Environmental, Social, and
Governance (ESG) Report
Loncin Motor Co., Ltd.
Contents
About the Report 03
Laying a Solid Foundation for Governance, Empowered by Innovation, Forging Out-
Top Message 04 Ensuring Steady & Long-Term Development standing Products
Through Compliance
About LONCIN 05
Wholehearted Loyalty to the Party, Steering 14 Empowered by Intelligent Innovation, Jointly Writing a 23
ESG Governance 10 LONCIN on a Steady Course New Chapter in the Industry
Building a Solid Foundation for LONCIN 16 Risk Control as a Foundation, Safeguarding the 25
Development of the Green Chain
Steady Development with Strict Adherence to
Operational Bottom Lines Comprehensive Quality Management Across the Entire 26
Supply Chain, Strengthening the Foundation of Quality
Walking Hand-In-Hand with Transparency and 20
Strengthening Value Communication
Appendix 1: Key Performance 47
Indicators Green Intelligent Manufacturing, Leading People-Oriented Development for Social
the Low-Carbon Transformation Harmony
Appendix 2: Index of 48
Indicators
System Management: Laying a Solid Green Foundation 28 Employee Empowerment and Value Realization 39
Appendix 3: Feedback Form 50 Responding to Climate Change, Protecting Our Earth 30 Warm Care, Greater Happiness 41
Green Operations and Low-carbon Production 32 Life First, Safety Foremost 44
Continuous Innovation-Driven Green Development 35 United in Purpose, Spreading LONCIN’s Warmth 46
About the Report
Report Overview Data Sources Report Access
This report is the Environmental, Social and Governance (ESG) Report of The financial data used in the Report is from the audited annual report This report is published in both English and Chinese, and the Chinese text
Loncin Motor Co., Ltd. (hereinafter referred to as “the Report”), disclosing of the Company, and other data is from official documents and statistical shall prevail in case of ambiguity between the versions. You can obtain more
and presenting the Company’s performance in environmental, social and reports of the Company (previous years' data should be based on the dis- information about our environmental, social and corporate governance on
corporate governance areas to stakeholders and other parties. The Report closure in this report). the Company's official website (https://www.loncinindustries.com) and the
has been reviewed and approved by the Boar d of Directors of the Com- website of the Shanghai Stock Exchange.
pany, which assumes responsibility for the authenticity and validity of the
information contained herein.
Basis for the Preparation
Contact Information
Scope of Reporting
The Report complies with the Guidelines No. 1 for Self-regulation of Listed
Companies—Standardized Operation, Guidelines No. 14 for Self-Regulation Contact address: Zone A, LONCIN Industrial Park, Dashi Second Branch
of Listed Companies—Sustainability Report (Trial) and Guidelines No. 4 for Road, Nan'an District, Chongqing
The scope of information disclosed in the Report covers Loncin Motor Co., Self-Regulation of Listed Companies – Preparation of Sustainability Re-
Ltd. its branches and subsidiaries, which is consistent with the scope of the Contact number: 023-89028829
port issued by the Shanghai Stock Exchange, with reference to the Global
consolidated financial statements of LONCIN (603766). Sustainability Standards Board (GSSB)'s GRI Sustainability Reporting Stan- Email: service@loncinindustries.com
dards (GRI Standards) and the Sustainable Development Goals (SDGs) of
the United Nations.
Period
Unless otherwise specified, the scope of time covered in the Report is from Reference Explanation
January 1st, 2025, to December 31st, 2025. To ensure the completeness of
the Report, the scope of time for certain information has been extended
For the convenience of presenting and reading, “Loncin Motor Co., Ltd.” is
both forward and backward.
also indicated in the report by “LONCIN”, “the Company” or “we”.
Message from the
Dear partners and friends:
Time moves on, and action defines progress. In 2025, amid the sweeping waves of industrial transformation and fierce market competition, LONCIN remained steadfast in the vision of "A Leading Brand
Chairman
with a Low-Carbon Power System and Intelligent Products" and stayed committed to the corporate mission: "Creating Speed & Energy, Pursuing Excellence Beyond Limits, Benefiting Humanity, Crafting
Dynamic Beauty via Technology". LONCIN embedded ESG principles across its entire production and operation chain, strengthened its foundation through green intelligent manufacturing, fostered syn-
ergies via collaborative governance, and laid a solid groundwork for long-term growth through standardized corporate governance, thus making remarkable strides toward sustainable development.
Building on green development to anchor the “main direction” of intel- Taking governance as the core to consolidate the “ballast” for steady
ligent manufacturing transformation development
High-quality development in the manufacturing sector cannot be achieved without the under- Standardized governance is the fundamental guarantee of sustainable corporate develop-
pinning of green initiatives. As a manufacturing enterprise, we firmly believe that smart man- ment. In 2025, we will comprehensively advance the upgrade of our corporate governance
ufacturing is not an option, but a necessity for survival. Over the past year, we have stayed system to create a new cultural ecosystem characterized by “unity in diversity and harmony
committed to the "Carbon Peaking and Carbon Neutrality" goals, driving the deep integration in differences.” We refined internal control systems and processes, optimized the structure of
of green development into production and operations. On the production side, we have opti- the Board of Directors’ six specialized committees, and enhanced decision-making efficiency
mized our energy structure, improved the utilization efficiency of clean energy sources such and execution strength, becoming decisive executors, proactive problem-solvers, and effective
as solar photovoltaics, and advanced workshop-level energy-saving renovations, successfully practitioners. In addition, we improved information disclosure mechanisms to safeguard the
being awarded the title of “National Green Factory.” On the product side, we have focused on rights of shareholders and stakeholders to information and participation, increased corporate
the transition to electrification, increased R&D investment in new energy powertrain systems, transparency, and won the “SSE Eagle Gold Quality” Elite Board Secretary Award of Shanghai
and launched multiple smart mobility products featuring long range and low energy consump- Securities News. Furthermore, we have strengthened compliance management, strictly ad-
tion. At the same time, we have deepened our strategic cooperation with BMW, integrating hering to market regulations and industry standards. By integrating compliance principles into
world-class manufacturing standards into the entire process of green product development. every aspect of production, sales, and R&D, we have fortified our defenses in risk management
Through concrete actions, we have demonstrated that green transformation is not only a social and ethical business operations, elevating our corporate governance to new heights.
responsibility but also a vital source of our core competitiveness.
The Year of the Horse (Bingwu), galloping toward the horizon. In 2026, standing at a new
starting point, we will remain steadfast in our ESG commitment, riding the wave of “dig-
italization” and scaling new heights of “innovation”. We will continue to deepen green
Forging ahead with collaboration to jointly foster an “ecosystem” for intelligent manufacturing, achieving breakthroughs in electrification, intelligence, and
shared value digitalization, while focusing on cutting-edge initiatives such as the “Industrial Brain” for
To make significant contributions, a Company must also shoulder significant responsibilities. high-end motorcycles. Furthermore, we will continue to practice collaboration and mu-
LONCIN’s development has always been inseparable from the hard work of all employees, the tual benefit, pooling resources to build a more resilient industrial ecosystem. Moreover,
support of our partners, and the generous support of all sectors of society. In the social dimen- we will continue to improve corporate governance, ensuring standardized operations to
sion, we practice the values of “collaborative development and contribution-oriented,” building safeguard the Company’s long-term development, striving to become a benchmark sus-
a four-in-one value-sharing system encompassing “enterprise—employees—partners—soci- tainable enterprise in the industry.
ety.” For our employees, we refine incentive mechanisms and welfare systems, promote visual
Soaring Ambitions to Embark on a New Journey, United Strengths to Guide LONCIN to
management and digital office practices, enabling them to grow and realize their value in a safe
Greater Achievements. Let us unite in purpose and pool our collective wisdom, demon-
and healthy working environment. For our partners, we leverage synergies to achieve resource
strating our commitment through hard work and driving development through innovation.
sharing and complementary strengths, fostering a development synergy that delivers a "1+1>2"
We will deliver an outstanding ESG performance to repay the trust of all shareholders and
effect. For society, we deepen our commitment to public welfare, focusing on rural revitalization,
the support of our partners. Together, we will contribute greater LONCIN strength to the
education support, and care for vulnerable groups. Meanwhile, we drive regional economic de-
sustainable development of the industry and the progress of society!
velopment through industrial empowerment, demonstrating the responsibility and commitment
of a national manufacturing enterprise.
Loncin Motor Co., Ltd.
Chairman
Ltd. Environmental,Social,
Social,and
andGovernance
Governance(ESG)
(ESG)Report
Report2025
About LONCIN
Products and Businesses
Company Overview Product Introduction
Loncin Motor Co., Ltd. (SSE stock code: 603766) was established in 1993
Motorcycle and Engine Products
and listed on the Shanghai Stock Exchange in 2012. Headquartered in
Chongqing, the Company has over 10,000 employees and more than Independent The Company takes the transformation and upgrading of its independent brands as its core strategic engine. Centered on consumers’ real needs and guided by
regions across the globe. brand domain coverage", and forges a multi-dimensional brand layout featuring "high-end leadership, segment-focused deep cultivation and global expansion", to achieve
the synergistic enhancement of brand value and core market competitiveness.
The Company has set "becoming a global leader in intelligent motorcycle
mobility" as its development goal, and systematically built a brand VOGE: VOGE upholds the philosophy of "Far & Beyond Quality" throughout its whole series of products. Taking the European market as its strategic core, the brand
ecosystem for VOGE and LONCIN featuring "dual-core parallel development,
extends its influence globally, establishing an advantageous market layout covering "Europe and Central & South America", while continuously extending its reach to
tiered operations and full-domain coverage". The Company’s production
and sales volume of motorcycles exceeded 1.6 million units, motorcycle regions such as Africa and Southeast Asia. It is committed to growing into a leading Chinese motorcycle brand with global influence.
engines 3.3 million units, and general-purpose machinery over 4.4 million LONCIN: With a core strategy of full-spectrum coverage and full-scenario penetration, the company has built a three-dimensional product matrix featuring
units. These businesses have ranked among the top in the industry for “entertainment leadership, scenario extension and rigid-demand support”. It has formed a full-category product ecosystem covering two-wheelers, three-wheelers,
many consecutive years, and the Company has also maintained a leading and four-wheelers, creating a one-of-a-kind full-scenario mobility ecosystem in the industry to fully meet all-around demands from recreation to practical application.
position in the industry in terms of export earnings for many years.
The Company is the first enterprise in the industry to pass the Motorcycle
National Safety Technology Exemption Certification. It owns a “National
Enterprise Technology Center”, a “National Industrial Design Center”, and
a “National Accredited Laboratory”. It has been awarded honors such as
“Most Competitive Market Brand”, “Top 10 Innovative Enterprises in China
Industrial Design”, “Top 100 Valuable Companies Listed on the Main Board
in China”, and “National Green Factory”. Its subsidiary engine company
has been recognized as an “Excellence-level Smart Factory”.
Faced with the new industrial landscape, LONCIN upholds the vision of
"becoming a leader in the smart light mobility industry" and has launched
its core strategy of "dual excellence in quality and intelligence". In 2026,
guided by the action plan of “Brand Elevation, Intelligent Empowerment,
Dual-power Strategy, and Global Layout,” and upholding the philosophy Independent Motorcycle Brands
of “Focus and Precision, Pragmatism and Innovation,” LONCIN will drive
a qualitative shift from “exporting products” to “exporting brands and
systems,” build a global ecosystem, and achieve high-quality growth.
