CONTENTS
About This Report 01 Building on Strong Governance Embracing Green Practices for Driving Development through
Chairman Message 03
About JSG 05 Corporate Governance 17 Ecological and Environmental Management 37 Green Industry Synergy 59
Company Development History 07 ESG Management 23 Addressing Climate Change 40 R&D and Innovation 63
Compliance and Risk Management 27 Resource Utilization 45 Product Quality and Safety 71
Business Ethics 28 Management of "Three Wastes" 51 Customer Service 76
Information Security and Privacy Protection 33 Circular Economy 55 Sustainable Supply Chain 79
Key Performance Table 123 Empowering Talent to Build Creating Positive Impact
Index of Indicators 129
Employee Rights and Benefits 89 Public Welfare 119
Reader Feedback 130
Employee Development 95 Rural Revitalization 121
Employee Care 105
Occupational Health and Safety 109
About This Report
Report Terminology
This is the 5th Environmental, Social, and Governance (ESG) Report published by Zhejiang Jingsheng Mechanical
& Electrical Co., Ltd. This Report discloses the Company's development practices and major achievements in For the purpose of presenting the economic, social and environmental responsibilities of Zhejiang Jingsheng
economical, environmental, social, and corporate governance responsibilities for the year 2025 in an attempt to Mechanical & Electrical Co., Ltd. (hereinafter referred to as "JSG", the "Company" or "we") and its subsidiaries, the
communicate effectively with various stakeholders and systematically respond to stakeholder expectations and full names and abbreviations of some of the subsidiaries covered in this Report are as follows:
requirements.
Huixiang E&H refers to Hangzhou Huixiang Electronic Meijing New Materials refers to Zhejiang Meijing New
Hydraulic Technology Development Co., Ltd. Materials Co., Ltd.
Time Frame Jingchuang Automation refers to Zhejiang Jingchuang Ningxia Jingchuang refers to Ningxia Jingchuang
Automation Equipment Co., Ltd. Intelligent Equipment Co., Ltd.
The Report covers the period from January 01, 2025, to December 31, 2025. To enhance the comparability and Jinghuan Electronic refers to Inner Mongolia JingHuan Ningxia Jinghuan refers to Ningxia Jinghuan New
perspectiveness of the Report, some content appropriately refers to previous and subsequent years. Electronic Materials Co., Ltd. Material Technology Co., Ltd.
Jinghong Precision refers to Zhejiang Jinghong Ningxia Xinjingsheng refers to Ningxia Xinjingsheng
Basis for Compilation Precision Machinery Manufacturing Co., Ltd. Electronic Materials Co., Ltd.
Jingyu New Materials refers to Zhejiang Jingyu New Qiushi Semiconductor refers to Zhejiang Qiushi
UN Sustainable Development Goals (SDGs) 2030 Materials Co., Ltd. Semiconductor Equipment Co., Ltd.
Jingrui Electronic refers to Zhejiang Jingrui Electronic Qiushi Chuangxin refers to Zhejiang Qiushi Chuangxin
GRI Sustainability Reporting Standards (GRI Standards) by Global Reporting Initiative (GRI)
Materials Co., Ltd. Semiconductor Equipment Co., Ltd.
Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For
Jingsheng Photonics refers to Zhejiang Jingsheng ZVISION Photoelectric refers to Hangzhou ZVISION
Trial Implementation)
Photonics Technology Co., Ltd. Photoelectric Technology Co., Ltd.
Self-Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange—Compilation of Sustainability Report
Jingxin Green Diamond refers to Zhejiang Jingxin Green
Chinese National Standard Guidelines on Social Responsibility Reporting (GB/T 36001-2015) Diamond Technology Co., Ltd.
*See the Company's 2025 Annual Report for the scope of the specific holding subsidiaries covered in this Report.
Data Source
The data in this Report comes from the raw data of the Company's actual operation, public data from government
Report Acquisition
departments, annual financial data, relevant internal statistical reports, third-party questionnaires and evaluation This Report is published in electronic format and can be accessed on the Shenzhen Stock Exchange website (www.
interviews. The financial data in this Report is in CNY. In case of any inconsistency between this Report and the szse.cn) and CNINFO (www.cninfo.com.cn). The Report is available in both English and Chinese. In the event of any
Financial Report, the Financial Report shall prevail. discrepancy in the interpretation of the two texts, the Chinese version shall prevail.
Chairman Message
The year 2025 marked a significant milestone for JSG Driving force through innovation and advantage through technology. The Company adheres to a dual-driven
as we continued to deepen our "Advanced Materials, R&D system powered by both technological innovation and in-depth exploration of customer needs. We continue
Advanced Equipment" strateg y and advance to increase R&D investment, building a moat around our core technologies to ensure long-term sustainable
h i g h - q u a l i t y d e v e l o p m e n t . Fa c i n g t h e co m p l e x competitiveness. By continuously achieving breakthroughs in key processes and equipment technologies, JSG made
landscape shaped by the global restructuring significant strides in the semiconductor equipment and materials sector in 2025. We successfully accomplished the
of the semiconductor industr y and profound domestic development of critical high-end equipment, including 12-inch reduced-pressure epitaxy equipment and
adjustments in the new energy photovoltaic sector, advanced packaging thinning equipment, achieving product performance on par with international advanced levels.
the Company remained steadfast in its commitment We launched a full-process solution for square silicon wafers, marking a technological leap from circular wafers to
to te c h n o l o g i c a l i n n o vat i o n a n d s u sta i n a b i l i t y. rectangular substrates. We also achieved key breakthroughs in 12-inch silicon carbide crystal growth and established
On the foundation of stable operations, we have a pilot line, laying a solid foundation for the domestic production of large-diameter, third-generation semiconductor
continuously enhanced both our industrial and social materials. Furthermore, we continue to advance our strategic layout in semiconductor precision components and
value. Guided by a strong sense of responsibility, deepen collaboration with customers across the industrial chain. We firmly believe that technological innovation
we have deeply integrated Environmental, Social is not only the core engine driving corporate growth but also the fundamental pathway to enabling green
and Governance (ESG) principles into our corporate transformation across the industrial chain and fulfilling our sustainable development responsibilities.
strategy and business practices, actively responding
Strengthening foundations through governance and shaping the future through talent. The Company
to the responsibilities and missions entrusted
continuously improves its modern corporate governance and ESG management system. Under the strategic
to e nte rpri s es by the ti me s while advan c ing the
guidance of the Board of Directors, we have optimized our governance structure, standardized the operation of the
development of advanced manufacturing.
three governing bodies, strengthened internal control and risk management, and enhanced information disclosure
and stakeholder communication. By embedding ESG principles throughout our management processes, we are
Charting the course with strategy and expanding
continuously improving governance transparency, standardization level, and decision-making quality, thereby
horizons through synergy. JSG remains committed to its
building a solid institutional foundation for the Company's sustainable development. We firmly believe that talent
mission: "building a leading enterprise of semiconductor
is the foremost resource, and we have built a comprehensive talent development ecosystem. By improving career
materials and equipment and developing green intelligent
pathways, implementing diversified incentive mechanisms, and establishing systematic training systems, we support
high-tech manufacturing industr y". We continue
the mutual growth of employees and the Company. JSG has assembled a high-caliber talent pool led by professors
to deepen our "Equipment + Materials" synergistic
and doctors, with masters and senior engineers forming the core. Leveraging state-level research platforms and
business layout, establishing three core business
overseas R&D centers, we have created a closed-loop mechanism for attracting, developing, utilizing, and retaining
segments: semiconductor equipment, semiconductor
talent. This high-quality, well-structured, and innovative talent force provides a solid guarantee for our technological
substrate materials, and semiconductor consumables
breakthroughs, domestic substitution efforts, and global expansion.
and components, thereby building a solid foundation
for stable growth. Driven by R&D and innovation, we Looking ahead, the global technology industry and green transformation are embracing new development
are expanding our market presence, advancing global opportunities. JSG will continue to uphold its core values: "Honesty and optimism, loyalty and dedication, striving
development, and continuously enhancing our industrial orientation, bolstering partners to success, pioneering and innovation, and co-creation of brilliance". We will remain
chain synergy and overall competitiveness. At the same committed to sustainable development, driving industrial upgrades through technological innovation and facilitating
time, adhering to the principles of openness, synergy, low-carbon transformation through green manufacturing. Together with our employees, customers, partners, and
and win-win cooperation, we work closely with long- the wider community, we will continue to advance the high-quality development of the advanced manufacturing
Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. term strategic partners, fostering mutual trust and co- industry.
Chairman creation of value to jointly promote higher-quality and
more sustainable development in the semiconductor and The crystal of technology enjoys great prestige in the world. Let us forge ahead confidently in the currents of our
Dr. Cao Jianwei photovoltaic industries. times, writing a new chapter of sustainable corporate development through innovation and responsibility.
About JSG Corporate Culture
Company Profile
Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. was founded in 2006 and listed on the stock exchange in 2012. It is a leading Vision Mission Values
high-tech enterprise in China specializing in "Advanced Materials, Advanced Equipment". The Company boasts an R&D and
management team led by professors and Ph.D. holders, and possesses technology research platforms including a National To become a leading
equipment supplier of Honesty and Optimism
Postdoctoral Research Workstation, a National Enterprise Technology Center, and several specialized research institutes. Its
semiconductor materials Loyalty and Dedication
main business products cover semiconductor equipment, semiconductor substrate materials, and semiconductor consumables The crystal of technology
Struggle Orientation
and components. enjoys great prestige in the To facilitate high-tech Partner Accomplishment
world industry development
In the field of semiconductor equipment, the Company is a leading domestic enterprise of core equipment for 8-12 inch Pioneering and Innovation
semiconductor large silicon wafers. It has successfully established a presence in chip manufacturing and packaging equipment, for green intelligent Co-creation of Brilliance
including 8-12 inch silicon atmospheric pressure epitaxy, 8-12 inch reduced-pressure epitaxy equipment, and thinning manufacturing
equipment, with related products gaining market recognition and achieving mass sales. Its 6-8 inch silicon carbide epitaxy
equipment has achieved domestic substitution, with a leading market share. Its photovoltaic equipment technology and scale
are globally leading in both respects.
In the field of semiconductor materials, the Company's sapphire material technology and scale are globally leading. Its 6-8 inch
silicon carbide substrate technology and scale rank among the top in China. It has achieved a technological breakthrough in 12-
inch silicon carbide crystal growth and successfully constructed a pilot line for 12-inch silicon carbide substrates. In the field of
semiconductor consumables and components, the Company's technology and scale for semiconductor quartz crucibles have
achieved domestic leadership, while its technology and scale for photovoltaic quartz crucibles are globally leading. Additionally,
the Company's processing capacity and mass production scale for precision semiconductor components, such as large vacuum
chambers, large high-precision frames, and precision transmission spindles, rank among the top in China.
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Company Development History
hangyu Jingsheng
S eveloped the first
D uccessfully developed
S uccessfully developed the
S nderwent a shareholding
U uccessfully developed the domestic
S
Mechanical & domestic fully-automatic the largest fully-automatic first domestic dual-source reform to become: Zhejiang first gas-cooled multicrystalline
Electrical Engineering mono crystal silicon growth Czochralski mono crystal JSH450 multicrystal ingot Jingsheng Mechanical & silicon casting furnace
Co., Ltd. Established furnace and achieved batch puller in China furnace Electrical Co., Ltd.
uccessfully developed the first
S
sales
sapphire silicon growth furnace
he 8-inch float zone silicon mono crystal puller
T cquired ZVISION Photoelectric, aiding in the
A stablished JingRui Electronic,
E stablished JingHuan
E isted on the GEM of the
L
passed the national 02 special project acceptance creation of automated intelligent production lines with a production capacity of Electronic to engage Shenzhen Stock Exchange
stablished Jingchuang Automation, starting the
E he 300mm Czochralski silicon mono crystal
T
slicing and polishing projects material business
equipment service journey puller equipment passed the national 02 special
project acceptance
cquired 10% shares and jointly established the Zhonghuan Advanced Semiconductor Materials
A uccessfully developed a 6-inch SiC crystal growth
S uccessfully developed various equipment for G12 silicon
S
Co., Ltd with Zhonghuan furnace wafers, double-side grinding machines for 8-12 inch silicon
wafers, and polishing machines for 6-8 inch silicon wafers
Developed a 12-inch semiconductor superconducting magnetic field mono crystal puller stablished PRIMET Japan Co., Ltd., expanding into the
E
high-end semiconductor precision component field chieved full coverage of 8-inch semiconductor silicon wafer
A
Invested in semiconductor precision parts manufacturing base through JingHong Precision
growth, slicing, polishing, and CVD processing equipment
stablished Qiushi Semiconductor, initiating the
E
Established JSG Japan Co., Ltd., starting the path of international R&D for semiconductor equipment
development of semiconductor CVD equipment
Successfully developed a fully-automatic diamond growth furnace uccessfully developed a 12-inch semiconductor
S Successfully grew a 700Kg level sapphire crystal
hard-axis Czochralski silicon mono crystal puller
JSG celebrated its tenth anniversary of listing ompleted the technical identification of the third-
C
uccessfully developed the process exhaust gas
S generation semiconductor CVD equipment
Successfully developed an 8-inch N-type SiC crystal
treatment equipment for the semiconductor industry
uccessfully developed a 12-inch precision double-
S
eveloped the first chip-end LPCVD, officially
D side polishing machine
entering the IC manufacturing field
JSG's Technology Center was recognized as a national enterprise technology center eijing New Materials and Qiushi Semiconductor were recognized as national
M
specialized, refined, special, and innovative "Little Giant" enterprises
Meijing New Materials became the first company in China to develop and mass-produce 42-inch quartz crucibles
JingHuan Electronic's 1,000kg class ultra-large sapphire silicon set a new world record
he School of Mechanical Engineering of Zhejiang University held the inauguration ceremony of
T
"Jingsheng Building" Jingsheng Photonics exported cell equipment to overseas customers
JSG's annual output of 300,000 silicon carbide substrates project launched The Japan Materials Research Institute was established
April
February June
r. Cao Jianwei, Chairman
D
SG's mono-crystal puller
J of JSG, was awarded the
SG participated in the 18th
J
and polisher were included honorary title of "Model
in the 2024 National Patent- Worker" of the Ningxia (2025) SNEC International
Intensive Products List Hui Autonomous Region Photovoltaic Power Generation
January and Smart Energy Conference &
Exhibition
SG was honored among
J
March May SG's subsidiary Qiushi
J
the 2024 Top 500 Chinese
SG was successfully selected as a
J uperSiC, a subsidiary of
S Chuangxin successfully delivered
Listed Manufacturing
"2024 Zhejiang Export Brand" Zhejiang Jingrui, showcased 12-inch reduced-pressure epitaxy
Companies by Value
its 8-inch conductive silicon equipment
SG showcased at SEMICON China
J carbide substrate, 12-inch
the global semiconductor industry polycrystalline silicon carbide
substrate at PCIM Europe 2025
July October December
September
he groundbreaking
T SG was successfully recognized
J
as a "2025 Zhejiang Green and I ts subsidiary SuperSiC (Zhejiang
ceremony for the new
Low-Carbon Factory" Jingrui) won three major
manufacturing plant he first 12-inch silicon carbide
T
industry awards, namely, "2025
of SuperSiC (Zhejiang substrate processing pilot
SG received an "A" rating in
J Global Influential SiC Substrate
Jingrui) was successfully production line was officially
information disclosure from the Enterprise", "2025 Globalization
held in Penang, Malaysia put into operation
August
Shenzhen Stock Exchange for the Pioneer Enterprise Award", and
he 2025 Welcome Event
T 12 consecutive years "2025 Excellent Product Award"
for new graduates came SG successfully held its
J
November
to a successfully close 2025 Annual Strategic
Seminar
SG launched its full-process
J
SG's 12-inch silicon
J solution for square silicon wafers
wafer final polishing to the global market
equipment was awarded
SG's 12-inch semiconductor-
J
"2025 Zhejiang Excellent
grade mono-crystal puller was
Industrial New Product"
successfully delivered to overseas
customers
ESG Honors National Level Provincial Level Industrial Level
MSCI ESG rating upgraded to A op 500 Chinese Private Manufacturing
T Zhejiang Export Brand Hurun China Top 500 (6 consecutive years)
Enterprises 2025
Wind ESG rating upgraded to AA 2025 Zhejiang Green and Low-Carbon Factory orld's Top 100 Solar PV Brands (PVBL
W
op 500 Private Enterprises in R&D Investment
T Ranking)
warded an "A" ESG Rating by Sino-Securities
A 2025 025 Zhejiang Top 100 Manufacturing
Index (SSI) Enterprises he 3rd Siemens China Operational Pioneer
T
op 500 Private Enterprises by Invention
T Excellence Award
warded an "AA" ESG Rating by China
A Patents 2025 025 Zhejiang Advanced Level Intelligent
Securities Index (CSI) Factory lobal Influential SiC Substrate Enterprise
G
op 500 Chinese Listed Manufacturing
T 2025
chieved an "A" rating in information
A Companies by Value 2024 025 Zhejiang Top 200 Private Enterprises in
disclosure from the Shenzhen Stock Exchange R&D Investment
for 12 consecutive years op 100 Chinese Listed Equipment
T
Manufacturing Companies by Value 2024 025 Model Enterprise of Innovation in
Autonomous Region
ey Software Enterprises Encouraged by the
K
State
subsidiaries listed as Specialized, Refined,
Special, and Innovative Little Giants
Responding to the UN Sustainable Development Goals (SDGs)
JSG supports the United Nations 2030 Agenda for Sustainable Development and promotes the realization of the UN
Sustainable Development Goals (UN SDGs 2030) through its actions.
SDG 17:Partnerships for the Goals SDG 3: Good Health and Well-being
Corresponding Chapters: Chapter 1, Chapter 3, Chapter 4 Corresponding Chapter: Chapter 4
JSG empowers technological innovation through industry-university-research cooperation, JSG has established an occupational health management system covering all
jointly establishing research centers with universities and setting up special science employees, conducts regular safety training and emergency drills, provides
and education funds; It advances cooperation on smart factories and green low-carbon complete welfare facilities to care for employees' physical and mental health.
technologies with strategic partners; continuously optimizes the supplier empowerment
mechanism to build a transparent, resilient and sustainable industrial chain ecosystem.
SDG 4: Quality Education
SDG 16:Peace, Justice, and Strong Institutions
Corresponding Chapters: Chapter 3, Chapter 4
JSG promotes industry-university collaborative education, and builds a joint training
Corresponding Chapter: Chapter 1
platform for integrated circuits and intelligent manufacturing. Relying on "Jingsheng
JSG continuously improves its corporate governance structure, strengthens the professional
Academy" , it provides tiered and categorized training to support employees in skill
functions of the Board of Directors, strictly implements anti-corruption policies, keeps
upgrading and academic advancement.
reporting channels open, enhances anti-corruption and integrity education, adheres to the
principle of fair competition, and effectively protects investors' rights and interests.
SDG 5: Gender Equality
SDG 13:Climate Action
SDGs
Corresponding Chapter: Chapter 4
JSG guarantees equal employment and development opportunities for female employees,
Corresponding Chapters: Chapter 2, Chapter 3
provides targeted care measures, and fosters an inclusive and diverse workplace culture.
JSG firmly seizes opportunities in clean technologies, increases investment in this field,
formulates climate targets, identifies climate-related risks, implements energy-saving
projects such as photovoltaic construction and lighting retrofitting, advocates low-carbon
commuting for employees, and promotes the green transformation of its operations. SDG 8: Decent Work and Economic Growth
Corresponding Chapter: Chapter 4
SDG 11:Sustainable Cities and Communities JSG standardizes employment in accordance with the law,prohibits forced labor
and child labor, provides market-competitive remuneration and equity incentives,
Corresponding Chapters: Chapter 2, Chapter 5 establishes a "three-sequence" career development path, and regularly organizes
JSG adheres to the eco-friendly and low-carbon design philosophy. While promoting skill competitions and employee capability improvement training to promote talent
clean technologies, it carries out rural revitalization and public welfare volunteer development.
activities to support the sustainable development of cities and communities.
SDG 9: Industry, Innovation, and Infrastructure
SDG 10:Reduced Inequalities
Corresponding Chapter: Chapter 3, Chapter 2
JSG attaches great importance to R&D investment, continuously improves the
Corresponding Chapter: Chapter 4
technological innovation system, strengthens the research and commercialization
JSG implements diversity and equal employment policies, and zero-tolerance discrimination.
of scientific research achievements, and leads the development of the global
It provides an inclusive working environment and festival care for employees with disabilities,
photovoltaic equipment industry with innovative technologies and products, so as
veterans and ethnic minorities, fostering an equal and positive workplace.
to support industrial upgrading and infrastructure modernization.
Building on Strong Governance
for Sustainable Growth
JSG continuously optimizes its corporate governance model, and constantly
consolidates the foundation for stable and sustainable development by
improving its governance structure and enhancing internal control and risk
management systems. The Company strictly upholds the bottom line of
business ethics, strengthens information security guarantees, and is committed
to safeguarding the legitimate rights and interests of all stakeholders. Always
adhering to compliant operations, the Company realizes long-term, stable and
sustainable value growth by improving governance efficiency.
Corporate Governance
ESG Management
Compliance and Risk Management
Business Ethics
Information Security and Privacy Protection
Corporate Governance Committee
Name
Key Responsibility
Committee
Independence
The 6th Audit Committee consists
Be responsible for reviewing the Company's
of Zhang Hongying (Chairperson),
JSG strictly complies with national laws, regulations and regulatory requirements, and has established a corporate financial information and its disclosure, supervising
Zhao Jun and Wang Jing, all of
governance structure with corresponding rights and responsibilities, standardized operations and effective checks and evaluating internal and external audit work,
Audit Committee whom are independent directors
and balances. The Company has set up a governance framework with the General Meeting of Shareholders as the and internal control.
of the Company.
highest authority, the Board of Directors as the decision-making body, and the management as the executive body.
By clarifying the boundaries of rights and responsibilities and standardizing decision-making procedures, the
Be responsible for studying and providing The 6th Strategy and Investment
Company ensures the scientificity and soundness of corporate governance.
recommendations on the Company's long?term Committee consists of Cao Jianwei
During the reporting period, the Company actively implemented the requirements of the newly revised Company development strategy, major investment decisions (Chairperson), Qiu Minxiu, He
Strategy and Investment and other material matters affecting the Company's Jun, Zhou Zixue and Wang Jing,
Law . With the approval of the 2025 Annual General Meeting of Shareholders, the Company officially abolished the Committee
Board of Supervisors and integrated its supervisory functions into the Audit Committee of the Board of Directors, development. including 1 independent director.
further optimizing the governance structure and substantially improving supervision efficiency. The Audit Committee
fully assumed the functions of the former Board of Supervisors, focusing on in-depth supervision of the authenticity Be responsible for formulating selection standards The 6th Nominating Committee
of financial information, the effectiveness of internal control and the compliance of senior management in and procedures for directors and senior management, consists of Wang Jing (chairperson),
performing their duties, ensuring that the Company operates in a standardized manner under the rule of law. selecting and reviewing candidates for directors and senior Zhao Jun, and Zhu Liang;
management and their qualifications, and putting forward
General Meeting of Shareholders suggestions to the Board of Directors on matters such as The Committee includes 2
Nominating Committee nomination and appointment/removal of directors and independent directors and 1
appointment/dismissal of senior management. employee director.
As the highest authority, the General Meeting of Shareholders exercises the right to decide the Company's business
policies and investment plans in accordance with the law, and deliberates on major matters concerning the
Be responsible for formulating the assessment standards
Company.
for directors and senior management, and conducting
The 6th Remuneration
Key Performance assessments; formulating and reviewing remuneration
and Evaluation Committee
policies and plans for directors and senior management,
consists of Zhao Jun
including remuneration determination mechanisms,
(chairperson), Wang Jing, and
During the reporting period, the Company held 4 General Meetings of Shareholders, and considered and Remuneration and
decision-making procedures, payment and suspension
Zhang Hongying, all of whom
Evaluation Committee as well as recovery arrangements, and making
approved 15 proposals. recommendations to the Board of Directors on matters such
are independent directors of
the Company.
as the remuneration of directors and senior management
and employee shareholding plans.
