CONTENTS
About This Report 01 Governance and Innovation Supply
Chairman's Message 03 Compliance and Quality Chain
Step into LAZZEN 05
Sustainable Development Management 19 Innovation-Driven Development 39 Supplier Management 67
Honor 2025 07
Corporate Governance 22 Intelligence Ecosystem Products 47 Sustainable Supply Chain 68
Risk Compliance 27 Digital Transformation 51 Supply Chain Security 70
Key Performance 121 Business Ethics 33 Product Quality 54 Treat Small and Medium-Sized 72
Enterprises Equally
Indicator Index 129 Customer Service 59
AA1000 Independent Assurance Statement 135
Information Security and Customer Privacy 63
Protection
Environment Employee Collaboration and
Special Topic:
Public Welfare
Zero Carbon Manufacturing
Makes Green Future 09
Responding to Climate Change 75 Employee Rights 103 Industry Collaboration 117
Environmental Compliance Management 82 Employee Care 106 Social Welfare 120
Resource Management 86 Talent Development 111
Pollutant Emissions 92 Occupational Health and Safety 112
Waste Management 96
Chemical Management 99
Biodiversity Conservation 100
About This Report ?Accuracy
LAZZEN will do our best to ensure the accuracy of the information. The quantitative data presented in the report are
based on actual data of our internal production and operation, and there are no false records, misleading statements
or material omissions.
Report notes ?Completeness
The information in this report cover LAZZEN and the companies we controls. At the same time, this report also
This report is the fourth ESG report released by Shanghai Liangxin Electrical Co., LTD. (hereinafter referred to as discloses relevant information in full based on our circumstances.
"LAZZEN","we" or "the company") to stakeholders. This report provides detailed information on our practices and
performance in environmental, social and governance areas for the year 2025, aiming to systematically respond to
the expectations and requirements of all stakeholders. Clarity
The figures, data references, and technical terms in this report, which involve complex understanding, will be
sourced and explained in plain language.
Report scope
Background of Sustainable Development
This report covers the period from January 1, 2025 to December 31, 2025 (referred to as the "reporting period")
LAZZEN actively responds to sustainable development trends, identifies stakeholders and key topics in light of
and focuses on the performance of environmental, social and governance responsibilities in 2025. For the sake of
the characteristics of our electrical equipment industry and business operations, and engages in stakeholder
continuity and comparability, some parts appropriately trace back to previous years.
communication. For details, please refer to the section on sustainable development management.
Report data description ?Balance
The content of this report truly reflects the objective situation of LAZZEN's operation, without exaggeration or
The financial data in the report is derived from our audited financial reports, and the other data are derived from our misleading description, fully discloses the positive and negative information that exists in our operation process, and
internal documents and aggregated information statistics. Unless otherwise stated, the currency types and amounts strives to be fair, objective and balanced.
involved in this report are measured in CNY. There are no false records, misleading statements or material omissions
in this report, and we are responsible for the truthfulness, accuracy and completeness of the report.
Verifiability
The cases, management systems, and quantitative data in this report are derived from actual circumstances in our
Basis of preparation operations, and all information is traceable.
Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 17 - Sustainable Development Report (Trial) ?Quantification
Shenzhen Stock Exchange Self-Regulatory Instructions for Listed Companies No. 3 - Preparation of Sustainable
The quantitative data disclosed in this report will be disclosed as continuously as possible, and the reliability of the
Development Reports
disclosed data will be continuously improved to demonstrate the development trend of our ESG management level.
Ministry of Finance Corporate Sustainability Disclosure Standards - Basic Standards (Trial)
Finance Department Corporate Sustainability Disclosure Standard No. 1 - Climate (Trial)
Global Sustainability Standards Board Sustainability Reporting Standards (GRI Standards)
Report release and contact information
Reporting preparation principles You can consult or download the electronic version of this report on the official website of Shenzhen Stock Exchange
(www.szse.cn). If you have any questions or suggestions about this report, please feel free to contact us at any time:
?Timeliness
Tel: 86-21-68586699
After the end of fiscal year 2025, we immediately initiated the preparation of this report. After being reviewed by the Fax: 86-21-23025796
board of directors, the report was released, and the disclosure time was no earlier than the Annual Report and no Email: lazzen@lazzen.com
later than April 30. Address: 2000 South Shenjiang Road, Pudong New Area, Shanghai
Chairman's Message
Dear colleagues, partners and friends from all walks of life: For employees, we improve the compensation and benefits system, build a "dual-track" career development path,
and strengthen safety production and occupational health management at the same time, achieve full coverage
development. We are committed to the vision of "Becoming a global leader in smart low-voltage electrical solutions" environment for employees. To our customers, we adhere to the principle of "Customer-oriented, quality as dignity",
and the mission of "unlocking electrical intelligence and empowering human and nature to live in harmony", moving and through our customer service system covering both domestic and overseas, we provide 7×24-hour rapid
steadily in the ESG field and responding to the trust and expectations of all parties with concrete actions. This year, response services to global customers and continuously enhance customer satisfaction.
we have further refined our ESG organizational management structure, deeply integrated the concept of sustainable
development into strategic planning and daily operations and formed a full-chain responsibility system led by the We continuously improve the modern enterprise system, optimize the governance structure, and form a decision-
decision-making level, driven by the management level, and implemented by the executive level to ensure the making and management system with clear rights and responsibilities and standardized operations. We continuously
orderly implementation and effectiveness of all ESG initiatives. enhance the quality of information disclosure and communication with investors, actively respond to investors'
concerns and demands, ensure the stable operation and long-term value creation of LAZZEN, and effectively
With "Zero Carbon Manufacturing" as our core, we are fully committed to the green transformation. As a leading Zero safeguard the rights and interests of all shareholders and stakeholders. We have strengthened risk compliance
Carbon demonstration plant in China, the Hangzhou Bay Mega Factory has built an integrated innovation scenario management, established a "three-line defense" risk prevention and control system, improved anti-corruption and
of "Photovoltaic, energy storage, direct current, flexibility (PEDF)", with a total annual carbon emission reduction of anti-monopoly systems, and created a clean and upright business environment.
about 20,000 tons in the future. We have been awarded the Five-Star Zero Carbon Factory Certification and selected
as a demonstration project of the National Key Research and Development Program during the 14th Five-Year Plan. Looking ahead, LAZZEN will continue to focus on sustainable development, deepen ESG governance, and make
We have established a three-tier collaborative architecture of "equipment - control - platform" and achieved full- continuous efforts in areas such as Zero Carbon technology research and development, digital transformation, talent
chain resilient carbon reduction from energy production to terminal consumption through self-developed energy cultivation, and supply chain collaboration. We will further refine our Zero Carbon solutions, drive more customers
and carbon systems. At the same time, we continuously optimize resource utilization efficiency and effectively to achieve green transformation, and continue to steadily move forward on the path of empowering harmonious
promote energy conservation, emission reduction and circular economy through measures such as water recycling, coexistence between humans and nature!
waste classification and disposal, and energy-saving technological transformation, responding to the national "dual
carbon" goals with concrete actions.
We adhere to the principle of "People-oriented, chain drive for win-win" and fulfill our responsibilities in all aspects. Ren Silong, Chairman
Shanghai Liangxin Electrical Co.,LTD.
Step into LAZZEN Major Events of 2025
Company Profile LAZZEN and KINGJEE Group officially
signed a strategic cooperation
agreement in Nanjing. Both sides will
LAZZEN was established in 1999 and listed on the Shenzhen Stock Exchange in 2014 (stock code: 002706.SZ). carry out in-depth cooperation on
Positioned as an expert in smart low-voltage electrical solutions, LAZZEN focuses on the research and development, LAZZEN Magic Cube "Tianqi" series
production, sales and service of medium and low-voltage electrical appliances, vehicle-mounted devices, products and smart home solutions to LAZZEN's Hangzhou
instruments and meters, smart energy and carbon, and smart living. Our products and solutions are widely used in jointly create a new model of high-end Bay Mega Factory was
various scenarios from power generation, transmission and distribution to power consumption. Our business covers smart home. certified by Bureau
more than 30 sub-sectors in areas such as smart computing centers, new energy, infrastructure, rail transit, smart
Veritas for ISO 50001
buildings, power grids, industrial control, etc.
energy management
system. LAZZEN Hangzhou
LAZZEN has always adhered to the core value of "achieving customers", and our service network covers more
Bay Mega Factory
than 140 cities in China and more than 30 countries and regions overseas. Through end-to-end organization and At the "2025 Brand Day
was awarded the
system, we provide professional and efficient services to customers worldwide. LAZZEN drives product research and Trademark Brand Development
five-star standard
development based on customer needs, and our Research and Development (R&D) Center has been recognized as Conference" hosted by the
for Zero Carbon
a "National Enterprise Technology Center". We also have an enterprise postdoctoral research workstation, and our China Trademark Association,
Factory.
laboratory has been accredited by both the China National Accreditation Service for Conformity Assessment(CNAS) LAZZEN was awarded the title On July 11, "Good House
and Underwriters Laboratories. of "AAA Well-Known Trademark Opens Today" - the opening
Brand". ceremony of the LAZZEN
Brand Positioning Core Values Good House Co-built
showroom was grandly
Expert in smart low-voltage electrical solutions Smart, Green, Safety, Customized, Service LAZZEN and HOKO held at LAZZEN's Shanghai
On June 5, LAZZEN's
Electric signed a headquarters.
new smart showroom
strategic cooperation
at Hangzhou Bay Mega
agreement. Both
Vision Mission Factory opened grandly.
sides will give full
Aiming to Be a Global Leader in Smart Low-Voltage Empowering Harmony Between Humanity and play to respective
Electrical Solutions Nature with Smart Electrical Solutions synergy advantages in
technology research LAZZEN's Safety Integrity
and development Level (SIL)-certified frame
and market circuit breaker has passed
Development Strategy
expansion to jointly the "SIL2" Certification. On September 25th,
Focus on smart low-voltage Adhere to a mid-to-high-end Upgrade energy efficiency with build an innovative "Jinghong" - 2025 LAZZEN
electrical, select target market positioning and focus on intelligent distribution, enhance user development path Smart Power Distribution
aggregation strategy, and advance benchmark customers in sub- experience with smart living, and Tasting Event and Partner
of smart low-voltage
international development. sector. empower the new power system with
electrical under the Ecosystem Conference
new energy electrical technology.
guidance of the "dual was successfully held in
carbon" goals! Hangzhou Bay.
Values
Customer Success Proactive and Enterprising Seek Truth and Self-Reflection Open and Collaborative
Customer-oriented, Aim high, be innovative, Respect the laws, be Embrace different
constantly meet customer take responsibility, be a realistic, be honest and cultures, listen to different
needs, help customers trusted industry expert for trustworthy, self-criticize, opinions and suggestions,
succeed, and achieve the customers. due to internal factors, embrace change, recruit
common development of constantly surpass, always talents, concentrate
customers, companies, maintain the spirit of hard efforts on a single point,
teams, and individuals. work and struggle. and strive for overall
excellence.
Honor 2025
Shanghai LAZZEN Haiyan LAZZEN
Key Cultivated Advantageous Zhejiang Green and Low-Carbon
Shanghai Design Outstanding Contribution High-Tech Enterprise National Advanced Smart Factory
Enterprises with Independent Factory
Innovation Center Award for Pudong New Area
Intellectual Property Rights
Economy and Information Technology Department of Zhejiang Economy and Information Technology Department of Zhejiang
Shanghai Municipal Commission of Economy and Information Technology
Shanghai Customs Shanghai Pudong New Area Government Zhejiang Provincial Department of Finance
Department of Zhejiang
Zhejiang Provincial Development and Reform Commission
Economy and Information Technology Zhejiang Provincial Tax Service, State Taxation Administration Department of Ecological Environment of Zhejiang
Certificate of Evaluation of Well- Zhejiang Industrial Zhejiang Enterprise Research Zhejiang Provincial Water-
Electrical Appliance Market Sales of Shanghai Manufacturing
Known Trademark Brand Internet Platform Institute Saving Enterprise
Leadership Award Individual Champions Economy and Information Technology Department of Zhejiang
Shanghai Municipal Commission of Shanghai Federation of Industrial Economy and Information Technology Economy and Information Technology Housing and Urban-Rural Construction Department of Zhejiang Province
China Trademark Association Department of Zhejiang Department of Zhejiang
Economy and Informatization Technology Economics
Department of Water Resources of Zhejiang Province
Zhejiang Provincial Office of Water Conservation
Advanced Trade Union of Jiaxing Municipcal Cleaner
Techology Companies - Industry 2025 Diamond Partner Unit Enterprises for Artificial Jiaxing Municipal Green Factory
Kangqiao Industrial Zone Production Enterprise
Standards List TOP 50 Intelligence Applications
Shanghai Industrial Technology and Trade Union of Kangqiao Industrial Zone, Building Electrical Branch of the Economy and Information Technology Jiaxing Municipal Bureau of Economic Jiaxing Municipal Bureau of Economic
Innovation Association Zhangjiang Science City, Shanghai Architectural Society of China Department of Zhejiang and Information Technology and Information Technology
Diamond Partner of Jiangsu Zhejiang Provincical Specialized
China Best Managed Companies Top 20 Industrial Enterprises National Key R&D Program of
Province Building Electrical iF Design Award and Sophisticated Small and
Academic Annual Conference Medium-Sized Enterprises (SMEs)
Demonstration Project - Haiyan
Building Electrical Committee of Jiangsu Economy and Information Technology
Civil Engineering & Architectural Society
iF Industrie Forum Design Deloitte China Management Excellence Haiyan County Committee of the Communist Party of China LAZZEN Office Building PEDF
Department of Zhejiang The People's Government of Haiyan County
Project
Research and Application Project of Key
Member of the 10th Council of the Jiaxing Vocational & Technical College Haiyan Branch Campus Technologies of PEDF Building DC Power
High Voltage Switchgear Branch Industry-Education Integration Base Distribution System
Computing 800V DC System Solid-State Circuit Breaker Product
(2025-2030)
High Voltage Switchgear Branch of China
China IDC Industry Annual Conference Organizing Committee Jiaxing Vocational & Technical College
Electrical Equipment Industry Association
Liangyun Technology Smart Electrician
Software Enterprise Certificate High-Tech Enterprise National-Level Specialized, Sophisticated, Distinctive,
High-Tech Enterprise
and Innovative "Little Giant" Enterprises
China Software Industry Association Shanghai Municipal Science and Technology Commission Shanghai Municipal Commission of Economy and Information
Shanghai Municipal Science and Technology Commission
Technology
Special Topic
Zero Carbon Manufacturing
Makes Green Future
LAZZEN Hangzhou Bay Mega Factory - Creating a Leading Zero Carbon
Demonstration Plant in China
LAZZEN has built the Hangzhou Bay Mega Factory into a leading Zero Carbon demonstration plant in China,
relying on its system solution capabilities in intelligent power distribution and energy management to
create an integrated innovative scenario of source-grid-load-storage and PEDF.
LAZZEN's Zero Carbon plant integrates 4.695MW distributed rooftop photovoltaics, 4.75MW/10MWh National Key Research and Development
electrochemical energy storage and 62 smart AC and DC V2G charging piles. And fully deploy building air Zero Carbon Plant Verification Statement LEED Green Building Certification
Program of the 14th Five-Year Plan
conditioning and lighting automation, industrial water machine air conditioning automation, DC flexible
load management, intelligent distribution management, microgrid management, smart energy and carbon
management systems and equipment, etc. The project is equipped with LAZZEN smart power distribution
?Clean Energy
equipment and PX power distribution expert system to
achieve precise metering of end-point sub-item energy
consumption and carbon emissions. The LAZZEN microgrid
The Hangzhou Bay Mega Factory has currently built a 4.695-megawatt distributed photovoltaic system and plans to
solution, with the MX microgrid expert system and microgrid
add an additional 7.15-megawatt wind power installation by 2026. This project has already made some significant
controller, achieves source-grid-load-storage optimized
progress in 2025. Through the dual drive of "self-generation for self-use + purchase of green electricity", the plant
scheduling through the leading LAZZEN artificial intelligence
has achieved 100% green power supply - nearly 20% of which comes from the renewable energy facilities built by
(AI) optimized scheduling strategy algorithm, and reduces
the plant itself, and the rest is supplemented by purchasing certified green electricity and green certificates. This
carbon dioxide emissions by approximately 3,800 tons per
diversified green power structure not only significantly reduces Scope 2 carbon emissions but also provides a stable
year. When the distributed 7.15MW wind turbine project is
green energy foundation for the carbon reduction operations at the manufacturing end.
put into operation and integrated into the plant's microgrid
in 2026, the annual green power generation of the LAZZEN
Zero Carbon plant project will reach approximately 20
million kilowatt-hours, and the total annual carbon
reduction of the plant will be approximately 20,000 tons. Hangzhou Bay Mega Factory
With systematic practices in green manufacturing and deep decarbonization, the plant has received multiple
authoritative recognitions:
Recognized as Zhejiang Provincial Green Low-Carbon Factory
Through Bureau Veritas third-party verification, we were awarded the Five-star Certification of Zero Carbon Plant
in accordance with the Evaluation Specification of Zero Carbon Factory (T/CECA-G 0171-2022)
Obtain the PAS2060 Carbon Neutrality Certificate certified by Bureau Veritas.
Selected as a demonstration project of Key Technologies and Equipment for Urban Sustainable Development
under the National Key Research and Development Program of the 14th Five-Year Plan
Recognized as a New Energy High-Proportion Application Demonstration Project by the Energy Bureau of
Zhejiang Province
Received LEED Green Building Certification
The above achievements mark that LAZZEN's low-carbon transformation in operation has entered the leading
ranks of the industry, providing a replicable and verifiable technical paradigm for the construction of Zero Carbon
manufacturing plants. Distributed photovoltaic
Resilient carbon reduction
Data security and autonomy: The PX system uses
an on-premises deployment architecture, and all
In the construction of Zero Carbon Plant, the distribution system, as the central link connecting new energy
data (energy consumption data, carbon emissions
generation and multiple loads, needs to have panoramic perception, intelligent decision-making and millisecond-
data, equipment operation data) are stored on
level control capabilities. In the Hangzhou Bay Mega factory, LAZZEN builds an elastic carbon reduction system
servers within the park. This means relying on the
covering the entire chain of "source-grid-load-storage- charging" by integrating the software and hardware synergy
public network, and even if the external network is
of the MX Microgrid Expert System and the LEC300 Microgrid Coordination Controller based on the PX Power
interrupted, local monitoring and control remain
Distribution Expert intelligent distribution system.
available.
PX Power Distribution Expert
PX Power Distribution Expert
PX Power Distribution Expert is a localized smart power distribution management platform developed by
LAZZEN for Zero Carbon plants. Its core value lies not only in enhancing the safety and operational efficiency
of the power distribution system, but also in providing a solid, adjustable and quantifiable underlying
support for "resilient carbon reduction". Under the Zero Carbon goal, the carbon reduction path of the plant
MX Microgrid Expert
cannot rely on a single, rigid means, but must have the ability to dynamically adjust according to energy
demand, green power supply, electricity price mechanism and external policies - the PX system empowers
the plant to reduce carbon resiliently through deep perception and fine control. MX Microgrid Expert System is a smart energy management platform developed by LAZZEN for park-level
microgrids. It covers the five core links of the energy system: power generation, power distribution, power
The system is fully integrated with LAZZEN's self-developed smart circuit breakers, multi-functional meters consumption, energy storage, and charging. By connecting to LAZZEN's self-developed collection, metering,
and environmental sensors from the main distribution room to the end circuit, collecting multi-dimensional control and protection devices, it achieves panoramic visual monitoring, integrated operation control and
data such as current, voltage, power, energy, circuit breaker contact temperature, operation frequency and safe and reliable guarantee of energy equipment throughout the domain.
health status in real time, transforming the traditional "black box" distribution system into a transparent and
intervenable digital system. Based on this, PX has achieved the following key capabilities that directly serve
energy conservation and carbon reduction:
With an intuitive 2.5D/3D dashboard, managers can always keep track of:
Real-time power generation (PV/wind) and power consumption
Precise metering of sub-item energy consumption: The system automatically generates pie charts, trend Energy storage charging and discharging status and revenue strategies
curves, and comparative analyses of energy consumption composition based on fine statistics of electricity
Charging station operating efficiency and revenue statistics
usage types such as light, air conditioning, power, sockets, etc., to help managers monitor and analyze;
Analyze energy consumption and carbon emissions data
Carbon emissions back to the loop level: By combining grid emission factors, carbon emissions are Abnormal fault alerts and operational suggestions
associated to specific equipment or areas to make carbon reduction measures quantifiable and verifiable;
Load rigid regulation support: Under the premise of ensuring safety, support multiple rigid regulation
means such as remote opening and closing, timed control, and scene linkage (such as automatic light and The system also supports intelligent regulation of key
air conditioning off in "off-duty mode"), in combination with the microgrid dispatching strategy to achieve energy-consuming equipment such as lighting and air
the transfer of electricity usage time periods; conditioning, including automatic switching between
"day/night mode" and remote startup/shutdown
Green power consumption synergistic response: PX seamlessly integrates with the upper-level park of air conditioners, which enhances comfort while
microgrid system. When a surplus of photovoltaic output is detected, it can automatically execute the achieving energy conservation and carbon reduction.
synergistic strategy, temporarily activate the energy storage charging circuit or activate the adjustable load
to increase the green power self-use rate;
Demand critical active intervention: Real-time monitoring of the total incoming line power, and rapid
removal of non-critical loads when approaching the demand threshold to avoid purchasing high-priced
and high-carbon mains power or triggering fines;
Equipment health early warning drives energy efficiency improvement: PX builds a full life cycle health
model of circuit breaker equipment based on predictive indicators such as the number of circuit breaker MX Microgrid Expert
operations, temperature rise, and aging trends, to detect deteriorating equipment in advance and reduce
hidden energy consumption losses;
?LEC300 Microgrid Coordination Controller Carbon reduction through equipment
In the smart energy system of Zero Carbon plants, the LEC300 microgrid coordination controller is the core
device for achieving local real-time control and optimization. Designed specifically for new energy stations, The Hangzhou Bay Mega Factory was fully integrated with the Zero Carbon concept at the early planning stage.
it is deployed in key links such as source, grid, load, storage, and charging, responsible for all-element data The office building has obtained LEED Green Building Certification, and the production plant is applying for Green
collection and millisecond-level closed-loop control, and maintains stable communication with the upper- Industrial Building Certification. Through passive designs such as high-performance building envelope, optimized
level MX microgrid expert system, uploads operational data, receives dispatch instructions, and forms an natural lighting, and improved thermal performance, the initial load requirements of systems like air conditioning
edge-cloud collaborative architecture. and lighting are significantly reduced, thus reducing energy consumption from the source.
Based on this, the plant implements full life-cycle energy efficiency management for all energy-consuming
equipment:
LEC300 supports the park in achieving its economic operation and green energy use goals through multiple
control strategies：
At the equipment end, use In the power transmission At the operational control
Peak-valley arbitrage: Based on user-configured time-of-use pricing templates, charge during off- low-power switches, low-drop section, deploy low-resistance level, through energy-
peak hours and discharge during peak hours to reduce electricity charges, applicable to industrial and components, green materials distribution cables and saving optimization
commercial users subject to time-of-use pricing. and efficient control circuits low-loss power conversion algorithms and intelligent
to reduce ontology loss. equipment to reduce line loss. dispatching, redundant
Demand defense: Real-time monitoring of the total meter demand value at the gateway, automatically
operations are avoided.
triggering control actions such as reducing energy storage charging, initiating energy storage discharging,
lowering the power of charging piles or adjusting adjustable loads when approaching the set limit, to avoid
additional costs or fines for exceeding demand, applicable to two-part tariff users.
Most importantly, LAZZEN has extended energy-saving capabilities to the bottom of the chip and circuit design,
Maximum green power consumption: When photovoltaic power generation far exceeds the load of the
and through the synergy of software and hardware, implemented power optimization strategies (such as clock
plant and feed-in revenue is low or restricted, prioritize the dispatch of energy storage systems to absorb
gating, pre-computation, logic reconfiguration, optimized fan-out, etc.) at multiple levels, including behavioral level,
excess green power and increase the proportion of self-generated and self-consumed electricity.
register-transfer level (RTL), logic level, and physical level, achieving a combined power savings of 10% to 70%.
Flexible anti-reverse flow: In scenarios where These efficient devices are further integrated into combined cooling, heating and power systems, smart distribution
reverse power supply is prohibited by grid networks and building automation platforms to form a closed-loop system of "low load on buildings + low power
connection policies, by dynamically adjusting consumption on devices + low transmission loss + no redundancy in operation". Equipment carbon reduction, thus
the charging and discharging state of energy upgrading from a single product to a full-stack green manufacturing capability covering space, systems and chips.
storage and linkage control of photovoltaic
inverter output power when necessar y,
reverse power over-limit is prevented to
ensure compliant grid connection.
Carbon reduction through management
LEC300 Microgrid Coordination Controller LAZZEN regards "Carbon reduction through management" as a key support for the implementation of Zero Carbon
plants. Through its self-developed EX energy and carbon management platform (expected to be launched in 2026),
In the practice of Zero Carbon plants, the PX Power Distribution Expert, the MX Microgrid Expert System, LAZZEN has upgraded from the traditional model that relies on manual statistics, cannot grasp energy consumption
and the LEC300 Microgrid Coordination Controller form a "device-control-platform" three-tier collaborative details in real time, and delayed analysis and optimization, to a modern energy management model featuring full-
architecture to jointly support resilient carbon reduction goals: PX focuses on the distribution side to achieve loop precise measurement, carbon emission analysis, and integrated energy-carbon optimization.
loop-level safety monitoring and sub-item energy consumption metering, providing underlying data and
execution capabilities for carbon emission accounting and precise regulation; LEC300 responds in real time to In addition, the PX Power Distribution Expert system integrates high-precision metering functions at all levels of
changes in electricity prices, loads and green power on the edge side, and dynamically implements strategies distribution nodes such as frame circuit breakers, molded case circuit breakers and miniature circuit breakers,
such as peak-valley arbitrage, demand control and green power consumption to ensure operational economy achieving full-circuit, itemized and zoned electricity consumption monitoring from the main trunk to the end, with
and low carbon emissions; MX integrates all-domain energy data at the park level, visualizing carbon metering accuracy reaching the national standard level 1 and meeting the requirements of the "Design Standard
emissions, conducting revenue analysis and operation and maintenance management to support long- for Itemized and Zoned Electricity Metering Systems for Public Buildings". The system not only supports the refined
term optimization decisions. Three systems work together to enable Zero Carbon plants to adapt flexibly to management of power loads such as air conditioning, lighting, and charging piles, but also can be extended to access
changes in the external environment while ensuring power supply safety and production continuity, and to multi-energy metering terminals such as water, gas, and heat to build a unified integrated energy database for the
achieve quantifiable, adjustable and sustainable carbon reduction paths.
plant. Thanks to the highly integrated and instrument-free design of the equipment, maintenance and replacement
costs are reduced by about 50% in later operation and maintenance.
