Environmental

Social and

Governance Report

Xiamen Jihong Technology Co. Ltd.April 2025CONTENTS

36 4 Governance: Enhancing Governance

36 4.1 Corporate Governance

1 About This Report 17 3 Social: Giving Back to 36 4.1.1 Board of Directors Structure Society 37 4.1.2 Diversity of Board of Directors

17 3.1 Product Responsibility 37 4.1.3 Investor Communication Mechanism2 Board of Directors Statement 17 3.1.1 Quality Management 38 4.2 Risk Management

21 3.1.2 Customer Service 38 4.2.1 Risk Governance

3 Message from the Chairman 11 2 Environment: Green Future 22 3.1.3 Information Security 38 4.2.2 Risk Identification and Response23 3.1.4 Innovation and R&D 38 4.2.3 Risk Awareness and Culture

11 2.1 Green Production 26 3.2 Supply Chain Management 38 4.3 Business Ethics

4 1 About Us 11 2.1.1 Environmental Management System 26 3.2.1 Supplier Admission and Evaluation 38 4.3.1 Business Ethics Governance11 2.1.2 Resource Management 27 3.2.2 Supply Chain ESG Management 39 4.3.2 Business Ethics Training

4 1.1 Company Profile 13 2.1.3 Emission Management 27 3.2.3 Supplier Communication 39 4.3.3 Whistleblowing Management

4 1.2 Organizational Structure 14 2.1.4 Green Products 28 3.3 Health and Safety

5 1.3 Milestones 14 2.2 Green Office 28 3.3.1 Work Safety

6 1.4 Annual ESG Performance Highlights 15 2.3 Climate Change 30 3.3.2 Occupational Health and Safety 40 5.Appendices

7 1.5 Annual Honors and Awards 15 2.3.1 Governance 31 3.4 Talent Development 40 5.1 HKEX - Environmental Social

8 1.6 ESG Governance 15 2.3.2 Strategy 31 3.4.1 Diversity Equality and Inclusion and Governance Reporting Guide Index

8 1.6.1 ESG Management Framework 15 2.3.3 Risk Management 32 3.4.2 Employee Rights Protection 42 5.2 Shenzhen Stock Exchange

9 1.6.2 Stakeholder Communication 16 2.3.4 Indicators and Targets 33 3.4.3 Employee Training and Development ESG Index

10 1.6.3 Materiality Assessment 16 2.4 Biodiversity 35 3.5 Social Welfare 43 5.3 Feedback FormABOUT THIS REPORT

Reporting Period

The report covers the period from January 1 2024 to December 31 2024 while also incorporating relevant information from preceding years.Report Scope

Unless otherwise specified the organizational scope of this report includes Xiamen Jihong Technology Co. Ltd. as well as its branch offices and This is the third Environmental

wholly-owned subsidiaries. It is consistent with the consolidated reporting scope specified in Jihong Group’s annual report. Social and Governance (ESG)

Report issued by Xiamen

Jihong Technology Co. Ltd.References

This report extensively referenced the Environmental Social and Governance Reporting Code in Appendix C2 of the Hong Kong Exchanges and Aligned with the principles of

Clearing Market’s Main Board Listing Rules the Shenzhen Stock Exchange’s Self-Regulatory Guidelines for Listed Companies No.1 - Standardized objectivity standardization

Operations for Main Board Listed Companies and Listed Companies Self-Regulatory Guidelines No. 17 - Sustainable Development Report (Trial); In transparency and comprehen-

preparing this report we also consulted the Global Sustainability Standards Board’s GRI Standards 2021 and the International Organization for

Standardization’s ISO 26000 - Guidance on Social Responsibility. siveness it outlines Jihong

Group’s endeavors and

accomplishments in fostering

Addressing comprehensive coordinated

To enhance clarity and readability throughout this report“ Xiamen Jihong Technology Co. Ltd” is interchangeably referred to as“ Jihong Group”

“the Company” and“ we.” and sustainable development.Data Description

The financial data and the financial and audit reports referenced in this report are detailed in the Xiamen Jihong Technology Co. Ltd. 2024 Annual

Report. Other data is primarily sourced from Jihong Group’s internal statistics. Unless otherwise specified all currency values presented in this report

are denominated in the Chinese Renminbi (RMB).Report Availability

The electronic version of this report is available for viewing or downloading on Jihong Group’s website (http://www.jihong.cn) and the Shenzhen Stock Exchange

website (http://www.szse.cn).-1-BOARD OF DIRECTORS STATEMENT

At Jihong Group the Board of Directors holds the highest responsibility for

overseeing and decision-making the Company’s ESG strategy and reporting.Through assessing and determining ESG risks the Board ensures the stability

of our risk management and internal monitoring systems. The Board authoriz-

es the Strategy Committee to supervise management activities and has estab-

lished the ESG Decision-Making Department to oversee the daily operations of

the sustainable development management.We regularly evaluate key ESG issues by considering external macro

environment and our development strategy. The results of these evaluations

are submitted to the Board for review. ESG risks and opportunities as

discussed and confirmed by the Board are incorporated into the Company’s

overall strategy with ongoing oversight to ensure effective issue management

and performance.The Company also plans to establish targets in key ESG areas—including

pollutant emissions energy consumption management water resource

consumption management and carbon emissions. We aim to integrate ESG

management performance into daily operational objectives to strengthen ESG

governance.This report provides a detailed disclosure of Jihong Group’s ESG progress

and achievements in 2024. It has been reviewed and approved by the Board of

Directors. The Board and all Directors confirm that to the best of their knowl-

edge the content of this report is free of any false records misleading

statements or material omissions. Each director assumes individual and joint

responsibility for ensuring the truthfulness accuracy and completeness of

this report.-2-MESSAGE FROM THE CHAIRMAN

In 2024 the global push for sustainable development gained momentum with the green economy and digital transformation

evolving in tandem. Jihong Group remained steadfast in its core philosophy o“f innovation-driven responsibility-first” strengthening

the strategic synergy between its packaging and e-commerce dual-pillar businesses. By leveraging technological innovation the

Company is empowering its green transformation and exploring emerging markets from a global perspective. Our cross-border social

e-commerce business has continued to expand while our leadership in green packaging solutions remains strong delivering value

and positive impact to shareholders customers and society.Green Future: Fulfilling a Low-Carbon Mission and Empowering Ecological Transformation

Jihong Group regards environmental responsibility as essential to achieving high-quality growth and is actively building a comprehensive green production system. We are reducing carbon emissions

throughout the entire packaging lifecycle by optimizing eco-friendly production processes and advancing research into biodegradable materials. We have also strengthened green office practices by using

digital systems for refined energy management and are actively participating in global climate governance. This includes working with partners across the supply chain to explore carbon footprint tracking

mechanisms. In 2024 two of Jihong Group’s production bases were rated as green factories setting new benchmarks for low-carbon transformation across the industry chain.Giving Back to Society: Fostering Responsibility and Building a Value Ecosystem

Guided by the philosophy of“ surviving on quality developing on credibility” Jihong Group integrates this principle throughout its business practices. We continue to strengthen our social responsibility

framework by taking a multi-faceted approach. We have established a comprehensive product safety standard to safeguard customer health and meet environmental needs. ESG collaborative management

with suppliers has been deepened to promote transparency and strengthen supply chain resilience. Furthermore we are committed to building a diverse and inclusive talent pipeline by enhancing career

development pathways for employees.In 2024 all ten of Jihong Group’s production bases were certified under ISO 9000 quality management system and SEDEX-4P while GiiMall received the“ Annual Best Market Influence Award” at the 4th

ChinaGo Cross-Border E-Commerce Industry event. Employees also actively engaged in volunteer work and charitable initiatives strengthening the connection between business success and social contribu-

tion.Enhancing Governance: Fortifying the Compliance Foundation for Long-Term Development

Jihong Group continues to refine its governance framework integrating ESG objectives into strategic decision-making and daily operations. A structured management and decision-making

framework—comprising the Shareholders’ Meeting Board of Directors Board of Supervisors and senior management—has been established to strengthen top-level design and execution oversight. We have

also developed a comprehensive risk control system that covers critical areas such as supply chain integrity and data security. Efforts to promote anti-corruption culture have been deepened encouraging the

internalization and externalization into actions of compliance awareness and ethical standards across the organization.Looking ahead to 2025 Jihong Group will leverage intelligent manufacturing R&D innovation and green factory construction as breakthrough initiatives to advance its green development goals. In the

packaging sector we will continue to accelerate technological innovation and invest in eco-friendly packaging solutions. In the e-commerce sector we will harness AI large models to enhance end-to-end

intelligence and expand further into emerging markets under the Belt and Road Initiative. The future is already here and Jihong Group is eager to collaborate with stakeholders from all sectors to create a

greener high-quality development landscape.-3-1 ABOUT US

·Build ten brands with global influence

We have always stuck to the principle of“ surviving with quality and developing with credit” and are dedicated to

1.1 COMPANY PROFILE building ten brands with global influence to provide high-quality products and extremely convenient services for global

consumers.Xiamen Jihong Technology Co. Ltd. is a leading dual-engine enterprise driven by technology innovation and digital intelligence. ·Enable partners to achieve both material and spiritual prosperity

The Company focuses on two main areas: cross-border social e-commerce and paper-based FMCG packaging solutions. Its core To realize employees’ self-value we strive to establish a fair and impartial remuneration incentive management system

business is divided into two channels. The To-C (consumer-focused) channel specializes in precision marketing for cross-border social to achieve both material and spiritual prosperity and facilitate mutual progress and development for individuals and the

e-commerce while the To-B (business-focused) channel offers comprehensive marketing design and packaging services for leading Company.FMCG clients. Currently the Company is one of the leading cross-border social e-commerce enterprises in Southeast Asia and has been

ranked among the“Top 100 Chinese Printing and Packaging Enterprises of 2024.”

·Focusing on entrepreneurship and forging ahead through difficulties1.2 ORGANIZATIONAL STRUCTURE

Running an enterprise is much like rowing a boat against the current; if we let up even slightly then we risk undoing all

of the progress we have made. We should remain committed to hard work as entrepreneurs and make headway to

Shareholders’ maintain our vitality and competitiveness.Meeting

Board of

Supervisors ·Simplicity Perfection efficient collaboration goal-oriented effort and Strategy accountability for results

Committee Board of

Directors We manage to form a horizontal organizational structure build shoulder-to-shoulder trust and set unified objectives to

Nomination remove estrangement and rift among employees which helps us work together towards clear and achieve the goal of the

Committee Board

Secretary company's long-term sustainable development.Audit Audit

Department Committee General

Manager

Securities

Remuneration and

Assessment Committee Department

·Data-centric technology-driven outcome-focused and all are operators

We strengthen the operator thinking and embed it into our operation. We upgrade our technologies driven by business

procedures and then improve our business organizing capability to create digitalized and data-centric assets which are

Assistant to the Deputy General

General Manager Manager transformed to enhance our reproducing capability with big data AI and other technologies. Using data we reinforce the

digital operations and innovation capabilities of our teams through the circulation and accumulation of production

processing using and reproduction to control quality and cost in a strict manner. Thus we achieve high-frequency iteration

Marketing Operations R&D Procurement Finance Human and rapid revolution of our organization which is data-centric technology-driven and outcome-focused.Center Center Innovation Center Center Resources

Information Design

Center Center Center Center

Jihong Group Organizational Structure

Corporate vision Corporate culture Business philosophy1.3 MILESTONES

2023·012023·06

We integrated the We signed a joint 2023

ChatGPT API to innovation agreement

empower on the AI large model We developed and

cross-border with Huawei Cloud perfected the automated

e-commerce officially launching intelligent and digital

2022 businesses in areas the second phase of cross-border e-commerce such as AI-driven cooperation for business management

product selection AIGC-based deep system Gikin3.0. On this

We upgraded the the creation of empowerment of the basis we gradually rolled

warehousing graphic and video cross-border out the e-commerce text

system and advertising e-commerce vertical model

achieved fully materials and platform jointly ChatGiKin-6B the

We formed a automated and intelligent ad creating the Pangu e-commerce intelligent

platform intelligent placement. cross-border design and material

e-commerce team. operations. e-commerce large generation vertical model

model and GiiAI and the intelligent

Jihong was officially

founded and focused on 2019·11 2022 promoting a deeper ad placement assistant level of digital G-king laying a solid

the packaging industry We made significant transformation. foundation of intelligent

building ten factories progress in achieving systems for the

across China to offer our digital strategy Company’s long-term

comprehensive marketing objectives by sustainable development

and packaging design implementing 2024.02 in cross-border services to leading FMCG decision support e-commerce business.companies. systems such as Jihong Group has

Smart Companion submitted its

2003·12 2019·05 Early 2020 2022·06 Boss Assistant application to 2024.03

We initiated a Indicator Monitoring the Hong Kong We launched the

full-scale drive We rolled out an and Talent Map. Stock Exchange GiiMall in collaboration e-commerce

management towards enterprise automated operations

and intends to with Amazon SinoClick

system v3.0. automation and management system on

complete an A+H and Partner Boost hostedintelligence which a third-party platform dual listing plan. the“ Internal and External 1996·12 involved rolling out a which has contributed Synergy for Resilientbig data system an to the exponential Growth” themed event

Jihong Group’s intelligent product growth of orders on that 2022 attracting numerous predecessor Xiamen selection system and platform. cross-border e-commerce

Zhengqi was established 2019·03 an automated 2020 We established brand sellers industry

specializing in graphic advertising system. cross-border experts and cross-border We upgraded

design and advertising 2016·07 electric bicycles service providers to come We formed a brand the workflow

planning. Jihong released its operation team. management and beauty

together.IPO on the Shenzhen system V3.0 product brands.Stock Exchange. 2024.09

2017 We expanded the 2021·11 The current Sheikh of Ras Al

The Company issued an

R&D team Khaimah in the United Arab announcement stating its

established a data Emirates Sheikh Saoud visited the intention to co-invest We entered the

Giikin was established analysis team and 2021 Eastern European company’s leadership and both with VENUS TRADING to expand our implemented sides engaged in in-depth FZCO to establish a joint

cross-border management

market.We tried to discussions on cooperation venture AJT Holding

e-commerce business systems for broaden our channels investment projects and International Limited at

in Southeast Asia 2017 workflow product brand portfolio by market expansion. the Dubai International which opened up a selection financial 2019 tapping into new In the same month a delegation led Financial Centre in the new avenue of growth We consecutively settlement order markets such as by the Chairman of BMJ Industries - UAE. This initiative aims

for us. entered the markets tracking and lingerie home 2021·07 the largest tobacco production and to actively expand its warehousing. We made significant of Hong Kong Japan textiles. manufacturing enterprise in the UAE overseas presence - efforts to promote

Thailand Malaysia 2018·03 We established a strategic - visited the company headquarters

particularly in the Middle

our brand strategy

and Singapore. partnership with Huawei and its intelligent packaging

East and Africa - and

and build our Cloud. This partnership production base. They highly

accelerate the

corporate recognized the company’s smart international layout and

culture. enabled us to utilize advanced AI technology manufacturing refined operational

strategic planning of its

management innovative cross-border business.and computing resources

2017·12 to implement intelligent development capabilities and systems for big data steadfast commitment to the coreWe upgraded the e-commerce analytics and ad design philosophy of“ green environmen-

2024.12management system v2.0. and delivery. tally friendly and sustainable.”

