怡合达：东莞怡合达自动化股份有限公司2025年度可持续发展报告（英文版）

Business Inquiry Hotline: 400-900-9050 Official Website: https://www.yhdfa.com/ Contact Email: service@yiheda.com

Dongguan Yiheda Automation Co., Ltd. Sustainability Report

qihdu.怡合达 AUTOMATIONEXPERT 自动化

Contents

FOREWORD

About this Report 001 Chairman's Statement 003 About Yiheda 005

Sustainable Development 119 Key Performance Indicators Sustainability Report 125 Content Index

INDUSTRY DEVELOPMENT

APPENDIX

Making Intelligent Manufacturing Simpler Innovation-Driven Development Product Quality Management Customer Service Management Sustainable Supply Chain

ENVIRONMENTAL RESPONSIBILITY

Environmental Resilience Management 059 Addressing Climate Change 066 Resource Utilization Management 072 Pollution Prevention and Emission Reduction 078 Green and Eco-Friendly Production 080 Ecosystem and Biodiversity Protection 085

CORPORATE GOVERNANCE

Sustainable Development 043 Corporate Governance 051

SOCIAL RESPONSIBILITY

Walking Hand in Hand with Our Employees 091 Building a Better Society 116

About this Report >>

Report Statement

This Report discloses, objectively, in a standardized, transparent and comprehensive manner, Yiheda’s 2025 practices and performance in governance, economic, environmental, and social domains. Stakeholders may use this Report to understand the Company’s sustainability performance and to jointly advance the Sustainable Development Goals.

Reporting Cycle: This Report is an annual report.

For ease of expression and reading, “Yiheda”, “We” and “the Company” in this Report refer to Dongguan Yiheda Automation Co., Ltd.

Report Scope

Data Collection Period: From 1 January 2025 to 31 December 2025. For continuity and comparability, certain information has been appropriately extended beyond this period.

Reporting Entities: Unless otherwise stated, the policies and data presented in this Report cover the Company and its subsidiaries. The reporting scope is consistent with that of the annual report.

Preparation Basis

This Report has been prepared in accordance with Shenzhen Stock Exchange Listed Company Self-regulatory Guideline No.17 — Sustainability Report (Trial), Listed Company Self-regulatory Guideline No.3 — Preparation of Sustainability Reports (2026 Revision), and with reference to the Global Sustainability Standards Board’s Sustainability Reporting Standards (GRI Standards).

Data Sources

The information and data disclosed in this Report come from official internal documents, statistical reports, and annual reports of Yiheda and its subsidiaries. The financial information in this Report is presented in RMB. The Board of Directors is responsible for the truthfulness, accuracy and completeness of the Report.

Confirmation and Approval

This Report was approved by the Board of Directors for release on April 24, 2026, upon confirmation by the management.

Availability of this Report

Please consult this Report on the Shenzhen Stock Exchange website (http://www.szse.cn). If you have any suggestions regarding this report, please contact us at:

Phone: 0769-82886777-785

Email: lys@yiheda.com

ylda.怡合达® FA工厂自动化 一站式采购平台

Chairman's Statement

Time records our efforts and years witness our progress. 2025 marks Yiheda’s fifteenth year focusing on industrial automation and is a pivotal year for implementing the sustainable development strategy and pursuing high-quality growth through proactive transformation.

Fifteen years of steadfast purpose. Since establishment, we have adhered to the business philosophy of “delighting customers, ensuring employee well-being, satisfying shareholders, earning social respect,” and have consistently focused on the factory automation (FA) components sector, growing into an industry benchmark. Every step forward has depended on customers’ trust, the joint efforts of employees, partners’ cooperation, and broad societal support. This sustained backing underpins our resilience through market cycles and fuels a long-term commitment to sustainable development.

In 2025, amid major shifts in globalization and accelerating industry transformation, we met market changes with strategic resolve and addressed development challenges through reform. We embedded sustainable development across business processes, practiced responsibility in core operations, and demonstrated commitment through innovation, delivering annual results that balance development quality, environmental value, and social contribution.

In 2025, we strengthened product competitiveness and accelerated digital and intelligent enablement across production, operations, and services, improving operational efficiency and resource allocation simultaneously. Technological innovation reinforced our product advantages: high quality, short lead times, and strong cost performance. We advanced comprehensive supply-chain reform and worked with upstream and downstream partners to build a sustainable industrial value chain. We expanded globally, extending overseas markets and service networks to offer solutions from China to support global manufacturing transformation.

In 2025, we pursued a proactive change agenda, initiating organizational reform, strategic recalibration, cultural development, and system restructuring. We improved ESG management and strengthened risk management and internal controls. Through standardized, transparent governance, we protected shareholders' rights and received multiple honors, including the SSE Eagle Gold Quality 2025 Corporate Governance Award.

In 2025, we treated green, low-carbon development as the foundation of high-quality growth and systematically advanced energy conservation, resource recycling, and pollution prevention. We implemented distributed photovoltaic projects, optimized our energy mix, and safeguarded ecological and environmental safety.

In 2025, we upheld a people-centered approach and comprehensively protected employees' lawful rights. We improved compensation, benefits, and career-development systems and reinforced human-centered care so the Company serves as a harbor for employee growth and a stage for value realization. We view social reinvestment as a core mission and deepened philanthropic engagement and regional empowerment, participating in education initiatives and rural revitalization to deliver tangible corporate citizenship.

Industry automation is a core enabler of global manufacturing transformation and a key engine for high-quality development. At this new starting point, we recognize that sustainable development is not a slogan, but an essential, long-term choice embedded in our operations.

Looking ahead, we will continue to uphold the mission of “making intelligent manufacturing simpler” and pursue the vision of becoming a global leading one-stop service platform for long-tail manufacturing demand, providing critical support for industrial ecosystem linkage. Guided by a commitment to care toward customers, products, colleagues, and ourselves, we will create value for customers with sincerity and professionalism. With the courage to reform, we will break path dependence and embrace industry change to find new growth through continuous innovation. With a desire for growth, we will maintain an open mindset, pursue continuous improvement, grow together with all employees, achieve win-win outcomes with partners, and align with global industry development.

Liguo Jin Founder and Chairman of the Board

About Yiheda >>

Company Profile

Dongguan Yiheda Automation Co., Ltd., founded in 2010, specializes in the research, manufacture and sale of factory automation (FA) components and serves as a leading domestic one stop supply platform for FA components.

Yiheda focuses on automation equipment and understands the long tail procurement characteristics of automation components, including large SKU counts, small batch sizes, multiple batches, high frequency and low unit value. Guided by the Four Modernization Initiatives — standardization of non-standard parts, consolidation of fragmented orders, platformization of delivery formats and empowerment of suppliers and buyers — the customer procurement model has shifted from “independent part design + offline multi-supplier sourcing” to “simple part selection + one-stop procurement.” This change has reformed the supply of automation components, shortened customers’ design, procurement and delivery cycles, and provided products and services that deliver timeliness, variety and reliability (TVR).

After fifteen years of development, Yiheda has adopted an information-driven platform model that integrates upstream and downstream resources across the automation industry. Beginning with standards setting and product development and following the path “product supply — platform integration — ecosystem drive,” the Company has progressively increased the share of standardized, modular, and componentized parts in automation equipment. For components that are difficult or uneconomic to standardize, the Company has strengthened full-chain digital capabilities for production and transactions, including automated quoting and programming systems, to improve supply efficiency, reduce overall costs, and promote technological advancement in the automation industry.

Milestones

February 2012

December 2010

Published the first edition of the FA catalogue after one year of preparation.

The Company was established; the initial plant was located in Humen Town, Dongguan.

Annual Honors and Awards

November 2014

Launched self-operated industrial e-commerce platform to simplify procurement.

July 2017

Expanded warehouse capacity and increased regular inventory items.

Top 20 Enterprises by Main Business Revenue in Hengli Town, 2024

Hengli Town People's Government, Dongguan

Hengli Town Contribution to Economic Performance Award, 2024 Hengli Town People's Government, Dongguan

Dongguan "Enterprise Doubling" Award 1 , 2025

Dongguan Municipal Bureau of Industry and Information Technology

July 2021

Completed construction of automated intelligent warehousing with a design capacity exceeding one million SKUs.

July 2021

Completed new South China and East China campuses in Lixian Town, Dongguan and Kunshan, Jiangsu.

Ranked 170th among Guangdong Top 500 Manufacturing Enterprises, 2025

Guangdong Manufacturing Association; Guangdong Development and Reform Research Institute; Industrial Economics Research Institute, Jinan University

Outstanding Practice Case for Listed Companies’ Board Office, 2025 \_\_\_\_\_\_ 8 \_\_\_\_ China Association for Listed Companies

Outstanding Practice Case for Annual Report Performance Briefing, 2024 China Association for Listed Companies

July 2021

2022

Listed on the Shenzhen Stock Exchange, stock code 301029.

Disclosed Phase II projects in South China and East China with an estimated gross floor area of approximately 500,000 m 2 ; phased construction began in 2023.

May 2024

Outstanding Practice Case for Listed Company Boards, 2025 \_\_\_\_\_\_ 8 \_\_\_\_ China Association for Listed Companies

May 2025

Golden Information Disclosure Award, 2024 China Securities Journal

Top 100 Private Industrial Enterprises in Dongguan, 2025

The Company obtained refinancing registration approval from the China Securities Regulatory Commission.

Selection Working Committee for Dongguan Private Enterprises and Entrepreneurs

South China Phase II project officially commenced production.

Top 300 Most Popular Listed Companies

Dongguan Outstanding Quality Management Unit

Dongguan Market Supervision and Administration Bureau

01

INDUSTRY DEVELOPMENT

Industrial automation is a critical enabler of manufacturing transformation and upgrading. Guided by the mission “make intelligent manufacturing simpler,” Yiheda focuses on automation components and pursue technology-driven innovation while maintaining product quality and customer service as foundational priorities. The Company coordinates upstream and downstream partners to build a strategic, collaborative supply-chain mechanism, promotes standardization and ecosystem empowerment, and supports the high-quality development of the manufacturing sector.

Making Intelligent Manufacturing Simpler >>

Focusing on core industry needs, Yiheda prioritizes high quality, fast delivery and low cost to address long tail procurement of nonstandard automation equipment, characterized by large SKU variety, small and frequent batches, multiple runs and low unit value. By standardizing nonstandard parts, consolidating fragmented orders, standardizing transaction formats on a platform and empowering suppliers and buyers, the Company optimizes supply chain resources to deliver its TVR promise: Time (speed), Variety (breadth) and Reliance (dependability).

Yiheda serves downstream markets including new energy lithium batteries, photovoltaics, 3C electronics, automotive, industrial robotics, defense, medical devices, semiconductors, laser processing, food and logistics. Leveraging six core capabilities and starting with standards setting and product development, the Company steadily raises the proportion of standardized, modular and component parts in automation equipment. For parts that are difficult or uneconomic to standardize, the Company applies full chain digitalization across production and transactions and enhances features such as automated quoting and programming to boost supply efficiency, lower overall cost and advance technological progress in the automation industry.

Full-BOM One-Stop Procurement Platform

Based on a broad customer base and long-term accumulation of customer demand characteristics, Yiheda provides a full-BOM one-stop procurement platform covering FA (non-core standard components), FB (non-standard components) and FX (branded core components). The platform addresses end-to-end needs from standardized parts to customized components and branded core items, delivering comprehensive procurement solutions.

FA Standardized Components Business

Yiheda standardizes automation components into modular assemblies and, supported by a complete supply system, has established a factory automation standardization framework and product selection manuals covering six domains to support a one stop procurement platform.

Focus on non-standard automation equipment; standardize designs and categorized selection components by application scenario.

Leverage standards, product development, supply-chain and platform operations, enabled by digitalization, to deliver high-quality, low-cost components with short delivery times.

As of the end of the reporting period, Yiheda had developed an FA components product system covering 205 major categories, 4,025 subcategories and 2,800,000 SKUs, providing customers with a comprehensive one-stop procurement service.

FA product system covering 205 major categories

4,025 subcategories

2,800,000 SKUs

FB Non-standard Components Business

Yiheda manufactures custom-machined components for non-standard equipment based on customers' application scenarios. To address industry pain points in non-standard customization, the Company invests in equipment and in-house machining to support small-batch, multi-variety production, improve precision, and enhance automated quoting systems, thereby improving supply efficiency and reducing total cost.

\* Tailored solutions: We provide bespoke non-standard product designs and customization services supported by a professional team and scalable capacity.

\* Comprehensive coverage: Services span component machining, high-precision manufacturing, and module assembly and commissioning.

\* Processing capabilities: Machining processes include milling, turning and grinding; support for 150+ materials and 50+ surface treatments.

\* Intelligent quoting: An AI-driven quoting system analyzes part features and machining parameters, plans optimal process routes, and reduces quoting time from hours to seconds; system supports single-unit orders.

FX Branded Core Components Business

Yiheda’s FX business has strengthened customer-segmentation management and improved operational turnover to develop capabilities for product selection, procurement, management, and modification. This one-stop procurement solution meets the purchasing needs of small and micro customers and provides brand owners with more granular market access, thereby generating greater value for both buyers and brand owners.

Advancing Industry Development

Yiheda’s strategy, which comprises product supply, platform integration, and ecosystem development, aims to lower barriers to automation adoption. By standardizing and centralizing production, we cut costs and boost efficiency, enabling more manufacturers, especially SMEs, to access high-quality, low-cost automation components and services with shorter lead times, thereby improving accessibility and supporting inclusive industry growth.

Standardization of Non-standard Components

Focusing on platformization and ecosystem building, we promote technological progress and lower industry entry thresholds. We have developed professional design manuals to convert complex non-standard technologies into a standardized knowledge system. Relying on customer research and feedback, we continuously refine the product and knowledge systems to expedite technical standardization across the industry.

Deeply Empower Engineers

Yiheda focuses on engineers' core design needs and restructures the entire design-to-service workflow with digital tools to enable efficient automation design and boost industry productivity.

We address the time-consuming challenge of component selection in mechanical design by providing a product knowledge base, guided selection, e-book downloads, and online courses. Engineers can download our industry-leading digital selection tools and plugins free of charge, including the 3D Component Model Library, 3D Geometric Search, Non-standard Design Calculation and Selection Tool, and Aluminum Profile DIY Design Software. We also offer free online training and full-cycle technical support, front-loading services into the design phase to significantly increase selection efficiency and streamline design work.

Automation Parts Selection Software

Yiheda's selection software addresses the industry issue of large component variety and time-consuming screening by aggregating all component categories—from standard screws and nuts to complex transmission parts—and applying multidimensional classification by function, size, material and precision. The platform provides 3D model-based selection, curated cases, product knowledge outputs and end-to-end technical services, streamlining selection workflows and enabling engineers to locate suitable parts rapidly.

During the reporting period, we released 3D Model Library 2025—2.0, which improves functional configurations and supports fast local invocation and intelligent searches (fuzzy search, full-model search, 2D sketch search, 3D geometric search), shortening selection cycles and reducing duplicate modeling. The library fully integrates all versions of professional design plugins, supports plugin use and model export for modification, and offers online updates without full reinstallation, thereby improving design efficiency and controlling R&D costs.