Case Facilitating the construction of Zhengzhou Bofang Zero Carbon Plant
In terms of demand management, the system automatically implements the "non-critical" strategy (that is,
automatically offloads non-critical loads during peak load periods) through intelligent switching components, Zhengzhou Bofang Electric 's plant was previously completely dependent on municipal power supply,
dynamically optimizes maximum demand, effectively avoids transformer overload and power fines, reduces excess with high electricity bills. In response to this situation, LAZZEN led the design of an integrated Zero Carbon
contract capacity charges by an average of 4% annually, and significantly reduces hidden electricity costs. infrastructure solution, aiming to optimize electricity costs and manage carbon emissions quantitatively
through the deployment of new energy and the integration of intelligent systems while meeting energy
Relying on cloud-based monitoring and intelligent diagnostic systems, the plant significantly reduces its reliance demands.
on on-site manual inspections and promotes the upgrade of operation and maintenance work towards remote,
automated and intensive. This model not only significantly enhances the operational reliability of the energy system, The project has built a new 500kW photovoltaic power station, a 522kWh energy storage station, a 630kVA
but also brings considerable resource savings and efficiency improvements: personnel costs are reduced by 50%, transformer and four AC/DC charging stations, and fully deploy LAZZEN 's self-developed system: PX Power
equipment failure rates are reduced by 30%, and average power restoration time is shortened by 60%. Through Distribution Expert System for sub-item energy consumption and carbon emission monitoring to support
intelligent management, not only the uncertainty brought by human intervention is reduced, but also hidden carbon online intelligent operation and maintenance; MX Microgrid Expert System, based on AI prediction and
emissions resulting from power outages or energy efficiency losses are lowered. control strategies, enhances the efficiency of local photovoltaic consumption, optimizes energy storage
charging and discharging, and achieves coordinated interaction with the main grid; The LEC300 Microgrid
Operational carbon reduction Coordination Controller is responsible for low-level dispatching to ensure autonomous and efficient use
of energy. After coming into operation, the monthly electricity consumption of the plant decreased by
Based on the construction practice of the Zero Carbon plant of the Hangzhou Bay Mega Factory, LAZZEN has
effectiveness of LAZZEN's Zero Carbon plant model in small and medium-sized manufacturing scenarios.
systematically accumulated full-cycle experience from planning, implementation to operation, and deeply verified
the synergy of software and hardware products. Our self-developed refined EX energy and carbon management Zhengzhou Bofang Zero Carbon Plant facilities
system, MX Microgrid Expert System and other core tools can achieve full accounting, itemized traceability and
dynamic optimization of carbon emissions at the plant level, and deeply cover key scenarios such as manufacturing,
power distribution and energy use.
Based on this unique closed loop of "self-developed + self-built + self-used", LAZZEN can not only provide
professional Zero Carbon consulting services, but also efficiently drive the Zero Carbon factory projects of external
customers from blueprint to implementation with reusable productized Zero Carbon solutions, truly achieving one-
stop empowerment of "understanding the scenario, having the tools, and being able to deliver". In addition, for
customers with existing infrastructure or specific retrofit requirements, LAZZEN can provide modular and embedded
Zero Carbon plant solutions. The solution focuses on key aspects of Zero Carbon plant construction, such as smart
distribution, microgrid coordination, energy storage dispatch, and carbon emissions metering, and supports
independent deployment and flexible integration.
Case New Intelligent Distribution Room at Hubei University
LAZZEN helped Hubei University build a new
intelligent distribution room, avoiding information
silos and improving operation and maintenance
efficiency through integrated monitoring of
medium voltage, low voltage, transformers and
power quality. In addition, through the intelligent
framework NDW3, NDM5E, dynamic environment
software and hardware guarantee, the stable
operation of the distribution room has improved
by 3 8 % , a n d p re ve n t i ve m a i n te n a n ce h a s
increased efficiency by 90%.
Intelligent distribution room of Hubei University 630KVA transformer capacity 4 AC/DC charging stations
Governance and
Compliance
Sustainable Development Management
Corporate Governance
Risk Compliance
Business Ethics
Contributions to the United Nations
Sustainable Development Goals (SDGs)
Sustainable Development Management Stakeholders Topics of concern Communication and response
Hold earnings briefings
roduct quality and customer
P Boost business performance
LAZZEN adheres to the working policy of "Marketing-driven, product-leading, quality and efficiency improvement,
service Enhance R&D innovation
performance-driven", closely aligns with the national "dual carbon" goals, and integrates ESG work with the Investors and Shareholders Innovation-driven capabilities
actual work of each business department. We continue to deepen our ESG strategy and actively promote the
implementation of various measures to ensure that while achieving economic benefits, making greater contributions
to environmental protection and social development.
Environmental compliance
Ensure environmental
management
compliance
ESG governance structure Anti-commercial bribery and anti-
corruption
Adhere to business ethics
Government/regulatory Employ legally
Employee employment and rights
agencies Engage in social welfare
Social contribution
LAZZEN has established the ESGMT (Environmental,
Social and Governance Management Team), forming
an ESG organizational management structure
Product quality and customer Customer visits
composed of the decision-making level, management
service Improve product quality
level and executive level. Among them, the board
Customer privacy protection Handle customer feedback in a
of Directors is fully responsible for the overall Customers Innovation-driven timely manner
deployment and supervision of LAZZEN's ESG work,
promoting the concept of sustainable development Board of
throughout the entire process of our operations Decision-making Layer Directors Perform contracts in accordance
from top to bottom, and deeply integrating ESG with the law
Supply chain security
management into the business decision-making Cooperate in good faith
Anti-commercial bribery and
system. The Sustainable Development Committee Supplier Improve supply chain management
anti-corruption
leads the daily management of ESG, including systems
building an ESG management system, identifying and Management Layer ESGMT
assessing ESG risks, formulating ESG strategic plans,
reviewing ESG reports, tracking and optimizing key Ensure employee rights
mployee employment and
E Improve employee communication
ESG indicators, and coordinating internal and external
rights channels
ESG communication and information disclosure.
Employees Occupational health and safety Ensure safe production
Each functional department and production base Execution Functional Departments and
acts as an executive unit, with dedicated teams and Layer Production Bases
fixed positions to be responsible for the connection,
execution and implementation of ESG-related work. Environmental compliance Ensure environmental compliance
management Engage in social welfare
Pollutant emissions Communicate and interact with
Community Social contribution the community actively
Stakeholder communication
LAZZEN defines stakeholders as individuals and groups that have an impact on our business operations or are Analysis of important topics
affected by our operational behaviors. We attach great importance to the interests and needs of stakeholders, are
committed to maintaining close two-way communication and collaboration with all parties, standardize the ESG
information disclosure process, actively listen to all parties' opinions and suggestions, promote the scientific and Based on the communication results with various stakeholders, combined with our own business situation and
transparent nature of the company's sustainable development decisions, and ensure that key topics are effectively outstanding cases in the same industry, we conducted in-depth research on relevant provisions, including the
responded to and continuously improved. Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 17 - Sustainability Report (Trial),
the Shenzhen Stock Exchange Self-Regulatory Instructions for Listed Companies No. 3 - Sustainability Report
We have taken a series of proactive measures to respond to topics of concern to stakeholders, deeply integrating the
Preparation, and the GRI Sustainability Reporting Standards, with reference to expert opinions and suggestions. We
concept of sustainable development into business operations and strategic planning, and promoting the realization
finally determined the matrix of important topics.
of our sustainable development goals.
Analysis process of important topics
Corporate Governance
Sort out and adjust our list of important topics by referring to the sustainability reporting guidelines issued by the
Identify
Shenzhen Stock Exchange, industry development characteristics, company operating conditions, etc.
LAZZEN strictly adheres to all laws and regulations to ensure that the corporate governance structure is legal,
compliant and operates in a standardized manner. We attach great importance to information disclosure, ensuring
that the disclosed information is true, accurate and timely, and effectively safeguarding investors' right to know;
Through continuous communication and research in daily business operations, combined with the professional maintain regular communication with investors through diversified channels and continuously enhance investors'
Evaluation
experience of experts and other forms, assess the significance of each issue based on two dimensions: financial understanding and trust in the company. In addition, we adhere to Party-building leadership, give full play to the
importance and impact importance. political core role of the Party organization, and ensure that LAZZEN moves in the right direction.
Based on the assessment results of important topics, build the important topic matrix and disclose it after approval by
the board of directors.
Governance structure
Disclosure
For topics of financial importance, we disclose them in accordance with the "Governance - Strategy - Impact, Risk and
Opportunity Management - Indicators and Goals" framework. This year, we have identified four financial important In accordance with laws and regulations such as the Company Law and the Securities Law, LAZZEN continuously
topics: "Product Quality and Customer Service", "Innovation-Driven Development", "Environmental Compliance improves internal systems such as the Articles of Association, the Rules of Procedure for the Board of Directors, and
Management", and "Responding to Climate Change". the Rules of Procedure for the Shareholders' Meeting, clarifies the responsibilities, authorities and procedures of each
institution, builds a standardized organizational structure and operating mechanism, and ensures the efficient and
orderly advancement of our business decisions. During the reporting period, we optimized organizational structure
LAZZEN's 2025 important topic matrix
in line with regulatory requirements and development realities, abolished the establishment of the supervisory
Product Quality and Customer Service
board, and the audit committee of the board of directors took over the statutory powers of the original supervisory
High Occupational Health board, establishing a decision-making and operation system with the shareholders' meeting, the board of directors
Opportunities in
and Safety
Clean Technology Environmental and the management as the main structure, forming a governance system with clear rights and responsibilities and
Anti-bribery and
Anticorruption
Compliance Management Innovation-Driven standardized operation, and promoting the continuous upgrading of governance efficiency.
Tax Risk Management Pollutant Emissions Employee Recruitment and Rights
Shareholders' Meeting
Impact Importance
Data Security and Protection of
Customer Privacy Supply Chain Security
Technology Ethics
Digital Treat Small and Medium-
Responding to Climate Change
Development Sized Enterprises Equally
Stakeholder Communication
Water Resource Energy Utilization
Utilization Board of Directors
Waste Disposal
Social
Contribution Anti-Unfair Competition Employee Training and Development
Board Secretary
Due Diligence Ecosystem and Diodiversity Conservation
Rural Revitalization
Circular Economy CEO
Low High
Financial Importance
ESG honors
System
Infrastructure Marketing
Marketing System
Digital Energy and Building
International Business System
Key Project Office
Component Product Line
Medium and Low Voltage
Line
Smart Distribution Product
Mounted Device Product Line
Smart Terminal and Vehicle-
Technical System
Strategic and Financial System
Resources System
Operations and Human
GoodWe ESG Ecosystem Partner Guancha Net ESG Model Enterprise
Ecovadis Bronze Medal*
Award 2025 "Innovation Pioneer Award"
*Link: https://recognition.ecovadis.com/TdAj4kqJsEWaLTQihPsEdQ
Information disclosure
LAZZEN strictly complies with relevant laws, regulations and normative documents, and organizes
and holds shareholders' meetings in accordance with internal systems such as the Articles of LAZZEN strictly adheres to the Articles of Association, the Information Disclosure Management System and relevant
Association and Rules of Procedure for Shareholders' Meetings, and implements deliberation laws and regulations, fulfills information disclosure obligations truthfully, accurately, completely, timely and fairly,
and voting procedures. As the highest authority of LAZZEN, the main powers of the shareholders' conducts investor relations management through multiple channels, platforms and methods, and is committed
Shareholders' meeting include reviewing and approving the company's business plans and investment schemes, to improving the quality and transparency of information disclosure.
Meeting electing and replacing directors who are not employee representatives, deciding on matters During the reporting period
We ensure that shareholders and creditors of LAZZEN have equal and
related to the remuneration of directors, and reviewing and approving the work report of the timely access to information on our business operations and major
board of directors, etc. The meeting is held in a combination of on-site and online voting, strictly matters. During the reporting period, there were no false records, LAZZEN disclosed 88
implementing procedures such as recusal of related shareholders, cumulative voting, and voting misleading statements or material omissions in our information
on a per-item basis to ensure that the voting is legal and valid. announcements in compliance
disclosure work, demonstrating solid achievements in information
disclosure quality and compliance management. with regulations
During the reporting period, LAZZEN held a total of 4 shareholders' meetings and deliberated on
legitimate rights and interests of all shareholders, including minority shareholders. During the Investor relations management
reporting period, there was no situation that harmed the rights and interests of shareholders.
LAZZEN strictly complies with policies and regulations such as
the Company Law, the Securities Law, the Guidelines for Investor
Relations Management Work of Listed Companies, and the provisions
of the Articles of Association, continuously revises and improves the
The Board of Directors holds board meetings strictly in accordance with the provisions of the Investor Relations Management System, systematically conducts
Articles of Association and the Rules of Procedure for the Board of Directors, earnestly implements investor relations management work, and effectively safeguards the
the resolutions of the shareholders' meeting, standardizes the implementation of authorized legitimate rights and interests of investors.
matters, and resolutely eliminates illegal behaviors such as over-authority approval and
Board of "implementation first, approval later". The board adheres to the Company Law and other laws and Investor communication
regulations, always aims to safeguard the overall interests of LAZZEN, attaches great importance LAZZEN attaches great importance to communication with investors and always regards safeguarding investors'
Directors
to and effectively protects the legitimate rights and interests of minority shareholders. During the rights and interests as an important responsibility. To this end, we continuously optimize communication
reporting period, LAZZEN held 6 board meetings and deliberated on 68 proposals. mechanisms, actively expand communication channels, and ensure the timeliness, accuracy and transparency of
information transmission. During the reporting period, we carried out investor communication activities through
The Board of Directors consists of the Strategic Committee, the Audit Committee, the Nomination
various forms such as organizing earnings briefings, visits by small and medium-sized investors and institutional
Committee and the Compensation and Appraisal Committee, each of which effectively assists
investors to the listed company, answering investor hotlines, voluntary information disclosure, and interactive Q&A
the Board of Directors in performing its decision-making and supervisory functions. During the
exchanges to strengthen communication with investors and shareholders and safeguard shareholders' legitimate
reporting period, the specialized committees operated properly, and the meetings and resolutions
rights.
were in compliance with the relevant system requirements.
Investor communication activities in 2025
LAZZEN is committed to promoting the effectiveness and diversity of its board, taking into account ? 74 investor communication activities conducted
factors such as the industry experience, educational background, and overall quality of our board
members, to ensure that the board of directors is both effective and diverse. The current board ? 52 questions responded on the Easy Interaction platform
members have professional capabilities in finance, law, power equipment and other fields, and ? 7 times record sheet of investor relations activities released
Board all have rich industry experience. LAZZEN's board consists of nine directors, including one female
effectiveness director and three independent directors.
? 48 phone calls made
and diversity The independent directors strictly follow the "Independent Director Work System, proactively ? 1 earnings briefing held
understand LAZZEN's production and operation situation, pay attention to our development
dynamics and the standardization of operations, diligently and responsibly perform their Protect the interests of small and medium-sized investors
duties and obligations, make reasonable suggestions on matters related to our internal control,
management of raised funds, etc., and express independent opinions prudently and objectively LAZZEN has taken the initiative to maintain close communication with the Shenzhen Stock Exchange, study
in order to safeguard the overall interests of LAZZEN, especially the rights and interests of small regulatory requirements in depth, and participate in discussion and research meetings of listed companies organized
and medium-sized investors, and promote the continuous improvement of LAZZEN's governance by the Small and Medium Investors Service Center, focusing on learning the methods of standardized operation
structure and the standardization of its operation and management. of listed companies and communication with small and medium investors. At the same time, we maintained
active interaction with small and medium-sized investors through the Easy Interaction platform to ensure smooth
information communication channels and effectively protect the interests of small and medium-sized investors.
Strengthening the foundation through Party building Party building culture construction
LAZZEN deeply integrates Party building into the ESG development system, leading the high-quality and sustainable LAZZEN has always insisted on integrating Party organization building with corporate culture building, bringing
development of the enterprise with high-quality Party building. In 2025, we continued to improve organizational together employees and Party members, and by focusing on political guidance, organizational cohesion, and role
construction, create distinctive brands, innovate working models, deepen the integration of Party and enterprise, play, we have continuously strengthened ideological consensus, gathered the strength to forge ahead, effectively
and promote the resonance of Party building with production and operation, employee development, green transformed the advantages of Party building into development advantages, and promoted the steady and far-
transformation and other work, building a solid political foundation and organizational guarantee for the company's reaching high-quality development of the enterprise.
ESG development. We are committed to building a Party member activity room with LAZZEN characteristics. While consolidating
the Party building work position and strengthening the vanguard role of Party members, we promote the deep
Improve the Party organization system
integration of Party building and business, thereby consolidating the development synergy and enhancing the
comprehensive competitiveness of the enterprise; we are committed to building the "Liangfeng" Party building
LAZZEN continued to improve Party organization system. In August 2025, under the guidance of the superior brand of Party member pioneers, product pioneers, enterprise pioneers and industry pioneers, focusing on the
Party organization, the Party Branch Committee of Haiyan LAZZEN was officially established. The General Branch urgent needs of employees, the pain points of enterprise development and the weak links in work, and actively
Committee of Shanghai LAZZEN of the Communist Party of China is established at the headquarters, with three Party responding to the voices of employees.
branches under it, forming a pattern of coordinated Party building work from top to bottom.
? "Liangfeng" Home: Equipped with a tea area, a table tennis room, a basketball court, etc., we provide
places for Party members and employees to rest and strengthen their bodies and minds.
? Party Member Activity Room
? "Liangfeng" Screening room: For Party members and the masses within the enterprise to
study the spirit of the Party and red films, broadening the ways of Party building learning.
? "Liangfeng" Academy: Provides functions such as party affairs training, business training, skills ? "Liangfeng" Exhibition Hall: It showcases the corporate culture and Party building of LAZZEN, reflects our strength
improvement, etc., creates a red learning atmosphere, and promotes the development of Party branches. in building a "future factory", and serves as an effective carrier for ideological education and publicity activities.
Risk Compliance An internal control management system
Internal control Specific content
management
LAZZEN attaches great importance to compliance management, internal control management, risk management
and tax management, continuously improves the supporting management system and operational procedures, and The assurance of effective implementation of internal control includes daily oversight and
comprehensively enhances the enterprise's risk prevention and compliance control capabilities. Monitoring special oversight, with management responsible for ongoing daily oversight, internal audit
responsible for targeted special assessment, and third-party assessment.
Compliance management Information and The carriers for the implementation of internal control include information quality,
communication communication systems, information systems, and anti-fraud mechanisms.
LAZZEN strictly adheres to relevant laws and regulations such as the Company Law, the Securities Law, and The means of implementing internal control include incompatible job separation,
the Accounting Law, continuously revises and improves internal systems such as the Compliance Obligation Control activities authorization approval control, accounting system control, property protection control,
Management Procedure, the Compliance Evaluation Management Procedure, and the Intellectual Property budget control, operational analysis control, performance evaluation control, etc.
Compliance Management Measures, reasonably guarantees the legal and compliant operation and management of
the company, the safety of assets, and ensures the authenticity and completeness of financial reports and related The basis for implementing internal controls, including objective setting, risk identification,
Risk assessment
information. Adapt to the dynamic changes of the external environment and continuously improve the internal risk analysis, and risk response.
management level.
Control The foundation of the internal control system includes governance structure, organizational
To meet the requirements of risk control and system audit, LAZZEN reviews and updates various laws, regulations, environment setup, authority allocation, human resource policy, corporate culture, etc.
rules and regulations, policy documents and related standards every year. During the reporting period, we added the
review of laws, regulations and systems related to import and export control.
Risk control
Regular mechanism System revision
LAZZEN establishes a full-process system for identifying, analyzing and evaluating risks and opportunities, and
Annual review and update of laws, regulations, The articles of association and related takes countermeasures to strengthen internal control and improve the management and operation level and risk
systems and policy documents related to RoHS, management systems have been revised prevention capacity of the company.
intellectual property, information security, accordingly in accordance with the revised
EHS (Environment, Health, Safety), and energy Company Law implemented in 2025. Risk governance
modules.
LAZZEN strictly adheres to relevant laws and regulations and continuously improves the risk prevention and control
and compliance management mechanism. In 2025, we completed the revision of systems such as Case Management
Measures, Quality Risk Management Plan, and Legal Guidelines for Debt Collection and Recovery, and added
Internal control Electronic Seal Management Measures to continuously enhance risk governance and compliance control capabilities.
To further strengthen the construction of the risk management system, we developed the Risk and Opportunity
Management Procedure and integrated and optimized it with the Enterprise Risk Management System in 2025 to
In accordance with the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock further improve the risk control system.
Exchange, LAZZEN adheres to the basic principles of internal control, combines the actual operating conditions of
the company, focuses on management blind spots and pain points in business processes, continuously optimizes risk At the same time, LAZZEN continues to improve our risk management governance structure, clarifies job
control management processes and systems, and builds a sound and effectively operating internal control system. responsibilities at all levels, builds the "three lines of defense" for risk prevention, establishes a comprehensive,
centralized and unified audit supervision network to effectively prevent major risk events and provides governance
LAZZEN has improved internal control management system in accordance with the requirements of the Basic Norms guarantees for the implementation of our strategy and sustainable operation.
for Enterprise Internal Control to ensure that its operation and management are legal and compliant, and its assets
are safe and controllable. We regularly assess the effectiveness of the internal control system, disclose the internal The "Three lines of defense" for risk prevention
control evaluation reports truthfully, and continuously iterate and improve the internal control management system.
During the reporting period, we had no material or significant deficiencies in our internal control.
The first line The second line The third Line of
of defense of defense defense
All business Risk Management Audit
departments Committee Department
Company risk management system architecture
Potential
Impact
Risk types Risk description financial Risk management measures
Management cycle
Responsibilities and authorities implications
structure
Product quality and non-
compliance with RoHS can Short-
egular high-level quality monthly meetings;
R
he committee consists of one director, one executive secretary and seven risk committee members
T affect LAZZEN's reputation and term/ Operating costs
Quality RoHS Assess the risks of systems such as
(Information Security Risk Committee member, Business Risk Committee member, Legal Risk result in direct economic losses medium- increase
risk management quality through systems,
Committee member, Supply Chain Risk Committee member, Labor Relations Risk Committee member, such as product rework, recalls, term/long- Revenue decline
internal audits, and management reviews.
Risk Management Tax and Finance Risk Committee member, Intellectual Property Committee member). compliance fines, and customer term
Committee claims
s the highest decision-making body for risk management, it is responsible for reviewing LAZZEN 's
A
risk management system and framework, deliberating on major risk matters, and deciding on risk
Information security incidents Multiple internal self-examinations in
response strategies, etc. Short-
such as data breaches, resulting response to repeated letters from software
term/
Information in compliance penalties, Operating costs vendors claiming that LAZZEN uses pirated
medium-
security risks customer/partner claims, increase software;
s the risk management department, they are responsible for the daily identification, assessment
A term/long-
business disruption losses, and Implement meeting resolutions by issuing
Business Units and reporting of risks within their business area, and formulate and implement targeted risk response term
emergency response costs systems and signing documents.
plans.
Background checks on candidates;
s the risk management supervision and evaluation department, it is responsible for conducting
A Causing labor disputes, resulting Update the employee handbook in a timely
independent audits and supervision of the operation of LAZZEN 's risk management system and the Risks of labor Operating costs
in economic and reputational Short-term manner;
Audit Department implementation of risk control measures; proposeds supervision and improvement suggestions, tracks disputes increase
damage Properly handle changes to the subject of the
the closed-loop of risk rectification, and ensure the standardized implementation of risk management labor contract and negotiate termination.
work.
stablish an intellectual property risk
E
assessment process, patent risk levels and
Triggering intellectual response strategies through an intellectual
Risk identification and management property disputes, resulting in property compliance management system;
compensation for infringement, Medium Operating costs Promote the implementation of patent risk
Intellectual
LAZZEN continuously identifies and controls risks in key areas, and tracks and synchronizes them through litigation costs, waste of and long- increase assessment actions through the IPD process;
property risks
R&D investment, damage to term Revenue decline Review the effectiveness of risk management
performance assessment, meeting follow-up, system processes, etc., to ensure the formulation and implementation brand reputation and market actions and make timely improvements
of risk response measures. In addition, in accordance with the Basic Norms for Enterprise Internal Control and its competitiveness through internal and external audits of
supporting guidelines, LAZZEN compiles an internal control risk matrix based on its actual situation and conducts the intellectual property compliance
regular risk identification, assessment, supervision, response and improvement. For ESG risks related to business management system.
operations, we take actions such as sorting out risk inventories and conducting materiality assessments to clarify the
impact of risks and response measures, and integrate ESG risk management into the corporate governance system.
Internal audit
LAZZEN, in collaboration with the Intellectual Property Department, updates legal education content monthly in
the "Law · Knowledge Zero Distance" column on the OA platform, organizes long-term legal advisors to conduct LAZZEN has established a risk-oriented audit framework based on business cycles and key elements of our
special training on job responsibilities and risk prevention for directors, supervisors and senior management, operations, making full use of existing audit resources to conduct audit checks on key risks in the business. We have
comprehensively strengthens the compliance awareness and risk prevention capabilities of all employees, promotes established the Internal Audit System and the Departure Audit Management System, aiming to enhance management
employees to master the risk management process proficiently, and continuously improves the overall risk efficiency, prevent business risks, and ensure the safety of our assets and its sustainable and healthy development.
governance level of the company.