-5-1.4 ANNUAL ESG PERFORMANCE HIGHLIGHTS

ENVIRONMENT: SOCIAL: GIVING GOVERNANCE:

GREEN FUTURE BACK TO SOCIETY ENHANCING GOVERNANCE

9 production facilities have been certified under All 10 production bases have been certified under ISO 9000 for Quality Management The Company held 12 Board of Directors meetings 8

the ISO 14001 for Environmental Management System and Sedex-4P; 2 production bases have received BRCGS A+ grade certification; 1 Shareholders’ Meetings and 8 Board of Supervisors

System; production base has received BRCGS A grade certification; and 5 production bases have meetings throughout the year;

undergone FSC certification;

Jihong Group’s Langfang factory was rated as a Conducted a total of 2 performance briefing

provincial-level green factory and the Anhui No product recall incidents occurred; meetings received 68 interactive responses and

factory was rated as a municipal-level green disclosed 160 announcements;

factory; Filed 64 new patent applications of which 53 were approved and obtained 30 new

software copyrights; Conducted 4 anti-corruption training sessions for

Annual photovoltaic power generation at Board members totaling 4 hours of training and

Xiamen & Anhui factories exceeds 2 million kWh Company was included in the first batch of technology-based SMEs in Hubei Province for achieving a 100% participation rate；

reducing CO2 emissions by 2267 tons; 2024 recognized as a Technology Innovation Demonstration Enterprise in Tangshan and

received one Second Prize and one Third Prize for Science and Technology Progress in No lawsuits or administrative penalties related to

Obtained green product certification for express Henan Province; unfair competition embezzlement bribery or

packaging. money laundering were reported.Total employee training reached 43691 hours with an average of 10.1 hours per

employee;

Employees participated in 146 volunteer activities contributing 421 volunteer service

hours. Invested RMB 30500 in charitable projects supporting local communities.-6-1.5 ANNUAL HONORS AND AWARDS“Top 20 Private Service “Top 100 Private Enterprises “Top 50 Service Providers forEnterprises in Xiamen” of Fujian Province” Chinese Enterprises Going Global”

Xiamen Federation of Industry and Fujian Federation of Commerce & Industry Jointly selected by Cailian Press and the China

Commerce Overseas Development Association

JIHONG GROUP 2024 MAIN HONORS AND AWARDS“2024 Top 100 ManufacturingEnterprises of Fujian Province” “High-Quality Suppliers” “2024 Shanghai SecuritiesChina (Xiamen) International

Fujian Enterprises and Entrepreneurs News Gold Quality Award -

Cross-Boarder E-Commerce ExpoConfederation Fujian Academy of Social ESG Award”

Shanghai Securities News

Sciences and Fujian Media Group

-7-1.6 ESG GOVERNANCE

Jihong Group is firmly committed to sustainable development integrating sustainability principles into both daily operations and

long-term strategic decision-making. The Company continuously strengthens its ESG management system fostering effective ESG MANAGEMENT FRAMEWORK

communication and engagement with stakeholders while striving to enhance its ESG management capabilities.

1.6.1 ESG MANAGEMENT FRAMEWORK

LEVEL RESPONSIBILITY

Jihong Group places great emphasis on ESG management and has established a clear hierarchical ESG governance framework with

well-defined responsibilities. The Board of Directors as the highest authority oversees all ESG-related decision-making. Authorized by

the Board the Strategy Committee manages and approves ESG issues. The ESG decision-making department handles the day-to-day

implementation of ESG strategies and activities. This comprehensive system ensures a top-down execution of ESG responsibilities

effectively advancing the Company’s sustainable development management.BOARD OF Authorize the Strategy Committee to approve and supervise

ESG MANAGEMENT PRINCIPLE DIRECTORS ESG-related matters.Assess and manage the Company’s ESG-related risks and

opportunities to ensure the continuous execution and implementa-

tion of the Company’s ESG policies.Integrating Collaborating Aligning with

into corporate business global Develop guidelines on important ESG matters review and rate the

strategy development standards significant issues identified.STRATEGY Review the Company’s ESG work and internal monitoring systems

COMMITTEE and provide suggestions on their suitability and effectiveness.From a strategic perspective We persist in integrating In accordance with ESG

we integrate ESG ESG management international standards

responsibilities into the concepts into internal Review the Company's ESG-related disclosure documents includingnational standards

corporate development operations and external regulatory requirements (but not limited to) annual ESG reports.strategy to achieve unified business outputs. and other relevant

deployment and policies and initiatives we Regularly report to the Board of Directors and provide ESG-related

coordinated advancement. We strengthen the vertical advance the Company’s

integration with various training and materials.systematic standard and

We establish an ESG key departments and routine ESG management

indicator system that aligns branches to ensure the to align with global

with the characteristics of formation of an efficient standards in aspects such

the enterprise build a and powerful ESG work as policy systems

closed-loop management network achieving the management systems

system for corporate ESG close integration of the process mechanisms

governance and coordinate Company’s ESG Coordinate supervise and manage the overall risks associated withaction measures and

the Company’s responsibilities and ESGperformance the Company’s business operations and quality control.development in economic business operations. management. DECISONMAKING

social and environmental

DEPARTMENT Collaborate with relevant departments to carry out ESG risk aspects.prevention and management and conduct irregular reviews.-8-1.6.2 STAKEHOLDER COMMUNICATION

Jihong Group values open and active communication with all stakeholders. The Company has established a regular multi-channel

communication framework to ensure transparency and responsiveness. It actively addresses the concerns and expectations of

stakeholders—including shareholders customers government and regulatory agencies employees partners media and community

representatives—fostering mutual development. JIHONG GROUP’S STAKEHOLDER COMMUNICATION MECHANISM

STAKEHOLDERS Shareholders Customers Governments and regulators Employees Partners Media Community representatives

Sustainable packaging Addressing climate change

ISSUES OF Product responsibility

Corporate governance Technological innovation Corporate governance

Diversity and equity

Talent attraction and retention Product carbon footprint Community development

CONCERN Risk management Customer satisfaction Risk management Employee training and Responsible marketing Energy and resource and investment

Circular economy Responsible marketing Business ethics and development Supply chain management conservation

Information security anti-corruption

Pollutant emissions

Health and safety Waste management

and privacy protection Pollutant emissions

Employee satisfaction survey

Shareholders’ Meeting WeChat official account Internal office systems

Regular reports and Customer satisfaction survey Internal communication Project procurementSupplier contracts

COMMUNICATION announcements Product survey feedback Information disclosure meetings Community activitiesInterim announcements Customer complaint Daily communication Employee complaints and agreements Exclusive interviews Public welfare activities

FORMS and notices and handling and reporting and feedback

Supplier audit and evaluation Company website and

Company website Online and offline activity Supervision and inspections Internal and external Supplier assistanceand cooperation social media interaction

Company website and

Investor mailbox promotion Visitor receptions training activities social media interaction

Online and offline Company website and social Publicity activities of Other supplier

investor meetings media interaction corporate culture communication activities

Employee care activities

-9-1.6.3 MATERIALITY ASSESSMENT JIHONG GROUP 2024 ESG MATERIAL Environmental Social Issue Governance Issue

ISSUES MATRIX Issue

High

To strengthen ESG practices and improve information disclosure Jihong Group conducts materiality assessments to identify ESG

issues in reference to the Hong Kong Exchanges and Clearing Limited (HKEX)’s Environmental Social and Governance Reporting Code

and the Shenzhen Stock Exchange’s Listed Companies Self-Regulatory Guidelines No. 17 - Sustainable Development Report (Trial).This process ensures that the report comprehensively covers key issues of concern to both the Company and its stakeholders. Supply Chain Management

Sustainable Packaging

Every two years the Company conducts a comprehensive and in-depth study and assessment of material issues through interviews

and questionnaires. This approach helps understand and respond to stakeholder concerns and priorities while aligning with external

market trends and the Company’s operational characteristics. In 2024 as there were no significant changes to the business Responsible Marketing Risk Management Addressing Climate Change

environment the Company continued to apply the materiality assessment results from 2023.Information Security and Privacy Protection Pollute Emissions

Product Responsibility

Health and Safety

MATERIAL ISSUES DETERMINATION PROCESS

Customer Satisfaction Waste Management

Employee Training and Development

Technological Innovation

We conducted a comprehensive review of the Company’s key ESG issues and the

concerns of various stakeholders in accordance with the Hong Kong Exchanges and Business Ethics and Anti-Corruption

Clearing Market’s Environmental Social and Governance Reporting Code and the Product Carbon Footprint

Global Sustainability Standards Board’s GRI Standards 2021. By benchmarking Corporate Governance

against domestic and international peers we identified key ESG issues.Energy and Resource Conservation Diversity and Equity

Talent Attraction and Retention

Based on the results of the preliminary stakeholder questionnaire survey and in Circular Economy

combination with the ESG rating and index assessment requirements of the capital

market (such as MSCI and S&P DJSI) we evaluated and ranked different issues Community Development and Investment

based on their significance to both Jihong Group and stakeholders. Subsequently

we formulated Jihong Group’s ESG material issues matrix.The Strategy Committee is responsible for reviewing and affirming the ESG

material issues identified through the assessment process outlined above. It

reports these findings to the Board of Directors and offers recommendations

regarding the final determination of these issues.Low Importance to Jihong Group High

High Importance Moderate Importance

Importance to Stakeholders Low Importance

Issue Screening and Review and

identification assessment confirmation2 ENVIRONMENT: GREEN FUTURE

2.1.2 RESOURCE MANAGEMENT

Jihong Group adheres to green development actively practices the concept of energy conservation and emission reduction deeply

integrates sustainable development into the enterprise operation process and creates an environmentally friendly enterprise by

continuously improving green manufacturing capabilities contributing to the green transformation of the industry. Jihong Group is committed to conserving energy and reducing emissions. By strengthening energy management and improving

resource efficiency the Company continues to advance its long-term sustainability goals.

2.1 GREEN PRODUCTION ENERGY MANAGEMENT

The Company strictly adheres to the Law of the People’s Republic of China on Energy Conservation and other relevant laws and

2.1.1 ENVIRONMENTAL MANAGEMENT SYSTEM regulations. It has established internal policies such as the Energy Conservation and Consumption Reduction Management System

Energy Conservation and Consumption Reduction Organizational Management System and Energy Conservation and Emissions

Reduction Management System and has set up an Energy Management Group to coordinate its energy management efforts. The

Jihong Group complies with relevant laws and regulations such as the Law of the People’s Republic of China on Environmental Company continuously optimizes production processes enhances energy efficiency management and strives to reduce energy

Protection the Law of the People’s Republic of China on Environmental Impact Assessment the Forest Law of the People’s consumption at each stage. The goal is to maximize productivity and economic benefits while keeping energy consumption to a

Republic of China the Law of the People’s Republic of China on the Protection of Wildlife and the Regulations of the People’s minimum.Republic of China on Wild Plants Protection. To ensure effective environmental management the Company has also developed

internal policies including its Environmental Management System to monitor and control its ecological footprint during production. JIHONG GROUP’S HIGHLIGHT MEASURES

In 2024 9 out of 10 production facilities earned ISO 14001 certification for environmental management. Additionally the Anhui factory ON ENERGY-SAVING AND EMISSION REDUCTION

was recognized as a municipal-level green factory while the Langfang facility achieved provincial-level green factory status.Anhui Jihong Environmental Protection Paper Products Co. Ltd

Optimizing Equipment Strengthening Energy Enhancing Employee Awareness

received the 2024 Bengbu Green Factory Certification. Operation Management on Energy Conservation

Rational Production Scheduling: Conducting Training: Utilize training

Implement coordinated production Installing Electric Meters: The sessions and all-employee meetings

planning and material preparation Equipment Department installs to promote energy conservation

to avoid equipment idling and electric meters on key machinery enhancing employees’ awareness

reduce standby energy and high-consumption areas to and cultivate energy-saving habits.consumption. monitor power usage and promptly

identify any anomalies. Displaying Energy-Saving Signs: Post

Use of Variable Frequency energy-saving signs above switches

Optimizing Electricity Usage Plans:

Langfang Jihong Packaging Co. Ltd. received Technology: Apply variable and sockets in common areas such

frequency drives to equipment During the off-peak production as office buildings and dormitories

a provincial-level Green Factory Certification. such as fans and pumps adjusting season from March to August the to serve as constant reminders.power output based on demand. Company adopts single-shift

production employs staggered Strengthening Daily Inspections:

electricity usage shifts all

The Company has formulated an Environmental Protection Emergency Plan to ensure a clear standardized approach to handling Phasing Out High-Energy-Consum- During day shifts cleaning staff

ing Equipment: Replace such production to the night shift and patrol their designated areas to

unexpected pollution incidents. The goal is to reduce environmental damage and minimize potential losses. To oversee this an equipment with high-efficiency takes advantage of off-peak promptly turn off any lights that

Emergency Rescue Leadership Group coordinates with various departments to investigate causes assess impacts and organize energy-saving alternatives; all electricity rates to reduce electricity remain on; during night shifts

costs.regular emergency drills and risk inspections. Additionally when conducting environmental impact assessments the Company lighting in workshops warehouses security personnel conduct

strictly adheres to the Classified Administration Catalogue of Environmental Impact Assessments for Construction Projects issued by office buildings and dormitories inspections across all areas to

has been replaced with LED ensure lights are turned off when

the Ministry of Ecology and Environment of the People’s Republic of China and hires qualified institutions to carry out the relevant lighting. not needed.evaluations.-11-As part of our commitment to green low-carbon operations we continuously refine our energy strategy promote clean and renewable

energy and invest in low-carbon process innovations and energy-efficient technology upgrades to improve overall efficiency. In 2024 WATER RESOURCE MANAGEMENT

the photovoltaic equipment at the two factories in Xiamen and Anhui both generated over 2 million kilowatt-hours of electricity

annually which is equivalent to a reduction of approximately 2267 tons of carbon dioxide emissions.The Company strictly adheres to the Water Law of the People’s Republic of China and other relevant laws and regulations and has

established a Water Conservation Management System. It continuously optimizes high water-consuming production processes

installs advanced wastewater treatment equipment and enhances water recycling systems. Its factories are equipped with reclaimed

JIHONG GROUP’S ENERGY CONSUMPTION water treatment systems and boiler water purification equipment allowing wastewater to be treated and reused for equipment

cleaning. These efforts help increase the proportion of recycled water used significantly lowering industrial wastewater discharge.INDICATOR UNIT 2024 2024 HIGHLIGHT MEASURES FOR WATER

CONSERVATION IN THE FACTORY

Gasoline ton 27

Diesel ton 28 Recycling Water Resources: The watermarking machine establishes a water recycling system filtering and

cleaning equipment water for use in ground cleaning or landscaping.Natural Gas cubic meter 2863157 Reducing Cleaning Water Consumption: By adopting no-rinse CTP plates the water used for equipment

cleaning is reduced.Purchased Electricity kWh 51384764 Improving Cleaning Processes: Low-water consumption techniques are applied with high-pressure water

jets replacing traditional methods for cleaning floors and walls and floor scrubbers used for sweeping

Purchased Heat GJ 479 floors.Total Energy Consumption tce 9867 Intelligent Water-Saving Management: Install sensor faucets and flow sensors to automatically control

water usage and monitor anomalies in real time.Energy Consumption Intensity tce/RMB 1 million of revenue 1.78 Recycling System: Introduce a reclaimed water system where treated wastewater is used for flushing

landscaping and equipment cleaning with production washing water recycled through a closed-loop

system.Water-Saving Achievements: Comprehensive water-saving measures have reduced the Company’s total

water consumption by 40% lowered wastewater discharge and met green production standards.JIHONG GROUP’S WATER USE IN 2024

Purchased water Water Consumption Intensity

13495824.41

ton ton/RMB 1 million of revenue

The Luanzhou The Shaanxi

Factory Factory2.1.3 EMISSION MANAGEMENT NITROGEN OXIDES SULFUR OXIDES PARTICULATE MATTER

Jihong Group actively creates a green and environmentally friendly production environment by establishing a comprehensive JIHONG GROUP’S

emissions management system and disposal procedures. The Company enforces strict controls on wastewater air emissions and solid TOTAL WASTE GAS 2.37 0.33 0.30

waste to reduce environmental impact and support long-term sustainability. EMISSIONS IN 2024 ton ton ton

WASTE WATER

SOLID WASTE

The Company strictly adheres to the Law of the People’s Republic of China on Water Pollution Prevention and Control and the

Regulation on Urban Drainage and Sewage Treatment and has established a Production Wastewater Treatment Management System

to ensure proper wastewater handling and prevent pollution risks. Each production unit operates under a grid management approach The Company strictly complies with the Law of the People’s Republic of China on Environmental Protection the Law of the

clearly defining the responsibilities of wastewater treatment personnel. These responsibilities are integrated into performance People’s Republic of China on the Prevention and Control of Environment Pollution by Solid Wastes and other relevant laws and

evaluations ensuring compliance and preventing unauthorized discharges. To maintain stable operations the management team regulations. Based on its production needs it implements waste classification promotes reduction and recycling and improves

conducts cleaning and internal loss inspections every six months adjusting maintenance based on equipment performance. Addition- resource utilization efficiency. For hazardous waste the Company has established a Hazardous Waste Management System

ally all affiliated factories are equipped with reclaimed water treatment systems allowing wastewater to be recycled further reducing submitting management plans to environmental authorities as required. Each department is responsible for collecting documenting

industrial discharge. and categorizing hazardous waste which is then transferred to the hazardous waste management team for proper storage in a

designated hazardous chemicals waste warehouse. To ensure safe and compliant disposal Jihong collaborates with certified

hazardous waste disposal units and assigns an administrative officer to oversee waste handling including receipt storage and

transfers.JIHONG GROUP’S TOTAL EMISSIONS IN 2024

WASTE TYPES UNIT 2024

Waste Printer Toner Cartridges kg 104.97

1269 Waste Printer Cartridges kg 51.00ton 66269ton

Industrial Wastewater Discharge Domestic Sewage Discharge Waste Mercury-Containing Fluorescent Tubes kg 36.00