Steady Advancement of Global Business Layout

Relying on a competitive domestic supply chain and comprehensive FA service capabilities, Yiheda has expanded overseas through strategic partnerships, localized supply, distribution models, and cross-border e-commerce. Operations now cover more than 30 countries and regions across Asia, North America, Europe, South America and Oceania.

We will deepen industry and application engagement to address manufacturer's long-tail needs, build localized service teams and warehousing networks, and shift from “Chinese products sold globally” to “Chinese capabilities deployed globally.” This shift will improve global response speed, enhance partner co-creation, and support efficient operation of international supply chains with high-quality solutions.

Digital-Intelligent Transformation

Yiheda treats digital-intelligent transformation as the primary means to address the FA sector's characteristics of small batches, many varieties and high-frequency deliveries, and to improve operational efficiency, resource utilization, supply-chain resilience and customer value through digitalization, flexible intelligent manufacturing and advanced smart warehousing.

Digitalization

Yiheda integrates information systems and digital capabilities to support one-stop procurement of FA components. We have customized and iteratively upgraded the ERP system to deliver end-to-end information management covering order intake, production planning, procurement coordination, and final delivery, thereby improving order response and shortening lead times. Standardized data interfaces enable data exchange and collaboration with upstream suppliers and downstream customers. The management platform is evolving into an integrated digital ecosystem that consolidates procurement, approvals, logistics, and settlement.

Leveraging a digital product database and an online e-commerce system, we provide precise product selection and efficient procurement, simplify customers' design-to-purchase workflows, and support 24/7 multi-language, multi-currency transactions. Digital tools permeate order processing, commercial collaboration and supply-chain management. In FB scenarios, we deploy large AI models for product image recognition and automated quoting, reducing quotation response from hours to seconds and significantly improving responsiveness to long-tail and customized orders.

Intelligent Manufacturing

The Company regards intelligent manufacturing as the primary means to reduce costs, improve efficiency, save energy and ensure quality. We are deploying flexible manufacturing systems (FMS) to upgrade traditional production and to transition from automated production lines to intelligent production lines.

Case

Flexible Control System

Yiheda has implemented a three-tier collaborative architecture centered on a flexible control system to support multi-variety, small-batch production, which breaks down machine data silos and enable unified intelligent scheduling across material handling, machining and quality inspection. The production line operates fully automatically with zero manual intervention, meeting multi-variety, small-batch production requirements.

By integrating APS advanced scheduling with MES execution for full-process control, the system automatically identifies bottlenecks and allocates resources to ensure stable, efficient production. The FMS is data-driven and provides visibility and traceability of equipment status, tool life, workpiece processing, and production data. These capabilities improve efficiency, lower unit energy consumption, and reduce defect rates, thereby strengthening production competitiveness.

Equipment Data Analytics

Tool Management

Quality Data Management

System Interface Integration

Intelligent Warehousing

Yiheda has implemented a digital, automated intelligent warehousing system, which serves as the first large-scale smart-logistics benchmark in China’s factory automation components sector and supports high-frequency deliveries.

We implemented an integrated warehouse management system that optimizes sorting routes, coordinates intelligent picking with manual operations, and links orders, storage, and logistics end-to-end to improve throughput.

The system interfaces with OA and ERP, automatically generates pick lists, plans routes, monitors order progress in real time, and issues alerts to shorten order processing time. Barcodes and RFID enable automated receiving and dispatch and accurate classification, reducing manual errors. Intelligent algorithms optimize sorting and routing; AI provides real-time inventory monitoring, analysis and demand forecasting to raise turnover and lower inventory costs and risks.

After implementation, order processing, logistics efficiency and customer service improved significantly, strengthening the Company's delivery capability.

During the reporting period, we advanced automated production lines and cost-reduction technologies and commissioned 13 automated lines. The utilization rate of non-standard small-parts equipment rose from 12% to 37.2%, peaking at 80.4%. Optimization of robot material-change processes increased efficiency by 50%. We installed zero-point fixtures and standardized tool tables, eliminating alignment waits and reducing setup time per drawing from about 50 minutes to virtually zero, freeing capacity and stabilizing production.

Innovation-Driven Development >>

Technological innovation is the core engine of Yiheda's sustainable development. We drive high-quality growth in the automation components business by building R&D platforms, implementing talent development and incentive mechanisms, and strengthening commercialization and intellectual property management, thereby enhancing core competitiveness and advancing industry technologies.

R&D Strategy

Yiheda pursues the standardization, serialization, and modularization of automation components, guided by industry- and scenario-specific requirements. Focus areas include product development, process optimization, and the expansion and publication of corporate product standards to strengthen product competitiveness.

R&D System

Yiheda has established a three-tier R&D system with clear hierarchy, defined responsibilities and efficient collaboration to implement R&D strategy and technological breakthroughs.

Managem

Positioning

R&D strategy centered on "ultimate product capability"

Objective

Deliver high-quality products and superior design experience so customers consistently perceive efficient, seamless use

Execut

Positioning

“R&D Center + Product Center” dual core

Objective

Align precisely with downstream application scenarios; R&D Center focuses on core technologies and standardization

Suppo

Positioning

Leverage digital platforms, e-commerce data and customer feedback

Objective

Coordinate supply chain and smart manufacturing to ensure rapid commercialization and mass production of R&D outcomes

Yiheda continuously enhances R&D infrastructure and equipment to support technological innovation. The research center exceeds 6,600 m 2 , comprising an R&D design and planning office of approximately 3,400 m 2 , a pilot-production area of approximately 1,800 m 2 , and laboratories of approximately 1,400 m 2 . The laboratories were established and operate under CNAS standards and received CNAS accreditation in 2024, enabling full-process testing of in-house developed products to ensure quality and technical reliability. The Company also maintains engineering and industrialization capabilities, with production and processing facilities covering approximately 60,000 m 2 and more than 500 CNC machines, providing mature standard and non-standard processing capabilities to support the rapid commercialization of technological results.

We prioritize R&D funding for infrastructure improvement, the recruitment of senior technical personnel, and new product development to ensure stable financial support for ongoing innovation. During the reporting period, total R&D expenditure amounted to RMB 129 million, representing 4.39% of operating revenue.

Total R&D expenditure RMB 1.29 million

Share of operating revenue

4.39%

Yiheda balances external recruitment and internal development to build a professional, high-quality R&D talent pipeline. Through diversified channels, the Company attracts experienced industry professionals and high-potential candidates. A comprehensive training system and clear career paths support a stable talent structure that sustains technological innovation. As of the end of the reporting period, R&D personnel totaled 407.

We maintain a comprehensive innovation incentive system that encourages exploration of frontier technologies, ensures compliance with safety requirements in innovation activities, and streamlines commercialization channels to align technologies with market demand. A diversified reward framework, including performance bonuses for technology transfer and year-end special awards, ensures innovators share in the Company’s growth and motivates sustained creativity.

Yiheda was recognized as a High-Tech Enterprise, and its wholly owned subsidiary Suzhou Yiheda Automation Technology Co., Ltd. (hereinafter “Suzhou Yiheda”) was designated a Jiangsu Province “Specialized, Sophisticated, Unique, and Innovative” (SSUI) Enterprise.

R&D Risk Management

Yiheda attaches great importance to risk management in new product development and, following formal procedures, implements standardized full-cycle controls from project initiation through acceptance and closure.

New Product Development Procedure

The Company has established the New Product Development Management Procedure, which divides the R&D process into five stages: project initiation, concept and detailed design, design verification, pilot production, and project closure. Routine process controls and stage-gate assessments enable real-time monitoring of progress and prompt issue resolution.

At project initiation, standardized requirement reviews and feasibility analyses control market, technical, and compliance risks. During concept and design, structural self-checks, tiered reviews, and patent-infringement screening mitigate design and intellectual property (IP) risks. In design verification, engineering samples and prototypes undergo comprehensive testing and dedicated reviews to validate performance and environmental compliance. In pilot production, mold trials and small-batch runs confirm mass-production feasibility. At project closure, project reviews and knowledge consolidation capture lessons learned to improve management effectiveness.

The Company has implemented a full-node, tiered review mechanism and a standardized document management system that standardizes initiation, mid-term, and acceptance/closure reports, defines baseline criteria for scope reduction and establishes a unified change-control process to ensure end-to-end traceability and control of R&D risks.

Start

Propose R&D Requirements

Process Planning

Prototype Testing

Product Mould Opening & Trial Run

Trial-Mould Product Testing

Pilot Production (Low-Volume Trial)

Pilot Production Product Testing

Pilot Production Review

Mass Production Handover

R&D Project Summary

Project Closure Approval

End

R&D Objectives and Targets

Yiheda has long focused on the automation sector, accumulating extensive R&D and commercialization experience, and establishing core technologies and products with independent intellectual property rights.

R&D Objectives

Core Objective

Develop an automation-components product system characterized by high quality, low cost, and short lead times to support the industrial ecosystem.

Technical Objective

Master core technologies for high-end automation components and align with internationally advanced standards.

Industrial Objective

Address long design cycles, high procurement costs, and unreliable delivery times to increase the market share of domestically produced automation components.

During the reporting period, Yiheda made breakthroughs in intellectual property strategy, new product development, construction of a technology middle-platform, and document standardization, supporting the implementation of the long-term strategy. The Company initiated 61 new R&D projects; project continuity and iterative capability were improved. The internal technical standards system was enhanced, with 258 corporate technical standards issued. The Company co-authored two external group standards: “Planetary Roller-Screw Assemblies for Humanoid Robots — Part 3: Test Methods” and “Accuracy and Performance Test Methods for Ball Screws Used in Humanoid Robots.”

Cumulative new R&D projects initiated

61

Corporate technical standards issued

258

External group standards co-developed

2

Industry-University-Research Collaboration

We balance independent development with industry-university-research collaboration and have issued specific Management Measures. Stable university partnerships have supported projects including development of a multi-purpose automatic reclaiming feeder, multi-link adjustable-shaft flexible gripper technology, and a rapid lateral-transfer flip-and-pick manipulator, promoting technology transfer and application.

During the reporting period, Yiheda entered a long-term strategic partnership with South China University of Technology to establish a joint laboratory, focusing on CAM industrial software for large-scale customization of non-standard parts, enhancing automation in core businesses and advancing talent cultivation.

Intellectual Property Protection

Intellectual property is a core asset for technological innovation and sustainable development. Yiheda has established and certified an IP compliance management system under GB/T 29490 and was designated a Key Intellectual Property Enterprise by the Dongguan Market Supervision Administration.

IP Management Strategy

Yiheda follows four principles: strategic orientation, leadership commitment, company-wide participation, and end-to-end management. We integrate our IP strategy with business and technology strategies, covering the entire lifecycle of industrial aluminum profiles, linear motion components, and transmission parts.

IP Management System

The Intellectual Property Management Manual is the principal governance document, supported by procedures for IP risk control, IP management, R&D, procurement, production and sales, confidentiality, legal dispute handling, and rewards and penalties, forming a complete institutional control framework.

Yiheda has a clear hierarchical IP governance structure: the General Manager is the primary responsible person; a full-time management representative oversees system implementation and improvement; a dedicated IP department handles filings and protection; and each business and functional unit appoints part-time IP personnel.

We embed IP management into core business processes through specific control procedures for R&D, procurement, production, and sales, and continuously optimize effectiveness through internal audits, management reviews, and continuous improvement.

Intellectual Property Risk Management

Yiheda has established an end-to-end IP risk management system and issued the IP Risk Management and Control Procedure, designating the FA R&D Department as the lead for risk identification, assessment, response and lifecycle monitoring.

We integrate IP risk control across R&D project approval, product development, procurement, outsourcing, manufacturing, sales, and external cooperation, applying differentiated controls for internal and external risks, with an emphasis on prevention and remediation. A risk-warning mechanism and an emergency response plan require departments to monitor risks within their scope and issue timely alerts; the FA R&D Department maintains the IP risk register and implements targeted control measures.

Fostering an IP Compliance Culture

Yiheda adheres to the IP management principle of “encourage creation, prevent risks, manage effectively, and standardize use,” embedding IP compliance into the corporate culture and all business processes. Compliance training is mandatory, and a long-term awareness mechanism has been established.

During the reporting period, the Company delivered three targeted training sessions on patent filing and mining, IP compliance system operation, and copyright infringement identification and compliance. Training content covered patents, trademarks, copyrights, trade secrets and the GB/T 29490 compliance framework, and addressed practical topics—patent mining, end-to-end compliance controls, and infringement risk identification and avoidance—thereby closing knowledge gaps and enhancing IP operational capabilities in key roles.

Intellectual Property Management Objectives and Indicators

During the reporting period, Yiheda exceeded the IP-filing target, and achieved comprehensive IP coverage in core technology areas. The Company completed patent-infringement risk screening for 14,705 product codes, ensuring compliance coverage for core products and effectively mitigating IP risks.

During the reporting period

IP filings completed 154

Product codes screened for patent-infringement risk 14,705

Product Quality Management

Yiheda has established a customer-centric quality management system covering the entire product lifecycle, ensuring end-to-end quality from supplier qualification and production to delivery and after-sales through standardized management mechanisms. Yiheda is ISO 9001 certified. During the reporting period, the Company was awarded Outstanding Quality Management Unit in Dongguan.

Quality Management Strategy

Yiheda embeds quality control across the business value chain to improve quality, enhance efficiency and create value. By strengthening process control and standardization, the Company ensures product reliability and improves customer experience, reduces quality-related costs, and enhances operational performance. The Company develops a quality talent pipeline, implements a QMS information system, and fosters a quality-improvement culture to build long-term competitive advantage in quality.

Quality Management Policy

Yiheda's quality policy: customer-centric; pursuit of excellence; and delivery of the most reliable products to customers.

Quality Management Objectives and Indicators

Quality objectives align with Yiheda's strategic plan. Departments set targets and implementation plans based on corporate goals and past performance; targets are approved and executed. Monthly data reporting and annual reviews track progress; departments that miss targets must implement corrective actions. During the reporting period, workshop incoming-inspection first-pass yield was 99.5%; overall first-pass yield was 99%.

Workshop incoming-inspection first-pass yield reached 99.5%

Overall first-pass yield reached 99%

Quality Management Structure

Yiheda has established a clear, accountable hierarchical quality management structure, led by the General Manager, coordinated by the Quality Director, and executed by the Quality Center.

Quality Management System

Yiheda strictly complies with laws and regulations, including the Product Quality Law of the People's Republic of China. Based on operational needs, the Company has issued internal rules and procedures including Precision Manufacturing Production Process Control Procedure, First-Article and Patrol Inspection Guidelines, Incoming Material Defect Handling Regulations, and Supplier 100% Inspection Management System, thereby forming a quality management system that covers all business processes and ensures traceable, rule-based quality control activities.

Yiheda maintains a regular procedure-revision mechanism and updates system content promptly in response to regulatory changes, shifts in the external environment, and business development needs to preserve the suitability and effectiveness of the quality management system.

Quality Risk Management

Yiheda has implemented a systematic quality-risk management mechanism. The Risk and Opportunity Control Procedure defines requirements for risk identification, assessment, response and review. Risks are quantified by severity and occurrence frequency to calculate a risk coefficient, then classified then classified as high, medium, or low, with corresponding responses of avoidance, mitigation, or acceptance.

The Company conducts at least one annual risk-and-opportunity review and adjusts risk control strategies dynamically in response to internal and external changes to prevent quality incidents.