Potential
Impact 01 02 03 04
Risk types Risk description financial Risk management measures
cycle
implications
Supervise the Evaluate the Check the security Raise the risk
re-review of customer credit qualifications,
P compliance of effectiveness and and integrity of the awareness of all
Customers (especially smart
payment terms, order release, commercial bill business operations efficiency of business enterprise's assets and employees in the
power distribution direct supply
receipt, etc. through organizations such as the and prevent violations operations and reduce unnecessary enterprise and reduce
projects) have a higher risk of Medium
Customer Operating costs Cash Flow Management Committee;
payment risk
debt collection, which can lead to and long-
increase Non-litigious collection by business, legal and
from causing damage provide objective waste and loss potential risks in daily
bad debts and increase the risk of term to business assets and and impartial work
attorneys during the process;
litigation, generating additional
Risk management through post-event reputation statements to the
costs for rights protection
proceedings, etc., to reduce bad debt risk. board of directors and
management
Internal audit framework
Tax administration
Business cycle Audit focus areas LAZZEN has always adhered to the principle of paying taxes in accordance with the law. To strengthen tax
administration, ensure legal business operations, and fulfill the commitment of honest tax payment, we have
Product prices, special offer management, credit lines formulated the Tax Administration System to clarify the responsibilities and authorities of each department
Sales and collection business and relevant personnel in tax administration, and standardize the operation procedures of key links such as tax
Sales orders, freight charges, reverse logistics registration, tax declaration, invoice use and management, tax planning and file management.
cycle
Accounts receivable, other receivables
In the routine audit of financial internal control in 2025, the spot-check of tax declaration materials was
simultaneously covered, and no tax compliance issues were found, effectively ensuring that daily tax handling
Supplier management operations were standardized and orderly.
Purchase and payment business
Purchase Price, purchase allocation ratio Tax risk response measures
cycle
Accounts payable
Measures category Specific content
Financial budget Establish a comprehensive tax administration system with clear management
processes and job responsibilities, implement dynamic risk assessment and
Finance (monetary funds cycle) Monetary funds, notes receivable
develop corresponding risk control measures.
Raised funds
Adhere to tax payment in accordance with the law, ensure that tax information is
true and complete, tax declaration and payment are timely and accurate, strictly
Real estate, production equipment, office equipment Improve systems and fulfill tax information disclosure obligations, and actively cooperate with tax
Items (production and inventory compliance building supervision work.
Inventory, molds, low-value consumables
cycle) Within the existing tax administration framework, we optimized the key points
Scrap
of daily operations in the input tax deduction link in 2025 in accordance with
the relevant policy adjustments of the current year; and worked with external
professional institutions to complete the group related-party transaction pricing
Production safety
compliance report and standardize related-party transaction tax operations.
People (human resources and Payroll accounting
payroll cycle) Employee benefits Continuously track and study national tax policies, regularly conduct internal
tax training, promote deep integration of business, finance and taxation, and
Labor employment optimize tax-related business processes.
Strengthen the professional capabilities of the tax team to achieve rapid
Respond to the policy and
adaptation to policy changes and compliance implementation.
enhance capabilities
I n 2025, two internal tax policy interpretation meetings were organized in
response to changes in tax policies, covering a total of 50 people from core
positions in finance and business. There were no operational errors in tax
declaration throughout the year.
U se digital tools to enhance tax administration transparency and reduce
compliance management costs.
Optimize efficiency
through digital risk control Regularly conduct self-audits of tax risks and work with professional consulting
agencies to enhance compliance reviews to ensure that tax operations are
standardized and secure.
Through institutional improvement, technological empowerment and personnel
Build a long-term capacity building, strive to achieve regularized and standardized tax risk
mechanism management, form a sustainable tax risk prevention and control mechanism, and
provide a solid guarantee for the stable development of the business.
Business Ethics LAZZEN continues to strengthen anti-corruption risk management through measures such as improving institutional
construction and strengthening supervision mechanisms, and standardizing business operation processes, to create
a strong deterrent with severe punitive measures, and to build a full-process transparent management system
LAZZEN upholds a high level of social responsibility and professional ethics, adopts a zero-tolerance attitude covering pre-event prevention, in-event supervision, and post-event handling, creating a good organizational
towards corruption, strictly enforces anti-corruption policies, and ensures the integrity and transparency of the atmosphere of "not wanting to be corrupt, not being able to be corrupt, and not daring to be corrupt".
our operations. We firmly oppose any form of monopolistic behavior and unfair competition, adhere to market
LAZZEN attaches great importance to complaints and reports, formulates strict handling procedures and stipulates
competition rules, and maintain a fair and just market environment.
the timeliness of handling, and also establishes a protection mechanism for the complainants and reporters.
Anti-corruption Corporate whole-process anti-corruption management system
LAZZEN actively responds to the national anti-corruption policy, formulates the Integrity Management Measures,
Unwilling to corrupt (thought Unable to corrupt (due to No dare to corrupt (deterrent
establishes and improves the integrity management system, sets up the Sunshine Management Committee Stages
guidance) institutional constraints) punishment)
to manage the behavioral norms, integrity and self-discipline of all employees and related business activities,
investigates and handles illegal and non-compliant and acts that harm the interests of us, and prevents fraud and Culture of Integrity Set rules Deterrence and deterrence
corruption, so as to create a good business environment and ensure the company's steady development. S etting rules: Defining the red line of stablish a main body
E egal education: Lectures on
L
conduct responsible for integrity integrity cases and learning from
With integrity culture and loyalty and self-discipline as the core orientation, LAZZEN aims to build a clean and upright S electing and employing people: management: Sunshine economic criminals
business environment through institutional building, training and education, and supervision and inspection, to Background checks for sensitive Business Committee ublicity and notification:
P
promote the stable development of the company. We signed Integrity Commitment with all employees, organized positions stablish a set of integrity
E Internal publicity and notification
employees to participate in anti-corruption training and education, advocated employees to adhere to the work style O rganizational atmosphere: Leading management system norms: of typical cases and organization
by example by management cadres Integrity Management of learning
of integrity and honesty, and ensured that all business activities of the company operate in the open. Prevention
T raining and education: Regularly Measures
in advance
conducting integrity and legal eaken the influence of
W
Regarding the management of anti-corruption behavior of partners and suppliers, LAZZEN adheres to the education individuals in business
cooperative philosophy of integrity, transparency and openness, establishes cooperation mechanisms with partners Making contracts: Signing the decisions: Business process
and suppliers, and firmly resists commercial bribery. To ensure the compliance and integrity of business activities, Integrity Commitment and Integrity educe the control of
R
LAZZEN signs integrity cooperation agreements with partners, specifies email information for reporting acceptance Agreement individuals in business
I ntegrity initiative: Issue integrity execution: Business
in the agreements, conducts periodic inspections aimed at consolidating the foundation of honest cooperation
initiative letters before New Year's informatization
between the two sides, and organizes suppliers to participate in anti-commercial bribery training to cultivate their Day, Spring Festival and other festivals
business ethics and compliance awareness.
Proactive reporting Process self-check Inspection Monitoring
Proactive reporting for receiving cash System check: Data anomaly Audit Inspection: Regular/
Management dimension Content description gifts alarm function embedded in irregular integrity inspection by
roactive reporting for participating
P the information system the Audit Department
Top organization Sunshine Management Committee In-process
in activities usiness self-check: Business
B igh-level communication:
H
control
roactive reporting for conflicts of
P departments conduct regular regular/irregular communication
interest or irregular integrity checks between committee members
Core system Integrity Management Measures
Proactive reporting for relationships on their own and partners
with relatives and friends to cooperate ob rotation mechanism:
J
Internal: Employees with background checks Sensitive positions are rotated
Objects of management
External: Partners, suppliers, and other external affiliates regularly
Internal: Employee Handbook and Integrity Commitment
Control measures External: Integrity Cooperation Agreement Complaints and reports Supervision and inspection Accountability and punishment
All-Staff training and presentation Audit mailbox receives internal and Audit investigation: Internal Multi-level accountability:
external complaints and reports investigation as appointed by Personal responsibility,
Internal reporting: OA system Conflict of Interest Reporting unshine Management Committee
S the director of the committee management responsibility,
Supervision and inspection External oversight: Audit Mailbox
members receive internal and xternal investigation:
E leadership responsibility
Regular audits
Post-event external complaints and reports Investigation by anti-fraud andling and punishment:
H
oversight professional lawyers or public Notice, dismissal, punishment,
security investigation compensation for losses
Commission an external expert investigation (independent verification for egal liability: Transfer to judicial
L
Bottom-line measures
major or complex issues) authorities and assume legal
liability
Anti-unfair competition
Channels for receiving Timeliness of handling complaints and reports LAZZEN adheres to the business philosophy of legality and compliance, strictly abides by the Anti-Monopoly Law
complaints and reports and the Anti-Unfair Competition Law, standardizes market competition behaviors, resolutely eliminates false
Upon receiving a report, the company
?Board of Directors' written undertakes to complete the investigation advertising, commercial bribery, infringement of trade secrets and other illegal acts, and maintains a fair and
and oral instructions within one month, provide feedback on orderly business order. In 2025, we revised the content of confidential information management in the Trade Secret
? ?Designated email: audit@lazzen.com the investigation results to the Sunshine Management Procedure, strengthened the identification and control of anti-unfair competition risks, and ensured a
Management Committee and the person clean and healthy business environment. During the reporting period, we did not have any monopolistic and unfair
reported, and issue an audit investigation competition violations or illegal incidents.
report. The audit investigation period shall
LAZZEN actively maintains a fair and just market environment, promotes positive interaction with partners, jointly
not exceed three months.
builds a healthy and orderly market ecosystem, and lays a solid foundation for long-term stable development.
We signed cooperation agreements with dealers, clearly stipulating that both parties must abide by the market
maintenance provisions of the Dealer Agreement and the LAZZEN Market Regulation Management Measures, and
jointly maintain the normal competitive order of the market. During the reporting period, the signing rate of the
Complaint and whistleblower protection mechanism company's "Dealer Agreement" was 100%.
Intellectual Property Risk Management Procedures for the identification and control
Protective measures Specific Content of trademark infringement and unfair competition
The Audit Department has an obligation to keep confidential the information of complainants
Obligation to keep and informants. According to the 'Internal Audit System', if an auditor violates the principle of
information confidential confidentiality and discloses the information of a complainant or informant, LAZZEN has the right Monthly ducument numbers, trademark information and market monitoring
to deal with and punish them.
We implement the principle of minimizing the scope of knowledge of complaints and reports,
Minimize the scope of Where any trademark infringement or unfair competition against us is identified, a
ensuring that the investigation process of complaints and reports is not public and is known only
knowledge temporary emergency response team will be established to conduct a risk assessment
to essential personnel to prevent the spread of information.
We support anonymous complaints and reports, and take the same investigation and handling
Support anonymous
methods for anonymous reports as for real-name reports to safeguard the rights and interests of
reporting
the reporters. Develop a contingency plan for risk prevention
Anti-corruption management indicators
Decisions on measures to be taken are made by the Minister of Operations
Standardization and Intellectual Property
Disclosures Unit 2025
Number of corruption lawsuits filed and concluded by regulators against issuers or their
employees
piece 0
Number of anti-corruption whistleblowing incidents piece 1
Low-risk and medium-risk trademarks: Risk warning to the head of the
Total number of directors covered by anti-commercial bribery and anti-corruption training persons 9 secondary organization of the trademark use requirement
Proportion of directors covered by anti-commercial bribery and anti-corruption training % 100
Total number of management personnel covered by anti-commercial bribery and anti-
High-risk trademark: Head of a level 1 organization with a risk
corruption training
persons 70 warning to the need for trademark application
Proportion of management personnel covered by anti-commercial bribery and anti-
% 100
corruption training
Total number of employees covered by anti-commercial bribery and anti-corruption training persons 1,535
Proportion of employees covered by anti-commercial bribery and anti-corruption training % 63
Innovation
and Quality
Innovation-Driven Development
Intelligence Ecosystem Products
Digital Transformation
Product Quality
Customer Service
Information Security and Customer Privacy Protection
Contributions to the United Nations
Sustainable Development Goals (SDGs)
Innovation-Driven Development Risks Risk description Response measures
?Lay out various new technologies in advance, accurately identify
LAZZEN adheres to innovation-driven development, builds core competitiveness through technological innovation, In the context of rapidly changing global
new technology points in the industry, including high-voltage
builds an industry-leading integrated R&D platform by improving the R&D governance system and formulating Risk of product technology and high breaking capacity technology
situations and increasing customer
technology
medium- and long-term R&D strategic plans, continuously increases R&D investment, builds high-level professional iteration
demands, the company faces the risk of its
?Organize technical reserves for products targeting overseas
R&D teams, and builds a full-chain management and risk prevention and control system for intellectual property. existing technologies being replaced
markets and promote the application of solid-state technology,
We conduct forward-looking layout of core technologies, advance technological iteration and product development, AI technology, etc
promote the efficient transformation of scientific and technological achievements, and empower product technology
upgrades.
?Take the initiative to respond to customers' demands for new
As customers continue to upgrade and
products, lay out technology and product planning in advance,
Research and development management
expand their own systems, their demand for
iterate existing technologies and carry out various product
new products becomes increasingly urgent.
research and development in advance
Risk of The rapidly changing market demands
change in require companies to have agile response
?Focus on high-voltage product technology, high breaking
demand capabilities to ensure that they are always
Governance in step with the development of their
capacity technology and overseas market adaptation technology
reserves, continuously increase investment in research and
customers' systems and provide precise and
development innovation, and push key technologies to industry-
timely solutions
LAZZEN builds a comprehensive and efficient R&D innovation governance system, leads business development leading levels
with a forward-looking R&D strategy, promotes customized innovation around customer needs, and continuously
strengthens core competitiveness. We have established multiple R&D institutions based on different R&D fields and In response to the growing business
key directions, focusing on conducting cutting-edge research and product development in each technology field, Risk of demands of the company, the original
?A mega factory was built in Haiyan, Jiaxing, and the entire
regularly evaluating and optimizing research directions, deepening cross-institutional collaboration, accelerating the insufficient production base in Pudong, Shanghai, is no
relocation was completed in 2025
transformation and implementation of innovation achievements, and laying a solid foundation for our sustainable capacity longer capable of meeting the production
demands of customers' products
innovative development.
The ITMT (Integrated Technology Management Team) is responsible for building our competitiveness in public and
cutting-edge technologies by organizing technology roadmap planning, technology investment decision-making, LAZZEN formulates a three-year R&D strategic plan and dynamically optimizes and adjusts it in light of actual
project initiation and review, etc., so as to enhance the technological competitiveness of products and form a leading business conditions. From 2026 to 2028, we will focus on four strategic layouts: technological innovation, market
product advantage. expansion, talent development, and international cooperation. We will continue to innovate and develop in key
areas such as high-voltage product technology, high breaking capacity technology, technology reserves suitable for
The research and development assessment indicators set by LAZZEN cover the accuracy and foresight of industry overseas market product requirements, intelligent technology application, and information technology application,
and customer demand analysis, competitor and patent analysis, frontier technology analysis, and technology and comprehensively enhance our R&D strength and core technology level.
strategy and technology panorama analysis reports for the next three to five years of technology roadmap planning.
At the same time, we assess the implementation rate, achievement rate and migration rate of technology planning Innovation-driven three-year development strategy
output projects to ensure that planning projects can be smoothly implemented, completed on time and ultimately
applied to products.
High-voltage product technology
Strategy
Industry voltage level breakthrough (DC2000+, AC3300V) cost reduction trend
To precisely match the current and potential needs of customers, LAZZEN delves deeply into various application
Voltage boosts are expected to be fully rolled out in the market in 1-2 years
scenarios and initiates strategic to execution (DSTE) planning for the next year and the next three years in the
fourth quarter of each year. Through the "Five Views" method of market insight, we sort out the list of opportunity Previous years' technology trends continue
points, make forward-looking judgments on new technological trends in the industry, and accurately identify
our own technological shortcomings and potential risks. And formulate practical key tasks and corresponding
countermeasures to ensure the efficient implementation and effective execution of the strategy.
High breaking performance technology
Higher performance requirements for high-voltage and high-current products
Product safety and reliability
Past technological trends continue
Technical reserves for product requirements in overseas markets Impact, risk and opportunity management
High requirements for products in overseas market standards, such as UL standards for electrical Research platform construction
life, breaking capacity and temperature rise UL1077, UL98, UL489
LAZZEN builds industry-leading R&D platforms, and through the establishment of an industry-university-research
Future product consolidation lays the technical reserve for cost advantage cooperation system and the strengthening of an open innovation ecosystem such as postdoctoral workstations,
realizing resource sharing and forms a standardized, platform-based, and digitalized R&D support system to
comprehensively enhance R&D efficiency and core technology competitiveness, providing a solid guarantee for
product innovation and technological leadership.
Application of intelligent technology
LAZZEN has established a specialized simulation technology platform in the field of low-voltage electrical appliances.
Relying on simulation computing tools and software, we conduct virtual prototype function evaluation of product 3D
Low-voltage electrical appliances, computing-electricity coordination, intelligent control application
models to facilitate product forward design and form a closed-loop forward design method. The platform supports
Product intelligent upgrade, adaptive scenarios, AI empowerment, platformization and ecologicalization complex working condition assessment, responds quickly to market demands, and currently has multi-scenario
Build smart office, Good House and other smart and seamless scenarios with people-oriented simulation analysis capabilities such as high voltage, high breaking capacity, and temperature rise, and continues to
expand in assessment dimensions and analysis depth, building an increasingly complete and industry-leading virtual
prototype assessment capability.
Common technology module (CBB) LAZZEN series product platform Research and development tools
Application of information technology
Structural CBB modules for Set up a three-disconnection Under the Integrated Product
Information technology: Mass sensing, communication Internet of Things, intelligent controllability mechanisms, arc extinguishing, and one-connection product Development (IPD) process
In line with the transformation of the power industry, grid interconnection drawer bases, and accessories platform. The framework framework, more than 800
were built to reduce repetitive product is intelligent, with soft preferred material libraries and
Green carbon energy conservation, digital and information-based energy
development and improve R&D connection optimization and low 57 types of technical requirement
efficiency through CBB sharing power consumption; molded libraries were established
and reuse. shell products reduce power through integrated secondary
consumption; micro-break development, enabling various
Three Strategic layouts products achieve low moment of knowledge bases to serve rapid
inertia mechanisms; contactor design calls and increasing R&D
products ensure the reliability of efficiency by 30%.
Strategy1 Strategy2 Strategy3 contact conduction and action.
Smart Living Smart Power New Energy Industry-university-research collaboration
Distribution
Focusing on the smart living Focusing on the intelligent Focusing on the new energy LAZZEN has established an industry-university-research cooperation system driven by both technological
industry, we put forward the power distribution industry, industry, including wind power, breakthroughs and talent cultivation, focusing on areas such as low-voltage electrical appliances, new energy,
concept of living in a quality we provide a complete set of photovoltaic, energy storage, and intelligent power distribution to achieve rapid industrialization of technological achievements. The overall
home, featuring intelligent and solutions for the integration of new energy vehicles and other coordination of our industry-university-research cooperation is carried out by the human resources department, the
unobtrusive experience. power distribution products. fields, we have maintained research co-creation projects are mainly operated by ITMT, and the corresponding field Mozi experts and the head of
steady growth. the postdoctoral workstation work together.
Institution Research Collaboration Help in Cultivation Students
breakthrough
Technical
Grant
Scholarship/
joint training
Elite talent
Open Day
sharing
Technical
project
Research
base
Training
Business value
Club
Brand influence
Attracting talent
Construction of the R&D team Indicators and goals
LAZZEN attaches great importance to the team building of R&D talents, recruits industry elites, and builds a learning Data performance
organization. We have established the LAZZEN Talent Development Center, which includes the Edison Academy,
the Pangu Academy, the Panshi Academy, the Ganjiang Academy and the Lean Academy, to continuously match the
Disclosures Units 2025
job competency requirements and facilitate the growth and development of employees. At the same time, three
specialized groups have been established for R&D personnel, covering structure, electromagnetism and thermology.
Research and development investment amount CNY 10,000 33,379.09
A total of 24 professional sharing sessions were held to continuously strengthen professional knowledge reserves,
improve technical skills, and provide strong support for achieving work goals efficiently. Proportion of research and development
% 7.44
investment to business income
Number of R&D personnel persons 657
Proportion of R&D personnel % 25.79
Key honors
Edison Academy Professional Sharing
Research incentives
Second prize in the Xiongan Near-Zero Carbon
Gold Award of German iF Design Award 2025 Shanghai Design Innovation Center 2025-2027
Building Technology Application Competition
LAZZEN fully stimulates the innovation vitality and work enthusiasm of its employees, promotes technological
progress and business development, builds a good innovation culture that encourages exploration, values innovation
and allows trial and error through systems and mechanisms such as the Technology Innovation Award Selection
System, and sets up key position allowances to encourage employees to take on responsibilities and forge ahead,
injecting internal impetus into our continuous technological innovation and high-quality development.
It aims to reward For teams that To encourage Mozi
teams or individuals perform exceptionally experts to build a
who have achieved well in major technical family of
significant development and professional teams, Demonstration Project of Key Technology
Recognition of high-tech transformation China IDC Industry Innovation Technology and
Research and Application of PEDF Building
technological implementation drive the improvement projects in Shanghai
Direct Current Power Distribution System
Product Award 2025
innovation projects in the fields of technical position
breakthroughs in the of product, marketing, engineers' capabilities,
product development technology, and inspire
process and accelerate procurement, professional position
product renewal. manufacturing, engineers to develop
functionality, etc. towards Mozi experts.
Technology Innovation Gold Project Award Mozi Expert Allowance
Award Second Prize of Science and Technology Award Bronze Award in the Artificial Intelligence
PEDF Demonstration Project - GoodWe Zero
of China Institute of Communications - key Track of the Fusion Innovation and
technologies and equipment for high-precision Carbon Cabin Development Professional Competition
Incentives for research projects
energy metering and control of 5G base stations
Intellectual property protection During the reporting period
LAZZEN establishes an intellectual property management system and conducts intellectual property management
work in accordance with the requirements of the Enterprise Intellectual Property Compliance Management System we conducted 11 training sessions and other activities on intellectual property protection,
(GB/T 29490-2023), and incorporates intellectual property management into the scope of our strategic management.
We implement systematic and standardized management of intellectual property policy objectives, resource three of which were mainly targeted at R&D personnel,
management, basic management, implementation and operation, and review and improvement, and formulate covering approximately 600 people.
systems such as the Intellectual Property Management Manual, Intellectual Property Management Procedure, and
Intellectual Property Risk Management Procedure to form a management mechanism covering the entire life cycle
of intellectual property creation, application, protection and management. We have obtained the certification of the
Intellectual Property Compliance Management System, continuously maintain the effective operation of the system,
and complete internal audits and accept supervision audits as required every year.
Disclosures 2025
LAZZEN conducts an annual self-inspection of intellectual property compliance to
identify and address intellectual property risks in advance. During the reporting
Number of invention patents applied to the main business 404
period, we continuously optimized our intellectual property management system,
improved the intellectual property management mechanism for strategic-level
projects, broadened the scope of patent application subjects, encouraged the Number of patent applications for invention during the reporting period 159
manufacturing process to apply for patents around technological achievements
such as process improvement, equipment optimization and efficiency enhancement, Number of invention patents granted during the reporting period 56
strengthened the management of patent information confidentiality, strengthened
the security control of technical secret materials, and optimized the evaluation rules
Number of new patents granted during the reporting period 379
for the technological innovation award, further improving the standardization and
systematicness of our intellectual property management.
Number of patents held 2,016
LAZZEN attaches great importance to its own intellectual property protection
work. We acquire suspected patent infringement information through intellectual
Number of trademark and word registrations held 731
property competition analysis, competitor analysis, patent monitoring, etc. We
acquire suspected trademark infringement clues through monthly active monitoring GB/T 29490-2023 Intellectual
of trademarks and business names, passive channels of clue collection, overseas Property Compliance Number of software copyrights held 107
trademark monitoring of the intellectual property protection center, intellectual Management System Certification
Certificate
property customs filing, etc. Annual number of new patent applications 572
Early warning and risk assessment of intellectual property
Patent risk assessment
Patent risk management for R&D projects：Conduct patent risk assessment, incorporate the review of
risk response measures into the technical review, achieve timely problem closure, prohibit projects with
patent risks from proceeding to the next stage, and increase the frequency of assessment based on the
importance of the project
Regular patent early warning assessment:Use a patent search database to automatically obtain and
evaluate newly published patents in key areas of interest and technical fields on a regular basis
Trademark risk assessment
Embed the use risk assessment in the assessment process for new trademark applications, alert different
risk levels to different levels of responsible persons, and then update the use risk assessment conclusions
and alert them simultaneously based on changes in the review progress, conclusion, etc. of the trademark
application
Intelligence Ecosystem Products Expand smart microgrids and Zero Carbon operations
On the basis of ensuring reliable power supply and distribution, we expand our capacity in microgrid
As a leading enterprise in the high-end market of low-voltage electrical appliances in China, LAZZEN focuses on collaboration and green energy consumption. Through integrated regulation of source-grid-load-
the digital upgrade of the industry and the development needs of the national "dual carbon" strategy. Through storage systems, we provide our cucstomers with support such as multi-energy complementarity
the upgrading of intelligent and digital products, we continuously launch high-end solutions suitable for diverse optimization and demand response strategies for households, drive the energy consumption system
scenarios such as new energy, intelligent computing centers, intelligent buildings, infrastructure, electricity to upgrade from "passive power supply" to "active energy consumption management", and fully
IoT (Internet of Things), and new energy vehicles. We steadily advance the expansion of key customers in the unleash the carbon reduction value of distributed green electricity.
industry and the creation of model projects. At the same time, supported by sustained high R&D investment, we
drive the enterprise to transform from a traditional low-voltage electrical appliance manufacturer to an expert in Expand energy efficiency optimization and low-carbon management
smart electrical solutions, and inject the LAZZEN power into industrial energy transition and social low-carbon
On the basis of ensuring the safe operation of distribution systems, we expand energy efficiency
development through all-round technological innovation and scenario-based solutions.
optimization and low-carbon management capabilities. By continuously collecting and analyzing
energy consumption data, we provide customers with support such as energy consumption
Smart power distribution structure analysis and energy-saving transformation assessment, promote the upgrade of
distribution systems from "electricity consumption management" to "energy efficiency and energy
carbon management", and fully release the carbon reduction value on the distribution side.
