江波龙：2025年度环境、社会与公司治理（ESG）报告（英文版）

2025 Environmental, Social and Governance (ESG) Report

CONTENTS

About this Report03

About Longsys04

2025 Key Performance07

10 Longsys Honors

12 Message from the Chairman

2025 Milestones08

13 Double Materiality Assessment

75 Appendix

ESG Content Index75

76 ESG Policies and Regulations List

Strengthening the Foundation, Facilitating Stable Growth

Sound Governance System17

Sustainable Development 19 Management

Sound and Compliant 20 Operations

Strengthening Information23 Security

78 ESG Data Indicators Performance Table

Advancing Technology, Enhancing Quality

Feature: System Integration 27 Innovation Drives Storage Value Evolution - High- Speed Storage Media mSSD

Innovation-Driven 30 Development

Driving Green Operations, Shaping a Low-Carbon Future

Crafting Excellence with 35 Dedication

High-Quality Customer 40 Service

44 Climate Change Response

46 Environmental Management

48 Green Operations

Growing Together, Pioneering the Future

54 Protecting Employee Rights

58 Promoting Employee Development

60 Strengthening the Safety Barrier

Collaborating to Create, Coexisting to Thrive

69 Sustainable Supply Chain

72 Collaborating for Industry Development

74 Building a Better Community

About this Report

Shenzhen Longsys Electronics Co., Ltd. (hereinafter referred to as "Longsys", the "Company", or "we") has prepared this Environmental, Social, and Governance (ESG) Report ("this report") to provide stakeholders with transparent and comprehensive disclosure of our Environmental, Social, and Governance (ESG) policies, practices, and performance. This report has been compiled in accordance with relevant domestic and international ESG reporting standards and regulatory requirements.

Reporting Standards

This report has been prepared in accordance with the Self-Re ulation Guidance No. 17 for Listed Companies - Sustainability Report (Trial) issued by the Shenzhen Stock Exchange ("SZSE"). It also draws reference from the United Nations Sustainable Development Goals (UNSDGs) and seeks to align with prevailing ESG disclosure standards adopted by industry peers.

Reporting Scope

This report covers Shenzhen Longsys Electronics Co., Ltd. (Stock Code: 301308) and its subsidiaries. The scope of disclosures in this report is consistent with that of the Company's Annual Report. This is an annual report covering the Company's sustainability-related matters for the period from January 1, 2025 to December 31, 2025 (referred to as "this year", "reporting year" or "reporting period") as well as activities within the Company during the year of publication. Certain information may refer to previous years or extends forward to April 2026 where relevant. Unless otherwise specified, all monetary figures in this report are denominated in Renminbi (RMB).

Definitions

For ease of reference, the terms "Longsys", the "Company", and "we" in this report collectively refer to "Shenzhen Longsys Electronics Co., Ltd. and its subsidiaries as a whole".

Sources of Information

The content and data disclosed in this report are both derived from the Company's internal statistical records, oficial documents, financial statements, and publicly available sources. All information has been provided by the Company's employees and business partners and is intended solely for the purpose of disclosing the Company's sustainability performance. It is not intended for commercial use. In the event of any discrepancies between the information presented in this report and the Company's 2025 Annual Report, the Annual Report shall prevail.

Reporting Principles

This report has been prepared in accordance with the principles of materiality, quantifiability, balance, and consistency. It responds to and addresses the concerns of stakeholders, applies industryrecognized ESG disclosure standards, and incorporates quantitative data to report key performance indicators, thereby providing objective presentation of the Company's sustainability performance.

Report Deliberation and Approval

This report was deliberated and approved for publication by the Board of Directors on April 24, 2026.

Access to this Report

The electronic version of this report is available on the Company's official website (www.longsys.com). This report is available in both Chinese and English. In the event of any discrepancies between the two versions, the Chinese version shall prevail.

About Longsys

Company Profile and Overview

Longsys, founded in 1999 and listed on the SZSE in 2022 (Stock Code: 301308), is a semiconductor memory brand company. Leveraging full stack technological capabilities that cover key segments of the memory value chain, including chip design (controller and memory chips), firmware algorithm development, memory product design, and packaging and testing, the Company provides consumer-grade, enterprise-grade, automotive-grade, and industrial-grade memory products. The Company's portfolio includes the industry-focused storage brand FORESEE, the overseas industry storage brand Zilia, and the international high-end consumer storage brand Lexar. Its products are widely used in AI servers, edge AI devices, data centers, automotive electronics, the Internet of Things (IoT), security surveillance, industrial control, and the personal consumer storage market.

Longsys Development Milestones

Took the lead in releasing the USB flash module UDP, pioneering a new production model of the USB product

Founded in Shenzhen, China, engaging in MASK ROM services

2008

1999

Introduced SD protocol products using TSOP 48 packaging, certified as a "National New Key Product" by the Ministry of Science and Technology of the People's Republic of China

2012

Took the lead in launching the integrated SSD module product SDP (SATA Disk in Package)

Acquired Lexar, an international high-end consumer storage brand Won the "China Patent Award of Excellence"

2016

2017

Took the lead in launching USB control chip based on AG-AND flash memory in Chinese Mainland, providing high compatibility and costefective storage solutions

Established the B2B brand "FORESEE" and released eMMC and solid-state drive (SSD) storage products

2014

Oficially adopted the English name "Longsys" and started global development

2019

The first phase of Zhongshan Longsys Storage Industrial Park was completed and put into production

2018

Listed on the Shenzhen Stock Exchange (stock code: 301308)

Completed the joint-stock reform and reorganized as a joint-stock limited company

Took the lead in launching automotive UFS and 512Mb SPI NAND Flash in Chinese Mainland Selected as a "Little Giant" enterprise

Took the lead in launching the 1TB UFS, 1TB micro SD card, and 1TB PCIe BGA SSD, leading the memory industry to pioneer the TB-level capacity era Won another "China Patent Award of Excellence"

2011

2002

2022

2021

Established Longsys Shanghai Headquarters (R&D Center)

2020

Oficially established Longsys Shanghai Headquarters

Took the lead in releasing automotive memory products in Chinese Mainland

Expanded in-house developed controller chip portfolio (UFS & USB & automotive-grade storage)

Established a public bonded warehouse in Zhongshan Longsys Storage Industrial Park

2025

Launched the industry-first integrated packaging mSSD

2024

Took the lead in launching QLC eMMC in Chinese Mainland Becoming the only storage brand selected for the 2024 Fortune China Tech 50 List

2023

Acquired 70% equity in Longforce Suzhou (formerly named "Powertech Technology (Suzhou) Ltd.") planning for high-end packaging and testing capabilities Successfully acquired 81% equity in Zilia Eletrônicos (formerly named "SMART Brazil"), expanding in the Latin American market Launched eSSD and DDR5 RDIMM, taking the first step in the highend enterprise storage market

Business Scope and Market Presence

The Company provides high-performance, high-quality, and innovative semiconductor storage products for applications such as edge AI, AI servers, data centers, embodied AI, the automotive sector, premium consumer electronics, and industrial fields (security, surveillance, etc.). At present, the Company has product lines of in-house developed chips, embedded storage, solid-state drives, mobile storage, and memory modules. Longsys has established research and development bases, packaging and testing facilities, and manufacturing operations centers in the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta in China, as well as in the Americas, Europe, and other regions, forming a domestic and overseas dual-circulation supply chain system, achieving global expansion of its storage business, and innovative development with industrial partners.

Global Presence

The Company has established branches in Chinese Mainland, Hong Kong, China, Taiwan, China, as well as other regions in Asia, the Americas, Europe, and other places, forming a global business presence

2025 Key Performance

Environmental

Annual emissions reduction of domestic factories

11,489.18 tonnes CO e

Recycled water consumption

32,665,480.00 m

Longsys

did not experience

any administrative penalties due to environmental protection violations

100%

compliant waste disposal

Social

Longsys and its six subsidiaries have all obtained ISO 27001 Information Security Management System Certification

Longsys, Longforce Suzhou and Zhongshan Longsys have all obtained ISO 9001 Quality Management System Certification and IATF 16949 Automotive Quality Management System Certification

Zhongshan Longsys has obtained the ANSI/ESD S20.20 Electrostatic Discharge (ESD) Control Program Certification

Technical R&D personnel

R&D investment reached

1,240

RM B1,048 million

Longsys has accumulated patents

including invention patents

610

218

Longforce Suzhou and Longsys Zhongshan have successfully obtained ISO 45001 Occupational Health and Safety Management System international Certification

Governance

Longsys held board meetings

general shareholder meetings

9 times

5 sessions

held earnings briefings and investor meetings

119 sessions

Longsys responded to investor inquiries via the Interactive E-platform on the oficial website

233 times

achieving response rate

100%

2025 Milestones

Launched Ultra-Compact 7.2mm eMMC, Expanding Physical Space for AI-Powered Wearable Devices

The ultra-compact 7.2mm×7.2mm eMMC storage product launched by Longsys leverages the PTM mode (storage product technology manufacturing) full-stack customization model to achieve product innovation. This further strengthens the Company's differentiated market competitiveness in storage product size, thermal management, and compatibility, providing robust storage technology support for the AI-powered wearable device industry.

Introduced 0.6mm Ultra-Thin Epop4x, Continuous Innovation in Wearable Storage

From standardization to innovative customization, Longsys wearable storage portfolio spans from the 7.2mm ultra-compact eMMC to the 0.6mm ultra-thin ePOP4x, addressing storage needs from basic to high-end. This offers comprehensive support for lightweight and high-performance wearable devices.

Showcased Multiple New Products at MemoryS 2025, Exploring Comprehensive Innovation in Storage Commerce

From eMMC and SD controllers in 2024 to the UFS and USB controllers launched in 2025, the Company has systematically expanded its proprietary controller portfolio, with core IPs independently designed and developed. With significant achievements in global manufacturing and brand expansion, Longsys won the Best Comprehensive Innovation Breakthrough Award by virtue of its comprehensive innovation capabilities.

Collaborated with SanDisk to Launch High-Quality UFS Solutions

On June 16, 2025, Longsys and SanDisk signed a UFS cooperation MOU in Zhongshan. By integrating SanDisk's advanced flash memory technology with Longsys' controller and packaging & testing capabilities, the partnership aims to develop high-quality UFS solutions. Leveraging the TCM model, this collaboration optimizes supply chain efficiency, empowers mobile and IoT markets, and explores new value creation in the storage industry.

Longsys Shanghai Headquarters Oficially Opened, Driving Global Expansion With High-End Storage "Chip"

On August 26, 2025, Longsys' Shanghai Headquarters was inaugurated in Lingang, accommodating over 500 R&D and operations personnel. Its core functions focus on the research and development of controller chips, enterprise-grade, industrial-grade, and automotive-grade storage products, as well as independent design of storage chips. Its service areas cover rapidly growing markets such as artificial intelligence, data centers, smart cars, smart grids, and Industrial Internet of Things (IIoT). The park has opened the world's first flagship store of Lexar, a high-end consumer storage brand, and built a storage culture museum simultaneously. By integrating multi-site operations, it strengthens the dual-circulation supply chain system, deepens TCM/PTM models, and solidifies the foundation for global high-end storage expansion.

August

Public Bonded Warehouse Established, Accelerating Open Innovation Ecosystem for Storage

On August 28, 2025, Honorchip Express Supply Chain, a subsidiary of Longsys, inaugurated its public bonded warehouse at Zhongshan Longsys Storage Industrial Park and received the bonded warehouse registration certificate. As the first public bonded warehouse in Cuiheng New District, it enhances the supporting services of Zhongshan Longsys Storage Industrial Park for open storage innovation cooperation and drives integrated supply chain development on both banks of the Pearl River Estuary, and facilitates coordinated upgrading of regional supply chains.

Launched Industry-First Integrated Packaging mSSD, Enabling Flexible and Eficient Delivery Via Ofice is Factory

On October 20, 2025, Longsys introduced the industry's first integrated packaging mSSD under the Office is Factory model. The product has applied for domestic and international patents and entered the mass production ramp-up stage. It successfully adopts wafer-level system-in-package (SiP) technology, delivering cost reduction and enhanced efficiency alongside low-carbon environmental benefits, robust performance, flexible form factors, and multi-specification expansion, empowering storage demands across diverse scenarios.

mSSD Storage Media Derive a New Form: Industry's First AI Storage Core Unveiled

On November 27, 2025, Longsys launched the industry's first AI Storage Core based on mSSD technology, released under the Lexar brand. Featuring high performance, reliability, and flexibility, the product ofers up to 4TB storage capacity and adapts to five edge AI terminal scenarios, pioneering a new technical pathway for edge AI storage.

Lexar 雷克沙

Longsys Honors

Longsys Honors

Longsys Honors and Awards in 2025

Top 100 Electronic Information Manufacturing Enterprises in Guangdong Province 2025 (by Comprehensive Strength) Guangdong Electronic Information Industry Association

Guangdong Top 500 Manufacturing Enterprises Guangdong Manufacturing Industry Association Guangdong Academy of Development and Reform Institute of Industrial Economics, Jinan University

深圳十工业和信急化五年

深圳市制造业单项冠军企业

Message from the Chairman

In the new era of the global digital wave and the transformation of the storage industry, Longsys stays at the forefront of technological innovation, with R&Ddriven growth as its core competitiveness. It regards sustainable operation and sound governance as the cornerstone of corporate development. Drawing on the strengths of own brands, and supported by a "dual-circulation" supply chain system underpinned by coordinated packaging and testing bases at home and abroad, we continue to create value for global customers and build an efficient and reliable storage ecosystem. The long-term value of an enterprise stems not only from commercial success but also from a profound commitment to sustainable development. Longsys fully integrates ESG principles into its strategic decision-making, advancing the deep integration of environmental responsibility, technological ethics and social contribution into daily operations. While leading industry progress, we are committed to cocreating a green, harmonious and sustainable future.

Chairman of Longsys

We deepen responsible governance and strengthen compliance foundations.

Longsys has established a three-tier governance system comprising the Board Strategy and ESG Committee, the ESG Management Committee, and ESG Execution Team to ensure closed-loop management of ESG issues from decision-making to implementation. In 2025, we clarified core ESG topics and incorporated critical areas such as climate governance into a systematic framework. In compliance management, our rigorous business ethics controls and risk early-warning mechanisms safeguard the legitimate rights of all stakeholders, strengthening the foundation for steady growth.

We drive innovation relentlessly to deliver superior quality.

We achieved major breakthroughs in the mid-to-high-end storage segment in 2025. Revenue from enterprise-grade storage products grew significantly, and we launched several industry-leading products ahead of the market. The Company has established a quality management system covering the entire product lifecycle while actively exploring an AI-enabled storage innovation ecosystem to address industry pain points in the compatibility between storage and AI end devices. We uphold responsible marketing and R&D practices. While strengthening our global patent portfolio, we strictly enforce data security and customer privacy protection standards, embodying the philosophy of technology for good.

We pursue green operations to build a low-carbon ecosystem.

Longsys integrates climate governance deeply into its business operations, steadily advancing greenhouse gas accounting and energy structure optimization. Subsidiaries such as Longforce Suzhou have achieved a notable increase in the proportion of green power consumption. Through production process optimization and energy-saving technological upgrades, power conservation performance across all bases has improved year by year. In the circular economy, we implement refined waste classification and resource recycling. Working with partners, we adhere to high-standard environmental management to support the industry's transition to a green and low-carbon model.

We empower our people to grow and build a harmonious workplace.

Longsys regards employees as its most valuable asset. Through tiered training programs and dual-career advancement pathways, we enable employees to continuously enhance their professional value. We strictly comply with occupational health and safety standards, and through systematic monitoring and management systems, we fully safeguard the physical and mental well-being of every employee. The Company is dedicated to stimulating organizational innovation through diversified incentives and care initiatives, aligning talent development with corporate strategy.

We collaborate with our partners to shoulder social responsibilities.

The Company implements strict sustainable procurement policies in supply chain management. Through supplier audits and conflict minerals management, we ensure transparency and compliance across the industrial chain. In industrial collaboration, we have established joint innovation labs to accelerate the development of an open innovation ecosystem for storage and promote the integrated development of regional supply chains. We will continue to balance economic and environmental benefits, striving to evolve from a participant to a leader in ESG practices and create long-term value for social prosperity.

Looking ahead, Longsys will continue to increase R&D investment, focus on cutting-edge semiconductor storage technologies, and accelerate the commercialization of innovative achievements. We remain committed to a low-carbon development path. While driving technological breakthroughs and industrial upgrading, we will deliver sustainable returns to shareholders and contribute storage-driven momentum to social prosperity. We sincerely hope to continue earning the trust and support from all stakeholders. Let us move forward together to build a sustainable future for the semiconductor industry!

Double Materiality Assessment

In 2025, Longsys systematically reviewed and optimized its ESG topics in accordance with the Self-Regulation Guidance No 17 for issued by the SZSE, identifying and confirming 16 sustainability topics. The Company extensively solicited opinions and suggestions from stakeholders through various methods, including questionnaire surveys and interviews, to fully safeguard the legitimate rights and interests of all parties.

During the topic identification and assessment process, the Company conducted analyses from two dimensions: impact materiality and financial materiality. This established a double materiality assessment framework, providing a scientific and systematic decision-making basis for formulating and advancing the Company's sustainability strategy and practices.

Stakeholder Engagement

Longsys places high importance on stakeholder engagement. We systematically identify various stakeholder groups and their key concerns, and maintain ongoing interaction through diversified communication channels, ensuring that the engagement mechanism is regularized and institutionalized. Through methods such as questionnaire surveys, interview exchanges, meeting communications, and online platform interactions, the Company fully listens to stakeholder feedback and incorporates it into the materiality topic assessment and management decision-making processes.

Longsys Stakeholder Concerns and Communication Channels

Identification of Material Topics

Longsys has established a systematic ESG management mechanism. Through in-depth communication with various internal departments, the Company comprehensively examines its daily operational activities and key links in the value chain. Additionally, we extensively gather feedback from stakeholders, including investors, customers, employees, and suppliers.

On this basis, the Company conducted a benchmarking analysis of the relevant feedback against industry issues. By comprehensively considering the key focus areas of capital markets, regulatory and compliance requirements, and industry development trends, Longsys systematically identified and confirmed its ESG material topics for 2025.

