About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

CONTENTS

About Easpring Governance Climate Action Quality Innovation and

Development

Company Introduction 07 Sustainability Management 15 Climate Governance 41 Innovation-driven 57

Key Performance of 2024 09 Corporate Governance 29 Climate Strategy 43 Intelligent Manufacturing 67

ESG Awards and Ratings 11 Climate Risk Management 49 Product Quality and Safety 71

Metrics and Targets 53

About the Report 01

Chairman's Statement 03 01 02 03 04

`

Appendix 129 Environmental Protection Value Chain Management Employee and Community Care

Environmental Compliance 77 Supply Chain Management 91 Employee Management 107

Pollutant and Waste Client Service 99 Employee Training and

81115

Management Development

Industry Development 103

Occupational Health and Safety 119

Resource Management 85

Social Contribution 125

05 06 07About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

About the Report Reporting Principles

The report is prepared in accordance with GRI reporting principles：

* Accuracy：The report is dedicated to providing disclosure methods it will be fully explained in the

"Beijing Easpring Material Technology Co. Ltd. 2024 Environmental Social and Governance Report" (ESG Report or the

accurate information. In the process of data notes to the report so that relevant parties can carry

"Report) is the second sustainability report released by Beijing Easpring Material Technology Co. Ltd. (the "Company"

collection collation and analysis the statistical out meaningful analysis and evaluation.or“Easpring"). The purpose of this report is to present the objectives management methods work progress andcaliber and calculation basis of quantitative data are

performance of Easpring related to environmental social and corporate governance to various stakeholders. * Completeness: Unless otherwise stated the scope

clarified and through a strict review process it is of information disclosed in this report covers

ensured that there are no false records misleading Easpring and its subsidiaries.statements or major omissions in the report content.* Sustainability Context: The report identifies

* Balance：The content of the report reflects potential impacts on stakeholders in terms of

objective facts impartially presents Easpring's environmental social and governance in

Reporting Period performance in all aspects of ESG and tries to avoid conjunction with current sustainability trends and

any content that may affect the decision-making or provides management methods and performance

This report covers the period from January 1 2024 to December 31 2024 and some contents are reasonably extended judgment of relevant parties. of Easpring.to enhance comparability and forward-looking reporting. * Clarity：The report provides auxiliary content such * Timeliness：The report is an annual report and is

as charts and terminology definitions. At the same released at the same time as Easpring's 2024 annual

time this report also provides a table of contents report to provide timely information reference for

Reporting Scope and a benchmarking index table of ESG-related stakeholders to make decisions.standards to help relevant parties quickly locate the

* Verifiability：The source and calculation process of

required content.The content contained in this report covers Easpring and its subsidiaries which include: the quantitative data disclosed in the report can be

* Comparability：The report and subsequent annual traced and can be used to support external

ESG reports use consistent disclosure statistical verification.* Jiangsu Easpring Material Technology Co. Ltd. * Easpring (Hong Kong) Co. Limited (hereinafter methods. If there is any change in statistics and

(hereinafter referred to as Easpring Jiangsu) referred to as Easpring Hong Kong)

* Easpring Technology (Changzhou) New Materials Co. * Easpring (Hong Kong) Investment Co. Limited Data Source and Reliability Assurance

Ltd. (hereinafter referred to as Easpring Changzhou) (hereinafter referred to as Easpring HK Investment)

* Easpring SDIG (Panzhihua) New Materials Co. Ltd. * Easpring Investment Lux S.à r.l. (hereinafter referred The financial data cited in this report comes from the audited "2024 Annual Report" of Beijing Easpring Material

(hereinafter referred to as Easpring SDIG Panzhihua) to as Easpring Lux) Technology Co. Ltd. and other data come from Easpring's public information internal official documents and

* Beijing Zodngoc Automatic Technology Co. Ltd. * Easpring Finland New Materials Ltd (hereinafter relevant statistics. Unless otherwise stated the monetary amounts involved in the report are measured in RMB.(hereinafter referred to as Beijing Zodngoc) referred to as Easpring Finland)

* Beijing Dark Horse Intelligence Equipment Co. Ltd. Get and Respond to the Report

(hereinafter referred to as Dark Horse)

Reporting Guidance The report is published in Simplified Chinese and English. In case of ambiguity in the understanding of the text please

refer to the Simplified Chinese version. Readers can check and download the electronic documents of this report on

Easpring's official website (http://www.easpring.com.cn) and cninfo.com (http://www.cninfo.com.cn). If you have any

This report is prepared in accordance with the Self-Regulatory Guidelines No.17 for Companies Listed on Shenzhen questions suggestions and comments about this report please contact Easpring through the following methods.Stock Exchange – Sustainability Report (For Trial Implementation) and Self-Regulatory Guidance No. 3 for Companies Address：Building 21 Area 18 Headquarters Base No. 188 South 4th Ring Road West Fengtai District Beijing China

Listed on the ChiNext Market of Shenzhen Stock Exchange—Preparation of Sustainability Report. Phone：010-52269718

The preparation process of this report complies with the Sustainability Reporting Standards (GRI Standards) of the Fax：010-52269720-9718

Global Reporting Initiative and also refers to the United Nations Sustainable Development Goals (SDGs) and key issues Email：securities@easpring.com

of concern to mainstream ESG ratings at home and abroad.

01 02About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Chairman's Statement

Nowadays the clean energy industry has become a key engine of China's economic growth. In 2024 the We are also setting the benchmark for ESG governance steering Easpring toward

total output value of China's lithium battery industry exceeded RMB 1.2 trillion with a total production of long-term sustainable development. We have continuously refined our corporate

1170 GWh—an impressive 24% year-over-year increase. However as the United States and Europe governance framework and optimized internal policies embedding ESG principles

introduce protectionist policies for their new energy sectors and resource nationalism gains traction the into our core business strategy. In 2024 we upgraded our Strategic Committee to the

industry's business models are undergoing profound shifts. The lithium battery sector has entered a period Strategy and Sustainability Committee further integrating ESG considerations into

of deep adjustment facing numerous uncertainties and challenges. Against this backdrop we seized the corporate decision-making and operations. Following the AA1000 standards we have

opportunity presented by the rapid growth of the energy storage lithium battery market. By working closely established a more transparent and robust engagement mechanism with

with our partners we have successfully expanded our market presence driving strong growth in our lithium stakeholders. Additionally we introduced a Business Ethics Policy ensuring that

iron phosphate (LFP) business. This has become a new pillar of Easpring's development. ethical principles and commitments are embedded throughout our business

operations.We are committed to fostering original technology breakthroughs using innovation to propel the industry

forward. As a technology leader in the global lithium battery cathode material industry Easpring adheres to 2024 is a milestone year for ESG disclosures as global sustainability reporting

the mission of "creating a first-class enterprise and continuously contributing to the era of ecological standards are increasingly aligned. China's A-share market has officially implementedcivilization“. We continue to develop higher energy-density products and solutions delivering greener and standardized ESG disclosure requirements. We released our second consecutivemore efficient cathode materials for lithium batteries. In 2024 our R&D team grew to 430 members with an bilingual ESG report receiving widespread recognition. We achieved A-level and

R&D investment of RMB 370 million. We made significant strides in the development of high-nickel middle- above ratings in leading ESG evaluation systems such as WIND ESG Rating and CNI

nickel high-voltage products and next-generation product development have progressed smoothly. The ESG Rating. In addition we were honored with the Best ESG Practice Case Award by

in-situ construction of fast-ion layers has effectively addressed the challenges on the solid-solid interface the China Association for Public Companies the ESG Golden Bull Top 100 Award and

between the cathode and electrolyte. Additionally high-ionic-conductivity and high-stability nanoscale the Top 50 Central SOEs in ESG distinction. These achievements reinforce our

solid-state electrolytes have been successfully developed. Layered oxide and polyanionic sodium-ion confidence in advancing sustainable development and driving the green energy

cathode materials have achieved large-scale production and application. The next-generation high- transition.compaction-density lithium iron phosphate (LFP) products have reached an industry-leading level. The“Plants with strong root grow well effort with right focus ensure success.“ As wehigh-manganese lithium manganese iron phosphate (LMFP) materials have been successfully deployed in

navigate this historic energy revolution that will shape the future of humankind

large-scale EV applications in the power battery market. In the future we will give full play to our

Easpring is committed to working hand in hand with global partners. Driven by

technological leadership advantages and through the innovation of material system design extreme

innovation we will steadfastly advance toward a greener low-carbon and

manufacturing intelligent factories to meet ever-evolving demands of our clients.sustainable future—contributing our strength to building a world where humanity

We take concrete action in response to climate change integrating sustainability into every aspect of our and nature coexist in harmony.operations. In 2024 we formulated the "Carbon Emission Reduction Plan" which clarified emission targets

based on multiple emission reduction scenarios and pathways. This plan is closely aligned with the national

carbon peaking and carbon neutrality goals. We have also implemented full life-cycle carbon footprint

tracking and calculation for key products enabling precise carbon emission management. By continuously

advancing electrification and clean energy transitions we generated 7807 MWh of solar power in 2024

achieving significant energy savings and reducing carbon emissions by approximately 4462 tCO?e. In

addition Easpring SDIG Panzhihua obtained the ISO 14068 Carbon Neutrality Certification becoming the Chairman of Easpring

first certified carbon-neutral factory in Panzhihua. Chen Yanbin

We actively contribute to community development and help rural revitalization. We remains deeply

engaged with local communities seeking sustainable support mechanisms that drive employment

In recent years extreme weather has occurred frequently around the world heavy educational initiatives and industrial revitalization. We have provided targeted assistance to Pingyu County

rains floods wildfires and high temperatures have ravaged the land and the struggle Henan donating RMB 400000 and investing RMB 1.78 million in poverty alleviation purchases to support

between human civilization and climate change has entered a critical turning point. rural industries. Moreover we continue to care for vulnerable groups through various volunteer activities

In this civilized test global forces are accelerating their gathering. From the historic under the “Learn from Lei Feng” initiative fostering a harmonious and inclusive community environment.conclusion of the "Baku Climate Solidarity Pact" at the United Nations Climate

Conference (COP29) in Azerbaijan to the total global clean energy investment

exceeding US $2 trillion for the first time the green transformation of energy has

become human's collective front line against climate change — a beacon of hope for

breaking the deadlock.

03 04About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

About EaspringAbout Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Company Globalization Distribution

Introduction Headquartered in Beijing Easpring already has five production bases (including under construction and to be built) in Tongzhou Beijing Changzhou Jiangsu Nantong Jiangsu Panzhihua

Sichuan and Kotka Finland and has subsidiaries in Hong Kong Luxembourg Finland and other places.Beijing Easpring Material Technology Co. Ltd.(stock code: 300073) is a listed company under

Mining and Metallurgy Technology Group Co. Ltd. Easpring Finland

Kotka Finland

It was listed on the Growth Enterprise Market of Headquarters

Easpring

Shenzhen Stock Exchange in April 2010. Easpring Beijing the PRCProduction base

is mainly engaged in lithium battery cathode

material business and intelligent equipment

business. Headquarters Beijing Zodngoc

Beijing the PRC

Beijing Easpring Material Technology Co. Ltd.Principal Activities

5 Production bases

Lithium cathode materials business:

Beijing Zodngoc Automatic Technology Co. Ltd.Easpring is mainly engaged in the research and

Jiangsu Easpring Material Technology Co. Ltd.development production and sales of multi-

materials lithium iron phosphate (manganese) Easpring Technology (Changzhou) New Materials Co. Ltd.Easpring Jiangsu

lithium cobalt oxide and other lithium-ion battery

Easpring SDIG (Panzhihua) New Materials Co. Ltd. Jiangsu Province China

cathode materials and multi-precursors. At the

same time it has made multi-dimensional Easpring Finland New Materials Ltd

advanced products independently researched Easpring SDIG Panzhihua

Sichuan Province PRC

and developed a variety of advanced cathode

Easpring Changzhou

materials such as ultra-high nickel multi-element Jiangsu Province China

cobalt-free solid-state lithium battery sodium

battery and new lithium-rich manganese base.Corporate Culture

Intelligent equipment business:

Easpring has always focused on the research and Corporate mission Corporate values Corporate vision Management philosophy

development production and sales of high-end

To create a first-class To be client-centered To build a world's top-ranking innovative Everyone has his own place his own

intelligent equipment and its core control and

enterprise and striver-oriented long- enterprise responsibility and his own talent to be

functional components. It is one of the first

continuously contribute to term hard work To be a respected leader in LIB cathode material applied in his work.domestic companies to develop and produce

the era of ecological sustainable innovation. industry Everything has its own place being in its

circular knife die-cutting equipment. Its products

civilisation Set up a stage for strivers to realize their dreams own position and resources to be utilized.include circular knife die-cutting machines

quality inspection machines etc. which are

mainly used in consumer electronics medical Business philosophy Employment philosophy Talent cultivation philosophy Code of conduct

care health food packaging and other fields.Honest Pragmatic To choose talents with virtue To develop talents and help them To be frugal in words swift in action; cautious in

Diligent Innovative and potential make progress discussion diligent in thought; unpretentious in

appearance skilled in craft.

07 08About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Key Performance of 2024

During the reporting period Easpring's ESG management performance is as follows:

Economic performance Social performance

Total assets Operating income Net profit

R&D investment A total of

RMB 17122 million RMB 7593 million RMB 473 million

RMB 370 million 430 R&D personnel 352 patents have been granted in China and abroad

Primary earnings per share The total amount of taxes paid is about

0.9316 RMB/share RMB 290 million

A total of 45 copyrights have Employee satisfaction score is The proportion of ethnic minority

been authorized 94.0 employees reaches 8%

Governance performance

2 sophisticated and Total employee training

Signing rate of the Letter of Commitment to Integrity Proportion of employees participating in specialized enterprises and 100% of the main expenditure

and Ten Prohibitions for Integrity is 100% anti-corruption training100% 1 material suppliers have signed laboratory has obtained the Supplier Code of Conduct RMB 1.0336 million

CNAS certification

0 incidents of corruption and bribery 0 data security incidents

Cash welfare investment Non-cash welfare The total investment in safety

amount RMB investment amount RMB production is approximately

24.4884 million 12.6005 million 14.4855 millionSigning rate of compliance commitment

Compliance training coverage100% letter is100%

Investment in work injury Cumulative investment in

Environmental Performance A total of 127employees 1.1932 social public welfare RMB insurance RMB

million 2.5504 million volunteered and served 528

4462 Purchased carbon credits to offset

hours

Greenhouse gas emissions reduction

tonnes of CO2e through various measures 31665.12 tonnes of CO2e

Easpring SDIG Panzhihua obtained the ISO14068 carbon 100% of the cathode material production bases have obtained the 100% complaint handling

Photovoltaic power generated ISO 9001 Quality Management System certification rate for products and services

7807.51 neutral certificate became the first "carbon MWh neutral factory" in Panzhihua

Total investment in environmental protection 100% of cathode material operating production 100% of the cathode material production bases have obtained the ISO 45001

RMB 1399.12 million bases obtained ISO 14001 environmental management Occupational Health and Safety Management System certification

system certification

09 10About Easpring Governance Climate Action Quality Innovation and Development EnEvnirvoinromnemnetanlt Palr oPtreocteticotnion Value Chain Management Employee and Community Care Appendix ESG Report 2024

ESG Awards and ESG Awards and Ratings

Ratings

The ESG honors and awards obtained by Easpring during the Year mainly

include:

The 2nd Guoxin Cup ● ESG Golden Bull Award The 2nd Guoxin Cup ● Top 100 ESG Golden

Top 50 Central Enterprises Bull Awards

No. Honors and awards Issuing authority China Securities Journal China Securities Journal

Ministry of Human Resources and Social Security

of the People's Republic of China

Advanced Collective of

1 State-owned Assets Supervision

Central Enterprises

andAdministration Commission of the State

Council

Beijing Municipal Science & Technology

Commission

2 Beijing High-tech Enterprise Beijing Municipal Finance Bureau 2024 Public Company Sustainability Best The 3rd Xinhua Credit Jinlan Cup ESG

Practice Cases Excellent Cases

Beijing Municipal Tax Service State Taxation

Administration China Association of Listed Companies China Economic Information Service

Specialized and

Sophisticated Small and Beijing Municipal Bureau of Economy and

3

Medium-sized Enterprises Information Technology

(SMEs) in Beijing

Jiangsu Economy and Information Technology

Commission

Jiangsu Development & Reform Commission

Jiangsu Province Jiangsu Provincial Department of Science and

4 Recognized Enterprise Technology

Technology Center Department of Finance of Jiangsu Province

Jiangsu Provincial Tax Service State Taxation

Administration

Nanjing Customs District P.R.CHINA

Industry and Information Technology Department

Jiangsu Intelligent

5 of Jiangsu

Workshop

Department of Finance of Jiangsu Province

Provincial-level Specialized Jiangsu Provincial Department of Industry and wind wind（A） Refinitiv ESG（68） CNI ESG（AA） CSA S&P（34）

6

and Sophisticated SMEs Information Technology

Jiangsu Engineering

7 Jiangsu Development & Reform Commission

Research Center

8 Jiangsu Gazelle Enterprise Productivity Center Of Jiangsu Province

11 1026About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Governance

Easpring is committed to integrating sustainable development into daily operations establishing good

relationships with various stakeholders and ensuring Easpring's sustainable development and long-term

value. At the same time Easpring adheres to the concept of compliance integrity and stable operation

constantly improves the scientificity and transparency of decision-making improves the risk management

and control system and abides by the business code of conduct with high ethical standards to protect the

steady development of Easpring.Responses to issues in this chapter

* Corporate governance * Data security and client privacy protection

* Risk management * Anti-unfair competition

* Anti-commercial bribery and anti-corruption

This chapter responds to SDGs

Key Performance in this Chapter

* Compliance training coverage 100%

* Signing rate of compliance commitment letter 100%

* Proportion of employees participating in anti-corruption training 100%

* The signing rate of the "Letter of Commitment to Integrity" and "Ten Prohibitions for Integrity" is 100%

* The corruption and bribery incident is 0

* The data security incident is 0About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Sustainability Management Personnel composition and responsibilities of ESG governance structure

Under the background of the deepening of the new global consensus on sustainable development Easpring has deeply Organizational

integrated the core concept of ESG into Easpring's business operation and strategic decision-making built a multi-level structure Personnel organization Responsibility

ESG vision policy and governance system promoted the achievement of the SDGs established communication with

global stakeholders and helped the global green economy transformation and sustainable development of mankind Establish a top-down standardized and effective ESG

management framework under the leadership of the board of

through co-creation of issues value sharing and responsibility sharing.directors. The board has established a Strategy and

Sustainability Committee which is responsible for researching

Strategy and

7 Directors including 2 and proposing recommendations on Easpring's ESG

Sustainable Development Governance Sustainability independent Directors and 1 development strategy and management of ESG-related issues. Committee of

female Director The committee is in charge of managing and supervising the

the Board

impacts risks and opportunities related to sustainable

development guiding and overseeing the implementation and

Sustainability Governance Structure improvement of ESG initiatives and reporting to the board of

directors.Under the leadership of the board of directors Easpring has formed an ESG governance structure including decision-

making management and executive levels and clarified the composition and responsibilities of each level to provide Responsible for the organization implementation and

promotion of Easpring's ESG work organizing and

organizational guarantee for the effective development of Easpring's ESG work.ESG Leadership implementing Easpring's annual ESG development strategy

Company executives

Group management work plan and objectives revision of ESG-related

systems identification and management of ESG risks ESG

Board of Directors performance evaluation and management etc.Strategy and Sustainability Committee Heads of functional Responsible for information collection analysis and

departments of Easpring's improvement of relevant ESG issues understanding and

ESG Leadership Group ESG Task Force1 headquarters and relevant responding to the expectations of stakeholders and reporting

departments of subsidiaries ESG-related work to the ESG leading group.Leading Department: Legal & Risk Management Department

Environmental Task Force Product Task Force Employee Task Force Corporate Governance Task Force

Headquarters Carbon & Energy Quality Center Intellectual Human Resources Securities Affairs Department

Management Department The leading department of Easpring's ESG work is the Legal & Risk Management Department which is directly led by Functions Property Department etc. Department etc. Audit Department etc.Experimental Center etc. Easpring's general manager. It is responsible for coordinating the ESG management work of all relevant business

departments and subsidiaries. The ESG specialist of the headquarters and the ESG secretaries of the subsidiaries

Easpring Procurement Department EHS Department Facility Human Resources

Changzhou Quality Management Finance Department etc. jointly build an effective ESG work network and establish an ESG working mechanism with dynamic response and Management Department Department etc.Department etc. effective communication to ensure that ESG practices can be effectively implemented and promote the realization of

long-term sustainable development goals.Easpring Procurement Department EHS Department Facility Human Resources

Jiangsu Quality Management Finance Department etc.Management Department Department etc. During the reporting period Easpring renamed the "Strategy Committee" as the "Strategy and Sustainability

Department etc.Committee". The members have professional backgrounds in human resources business ethics safety and

environmental protection quality supply chain and compliance risk management and have high professionalism and

Easpring SDIG Procurement Department Human Resources EHS Department Facility

Panzhihua Quality Management Department Administrative Finance Department etc. diversity. The Committee leverages its professional advantages to conduct forward-looking research and scientific Management Department

Department etc. Management Department

decision-making on ESG governance and other aspects identify and manage Easpring's substantive issues and

Beijing Procurement Department Human Resources complete the review of Easpring's annual ESG report.Zodngoc General manager's office Quality Management Department Administrative Finance Department etc.Department etc. Management Department

ESG Governance Structure 1 ESG Task Force covers Environmental Task Force Product Task Force Employee Task Force and Corporate Governance Task Force

15 16About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Sustainability Governance Strategy

Easpring adheres to the path of green high-quality and sustainable development insisits on innovation-driven development and constantly explores new products and new processes practice quality first and win the trust of clients with high-quality products and

services promote green production methods and build a green environmentally friendly energy-saving efficient and low-carbon cycle production system improve the governance system and realize scientific and standardized compliance governance actively give

back to the society pay attention to the growth of employees unite the upstream and downstream industrial chain for coordinated development and share the development results with clients shareholders employees industry and society.ESG Vision ESG Policy* Adhering to the mission of “create a first-class enterprise and continuously contributing to the ecological * Sustaining innovation excellent quality green cycle compliance governance harmonious sharingcivilization era” we promotes energy transformation with green materials and intelligent manufacturing

and create corporate value with integrity and excellent operation. Additionally we works together with

clients shareholders employees industry and community to achieve sustainable development.Sustainability Risk Management

On the basis of the ESG governance structure Easpring integrates ESG risk management into the operation management system formulates and implements the " Easpring ESG Management Measures" and outputs supporting work manuals and instrumental

documents to accurately identify and prudently evaluate ESG risks that may be faced in the business dynamic monitoring timely improvement and tracking management to achieve comprehensive management of Easpring's ESG risks.ESG Risk Management Steps

Identifying Risks Assessing Risks Managing Risks Monitoring and Reporting

* Carry out surveys seminars interviews with * Analyze the likelihood of occurrence and * The ESG Task Force formulates and implements * Continuously monitor changes in internal and

risk owners and other methods to identify impact of ESG risks to prioritize key risks and measures to mitigate transfer or avoid risks and external environment and make timely revisions

ESG-related risks in strategic decisions and effectively allocate resources to address them. formulates contingency plans to minimize the ESG risk response measures and priorities and

important business processes; adverse effects of identified risks. review them periodically.* Further refine and identify environmental risks * Easpring tracks and accepts the improvement * Report ESG performance to the management

social risks and corporate governance related results of the ESG Task Force. and establish ESG risk awareness and

risks against ESG issues and external continuous management capabilities of all

regulatory requirements. employees within Easpring.