Smart distribution has become key infrastructure supporting energy transition, safe electricity use and energy
efficiency improvement against the backdrop of the deepening of the national "dual carbon" goals, the
comprehensive advancement of new power system construction and the accelerated implementation of energy Case Load Identification Project
conservation and carbon reduction transformation in key industries. Taking smart distribution components as
the core foundation, with safety, efficiency and carbon reduction as the core goals, and integrating cutting-edge
In collective living scenarios such as university dormitories and staff apartments, non-compliant high-
technologies such as IoT, cloud computing, big data and AI, LAZZEN has launched smart distribution solutions and
power electrical appliances have become the main cause of electrical fires, but existing facilities have
products that are both reliable and industry-leading, which deeply adapt to power distribution demands in multiple
insufficient design redundancy and inefficient manual inspection, making it difficult to identify hidden
fields such as new energy, smart buildings, high-end manufacturing and rail transit; at the same time, we continue to
dangerous loads in a timely manner. Relying on non-intrusive load monitoring technology, we can not only
deepen the integration and innovation of smart distribution software and hardware, and create systematic solution
achieve millisecond-level cut-off of potential power sources for active fire prevention, accurately distinguish
covering the distribution side, the consumption side, and energy and carbon management, to fully assist customers
between dangerous/conventional electrical appliances of similar power, but also achieve 7×24-hour
in achieving digital, intelligent and low-carbon upgrades of the distribution system.
unmanned operation at the management end to reduce labor costs. Through long-term data accumulation,
we can establish user electricity consumption behavior profiles, providing a data basis for grid load
Case studies in the field of smart distribution
dispatching and line transformation.
Digitalization and standardization at the panel and cabinet level
With SEA Digital Intelligent Cabinets as the core, integrated intelligent components are integrated Smart human settlements
to achieve automatic device identification and plug-and-play, significantly enhancing delivery
efficiency and human efficiency. At the same time, by visualizing operational status, assessing
LAZZEN adheres to the "1+3+N" and "All IN ONE" design concepts, prioritizing "safety and reliability, low carbon
equipment health and warning of anomalies, the risk of failure is reduced, the intrinsic safety
and energy efficiency, health and comfort", creating intelligent living scenarios with communication, sensing and AI
of power distribution is consolidated, and a high-quality, sustainable power distribution data
technologies as the core, independently developing the LAZZEN Yunju Open Ecosystem Platform, and constructing
foundation is built.
N intelligent subsystems such as energy consumption management and smart lighting, to create a smart home
Strengthen system-level monitoring and operational analysis solution centered on Tianqi and bring high-quality smart living experiences to Chinese families.
Centering on the centralized management requirements of distribution rooms and medium The platform is built on cutting-edge technologies such as multimodal IoT communication and AI algorithms, with an
and low voltage systems, we achieve rapid fault location and multi-dimensional presentation of open and compatible system architecture and a comprehensive upgrade in four aspects, including experience and
operational status through unified models and single-line graph self-configuration, and drive the interaction. LAZZEN focuses on refining energy efficiency management and intelligent lighting systems, which can
transformation of distribution operation from "passive response" to "active management". We not only achieve precise power usage control and strengthen power usage safety, but also create personalized light
introduce multi-algorithm collaborative load forecasting models and achieve adaptive updates, and shadow experiences.
implement scenarios such as capacity planning and dispatch optimization, and enhance the
During the reporting period, we launched a series of 6-inch smart central control screens, leveraging their
economic operation level of distribution.
technological and scenario-based advantages to be implemented in multiple real estate projects and achieve bulk
Strengthen local perception and rapid response capabilities supply to leading real estate developers. At the same time, we achieved a number of industry results: we became
the sole partner in the field of indoor smart power consumption intelligence of the Science and Technology and
For scenarios with high response speed and high system independence requirements, PXT station Industrialization Center of the Ministry of Housing and Urban-Rural Development; the digital home integrated box
control units are deployed on the distribution cabinet side to achieve real-time monitoring and rapid participated in the formulation of standards in 12 provinces and municipalities, among which 5 provinces and
alarm of key circuits and equipment, enhancing the overall resilience of the distribution system with municipalities have released them; The integrated box has been implemented at 23 sample sites, and the Zhejiang
local processing capabilities. Jiaotong Control project has become a benchmark for Beilun Technology.
Case Key technologies for building low-carbon energy efficiency Potential
Risk types Risk analysis Response measures
and smart living equipment based on AI problems
LAZZEN developed an AI environmental control system for smart homes and green buildings in response ?Conduct specialized training on privacy protection and
to the security of aging homes, the need for dual carbon energy conservation, and the privacy pain points Millimeter-wave radar can ethical compliance for all staff, and require R&D personnel
of traditional cameras, and implemented it in smart home scenarios such as high-end residences and precisely monitor human to incorporate ethical guidelines throughout the entire
office buildings. The system is centered on smart sensors integrated with millimeter-wave radar and AI Surveillance
activities and vital signs. If stage of technical design and application.
temperature control algorithms, achieving high-precision human pose detection and linkage control deployed without effective ?Adopt a pure radar sensing technology approach, physically
and privacy
through millimeter-wave radar and deep learning algorithms. The AI temperature control algorithm can control, it can lead to privacy discarding optical cameras to cut off the risk of image
violations
violations, especially in close- privacy information leakage from the source.
autonomously learn room thermal inertia and user comfort preferences, taking into account privacy
protection, safety monitoring and low-carbon energy conservation, empowering the upgrade of smart
range applications such as ?Establish a multi-level review mechanism for technical
elderly care at home. solutions, codes and research results, and implement
living.
transparent supervision and review processes.
Technology ethics Privacy
?Implement the requirements for classified and graded
Issues
protection of data, and implement full life-cycle security
Millimeter-wave radar collects control over collected sensitive data.
To fully guard against scientific ethics risks, LAZZEN integrates ethical compliance requirements into the R&D
sensitive personal data such ?Training sample data from the research and development
process, ensuring that all R&D activities and technology applications strictly follow current ethical standards, laws
as human position, behavioral stage should be anonymized to remove information such
and regulations, proactively follow and adapt to the latest regulatory requirements, and conduct systematic ethical
trajectory, health status, etc. as timestamps and location tags, and the original data
evaluations before project initiation. At the same time, we established a full-process ethical control and information Data collection
If data collection, storage should be regularly destroyed after the model training is
disclosure mechanism, promptly disclose the progress of research and development and the results of ethical and use
and use are not carried out in completed.
reviews, actively accepted social supervision, effectively prevented and responded to scientific and technological accordance with regulations, it ?Clearly define the "Three No's" management red line:
ethical risks through full-chain control, and ensured the compliant, healthy and sustainable development of may lead to ethical issues such no collection of original facial or identity information, no
scientific and technological research and development. as data leakage and abuse. upload of undesensitized original waveform data, and no
conduct of invisible monitoring without user authorization.
Our application of AI technology is mainly project-oriented, focusing on the research and development of specific
technologies for industrial equipment monitoring and smart living scenarios. We do not basically encounter common
AI risks such as algorithmic bias, data abuse, and loss of control over autonomous behavior.
In smart home scenarios, we rely on millimeter-wave radar technology to achieve medical-grade precision detection I mplement a local processing strategy for edge computing,
where all signal processing is completed on the device end,
of vital signs and human activity. The physical principle of millimeter-wave radar technology, which detects objects
Millimeter-wave radar can raw data does not leave the domain or upload, and only
based on microwave signals, does not involve ethical issues in itself, but in practical applications, it can collect detect physiological signals outputs the final decision results externally.
sensitive data such as human behavior trajectories and vital signs, which may lead to a series of scientific ethical risks such as human movement, E xpand the boundaries of privacy protection responsibilities
and challenges such as privacy violations and data abuse. LAZZEN ensures that the application of technology does breathing, and heartbeat. If and incorporate data security and ethical requirements into
not infringe upon individual rights or public interests through multiple measures such as optimizing the technical the assessment of all positions in R&D, manufacturing, and
Social and used for real-time tracking
Misuse and operations.
architecture, standardizing systems and processes, and providing compliance training for all employees. psychological or large-scale monitoring,
abuse ? E stablish a privacy review mechanism for patent
effects it can raise public concerns submissions and academic releases, and strictly prohibit
about privacy and freedom the public release of algorithms, data and charts that can
and have adverse social and restore sensitive information.
psychological effects on social ? S trictly follow the "notice-consent" principle and conduct
behavior. data collection and technology application on the premise
of user authorization.
Digital Transformation Digital construction initiatives
LAZZEN focuses on the digital and intelligent upgrade of its full-chain business, actively promotes digital
?Digitalization of channel management
transformation, steadily enhances information technology research and development capabilities, strives to improve
the process platform, builds a scientific operation mode, and continuously converts the achievements of information LAZZEN implemented the second phase of the LCM Dealer Portal project, achieving a full-process online reconstruction
technology construction into development effectiveness. of the core business of dealers. Through the electronic transformation of the signing process, the confirmation and
circulation cycle was reduced from 10 days to 7 days, and business efficiency was increased by 30%. The compliance
We have established a Digital Transformation Committee (DXMT), which has the management capabilities of digital design of electronic signing and the full-process systematic control also avoided the risks of document omissions and
transformation planning, investment, project decision-making and architecture governance, and has defined ambiguous rights and responsibilities in the paper process. It achieves pre-emptive control of financial and compliance
specific responsibilities to fully promote the implementation of integrated digital construction. Based on the overall risks, improves the efficiency of connection with partners, and enhances the stability of industrial chain synergy.
digital transformation plan and project construction requirements, we have formulated the Operating Mechanism
of the Digital Transformation Committee, established a full-process closed-loop management mechanism of
"planning - implementation - review - optimization", guided by the annual digital transformation special work plan,
and advanced digital project construction in stages according to different business scenarios, we clearly define the Digitalization of engineering services
implementation goals, responsible entities and timeframes of each project; hold regular meetings of the Digital
LAZZEN builds the LPM Smart Distribution Project management platform, focusing on the full process control of smart
Transformation Committee to conduct a comprehensive review of the achievements and business empowerment
distribution projects. We innovatively build a standardized management system consisting of 13 core milestones, which
effects of each project, sort out the problems in the transformation process and clarify the optimization direction in can flexibly configure key nodes such as material preparation, production processing, delivery acceptance, etc. Through
combination with operational data and actual business needs. refined management, we effectively reduce inventory overstock, payment delay and audit compliance risks, and
strengthen project compliance and enhance management transparency.
Architecture of the Digital Transformation Committee (DXMT)
Digital Transformation Main Committee Digitalization of production operations
LAZZEN is advancing the MES production line transparency project, using hierarchical electronic dashboards to monitor
production status in real time, enabling production managers to grasp production progress and abnormal information
Research and Digital in real time, and combining data-driven meeting mechanisms to quickly identify the root causes of problems, promoting
Marketing Supply Chain Operation
Development Technology performance correction and per capita output increase, improving delivery efficiency by 10%, improving the work
Subcommittee Subcommittee Subcommittee
Subcommittee Subcommittee efficiency of basic managers by 25%, and achieving paperless office. By introducing AI technologies such as machine
learning and deep learning, we have continuously improved the construction of the APS system. Through operational
Digital transformation operation mechanism research constraint algorithms, we have reduced the scheduling time of planners by 27%, improved planning accuracy and
response speed, and strengthened intelligent control of the production process.
Project Digitalization of warehouse management
Requirement Solution Procurement Acceptance
implementation
review review review review LAZZEN carried out the vertical warehouse efficiency optimization project, dynamically optimizing warehouse resources
through algorithmic strategy innovation. Based on the cold and hot data of material usage frequency in the container
warehouse of the vertical warehouse, we intelligently calculated and matched the optimal warehouse location for
LAZZEN digital project classification overview inbound and outbound paths, and automatically moved the warehouse to improve the efficiency of material inbound
and outbound. We achieved a 5% increase in pallet warehouse utilization, 19% energy savings in container warehouses, a
Application systems SAP, PLM, MES, WMS , etc 15% increase in inbound efficiency, and reduced inventory overstock and energy waste. In addition, we have reduced the
time for handling abnormal processes by adding abnormal box card control and one-click material lock to further improve
Business analysis platform, five aspects of marketing, product line turnover efficiency.
Data platform
operation combat platform, etc
Utility software Solidworks, moldflow, etc
Digitalization of logistics supply chain
Basic operations and maintenance Computers, hardware, servers, firewalls, penetration testing
In 2025, LAZZEN integrated the SRM , smart plant (vehicle management system), and WMS platforms, and displayed
the raw material and finished product receiving and dispatching processes in the form of dashboards, enhancing the
During the reporting period, LAZZEN, through full-chain digital and intelligent upgrades, deeply integrated transparency of each process node and personnel efficiency of raw materials (especially urgent materials) and finished
digitalization into product lifecycle management, covering every link from design, supply chain, production to products.
quality control, data-driven decision-making, improved operational efficiency, and strengthened risk prevention and
control.
Digitalized quality control
Product Quality
LAZZEN has upgraded its data-driven full-process quality control system, built a closed-loop digital quality system,
deployed the LIMS (Laboratory Information Management System) in reference to the CNAS system, increased
report production efficiency by 89.6% through the automatic generation of test electronic records and reports, and
simultaneously strengthened the traceability of test data and reduced the risk of human error; the FAI intelligent image
Governance
recognition project was implemented, relying on AI vision technology to achieve automatic recognition of new product
inspection images, which increased inspection efficiency by 16.3% and precisely prevented quality complaints through
LAZZEN has always adhered to the core orientation of "Customer-centered, Quality as dignity", anchored the
the system's fool-proof mechanism; we introduced professional FMEA (Failure Mode and Effects Analysis) tools to improve
development vision of "Building quality competitiveness, becoming a synonym for high quality in the industry",
the quality early warning system and help quickly identify the root causes of problems. At the same time, we optimized
the QMS system based on the pain points of customer complaints to achieve precise implementation of special customer
and adhered to the quality culture and policy of "Prevention first, self-management, doing it right the first time,
requirements through digital tagging management, significantly reduced the incidence of related customer complaints, continuous improvement". LAZZEN is deeply engaged in quality requirements and standards centered on IPD,
and built a comprehensive defense line for product quality. builds a comprehensive, efficient and appropriate quality management system, takes customer experience as the
fundamental benchmark, regards product reliability as the foundation of the enterprise, and through continuous
innovation and optimization, provides intelligent, green, safe and excellent products and quality services to
customers and society, steadily enhancing quality
Digitalization of material procurement
competitive advantage, and moving steadily towards
the international leading level.
Through the integration and calculation of multi-system data, LAZZEN has digitized the material planning order
management strategy model online and relied on automated system order placement to create a closed-loop material
As of the end of the reporting period, the product
replenishment planning system that integrates data integration, intelligent analysis, human-machine collaborative
sampling pass rate rose to 99.6%, the business scope
decision-making, and automatic execution, effectively enhancing planning accuracy, efficiency, and agility, and reducing
covered by the quality management system certification
inventory costs and material shortage risks. Currently, 80% of material orders have been placed through RPA (Automated
Order Placement). reached 100%, and the ISO 9001 quality management
system certification and IATF 16949 automotive quality
management system certification remained valid.
Production line upgrade
We applied lean thinking through production line layout, workstation design, job balance, combined with the use of
automated equipment, low-cost automated tooling, and tools, to achieve a lean flexible benchmark production line ISO 9001 Quality Management IATF 16949 Automotive
that meets small-batch, multi-variety demands. System Certification Quality Management System
LAZZEN Quality strategy goals Certification
The "NDW2-2000 fully automated production line" at the Hangzhou Bay Mega Factory uses automatic assembly
processes such as "automatic oiling, automatic screw assembly, automatic lid closing, automatic arc extinguishing
chamber assembly, and automatic drawer seat assembly" to create an unmanned control mode of automatic Year Goals Specific Content
packaging in the packaging section and AGV automatic conveying, achieving full control of work orders and material
information as well as full control of intelligent shelf storage locations. In 2025 Deep promotion The product quality level is leading in the industry
Quality culture
Prevention-oriented Self-management Do it right at the first time Continuous improvement
Work philosophy Work style Work requirements Work topic
Shift from eliminating Quality management Work must be done rightly Constantly improve
quality issues to is integrated into the at the first time, products and innovate, pursue
preventing them. daily work of business must be made well at the excellence, and
Management extends to departments, everyone first time, services must avoid stagnation and
clients and suppliers. is responsible for the be provided perfectly, arrogance.
quality of their own eliminate quality risks, and
work. reduce quality costs.
Strategy R&D Materials Process Customer
LAZZEN adheres to the quality consensus that "Prevention is better than correction and do it right at the first time
has the lowest cost", and has established a quality management system covering R&D, manufacturing processes Develop a project evelop material
D learly define the
C Accept customer
quality plan and clearly inspection documents quality control points in problem feedback
and supply chains. At the source of research and development, we reduce quality risks throughout the entire life define the quality goals and clearly define the quality control plan. through the Customer
cycle from the design source by optimizing processes and deliverable standards, strengthening failure avoidance of the project. inspection standards. Service Management
planning for similar problems, and improving efficiency in solving R&D problems. At the mass production and supply onitor the production
M System (CSM).
chain end, we launch special campaigns to tackle key quality issues, simultaneously carry out special campaigns for onduct tests according
C onduct incoming
C quality through first
to the test cases to inspection through the inspection, patrol Import quality issues
improving the quality of suppliers and materials, strengthen quality synergy in the industrial chain, and ensure the
ensure the performance QMS system and record inspection and final into the Improvement
stability and reliability of mass production products. In the production process, we optimize process control through compliance of the new the results. inspection, and upload Management System
CLE (Process Control Level) projects, Quality Management Group (QCC) activities and automation upgrades, increase product. the data to the QMS (IMS) and form a
product pass rate and spot-check pass rate, and reduce process fluctuations and resource waste. At the platform system. team to implement
Ensure the project improvements.
empowerment level, we promote material normalization, improve the test case library and CBB library, optimize
delivery quality through
the IMS system and conduct quality training to continuously enhance the quality level of the entire chain through technical review (TR)
standardization and digitalization capabilities. and business decision
review (DCP).
Carry out the special project for improving
TOP issues
Optimize the R&D process and
Carry out the 6sigma special project
the delivery template
Carry out the FMEA special project
Improve the issue closure rate Case Quality Management Group (QCC) activities
Improve the Improve the Optimize the engineering change
quality of technical
new product quality of mass-
business
research and produced LAZZEN focused on quality improvement and cost optimization at the production site, implemented QCC
development products Carry out the special project activities, promoted full participation in quality management, and created an atmosphere of continuous
Carry out periodic reliability for improving the quality of TOP improvement. During the reporting period, 27 groups of topics were proposed and 163 employees
Improve the
testing services to monitor conformity Improve the suppliers participated in the activity. At the same time, the product qualification rate was improved, resource waste
the product quality testing of mass material
Carry out the special project for was reduced, and the quality awareness and collaboration of employees were significantly enhanced.
production quality
compliance in real time products improving TOP materials
Carry out the special project for
Improve the
Improve advancing quality inspection forward
Establish a core customer customer service
satisfaction of
the process Enhance the automation level of
service team and provide quality
core products material inspection
specialized services
Jointly carry out quality Carry out QCC activities
improvement projects with
Launch a special project to enhance CLE
customers
(Process Control Level)
Improve the level of process automation
Impact, risk and opportunity management
Quality risk management
Quality incentives
To strengthen quality risk management, LAZZEN ensures reliable quality throughout the product life cycle by
LAZZEN builds a variety of quality incentive methods and conducts a series of quality incentive activities to fully
formulating project quality plans, strictly controlling incoming and outgoing inspections, implementing full-process
mobilize the enthusiasm and initiative of all employees to participate in quality improvement. During the reporting
monitoring and closed-loop customer problem management. LAZZEN has established a regular quality assessment
period, we organized three rounds of immediate quality incentive evaluation, three rounds of IMS excellent case
and improvement mechanism. Through monthly quality meetings and annual management review meetings, we
selection, conducted quality knowledge competitions, quality essay competitions with prizes and special activities of
systematically assess product quality risks, quality target performance levels and improvement directions. At the
"Flagship Plan - Quality Star", submitted more than 200 people for evaluation, 17 excellent cases, received 47 quality
same time, relying on regular internal audits and inspections, we accurately identify the improvement points in the
essays, and 27 projects participated in the Quality Star selection. Ultimately, a number of outstanding individuals,
quality management process of each business department and promptly follow up on the improvement of non-
teams and works were selected and incentivized, effectively strengthening the quality responsibility awareness of
conformities, continuously improve the consistency of operational processes with quality management requirements
employees and creating a good quality culture atmosphere.
and promote the closed-loop optimization of the quality system.
Product recall
LAZZEN has established special management systems such as the Customer Return and Recall Management
Procedure and the Nonconforming Product Management Procedure, and has established a closed-loop handling
process and emergency response plan for after-sales issues. We have implemented standardized and efficient
handling of return and recall matters for customer standard orders and sample orders, effectively safeguarding the
legitimate rights and interests of us while fully protecting the legitimate demands of customers, and built a solid line
of defense for product quality after-sales service.
Product recall process
Submit quality exchange and complaint 01
Quality incentive activities applications, return applications.
Quality training
LAZZEN continued to carry out quality training activities, holding a total of 30 quality training sessions throughout 02 Review non-quality return information and
issue an execution recall notice; quality
the year, with more than 700 participants. The training was conducted in the form of lectures combined with project return information review and recall notice
practice, covering aspects such as quality concept consensus, quality professional tools, quality system knowledge, issuance, along with on-site after-sales
business process knowledge, audit skills and techniques, to comprehensively enhance the professional capabilities service.
and practical skills of employees and lay a solid talent foundation for the steady improvement of the company's Count and confirm the quantity of 03
product quality. returned items.
The quality department of LAZZEN conducts specialized training on automotive-grade systems
From May to July 2025, in order to meet the standards and quality requirements of automotive-grade
products, LAZZEN's quality department carefully planned and organized relevant personnel to participate
in the automotive-grade system special training. The training course covered several key areas:
?The Error-Proof Verification Training leads trainees to explore the ingenious strategies for preventing
Confirm the quality analysis and handling plan 05
errors, building the first solid line of defense for product quality;
of the returned items, make meeting decisions
?"Quick Response and Team Problem-Solving Training" focuses on developing agile thinking and based on the classification of "safety and
efficient collaboration skills in the face of complex problems, ensuring that teams can break through significant impact issues, batch issues, general
quickly at critical moments; issues", fill out the product recall list and
?The IATF 16949 Special Characteristics Management Requirements course provides in-depth notification form and initiate the recall process.
repaired products and ship them as needed.
interpretation of the standard to help students accurately grasp the key points of special characteristics
management;
?The "Qualified & Nonconforming Product Management" course focuses on the meticulous control of
product quality, preventing the inflow of nonconforming products from the source and ensuring that Dismantling or scrapping of returned items. 07
every product meets high-quality standards;
?The Subsupplier Management course aims to optimize the
supply chain system and ensure that the products and services
provided by subsuppliers are always stable and reliable
through scientific and effective management methods;
?The course "Change Management & Change Management - In 2025,
Production Trial Run" systematically explain the processes and
methods of change management, as well as the precautions The number of products The sales involved in The number of product
during the production trial run phase, providing strong support recycled was product recycled was recall incidents was
for enterprises to achieve a smooth transition during product
change. 0 0 0
Indicators and goals LAZZEN has formulated specialized management systems such as the Customer Complaint and After-sales Handling
Management Procedure, Customer Return and Recall Management Procedure, and Process Management Specification
for Large Customer Service System. At the same time, we regularly conduct a series of training sessions for the service
capacity enhancement camp, providing monthly specialized training for the service team on low-voltage electrical
Indicators Goals Achievement status fundamentals, professional product knowledge, and on-site problem handling. We will continue to strengthen our team's
professional service capabilities and ensure reliable power supply for customers in all aspects.
PPM decline rate -25% Achieved
During the reporting period, we optimized the management system for large customer service, standardized the work
Client RoHS issue complaint 0 Achieved content and execution process related to large customers, thereby enhancing the professionalism and pertinence of
large customer service. At the same time, we rationally integrated effective resources, clarified customer classification
Customer audit pass rate in one go 100% Achieved standards, precisely met the needs of customers at different levels through differentiated services, and further unified full-
channel service standards and solidified standardized service processes to effectively improve overall service efficiency.
The PPM reduction rate of defective batches of materials going
-25% Achieved LAZZEN launched the CSM after-sales management system to create a digital after-sales solution centered on "integrated
online
control, intelligent efficiency improvement, and data-driven decision-making". The system integrates the full-scenario
Number of RoHS defects in incoming materials 10 Achieved functions of after-sales service work orders, quality exchanges, and customer complaints, breaking down the barriers of
traditional decentralized after-sales management. At the same time, it links up after-sales service personnel of dealers
Incoming material pass rate 98.5% Achieved to build a full-chain service loop of "headquarters - dealers - customers", which not only improves service quality but
also strengthens the uniformity and efficiency of the brand after-sales system. Through digital means, we achieve a dual
Product sampling pass rate 99.6% Achieved improvement of enterprise after-sales service efficiency and customer satisfaction, and fully empowered the refined and
efficient implementation of customer service work.
The proportion of business covered by quality management
system and information security management system 100% Achieved In response to customer feedback, LAZZEN focuses on key customers and bulk quality issues, integrates internal resources
certifications to establish an efficient quality issue escalation and handling mechanism, builds a complete management system
covering pre-issue quality issue escalation handling and post-issue customer complaint handling, and achieves pre-issue
prevention and post-issue efficient resolution through preventive management and rapid response measures. To enhance
customer service quality and satisfaction in all aspects.
Customer Service We have developed the Customer Complaint and Aftermarket Management Procedure, which clarifies the job
responsibilities of relevant departments such as dealers/offices, after-sales service departments, technical support
departments, process quality departments from the aftermarket end, and makes standardized requirements for the
Customer service system
record-keeping and follow-up work throughout the complaint handling process, achieving clear rights and responsibilities
and closed-loop control in aftermarket problem handling. We continuously improve the customer service commitment
system. Customers can report on-site problems through the local office or the hotline in the first instance. If on-site service
LAZZEN has always adhered to a customer-oriented service philosophy. Our is required, it will be followed up and supported by a dedicated person. LAZZEN commits to the core service principles
domestic service network cover more than 140 key cities, achieving end-to-end of three-year product warranty and priority resolution of customer problems, and establishes a graded rapid response
rapid connectivity through an ultra-representative service system, and providing mechanism: responding to general problems within 12 hours, major problems within 1 hour, and serious incidents
professional and efficient services to customers in more than 30 countries and within 0.3 hours, with after-sales engineers arriving at the site within 24 hours and replying to customers with problem
regions around the world.Through internal and external linkage, we provide explanations or handling reports within 3-5 working days, to do our best to ensure the customer experience.
customers with more considerate, more professional, and more efficient
In 2025, LAZZEN's overall customer satisfaction score was 93.20 points.
services. LAZZEN was the first in the industry to introduce a three-year warranty
service for its products, insisting on putting customer needs at the center. After-
sales service always prioritizes solving practical problems for customers and
fully ensures the safety and reliability of customers' electricity usage. From
responding quickly to customer needs, to providing 7×24-hour uninterrupted
service, and to archiving information throughout the service process, we have
established a standardized, full-process service system to ensure efficient,
standardized and traceable quality service for customers.