Quality Process Management

Yiheda’s quality-process management spans the entire product lifecycle, forming a closed loop from order review, R&D, incoming-material inspection, production process control, finished-goods outbound inspection, inventory patrols and after-sales handling, ensuring effective control at every stage.

Production Process Control

Implement combined first-article and patrol inspections with defined standards, frequencies and sample sizes to detect and address production anomalies promptly.

Warehouse Control

Enforce receiving inspection, zoned storage, FIFO and regular patrols to prevent damage or mix-ups during storage.

Nonconforming Product Management

In accordance with the Nonconforming Product Management Procedure, apply standardized marking, isolation, review and disposition to prevent nonconforming products from entering the market or being used.

Process Traceability

Maintain records and traceability mechanisms for all quality control processes to enable verification, analysis and subsequent improvement.

Supplier Quality Management

Yiheda has established a closed-loop supplier-quality management system covering supplier development, qualification, daily-control and continuous improvement to secure supply chain quality at the source.

The Company has issued the Supplier Development and Management Control Procedure and Supplier 100% Inspection Management System, defining evaluation criteria, audit processes and cooperation requirements. Suppliers undergo regular performance assessments; all suppliers sign full-inspection quality agreements and are subject to incoming-material inspection and nonconformance feedback. Suppliers that deliver defective incoming materials must implement corrective actions and verification; repeated noncompliance may result in a warning, suspension, or termination of cooperation.

Quality Improvement Measures

Quality Management System Construction

During the reporting period, Yiheda enhanced the Quality Management System (QMS). The QMS is an integrated platform spanning product realization and linking quality data across the Company and subsidiaries, covering R&D, incoming materials, production, shipment, after-sales, system audits, organizational knowledge, laboratory, and hazardous-substance management. The platform supports the Quality Center in improving quality, reducing costs, and ensuring compliance.

Zero-Defect Pilot Project

During the reporting period, Yiheda launched Zero-Defect Phase II. The project comprised 27 initiatives across four pilot programs, focusing on quality improvements in shaft, pin, and fastener product centers, process and delivery in the FB Division workshop, and South China quality team development. The project translated quality methods into processes and systems, and strengthened professional capabilities to support business objectives and global expansion.

Initiatives carried out

27

Pilots covered

怡合达零缺陷二期结项会

Quality Culture Construction

Yiheda places high priority on cultivating a quality culture and integrates it into daily operations as a foundation for quality management and staff alignment.

We designated 2025 as the Quality Standards Year and implemented multi-level communications, training, competitions, and consolidation activities to promote the learning and application of standards, strengthen quality awareness, and thereby support the continuous improvement of quality management.

Launch Meeting

A launch meeting opened the campaign; leadership pledged support and implementers took an on-site oath. Slogan collection and multi-channel publicity embedded the “learn standards, apply standards” concept into business practice.

Quality Training

Adopted an online + offline + supplier☒ extension training model covering quality awareness and standard development. Total participants: 1,514 (online 1,344, offline 94). Training extended to 76 suppliers.

Competition-Driven Improvement

A quality knowledge contest attracted 321 participants with over 1,000 submissions. A debate with 6 teams discussed topics such as quality vs. efficiency and standards vs. innovation.

Standard Optimization

An improvement closed-loop was established: 6 outstanding standard documents were selected; 12 improvement suggestions were adopted as projects; an execution-feedback-optimization loop was implemented.

Cultural Resonance

The “Quality in the Heart” essay contest received cross-department participation; 8 outstanding articles were selected.

Feedback and Outlook

Year-end survey collected 137 questionnaires and 74 suggestions. Over 80% of employees affirmed the campaign's effectiveness and proposed improvements in training targeting and practical guidance to inform next steps.

Quality training participants (person-times) 1,514

Employees in quality knowledge contest 321

Suppliers covered 76

Customer Service Management >>

Yiheda is committed to delivering high-quality products and services, maintaining effective customer communication and collaboration mechanisms, prioritizing customer needs to create value, growing with customers, and safeguarding customer rights.

Customer Service Strategy

Yiheda centers on customer needs and integrates product capability development across R&D, production, sales and after-sales. R&D converts customer requirements for performance, functionality and appearance into design specifications. Production standardizes operating procedures and optimizes schedules to improve on-time delivery. Sales and after-sales operate rapid-response mechanisms to resolve issues and drive product improvements.

Yiheda offers a “component selection + one-stop procurement” solution to enhance responsiveness and service quality and to address procurement pain points. Through the Company’s self-operated e-commerce platform, customers can complete product selection, price inquiry, order placement, payment and order tracking online. A localized customer service team provides dedicated professional support.

Customer Service Features

Fast

Comprehensive

\-90% standard parts delivered within 3 days

• FA component SKU: >280 million

• Products customizable per client request

• Covers 205 major categories, 4,025 subcategories

\- Custom-made items negotiable for delivery schedule

• Non-standard customization available

\- Integrated intelligent warehousing enables expedited dispatch

\- Joint development of new industry products per client demand

Supportive

• Full product series support 3D modeling-based selection

• Enhanced design efficiency via curated case studies / product knowledge

• Pre-sales solution design assistance

• Post-sales technical training services

Customer Service Management System

Yiheda emphasizes standardized customer service and has issued Customer Satisfaction Control Procedure and Customer Complaint Control Procedure, linked with Corrective and Preventive Actions Control Procedure and Nonconforming Product Control Procedure to standardize satisfaction monitoring, complaint handling and corrective actions, thereby protecting customers' rights and service experience.

Yiheda has established a clear, coordinated, closed-loop service management mechanism with defined departmental responsibilities: the Marketing Management Office and Sales Department oversee planning, implementation and performance review; the Marketing Center and Customer Service Group act as front-line rapid-response units for complaints and initial handling; the Quality Management Center and Product Department analyze root causes, develop targeted corrective plans and drive implementation.

The Company maintains a professional sales and technical service team comprising 26 sales-engineer teams and 28 sales offices, and integrates online service, hotline and on-site visits to provide full-cycle pre-sales, in-sales and after-sales support.

Pre-sales Support

Provide sizing calculations, product training and case studies to help customers complete solution design efficiently.

In-sales Assistance

Resolve technical and commercial issues during procurement via dedicated technical groups and rapid quotation responses.

After-sales Training

Deliver professional technical training and maintain regular service response Monday–Saturday to meet customer needs comprehensively.

Customer Satisfaction Survey

Yiheda maintains a standardized, regular customer satisfaction survey to identify customer needs and service gaps and to improve the overall experience. The Marketing Management Office designs questionnaires and plans; the Sales Department conducts annual distribution, collection and analysis; data are consolidated and reported within prescribed deadlines. Issues identified are addressed jointly by relevant departments with corrective measures tracked to closure, forming a closed loop of survey - analysis - correction - improvement.

Customer Complaint Management

Yiheda prioritizes customer rights and experience and operates a closed-loop complaint system covering initiation, handling and review. The Company defines operational standards, responsibilities and handling timeframes and includes customer-complaint rate in departmental performance assessments.

Complaints are received by the Marketing Center and converted into work orders; the Customer Service Group verifies and follows up accordingly. Materials posing risk are immediately frozen and inspected; root-cause investigations, corrective plans, responsibility allocation, and internal review are conducted. Upon case closure, a standardized 8D corrective-action report is issued, and implementation is tracked to ensure complete resolution.

Weekly and monthly complaint analyses produce anomaly logs and summary reports, enabling traceable, quantifiable, and optimizable complaint management.

A service hotline and a dedicated service email are published to ensure customers can submit concerns.

Enhancing Customer Service Practices

Yiheda focused on systemic remediation of common complaint issues during the reporting period and set a quantitative target for 2024–2025 to achieve a 50% reduction in the number of common issues accounting for 80% of complaints. Measures included forming a dedicated task force, establishing complaint classification standards, compiling improvement logs, piloting solutions in selected departments, conducting phased reviews and rolling out company-wide. The Company met the target as scheduled.

Annual customer satisfaction was 95.23% and complaint rate was 0.331%.

Annual customer satisfaction 95.23%

Complaint rate 0.331% 苏州怡合达自动化科技有限公司 Suzhou Yiheda Automation Technology Co., Ltd.

Awarded "Outstanding Service Supplier"

Safeguarding Customer Information

Yiheda treats customer data as a top-tier asset. Through a robust information governance framework, end-to-end controls, and ongoing staff training, the Company ensures the confidentiality of customer information in storage, transmission, and use, fully upholding the Company’s duty to protect customer privacy.

Structured Protection Framework

The Information Security Management System formally covers sensitive customer data, including business records, contractual terms, and pricing information. A tiered accountability model is in place: the IT Internal Control Department designs and deploys technical safeguards. Department heads supervise data handling within their teams, and all staff with access to customer data must strictly follow protocols.

Secure Data Storage

Storage security combines digital and physical controls. All workstations run mandatory encryption software that automatically secures documents, including those containing customer information. Shared files reside only on designated, classified servers, eliminating unsecured local copies. Highly sensitive materials are centrally archived under strict physical safeguards.

Granular Access Controls

Access to customer data is tightly governed. Systems storing such data enforce strong authentication. Access permissions are promptly adjusted or revoked when roles change. Network activity is continuously monitored. Guest Wi-Fi is fully isolated from internal systems, preventing unauthorized access at both the user and network levels.

Controlled Transmission and Use

Data transfer and usage follow strict rules. Personal USB drives and similar devices are prohibited unless pre-approved for specific roles. Decrypting protected files requires managerial authorization and a documented, justified purpose. Security breaches trigger defined disciplinary actions proportionate to their severity.

Incident Response Readiness

Disaster recovery and business continuity plans underpin a formal incident response protocol. Incidents are promptly detected, contained, and remediated in full compliance with applicable regulations, ensuring formal closure. Regular tabletop and live-fire drills test and sharpen team readiness.

Ongoing Privacy Training

Privacy protection is central to Yiheda's security curriculum. New hires receive mandatory onboarding training, and refresher courses reinforce vigilance across the Company. IT specialists attend advanced training and industry exchanges to sharpen defensive capabilities.

During the reporting period, Yiheda delivered one cybersecurity awareness session and conducted three simulated phishing and breach exercises, with zero confirmed customer data leaks.

Conducted cybersecurity awareness training session 1

Conducted cybersecurity awareness training session

3

Sustainable Supply Chain >>

Yiheda follows a supply chain management philosophy of compliance, green collaboration, and shared responsibility, building an ecosystem that balances environmental compliance, social responsibility, and commercial value, and establishing long-term, responsible supplier partnerships to promote sustainability across the supply chain.

Supply Chain Management System

Supply Chain Risk Management

Yiheda manages supply chain risks in three areas: environmental compliance, quality stability, and delivery assurance.

Environmental compliance: A graded environmental-risk mechanism and risk-based testing are applied; suppliers must pre-report changes to raw materials, processes or production sites; hazardous-substance exceedances are strictly controlled.

Quality control: A closed-loop system for full inspection, corrective improvement and incoming-material defect handling ensures rapid response and remediation.

Delivery assurance: Supplier safety stock, order forecasting, emergency procurement, multi-sourcing and rational order allocation enhance resilience and delivery stability.

On this risk-control foundation, the Company pursue collaboration opportunities. In 2025 we launched the Model Supplier Development Project to improve incoming-material pass rates, stabilize quality and shorten lead times through technical support, management coaching, and process coordination, thereby reducing customer complaints and upgrading the supply chain from passive management to proactive collaboration.

Supplier Evaluation and Admission

Yiheda enforces strict supplier certification and performance assessment, dynamically managing suppliers by delivery, quality, and responsiveness. A tiered admission system is applied: collect and preliminarily review supplier documentation; screen by business qualifications, production capacity and testing equipment; upon passing, conduct on-site audits and sample validation; only suppliers meeting standards advance.

Admitted suppliers are initially register as temporary suppliers. The Company monitors incoming-material pass rate and on-time delivery; Suppliers that meet monthly incoming-material requirements, achieve the pass-rate standard for three consecutive months, and pass a comprehensive evaluation may be promoted to a qualified supplier.

Qualified suppliers must sign cooperation agreements covering quality assurance, collaboration, and social responsibility. Suppliers of products subject to RoHS must also submit a RoHS commitment or sign an environmental agreement.

Supplier Assessment and Exit

Yiheda applies differentiated, dynamic assessments by supplier tier, with tier-specific focus, frequency, and standards.

Temporary suppliers are assessed primarily on incoming-material pass rates and monthly incoming-item requirements. Only after meeting the pass-rate standard for three consecutive months are they eligible for comprehensive evaluation and promotion. Qualified suppliers undergo quarterly and annual reviews. The Company assigns supplier grades and applies differentiated order-allocation policies. Evaluation covers delivery quality and timeliness, price reasonableness and after-sales service.

A clear exit and tier-adjustment mechanism ensures closed-loop management. Substandard incoming materials or failed reviews trigger immediate suspension of transactions and require a corrective-action report. Failure to improve, or repeated assessment failures, results in downgrade to a backup supplier. Qualified suppliers with no transactions for over one year are downgraded. Temporary suppliers that persistently fail to meet qualification standards are similarly downgraded, safeguarding supply chain quality and stability.

Supplier Environmental and Social Responsibility Management

Yiheda integrates environmental requirements across supplier cooperation. The Company requires all suppliers to sign environmental agreements specifying control limits for restricted substances (e.g., lead, cadmium) and to submit annual third-party environmental test reports. Incoming materials undergo dual inspection: XRF screening plus third-party chemical testing. Non-compliant materials are isolated and fully traced to prevent entry into production.

Yiheda incorporates social responsibility into supplier admission and daily management. All suppliers must sign social responsibility agreements. The Company evaluates suppliers on protection of labor rights, production safety, and business integrity, and uses these results in supplier routine management.

Supplier Communication and Training

Yiheda maintains regular supplier communication via quarterly reviews, annual summary meetings and on-site visits to share requirements, improvement priorities and compliance standards; focused discussions address quality, delivery and environmental issues to enable rapid feedback and closed-loop remediation.

Yiheda provides ongoing training on quality management, hazardous-substance and chemical control, and safety management to strengthen supplier compliance and capability. Suppliers with substandard incoming-material pass rates or delivery performance receive targeted corrective coaching and must submit evidence of improvement for re-evaluation.

During the reporting period, we conducted 73 on-site supplier visits, jointly established improvement plans, delivered targeted training, verified results by data comparison, and recognized model suppliers following cross-department review.

CORPORATE GOVERNANCE

Yiheda integrates sustainability across its governance processes. The Company complies with applicable laws and regulations and has established a modern corporate governance system with clearly defined statutory authorities and responsibilities, transparent oversight, and efficient operations.

Sustainable Development

Since establishment, Yiheda has embedded sustainability across business operations and into the core strategy. We prioritize ESG development and, by enhancing the governance framework, defining core ESG strategies, strengthening stakeholder engagement and refining materiality management, professionalize ESG management to drive coordinated economic, social and environmental outcomes and establish a sustainable, mutually beneficial ecosystem with stakeholders.