Cooperative Since 2005, the Company has established a stable strategic cooperative partnership with BMW Motorrad, with the dimensions of cooperation continuously deepened
and expanded. The collaboration has extended from single-cylinder engines to twin-cylinder engines and complete motorcycles, forming a stable model of batch
products delivery and collaborative development.
Engine The Company has built the most complete and in-depth power platform in the industry. We have achieved full engine coverage across all product categories History of Development
(two-wheelers, three-wheelers, four-wheelers) and all displacements (100cc-1000cc). More crucially, guided by a platform-based and modular R&D philosophy,
products we efficiently apply cutting-edge multi-cylinder technologies for medium and large displacements to our full product portfolio. At the same time, scenario-
specific dedicated R&D delivers in-depth empowerment to segmented markets, including three-wheelers and four-wheelers. This makes LONCIN the only
enterprise in the industry capable of leveraging its proprietary powertrain system to simultaneously support the rapid development and cost optimization
of complete vehicle products for all scenarios—commuting, recreation, off-road, freight transport, and high-end all-terrain vehicles. LONCIN has established
core competitiveness through vertical integration from core power systems to end-use complete vehicles. Furthermore, through systematic patent strategies,
LONCIN has established a robust intellectual property framework, establishing strong competitive advantages in technology and market positioning, thereby
providing a solid foundation for the long-term growth of its business.
was established and the first motorcycle engine was launched.
Engine Products
mark in China”.
General-purpose Engine Products 2004 LONCIN motorcycle was awarded the title of “Famous Brand in
China”.
The Company has established a diversified product portfolio covering small household generator sets, non-road engines, garden machinery end products, 2005 LONCIN started to cooperate with BMW in Germany, and the
and energy storage power supplies. In terms of business development, the Company has built its first production line for ride-on lawn mowers. By partnering LONCIN technology center was recognized as a “ National Tech-
with Husqvarna, a world-renowned brand, the Company has realized the mass production and market launch of ride-on lawn mowers, marking a significant
nology Center”.
strategic breakthrough for the Company in garden end products.
emption Certification.
BMW.
General-purpose Engine Products
the actual controller. The refreshed shareholder structure has re-
Business Layout vitalized the Company’s development momentum and ushered in
a new chapter of growth.
Adhering to the concept of global development, the Company has built a sound industrial and channel layout. In terms of industrial layout, LONCIN has established six major manufacturing
bases in Chongqing, Henan, Guangdong, Zhejiang, Jiangsu, and other regions across China, as well as in Vietnam, forming a global production network that covers key markets and 2025 LONCIN marked the 20th anniversary of its collaboration with
provides a solid guarantee for product supply. Regarding channel layout, the Company has built a network of over 2,000 sales channels, extensively covering developed countries in BMW Motorrad.
Europe and America, as well as various developing nations. With diversified market penetration, its export revenue accounts for over 60% of the total, and its global operation capacity
has been steadily strengthened.
Honors and Awards
Enterprises Ranked 470th Enterprises in Chongqing Chinese Listed Companies to Promoting the High-quality Development of
the Private Economy in Chongqing Economic
and Technological Development Zone
National Green Factory Excellence-level Smart Factory Chongqing Future Factory 2025 Lighting for Good Third Guoxin Cup ESG Golden Bull
Award Enterprise for Good Award Top 100
Corporate Culture 2025 ESG Performance Highlights
Corporate Vision Global Influence, Centuries of Vitality Economic Performance
Brand Vision A Leading Brand with a Low-Carbon Power System and Intelligent Products
Operating income Total assets
Corporate Mission Creating Speed & Energy, Pursuing Excellence Beyond Limits, Benefiting Humanity,
Crafting Dynamic Beauty via Technology
million million
Corporate Values Customer First, Striving for Excellence, Collaborative Development, Contribution-
oriented
Development Goal Becoming a Global Leader in Intelligent Motorcycle Mobility
Corporate Philosophy Attain to the Broad and Great while Addressing the Delicate and Minute Environmental Performance
Core Concepts Focus, Precision, Pragmatism, Innovation Environmental protection Cumulative photovoltaic Cumulative carbon Total recyclable
investment power generation emission reduction waste
Methodology Cognition, Strategy, Action
Development Strategy Focus on Core Business, Bigger and Stronger, More Specialized and Thorough
Strategic Initiatives Brand Excellence, Product Leadership, Precision Channel Management, Digital and
Intelligent Driven, Global Operations
Six Principles of Standardization, Digitalization, Automation, Lean Manufacturing, Visualization, and
Manufacturing Intelligence Social Performance
Supply Chain Strategic Guidance, Industrial Chain Development & Strengthening, Digital and
Employee physical Number of employee Number of safety Number of employees
Management Philosophy Intelligent Empowerment, Joint Contribution and Shared Benefits examination coverage rate training sessions training sessions in safety training
Talent Philosophy Integrity First, Learning as the Priority, Competence as the Foundation, and
Performance as the Ultimate Goal 100 % 4,369 470 2,478 participant-
times
patents granted
Number of trademarks
obtained
R&D
investment
June 2025 LONCIN's vision-only intelligent lawn mower robot made its global debut at the 2025
Eisenach Garden & Horticulture Exhibition in Germany.
August 2025 LONCIN's EP350 portable energy storage power supply wins the 2025 Red Dot Award
September 2025 20th Anniversary of Cooperation between LONCIN and RUSI of the Philippines Governance Performance
November 2025 The 2025 Milan Motorcycle Show (EICMA) concluded successfully, with LONCIN & Number of board Percentage of Number of anti-corruption
VOGE making a distinguished appearance at EICMA 2025. participated in the 8th meetings held independent directors training sessions
China International Import Expo (CIIE).
December 2025 LONCIN marked the 20th anniversary of its collaboration with BMW Motorrad. %
Responding to the United Nations Sustainable Development Goals (SDGs)
LONCIN adheres to sustainable development as its core guiding principle, and seamlessly integrates the key elements of Environment, Social, and Governance with the United Nations Sustainable Development Goals (SDGs) for 2030. By
continuously improving its governance system and innovating practical approaches, the Company has consistently enhanced its comprehensive management effectiveness, proactively fulfilled its social responsibilities, and taken concrete
steps to advance the implementation of the global Sustainable Development Goals. It is forging steadily ahead on the path towards high-quality sustainable development.
Chapter Chapter
Value Realization Safeguarding the Development of II. Empowered by Innovation,
IV. People-Oriented Development
the Green Chain Forging Outstanding Products
for Social Harmony 4. United in Purpose, Spreading
LONCIN’s Warmth 4. United in Purpose, Spreading
LONCIN’s Warmth
Value Realization 1. Wholehearted Loyalty to the
IV. People-Oriented Development Party, Steering LONCIN on a I. Laying a Solid Foundation for
for Social Harmony 4. United in Purpose, Spreading
Steady Course Governance, Ensuring Steady &
LONCIN’s Warmth
LONCIN Compliance
IV. People-Oriented Development
for Social Harmony 3. Life First, Safety Foremost 3. Green Operations and Low- III. Green Intelligent Manufacturing,
carbon Production Leading the Low-Carbon
Transformation
Value Realization III. Green Intelligent Manufacturing,
IV. People-Oriented Development 2. Responding to Climate Change,
for Social Harmony 4. United in Purpose, Spreading Leading the Low-Carbon
Protecting Our Earth
LONCIN’s Warmth Transformation
II. Empowered by Innovation,
IV. People-Oriented Development 1. Employee Empowerment and 3. Comprehensive Quality Forging Outstanding Products
for Social Harmony Value Realization Management Across the Entire
Supply Chain, Strengthening the II. Green Intelligent Manufacturing,
Foundation of Quality; Leading the Low-Carbon
III. Green Intelligent Transformation
Manufacturing, Leading the 3. Green Operations and Low-
Low-Carbon Transformation carbon Production
carbon Production III. Green Intelligent
III. Green Intelligent Manufacturing, Leading the
Manufacturing, Leading the 4. Continuous Innovation-Driven 4. United in Purpose, Spreading Low-Carbon Transformation
Low-Carbon Transformation Green Development LONCIN’s Warmth
IV. People-Oriented 1. Employee Empowerment and 1. Empowered by Intelligent II. Empowered by Innovation,
Development for Social Value Realization Innovation, Jointly Writing a New Forging Outstanding Products
Harmony Chapter in the Industry; III. Green Intelligent
Green Development Carbon Transformation
About
Governance
LONCIN
ESG Governance
ESG Governance Structure
LONCIN actively responds to the United Nations Sustainable Development Goals. It has established a well-targeted, scientific,
rigorous, and forward-looking ESG governance framework, forming a clearly defined three-tier management system consisting
of the "Board of Directors – ESG Leading Group – ESG Working Group" with distinct powers and responsibilities. The Company
deeply integrates ESG principles into its business decision-making, continuously optimizes its management system and enhances
management capabilities, steadily advances ESG practices throughout its operations and the entire value chain, and joins hands
with employees, customers, partners, and other stakeholders to jointly move toward a sustainable future.
Be responsible for approving ESG strategies, objectives
Decision-making and annual reports, and supervising the implementation
Body of overall ESG objectives.
Board of
Directors
Be responsible for identifying ESG-related risks, formulat-
ESG ing development plans and promoting daily work;
Leading Management
Group Be responsible for regularly reporting key ESG matters
and implementation progress to the board of directors;
Be responsible for implementing ESG initiatives, formulat-
ing relevant systems and plans;
ESG Working Operational
Group Body Be responsible for daily operation, collecting and organiz-
ing ESG information, and preparing relevant reports.
LONCIN ESG Structure Chart
Stakeholder Communication
In-depth participation of stakeholders serves as a key driver for the Company to continuously elevate its ESG management standards. The Company has always attached great importance to communication and collaboration with all stakeholders. It proactively collects and responds
to their expectations and suggestions on the Company’s ESG practices through diverse channels, and has established a diversified communication and interaction mechanism. In light of its own business characteristics, the Company has identified its core stakeholder groups, which
mainly include employees, customers, investors, government and regulatory agencies, the media, industry associations, cooperative suppliers, and communities.
Stakeholders
Government / Shareholders / Supplier Customer Employees Community The Media, Social
Regulatory Agencies Investors Organizations and Other
Stakeholders
Compliance with Laws and Compliance and Risk Honest Cooperation and Provision of High-quality Employee Training and Community Service and Corporate Social
Regulations Management Fair Trade Products Development Philanthropy Responsibilities
Implementation of National Improvement of Mutual Development Integrity in Business Employee Health and Fulfilling Social Financial Performance
Policies Corporate Governance Safety Responsibilities
Structure Supply Chain Quality Customer Openness and
Expectations Compliant and Lawful Sustainability Service Remuneration and Transparency of
and Appeals Operation Product Quality and Benefits Information
Safety Information and
Environmental Protection Security Employee Diversity Service and Product
Protection of Information
Shareholders' Interests After-sales Service Employee Life Care
Public Disclosure of General Meeting Supplier Conference Customer Feedback Employee Representative Public Welfare Activities Official Website
Information Collection Conference and WeChat Official
Annual Reports and Periodic Supplier Review Participation in Community Account
Debriefing and Information Releases Customer Satisfaction Employee Training Building
Communication of Daily Bidding Meeting Survey Media Interviews and
Operations Official Website Investor Employee Hotline Providing Jobs Cooperation
Communication Relations Column Customer Complaint
Channels Supervision and Hotline Chairman Mailbox Improvement of Local Information Disclosure
Assessment Investor Hotline and Mailbox Infrastructure
Customer Online and Support for Employees in News Promotion
Interview and Reception Investor Reception Day Offline Activities Difficulty
Green and Low Carbon Performance Briefing Staff Activities
Operation
Analysis of Double Materiality Topics
The assessment of double materiality topics serves as the core prerequisite for ESG report preparation and the development of management systems.