17 18About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

In the context of global ESG risks continuing to rise ESG risk management has become one of the keys to building the

core competitiveness of Easpring's overseas projects. Easpring has built an ESG risk management system throughout

the entire project life cycle established an ESG risk screening mechanism during the due diligence stage of the

investment front-end and integrated into international standards such as EU Corporate Sustainability Reporting

Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). At the same time internationally renowned accounting firms conducted ESG due diligence reviews on Finnish

project's suppliers emphasizing the importance of ESG during the project implementation process fully reviewing

suppliers and comprehensively evaluating each supplier's commitment to sustainable development. and practice

Applying rules based on principle for responsible investment Easpring organized internal providing a solid foundation for smooth project recommendation.and external experts and consulting agencies in finance and taxation safety environmental

Before project protection legal affairs compliance etc. to conduct due diligence and paid attention to

investment ESG indicators such as production carbon emissions proportion of green energy usage and

impact on the environment of the project to ensure that they comply with ESG-related laws

regulations and standards.Easpring continues to follow up on the financial indicators and operation of investment

Investment projects supervises whether the project companies comply with relevant laws and

implementati

on stage regulations such as environmental protection and labor and actively follows up on the

research and development and upgrading of renewable energy and clean technologies.Post- Easpring regularly evaluates projects covering multiple dimensions such as market

investment conditions financial performance compliance operations and social responsibility and

management ensures the realization of ESG management objectives through risk response plans and

stage improvement of corporate governance structure.During the reporting period Easpring submitted the environmental

license application for the first phase of multi-material production line

to the local government of Finland. Based on the design concept of

"green environmental protection energy saving high efficiency

intelligence and wisdom" the new project fully met the requirements of

the Finnish government and overseas partners for the environmental

sustainable development of the project and the EIA approval process

was successfully completed in less than six months.Cover page of the Easpring Finland 's

environmental permit approval document

19 20About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Sustainable Development Goals

In response to the United Nations 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals

(SDGs) Easpring identifies its role in solving social and environmental problems matches its core business activities Goal 3 Good Health and Well-being

with the goals of the SDGs and ensures that Easpring's efforts are consistent with the global vision of sustainable * To ensure the health and safety of employees Easpring set and achieved the goal of "0 death 0 fire and 0

development. Specifically Easpring has carried out key actions around the following sustainability goals. new occupational case".* Achieve 100% rectification rate of potential safety hazards and 100% completion rate of employee

occupational health examination.Key Company Actions in 2024

Goal 4 Quality Education

Goal 1 No Poverty * Continue to carry out caring activities for the disabled for designated assistance units constantly

meet children's learning and activity needs and continuously improve and optimize the learning and

* Through various forms such as consumption assistance financial donations and targeted assistance Easpring solves the living environment.development problems of the assistance areas continuously consolidate and expand the achievements of poverty alleviationand continue to promote the development of poverty-stricken areas and rural revitalization. * Carry out the“Pursuing dreams of education" campaign set up scholarships and link them to theirsalary levels and continue to promote the improvement of Easpring's youth literacy and the

construction of industrial workers.Goal 17 Partnerships for the Goal

* Linkage business partners upstream and downstream of the value chain continue to carry out technical Goal 5 Gender Equality

exchanges and continuously deepen industry exchanges.* * Pay attention to the diversity of the board of directors and continuously increase the Optimize client service quality improve client satisfaction and respond to client needs in a timely manner.proportion of female directors and management.* Implement the concern and emphasis on female employees and create a company

Goal 16 Peace Justice and Strong Institutions atmosphere full of humanistic care

* Continuously carry out business ethics and integrity management effectively operate the risk control

management system and continuously improve Easpring's compliance management level. Goal 7 Affordable and Clean Energy

* The signing rate of employees' "Integrity Commitment Letter" and the signing rate of suppliers' * Provide advanced key materials for the new energy industry continue to achieve innovative

"Sunshine Cooperation Agreement" reached 100%. breakthroughs build a forward-looking R&D layout provide technical solutions for the application and

promotion of new energy and promote social energy transformation.Goal 15 Life on Land * Develop and continuously increase investment in renewable energy infrastructure actively implement

energy-saving technological transformation projects and improve energy efficiency.* New projects strictly implement environmental impact assessment requirements and the project construction Sustainable

meets the ecological environment zoning management and control requirements of "three lines and one list" Development Goals

(ecological protection red line environmental quality bottom line resource utilization online and ecological Goal 8 Decent Work and Economic Growth

environment access list). (SDGs) * Create an equal harmonious and diverse workplace environment and provide jobs and

* Prioritize sustainable cooperation with supplier partners who provide environmentally friendly products or employment opportunities for people with disabilities.services to achieve double savings in production resources and manufacturing costs. * Implement several rounds of equity increase plans for management and core backbones to

further encourage the management team and core backbones to create value.Goal 14 Life below Water

* Continue to optimize the production wastewater treatment process to achieve "near-zero discharge" of Goal 9 Industry Innovation and Infrastructure

production wastewater. * Accelerate the high-quality research and development of cathode materials improve

* The reuse transformation of precursor wastewater was carried out and the washing water reuse rate of competitiveness in the field of multi-materials and precursors and lead the development of

more than 90% was achieved. the industry.* Consolidate the foundation of product quality management promote intelligent

Goal 13 Climate Action manufacturing upgrades and achieve double improvement in quality and efficiency.* Actively respond to climate change identify climate-related risks and accurately invest Easpring's superior resources in

climate risk response actions. Goal 10 Reduce Inequalities

* Lay out the clean business strategy build a carbon neutral factory plan the dual-carbon development path and * The Human Rights Policy has been formulated and published on the Internet to provide employees with

promote the green and low-carbon transformation of the business. diversified care and benefits and create an equal and inclusive working environment.* Adhere to equal employment opportunities recruit and employ ethnic minority employees from different

Goal 12 Responsible Consumption and Production ethnic groups and ethnic minorities account for 12% of the management.* Increase the proportion of clean energy use implement energy conservation and carbon reduction measures reduce pollutant

emissions and practice sustainable development. Goal 11 Sustainable Cities and Communities

* Continue to build a circular low-carbon open transparent and mutually beneficial green and sustainable supply chain * Take measures such as saving water in production to build water-saving enterprises from carrying out daily operation and

incorporate key carbon management indicators such as total carbon emissions and carbon footprint intensity into the supplier maintenance to implementing special equipment water-saving projects effectively reduce municipal water consumption alleviate

evaluation system and promote the recycling of key raw materials in the industrial chain. social water pressure and help sustainable city and community construction.

21 22About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Materiality Assessment of Issues

Stakeholder Communication

Adhering to the principles of integrity interaction equality and transparency Easpring actively interacts with stakeholders through regular multi-channel and multi-form stakeholder communication channels to understand their suggestions and feedback which

serves as an important basis for improving Easpring's operating policy and sustainable development strategy.During the Reporting Period Easpring regularly recorded measured and reviewed the communication with stakeholders in accordance with relevant international standards and guidelines such as GRI Standards and AA1000 Stakeholder Communication Standards

improved the communication mechanism in a timely manner based on the feedback from stakeholders and continuously improved the effectiveness and timeliness of communication with all stakeholders.The communication between Easpring and various stakeholders is as follows:

Stakeholders Government and Client Shareholders and Suppliers Directors and Senior Staff Community Media and NGOs

Regulatory Authorities Investors Management

* Anti-commercial * Product quality and safety * Corporate governance * Industry Cooperation * Risk management * Occupational health and safety * Community contribution * Innovation driven

bribery and anti- * Client service and * Risk management and Development * Occupational health * Compliance employment * Rural revitalization * Social contribution

corruption communication * Innovation driven * Responsible supply and safety * Employee development * Compliance employment and rural revitalization

* Innovation driven * Responsible supply chain chain* Intellectual property * Innovation drivenExpectations * Employee rights and benefits * Pollutant emissions

* Responsible supply

* Pollutant emissions

of * Responding to climate management

* Equal treatment to * Product quality and chain* Equality diversity inclusion * Utilization of water

* Utilization of energy change SMEs safety resources * Responding to climate stakeholders * Chemicals management

* Environmental * Data security and client * Anti-commercial * Employee rights and change

compliance privacy protection bribery and anti- benefits * Data security and

management corruption* Compliance marketing client privacy

* Anti-unfair competition protection

* Information * Company mail (as required) * Company mail (as required) * Technical seminars (as * Company mail (as * Company mail (as required) * Inspection and survey (twice * Media interview

submission (as * Client satisfaction survey * Roadshow communication needed) required) * Telephone or verbal notification (as a year) activities (as required)

required) (once a year) (as required) * Business negotiations * Communication required) * Daily care (quarterly) * Press conferences (as

* Seminar meeting (as * Industry exhibitions (as * Performance briefing (once (as required) meetings (as * Notification of trade union group and * Communication of required)

required) required) a year) * Industry conferences (as required) employees' group (as required) assistance needs (once a * Press releases (irregular)

Communication * Daily approvals (as

methods and * Technical seminars (once a * Investor Meetings (as

required) * Board meetings (as * Employee satisfaction survey (annually) year) * Industry exhibitions (as

required) month) required) * Supplier Meeting required)

frequency * Q&A session (when needed)

* Policy implementation and required)

* Inspection and * Business negotiations (as * Interactive Q&A (once a (annually) * Special committee communication (as needed)* Suggestion box (collected once a * Communications and

research (as required) required) month) * Supplier training (once a meetings (as month) * Employee volunteering (as visits(as required)

* Policy required)* Investor Hotline (every year) needed)* Trade union and workers' congress

implementation and trading day) * Supplier satisfaction * Internal meetings (as (irregular) * Communications and

communication (as survey (annually) required)* Research visits (as required) visits(as required)

needed) * Management Reception Day (monthly)

* Ethnic minority festival

* Employee workshop (irregular)

interaction (once a year)

23 24About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Materiality Assessment Issue Identification

Based on its own strategic planning and operating practices Easpring refers to the Self-Regulatory Guidelines No.17 for Easpring complies the Self-Regulatory Guidelines No.17 for Companies Listed on Shenzhen Stock Exchange –

Companies Listed on Shenzhen Stock Exchange – Sustainability Report (For Trial Implementation) and Self-Regulatory Sustainability Report (For Trial Implementation) and fully combines Easpring's business activities business

Guidance No. 3 for Companies Listed on the ChiNext Market of Shenzhen Stock Exchange —Preparation of relationships ESG standards ESG ratings peer practices and other factors to establish the Easpring "1 + N" materiality

Sustainability Report and GRI standards and other disclosure standards have updated the issue assessment method issue database.and carried out double materiality assessment. The double materiality assessment process carried out by Easpring is as Impact Materiality Assessment

follows:

Easpring assesses the importance of the impact of each topic based on the two dimensions of "Impact degree

Step 1 assessment" and "Possibility assessment" through questionnaire surveys with stakeholders and communication with

Issue identification internal and external ESG experts.Identify potentially important issues and establish an issue bank based on Easpring's business

activities business relationships ESG standards and other factors

Dimension 1：Impact degree assessment

Step 2 * Scale: The magnitude of the impact. For positive impacts it refers to the degree of benefit or potential benefit.

2-1 Impact materiality assessment * Scope: The extent of the impact. For example the number of individuals or the range of environmental

Degree of impact (including scale scope irremediability): stakeholder questionnaire survey resources affected or potentially affected by positive impacts.Possibility: internal and external ESG expert assessment * Irreversibility: The difficulty of offsetting or compensating for the harm.

2-2 Financial materiality assessment

Assess the financial materiality of each issue from the two dimensions of impact degree and possibility

of occurrence integrate expert opinions on finance and sustainability and review the assessment

results by senior management Dimension 2：Possibility assessment

* The potential for negative impacts refers to the likelihood or probability of adverse effects occurring.Step 3

Double materiality assessment analysis

During the reporting period Easpring conducted stakeholder questionnaire survey and distributed online survey

Based on the assessment data in Step 2 form a matrix of materiality issues in 2024 and determine the

questionnaires to 11 types of stakeholders. A total of 127 questionnaires were collected in this survey and the

materiality issues and their priorities for the year

stakeholders' impact and importance assessment on each topic were identified. After communicating with relevant

stakeholders and external experts 30 issues with impact and importance were finally determined.Step 4

Issue identification and report

The Board of Directors of Easpring reviews and confirms ESG materiality issues ensures that the issues

are closely aligned with Easpring's ESG management practices and discloses them in the annual ESG 2 In the “1+N'” framework the '1' refers to the Self-Regulatory Guidelines No. 17 for Listed Companies—Sustainable Development Report (Trial) and the

report 'N' refers to mainstream ESG ratings ESG special reports of centrally-controlled listed companies and peer company issues.

25 26About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Results of Double Materiality Assessment

General Impact Materiality Issues: Circular economy Waste disposal Utilization of Easpring sorted out the impact materiality and financial materiality assessment results comprehensively analyzed and

water resources Compliance marketing Supply chain security Equal treatment to ranked the materiality of relevant issues and the materiality assessment results of issues were reviewed by the

SMEs Equality diversity inclusion Social contribution and rural revitalization Strategy and Sustainability Committee and approved by the Board. According to the evaluation results Easpring

Ecosystem and biodiversity conservation Ethics of science and technology Anti-unfair sorted out the sustainable development strategy and goal setting and re-examined the management of significant

competition Data security and client privacy protection sustainable development-related impacts risks and opportunities. At the same time Easpring makes targeted

information disclosure according to the priority of the evaluation results so as to ensure targeted response to the

concerns of all parties. Among them the topic of "Response to Climate Change" is of high double importance to

Easpring. Therefore this report discloses the topic of "Response to Climate Change" from four elements: "Governance"

Moderate Impact Materiality Issues: Corporate governance Intellectual property "Strategy" "Impact Risk and Opportunity Management" and "Indicators and Targets" in accordance with the

management Responsible supply chain Risk management Utilization of energy requirements of the Self-Regulatory Guidelines No.17 for Companies Listed on Shenzhen Stock Exchange –

client service and communication Digital construction Anti-commercial bribery and Sustainability Report (For Trial Implementation).anti-corruption Pollutant emissions Compliance employment Environmental

compliance management Employee development Employee rights and benefits

High

Chemicals management 1Materiality 3

24

High Materiality

7

115

High Impact Materiality Issues: Innovation driven Product quality and safety Moderate Materiality8

6

Occupational health and safety Responding to climate change Impact

Materiality to Low Materiality

14109

Stakeholders

201612

17 13 Environmental

15

21 Issues

Financial Materiality Assessment 24

18 Social22

27

Easpring comprehensively considers factors such as market price trend forecast Easpring's costs and profits in 25 19 Issues

previous years as well as the possibility of occurrence and evaluates the financial importance of each issue from two 28 26 23 Governance Issues

dimensions: the degree of financial impact the possibility of risks and opportunities and has successively reviewed and 29

Low 30

finally confirmed by the finance department ESG Task Force and ESG Leadership Group. Materiality

Low Materiality Financial Materiality to Easpring High Materiality

List of Materiality Issues

1 Innovation driven 11 Digital construction 21 Circular economy

Dimension 1：The degree of financial impact Anti-commercial bribery and anti-2 Product quality and safety 12 22 Waste disposal

corruption

* Analysis can be conducted from perspectives such as the continuity of resource use and the dependency on 3 Occupational health and safety 13 Pollutant emissions 23 Utilization of water resources

the relationship for ongoing business operations (for example investors upstream suppliers downstream 4 Responding to climate change 14 Compliance employment 24 Compliance marketing

clients etc.). Environmental compliance

5 Corporate governance 15 25 Supply chain security

management

Intellectual property

6 16 Employee development 26 Equal treatment to SMEs

management

Dimension 2：The possibility of risks and opportunities 7 Responsible supply chain 17 Employee rights and benefits 27 Equality diversity inclusion

Data security and client privacy Social contribution and rural

8 Risk management 18 28

* protection revitalizationThe possibility of financial impact occurring needs to take into account the cumulative probability over a

9 Utilization of energy 19 Anti-unfair competition 29 Ecosystem and biodiversity conservation

period of time to cover the long-term scope.

10 client service and communication 20 Chemicals management 30 Ethics of science and technology

27 28About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Corporate Governance Diversity and Independence

The diversity of board members is of great significance to improve corporate governance and ensure the effectiveness

of the board of directors. Easpring follows the international ESG governance concept improves the diversity level of

the Board and ensures that the Board has appropriate skills experience and diversified perspectives according to the

Easpring has always strictly abided by The Company Law of the People's Republic of China the Securities Law of the needs of Easpring's business. Easpring's directors have backgrounds in strategic planning corporate management

People's Republic of China the Code of Corporate Governance for Listed Companies the Listing Rules governing the battery material research and development financial internal control industrial investment capital operation and

listing of stocks on ChiNext Markst of shenzhen stock Exchange the Guidelines for Self-Regulation of Listed Companies other disciplines and have a reasonable professional structure. During the reporting period there was one female

of Shenzhen Stock Exchange No.2-Standardized Operation of Listed Companies on GEM and other relevant laws director accounting for 11.11%.regulations and normative documents continuously standardized Easpring's operation strived to improve the level of

Independent directors play a key role in the board of directors system. The independent directors of Easpring combine

corporate governance and ensure the compliance and stability of Easpring's operation.their professional expertise to participate in various major decisions of Easpring and prudently express independent

opinions safeguarding the legitimate rights and interests of Easpring and all shareholders and improving the

Governance System scientificity and professionalism of the board of directors' decisions. The audit committee remuneration and appraisal

committee and nomination committee under Easpring's board of directors are all chaired by independent directors

and independent directors account for more than half.Governance Structure During the reporting period all independent directors submitted the Independence Self-examination Form of

Independent Directors. The board of directors of Easpring evaluated the independence of independent directors and

Easpring has established a governance structure consisting of the general meeting of shareholders the board of issued special opinions. Easpring did not have any situation affecting the independence of independent directors.directors the board of supervisors and the management of Easpring and strictly follows the corporate governance

structure to exercise and perform their duties through the election of directors and supervisors at the general meeting Training for Directors Supervisors and Senior Management

of shareholders and the appointment of senior management by the board of directors so as to give full play to the role

of the highest authority of the general meeting of shareholders the major decisions of the board of directors the In order to cultivate the ESG awareness of directors Easpring's directors supervisors and senior executives receive

supervision of the board of supervisors the execution by the management and the support of the special committees of training on ESG matters in a regular basis including ESG topics such as anti-corruption environmental protection and

the board of directors in the decision-making of the board of directors. carbon emissions so as to enhance their understanding and understanding of ESG and improve Easpring's ESG

governance capabilities. During the reporting period Easpring's directors supervisors and senior executives

During the reporting period Easpring held a general election of the board of directors. The sixth board of directors

participated in ESG training a total of 19 times training coverage rate is 100%.consisted of 9 directors including 6 non-independent directors and 3 independent directors. For details of basic

personnel information please refer to the chapter " Easpring 2024 Annual Report-Section IV Corporate Governance-VII. Performance Assessment

Directors Supervisors and Senior Management".Easpring convenes the general meeting of shareholders the Board of Directors and the Board of Supervisors in strict

accordance with the Articles of Association the Rules of Procedure for the General Meeting of Shareholders the Rules

of Procedure for the Board of Directors the Rules of Procedure for the Board of Supervisors and other regulations and

General Meeting of Shareholders requirements so as to ensure that all business decisions are objectively scientifically and effectively safeguard the

interests of Easpring and all shareholders. During the Reporting Period the Board reviewed 76 proposals including 15

Strategy and Sustainability Committee proposals related to ESG.Supervisory Committee Adhering to the principle of "remuneration is compatible with Easpring's benefits and combined with Easpring's long-

term interests" Easpring links remuneration assessment with ESG sustainable development indicators. During the

Audit Committee Reporting Period Easpring revised the "Remuneration Management System for Directors" and "Remuneration and

Appraisal Management for Senior Management" and other systems including ESG indicators such as safety quality

The Board and compliance management into the senior management's annual operating performance appraisal responsibility

Remuneration and Appraisal Committee letter and set corresponding appraisal weights.At the same time Easpring has established a restraint mechanism for executive compensation. If major environmental

Management

Nomination Committee safety compliance ESG events and other aspects cause significant losses to Easpring or cause operational difficulties

or decline in Easpring's reputation the board of directors shall decide to partially or completely cancel the responsible

person's performance compensation for the year.Corporate Governance Structure Diagram

29 30About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Business Ethics

Ten Prohibitions in the Honest Commercial Practice

Business Ethics Management

* Do not conduct covert deals collude on base prices disclose trade * Do not privately accept any money or items from business units (including

Easpring always upholds the concept of honesty and integrity and has zero

secrets of the Company or seek personal benefits cash electronic red envelopes gift cards securities other types of tolerance for all violations of business ethics and corruption. Easpring

payment vouchers and gifts). The received gifts must be handed over to

strictly abides by the Anti-Money Laundering Law of the People's Republic of

China the Supervision Law of the People's Republic of China the Company's General Manager Officeand other laws * Do not engage in activities that seek personal benefits by taking

and regulations is committed to conducting business in accordance with all advantage of the convenience of one's own work or the Company's * Do not engage in any private transactions or borrowing of property with

applicable laws regulations and the highest business ethics standards and resources business units

thoroughly implements the commitment to attaching importance to * Do not sign false contracts conceal transfer or hold back customer

business ethics into Easpring's policies and the entire process of business * Do not accept any form of banquet invitation from suppliersreturns and supplier payments

development. During the Reporting Period there was no incident of

commercial bribery and corruption. * Do not misrepresent or misappropriate business funds * Do not attend non-work related meetings with suppliers

Easpring continues to improve the system of business ethics and integrity

formulates the Anti-Fraud and Complaint Reporting Management System * Do not seek improper benefits from business units by exploiting the * Do not organise or participate in any unhealthy entertainment

Anti-Corruption and Anti-Bribery System and other systems and publishes power on hand

the Business Ethics Policy on the official website of Easpring the anti-fraud

policy complaint reporting process and protection measures for

complaints and whistleblowers on the official account of Easpring requiring

all employees clients suppliers service providers contractors and other Easpring conducts regular identification and training for positions with high integrity risks including regular integrity training for directors supervisors and senior management

partners to follow the policies and standards of Easpring. During the pre-job integrity education for new employees and on-site warning education for personnel in procurement sales and engineering positions. At the same time Easpring adopts

reporting period Easpring conducted business ethics surveys covering all new educational methods such as interactive and experiential including interactive mini-games online integrity answers holiday integrity reminder videos collective learning and

operating factories to ensure that business operations comply with other forms to effectively improve personnel's awareness and level of integrity. During the Reporting Period Easpring's employees participated in business ethics training for 1501

Easpring's ethical standards. hours in total and the proportion of employees participating in business ethics training reached 100%.Easpring thoroughly implemented the commitment to attach importance to

business ethics in the whole process of Easpring's policies and business

development carry out joint integrity control projects comprehensively

sort out the rules and regulations business processes power operation and

other links identify potential integrity risk points and formulate targeted

prevention and control measures. At the same time taking the opportunity

of information construction such as SAP and MES Easpring embedded the

joint integrity control project into the information system organically

integrated risk prevention and control with the business development and

further improved the integrity management capability.Construction of Integrity Culture

In order to protect the interests of all stakeholders and maintain a fair and

clear business environment Easpring signed the "Ten Prohibitions for

Integrity" and "Integrity Commitment Letter" with all employees which

restrict employees' external business behavior and daily style and clearly

stipulate that all employees are prohibited from soliciting accepting or Integrity Warning Education Ethics Training for Key Posts

accepting gifts property and securities from suppliers potential partners

and other units or individuals related to the exercise of their functions and

powers and are prohibited from accepting banquets travel fitness and

entertainment activities that may affect the fair exercise of their functions

and powers.

