2025

Sustainability Report

BOTH Engineering Technology Co., Ltd.

01 About This Report 03 2025 Key Sustainability Highlights 03 2025 by the Numbers 05 2025 Key Awards and Recognitions 07 Company Profile 15 Sustainable Development Management

Environmental Chapter

29 Minimize Environmental Footprint 31 Environmental Management System 35 Addressing Climate Change 43 Green Construction and Sustainable Delivery 51 Resource Utilization and Circular Economy 55 Ecosystem and Biodiversity Protection

Social Chapter

59 Creating Value for Clients 59 Excellent Delivery 67 Customer Service 68 Data Security and Privacy Protection

72 Driving Industry Leadership Through Innovation 72 Technology R&D and Innovation 78 Intellectual Property Protection 79 Building a Responsible Supply Chain 80 Supplier Management 81 Sustainable Supply Chain Development 82 Local Procurement 83 Fair Treatment of Small and Medium-sized Enterprises

83 Employee Development and Well-being 83 Diversity, Equity and Inclusion 90 Occupational Health and Safety 97 Employee Training and Development 101 Promoting a Sustainable Future 101 Support Community Development 101 Rural Revitalization and Public Welfare Activities

Governance Chapter

103 Establishing a Robust, Transparent, and Trustworthy Governance System

CONTENT

105 Corporate Governance 108 Investor Relations Management 110 Compliance and Risk Management 114 Anti-Corruption and Business Integrity

116 ESG Performance Table 129 Appendix-Comparison Index Table 138 Appendix- List of Full Names and Abbreviations of Subsidiaries

About This Report

This is the second Sustainability Report issued by BOTH Engineering Technology Co., Ltd. (hereinafter referred to as “BOTH”, “the Company” or “We”). It discloses to investors and other stakeholders the philosophy we uphold on sustainability topics, the management approaches we have established, the initiatives we have implemented, and the results we have achieved during our operations.

Reporting Scope

Organizational Scope

This report covers BOTH Engineering Technology Co., Ltd. and its subsidiaries. Unless otherwise stated, the reporting scope is consistent with the consolidated financial statements of BOTH (stock code: 601133.SH) for the same period.

Reporting Period

This is an annual report covering the period from 1 January 2025 to 31 December 2025. To enhance comparability and completeness, certain text and data may extend beyond this period where relevant, with clear explanations provided.

Basis of Preparation

This report has been prepared in accordance with the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies – Sustainability Report (Trial) and Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE – Compilation of Sustainable Development Reports issued by the Shanghai Stock Exchange (SSE).

In addition, the report references the following sustainability disclosure standards:

■ United Nations Sustainable Development Goals (SDGs)

■ Global Reporting Initiative Sustainability Reporting Standards (GRI Standards)

■ The Sustainability Disclosure Standards for Business Enterprises: Basic Standard (Trial) jointly issued by the Ministry of Finance of the People’s Republic of China

■ China Enterprise Sustainability Development Report Guidelines (CASS-ESG 6.0) – Construction & Installation Industry issued by the China Enterprise Reform and Development Society

Data Notes

All data and case studies in this report are derived from the Company’s oficial operational records. Financial data are presented in RMB. Where any financial figures differ from those in the Company’s annual report, the annua report shall prevail.

Access to the Report

This report is published in both Chinese and English electronic versions and is available for viewing and download on the Company’s oficial website (https://www.jsboth.com/) and the Shanghai Stock Exchange website (www.sse.com. cn).

If you have any questions or suggestions regarding BOTH’s ESG work or this report, we welcome your feedback. Address: 20-22/F, Shanghai Centre City Kai International, No. 800 YinXiu Road, Wuxi, Jiangsu Province, China Email: bothsecurities@jsboth.com

Reporting Principles

Materiality

We have identified the material topics of greatest concern to stakeholders and directly related to our operations as the focus of this report. While reporting on these material topics, we also take into account the characteristics of our industry and business. The process and outcomes of the materiality analysis are detailed in the “Materiality Analysis” section of this report.

Accuracy

We strive to ensure the accuracy of all information. For quantitative data, we have clearly stated the data scope, calculation methodology, and underlying assumptions to prevent any misleading impact on users. Quantitative data and accompanying notes are presented in the “ESG Performance Table” section. The Board of Directors assumes responsibility for the content of this report and confirms that it contains no false statements, misleading representations, or material omissions.

Balance

This report presents objective and factual information, disclosing both positive and negative aspects in an unbiase manner. No negative events that should have been disclosed but were not were found during the reporting period.

Clarity

This report is published in both simplified Chinese and English versions. In case of any inconsistency, the simplified Chinese version shall prevail. Tables, diagrams, and glossaries of professional terms are included to assist stakeholders in understanding the content. A table of contents and ESG standards index are provided for eficient navigation.

Quantifiability

Key quantitative disclosure items are reported in the “ESG Performance Table” section.

Comparability

This report maintains consistency in the statistical and disclosure methods for the same quantitative disclosure item across diferent reporting periods. If there are changes in the data collection, measurement, and calculation methods, the relevant data will be retrospectively adjusted, and the reasons for the adjustments will be explained in the report notes to enable stakeholders to conduct meaningful analysis and assess the development trend of the company’s ESG performance.

Completeness

The reporting boundary is aligned with the scope of the Company’s consolidated financial statements, ensuring the completeness of disclosed information.

Timeliness

This is an annual report covering 1 January 2025 to 31 December 2025. Unless otherwise stated, all data refer to this period.

Verifiability

All cases and data are sourced from the Company’s official operational records or financial reports, ensuring traceability and verifiability.

2025 Key Sustainability Highlights

2025 by the Numbers

Employee turnover rate

100%

100%

Total Charitable Donation

Occupational health and safety training coverage

248,483

Total hours of occupational health and safety training

100%

Employee coverage rate of personal accident insurance or group accident insurance

100% Work injury insurance coverage

100%

The anti-bribery and anti-corruption training coverage rate for suppliers

100%

All employees' compliance with ethical business conduct guidelines and related business ethics signing rate

100%

Senior management staf coverage of anti-bribery and anti-corruption training

2025 Key Awards and Recognitions

Corporate Awards

Issuing Authority

2024 “Outstanding Outbound Construction Enterprise”

2024 “Top 100 Installation Enterprises”

2024 Excellent Construction Enterprise

2025 AAA Credit Enterprise

2024 Preferred Employer

2025 Annual Corporate Credit Evaluation AAA-Level Credit Enterprise

Wuxi Installation Industry Association

Jiangsu Installation Industry Association

Wuxi Binhu District Housing and Urban-Rural Development Bureau

Zhaopin Limited

Jiangsu Xincheng Credit Rating Co., Ltd. (Designated Credit Rating Institution by the Nanjing Branch of the People’s Bank of China)

China Association of Construction Enterprise Management

Photo

2024安装百强企业

企业信用计价AA型C用企业

ESG Ratings & Honors

Rating/Issuing Agency

Photo

Wind Information Co., Ltd.

Wind ESC拍减股份

Sino-Securities Index Information Service (Shanghai) Co.,Ltd

华证ESG柏诚股份

Bronze Medal

2025 Wuxi Listed Company ESG Charity Growth Case

EcoVadis

Wuxi Charity Federation (Wuxi Charity General Association), Wuxi Listed Companies Association, etc.

Company Profile

About BOTH

BOTH Engineering Technology Co., Ltd. (stock code: 601133.SH) is a high-value provider of cleanroom system integration solutions serving global high-tech industries. Over more than 30 years of development, we have accumulated significant technological advantages in cross-industry applications, ultra-large cleanroom areas, and ultra-high cleanliness control, as demonstrated in numerous benchmark projects.

Headquartered in Wuxi, China, the Company holds top-tier qualifications including Class A Design in the Construction Industry, Class 1 General Contracting for Construction, and Class 1 General Contracting for Mechanical & Electrica Installation. We operate six major industrial business units and maintain overseas subsidiaries in Singapore, Malaysia, Vietnam, Thailand, and other regions, supported by our own professional design institute, intelligent manufacturing center, and filtration product production base. With a workforce exceeding 1,200 employees, we deliver full EPFC (Engineering, Procurement, Fabrication, Construction) capabilities covering design, procurement, manufacturing, construction, commissioning, and system validation.

We focus on high-tech industries including semiconductor and pan-semiconductor, new display, electronics & energy technology, as well as life sciences, bio-pharmaceuticals, and food & nutrition. We are committed to providing clients with the most demanding technical requirements with full life cycle services ranging from conceptual design and project implementation to overall delivery. Leveraging our refined management system and strong client reputation, we maintain long-term strategic partnerships with leading global enterprises such as TSMC, Samsung, SMIC, Hua Hong, CXMT, BOE, TCL CSOT, Foxconn, Eli Lilly, Pfizer, AstraZeneca, Boehringer Ingelheim, and Starbucks. To date, we have successfully delivered over 800 mid-to-high-end projects with a cumulative clean production area exceeding 10 million m², and have been honored with multiple national awards including the Luban Award, National Quality Engineering Award, and the Tien-yow Jeme Civil Engineering Prize.

We are committed to driving industry transformation and innovation breakthroughs. Recognized as the “Wux Cleanroom Engineering Technology R&D Centre”, we hold over 100 patents and construction methods. We extensively apply BIM technology, 3D/4D visualization design, modularization, and digital management systems to ensure precision, eficiency, and safety in project delivery.

Industry

Semiconductors & Related

Client List byIndustry (Partial)

New Display

Life Sciences

Food, Pharmaceuticals & Health

Consumer Electronics, Precision Electronics,

and other High-tech Industries such as New Energy

Client List

Samsung, SK Hynix, SMIC, HHGrace, CXMT, YMTC, Silan, Sanan-ST, YASC, etc.

BOE, TCL CSOT, Tianma Microelectronics, SDP, Visionox, etc.

Boehringer Ingelheim, BeOne Medicines, Innovent, Zhifei, Dragon Sail Pharmaceutical, Yangshengtang, Meili Zhongcheng, WuXi Biologics, WuXi AppTec, etc.

Johnson & Johnson, Wyeth, Pfizer, AstraZeneca, Eli Lilly, Abbott, Starbucks, etc.

Foxconn, Peng Shen Technology, SCC, Baic Electronics SK, AT&S, Kangning Environmental, etc.

Corporate Culture

Mission

Treat employees well, achieve customer success, and give back to society.

V_isio

Values

To become a respected enterprise in the fields of microelectronics, food & pharmaceuticals, and life sciences.

Customer orientation, credit orientation, inclusive and diverse, value creation.

Business Layout

As a high-value provider of cleanroom system integration solutions for high-tech industries, BOTH possesses full lifecycle and integrated EPFC (Engineering, Procurement, Fabrication, Construction) capabilities. We deliver professional services including project consultation, design, procurement, manufacturing, project management and execution, system commissioning and validation, secondary piping & wiring, and operation & maintenance for both industrial and biological cleanrooms.

One-Stop Service System

System requirements 01 functional analysis

Project planning 02 and design

Procurement 03 management

Construction 04 and fabrication

Project 05a management nd implementation

System 06 debugging and verification

Secondary 07 hook-up (piping and utilities)

Trial run of production equip-08 ment

Completion 09 and delivery

System operation 10 and maintenance

Concept design CD

F| Fabrication

Modular cleanroom

Basic/preliminary design BD/PD

Supplier management and compliance review

Electromechanical module

Detailed design DD

Construction design SD

Procurement of critical equipment and engineering materials

Modular data center

Purification products

International logistics and customs clearance planning

Green/responsible supply chain management

C| System Integration and Debugging Testing

Cleanroom

MEP (Mechanical and Electrical Engineering) systems (HVAC, electrical, water supply and drainage, fire protection)

Process systems (gas, chemicals, water systems)

Civil engineering, structural and maintenance construction

Hook-up

Debugging planning and system debugging

Clean environment performance testing

Performance verification of key process systems

Support for IQ/OQ/PQ validation of pharmaceutical facilities

As-built documentation

Our business spans engineering services, modular solutions, supporting products, and filtration technologies. We have deeply positioned ourselves in multiple core sectors: semiconductors & related, new display, life sciences, food & pharmaceutical health, and electronics & new energy, forming a complete industrial chain service ecosystem. Geographically, we have established a global network covering China, Southeast Asia, and the Americas. Through unified implementation standards, modular manufacturing systems, and localized execution teams, we ensure stable delivery of large-scale cross-regional projects.

2 major manufacturing bases (Wuxi, China)

major industrial engineering BUs (Semiconductor, Process and hook-up, Electronics & Energy7 Technology, Food & Pharma, Data Center, Southwest, South China & Overseas)

5 overseas localized business centers (Thailand, Malaysia, Vietnam, Singapore, USA)

marketing and technical support networks (covering China’s core city clusters and Southeast15+ Asia’s core cities)

Global Layout

Qualifications and Industry Engagement

Sustainable Development Management

Sustainability Strategy

We at BOTH regard sustainability as the core driver of long-term value creation. Rooted in our founding philosophy of “Establishing Business for Good”, we have deeply integrated Environmental, Social and Governance (ESG) principles into every aspect of corporate governance and business operations. Our goal is to address critical social and environmental challenges through commercial practices. Based on a profound insights of industry characteristics, stakeholder expectations, and global sustainability trends, the Company has formally established the “VALUE” Sustainability Strategy, dedicated to creating sustainable value for our clients, employees, partners, communities, and the environment.

The strategy constructs an action system covering five core dimensions: Based on Vital Safety (V) and Evolving Governance (E), ensuring robust and compliant operations; using Advancing Decarbonization (A) and Leading Quality (L) as the core pathways, enhancing green competitiveness through full-lifecycle management and technological innovation; regarding Unified Symbiosis (U) as the bond, deepening collaborative development with employees, the supply chain, and communities. Through the “VALUE” management strategy, BOTH is committed to delivering on our promises with high value services in partnership with stakeholders and leading sustainable transformation in the industry

During its development, BOTH supports 17 United Nations Sustainable Development Goals (SDGs), deeply embedding material topics including climate action, health and well-being, and decent work into our sustainability strategy

Management Modules and SDG Contributions	Material Topics	Management Actions	2025 Performance Highlights
Vital Safety3 GOOD HEALTH AND WELL-BEING8 DECENT WORK AND ECONOMIC GROWTH	Occupational Health & Safety	Since launching the Build Fence on Cliff , a safety special initiative in 2021 and continuously implementing it as a long-term strategy, it has become the core mechanism for the Company's safety production and occupational health management.Established a governance structure with the Safety Management Committee as its core, routinely identify and assess risks, conduct regular third-party audits to ensure a closed loop for hazard identification and rectificationManagement regularly leads inspections, and dedicated safety officers oversee designated areas, focusing on high-risk operations such as hoisting, working at heights, and confined spaces.Strictly enforce subcontractor access and safety agreements, requiring subcontractors to contribute a proportionate amount to safety costs and purchase accident insurance for their personnel, provide safety technical guidance, and ensure uniform safety standardsCovering the entire process of construction and operation, the system continuously improves the risk identification and emergency response capabilities of all employees through regular training, case studies, and emergency drills	Developed and implemented a “Risk Battle Map System” to enable dynamic monitoring, advance warning, and visualized process control of safety risks throughout the entire project lifecycle.In 2025, the Company had91 full-time safety personnel, accounting for7.5%of the total workforce, strengthening the organizational foundation for safety management.In 2025, the Company recorded a total of945,971hours of workplace safety training, with1,824 sessions conducted on occupational health and safety. The coverage rate for workplace safety training, work-related injury insurance, and employee personal accident or group accident insurance all reached100%.
Advancing Decarbonization[6 CLEAN WATER AND SANITATION 13 CLIMATE ACTION	Innovation DrivenAddressing Climate ChangeEnergy UtilizationCircular EconomyEnvironmental Management SystemPollutant Emissions and Waste ManagementWater Resource UtilizationGreen ConstructionEcosystem and Biodiversity Protection	Developed modular solutions for overseas markets, proactively aligning with international environmental standards to establish a low-carbon product system with green management.Integrated modularization with BIM technology, adopted high-energy-efficiency equipment and smart metering systems, shorten project timelines, reduce on-site pollution, and deliver intelligent control solutions that lower clients' operational carbon footprint.Established an internal allocation mechanism for waste materials, prioritizing the reuse of surplus resources, while conducting regular resource-efficiency audits to achieve closed-loop management.	Developed our proprietary software ecosystem; in 2025 we participated in formulating 13 industry standards and secured 7 copyrights in the BIM software domain.Deepened the application of BIM technology, effectively reducing energy consumption and emissions during construction. We were awarded the Jiangsu Province BIM Technology Application Second Prize and Third Prize, continuing to lead the industry toward low-carbon and high-efficiency transformation.Waste materials and construction surplus were classified and recycled, and then transferred to qualified professional institutions for reuse. A total of more than 680 tonnes of resources, including scrap iron, waste cables, and other resources, were recycled in 2025.

Management Modules and SDG Contributions	Material Topics	Management Actions	2025 Performance Highlights
Leading Quality9 INDUSTRY, INNOVATION AND INFRASTRUCTURE	Customer ServiceQuality ManagementInnovation DrivenData Security and Customer Privacy ProtectionIntellectual Property Protection	Built a customer-centric service culture and established a rigorous business opportunity risk assessment mechanism to ensure stable partnerships.Implemented full lifecycle quality management, applying the “533” dynamic management principle and the “10103” planning mechanism to achieve closed-loop control across all processes.Established a dual-engine strategy of “Modular + BIM”, focusing on the research and development of engineering and functional modules as well as BIM technology.Developed the “BOTH Digital Blueprint” and established a comprehensive data security management system covering assessment, management, technology, operations, and supervision.	Expanded regional service network by establishing regional offices and the Southwest BU, providing agile localized response and support.Strengthened patent mining and systematic management, achieving 16 patent applications and 14 patent grants in 2025, exceeding the annual target.Information security training covered 81% of employees; the signing rate of employee confidentiality commitments and compliance with client confidentiality requirements both reached 100%.

[1]“533” Dynamic Management Principle: A management system that achieves full-process dynamic control of projects through five major management stages, three milestone nodes, and three assessment evaluations. [2]“10103” Plan: An execution system that comprehensively covers the entire project implementation and delivery process, consisting of 10 major management plans, 10 major internal deliverables, and 3 major external deliverables

Sustainable Development Governance

BOTH has established a three-tier ESG governance structure — Decision-Making, Management, and Execution — positioning strengthened ESG governance as a cornerstone of the Company’s sustainable development. This framework enables systematic identification, assessment, and monitoring of environmental impacts, social risks, and opportunities, ensuring ESG initiatives are fully embedded in business processes and deliver tangible results.

BOTH ESG Governance Structure

Decision-Making Level

Strategy and Sustainability Committee

· The Board of Directors serves as the highest decision-making body for ESG governance and bears ultimate responsibility for ESG management and all material matters.

· Under the Board, the Strategy and Sustainability Committee is established. It is responsible for studying industry trends, formulating and reviewing the Company’s ESG strategies, policies, and targets, providing decision-making recommendations to the Board, and supervising the efective implementation of the strategy.

ESG Management Committee

Management Level

· The ESG Management Committee, chaired by the General Manager with heads of core functional departments serving as members, acts as the coordinating and steering body.

· It assumes specific responsibility for executing the sustainability strategy, approves work plans, coordinates resource allocation, and tracks and evaluates the overall progress of the Company’s ESG initiatives.

ESG Execution Team

Execution Level

· The ESG Execution Team serves as the core execution unit and comprises three specialized working groups.