Sustainable Development System

Decision-making Level	Management Level	Execution Level
Board of Directors		ESG Working GroupFunctional Departments Subsidiaries
Board of Directors	Approves the Company’s ESG direction, strategic objectives and major matters; approves ESG management policies; and reviews the annual ESG report and other significant ESG disclosures.
Strategy and ESG Committee	Recommends ESG strategy, planning, governance and policies; monitors external ESG trends, regulations and material issues; identifies major ESG risks and opportunities and advises management on responses; and reviews ESG disclosures while guiding daily ESG work.
ESG Working Group	Coordinates ESG implementation; drafts and refines policies; manages stakeholder engagement and materiality assessment; oversees data collection and disclosure; and leads internal ESG communication and training.
Functional Departments and Subsidiaries	Establish ESG measures relevant to their operations; conduct stakeholder engagement and respond to stakeholder needs; and support ESG data collection, communication, training and task execution.

Yiheda has integrated ESG performance metrics into executive compensation and applies differentiated rewards and penalties based on annual ESG assessments to incentivize management and ensure orderly, effective ESG implementation.

Yiheda has promoted ESG concepts across all employees and strengthened the integration of corporate governance and ESG management. During the reporting period, the Company organized sustainability-focused training to enable the governance team to accurately grasp the substance of sustainable development issues.

Responding to Sustainable Development Goals

6 CLEAN WATER AND SANITATION

7 AFFORDABLE AND CLEAN ENERGY

• Strengthen environmental management

\- Optimize resource use

• Digital and intelligent transformation

\- Address climate change

\- Ensure product quality

• Prioritize ecological protection

\- Protect customer rights

\- Reduce pollutant emissions

• Responsible supply chain

• Uphold business ethics

• Equal employment opportunity

• Employee training and development

• Remuneration and benefits

• Social welfare activities

• Occupational health and safety

• Support rural revitalization

Stakeholder Engagement

We regard in-depth collaboration with stakeholders as a cornerstone of sustainable development. Based on our business layout and full-value-chain operations, we categorize stakeholder groups and have built a standardized, multi-channel regular engagement system. We dynamically track stakeholders' core concerns and legitimate expectations, integrate those insights into ESG strategy formulation, refine ESG implementation measures, and continuously upgrade our sustainable-development governance capabilities.

Stakeholder	Key Concerns	Communication Channels	Company Actions
Government and Regulators	Tax ComplianceEnvironmental ProtectionSupport for Local Development	Policy BriefingsThematic Meeting BriefingsInformation Submissions	Timely Tax CompliancePromotion of Low-Carbon TransitionSupport for Rural Revitalization
Shareholders and Investors	Sustainable and Stable ReturnsTransparent and Timely Disclosure	Shareholders’ MeetingsInvestor Hotline/EmailInvestor Conferences	Pursuit of High-Quality DevelopmentEnhanced Investor EngagementTransparent Information Disclosure
	Product Safety and QualityPrivacy and Information SecurityR&D and Innovation	Customer VisitsCustomer MeetingsCustomer Satisfaction Surveys	Quality Management System ImprovementInformation Security SafeguardsIncreased R&D InvestmentEnhanced Customer Service
	Training and DevelopmentProtection of Basic RightsHealth and SafetyHuman-Centred Care	Employee Satisfaction SurveysWorkers’ CongressCorporate Culture ActivitiesSite Visits	Diverse Training and Development OpportunitiesImproved Compensation and BenefitsStrengthened Democratic ManagementEnhanced Occupational Health and Safety
	Adherence to Business EthicsHonest and Trustworthy Cooperation	Business Exchanges and CooperationSupplier Training Regular Visits	Strategic CooperationSustainable Supply Chain DevelopmentIndustry–University–Research Collaboration
	Economic Development StimulationParticipation in Community BuildingEmployment PromotionSupport for Vulnerable Groups	Public Welfare and Charity ActivitiesExternal SurveysCommunity Engagement	Priority Local HiringSupport for Public Welfare ActivitiesParticipation in Community Development

Materiality Assessment

Yiheda complies with Shenzhen Stock Exchange Guidelines No.17 and No.3 (2026 revision) and aligns with IFRS Sustainability Disclosure Standards, the GRI Standards and ESRS. Adopting both impact materiality and financial materiality, we perform a double materiality assessment to evaluate sustainability issues' effects on the Company's financial position, the environment and society, and address double-material topics in this report to ensure accurate disclosure of key responsibilities and practices.

Step 1

Step 2

Context Identification

Analyze Yiheda's business, value chain, and geographic footprint to identify relevant legal, policy, and industry standard requirements.

Step 3

Materiality Assessment

\- Impact Materiality: Prioritize topics using stakeholder feedback, combined with scoring from the Board of Directors and external experts.

\- Financial Materiality: Assess topics qualitatively and quantitatively, based on the likelihood and magnitude of financial impacts from related risks.

Materiality Topic Inventory

Materiality to Yiheda's Financial Performance

Based on Yiheda's development stage, business model, and value chain position, build a repository of potential material topics via policy reviews, senior management consultations, peer benchmarking, and expert engagement.

Step 4

Topic Finalization & Reporting

Combine impact and financial materiality assessment results to develop a double materiality matrix and define topic boundaries. Management reviews the assessment outcomes, and the Board approves final topic priorities. The resulting materiality matrix forms the core focus of the current report’s disclosures.

01 Product Quality

01 Product Quality 02 Employee Rights and Interests 03 Technological Innovation 04 Sustainable Supply Chain 05 Environmental Compliance Management 06 Social Contribution 07 Climate Change Mitigation and Adaptation 08 Resource Use Management 09 Waste Management 10 Occupational Health and Safety 11 Anti-Commercial Bribery and Anti-Corruption 12 Anti-Unfair Competition 13 Equal Treatment of SMEs 14 Biodiversity Conservation 15 Technology Ethics 16 Customer Service 17 Sustainable Development Management

Sustainable Development Strategy

Yiheda, based on deep insight into industry development, conducts comprehensive assessments of macroeconomic trends, market supply-demand shifts, the competitive landscape, and internal strengths and weaknesses, and integrates available resources to formulate a robust sustainable development strategy.

Business Vision

To become a global leading one-stop service platform for long-tail manufacturing needs, providing essential support for connectivity across the industrial ecosystem.

Business Mission

Make intelligent manufacturing simpler.

Care for Customers

Customer value is paramount. We are customer-centric, continuously create value, coordinate internally and externally, and grow together.

Core Values

Care for Colleagues

We advocate shared responsibility and collaborative success, fostering team strength through trust and accountability.

Care for Products

Products and services must achieve excellence. We apply rigorous standards across the product and service lifecycle to advance quality, experience and innovation.

Care for Self

We pursue continuous improvement and excellence, believe in better approaches, and drive personal and organizational evolution through ongoing reflection and iteration.

Business Philosophy

Delight Customers

We understand customer expectations and needs, consistently deliver products and services that exceed those expectations, and offer solutions that resonate emotionally.

Ensure Employee Well-Being

We cultivate mutual trust across the organization, build relevant capabilities and know-how, and promote employee growth through targeted training and appropriate empowerment. We provide competitive, steadily increasing compensation, fairly recognize contributions, and share corporate achievements with employees.

Satisfy Shareholders

We generate profit by creating customer value. Returns from customers are allocated to balance value between employees and shareholders. Failure to create value for customers, employees, or shareholders will result in the loss of customers, talent, or capital, respectively.

Earn Social Respect

We recognize that Yiheda is a social institution and a public asset. We focus on social value and actively give back to strengthen the societal foundation that sustains long-term development.

Sustainable Risk Management

After years of practice and continuous improvement, Yiheda has established an effective internal control and risk management system for production and operations, continuously refining policies, strengthening controls and enhancing oversight to improve compliance and risk mitigation.

Risk Management

Risk Management system

Yiheda has implemented a comprehensive risk management framework that clarifies responsibilities at each level and operates under the model of Board oversight; Strategy and ESG Committee leadership; business-unit coordination; and internal audit supervision, ensuring the orderly and effective implementation of risk management.

The Board serves as the highest decision-making body for risk management, responsible for approving risk policies and guidance and for supervising their execution. The Strategy and ESG Committee oversees the execution of risk management in accordance with Board-approved policies, working closely with business units to identify, assess, and manage risks. The Internal Audit Department conducts regular reviews of risk controls and reports findings to the Audit Committee to support continual improvement.

Risk Management Process Yiheda maintains formal risk management procedures and policy documents, periodically assesses market and operational changes, and updates policies and processes to align risk management with business objectives and development.

Risk Management Process

Risk Prevention Training

Yiheda prioritizes risk-prevention capacity building through regulatory training for directors and senior management, and compliance training for middle managers and staff, reinforcing risk awareness and ensuring effective implementation of internal controls.

During the reporting period, the Company held 22 risk prevention training sessions with 471 participants, totaling 25 training hours.

Risk training conducted

22 sessions

Coverage 471 participants

Total duration 25 hours

Internal Control

Yiheda enforces segregation of duties, authorization and approval controls, accounting system controls, budgetary controls and performance appraisal controls. By defining responsibilities, standardizing approval workflows and strengthening end-to-end process controls, the Company continuously improves the effectiveness of internal controls.

Internal Supervision

Yiheda complies with the Basic Norms for Enterprise Internal Control, Application Guidelines for Enterprise Internal Control, Standards for Internal Accounting Control and the Shenzhen Stock Exchange Guidelines for Internal Control of Listed Companies. An internal control supervision structure centered on the Audit Committee ensures effective implementation and full-process oversight. Supporting documents, including the Internal Audit System, clarify supervisory responsibilities, procedures and standards to institutionalize routine supervision.

Responsible for coordinating and overseeing internal and external audits; supervising the establishment and implementation of internal controls; reviewing the annual internal control evaluation report; and reporting to the Board.

Audit Department

Operating under the Audit Committee's guidance, the Internal Audit Department issues the annual audit plan and conducts audits focused on financial transactions, economic activities and compliance with internal control procedures.

Yiheda has established a closed-loop audit rectification tracking mechanism to ensure timely remediation and periodic follow-up of audit findings, thereby ensuring effective implementation of internal controls and the mitigation of major risks.

Sustainable Target Management

Yiheda has embedded sustainable development as a core strategy and established a tiered, measurable, and actionable target management system. The system spans long-, medium- and short-term horizons and covers all functions and management levels to ensure strategic intent is cascaded to operations.

When breaking down and implementing targets, the Company defines implementation paths, allocates resources, assigns responsibilities and deadlines, and prepares risk-response and opportunity plans. We monitor progress through internal audit and management review and dynamically revise targets, in response to internal and external changes, strategic adjustments and system performance.

	Shareholders' meetings held	of which	Annual meeting	Extraordinary meeting
	3 times		1 time	2 times

Corporate Governance >>

Yiheda continuously refines the governance framework and internal control system to ensure compliant operations and stable development. The Company clearly defines shareholders’ rights and obligations, prevents abuse of rights, and safeguards minority investors’ interests.

During the reporting period, Yiheda received the “SSE Eagle Gold Quality 2025 Corporate Governance Award,” underscoring the capital market’s recognition of the Company’s governance standards and sustainability capabilities.

Governance Structure

Yiheda complies with the Company Law of the People's Republic of China, the Securities Law, the Code of Corporate Governance for Listed Companies, the SZSE GEM Listing Rules, SZSE Self-regulatory Guideline No.2 and other applicable laws and continuously improves corporate governance and internal control to enhance governance standardization and professionalism.

The Company has established a governance framework comprising the shareholders' meeting, the Board of Directors, and management, with clear authority and responsibility boundaries and effective checks and balances.

To ensure the governance framework operates efficiently and in an orderly manner, the Company has adopted and continuously refines governance rules, including Rules of Procedure for Board Meetings; Audit Committee Working Rules; Remuneration and Appraisal Committee Working Rules; Strategy and ESG Committee Working Rules; Nomination Committee Working Rules, covering decision-making, execution and supervision and defining procedures and performance requirements to ensure compliance and coordinated action.

Shareholders' Meeting

The shareholders' meeting is the governing body of Yiheda. The Company complies with the CSRC Rules on Shareholders' Meetings and related regulations, ensuring that convening, attendance, voting procedures and results conform to applicable laws and the Articles of Association.

During the reporting period, the Company held three shareholders' meetings (one annual and two extraordinary) and considered 28 proposals.

Board of Directors

The Board reports to the shareholders’ meeting and performs core functions: setting strategy, making decisions and managing risks. Yiheda convened seven Board meetings during the reporting period and approved 63 proposals. Director attendance was 100%.

Independent directors provide decision-making input, oversight and professional advice to safeguard the overall interests of the Company and protect minority shareholders.

Yiheda promotes Board diversity. Nominations prioritize the skills and experience needed for effective Board operation while balancing term structure, gender balance and age to achieve a complementary professional composition. As of the end of the reporting period, the Board comprised eight directors, including three independent directors and two female directors.

The Board has four specialized committees — the Audit Committee; the Strategy and ESG Committee; the Nomination Committee; and the Remuneration and Appraisal Committee— each composed of a majority of independent directors, and each chaired by an independent director. The chair of the Audit Committee has an accounting background to ensure professional oversight.

Board meetings held 7 times

Director attendance rate 100%

During the reporting period, Yiheda received from the China Association of Listed Companies the “2025 Outstanding Practice Case for Listed Company Boards” and the “2025 Outstanding Practice Case for Board Offices,” in recognition of standardized board operations, professional governance practices and efficient board office performance.

Executive Management

Executive Management is responsible for business planning, execution and operational control. The General Manager reports to the Board and, under the Board’s authorization, exercises operational management authority and implements Board decisions.

Protection of Shareholders' Rights and Interests

Yiheda treats the protection of shareholders’ rights as a core priority. In compliance with the Company Law of the People’s Republic of China, the Securities Law, the Guidelines for Investor Relations Management of Listed Companies and the Articles of Association, the Company promotes alignment between intrinsic and market value through standardized investor relations, an institutionalized dividend policy, and high-quality information disclosure, thereby safeguarding the lawful rights of all shareholders, especially minority shareholders, and supporting long-term mutual benefits.

Investor Relations Management

Yiheda has adopted an Investor Relations Management System, appointing the Board Secretary as the responsible officer and the Securities Department as the implementing unit, to establish a systematic and routine investor relations framework that protects investors’ rights to information, participation, expression and supervision.

Yiheda standardizes the convening, holding, and voting procedures for shareholders' meetings and uses both on-site and online voting methods to facilitate minority shareholder participation and ensure the full exercise of voting rights.

Yiheda operates a multi-channel communication platform—the investor relations section on the official website, the “Easy IR Platform”, an investor hotline, and a public email address—supplemented by earnings briefings and investor visits to maintain regular communication, promptly respond to material inquiries, and collect investor feedback on business and management.

Number of investor events held Investor queries answered via Easy IR Platform 253 139

Shareholder Dividends

Yiheda adheres to the business philosophy of “satisfying shareholders.” The Articles of Association set profit-distribution principles and prioritize cash dividends. Through an institutionalized, standardized dividend policy, the Company seeks to be a “growth + return” enterprise and to deliver long-term, stable and sustainable returns to shareholders.

Since listing, Yiheda has maintained continuous dividend payments, with cumulative distributions of RMB 1.096 billion, thereby sharing the results of development with all shareholders.

Approximately RMB 1.096 billion

Information Disclosure

Yiheda adheres to disclosure principles of honesty, accuracy, information symmetry, avoidance of hype, and candor, and has established an Information Disclosure Management Policy that designates the Board Secretary as responsible for disclosure and appoints China Securities Journal; Shanghai Securities News; Securities Times; Securities Daily; and CNINFO as the Company’s disclosure channels.