Waste Electronic Equipment kg 60.00

Used Batteries kg 16.92

WASTE GAS

Kitchen Waste ton 174.05

The Company strictly complies with the Law of the People’s Republic of China on on Prevention and Control of Atmospheric

Pollutionand other relevant laws and regulations and has established a Prevention and Control System for Waste Water Waste Gas

Domestic Waste ton

Dust and Solid Wastes ensuring strict compliance with emission standards. To maintain transparency the Company conducts 548.83

environmental impact assessments and discloses the relevant results. In enclosed production areas where waste gas is generated

Jihong installs and maintains pollution control facilities as required. It also uses high-efficiency dust removal and filtration technolo-

gies to capture and treat emissions in each workshop reducing environmental impact while meeting regulatory standards.Hazardous Waste Non-HazardousWaste

JIHONG GROUP’S TOTAL WASTE

GENERATION VOLUME IN 20242.1.4 GREEN PRODUCTS

Jihong Group is committed to the research and development of eco-friendly packaging materials and has earned green product

certification for express packaging. The Company actively works to reduce plastic use and minimize material consumption in

packaging printing providing sustainable high-value solutions to its customers. In the future we will continue to expand our focus on

green products support industry-wide sustainability efforts and contribute to carbon peaking and carbon neutrality goals.Jihong Group Express Packaging Green

Product Certification Certificate

packaging materials 2024 packaging material usage density5945.07 ton 1.08 ton/RMB 1 million of revenue

2.2 GREEN OFFICE

JIHONG GROUP’S GREEN PRODUCT

HIGHLIGHT CASES IN 2024

Jihong Group strongly advocates green office practices and has implemented a series of various measures to save energy and reduce

emissions. These efforts include conserving electricity minimizing paper use reducing water consumption and raising employee

Innovative Waterproof Paper Bags awareness about environmental responsibility.Leveraging our experience in packaging design and market insights we JIHONG GROUP’S GREEN OFFICE MANAGEMENT MEASURES

push beyond traditional limits with advanced technology integrating

new waterproof materials into paper bags to improve material efficiency.Equipmen0t M2anagement

Pape0rles1s Office ·Solar-powered street lights are installed in the 03factory using high-power energy-saving lamps. Domestic Waste

Innovative Convenient Packaging ·Signs are posted to remind that air conditioning Managementcooling temperature should not be lower than 26

·Print on both sides unless ℃ and heating temperature should not exceed

Through market research and demand surveys we have developed otherwise required. 22℃ with air conditioning turned off half an hour ·Set up designated areas for

before leaving.user-friendly packaging solutions like rotating pull-out boxes and handle ·Automatic control switches are installed for domestic waste disposal and

public area lighting maximizing the use of implement waste classification.beverage bags. These designs simplify packing reduce processing time natural light and reducing the number of lights ·Post“ No Waste” signs in the

used when lighting levels are sufficient. cafeteria to strengthen management

and improve the overall customer experience. ·Employees are required to actively turn off lighting equipment when leaving the office area. and assessment.-14-2.3 CLIMATE CHANGE

2.3.1 GOVERNANCE Types of Risks Risk Description Countermeasures

Cost of ·Optimizing Energy Management: Invest in

Upgrading ·The cost of upgrading equipment energy-efficient equipment refine production

Jihong Group fully implements the new development philosophy positioning climate change as one of the core issues in corporate Low-Carbon Emission for energy efficiency is increasing. processes and reduce overall energy

governance. The Company has built a scientific and efficient climate governance system regularly assessing how climate-related Technologies consumption.risks—such as extreme weather policy shifts and market changes—could impact operations. Based on these evaluations it develops

·Developing Green Products: Launch

response strategies to ensure transparency and accountability. In addition we prioritize open dialogue with stakeholders driving ·Consumers are increasingly low-carbon eco-friendly products to meet

climate-focused decision-making through seminars ESG reports and other initiatives. prioritizing low-carbon products. consumer demand.Changing Companies that fail to adapt may

·Strengthening Environmental Awareness

Campaigns: Promote sustainability efforts to

Behaviors and risk losing market share. enhance brand image and attract

Preferences of ·Downstream corporate clients eco-conscious customers.expect suppliers to provide green ·Providing Carbon Footprint Information: Customers Measure and label product carbon footprints to

2.3.2 STRATEGY low-carbon products and align with increase transparency.

carbon neutrality goals. ·Participating in Environmental Certifications:

Obtain environmental certifications to enhance

product competitiveness.The Company considers climate change a key component of its long-term strategic planning. To support China’s carbon peaking and

·Conducting Supply Chain Risk Assessments:

carbon neutrality goals the Company has formulated the Action Plan for Carbon Peaking and Carbon Neutrality of Jihong. At the same Identify climate risks within the supply chain

time Jihong Group actively seizes climate-related opportunities by exploring sustainable packaging solutions sustainable packaging and develop response plans.solutions in the paper-based FMCG packaging sector. These strategic efforts not only strengthen the Company’s competitiveness but ·Supply shortages and declining ·Diversifying Suppliers: Reduce reliance on a

also align business growth with sustainability creating shared value for both the Company and the environment. Rising Raw material quality are increasing single supplier to minimize risk exposure.Material Costs costs. ·Collaborating with Suppliers: Assist suppliers in enhancing their risk resilience.·Establishing Emergency Inventory: Maintain

2.3.3 RISK MANAGEMENT stockpiles of key raw materials to handle

short-term supply disruptions.To effectively tackle climate change the Company has established a comprehensive climate change risk management system to identify ·Developing a Climate Strategy: Set climate

and assess both physical risks and transition risks. To mitigate these risks Jihong has developed targeted response measures and action goals and integrate them into corporate strategy.implemented key actions accordingly. This includes emergency plans for floods typhoons and severe pollution events ensuring ·Stakeholders are demanding ·Enhancing Information Disclosure: Publish regular climate action reports and ensure

preparedness and minimizing potential losses. Negative stronger climate action. Failing to transparency through public oversight.Publicity meet these expectations could ·Participating in Industry Initiatives: Engage in

harm the Company’s reputation. industry climate action initiatives to enhance corporate influence.·Engaging with Stakeholders: Maintain open

JIHONG GROUP’S CLIMATE RISK IDENTIFICATION AND RESPONSE communication address concerns proactively

and improve transparency.Types of Risks Risk Description Countermeasures ·Conducting Risk Assessments: Evaluate the

Increase in impact of extreme weather and implement

·Growing industry awareness is Frequency

Low-carbon ·Setting Carbon Reduction Targets: Establish and Intensity ·Severe weather conditions can

emergency response plans.driving stricter carbon emissions

Policy short-term and long-term emission reduction of Extreme damage operational assets disrupt

·Strengthening Infrastructure: Reinforce

quotas and increasing carbon cost targets with a detailed roadmap. Weather business activities and pose safety factories warehouses and other facilities to Requirements pressures. Events such ·Investing in Low-Carbon Technologies: Adopt as Typhoons risks for employees. enhance disaster resilience.·Compliance costs for carbon energy-efficient equipment and renewable Storms ·Enhancing Employee Training: Equip

Tightening Floods and emission control are rising requiring energy to reduce emissions. employees with the necessary skills to respond

Regulatory Droughtscarbon audits and the phase-out of ·Participating in Carbon Trading: Offset a effectively to extreme weather conditions.Requirements high-energy-consuming equipment. portion of emissions by purchasing allowances Climate ·Increased energy consumption in

through the carbon trading market. Change and factories and offices leads to rising ·Develop a climate change emergency

·Disruptions in supplier production ·Strengthening Carbon Management: Establish

Litigation Risk Rise in energy costs. response plan and mitigate risks by purchasing can impact raw material supply and a carbon management system conduct regular

Response Average ·Reduced employee productivity insurance to minimize potential losses.delay product delivery. emission audits and refine reduction strategies. Temperature resulting in higher labor expenses.Technology and Market Risks Reputational Risks Acute Risks Chronic Risks

Transition Risks Physical Risks

Policy Risks

Transition Risks2.3.4 INDICATORS AND TARGETS BIODIVERSITY PROTECTION MANAGEMENT PROCESS

Raw Material

Procurement Stage: Assess potential biodiversity risks linked to sourcing endangered or protected raw materials.Jihong Group has established clear climate change-related indicators and targets to track and accelerate progress in carbon reduction Production Process Stage: Evaluate how energy consumption and pollutant emissions during manufacturing affect local ecosystems and biodiversity.and sustainability. The Company aims to reach peak carbon emissions within five years and cut emissions by around 5% annually. As

Transportation Stage: Analyze the environmental impact of fuel consumption and exhaust emissions as well as how part of its long-term strategy Jihong plans to transition all fuel-powered forklifts in its production facilities and warehouses to electric transportation activities disrupt roadside ecosystems.models by 2030 supporting its carbon peaking and neutrality goals. To ensure transparency the Company regularly publishes Waste Disposal Stage: Identify risks related to improper disposal of solid waste and wastewater which can harm soil water bodies and air biodiversity.greenhouse gas emission data. In 2024 Jihong successfully completed carbon audits for all 10 factories.Optimizing Raw Source materials from sustainable suppliers avoiding those linked to endangered or

Material Procurement: protected species. Work closely with suppliers to promote eco-friendly procurement practices.JIHONG GROUP’S GHG EMISSIONS Improving Production Improving Production Processes: Adopt energy-efficient technologies and environmentally Processes: friendly equipment to reduce energy consumption and pollutant emissions.Green Transportation Green Transportation Management: Optimize transport routes to improve efficiency and

Management: reduce fuel use. Encourage the transition to new energy vehicles to lower transportation-re-

Indicator Unit 2024 lated environmental impact.Enhancing Waste Enhancing Waste Management: Establish and improve solid waste and wastewater treatment

Management: facilities to ensure compliant discharge. Promote waste classification recycling and

resource recovery to reduce environmental strain.Scope 1 GHG emissions tCO2e 6362

Purchase environmental liability insurance to cover potential compensation costs if

Insurance Strategy:

Scope 2 GHG emissions tCO2e biodiversity damage occurs due to environmental pollution.29357

Partnerships and Establish clear environmental responsibility agreements with suppliers customers and

Agreements: business partners to reinforce biodiversity protection across the supply chain.Scope 1 + Scope 2 GHG emissions tCO2e 35719

Financial Reserves:

GHG emissions intensity tCO2e/RMB 1 million of revenue Set aside environmental risk reserves to cover potential costs related to biodiversity damage.6.46 Adjusting Business Modify business strategies as needed to mitigate the impact of risks on business performance.Strategies:

Developing Environmental Implement rapid response protocols for environmental incidents. Conduct regular emergency

Incident Emergency Plans: drills to ensure employees are prepared to handle biodiversity-related emergencies effectively.Conduct regular environmental audits to evaluate the effectiveness of risk management

Establishing an Internal efforts. Use audit findings to refine management policies and operational procedures for

Audit System:

2.4 BIODIVERSITY continuous improvement.

Monitoring and Evaluation Continuously assess production and operational activities to identify potential biodiversity

Mechanism: risks early. Implement an environmental monitoring system to track wastewater waste gas and solid waste emissions in real-time and through scheduled evaluations.Provide ongoing biodiversity protection and environmental risk management training to

Jihong Group complies with the Environmental Protection Law of the People’s Republic of China the Forest Law of the People’s Employee Training: strengthen awareness and risk management capabilities. Hold at least one training session

per year ensuring employees understand and apply relevant policies and best practices.Republic of China the Law of the People’s Republic of China on the Protection of Wildlife the Regulations of the People’s Republic

of China on Wild Plants Protection the Law of the People’s Republic of China on Environmental Impact Assessment and other

relevant laws and regulations to standardize biodiversity protection processes. Before starting new projects the Company conducts Jihong Group fulfills its environmental responsibilities by implementing various measures across its production and operational sites.environmental assessments to evaluate potential ecological risks. These assessments follow a structured risk management framework By treating wastewater and waste gas and managing noise pollution the Company has significantly improved environmental quality

that includes identification mitigation transfer acceptance and control aiming to minimize biodiversity-related impacts. Based on both within its facilities and in surrounding areas. Additionally initiatives such as afforestation effectively contribute to local biodiversi-

assessment results Jihong adjusts factory management policies and practices continuously refining its approach to biodiversity ty conservation. By actively participating in ecological protection and restoration efforts Jihong Group has enhanced its corporate

conservation and sustainable development. social image and public recognition.Risk Risk Risk Risk Risk

Identification Mitigation Transfer Acceptance Control3 SOCIAL: GIVING BACK TO SOCIETY

Quality Control

Department

Jihong Group actively fulfills its social responsibilities by continuously improving product quality and customer service in the

e-commerce and packaging industries. At the same time the Company prioritizes employee rights talent development and

sustainable supply chain management. Through deep involvement in public welfare initiatives Jihong strives to contribute to a more

Quality Control

sustainable and harmonious society. Manager

3.1 PRODUCT RESPONSIBILITY

Quality Control System

Manager Specialist

Guided by the corporate philosophy of“ surviving with quality and developing with credit” Jihong places product quality and safety at

the core of its operations. The Company continuously refines quality standards and enhances product reliability to deliver high-quality Raw and Auxiliary

Process Inspector Shipment Inspector

products and services to consumers. Materials Inspector

3.1.1 QUALITY MANAGEMENT

In 2024 all 10 production bases obtained ISO 9000 Quality Management System and SEDEX-4P certifications. Additionally 2 production

bases received BRCGS A+ grade certification 1 production base received BRCGS A grade certification and 5 production bases complet-

Jihong Group strictly complies with the Law of the People’s Republic of China on Product Quality and other relevant laws and ed FSC certification.regulations. Based on its operational needs and to ensure rigorous quality control the Company has established a quality

management system and formulated over 30 internal management policies and procedures including Quality Risk Assessment and

Control Procedures Glass and Fragile Items Control Measures and Product Recall and Simulated Recall Control Procedures. The

Quality Control Department oversee key stages throughout the product lifecycle ensuring compliance with quality standards and

customer expectations. In 2024 the Company reported zero product recall incidents.QUALITY AND SAFETY POLICIES AND OBJECTIVES（QUALITY MANAGEMENT SYSTEM）

Leadership

Quality

and Guiding Documents：Documents providing overall information about the

Safety organization’s QMS to internal or external parties

Manual

Management

Procedural

Documents Implementation Documents：Documents used to control processes

Third-Level Documents Execution

Work Instructions Inspection

Procedures and Standards Operational Documents：Documents specifying work instructions

for task execution

On-Site Activities

Quality Records Verification Documents：Documents serving as evidence

that products meet requirements and that the system

operates effectively （System Certification Certificates）

Quality Management

Structure

Quality PlanJihong Group is committed to enhancing quality management through digitalization ensuring efficient and transparent oversight from

production to delivery. The Company has implemented a one-code-per-box labeling system creating a closed-loop management PRODUCT QUALITY HONORS

process for precise product traceability and efficient inventory control. This system strengthens quality refinement and provides

customers with greater product assurance.In 2024 the packaging for Xiaokuihua Probiotic Powder won the first prize at the 2024 Xiamen Printing Product

Quality Competition while the Beichang Goat Milk Powder Box received the third prize.

1 Label Serial Number

·Control from the source by designing labels;

·Manage the number of printed labels through serial number control.ONE-CODE-PER-BOX

LABELING CLOSED-LOOP

MANAGEMENT PROCESS

Label Printing 2

·Determine the application quantity based on the plan;

·Conduct first-piece verification of label printing;

·Print labels according to the planned quantity;

·Handover the printed labels and record the details in the

Trophy from the 2024 Xiamen Printing

Label Printing Application Record Form. Product Quality Competition

3 Label Application In 2024 the Xiaogan factory was honored with the“ Quality Leap Award” at the important customers Supplier Quality

·Conduct first-piece verification again during machine production and

Forum.send it to the designated Wechat group for supervision.·Plan label usage by pallet during machine operation ensuring a

step-by-step closed-loop process.