Social Working Group

· Each working group is responsible for the onthe-ground implementation of specific topics, data monitoring, risk management, and the preparation of the annual sustainability report. They conduct regular reviews and summaries and report outcomes to the ESG Management Committee.

In 2025, BOTH achieved a significant breakthrough in sustainable development management. According to the assessment results from EcoVadis, a globally leading rating agency for corporate social responsibility and sustainable development, the company has received the Bronze Medal for two consecutive years. Furthermore, its total score in 2025 increased by 11 points compared to 2024, positioning its overall performance among the top 18% of assessed companies globally.

BOTH Achievements in Improving EcoVadis Rating for 2025

Score Change	Sustainable Procurement +6	Environment +3	Labour & Human Rights +11	Business Ethics +21
Key Management Improvements	Deepen the construction of sustainable supply chains by systematically incorporating ESG standards into supplier access and assessment, promoting suppliers to obtain environmental management system certification, and significantly increasing the proportion of overseas local procurement to enhance supply chain resilience.	BIM + modular innovation won industry awards; supported green construction, achieved year-on-year reductions in both hazardous and non-hazardous waste generation.	Deeply embedded “Diversity, Equality & Inclusion” and occupational health & safety into labor management systems and measures to establish a perceptible, quantifiable, and traceable human rights protection mechanism.	Continuously improved business ethics management system and procedures, ensure the applicability of our policies, and strengthen our risk management procedures to earn the long-term trust of our clients and investors through our actions.

BOTH 2025 EcoVadis Rating Score Changes

BOTH ENGINEERING TECHNOLOGY CO LTD (WUXI SITE)

Stakeholder Engagement

We uphold the principles of openness and transparency and attach great importance to two-way communication with stakeholders. Based on our business realities, we have systematically identified key stakeholder groups including shareholders/investors, government/regulators, clients, employees, suppliers/partners, and communities and established diverse, accessible communication channels. In 2025, the Company continued to focus on the core concerns of various stakeholders, actively responded to their expectations and suggestions regarding sustainable development eforts, and persisted in accurately disclosing relevant information in a truthful and precise manner.

Stakeholder Group	Key Concerns	Communication Channels
Shareholders & Investors	Corporate GovernanceInvestor Relations ManagementCompliance and Risk ManagementAnti-Bribery and Anti-CorruptionInnovation DrivenAddressing Climate Change	SSE e-Interaction platformShareholders’ meetingsInvestor on-site researchEarnings briefingsEarnings release conferenceRegular reports and disclosuresBrokerage strategy meetings, analyst communication meetings
Government & Regulators	Environmental Management SystemAddressing Climate ChangeEnergy UtilizationGreen ConstructionPollutant Emissions and Waste ManagementOccupational Health & SafetyCompliance and Risk ManagementIntellectual Property Protection	Policy tracking and implementationRegular reportingComplaint channelsMeetings & events
Clients	Environmental Management SystemOccupational Health & SafetyGreen ConstructionQuality ManagementCustomer ServiceInnovation DrivenData Security and Customer Privacy ProtectionAnti-Bribery and Anti-Corruption	Satisfaction surveysService & complaint channelsClient visitsSupply-chain audits

Stakeholder Group

Communication Channels

Daily operation of Labor Union

Diversity, Equity and Inclusion

Internal meetings

Occupational Health & Safety

Training programmes

Employees

Employee Training and Development

Feedback hotline/email

Anti-Bribery and Anti-Corruption

Corporate culture events

Performance reviews

Supplier evaluations

Anti-Bribery and Anti-Corruption

Innovation Driven

Supplier conferences

Suppliers & Partners

Sustainable Supply Chain

Daily email and telephone communication

Addressing Climate Change

Site visits, industry exchanges

Strategic cooperation

Supporting Community Development

Environmental Management System

Energy Utilization

Oficial website & media

Water Resource Utilization

Public & Communities

Company visits

Pollutant Emissions and Waste Management

Community volunteering

Circular Economy

Information disclosure

Ecosystem and Biodiversity Protection

Materiality Analysis

Material topics form the foundation of our ESG and sustainability management and disclosure. To ensure scientific and forward-looking topic identification, we referenced Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE(hereinafter referred to as the “Guide”), GRI Standards, UN SDGs, and other mainstream international and domestic frameworks, while incorporating macroeconomic policies, market conditions, and leading peer practices. This enabled us to build a comprehensive sustainability topic library.

In 2025, building on the 2024 identification results and adjusting for our business characteristics and operationa changes, we dynamically refined the topic library and ultimately identified 22 material topics. Following the double materiality principle (impact materiality and financial materiality), we conducted rigorous assessment and prioritization through internal/external expert consultations and management feedback.

BOTH Materiality Analysis Process

2025 Materiality Topic Adjustments

Minimize Environmental Footprint

Environmental Management System Addressing Climate Change Green Construction and Sustainable Delivery Resource Utilization and Circular Economy Ecosystem and Biodiversity Protection

Environmental Management System

BOTH regards environmental management as the cornerstone of sustainable operations. We not only pursue compliance but also proactively and continuously reduce our environmental footprint. Through systematic risk identification, process-driven institutional safeguards, and meticulous green office practices, the Company is dedicated to integrating environmental protection into every facet of its daily operations, laying a solid foundation for the Company’s green development.

Guided by the environmental philosophy of “strictly adhering to regulatory requirements in environmental management, continuously reducing environmental pollution, and assisting clients in building sustainable facilities,” BOTH complies with domestic laws and regulations, including the Environmental Protection Law of the People's Republic of China, the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste, the Law of the People's Republic of China on the Prevention and Control of Noise Pollution, the Law of the People's Republic of China on the Prevention and Control of Water Pollution, and the Regulations on Environmental Management of Construction Project. Simultaneously, the Company strictly adheres to relevant environment regulatory requirements in the countries and regions where its overseas subsidiaries are located. We have established internal systems such as the Regulations on Project Environmental Management and the Procedures for Hazardous Waste Management. Furthermore, the Company has established an efective environmental protection governance structure, continuously refines its systems, improves environmental protection measures, and enhances environmental benefits in its business development.

Environmental Governance Structure

In terms of governance structure, the Company's Strategy and Sustainability Committee serves as the core decision-making body, responsible for reviewing significant environmental matters and overseeing the strategic implementation of topics such as climate change, green construction, and the circular economy. At the execution level, various departments collaborate to implement these initiatives: the Procurement Department focuses on green procurement and refined management of raw materials; each business division promotes pollution reduction and carbon reduction, and energy conservation throughout the entire project lifecycle; the Administration Department optimizes energy and resource conservation measures in office operations; and the EHS Department strengthens environmental safety risk prevention and compliance management.

BOTH has established a robust environmental management system, requiring that all project operations and management adhere to environmental management procedures to ensure the compliant disposal and discharge of waste, wastewater, and exhaust gas. Regarding system construction, we have obtained the ISO 14001 certification for Environmental Management Systems.

In 2025, our total environmental protection investment amounted to RMB 2.0772 million, primarily allocated to the treatment of hazardous and general waste, the procurement of green construction materials, and technological upgrades for energy conservation and emission reduction. Through appropriate resource allocation, we continuously reduce the environmental footprint of our operations.In 2025, the Company recorded no penalties due to environmental violations and incurred no environmental fines.

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北京中大华远认证中心有限公司（北京市题阳区西项河西路3号楼100102环境管理体系认证证书

证书号：02024E1938R6M

柏诚系统科技股份有限公司(输—社会信用代码：913202002404990829

体系适用范围：位于中国江苏省无锡市滨湖区隐秀路800-2101的柏诚系统科技股份有限公司的机电工程施工总承包（含净化工程）的环境管理活动注册地址：中国江苏省无锡市滨湖区隐秀路800-2101

环境管理体系符合：GB/T24001-2016/ISO14001:2015 《环境管理体系 要求及使用指南】

发证日期：2024年12月16日；有效期至：2027年12月15日初次发证日期：2007年3月27日：换证日期：2025年12月12日

法：以证选营范面不标桥未获吸有就关国家规中的推关行非许征：资质许可的准是/强务难图：程次头证后的等一次散审棉自证证决弯之月起12个月内进行、此派每回隔不相过12个月操受一次审推、非码认证决定通过后证求方为有的：话书信盘可通过用率让收质食方网站(mC062%cn) 或扫拼下方二排码衰询

ISO 14001 Certificate

Environmental Risk Management

We conduct regular environmental risk assessments to identify potential environmental risk points. Through proactive risk management, we develop targeted mitigation strategies and continuously improve our environmental protection measures to minimize our environmental footprint.

Green Office

BOTH actively promotes the concept of environmental protection, fostering a green office atmosphere with participation from all employees. The General Manager's Ofice regularly organizes "Green Ofice Practices" sharing sessions during monthly administrative meetings, inviting representatives from various operational sites to share best practices in their daily work. By establishing this experience-sharing platform, we promote mutual learning and improvement among operating locations, continuously optimizing and improving in practice to efectively enhance the environmental benefits of ofice operations and jointly build a green ofice culture.

Addressing Climate Change

BOTH actively responds to the national "dual carbon" goals and the Paris Agreement, having integrated climate change into the Company's core governance structure. In accordance with the IFRS S2 Climate-related Disclosures and the Sustainability Disclosure Standards for Business Enterprises No.1— Climate (Trial) issued by the Ministry of Finance of the People's Republic of China, we systematically identify, assess, and manage climate-related physical and transition risks. We also develop science-based mitigation and adaptation strategies, committed to enhancing the Company's climate resilience and contributing to global temperature control targets.

Governance

The Board's Strategy and Sustainability Committee oversees climate change-related matters, provides guidance to management in conducting climate change governance, and makes decisions on necessary resource allocation. The Committee regularly receives climate reports from management and reviews annual sustainability report that include the material topic of "Addressing Climate Change."

Strategy

Based on the warming scenarios outlined in the Sixth Assessment Report (AR6) published by the Intergovernmental Panel on Climate Change (IPCC), we analyze the impact of climate change on our business operations, while also assessing how our operations may afect the climate and environment. The IPCC AR6 indicates that the global average surface temperature is projected to reach or exceed 1.5° C within the next two decades, accompanied by an increase in average precipitation with significant variability depending on region and season. Global mean sea levels will continue to rise, bringing increased uncertainty to monsoon climate patterns and changes in extreme precipitation patterns.

In response, we apply the framework of the Sustainability Disclosure Standards for Business Enterprises No.1— Climate (Trial) issued by China's Ministry of Finance to assess climate-related risks and opportunities, which serves as the foundation for our strategic planning. Guided by the principle of "mitigating climate change and comprehensively enhancing climate resilience," we are implementing a series of climate-related actions, including: managing climate-related risks, capturing climate-related opportunities, developing climate adaptation strategies, tracking key performance indicators related to greenhouse gas emissions, and continuously reducing our greenhouse gas emissions. We also plan to develop "dual carbon" strategies in the future, ultimately achieving carbon neutrality.

Risk Management

The Strategy and Sustainability Committee of the Board, as the highest governing body responsible for ESG matters, oversees management's eforts in implementing climate change risk management and integrates climate risks into the Company's overall risk management framework.

Management communicates the key priorities of climate risk management to the execution level in a timely manner and leads the Company in continuously enhancing climate adaptation resilience. This includes issuing early warnings for extreme weather events, optimizing risk assessment processes, and steadily reducing transition risks associated with climate change.

The executive team is responsible for implementing the company's climate change strategy, including carrying out prevention work against extreme weather disasters, implementing various preventive measures for heatstroke prevention and cooling, promoting the research and development of low-carbon technologies, and cooperating with climate change risk assessments to collect and analyze information, ensuring that the company can continuously strengthen its climate change risk management.

Metrcis and Targets

BOTH supports the goals of the Paris Agreement to limit the increase in global average temperature to well below 2 ° C above pre-industrial levels and to pursue eforts to limit the temperature increase to 1.5 ° C. We also support China's latest Nationally Determined Contributions (NDCs) for 2035. In our operations, we implement various energy conservation and carbon reduction measures, and monitor the efectiveness of our decarbonization eforts through greenhouse gas (GHG) emissions tracking.

The Company requires all business units to fully implement energy-saving measures to reduce GHG emissions. Additionally, through regular carbon inventories, we provide data support for the development of quantitative carbon reduction targets and pathways. Currently, we regularly hold internal sharing sessions on best practices for energy conservation and carbon reduction in our ofice operations. At all project construction sites, we utilize LED lighting and replace diesel and gasoline consumption with electric equipment, such as electric forklifts and electric shovels. Site management also includes ongoing awareness campaigns on energy conservation and carbon reduction, implementing the practice of turning of lights when not in use.

Furthermore, during the design and construction phases of cleanroom projects, we integrate and innovate modular technology, BIM technology, and AI technologies to reduce GHG emissions during cleanroom operations, providing clients with low carbon, energy efficient engineering service solutions. For example, in project construction, we commonly adopt high eficiency HVAC systems and introduce centralized air conditioning to enable intelligent contro of heating and cooling energy usage, efectively reducing energy consumption and GHG emissions in facilities.

[Case Study] National Two-Star Green Factory Building Project in the Biopharmaceutical Industry

BOTH actively implements the concept of green construction. In the design of a biopharmaceutical factory building project, we emphasized both the suitability and maturity of technologies, successfully helping the client obtain the national Two-Star Green Building Certification.

In this project, the Company prioritized the use of new energy-efficient wall systems, roofing insulation materials, and high-air-tightness energy-saving doors and windows. Combined with rooftop greening and optimized natural lighting and ventilation, we significantly enhanced the thermal performance of the building envelope while reducing operational energy consumption. Integrated grid-connected photovoltaic power generation and rainwater harvesting systems were installed to improve resource eficiency. Additionally, by promoting the use of locally sourced materials and optimizing structural solutions, we reduced transportation needs and building material consumption.

In terms of intelligent energy consumption monitoring and management, the project strictly adhered to relevant national and local technical specifications. A comprehensive monitoring system was established to perform itemized and categorized tracking of lighting, air conditioning, power systems, and specialized electricity usage. The system adopts a "centralized management, decentralized control" model, featuring full circuit data collection, remote meter reading, real-time analysis, and fault alarm functions. Through in-depth analysis of energy consumption patterns and refined management, the system helps clients promptly identify anomalies and develop improvement measures, efectively reducing operational costs and greenhouse gas emissions.

In terms of metrics management, we conduct an annual internal carbon inventory to account for Scope 1 and Scope 2 greenhouse gas emissions. By monitoring these indicators, we continuously identify potential opportunities fo carbon reduction.

BOTH's 2025 Greenhouse Gas Emission Performance

Green Construction and Sustainable Delivery

BOTH integrates green principles throughout the full project lifecycle, driving sustainable construction through technological innovation. We adhere to the highest national energy eficiency standards and, through the enhanced application of BIM and modular technologies, achieve precise management and resource optimization across design, construction, and operation phases. We are committed to delivering efficient, low-carbon green buildings to our clients, jointly building a sustainable future for the industry.

The Company upholds its commitment to environmental protection across all stages of engineering projects —integrating green principles into the design phase, procurement and subcontracting phase, fabrication and construction phase, and post-delivery operation and maintenance phase. This approach enhances resource and energy eficiency while avoiding resource waste.

We adhere to the latest national standards in the design and construction of green buildings, while continuously advancing R&D in green technologies and deepening the application of BIM, modular construction, and AI to support the low carbon transition of the construction industry.

Examples of Green Building Standards Followed by BOTH

Planning and Design Phase

During the project planning and design phase, BOTH ensures environmental compliance of the cleanroom system in accordance with regulatory requirements and client needs, while incorporating green building materials and high efficiency ventilation and heating systems to the greatest extent possible. In terms of spatial management, BIM technology is applied to optimize space utilization, improve natural lighting and ventilation design of the occupied spaces, utilize natural light to reduce lighting energy consumption, and minimize ventilation energy consumption through rational layout.

Procurement and Subcontracting Phase

During the procurement and subcontracting phase, the Company utilizes BIM technology to implement refined material and procurement management, preventing material waste. We also set requirements for subcontractors regarding material utilization efficiency to limit resource waste. To ensure the implementation of resource conservation principles, the Company has established a normalized material monitoring mechanism, conducting specialized monthly analyses of project surplus materials and inventory. The Company links material consumption performance to the points-based evaluation of key personnel in roles such as engineering, material management, and procurement, reinforcing cost control responsibilities. Additionally, by analyzing the causes of surplus materials and developing targeted improvement plans, a closed-loop management system is formed to continuously enhance resource utilization eficiency.

In managing subcontractors, we set targets for their material wastage rates and incorporated material utilization targets and waste reduction requirements into the contract terms. During project construction, we included subcontractors' resource conservation performance in the supplier evaluation system, urging them to proactively control material consumption during construction.

Fabrication and Construction Phase

In the fabrication of cleanroom building components, BOTH utilizes modular prefabrication technology to manufacture modules such as power equipment rooms, air conditioning rooms, pure water and wastewater systems, and data centers in factories. This significantly shortens on-site construction time and minimizing pollutant emissions, energy consumption, and greenhouse gas emissions at the construction site. In factory manufacturing operations, we uphold the principles of resource conservation, energy eficiency, and low-carbon practices, implementing various measures to reduce the environmental footprint of our factories.

Operations and Maintenance Phase

The BIM deep model achieves accurate reproduction of the building entity and digital model, covering the operating parameters of electromechanical equipment and operational indicators such as water and electricity within the factory. Through the intelligent monitoring platform, customers can monitor the equipment operating status in real time, effectively improving operation and maintenance efficiency. In addition, the existing BIM model can directly support subsequent renovation and expansion design and planning, significantly improving work eficiency.

Level of BIM Application

[Case Study] National One-Star Green Building Project in the Biotech Industry

We carried out the design, planning, and construction of this project in accordance with the Green Building Evaluation Standard (GB/T 50378-2019), helping the client obtain the National One-Star Green Building Certification.

In terms of application of green building materials, the project prioritized the use of high-performance, lightweight, and recyclable green building materials. While ensuring safety and functional requirements, we fully utilized recycled and reused old building materials to reduce waste generation at the source, achieving both resource conservation and enhanced building quality.

With regard to energy planning, to improve energy eficiency, the project introduced air conditioning units with Level 2 energy eficiency. Additionally, based on the local climate conditions of the project site, we applied a solar water heating system for hot water supply. We actively incorporated renewable energy sources such as solar thermal, solar photovoltaic, and shallow geothermal energy into the energy planning framework, enhancing the building's green energy performance. In the terms of water Resource Management, we selected water-eficient fixtures in accordance with the standards set forth in Water Saving Sanitary Appliances (GB/T 31436-2015) and General Technical Specifications for Water Saving Product (GB/T 18870-2011), ensuring that water eficiency levels meet Grade 2 requirements. Furthermore, we designed a rainwate harvesting system and constructed a rainwater storage tank. The system employs a rainwater filtration process comprising "grille flow + coarse filtration + fine filtration" to filter, disinfect, and sterilize the collected rainwater, ensuring that the harvested rainwater meets the standards for reclaimed water.

Deepening BIM Application

BIM technology utilizes three-dimensional models to optimize spatial layouts, efectively avoiding pipeline clashes, and simulates the entire project construction process. Through precise material management, it reduces waste generation at the source. Meanwhile, the synergistic application of BIM and modular technology significantly shortens on-site construction periods, efectively reducing pollutant emissions and resource consumption such as water and electricity during construction, thereby lowering greenhouse gas emissions.