Yiheda continuously improves disclosure quality, relevance, and transparency to provide investors with sufficient, accurate information for valuation and decision-making.

During the reporting period, Yiheda received an A-level rating in the Shenzhen Stock Exchange information disclosure assessment for the third consecutive year and earned industry honors including the China Association for Public Companies’ “Outstanding Practice Case — 2024 Annual Report Performance Briefing,” the China Securities Journal’s “2024 Golden Disclosure” award, iFinD’s “Top 300 Most Popular Listed Companies,” and the Board Secretary was named among the “Top 300 Most Popular Board Secretaries.”

Adherence to Business Ethics

Yiheda regards adherence to business ethics and compliance as a cornerstone of sustainable development. The Company complies with applicable laws and continuously strengthens the ethics and compliance management system, adopting institutionalized, routine, full-chain governance to prevent corruption, commercial bribery and unfair competition.

During the reporting period, Yiheda recorded no incidents of commercial bribery, embezzlement, or corruption, and no litigation or major administrative penalties related to unfair competition.

Integrity Governance

Yiheda bases integrity governance on a management-system framework and has issued the Integrity Self-Discipline Management Regulations and related policies. Under Board authorization, the Audit Department manages integrity publicity, supervision, complaint intake and audit investigations, enforcing a zero-tolerance stance on commercial bribery, improper benefit transfers, conflicts of interest and irregular related-party transactions.

For high-risk areas, which include sales, procurement and engineering projects, the Company conducts routine risk identification and review, implements targeted controls and improvement plans, and operates a full-chain control mechanism covering source prevention, process control and long-term governance.

The Company embeds integrity requirements in the supply-chain management system by including integrity clauses in the Supplier Cooperation Agreement that prohibit commercial bribery, improper benefit transfers, conflicts of interest, and irregular related-party conduct. Suppliers who breach integrity obligations face contract termination, compensation claims, liquidated damages, and, where criminal conduct is suspected, referral to judicial authorities.

During the reporting period, 517 employees signed the integrity pledge; the signing rate among senior management was 100%; and the inclusion rate of integrity clauses in new supplier agreements reached 100%.

Employees signed integrity pledge 517

Senior management signing rate 100%

Anti-Unfair Competition Management

Yiheda strengthens anti-unfair-competition controls by maintaining a routine risk-review mechanism focused on key areas such as sales, marketing, and procurement. The Company conducts targeted risk inspections and preventive measures for practices such as price manipulation and market division, with the Audit Department supervising implementation.

Reporting and Complaint Management

We encourage company-wide participation in supervision and maintain a standardized reporting, investigation and remediation mechanism. A hotline and reporting email are available, and reporter identities as well as complaint details are kept strictly confidential. Verified reports that result in loss recovery are rewarded in accordance with the Company’s rules.

Business Ethics Culture Building

Yiheda promotes anti-corruption, anti-bribery, and anti-unfair-competition policies to employees and partners through internal emails, noticeboards, and targeted training, embedding compliance awareness throughout the organization. During the reporting period, business-ethics training covered 3,663 participants.

Total Anti-Corruption Training Attendance Total Anti-Corruption Training Sessions

3,663 person-times

Board Participation in Anti-Corruption Training

03

ENVIRONMENTAL RESPONSIBILITY

Practicing Green Development, Safeguarding the Ecological Future. Yiheda integrates environmental responsibility into every aspect of its strategy and operations to establish a systematic environmental management system. With compliance as the baseline and innovation as the driving force, the Company advances energy conservation, resource recycling, and green production, constantly optimizing its energy structure and reducing its environmental footprint to earnestly fulfill its corporate responsibility for ecological protection.

Environmental Resilience Management >>

Yiheda has fully integrated environmental management into the entire production and operations chain. Balancing scientific rigor with practicality in phased environmental goals, it relies on a comprehensive management system to achieve precise, end-to-end control, and strengthens responses to sudden environmental incidents through risk identification and emergency drills. By leveraging systematic environmental monitoring to ensure data authenticity and validity, the Company provides solid support for decision-making. Additionally, regular environmental protection training enhances employee responsibility and professional skills, driving steady improvements in environmental performance.

During the reporting period, Yiheda did not receive any administrative penalties from environmental authorities for environmental violations.

Environmental Management Targets

Through the issuance of the Approval Order for Management Policies and Objectives, Yiheda established the management principles of "energy conservation and emission reduction, environmental protection; people-oriented, safety first; prevention-oriented, comprehensive management; standardized management, continuous improvement," along with annual and medium-to-long-term environmental targets covering wastewater, exhaust emissions, hazardous waste, and noise. These are supported by clear control measures and management systems, with a phased implementation plan and rolling adjustment mechanism to ensure alignment with strategy, policy, and industry best practices. During the reporting period, the Company achieved a 100% attainment rate for its environmental management targets.

During the reporting period,

Environmental management target achievement rate

Environmental Management System

Yiheda has formulated normative documents such as the "EHS Management System" and the "EHS & 5S Control System," establishing a closed-loop environmental management system covering decision-making, execution, supervision, and improvement. Integrating the "process approach," "risk-based thinking," and the "PDCA cycle," the system systematically identifies environmental impacts in key areas like production and the supply chain, proactively addresses risks in high-energy-consumption and high-emission scenarios, and drives closed-loop rectification and iterative upgrades. An EHS Committee and a management structure with clear responsibilities have been established, strictly implementing inspection, evaluation, and reward mechanisms to ensure precise implementation of environmental measures. As of the end of the reporting period, the Company has obtained ISO 14001 Environmental Management System Certification.

EHS Management System Management Commitment

Environmental Risk Management

Yiheda places high priority on environmental risk prevention and control. It has established the "Environmental Risk Identification Management System" to manage risks across the full process—identification, analysis, assessment, monitoring, control, and review. For major and high-risk scenarios, the Company formulated the "Major Environmental Risk Control Plan," defining control objectives, response measures, responsible departments, deadlines, and resource guarantees. This ensures risk control measures are actionable and traceable, effectively preventing and reducing the likelihood of environmental pollution incidents.

In addition, based on regulations and Yiheda's specific risk characteristics, the Company developed the "Emergency Response Plan for Sudden Environmental Incidents" and the "Emergency Response Plan for Environmental Accidents." These plans clearly define the emergency organizational structure, response procedures, mitigation measures, and resource allocation to ensure responses follow established protocols. Concurrently, the Company regularly organizes emergency drills to continuously optimize its response mechanisms and comprehensively enhance capabilities in organizational command, rapid response, and efficient incident resolution.

Scope of Environmental Risk Identification

CASE

Emergency Drill for Sudden Environmental Incidents

In December 2025, Yiheda organized a specialized emergency drill simulating the hazardous waste leak scenario. The drill comprehensively tested the activation, response, and resolution phases of the emergency plan, effectively enhancing all employees' risk prevention awareness and on-site incident response capabilities.

CASE

Environmental Risk Emergency Tabletop Exercise

In December 2025, Suzhou Yiheda organized an environmental emergency tabletop exercise simulating a hazardous waste warehouse cutting fluid leak. This exercise effectively validated the procedures in the "Special Emergency Plan for Hazardous Waste Leaks," tangibly improving the risk assessment, strategy formulation, and coordination capabilities of middle and senior management as well as key personnel under high-pressure scenarios.

Environmental Monitoring Management

Yiheda adheres to an environmental risk monitoring mechanism combining internal and external oversight. Internally, it focuses on medium- and high-risk points, establishing routine monitoring of key environmental factors with real-time data collection, recording, and analysis to ensure timely anomaly detection and rapid response. Externally, the Company regularly commissions third-party agencies to conduct independent sampling and testing, providing objective assessments and verification of emissions, including waste gas, wastewater, and noise. Through comprehensive, multi-tiered monitoring, the Company continuously enhances its early warning and prevention capabilities, building a solid defense for green production and operations.

Internal Environmental Risk Monitoring Mechanism

Environmental Training and Management

Yiheda places great emphasis on enhancing employee environmental literacy and professional competence, striving to internalize environmental concepts and translate them into action. For internal training, it regularly conducts systematic sessions for relevant personnel, focusing on operating procedures, emergency skills, and practical energy conservation measures to strengthen practical capabilities; for external training, the Company selects key personnel to attend specialized industry training and technical seminars to stay abreast of the latest policies, best practices, and innovations, incorporating these insights into internal materials and management optimization. Through the organic integration of internal and external training, the Company effectively strengthens employee environmental awareness and job competence, making environmental protection a voluntary and conscious action for everyone.

During the reporting period, Yiheda conducted a total of 13 internal environmental protection training sessions, reaching 613 employees and totaling 626 training hours.

During the reporting period

Internal environmental protection training sessions

13 times

Employees reached

Total training

613 participant-times

626 hours

Environmental Training and Awareness Campaign in the Cafeteria

Suzhou Yiheda actively practices environmental principles by conducting training for cafeteria staff. Focusing on energy conservation, food waste reduction, and waste sorting, the Company promotes the deep integration of environmental concepts into daily cafeteria operations through systematic communication and practical guidance.

Addressing Climate Change >>

In the face of the severe global climate crisis, Yiheda has established mitigating climate impacts and advancing green, low-carbon transition as strategic priorities. Following the Task Force on Climate—related Financial Disclosures (TCFD) framework, we comprehensively identify and assess potential risks and opportunities posed by climate change to our business. We systematically deploy and implement response measures to continuously enhance our resilience against climate shocks, contributing to global climate governance through concrete actions.

Climate Change Management System

Yiheda is systematically advancing greenhouse gas emission reduction efforts and has established a climate change management system centered on balancing risks and opportunities. Following TCFD recommendations, the system comprehensively identifies physical and transition risks posed by climate change to our business, while capitalizing on opportunities such as clean energy application and energy efficiency improvements. We coordinate low-carbon process upgrades, clean energy substitution, resource recycling, and energy conservation practices to continuously reduce operational carbon intensity, laying a solid foundation for consolidating and expanding our competitive advantage in the low-carbon transition.

Climate Change Risks and Opportunities

Yiheda references the recommendations of the TCFD framework and the SZSE GEM Listing Rules Guide No. 3 – Preparation of Sustainability Reports (2026 Revision). Through policy research, industry benchmarking, and expert consultation, the Company identifies climate-related risks (including transition risks and physical risks) that may affect it and implements effective response measures, integrating climate change risks into the Company’s sustainability management framework and risk management system.

Greenhouse Gas Emissions Management

Yiheda actively responds to the national "Dual Carbon" strategy, conducting independent greenhouse gas inventories to identify and seize emission reduction opportunities. By implementing energy-saving and carbon-reduction measures, it steadily lowers its carbon footprint. Simultaneously, the Company monitors industry carbon accounting standards, continuously improving the accuracy and completeness of emissions statistics, and advances its carbon reduction efforts through scientific, reasonable, and actionable emission reduction pathways.

During the reporting period, Yiheda's total greenhouse gas emissions (Scope 1 and Scope 2) amounted to approximately 10,708.90 tons of mathrm CO _ 2 equivalent, with Scope 1 emissions at 520.15 tons, and Scope 2 emissions at 10,188.75 tons. The greenhouse gas emission intensity was 3.63 metric tons of mathrm CO _ 2 equivalent per million RMB of revenue.

Yiheda's Greenhouse Gas Emissions in 2025 (Unit: tCO _2 e)

Yiheda's Greenhouse Gas Emission Intensity in 2025 (Unit: tCO _2 e / million RMB revenue)

Note: The calculation of greenhouse gas emissions is based on Appendix II of the Guidelines for the Accounting and Reporting of Greenhouse Gas Emissions by Enterprises in Other Industrial Sectors (Trial) issued by the National Development and Reform Commission; the Notice on Strengthening the Management of Greenhouse Gas Emission Reporting for Enterprises in the Power Generation Industry for 2023–2025 issued by the Ministry of Ecology and Environment (MEE); and the Announcement on the Release of 2023 Carbon Dioxide Emission Factors for the Power Sector jointly issued by the MEE and the National Bureau of Statistics.

Resource Utilization Management >>

Yiheda strictly adheres to national laws and regulations, leveraging manufacturing resource endowments and operational characteristics to formulate and refine the "Resource Conservation and Recycling Management System." By clarifying cross-departmental authority and responsibility and refining end-to-end management standards, the Company integrates resource conservation and recycling throughout all aspects of production and operations. Through systematic governance, it drives steady improvements in resource efficiency and the continuous reduction of its environmental footprint.

Principles of Resource Conservation and Recycling Management

Energy Consumption and Management

Yiheda adheres to a green energy strategy balancing "expanding supply" with "reducing consumption." On the "reduction" side, it scientifically schedules equipment operation to minimize idle energy consumption and promotes high-efficiency, energy-saving lighting and appliances to foster a culture of conservation; on the "expanding sources" front, it proactively plans for clean energy alternatives and develops distributed photovoltaic projects to steadily reduce reliance on fossil fuels and build a solid foundation for energy management.

Energy Conservation and Consumption Reduction Management

Relying on frameworks such as the "5S Energy Conservation Provisions" and "Green Office Management Measures," Yiheda focuses on lighting, temperature, and equipment standby modes. Using clear guidelines and penalty mechanisms, it systematically advances the lean implementation of electricity-saving measures. Additionally, the Company coordinates intelligent lighting control systems with the energy efficiency management of office equipment and air conditioning, driving progress through both hardware upgrades and management optimization to create a model of environmentally friendly modern office operations. During the reporting period, the Company's cumulative investment in energy-saving technological upgrades reached RMB 313,000.

Cumulative investment in energy-saving technical upgrades RMB 313,000

Office Area Energy-Saving Guidelines

When leaving work, employees should turn off fans, computer towers, monitor screens, and office lights in their work areas.

\- Turn off non-essential lighting when occupancy is low, adjust lighting to actual needs, and eliminate unnecessary usage to reduce waste.

If you need to leave your desk for more than 30 minutes during working hours, you should proactively turn off the monitor to avoid power consumption.

In any area, the last person to leave is responsible for and obligated to turn off all electrical equipment and lighting in that area.

\- Strictly enforce national regulations on air conditioning temperature control: set indoor air conditioning to no lower than 26°C in summer and no higher than 20°C in winter.

Clean air conditioning filters regularly and perform professional maintenance on the air conditioning system twice a year to ensure efficient operation.

During the transitional seasons of spring and autumn, we encourage opening windows to utilize natural ventilation and reduce air conditioning use.

Penalty Mechanism for Energy Conservation and Consumption Reduction

Penalties for Air Conditioning Violations

Yiheda has established a special penalty mechanism for air conditioning violations, targeting areas where units are not promptly turned off after hours. Violations are recorded and assigned to responsible parties, accompanied by a phased suspension of air conditioning service for the affected area. This rigid mechanism reinforces energy-saving awareness among all employees.

Strengthening Energy Efficiency Management of Equipment and Systems

Suzhou Yiheda has systematically advanced lighting and energy equipment upgrades: replacing fixtures with high-efficiency LEDs to cut consumption by about 60% at equal illuminance; adopting radar-sensor-based zone lighting in parking garages; enforcing Class 1 efficiency standards for office and AC equipment; and optimizing workstation layouts to maximize natural lighting—reducing daytime lighting electricity use and effectively lowering office energy intensity.