Its key function is to accurately identify topics that exert a significant impact on the enterprise’s sustainable development, stakeholder decision- LONCIN Double Materiality Topic Matrix
making, as well as environmental and social development, thereby clarifying management priorities and ensuring the quality of disclosures. This
process reflects an enterprise’s systematic ESG governance capacity, driving it to shift from the compliance baseline of passively meeting regulatory Environment Society Governance
requirements to forward-looking planning that proactively integrates ESG into its development strategy. For enterprises, the assessment enables
them to mitigate core risks, optimize resource allocation, and enhance brand trust and core competitiveness. Such a process demonstrates that an
enterprise has integrated the ESG principles into its development strategy, possesses scientific governance capabilities and a sense of responsibility,
and is committed to achieving the synergistic coexistence of corporate and social value, which aligns with the core requirements of ESG disclosure. Stakeholder Communication Leagership in
and Cooperation Party Building
LONCIN has continuously optimized its ESG double materiality topic analysis process. By integrating core factors including stakeholders’ expectations, Labor Management
Materiality of Impacts on the Economy, Society and the Environment
Employee Training
national conditions and policies, industry characteristics, and the Company’s development strategy, the Company has identified the materiality of
and Development Business Ethics and
different topics through multi-dimensional communication. It then conducted a comprehensive analysis from the dual dimensions of each topic’s
Corgorate Governance
impacts on the enterprise and its stakeholders, and established a complete double materiality topic matrix. This matrix clearly defines the priority of Information Security and
Privacy Protection Employee Health
topics, provides scientific guidance for the precise allocation of ESG resources and the advancement of key topics, further strengthens the systematicity and Safety
and pertinence of the Company’s ESG governance, and highlights its firm determination to practice the concept of sustainable development.
Biodiversity Conservation Circular Economy Industry
Cooperation
Product Quality and Safety
Analysis processes for double materiality topics:
Compliance Operation Risk Management
Boosting National and Use of Resources Innovation
Economic Development and Energy and R&D
In accordance with relevant domestic and international sustainable development standards, combined with industry
policies and regulatory requirements, and based on the Company’s business value chain and actual operational character- Toxic Emissions and Waste
istics, sort out and preliminarily identify ESG topics highly relevant to the Company’s development. Supply Chain Management
Customer Service Intellectual Property
Preliminary Protection
identification
of topics Sustainability/ESG
Conduct assessments on the preliminarily identified ESG topics based on the principle of “double materiality”: Management
Rural Revitalization
Impact materiality assessment Digital Transformation Carbon Emissions
Anti-corruption Cleantech Opportunities
Evaluate the potential positive and negative impacts of each topic from the environmental, social and economic dimen- Integration of
sions, and analyze the severity, scope and irreversibility of such impacts. Environment Management Production,Learning
System and Researching
Financial materiality assessment
Double Analyze the impacts of each topic on the Company’s financial performance, and assess the likelihood of occurrence of
materiality relevant risks and opportunities, as well as their effects on business continuity and strategic development.
assessment
Integrate the results of impact materiality and financial materiality assessments, screen and confirm ESG topics Materiality to Corporate Finance
with double materiality, and construct a double materiality topic matrix, to clarify the core directions for subsequent
information disclosure, optimization of management practices and enhancement of responsible value.
Topic
confirmation
and integration
Laying a Solid Foundation for
Governance
Ensuring Steady & Long-Term
Development Through Compliance
LONCIN on a Steady Course
Operational Bottom Lines
Strengthening Value Communication
Response to the United Nations SDGs:
Wholehearted Loyalty to the Party, 1.2 Party Member Composition
Steering LONCIN on a Steady Course Classified by Length of Classified by Age
Party members of the Company are appointed to various important and key
Party Membership
positions. Among them, 36 serve as middle and senior management cadres,
LONCIN integrates the Party’s leadership into every aspect of corporate governance, strengthens the 2.46% 2.08% 2.77%
accounting for 19.78% of the Company’s middle and senior management cadres. 12.00%
building of primary-level Party organizations, and builds a robust defense line for integrity and risk pre-
Party members also make up a certain proportion in positions such as R&D (7.92%), 21.23%
vention and control. This ensures the Company’s strategies are in step with national development strat- 23.08% 28.31%
production (0.91%), and sales (7.71%), playing a highly important exemplary and
egies and guarantees its steady and long-term development.
leading role.
The ranks of Party members are mainly composed of veteran Party members. Party
members with a Party standing of 10 years or more account for more than 50% of 39.69%
the total. They serve as the backbone and stabilizing force of the Party organization. 22.77%
concentrated contingent of core backbone members. Party members born in the 20+ Years 10-19 Years 6-9 Years Post-60s Post-70s
The Party Committee of LONCIN has 8 Party branches within Chongqing, 1 Party branch outside Chongq- backbone of the Party organization and infusing it with vitality. Those born in the 1970s (21.23%) serve as experienced managers, while those born in the
ing, and 1 sub-Party Committee outside Chongqing (which governs 3 Party branches). As of December 1960s and 2000s account for a smaller proportion. The overall structure is olive-shaped, ensuring an orderly succession.
orderly manner. The Company has a sufficient and well-structured reserve of prospective members, including Party membership applicants and activists
LONCIN Party Committee for Party membership. Currently, there are 18 Party membership applicants and 35 activists for Party membership, and the development of the reserve
contingent of Party members has yielded sound results.
Henan LONCIN Party Committee
LONCIN Functional Platform Party Branch
LONCIN Technology Center Party Branch
LONCIN places great emphasis on Party-building activities. In 2025, Party branches conducted themed Party Day activities, covering topics such as ideological
LONCIN General-purpose Engine
LONCIN Motorcycle Components
LONCIN Motorcycle Production
Guangdong LONCIN Company
Engine Company Party Branch
Engine Components Company
Comprehensive Party Branch
guidance, integrity education, business integration, innovation empowerment, and collaboration with mass organizations. In particular, through initiatives
Business Unit Party Branch
such as Party building along the industrial chain, the supportive role of Party building in the Company’s high-quality development has been significantly
Department General Assembly Party
LONCIN Motorcycle
Henan LONCIN Administrative and
Department Welding Party Branch
Henan LONCIN Manufacturing
enhanced.
Henan LONCIN Manufacturing
Party Branch
Party Branch
Party Branch
Party Branch
Logistics Party Branch
Branch
The LONCIN Party Committee prioritizes political theory study as its primary task. Through systematic and routine learning mechanisms, it continuously
strengthens the ideological and theoretical foundation of the Party member ranks. In 2025, focusing on the latest directives and major deployments of
the Party Central Committee, the Party Committee organized all branches to conduct activities such as lectures on the spirit of the Two Sessions, study
and discussion on the spirit of the Fourth Plenary Session of the 20th CPC Central Committee, and specialized study sessions on implementing the Eight-
point Regulation of the CPC Central Committee. These activities cumulatively covered over 600 Party members. These activities guide Party members to
fully comprehend the decisions and arrangements of the Party Central Committee, strengthen the “Four Consciousnesses”, enhance the “Four-sphere
Party Organization Structure Chart Confidence”, and ensure the “Two Upholds”.
Case Innovating Party Building Activity Forms
The Party Committee of LONCIN adheres to integrating Party building work into the entire process of production and operations. It
The Company’s Party Committee emphasizes innovation has fully implemented the creation of “Model Post for Party Members” and “Responsibility Zone for Party Members” across all Party
in formats and diversification of platforms. In 2025, the
branches, guiding Party members to play a vanguard and exemplary role in key positions such as technical research, production
Company innovated the forms of its Party building work
and broadened learning channels. In collaboration with frontlines, and market development. Each Party branch, based on its specific business characteristics, has established Party mem-
the “Yima Dangxian” Party Branch of the Baishiyi Court of ber technical research teams and Party member task forces to tackle key challenges and difficulties in production and operations.
Jiulongpo District, it invited Comrade Liu Ping, a National
People’s Congress deputy, to visit the Company and In addition, the Company actively explores new models for Party building within the industrial chain, using Party building as a link
deliver a special lecture on the spirit of the Two Sessions. to promote the coordinated development of upstream and downstream enterprises. Each Party branch proactively engages in joint
This activity effectively guided Party members to deeply Party building activities with partners such as Yuanping Machinery. Through joint initiatives such as themed Party days, technical
grasp the decisions and plans of the Party Central exchanges, and business seminars, the Company promotes the deep integration of Party building work with the development of
Committee, and to effectively transform the outcomes of
the industrial chain. Through Party building within the industrial chain, resources have been effectively integrated, injecting power-
their studies into a powerful driving force for promoting
ful momentum into enhancing the overall competitiveness of the industrial chain.
the high-quality development of the Company. Lecture on the Spirit of the “Two Sessions”
Case Joint Party Building Drives Industrial Synergy Development
Case Integrity Warnings: Strengthening the To strengthen the leading role of Party building and foster a new pattern of open and coordinated industrial Party
Disciplinary Defense building, the Company organized a symposium in 2025 themed “Integrating Party Building with the Supply Chain: A
Red Engine Empowering High-quality Development.” During the event, the Company engaged in in-depth discussions
The Company’s Party Committee has always placed Par- with the heads of Party organizations from seven core supply chain enterprises, including Degang Technology, Taicang
ty conduct and integrity building at the forefront, adher- Technology, and Yinjiao Brake, and signed an agreement on joint Party building for the industrial chain. At the same
ing to the principle of prioritizing education and focusing time, the Company conducted a Party-building exchange activity with the Party branch of Humi Technology to learn
on prevention. In July 2025, the Company organized Par- from advanced practices and promote mutual improvement. Through joint Party-building efforts, the Company is driving
ty members and cadres to visit the Chongqing Party Con- organizational collaboration, resource sharing, and mutually beneficial development.
duct and Integrity Education Base for immersive warning
education. Through viewing exhibition panels of typical
cases, listening to statements made by serving prison-
ers, and watching educational films, Party members and
cadres underwent a profound ideological cleansing and
spiritual awakening. Following the activity, Party mem-
bers and cadres engaged in discussions and wrote re-
flective essays, guided to take these cases as lessons,
keep the warning ever-present, and remain vigilant in up-
holding integrity and self-discipline at all times. Through
education and guidance, Party members and cadres are
encouraged to cultivate a sense of reverence, maintain
caution, and adhere to ethical boundaries, thereby fos-
tering a political environment characterized by integrity
and uprightness.
Party-building Activities Integrated with Business
Integrity Education
Building a Solid Foundation for LONCIN LONCIN maintains a standardized and efficient governance operation, strictly fulfilling its duties in accordance with relevant laws and regulations such
as the Company Law and the Governance Code, as well as the provisions of the Company’s Articles of Association. In 2025, in accordance with relevant
LONCIN has continuously optimized its corporate governance structure. By establishing six specialized commit- regulations and the Company’s corporate governance requirements, the Company held a total of 26 meetings, which effectively guaranteed scientific
tees, maintaining frequent governance meetings, and promoting diversity in the composition of the Board of decision-making and compliant operation of the Company’s major matters.