31 32About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Supplier Integrity Management Complaints and Reports

Easpring has always set high standards for itself strictly abides by business Easpring has established a smooth timely and effective reporting channel which is made public on the official website and WeChat official account. All parties in

ethics and relevant laws and regulations and expects suppliers to share the the society can complain and report any violation of business ethics corruption bribery and fraud through the reporting channels below.same commitment. Easpring has formulated the Code of Conduct for

Suppliers which requires suppliers to adopt a zero-tolerance policy for

violations of business ethics and signed the Sunshine Cooperation

Agreement with partners requiring them not to ask for or accept kickbacks

benefits thanks fees gifts securities and valuables during the cooperation Complaint reporting channels:

Easpring encourages and advocates

process and not to use business relationships to seek personal benefits.real-name complaints and reports

During the reporting period the signing rate of suppliers' "Sunshine

Cooperation Agreement" was 100%. On-site complaints and reports

and accepts anonymous complaints

and reports. According to the degree

Easpring strengthens supplier compliance supervision conducts regular of loss recovery of the complaints

supplier reviews clarifies the code of conduct of both parties in business Telephone complaint report: 010-52269709 and reports Easpring commends

dealings and jointly creates a fair and transparent cooperation and reward the complaints and

environment. Easpring conducts supplier integrity seminars and integrity whistleblowers and encourage

training every year to help them understand and comply with relevant laws E-mail complaints: shenji@easpring.com employees personnel from external

and regulations and Easpring's integrity policies and prevent corruption units and other internal and external

risks from the source. During the reporting period Easpring held the 2024 relevant parties to report violations

Mailing address for letter complaints and reports: Easpring Audit Department Building 21 Area 18 Headquarters

annual partner symposium to publicize and implement suppliers around of professional ethics corruption

Base No.188 South Fourth Ring West Road Fengtai District Beijing (Zip Code: 100160)

the "Sunshine Cooperation Agreement" "Business Ethics Policy" and bribery and fraud."Integrity Practice" and the supplier training coverage rate was 100%.Whistleblower Protection

Easpring strictly keeps confidential the identity information of the complainant and whistleblower and all complaint and report materials received keeps confidential in all aspects

such as reporting acceptance and investigation and strictly prohibits disclosure of the personal privacy information of the complainant and whistleblower. No department or

individual may retaliate against the whistleblower under any pretext. When the personal safety of the whistleblower is threatened Easpring will take timely protective measures

and investigate the corresponding responsibilities for the whistleblower who retaliates; Anyone suspected of committing a crime will be transferred to the judicial organ to

safeguard the rights and interests of the whistleblower according to law. During the Reporting Period there was no incident of information leakage or retaliation by whistleblower.

2024 Annual Partner Workshop A Letter to Partners

33 34About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Compliance Operations

Compliance Management

Easpring strictly abides by laws and regulations such as The Compangy Law of the People's Republic of China the Provisional Regulations on the Supervision and Administration of

State-owned Assets of Enterprises and the Basic Standards for Enterprise Internal Control and continuously strengthens its operation management and risk prevention and

control capabilities to promote the sustainable development of Easpring.Easpring has established a comprehensive risk and compliance management committee which is responsible for overall leadership and overall coordination of compliance

management and clarifying the plans and objectives of compliance management. Under the leadership of the committee Easpring formulated the Easpring Compliance

Management Measures established a management framework covering four major systems: organizational leadership operational mechanism cultural cultivation and

assessment guarantee and effectively solved the core issues such as "who is in charge of compliance management; What to manage and how to manage compliance

management". At the same time Easpring systematically builds a "three lines of defense" risk prevention and control system with clear responsibilities clear division of labor and

orderly coordination and comprehensively improves Easpring's legal and compliant operation level through the full-chain closed-loop management of "pre-risk early warning

dynamic management and control in the process and post-audit supervision". During the reporting period Easpring successfully passed the on-site evaluation of the effectiveness

of the compliance management system organized by the State-owned Assets Supervision and Administration Commission.Easpring continues to improve the compliance operation mechanism comprehensively sorts out the business risks of 10 key business departments builds a risk database and

updates and adjusts it every year and establishes a list of job responsibilities to implement compliance employment. Easpring has set up a compliance management team and set

up full-time (part-time) compliance administrators in all functional departments and operating factories who are served by each business backbone and vertically managed by the

legal and risk control department of the headquarters so as to promote the in-depth implementation of compliance management. In addition Easpring has established a high-risk

control system of "legal construction compliance management internal control construction risk management and control accountability for violations and audit supervision"

effectively enhancing compliance enforcement giving full play to the synergy of risk prevention and control and providing a solid guarantee for Easpring's high-quality

development.Easpring has fully integrated compliance assessment into the management work of the headquarters and subordinate units evaluated their compliance performance and used

the assessment results as an important basis for employee assessment cadre appointment unit (department) evaluation and other work. At the same time Easpring incorporates

compliance management training into its annual training plan and takes members of leadership teams at all levels managers personnel in important risk positions new recruits

and overseas personnel as key personnel for compliance training so as to continuously improve the compliance awareness and ability of all employees. During the Reporting

Period Easpring's new recruits' induction compliance training and compliance training rates for key positions were 100% and the signing rate of compliance commitment letters

was 100%.

2024 New Employee Induction Compliance Training Compliance Commitment Letter Signing Ceremony

35 36About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Tax Administration

Anti-unfair Competition Easpring strictly abides by the Enterprise Income Tax Law of the People's Republic of China and other tax-related laws and regulations and is committed to tax management in

accordance with laws and regulations. Easpring implements multi-dimensional risk management and control measures to ensure tax compliance and effectively prevent potential

risks. Easpring regularly carries out tax knowledge training and publicity activities to continuously improve employees' tax professionalism and compliance awareness. Easpring

Easpring strictly abides by the Anti-Monopoly Law of the

entrusts a third-party professional organization to issue an annual tax declaration audit report and a special report on super deduction of R&D expenses every year to further

People's Republic of China the Anti-Unfair Competition

strengthen the supervision and management of corporate tax payment behavior. Easpring adheres to paying taxes in good faith in accordance with the law Easpring Easpring

Law of the People's Republic of China and other laws and Jiangsu Easpring Changzhou and Beijing Zodngoc successfully passed the government tax inspection and maintained a good record of A credit rating.regulations formulates internal systems such as the

Business Ethics Policy and the Code of Conduct for During the reporting period Easpring conducted in-depth research on overseas tax policies actively responded to and effectively controlled overseas tax risks successfully

Suppliers adheres to the principle of fair trade and ensures completed tax declaration or payment of overseas projects in Hong Kong China Luxembourg and Finland ensured the tax compliance of global business operations and provided

a solid guarantee for Easpring's international development.that no unfair competition is conducted in business

activities. During the Reporting Period there was no risk

event of unfair competition.Information Security and Privacy Protection

At the same time Easpring actively advocates and practices

the concept of healthy competition respects competitors Easpring strictly abides by relevant national and regional laws and regulations such as the Cybersecurity Law of the People's Republic of China the Personal Information Protection

follows industry norms gains market advantages by Law of the People's Republic of China and the Data Security Law of the People's Republic of China and comprehensively regulates employees' behavior during information system

enhancing its core competitiveness and wins market share operation and network information processing so as to ensure information security and compliance management. During the reporting period there was no data security incident

through legal and compliant operating methods thereby or client privacy leakage incident.promoting the healthy development of the industry as a

Easpring set up an information security committee to implement top-level decision-making and strategic coordination. At the level of operation and execution a matrix

whole and promoting a fair just and open competitive

management model is established. The information technology department of the headquarters is responsible for company-level information security management and each

environment.subsidiary implements localized information security management and control and establishes a cross-departmental emergency response collaborative process.Easpring has formulated the "Information System Emergency Plan" "Computer Network Information Management Regulations" "Trade Secret Protection Management Measures"

"Trade Secret Leakage Emergency Plan" and other systems and carried out hierarchical management and protection of information to ensure that trade secrets including client

information are effectively protected. At the same time Easpring completed network reinforcement of the data center based on the three-level standard of information security

protection and deployed and upgraded encryption systems in Easpring's two major business segments respectively.Easpring pays attention to the training and publicity of information

security and privacy protection and carries out network information and

data security training for new employees by broadcasting network security

prevention skills on LED screens in employee groups and public areas

holding network security publicity month and other activities so as to

improve employees' network security prevention skills. During the

Reporting Period Easpring organized core members of the information

technology team to participate in the network security training program

for 10000 people so as to improve the management capabilities of

Easpring's employees in data compliance management and network

security protection from overseas enterprises. During the year Easpring

conducted 180 hours of internal information security and privacy Cybersecurity Ten Thousand People Training Cybersecurity Awareness Month

protection training. Program

37 38About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Climate Action

Climate change has become a global issue related to the survival and sustainable development of human

civilization. At the critical node of the 30th anniversary of the conclusion of the United Nations Framework

Convention on Climate Change and the full implementation of the Paris Agreement the world is

accelerating the construction of a climate action community. As a responsible major country China

actively responds to climate change unswervingly fulfills its promised carbon peaking and carbon

neutrality goals and guides the construction of a fair reasonable cooperative and win-win global climate

governance system.Easpring has always taken the mission of "creating a first-class enterprise and continuously contributing to

the era of ecological civilization" systematically promoted carbon management achieved resonance and

synergy between corporate actions national strategies and global agendas and became an important

participant and contributor to global climate governance.Responses to issues in this Chapter

* Responding to climate change

This Chapter responds to SDGs

Key Performance in this Chapter

* Strive to achieve the peak of Easpring's own operational carbon emissions no later than 2030 and

strive to achieve carbon neutrality before 2050.* The total capacity of distributed photovoltaic power generation facilities in the factory 8.7 MW and the

annual power generation reaches 7807.51 MWh.* Implemented comprehensive energy conservation and consumption reduction measures reducing

carbon emissions by 4462 tCO2e in total.* Purchase of carbon credits to offset carbon emissions of 31665.12 tCO2e.* Easpring Shudao (Panzhihua) obtained the ISO14068 carbon neutral certificate became the first

"carbon neutral factory" in Panzhihua

* Easpring Changzhou obtained ISO 14064 Organization Carbon Emission Certificate and ISO14067

Product Carbon Footprint Certification

* Easpring Jiangsu obtained ISO 14064 Organization Carbon Emission Certificate and ISO14067 Product

Carbon Footprint CertificationAbout Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Climate Governance

In order to comprehensively promote Easpring's sustainable development vision and continuously and effectively identify

and manage climate-related risks and opportunities Easpring continuously deepens the construction of a sustainable Easpring’s Carbon Peaking and Carbon Neutrality Work Leadership Team

development governance structure and incorporates climate change governance into Easpring's ESG management system.Under the leadership of the board of directors Easpring has established a management system led by the Carbon Peaking

and Carbon Neutrality work leadership team with the general manager serving as the team leader responsible for Lead department: carbon & energy

management department

formulating Easpring's Carbon Peaking and Carbon Neutrality development strategy leading the Carbon Peaking and

Carbon Neutrality work direction and issuing Easpring's Carbon Peaking and Carbon Neutrality policy.Under the Carbon Peaking and Carbon Neutrality work leadership team special working groups on carbon accounting

carbon emission reduction low-carbon products and carbon assets have been set up focusing on core tasks such as the

construction of carbon emission monitoring systems the implementation of emission reduction paths product carbon

Carbon accounting Carbon emission reduction Low-carbon products Carbon assets special

footprint management and carbon asset operations. The personnel of each special working group are composed of heads special working group special working group special working group working group

of relevant departments at the headquarters and subsidiaries. Each member has profound experience and professional skills

in the Carbon Peaking and Carbon Neutrality field. He is fully responsible for the planning promotion and implementation of

dual-carbon management work and is committed to ensuring climate response-related key projects can be smoothly

advanced with efficient and high-quality standards.Easpring's carbon & energy management department is the leading department responsible for coordinating and

supporting the specific implementation of Easpring's Carbon Peaking and Carbon Neutrality work. Each subsidiary has Easpring Easpring Easpring Beijing

established a carbon management team and set up a carbon management specialist to form a management system linked Headquarters Changzhou Jiangsu Shudao(Panz R&D center carbon carbon Zodngoc up and down. Under the guidance of each special working group the carbon management team of each subsidiary is carbon carbon hihua) carbon carbon

responsible for implementing the unit's carbon accounting emission reduction target decomposition and low-carbon management management management management management management

project implementation while the carbon management specialist specifically carries out daily carbon emission data team team team team team team

collection monitoring and reporting. and other tasks to ensure that Carbon Peaking and Carbon Neutrality management

requirements are effectively penetrated into all business units achieving efficient collaboration and comprehensive

coverage of Carbon Peaking and Carbon Neutrality management. Carbon Peaking and Carbon Neutrality

Management Structure

4142

Leadership

team Special working groups

Management

teamsAbout Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Climate Strategy

Climate-related Risks and Opportunities

Facing the challenge of climate change Easpring is well aware that accurate identification of climate risks and opportunities is the key to effective response. Easpring closely follows the development trend of the industry combines its own business development

layout and characteristics and systematically sorts out and identifies various possible climate change risks and opportunities from multiple dimensions such as impact degree and occurrence probability through in-depth industry research and analysis feedback

from stakeholders and suggestions from internal and external experts. At the same time when assessing climate-related risks and opportunities Easpring takes significant uncertainties caused by extreme weather into consideration so as to comprehensively and

accurately grasp the risk situation.Physical Risk

Risk and Opportunity Potential impact

Categories Potential Financial Impact Analysis CountermeasuresTime range Value chain

* Easpring formulated the "Emergency Management Regulations" for extreme weather and

actively carried out emergency plans and drills such as typhoon and flood prevention

* Extreme weather events are increasing in frequency and severity emergency drills environmental emergency drills power outage drills etc. to enhance

which can lead to serious damage to production facilities or office employees' risk awareness and response capabilities;

equipment resulting in the loss of high-value assets;

* In the project design stage extreme weather factors such as heavy rain are taken into

Heavy rains * Seriously threatening employees' commuting safety and workplace consideration in advance to ensure that the capacity of the rainwater drainage system is

Short medium Operations safety environment increasing the risk of safety accidents resulting

Acute risk typhoons designed according to the once-in-10-year rainstorm return period;

and long term Supply chain in a significant increase in operating costs;

floods etc * The auxiliary materials required for production follow the localized procurement strategy

* Extreme weather may also prolong the supply cycle of raw establish a stable cooperative relationship with suppliers in the province and strive to build a

materials aggravate the delay of logistics and transportation and "1-hour logistics circle"

in turn may trigger the disruption of the supply chain causing a

significant chain reaction impact on corporate operations. * During the flood season a 24-hour duty system is implemented inspections are conducted at

key risk parts of the factory and flood control materials and equipment are fully reserved and

sufficient personnel are deployed.* Persistent high temperature weather may lead to limited power

supply capacity which in turn affects the normal operation of * Store backup power resources so that they can be quickly activated in the event of sudden

production equipment forces the interruption of production plans

Average power outages or insufficient power supply ensuring the continuity and normal operation of

and increases the cost burden of production operations;

temperatur Medium and production and operation;

Chronic risk Operations

es continue long term * As the temperature continues to rise employees working outdoors * Implement safety and health measures for high-temperature work including providing cooling

may experience fatigue heatstroke or physical discomfort which

to rise materials and heatstroke prevention medicines and reasonably arranging employees' working will not only reduce work efficiency but also increase the cost of

hours and rest periods to avoid injuries caused by extreme high temperatures.providing high temperature subsidies and improving the working

environment thus pushing up operating costs.

43 44About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Transition risks

Risk and Opportunity Potential impact

Categories Potential Financial Impact Analysis CountermeasuresTime range Value chain

* Easpring's exports face green barriers to trade and are easily affected

by European and American environmental policies and sustainable * Continue to pay attention to changes in policies and regulations in operating areas and product

Stringent development rules such as the EU's new circular economy action sales markets strengthen communication and collaboration with stakeholders such as the

requirements plan the new EU regulation for batteries and so on which are government and industry associations and build and improve Easpring's carbon emission

Operations

Policy of climate- Short and expected to affect Easpring's future product shipments and may lead management response system;

Marketing to overseas revenue reduction;

and Law related medium term * Establish a dual-carbon management organizational structure carry out annual organizational

and sales

policies and * Strengthened disclosure requirements for carbon emissions in carbon emissions and product carbon footprint accounting ensure accurate and timely

operating locations will require companies to invest more resources reporting of carbon emissions and formulate and continuously improve carbon emission

regulations

in monitoring and reporting carbon emissions which will increase reduction work plans.compliance costs for companies.* Actively promote in-depth assessment of the carbon footprint of core products throughout the

life cycle identify high-carbon emission links in the product life cycle explore green emission

reduction opportunities throughout the product cycle explore and implement carbon

* Under the background of a low-carbon society the demand for clean reduction strategies and increase investment in low-carbon technology research and Low-carbon

Medium and efficient technologies is gradually increasing. Accelerating the development;

technology Product R&D

Technology and long transformation of high-carbon emission processes and production * Promote the gradual transition of the granularity of emission reduction management from the

R&D and Operations

term equipment to low-carbon requires a lot of investment and time factory level to the workshop level process level and equipment level and achieve refined

investment which may lead to an increase in operating costs. management of emission reduction by digital means;

* With lean production as the core concept we will self-explore improvement opportunities to

reduce costs and increase efficiency so as to promote efficient production technology changes

simplify process procedures and achieve clean and low-carbon production operations.* Develop a green evaluation system for the supply chain screen qualified green suppliers based

on environmental assessment indicators and sustainable development indicators expand the

scope of multi-channel green supplier screening and ensure the stability and controllability of

* Most products with low-carbon attributes have green premiums. The the green supply chain;Changing Product R&D

Short and procurement of low-carbon materials such as recycled materials and * Through measures such as purchasing green electricity and self-built photovoltaic power

Market client Marketing

medium term renewable energy has limited market supply which will lead to an generation facilities Easpring will continue to increase the proportion of its own clean energy

needs and sales increase in procurement costs usage;

* Actively carry out strategic cooperation with high-quality suppliers focus on the recycling of key

raw materials cooperate to overcome technical problems and continuously improve the

recycling rate of raw materials.* Easpring continues to strengthen the carbon reduction planning and layout of its own

operations and supply chain improves the carbon management system construction projects

Climate * Easpring's progress in green and low-carbon development has and promotes the process of energy conservation and carbon reduction in light of changes in

Medium received continuous attention from various stakeholders. In the long

change and Marketing Easpring's own and external environment;

Reputation and long run if Easpring does not perform well in low-carbon performance it

sustainability and sales

term may cause damage to Easpring's reputation and affect its market

* Easpring is committed to enhancing the transparency of ESG information disclosure to promote

performance value. Easpring's sustainable development governance to a new level. At the same time Easpring

actively responds to inquiries from various stakeholders demonstrating Easpring's firm

commitment to environmental social and governance responsibilities.

45 46About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Opportunity

Risk and Opportunity Potential impact

Categories Potential Financial Impact Analysis CountermeasuresTime range Value chain

* With the advancement of low-carbon economic transformation the * Easpring actively seizes the opportunity of climate change accelerates the layout of new

Low-carbon Short social demand for green and low-carbon products and services may energy emerging markets continuously strengthens its innovative R&D capabilities and at the

Products Marketing usher in growth. If Easpring can further develop and provide low-

products and medium and same time deepens its own carbon management and clean production capabilities to provide

& Services and sales carbon products services and solutions it will be able to more

services long term clients with products and services that are more in line with market demand and are more effectively adapt to market demand thereby Win additional growth

environmentally friendly.opportunities.* With the implementation of my country's "dual carbon" policy

Incentive and emerging industries such as new energy have ushered in dual * Easpring is committed to building a comprehensive green factory management system.Short opportunities for policy and market development. Enterprises are Relying on the power of scientific and technological innovation combined with refined

support of

Market medium and Operations encouraged to take energy conservation and emission reduction management Easpring actively promotes the implementation of a series of important

national

long term measures and actively participate in the application of provincial or measures such as intelligent energy management and control efficient resource recycling

policies national green factory demonstration projects thereby Have the improvement of energy efficiency and wide application of clean energy.opportunity to receive state subsidies or related cost support.Note: Easpring defines the time frame of climate change-related risks and opportunities as short-term (i.e. within 1 year after the end of the sustainable information reporting period) medium-term (i.e. 1 year to 5 years after the end of the sustainable information reporting period) and long-term (i.e. more than 5 years after the end of the

sustainable information reporting period) to assess the impact and changing trend of climate risks and opportunities within different time frames so as to plan and implement corresponding response strategies and measures.Climate-related Transition

Systematic carbon management Precise carbon reduction

Plans * Build a carbon management system covering Easpring's headquarters * Focusing on internal carbon reduction we will gradually reduce the carbon

subsidiaries focusing on carbon emission data management and build a carbon emissions of our own operations at the factory level through technological

management system in line with Easpring's production and operation transformation energy efficiency improvement and green electricity substitution

According to the four-step model of "systematic carbon characteristics and explore carbon offsets to initially achieve carbon neutrality in our own

management scientific carbon accounting precise carbon * In the process of building a carbon management system combined with operations

Easpring's development plan support the construction of Easpring's carbon-

reduction and digital carbon control" Easpring has gradually * Simultaneously carry out external supply chain emission reduction management neutral factory and improve the applicability of the management system and continuously reduce the carbon footprint of the supply chain

built a comprehensive and efficient carbon management

system by improving the carbon management system Scientific carbon accounting Digital carbon control

accurately calculating carbon emissions by scientific means

* Supported by the carbon management system carry out carbon data verification * Undertake Easpring's digitalization process integrate big data analysis technology

formulating and implementing precise carbon reduction

through a top-down approach set Easpring's scientific carbon targets and and realize digital and intelligent management and control of all carbon emissions

strategies and effectively controlling carbon emissions with gradually realize the standardization and standardization of carbon emission data * Manage the carbon footprint digitally form a virtuous circle of sustainable

the help of digital tools so as to lay a solid foundation for management development in the upstream and downstream of the industrial chain and lay the

achieving Easpring's carbon emission reduction targets and * Take factories as pilot projects for carbon emission data management and foundation for achieving carbon neutrality in the entire industrial chain

promoting sustainable development. gradually promote the experience of factory carbon emission management

47 48About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Climate Risk Management

In order to effectively manage climate risks Easpring seizes the green and low-carbon transition opportunities brought

about by climate change comprehensively considers its own operational characteristics actively collects multi- Key Actions for Carbon Emission Reduction

dimensional information such as feedback from stakeholders internal and external environment and expert opinions

integrates climate risk management with company operations. The "Easpring Carbon Emission Reduction Work Plan"

Easpring implements carbon footprint tracking and accounting throughout the life cycle of key products and makes

has been formulated and Easpring's quantitative carbon emission reduction indicators in the near and medium and

every effort to move towards the goal of carbon neutrality by carrying out carbon emission verification optimizing the

long term have been preliminarily determined. At the same time Easpring has established and improved a carbon

energy structure carrying out energy-saving technological transformation projects and building a "carbon neutral

management response mechanism with efficient collaboration and close communication and continuously optimized

factory".the climate risk control mechanism and management efficiency to enhance the resilience to climate risks.Carbon Emission Verification Management

During the reporting period Easpring continues to optimize the working mechanism of carbon management compiles

and improves the carbon emission accounting guidance manual at the organizational level and product level laying a

Identifying Climate Risks solid foundation for accurate and efficient one-stop carbon emission accounting of data monitoring-collection-

* Risk points are screened according to accounting-reporting.macro policies industry policies During the reporting period based on the standardized carbon inventory workflow and professional carbon footprint

concerns of various stakeholders and model database Easpring completed the greenhouse gas emission inventory of Easpring Changzhou and Easpring

regulatory requirements. Jiangsu at the organizational level and carried out product-level carbon footprint verification for typical products of

ternary category and invited a third-party professional organization to verify the data and obtained ISO 14064

Analysis and Evaluation organizational carbon emission certificate and ISO 14067 product carbon footprint certificate.* Based on the possibility and impact degree

Carbon emission verification at Product-level carbon

of climate-related risks we identified the organization level footprint verification

climate-related physical and transformation

risks that have a substantial impact on

Easpring's business development.Risk Response

* In view of the assessed climate-related

risks Easpring formulated climate risk

response plans based on factors such

as risks and benefits brand reputation

and social responsibility to ensure the Supervision and Improvement

stable development of Easpring.* Easpring continuously tracks monitors and

manages the progress of handling climate-

related risks and at the same time ISO 14064-1: 2018 Organization Carbon ISO 14067: 2018 Product Carbon

continuously optimizes the risk control Emission Certificate Footprint Certificate

mechanism and management efficiency in

daily operations to enhance the

49 50About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Optimizing Energy Structure Green Supply Chain Emission Reduction

Optimizing the energy structure is one of the important ways to Easpring continues to improve the green procurement system adopts the proximity procurement strategy actively purchases low-carbon and environmentally friendly products

achieve green and low-carbon development. Easpring has deepens cooperation with core raw material suppliers in the field of carbon management and works with suppliers to build a green supply chain.increased its investment in clean technology and regards

During the reporting period Easpring carried out close collaboration in renewable energy power carbon data integration accurate accounting of carbon emissions research and

renewable energy substitution as the core path of energy

development and application of advanced technologies for carbon emission reduction and coordinated response to external policies so as to promote the sharing and efficient

structure optimization. Through the "distributed photovoltaic +

application of key carbon management indicators in the supply chain. Easpring continues to explore and establish and improve the green evaluation mechanism of Easpring's

energy storage" collaborative model Build an integrated source

supply chain gradually incorporates supplier carbon performance indicators into the scope of daily procurement management strengthens the low-carbon sustainable

grid load and storage system to systematically promote the

development capabilities of the supply chain and promotes the green transformation of the entire industry chain.transformation of clean energy. During the reporting period

Easpring had factory distributed photovoltaic power generation

facilities with a total capacity of 8.7 MW and the annual power Procurement of low-carbon and Establishment of a green evaluation

environmentally friendly products Implementation of localized procurement

generation reached 7807.51 MWh equivalent to achieving an mechanism for suppliers

emission reduction of 4602.92 tCO2e. * Procurement of energy-saving lamps new * Incorporate key carbon management indicators * For production auxiliary materials such as

energy forklifts and other environmentally such as renewable energy use into the supplier workshop auxiliary liquid oxygen special gas

Total photovoltaic generation (MWh) friendly products evaluation system for testing room and low value consumables

* required by the plant priority is given to Promote the procurement of recycled * Provide carbon reduction communication and

adopting the strategy of nearby procurement to

2023年 1393.97MWh materials packaging cartons produced by the training and promote communication and

reduce transportation carbon emissions

+460% recycling of waste paper collaboration with upstream and downstream

partners on carbon management.

