare initiatives	Implementing assistance programsActively participating in charitable activities
	Partners	Operational complianceCompliance with business ethicsSupply chain management	Performance of contracts and agreements in accordance with lawTransparent and fair business principlesFull lifecycle management of suppliers
	Investors	Accurate information disclosureCommunication with investorsEnhanced ESG performance	Sufficient information disclosureDiversified communication channelsElevate ESG management capability

Ensuring Compliance Cultivating Responsible Business

Changhong Meiling strictly complies with applicable laws, regulations, and listed company governance requirements, and continuously improves its corporate governance framework while strengthening tax, compliance, and risk management. Guided by the principles of integrity and fairness, the Company fosters a sound market environment and creates long-term value for shareholders through high-quality development.

Improvement of Company Governance

The Company has established a governance system centered on the General Meeting of Shareholders, Board of Directors, and Management, in accordance with relevant laws and regulations such as the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Code of Corporate Governance for Listed Companies, the Shenzhen Stock Exchange Listing Rules, and internal regulations including the Company's Articles of Association, the Independent Director System, and the Board of Directors Rules of Procedure. To strengthen governance effectiveness, the Company has formulated a detailed delegation-of-authority manual and implemented differentiated authorization management for subsidiaries, with clearly defined approval procedures and authority limits, enabling scientific, rational, and eficient subsidiary management. At the same time, the Company has established and continuously refined a scientific, fair, and transparent performance evaluation system and incentive restraint mechanism for directors and senior management. We continuously enhance the governance framework, improve the leve of standardized operations, and strengthen policy enforcement to ensure the General Meeting of Shareholders, the Board of Directors, and the Management perform their respective duties efectively, maintain checks and balances, and enable sound decision-making thereby safeguarding the Company's high-quality development.

The Company promotes the development of board diversity policies, the selection and appointment of Company directors strictly prioritize compliance as the premise, professionalism as the core, and role suitability as the guiding principle. Multiple factors are comprehensively considered, including basic qualifications, professional competence, ethical standards, structural compliance, and industry experience, actively building a diverse, complementary, balanced, and inclusive Board team. Establish a scientific evaluation mechanism to conduct regular assessments of Board members, ensure that they devote suficient time and energy to the Company's afairs, and guarantee the efectiveness of their performance of duties.

In 2025, the size and composition of the Board fully complied with applicable laws, regulations, and the Articles of Association. The Board maintained a standardized governance structure and diversified composition, effectively safeguarding scientific decisionmaking and governance efectiveness.

Number of Company Directors

Number of Independent Directors

Number of Female Directors 3

Percentage of Independent Directors on the Board 33.33_%

Proportion of female directors 22.22_%

Number of Female Senior Management Personnel

Percentage of Female Senior Management Personnel 28.57_%

The General Meeting of Shareholders is the Company's highest authority and is responsible for reviewing and approving major corporate matters.

The Board of Directors is accountable to the General Meeting of Shareholders and serves as the Company's decision-making body. It is responsible for implementing resolutions of the General Meeting of Shareholders, formulating business plans and investment proposals, among other duties.

Building a Robust Risk Control Defense Line

Changhong Meiling consistently adheres to integrity-based operations and maintains compliance as a core business principle. Compliance concepts are integrated into all aspects of operations and management through continuous improvement of compliance operating mechanisms, stronger compliance risk prevention, enhanced compliance review procedures, and deeper development of compliance culture, thereby promoting high-quality corporate development through eficient compliance management

Compliance Management

Governance Related to Compliance Operations

The Company has established a comprehensive compliance management system, including the Basic Compliance and Risk Control Management System, the Measures for Compliance Review Management, the Detailed Rules for Compliance and Risk Control Work, the Standards for the Internal Control System, the Measures for the Management of Compliance and Risk Control Administrators, and the Measures for Investigating Liability for Non-compliant Business Operations and Investments. These systems form an institutional framework covering key areas such as investment, operations, risk control, and human resources, ensuring that compliance requirement are embedded throughout all operational processes.

The Company has established a Compliance and Risk Control Committee, composed primarily of senior executives and management members. Under this structure, a Compliance Leadership Group serves as the decision-making core, primarily responsible for reviewing and deploying strategic plans and objectives for compliance and risk control work, and coordinating solutions for key and dificult issues in the compliance management domain. A Compliance Committee Ofice is set up as the executive center, focusing on the day-to-day management of compliance and risk control to ensure the precise implementation of all compliance requirements and the continuous optimization of the compliance management organizational system. Annually, the Company conducts comprehensive risk identification across strategic, financial, compliance, market, operational, and legal domains. Using a risk assessment model, risks are categorized into three levels—low, medium, and high—resulting in a risk identification list that clarifies responsible persons and units for risk events Regular reviews are organized.

Strategy Related to Compliant Operations

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

Management of Impacts, Risks and Opportunities Related to Compliance Operation

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

decision-making on significant matters, execution of major contracts, operation of key projects, large-value procurement and sales, and management of substantial funds. The Company conducts compliance training and awareness programs, requires all employees to sign compliance commitment letters, and continuously strengthens the legal mindset, compliance awareness, and legal/compliance execution capabilities of both staff and compliance personnel, effectively advancing compliance initiatives.

Indicators and Targets Related to Compliance Operation

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

2025, the Company

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

Internal Control

In accordance with the Basic Standards for Enterprise Internal Control and relevant governmental policy directives, the Company has formulated various internal control systems, including the Basic Compliance and Risk Control Management System, the Measures for Compliance Review Management, the Standards for the Internal Control System, and the Risk Management Policy. These documents define internal control governance bodies, division of responsibilities, management principles, operational requirements, and procedural arrangements. The Company's internal control system consists of the Board of Directors (providing guidance and evaluating internal control efectiveness), the Compliance and Risk Control Department (the primary responsible department), the Audit Department (the department organizing internal control evaluations), and various functional departments (departments responsible for implementing and executing internal controls). Internal control audits are conducted at both internal and external levels, encompassing comprehensive audits and inspections across areas such as production and warehousing, procurement and payments, sales and receivables, research and development, and capital and investment. For key domains—including tender-based procurement, financial management, personnel management, service management, and safety management—as well as for high-risk business activities, specific operational policies or specialized guidelines have been established to strengthen internal control. A contract review mechanism has been implemented, supported by a contract management system, to efectively monitor the signing and fulfillment of contracts and prevent disputes or inadequate performance. Monthly screening for significant risks is conducted, with remediation measures formulated and advanced monthly for identified risk issues. The Company places high importance on the development of financial internal controls, establishing a system centered on accounting control and management control. The Internal Audit Management System has been formulated to provide an institutional foundation for internal audit work, ensuring th efective execution of the Company's internal control procedures. Tax management policies such as the Measures for Value-Added Tax Invoice Management and the Measures for the Management of Pre-Tax Deduction Vouchers for Corporate Income Tax have been established, promoting the digital transformation of tax management to mitigate tax-related risks.

The Company earnestly fulfills its tax obligations, declares tax information in a timely and accurate manner, conducts tax declaration and tax payment in an orderly manner, and voluntarily accepts tax inspections. For many years, the Company's tax credit rating has been rated as Class A by the tax authorities.

Ensuring Information Transparency

Changhong Meiling has established and refined mechanisms to protect investors' rights and interests. We proactively build communication bridges with investors, respond promptly to their concerns, and communicate the Company's value. Our compliant information disclosure practices enhance investors' understanding and recognition of the Company. We continuously improve investor relations management to build and maintain a positive image in the capital markets.

Protection of Investors' Rights and Interests

The Company maintains a complete business system and independent operational capabilities. It operates independently from its actual controller and controlling shareholders in terms of business operations, personnel, assets, Organizational structure, and finance. The Company implements a continuous, stable, and transparent profit distribution policy. While balancing the Company's long-term interests and sustainable development, it emphasizes providing reasonable returns to investors. In accordance with the Company's Articles of Association and the Shareholder Return Plan for the Next Three Years (2024-2026), profit distribution is conducted under the premise that the Company's profitability and cash flow support normal operations and long-term development, thereby safeguarding investors' rights and interests. In any single fiscal year, the total cash dividends to be distributed (including any interim cash dividends) shall be no less than 15% of the distributable profits of the listed company's parent entity for that year, but shall not exceed the lower of the distributable profits presented in the parent company financial statements and the consolidated financial statements.