To continuously deepen the application of BIM technology and drive ongoing technological innovation, BOTH has integrated over 40 dedicated BIM professionals into the design teams of various business divisions. This enables deep collaboration across disciplines based on BIM technology, allowing BIM to be deeply involved in every stage of the project—from planning and design to construction, and final acceptance and delivery. By utilizing the BIM cloud platform and 3D imaging platform, all project participants achieve eficient online collaboration. The platform supports timely updates of BIM models, drawings, and on-site 3D images, as well as multi-party reviews, issue tracking, and version management, ensuring that all personnel can construct according to the latest standards antytime, anywhere, efectively guaranteeing consistency between models, drawings, and physical structures. This approach significantly improves management eficiency and reduces rework and waste, and delivers accurate digita models to owners, reducing resource consumption and pollutant emissions at the source.

In 2025, BOTH's BIM innovation application achievements won second and third prizes at the 10th Jiangsu Province Installation Industry BIM Technology Application Awards, marking a new milestone in our BIM innovation and integration. In the future, we will continue to explore innovative applications of BIM+ technologies, integrating BIM with advanced technologies such as AI, IoT, digital technologies, and other cutting-edge technologies to provide clients with more energy-eficient and low-carbon green buildings through intelligent construction

[Case Study] Efficient Construction of a Vertical Process Pharmaceutical Plant Based on BIM Technology

The vertical process flow is complex, and the limited space within the facility presents a high risk of design failures such as pipeline clashes and spatial layout conflicts, which can lead to resource and energy waste BIM models provide a comprehensive three-dimensional analysis of all project processes, enabling optimized pipeline layouts and clash detection within the model. By adjusting two-dimensional drawings prior to construction and guiding the construction team during on-site execution, rework is avoided at the source. This approach enhances material utilization eficiency throughout the project, conserves energy, and reduces exhaust gas and wastewater emissions during the construction.

Third Prize in the 10th Jiangsu Province Installation Industry BIM Technology Application Competition (2025)

Water Resource Utilization

BOTH strictly complies with national laws and regulations, including the Water Pollution Prevention and Control Law of the People's Republic of China, and is committed to actively promoting water conservation and continuously advancing water recycling eforts. In our daily operations, we implement various measures to protect water resources.

In terms of water conservation goals, the Company supports national water conservation targets and carries out water conservation eforts in accordance with policy documents such as the National Water Conservation Action Plan and the Key Points of National Water Conservation Work in 2025. We track water usage performance, actively utilize alternative water sources, and continuously improve the eficiency of water recycling.

Regarding water conservation measures, we implement water conservation measures through diferent approaches across our factory operations and project construction activities. These include the use of water-eficient fixtures such as water-saving faucets, water-saving toilets, and mist cannons to reduce water consumption. Simultaneously, we actively promote the recycling and reuse of water resources by introducing alternative water sources to reduce the volume of freshwater withdrawal.

[Case Study] Use of Alternative Water Sources: BOTHX Advanced Manufacturing Installs Rainwater Reuse System

In the construction and operation of our factory facilities, we have introduced sponge city infrastructure and implemented rainwater reusing measures, effectively reducing freshwater withdrawal and continuously improving water eficiency. Our rainwater harvesting system can hold 138 cubic meters of water per cycle. The harvested rainwater is used for landscape irrigation and road washing, reducing municipal water consumption and lowering operating costs, achieving both environmental and economic benefits.

In terms of wastewater management, BOTH strictly complies with laws and regulations including the Water Pollution Prevention and Control Law of the People's Republic of China and the Regulations on the Administration of Pollutant Discharge Permits, and has established the Company's Project Environmental Management System to implemen wastewater management. Prior to project construction, we apply to the local government for and obtain Urban Sewage Discharge into Drainage Network Permit to ensure compliant discharge. In terms of water ecology protection, the Company's Project Environmental Management System stipulates that discharging waste into water bodies nea construction areas is prohibited; it is also strictly forbidden to use hazardous waste as backfill material to prevent contamination of underground water sources.

BOTH's production operations do not involve significant water consumption or high-pollutant discharges. The potential negative impact on water ecology mainly stems from small quantities of liquid hazardous waste, such as coolant preparation wastewater and cleaning agent mixing wastewater. In response, we perform compliant pre treatment and then entrust qualified third-parties for disposal.

Compliant wastewater treatment procedures are also implemented at our construction sites, ensuring proper handling of wastewater. Specific measures include: installing drainage ditches and sedimentation tanks at project sites, requiring that construction wastewater be treated by sedimentation before being discharged into the municipa sewage pipeline; installing oil separation tanks for oily wastewater from project sites and living areas, with waste oil collected and processed by qualified third-party agencies; setting up temporary flush toilets and septic tanks equipped with anti-leakage measures and regularly cleaned to prevent overflow; and ensuring domestic sewage is matured in septic tanks before being regularly collected by municipal septic tank suction trucks.

Currently, none of our project operation sites are located in arid areas, and there is no risk of water use or water withdrawal. In the future, we will gradually improve water resource risk management, enhancing the Company's climate resilience through stable water supply management. Through stringent controls at every stage, the Company recorded no instances of non-compliant or excessive wastewater discharge in 2025, and no penalties for violations were incurred.

Pollutant Emissions and Waste Management

BOTH adheres to the concept of green construction, continuously reducing pollutant and waste emissions, and implements site management standards that exceed regulatory requirements to minimize the negative impacts of exhaust gas, wastewater, and hazardous waste on the environment and human health.

BOTH's production operations do not involve significant pollutant emissions and have no material impact on air, wate bodies, or soil. The Company strictly complies with the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and has established internal policies including the Regulations on Project Environmental Management and the Procedures for Hazardous Waste Management to implement compliant management measures for pollutants, general solid waste, and hazardous waste in daily operations.

In accordance with the Procedures for Hazardous Waste Management, the Company conducts environmental due diligence by identifying and assessing hazardous waste that may be generated during project construction prior to commencement. Based on the assessment results, the Company plans hazardous waste disposal measures and develops emergency response plans to mitigate the negative impacts of hazardous waste on the environment and human health.

Hazardous waste generated during project construction primarily includes empty containers from epoxy application, empty paint buckets, and waste adhesives from insulation work. For disposal, we establish temporary hazardous waste storage warehouses in compliance with regulatory requirements, where dedicated personnel store and transport hazardous waste according to its classification, and engage qualified third-party vendors for hazardous waste disposal. To ensure closed-loop management, the Company has implemented Hazardous Waste Receiving Records, Hazardous Waste Outbound Records, and Hazardous Waste Disposal Records to document and track hazardous waste across all projects, thereby enhancing environmental compliance. In terms of solid waste management, the Company follows the 3R principle of Reduce, Reuse, and Recycle to support the development of a circular economy. General solid waste is segregated and managed by category, with priority given to recycling and reuse. Solid waste that cannot be recycled is disposed of by qualified third-party vendors.

Energy Utilization

In BOTH's business activities, including office operations, project implementation, and product manufacturing, the main types of energy consumed are electricity and gasoline (for vehicles). We uphold the principle of energy conservation, continuously optimizing energy use in our operations and implementing low-carbon operational strategies. At the same time, we actively provide energy-efficient building solutions for clients during project construction, promoting the green transformation of high-tech industries. In terms of management systems, we strictly comply with laws and regulations including the Energy Law of the People's Republic of China, the Law of the People's Republic of China on Energy Conservation, the Electric Power Law of the People's Republic of China, and the Measures for the Administration of Electricity Conservation. We have established internal policies such as the Administrative Measures for Office Areas of Headquarters and Branches to ensure that all employees implement energy-saving measures.

Regarding energy-saving measures, we prioritize the use of clean and renewable energy, conduct regular inspections and maintenance of energy equipment to ensure eficient and energy-saving operation, and continuously strengthen energy metering management to promptly identify anomalies in energy consumption, implementing corrective actions to ensure eficient energy use. Additionally, we use energy-eficient lighting fixtures in both ofice spaces and construction sites. All project sites are equipped with LED mobile lighting, and the use of heat-source lighting such as halogen lamps or sun lamps is strictly prohibited.

Furthermore, as a high-value service provider committed to advancing decarbonization and integrating sustainability principles throughout the entire project lifecycle—from design and procurement to manufacturing, implementation, and operation and maintenance:

◆ During the design and planning phase of buildings, we incorporate energy conservation considerations into the solutions we provide to clients, helping them achieve their carbon reduction goals and improve energy eficiency. We implement energy-efficient design through simulation analysis of natural ventilation and daylight, utilize energy-efficient lighting systems, employ high-efficiency heating equipment, and introduce smart energy meters and intelligent monitoring systems based on client needs. These energy-saving and emission reduction measures help clients minimize or avoid energy waste through refined energy management.

◆ During the construction phase of buildings, we actively use modular technology to reduce energy consumption from on-site construction through factory prefabrication. For example, in a Class 100 electronic chemical reagent filling workshop project, our modular air conditioning design efectively helped the client continuously optimize energy conservation control.

[Case Study] Benchmarking against international best practices to create a low-energy benchmark project

In response to the trend of green and low-carbon transformation, the company has comprehensively benchmarked against LEED, Thailand's TREES green building certification standards, the Green Building Evaluation Standard, and the Evaluation Specification for Zero-Carbon Factory in a semiconductor cleanroom construction project, aiming to create an international, high-standard green and low-carbon chip manufacturing base. From the initial design stage, the project prioritized energy conservation, selecting highefficiency products with national level 1 energy efficiency or IE4 standards for core power equipment such as chillers, air compressors, circulating water pumps, and motors, ensuring eficient and reliable equipment operation.

Regarding energy system optimization, the project adopted a medium- and low-temperature chilled water system and a large temperature difference design, significantly improving the coefficient of performance (COP) of the chiller units. It also achieved energy recycling through compressed air system cooling water heat recovery technology. Simultaneously, the project actively promoted the application of renewable energy, planning the building-integrated solar system design concurrently with the building design, ensuring maximum utilization of clean energy without reducing the solar radiation standards of adjacent buildings. Through these measures, the project effectively reduced energy consumption and carbon emissions in the semiconductor production process, building a green and eficient operational foundation for the customer.

BOTH's 2025 Energy Performance

Resource Utilization and Circular Economy

BOTH is committed to innovating traditional models. Guided by the principle of maximizing resource efficiency, with modular technology as a core strategy, and supplemented by refined waste material management and material allocation mechanisms, we enhance material reuse rates and recycling value. We actively develop the circular economy, persist in reducing waste generation at the source, increase resource recycling and reuse ratios, and continuously innovate modular technology, using green building technologies to help clients reduce the environmental footprint of their operations.

Development Strategy for Modular Intelligent Manufacturing

Compared to on-site construction management of traditional buildings, modular construction offers advantages such as environmental friendliness and intelligence, more stable quality, and higher delivery certainty. We focus on advanced manufacturing industries such as life sciences, semiconductors, and new display technologies. Through high-certainty, sustainable modular integrated solutions and high-performance cleanroom solutions, we help clients achieve eficient and sustainable development in increasingly complex market and climate environments.

Modular cleanrooms adopt a factory prefabrication and on-site assembly model, completing strict quality contro before installation. This effectively mitigates construction risks, ensures consistent performance, and enables predictable delivery. Meanwhile, factory-integrated production significantly improves energy and resource utilization efficiency, substantially shortens construction cycles, and reduces on-site waste, pollutant emissions, and noise pollution at the source. Furthermore, standardized building components are movable and reusable, effectively increasing the recycling and reuse ratio of building materials and contributing to resource circularity.

Four Key Advantages of Modular Technology

Shortened Project Timelines: Efficient Delivery and Sustainable Construction

Factory prefabrication significantly shortens construction periods. Integrated production enhances energy and resource eficiency, reduces waste, pollutants, and noise, thereby achieving eficient and sustainable delivery.

Higher Delivery Certainty: Predictable and Compliant Assurance

Factory prefabrication centralizes quality management and testing, reducing on-site uncertainties and mitigating environmental and safety risks. Digital monitoring ensures compliance, enabling predictable delivery.

Enhanced Quality Consistency: Unified Control and Stable Performance

Centralized quality management in factory prefabrication ensures consistent performance of key components, avoiding on-site quality fluctuations. This safeguards delivery quality and meets high-performance requirements.

Easier Expansion and Reconfiguration: Sustainable Circular Design

Modular technology supports diverse construction approaches. Components are movable and reusable, allowing customization of functions and layouts on demand, and enhancing expansion eficiency. Standardized components increase the material recycling and reuse ratio, supporting sustainable circularity.

Following the national strategic direction for intelligent construction and new industrialization, we persist in deeply cultivating modular technology. We enhance the standardization capabilities of modular construction, improve the recyclability and reusability of building components, and reduce the generation of construction waste at the source.

BOTH Core Modular Technology

Compliant Construction Design

◆ In-depth analysis of clients' manufacturing processes, providing customized plant layout planning services based on functional zoning, personnel flow, and material management and usage.

◆ Design services benchmarked against GMP standards from multiple countries including the U.S. FDA, EU EMA, WHO, and China NMPA.

Integrated Software Platform

◆ Software enables one-click DFMA (Design for Manufacturing and Assembly) conversion from conceptual design to detailed CAD design, covering a parametric design library and rapid configuration functions.

◆ All modules adopt unified interfaces. The intelligent BOM (Bill of Materials) system supports full-process traceability, ensuring transparency from design to delivery and facilitating sustainable supply chain management.

Millimeter-Level Precision Control Technology

◆ Module dimensional accuracy is controlled within 2 millimeters. High-precision manufacturing is achieved through specialized fixtures, reducing material waste.

◆ Multiple sealing and protection technologies enhance module durability and extend service life, meeting requirements for resource conservation and circularity.

Collaborative Management Technology

◆ High-strength steel frames with anti-corrosion and fireproof treatment enhance structural safety and durability.

◆ Integration of process equipment to deliver turnkey process units, optimizing construction workflows and reducing on-site energy consumption.

◆ Each module is equipped with a unique digital identifier for real-time status monitoring, supporting eficient operation and maintenance, resource optimization, and enhancing sustainable operational capabilities.

As of now, our modular manufacturing plants have developed a unique set of core modular technologies and service systems. Based on the differentiation of our modular technology roadmap, we have formed unique core product forms.

[Case Study] Integrated Application of BIM Models and Modular Technology: Construction of Rapid-Assembly Cleanrooms

We delivered a rapid-assembly cleanroom solution for a client in the U.S. electronics manufacturing sector. This project was located within the client's existing plant and was a typical brownfield project, imposing high requirements for construction timelines, operational disruption control, and compliance. The project faced four major challenges during implementation: constraints of the existing plant structure requiring construction without impacting ongoing operations; a tight project schedule demanding clear production ramp-up timing; the need to comply fully with relevant U.S. standards and codes; and cross-regional delivery, requiring higher certainty in design, manufacturing, and quality control.

Faced with these challenges, we adopted a rapid-assembly cleanroom solution. Design, manufacturing, pre-assembly, installation, commissioning, and testing of the cleanroom were completed in China, with the highly integrated clean units then delivered in entirety to the U.S. site for rapid deployment. Through modular and standardized design, critical process steps were significantly front-loaded. A high proportion of manufacturing and validation was completed in a controlled environment, markedly shortening on-site construction and commissioning periods, effectively reducing overseas construction risks and uncertainties, and helping the client rapidly achieve cleanroom environment upgrades and commence production on schedule.

Furthermore, standardized cleanrooms possess green attributes such as being movable, easily expandable, and having reusable building components. Through the integrated application of BIM models and modular technology, we have accumulated mature experience in cross-border delivery, rapid-assembly cleanroom engineering capabilities, and international standards compliance execution, providing a replicable solution pathway for overseas plant renovations and rapid capacity expansion.

In the future, BOTH will continue to strengthen the standardization capabilities of modular buildings, committed to promoting the deep integration of construction industrialization and intelligent manufacturing. Standardized prefabricated building components, by virtue of their reusability and recyclability, will significantly enhance resource circularity rates. Simultaneously, they will optimize transportation efficiency, reduce environmental footprint, and strengthen environmental benefits. Industrialized construction processes, through standardized production, improve eficiency and reduce resource consumption and carbon emissions from on-site construction, further aligning with the requirements of sustainable construction.

Recycling and Reuse in Project Construction

During project construction, we implement the concept of circularity to continuously reduce resource waste. To this end, we have formulated the Detailed Rules for the Disposal of Scrap Materials, under which the Procurement Center manages materials holistically. On one hand, surplus project materials and inventory surplus materials are transferred between projects through a balanced inventory mechanism, achieving internal resource circularity. On the other hand, scrap materials that cannot be internally transferred are collected centrally and entrusted to professiona organizations for regeneration processing, promoting the social reuse of scrap resources.

In LEED building projects, we carry out construction waste recycling, track the amount of construction waste generated, and continuously monitor the waste diversion rate to reduce the final landfill volume of construction waste and ensure efective waste utilization.

In 2025, we launched a special initiative focused on refined material management. We issued the Notice on Updates to the Disposal Process and Control Requirements for Engineering Scrap Materials, optimizing the disposal and control processes for engineering scrap materials. This required all projects to assess whether surplus engineering materials could be allocated and reused before initiating material procurement. It also strengthened environmenta responsibility requirements for suppliers, incorporating waste reduction targets and requirements into contracto contracts to continuously improve resource eficiency.

To ensure the company's systems are fully implemented, we classify and manage construction materials, with categories including metals, non-metals, carbon steel, and stainless steel. Surplus materials from engineering projects are uniformly allocated and reused by the Procurement Center. Scrap materials that cannot be internally reused are recycled for value by professional third parties, reducing resource waste.

To instill a sense of resource conservation among employees, we link material utilization rates to the monthly assessments of frontline responsible personnel such as engineers, material administrators, and project managers. We track the company's material management situation monthly. When a project has excessive surplus materials, a traceability investigation is initiated, requiring project team members to review the causes of the surplus, analyze potential areas for improvement, and implement corrective actions. In 2025, we conducted a joint special audit on resource efficiency, carrying out supervision and inspection together with the Audit Department. We analyzed opportunities for improving refined resource management, held accountable project management personnel who generated excessive surplus materials, and further enhanced the company's resource utilization efectiveness through corrective actions and system dissemination.

[Case Study] Enhancing Resource Efficiency Through Project Reviews

In 2025, the company identified potential resource waste risks in 2 construction projects through resource eficiency tracking. In response, the company required the project teams to collaboratively investigate with the procurement department. Through traceability analysis, they reviewed material management across the entire project process and implemented relevant measures based on the investigation findings. Resource waste was avoided through internal resource allocation and reuse. At the same time, we held internal experi ence-sharing sessions, alerting all project managers to enhance awareness of refined resource managemen by internally highlighting areas needing improvement.

In 2025, we conducted recycling work for waste cables, scrap iron, scrap aluminum, scrap stainless steel, and waste plastics from engineering projects, transferring these materials to qualified professional organizations for regenera tion and reuse, efectively reducing waste generation.

2025 Resource Recycling and Reuse Performance

Ecosystem and Biodiversity Protection

BOTH deeply understands the importance of ecological health. Corporate economic activities cannot be separated from the resource guarantees provided by ecosystems. A healthy ecosystem can enhance land stability and water and soil conservation capabilities, reducing engineering risks such as landslides, mudslides, and ground subsidence, thereby lowering construction and maintenance costs. On the other hand, climate-resilient solutions are a key driver of the company's business development. The Company is committed to providing eco-friendly engineering services, assisting clients in reducing environmental risks, and enhancing the climate adaptability and sustainable development resilience of the manufacturing industry.