Board of Directors
Responsibilities and Independence of the Committees under the Board of Directors
The Board of Directors of the Company is a permanent decision-making body, mainly exercising the powers granted by
laws, regulations, the Articles of Association, and the General Meeting of Shareholders, and is accountable to the General Effectiveness of the Board of Directors
Meeting of Shareholders. The Board of Directors of the Company has established four specialized committees: Nominating,
Remuneration and Evaluation, Audit, and Strategy and Investment. The rules of procedure for each committee have been The Company continuously improves the operational effectiveness of the Board of Directors to ensure the scientific
revised and improved, operating strictly according to the rules of procedure of each specialized committee, providing formulation and efficient implementation of decisions. The Company has clearly stipulated in the Articles of
scientific and professional opinions and references for the decision-making of the Board of Directors. Association matters such as the powers and functions of the Board of Directors and its specialized committees, the
convening of meetings, and voting methods. Board Meetings shall be held only when more than half of the directors
are present, thereby ensuring the effective operation of the Board.
Key Performance
During the reporting period, the Company held a total of 9 Board Meetings and reviewed and approved 45
proposals, with a director attendance rate of 100%.
Independence and Diversity Remuneration and Evaluation
The Company attaches great importance to the independence, diversity, and professionalism of the composition of
The Company has formulated the Remuneration Management System for Directors and Senior Management , with the
the Board of Directors. The Company has formulated systems such as the Independent Director Work System and the
General Meeting of Shareholders deciding on matters pertaining to the remuneration of directors. The Board of Directors
Special Meeting Work System for Independent Directors , and continuously optimizes the composition of the Board. When
determines the remuneration, and rewards and penalties of senior management. The Remuneration and Evaluation
nominating directors, the Company comprehensively considers candidates' professional backgrounds, work experience,
Committee under the Board of Directors is responsible for formulating the assessment standards for directors and senior
and knowledge and skills. The Nominating Committee regularly reviews and supervises the composition of the Board
management, conducting assessments, and formulating and reviewing remuneration policies and plans for directors and
each year to ensure diversity and complementarity in members' skills, experience, knowledge, age, and gender.
senior management. The Company continuously improves the assessment and remuneration management system for
Members of the Company's Board of Directors possess extensive industry experience and collectively span diverse directors and senior management to ensure the fairness and reasonableness of their remuneration.
professional domains, including the semiconductor sector, accounting, and legal affairs, forming a multidimensional
The Company's remuneration policies and plans take into account the average annual salary level of the industry in
governance insight system. By leveraging expertise across these fields, the Company has effectively enhanced the
which the Company operates and the Company's current conditions, and link the annual remuneration of directors
Board's scientific decision-making level, strategic execution capability, and risk prevention and control effectiveness,
and senior management to ESG-related indicators such as compliant operations, business ethics, product innovation
while safeguarding investors' interests and solidifying the professional foundation of corporate governance.
and R&D, talent attraction and retention, product quality, and customer complaints. This mechanism fully motivates
the directors and senior management and strengthens the constraints on responsibility objectives.
Key Performance
Key Performance
As of the end of the reporting period, the Company completed the election of the sixth Board of Directors.
During the reporting period, the total remuneration paid to directors and senior management amounted to
The current Board consists of 9 directors, including 3 independent directors, 1 employee director, and 3
CNY 1,796.78 ten thousand.
female directors.
Remuneration Clawback Provisions
Independence and Diversity of the Members of the Board of Directors
The Company clearly stipulates in the Remuneration Management System for Directors and Senior Management
the payment suspension and clawback mechanism for the remuneration of directors and senior management in
Professional Ability order to protect the legitimate rights and interests of the Company and its shareholders. Where directors or senior
Name Position Gender Age management breach their duties and cause losses to the Company, or are at fault for illegal or non-compliant acts
Industry Risk Financial such as financial fraud, misappropriation of funds, or irregular guarantees, the Company shall, depending on the
Experience Management Management
severity of the circumstances, reduce or suspend the payment of unpaid performance-based salary and medium- to
long-term incentive income, and recover in full or in part any performance-based salary and medium- to long-term
Cao Jianwei Chairman Male 48
incentive income already paid during the period in which the relevant acts occurred.
Qiu Minxiu Non-independent director Female 81 Composition of Directors' and Senior Management's Remuneration
The remuneration of the Company's directors and senior management consists of basic salary, performance-based
He Jun Non-independent director Male 57
salary, and medium- to long-term incentive income. In principle, performance-based salary accounts for no less
than 50% of the total of basic salary and performance-based salary. The Company conducts annual performance
Mao Quanlin Non-independent director Male 56
evaluations, based on audited financial data, and determines that a certain proportion of performance-based salary
will be paid after the disclosure of the annual report and the completion of the performance evaluation.
Zhou Zixue Non-independent director Male 70
Zhu Liang Employee director Male 47
Zhao Jun Independent director Male 48
Wang Jing Independent director Female 44
Zhang Hongying Independent director Female 60
Information Disclosure
Independent I ndependent directors receive a fixed director allowance. They are not subject to the
In strict accordance with laws and regulations including the Company Law of the People's Republic of China , the
Directors Company's internal performance assessments linked to remuneration.
Securities Law of the People's Republic of China , and the Measures for the Administration of Information Disclosure
by Listed Companies , the Company has established and refined internal control systems such as the Information
Disclosure Management System , and has always fulfilled its information disclosure obligations in a proactive,
truthful, accurate, timely, fair, complete, and effective manner, to safeguard against information disclosure risks.
he chairman of the Board receives remuneration in accordance with the Company's
T
Key Performance
remuneration management policies, based on his management functions and
attainment of corporate performance targets.
During the reporting period, the Company disclosed a total of 79 announcements and has not been subject
Non- on-independent directors who hold specific positions in the Company's operational
N
Independent management team receive remuneration in line with the Company's position-based salary to any penalties for violations of information disclosure regulations.
Directors system for the role they hold within the Company, and no additional director allowance or
remuneration will be paid.
The Company has received an " " rating in the Shenzhen Stock Exchange's annual information disclosure
A
on-independent directors who do not hold any position in the Company's operational
N evaluation for 12 consecutive years.
management team shall receive a fixed director allowance.
Protecting Investors' Rights and Interests
In strict accordance with laws and regulations including the Guidelines
emuneration for senior management comprises basic salar y, performance-
R
for Investor Relations Management of Listed Companies and the Self-
based salary, and medium- to long-term incentive income. The basic salary is
regulatory Guidelines for Listed Companies No. 2 - Standardized
determined based on fixed factors such as educational background, professional
Operation of Companies Listed on GEM of Shenzhen Stock Exchange , the
Senior experience, years of service, job responsibilities, and industry salary levels.
Management Company has established and improved internal control systems such as
erformance-based salary is based on operating targets as the assessment benchmark and
P the Investor Relations Management System to continuously strengthen
determined according to the realization of operating benefits and the work performance the professional foundation of investor relations management. The
delivered by senior management. Company is committed to building a public, fair, and transparent multi-
dimensional communication framework. Through ongoing and in-depth
interaction mechanisms, the Company actively responds to the concerns
of investors and potential investors, fully demonstrating its core
competitive advantages and overall brand influence, and continuously
Remuneration Standards for Directors and Senior Management
enhances its value recognition in the capital market.
Additionally, the Company attaches great importance to protecting
the legitimate rights and interests of minority investors. It strictly
Details of remuneration composition for non-independent directors and the president during the
standardizes the convening, conduct, and deliberation procedures of the
reporting period are as follows: General Meeting of Shareholders to ensure all shareholders, especially
minority shareholders, have equal rights to information, participation,
and voting on major company matters.
Variable
Fixed Remuneration
Remuneration
(CNY 10,000) Total
Member Position (CNY 10,000) Key Performance
(CNY 10,000)
Year-End
Salary Benefits
Bonus
Since the year of listing, the Company's cash dividend rate has been maintained at over 20%, with a
Non-independent director
He Jun 124 0.08 90 214.08 cumulative dividend amount exceeding CNY 3.4 billion (including the 2025 profit distribution).
and president
ESG Management Board of
It is the highest ESG governance and decision-making body responsible for
setting ESG strategies and long-term plans, deciding on ESG-related risks,
Directors
and reviewing external disclosures.
JSG aims to "become a leading equipment supplier of semiconductor materials, facilitate high-tech industry
development for green intelligent manufacturing", actively assuming responsibilities to shareholders, the
Strategy and Oversees the development of overall and specialized strategic plans, reports
environment, customers, employees, and the community. JSG builds its ESG strategic guidelines starting from six
Investment regularly to the Board of Directors, and oversees the coordination, guidance
dimensions: robust governance, environmental protection, technology R&D, collaboration with multiple parties, Committee and supervision of major ESG matters and related decisions.
caring for employees, and contributing to the society.
Develops ESG management policies, manages external communication and information
ESG Working
disclosures, reports progress and outcomes to the Strategy and Investment Committee,
Group
and coordinates daily ESG management among all departments.
• Empowering new energy ESG Management Organizational Structure of JSG
• Business ethics
products
• Actively creating shareholder • Continuous innovation
Double Materiality Analysis
• Promoting green operation and
value • Promoting industry
production
• Solid corporate governance and development
• Actively address and mitigate
operations
climate change For the year 2025, the Company conducted a double materiality analysis based on ESG-related guidelines from stock exchanges,
industry hot topics, ESG rating requirements from entities such as MSCI, as well as best practices from industry peers. This was
Clean Technology
Robust Governance Technology R&D combined with the Company's own ESG development and key concerns of stakeholders. A total of 26 sustainability-related
Opportunities
topics were identified and assessed, providing a clear direction for the Company's sustainable work management.
Overview of Company Activities Topic Identification Communication and
Analysis Report
and Business Context and Screening Survey
To Understand Based on the 21 topics The Company Based on the results
• T ransparent promotion paths
company activities, outlined in the stock conducted of the communication
• Stable supply chain • C omprehensive employee • Focusing on vulnerable groups
business relationships, exchange Guidelines, communication with and survey, combined
• Becoming the most trusted training system • Conducting public welfare
external operating and through industry internal and external with expert analysis,
partner for customers • Caring for employee health donations and activities
environments, policy analysis and stakeholders through the material topics were
and life
and impacted peer benchmarking, various channels optimized. The Board
stakeholders. 26 topics related including online of Directors reviewed
Multi-stakeholder
Employee Care Social Contribution to the Company questionnaires, the completeness and
Collaboration
were identified and covering groups accuracy of the material
summarized. such as employees, topics, determined their
customers, investors, financial materiality
ESG Management Structure suppliers, service and impact materiality,
providers, government prioritized them
and regulatory bodies, and developed the
The Company continuously improves its ESG management system and has established a three-tier organizational
media, industry materiality matrix.
structure of "decision-making - management - execution" with the Board of Directors serving as the highest
associations, and The report specifically
decision-making body. Under the Board of Directors, the Strategy and Investment Committee is responsible for
partner organizations. addressed topics of
managing and coordinating ESG matters, while an ESG working group composed of heads of various functional
particular concern to
departments implements specific tasks. Leveraging the "three lines of defense" ESG supervision mechanism, the
stakeholders.
Company strengthens its management of ESG-related impacts, risks, and opportunities, ensuring the compliance
and robustness of ESG management. This structure provides a solid organizational foundation for fulfilling ESG
commitments and achieving its sustainable development goals. Double Materiality Analysis Process
Stakeholder Engagement
Highly Material
JSG attaches great importance to stakeholder communication management, treating stakeholder expectations
and demands as key references for corporate sustainability efforts, and has established a diversified, regular
media, continuously enhancing governance transparency and accountability.
Stakeholder Communication and
Impact Materiality
· Internal system publication
· Protection of legitimate rights and
interests
Employees · Comprehensive compensation system
· Skill training and career development
· Smooth promotion system
guidance
· Diverse employee activities
Not Material
· Protection of shareholder equity · Smooth investor communication
Investors and
· Investor relations management channels
Shareholders · Intellectual property protection · IP training and protection
Not Material Financial Materiality Highly Material · Adherence to business ethics · Establishing an integrity and ethics
management system
Environmental Topics Social Topics Governance Topics
· Internal control system
· Law-abiding business operations
· Learning and implementing various
and Regulatory requirements
Technology Opportunities* 24.Compliance and Risk Management · Promoting rural revitalization and
realizing "carbon peaking and carbon
Management 12.Human Capital Development
· Supply chain management · Supplier assessment, exchange, and
Suppliers
(Service
Protection · Mutual benefit and win-win · Transparent procurement
Protection Protection · Product responsibility management
· Comprehensive quality management
system
· Technical discussions
Customers cooperation
· Smooth communication channels
surveys
· Satisfaction surveys and feedback
· Industry upgrade · Industry forums
Community Contribution
Community · Volunteer services and community
· Social welfare
activities
and Public · Rural revitalization
Note: * indicates financially material topics. In the report, these topics are analyzed and disclosed according to the four key · Targeted support
elements: governance, strategy, risk and opportunity management, indicators and targets.
Compliance and Risk Management Business Ethics
JSG adheres to business ethics codes by establishing a robust integrity system and strengthening the coordination
JSG has always prioritized risk prevention and continuously improved its corporate governance structure and risk of internal and external supervision, ensuring full compliance with legal and regulatory requirements. The Company
management system. The Company has established a sustained and routine risk management operating system, regularly conducts anti-corruption education and fosters compliance awareness among all employees, striving to create a
clearly defining the responsibilities and authority for risk management at all levels. Comprehensive risk management transparent and fair business ecosystem.
processes are in place, and effective measures are taken to prevent and resolve various types of risks, ensuring the
Company's stable and sustainable development. Governance
JSG strictly adheres to laws, regulations, and the requirements of stock exchanges and regulatory bodies. The Company
has established and publicly disclosed management systems such as the JSG Anti-Corruption Policy , designating the
Board of Directors serves as the highest supervisory body for anti-corruption, with the Audit Committee of the Board
Risk Risk Target Risk Risk
Risk Control acting as the governing body. The Internal Audit Department, established as the permanent anti-corruption body,
Identification Assessment Setting Supervision Governance
operates with the Regulation Office and other functional departments to ensure coordinated implementation. This
framework constitutes a comprehensive and well-defined organizational structure for anti-corruption management.
Through the implementation of specific internal control procedures and mechanisms, JSG effectively prevents and
Risk Management Process cracks down on fraudulent activities, strengthens integrity and compliance governance, reduces operational risks, and
standardizes business conduct, thereby providing a strong foundation for the Company's steady development.
Case Organizing a Legal Awareness Campaign to Strengthen Corporate Compliance and Security Defenses Board of Directors
To further enhance employees' awareness of the rule of law and improve their ability to mitigate risks,
the Company invited the Deputy Director of the local Police Station to deliver a legal lecture in September Audit Committee
and finance departments participated in the lecture. The lecture focused on legal risks in both corporate
Internal Audit Department
operations and employees' personal lives and work. With real cases as examples, the relevant laws and
regulations were explained in a clear and accessible manner, warning employees to firmly establish an
awareness of the rule of law and continue to strengthen the Company's risk prevention and control system. Regulation Office Functional Departments
Board of Directors: Audit Committee: Internal Audit Regulation Office:
Oversees the Manages anti-corruption Department: A Ensures the enforcement
development and and anti-bribery efforts, permanent specialized of decisions regarding
implementation of reviews and supervises anti-corruption body responsible personnel,
anti-corruption and the effectiveness of under the Board of maintaining accountability
anti-bribery policies, the anti-corruption Directors responsible within the organization.
ensuring alignment with management system for tasks such as anti-
Functional departments:
laws and regulations and and related policies, and corruption audits,
Each department
corporate governance reports to the Board of receiving and handling
undertakes anti-
standards. Directors. reports, and conducting
corruption work within
investigations. It
the department, monitors
regularly reports to
employees' compliance
the Audit Committee
with the Company's rules,
on audit results and
and collaborates with the
reported cases to
Audit Department and
ensure effective policy
other relevant departments
enforcement.
to uphold anti-corruption
standards.
?Legal Risk Training
Organizational Structure and Responsibilities of Anti-corruption Management
Strategy Strong business ethics in This increases
Embed business
the semiconductor and opportunities
Market ethics requirements
The Company systematically identifies potential business ethics-related impacts, risks, and opportunities in the photovoltaic industry to participate in
Access and Medium-to- into business
course of its operations, based on its industry characteristics and business model. By improving institutional chain can help meet Medium high-end projects
Collaboration Long term processes and
frameworks, strengthening internal controls, and enhancing process supervision, the Company continuously compliance requirements and international
Opportunities partnership
of major customers and cooperation and
mitigate the potential impacts of improper behavior on business stability and reputation. This approach provides management
international partners. expands business space
robust support for the Company's sound operation and long-term sustainable development.
Note: Short term refers to within 1 year, medium term to 1-5 years, and long term to 5 years or more.
Business Ethics Risk Identification List
Impact, Risk and Opportunity Management
Possibility The Company continues to deepen anti-corruption risk management, conducting business ethics and anti-corruption
Risk Response
Risk Type Risk Description of Risk Financial Impact audits and risk screenings across all business departments, strictly monitoring compliance with business ethics
Timeframe Measures
Occurrence standards. For high-risk businesses and personnel, the Company conducts annual anti-corruption audits; for other
business departments, the Company dynamically carries out self-inspections and corrections and risk screenings to
The semiconductor and
This may result in ensure anti-corruption risk audits cover all operational aspects every three years, preventing corruption risks at the
photovoltaic industry chain
fines, litigation, source and providing strong safeguards for stable business operations.
involves large transaction
or contract Improve the
amounts and long project
Compliance terminations, business ethics Key Performance
cycles, with frequent Medium-to-
and Integrity Medium increasing and compliance
interactions with customers Long term
Risk compliance costs management
and suppliers. Inadequate
and negatively system During the reporting period, the Company organized 9 corruption risk screenings, achieving 100%
internal controls or integrity
affecting business
management may lead to coverage of all operational sites in the past three years.
stability
violations or improper conduct
Standardize
Reputation Whistleblowing and Whistleblower Protection Mechanism
Attention from customers, the disclosure
damage may
investors, and regulatory of business
reduce customer The Company has established a sound and robust corruption reporting mechanism, utilizing diverse channels such
bodies on business ethics Short-to ethics-related
Reputational cooperation as hotlines, email, and anonymous mailboxes to widely solicit supervision and reports from internal and external
and compliance is increasing. Medium Medium information and
Risk willingness,
Insufficient management or term enhance the stakeholders on fraudulent activities. Throughout case acceptance and investigation, the Company strictly adheres to
worsen financing
disclosure may affect external transparency the provisions of the JSG Anti-Corruption Policy and the information confidentiality protocols, rigorously protecting
terms, and lower
evaluations of compliance whistleblower identities and report details, and prohibiting the disclosure of investigation materials to the outside
market valuation
management without legal procedures. Additionally, the Company explicitly prohibits any form of retaliation against whistleblowers
or investigators. For breaches of confidentiality or acts of retaliation, the Company will implement strict accountability,
Note: Short term refers to within 1 year, medium term to 1-5 years, and long term to 5 years or more. imposing disciplinary actions such as removal from office, termination of employment contracts; cases involving criminal
offenses will be referred to judicial authorities in accordance with the law for criminal liability.
Business Ethics Opportunity Identification List
Online Reporting Channel Whistleblowing Hotline Whistleblowing Email
Opportunity Opportunity Response JSG WeChat Official
Opportunity Description Likelihood Financial Impact
Type Timeframe Measures
Account
ia@jsjd.cc
(ext. 8081)
It helps solidify Continuously
Compliance Strengthening business customer improve Address for Complaint by Letter or in Person
Operations ethics and compliance relationships, compliance
Medium-to- Medium-to-
and Trust management can enhance stabilize order systems and Internal Audit Department, Zhejiang Jingsheng Mechanical & Electrical Co., Ltd., No. 500
Long term High
Enhancement trust among customers, sources, and internal controls,
Shunda Road, Linping District, Hangzhou City, Zhejiang Province
Opportunities partners, and investors. reduce operational and strengthen
uncertainty compliance culture
Whistleblowing and Complaint Channels
Fair Competition
Upon receiving For employees Persons suspected The results shall be Additional review The Company regards integrity in operations and information transparency as key principles of corporate
a report, an who violate this of violating laws notified internally and supervision governance and business cooperation, continuously promoting standardized and orderly cooperative relationships
investigation policy or other or committing and to necessary shall be applied to with upstream and downstream suppliers and partners. In business activities, the Company strictly adheres to
shall be launched applicable laws crimes shall be external third high-risk business market competition rules, conducts commercial activities in accordance with the law, and resolutely prevents unfair
immediately and regulations, transferred to parties, and further activities, with regular competition such as price monopolies. In 2025, the Company did not have any negative incidents violating the
and a written the Company judicial authorities anti-corruption reviews and updates principle of fair competition.
investigation report will impose in accordance measures shall be to the Company's
shall be issued. corresponding with the law for implemented. internal control In brand communication and external information disclosure, the Company adheres to a compliance-oriented
disciplinary actions handling. and compliance approach, continuously improving the brand promotion information management system to ensure the truthfulness,
based on the procedures. accuracy, and standardization of externally released information. The Company's Brand Promotion Department
nature and severity formulated and implemented the JSG Brand Promotion Information Release Management Process , clarifying the
of the violation. division of responsibilities for planning, execution, review, and improvement, effectively ensuring the compliance
and controllability of brand communication activities. Meanwhile, the Company regularly conducts training on
Whistleblowing Handling Process anti-unfair competition laws and regulations to continuously enhance employees' compliance awareness and risk
prevention capabilities.
Business Ethics Promotion and Training
Indicators and Targets
The Company is committed to fostering an integrity-driven culture by clarifying ethical boundaries. New hires must
sign an Integrity Commitment Letter and undergo specialized training on anti-corruption, anti-monopoly, and anti-
The Company consistently adheres to the business ethics management goals of "100% coverage of employee
unfair competition to strengthen compliance awareness at the source. Through multiple channels—employee
business ethics training and 100% coverage of business ethics risk screening". It regularly monitors relevant
handbooks, intranet communications, case studies, and regular training—the Company ensures consistent and
targets and metrics, conducts prudent assessments of whistleblowing leads, and strengthens the promotion and
effective dissemination of anti-corruption policies and legal requirements, strictly prohibiting improper benefits and
dissemination of business ethics training. During the reporting period, the performance of the Company's business
establishing a sustainable compliance framework.
ethics-related indicators is presented in the table below:
Strengthening the Legal Defense Line and Conducting Special Education Lectures on Anti-
Case Index Unit 2025 Data
Corruption and Anti-Bribery
In January 2025, to enhance the legal awareness and risk prevention capabilities of key personnel, the Company's Commercial bribery and corruption incidents Case 0
EHS Department invited experts from the Economic Crime Investigation Brigade of the Shangyu District Public
Security Bureau to conduct a specialized legal lecture. The lecture provided an in-depth explanation of the legal Litigation or major administrative penalties due to the
Case
Company's unfair competition practices
definitions and consequences of common
crimes such as occupational embezzlement,
bribery, and misappropriation of funds, Total number of directors and management personnelNote
Person
trained on anti-commercial bribery and anti-corruption
and conducted in-depth analysis combined
with the typical cases from the industry and
within the Company. Key business personnel, Percentage of directors and management personnel Note
%
trained on anti-commercial bribery and anti-corruption
financial personnel, contract management
personnel and relevant responsible persons
from various departments all participated in Total number of employees trained on anti-commercial
Person
bribery and anti-corruption
the training as required. This training further
enhanced the legal awareness and compliance
awareness of management personnel, laying a Percentage of employees trained on anti-commercial
%
bribery and anti-corruption
more solid legal foundation for the Company's
healthy and stable development. ?Integrity Training Session
Note: "Management" personnel refer to employees at Grade 7 and above.