4 Label Verification

·At the end of each shift the machine operator team leader and QC conduct a Quality Leap Award

three-party verification of label quantities to ensure closed-loop management.-18-In the paper-based FMCG packaging solutions business segment the Company held a special meeting on metal foreign object control

QUALITY MANAGEMENT MEASURES to strengthen incoming material inspection standards. The Company also addressed issues related to large-area and high-color-content

packaging paper discoloration and launched a foreign object elimination initiative to further enhance packaging quality.Jihong Group upholds strict quality control standards across its products and services. Recognizing the unique demands of its QUALITY MANAGEMENT MEASURES FOR PAPER-BASED

cross-border social e-commerce business and paper-based FMCG packaging solutions the Company implements practical and FMCG PACKAGING SOLUTIONS BUSINESS

effective measures to ensure high-quality development and deliver premium products and services to customers.Special Meeting on Metal Foreign Object Control

The Company has established a full-cycle product quality management system covering “sourcing-warehousing-logistics” to

safeguard product quality and customer satisfaction in its cross-border operations. During the sourcing Phase products undergo a Standardized the configuration

comprehensive evaluation based on quality market adaptability and consumer demand before selection. In the warehousing and coverage scope of metal

management stage strict quality control initiatives are implemented to maintain product integrity and safety. Regarding logistics detection equipment and

successfully prevented eight

management the Company enforces strict supply requirements for carriers ensuring that products remain in optimal condition incidents related to metal foreign

throughout transportation. objects.QUALITY MANAGEMENT MEASURES FOR Enhancing Standardization of Incoming

CROSS-BORDER SOCIAL E-COMMERCE BUSINESS Material Inspection

·Standards and Sample Specifications: Develop technical standards and a sample

catalog to regulate material quality and consistency.·Standardization of Measurement Methods: rain personnel on testing protocols for

Product Selection Warehousing Management Logistics Management different materials to ensure accurate and reliable laboratory results.·Standardization of Records: Establish structured experimental record forms to

enable real-time monitoring of incoming material test results.·Additional Adhesive Solid Content Testing: Establish standardized testing methods

for adhesive solid content.·Monitoring of Base Paper Moisture Content: Purchase a halogen moisture analyzer to track moisture levels in base paper.·Standardization of Base Paper Tear and Folding Resistance Testing: Define sampling dimensions and testing methods to prevent

fiber-related paper breakage during production.Improvement of Large-Area and High-Color-Content Packaging Paper Discoloration

* Inbound Inspection: Follow strict ·Evaluate potential risks based on the customer’s design layout * Existing Product Selection: * Supply Requirements:

receiving procedures conduct and develop targeted improvement plans.Selectors choose products Logistics suppliers must

unpacking inspections and accept ·Check anilox roller line count and ink formulation during from inventory and input provide high-quality air and

goods only if they meet company proofing ensuring pH value and viscosity stay within the details such as weight land transportation routes and optimal range.volume acceptance rate and quality standards. meet established standards for

* Storage Conditions: Follow ·Adjust drying airflow and temperature to 40-50°C accelerating media links. handling customer complaints.* New Product Selection: proper storage principles—heavy

water vapor release and enhancing drying efficiency.* Transportation Management: ·Successfully produced two high-ink coverage products with zero

Selectors input pricing policies items at the bottom light items on The logistics department

top; large items at the bottom customer complaints regarding discoloration.and promotional strategies oversees supplier

then submit selected products small items on top—to prevent management while the

to designers for webpage damage. customer service team handles

design. * Quality Inspection: Conduct

Foreign Object Elimination Initiative

logistics coordination

* Review Mechanism: Product daily weekly and monthly quality ensuring compliance with

selection team leaders review and quantity checks maintain transportation management Conducted two dedicated months (May and October) focused

categories to ensure they meet strict inventory supervision. procedures. on foreign object elimination achieving significant GMP

market demand and quality * Smart Applications: Develop a improvements. Customers recognized on-site GMP standards as

standards. warehouse management app for

intelligent inventory control. “World Class” with zero foreign object-related complaints

throughout the year.Improvement of Configuration of Metal

Packaging Paper Detection Equipment

Discoloration Issues

Standardization Figure: Foreign Object

Measures for Incoming Elimination Initiative

Material InspectionQUALITY CULTURE DEVELOPMENT CASE：JIHONG GROUP HOSTS TECHNICAL ROUNDTABLE MEETING

Jihong Group places great emphasis on quality culture development. Daily quality meetings reinforce standards while regular training In November 2024 Jihong Group organized a technical roundtable meeting with industry-leading enterprises

sessions help employees stay engaged and aware. The Company also provides QES internal auditor training to strengthen quality bringing together expertise to conduct in-depth discussions on BP solutions. The meeting aimed to develop

management. Beyond internal efforts Jihong hosts technical roundtable meetings with industry peers encouraging collaboration and forward-thinking and practical quality improvement strategies while advocating for industry-wide implementa-

shared development. tion driving high-quality development across the sector.Daily Quality Meetings

The Company has established a daily quality

meeting system requiring participation from both

day and night shift personnel. These meetings

communicate issues from the previous day key

quality control focuses and requirements for new

products along with hands-on training. This

initiative enhances the judgment interception

and prevention capabilities of all quality team

members. In 2024 QC intercepted 9 Category A

anomalies and 13 Category B anomalies.Company-Wide

Training

The Company has designated

every Tuesday as Factory-Wide

Quality Training Day to enhance

employees’ understanding of

quality and sense of

responsibility. Throughout the

year 31 training sessions were

conducted focusing on reviewing quality anomalies across departments analyzing root causes implementing corrective actions

and reinforcing GMP standard management in production workshops.QES Internal

Auditor Training

The Company organized QES

internal auditor training for all

subsidiaries ensuring that each

participant thoroughly understood

and mastered QES internal audit

provisions and knowledge. A total

of 115 employees participated in

the training achieving a 100%

pass rate. Technical Roundtable Meeting

-20-The Company adopts a systematic and multi-level training program to enhance the skills and service quality of its customer service

3.1.2 CUSTOMER SERVICE team. Training covers organizational roles job functions and project-specific requirements ensuring employees understand their

responsibilities and how they contribute to the overall workflow. This approach strengthens team coordination and improves customer

Jihong Group consistently embraces “customer centricity” ensuring a smooth and satisfying experience at every stage from response times leading to a better service experience.pre-purchase to post-use.To achieve this the Company has established internal policies such as the Customer Service Process Management Procedures and

the Customer Maintenance Management System. These frameworks create a well-defined communication process across pre-sales INNOVATIVE SERVICES

in-sales and after-sales ensuring customer needs are met while continuously improving service quality and satisfaction.ENHANCING USER SERVICES Jihong Group prioritizes localized services introducing targeted initiatives to improve service quality and customer satisfaction. The

Company conducts in-depth research on cultural customs lifestyles and values across different markets using these insights to

develop precise sales strategies and tailor localized product offerings that align with regional tastes cultural nuances and seasonal

Jihong Group continuously improves the user service experience through platforms like ShopPlus intelligent marketing tools and demands. To ensure compliance Jihong strictly follows local laws and regulations governing product distribution and sales. In

service quality management systems. The Company has established the Giikin Customer Operations After-Sales Service Policy which after-sales support the Company enhances the customer experience by offering local-language support region-specific return and

defines the return and exchange process ensuring a transparent and hassle-free resolution for customers. To address customer exchange policies and localized payment options. These efforts boost consumer trust drive sales growth and strengthen Jihong’s

refusals the Company conducts daily follow-up surveys to analyze the underlying reasons and develop targeted improvement position in the global market.strategies. By actively gathering and applying feedback Jihong aims to enhance the overall shopping experience.Return and Negotiation Based onUnderstanding Customer Return and SATISFACTION SURVEY

Exchange Standard Return andCustomer Needs Exchange Reminder

Process Exchange Procedures

Jihong Group has established an efficient communication and feedback system to maintain close relationships with customers.To navigate rising competition and market shifts Jihong Group has expanded its services by enhancing packaging creative design

offering customer training materials introducing rapid prototyping equipment and delivering superior services to customers.During the reporting period we received a total of 37 customer complaints all of which were effectively resolved

Packaging Customer Introduction achieving a 100% resolution rate. Regular satisfaction surveys help gather insights on products services and

Creative Design Training of RapidMaterials Prototyping overall collaboration allowing the Company to create long-term value for its clients. Through unremitting efforts Services Services Equipment our customer satisfaction reached 95.83%.The Company provides The Company provides industry The Company has introduced

customers with a variety of insight training materials to rapid prototyping equipment In the cross-border social e-commerce sector Jihong Group has developed a systematic customer feedback mechanism to enhance the

innovative packaging solutions. help customers stay ahead in to shorten on-machine

The process begins with market packaging trends. For yogurt shopping experience. Daily surveys collect feedback across key areas including product quality packaging logistics and delivery sampling time enabling

research analyzing common packaging research is faster and more precise services. By comprehensively understanding customers’ genuine experiences and analyzing this data Jihong gains a clear understand-

product display methods conducted across four key printing tests for optimal

structural packaging designs areas: yogurt characteristics results. It also provides ing of customer experiences and expectations. This enables the Company to identify areas for improvement implement targeted

and promotional strategies used and packaging transportation technical parameters for

by beverage brands. Through customer packaging product optimizations and quickly resolve concerns consistently earning high customer satisfaction ratings.sample printing reducing

brainstorming sessions the inventory domestic market machine adjustments and

team selects the most creative research insights and setup time. This improve-

practical and user-friendly international packaging market ment enhances operational In the paper-based FMCG packaging solutions sector Jihong Group conducts comprehensive customer follow-ups and satisfaction

concepts for development. analysis. These insights help efficiency delivering a more

During the design phase businesses accurately surveys in accordance with the Customer Maintenance Management System. The survey evaluates key areas such as overall streamlined and convenient

multiple user groups test the understand consumer demands service for customers. impression service quality product quality innovation technical support delivery performance and pricing ensuring a holistic

prototypes focusing on their in a highly competitive market

functionality and feasibility. enabling them to create more assessment of customer satisfaction. During the survey Jihong gathers detailed customer feedback identifies areas for improvement

Their feedback is incorporated attractive and competitive

into refinements before the final product packaging solutions. and analyzes the underlying reasons behind any dissatisfaction. Targeted improvement measures are then swiftly implemented to

physical prototypes are enhance collaboration and service quality.produced.Project Type Specific Measures

USER EXPERIENCE ENHANCEMENT MEASURES FOR PAPER-BASED

FMCG PACKAGING SOLUTIONS BUSINESS3.1.3 INFORMATION SECURITY INFORMATION SECURITY MANAGEMENT MECHANISMJihong Group adheres to a“ security and prevention first balancing management and technologies and taking comprehensivemeasures to prevent risks” approach. Recognizing information security as a cornerstone of stable operations and long-term sustainabil-

Utilize advanced risk identification tools and methods to systematically

ity the Company continuously enhances its network security framework and reinforces protective measures to safeguard customer Risk Identification detect internal and external information security risks.privacy and sensitive data. Risk Management

Risk Assessment Apply scientific assessment models to quantify risks evaluating their

Mechanism severity and likelihood for accurate risk management.INFORMATION SECURITY MANAGEMENT SYSTEM Risk Response Develop targeted response strategies based on risk assessments ensuring swift and effective actions when threats arise.Jihong Group places great emphasis on information security and has established a scientific comprehensive and efficient information

security management system. The Board of Directors and executive management team play an active role in cybersecurity oversight

ensuring that information security is integrated into strategic planning. The executive management team is responsible for executing

Implement multi-factor authentication including username/password

security policies set by the Board actively participating in the Information Security Committee and coordinating cross-departmental Identity Authentication fingerprint recognition and facial recognition to verify user identities

security efforts. Additionally security progress and outcomes are regularly reported to the Board ensuring continuous oversight Access Control and prevent fraud.guidance and improvement. Mechanism Assign role-based access permissions according to job responsibilities

Access Management following the principle of least privilege to limit access to sensitive data

Jihong Group’s multi-layered and comprehensive information security management structure consists of the Information Security and critical systems.Committee Information Security Management Team Information Security Technology Team and Information Security Audit Team.Each team has defined responsibilities and works in coordination to ensure that security strategies are effectively implemented and

maintained. In 2024 the Company obtained Level 2 Security Classification Filing for third-party stores warehousing and logistics and Use high-strength encryption algorithms to secure core and sensitive data

during storage and transmission. Implement advanced key management

big data analysis information systems. Data Encryption technologies to maintain data confidentiality and integrity throughout its

Data Protection lifecycle.Mechanism Develop a comprehensive backup strategy performing full or incremental

Data Backup and Recovery backups of critical data at regular intervals. Store backups at an offsite INFORMATION SECURITY MANAGEMENT POLICIES disaster recovery center and implement a detailed recovery plan to

ensure fast and accurate data restoration in case of loss or corruption.The Company strictly complies with the Regulations of the People’s Republic of China on Protecting the Safety of Computer

Deploy a comprehensive security monitoring system to track information

Information Systems the Basic Requirements for Classified Protection of Information System Security the Requirements for Security Monitoring Security Monitoring systems network devices and user activities in real time. Detect anomalies

Information System Security Management and other relevant laws and regulations. To strengthen its network and data security and security incidents promptly triggering instant alerts for rapid response.and

framework the Company has developed a set of internal policies including the Personal Information Protection Policy Cybersecurity Conduct regular security audits to assess policy implementation

Management Policy Public Cloud Security Management Policy Customer Information Confidentiality Management Policy and Audit Mechanism Security Auditing compliance and effectiveness of the information security management

Network and Data Security Incident Management and Emergency Response Plan. These policies establish a comprehensive and system. Ensure ongoing improvements and adherence to industry standards.coordinated approach to cybersecurity and data protection.Emergency Response Team Establish a dedicated security response team with clearly defined roles and

INFORMATION SECURITY MANAGEMENT MECHANISM responsibilities to ensure efficient incident management.Emergency Develop a detailed security response plan outlining procedures mitigation

Emergency Plan strategies and role assignments. Conduct regular drills to test and refine the

Response plan for maximum effectiveness.The Company has implemented a series of scientific and effective management measures and mechanisms to enhance its information

security defense capabilities ensuring a strong reliable safeguard for corporate information security. Mechanism The emergency response team follows the emergency plan to implement Emergency Handling immediate measures notify relevant departments and coordinate efforts

for swift investigation and resolution.-22-Case: Information Security Attack and Defense Drills 3.1.4 INNOVATION AND R&D

In 2024 the Company meticulously technological advancements to strengthen its capabilities in e-commerce and packaging. In 2024 our R&D investment reached RMB

organized and conducted three rounds

of information security attack and 124.43 million.The Company focuses on emerging fields such as cross-border social e-commerce and intelligent systems creating a

defense drills. These drills simulated competitive edge in the market. At the same time Jihong remains committed to packaging solutions offering a one-stop service

penetration attacks on the Company’s system that spans planning to sales ensuring it meets the evolving needs of its customers while continuously refining its business

core business systems by external

hacker organizations focusing on ecosystem.internal network security risks and

emerging cybersecurity threats. The

exercises aimed to enhance employees’ INTELLIGENT ECOSYSTEM

practical experience in responding to

cybersecurity threats. The drills

achieved significant results across Jihong Group is actively driving intelligent transformation developing an AI-powered social e-commerce model that integrates

technical personnel and management artificial intelligence with cross-border e-commerce. By leveraging social networks big data analytics machine learning and

levels effectively strengthening the automation the Company has established a closed-loop e-commerce ecosystem. Instead of traditional product marketing Jihong

Company’s information security applies a“ goods discovering people” approach using AI-driven market analysis to build detailed user profiles and match products to

defense capabilities and improving its

emergency response preparedness. the right customers. Through intelligent product selection and precise customer segmentation Jihong effectively brings unique

Chinese products to global markets with greater accuracy and efficiency.Information Security Attack and Defense Drills

Big Data Analysis Ad Page Creation Targeted Advertising Customer Places

for Product Selection Placement an Order

The Company places great emphasis on building a strong information security culture by implementing an annual training plan

tailored to employees at different levels and roles. These targeted training programs enhance awareness and practical skills ensuring

employees can effectively protect corporate data and uphold security standards. Warehouse Shipment International Logistics Order Completion

Distribution

INFORMATION SECURITY TRAINING PROGRAM

Phishing Emails Secure Use and Protection of Office Computers Product Product Shenzhen Sign and Local International Company

Selection Procurement Warehouse Entry Payment Delivery Express Shipping Financial

Covers common phishing tactics identification Collection

Focuses on proper computer usage security protection

methods and countermeasures. Interactive

measures cybersecurity best practices personal

on-site exercises help employees recognize and

information protection emergency response and incident

respond to phishing attempts effectively.handling strengthening overall corporate security defenses.Page Design Customer Sorting and02 Service Review Dispatching Local Delivery Customer Rejection01 03

Network Virus Attacks

JIHONG GROUP’S

Explains how viruses spread how to detect them

Advertising Customer International Inbound to CROSS-BORDER E-COMMERCE

and how to prevent and recover from attacks. Placement Service Review Express Shipping OverseasWarehouse “GOODS DISCOVERING PEOPLE”

Employees take on-site tests to reinforce BUSINESS PROCESS

knowledge and improve threat prevention.-23-Jihong Group combines social media and online shopping adopting a“ goods discovering people” proactive model to create a distinct

competitive edge in marketing operations and supply chain management. SMART WAREHOUSING

Jihong Group has developed an integrated smart warehousing system leveraging digital technology to modernize traditional