Clean Energy Utilization

Yiheda has established distributed photovoltaic power generation projects as the core of its clean energy strategy. By utilizing idle factory rooftops to build green energy facilities under a "self-generation and self-consumption" model, the Company has constructed a green power network covering production and office areas. Through stable clean electricity output, the Company reduces fossil fuel consumption and indirect greenhouse gas emissions from purchased electricity, thereby driving the transition of its energy structure toward low-carbon solutions.

As of the end of the reporting period, Yiheda's cumulative installed capacity of distributed photovoltaic power generation projects reached 0.998 megawatts. During the reporting period, Yiheda's total annual power generation was approximately 1,082.68 megawatt-hours, reducing carbon dioxide emissions by approximately 684.71 tons and saving approximately 327.40 tons of standard coal.

Cumulative installed capacity of completed distributed photovoltaic reached 0.998 MW

Total annual electricity generation 1,082.68 MWh

Reducing carbon dioxide emissions 684.71 tons

Saving standard coal 327.40 tons

Environmental Benefits of Energy Conservation and Emission Reduction from Photovoltaic Power Generation Projects

Note: Calculation factors for CO_ 2 emission reduction were based on the China Regional Power Grid Baseline Emission Factors for Greenhouse Gas Reduction Projects (2024), published by the National Center for Climate Change Strategy and International Cooperation under the Ministry of Ecology and Environment.

Water Resource Use and Management

Yiheda focuses on diverse scenarios, implementing targeted water-saving measures to continuously improve water use efficiency. In production, it prioritizes low-water-consumption, waterless, or water-recycling technical solutions; in daily operations, it strengthens equipment inspections and promotes water-saving fixtures to reduce unnecessary use; additionally, the Company actively utilizes non-conventional water sources. A rainwater collection network has been constructed on-site, where rainwater and reclaimed water are treated for landscape irrigation and road washing, achieving synergistic benefits from rainwater utilization and water recycling.

During the reporting period, the Company's total water consumption was 137,936 tons, with a water consumption intensity of 46.79 tons per million RMB of revenue and water savings of 1,265 tons.

Total water consumption

137,936 tons

Water consumption intensity

46.79 tons/million RMB revenue

Water savings amounted 1,265 tons

CASE

Sanitary Ware Water-Saving Upgrade

During the reporting period, Suzhou Yiheda completed comprehensive upgrade of its sanitary ware, replacing all toilets and urinals with water-saving models, cutting average water consumption per flush by over 40% and significantly reducing domestic water consumption.

Resource Recycling and Reduction Management

Aligned with green and circular economy goals and policies like the "Resource Conservation and Recycling Management System," Yiheda implemented reduction measures for metals, packaging, and cutting fluids across procurement, usage, and recycling. By enhancing process-based sorting and recycling, we increased waste recovery rates, minimized virgin resource consumption, and reduced environmental impact.

In addition, Yiheda promotes paper conservation and paperless operations. By leveraging paperless workflows and IT, we achieved full coverage of digital platforms and completely paperless meetings. We also enforce strict management of necessary printing, requiring double-sided printing and A5 paper to minimize waste at the source. Furthermore, the Company mandates that all office paper be 100% recycled pulp or FSC-certified, ensuring environmentally friendly and fully traceable resource utilization.

Resource Recycling and Reuse Measures

Suzhou Yiheda's Circular Economy Achievements

During the reporting period, Suzhou Yiheda implemented circular economy measures across the entire production process, reducing virgin raw material procurement by approximately 1,500 tons and saving over 5 million RMB in production costs. The comprehensive utilization rate of industrial solid waste reached 96.5%, while the Company achieved a 100% compliance rate for hazardous waste disposal and resource recovery, effectively demonstrating the synergy between efficient resource utilization and green development.

Suzhou Yiheda cut virgin raw material procurement by approx

Saved money in production costs over

1,500 tons

5 million RMB

Paper Conservation and Paperless Office Initiatives

Pollution Prevention and Emission Reduction >>

Yiheda prioritizes pollution prevention and control, focusing on waste, wastewater, waste gas, and noise. We have formulated comprehensive regulations—including the Waste Management Regulations, Industrial Waste Gas Emission Management Regulations, Industrial Wastewater Discharge Management Regulations, and Equipment Noise Management Regulations—to ensure precise, full-lifecycle control of pollution sources. Through refined waste classification, process-based emission reduction, efficient disposal, and routine monitoring, we are committed to strict targets: continuously improving solid waste utilization, ensuring wastewater compliance, keeping air emissions within limits, and maintaining 24/7 noise compliance at the plant boundary, effectively establishing a robust pollution barrier.

During the reporting period, Yiheda's cumulative investment in pollution prevention and control totaled RMB 256,500. Environmental facility synchronization and pollutant monitoring compliance both reached 100% . With no environmental incidents occurring, the Company faced no penalties from authorities nor received any major or collective complaints from local residents, enterprises, institutions, or social groups.

Investment in pollution prevention and control totaling RMB

256,500

Environmental facility synchronization rate 100%

Pollutant monitoring compliance rate 100%

Configuration of Pollution Control Facilities and Process Flow

Waste Management

Yiheda focuses on both production and operational scenarios, categorizing waste into recyclable, hazardous, and non-recyclable types. We implement comprehensive, refined management across control, sorting, storage, and disposal. Specifically, the Administration Department coordinates collection and preliminary processing, while the Supply Chain Department vets recycler qualifications and signs hazardous waste contracts. All departments strictly enforce sorting and storage protocols within their scope, effectively enhancing resource efficiency and environmental risk prevention while significantly reducing environmental impact.

Waste Classification Management System

General Waste

For general waste, production operators must dispose of it directly at designated collection points. Office and public areas are equipped with standardized recycling bins, requiring employees to sort waste correctly per signage. Documents containing confidential information must be shredded before disposal in wastepaper bins. Each department and team is responsible for collecting and organizing waste within their areas, transporting it regularly to the Company’s central waste storage, and entrusting qualified firms for compliant recycling and disposal—ensuring standardized management from collection and transportation through to final disposal.

During the reporting period, Yiheda generated 2,529.97 tons of general waste, averaging 0.86 tons per million in revenue. All 2,529.97 tons were recycled and processed, achieving a 100% recycling and processing rate.

During the reporting period

Generated general waste totaling

2,529.97 tons

Average generation

0.86 tons/million RMB revenue

Cumulative general waste recycled and processed 2,529.97 tons

Recycling and processing rate

100%

Hazardous Waste

Yiheda strictly adheres to the principle of "unified collection, classified disposal, and hazard elimination," establishing a hazardous waste management system covering the entire process from classification and storage to disposal. In the classification stage, hazardous waste packaging must bear standardized labels to ensure clear identification; in the storage stage, waste must be kept in dedicated warehouses equipped with fire protection facilities to prevent leakage and fire risks; in the disposal stage, an inventory control system requires both generating and receiving departments to record key information, while entrusting qualified third-party organizations for compliant collection and disposal—ensuring safe, controlled hazardous waste management.

During the reporting period, Yiheda generated 179.09 tons of hazardous waste, with 0.06 tons of hazardous waste generated per million in revenue. A total of 179.09 metric tons of hazardous waste was properly treated, resulting in a proper disposal rate of 100%.

Generated hazardous waste totaling 179.09 tons

Hazardous waste generation

0.06 tons/million RMB revenue

Hazardous waste properly treated

179.09 tons

Hazardous waste proper disposal rate

100%

Waste Gas Management

Based on the "List of Key Environmental Factors and Control Plans," Yiheda established a tiered waste gas management system with targeted measures, guiding all departments in implementation. For oil mist from production, oil mist collectors installed on equipment ensure compliant fugitive emission control. For dust from grinding and polishing, exhaust hoods or enclosed ductwork collect particulates, which are transported to a dedicated dust removal system; treated gas is then discharged via a high-altitude stack in compliance with standards. Additionally, the Company commissions qualified agencies for annual waste gas monitoring to ensure precise emission control. During the reporting period, the Company's waste gas compliance rate was 100%.

During the reporting period

Waste gas compliance rate

100%

Waste Gas Treatment Equipment

Wastewater Management

Yiheda’s industrial wastewater mainly comes from spray water, ultrasonic cleaning water, and grinding water. Ultrasonic cleaning and grinding water are collected on-site and entrusted to third-party agencies for compliant treatment, while spray water is internally recycled, achieving zero external discharge. Domestic wastewater originates from restrooms, the cafeteria, and dormitories, and is channeled into a sewage tank for tertiary treatment. After maturation and meeting standards, it is discharged periodically in compliance with regulations, effectively mitigating water pollution risks and improving water resource efficiency.

During the reporting period, the Company discharged approximately 93.91 tons of industrial wastewater, averaging 0.03 tons per million in revenue. All 93.91 tons were disposed of in compliance with regulations, achieving a 100% compliance disposal rate.

Industrial wastewater discharge

93.91 tons

Industrial wastewater discharge intensity

0.03 tons/million RMB revenue

Industrial wastewater compliance disposal

93.91 tons

Compliance disposal rate

100%

Industrial Wastewater Pollutant Discharge

Industrial Wastewater Pollutant Discharge Intensity

Noise Management

Noise pollution during production and operations primarily stems from cutting, grinding, air compressors, fans, and temporary generators. In response, Yiheda conducts strict pre-operation inspections and daily maintenance to ensure stable equipment operation and reduce abnormal noise. Where feasible, soundproof doors, windows, and structural renovations are implemented to enhance building insulation. At the same time, strict personal protective measures are enforced to protect occupational health, achieving precise source control and minimizing noise impact. During the reporting period, the noise compliance rate at the Company’s workplaces was 100%.

The noise compliance rate at the workplace

100%

Comprehensive Noise Control at the Air Compressor Station

During the reporting period, Suzhou Yiheda implemented comprehensive noise control at the air compressor station. By replacing standard windows with fixed single-pane soundproof glass, ensuring fire doors remained closed, and installing vibration-damping pads under compressors, Yiheda successfully blocked transmission pathways and reduced noise intensity. Consequently, noise levels dropped significantly, the working environment improved markedly, and noise pollution was effectively mitigated.

Green and Eco-Friendly Production >>

Yiheda consistently prioritizes green and eco-friendly practices as a core operational principle. By selecting eco-friendly materials, embedding green design in R&D, and using technology to advance clean production, we continuously optimize sustainable packaging. We ensure these values run through our entire delivery process to systematically reduce environmental impact. Ultimately, we deliver high-quality products that balance economic and environmental benefits, reflecting our responsibility as an industry leader.

Eco-Friendly Raw Materials

The Company prioritizes eco-friendly materials to minimize toxic substance risks during manufacturing and use. For metals like steel and aluminum, we mandate third-party verification and strictly control substances such as lead and mercury, resolutely preventing hexavalent chromium from entering production. This effectively reduces environmental impact and health threats, driving the continuous upgrade of our products and production toward low-carbon, safety standards.

Environmental Raw Material Testing Standards (Partial List)

SGS

SGS

SGS

Ace 45# Steel RoHS Test Report

Saigang Plate RoHS Test Report

GB 6061 Round Bar RoHS Test Report

Green Design

Yiheda systematically advances green design by adopting standardized, modular approaches to optimize cutting plans and reduce scrap, boosting resource efficiency at the source. We focus on developing lightweight, durable, and recyclable products, while creating clean production processes that enable resource recovery and high-value reuse of waste. By integrating resource and environmental impact assessments throughout development, we ensure the comprehensive implementation of green design.

Clean Production

Yiheda continues to deepen energy-saving and clean production practices. By accelerating the upgrade to high-efficiency equipment and replacing traditional machinery with advanced CNC systems, we effectively reduce material waste and energy consumption. We control pollutants by improving oil mist purification and dust collection systems, managing emissions of harmful gases and particulates. This comprehensively enhances process cleanliness while synergizing environmental optimization with operational efficiency.

Deployment of Workshop Oil Mist Collectors

CASE

During the reporting period, the Company systematically deployed 426 oil mist collectors across production lines. These devices instantly recover, filter, and convert the oil and water mist generated by CNC machines during machining into recycled cutting fluid, achieving precise capture and purification of pollutants while reducing secondary pollution and resource waste.

Introduction of Automatic Cutting Machines in the Shaft Workshop

During the reporting period, the Company vigorously promoted replacing traditional equipment with energy-efficient CNC machinery. In the shaft workshop, automatic cutting machines replaced conventional ones, shifting the process from dry cutting to wet processing with cutting fluid. This eliminates dust pollution at the source and drives the workshop's transition from extensive methods to lean, green manufacturing.

Yiheda has deeply advanced the greening and upgrading of logistics packaging. For core products such as linear modules, FB furnace door drive assemblies, conveyor lines, and robotic water units, heavy-duty cardboard boxes have been fully adopted to replace traditional wooden crates. Leveraging the design advantages of both lightweight construction and high strength, Yiheda has achieved systematic optimization of packaging costs, warehouse space, and transportation expenses, significantly increasing the recycling rate of packaging materials and laying a solid foundation for a green supply chain.

Ecosystem and Biodiversity Protection >>

Yiheda fully implements ecological sustainability goals, adhering to the principle of "balancing development and conservation" through concrete actions. During site selection, we incorporate ecological impact as a core consideration, carefully assessing and mitigating risks; during production, we enforce clean production standards and pollution prevention to minimize our environmental footprint. Furthermore, we actively engage in ecological restoration—such as organizing employee tree-planting—contributing to the recovery and resilience of regional ecosystems.

As of the end of the reporting period, none of the Company’s production and business locations were included in national-level nature reserves or biodiversity priority protection areas, and there were no projects with significant impacts on biodiversity.

During the reporting period, Suzhou Yiheda actively conducted the environmental impact assessment for its smart automated components project. Yiheda classified the initiative as a "strategic emerging industry," showcasing its advanced nature, and successfully passed expert reviews on critical aspects like explosive dust hazards. After compiling the environmental impact report and submitting it to the provincial department, Yiheda demonstrated through concrete actions its commitment to protecting ecosystems and biodiversity.

苏州市发展和改革委员会

关于确认苏州怡合达自动化科技有限公司智能自动化零部件生产项目属于江苏省太湖流域战略性新兴产业类别目录的复函

昆山市发改委：

经商市工信局、市生态环境局，我们对你委报来的关于苏州怡合达自动化科技有限公司智能自动化零部件生产项目属于江苏省太湖流域战略性新兴产业类别目录的认定结论无不同意见。特此函复。

04

SOCIAL RESPONSIBILITY

Upholding our original commitment to responsibility, we work together to build a better society. Yiheda has always regarded social responsibility as a fundamental pillar of our development. Internally, we enhance systems for employee rights, benefits, and career growth to foster a warm, dynamic workplace. Externally, we engage in educational philanthropy, rural revitalization, and public safety to empower regional progress. Through these concrete actions, we convey the Company’s warmth and align corporate and social values.

Walking Hand in Hand with Our Employees >>

Yiheda regards talent as its most solid foundation. In providing basic protections, we strictly adhere to compliance and safety standards, serving as our employees' strongest support; in our growth mechanisms, we create a level playing field, empowering employees through training and employee stock ownership so that those who work hard are rewarded and those who innovate share in the benefits; in our care and management, we listen to the voices of frontline staff, warming hearts through democratic communication and generous benefits, and building a warm and dignified workplace for all employees.