Information Security and Privacy Protection Information Security Assurance Initiatives
The Company continuously improves data compliance management in accordance with external laws, regulations, and internal
management requirements. It conducts compliance risk assessments, daily data security inspections, compliance reviews,
JSG strictly adheres to the requirements of laws and regulations such as the National Security Law of the People's
and compliance training for the collection, use, transmission, and processing of the privacy of employees, visitors, and partners
Republic of China , Cyber Security Law of the People's Republic of China , and Data Security Law of the People's Republic
during daily operations to safeguard the legitimate privacy and information security of the Company and its customers.
of China , continuously consolidating the foundation of information security compliance. The Company continuously
improves its management system, issuing and revising multiple core regulations such as the Information Management During the reporting period, the Company optimized systems such as the Data Backup Strategy Execution Form and Data
Manual , Confidential Area Management and Control Procedure , and Information Data Management and Control Backup and Recovery Registration Form to prevent group data loss or damage due to hardware damage, software failures,
Procedure . Simultaneously, the Company aligns with the ISO27001 international standard to continuously optimize its human errors, virus infections, etc., thus ensuring the security and integrity of the Company and customer data.
information management system model, strengthens the security protection mechanism across the entire process and all
elements, and comprehensively fortifies the barriers for information privacy and data security.
Data Security Inspection Information Security Training and Drills Hardware and Software Protection
Information Security Management System Model
The Company enforces strict The Company enhances For technical protection,
data control, conducts daily data employees' information security protection systems including
Planning
security inspections to assess awareness through orientation file encryption system, network
Stakeholders Stakeholders potential risks in data storage, training for new employees, access control system and data
Establishment
Requirements and Expectations
transmission, and processing, information security promotion leakage prevention project are
promptly identifies and fixes via the OA system, on-site deployed to safeguard data
Information Security
Information Security
vulnerabilities. training by local public security security.
Management
Maintenance Implementation police and other measures.
Implementation
and
and Operation
Disposal Improvement
Information Security Assurance Initiatives
Key Performance
Monitoring
and Review
Inspection
During the reporting period, the Company conducted 13 sessions of information security training for new
employees, 2 special cybersecurity training sessions for management, and issued 27 information security
Information Security Management Structure
alerts on the corporate portal.
The Company has established a three-tier governance structure
of "Board of Directors—Information Security Management
Committee—Information Security Working Group", Case Cybersecurity Experts Invited for Information Security Awareness Training
comprehensively strengthening the organizational foundation
of information security management. The Information Security
Management Committee is chaired by the Company's Chairman In November 2025, the Company specially invited cybersecurity
Board of Directors experts from the Public Security Subbureau of Shangyu District
of the Board of Directors, with the Vice President of Operations
serving as the Executive Deputy Director, responsible for overall to deliver a special training session on information security
coordination and decision-making and top-level supervision. awareness for management, covering more than 60 managerial
At the execution level, the Information Security Group of the personnel. Based on real cases, the training systematically
Information Security
Excellence Performance Management Department collaborates Management elaborated on cybersecurity threats, data protection measures and
with the IT Department to lead cross-functional cooperation with Committee risk response skills in office and daily scenarios. The expert training
multiple departments such as the Human Resources Center, EHS aimed to improve management's awareness of information
Department, and Administration office, systematically advancing security protection and emergency response capability building.
Information
privacy protection and information security system development. Security Working It consolidated a secure foundation for the Company's digital
It submits regular monthly progress reports are submitted to the Group transformation, and fully demonstrated the Company's high
committee to ensure the continuous and effective operation of priority on information security and data privacy. ?Information Security Training
the information security management mechanism. Organization Chart of Information Security System
Embracing Green Practices
for Shared Value Creation
With the mission of "building a leading enterprise of semiconductor
materials and equipment and developing green intelligent high-tech
manufacturing industry", JSG regards sustainable environmental
management as the cornerstone of corporate development. The
Company is committed to addressing climate change, systematically
promoting efficient use of water and energy, continuously advancing
green operations, and attaching importance to ecological protection
and biodiversity protection. Meanwhile, the Company strives to
enhance environmental awareness among all employees, balances
environmental performance and business development, and steadfastly
pursues long-term goals of sustainable development.
Ecological and Environmental Management
Addressing Climate Change
Resource Utilization
Management of "Three Wastes"
Circular Economy
Ecological and Environmental Management Environmental Risk Management
To ensure effective control of environmental risks in operations, the JSG
JSG strictly complies with national laws and regulations including the Environmental Protection Law of the People's has formulated a series of system documents including the Emergency Plan
Republic of China and the Fire Protection Law of the People's Republic of China , as well as local environmental for Environmental Pollution Incidents . Under these systems, the Company
requirements where it operates. Drawing on international standards such as ISO 14001, the Company has established systematically promotes the construction of environmental protection facilities,
a comprehensive Environment, Health and Safety (EHS) management system. It has set up an EHS management routine environmental monitoring and emergency response capacity. Through
team and formulated the EHS Environmental Management Manual , clarifying its environmental management environmental impact assessments, the Company identifies, evaluates and
philosophy and guidelines, continuously improving management systems, and effectively reducing the negative prevents environmental risks across business units, and regularly organizes
environmental impacts of operations. environmental compliance training and environmental risk emergency drills to
continuously enhance emergency response capabilities. With institutionalized,
routine and company-wide management practices, the Company strives to
achieve long-term green and sustainable development.
Environmental Environmental
Management Philosophy Management Policy Key Performance
•E
stablish green concepts •C
omply with environmental
In 2025, the Company conducted internal environmental risk audits and identified a total of 43 issues, with
•P
romote clean production regulations
•F
acilitate high-tech industry •A
ll employees participate in control
a 100% rectification rate.
development for green intelligent •P
revent environmental pollution
manufacturing •C
ontinuously improve
•A
chieve sustainable development environment
of environment and business Case Strengthening Emergency Capacity and Building a Solid Line of Defense for Environmental Risks
Corporate Environmental Management Philosophy and Policy Ningxia JingHuan continuously identifies risks of sudden environmental incidents and optimizes risk
assessment reports for sudden environmental incidents. In September 2025, Ningxia JingHuan organized
Based on its development characteristics, the Company has set clear environmental management objectives and relevant personnel to conduct emergency drills for sudden environmental incidents. A total of 7 employees
established an annual tracking and evaluation mechanism. Environmental tasks are systematically decomposed and participated in the drill, which simulated a sudden environmental incident to test the emergency response
integrated into the daily work of all departments and employees to ensure effective operation of the environmental and implementation of measures by relevant positions. Special improvements were made to problems
management system. Meanwhile, the Company conducts environmental performance evaluation and management and deficiencies identified during the drill, further enhancing the effectiveness of preventive management,
of suppliers, jointly promotes environmental improvement across the industrial chain, and builds a "green and low- response measures and disposal capabilities, and continuously consolidating the foundation of
carbon industrial ecosystem". environmental safety management.
Achievement
Environmental Management Objective Index
Identification of important environmental
factors and effective control rate
Major environmental pollution accident 0 0 0 0
Administrative punishment for ?Chemical Safety Emergency Drill
environmental protection
Environmental Compliance Certification Case "Carbon for Future, Green for Renewal" Tree-planting Activity Held at Ningxia Park
The Company highly values the compliance, standardization and advancement
of its environmental management system, continuously improves the ISO 14001 To practice the concept of green operation, the Company organized a themed tree-planting activity
environmental management system, and actively promotes the construction at Ningxia Park. Professional technicians were specially invited to provide guidance and improve the
of a standardized system across the company. By continuously expanding the scientificity and survival rate of sapling planting. Employees actively participated in planting saplings and
coverage of the system, a number of additional subsidiaries have completed hanging adoption plates with expectations for green growth. The activity beautified the park environment
relevant certifications and maintained a high-level environmental protection and enhanced employees' awareness of ecological protection, serving as a vivid example of the Company
credit rating for a long time. This demonstrates the Company's continuous integrating biodiversity protection into park construction through concrete actions.
investment and leading position in environmental governance. In 2025, a total of
system certification, and the Company has been rated as a unit with an A-level
environmental protection credit rating by the Department of Ecology and
Environment of Zhejiang Province for several consecutive years. ISO 14001 Environmental
Management System Certification
Biodiversity Protection (Partial Display)
The Company fully recognizes the importance of biodiversity protection for sustainable development, actively responds
to international consensus and national policy guidelines, and integrates the concept of ecological protection into the
entire operation process. The Company strictly complies with the Kunming-Montreal Global Biodiversity Framework
and relevant domestic regulations, systematically assesses the potential impacts of business activities on the ecological
environment, and promotes ecological restoration and greening projects in operation areas to effectively maintain
?Tree-planting Site
the integrity and stability of the surrounding ecosystems. During site selection and construction, the Company strictly
implements environmental impact assessment procedures to ensure all business activities meet ecological protection
requirements. In 2025, no operational incidents with significant impacts on biodiversity occurred, and the Company
Addressing Climate Change
continued to fulfill its commitment to harmonious coexistence with the environment.
Develop ecological landscape
Implement tree planting and carry belts, renovate ecological
out green environmental work fishponds, and use filtration JSG fully recognizes the urgency and strategic value of addressing climate change, integrates the concept of green
systems to improve water quality development deeply into its long-term strategy, and actively responds to the national "carbon peaking and carbon
neutrality" goals. In management practices, by referring to frameworks including the Guidelines No. 17 of the
Shenzhen Stock Exchange for the Self-regulation of Listed Companies – Sustainability Report (Trial) of Shenzhen
Biodiversity Protection Measures
Stock Exchange and the Guidelines No. 2 International Financial Reporting Sustainability Disclosure Standard –
Climate-Related Disclosures published by International Sustainability Standards Board (ISSB), JSG systematically
identifies climate-related risks and opportunities, and incorporates them into its decision-making process. Through
a series of emission reduction measures and adaptive actions, the Company is committed to reducing the carbon
footprint of its own operations, enhancing climate resilience, and promoting the coordinated green and low-carbon
transformation of the industrial chain.
Governance
The Company has fully integrated climate governance into its ESG management system. Based on the Company's
ESG governance structure, it clearly defines the rights and responsibilities of all levels in addressing climate change.
The Company has established a three-level management mechanism of "Board oversight, Strategy and Investment
Committee management, and ESG Working Group execution", so as to enhance the proactivity and sustainability of
climate actions and ensure the effective advancement and implementation of relevant strategies and measures.
Climate Change Risk Identification List Continuously monitor
Global warming,
operational site risks,
rising sea levels,
conduct proper planning
Possibility and other climate Facility
Risk and risk management for
Risk Category Risk Description of Risk Financial Impact Response Measure Physical Chronic anomalies pose Low-to- maintenance costs
Timeframe Long Term new project site selection,
Occurrence Risk Risk challenges to Medium and site selection
construction, and daily
long-term and costs increase
operations, considering
stable business
chronic climate change
operations.
Extreme weather Repair or replacement risks.
such as typhoons, costs of buildings,
Develop emergency
high temperatures, production
response plans to The implementation
flooding, etc., with equipment, etc.,
minimize losses from of sustainable
increased frequency increase
natural disasters. regulations in China, Pay attention to policies
and severity, may Medium-to- Order delivery delays, Europe, and other and regulations related
Medium Conduct regular
damage buildings Long Term revenue reduction, countries and to climate change,
at production and infrastructure
liquidated damages regions, as well as Non-compliance formulate climate
office operation maintenance to bolster Medium-to-
for contract breaches Policy Risk carbon footprint High expenditures response strategies, and
sites, affecting resilience against extreme Long Term
caused by production requirements, has increase collect greenhouse gas
normal production weather.
suspension, etc., raised the standards emission data every year
operations. occur for information to effectively respond to
Physical disclosure policy changes.
Acute Risk and carbon
Risk
management.
Focus on employee
life, health, and safety,
provide protective gear Seize opportunities in
Extreme weather
Production costs for employees, and equip clean technology, actively
like typhoons, high Customers are
and administrative personnel working in high Failure to meet develop green, low-carbon
temperatures, increasingly
costs increase, and temperatures with cooling customers' ESG products, and proactively
and flooding may inclined to choose
Medium Medium-to- expenditures such devices. standards may meet customers' ESG
affect employee products from
Term High as compensation Transition Medium result in order losses requirements for suppliers
commuting safety, Implement extreme Market Risk companies with High
for employee safety Risks Term or reduced premium and product supply.
thereby impacting weather alerts and offer strong ESG records
incidents may also capacity, affecting
normal production training on health, safety, and are raising Address climate change as a
increase operating revenue
operations. and climate change requirements for key topic and communicate
and market share with stakeholders through
awareness to enhance risk suppliers.
response capabilities. sustainability reports,
stakeholder surveys, etc.
Rely on existing circular
Failure to identify Improve equipment
pickup routes and real-
and adopt green, efficiency, enhance product
time monitoring systems
low-carbon manufacturing efficiency,
to actively track weather
technologies in and continuously build
forecasts for supplier
Extreme weather Logistics and a timely manner Reduced product
locations and areas along recognized environmental
may affect supply transportation costs may result competitiveness,
routes; develop emergency Technology Medium and energy management
Physical chain stability and Medium and procurement in outdated High order losses and
Acute Risk Medium plans for business Risk Term systems both domestically
Risk disrupt normal Term costs, etc., increase product carbon revenue decline
disruptions due to weather and internationally.
production and and sales revenue performance, may happen
events like typhoons,
delivery. decreases potentially Promote green, low-carbon
and use AI algorithms to
reducing product design and application in
predict transportation risks,
value or losing products to enhance green
dynamically adjust pickup
orders. R&D capabilities.
routes and reduce risks of
sudden supply interruptions.
Note: Short term refers to within 1 year, medium term to 1-5 years, and long term to 5 years or more.
Climate Change Opportunities Identification List Case
Digital Empowerment for Climate Risk and Opportunity Management, Driving
Green Transformation of Energy Conservation and Emission Reduction
The Company actively promotes green and low-carbon transformation by introducing Siemens Smart ECC Intelligent
Energy-Carbon Management Platform. It integrates multi-source energy consumption data through an industrial
Opportunity Opportunity Opportunity Financial
Likelihood Opportunity Response IoT architecture, realizes load forecasting and energy efficiency diagnosis based on AI and big data, and improves
Type Description Timeframe Impact
equipment energy efficiency by integrating PLC, servo and frequency conversion systems. With energy Sankey diagram
visualization and microservice architecture, the platform realizes real-time monitoring, early warning and optimal
Seize opportunities in clean regulation, and constructs a closed-loop energy-carbon management system, achieving annual power savings of over
The market
technologies, launch green 10 million kWh and CO2₂ emission reduction of over 10,000 tons. In 2025, the Company won the Siemens "Operational
demand
products such as the 5th-
for energy Pioneer Excellence Award" for this practice, which provides a replicable technical path and management paradigm for
generation mono crystal puller
conservation New low-carbon the green manufacturing upgrade of the industry.
based on N-type products, provide
Market and emission Medium products bring
High customers with automated +
Opportunity reduction is Term new revenue
digital + AI big data solutions,
rising, leading growth points
promote the intelligent and green
to an increase in
development of global photovoltaic
demand for low-
manufacturing, and meet market
carbon products.
requirements.
Reduce
fossil energy
consumption, Expand the use of renewable
increase the use Use of green energy such as PV, introduce smart
Energy Medium
and proportion High power helps energy management systems to
Management Term ?3rd Siemens China Zero Carbon Pioneer Award Ceremony ?Trophy of the 3rd Siemens China Zero Carbon Pioneer Award
of clean energy, reduce costs assist in the Company's energy
and continuously usage structure transformation.
optimize the
energy structure. Indicators and Targets
Stronger risk As a leading high-end equipment manufacturer in technology and scale in the global photovoltaic industry, the
Deploy plans
management Plan emergency response measures
in advance to Company actively responds to and fully implements the national "carbon peaking and carbon neutrality)" goals and
and control for natural disasters and climate
address climate takes the initiative to assume the responsibility of green development. In accordance with mainstream domestic and
Climate capability helps change and conduct capacity-
change, mitigating Medium-to- international greenhouse gas (GHG) accounting standards, the Company systematically conducts GHG inventories. A
Change Medium lower insurance building activities to increase
and avoiding Long Term clear goal has been set with 2022 as the base year, aiming to achieve carbon peak by 2030 and carbon neutrality by
Adaptation premium rates business operation stability and
financial losses 2055. These targets systematically guide future emission reduction pathways and action plans.
and enhance earn customer recognition and
caused by climate
investor long-term partnerships.
risks.
confidence
Greenhouse Gas Emissions
Note: Short term refers to within 1 year, medium term to 1-5 years, and long term to 5 years or more.
Category Unit 2023 2024 2025
Total greenhouse gas emissions (Scope 1 + Scope 2) tCO2 276,046 308,561 339,417
Impact, Risk, and Opportunity Management Including: Scope 1 tCO2 193,232 215,993 237,592
Including: Scope 2 tCO2 82,814 92,568 101,825
The Company fully integrates climate risk management into its ESG governance system. Through systematic Greenhouse Gas Emission Intensity tCO2/CNY 10,000 Revenue 0.15 0.18 0.30
identification and assessment mechanisms, it conducts double materiality analysis of climate-related risks and
opportunities, and continuously optimizes emergency plans and adaptive measures to enhance response capacity Note: 1. It contained the GHG emission in JSG's operation and production in 2023, 2024 and 2025;
to acute risks such as extreme weather. Relying on digital management platforms, the Company optimizes energy 2. Emissions are accounted for in accordance with the Notice on Doing Well the Work Related to the National Carbon Emission
and carbon emission management, continuously improves operational efficiency and low-carbon competitiveness, Trading Market in 2026 (HBQHH [2026] No. 32), Requirements of the Greenhouse Gas Emissions Accounting and Reporting—
and formulates targeted response plans covering operations and supply chains, thereby better seizing policy and Part 24: Electronics Manufacturing Enterprise (GB/T 32151.24-2024) and Requirements of the Greenhouse Gas Emissions
demand opportunities. Accounting and Reporting—Part 29: Mechanical Equipment Manufacturing Enterprise (GB/T 32151.29-2024).
Resource Utilization 2025 Energy Management Objectives and Achievements
Achievement
JSG integrates efficient resource utilization into operational management priorities. Through systematic monitoring Energy Management Objectives Index
of energy consumption and analysis of energy and water conservation potentials, the Company continuously
promotes energy conservation and emission reduction measures. It strives to reduce environmental impacts on the Clean Energy Utilization Rate ≥ 60% ≥ 60% ≥ 60% ≥ 60%
atmosphere, water and soil during operations, constantly improves resource utilization efficiency, and fulfills its
ecological and environmental protection responsibilities with concrete actions.
Energy Management Objectives Index Achievement
Energy Management
Comprehensive energy consumption per unit Based on 2024 as the base year, the figure shall
Achieved
product of mono crystal pullers be maintained at 0.3781 tce per unit in 2025
The Company strictly complies with the Energy Conservation Law of the People's Republic of China , the Renewable
Energy Law of the People's Republic of China , the Law of the People's Republic of China on Promoting Clean
Production and relevant local laws and regulations. It has established a sound management organizational structure Based on 2024 as the base year, the figure shall
Electricity consumption per unit product of
and formulated internal policies including the Energy and Resource Management Specification, Energy Review be maintained at 0.2139 ten thousand kWh per Achieved
mono crystal pullers
Control Procedure, Control Procedure for Energy Objectives, Targets and Management Implementation Plans, unit in 2025
and Energy Operation Control Procedure , which clarify the responsibilities, processes and assessment standards
for energy management. The Company continuously improves the ISO 50001 energy management system and
strengthens system certification to standardize corporate energy management. Energy Consumption
Energy consumed by the Company includes diesel, gasoline and purchased electricity, among which electricity
is the primary energy consumption. To continuously reduce energy consumption and improve energy efficiency, Category Unit 2023 2024 2025
the Company has set goals including energy saving to actively carry out various energy conservation initiatives. By
adopting clean production technologies, resource recycling and other measures, the Company reduces pollutant Diesel Consumption Liter 34,710 25,526 36,050
emissions and energy consumption, achieving a win-win situation between economic and environmental benefits,
building a sustainable production system, and laying a green foundation for the long-term development of the
Gasoline Consumption Liter 15,080 20,625 24,598
enterprise.
Key Honors Electricity Consumption
Category Unit 2023 2024 2025
Purchased Electricity
kWh 484,010,108 541,025,999 577,508,995
Consumption
Purchased Electricity kWh/CNY 10,000
ISO 50001 Energy Management System Certification 269.15 307.81 508.48
Consumption Intensity Revenue
Total Plant Area 10,000 m2 128.88 142.03 175.34
Purchased Electricity
MWh/10,000 m2 3,755.51 3,809.24 3,293.65
Consumption Intensity
Key Performance
Launching AGV System to Boost Energy Saving and Efficiency of Silicon Carbide Substrate
Case
Polishing Production Line
In 2025, 5 subsidiaries, including the Company's headquarters, Qiushi Semiconductor, Ningxia Xinjingsheng,
Ningxia JingHuan and Inner Mongolia JingHuan, were awarded the title of "Green Factory". This further drives the
In January 2025, to promote intelligent production and green low-carbon transformation, the Company
transformation of the production model toward energy saving, consumption reduction, pollution reduction and
successfully launched the AGV (Automated Guided Vehicle) system on its silicon carbide substrate polishing
efficiency improvement, and enhances resource utilization efficiency and the Company's core competitiveness.
production line. As an intelligent logistics hub, the system realizes fully automatic and precise material
transfer between polishing processes. By replacing manual handling, direct labor on the production line
has been reduced by 60%, optimizing human To optimize the energy structure and promote energy conservation and emission reduction, the Company has made full use of rooftops,
resource allocation. Meanwhile, through optimal carports and other spaces in various factories to build photovoltaic power generation systems and actively develop distributed clean
path scheduling and round-the-clock continuous power. At present, the Company has completed rooftop photovoltaic power stations in parks in Zhejiang, Inner Mongolia, Ningxia and
operation, the AGV system has increased other regions, continuously increasing the proportion of clean energy use and overall energy efficiency. Based on it, the Company
overall production efficiency by 30%, improved continuously explores and applies more green technologies to seize opportunities for clean transformation.
overall equipment effectiveness, and effectively
reduced energy and resource consumption per Key Performance
unit output. This is an important measure for
the Company to drive energy conservation and In 2025, the Company invested CNY 15.34 million in rooftop distributed photovoltaic projects, with a newly
consumption reduction through technological
innovation and practice green manufacturing, added installed capacity of 6,106 kWp and a total power generation of 17.9 million kWh. The cumulative
demonstrating the Company's commitment
installed area of photovoltaic systems has exceeded 174,000 square meters, enabling the conservation of
to promoting intelligent and low-carbon
development in production and operation. 5,868 tons of standard coal and a reduction of 10,412 tons of carbon dioxide emissions.
?AGV System
Case Promoting Rooftop Distributed Photovoltaic Projects to Increase Clean Energy Use
The Company actively promotes the application of clean energy and accelerates the construction of
Case Advocating Low-carbon Travel to Protect the Environment
photovoltaic projects, laying a solid foundation for building a green manufacturing system and transforming
the energy structure. Ningxia JingHuan Park has newly completed a rooftop distributed photovoltaic power
In September 2025, in response to the national call for low-carbon travel, the subsidiary Ningxia Xinjingsheng generation project. The project uses factory roof space and adopts high-efficiency photovoltaic modules and
installed electric vehicle charging stations in the factory area to encourage employees to prioritize low-carbon an intelligent monitoring system, thereby realizing a green energy supply mode of "full self-consumption".
transportation. Since the implementation of this measure, the use of electric vehicles among employees has Power generation efficiency is optimized through AI algorithms, supported by a digital operation and
increased significantly, and green travel has become a well-established practice within the Company. maintenance platform to improve management efficiency. This practice has effectively reduced electricity
costs in the park.