JIHONG GROUP’S CROSS-BORDER E-COMMERCE SALES MODEL operations. This system boosts efficiency reduces supply chain risks and enhances the overall shopping experience for consumers.Dis Goods JIHONG GROUP’S INTEGRATED SMART HOUSING SYSTEMcove Utilize an AI-powered product selection platform to conduct r precise product selection through big data. Inventory Stocking

Data i Ac ncu gm Modelul Discovering

Leverage social networks such as Facebook Google and The implementation of the digital

TikTok as marketing channels. stocking model can significantly

Implement targeted marketing based on big data algorithms. increase warehouse turnover rates. It can reduce inventory backlog and

et ensure a smooth transition of

Mon products from the warehouse to the Traffic le People Digital Store market which significantly enhances

eop Accumulate a massive user base through the integration of

the efficiency and agility of the

P mobile internet and social networks. supply chain.Apply user-centric product selection strategies leveraging By using event tracking on our online

intelligent analysis of user profiles to precisely match store we can collect user behaviordata to better understand user needs and

product tags. preferences. This allows us to improve

our store’s user interface and shopping experience. Warehouse

In 2024 Jihong Group continued refining its e-commerce system tackling the complexities of long value chains multiple touchpoints By analyzing user behavior data our digital store Management Systemcan recommend products that are tailored to

and high digital operation demands in social e-commerce by upgrading core functional modules. With an R&D investment exceeding individual user preferences. This helps users easily

discover products they like and receive a better

RMB 100 billion the Company remains committed to AIGC using AI to enhance the entire business process covering product selection shopping experience. Our self-developed warehouse

management system implements a

marketing and advertising placement. This year it upgraded the GiiAI vertical model for intelligent e-commerce design the G-king “one product one code” management policy

intelligent advertising assistant and the ChatGiikin vertical model for e-commerce text processing driving business innovation and for all inventory items. The system allocates each item Intelligent to its designated storage location and updates the

growth. inventory records in real-time.Picking System The system is equipped with intelligent matching and

product distribution capabilities to quickly prepare

JIHONG GROUP’S INTELLIGENT MODEL UPDATES and deliver orders while reducing the risk of shipping errors.Our picking process is automated and The system can automatically intercept abnormal

intelligent. Our warehouse system orders and relevant personnel will take swift action

GiiAI: Vertical AI Model for Intelligent automatically generates the optimal to ensure the problem is resolved in a timely manner.picking path product location and

E-commerce Design and Content Generation R&D Department - G-king: Intelligent Advertising product information upon receiving an order and sends the data to the picker’s Automatic Weighing

Assistant PDA device. This system has made the System

This model integrates AI tools for video goods-picking process much more

convenient and efficient.images audio and text enabling efficient and It integrates with Jihong’s business model to Our intelligent weight and size

intelligent content creation and processing. analyze online data retrospectively and provide measurement system can rapidly and accurately assess the weight and size of

real-time insights. By combining online and offline packages and provide precise logistics

data to logistics and warehouse

data it delivers comprehensive data-driven Unpacking and management teams.ChatGiikin: Vertical AI Model for E-Commerce Text Processing decision-making support. Packing Device

Upgraded to ChatGiikin 2.0 the model now delivers enhanced capabilities optimized We use an automatic packing device to

streamline our order processing and

training data and supports multi-task text generation and refinement continuously improve the quality efficiency and

improving intelligent interaction experiences. cost-effectiveness of our packaging.Goods

lligent Pe rodnt uI ct

ization

tio

n

aIn 2024 the Company received multiple cross-border services awards highlighting GiiMall’s industry influence and outstanding

INNOVATIVE PACKAGING capabilities in the field.

2024 GIIKIN CROSS-BORDER SERVICE HONORS

Jihong Group advances its packaging business through innovation seamlessly integrating graphic design solution optimization and

marketing strategy to align with consumer needs in the FMCG market. The Company provides customized packaging solutions for

global FMCG brands including color box packaging eco-friendly food packaging color cartons eco-friendly tote bags and bundle The 4th ChinaGo Cross-Border 2024 Amazon Global Top 50 Service Providers

packaging. With a comprehensive supply chain service system Jihong delivers one-stop packaging solutions from planning to sales E-Commerce Industry“ Annual Selling“ Future Star” for Chinese EnterprisesBest Market Influence Award” Going Global

helping brands enhance their market value.JIHONG GROUP’S ONE-STOP PACKAGING SERVICES

Design/Plan Transportation and

Marketing Planning Manufacturing Sales

Optimization Distribution

INNOVATIVE COLLABORATION

INTELLIGENT ECOLOGY The Company upholds the core values of“ responsibility innovation and achievement” integrating cutting-edge research partnerships

and working closely with team partners and stakeholders. By promoting technological exchange resource sharing and collaborative

Jihong Group has developed GiiMall a professional cross-border e-commerce SaaS platform enabling brands to expand globally with innovation the Company contributes to shaping the future of the industry.intelligent one-stop solutions by using advanced data analytics and diverse online channels. In 2024 GiiMall further increased its R&D The Company further deepened industry-academia collaboration establishing industry-university-research cooperation bases with

investment continuously optimizing system functionalities and upgrading core modules including the GiiMall ERP Logistics Wuhan University Beijing Institute of Graphic Communication and Hunan University of Technology. These partnerships drive

Management System GiiMall Snapchat Intelligent Placement System GiiMall Product Selection System GiiMall Financial Analysis technological advancements and support high-end talent development ensuring sustainable industry development. During the

System GiiMall Address Service System and GiiMall Combination Promotion System. These improvements provide smarter more reporting period we collaborated with Hubei Engineering University to enhance the drying temperature control device in optical cable

efficient operational support ensuring seamless expansion for cross-border merchants. production improving precision and intelligence in manufacturing processes.Case: Collaboration Between Hubei Engineering University and VStar Packaging (China) Limited on

Optical Cable Drying Temperature Control Device Enhancement

GIIMALL INTELLIGENT SOLUTIONSFrom February 2023 to December 2024 Jihong Group collaborated with Hubei Engineering University on the“ Modificationand Development of Drying Temperature Control Device in Optical Cable Production” project. Addressing the challenges of

01 02 low drying efficiency and high energy consumption in optical cable production Hubei Engineering University developed an

innovative drying machine equipped with a drying chamber and dewatering unit. This equipment features precise drying

power control and high-efficiency dewatering achieving a temperature control accuracy of ±1°C operating with a power

Expanding Multi-Channel Online Sales System Intelligent Data Analytics Tools supply of 2KW and seamlessly integrating into the existing production line without interference. The project outcomes have

enhanced Jihong Group’s production efficiency reduced energy consumption and demonstrated the Company’s

GiiMall is actively developing a social Powered by AI and big data technologies GiiMall commitment to innovation and sustainable development setting a benchmark for the industry.e-commerce ecosystem that enables merchants analyzes buyer behavior patterns providing

to efficiently connect with target users. The merchants with deep business insights to Furthermore leveraging its extensive experience in the packaging and printing industry the Company actively contributes to the

platform syncs product information across major optimize decision-making. The platform operates development of industry standards driving industry innovation and upgrading. In 2024 the Company participated in the formulation

social media channels and provides a centralized on a shared infrastructure reducing reliance on

operations dashboard allowing merchants to independent hardware and improving of the Assessment Requirements for Quality Grading and Forerunner—Bundle Packaging providing corporate expertise and

manage multiple sales channels seamlessly and operational efficiency. professional recommendations to promote standardized industry development.coordinate omnichannel operations.-25-3.2 SUPPLY CHAIN MANAGEMENT

Jihong Group places great emphasis on sustainable supply chain development implementing strict supplier lifecycle management

INTELLECTUAL PROPERTY PROTECTION through policies such as the Supplier Management Procedures Procurement Management Procedures Centralized Procurement

Management Measures and Sunshine Integrity Action Cooperation Agreement. The Company integrates ESG requirements into its

supplier management system conducting regular ESG risk assessments to enhance supplier capabilities. Jihong also maintains an

Jihong Group strictly complies with the Copyright Law of the People’s Republic of China and the Patent Law of the People’s Republic active supplier communication mechanism engaging in training and collaboration to understand suppliers' needs support mutual

of China establishing policies such as the High-Tech Enterprise Management System the Management System for High-Tech growth and reinforce its long-term sustainable development strategy.Projects and Patents and the Reward System for the Application of R&D Results. These policies form a comprehensive intellectual

property protection framework and an innovation incentive mechanism ensuring the application of R&D achievements. In 2024 the 3.2.1 SUPPLIER ADMISSION AND EVALUATION

Company filed 64 new patent applications of which 53 were approved and obtained 30 new software copyrights.The Company implements comprehensive oversight across supplier admission management and exit processes utilizing an

INNOVATION ACHIEVEMENTS assessment and evaluation mechanism. By continuously refining supplier lifecycle management the Company enhances risk identification promotes responsible procurement and strengthens overall supply chain resilience.In 2024 we made significant progress in technological innovation. SUPPLIER LIFECYCLE MANAGEMENT PROCESS

Conducts risk and integrity assessments on suppliers verifying business licenses management system

certifications production equipment product quality specifications compliance statements and inspection

reports. Only suppliers meeting the Company’s procurement standards and passing internal evaluations and

Qualified sample tracking are added to the qualified supplier list.Priority is given to ISO-certified suppliers. In 2024 Jihong screened 38 suppliers based on certification

Selected for the first batch of technology-based SMEs in Hubei Province in 2024. Admission standards including labor regulations product quality service standards and safety requirements all of whom have obtained at least one ISO system certification.Conducts regular supplier performance evaluations and classification assessing product quality and service

capabilities across the supplier lifecycle.Biannual assessments evaluate suppliers on cost quality service delivery and value-added contributions

Daily such as innovation safety and environmental protection. Optimization recommendations are provided to

Recognized as a Technology Innovation Demonstration Enterprise in Tangshan. improve supplier management.Management Suppliers are classified into five categories (A+ A B C and D) based on evaluation results. D-class suppliers (below the threshold) are disqualified while A+ suppliers (top performers) are given increased collaboration

opportunities ensuring the elimination of non-compliant suppliers.Suppliers that fail to meet assessment standards are issued a Corrective and Preventive Action Report

requiring them to submit rectification measures. If performance does not improve over three consecutive

Received one second prize and one third prize in the Henan Provincial Science and Elimination procurement cycles the supplier is removed from the qualified list procurement is halted and their supply qualification is revoked officially terminating cooperation. In 2024 the Company terminated partnerships

Technology Progress Awards. with over 100 underperforming suppliers based on assessment results.and Exit

Case:Structural Improvement Proposal for Jinze Milk Powder E-Flute Partition

NUMBER OF JIHONG Chinese Mainland

Hohhot Jihong actively addressed the issue of misalignment between customer standard drawings and the carton erector GROUP’S SUPPLIERS IN 20241

which caused severe jamming problems during production. Understanding the customer’s needs the Company dispatched 40187

technicians for multiple on-site investigations and follow-ups leading to the proposal of a structural improvement plan for Hong Kong Macau

the Jinze Milk Powder E-Flute Partition. Through continuous testing and refinements adjustments were made to the Taiwan Regions of

partition structure and after multiple rounds of validation the issue was effectively resolved. China & Overseas

1The data collection scope for the company's supplier count in

2024 includes both the packaging and e-commerce sectors. 0

-26-3.2.2 SUPPLY CHAIN ESG MANAGEMENT 3.2.3 SUPPLIER COMMUNICATION

Jihong Group continuously optimizes its sustainable supply chain strategy embedding environmental and social risk management Jihong Group has established a regular communication mechanism with suppliers fostering long-term and cooperative partnerships.into every stage of operations. The Company prioritizes partnerships with suppliers that demonstrate strong ESG performance The Company provides training programs covering quality management safety management environmental practices anti-corrup-

enforcing strict warehousing management qualification reviews periodic evaluations and audits to effectively mitigate supply chain tion policies and integrity education reinforcing sustainable business concepts and requirements. To ensure alignment with company

risks. At the supplier admission stage Jihong assesses not only product quality and supply capabilities but also conducts sustainability standards new suppliers undergo systematic training for a clear understanding of management requirements and cooperation

background checks. This evaluation covers ESG performance business ethics compliance awareness and records of corruption or processes. Additionally irregular training sessions are held to introduce updates to the supplier management system. Jihong also

bribery. To ensure a tailored approach the Company applies differentiated risk assessment standards based on supplier scale and engages in ongoing discussions with suppliers sharing insights on industry trends emerging technologies and best management

production characteristics with a focus on product quality environmental impact and employee welfare. practices. This collaborative approach strengthens trust operational efficiency and business synergy supporting the sustainable

development of the entire value chain.To reinforce ESG practices ESG-related clauses have been integrated into annual supplier contracts and agreements encouraging

greater accountability and supporting the green transformation of the supply chain. During the reporting period no major risks or In 2024 the Company actively engaged in communication and collaboration with major raw paper and material

impact events were identified within the supply chain. suppliers further enhancing its capabilities in raw material procurement production optimization and quality

control.SUPPLIER ESG MANAGEMENT REQUIREMENTS

In May the Company engaged in product discussions with ZKH

Industrial Supply Co. Ltd. covering topics such as product

characteristics usage methods troubleshooting storage and

Suppliers must provide ISO 14001 Environmental Management System Certification and demonstrate maintenance color management process adaptability and the

strong environmental management practices. Preference is given to suppliers using eco-friendly latest product applications. This exchange deepened mutual

materials and energy-efficient production processes such as biodegradable packaging or optimized understanding of the products and laid a solid foundation for

improving collaboration efficiency.energy consumption.Suppliers must provide ISO 9001 Quality Management System Certification and implement strict

quality control measures to minimize resource waste caused by quality defects. In August the Company engaged in discussions with TEX YEAR

GROUP on a green materials strategy cooperation platform

focusing on ESG practices and achievements the R&D and

application of green products and their advantages in carbon

Suppliers must obtain ISO 45001 Occupational Health and Safety Management System Certification reduction and environmental protection. Both parties

and undergo assessments on worker safety measures. Preference is given to those with strong conducted in-depth exchanges on product classification

occupational health and safety management. performance differences storage and usage considerations as

well as analysis and solutions for common issues. This

collaboration enhanced mutual understanding and application

Chemical suppliers must provide a Hazardous Chemicals Business License Environmental and of green materials contributing to the sustainable

Safety Assessment Report Chemical Safety Data Sheets and Compliance Declarations. development of the industry chain.Suppliers must sign the Sunshine Integrity Action Commitment Letter and comply with the In October the Company engaged in discussions with

Qingdao Rongxin Industry & Trade Co. Ltd. on

Sunshine Integrity Action Cooperation Agreement. lamination processes conducting in-depth exchanges

on machine structure working principles and process

Suppliers must adhere to fundamental laws and regulations explicitly prohibiting corruption and handling at various stages. This collaboration provided

bribery in contracts. strong support for optimizing production processes

and improving product quality helping to enhance

production efficiency and market competitiveness.Implements transparent procurement processes and conducts regular audits to mitigate corruption

risks within the supply chain.Health and Safety

Environmental Protection and Compliance Management

Quality Control and Anti-Corruption3.3 HEALTH AND SAFETY

Jihong Group upholds a“ people-oriented safety-first prevention-focused and comprehensive management” approach implement-

ing structured initiatives to ensure workplace safety and occupational health. The Company is committed to fostering a safe healthy JIHONG GROUP’S 2024 WORK SAFETY DAILY MANAGEMENT MEASURES

and comfortable work environment through proactive safety measures. In 2024 the Company released the 2024 Safety and

Environmental Management Work Plan setting clear work safety goals to ensure that occupational health and safety protocols are

effectively implemented throughout the year.Optimization of Safety Safety Policy Learning and Investigation of Major Emergency Plan

Regulations and Systems Training Programs Accident Hazards Development and Drills

Jihong Group has Jihong conducts regular Jihong Group conducts Jihong Group has

3.3.1 WORK SAFETY comprehensively updated company-wide safety monthly self-inspections and established a comprehen-safety regulations to align training sessions covering corrective actions to sive emergency response

with national laws industry regulations operating proactively identify and system to address incidents

standards and operational procedures and emergency eliminate potential hazards. such as fires mechanical

needs. The revisions include response protocols. Training In accordance with the failures electric shocks and

The Company strictly complies with the Work Safety Law of the People’s Republic of China and other relevant laws and regulations new equipment operation is delivered through Standards for Determining natural disasters. These

guidelines and special theoretical instruction the Potential Risks of Major plans are regularly reviewed by establishing a comprehensive safety management framework. The Company has developed policies such as the Production Safety working environment on-site demonstrations and Accidents of Enterprises the and updated to comply with

Management System the Comprehensive Contingency Plan for Workplace Accidents the Safety Risk Classification and Control protection measures case analysis to strengthen Company focuses on key current regulatory

ensuring full safety coverage employees’ safety areas facilities equipment requirements. To strengthen