Directors, the Company has built a modern corporate governance system characterized by clear delineation of
powers and responsibilities, scientific decision-making, and effective checks and balances. This has provided a
solid institutional guarantee for the Company’s standardized operations and sustainable development. LONCIN Governance Structure Conference in 2025
Board of Directors Meeting Number
In order to establish a more scientific and efficient corporate gover- General Meeting 3
nance system, LONCIN has optimized the composition of the Board of
Directors, actively promoted diversity, and established a governance Board of Directors 9
structure that maintains a balance between age and professional
LONCIN strictly adheres to laws, regulations, and supervisory requirements such as the Company Law of the background. Members of the Board of Directors range in age from 30
Audit and Risk Control Committee 4
People’s Republic of China (hereinafter referred to as the Company Law) and the Code of Corporate Gover- to 60, creating a tiered structure that combines the succession of ex-
nance for Listed Companies (hereinafter referred to as the Governance Code), fully integrating compliance
Nomination Committee 3
perience with the dynamism of innovation; furthermore, Members of
requirements into corporate governance processes to continuously enhance the standardization of operations. the Board of Directors hold outstanding academic qualifications, with
To meet the needs of business development, on February 14th, 2025, the Company systematically optimized
Remuneration and Appraisal Committee 3
over 80% holding a master’s degree or higher.
the specialized committees under the Board of Directors, establishing six specialized committees: the Strategy Strategy and Investment Committee 1
and Investment Committee, the Audit and Risk Control Committee, the Budget Management Committee, the The Company's Board of Directors strictly adheres to corporate gov-
Related Transactions Committee, the Nomination Committee, and the Remuneration and Appraisal Committee. ernance standards. In 2025, the Board of Directors comprises nine Budget Management Committee 1
This adjustment aims to clarify the boundaries of authority and responsibility for each committee, fully leverage members, three of whom are independent directors. The Company's
their professional decision-making and supervisory functions, and thereby establish an operational mechanism directors possess diverse professional backgrounds covering multiple
Related Transaction Committee 1
characterized by clear delineation of authority and responsibility, effective checks and balances, and scientific fields including finance, management, law, engineering and science,
decision-making among the General Meeting, the Board of Directors, and the management team, thereby effec- providing robust professional support and multi-faceted intellectual
Special Meeting of Independent Directors 1
tively safeguarding the legitimate rights and interests of the Company and all shareholders. input to meet the diverse requirements of the Company's strategic
decision-making and business development.
The proposals regarding the addition and adjustment of committee members were reviewed and approved at
the fifth meeting of the fifth Board of Directors on March 4th, 2025. This marks a further refinement of the Com-
pany’s governance structure, laying a solid institutional foundation for enhancing the efficiency and scientific List of Board Members and Their Positions
nature of decision-making and meeting the requirements of the new stage of development.
Name Genders Education Profession Position held
Master's
General Meeting Strategy And Investment Committee Li Yao Male
degree
Management Nomination Committee , Strategy and Investment Committee
Hu Xianyuan Master's Engineering Remuneration and Assessment Committee, Strategy and Investment Committee, and Budget Management
Male
degree Committee
Audit and Risk Control Committee
Huang Peiguo Male Master's Economics Strategy and Investment Committee and Related Transaction Committee
degree
Nomination Committee Jiao Yiyang Male Master's
Science
Audit and Risk Management Committee, Strategy and Investment Committee and Related Transaction
degree Committee
Board of Directors Master's
Remuneration and Appraisal Committee Liu Zhao Male Engineering Audit and Risk Management Committee,Strategy and Investment Committee
degree
Master's Business
Gong Hui Male Strategy and Investment Committee
degree Administration
Budget Management Committee
Liu Jianxin Male PhD Management Audit and Risk Management Committee, Nomination Committee, Strategy and Investment Committee,
Related Transaction Committee and Independent Director
Management Related Transaction Committee Audit and Risk Management Committee, Remuneration and Assessment Committee, Strategy and In-
Male Master's Accounting
Chen Dingwen degree vestment Committee, Budget Management Committee, Related Transaction Committee and Independent
Director
Audit and Risk Management Committee, Nomination Committee, Remuneration and Assessment Commit-
LONCIN Corporate Governance Structure Chart Yang Zeyan Male Master's tee, Strategy and Investment Committee, Budget Management Committee, Related Transaction Committee
degree Law
and Independent Director
Steady Development with Strict Adherence to
Operational Bottom Lines
LONCIN has established a multi-dimensional compliance governance framework covering risk management, internal controls, business ethics, anti-corruption, and
data security and privacy protection. Through organisational restructuring, the refinement of policies and procedures, technological empowerment and regular
training, the Company has comprehensively enhanced its risk prevention and control capabilities and compliance standards, thereby providing a solid foundation
for high-quality development.
LONCIN has established a comprehensive risk management system covering the entire process—from
the system operates systematically through six functional modules:
To improve risk management effectiveness, LONCIN implemented significant optimisations to its risk management framework in 2025. The Company restructured the former
Top-level design and in- stablishing the institutional foundations for a comprehensive
Audit Committee into the Audit and Risk Management Committee, and revised the corresponding Rules of Procedure for the Board’s Audit and Risk Management Committee
stitutional development: risk management and internal control framework.
to clarify its powers and responsibilities, whilst further refining the working mechanisms of the Audit and Risk Management Committee and the Audit Department. Under
the leadership of the Board of Directors, the Company has established a clear “Three Line of Defence” risk management organisational structure. The first line of defence
comprises the various business departments, which are responsible for identifying and controlling risks in their day-to-day operations; the second line of defence consists of Implementing pre-emptive measures through legal risk
Prevention in advance and
the Company's Risk Management Centre, which carries out professional risk monitoring and compliance management; the third line of defence consists of the Internal Audit assessments of contracts, litigation and major projects to
proactive forecasting:
Department, which is responsible for auditing and providing oversight of the effectiveness of the first two lines of defence. identify and mitigate potential risks at source.
To ensure the effectiveness of the internal control system, the Company strictly adheres to regulations such as the Basic Standards for Enterprise Internal Control and Strengthen during-process control through routine oversight
continuously refines management systems such as the Internal Audit System. Furthermore, it systematically integrates key elements including risk prevention and the delineation In-process control and mechanisms such as contract review, standardised contracts,
of responsibilities and authorities into internal control processes, thereby promoting the efficient operation of the entire internal control system. process supervision: and the monitoring and follow-up of major matters, as well as
through vulnerability assessments.
By leveraging IT tools such as ERP and big data to integrate
Technical empowerment
Board of Directors' Audit production and operational data, achieving real-time risk
and intelligent monitoring:
and Risk Management monitoring and intelligent early warning.
Committee
LONCIN Audit Department Independent verification Verifying the effectiveness and compliance of the internal
Audit Director and audit supervision: control system through audit management.
LONCIN has established a three-tier risk management Risk Management Centre
and supervision organisational structure characterised Deputy General Manager
for Risk Management Establish mechanisms for reporting, investigation and
by clear hierarchy and well-defined responsibilities. Post-incident accountability accountability; step up anti-fraud efforts; strengthen the
Under the leadership of the Audit and Risk Manage- Audit Specialist and integrity governance: defences of integrity and self-discipline; and ensure a closed-
Supervision Department
loop approach to post-incident resolution.
ment Committee, which reports to the Board of Direc- Legal Department
Director of Legal Affairs Director of Supervision
tors, the system is implemented in practice by the Risk Department
Management Centre. This framework represents LON-
CIN’s management philosophy of deeply embedding Legal Specialist Supervision Specialist
This multi-dimensional risk management framework, which encompasses decision-making, oper-
risk management and internal oversight into corporate
ations and supervision, has effectively enhanced the Company's strategic resilience, operational
governance and business operations, providing a solid Subsidiary transparency and compliance standards in the face of market volatility, thereby providing a solid
Director of Risk Management, Legal Specialist,
organisational foundation for the Company’s compli- foundation for high-quality development.
Supervision Specialist,Part-time Supervisor
ant operations and steady development.
Note: For subsidiaries that have not yet established dedicated risk management positions, the Risk
Management Centre provides shared services for the relevant operations.
In order to improve all employees' awareness of risk prevention and control as well as
their professional competence, the Company has established a regularised training 2.1 Integrity system framework
programme dedicated to risk management. The training comprehensively covers Whistleblowing channels:
topics such as trade compliance risks, tariff war risk prevention, sales compliance The Company strictly complies with the Company Law and the Criminal Law of the
risks, risks associated with foreign labour regulations, contract management risks, People’s Republic of China (hereinafter referred to as the “Criminal Law”) and other Whistleblowing email: tousu@loncinindustries.com
personal data protection risks, tendering and procurement, and the management of relevant laws and regulations. On this basis, and taking into account the Company’s
related-party transactions. The Company has organised systematic, in-depth training specific circumstances, it has formulated and implemented internal management Whistleblowing mailbox: The Company’s Supervision Department
for staff in key roles such as legal affairs, international operations, human resources systems such as the Detailed Rules for the Implementation of the Anti-Fraud Man- is responsible for managing the whistleblowing mailbox.
management and digital technology, thereby effectively promoting the integration agement Regulations, the Whistleblowing and Complaints Management Regulations,
of risk prevention and control principles into daily work practices. In 2025, the the Integrity Management Regulations, the Internal Supervision Management Mea-
Company conducted a total of seven specialised risk management training sessions, sures, the Internal Accountability System and the Measures for the Supervision of Through a 24-hour response mechanism and standardised documentation manage-
significantly improving the risk prevention capabilities of all staff and strengthening Tendering Activities. ment, this system both safeguards the legitimate rights and interests of whistleblowers
the defences underpinning the Company’s sound operations. and provides management with a formal channel for understanding conditions on the
In order to foster a business environment characterised by integrity and probity, ground, thereby significantly enhancing the Company's risk prevention and compliance
the Company has established clear and stringent anti-corruption compliance require- governance standards.
ments for both its employees and business partners. It strictly prohibits any form of
Case Prevention of Contract Performance Risks bribery or the improper transfer of benefits, and has strengthened its integrity safe-
guards through the implementation of a systematic framework of policies and pro-
On April 25th, 2025, the Company conducted a specialised training session
on targeted risk prevention, focusing on key aspects of international trade
cedures. The Company's human resources and corporate management departments
have established a comprehensive integrity record management system covering all
policy and contract fulfilment. The Company organised a specialised staff, incorporating employees' conduct and records regarding integrity and self-dis-
In 2025, the Company organised a series of targeted training initiatives centred on the
training session on “Prevention of Contract Performance Risks Under Tariff cipline into the key evaluation criteria for performance assessments, appointments
themes of professional integrity and risk management, which effectively improved the
Wars”, attended by a total of 45 participants, primarily comprising legal and removals from post, and promotions. This initiative effectively encourages staff
compliance awareness and operational capabilities of the relevant staff.
staff and personnel involved in international business from the General to cultivate a sense of compliance from the ground up and enhances their ability to
Machinery Division. The training focuses on four key areas: an analysis of exercise self-discipline. In 2025, the Company experienced no incidents of corruption, The Company has conducted a total of four core courses and one cross-departmental
recent US tariff policies; a self-assessment of contract performance risks fraud, unfair competition or other breaches of business ethics, and there were no comprehensive training programme, with over 150 participants in total. The training is
in the context of tariffs; recommendations on strategies for managing lawsuits or significant administrative penalties arising from such breaches. specifically targeted at key groups involved in the prevention and control of integrity
performance risks; and guidance on common risk areas in trade contracts. risks, including staff within the supervision system, procurement personnel and part-
The training effectively improves the ability of staff in relevant roles to
time supervisors. In terms of content design, the programme emphasises a blend of
identify and manage risks in a complex trading environment, providing theory and practical application, covering interpretations of internal regulations such as
professional support for the compliant conduct of international business. the Scoring Guidelines for Key Supervision Matters and the Measures for the Supervi-
In order to standardise the procedures for handling whistleblowing and complaints, sion of Tendering Work, as well as practical topics including the operational procedures
safeguard the rights of whistleblowers, identify and resolve issues in a timely man- for the risk control platform and case studies of emergency risk incidents. Through a
ner, and uphold the Company's normal order and principles of fairness and justice, series of training sessions, the Company has not only systematically communicated its
LONCIN has formulated and implemented the Whistleblowing and Complaints Man- integrity and compliance requirements but has also significantly enhanced the ability
agement Regulations. The regulations explicitly stipulate that the scope of the whis- of staff in key roles to identify risks and operate in accordance with regulations in their
tleblowing and complaints mechanism covers company employees, suppliers and daily work. This has laid a solid foundation for establishing robust internal oversight
members of the public, and that the types of misconduct covered include seven mechanisms and fostering a corporate culture of integrity and self-discipline.
categories, such as embezzlement and bribery, dereliction of duty and negligence,
and the disclosure of trade secrets.