In project operations, we strictly implement ecological protection measures to minimize disturbance to the surrounding environment. At the same time, we actively participate in land ecological protection projects. By supporting methods like sustainable agriculture, we proactively restore and nourish ecosystems, achieving harmonious coexistence with nature.

The Company adheres to the concept of green construction, complying with laws and regulations such as the Environmental Protection Law of the People's Republic of China and the Wildlife Protection Law of the People's Republic of China to implement relevant ecological protection measures. We focus on ecological protection in our operations, actively participate in ecological protection projects, and aim to reduce negative impacts on biodiversity

We support the national biodiversity conservation plan, the China’s National Biodiversity Strategy and Action Plan (2023-2030). In all business activities, priority is given to avoiding negative impacts on the ecosystem. During engineering construction, we continuously monitor indicators such as noise, wastewater, and hazardous waste, implementing all environmental protection measures to avoid negative impacts on the natural environment such as soil and water bodies surrounding the projects. In 2025, none of our project constructions involved biodiversity sensitive areas, and there were no potentially significant ecological risks.

Additionally, BOTH participates in land ecological protection projects, helping farmers produce safe and environmentally friendly rice. Within the designated cultivation area, non-hybrid rice seeds are selected to protect biodiversity, and an annual single-cropping practice is adhered to, ensuring the soil gets adequate rest. This supports the economic development of the local countryside while simultaneously achieving soil ecological protection.

Creating Longterm Value for Clients, Employees, Partners,and Society

Creating Value for Clients Driving Industry Leadership Through Innovation Building a Responsible Supply Chain Employee Development and Well-being Promoting a Sustainable Future

Creating Value for Clients

Excellent Delivery

Excellent quality management is the core of long-term value creation and earning stakeholder trust. We uphold a reputation-driven, customer-centric philosophy. Through professional, honest, pragmatic, and innovative services, we deliver high-efficiency, high-certainty, safe, and reliable full-lifecycle integrated solutions. BOTH goes beyond traditional processes and standards in quality management. We internalize quality awareness as a core organizational capability and apply lean process management to ensure project success and operational excellence, creating reliable value that exceeds client expectations.

As a high-value provider of cleanroom system integration solutions for high-tech industries, BOTH consistently follows the operational principle of “Lean Methods, Process Excellence”. In compliance with the Construction Law of the People’s Republic of China, Regulations on the Quality Management of Construction Projects, Administrative Regulations on the Work Safety of Construction Projects, the Code for Quality Management of Engineering Construction Enterprises, and Unified Standards for Construction Quality Acceptance of Building Engineering, we have formulated systematic quality control policies including the Project Quality Management System, Project Quality Management Plan Regulations, Project Quality Audit Regulations, and Project System Delivery Management Rules These policies continuously improve our process management system, strengthen full-process detail control, and ensure high-quality delivery through standardized operating procedures.

In 2025, we closely tracked updates in national regulations and industry standards and completed revisions to management specifications covering piping materials, ventilation and electrical engineering acceptance standards, process safety regulations, and other areas. These updates have strengthened the foundation of project compliance and fully leveraged our dynamic, responsive management capabilities.

Relying on a systematic quality management system and rigorous risk control mechanisms, BOTH has maintained ISO 9001 Quality Management System certification since 2007. Our subsidiaries — YOOTH Engineering Design, BOTHX Advanced Manufacturing, and Getek Molecular Filtration Technology — have also achieved and sustained this certification.

Regarding the quality management team, we have established a vertically integrated quality management architecture. The Engineering Delivery and Resource Management Center coordinates with Quality Business Partners (QBP) from each business division. This structure extends downward to project managers and quality managers, while linking with heads of construction units and technical leads to form a layered, responsible quality management network. At the project level, quality managers lead execution in collaboration with dedicated Quality Control (QC) teams.

BOTH Quality Risk and Opportunity Management

Opportunity Management

We have established a comprehensive full-lifecycle quality management system for engineering projects, dividing each project into five key stages — planning, preparation, implementation & delivery, settlement & completion, and maintenance — to form a complete closed-loop management cycle. At the execution level, we strictly implement the “533” dynamic management principle. Through three milestone nodes (Kick-of Meeting, Project Delivery Review Meeting, and Summary Meeting) and three assessment evaluations, we achieve precise control of project milestones. At the same time, we deepen the “10103” planning management mechanism, coordinating 10 major management plans, 10 major internal delivery plans, and 3 major external delivery plans to ensure full-process controllability and excellent delivery of engineering quality.

BOTH Full-Lifecycle Quality Management

10% Control Point: Project Planning & Preparation 10 Major Plans

BOTH “1590” Project Management Stages

50% Control Point: Mid-stage Control & Supervision Ensure efective implementation of all plans

90% Control Point:

Internal Delivery 10 Major Plans, External Delivery 3 Major Plans

Project Planning Stage

Immediately conduct preliminary planning work after project award.

Project

Preparation Stage Prepare the project preparation work plan and carry out all preparatory tasks.

Project Implementation & Delivery Stage Execute project implementation; maintain constant focus on delivery to ensure reliable system operation.

Project

Completion Stage Execute and supervise the completion and delivery plan.

Project

Maintenance Stage Fulfil contractual quality warranty obligations with rapid response and reliable operation.

BOTH Quality Control System

To ensure follow-up and tracking of project quality management, the company’s overall quality management objectives are broken down into specific indicators that are embedded throughout the entire project lifecycle. Through rigorous follow-up and implementation, all projects delivered by the company in 2025 fully achieved the established quality objectives.

2025 Quality Management Targets and Achievement

In 2025, we continued to deepen quality management system development and improve management efectiveness across multiple dimensions. In terms of institutional development, we conducted gap analysis and refinement of relevant regulations and standards, strengthened compliance requirements and operational specifications, and implemented system patch work. During the reporting period, we updated special operating standards for critical processes such as pressure piping installation and epoxy flooring construction in line with the latest regulations and industry standards, while simultaneously optimizing the decision-making mechanism of the Engineering Technology Committee.

In technical standards and experience accumulation, we integrated past project experience to compile the Compilation of Common Construction Quality Defects. This document analyses root causes of common problems and frequently occurring defects in various systems and formulates preventive measures, effectively reducing the occurrence rate of common quality defects during execution. Additionally, to strengthen refined management, we upgraded the Project Quality Management Plan Template to provide more detailed closed-loop control of key nodes including materials, personnel, technology, and risk, thereby improving execution precision and risk prevention capabilities.

BOTH prioritizes building quality management culture and continuously conducts multi-level training for quality related personnel. For routine training, the Engineering Delivery and Resource Management Center adopts a dynamic training model that combines online and ofline methods tailored to actual project needs to ensure timel and effective knowledge transfer. To reinforce the “quality red line” awareness among all employees, we have designated 23 June each year as “Quality Alert Day”. Through comprehensive quality system reviews, in-depth debrief of past quality incidents, and thorough on-site hazard inspections, we deliver warning education to all levels o management and frontline workers. Activities include quality case presentations, special site inspections, and closedloop summaries. In addition, we have developed and are systematically advancing a specialized series of training programs for engineers and key quality management personnel to enhance the quality management capabilities of our core team.

[Case Study] Specialized Full-Lifecycle Quality Management Capability Enhancement Training for Engineers

In 2025, we focused on engineers and key quality management personnel and launched a specialized full lifecycle quality management empowerment training program aimed at building a highly professional qualit management team. The training content forms a complete knowledge map from “system understanding” to “practical implementation”, covering topics such as:

■ Institutional processes and planning management: in-depth interpretation of project quality management sys tem architecture and clear procedures for quality plan preparation and execution.

■ Work instructions and process control: systematic introduction of work instruction application standards and update mechanisms, strengthening construction quality standards and inspection methods for critical processes and special operations.

■ Material receipt and verification management: detailed review of equipment and material verification processes, responsibility division, and defect handling mechanisms to enhance material identification and control capabil ities.

■ Model-leading and practical implementation: full rollout of the “model-leading” mechanism, clarifying imple mentation plans, site selection, acceptance standards, and on-site briefing requirements for model projects.

[Case Study] Project Quality Follow-up and Operational Optimization Practices

In 2025, at the one-year operational milestone of a major industrial plant project, we organized a technica expert team to conduct an in-depth quality follow-up visit. The inspection focused on core process systems and cleanroom environmental control systems and confirmed stable overall project operation with al performance indicators remaining excellent.

While verifying current operating status, the team leveraged professional expertise to proactively identify potential risks. Targeted preventive rectification recommendations were provided for issues including potential equipment ageing risks, installation detail deviations, and areas for optimization in system operation logic identified during the visit. In addition, we proactively ofered clients energy-saving and consumptionreducing solutions, including optimization of cold-source supply and airflow organization adjustments, helping clients reduce operating costs while maintaining eficient system performance.

Selected 2025 Project Awards

Project / Awarding Entity

Hua Hong Manufacturing (Wuxi) Project

Award Title

Outstanding Quality Team

CXMT Integration (Beijing) Storage Technology Co., Ltd

Phase II Facility MEP Project of CXMT Hefei 12-inch Memory Wafer Manufacturing Base

Outstanding General Contractor of the Year 2024

Jiangsu Sinopep-Allsino Biopharmaceutical Co., Ltd.

Best Dedication Award

Outstanding Project Management Team

Zhejiang Clongene Biotech Co., Ltd.

Third Prize for Outstanding Special Construction Scheme

GalaxyCore Inc.

Zhuzhou CRRC Medium and Low Voltage Power Device Project

Shanghai Bracco Sine Pharmaceutical Renovation Project

Best Partner of 2025

Best Partner

CXMT Corporation

Outstanding Contractor

2024 Outstanding Management Team

Customer Service

We position customer service as a commitment to long-term value co-creation. We ensure partnership stability through rigorous source-risk control, enhance response immediacy via regionalized service networks, and actively participate in industry collaboration platforms to explore sustainable development pathways. We always adhere to the business philosophy of “Achieving Client Success and Creating Value for Clients” and strive to become a trusted strategic partner, safeguarding value throughout the full project lifecycle and jointly achieving high-quality development goals.

We have always regarded “customer-centric” as the core tenet of development. BOTH has built a service culture system encompassing four dimensions: “Focus on Client Needs”, “Rapid Response and Effective Action”, “Commitment to Client Success”, and “Care for Client Experience”. We consistently think from the client’s perspective and meet their needs through professional services to achieve mutual benefit and win-win outcomes.

We have set customer satisfaction as a key performance indicator for all business divisions and units, with a target orientation of 100% satisfaction. We have established an evaluation system centered on delivery outcomes, with particular focus on actual client feedback and complaints. Through a strict red-line management mechanism, “zero major complaints and zero litigation disputes” serves as the baseline for service qualification. This approach fosters a high sense of responsibility among all employees in daily communication and feedback handling, safeguarding client service experience.

In customer service risk management, we adhere to a “client-centered” risk control strategy and advocate avoiding partnership risks at the source through rigorous upfront screening to ensure partnership stability and sustainability. We have established a strict business opportunity risk assessment mechanism that initiates comprehensive risk evaluation from the information acquisition stage, systematically considering key factors including clients’ ability to fulfill obligations and potential legal disputes. We apply differentiated risk control strategies for different client types and utilize efficient risk assessment mechanisms to ensure client projects proceed efficiently with low-risk, demonstrating our responsibility to our clients.

To respond more nimbly to client needs, we actively promote regionalized service layout. In 2025, we established regional ofices in Wuhan, Beijing, and other locations and formally launched the Southwest BU in Chengdu. These regional offices have created an integrated service model combining service, business, and resources, forming frontline positions for localized client service and demand response, precise project information acquisition in coordination with headquarters, and deep cultivation of local government and association resources. Through the establishment of regional offices, we have not only rooted services locally but also provided clients with comprehensive support from project landing to long-term operation.

Industry exchange is an important initiative for BOTH to proactively reach out to clients and enhances pre-emptive offerings. We actively participate in domestic and international industry exhibitions and technical exchange conferences, sharing successful case studies and cutting-edge technologies to help clients broaden their perspectives and provide professional support for their project decisions. In 2025, our exhibitions and participation covered core business areas including cleanroom technology, semiconductors, pharmaceutical equipment, and display technology.

[Case Study] Sharing Innovative Practices in GMP Factory Construction and Building a New Modular Ecosystem

With the rapid development of the biopharmaceutical industry and the fast iteration of new drugs and processes, there is an urgent demand for flexible factory construction and modular cleanrooms. To address this industry trend and drive technological innovation, the Company’s subsidiary, BOTHX Advanced Manufacturing was invited to participate in the 2025 Annual Conference of the China Pharmaceutical Association of Plant Engineering (CPAPE).

At the Biopharmaceutical Technology Forum, the General Manager of BOTHX Advanced Manufacturing delivered a keynote speech, deeply sharing practical experience in constructing new modular GMP (Good Manufacturing Practice) factories. Drawing on the Company’s 30 years of industry accumulation, the presentation comprehensively introduced the “BOTHX Modular GMP Factory Solution”, demonstrating how modular technology can efectively accelerate product-to-market timelines, showcasing rapid response capabilities under GMP standards, and advocating the joint construction of a modular ecosystem to support collaborative upgrading across the industrial chain.

Data Security and Privacy Protection

BOTH firmly believes that data security and the protection of customer privacy constitute the cornerstones of sound corporate governance and are essential to earning stakeholder trust. We embed data security principles deeply into our business operations and corporate culture, extending this responsibility across the entire value chain, including employees and business partners. Through these eforts, we are committed to building a secure and trusted digita environment for all stakeholders, thereby supporting the Company’s long-term sustainable development.

The Company strictly complies with applicable laws and regulations, including the Cybersecurity Law of the People’s Republic of China, the Data Security Law of the People’s Republic of China, and the Personal Information Protection Law of the People’s Republic of China. We have established a comprehensive suite of internal policies and procedures, such as the Information System Operation and Maintenance Security Management Guidelines, Information System User Access Management Guidelines, and Confidentiality Management Regulations. These frameworks are continuously refined to strengthen data governance and ensure robust compliance management.

From the perspective of governance structure, BOTH has established a dedicated Process and IT Systems Management Department to coordinate all data security-related matters. This department is responsible for the overall planning, coordination, and implementation of data security governance. In 2025, the Company continued to advance its “BOTH Digital Blueprint”, developing a systematic, standardized, and professional data ecosystem. Through continuous upgrades to data security technologies and management practices, we further enhanced our capabilities in safeguarding data security and protecting customer privacy.

To strengthen data governance and security, BOTH has adopted a strategic management approach centered on “Compliance Assurance, Risk Protection, Business Development, and Value Realization.” Under this framework, the Company systematically advances its data security capabilities and builds a solid, resilient, and sustainable data security foundation. During the reporting period, the Company coordinated the development and continuous improvement of four core supporting systems: Management System, Technology System, Operational System, and Supervisory System. Through the integrated application of policy frameworks, technical safeguards, operational coordination, and oversight mechanisms, we ensure comprehensive coverage of data security requirements across the entire data lifecycle. Supported by these four pillars, BOTH is progressively achieving deeper integration between data security and business development. While efectively mitigating data security and compliance risks, we continue to unlock the value of data assets, thereby contributing to the Company’s high-quality development.

BOTH Data Security and Customer Privacy Protection: Risk Identification and Response

Data Security Management System

To effectively prevent data leakage and mitigate information security risks, BOTH adopts a multi-dimensiona approach to advancing data security and privacy protection. Our efforts cover key areas, including access control, system protection, third-party management, and employee awareness building, forming a comprehensive data security management mechanism that supports stable business operations and regulatory compliance.

BOTH Key Data Security Management Measures for 2025

The “BOTH Digital Blueprint” establishes an end-to-end management framework covering “assessment, governance, technology, operations, and oversight.” The framework begins with comprehensive data security assessments to identify the Company’s current security posture and key risk areas, laying a solid foundation for subsequent governance initiatives. Leveraging advanced technologies such as data encryption, access control, data anonymization, and firewalls, BOTH has developed a multi-layered and holistic data security defense system. This approach enables the Company to evolve its data security practices from basic compliance requirements toward business operations and value creation, ensuring the security of data assets while supporting resilient and stable operations.

In 2025, the Company further strengthened its digital platform by deploying and optimizing three management systems: the Warehouse Management System (WMS), Supplier Relationship Management (SRM) system, and System Applications & Products (SAP) ERP system. These systems facilitate centralized management and real-time monitoring of critical business data, significantly enhancing data governance capabilities and operational efficiency, and providing strong support for the Company’s digital transformation and high-quality development.

Data Security Capability Building

BOTH places strong emphasis on information security and data protection by continuously promoting awareness and delivering targeted training programs. These initiatives aim to enhance employees’ risk awareness and ensure that management requirements are fully understood and effectively implemented across the organization. During the reporting period, the Company established clear objectives for information security awareness programs and implemented a regular training mechanism to ensure comprehensive employee participation and adherence to relevant policies.

BOTH Data Security and Customer Privacy Protection Objectives

Progress by 2025

Employee coverage for information security awareness training: 100%

Achieved

In 2025, the Process and IT Systems Management Department organized quarterly thematic training sessions on information security. Leveraging the Beisen online learning platform, training content was delivered to all employees, achieving a 100% training coverage rate. Training topics were closely aligned with business practices and emerging trends, covering areas such as “Cybersecurity: The DeepSeek Perspective,” “Information Security: Opening the Box to Catch People,” and “The Proper Handling of Confidential Information.” These initiatives further standardized the acquisition, use, and transmission of sensitive information across the Company.

[Case Study] Data Security Training Program

In 2025, BOTH conducted a dedicated training program under the theme of “The Proper Handling of Confidential Information.” The program focused on standardized requirements throughout the lifecycle of sensitive information, including acquisition, usage, storage, and transmission. Through case studies and practical guidance, the training clearly defined employees’ responsibilities and compliance obligations in handling confidential information. This initiative strengthened employees’ ability to identify risks associated with sensitive information, reduced the likelihood of data leakage caused by improper handling, and furthe enhanced the standardization and controllability of confidential information management.

In 2025, BOTH did not experience any data breaches that resulted in significant operational losses. In addition, the Company recorded no incidents of non-compliance with data security and customer privacy protection laws and regulations that led to regulatory penalties.

Driving Industry Leadership Through Innovation

Technology R&D and Innovation

Innovation-driven development is the core engine of BOTH’s growth. We adopt the “Modular + BIM” dual-drive strategy, systematically enhancing engineering efficiency and quality through factory-based manufacturing and digital technologies. We are committed to transforming innovation outcomes into energy-saving, high-eficiency, and compliant solutions, working hand-in-hand with clients and partners to build a sustainable industrial future.

We closely integrate our R&D strategy into the overall corporate development strategy and strictly comply with national laws and regulations, including the Patent Law of the People’s Republic of China, Law of the People's Republic of China on Scientific and Technological Progress, and the Standardization Law of the People’s Republic of China, as well as relevant industry standards. Guided by the R&D philosophy of “Value-Oriented, Market-Driven”, we have formulated the R&D Management System to standardize the full process of project initiation, implementation, acceptance, and commercialization of results, ensuring that R&D topics align with the Company’s long-term planning and technical capabilities.