Based on confidence in the Company's development prospects and recognition of its value, during the reporting period, the Company implemented a share repurchase to enhance investor returns and market confidence. A repurchase plan was formulated and executed for A-share repurchase, with a total repurchase amount ranging from RMB 150 million (inclusive) to RMB 300 million (inclusive). The repurchased shares are intended for implementing equity incentive plans, aiming to strengthen investor confidence, improve shareholder returns, further improve the Company's long-term incentive mechanism, and promote the Company's sustained, stable, and healthy development.

2024 Annual Profit Distribution Amount RMB 339.8748 million

Percentage of Net Profit Attributable to Shareholders of the Listed Company Distributed

48.60%

Number of Shares Repurchased During the Reporting Period

12,487,901 shares

Percentage of Repurchased Shares to Total Share Capital During the Reporting Period

1.2125%

Investor Relations Management

The Company has established policies including the Investor Relations Management Policy, the Reception and Promotion Work Policy, and the Brand Crisis Early Warning Management Regulations, diligently carrying out all aspects of investor relations management. We engage with investors through various channels such as the Shenzhen Stock Exchange's "Interactive Easy" platform, hotline, email institutional research meetings, brokerage strategy conferences, reverse roadshows, and earnings briefings. We actively listen t investors' opinions and suggestions to deepen communication. The Company strengthens public sentiment management through proactive monitoring, real-time handling, and post-event follow-up, providing appropriate responses promptly to guide positiv discourse and efectively prevent and properly manage reputational risks

2025, the Company

Number of Investor Inquiries Responded to via the "Interactive Easy" Platform

Earnings Briefings Held

Investor Reception Sessions 20 times

Investor Hotline Calls Answered 674 times

106 person-times

Enhancing Information Disclosure

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

of Listed Companies, the Company standardizes internal procedures fo r r e p o r t i n g , t ra n s m i tt i n g , a n d confidentiality procedures for major i n fo r m a t i o n , st r i c t l y co n t ro l l e d the scope of informed persons, and effectively prevented risks of information leakage. In 2025, the Company cumulatively disclosed 93 announcements and related documents. No incidents of insider information leakage or violations of information disclosure occurred during the reporting period, efectively safeguarding the legitimate rights and interests of the Company and its stakeholders.

Adhering to Business Ethics

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

Anti-Corruption Management

The Company attaches great importance to the prevention and control of risks related to commercial bribery, corruption, fraud, and integrity compliance. It has formulated systems including the Management Provisions on Anti-Corruption, Anti-Bribery and Anti-Fraud, the Contract Management System, and the Trademark Management System, embedding integrity requirements into core processes such as procurement and bidding, supplier admission, and channel development authorization. The Company has established a leadership group for anti-commercial bribery and anti-corruption/fraud management, with senior management serving as the core decision-making body for specialized management. At the same time, the Compliance and Risk Control Department has been designated as the department responsible for daily implementation and advancement of related work, tracking rectification progress and efectiveness throughout the process to ensure closed-loop risk prevention and control management. The Company organized management personnel and employees in key positions to sign the Integrity Undertakings, conducted one-on-one integrity interviews with newly appointed management personnel and employees in key positions, and provided thematic training on anti-corruption laws and regulations for management personnel and employees in important positions. In addition, the Company organized warning education activities, including the study of typical corruption cases and visits to integrity warning education bases, in order to foster a sound environment for integrity compliance. The Company also carried out accountability assessments in strict accordance with the Special Rectification Plan for Integrity Work and the Implementation Measures for Accountability for Illegal Operation and Investment, promptly addressing loopholes in operational management. Furthermore, integrity clauses were incorporated into anti-corruption management policies, procurement contracts, and distributor agreements, or separate integrity cooperation agreements were signed with business partners, clearly specifying integrity obligations, breach liabilities, and reporting channels, thereby continuousl improving the Company's operational and management standards.

In 2025, a total of 3,367 employees participated in anti-commercial bribery and anti-corruption training, representing 74% of all employees. Neither the Company nor its employees were involved in any corruption, bribery, or fraud cases concluded by or under trial in court. No employees were dismissed or subject to disciplinary action due to corruption, and no contracts with business partners were terminated or not renewed as a result of corruption-related incidents.

Whistleblower Protection

Changhong Meiling has formulated the Measures for Petition and Reporting Management, which clearly stipulate reporting channels, reporting methods, and whistleblower protection measures. Multiple public reporting channels have been established, including a reporting hotline, disciplinary inspection email, and reporting mailbox. Whistleblowers may submit complaints or reports anonymously, fundamentally preventing the disclosure of whistleblower information. All reporting channel terminals are directly managed by the Company's disciplinary inspection office, thereby reducing the risk of information leakage.

For individuals making real-name reports and providing valid evidence, the Company adopts strict confidentiality measures and strictly prohibits any form of suppression or retaliation. Personnel responsible for violating confidentiality requirements will be subject to strict and severe disciplinary action. In addition, the Company has established a whistleblower reward mechanism, under which effective whistleblowers are commended and rewarded, in order to encourage employee participation and jointly safeguard the Company's integrity image.

Mobile OA Communication QQ Group 539027\*\*\*

Reporting Hotline 0551-62219043

Reporting Email chmljiwei@meiling.com

Anti-unfair Competition

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

r i s k m a n a g e m e n t m e c h a n i s m , systematically standardizing antimonopoly and fair competition risk control. Based on industr y characteristics and business models, the Company identified potential compliance risk points, rejected clauses violating fair competition p r i n c i p l e s , a n d o p p o s e d p r i ce monopoly provisions. In 2025, the Company did not experience any litigation or major administrative p e n a l t i e s a r i s i n g f r o m u n fa i r competition practices.

Advancing Smart Manufacturing Renewing Better Services

Changhong Meiling adheres to fundamental principles while pursuing innovation, guided by the orientation of "pursuing innovation, advancing intelligence, and improving quality." The Company integrates technological innovation throughout the entire development process, continuously tackling core technological bottlenecks; deepens the upgrading of intelligent and digital manufacturing, empowering production efficiency and process improvement through smart manufacturing; strictly controls product quality to consolidate the foundation for development with high-quality products; and upgrades its customer service system to enhance user experience through considerate full process services, thereby creating a new corporate benchmark for China's home appliance industry.

Stimulating Innovation Vitality

Changhong Meiling regards technological innovation as a core strategy and concentrates on integrating scientific and technologica innovation resources. The Company continuously improves R&D innovation incentive measures from multiple dimensions, including system construction, platform support, and talent assurance, while promoting the efficient transformation and application of innovation achievements, strengthening full-chain intellectual property protection, improving the technology ethics governance system, and comprehensively driving technological and product innovation upgrades to consolidate the scientific and technologica foundation for high-quality development.

Governance Related to Innovation-Driven

The Company attaches great importance to and continuously strengthens its R&D innovation system by establishing a technological R&D structure composed of the User and Product Development Center, Innovation Design Center, and Testing and Experimental Center. The senior management shall be responsible for research and development and innovation management, and leverage a dualdriven model of "independent R&D + collaborative innovation," the Company conducts innovation research across multiple fields and continuously expands the boundaries of technological application.

The Company has established and improved an internal management system for technological innovation and implemented innovation management regulations including the Product Design and Development Control Procedure, the Technical Innovation Project Management Provisions, the Product Development Project Management Measures, the Enterprise Technical Standardization Management Provisions, and the Annual Incentive Plan for Standards and Norms.

Strategy Related to Innovation-Driven

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

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

Changhong Meiling consistently adheres to an innovation-driven development strategy and has established and continuousl improved a risk identification, assessment, and response mechanism in the field of innovation. The Company has embedded opportunity assessment and risk management related to innovation-driven development throughout its overall internal control and risk management system, ensuring that its strategic planning and operational decision-making can effectively seize opportunities arising from industry transformation, properly address various risks brought by technological iteration and market competition, and safeguard stable operation and sustainable development

Innovation System Layout

The Company continuously strengthens the construction of its R&D innovation system by establishing an innovation model of "talent + platform + mechanism." It actively attracts and cultivates innovative talent, builds innovation platforms, optimizes incentive mechanisms, consolidates the four foundational pillars: team, technology, platform, and product. The Company deepens industry university-research cooperation, promotes collaborative R&D across the industrial chain, and advances the IPD process to accelerate the transformation of technological innovation into practical products. In 2025, the Company possessed 3 national-level, 9 provincial ministerial-level, and 6 municipal-level scientific research and technology service platforms

Innovation Achievements Application

Leveraging its strong industrial technology foundation and professional expertise, Changhong Meiling continuously promotes the industrialization of scientific and technological achievements in line with its actual development needs and technology application directions, creating diversified value for users and injecting innovative momentum into the high-quality development of the industry.