Hidden Danger Investigation and Management System and the Fire Safety Management System. These regulations clearly define across all production awareness. Monthly safety and processes analyzing preparedness full-scale

processes. Each department knowledge updates invite emergency drills are safety responsibilities for construction-related entities standardize safety and civilized inspection criteria and enforce strict measures hazard causes corrective and position has clearly industry experts to interpret measures and challenges to conducted every six months

to prevent violations and unsafe practices ensuring the effective implementation of safety responsibilities. defined responsibilities regulations and analyze ensure early risk mitigation. covering fire response

supported by a Work Safety real-world accident cases. The Company assesses and alarm activation

Responsibility List. By signing Additionally specialized skill categorizes hazards based on evacuation and coordinated

responsibility agreements training is provided for risk levels then applies emergency actions.Jihong has implemented a specific roles such as targeted control measures. Additionally special

SAFETY MANAGEMENT SYSTEM comprehensive accountabili- electrical safety and special High-risk issues are tabletop drills are held to

ty system ensuring both equipment operation addressed first ensuring enhance interdepartmental

horizontal and vertical ensuring employees have the safety resources are coordination ensuring a

coverage across all levels of practical skills needed for allocated efficiently. swift and effective response

the organization. safe operations. in critical situations.Under the Work Safety Responsibility System Jihong has established a Work Safety Management Committee to oversee occupational

health and safety. This system standardizes personnel safety management and occupational disease prevention while clearly outlining

the responsibilities of supervisory and construction units. These measures provide strong support for maintaining a safe regulated

and well-managed work environment. Case: Safety Emergency Drill Activities

In 2024 Jihong Group actively conducted safety emergency drills to enhance employees’ response speed and handling

JIHONG GROUP WORK SAFETY PERFORMANCE IN 2024 capabilities in unexpected situations. By simulating real-life scenarios the drills ensured that employees could quickly and effectively implement emergency measures safeguarding employee safety in critical situations.Number of work-related Work-related fatality Lost workdays due to Investment in work

fatalities rate work-related injuries safety measures

0people 0% 1857days RMB4.6652million

We have incorporated safety management into performance assessments developing incentive and accountability mechanisms to

continuously improve safety standards. The evaluation system includes annual and monthly safety assessments combining quantita-

tive and qualitative methods to measure incident rates management effectiveness and performance-based incentives. Based on the

annual safety management objectives the Company formulates the Annual Safety Management Objective Responsibility Agreement

ensuring that departments and personnel at every level sign safety objective responsibility agreement.The Huanggang Factory

The Luanzhou FactoryRELATED PARTY SAFETY MANAGEMENT Case:“ Work Safety Month” Activity

The Company has formulated the Related Party Safety Management System to strengthen the review and management of contractors In June 2024 Jihong Group together with its subsidiary production sites launched the“ Work Safety Month” campaign underand suppliers working together to build a stable supply chain. The Safety and Environmental Department oversees contractor safety the theme“ Everyone Talks about Safety Everyone is Capable of Emergency Response - Keeping the Life Channels Unobstruct-management while the Procurement Department facilitates safety communication and coordination. Together they have established ed.” Through promoting safety culture the campaign aimed to enhance employees’ awareness of workplace safety reinforce

a comprehensive contractor lifecycle safety risk management system. All contractors must sign the Safety Management Agreement compliance with safety regulations and improve overall safety management standards. By conducting this initiative the

and complete mandatory safety training clearly outlining occupational safety responsibilities and work requirements. These measures Company systematically identified and mitigated potential accident risks contributing to the long-term stability of workplace

help minimize safety risks and maintain compliance. In 2024 Jihong Group recorded zero occupational safety incidents involving safety and ensuring the smooth operation of production and business activities.contractor employees.The Jinan Factory

SAFETY CULTURE CONSTRUCTION

The Company places great importance on safety culture development integrating safety education into daily operations through its

Safety Education and Training System. By conducting regular safety training programs the Company continuously enhances

employees’ safety awareness and professional skills. Additionally for key position employees specialized safety management training

is provided to further strengthen safety management capabilities.In 2024 the Company conducted multiple safety training sessions across all production sites covering topics such as solid waste

classification and disposal hazard identification special equipment use workplace safety laws and safety management for

specialized operations. By combining theoretical instruction case analysis and hands-on training Jihong ensures that safety protocols

are effectively implemented maintaining a secure workplace and stable production environment.The Xiaogan Factory

Case:“ Fire Prevention Publicity Month” Activity

In November 2024 Jihong Group launched the“ Fire Prevention Publicity Month” campaign under the theme“ Fire Safety forAll Life is Supreme.” A series of diverse activities were organized including awareness education on-site drills and hazard

The Langfang Factory

inspections effectively enhancing employees’ fire safety awareness and emergency response capabilities. This initiative

contributed to ensuring stable and orderly company operations creating a safe environment that supports the Company’s

long-term sustainable development.The Anhui Factory

The Xiamen Factory

The Hohhot Factory3.3.2 OCCUPATIONAL HEALTH AND SAFETY JIHONG GROUP’S EMPLOYEE OCCUPATIONALHEALTH OVERVIEW IN 2024

Jihong Group strictly complies with the Law of the People’s Republic of China on Prevention and Control of Occupational Diseases

and other relevant regulations formulating the Occupational Health Management System and implementing international occupation-

al health and safety management standards. The Company has established an Occupational Disease Prevention Task Force to enhance 739People 766People 0People RMB 709.5thousand

its health and safety management system. In 2024 Jihong introduced the Occupational Hygiene Management System which covers

occupational disease prevention hazard warnings protective facilities and health monitoring further standardizing workplace health

management and reducing employee risks. Number of Employees Number of Employees Number of Employees Occupational Health

in Occupational Disease Participating in Occupational Diagnosed with and Safety Investment

Risk Positions Health Check-ups Occupational Diseases Amount

The Company regularly conducts ISO 45001 Occupational Health and Safety Management System audits management reviews and

third-party supervision audits to ensure its occupational health and safety system remains effective and compliant. Any identified

issues are promptly addressed to maintain high standards. As of the end of the reporting period 9 out of 10 factories have obtained ISO Case : Occupational Health Training

45001 certification.

In 2024 the Company conducted

multiple occupational health training

sessions covering topics such as

understanding occupational diseases

heatstroke prevention in high

temperatures and occupational

hygiene knowledge. These sessions

promoted awareness of occupational

disease prevention laws regulations

and protective measures. Through

thematic lectures and case studies the

training enhanced employees’

occupational health literacy

strengthened self-protection

awareness and contributed to the

development of a health-conscious

workplace.AS OF THE END OF THE REPORTING PERIOD 9 FACTORIES HAVE

OBTAINED ISO 45001 CERTIFICATION. Occupational Health Thematic

Training Courses

To safeguard employees’ occupational health the Company conducts regular health training to enhance self-protection awareness.The Company also provides annual health check-ups with specialized medical examinations for employees in high-risk positions

reinforcing workplace health protection. In accordance with the Regulations on Work-Related Injury Insurance Management the

Company ensures that employees’ rights are safeguarded in the event of work-related injuries. This includes timely medical

treatment and financial compensation promoting a safe and healthy work environment.ISO 45001 Occupational Health and

Safety Management System Certification3.4 TALENT DEVELOPMENT

Jihong Group actively fosters a diverse inclusive and progressive corporate culture prioritizing employee rights and professional

well-being. The Company implements an inclusive talent strategy and has established a comprehensive talent development system Case:“ Hongyu Program” Management Trainee Recruitment Project

ensuring that employees’ career growth aligns with corporate goals. By focusing on talent acquisition and retention Jihong supports

individual development while driving shared success for both employees and the Company. In 2024 Jihong Group officially launched the

“Hongyu Program” Management Trainee

Recruitment Project conducting campus

3.4.1 DIVERSITY EQUALITY AND INCLUSION recruitment during both the spring and autumn

hiring seasons at multiple industry-focused

universities including Southwest Jiaotong

Jihong Group adheres to compliant employment practices fostering a diverse and inclusive corporate culture. The Company strictly University Hunan University of Technology and

complies with the Labor Law and the Labor Contract Law of the People’s Republic of China continuously refining internal policies Beijing Institute of Graphic Communication. This

initiative provided students with valuable career

to uphold equal treatment and opportunities for all employees. Through the Cooperate Social Responsibility (CSR) Management development opportunities. Through the

Manual Jihong ensures fairness in recruitment employment evaluation promotion and retirement explicitly prohibiting discrimina- Hongyu Program the Company hired 8 trainees

tion based on gender age religion nationality marital status race or disability. Employees performing the same work with equal during the spring hiring season and 19 trainees

contributions and results receive equal pay and benefits ensuring fair treatment across the organization. during the autumn hiring season supporting

newcomers in their rapid professional growth

while injecting fresh talent innovation and

The Company maintains a zero-tolerance policy against child labor and forced labor implementing strict preventive measures. In competitiveness into the Company.compliance with the Law of the People’s Republic of China on the Protection of Minors and the Provisions on the Prohibition of

Using Child Labor and stipulated by the Cooperate Social Responsibility (CSR) Management Manual and its subsidiaries are required

to verify employee identity during recruitment ensuring no minors are employed. All forms of forced labor are strictly prohibited. If a

suspected case arises an immediate investigation is conducted with disciplinary action taken against responsible personnel. In 2024

no incidents of child labor or forced labor were reported within the Company. JIHONG GROUP’S EMPLOYMENT IN 2024

We place great emphasis on building a diverse talent pipeline developing position-specific recruitment plans to attract professionals

with relevant expertise skills and experience. Talent acquisition is carried out through campus recruitment online media platforms Total Number of Employees 4324 People Employee Turnover Rate 19.39 %

and headhunting services ensuring a multi-tiered workforce that supports the Company’s growth. Additionally we encourage the

re-employment of retired technical personnel actively recruit minority groups and increase the representation of female executives.These efforts contribute to a balanced diverse and high-performing corporate environment. In 2024 the Company had 4324 Female 2163 Senior Manager 229 Outside Chinese Mainland 3

employees including 40 employees with disabilities.Middle Manager 410

JIHONG GROUP’S RECRUITMENT CHANNELS Number of Number of Number of

Employees Employees by Employees

by Gender Employment by Region

Type

Campus Recruitment Social Recruitment Headhunting Recruitment Male 2161 General Staff 3685 ChineseMainland 4321

30 and below 1831 Below Junior College 1913 Employee Turnover Rate by Gender

Establish strategic partnerships Recruit through leading Works with headhunting 51 and above 304 Graduate Above89

Male Female 19.74%

with major universities and domestic job portals 19.03%firms and talent agencies 41-50 673 Junior College 900

colleges creating a long-term professional talent websites to recruit mid-to-se- Employee Turnover Rate by Age

cooperation framework to attract and regional recruitment nior-level professionals Number of Number of

dynamic and innovative platforms bringing in external Employees Employeesensuring high-quality hires 31-40 16.98%by Ag by Education 30 and below 23.99%

graduates ensuring a steady talent with diverse industry and recruitment efficiency. 41-50 12.03% 51 and above 16.48%

talent pipeline. experience and perspectives. 31-40 1516 Undergraduate 1422

-31-3.4.2 EMPLOYEE RIGHTS PROTECTION Case: Occupational Health Check-upJihong Group is committed to protecting employee rights adhering to the principles of“ compliance fairness motivation competitive-ness and resilience”. The Company has established the Compensation and Management System Performance Management System The Company regularly organizes

occupational health check-ups

and Packaging Business Performance Management System continuously improving its compensation and benefits framework. By providing employees with

implementing company-wide incentive policies Jihong enhances organizational vitality and supports long-term corporate growth. The comprehensive medical examinations

Company has also developed a performance incentive and evaluation system ensuring transparent communication and feedback. to detect potential health issues early.Compensation structures are tailored based on business units job roles and responsibilities offering: performance-based salary Additionally professional doctors are

available for health consultations

annual salary system commission-based salary and piece-rate salary ensuring that employees’ rights are fully protected. offering personalized health

recommendations demonstrating the

Beyond salaries Jihong provides comprehensive benefits to support employees’ well-being. The Company provides annual health Company’s commitment to employee

check-ups ensuring employees maintain good health. Employees also receive holiday gifts various subsidies and recognition rewards well-being.for long-term service. To promote work-life balance Jihong organizes cultural activities to enrich employees’ leisure time and reduce

work-related stress. Through this well-rounded benefits system employees receive both financial rewards and emotional support. 2024 Annual Occupational

Health Checkup On-Site

Case: Annual Outstanding Team Building Activity The Company values open communication and respects employees' right to information and oversight. To regulate employee rights

appeal mechanisms the Company has established the Cooperate Social Responsibility (CSR) Management Manual and Labor Dispute

In 2024 Jihong Group’s Luanzhou and Langfang Management System. A dedicated communication platform has been set up allowing employees to share feedback through forums

factories organized an annual outstanding and suggestion boxes. The Company actively adopts reasonable suggestions promptly addresses concerns and ensures timely

team-building activity in Shanhaiguan Qinhuangdao.The team visited Shanhaiguan Pass Laolongtou and resolutions reinforcing its commitment to protecting employees’ rights and interests.other historical sites experiencing the rich heritage of

Chinese culture. Through team collaboration games

and historical cultural learning employees not only

relieved work-related stress but also enhanced Case: Heart-to-Heart Meetings - Listening to Employees’ Voices

communication and trust injecting new energy and

motivation into their future work. The Company regularly organizes heart-to-heart meetings creating a relaxed and welcoming atmosphere with

Annual Outstanding Team Building Activity On-Site refreshments to encourage employees to openly discuss topics such as corporate culture management policies and the

work environment. Through these sessions employees can share their thoughts and suggestions foster mutual

understanding and trust and strengthen team cohesion collectively driving the Company’s growth and development.Case: Holiday Benefits

The Company consistently upholds a people-oriented

approach. During major festivals such as Spring Festival

Mid-Autumn Festival and International Women’s Day

the Company prepares holiday benefits and distributes

festive gifts to all employees. These gestures recognize

their hard work and dedication fostering a sense of

belonging and care within the Company.International Women’s Day Celebration

at the Ningxia Factory Speech Session at the Heart-to-Heart Talk Meeting Summary Session at the Heart-to-Heart Talk Meeting

-32-Meanwhile the Company applies the TACT Development Model[ TACT Development Model2 a succession talent cultivation framework

3.4.3 EMPLOYEE TRAINING AND DEVELOPMENT centered on four key elements: Training Self-Arise Coaching and Task Assignment.] which defines clear career-level progression

paths within promotion assessments. Employees are evaluated on several factors including technical proficiency professional

competence and management skills. Based on their individual strengths employees are given personalized development plans and

objectives. This approach maximizes the potential of core talent at all levels boosts employee engagement and supports faster career

Jihong Group is dedicated to the career development of its employees. By providing a structured talent development system and clear growth.promotion pathways the Company helps employees achieve continuous progress and professional breakthroughs. Through diverse

training programs and access to varied resources employees are encouraged to develop their skills realize their potential and grow

alongside the organization. Case: Professional Skills Examination

TALENT DEVELOPMENT AND PROMOTION In 2024 to support employee

career advancement the

Company conducted aThe Company is committed to establishing a scientific talent pipeline development mechanism and has formulated the Employee comprehensive“ Instrumentand Meter MaintenanceCareer Development Management System. It conducts regular talent assessments and builds a personnel mechanism where“ the Technician Professional Skillscapable rise the mediocre step aside and the incomplete leave.” Through initiatives such as management trainee programs Certification Examination.”

leadership development plans and strategic talent cultivation projects employees are guided toward career paths that align with their This assessment not only

strengths. This approach not only supports individual professional growth but also ensures the Company’s strategic implementation. provided employees with

promotion opportunities but

also enhanced their

professional skills through

JIHONG GROUP’S TALENT DEVELOPMENT PLANS systematic training and practical evaluations. This

initiative contributed to

individual growth and the

cultivation of high-quality

technical talent driving

Jihong Group Jihong Group Strategic

Giikin Management technological innovation and

Management Talent Talent Cultivation Project progress for the Company - a

Trainee Program true win-win for both

Development Plan “Hongyu Program” employees and the Company.The Giikin Management Trainee Program

is designed to cultivate versatile talents The Company identifies high-potential The program covers four stages:

with expertise in both business and employees through talent selection development

management. Over 12 months trainees go assessments and evaluations appointment and retention. In the

through rotational assignments preparing them for key leadership selection stage the focus is on

structured training and performance roles. Development efforts include identifying high-potential highly

evaluations to build their skills and hands-on project assignments committed and highly qualified

adaptability. Trainees rotate through roles mentorship programs and leadership talents. The development stage is

such as Business Assistant Optimization courses equipping employees with based on a work-study approach