2024年 7807.51MWh

Green procurement initiativesEquivalent to a reduction of 4602.92 tCO2e Building a “Carbon Neutral Factory"Building a "carbon-neutral factory" as the core strategy to

achieve the dual carbon goal Easpring made full use of the

Energy Saving and Consumption Reduction abundant clean energy in Panzhihua Sichuan and laid out

Management and built the Easpring Shudao factory which significantly reduced electricity-related carbon emissions. Easpring

Shudao Factory implements the low-carbon concept from

Easpring adjusted its annual energy conservation and

construction to operation applies high-energy-efficiency

consumption reduction plan carried out in-depth

equipment and low-emission refrigerants in the construction

comprehensive actions to conserve oil electricity water and

stage and uses technologies such as waste heat recovery and

other resources implemented targeted energy conservation and

utilization in the operation stage to further reduce energy

emission reduction work reduced resource consumption in an

consumption. At the same time the factory makes every effort

all-round way and improved resource utilization efficiency.to promote the realization of the goal of carbon neutrality ISO 14068 Carbon

During the reporting period Easpring achieved a cumulative VCS Carbon Credit Certificate

through the application of carbon reduction technology and Neutrality Certificate

carbon reduction of 4462 tCO2e through projects such as

the purchase of carbon offset credits.intelligent lighting energy-saving in the factory area replacing

shuttle buses with electric shuttle buses spray drying waste heat

recovery and utilization air compressor energy efficiency linkage During the reporting period Easpring Shudao (Panzhihua) offsets greenhouse gas emissions of 31665.12 tCO2e by purchasing carbon credits passed the strict verification of an

energy-saving renovation projects and circulating water pump internationally recognized third-party verification agency and obtained the agency's first ISO14068-1 carbon neutrality declaration verification certificate in the lithium battery

motor permanent magnet energy-saving renovation projects. cathode material industry becoming the first "carbon neutral factory" in Panzhihua.

51 52About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Metrics and Targets

During the reporting period Easpring referred to the principle of Science-based Target Initiative (SBTi) and focused on the implementation of emission reduction paths simulated different emission reduction scenarios to design different emission reduction paths set

Easpring's overall carbon management goals and transformed Easpring's overall carbon emission reduction goals into carbon emission reduction sub-goals of each subsidiary branch.Carbon emission management objectives Metrics Units 2024

Strive to achieve the peak of Easpring's own operational carbon emissions no later Greenhouse gas emissions tCO2e 28040.62

than 2030 and strive to achieve carbon neutrality before 2050. (Scope 1)

Greenhouse gas emissions tCO2e 260675.84

(Scope 2)

Greenhouse gas

emissions

tCO e

Total greenhouse gas emissions 2 288716.46

Easpring has gradually established a scientific reasonable and feasible dual-carbon management indicator system

anchoring Easpring's continuous transformation to low-carbon and carbon neutrality and promoting Easpring to

achieve economic benefits while contributing strength to global green and low-carbon development. Greenhouse gas emission tCO e /RMB million 38.02

intensity 2

53 54About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Quality Innovation and

Development

Innovation is the core driving force for enterprise development and high-quality products are the

fundamental embodiment of enterprise competitiveness. Easpring has always adhered to the

development concept of "technology-led and innovation-driven". Through efficient and systematic

operation management and cutting-edge intelligent manufacturing technology Easpring continuously

improves product R&D and production efficiency ensures excellent and stable product quality and

provides clients with continuous value-added solutions.Responses to issues in this chapter

* Innovation-driven * Digital construction

* Product quality and safety * Chemicals management

* Intellectual property management * Ethics of science and technology

The Chapter responds to SDGs

Key Performance in this Chapter

* R&D investment RMB 370 million accounting for 4.88% of revenue

* 430 scientifc R&D personnel accounting for 23.92% of the employees

* Obtained a total of 352 domestic and foreign authorized patents and 45 authorized software copyrights

* 2 Specialized and Sophisticated Enterprises

* 100% obtained ISO 9001 quality management system certification

* 1 laboratory certified by CNASAbout Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Innovation-driven

Science and technology innovation is the core competitiveness. In the process of rapid internationalization development Easpring has continuously proposed "Easpring solutions" through continuous technological innovation and management innovation providing

a strong impetus for Easpring's high-quality coordinated and green development. At the same time Easpring attaches great importance to the protection of intellectual property rights establishes a sound intellectual property management system providing solid

policies guarantee for innovation achievements and ensures the sustainability of innovation-driven business development.Innovation and Development

Easpring strictly abides by the requirements of national and local policies and regulations such as the Law of the People's Republic of China on Science and Technology Progress continues to increase investment in R&D accelerates technology iteration and talent

training integrates green processes and low-carbon technologies into the whole life cycle of products. In addition Easpring cooperates with universities and scientific research institutions to build industry-university-research platforms injecting strong impetus into

industrial transformation and upgrading and national self-reliance in science and technology.Easpring follows the principles of scientific and technological ethics and bears in mind of enhancing human well-being respecting the right to life adhering to fairness and justice. Easpring reasonably controls risks and maintains openness and transparency and

abides by the national constitution laws regulations and relevant provisions. Easpring's business does not involve scientific research and technology development in sensitive ethical fields such as artificial intelligence and life sciences.Product Development Strategy

As the world's leading company in lithium battery cathode materials Easpring strives to create

a "source" of original technology. Focusing on the R&D strategy of "new material products new

technology systems and new battery routes" Easpring has formulated a product development

technology (2023-2028) plan and clarified product R&D and development key indicators and

roadmaps. At the same time Easpring has established a clustered R&D innovation platform

integrating lithium-ion battery material technology research product development

engineering design testing and evaluation and technical services and continues to lead the

technological progress of the industry. During the reporting period Easpring's total R&D

investment was RMB 370 million accounting for 4.88% of revenue.After years of continuous high-intensity R&D investment and technology accumulation

Easpring has won 38 national provincial and ministerial honors such as "National Recognized

Enterprise Technology Center" "National Technology Innovation Demonstration Enterprise"

and "National Intellectual Property Demonstration Enterprise". Easpring has obtained 52

product and technology awards including China Patent Excellence Award Beijing Invention

Patent Award Beijing Science and Technology Award and China Nonferrous Metals Industry Specialized and Sophisticated SMEs Jiangsu Engineering Research

Science and Technology Award. Among them two enterprises Easpring Changzhou and Beijing Beijing High-tech Enterprise Jiangsu Gazelle Enterprisein Beijing Center

Zodngoc were recognized as "specialized and sophisticated " enterprises.During the reporting period subsidiaries such as Easpring Changzhou Easpring Jiangsu and

Beijing Zodngoc were awarded national provincial and ministerial honors and qualifications

such as " Specialized and Sophisticated Small and Medium-sized Enterprises (SMEs) in Beijing"

"Beijing High-tech Enterprise" "Jiangsu Province Recognized Enterprise Technology Center"

"Jiangsu Engineering Research Center" and "Jiangsu Gazelle Enterprise".

57 58About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Product R&D Management

Easpring continues to improve the R&D management system. Easpring has been improving a technological innovation Easpring continues to lead the technological progress of the global high-performance battery key materials industry

system covering all business areas all processes and vertically integrated has established the New Energy Materials and successfully develops a number of key technologies such as multi-element spherical precursor co-precipitation

Research Institute the Research Institute of Lithium-ion Battery Material and the Engineering & Technology Research technology uniform lithiation and crystallization technology of cathode materials multi-element synergistic doping

Institute of Lithium-ion Battery Material. In addition Easpring has formulated the "Project Management Regulations" modification technology and multi-level collaborative modification technology of micro-powder particle surface so as

"Product Design Process Control Procedures" and other institutional documents to clarify the main matters and to strengthen Easpring's industry position and leading advantage in the field of lithium battery cathode materials.processes of R&D management. So far Easpring has formed six product series: multi-component materials lithium

iron phosphate (manganese) lithium cobalt oxide lithium-rich manganese-based key materials for solid-state lithium

batteries and cathode materials for sodium-ion batteries."Molten Lithiation-Single Crystallization" Model

New Energy Responsible for carrying out basic theoretical research on new energy materials while

Materials Easpring took the lead in proposing the "molten lithiation-single crystallization" model to promote the

Research aiming at the advanced science and technology and carrying out forward-looking development of new technologies for multi-element gradient doping surface modification and capacity

Institute research on strategic new materials. improvement. Easpring used the method of in situ construction of fast-ion conductor layer effectively solve the

problem between solid-solid interface the electrolyte.Research Responsible for carrying out product research and development applied research and

Institute of

Lithium-ion organizing and implementing the transformation of scientific and technological

Battery Material achievements. Nanoscale Solid-State Electrolyte Development

Engineering &

Technology Through special component design to regulate lithium-ion channels multi-element targeted modification to Responsible for lithium battery material production process research equipment

Research stabilize the crystal structure Easpring has designed a unique full-process nano-integrated process and

Institute of technology development carbon management and intelligent manufacturing successfully developed a nano-scale solid electrolyte with high ionic conductivity and high stability.Lithium-ion development.Battery Material

Organizational structure and functions of the Institute During the reporting period Easpring's blended high-pressure compacted NCM811 layered single-crystal nickel-cobalt-

Easpring actively promotes the construction of technology platforms continues to build and improve R&D manganese products single-crystal high-voltage NCM56SC medium-nickel multi-component cathode materials and

infrastructure matches advanced digital systems and provides a solid hardware foundation for efficient R&D work. As single-crystal high-capacity and low-cost ternary cathode materials won the Changzhou City Innovation product.of the end of the reporting period Easpring has equipped more than 2000 sets of cutting-edge scientific research

equipment providing strong support for the exploration of advanced technologies and ensuring that the R&D team can

carry out its work more efficiently and achieve innovative breakthroughs.At the same time Easpring continues to promote the construction of digital systems such as Laboratory Information

Management System Platform (LIMS) and Product Lifecycle Management System (PLM). In this way Easpring has

successfully optimized laboratory resource allocation and experimental processes strengthened laboratory quality

management and risk control capabilities and promoted collaboration and knowledge sharing within the R&D team

comprehensively improving project R&D efficiency.Changzhou Innovative Product Certificate

59 60About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Green Design Products R&D Team

Easpring complies with the "General Principles for Green Product Easpring strives to build Easpring's strategic talent force improve the whole chain training mechanism

Evaluation" and other relevant national and industry regulations and of scientific and technological talents and provide lasting impetus for Easpring's continuous

standards and is committed to creating products with low resource and innovation and development. Easpring now has a R&D team led by high-level talents such as national

energy consumption low pollutant emissions low toxicity and less harm "hundreds and millions" talents and has developed a R&D team with strong innovation capabilities

easy recycling and reuse healthy safe and high quality. Easpring rich engineering experience and business acumen. As of the end of the reporting period Easpring had

continuously optimizes product design and production processes to a total of 430 scientific research and technical personnel including 29 doctors and 158 masters.provide society with more environmentally friendly and efficient lithium Scientific research and technical personnel accounted for 23.92% of Easpring's employees.battery cathode materials.Easpring takes multiple measures to promote talent training regularly provides capability

improvement training opportunities for the R&D team through "expert lecture hall + organizational

Lithium-rich manganese-based materials with low cobalt experience extraction + co-creation workshop" broadens the professional knowledge horizon of the

content R&D team and improves business capabilities and continuously stimulates the endogenous

motivation of employees to grow.Cobalt is a scarce and environmentally sensitive resource that is

widely used in lithium battery cathode materials. However the high During the reporting period Easpring organized the "R&D Backbone Capability Improvement Training

content of cobalt not only increases material costs but also poses Camp" specially invited authoritative experts in the field of materials science of the Chinese Academy

potential harm to the environment. Easpring has developed of Sciences to carry out special training. This training continuously improved the team's

innovative technologies that reduce cobalt content while comprehensive technical research and innovative practice capabilities through systematic learning

maintaining the performance of cathode materials. By optimizing the and interactive communication. R&D Backbone Capability Improvement Training Camp

precursor structure design combining lattice doping surface-

interface synergistic modification and extreme sintering process Easpring continues to optimize the incentive mechanism to stimulate the innovation vitality of R&D personnel implement the assessment and incentive mechanism for new

Easpring has successfully solved the low energy density of low-cobalt product development. Easpring also explores various short-term and long-term incentive forms such as incentives for scientific and technological achievements and technology

cathode materials. and industry problems of poor cycle performance dividends and use diversified incentive measures to stimulate employees to boldly innovate and deeply study key technologies. At the same time Easpring has set up awards such

simultaneously reducing the potential impact of cobalt on the as "Science and Technology Progress Award" "Technology Innovation Award" and "Engineering Design Award" in the annual evaluation to commend teams and individuals with

environment and reducing dependence on scarce metal resources. outstanding performance in R&D innovation play their demonstration and leading role and promote Easpring's overall scientific and technological innovation level. During the

reporting period 10 projects of Easpring were awarded the Science and Technology Innovation Award and 14 people were awarded the "Patent Star" award.Large capacity high-efficiency production process Scientific Research Cooperation

Under the guidance of the green design concept Easpring has Relying on its strong innovation capabilities and technological leadership in the battery materials industry Easpring actively participates in the preparation of industry standards

achieved an increase in unit production line by more than 30% by promotes school-enterprise cooperation participates in government project applications and accelerates the application of scientific and technological achievements through

optimizing product processes increasing the size of bottleneck the deep integration of industry academia and research.process equipment units and introducing thickeners and other

equipment into capacity bottleneck processes. At the same time by

optimizing the washing process Easpring improved product

crystallinity reduced impurity content significantly improved

product quality and production efficiency achieved a reduction in

product washing water consumption by about 20% and effectively

reduced the use of water resources.In the future Easpring will continue to deepen product design and process

innovation explore more environmentally friendly and efficient production

methods and contribute to the sustainable development of the lithium

battery cathode material industry.

61 62About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Standard Preparation School-enterprise Cooperation

Easpring takes promoting the development of industry standardization as its own responsibility actively participates in Easpring attaches great importance to industry-university-research cooperation and has established in-depth

the preparation of international and industry standards and continues to transform innovative achievements into cooperative relationships with well-known universities and scientific research institutions at home and abroad such as

standards. As of the end of the reporting period Easpring has taken the lead or participated in the formulation of 59 Peking University Tsinghua University and University of Limpopo in South Africa. Through these cooperation with

standards for related products test methods green products etc. and is taking the lead in drafting key product universities Easpring carry out scientific and technological research jointly with universities to overcome technical

standards such as the national standard "Lithium Iron Manganese Phosphate" (Plan No. 20240002-T-610). It is also problems and promote the transformation and implementation of scientific research results.constantly improving relevant standards such as sodium-ion battery cathode materials and solid electrolytes and

Easpring explores diversified cooperation models with universities builds a series of innovation platforms through in-

continues to promote the technological development of the industry.depth collaboration and establishes a joint laboratory for high-energy lithium battery materials a studio for enterprise

visiting engineers and a mobile station for teachers and enterprise practice etc. so as to educate people through multi-

Number Standard Name Type Standard Number/Plan party collaboration and co-construction and sharing of resources. During the reporting period Easpring established a

Number long-term school-enterprise cooperative relationship with Xuzhou Vocational College of Industrial Technology

integrating production and education and jointly built a "Teacher Enterprise Practice Mobile Station" and a "Enterprise

1 Measurement of Compaction Density of Lithium Ion National Standard GB/T44330-2024 Visiting Engineer Workstation" to cultivate high-quality skilled talents for the industry and promote technological

Battery Cathode Material Powder

innovation and industrial upgrading.

2 Lithium - Rich Lithium Iron Manganese National Standard 20230125-T-610

3 Determination of Moisture Content of Lithium-ion National Standard 20230123-T-610

Battery Cathode Materials by Karl Fischer Coulomb

Method

4 Lithium Manganate Industry Standard 2023-0257T-YS

5 Lithium Nickel Cobalt Manganate Industry Standard YS/T798-2012

6 Battery Grade Sodium Carbonate Group Standard 2023-032-T/CNIA

During the reporting period Easpring took the

lead and participated in the compilation of 3

national standards 2 industry standards and 1

team standard. At the same time the industry

Easpring jiangsu and Xuzhou Vocational College of Teachers and Students of Nanjing University of

standard "Lithium Nickel Cobalt Manganate" led

Industrial Technology jointly Build a School-enterprise Aeronautics and Astronautics Visited Easpring

by Easpring was awarded the second prize of the

Cooperation Relationship Changzhou

"Technical Standards Excellence Award" by the

National Nonferrous Metals Standardization Scientific Research Project Declaration

Technical Committee and the national standard

"Lithium-Rich Lithium Ferrite" that it Relying on Easpring's solid scientific research foundation and innovation strength it has applied for and undertaken

participated in drafting was awarded the scientific research projects such as the development of key materials for solid-state lithium-ion batteries and the

"Technical Standards Excellence Award" Third Excellent Award for Technical Standards of Lithium-rich Lithium development of ultra-high nickel cathode materials by relevant national and local government departments achieving

prize. Chen Yanbin the Chairman of Easpring Ferrite/Lithium Nickel Cobalt Manganate high-level scientific and technological self-reliance for my country's new energy industry. Self-improvement has

was appointed as Deputy Chairman of the contributed an important force.Powder Metallurgy Sub-Standards Committee.During the reporting period Easpring applied for and participated in more than 40 government scientific research

projects continuously consolidating and enhancing Easpring's core competitiveness in the industry.In the future Easpring will rely on its own technological advantages to continue to participate in the formulation and

revision of relevant standards and contribute to the high-quality development of the industry.