Innovation achievements

T h e h u m a n - s e n s i n g a i r c o n d i t i o n e r j o i n t l y developed by Changhong Air Conditioner and higher e d u c a t i o n i n s t i t u t i o n s received certification from China Household Electric A p p l i a n ce s R e s e a r c h Institute.

The Company innovatively applied Changhong Meiling's AI self-optimization technology and globally launched the new AI refrigerator product "Frozen Fresh 505."

Honors and Awards

Refrigerator and Freezer Products

The Company upgraded and launched air conditioner series including "Living & Dining Room Pro" and "Super Energy Saving Pro," continuously pushing the boundaries of product performance.

Air Conditioner Products

The Company launched an intelligent full-scenario vaccine solution and successfully delivered the fully air-cooled lowtemperature storage unit with frost-free defrosting technology.

Biomedical Sector

Washing Machine Products

The Company launched the "Hand-Wash Like · White Whale" drum washing machine, redefining industry cleanliness standards.

Kitchen Appliances and Small Household Appliances

The Company developed core technology for multi-chamber direct-injection high-firepower gas stoves, which has been successfully applied in five end products.

Intellectual Property Protection

Changhong Meiling has established intellectual property management systems including the Special Trademark Authorization Management Provisions, the Detailed Rules for Trademark Management System Implementation, the Trademark Management System, and the Project Management Measures, clearly defining requirements for the creation, application, protection, and management of intellectual property at every stage, and controlling product infringement risks from the project source. The Company encourages active employee innovation, provides timely patent incentives for generated patents, actively promotes patent transformation and product application, and encourages intellectual property creation to maximize intellectual property value. During the reporting period, the Company did not experience any infringement litigation.

Science and Technology Ethics Governance

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

Indicators and Targets Related to Innovation-Driven

In 2025, the Company recorded

R&D investment of RMB 96,753.67million

3,776 valid patents

1,705 invention patents applied in core business operations

224 software copyrights

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

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

Accelerating Intelligent Transformation

Guided by its "data strategy," Changhong Meiling focuses on the goals of "comprehensive digitalization" and "comprehensive intelligence," deepening the establishment of intelligent digital management systems and advancing digital infrastructure implementation. The Company promotes the deep integration and innovative application of next-generation information technology with manufacturing, driving digital transformation and data business restructuring.

Digital Operational Management

Changhong Meiling has deeply applied next-generation information technologies such as AI and big data. Based on the stable operation of systems including ERP SCP, WMS, and PLM, and supported by the Doris data warehouse and BI platform, the Company has established a unified big-data intelligent decision-making service platform. This platform enables: real-time monitoring of key indicators such as accounts receivable and cash flow; intelligent early warning of operational risks; formation of a "data-driven" financial governance model covering the full value chain, supporting precise decision-making and continuous cost reduction. The Company has also achieved: automatic generation of core operational reports on a T+1 basis; near real-time updating of key indicators; and panoramic operational insight capabilities.

Digital Transformation Development

In response to the characteristics and challenges of the home appliance industry, Changhong Meiling adheres to an operational philosophy of innovation-driven development, internal-external integration, industria collaboration, marketing specialization, and digital specialization. Centered on users, the Company advances along three paths: digita support for business operations; digital value creation; and digital-driven innovation. This enables digitalization of core business processes, digita empowerment of business and products, and effective implementation of the Company's digital transformation strategy. In 2025, the Company was recognized as a provincial benchmark enterprise for integrated development of advanced manufacturing and modern service industries; the project "Promoting Smart Supply Chain Transformation and Upgrading Based on 5G + Industrial Internet Technology" was selected for the 2025 Typical Cases of Manufacturing Digital Transformation.

Honors and Awards

Two Changhong Meiling cases were recognized by China Association for Mechatronics Technology and Application as Typical AI Application Scenarios.

Using an intelligent transaction platform as the hub, the Company launched the unified business portal "Xinhongye APP" and upgraded the user-side smart home application, further deepening the "C+3 customer order model." AI tools are systematically applied for scenario-based marketing and user acquisition, building a digital marketing system.

Based on the IPD (Integrated Product Development) project management system, the Company promoted the launch of a new product trial production control system, forming an integrated digital R&D and manufacturing system with: IPD as the framework; a collaborative platform as the linkage mechanism; trial production and asset management systems as support

Through deep application of the MES system and industrial big data platform, the Company promoted deployment of the DQS digital quality management system and the carbon asset full life-cycle management platform. This forms a digital transformation matrix covering production operations, quality control, and carbon asset management.

Pursuing Excellence in Quality

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

Product Quality Assurance

Governance Related to Product and Service Safety and Quality

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

Strategy Related to Product and Service Safety and Quality

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

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

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

Honors and Awards

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

Changhong Meiling was recognized by the China Association for Quality Inspection as the "National Product and Service Quality Integrity Commitment Enterprise"

Indicators and Targets Related to Product and Service Safety and Quality

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

Product Recall Management

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

Product Accessibility Enhancement

The Company accurately responds to consumers' growing demands for enhanced interaction experience and personalized functionality by integrating accessibility requirements throughout the entire process of product planning, design, manufacturing, and service. Continuous improvements include: optimization of product operation interfaces and functional settings; simplification of control logic; enhancement of human–machine interaction interfaces; improved readability and comprehensibility of produc instructions. These measures lower usage barriers for users of diferent age groups and varying levels of product experience, improving suitability for elderly users, first-time purchasers, and family users.

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

For Elderly Users

Based on intelligent products across refrigerators, air conditioners, and washing machines, the Company designed a "three-capability integrated care service" featuring conversational interaction, reminder functions, and emergency alarm functions. Elderly users can operate appliances through voice commands. Home appliance systems can provide scheduled reminders for daily activities. In emergency situations such as falls, users can simply say "help me call the police", enabling remote notification to family members and activation of monitoring functions, thereby providing enhanced safety protection.

For Maternal and Infant Users

The Company has developed a "Triple Assurance" service suite for maternal and infants, encompassing "Worry-Free Play, Effortless Control, and Safe & Restful Sleep." Parents can remotely monitor their children via mobile devices and utilize cross-category smart controls—such as soothing a crying child through connected appliances or operating the air conditioner via voice commands that require no vocal response—to prevent startling sleeping infants and mitigate safety risks from accidental contact.

Building Service Excellence

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

Customer Service Management

The Company strictly complies with national laws and regulations such as the Law of the People's Republic of China on the Protection of Consumer Rights and Interests and the Product Quality Law of the People's Republic of China. It has revised and issued core institutional policies including the Quality Management Measures for Refrigeration and Washing Services, and established a standardized documentation system including the On-site Service Operation Standards and the Spare Parts Management Guidelines. Through Service Outsourcing Agreements signed with service providers containing strict quality clauses, the Company ensures consistent internal and external service standards. The Company has established specialized departments such as sales to be responsible for customer management. A nationwide grid-based service network enables digital tracking and management of service nodes, standardizes service procedures, and facilitates full scenario customer access through internet platforms

The Company has established a full-process after-sales service management system, covering rapid response through closed-loop improvement. Based on the Customer Complaint Management Measures, a unified complaint collection and hierarchical processing platform has been built, forming a standardized process of "response → assessment → resolution → improvement." The Company has also launched the ISRM intelligent customer service system, powered by large-model AI and a localized knowledge base, significantly improving service eficiency and customer experience. In 2025, the after-sales service complaint resolution rate reached 100%

Responsible Marketing

The Company strictly complies with legal requirements including the Advertising Law of the People's Republic of China and the Anti-Unfair Competition Law of the People's Republic of China. It has formulated the Price Management Measures and established a Pricing Committee to conduct unified supervision and control over product pricing and channel pricing, preventing price disorder and unfair competition. The Company has also established a strict review mechanism to ensure compliance examination of media publicity and promotional information. Regular training and communication on responsible marketing are carried out, and the Company actively participates in special compliance training and self-inspection programs for emerging business formats organized by regulatory authorities. In addition, the Company strictly implements a customer visit system, maintaining regular and efective communication with distribution channels and end customers, to ensure that all marketing activities are conducted on the basis of truthfulness accuracy, and respect for consumers. The Company strictly prohibits dissemination of misleading information regarding competing products and avoids any exaggerated claims concerning environmental or social benefits.