LAZZEN has obtained the five-star certification required by the GB/T 27922-2011
Commodity After-sales Service Evaluation System Standard, marking that our Certification for after-sales service of
after-sales service capabilities have reached the benchmark level within the goods
industry and the national standard. 2023 2024 2025
Customer satisfaction score 92.28 93.11 93.20
Responsible marketing
LAZZEN strictly adheres to national laws and regulations such as the Advertising Law in the management of product
and business promotion, scientifically formulates appropriate promotional content and promotion methods, and
adheres to the authenticity and compliance of promotion. To regulate marketing cooperation and market order,
LAZZEN has developed the Dealer Manual, which clearly stipulates core contents such as distribution areas, product
prices, sales conditions and after-sales service guarantees, ensuring that the cooperation between LAZZEN and
dealers is based on clarity and fairness, and focusing on building a stable and win-win dealer cooperation network.
At the same time, we further improved the responsible marketing management system, identified the circumstances
of malicious cross-regional sales by different entities in response to cross-selling behavior in market operations,
formulated differentiated penalty measures and set reasonable exceptions. For violations that violate the principle
of genuine promotion, such as false discounts and dealers' false self-development, clear criteria for identification
Customer letter of thanks
and tiered penalty schemes have been established, and the applicable circumstances for aggravated and mitigated
penalties have been specified to strictly regulate marketing practices in all aspects.
Customer& Partner honor awards
To further empower the growth of dealers and enhance the overall professional and
market development capabilities of the channel, LAZZEN also conducts specialized
training and case-sharing activities for dealers, focusing on core areas such as
smart distribution and new energy (wind, solar, energy storage and charging). We
provide in-depth training on smart distribution solutions and new energy industry
solutions, and offer comprehensive explanations covering industry pain points,
solutions to project practice and question answering. The training and case sharing
effectively enhanced the solution implementation and market development
capabilities of dealer project managers, helped to enrich the channel professional
talent reserve, further strengthened the channel operation efficiency, and laid a
professional foundation for the compliant expansion of market business. Through
Diamond Partner Unit of the Building Zhongcheng Liancai Outstanding Sungrow Power Supply Beyond Ambition
Electrical Branch of the Architectural the construction of a comprehensive and standardized marketing management
Society of China Partner Award Award system and channel empowerment actions, we have continuously enhanced our
market compliance operation capabilities and core competitiveness, earnestly
practiced the concept of responsible marketing, and promoted the long-term
symbiosis and common development of the enterprise and our partners.
Sungrow Power Supply ESG Best Hopewind Electric Supplier of the Year
Kehua Data Excellence Partner Award
Practice Award Award
Mingyang Smart Energy 2025 Strategic TGOOD "TGOOD Award" Ecological
Ampace Supplier of the Year Award Specialized training and case sharing for dealers
Supplier Award Partner
Information Security and Customer Privacy Protection LAZZEN has developed a comprehensive information security contingency plan, incorporating network risk
assessment, information security training, security testing and practical drills into the core links, forming a
management loop of "assessment - training - testing - drill". LAZZEN conducts information risk assessment on a
regular basis. Through the information security risk assessment form and the annual information security planning
LAZZEN strictly adheres to relevant laws and regulations such as the Data Security Law and the Cybersecurity Law,
document, we systematically identify and assess potential security threats, clarify risk levels and impact scopes,
comprehensively strengthens the information security defense line, and builds a full-dimensional information
and formulate response measures.We engage an external third-party company to conduct a comprehensive
security management system covering equipment security, network security, data security, software and hardware
penetration test on our Internet resources to accurately identify high-risk vulnerabilities such as weak passwords and
security, and computer room management. As of the end of the reporting period, our information security
configuration errors, and to clarify the direction for subsequent security reinforcement.
management system certification covers 100% of business areas and remains valid.
During the reporting period, we conducted 9 disaster recovery drills for different infrastructure or application
systems, covering key systems and facilities such as the core switch firewall, K8S platform, SAP, LOMS order
Our internal digital intelligence platform is equipped with advanced security placement system, and UPS of Haiyan Data Center. This verified that the disaster recovery mechanism met the RTO
permission management capabilities, which can precisely implement data and RPO goals, while identifying optimization items to continuously improve the disaster recovery system.
access control and permission allocation, effectively defending data and
privacy security at the management level. At the same time, aTrust VPN, WAF
firewall, situational awareness and antivirus software are used to build a We regularly organize special training on information
technical barrier for information security. security and conducted special education on information
security for management trainees to enhance their
awareness of security. We conduct online phishing email
Data security prevention education and training for all employees,
effectively enhancing the security awareness and
The security of end-user devices is guaranteed through the Lenovo practical ability of all employees to prevent phishing
access and desktop management system and the Internet behavior emails, comprehensively safeguarding the security of
management system. A dual data protection mechanism of core company and customer data, and ensuring the safe and
business data backup in the headquarters computer room and off-site stable operation of business systems.
disaster recovery computer room is established, along with regular
During the reporting period, our information security
disaster recovery drills to ensure high data availability and stability. ISO 27001 Information Security training coverage rate was 100%, and no information
Management System Certification Information security education and training
security incidents occurred.
Software and hardware security
The enterprise version of ESCT antivirus software is used for terminal anti-virus management, and the
physical interfaces of terminal devices are controlled through the Lenovo desktop management system to
prevent unauthorized device access.
Network and device security
Relying on the situation awareness system of network security service providers for real-time monitoring
and analysis of internal network threats, isolation of production areas, office areas and Internet access is
achieved through measures such as switch ACL policies, firewalls and bastion hosts to ensure secure access
and auditing of important business systems.
Computer room management
The computer room environment is equipped with complete fire protection, UPS power supply and constant
temperature and humidity facilities, strict access control and emergency response plans for catastrophic
failures are established, and regular drills are conducted to further ensure the stable operation of business
systems.
Supply Chain
Supplier Management
Sustainable Supply Chain
Supply Chain Security
Treat Small and Medium-Sized Enterprises Equally
Contributions to the United Nations
Sustainable Development Goals (SDGs)
Supplier Management
management of suppliers
Projects that require compliance with all
Supplier social
responsibility
Strategic suppliers, preferred suppliers, national and local environmental laws and
Hierarchical
LAZZEN is committed to sustainable development and responsible procurement, and continuously improves and qualified suppliers, limited suppliers and regulations, such as environmental protection,
optimizes the supplier management system. We have established systems such as the Supplier Access Certification eliminated suppliers. production safety, and labor management.
Management Procedure, Supplier Stratification and Grading Management Approach, and Supplier Performance
Management Approach to further standardize supplier management and enhance the efficiency and transparency of
supply chain collaboration.
LAZZEN has established a supplier management structure centered on the Procurement Committee, with our List of supplier system certifications
president as the top leader, fully responsible for our supply chain management system and management. The
Committee has a supply chain system general manager and a supply chain quality operations department head,
who are responsible for coordinating our supply chain management, and a management structure in which general Quality Management System Certification ISO 9001
managers of product lines, quality systems, operations and strategic finance systems work together.
?Quality Management System Certification IATF 16949
The management structure of the Procurement Committee of LAZZEN
?Intellectual Property Compliance Management System Certification GB/T 29490
First-level Procurement Committee Level Role Information Security Management System Certification ISO/IEC 27001
President / System General Manager / Category
Director
General Manager Environmental Management System Certification Certification ISO 14001
Deputy Director Procurement / Technology
Occupational Health and Safety Management System Certification ISO 45001
Second-level Procurement Committee Operation Cost Technology Delivery
Permanent Member
Procurement Quality Others
Hazardous Substance Management System Certification IECQ QC 080000
Supervisory
Committee members, Audit
other attendees Energy Management System Certification ISO 50001
Third-level Procurement Committee Executive Secretary Procurement Committee Levels
Procurement Committee Three-level Procurement Committee Levels
Sustainable Supply Chain
Structure
LAZZEN adheres to the concept of sustainable development by establishing a sound institutional system and
Supplier full-process management systematically promoting the construction of a green and responsible supply chain. In 2025, we formulated and
released the Supplier Social Responsibility Management Measures and the Supplier Social Responsibility Review
LAZZEN implements strict assessment criteria for the screening and admission of suppliers, and integrates ESG into
Form, and encouraged suppliers to sign the Supplier Social Responsibility Commitment Letter. We fully integrate
the screening and admission criteria of suppliers based on the assessment of enterprise qualifications and delivery
environmental, social and governance (ESG) factors into the supplier access review and performance evaluation
quality to ensure the sustainability and stability of potential suppliers.
process, continuously strengthen the supply chain ESG management mechanism to provide solid support for
building a responsible and sustainable supply chain system.
Supplier performance assessment
Access certification management
We continuously conduct environmental and social impact assessments of our suppliers, incorporate environmental
Conduct a comprehensive audit and protection requirements, social responsibility, and compliance operations into the scope of supplier access and daily
Purchase spread rate (excluding bulk) -6%
evaluation of new suppliers through management, promote the joint practice of sustainable development concepts by upstream and downstream, and
qualification certification, system certification, Incoming material pass rate 98.5% build a responsible, green and low-carbon supply chain ecosystem. During the reporting period, we conducted social
and product certification to ensure the impact assessments on 100 suppliers and environmental impact assessments on 120 suppliers.
The on-time delivery rate to standard is 90%
availability, procureability, cost, and support
capacity of materials. Domain purchase program file update rate 100%.
Green supply chain
Supply Chain Security
LAZZEN requires its suppliers to sign the Environmental Protection (RoHS) Agreement and the Supplier Material
Environmental Protection Assurance Agreement, encourages the use of degradable raw materials and low-carbon
processes, and promotes the green transformation of the supply chain. To ensure the continuous stability of the supply chain and the operation of the business, LAZZEN has established a
full-process closed-loop management system covering supplier access certification, performance assessment, and
With the core strategic goal of building a green and sustainable supply chain system, LAZZEN has established a supplier classification management. By establishing a backup mechanism for long and short lists of suppliers and
dedicated green supply chain management department to promote the greening process of the entire chain in a implementing a dual-supply backup strategy for key core materials, we effectively diversify supply risks and enhance
coordinated manner. To achieve this goal, we have built a green information platform that integrates SRM system, supply chain resilience.
WMS, TMS (transportation management system), simulation analysis and PLM system, building a full-chain digital
Supply chain risk management
management platform that covers basic information management, green production, green material management,
supplier management, green design, and green logistics.
Green Information Platform
LAZZEN attaches great importance to supply chain risk management and has established a management mechanism
covering risk identification, assessment, response and monitoring. We work with our suppliers to comply with
international environmental standards and social responsibility norms, and avoid supply chain risks through a
diversified supplier strategy, regular evaluation of supplier performance, establishment of contingency plans, the
signing of compliance commitments, enhanced communication and cooperation with suppliers, implementation of
supplier development and improvement plans, and adoption of advanced supply chain management systems, so as
to ensure the stable operation and continuous development of our business.
Basic Green Green Material Supplier Green Design Green
In terms of risk identification and assessment, we have established a regular supplier audit system, systematically
Information Production Management Management Logistics
screening for potential risks through annual comprehensive audits, delivery quality tracking, conflict minerals
Management
due diligence, and environmental compliance checks such as RoHS. In 2025, we conducted more than 60 audits
In 2025, we continued to optimize the SRM system, enhance operational efficiency, and add a mold ledger of our supplier system, more than 40 new supplier access audits, and completed more than 30 mineral surveys,
management module to achieve systematic ledger management. At the same time, we promoted full access to the continuously enhancing the transparency and compliance of our supply chain.
SRM system at the supplier end to achieve paperless business collaboration. In addition, we promoted the use of
To enhance supply chain resilience, we revised and implemented a new version of the Delivery Contingency Plan
recyclable turnover boxes. By 2025, 40 suppliers had adopted turnover box packaging, reducing the use of paper
in 2025, further clarifying the emergency organizational structure, response process and execution responsibilities
packaging and promoting green logistics.
to ensure the rapid recovery and stable operation of the supply chain in case of emergencies. At the same time, we
updated our conflict minerals management system documents and pushed suppliers to sign relevant compliance
Conflict minerals management agreements to strengthen risk control from the source.
To practice responsible sourcing, we strictly enact a conflict-free minerals sourcing policy. To implement the
requirements, we urge suppliers to sign REACH commitment letters and fill out research forms to strengthen the
source management of hazardous substances. At the same time, we updated management documents related to
conflict minerals, requiring suppliers to complete agreement signing and establish a traceable and responsible
mineral supply chain system. In 2025, we conducted more than 30 mineral surveys in total.
Sunshine sourcing
To continuously create an open, transparent, compliant and orderly procurement environment, LAZZEN actively
promotes the Sunshine Procurement mechanism and comprehensively regulates procurement practices. We
explicitly require all suppliers to sign the Integrity Cooperation Agreement, which constrains the cooperation
behavior of both parties at the institutional level and establishes the foundation of integrity cooperation. During the
reporting period, the signing rate of the Supplier Integrity Clause was 100%. At the same time, we regularly issue
integrity initiatives to smooth supervision and feedback channels, set up an audit reporting hotline to accept internal
and external supervision, and further strengthen the transparency and standardization of the procurement process.
In addition, during holidays, we issue integrity initiatives to all suppliers, resolutely eliminating any form of grey
behavior in order to maintain a clean procurement environment.
In 2025, our procurement process remained open and transparent, and no major integrity violations occurred,
further consolidating the integrity foundation and sustainable governance capacity of the supply chain.
Strengthen supplier training
Treat Small and Medium-Sized Enterprises Equally
LAZZEN regularly organizes safety operation training and on-site supervision and inspection, and assists suppliers
in continuously optimizing production processes and quality control capabilities through lean improvement and LAZZEN strictly adheres to the requirements of relevant laws and regulations such as the Law on Promoting the
special quality enhancement coaching, jointly strengthening the foundation of supply chain security. Development of Small and Medium-Sized Enterprises, upholds the principle of fair, just, equal and mutually
beneficial cooperation, respects the legitimate rights and interests of every supplier and partner, and ensures that all
In 2025, we organized multiple supplier training and on-site coaching sessions on themes such as quality types of market entities enjoy equal cooperation opportunities and treatment throughout the cooperation process.
improvement, lean production, and green transformation, including APQP/PPAP process training, lean production
improvement coaching, green procurement and ESG special training. To ensure the compliance and timeliness of payment, we have established a sound financial control system, regularly
conduct financial budget preparation, tracking analysis of implementation and verification of payment ledgers, and
ensure reasonable fund allocation and standardized payment processes through refined financial management.
During the reporting period, we strictly fulfilled payment obligations, with no cases of overdue payments to small
and medium-sized enterprises, maintaining a healthy and stable supply chain ecosystem through practical actions.
APQP training for key suppliers PPAP training for key suppliers
Supplier quality management training Training on RoHS risk identification and control reporting
LAZZEN establishes and continuously improves the supply chain emergency response plan system, clarifying the
response process and division of responsibilities under various emergency scenarios. In 2025, we updated the
Delivery Contingency Plan, further strengthening the closed-loop management mechanism from risk identification,
assessment to emergency response, to ensure the stability and controllability of the supply chain in the event of
fluctuations in the external environment or emergencies.
Environment
Responding to Climate Change
Environmental Compliance Management
Resource Management
Pollutant Emissions
Waste Management
Chemical Management
Biodiversity Conservation
Contributions to the United Nations
Sustainable Development Goals (SDGs)
Responding to Climate Change Identification of climate risks and opportunities
In response to the "dual carbon" goals, LAZZEN identified and managed the risks and opportunities of climate
LAZZEN has always placed addressing climate change in a strategic priority position and maintained close and change. We classified climate change risks into physical risks and transition risks, and developed corresponding
continuous attention. We actively respond to the requirements of the national "dual carbon" goals, attach great response measures based on the relevant impacts of climate change to better address climate change.
importance to building our own capacity to address climate change, and accelerates the process of green and low-
carbon transformation with firm determination and efficient actions. We align with the International Sustainability
Standards Board's (ISSB) IFRS S2 - Climate-related Disclosures framework to analyze and manage climate change
Risk / opportunity types Risk / opportunity description Response measures
issues. We continuously refine the climate change management structure to enhance our ability to respond to
climate change.
Production disruptions, depreciation of fixed assets, Establish a regular tracking mechanism for meteorological
labor losses, and increased facility maintenance information and develop contingency plans for extreme
Governance
Acute risk costs caused by extreme weather (such as heavy rain, weather and sudden environmental incidents; Introduce
typhoons, heavy snow, floods, high temperatures, digital platforms for real-time monitoring to facilitate early
etc.) affect product delivery warning of potential safety hazards
LAZZEN has established the ESGMT (Environmental, Social and Governance Management Team), incorporating Physical risks
Changes in temperature and precipitation patterns
climate change governance into the committee's decision-making process. We have clearly defined the rights and caused by global warming may affect the extraction
and transportation costs of raw materials
responsibilities of each level of organization and prioritized integration of internal organizational resources, to drive Keep a long-term focus on climate change trends and early
Chronic risk
swift transformation and innovation in response to the rapid changes and challenges in the external environment, Both Shanghai Factory and Hangzhou Bay Mega warnings, and develop climate change response strategies
Factory are located in coastal areas and face the risk
fully ensure the achievement of medium-to-long-term strategic goals. At present, We are initially establishing of rising sea levels, which may increase maintenance
relevant systems and will revise and improve them year by year. costs for the plants
Improve the carbon emissions and product carbon
Climate change governance framework and responsibilities footprint management system, set climate change-related
Government requirements for climate-related management targets, continuously optimize the energy
information disclosure are becoming increasingly structure and energy conservation and carbon reduction
strict, and the pressure on companies to manage measures, and strengthen the research and development
Policy and
compliance is gradually increasing. carbon of green and low-carbon technologies. Keep track of laws
legal risks
Director of the ESGMT emissions from production and operation need to be and regulations related to GHG emissions in domestic and
strengthened, and the pressure of GHG control for international markets in real time, refine the company's
overseas business is increasing internal environmental management system, and
Oversee and manage efforts respond promptly to new laws, regulations and regulatory
related to addressing climate Member of the ESGMT requirements
change
In the new energy sector, technology is evolving Increase investment in research and development,
Oversee LAZZEN's climate risks Transition Technical
rapidly, and our products may face the risk of a decline strengthen cooperation with research institutes, and further
risks risks
and opportunities and develop in product competitiveness enhance technological reserves
corresponding management
Departments and subsidiaries Pay attention to changes in carbon market policies and lay
initiatives Customers' demand for green, low-carbon solutions
out in advance in areas such as green technology research
Market risks is increasing; Higher demands for green supply chains
and development and green supply chains to meet customer
may affect market share
Promote the implementation and market demands
of climate change management
Stakeholders are increasingly concerned about a
measures in accordance with company's performance in responding to climate We will continue to enhance our capacity to address climate
climate change strategies Reputational change. If we fail to actively engage in climate change change, strengthen the monitoring of negative public
risks response actions, we may fail to meet local regulatory opinions, proactively follow up on rectifications, and reduce
requirements and stakeholder expectations, thereby the negative impact on the surrounding environment
damaging its own image and reputation
Strategy Focus on the development of new energy-specific products,
New energy installations such as wind, solar and
build a distribution network with new energy as the main
energy storage have continued to grow, and demand
body, enhance the shock resistance, fatigue resistance and
for our smart distribution, low-voltage components
LAZZEN has always adhered to the concept of green development, making the gradual reduction of carbon emission Product
and other products has increased
protection level of equipment, and form a technological
and service barrier
intensity a long-term strategic direction, and has always been committed to optimizing the energy structure and opportunities The construction of Zero Carbon plants in various
Opportunities The Hangzhou Bay Mega Factory builds a Zero Carbon
increasing the proportion of clean energy in our overall energy consumption. In addition, through technological regions is accelerating, and the demand for supporting
demonstration project, has formed comprehensive energy
solutions is increasing
upgrades and equipment renovations, energy utilization efficiency is enhanced and carbon emissions in the service capabilities, and can export solutions externally
production process are reduced. LAZZEN Hangzhou Bay Mega Factory has been built into a leading Zero Carbon
demonstration plant in China. In the future, the Shanghai Base will undergo Zero Carbon transformation and Opportunities
Improving energy efficiency in LAZZEN's operations
Develop corresponding energy-saving and consumption-
for energy reducing renovation plans for key energy-consuming systems
upgrading, and the Zero Carbon plant solution will be fully promoted to contribute LAZZEN wisdom to sustainable utilization
can help reduce our resource expenditure
and continuously carry out energy-saving dispatching work
development.
Impact, risk and opportunity management Green electricity consumption
By proactively purchasing green
LAZZEN continues to accelerate the green transformation, strengthen the research and development of green
electricity certificates, we have
ecological technologies, layout the new energy market, provide customers with energy-efficient products and low-
significantly increased the
carbon solutions, and empower the harmonious coexistence of man and nature.
proportion of renewable energy
in our electricity consumption
Management measures of LAZZEN in response to climate change structure and directly reduced
indirect carbon emissions from
purchased electricity. In 2025, we
Green products purchased a total of 6,177 green
certificates, corresponding to a
consumption of 6,177 MWh of green
Our green innovation R&D layout covers multiple aspects such as materials, structures, and performance,
electricity.
and optimizes and improves high-energy-consuming process equipment and energy-saving algorithms Green electricity certificate trading credentials
through new processes, new technologies, new equipment, and new energy sources. We incorporate green
ecological design concepts into its product design, conduct full life cycle evaluations of its products, and
continuously optimize in areas such as lightness and low-carbonization. Our products have been awarded
the title of Green Design Product by the Ministry of Industry and Information Technology. Case Product carbon footprint certification
LAZZEN has completed carbon footprint
calculation for a core product (1-pole NDB2-
Cleaner production 63 miniature circuit breaker) in accordance
with the international standard ISO 14067
We advocate a green operation concept, promotes a low-carbon lifestyle, and always implement the and has obtained an authoritative third-party
ecological and environmental protection concept in production and business activities. In the production verification certificate, which lays the foundation
process, we use advanced Italian fully automatic micro-break assembly lines and Asia's third automatic for quantifying the environmental impact of the
electroplating silver production line to reduce the generation of industrial solid waste and the harmfulness of product and identifying key links for emission
solid waste, creating a "dark factory" model to achieve energy conservation and consumption reduction. reduction.
Carbon footprint verification certificate for the 1-pole
NDB2-63 miniature circuit breaker product
Green office
LAZZEN encourages employees to implement environmental protection measures, implement paperless
work, and complete meeting notifications, schedule management, expense reimbursement, etc. through OA Case Product Life Cycle Assessment (LCA) Verification
electronic processes, further reducing the environmental burden and contributing to the protection of the
ecological environment.
LAZZEN has completed LCA verifications for several
major product lines, providing scientific decision-
Verification Statement Verification Statement
making basis for eco-design, material selection and
Registration No.: LCA- T?V Rheinland -2026-01-002 Registration No.: LCA- T?V Rheinland -2026-01-001
process optimization through systematic assessment
Report No.: CN26U59N 001 Report No.: CN26H3XX 001
Statement Holder: Shanghai Liangxin Electrical Co., Ltd. Statement Holder: Shanghai Liangxin Electrical Co., Ltd.
New energy product research and development
No.2000, Shenjiang South Road, Pudong New District, Shanghai No.2000, Shenjiang South Road, Pudong New District, Shanghai
City, P.R.China City, P.R.China
of the environmental impact at each stage from raw
Verification Site: Liangxin Electrical (Haiyan) Co., Ltd. Verification Site: Liangxin Electrical (Haiyan) Co., Ltd.
No.1799 Changqian Road, Xitangqiao Street, Haiyan County, No.1799 Changqian Road, Xitangqiao Street, Haiyan County,
Jiaxing City, Zhejiang Province, P.R.China Jiaxing City, Zhejiang Province, P.R.China
material acquisition to product disposal, and driving
Product: Miniature Circuit Breaker Product: Miniature Circuit Breaker (NDB2-40)
(NDB2-63(1-4P); NDB2T-63(1-4P); NDB2-63K)
Environmental
Details in the Appendix
Environmental Indicators:
Details in the Appendix
Indicators:
LAZZEN adheres to the principle and concept of "Fully investing resources and designing for 25 years of use" green product innovation.
Verified acc. To: ISO 14064-3:2019; ISO 17029:2019
Verified acc. To: ISO 14064-3:2019; ISO 17029:2019
Verification Scope details are listed on the next page
Verification Scope details are listed on the next page
The defined verification program has been executed based on information provided to T?V
in new energy research and development. Anchor the innovation points of new energy product research and
The defined verification program has been executed based on information provided to T?V Rheinland (Shanghai) Ltd. The statement refers to the above-mentioned product and is
Rheinland (Shanghai) Ltd. The statement refers to the above-mentioned product and is based on a verification of information and records provided by the applicant. It was verified
based on a verification of information and records provided by the applicant. It was verified that the claims defined by the verification statement holder are substantiated by
that the claims defined by the verification statement holder are substantiated by documented evidence and possible onsite observation. The verification statement does not
documented evidence and possible onsite observation. The verification statement does not imply any testing of a product nor does it express any warranty, guarantee or other
development, focus on customized product development, simplify the R&D process to focus on key points,
imply any testing of a product nor does it express any warranty, guarantee or other assurances of the above product. The statement does not imply the assessment of the
assurances of the above product. The statement does not imply the assessment of the production of the product. Nor does the verification include review of external
production of the product. Nor does the verification include review of external communication. If new facts or information that could materially affect the verification
communication. If new facts or information that could materially affect the verification statement are discovered by the statement holder after the issue date, this shall be made
statement are discovered by the statement holder after the issue date, this shall be made available to the Verification body.
pay attention to multi-sample reliability testing, in the process of new product development, go deep into
available to the Verification body.