We have established a robust hierarchical management system to ensure efective leadership and oversight of our innovation strategy. At the strategic leadership and organizational level, the Board of Directors is responsible for top level design and supervision of the innovation strategy. As the core subsidiary for modular R&D, BOTHX Advanced Manufacturing’s General Manager reports directly to the Chairman, guaranteeing rapid response and execution of key R&D strategies. In 2025, we integrated Anhui YOOTH Engineering Co., Ltd. and oficially established the BOTH Design Institute, driving the business model transformation from traditional EPC (Engineering, Procurement, Construction) to integrated EPFC. At the functional division and process control level, we have built a multi-tie governance framework with clear accountability mechanisms.

BOTH R&D Governance System

Combining the internal and external environment in 2025 with the Company’s actual development situation, we comprehensively identified risks such as technological lag and overseas compliance risks, as well as opportunities including EPFC business transformation and global expansion. Based on this assessment, we formulated comprehensive response measures covering technological upgrades, system development, and overseas solutions.

2025 R&D Innovation Risks and Opportunities Identification and Management

Risk Management

Based on the assessment of industry opportunities and potential risks, we have established the “Modular + BIM” dual-drive R&D strategy, focusing on four key pillars: engineering modularization, functional modules, BIM technology application, and cleanroom products. We continuously promote the application of “Four New” technologies. In 2025, we concentrated on cleanroom modular innovation, deepened our self-developed BIM software ecosystem to elevate full-process digitalization, and, in alignment with our overseas strategy, developed modular overseas integrated solutions tailored for Southeast Asia and North America. We made breakthroughs in sea-transport logistics optimization, overseas material standard compliance, and construction organization adaptation to create internationally competitive, high-standard products. We also proactively benchmarked international standards (such as Malaysia’s restricted substance testing and energy-eficiency certification for electronic and electrical products) to develop low-carbon products meeting green control requirements.

Guided by its R&D strategy, the company focuses on modular process design, compliance capability development, and integrated software platform development, while constantly exploring cutting-edge technologies to drive the advancement of its R&D innovation and enhance the quality of its products and services.

Modular Technology Empowering Sustainable Value Creation

Process Design Technology

Green Layout & Compliance:

● Modularization and Resource Optimization: Modula layout based on client needs reduces space occupation through “functional zoning + logistics optimization”; standardized interface design supports flexible production line adjustment and future expansion, extending asset lifecycle.

● High-Standard Compliance & Risk Control: Strictly adhere to international pharmaceutical norms and

ISO Class 1–8 cleanroom grades; use diferentiated isolation technology to establish efective barriers and prevent cross-contamination at source.

Energy Efficiency Improvement & Low-Carbon Construction:

● Precise Environmental Control: Patent lightweight highstrength composite panels form modular cleanroom enclosures, achieving A-level cleanliness while enabling lightweight energy saving; integrated process flow and airflow organization design precisely controls environmental energy consumption and reduces operational carbon footprint.

● Integrated Delivery: Modular integration of process

equipment enables overall delivery of core production units, improving construction eficiency, shortening on-site timelines, and reducing construction waste and dust emissions.

Integrated Software Platform

Digital Governance & Intelligent Decision-Making:

● Intelligent Design for Cost and Eficiency: BIM + AI full-discipline collaborative design with AI algorithms optimizes module division and material utilization, increasing de-

sign eficiency by over 40% and reducing material redundancy and waste at the design source.

● Full-Process Traceability: Intelligent BOM system and quality traceability platform uses unique component coding for end-to-end data tracking from design to manufacturing, enhancing supply-chain transparency and quality management.

Digital Collaboration & Risk Avoidance:

● Virtual Pre-assembly Technology: Parametric family libraries and virtual pre-assembly identify and eliminate on-site conflicts in advance, significantly reducing rework rates and resource consumption to achieve lean construction.

In 2025, BOTH strategically focused on three core areas — engineering prefabricated modularization, functional products, and digital management — to continuously strengthen our technological innovation capabilities. In terms of R&D outcomes, we successfully implemented prefabricated applications such as modular plant rooms and electromechanical integrated ceilings, developed cleanroom environments and intelligent sterilization systems tailored for advanced medical manufacturing, and enhanced BIM model accuracy by introducing 3D laser scanning and standardized family libraries. As of the end of the reporting period, we have released and deployed 9 selfdeveloped BIM software modules, covering structural, MEP, cable tray, filter, and other specialized disciplines, along with plug-in management functions.

2025 R&D Achievements

NO.1

Over 100 patents and construction methods coverig modular enclosure structures,cleanroom systems, and automation technologies, including core innovations such as modular component levelling platforms and cleanroom composite panels.

NO.2

Participated in fommulating 13 industry standards and secured 7 copyrights in the BIM software domain.

We continue to attract high-calibre technical talent. The proportion of PhDs, Master’s degree holders, and senio engineers in our R&D team now exceeds 30%. In 2025, we recruited an additional 6 R&D personnel, including doctora and master’s graduates.

We actively strengthened our industry-academia-research system, conducting joint R&D on cleanroom sterilization technology with the Tsinghua University Wuxi Institute of Applied Technology and engaging in academic exchanges with Jiangnan University’s School of Internet of Things Engineering. We also joined multiple industry associations, including the CCUA Data Center Association and the China Semiconductor Industry Association, to deepen industry linkages and resource integration.

[Case Study] New Display Module Production Base Project —Digital Construction Application in High-Tech Plants

As a benchmark project in our cleanroom portfolio, this new display module production base spans over 50,000 m² and required completion of more than ten specialized systems (decoration, HVAC, gases, automation, etc.) plus partial retrofits within 300+ days, presenting dual challenges of system complexity and tight timelines.

We assembled a dedicated BIM team and deeply applied the latest BIM management platform across the entire project. Utilizing 3D modelling, clash detection, laser scanning, and BIM + AI technologies, we created a high-precision digital twin that achieved millimeter-level integration between the virtual model and the physical site. This approach not only provided stakeholders with intuitive visual design solutions and seamless design-construction linkage but also enabled real-time progress comparison and verification, ensuring traceability and control of schedule, quality, and environmental performance. Through digital rehearsal, the project efectively avoided construction conflicts, substantially reduced rework and material waste, and eliminated 40% of budget-overrun changes. While ensuring high-quality delivery, this initiative demonstrated the supportive role of digital technology in green and low-carbon development through source-level pollution and consumption reduction.

The project won the Second Prize in the 10th Jiangsu Province Installation Industry BIM Technology Application Competition.

BOTH 2025 R&D Targets and Performance

Intellectual Property Protection

At BOTH, intellectual property is not only a legal right but also a strategic asset that drives innovation and builds core competitiveness. We have established standardized management processes and incentive mechanisms to systematically convert employees’ innovative achievements into legally protected intellectual property.

We strictly comply with laws and regulations such as the Patent Law of the People’s Republic of China and the Trademark Law of the People’s Republic of China, and have formulated the Patent Management Regulations to standardize intellectual property protection. We have built a patent management architecture comprising the decision-making, review, and execution layers, and established a standardized process from idea collection and expert evaluation to application preparation. Through regular planning, rigorous screening of projects, and collaboration with external professional institutions, we achieve systematic patent mining and highly eficient process control.

BOTH Patent Management Architecture

Decision Approval Layer: Company Chief Engineer

● Responsible for approving the annual patent plan and the final project initiation list.

Organizational Execution Layer: Technology R&D and Management Center

● Coordinates the full process of planning, collection, screening, review organisation, and external liaison.

Technical Review Layer: Engineering Technology Committee

● Conducts professional evaluation and decision-making voting on patent concepts.

Implementation Collaboration Layer: Inventors and third-party patent agencies

● Responsible for technical solution refinement and professional application agency services.

BOTH Patent Management Process

Planning & Collection

● Formulate the plan in Q4 each year and complete idea collection before January of the following year.

● The Technology R&D and Management Centre prepares the annual plan, launches company-wide idea collection, and compiles the Annual Patent Concept List.

Evaluation & Initiation

● The Technology R&D and Management Centre conducts literature search and analysis.

● Organizes review meetings of the Engineering Technology Committee; the Chief Engineer finalises the patent concept list.

Preparation & Docking

● Organizes inventors to prepare the Patent Technology Disclosure.

● Facilitates discussion between inventors and third-party agents to determine the scope and form of protection.

We uphold the principle of honest business conduct and strictly adhere to the bottom line of not infringing on others’ intellectual property. We have built a comprehensive patent protection and risk control system. By appointing dedicated IP managers and collaborating with law firms and third-party institutions, we strengthen intellectual property analysis. For overseas operations, during the reporting period we conducted searches and analyses of 150 relevant patents to avoid R&D infringement risks and worked closely with customs departments to address declaration and clearance challenges. In addition, through the implementation of our points-based incentive system, we significantly increased the number of R&D proposals, driving 16 patent applications and 14 grants in 2025, exceeding the annual targets.

BOTH 2025 Patent Application Targets and Achievement

[Case Study] Green Technology Patent – Energy-Saving Cleanroom Air Conditioning System Based on Process Exhaust Recovery

BOTH is committed to driving energy conservation and emission reduction through technological innovation. In 2025, we independently developed the “Energy-Saving Cleanroom Air Conditioning System Based on Process Exhaust Recovery”. This technology breaks through the traditional bottleneck of high energy consumption in cleanroom air conditioning by optimizing airflow organization and using fan systems to recover process exhaust from clean workshops and recycle it into air handling units. The solution significantly reduces the energy load required for fresh air treatment without additional equipment investment, markedly improving overall system operating efficiency. The application of this patented technology will effectively lower energy consumption and carbon emissions during operation.

Building a Responsible Supply Chain

A sustainable supply chain is an extension of value co-creation. BOTH integrates Environmental, Social and Governance (ESG) principles into supplier onboarding, evaluation, and collaboration processes. We are committed to working alongside our partners to build a responsible, resilient, and value-driven supply chain ecosystem that delivers long-term sustainable value.

To support sustainable supply chain development, the Company has established a robust governance framework and institutional foundation. We have formulated and implemented a series of policies, including the Procurement Management Policy, Supplier Management Policy, and Labor Subcontracting and Specialized Engineering Services Subcontracting Management Guidelines. These policies standardize key processes such as supplier onboarding, evaluation, and auditing. The Company identifies and categorizes supply chain risks based on procurement value and business type, enabling differentiated risk management and ensuring that major procurement activities are conducted in full compliance with applicable requirements. This approach provides a solid institutional safeguard for supply chain stability and risk prevention.

BOTH has established a Supply Chain Management Committee as the core decision-making body for supply chain governance. The Committee is responsible for reviewing major business matters, deliberating on relevant policies, and overseeing annual evaluations. It is led by the General Manager, with participation from business unit heads as well as representatives from commercial audit and finance functions. Meetings are convened on an irregular basis as required. Under the leadership of the Committee, the Supply Chain Management Center is responsible for day-to day operations, covering procurement, materials management, logistics & customs, and trade functions. Through centralized procurement, standardized inventory management, on-site support, and end-to-end oversight, the Company continuously enhances the standardization and coordination of supply chain management.

Amid increasing volatility in raw material prices, evolving regulatory environments, and growing global uncertainties, BOTH systematically identifies and assesses supply chain-related risks. By strengthening policies and procedures, enhancing supplier management, and promoting localization strategies, the Company continuously improves supply chain resilience and risk resistance, ensuring stable business operations.

BOTH Supply Chain Management: Risk Identification and Response

Supplier Management

Aligned with project requirements and strategic development objectives, BOTH has established a full lifecycle supplie management mechanism covering supplier development, evaluation, classification, and ongoing monitoring During the supplier development stage, the procurement function actively identifies and develops potential suppliers based on project needs and supply chain security considerations. Qualified suppliers are selected through rigorous assessment processes and incorporated into a centralized supplier pool, laying the foundation for future collaboration.

At the supplier evaluation and onboarding stage, the Company conducts systematic risk assessments of prospective suppliers, focusing on key aspects such as business qualifications, operational credibility, and compliance status. Quality certification reviews are also performed on equipment and materials. BOTH evaluates suppliers based on the “Q.C.D.S.” principles—Quality, Cost, Delivery, and Service—while also recognizing international certifications such as ISO 14001 and ISO 45001 as value-added indicators. These certifications are closely monitored to encourage suppliers to continuously enhance their management practices. Based on annual evaluation results, suppliers are categorized and managed accordingly, and the outcomes are applied to subsequent procurement decisions to continuously optimize the supply chain structure.

In addition, the Company has established a supplier review and corrective action mechanism. For suppliers identifie with environmental or safety “red-line” issues, targeted investigations are conducted. Environmental and safety requirements are embedded into contractual terms to clearly define responsibilities and obligations. Through this end-to-end management approach, BOTH continuously enhances the safety, compliance, and sustainability of its supply chain.

Sustainable Supply Chain Development

As sustainability continues to gain strategic importance, BOTH regards sustainable supply chain management as a key lever for enhancing operational resilience and long-term value creation. Through ongoing policy updates and system optimization, the Company systematically integrates ESG requirements into its supply chain management framework. ESG factors are embedded into supplier onboarding and day-to-day management processes, with comprehensive assessments conducted across multiple dimensions, including labor rights, business ethics, quality and safety management, and environmental impact. While ensuring supplier quality and operational stability, these measures drive the supply chain toward greater compliance, transparency, and sustainability, reinforcing BOTH’s commitment to responsible business practices and long-term value creation

BOTH Supplier ESG Management System

Dimension	Specific Points
Quality Management	Requires suppliers to strictly adhere to relevant safety production requirements throughout the product manufacturing, storage, and transportation processes.Continuously safeguards the quality and safety of products and services during supplier on-boarding and collaboration through methods such as incoming inspections, quality incident tracking, on-site audits, and third-party certifications.In 2025, the Company strengthened its oversight of supplier quality certifications; a total of 675 suppliers obtained ISO 9001 Quality Management System certification, representing a 44% increase compared to 2024.
Environmental Protection	Incorporates environmental management requirements into contractual terms, explicitly mandating that suppliers comply with relevant environmental standards and product specifications regarding wastewater discharge and pollutant disposal.Embeds energy conservation and environmental protection requirements into procurement contracts.In 2025, the Company strengthened its oversight of supplier environmental management certifications; a total of 494 suppliers obtained ISO 14001 Environmental Management System certification, representing a 48% increase compared to 2024.

In advancing a sustainable supply chain, BOTH continues to promote resource efficiency and green procurement practices. In contracts signed with subcontractors, the Company sets clear material loss control targets for ke construction materials, requiring subcontractors to maintain material loss rates within specified thresholds during project execution. Through stringent material management measures, we effectively reduce resource waste and improve material utilization eficiency.

At the same time, energy conservation and environmental protection requirements are systematically embedded into procurement processes. The majority of projects incorporate relevant environmental clauses into contracts, with priority given to equipment that meets high energy-efficiency standards. In selected projects, BOTH adopts energy-eficient equipment such as IE4 or Class 2 energy-eficient systems. These eforts ensure project quality and operational performance while reducing energy consumption and environmental impact, driving the supply chain toward a greener and lower-carbon future.

Local Procurement

As BOTH continues to expand into international markets, local procurement has become a key strategy for enhancing supply chain resilience and operational efficiency. The Company actively establishes longterm partnerships with local suppliers in regions where it operates and continuously strengthens its multi-regional supplier network. Our supplier network spans multiple countries and regions, including Thailand, Vietnam, and Malaysia, enabling us to respond more efficiently to project needs and meet customized client requirements.

Through local procurement, BOTH shortens supply chain response time and significantly reduces crossborder logistics and transportation costs. This not only enhances material supply efficiency and cost control capabilities but also contributes to local economic development and job creation. In addition, environmental considerations are incorporated into local procurement practices. By minimizing longdistance transportation, the Company reduces associated carbon emissions and ecological impacts, achieving a balanced advancement of economic performance, social value, and environmental responsibility.

Fair Treatment of Small and Medium-sized Enterprises

BOTH places strong emphasis on fair treatment and mutually beneficial cooperation with small and medium-sized enterprises (SMEs). The Company strictly complies with applicable laws and regulations, including the Law of the People’s Republic of China on Promotion of Small and Medium-sized Enterprises (SMEs) and the Regulation on Ensuring Payment for Small and Medium-sized Enterprises, and has established a series of management policies and practices to safeguard the legitimate rights and interests of SMEs.

Guided by the principles of openness, inclusiveness, and fairness, BOTH ensures equal treatment of SME partners across supply chain management and business collaboration. To mitigate risks related to subcontractor fund allocation and wage payments, the Company conducted continuous monitoring of subcontractors’ payroll disbursement and overall financial conditions in 2025. Leveraging the Labor Management System (LMS), attendance records and payable wage data generated by the system are cross-checked against actual wage payments made to work teams. This process enables the identification of potential wage arrears risks, supports timely risk alerts and corrective actions, and effectively safeguards workers’ rights while promoting the stable and sustainable development of SME partners.

The Company adheres to fair contracting practices by avoiding unreasonable payment terms or overly stringent conditions in agreements with SMEs. BOTH ensures open access for SMEs to participate in procurement and subcontracting opportunities across the supply chain, conducting supplier selection and business allocation in a transparent and equitable manner. At the same time, the Company strictly fulfills its contractual obligations by making timely and full payments for goods and services, avoiding delayed payments and alleviating financial pressure on SMEs, thereby supporting their operational stability.

Furthermore, BOTH is committed to collaborative growth with SMEs. The Company has developed and implemented the “Cooperation Development Plan of Labor Contractors (CODEL)” program, aimed at fostering long-term value creation with labor contractors. Through ongoing communication during project collaboration, BOTH provides timely feedback on service quality and performance improvements, supporting continuous capability enhancement among partners, including SMEs. While ensuring product and service quality, the Company also provides appropriate support to SME suppliers in selected commercial negotiations, ofering them greater opportunities for collaboration. These eforts contribute to building a stable, inclusive, and mutually beneficial supply chain ecosystem.

Employee Development and Well-being

BOTH regards “caring for employees” as a cornerstone of its long-term development. We have established a comprehensive management framework that spans from governance philosophy to day-to-day employee care. Supported by a multi-tiered benefits and well-being system, we strive to enhance employees’ sense of belonging and overall well-being, while fostering a truly diverse, equitable, and inclusive workplace.

Diversity, Equity and Inclusion

Caring for employees is a core mission of BOTH and a fundamental driver of long-term value creation. We are committed to building an inclusive workplace grounded in fairness and equality. Guided by our people philosophy of empowering individuals to grow in capability and perspective, we continuously invest in employee development and career advancement, unlocking the full potential and creativity of our workforce.

The Company has established a systematic human resources management framework centered on the Human Resources Management Policy and supported by a Human Resources Development Committee, which oversees key decisions related to talent development. The Organization and Human Resources Center is responsible for formulating and implementing policies and plans related to recruitment, talent allocation, training, and development. Business units and subsidiaries execute these initiatives in alignment with unified corporate policies, forming a well-defined and highly coordinated human resources management system.

As BOTH advances its high-quality development strategy, the stability and sustainability of human capital remain critical to long-term business performance. Talent retention in key roles and the availability of qualified talent pipelines directly impact operational eficiency, cost management, and core competitiveness.

BOTH Human Capital Management: Risk Identification and Response

Employment and Human Rights Protection

BOTH adheres to internationally recognized human rights and labor standards, including the United Nations Guiding Principles on Business and Human Rights (UNGPs) and the core conventions of the International Labour Organization (ILO). The Company strictly complies with applicable labor laws and regulations in all jurisdictions where it operates, including the Labor Law of the People’s Republic of China and the Labor Contract Law of the People’s Republi of China. We integrate human rights and labor protection requirements throughout our operations and value chain, safeguarding the legitimate rights and interests of employees, workers within our supply chain, and othe stakeholders. BOTH is committed to fostering a workplace that is fair, open, diverse, and inclusive.