Service Experience Enhancement

The Company has established a multi-dimensional and normalized customer satisfaction survey system covering end users, distributors, and service providers. Through scientific data collection and analysis, the Company identifies service shortcomings and potential customer needs, and continuously improves services based on real feedback, thereby enhancing overall customer satisfaction. In 2025, overall satisfaction of end users reached 97.95%; overall distributor satisfaction reached 98.06%; overall service provider satisfaction reached 98.49%.

Data Security and Customer Privacy Protection

The Company strictly adheres to the information security management principles of "appropriate security, focused protection, integration of technology and management, and zoning by area" and "prevention first, graded accountability," systematically planning . It has established the Information Security and Confidentiality Committee and the Information Security and Confidentiality Office, responsible for formulating the overall information security policies and strategic planning. The Company strictly complies with the Cybersecurity Law of the People's Republic of China, the Data Security Law of the People's Republic of China, and other relevant laws and regulations and has developed information security management systems, including the Information Security and Confidentiality Management Regulations, the Computer Equipment Management Regulations, and the Key Business Information Systems and Master Data Management Regulations. The Company has planned and constructed network security protection systems, including the industrial internet security architecture, network and information security platforms, local cross-platform application-level disaster recover systems, and ofsite disaster recovery systems for core data. Desktop terminal data security protection systems and cloud desktop management controls have been deployed. Comprehensive technical measures, such as encryption, identity authentication, and access authorization, are applied to ensure the security and availability of classified information throughout its full lifecycle. Employee training and confidentiality management are reinforced through confidentiality agreements and cybersecurity responsibilit agreements, enhancing employee security awareness and ensuring the safe and stable operation of information systems. In 2025, th Company proactively completed the classification and grading management of industrial internet enterprise cybersecurity as required by the Ministry of Industry and Information Technology and passed the MLPS 2.0 (Multi-Level Protection Scheme 2.0) assessment ensuring that the security management system meets the highest national standards.

The Company strictly observes the principles of "lawful, legitimate, and necessary" and "least privilege" in constructing a rigorou customer privacy protection management system in accordance with the Personal Information Protection Law of the People's Republic of China. The Company has improved its management mechanism by formulating systems including the Cybersecurity Management Measures and the Notice on Regulating the Use of Confidentiality Markings for China Region Documents. It has incorporated requirements for data security and privacy protection into the performance appraisal system of relevant positions, and regularly conducts data privacy and security training. Multiple technical measures such as data encryption, access control and regular auditing have been adopted to implement full life-cycle data management in an all-round way, and the Company has conducted audit and management over the entire process of critical data protection, including prior, during and subsequent stages, so as to prevent dat abuse or exposure during authorized access to sensitive data. Strict non-disclosure agreements have been signed with third parties including suppliers and other business partners to ensure information security throughout its full life cycle. A three-tier emergency response mechanism for customer privacy incidents has been established, defining responsibilities and handling procedures at all levels. In the event of any information leakage risk, emergency procedures are immediately activated and accountability is strictly enforced to ensure timely containment of any loss. In 2025, the Company strictly executed full-process controls, and no incidents of customer privacy information leakage occurred throughout the year.

Driving Green and Low-Carbon Development Protecting Our Ecosystem

Changhong Meiling remains committed to green development and actively fulfills its corporate ecological responsibilities. The Company focuses on four key areas: climate change response, environmental compliance management, resource circularity, and green production operations. Through continuous optimization of environmental practices across the entire operational chain, Changhong Meiling promotes the harmonious coexistence of corporate development and ecological protection. By taking practical actions, the Company fulfills its sustainability mission and safeguards a healthy ecological environment.

Combat with Climate Change

Climate-Related Governance

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

Dual Carbon Management Committee

Dual Carbon Working Group

Company Departments

Dual Carbon Management Ofice

Daily Management and Promotion of Dual Carbon Project

Research on Low-Carbon Basic Technologies

Changhong Meiling Climate Governance Structure

Detailed Climate Governance Responsibilities

Dual Carbon Management Committee

Formulates the Company's dual-carbon targets and implementation plans. Provides guidance and resources to support the Working Group's progress. Supervises and evaluates the advancement of dual-carbon initiatives and makes decisions on critical matters.

Dual Carbon Working Group

Develops assessment plans for dual-carbon projects and establishes corresponding incentive and penalty mechanisms. Coordinates carbon emission management across departments, sets departmental reduction targets and plans, promotes the implementation of carbon reduction projects and the adoption of carbon reduction technologies. Reports regularly to the Management Committee on project progress.

Dual Carbon Management Ofice

Oversees the full lifecycle management of dual-carbon projects, including planning, schedule control, and quality management. Organizes coordination among relevant departments. Assists in supervising the progress of dual carbon work, evaluates project implementation efectiveness, and reports regularly to the Management Committee.

Company Departments

Strictly implement assigned responsibilities and execute dual carbon projects at the operational level.

Climate-Related Strategy

Climate Scenario Analysis and Adaptation Assessment

The Company refers to the climate scenario models in the Intergovernmental Panel on Climate Change Sixth Assessment Report (AR6 and, in combination with changes in the external ecological, economic, and social operating environment, selected the SSP5-8.5 and SSP1-2.6 pathways to conduct climate scenario analysis. A standardized process has been established covering: determining the scope of climate-related scenario analysis; selecting climate-related scenarios; identifying variables used in scenario analysis; determining analytical methodologies; conducting climate-related scenario analysis. Through this process, the Company identifies potential business risks and opportunities, formulates climate response strategies, and ensures that operations remain aligned with the globa climate transition.

Climate-related Risks and Opportunities

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

Climate-Related Impact, Risk and Opportunity Management

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

Management Process

① Background analysis of the subject matter

Review the Company's business activities, business linkages, and external development environment to identify stakeholders afected by climate change and their relevant concerns.

② Identification of risks and opportunities

Conduct analysis based on the dual climate scenarios of SSP5-8.5 and SSP1-2.6 to identify climate-related impacts, risks and opportunities under diferent scenarios, and assess the gap between climate-related targets and the current state of operations.

③ Risk assessment and prioritization

Carry out a comprehensive assessment of identified climate-related risks and rank them by level of impact.

④ Formulation of response measures

Relevant responsible departments carry out targeted risk management, formulate dedicated response plans, and submit them to the dual carbon management committee for review.

⑤ Dynamic monitoring and management

The dual carbon management committee regularly monitors the performance of key risk indicators and reports major climate-related risk matters to the Board of Directors on an annual basis.

⑥ Information disclosure and reporting

Regularly disclose externally the identification of climate-related risks and opportunities and the implementation of full-process management.

Decarbonization Pathway

① Product technology

② Production and manufacturing

Continue to advance R&D and innovation in energy-saving technologies, promote the iterative development of lowcarbon materials, and comprehensively expand the use of low-carbon and environmentally friendly packaging.

Implement energy-saving retrofits of production equipment to reduce consumption and improve eficiency, deepen the lean production model to enhance end-to-end operational eficiency, and establish and improve a refined energy management system covering all stages of production.

③ Carbon management and control system

④ Green energy

Build an enterpriselevel intelligent carbon emissions management platform and implement a product lifecycle carbon footprint accounting platform to enable carbon data to be monitored, measured and managed.

⑤ Supply chain system

Steadily advance the scaled application of purchased green electricity, deploy photovoltaic power generation systems to achieve self-supply of green electricity, and increase the proportion of green energy in production.

Work with upstream and downstream supply chain partners to carry out joint R&D on low-carbon materials and low-carbon technologies, promote the implementation and application of low-carbon technological achievements, and build a low-carbon development ecosystem across the supply chain.