Impact Materiality Assessment

In 2025, the Company conducted a stakeholder impact materiality survey focused on various issues, primarily using a questionnaire format, collecting a total of 111 valid responses. The Company established a standardized scoring system to quantify the importance of each issue. We then performed a comprehensive assessment by incorporating the weighting of diferent stakeholder groups, identifying and responding to their core concerns. Through this assessment, we ultimately identified five issues with a high degree of impact materiality, providing a critical referenc for strategic resource allocation and key management priorities.

Financial Materiality Assessment

Longsys systematically identifies the potential impact of ESG issues on its operating results, financial position, and future development from the dimension of financial materiality. Aligned with the Company's business characteristics and value chain structure, we constructed an assessment pathway of "issue decomposition – risk identification – financial impact analysis". Through cross-departmental collaboration, we conducted qualitative and quantitative analyses to ensure the scientific rigor and practicality of the assessment outcomes.

Longsys 2025 ESG Material Topics

Environmental

Climate change and energy use

Environmental compliance and pollutant management

Ecosystem and biodiversity protection

Water resources utilization

Social contribution

Social

Innovation-driven growth

Circular economy and resource use

Responsible supply chains

Equal treatment of SMEs

Product safety and quality

Financial Materiality Assessment Process of Longsys

Data security and privacy protection

Employees

Customer relationship management

Governance

Stakeholder communication

Business ethics

Due diligence

Materiality Issues Determination Results

In 2025, the results of Longsys' ESG materiality issues identification are presented in the following matrix. The assessment identified 2 issues that are material to Longsys in terms of both financial and impact materiality, 2 issues with only financial materiality, and 3 issues with only impact materiality.

Longsys Double Materiality Matrix

In 2025, for issues with high financial materiality, including innovationdriven growth, product safety and quality, customer relationship management, responsible supply chains, and climate change and energy use, we implemented systematic management following the framework of "Governance, Strategy, Risk Management, Metrics and Targets" and disclosed relevant information in this ESG report.

Moving forward, Longsys will continue to deepen the management of key issues. Leveraging internal risk management and internal control mechanisms, we will persistently enhance management efectiveness, drive the Company's long-term and stable development, and achieve our sustainability goals.

01

Strengthening the Foundation, Facilitating Stable Growth

Longsys continuously refines its corporate governance system, systematically integrating sustainability requirements into governance and operational management. By optimizing the governance structure, strengthening regular communication with investors, and improving the sustainable development management mechanism, the Company promotes efective interaction with various stakeholders. We also continually strengthen risk management and business ethics development, gradually building a clear, standardized, and sustainable governance system. This provides a solid guarantee for the Company's long-term, stable operation and continuous value creation.

The Company has also strengthened its patent portfolio and information security systems, establishing technological barriers and safeguarding data security.

Key Performance Highlights

Longsys held 9 board meetings, 5 general shareholder meetings, and 119 earnings briefings and investor meetings, communicating with investors regarding publicly disclosed financial performance, business progress, and future strategy

Longsys responded to 233 investor inquiries via the Interactive E-platform on the oficial website, achieving a 100% response rate

Longsys conducted 6 business ethics and integrity advocacy training sessions for approximately 1,500 participants, ensuring broad coverage and in-depth implementation

Longsys and its 6 subsidiaries have all obtained ISO 27001 Information Security Management System certification

In 2025, Longsys did not experience any major information security incidents, and achieved a 100% remediation rate of unacceptable risks (i.e., medium and high levels)

In 2025, Longsys' training on information security awareness achieved 100% coverage in the new employee onboarding program, with a cumulative participation of over 1,200 employees

SDGs Addressed in this Chapter

ESG Material Topics Addressed in this Chapter

Business ethics, Stakeholder communication, Data security and privacy protection

Sound Governance System

Longsys continuously advances the development of a standardized, efficient, and transparent corporate governance framework. Centered on the governance objectives of clear authority and responsibility, effective checks and balances, and collaborative operation, the Company consistently improves its corporate governance structure and internal control system. By optimizing the board structure, strengthening the functions of specialized committees, and enhancing investor communication and information disclosure, Longsys persistently elevates its governance standards and market credibility, laying a solid foundation for the Company's long-term and stable development.

Governance System

Longsys strictly complies with the Company Law ofthe People 's Republic ofChina, the Securities Law ofthe People 's Republic ofChina, the Code of Corporate Governance for Listed Companies, and the Rules Governing the Listing of Shares on the ChiNext Market of Shenzhen Stock Exchange as well as other relevant laws, regulations and regulatory requirements. In line with its own business characteristics, the Company continually refines its corporate governance structure and internal management policies. Longsys ensures the efective functioning of the general meeting of shareholders, the Board of Directors, and the management team, fostering a corporate governance system that is clear in its delineation of responsibilities, incorporates checks and balances, and operates with full compliance

Board of Directors Structure

The Board of Directors of Longsys consists of 9 members, including 4 independent directors, representing over 40% of the Board membership, which complies with applicable laws, regulations, and the Company's Articles ofAssociation. The Board has established specialized committees, including the Audit Committee, the Strategy and ESG Committee, the Nomination Committee, and the Remuneration and Assessment Committee. These committees provide professional support to the Board in areas such as audit oversight, strategy and ESG planning, director and senior management selection, and compensation and performance management.

Each specialized committee operates in accordance with its defined responsibilities. Moreover, independent directors hold a majority in the Audit Committee, the Nomination Committee, and the Remuneration and Assessment Committee, and are appointed as committee chairs. Additionally, all members of the Audit Committee hold no senior management positions in the Company, effectively safeguarding the independence and objectivity of the Board's decision-making.

Board Diversity

In the process of director nomination and selection, the Company comprehensively considers multiple factors, including gender, age, cultural background, educational experience, professional expertise, industry experience, and tenure structure. The Company is committed to building a Board with diverse perspectives and complementary capabilities. The Nomination Committee is responsible for overseeing the implementation of the Board Diversit Polic and assesses the Board's composition at least annually. Where necessary, independent professional organizations may be engaged to assist in selecting appropriate director candidates, ensuring the efective integration of diversity principles into Board performance management.

Case

Multiple Authoritative Recognitions Demonstrate Governance Efectiveness; Continuous Improvement in Information Disclosure and Board Operations

Longsys has continuously optimized its corporate governance and information disclosure practices, earning high recognition from the capital markets and regulatory authorities. During the reporting period, the Company received the highest 'A' rating for information disclosures from the SZSE, was ranked among the Top 20 for Information Disclosure by Listed Com Information Disclosure by Listed Com-

panies in the Greater Bay Area, and was recognized as a "Best Practice Case for Board of Directors" by the China Association for Public Companies. This series of authoritative accolades reflects the Company's continuous improvement in standardized operations, information transparency, and Board performance. It also indicates that the Company has established a relatively mature governance mechanism in areas such as investor communication, risk management, and long-term value management, further cementing the governance foundation for the Company's high-quality development.

Investor Relations Management

Longsys places great importance on communication with shareholders and investors, enhancing information transparency and interaction efficiency through diversified channels. The Company's official website features functional modules such as "Interactive E-platform", "Email Subscription Center", "Investor Contact", and "Investor Education", providing investors with services including subscription to updates, information inquiries, and investor education.

Through regularly convening Board meetings, general shareholder meetings, and earnings briefings, the Company maintains in-depth discussions with investors regarding the Company's operating performance, business progress, significant strategic matters, and market concerns. In 2025, the Company actively participated in research activities hosted by several investment institutions and securities firms, engaging in in-depth discussions on topics such as storage business development, high-end product portfolio strategy, and cooperation with international customers. These efforts further strengthened the capital market's understanding of and confidence in Longsys' long-term development.

Key Performance Highlights

Longsys held board meetings

9 times

The Company held earnings briefings and investor meetings

119 sessions

general shareholder meetings

5 sessions communicating with investors regarding publicly disclosed financial performance, business progress, and future strategy

Longsys responded to investor inquiries via the Interactive E-platform on the oficial website

233 times

achieving response rate 100%

Sustainable Development Management

Longsys integrates the concept of sustainable development into its corporate strategy and daily operations, systematically advancing ESG management. While creating economic value, the Company also balances environmental protection, social responsibility, and corporate governance.

Sustainable Development Management System

Longsys has established a comprehensive sustainable development management system, deeply embedding ESG principles into its corporate governance and operational practices. By refining its governance structure and decision-making processes, the Company ensures that ESG issues are effectively identified, managed, and disclosed.

ESG Governance Structure

The Company has established a three-tier ESG governance system, consisting of the Board Strategy and ESG Committee, the ESG Management Committee, and the ESG Execution Team. This clarifies the division of responsibilities at each level, forming an interconnected, closed-loop ESG governance mechanism.

All ESG material issues, materiality assessments, policy formulation, and information disclosures follow the process of "proposal by the execution team, review by management, and approval by the decision-making body", ensuring scientific decision-making and efective execution.

Sound and Compliant Operations

Longsys upholds compliance management as a core principle of its business operations, consistently refining risk control mechanisms and business ethics standards. The Company has established a comprehensive compliance system covering corporate governance, strategy formulation, and business execution, laying a solid foundation for its long-term and stable development.

Risk Management and Internal Control

Longsys adheres to a prudent and stable approach to business management, continuously improving its risk management and internal control system to navigate complex and evolving business environments.

Risk Management System and Mechanism

The Company conducts systematic risk identification and assessment annually at both the strategic level and key business processes, resulting in a dynamically updated risk register. Through regular auditing and monitoring mechanisms, Longsys continuously tracks risk evolution and monitors remediation progress. With the deepening of ESG management, the Company is progressively integrating environmental, social, and governance-related risks into its risk management framework, such as monitoring supply chain risks stemming from climate change, to enhance overall operational resilience.

Risk Identification and Response Measures

In 2025, Longsys carried out systematic risk identification efforts, using standardized tools to collect information on risks and opportunities identified by various business departments during operations. This initiative has laid a crucial foundation for building a complete corporate-level risk issue repository and establishing a routine assessment and response mechanism.

Internal Control System and Measures

Longsys has established a two-tier compliance management system, structured around "Company - Business Unit" controls, continuously enhancing internal controls through process optimization and institutional development to ensure compliance requirements are embedded in daily operations. Guided by the principles of "comprehensiveness, materiality, checks and balances, and adaptability", the Compan systematically rectifies internal control deficiencies and potential risks identified in audits while strengthening supervision. Moreover, b innovatively implementing distinctive mechanisms such as the "Three Orders and Five Declarations", the Company further specifies compliance requirements in key areas, continuously improving the efectiveness and execution of internal controls.

Business Ethics

Longsys views business ethics as a strategic cornerstone for compliant operations and sustainable development. The Company systematically strengthens employee compliance awareness through a tiered supervision mechanism and standardized process control systems, complemented by professional auditing and regular training. Additionally, we strive to cultivate a transparent supervisory environment by establishing diverse reporting channels and whistleblower protection mechanisms, thereby providing robust support for fostering a culture of integrity and honesty.

Business Ethics Governance Structure

The Company implements a three-tier business ethics governance mechanism comprising the Board of Directors, a specialized committee, and the Audit and Internal Control Department. The Board of Directors, as the highest decision-making body, is responsible for deliberating and approving business ethics-related strategies and policies. The specialized committee performs supervisory duties, and the Audit and Internal Control Department, as an independent functional department, handles daily monitoring, investigation, and evaluation tasks. This includes conducting objective audits and assessments of business ethics management across departments, submitting reports to senior management, and escalating major issues to the Board of Directors for discussion and decision-making.

Business Ethics Management

In terms of institutional framework, we have established a core framework of policies focused on anti-corruption, anti-fraud, guidelines for daily conduct, and monitoring mechanisms. This has resulted in a comprehensive set of rules and regulations covering all business processes, including research and development, design, sales, and manufacturing. These clearly define employee codes of conduct and uphold a "zero-tolerance" principle towards any fraud and negligence, ensuring that business ethics requirements are integrated and implemented across all business operations. In 2025, we consolidated and upgraded the existing business ethics system, issuing the Longsys Eight Red Lines Policy to further clarify behavioral boundaries and compliance baselines for employees. The policy explicitly prohibits the following acts:

Bribery, acceptance of bribes, or solicitation of bribes

Embezzlement or misappropriation of company assets

Illegal use or disclosure of critical company information

Unauthorized operations in violation of regulations

Concealment of facts or fabrication of information to commit fraud

Breach of trust causing harm to the Company's interests

Illegal engagement in competing businesses

Other serious illegal or noncompliant acts

In terms of regulation implementation, the Audit and Internal Control Department, as an independent supervisory body, exercises comprehensive supervision over the entire process from strategic decision-making to business operations. To ensure professional and authoritative execution of duties, all department members hold relevant professional qualifications in areas such as anti-fraud, auditing, internal controls, and supervision We have embedded compliance supervision into key operational processes through a series of systematic management initiatives:

Supply Chain Management

Establishing an integrity review mechanism for supplier and agent admission, with the signing of integrity cooperation agreements as a prerequisite for cooperation. This manages commercial ethical risks posed by external partners.

Employee Behavior Management

The Company signs integrity and compliance agreements with all employees and conducts irregular integrity awareness programs, with special integrity training provided for key positions in sales, R&D, and procurement to enhance employees' integrity and self-discipline awareness and foster a strong ideological defense against corruption.

Supervision and Inspection

Conducting systematic scanning and assessment of the Company's core businesses and high-risk areas to proactively identify fraud clues and initiate investigations based on rules and regulations, and handling internal and external complaints and reports, utilizing specific investigations to create a strong deterrent efect.

In 2025, we conducted risk self-assessments focusing on key areas such as procurement. Based on identified issues, we took timely measures including revising the procurement management policies, optimizing processes, clarifying responsibilities, and implementing job rotation for key positions. These actions aim to prevent risk recurrence. We incorporated relevant cases into internal warning and education materials to promote deeper integration of compliance management and business operations. As of the end of the reporting period, the Company has not experienced any integrity or compliance violation incidents requiring public disclosure.

Anti-Unfair Competition

Longsys has established a comprehensive anti-unfair competition management system. By issuing a series of policies, including the Employee Manual and the Trade Secrets Protection Measures, the Company clearly defines the scope of trade secret protection, the boundaries of fair competition, sales behavior standards, and penalties for violations, establishing clear behavioral guidelines for all employees.

To improve management eficiency, the Company will keep optimizing its existing management and control mechanisms, with a particular focus on enhancing compliance controls at the business front-end. This includes embedding compliance assessments into the product R&D stage, pre-reviewing marketing plans before implementation, and incorporating specific compliance clauses into sales contracts to proactively prevent the risk of unfair competition at the source of business operations, thereby safeguarding a fair and orderly market competition environment.

Furthermore, the Company continues to elevate anti-unfair competition awareness through its regular employee training system. Anti-unfair competition requirements are included in mandatory courses, supplemented by typical case studies, to continually reinforce employees' compliance bottom line. As of the end of the reporting period, no unfair competition lawsuits have been filed against Longsys.

Whistleblowing and Handling

The Company has established a multi-channel, transparent whistleblowing mechanism, including a reporting hotline, dedicated email, and WeChat reporting platform. These channels are publicly displayed at ofice locations, on the Company's oficial website, and within the internal OA system. Reported issues undergo initial evaluation by a specialized team, followed by investigation by either the Audit and Internal Control Department or a specialized investigation team, as the situation warrants. In 2025, all whistleblower cases were handled following standard procedures.

Business Ethics Training

Longsys has established a comprehensive business ethics training system that spans all employees and processes. The training covers key topics such as anti-corruption, anti-fraud, confidentiality agreements, and business ethics constraints. Furthermore, training is conducted in a tiered and targeted manner to ensure compliance requirements are effectively implemented. The Company provides well-rounded business ethics training based on job functions and employee stages, requiring new employees to undergo integrity training upon joining, while ofering existing employees diferentiated training based on their respective roles.

In 2025, the Company conducted 6 business ethics and integrity awareness training sessions, reaching approximately 1,500 participants. These sessions primarily targeted employees in key functions such as sales, procurement, R&D, and production, covering approximately 37% of the total workforce. During the reporting period, 2 directors and 7 management personnel participated in at least one anti-bribery and anti-corruption training session, representing 22% of all directors and 88% of all management personnel, respectively. Training content included integrity in professional conduct, procurement risk prevention and control, anti-corruption compliance requirements, and trade secret protection. Certain sessions have already covered senior management and board members, with plans to further expand coverage in the future. Additionally, the Company has integrated integrity education into its talent development system as a mandatory module in the general curriculum.

Strengthening Information Security

Longsys upholds data security as the cornerstone of corporate development, strategically prioritizing information security amidst the digital wave and establishing a comprehensive, full lifecycle management system. Guided by international standards, we fortify information security defenses and protect customer privacy.

Longsys strictly adheres to the requirements of the ISO/IEC 27001:2022 international standard for information security management, and has established an information security management framework covering cybersecurity, data security, and personal information protection. Guided by the Information Security Management Manual as the toplevel framework, and supported by policies such as the Information Asset Management Procedures, the Information and Data Protection Management Procedures, and the Management Procedures for . These procedures ensure that information security management practices are standardized, orderly, and consistently followed based on solid rules. The Company continuously strengthens its cybersecurity and data security capabilities, comprehensively reinforcing its information security defenses to

effectively ensure the security and compliance of both internal and external information.

Longsys continually develops its ISO 27001-centric information security framework. Both Longsys and its six subsidiaries have obtained the Certification.

To ensure the efective implementation of information security initiatives, Longsys has established a clear and collaborative information security organizational structure. The Executive Management Team (EMT) is designated as the highest governing body responsible for information security, with the Management Representative and the Information Security Team appointed as the professional execution team responsible for ensuring the establishment, maintenance and continuous optimisation of the information security management system. All business departments serve as the implementation entities, strictly enforcing information security management policies and requirements to ensure the efective execution of al security measures in daily operations.

Longsys' information security controls encompass the entire product lifecycle, from R&D, materials, manufacturing, to after-sales service, ensuring the security and reliability of its products. In 2025, the Company continued utilizing security hosting services. By employing professional security management tools and dedicated personnel, we persistently optimized the security management of major servers, enhancing resilience against external cyberattacks.