Valid until: 2028-03-02
Valid until: 2028-03-02
Issue Date: 2026-03-03 __________________________________
Issue Date: 2026-03-03 __________________________________
customer usage scenarios, continuously interact with customers for testing, discover and solve problems in
T?V Rheinland (Shanghai) Co., Ltd., China T?V Rheinland (Shanghai) Co., Ltd., China
the process to achieve high volume upon market launch. Page 1 of 11 Page 1 of 3
LCA Verifications for miniature circuit breakers (NDB2-40, NDB2-63(1-4P), NDB2T-63(1-4P), NDB2-63K)
Case Facilitating new energy project construction Azerbaijan Khizi-Absheron Wind Power project
Project Capacity: 240MW
LAZZEN continues to provide more advanced and reliable smart electrical solutions for global customers,
jointly building a clean, low-carbon, safe and efficient future energy system. LAZZEN is deeply involved With a total capacity of 240MW, the project is
in the construction of many major wind power and energy storage projects both at home and abroad. Azerbaijan's largest single wind power project,
With key products such as dedicated electrical solutions for wind power and core circuit breakers on the generating about 1 billion kWh of electricity
DC side of energy storage, we provide core electrical support for the efficient power generation of wind annually, saving about 220 million m3 of natural gas
power projects and the safe and stable operation of energy storage systems, facilitating the large-scale annually, and reducing carbon dioxide emissions by
development of clean energy and the efficient consumption of power grids. By continuously empowering more than 400,000 tons annually
the implementation of Zero Carbon energy scenarios such as wind power and energy storage, LAZZEN
continuously promotes the substitution of traditional fossil energy, effectively reducing carbon emissions
across the entire industrial chain from the energy supply side.
Mengnengzhongqi 1.5 million kW wind storage Base project
Huaneng Shandong Peninsula North Offshore Wind Projec
Project Capacity: 1.5GW
Project Capacity: 504MW When fully operational, the project is expected to
generate 5.44 billion kWh of electricity annually,
Once completed and put into operation, the project will
reducing the burning of 1.64 million tce each year
generate about 1.7 billion kWh of electricity annually, which
can meet the annual electricity demand of about 500,000
households, saving about 500,000tce and reduce carbon
dioxide emissions by 1.35 million tons each year at the same
time
Goldwind 20MW offshore wind project
Indicators and goals
Project Capacity: 20MW LAZZEN conducts annual greenhouse gas audits and sets corresponding climate
Compared with offshore wind farms that use 16MW units, change targets based on the national "dual carbon"goals. At present, LAZZEN
save sea area, spread out development costs, and remove the carbon neutrality path. The document will systematically set out our carbon
economic bottlenecks for the large-scale development of neutrality vision, strategic path, phased goals and implementation roadmap, aiming
deep-sea wind power. The GW147 blades used in 20MW units to unify our action plan internally and transparently display our commitments and
Carbon Sink Offset
are made of high-modulus carbon fiber materials, significantly plans externally. Certificate
improving aerodynamic efficiency. Combined with an intelligent control system, the power
generation efficiency can be increased by 5%, and the value cost per kilowatt-hour of the project can
be reduced by 5% to 8%
Sunpro Wind Farm, Vietnam
Project Capacity: 30MW
Once operational, the project will generate approximately
electricity needs of about 27,000 local households and Shanghai LAZZEN ISO14064 GHG Verification Hangzhou Bay Mega Factory GHG Verification Carbon Neutrality
Statement Statement Verification Statement
effectively reduce GHG emissions
During the reporting period, LAZZEN purchased a total of 1,126 Verified Carbon Units (VCUs) to offset
greenhouse gas emissions and achieve carbon neutrality.
Disclosures Units 2025 Environmental Compliance Management
LAZZEN strictly adheres to national environmental protection laws, regulations and rules such as the Environmental
Scope 1 GHG emissions tCO2e 780.34 Protection Law and the Environmental Impact Assessment Law, continuously improves the environmental
management system, optimizes the supporting organizational structure, clearly defines the environmental
Scope 2 GHG emissions tCO2e 20,986.29 management responsibilities at all levels, and comprehensively enhances our environmental compliance
management capabilities.
Governance
Total GHG emissions tCO2e 21,766.63
GHG emission intensity tCO2e / CNY 10,000 0.0511
LAZZEN has developed internal environmental management
documents such as the Environmental Occupational Health and
Safety Management System, Environmental Management Policy,
Calculation method:The emission factors for fossil fuels are adopted from the 2006 IPCC for National Greenhouse Gas Inventories. The emission factors
Environmental Factor Identification and Evaluation Management
used for purchased electricity are from the Announcement on Issuing the 2003 Power Sector Carbon Dioxide Emission Factors issued by the Ministry
Procedure, Wastewater Discharge Management Procedure, Exhaust
of Ecology and Environment and the National Bureau of Statistics of China. The emission factors used for purchased steam are based on the steam Gas Discharge Management Procedure, Emergency Preparedness
enthalpy table in the Calculation Method and Reporting Guidelines for Greenhouse Gas Emissions of Enterprises in Other Industrial Sectors in China. and Response Management Procedure, and has established an
Calculation boundary:The data covers the Shanghai Factory and the Hangzhou Bay Mega Factory. environmental management framework.
The data on Scope 2 GHG emissions disclosed in the table is based on location. The Scope 2 GHG emissions for the year 2025, based on the market (after
At present, LAZZEN has passed the ISO 14001 environmental
deducting the green certificate purchase volume), were 7,773.40 tCO2e. management system certification.
ISO 14001 Environmental Management System Certification
Strategy
LAZZEN fully implements ecological and environmental protection management measures, scientifically plans
and implements environmental compliance management system, and continuously enhances the comprehensive
effectiveness of our environmental compliance governance by conducting environmental risk factor identification
and strengthening pollutant and waste discharge requirements. In addition, we actively conduct environmental
protection training and activities, and enhance the environmental awareness of employees through regular
environmental protection promotion.
Impact, risk and opportunity management
LAZZEN has established institutional documents to address environmental compliance risks, such as the Emergency
Response Plan for Sudden Environmental Incidents, Emergency Preparedness and Response Management
Procedure, Incident Investigation and Handling Management Procedure, Risk and Opportunity Management
Procedure, Corporate Environmental Analysis Management Procedure.
LAZZEN has established the Emergency Response Team (ERT) led by the EHS Safety Committee, consisting of the
heads of relevant departments or specific personnel designated by each department. Each department regularly
fills out and submits the Risk and Opportunity Identification Evaluation Form, commissions a third party to conduct
environmental tests on the company and produce reports, and continuously optimizes the management of
environmental compliance, energy resources and other environmental protection links.
To ensure the legal and compliant operation, LAZZEN conducts regular risk assessment for environmental
management. We use professional environmental risk assessment tools and methods to quantitatively assess each
environmental compliance risk point, determining the probability of its occurrence, the potential impact, as well as
the types and severity of consequences of environmental accidents that may be triggered. This help us identify the
focus and priorities of our environmental management work and formulate corresponding response measures.
During the reporting period, we identified new environmental risk factors, including electromagnetic radiation from Risk analysis on environmental accidents
the test station, dust from PCB cutting in the electronic workshop, filter material replacement in the exhaust gas
treatment facility, dust from laser grinding and metal dust from copper plate cutting. We have formulated control
measures for each of these factors, such as regular detection and external shielding for electromagnetic radiation, Types of
collection and cleaning of dust, and harmless outsourcing disposal of waste filter material. environmental Specific environmental events Environmental impact and risk response
events
Environmental compliance risk assessment at LAZZEN
Excessive sewage discharge If an accident occurs at the wastewater treatment station in the
Sudden
Sewage pipe leakage causing river factory area, the untreated industrial wastewater will be directly
Categories Content environmental
pollution discharged into the Jiaxing United Sewage Treatment company,
incidents of water
River accident which will cause pollution. Therefore, environmental emergency
Regulatory Policy review: Conduct a comprehensive review and interpretation of new or pollution
Large-scale sewage system leakage drills will be conducted.
revised national and local environmental laws, regulations, policies and standards on an
annual basis, with a focus on regulatory changes that may have a significant impact on the
Regulatory company's production and operation activities.
review If the operation is not stopped and repaired in time, the
Sudden
Preliminary Risk identification: Based on LAZZEN's business scope and operational model, Fan failure concentration of exhaust emissions will increase several times,
environmental
initially identify potential environmental risk areas from the perspective of legal compliance, End-of-pipe treatment device potentially causing poisoning of personnel and potentially
incidents of air
and compile potential risk points into a list as the basis for subsequent in-depth assessment. failure affecting further downwind. Replace the relevant equipment in a
pollution
timely manner to prevent it from failing.
EHS Quantitative assessment: The EHS department conducts a quantitative assessment of each
identification risk point to determine the likelihood of its occurrence, the extent of potential impact, and the
eakage of environmental
L
assessment types and severity of consequences of environmental incidents that may be triggered. hazardous substances and solid
If a solid waste leakage occurs within the factory premises,
Sudden emergency treatment can be carried out by closing the rainwater
waste during transportation
Cross-departmental communication and collaboration: The EHS department provides environmental outlet valve, opening emergency facilities such as the emergency
Leakage of environmental
detailed briefings and training on risk assessment results and response plans to all incidents of soil pool, and using emergency supplies such as sand, cotton cloth,
hazardous substances and solid
pollution etc., to control the impact of the leakage within the factory
departments within the company, organizes cross-departmental communication meetings, waste during storage
premises.
Internal and participates in environmental risk management together.
synchronous
communication Day-to-day operations management: Integrate the environmental risk assessment results and
response measures into the day-to-day operations management system of the company, from
LAZZEN conducted environmental emergency drill
strategic planning, production planning, purchasing decisions to performance assessment,
and develop corresponding risk control indicators and operating procedures. On September 3, 2025, we conducted
a n e m e r g e n c y d r i l l f o r e xce s s i v e
wastewater and waste gas. Through
LAZZEN has established an environmental compliance emergency management system based on systems such as
this drill, our emergency response
the Emergency Plan for Sudden Environmental Incidents, and has set up an emergency rescue organization. We
capacity for sudden environmental
have established an environmental risk prevention, control and emergency response, as well as a regular inspection
incidents was enhanced, the multi-
and maintenance responsibility system. We implement corresponding prevention and emergency measures for all
department collaboration mechanism
environmental risks specified in the environmental impact assessment and approval documents of construction
was strengthened, the division of
projects, we also conduct publicity and training on environmental risks and environmental emergency management
responsibilities was clarified, and it
for employees more than twice a year, and carried out emergency drills for sudden environmental incidents.
helped to enhance the environmental
awareness and emergency skills of
LAZZEN emergency response system
personnel.
Shanghai Liangxin Electrical Co.,LTD. & Liangxin Electrical (Haiyan) Co., LTD. Comprehensive Emergency Plan for Safe Operations
Special Emergency Plan for Special Emergency Plan for Special Emergency Plan for Typhoon
Sudden Accidents Fire Accidents and Flood-related Natural Disasters
Indicators and goals Resource Management
LAZZEN 2025 environmental compliance indicators and goal setting and achievement status LAZZEN continuously optimizes resource and energy management system, reduces losses and waste at all stages
of energy consumption, pays attention to the recycling of water resources, adopts various water-saving measures,
prioritizes the use of green packaging materials, promotes resource recycling and utilization measures, and
Serial
Environmental compliance indicators and goal settings for 2025 Achievement status comprehensively enhances the utilization rate of resources and energy.
number
LAZZEN include electricity, natural gas and steam,
consumption. We conduct energy management in
the Energy Conservation Law, the Energy Law, the
established and promulgated and implemented energy
management systems such as the Energy Management
Manual, Energy Risk Management Measures, Energy
Review Management Procedures, Energy Measurement
Management system, etc., forming a complete energy
management system. LAZZEN has obtained the ISO 50001
ISO 50001 Energy Management System Certification
During the reporting period LAZZEN implements a hierarchical energy management system, establishes an energy management team, and holds
energy management meetings in a timely manner based on the relevant energy conservation targets set by LAZZEN
to analyze the extent to which the operation of related disposal processes and equipment affects the comprehensive
LAZZEN's total environmental investment amounted to CNY 0.7 million. energy consumption per unit of product. The relevant departments establish ledgers of key energy-consuming
equipment based on equipment model, power, operating time, loss situation, etc., and monitor them effectively.
LAZZEN has not been fined for any major administrative penalties imposed by ecological
To enhance energy management efficiency, LAZZEN has actively carried out energy management system audits.
environment and other relevant departments due to environmental incidents. During the reporting period, we analyzed the energy utilization situation of the enterprise, determined the energy
utilization level, and identified the problems and loopholes existing in the energy management and utilization
The total number of employees participates in environmental training was 3,550 person-times, process. Through on-site detection and diagnosis, the potential for energy conservation of the enterprise was
and the total duration of environmental training was 7,100 hours. explored, and practical energy-saving measures and suggestions were proposed, thereby strengthening the energy
management level of the company and reducing energy utilization costs.
LAZZEN has formulated Regulations for the Management of Process Chiller Rooms, Regulations for the Management
of High and Low Voltage Rooms, and Regulations for the Management of Air Compressors, standardizing equipment
usage and emergency response plans, and focusing on improving equipment utilization efficiency. During the
reporting period, LAZZEN systematically phased out backward and high-energy-consuming equipment through
technological transformation and equipment upgrading, introduced efficient and energy-saving advanced
production equipment and technologies, freed up 119 tce energy space, achieved a continuous reduction in energy
consumption per unit of output value, and reduced energy consumption and carbon emissions from the source.
To ensure stable energy supply, stable prices and the sound operation of energy enterprises and industries, LAZZEN
has formulated management systems such as Energy Risk Management Measures and Risk and Opportunity
Management Procedures, and further strengthened our ability to deal with energy management risks by
implementing energy conservation and carbon reduction measures. LAZZEN regularly implements energy monitoring
and analysis systems, energy quota allocation, and real-time adjustment of production plans and scheduling in
accordance with relevant policies, thereby further strengthening our risk resilience in energy management.
In response to risks such as energy shortages, LAZZEN has developed full-process response plans. Activate the real-
time monitoring function of the energy management system to closely monitor the consumption of various types
of energy and energy usage data. Assign dedicated personnel to conduct regular inspections of energy metering
instruments and report any anomalies in a timely manner. In addition, LAZZEN organizes professional maintenance
teams to inspect energy equipment that ensures safe production and involves key production processes to avoid
exacerbating energy supply tightness or causing safety accidents due to equipment failure, and provides emergency
power supplies for key equipment. LAZZEN also conducts regular emergency drills for energy shortages, formulates
corresponding risk prevention and control measures for various safety risks, strengthens on-site safety management
and monitoring to ensure the safe and stable use of energy.
Improvement measures for energy use in 2025
Microgrid management system Air conditioning smart control management system
Photovoltaic power grid connection
Indicators and goals
The Hangzhou Bay Mega Factory has built 4.695MW of photovoltaic power generation in three
phases by using rooftop photovoltaic systems to increase the proportion of self-consumption of
photovoltaic power and reduce the amount of power purchased by power supply bureaus.
The energy goal set by the Hangzhou Bay Mega Factory is 0.0189 tce / CNY 10,000. Achievement status: achieved.
Park energy storage project
Disclosures Units 2025
The park has added 4.75MW of large-scale energy storage facilities. The principle of two charge and
two discharge per day (charging during off-peak hours and discharging during peak hours) reduces Comprehensive energy consumption tce 5,039
electricity costs.
Comprehensive energy consumption intensity tce / CNY 10,000 0.0118
Natural gas m? 82,332
The exhaust system operation
Gasoline Liter 29,589
enovation of the automatic control system of the exhaust fan, new remote start-stop and timed
R
on/off functions
Enable timed start-stop of the exhaust fan based on the production situation of each workshop, Purchased steam tons 1,026
thereby saving electricity
Install air pressure control frequency on the exhaust fan, save electricity by using air pressure to Purchased electricity MWh 39,028
automatically control the frequency of exhaust fans
Direct energy consumption tce 142
Central air conditioning energy saving smart control Indirect energy consumption tce 4,897
With the smart control project system, set the automatic on/off time based on the sensor and user- Usage of clean energy MWh 5,526
set temperature, and automatically adjust the most economical load operation status based on the
actual load operation.
* The data cover the Shanghai Factory and the Hangzhou Bay Mega Factory, the conversion coefficients of natural gas, steam,
gasoline and electricity to standard coal are converted to 20° C kcal in accordance with GB/T 2589-2020 General Rules for
Comprehensive Energy Consumption Calculation.
In addition, to improve energy efficiency and promote transparency in energy management, we installed an
intelligent power distribution platform system and built a smart energy management platform. The system is mainly
based on industrial internet technology and is interconnected with smart park, digital twin, MES and other systems.
It has functions such as measurement data, operation and maintenance management, energy consumption analysis,
energy consumption display, system configuration, etc. It adopts a hierarchical distributed system architecture to
collect real-time data on electricity consumption of each energy-consuming unit in the factory area and issue early
warnings for abnormal situations. The cumulative data information is statistically analyzed to provide effective data
support for the implementation of energy conservation and consumption reduction.
Water resources management
Rainwater recycling
LAZZEN always adhere to laws and regulations such as the Water Law of the People's Republic of China, adhere to the
principle of sustainable development, and attaches great importance to the rational application of water resources. Consider launching a rainwater collection pool project that, once initiated, would reduce reliance
LAZZEN has established systems such as Water Metering Management System, Water Conservation Statistics System, on traditional municipal water supply systems and provide a stable and sustainable water supply for
Water Conservation Management Reward and Punishment System, and Regular Maintenance System for Water landscaping, toilet flushing, and floor cleaning in the dry season. In addition, through the recycling
Conservation Equipment, Pipelines and Appliances, and has set up a three-level water conservation management of rainwater, pollution to natural water bodies is reduced.
network of company leaders, departments, workshops and teams, and adopted measures such as "daily inspection,
end-of-month assessment, reward and punishment implementation" to effectively guarantee the implementation of
water conservation work responsibilities. LAZZEN has also established a water conservation creation work leading
group, which organizes three major water conservation work inspections each month to identify violations and water
usage risks, and promptly corrects or sets deadlines for rectification. Use water-saving valves
LAZZEN's water resources are mainly drawn from municipal water supply and are mainly used for replenishing the The water valves in the workshop restrooms were retrofitted with water-saving valves, reducing fresh
cooling circulation system, preparing pure water, and domestic water. Since a large amount of water used by the water intake by an average of 4,000m3 per year.
company is lost through evaporation, the rate of water reuse is high and the amount of water discharged is small.
LAZZEN uses highly efficient circulating water cooling towers to reduce water consumption. We encourage every
member to use water rationally and work together to reduce overall water consumption. LAZZEN actively uses
rainwater recycling and sewage diversion technologies to minimize water waste and environmental pollution and Use a remote monitoring system for water metering
ensure that all operations comply with strict environmental regulations.
By deploying a remote water metering monitoring system and installing smart water meters in
To enhance the effectiveness of water conservation management, we have specially formulated the "Annual the factory area and each branch, real-time monitoring and centralized management of water
Water Conservation Work Plan", fully implemented water conservation measures, formulated water conservation consumption can be achieved. The system successfully identified and fixed multiple leakage
implementation plans, and established a long-term mechanism for water conservation work, which has played a points, effectively reducing water consumption, its intelligent alarm function can promptly identify
guaranteeing role in the effective implementation of water conservation work. abnormal water usage, avoiding waste of resources and economic losses. At the same time, the
accuracy and analyzability of water usage data are guaranteed by timely replacement of faulty water
meters and standardized installation of new ones.
Reuse of electroplating cleaning wastewater
The electroplating workshop has adopted counter-current rinsing for secondary reuse of wastewater.
Currently, an industrial wastewater filter has been purchased to recycle the cleaning wastewater in
multiple stages, increase the reuse rate of wastewater, reduce the daily pure water replenishment
volume, and can process 6 tons of wastewater per day to meet the reuse standards. The wastewater Pipe inspection
from the electroplating workshop is treated at the wastewater treatment station and the recycling
Inspect the piping in the park to identify leaks and reduce the risk of leaks.
rate is 50%.
Intelligent control transformation of the air conditioning system
LAZZEN's largest water consumption unit is the air conditioning refrigeration system. The cooling
Indicators of water usage
tower has adopted the more advanced closed cooling tower, the intelligent management system
has been installed on the ventilation system, and partitions have been added in the office and
production areas to avoid the waste of cooling capacity, reduce the circulation volume of the cooling Disclosures Units 2025
tower, and achieve better water and energy conservation effects.
Municipal water purchase volume tons 258,605
Water conservation publicity and education Total volume of circulating water/reclaimed water tons 4,052
Carry out extensive water conservation education campaigns through various forms such as hanging Total water withdrawal tons 262,657
water conservation slogans and holding water conservation knowledge lectures to popularize water
conservation knowledge and raise water conservation awareness among all employees, produce Total water consumption tons 25,610
water conservation posters, distribute water conservation handbooks, etc, actively organize water-
saving practices and encourage employees to take water-saving measures in their daily lives, set up Water usage intensity tons/ CNY10,000 0.6166
model posts for water conservation pioneers, strictly enforce the system of rewarding and punishing
individuals or departments for water conservation. * Data cover the Shanghai Factory and the Hangzhou Bay Mega Factory
Material resource management Pollutant Emissions
LAZZEN is committed to using environmentally friendly innovative materials and recyclable raw materials, and
LAZZEN complies with laws and regulations such as the Environmental Protection Law, the Law on the Prevention
actively guides suppliers to provide environmentally friendly products, aiming to minimize environmental pollution
and Control of Water Pollution, the Law on the Prevention and Control of Air Pollution, the Law on the Prevention
to the greatest extent. On the journey of sustainable development, we are committed to the rational use of raw
and Control of Soil Pollution, the Law on the Prevention and Control of Noise Pollution, and the Measures for the
materials and strive to minimize the production of waste and waste.
Administration of Pollutant Discharge Permits, and implements pollutant discharge management in accordance
LAZZEN has established management systems for material with the pollutant discharge standards and total discharge control indicators prescribed by the industry. During the
resources such as the Product Material Scrap Management reporting period, there were no cases of excessive pollutant emissions.
System, Waste Management Procedures, Management Measures
In accordance with the requirements of the system and the pollutant discharge permit, LAZZEN has established
for the Prevention and Disposal of Idle Materials, and Operation
pollutant discharge management procedures such as Wastewater Discharge Management Procedure, Waste Gas
Instruction for Waste Disposal Processes, and has established a
Discharge Management Procedure, and Noise Discharge Management Procedure. The sewage treatment plants
recycling system for raw materials and packaging materials, taking
and various waste gas treatment facilities built by LAZZEN conduct self-monitoring in strict accordance with the
the initiative to assume responsibility for the recycling and resource
requirements of the pollutant discharge permit, and will entrust qualified third-party monitoring institutions to carry
utilization of products after discarded. Effective circulation of waste
out environmental monitoring related work. In addition, LAZZEN conducts risk assessment and analysis of pollutant
products among production enterprises, consumers, recycling
emissions, formulates corresponding risk response measures, and continuously strengthens the management and
enterprises and dismantling enterprises. All the raw and auxiliary
monitoring of pollutant emissions.
materials required for turnover by the company department are
transported by environmentally friendly and energy-saving electric LAZZEN has established a green manufacturing management system team, which is mainly responsible for improving
trolleys, the turnover equipment is reusable plastic boxes, and the energy efficiency of facilities and equipment, photovoltaic project construction, etc. We implements the clean
the pallets are reusable high-density plastic pallets, the front and production concept, prioritizes the use of non-toxic and low-toxic raw materials, and uses water-based paint instead
back processes and product entry are all fully automated conveyor RoHS and recyclable marks on the outer of oil-based paint for anti-corrosion spraying of circuit boards, significantly reducing the emissions of VOCs, xylene
system sorting and stereoscopic warehouse storage, reducing packaging of LAZZEN's products and acetone. In addition, we have formulated the management document Cleanroom Usage Specifications to adopt
the use of corrugated paper in the process and implementing the clean production processes, select advanced environmental protection supporting equipment, avoid unorganized
concept of green packaging materials. emissions of smoke and dust in the welding process, replace the original oil-based ink printing machine with a laser
printing machine, and significantly reduce pollutant emissions from the printing process.
Circular economy Serial
Pollutants Emission goals Achievement status
Numbers
LAZZEN builds a full-process circular economy treatment system around idle materials, scrap and used products,
effectively promoting resource recycling and sustainable development through multi-link resource utilization: 1 Wastewater Wastewater discharge reuse reaches 40% to 60% Achieved
For the idle materials and scrapped products, we adopt processing methods that comply with the concept of circular 2 Waste gas Harmless treatment of waste gas pollutants Achieved
economy, such as disassembling and recycling of components and selling discounted inventory materials. The
scrap products that can be sold are sold in accordance with the Operation Instruction for Waste Disposal Process. Noise detection across the entire plant is less than 60
After the used products enter the waste dismantling department for dismantling, they are classified according to 3 Noise Achieved
decibels during the day and less than 50 decibels at night
the component attributes and recycled and reused by specialized third-party institutions, promoting the circular
economy model.
Disclosures Units 2025
Waste recycling volume tons 220
Water recycling volume tons 4,052
Wastewater treatment Key performance: Wastewater control
LAZZEN has formulated Wastewater Discharge Management Procedure to implement classified collection,
A total of 12 tests were conducted in 2025, and both wastewater and stormwater outlets met the
differentiated treatment and full-process control of production and domestic wastewater. The production
wastewater mainly includes electroplating wastewater, acid-base wastewater, cleaning wastewater, exhaust gas special discharge standards of the Electroplating Pollutant Discharge Standard GB 21900-2008.
spray wastewater, RO concentrate water and initial rainwater, among which cyanide-containing and silver-containing
wastewater is preferentially recovered at the tank side to achieve the resource utilization of precious metals. The
recovered wastewater, after special pretreatment, partially enters the reclaimed water reuse system and partially
flows into the comprehensive treatment system. Other production wastewater, after pretreatment processes such as
Exhaust gas treatment
neutralization, coagulation and adsorption based on water quality characteristics, is diverted to reuse or integrated
treatment systems according to water quality compliance. Domestic sewage is treated in septic tanks and then LAZZEN has formulated the Exhaust Gas Emission Management Procedure and conducted risk management on
connected to the municipal network. exhaust emissions. We have developed a series of risk response measures in response to the risk of excessive exhaust
Through a dual mechanism of regular self-monitoring and annual third-party emissions. According to the environmental protection acceptance monitoring by professional third-party institutions,
testing, LAZZEN continuously verifies the compliance of its discharge to ensure that all indicators related to the company's exhaust gas meet the emission standards.
the wastewater, after advanced treatment, is stably discharged up to standard. All
indicators over the years have significantly exceeded the limits of the Integrated LAZZEN's measures to deal with the risk of excessive exhaust emissions
Wastewater Discharge Standard.