Climate-Related Indicators and Targets

Changhong Meiling has set carbon emission targets to achieve carbon peak for its own operations by 2030 and carbon neutrality for its own operations by 2060. To ensure the achievement of these long-term goals, the Company has also established detailed annual interim emission targets, regularly reviews and tracks progress on climate goals, reduces carbon emission intensity year by year, and steadily advances emission reduction plans through measures such as energy-saving equipment retrofits, optimized production processes, development of low-carbon products, promotion of clean energy, and participation in green electricity trading

In 2025, the Company implemented decarbonization measures across multiple dimensions. From product design to supply chain, from production lines to ofice operations, energy-saving and carbon-reduction projects were comprehensively deployed. Particularly in equipment upgrades, the Company achieved notable results: the successful deployment of new energy-efficient equipment, including air-source temperature control machines, variable-frequency screw pumps, and variable-frequency motors, significantly reduced energy consumption during production and achieved dual breakthroughs in energy saving and carbon reduction. These solid practices not only optimized resource utilization efficiency through technological innovation but also further strengthened the Company's foundation for green development, efectively advancing its transition toward a green and low-carbon operating model.

Target Information

Scope 1 and Scope 2

Scope covered

Mainly includes natural gas, purchased electricity, and purchased steam

Direct emissions from diesel, wastewater treatment, fire extinguishing agents, and air-conditioning refrigerants are minor and not included in calculations

Applicable Entity Scop

For Scope 2 emissions, the market-based method is applied

Target Type Base Year

Includes refrigerator, freezer, washing machine produced at the Hefei base, as well as those from Mianyang Meiling and Jiangxi Meiling

Quantitative target\Intensity target

Target Year

6.176 tCO2e per RMB million of output value

5.106 tCO2e per RMB million of output value, representing a 17.32% reduction in greenhouse gas emissions per RMB million of output value

Reduction Target as % of Base Year (%)

100%

Reduction Target as % of Current Year (%)

100%

GHG emissions per million yuan of output value stood at 5.106 tCO2e, representing a year-on-yea Current Period Emissions decrease of 17.32%

Target Method

Independent Third-Party Verification

Not yet verified by an independent third party. The Company intends to consider verification through Science Based Targets initiative (SBTi) or other third-party organizations.

How the Target Is Achieved

Refer to climate-related impacts, risks and opportunities management/carbon reduction pathway.

For intensity targets, provide a description of the method used to calculate carbon intensity

Per RMB million of output value

For Scope 3 targets, provide a description of the method used to calculate Scope 3 emissions covered by the target

No Scope 3 emission targets have been established to date

Annual Greenhouse Gas Emissions

Note 1: Data cover Changhong Meiling headquarters, Mianyang Meiling, and Jiangxi Meiling Note 2: The year-on-year increase in direct GHG emissions (Scope 1) is due to approximately a 31% increase in washing machine production and the impact of in-house component recycling, resulting in higher natural gas consumption.

Note 3: Greenhouse gases primarily include Scope 1 and Scope 2 emissions, i.e., natural gas, purchased electricity, and purchased steam. (Direct emissions from diesel, wastewater treatment, fire extinguishing agents, and air-conditioning refrigerants are minor and not included in calculations.)

Note 4: In 2025, Hefei facilities procured 41 million kWh of green electricity, accounting for approximately 36.80% of total electricity consumption in Hefei base.

Note 5: The 2025 emission factors adopted are 0.5568 kgCO e/kWh for electricity, 110 kgCO e/GT for steam, and 1.8222 kgCO e/m³ for natural gas

Environmental Compliance Management

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

Environment Management System

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

regulations. The Company has established a three-tier environmental management system, with the Board of Directors as the decision-making tier, the Environmental Management Committee as the management tier, and the Environmental Protection Department and environmental officers in each production unit as the execution tier. The Company has also developed management systems, including the Environmental Management Manual, Environmental Compliance Evaluation Control Procedure, and Internal Environmental Reporting and Disclosure System, continuously enhancing environmental management and ensuring that institutional frameworks and operational guidance cover all aspects of operations. In 2025, the Company's total environmental protection investment amounted to RMB 10.3209 million. The Company and its seven manufacturing subsidiaries have all obtained ISO 14001 Environmental Management System certification. No major environmental incidents, regulatory violations, or environmental crimes (criminally punishable) occurred during the reporting period.

Environmental Risk Assessment and Response

Changhong Meiling strictly complies with the Emergency Response Law of the People's Republic of China and the National Emergency Response Plan for Environmental Emergencies, establishing an emergency management system centered on the “one plan with three supporting mechanisms" approach. According to internal environmental incident classification standards, the Company has set up an Emergency Command Headquarters for Environmental Emergencies led by the Company President. Specialized emergency teams are deployed for on-site response, emergency monitoring, logistics support, and information dissemination. The Company has prepared comprehensive plans, including the Comprehensive Emergency Response Plan for Environmental Emergencies, and established preventive measures covering hazard identification and inspection, emergency facility readiness, and emergency drills, ensuring timely and efective response throughout the entire process.

Environmental Risk Assessment Management Process

Environmental risks and opportunities are systematically identified through multiple channels, including regulatory scanning, lifecycle assessment, on-site inspections, supply chain audits, and stakeholder interviews.

A quantitative “Environmental Risk Map" is used to assess risks from three dimensions: probability, impact, and control effectiveness. High-risk points, such as chemical storage facilities, are subject to enhanced controls including dual-lock and dual-person protocols, real-time monitoring, and regular emergency drills.

The “Resilient Supply Chain" Green Partner Program is implemented, incorporating environmental compliance and carbon footprint performance into supplier admission and rating criteria. The program coordinates with upstream partners to address environmental risks and identify opportunities for green innovation.

Environmental Protection Training

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

Strengthening Pollution Prevention and Control

Governance Related to Pollution Prevention and Control

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

Strategy Related to Pollution Prevention and Control

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

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

The Company defines environmental risk levels and corresponding management processes, accurately identifying potential environmenta risks and opportunities. Additionally, scenario analysis is applied to evaluate the uncertainty of environmental pollution risks, assisting the Company in responding to potential future environmental changes and enhancing overall risk management capability

Optimized Management Process

The Company conducts full-process identification, assessment, prioritization, monitoring, and management of pollutant emissions impacts, risks, and opportunities. Each year, multiple methods are used to systematically identify emissions of wastewater, exhaust gas, solid waste (including hazardous waste), and noise across all operational stages. Potential environmental risks and green development opportunities are simultaneously evaluated. A combination of quantitative and qualitative analyses is used for multi-dimensional prioritization, with the graded control list dynamically updated. For key emission sources and risk points, continuous monitoring mechanisms are established to enforce environmental management requirements and ensure efective system operation

Waste Water Management

The Company's wastewater mainly includes production and domestic wastewater and adopts a rain-sewage separation system. After treatment, key parameters—suspended solids, chemical oxygen demand (COD), ammonia nitrogen, petroleum substances, biochemical oxygen demand (BOD), and pH—meet discharge standards. The Company has upgraded certain aged pipelines within the industrial park to enhance network reliability and optimized the operation of the comprehensive wastewater treatment station to continuously improve wastewater treatment eficiency.

Exhaust Gas Management

The Company's exhaust gas primarily originate from organized and unorganized volatile organic compounds (VOCs) in production processes, boiler combustion exhaust, and crushed particulate matter, among other sources. During the reporting period, the Company established its own monitoring plan, defining monitoring requirements and commissioning qualified external agencies to test organized emissions. All monitored air pollutants met regulatory emission standards. Additionally, the Company upgraded organic exhaust treatment facilities for washing machines, optimized treatment processes to improve removal eficiency, strengthened unorganized emissions control, including implementing air recovery and treatment in relevant areas. Some forklifts meeting China National Stage II standards were retired, and fuel-powered forklifts were replaced with electric forklifts, enhancing end-of-pipe exhaust control and reducing tailpipe pollution. Specialized training on exhaust gas management was conducted for personnel, covering equipment operation, maintenance, safety, and environmental regulations to enhance professional capabilities

Noise Control

The Company prioritizes noise management and implements multiple measures to reduce noise pollution. Noise-reducing enclosures are installed on major noise-generating equipment such as air compressors, fans, and pumps. Noise-reduction green belts are planted along factory walls and around sensitive areas. In addition, the Company adjusts the timing of certain high-noise operations and strengthens transport vehicle noise management. During the reporting period, factory boundary noise (day/night) complied with the Emission Standard for Industrial Enterprises' Environmental Noise at the Boundary.