In its cooperation with clients, Longsys places high importance on compliance management of cross-border data transfers, especially in scenarios involving personal information and important data. The Company has established a robust evaluation mechanism for cross-border data transfer to strictly control risks associated with outbound data transfer. During such transfers, we fully employ comprehensive security technical measures such as data encryption and anonymization to efectively safeguard data security. Additionally, Longsys signed data protection agreements with business partners to define mutual responsibilities and obligations regarding data processing, usage and protection.

Access Management and Control

The Company has implemented a comprehensive access management system. The operations and maintenance department has designated dedicated roles for access management, overseeing access control for all core business systems. Access management practices strictly adhere to a dual-approval mechanism involving both the department head and the access administrator.

Longsys deeply integrates its access management with human resources processes: newly onboarded employees are granted the minimum necessary access based on their job responsibilities; access rights are dynamically updated when employees change roles; and upon resignation, system access is immediately revoked to mitigate the risk of access persistence. Furthermore, the Company implements an annual access review mechanism. Spearheaded by the access administrator with the collaborative participation of department heads, this process ensures the reasonableness of access rights.

In 2025, to enhance external access security, the Company deployed a Zero Trust Access Control system, covering scenarios for employee remote work and external partner access. All connections require identity authentication and endpoint trust verification, with access requests being encrypted and forwarded, ensuring that external access is secure and controllable. Employees request access permission on a need-to-know basis, with administrators providing centralized approval, thereby implementing the principle of least privilege. This effectively addressed the previous issue of overly broad SSLVPN authorizations, improving remote access security.

Security Monitoring, Operations and Maintenance Assurance

Longsys has developed a comprehensive, three-tiered monitoring platform for operations and maintenance to prevent potential information security risks at every stage, including:

Longsys Information Security Monitoring Platform for Operations and Maintenance

This platform monitors metrics across the Company's entire network, including traffic of network devices, the number of AP (Access Point) users, access control system status, the number of Secure Sockets Layer Virtual Private Network (SSLVPN) users, and load-balancing session counts. Detected anomalies trigger automatic alert notifications via email and DingTalk bot. Alert recovery messages are also sent upon issue resolution.

This platform monitors the operational status of both physical and virtual servers across the Company, including device status, CPU usage, memory usage, and disk usage. Alert messages and recovery notifications are sent via email if any server anomalies are detected or if resource usage exceeds predefined thresholds.

This platform monitors the availability of the Company's application systems. In the event an application becomes inaccessible, alert messages are sent to the application administrator via DingTalk groups and phone calls.

In 2025, we comprehensively upgraded the server monitoring system by introducing an advanced converged architecture platform, combined with professional data monitoring tools, to continuously enhance system monitoring standards and operational eficiency.

Risk Assessment and Emergency Management

Longsys has established the Management Procedures for Information Security RiskAssessment to quantitatively identify, assess, and categorize information security risks (high, medium, low), dynamically update the risk register, and develop and track remediation measures to ensure risks are under control.

Risk Identification and Resolution

In 2025, through business continuity impact analysis and information security risk assessment for the operations of the Information Management Department, the Company identified 13 medium-risk and 3 high-risk scenarios. Effective resolution measures have been implemented for all to reduce their risk levels.

Emergency Plans and Drills

For high-risk scenarios, we specifically developed emergency response plans and organized four practical drills. The drills covered scenarios such as ERP system database deletion or interruption, phishing email incidents, and data recovery. All drills achieved their intended objectives and validated the reliability of the Company's emergency response procedures.

Internal Audit and Improvement of the Management System

During the reporting period, Longsys organized and completed an internal audit of its information security management framework. All internal auditors were assigned after undergoing specialized training and assessment. We conducted a comprehensive evaluation of 22 departments through methods including interviews, system checks, and document reviews. In response to the 14 minor non-conformities and 7 observations identified during the audit, the Company promptly implemented improvement measures such as tightening permissions, strengthening environment isolation, and enhancing data flow risk management, ensuring the management system continue to operate efectively.

In 2025, Longsys did not experience any major information security incidents, and achieved a 100% remediation rate of unacceptable risks (i.e., medium and high levels).

Information Security Training

Longsys has established a tiered and categorized information security training mechanism via the Longsys Learning online platform to ensure comprehensive training coverage:

Newly onboarded employees are required to complete mandatory foundational courses and pass the assessment;

Existing employees undergo information security awareness training courses.

These trainings enhanced employee awareness of information security and effectively controlled the risk of incidents caused by insufficient awareness.

Key Performance Highlights

In 2025

Longsys did not experience any major information security incidents, and achieved

100%

remediation rate of unacceptable risks (i.e., medium and high levels)

Longsys' training on information security awareness achieved

with a cumulative participation of over

100%

coverage in the new employee onboarding program

1,200 employees

02

Advancing Technology, Enhancing Quality

Longsys focuses on storage chip design and application, providing high-performance and highly reliable storage solutions to global markets. In 2025, the Company concentrated its eforts on key areas such as enterprise-grade storage, automotive-grade storage, and new memory technologies, increasing R&D investments to achieve critical breakthroughs in key technologies. By implementing rigorous quality control across all stages, Longsys ensures that its products satisfy international standards and customer demands. In customer service, through tailored services and a rapid-response mechanism, Longsys optimizes management and enhances service efectiveness. Looking ahead, the Company will maintain its focus on technological innovation and product quality to drive the global storage industry ecosystem toward safer and more eficient development.

Key Performance Highlights

Longsys, Longforce Suzhou and Zhongshan Longsys, have all obtained ISO 9001 Quality Management System Certification and IATF 16949 Automotive Quality Management System Certification

Zhongshan Longsys has obtained the ANSI/ESD S20.20 Electrostatic Discharge (ESD) Control Program Certification

Longsys maintained a record of zero major or critical quality incidents throughout the year

The Return Merchandise Authorization (RMA) rate continued to decline. Notably, the RMA rates of the Enterprise Storage Business Division and the Embedded Storage Business Division decreased by 15% compared to 2024

No product recalls occurred during the year

Longsys's technology R&D team consists of 1,240 personnel, with total R&D investment for the year reached RMB 1,048 million

Longsys has accumulated 610 patents, including 218 invention patents

The overall annual customer satisfaction survey recovery rate reached 83%, with a 100% recovery rate from automotive-grade customers. According to valid questionnaire responses, customer satisfaction rate for enterprise-level clients reached 100%

SDGs Addressed in this Chapter

ESG Material Topics Addressed in this Chapter

System Integration Innovation Drives Storage Value Evolution - Highspeed Storage Media mSSD

Feature

With over two decades of technological expertise in storage, Longsys has developed full-chain independent design capabilities covering wafer analysis, NAND Flash chips, firmware algorithms, controller chips, and system-level products. Building on this foundation, the Company has continuously driven product evolution from "modular assembly" to "system-level integration".

As AI computing, cloud services, and intelligent terminals rapidly advance, downstream customers have placed higher demands on storage products in terms of performance density, space utilization, power consumption control, and delivery efficiency. Traditional SSDs have gradually reached marginal limitations in multi-device integration, production coordination, and energy efficiency optimization. In response, the Company initiated explorations into integrated storage solutions for next-generation application scenarios, giving rise to the mSSD (Micro SSD).

mSSD Innovation Pathway

In 2025, leveraging the flexible and eficient "Ofice is Factory" manufacturing model, the Company redefined the positioning of traditional SSDs, introducing a new integrated packaging mSSD product form in the solid-state storage domain, delivering high quality, high eficiency, low cost, and superior flexibility. The product was developed through multiple rounds of structural design, reliability verification, and mass production optimization from the initial concept phase, gradually forming a complete innovation closed-loop covering ideation, design, verification, mass production, and delivery. The research and development of mSSD represented the collaborative innovation of the Company's business units, R&D system, and manufacturing system, supported by the Company's rapid response capability to market changes and in-depth understanding of customer needs. During the reporting period, the product has filed domestic and international technical patents and achieved commercial application.

longsys 江波龙

mSSD

Office is Factory 灵活制造装配

Focusing on Core Product Characteristics Demands

Quality Enhancement

Adopting wafer-level system-in-package (SiP) technology, the product avoids potential reliability risks from traditional manufacturing processes at the source. Through systematic optimization of packaging and manufacturing processes, the product defect rate (DPPM) has decreased by an order of magnitude compared to previous levels, significantly improving overall product quality and providing stable quality assurance for large-scale customer applications.

Performance

While achieving slimness, mSSD maintains excellent read/write performance. Leveraging an innovative heat dissipation structure design, the product's peak performance duration reaches industryleading levels, meeting the demands of high-load application scenarios.

Data Security

Supporting multiple mainstream encryption protocols, the product provides multilayered security protection for core data. It can also ofer industrial-grade wide-temperature support based on customer requirements, ensuring data integrity and operational safety in complex or extreme environments such as intelligent assisted driving and outdoor robotics.

Compatibility and Flexibility

Fully addressing diverse client application needs, the product provides multiple capacity options and achieves flexible adaptation across specifications through innovative modular design, enabling rapid switching between diferent application scenarios. Combined with efficient heat dissipation solutions and bus capabilities, the product can be safely installed or removed during system operation, supporting cross-device data invocation and application collaboration, effectively enhancing efficiency and convenience in development, research, and creative scenarios.

Supporting Low-Carbon and Green Development

In manufacturing and usage phases, mSSD effectively addresses customer demand for low-carbon and green products through process optimization. Its production workflow avoids high-energyconsumption steps such as traditional surface-mount technology (SMT), significantly reducing energy consumption and carbon emissions while ensuring product performance and quality. This approach efectively controls the carbon footprint per unit product. During the product usage phase, mSSD complies with low-power requirements specified in relevant protocols, and its peak power consumption meets industry standards, enabling customers to achieve energy eficiency optimization goals at the system level.

Enabling AI Transformation and Intelligent Applications

As artificial intelligence (AI) applications expand from cloud environments to diverse terminal devices, storage systems face heightened demands for real-time data access, random read/write capabilities, and environmental adaptability. To address this trend, the Company launched the industry's first AI Storage Core product based on mSSD technology, designed to better meet next-generation AI ecosystems' demand for high performance data storage.

Building on mSSD, AI Storage Core further enhances performance, reliability, and usability through hardware-software co-optimization. In term of performance, the product achieves sequential read/write speeds exceeding conventional storage devices through proprietary firmware and hardware design, eficiently supporting massive data throughput. Going forward, the Company will continue optimizing small-file random access and system-level collaboration capabilities to further improve real-time response speeds for AI applications such as large model loading and image generation.

The launch of AI Storage Core expands the application scenarios of the mSSD product line, providing customizable and scalable storage solutions for AI terminals, intelligent workstations, professional imaging equipment, intelligent driving systems, and more. This not only helps customers overcome current storage challenges in AI development but also lays a technical foundation for deeper integration between storage hardware and intelligent applications.

Looking ahead, mSSD will continue leveraging its universal advantages of integrated packaging and flexible manufacturing to serve industria and consumer clients. It aims to meet market demands for rapid customization, reliable quality, compact delivery timelines, and cost control, empowering brand customers to develop differentiated products and enhance responsiveness to market changes. As technical and manufacturing capabilities deepen, the Company will continuously expand the application boundaries of storage innovation, delivering high value storage solutions for an expanding range of scenarios.

Innovation-Driven Development

Longsys consistently practices the concept of innovation-driven development, deeply integrating technological innovation with business growth. Focusing on storage industry upgrades and emerging application demands, the Company has established an innovation system covering "technology R&D—product innovation—system capabilities— ecosystem collaboration". Through continuous optimization of R&D organization and process management, strengthened hardware-software collaboration capabilities, and advancements in storage technology toward high performance, high reliability, and intelligence, Longsys accelerates technology commercialization and large-scale implementation via system and business model innovations, comprehensively enhancing its ability to serve customers and empower industrial development.

Governance

The Company strictly complies with national and industry regulations and standards, incorporating innovation-driven strategies into its governance framework and long-term development plan. Through collaborative operations among business units, the business divisions, and the Flash R&D Center, a closed-loop management mechanism has been formed spanning demand insights, technology R&D, and product delivery.

In 2025, the Company further optimized its R&D organizational structure, efectively shortening the path from customer requirements to product delivery by conducting systematic process improvements and introducing external professional institutions for support. In the transition from a "department-centric" to a "process-oriented" management model, Longsys reorganized relevant institutional documents and management requirements around end-to-end business processes (e.g., product R&D processes), reducing operational impacts from organizational adjustments and promoting standardized and sustainable process management. Meanwhile, we continuously strengthened our shared R&D platform construction, providing universal technology modules and mass production quality assurance tools to enhance overall R&D eficiency.

Strategy

Longsys consistently implements its innovation-driven development strategy, systematically advancing technology deployment and capability upgrades from a group-wide perspective centered on long-term core competencies, to strengthen resilience against external uncertainties and industry cycle fluctuations. Amid intensified competition in the storage industry, accelerated technology iterations, and rapid development of emerging applications like artificial intelligence, the Company prioritizes technological innovation to drive storage technology toward full-chain autonomy. Through forward-looking planning and sustained investment, Longsys has gradually built an innovation system emphasizing both "hardware platform capabilities + software and algorithm capabilities".

On one hand, the Company continuously strengthens its hardware capability platform centered on storage chips and controllers, improving independent and controllable capabilities in critical technologies to enhance operational security and stability of core businesses. On the other hand, increased investment in firmware, algorithms, and foundational software capabilities supports deeper technology R&D and innovation incubation, enabling high-performance, low-power, and intelligent storage products. Through synergistic development of hardware and software capabilities, Longsys continuously reinforces its overall competitiveness in storage systems and enhances comprehensive service capabilities for key customers and critical application scenarios.

Innovation Matrix

Focusing on its four core product lines—embedded storage, mobile storage, solid-state drives, and DIMM—Longsys continues to advance multi-directional innovation, exploring differentiated development paths in niche areas such as automotive-grade storage, in-house developed controllers, integrated packaging, and smart wearable devices, actively responding to downstream application demands for high-performance, low-power, and highly reliable storage solutions. In 2025, the Company achieved significant results in product R&D across multiple key areas:

Product Innovation

Solid-State Drive

AI PC Scenario

Launched high-capacity PCIe SSD products based on QLC NAND Flash, achieving breakthroughs in single-disk capacity, data retention, and overall performance. Through high-density storage design, these products meet AI dataset storage needs while reducing the number of SSDs required in systems, effectively optimizing system architecture and lowering AI integration costs. Combined with in-house developed firmware and functional designs, the products demonstrate exceptional durability, security, and lifecycle stability, well-suited for AI model loading and data-intensive applications.

Commercial PC Scenario

In the consumer storage products segment, the Company's Lexar brand launched the PCIe Gen5 SSD NM1090 PRO flagship product. With high read speeds and large capacity combined with DirectStorage technology, this product delivers a premium storage experience with multiplied performance for high-end gamers and professional creators.

Enterprise Scenario

Developed an enterprise SSD portfolio covering SATA and PCIe interfaces, supporting large-capacity, high-concurrency, and high-reliability application needs. Through in-house developed firmware technologies such as enhanced power-loss protection, dynamic cache management, and multi-level power consumption adjustment, these products simultaneously meet AI servers comprehensive requirements for high-performance boot drives and large-capacity data drives.

Embedded Storage

Automotive-Grade Storage

Constructed a in-house developed automotive storage matrix covering eMMC, UFS, LPDDR4x, and SPI NAND Flash. These products fully comply with automotive reliability standards such as AEC-Q100, and through in-house developed controller, firmware algorithms, and dedicated packaging and testing production lines, provide stable support for critical systems like intelligent cockpit, ADAS, and vehicle gateways. Currently, these products have been integrated into projects with multiple OEMs (Original Equipment Manufacturer) and Tier 1 customers, applied across various intelligent vehicle scenarios.

Smart Wearables and Ultra-Compact Storage

Through innovative packaging technology, the Company launched ultra-compact 7.2mm eMMC and 0.6mm ultra-thin ePOP4x products, achieving high integration of storage and memory while maintaining performance and power eficiency under extreme space constraints. These products support the lightweight and high-integration design requirements of AI glasses, smartwatches, and smart earbuds.

Memory Module

Launched the innovative memory product SOCAMM2, utilizing LPDDR5/5x chips and modular design to achieve comprehensive optimization of high capacity, high bandwidth, and low power consumption in a compact form factor. Through high-density interconnected structures and optimized thermal management design, this product significantly reduces power consumption while enhancing data transfer eficiency, adapting to compute-intensive scenarios such as AI servers, high-perfor-

mance computing, edge computing, and intelligent assisted driving. It provides a memory solution balancing performance and energy eficiency for AI inference and large model applications.

Storagee Processing Unit

Launched a dedicated hardware SPU (Storage Processing Unit) designed for intelligent storage architecture. Built on a cutting-edge 5nm process technology, the chip delivers a maximum single-drive capacity of up to 128TB, efectively filling the market gap between mainstream cSSDs and high-capacity eSSDs. At its core, the SPU integrates in-memory lossless compression (achieving an average compression ratio of 2:1) and HLC (High-Level Caching) technology, significantly reducing the required physical SSD capacity and cutting DRAM demand by nearly 40%. This offers data centers and

terminal devices a new storage solution that combines large capacity with low cost.

System and Model Innovation

Core Technologies

The controller chip is a core component of NAND Flash memory, responsible for scheduling data and managing communication between the memory dies and the system CPU, and it plays a key role in determining overall storage performance. Focusing on the demand for high-performance storage, Longsys continues to advance the independent R&D of controller chips by strategically deploying in Wisemem Microelectronics, building a specialized chip design platform, and developing a dedicated engineering team. As a result, the Company has successfully designed controller chips covering eMMC, UFS, SD cards, and high-end USB flash drive products. Based on its in-house developed UFS 4.1 controller chip, Longsys has also established strategic cooperation with leading global storage manufacturers such as SanDisk, further strengthening its storage performance capabilities and competitive position in emerging applications such as AI servers and AI PCs.