Specialist and Product Selection the skills needed for management combining on-the-job training

Specialist gaining hands-on experience positions. Qualified individuals are classroom learning and

through company onboarding business promoted through direct mentorship to set clear growth

rotations and competitive placement appointments or internal selection objectives and provides dual

exercises. The program is supported by processes ensuring a strong pipeline career paths in both technical and

mentorship regular evaluations and of capable leaders. This program helps managerial roles. The retention

quarterly reviews ensuring continuous build a talent pool for roles such as stage offers performance bonuses

development. At the end of the program Vice Presidents department heads in salary adjustments and promotion

trainees are placed in roles that match production PMC quality and incentives to support the long-term

their skills and interests helping them equipment management as well as development and stability of core

grow while contributing to the Company’s frontline team leaders supporting talent.success. both employee career growth. 2TACT Development Model a succession talent cultivation framework centered on four key elements: Training Self-Arise Coaching and Task Assignment.Instrument and Meter Maintenance

Technician Professional Skills

Certification ExaminationEMPLOYEE TRAINING Case: Personal Income Tax Themed Training

We prioritize employee development by establishing policies such as the Training Management System which standardizes training In July 2024 Jihong Group conducted a

training session focused on personal

procedures and requirements. Tailored to different job functions and levels we offer a range of differentiated training programs that income tax. The session explained the

address the specific growth needs of each employee group. This ensures employees’ skills evolve alongside the Company’s needs. In relevant laws and regulations tax

2024 employees collectively completed 43691 hours of training averaging 10.1 hours per employee. declaration procedures and special

additional deduction policies. By

incorporating real-life case studies the

training helped employees better

understand and apply personal income

JIHONG GROUP’S EMPLOYEE 43691 Total training hours for all employees tax incentives enhancing the accuracy of the companyTRAINING IN 2024： and compliance of their tax filings.hours

Personal Income Tax Training

10.1 Average training hours per employee Session at Xiaogan Factoryhours

JIHONG GROUP’S TRAINING PROGRAMS Case:“ Learn from the Benchmark Become a SkilledPractitioner” Job Skills CompetitionIn November 2024 Jihong Group organized an engaging job skills competition under the theme“ Learn from the BestManagement Trainee Camp Become a Skilled Practitioner”. This event provided frontline workers with a platform to refine their techniques exchange

Training is conducted for communication skills professional etiquette office skills and job skills for new employees to

assist their role transition from campus to workplace. technical know-how and showcase their skills. Competition events included roles such as box nailing die cutting handle

threading and paper mounting. The event sparked enthusiasm among employees to learn new technologies master

essential skills and demonstrate their abilities thereby fueling the development of a knowledgeable skilled and innovative

Supplier Reverse Empowerment workforce within the Company.Suppliers provide empowerment training to employees of related departments enhancing their equipment operation skills.Key Positions(Competency Development)

Professional skill training is conducted for employees in key positions to enhance their job competency.Management Leaders

-Senior Managers

Enhance the ability of senior managers to systematically integrate vision strategy organization and culture while

fostering core competencies for the enterprise.-Middle Managers

Improve the various management skills needed for middle managers to achieve the goals of the Company.-Junior Managers

Improve the basic management skills and abilities such as planning control and improvement needed for junior

managers to complete work tasks. Skills Competition Event Venue

-34-3.5 SOCIAL WELFARE

Jihong Group actively fulfills its social responsibilities by sharing the fruits of development with society. The Company leverages its resources uses its resources to support vulnerable groups through various public welfare projects and encourages employees to get involved in community

building and charity through volunteer work helping create a harmonious society. We organize activities such as community clean-ups visiting and supporting senior members of the Communist Party of China establishing care stations for outdoor workers offering water and rest areas and

donating used clothing to mountainous regions in need. These actions aim to give back to society spreading warmth and positivity.In 2024 employees participated in volunteer activities for a total of 146 person-times contributing 421 hours of service with public welfare projects receiving an investment of RMB 30500.Case: Cleaning Up for Civility - Demonstrating Voluntee Commitment Case: Establishing a Care Station for the“ Warm Winter SolsticeLove Transfer” Charity Event

On April 2024 the Zhengzhou Giikin Party branch In December 2024 Zhengzhou Giikin in

of the Communist Party of China (CPC) organized a collaboration with the local community set up avolunteer service event titled“ Youth in My Heart care station to extend winter warmth to outdoorEnvironmental Protection in My Actions.” Branch workers - such as sanitation staff delivery

members gathered at a sculpture park to collect personnel traffic assistants and security and

and sort litter scattered throughout the area. This cleaning personnel - as well as special groups like

initiative enabled participants to contribute to elderly people living alone. During the event

urban environmental protection while deepening volunteers distributed handmade and freshly

their awareness of environmental issues. It further cooked dumplings along with care packages that

inspired a sense of responsibility and mission in included warm clothing and essential household

practicing green development principles. The items. This initiative ensured that those who work

event not only underscored the Company’s diligently in the cold and vulnerable seniors could

commitment to social responsibility but also feel the warmth and support of society. Giikin’s

strengthened team cohesion and fostered a efforts exemplify the spirit of‘ mutual support andpositive cultural atmosphere within the social inclusion” and the Company remains

organization achieving a win-win for both committed to continuing this mission by providing

corporate and social values. warmth and assistance to more people in need.“ Youth in My Heart Environmental Protection in My Actions” Volunteer Service Activity “ Warm Winter Solstice Love Transfer” Charity Event

Case: Senior CPC Members Care Initiative Case: Joint“ Share the Love Spread the Warmth” Volunteer Campaign

In June 2024 on the eve of the Founding In December 2024 Giikin joined forces with theAnniversary of the CPC (July 1st) Giikin in China Charity Federation to launch the“ ShareZhengzhou organized a care initiative for senior the Love Spread the Warmth” volunteer

members of the CPC. The event extended heartfelt campaign aimed at bringing care and warmth to

festival greetings and sincere care to CPC people in impoverished areas. During the event

members aged 65 and above recognizing their Giikin organized both employees and

significant contributions to the Party’s cause and community members to donate used clothing.societal development. This initiative deepened the The China Charity Federation then handled the

bond between the Company and the community second-stage cleaning sorting and disinfection

allowing senior party members to experience of the garments ensuring that every item was

social warmth and respect. It also promoted the safely and neatly delivered to those in need. This

cherished tradition of honoring the elderly and initiative provided practical support to alleviate

venerating wisdom inspiring all employees to the living pressures of disadvantaged groups

follow these senior role models inherit the red during the cold winter months.spirit and contribute even more to both the

Company’s development and social progress.Senior CPC Members Care Event “ Share the Love Spread the Warmth” Volunteer Event and Thank You Letter

-35-4 GOVERNANCE: ENHANCING GOVERNANCE

Shareholders' Meeting

Jihong Group adheres to the principles of compliance and transparency in its operations continuously refining its corporate The Shareholders’ Meeting as the Company’s highest governing body is responsible for deciding

governance to improve risk management uphold ethical standards and maintain a scientific robust and effective operation business strategies and investment plans. It has the authority to appoint and dismiss directors and

governance framework. This provides a solid foundation for the Company’s sustainable development. supervisors and make key company decisions.The Company follows strict procedures for convening conducting and voting in Shareholders’

Meetings. A structured communication strategy is in place to encourage participation ensuring

that all shareholders including minority shareholders have equal standing and legal rights.

4.1 CORPORATE GOVERNANCE In 2024 the Company held 8 Shareholders’ Meetings.

Jihong Group regards a robust corporate governance system as the cornerstone of its high-quality sustainable development. With a

focus on governance excellence the Company continually strengthens its framework fosters diversity within the Board of Directors Board of Directors

improves decision-making processes safeguards investor rights and ensures stable sustainable operations.The Board of Directors as the Company’s permanent body is responsible for setting business

plans and investment strategies convening Shareholders’ Meetings and executing their

resolutions. The Board is directly accountable to the Shareholders’ Meeting.

4.1.1 BOARD OF DIRECTORS STRUCTURE In 2024 the Company held 12 Board of Directors meetings with a 100% attendance rate among

board members.Jihong Group strictly adheres to laws and regulations such as the Company Law of the People’s Republic of China the Securities Board of Supervisors

Law of the People’s Republic of China the Stock Listing Rules of the Shenzhen Stock Exchange and other relevant regulations. The

Company has established internal policies such as the Articles of Association Rules of Procedure for Shareholders’ Meetings and the The Board of Supervisors is responsible for supervising the conduct of directors and senior

Rules of Procedure for the Board of Directors. The company's management and decision-making framework is composed of the management as well as overseeing financial activities to protect the interests of the Company and

Shareholders’ Meeting Board of Directors Supervisory Board and senior management. Director elections and appointments follow a its shareholders.fair and transparent process ensuring a governance system that is efficient compliant and stable while safeguarding the interests of

both the Company and its shareholders. The Board of Supervisors is composed of 3 members and in 2024 the Company convened 8 Board

of Supervisors meetings.The Board of Directors has established specialized committees including the Strategy Committee Audit Committee Nomination

Committee and Remuneration and Assessment Committee. These committees report directly to the Board offering guidance on key

management decisions and overseeing the implementation of resolutions to maintain effective governance. As of the reporting period Senior Management

the Board consists of 11 members including 6 non-independent directors and 5 independent directors with independent directors

making up 45% of the Board.Senior Management as the executive branch of the Board of Directors is fully responsible for the

Company’s daily operations and management under the Board’s leadership.THE COMPANY’S THREE-COMMITTEE GOVERNANCE STRUCTURE4.1.2 DIVERSITY OF BOARD OF DIRECTORS 4.1.3 INVESTORS COMMUNICATION MECHANISM

Jihong Group values diversity in its Board of Directors and considers factors such as gender age professional background and Jihong Group is guided by investor needs and adheres to the principles of openness and transparency in information disclosure

education when selecting or replacing members. Board members are expected to have a well-rounded mix of expertise including a maintaining a clear and efficient communication mechanism with investors. The Company shares its management philosophy

strong understanding of their roles industry experience and professional knowledge in finance law and corporate management. corporate culture and business performance through shareholders’ meetings earnings briefings and other platforms. To protect

This combination ensures informed and effective decision-making. To promote stability the Company has implemented a structured investor and shareholder interests the Company continuously strengthens its shareholder return mechanism fostering a balanced

remuneration system that incentivizes directors and senior executives to actively carry out their responsibilities. As of the end of the relationship between the Company and its shareholders while supporting sustainable development.reporting period Jihong Group’s Board includes 2 female directors.COMPOSITION OF A DIVERSE BOARD OF DIRECTORS3

Committee Appointment Status

Positions Name Gender Age The Company actively engages with investors through multiple channels including public

Strategy Audit Nomination Remuannedration announcements interactive Q&A sessions performance briefings investor hotlines calls email

Committee Committee Committee ACsosmesmsmitteenet responses the official website and WeChat public accounts. These efforts foster long-term

mutually trusting relationships. During the Reporting Period the Company held 2 earnings

WANG Yapeng Male 46 C

briefings responded to 68 interactive Q&A sessions and issued 160 announcements.ZHUANG Hao Female 56 M

ZHANG Heping Male 56 M

ZHUANG Shu Male 54 M

LU Tashan Male 27

LIAO Shengxing Male 48

The Company continually enhances its shareholder return mechanism carefully considering

ZHANG Guoqing Male 49 C M input from shareholders independent directors and supervisors with particular attention to

minority shareholders. In line with its profit distribution policy cash dividends remain a

priority ensuring stable returns while maintaining a fair balance between shareholder

YANG Chenhui Male 58 M C interests and the Company’s long-term growth.HAN Jianshu Male 63 M

XUE Yongheng Male 64 M

WU Yongqian Female 54 M C

3C - Chairman of the relevant Board of Directors M - Member of the relevant Board of Directors

Investor Communication Shareholder Returns

Non-Independent Directors Independent Directors4.2 RISK MANAGEMENT

Jihong Group continuously strengthens its risk management framework by clearly defining responsibilities at every level actively

identifying and addressing risks and refining control measures. At the same time the Company places great emphasis on fostering a 4.2.3 RISK AWARENESS AND CULTURE

strong risk awareness among all employees providing robust support for the long-term stable development of its business.The Company places great emphasis on enhancing risk management awareness and building a strong risk-aware culture by strength-

ening employees’ understanding of risk management. To meet employee needs the Company regularly organizes training sessions

and awareness programs on contract management stamp management and system operations. These initiatives help employees stay

4.2.1 RISK GOVERNANCE informed about internal risk policies minimizing the likelihood of risk violations in daily operations.

Jihong Group adheres to the principle of“ knowable controllable and bearable” and has established a Comprehensive Risk Manage- Case: Procurement contract risk management training

ment System that outlines clear risk control requirements across all operations with a focus on managing key risks. The Company’s

risk management framework includes the Board of Directors Audit Committee and Audit and Financial Management Center with In 2024 the Legal Department conducted a training session focused on procurement contract risk management. The training

covered essential legal knowledge related to procurement contracts as well as tips on common pitfalls encountered during

well-defined roles across functional units to ensure effective implementation and oversight of risk management. practical operations. This helped management personnel quickly grasp the relevant legal concepts avoid risk factors in daily

operations and effectively communicate compliance requirements to their teams. Nearly 30 participants attended including

JIHONG GROUP’S RISK MANAGEMENT FRAMEWORK AND RESPONSIBILITIES general managers of subsidiaries and department heads at both headquarters and subsidiaries significantly enhancing the risk

control capabilities of the Company’s management team.Board of Directors Audit Committee Audit and Financial

Management Center

4.3 BUSINESS ETHICS

Functions as a specialized Reports regularly to the Audit

Oversees overall risk management committee under the Board Committee monitoring internal

and business operations. providing guidance and supervision control systems to ensure that they Jihong Group consistently upholds its core values of“ responsibility innovation and achievement” adhering to the principle that

for risk management activities. are properly established and “credibility and integrity lay the foundation for growth.” The Company continuously strengthens its ethics governance promotes an

effectively implemented.anti-corruption culture and maintains a transparent complaint and reporting system. With a zero-tolerance stance on corruption and

unfair competition Jihong Group fosters a culture of integrity ensuring long-term sustainable development.

4.2.2 RISK IDENTIFICATION AND RESPONSE

4.3.1 BUSINESS ETHICS GOVERNANCE

The Company continually optimizes its risk management processes by systematically identifying assessing and addressing risks and

maintaining a comprehensive risk register. In 2024 key risks were identified across production and operations covering critical Jihong Group places great emphasis on integrity and compliance management strictly adhering to the Company Law of the

business cycles such as procurement production and sales management along with essential areas like logistics and asset People’s Republic of China the Anti-Monopoly Law of the People’s Republic of China the Criminal Law of the People’s Republic

management. Targeted control measures have been implemented to prioritize and manage risks effectively strengthening overall risk of China the Anti-Unfair Competition Law of the People’s Republic of China and the Anti-Money Laundering Law of the People’s

management. To ensure thorough oversight risk management audits are conducted regularly as part of the internal control audit Republic of China. The Company has fully implemented internal management policies related to business ethics and anti-corruption

process. This includes annual self-assessments and external third-party audits. During the Reporting Period no significant risks or including the Conflict of Interest Management System the Anti-Business Bribery Anti-Fraud and Reporting Management System

major concerns were identified. and the Gift Management Measures. Jihong Group firmly opposes all forms of commercial bribery corruption fraud and unfair

competition maintaining a zero-tolerance policy toward any illegal or non-compliant behavior.Risk Each department collects initial internal and external data related to potential risks and risk management.Identification Methods used for risk information collection and identification include document review question- Board of Audit Management Audit Company and

naires interviews and historical event analysis. Directors Committee Team Department Subsidiaries

Establish a risk assessment team to define the Company’s risk management philosophy and risk As the highest governing As the leading body for body for business ethics the Company’s integrity Responsible for establishing The Audit Department The Company and its tolerance. governance it is responsible initiatives it is improving and effectively serves as the Company’s subsidiaries are Risk Identify risks their sources and categories with detailed documentation of their severity. Risk for establishing and responsible for guiding implementing internal permanent body for responsible for the

sources include environmental factors processes strategic decision-making information internal improving the internal and supervising the controls related to anti-bribery and implementation of Assessment control system for Company’s anti-bribery anti-bribery and anti-fraud anti-fraud efforts internal controls related and external Company elements.Establish a risk assessment index system and standards. anti-bribery and anti-fraud and anti-fraud efforts.with the aim of mitigating responsible for to anti-bribery and

the risk of bribery and conducting supervision anti-fraud and for

Analyze the risks and determine the potential losses they may incur. and overseeing management’s compliance fraudulent activities. In the and investigations related cooperating in the

with integrity regulations. event of a bribery incident it to these matters. It investigation and is responsible for formulating reports investigation evidence collection of

and implementing results directly to the bribery and fraud

Based on the risk analysis results and the underlying causes select appropriate risk response appropriate and effective Audit Committee. incidents.Risk Response strategies such as risk avoidance acceptance reduction or transfer. remedial measures subject

