1 Meet the Challenges of Climate Change

Targeting the strategic goal of “carbon neutrality by 2060”, the company has formulated a Carbon Reduction and Carbon Neutrality Management Guideline, and a dual-carbon strategic map, and a three-tier management system of “low carbon, energy conservation, and zero carbon” has been established.

Our production subsidiaries have established the “dual-carbon” team and carry out energy conservation and emission reduction projects each year. We’ve gradually implemented the construction of distributed photovoltaics in each manufacturing park. As of December 2025, distributed photovoltaic power generation with a total capacity of 11.24 MW has been completed, including 3.3 MW at the Topeal Plant in Ningguo Park, 4.8 MW at Longwei Park, and 3.14 MW at Hefei Park, which can reduce carbon dioxide emissions by around 6,700 tons per year. We also purchase green electricity and select low-carbon raw materials.

Actions

1）Strengthen energy conservation and consumption reduction

Each manufacturing park has established a special team working on carbon neutrality, carrying out energy conservation and consumption reduction projects each year, setting quantifiable electricity-saving targets, and continuously exploring carbon reduction potential.

2）Increase the proportion of green electricity
Self-built distributed photovoltaics: promote the construction of distributed photovoltaic projects; total planned capacity: around 21 MW.

3）Purchase green electricity
Purchase green electricity through long-term agreements with power sales companies, gradually increasing the percentage of green electricity consumption year by year to reduce carbon emission.

Roof-mounted photovoltaic system in Hefei campus

2 Environmental Management

The company has set up an ESG Management Committee to coordinate top-level environmental management and comprehensively built a systematic, standardized, and whole process environment and green development management system. All manufacturing subsidiaries have obtained ISO 14001 Environmental Management System certification, and Songjiang campus has obtained ISO50001 Energy Management System certification.

Focusing on key dimensions such as carbon emissions, energy consumption, and hazardous waste, the company has set up quantitative intensity assessment indicators, and implements full-cycle closed-loop control. We regularly carry out identification and evaluation of environmental factors, green and low-carbon products design, control and whole process management of pollution source. We also conduct internal environmental compliance audits and external expert reviews regularly to continuously improve environmental management performance.

The company has established a comprehensive environmental emergency response plan and regularly conducts emergency drills to strengthen risk prevention and emergency response capabilities. We fully incorporate environmental performance indicators into each factory's assessment system, promoting low-carbon transformation through rigid constraints to achieve compliant operation, green development, and sustainable value.

Waste gas treatment facilities in Ningguo factory

3 Biodiversity Protection

We actively implement the United Nations Convention on Biological Diversity, integrating the concepts of ecological protection and biodiversity into the whole process of factory planning, construction, and operation to create a sustainable development community where humans, enterprises, and nature coexist harmoniously.

Our subsidiaries strive to create diverse ecological spaces in available areas, and improve regional ecological environments. We’ve built ecological practice platforms for employees to engage in ecological protection actions, strongly advocate green and low-carbon lifestyles, and enhance all employees' awareness of ecology and biodiversity conservation to jointly build a green and ecological homeland.

River garbage cleaning by Baolong volunteers

4 Forest Protection

We actively practice the concepts of recycling economy and green low-carbon development to reduce forest resources consumption. We promote packaging reduction and recycling, and have formulated and implemented the Packaging and Auxiliary Materials Recycling Management System to promote standardized packaging design and reuse, and improve the recycling rate of packaging. We strive to build paperless workshops and paperless offices, realizing online and digital processes management, and significantly reducing paper usage.

At the same time, we extend green requirements to our supply chain by actively guiding suppliers to use renewable and degradable packaging materials, and reducing dependence on wood resources.