PiiseMem

WM7400 UFS4.1 Controller

WM7300 UFS3.1 Controller i Wis Mem

WM7200 UFS2.2 Controller

WM6000 eMMC Controller

WM5000 SD Controller

WM3000 USB 3.2 Controller

Business Model

Longsys innovatively introduced the dual-driven TCM (Technology Contract Manufacturing) and PTM (Storage Product Technology Manufacturing) models. TCM connects original manufacturers directly with Tier 1 customers through the shortest possible supply chain, ensuring supply-demand certainty, cost optimization, and supply chain transparency. PTM provides end-to-end delivery from chip design and firmware development to customized packaging, testing through an integrated "R&D + packaging and testing + manufacturing" foundry service. This model has been implemented in industrial and automotive fields, supporting specialized requirements such as dimensional customization, wide-temperature verification, and dedicated production lines.

Intelligent Evolution

The Company has integrated AI technology across the entire storage value chain, achieving three key breakthroughs: Based on built-in ML (Machine Learning) capabilities in controllers, the Company enables predictive traffic scheduling and performance optimization; Through multidimensional data analysis, the Company predicts hard drive health status to improve maintenance efficiency and data security; Combining technologies like intelligent voltage regulation and hot/cold data identification to significantly enhance reliability metrics for media such as QLC, providing higher performance and stable storage support for AI training and inference scenarios.

Edge AI Intelligent Scheduling Engine

Launched the intelligent scheduling engine iSA (Intelligent Storage Agent) for edge-side AI inference, serving as the intelligent core of the SPU. By leveraging MoE expert offloading, KV Cache intelligent management, and smart prefetching algorithms, iSA effectively addresses key challenges in large-scale MoE models—such as massive parameter size, rapid KV Cache expansion, and high I/O latency—enabling precise and eficient storage resource orchestration. Through joint optimization with AMD's Ryzen AI platform, Longsys successfully achieved local deployment of a 397B-parameter ultra-large model, and reduced DRAM consumption by nearly 40% in scenarios involving a

122B-parameter model with 256K ultra-long context length. This delivers an innovative, practical solution for the efficient local deployment and largescale application of ultra-large models.

In 2025, the Company gained industry recognition in key areas including AI computing, industrial automation, and intelligent vehicles through leading technological capabilities and reliable product quality.

Building an Innovative Ecosystem

The Company emphasizes ecosystem construction through industry exchanges and partner conferences to strengthen collaboration with upstream and downstream partners, promoting technology commercialization and application implementation. In 2025, Longsys actively participated in major domestic and international industry exhibitions, technology summits, and ecosystem events. Focusing on key scenarios such as intelligent vehicles, AI computing, and embedded/industrial applications, the Company systematically demonstrated its comprehensive strengths in storage product innovation, customization capabilities, and business models.

Through concentrated showcases at professional platforms like MemoryS, COMPUTEX, Embedded World, and China Mobile Partner Conference, Longsys launched multiple innovative storage products. The Company conducted indepth exchanges with operators, OEMs, customers, and industry partners on cutting-edge directions including AI storage, automotive-grade storage, and QLC (Quadruple-Level Cell) embedded storage, promoting technology understanding, application implementation, and ecosystem collaboration. Centered on the theme of "Storage Ecosystem, Collaborative Innovation", the Company collaborated with wafer manufacturers, terminal producers, and solution partners to explore pathways for new technologies from R&D to large-scale application, accelerating the transformation of innovation results into real-world scenarios.

Case Longsys at CFM | MemoryS 2026 Summit

At the CFM | MemoryS 2026 Summit, Longsys presented on the theme of "Integrated Storage: Exploring Edge AI," sharing the Company’s core insights and innovative achievements in edge AI storage. Addressing diverse and customized requirements, Longsys has established a Foundry-style, full-chain customization service for edge AI storage— covering the entire industrial chain, including chip design, hardware design, firmware and software development, packaging processes, industrial design, automated testing, materials engineering, and manufacturing. Through deep collaboration and technological integration, this model enables efficient customization from design to delivery. Breaking through the traditional limitations of single-component upgrades, the approach offers a new pathway for the development of edge AI storage. From precise positioning to scenario implementation, from technical closed-loop to the integration of local advantages with global operations, Longsys centers its strategy on Integrated Storage" to deliver comprehensive solutions. Moving forward, the Company will uphold its "Everything for Memory" philosophy, continue to deepen its expertise in the storage domain, drive innovation through technology, and collaborate with global partners to jointly advance the innovation and development of the edge AI industry.

Risk and Opportunity Management

Over the years, Longsys has accumulated a wealth of core technological achievements and intellectual property through its independent R&D efforts. To safeguard its core technologies, the Company has established internal policies, including the Trade Secrets Protection Measures, the Patent Management Measures and the Intellectual Property Management Policy, standardizing the creation, utilization, protection, and operation of intellectual property. The Company's intellectual property portfolio covers patents, trademarks, copyrights, and integrated circuit layout designs. Patents are primarily in-house developed, supplemented through acquisitions and licensing, providing institutional safeguards fo innovative activities.

Through clearly defined responsibilities and professional management, the Company continuously identifies and manages intellectual property related risks during technology R&D, product implementation, and external collaboration, ensuring compliant execution and stable transformation of innovation outcomes. The Risk Control and IP Center were established to oversee intellectual property strategy planning, patent portfolio development, risk prevention, and operational management, implementing three safeguard mechanisms:

Implementing a comprehensive management system across all processes, which efficiently transforms innovative outcomes into corporate intellectual property, building robust technological barriers;

Establishing a contractual mechanism that clearly defines intellectual property ownership clauses in all employee contracts;

Rolling out a pre-assessment mechanism for major projects and conducting dedicated due diligence on intellectual property. Longsys is firmly committed to protecting the intellectual property and trade secrets of its customers, suppliers, and business partners.

To enhance employees' awareness of intellectual property risks and value, the Company continuously conducts role-specific IP training programs. In 2025, five training sessions were organized for R&D, quality control, and new employees, focusing on fundamental patent knowledge, patent application procedures, and novelty protection, integrating IP awareness into daily R&D and management processes to further reduce compliance risks in innovation activities.

Key Performance Highlights

As of December 31, 2025

the Company has obtained patents

610

including invention patents 218

overseas patents 102

software copyrights 169 integrated circuit layout designs 13

Metrics and Targets

The Company maintains stable R&D investment and incentivizes innovation outcomes through a performance management mechanism for R&D personnel.

Key Performance Highlights

Longsys' technology R&D team consists of 1,240 personnel

Longsys' total R&D investment for the year reached

RMB 1,048 million

Crafting Excellence with Dedication

Longsys stays committed to a quality guiding principle of "Providing competitive products and services that satisfy customers, with value creation and customer service as the core". The Company has established a quality control system that spans the entire product lifecycle, continuously optimizing its quality management system across R&D, materials, manufacturing, and after-sales processes to ensure product reliability and long-term stability.

Governance

The Company has established a Quality Management Department responsible for overall product quality management and quality system construction. It includes specialized units for quality systems, after-sales quality, customer quality, development quality, manufacturing quality, and supplier quality. The Quality Management Department exercises vertical management over quality departments at owned factories such as Zhongshan and Longforce, implementing on-site quality control under the supervision and support of the central team. Responsible departments report progress regularly to management through mechanisms such as monthly quality meetings, ensuring that quality standards across all parts are uniformly enforced and driving continuous improvement.

The Comprehensive Management Manual serves as the overarching framework for the Company's quality management. Moreover, Longsys has implemented an array of product quality management regulations, including the QualityTraceability Management Regulations, the Trial Production Quality Management Regulations, the Packaging Factory Quality Regulations, the Regulations on Quality Management and the Control of , and the . In 2025, the Company revised its second- and third-level quality management documents, comprehensively detailing measures for quality planning, process control, and inspection standards, and improving the full-process quality control mechanism covering R&D, materials, manufacturing, and after-sales stages.

Additionally, the Company has established and continuously operates a quality management system compliant with international standards. Both Longforce Suzhou and Zhongshan Longsys have passed ISO 9001 Quality Management System Certification and IATF 16949 Automotive Quality Management System Certification. For product ESD (electrostatic discharge) protection, Zhongshan Longsys has achieved ANSI/ESD S20.20 Electrostatic Discharge Protection System Certification.

Longsys Product Quality and Safety Certifications

Strategy

At the strategic level, Longsys has established a mid-to-long-term product safety plan, committed to continuously enhancing safety standards to provide customers with safer and more reliable storage products. The Company integrates safety considerations throughout the entire production process, implementing continuous monitoring to rapidly identify and address safety incidents. The Quality Management Department exercises multi-dimensional on-site control over factories, and through mechanisms such as daily reports, weekly reports, monthly reports, and quality weekly meetings, combined with mistake-proofing process optimization, continuously improves product quality. Additionally, the Company has established a comprehensive quality evaluation and incentive mechanism, systematically driving continuous optimization of the quality system through routine monthly/quarterly assessments, annual quality conferences, and targeted quality coaching

Longsys Product Quality Management Process

R&D

Design quality is ensured through review mechanisms for requirements, project initiation, design, and testing, conducting new product quality planning activities (including setting product quality objectives, establishing product reliability testing standards, and defining entry/exit criteria for each stage of new product development). During the pilot production phase of new products, process standards and critical control points are set, with pilot production follow-up conducted.

Materials

Implement Incoming Quality Control (IQC) inspections based on sampling level criteria and MRB (Material Review Board) decisionmaking mechanisms, along with standardized shelf-life management for materials. Supplier quality management mechanisms include supplier onboarding certification, annual audits, performance evaluations, and supplier exit management.

Manufacturing

Establish a comprehensive first-piece inspection, line inspection, and final inspection process. Potential abnormalities are proactively identified through quality risk detection and IT-based error-proofing systems. Electrostatic discharge (ESD) risks are efectively mitigated through an online ESD monitoring system.

After-Sales

Establish a rapid response mechanism for customer quality issues, implementing Failure Analysis (FA) of defective products and advancing solutions according to customer quality standards.

Quality Culture Development

Longsys has systematically built a quality culture framework with participation from all employees, implementing a tiered, multidimensional quality awareness cultivation program to ensure unified action directions and effective implementation of strategic objectives.

Advocacy Culture: Through special initiatives like "Quality Month", we continuously build a normalized quality ecosystem with full employee participation and continuous improvement.

Empowerment Actions: We have established a full-level training system covering all employees, regularly conducting quality and safety training. In 2025, the Quality Department organized 35 courses covering 850 participants, with content spanning problem analysis, quality tools, and other dimensions. Through departmental, crossdepartmental, internal-external integrated, and online-onsite combined formats, employee quality awareness and professional capabilities were systematically enhanced.

Environment Building: By constructing quality culture walls, we create immersive experience environments to efficiently reinforce safety awareness, promote experience exchange and sharing, and deeply integrate quality culture into daily operations.

The Quality Department organized

covering

35courses

850participants

Case Longsys Conducts a Series of Quality Month Activities

During the 2025 Quality Month, themed "Strengthening Quality Foundations to Drive an Excellent Future", Longsys organized a series of company-wide quality improvement activities across manufacturing bases in Shenzhen, Zhongshan, Shanghai, Suzhou, and Zhuhai. Through practical formats such as knowledge competitions and skill challenges, employee enthusiasm was efectively ignited. Additionally, as an industry benchmark, the Company hosted specialized exchanges with the Shenzhen Quality Association, sharing practical experiences in "Digital and Intelligent Quality Management". Manufacturing bases focused on the "Three Nos Principles" to drive the shift in quality awareness from "passive compliance" to "proactive pursuit". These activities not only strengthened internal quality culture and practical capabilities but also enhanced industry influence through external exchanges, systematically reinforcing the Company's quality foundation

Case Electrostatic Discharge (ESD) Protection Wall Initiative

On April 1, 2025, Zhongshan Longsys fully launched the ESD Protection Wall Initiative aimed at enhancing company-wide ESD protection awareness. The initiative focused on identifying ESD risks, organizing ESD training, and soliciting ESD process improvement proposals, with cash rewards established for outstanding teams and exceptional ESD proposals.

Risk and Opportunity Management

Longsys consistently incorporates product quality and safety into its core risk management strategy. During product development and production, the Company strengthens proactive risk assessment to identify and intervene in potential safety and quality hazards in advance. For abnorma situations, a rapid response mechanism is established to execute root-cause diagnosis and implement multi-dimensional improvement measures. For major quality risks, specialized investigations are promptly initiated to ensure issues do not escalate or recur, achieving risk predictability, controllability, and closed-loop management. This comprehensive approach enhances risk response capabilities, safeguards product safety and reliability, and continuously reinforces quality defenses.

Our quality risk management system centers on quality prevention, KPI continuous monitoring, and end-to-end problem closed-loop management. Each process is supported by corresponding digital management systems: PLM (Product Lifecycle Management), WMS (Warehouse Management System), MES (Manufacturing Execution System), and EDI (Electronic Data Interchange) systems comprehensively support R&D, material, and manufacture quality control processes through data platform integration. After-sales processes are managed through the RMA system for closed-loop control. These systems ensure quality stability and customer satisfaction while efectively maintaining production quality consistency and continuous improvement.

Longsys Product Quality and Safety Management Systems

	PLM (Product Lifecycle Management) System	Enables full lifecycle management of products, including bill-of-materials management, basic data management for drawings, and project management.
	EDI (Electronic Data Interchange) System	The system dynamically collects production data to track real-time status for every production process.
	MES (Manufacturing Execution System)	Dynamically collects production data to implement error-proofing and status tracking at every production testing stage, enabling accurate forward and reverse traceability.Simultaneously, incoming material and production quality standards are maintained in the system to achieve explicit management of abnormal issue resolution.
	WMS (Warehouse Management System)	Precisely controls warehouse processes including storage, inventory, stocktaking, and location management through digitization.
	RMA (Return Material Authorization) After-Sales Management System	Provides real-time, visualized, and traceable data control.

For non-conforming products identified during production and testing, the Company follows the abnormality handling processes outlined in the Non-Conformin Product Control Procedure and other related documents. These procedures include identifying, labeling, isolating, categorizing, and handling defective products for proper disposal, to ensure defective products do not proceed to subsequent stages while promptly locating root causes. For product quality incidents, the Company immediately initiates quality incident investigations and conducts post-incident reviews from both management and technical perspectives. Analysis results and improvement measures are standardized into process and technical upgrades to prevent recurrence.

To manage the recall of defective products sold, Longsys has imple mented several management policies and regulations, including the Company Quality Incident Management Rules, the Longsys After-Sales RMA Handling Procedures, the Customer Return and Rework Operating Procedures, and the Longsys Bulk Return and Exchange Pro . These policies clearly define departmental responsibilities, recall definitions, recall initiation criteria, and the recall handling process. A traceability system is also established at the delivery center, achieving data tracking of all stages including product manufacturing processes, packaging techniques, testing procedures, and packaging stages, ensuring eficient and precise recall execution. In 2025, Longsys reported no product recall incidents.

Metrics and Targets

In the field of quality management and product safety, the Company consistently upholds the "zero major incidents" baseline and prioritizes continuous improvement of customer satisfaction as its core objective. Based on robust overall quality performance, Longsys continues to optimize its quality management system and after-sales processes, targeting RMA (Return Material Authorization) reduction rate as a key improvement indicator directly reflecting systematic enhancements in product reliability and service eficiency. Looking ahead, the Company will maintain stringent control standards, continuously improve full-lifecycle product safety management and strive to deliver more reliable and secure product experiences for customers.

Key Performance Highlights

in 2025，Longsys

did not experience

any product recalls

during the year，Longsys

The relevant fine amount is

did not experience

any major or extraordinary quality incidents

Longsys' Return Merchandise Authorization (RMA) rate has been on a continuous decline. Notably, the RMA rates of the Enterprise-Grade Storage Business Division and Embedded Storage Business Division have decreased by

15% compared to 2024

High-Quality Customer Service

Longsys consistently prioritizes creating customer value as its core principle, building a systematic safeguard framework around this objective. Through a multidimensional customer feedback mechanism, the Company continuously gains insights into market demand, optimizing the quality of its products and services. Looking ahead, the Company will continue to uphold professional service as its foundation, collaborating with customers to co-create a secure, trustworthy, and sustainable digital ecosystem.

Governance

Longsys continues to develop an institutionalized and standardized customer relationship management system. For direct supply customers, the Company has established the Customer Management , while implementing the for agents. The Company is committed to delivering exceptional customer experiences, strictly complying with the Customer Satisfaction to continuously enhance product and service quality.

Longsys has established a robust customer relationship management organizational structure and clear division of responsibilities. The Sales Department of the Operations Center is fully responsible for implementing annual customer satisfaction surveys, while the Agent Management Department collaborates with business units or sales teams to organize product promotions and industry information sharing sessions for agents and end customers. This department also supervises cooperation models between agents and end customers, ensuring reasonable pricing, and jointly building a clear governance framework. For key customers, the Company implements the "Iron Triangle" service model, led by the Sales Department, supported by project managers and product engineers, providing differentiated support in logistics, pricing, and resource prioritization to guarantee supply for key customers during periods of capacity constraints.

Strategy

Customer satisfaction remains central to Longsys' operations, supported by a systematic management mechanism. The Company conducts annua satisfaction surveys covering 60-70 core customers, continuously collecting feedback on quality, delivery, technical support, social responsibility, and environmental protection. All survey results undergo focused evaluation during management reviews, ensuring customer voices directly reach decision-makers. For identified issues, particularly those with low satisfaction scores, the Company develops targeted improvement measures, which are strictly incorporated into the Control Procedure for Continuous Im rovement and Corrective and Preventive Actions for closed-loop tracking and implementation. Through this data-driven closed-loop management, the Company continuously drives substantial service and process optimization, strengthening long-term, stable, and mutually trusted customer relationships.

Risk and Opportunity Management

In response to customer complaints, Longsys has formulated the Mana ement Re ulations on Mass and implemented a rapid-response process for issue resolution. This process ensures coordinated eforts across multiple departments, such as Quality, Engineering, Field Application Engineer (FAE) and Logistics, to conduct thorough investigations and FA root cause analysis around critical links including process flows and logistics, ensuring rapid problem localization and precise traceability.