63 64About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Intellectual Property Management

Easpring complies with national laws and regulations such as the Patent

Law of the People's Republic of China as well as international treaties such

as the Patent Cooperation Treaty (PCT) and takes intellectual property Strengthening Establishing a patent Intellectual property Optimizing trademark Legal risk prevention

patent layout database cooperation registration and control

rights as an important starting point for developing new productivity and

promoting innovation-driven development and high-quality development.Easpring integrates patent Through patent search and Easpring carries out technical Easpring continues to Easpring's intellectual

layout throughout the entire analysis Easpring establishes cooperation with partners increase the categories of property department R&D

R&D process conducts a patent database covering through patent licensing trademark registration center legal affairs and other

hierarchical management of Easpring's main business pricing investment and other expand the scope of departments collaborate to

patent applications based on provides timely information methods to promote the trademark protection and study and judge product

innovation economic benefits on technological transformation of scientific further ensure the all-round technical details and legal

and other dimensions and development trends and and technological layout and standardized use provisions and safeguard

submits domestic and foreign market trend for Easpring's achievements and expand the of Easpring's trademarks. legal rights according to law.patent applications in a timely decision-making and project value of intellectual property

manner to continuously development and avoids the rights.Company’s Patent Certificate (Partial) improve patent layout risk of infringement of other

management. people's intellectual property

Easpring adopts the management mode of "group management and

rights caused by information

control modular operation and professional development". The intellectual

mismatch.property department of the headquarters is responsible for overall

management of the intellectual property work of each subsidiary company

and research institute and each subsidiary company and research institute

implements a unified standardized patent mining patent application and

review system to realize dynamic compliance management of patent layout Main Measures for Intellectual Property Protection

trademark registration and trade secret protection.Easpring continues to build a global intellectual property protection network by obtaining patent authorizations in key markets. With forward-looking planning and layout

Easpring has formulated internal systems such as the "Intellectual Property Easpring has authorized core patents in the five major markets of China the United States Japan Europe and South Korea with a total of 60 PCT patent applications and a total of

Management Regulations" to continuously standardize the intellectual 38 authorized overseas patents. During the reporting period Easpring has obtained 30 newly authorized overseas patents.property management process take multiple measures to strictly control

the risk of intellectual property infringement improve the patent incentive

As of the end of the reporting period Easpring's patent

mechanism and effectively safeguard its own competitive advantages. In A lithium-rich manganese-based material and its preparation method and application (European applications have been effectively covered with six

addition Easpring has formulated and implemented relevant management Patent Bulletin No. EP4047688B1) have obtained patent authorization from Europe China the United product series and intelligent equipment: lithium

systems such as the Administrative Measures for the Protection of Trade States Japan and South Korea at the same time

nickel cobalt manganese (aluminate) lithium iron

Secrets clearly listing product development product formulas raw

phosphate lithium iron manganese phosphate key

materials production processes production methods and other Easpring was approved the European patent "A lithium-rich manganese-based

materials for solid-state lithium batteries lithium

information as the scope of Easpring's trade secrets and conducting material and its preparation method and application" (European patent

cobalt oxide and cathode materials for sodium-ion

hierarchical management and protection to comprehensively standardize announcement number: EP4047688B1) disclosing a lithium-rich manganese-

batteries. A total of 834 domestic and foreign patent

and strengthen Easpring's intellectual property protection. During the based material with excellent cycle performance high discharge specific capacity

applications have been submitted 352 domestic and

reporting period Easpring conducted a series of intellectual property and good rate performance. Lithium-rich manganese-based materials have

foreign authorized patents have been obtained and 45

trainings covering 260 person-times. simultaneously obtained patent authorization from China the United States

software copyrights have been authorized. During the

Japan and South Korea.Easpring comprehensively protects Easpring's innovative achievements reporting period Easpring applied for 193 new

from multiple dimensions such as patents trademarks and trade secrets domestic and foreign patents and added 72 new

and continuously improves its intellectual property creation protection domestic and foreign authorized patents.application and management capabilities.European Patent Certificate

65 66About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Intelligent

Manufacturing

Digital Transformation Implementation Path:

Easpring actively embraces digital transformation introduces digital

technology comprehensively promotes the construction of intelligent

Easpring implements digital transformation through the following three phases to realize the construction of smart factories:

manufacturing systems realizes digital management of the whole process

from R&D to production and improves resource utilization efficiency and

flexible production capacity. At the same time Easpring deeply practices the

concept of lean management focuses on refined management and control Implementation Phase Main Tasks Implementation

and continuous optimization and greatly improves production efficiency Progress

and product quality through the construction of smart factories to ensure

that every link meets excellent standards.* Continuously optimizing various infrastructures.Phase I * Upgrading production line equipment and industrial control system. Completed

Digital Factory Strategy * Promoting information security management system certification.Easpring systematically promotes digital construction and formulates top- * Optimizing PLM MES SRM CRM SAP and other systems continuously and enriching business scenarios

level digital transformation planning such as " Digital Transformation such as "integration of research production supply and marketing" and "integration of business and

Strategic Plan" focusing on the four major features of smart factories: finance".Phase II In progress

comprehensive perception collaborative sharing analysis and optimization * Polishing and promoting the mature production management system.prediction and early warning. By deeply integrating the new generation of IT

* Carrying out data base and data governance construction.technology with advanced manufacturing technology Easpring realizes

digitalization throughout all aspects of production management service

etc. and creates a smart factory with intelligence information automation

* Comprehensive digital empowerment of enterprise management and strategic decision-making.and digitalization.Phase III * Establish a risk management system based on big data platform and AI. To be implemented

In accordance with the design concept of "business-oriented data-centric

* Build digital twin that meet national smart factory standards and realize digital lighthouse factories.integrated and integrated" Easpring builds an interconnected digital

platform to realize data integration and sharing and provides accurate

decision-making support for intelligent manufacturing with the help of real-

time production data analysis helping scientific decision-making. At the

same time Easpring relies on advanced technologies such as cloud

computing big data and AI to further promote the construction of smart

factories improve the level of production intelligence and realize the During the reporting period based on the SAP system Easpring integrated multiple digital systems such as MES/WMS/DCS to break the isolated information between finance

refinement and efficiency of production management. manufacture supply chain and other departments which realized the real-time sharing of various data and seamless connection of business processes. Through integrating

various systems Easpring improved management efficiency based on the timely and accurate data analysis.

67 68About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Construction of Smart Factory

Easpring deeply integrated cutting-edge technologies such as machine Easpring has introduced intelligent equipment such as submersible lift automatic guided During the reporting period Easpring Jiangsu was awarded the "Jiangsu

vision inspection digital twin simulation 5G + and cloud computing with vehicles (AGV) and promoted the integration of the WMS the sagger automatic detection and Province Intelligent Manufacturing Demonstration Workshop" and Easpring

advanced manufacturing. In addition Easpring continues to construct and cleaning conveyor line and the automatic stacking conveyor line. Though this way Easpring Changzhou was Integration of Informatization and Informatization

integrate DCS BATCH MES PLM WMS WCS and other digital systems to has realized automatic detection and cleaning conveyor of sagger in-factory logistics Management System Assessment Certificate AAA.achieve agile production collaboration and refined production operation and automatic packaging which improves the energy efficiency of production

management. area management and material transportation efficiency.At the same time Easpring developed automatic picking and delivery robots and safety

inspection robots based on 5G private network. It helps realize functions such as personnel

identification standardized material stacking environmental monitoring and equipment

and instrument data collection which improves the efficiency of sample delivery and

workshop safety and environmental inspection significantly improve Easpring’s

production efficiency. Utilizing such equipment Easpring build a benchmark manufacturing

base that is safe environmentally friendly green efficient and intelligent.Easpring Changzhou Integration of Informatization and Informatization

Submersible Lift AGV Trolley Sample Delivery Robot and Inspection Robot Based on 5G Private Network Management System Assessment Certificate AAA Certification

Industry Partner Cooperation

In the journey of digital transformation Easpring has carried out in-depth

cooperation with industry leading companies to further improve the level of

digital R&D and manufacturing. During the reporting period Easpring SDIG

Panzhihua and Siemens signed a memorandum of cooperation on the

construction of a "lighthouse factory". Relying on Siemens' advanced

technology and rich experience in the digital field Easpring SDIG Panzhihua

systematically built a closed-loop management system for R&D and

manufacturing processes promoting enterprises to lead the industry

forward.Signing Ceremony of Memorandum of Cooperation on the Construction of "Lighthouse Factory"

69 70About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Product Quality and Safety Process Quality Control

Process quality control plays a key role in the quality management system. Easpring adopts the cycle management

method of PLAN DO CHECK and ACT (PDCA) to ensure the effective implementation and continuous optimization of

quality management measures. Easpring has formulated procedural documents such as Supplier Management Control

Easpring always regards product quality and safety as the cornerstone of enterprise development. With the central Procedure Product Monitoring and Measurement Control Procedure and Non-conforming Product Control Procedure

strategy of "comprehensively building and implementing ISO9001 & IATF16949 quality management" Easpring which specify the quality control processes and standards of key links such as raw material procurement warehousing

continuously improves product performance and reliability through R&D standard management lean operation and inspection incoming quality control product quality specification non-conforming product management shipment

inspection and packaging requirements. Easpring ensures each process is strictly controlled and provide clients with

intelligent manufacturing. In addition Easpring continuously optimizes the quality management system builds a

safe reliable and high-quality products. During the reporting period Easpring did not have any recall incidents due to

quality culture for all employees and provides clients with the most trustworthy high-quality products.health and safety issues in the total number of shipped or shipped products nor did it have any product recall incidents.Easpring has established a quality performance appraisal mechanism covering relevant departments such as R&D

Quality Management System process production supply chain and operation formulated scientific and systematic quality management objectives

and set relevant performance weights. Easpring tracks and evaluates the achievement of quality objectives of each

production base every month identifies potential problems in time and takes targeted measures to ensure the

Easpring strictly abides by the Product Quality Law of the People's Republic of China and relevant laws and regulations continuous achievement of quality objectives. During the reporting period Easpring fully achieved various quality

and constantly improves the quality management system. The product management system covers all aspects such as management objectives and no major product safety and quality accidents related to products and services occurred.raw material procurement production control process change product testing warehousing and logistics and after-

sales service by which Easpring can control product quality in all-round.Quality System Certification

Guided by the international standards ISO9001 and IATF16949 Easpring continues to establish and improve Easpring's

quality management system in combination with Easpring's development strategy and operation and management.The system covers all aspects such as raw material procurement design and development production control product

testing warehousing and logistics and after-sales service helping Easpring realize the full life cycle management of

product quality.In order to ensure the effectiveness of the quality management system Easpring regularly organizes internal audits in The qualified rate of The timely delivery

all aspects of the product life cycle every year. At the same time Easpring actively invites external third-party The main the finished product rate of mass- client complaint

certification bodies to carry out quality management-related audit and certification every year. As of the end of the responsible quality submitted for produced products handling rate 100%

reporting period Easpring's all cathode material production bases have passed ISO 9001 quality management system accident is 0 inspection at one is 100%

certification. The Easpring Changzhou and Easpring Jiangsu have obtained IATF16949 automotive quality management time ≥ 99. 5%

system certification. Easpring SDIG Panzhihua plans to pass IATF16949 automotive quality management system

certification in 2025. Product quality management objectives

At the same time Easpring attaches great importance to the construction of product

testing capabilities establishes high-standard laboratories equipped with first-class

professional testing and analysis equipment and complies with IS0/IEC17025: 2017

"General Requirements for Testing and Calibration Laboratory Capabilities" (CNAS-

CLO1 "Testing and Calibration Laboratory Capabilities Accreditation Guidelines").During the reporting period Easpring Jiangsu laboratory passed CNAS (China

National Accreditation Service for Conformity Assessment) certification which

provided stronger support for Easpring's product quality control.IATF16949 Automotive Quality Management

ISO 9001 Quality System Certification CNAS Certification Certificate

System Certification

71 72About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Quality Culture Construction and Capacity Improvement Management of Hazardous Substances

Easpring attaches great importance to quality management training and has established and continuously improved a

comprehensive quality training system covering Easpring level factory level and department level. Through a Easpring strictly complies with the requirements of the EU Battery Law RoHS Directive REACH regulations halogen-

combination of online and offline methods Easpring carries out quality training for all employees to continuously free standards and automobile banned substance requirements (GB/T30512-2014). Easpring formulates and

improve employees' awareness and attention to product quality and safety; It also continuously carried out quality implements the Regulations on the Management of Hazardous Substances and comprehensively standardizes the

improvement activities for all employees optimized core business processes and continuously improved the quality hazardous substances control process of products from raw materials to finished products. In this way Easpring

management capabilities of personnel. ensures that the products do not contain harmful substances such as lead mercury hexavalent chromium

During the reporting period Easpring carried out a series of quality culture-related lectures and trainings with polybrominated biphenyls (PBBs) and polybrominated diphenyl ethers (PBDEs) and strictly control the environmental

approximately 1500 trainees. protection and safety of the products.In order to ensure the effectiveness of hazardous substance management Easpring entrusts external professional third

parties to conduct hazardous substance testing on finished products every year. In addition Easpring posts relevant

labels on shipped products to convey the environmental protection attributes of products to clients in a responsible

Practical training on six core tools of quality management manner. At the same time Easpring puts forward strict requirements for suppliers and needs to provide test reports

that meet relevant standards to effectively prevent harmful substances from flowing into the production process.In 2024 Easpring will hold practical training on the six core tools of quality management. Through case During the reporting period all products of Easpring passed the RoHS directive REACH regulations and halogen-free

explanations practical drills group discussions and internal project reviews Easpring will conduct tests of third-party professional organizations and obtained qualified reports.comprehensive training on the application of tools such as advanced product quality planning (APQP) failure

mode and impact analysis (FMEA) and measurement system analysis (MSA) statistical process control (SPC)

control plan (CP) and production parts approval procedure (PPAP). A total of more than 40 people from

Easpring's quality management participated in the training.Practical Training on Six Core Tools of Quality Management

REACH Regulation / RoHS Directive and Halogen-Free Third-Party Test Qualification Report

73 74About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Environmental

Protection

Environmental protection is an important pillar to achieve sustainable development. Easpring is

committed to a green development model and increase investment in green technology promoting

reduction of pollutant emissions and the consumption of water resources and energy. Moreover Easpring

promotes resource recycling and protects biodiversity. With these practical actions Easpring is

contributing to the building of a beautiful China.Responses to issues in this Chapter

* Environmental compliance management * Utilization of Energy

* Pollutant emissions * Circular economy

* Ecosystem and biodiversity conservation * Waste disposal

* Utilization of water resources

This Chapter responds to SDGs

Key Performance in this Chapter

* 100% of cathode material operating production bases obtained ISO 14001 environmental management

system certification

* Total environmental protection investment RMB 13.99 million

* Special environmental audit covers 100% of cathode material operating production bases

* The compliance rate of pollutant monitoring is 100%

* 16 products passed the annual review of UL solutions recycled material content certificationAbout Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Environmental Compliance

Easpring strictly abides by national and local laws and regulations such as the Environmental Protection Law of the People's Republic of China and continuously improves the modernization level of Easpring's environmental governance.Management System

Easpring takes "providing green materials for pioneering products and continuously contributing to the era of Easpring has formulated and implemented internal management systems such as EHS Management Manual

ecological civilization" as its environmental management mission and builds an environmental management system at Environmental Protection Management Regulations Environmental Factor Identification and Assessment Control

a high level with reference to the ISO14001 environmental management system and its own management requirements. Procedures and Ten Environmental Iron Regulations to clarify the process of environmental management regularly

identify the environmental factors and possible environmental impacts involved in business activities and strictly

Easpring takes the Safety Production Committee as the highest decision-making body in environmental management

implement control measures in accordance with relevant requirements to ensure the standardization and

with the chairman as the chairman of the committee. The members of the committee include Easpring's senior

effectiveness of environmental management. Easpring sets and updates environmental management targets every

management heads of relevant departments at the headquarters and subsidiaries. It is responsible for formulating

year tracks the performance of environmental targets of each department every month and incorporates them into

Easpring's environmental management policies and measures establishing and improving the environmental

the process performance appraisal. During the Year Easpring's environmental management objectives are as follows:

assessment system organizing environmental inspections and supervising the rectification of hidden dangers. The

office of the Committee is located in the EHS Management Department which is responsible for guiding the

environmental management work of subsidiaries and various departments carrying out environmental inspections

and special supervision organizing emergency rescue work for major accidents and being responsible for the

investigation and handling of major accidents and handling and closing cases. Easpring's cathode material production

bases that have been put into operation have independent safety and environmental protection departments and full-

time environmental administrators who are responsible for establishing implementing maintaining and continuously

improving Easpring's environmental management system promoting the implementation of various environmental

protection systems and improving Easpring's environmental management performance. As of the end of the reporting

period 100% of Easpring's cathode material production bases that have been put into operation have obtained ISO

14001 environmental management system certification.

The proportion of

0 Major 100% production Near-zero discharge

solid waste

environmental waste gas emission of production

recycling continues

accidents standards wastewater

to increase

Easpring’s Environmental Management Objectives

During the reporting period Easpring's environmental management objectives have been achieved no major

environmental emergencies have occurred and no administrative penalties have been received from relevant

departments such as ecological environment.At the same time according to the system certification requirements and the annual audit plan Easpring has carried

out special environmental audits and issued internal audit reports. During the reporting period the special

environmental audit covered 100% of the cathode material production bases that have been put into operation.ISO 14001 Environmental Management System Certification

77 78About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Environmental Protection Investment Biodiversity Conservation

Sufficient investment in environmental protection funds is the key guarantee for carrying out environmental protection Easpring is highly concerned about the impact of its operational activities on biodiversity. Easpring strictly abides by

work. Easpring firmly fulfills its commitments in environmental protection and maintains stable and continuous capital laws and regulations related to biodiversity protection such as the Wildlife Protection Law of the People's Republic of

investment in various environmental protection work. With the completion of several new projects and environmental China the Forest Law of the People's Republic of China and the Wetland Protection Law of the People's Republic of

protection projects of Easpring Easpring's environmental protection investment will gradually stabilize and maintain at China formulates and implements the Environmental Protection Management Regulations and the "Three

a sufficient and reasonable level. During the reporting period Easpring invested a total of RMB 13.99 million in Simultaneous Management Policy of Construction Projects " and defines the environmental protection requirements

environmental protection and paid RMB 262200 in environmental protection tax. in all aspects of project design planning and operation to reduce the impact on biodiversity and ecosystem.During the project design and planning stage Easpring carries out ecological and biodiversity risk and impact

Environmental Emergency Response Capabilities and Training assessment requiring new projects to meet the "three lines and one single" ecological environment zoning management and control requirements and avoiding sites in nature reserves world cultural and natural heritage sites

forest parks geoparks wetland parks and other protected areas as well as near drinking water source protection. At

the same time Easpring actively carried out environmental management system certification and standardized

Easpring continued to improve the environmental emergency management system prepared documents such as the

management of three wastes and adopted effective pollutant control measures to ensure that pollutants are

Emergency Plan for Environmental Emergencies and completed the filing with the local environmental protection

discharged stably and up to standard and reduce the impact on the surrounding environment.management department to clarify the handling process of environmental emergencies. At the same time Easpring has

established an emergency rescue team equipped with emergency management materials and established a smooth As of the end of the reporting period all production sites of Easpring are industrial sites and there are no operating

reporting and emergency response mechanism for environmental emergencies with local environmental protection sites located in or near nature reserves and biodiversity-rich areas; No significant impacts on ecosystems and

management departments. biodiversity have been identified for all production operations products and services.Easpring regularly conducts environmental protection training for all employees to raise their environmental awareness;

Carry out special environmental protection training for personnel in key positions such as sewage stations and

laboratories to effectively improve the professionalism of the environmental management team. Easpring's cathode

material production base that has been put into operation organizes environmental incident emergency drills at least

once a year to ensure that personnel can quickly and effectively carry out on-site emergency response work. During the

3 "Three lines and one list" refers to the ecological protection red line the environmental quality bottom line the resource utilization

reporting period Easpring conducted environmental protection training with a total of 1385 participants; Carried out 7

online and the ecological environment access list.emergency drills for environmental emergencies.

79 80About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Pollutant and Waste Management

Easpring strictly complies with laws and regulations such as the Environmental Protection Law of the People's Republic of China and other standards such as the Integrated Wastewater Discharge Standard the Integrated Air Pollutant Discharge Standard. Easpring

strictly controls the generation and discharge of waste water waste gas solid waste and other pollutants in production and operation take measures to control noise and ensure that pollutant discharge is lawful and compliant.Wastewater Management

Easpring conducts online monitoring of all discharged wastewater pollutants monitors the discharge situation in real

Easpring's wastewater mainly includes production wastewater domestic wastewater and factory rainwater. Following time and gives timely warning and prompt treatment in case of abnormality. At the same time Easpring strictly

the principle of "rainwater and sewage diversion and clean sewage diversion" independent drainage pipe networks are complies with the requirements of national environmental monitoring technical specifications and environmental

set up respectively. monitoring management regulations and entrusts professional third parties to carry out sewage discharge data

monitoring including monitoring of major water pollutants at wastewater outlets monitoring of rainwater discharge

Easpring's production wastewater mainly includes precursor mother liquor wastewater washing liquor wastewater saliva pollutants and environmental monitoring of surface water and groundwater. During the reporting period

laboratory wastewater and workshop washing wastewater. Easpring formulated the "Environmental Protection Easpring entrusted a total of 46 independent monitoring sessions by third parties and the results of online monitoring

Management Regulations" established a "three-level wastewater control process" and clarified the risk points and and independent monitoring of water pollution 100% met standards.control measures of wastewater facilities at all levels.At the same time Easpring has established effective wastewater emergency protection measures and set up accident

For production wastewater and initial rainwater Easpring adopts advanced wastewater treatment technology and wastewater collection tanks initial rainwater collection tanks cofferdams and intercepting ditches and other facilities.builds a high-standard comprehensive sewage treatment station for treatment giving priority to purification treatment Once a wastewater risk accident occurs all accident wastewater will be guided to the accident wastewater collection

and recycling to minimize wastewater discharge. During the reporting period all production wastewater of Easpring tanks for centralized treatment. At the same time relying on the topographic characteristics of each production site

Changzhou was reused after comprehensive treatment achieving zero discharge. Easpring has set up interception ditches around it. The initial rainwater is collected to the initial rainwater collection

A small part of other production wastewater and domestic sewage that need to be discharged will be discharged into tank through the control valve and the rest of the rainwater is discharged into the rainwater pipe network of the park

municipal and park sewage treatment plants for further treatment after being treated by sewage treatment facilities. In in an orderly manner which can realize the control of accident wastewater and possibly polluted rainwater. Through

2024 Easpring has set and achieved the following production wastewater discharge targets: these measures Easpring manages wastewater comprehensively to control and minimize environmental impact.

Waste Gas Treatment

Types of major pollutants Annual targets Target achievement

Easpring will produce a certain amount of waste gas during its operation. Easpring's waste gas includes three parts:

production waste gas experimental waste gas and domestic waste gas. The production waste gas mainly includes dust

generated in product crushing mixing packaging and other sections liquid phase precipitation in the wet workshop

Annual emissions not exceeding 0.25 Emission of 0.0024 tonnes achieved Ammonia gas generated in aging washing and filtration pressing processes and lithium iron phosphate sintering tail

Total Nickel Emissions

tonnes the target gas etc.Easpring has formulated and implemented the Environmental Protection Management Regulations and adopted a

series of measures such as source reduction process control and end-of-terminal treatment to carry out targeted

Annual emissions not exceeding 72 Emissions of 3.29 tonnes achieved emission control of pollutants to protect the health and safety of on-site workers. Easpring has a fully closed

Total COD Emissions

tonnes the target production system automatic feeding closed packaging and captures waste gas pollutants generated in each process

through negative pressure. The capture rate is expected to reach more than 99% reducing unorganized waste gas

emissions from the source.Total ammonia nitrogen Annual emissions not exceeding 20.92 Emission of 0.65 tonnes achieved the Easpring has clarified the sources and types of exhaust gas emissions in each part and adopted scientific and

emissions tonnes target reasonable treatment methods.

81 82About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

For production waste gas its sources types and treatment methods are: Solid Waste Treatment

* Dust (including nickel cobalt manganese and their compounds and particulate matter) is treated by

Waste generated by Easpring includes general industrial solid waste and hazardous solid waste. General industrial

filter cartridge and sintered plate dust collector and a very small amount of dust is discharged

solid waste mainly includes office waste general packaging materials domestic waste etc. Hazardous waste mainly

through the exhaust pipe in compliance;

includes waste engine oil waste oil barrels nickel-containing waste packaging and waste filter cartridges etc.* Ammonia gas is condensed and recovered to achieve clean production.Adhering to the waste management principle of "reduction recycling and harmlessness" Easpring formulated and

* The temperature at the end of lithium iron phosphate burning is incinerated in an RTO incinerator implemented the Regulations on the Management of Solid Waste Reduction and Resource Recycling clarified the

and the discharge meets the standard after bag dust removal and activated carbon adsorption. workflow of solid waste reduction and recycling and continuously standardized waste management.For general industrial solid waste Easpring sets up domestic waste

For experimental waste gas its sources types and treatment methods are: classification boxes and general solid waste warehouses in domestic and

production areas and then entrusts downstream suppliers to process or

* Laboratory particulate matter is collected uniformly and then processed by comprehensive waste recycle them for comprehensive utilization. At the same time Easpring actively

gas treatment equipment and discharged in compliance with regulations; recycles solid waste containing metal compounds and other recyclable

* Ammonia acid mist nitrogen oxides ammonia and volatile organic compounds (VOCs) are uniformly materials and comprehensively utilizes other general wastes by trade-in or

external sales to improve the recycling rate of wastes. During the Reporting

treated by the acid-base neutralization treatment tower in the fume hood and then discharged in

Period Easpring disposed of 1224.70 tonnes of general solid waste achieving

compliance.a year-on-year decrease of approximately 18% in general waste discharge.For hazardous waste Easpring has set up a dedicated hazardous waste

storage room to prevent leakage disposal on the ground posted obvious signs

For domestic waste gas its sources types and treatment methods are: and regularly entrusted qualified hazardous waste treatment suppliers to Garbage Sorting Box

remove transport and dispose of hazardous waste in compliance. During the

* The canteen oil fume is discharged in compliance with regulations after being treated by the canteen reporting period Easpring disposed of 123.96 tonnes of hazardous waste.oil fume purifier.Noise Control

Types of major pollutants Annual targets Target achievement The noise generated by Easpring is mainly mechanical noise caused by mechanical impact friction rotation etc. and

aerodynamic noise caused by aerodynamic force of air.Ammonia gas Annual emissions not exceeding 1.45 Emission of 1.07 tonnes target Easpring gives priority to low-noise equipment reduces noise by improving production processes equipment shock-

tonnes reached absorbing transformation installing noise-absorbing devices strengthening building sound insulation optimizing

production management and other measures and regularly carries out noise monitoring to effectively reduce noise

Particulate matter Annual emissions not exceeding 16.34 Emission of 3.03 tonnes target and control its environmental impact.tonnes reached During the reporting period Easpring carried out 9 independent noise monitoring times and 100% of the noise

monitoring results at the factory boundary during the day and night met the standards.Noise Control of Easpring SDIG Panzhihua for Air Compressor Room

During the reporting period the output of Easpring's precursors and other process products increased but through the

continuous improvement of the waste gas treatment process the emissions of various major waste gas emissions

In 2024 Easpring SDIG Panzhihua will carry out a jet crushing system noise control project in the air compressor

remained fluctuating and stable. At the same time Easpring has set up standardized waste gas sampling points and

room of the first workshop. By installing sound absorption and insulation modules adopting active elimination

entrusted a third-party professional organization to monitor the discharge outlets and environmental monitoring

technology installing sound-absorbing materials and mechanical improvements it will achieve noise reduction

points. During the reporting period Easpring carried out 35 independent monitoring of waste gas pollutants and 100%

of more than 15 dB.of the monitoring results met the standards.