Waste Management

The Company strictly complies with the Law of the People's Republic of China on the Prevention and Control of Environmenta Pollution by Solid Waste and the National Catalogue of Hazardous Wastes, implementing classification and management of genera and hazardous waste generated during operations. Dedicated storage areas are designated for solid waste, with clear labeling in place. Regular reporting, ledger maintenance, and standardized transfer procedures are conducted in accordance with regulatory requirements. New sludge drying machines have been installed to reduce sludge generation. Hazardous waste management follows internal regulations, including the Solid Waste Classification and Disposal Management Regulations and Hazardous Waste Emergency Response Plan, through which the Company develops specialized plans, maintains management ledgers, and implements clea temporary storage signage. Digital tools are utilized to enable real-time, full-process monitoring. Emergency disposal procedures are formulated to prevent leakage risks. Additionally, the Company cooperates with third-party institutions that hold appropriate disposa qualifications, which perform periodic on-site collection and standardized disposal.

In 2025, Changhong Meiling fully achieved the government-mandated annual total pollutant control targets for COD, ammonia nitrogen, and VOCs. Emission concentrations from all pollution sources remained consistently better than national and local discharge standards. Factory boundary noise compliance rates reached 100%, and monitored noise levels at sensitive points met functional area requirements. The lawful disposal rate of hazardous waste and general industrial solid waste reached 100%, successfully fulfilling the annual compliance target for solid waste management. No major environmental pollution incidents, mass incidents related to environmental issues, environmental penalties, complaints, or illegal dumping events occurred throughout the year.

From 2026 to 2028,the Company plans to benchmark against stricter international and domestic standards or state-of-the-art feasible technologies. Specific measures include consolidating multiple exhaust stacks in certain areas and adopting zeolite rotary wheel technology to further improve exhaust gas purification. Promoting sludge drying technology will serve as a key focus, with a gradual reduction in sludge generation as the core measure to achieve the "zero landfill" waste management goal and reduce waste generation.

Resource Recycling

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

Strengthening Energy Utilization

Governance Related to Energy Utilization

The Company has established an Energy Management Leading Group, under which the Office for Energy Saving and Emission Reduction operates. Key personnel from each department and workshop participate to ensure multi-level control. Energy-related laws, industry standards, and local regulations are regularly collected and updated. The Energy Management Regulations are compiled and revised as needed. Annual energy compliance evaluations and performance assessments are conducted, with clear focus on controlling major energy-consuming equipment, improving energy data collection and analysis, and implementing energy-saving process upgrades. In 2025, the Company obtained Energy Management System certification.

Strategies Related to Energy Utilization

The Company follows the energy management philosophy of “empowerment, stimulating internal potential, maximizing eficiency, and continuous cost reduction." Comprehensive and feasible energy management plans and implementation measures are developed. Each business unit is encouraged to fully leverage policy-based incentives and reform benefits, exploring energy-saving potential through management optimization, process improvements, and technological upgrades to continuously improve energ eficiency.

Impact, Risk, and Opportunity Management Related to Energy Utilization

Changhong Meiling attaches great importance to managing energy-related impacts, risks, and opportunities. The Company conducts detailed analyses of specific energy-consuming processes, operations, and equipment to identify risks and potential energy-saving opportunities. Key energy-intensive equipment and their energy eficiency factors are reviewed. Opportunities for energy performance improvement are determined based on technical feasibility, economic feasibility, and potential adverse impacts (safety, quality environment). Corresponding control measures and targets are developed, with continuous monitoring of implementation and efectiveness.

Energy Performance Improvement

The Company systematically identifies and manages risks and opportunities in the field of energy management. Specific energy consuming processes and equipment are analyzed to identify risks and energy-saving opportunities. Key energy-intensive equipment and energy eficiency factors are reviewed. Multidimensional analyses are used to determine performance improvement opportunities, control measures and targets are established, and implementation results are tracked to optimize energy management.

Energy Usage Monitoring

The Company's production and operations primarily consume purchased electricity, gasoline, diesel, natural gas, steam, and renewable energy. During the reporting period, the Company monitored similar energy-consuming equipment, calculated relevant parameters, and plotted energy consumption curves. Through benchmarking analysis, eficiency gaps were identified and corresponding improvement measures determined

Use Clean Energy

The Company continuously optimizes its energy structure and actively introduces renewable energy. The types of clean energy utilized mainly include rooftop photovoltaic systems and purchased green electricity. Distributed rooftop photovoltaic power stations were installed on the roofs of multiple buildings in ofice and residential areas, adopting a “self-consumption with surplus electricity fed into the grid" approach. At the same time, green electricity is procured on a large scale, with a significant proportion of total electricity consumption supplied by green energy, advancing practical green and low-carbon development. In 2025, the distributed roofto PV systems at Changhong Meiling generated 680,000 kWh, effectively supplementing the industrial park's electricity demand. The company purchased a total of 47,970,200 kWh of green electricity.

Note 1: Annual generation data for the distributed rooftop PV systems are calculated for Changhong Meiling headquarters

Note 2: The statistical scope of the total green electricity purchased covers Changhong Meiling, Hefei Industrial, Hongmei Intelligent, Jiangxi Meiling Mianyang Meiling, Changmei Living Appliances, Ridian Technology, Zhongke Meiling, Zhongshan Changhong and Changhong Air Conditioner.

Energy-Saving Retrofit

Changhong Meiling conducts in-depth analyses of energy consumption characteristics across the entire production and manufacturing process. Energy-saving retrofits are implemented through optimization of production processes and improvements in equipmen operating eficiency, efectively reducing energy consumption during production.

Zhongshan Changhong Energy-Saving Technical Retrofit Performance

Changhong Meiling Energy-Saving Technical Retrofit Projects

Adoption of enhanced vacuum i n s u l a t i o n a n d b l a c k c e ra m i c heaters with plate -penetrating light waves, effectively reducing energy consumption and improving equipment operating eficiency.

Helium Inspection Line 1 (internal) Helium Inspection Line 2 (external)

Zhongshan Changhong Energy-Saving Technical Retrofit Projects

Indicators and Targets Related to Energy Utilization

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

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

Utilization of Water Resources

Changhong Meiling places great emphasis on water resources management. The Company strengthens efficient water use through regular inspection and maintenance of water facilities, comprehensive deployment of water-saving equipment, posting of water conservation signage, and targeted inspections of pipelines to detect “leaks, overflows, and drips". The Company also applies the World Resources Institute's water risk assessment tools to model water-related risks, identifying regions such as Hefei, Mianyang, and Jingdezhen as areas classified with a high water-risk level. In response, the Company implements targeted measures, including the construction of emergency water storage tanks and enhanced water conservation awareness campaigns, efectively mitigating water resource pressure and continuously improving water management capabilities.

Definition

“High water-risk level" generally refers to a relatively high level of risk identified in flood and drought disaster prevention or water-related hazard assessments, arising from threats such as rainfall, river overflow, dam failure, or flash floods.

Developing a Circular Economy

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

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

Changhong Meiling's Ongoing Promotion of Packaging Material Circularity 长虹空调参与

In 2025, the Company adhered to standardized container use, aiming to reduce employee handling time and minimize natural resource consumption. By encouraging suppliers to replace cardboard boxes with Euro-standard containers or returnable carts for all materials, the Company gradually achieved a cardboard-free manufacturing process, realizing a fully recyclable packaging system.

During the reporting period, Changhong Air Conditioner's suppliers switched to green packaging and implemented packaging recycling, covering 800,000 compressor units and 450,000 motor units, cumulatively reducing waste by approximately 390 tons, significantly decreasing the generation of solid packaging waste.

Green Production and Operations

Changhong Meiling remains committed to green development, integrating environmental protection principles throughout its entire production and operational chain. The Company actively advances green practices, fulfills its ecological responsibilities, and promotes sustainable development

Advancing Green Products

Changhong Meiling follows industry trends of green, high-eficiency, and energy-saving products, placing sustainable developmen as a core guiding principle. Adopting a prevention-first approach, the Company integrates environmental protection concepts across the full product lifecycle—including raw material procurement, product design, manufacturing, packaging and logistics, and product recycling—continuously advancing the green upgrading of its products

Raw Material Procurement

Priority is given to recyclable and renewable raw materials, all of which comply with WEEE, RoHS, and other relevant regulatory certifications.

Bio-based materials are applied at scale, incorporating degradable and environmentally friendly components such as straw and bamboo/wood powder, effectively reducing plastic consumption

Product Manufacturing

Advance the upgrading and retrofitting of production line equipment, eliminate highenergy-consuming and non-compliant devices, and implement technological upgrades on outdated equipment. Reduce the consumption of scarce resources such as copper, aluminum, and tin, while improving the level of clean production.