Upon receiving a customer issue, the relevant Field Application Engineer (FAE) and Customer Quality Engineer (CQE) promptly handle the complaint. If the issue is identified as related to the Company, it will be recorded in the customer complaint system, with a response and verification completed within 24 hours. Agent complaints are received by sales personnel and transferred to the Agent Management Department for investigation and resolution. The Company supports these processes through the Customer Relationship Management (CRM) system and on-site management.

Technical issues are led by the FAE for analysis, while non-technical issues are managed by the CQE, who forms an improvement team to generate an 8D report. Through reviewing quality records, verifying process standards, and analyzing order data, the root cause of the issue can be precisely identified to develop targeted corrective measures. Moreover, all improvement plans undergo efectiveness validation and are managed through a closed-loop process, ensuring continuous enhancement of customer satisfaction and product quality.

To strengthen communication capabilities between agents and customers, and to help end customers understand company products, the Company regularly conducts product and market information training sessions for agents and end customers through both online and on-site modes, systematically training all newly introduced agents. For important customers, joint laboratories are established to facilitate collaborative learning.

Case Strategic Entrepreneurial Roundtable

On November 1, the Strategic Entrepreneurial Roundtable was successfully held at Zhongshan Longsys Storage Industrial Park. Through this strategic roundtable, Longsys elevated its customer relationship management through a high-level, ecosystem-driven approach. By inviting key clients and potential partners, including enterprise decision-makers from the Pearl River Delta region, not only did the company showcase its industrial layout and technological capabilities, but it also efectively positioned itself as an insightful leader and ecosystem connector. The event centered on the "Second Curve"— a core strategic topic of common concern among entrepreneurs—and facilitated in-depth intellectual exchange and trust-building, ranging from shared understanding to methodology discussions. The event aimed to establish long-term, symbiotic strategic partnerships with clients, transforming them from transactional counterparts into collaborative ecosystem partners exploring growth and synergy.

Unveiling of the Longsys-SDMC Joint Innovation Laboratory

On December 5, the Longsys-SDMC Joint Innovation Laboratory was officially launched at the Zhongshan Longsys Storage Industrial Park. The laboratory provides full-process testing capabilities from "joint debugging and scenario verification" to "reliability evaluation", focusing on resolving key pain points in storage and AI terminal compatibility. Leveraging its full-stack technical capabilities in "storage chip design, firmware algorithm development, system-level verification, and packaging and testing manufacturing", Longsys collaborates with SDMC, a global leading AI Home integrated solution provider contributing expertise in terminal devices, system platforms, and global scenarios. Through services including "platform compatibility tuning, reliability and lifespan evaluation, and signal/power integrity verification", the partnership enhances the stability, performance, and energy eficiency of edge AI devices.

Responsible Marketing

Longsys strictly complies with the Advertising Law ofthe People 's Republic ofChina, the Anti-Unfair Competition Law ofthe People 's Republic of , the , and other applicable laws and regulations. In this reporting year, the Company issued the Lon s s Ei ht Red Lines Polic , which explicitly requires adherence to the principles of truthful, accurate, and complete information disclosure. The Company updates its internal marketing policies promptly in accordance with legal requirements and industry dynamics. All external communications made on behalf of the Company must be uniformly released by the Marketing and Brand Department and reviewed by multiple departments, including Legal Afairs and the Board Ofice. The Company commits to strictly relying on actual test data in product promotions, prohibiting any exaggerated or false claims, and encourages all partners, contractors, and suppliers to establish corresponding internal compliance policies.

In addition, Longsys incorporates responsible marketing principles into its regular sales training programs, illustrating marketing standards to its sales staf. These training sessions ensure that sales personnel are fully informed of the Company's commitments regarding its products and services and are well-versed in relevant marketing compliance requirements. This emphasizes adherence to internal sales policies and prohibits employees from making exaggerated or misleading statements or promises beyond the scope of their responsibilities. These eforts guarantee that all marketing activities of Longsys comply with relevant laws and regulations, social norms, and ethical standards

Metrics and Targets

The Company aims to achieve excellence in customer service, ensuring high-quality customer experience while promoting standardized and personalized service development. We are dedicated to maintaining customer trust and loyalty, striving to become our customers' most trusted long-term partner.

The overall response rate of the customer satisfaction survey for this year reached 83%

response rate for automotive-level customers 100%

According to valid questionnaire responses, customer satisfaction rate for enterprise-level clients reached 100%

03

Driving Green Operations, Shaping a Low-Carbon Future

Longsys integrates sustainable development across its entire R&D, production, and supply chain processes, establishing a systematic environmental management system. The Company actively reduces the environmental impact of its operations by improving production processes, increasing the proportion of clean energy, managing pollutant emissions, and promoting ecological conservation. In the circular economy, the Company will continue to promote the waste sorting and recycling, and collaborates with partners to implement environmental management standards. In the future, Longsys will continue to increase its investment in green technology innovation and low carbon R&D, deepen energy-saving transformations in manufacturing, and is committed to providing replicable environmentally friendly solutions for the electronics manufacturing industry, thereby facilitating the green transformation of the industry.

Key Performance Highlights

Longforce Suzhou achieved a 25% decrease in power consumption per unit of revenue in 2025 compared to 2024

Mestor's power consumption per unit of output and greenhouse gas emissions per unit of output significantly decreased in 2025 compared to the previous year, achieving approximately 300,000 kWh of electricity savings through technological upgrades

Longsys did not experience any administrative penalties due to environmental protection violations

Waste treatment compliance rate reached 100% in 2025

SDGs Addressed in this Chapter

P CLEAN WAATER 1 CLMAT 14 LELOW WATER 15 ONLLAND

ESG Material Topics Addressed in this Chapter

Climate change and energy use, Environmental compliance and pollutant management, Ecosystem and biodiversity protection, Water resources utilization, Circular economy and resources use

Climate Change Response

In response to the global trend of climate change, Longsys views proactively addressing climate challenges as a core issue for fulfilling its environmental responsibilities and seizing green development opportunities. The Company has deeply integrated climate governance into its overall strategic planning and operational management. By establishing and continuously improving a greenhouse gas management system, conducting annual carbon emission accounting and tracking, the Company systematically promotes production process improvement and energy structure upgrades.

Governance

Longsys has integrated climate change response into its core governance framework. Leveraging a three-tier ESG governance system consisting of the Board Strategy and ESG Committee, the ESG Management Committee, and the ESG Execution Team, the Company clearly defines the authority and responsibility of each level regarding climate issues, forming a closed-loop management mechanism with top-down deployment and bottom-up feedback. For detailed information on Longsys' climate change governance structure, please refer to the "Sustainable Development Management" section in the "Strengthening the Foundation, Facilitating Stable Growth" chapter of this report.

Strategy

Faced with the common challenge of global climate change, Longsys has deeply integrated proactive climate change response and corporate environmental responsibility into its long-term development strategy, firmly committed to supporting the nationa ambitious goals of "Carbon Peak and Carbon Neutrality". Upholding an open and collaborative philosophy, the Company leverages continuous technological and managerial innovation. Through systematically advancing multi-dimensional initiatives such as clean production, energy efficiency improvement, process improvement, and scientific carbon asset management, Longsys works with its industrial chain partners to drive the green and low-carbon transition of the industrial chain.

Longsys has completed systematic identification and preliminary assessment of climate-related risks and opportunities. The Company has systematically categorized key risk types, including both physical and transition risks, covering dimensions such as policy and regulation, market, and technology. We have conducted in-depth qualitative and quantitative analyses and assessments of the identified climate risks, analyzed their potential business impacts, and formulated corresponding response and management measures.

Longsys Climate-related Risks and Opportunities Identification List

Risk and Opportunity Management

Longsys has systematically integrated the management of climate-related risks and opportunities into its comprehensive risk management framework. By establishing specialized mechanisms for identification, assessment, and response, the Company continuously enhances its management capabilities regarding climate change issues. For details on the risk management process and control measures, please refer to the "Sound and Compliant Operations" section in the "Strengthening the Foundation, Facilitating Stable Growth" chapter of this report.

Mestor categorizes typhoons as a primary extreme climate risk and has systematically implemented typhoon and flood prevention management measures. These include reinforcing outdoor equipment against wind, strengthening protection for hoisting openings, doors, and windows, conducting regular maintenance on drainage systems, maintaining emergency flood prevention supplies, coordinating with government emergency dispatch, and reasonably arranging production operations to fully ensure employees' safety and operational stability.

Metrics and Targets

Longsys has integrated climate change response into the core agenda of its corporate operations and development. By setting clear energy conservation, emission reduction targets, and quantitative indicator systems, and relying on systematic management initiatives and technological investment, the Company steadily advances the implementation of related goals.

Longforce Suzhou defined specific energy conservation and emission reduction targets in 2025, including a 10% reduction in energy consumption per unit output value and increasing the proportion of green electricity usage to 10%. To systematically track and promote target achievement, the Company established a monthly monitoring mechanism for green electricity procurement and execution. Since July 2025, the actual monthly green electricity usage ratio has reached 20%, exceeding the set target ahead of schedule. Furthermore, to comprehensively understand its carbon emissions and evaluate reduction effectiveness, Longforce Suzhou set a goal for 2025 to conduct annual third-party verification of greenhouse gas emissions and completed the verification and Certification of its 2025 greenhouse gas emissions.

Mestor has identified controlling energy consumption per unit output value and continuously improving energy utilization efficiency as key energy management targets. It has established a systematic monitoring, analysis, and review mechanism covering daily, weekly, and monthly cycles to continuously identify energy-saving potential in operations. Through targeted technological upgrades and production schedule optimization, Mestor achieved its set target for energy consumption per unit output value in 2025, with an overall electricity saving rate of 2.3%. Technological upgrades resulted in electricity savings of approximately 300,000 kWh, efectively driving energy eficiency improvements and a reduction in carbon emission intensity.

Zilia also continuously implements emission management plans, conducting ongoing measurement and monitoring of greenhouse gas emissions in accordance with international standards.

Key Performance Highlights

In 2025, Longforce Suzhou achieved a greenhouse gas emission reduction of

1,156.51tons

In 2025, Mestor achieved electricity savings of approximately

300,000kWh

with an overall electricity saving rate of

2.3%

Environmental Management

Longsys has established and continuously improved a scientific and systematic environmental management system, fully implementing the ISO 14001 environmental management standard. By refining institutional norms, optimizing management processes, and promoting technology application, the Company strengthens the end-to-end identification and control of environmental risks. All operating units strictly adhere to standardized environmental management procedures, efectively reducing the impact of production and operational activities on the surrounding environment. The Company continuously improves its long-term management mechanisms, promoting the deep integration and coordinated development of ecologi cal environmental protection and business operations.

Regarding institutional guarantees, the system documentation is continuously improved:

Longforce Suzhou has developed the Environmental Health and and corresponding procedural documents based on ISO 14001 and ISO 45001, established a compliant energy management system and compiled the Energy Management System Manand other documents in accordance with energy management system standards like ISO 50001;

Mestor revised the Energy and Resource Management Policy, constructing a clear-goal, well-defined responsibility, and standardized-process system for energy conservation, emission reduction, and climate governance;

Zhongshan Longsys has established a closed-loop management mechanism from target setting to performance evaluation through a series of policies including the Control Procedures for Energy Ob-, , , and has obtained ISO 50001 Energy Management System Certification.

As of the end of the reporting period, Longforce Suzhou, Mestor, and Zhongshan Longsys have all passed ISO 14001 Environmental Management System Certification, with Longforce Suzhou's energy management system also having passed external Certification.

Environmental Management System

Longsys has established a three-tier environmental governance system consisting of the "Strategy and ESG Committee – ESG Management Committee – ESG Execution Team". This structure oversees and coordinates the advancement and execution of the company-wide environmental strategy, guiding subsidiaries in improving their policies to ensure the effective operation and continuous improvement of the management system. Under this framework, the Company has established a scientific energy and environmental management system, defining management policies, objectives, and responsibilities. Greenhouse gas management is treated as a key component, with strict adherence to standards like ISO 14064 for inventorying. Annually, each business unit comprehensively calculates, investigates, and records emission data in accordance with the Greenhouse Gas Mana ement and GHG Protocol requirements, ensuring traceabilit and verifiability, and achieving normalized management of energ performance and carbon control.

Response to Environmental Risks

Longsys has established a standardized mechanism for identifying and addressing potential hazards at all production bases, ensuring systematic identification and closed-loop control of environmental risks.

Longforce Suzhou conducts comprehensive inspections on a monthly basis, strictly enforces tracking of rectification measures to ensure timely resolution of environmental hazards, and has formulated an emergency response plan for sudden environmental incidents. This plan covers emergency organizations, response procedures, post-incident handling, and support measures, defining a standardized process for managing environmental pollution incidents. An annual drill plan is developed based on the emergency plan. Longforce Suzhou validates the plan's efectiveness through whole-process practical drills, followed by review and assessment. Furthermore, Longforce Suzhou develops specific improvement measures to address any identified issues, continuously enhancing emergency response capabilities.

Mestor has established a systematic environmental risk emergency management system. This includes a comprehensive contingency plan for sudden environmental incidents and workplace safety accidents, as well as specific response plans for scenarios such as chemical leaks, fires, and explosions. An emergency command structure led by the primary responsible person is in place, with clearly defined tiered response procedures and responsibilities for each team. Mestor continuously strengthens daily controls through routine inspections, regular monitoring, and annual assessments. Additionally, we organize comprehensive and specialized emergency drills annually. The contingency plans are promptly revised based on regulatory updates and process changes. Through these mechanisms, the system ensures a rapid response upon the occurrence of an incident, executes endto-end operations from pollution control and emergency response to monitoring and remediation, and strictly adheres to information reporting regulations, thereby guaranteeing the relevance, operability and sustained efectiveness of the emergency plans.

Zhongshan Longsys has established an annual identification and dynamic update mechanism for environmental factors. It systematically assesses impacts related to water, air, hazardous waste, and energy consumption. Based on this assessment, Zhongshan Longsys develops a list of significant environmental factors and targeted control measures. It implements risk control through training, monitoring, and specialized drills, and regularly organizes on-site response drills for incidents such as environmental leaks to test and optimize the efectiveness of emergency plans. All related management activities are strictly carried out in accordance with documented procedures, ensuring the standardization and continuous operation of environmental risk management.

Key Performance Highlights

Longsys

did not experience

any incidents of administrative penalties due to violations of environmental protection regulations

Environmental Awareness Training

Longsys conducts regular, specialized environmental protection training for all employees annually. The training content is closely aligned with industry characteristics and the Company's operational practices. We employ participatory teaching methods such as case studies and scenario simulations to enhance the training's relevance and practical efectiveness.

In 2025, Longforce Suzhou continued to strengthen environmental awareness and capacity building for all personnel, systematically conducting four specialized training sessions. Such sessions covered fundamental environmental knowledge, energy management policies and regulations, hazardous waste management, and wastewater and waste air emission management. Hazardous waste and wastewater or waste air emission management were newly added training topics for the year. All training was delivered online, achieving full coverage of all plant personnel and providing strong support for the thorough implementation of Longforce Suzhou's environmental management system.

Zhongshan Longsys Conducted Environmental Protection Training

To adapt to dynamic updates in environmental regulations and strengthen control requirements for new pollutants, Zhongshan Longsys organized specialized environmental compliance training for relevant employees. The training covered new pollutant management policies, interpretations of fundamental environmental regulations, and incorporated risk warnings based on typical industry violation cases. Through this training, employees systematically gained knowledge of the latest environmental compliance requirements, enabling them to more accurately identify and address environmental risks in their daily work. This provided strong support for the Company's sustainable operations and compliance management.

Green Operations

Longsys integrates systematic management of resources and energy into the core of its operational improvement. By continuously advancing process optimization, strengthening the recycling and reuse of water resources, and enhancing end-of-pipe pollution control facilities, the Company comprehensively improves resource eficiency and environmental performance throughout its production and business operations.

Energy Conservation and Consumption Reduction

Longsys continuously enhances energy efficiency through systematic management and the application of advanced technologies. In daily operations, the Company implements detailed energy consumption control measures, including seasonal adjustment of ofice air-conditioning temperatures and fresh air volumes, intelligent control of lighting and streetlights, and preferential activation of high-efficiency units. It also focuses on conducting energy-saving renovations in key areas such as the compressed air system, HVAC system, water treatment system, and lighting system. Meanwhile, the Company actively introduces energy-saving technologies, participates in base-wide energy efficiency collaboration projects, gradually replaces ineficient equipment, and optimizes equipment start-up, shutdown, and operational modes during the production process, thereby systematically reducing overall energy consumption.

Longforce Suzhou

Centralized Optimization of Vacuum Systems: The 7 ICOS equipment units in the post-processing stage of the AP line were retrofitted to connect their vacuum pumps to the centralized facility system, achieving an annual electricity saving of approximately 49,000 kWh.

High-Eficiency Upgrade of Lighting Systems: Existing 18W LED lamps were replaced with more eficient 9.5W models, resulting in an annual electricity saving of 12,000 kWh.

Energy Eficiency Enhancement of Key Equipment: Higheficiency, first-grade energy-saving pumps with a 96.5% eficiency rating were introduced to replace older pumps with eficiency below 90% in systems such as chilled water pumps, significantly improving overall system energy performance.

Longsys deeply integrates energy-saving principles into daily operations by promoting specific behavioral guidelines to engage all employees. These include turning of equipment power upon departure, switching of lights and air conditioning after meetings, strictly adhering to temperature control standards, and promoting double-sided paper usage. The Company also conducts regular awareness campaigns and training sessions to continuously foster a culture of energy conservation, enhancing employee awareness and sense of responsibility. As a result, energy and emission reduction eforts are transformed into systematic organizational actions and sustainable mechanisms, efectively advancing green and low-carbon development. Zilia further improves unit energy eficiency through the adoption of more eficient equipment and intelligent controllers.

In addition, Mestor systematically advances energy conservation and consumption reduction from both management and technological perspectives:

From management perspective, a systematic monitoring, analysis, and review mechanism has been established with daily, weekly, and monthly cycles. This mechanism is closely coordinated with production, engineering, and planning departments to dynamically identify and implement energy-saving opportunities.