The Company has implemented the Recruitment Management Policy, adhering to principles of legality, compliance, fairness, and merit-based selection. We respect diversity across race, color, nationality, ethnicity, political afiliation, gender, religious belief, and other attributes, and strictly prohibit child labor and forced labor.

During the reporting period, BOTH reported no incidents involving child labor, forced labor, violations of employee rights, or labor disputes.

BOTH Labor and Human Rights Policies

Anti-Discrimination

■ The Company strictly prohibits any form of discriminatory language or behavior based on nationality, skin color, ethnicity, age, gender, marital status, physical health, or disability.

Anti-Harassment

■ The Company strictly prohibits any form of harassment, including actions conducted against an individual’s will through verbal, written, visual, or physical means, covering both sexual and non-sexual harassment.

Prohibition of Child Labor

■ The Company explicitly stipulates in its Human Resources Management Policy that only individuals aged 18 and above may be employed, thereby eliminating the risk of child labor.

■ During the recruitment and hiring process, the Company conducts multi-stage, and end-to-end verification of candidates’ age and identity information.

Prohibition of Forced Labor

■ The Company fully respects employees’ nationality, household registration, ethnicity, political afiliation, gender, and religious beliefs, and strictly prohibits any form of forced labor. Any form of coercion, intimidation, or physical abuse is not tolerated.

Freedom of Association and Collective Bargaining

■ The Company respects and safeguards employees’ rights to freedom of association and collective bargaining. Trade unions are established in accordance with applicable laws, and employees are supported in participating in company management. The Company ensures employees’ rights to information, participation, expression, and supervision.

The company attaches great importance to employee management and the protection of human rights. We place strong emphasis on fair and compliant employment practices, guided by principles such as compliance, efficiency, fairness, merit-based selection, conflict-of-interest avoidance, and role suitability. Recruitment, hiring, and termination processes are conducted in strict accordance with applicable laws and regulations, ensuring a transparent, standardized, and orderly employment environment.

BOTH Recruitment Process

In 2025, the Company continued to attract talent through diversified channels, including online recruitment, employee referrals, job fairs, and campus recruitment. Flexible employment opportunities were also created through re-employment of retirees and internship programs. As of the end of the reporting period, BOTH employed a total of 1,209 employees, providing a solid human capital foundation for stable operations.

The Company has established a standardized re-employment mechanism for retirees. During the reporting period, four retired professionals were rehired, enabling the Company to leverage experienced talent while maintaining compliant employment practices.

BOTH Employee Structure

Workforce Diversity and Inclusion

BOTH respects and values diversity among its employees and is committed to creating a workplace free from barriers, discrimination, and harassment. Diversity and inclusion are embedded within the Company’s governance framework and promoted across global operations. We ensure that employees are treated fairly in recruitment, employment, and career development, regardless of gender, age, nationality, religion, ethnicity, or marital status.

The Company actively engages employees through forums and well-being initiatives to understand the needs of diverse groups and enhance workforce cohesion and inclusion. In addition, BOTH promotes cross-cultural communication through targeted training programs. In overseas operations, we fully respect local cultures and religious practices, and provide pre-departure training for expatriate employees covering language, cultural norms, and workplace behavior, enabling them to integrate efectively into local environments.

Employee Benefits and Well-being

BOTH is committed to a people-oriented development philosophy, with employee well-being as a core component of its corporate culture. We continuously focus on employees’ physical and mental health, as well as their evolving needs. We also organize a variety of employee care initiatives and recreational activities to create a positive and supportive work environment, enhancing employee engagement and satisfaction while promoting shared growth between the Company and its workforce.

The Company provides a comprehensive benefits system covering all employees, including timely and full salary payments, statutory social insurance and housing fund contributions, as well as additional benefits such as housing allowances, communication subsidies, annual health check-ups, paid leave, and holiday benefits. The Company wil continue to enhance and refine its employee benefits framework, creating a supportive and inclusive workplace that promotes well-being, engagement, and long-term development.

BOTH Employee Benefits System

Types	Specific Points
Employee Well-being	Leave Benefits: In addition to statutory public holidays, the Company provides paid annual leave, marriage leave, maternity leave, paternity leave, childcare leave, and other forms of leave.Employee Engagement Activities: Regularly organize cultural, recreational, and sports activities for employees.Holiday Benefits: The Company provides festive gifts for major holidays, such as the Spring Festival, Mid-Autumn Festival, and National Day.Allowances and Subsidies: A range of subsidies are offered, including meal allowances, communication subsidies, housing allowances, and transportation subsidies.
Employee Development	Training System: The Company implements various training programs, including campus recruitment training, as well as internal learning platforms such as the BOTH Home and BOTH Knowledge Base.Skills Development: Employees are encouraged to obtain professional qualification certifications to enhance their capabilities.
Employee Healthcare	Employee Insurance: The Company provides statutory social insurance and housing provident fund contributions for all employees.Annual Health Check-ups: Regular health examinations are organized annually for employees.

BOTH is committed to fostering an equitable and inclusive environment for female employees, ensuring equal opportunities in career development, including roles in engineering R&D, and management. We uphold gender equality in compensation, benefits, and resource allocation. The Company strictly implements statutory protections related to maternity and childcare and continuously enhances support measures for female employees, including dedicated initiatives such as International Women’s Day activities.

In addition, the Company organizes regular employee engagement programs, including birthday celebrations, discounts on professional certification training, complimentary park access cards, and reimbursement of travel expenses for home visits. BOTH conveys organizational care during key festivals and commemorative occasions. For example, on Teachers’ Day, appreciation letters are sent to employees who contribute to mentoring and internal training, fostering a corporate culture that values talent and demonstrates genuine care for employees.

Mid-Autumn Festival Employee Care Initiative

To further enhance employee well-being and organizational cohesion, BOTH integrates employee benefits and humancentered care into its daily management and corporate culture. In 2025, to celebrate the Mid-Autumn Festival, the Company organized an employee care initiative, providing thoughtfully prepared mooncake gift packages to all employees. This initiative conveyed festive greetings and demonstrated the Company’s appreciation and care for its workforce, fostering a sense of belonging and cultural connection.

Cross-cultural Training for Overseas Talent

To support the steady development of its international operations and improve cross-regional collaboration, BOTH systematically advanced a cross-cultural training program for overseas talent in 2025. The program focused on key topics such as cross-cultural communication and cultural awareness, helping employees from different countries and regions enhance mutual understanding and teamwork.

Prior to overseas assignments, the Company provides dedicated training programs for expatriate employees. These programs cover essential areas including basic language skills, local lifestyles, social customs, workplace behavior, and compliance requirements. In addition, BOTH provides an Overseas Guidance Manual, which includes general guidance for working and living abroad, as well as country-specific sections for regions such as Vietnam, Thailand, and Malaysia. It ofers practical insights into local cultural characteristics and behavioral norms— for example, personal safety and trafic considerations, as well as cultural etiquette and taboos in Thailand—helping expatriates quickly adapt to local environments and integrate smoothly into overseas work and daily life.

Incentive Compensation System

BOTH has established and implemented a structured compensation and benefits system under the Compensation and Benefits Management Regulation. The system is built on job value, performance evaluation, and individual contribution, closely linking employee compensation with organizational objectives. Compensation structures are benchmarked against industry and regional market levels to ensure competitiveness and stability, while aligning employee rewards with performance and contribution.

To further enhance employee motivation and behavioral guidance, the Company introduced the Points Management Policy (Trial) in 2025, establishing a comprehensive evaluation system that combines positive incentives with continuous improvement feedback. The system covers standardized processes including submission, evaluation, approval, disclosure, appeals, and redemption, ensuring transparency and compliance. Through this mechanism, employees’ contributions beyond their core responsibilities and their overall professional conduct are recognized through a points-based system, which accumulates on a monthly and annual basis and is linked to tangible rewards. Positive points incentivize behaviors that contribute to long-term value creation, such as knowledge sharing, management innovation, business collaboration, risk control, and reputation enhancement. Negative points serve as early warnings for non-compliant behavior, promoting continuous improvement and strengthening organizational performance.

In addition, BOTH continues to refine diversified incentive mechanisms, including performance-based rewards and equity incentives, to strengthen motivation and retention of key talent. In June 2025, the Company granted a reserved portion of restricted shares under the “2024 Restricted Stock Incentive Plan” to 27 mid-level managers and core employees, totaling 801,564 shares. This brought the cumulative grant ratio to 98.02% of the total plan, efectively stimulating employees’ intrinsic motivation to create value and aligning individual development with the Company’s long-term strategic objectives.

BOTH Employee Incentive Compensation System

Incentive Mechanism	Specific Points
Employee Well-being	■ Salary: Determined based on factors such as industry qualifications, professional capabilities, work experience, and value creation. Salary levels are adjusted through annual performance evaluations and corresponding promotions.■ Annual Bonuses: Includes performance-based bonuses and year-end bonuses, awarded based on annual performance evaluations for both management and employees.■ Special Incentives: Covers performance target bonuses, project performance bonuses, market performance bonuses, and annual excellence awards.■ Points-based Incentive Mechanism: Employees’ contributions and overall professional conduct are evaluated through a points system, which accumulates over time and is linked to tangible rewards.
Medium- to Long-term Incentives	■ Restricted share incentive plans are implemented for senior management, mid-level managers, and key employees.

Occupational Health and Safety

Safeguarding the life and health of every employee is an unwavering core value at BOTH. We are committed to becoming a benchmark in safety management within our industry. This commitment drives us not only to pursue a “zero harm” objective, but also to integrate occupational health considerations into every aspect of our daily operations. Through systematic and standardized management practices, we aim to provide robust protection for the health and safety of our employees and partners, while supporting the Company’s sustainable development.

Safety Management System

BOTH places strong emphasis on occupational health management and strictly complies with applicable laws, regulations, and standards, including the Prevention and Control of Occupational Diseases Law of the People's Republic of China, the Law of the People’s Republic of China on the Prevention and Treatment of Infectious Diseases, National Occupational Health Standards of the People’s Republic of China, and relevant national occupational health standards. The Company has established and implemented internal policies such as the Occupational Health Management Policy and the Quality, Environment, and Occupational Health and Safety Management Manual, and has obtained ISO 45001 certification. These frameworks provide a solid foundation for systematic and standardized Occupational Health and Safety management.

BOTH Occupational Health and Safety Management System

BOTH Safety Management: Risk Identification and Response

Safety Risk Management

BOTH adheres to the principle of “life first” and integrates safety responsibilities throughout all aspects of its operations. By continuously strengthening operational safety management, the Company ensures standardized and orderly work processes, supporting the safe, stable, and reliable delivery of projects.

With risk prevention at its core, BOTH has established a series of policies, including the Safety Standardization Manual, Safety Management Control Modules, and Construction Personnel Management Guidelines, to standardize key safety processes and control requirements across the entire value chain, including subcontractors and contractors.

In 2021, the Company launched the “Build Fence on Clif (BUFOC)” safety initiative as a long-term strategic program. Under the leadership of the Safety Management Committee, this initiative systematically addresses foundational and execution-related challenges in safety management. Key measures include optimizing the EHS organizational structure, establishing standardized risk identification and work permit procedures, implementing a three-tier risk control mechanism (red, orange, yellow), conducting tiered training and thematic safety activities, and strengthening subcontractor evaluation and incentive systems. BUFOC has evolved into a core mechanism for Occupational Health and Safety management at BOTH, characterized by an expanded team of dedicated safety personnel, 100% training coverage, and an efective closed-loop risk management system, reinforcing the Company’s commitment to “life first and controllable safety.”

Building on this foundation, BOTH has developed the “12345” safety management model. Through measures such as work permits, pre-task planning, and hazard identification, the Company strengthens risk anticipation and process control. A risk matrix methodology (LS approach) is applied to classify and manage potential risks in a systematic and scientific manner.

BOTH “12345” safety management model

■ Risk Management and Control Process

■ Process Control Stage: Proactive Risk Prevention

■ Outcome Control Stage: Implementation of Hazard Remediation

■ PTW \*

■ PTP \*

■ Hazard Identification

■ Construction Planning

■ Risk Identification and Confirmation

■ Safety Risks

■ Briefing on Safety Measures

■ Work Environment

■ Work Tools

■ Work Facilities

■ Supervision and Inspection ■ Personnel Skills

\*PTW: Permit to Work, referring to a written safety permit that must be obtained through application, approval, and issuance procedures before high-risk operations can be carried out.

\*PTP: Permit to Prepare, a prerequisite procedure for work permit issuance, referring to the approval and authorization of various preparatory work for work before the formal issuance of PTW.

The Company continues to enhance its safety management model through digitalization. The “Risk Operations Mapping System” has been developed and deployed to support the application of the “12345” model in risk identification and closed-loop governance. This system tracks risks dynamically across the entire project lifecycle, using a timeline-based approach to identify and monitor risk points. Automated alerts ensure the timely implementation of safety measures at critical stages, while high-risk operations require real-time photo documentation. This enables visualization and traceability of risk management processes, significantly improving proactive risk identification and dynamic control capabilities.

In addition, BOTH has implemented the Project Safety Audit Management Policy and conducts regular independen third-party safety audits. In 2025, a total of seven third-party safety audits were completed.

During the reporting period, the Company achieved strong safety performance, with no major safety incidents and no work-related fatalities.

Workplace Safety

BOTH ensures adequate safety stafing in accordance with the Safety Production Organization Management Policy, allocating dedicated safety personnel based on project scale and operational needs. The Company currently employs 91 full-time safety professionals, representing 7.5% of the total workforce, providing strong organizational support for safety management. Subcontractor safety personnel are integrated into project safety management teams and managed under a unified framework. Mechanisms such as safety training programs, registration systems, and responsibility briefings further strengthen coordination and accountability.

Senior management and business unit leaders regularly conduct on-site safety inspections to ensure strict compliance with safety standards. Responsibility areas are clearly defined, with dedicated safety officers conducting routine inspections and hazard identification to proactively manage risks at the source.

During daily inspections, safety personnel focus on high-risk operations, equipment performance, and the use of personal protective equipment (PPE). Identified issues are recorded and analyzed through a centralized management platform, forming a repository of typical cases and potential hazards. These cases are incorporated into internal training materials and shared across projects, enabling employees to learn from real scenarios and continuousl enhance safety awareness, thereby establishing a closed-loop safety management system.

For high-risk activities such as lifting operations, working at height, and confined space operations, BOTH has developed a modular and standardized safety control system. The Safety Management Control Modules define technical standards and operational requirements for each type of high-risk activity, providing clear, actionable, and enforceable guidance to ensure safe and eficient execution.

In terms of contractor safety management, BOTH has established a comprehensive framework covering multiple stakeholders and processes. Policies such as the Subcontractor Safety Incentive and Penalty Guidelines, Labo Contractor Safety Management Agreement, and Construction Personnel Management Guidelines define safety standards and responsibilities. The Company has developed an integrated contractor safety management system covering governance, execution, technical controls, and financial mechanisms, forming a robust and multi dimensional safety control framework.

BOTH Subcontractor and Contractor Safety Management System

■ Strengthen construction safety management through regular inspections, operational supervision, training, and corrective action tracking.

■ Clearly define subcontractors’ safety responsibilities in subcontract agreements, requiring the provision of complete safety management documentation.

■ Develop and implement the Project Subcontractor Onboarding and Registration Manual to standardize entry procedures and require subcontractors to obtain personnel accident insurance.

■ Mandate dedicated safety investment in accordance with contractual requirements.

■ Systematically identify and summarize key safety control modules covering high-risk operations such as ceiling installation, lifting, and working at height; Provide regular management guidance and technical support to subcontractors to enhance their safety management capabilities.

To reinforce its safety commitment, BOTH conducted systematic safety education and practical activities throughout 2025. These initiatives covered construction operations, on-site activities, and daily operations, enhancing employees’ ability to identify and manage safety risks through training, inspections, and emergency drills.

Safety Awareness Campaigns

In 2025, under the theme of “Everyone Values Safety, Everyone Is Prepared for Emergencies” during the National Safety Production Month, BOTH prioritized fire safety drills across its headquarters and project sites. These drills efectively enhanced employees’ emergency response capabilities and strengthened the Company’s fire safety management foundation.

In addition, targeted safety training programs such as traffic safety and dormitory safety were introduced to address key risk scenarios. Based on identified issues during dormitory safety inspections, dedicated training sessions were conducted to reinforce fire safety awareness for employees residing in Wuxi, including maintaining clear evacuation routes, ensuring the proper condition of fire safety equipment and preventing behaviors such as occupying or blocking fire escape routes.

BOTH 柏诚系统科技股份有限公司交通安全培训

柏诚股份EHS管理部

Trafic Safety Training

Occupational Health

BOTH closely monitors the impact of evolving business models on Occupational Health and Safety. The Company systematically identifies and assesses key occupational hazards, including noise, dust, and high temperatures. Based on these assessments, BOTH continuously optimizes protective measures and management mechanisms to mitigate occupational health risks, ensuring the physical and mental well-being of employees as well as safe working conditions.

During the reporting period, no cases of occupational diseases were reported among employees

BOTH Occupational Disease Prevention and Control Management Process

Occupational Hazard Identification and Role Definition

■ Identify key occupational hazard factors present in operations

■ Define afected job roles and personnel scope

Occupational Health Monitoring and Records Management

■ Establish clear responsibilities, procedures, and monitoring cycles for occupational health management

■ Conduct regular occupational health examinations and maintain comprehensive health records

Hazard Communication and Protection Management

■ Conduct hazard communication, training, and awareness programs

■ Provide and standardize the management of occupational protection facilities and personal protective equipment (PPE)

To efectively identify and mitigate occupational health risks, BOTH implements a systematic management approach focused on key occupational hazards. Based on the specific risk characteristics of different work scenarios, the Company develops and enforces targeted protective measures. By strengthening personal protective measures, enhancing workplace environment management, and implementing heat stress prevention initiatives, BOTH continuously reduces the impact of occupational hazards such as dust, noise, and high temperatures, thereby safeguarding employees’ occupational health and ensuring safe working conditions.

BOTH Occupational Health Factors: Risk Identification and Response

Employee Training and Development

BOTH regards employee development as a key driver of innovation and sustainable growth. We have established a systematic training and development framework that covers all employees throughout their career lifecycle. Through diversified training programs and structured mentoring mechanisms, we unlock individual potential and build a strong and sustainable talent pipeline to support the Company’s long-term development.

Employee Training System

Guided by the principles of being strategic, comprehensive, flexible, and tailored to individual needs, BOTH has implemented the Training Management Policy and Performance Evaluation Regulation. With a forward-looking approach, we have established a structured talent identification and development mechanism to continuously strengthen talent cultivation and succession planning. The Organization and Human Resources Center coordinates training initiatives in alignment with the Company’s development strategy, available resources, and training plans across departments, business units, and subsidiaries. Targeted training programs are systematically delivered to employees at diferent levels, providing strong talent support for the achievement of strategic objectives.

The Company’s training system encompasses three core areas: knowledge-based training, skills development, and competency enhancement. A dedicated and experienced training team is responsible for program design, implementation, and operational management. Through a structured and continuously optimized training mechanism, BOTH enhances employees’ professional capabilities and core competencies, while building a resilient talent pipeline and strengthening overall organizational capability.