Whistleblowing procedure：The Company implements a tiered handling mechanism,
whereby routine reports are referred to the relevant operational departments, whilst
serious matters are investigated directly by the Supervisory Department, with the
findings reported to the Chairman; a comprehensive protection system has been es-
tablished to strictly safeguard the confidentiality of whistleblowers’ information, and
any form of retaliation is expressly prohibited; a closed-loop management process
Risk Management Training Image has been established, including a review procedure to be initiated within 10 working
days, and provisions for financial rewards for valid reports.
The Company complies with the principles of lawfulness, legitimacy and necessity, clearly defining the purpose,
methods and scope of data collection. Where personal data is collected, the data subject must be informed and
Data collection consent obtained. The Company maintains a data collection inventory and log records to ensure the traceability of
data sources and the compliance of the collection process.
Case Tendering Training The Company implements a classification and grading system, applying differentiated storage strategies to data
Data storage of varying sensitivity levels. Important data and sensitive personal information are stored in encrypted form, and
To improve the standardisation and professionalism of the tendering retention periods are clearly defined for each category of data to ensure confidentiality, integrity and availability
procedures, and to strengthen awareness of integrity in professional throughout the storage period.
conduct and compliance capabilities, the Company has focused on
The Company strictly implements the principle of least privilege, assigning data access and manipulation
key aspects of procurement and supervision, organising specialised
comprehensive training to ensure that policies are effectively imple-
Data usage permissions to users in accordance with business requirements. Permissions are periodically reviewed and cleaned
up, and significant operations involving sensitive data are logged and audited. When sensitive data is used in non-
mented and adhered to. On September 29th, 2025, the Equipment production environments, it is anonymised to prevent data breaches or misuse.
and Technical Upgrading Department and the Supervision Depart-
The Company has established a data sharing approval process that clearly defines the scope, purpose, methods
ment organised a “Comprehensive Training Course on Tendering Pro- and security responsibilities of data sharing. When sharing sensitive data externally, a security assessment must
Data sharing
cedures” for relevant personnel from the procurement and supervi- be conducted and a data sharing and confidentiality agreement signed; the import and export of data are subject
to strict approval and monitoring.
sion systems. The training covers the Tender Management Measures
and the Tender Supervision Measures, and is designed to enhance the
The Company has established a data destruction mechanism, specifying the methods for erasing data from
implementation of control and supervision mechanisms within the Data destruction storage media. Data that has exceeded its retention period or is no longer required is processed in accordance
tendering process. Through systematic training, the relevant staff’s with prescribed procedures, and records of the destruction are retained.
understanding of the regulations and their ability to implement them
have been effectively enhanced, providing strong support for the Through the aforementioned full-process control measures, LONCIN has effectively mitigated security risks such as data breaches
standardised operation of the Company’s tendering procedures and Tender Integrity Training Image and tampering, thereby providing a robust data security safeguard for the stable operation of its business.
the promotion of integrity.
LONCIN has established a comprehensive data security framework covering multiple layers, including infrastructure, network
providing solid technical support for data security throughout the entire lifecycle.
By deploying perimeter security devices such as firewalls and intrusion detection/prevention systems (IDS/IPS), the Company
effectively defending against external cyber-attacks and malicious intrusions. SSL/TLS encryption protocols are used to secure
LONCIN has established a comprehensive and systematic data security and privacy protection management system. The Company strictly data transmission links, ensuring the confidentiality and integrity of data during transmission.
complies with national laws and regulations such as the Cybersecurity Law, the Data Security Law and the Personal Information Protection
Law, and has formulated the Information Security Management Manual, Information Security Risk Management Regulations, Data Centre The Company has established a comprehensive physical security system for its data centres. Data centres implement rational
Management Regulations, System Security Management Regulations, Data Backup Management Regulations, Measures for the Protection of planning of functional zones, clearly demarcating key areas such as data storage and data processing zones, and enforce strict
Personal Information and Data Security, Cybersecurity Management Regulations, Virus and Malicious Code Prevention Management Regu- physical isolation measures to prevent unauthorised access. Furthermore, multi-factor authentication and access approval
lations, Account Permissions and Password Management Regulations, and Information Security Awareness Education and Training Manage- mechanisms are established, utilising technologies such as access control systems and biometrics to ensure that only authorised
ment Regulations. These cover multiple dimensions, including data lifecycle management, physical and environmental security, network and personnel can enter critical areas of the data centre. With regard to storage device security, the Company selects storage devices
system security, risk control, and personnel access management. with high-security features that support functions such as encryption and access control. It plans the deployment of these devices
appropriately, implements physical isolation measures, and carries out regular maintenance and upgrades to ensure the long-
LONCIN has adopted a governance approach that integrates information security into its daily operations and proactively builds a defense term stable operation of the storage devices.
system. Through multi-layered institutional arrangements covering policy, management, technology and operations, the Company has estab-
lished robust safeguards for the security of its core information assets and personal data.
clients such as the Husqvarna Group, both parties have signed a General Supply Agreement which clearly stipulates confidentiality
clauses, committing to the strict protection of non-public information provided by the client; this obligation remains in force for
LONCIN Digital Centre is the Company’s central supervisory and operational department for data security and privacy protection, responsible
five years following the termination of the agreement. This not only demonstrates the Company's commercial integrity, but also
for providing guidance, conducting inspections, revising policies and managing incident response. The Company has established a security
serves as an institutional safeguard for building a responsible supply chain and maintaining long-term customer trust, thereby
management system covering the entire data lifecycle, from collection and storage to usage, sharing and destruction. Through a Three-in-One
providing a solid compliance foundation for the Company's internationalisation strategy. In 2025, the Company did not experience
approach combining regulatory frameworks, technical safeguards and operational management, the Company ensures that data remains
any customer privacy and information breaches, which fully demonstrates the effectiveness of the Company's governance in
secure and under control at every stage of its flow.
protecting customer information.
Walking Hand-In-Hand with Transparency and
Strengthening Value Communication
LONCIN has always regarded standardised and transparent disclosure of information, together with efficient and open communication with investors, as a core element of corporate gover-
nance. The Company has established a communication mechanism underpinned by compliant disclosure and supported by diverse forms of engagement, thereby effectively safeguarding
investors’ rights and interests and consistently conveying the Company’s value. In 2025, LONCIN received numerous accolades in a range of authoritative awards, covering various areas
including corporate governance, ESG practices, investor relations and the performance of the Board Secretary. This award not only reflects the capital market’s recognition of the Company’s
achievements in high-quality development, but also demonstrates its overall strength in terms of standardised operations, transparent governance and value delivery.
Ye Kejia, Board Secretary of LONCIN, has secured a number of prestigious awards in 2025, including a 3A rating in the “Board Secretary Performance Evaluation” by the China Listed Com-
panies Association; she was named “Best Board Secretary” in the New Fortune magazine awards, whilst the Company’s Securities Affairs Representative, Zhang Xiaowei, was named “Best
Securities Affairs Representative”; Furthermore, the Board Secretary was honoured with the “Outstanding Board Secretary” award at the “2025 China Listed Companies Yinghua Awards”
organised by China Fund News; received the “Elite Board Secretary Award” in the “SSE Eagle · Golden Quality” selection by Shanghai Securities News; was named “Best Main Board Listed
Company Board Secretary” in the “2025 Listed Companies Reputation Ranking”; and was selected as one of the “Top 100 Most Popular Board Secretaries” by Tonghuashun. At the same time,
the Company has been honoured with awards and accolades including the “The 3rd China Reform Cup · ESG Golden Bull Award Top 100”, “Listed Companies Favoured by Institutions” and
“Top 300 Most Popular Rising Companies”.
These numerous awards serve not only as a testament to our past achievements, but also as a driving force for our future endeavours. This fully reflects the recognition of LONCIN’s cor-
porate governance standards and the capabilities of its professional team, and demonstrates the Company’s strong commitment to promoting high-quality development and safeguarding
shareholders’ interests.
The Company aims to strengthen the management of information disclosure, enhance the standard and quality of such management, and ensure that information disclosed is truthful,
accurate, complete, timely and fair. In accordance with the provisions of the Company Law, the Securities Law of the People’s Republic of China, the Corporate Governance Guidelines, the
Measures for the Administration of Information Disclosure by Listed Companies, the Shanghai Stock Exchange Listing Rules, and other relevant laws, administrative regulations, and normative
Case Half-Yearly Performance Briefing
documents, as well as the Company’s Articles of Association, these Information Disclosure Management Rules have been formulated to ensure that the Company discloses information relating
to its operations and management in a timely, accurate and complete manner, in accordance with the law and relevant regulations, thereby enabling investors and other stakeholders to
understand the Company’s corporate governance structure and operational status. To improve the effectiveness of its information disclosure and
strengthen investors’ recognition of the Company’s value, the
The Company discloses information to the public via the official website of the Shanghai Stock Exchange and designated media outlets, ensuring that all investors have equal and simultaneous Company held its 2025 Half-Yearly Performance Briefing on
access to such information. Furthermore, the Company undertakes that all information disclosed to the public is true and accurate, protects inside information, resolutely prevents insider August 26th, 2025, via the SSE Roadshow Centre platform,
trading, and strictly prohibits any entity from disclosing confidential information relating to the Company or individuals in any form. engaging in in-depth discussions with investors on key topics
such as operational performance, strategic planning and indus-
try trends. Through systematic and multi-faceted responses to
questions, the Company effectively communicated its strategic
and recognition within the capital markets.
In 2025, the Company maintains a strong commitment to investor relations and, adhering to the principles of openness, fairness and impartiality, is dedicated to establishing an efficient and
transparent investor relations management system to foster effective communication and interaction between the Company and its investors. Therefore, the Company has established a
multi-channel, multi-tiered communication system, comprising earnings briefings, the SSE e-Interaction platform, investor reception days, an investor helpline, on-site visits, online discussion
forums and periodic reports, to ensure that investors can easily access information and engage in dialogue.
In 2025, the Company organised three full-year results briefings and, through proactive planning and the delivery of over 100 intensive roadshows across Beijing, Shanghai, Guangzhou,
Shenzhen and Hong Kong, established a deep, one-to-one foundation of trust with key investors; simultaneously, it actively participated in 20 strategy briefings hosted by leading brokerages,
widely disseminating the Company’s development narrative; clearly articulating our business logic and future outlook; furthermore, innovatively organising our first-ever on-site inspection of
overseas operations, which significantly enhanced market transparency and recognition, elevating the team’s role from mere “information disseminators” to the Company’s “value discoverers”
and “trust builders”.