Optimize production processes and develop new surface decoration technologies to replace traditional spraying, improving material recyclability.

Product Recycling

Incorporate principles of disassembly, repairability, and reusability at the design stage to enhance secondar y product utilization.

Standardize material labeling to reduce complexity in recycling at the product endof-life stage.

Green Design

Continuously develop high-efficiency, low-energy consumption products to improve energy efficiency ratios. Promote standardization of core components, simplifying the variety and quantity of parts.

Complete the environmental upgrade of air-conditioning refrigerants, replacing the ozone-depleting R22 with environmentally friendly R290 propane, thereby reducing greenhouse gas emissions at the source and supporting both ozone layer protection and carbon reduction targets, demonstrating responsibility in green manufacturing.

Product Packaging

Develop and promote low-carbon, environmentally friendly packaging materials to gradually replace non-recyclable packaging;

Optimize user manuals by providing simplified pape instructions alongside electronic guides to reduce pape usage;

Fully implement green packaging concepts, moving toward cardboard-free packaging with Euro-standard containers, achieving a material switching rate of 76% in 2025.

Production Line Upgrades

In the freezer production park, air-source mold temperature units replaced traditional temperature control units, achieving a 20% reduction in electricity consumption.

In the refrigerator production park, remote-controlled automatic valves were used to precisely control steam usage time, resulting in a 19.4% year-on-year reduction in steam consumption in 2025

Changhong Living & Dining Room Pro Shared Air Conditioner Receives Energy-Saving, Carbon-Reduction, and Environmental Product Certification

In May 2025, the Changhong Living & Dining Room Pro Shared Air Conditioner was recognized for its excellent energy-saving performance and low-carbon

environmental features, successfully being listed in the “2024 Energy-Saving, Carbon-Reduction, and Environmental Te c h n o l o g y P r o d u c t C a t a l o g published at the Chinese Association of Refrigeration Member Conference. The air conditioner employs refrigerant flow adaptive adjustment technology to optimize energy use. Its APF value reaches 5.20, representing a 23.81% improvement over the Level 1 energy efficiency standard of 4.2, positioning it as an industry-leading cabinet air conditioner.

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

Establishing Green Factories

Changhong Meiling strictly adheres to national green factor y evaluation standards and construction requirements, systematically advancing the creation of green factories across all subsidiaries. In 2018, the Company was successfully approved as a “National-Level Green Factory," establishing a fully integrated green framework to strengthen the foundation for sustainable development. In 2025, the Green Manufacturing Grading Cultivation List recognized Changhong Air Conditioner as a “Provincial-Level Green Factory."

Honors and Awards

Promoting Green Ofice Practices

Changhong Meiling actively incorporates environmental protection concepts into daily operations, focusing on energy and resource management in office and residential areas. The Company has established a systematic energy management mechanism, developed annual energy management plans, formed dedicated task forces, appointed part-time energy managers with clearly defined responsibilities. Through precise electricity-saving measures, comprehensive water conservation initiatives, promotion of low-carbon office operations, and resource efficiency practices, the Company advocates waste sorting and aims to create a green and low-carbon ofice and living environment.

Protecting Biodiversity

Changhong Meiling and its subsidiaries actively respond to international initiatives, including the United Nations Convention on Biological Diversity and the 2030 Agenda for Sustainable Development. The Company strictly complies with domestic regulations specifically the China National Biodiversity Conservation Strategy and Action Plan (2023–2030). It conducts in-depth assessments of the potential impacts of its business activities on biodiversity and the ecological environment, and further clarifies environmental protection responsibilities, pollution prevention and control measures, and the identification and remediation of environmenta hazards across the full lifecycle—from product design and development, procurement of raw and auxiliary materials, and production processes, to product sales

美菱让美好来临

Embracing Responsibility Connecting Better Lives

Changhong Meiling has established a standardized, transparent, and securely controlled sustainable supply chain system, fosters a people-centered workplace environment, and actively fulfills its social responsibilities. Through comprehensive responsible practices, the Company is committed to promoting harmonious coexistence among the enterprise, its partners, employees, and society.

Building a Responsible Value Chain

Governance Related to Supply Chain Management

The Company has developed a tiered, cross-functional matrix organizational structure and has established a dedicated procurement department responsible for supply chain management, clearly defining the scope of responsibilities for each level and team. This structure covers the entire process of supplier development, procurement execution, contract fulfillment, and ESG management.

Changhong Meiling strictly complies with the Regulations on Ensuring Payment of Funds to Small and Medium Enterprises and the Anti-Unfair Competition Law of the People's Republic of China, among other relevant laws. Core systems, including the Supplier Management Basic System and Supplier Risk Management Standard, are in place. A dual audit mechanism for supplier qualifications and capabilities ensures attention to product quality and delivery capacity. Through systematic supplier onboarding, evaluation, empowerment, and performance assessment, ESG requirements are deeply integrated into supplier management, promoting sustainable collaboration along the industrial chain.

Strategy Related to Supply Chain Management

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

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

The Company has established a systematic mechanism for supply chain risk identification, risk assessment, and risk response. Clea evaluation and assessment standards are defined for supplier selection, auditing, appraisal, and performance evaluation processes Suppliers in the database are managed through tiered and diferentiated approaches, ensuring the continuous stability of the supply chain.

Supplier Onboarding

Developed the Material and Service Supplier Management Regulations and Production Material Supplier Onboarding Management Measures, establishing quantitative indicators across five dimensions: compliance and qualifications, production capacity, quality and technical capabilities, environmental performance, and social responsibility, forming a multi-dimensional assessment standard.

New suppliers are, in principle, subject to 100% on-site audits, with third-party verification applied to ensure compliance and to mitigate the risk of "paper qualifications."

Suppliers are categorized by strategic importance and risk level into strategic, core, and qualified tiers, with diferentiated allocation of cooperation resources and audit frequency.

Developed Production Material Supplier Audit Management Measures and Production Material Supplier Performance Evaluation Management Measures, establishing mechanisms for routine assessment, dynamic spot checks, and event-triggered audits.

Supplier Assessment

An ESG-based assessment framework is applied, incorporating environmental (E), social (S), and governance (G) indicators, including environmental certifications and labor rights protection.

Quarterly ESG dynamic assessments are conducted. Suppliers failing the assessment trigger a remediation warning process. Suppliers rated non-compliant for the quarter are required to suspend supply and rectify within a defined period, and those failing annual performance evaluation are removed from the supply base.

Developed the Supplier Incentive and Exit Regulations, specifying trigger conditions such as suppliers inactive for 24 consecutive months, high-risk evaluation, or poor audit ratings.

A standardized exit process provides a 1–3 month rectification period; if corrective measures fail, the exit process is initiated concurrently with a backup supplier switch plan to ensure uninterrupted supply.

In 2025, the Company completed the exit of 23 suppliers.

Implemented the Material and Service Supplier Management Regulations to establish a threedimensional ESG quantitative evaluation system, enabling precise grading and differentiated management.

Supplier ESG Management

Developed a tiered and categorized ESG audit process with "annual supervisory spot audits + annual full-cycle audits," helping suppliers improve ESG management practices.

In 2025, Changhong Meiling conducted on-site supervisory spot audits for 10 suppliers and surveyed 285 active suppliers in writing regarding ESG management. Certifications among suppliers include ISO 14001 (153 suppliers), ISO 45001 (101 suppliers), and SA8000 (5 suppliers).

The Company signs Corporate Social Responsibility Agreements with suppliers and provides onboarding training for supplier employees entering Changhong Meiling facilities, covering the Environmental (E), Social (S), and Governance (G) dimensions, establishing a routine communication mechanism.

Supplier Communication and Training

Diverse supplier training is conducted through a combination of "annual supervisory audits + on-site quality and technical guidance." Approximately 10% of suppliers are trained each year. In 2025, 17 suppliers received training.

The Company has implemented a smart supply chain platform (ISRM system), enabling real-time sharing of order status, production progress, inventory levels, and quality inspection data with suppliers, reducing delivery delays caused by information asymmetry.

Indicators and Targets Related to Supply Chain Management

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

During the reporting period, the Company achieved its supply chain management-related performance targets.