BOTH Employee Training System

	Training Objectives	Training Approach
New Employee Onboarding Training	To help new employees systematically understand the Company's fundamentals, policies, and organizational structure, enabling them to integrate into the corporate culture and adapt to job requirements.	Includes general orientation and role-specific training, delivered through classroom sessions, policy briefings, corporate communications, and mandatory onboarding courses.
On-the-job and Skills Enhancement Training	To strengthen employees' professional skills and role competency, ensuring they possess the required knowledge and capabilities prior to job rotation, probation, role transition, or promotion.	Combines on-the-job training, internally developed courses, and external professional programs, with both mandatory and phased learning modules.
Work Efficiency and Management Effectiveness Training	To enhance employees' work efficiency, time management, and self-management capabilities, strengthen cross-functional collaboration and overall execution, and support their career development.	Delivered through a combination of mandatory training and elective courses selected by employees.
Project Management Training	To enhance project management capabilities in planning, execution, delivery, and risk control, supporting the development of a project management talent pipeline.	Structured by role category and job level, with tiered courses delivered through both internal and external training programs.
Leadership Development Training	To cultivate leadership capabilities, including team management and decision-making skills, supporting the development of management talent.	Participants are selected based on talent reviews and performance evaluations, with training delivered through a mix of internally developed and external programs, alongside self-initiated learning opportunities.
Professional Certification Training	To support employees in obtaining professional certifications relevant to the Company's core business, enhancing technical expertise.	Delivered through intensive training sessions, pre-exam preparation courses, and external certification programs, with participation requirements defined by the Company.

Talent Development

To support high-quality development and strengthen long-term competitiveness, BOTH continues to enhance a multi level and comprehensive talent development system. Key focus areas include leadership capability development, professional expertise accumulation, and talent pipeline building. In 2025, the Company launched an Executive EMBA development program for core management roles. Eight key management personnel were selected to participate in one-year external training programs at leading institutions, including Shanghai Jiao Tong University and Fudan University. These programs introduced advanced business management concepts and practical management tools, further enhancing the strategic decision-making and leadership capabilities of the management team.

BOTH also continues to strengthen knowledge management and learning platforms. The Company has established unified knowledge-sharing and training platforms, including internal systems such as the BOTH Home and BOTH Knowledge Base. These platforms integrate professional expertise, system operation guidelines, corporate policies, and training resources across departments, promoting knowledge sharing and experience accumulation while enabling employees to eficiently access information and improve collaboration and execution capabilities.

In addition, BOTH has implemented a structured mentoring system that integrates knowledge transfer, guidance, and hands-on coaching. Core internal professionals serve as mentors, supported by empowerment training, dynamic management, and regular evaluations, along with mentoring allowances and dedicated incentive mechanisms, to steadily advance the development of professional talent. In addition, the Company supports employees in obtaining professional qualifications by providing examination assistance and related subsidies, encouraging continuous skill enhancement and strengthening the development of specialized teams, thereby contributing to ongoing improvements in the Company’s overall technical capabilities and project execution eficiency.

In 2025, BOTH conducted a total of 222 training sessions, achieving a 100% employee coverage rate, with total annual training investment reaching 85.85 thousand RMB.

2025 Campus Recruitment Onboarding Program

To enhance new hires’ understanding of the Company’s culture and working environment, and to support their rapid integration into the organization, BOTH organized a campus recruitment onboarding program in 2025 under the theme “Growing with the Future, Empowering the Young.” The program was systematically designed around corporate culture inheritance and the development of young talent. Key training modules included corporate culture and values, city orientation under the theme of “Discovering Wuxi,” foundational engineering and technical capabilities, in-depth introductions to core business functions, and professional skills development. These initiatives enabled new employees to gain a comprehensive understanding of the Company’s development history, strategic direction, and business landscape. Through this program, BOTH facilitates a smooth transition from campus to the workplace for new graduates, while strengthening its talent pipeline and supporting long-term organizational development.

Career Development and Promotion

BOTH adheres to principles of openness, fairness, and transparency in employee promotion and career development. The Company continuously improves its multi-track career development system, enabling employees to pursue development paths aligned with their capabilities and career aspirations. Through a structured and standardized promotion process, BOTH ensures that high-potential and high-performing employees are identified in a timely manner and provided with appropriate career advancement opportunities, fostering a positive interaction between individual growth and organizational development.

To support an efficient and well-structured work environment, the Company has implemented the Performance Evaluation Regulation, which clearly defines the processes, criteria, and implementation guidelines for employee performance assessment and promotion, ensuring the standardization and transparency of the promotion mechanism. Guided by principles such as hierarchical management, timely communication, objectivity and fairness and integrity-based evaluation, BOTH aligns talent management with strategic priorities, business needs, and role specific requirements. Through a role-fit approach, the Company efectively plans employees’ career development pathways, fully leveraging individual strengths and potential, and accelerating talent development to support high quality corporate growth.

Talent review is a systematic process for evaluating the Company’s human capital. BOTH conducts annual talent review initiatives, assessing employees across two key dimensions: capability and performance. This process provides a comprehensive understanding of employees’ competencies, performance, and development potential, while enabling data-driven analysis of talent structure and role alignment for decision-making to support optimized human resource allocation.

The General Manager serves as the head of the talent review committee, overseeing the implementation process, reviewing outcomes, and guiding the application of results. Findings from talent reviews are systematically applied to key processes, including talent development, promotions, compensation adjustments, and succession planning. Through feedback sessions, individual development plan (IDP), and performance improvement plan (PIP), BOTH supports continuous employee development and capability enhancement, laying a solid foundation for achieving strategic objectives and long-term stability.

2025 Project Manager Certification Program

In 2025, BOTH continued to implement its Project Manager Certification Program as a key mechanism for the selection, appointment, and promotion of project management personnel. The program supports the development of a structured and tiered talent system, enabling efective talent-role alignment and fostering mutual growth between employees and the organization.

In February 2025, the Organization and Human Resources Center led the certification process, with candidates nominated by business units and subsidiaries and subject to preliminary review. A total of 27 candidates participated in the assessment. Following evaluation by an expert review panel and approval by the General Manager, 7 candidates were certified as Project Managers, and an additional 7 were certified as Associate Project Managers.

Promoting a Sustainable Future

Support Community Development

BOTH firmly believes that sustainable corporate development is inseparable from community prosperity. We deeply integrate our core business operations into community development, creating shared value globally by promoting local sourcing and prioritizing the hiring of local employees. Based on this, we actively respond to social needs and fulfill our corporate social responsibility through philanthropic initiatives.

Community Communication and Development

Adhering to the philosophy of "integration into the local community and collaborative development," the Company promotes communication and development between its operating locations and the surrounding communities, striving to be an outstanding corporate citizen and achieve mutual benefit and win-win results with the communities in which it operates. In terms of economic development, the company actively implements a localized procurement strategy, transforming business growth into a direct driving force for community economic prosperity and efectively promoting the common growth of the local supply chain. During the reporting period, the company's overseas branches achieved significant results in local procurement, with local procurement accounting for 56% in Vietnam, 17% in Malaysia, and 6% in Thailand. At the same time, the company highly values people's well-being, prioritizing the recruitment of local employees in its overseas branches. In 2025, local employees accounted for 36.17% of the total workforce in overseas subsidiaries, actively creating high-quality employment opportunities for local communities and efectively alleviating local employment pressure.

Rural Revitalization and Public Welfare Activities

Rooted in the local community, BOTH adheres to the social responsibility philosophy of "originating from society and giving back to society," and strictly abides by laws and regulations including the Charity Law of the People's Republic of China and the Public Welfare Donations Law of the People's Republic of China. We are committed to closely integrating business growth with regional prosperity, actively participating in rural revitalization and public welfare undertakings, encouraging employees to engage in volunteer services, and promoting the symbiotic and prosperous development of the company and the community.

In 2025, the Company continued to deepen its public welfare initiatives, focusing on multiple areas including charitable agricultural assistance and community care. Regarding philanthropy, the Company actively supported the development of Liyuan Street in Binhu District, Wuxi City, donating RMB 900,000 to participate in the establishment of the "Liyuan Enjoying Meals" Elderly Assistance Fund. This fund, managed by the Liyuan Branch of the Wuxi Binhu District Charity Foundation, is planned to be implemented over three years from 2025 to 2027, specifically for providing meal assistance services to the elderly in the area, improving their quality of life, and giving back to society.

In terms of rural revitalization, the Company responds to the national call and implements consumption-based poverty alleviation. When purchasing agricultural products for employee welfare, we prioritize local seasonal high quality agricultural products such as Yangshan peaches, combining employee care with support for increasing farmers' income and driving local agricultural economic development. Meanwhile, in 2025, the Company actively explored ecological agriculture support models, adopting a rice-growing area in the Taihu Lake region of Jiangsu Province. This area uses high-quality, non-hybrid rice varieties and promotes the application of organic fertilizers, thus optimizing and improving the local agricultural production system.

The Company supports employees in participating in various volunteer activities. In 2025, our employees participated in a voluntary blood donation drive at the Wuxi Central Blood Station, spreading love through their blood and fulfilling their social responsibility through concrete actions.

Establishing a Robust, Transparent, and Trustworthy Governance System

Corporate Governance Investor Relations Management Compliance and Risk Management Anti-Corruption and Business Integrity

Corporate Governance

BOTH identifies excellent corporate governance as the cornerstone of its sustainable development. The Company continuously optimizes its scientific governance framework, centered on the General Meeting of Shareholders, the Board of Directors, and their specialized committees, ensuring a clear definition of powers and responsibilities alongside standardized operations. The Board attaches great importance to the continuous enhancement of governance standards, deeply integrating sustainability principles into strategic decision-making and daily operations. Through the establishment of the Strategic Business Development Center and the diversification of Board composition, the Company has significantly bolstered the foresight and scientific rigor of its decision-making, further strengthening strategic leadership and business synergy.

Governance Structure

The Company regards standardized governance as the fundamental guarantee for advancing sustainable development. We strictly comply with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Code of Corporate Governance for Listed Companies, and other relevant laws, regulations, and regulatory requirements. BOTH continuously enhances the standardization and transparency of its corporate governance to ensure that all operations are conducted in accordance with the law and regulatory compliance.

On the basis of compliance with relevant laws and regulatory requirements, the Company has established and continuously improved a governance system centered on the Articles of Association. We have formulated and implemented supporting procedural documents, such as the Rules of Procedure for the General Meeting of Shareholders and the Rules of Procedure for the Board of Directors. These documents clearly define the boundaries of responsibilities and operating mechanisms for the General Meeting of Shareholders, the Board of Directors, and senior management, thereby providing institutionalized and standardized support for corporate governance.

During the reporting period, BOTH optimized its governance structure in alignment with the changing regulatory environment and its own operational needs. In accordance with the institutional arrangements for the governance structure of joint-stock limited companies under the newly revised and implemented Company Law of the People's Republic of China, the Company carried out synchronous revisions and improvements to the Articles of Association and its appendices, including the Rules of Procedure for the General Meeting of Shareholders and the Rules of Procedure for the Board of Directors. Based on these revisions, we adjusted our governance framework: the Board of Supervisors was abolished, and its statutory supervisory powers were transferred to the Audit Committee of the Board. This formed a streamlined governance structure composed of the General Meeting of Shareholders, the Board of Directors, and its specialized committees, and senior management. Following the adjustment, the Audit Committee of the Board exercises statutory oversight and review over the Company’s financial information and disclosure, internal and external auditing, internal control, and compliance supervision. This transition further enhances the professionalism of the supervisory function and the operational eficiency of corporate governance.

In 2025, BOTH optimized its strategic execution system and organizational structure to align with the needs of business expansion and capacity building. To strengthen strategic implementation and collaborative progress, the Company established the Strategic Business Development Center. Serving as a platform for the coordination and advancement of strategic initiatives, this center is tasked with strategic business planning, organizational incubation, and implementation. We have integrated key focus areas into this platform, including the enhancement of design capabilities, the expansion of modular business, and the progression of overseas operations. At the same time, BOTH has embedded risk identification, assessment, and control mechanisms to ensure that strategic businesses are advanced within a compliant and steady framework. These eforts have collectively enhanced organizational synergy, execution eficiency, and governance efectiveness throughout the Company's business expansion process.

Directors and the Board of Directors

The Board of Directors of BOTH exercises its powers and functions in strict accordance with the Company Law of the People's Republic of China, the Articles of Association, and the Rules of Procedure for the Board of Directors. The Board has established four specialized committees: the Audit Committee, the Strategy and Sustainability Committee, the Nomination Committee, and the Remuneration and Assessment Committee. These specialized committees are accountable to the Board of Directors and perform their duties in accordance with the Articles of Association and the authorizations granted by the Board.

[Case Study] Conducting ESG Specific Training to Strengthen the Supervisionand Compliance Disclosure Level of the Board of Directors

On October 29, 2025, BOTH engaged an external professional third-party ESG institution to conduct on-site specialized training, covering all 11 members of the Board of Directors and senior management. The training featured systematic explanations and interactive discussions focused on ESG regulatory trends and disclosure requirements, governance responsibilities and oversight priorities, and material issue identification and closed-loop management. The training has bolstered the capabilities of Board members in identifying key issues, constructing oversight mechanisms, and managing disclosure compliance. It further promoted the effective embedding of ESG requirements into the Company's strategic decision-making and daily operational management processes, providing solid support for enhancing governance efectiveness and the quality of information disclosure.

The General Meeting of Shareholders and the Board of Directors of BOTH strictly adhere to laws, regulations, and regulatory requirements, and perform their duties in accordance with internal systems such as the Articles of Association of BOTH, the Rules of Procedure for the General Meeting of Shareholders, and the Rules of Procedure for the Board of Directors, continuously enhancing the standard of standardized operations. During the reporting period, all procedures—including the convening, holding, deliberation, and voting of the General Meeting of Shareholders and the Board of Directors—were executed in compliance with regulations. These actions efectively safeguard the legitimate rights and interests of the Company and all shareholders.

Summary of the 2025 Governance Meetings

\*Note : The Board of Supervisors was abolished in June 2025.

Investor Relations Management

Investor relations management is a vital practice built upon the foundation of two-way communication and value recognition. BOTH takes high-quality information disclosure as the foundation for ensuring that investors can gain a clear and comprehensive understanding of the Company’s value. At the same time, through diversified communication channels and standardized governance mechanisms, we actively listen to the voices of investors and safeguard the equal rights of all shareholders.

Information Disclosure Management

The Company strictly implements information disclosure management requirements and has formulated and pu into effect internal policies such as the Information Disclosure Management Policy and the Insider Information Management Policy. These policies serve as important tools for safeguarding investors’ right to know, maintaining fairness and order in the capital market, and improving the transparency of corporate governance, thereby ensuring that information disclosure is truthful, accurate, complete, and timely.

The Company strictly enforces confidentiality management requirements for insider information, clearly defining the confidentiality obligations of insiders prior to public disclosure and limiting access to insider information to the minimum necessary scope. It also standardizes the transfer and traceability management of insider information in ke processes such as planning and discussion, consultation and evaluation, document circulation, report preparation, deliberation, and disclosure, so as to prevent the leakage of insider information and the resulting risks of insider trading and selective disclosure.

To strengthen awareness of insider information confidentiality and compliant information disclosure, the Company conducts normalized advocacy regarding insider information management. In conjunction with the preparation of periodic reports and the progression of major matters, we issue regular email reminders to senior management and relevant personnel, enhancing key personnel’s ability to identify confidentiality obligations and compliance risks. These eforts help embed confidentiality requirements throughout the entire information management process and continuously improve the level of compliance in information disclosure management. During the reporting period, the Company did not commit any violations of stock exchange listing rules, the Articles of Association, or other relevant regulations.

Protection of Investor Rights and Interests

The Company attaches great importance to investor relations and has established an Investor Relations Managemen Policy. Following the fundamental principles of adequate disclosure, compliant disclosure, equal opportunity, honesty and good faith, eficiency and cost-efectiveness, and interactive communication, the Company is committed to establishing a sound communication mechanism, maintaining transparent and fair communication with investors, and actively conveying its investment value. Through various channels—including periodic and interim reports, General Meetings of Shareholders, the corporate website and Investor Relations columns, performance briefings analyst meetings, as well as telephone and email—the Company has built a solid bridge of mutual trust with investors, ensuring that they can obtain key information such as business progress and strategic planning in a timely, accurate and convenient manner, and jointly explore development opportunities.

During the reporting period, BOTH continuously improved the mechanisms and tools for shareholder participation in corporate governance. We launched a new online voting platform to provide shareholders with a more convenient voting channel, reducing participation costs and enhancing the accessibility and feedback efficiency of proposal voting. Furthermore, the Company implemented the Implementation Rules for the Cumulative Voting System. By introducing the cumulative voting system for matters such as the election of directors, we have strengthened the collective voting power of minority shareholders on key issues and enhanced their influence in corporate governance. The General Meeting of Shareholders separately tallies the votes of minority investors within the voting system to increase the visibility and protection of their opinions, further safeguarding the legitimate rights and interests of minority shareholders.

Statistics on Investor Communication and Engagement

The Company strictly enforces the Related Party Transactions Management Policy, adhering to the principles of openness, justice, fairness, and good faith to ensure the transparency and impartiality of all related party transactions. In the decision-making process for related-party transactions, the Company strictly enforces the recusal mechanism for related parties in voting and, where necessary, engages professional institutions or experts to provide independent opinions, thereby enhancing the independence of decision-making and the fairness of transactions, and safeguarding the interests of the Company and all shareholders.

The Company is committed to continuously improving investor returns, implementing a more proactive and transparent cash dividend policy and related decision-making procedures for profit distribution, ensuring the scientific, reasonable, and sustainable nature of the cash dividend policy. Since the listing in April 2023, we have distributed a total of RMB 328 million in cash dividends, with a total dividend of RMB 63.3622 million (inclusive of tax) in 2025, representing a cash dividend payout ratio of 30.88%. In 2026, the company's project scale is expected to grow rapidly. To reserve suficient funds to support the expansion of its core business, the company, after careful consideration and deliberation, has decided to lower the cash dividend payout ratio in 2025 compared to 2024, taking into account the long-term relationship between business development, performance growth, and shareholder returns.

Compliance and Risk Management

BOTH regards risk and compliance management as a fundamental safeguard for the Company’s steady and sustainable development, and continuously embeds compliance requirements throughout the entire process o corporate governance and business operations. By constructing a multi-dimensional risk management system led by senior management and supported by internal audit, the Company promotes the systematic operation of risk identification, assessment, and response, providing robust support for strategic implementation and long-term value creation.

The Company strictly complies with the Audit Law of the People’s Republic of China, the Basic Standards for Internal Auditing, and other applicable laws, regulations, and requirements, and has formulated and implemented policies such as the Internal Audit Management Measures and the Internal Reporting Management Measures for Non compliance, continuously improving its risk management and internal control systems. In terms of organizational structure, BOTH has established a risk management framework led by the General Manager, managed and supervised by the Audit Department, and collaboratively advanced by the Ethics & Compliance Committee and the Strategic Operation Committee. This framework clearly defines the boundaries of responsibilities and working mechanisms, forming a top-down risk management system characterized by clear division of labor and high synergistic eficiency.