In 2026, to ensure that investors are kept fully informed of the Company's performance, the Company will continue to hold regular earnings briefings and will continually explore and expand
its range of communication channels. The aim is to attract the attention of a wider investor base, enhance their understanding of the Company, and strengthen their recognition of the Com-
pany's value.
The Company places great emphasis on investor returns and, in accordance with the Companies Law and relevant regulatory guidelines, has established a sound, sustainable and stable
dividend policy, with a clear commitment to providing shareholders with long-term, stable cash returns. As of 2025, the Company has paid cash dividends for 14 consecutive years, with total Half-Yearly Performance Briefing
dividends amounting to RMB 4.016 billion (including the interim dividend for 2025). This figure far exceeds the Company's cumulative equity financing (RMB 1.017 billion), representing a truly
historic net return to shareholders.
In particular, in order to actively respond to the State Council’s Several Opinions on Strengthening Supervision, Preventing Risks and Promoting High-Quality Development of the Capital Market
and Several Opinions on Strengthening the Protection of Small and Medium-sized Investors in the Capital Market, as well as the guiding principles of relevant documents issued by the China
Securities Regulatory Commission and the Shanghai Stock Exchange, and in accordance with relevant laws and regulations, the Articles of Association and the Company’s actual operating
conditions, the Company has formulated and implemented the 2025 interim profit distribution plan, distributing a total cash dividend of RMB 410,708,370.00.
The Company has established a virtuous cycle of “value discovery—trust-building—profit-sharing—value enhancement” through a dual engines of value delivery and shareholder return prac-
tices. By distributing actual dividends, it has demonstrated its commitment to rewarding shareholders and continues to cultivate an outstanding reputation in the capital markets as a “value
creator” and “profit-sharer”.
In 2026, the Company will continue to focus on long-term and sustainable development, balancing the overall interests of all shareholders with the Company’s capacity for sustainable growth.
Taking into account the Company’s actual circumstances and the wishes of shareholders, we will actively assess the feasibility of measures such as increasing the frequency and payout ratio
of dividends, whilst continuing to provide investors with consistent and stable cash dividends, and striving to deliver long-term, stable and sustainable value returns to shareholders.
Empowered by Innovation
Forging Outstanding
Products
New Chapter in the Industry
Development of the Green Chain
Supply Chain, Strengthening the Foundation of Quality
Response to the United Nations SDGs:
Empowered by Intelligent Innovation, Jointly Writing a 2.Digital and Intelligent Transformation
New Chapter in the Industry LONCIN is focusing its efforts on the field of smart manufacturing, consistently treating it as the core strategic engine for
driving high-quality development and leading industrial upgrading. The Company actively promotes the deep integration
LONCIN places great emphasis on technological research and development, has established a comprehensive R&D framework, continues to increase and mutual empowerment of smart technologies and advanced manufacturing. By leveraging its established end-to-end
investment in R&D, and is constantly deepening its technical cooperation with a number of companies. The Company focuses on the field of smart man- digital and intelligent system—spanning the entire journey “From Market Opportunities to Commercial Realisation”—it
ufacturing, actively promoting the development of motorcycle-related data platforms, the local deployment of large language models, and the establish- achieves cost reduction and efficiency gains through lean and intelligent methods, empowering high-quality corporate
ment of an industrial intelligence platform. At the same time, emphasis is placed on building up intellectual property assets, with continuous technological operations through new-quality productive forces, and establishing a digital and intelligent empowerment system and
innovation and a diversified technological portfolio serving to lay a solid technological foundation for industrial upgrading and high-quality development. core competitive advantages across all business scenarios.
LONCIN places great emphasis on research and development, and has established an R&D structure comprising a “Platform Technology Centre” and “Business
Division Product Development Centres”. The Company priorities fundamental research, digitalization and intellectual property as key enablers, using the market as In September 2025, Chongqing LONCIN ENGINE Co., Ltd. was awarded the National Excellent-Level Smart Factory. In
its anchor to comprehensively drive innovation and breakthroughs across all business lines. The Company has established comprehensive simulation capabilities December 2025, it further received the title of Chongqing Future Factory. Through the development of next-genera-
covering the entire development process, including structural strength, dynamic performance, thermal management, fluid dynamics, reliability and NVH (noise, tion technologies, the Company has established a total of 44 models, comprising 1 geometric model, 28 algorithmic
vibration and harshness), and possesses the corresponding engineering solutions to fully support the technical requirements and growth momentum of all business models, 12 design simulation models and 3 mechanistic simulation models, as well as 10 knowledge bases.
units.
Based on comprehensive calculations, once the project is implemented, production efficiency is expected to increase
In 2025, LONCIN had a total of 1,662 staff members across its various R&D teams, with R&D expenditure amounting to RMB 468.5588 million. R&D expenditure by 82.22%, operating costs to decrease by 34.81%, product defect rates to fall by 22.22%, R&D cycles to be short-
accounted for 2.45% of revenue, reflecting the Company's continued commitment to strengthening its investment in technology. ened by 17.9%, energy utilisation to improve by 14.19%, and the rate of CNC equipment adoption in key production
processes to reach 100%. By deploying ten major intelligent agent application scenarios across the entire spectrum of
Guided by a strategy of synergy and collaborative innovation, the Company has not only deepened its strategic partnerships with renowned domestic and inter- business, design and production, the project has achieved a significant leap forward in intelligence and digitalisation,
national enterprises such as BMW and research institutions, but has also continued to inject innovative momentum into the sector’s development by accelerating demonstrating the Company's core competitiveness in the field of smart manufacturing.
the commercialisation and industrial application of technological achievements.
members across its various
R&D teams R&D expenditure amounting R&D expenditure accounted Language Models to Drive Industrial Upgrading
LONCIN has deployed the open-source large language models
staff RMB million % locally. On one hand, it has taken the lead in the industry by
achieving deep integration between Wuji Motorcycles’ “Jiyu
OS” and intelligent agent, upgrading the “Riding Assistant” and
planning to integrate third-party ecosystems, thereby providing
users with a smarter, more engaging and revolutionary riding
Key technological R&D achievements in 2025: experience. On the other hand, by leveraging the data insights
Technical enhancements were implemented across 46 key new products, covering performance aspects such as powertrain accumulated through the comprehensive learning of locally
Technical Enhancement and Platform smoothness, handling, reliability, vibration and ride comfort, exhaust sound quality, thermal comfort and aerodynamic drag, achiev- deployed large language models, and by developing intelligent
Development for New Products ing a leading position within the domestic market. Four technical platforms for performance development across production lines agent applications trained for industrial scenarios, we aim to
were successfully established, providing systematic support for product iteration.
create the motorcycle industry’s first intelligent riding agent,
Undertake 20 new technology R&D projects, continue to build core technology platforms, and drive preliminary research thereby driving the transition towards new-quality productive Open-Source Large Language Model
Core Technology R&D and Forward- and engineering applications for new systems and materials; simultaneously, deepen our expertise in AMT and variable forces. At the same time, the Company leverages its full-indus-
Looking Strategy exhaust technologies, steadily advance the development of new technologies such as mild-hybrid systems and intelligent try-chain layout to establish a national-level high-end motorcycle industry intelligence hub, aggregating industry
vehicle bodies, and establish core design capabilities.
data and incubating the sector’s first vertical large language model. Empower the entire industrial chain of in-
Advancing 29 R&D capacity-building projects, achieving breakthroughs in areas such as objective and subjective evaluation
telligent motorcycle manufacturing, intelligent motorcycle purchasing and intelligent motorcycle usage, so as to
R&D Capacity Building and Strategic consolidate the Company's leading position in the industry.
systems, vibration and thermal management, providing comprehensive support for the implementation of the "Precision
Implementation
Control 2.0" strategy, and continuously reinforcing the "Precision Control" product value proposition.
the Industrial Brain for High-End
Motorcycles 3.1 Intellectual Property Management System
As the lead contractor for the High-End Motorcycle Industry Brain project,
LONCIN has, since its launch in February 2025, adhered to the development LONCIN strictly complies with the Patent Law of the People’s Republic of China, Trademark Law of the People’s Republic of China, Copyright Law of the People’s Republic of China, and other relevant
principle of “Four-Side Coordination & Four-Chain Integration”. In laws and regulations. The Company has formulated and implemented a series of guidelines and procedures, including the Intellectual Property Management Measures, the Patent Management and
collaboration with organisations such as Humi Technology, Shuyin Network
Operations Manual, the Intellectual Property Application Process, Property Rights Risk Search Process, Intellectual Property Reward Management Measures, etc. By integrating these with the Company’s
and MotoCloud, it has completed the development of all functions for Industry
Brain 2.0 and successfully launched the platform. The project aggregates OA system, LONCIN ensures the effective management of all types of intellectual property. The Intellectual Property Department of LONCIN successfully organized 4 specialized training sessions in
multi-dimensional data on industry operations, distribution and ecosystems 2025 to enhance the awareness of relevant departments regarding intellectual property and facilitate efficient intellectual property work. The training covered key areas such as how to file patent
to create three core modules: “Intelligent Motorcycle Manufacturing” , applications, how to interpret patent rights, how to assess patent risks, etc. Through systematic training, LONCIN aims to strengthen the professional capabilities of various departments in intellectual
“Intelligent Motorcycle Purchasing” and “Intelligent Motorcycle Usage”. property management and application, providing solid support for the Company's technological innovation and market expansion.
The "Intelligent Motorcycle Manufacturing" module has established business
synergies with 637 core supply chain enterprises, thereby establishing an
“Industrial Brain + Future Factory” model. “Intelligent Motorcycle Purchasing”
covers 1,700 sales outlets nationwide and serves over 200,000 end users,
establishing a comprehensive financial services ecosystem. “Intelligent
Motorcycle Usage” connects over 280,000 intelligent networked motorcycles, In 2025, LONCIN continued to advance technological innovation, achieving remarkable results and further consolidating its
has launched the “Two-Wheeler Monitoring Platform” and successfully piloted technological leadership position in the industry. As of 2025, the Company was granted 7,111 patents, including 583 domestic and
it in cities such as Urumqi and Putian, whilst simultaneously training and international invention patents, demonstrating its strong technological reserves. The Company’s newly granted patents in 2025
generating 15 “Intelligent Agents”. This industrial brain assists enterprises
totaled 149, including three major categories: invention patents (5), utility model patents (90), and design patents (54), continuously
and the industry as a whole in gaining market insights and adjusting their
releasing its innovative vitality. As of 2025, LONCIN holds 1,430 valid patents both domestically (1,416) and internationally (14),
operations, enhancing supply chain coordination, supporting expansion into
international markets, and providing digital and intelligent empowerment. It including 296 invention patents (293 domestic and 3 international), 588 utility model patents (587 domestic and 1 international), and 41.12%
drives the digital and intelligent transformation of the motorcycle industry 546 design patents (536 domestic and 10 international). This forms a three-dimensional patent protection network primarily focused
Invention Patents Utility Model Patents
and reshapes the industrial ecosystem. on domestic coverage while extending to key global markets, providing core support for product competitiveness enhancement and
Design Patents
international strategy advancement.
Number of Valid Patents Held by LONCIN
As of 2025, the Company had accumulated 1,447 (836 domestic and 611 international) registered trademarks and held 712 (328 domestic and 384 international) valid registered trademarks, establishing
a systematic trademark strategy to support its global product sales. In 2025, the Company newly registered 15 trademarks both domestically and internationally, continuing to advance its trademark
strategy.