83 84About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Resource management

Adhering to the principle of sustainable development Easpring incorporates the concepts of water conservation energy conservation and biological resources protection into its business development and operation implements water and energy quota

management continuously improves the level of resource conservation and intensive utilization and promotes the comprehensive green transformation of economic and social development.Water Resources Management Energy Management

Easpring's water source is municipal water supply which is mainly used for daily production and life and does not The direct energy consumed by Easpring includes natural gas gasoline and diesel and the indirect energy includes

belong to high water consumption industries. Easpring strictly abides by the Water Law of the People's Republic of spontaneous electricity purchased electricity and steam etc. Easpring does not belong to a high energy-consuming

China "Water Conservation Regulations" and other laws and regulations attaches importance to and continuously industry.improves water resources management formulates reasonable water management plans with the help of the "water

Easpring strictly abides by the Energy Law of the People's Republic of China and other legal norms relies on a sound

balance model" of each production base and regularly conducts on-site surveys on water use scenarios and recycled

energy management system and the construction of a digital management system to continuously improve the use of

water reuse scenarios. Reduce "leakage" and waste of water resources. During the reporting period Easpring had no

clean energy and continue to promote Easpring's green and high-quality development. With reference to ISO 50001

direct or indirect significant impact on water resources caused by changes in water intake water consumption

and other standards Easpring has formulated internal formulations such as Energy Management Regulations

drainage or water storage nor had it experienced difficulties in water intake.continuously established and improved the energy management system clarified the energy management process

Recycling water is an important measure for Easpring to fundamentally reduce water intake protect fresh water and responsibilities of responsible departments and set up special management departments in all production bases

resources and reduce water pressure. Through the use of recycled water equipment and technology and the to be responsible for the formulation approval and assessment management of energy consumption plans etc. At the

installation of filtration and reverse osmosis systems in self-built sewage treatment stations Easpring minimizes the same time Easpring regularly conducts special energy audits in accordance with system certification requirements

consumption of new water and maximizes water efficiency. During the reporting period Easpring's total water intake and annual audit plans and issues internal audit reports on the energy management system. As at the end of the

was 545500 tonnes and its recycling water consumption was 149300 tons. reporting period Easpring Changzhou and Easpring Jiangsu have obtained ISO 50001 energy management system

certification.In addition Easpring actively organizes water-saving initiatives and calls on employees to participate in water

resources protection actions to further enhance employees' awareness of water conservation.ISO 50001 Environmental Management System Certification

World Water Day China Water Week Theme Activities

85 86About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Easpring continues to optimize the construction of digital energy Circular Economy

management system and the energy management system is

interconnected with DCS power backend and other systems to achieve

accurate collection of energy data real-time monitoring and abnormal Faced with the challenges and opportunities brought by a series of overseas sustainable policies and regulations such as the European Union's new EU regulation for batteries

warning. At the same time Easpring has formulated a standard product Easpring is actively promoting its investment layout in the field of battery recycling and has conducted on-site research on multiple power battery recycling projects. At the same

energy consumption model and updated it regularly to continuously time Easpring actively leverages industrial synergy effects and has reached in-depth strategic cooperation with high-quality suppliers in the industry such as Huayou Cobalt GEM

improve the energy utilization rate. During the reporting period Easpring and Zhongwei. Focusing on key materials such as cobalt nickel and lithium Easpring has expanded recycling channels recycling technology research and development resource

Changzhou completed the application of digital energy management sharing etc. Easpring carries out close cooperation in multiple dimensions and jointly assume extended producer responsibilities.system and the timely feedback rate of abnormal energy consumption

Easpring actively integrates the concept of circular economy and is committed to the efficient utilization of materials. Through innovative processes and technological upgrades

increased by 80% improving the level of refined energy management.Easpring realizes the recycling of materials in the production process and the recycling of packaging materials to minimize resource consumption and waste discharge.Easpring is committed to increasing the proportion of clean energy use. By

investing in the construction of new factories in areas rich in renewable

energy applying clean energy such as natural gas and building its own

rooftop distributed photovoltaic projects Easpring has accelerated the

transformation to a cleaner production model. During the reporting period Material Excavating the recycling capacity of production materials achieve efficient recovery and recycling of materials in the production process through

Reuse

the third phase of Easpring Jiangsu photovoltaic power generation project production process optimization and process updating and reduce waste of raw materials and external dependence.was successfully connected to the grid. Easpring's annual total photovoltaic

power generation can reach 7807.51 MWh and clean energy4 use accounts

for 10.58%.Optimizing the packaging recycling system actively reduce the amount of new packaging materials put into use carry out ton bag recycling plan

Packaging

Recycling delivery pallet recycling mechanism and use recyclable sampling bottles for sampling disposable aluminum foil bags in the pre-processing link etc.Achieve packaging reduction and reuse in multiple links.In addition Easpring implements

the principle of circular economy

throughout the R&D and production

of green and low-carbon products

Easpring Jiangsu Photovoltaic Power Generation Phase III Project was and creates resource-saving and

successfully connected to the grid environment-friendly products.During the reporting period 16

products of Easpring including

multi-component materials and

lithium cobalt oxide materials

passed the annual audit of UL

Solutions and obtained UL 2809

recycled material content

certification.UL2809 Recycled Material Content Certification

Easpring Changzhou Rooftop Distributed Photovoltaic

4 Clean energy refers to the energy generated by solar power and natural gas.

87 88About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Value Chain

Management

Under the new pattern of global competition and industrial transformation Easpring deeply

practices supply chain resilience construction and industrial chain value co-creation. By

building a stable and reliable supply chain system it creates a supply ecosystem with shared

responsibilities and leads industry technological collaborative innovation. Easpring is

promoting the symbiosis and co-prosperity of the entire industry chain with high-quality

development.Responses to issues in this chapter

* Supply chain security * Compliance marketing

* Responsible supply chain * Equal treatment to SMEs

* client service and communication

This chapter responds to SDGs

Key Performance in this Chapter

* Supplier training coverage 100%

* Supplier annual audit completion rate 100%

* The signing rate of the Supplier Code of Conduct for main material suppliers is 100%

* Major negative events occurred in the supply chain is 0

* The prompt handling rate of client product service complaints is 100%.About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Supply Chain Supplier Lifecycle Management

Management Easpring has formulated and implemented the Supplier Management Control Procedures Supplier Selection Management Regulations Supplier Audit Management Regulations Supplier Evaluation Management Regulations and other systems clarified the processes and

requirements of supplier classification and hierarchical management development access evaluation and elimination and implemented

standardized supplier life cycle management to ensure that suppliers with relevant qualifications and strength can continuously provide stable

The safety stability and sustainability of the supply chain are crucial to and high-quality supplies.Easpring's production and operation. In promoting the construction of the global

supply chain Easpring standardizes the whole life cycle management of

suppliers standardizes the ESG behavior of suppliers strengthens the * During the potential supplier identification phase conduct preliminary screening and evaluation of suppliers to ensure they

sustainable development capabilities of suppliers and promotes the have production and quality assurance capabilities while also communicating thoroughly to clarify quality requirements and

Supplier

coordination and cooperation between the upstream and downstream of the standards ensuring that suppliers can meet Easpring's quality demands.Development

industrial chain in the field of sustainable development sharing responsibilities

and Access * In the development and introduction phase conduct in-depth audits and assessments of suppliers to ensure product quality

and opportunities. and stability. During the reporting period Easpring achieved a 100% execution rate for new supplier and new product

introduction audits ensuring the quality of qualified suppliers.Supply Chain Security Management

A stable supply of raw materials is crucial to Easpring's continuous production. Easpring * Regularly conduct evaluations and audits of suppliers using various audit formats such as system audits process audits and

continues to promote the construction of the global supply chain strives to improve the product audits to systematically identify supplier management and product risks. Generate a supplier rectification list and

stability and competitiveness of the supply chain ensures the safe and stable supply of Supplier urge suppliers to make corrections while tracking and confirming the effectiveness.key raw materials such as nickel cobalt manganese and lithium and controllable costs Assessment * Based on the supplier evaluation results suppliers can be categorized from high to low into four levels: A B C and D with

so as to achieve in-depth synergy in the industrial chain.clear management principles for each level. During the reporting period Easpring achieved a 100% completion rate for

Easpring has formulated a supply chain construction plan working with key metal annual supplier evaluations and annual supplier audits.suppliers in the industry to jointly build upstream resources. Through multi-dimensional

measures Easpring has strengthened the resilience of the supply chain and established a

strategic supply chain system that integrates "resources-technology-market". In

conjunction with the "1+2+N" supplier strategy cost prediction models for bulk raw

materials such as cobalt lithium nickel manganese and iron phosphate have been

Supplier Establish a mechanism for the elimination and exit of suppliers. For those suppliers who are unqualified and lack a good established. This ensures that there are no fewer than two qualified suppliers for main raw

awareness of improvement they would be eliminated. In severe cases they would be included in Easpring's supplier blacklist

materials further safeguarding supply chain security and enhancing the ability to cope Elimination

management scope.with market fluctuations. During the reporting period Easpring established the Easpring

Finland which further improved Easpring's resource control and product competitiveness

by relying on the partner's resource advantages in nickel and cobalt resources and

spodumene. Easpring launched the supplier management system SRM which realized the online management of supplier information registration access

At the same time Easpring has formulated an emergency supply plan for key raw review assessment change management and elimination processes regularly analyzed and evaluated qualified suppliers and improved the

materials and defined the specific process response level and time requirements of efficiency and precision of supplier management.emergency response in view of the interruption and shortage of key raw materials supply

At the same time Easpring has established a cooperative relationship of mutual trust and mutual assistance with suppliers. Through

and other situations that may affect production so as to ensure that effective measures

systematic training and professional technical support Easpring has improved the business activities of suppliers to reach high standards and

can be taken quickly in case of emergencies and realize the stable operation of the supply

chain and controllable risks. coordinated the sustainable development of the supply chain. During the Reporting Period Easpring conducted 4 trainings for suppliers and

the coverage rate of supplier training was 100%.

91 92About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Supply Chain ESG Management

Easpring practices the concept of sustainable procurement promotes suppliers to improve their environmental and safety management performance strictly screens partners who meet environmental protection and social responsibility standards in the

procurement process actively promotes suppliers to improve their environmental and safety management performance and works with upstream partners to build a dignified and responsible supply chain.In compliance with the guidelines of the Ten Guidelines of the United Nations Global Compact the Convention on the Rights of the Child the Convention on the Minimum Working Age the International Labor Standards the United Nations Convention against

Corruption and the International Labour Organization's Safety and Health Implementation Guidelines Easpring has formulated the Supplier Code of Conduct which specifies the expectations and requirements for responsible behaviors of suppliers in labor and

human rights health and safety environmental protection ethics and corporate governance and requires suppliers to sign the Code of Conduct commitment to continuously improve the sustainable development performance of the overall supply chain through

continuous supplier ESG cooperation and development.During the reporting period 100% of Easpring's main material suppliers signed the Supplier Code of Conduct.ESG Dimensions Requirements for suppliers

Suppliers should prohibit child labour and forced labour oppose discrimination in Social Responsibility Audit Standards for Suppliers

Labour and Human Rights recruitment or employment protect employees' reasonable working hours wages

and benefits and ensure employees' freedom of association.Social responsibility

Employment compliance Benefits and rights Risk management

Suppliers shall ensure the occupational safety of employees implement machine management system

protection improve emergency management prevent work-related injuries and

Health and Safety

diseases provide hygienic living conditions for employees and carry out health and * SA 8000 * Labour contracts * Minimum wage * Corporate risk

safety related training. * RBA * Protection of young standard management system

* ISO 26001 people at work * Paid leave * Risk identification and

Suppliers shall comply with environmental protection laws and regulations prevent * Anti-forced labour * Employee assessment in supply

Environmental Protection environmental pollution and save resources control pollution emissions and try chains* Equality and anti- communication

their best to reduce the negative impact of harmful substances on the environment. discrimination * Satisfaction survey * Risk response strategy

Suppliers should abide by business integrity oppose unfair competition unblock

Code of Ethics reporting channels protect intellectual property rights implement information

Safety and Environmental Audit Standards for Suppliers

disclosure policies and actively participate in community activities.Suppliers should implement ESG management responsibilities and obligations carry

Corporate Governance out ESG risk assessment and management establish information communication Safety and environmental Energy conservation and Production safety and

Environmental compliance

procedures and clarify the corrective action process. management system emission reduction occupational health

* ISO 14001 * Environmental impact * Energy conservation * Emergency plans and

Easpring incorporates ESG audit into supplier life cycle management activities conducts quarterly evaluation and * ISO 45001 assessment and and emission drills

approval reduction program

annual on-site audit of suppliers as planned covering ESG management requirements such as social responsibility * EHS risk identification * Hazardous chemicals

Environmental

management system safety and environmental management system environmental compliance energy conservation and management * Energy conservation management·

violations/complaints and emission

and emission reduction employment compliance and business ethics so as to identify ESG-related risks of suppliers * Safety protection

* Effective treatment of reduction

and urge suppliers to improve their ESG performance and strive to build a green and responsible supply chain system. device

waste gas waste water achievements

* Occupational health

During the Reporting Period there were no major negative incidents in the supply chain and the certification rate of and solid wastes check

ISO9001 quality management system ISO14001 environmental management system and ISO45001 occupational health

and safety management system of qualified suppliers was 100% 81% and 79%.

93 94About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Responsible Mineral Diligence 1 Establish a sound due diligence management system

* Management policies such as Responsible Mineral Supply Chain Due Diligence Policy Supplier Code of Conduct Easpring Human Rights Policy and

Nickel cobalt manganese and lithium are essential raw material Business Ethics Policy have been formulated

elements for Easpring's products at present and Easpring is in the

* The Supply Chain Management Committee was established and the Administrative Measures of the Supply Chain Management Committee were

middle reaches of the responsible mineral supply chain. Easpring

formulated. At the beginning of each year the Supply Chain Management Committee conducts management review on the responsible management of

follows relevant policies such as the Guidelines for Responsible

the mineral supply chain in the previous year inspects the results of supplier audit and the implementation effectiveness of client audit improvement

Supply Chain Management of China issued by the China Chamber of

measures in the previous year puts forward corrective and preventive measures for problems and follow up the implementation

Commerce for Import and Export of Minerals Metals and Chemicals

(CCCMC) and the Guidelines for Responsible Supply Chain

Management of Ore from Conflict-Affected and High-Risk Areas (3rd

Director of the Management Committee

Edition) issued by the Organization for Economic Cooperation and（ General Manager ）

Development (OECD) to continuously strengthen its own supply

chain management and promote upstream and downstream

companies to jointly perform responsible procurement.Easpring carries out responsible supply chain due diligence

management for cobalt nickel manganese and lithium in Representative of the Management System

accordance with the five-step method in the OECD Mineral Diligence （the Procurement Head）

Guidelines an internationally recognized authoritative standard in

the field of mineral supply chain due diligence and advocates

upstream and downstream to adopt and use them. Easpring

continues to expand the scope of responsible mineral supply chain

due diligence management include iron and phosphorus into the

scope of supply chain due diligence management and make efforts Deputy Director of the Deputy Director of the Deputy Director of the Deputy Director of the Deputy Director of the

to build a sustainable and responsible mineral supply chain. Management Committee Management Committee Management Committee Management Committee Management Committee（the Procurement Head） （the Human Resources Head） （the Finance Head） （the Marketing Head） （the Production Head）

* Communicate Easpring's conflict minerals policy to suppliers and 100% of the suppliers sign the Statement on Non-Use of Conflict Minerals" commitment

letter

* Established an efficient MES material traceability management and control system from raw material warehousing analysis and testing production and

manufacturing finished product testing and outbound to ensure the whole process tracking from raw material source to finished product shipment to

client

* Trace the source of purchased materials through supply chain map and conduct pre-audit and self-evaluation of suppliers

* Training materials related to responsible minerals are sent to suppliers from time to time to guide suppliers to improve their ability to conduct due

diligence on upstream

* The Measures for the Management of Responsible Supply Chain Complaints have been formulated which clarifies the complaint channels and handling

procedures. As of the end of the reporting period Easpring had not received any complaints

Responsible Supply Chain Due Diligence Management

95 96About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

As a member of the Responsible Critical Mineral Initiative (RCI) Easpring has

been committed to promoting the construction of a responsible critical

2 Identification and assessment of supply chain risks mineral supply chain since joining the initiative in 2017. Easpring actively

participates in building a communication and collaboration platform to

* promote information sharing and experience exchange between upstream The Regulations on Responsible Supply Chain Management have been formulated which clarifies the due diligence methods for the

and downstream enterprises in the critical mineral supply chain and jointly

upstream supply chain including risk identification and mitigation measures in the supply chain. During the reporting period Easpring

mitigate ESG risks in the supply chain in a systematic way.completed 100% data collection of qualified suppliers of precursors tetracobalt lithium salts and sulfates

* The risks identified through various channels such as Heidelberg's "Global Conflict Barometer" and the CAHRA list of EU conflict minerals

regulations are sorted out and summarized and the risks of each supplier are identified and evaluated. During the reporting period

Easpring's supply chain did not trigger warning signal risks

RCI conducted special training on "Trends and Challenges of

Due Diligence Management of New Energy Battery Supply

Chain"

3 Develop and implement response strategies for identified risks

In January 2024 Easpring invited RCI experts to conduct special

* Report the results of supply chain risk assessment to Easpring's senior management monitor and track the performance of risk reduction training on "New Energy Battery Supply Chain Due Diligence

measures and report timely Management Trends and Challenges" for the senior management

* team and heads of functional departments and had in-depth Incorporate responsible mineral management into supplier life cycle management activities discuss risk mitigation measures with

exchanges with relevant experts to promote the implementation of

suppliers and stakeholders based on Easpring's risk mitigation strategy and guide and help suppliers to establish and implement supply

supply chain due diligence management strategies continuously

chain due diligence management system. During the reporting period Easpring's supply chain was low-risk and no supplier was suspended

Improve Easpring's supply chain due diligence management

from trading due to risk reasons capabilities and promote information transparency and effective

communication.

4 Conduct independent third-party assessment and audit of identified key links in the supply chain

* Easpring incorporated the due diligence audit of responsible mineral supply chain into the on-site audit of suppliers and completed the

audit of 46 suppliers in total and found no major problems involving child labor inhuman treatment forced labor armed conflict and

ecological damage

* Easpring accepts third-party audits to continuously promote the improvement of responsible management of Easpring's responsible

mineral supply chain. During the Reporting Period Easpring received 2 assessments and audits by independent third parties

5 Report on the supply chain risk management process and results

Training Site

* Since 2020 Easpring has compiled and published the Responsible Mineral Supply Chain Diligence Management Report on the official

website every year.