From technological perspective, Mestor has implemented a series of optimization and retrofitting initiatives, including reducing supply pressures for compressed air and nitrogen, optimizing cooling tower operating modes, achieving intelligent interlocking control between exhaust ventilation systems and process equipment, and continuously phasing out and replacing high-energy-consuming equipment. By integrating refined management practices with engineering solutions, the Company has efectively reduced energy consumption and carbon emissions.

Case Longforce Suzhou's Participation in Green Transformation Exchange Initiatives

To systematically advance energy conservation, emission reduction, and energy eficiency improvement, Longforce Suzhou actively participates in a series of green transformation exchange initiatives organized by the industrial park. Through on-site visits to the "SIP-E Enterprise School" program, the Company examined advanced technical equipment such as high-eficiency magnetic levitation compressors. It also attended the "Cleanroom Plant Energy Eficiency Salon" to learn key technologies for optimizing HVAC systems, and joined the "Green Boat Salon" for specialized discussions on compressed air system energy savings, electricity cost management, and low-carbon development pathways. These exchanges, spanning technology, policy, and industry trends, have provided Longforce Suzhou with direct insights into identifying energy saving potential, adopting advanced technological renovation solutions, and understanding green power trading mechanisms. The experience has laid a solid foundation for subsequent actions, including equipment upgrades, process optimization, and enhanced energy cost control.

Water Resource Management

Longsys strictly complies with national and local laws and regulations related to water pollution prevention and control, including the Water Pollution Prevention and Control Law of the People's Republic of China, the Regulation on the Administration of Permitting of Pollutant Discharges, and the Measures for Pollutant Discharge . It guides and promotes its subsidiaries in establishing systematic water pollution prevention and control management systems, clarifying management responsibilities, and ensuring full compliance with legal and regulatory requirements throughout the entire process of wastewater treatment and discharge.

Longforce Suzhou has established clear requirements for monitoring, inspection, and pretreatment through its Wastewater Mana ement Measures, implementing classified control over wastewater: domestic wastewater is pretreated before being discharged into the municipal system through pipelines, while industrial wastewater is entrusted to qualified third-party units for treatment, with complete records maintained throughout the process, ensuring full compliance across the entire wastewater management lifecycle, from collection to discharge. In 2025, Longforce Suzhou further enhanced water resource utilization efficiency through a comprehensive set of measures, including the introduction of water-saving equipment, implementation of concentrate water recovery and reuse, replacemen of ultrafiltration membranes to restore system performance, and systematic identification and repair of water pipeline leaks across the facility. These initiatives collectively contribute to a significant reduction in production water consumption.

Additionally, Longforce Suzhou continues to implement reclaimed water reuse for cutting and grinding wastewater. Over time, the performance of ultrafiltration membranes, the core components in the reuse system, degrades due to long-term operation. Through annual replacement, the system's overall water recovery rate has been improved by 5%–10%, reducing wastewater discharge and decreasing the intake of fresh water, thereby further strengthening the Company's water recycling capabilities.

Longforce Suzhou has developed a series of treatment measures for the production wastewater from diferent pollution-generating production processes:

Mestor has established a water resource management system centered on its Energy and Resource Management Policy. Through the installation of comprehensive water-saving devices, upgrading process cooling systems to a closed-loop circulation mode, implementing classified wastewater treatment (such as pre-treating domestic wastewater for municipal sewer discharge and ensuring industrial wastewater meets discharge standards), and strengthening water conservation awarenes across all employees, the Company has systematically improved water use eficiency. In 2025, Mestor achieved a reclaimed water reuse volume exceeding 2,005 m³,

with both the compliance rate of discharged wastewater and the coverage rate of water-saving devices reaching 100%, effectively reducing freshwater consumption.

Zhongshan Longsys implements classified and compliant disposal of waste water generated during production operations in accordance with its Envi-. Domestic wastewater is pre-treated through a three-stage septic tank system on-site before being discharged into the municipal sewage network, ultimately undergoing centralized treatment at a wastewater treatment plant to ensure compliance before discharge. Industrial wastewater is collected and stored centrally, then entrusted to qualified third-party professional institutions for standardized treatment. This approach ensures systematic fulfillment of water pollution prevention responsibilities, guaranteeing full compliance and environmental safety throughout the water resource management process.

Zilia has established a well-structured waste management system through initiatives focused on water reduction and reuse, effectively preventing environmental pollution.

Key Performance Highlights

The annual cumulative volume of recycled water in Longforce Suzhou reached

32,663,376 m

with a recycling rate of

98.79%

In 2025, Mestor achieved a reclaimed water reuse volume exceeding

2,005 m3

with both the compliance rate of discharged wastewater and the coverage rate of water-saving devices reaching

100%

Waste Gas Emission Management

Longsys strictly complies with relevant regulations, such as the Regulation on the Administration of Permitting of Pollutant Discharges, the Measures for Pollutant , and the . It guides its subsidiaries to systematically establish waste gas management mechanisms, ensuring compliance with emission standards, and standardizing the application and registration processes for pollution discharge permits.

The Company prioritizes the use of raw materials with low volatile organic compounds, and deploys professional waste gas collection and treatment facilities. It implements classified collection and targeted treatment measures, supported by monitoring systems to ensure stable compliance with emission standards. Longforce Suzhou has formulated the Waste Gas Mana ement Measures. For waste gas from diferent sources, such as process waste gases, waste gases from hazardous waste storage warehouses, laboratory waste gases, and kitchen cooking fumes, it has set up special treatment processes and equipment, and constructed a complete waste gas treatment system. In 2025, Longforce Suzhou actively and systematically participated in the "Three-Year Comprehensive Governance Action for Volatile Organic Compounds (VOCs)" organized by the Suzhou Industrial Park Ecological Environment Bureau. By implementing relevant management requirements and technical upgrades, the Company successfully passed the on-site inspection by environmental authorities in December.

Zhongshan Longsys adopts a "dry filtration + dual-stage activated carbon adsorption" process to systematically treat production waste gases. The exhaust first passes through a dry filter to remove particulate matter, then undergoes adsorption of gaseous pollutants through a dual-stage activated carbon system, ensuring compliance with emission standards. In 2025, Zhongshan Longsys commissioned a third-party testing agency to conduct emissions monitoring on the treated waste gases. The results confirmed that all measured parameters met the prescribed emission limit requirements.

Mestor has systematically advanced the full-process management of waste gases. At the source, it prioritizes the substitution of high-VOCs raw materials with low-VOCs alternatives. During operations, Mestor has developed the Operating Instructions for Waste Gas Treatment System to enable fine-grained operational control. In the emission monitoring phase, Mestor has simultaneously introduced third-party professional testing and installed an online monitoring system, enabling continuous and precise oversight of treatment efectiveness and compliance. This has established a closed-loop management system covering source prevention, process control, and end-of-pipe monitoring.

Waste Management

Longsys strictly complies with relevant laws and regulations, including the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes and the National Catalogue of Hazardous , and has established a comprehensive waste management system cov ering all stages of production and operations. The Company guides and promotes its subsidiaries to develop specialized management systems, ensuring that waste is subject to standardized and controlled handling.

Longforce Suzhou has formulated internal regulations such as the W t Management Measures and the Hazardous Waste Management Measures, clearly defining classification standards and operation specifications for industrial solid wastes, domestic wastes and hazardous wastes. It has also clearly specified management requirements and responsible entities for the whole process of storage, collection, transfer and disposal, and realizes systematic and closed-loop control of wastes:

Industrial solid wastes include empty wafer boxes, waste mold cleaning sheets, cartons, etc., recyclable wastes are marked with green labels, and non-recyclable wastes are marked with yellow labels;

Domestic wastes cover daily ofice wastes and kitchen wastes, which are marked with white labels;

Hazardous wastes are identified and managed in accordance with the marked with red labels, and all are entrusted to qualified third-party institutions for waste disposal.

In 2025, Longforce Suzhou systematically updated its hazardous waste inventory based on the latest environmental impact assessment report: one production material previously classified as hazardous waste was removed, while two new categories related to wastewater treatment and three additional laboratory-related hazardous wastes were added, ensuring classification more accurately reflects actual operational conditions. The Company has set a target of 100% compliance in hazardous waste disposal and requires annual on-site audits of contracted disposal vendors. Beyond verifying qualifications, audits include sampling documentation and reviewing surveillance records to ensure the entire disposal process is conducted in accordance with regulations. Through dynamic inventory updates and audit mechanism, the Company continuously enhances its full-process control over hazardous waste.

Mestor has systematically advanced the full lifecycle management of waste. In line with the updated National Catalo ue of Hazardous Wastes and the requirements of the "Waste-Free City" initiative, the Company revised its , clearly defining responsibilities across the entire process, from source segregation to compliant disposal. All waste is now stored in a classified manner, with digital traceability implemented throughout. The reuse of materials such as extraction trays and wafer packaging boxes has been standardized. In 2025, Mestor achieved 100% harmless treatment of hazardous waste and an 88% resource utilization rate for general solid waste, with all hazardous waste transfer manifests fully archived. This establishes a complete management closed loop from policy formulation to execution.

Zhongshan Longsys strictly complies with national and local environmenta protection regulations, formulating and implementing relevant waste management systems such as the Control Procedure for Hazardous Chemicals and the Hazardous Substance Mana ement Procedures. Waste is managed through systematic classification, with all hazardous waste entrusted to thirdparty units holding the appropriate treatment qualifications for standardized disposal. In 2025, to meet regulatory and safety requirements for the proper storage of hazardous waste, Zhongshan Longsys established a dedicated hazardous waste storage warehouse. This has enabled clear categorization and orderly storage. The Company has set a target of 100% compliance in waste disposal for the year, ensuring the legality and closed-loop management of waste throughout its entire lifecycle.

Key Performance Highlights

In 2025, 100% of the wastes were handed over to qualified units for treatment to qualified units for treatment

In 2025, the compliant treatment rate of wastes reached 100%

During the reporting period, Mestor did not experience

any significant adverse impacts on employee health or community environment caused by pollutant emissions.

Noise Management

Longsys systematically implements noise control requirements in its production and operations, guiding all production bases to manage noise in accordance with relevant laws, regulations, and standards, aiming to minimize impacts on the surrounding environment. For example, Longforce Suzhou has established the Factor Noise Mana ement Measures, conducting self monitoring of factory noise in compliance with pollution discharge permit requirements and applicable standards, ensuring effective and compliant control of noise emissions during production. Mestor has established a systematic noise management mechanism, clearly defining monitoring parameters, frequency, and limit values for factories and sensitive areas based on relevant regulations and internal procedures, enabling continuous control of noise emission levels.

Key Performance Highlights

Since the operation, Longforce Suzhou, Mestor, and Zhongshan Longsys

have not experienced

any events of non-compliant discharge of pollutants (sewage, waste gas, noise).

Circular Economy

Longsys systematically integrates the concept of a circular economy into its operations by establishing and continuously improving a resource recycling and reuse system, thereby enhancing resource utilization efficiency and reducing reliance on primary resources.

Mestor has established a comprehensive resource circular utilization system. For materials generated during production, such as extraction trays, wafer carriers, and packaging cardboard boxes, the Company has defined clear reuse standards and management procedures. It has also signed dedicated packaging recycling agreements with suppliers, building a closed-loop recycling network covering wafer carriers, cardboard packaging, extraction trays, and wafer edge trimmings. Through this system, the recycling rate of wafer carriers has reached 98%, exceeding the target, while packaging cardboard and other materials achieve 100% recycling. Extraction trays are returned to suppliers for cleaning, calibration, and sorting before being reintroduced into production. This approach significantly improves resource eficiency and demonstrates tangible results in circular resource management.

Longforce Suzhou has established an internal recycling system for packaging materials, promoting the repeated use of trays and other packaging components through cross-departmental collection and internal material circulation. This initiative has efectively reduced the need for new packaging procurement, enhancing resource utilization eficiency while simultaneously minimizing waste generation.

Zilia actively practices the concept of circular economy, with a total of 0.07 tons of non-hazardous waste reused and 1.75 tons of renewable raw materials used.

Ecological and Environmental Protection

Longsys and its subsidiaries systematically adhere to national environmental protection regulations during project planning and construction, strictly implementing environmental impact assessment (EIA) management to ensure all projects legally complete the EIA process. During the site selection phase, the Company proactively avoids environmentally sensitive areas such as ecological protection red lines, nature reserves and drinking water source protection areas. Additionally, measures such as the use of low-noise equipment and the construction of rainwater collection systems are implemented to minimize disturbance to surrounding water, soil, and vegetation resources.

During the operational phase, the Company strictly fulfills all environmental protection requirements stipulated in the EIA approval documents, ensuring comprehensive compliance of production and business activities. Longforce Suzhou's pollution discharge permit management category has been downgraded from "key management" to "registration management", reflecting recognition by regulatory authorities that the facility's environmental impact is at a relatively low level. This change underscores the continuous progress made by Longforce Suzhou in pollution control and environmental management. The Company will continue to rigorously comply with environmental regulations to ensure ongoing alignment with legal and regulatory standards.

Furthermore, the Company has established a systematic ecological and environmental risk prevention and control mechanism, driving all subsidiaries to implement relevant control requirements. For example, Longforce Suzhou has systematically conducted risk identification and assessment for potential ecological and environmental impacts arising from its operations, covering key areas such as wastewater, waste gas, noise, general solid waste, and hazardous waste. Based on the assessment results, clear control measures, responsible departments, and completion timelines have been defined to ensure effective implementation of risk mitigation actions.

List of Major Environmental Factors of Longsys (Partial)

04

Growing Together, Pioneering the Future

The Company always adheres to a people-oriented cultural philosophy, protecting the rights and interests of employees while focusing on talent retention and attraction. We continuously refine our talent philosophy and development strategies, and have built a diversified career development system. We have also developed a science-based, equitable, and transparent compensation system and robust communication platforms. Furthermore, we have created a tiered training system with dual promotion pathways to fully unlock employee potential and provide expansive growth opportunities. Meanwhile, Longsys consistently pays attention to occupational health and safety measures to ensure a safe and reliable working environment, laying a talent foundation for sustainable development.

Key Performance Highlights

The number of courses on Longsys' online learning platform has cumulatively exceeded 1,700, with over 3,100 exams published, achieving a pass rate of 97%

Longforce Suzhou and Zhongshan Longsys have successfully obtained the ISO 45001 International Certification for Occupational Health and Safety Management Systems

Investment in occupational health insurance was RMB 67.28 million

SDGs Addressed in this Chapter

ESG Material Topic Addressed in this Chapter

Employees

Protecting Employee Rights

Longsys has systematically built key processes such as compliant employment management, talent acquisition, and compensation and benefits, supported by diversified and democratized communication channels. We actively listen to and respond to employee voices, ensuring that the legitimate rights and interests of every employee are respected and safeguarded.

Compliant Employment

Longsys strictly implements regulations such as the Labor Law of the People's Republic of China, the Corporate Culture and Values , and the . We have comprehensively revised the Emplo ee Handbook to clarify statutory holidays, leave management procedures, employee benefit standards, and the code of conduct. This ensures clear articulation and standardized implementation of fundamental labor rights provisions, providing employees with definitive behavioral guidelines and eliminating any incidents that may infringe upon employee rights. Furthermore, we have established and released a series of regulatory documents to standardize employment management, including the Non-Discrimination Management Measures, the Disciplinary Action Management Measures, the Measures for the Control of Internal and External Communication, the Anti-Forced Labor Management Measures, the Measures for Special Protection ofChild Labor andYoun Workers, the Management Measures for Freedom ofAssociation and Collective Bargaining Rights, the Procedures for the Administration of Labor Protection of Female Employees.

Equal Employment

The Company consistently upholds the philosophy of "equality, respect, openness, and inclusion", strictly prohibiting any form of discrimination, harassment, or threat based on gender, ethnicity, geographical origin, religion, or marital/parental status. We have comprehensive protective measures in place to legally safeguard employee rights and interests. In recruitment, we strictly follow the standardized recruitment process that prohibits child labor. We have also formulated relevant internal policies that firmly prohibit any form of forced labor. At the end of the reporting period, no incidents of child labor, forced labor, or major labor disputes occurred within the Company.

We are committed to cultivating a diverse and inclusive workforce with hundreds of overseas employees and over 100 ethnic minority employees, of whom 39.8% are women. Female employees receive full welfare guarantees, including dedicated nursing rooms equipped with sofas and tables in ofice areas to cater to specific needs. Additionally, we regularly organize various warm initiatives to cultivate a workplace atmosphere characterized by mutual respect, equality, and care.

Employee Communication

Longsys attaches great importance to communication between em ployees and management, regarding employee voice as an invaluable asset for corporate development. To enhance efective communication, the Company has established a complaint management mechanism and an appeals process for performance evaluation outcomes, ensuring feedback channels are unimpeded and resolution outcomes are fair.

Innovating Communication Channels to Enhance Employee Belonging

In 2025, Longsys shared QR codes for employee feedback in meeting rooms. Employees could scan the codes to report workplace issues, which were collected by designated personnel and forwarded to relevant departments for follow-up. Non-confidential feedback was periodically released through "Employee Voice" posters to update progress.

In May 2025, Longsys launched the "Cofee with the Boss" activity. Posters and registration QR codes were published via the dynamic window platform. This initiative aimed to better bridge communication between employees and management, strengthening employees' sense of belonging and identification with the Company.

In addition, the Company conducts comprehensive employee satisfaction surveys, focusing on corporate governance, career development, and collaboration issues. Based on the survey results, Longsys has established a series of improvement initiatives, primarily including establishing training programs and mentorship systems, conducting regular market salary research, optimizing benefits and communication mechanisms, setting innovation-driven incentive goals, and enhancing cross-departmental information sharing. The comprehensive improvement plan, based on the employee satisfaction survey results, aligns closely with employee needs. It is designed to promote employee career development through a continuous feedback loop and enhance overall employee satisfaction. The HRBP team closely collaborates with business departments to ensure the efectiveness and feasibility of these initiatives.

Improvement Plans by Department Based on the Employee Satisfaction Survey

HRBP Collaborative Planning

The HRBP team closely collaborates with departments to ensure alignment of improvement plans with the Company's overall strategy and departmental objectives. The HRBP team works with departments to develop and implement these plans, providing necessary support and resources.