As technology rapidly evolves and advances, the Company continues to expand its presence in the field of cutting-edge technology applications. From the fixed-command interaction
model in 2022, to the introduction of Baidu ERNIE Large Model’s generative intelligence services and the launch of the industry’s first intelligent “Cycling Assistant” in 2023; in 2024, a
local intelligent computing center was established and large model deployment was completed, solidifying the foundational infrastructure for intelligent technology; in 2025, the full-
scale implementation of intelligent agents was advanced, deeply integrating large models into the entire process of smart manufacturing and intelligent products, and developing and
deploying multiple intelligent agent applications. In 2025, the Company did not engage in any conduct that violated technology ethics.
Digital Workshop for High-End Motorcycle Production
Risk Control as a Foundation, Safeguarding
the Development of the Green Chain
LONCIN has established a comprehensive supplier life cycle management system. Through standardized access proto-
cols, ongoing reviews, and exit mechanisms—combined with multi-dimensional evaluations and dynamic management LONCIN places great emphasis on the ongoing review and dynamic management of its collaborating suppliers. In accordance with the
approaches—the Company enhances its supply chain risk prevention and control capabilities. This effectively ensures the Management Measures for the Evaluation of Qualified Suppliers, a standardized, multi-dimensional review mechanism has been established
stable and efficient operation of the supply chain, laying a solid foundation for product quality control and the advance- to ensure that suppliers maintain the supply capabilities required by the Company over the long term, promote continuous improvement of
ment of core business operations. suppliers, and provide a solid foundation for supply chain stability and product quality.
LONCIN conducts comprehensive and detailed reviews of its collaborating suppliers. These reviews cover multi-dimensional indicators,
including core aspects such as quality, on-time delivery rates, sample submission and quotation progress for new product development,
and financial data. Evaluations are graded on a 100-point scale and categorized into four levels: A (≥95 points, Excellent), B (including 80
points to 95 points, Good), C (including 60 points to 80 points, Pass), D (＜60 points, Unqualified).. Grade A suppliers are eligible for selection
To standardize the management of supplier onboarding, changes, and exit, select suppliers that meet the Company's require- as “Outstanding Suppliers” or “Quality Excellence Suppliers.” Grade D suppliers must undergo corrective actions for quality and delivery-
ments to join the supporting system, track changes in suppliers, and address them in a timely manner. When a supplier exits the related issues, facilitated by the Quality Assurance Department and the Procurement Department, respectively. Grade B and C suppliers
Company's supporting system, the relevant materials and financial records are effectively managed. The Company has formu- maintain normal cooperation but are required to sign and return the evaluation form. This comprehensive mechanism effectively promotes
lated and refined relevant policies, including the Supplier Onboarding Evaluation and Exit Management Process, the Qualified continuous improvement among suppliers, ensuring supply chain stability and product quality.
Supplier Evaluation Management Measures, and the Supplier Development and Evaluation Control Procedure, in an effort to build
a competitive and sustainable supply chain and comprehensively enhance the Company's competitiveness.
LONCIN places great emphasis on supplier onboarding management, implementing a rigorous and standardized evaluation
In accordance with the Supplier Onboarding Evaluation and Exit Management Process, LONCIN conducts dynamic, full-cycle reviews and
system throughout the entire onboarding process for suppliers of motorcycle, parts, and general machinery businesses.
rigorous oversight of its collaborating suppliers. By continuously monitoring suppliers’ overall performance, the Company establishes a
Through multi-dimensional assessments and a tiered approval process, the Company ensures supply chain quality and
standardized and orderly exit management mechanism to ensure that the supply chain remains efficient and compliant at all times.
business compatibility.
The Company shall initiate the exit procedure when a supplier meets any of the following conditions: First, if a supplier’s comprehensive
Detailed onboarding measures：For suppliers to locomotive companies, the focus is on verifying basic corporate
evaluation fails to meet the requirements and the supplier is identified for removal. Second, the supplier has been extremely uncooperative
information—such as workforce composition and the competitor structure—and implementing the corresponding
with the Company's relevant operations, which has disrupted normal production and operations. Third, the supplier voluntarily applies to
approval processes to ensure that the suppliers meet the required baseline standards. For suppliers to parts companies,
exit due to its own reasons. Once the exit process is initiated, the Company will first review its exclusive supply items and finalize resource
a comprehensive assessment is conducted across five key dimensions—business performance, technical capabilities,
allocation to ensure that the supply of parts remains unaffected. Following this, the process will proceed through stages such as return
manufacturing capabilities, quality assurance, and after-sales service—with detailed evaluation criteria covering core areas
verification, final payment settlement review, and multi-departmental approval. Finally, an exit notice will be issued via the OA system.
such as equipment precision, process specifications, and quality systems. For suppliers to the general machinery business,
Suppliers whose qualified supplier status has been revoked will, in principle, no longer be included in the list for collaboration.
the focus is on supplier qualifications, such as ISO system certifications, production capacity, product compatibility, and
evaluation scores. Following an on-site audit by the SQE and approval by management at multiple levels, the supplier’s By establishing a comprehensive supplier exit mechanism, the Company can promptly remove suppliers who fail to meet cooperation
onboarding application is approved upon passing these reviews. requirements or demonstrate low levels of cooperation, thereby preventing them from affecting product quality and production schedules.
It also ensures a smooth transition of resources through standardized exit procedures, mitigates supply chain risks, and continuously
These measures effectively screen for high-quality suppliers that meet qualification standards, possess strong capabilities,
optimizes the supply chain structure by identifying higher-quality, better-suited partners, thereby providing a solid foundation for the stable
and align with business needs. They not only address supply gaps in the Company's operations but also ensure supply
operation of the Company's core businesses, such as engine parts.
chain stability and product quality at the source, providing solid support for the efficient advancement of the Company's
core businesses, including locomotives, parts, and general machinery.
and Control Supply Chain, Strengthening the Foundation of Quality
LONCIN places a high importance on supply chain risk management and the development of a green supply chain.
Relevant requirements are implemented in accordance with the Procurement Plan Implementation Management LONCIN is advancing end-to-end quality management and continuously improving its product quality and safety systems. By obtaining multiple
Measures, Supplier Quota Management Measures, Supplier Onboarding and Exit Management Measures, and the authoritative quality management system certifications, the Company has solidified the foundation of its product quality. At the same time, the service
Production Materials Procurement Contract. The Company strengthens supplier management through end-to-end system has been optimized to meet customer needs, and feedback and complaint handling mechanisms have been improved to ensure that 100% of
order control and detailed management measures: complaints are resolved, earning high recognition from customers both domestically and internationally.
For the same material, a “one primary, one secondary, and one supplementary” supply principle is ap-
plied to suppliers.
Monthly and annual performance evaluations of suppliers are conducted; suppliers are required to 质量管理体系认证证书
证 书 编 号 ： 00124Q3 7811R 4L/50 00
make quality assurance deposits; and a mechanism for holding suppliers accountable for breaches of
兹证明
隆鑫通用动力股份有限公司
LONCIN continues to refine its product quality management system, steadily advancing quality management system
统一信用代码:915001076608997871
contract is established.
注册地址：中国重庆市九龙坡区九龙园区华龙大道 99 号
运营地址：中国重庆市九龙坡区九龙园区华龙大道 99 号/中国重庆市九龙坡区九龙园区 C 区
质量管理体系符合标准：
certification and product quality certification efforts, and continuously improving the standardization and normalization of its
GB/T 19001-2016 / ISO 9001:2015
通过认证范围如下：
A list of potential suppliers is established, and candidates are selected from the list as needed to prevent
摩托车发动机、驱动电机、第二代单缸柴油机、通用汽油机及其终端（发电机组、水泵、微耕机）的设计开发、生产制造、销售（含
quality management practices. The Company has obtained ISO 9001 quality management system certification and strictly
出口）服务、园林机械草坪车的出口销售和服务；摩托车用驱动电机控制器的研发；摩托车、非公路用车（休闲越野车、全地形车）
的出口销售和服务（覆盖的组织、场所和范围详见证书附件；本证书包含 3 张子证书）
the inclusion of unqualified suppliers.
首次发证日期：2006年6月26日 本次发证日期：2024年9月4日 有效期至：2027年9月17日
adheres to the requirements of the IATF 16949: 2016 Quality Management System—Specific Requirements for the Application
在一个监督周期后，本证书必须与CQC签发的监督审核合格通知书合并使用方可有效。查询证书有效状态请登陆www.cqc.com.cn。
本证书信息可在国家认证认可监督管理委员会公示的网站（www.cnca.gov.cn）上查询
Suppliers are subject to rigorous review of their foundational qualifications; they are required to provide of ISO 9001: 2015 in Automotive Production and Related Service Organizations and the GB/T 19001-2016/ISO 9001:2015
a complete set of documents, including business licenses, quality management system certifications, Requirements for Quality Management Systems, among other standards. The Company comprehensively implements quality
environmental certifications, and more. Distributors must additionally provide proof of authorization control measures to ensure the stability and reliability of its products.
from the original manufacturer.
Quality Management
A tiered onboarding evaluation is implemented. Non-special suppliers may be onboarded only after System Certification
passing the initial evaluation; special suppliers must pass the SPS review (with a composite score of
≥5.5). Those who fail to meet the standards must rectify the issues within a specified timeframe and
undergo a re-evaluation.
LONCIN adheres to a customer-oriented approach and continuously optimizes its customer service system. The Company strictly complies with laws and
regulations such as the Consumer Rights Protection Law of the People’s Republic of China and has established internal policies including the Customer Satisfaction
Measurement Management Measures and the Customer Satisfaction Control Procedures. This helps the Company improve the quality of its products and services
and enhance its business performance.
Management LONCIN has clarified the responsibilities of each department, standardized complaint handling and satisfaction survey processes, and collected customer feedback
through multiple channels to analyze and address relevant issues. At the same time, key performance indicators are quantified and monitored to ensure they
LONCIN strictly complies with relevant national laws and regulations, including the Bidding and Tendering Law of the cover core areas such as product quality, delivery efficiency, and service levels, thereby enabling a precise response to customer needs, continuous optimization of
People’s Republic of China, and has established and refined internal management systems such as the Supplier Man- products and services, and ultimately achieving the goals of enhancing customer satisfaction and improving business performance.
agement Manual, Supplier Onboarding and Exit Management Measures, and Supplier Development and Evaluation
In 2025, LONCIN achieved remarkable success in customer management and satisfaction. According to the results of the customer satisfaction survey, 100%
Control Procedure. The Company requires suppliers to establish and effectively operate environmental management of dealers rated the sales staff’s professional competence highly, while 97% expressed satisfaction with business guidance and logistics support. Based on a
systems and occupational health and safety management systems in accordance with ISO 14001 and ISO 45001 stan- comprehensive evaluation of external dealer satisfaction survey scores and internal performance scores, the annual overall customer satisfaction score reached
dards. The Company complies with environmental protection, occupational health and safety, and other relevant laws an outstanding 97.55 points.
and regulations; implements measures for pollution prevention and control, waste sorting and disposal, and energy
In 2025, engine-related social customers filed a total of 20 complaints via telephone, involving multiple regions such as Chengdu, Sichuan province and Suqian,
conservation and consumption reduction; sets a goal of zero major safety incidents; and conducts employee safety
Jiangsu province. The complaints covered inquiries regarding engine usage (such as operating speed and specifications), requests for spare parts, and repairs for
training and fire drills. At the same time, the use of child labor and forced labor is strictly prohibited; the legitimate malfunctions (such as cylinder head oil leaks and damaged auxiliary shafts). All complaints were resolved 100%. After addressing the issues through explanations,
rights and interests of employees are safeguarded; fair competition and anti-monopoly rules are adhered to; and coordinating with regional agents, and dispatching after-sales repair technicians, all customers indicated satisfaction. The resolution of such complaints effectively
commercial bribery, improper transfers of benefits, and similar conduct are strictly prohibited. Suppliers found to be in and promptly addressed customer concerns, prevented dissatisfaction from escalating, and strengthened customer trust. At the same time, it ensured the stability
serious violation of these rules will have their supply qualifications revoked. of after-sales service quality, providing strong support for the Company to maintain and enhance overall customer satisfaction.