Employee Hiring

Yiheda strictly adheres to applicable laws and regulations and has established a standardized employment system centered on the Recruitment and Hiring Management System, Campus Recruitment Management System, Onboarding Procedures and Management Regulations, and New Employee Probationary Period Management Regulations. We refine talent acquisition mechanisms—covering campus, external, and internal channels—to align with precise job requirements and optimize our talent structure. Upholding equal pay and opportunity, we effectively safeguard the legitimate rights and interests of every employee.

Compliant Hiring

Yiheda strictly defines recruitment red lines in accordance with the "Recruitment and Hiring Management System," resolutely prohibiting the employment of forced, bonded, trafficked, or enslaved labor. We firmly defend human rights, strictly forbid hiring minors under 18, and pledge not to participate in or support child labor. During talent selection, we conduct legal background checks to verify information authenticity, establish scientific qualification standards for job grades, define clear entry requirements for each role, and promptly sign standardized employment contracts to effectively ensure the legality and stability of the employment relationship.

During the reporting period, no cases of child labor or forced labor were identified within the Company, and no strikes or work stoppages occurred. A total of 1,101 new employees were hired, with a labor contract signing rate of 100%.

Newly hired employees 1,101

Labor contract signing rate 100%

Equal Employment

In the recruitment and employment processes, Yiheda strictly prohibits any form of discrimination based on gender, age, race, disability, or other factors. We ensure that all employment decisions are based solely on candidates’ professional skills and work potential, thereby effectively safeguarding employees’ equal employment rights and personal dignity. As of the end of the reporting period, Yiheda had a total workforce of 3,503 employees, including 324 employees from ethnic minority groups, accounting for approximately 9.25%; and 2 employees with disabilities, accounting for approximately 0.06%.

Total number of employees

3,503

Number of ethnic minority employees

324

Number of employees with disabilities

2

Compensation, Benefits, and Performance

Through the implementation of regulations such as the "Compensation Management System" and the "Performance Management System," Yiheda integrates market-competitive compensation incentives, comprehensive welfare benefits, and a clear performance evaluation mechanism. We ensure fair, transparent distribution to recognize employee value, boost belonging with generous benefits, and guide goal achievement via performance objectives. Long-term equity incentives align our shared vision. By sharing development gains and shouldering future missions together, we unite core forces to drive sustainable growth.

Compensation Management

Yiheda has established a differentiated compensation system aligned with market principles and internal fairness. Anchored in production operations and performance targets, the system builds scientific models evaluating knowledge, skills, responsibilities, and contributions to determine fair benchmarks and enforce equal pay for equal work. Through a mechanism linking "value" and "reward," we use performance incentives to energize individuals, boost efficiency and competitiveness, building a solid human capital foundation for continuous innovation and long-term development.

Company Compensation Structure

Employee Benefits

Yiheda places great emphasis on employee care, strictly adhering to national regulations to provide statutory benefits such as statutory holidays, social insurance, and housing provident funds. We also offer diverse supplementary benefits, including holiday and birthday allowances, meal and communication subsidies, education, training, and group activities. Through these concrete actions, we demonstrate deep care for employees and fulfill our social responsibilities, striving to create a "happy workplace." During the reporting period, Yiheda's social insurance coverage rate was 100%.

Social insurance coverage rate

100%

List of Employee Benefits

Funding for Departmental Team-Building Activities.

Performance Management

To leverage the motivational role of evaluations, Yiheda has established the "Performance Management System." This system builds a performance management incentive mechanism that is scientific, fair, efficient, and precise in its evaluations, thereby creating a closed-loop management cycle encompassing "goal setting—results evaluation—feedback interviews—application of results." By scientifically assessing and incentivizing contributions, the Company effectively safeguards employee rights and earnestly fulfills its "people-oriented" corporate social responsibility commitment.

Performance Appraisal

Yiheda has implemented a core evaluation model integrating assessment and appraisal to provide comprehensive annual performance ratings. This system objectively measures value contributions across goal acceptance, achievement, process, and overall performance. Appraisal results serve as a critical basis for HR decisions—including bonuses, salary adjustments, promotions, and annual awards—helping employees clarify development paths and empowering continuous organizational optimization.

During the reporting period, employee performance appraisal coverage reached 100%, ensuring fair assessment and positive recognition of every employee's contribution.

Employee performance evaluation coverage reached 100%

Dimensions of Individual Performance Evaluation

Individual Performance Rating Guidelines

Performance Feedback and Appeals

Yiheda promotes a culture of open, two-way communication and is committed to establishing regular performance feedback and appeal mechanisms. During feedback, the direct supervisor meets with the employee to discuss results, identifying strengths and areas for improvement. A "Performance Feedback Interview Record Form" is completed and submitted to the Human Resources Center for record-keeping. Employees requiring improvement will enter a Performance Improvement Support Plan, where the direct supervisor assists in developing a "Performance Improvement Plan (PIP)" and tracks its effectiveness to help the employee address weaknesses and enhance capabilities.

In the performance appeal process, employees disagreeing with results may submit a written appeal via designated channels (such as the HR Business Partner) within the specified timeframe. The Company will promptly initiate a review and provide timely, transparent feedback on the outcome, effectively safeguarding the employee’s rights to know, participate, and be heard throughout the evaluation process.

Key Steps in Individual Performance Reviews

绩效反馈面谈记录表

绩效改善计划(PIP)

Performance Feedback Interview Record Form

Performance Improvement Plan (PIP)

Equity Incentives

To enhance cohesion, Yiheda has launched a stock incentive plan for senior management, key technical (business) personnel, and other individuals identified by the Board of Directors as requiring incentives. During the reporting period, the 2025 Restricted Stock Incentive Plan was announced, granting 6.29 million shares of restricted stock to 90 participants—approximately 1.00% of the total share capital of 634,202,712 shares at the time of the draft announcement. By leveraging profit-sharing to unlock team potential, the Company aims to translate talent advantages into core competitiveness for its leapfrog development.

Granting restricted stock to 90 incentive recipients

6.29 million shares

Employee Care

Yiheda continues to strengthen its commitment to employee well-being. By establishing the Cultural and Sports Association Management Regulations, it consistently fosters innovation within the associations. The Company organizes events such as the "Yiheda Cup" badminton and basketball tournaments, themed annual gatherings, Women's Day care, and Qixi Festival social events—all aimed at enhancing happiness and belonging. Simultaneously, for employees facing illness or financial hardship, the Company immediately activates assistance mechanisms pooling company funds and staff donations, ensuring the Company serves as a solid support system in times of need.

As of the end of the reporting period, Yiheda had provided assistance to four employees and their family members affected by illness, with total aid reaching roughly RMB 126,100.

Cumulative assistance to ill employees and their families Cumulative assistance amount RMB

126,100

CASE

Caring for Female Employees

In March 2025, Yiheda took the occasion of International Women's Day to extend sincere holiday greetings and present carefully selected gifts to all female employees. Through these concrete actions, the Company demonstrated its tribute to and empowerment of women, continuing to foster a workplace environment where every female employee can shine and realize her full potential.

YHD Annual Gathering

In January 2025, Yiheda hosted its annual gathering and 2025 YHD Family Day, inviting employees' family members to share in the Company's achievements alongside staff. This strengthened both employees' and families' sense of identification and belonging, infusing the Company's development with a warm and steadfast driving force.

Democratic Management

Yiheda actively builds an open, diverse democratic management platform. Utilizing online channels such as the corporate WeChat official account, internal broadcasts, and corporate publications, as well as offline channels like the Employee Representative Assembly, we have established a comprehensive feedback mechanism covering production, technology, management, culture, and daily life. We listen attentively and address employee suggestions to foster an open, inclusive environment. During the reporting period, one Employee Representative Assembly was held.

Number of Employee Representative Assemblies held 1 time

"Executive Mailbox" Employee Feedback Channel

Yiheda has launched an employee feedback channel, allowing all staff to submit improvement suggestions or raise concerns anytime via the "Executive Mailbox" module on our WeChat official account, "Yiheda: With You Every Step of the Way." This ensures convenient access to participation and oversight rights, contributing to the continuous optimization of corporate management.

New Employee Academy - Pre-job Empowerment

Employee Development

Yiheda prioritizes employee growth, establishing a comprehensive training system and promotion pathways to create a platform that empowers employees to advance and grow in multiple dimensions. We systematically build an organizational empowerment ecosystem characterized by warmth, precision, and depth, making employee growth visible and aligning the pursuit of personal value with the Company’s shared vision.

Training and Empowerment

Guided by the Training Management Regulations, Yiheda has established a dual-track development model combining "internal training and external training" to continuously build a high-caliber professional team and empower employees to grow in tandem with the Company.

Regarding the internal training system, Yiheda leverages the "Yixuetang" online learning platform to establish a comprehensive development framework that spans onboarding orientation, pre-job training, on-the-job training during the probationary period, and continuous improvement after confirmation of employment. Building on this, we implement tiered and categorized strategies through the Leadership, Professional, General Competency, and New Employee Academies to tailor growth paths and curricula. Furthermore, the Company emphasizes the "self-sustaining" role of internal trainers; through systematic selection, development, certification, and incentives, we fully leverage their ability to distill experience, deliver training, and mentor talent, thereby continuously energizing the organization's evolutionary momentum.

Regarding external collaborative training, Yiheda focuses on cutting-edge insights and core skills, inviting industry experts and senior mentors to conduct in-house training on common competencies. We also support employees in customized external programs, fully covering associated costs to eliminate educational concerns. Furthermore, mechanisms are established to internalize external knowledge, ensuring high-quality experiences feed back into team practices to achieve a multiplier effect where "one person trains, everyone benefits."

During the reporting period, Yiheda's cumulative investment in vocational training totaled RMB 5.7322 million, with 336 new online courses added; 118 employee training sessions were conducted, reaching a cumulative total of 25,569 participants, with a cumulative training duration of 28,273.38 hours, and an average training duration per employee of approximately 7.30 hours.

Investment in vocational training RMB

5.7322 million

Number of new online courses

336 items

Number of employee training sessions conducted

118 times

Training coverage

25,569 participant-times

Cumulative training duration 28,273.38 hours

Average training duration

7.30 hours/person

Social Recruitment Experts, Social Recruitment Newcomers, Campus Recruits

Curriculum System

Instructor System

Course Library

Case Library

Selection and Certification

Operation System

Management and Assessment

Talent Growth Map

Experience Extraction

Empowerment and Incentives

Mechanism

[YiXuetang] Online Learning Platform

Inauguration of "Yixuetang"

In June 2025, Yiheda’s talent development base, "Yixuetang," was officially inaugurated. By establishing comprehensive curriculum, instructor, and operational frameworks, the platform has established four academic divisions: Leadership, Professional Competence, General Competence, and New Employee Development. This drives the synergistic advancement of "talent growth, cultural consensus, and strategic implementation," deeply integrating talent development with business needs to ensure the process is "visible, replicable, and sustainable."

CASE

Hosting the First Instructor Certification Event

In September 2025, Yiheda held its first inaugural instructor certification event, selecting and certifying the first cohort of 86 internal instructors. A four-tier honor system—Founder-level, Senior, Intermediate, and Junior—was established. Through an award ceremony and appointments, certification was completed, continuously strengthening the internal training team and laying a solid talent foundation for the Company’s strategic implementation.

Career Development

Yiheda has established career development pathways covering management, professional, and operational tracks, while building corresponding talent pools. From a full-cycle perspective, we plan growth trajectories, customize training programs, and match practical opportunities to precisely accelerate high-potential talent advancement; meanwhile, we regularly promote internal competitive selection based on "merit-based promotion and demotion" to stimulate talent mobility. This allows employees across different tracks to discover opportunities and break through bottlenecks through fair competition, paving a clear path for their career development.

Internal Competition for Product Manager

During the reporting period, Yiheda organized an internal competition for product manager positions within the Machining Comprehensive Business Division. The initiative sought to recruit versatile leaders capable of driving product iteration, leading operations, and integrating the supply chain. These leaders were granted exclusive decision-making authority, profit-linked incentives, and career safeguards to open up clear advancement pathways for employees.

Occupational Health and Safety

Yiheda consistently prioritizes employee occupational health and safety, having established a systematic framework centered on the "EHS Management System" and "EHS & 5S Control System." Based on this, the Company defines clear objectives and, through the EHS Committee, fully implements safety production and health control requirements. We systematically enhance EHS awareness among all employees, reinforce the safety responsibility chain, and create a healthy, safe work environment. As of the end of the reporting period, the Company has obtained ISO 45001 certification.

EHS Committee Responsibilities and Authority

Work Safety Management

Yiheda adheres to the work safety policy of "Safety First, Prevention First," systematically establishing regulations such as the "Work Safety Management System" and "Accident Hazard Identification and Rectification System" to build a scientific institutional defense. At the organizational level, a Work Safety Leadership Group led by the General Manager and departmental teams headed by managers ensure responsibilities are firmly implemented at every level. Based on this, the Company strictly enforces safety measures, conducts routine inspections, establishes a long-term hazard rectification mechanism, and strengthens closed-loop management and dynamic supervision to effectively safeguard employees and company assets.

During the reporting period, Yiheda's total investment in work safety amounted to RMB 1.723 million, accounting for 0.06% of operating revenue. One work safety standardization project was implemented, with zero major fire (or explosion) incidents and zero work-related fatalities. A total of 284 safety hazards were identified, with a 100% rectification rate.

Total investment in work safety RMB 1.723 million

Ratio of work safety investment to operating revenue 0.06%

Number of work-related fatalities

Establishment safety standardization project

1

Number of identified safety hazards 284 items

Safety hazard rectification rate 100%

Work Safety Principles

Safety first, prevention foremost.

Those responsible for production must also be responsible for safety; the principle of "whoever is in charge is responsible" applies.

Workplace safety is everyone's responsibility. We require comprehensive safety management covering all employees, all processes, and all aspects.

The "Five Simultaneities" Principle: When planning, arranging, inspecting, summarizing, and evaluating production, safety work must be planned, arranged, inspected, summarized, and evaluated simultaneously.

The "Three Simultaneities" Principle: In new construction, renovation, expansion, and technical renovation projects, occupational safety and health facilities must be designed, constructed, and put into operation simultaneously with the main project.

The "Four No-Let-Ups" Principle: In accident investigation and handling, the following must be met: (1) Do not let the matter rest until the cause is clearly identified; (2) Do not let the matter rest until responsible parties and staff have been educated; (3) Do not let the matter rest until effective preventive measures are implemented; (4) Do not let the matter rest until those responsible have been duly disciplined.

Identification and Rectification of Safety Hazards

In accordance with the "Occupational Health and Safety Management System" and the "Employee Health and Female Worker Protection Management System," Yiheda established an Occupational Health and Safety Management Leading Group, led by the General Manager with daily management handled by the Administration Department. The group systematically carries out early prevention of hazards, labor employment and health examinations, workplace management, occupational disease diagnosis, and health education; meanwhile, the Company places special emphasis on female employees' occupational health. It adds specialized examinations for female workers and provides specific care during designated life stages in accordance with regulations, effectively safeguarding the occupational health rights and interests of all employees.

During the reporting period, Yiheda's work-related injury incidence rate decreased by 34% year-over-year, with zero new cases of occupational disease reported; employee health record coverage reached 100% , occupational health examination coverage reached 100% , and the provision and compliance rate of personal protective equipment (PPE) reached 100% .