?Electric Vehicle Charging ?Rooftop Photovoltaic Project of Ningxia JingHuan
In addition, adhering to its original aspiration of environmental protection, the Company integrates the concept
of green operation into the whole chain of corporate development through measures such as installing fresh air
systems, waste sorting and paperless office. Meanwhile, the Company carries out environmental protection training
to advocate employees to promote green ecological development.
• I nstall fresh air • Conduct waste •R
educe printing • Stagger air • I nstall charging
systems in all sorting, implement devices, conditioning stations in the parks
areas to effectively the "three centralizing to one usage during
ventilate work reductions and device per floor summer and
?P ublic List of JingHuan Electronic Rated as Water-saving ?List of Jingrui Electronic Rated as Zhejiang Provincial Water-
areas and improve four separations" and promoting set temperature
Enterprise saving Enterprise
the working method, and double-sided controls
environment periodically carry printing
out environmental
inspections Water Use
Green, Energy-Saving and Environmental Protection Measures of the Company Category Unit 2023 2024 2025
Purchased Municipal
m3 3,028,793 3,096,422 3,471,716
Case Carrying out Energy Conservation Publicity Activities to Enhance Green Awareness of all Employees Water
Water Resource
t/CNY 10,000 Revenue 1.68 1.76 3.06
Consumption Intensity
In October 2025, Ningxia JingHuan organized a
special energy conservation publicity campaign,
calling on all employees to explore potential for
Key Performance
energy saving in production and office work. To
ensure effectiveness, the Company established
an incentive mechanism for rational energy-
In 2025, the recycled water volume of the Company reached 77,221,338 m . 3
saving proposals, providing cash rewards to
employees who put forward effective consumption
reduction measures. Through the interactive
mode of full participation, the Company not only
Case JSG Built Reclaimed Water Station, Saving over 360,000 m3 of Tap Water Annually
identified a number of practical technological
and administrative energy-saving plans, but also
significantly enhanced employees' ecological and In response to the municipal call for water conservation,
environmental awareness. ?Energy Conservation Publicity Materials easing regional water shortage and reducing corporate
water costs, the Company invested CNY 1.5 million to build
a reclaimed water station with an annual water output of
Water Resource Management 380,000 m3. After commissioning, the proportion of tap
water consumption dropped to about 13% of total water
In the face of global water resource pressures, enhancing the efficiency of water resource management has become a key use. Based on an annual total water consumption of 420,000
to address the challenge. Focusing on reducing water waste, the Company strictly complies with the Water Law of the m3, about 360,000 m3 of tap water can be saved each year,
People's Republic of China and other laws and regulations, clarifies specifications for the whole process of water resource achieving remarkable water-saving effects. This measure has
management in internal management procedures, and continuously promotes water recycling and conservation by not only effectively improved the level of water recycling,
introducing and upgrading water treatment equipment, exploring water-saving processes, improving equipment efficiency, but also made positive contributions to the sustainable
and others. Water for production, operation and daily use mainly comes from municipal tap water and treated recycled/ operation of the enterprise and regional water conservation
reclaimed water. In 2025, subsidiaries Jingrui Electronic and JingHuan Electronic were awarded the title of "Water-Saving and emission reduction. ?Reclaimed Water Station
Enterprise". It demonstrates the Company's tangible achievements in improving water resource utilization efficiency.
Management of "Three Wastes" The Company implements systematic management of waste gas generated in operations. Through technological
transformation and equipment upgrading, acidic organic waste gas and particulate matter produced in the production process
are effectively collected and treated. For vehicle exhaust in daily operations, the Company actively advocates green travel to
promote emission reduction. Through the above measures, the Company ensures all waste gas discharge meets national and
JSG continues to increase investment and management in environmental protection, committed to reducing emissions at
local environmental protection standards while earnestly fulfilling environmental protection responsibilities.
the source. Through measures such as promoting eco-friendly packaging and practicing circular economy, the Company
systematically reduces the environmental impact of operations and actively fulfills its corporate environmental responsibilities.
Pollutant Treatment
The Company strictly complies with laws and regulations on pollutant discharge and local conditions of all subsidiaries. Waste Gas Category Volume (Total Approved) Concentration
A dedicated department is established for relevant treatment, and systems including the Code of Waste Gas Management
and Code of Waste Water Management are formulated to clarify the responsibilities of all departments and positions in Nitrogen oxides ≤ 9.038t/a ≤ 300mg/m?
environmental protection. These measures systematically promote the whole-process management of pollutants such as
waste water and waste gas. Meanwhile, the Company entrusts qualified third-party institutions to conduct regular testing Sulfur dioxide ≤ 1.998t/a ≤ 200mg/m?
on waste gas, waste water and noise points to ensure all monitoring results are qualified and meet various discharge
standards, guaranteeing the compliance of environmental management. Particulate matter ≤ 1.33t/a ≤ 30mg/m?
Achievement Fluoride ≤ 0.053t/a ≤ 0.3mg/m?
Management Objective Index
Compliance rate of noise, waste water and Hydrogen Chloride ≤ 0.603t/a ≤ 3.2mg/m?
waste gas discharge
Non-Methane Hydrocarbons ≤ 1.142t/a ≤ 5.0mg/m?
The Company's wastewater primarily consists of domestic and industrial waste water. Domestic waste water originates from
office and residential areas, while industrial waste water mainly comes from the use of purified water and the preparation of
concentrated water. Through the installation of waste water reuse systems and equipment upgrading, the Company actively
Qiushi Park Completed In-depth Cleaning of Waste Gas Towers, Continuously Improving
promotes waste water collection and treatment to further reduce waste water discharge and environmental pollution. Case
Environmental Treatment Efficiency
Key Performance
To ensure the stable operation of the waste gas
treatment system and improve environmental
In 2025, the total waste water discharge of the Company was 1,069,818 m , and the total waste water
g o v e r n a n c e , Q i u s h i Pa r k e n t r u s t e d a
recycling volume was 406,323 m . 3
professional third-party institution to conduct
comprehensive cleaning and maintenance
of waste gas towers on October 8, 2025. The
Case Ningxia JingHuan Waste Water Station Effluent Reuse Project professional operation effectively improved
waste gas treatment efficiency and discharge
compliance reliability, significantly reduced
In September 2025, the effluent reuse project of Ningxia JingHuan waste
environmental risks during operation,
water station was officially put into operation. Based on two months of
and helped extend the service life of key
field investigation and water quality monitoring, the project achieved
equipment. Qiushi Park continues to prioritize
a resource reuse capacity of 20 cubic meters of effluent per hour. By
environmental responsibilities and maintains
the end of the reporting period, the cumulative reused water volume
p ro fe s s i o n a l fa c i l i t y m a i n te n a n ce a n d
reached 15,008 m3, of which 7,504 m3 was supplied to the power station,
management. It is committed to safe, green,
directly saving nearly CNY 37,000 in tap water costs. The project not only
and sustainable production and operation,
effectively reduced tap water costs but also improved water recycling
thereby making positive contributions to
efficiency, making tangible contributions to green operation and
environmental protection. ?In-depth Cleaning of Waste Gas Towers
?Effluent Reuse Project sustainable development.
Waste Management Case Conducting Emergency Response Drills for Hazardous Chemicals
The Company adheres to the principles of reduction, recycling and harmlessness in waste management, and implements
In May 2025, to prevent sudden environmental
standardized whole-process management of waste. The Company entrusts qualified professional third parties to
accidents and improve the rescue capabilities
conduct classified disposal, and systematically carries out environmental monitoring and waste data statistics to ensure
of the emergency team, the EHS Department
traceability, compliance and controllability in all links. By setting management objectives, assigning responsibilities to
organized emergency response drills for hazardous
individuals, and organizing special knowledge training, the Company actively promotes the application of recycling bins
c h e m i ca l s , w h i c h i n v o l v e d t h e h a za rd o u s
and recyclable packaging to reduce resource waste in packaging and transportation, so as to continuously improve the
chemicals user department, quality inspection
refined waste management level and support the development of circular economy.
d e pa r t m e n t a n d w a r e h o u s e m a n a ge m e n t
department. In the drills, 13 relevant participants
from the company completed on-site practical
operations. This activity verified the operability of
the emergency response procedures and improved
Achievement the disposal capacity of the emergency team.
Management Objective Index
Compliance rate of solid waste disposal 100% 100% 100% 100%
Conducting Waste Management Knowledge Training to Enhance Awareness of Environmental
Key Honors Case
Protection Responsibility
To fully implement the concept of "Zero-waste City" construction, subsidiary Ningxia To further strengthen the concept of sustainable development and environmental protection practice, subsidiary
Xinjingsheng implemented source reduction, resource utilization and harmless disposal of Ningxia Xinjingsheng carried out special environmental management training in October and November 2025.
solid waste. In February 2025, it was successfully awarded as "One of Yinchuan's 6 Zero-Waste The training was for on-site managers, with more than 10 participants in total. It systematically explained the
Enterprises", further promoting a resource-conserving and environment-friendly production generation, classification, management and resource utilization of the Company's waste and hazardous waste,
mode and a green and low-carbon lifestyle. effectively improving the environmental protection knowledge and responsibility awareness of the trainees, and
laying a solid foundation for the continuous promotion of green operation.
Case An Independent Waste Acid Treatment System Built to Achieve Dual Improvement of
Environmental Benefits and Safe Operation
To prevent and control environmental risks of hazardous
waste from the source, the Company completed a professional
evaluation and design through a third party in 2025, and built
an independent waste acid treatment process in compliance
with regulatory requirements. The process adopts alkali
neutralization to treat waste acid to the influent indicators
of the workshop, which is then integrated into the plant's
wastewater system for unified treatment and discharged up
to standard. Since the system was put into operation, a total
of 117.45 tons of waste acid has been safely disposed of in the
whole year. It not only effectively reduces environmental risks
in external transportation and disposal links, but also realizes
resource intensification and operation optimization, making
active contributions to regional environmental governance
and social sustainable development. ?Independent Waste Acid Treatment Process
?Waste Management Training Site
Circular Economy 2025 Circular Economy Objectives and Achievements
Achievement
JSG regards circular economy as an important path to sustainable and high-quality development. In line with policy Management Objective Index
guidelines including the 14th Five-Year Plan for Circular Economy Development , and following the 3R principles of
"Reduce, Reuse and Recycle", the Company has built a systematic, full-link and full-product-life-cycle circular system Total Recovery Rate of Recyclable Waste ≥ 80% 82% 81% 83%
covering design and material selection, production and manufacturing, reusable packaging, as well as warehousing
Recycling Rate of General Solid Waste ≥ 80% 86% 85% 84%
and logistics, so as to boost the green transformation of the industrial chain and improve resource efficiency.
Circular Economy Management System and Achievements of JSG Circular Economy Management System and Achievements of JSG
Standardized Unify R&D selection paths and scope through selection standards to ensure and
Packaging
Recycle sleepers, wooden cases, rainproof cloth and other packaging; use eco-
Design and control that materials selected in design have optimal performance, quality and
Material
Selection economy friendly, reusable and pollution-free materials for all incoming packaging
Recycling
Innovative Initiate the "Electrical component selection library (cables + components)"
Conversion of Idle
Materials
mechanism; incorporate sluggish materials into the standard system and integrate
resources to realize material form conversion and natural consumption
Supply Chain
Adopt standardized recyclable turnover boxes and pallets to form a lean logistics
model of "milkrun" and "direct-to-workstation delivery"
Design and Make the selection library meet both R&D standardization and centralized procurement
R&D Collaborative standardization needs, reduce the types of the types of materials by 82%, and achieve
Material
Innovation consistent material usage across the Group and centralized supply chain management
Selection Full-process Apply intelligent packaging embedded with RFID, QR codes or IoT sensors to
Digital and Visual realize refined management of packaging assets, in-transit goods and supply chain
Management processes
Recyclable
Packaging
Record data in real time through MES/QMS systems; improve the timeliness of early
Traceability
warning mechanisms and response speed to abnormal data to handle problems
System Support
promptly and locate information accurately Based on estimation and research, use recyclable packaging on a large scale to
Environmental
reduce greenhouse gas emissions and water consumption by 35%-70%, and cut
and Social Value
down disposable packaging waste and raw material consumption
Suitable for high-mix, low-volume production, ensuring standardization of
Unitized
assembly actions, standardization of quality control, and traceability of assembly
Production Mode
and quality
Efficiency and
Response Speed
Connect processes closely to realize "one-piece flow" production and shorten
delivery cycles by more than 70% 04 dopt the "Milkrun" model; determine pickup routes based on supplier zones and
A
delivery frequency, set milkrun frequency and time according to pull demand,
integrate fragmented transportation from multiple suppliers, improve vehicle
loading rate, and reduce empty mileage and total trips
reatly improve vehicle loading rates and handling efficiency, significantly
G
reducing freight costs and enhancing internal loading/unloading efficiency
Production Milkrun Model
Inventory and Accelerate material turnover to directly reduce WIP (work in process) inventory by
and educe the logistics management burden of individual suppliers and achieve
R
Capital 80%-90%
Manufacturing scale and synergy effects across the supply chain
Warehousing se recyclable green packaging for loading to complete full-vehicle loading
U
and Logistics and unloading within an estimated 15 minutes, improve handling efficiency by
Quality and
Empower teams with higher autonomy and responsibility for product quality to over 50%, increase vehicle loading rate by over 30%, and reduce solid waste
Continuous
significantly reduce defect rates and waste from non-conforming products output by 83%
Improvement
Driving Development through
Innovation and Sustainability
JSG takes technological R&D and quality leadership as its core strategies,
and continuously promotes the high-quality development of the
photovoltaic and semiconductor industries through technological
innovation and refined management. The Company constantly improves
product quality and reliability, perfects the customer service system,
collaborates with upstream and downstream industrial chains to enhance
development capabilities, and actively contributes to the long-term
sustainable development of the industry.
Green Industry Synergy
R&D and Innovation
Product Quality and Safety
Customer Service
Sustainable Supply Chain
Green Industry Synergy Key Performance
During the reporting period, revenue from the Company's clean technology-related business accounted for
JSG leverages its dual-engine development strategy of "advanced materials + advanced equipment" to proactively
capture opportunities in clean technology, deepen the coordinated deployment of its "equipment + materials" layout, over 50% of total revenue.
increase R&D investment to strengthen independent and controllable capabilities across the entire industry chain,
and promote digital and intelligent interconnectivity among equipment. Supported by an integrated intelligent factory
solution of "automation + digitalization + AI-driven big data", the Company adheres to a clean-energy-driven, low-carbon PV Equipment: Leading in Both Technology and Scale
model and is committed to building a green and environmentally sustainable industrial ecosystem.
JSG's core business lies upstream in the green energy industry chain. Leveraging its capability to supply core PV
Since upgrading clean technology opportunities to its core ESG development strategy in 2024, the Company has continuously equipment across the entire industry chain - from silicon wafers and cells to modules - and its synergistic advantages
increased R&D investment in the strategic direction of "green, intelligent, low-carbon, and manufacturing" clean technology in automation and consumables, the Company continues to drive industry cost reduction, efficiency enhancement,
opportunities, and collaborated with partners to accelerate the transition to clean energy and low-carbon, green development. and technological upgrades through innovative products. JSG leads and deepens collaborations across the upstream
and downstream industrial chains, promoting the co-construction of a green industrial ecosystem.
Investment Targets for Clean Technology Opportunities
Monocrystalline
Poly-silicon Silicon Wafer Cell Module
Silicon Ingot
Goals Goal Progress
R&D investment in clean technology is no less than CNY 80 million in
The 2025 goal has been achieved.
In 2025, the Company's new annual investment in photovoltaic
projects amounted to no less than CNY 15 million. By the end of 2027, The 2025 goal has been achieved, with a new
the cumulative new investment in photovoltaic projects is expected photovoltaic investment of CNY 15.34 million and
to reach no less than CNY 40 million, with the annual newly installed a newly expanded capacity of 6,106 kWp.
rooftop photovoltaic capacity increasing by no less than 4,000 kWp.
Strategic Direction for Clean Technology Opportunity Mono Crystal
Cropper Squarer Grinder Slicer
Pre&Sep&Final Cleaning Silicon Wafer Sorting and
Puller Integrated Machine Boxing Equipment
Strategic Direction Actions
Increase investment in green product R&D, and focus on the development of "advanced materials
and advanced equipment" in green energy fields such as PV power generation and LED lighting
Green
Adhere to sustainable development as the focus of the Company's development
Build a green manufacturing system to contribute to the national new energy green industry
PECVD(POLY) Diffusion (Anneal) ALD
rovide intelligent factory solutions for the semiconductor industry, PV industry and compound
P
substrate industry to meet customers' digital and intelligent production mode needs
Intelligence Build an industrial digital brain, and create an intelligent manufacturing mode to achieve lean,
intelligent manufacturing and management with highly intelligent advanced manufacturing and
efficient organizational management
Module Equipment
Dry Cleaning EPD
cientifically eliminate and replace old equipment and upgrade processes to reduce energy
S
consumption and emissions during the operation process
Give priority to clean energy sources such as photovoltaic power generation, promote the
Low-carbon
transformation of the energy structure, and gradually get rid of the dependence on fossil energy Silicon Wafer Segment: Technological Leadership Driving Industry Transformation
Plan the optimal path, use recyclable packaging materials and utensils, and work together with
suppliers to achieve low-carbon and energy-saving goals As a global leader in the supply of full-automatic monocrystalline silicon growth furnaces, JSG offers products such
as full-automatic crystal growth equipment, crystal processing equipment, wafer processing equipment, and wafer
uild a globally leading green intelligent high-tech manufacturing enterprise integrating intelligent
B sorting and testing equipment. These products enhance efficiency and yield through highly integrated automation,
Manufacturing equipment and new materials for semiconductors, photovoltaics, etc., and provide an ecological
establishing a comprehensive core equipment system for the entire silicon wafer manufacturing process and
environment for low-carbon, energy-saving and sustainable development
continuously leading technological iterations in the industry.
Introduction to Silicon Wafer Products and Equipment Provider of Comprehensive Green and Intelligent Factory Solutions
Wafer Processing and JSG leverages cloud computing and big data applications to achieve automation and intelligence across its equipment
Crystal Growth Crystal Processing
Inspection chain. By focusing on integrating the industrial digital brain of future factories with intelligent manufacturing bases,
JSG offers clients comprehensive intelligent factory solutions based on differentiated competitive strategies. JSG also
Full-automatic mono crystal Ring wire cropper, circular Pre&Sep&Final cleaning continues to lead industry innovation by introducing highly intelligent products such as the ring cutter, Pre&Sep&Final
puller diamond wire squarer, rounding integrated machine, cleaning integrated machine, and silicon wafer sorting and boxing equipment. These innovations, through highly
and grinding integrated machine, wafer sorting and testing integrated automation, enhance efficiency and yield, reduce costs, and support clients' green, efficient, intelligent, and
diamond wire saw, etc. equipment, etc. sustainable development. This, in turn, drives the global PV manufacturing industry's shift towards intelligence and
sustainability, contributing to the realization of "carbon peaking and carbon neutrality" goals.
Key R&D Achievements JSG's Intelligent Solution
Fully-automatic single crystal silicon growth furnace: Recognized by the Ministry of Industry and Information
Automated and Informational Factory Digital Factory Intelligent Factory
Technology as a Third Batch of Manufacturing Single Champion Product;
Fully-automatic mono-crystal puller series products: Recognized as a National Key New Product by Four Equipment Interconnectivity Achieves Data Visualization and Process Automated Behavior and Decision Making
Ministries and Commissions. Data Uploading Transparency Based on Predictive Capabilities
Fully-automatic PV mono crystal puller: Internationally leading in both technology and scale.
Cell Segment: Differentiated Innovation Driving Efficiency Breakthroughs
The Company has focused on advancing high-efficiency battery technologies and successfully developed a series of core
equipment, including PECVD (Plasma-Enhanced Chemical Vapor Deposition), diffusion furnaces, annealing systems, single-
chamber multi-boat ALD (Atomic Layer Deposition) equipment, and edge passivation devices (EPD) for cell cutting. The
Company has achieved differentiated competitive edge in performance through innovative design and process optimization.
Description Diagnosis Forecast
Module Segment
From the module perspective, the Company has developed a production line for module equipment that includes multiple
processes such as layout machines, automatic frame loading machines, and glue dispensing testers. Its innovative de-silvering Strategic Partnership with Siemens to Jointly Promote Green and Low-carbon Transformation
Case
module equipment significantly reduces silver consumption in the module production process, greatly lowering production costs. in the Industry
Consumables Segment: Leading in Both Technology and Scale
In March 2025, JSG officially signed a strategic
cooperation agreement with Siemens (China) Co.,
The continuous development of the PV industry has rapidly increased the demand for consumables. JSG's quartz
Ltd. The two parties are expected to engage in in-
crucible products have achieved outstanding results, leading in both technology and scale. JSG has innovatively
depth cooperation around four core directions:
developed high-quality quartz crucibles by optimizing crucible dimensions, purity, and crystal pulling time to reduce
"automation, digitalization, green and low-carbon, and
consumable costs in silicon wafer production. JSG also leads tungsten diamond wire technology, breaking through
sustainable development", jointly exploring innovative
carbon steel wire diameter limits to meet the cutting needs of large-size and thin silicon wafers.
solutions such as intelligent factory construction,
digital technology applications, and energy efficiency
optimization. This cooperation aims to fully leverage
each party's technological and resource advantages
i n a u to m at i o n , d i g i ta l i zat i o n , a n d s u sta i n a b l e
development, jointly promoting industrial intelligent
upgrading and green and low-carbon transformation,
and injecting new momentum into the semiconductor
?Agreement Signing Ceremony and high-end manufacturing industries.
Quartz crucibles and quartz products Carbon steel and tungsten diamond wire
R&D and Innovation Key Honors
JSG places R&D innovation at the core of its high-quality development, synergizing technological breakthroughs
with in-depth understanding into customer needs, continuously increases R&D investment, strengthens innovation In 2025, JSG obtained ISO 56005 Appraisal Certificate
capabilities and technological accumulation, and enhances core competitiveness to deliver sustained value creation for Innovation & Intellectual Property Management
for customers. Capability (Level 3). As the first international
standard on intellectual property management
Governance led by China, this certificate signifies that the
Company has reached an internationally advanced
level in innovation strategy planning, full life-cycle
JSG has established a comprehensive R&D system covering three major directions: strategic R&D, product and
intellectual property management, and commercial
technology R&D, and process and technical support. Closely aligned with national industrial policies and frontier
value transformation.
trends in the PV and semiconductor industries, the Company systematically analyzes customer needs, market ISO 56005 Appraisal Certificate for Innovation &
dynamics, and the competitive landscape to define R&D objectives and implementation pathways. By building Intellectual Property Management Capability (Level 3)
platforms for core technology development and product industrialization, the Company continuously delivers
innovative outcomes that meet market demand and lead technological advancement, consolidating its industry-
leading position and supporting industrial upgrading and high-quality development.
JSG continually optimizes its R&D organizational structure, operating national-level postdoctoral research stations,
Strategy
national enterprise technology centers, Zhejiang provincial key laboratories, and other research platforms, to
enhance the construction of its research platform system.