Establish a dynamic mechanism for monitoring reviewing and preventing risks ensuring ongoing JIHONG GROUP’S BUSINESS to oversight by the Board of

control while communicating and sharing risk information with relevant departments. Directors and its Audit ETHICS MANAGEMENT SYSTEM Committee.RISK MANAGEMENT

PROCESS AND MEASURESTo enhance the risk controls against corruption unfair competition and other violations Jihong Group has reinforced its integrity

management measures. When appointing or promoting candidates for key positions the Company conducts thorough integrity Case: Jihong Group integrity training

evaluations and enforces a strict anti-bribery commitment system. Candidates are required to sign the Honest Operation and

Compliance Management Commitment Letter with compliance performance integrated into their evaluations. Based on business In 2024 the Audit Department distributed integrity

ethics risk assessments the Company also conducts regular audits combining daily monitoring with targeted reviews. Any identified and compliance training materials on gift

issues are promptly addressed to mitigate risks effectively. During the Reporting Period no major corruption or bribery incidents were acceptance and offering compliance to department

heads and subsidiary managers. Each management

recorded. team was required to complete self-learning within

a designated timeframe and conduct internal

training sessions within their respective units. The

Suppliers are required to sign the Sunshine Integrity Action Commitment Letter which outlines business training covered fundamentals of integrity

ethics requirements and provides reporting channels for anti-corruption and unethical behavior compliance and guidelines for gift exchanges

complaints. reinforcing ethical business conduct among Suppliers employees strengthening business ethics

awareness among the management team and

ensuring that improper benefits are handled

Routine and business-specific audits are conducted to ensure compliance. These audits typically include supplier appropriately in the workplace. This initiative

integrity management focusing on mutual commitments to ethical standards and identifying further safeguarded the Company’s commitment to

any violations during the cooperation period. Subsidiaries honest and compliant operations.Jihong Group’s Integrity Awareness Training Session

Business ethics guidelines from the Code of Conduct for Management Personnel are reinforced during

onboarding and regularly reviewed in managerial meetings. Internal Employees

4.3.3 REPORTING MANAGEMENT

Jihong Group adheres to the requirements

4.3.2 BUSINESS ETHICS TRAINING of national disciplinary inspection and supervisory

authorities continuously improving its Anti-Business Jihong Group’s Reporting Channels

Bribery Anti-Fraud and Reporting Management System

to enhance reporting procedures and channels. The

Jihong Group actively promotes anti-corruption and integrity training to strengthen Company ensures that all complaints and reports are

addressed promptly and effectively. Multiple reporting Reporting Email:

corporate ethics and reinforce a culture of transparency. Regular training sessions are held channels are available allowing employees and external shenji@jihong.cn

for senior management and Board members covering the Code of Conduct for Manage- business partners to report fraud or suspected

ment Personnel and Gift Management Measures to prevent corruption and uphold ethical misconduct through telephone email mail or

governance. For all employees the Company expands integrity awareness through face-to-face meetings. Upon receiving a report the Audit

Operations Center conducts a thorough investigation

educational posters and ongoing corporate ethics initiatives. In 2024 Jihong Group strictly following the reporting procedure to ensure

launched a top-down integrity training program providing standardized training fairness and objectivity.materials. Department heads were required to complete self-learning within a set

timeframe and conduct internal training sessions. To safeguard whistleblowers the Company’s internal Reporting Hotline:

policies explicitly prohibit discrimination retaliation or 18150353249

unfair treatment including dismissal persecution or

Compliance Requirements for Mid-Autumn Festival Gift Acceptance and Offering Compliance Poster disciplinary action. Without consent the Company does

not disclose the whistleblower’s identity or details of the

report ensuring protection throughout the investigation.By the end of the reporting period Jihong Group held two anti-corruption training sessions for employees covering business ethics At the same time the Company strictly forbids false or

malicious reports. If such cases arise appropriate actions

standards reporting mechanisms and reward and punishment regulations with 356 participants in total. For the management team are taken against the whistleblower to maintain the Reporting Address：

anti-corruption training materials were distributed and all managers were required to complete self-learning. The Board of Directors credibility of reporting channels. In 2024 the Company Audit Department Jihong Group No.9 Putou

did not experience any lawsuits or administrative

participated in 4 anti-corruption training sessions attended by all 11 board members. The total training duration was 4 hours Rd. Dongfu Industry Park Ⅱ Haicang Districtpenalties related to unfair competition corruption

100% bribery or money laundering. Xiamen City Fujian Provinceachieving a participation rate.

JIHONG GROUP’S BUSINESS

ETHICS AUDIT MEASURES5 APPENDICES

Description of whether there is any issue in sourcing water that is

A2.4 fit for purpose water efficiency target(s) set and steps taken to 2.1.2 Resource Management

5.1 HKEX - ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORTING GUIDE achieve them.

INDEX Total packaging material used for finished products (in tonnes) A2.5 and if applicable with reference to per unit produced. 2.1.4 Green Products

Environmental Aspect A3: The Environment and Natural Resources

General Disclosure & KPI Indicator Description Chapter References Policies on minimising the issuer’s significant impacts on the 2.1.1 Environmental

General Disclosure

environment and natural resources. Management System

Aspect A1: Emissions

2.1.1 Environmental

Description of the significant impacts of activities on the

Information on:(a) the policies; and(b) compliance with relevant 2.1.1 Environmental Management System

KPI A3.1 environment and natural resources and the actions taken to

laws and regulations that have a significant impact on the issuer 2.1.2 Resource Management

General Disclosure Management System manage them.relating to air emissions discharges into water and land and 2.1.2 Resource Management 2.1.3 Emission Management

generation of hazardous and non-hazardous waste. 2.1.3 Emission Management 2.1.4 Green Products

A1.1 The types of emissions and respective emissions data. 2.1.3 Emission Management CLIMATE-RELATED DISCLOSURES

Direct (Scope 1) and energy indirect (Scope 2) greenhouse gas

2.1.2 Resource Management

A1.2 emissions (in tonnes) and where appropriate intensity (e.g. per

2.1.3 Emission Management Governance Governance 2.3.1 Governance

unit of production volume per facility).Climate-related risks and opportunities 2.3.3 Risk Management

A1.3 Total hazardous waste produced (in tonnes) and where appropriate 2.1.3 Emission Management Business model and value chain 2.3.3 Risk Management

intensity (e.g. per unit of production volume per facility).KPI Strategy and decision-making 2.3.2 Strategy

Total non-hazardous waste produced (in tonnes) and where Strategy

A1.4 Financial position financial performance and cash flows Not applicable

appropriate intensity (e.g. per unit of production volume per facility). 2.1.3 Emission Management

Climate resilience Not applicable

A1.5 Description of emission target(s) set and steps taken to achieve them. 2.1.3 Emission Management Financial effects of climate-related risks and opportunities Not applicable

Description of how hazardous and non-hazardous wastes are Risk Management Risk Management 2.3.3 Risk Management

A1.6 handled and a description of reduction target(s) set and steps taken 2.1.3 Emission Management Greenhouse gas emissions 2.3.4 Indicators and Targets

to achieve them.Climate-related transition risks 2.3.3 Risk Management

Aspect A2: Use of Resources

Climate-related physical risks 2.3.3 Risk Management

Policies on the efficient use of resources including energy water

General Disclosure 2.1.2 Resource Management

Climate-related opportunities Not applicable

and other raw materials.Metrics and Capital deployment Not applicable

Direct and/or indirect energy consumption by type (e.g. electricity

A2.1 Targetsgas or oil) in total (kWh in ’000s) and intensity (e.g. per unit of 2.1.2 Resource Management Internal carbon prices Not applicable

production volume per facility). Not applicable Not applicable

KPI Water consumption in total and intensity (e.g. per unit of production A2.2 2.1.2 Resource Management Industry-based metrics Not applicable

volume per facility).Description of energy use efficiency target(s) set and steps taken to Climate-related targets 2.3.4 Indicators and Targets

A2.3 achieve them. 2.1.2 Resource Management Applicability of cross-industry metrics and industry-based metrics 2.3.4 Indicators and Targets

Climate-related DisclosuresSocial

3.2.1 Supplier Admission

B5.1 Number of suppliers by geographical region. and Evaluation

General Disclosure & KPI Indicator Description Chapter References Description of practices relating to engaging suppliers number of 3.2.1 Supplier Admission

B5.2 suppliers where the practices are being implemented and how and Evaluation3.2.2 Supply Chain ESG

Aspect B1: Employment they are implemented and monitored. Management

KPI 3.2.1 Supplier Admission

Information on:(a) the policies; and(b) compliance with relevant 3.4.1 DiversityEquality Description of practices used to identify environmental and social B5.3 risks along the supply chain and how they are implemented and and Evaluation

laws and regulations that have a significant impact on the issuer and Inclusion 3.2.2 Supply Chain ESGmonitored. Management

General Disclosure relating to compensation and dismissal recruitment and 3.4.2 Employee Rights Protection

promotion working hours rest periods equal opportunity 3.4.3 Employee Training Description of practices used to promote environmentally 3.2.1 Supplier Admissionand Evaluation

diversity anti-discrimination and other benefits and welfare. B5.4and Development preferable products and services when selecting suppliers and 3.2.2 Supply Chain ESGhow they are implemented and monitored. Management

B1.1 Total workforce by gender employment type (for example full- or 3.4.1 DiversityEqualitypart-time) age group and geographical region. and Inclusion

KPI Aspect B6: Product Responsibility

Employee turnover rate by gender age group and geographical

B1.2 3.4.1 DiversityEquality

region. and Inclusion Information on:(a) the policies; and(b) compliance with relevant

laws and regulations that have a significant impact on the issuer 3.1.1 Quality Management

Aspect B2: Health and Safety General Disclosure relating to health and safety advertising labelling and privacy 3.1.2 Customer Service

Information on:(a) the policies; and(b) compliance with relevant 3.3.1 Work Safety matters relating to products and services provided and methods

3.1.3 Information Security

3.1.4 Innovation and R&D

General Disclosure laws and regulations that have a significant impact on the issuer of redress.relating to providing a safe working environment and protecting 3.3.2 Occupational

employees from occupational hazards. Health and Safety B6.1 Percentage of total products sold or shipped subject to recalls for safety and health reasons. 3.1.1 Quality Management

B2.1 Number and rate of work-related fatalities occurred in each of the past three years including the reporting year. 3.3.1 Work Safety B6.2 Number of products and service related complaints received and how they are dealt with. 3.1.2 Customer Service

B2.2 Lost days due to work injury. 3.3.1 Work Safety

KPI KPI B6.3 Description of practices relating to observing and protecting intellectual property rights. 3.1.4 Innovation and R&D

Description of occupational health and safety measures adopted 3.3.1 Work Safety

B2.3 3.3.2 Occupational B6.4 Description of quality assurance process and recall procedures. 3.1.1 Quality Management

and how they are implemented and monitored. Health and Safety

B6.5 Description of consumer data protection and privacy policies

Aspect B3: Development and Training and how they are implemented and monitored.

3.1.3 Information Security

Policies on improving employees’ knowledge and skills for 3.4.3 Employee Training Aspect B7: Anti-corruption

General Disclosure

discharging duties at work. Description of training activities. and Development Information on:(a) the policies; and(b) compliance with relevant

B3.1 The percentage of employees trained by gender and employee 3.4.3 Employee Training

General Disclosure laws and regulations that have a significant impact on the issuer 4.3.1Business Ethics Governance

category (e.g. senior management middle management). and Development relating to bribery extortion fraud and money laundering.KPI

B3.2 The average training hours completed per employee by gender 3.4.3 Employee Trainingand employee category. and Development Number of concluded legal cases regarding corrupt practices B7.1 brought against the issuer or its employees during the reporting 4.3.3 Reporting Management

period and the outcomes of the cases.Aspect B4: Labour Standards KPI

B7.2 Description of preventive measures and whistle-blowing procedures and how they are implemented and monitored. 4.3.3 Reporting Management

Information on:(a) the policies; and(b) compliance with relevant

General Disclosure 3.4.1 DiversityEqualitylaws and regulations that have a significant impact on the issuer B7.3 Description of anti-corruption training provided to directors and and Inclusion staff. 4.3.2 Business Ethics Trainingrelating to preventing child and forced labour.B4.1 Description of measures to review employment practices to avoid 3.4.1 DiversityEqualitychild and forced labour. and Inclusion Aspect B8: Community Investment

KPI

B4.2 Description of steps taken to eliminate such practices when 3.4.1 DiversityEqualitydiscovered. and Inclusion Policies on community engagement to understand the needs of

General Disclosure the communities where the issuer operates and to ensure its 3.5 Social Welfare

Aspect B5: Supply Chain Management activities take into consideration the communities’ interests.

3.2.1 Supplier Admission Focus areas of contribution (e.g. education environmental B8.1 3.5 Social Welfare

Policies on managing environmental and social risks of the and Evaluation KPI concerns labour needs health culture sport). General Disclosure 3.2.2 Supply Chain ESG

supply chain. Management

3.2.3 Supplier Communication B8.2 Resources contributed (e.g. money or time) to the focus area. 3.5 Social Welfare

-41-5.2 SHENZHEN STOCK EXCHANGE ESG INDEX

Dimen-

sions Index Topics Corresponding Clauses Corresponding Chapter

Dimen-

sions Index Topics Corresponding Clauses Corresponding Chapter

18 Due Diligence Article 52 1.6.2 Stakeholder 2.3.1 Governance Communication

Addressing Climate Change Article 21-28 2.3.2 Strategy 1.6.2 Stakeholder

1 2.3.3 Risk Management 19 Stakeholder Communication Article 53 Communication

2.3.4 Indicators and Targets

4.3.1 Business Ethics

Anti-Bribery and Anti-Corrup- Governance

2 Pollute Emissions Article 30 2.1.3 Emission Management

20 tion Article 55 4.3.2 Business Ethics Training4.3.3 Reporting Management

3 Waste Management Article 31 2.1.3 Emission Management 4.3.1 Business Ethics

21 Anti-Unfair Competition Article 56 Governance

4 Ecosystem and Biodiversity 2.4 Biodiversity 4.3.3 Reporting Management

Protection Article 32

5 Environmental Compliance 2.1.1 Environmental Management Management Article 33 System

6 Energy Utilization Article 35 2.1.2 Resource Management

7 Water Resource Management Article 36 2.1.2 Resource Management

8 Circular Economy Article 37 2.1.2 Resource Management

9 Rural Revitalization Article 39 3.5 Social Welfare

10 Social Contribution Article 40 3.5 Social Welfare

11 Innovation-Driven Article 42 3.1.4 Innovation and R&DDevelopment

12 Technology Ethics Article 43 Not applicable

3.2.1 Supplier Admission and

Evaluation

13 Supply Chain Security Article 45 3.2.2 Supply Chain ESG Management

3.2.3 Supplier Communication

14 Fair Treatment of SMEs Article 46 Not applicable

Product and Service Safety & 3.1.1 Quality Management15 Article 47

Quality 3.1.2 Customer Service

16 Data Security and Customer Privacy Protection Article 48 3.1.3 Information Security

3.4.1 Diversity Equality and Inclusion

17 Employees Article 50 3.4.2 Employee Rights Protection

3.4.3 Employee Training and

Development

Sustainability Governance

Environment Society5.3 FEEDBACK FORM

Dear Readers

Greetings! Thank you for taking the time to read the 2024 Xiamen Jihong Technology Co. Ltd. Environmental Social and Governance

(ESG) Report. We highly value your feedback and look forward to hearing your thoughts on our ESG management practices and

reporting. Your opinions and suggestions serve as a crucial foundation for us to continuously improve our ESG management and

implementation. We look forward to your response!

2. How would you rate this report overall

1. Which stakeholder category does your organization belong to within Jihong Group

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□ Shareholders and Investors □ Employees □ Suppliers □ Customers □ Government and Regulatory Authorities □ Community

□Partners □ Industry Associations/NGOs □ Other (Please specify):_____________

4. How well do you think this report reflects the Company’s fulfillment of its economic responsibilities

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3. How would you rate the clarity accuracy and completeness of the information and data disclosed in this report

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6. How well do you think this report reflects the Company’s fulfillment of its social responsibilities

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5. How well do you think this report reflects the Company’s fulfillment of its environmental responsibilities

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7. Do you find the information provided in this report to be readable and comprehensible

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9.Do you have any opinions or suggestions regarding the Company’s environmental social and governance efforts or the preparation

8. What content would you like to see included in future reports that has not been disclosed in this one

of this report