Detailed Reporting and Plan Formulation

Each department is required to provide a detailed report covering their employee engagement and organizational health performance, as well as specific improvement suggestions. These reports serve as the basis for improvement plans to ensure the relevance and efectiveness of measures.

Measure Tracking and Feedback Collection

The implementation of improvement plans by each department is regularly tracked and evaluated to ensure efectiveness. Employee feedback on improvement measures will also be incorporated into the evaluation framework to enable timely adjustments and optimizations.

Talent Attraction

The Company attaches great importance to the development of a robust talent pipeline and continuously expands its talent recommendation channels to ensure a long-term, stable supply of talent for sustainable growth. In 2025, the Company focused its recruitment efforts on two core objectives: meeting business development needs and reserving core talent. Talent selection was based on academic qualifications, English proficiency, and professional alignment. We established an integrated online-onsite recruitment system. The Company established an efficient end-to-end recruitment process spanning 13 provinces by integrating campus recruitment presentations, on-site assessments, online resume submissions, and virtual interviews into a unified hiring workflow.

We collaborated with

41

universities

including Project 985 universities

16

Project 211 universities 14 recruited over fresh graduates in total 175

The Company also emphasizes collaboration between industries, universities, and research institutes. In 2025, we signed project cooperation agreements with Guangdong University of Technology and Anhui University, and established university-industry cooperation projects with multiple other universities. These collaborations focus on jointly building laboratories, tackling core technologies, deepening integration between industry and education, cultivating application-oriented innovative talents, and thereby promoting technology transfer, ultimately serving industrial demands.

Case Longsys Collaborates with Universities

In terms of cooperation between industry, academia, and research institutions, the Company has systematically promoted the following initiatives since 2020:

Establishing Strategic Cooperation: We have established strategic cooperative relationships with universities such as Guangdong University of Technology.

Defining Areas of Cooperation: We prioritize storage controller chip development, commercialization of scientific and technological achievements, and integration between industry and education.

Deepening Project Implementation: We actively participate in government-led projects between industry, academia, and research institutions, jointly apply for national and provincial-level research projects, and conduct targeted R&D based on business needs to cocreate a collaborative innovation ecosystem.

Employee Compensation

Compensation System

In compliance with local laws and regulations, Longsys also developed the Individual Performance Mana ement Measures and the Organizational Performance Management Measures to safeguard employees' rights, interests, and compensation benefits to the fullest extent. Our ability to maintain industry competitiveness and provide competitive compensation and benefits are critical factors in attracting and retaining talents. We also monitor industry developments and market dynamics, regularly conducting comprehensive reviews and evaluations of the competitiveness, fairness, and incentive effectiveness of our compensation system. Additionally, Longsys updates its performance management and implements performance improvement plans for employees with lower performance scores. During the reporting period, Longsys paid a total of RMB 1.518 billion in employee compensation.

During the reporting period

Longsys paid a total of

RMB1.518billion

in employee compensation

Employee Benefits

Longsys strictly follows the Labor Law ofthe People's Republic ofChina and other relevant regulations, and provides statutory benefits like "five insurances and one fund" based on employment contracts. While ensuring employees' base salaries, the Company also ofers overtime allowances in accordance with laws and regulations, depending on overtime hours.

Adhering to an employee-centric philosophy, Longsys focuses on employee care and is committed to providing a comprehensive, multi-tiered welfare system to enhance employees' sense of belonging and team cohesion. In 2025, the Company provided employees with various welfares, covering club activity funds, festival benefits, daily and carnival event expenses, annual health checks, birthday gifts, and marriage and childbearing gifts. Additionally, subsidies are provided for employees working at the Company's key industria parks. We also offer sports facilities, a staff cafeteria, and other infrastructure.

Case Longsys Engineers' Day Activities

On October 24, 2025, as a featured theme activity of this quarter's co-creation space for storage culture, the Longsys Engineers' Day event was launched simultaneously across five venues in Shenzhen, Zhongshan, Shanghai, and Chengdu. Through onsite challenge competitions, the event delivered an exhilarating and joyful festive experience for all engineers across the Company.

Case Halloween Themed Celebrations

As Halloween approached in 2025, Longsys hosted a creative costume party at its Americas office. Employees dressed in distinctive Halloween costumes to compete in the contest, enjoying a delightful lunch and desserts during the event. The event fostered interaction and idea exchange among employees in a relaxed, joyful atmosphere.

Promoting Employee Development

Longsys always emphasizes the comprehensive development of employees. By continuously creating a systematic training system and multilevel career development paths, we support employees in enhancing their professional skills and achieving personal value.

Employee Training

Outstanding talents in the organization are the key force driving the implementation of our corporate strategy and the achievement of business goals. To identify and cultivate more high-potential employees, Longsys has established a series of training management regulations, including the Training Management Measures the ExternalTraining Management Measures, and the Training Instructor Management Measures. With a threedimensional training system comprising five modules, and an online learning platform, we continuously enhance our employee learning system, ensuring efficient learning support, unlocking employee potential, and enhancing leadership, professional expertise, and general skills. This systematic approach lays a robust talent foundation for the Company's stable development.

Longsys Training System

The Company's 2025 training indicators encompass five key dimensions: training effectiveness, completeness of the training system, training coverage, return on investment (ROI) for training programs, and capability enhancement of the training team. Additionally, the Company actively supports employees' continuing education by establishing dedicated support mechanisms. We also ofer partial reimbursement for examination related expenses of employees based on relevant policies. During the year, multiple employees obtained advanced academic qualifications while employed, and some employees proactively applied for further education. These eforts have yielded remarkable outcomes in talent development. In 2025, Longsys invested a total of RMB 3.24 million in training programs. A total of 4,446 employees participated in training2, achieving a coverage rate of over 90%, empowering employee growth and driving organizational innovation.

Case Zilia Initiates Leadership Training Program

Zilia initiated a four-month leadership development program in September to systematically enhance the comprehensive competence and managerial efectiveness of its leadership team. Targeting all company managers, the program aims to cultivate an outstanding leadership team through practice-oriented curriculums.

Career Development

Longsys provides employees with clearer career advancement paths by establishing a structured career development system comprising six sequences: R&D, professional skills, management, technology, support, and production. It adheres to the principles of fairness and justice, employing a comprehensive evaluation mechanism that balances values and performance. This holistic approach considers employees' core values, professional qualities, technical abilities, and work outcomes. Within this system, employees meeting the standards can choose either further advancement within their specialty or apply for horizontal development across different sequences. Outstanding talents with remarkable performance and full competence for target grades may apply for exceptional grade skipping promotions. The promotion process involves three key steps: recommendation by department supervisors, professional assessment by the human resources department, and resolution by the promotion review meeting, ensuring objective and scientific talent selection.

Longsys has also established a professional systematic performance management system. Through a seven-step process— self-assessment by employees, evaluation by superiors, leadership assessment, recording of critical behaviors, result ranking, performance calibration, and feedback— we categorize employee performance into six levels. Critical HR decisions such as annual bonus distribution, promotion selection, salary adjustment, and excellence awards are mainly based on these evaluation results. Additionally, Employees who are dissatisfied with their assessment may initiate an appeal for performance review. For employees not meeting performance standards, we initiate a performance improvement plan and ofer targeted coaching to help them achieve expected performance targets.

Strengthening the Safety Barrier

Longsys prioritizes employees' health and safety above all else. We have established a comprehensive occupational health and safet management mechanism and conduct systematic safety training on a regular basis to enhance employees' safety awareness and risk prevention capabilities. Our goal is to create a safe and healthy workplace that effectively identifies, evaluates and manages work environment risks while safeguarding employees' physical and mental well-being achieving refined and efective safety management. In 2025, the number of workplace fatalities and severe injuries at Longsys was zero, and the investment in work-related injury insurance and production safety liability insurance was 67.28 million Yuan, covering 100% of employees.

Safe Production

Longsys strictly complies with relevant laws and regulations, such as the Work Safety Law ofthe People 's Republic ofChina and the Fire . We have established a comprehensive internal safety management system, including the Safety Operation Control Procedure, the Hazard Identification and Risk Assessment Control Procedure, and the Emergency Preparedness and . These systems integrate health and safety risk identification into all processes to safeguard employee well-being. As of the end of the reporting period, Longforce Suzhou and Zhongshan Longsys have successfully obtained international Certifications for ISO 45001 Occupational Health and Safety Management System.

Safety Governance Structure

We have set up a comprehensive occupational health and safety management system that enables end-to-end identification, evaluation and control of health and safety risks, ensuring comprehensive protection of employees' physical and mental well-being and workplace safety. In Zhongshan Longsys, the Safety Production Committee was established as the Company's highest safety decision-making body. The Company's principal responsible person takes on the role of the committee's director. The Company's safety manager works as the Executive Director, while the Company's safety supervisor is the deputy director with department heads serving as committee members. This structure establishes a management framework with clearly defined responsibilities and eficient coordination. To ensure production safety, the Company has appointed full-time safety manager to undergo "Safety Education and Training" organized by government regulatory authorities. The managers shall obtain the necessary qualifications through assessment.

Structure of Zhongshan Longsys' Safety Production Committee

Director of the Safety Production Committee (held by the main personnel in charge)

Responsible for the leadership, organizational structure and resource allocation for the Company's safety production; reviewing and approving the Company's safety production policy, objectives, management plans, regulations, technical measures, and annual safety production plans, and overseeing their implementation; fulfilling relevant statutory duties; fulfilling the safety production responsibilities as mandated by laws and regulations; coordinating, guiding, and supervising safety production work to implement comprehensive safety management across the Company.

Executive Director of the Safety Production Committee (held by the Company's Safety Manager)

Establish and improve the safety production responsibility system and promptly report safety work to higher authorities; organize safety production promotion, education, and special inspection activities; regularly convene Safety Committee meetings and safety routine meetings, conduct dynamic research and analysis of the Company's safety production situation to gain a comprehensive understanding of safety production status; and urge relevant departments to handle occupational safety and health managemen and labor protection matters.

Deputy Director of the Safety Production Committee (held by the Company's Safety Supervisor)

The safety supervisor leverages professional expertise and supervisory functions to collaborate with the Director and Executive Director of the Safety Production Committee in fulfilling occupational safety responsibilities, helping achieving the Company's safety production responsibility and objectives.

Members of the Safety Production Committee (held by department heads)

Responsible for implementing safety management policies formulated by the Company's Safety Committee; implementing fire safety management, behavioral management, and occupational health management for personnel, equipment, and operational sites of the department; handling internal control accidents, cooperating with accident investigation, reason analysis, statistics, and reporting, formulating preventive measures and addressing relevant personnel responsible.

Meanwhile, the Company requires all departments to assign dedicated personnel to coordinate safety production management. To strengthen daily oversight, the Safety Team under the Administration Department organizes monthly comprehensive safety inspections across departments. Additionally, each department conducts weekly selfinspections of its designated areas, focusing on ofice environment safety, electrical safety, and other critical aspects. Any issues identified shall be rectified immediately or reported promptly for resolution.

Zhongshan Longsys Holds a Safety Production Committee Meeting

In February 2026, Zhongshan Longsys held its Q1 Safety Production Committee Meeting to comprehensively outline the 2026 safety production work plan. Chaired by the deputy director of the Safety Production Committee, the meeting was attended by all committee members and key personnel. The objective was to establish a robust safety management framework, strengthen the accountability of primary safety responsibilities, and lay the foundation for achieving the annual zero-accident target.

Security Risk Management

To address potential risks in specific work environments, we conduct hazard identification and risk assessment, and have established the . Through a tiered and regular safety inspection mechanism, we systematically identify occupational health and safety risks and opportunities, and establish annual objectives and action plans to continuously enhance our accident risk prevention and control capabilities. Additionally, we compile critical hazards into a list, and ensure implementation of corresponding preventive measures.

We enforce stringent lifecycle controls over hazardous chemicals and adopt standardized management for personal protective equipment (PPE), requiring employees to wear and use protective gear in a compliant manner to ensure comprehensive and effective safety protection during operations.

To strengthen fire safety management, all production sites are equipped with standardized fire protection facilities in accordance with relevant standards, and have comprehensive emergency plans in place. Regular fire drills are organized to ensure production safety.

Enhancing Safety Awareness

Longsys is committed to comprehensively building a safety culture, regarding it as a key driver in improving employees' safety awareness. Through diversified initiatives such as regular safety training sessions, targeted awareness campaigns, and practice-oriented emergency response drills the Company continually reinforces a safety-first mindset and accountability across all levels. Meanwhile, we have improved our health and safety training and evaluation system to ensure that employees in all positions are proficient in necessary safety knowledge and protective skills, comprehensively fortifying the Company's safety defense line.

Case Mestor Conducts Occupational Health and Safety Training

Mestor regularly conducts occupational health and safety training, mainly covering occupational health and safety regulations and management frameworks, identification of occupational hazards, use of personal protective equipment (PPE), and emergency response procedures for work-related injuries and occupational diseases. The training covers all employees, with a focus on high-risk positions in departments such as the Facility Department and the Production Department. New employees must complete no less than 8 hours of training. Mestor maintains a zero occupational disease incidence rate and a 100% correct usage rate of PPE, demonstrating the outstanding efectiveness of its training programs.

2025 Safety Production Month at Longsys

In June 2025, which is the 24th National Safety Production Month, Zhongshan Longsys, Longforce Suzhou, and Mestor launched a series of initiatives under the theme "safety for all, emergency response by all". Through multi-dimensional promotion campaigns, practical drills, innovative activities, thematic training, and long-term inspections, the Company comprehensively enhanced employees' safety awareness and emergency response capabilities. Initiatives included online quizzes, instant hazard reporting via mobile apps, and self-initiated safety audits, achieving a 100% hazard rectification rate. With our comprehensive inspection teams and new safety regulations, we continuously strengthen our safety foundation and promote regular safety governance to ensure high-quality development.

Fire Emergency Evacuation Exercise Activity at Longforce Suzhou

Longforce Suzhou conducted a fire emergency evacuation drill under the theme "Fire Safety for All, Life First – Safe Use of Fire and Electricity". The exercise simulated an electrical fire in the ofice area, covering early warning, evacuation, firefighting, and first aid. Departments responded swiftly, evacuating in an orderly manner to designated safe zones. This was followed by hands-on fire extinguisher training to enhance employees' emergency response capabilities.

Employee Health

Longsys prioritizes the physical and mental wellbeing of its employees by offering annual medical checkups, professional psychological assessments, and a variety of wellness initiatives. These efforts are part of a comprehensive employee care system aimed at creating a healthy and harmonious work-life environment.

Occupational Disease Prevention

Longsys places high importance on occupational health management and strictly adheres to the Law ofthe Peo le 's Re ublic of China on Prevention and Control of Occupational Diseases. We have also established the Occu ational Health Surveillance and Archival Records Management System, the Occupational Hazard Monitoring and Evaluation Management System and the Occupational Disease to improve our occupational health management systems. Through regular annual medica examinations, special health checks, and health consultation services, we comprehensively monitor employees' health status, with particular attention given to frontline workers. We also organize training programs for occupational hazard identification and emergency response, achieving a 0% incidence rate of occupational diseases and 100% compliance in the correct use of personal protective equipment (PPE). By continuously optimizing the working environment, upgrading equipment, and emphasizing health education, we eliminate occupational health risks at the source to genuinely safeguard employees' physical and mental well-being.

Focusing on Mental Health

To genuinely care for employees' mental health and help alleviate their psychological stress and concerns, Longsys has established an on-site psychological counseling center, managed by the Administration Department. Professional counselors are engaged to provide regular in-person services. This initiative reflects the Company's deep commitment to employee mental health and its eforts to build a strong psychological support system.

Health and Wellness Activities

Longsys has always emphasized enriching employees' cultural and recreational lives, striving to build diversified platforms to encourage selfexpression and interpersonal communication. The Company has established clubs for swimming, hiking, badminton, yoga, tennis, soccer, table tennis, basketball, arts and entertainment, and long-distance running. These groups regularly organize various competitions and recreational activities that both energize employee life and enhance team cohesion and collaboration. Zhongshan Longsys is equipped with spacious, comprehensive activity facilities, including basketball courts, football fields, badminton courts, table tennis areas, yoga rooms, and fitness centers to support employees' healthy development.

Case Football Friendly Match between Longsys and Amlogic

On April 19, 2025, Longsys and Amlogic held a friendly football match at Dasha River Football Field in Shenzhen. During the game, players from both teams gave their all and displayed courageous determination. Ultimately, the Amlogic football team secured victory with a score of 6:5, concluding the match on a high note.

Case Hiking Activities at Longforce Suzhou

To promote a healthy lifestyle and enhance employees' physical well-being, Longforce Suzhou organized a series of hiking activities.

Longforce Suzhou held an employee fitness hiking event at Huqiu Wetland Park, featuring a fun minigame called "Color Restoration" to enhance employee engagement with more challenges.

In Spring 2025, the Longforce Suzhou Trade Union organized the spring outing, encouraging employees to explore Shaoxing's natural and cultural landmarks through hiking, thereby strengthening team cohesion and a sense of belonging.

In Autumn 2025, Longforce Suzhou organized a hikingthemed team-building activity in Shihu Lake Scenic Resort, setting up check-in points at three landmarks with fun activities to enhance team cohesion and safeguard employees' physical and mental health.

Case Longsys Participates in Relay Races

Employee Run Race at Longforce Suzhou

On May 11, 2025, to commemorate the centenary of the establishment of the All-China Federation of Trade Unions, the Trade Union Committee of Jinji Lake Sub-district organized a run race for the health of employees. The Trade Union of Longforce Suzhou actively responded to the campaign, organizing a team of 10 members to participate. With all members successfully crossing the finish line, employees at Longforce Suzhou showcased their positive spirit and the pursuit of progress.

26km Relay Race at Dishui Lake, Linggang New Area, Shanghai

On April 24, 2025, on the occasion of the 26th anniversary of Longsys establishment, the R&D Platform Department and Equipment Technology Department of the Flash Product R&D Center carried out a 26-kilometer relay race at Dishui Lake. The event concluded successfully.

Longsys Basketball Team Secures Fifth Place in Employee Basketball Match at Cuiheng New District

The 2025 men's basketball match for employees at enterprises, government agencies and public institutions organized by Cuiheng New District (Nanlang Sub-district) kicked off at the Nanlang Fitness Square in Zhongshan, attracting 28 elite teams. After intense competition in both the group stage and knockout rounds, Longsys basketball team won fifth place with their outstanding teamwork and tenacious fighting spirit.