Innovation-Driven Risk Identification List
Scientific Research Platform Construction System
Possibility
Risk Risk Potential Impact on Key Response
Risk Description of Risk
Category Timeframe Company Finance Measures
Occurrence
Research Institutes Laboratories Departments Department Center When tackling cutting- Strengthen full-process
Significant upfront R&D
edge semiconductor R&D management,
investment may fail to
and PV technologies, the establish core
Technology translate into expected
In 2025, the Company restructured its R&D center into ten equipment research institutes, three Company may face technical technology and product
R&D and Mass Medium Medium-to- returns, dragging down
advanced laboratories, four professional R&D departments, one technology application department, challenges in scaling up from industrialization
Production Term High overall profitability and
and one Japan R&D center. laboratory breakthroughs platforms, and
Risks affecting the Company's
to mass production, such as progressively enhance
ability to capture market
unsatisfactory R&D progress process maturity through
share
or unstable processes pilot-line validation
In 2025, the Company established a new electrical laboratory and incorporated SuperSiC's R&D
Department into the management system of the Company's R&D center. Closely track industrial
Rapid technological iteration
policies and market
and intense industry Pricing pressure and
demand to align R&D
competition may cause the declining gross margins;
Market direction with market
In 2025, the Company obtained approval for Ningxia JingHuan Autonomous Region-level Enterprise Company's newly developed failure to keep pace with
Competition trends; leverage the
Technology Center and Hangzhou Jingsheng Photonics Cell Technology High-tech Research and technologies or products Ongoing High new product demand
and Return integrated advantages of
Development Center. to lag in commercialization may result in order losses
Risks "equipment + materials"
if they fail to meet market and stagnant revenue
to control costs and
demand in a timely manner growth
actively expand diversified
or involve excessive costs
In 2025, a new subsidiary, Inner Mongolia JingHuan Electronic Materials Co., Ltd., was recognized as a application scenarios
national-level "Little Giant" enterprise. Another new subsidiary, Jingsheng Chuangxin, was recognized
as a National High-tech Enterprise.
Note: "Short term" refers to within 1 year, "medium term" refers to 1-5 years, and "long-term" refers to 5 years or more.
Large-scale R&D investment Heavy capital expenditure Optimize capital allocation Communication and
Risk Identification Risk Assessment Risk Management
and global capacity may affect short-term to ensure the sustainability Survey
expansion require sustained cash flow and profitability; of R&D investment; expand
Financial
and substantial capital slower-than-expected diversified financing
Resource and Medium-to- Regularly and For identified risks, Establish a dynamic Based on evaluation
expenditure. Fluctuations in Medium downstream demand channels and strengthen
Investment Long Term systematically identify use a combination monitoring system and monitoring
market demand or product growth could prolong the inventory and accounts
Risks potential risks in of quantitative and to track key indices results, optimize
prices may create cash investment recovery cycle receivable management
technology, market, qualitative methods through information R&D management
flow pressure or extend the and increase financial to improve operating cash
regulations, and other to scientifically assess tools, promptly identify processes and
investment payback period burden flow
aspects throughout their likelihood of risk signals, and flexibly resource allocation,
the entire R&D occurrence and adjust R&D strategies. formulate and
Innovation-Driven Opportunity Identification List process. potential impact, and implement targeted
provide a basis for response strategies to
decision-making. achieve full-process
Opportunity Opportunity Potential Impact on Response management of risks
Opportunity Description Likelihood
Area Timeframe Company Finance Measures and opportunities.
Market demand for third- Increase R&D
Breakthroughs generation compound Create new revenue investment, Company R&D Risk Management Process
in third- semiconductor materials growth drivers, accelerate
generation is growing rapidly, and Medium and enhance technology
High
semiconductor the Company has made Term product value- industrialization, Intellectual Property Management
material significant progress in added and market and improve
technologies substrate material R&D competitiveness industry chain
and capacity deployment deployment To mitigate R&D and intellectual property risks, the Company has established an institutional framework centered on the
Measures for Intellectual Property Management and the Patent Management Procedure , systematically standardizing full
Urgent demand life-cycle intellectual property management and safeguarding innovation outcomes through institutional mechanisms.
for autonomy and Deepen customer Additionally, the Company has introduced an application incentive mechanism through the Measures for the Management
High-end
controllability across the collaboration, of Patent Award Selection . Upholding principles of objectivity and fairness, the Company recognizes innovative
semiconductor Increase domestic
semiconductor industrial Short-to- continuously
equipment market share, achievements across four dimensions—technological advancement, market competitiveness, patent quality, and
chain presents market Long Term High optimize product
import and strengthen patent protection—thereby effectively stimulating the initiative and creativity of R&D personnel, continuously fostering a
opportunities for the (Ongoing) performance, and
substitution profitability corporate culture that values innovation, and providing intrinsic momentum for high-quality development.
Company's accumulated improve service
opportunity
technologies in systems
semiconductor equipment
Rising requirements for Promote mature
energy conservation Reduce operating technical Patent Patent Patent Patent Early Patent
Green Layout Retrieval Application Warning Activities
and emissions reduction costs, improve solutions,
manufacturing Short-to-
create broad application Medium-to- energy efficiency, strengthen
technology Long Term
prospects for the high and gain sustainable intelligent
application and (Ongoing)
Company's technological development management, and
promotion
innovation in green advantages optimize resource IP Protection Management Process
manufacturing allocation
Note: "Short term" refers to within 1 year, "medium term" refers to 1-5 years, and "long-term" refers to 5 years or more.
University-Industry Cooperation
Impact, Risk, and Opportunity Management JSG regards talent cultivation as a key driver of industry advancement and actively builds collaborative education
mechanisms between enterprises and academic institutions. Leveraging platforms such as the postdoctoral research
JSG deeply integrates ESG philosophies into its R&D innovation system, establishing a full-process closed-loop risk station, the Company deeply integrates academic resources from universities with industrial practice, jointly
management mechanism covering "identification-assessment-monitoring-management" to systematically control advancing talent development and technological breakthroughs. This model not only supports the Company's
uncertainties in R&D activities, ensure the robustness and sustainability of technological innovation, and consolidate technological upgrading and optimization of its talent echelon, but also continuously delivers highly qualified
the Company's market competitive advantages. professionals to the industry, empowering the high-quality development of the entire industrial chain.
JSG's University-Industry Cooperation Projects as of the Reporting Period
Level Standard Name Standard No
Cooperative Academy Cooperative Project National Fine Ceramics—Determination of Compaction Properties of Powders GB/T 46588-2025
Established "Innovation Research Center of Mechanical and Electrical Fine Ceramics—Measurement of Viscosity of Ceramic Slurry—Rotational
National GB/T 46586-2025
Equipment" Viscometer Method
Test Method for Fracture Toughness of Fine Ceramics at Room
National GB/T 23806-2025
College of Mechanical Engineering, Carried out the "Joint Training Program of Full-time Professional Degree Temperature—Single Edge Precracked Beam (SEPB) Method
Zhejiang University Master's Degree"
Industrial Dressing Wheel for Wafers Precision Grinding Disc SJ/T 11980-2025
Completed the scientific research project of "Development of 12-inch
Industrial Method for Determination of Particle Size of Quartz Sand JC/T 2909-2025
Czochralski Hard-axis Mono Crystal Silicon Growth Puller"
Institute of Crystal Materials,
Jointly built a "Crystal Material Equipment Research Center" Ethics of Science and Technology
Shandong University
JSG strictly adheres to principles of scientific and technological ethics in its R&D and business operations, upholding
Signed a strategic cooperation framework agreement to jointly establish
College of Integrated Circuits, independent innovation and intellectual property as foundational pillars. It explicitly refrains from developing or
the "Advanced Integrated Circuit Equipment and Process Joint R&D Center"
Zhejiang University; Zhejiang ICsprout applying technologies that may pose threats to the natural environment, human health, public safety, or social
and the "Integrated Circuit Talent Training and Technological Innovation
Semiconductor Co., Ltd. ethics, and is committed to advancing social progress through responsible technological innovation. Looking ahead,
University-Industry Collaboration Center"
the Company will continue to strengthen governance on scientific and technological ethics, ensuring that every
technological breakthrough aligns with ethical standards and contributes positive value to the healthy development
of industry and society.
Standard Setting
Building on its technological accumulation and industrial practice in the PV and semiconductor sectors, JSG actively Indicators and Targets
participates in the formulation of national, industry, and group standards, as well as in related research initiatives.
Through close collaboration with government authorities, industry associations, and research institutions, the JSG sets annual quantitative management indices for performance in scientific and technological innovation and
Company plays a demonstrative role in the industry, promotes the standardization of manufacturing processes and R&D, and monitors progress toward these goals through regular evaluations and dynamic analysis.
overall technological advancement across the industrial chain, leads the regulated development of the industry
through substantive participation, and contributes to the improvement of the industrial innovation ecosystem. As of
December 31, 2025, the Company has newly led or participated in the formulation of 9 national, industry, and group During the reporting period, the Company's innovation and R&D goals and their achievement
standards, bringing the cumulative total to 32. status are shown in the following table:
Goals Achievement
New Standards of JSG in 2025
R&D investment accounting for more than 6% of
Achieved
operating revenue
Level Standard Name Standard No New Patents Exceeding 200 Achieved
National Test Method for Micropipe Density of Monocrystalline Silicon Carbide GB/T 30868-2025
The Company's innovation and R&D-related indices over the past three years are shown in the
following table:
National Test Method for Measuring Diameter of Semiconductor Wafer GB/T 14140-2025
Test Method for Thickness and Flatness of Monocrystalline Silicon Index Unit 2023 2024 2025
National GB/T 32278-2025
Carbide Wafers
R&D Investment CNY 10,000 114,540 111,919 95,498
Fine Ceramics Interface—Test Method for Tensile and Shear Fatigue
National Properties at Room Temperature Under Constant Amplitude—Crossed GB/T 46584-2025 Proportion of R&D Investment to
% 6.37 6.37 8.41
Method Operating Revenue
Index Unit 2023 2024 2025 Launching A Fully Self-Developed, Cost-Efficient OHT (Overhead Hoist Transport)
Case
System, Facilitating the Intelligent Upgrade of Industrial Logistics
Number of R&D Personnel Person 1,678 1,588 1,468
Proportion of R&D Personnel % 22.39 25.99 25.55 In May 2025, the subsidiary ZVISION Photoelectric launched a fully self-developed, cost-efficient OHT
system, providing flexible and efficient aerial logistics solutions for industries such as semiconductors and
Total Number of Valid Patents Item 914 1,069 1,274 panels. The system features high load capacity, modular design, rapid assembly, and flexible scalability,
ensuring hardware and software autonomy and controllability. Its overall cost is only 25% of that of high-
Including: Invention Patents Item 172 256 364
end magnetic levitation systems. The Company has upgraded its silicon carbide production lines with this
Annual Newly Granted Patents Item 345 323 237 system, demonstrating a key practice of reducing the cost of industrial upgrading through independent
innovation and promoting the broader adoption of high-end manufacturing.
Including: Newly Granted Invention
Item 92 105 107
Patents
Distributed Patent Bonuses CNY 10,000 137 204 192
Outstanding Scientific Research Achievements
As a leading domestic high-tech enterprise in "advanced materials and advanced equipment", JSG adheres
to technology-driven sustainable development. Leveraging its profound technical expertise in the PV and
semiconductor fields, the Company continuously invests in R&D resources to tackle key technical challenges, drive
industry progress, and provide solid support for the Company's high-quality development and industrial upgrading.
Achieving Breakthrough in 12-inch Silicon Carbide Crystal Growth Technology, Supporting
Case
Greater Autonomy and Controllability Across the Industrial Chain
In May 2025, the subsidiary Jingrui Electronic realized a technological breakthrough in the growth
of 12-inch conductive silicon carbide (SiC) monocrystalline, with the successful production of the
first 12-inch SiC crystal. The crystal reached a diameter of 309mm and exhibited sound quality,
marking JSG's achievement of autonomous and controllable full-size crystal growth technology
ranging from 6 to 12 inches in the SiC field, and providing strong technical support for the
independent development of China's SiC industrial chain.
?First 12-inch SiC crystal ?Self-developed, cost-efficient OHT system
Launching A Full-Process Solution for Square Silicon Wafers, Leading the Transformation
Case
of Advanced Packaging Technology
Quality Strategy Quality Policy
In November 2025, the Company officially launched a full-process solution for square silicon wafers, The Company safeguards the dual Guided by quality costs
providing a complete suite of independently developed equipment covering crystal growth, cropping, drivers of demand and innovation and centered on customer
squaring, grinding, slicing, polishing, and cleaning. Through full-chain technological autonomy and through the reputation of its satisfaction, JSG strives for
controllability, the solution represents products and services, using quality excellence with zero-defect
a shift from single-point breakthroughs as the foundation to establish an management, aiming to build
to system-level innovation. It offers internationally leading position in a reputable product line and
a " C h i n e s e s o l u t i o n " to a d d r e s s the autonomous semiconductor achieve outstanding commercial
the limitations of traditional round equipment chain. reputation.
wafers in terms of area utilization
and packaging efficiency for large-
size, high-integration AI chips,
thereby boosting advanced packaging Key Honors
capacity and industrial technology
iteration. This initiative demonstrates
JSG's commitment to advancing the
semiconductor industrial chain toward
higher-level development through
independent innovation.
?JSG Launches its Full-Process Solution for Square Silicon Wafers
JSG has obtained the ISO 9001 Quality
Management System Certification
Product Quality and Safety
JSG consistently upholds a "quality first" management philosophy and has established a comprehensive quality
management system. By integrating intelligent and digitalized methods to collect full-process data and relying on
systematic risk control mechanisms, the Company promotes lean operation of quality management and strives to
achieve zero defects in products and service processes.
Governance
Strategy
JSG has formulated systems including the Planning and Control Procedure for Product and Service Realization,
Quality Objective Management Procedure , and Product Protection and Control Procedure , thereby establishing and JSG systematically identifies potential impacts, risks, and opportunities that may arise throughout the full life
continuously optimizing the comprehensive quality management framework. International quality management cycle of its products, taking into account its product characteristics and business scale, and incorporates relevant
standards have been incorporated into the existing product quality management. In terms of management structure, requirements into both quality management and operational management processes for unified implementation.
the Company designates the Board of Directors as the highest authority responsible for quality management, with Through the continuous improvement of quality control mechanisms and process management, the Company
the Quality Department serving as the dedicated functional unit, forming a standardized and efficient hierarchical reduces uncertainties related to product quality and safety, while actively capturing market recognition and
management system. In addition, supported by industry-leading testing equipment and a professional talent team, customer collaboration opportunities brought by high-quality products, thereby ensuring that product quality and
the Company provides solid technical support for product safety evaluation and quality optimization. safety standards remain aligned with the Company's business development.
Product Quality and Safety Risk Identification List A well-established
Advance quality
quality and safety Expand high-quality
system development
High-end management system customer resources
Medium-to- and enhance
Possibility Customer Access helps meet the access Medium and increase product
Risk Potential Impact on Long Term customer audit and
Risk Type Risk Description of Risk Response Measures Opportunity requirements of leading penetration in high-
Timeframe Company Finance product validation
Occurrence customers and high- end markets
capabilities
end projects
Upstream semiconductor Increased costs for
products involve complex rework, repair, or Improve the quality
Standardize
technologies and replacement may management Stable and reliable
quality and safety
require high precision Short-to- disrupt delivery system and Brand and product quality and Enhance brand
Product management as well
and stability. Quality Medium Medium schedules and strengthen quality Reputation safety performance Medium-to- premium capability
Quality Risk Medium as related disclosures
deviations in design, Term customer satisfaction, control and process Enhancement contribute to a strong Long Term and long-term
to continuously
manufacturing, or testing adversely affecting inspection for Opportunity market reputation and market value
improve external
may affect product periodic operating critical procedures brand image
recognition
performance or reliability results
As product models Continuously
increase and delivery Rising defect optimize production Note: "Short term" refers to within 1 year, "medium term" refers to 1-5 years, and "long-term" refers to 5 years or more.
scale expands, rates, increased processes and
Quality Short-to-
misalignment between manufacturing and quality standards,
Consistency Medium Medium
Impact, Risk, and Opportunity Management
quality control and quality management strengthen process
Risk Term
capacity expansion costs, and reduced management, and
may challenge product operational efficiency drive continuous
consistency and stability improvement
To strengthen the proactive management of product quality risks and opportunities, the Company applies the PDCA
The semiconductor management principle to structure a quality value framework, enabling full life-cycle management of product processes. In
Continuously
industry continues to addition, through initiatives including target decomposition, process management, and personnel development, the Company
Additional rectification monitor changes in
Compliance raise requirements for conducts quality planning, monitoring, and improvement across business execution through quality management practices,
and certification costs industry standards
and product quality, safety, Medium-to- thereby promoting continuous enhancement in market share, customer satisfaction, and management optimization.
Medium may restrict access and advance
Standard and related standards. Long Term
to certain markets or product quality
Risks Insufficient response
customer systems and safety-related
may create compliance Product Lifecycle Quality Management
certifications
pressure
Pre-sale Pre-production In-production Post-production After-sales
Note: "Short term" refers to within 1 year, "medium term" refers to 1-5 years, and "long-term" refers to 5 years or more.
Compliance Information Collection
Risk Management Pre-management Data Management
Monitoring Application
Product Quality and Safety Opportunity Identification List
Market & Customer Demand Research
Log of Problems Customer
(LOP) Process Standard Internal Audit Data Analysis
Requirement
Optimization (VDA6.3/6.5) (Plato, Trend Chart)
Collection
Opportunity Opportunity Opportunity Potential Impact on Design Failure Mode
Likelihood Response Measures and Effects Analysis
Type Description Timeframe Company Finance (DFMEA)
SQC Pre-management
Principle of "Three
Management Equipment
Inspections" and
and Control Improvement Benchmarking
Production Part "Three Don'ts"
Customers in the Approval Process
semiconductor (PPAP)
Continuously
industry continue to Improve customer Supplier/Customer Backend Data Management Technical Iterative
High-quality enhance product Process Failure Mode
raise requirements recognition and and Effects Analysis Associated Production Monitoring Standardization Optimization
Product Medium-to- Medium- quality control and (PFMEA)
for product reliability order stability,
Competitiveness Long Term to-High strengthen quality
and stability, and support sustained
Opportunity management
high-quality products revenue growth Quality Planning and Internal Audit Product Monitoring and Data Analysis and Information Collection
capabilities Control Procedure Management Procedure Measurement Control Procedure Evaluation Process and Application
help enhance market Risk and Opportunity Associated Production Quality Problem Handling Quality Cost Management Management Procedure
competitiveness Control Procedure Management Specification Process Process
…… …… …… ……
Quality Management Training
Customer Service
Focusing on Quality Improvement to Drive Process Optimization——Conducting Quality
Case
Enhancement Series Training
JSG consistently places customer experience at the core of its operations and regards customer satisfaction as a key
index for evaluating service effectiveness. To this end, the Company has established a comprehensive institutional
From March to April 2025, the Company organized a series of specialized training programs centered on framework, including the Customer Complaint Management Process, Customer Satisfaction Management Process,
"quality management and continuous improvement". The training covered multiple dimensions, including Customer Training Management Process , and Problem Solving and Customer Care Procedure , covering all aspects of
process optimization, lean methodologies, risk customer service. Through systematic optimization of service processes, the Company has not only improved service
control, and the application of quality management quality but also strengthened customer trust and loyalty, laying a solid foundation for sustainable development.
tools, aiming to systematically enhance the team's
professional competence and practical capabilities. Customer Communication and Feedback
The Company will continue to remain quality-oriented
and process-driven, empowering teams through In managing customer feedback, the Company adheres to principles of proactiveness, precision, and efficiency.
normalized training and capability development, Through quarterly satisfaction planning and monthly surveys targeting project customers and material sales
and driving comprehensive improvement in business customers, the Company is able to promptly obtain customer opinions and suggestions. Regular customer
optimization and quality management levels. satisfaction weekly meetings enable department heads to conduct in-depth analysis of issues, track processes, and
?Quality Enhancement Series Training implement corrective measures, forming a closed-loop management mechanism of early detection, early feedback,
and early resolution, thereby ensuring that every customer need is addressed efficiently.
Indicators and Targets 1 Question Presentation 2 Information Transfer 3 Cause Analysis
In terms of index and goal management, the Company has established a quality management mechanism centered on hen receiving complaint letters
W A of the Quality Department
Q nalyze the causes of quality
A
results orientation and continuous improvement. At the beginning of each year, the Company defines annual product from customers or discovering sends the received questions to problems by means of various
quality management objectives, focusing on key indices such as the quality cost rate and the rolling occurrence rate of safety and major quality incidents, the relevant departmental staff quality tools and develop urgent
equipment-related issues. Through regular monitoring and evaluation of target achievement, relevant data are used as it is required to report them to the at the same time measures
an important basis for assessing the effectiveness of quality management and for continuously optimizing production Quality Management Department
by e-mail or telephone within 2 A of the Quality Department
Q et up a team to analyze and
S
organization and quality control processes, thereby steadily enhancing product quality control capabilities.
hours communicates with the relevant improve important problems/
sales person or after-sales service quality accidents according to
Product Quality Management Goals uality and safety incidents are
Q leader to confirm whether the 8D method
also reported to the Group Quality customer needs a response letter
Committee to deal with the problem
Key Indices Goals Achievement
Quality Cost Rate ＜ 2.00% 1.95%
Rolling occurrence rate of semiconductor mono-crystal
＜ 2.80% 2.36%
puller equipment issues
Rolling occurrence rate of other semiconductor
＜ 6.00% 4.93%
equipment issues ustomer complaints
C ases of validated
C alidate post-
V evelop permanent
D
are integrated into measures are implementation measures using
Product Quality Management Indices the BPM system for expanded horizontally effects using tests, response tables such
management and documented variance analysis, as the PDCA method,
pareto diagrams, network diagrams, etc.
Key Indices Unit 2025 histograms, etc.
Number of Major Product Safety and Quality
Times 0
Responsibility Accidents
Number of Product Quality Training Times 30
Cumulative Duration of Product Quality Training Hour 40
Product or Service Complaint Management Process
Key Performance Customer Training
In 2025, the Company recorded a customer satisfaction rate of 94.5%, received 2 customer complaints, At the same time, the Company places great emphasis on customer capability development and has established
a scientific and standardized training system. The training process covers customer needs identification, training
and achieved a complaint follow-up and resolution rate of 100%. plan formulation, implementation and execution, as well as continuous optimization, providing customers with
comprehensive support including equipment technical briefings, operational guidance, and troubleshooting of
common faults. Through high-quality training services, customers can fully master product technologies, and
Case Efficient Delivery of the Turkey SmartSolar Wafer Project, Winning High Customer Recognition enhance utilization efficiency and satisfaction, maximizing value for both parties.
PDCA Customer Training Process
From April to July 2025, the Company implemented the Smart Solar wafer project in Turkey, with the
Sales Center and relevant teams advancing the project throughout the entire process. They completed
equipment delivery, installation, commissioning, and production ramp-up in just 90 days, with both Plan (P) Do (D)
capacity and performance exceeding contract and customer expectations, earning formal recognition
from the client for outstanding performance. The success not only supported SmartSolar in establishing
an integrated industry model spanning wafers to power stations, but also further demonstrated oordinate customer training content based
C onduct customer training according to the plan;
C
the Company's delivery capability and product competitiveness in overseas markets, enhancing its on needs; Timely adjust and resolve issues encountered
international brand influence, laying a solid foundation for future global expansion. Identify essential training needs based on during the training process;
equipment installation progress; Responsible for feedback and reporting on
Prepare the customer training plan. problem resolution progress.
Action (A) Check (C)
rganize the summary and review of training
O I s s u e d t ra i n i n g q u e st i o n n a i re s to o bta i n
evaluations; customers' evaluations of the training, including
Develop and implement improvement plans; evaluations of trainers' competence, course
Share accumulated knowledge and content, and training effectiveness.
experience.
?Smart Solar Silicon Wafer Project and Medal
Sustainable Supply Chain Meanwhile, the Company emphasizes the cultivation of sustainable capabilities among procurement staff. Through
specialized ESG training programs, JSG systematically explains the necessity and development pathways of
sustainable supply chain management, enabling the team to integrate environmental, social, and governance factors
into the entire process of supplier selection, evaluation, and contract management. This approach helps mitigate
JSG attaches great importance to the critical role of the supply chain in supporting core business development and achieving risks at the source, enhances supply chain resilience, and lays the foundation for reducing carbon emissions in the
long-term value creation, and regards supply chain management as an integral component of its sustainable development supply chain while preventing environmental emergencies. By strengthening personnel capabilities, the Company
system. From both governance and strategic perspectives, the Company systematically advances supply chain-related continues to enhance the effectiveness of its procurement management and improve the overall compliance and
management initiatives, focusing on the impact of supply chain activities on operational stability, compliance management, market competitiveness of its supply chain.
and long-term development. Continuous enhancement of the standardization, coordination, and resilience of the supply chain
provides strong support for the Company's steady operations and high-quality development.
Flexible Supply Chain Procurement Strategy
Governance
Supply Source
Concentrated
Management
Concentrated Concentrated
JSG insists on "focusing on the deployment of the innovation chain along the industry and supply chains, continuously Purchasing
Streamline the Number of
enhancing scientific and technological support capabilities". The Company regards supply chain governance as a crucial Concentrated
Suppliers
foundation for supporting strategic implementation and high-quality development. The Company focuses on the full lifecycle Standardization Group Purchasing
Multi-Purchase Unified Integrate Supply-side Operations
management of suppliers, formulating and improving systems such as theNew Supplier (Resource) Development Management Generalization
Procedure, Supplier Management Process, Supplier Admission Management Process, Supplier Audit Process, Supplier
Performance Evaluation Process , and Supplier Exit Management Process . This establishes a supply chain management system
centered on "PDCA", enabling systematic management of suppliers from development, admission, evaluation, to exit.
In terms of organizational structure and division of responsibilities, the Company has established a clear supply chain
management organizational system, led by the Group's Vice President of Operations, with subordinate departments including
Strategic Procurement Department, Planning Department, and Supplier Quality Management Department. The Strategic
Procurement Department is responsible for overall supplier planning and development; the Planning Department handles
procurement contract management, purchase order execution, and the implementation of supplier management tasks; the Demand Purchasing + Management Supplier
Supplier Quality Management Department oversees supplier development, product quality certification, and related activities.
Through clear organizational division of labor and collaborative mechanisms, the Company continuously enhances supply
chain governance efficiency and management effectiveness.
Vice President of Operations, Jingsheng Group
Equipment Manufacturing Department
Strategic Procurement Planning Department Supplier Quality Management
Department (Procurement Execution) Department
Supply Chain Planning rocurement Contract
P irst Sample Certification for
F
Supplier Development Management New Product
New Product R&D Coordination Purchase Order Execution Quality Certification for
Strategic Resource Project Purchased Material Delivery Products from Suppliers
Management Supplier Management Execution Supplier Quality Issue Resolution
Supplier Development and
Improvement
?Purchaser Training
Strategy Supply Chain Opportunity Identification List
Aligning with our business characteristics, the Company strategically identifies key risks and opportunities related to Opportunity Opportunity Response
the supply chain, positioning supply chain management as a critical component supporting stable operations and Opportunity Description Likelihood Financial Impact
Type Timeframe Measures
sustainable development.
Helps reduce Implement
Enhancing supply
production disruption tiered supplier
Supply Chain Risk Identification List Core Supply stability for key materials
risks, improves management;
Chain Resilience and core components Medium-to- Medium-to-
delivery capability, strengthen
Enhancement through full lifecycle Long Term High
Possibility and stabilizes revenue cooperation and
Risk Opportunity supplier management and
Potential Impact on and cash flow development with
Risk Type Risk Description of Risk Response Measures nurturing core suppliers
Timeframe Company Finance performance key suppliers
Occurrence
The Company relies Conduct supplier
Improve supplier
on specific suppliers Deepening collaboration Helps enhance audits and
May lead to production admission and
or regions for certain Supply Chain with suppliers possessing product exchanges;
schedule adjustments, performance
Key Supply raw materials, core Short-to- Collaboration technical advantages and competitiveness promote
delivery delays, and evaluation Medium
Disruption components, and Medium Medium and Technology partnership potential to Medium and gross margin collaborative
subsequently affect procedures; promote Term
Risk specialized equipment. Term Upgrade drive process optimization levels, and innovation
revenue recognition and tiered management
Abnormal supplier Opportunity and product performance strengthens market through supplier
cash flow timing and cultivation of
deliveries may impact improvements responsiveness training and
core suppliers
production continuity development
Inadequate
Note: "Short term" refers to within 1 year, "medium term" refers to 1-5 years, and "long-term" refers to 5 years or more.
management Integrate ESG
by suppliers in May trigger compliance factors into supplier
Supplier environment,
Medium
rectification costs, screening， auditing, Impact, Risk, and Opportunity Management
Compliance occupational health, Medium customer scrutiny risks, and assessment;
Term
and ESG Risk safety, or business and affect business strengthen supplier In supply chain management, the Company has established a management process covering supplier admission,
ethics may lead to cooperation stability rectification and exit performance evaluation, audit improvement, and continuous supervision to systematically identify, assess, and
compliance and management address supply chain-related risks and opportunities, focusing on the potential impacts of procurement activities on
reputational risks operational stability, compliance risks, and sustainable development goals.
Supplier Management Process
Enhance supplier
Fluctuations in raw
performance
Cost material prices and May compress gross
evaluation and
Fluctuation changes in supplier Short-to- margin space and exert
tiered management;
and operations may Medium Medium pressure on operating
improve supply chain
Procurement increase procurement Term performance and cost Supply Chain Supplier
stability through Supplier Quality Supplier Risk Purchase Order
Risk costs or affect control Strategic Performance
strategic procurement Management Assessment Management
procurement stability Management Management
and synergy
Note: "Short term" refers to within 1 year, "medium term" refers to 1-5 years, and "long-term" refers to 5 years or more.
Supplier Admission Banned Substance Control
The Company continuously enhances product traceability and responsible procurement management to avoid
The Company incorporates compliance and ESG requirements during the supplier screening phase, establishes
environmental, health, and trade compliance risks posed by hazardous substances in materials. The Company
a "Qualified Supplier List", and defines supplier admission criteria. Potential suppliers must submit a matrix
requires suppliers to sign the Commitment to Non-Use of Banned Substances , and strictly adhere to clauses such
of qualification documents during the qualification process, including the integrity cooperation agreement,
as the Requirements of Concentration Limits for Certain Restricted Substances in Electrical and Electronic Products .
commitment to non-use of banned substances, quality assurance agreements, business licenses, and on-site
Through proactive management, the Company ensures that purchased products and services meet environmental
inspection materials, which are reviewed by procurement specialists. After passing the review process, suppliers
and safety standards from the source, effectively reducing risks of supply chain disruptions or administrative
are upgraded from potential to provisional suppliers and complete qualification, reducing compliance, quality, and
penalties due to prohibited substances and enhancing the green competitiveness of the entire industry chain.
environmental health risks at the source.
Supplier Empowerment Training
Supplier Audits and Evaluations
The Company regards supply chain management as a key driver for collaborative development, enhancing the
overall level of the supply chain through categorized training and capability empowerment for suppliers. The
The Company has established a supplier performance evaluation mechanism, conducting monthly performance Company conducts workshops and training sessions tailored to the characteristics of different regions and suppliers,
assessments on suppliers based on quality, delivery, cost, and service, while incorporating ESG factors into supply chain covering topics such as antitrust and unfair competition, risk and compliance management, lean production,
evaluations and on-site supplier audit metrics. After evaluations, the Company holds supplier performance meetings to production line automation upgrades, performance research, equipment performance improvement, and quality
implement lifecycle management actions such as upgrades, downgrades, or exits based on assessment results. management enhancement. Meanwhile, to adapt to market changes and procurement strategy upgrades, the
Company has established a dedicated supply chain team to conduct annual on-site visits to key suppliers. Through
in-depth communication and forward-looking assessments, the Company strengthens strategic mutual trust and
Based on performance evaluations and on-site audit results, the Company further develops supplier audit plans,
builds a more stable, efficient, and resilient core supply chain system.
driving continuous improvement through on-site audits, issuing corrective actions, creating improvement plans,
and tracking verification of improvements. For suppliers with excellent performance that meet requirements,
the Company provides incentives such as increasing total procurement volume and upgrading them to qualified Supplier Performance Evaluation Indicators
suppliers. For suppliers with consistently poor performance over three consecutive months and ineffective
rectification, the Company will implement management measures such as downgrading or removal to maintain
Qualification, Safety and Technical Level and
overall supply chain stability and compliance. In 2025, the Company had no suppliers removed due to failed audits. Environmental Protection Performance
Operating Conditions and
Product Design and
Financial Risks
Certificates Innovation
Transparent Procurement
Environmental Green and Safe Raw Material and Product
Workplace Safety
The Company places high importance on integrity and compliance management in the supply chain to mitigate Protection Warehousing and Logistics Traceability Management
compliance and reputational risks arising from commercial bribery or unfair competition. In accordance with
relevant anti-bribery laws and regulations, the Company requires all partners to sign the Partners Integrity
Cooperation Agreement and conducts bidding and quotation activities through an open and traceable SRM system.
By establishing a whistleblowing verification mechanism and breach management measures, the Company can Hazardous Chemicals Supplier Quality Management
Product Design
effectively identify and curb integrity risks in the supply chain, ensuring transparency in procurement processes and Management Management System
strengthening the foundation for stable operations.
Meet the material and service needs of business operations, improve operational efficiency, and
maximize corporate value
Ensure procurement activities and supplier management comply with applicable national
laws, regulations, and internal corporate policies
Develop and maintain competitive, stable, and long-term supplier relationships to
support corporate sustainability strategy
Supply Chain
Management
Targets
Ensure proper authorization of procurement activities, segregation of duties for key
procurement processes, and mitigation of procurement risks
Maintain accurate and complete procurement transaction records for effective management
and tracking
?In January 2025, the Company hosted the Global Supplier Innovation Conference.
Optimize procurement costs to enhance product market competitiveness and business operational
efficiency
Equal Treatment of SMEs
In supply chain cooperation, the Company adheres to the principles of fairness, impartiality, and transparency,
treating all suppliers, including small and medium-sized enterprises, equally. We strictly follow contractual Key Performance
agreements for settlement and payment, with no instances of malicious delays or unjustified late payments of
accounts payable. By standardizing procurement processes and settlement management, the Company safeguards
the legitimate rights and interests of suppliers, fosters long-term, stable, and mutually trusting partnerships, and
In 2025, the Company had a total of 1,526 suppliers, of which
jointly promotes the health and sustainable development of the supply chain.
Indicators and Targets 94% of the suppliers conducted social impact assessments;
and 94% of the suppliers conducted environmental impact assessments.
In terms of indicator and target management, the Company sets corresponding management indicators and work
objectives aligned with the overall goals of procurement and supply chain management, focusing on the ability to
meet material and service demands, procurement compliance, operational efficiency, and cost control effectiveness.
During the reporting period, all supply chain management targets were achieved.
Empowering Talent to
Build Tomorrow's Success
JSG adheres to long-term development goals, considering talent
and organizational development as key components of corporate
strategy and governance. By improving management mechanisms,
continuously enhancing employee capabilities and organizational
collaboration, ensuring occupational health and work safety, aligning
employee growth with corporate development, and strengthening
organizational resilience and adaptability, we lay a solid foundation for
stable operations and long-term value creation.
Employee Rights and Benefits
Employee Development
Employee Care
Occupational Health and Safety
Employee Rights and Benefits Educational background of R&D personnel Age distribution of R&D personnel
JSG upholds lawful and compliant employment practices, treating fair hiring and standardized management as
fundamental to human resource governance. We strictly comply with national labor laws and regulations, including the 52.86%
Labor Law of the People's Republic of China and the Labor Contract Law of the People's Republic of China , to safeguard
employee rights and interests. In talent recruitment, employment management, and organizational operations, the
Company continuously reinforces principles of equality, non-discrimination, and inclusion, firmly preventing violations
such as child labor and forced labor. By improving institutional frameworks and democratic communication mechanisms,
we promote synergy in employee diversity, organizational cohesion, and governance transparency. 37.74%
Equal Employment Doctor's degree 50 people Above 40 (inclusive) 138 people
Master's degree 506 people 30 to 40 (inclusive of 30, exclusive of 40) 554 people
The Company adheres to the principles of equal and non-discriminatory employment practices. It strictly complies Bachelor's degree 524 people Below 30 (exclusive) 776 people
with relevant laws and regulations and has formulated a Diversity, Equity and Inclusion Policy to establish standards for Associate degree or below 388 people
equal employment and the protection of employee rights and benefits. In its employment practices, the Company firmly
opposes child labor and any form of forced labor. It continuously strengthens compliance in employment management, The Company regards talent development as a key pillar for long-term growth, continuously improving our talent
fostering a fair, just, and harmonious working environment. The Company maintains a zero-tolerance stance toward development and management system around attracting, utilizing, and retaining talent. For external recruitment, the
any form of discrimination or unethical employment practices, actively promoting the standardization and healthy Company employs multiple channels such as campus recruiting, social recruiting, and online platforms to attract talent,
development of labor relations. Meanwhile, the labor management system established by the Company applies not only standardizing job postings and hiring processes to ensure full disclosure of information and fair selection mechanisms,
internally but also extends to suppliers and outsourcing partners, jointly maintaining a healthy and orderly labor market. fostering an open, transparent, and non-discriminatory employment environment.
Key Performance In terms of internal talent mechanisms, the Company focuses on stimulating organizational vitality, encouraging
reasonable internal mobility of top talent, and promoting employee participation in internal referrals. The Company
As of December 31, 2025, the Company had a total of 5,745 employees, with a 100% labor contract clearly defines the responsibilities, qualifications, and compensation for each position, disseminating internal job
opportunities to all employees through internal platforms to ensure full visibility and fair competition for roles.
signing rate and 5.91 % core employee turnover rate Note
; there were no incidents of forced labor, child labor,
Simultaneously, the Company has established a talent referral mechanism and Implementation Standard of Internal
or other violation events involving employee rights. Referral Bonus for Recruitment of Internally Recommended Positions , and introduced the "Talent Scout Award" with
corresponding bonuses. This initiative covers nearly 65 positions across 17 business lines, continuously motivating
employees to participate in talent referrals and broadly attracting individuals from diverse backgrounds and professional
Employee Gender Structure Staff Position Structure Key Performance
In 2025, a total of
CNY 39,250, and 43 new employees were hired through referrals.
Production positions 3,692 people
Male 4,869 people Female 876 people Sales positions 126 people
Technical positions 1,468 people
Financial positions 108 people
Administrative positions 351 people
Note: The calculation method is the number of employees at Grade 7 and above who left the Company divided by ((the number of
employees at the end of 2025 + the number of employees at the beginning of 2025) / 2). This applies only to regular employees and
those rehired after retirement, excluding individuals who joined and left within the same year. ?"Talent Scout Award" Poster ?Campus Recruiting Poster
Diversity and Inclusion Case Organizing a "Goddess Day" Fun Sports Meet to Promote Diverse Exchange and Team Integration
The Company highly values the differences and uniqueness of our employees, recognizing the strategic importance
In March 2025, the Ningxia Yinchuan Park organized a fun sports meet for female employees in conjunction
of a diverse and inclusive workplace culture in attracting top talent. We have established the Diversity, Equity, and
with Women's Day. The event encouraged active participation from female staff, fostered communication
Inclusion Policy , applicable to all employees and suppliers, supervised by the Board of Directors, managed by the
among employees through engaging activities, helped alleviate work pressure, and promoted
Audit Committee, and implemented through a standing committee. Whistleblowing channels and reward-penalty
understanding and collaboration between employees of different roles and backgrounds. This initiative
mechanisms ensure the deep-rooted integration of diversity and inclusion within the organization.
contributed to creating an open and inclusive organizational environment while enhancing team cohesion.
At the same time, the Company is committed to safeguarding employee rights and firmly opposes discrimination
and harassment based on race, culture, religion, age, gender, or disability. The Company provides comprehensive
benefits and care facilities for female employees while also focusing on the development of individuals with
disabilities and other special groups. We offer equal work and promotion opportunities for all employees, supporting
them in fully utilizing their talents and achieving professional value. Additionally, the Company arranges specific
holidays for ethnic minority employees, fostering the deep integration of employee diversity development with
corporate strategic goals, thereby creating a fair, inclusive, and dynamic organizational culture.
Key Performance
As of the reporting period end, the Company:
had 263 employees from minority ethnic groups, 7 employees with disabilities, and 35 military veterans;
?Goddess Day Fun Sports Activity
had 131 newly hired female employees, bringing the total number of female employees to 876. Among
them, 58 are in management positions , and 16 are senior executives
Note 1
. Note 2
Respecting Multiculturalism, Building a Harmonious Enterprise — the Company Implements Holiday
Case
Arrangements for Ethnic Minorities
Launching International Women's Day Gift Care Activity to Foster a Diverse and Inclusive The Company values and actively practices the principles of
Case
Workplace Atmosphere employee diversity and inclusive development, respecting and
supporting the cultural customs and holiday traditions of employees
In March 2025, the Company organized holiday care activities for female employees during International from different ethnic groups. In 2025, the Company specifically
Women's Day, distributing holiday gifts to express respect and gratitude. This initiative highlighted the implemented holiday arrangements for traditional ethnic minority
Company's recognition of the value and contributions of employees of all genders, enhanced female employees' festivals such as Eid al-Adha and Eid al-Fitr for business units in
sense of fulfillment and belonging, and promoted a workplace culture of diversity, equality, and inclusion. the Ningxia region, demonstrating our corporate culture of ethnic
equality, unity, and mutual support through concrete actions.
This initiative not only demonstrates respect for employees' ?Ethnic Minority Holiday Arrangements
diverse backgrounds but also fosters a more open, inclusive, and of the Company
harmonious work environment, continuously promoting the deep
integration of corporate culture and talent development.
Democratic Communication
?Distribution of International Women's Day Gifts The Company adheres to the fundamental principles of equality, democracy, openness, and consultation, continuously
improving communication mechanisms for employee participation in corporate governance. We place high importance
on employees' expression of opinions and effective involvement, considering their voices as a vital foundation for
Note 1: "Management" covers employees of JSG at Grade 5 and above; driving continuous organizational improvement and high-quality development. By establishing a multi-level and regular
Note 2: "Senior Executives" include Directors, Deputy Directors, General Managers, Deputy General Managers, Presidents, and
communication and feedback system, the Company continuously expands channels for employees to voice concerns,
participate in consultations, and offer suggestions. This promotes more scientific, transparent, and inclusive management
Vice Presidents.
decisions, steadily strengthening the foundation of harmonious, stable, and mutually beneficial labor relations.
Workers' Congress JSG's Employee Service Center Structure
The Company regularly convenes Workers' Congresses to actively listen to and address employee concerns, engage
Employee Service Center
in thorough consultations on labor management matters, and foster a collaborative, mutually trusting, and win-
win labor relationship. This approach continuously cultivates a cohesive and dynamic corporate culture while
strengthening organizational unity and driving innovation. In 2025, the Company elected the Fourth Committee of
the Zhejiang Jingsheng Mechanical & Electrical Trade Union Joint Committee, the Fourth Fund Review Committee,
and the Sixth Board of Directors' Employee Representative Director. Key topics such as trade union regulations,
financial systems, and human resources policies were reviewed and discussed with employee representatives.
Employee Affairs Talent Service Administrative Service IT Service Financial Service
Case Convening the First Session of the Fourth Workers' Congress and the First Session of the Fourth
Employee Feedback and Communication Channel
Trade Union Members' Congress
In December 2025, the Company solemnly convened the First Session of the Fourth Workers' Congress and Online Offline
the First Session of the Fourth Trade Union Members' Congress. Representatives from multiple locations
jointly exercised their democratic rights to deliberate on major plans for the Company's development. The
Employee Satisfaction Survey Symposium
Congress listened to and deliberated on the JSG Trade Union Work Report , reviewed and voted to approve
Feedback Hotline: 0575-82333726 Solicitation of Comments
key institutional documents such as the Proposal for Revision of Trade Union Regulations , the Proposal for
Complaint Mailbox: syhrssc@jsjd.cc Employee Mailbox
Revision of Human Resources Policies , and the Proposal for Revision of Financial Systems . Additionally,
Windows of Employee Service Center
it elected 11 members to the Fourth Trade Union Committee of JSG, 3 members to the Fund Review
Committee, and 1 Employee Representative Director.
Key Performance
In 2025, through both online and offline employee feedback communication channels, the Company
received a total of 57 pieces of employee feedback. The feedback handling rate was 100%; there was no
incident involving the leakage of employee information or the content of feedback/complaints.
The Company continuously focuses on employee experience and organizational performance, establishing a
?On-site Meeting of the Workers' Congress regular employee satisfaction survey mechanism. Through annual surveys, common issues are identified to
provide decision-making support for management optimization and capability enhancement. In 2025, based on
the existing survey framework, the Company further optimized questionnaire design, expanding coverage to topics
Employee Feedback Mechanism such as human resource management, performance incentives, administrative services, and leadership behavior,
to comprehensively understand employees' views and suggestions on Company operations and personal growth.
The Company consistently prioritizes employee feedback, continuously improving the employee communication platform with The Company conducts systematic analysis of survey results and continuously implements improvement measures
employee sharing service center as the core, facilitating an upward feedback mechanism through various communication channels based on feedback to synergistically enhance organizational efficiency and employee satisfaction.
such as regular symposiums, soliciting opinions, and an employee mailbox. The Company encourages employees to fully voice their
concerns on matters related to them, continuously enhancing their sense of participation and organizational transparency. Key Performance
Additionally, the Company has established standardized and formal employee grievance and whistleblowing mechanisms with
corresponding procedures. Employees can submit complaints or reports anonymously or by name on issues such as employee
In October 2025, the Company conducted an employee questionnaire survey and compiled the 2025 Group
rights, performance evaluations, compensation and benefits, diversity and equality, anti-harassment and anti-discrimination, forced
labor, child labor, and employee welfare. The Company has established clear procedures for complaint acceptance, investigation,
Questionnaire Survey Report , covering 85.71% of employees, with a satisfaction score of 4.19 out of 5;
and resolution, which are jointly advanced by relevant responsible departments. For situations verified to potentially adversely affect
employees, timely remedial and management improvement measures are taken. A whistleblower protection mechanism is also The survey identified 13 suggestions for improvement in administration, environmental safety, information,
established to strictly safeguard the personal information of complainants and whistleblowers, preventing any form of retaliation.
Additionally, the handling results are appropriately communicated or disclosed to effectively protect employees' legitimate rights and human resources, etc., with 12 measures proposed and implemented, achieving a correction rate of 92.31%.
interests, fostering positive interaction and harmonious development between the Company and our employees.
Employee Development Key Measures of Performance Appraisal Personnel Management
Set annual Involve core Conduct Establish a Hold regular Promote a
performance personnel in monthly/ performance performance continuous
JSG adheres to placing talent development at the core of corporate strategy, committed to building a growth and incentive goals and goal-setting, with quarterly appeal channel, review meetings, improvement
system spanning the entire career lifecycle. Through systematic training, scientific incentive mechanisms, and multi- indicators every management evaluations allowing where direct mechanism by
dimensional career paths, the Company continuously enhances employees' professional skills, managerial competence, and six months, review and by business individuals who supervisors analyzing monthly
comprehensive competitiveness. Guided by the "Crystal Craftsman" pyramid philosophy to strengthen talent foundations— clearly breaking approval followed department, with disagree with communicate and quarterly
"a strong base leads to a high peak"—JSG deepens the integration of employee value with corporate strategy, fostering them down by formal sign- HRBP responsible evaluation results with employees performance
synergistic development of personal growth, team building, and long-term sustainable enterprise success. to individual off from all for collecting to file formal about data, generating
levels to ensure employees evaluation appeals, with performance improvement
objectives are to enhance results, feedback, HRBP following outcomes, areas recommendation
Compensation Incentives
specific and ownership and and handling up and providing for improvement, reports, and
measurable. execution. employee closed-loop and development consistently
appeals. feedback. plans. optimizing
the evaluation
The Company prioritizes talent motivation and value realization, establishing a comprehensive incentive system system.
encompassing compensation, performance, equity, and awards. Through scientific design and sustained investment,
JSG fully activates employees' work enthusiasm and creativity.
Incentive and Commendation Mechanism
Compensation Performance System The Company has established a diversified incentive system covering promotions, salary increases, equity incentives,
and bonus rewards, committed to providing employees with fair and substantial returns to effectively motivate
The Company has developed a scientific, reasonable, and market-competitive compensation system, adhering to fairness and retain key talent. In response to the Company's strategic development needs, since 2015, the Company has
principles without setting starting salaries or reward standards based on gender, religion, political background, marital implemented three phases of stock option plans and one phase of an employee stock ownership plan, benefiting
status, or similar factors. The compensation design incorporates a variable mechanism, dynamically adjusted based on over a thousand participants. This enables employees to share in the Company's growth, fosters deep integration of
employees' work performance and contribution levels, aiming to motivate high-performing employees to realize their personal value with corporate development, and achieves mutual progress for both employees and the enterprise.
potential, attract, develop, and retain top talent, thereby continuously enhancing the Company's overall competitiveness.
Employee Incentive Mechanism
Employee Compensation Composition Promotion and Salary Increase
Annual Salary Increase; Twice-A-Year Promotion Opportunities.
Stock Incentive
Variable Salary
Fixed Salary
Standard Job Salary Special Patent Bonus
Duty Allowance Merit Bonus Stock Incentive
Overtime Pay
Core Talent Stock Incentive Plans.
Building on this foundation, the Company continuously refines our performance management mechanism, breaking down Bonus Incentive
and implementing corporate strategic objectives across business units and positions, and establishing a regular evaluation
and feedback process centered on work performance. Performance assessment results are directly linked to incentives such Performance Bonus, Year-End Bonus, Special Bonus (for R&D Positions), Patent Bonus,
as quarterly bonuses, excellent performance allowances, and promotion evaluations, effectively encouraging employees to Excellence Award, and Assistance Fund.
improve work efficiency and output quality, thereby aligning individual value with corporate development goals.
Refining the Incentive and Recognition Mechanism to Promote Employee Growth and Enhance
Jingsheng Academy
Case
Organizational Vitality
Jingsheng Academy, as a unified training platform managed by the Group's Human Resources Center, serves as the
To further incentivize exceptional employees, the Company held its 2025 Awards Ceremony under the theme foundational support for the Company's talent development. To standardize training operations, the Company formulated
"Steeds of Virtue, Journey to Excellence". During the ceremony, over CNY 15 million in bonuses were granted and implemented the Code of Management for JSG Academy , systematically clarifying training responsibilities and
to individuals in recognition of their contributions to technological innovation and value creation, including implementation processes, while continuously advancing the development and updating of training resources. Building
outstanding technical engineers, advanced workers, exemplary cadres, and outstanding Communist Party on this foundation, the Company focuses on employee capability enhancement, flexibly combining internal and external
members. In addition, more than CNY 1.9 million was awarded to teams and individuals who demonstrated training while aligning training with practical application. We conduct targeted training to address knowledge and skill
excellence in patent creation and commercialization, reinforcing the Company's commitment to innovation- gaps, continuously improving the professional competencies and technical skills of employees across all positions.
driven incentives. Awards were also presented to teams and individuals for honors such as the Excellence in
Dedication Award, Technological Innovation Award, and Management Progress Award. Through a systematic Organization Chart of Jingsheng Academy
and multi-tiered recognition and incentive framework, the Company continues to stimulate innovation and
dedication among employees, providing strong talent support for high-quality development.
Human Resources Center
Talent Development Committee
President of Jingsheng Academy
Academic Dean
Training Specialist Internal Training Team External Training Institution
?"Steeds of Virtue, Journey to Excellence" Awards Ceremony
Capability Development JSG's Training System Platform
The Company places high importance on talent development and is committed to building a systematic and
comprehensive employee capability development system. Through continuous learning and training, we aim to
holistically enhance employees' professional skills, management capabilities, strategic thinking, teamwork, and
overall competencies. Whether it involves guiding new employees in adapting to their roles and facilitating their Counseling
growth, developing leadership capabilities and strategic thinking among managers, or enhancing the professional
skills of key positions, the Company consistently adopts scientifically planned, continuously invested, and diversified Internal Training Certification Theme Training Camp
training approaches. These efforts support employees in expanding their horizons and pushing the boundaries of
Coursework/Project Practice
their capabilities, driving the simultaneous advancement of personal growth and corporate development.
Key Performance
External Channel Online Course Coursework Sharing
During the reporting period, the Company invested CNY 2.42 million in training, with 5,745 employees Official Account of Jingsheng
receiving training, achieving a 100% coverage rate, and an average duration of 18 hours per employee. Cultural Academy
Courseware Lecturer
Promotion
The Company provides support for examination fees, degree programs, and professional certification Training System Platform New Employee Training
acquisition to all employees (including contract and part-time staff), assisting them in enhancing their
Video Lecturer
professional competencies and educational qualifications. To date, a total of
relevant certifications, with an accumulated investment of more than CNY 70,000 in 2025
New Employee Training
Case Mentorship Mechanism Promotes the Development and Knowledge Transfer of Young Talents
Guided by the Code of Management Trainee Camp and Continuous Training , the Company annually selects outstanding
In July 2025, the R&D Center held a new employee
candidates from campus recruitment to join the management trainee program, providing systematic training and
apprenticeship ceremony, with new R&D employees and
development over a two-year period. Management trainees are required to complete multiple professional training camp
senior engineers participating together. Through one-on-
courses during their tenure. Through various forms such as job rotations, internship practice, and final presentations,
one guidance, the Company facilitates knowledge transfer
they will comprehensively enhance their professional skills, communication and coordination abilities, teamwork, and
and practical guidance, helping newcomers address
innovative awareness. The goal is to cultivate high-quality talents capable of independently assuming job responsibilities,
capability gaps and deepen professional accumulation.
achieving the strategic objective of "Empowering employees, accomplishing the Company".
This mechanism strengthens technical inheritance and
Simultaneously, the Company organizes a series of new employee orientation activities. Each subsidiary and department talent echelon construction, promotes the continuous
implements new employee training tailored to their specific business needs. Building on the tradition of "mentoring and growth of young employees in practice, and provides
support", the Company leverages the exemplary and guiding role of highly skilled technical talent. Through a one-on-one stable support for the long-term development of the
mentorship system, JSG fosters the continuous growth of young professionals and ensures the transmission of experience. Company's core technical capabilities.
?New Employee Apprenticeship Ceremony
Case JSG Conducted 2025 New Employee Orientation Activities
In July 2025, the Company organized an orientation training program for the 2025 cohort of new graduates, with over 100 Leadership Training
new employees participating. Company executives and business leaders systematically introduced the corporate strategic
The Company adheres to the philosophy of continuous growth for managers, conducting systematic training for
direction, R&D positioning, and value philosophy to new employees through orientation sessions, industry and product
different positions and management levels over the years to enhance their leadership, team management, and
training, and corporate culture promotion. This approach guides new employees in establishing a professional mindset
strategic thinking. Through courses such as Team Leader Leadership Training, Equipment Lean Management
focused on dedication, pragmatism, and innovation, assists fresh graduates in smoothly transitioning into their roles, enhances
Training, and Group Strategy Seminars, the Company helps managers broaden their perspectives, break through
their sense of organizational identity, and lays a solid foundation for their career development and long-term growth.
boundaries, and strengthen their sense of mission regarding the importance of team management. The Company
enhances their ability to identify and retain talent, continuously fosters the growth of outstanding individuals, and
enables them to take on greater responsibilities in business execution, team building, and strategic decision-making.
This provides solid talent and leadership support for the sustainable development of the enterprise.
JSG Leadership Training System and Course Offering
ole Recognition and Competency
R
Enhancement of Team Leaders
Quality and Competency Enhancement How to Become a Coaching Leader
?2025 New Employee Orientation Activities of the Company Training of Team Leaders How to Improve Team Cohesion
Time Management and Efficient Execution Roland Berger Competency Model
Team Building ……
High-efficiency Execution
……
Current Managers' Leadership Training New Managers' Leadership Training
Key Performance
Since 2019, the Company has conducted leadership training for current and newly promoted managers for 7 consecutive
?R&D Center Orientation Training ?New Employee Compliance Training years, with 5 sessions held in 2025, covering 230 management personnel with a total training duration 15 hours.
Conducting Leadership Training for Team Leaders to Enhance Grassroots Management and Case Holding a Group Strategy Seminar to Strengthen Leadership Development and Talent Advancement
Case
Exemplary Capabilities
In August 2025, the Company held the annual Group Strategy Seminar, attended by senior executives, subsidiary
In 2025, focusing on the development of frontline management capabilities, the Company organized leadership leaders, research institute directors, and outstanding young talent representatives. The seminar featured systematic
enhancement training for team leaders in the sapphire business unit. The training invited an associate professor discussions on industry trends, technological breakthroughs, organizational efficiency, and global strategy, along
from Ningxia University, a senior corporate trainer certified by the Ministry of Human Resources and Social with specialized training for young talents to enhance goal management and decision-making skills. By fostering
Security, and an in-house senior trainer as instructors. A total of 66 team leaders and section chiefs participated. strategic alignment and leadership empowerment, it facilitated collaborative growth between management and
The training was conducted through foundational leadership courses, case studies, and group discussions, with young talents, strengthening the organizational and talent foundation for sustainable corporate development.
a focus on improving team leaders' abilities in on-site management, team collaboration, and problem-solving.
This further strengthened their proficiency in refined management and highlighted their exemplary and guiding
role in work safety and operational management.
?Group Strategy Meeting Training
Professional Skill Training
The Company places great emphasis on the continuous enhancement of employees' professional abilities and career
?Sapphire Team Leader Leadership Training
development, consistently increasing support and investment in professional skills training. In 2025, the Company
collaborated with several authoritative third-party organizations, including Shaoxing Shangyu Shengan School and
Yinchuan Lihe Lituo Vocational Skills Training School, to offer a wide range of professional continuing education
courses for key positions in R&D, equipment, safety, and other critical areas. The Company also organized programs
Case Conducting Lean Equipment Management Training to Cultivate Frontline Management Efficiency for academic advancement, specialized skill training, and professional certification acquisition. These diversified
programs help employees improve their professional capabilities, practical skills, and overall competencies, promoting
ongoing talent growth and development. In these training activities, more than 100 employees obtained professional
In 2025, in response to the management needs of equipment manufacturing operations, the Company
certifications, 1,376 employees earned professional titles, and the total investment amounted to more than CNY 70,000.
organized lean management training for relevant leaders and key employees. The training combined
with practical equipment management scenarios, utilizing explanations of lean principles and case
study exchanges to deepen participants' understanding of efficiency improvement, quality control, and Conducting Silicon Carbide AI Specialized Training to Enhance Intelligent Manufacturing
Case
cost management. It promoted the application of lean concepts in daily management and enhanced the and Technical Capabilities
execution capabilities and continuous improvement mindset of frontline managers.
In September 2025, the Company organized a
specialized AI training program focused on silicon
carbide (SiC), aiming to enhance employees' capabilities
in the application of artificial intelligence. The program
combined the characteristics of silicon carbide
materials with the application of AI technologies in R&D,
process optimization, and quality control. The training
strengthened employees' understanding of intelligent
technologies and practical skills, encouraging them to
actively embrace the emerging AI trends and improving
their professional skills and interdisciplinary application
?Lean Equipment Management Training ?Silicon Carbide AI Training capabilities.
Additionally, the Company implements a differentiated cultivation strategy for the R&D team, establishes a dual-path career
Case Launching the Academic Upgrading Program to Strengthen Employees' Technical Capabilities
development model for professional engineers primarily with multiple progression options, supplemented by project
training, competitions, and quality development measures to ensure targeted planning, enabling R&D talents to grow
In 2025, the Company's Equipment Manufacturing Department, recognizing the urgent demand for highly
alongside the Company and fostering a healthy ecosystem of talent growth and strategic organizational development.
skilled talent driven by industrial upgrades and technological advancements, initiated and implemented the
academic advancement program. This program is the first of its kind to systematically combine academic
education with vocational skill enhancement. A total of 95 employees participated in the program. Through
a school-enterprise cooperation and work-study integration model, the program continuously improves Two-Path Development Path of JSG's R&D Personnel
employees' theoretical knowledge, technical innovation capabilities, and overall professional competence.
Outstanding employees are awarded scholarships as a form of encouragement, creating a dual mechanism
Chief Engineer Director
of learning advancement and positive reinforcement. This initiative further opens up growth pathways for
skilled talent, laying a solid foundation for the Company's high-quality development.
Senior Engineer
Technical Path Management Path
Intermediate Engineer Deputy Director
Project Leader
Engineer
?Graduation Certificates and Scholarships Awarded in the Academic Advancement Program Senior- Competency Project Project Porter Cup Luban Cup
Junior Peer Development Competition Training
Mentoring
Assistant Engineer
Development Path
The Company is committed to building a scientific talent development system, guided by a performance-oriented philosophy,
and establishing a career growth mechanism that covers the entire lifecycle. With job performance as the core evaluation
criterion and incorporating regular performance assessments and feedback, the Company offers employees two performance
evaluations and promotion opportunities each year, ensuring personal development aligns closely with the Company's
strategic goals. Through a three-sequence mode, employees can advance along different career paths to become technical
experts or business management talents, achieving a deep integration of personal career planning with the Company's strategic
objectives, while continually enhancing the organization's talent density and core competitiveness.
Development Path Map of JSG's Three-Sequence Talents
Technical Experts Business Talents
?T he Company has held the eighth "Luban Cup" Skills ?The twentieth session of the "Porter Cup" Competition has
Competition to cultivate young technical talent been held, with nearly 100 new R&D employees and their
Project Management Talents Technical Talents Management Talents mentors participating
M-sequence Management
R-sequence R&D Class P-sequence Production Class
Functional Class
Employee Care Key Performance
In 2025, the Company achieved a 100% coverage rate for social insurance, a 100% rate for labor contract
JSG adheres to a people-centered development philosophy and places great emphasis on employee welfare and care signings, and a 100% coverage rate for employee regular physical examination. Employees have the option
systems. Through a combination of improved institutional arrangements and rich cultural activities, the Company
continuously enhances employees' sense of fulfillment, happiness, and belonging. The Company is committed to to join the union upon employment, with a union coverage rate of 97.11%.
expanding the scope of welfare and activities, promoting the collaborative development of material security and
emotional support, and striving to create a stable, harmonious, and positive work environment that fosters mutual
growth between employees and the Company.
Employee Welfare
JSG continually improves its employee welfare system, ensuring comprehensive social insurance coverage for all
employees and a high participation in Trade Union activities. The Company's welfare policies benefit a wide range of
employees. In addition to standard welfare programs, employees enjoy a diversified welfare arrangements, including
welfare holidays, holiday care, various subsidies, and employee events, all aimed at enhancing employees' sense of
fulfillment, belonging, and organizational cohesion.
Welfare Type Content ?Employee coffee Bar ?Employee Gym
· Five social insurances and one housing fund
(covering all employees) · Meal supplements provided in staff canteens
· Periodic physical examination (covering all (covering all employees)
Basic Welfare employees) · Dormitory available (covering all employees)
· Shuttle bus service (covering all employees)
·S
upplementary commercial insurance (for frequent business travelers)
·B
usiness travel subsidy (covering all
employees) · High-temperature subsidy (covering all
Various Subsidies
·T
ransportation subsidy (covering all employees)
employees)
· Annual leave (covering all employees) ·V
arious statutory holidays (covering all
?Summer Cooling Gifts ?Employee Discount Program
· Welfare leave (covering all employees) employees)
Holidays
· International Women's Day (covering all · l actation leave (covering all female
female employees) employees)
·W
edding condolences for employees · Natural disaster relief condolences (covering
(covering all Trade Union members) all Trade Union members)
Trade Union ·M
aternity condolences for employees · Funeral expenses of active employees
Welfare (covering all Trade Union members) (covering all Trade Union members)
·H
ospitalization condolences for employees · Trade Union holiday benefits (covering all
(covering all Trade Union members) Trade Union members)
· Employee internal purchase program (for all
Others employees) · Fitness center (open to all employees)
· Cafe bar (open to all employees)
?Smart Staff Canteen ?Ningxia Park Employee Badminton Activity Center Officially Opened
Employee Activities Case "Winter Harmony · Family-Enterprise Unity" Lamb Festival Enhancing Employee Belonging
JSG places great importance on employee care and cultural development. The Company organizes a variety of employee In December 2025, the Company hosted the 7th "Winter Harmony · Family-Enterprise Unity" Lamb Festival, with
activities, such as endurance challenges and basketball tournaments, to promote physical and mental well-being, as well active participation from Group employees and their families. The event featured food tasting, fun competitions,
as strengthen team cohesion. In addition, during holidays like the Spring Festival and Mid-Autumn Festival, the Company parent-child interactions, and hands-on experiences. Activities such as winter feasts, tug-of-war, Fei Hua Ling
distributes holiday gifts to employees as a gesture of humanistic care. Furthermore, the Company continually optimizes (a traditional poetry passing game), DIY crafting, and calligraphy blessings helped strengthen emotional bonds
canteen services, enriching meal offerings to enhance the overall work and life experience for employees. between employees, their families, and the Company, enhancing a sense of belonging and team unity.
Case Holding New Youth Endurance Challenge to Promote Teamwork and Resilience
In October 2025, the Company held its 11th New Youth Endurance Challenge, with nearly 200 participants,
including representatives from the group and subsidiary company leaders, the 2024 Jingsheng elites, and
This physically demanding challenge, combined with teamwork, reinforced a sense of perseverance and
mutual support. The event integrated practical training into the talent development system, effectively
enhancing young employees' organizational commitment, team cohesion, and stress resistance, laying a
solid foundation for the growth of the Company's young talent.
?Lamb Festival Event
Case Holding "Jingcai Cup" Basketball Tournament to Energize Employees and Strengthen Team Cohesion
In 2025, the Company organized the inaugural "Jingcai Cup" Basketball Tournament, with extensive participation
from frontline employees across R&D, equipment manufacturing, and industrial parks. The tournament was
held with synchronized matches in multiple regions and a centralized final, providing employees with a platform
for sports exchange and fostering cross-team communication and collaboration. Emphasizing fair play and
inclusive participation, the competition effectively enriched employees' cultural and sports life, boosted team
morale, and strengthened a sense of collaboration and perseverance.
Occupational Health and Safety Safety Management Organizational Structure
JSG attaches great importance to occupational health and safety management, considering it a crucial foundation
for the Company's sustainable operations and sound development. The Company and its subsidiaries strictly comply Board of Directors Responsibilities of Joint Workplace Safety Committee
with relevant laws and regulations such as the Law of the People's Republic of China on Workplace Safety and the
Law of the People's Republic of China on Prevention and Control of Occupational Disease . It continuously improves
Implement the principle of "Safety First, Prevention Foremost, and Comprehensive Management",
its occupational health and safety management system and strengthens the foundation of work safety management.
enforce all relevant laws, regulations, rules, and standards, study important issues on work safety,
and report safety work to superior authorities and local safety committees in a timely manner;
Key Honors
Chairman
I mplement comprehensive management of safety work of companies in the joint area,
and be responsible for coordinating, guiding and supervising work safety work;
eview and approve the work safety policies, objectives, management plans,
R
Joint Workplace regulations, safety measures, and plans of the affiliated companies and supervises
Safety Committee their implementation.
Responsibilities of Safety Execution Team
iligently implement national guidelines, policies, laws, and regulations on work
D
safety and the Company's safety management regulations;
Implement the work requirements conveyed by the Joint Workplace Safety Committee, and
improve the supervision and management of safety, environmental protection, fire safety, special
equipment, occupational health, and other safety supervision work in each regional company;
?JSG and Its Subsidiaries' ISO 45001 Occupational Health and Safety Management System Certifications
(Partial Display)
articipate in formulating and revising various regulations on work safety and
P
supervise their execution;
Governance
ssist the Company leaders in organizing work safety meetings, regularly organize
A
Safety Execution
The Company systematically advances the development of its occupational health and safety management system, Team department heads for major safety inspections, organize accident investigations, and
focusing on both work safety and occupational health in line with its operational realities. In terms of workplace safety implement the principle of "no leniency";
management, JSG has established and implemented systems such as the Special Equipment Management System and
the Labor Protective Equipment Management System , setting clear standards for equipment safety and work protection e responsible for organizing the Company's work safety publicity, education, and
B
requirements. Regarding occupational health management, the Company has focused on the creation of systems such as job safety skills training, supervising the implementation of the three-level safety
the Occupational Hazard Prevention and Control System and Occupational Health Operation Standards , which regulate education for employees;
the management of occupational hazard prevention and control, job operation requirements, and employee health
e responsible for organizing the compilation and improvement of emergency plans
B
protection throughout the production process. In 2025, the Company continues to update and improve these systems,
for workplace safety accidents, environmental and hazardous waste accidents, and
further refining safety management practices and enhancing the relevance and operability of the systems, thereby driving
organizing emergency plan drills;
the institutionalization, standardization, and systematization of occupational health and safety management.
In terms of organizational structure and management mechanisms, under the EHS management system, the Company rganize the Joint Workplace Safety Committee to hold a safety special meeting semi-
O
has established a Joint Workplace Safety Committee and a Safety Execution Team, both coordinated and overseen by annually, the Safety Execution Team to hold a safety special meeting quarterly, and
the Board of Directors. This top-down governance structure ensures comprehensive management of occupational health each area to organize a safety special meeting monthly, regularly collaborating with
and safety. The Board of Directors holds ultimate responsibility for the Company's overall occupational health and safety various departments for on-site work safety inspections.
management, including the formulation of safety management policies and objectives. The Joint Workplace Safety
Committee is responsible for coordinating safety management efforts across various business units and subsidiaries.
Strategy Impact, Risk, and Opportunity Management
In line with its high-end equipment manufacturing business characteristics, the Company has systematically
identified key risks and opportunities related to occupational health and safety in its production and operations. In terms of occupational health and safety management, the Company has established a comprehensive management
These factors are incorporated into the Company's overall business decision-making and development strategy, process covering risk identification, assessment, rectification, and monitoring, focusing on the potential impacts, risks,
aiming to continuously enhance operational stability and long-term sustainability. and opportunities arising from production and operations. Through work safety hazard investigation and cooperation
with external inspections by government regulatory agencies, the Company identifies occupational health and safety-
Occupational Health and Safety Risk Identification List related risks in the production process. Any hazards identified during inspections are addressed with rectification
measures, which are tracked and managed for continuous improvement.
Possibility
Risk Potential Impact on For the risks identified, the Company conducts safety training and emergency drills to enhance employees' awareness and
Risk Type Risk Description of Risk Response Measures
Timeframe Company Finance capabilities in safe operations and emergency response, reducing the likelihood of accidents and mitigating their impact. In relation
Occurrence
to factors that may affect employee health, the Company identifies and monitors occupational disease hazards. It also conducts
Involved in heavy equipment, tests and occupational health check-ups for relevant workplaces and employees to assess the status of occupational health risks.
This may result in
mechanical work, and
work stoppages Provide targeted
mechanical operations during By integrating risk identification results with specific management actions, the Company continually improves its
Short-to- for rectification, safety training;
Workplace manufacturing, assembly, occupational health and safety practices, preventing adverse impacts while enhancing its overall occupational health and
Medium Medium compensation standardize work
Safety Risk and commissioning. Improper safety management level.
Term payouts, and processes; conduct
management could lead
delays in project regular safety drills
to personnel injuries or Occupational Health Management
delivery
workplace accidents
This may increase Organize regular
Employees may be exposed The Company places a particular focus on positions involving high labor intensity, susceptibility to periodic fatigue, and
medical check- health check-
Occupational to noise, dust, or specific potential occupational hazards. Priority is given to optimizing and improving relevant work processes to continuously
up and healthcare ups; provide and
Health process environments Medium-to- reduce the occupational health and safety risks faced by employees. Additionally, the Company conducts occupational
Medium costs, and affect standardize the use of
Exposure during prolonged work, Long Term health training to enhance employees' awareness of occupational health risks and their ability to protect themselves.
employee stability protective equipment;
Risk potentially affecting their
and human continuously improve
health
resource efficiency working conditions Occupational Health Management Measures
Note: "short term" refers to within 1 year, "medium term" refers to 1-5 years, and "long term" refers to 5 years or more
Occupational Health and Safety Opportunity Identification List mployees are informed about occupational hazards and their effects, protective
E
measures, and emergency procedures through the posting of occupational disease
Opportunity Opportunity Potential Impact on hazard notification cards at affected workstations and the placement of hazard
Opportunity Description Likelihood Response Measures Occupational Hazard information and warning signs.
Type Timeframe Company Finance
Notification
Systematic advancement This helps reduce Build a robust
Opportunity of occupational health and accident-related costs, occupational health
I dentify and monitor occupational disease hazard factors consistently, establish a
to Improve safety management helps improve production line and safety system;
Medium-to- list of high-risk positions for occupational diseases, and continually improve routine
Production reduce workplace injuries High stability, enhance project continuously
Long Term monitoring and management.
Efficiency and and unplanned shutdowns, delivery efficiency, provide safety
Stability ensuring continuous and and indirectly improve training and hazard Occupational Hazard urchase and maintain safety, health, and environmentally friendly equipment
P
stable production operational performance investigation Prevention and Control and facilities, including special equipment inspections, to ensure the continuous
Management maintenance of hazard protection facilities.
Effective occupational health Organize employee
This helps reduce
Talent and safety management health check-ups;
employee turnover and
Attraction and increases employee sense improve protective
Medium-to- Medium- recruitment/training
Employee of security and satisfaction, measures; strengthen epending on the hazard factors of different positions, provide labor protection
D
Long Term to-High costs, improving the
Retention enhancing the Company's communication on supplies that meet local occupational health and safety protection requirements,
return on human
Opportunity ability to attract and retain occupational health including safety helmets, noise-reducing earplugs, specialized masks, safety shoes,
capital investments Provision of
technical talent management protective goggles, and cut-resistant gloves.
Personal Protective
Note: "short term" refers to within 1 year, "medium term" refers to 1-5 years, and "long term" refers to 5 years or more Equipment
Case Conducting Workplace Safety Month Activity to Enhance Safety Awareness Across all Employees
tandardize the investigation and handling process for work-related injuries. While
S
ensuring that injured employees receive immediate medical attention, an accident In July 2025, the Company successfully launched a month-
investigation team is promptly formed to conduct an investigation. long series of work safety activities under the theme
Work Injury Accident
"Everyone cares about safety and everyone can respond
Handling
to emergencies—Identifying safety hazards around us".
The Workplace Safety Month included activities such as
safety training, emergency drills, knowledge competitions,
and safety awards. The goal was to intensively strengthen
nsure full-cycle coverage of pre-employment, on-the-job and post-employment
E
work safety concepts, guide employees to proactively
medical examinations for employees in positions with occupational contraindications.
identify risks and standardize their operations, further
Establish and maintain employee occupational health surveillance records.
Employee Health solidify work safety responsibilities, create a safer working
Regularly organize health check-ups for all active employees.
Check-up environment, and continuously improve the safety level
of the Company.
?Workplace Safety Month Activity
he Company developed an annual safety training plan, covering occupational health
T
topics such as noise protection, the use of personal protective equipment, and dust Case Conducting Systematic EHS Training to Enhance Workplace Safety Capabilities
Occupational Health hazards and prevention facilities.
and Safety Training In 2025, the Company and its subsidiaries implemented an annual EHS training plan, involving employees
and management from relevant positions. The training covered general topics such as occupational health
and safety, corporate-wide work safety responsibilities, and environmental safety, as well as specialized
Case Conducting Occupational Health Check-up to Strengthen Employee Health Protection training on electrical safety, hazard source identification, hazard investigation, the eight major dangerous
operations, and special equipment. These sessions were conducted at the company, departmental,
and team levels, using a "theory + practice + assessment" model. Through standardized training and
In 2025, JSG's various parks actively organized annual
assessment management, employees' understanding and execution of safety standards were strengthened,
health check-ups for employees in batches, offering
effectively enhancing the Company's overall work safety management level.
comprehensive and professional health services to
show care for their well-being. To reduce employee
travel, the Company coordinated in advance with
health check-up institutions, bringing professional
medical equipment and healthcare teams directly to
the parks. This provided employees with a "one-stop"
convenient service. Personalized check-ups tailored to
different age groups and job requirements were offered,
allowing employees to receive a comprehensive and
efficient occupational health examination on-site.
?Daily Safety Training
?Employee Health Check-up
Workplace Safety Training
The Company has systematically developed and strictly implemented emergency response plans and annual safety
training programs. Regular emergency drills and safety training sessions are organized, combining methods such as
Q&A, exams, practical exercises, and certification to comprehensively assess training effectiveness. These measures
effectively enhance employees' awareness of work safety and standard operating procedures, strengthen their ability
to respond to environmental protection and safety emergencies, and reduce the likelihood and impact of accidents, ?Specialized Training on Hazardous Chemicals, Special Equipment, Emergency First Aid, etc.
thus enhancing the resilience of safety management.
Case Conducting Multi-scenario Emergency Drills to Enhance Emergency Response Capabilities Indicators and Targets
In terms of indicator and target management, the Company and its subsidiaries have established annual safety
In 2025, the Company and its subsidiaries organized annual emergency drills, covering typical scenarios
management targets based on occupational health and safety requirements, combined with operational realities. These
such as earthquake response, fire evacuation, electrical shock handling, and drowning accidents in
targets are tracked and managed to continuously enhance the level of occupational health and safety management.
wastewater pits. These drills simulated real-life accident scenarios to test the operability of emergency
response plans and the efficiency of coordinated actions. The drills effectively enhanced employees'
Occupational Health and Safety Management Targets and Achievements
awareness of hazardous processes and their ability to respond to emergencies. They also strengthened
team collaboration and self-rescue and mutual aid awareness, providing crucial support for the safe and
stable operation of the Company. Target Item Index 2025 Achievement
Major hazard source identification and effective control rate 100% 100%
Major work safety accidents / personal injury incidents 0 0
Safety hazard rectification rate 100% 100%
Safety facility/equipment integrity rate 100% 100%
Compliance with laws and regulations 100% 100%
Identification of important environmental factors and
effective control rate
Incidence rate of occupational diseases 0 0
Key Performance
During the reporting period, the Company invested a total of CNY 9.11 million in work safety;
?Earthquake Drill The Company organized 207 safety training sessions, totaling 533 hours of training, with 6,458 employees
trained. Additionally, 221 special emergency drills were conducted, with 8,645 total participants.
The occupational disease check-up coverage rate for employees in positions with occupational hazards was 100%.
Creating Positive Impact
Together for a Better Future
JSG has always integrated social responsibility into its corporate
development DNA, adhering to the principle of creating economic value
while actively giving back to society and serving the public. The Company
spreads warmth through charitable actions and empowers rural areas
through industrial collaboration. JSG fulfills its corporate citizenship
responsibilities through actions such as educational donations, sports
and cultural support, voluntary blood donations, and rural revitalization
efforts.
Public Welfare
Rural Revitalization
Public Welfare Case
Supporting National Fitness and Sports Philanthropy by Sponsoring Marathon Events for Three
Consecutive Years
JSG adheres to actively fulfilling social responsibilities while achieving its own business development. The Company In 2025, as a sponsor for the third consecutive year, the
actively participates in public welfare activities such as educational donations, sports and cultural sponsorships, Company continued to name and deeply participate
and voluntary blood donations. JSG also engages in various forms of volunteer services, contributing to community in the 2025 Shaoxing·Shangyu Half Marathon, the
building and social harmony. The Company transforms its social responsibility philosophy into concrete actions, 9th Shaoxing·Shangyu Cao'e River Half Marathon,
continuously enhancing its contributions to society and playing a positive role as a corporate citizen. and the 4th JSG Marathon for 1,000 PhDs and Young
Talents. JSG supported the marathons through
sponsorship and volunteer services, ensuring the
safety of participants during the competition. The
total investment for the year reached CNY 350,000. By
supporting these sports events, the Company actively
In March 2025, JSG donated CNY 100,000 to Binjiang Primary School in Shangyu promoted the development of public cultural initiatives
Supporting the Education District to reward outstanding teachers who have contributed to the development in the community, advocated for healthy lifestyles,
Cause in Cao'e Subdistrict of the school's education and sports programs, supporting the educational and showcased its commitment to building vibrant
development of Cao'e Subdistrict. communities and promoting positive social energy. ?On-site at the Shangyu Half Marathon
Supporting the Educational
Development of Bowen In October 2025, the Company donated CNY 100,000 to Bowen Primary School in Case Organizing Voluntary Blood Donation to Alleviate the City's Blood Supply Pressure
Primary School in Shangyu Shangyu District to reward excellent teachers and outstanding students.
District In February 2025, the subsidiary Qiushi Semiconductor responded actively to the call from the Hangzhou Health
Commission and the Blood Center of Zhejiang Province by organizing a voluntary blood donation campaign,
"Blood for the City of Hangzhou". Company executives led by example, encouraging party members and
frontline employees to enthusiastically participate, fulfilling their social responsibility through concrete action.
The Company has established the "Zhejiang University Education Foundation Lu On the day of the event, a total of 7,900 milliliters of blood was donated, providing crucial support for life-saving
Establishing the "Zhejiang
Yongxiang Intelligent Manufacturing Science and Education Fund". In December 2025, treatments. This activity not only spread warmth in society but also further strengthened employees' sense of
University Education
the Company donated CNY 6 million to Zhejiang University to reward outstanding social responsibility, underscoring the Company's active role in public welfare.
Foundation Lu Yongxiang
faculty and staff who have made significant contributions to intelligent manufacturing
Intelligent Manufacturing
education, research, and management, to recognize students with excellent academic
Science and Education
performance and strong character, and to provide financial support to outstanding
Fund"
students from families facing economic difficulties.
Assisting Impoverished
In 2025, the Company donated CNY 100,000 to the Shangyu Charity Federation to
Families in Shangyu
assist impoverished families in Shangyu District.
District
Key Performance
During the reporting period, the Company's total public welfare donations amounted to CNY 7.21 million.
?"Blood for the City of Hangzhou" Voluntary Blood Donation Campaign
Rural Revitalization Case Partnering with Tonghe Village to Support Local Infrastructure Improvement
In May 2025, the Company officially signed a village-enterprise partnership agreement with Tonghe Village
JSG is deeply committed to the implementation of the rural revitalization strategy. Leveraging its resource in Jinhe Town, Jinkouhe District. Through a targeted donation of CNY 20,000, the Company supported the
endowments and technological advantages, the Company continuously works to ensure the effective integration improvement of public infrastructure and the enhancement of the villagers' quality of life. This partnership
of poverty alleviation efforts with rural revitalization. The Company has established a robust "village-enterprise is a key initiative in the Company's deep involvement in the rural revitalization strategy and its commitment
partnership" support mechanism, driven rural industrial upgrades and increasing farmers' income through to fulfilling corporate social responsibility. The financial support effectively alleviates the funding pressure
measures such as regular targeted consumption support and optimizing internal supply channels for specialty on village and town development, promoting sustainable growth in the area. Moving forward, the Company
agricultural products. The Company continues to explore innovative ways to support rural revitalization, promoting will further integrate its resource advantages and continue to explore diversified support models, combining
the modernization of agriculture and rural areas through concrete actions. It strives for coordinated development financial assistance with industrial collaboration, to provide strong support for the realization of shared
between the enterprise and society and contributes positively to the cause of rural revitalization. prosperity in Tonghe Village.
Key Performance
During the reporting period, the Company's total investment in rural revitalization amounted to CNY 650,000.
Case Ningxia Park Purchased Selenium-enriched Sand Melons to Support Farmers' Income Growth
In July 2025, the Company's Ningxia park launched a farmer support initiative to help local melon farmers
facing the "difficulty in selling melons" challenge. The Ningxia park precisely coordinated with melon growers,
Launching a Consumption-based Support Initiative for Farmers to Empower Rural Revitalization in purchasing over 25,000kg of selenium-enriched sand melons, which were given as summer cooling gifts
Case
Hongxing Village to customers in the Jiangsu and Zhejiang regions. This initiative not only ensures stable income for melon
farmers but also rewards customers with high-
To fulfill its corporate social responsibility and contribute to rural revitalization, in August 2025, the Company quality agricultural products, achieving a multi-win
launched a consumption-based support initiative in Hongxing Village, Huangyan Town, Pujiang County, outcome of "assisting farmers, benefiting customers,
Zhejiang Province. The Company purchased over 4,000 grape gift boxes from the village, which were distributed and growing the enterprise". It fosters a virtuous
as high-temperature welfare gifts to all employees. This initiative has been running for five consecutive years. cycle where "enterprises empower agriculture
By establishing stable purchasing channels, the and agriculture drives rural revitalization", deeply
Company has directly provided tangible economic reflecting the Company's core values of "partner
benefits to local farmers and effectively expanded the accomplishment and taking responsibility". Moving
sales channels for agricultural products. The project forward, the park will continue exploring diversified
not only enhances employee welfare but also deeply farmer support models, enhancing agricultural
aligns with the Company's value system of "partner benefits, and contributing to rural revitalization
accomplishment". By combining industrial support through corporate efforts.
with consumption-based support, JSG continues ?Ningxia Park On-site Purchase of Selenium-enriched
to inject momentum into rural revitalization, taking Sand Melon to Support Farmers
concrete actions to support regional coordinated
development.
?G rape Harvesting, Packaging, and Distribution at
Hongxing Village
Key Performance Table Index Unit 2023 2024 2025
Water Resource Utilization
Operational Performance Purchased municipal water m3 3,028,793 3,096,422 3,471,716
t/CNY 10,000
Water resource consumption intensity 1.68 1.76 3.06
Revenue
Index Unit 2023 2024 2025
Water circulation volume m3 34,571,430 88,375,469 77,221,338
Operating revenue CNY 10,000 1,798,319 1,757,661 1,135,749
Net profit attributable to the parent Energy Utilization
CNY 10,000 455,751 250,973 88,473
company
Ton(s) of
Total energy consumption 61,000 67,585 70,964
Total assets CNY 10,000 3,680,836 3,155,018 2,775,623 standard coal
Tax payment amount during the Ton(s) of
CNY 10,000 165,275 138,383 40,596 Total direct energy consumption 68 61 63
reporting period standard coal
Ton(s) of
Total indirect energy consumption 60,932 67,524 70,901
Environmental Performance standard coal
Ton(s) of
Including: Clean energy consumption 1,446 1,031 1,820
standard coal
Index Unit 2023 2024 2025
Diesel consumption Liter 34,710 25,526 36,050
Ecological and Environmental Management
Gasoline consumption Liter 15,080 20,625 24,598
Investment in green environmental
CNY 10,000 3,833 3,582 3,605
protection Renewable energy consumption kWh 11,764,975 8,389,021 14,806,198
Major environmental incidents Case(s) 0 0 0
Purchased electricity consumption kWh 484,010,108 541,025,999 577,508,995
Administrative punishment for
Case(s) 0 0 0 Pollutant Discharge
environmental protection
Addressing Climate Change Total wastewater discharged m3 958,057 1,026,122 1,069,818
Total greenhouse gas emissions tCO2 276,046 308,561 339,417 Total waste water circulation volume m3 45,907 201,212 406,323
Including: Scope 1 tCO2 193,232 215,993 237,592 Waste Treatment
Including: Scope 2 tCO2 82,814 92,568 101,825 Total recyclable waste Ton(s) 1,500 2,062 2,869
tCO2/CNY Total general solid waste Ton(s) 1,100 2,915 1,294
Greenhouse gas emission intensity 10,000 0.15 0.18 0.30
Total general solid waste recycling
Revenue Ton(s) 140 920 558
volume
Disclosed greenhouse gas emission
tCO2 / / 10,412 Total hazardous waste Ton(s) 1,800 1,966 2,100
reductions
Power generation from PV 10,000 kWh 1,038 1,482 1,790 Total non-hazardous waste Ton(s) 2,460 4,057 3,605
Corporate Governance Performance Index Unit 2023 2024 2025
Percentage of suppliers that have
% 100 100 100
Index Unit 2023 2024 2025 signed the Supplier Code of Conduct
Percentage of suppliers who signed
Employee Employment and Rights
agreements containing environmental % 100 100 100
and labor requirement clauses
Total employees Person(s) 7,495 6,111 5,745
Percentage of suppliers for which
Number of employees with disabilities Person(s) 5 7 7 social impact assessments have been % 93 94 94
conducted
Number of employees from minority
Person(s) 304 274 263
ethnic groups Percentage of suppliers for which
environmental impact assessments % 94 94 94
Number of female employees Person(s) 1,165 976 876 have been conducted
Number of female management Percentage of purchasers trained in
Person(s) 57 59 58 % 100 100 100
employees 1
sustainable procurement
Number of female senior executives2 Person(s) 15 17 16 Occupational Health and Safety
Number of employees hired under labor Investment in work safety CNY 10,000 904 1,385 911
% 100 100 100
contracts
Major work safety accidents / personal
Case(s) 0 0 0
Employee satisfaction Points / 4.54/5 4.19/5 injury incidents
Employee performance appraisal Coverage rate of occupational disease
% / / 100 physical examinations for employees in % 100 100 100
coverage rate 3
occupationally hazardous positions
Employee Training and Development
Incidence rate of occupational diseases % 0 0 0
Annual training expenditure CNY 10,000 / 163.25 242.45
Innovation-Driven Development
Total number of employees trained Person(s) 7,495 6,111 5,745
Total number of R&D personnel Person(s) 1,678 1,588 1,468
Employee training coverage rate % 100 100 100 Percentage of R&D personnel in total
% 22.39 25.99 25.55
employees
Average training hours per employee Hour(s) 17.5 22 18
R&D investment CNY 10,000 114,540 111,919 95,498
Core employee turnover rate 4
% 3.39 6.67 5.91
Cumulative number of compiled
Copies 19 23 32
Average employment tenure of core standards
Year(s)/person 8.77 9.71 10.67
employees: male
Cumulative number of patents held by
Case(s) 914 1,069 1,274
Average employment tenure of core the Company
Year(s)/person 7.85 8.83 9.28
employees: female
Cumulative number of invention
Case(s) 172 256 364
Supply Chain Management patents held by the Company
Number of new patents granted
Total number of suppliers Number 1,504 1,386 1,526 Case(s) 345 323 237
annually
Social Performance
Index Unit 2023 2024 2025 Index Unit 2023 2024 2025
Newly added invention patents in the Board of Directors
Case(s) 92 105 107
year
Number of Board Members Person(s) 9 9 9
Distributed patent bonuses CNY 10,000 137 204 192
Number of Female Directors Person(s) 2 2 3
Quality and Safety of Products and Services
Number of Independent Directors Person(s) 3 3 3
Customer satisfaction % 97.8 97 94.5
Business Ethics
Major safety and quality incidents
Case(s) 0 0 0
related to products and services Number of commercial bribery and
Case(s) 0 0 0
corruption incidents
Incidents of customer privacy leakage Case(s) 0 0 0
Total number of employees trained
Social Contribution on anti-commercial bribery and anti- Person(s) 7,495 6,111 5,745
corruption
Public welfare donation investment CNY 10,000 736 753 721
Coverage rate of employees trained in
% 100 100 100
Rural revitalization investment CNY 10,000 62 154 65 anti-corruption and anti-bribery
Total number of directors and
management personnel trained on
Person(s) 66 66 70
anti-commercial bribery and anti-
corruption
Note 1: " Management" covers employees of JSG at Grade 5 and above. Percentage of directors and
Note 2: "Senior Executives" include Directors, Deputy Directors, General Managers, Deputy General Managers, management personnel trained on
% 100 100 100
Presidents, and Vice Presidents. anti-commercial bribery and anti-
corruption
Note 3: The statistical scope of the employee performance appraisal coverage rate includes all non-probationary
Litigation or major administrative
employees.
penalties due to the Company's unfair Case(s) 0 0 0
Note 4: " Core employees" includes employees of JSG at Grade 7 and above. competition practices
Data security incidents Case(s) 0 0 0
Index of Indicators Reader Feedback
Indicator Index of Stock Exchange's Guidelines Dear Readers,
Hello!
Disclosed Topics Report Section
Thank you for your interest in and for reading the 2025 Environmental, Social, and Governance Report of JSG. In order to
Addressing Climate Change Addressing Climate Change provide you and other stakeholders with more valuable information and to effectively enhance the Company's ability and
level of sustainable development, we sincerely look forward to your comments and suggestions. If you have any questions
Pollutant Discharge Management of "Three Wastes" regarding this report, or any valuable opinions or recommendations on the Company's sustainable development
practices, please do not hesitate to contact us so that we can continue to make improvements.
Waste Treatment Management of "Three Wastes"
Your identity:
Ecosystem and Biodiversity Protection Ecological and Environmental Management
□ Shareholder and Investor □ Creditor □ Company Employee
Environmental Compliance Management Ecological and Environmental Management
□ Partner and Industry Association □ Customer □ Supplier and Contractor
Energy Utilization Resource Utilization
□ Media and the Public □ Government and Regulatory Agency □ Others (Please specify: ______)
Water Resource Utilization Resource Utilization
Single-choice Questions:
Circular Economy Circular Economy
Rural Revitalization Rural Revitalization
□ Yes □ Fair □ No
Social Contribution Public Welfare
Innovation-Driven Development Green Industry Synergy, R&D and Innovation environmental dimension (e.g., environmental compliance management, addressing climate change, pollutant and
waste management, energy and water resource conservation, etc.)?
Not applicable. The Company's core businesses do not involve
scientific research, technological development and other activities □ Yes □ Fair □ No
Technology Ethics
in sensitive fields such as life sciences and artificial intelligence
ethics.
dimension (e.g., innovation-driven development, supply chain management, product safety and quality, employee
Supply Chain Security Sustainable Supply Chain development and health and safety, social contributions, etc.)?
Equal Treatment to Small and Medium-Sized □ Yes □ Fair □ No
Sustainable Supply Chain
Enterprises
governance dimension (e.g., business ethics management, ESG management, standardized operations, etc.)?
Safety and Quality of Products and Services Product Quality and Safety
□ Yes □ Fair □ No
Data Security and Customer Privacy 5. Do you think the structure and layout of this report makes it easy for you to find the content you are interested in?
Information Security and Privacy Protection
Protection
□ Yes □ Fair □ No
Employees Employee Rights and Interests
Open-ended Questions:
Due Diligence Compliance and Risk Management
Communication with Stakeholders ESG Management performance?
Anti-Commercial Bribery and Anti-Corruption Business Ethics
Anti-Unfair Business Ethics
management work?
Contact Us:
Address: 500 Shunda Road, Linping District, Hangzhou, Zhejiang
Tel: 0571-88317398
E-mail: jsjd@jsjd.cc
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