97 98About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Client Service

Adhering to the "client-centric" service concept Easpring continues to improve the client service system optimizes the complaint response mechanism sincerely listens to clients' feedback on Easpring's products and services from multiple channels and is

committed to providing standardized service processes and reliable solutions to global clients.Client Relationship Management

Easpring has formulated client relationship management system documents such as the client Management During the reporting period relying on Easpring's efforts in technological innovation product quality delivery

Regulations and established a full-process client service response mechanism to continuously optimize client service capabilities and tacit cooperation Easpring won awards such as "Best Partnership" and "Diamond Supplier" issued by

experience and improve client service response speed. clients.Pre-sales services In-sales services Post-sales services

Best Partnership Award Diamond Supplier Award

In response to client needs To meet client needs we We respond to and handle

we provide development offer a range of services such quality issues or At the same time Easpring has set up a sales team with high technology high execution ability and high service ability

strategies and plans early as logistics development discrepancies in products or and pays attention to improving the management ability of the marketing team to provide clients with a more accurate

quotations sample delivery order delivery returns and services purchased by our and high-quality service experience. During the Reporting Period Easpring carried out a series of marketing capability

data archiving technical exchanges. clients and provide our improvement trainings and promoted trainees' capability improvement in multiple dimensions through various forms

support supplier clients with comprehensive such as course learning case extraction and internal course sharing with the training coverage rate of marketing

certification and other technical support. personnel being 100%.aspects of support.Easpring maintains active communication and exchange with clients. According to the management regulations of

different levels of clients the sales staff regularly understand the needs and feedback of clients by telephone email

return visit etc. and enter the information into the client information database. Easpring actively promotes a digital

and intelligent client management model and launches a client relationship management system (CRM). Through the

CRM system it continues to improve the whole process management of delivery including planning review delivery

return and exchange return and disposal and receipt as well as the tracking closed-loop of client complaint handling

process so as to improve the efficiency of client service response. The system can also help automate client satisfaction

surveys and provide data support for companies to improve client service quality.Marketing Ability Improvement Training Camp

99 100About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Client Complaints and Satisfaction Responsible Marketing

Survey

Easpring always adheres to the concept of integrity management strictly abides by the Advertising Law of the People's Republic of China and other relevant laws and regulations

ensures the completeness and accuracy of information disclosure in the marketing process integrates compliance awareness throughout the whole marketing process and is

Easpring complies with relevant laws and regulations such as the Civil Code

committed to providing clients with safe and satisfactory products.of the People's Republic of China and the Product Quality Law of the

People's Republic of China attaches great importance to client complaint

management formulates internal systems such as the Client Satisfaction formulate internal construction such as the Measures for the Improve

Control Procedure and the client Complaint Control Procedure establishes system Administration of News and Publicity and the Measures for the

a standardized client complaint handling process and defines the division construction Administration of News and Publicity Platforms to standardize

of responsibilities for handling complaints the level of client complaint compliance marketing and publicity

handling the response upgrade mechanism and the client complaint

closure mechanism. A strict "three reviews and three proofs" mechanism is

Easpring has established a multi-channel complaint feedback mechanism Implementati- implemented for promotional materials such as company

and publicized channels such as telephone email or fax on the official on of review internal magazines WeChat official accounts video accounts mechanism

website so as to quickly understand clients' problems and opinions on corporate intranets and posters and a dedicated person is

product quality and quality technical and market services product delivery designated to be responsible for content review in each link

etc. during product use. During the reporting period the timely handling

rate of Easpring's client product and service complaints was 100%. Compliance Carry out marketing system publicity activities to continuously

Every year Easpring conducts client satisfaction surveys in the form of marketing improve employees' awareness and ability of compliance

promotion

questionnaires including the support of sales and technical personnel publicity

technical level delivery status product quality handling of client

complaints management of hazardous substances and other issues. During Establish an online approval process for news releases realize

the reporting period Easpring has set and achieved a client satisfaction rate Information the process standardization and information of news approval

of ≥ 92%. management: and effectively improve the efficiency and transparency of

Based on the statistical analysis of client complaints and satisfaction approval

surveys Easpring formulates and forms the Internal Performance

Monitoring Survey Statistics Form and the Client Satisfaction Improvement Carry out During the reporting period the coverage rate of marketing

Measures every year promotes horizontal development and preventive marketing review of Easpring reached 100% effectively ensuring the

management among subsidiaries and takes relevant management review accuracy and compliance of marketing content Publicity and Implementation Training of the Administrative

requirements as quality control input to continuously improve products Measures for News Publicity

and services and avoid similar problems.Responsible Marketing Initiatives

101 102About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Industry Development

Easpring continues to deepen diversified cooperation actively expand the breadth and depth of cooperation create a At the same time Easpring also actively contributes wisdom and strength to the development of the industry and

healthy and win-win cooperation ecosystem and jointly promote industry development with all parties.undertakes important work in the following industry associations.Deepen Industry Communication

Easpring gives full play to its resource advantages and professional capabilities and actively carries out in-depth

technical exchanges and cooperation with suppliers and partners. By participating in industry cooperation and

Executive Vice

Vice Chairman of

exchange activities Easpring links up with business partners upstream and downstream of the industrial chain Rotating President of President Unit of

Power Battery Branch

continues to deepen business cooperation and jointly promotes the prosperity and development of the industry. Nickel Industry Branch Panzhihua

of China Chemical and

of China Nonferrous Environmental

Physical Power

During the reporting period Easpring actively participated in the 41st International Battery Symposium and Exhibition Metals Association Protection Industry

Industry Association

China International Battery Technology Exchange (CIBF) and other lithium battery industry-related exhibitions showing Association

Easpring's scientific and technological innovation strength and advanced battery material technology to global clients

and discussing advanced battery technology market trend and future prospects with many international enterprises Expert member of the

Executive Director of China Technical Expert

experts and scholars in the lithium battery industry. Easpring continues to lead the technological progress of the global

Chemical and Physical Committee of Beijing

lithium battery cathode material industry. At the same time it has listened to opinions and suggestions from all parties Power Supply Industry Power Battery Innovation

and gained an in-depth understanding of industry needs and market trends. Association Center

Equal Treatment of SMEs

Easpring complies with laws and regulations such as the Law of the People's Republic of China on the Promotion of

Small and Medium-sized Enterprises the Regulations on Guaranteeing the Payment of Small and Medium-sized

Enterprises and the Provisional Regulations on Enterprise Information Disclosure and is committed to maintaining

the fairness and justice of the supply chain and ensuring the equal status of small and medium-sized enterprises in

cooperation. As of the end of the reporting period Easpring did not publicize the overdue payment information of

small and medium-sized enterprises to the public through the national enterprise credit information publicity system.The 41st International Battery Seminar and Exhibition The 16th International Battery Technology Exchange

Conference/Exhibition

103 104About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Employee and

Community Care

Easpring has always adhered to the employment concept of "valuing the virtues of individuals and

harnessing their talents" promoted the establishment of a human resources system that is compatible with

the development of globalization built an enterprise stage that attracts all kinds of professionals to gather

and achieve their career dreams formed an all-round and multi-level talent training system fully protected

the rights and interests of employees and satisfied their yearning for a better life. At the same time

Easpring actively participated in public welfare undertakings promoted the all-round progress and

development of society with its own actions and created a bright future for sharing sustainable

development.Responses to issues in this chapter

* Compliance employment * Equality diversity inclusion

* Employee development and training * Occupational health and safety

* Employee rights and benefits * Social contribution and rural revitalization

This chapter responds to SDGs

Key Performance in this Chapter

* Employee satisfaction score is 94.0

* The proportion of ethnic minority employees reaches 8%.* The investment in employee training amounts to RMB 1.0336 million

* Easpring's cash welfare investment amount is RMB 24.4884 million and the non-cash welfare

investment amount is RMB 12.6005 million

* The production base for positive electrode materials has achieved a 100% ISO 45001 Occupational

Health and Safety Management System certification

* The investment in safety is RMB 14.4855 million and the investment in work injury insurance is RMB

1.1932 million

* Achieved 100% occupational health examination coverage rate

* The cumulative investment in social public welfare is RMB 2.5504 million

* Volunteer services were provided by 127 individuals with a total service duration of 528 hoursAbout Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Employee Management

Easpring takes "becoming the world's leading innovative enterprise" as its strategic goal of talent development. Driven In compliance with international guidelines such as the United Nations Universal Declaration of Human Rights the

by a talent development strategy centered around business expansion and technological leadership we focus on the International Labor Organization's Declaration on Basic Principles and Rights at Work the United Nations Guiding

four key aspects of "selection cultivation utilization and retention". Easpring continues to build three core teams of Principles on Business and Human Rights and with reference to the provisions of the United Nations Global Compact

"management team with international vision" "R&D team with leading technology" and "industrial workers with Easpring has formulated the Easpring Human Rights Policy conducted human rights due diligence assessed actual

professional skills" to provide a solid talent guarantee for Easpring's high-quality development. and possible human rights impacts prevented and mitigated human rights risks and established a human rights

complaint mechanism to ensure that all employees receive fair and just career development opportunities.Recruitment and Employment Easpring has formulated the Regulations on the Management of Ethical Responsibility the Regulations on the

Protection of Child Labor and Juvenile Workers the Regulations on the Management of No Harassment and No Cruelty

and the Regulations on the Management of No Discrimination strengthened the identification of candidates in the

Easpring complies with relevant laws and regulations such as the Labor Law of the People's Republic of China the recruitment process formulated remedial and preventive measures and required suppliers and service providers not

Labor Contract Law of the People's Republic of China the Law of the People's Republic of China on the Protection of to use child labor; Easpring prohibits any form of employment and occupation discrimination adopts a zero-tolerance

Minors the Law of the People's Republic of China on the Protection of Women's Rights and Interests and the Provisions attitude towards any offensive or insulting harassment or behavior and eliminates all discrimination against ethnicity

on the Prohibition of Using Child Labor and practices the recruitment principle of "openness and transparency merit- race gender region or nationality. During the Reporting Period there was no incident of child labor forced labor and

based recruitment internal and external recruitment". discrimination.Easpring standardized the recruitment and recruitment process formulated and implemented management systems In terms of diversified employment Easpring attaches great importance to the diversity of its workforce fully respects

such as the Employee Recruitment Management Regulations and Employee Entry Resignation and On-the-job freedom of association and is committed to creating a friendly and inclusive workplace environment. Easpring

Management Regulations clarified the process of employee recruitment recruitment and resignation and promoted adheres to equal employment opportunities actively provides equal employment opportunities for people with

the continuous optimization and improvement of the recruitment management system. Combined with the disabilities and recruits and employs ethnic minority employees from different ethnic groups. During the reporting

requirements of territorial management each subsidiary and the labor union signed corresponding collective contracts period Easpring had a total of 11 disabled employees and minority employees accounted for 8%.such as the Comprehensive Collective Contract the Special Collective Contract for Wages the Collective Contract for

the Protection of the Rights and Interests of Female Employees and the Special Collective Contract for Labor Safety

and Health to fully protect the legitimate rights and interests of employees.By gender By educational By age Ethnic minority

qualification proportion of

employee

Male 1342 Ph.D 31 ≤30 692

Female 456 Master's degree 272 30-50 944 Han 92%

Bechelor's degree 589 ≥50 162 Ethnic minorities 8%

College degree and below 906

107 108About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Employee Compensation and Benefits Employee Activities and Care

Easpring attaches great importance to the employee remuneration and welfare system formulates and implements the Easpring advocates the concept of healthy work and happy life and is committed to creating a safe happy and healthy

Remuneration Management Regulations and Employee Performance Management Regulations and other systems and working environment for employees. Every year Easpring regularly carries out a variety of activities such as "sending

builds an institutional system for sharing results with value creators. Easpring takes responsibility ability and warmth in winter" "sending coolness in summer" sending blessings during holidays tea parties essay writing and

performance as the core basis for remuneration comprehensively considers job value job skills competence and photography and team development which creates a good corporate atmosphere and enhances Easpring's cohesion.other aspects and determines employee salaries and bonuses with reference to market salary levels so as to provide At the same time Easpring advocates the combination of work and rest for employees and organizes various cultural

employees with competitive job opportunities and remuneration benefits. and sports activities such as basketball badminton and table tennis for employees to promote the balance between

work and life and enjoy a colorful life.Easpring has established a complete welfare system which provides all employees with full payment of five social

insurances and one housing fund and statutory holiday benefits and provides inclusive benefits for all employees and

provides special benefits for some special positions and employees. During the reporting period Easpring invested

RMB 24.4884 million in cash welfare and RMB 12.6005 million in non-cash welfare. Set up summer daycare classes for employees' children

In response to the practical problems of summer care for employees' children Easpring Changzhou has

Statutory

Benefits * social insurance housing accumulation fund statutory holidays etc. launched a summer daycare class for employees' children to effectively solve the need of daycare for employees'

children during the summer vacation so that employees can work with peace of mind and have no worries.* supplementary medical insurance group accident insurance critical illness insurance

Inclusive

Benefits health examination birthday benefits holiday benefits communication benefits meal

benefits marriage and maternity benefits shuttle bus etc.Special * special post allowance dispatch allowance public rental housing free dormitory

Benefits (factory) serious illness solatium survivors' pension etc.At the same time Easpring has introduced an industry-leading employee stock ownership plan deeply integrates

excess profit distribution with long-term incentive mechanisms and implements multiple rounds of management and

core backbone equity shareholding increase plans to further stimulate the value creation potential of the management

team and core backbones. Share the fruits of Easpring's high-quality development. At present the beneficiaries of

Easpring's equity incentive policy cover Easpring's directors senior managers subsidiary directors supervisors

managers and core employees etc. During the reporting period Easpring implemented the 2024 management and core Summer daycare class for employees' children

backbone equity increase plan with more than 300 participants.

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Family open day activity at Easpring Jiangsu

In May 2024 Easpring Jiangsu held a family open

day event with the theme of "When Love Has a

Home · Rising Sun" allowing employees' families to

have a deeper understanding of Easpring's

development achievements personally feel the

charm of corporate culture and intuitively

experience the working environment of employees. Theme caring activities Holiday events

Further strengthen the emotional connection

between employees and their families and enhance

employees' sense of belonging and the cohesion of

Family Open Day Activities

the enterprise.Celebrate the Torch Festival

"Yi Torch Festival" is one of the national intangible

cultural heritages and the most distinctive folk

activity in Panxi area. In July 2024 Easpring SDIG

Team Development Activities Cultural and sports activities

Panzhihua held the "Celebrate the Torch Festival

and Ignite the Passion for Food" activity to promote

Easpring actively safeguards and protects the legitimate rights and interests of female employees engages

national culture enhance national unity enrich the

psychologists and legal experts as experts of Carnation Workstation carries out legal popularization activities such as

cultural life of employees and provide employees

the Law on the Protection of Women's Rights and Interests declares mutual assistance protection plans for special

with a relaxing and joyful atmosphere.diseases for female employees and carries out festival activities such as International Women's Day and Mother's Day

so as to implement the concern and attention for female employees and create a company atmosphere full of

Torch Festival humanistic care. During the reporting period Easpring Jiangsu won the Demonstration Unit Award of Carnation

Service Station for Female Employees of Haimen District Federation of Trade Unions of Nantong City and the

Advanced Collective Award for Female Employees.Activities for celebrating employees' children's school admission

Beijing Zodngoc expressed warm celebrations to

Easpring's employees and their children who took

the college entrance examination in 2024 sent them

sincere blessings on their way to study and

presented them with gifts for further studies

injecting more benefits into employees and their

families.Celebrations for Employees 'Children's School Admission Demonstration Unit Award for Carnation Service

Advanced Collective Award for Female Workers

Station for Female Workers

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Employee Communication Channels

Easpring attaches great importance to employees' voices and suggestions actively builds diversified communication platforms listens to employees' voices from all aspects and angles and is committed to building harmonious labor relations and optimizing

employee experience.Set Up the Platform on Employees' Representative Management Employee

the QR code Conference Reception Day Satisfaction Survey

Relying on the convenient communication Easpring has formulated institutional policies such Easpring conducts management reception day Easpring conducts employee satisfaction surveys

method of setting up the platform on the QR as the Regulations on the Management of Free activities on a regular basis arranges every year focusing on the nine dimensions of

code Easpring encourages employees to enjoy Association the Guidance Manual for General management members to conduct one-on- "corporate culture internal harmony management

their suggestions and demands anytime and Election of Trade Unions the Management System one in-depth interviews with employees style management mechanism growth and

anywhere. Employees can immediately access of Trade Unions and Employees' Representative listens to and understands employees' needs development logistics support and support

the suggestion submission platform and and Consultation and the System of Employees' and concerns directly and is committed to spiritual reward material reward and social

quickly submit their ideas by scanning a Congress and implemented the employee solving the difficulties encountered by responsibility" to comprehensively understand the

specific QR code. Promote the convenience representative mechanism and collective employees in their daily life and work. During challenges faced by front-line and non-front-line

and efficiency of communication. During the consultation mechanism to allow employees to the reporting period Easpring has organized 8 employees in their daily work and life and

reporting period Easpring received and participate in the construction of Easpring's to management reception days and the problem accurately grasp the core needs and expectations of

completed 179 issues on the platform with a achieve a "win-win" situation for the enterprise resolution rate is 100%. employees. During the reporting period Easpring

timely resolution rate of 100% and employees. During the reporting period distributed satisfaction questionnaires to all

Easpring held 8 employee representative meetings employees except senior executives of which the

and reviewed and approved the revision of the responding rate was 93% with an average

Employee Attendance Management Measures and satisfaction score of 94 points (out of 100 points).other issues.Easpring has established a smooth and confidential employee complaint and reporting mechanism formulated and implemented the Internal Communication Management Regulations Complaint Management Regulations Management Reception Day Management

Regulations and other systems and clarified the complaint handling process handling time limit and result feedback management processes. At the same time Easpring strictly protects the information of complainants or whistleblowers keeps the investigation and

handling process confidential and prohibits any retaliation against complainants whistleblowers or investigation participants.

113 114About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Employee Training

and Development

Talent Cultivation and Development System

Easpring has built a comprehensive talent training system and a smooth

career development channel for employees closely integrating the personal

development of employees with Easpring's long-term strategy so that every

employee can show value ability and talent at work and realize talent New Employee Training Core General Capabilities Development Professional Competence Training Cultiviting Excellent Leaders

growth and company development resonate at the same frequency.Talent Training System Continuously carry out activities such The Ascend Talent Cultivation Project Plan and implement the

Implement a 100-day training plan as internal curriculum development

is aimed at Easpring's senior

talent cultivation project for

when new managers join Easpring experience extraction case summary

management team.the R&D employees

Guided by talent strategy and business development Easpring has formed a and project review to promote the

accumulation of organizational

three-dimensional growth path with hierarchical classification and

experience and wisdom.established a multi-dimensional training system such as induction training The Leap - forward Talent Cultivation

Project is targeted at Easpring's

for new employees general training professional training and leadership

Social recruitment of new employees director - level management

training forming a complete talent supply chain from new employees to Plan and implement the talent

can quickly integrate into the personnel.outstanding leaders providing sustainable talent support for Easpring's Empower business departments with cultivation project for the sales organization accelerate the process

development. employeesof acquaintance and mutual learning and training methods and

understanding strengthen on - the - job practice The Climb - up Talent Cultivation

improvement.Project is aimed at Easpring's

manager - level management

personnel.Taking the onboarding of newly Promote the implementation of

recruited employees from campus as Carry out regular (or irregular) training effectiveness by designing

an opportunity carry out the general - knowledge learning skills learning methods scenario - based

"molding" training for employees and awareness to promote the and client - oriented solutions that The Up - lift Talent Cultivation Project

especially implant the cultural genes construction of a learning - oriented are in line with the learning styles of is aimed at high - potential reserve

into new campus recruits. organization. the trainees. talents and core employees.Positive and negative incentives and mechanism construction

Organizational guarantee and resource input

Establishment of talent cultivation system

115 116About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Easpring has formulated and implemented the Employee Training Management Regulations and other systems Easpring pays attention to the development of internal professional curriculum system and internal trainer talent team

adopted the 721 training rules clarified the management responsibilities and processes of training and formed a starts the development of benchmark curriculum realizes experience extraction and knowledge sharing and

training method that combines online and offline combines training with combat and closed-loop management strengthens the self-"hematopoiesis" ability of talent development.before during and after courses comprehensively improving the job competence and business ability of employees.Easpring supports and encourages all employees to improve their personal academic qualifications and skills and

During the reporting period Easpring's total annual expenditure on training reached RMB 1.0336 million.makes every effort to empower employees to grow through various methods such as supports employees to realize

their dreams job skills competitions and dual tutorial system. At the same time Easpring has set up personalpromotion incentive mechanisms such as “pursuing dreams of education" scholarships academic salaries andprofessional title salaries. During the reporting period Easpring supported 19 employees to realize their personal

academic dreams.Average training Average training Average training Average training

hours of male hours of female hours of hours of grassroots

employees employees management

9.648.7013.358.90

Average training hours of employees by gender Average training hours of employees by position level "Mining and Metallurgy Cup" Job Skills Competition Internal Trainer Award Ceremony

Career Promotion and Development

Easpring adheres to the principles of objective fair and fair promotion management formulates and implements the Regulations on Qualification Management and Regulations on Employee Performance Management comprehensively standardizes performance

evaluation management gives employees fair feedback and provides them with a high-quality growth platform and broad career promotion space. Easpring has established a clear scientific and reasonable career development system followed the basic principle of

"being able to go up and down" promoted the talent selection policy oriented by "performance ability and morality" opened up multiple career development channels for employees and carried out the construction of talent echelon in an orderly manner.During the reporting period Easpring formulated multi-dimensional trainings for new cadres including trainings on role change management skills and leadership to assist new cadres in completing the change of thinking mode and management role and to help

them quickly adapt to the new working environment and improve their working ability and professionalism.

117 118About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Occupational Health

and Safety Occupational Health and Safety

Management System

Easpring strictly abides by laws and regulations such as the Safety Easpring regards production safety as the lifeline of development.Production Law of the People's Republic of China the Social Insurance Law Based on the ISO45001 occupational health and safety

of the People's Republic of China the Trade Union Law of the People's management system it has established a scientific and systematic

Republic of China the Law of the People's Republic of China on the management process continuously improves safety management

Prevention and Control of Occupational Diseases and other laws and capabilities builds a firewall to prevent production safety

regulations puts the health and safety of every employee first continuously accidents and comprehensively guarantees Easpring's production

improves the occupational health and safety management system and operation safety. As at the end of the Reporting Period

establishes a safety production responsibility system covering all Easpring's major production bases in operation have passed the

employees and rules and regulations covering all businesses and builds a ISO45001: 2018 occupational health and safety management

value-creating EHS culture system with Easpring characteristics. Committed system certification. ISO45001 Occupational Health and Safety Management System Certification

to realizing the development goal of "pursuing beyond profit".During the reporting period Easpring established a production safety committee with the chairman of the board as the chairman of the committee. The members of the committee

include Easpring's senior management heads of relevant departments of the headquarters and subsidiaries which is responsible for formulating Easpring's health and safety

1 EHS policy 3 EHS Mission management policies and measures establishing and improving the health and safety management assessment system organizing health and safety management inspections and

supervising the rectification of hidden dangers. The Work Safety Committee has an office of the Work Safety Committee and the EHS Management Department takes the lead in

Safety First People- Provide green materials for

putting forward suggestions on major policies and measures for production safety organizing and carrying out various work related to production safety and supervising the

oriented Full pioneer products and

implementation of various work related to production safety.Participation Green continue to contribute to the

Development era of ecological civilization. Easpring has established systems and procedures such as EHS Management Manual Safety Production Responsibility System for All Employees Safety Production Risk

Classification Management and Control and Hidden Danger Investigation Management Regulations Safety Management Regulations for Relevant Parties at Headquarters Office

Building Management Regulations and Confined Space Management Regulations to implement the safety production management responsibilities of personnel at all levels

standardize safety production management requirements clarify occupational health and safety management objectives and regularly review and review safety management work

EHS Culture and management effectiveness. During the reporting period Easpring established and achieved the following occupational health and safety objectives.System

Occupational Health and Safety Objectives

2 EHS Vision 4 EHS Values

Green Manufacturing Safety and environmental Zero Zero Zero Zero Zero

Healthy Development protection are the red line

the most basic responsibility safety accidents fire accidents administrative environmental occupational

penalties accidents diseases

the greatest benefit and the

best welfare.At the same time according to the system certification requirements and the annual audit plan Easpring carried out a special occupational health and safety audit and issued an

internal audit report. During the reporting period the occupational health and safety audit covered 100% of the cathode material production bases that have been put into

operation.

119 120About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Security Risk Management

During the reporting period Easpring established a five-year "five-year" risk management system with the goal of "building an intrinsically safe enterprise" and "risk

Easpring has formulated a three-year action (2024-2026) to tackle the root management and control" as the main line of work. Following the risk control principle of "elimination substitution engineering control management control and equipping

cause of production safety accelerate the transformation of the production personal protective equipment" Easpring focuses on the systems and links with prominent risks and accidents prone combines seasonal characteristics joins internal and

safety governance model to prevention in advance promote the continued external experts adopts a "pulse-feeling" regular safety inspection mechanism combines daily inspection weekly inspection pre-holiday inspection weekly inspection by

stability of Easpring's production safety situation and provide a safe and part-time safety officers special inspection and other methods to carry out in-depth safety hazard investigation and fully guarantees Easpring's safety and environmental

stable production and operation environment for Easpring's high-quality protection situation continuously and stably. At present Easpring is still in the high-speed construction stage and contractors and on-site suppliers have also been included

development. in Easpring's integrated occupational health and safety management and access review and process assessment have been carried out on contractors' safety qualifications

team quality and on-site management. During the reporting period Easpring Jiangsu won the "Advanced Unit of Fire Safety Management in 2023" and was included in the

Progression "white list" enterprise of local administrative supervision (in the field of emergency management in 2024).Action phase Main Tasks status

In 2024 * Comprehensively carry out a

round of special safety training 5 "Five" EHS Key Risk Management System

eliminate safety and safety hazard investigation

hazard and

control risks * Gather to eliminate major Completed

Five key

accident hazards and ensure Zero Zero Zero Zero Zero

indicators safety incidents fire house accidents administrative penalties occupational diseases environmental accidents

that major safety risks are

controllable

In 2025 * Improve the "Five-Five" Risk Five Organizational Structure

Management System " Management Special Training and and safety responsibility Dual Control System Compliance Management Green and low carbon

Emergency Management

system

strengthen the * Consolidate key risk Pillars

foundation and management and control

consolidate measures operate and

mechanism In progress Five

continuously optimize key risk Related parties hazardous List of key risk personnel and Water balance diagram and management List of key risks and list of Intrinsic Safety management operations and special list of occupational wastewater control flow

management system key fire protection areas foundations equipment management contraindications chart

* Comprehensively improve the

safety awareness level of all

employees Top 5 Safety environmental

Management Hazard Prediction Training and sanitation process Non-standard operation Behavioural Observation Risk Identification JHA + LEC

In 2026 * Use modern information KYT performance and false alarm safety SOP BBS Tools management

technology such as safety

production information

efficiency

improvement platform etc. to ensure real-

with technology time monitoring and early Five basic Ability to know and Risk analysis and hidden Emergency evacuation and Health management and Flood prevention and

To be carried understand safety and danger investigation initial accident handling to prevent risks warning of various risks capabilities first aid capabilities heatstroke prevention ability sanitation capabilities capacity

out

* Safety work has been moved

from safety hazard 5 "Five" Risk Management System

investigation to risk monitoring

to ensure that various risks can Easpring puts the safety and health of employees at the top of its corporate operations continuously increases its investment in employee safety and health and builds a

be prevented dual guarantee mechanism of safety investment and safety insurance. During the reporting period Easpring invested approximately RMB 14.4855 million in various types of

safety and RMB 1.1932 million in work-related injury insurance covering all employees. In addition Easpring also invested RMB 171600 in employer liability insurance

further enhancing the protection of employees.