Longsys Successfully Hosts Internal Badminton Match and Wins Awards in Industry Competitions at the Provincial Level

Longforce Suzhou Badminton Match

In August 2025, Longforce Suzhou held its first badminton match featuring team competition and a men's challenge match, catering to both team collaboration and individual competition needs. This activity enhanced employees' physical fitness, promoted cross departmental collaboration, and strengthened team cohesion.

Longsys Wins "Outstanding Organization Award" at the 1st Guangdong Integrated Circuit Industry Badminton Match

To welcome the 15th National Games, the first Guangdong integrated circuit industry badminton match in 2025, themed "Innovative Guangdong, Dynamic Badminton" was successfully held in Nansha, Guangzhou. The event attracted 16 elite teams from the integrated circuit industry across the province. Longsys badminton team was awarded the "Outstanding Organization Award" for its excellent team coordination and sportsmanship

Longsys Table Tennis Team Secures Runner-up in Employee Table Tennis Match at Cuiheng New Area

On June 21, 2025, the 2025 table tennis match for employees at enterprises, government agencies and public institutions organized by Cuiheng New District concluded at the gymnasium of Nanlang Street, attracting 18 teams and nearly 100 employees within the district. The Longsys Zhongshan table tennis team made its debut and won the second place. With seamless coordination and unwavering effort, our team members demonstrated fearless determination and an unyielding spirit of perseverance.

05

Collaborating to Create, Coexisting to Thrive

Longsys is committed to building a collaborative industrial ecosystem by deeply integrating suppliers, industry partners, and communities into its sustainable development process. Through robust supplier evaluation mechanisms, control over hazardous substance and conflict minerals, active participation in the co-development of industry technical standards, and ongoing community welfare initiatives, the Company continuously strengthens collaboration with all value chain stakeholders, driving overall progress and value enhancement across the entire industrial chain.

Key Performance Highlights

Completed annual CDTSBC audits for approximately 25 key suppliers in 2025

72% of suppliers have obtained ISO 9001 Quality Management System Certification

45% of suppliers have obtained ISO 14001 Environmental Management System Certification

Some key suppliers passed the Responsible Business Alliance (RBA) Code of Conduct Certification

In 2025, suppliers of Longforce Suzhou 100% responded to surveys on hazardous substances and conflict minerals

In 2025, Longsys received major awards from partners including Nuoweida, iSoftStone Computer, CEC Great Wall, SUNMI, and Runione Information

SDGs Addressed in this Chapter

POVERTY ND HUNGER 4 CUALITY EDUCATIO

ESG Material Topics Addressed in this Chapter

Social contribution, Responsible supply chains

Sustainable Supply Chain

Longsys systematically integrates sustainability into all stages of its supply chain. We have developed a comprehensive system that covers supplier entry evaluation, end-to-end hazardous substance control, and conflict mineral traceability management. We are committed to ensuring that the entire process from raw material procurement to product delivery complies with environmental protection requirements and social responsibility standards, actively fulfilling our corporate citizenship responsibilities.

Governance

Longsys has systematically integrated supplier management, hazardous substance control, and conflict mineral management into its operations. By establishing relevant policies and building a complete sustainable supply chain management framework, we comprehensively advance supply chain sustainability

Based on policies such as the Re ulations on the Develo ment and Qualification of Material Su liers, the Re ulations on the Mana ement of , and the , we have established a full life-cycle supplier management system, covering supplier entry review, performance assessment, and dynamic exit, which systematically drives the fulfillment of supply chain responsibilities.

Longsys Supplier Life Cycle Management System

Strategy

Longsys has integrated the management of environmental, social, and governance (ESG) responsibilities in relation to its supply chain into its overall corporate strategy, and deeply embedded supplier ESG performance evaluation into the entire supplier management process. We continuously monitor suppliers' corporate social responsibility (CSR) performance, and conduct CDTSBC audits for suppliers on a regular basis.

Management of Hazardous Substance

Driven by green manufacturing and sustainable development principles, the Company positions hazardous substance management as a core component of its sustainable practices. We have formulated a hazardous substance-free management policy centered on the principles of "compliance with laws and regulations, commitment to green manufacturing, implementation of continuous improvement, and achievement of customer satisfaction", systematically advancing hazardous substance control across operations.

We strictly comply with international standards, including the EU Directive 2015/863 (RoHS 2.0) and REACH regulations, establishing a full-process hazardous substance control mechanism covering product design, raw material procurement, and production. By establishing and enforcing documents such as the Standard for the Management of Environment-Related Substances, Hazardous Substance-Free Quality Manual, the Supplier Hazardous Substance-Free Management Regulations, the Hazardous Substance Management Procedures, and the Hazardous Substance Control and Investiga-, we regularly revise restricted substance list and control requirements in alignment with evolving domestic and international regulations, as well as customer HSF (Hazardous Substance-Free) procurement requirements. These requirements apply to Longsys products, as well as direct materials, indirect materials, and packaging materials, ensuring full lifecycle compliance with environmental regulations. Longforce Suzhou, Zhongshan Longsys, and Mestor have all successfully obtained IECQ QC 080000 Hazardous Substance Process Management Certification.

Additionally, Longsys systematically communicates hazardous substance compliance requirements clearly to both internal employees and supply chain partners. Suppliers are explicitly required to confirm annually their Material Safety Data Sheets and submit the latest version to the Company for review. These documents serve as a prerequisite for continued collaboration, ensuring that products comply with RoHS, REACH, and other regulatory requirements throughout their life cycle. The Environmental Protection Department regularly shares the latest standards and management requirements with qualified suppliers, supporting continuous improvement in their hazardous substance control capabilities and jointly advancing green and sustainable development across the industrial chain.

Longforce Suzhou systematically implements hazardous substance management by conducting annual reviews with risk assessment tools to identify high-risk processes and materials and implement specialized control measures. Suppliers are required to provide HSF compliance certificates, annual testing reports, and sign hazardous substance-free declaration, with materials screened through XRF (X-ray Fluorescence) analysis upon receipt. All management records are retained for 10 years as per regulations. Products are sent for testing annually based on their categories, and if hazardous substance limits are exceeded, the Company will immediately isolate the products and trace back for resolution. In the case of product testing anomalies, customer negotiation is promptly initiated, and additional testing or product recalls are conducted if necessary.

In 2025, Mestor systematically strengthened hazardous substance management capabilities across all employees through specialized training covering topics such as regulations, identification, storage, waste management, leakage emergency response, and supplier control. In March 2025, Mestor conducted specialized training on the IECQ QC 080000 system, with all participants passing the assessment. This training session has been integrated into mandatory onboarding programs for new employees, with biannual practical training and twice-annual leakage emergency drills for key personnel. Through continuous training, Mestor achieved 100% compliance in hazardous substance identification and handling, maintaining a zero-incident safety record for leakage accidents.

Conflict Mineral Management

Longsys strictly adheres to international standards such as the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and the Responsible Minerals Initiative (RMI). We exercise utmost caution on minerals sourced from the Democratic Republic of Congo (DRC) and surrounding high-risk regions. Longsys firmly rejects any mineral transactions that infringe on human rights or violate international regulations. All suppliers are explicitly required to sign and strictly adhere to the No Conflict Minerals Commitment, ensuring that minerals such as tantalum, tin, tungsten, gold, and cobalt used in their products originate from compliant, responsible supply chains.

Longforce Suzhou has established a systematic management mechanism for conflict minerals based on the Conflict-Free utilizing the Conflict Minerals Reporting Template (CMRT) and Extended Minerals Reporting Template (EMRT) developed by the Responsible Minerals Initiative (RMI) to conduct due diligence on suppliers. The investigation covers all direct materials, packaging materials, and selected highrisk indirect materials. Suppliers are required to achieve 100% completion of assessments and trace the origin of metals in their products, ensuring materials originate from smelters and refiners meeting the Responsible Minerals Assurance Process (RMAP) standard. Suppliers are further required to identify and manage their downstream supply chains to ensure that conflict minerals policies are followed by all. Longforce Suzhou also requires suppliers to update reports promptly in alignment with revisions to the oficial CMRT and EMRT templates, ensuring management efectiveness and timeliness. For suppliers assessed to potentially involve the financing of illicit groups, Longforce Suzhou will cease transactions based on the circumstances.

Risk and Opportunity Management

Longsys has established a systematic agreement framework that specifies the signing of a comprehensive agreement package with suppliers, including the Procurement Agreement, Quality Agreement, Product Change Notification (PCN) Amendment Agreement, Code of Conduct for Business Partners, No Conflict Minerals Commitment, Declaration of Non-use of Restricted Substances, and Business Integrity Agreement These agreements clarify the rights and obligations regarding compliance and social responsibility. Building on this framework, the Company dynamically monitors and standardizes supplier behavior leveraging the legal force of agreements and continuous operational evaluations. Suppliers' CSR performance and adherence to business code of conduct are formally integrated into the Re ulations on the Mana ement of , systematically mitigating potential risks related to compliance, environmental protection, and social responsibility.

Metrics and Targets

Longsys has consistently invested in sustainable supply chain management and achieved tangible progress. As of the end of 2025, the Company has driven 72% of suppliers to obtain ISO 9001 Quality Management System Certification, with nearly half of suppliers securing ISO 14001 Environmental Management System Certification. Additionally, some key suppliers had passed the Responsible Business Alliance (RBA) Code of Conduct Certification. These achievements underscore the Company's systematic eforts to enhance environmental and social responsibility performance across its supply chain.

Key Performance Highlights

Number of key suppliers that completed annual CDTSBC audits in 2025

25

72%

of suppliers have obtained ISO 9001 Quality Management System Certification

45%

of suppliers have obtained ISO 14001 Environmental Management System Certification

Some key suppliers passed the Responsible Business Alliance (RBA) Code of Conduct Certification

In 2025, suppliers of Longforce Suzhou

100% responded to surveys on hazardous substances and conflict minerals

Collaborating for Industry Development

Longsys actively explores and implements innovative models ranging from technology collaboration to ecosystem co-construction by continuously deepening cooperation with key domestic and international customers and industry partners. We are committed to integrating end-to-end capabilities in R&D, manufacturing, and services, delivering flexible, customized business solutions to empower critical fields such as mobile communications, automotive electronics, and industrial connectivity. By partnering with stakeholders, Longsys addresses challenges posed by technological transformation and drives value enhancement and collaborative development of the storage industry.

In early 2025, Longsys received major annual awards from multiple partners, including Nuoweida, iSoftStone Computer, CEC Great Wall, SUNMI, and Runione Information, in recognition of its outstanding product quality and service excellence.

▪ Annual Strategic Cooperation Supplier - Nuoweida Technology Co., Ltd.

▪ Best Collaboration Award - iSoftStone Computer Co., Ltd.

▪ Outstanding Partner Award - China Electronics Great Wall Technology Co., Ltd.

▪ Excellent Partner of the Year - SUNMI

▪ Strategic Cooperation Award - Shanghai Runione Information Technology Co., Ltd.

Longsys will continue to remain true to its founding mission, further strengthen mutually beneficial partnerships with stakeholders, and jointly drive the prosperity and progress of the industry.

Case Longsys and Sandisk Deepen UFS Storage Cooperation

In June 2025, Longsys signed a Memorandum of Understanding (MoU) with SanDisk to jointly develop high-quality UFS solutions. This partnership integrates SanDisk's advanced 218-layer 3D NAND flash technology with Longsys expertise in storage controller chips, firmware, and packaging and testing manufacturing. Leveraging Longsys TCM business model, the collaboration will target the mobile and IoT markets, delivering customized, high-performance UFS products and onestop services to customers. The cooperation aims to enhance the eficiency of the storage supply chain and strengthen market competitiveness.

Longsys Attends the Annual Storage Partner Conference

In March 2025, following its participation in the Shenzhen exhibition, Longsys held its annual Storage Partner Conference at the Zhongshan Longsys Storage Industrial Park under the theme "Storage Ecosystem, Collaborative Innovation". Centered on cutting-edge AI advancements, the conference provided a platform for industry partners to explore innovative pathways and collaborative strategies. Through an immersive experience in cultural and creative storage space and a symbolic tree-planting ceremony, the event strengthened ecological connections, showcasing Longsys' determination and vitality in building a future for storage technology with partners and embarking on a new journey.

Case Longsys Presents High Reliability Storage Solutions at the Embedded World in Germany

At the 2025 Embedded World Exhibition & Conference in Nuremberg, Germany, Longsys highlighted its cutting-edge industrial and automotive storage solutions under the theme "High-Reliability Storage, Empowering the Industrial World". The showcased products included next-generation industrial-grade SSDs, DIMMs, and a full series of automotive-grade Flash and DRAM products, all engineered to meet stringent requirements for wide temperature ranges, sulfur resistance, and high durability in harsh environments. Leveraging its PTM end-to-end customization services, Longsys delivered highly flexible storage solutions tailored for industrial automation and intelligent vehicles. This demonstration underscored the Company's technical capabilities in driving intelligent transformation across global manufacturing and automotive industries.

Longsys Joins Hands with Solidigm to Explore New Opportunities for QLC Embedded Storage Applications

On October 31, 2025, Longsys and Solidigm jointly hosted a technical seminar in Suzhou on QLC storage solutions, focusing on the demand for storage capacity expansion driven by AI and high-definition content. The event delved into the technical breakthroughs and market prospects of QLC in embedded applications as a higher-density, cost-efective solution. Longsys showcased QLC products, including eMMC solutions based on in-house developed controllers and algorithms, complementing Solidigm's technological strengths. The collaboration aims to deliver end-to-end optimization from flash to packaging and testing for intelligent terminal customers through close cooperation and ecosystem co-construction. The partnership seeks to drive large-scale adoption of QLC technology and industry innovation.

Longsys Hosts Brazil Semiconductor High-Level Talent Delegation to Strengthen China-Brazil Technological Exchange

On October 16, 2025, the CI Inovador Semiconductor Talent Delegation from Brazil visited Zhongshan Longsys Storage Industrial Park. All delegation members underwent a rigorous selection process and possessed international perspectives. The delegation visited the Company's manufacturing center and Lexar Quality Laboratory, gaining indepth insights into its advanced manufacturing processes and quality management systems. At the subsequent roundtable discussion, both parties exchanged views on semiconductor industry trends, challenges, and market prospects. This visit established a platform for international industrial talent exchange, demonstrating the Company's commitment to supporting talent development in the global semiconductor industry, promoting technological exchange, and advancing industry ecosystem growth.

Longsys Showcases AI-Era Storage Case Innovations Solutions at China Mobile Global Partners Conference

In October 2025, Longsys presented its full-matrix Enterprise-Grade storage products and solutions tailored for AI, cloud computing, and data center sectors under the theme "Carbon-Silicon Symbiosis and Co-creation in the AI+ Era" at the 13th China Mobile Global Partner Conference. Its eSSD and RDIMM product portfolio has successfully entered the China Mobile supply chain and achieved large-scale delivery. Key highlights included next-generation high-performance, high-capacity products such as SOCAMM2, CXL 2.0 Memory Expansion Module, and MRDIMM. Leveraging its PTM Storage Foundry capabilities, Longsys ofers deep customization services. The Company is committed to driving industry upgrades in the AI+ era by advancing technological innovation and optimizing business models to build eficient, flexible storage infrastructure for partners.

Building a Better Community

Longsys closely integrates corporate social responsibility with business development, actively participating in charitable and public welfare activities. Through supporting community development and community greening initiatives, the Company efectively fulfills its corporate social responsibility, demonstrating its corporate mission and social value.In 2025, Zilia donated nearly RMB 20,000 to APAE (Associação de Pais e Amigos dos Excepcionais), supporting initiatives such as Children's Day, Christmas, and traditional Brazilian events, thereby demonstrating Zilia's commitment to community support.

Longsys Donates Computers to Support the Digitalization of Rural Education

In 2025, Longsys donated a batch of computers to the Guangdong Provincial Education Foundation, including 41 sets specifically allocated to the "Green Charity Computer Classroom" at Mashi Middle School in Shixing County, Shaoguan City. This initiative aims to empower rural education through technology advancement, enhance IT infrastructure of the school, expand digital learning approaches for rural students, and support the digital transformation of basic education.

Case Zhongshan Longsys' Social Responsibility Initiatives

Zhongshan Longsys Participates in Chongyang Festival Charity Visit

On October 27, the Cuiheng New District Chamber of Commerce organized member enterprises to visit to the Nanlang Street Elderly Care Center, bringing warmth and care to senior residents. As a key member enterprise of the Chamber, Zhongshan Longsys actively joined the event alongside other business representatives, including the rotating vice president Lin Jianfeng. Zhongshan Longsys delivered essential gifts such as milk, oatmeal, and hygiene products to the elderly. During the visit, representatives from Zhongshan Longsys listened attentively to the seniors' stories, showing genuine concern for their

Zhongshan Longsy's participation in the Chongyang Festival visit to the Elderly Care Center

health and daily lives. Longsys fulfills its corporate social responsibility to respect the elderly with practical actions.

Zhongshan Longsys Supports the 2025 Charity Million-Person Walk

In the 2025 Charity Million-Person Walk event in Cuiheng New District, Zhongshan Longsys, a core enterprise deeply rooted in the region, responded proactively by donating RMB 50,000. The contribution will support charitable initiatives including poverty alleviation, emergency assistance, and educational support, clearly demonstrating Zhongshan Longsys' strong sense of social responsibility and dedication to community welfare.

Zhongshan Longsys' donation of RMB 50,000 at the 2025 Charity Million-Person Walk event

Case Planting Activity by Longforce Suzhou

In 2025, Longforce Suzhou organized employee representatives from all departments for a planting activity within the industrial park. Participants independently planned, selected, and personally planted diverse green plants, creating 15 distinctive green zones. This initiative not only strengthened employees' awareness of environmental responsibility but also promoted the green ofice concept by increasing greenery coverage, contributing to low-carbon sustainable development.

Appendix

ESG Content Index

ESG Policies and Regulations List

ESG Data Indicators Performance Table3, 4

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