Year-over-Year decrease in work-related injury incidence rate

34%

Employee health record coverage

100%

Occupational health examination coverage

Number of new occupational disease cases

100%

Provision and compliance rate of personal protective equipment

100%

Occupational Health Examination Guidelines

During the reporting period, Suzhou Yiheda vigorously advanced its 6S management initiatives, continuously improving on-site management and environmental order. Yiheda’s overall work environment has seen steady improvement, effectively reducing adverse impacts on occupational health—such as dust accumulation, noise interference, and cluttered storage—to ensure safe production on the front lines.

CASE

"Dual-Mode" Promotion Plan for Employee Hearing Protection

During the reporting period, Suzhou Yiheda established a "Hearing Protection Selection Corner" offering hands-on trials and interactive training in simulated scenarios, while implementing a long-term mechanism for team leaders to conduct "comfort inspections." As a result, the rate of proper ear protection usage among employees in high-noise positions significantly improved, and no new suspected cases of occupational noise-induced hearing loss were identified during annual screenings, effectively safeguarding the occupational health of frontline employees.

Health and Safety Training

In accordance with the "Work Safety Education and Training Management System," Yiheda has established a tiered and categorized training mechanism, systematically planning content and implementation pathways. It conducts diverse health and safety programs targeting specific groups, including managers, all employees, and new hires; additionally, the Company aligns training with the specific hazard characteristics of each section and post, prioritizing practical exercises such as proper use of protective equipment and emergency response. This helps employees master core skills in safety analysis, decision-making, and occupational health management, effectively preventing production safety accidents and occupational health risks.

During the reporting period, Yiheda conducted a total of 26 occupational health and safety training sessions, reaching approximately 5,300 participants. The total training duration amounted to approximately 9,800 hours, with an average of about 2.80 hours per person, achieving a training coverage rate of 100%.

Conduct cumulative occupational health and safety training activities

26 times

Cumulative coverage

Cumulative training duration 9,800 hours

5,300 participant-times

Average training duration 2.80 hours/person

Training coverage rate 100%

Company Safety Training and Education Mechanism

培训签到记录表

1、何为高温：

1、何为高温： 高温天气（指地市级以上气象主管部门所属气象台站向公众发布的日最高气温35℃以上的天气。气温以地市级以上气象主管部门所属气象台站发布为准。

2、何为中暑：根据GBZ41《职业性中暑诊断标准》，职业性中暑是在高温作业环境下，由于热平衡和(或)水盐代谢紊乱而引起的以中枢神经系统和(或)心血管障碍为主要表现的急性疾病。

3、中暑分级与急救措施：

3.1 中暑先兆：

3.1 中暑先兆： 出现头昏头痛、口渴多汗、全身疲乏、心悸，注意力不集中、动作不协调等症状，体温正常或略有升高。

急救措施：及时转移到阴凉通风处，补充水和盐分，并予以密切观察。短时间内即可恢复。3.2轻度中暑：

3.2 轻度中着：面色潮红，胸闷，有面色苍白，恶心、呕吐、大汗、皮肤湿冷，体温升高至38.5℃以上，血压下降。

急救措施：迅速脱离高温现场，到通风阴凉处休息；给予含盐清凉饮料及对症处理。如及时处理，往往可于数小时内恢复。

3.3 重度中暑： 3.3.1 热射病：亦称中暑性高热，其特点是在高温环境中突然发病，体温高达40℃以上，疾病 且期大量出汗，继之“无汗”，可伴有皮肤干热及不同程度的意识障碍等。

3.3.2 热痉挛：主要表现为明显的肌痉挛，伴有收缩痛。好发于活动较多的四肢肌肉及腹肌等，尤以胸胀肌为蒂。常呈对称性，时而发作，时而缓解。患者意识清，体温一般正常。

尤以肺肠肌为著。常呈对称性。时而发作，时而缓解。患者意识消；体温一般见带。 3.3.3 热衰竭：起病迅速，主要临床表现为头昏、头痛、多汗、口渴、恶心、呕吐，继而皮肤湿冷、血压下降、心律紊乱、轻度脱水，体温稍高或正常。

冷、血压下降、心休紊乱、程度脱水，体温稍弱。急救措施：迅速将中暑者移至凉快通风处，脱去或解松衣服，使患者平卧休息，给患者喝含盐清凉饮料或含食盐0.1%\~0.3%的凉开水，用凉水或酒精擦身，若情况严重时，应及时将病人送往医院并通知主管领导。

4、常见中暑原因：除了高温、烈日曝晒外，工作强度过大、时间过长、睡眠不足、过度疲劳、工作中出汗过多，饮水不足，补盐不够等均为常见的诱因。

5.1为预防“空调病”的发生，一定要经常开窗换气，最好在开机1至3小时后关机；要多利用自然风降低室内温度。室温最好定在25至27℃左右，室内外温差不要超过7℃。另外，有空调的房间应注意保持清洁卫生，办公桌不要安排在冷风直吹处。

5.2 长时间处在高温环境下的工作人员必须学会自我保护，避免长时间的体力透支，要不断补充流失的水分，多喝盐开水，并要少量多次地喝；同时最好随身携带一些防暑药品以备不时之需；一旦出现了中毒现象，要及时将患者转移到阴凉通风和空气新鲜的地方休息，保持安静与畅通呼

Specialized Heatstroke Prevention and Cooling Training

职业危害培训考试试题

姓名薛惠惠得分：

一、选择题（共10题，每题4分，共40分）

1、《职业病防治法》于( B )起正式施行。

A、2001年11月1日；B、2002年5月1日；C、

2002年5月12日。

2、用人单位及其作业场所符合相关规定，并取得(C)，方可从事使用有毒物品的作业。A、生产许可证；B安全生产许可证；C、职业卫生安全许可证。

3、用人单位应当在产生严重职业病危害因素的作业岗位的醒目位置，设置(B)和中文警示说明。A、公告栏；B、警示标识；C、安全标语

4、作业场所操作人员每天在连续接触噪声8小时，噪声声级限值为( C )dB A、115； B、75； C、85。

5、劳动者离开用人单位时，(C)本人的健康档案。

A、有权索取 B、无权索取 C、有权要求复印 D、无权要求复印

6. 可吸入性粉尘的粒径为(B)

A、1-5毫米 B、1-5微米 C、1-5纳米 D、1-5厘米

7. 生产性噪声不包括(D)。

A、空气动力噪声 B、机械噪声 C、电磁噪声 D、空气传播噪声

8、职业病指(B)

A、劳动者在工作中所患的疾病 B、用人单位的劳动者在职业活动中，因接触粉尘、放射性物质和其他有毒、有害物质等因素而引起的疾病 C、工人在劳动过程中因接触粉尘、有毒、有害物质而引起的疾病 D、工人在职业活动中引起的疾病

9、室温超过( )相对湿度超过( )的作业场所，称之为高温作业场所。

A. 30 circ mathrm C,80% B. 35 circ mathrm C,80% C. 35 circ mathrm C,85% D. 30 circ mathrm C,85%

10、粉尘作业时必须佩戴(B)。

A棉纱口罩 B防尘口罩 C防毒面具

二、判断题（共10题，每题4分，共40分）

Occupational Health Training Assessment

Improving Emergency Response Capabilities

In accordance with the "Emergency Preparedness and Response Plan" and "Emergency Rescue Plan and Drill Regulations," Yiheda established an Emergency Rescue Command Center comprising five specialized teams, forming a unified command system with clear division of labor and efficient coordination; targeting common accident types such as fires, major workplace injuries, falls, electrocution, floods, poisoning, and heatstroke, the Company formulated specialized plans detailing responsibilities and response procedures by level, ensuring comprehensive risk coverage and precise implementation of response measures.

During the reporting period, Yiheda conducted a total of three emergency drills, involving 3,200 employee participants. These drills effectively strengthened employee risk awareness and emergency response capabilities, ensuring personnel safety and stable operations.

Three-Tier Emergency Response Classification

Fire Emergency Response Plan Tabletop Exercise

In December 2025, Suzhou Yiheda organized a tabletop exercise for its fire emergency response plan. Through scenario simulations and process drills, the exercise effectively enhanced employees' fire prevention awareness, systematically tested the scientific validity and practicality of the plan, and laid a solid foundation for real-world emergency response by accumulating experience.

Building a Better Society >>

Yiheda remains true to its founding mission of "giving back to society and promoting shared development." Through diversified philanthropic investments, it contributes to social welfare; leveraging strong business performance and innovation, it empowers local development; and by utilizing its resources, it comprehensively serves societal needs. This ensures responsibility and compassion become the Company's hallmark, achieving a symbiosis between corporate growth and social value.

Deepening Our Commitment to Public Welfare

Yiheda continues to deepen its commitment to public welfare, using the "Yiheda Foundation" as its core vehicle to convey warmth and positive energy. In education, it focuses on poverty alleviation, assistance, and incentives, initiating the "Dongguan Hengli Community Development Foundation Education Development Special Fund" to lay a solid foundation for high-quality educational development in Hengli Town; in public safety, it donated the Hengli Firefighter Care Fund to the "Dongguan Hengli Charity Foundation," providing targeted support for firefighters and their families to help improve the local fire safety system.

During the reporting period, Yiheda's total charitable donations amounted to RMB 1.55 million, including the initial installment of RMB 1.5 million for the "Dongguan Hengli Community Development Foundation Education Development Special Fund" and RMB 50,000 for the Hengli Firefighter Care Fund.

Cumulative charitable donations totaling RMB 1.55 million

CASE

Deepening Commitment to Educational Philanthropy, Illuminating the Light of Hope

Yiheda donated RMB 5 million to the Dongguan Hengli Community Development Foundation to establish the "Education Development Special Fund" and was awarded the honorary "Commemorative Plaque for Caring Enterprises that Respect Teachers and Value Education." During the reporting period, the Company completed the first installment disbursement of RMB 1.5 million for this fund, taking concrete actions to advance regional educational philanthropy.

Dedicated to Safety Philanthropy, Conveying a Spirit of Protection

During the reporting period, Yiheda donated RMB 50,000 to the Dongguan Hengli Charity Foundation's Fire Rescue Care Fund, designated to assist firefighters and rescue personnel killed in action, disabled, or seriously ill, as well as their families. The Company was awarded the "Loving Support, Jointly Safeguarding Fire Services" certificate of honor, fully demonstrating its commitment to public safety philanthropy and social integrity.

Empowering Regional Development

Adhering to the development philosophy of "mutual growth and shared prosperity with the region," Yiheda has not only achieved outstanding operational performance and steadily increased revenue but also provided stable tax revenue to local finances. By continuously creating new jobs, the Company has effectively alleviated regional employment pressure, contributing to stable employment and improved livelihoods, thereby ensuring that the fruits of development benefit the local community.

Building on this foundation, Yiheda has established a long-term partnership and co-development mechanism with the Cunwei Joint Economic Cooperative in Hengli Town. By providing targeted support across the dimensions of "industry, talent, culture, ecology, and organization," the Company transforms its development momentum into a powerful driving force for rural prosperity, helping to build a beautiful, livable, and business-friendly rural community.

During the reporting period, Yiheda paid a total of RMB 272.3601 million in taxes and created over 1,000 new jobs, demonstrating the corporate strength driving high-quality regional development.

Cumulative tax payment amount RMB 272.3601 million

Number of new jobs created over 1,000

荣誉证书

东莞怡合达自动化股份有限公司： 荣列 2025 年广东省制造业企业 500 强第 170 位。 特颁此证。

2024年度 横沥镇效益贡献奖

东莞怡合达自动化股份有限公司

2025年东莞市 民营工业企业100强

东莞市民营企业和企业家遴选工作组委会

2025年11月1日

2024年度 横沥镇主营业务收入 前20名企业

Honor: "2024 Hengli Town Economic Contribution Award"

Honor: "Top 20 in Main Business Revenue in Hengli Town for 2024"

CASE

Practicing Village-Enterprise Partnership to Illuminate the Path to Revitalization

During the reporting period, Yiheda signed a village-enterprise partnership framework agreement with the Cunwei Joint-Stock Economic Cooperative in Hengli Town, Dongguan City. By adopting a multi-dimensional approach and coordinating resources, the Company provided comprehensive support to its partner, using diverse measures to stimulate the endogenous momentum of rural revitalization.

东莞市“千企帮千镇 万企兴万村”行动村企结对共建框架协议 （参考模板）

甲方（企业）：东莞怡合达自动化股份有限公司 法定代表人：金立国 地址：村尾村桃园二路33号 联系电话：18938271777

乙方（村/社区）：东莞市横沥镇村尾股份经济联合社 负责人：叶茂权 地址：村尾村德兴路118号 联系电话：13602378102

为全面贯彻党的二十大精神和习近平总书记视察广东重要讲话、重要指示精神。认真落实省委、市委关于实施“百县千镇万村高质量发展工程”的部署，根据《关于印发〈广东省“千企帮千镇 万企兴万村”行动提升方案〉的通知》《关于印发〈广东省民营企业“万企兴万村”行动实施方案〉的通知》《关于印发〈广东省属企

SUSTAINABLE DEVELOPMENT KEYPERFOR MANCE INDICATORS

INDUSTRY DEVELOPMENT

CORPORATE GOVERNANCE

ENVIRONMENTAL RESPONSIBILITY

i) The conversion of energy consumption into standard coal equivalent references the General Principles for Calculation of Comprehensive Energy Consumption(GB/T 2589-2008) issued by the State Administration for Market Regulation (SAMR) and the Standardization Administration of the People's Republic of China (SAC); ii) The calculation factor for CO times emission reductions from photovoltaic power generation in 2025 references the 2024 Baseline Emission Factors for Regional Power Grids in China, published by the National Center for Climate Change Strategy and International Cooperation (NCSC) under the Ministry of Ecology and Environment (MEE); iii) The national average coal consumption rate for thermal power supply in 2024 references the Annual Development Report of the Power Industry (2025), released by the China Electricity Council (CEC);

iv) Scope 1 greenhouse gas emissions include direct emissions from gasoline, diesel, and natural gas; the calculation of greenhouse gas emissions references the Guidelines for Accounting and Reporting of Greenhouse Gas Emissions for Enterprises in Other Industrial Sectors (Trial) issued by the National Development and Reform Commission (NDRC), as well as the Notice on Managing Greenhouse Gas Emission Reports of Enterprises in the Power Generation Sector for 2023–2025 issued by the Ministry of Ecology and Environment (MEE);

v) Scope 2 greenhouse gas emissions include indirect emissions from purchased electricity; the calculation factor for Scope 2 greenhouse gas emissions references the Announcement on Releasing the 2023 Power Sector CO₂ Emission Factors, issued by the Ministry of Ecology and Environment (MEE) and the National Bureau of Statistics (NBS), adopting the 2023 power sector CO₂ emission factor.

SOCIAL RESPONSIBILITY

SUSTAINABILITY REPORTING TOPIC INDEX

Referenced Standards

Shenzhen Stock Exchange Listed Company Self-regulatory Guideline No.3 — Preparation of Sustainability Reports (2026 Revision); Shenzhen Stock Exchange Listed Company Self-regulatory Guideline No.17 — Sustainability Report (Trial).

2025

Dongguan Yiheda Automation Co., Ltd. Sustainability Report