LAZZEN is committed to steadily enhancing the level of water resource recycling Establish a daily operation and
Carry out regular self-
Strengthen environmental
maintenance system for waste management and emergency
and utilization. Through measures such as reclaimed water reuse, cleaning water monitoring
gas treatment facilities response measures
recovery, and grinding fluid regeneration, we effectively reduce the amount of
wastewater discharged per unit product. Among them, the wastewater discharge
Equip professional operation and In accordance with the Strengthen environmental
per unit area of the electroplating line was reduced from 0.25 tons/m3 to 0.23
maintenance personnel to conduct requirements of relevant management of the production
tons/m3. The reuse of silver plating cleaning water not only reduces the use of regular inspections, maintenance national standards, regularly process, optimize production
cyanide but also enables the recycling and reuse of silver resources. The grinding and repairs of the facilities, replace commission qualified third-party processes, and reduce the amount
water recovery system reduces wastewater treatment by about 6 tons per day, vulnerable parts in a timely manner, testing institutions to conduct of waste gas produced. Develop
with a recovery rate of over 60%. The electroplating workshop has implemented record the operation parameters comprehensive tests on exhaust contingency plans for excessive
and maintenance conditions of gas to ensure the accuracy and emissions of waste gas, such as
a process transformation for the wastewater from heavy metal cleaning that was
the facilities, and ensure that the reliability of the monitoring reducing production load and
not recovered, adding coagulation sedimentation and resin adsorption before facilities are always in good operating data, and adjust the exhaust gas increasing the dosage of waste
entering the reclaimed water reuse system, increasing the reuse rate by about 5%. condition. treatment process and facility gas treatment agents, and actively
Additionally, under the condition of meeting quality requirements, the frequency Wastewater treatment facilities
operation parameters in a timely cooperate with environmental
of discharge of cleaning water from the production line has been reduced by about manner based on the test results. protection departments in
investigation and handling.
reduced by 29.88%.
Disclosures Units 2025
LAZZEN implements classified collection and efficient treatment of various types of process exhaust gases generated
Total amount of wastewater discharge tons 237,047 during production, covering welding fumes, coating VOCs, ink volatiles, electroplating acid mists and cyanide-containing
exhaust gases, etc. By strengthening source capture through "One post, one mask" to ensure that all waste gas is collected.
Industrial wastewater discharge tons 3,315 According to the characteristics of different exhaust gases, appropriate combinations of technologies such as adsorption
Domestic wastewater discharge tons 233,732 and chemical spray are used for purification, and all exhaust gases are treated and discharged through 25-meter-high
exhaust stacks in a standardized manner.
Chemical Oxygen Demand (COD) tons 0.688
In 2025, we further strengthened the operation and maintenance management of waste gas treatment facilities,
Biochemical Oxygen Demand (BOD) tons 0 formulated strict maintenance plans, and entrusted third parties to regularly replace consumables such as waste activated
carbon and filter cotton, ensuring the continuous and efficient operation of the treatment system. At the same time, we
Suspended matter tons 0 actively promoted source reduction by promoting water-based environmentally friendly board washing water in the
electronic workshop, replacing high-VOCs organic solvent cleaning agents.
Ammonia nitrogen tons 0.001
During the reporting period, LAZZEN conducted four tests in accordance with the requirements of the pollutant discharge
Total Nitrogen (TN) tons 0.076
permit, and the concentrations of hydrogen cyanide and sulfuric acid mist gas were both lower than those stipulated in
Total Phosphorus (TP) tons 0.013 Table 5 of the Electroplating Pollutant Discharge Standard GB 21900-2008. Particulate matter emissions per unit output
decreased by 13.8% compared to the previous year , and VOCs emissions decreased by 47.92%. All emission indicators
pH - 6-9 met the requirements of relevant national and local standards.
Soil pollutants
LAZZEN regularly monitors and inspects soil conditions and focuses on soil pollution management. LAZZEN's
industrial wastewater pipe network is laid overhead with exposed pipes to prevent soil pollution caused by leakage
from underground pipe laying.
According to the environmental protection acceptance monitoring by professional third-party institutions, the soil
test concentrations in the area where the company is located are all lower than the screening value standards for the
second category of land use in Soil Environmental Quality - Risk Control Standards for Soil Pollution in Construction
Land (Trial) (GB 36600-2018).
Waste gas treatment facilities
Disclosures Units 2025 Waste Management
Total exhaust emissions m? 485,130,000
LAZZEN manages waste in compliance with laws and regulations such as the Law on the Prevention and Control of
Particulate matter kg 2 Environmental Pollution by Solid Waste, Pollution Control Standards for Storage and Landfill of General Industrial
Solid Waste, and Pollution Control Standards for Storage of Hazardous Waste.
Total non-methane hydrocarbons kg 816
Waste management governance
Nitrogen oxides kg 0
Sulfur oxides kg 0
VOC emissions kg 2,870 LAZZEN's current solid waste mainly consists of waste oil rags and
gloves, waste packaging materials of hazardous chemicals, waste
activated carbon, laboratory waste liquid, waste oil liquid, general
Noise management waste packaging materials, etc. LAZZEN has established Waste
Management Procedures and Waste Classification and Treatment
LAZZEN formulates and implements the Noise Emission Management Procedure, sets noise control targets at the Regulations, covering compliance treatment requirements and
factory boundary: ≤ 60 decibels during the day and ≤ 50 decibels at night, and ensures the continuous achievement procedures for general solid waste, hazardous waste, kitchen
of these targets through quarterly full coverage monitoring. During the reporting period, we completed a total of 4 waste, etc. LAZZEN guarantees that all waste is disposed of
factory boundary noise tests. According to the results of the third-party environmental acceptance monitoring, the legally and in compliance with regulations, without affecting the
factory boundary noise stably met the Class 2 standards of the Emission Standard of Environmental Noise at the surrounding environment and human health, and without causing National pollution source monitoring data
Boundary of Industrial Enterprises GB 12348-2008 throughout the year. secondary pollution. We regularly improve the management plans management and sharing system
for hazardous and solid waste for the next year and submits them,
To systematically reduce the impact of noise, we have adopted multi-dimensional control measures: which are confirmed and approved by the local environmental
protection department, and subsequent transfer of hazardous
Engineering noise waste is filled in the system platform.
Source control Layout optimization Ecological buffering
reduction
Doors and windows Concentrate high- Build soundproof Green belts are set up
are rarely opened noise workshops and stations in high-noise around the factory In 2025, the total disposal volume of general and hazardous waste at the Hangzhou
when the production equipment in the areas such as air boundary, and Bay Mega Factory decreased by 16.84% compared with the previous year, exceeding
workshop is operating middle of the factory compressor stations vegetation is used to the annual waste reduction target of 5%. And Haiyan LAZZEN passed the assessment
normally; We priorize area, away from the and refrigeration assist in absorbing of Zhejiang Province as a "Waste-Free Factory".
the use of advanced factory boundary, and stations, and equip and blocking noise
equipment such as keep workshop doors them with sound transmission,
ultra-low noise cooling and windows closed absorption, vibration enhancing
towers and low-noise during operation to reduction and environmental
screw air compressors reduce noise overflow. vibration reduction friendliness.
to reduce noise facilities to enhance
generation from the the overall sound
source. insulation effect.
"Waste-Free Factory" Certification
Waste management strategy Management measures of LAZZEN in response to the risk of hazardous waste leakage
LAZZEN disposes of solid waste in accordance with the principles of "resource utilization, reduction and
harmlessness", and fully implements the primary responsibility for environmental protection.
Waste disposal goals Improve management
systems
Strengthen personnel
training
Standardize the
classification and temporary
Establish and improve the Regularly organize hazardous storage of hazardous waste
Serial management system for waste management personnel The hazardous waste
Waste disposal goals Achievement status hazardous waste, and clarify to participate in professional
Number generated by LAZZEN should
the management process and training to familiarize them with be stored in separate zones
throughout the entire process the characteristics of hazardous should set up dedicated
disposal. packaging requirements, and ensure source classification,
The annual growth rate of the intensity of general industrial solid waste emergency response measures,
generation is negative or zero and enhance their risk prevention storage and prevent mixed
The annual growth rate of hazardous waste generation intensity is negative awareness and operational storage.
or zero
General waste
The general industrial solid waste generated by us, including plastics, packaging paper, plastic foam packaging
materials and metals, is recyclable waste. Each year, it is entrusted to a third-party company with professional
qualifications for sorting and utilization and disposal. The specific treatment process is as follows: the waste is
collected in workshop and transferred to the general solid waste warehouse, where is sorted and baled before being Optimize storage facilities Strict supervision of Establish an emergency
loaded and transported to the paper mills. transportation and disposal response mechanism
LAZZEN fully implements standardized management of solid Conduct a comprehensive Select qualified and Develop contingency plans
waste and relies on the solid waste management platform to inspection and upgrade of experienced hazardous for sudden environmental
implement full-process digital control. During the reporting hazardous waste storage waste disposal units, sign incidents and organize regular
period, the platform management plan fully covered all waste- facilities to ensure they meet detailed hazardous waste emergency drills.
generating links, the information filling rate reached 100%, national standards and disposal contracts, clarify
ensuring that the data was timely, true and traceable. The have good leak-proof, leak- the rights and obligations of
system operated stably and no warning events were triggered proof, rainproof and other both parties, and strengthen
throughout the year. At the same time, LAZZEN established clear functions. tracking and supervision of
and accurate solid waste management ledgers, detailing the the transportation process.
generation, storage, transfer and disposal of all types of solid Solid waste management platform
waste, and strictly implemented the electronic waybill system,
which was filled out in a standardized manner, with complete
content and orderly circulation. Disclosures Units 2025
Hazardous waste Total waste generation tons 259
Total hazardous waste generation tons 39
LAZZEN's hazardous waste includes waste cutting fluid, waste packaging materials for hazardous chemicals,
wastewater sludge, waste paint packaging drums, etc. LAZZEN signs hazardous waste disposal contracts with Total general waste generation tons 220
qualified third-party companies to handle hazardous waste every year, and the process is registered and verified in
Waste recycling volume tons 220
the national solid waste management system during the transfer of hazardous waste. We conduct risk management
for hazardous waste and formulate corresponding risk response measures for hazardous waste leakage, soil and
water pollution, and serious environmental pollution accidents that may occur during the collection, storage,
* Data cover the Shanghai Factory and the Hangzhou Bay Mega Factory
transportation and disposal of hazardous waste.
Chemical Management
LAZZEN attaches great importance to chemical safety and has established chemical management procedures such
as Chemical Management Procedures, Five Doubles Management System for Highly Toxic Chemicals (Explosive
Precursor and Precursor Drugs) in Electroplating Manufacturing Department, Safety Operating Procedures for
Hazardous Chemicals in Electroplating Manufacturing Department, and Safety Operating Procedures for Handling
and Loading/Unloading of Hazardous Chemicals in Electroplating Manufacturing Department.
? Storage of chemicals
LAZZEN controls the total storage volume of all applicable chemicals, and explosion-proof cabinets are installed at
the workshop usage points. LAZZEN has a hazardous chemicals warehouse where hazardous chemicals are classified
and zoned, and the processes from the entry and exit of chemicals to their use are strictly in accordance with the
requirements for the operation and management of highly toxic substances. LAZZEN requires personnel responsible
for the storage of highly toxic chemicals to have a general knowledge of handling highly toxic chemicals. In addition,
the storage management of highly toxic chemicals must strictly adhere to the "five doubles system", namely double-
person receipt and dispatch, double-person accounting, double-person double-lock, double-person transportation,
and double-person use.
LAZZEN's management of hazardous chemicals is directly connected to the Zhejiang Provincial Public Security
Organs Integrated Intelligent Governance Platform for Key Items (highly toxic chemicals). Through government
network management, LAZZEN insists on regular monitoring and reporting of safety hazards, actively accepts
government review, and reports self-inspection risk points on the safety production platform every month and
completes rectification in a timely manner.
First aid drill for acute poisoning from highly toxic substances
Biodiversity Conservation
Highly toxic chemicals network intelligent governance platform LAZZEN strictly adheres to laws, regulations and rules such as the Regulations on the Protection of Wild Plants. We
encourage employees to attach importance to ecological environment protection, actively conduct environmental
awareness campaigns, and are committed to promoting best practices for protecting animals, and strictly follows the
LAZZEN actively organizes training and assessment related to chemicals and highly toxic chemicals, conducts internal environmental compliance management system in the process of production and operation to minimize the
emergency drills for chemicals, and enhances employees' safety awareness and risk response capabilities. In 2025, negative impact on biodiversity and ecological environment.
LAZZEN carried out education and training on precursor chemicals and hazardous chemicals. In addition, the
electroplating workshop conducted first aid drills for the leakage and poisoning of highly toxic substances. These To effectively protect biodiversity, LAZZEN conducts strict ecological assessments during the project site selection
drills have enhanced safety management of the use and storage of highly toxic chemicals, improved emergency stage, actively avoids various ecologically sensitive areas such as ecological protection red lines and natural
response capabilities for sudden poisoning incidents, promoted multi-departmental synergy in the safety habitats, and minimizes the impact of development activities on the ecological environment. In the early stage of
management of highly toxic chemicals, and familiarized relevant units with the use of detoxification agents for acute the construction of the Hangzhou Bay Mega Factory, the regional ecological environment was determined to be
poisoning. insensitive and classified as a general development area.
Employee
Employee Rights
Employee Care
Talent Development
Occupational Health and Safety
Contributions to the United Nations
Sustainable Development Goals (SDGs)
Employee Rights By age
By region
LAZZEN strictly adheres to the Labor Law and other relevant laws and regulations, safeguards the legitimate rights
and interests of employees, continuously optimizes the compensation system, clarifies the promotion path and
training mechanism for employees, facilitates open communication channels for employees, provides various
employee benefits and organizes diverse activities, truly thinks what employees think, and enhances employees' Under 30 years old
satisfaction and sense of belonging.
LAZZEN promotes continuous innovation and business growth by formulating precise talent introduction and
Over 50 years old 1,899 Other countries and regions 2,650
effective talent management strategies. In the recruitment and employment process, We require all regular
employees to sign labor contracts in accordance with the law at the onboarding stage to protect the legitimate rights
and interests of both parties and to achieve the standardization and compliance of employment management. Our
recruitment and assignment follow the principle of "Meritocracy and ability first; mutual recognition and smooth As of the end of the reporting period, LAZZEN had 10 minority employees and 4 disabled employee, and continued
handover" ensures fairness and continuity of work; encourage employees to recommend suitable talents for us and to create an open, inclusive, equal opportunity and common development employment environment. During the
have corresponding reward rules. reporting period, we intensified our recruitment efforts, with 629 new employees recruited, an increase of 212
compared to the previous year.
Employee hiring strategy
Human rights protection
Strategy Module Specific measures
LAZZEN has established management systems such as the Human Resources Management System and the Social
We drive continuous innovation and business Attract industry experts through social recruitment Responsibility Management Measures, set up anti-discrimination regulations to eliminate unfair treatment, adheres
growth by formulating precise talent recruitment S
elect outstanding talents from industry-specific top to the principle of equal pay for equal work, strictly prohibits any form of discrimination, firmly resists the use of
and effective talent management strategies institutions through management trainee programs child labor and forced labor, safeguards the legitimate rights and interests of employees, and creates a fair, mutually
respectful and diverse working environment.
Committed to building internal and external talent maps and
talent pools Anti-discrimination and equal treatment
Talent Map Systematically manage and plan talent resources to ensure
that the company can continuously attract and retain key
LAZZEN is committed not to discriminate on the basis of race, ethnicity, regional or social origin, social class, origin,
talent religion, disability, gender, sexual orientation, family responsibility, marital status, group membership, political
opinion, age or any other circumstances that may cause discrimination, and to be impartial and objective in
Diversified hiring
handling matters related to employment, remuneration, training, promotion, dismissal or retirement. In addition,
we require suppliers and outsourcing parties to refrain from discriminatory practices and to supervise them in
accordance with the Supplier Development Management Procedure.
LAZZEN adheres to the principles of diversity, fairness and inclusiveness in employment, providing equal
employment opportunities to all job seekers. During the recruitment process, we don't discriminate based on
factors such as ethnicity, race, gender, age, religious belief, household registration, disability, marital status or Prohibition of child labor
family background. We strictly follow the standards of fairness, impartiality and merit-based selection, respecting
and embracing the individual differences and diverse backgrounds of employees. Committed to creating an open, The human resources department ensures that no child labor or underage workers are recruited when hiring. If
inclusive, equal opportunity, and mutually beneficial employment environment. it is found that we have used child labor, the human resources department is responsible for providing relief. The
purchasing department requires suppliers, subcontractors and sub-suppliers to sign commitments to eliminate the
use of child labor and protect underage workers.
By gender By type of employment 69 58
and avoid employing child labor:
ake it clear in the job advertisement or at the job fair that no child labor under the age of 16 will be hired
M
Labor contract system for any position.
Male Labor dispatch sk candidates to provide personal information such as their date of birth. Once a candidate is identified,
A
the human resources department must re-examine the candidate's ID card to ensure that the age meets the
Female 1,856 Others 2,525
requirements.
Prohibited of forced labor Employee satisfaction
LAZZEN is committed to eliminating all forms of forced labor, ensuring that employees are not physically punished, We completed the 2025 Employee Satisfaction survey in May 2025. A total of 1,281 valid questionnaires were
assault, searched or insulted. We maintain an unlocked workplace, ensure unrestricted freedom of movement, and collected in this survey, with an employee participation rate of 82.5%. The survey has a wide coverage and high
uphold the right of workers to leave the factory freely after work. participation rate, truly reflecting the voices and demands of employees.
The overall employee satisfaction score was 6.35 out of 7, and the overall employee recognition rate was 90.7%, an
Compensation management increase of 3.5 percentage points compared with 2024 , indicating that our corporate culture, management efficiency,
working environment and welfare security have been widely recognized by employees, and phased achievements
have been made in employer brand building and internal management optimization.
LAZZEN has established management systems such as the Performance Management System and the Compensation
and Benefits Management System, and conducts scientific compensation management in combination with In the future, we will continue to be oriented towards the needs of our employees, translate the survey results into
employee performance assessment, clearly defining the composition of three parts of compensation rights and practical improvement measures, continuously enhance employees' sense of belonging, happiness and gain, and
interests: equity, salary, and bonus, fully respecting employees' access to fair and impartial compensation rights work together with all employees to seek common development.
and interests.We have established a talent incentive and assessment system that is market-oriented and customer-
Employee Care
centered. Adhere to a compensation incentive mechanism that combines cash compensation with employee stock
ownership, and continue to do a good job in the sale of reserved shares of the employee stock ownership plan and
the recognition of performance evaluation.
LAZZEN implements a refined compensation management strategy to accommodate the specific needs and LAZZEN attaches great importance to employee benefits and activities, cares about the physical and mental health of
contributions of employees in different business lines. By taking into account factors such as job responsibilities, employees, contributes to the housing provident fund and various social insurances such as endowment insurance,
professional skills, job performance and market pay levels, fully stimulate the enthusiasm and creativity of basic medical insurance, unemployment insurance, work-related injury insurance and maternity insurance for
employees, promote the stable development of talents, and help to achieve our long-term strategic goals. employees, and organizes comprehensive physical examinations for employees on a regular basis to ensure coverage
of 100%. In addition, the company strengthens employees' sense of belonging by organizing a variety of cultural and
Democratic communication sports activities and implementing a comprehensive welfare policy.
Employee benefits
LAZZEN has established trade unions and workers' congresses, holds regular workers' congresses, and has
established a system of equal consultation and collective contracts. By unblocking the democratic dialogue
mechanism, collecting opinions and suggestions from all staff, and improving the VOS Voice community to ensure
the effective implementation of democratic management. We also actively promotes the factory affairs disclosure Five social
mechanism, strengthens democratic supervision, and conducts labor dispute mediation in accordance with the Subsidies for Team-
insurances Settlement
community building
law, provide channels for employees' complaints regarding salary performance and assessment management, and housing in Shanghai
activities expenses
ensure that employees' rights and interests are properly protected, and create a harmonious and stable working fund
environment.
Each workshop bulletin board has a feedback channel where employees can contact if they encounter problems or
need feedback, consultation, complaint, etc.
Annual Women's Hardship
physical care grants & Sick care
examination donation
Leave management
LAZZEN always pays attention to the physical and mental health and life balance of employees, and establishes a
standardized, complete and humanized vacation system. We strictly enforce national legal holidays and paid annual
leave, and provides all types of leave such as marriage leave, maternity leave and parental leave in accordance with
the law, encouraging employees to balance work and rest and take reasonable breaks, so that every employee can
enjoy life and spend time with their families while working with peace of mind. We have set out various types of leave
Bulletin Board and their implementation regulations in the Employee Handbook as follows:
Employee greetings
?Paid
?Statutory ?Marriage Distributed 300 cooling supplies to frontline workers working in high temperatures to provide summer care
annual
holidays leave
leave
?Prenatal
?Maternity ?Nursing
check-up
leave time
leave
?Parental ?Bereavement Assistance for employees in need Light up wishes
?Care leave
leave leave
Identified the recipients of assistance for the Successfully fulfilled one employee's micro-wish
applied for assistance for one needy employee
Caring for female employees Employee activities
By actively engaging in various forms of activities, enrich employees' spare-time cultural life, enrich
LAZZEN has created "Love Mommy Rooms" specifically for pregnant and lactating female employees,
employees' cultural life and spiritual world
equipped with essential items such as sofas, refrigerators, disinfection cabinets, hot water kettles, file racks,
partition screens, and books on breastfeeding and lactation knowledge. These rooms are built and managed
in a standardized manner, with dedicated personnel responsible for daily maintenance such as cleaning
and disinfection of the environment and facilities to ensure that the rooms are clean, tidy and comfortable,
demonstrating care for female employees.
Employee club activities
Loving Mommy Room
Birthday party Women's Day activities
Employee club activities 2025 Zhuguang Program - 3rd Anniversary of Employment
The Zhuguang Program is a cultural and sports activity specifically designed for core employees who have
been with LAZZEN for three years. In 2025, we set up a 10-kilometer hiking challenge, and all participating
employees successfully completed it.
Mother's Day activities Father's Day activities Children's Day Essay Contest
The Shaoguang Program is an honor care and capability enhancement program specifically designed for
core employees who have been with LAZZEN for five years. Through the Youth Family Day series of activities,
we aim to express gratitude to employees for their long-term contributions, unite the team, and empower
growth.
DIY activities for the Dragon Boat Festival Mid-Autumn Festival activities
The Miguang Program is a tea party specifically for core employees who have been with LAZZEN for a full
year. Through employee interaction and sharing, we deepen trust and friendship and help them integrate
into the team culture.
The awarding ceremony of the Prime Time Commemorative gold Coin
Prime Time Garden Party - Corporate culture Flying Chess
Talent Development Management trainee onboarding training
Promotion system For new management trainees, we have meticulously planned a series of intensive classroom training sessions with
the essence of "experience and integration", aiming to quickly immerse these new talents in the vast world of the
company, help them gain an in-depth understanding of LAZZEN's corporate culture, operation management and
LAZZEN implements a dual-track career development path covering professional and management positions, various business processes, and lay a solid foundation for their future career development.
allowing employees to advance across different tracks and achieve multi-path career development. The promotion
system specifies the qualifications for promotion and requires employees to demonstrate their abilities and
adaptability through a defense session. The assessment criteria are set according to the requirements of the training
institute.
LAZZEN implements a cadre management rotation system to promote the all-round development and experience
accumulation of cadres. In the future, we will continue to optimize the promotion channels and management
mechanisms for employees, providing them with broader career development space.
Employee training
Our internal training system is based on the LAZZEN Talent Development Center, which has five professional
colleges, each focusing on a different functional area. Training activities are planned and implemented on a monthly
and quarterly basis and summarized and reviewed at the end of the year. The company follows up on the demand for
Occupational Health and Safety
new training programs in real time and manages and adjusts them in accordance with the human resources system
and the specific systems of each college.
Employee internal training system
Work safety
Drive performance LAZZEN is committed to establishing and improving the safety production standardization process, perfecting the
safety production responsibility system, building intelligent safety production lines, optimizing the safety production
standardization process, and fully ensuring the safety of production operations.
Pangu Institute Edison Institute Panshi Institute Jingyi Institute Ganjiang Institute
LAZZEN has always adhered to the safety policy of "safety first, prevention foremost, comprehensive governance",
LAZZEN Talent Development
based on relevant provisions such as the Safety Law, established the Safety Committee, clarified responsibilities at
all levels, promoted the standardization process of work safety governance, held safety month activities every year,
WIN Program Trust Training and conducted regular work safety inspections.
Center
Internal instructor resource LAZZEN course resource External resource
Safety Committee Organization Structure
constructio library introduction
Online learning platform
Safety Committe Safety Committee Office Safety Team
PBC+ Position Responsibility Fulfillment We continuously explore smart safety production lines and build dynamic digital twin virtual factories by
comprehensively applying advanced technologies such as digital modeling, simulation analysis, and the IoT. By
introducing multiple sets of imported high-precision equipment, fully automated production lines, intelligent three-
The LAZZEN Talent Development Center is responsible for overall planning and management of training affairs and
dimensional storage equipment, and intelligent inspection equipment, we reduce the safety risks for employees
is committed to building a team of lecturers composed of both internal and external experts. The center will be
during production and create a safe, digital, intelligent production line.
responsible for the development and execution of courses, and through systematic training programs, cultivate and
build a high-quality talent team, providing support for our long-term development goals. In addition, we focuse on At present, Haiyan LAZZEN has obtained the Safety Production Standardization Level 3 Enterprise (Machinery)
the development of potential reserves and the continuous training of cadres upon their appointment, to ensure that Certificate; Shanghai LAZZEN has obtained the Safety Production Standardization Level 2 Enterprise (Machinery)
employees can adapt to new job requirements and continuously improve their personal capabilities. Certificate.
Duties of the Safety Committee We have formulated occupational health management documents such as the Notice
of Environmental and Occupational Health Requirements, Declaration of Abandonment
Regularly analyze the situation of work safety, analyze and determine the policies, objectives and of Occupational Health Exit Examination, and Environmental, Occupational Health and
and established a complete occupational health and safety production reporting
system.
Formulate safety technical measures, occupational disease prevention and control, annual key
Certification.