The Company continues to strengthen the construction of its internal audit system. The Audit Department, serving as the executive body for internal audit, operates independently under the supervision and guidance of the Audit Committee of the Board of Directors and reports to the committee on a regular basis. The Audit Department does not participate in specific operational and management decision-making, ensuring the independence and objectivity of its oversight. Adhering to the principles of independence, objectivity, professional prudence, the equal importance of supervision and service, and cost-efectiveness, the internal audit function conducts audits and evaluations across the financial, operational, and performance sectors of the headquarters and all subsidiaries to identify potential risks an provide recommendations for improvement.

In terms of risk identification and assessment, the Audit Department employs a multi-dimensional approach for comprehensive analysis and judgment. On the one hand, we continuously track the external policy environment, regulatory requirements, and industry trends. On the other hand, the Company conducts in-depth analyses closely aligned with the annual audit direction and oversight priorities established by the Audit Committee of the Board. Simultaneously, the Audit Department dynamically monitors operational activities by participating in regular management meetings, enabling the timely identification of emerging management issues and latent risks. When identifying circumstances that have not yet manifested as substantial risks but could potentially impact governance efectiveness or compliance levels, the Audit Department conducts forward-looking pre-assessments based on riskoriented principles. By extending the scope of internal audit from ex-post supervision to ex-ante early warning, the Company ensures that its audit plans are precisely formulated and highly targeted.

In 2025, guided by its strategic objectives and annual business plan, the Company carried out risk identification based on a combination of annual internal control self-assessments, management interviews and work reports, communication with external audit institutions, and industry analysis and research. We evaluated and categorized major risks based on their potential impact and likelihood of occurrence, thereby defining risk priorities and the direction of resource allocation, and prioritized management and audit resources toward high-risk areas, so as to safeguard the Company’s sustained and sound development.

2025 BOTH Risk Identification and Response Strategy

Based on annual risk identification and graded assessment, the Company identified high-risk areas and weak points in control. Guided by the principle of Risk-Oriented and Value Creation, the Audit Department focuses on key risk points such as supplier and subcontractor management, procurement operations, and information security. This initiative drives the transition of audit work from risk identification to audit verification and rectification-driven enhancement.

Risk Category	Potential Impacts	Mitigation Measures
Operational Risk	Intensified market competition, limited market capacity, and evolving customer demands may exert pressure on market share, execution of operational plans, and strategic advancement.	Continuously monitor market and industry dynamics to adjust business strategies;Strengthen internal management and quality control;Track and review the implementation process of key projects to improve operational resilience and responsiveness;Actively explore new markets and projects to bolster overall competitiveness.
Capital Security & Compliance Risk	Fluctuations in the economic situation, changes in exchange rates and interest rates, and delayed collection of accounts receivable may increase financial pressure and increase bad debt risk.	Strengthen audit oversight and compliance checks on key areas such as fund utilization and financial reporting;Implement segregation of duties, regular inventory counts, and scientific authorization and approval processes;Reinforce financial management and compliance control to prevent financial risks.
Supply Chain Stability Risk	Fluctuations in raw material prices and supply instability may impact procurement costs, project delivery, and capital tie-up.	Formulate annual procurement plans in advance;Expand raw material sourcing channels;Establish contingency reserve mechanisms for critical materials;Enhance collaboration with core suppliers and provide financial support to ensure stable supply.
Information Security & Confidentiality Risk	Improper management of information system permissions or inadequate confidentiality measures may lead to data leaks or system security threats.	Implement Network Security Classified Protection and core data encryption technologies;Regularly conduct information security emergency drills and specialized confidentiality training to enhance protection of sensitive information and emergency response capabilities.
Internal Control Risk in Key Areas (Procurement, Outsourcing, etc.)	Inadequate execution of management processes may trigger compliance risks, cost overruns, or decreased management efficiency.	Refine processes for procurement, contract awarding (outsourcing), and related businesses, and strengthen supervision of policy execution;Conduct regular process reviews to enhance the effectiveness of internal controls.

Overview of Special Audit in Key Risk Areas for 2025 (Excerpt)

Operational Compliance and Process Optimization Audit

Centered around the three core areas of supply chain management, system implementation, and the entire procurement process, a dynamic closed loop of "Compliance Control Risk Warning" is constructed through special audits to deeply penetrate and accurately locate process loopholes and management blind spots.

Financial and Fund Security Audit

Ensure the authenticity and credibility of financial data, provide reliable data support for the company's investment and strategic decision-making, while strictly controlling financial risks, ensuring that raised funds are used for their intended purposes, and improving the eficiency of fund utilization.

Risk Prevention and Rectification Closed-loop Audit

Promote the full process upgrade of auditing from "post correction" to "pre warning, in-process control, and post optimization", systematically enhance the value of auditing, and create value for the sustainable development of the company through more eficient risk identification, more accurate decision support, and more perfect governance eficiency.

For issues identified through audits, the Audit Department promptly provides feedback to relevant departments and urges them to formulate corrective action plans, which are then reviewed by management and implemented accordingly. To facilitate the conversion of audit outcomes into management improvements, the Company simultaneously advanced multiple policy and process optimization measures. For instance, we issued the Notice on Strengthening Confidentiality Management of Corporate Information System Accounts to reinforce account security and permission approval requirements. Additionally, the Classified Management List for Equipmen and Material Brand Authorization Information was updated to optimize classification standards and enhance compliance management. Through the closed-loop mechanism of risk identification–audit supervision–rectification implementation–policy optimization, the Company continuously enhances its forward-looking prevention and contro capabilities for key risks and the overall efectiveness of corporate governance.

In response to risk points across diferent business segments, the Company conducted extensive multi-dimensiona legal training sessions. The curriculum was closely tailored to operational realities, covering critical legal areas such as the Labor Law of the People's Republic of China, the Civil Code of the People's Republic of China, the Anti-Monopoly Law of the People's Republic of China, and the Advertising Law of the People's Republic of China. These trainings holistically enhance employees' ability to identify and prevent potential compliance risks. During the reporting period, a total of 654 participants attended legal training sessions.

[Case Study] Specialized Training on Project Seal Management

To strengthen internal control over critical business processes, the Company conducted specialized training on project seal management for personnel in key positions. The training enhanced employees' ability to identify, review, and control seal-use risks, and deepened their understanding of the importance of risk management. Covering topics such as operational standards and case analysis, the training helped employees gain a more practical understanding of seal-related risk management, thereby improving the overall standardization of project governance and the Company’s risk prevention and control capabilities.

To systematically enhance the Company’s risk governance and solidify the foundation for compliant and stable operations, BOTH launched and implemented the "Xiangyun Safety Excellence Program" specialized risk prevention and control initiative in 2025, building upon its existing risk management and internal control systems. Focusing on critical areas such as workplace safety, compliant operations, business ethics, contract management, information security, public opinion risk, and quality management, the initiative clarified risk prevention principles, strengthened policy communication and implementation, and improved risk reporting and emergency response mechanisms. It helped integrate risk management requirements throughout the entire business process, strengthen employees awareness of risk and their compliance performance capabilities, and enhance the Company’s forward-looking identification of and systematic response to potential risks.

Anti-Corruption and Business Integrity

The Company upholds the core ethical values of "Integrity and Honesty, Responsibility and Accountability, Reverence for Nature and Love for People, and Integrity and Self-discipline." Strictly adhering to laws and regulations such as the Anti-Unfair Competition Law of the People's Republic of China and the Audit Law of the People's Republic of China, BOTH has formulated internal policies, including the Internal Reporting Management Measures for Non-compliance and the Internal Audit Management Measures. The Company places integrity, anti-commercial bribery, and anticorruption eforts at the core of corporate governance, fostering a sound culture of ethical conduct and maintaining zero tolerance for corruption. During the reporting period, the Company did not experience any incidents related to commercial bribery, corruption, or unfair competition.

The Company has established an Ethics and Compliance Committee as the coordinating mechanism for integrity and business ethics governance. The Committee is responsible for promoting a culture of integrity, periodically issuing codes of conduct, accepting and organizing the handling of whistleblowing reports regarding employee misconduct, liaising with external supervisory authorities, and making decisions on disciplinary actions for behaviors that prejudice the Company's interests. The General Manager’s Office serves as the standing office of the Ethics and Compliance Committee, undertaking day-to-day coordination and process management to ensure the efective operation of the mechanism.

Integrity Culture Building

The Company is dedicated to fostering an environment of honest cooperation and has extended its integrity requirements throughout the entire supply chain management process. In 2025, the Company issued the Integrity Initiative Letter to Supplier Partners to all business associates, and, through regular communication and outreach, continuously conveyed anti-corruption policies and compliance requirements to suppliers, advocating that all parties work together to maintain a fair and clean business environment.

The Company conducts normalized integrity education and communication activities to enhance employees awareness of self-discipline and their capacity for compliant duty performance. New employees are required to sign the Employee Integrity Commitment Letter upon onboarding to ensure that they understand and comply with the Company’s integrity commitments. Following onboarding, each employee receives corporate culture training introducing the company's mission, core values, and ethical standards, helping embed integrity concepts deeply in employees’ minds and integrate integrity values into job responsibilities and daily conduct. During the reporting period, 600 employees and 7 members of senior management received anti-commercial bribery and anti-corruption training.

[Case Study] Special Plan for Risk Prevention and Control—" Xiangyun Safety Excellence Program

During the reporting period, the Company focused on the prevention and control of corruption risks, leveraging the "Xiangyun Safety Excellence Program" to carry out specialized advocacy for a culture of integrity. The initiative systematically identified potential integrity risk scenarios that employees might encounter during the performance of their duties and clearly defined the behavioral boundaries and management requirements for clean and honest conduct. Through policy dissemination and case-based alerts, this specialized action further strengthened pre-emptive warnings and in-process controls for conflicts of interest and fraud risks. It enhanced employees' ability to identify integrity risks and their awareness of behavioral red lines, thereby reducing the probability of corrupt behaviors. This initiative continuously promotes the refinement of the integrity governance system and the construction of a clean supply chain.

Whistleblowing Mechanism

The Company encourages employees to actively participate in internal compliance governance and to expose potential misconduct through the whistleblowing mechanism, thereby safeguarding the Company’s operational order and the shared rights and interests of employees, and fostering a business ethics culture and self-purifying system centered on integrity.

To ensure accessible reporting channels and standardized handling, BOTH has formulated and implemented the Internal Reporting Management Measures for Non-compliance. The policy defines the governing bodies and their responsibilities, specifies the scope of reportable matters, and outlines working disciplines and information security requirements. Furthermore, the Company has established a full-process, traceable mechanism for handling reports. We provide multiple channels, including a reporting hotline and email, supporting both real-name and anonymous reporting to ensure that misconduct is promptly accepted, investigated, and addressed. The Company strictly maintains the confidentiality and protection of whistleblowers and the content of their reports. In principle, no individual—except for the Confidential Secretary of the General Manager's Office and the General Manager—is authorized to access the identity of the whistleblower. The measure ensures the personal and financial safety of those who report misconduct.

Reporting and Complaint Channels

Internal Reporting Hotline: 0510-8272086 ext. 8001

Email: nbbg@jsboth.com

The Company applies closed-loop management to verified misconduct cases, including incident investigation, accountability, policy optimization, and improvement of control procedures. For individuals who make significant contributions by providing reporting leads, BOTH ofers incentives or rewards based on the specific circumstances. These measures aim to bolster employee enthusiasm for participating in anti-fraud and compliance governance, thereby continuously enhancing the operational efectiveness of the integrity governance system.

BOTH Whistleblowing Handling Procedure

ESG Performance Table

Economic Performance

[1]Social Contribution Value Per Share = Basic Earnings Per Share + (Total Taxes Paid + Total Employee Wages and Benefits Paid by the Company + Interest Paid to Creditors such as Banks + External Donations and Other Value Created for Other Stakeholders - Other Social Costs Incurred due to Environmental Pollution, etc.) / Total Number of Shares Issued by the Company.

Environmental Performance

Environmental Management System

[1] Total Environmental Protection Investment: The statistical scope includes expenses incurred by the Company for hazardous waste disposal, garbage removal, dust control, and the procurement of materials required for civilized construction at project sites.

Energy Utilization and Addressing Climate Change

[1] Direct Energy Consumption: Direct energy use comes from gasoline for company-owned vehicles. Direct energy consumption is calculated using the average lower heating value coeficients published in the China Energy Statistical Yearbook by the National Bureau of Statistics.

[2] Indirect Energy Consumption: Indirect energy use comes from purchased electricity. Indirect energy consumption is calculated using the 20° C calorific value in accordance with GB/T 2589—2020 General Rules for Calculation of the Comprehensive Energy Consumption.

[3] Clean Energy Consumption: The 2024 clean energy consumption comes from solar street lights self-built in the factory area.

[4] The 2024 gasoline consumption data, upon review and verification by the Company, was found to have deviations in the original statistical scope. The 2024 figures for comprehensive energy consumption, direct energy consumption, comprehensive energy consumption per unit revenue, total GHG emissions (Scope 1+Scope 2), Scope 1 GHG emissions, and GHG emissions per unit revenue (Scope 1+ Scope 2) have been retrospectively calculated and corrected accordingly. In the 2024 statistics, data for Mainland China only included the headquarters (excluding business units); in 2025, the data statistical scope was refined to cover data from all domestic and overseas business units, subsidiaries, and all operational segments (ofice, project implementation, and manufacturing). Additionally, overseas subsidiaries commenced operations in 2024 but not for the full year. Therefore, gasoline consumption in 2025 increased compared to the previous year. Similarly, the Company’s 2025 direct energy consumption and Scope 1 GHG emissions increased compared to 2024.

[5] In 2025, subsidiaries in Malaysia and Vietnam did not lease shuttle buses, so no gasoline consumption was incurred in 2025.

[6] Purchased Electricity Consumption by Country: In the 2024 statistics, data for Mainland China only included the headquarters (excluding business units), and data for overseas countries like Thailand and Vietnam only covered overseas ofice operations. In 2025, the data statistical scope was refined to cover data from all domestic and overseas subsidiaries and all operational segments. Additionally, overseas subsidiaries commenced operations in 2024 but not for the full year. Therefore, electricity consumption in 2025 difers significantly from the previous year. Similarly, the Company’s 2025 indirect energy consumption and Scope 2 GHG emissions increased compared to 2024.

[7] Scope 1 GHG Emissions: Scope 1 GHG emissions originate from CO2 generated by gasoline consumption of company-owned vehicles. The carbon emission coefficient refers to the Guidelines for Accounting and Reporting Greenhouse Gas Emissions from Enterprises - Power Generation Facilities, the China Energy Statistical Yearbook, and the CEIC website. In 2025, gasoline consumption from overseas subsidiaries accounted for less than 3%, having a negligible impact on total GHG emissions; their emission coeficients are consistent with China’s values.

[8] Scope 2 GHG Emissions: Scope 2 GHG emissions originate from purchased electricity. The carbon emission coefficient for purchased electricity in Mainland China for 2024 adopts the Announcement on the Release of 2022 Electricity Carbon Dioxide Emission Factors issued by the Ministry of Ecology and Environment and the National Bureau of Statistics in 2024. For 2025, it adopts the Announcement on the Release of 2023 Electricity Carbon Dioxide Emission Factors issued by the Ministry of Ecology and Environment and the National Bureau of Statistics in 2025. The carbon emission coeficients for Vietnam, Thailand, and Malaysia are sourced from LowCarbonPower.

Water Resource Utilization[1]

[1] Statistical Scope: In the 2024 statistics, environmental data for overseas countries such as Thailand and Vietnam temporarily only included overseas office operations. The "Project Implementation" and "Manufacturing" data by stage also did not include the Company’s overseas operations. In 2025, the data statistical scope was refined to cover data from all domestic and overseas subsidiaries and all segments. Additionally, overseas subsidiaries commenced operations in 2024 but not for the full year. Therefore, water consumption in 2025 differs significantly from the previous year.

[2] Water Consumption: Water consumption is the net amount of water consumed and non-recoverable during the water use process. The calculation formula is: Water Consumption = Water Withdrawal - Wastewater Discharge. For project implementation, water consumption is calculated based on actual water withdrawal and discharge. Office operations and manufacturing do not have dedicated discharge facilities, so wastewater discharge is estimated as 90% of water withdrawal, i.e., water consumption is estimated as 10% of water withdrawal.

Pollutant Emissions and Waste Treatment[1]

[1] Pollutant Emissions and Waste Treatment: The 2024 statistical scope covers waste generated from ofice operations in Mainland China. The 2025 statistical scope covers waste generated from all operational segments in Mainland China and project implementation segments of overseas subsidiaries.

[2] Total Hazardous Waste Generated: Hazardous waste mainly includes discarded epoxy construction drums, waste paint drums generated during project implementation, and electronic products from ofice operations

[3] Total Non-hazardous Waste Generated: Non-hazardous waste primarily includes construction debris generated during project implementation, as well as waste from ofice operations such as used batteries, waste paper, household waste, toner cartridges, ink cartridges, and food waste.

Ecosystem and Biodiversity Protection

Green Construction

Social Performance

Employee Training and Development

[1] Total Number of Employees: Statistical scope covers entities included in the consolidated financial statements. [2] Employee Turnover Rate: Calculation formula: Number of employees who left during the year / Total number of employees. [3] Total Employee Training Expenditure: Among which, training expenditure for the core management team in 2025 exceeded RMB 700,000.

[4] Number of Employee Training Sessions: New online courses were added in 2025, resulting in a significant increase in the number of annual training sessions compared to the previous year.

Occupational Health and Safety

[1] Total Safety Production Training Hours: Total training hours are the sum of safety training hours per person throughout the year.

Diversity, Equality, and Inclusion

[1] Return-to-Work Rate of Employees Taking Parental Leave = (Total number of employees who returned to work after parental leave during the reporting period / Total number of employees who took parental leave) \* 100

[2] Retention Rate of Employees Taking Parental Leave = (Total number of employees who returned to work after parental leave and remained employed 12 months later / Total number of employees who returned to work after parental leave during the reporting period) \* 100

Quality Management

Data Security and Customer Privacy Protection

Innovation-Driven Development

[1] Number of Patent Applications during Reporting Period, Number of Patents Granted during Reporting Period, Number of Valid Patents during Reporting Period: The 2024 statistical scope did not include the subsidiary BOTHX Advanced Manufacturing Technology Co.,Ltd. The 2025 statistical scope covers BOTH Engineering & Technology Co., Ltd. and all its subsidiaries.

Sustainable Supply Chain

[1] The significant increase in the number of suppliers from Hong Kong, Macao, Taiwan, and overseas in 2025 compared to the previous year is due to the growth of the Company’s overseas business.

Supporting Community Development

Governance Performance

Anti-Commercial Bribery and Anti-Corruption

Anti-Unfair Competition

Compliance and Risk Management

[1] Number of Projects Not Passing Compliance and Risk Review at the Opportunity Assessment Stage: The Company conducts compliance and risk reviews during the opportunity assessment stage. Projects that fail the review are discontinued from the business process, and subsequent cooperation matters are not pursued. After data tracing, the number of "Projects Not Passing Compliance and Risk Review at the Opportunity Assessment Stage" for the 2024 fullyear company-wide scope should be 100, and the data has been updated accordingly.

Corporate Governance

Investor Relations Management

Appendix-Comparison Index Table

Index Table for the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies – Sustainability Report (Trial)

GRI Content Index

Statement of Use: BOTH has referenced and consulted GRI 1: Foundation 2021. Based on this, We have used the GRI Standards to prepare this ESG report in accordance with the GRI Standards.

Appendix- List of Full Names and Abbreviations of Subsidiaries

Abbreviations used in the report are defined as follows: