Shanghai Huace Navigation Technology Ltd
About This Report 02
About This Report
This is the second Environmental, Social, and Governance (ESG) Report published by Shanghai Huace Navigation Technology Ltd Data Sources
(hereinafter referred to as "CHC Navigation," the "Company" or "we"). The Report provides a detailed disclosure of the practices and
performance of Shanghai Huace Navigation Technology Ltd in its economic, environmental, social, and governance responsibilities for
The information disclosed in this Report is sourced from official internal documents, statistical reports, and annual reports of Shanghai
the year 2025. It aims to facilitate effective communication with all stakeholders and systematically respond to their expectations and re-
Huace Navigation Technology Ltd. The data disclosed herein is derived from the actual operational raw data of CHC Navigation, publicly
quirements.
available government data, annual financial data, internal statistical reports, third-party surveys, and third-party evaluation interviews.
The financial data in this Report is denominated in RMB. In case of any discrepancies with the financial reports, the financial reports
shall prevail.
Reporting Period
The reporting period covers January 1, 2025, to December 31, 2025. To enhance comparability and forward-looking perspective, some
Reliability Assurance
content may extend to previous or subsequent years.
We guarantee that the content of this Report is true, accurate, and complete, and contains no false records, misleading statements, or
material omissions.
Reporting Scope
Definitions
The Report discloses information on the economic, social, environmental, and corporate governance responsibilities of Shanghai Huace
Navigation Technology Ltd and its subsidiaries. Relevant case studies presented are from us and our subsidiaries.
"CHC Navigation," the "Company" and "we" refer to Shanghai Huace Navigation Technology Ltd
How to Access This Report
Preparation Basis
This Report is available in electronic format for your reference. You may access it by visiting our official website. Should you have any
United Nations Sustainable Development Goals (SDGs) questions or suggestions regarding this Report, please contact us via email or telephone.
China Corporate Social Responsibility Reporting Guidelines (CASS-ESG 6.0) issued by Chinese Academy of Social Sciences Official website: www.huace.cn
Guidance on Social Responsibility Reporting (GB/T 36001-2015) issued by China National Institute of Standardization Email: huace@huace.cn
ISO 26000: Guidance on Social Responsibility (2010) issued by International Organization for Standardization Tel: +86 21-64950939
Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (Trial) issued by Shen- This Report is published in both Chinese and English. In case of any discrepancy in the interpretation between the two versions, the
zhen Stock Exchange Chinese version shall prevail.
Shanghai Huace Navigation Technology Ltd
Message from the Chairman 04
Message from the Chairman
business value but also provides powerful support for social safety, resource efficiency, and ecological conservation.
A solid governance system is the ballast that ensures stability in a volatile and changing world.
This year, we further optimized our governance structure to ensure the scientific rigor and independence of our decision-making. We
regard our reputation as our lifeblood, integrating compliance and business ethics into all aspects of daily management. Through regular
internal control audits and anti-fraud mechanisms, we have fortified our line of defense against risks. In investor relations, we adhere to
transparent communication, earning market trust through sincere engagement and rewarding our shareholders for their trust and sup-
port with steady performance growth. At the same time, we have further strengthened our information security infrastructure, providing
reliable support for our digital development and customer trust.
In the face of the challenges of climate change, we choose to respond with the power of technology.
We have embedded green principles into the entire lifecycle of our product R&D—from breakthroughs in highly integrated chips and
low-power algorithms to the large-scale promotion of unmanned operation solutions—all aimed at helping our clients reduce their carbon
footprint. In the field of smart agriculture, our technology helps conserve water and fertilizer, significantly improving resource utilization
efficiency. In clean energy construction, we provide precise support for the planning and operation of wind and solar power projects. In
ecological conservation, we contribute a reliable data foundation for environmental monitoring and resource management. We firmly be-
lieve that precise spatio-temporal data is a crucial cornerstone for a low-carbon future.
A people-oriented approach involves not only nurturing talent but also fulfilling and practicing social responsibility.
We adhere to a people-oriented philosophy, providing a broad development platform for every striving employee and fostering a diverse
and inclusive organizational atmosphere. At the same time, we actively fulfill our corporate social responsibilities, translating our philan-
thropic ideals into practical actions. We continue to support the development of higher education through financial donations, equipment
support, and co-organized competitions to help cultivate future talent. We also actively participate in volunteer services to contribute to
rural revitalization. At CHC Navigation, we always act with a grateful heart, giving back to society through concrete actions.
Looking ahead, sustainability is a marathon with no finish line. We will remain true to our original mission, integrating ESG principles
deeply into our corporate operations and management. Driven by technological innovation and rooted in a sense of responsibility, we
will work hand in hand with our partners to jointly promote the harmonious coexistence of humanity and nature as we build an intelligent
Dear Stakeholders, world. Together, let us empower countless industries with the power of precision—and fulfill our mission with a heart of responsibility!
Time flies, and 2025 has been marked by our persistent and diligent efforts.
Looking back from this new historical juncture, we have once again calibrated our course forward in the vast expanse of spatio-temporal Chairman of CHC Navigation
information. This year, we not only witnessed technological leaps but also gained a deeper understanding that the long-term vitality of an
enterprise stems from a firm commitment to and hands-on practice of sustainability. On behalf of the Board of Directors, I am honored to Yanping Zhao
present our 2025 Environmental, Social, and Governance (ESG) Report, which embodies our reflections and actions. I look forward to
witnessing with you the solid footprints we have left on the path of sustainable development.
The year 2025 has been a pivotal one for us, driven by both "quality" and "intelligence". Grounded in our vision of "Building an Intelligent
World with Precision Spatio-temporal Information", we are propelled by our core driving forces: positioning and navigation, perception
and measurement, and intelligent control technologies. From the official launch of the Global Satellite-Ground Integrated Augmentation
Service platform PointX, to building an agricultural ecosystem centered on our agricultural machinery navigation and auto-steering sys-
tem, and to the comprehensive development of our 3D hardware and software products, our technology is integrating into a wide range
of industries with unprecedented depth. We are keenly aware that every technological innovation and implementation not only creates
Shanghai Huace Navigation Technology Ltd
About CHC Navigation 06
About CHC Navigation
Company Overview Main Products and Services
CHC Navigation is engaged in the R&D, manufacturing, and commercialization of positioning and navigation, perception and measure- We offer a diverse portfolio of products, including the Global Satellite-Ground Integrated Augmentation Service platform PointX, GNSS
ment, and intelligent control technologies, relevant products and solutions.We are a leading enterprise in China’s high-precision spa- surveying and mapping solutions, automated monitoring systems, 3D intelligent perception products, marine surveying equipment, navi-
tio-temporal information industry. gation application solutions, precision agriculture systems, and digital construction tools. Our products serve multiple sectors—including
Agricultural Machinery Navigation and Robotics, Geospatial Information and Spatio-temporal Intelligence, Smart and Digital Construc-
Adhering to our vision of "Building an Intelligent World with Precise Spatio-temporal Information", we have implemented our strategic tion, and Spatio-temporal Perception and Positioning Services—providing tailored technical support and integrated solutions for a wide
layout centered around "three core technologies, three platforms, and four business segments". We focus on positioning and navigation range of industries and application scenarios.
technology, perception and measurement technology, and intelligent control technology, while continuously building a chip platform,
the Global Satellite-Ground Integrated Augmentation Service platform PointX, and an intelligent control platform. We are progressively
strengthening the competitiveness of our various high-precision positioning and navigation intelligent equipment, system applications,
Global Satel-
and solutions across four business segments: Agricultural Machinery Navigation and Robotics, Geospatial Information and Spatio-tem-
lite-Ground Inte-
poral Intelligence, Smart and Digital Construction, and Spatio-temporal Perception and Positioning Services.
grated Augmen-
We follow an innovation-driven development path and place a strong emphasis on scientific research. To date, we have received one tation Service
National Technology Invention Award and four National Science and Technology Progress Awards, and hold over 900 authorized intel- platform PointX
lectual property rights. We are also recipients of the National May 1st Labor Award and have been designated as a National Enterprise Marine GNSS surveying
Technology Center. In the 2020 Mount Everest elevation survey, our BeiDou high-precision positioning equipment successfully reached surveying and mapping
the summit, measuring the height of the world's tallest peak. equipment solutions
As of the end of the reporting period, we have established localized service outlets across 29 provinces in China and have set up
branches in 12 countries and regions, including Hungary, Japan, and Singapore, serving over 140 countries and regions worldwide.
Our products and solutions have been widely applied in industries such as natural resources, agriculture, construction, transportation,
water conservancy, power, education, and environmental protection, and are also entering emerging fields like smart cities, autonomous
driving, and artificial intelligence. Looking ahead, we will continue to invest in R&D, enhance our competitive advantages, and practice Agricultural Machinery
customer-centered values to provide society with more high-quality products and solutions. Navigation and Robotics,
Geospatial Information and
Navigation Spatio-temporal Intelligence, Automated
application Smart and Digital
Construction,
monitoring systems
solutions
and Spatio-temporal
Perception and Positioning
Services
Precision 3D intelligent
agriculture perception
systems products
Digital
construction
tools
Shanghai Huace Navigation Technology Ltd
About CHC Navigation 08
Development History
April 2025: We were honored with the title of In June 2024, we, along with six We celebrated our 20th In April 2022, we were honored In October 2021, we were honored with the
"Advanced Collective of the National Indus- other entities, participated in the anniversary. A postdoctoral with the National May 1 Labor Shanghai May 1 Labor Medal.
try and Information Technology System." project "BeiDou High-Precision research workstation was es- Medal. In November 2021, the project " Key Technolo-
November 2025: Our Global Satellite-Ground R e a l - Ti m e F u s i o n M o n i t o r i n g tablished. In October 2022 and February gies and Large-Scale Engineering Applications
Integrated Augmentation Service platform Technology and Major Engineering In November 2023, our au- 2022, our two major facilities of Centimeter-Level Specialized Mobile Mea-
PointX was officially launched. Applications," which was awarded tomotive-grade integrated in Shanghai and Wuhan were surement Equipment," in which CHC Navigation,
In 2025, our overseas revenue accounted the Second Prize of National products passed ASPICE CL2 officially launched, marking key Wuhan University, and other organizations par-
for 34.26% of the total revenue, and the Science and Technology Progress international certification. milestones in our operational ticipated, won the Second Prize of the National
proportion of overseas revenue continued to Award. expansion. Science and Technology Progress Award.
increase.
In November 2016, our project "Key Technol- In March 2017, we complet- In October 2018, the In October 2019, we were awarded the First On May 27, 2020, the Chinese Survey Team reached the
ogies and Applications of Multi-Mode, Mul- ed our initial public offering Hong Kong–Zhuhai– Prize of the Shanghai Key Product Quality Re- summit of Mount Everest, with our BeiDou high-precision re-
ti-Frequency BeiDou High-Precision Boards" (IPO) and were officially Macau Bridge officially search Achievement Award. ceiver being the only domestic BeiDou receiver used for the
won the third prize in the Shanghai Science listed on the ChiNext board opened. We provided In December 2019, we participated in the Min- summit's elevation measurements by mountaineering team
and Technology Progress Award. of the Shenzhen Stock Ex- surveying services, istry of Natural Resources' Universal Monitoring members throughout the expedition.
In November 2016, our BeiDou receiver i70 change. bridge surface paving for Geological Disasters project. In the same year, we launched our "Xuanji" high-precision
won a Silver Award at the China International solutions, and automat- baseband chip, fully developed and protected by our indepen-
Industry Fair. ed deformation monitor- dent intellectual property rights.
In December 2016, our collaborative project ing for the project. In January 2020, together with seven other entities, we partic-
"Key Technologies and Industrialization of ipated in the project "BeiDou Performance Enhancement and
BeiDou Navigation and Positioning Services", Wide-Area Decimeter Satellite-Based Augmentation Technol-
won the Special Prize in the Shanghai Sci- ogy and Applications," which received the Second Prize of
ence and Technology Progress Award. National Science and Technology Progress Award.
In 2015, our self-developed In October 2012, we undertook the In April 2010, we participated in the In February 2009, our "Geodetic GPS Dual- In March 2005, we devel- On September 12, 2003,
high-precision BeiDou core National High-tech R&D Program Round Table Meeting on China-Africa Frequency Surveying System" was awarded oped the dual-frequency Shanghai Huace Navigation
board passed the appraisal (863 Program)’s major project—the Cooperation in Surveying and Map- the third prize in the Shanghai Science and integrated RTK. Technology Ltd was estab-
and review by six academi- High-Precision Positioning Service ping and donated 12 sets of GNSS Technology Awards. lished.
cians. System and Application Demonstra- equipment to African countries. In October 2009, we successfully developed
tion. In December 2010, we were recog- and localized the core motherboard for a du-
nized as a Key High-Tech Enterprise al-frequency GPS surveying system.
of the National Torch Program. Also in October 2009, our products accom-
panied China’s Antarctic research team on its
expedition to Antarctica, marking the first time
a domestic GNSS system reached the highest
point in the Antarctic interior.
Shanghai Huace Navigation Technology Ltd
About CHC Navigation 10
We launched the Global Satellite-Ground Inte- We built a comprehensive 3D software and We provided technical support for multiple We contributed to the cultivation of surveying
grated Augmentation Service platform PointX, hardware ecosystem: CoProcess 2025 soft- major disaster emergency rescue operations, and mapping talent by supporting 18 university
which enables positioning in environments with- ware, Tiangong Engine 3.0, and the CHC Navi- ensuring technical assurance for emergencies competitions and other events throughout the
out ground network signals. gation CoCloud platform. in Sichuan, Beijing-Hebei, Guangzhou. year, covering over 100 universities nationwide.
We launched the "Wujie·Zhenwei" RTK, apply- We were selected as an analysis center for the We supported the integration of industry, academia, and research in higher education by donating
ing multi-source fusion positioning technology. International GNSS Service (IGS), becoming
the first commercial entity to join the organiza-
over RMB 10 million worth of funds and products to Hohai University, Wuhan University,
and other universities and related institutions.
tion worldwide.
Shanghai Huace Navigation Technology Ltd
About CHC Navigation 12
Corporate Culture Honors and Awards
Date of Award image
Award name Award description
Our vision is "Building an Intelligent World with High-Precision Spatio-Temporal Information". Our mission is to focus on the challenges award
and pressures that matter most to our customers, deliver competitive high-precision spatio-temporal information solutions and services,
continuously create maximum value for them, and contribute to social development. As an advanced unit with outstanding contri-
National Advanced Collective butions in the field of industry and information
April 2025 of the Industry and Information technology, we were awarded the honorary title
Technology System of National Advanced Collective of the Industry
VISION and Information Technology System
Building an Intelligent World with
High-precision Spatio-temporal In- The project "Construction of a BeiDou Standard
formation System for Shipping Safety and Implementation
First Prize of the Satellite Navi-
August of High-Precision Positioning Applications" won
gation and Positioning Science
and Technology Progress Award
Positioning Science and Technology Progress
Award
MISSION CORE VALUES
Focusing on the Challenges and Needs Empowering Clients,
Our Clients Care About
Corporate Striving for Excellence,
Honorary Title of "Top 100 En- We received the honorary title of "Top 100 En-
Values August terprises in the 2025 Geographic terprises in the 2025 Geographic Information
Self-Criticism, 2025 Information Industry" (Third Industry" (Third Place) for our outstanding per-
Focusing on the Challenges and Deliv- Openness to Growth, Place) formance in the geographic information industry
ering Competitive, Precise Spatial-Tem- Integrity and Trust,
poral Information Solutions and Services Teamwork Sixth Panorama Investor
We won the Outstanding Market Value Man-
Constantly Creating Maximum Value for August Relations Golden Award -
agement Award for our excellent performance
Our Clients 2025 Outstanding Market Value
in market value management
Management Award
Geographic Information Science
The project "R&D, Testing, and Application of
and Technology Progress Award
Domestic Core Equipment for the 2020 Mount
Development Strategy October - First Prize for the R&D, Testing,
Everest Elevation Survey" won the First Prize
of the Geographic Information Science and
Core Equipment for the 2020
Technology Progress Award
Mount Everest Elevation Survey
Our strategy is centered around "three core technologies, three platforms, and four business segments". We focus on positioning and
navigation technology, perception and measurement technology, and intelligent control technology, while continuously building a chip
Our project "Key Technologies for BDS/GNSS
platform, the Global Satellite-Ground Integrated Augmentation Service platform PointX, and an intelligent control platform. Our industrial
First Prize of the Natural All-Frequency High-Precision Positioning and
applications include Agricultural Machinery Navigation and Robotics, Geospatial Information and Spatio-temporal Intelligence, Smart November
Resources Science and Development of Domestic Equipment" won the
and Digital Construction, and Spatio-temporal Perception and Positioning Services. 2025
Technology Progress Award First Prize of the Natural Resources Science
and Technology Progress Award
Positioning and Navigation Our project "Key Technologies and Applications
Chip Platform
Technology First Prize of the Natural for the National Geological Disaster Monitoring
December
Resources Science and and Early Warning System" won the First Prize
Technology Progress Award of the Natural Resources Science and Technol-
ogy Progress Award
Three Core Three Global Satellite-Ground Inte-
Perception and Measure-
grated Augmentation Service
ment Technology Technologies Platforms platform PointX
We received the SSE Eagle · Golden Quality
December SSE Eagle · Golden Quality -
Continuous Growth Award for our long-term
stable growth performance
Intelligent Control Technology Intelligent Control Platform
As a new force driving the industry's evolution,
December 2025 A-Share Listed Company -
we were named the 2025 A-Share Listed Com-
pany - Growth Enterprise of the Year
Shanghai Huace Navigation Technology Ltd
ESG Governance 14
ESG Governance Stakeholders Expectations and demands Communication response
• Operating in compliance with laws and
• Compliant operation
regulations
ESG Structure • Performance growth
• Protection of rights and interests
• Improving risk management and internal
controls
• Shareholder dividends
• Periodic and ad-hoc information disclosure
• Information disclosure
We have established a multi-tiered ESG structure, integrating ESG principles into every aspect of our corporate operations. Our Board • Maintaining open investor communication
Shareholders • Investor communication
of Directors fulfills the decision-making responsibilities for ESG matters and provides solid support; our Securities Department coordi- channels
• Integrity in business practices
• Zero tolerance for corruption and bribery
nates the promotion and implementation of various ESG initiatives; and all of our departments and subsidiaries, leveraging their respec-
tive business expertise and resource advantages, effectively integrate ESG principles into their daily operations and translate them into
concrete actions.
• Innovative R&D and design
• High-quality products • Ensuring high-quality products
Our ESG Structure • After-sales service • Responsible marketing
• Privacy protection • Efficient customer service
Customers • Customer privacy and security
• Employment and rights protection • Protecting employee rights
• Employee remuneration and well-being • Transparent remuneration system
ESG Decision-Making Level
Board of
• Career development and training • Clear promotion system
Directors
• Employee safety and health • Strengthening democratic management
Employees
• Democratic communication • Enhancing employee care
• Compliance with laws and regulations
• Lawful operations
ESG Management Level
Securities Depart- • Cooperation with regulatory inspections
ment • Regulatory requirements
• Periodic and ad-hoc information disclosure
Government and • National development policies
• Monitoring national policy developments
Regulatory Agencies
• Supply chain management • Transparent and responsible procurement
ESG Execution Level
All Departments • Cooperation based on integrity and friendship • Supplier management and evaluation
and Subsidiaries Supplier
• Industry exchange
• Technological innovation
• Industry-academia-research cooperation
Industry
Stakeholder Communication • Social welfare • Charitable donations
• Rural revitalization • Volunteer activities
Community and Public
Based on our industry characteristics and operational realities, we have built a multi-tiered and regular communication system focused
on six key stakeholder groups: shareholders, customers, employees, government and regulatory agencies, partners, and communities
and public welfare organizations. Through diverse channels—including our official website, news media, special meetings, periodic re-
• Green factory
ports, and themed events—we have established an efficient two-way communication mechanism. At the same time, we actively listen • Environmental management
to feedback and opinions from all parties, continuously optimize our communication strategies, and constantly enhance the quality and • Low-carbon operations
• Energy conservation and emission reduction
effectiveness of our stakeholder engagement, thereby laying a solid foundation for sustainable development. • Environmental protection initiatives
Environment • Three-waste treatment
• Environmental protection promotion
Shanghai Huace Navigation Technology Ltd
ESG Governance 16
Materiality Analysis
Guided by national policies, industry trends, and our own strategic
priorities, we have systematically analyzed, identified, and assessed
ESG-related topics. This process involved comprehensive consider-
ation of stakeholder concerns, reference to mainstream rating frame- 1 Board of Directors operations 14 Technology ethics
works such as MSCI ESG and Wind ESG, and close collaboration
between external experts and our internal project team. Building on
this foundation—and in full alignment with the Shenzhen Stock Ex- 2 Compliance and risk management 15 Occupational health and safety
change's Self-Regulatory Guidelines No. 17 for Listed Companies—
Sustainability Report (Trial)—we have refined and optimized our topic
framework to develop an ESG materiality matrix. This matrix enhanc-
es the relevance and completeness of our sustainability disclosures,
enabling us to better focus on core sustainable development issues,
proactively address stakeholder expectations, and continuously
strengthen our sustainable development management. 4 Intellectual property protection 17 Employee training and development
Material Topic
Identification Results 5 Anti-bribery and anti-corruption 18 Industry cooperation and development
Anti-monopoly and unfair
Highly 6 19 Social contribution
competition
Material
Impact protection
Materiality 19
Data security and customer privacy
protection
Not
Material
Not Material Financial Materiality Highly Material
Shanghai Huace Navigation Technology Ltd
Robust Governance
Corporate Governance General Meeting of Shareholders
In strict accordance with the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China, the
Rules Governing the Listing of Stocks on the ChiNext Market of the Shenzhen Stock Exchange, and our Articles of Association, we stan-
We strictly comply with the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China, dardize the procedures for convening, holding, and voting at General Meetings of Shareholders. We treat all shareholders equitably, en-
the Rules Governing the Listing of Stocks on the ChiNext Market of the Shenzhen Stock Exchange, and other applicable laws, regu- suring that every shareholder—particularly minority shareholders—can fully exercise their rights to information, participation, and voting.
lations, and our Articles of Association. We continuously refine our corporate governance structure and decision-making mechanisms, This upholds the legality and validity of meeting resolutions and effectively safeguards shareholder rights.
standardizing the division of responsibilities and operational procedures among the General Meeting of Shareholders, the Board of
Directors, and Senior Management. We have established a clear governance framework in which the General Meeting of Shareholders
serves as the supreme authority, the Board of Directors as the decision-making body, and Senior Management as the executive body.
This structure explicitly defines the boundaries of authority and responsibility for each governance entity to ensure standardized, effi-
Board of Directors
cient, and accountable operations. Concurrently, we are committed to enhancing the professionalism and diversity of our Board of Direc-
We elect directors in accordance with the procedures stipulated in relevant laws, regulations, and our Articles of Association, ensuring
tors, leveraging an independent and standardized decision-making mechanism to strengthen governance effectiveness and provide a
that the size and composition of the Board of Directors meet all applicable regulatory requirements. We have established a comprehen-
robust institutional foundation for our stable operations and long-term strategic execution.
sive operational mechanism and internal management system for the Board, clearly defining its duties and authority. This enables direc-
tors to fulfill their responsibilities diligently, exercise sound judgment in decision-making, and actively engage in the work of the Board
and General Meetings of Shareholders—thereby effectively safeguarding the long-term interests of our company and all shareholders.
Corporate Organizational Structure
Case Study: Special Topic Training on Corporate Governance
Board of Directors
In April 2025, we organized a specialized training session on corpo-
Audit Department rate governance, attended by several directors and senior executives.
We were honored to invite Professor Weijun Ge—an independent
director of our company and a professor at the School of Law, Fudan
Executive Management Team (EMT) University—to deliver a keynote lecture titled Revisions to the New
Company Law and Their Implications for Corporate Governance and
the Duties of Directors, Supervisors, and Senior Management. From
a legal and compliance perspective, the session deepened partici-
Human Resources Department Finance Department
pants’ understanding of the latest regulatory requirements and further
strengthened their capacity to conduct operations in a standardized Training Session
manner and fulfill their fiduciary duties effectively.
Strategic Development Department Legal Department
Key Performance
Quality & Process IT Department Administration Department
During the reporting period, we held 13 Board meetings, 6 Audit Committee meetings, 12 Remuneration and Ap-
praisal Committee meetings, and 1 Strategy and Investment Committee meeting, with an average board attendance rate of
Public and Government
Affairs Department 100% .
Board Diversity and Independence
Business Groups and Product and R&D
Supply Center Marketing Center
Business Lines Center
Our Board of Directors includes 3 independent directors, 1 employee representative director, and 1 female director. Board members
possess diverse academic and professional backgrounds, covering various fields such as business management, accounting, and law.
This ensures board diversity, providing a wealth of experience and perspectives for decision-making and helping to improve its quality.
At the same time, we have formulated the Independent Director Work Guidelines, enabling independent directors to perform their duties
independently, safeguard the overall interests of our company, and pay special attention to protecting the legitimate rights and interests
of minority shareholders, thus ensuring the independence and objectivity of decision-making.
Shanghai Huace Navigation Technology Ltd
Robust Governance
Investor Relations Management Internal Control
We place great importance on information disclosure and investor relations management. In accordance with relevant laws, regulations, We consider the development of our internal control system a crucial foundation for standardized operations and risk management. By
and the Articles of Association, we have formulated the Information Disclosure Management System, the Investor Relations Manage- continuously improving our systems and management mechanisms, we enhance our operational management and risk prevention ca-
ment System, and the Market Value Management System. By standardizing information disclosure procedures and strengthening inter- pabilities. We have established an internal control system covering all business segments to ensure that business activities are legally
nal management, we effectively protect the legitimate rights and interests of investors. We also clarify the principles, content, division of compliant, assets are secure and complete, and financial information is true and accurate. At the same time, we strengthen our tax and
responsibilities, and communication methods for investor relations management, continuously enhancing corporate governance trans- financial management and standardize business processes to effectively protect the legitimate rights and interests of us, our sharehold-
parency and market communication to provide institutional support for our standardized operations and high-quality development. ers, and creditors.
Communication Methods Between Us and Investors
Communication methods between Governance
us and investors
One-on-one We continuously improve our internal control governance structure. Under the leadership of the Board's Audit Committee, we have
Announcements Shareholders' Meeting Earnings call
communication established an internal control management system organized and implemented by management and independently supervised and
Advertising, media, and evaluated by the Audit Department. As the lead department for internal control management and evaluation, the Audit Department is
Telephone inquiries Mailed materials Roadshows
other promotions responsible for developing, executing, and tracking the rectification of internal audit plans to ensure the effective operation of the internal
control system. We have formulated and implemented management documents such as the Internal Control Management Manual and
On-site visits Company website the Internal Audit System, which standardize control requirements, division of responsibilities, and supervision mechanisms for various
business processes. This has created a comprehensive system covering key areas such as procurement, sales, capital, finance, and
taxation, continuously enhancing the level of operational standardization and risk prevention capabilities.
Case Study: Ongoing Investor Reception Day Activities
In 2025, we continued to enhance our investor interaction mechanisms by holding three in-person open Investor Recep-
Strategy
tion Day events in April, August, and October, welcoming a total of 237 investors. Our management engaged in in-depth
discussions with investors on topics such as industry development trends, corporate strategic planning, operating perfor- We regard the development of our internal control system as vital support for enhancing governance capabilities and achieving our glo-
mance, and business progress, further enhancing information transparency. Additionally, we maintained an open investor balization strategy and sustainable development goals. We continuously promote the deep integration of internal control with business
hotline, with dedicated personnel responsible for handling inquiries and following up on issues to promptly address inves- management, ensuring stable business operations by strengthening process management and risk identification. We focus on the man-
tor concerns. This has established a regular communication and feedback mechanism, continually strengthening investor agement requirements of the internal control system in terms of compliance, accuracy, security, and process effectiveness. We also view
trust. During the reporting period, we answered a total of 58 questions on the Hudongyi platform – the official investor the optimization of the internal control system as a significant opportunity to improve management efficiency, reduce operating costs,
interaction platform. and enhance risk resilience. Through process standardization and refined management, we continuously improve our operational quality
and governance standards.
Shanghai Huace Navigation Technology Ltd
Robust Governance
Impact, Risk, and Opportunity Management Business Ethics
We combine internal and external audits to regularly assess and continuously improve the operation of our internal control system. We regard business ethics and operational compliance as a fundamental pillar of sustainable development and are steadfast in our
commitment to cultivating a corporate environment characterized by integrity, transparency, and standardization. To this end, we have
implemented a comprehensive anti-fraud management system that spans risk prevention, detection, response, and continuous improve-
ment. We regularly deliver business ethics and compliance training programs to reinforce and deepen employees’ awareness of regula-
tory requirements and ethical conduct. Maintaining a zero-tolerance stance toward corruption and bribery, we have established a secure
Internal audits are organized and implemented by the Audit Department, which conducts special audits
and confidential reporting channel coupled with a robust whistleblower protection mechanism. This encourages internal oversight and
focusing on key areas such as procurement management, fund management, and tax management. By
ensures that all business activities are conducted in strict accordance with applicable laws and regulations.
developing an annual audit plan and employing methods like walk-through tests, sample inspections,
and interviews, the Audit Department carries out an end-to-end review of business procedures to iden-
Internal
audits
tify key risk points and propose recommendations. For high-risk areas, we appropriately increase the
frequency of audits. Through issuing audit reports, defining corrective measures, and tracking their im-
Anti-Bribery and Anti-Corruption
plementation, we promote continuous optimization of management processes in relevant departments,
achieving a closed-loop management system for issue rectification and mechanism improvement.
We have formulated and implemented key policy documents—including the Anti-Fraud Management Measures and the Business Ethics
and Anti-Corruption Policy—which clearly define management requirements and standards for anti-bribery and anti-corruption efforts
across the organization. A comprehensive, full-process integrity risk management mechanism has been established, encompassing
risk prevention, identification, investigation, and rectification. The Audit Department is entrusted with organizing and conducting regular
External audits are conducted by qualified accounting firms, typically in conjunction with the annual supervision and inspections related to business ethics. It also leads special investigations into suspected cases of fraud, bribery, or con-
financial report audit, to independently evaluate the design and operating effectiveness of internal con- flicts of interest, and actively drives corrective actions and management enhancements. Through these structured measures, we contin-
trols related to financial reporting and to issue an internal control audit report. We promptly carry out uously strengthen our capacity to prevent, detect, and mitigate integrity-related risks, reinforcing a culture of accountability and ethical
External
remediation of deficiencies based on external audit findings and further enhance our internal control conduct throughout the Company.
audits
system by incorporating professional recommendations. Through information sharing and collaboration,
internal and external audits effectively integrate process supervision with independent verification, jointly
driving the continuous optimization of our internal control system.
Organizational Structure and Responsibilities for Anti-fraud Work
Case Study: Regular Internal Audits
Organizational Structure and Responsibili-
ties for Anti-fraud Work
We place great importance on the effectiveness of our internal control system. Through the Audit Department, we conduct
regular audits of all subsidiaries and key business functions to ensure operational compliance and asset security. In 2025,
we carried out in-depth internal audits of subsidiaries across multiple provinces and in specialized areas such as fund
management. The audit scope covered core aspects including organizational structure, human resources, fund activities,
procurement, asset management, sales, financial reporting, comprehensive budgeting, information disclosure, guarantee
management, and related-party transactions. We have established a rigorous closed-loop mechanism—“Discovery–Com-
munication–Rectification–Closure”—with clearly defined responsible parties and rectification deadlines. The Audit Depart- Board of Directors,
ment continuously tracks and reviews the effectiveness of implemented corrective actions. Through this ongoing cycle President's Office, all All departments and
Legal Department /
of internal supervision and management optimization, we have further strengthened our risk early-warning and response functional manage- subsidiaries of the All Employees
Audit Department
capabilities, ensuring steady improvement in our overall corporate governance standards. ment departments, Company
and all subsidiaries
Indicators and Targets
We continue to strengthen the management of internal control effectiveness, In accordance with our an- Comply with laws, regu-
ensuring the timely execution of our annual internal audit plan and driving prob- Key Performance
ti-fraud work requirements, lations, and all company
lem rectification and process optimization based on audit findings. During the formulate and continuously policies. If any instance
Establish an anti-fraud
reporting period, we cooperated fully with external audit firms as required to improve management of fraud is discovered, it
work system, handle
complete the annual internal control audit and issue the relevant reports. Over- During the reporting period, we conducted Serve as the responsible systems and operating pro- should be reported to the
fraud reports, and orga-
units for anti-fraud work cedures for each manage- Company's Legal Depart-
all, our internal control system operated effectively, with no material weakness-
es identified. Looking ahead, we will further refine our risk identification and 35 internal audits. nize investigations into
fraud cases
ment line, and designate ment / Audit Department
dedicated personnel to be through proper channels
assessment mechanisms, continuously enhancing our internal control manage-
responsible for anti-fraud
ment capabilities and strengthening our overall risk prevention framework.
work
Shanghai Huace Navigation Technology Ltd
Robust Governance
Compliance Management for Business Partners Training and Awareness
We consider the management of business partners a crucial part of our integrity risk prevention and control. We have formulated and We regularly conduct awareness campaigns on business ethics and integrity compliance.
issued the Supplier Code of Conduct, requiring partners such as suppliers, distributors, and agents to comply with anti-bribery, anti-cor- Through internal announcements, feature articles, and multi-channel awareness activities both
ruption, and other compliance requirements. In managing anti-bribery and anti-corruption, we include business partners within the scope online and offline, we strengthen the compliance awareness of all employees, ensuring they
of our internal audits. Through a full-process management mechanism that includes pre-engagement due diligence, in-process transac- understand policies on anti-fraud, anti-bribery, and fair competition, and promote an integrity
tion monitoring, and post-transaction verification, we review partner qualifications, contract compliance, transaction reasonableness, and culture of full compliance and proactive prevention.
fund flows at least once a year.
Key Performance
For high-risk areas, we conduct special audits as appropriate and refine cooperation management requirements or adopt corresponding
risk control measures based on the inspection results. At the same time, we establish and regularly update compliance files for business
partners to continuously improve our cooperation risk management level. During the reporting period, 100% of employees signed the Integrity Com-
mitment Letter.
Scope of Regular Procurement Audits
During the reporting period, we had no major incidents of commercial bribery or
corruption-related violations, nor were there any instances of being in-
Business Ethics Awareness
vestigated by competent authorities for such issues or having contracts with business
Campaign -- Supplier Code of
partners terminated or not renewed. Conduct: The "Traffic Lights" of
Business Cooperation
Supplier Selection Supplier management Requirements Procurement
and Planning Execution
Anti-Unfair Competition
We strictly abide by laws and regulations related to anti-monopoly and anti-unfair competition. We require all employees to adhere to the
Reporting Channels and Whistleblower Protection Mechanism
principle of fair dealing in their business interactions with customers, suppliers, competitors, and government agencies, and prohibit ob-
taining benefits through information manipulation, abuse of resources, or other improper means. This ensures that all business activities
comply with fair and proper business practices and maintain a healthy market order.
We have established multi-channel reporting mechanisms to encourage employees and external partners to report suspected violations,
either by name or anonymously. We promptly investigate and verify reported matters and strictly implement a whistleblower protection
system, prohibiting the disclosure of whistleblower information or any form of retaliation, thereby fostering a compliance culture of open- Our Fair Competition Principles
ness, transparency, and courageous supervision.
We require employees to adhere to the following principles in all business dealings with customers, suppliers, and competitors:
Complaint and Reporting Channels Fully respect the legitimate rights and interests of all parties and adhere to the principle of fair trade
Address: Building C, 577 Songying Road, Qingpu District, Shanghai, 201706
Strictly prohibit all forms of improper business conduct, including but not limited to illegal and non-com-
Email: audit@huace.cn pliant activities such as information manipulation, abuse of privilege, and misrepresentation of facts
Receiving department: Audit Department
Ensure that all business activities comply with internationally accepted fair competition standards and
strictly adhere to the anti-unfair competition laws and regulations of the countries/regions where the
Company operates, in order to support the creation of a sustainable business ecosystem and achieve
win-win outcomes for all parties
Key Performance
During the reporting period, we had zero cases of litigation or major administrative penalties resulting from unfair
competition.
Shanghai Huace Navigation Technology Ltd
Robust Governance
Information Security Organization and Emergency Management
We have established an information security management team, consisting of an Information Security Leadership Group, responsible for
We attach great importance to information security and data protection, viewing them as a critical foundation for ensuring stable busi- policy formulation, implementation, and supervision to ensure the continuous and effective operation of the system. For sudden security
ness operations and maintaining customer trust. By improving management systems, strengthening technical safeguards, and standard- incidents, we have built a comprehensive emergency management system, including documents such as Management of Monitoring
izing operational procedures, we continuously enhance our information security management, effectively preventing network and data and Security Management Center, Network Security Management System, System Security Management System, Security Incident Re-
security risks, ensuring the safe and stable operation of information systems, and providing reliable support for our digital development. porting and Handling, Storage Media Management System, and Information System Emergency Plan. This is supplemented by technical
measures such as access control, log analysis, firewalls, and a security awareness platform to ensure business continuity and informa-
tion security.
Information Security Management System
Information Security Protection Measures
To strengthen information security governance and ensure robust business operations, we have formulated the Information Security Pol-
icy and Strategy. In alignment with national information security policies and classified protection requirements, we have established a To further strengthen our information security management, this year we upgraded our existing encryption system and integrated ter-
comprehensive, multi-layered information security management system covering data classification, access control, encryption technol- minal management functions, effectively reducing the risk of data leakage from terminal devices. We monitor and control network traffic
ogy, and system operations management—ensuring the integrity, confidentiality, and availability of our information systems. using technical facilities such as firewalls and user behavior management tools, and utilize the MSS online security service platform to
monitor network-wide attack behaviors in real-time, providing timely warnings and responses to potential risks. During the reporting pe-
To ensure the effective operation of this system, we have also established policy documents such as the Composition and Responsi- riod, we conducted 2 network-wide vulnerability scans and 1 attack-surface scan, and remediated and reinforced the identified issues,
bilities of the Information Security Leading Body, the Authorization and Approval Management System, and the Security Inspection and further enhancing the overall security and protection capabilities of our systems.
Audit Management System, which clearly define the division of labor and responsibilities within the management team. The information
security management team comprises a 27-member leadership group responsible for coordinating the formulation, implementation, and
supervision of information security strategies.
Awareness and Training
We strengthen all employees' information security awareness and privacy protection capabilities through internal communication, special
Responsibilities of the Information Security Management Team
topic articles, and online and offline campaigns. In accordance with the requirements of systems like the Information System Personnel
Management System and the Information Security Training Management System, we systematically enhance the professional quality
and risk control capabilities of personnel in information-related positions, starting from both onboarding and training management. The
Research and formulate our information Manage and continuously improve informa- training content covers key areas such as data classification, risk identification, and interpretation of privacy policies to ensure that em-
Responsibilities of
security management system tion security risks ployees handle data processing activities in compliance with regulations in their daily work. We formulate an annual information security
the Information Se-
Organize and conduct information security curity Leadership Review our annual information system secu- training and awareness plan, requiring all employees to participate in at least one basic training session and assessing its effectiveness
inspections Group rity work report through examinations. Additionally, specialized training is conducted for mid-level managers and above to enhance their understanding
and promotion of the construction and implementation of the information security management system, thereby reducing the risk of er-
rors, fraud, and data leakage at the source.
Coordinate the handling of informa-
tion security incidents
During the reporting period, we obtained ISO/IEC 27001 certification. Leveraging the “PDCA” (Plan–Do–Check–Act) model—combined
with internal audits, third-party assessments, and vulnerability scanning—we continuously optimize our information security processes,
proactively identify and mitigate potential risks, and provide a robust foundation for stable and sustainable business development.
Information security management objectives
Information security management objectives
status
Information Security Training and Awareness
To maximize the protection of the integrity, confidentiality, and
availability of information systems from damage.
Key Performance
Achieved
To ensure the occurrence frequency of major information security
incidents (Level II) is minimized within a controllable range, with
a target of "0" incidents per year.
Information Security Management
During the reporting period, we had 0 confirmed data security incidents and 0 confirmed customer privacy breaches.
System Certification
Shanghai Huace Navigation Technology Ltd
Technology Leadership
Innovation-Driven Development
Identified R&D-Related Opportunities
Opportunity Opportunity Potential financial
Opportunity description Implementation measures
type nameRisk name benefits
CHC Navigation has always adhered to technological innovation as its core growth engine, committed to building a multi-dimensional Breakthroughs in high-preci- Growth in new product Increase R&D investment and
technology matrix and a global R&D network. Through the deep integration of international innovation resources, the development of a Technological Leadership in core
sion positioning and intelligent revenue and increased promote the rapid commercial-
professional talent pipeline, and the promotion of industry-academia-research collaboration, we have formed a full-chain innovation eco- innovation technologies
control technologies market share ization of results
system encompassing key technology breakthroughs, green product applications, and the commercialization of scientific and techno-
Products can be applied in
logical achievements. While pursuing technological excellence, we strictly abide by technology ethics, striving to achieve a harmonious Focus on industry application
Market expan- Emerging applica- emerging markets such as Growth in product
balance between technological progress and social responsibility. scenarios and develop custom-
sion tion fields smart cities, autonomous driv- sales revenue
ized solutions
ing, and unmanned systems
Governance Collaborate with universities
Establish joint laboratories and
Industry-academ- and research institutions on key Reduced R&D costs
Industry collab- research platforms to promote
We have built a three-catalog architecture based on the IPD system to clarify business layers and enhance product competitiveness and ia-research coop- projects to achieve technology and faster time-to-mar-
oration the integration of industry, aca-
technology platform capabilities. As the core technical force, our R&D department oversees multiple business units and specialized tech- eration sharing and commercialization ket
demia, and research
nical teams, covering key areas such as high-precision positioning, intelligent equipment, and spatio-temporal information. Concurrently, of results
through a model of product-driven development, platform support, and collaborative innovation among professional teams, we continu- Integrate green design con-
ously optimize R&D efficiency and coordination, supporting technological breakthroughs and industrial development. Energy-saving and Low-power consumption and
Enhanced brand value cepts into product development
Green R&D eco-friendly tech- eco-friendly designs enhance
and policy support and strive for certifications and
nologies product competitiveness
Strategy awards
We have proposed an R&D strategy of "three core technologies and three platforms," driven by high-precision positioning technology.
Impact, Risk, and Opportunity Management
This strategy focuses on three key technological areas: positioning and navigation, perception and measurement, and intelligent control.
It aims to progressively build three foundational technological platforms: a chip platform, the Global Satellite-Ground Integrated Augmen- In the face of evolving industry technological changes, increasingly stringent environmental regulations, and global talent competition,
tation Service platform PointX, and an intelligent control platform. The goal is to forge core competitiveness, drive continuous business we consistently integrate risk management and opportunity identification deep into our R&D and innovation system. We capture oppor-
innovation, and lay a solid foundation for our future development. tunities from the upgrading of the BeiDou industry through forward-looking technological positioning, mitigate risks from technological
iteration by relying on our deep R&D talent pipeline, and incorporate green and ethical standards into product design. This ensures that
In the process of advancing technological innovation and implementing our R&D strategy, we have identified potential risks that could while technological innovation drives business growth, it also creates sustainable social value.
affect R&D efficiency, technological breakthroughs, and the commercialization of results. We also focus on the market and technological
opportunities that innovation brings. To ensure the steady progress of R&D activities, we regularly assess R&D-related risks and oppor-
Forward-Looking Technology Layout Technology Layout
tunities and formulate targeted countermeasures and strategic plans. This approach guarantees continuous technological innovation,
orderly project progression, and the achievement of sustainable development. As a leading enterprise in China's high-precision satellite navi-
gation and positioning industry, we focus on BeiDou high-preci-
Identified R&D-Related Risks sion spatio-temporal intelligent information and have proactively
Positioning Perception and Intelligent con-
established our presence in core technology areas including and navigation measurement trol technology
Risk type Risk name Risk description Potential financial impact Response measures positioning and navigation, perception and measurement, and technology technology
intelligent control.
The supply of core compo- Continuously improve sup-
Supply chain Stability of core nents may be affected by May have a certain impact on ply chain management and Core Technology Applications
risk component supply changes in the external envi- costs and delivery schedules promote diversified supply
ronment assurance We specialize in the research, development, manufacturing of related products, and industrial application of positioning and navigation,
perception and measurement, and intelligent control technologies. Our core technologies are widely applied in mature industries such
Technological development Establish compliance assess-
Technical stand- May lead to compliance in- as surveying and mapping and natural resources, as well as in emerging fields like smart cities, autonomous driving, and artificial in-
Regulatory may face updates to stand- ment processes and closely
ards and compli- vestments or project adjust- telligence. Currently, we have established four major application segments, including Agricultural Machinery Navigation and Robotics,
risk ards or regulatory require- monitor policies and regula-
ance ment needs Geospatial Information and Spatio-temporal Intelligence, Smart and Digital Construction, as well as Spatio-temporal Perception and Po-
ments tions
sitioning Services to provide comprehensive products and solutions.
Establish a multi-level talent
The turnover of R&D talent
Talent risk
Stability of the R&D
may have a certain impact on
May have a certain impact on pipeline and improve incen- R&D Team Building
talent team R&D progress and efficiency tive and development mecha-
project progress We have built a high-caliber R&D team of 879 professionals, with doctoral and master's degree holders forming our core. Our profes-
nisms
sional backgrounds cover multiple cutting-edge fields, including satellite navigation, computer science and technology, and mechanical
Establish a project manage-
There may be challenges in May have a certain impact engineering. With deep technological expertise and an innovative spirit, our team is internationally competitive in its respective fields,
R&D manage- R&D project man- ment system, unify R&D pro-
collaboration and manage- on the efficiency of resource ensuring our sustained competitive advantage in technological iteration and product development. In terms of talent cultivation, we im-
ment risk agement cesses, and conduct regular
ment allocation plement a special training program for distinguished engineers, pilot reforms in engineering doctoral and master's degree programs, and
progress reviews
have established a multi-level talent development pipeline supported by our R&D talent development plan.
Shanghai Huace Navigation Technology Ltd
Technology Leadership
Industry-Academia-Research Cooperation
Indicators and Targets Key Performance
We collaborate closely with universities and research institutions, having established a postdoctoral research workstation and an aca- During the reporting period, our R&D expenditure
Through continuous R&D investment and technological innova-
demician and expert workstation to build an integrated industry-academia-research platform that promotes the commercialization of ac-
ademic achievements and technological innovation. We actively foster university-enterprise cooperation, establishing joint training pro-
tion, we constantly enhance our core technical capabilities and
product competitiveness, striving to maintain a leading domestic
totaled about RMB557.997 million ,
grams with top domestic universities such as Shanghai Jiao Tong University, Tongji University, and Beijing Jiaotong University, and have
enrolled several cohorts of engineering master's and doctoral students. We, along with the students and their academic supervisors,
position and approach advanced international standards in the representing 15.08% of operating revenue.
fields of high-precision navigation, intelligent equipment, and
jointly select project topics before the students' internships. Students are co-supervised by university professors and corporate mentors
spatio-temporal information. Our R&D activities are geared
to complete their projects, ensuring that their professional expertise and practical skills are highly aligned with our needs.
toward promoting the commercialization of scientific and tech-
nological achievements, broadening, and deepening the ap-
We have 879 R&D personnel, representing
In 2025, our university-enterprise cooperation was further deepened and solidified. We actively participated in the Shanghai Science
and Technology Commission's Explorer Program, collaborating with universities such as Tongji University, Shanghai Jiao Tong Universi- plication of our technologies, and advancing green design and 38%
approximately of the total number of
ty, East China Normal University, and Shanghai Ocean University to conduct basic research on common industry challenges, including sustainable development—thereby providing solid support for employees.
geological deformation monitoring, low-orbit integrated positioning, and perception in unstructured environments. In terms of commer- our long-term business growth.
cializing industry-academia-research achievements, we have utilized horizontal project commissioning to target key R&D areas such
as high-precision inertial navigation algorithms and multi-source trustworthy PNT. This approach effectively reduces R&D costs while
enabling the efficient industrialization of university technologies. Honors Related to Innovative R&D
Integration of International Resources
In February 2025, we won the First Prize of the China Railway Shanghai Group
Co., Ltd. Science and Technology Progress Award for the research on a defor-
We are simultaneously advancing our international R&D layout by establishing an R&D center in the United Kingdom, which focuses
mation monitoring system for high-speed railway station canopy roofs based on
on GNSS technology innovation. The center maintains close collaborations with top UK universities, dedicating its efforts to develop-
positioning technology
ing efficient and innovative GNSS solutions to continuously enhance positioning accuracy and reliability. With data analysis at its core,
our R&D work constantly optimizes positioning algorithms and technological applications, providing advanced and reliable support for
high-precision positioning.
In April 2025, we won the First Prize of the Disaster Prevention Science and
Technology Award (Innovation and Application Award) for key technologies for
Green Design Philosophy
rapid closure of large levee breaches and their application in the Tuanzhouyuan
emergency response
We are committed to integrating a green design philosophy into
our entire product lifecycle management, viewing it as a core
consideration in R&D and innovation. During the design and
production stages, we strictly select environmentally friendly
raw materials that comply with RoHS standards to ensure all
our products are non-hazardous, thereby minimizing negative In September 2025, our Shoujing Z8 Radar-Vision Fusion Multi-Point Displace-
environmental impact from the source. Furthermore, we actively ment Monitoring Instrument won the "CIIF High-Tech Engineering Award".
promote the deep integration of technological innovation and
environmental standards. Several of our products have been
certified by authoritative bodies and have received environmen-
tal certificates, achieving a synergistic development of business
performance and ecological protection. China Environmental Labelling (Type II) Product Certification
In November 2025, a technological achievement of we were selected for the
nologies for Promotion
Adherence to Technology Ethics
We strictly adhere to tech ethics and ethical standards throughout the entire R&D lifecycle, committed to providing global users with
In December 2025, the projects "Key Technologies and Applications for the
safe and reliable solutions for precise spatial information perception and navigation. Our core research currently focuses on robotics
National Geological Disaster Monitoring and Early Warning System" and "Key
and autonomous driving, with a priority on industrial applications in closed or semi-closed operational scenarios. Leveraging artificial
Technologies for BDS/GNSS All-Frequency High-Precision Positioning and De-
intelligence models, we conduct in-depth innovative research on autonomous driving algorithms and high-precision non-contact
velopment of Domestic Equipment", in which we participated, both received the
measurement technologies, aiming to significantly enhance industry productivity through intelligent means. Throughout the technological
First Prize of the Natural Resources Science and Technology Progress Award
iteration process, we consistently uphold the principle of "technology for good." Our current research scope is strictly confined to non-
sensitive decision-making areas and does not involve ethical risks related to human safety decisions or highly sensitive human-computer
interactions, ensuring a harmonious coexistence between technological development and human value systems.
Shanghai Huace Navigation Technology Ltd
Technology Leadership
Intellectual Property Protection Timely Incentives for the R&D Center
We have established a timely incentive program for our R&D Center. This program covers multiple dimensions, including quality re-
We place great importance on intellectual property management, considering it a crucial wards, value-based demand rewards, knowledge contribution awards, and process optimization awards. We select and reward out-
component of our innovation-driven strategy and core competitiveness. To safeguard our standing employees on a quarterly basis to motivate our R&D team to achieve continuous improvement.
technological achievements, we have established a systematic intellectual property manage-
ment system, which, combined with incentive mechanisms, training, and awareness activi- R&D Center Timely Incentive Program
ties, encourages our R&D team to innovate continuously and strengthens their awareness of
Quarterly star Value-based Quality timely Experience/skill Knowledge con- Process optimiza-
confidentiality. During the reporting period, we obtained certification for our Intellectual Prop- demand reward incentive sharing tribution award tion award
erty Compliance Management System.
Intellectual Property Compliance Outstanding per- Rewards for the Significant achieve- Effective sharing Outstanding teams Proposing and
Management System Certification
formers are select- top 3 employees ments in quality & through technology or individuals in implementing
Key Honors ed each quarter whose proposed efficiency improve- exchange meet- the development process improve-
demands are ad- ments ings, skills training, of departmental ments with signifi-
opted Proper application etc. knowledge bases cant results
In October 2025, we won the 5th Shanghai Intellectual Property Innovation Award of engineering
tools/methods
Consolidation of
improvement out-
comes
Full participation
Intellectual Property Training and Awareness
Shanghai Intellectual Property We regularly organize intellectual property training and awareness activities—including systematic training sessions, online quizzes, and
Innovation Award (Creation) an IP Month campaign—to enhance all employees’ legal awareness and ability to protect innovative achievements.
R&D Incentive System
To stimulate the enthusiasm and creativity of our R&D personnel, we have developed a comprehensive, multi-level incentive matrix that
covers everything from output results to process contributions. This system is designed to enhance our ability to attract and retain top-ti-
er technology talent.
Intellectual Property Incentives
We have formulated the Intellectual Property Reward Management Measures to provide differentiated rewards for achievements such
as software copyrights, invention patents, and academic papers. This initiative aims to stimulate the innovative drive of our R&D person-
nel, ensure a continuous output of intellectual property, and promote technological innovation and our long-term development.
General Principles of Intellectual Property Incentives
We provide cash rewards Intellectual property At the end of each year, If any employee misappropriates Poster for the IP Month Campaign Intellectual Property Training
to employees who actively achievements serve as we conduct an award eval- a service invention for personal
participate in intellectual an important basis for uation for the intellectual gain, we will pursue legal action
Key Performance
property applications and technical title evalua- property achievements of against the responsible individu-
achieve corresponding re-
sults
tions, job appointments,
promotions, and other
the year, recognizing and
rewarding departments and
al and seek economic compen-
sation in accordance with the
During the reporting period, we conducted 3 intellectual property-related training sessions, covering approximately
rewards individuals who have ex-
celled in meeting IP targets
losses incurred by us
Shanghai Huace Navigation Technology Ltd
Technology Leadership
Product Quality We regard quality as the lifeblood of the enterprise; it is the cornerstone of our value
proposition and brand image, as well as the foundation for building long-term and
important customer relationships and loyalty.
We have always regarded quality as our lifeline and brand promise, committed to providing customers with stable, reliable, and
high-performance products and services. Through a comprehensive governance system, a clear quality strategy, strict management We create high-quality products, center on the end-user experience, and build qual-
mechanisms, and continuous employee training, we consistently optimize our quality control processes and management practices. ity in terms of results, processes, and business reputation across four dimensions:
We promote full employee participation and continuous improvement, ensuring product quality from system to execution and thereby systems, products, components, and processes.
strengthening customer trust and corporate competitiveness.
We foster a quality culture that respects rules and processes, gets things right the
first time, and pursues continuous improvement.
Governance We accurately convey customer requirements and expectations to partners and
manage them effectively, building high quality and sustainable development through-
Guided by the philosophy of "Making CHC Navigation a Trustworthy Organiza- out the value chain.
tion and Its Products Synonymous with High Quality", we have established a Quality Strategy
comprehensive quality governance system. By formulating a series of policies,
We respect professionalism, advocate for craftsmanship, and build world-class ex-
including the Nonconforming Product Control Procedure and the Product Pro-
pert teams in all fields.
tection Control Specification, we have provided a solid institutional foundation
for quality control. In terms of governance structure, the Quality Committee
serves as the highest decision-making body, responsible for approving quality Everyone pursues quality in their work, refusing to create, pass on, or accept work
policies, setting objectives, reviewing major improvement projects, and deter- outputs that do not meet requirements; no cover-ups, no shirking responsibility, no
mining the classification and accountability for quality issues, ensuring that falsification, and a commitment to fact-based decision-making and problem-solving.
quality management decisions are both scientific and efficient. We strictly im-
plement primary quality responsibility, designating business heads as the first
We implement managers' primary responsibility for quality, build a quality assurance
persons responsible for quality, thereby driving a quality-first mindset among
system based on processes, and establish a comprehensive quality management
all employees and creating a top-down closed loop of accountability. During Quality-Related Management System Certification
system adaptable to future development.
the reporting period, we obtained ISO 9001 Quality Management System cer-
tification.
In advancing our quality strategy, we have fully identified potential risks and development opportunities, addressing and managing them
Strategy through systems, processes, and management mechanisms to support our sustained, high-quality development.
Identified product quality-related risks
We adhere to the philosophy of "Making CHC Navigation a Trustworthy Organization and Its Products Synonymous with High Quality,"
viewing quality as the cornerstone of our survival and the core reason customers choose us. We are committed to communicating cus- Potential financial
Risk type Risk name Risk description Response measures
tomer quality requirements and expectations throughout the entire value chain, driving quality improvement across all personnel and impac
processes to ensure the high quality and sustainable development of our products and services.
Strict supplier manage-
Inconsistent product quality
May lead to increased ment and evaluation;
Supply chain quality from suppliers or subcontrac-
Operational risks repair costs and affect establish a full-life-cycle
fluctuations tors may affect final product
customer satisfaction quality control mecha-
quality
nism
Regularly monitor chang-
National or industry quality
es in standards and
Changes in regula- standards may be updated, May increase compli-
Compliance risks regulations and promptly
tions and standards requiring adjustments to ex- ance costs
update internal systems
isting processes
and processes
Discrepancies may exist in Conduct regular training
May lead to an increase
Inconsistent quality how employees operate or and assessments to
Execution risks in the non-conformance
awareness managers execute standard strengthen quality re-
rate of products
processes sponsibility awareness
Shanghai Huace Navigation Technology Ltd
Technology Leadership
Identified Product Quality-Related Opportunities Emergency Response Mechanism for Quality Issue
Opportunity type Opportunity name Opportunity description Potential benefits Measures and practices
We have established a rapid response mechanism to address emergency quality issues, ensuring that customer needs are met prompt-
ly. Through standardized processes and optimized handling solutions, we can efficiently identify and manage potential quality anomalies,
Focus on areas such as Increase R&D invest-
High-value-added Enhance product reducing risk impacts and enhancing customer satisfaction and brand trust.
Technological high-precision navigation, ment and strengthen
product develop- competitiveness and
innovation intelligent equipment, and cross-departmental col-
ment market share
green design laborative innovation Our Urgent Issue Resolution Process
Improve the quality
Communication & Communication & De-
High-quality products and Increase customer management system Decision-making cision-making
Enhancement of
Step 1
Brand building services build customer loyalty and repeat and continuously op-
quality reputation
trust and brand reputation purchase rates timize the customer PM Department Manager PQA Leader
experience
Continuously optimize
Reduce quality manage- Communication & De-
Improve operational processes and assess-
Management Process standardi- ment risks through institu-
efficiency and re- ment mechanisms to Step 2 R&D Director
cision-making
Quality Director
optimization zation tionalized and standardized
duce quality costs promote full-staff partic-
processes
ipation
Establish joint labo- Step 3 PMT Leader
Industry-academ- Jointly develop new tech- Accelerate technol- ratories and research
Cooperation
ia-research collabo- nologies with universities ogy transfer and workstations to promote
opportunities
ration and research institutions industrial application the implementation of
research outcomes
Enhancing Quality Awareness
Impact, Risk, and Opportunity Management To promote risk prevention and continuous improvement, we conduct systematic quality training and cultural development activities—
including Quality Month campaigns, seminars, and on-site inspections—covering all aspects of design, production, and management.
Through these training and awareness initiatives, we have effectively enhanced the quality consciousness of all employees, empowering
To effectively address potential product quality-related risks and seize development opportunities brought by quality management, we them to proactively identify risks, comply with standards, and pursue continuous improvement in their daily work.
have established a systematic risk and opportunity management mechanism, achieving comprehensive management through systems,
processes, and cultural development.
Indicators and Targets
Assessment and Management System
Centered on enhancing quality leadership, we have built a stringent quality assessment and management system. We implement quality We adhere to the quality objective of “Making CHC Navigation Synonymous with High Quality in the Geospatial Information and Survey-
redline requirements to ensure full participation and continuous improvement. By clarifying quality management responsibilities, we have ing Industry.” To fulfill this commitment, we ensure that our products consistently meet design specifications and customer requirements
established a comprehensive assessment mechanism covering all segments to ensure that both products and processes meet high through rigorous quality control across all processes and stages. Toward this end, we continuously optimize our product quality manage-
standards. ment processes, implementing full life-cycle management of materials and stringent control over key production stages.
"Primary Responsible Person" Assessment Mechanism Key Performance
To ensure that quality management responsibilities are fully implemented, we designate business heads as the "primary responsible During the reporting period, we successfully implemented 611 quality assurance plans, which significantly improved
person for quality," directly linking quality outcomes to managerial performance. If product repair rates or customer satisfaction levels fail product qualification rates, mitigated potential quality risks, and reinforced our commitment to high-quality development
to meet targets due to inadequate management, accountability will be pursued in accordance with the system. This mechanism creates and continuous enhancement of customer satisfaction.
a top-down closed-loop of responsibility, strengthening quality and risk prevention awareness among all employees.
During the reporting period, we conducted quality assessments covering 2 key quality indicators, both of which were met,
achieving a target completion rate of 100% .
Shanghai Huace Navigation Technology Ltd
Synergistic Collaboration
Customer Rights and Interests
We remain steadfastly customer-centered, leveraging the unique characteristics of the high-precision spatio-temporal information indus-
try to deeply integrate customer needs with real-world application scenarios. By doing so, we are committed to delivering professional,
precise spatio-temporal information solutions and services to global customers—continuously creating long-term value and driving
meaningful outcomes across diverse industries.
Governance
We are committed to compliant operations as the foundation of our daily business and
strive to enhance customer satisfaction. We strictly adhere to relevant laws and regula-
tions, including the Law of the People's Republic of China on the Protection of Consum-
er Rights and Interests, and have established the CHC Navigation After-Sales Service
Policy. This policy clearly defines the standards and procedures for after-sales service,
ensuring the protection of customers’ legal rights—such as the “Three Guarantees”
(repair, replacement, and return), technical support, and complaint handling—thereby
fostering a transparent, trustworthy, and highly responsive service ecosystem.
We have established an after-sales service management structure with clearly defined
responsibilities and efficient cross-functional collaboration, forming a closed-loop man-
agement system that integrates “coordination by functional departments + multi-level
execution + full-process supervision.” At the service network level, we have set up
service outlets covering all provinces across China and established strategic service
centers in key overseas markets, creating a global service network characterized by
“comprehensive domestic coverage + targeted international presence.” This ensures
that customers—wherever they are located—receive timely, professional, and reliable Service Certification
service support.
After-Sales Service Policy, Goal, and Corporate Spirit
Service Policy
Quality First, Integrity Always, Service Above All
Service Objectives Corporate Spirit
Prompt Response, Professional Customer-centered, Practical, and
Service, Comprehensive Solutions, Enterprising
Customer Satisfaction
Shanghai Huace Navigation Technology Ltd
Synergistic Collaboration
Strategy Impact, Risk, and Opportunity Management
By ensuring accessible complaint channels, conducting satisfaction surveys, and standardizing investigation procedures, we effectively
We adhere to the after-sales service policy of “Quality First, Integrity Always, Service Above All” and embody the corporate spirit of being manage operational risks arising from service deviations and mismatched demands. We also precisely capture development opportu-
“Customer-centered, Practical, and Enterprising” to fully protect customer rights and interests from harm. To continuously enhance cus- nities from potential customer needs. While safeguarding customers' legitimate rights and enhancing their service experience, this ap-
tomer service quality and safeguard customer rights, we have identified risks at a strategic level that could impact customer experience proach provides precise guidance for our product iteration and service upgrades.
and service effectiveness, while also capturing potential opportunities for improvement and development.
Customers’ After-Sales Service Rights
List of Risks
To ensure the quality of customer service, we have established a comprehensive after-sales service process, which is mainly divided into three
Potential financial
Risk type Risk name Risk description Response measures key stages: request intake, professional handling, and service closure. Through the synergistic linkage of three major data modules—customer
impact
profiles, work order data, and a case library—we have built a highly efficient service system to comprehensively enhance customer satisfaction
Establish a closed-loop process of “Acceptance–
Risk of Untimely handling of cus- with their after-sales service experience.
Verification–Resolution–Improvement” and im-
customer tomer complaints or ser- May affect customer
Customer plement accountability and service improvement After-Sales Service Process Flowchart
complaints vice responses may affect satisfaction and ser-
service risks measures; regularly analyze complaint hotspots
and response customer experience and vice efficiency Acceptance Resolution Close
to optimize service processes and product fea-
delays satisfaction
tures 400 Create Service
hotline work authenti- R&D lifecycle management team (Tier 3)
Risk of Failure to promptly identi- inquiry order cation
May affect service Promptly identify potential customer needs Technical support expert (Tier 2) Service team leader
inadequately fy new customer needs or
Needs identi- alignment and the through annual satisfaction surveys, regular WeChat official
capturing market changes may lead Technical service engineer (Tier 1)
fication risk utilization of custom- follow-up visits, and data analysis to provide account Issue level
customer to delays in product and definition
er feedback data support for product iteration Technological upgrade
needs service iteration Official website
Cus-
tomer Fol-
online inquiry Review Close
evalu- low-up
Risk of Lack of operation training Tech-
Fault
Imple- Cus-
May lead to delays Provide online/offline technical training during Accept nical De- ment tomer ation
insufficient for customers in equip- Corporate Dispatch
order verifi-
diag-
velop solu- confir-
Technical in problem resolu- the delivery phase and within the warranty pe- Cus- nosis Cus-
customer ment use may affect the WeChat inquiry cation tion mation
training risk tom- tom-
tion during the ser- riod, update operation guides, and establish a
operation stable operation of the ers Maintenance ers
vice process case library and knowledge base for support System self- Customer confirmation Technical service engineer
training equipment check engineer
Spare parts requisition, Warehouse
Employee return, and write-off keeper
channel
List of Opportunities Third-party handling Third-party
Technical service engineer Field service
On-site service
Opportunity Opportunity engineer
Opportunity description Potential benefits Potential benefits
type name
Record, analyze,
Voice channel Improvement Close
Enhance customer experience Improve the after-sales service process, feedback
Customer Customer satis- Can promote customer
through an efficient after-sales establish a work order data and case Customer profile
experience faction enhance- satisfaction and partner-
service system and continuous library, and continuously optimize the
enhancement ment opportunity ship loyalty Work order data
training customer experience
Case library
Customer feedback and com- Regularly analyze complaint data and
Opportunities for Contributes to product
Product itera- plaint data can provide guid- follow-up information to formulate prod-
product upgrade and service improve-
tion ance for product optimization uct improvement and service optimiza-
and optimization ment Acceptance Stage Resolution Stage Closing Stage
and service upgrades tion plans
Customers report issues Technical service engineers attempt to resolve the The issue is closed, which
Customer satisfaction data and Establish customer profiles and a data through various channels customer's issue through four steps: technical ver- includes evaluation, fol-
Data-supported
work order data can support Supports operational analysis system to support scientific Technical service engi- ification, fault localization, solution development, low-up, review, and clo-
Data-driven management op-
quantitative management and efficiency improvement decision-making and process optimiza- neers create a work order and solution implementation, then submit it for cus- sure
portunities
decision-making optimization tion based on the customer's tomer confirmation Confirm whether the cus-
issue, authenticate the If the technical service engineer cannot resolve the tomer is satisfied with the
Establish national and overseas ser- problem, and define its issue, a technical escalation process is initiated to resolution
Opportunities for High-quality customer service Can enhance corporate
Brand and vice outlets to ensure service timeli- severity level involve technical experts and R&D for a collabo-
brand and market and responsiveness can en- reputation and market
market ness and standardization, and to show- rative solution.If on-site service is required, a field
expansion hance our market recognition recognition
case professional capabilities service engineer is dispatched
Shanghai Huace Navigation Technology Ltd
Synergistic Collaboration
We ensure the protection of customer after-sales rights and interests by strictly adhering to all specifications of our after-sales service Customer Satisfaction Management
system. All customers who purchase our products are legally entitled to the “Three Guarantees” (repair, replacement, and return) for
products. If a product exhibits quality issues, customers may apply for a return, replacement, or repair service within the specified period.
We have a professional after-sales service team dedicated to ensuring that all customer requests receive timely and effective responses To accurately capture customer needs, we have established a comprehensive customer satisfaction survey system. Since 2020, we
and resolutions. In addition, customers are entitled to comprehensive technical training: during product delivery, we provide one-time have commissioned a professionally qualified third-party organization to conduct annual satisfaction surveys for six consecutive years,
free online or on-site technical training for personnel designated in the contract, helping them quickly become familiar with instrument ensuring the objectivity and authority of the data from a neutral perspective. This is supplemented by a year-round regular follow-up
functions and master key operational procedures. Throughout the warranty period, customers may also participate in complimentary mechanism, including follow-ups after 400 hotline complaints and periodic visits by product line business personnel, to comprehensively
online technical training sessions to reinforce and enhance their operational skills—ensuring the long-term, stable, and efficient perfor- track changes in customer perceptions during product use and service experiences. By collecting customer opinions and feedback, we
mance of their equipment. conduct in-depth analysis of the core factors affecting customer satisfaction, providing solid data support for product iteration and ser-
vice upgrades.
Letters of Appreciation from Customers
Customer "Three Guarantees" Rights
Seven-day free Within 7 calendar days from the start of the warranty period, if the main unit of the product experiences a May 23, 2025 June 6, 2025 August 12, 2025
return, replacement, non-human-induced performance failure, customers may choose to have it repaired, replaced with a prod-
and repair
uct of the same model, or arrange for a return after verification by our technical personnel.
Nanning Emergency Manage- Zhengzhou Flood and Drought Baoding Hydrological Survey
ment Bureau "Emergency Mis- Control Headquarters Office and Research Center of Hebei
sion · 2025" -- Typhoon Preven- "Emergency Mission - 2025" Province, Baoding Hydrological
Within 15 calendar days from the start of the warranty period, if the product experiences any of the follow- tion and Response Drill Henan Flood Control Emergency Emergency Monitoring Work
ing issues, customers may choose to replace it with a product of the same model and specifications: Comprehensive Drill
Fifteen-day free ① The main unit of the product experiences a non-human-induced performance failure;
② The product is found to be damaged during transportation, and proof of damage from the shipping
replacement and company can be provided;
repair ③ The product is found to have significant discrepancies in one or more important aspects from its origi-
nal description.
Repair
During the warranty period, if the main unit of the product experiences a non-human-induced performance
failure, customers are entitled to free repair services.
Indicators and Targets
We adhere to the principle of "Quantitative Management and
Customer Satisfaction Survey Objectives
Continuous Improvement," setting clear and measurable indica-
Customer Complaint Channels tors and development goals around customer satisfaction and
after-sales service response efficiency to ensure that service
A comprehensive assessment of our product ca-
optimization is directional, standardized, and effective.
We have established a dedicated service hotline, 400- pabilities, quality levels, technical services, and af-
concerns are quickly directed to the appropriate point Key Performance
of contact. For each complaint, a management process
of "Acceptance-Verification-Resolution-Improvement" is During the reporting period, our overall customer Improve product quality control and management,
established to ensure proper responses. The responsible
parties are held accountable in strict accordance with satisfaction rate was 76.5% , an increase of
enhance customer perception, and elevate corporate
image
our regulations. Additionally, complaint data serves as a
crucial basis for service optimization. We regularly ana- 1.6% compared to 2024, marking the fifth con-
lyze complaint hotspots and common issues to formulate secutive year of improvement. Customer satisfaction
targeted measures for process improvement and product
optimization, fostering a virtuous cycle of "improvement
was rated"Good", while loyalty and NPS remained
Evaluate employee performance
through complaints," continuously reducing service risks, at an "Excellent" level.
and strengthening customer trust.
Shanghai Huace Navigation Technology Ltd
Synergistic Collaboration
Supply Chain Security
We attach great importance to standardized supply chain management and risk control. By establishing a supplier access and evalua- List of Risks
tion mechanism, strengthening process supervision and collaborative management, we promote the stable operation and sustainable
development of the supply chain. Potential financial im-
Risk type Risk name Risk description Response measures
pact
Inadequate Discrepancies in the compli- Strengthen supplier access,
Governance Supplier compli-
supplier qual- ance or management of core May increase operational regular reviews, and training
ifications or suppliers may limit cooper- management costs or cause to ensure suppliers continu-
ance risk
operational ation efficiency or service supply delays ously meet Company stan-
management consistency dards
We have established a comprehensive supplier access and exit system based on the Supplier Management System. During the access
process, the compliance qualifications, management system, and manufacturing capabilities of suppliers are evaluated to ensure the
Non-standard information Sign unified confidentiality
compliance and quality of the supplier team. Inadequate
management by suppliers and transparent procurement
Information supplier data or Potential contract disputes or
during cooperation may agreements to strengthen
security risk contract man- information disclosure risks
Supplier Access Management affect data security and con- information management
agement
tract execution standards
Conduct regular technical
Inconsistent Differences in technical or
Supply chain certification, training, and
supplier skills or quality levels may affect May affect product quality or
collaboration quality monitoring, and
quality stan- overall supply chain collabo- service levels
risk establish feedback and im-
Development Process capabili- Delivery capabili- Quality assur- Service & flexibili- dards ration
provement mechanisms
capability ties ty ance ty
Possesses project Core processes cannot be Guarantee on-time deliv- Has a sound quality Timely Response
development capabil- outsourced ery rate architecture
ities
Mastering advanced indus- Adaptable to small Has a complete quality
batches and multiple
try processes system List of Opportunities
varieties
Opportunity Opportunity Measures and prac-
Strategy type name
Opportunity description Potential benefits
tices
Provide regular training and
Supplier capabil- Improve supplier technical and Improve supply chain collab-
We improve supplier capabilities and optimize processes by enhancing our supplier access, training, and performance management Improved supply technical guidance, and
ity enhancement management levels through oration, and enhance delivery
chain efficiency establish assessment and
mechanisms, thereby achieving supply chain stability and efficient collaboration while ensuring fair cooperation and compliant opera- opportunity training and capacity building timeliness and product quality
incentive mechanisms
tions. To further ensure supply chain stability and compliant operations, we have identified risks at the strategic level that could affect
supply chain management, while also capturing potential opportunities for improvement and collaborative development. The following
table outlines the main risks and opportunities, along with corresponding response measures and potential benefits, to support the con-
tinuous optimization of the supply chain management system. Implement an information
Supply chain Supply chain col- Enhance overall supply chain Reduce operating costs and
management platform to
innovation and laboration optimi- efficiency through information improve supply chain respon-
achieve end-to-end supply
collaboration zation opportunity sharing and process optimization siveness
chain visibility
Transparent Fair procurement and compli- Sign transparent procure-
Sustainability Enhance our brand image and
procurement and ance management enhance ment agreements, and
and compliance increase supplier trust and will-
social responsibil- corporate social responsibility strengthen anti-corruption
opportunity ingness to cooperate
ity opportunity performance and contract management
Establish payment systems
Opportunity to
and regulatory processes
Opportunity to support the devel- Build a stable supply chain
Pay accounts payable on sched- to ensure the protection of
support micro and opment of small ecosystem and enhance supply
ule and provide fair opportunities the rights and interests of
small enterprises and medium-sized chain resilience
small and medium-sized
enterprises
enterprises
Shanghai Huace Navigation Technology Ltd
Synergistic Collaboration
Impact, Risk, and Opportunity Management Industry Co-development
Supplier Capacity Building We have always adhered to the concept of openness and win-win cooperation, actively fulfilling the social responsibility of a leading en-
terprise through technology sharing, industry exchanges, and educational support, and are committed to building a collaborative devel-
We regularly conduct specialized training for core suppliers on technical certification, quality control, and compliance operations. The opment ecosystem for the global geographic information industry.
training covers key content such as technical practice and the application of quality management systems. Through a combination of
theoretical explanation and practical exercises, we help suppliers solidify their skills and optimize their production processes. At the
same time, we have established a training effectiveness evaluation and feedback mechanism to promote technical collaboration and ca- Expanding Global Technological Horizons
pability building between the supply and demand sides, achieving co-creation of supply chain value.
Through deep global engagement, we showcase China’s high-precision technology solutions to the world. We actively participate
Transparent Procurement
in international exhibitions, engaging with global peers to discuss cutting-edge trends in surveying, agriculture, and digital con-
struction. These global showcases and exchanges have not only enhanced our brand visibility but also significantly strengthened
We implement a transparent procurement mechanism, requiring partners to sign the Transparent Procurement Agreement and the Con- the international influence of high-precision positioning technology in the geospatial sector.
fidentiality Agreement. We regulate procurement behavior and prevent integrity risks through standardized bidding processes and an
anti-corruption supervision system. Adhering to the principles of fairness and impartiality, we treat all partners equally, especially SMEs,
strictly abide by contractual agreements, promptly settle accounts payable, and eliminate overdue payments. This provides SMEs with Case Study: Showcasing Value-Chain Achievements at Professional Exhibitions
fair competitive opportunities, reduces supply chain cooperation risks, expands high-quality cooperative resources, and achieves sus-
tainable supply chain development.
In 2025, CHC Navigation, as a core enterprise repre-
senting the low-altitude industry chain, showcased its
products at the International Low-Altitude Economy
Indicators and Targets Expo. In the Qingpu exhibition area, we highlighted
our terminal equipment and intelligent manufacturing
achievements. This participation effectively enhanced
our brand awareness and industry influence in the
We set quantitative indicators and development goals around the core aspects of supplier management to continuously improve low-altitude economy sector, demonstrated our tech-
nological capabilities and integrated product solutions,
the efficiency of supply chain management and ensure the stable operation and sustainable development of the supply chain.
and laid a solid foundation for future market expansion
and strategic collaboration. Promotional Image for the International Low-Altitude
Economy Expo
Case Study: Debuting at INTERGEO 2025, Launching a Next-Generation Flagship Product
Achieve 100% signing rate of transparent procurement agreements, with no ma-
jor cases of commercial bribery or unfair competition
Achieved In October 2025, we showcased our comprehensive intelligent equipment for "sky, ground, water, and engineering" scenari-
Accounts payable to SMEs were settled in a timely manner, with no overdue pay- os at INTERGEO 2025 in Frankfurt, Germany. We presented our newly released Wujie Zhenwei RTK, the new 3D cloud ser-
ment incidents vice platform CoCloud, and the Global Satellite-Ground Integrated Augmentation Service platform PointX at the exhibition.
Through interactive experiences, we attracted numerous international visitors who stopped by to exchange ideas and try
out our products. The measurement accuracy and reliability of our equipment received widespread recognition, successfully
demonstrating our technological innovation capabilities and high-end product competitiveness to the global market, and sig-
nificantly enhancing our brand influence in the international professional field.
Key Performance
During the reporting period, we established or maintained stable and mutually beneficial cooperative relationships with
more than 600 suppliers, adding more than 40 new suppliers.
INTERGEO 2025
Shanghai Huace Navigation Technology Ltd
Synergistic Collaboration
Building Consensus on Industry Innovation
During the reporting period, we actively participated in major industry events across numerous countries and regions worldwide,
deepening international technical exchanges:
April 2025: Bauma 2025, Germany
We adhere to an open technology platform, actively host high-level exchange activities organized by industry associations, and
participate in emergency rescue and disaster relief efforts, contributing to the development of industry standards and the pro-
tection of public safety. Through close collaboration with industry associations and research institutions, we share our practical
experience in building digital infrastructure to help foster industry consensus. At the same time, we respond swiftly in the face of
extreme disasters, providing critical data support through our specialized equipment.
Case Study: China Association for Geospatial Industry and Sciences’ Real-Scene 3D City
Working Committee Organizes Member Units to Visit Shanghai
In April 2025, the Real-Scene 3D City Working Committee of the China Association for Geospatial Industry and Sciences
organized a visit for several member units to CHC Navigation. Experts from authoritative organizations, including the Shang-
hai Surveying and Mapping Institute and the Qingdao Surveying and Mapping Institute, gathered at the CHC Navigation
Smart Industry Base. The representatives toured our exhibition hall, gaining a detailed understanding of the development
April 2025: FIG Working Week 2025, Australia journey of domestically produced high-precision positioning equipment, from summiting Mount Everest to empowering re-
al-scene 3D construction. Through discussions and exchanges, the parties explored collaborative and innovative paths for
integrating high-precision positioning technology with real-scene 3D data. The aim is to provide more accurate, reliable, and
user-friendly geospatial information technology and services for the digital transformation of megacities through technologi-
cal optimization and iteration.
June 2025: CSPI-EXPO 2025, Japan
On-site Visit
Deepening the Industry-Education Integration Ecosystem
We recognize that talent is the driving force behind industry progress and are committed to cultivating future leaders for the
global surveying, mapping, and engineering fields through university–enterprise collaboration, equipment donations, and visiting
scholar programs. We actively support the digital transformation of higher and vocational education, bridging the gap between
classroom instruction and real-world practice through diverse hands-on projects. In doing so, we aim to build a strong pipeline of
November 2025: AGRITECHNICA 2025, Germany high-quality technical talent to ensure the sustainable development of our industry.
Top Students from the Surveying Competition
International Students from Beihang Academic Exchange with Imperial College
at the National University of Mongolia Visit
University Visit CHC Navigation London
CHC Navigation for a Study Tour
Shanghai Huace Navigation Technology Ltd
People-Oriented
Talent Attraction
Performance Management Measures
Adhering to a “talent-first” philosophy, we have developed the CHC Navigation Employee Handbook to govern the full employee lifecycle— Implement quarterly and annual PBC assessments and management, with all employees conducting
from recruitment and employment to the termination of labor contracts—in strict compliance with key Chinese laws and regulations, includ- performance reviews.
ing the Labor Law of the People’s Republic of China, the Contract Law of the People’s Republic of China, and the Social Insurance Law
Performance Adopt a top-down approach to break down our overall strategic goals, reinforcing the principle of goal
of the People’s Republic of China. Through a transparent and standardized recruitment system, we actively prevent fraud and eliminate alignment.
Goal Setting
discrimination, ensuring fairness and equal opportunity in hiring. We also uphold rigorous corporate social responsibility (CSR) standards
across our operations, explicitly prohibiting child labor in any form and firmly opposing forced labor, thereby safeguarding the rights of mi- Integrate job functions, Key Performance Indicators (KPIs), key events, team and individual development
goals, and values and behaviors to reinforce the principle of performance improvement orientation.
nors and upholding the lawful labor rights of all employees. We are committed to providing a fair, competitive, and inclusive employment
platform for talent from diverse backgrounds and educational levels—including bachelor’s, master’s, and doctoral degree holders, as well
as international and returning overseas professionals—fostering an open, respectful, and empowering workplace culture.
Encourage regular communication between supervisors and subordinates, track subordinates' goal
Key Performance achievement, and provide timely coaching and support for work-related issues.
As of the end of the reporting period, we had a total of 2,333 employees located across China and overseas.
Performance
Implementation
Encourage managers to conduct regular formal interviews with employees and record key points in
the OA system to support employee growth.
and Coaching
Among them, 64% held bachelor's degrees, and 27% held master's or doctoral degrees. Managers must provide performance coaching to new hires, promoted employees, or those in the
initial phase of inter-departmental transfers to help them adapt to the new environment and improve
work performance.
During the reporting period, more than 60 individuals obtained local household registration through various talent poli-
cies. As of the end of the reporting period, the cumulative number of employees who have obtained local household regis-
tration exceeded 300 .
Performance
Adhere to the principles of objectivity and fairness, conducting regular performance evaluations based
on multiple dimensions such as annual performance achievement and capability demonstration.
Evaluation and
Feedback The performance evaluation process includes an appeal mechanism, allowing employees to file an
Regulations Related to Recruitment and Employment
appeal if they have questions about their results, fully protecting employee rights.
Recruitment
principles
Personnel file Conditions Performance assessment results serve as an important reference for year-end bonuses, perfor-
and social
for non-re- Application and mance-based pay, timely incentives, special incentives, salary adjustments, awards, promotions,
insurance man-
agement cruitment Improvement job transfers, capability development, and dismissals.
of Assessment
Results Simultaneously, based on their performance evaluation results, employees are provided with sug-
gestions for improvement to support their growth and development.
Recruitment
Job content
procedures
Performance Management Measures
Onboarding
Employment of hired
conditions
candidates
Goal setting Performance execution and coaching
Probation
and conver- Signing of la-
bor contracts Departmental goal breakdown PBC refresh Routine coaching
sion to full-
time Key event record Mid-term review
Individual goal setting
Communicate and sign PBC
Remuneration Management System
We adhere to the management principle of "valuing dedicated contributors" and determine remuneration based on a comprehensive Performance feedback Performance appraisal
assessment of employee capabilities, job value, work performance, and conduct, with the CHC Navigation Performance Management
Feedback interview Collective review Employee self-assessment
Measures as our core. We implement comprehensive performance management through multi-cycle assessments (annual, semi-annual,
and quarterly) to ensure that remuneration is distributed scientifically and reasonably. At the same time, we have established a diversified Performance complaint Result announcement Direct manager evaluation
incentive system. Since our listing, we have actively implemented equity incentive plans and concurrently promoted measures such as
Result application
intellectual property incentives and timely incentives for the R&D Center. Differentiated rewards are given for innovative achievements like
software copyrights and invention patents, fully motivating employees and achieving mutual growth for individuals and us.
Shanghai Huace Navigation Technology Ltd
People-Oriented
Talent Development
We consider talent development as the core support for our sustainable development. By improving preferential policies for high-tech tal-
To consolidate the stability of our management and core technical team and continuously stimulate team effectiveness, we have for- ent, conducting regular performance surveys, and deepening university-enterprise cooperation to attract and develop talent, as well as
mulated a long-term incentive program for senior executives and core personnel. Since our listing, we have continuously implemented building a diversified employee training system, we provide comprehensive support for talent acquisition, cultivation, and development.
equity incentive plans to align the interests of our senior executives and core personnel with those of our shareholders, motivating the We continuously build a high-quality, professional, and innovative talent team, providing solid human resources and intellectual support
management and core employees to strive together for our long-term and healthy development. for our long-term, stable growth.
Governance
Key Performance
We have established and improved a preferential treatment governance system for high-level talent, providing special benefits such as
During the reporting period, we launched three new equity incentive plans: household registration support, housing subsidies, and research funding support for high-tech professionals, including PhDs and indus-
try-leading experts. We also offer application channels for talent programs like the "Oriental Talents Program" and the "Qingfeng Pro-
gram." Through clear policy provisions and standardized implementation procedures, we safeguard the legitimate rights and interests of
high-tech talent, fostering an institutional environment that respects talent and encourages innovation.
The 2025 Phase I Restricted Stock Incentive Plan (covering 24 people), the 2025 Phase II Restricted Stock Incentive
Plan (covering 12 people), and the 2025 Phase III Restricted Stock Incentive Plan (covering 1,074 people). Strategy
Focusing on precise talent matching and long-term supply, we strengthen our talent development strategy through regularized perfor-
mance management, university-enterprise cooperation, and a diversified training system, providing solid talent support for our continu-
In 2025, we processed the vesting of several equity incentive plans for our employees, including the third vesting of the ini- ous innovation and sustainability. To ensure the effective implementation of our talent development strategy and promote the continuous
improvement of employee capabilities, we have identified and reviewed potential risks and opportunities that may arise in the talent de-
tial grant of the 2021 Restricted Stock Incentive Plan (covering 549 people), the second vesting (second batch) of the velopment process:
initial grant of the 2021 Restricted Stock Incentive Plan (covering 1 person), the second vesting of the reserved grant of
List of Risks
the 2021 Restricted Stock Incentive Plan (covering 104 people), the third vesting of the 2022 Restricted Stock Incentive
Risk type Risk name Risk description
Potential financial
Response measures
impact
Plan (covering 1 person), the first vesting of the initial grant of the 2023 Restricted Stock Incentive Plan (covering 801 Establish incentive and retention
Turnover of Loss of high-end techni-
people), and the first vesting of the reserved grant of the 2023 Restricted Stock Incentive Plan (covering 95 people).
Talent attrition
risk
talent in key
positions
cal and managerial talent
may affect team stability
Labor costs may increase
mechanisms, strengthen career
development planning, and opti-
mize talent policies
Since our listing, we have launched a total of nine equity incentive plans, and the stock has been granted to 3,833
person-times. Difficulty in Expand university-enterprise coop-
Recruitment Difficulty in recruiting for Recruitment cycles may be
attracting high- eration channels and optimize
risks core technical positions extended
tech talent recruitment strategies
List of Opportunities
Opportunity Opportunity Opportunity
Potential benefits Measures and practices
type name description
Training and ca- Opportunities for Employees enhance job Formulate training plans, combining
Enhance productivity and
pability enhance- employee skill skills and comprehensive online and offline training with hands-on
innovation capabilities
ment development abilities through training exercises
Jointly cultivate targeted
Opportunities for Provide a long-term supply
University-Enter- talent with universities Carry out joint research, internships,
high-end talent of high-quality talent that
prise Cooperation to optimize the talent and targeted cultivation programs
cultivation meets corporate needs
reserve
Incentive opportu- Implement preferential Improve talent policies, welfare
Enhance talent attraction
Incentive policies nities for high-end policies to attract indus- guarantees, and career development
and retention rates
talent try-leading talent channels
Shanghai Huace Navigation Technology Ltd
People-Oriented
Impact, Risk, and Opportunity Regular Performance Reviews and Assessments
Management
To ensure the implementation of our talent development strategy, we ef- We have established a mechanism for regular performance reviews and assessments, systematically evaluating employees across dimen-
fectively address potential risks such as talent mismatch, skill gaps, and sions such as work performance, competency, and career development aspirations. This enables us to accurately understand the current
turnover through measures like diversified training, regular performance state and growth needs of our talent pool. The insights gained are directly applied to talent incentives, job adjustments, promotions, and the
surveys, and university-enterprise cooperation. At the same time, we design of personalized training plans—providing objective, data-driven support for optimizing talent management strategies and unlocking
fully explore opportunities for employee growth and the cultivation of employee potential. This creates a closed-loop linkage that reinforces and advances our overall talent development strategy.
high-quality talent, providing a solid talent guarantee for our long-term
innovation and sustainability.
University-Enterprise Cooperation
Training System
We adhere to the deep integration of industry, academia, and research as a cornerstone of our talent strategy, actively advancing univer-
sity–enterprise collaboration. Through targeted talent development, joint scientific research, and project-based practical partnerships—
We have established a comprehensive employee training system. Le-
centered on our core technological domains and job requirements—we have established a full-chain cultivation model that seamlessly
veraging an internal learning platform, we provide standardized and
connects campus talent pipelines with real-world enterprise application. This approach ensures a steady influx of high-quality professional,
reusable online course resources, combined with customized offline
technical, and managerial talent, reinforcing the foundation for our long-term innovation and sustainable growth.
training formats such as on-site lectures, hands-on exercises, and spe-
cial topic seminars. This approach balances the breadth of coverage
In 2025, we supported 18 competitions at higher education and vocational institutions, reaching approximately 100 universities. Through
and contextual relevance of training, effectively reducing the costs and
these discipline-specific contests, we actively fostered teaching exchanges and practical innovation in surveying, geographic information,
efficiency risks associated with talent development, while broadening
and related fields—helping to enhance students’ professional competencies and holistic development. This initiative strengthens the inte-
channels for employees’ independent learning and skill enhancement.
gration of industry and education and advances talent cultivation aligned with the evolving needs of the sector.
Case Study: Expanding University-Enterprise Cooperation to Jointly Cultivate Talent in the
New Employee Onboarding Training Navigation Field
We have established a standardized new employee onboarding In November 2025, we hosted a delegation of leaders, professors, and postdoctoral fellows from the School of Instrument
training system. It delivers systematic training on core content such Science and Engineering at Southeast University for a special exchange program aimed at expanding employment opportu-
as corporate culture, rules and regulations, job responsibilities, nities. The delegation toured our showroom to gain in-depth knowledge of the applications of our high-precision products in
and safety standards. This helps new employees quickly integrate various fields. Subsequently, both parties engaged in in-depth discussions on industry-academia-research collaboration and
into the team and become familiar with their roles, shortening their precise talent matching. We expressed our strong willingness to collaborate on core technologies and targeted talent cultiva-
adaptation period and reducing the risks of early turnover and role tion, and offered access to our practical resources. This event effectively built a bridge for university-enterprise engagement,
mismatch—thereby laying a solid foundation for talent retention and led to preliminary cooperation intentions, and laid a solid foundation for cultivating and supplying high-quality professionals
long-term development. in the high-precision navigation field.
Employee Skills Training
Focusing on core positions and business needs, we continuously
deliver specialized skills training for employees across key areas
such as technology R&D, production operations, customer service,
and quality management. Through targeted capability building and
hands-on practice, we enhance our professional competencies and
job competitiveness, effectively mitigating operational risks stem-
ming from skill gaps—and thereby providing robust talent support
for our technological innovation and business transformation.
Exchange and Cooperation with Southeast University
Shanghai Huace Navigation Technology Ltd
People-Oriented
Employee Health and Safety
We regard the physical and mental health of our employees as a critical baseline for corporate operations and have established a com-
Case Study: Supporting the Successful Hosting of the First National University Student Digital
prehensive occupational health and safety management system. By formulating strict operating procedures and risk prevention and con-
and Intelligent Innovation Competition in Remote Sensing
trol measures, we continuously conduct safety production training and emergency drills, dedicated to eliminating various safety hazards
In October 2025, the first National University Student Digital and Intelligent Innovation Competition in Remote Sensing was at their source in both office and project sites.
successfully held in Chibi City, Hubei Province. A total of 146 teams from 41 universities across the country participated in
events such as UAV remote sensing, LiDAR, SLAM surveying, and intelligent interpretation. As a supporting organization,
we provided technical equipment and professional team guidance throughout the event, assisting with competition organiza- Occupational Health
tion and implementation. Through this practical competition, students received systematic training in high-tech applications,
full-process data handling, and teamwork. The event also strengthened the practical platform for university-enterprise and
We strictly adhere to laws and regulations such as the Work Safety Law
industry-academia-research cooperation, providing strong support for talent cultivation and the commercialization of re-
of the People's Republic of China and the Law on the Prevention and
search achievements in remote sensing technology.
Control of Occupational Diseases. We have established a comprehensive
safety management system that covers all employees and all operational
scenarios, clearly defining roles, responsibilities, and management mech-
anisms to provide a robust institutional foundation for employee health
and safety. Our office premises are equipped with AED devices, first-aid
kits, and other emergency response equipment to ensure prompt medical
assistance when needed. Additionally, we regularly conduct health and
safety training for employees to enhance awareness and foster a culture
of safety across the organization. AED and First-Aid Kit
Case Study: Organizing Health Check-ups to Care for Employees' Physical and Mental Well-being
In 2025, we organized annual occupational health check-ups
Competition Site of the National University Student Digital and Intelligent Innovation Competition in Remote Sensing for all employees at CHC Navigation. These check-ups included
standard medical screenings as well as targeted occupational
health examinations tailored to specific roles, enabling us to sys-
tematically monitor employees’ physical well-being and proactive-
ly prevent work-related illnesses. Through these health manage-
ment initiatives, we gained timely insights into the overall health
status of our workforce and were able to offer personalized health
Indicators and Targets guidance and support based on individual results. This approach
reflects our deep commitment to—and genuine care for—the
physical and mental well-being of our employees, reinforcing their
Employee Health Check-up
sense of belonging and contributing to greater team stability.
We set quantitative indicators and targets centered on core dimensions of talent development to provide solid talent support for our sus-
tainable development.
Key Performance
Safety Training
As of the end of the reporting period, we had launched 7 university-enterprise cooperation projects based on the "Explorer We place great importance on safety production training. Through a va-
Program" special technology initiative; riety of formats—including fire safety knowledge sessions and hands-on
emergency drills—we help employees master essential safety protocols
In terms of high-end talent, we have cumulatively been recognized with 1 Shanghai Outstanding Talent, 1 Industry-Leading
and emergency response techniques, enhancing their ability to respond
effectively and protect themselves in unexpected situations. Supported by
Talent, 2 top talents in the Oriental Talents Program, 1 top talent in the "Qingfeng Program," and 1 individual in the Orien- our comprehensive safety management system, we have been awarded
the title of “Qingpu District Industrial and Commercial Enterprise Safety
tal Talents Youth Program;
Production Standardization Level II Excellent Enterprise” and maintain a
valid Work Safety Permit. Through systematic and regular safety training,
A total of over 500 training sessions were conducted throughout the year, with a training coverage rate of 100% . we continuously reinforce safety awareness across the entire workforce,
strengthening the foundation of safe production and upholding our com- Donation of Teaching and Research Equipment to the
mitment to a secure working environment. China Fire and Rescue Institute
Shanghai Huace Navigation Technology Ltd
People-Oriented
Key Honors and Certificates Employee Benefits and Care
We deeply value employee well-being and care. To foster a warm, supportive, and vibrant workplace, we have established comprehen-
sive communication channels, thoughtful care facilities, and a rich array of cultural and recreational activities. These initiatives not only
strengthen our team’s sense of belonging, happiness, and job satisfaction but also drive the shared growth and success of both employ-
ees and the Company.
Democratic communication
We adhere to the communication philosophy of "openness, transparency, and two-way in-
Certificate for Safety Production Standardization Level teraction," establishing a multi-dimensional and comprehensive democratic communication
Our Work Safety Permit
II Excellent Enterprise mechanism to ensure that employee demands are responded to promptly and addressed
reasonably. By setting up diverse communication channels, we ensure their regular and effi-
cient operation. In accordance with laws and regulations, we have established a labor union,
which serves as a communication bridge between management and employees. It regularly
collects centralized employee demands, organizes forums and exchanges, and promotes
the implementation of matters such as labor rights protection and welfare optimization. We
have established an online community called "Tongshiba (Colleague Hub)," where employ-
ees can freely post questions, suggestions, and criticisms on various topics such as our
products, services, work environment, and living support, with the option of real-name or
Case Study: Conducting Emergency Drills to Enhance Emergency Response Capabilities anonymous posting, breaking down hierarchical barriers. In addition, employees can obtain
the contact information of all staff, including our Chairman, through Enterprise WeChat,
enabling direct communication across departments and levels to ensure that important de- Development of the "Tongshiba
(Colleague Hub)" Online Platform
In July 2025, we organized an emergency response drill simulating an elevator entrapment incident. The exercise covered
mands quickly reach the decision-making level.
the full response process—from initial alarm activation and on-site passenger reassurance to coordinated rescue operations.
This hands-on drill effectively tested the feasibility of our emergency plan and significantly improved cross-departmental co-
ordination and response efficiency during sudden incidents. It also revealed opportunities for enhancement, particularly in
procedural familiarity and internal communication. These insights have provided clear guidance for refining our emergency
protocols and strengthening staff training—ultimately elevating the emergency support capabilities of our property services
Employee Satisfaction Surveys
team.
To promptly understand employees' views and needs regarding our work environment, benefits, and hardware facilities, we have devel-
oped and distributed the Satisfaction Survey Questionnaire to comprehensively collect employee opinions and suggestions. By systemati-
cally analyzing the questionnaire data, we generate a detailed Questionnaire Report, which identifies our strengths and areas for improve-
ment in employee care. Based on this, we formulate targeted improvement measures to continuously optimize the employee experience.
Items Covered in the Survey Questionnaire
Campus
Equipment issues Public
Daily office Employee apartment
and activity facilities in
affairs meals management
organization the campus
and services
Emergency Response Plan Drill for Elevator Entrapment
Shanghai Huace Navigation Technology Ltd
People-Oriented
Employee Care Facilities Employee Activities
To meet employees' needs for leisure, sports, and health outside of work, we have invested resources in creating diverse, high-quality We organize a wide variety of employee activities centered on holiday culture, team building, and interest development to create a posi-
care facilities. We are equipped with professional basketball courts, soccer fields, billiard facilities, and a fitness equipment area, cover- tive, united, and cooperative cultural atmosphere.
ing a variety of needs such as aerobic and ball sports, which are open to employees free of charge and can be booked independently. At
the same time, we have set up dedicated recreational activity venues to provide employees with a comfortable space to relax and inter-
act. In addition, we have placed AED first-aid devices and first-aid kits in office areas, comprehensively covering daily health protection A Wide Variety of Employee Activities
and emergency medical needs, safeguarding the physical and mental health of employees.
Extensive Employee Activity Facilities
Employee Cafeteria Fitness Equipment Basketball Court
Halloween Event Outdoor Spring Outing
Competition Photos Birthday Party
Case Study: International Women’s Day Themed Event to Care for the Development of Fe-
male Employees
In March 2025, we held an Interna-
tional Women's Day themed event
aimed at all female employees.
The event effectively enhanced
Billiard Facilities Soccer Field Other Activity Venues
their sense of belonging and fulfill-
ment, reflecting our commitment
to employee well-being and our
dedication to building an inclusive
workplace culture.
International Women's Day
Shanghai Huace Navigation Technology Ltd
Giving Back to Society
Contributing to Rural Revitalization Case Study: Donating Funds and Equipment to the Zhizhuo Wang Education Development Fund at
Wuhan University to Support the Development and Talent Cultivation in Remote Sensing
In 2025, we donated multi-rotor drones, airborne LiDAR systems, LiDAR point cloud production software, and an education
In active response to the national rural revitalization strategy, we have long provided donations and support to Dongfang Village in
fund—totaling RMB 5 million—to the Zhizhuo Wang Education Development Fund at Wuhan University. This donation is
Qingpu District. These efforts aim to enhance rural industrial efficiency, optimize governance, and improve local livelihoods, thereby pro-
specifically designated to support the innovative development of the remote sensing discipline, with the aim of advancing
moting integrated urban-rural development and comprehensive rural revitalization. Through these practical actions, we fulfill our social
talent cultivation and academic innovation in this field. The contribution provides critical resources for cutting-edge research
responsibility of serving grassroots communities and empowering rural areas.
and high-level competitions in remote sensing, effectively enhancing students’ innovative thinking and practical capabilities.
It also reflects our long-standing commitment to fulfilling corporate social responsibility by supporting foundational scientific
research and higher education, thereby helping to drive the sustainable development of China’s surveying, mapping, and
remote sensing endeavors.
Case Study: Volunteer Services to Improve Rural Well-being
In 2025, we organized a group of Party member volunteers to conduct an environmental cleanup campaign in Dongfang
Village, focusing on areas such as the main village roads, green belts, and centralized waste collection points. Through this
grassroots governance practice, the village's appearance and environment were improved.
Donation Ceremony
Case Study: Yanping Zhao Donates Funds to the Jingsheng Ning Education Development
Fund at Wuhan University
Environmental Cleanup Campaign
In 2025, Mr. Yanping Zhao, our Chairman, donated RMB 2 million to the Jinsheng Ning Education Development Fund at
Wuhan University to support talent cultivation in the field of surveying and mapping. This donation is both a tribute to Acade-
mician Jinsheng Ning's dedication to education and a reflection of Mr. Yanping Zhao's sense of responsibility towards edu-
cation. It aims to help the surveying and mapping discipline at Wuhan University continue to lead industry development and
inspire more students to devote themselves to serving the country through science and technology.
Practicing Philanthropy and Charity
Leveraging our technological expertise and industry resources, we carry out specialized charitable activities focusing on educational de-
velopment, public welfare, and emergency response.
In 2025, we donated over RMB 10 million in total to more than ten universities and relat-
ed institutes, including Wuhan University (Zhizhuo Wang Education Development Fund
and Jinsheng Ning Education Development Fund), Hohai University, and China Univer-
sity of Mining and Technology. These donations support the development of surveying
and mapping-related disciplines and talent cultivation, contributing to the industry's
talent pool and academic advancement. Concurrently, we made charitable donations
to the Shanghai Charity Foundation and the Qingpu District representative office of the
Donating Funds to the Jingsheng Ning Education Development Fund at Wuhan University
Shanghai Elderly Friends Foundation, demonstrating our corporate warmth and social
responsibility as a listed company through precise and practical philanthropic actions.
Shanghai Huace Navigation Technology Ltd
Giving Back to Society
Case Study: Donating Funds and Equipment to Hohai University to Support Disciplinary
Development, Talent Cultivation, and Innovation and Entrepreneurship Education
In 2025, we donated a total of RMB 5 million in funds and software and hardware equipment to Hohai University to estab-
lish the “CHC Navigation Education Fund.” The fund is designed to provide robust support for disciplinary development, the We also donated products valued at several million
cultivation of young talent, and innovation and entrepreneurship education at Hohai University. This contribution has actively RMB to more than 10 schools, helping universities
promoted the integration of industry and academia, helping to accelerate China’s advancement toward becoming a global optimize teaching conditions, enhance practical
leader in education, science and technology, and talent development. skills, and promote the deep integration of industry,
academia, and research.
RMB 50,000 to the Qingpu District Representative Office of the Shanghai
Elderly Friends Foundation to Support Public Welfare for the Elderly
Additionally, we contribute to the development of global scientific research and education by donating advanced equipment and provid-
ing technical support:
Donation of an unmanned
Donation of GNSS receivers to Support for the FIG Young surface vessel system to a
Unveiling Ceremony of the CHC Navigation Education Fund
the University of Ghana Surveyors Network water resources research
center in Southeast Asia
Supporting surveying and Donation of relevant technical Assisting in hydrological moni-
mapping education and equipment to encourage young toring and water resource man-
research practices in local surveyors to apply advanced agement research to enhance
Case Study: Donating Funds to China University of Mining and Technology and Signing a higher education and contrib- tools in addressing global geo- local adaptive capacity to cli-
Strategic Cooperation Agreement uting to the cultivation of sur- spatial challenges. mate change.
veying and mapping talent in
In 2025, we donated RMB 1 million to China University of Mining and Technology to support initiatives including research Africa.
funding, laboratory construction, and the establishment of scholarships. We also signed a strategic cooperation agreement
with the university—concrete actions that actively implement the national strategies of “Innovation-Driven Development”
and “Industry-Education Integration.” This collaboration not only strengthens the foundation for scientific research and talent
development but also injects new momentum into the national energy security strategy and the intelligent transformation of
surveying and mapping technologies.
Donating Funds to China University of Mining and Technology
Shanghai Huace Navigation Technology Ltd
Green Operations
Environmental Compliance Management
We have established comprehensive environmental management policies and systems
that clearly define the environmental responsibilities of each department and position, Energy Utilization
ensuring that all our environmental protection work is well-regulated. In accordance with
the Infrastructure and Work Environment Control Procedure and the Environmental and
Safety Operational Control Procedure, we systematically manage our infrastructure, We are committed to building an efficient energy management system and promoting the rational use of energy, achieving tangible ener-
work environment, and environmental matters to ensure the effective operation of our gy savings and consumption reduction through robust management systems, and optimized operational processes. In daily office opera-
environmental management system. tions, we post energy-saving signage and install independent switches in office buildings and power load areas to remind employees to
“turn off lights when you leave, turn off equipment when you depart.” Dedicated personnel conduct regular patrols to ensure that lights,
During the reporting period, we obtained ISO 14001 Environmental Management System
air conditioners, and other equipment are switched off when not in use.Moreover, we actively guide employees to cultivate energy-sav-
certification and have continuously optimized our environmental management processes.
ing habits and embed green office principles into their daily routines through targeted training sessions and awareness campaigns. Re-
Regular internal audits and management reviews are conducted to ensure that all activi-
garding equipment upgrades, our R&D Center and Manufacturing Department prioritize phasing out high-energy-consumption devices
ties during project development and design comply with environmental requirements.
and replacing them with new, high-efficiency, energy-saving alternatives—thereby reducing energy consumption at the source.
To implement our management policies and objectives and to identify and control sig-
To further enhance management efficiency, we have implemented a Building Automation System (BAS) to enable automated monitoring
nificant environmental factors, we have formulated the Environmental and Safety Op-
and optimized scheduling of lighting, air conditioning, ventilation, and other energy-consuming equipment across office areas, labora-
erational Control Procedure. This procedure systematically controls environmental and
tories, and public facilities. The system dynamically adjusts equipment operation based on real-time occupancy and usage patterns,
occupational health and safety management activities related to engineering consulting,
effectively preventing energy waste, improving overall energy utilization efficiency, and providing reliable data to support informed ener-
design, and general contracting projects. It specifies operational methods and conditions
gy-saving decisions.
to ensure that all activities are conducted under controlled conditions. Through this pro-
cedure, we can effectively prevent potential environmental risks and scientifically man-
age identified risks. Environmental Management
Key Performance
During the reporting period, we strictly complied with environmental laws and regulations, experienced no major sudden
environmental incidents, and received no environmental administrative penalties.
Energy Saving
Energy-Saving Sign and Consumption Building Automation System
Reduction Initiative
Efficient Resource Utilization
We attach great importance to energy management and resource conservation and are committed to the scientific and rational use of
energy and resources—reducing costs while enhancing overall corporate economic benefits. In accordance with the Resource and En-
ergy Management Control Procedures, we have designated the Administration Department as the competent authority responsible for Water Resource Management
the overall planning, supervision, and assessment of energy and resource consumption across all workshops and relevant functional
departments, ensuring the effective implementation of all management measures. Each department, based on its own responsibilities,
In water resource management, the Administration Department formulates scientific water use
undertakes daily management duties and implements energy-saving and consumption-reduction measures to ensure the rational use of
energy and resources. plans for each department based on water consumption indicators, defining clear water use
targets and assessment mechanisms to ensure the efficient utilization of water resources. The
We conduct regular comprehensive inspections, organizing a company-wide special inspection of energy and resource use at least plumbing and electrical team regularly inspects water pipelines to promptly repair any leaks,
once every six months. Through methods such as on-site verification and data analysis, we identify potential points of waste, evaluate drips, or bursts, reducing waste at the source. Each department, based on its specific character-
the effectiveness of energy-saving measures, and formulate and track corrective action plans for implementation. At the same time, we istics, studies relevant regulations, and formulates targeted water-saving measures to optimize
actively promote green concepts such as "water conservation, electricity conservation, energy conservation, land conservation, and ma- water use processes and improve water efficiency.
terial conservation." Tailored control measures have been developed for different locations and operational activities, enabling efficient
resource utilization through process optimization, adoption of energy-saving equipment, and waste reduction.
Water Conservation Sign
Shanghai Huace Navigation Technology Ltd
Green Operations
Waste Management
Air Pollution Management
As a high-precision navigation and positioning technology enterprise, our own operations generate almost no "three wastes." However, In terms of air pollution, our operational activities do not produce direct waste gas emissions. During R&D, production, and operations,
we still strictly adhere to environmental protection regulations to ensure the compliant treatment of wastewater, waste gas, and solid we minimize our impact on the atmospheric environment by optimizing processes, using environmentally friendly materials, and adopt-
waste. In our EPC projects, we further strengthen the management of the three wastes by optimizing resource utilization and reducing ing green, low-carbon technologies, while actively responding to green and low-carbon policies.
waste emissions through scientific planning and green construction, thereby practicing the concept of sustainable development, and
contributing to ecological protection. Air Pollution Control Measures
Pollution Prevention and Emission Management Strictly adhere to national regulations in the transportation, storage, and use of hazardous chemi-
Management of hazardous cals (such as alcohol and methane) to prevent the leakage of volatile organic compounds (VOCs)
chemicals and flammable/ that could cause air pollution. Hazardous materials must be stored in designated areas, away
explosive materials from ignition sources, and equipped with comprehensive fire prevention, explosion-proof, and
Water Pollution Management fire-extinguishing facilities to ensure the safety of the atmospheric environment.
In terms of water pollution management, we have established comprehensive wastewater
In EPC projects, strict dust management measures are implemented for dust-prone activities
treatment facilities in strict accordance with national and local environmental regulations to en- Dust control at
such as earthwork, transportation of bulk materials, and site cleaning to ensure that air pollutant
sure that our wastewater is discharged in compliance with standards. In 2025, we maintained construction sites
emissions from construction sites meet compliance standards.
a 100% compliance rate for wastewater discharge, with no instances of non-compliant emis-
sions. We regularly commission third-party professional institutions for testing, and all results
have met environmental standards.
Key Performance Noise Control
In terms of noise control, we strictly manage noise emissions at our construction and installation sites to ensure that noise levels in res-
In 2025, we maintained a compliance rate for wastewater discharge, idential areas and from construction machinery comply with national and local standards. Through the use of professional monitoring
with no instances of non-compliant emissions. Wastewater and Noise
equipment and third-party monitoring, all indicators at monitoring points meet the required standards.
Monitoring Report
Water Pollution Control Measures
Waste Management
In solid waste management, we implement strict measures for classified collection and compliant disposal. Hazardous waste (such as
chemical agents and adhesives) is entrusted to qualified professional institutions for treatment, ensuring 100% compliance. For non-haz-
Standardized discharge of domestic Control of toner from office ardous waste (such as paper, plastics, and office trash), we implement classified management to increase recycling rates and reduce
sewage equipment the environmental burden. At our construction sites, construction debris, waste materials, and auxiliary packaging materials must be
transported to designated locations, with on-site incineration or illegal landfilling strictly prohibited.
Ensure that domestic sewage is treated to meet When replacing toner cartridges for copiers and
standards before being discharged into the municipal printers, it is strictly forbidden to wash away toner
sewage network, and prohibit the direct discharge of with water to prevent it from entering rainwater or
untreated sewage to prevent water pollution at the sewage pipes. Toner must be collected centrally and
Waste Disposal Methods
source. disposed of in accordance with regulations to avoid
water contamination.
Waste generation site Category Disposal method
Leak prevention management for Wastewater treatment at
hazardous materials and oils construction sites Waste electronic products, toner cartridges, Periodically collected and handed over to pro-
Office premises
Strictly control the transportation, use, and storage In EPC projects, strengthen the management of ink cartridges fessional companies for disposal
of hazardous chemicals and oils to prevent leakage wastewater containing mud and sand at construction
accidents. In the event of a leak, it must be reported sites, strictly control its discharge, and ensure that Management and control of related parties
Waste from renovation and demolition, resid-
immediately and emergency measures taken to pre- construction organization complies with environmen- Small-scale construction should be strengthened; waste should be
ual renovation materials, auxiliary packaging
vent pollutants from entering water bodies. tal protection requirements to prevent construction sites (e.g., laboratory reno- transported to designated locations. On-site
materials, scrapped renovation tools and
vations) incineration is not permitted, and toxic and
wastewater from polluting surrounding water bodies. equipment
hazardous waste must not be used as backfill
Shanghai Huace Navigation Technology Ltd
Green Operations
Circular Economy Strategy
We actively promote the concept of a circular economy, integrating resource conservation and waste recycling into daily operations and We actively align with China’s national “dual carbon” strategic goals—carbon peaking and carbon neutrality—and have deeply embed-
R&D activities. Office and functional teams strictly adhere to paper-saving regulations, with double-sided printing and copying widely ded green and low-carbon principles into our core corporate strategy. Through high-precision spatio-temporal information technology, we
implemented. In R&D and production processes, we reduce raw material waste and mitigate environmental impact through effective are committed to empowering the low-carbon transformation of industries across the economy. On one hand, we systematically identify
recycling initiatives. These measures significantly enhance our resource utilization efficiency, delivering a win-win outcome for both envi- and manage both physical and transition risks posed by climate change to safeguard long-term business resilience and sustainability.
ronmental sustainability and economic performance. On the other hand, we proactively seize emerging technological opportunities in green development, with focused efforts in clean ener-
gy, precision agriculture, and environmental monitoring. By delivering efficient, low-energy-consumption product solutions, we help di-
verse sectors reduce their carbon emission intensity—contributing meaningful technological support toward the nation’s carbon peaking
and carbon neutrality objectives.
Key Performance
During the reporting period, we recycled motor packaging boxes and navigation product upper shell packaging boxes, reusing Identified Climate-Related Risks
them for customer order shipments. A total of approximately
Risk type Risk name Risk description Potential financial impact Response measures
The aluminum foil bags and bubble bags used for antenna and PCBA packaging are recycled and provided to outsourced
As market demand for ultra-low Continue investing in the re-
Research and development in-
manufacturers for reuse, with a cumulative reuse of more than 600,000 bags.
Transition Technology
power consumption and high-
ly integrated spatio-temporal
vestment continues to increase;
search and development of highly
integrated chips and low-power
failure to update technology in a
risks risks intelligent products accelerates, algorithms, and enhance technol-
timely manner may affect prod-
existing technologies may face ogy iteration efficiency through
uct competitiveness
the risk of becoming obsolete the IPD system
Strengthen green construc-
tion and scientific planning of
Extreme weather events such as
Addressing Climate Change
Extreme Project delivery may be delayed; engineering projects; enhance
Physical heavy rainfall and typhoons may
weather im- disruptions to raw material sup- the adaptability of equipment to
risks disrupt on-site construction work
pact ply may cause cost fluctuations extreme environments through
or affect the supply chain
highly reliable hardware at the
design stage.
CHC Navigation focuses on the risks and opportunities presented by climate change. Leveraging high-precision spatio-temporal infor-
mation technology, we provide technical support in key areas such as disaster prevention and mitigation, resource management, and
clean energy—helping to enhance resource utilization efficiency and strengthen climate risk resilience. Moving forward, we will contin-
ue to explore relevant technological applications aligned with our business growth, advancing corporate development in harmony with Identified Climate-Related Opportunities
green and low-carbon principles.
Opportunity Opportunity
Opportunity description Potential financial impact Response measures
Governance type name
Extreme weather events that Product upgrades have enabled
trigger dam breaches and geo- us to provide deformation mon-
Enhancing Increase market share and
We place great importance on climate-related risks and low-carbon development opportunities, integrating them as core components of Products and logical disasters have spurred itoring software and hardware
climate adapt- brand premium for disaster pre-
our ESG management system. Within our established ESG governance framework, management actively tracks national “dual carbon” service market demand for deformation solutions tailored to the diverse
ability vention and monitoring products.
policy developments, while business units routinely assess how climate-related risks affect supply chain stability, production safety, and monitoring and early warning needs of customers across vari-
systems. ous industries.
product development in their day-to-day operations. Through existing management mechanisms, we continuously identify, monitor, and
respond to climate-related risks and opportunities, ensuring that relevant initiatives are effectively implemented across our operations in
alignment with our business characteristics.
Improve the automation applica-
Green agricul- Automatic driving technology for The competitiveness of agricul-
Climate change has been formally integrated into our ESG governance framework. The Board of Directors holds ultimate responsibility tion of systems such as NX612
Resource ture: low-car- agricultural machinery can effec- tural products has been further
for strategic decision-making and oversight, while each business unit and subsidiary implements climate-related initiatives according in the entire process of cultiva-
efficienc bon and tively reduce fuel consumption enhanced, expanding their
to their specific roles and responsibilities. Through this tiered management mechanism, we continuously identify, assess, and address tion, planting, management, and
efficient during agricultural operations. global market share.
harvesting.
climate change-related risks and opportunities, ensuring they are appropriately considered and embedded across our operations and
management processes.
Shanghai Huace Navigation Technology Ltd
Green Operations
Impact, Risk, and Opportunity Management Emission Reduction and Precision Efficiency Enhancement in Smart Agriculture—Low-Carbon
Agriculture
We are committed to transforming high-precision spatio-temporal information technology into actionable productivity to combat climate
Through precision operations and intelligent management, smart agriculture reduces energy consumption and the use of
change. By empowering renewable energy development, enhancing agricultural carbon sequestration efficiency, and strengthening early
agrochemicals, lowering carbon emissions while increasing yields and facilitating a low-carbon, high-efficiency model.
disaster warning systems, we deliver comprehensive support for achieving global climate governance goals.
Precision seeding and fertilization are achieved
Precision through automated driving, land leveling, and guid-
Facilitating the Transition to Renewable Energy – Mitigating Climate Change Agricultural ance systems for agricultural machinery. This not only
Machinery enhances land yield per unit but also significantly
Our high-precision positioning technology directly empowers the construction and operation of green energy infrastructure, reduces fuel consumption and related carbon dioxide
reducing dependence on fossil fuels. emissions by minimizing repetitive operations.
Provides solutions for offshore wind turbine founda-
tion inspection and unmanned coastline measure-
Smart
ment, supporting accurate site selection and safe Intelligent spray control solutions enable the precise
ocean
operation of offshore wind farms. reduction of pesticides and chemical fertilizers, there-
Intelligent
by lowering agricultural non-point source pollution
Control
and greenhouse gas emissions resulting from the
Based on high-precision monitoring technology,
production and application of agrochemicals. Intelligent Spraying
real-time monitoring of tower and line safety is con-
Smart
ducted; high-precision technology serves the precise
power
layout of photovoltaic projects, ensuring the high
efficiency and stability of clean energy transmission
networks and promoting green transformation. Offshore Wind Turbine Foundation Inspection
Ecological Carbon Sink Monitoring and Forest/Grassland Protection—Supporting Carbon Neutrality
Healthy ecosystems are important carbon sinks. Our technology is
Extreme Climate Disaster Early Warning – Enhancing Climate Resilience used for the precise monitoring and management of forest and wet-
land resources, ensuring the quality of carbon sinks.
Climate change is leading to more frequent extreme weather events, and our technology can significantly enhance soci-
ety's ability to adapt to climate risks. The use of integrated "space-air-ground" technology
Smart for forest and grassland fire prevention, patrol, and
Providing millimeter-level real-time fusion monitoring monitoring, as well as laser scanning systems for
Forestry and
technology for geological disasters (such as debris forestry surveys, effectively prevents forest fires (a
Grassland
flows and landslides), dam safety, and slope sta- major source of short-term carbon emissions) and
Deformation
bility. In the event of floods or secondary disasters accurately calculates forest stock volume and car-
monitoring
triggered by extreme precipitation, it can provide bon sink capacity. Smart Forestry and Grassland
all-weather early warning, ensuring the safety of life
and property.
Monitoring reservoir rainfall and water levels and
Unmanned Operations to Reduce the Operational Carbon Footprint: Green Design
Smart water dam safety, improving the effective utilization rate of
management water resources, and addressing the uneven distribu-
tion of drought and flood caused by climate change. Reservoir Capacity Solution—APACHE Series USV
Equipped with a Multi-Beam Echosounder System
Our H3 monitoring GNSS receiver and The use of unmanned aerial vehicles (UAVs) and
other equipment feature low-power de- Replacement unmanned surface vessels (USVs) for hydrograph-
Low-Power
signs, significantly reducing the energy with Unmanned ic surveys, emergency reconnaissance, and nation-
Design
consumption of long-term field monitoring Systems al land surveys replaces traditional manned vehicle
equipment. operations, significantly reducing the carbon emis-
sion intensity of conventional survey methods.
Shanghai Huace Navigation Technology Ltd
Conclusion 86
Indicators and Targets Key Performance
We pay close attention to the risks and opportunities brought by climate change and, in line with our business characteristics, continu-
ously promote the application of high-precision spatio-temporal information technology in fields such as resource conservation, disaster
prevention and mitigation, clean energy, and smart agriculture. By enhancing monitoring capabilities, optimizing resource allocation, and Business indicators
improving operational efficiency, we play an active role in helping clients reduce their environmental impact and improve their climate
resilience. In the future, we will continue to explore the potential of our technology in climate management-related scenarios, in line with
Indicator Unit 2025 2024 2023
industry development trends.
Operating revenue Ten thousand yuan 369,915.21 325,101.34 267,834.11
Net profit attributable to shareholders of
Ten thousand yuan 68,542.06 58,340.32 44,914.08
the listed company
Biodiversity Conservation Basic earnings per share Yuan per share 0.882 0.764* 0.596*
Total assets Ten thousand yuan 606,420.51 512,441.08 441,205.00
We actively fulfill our corporate social responsibility in biodiversity conservation by minimizing the impact of our business activities on
the ecological environment through technological innovation and scientific management. We strictly adhere to ecological protection reg-
ulations and focus on maintaining ecological balance and avoiding the destruction of natural habitats during project development and Environmental indicators
operation. Concurrently, we promote the application of high-precision navigation and positioning technology in ecological monitoring and
protection, providing precise data support for biodiversity. In the future, we will continue to deepen technology application and explore
more solutions to support biodiversity conservation. Topic Indicator Unit 2025 2024 2023
Number of violations of environmental
Cases 0 0 0
laws and regulations
Environmental Amount of major administrative penal-
management ties imposed by relevant departments
Ten thousand
such as the ecological environment 0 0 0
yuan
department due to environmental inci-
dents during the reporting period
Energy
Total amount of purchased electricity MWh 6,746,958.60 5,601,429.20 5,406,212.34
utilization
Social indicators
Topic Indicator Unit 2025 2024 2023
Total number of employees Persons 2,333 2,046 1,844
Number of newly-recruited employees Persons 624 454 \
Number of female employees Persons 479 416 387
Number of male employees Persons 1,854 1,630 1,457
Employee
employment
Proportion of female employees % 21 20 21
Proportion of male employees % 79 80 79
Total number of R&D personnel Persons 879 681 615
Total number of R&D personnel % 37.68 33.28 33.35
*Note: The data has been adjusted.
Shanghai Huace Navigation Technology Ltd
Conclusion 88
Governance indicators
Topic Indicator Unit 2025 2024 2023 Topic Indicator Unit 2025 2024 2023
Number of employee resignations Persons 337 253 \ Number of directors Persons 8 7 7
Employee
employment
Employee turnover/resignation rate % 14 12 \
Number of female directors Persons 1 1 1
Employee social insurance coverage
% 100 100 100
rate Number of independent directors Persons 3 3 3
Employee
rights & Confirmed incidents of discrimination Cases 0 0 0
interests Number of Board meetings Times 13 11 8
and Confirmed incidents of forced labor Cases 0 0 0
welfares
Number of Audit Committee meetings Times 6 8 6
Confirmed incidents of child labor Cases 0 0 0 Corporate
governance Number of Remuneration and Appraisal
Number of Times 12 8 5
Number of safety drills 1 2 1 Committee meetings
times
Number of Nomination Committee meet-
Number of work-related injuries Persons 3 1 0 Times 0 1 2
Employee ings
health and
safety Number of Strategy and Investment
Number of work-related fatalities Persons 0 0 0 Times 1 0 0
Committee meetings
Occupational disease incidence rate % 0 0 0
Average board attendance rate % 100 100 100
Total number of training sessions for the
Talent Times 573 527 396
year Number of Shareholders' Meetings Times 5 3 3
training and
development Employee training coverage rate % 100 100 100
Percentage of employees who have
% 100 100 100
Ten thousand Business signed the integrity commitment letter
R&D expenditure 55,799.68 46,901.91 46,211.31
yuan ethics Total number of lawsuits/administrative
Cases 0 0 0
Ratio of total R&D expenditure to penalties for violation of fair competition
% 15.08 14.43 17.25
operating revenue
R&D and
Number of patents held Cases 490 452 353
innovation
Number of invention patents held Cases 191 183 162
Number of software copyrights held Cases 358 333 315
Amount of damages involved in major
Product Ten thousand
liability accidents related to product and 0 0 0
quality yuan
service safety and quality in the year
Number of confirmed data security
Cases 0 0 0
incidents
Data Monetary value involved in data security Ten thousand
security 0 0 0
incidents yuan
and
customer Number of confirmed customer privacy
Cases 0 0 0
privacy breaches
Monetary value involved in customer Ten thousand
privacy breaches yuan
Shanghai Huace Navigation Technology Ltd
Conclusion 90
Index of Indicators
Primary topics Secondary topics Relevant sections Primary topics Secondary topics Relevant sections
Management of climate change-related risks and opportunities Climate change tackling Risk management Supply chain security
Assessing the adaptability of the Company's strategy, business
Climate change tackling Supply chain security Safeguard measures Supply chain security
model, etc., to climate change
Transformation plans, measures, and progress in addressing cli-
Climate change tackling Climate change tackling Improvement measures Supply chain security
mate-related risks and opportunities
Greenhouse gas reduction practices Climate change tackling Outstanding payments Not involved
Equal treatment to small and medi-
New technologies, products, and services conducive to reducing um-sized enterprises
Climate change tackling
carbon emissions and achieving carbon neutrality Specific details Supply chain security
Pollutant discharge treatment Waste management
Management system Product quality
Pollutant discharge
Administrative penalties Not involved
Quality certifications Product quality
Waste disposal Treatment status Waste management Safety and quality of products and ser-
Major incidents Not involved
vices
Protective measures within the region Biodiversity protection
Ecosystem and biodiversity After-sales service Customer rights and interests
protection
Protection and restoration measures Biodiversity protection
Accessibility Customer rights and interests
Environmental compliance
Risk management
management
Management system Information security
Environmental compliance
Emergency incidents Not involved
management
Security incidents Information security
Data security and customer privacy
Administrative penalties Not involved
protection
Customer privacy protection Information security
Energy usage Usage status ESG performance
Data breach incidents Information security
Usage of water resources Usage status Efficient resource utilization
Employee recruitment Talent attraction
Specific measures Waste management
Circular economy Employees Occupational health and safety Employee health and safety
Progress and outcomes Waste management
Contributing to rural revital- Career development and training Talent development
Specific measures
ization
Rural revitalization
Contributing to rural revital- Due diligence Due diligence implementation Communications with stakeholders
Achievements
ization
Communications with stakeholders,
Communication mechanisms
Contributions to the society Contribution status Practicing public welfare Investor relations management
Communications with stakeholders
Feedback channels Communications with stakeholders
Strategic objectives Innovation-driven
Management system Business ethics
Specific details Innovation-driven
Innovation-driven
R&D achievements Innovation-driven Risk assessment Business ethics
Anti-commercial bribery and anti-corrup-
tion
Innovation impact Innovation-driven Training performance Business ethics
Fields of engagement Innovation-driven Incidents occurred Business ethics
Ethics of science and tech-
nology
Violations Not involved Anti-unfair competition Administrative penalties Business ethics
Shanghai Huace Navigation Technology Ltd
Conclusion 92
Reader Feedback
Dear Readers： 8. How do you think the Company is doing in serving customers and protecting stakeholders?
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cerely value your valuable advice and suggestions on the Report so that we can make further improvements.
practices of the Company?
Government Customer Employee Partner Environmental related organization
Community and the public
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