121 122About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Management of Occupational Health Occupational Health and Safety Emergency Response

Capabilities and Training

Starting from protecting the health and safety of employees Easpring adheres to the combination of "prevention

treatment management and education" establishes a sound occupational health management system implements

Easpring has formulated emergency response procedures and specifications such as Emergency Management

occupational health and safety management from the aspects of providing personal protective equipment carrying out

Regulations Emergency Plan for Production Safety Accidents Emergency Plan for Hazardous Chemicals Accidents and

health examinations and popularizing health culture continuously improves the workplace environment and working

Regulations on Reporting Investigation and Handling of Occupational Health and Safety and Environmental Incidents

conditions and provides more comprehensive and effective health protection for employees. During the reporting

established a sound emergency plan system defined emergency response procedures set up an emergency rescue

period no new occupational diseases occurred in Easpring.team with rich professional knowledge equipped with a number of emergency rescue professionals and emergency

rescue equipment and facilities and conducted regular ability training and drills to deal with various emergencies.Occupational health and safety protection During the reporting period Easpring conducted 42 safety drills covering all employees.* Easpring has established a three-level safety training system covering all employees continuously carries out Formulate and strictly implement the Regulations on the Administration of Labor Products

occupational health and safety training before and during the job and ensures that all employees and contractors have

standardize the procedures for purchasing receiving using and scrapping labor protection articles

substantial occupational health and safety knowledge through assessment. In addition Easpring will conduct

and provide employees with sufficient labor articles;

occupational health knowledge publicity and activities from time to time to continuously improve employees' safety

* Equipped with corresponding protective and emergency equipment in each workplace awareness. During the reporting period Easpring conducted 544 safety trainings covering all employees.standardized the notification and warning of occupational disease hazards in each workplace

carried out occupational health and safety training for all employees and clarified occupational

disease hazard factors and corresponding protective measures.Occupational health and safety monitoring

* According to the requirements of internal systems such as the Procedures for Identification and

Evaluation of Environmental Factors and Hazard Sources Easpring carries out monitoring and

evaluation of occupational hazard factors identifies various occupational hazardous factors existing

in occupational activities and takes timely treatment measures to ensure the health and safety of

employees. During the Reporting Period Easpring conducted regular inspections on occupational

hazards at 592 inspection points. Red Cross First Aid Ability Training for Employees

Occupational health and safety physical examination

* Regularly organize employees to undergo occupational health examinations and carry out on-the-

job on-the-job and off-the-job occupational health examinations for employees in positions

involving occupational disease hazards. During the reporting period Easpring achieved 100%

occupational health examination coverage rate.Organize Evacuation Emergency Drills in Different Scenarios of Day Shift and Night Shift

123 124About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Social Contribution

Easpring attaches great importance to building a communication mechanism with the community pays attention to the needs of local communities and the public actively participates in targeted assistance and helps rural revitalization with practical actions. At the

same time it focused on vulnerable groups carried out various forms of charity activities built a positive and harmonious relationship between Easpring and the local community and made positive contributions to the prosperity and development of the community.Rural Revitalization Community Services

Easpring closely follows the pace of national strategies makes full use of its own industrial advantages and adopts Easpring has always focused on social needs actively fulfilled social responsibilities advocated all employees to carry

various measures such as consumption assistance financial donations and on-site research to continuously out diverse community public welfare activities such as sending warmth offering love and volunteer service according

consolidate and expand the effectiveness of poverty alleviation and continuously contribute to the prosperity and rural to local conditions continuously deepened interaction with community residents in various places continuously

revitalization of poverty-stricken areas. Easpring complies with the requirements of laws and regulations such as the gathered love power and worked together to create a harmonious and beautiful social environment. During the

Charity Law of the People's Republic of China and the Law of the People's Republic of China on Donations for Public Reporting Period 127 employees of Easpring participated in volunteer service activities with a total of 528 hours of

Welfare Undertakings formulates and implements the Measures for the Administration of External Donations volunteer service.strengthens the management and supervision of the use of assistance funds empowers all business segments to carry

out public welfare and charity work from the system process and resources and ensures the solid implementation of

targeted assistance responsibilities.Carry out activities for hearing-impaired children

Since 2019 Easpring has listed Tianyin Rehabilitation Center as a long-term targeted assistance target and has

Targeted assistance always practiced the action of caring and helping the disabled. It has donated a total of RMB 170000 to help the

rehabilitation center lay environmentally friendly outdoor floors purchase air conditioners office computers

Since 2019 Easpring has always been concerned about rural development actively participated in targeted children's educational toys parent-child classroom facilities indoor and outdoor sensory training equipment

assistance actions and extended its helping hand to Pingyu County Henan Province. As of the end of the etc. continuously optimize the learning and living environment of the rehabilitation center enrich the types of

reporting period Easpring had donated a total of RMB 400000 to accurately assist the implementation of a rehabilitation equipment and pave the way for them to integrate into normal social life.number of key local projects help many villages in Pingyu County improve their village appearance appearance

and products build beautiful countryside demonstration sites and continue to make solid contributions to rural

revitalization.Poverty alleviation through consumption

Since the start of the assistance journey in 2019 Easpring has invested a total of 1.7804 million yuan in funds to

purchase consumption assistance materials with the help of the "Central Enterprise Consumption Assistance"

platform closely integrating specific measures to care for employees with the overall situation of national rural

revitalization and taking practical measures to contribute to the cause of rural revitalization.Activities for Hearing-impaired Children

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"Learning from Lei Feng" Theme Activity for Qizhi School Easpring Changzhou launched the 2024 Jintan Scholarship Program

In March 2024 Easpring Changzhou volunteer representatives went to Qizhi School and carefully prepared caring snack gift packages study necessities and toiletries for the

teachers and students of the school. They expressed their deepest respect for those physically disabled but brave and strong children and selfless special education teachers. In the new era it is particularly important to carry forward the good

trend of teenagers' diligence in learning and progress and to inspire

students to aim high and forge ahead. In September 2024 Easpring

Changzhou donated RMB 20000 to the education system of Jintan

District to provide practical help for students who are striving hard on

the road of learning and to help them better pursue their dreams.the Theme Activity of "Learning from Lei Feng" at Qizhi School

Love Without Boundaries Carrying out Voluntary Blood Donation Activities

In August 2024 Easpring Changzhou explained corporate social responsibility with passionate actions and participated in group blood donation in Changzhou for many

consecutive years. Company executives set an example and employees responded enthusiastically gathering the warm current of love with a trickle of blood. A total of

6500 ml of blood was donated free of charge interpreting "Great love has no boundaries" with practical actions injecting positive energy into building a harmonious society.

Easpring Changzhou launched the 2024

Jintan Scholarship Program

Voluntary Blood Donation Activities

127 128About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Appendix I Table of ESG Key Performance Indicators for 2024

Table of Key Environmental Indicators1

Metrics Units 2023 2024 Metrics Units 2023 2024

Energy usage Greenhouse gas emissionsComprehensive energy Total Emissions (Scope 1 + Scope 2 ） tCO2e 280593.87 288716.46

consumption tce 60999.01 75462.10

Scope 1 (direct) emissions tCO2e 7855.36 28040.62

Gasoline tce 33.11 154.73

Scope 1-Stationary Source Emissions tCO2e - 13834.74

Diesel oil tce 16.22 5.83

Scope 1-Mobile Source Emissions tCO2e - 384.22

Purchased electricity tce 52920 59485.28

Scope 1-Industrial Process Emissions tCO2e - 10180.43

Steam tce 8029.68 8791.20

Scope 1-Unorganized Fugitive

tCO2e - 3641.23

Emissions

Natural gas tce 0.004 7025.06

Scope 2 (Indirect) Emissions 5 tCO2e 272738.51 260675.84

Solar energy

tce 171.32 959.54

(spontaneous self-use)

Scope 2 (indirect) emission

6 tCO2e - 4423.65

Total energy consumption intensity tce/RMB million 4.03 9.94 reductions

2 Carbon credits

7 tCO2e - 31665.12

Clean Energy Total Consumption tce 7984.6 7984.6

Carbon emission intensity tCO2e/RMB million 18.55 38.02

Proportion of clean energy use % 0.28 10.58

Direct energy consumption3 tce 49.32 7185.61

Indirect energy consumption4 tce 60949.68 68276.48

Description of environmental data: Description of environmental data:

1 In 2024 Easpring collected environmental data covering all operating production sites and R&D center within the listed entity. The data of Easpring SDIG 5 Scope 2 comes from carbon emissions from purchased electricity and purchased steam where carbon emissions from purchased electricity are

Panzhihua cathode material production base was added compared to last year. calculated based on geographical location.

2 Clean energy refers to the energy generated by solar power and natural gas. 6 Scope 2 emission reduction refers to energy saving and emission reduction achieved through equipment and process transformation.

3 Direct energy consumption comes from gasoline diesel and natural gas. 7 Carbon credits are derived from emission reductions generated from the procurement of hydropower projects certified by the Verified Carbon Standard

4 Indirect energy consumption comes from purchased electricity and purchased steam. (VCS).

129 130About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Metrics Units 2023 2024 Metrics Units 2023 2024

Resource consumption Pollutant emissions88

Water resources Exhaust emissions

Total water withdrawal ‘0000 tonnes 52.89 54.63 Total exhaust emissions Kilogram 3583.86 12638.33

Municipal water withdrawal ‘0000 tonnes 52.89 54.63 Ammonia gas Kilogram 272.16 3067

Total displacement ‘0000 tonnes 14.44 14.45 Particulate matter Kilogram 3311.70 3535.68

Total water consumption ‘0000 tonnes 38.45 40.18 Nickel and its compounds Kilogram - 114.66

Recycling and reuse of water ‘0000 tonnes 14.76 14.93 NOx Kilogram - 1070

‘0000 tonnes / VOCs Kilogram - 661

Water intake intensity 0.0035 0.0072

RMB million

SO2 Kilogram - 4190

Other Resources

Kilogram/RMB

Total exhaust emission intensity 0.24 1.66

Total use of other resources Tonnes 1119.3 1891.45 million

Production packaging Tonnes 1117.3 1889.31 Solid waste generation

Total solid waste generation Tonnes 1615.02 1348.66

Office Paper Tonnes 2.0 2.16

Hazardous waste Tonnes 115.37 123.96

Recycling and usage of other

Tonnes 631.8 457.55

resources

General waste Tonnes 1499.65 1224.70

Intensity of use of other resources Tonnes/RMB million 0.074 0.25

Total solid waste generation intensity Tonnes/RMB million 0.11 0.18

Description of environmental data:

8 Pollutant discharge includes pollutants in waste gas and wastewater. Please refer to Easpring 2024 Annual Report for the approved total discharge

amount and total discharge amount of wastewater pollutants.

131 132About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Table of Key Social Indicators

Metrics Units 2023 2024 Metrics Units 2023 2024

Employee Management Management

Total employees Person(s) 1721 1798 By Gender

By Gender Female Person(s) 22 22

Female Person(s) 429 456 Male Person(s) 100 93

By Age

Male Person(s) 1292 1342

≤ 30 years old Person(s) 2 2

By educational qualifications

30-50 years old Person(s) 110 101

Ph.D Person(s) 26 31

≥ 50 years old Person(s) 10 12

Master's degree Person(s) 234 272

Employee training

Bachelor’s degree Person(s) 531 589

Employee training coverage % 100 100

College degree and below Person(s) 930 906

Total employee training hours Hour 16953.77 10336.01

By Age

Average number of training hours

Hour 9.85 9.43

≤ 30 years old Person(s) 671 692 received by employees

30-50 years old Person(s) 878 944 By Gender

≥ 50 years old Person(s) 172 162 Female Hour 9.67 8.70

By position level Male Hour 9.91 9.64

By position level

Senior management Person(s) 7 8

Management Hour 14.62 13.35

Middle management Person(s) 115 107

General Employees Hour 9.49 8.90

General employees Person(s) 1599 1683

Annual training expenditure amount RMB - 1033565.62

By geographical region

Occupational health and safety

China Person(s) 1717 1795

Occupational health examination

%100100

Overseas Countries and Territories Person(s) 4 3 coverage

133 134About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Metrics Units 2023 2024 Metrics Units 2023 2024

Number of safety drill activities Times 29 42 Product and Service

Work-related injury insurance Complaint handling rate of products

RMB million - 1.1932 % 100 100

investment amount and services

Work-related injury insurance 100 Product Recall Piece(s) 0 0

%-

coverage

Percentage of total shipped or

Suppliers shipped products recalled due to % 0 0

health and safety issues

Total Suppliers1 Company(ies) 132 106

Social welfare

Number of new suppliers Company(ies) 24 16

Total cumulative investment amount RMB million 1.7249 2.5304

Proportion of localized procurement % 21.21 23.58

Number of employees engaged in

Person - 127

R&D Management voluntary activities

Volunteer service hours Hour - 528

R&D Investment RMB billion 0.408 0.370

Proportion of R&D investment to

%2.704.88

business income

Number of R&D personnel Person 412 430

Proportion of R&D personnel % 23.94 23.92

Intellectual Property Protection and Patent Application Table of Key Indicators of Corporate Governance Performance

Cumulative number of patent

Piece(s) 641 834

applications Index Units 2023 2024

Number of new patents Piece(s) 147 193 Anti-corruption

Cumulative number of authorized

Piece(s) 280 352 The proportion of directors involved in

patents % 100 100anti-corruption training

Number of newly granted patents Piece(s) 46 72 The proportion of employees

participating in anti-corruption % 100 100

training

Description of social data:

1 The scope of supplier data statistics includes suppliers of main materials packaging materials and engineering equipment bidding and procurement.

135 136About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Appendix 2 "Self-Regulatory Guidelines No.17 for Companies Listed on Shenzhen

Stock Exchange – Sustainability Report (For Trial Implementation)" and GRI

Index

Sustainability

Reporting Guide GRI Standards Response Section

Sustainability

Reporting Guide GRI Standards Response Section

Chapter I General Provisions Chapter III Environmental Information Disclosure

Article 1 Section 1 Addressing Climate Change

Article 2

Article 3

Article 4 GRI 201: Economic Performance 2016

GRI 1: Foundation 2021

Article 5 201-2 Financial impacts of climate change and other risks

GRI 2: General Disclosure 2021 Governance and opportunities

Article 6

GRI 3: Material Issues 2021 GRI 302: Energy 2016

Article 7

302-1 Energy consumption within an organization

Article 8 Article 20

302-2 Energy consumption outside the organization

Article 9 Article 21

302-3 Energy intensity

Article 10 Article 22

302-4 Reduce energy consumption

Article 23

Chapter 2 Sustainable Development Information Disclosure Framework 302-5Reducing energy demand for products and services Climate Action

Article 24

GRI 305: Emissions 2016 Appendix I Table of ESG Key

Article 25

Article 11 305-1 Direct (Scope 1) Greenhouse Gas Emissions

Performance Indicators for 2024

Article 26

Article 12 305-2 Energy Indirect (Scope 2) Greenhouse Gas Emissions

Article 27

Article 13 305-3 Other indirect (Scope 3) greenhouse gas emissions

Article 28

Article 14 305-4 Greenhouse gas emission intensity

GRI 2: General Disclosure 2021

Article 15 Governance 305-5 Greenhouse gas emission reduction

GRI 3: Material Issues 2021

Article 16 305-6 Emissions of ozone-depleting substances (ODS)

Article 17 305-7 Nitrogen oxides (NOX) sulfur oxides (SOX) and other

significant gas emissions

Article 18

Article 19

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Sustainability Sustainability

Reporting Guide GRI Standards Response Section Reporting Guide GRI Standards Response Section

Section 2 Pollution Prevention and Ecosystem Protection Chapter IV Social Information Disclosure

2-27 Compliance with laws and regulations Section 1 Rural Revitalization and Social Contribution

GRI 303: Water Resources and Wastewater 2018 Article 38 Employee and Community Care

GRI 304: Biodiversity 2016 GRI 203: Indirect economic impacts 2016Article 39 Appendix I Table of ESG Key

304-1 Operating sites owned leased and managed by the 203-1 Infrastructure investment and supporting servicesArticle 40 Performance Indicators for 2024

organization in or adjacent to protected areas and

biodiversity-rich areas outside protected areas Section 2 Innovation Drive and Technology Ethics

Article 29 304-2 Significant impacts of activities products and

Article 30 services on biodiversity Quality Innovation and DevelopmentEnvironmental Protection

Article 31 304-3 Protected or restored habitat Appendix I Table of ESG Key Appendix I Table of ESG Key

Performance Indicators for 2024

Article 32 304-4 has been listed in habitats in areas affected by Performance Indicators for 2024 Article 41

operations Species of IUCN Red List and National Science and technology ethics is not

Article 33 Conservation List Article 42 Not involved applicable and the disclosure subject

does not engage in scientific research

GRI 305: Emissions 2016 Article 43

technological development and other

GRI 306: Waste 2020 activities in ethically sensitive fields

such as life science and artificial

306-3 Waste generated

intelligence

306-4 Waste diverted from disposal

Section 3 Suppliers and clients

306-5 Waste entering disposal

GRI 204: Procurement Practices 2016

Section 3 Resource Utilization and Circular Economy

GRI 308: Supplier Environmental Assessment 2016

Value Chain Management

GRI 301: Materials 2016 308-1 New suppliers screened using the environmental

assessment dimension During the reporting period Easpring

301-1 Weight or volume of material used Article 44 did not have a balance of accounts

308-2 Negative Environmental Impacts of Supply Chains payable (including bills payable)

301-2 Recycled materials used Article 45 and Actions taken exceeding 30 billion yuan or

301-3 Recycled products and their packaging materials Article 46 GRI 414: Supplier Social Assessment (2016) accounting for more than 50% of total

assets. For details of accounts payable

GRI 302: Energy 2016 414-1 New suppliers screened using social evaluation please refer to the Easpring 2024

302-1 Energy consumption within the organization 302-2 dimensions annual report.

Energy consumption outside the organization 302-3 Energy 414-2 Negative Social Impact of Supply Chain and Actions

intensity Taken

Environmental Protection

302-4 Reduce energy consumption

Article 34 Value Chain Management GRI 416: client Health and Safety 2016

GRI 303: Water Resources and Wastewater 2018

Article 35 Appendix I Table of ESG Key 416-1 Assessment of Health and Safety Impacts on Product

303-1 Relationship between organization and water as a

Article 36 Performance Indicators for 2024

and Service Categories

shared resource Interaction

416-2 Violations Involving Health and Safety Implications

303-2 Managing drainage-related impacts of Products and Services

Article 47 Value Chain Management

303-3 Water intake GRI 417: Marketing and Logos 2016

303-4 Drainage 417-1 Requirements for product and service information

303-5 Water consumption and identification

GRI 306: Waste 2020 417-2 Violations Involving Product and Service Information

and Identification

306-1 Waste generation and material impacts related to

waste GRI 418: client privacy 2016

306-2 Management of material impacts related to waste Article 48 418-1 Verified complaints involving invasion of client Governance

privacy and loss of client information

139 140About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Sustainability GRI Standards Response Section Sustainability Reporting Guide Reporting Guide GRI Standards Response Section

Section 4 Employees Chapter V Disclosure of Governance Information Related to Sustainable Development

Section 1 Sustainable Development Related Governance Mechanisms

GRI 401: Hiring 2016

401-1 New Employee Hiring Rate and Employee Turnover GRI 2: General Disclosure 2021Article 51

2-29 Methods of stakeholder engagement

401-2 Benefits provided to full-time employees (excluding Article 52 Governance

temporary or part-time employees) GRI 3: Material Issues 2021

Article 53

401-3 Parental leave 3-1 Process of identifying substantive issues

GRI 403: Occupational health and safety 2018

Section 2 Commercial Conduct

403-3 Occupational health services

403-5 Occupational health and safety training for workers

GRI 205: Anti-Corruption 2016

403-6 Promoting worker health

205-1 Operating points where corruption risk assessment

403-9 Work injury

has been performed

403-10 Work-Related Health Problems Article 54 205-2 Communication and training of anti-corruption Governance

Employee and Community Care

Article 49 GRI 404: Training and Education 2016 Article 55 policies and procedures Appendix I Table of ESG Key

Appendix I Table of ESG Key

Article 50 404-1 Average number of training hours per employee per 205-3 Confirmed cases of corruption and actions taken Performance Indicators for 2024

Performance Indicators for 2024 Article 56

year

GRI 206: Anti-Competitive Conduct 2016

404-2 Employee Skills Upgrading Programs and Transition

206-1 Legal proceedings against anticompetitive conduct

Assistance Programs

antitrust and antitrust practices

404-3 Percentage of employees who receive regular

performance and career development reviews Chapter VI Supplementary Provisions and Interpretation

GRI 405: Diversity and Equal Opportunities 2016

405-1 Diversity of Governance and Staff Article 57

405-2 Ratio of basic salary and remuneration for men and Article 58

women This report has been prepared in strict Article 59 accordance with the Sustainability

GRI 406: Anti-discrimination 2016 GRI 1: Foundation 2021Article 60 Reporting Guidelines including

406-1 Incidents of discrimination and corrective actions indicator indexes etc.Article 61

taken

Article 62

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Appendix 3 Description for Proper Nouns' Abbreviation

Abbreviation Full Name Abbreviation Full Name

SAP System Applications and Products EHS Environment、Health and Safety Management System

MES Manufacturing Execution System RTO Regenerative Thermal Oxidizer

SBTi Science Based Target Initiative VOCs Volatile Organic Compounds

PCT Patent Cooperation Treaty RoHS Restriction of Hazardous Substances

LIMS Laboratory Information Management System REACH Registration Evaluation Authorization and Restriction of Chemicals

PLM Product Lifecycle Management PBBs Polybrominated biphenyls

SRM Supplier Relationship Management PBDEs Polybrominated diphenyl ethers

CRM Client Relationship Management OECD Organization for Economic Co-operation and Development

DCS Distributed Control System RCI Responsible Critical Mineral Initiative

AI Artificial Intelligence CCCMC China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters

BATCH Batch Processing CAHRA Conflict Affected and High Risk Areas

WMS Warehouse Management System CIBF China International Battery Fair

WCS Warehouse Control System

AGV Automated Guided Vehicle

IATF International Automotive Task Force

PDCA PDCA circular（Plan Do Check and Act）

143 144About Easpring Governance Climate Action Quality Innovation and Development Environmental Protection Value Chain Management Employee and Community Care Appendix ESG Report 2024

Assurance Statement

145146