Clearly define the special funds, assessment, rewards and punishments for work safety, occupational
problems in production. Review solutions to major safety hazards and emergency response plans Occupational health risk management
for production safety accidents, and improve occupational health and safety management and
emergency response systems. LAZZEN actively conducts comprehensive occupational health risk factor identification ISO 45001 Occupational Health
and early intervention, conducts daily inspections based on the Hazard Identification and Safety Management System
and Risk Assessment Form, identifies and assesses hazard sources in production and Certification
Guide activities and publicity and education related to work safety and occupational disease
advanced technologies and management methods for work safety and occupational disease records and tracks improvement status, thereby effectively reducing occupational
prevention and control, and select, commend and reward advanced departments and individuals in health and safety risks.
work safety and occupational disease prevention and control. Occupational health risk assessment and management measures
In accordance with the approval of the state and local government and the relevant regulations of Management
Risk types
approaches
Specific measures
safety accidents within the company.
Occupational
Develop and implement occupational disease prevention management systems in accordance
disease prevention
with normative requirements
management
Hold accountable for other safety production accidents that occur within LAZZEN, discuss and
noise emissions
Develop and enforce a noise emissions management system to ensure compliance with relevant
standards
Risk of work
major matters related to safety production. safety
Establish a management system for labor protection supplies and clearly define the
distribution records
Management of
Train personnel in all positions to truthfully collect, record and correctly wear labor protection
labor protection
supplies
Work safety and emergency management supplies
The EHS department should regularly inspect the wearing situation, truthfully record and feed
back to the responsible department for rectification
In order to minimize the potential accident consequences of emergencies, LAZZEN conducts regular safety
Emergency LAZZEN is equipped with 11 AEDs (4 in Shanghai Base and 7 in Haiyan Base)
production risk assessments and formulates corresponding safety production emergency preparedness and Emergency
equipment and Practical training with AEDs for key personnel (security personnel, cafeteria staff, equipment
accident risk
response measures for emergencies such as falls from heights and mechanical injuries that may cause personal training personnel, EHS-related responsible persons, etc.)
injury or loss to the company. Safety The EHS department conducts daily on-site safety hazard inspections
Safety hazard
management Records hazards in a timely manner and feeds them back to the responsible department for
inspection
In recognition of the irreversible impact of injuries to people and property damage in emergencies, we actively risks rectification within a specified time limit
organize specialized training and emergency drills to enhance employees' ability to respond to emergencies
Regularly conduct occupational health check-ups for personnel in positions with occupational
and strengthen teamwork. Specialized training includes forklift safety training, accident case warnings and Occupational
hazards
Occupational health examination
presentations, occupational disease and occupational hazard factor training, emergency training covers operational, health risks Occupational
Prohibit personnel with contraindications from working in hazardous positions and transfer
them
coordination and communication skills in various emergency scenarios such as natural disasters and public health health monitoring
Regularly conduct occupational health monitoring in accordance with normative requirements
events, enhancing the team's practical ability to deal with complex situations and minimizing losses and injuries. In
addition, employees are provided with safety incident videos to foster a culture of learning and prevention, ensuring
Occupational health goals
comprehensive safety and health throughout the production process.
Occupational health
Serial
Occupational health management objectives Achievement status
number
LAZZEN attaches great importance to employees' occupational health, established an occupational health 1 Work-related injury and above (Level 4 and above) ≤ 1 Achieved
management system, and implementd management measures such as detection of occupational hazard factors, 2 Zero occupational disease occurrences Achieved
optimization of protective equipment, and occupational health education and training, to strengthen our capacity
for occupational health protection. 3 Rate of personal injury sent to hospital is ≤ 1% Achieved
Collaboration and
Public Welfare
Industry Collaboration
Social Welfare
Contributions to the United Nations
Sustainable Development Goals (SDGs)
Industry Collaboration Some of the industry associations in which LAZZEN participates
LAZZEN actively engages in industry collaboration and school-enterprise cooperation, actively participates in Shanghai Electric Power China Electrical Equipment Industry
industry forums, government-related activities and industry conferences, assists in the formulation of industry Industry Association Association (General Association)
standards, promotes knowledge sharing and technological innovation, and contributes to the overall improvement
Member Unit Director Unit
and high-quality development of the industry.
To strengthen market promotion and deepen customer partnerships, we planed and organized large-scale industry
China Electrical Equipment Industry
exhibitions, academic forums and industry exchange activities to continuously enhance the company's brand Association General Low Voltage Electrical Zigbee Alliance (CSA Alliance)
influence and industry exchange level. Appliances Branch
Deputy Chairman Unit Participant
China Electrical Equipment Industry
Association Electrical Accessories and China Smart Home Industry Alliance
Home Controllers Branch
Member Unit Chairman Unit
China Survey and Design Association Architectural Electrical Branch of
China Architecture Society
Director Unit Director Unit
GENERA 2025 International Week of Electrification and The 13th Energy Storage International
Decarbonisation Conference and Expo (ESIE 2025) New Energy Electrical Appliances New Energy Storage
Alliance Industry Association
Deputy Chairman Unit Member Unit
Standard formulation and revision
National and group standards that LAZZEN participated in formulating and revising in 2025
Serial Standard
Standard number Standard name
numbers type
Electrical accessories—Circuit-breakers for overcurrent protection for household National
The 21st Green Energy Expo The 22th China International Exposition of Housing Industry 1 GB/T 10963.3-2025
and similar installations—Part 3: Circuit-breakers for DC operation Standard
& Products and Equipments of Building Industrialization
Low-voltage switchgear and controlgear—Part 4-3: Contactors and motor-
National
Standard
motor loads
Low-voltage switchgear and controlgear—Part 3: Switches, disconnectors, National
switch-disconnectors and fuse-combination units Standard
Low-voltage switchgear and controlgear—Part 4-2: Contactors and motor- National
starters—Semiconductor motor controllers, starters and soft-starters Standard
Residual current-operated protective devices (RCD) for household and similar National
use—Electromagnetic compatibility Standard
Empty enclosures for low-voltage switchgear and controlgear assemblies— National
General requirements Standard
Conference and Nuclear Electrical System and
Equipment Reliability Exchange Conference
Serial Standard Serial Standard
Standard number Standard name Standard number Standard name
numbers type numbers type
National Quantification methods and requirements for carbon footprint of greenhouse Group
Standard gas products Low-voltage switchgear assemblies Standard
A method of temperature-rise verification of low-voltage switchgear and National Group
controlgear assemblies by calculation Standard Standard
National Guidelines for Selection of Low-voltage Circuit breakers for Wind Power Group
Standard Converters Standard
Reliability for low-voltage apparatus—Part 2: Reliability test method of moulded National Group
case circuit-breakers Standard Standard
Reliability for low-voltage apparatus—Part 3: Reliability test method of overload National Group
relay Standard Standard
Reliability of low-voltage apparatus—Part 4：Reliability test method of circuit- National Group
breakers for overcurrent protection for household and similar installation Standard Standard
Reliability of low-voltage apparatus—Part 5:Reliability test method of residual National Group
current operated circuit-breaker for household and similar uses Standard Standard
Reliability for low-voltage apparatus—Part 7: Reliability test method of National Group
contactors Standard Standard
National Group
Standard Standard
National Local
Standard Standard
Group
Standard
Social Welfare
Technical Specification for green- design Product assessment— Circuit Industry
-breakers for overcurrent protection for household and similar installation Standard
Industry
Standard
Technical specification for green-design product assessment - Moulded-case Industry In 2025, we adhered to the public welfare concept of "People-oriented and giving back to society", and worked hard
circuit-breaker Standard on both the trade union and the company level to carry out various public welfare and charity activities solidly.
In response to the call for local charity, we participated in the "Kangqiao Town Charity and Public Welfare Joint
Industry
Standard
total of CNY12,000. With practical actions, we contributed to the development of local public welfare and conveyed
Technical Specification for Product certification of low-voltage circuit breakers Group responsibility and warmth through small acts of kindness.
for new energy systems Standard
LAZZEN actively participates in community public welfare and rural revitalization activities, establishes solid
Group cooperative relationships with local residents, government agencies, community organizations, etc., takes the
Standard
initiative to care about people's livelihood and help the weak and needy, promotes sustainable development of the
Group social economy, and achieves the company's long-term development strategic goals.
Standard
Technical requirements for low-voltage intelligent molded case circuit breaker Group
systems Standard
Technical guide for parallel DC power supply system in 220kV and below Group
substations - Part 4: Operation and maintenance Standard
Key Performance Disclosures Units 2024 2025
Total volume of circulating water/reclaimed
tons 5,016 4,052
water
Environmental Performance
Total water withdrawal tons 237,836 262,657
Total water consumption tons 41,840 25,610
Disclosures Units 2024 2025 Water usage intensity tons/ CNY10,000 0.6141 0.6166
Responding to climate change Material usage
Scope 1 GHG emissions tCO2e 1,125.37 780.34 Total use of packaging consumables tons 1,832 1,919
Scope 2 GHG emissions tCO2e 18,716.38 20,986.29 Wood tons 1,439 1,507
Total GHG emissions tCO2e 19,841.75 21,766.63 Plastic tons 315 330
GHG emission intensity tCO2e / CNY 10,000 0.0512 0.0511 Paper tons 78 82
Energy consumption Discharge of gaseous pollutants
Comprehensive energy consumption tce 4,515 5,039 Total exhaust emissions m? 588,960,000 485,130,000
Comprehensive energy consumption intensity tce / CNY 10,000 0.0117 0.0118 Particulate matter kg 2 2
Natural gas m? 100,705 82,332 Total non-methane hydrocarbons kg 991 816
Gasoline Liter 28,258 29,589 Nitrogen oxides kg 0 0
Purchased steam tons 2,273 1,026 Sulfur oxides kg 0 0
Purchased electricity MWh 33,621 39,028 VOC emissions kg 3,964 2,870
Direct energy consumption tce 165 142 Discharge of water pollutants
Indirect energy consumption tce 4,350 4,897 Total amount of wastewater discharge tons 195,995 237,047
Usage of clean energy MWh 4,705 5,526 Industrial wastewater discharge tons 4,104 3,315
Water use Domestic wastewater discharge tons 191,891 233,732
Municipal water purchase volume tons 232,820 258,605 Chemical Oxygen Demand (COD) tons 0.116 0.688
*We have retrospectively adjusted the statistical criteria for the Comprehensive energy consumption, Comprehensive energy *We have adjusted the statistical scope of Total amount of wastewater discharge to the sum of Industrial wastewater discharge
consumption intensity, Natural gas, Gasoline, Direct energy consumption, Indirect energy consumption, Municipal water purchase and Domestic wastewater discharge, and consolidated the data of the Shanghai base. As a result, the Total amount of wastewater
volume, Total water withdrawal, and Total water consumption for the year 2024. The addition of data from the Shanghai base has discharge and Domestic wastewater discharge data for 2024 are different from the disclosed values of the previous year.
led to differences in the disclosed data compared to the previous year.
Disclosures Units 2024 2025
Social Performance
Biochemical Oxygen Demand (BOD) tons 0 0
Disclosures Units 2024 2025
Suspended matter tons 0 0
Innovative research and development
Ammonia nitrogen tons 0.002 0.001
Research and development investment amount CNY 10,000 32,469.74 33,379.09
Total Nitrogen (TN) tons 0.026 0.076
Proportion of research and development investment to
% 7.66 7.44
business income
Total Phosphorus (TP) tons 0.001 0.013
Number of R&D personnel persons 594 657
pH - 6-9 6-9
Proportion of R&D personnel % 25.22 25.79
Waste management
Number of invention patents applied to the main
/ 348 404
Total waste generation tons 101 259 business
Number of patent applications for invention during the
/ 127 159
Total hazardous waste generation tons 30 39 reporting period
Number of invention patents granted during the
Total general waste generation tons 71 220 / 207 56
reporting period
Waste recycling volume tons 71 220 Number of new patents granted during the reporting
/ 356 379
period
Environmental compliance
Number of patents held / 1,779 2,016
Environmental investment CNY 10,000 170 70
Number of trademark and word registrations held / 701 731
Amount of major administrative penalties
imposed by ecological and environmental Number of software copyrights held / 60 107
CNY10,000 0 0
authorities for environmental incidents during
the reporting period Annual number of new patent applications / 456 572
Number of employees who received
persons 2,355 3,550
environmental training Employee hiring
Total duration of environmental training for
hours 4,710 7,100 Proportion of labor contracts signed % 100 100
employees
Average duration of environmental training for Total number of employees persons 2,355 2,652
hours 2 2
employees
Male persons 1,637 1,856
By gender
Female persons 718 796
Labor contract system persons 2,259 2,525
By type of
Labor dispatch persons 66 69
employment
Others persons 30 58
*Total number of employees includes dispatched workers, while the total number of employees in the annual report excludes
dispatched workers.
Disclosures Units 2024 2025 Disclosures Units 2024 2025
Over 50 years old persons 25 41 Number of departing employees persons 710 562
By age 30 to 50 years old persons 1,697 1,899 Talent development
Under 30 years old persons 624 712 Employee training investment CNY 10,000 200 190
Chinese mainland persons / 2,650 Number of employees who received training persons 39,241 41,315
By region
Other countries and regions persons / 2 Number of training sessions times 651 351
Doctor persons 3 3 Total duration of training received by employees hours 47,175 50,952
Master persons 142 169 Number of employees who undergo performance
persons 1,565 1,599
appraisals or career development evaluations
By educational
Undergraduate persons 1,188 1,359 Work safety
attainment
Junior college persons 348 430 Safety production investment CNY 10,000 124 108
Below junior college persons 674 691 Number of work safety accidents cases 0 0
Total number of grassroots
persons 2,116 2,378 Employee work injury insurance coverage % 100 100
employees
Total number of middle Employee work safety liability insurance coverage % 100 100
persons 228 255
management staff
By employee Total number of senior Employee safety production liability insurance
persons 34 19 CNY 10,000 3 3
category management staff contribution amount
Number of women in middle Number of work-related accidents cases 5 3
persons 11 40
management
Number of work-related injuries persons 5 3
Number of women in senior
persons 1 3
management
Number of work-related fatalities cases 0 0
Production personnel persons 888 930
Number of deaths at work persons 0 0
Technical personnel persons 657 823
Number of contracted work-related injuries cases / 0
By professional
Salesperson persons 586 628
composition
Number of contractor deaths at work persons / 0
Financial personnel persons 24 33
Number of employees receiving safety training persons 1,742 1,812
Management personnel persons 200 238
Total hours of safety training attended by employees hours 13,936 14,496
Number of ethnic minorities persons 6 10
Occupational health
Number of disabled people persons 1 4
Number of plants certified by the Occupational Health
persons 5 5
and Safety Management system
Number of new hires persons 417 629
Disclosures Units 2024 2025 Governance Performance
Number of employees in occupational risk positions persons 503 778
Disclosures Units 2024 2025
Number of employees undergoing occupational health
persons 480 780 Corporate Governance
check-ups
Number of employees with occupational diseases persons 0 0 Number of shareholders' meetings held / 2 4
Number of companies participating in the physical Number of board meetings / 10 6
persons 1,742 1,768
examination
ESG Governance
Proportion of person-times participating in physical
% 79 80
examinations
Number of ESG training sessions / 1 1
Supply Chain management
ESG training coverage persons 30 20
Total number of suppliers / 272 305
Risk Compliance and Taxation
Proportion of suppliers signing the Supplier Integrity
% 100 100
Clause Risk/Audit training times 4 2
Proportion of suppliers signing terms that include Number of employees covered by risk/audit training persons 200 200
% 100 100
environmental and labor requirements
Number of suppliers conducting social impact Number of employee compliance training persons 100 150
/ 83 100
assessments
Number of employees covered by financial tax training persons 30 27
Number of suppliers conducting environmental impact
/ 120 120
assessments
Anti-corruption
Number of suppliers certified with ISO 9001 / 256 289
Number of corruption lawsuits filed and concluded by regulators against issuers
/ 0 0
or their employees
Number of suppliers certified with ISO 14001 / 125 140
Number of anti-corruption whistleblowing incidents / 2 1
Number of suppliers certified with ISO 45001 / 83 100
Proportion of directors covered by anti-commercial bribery and anti-corruption
% 55 100
Number of suppliers identified as having actual and training
/ 0 0
potential significant negative social impacts
Proportion of management personnel covered by anti-commercial bribery and
% 100 100
Number of suppliers identified as having actual and anti-corruption training
/ 0 0
potential significant negative environmental impacts
Proportion of employees covered by anti-commercial bribery and anti-
% 80 63
corruption training
Number of new suppliers / 15 22
Investor Relations
Local supplier percentage % 13 15
Investor communication activities conducted / 78 74
Number of suppliers who terminated their cooperation / 0 0
Record sheet of investor relations activities released / 8 7
Social contribution
Earnings briefing held / 3 1
Amount of social welfare contribution CNY 10,000 36.3 1.2
Interactive Q&A / 61 52
Phone calls made / 60 48
*Apart from the personnel data,all the performance data above do not include those of Hoko Electric.
Indicator Index GRI Index
Shenzhen Stock Exchange Guidance Index GRI
Disclosures Corresponding chapters
standards
GRI 2: General Disclosures 2021
Dimensions Topics Corresponding chapters
About This Report
Responding to Climate Change Responding to Climate Change 2-1 Organizational details
Step into LAZZEN
Pollutant Emissions Pollutant Emissions
Waste Disposal Waste Management
Ecosystem and Biodiversity Conservation Biodiversity Conservation
Environment
Environmental Compliance Management Environmental Compliance Management
AA1000 Independent Assurance
Energy Utilization Resource Management 2-5 External assurance
Statement
Water Utilization Resource Management
Circular Economy Resource Management
Rural Revitalization Social Welfare
Social Contribution Social Welfare
Innovation-driven Innovation-driven Development
Science and Technology Ethics Intelligence Ecosystem Products
Role of the highest governance body in overseeing the management of
Supply Chain Security Supply Chain Security 2-12 Corporate Governance
impacts
Society Treat Small and Medium-sized Enterprises Treat Small and Medium-sized Enterprises Sustainable Development
Equally Equally 2-13 Delegation of responsibility for managing impacts
Management
Product Quality Sustainable Development
Safety and Quality of Products and Services Management
Customer Service
Sustainable Development
Management
Data Security and Customer Privacy Information Security and Customer Privacy
Protection Protection
Employees Employee Rights
Due Diligence Risk Compliance
Sustainable Development
Stakeholder Communication Sustainable Development Management Management
Sustainable development-
related governance Anti-commercial Bribery and Anti- Sustainable Development
Business Ethics 2-26 Mechanisms for seeking advice and raising concerns
corruption Management
Anti-unfair Competition Business Ethics
GRI GRI
Disclosures Corresponding chapters Disclosures Corresponding chapters
standards standards
Sustainable Development GRI 302: Energy 2016
Management
GRI 3: Material Topics 2021
Sustainable Development
Management
Sustainable Development
Management Resource Management, Special
Topic
GRI 201: Economic Performance 2016
Resource Management, Special
Topic
GRI 303: Water and Effluents 2018
Financial implications and other risks and opportunities due to climate
change
GRI 204: Procurement Practices 2016
GRI 205: Anti-corruption 2016
GRI 304: Biodiversity 2016
Operational sites owned, leased, managed in, or adjacent to, protected Environmental Compliance
GRI 206: Anti-competitive Behavior 2016 304-1
areas and areas of high biodiversity value outside protected areas Management
Legal actions for anti-competitive behavior, anti-trust, and monopoly
practices GRI 305: Emissions 2016
GRI 207: Tax 2019
GRI 301: Materials 2016 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air
emissions
GRI GRI
Disclosures Corresponding chapters Disclosures Corresponding chapters
standards standards
GRI 306: Waste 2020 403-9 Work-related injuries Occupational Health and Safety
programs assistance programs
development reviews
GRI 308: Supplier Environmental Assessment 2016
GRI 405: Diversity and Equal Opportunity 2016
GRI 401: Employment 2016 GRI 406: Non-discrimination 2016
Benefits provided to full-time employees that are not provided to GRI 408: Child Labor 2016
temporary or part-time employees
GRI 409: Forced or Compulsory Labor 2016
GRI 403: Occupational Health and Safety 2018
Operations and suppliers at significant risk for incidents of forced or
compulsory labor
and development programs
Worker participation, consultation, and communication on
occupational health and safety
Prevention and mitigation of occupational health and safety impacts GRI 416: Customer Health and Safety 2016
directly linked by business relationships
Workers covered by an occupational health and safety management Product Quality
system 416-1
categories
Customer Service
Incidents of non-compliance concerning the health and safety impacts
of products and services
GRI
Disclosures Corresponding chapters Assurance criteria
standards
GRI 417: Marketing and Labeling 2016 The Bohan Sustainability Center uses the AA1000AS v3 Type 2 moderate assurance level, which includes the
evaluation of LAZZEN's compliance with and extent of the four AA1000AS v3 assurance principles of inclusion,
Source of assurance information
Incidents of non-compliance concerning product and ser vice
information and labeling
Report Title: LAZZEN 2025 Environmental, Social and Governance (ESG) Report
GRI 418: Customer Privacy 2016
Source: LAZZEN
Substantiated complaints concerning breaches of customer privacy Information Security and Customer
and losses of customer data Privacy Protection
Assurance duties and statements
The management of LAZZEN is fully responsible for the preparation and content of the LAZZEN 2025 Environmental,
AA1000 Independent Assurance Statement Social and Corporate Governance (ESG) Report. It is the responsibility of the Bohan Sustainability Center to conduct
the assurance based on the scope described in the opinion and to provide professional assurance opinions and
independent assurance statement opinions to the report readers and stakeholders.
To the management and stakeholders of LAZZEN: Based on the restricted matters of the assurance scope, the Bohan Sustainability Center conducts independent and
limited assurance work and guarantees the conclusion for the matters within the defined scope of the ESG Report of
Bohan Sustainability Center Co., LTD. (hereinafter referred to as "Bohan Sustainability Center") is entrusted by LAZZEN. in accordance with AA1000AS v3 (the management of LAZZEN is fully responsible for the preparation and
Shanghai Liangxin Electrical Co.,LTD. (hereinafter referred to as "LAZZEN") to conduct independent limited assurance content of the report). Except for conducting independent assurance of the facts corresponding to those conclusions
of the information and data disclosed by LAZZEN. regarding the Environmental, Social and Governance (ESG) Report and making other statements of opinion, Bohan Sustainability Center shall not bear or be liable for any inquiry for
results and conclusions of the assurance to the readers and stakeholders of the ESG report of LAZZEN.
Any questions regarding the contents of this independent assurance statement or related matters will be answered
by LAZZEN.
Scope of the assurance
The time range of this assurance is limited to the information and data disclosed in the ESG report for the period
from 1 January 2025 to 31 December 2025. Any relevant information outside the reporting period is not within the Assurance process and work
scope of this assurance.
Verify the data and information covered by LAZZEN and its affiliated subsidiaries in LAZZEN's ESG Report. In order to gather evidence related to the formation of conclusions, we carried out the following work:
This assurance does not include data and information from LAZZEN's suppliers, partners, and other third parties.
To assess the extent to which LAZZEN's ESG Report complies with the AA1000AS v3 principles of inclusiveness, in the assurance plan to form the assurance plan.
substance, responsiveness and impact.
For the information and data disclosed in the ESG report that has been audited or verified by an independent environmental, social and corporate governance responsibilities and related management processes.
third-party institution, no re-assurance will be conducted this time.
the supporting evidence for the declarations made in the review report.
expectations and needs, the specific communication channels between the two parties, and how LAZZEN
responds to the expectations and needs of the stakeholders.
procedure on the information, assess its overall performance, and verify its consistency with the information
Assurance conclusions
disclosed in the report.
Based on the information provided by LAZZEN and sampling tests, there are no material misstatements in
Verify the process management related to inclusion, substance, responsiveness and impact in the report and
its associated AA1000 to confirm the suitability of this statement.
The detailed review results regarding the inclusion, substance, responsiveness and impact principles included in
AA1000AS v3 are as follows:
specific performance information.
Principles Evaluation
The report reflects that LAZZEN has established a systematic stakeholder engagement
mechanism, identified key stakeholder groups, and continuously collected their expectations
Independence and assurance capabilities Inclusiveness
and concerns through diversified communication channels such as regular communication,
information disclosure, and special exchanges. The relevant results have been incorporated
into the company's ESG management and the process of identifying important topics and are
Bohan Sustainability Center and LAZZEN are completely independent organizations of each other, and there is no responded to in the report.
business relationship between the two parties that would lead to conflicts of interest; The Bohan Sustainability
Center's assurance team independently carried out this assurance; LAZZEN has established a mechanism for identifying and evaluating critical ESG topics through
a systematic process, and assesses and ranks them based on two dimensions: financial
The Bohan Sustainability Center's assurance team is composed of experienced ESG experts in the industry. The Substantive
importance and environmental and social impact importance, forming a list of critical topics
relevant personnel have received professional training in sustained-related standards such as GRI standards issued
and disclosing it in the report.
by the Global Reporting Initiative, AA1000AS v3, ISO 14001, ISO 14064, EcoVadis Global Supply Chain Rating, and
are qualified for sustainability assurance services of the Bohan Sustainability Center. All have the ability to carry
out assurances. LAZZEN has established a systematic response mechanism for the material topics of concern
to stakeholders, responds by formulating relevant policies, management systems and
Responsiveness
specific action measures, and discloses the relevant progress and achievements in reports,
demonstrating a management closed loop of continuous improvement.
LAZZEN has established a mechanism for identifying, assessing and managing the impact
Limitations of key ESG topics. By setting relevant performance indicators, the company monitors and
quantifies environmental and social impacts and discloses them in its reports. At the same
Impactful
time, the company is gradually refining its impact management process to support decision
This review used sampling to verify the relevant data and information, and therefore did not cover all the optimization and continuous improvement, thereby more objectively reflecting its actual
information disclosed in the report. impact on sustainability.
Some ESG information has not yet formed a fully unified international standard in terms of data collection,
calculation methods and disclosure standards. Different organizations may adopt different methods, which may
affect the comparability of the data.
Some of the information in the report (such as the identification of materiality topics and stakeholder engagement
results) relies on management judgment and related methods and is somewhat subjective.
This review does not cover information outside the reporting period and does not provide any assurance regarding
future predictive information related to it.
Assurance Institution: Shanghai Bohan Public Relations Management Consulting Co., LTD.
This assurance does not cover supply chain and other third-party data whose completeness and accuracy have not
been verified in this assurance. Assurance date: March 2026
Assurance members: Bohan Sustainability Center Sustainability Assurance Team
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