Leading Industry Development

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

Industry-university-research Cooperation

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

Industry Development Collaboration

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

Equal Treatment for Small and Medium Enterprises

Changhong Meiling strictly complies with the Regulations on Ensuring Payment of Funds to Small and Medium Enterprises and other relevant rules. The Company requires suppliers to prohibit child labor and forced labor, ensure timely and full wage payments, and avoid arrears to SMEs. Contractual payment terms with SMEs are consistent with those for other enterprises, without discrimination based on company size, and debts are repaid as per contractual agreements. For selected high-quality SMEs, the Company provides support such as optimized payment terms and financing recommendations, helping SMEs enhance their risk resilience and fostering a collaborative supply chain ecosystem involving large, medium, and small enterprises. As of the reporting period, there were no overdue payments to SMEs.

Empowering Employee Growth

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

Protecting the Rights and Interests of Employees

Governance Related to Employee Rights Protection

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

Strategy Related to Employee Rights Protection

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

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

Diverse Recruitment

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

Compliant Employment

In accordance with the recruitment management system, the Company provides equal employment opportunities and fair employment conditions, strictly prohibiting employment discrimination. Equal employment and equal pay for equal work are enforced, preventing any discrimination based on nationality, race, religion, ethnicity, gender, age, disability, or marital/childbearing status. A three-tier review mechanism is established to prevent the use of child labor, and any forms of forced labor are strictly prohibited. Changhong Meiling respects employees from diverse cultural, ethnic, and religious backgrounds, fostering an inclusive and diverse workplace environment. During the reporting period, no incidents of child labor, forced labor, harassment, bullying, or intimidation were identified.

Remuneration and Benefits

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

Democratic Management

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

Employee Satisfaction Surveys

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

Performance Feedback and Appeals

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

Deepening the Development of the Industrial Workforce

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

Indicators and Targets Related to Employee Rights Protection

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

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

Employee Training and Development

Governance Related to Employee Training and Development

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

Strategy Related to Employee Training and Development

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

Management of Impacts, Risks, and Opportunity Related to Employee Training and Development

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

Employee Career Development Channels

Vertical Development Channels

Employees in management and professional tracks can choose career paths aligned with their personal development plans for vertical advancement.

Management-track employees undergo dynamic adjustments through evaluations that combine current incumbents and candidates' presentations, competitive selection, democratic assessments, competency evaluations, performance scores, and performance grades

Professional-track employees are evaluated annually through performance assessments, technical evaluations, and expert appraisals. Results are combined with annual performance reviews and technical point rankings to determine job grade promotions, ensuring a structured vertical growth path.

The Company organized new employees to participate in the Xinghuo Training Camp

Horizontal Development Channels

Horizontal development is divided into crosstrack horizontal development and dual-directional development between management and professional tracks.

For cross-track development, the Company encourage employees from various professional tracks to participate in horizontal positions in line with their career plans, expertise, and capabilities.

We have established a dual-career development system that enables lateral mobility between professional and managerial tracks. This allows professional-track employees to compete for management positions while management-track employees can participate in professional-track evaluations.

Indicators and Targets Related to Employee Training and Development

To ensure the achievement of employee training and development targets in 2026, the Company plans to implement a diversified training system, deliver tiered and categorized training programs, adopt a blended online-and-ofline learning approach, and apply training efectiveness evaluation and incentive measures

Prioritizing Employee Well-being

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

Occupational Health and Safety

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

Safety Production Management System

The Company strictly complies with the Work Safety Law of the People's Republic of China, the Special Equipment Safety Law of the People's Republic of China, the Regulations on Safety Production Management of Construction Projects, and other relevant laws and regulations. Internal management systems have been formulated and implemented, including the Safety Training Management System, the Hazard Identification and Safety Risk Classification and Control System, and the Stakeholder Safety Management System. A comprehensive safety production framework has been established. The Safety Production Committee, led by the President, serves as the top safety leadership body, supported by the independent Safety and Environmental Protection Department. Subsidiaries and relevant departments have set up safety leadership teams. Each unit/department has dedicated (or part-time) safety oficers, building an enterprise model emphasizing intrinsic safety and scientific development

Preventing Safety Risks

A systematic mechanism for hazard identification, closed-loop remediation, and information tracking has been established. Each unit implements closed-loop hazard management in accordance with the Company's procedures for hazard registration, tracking, and closure. Regular inspections and remediation are conducted across all operational areas. Focusing on hazard inspection and remediation, a graded hazard tracking risks have been eliminated. Significant safety hazards (A/B level) are subject to companysupervised corrective actions, monitored until resolved, and formally closed. In 2025, Changhong Meiling identified a total of 172 hazards, including 106 hazardous chemical issues, 45 dust explosion issues, and 21 basic management issues. By the end of 2025, 170 hazards had been rectified, achieving a remediation rate of 98.84%.

Safety Emergency Management

A comprehensive system of emergency response plans has been established. Units regularly conduct fire drills, hazardous chemical handling exercises, and other on-site incident simulations to assess preparedness, enhance employee safety awareness, and strengthen emergency response skills. The latest Production Safety Accident Emergency Response Plan was filed with the Hefei Economic Development Zone Emergency Management Bureau in December 2024. In 2025, the Company conducted 9 comprehensive drills, 52 specialized drills, and 82 on-site response exercises, with a total participation of 13,987 person-times.

Safety Culture Development

The Company adheres to the principle of "safety first, prevention-oriented, comprehensive management," implementing diversified safety culture promotion and education activities. Safety knowledge dissemination, training on safety laws, regulations and safety certification, and campaigns such as the Ankang Cup, Safety Production Month, and Fire Safety Month guide employees to adopt correct safety concepts, behavioral habits, and working methods to achieve long-term safety production goals. In 2025, the Company organized 16 thematic training sessions for full-time and part-time safety management personnel, with approximately 500 participants, and 20 fire and security-themed trainings with about 8,000 participants.

Occupational Health Protection

The Company revised the Regulations on Occupational Health and Labor Protection Supervision and Management, strengthening hierarchical control over occupational safety risks. Accredited third-party institutions were engaged to conduct comprehensive testing of occupational hazard factors, including noise and chemical concentrations in production areas, covering 228 testing points to ensure full coverage. In 2025, Changhong Meiling completed 1,311 occupational health examinations, accurately identifying 44 employees with occupational contraindications, who were immediately reassigned according to established procedures to prevent occupational health risks at the source. No occupational disease cases were reported throughout the year.

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

2025 Occupational Health Quantitative Targets and Achievement Status

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

Dedicated to Giving Back to Society

Changhong Meiling upholds a strong sense of corporate citizenship, integrating social responsibility deeply into its development strategy. The Company actively advances its social impact across multiple dimensions, including rural revitalization, community cobuilding, and public welfare initiatives, demonstrating corporate social value and fulfilling its social responsibilities. In 2025, Mianyang Meiling conducted supportive procurement of agricultural and sideline products from regions including Seda and Pingwu in Sichuan Province, totaling RMB 106,000; Zhongke Meiling established university scholarships with donations of RMB 450,000.

Promoting rural revitalization

Responding proactively to national strategies for comprehensive rural revitalization, the Company leverages industrial assistance and consumer-driven support through the "Charity-Based Agricultural Assistance Initiative," promoting local economic prosperity and social progress while injecting corporate resources into rural development.

Building Harmonious Communities

The Company engages deeply with local community development, utilizing its resources through financial support and other channels to actively participate in community cultural events such as the "2025 Lighthouse Music Night." Employees are encouraged to participate in volunteer services, help maintain public order, and demonstrate exemplary civic spirit, fully reflecting the Company's responsibility as a community co-builder.

Supporting Public Welfare and Philanthropy

The Company commits to social welfare, organizing and participating in activities such as voluntary blood drives, book donations, and community care visits. These programs extend support to vulnerable groups, including left-behind children and outdoor laborers, shaping a positive public image of Changhong Meiling as a socially responsible and mission-driven enterprise.

Future Prospects

In 2026, Changhong Meiling will remain firmly anchored to the goal of high-quality development, accelerating digital transformation and intelligent upgrades, deepening green technology innovation and end-to-end low-carbon practices. Leveraging technological capabilities to drive industrial advancement toward greener solutions, the Company will strengthen talent pipelines and stakeholder collaboration, building a modern enterprise model that is resilient, peopleoriented, and value-creating. Changhong Meiling is committed to fulfilling its ESG promises and striving to write a new chapter in the Company's sustainable development journey.

Appendix

Key Performance Table

Index of Indicators