Green Intelligent Manufacturing
Leading the Low-Carbon
Transformation
Foundation
Response to the United Nations SDGs:
System Management: Laying a Solid
Green Foundation
LONCIN has strengthened its environmental management system to comprehensively solidify the LONCIN's Environmental Management Goals and Progress for 2025
foundations of environmental compliance and emergency management, ensuring that its production and
operations consistently meet regulatory requirements and effectively enhancing its risk prevention and
Dimension Objective Measures Progress
control capabilities. In the future, the system's operation will continue to be optimized, and the principles
of green and sustainable development will be upheld. Reduce energy consumption, with Optimize production processes, raise
In 2025, comprehensive energy consump-
Energy comprehensive energy consumption per awareness of energy conservation, and
tion per RMB 10,000 of output value was
Consumption RMB 10,000 of output value down by establish energy assessment management
reduced by 12%
Management
Wastewater No emissions exceeding standards in 2025
ment rate, with emissions meeting testing, septic tank management, etc.
Management
regulatory standards
The Company strictly adheres to national environmental laws and
Regularly inspect and maintain exhaust
regulations, including the Environmental Protection Law of the People’s
gas treatment facilities; periodically
Republic of China, the Air Pollution Prevention and Control Law of the Exhaust Emission Complies with the Comprehensive replace environmental consumables Met emission standards in 2025
People’s Republic of China, the Energy Conservation Law of the People’s Control Emission Standards for Air Pollutants such as activated carbon and filter bags;
环境管理体系认证证书 collect emissions centrally, treat them, and
Republic of China, the Water Pollution Prevention and Control Law of
discharge them at a high elevation.
证 书 编 号 ： 00124E3 3630R 5L/50 00
the People’s Republic of China, and the Solid Waste Pollution Prevention
兹证明
隆鑫通用动力股份有限公司
and Control Law of the People’s Republic of China. By establishing
统一信用代码:915001076608997871
Dedicated containers, designated Container procurement, ledger
注册地址：中国重庆市九龙坡区九龙园区华龙大道 99 号
Hazardous Waste 100% centralized collection and treat-
运营地址：中国重庆市九龙坡区九龙园区华龙大道 99 号/中国重庆市九龙坡区九龙园区 C 区
dedicated teams and engaging external consulting firms, the Company 环境管理体系符合标准：
personnel for management, and management, and entrusted disposal
Management ment rate for hazardous waste
GB/T 24001-2016 / ISO 14001:2015
continuously monitors global developments in climate-related laws 通过认证范围如下：
摩托车、发动机、驱动电机、第二代单缸柴油机、通用汽油机及其终端（发电机组、水泵、微耕机）、全地形车产品的设计开发、
disposal by licensed entities have been completed
and policies, stays abreast of the latest regulations regarding carbon
生产制造、销售（含出口）、园林机械草坪车的出口销售和服务、摩托车用驱动电机控制器的研发及相关管理活动（覆盖的组织、场
所和范围详见证书附件；本证书包含 2 张子证书）
emission standards and renewable energy applications, provides Complies with the Environmental Soundproofing measures for equipment
operation; accept supervision and
首次发证日期：2010年1月27日 本次发证日期：2024年8月30日 有效期至：2027年9月16日
a basis for decision-making, and formulates proactive response 在一个监督周期后，本证书必须与CQC签发的监督审核合格通知书合并使用方可有效。查询证书有效状态请登陆www.cqc.com.cn。
Noise Control Noise Emission Standards for Indus- No emissions exceeding standards in 2025
inspection from the local environmental
本证书信息可在国家认证认可监督管理委员会公示的网站（www.cnca.gov.cn）上查询
strategies to mitigate compliance risks. At the same time, the Company trial Enterprise Boundaries protection bureau
continues to refine its environmental management system, clearly
defining the responsibilities of each department regarding climate Prevent major accidents such as me-
Standardize job operations, perform rou-
compliance and assigning specific duties to individual staff members. Accident Preven- chanical injuries, electric shocks, fires,
No major accidents occurred in 2025
tine equipment maintenance, and conduct
The Company also strengthens training for all employees to enhance tion explosions, and hazardous chemical
regular emergency drills
their understanding of regulations and their ability to implement them, Environmental Management leaks
thereby ensuring that all aspects of the Company’s operations comply System Certification
with regulatory requirements.
social responsibility but also a fundamental requirement of daily operations and management. On the one hand, the Company actively promotes green office
practices internally by displaying energy-saving posters in the workshop and office buildings, thereby fostering an efficient, eco-friendly, and modern office
The Company has systematically established its 2025 environmental and safety management objectives culture and encouraging all employees to consciously adopt green office practices in their daily work.
across multiple dimensions, including wastewater discharge, energy consumption, hazardous waste and
chemical disposal, noise control, treatment of exhaust gases from painting and testing processes, water On the other hand, in managing external stakeholders, the Company explicitly requires its business partners to enhance their environmental awareness
reuse at wastewater treatment plants, and accident prevention. Through the implementation of a series and strictly comply with national environmental laws and regulations. Business partners must organize training sessions on environmental protection and
of targeted management plans and technical measures, all performance indicators have been effectively implement all environmental protection measures during construction or operations, including controlling dust and noise, protecting vegetation on-site and in
met and continuously improved. No major environmental violations or safety incidents occurred throughout the surrounding area, and properly disposing of waste. They must ensure that all materials are removed and the site is cleaned up upon completion of work,
the year, and the overall management system operated smoothly with notable results, demonstrating the and restore the environment to its original condition as much as possible. At the same time, the Company incorporates environmental protection requirements
Company's steadfast commitment to sustainable development and safe production, as well as its ability into the onboarding training and ongoing supervision of its stakeholders through safety briefings and contractual agreements, ensuring that environmental
to put these principles into practice. responsibilities are effectively communicated at every level and fully implemented.
Case Environmental Protection Training
LONCIN has always placed a high priority on the prevention and emergency management of sudden environmental incidents. In strict accordance with relevant laws and regulations, including
the Emergency Management Measures for Sudden Environmental Incidents, and in light of its own production and operational realities, the Company has formulated a comprehensive emergency
On June 18th, 2025, the Company organized a specialized
response plan covering key areas such as the emergency organizational structure, prevention and early warning mechanisms, emergency response procedures, mitigation measures, and post-
training session on the identification of safety and envi-
incident follow-up. This plan comprehensively addresses all potential environmental risk sources and hazardous substances that may arise during production and operations. To continuously
ronmental hazards for a total of 153 participants, includ-
improve its emergency response capabilities, the Company has implemented a range of measures—including enhanced monitoring of risk sources, emergency training and drills, and the
ing production team leaders, supervisors, full-time safety
stockpiling of sufficient emergency supplies—to prevent environmental pollution incidents and effectively safeguard the surrounding ecological environment and public safety. In 2025, the
officers, and environmental protection specialists from
Company organized a total of 2 environmental emergency drills.
various departments. The training provided a systematic
introduction to core topics such as methods for identifying
safety hazards, practical on-site hazard inspections, and
the proper management of hazardous waste. This training
not only effectively enhanced the environmental risk iden-
Case Emergency Drill at Wastewater Treatment Plant Case Emergency Drill at Aluminum Shavings Tank Leak
tification and on-site management capabilities of frontline
employees and managers, but also promoted the compa-
On July 1st, 2025, LONCIN and Zhongkang Environmental Protection conducted an On December 1st, 2025, the Company organized an emergency response drill
ny-wide and standardized implementation of hazard iden-
emergency drill for an oil-contaminated wastewater spill at the Zone C wastewater for an aluminum shavings leak. The drill simulated an emergency scenario
tification and rectification efforts. It further strengthened
treatment plant. The drill simulated an emergency scenario in which maintenance involving a leak of cutting fluid mixed with aluminum shavings. Each special-
the Company’s awareness of its primary responsibility for
work on workshop equipment caused an overflow in the high-concentration wastewa- ized team responded swiftly and coordinated effectively in accordance with
environmental protection and its compliance management
ter pipeline network. Participants swiftly activated the emergency response plan and their assigned responsibilities, systematically completing procedures such as
capabilities, providing strong support for the ongoing de-
carried out on-site response, wastewater diversion, and emergency monitoring in an reporting the incident, activating emergency protocols, containing the leak,
velopment of a safe, green, and sustainable production
orderly manner, thereby promptly eliminating safety hazards and environmental pol- absorbing and collecting materials, and properly disposing of subsequent
and operational environment.
lution risks. This drill not only tested the feasibility of the emergency response plan and hazardous waste. This drill further strengthened the emergency response
the coordinated response capabilities of the emergency teams, but also enhanced the skills of the personnel involved, optimized team coordination processes, and
participants’ risk awareness, emergency response skills, and the efficiency of inter-or- accumulated practical experience that will enable the Company to respond
ganizational coordination, thereby laying a solid foundation for effectively addressing effectively to similar environmental emergencies and strengthen its environ-
various environmental emergencies in the future. mental safety defenses.
Responding to Climate Change,
Protecting Our Earth
In the context of the ongoing deepening of China’s “Carbon Peaking and Carbon Neu-
trality” strategy, LONCIN has established scientifically sound and actionable carbon Type of Risk Risk Impact Risk Adaptation / Opportunities
peaking and carbon neutrality targets, actively responded to the TCFD framework to
enhance the quality of climate-related disclosures, integrated climate risks into strate- Extreme weather events caused by climate change (such as heavy In terms of technology, increased investment in the research and development of new energy
gic decision-making and operational processes, and systematically advanced green- rains and hurricanes) may affect the Company’s ability to continue products—such as electric motorcycles and hybrid engines—will help reduce carbon emissions
house gas accounting and emissions reduction management. This series of initiatives Climate as a going concern and its assets; they may also lead to logistics and improve product reliability in adverse weather conditions
not only demonstrates our commitment to actively fulfilling our environmental respon- Risks delays, which could result in transaction disputes; In terms of management, enhanced employee labor protection measures—such as providing
sibilities, but also focuses on effectively managing climate transition risks, promoting Thunderstorms may cause localized signal disruptions, affecting specialized protective equipment and conducting safety training—will ensure the health and
green technological innovation and operational efficiency, thereby strengthening the the stability of production systems. safety of employees during extreme weather conditions.
Company's long-term competitiveness amid the trend toward low-carbon transforma-
tion, and ultimately achieving the harmonious development of sustainable growth and
climate resilience. In active response to the national “Carbon Peaking and Carbon Neutrality” policy and in ear-
Under the “Carbon Peaking and Carbon Neutrality” goals, nest implementation of the green and low-carbon development strategy, the Company has
the policy framework is becoming increasingly robust, and established a compliance monitoring and internal management system: ① By establishing
tal policies and regulations. If the Company fails to com- uously tracks legislative developments and regulatory trends in key markets regarding car-
Policy bon emissions reduction and renewable energy applications, thereby providing a basis for
Neutrality” Goals strategic adjustments and mitigating compliance risks. ② Improve the internal environmental
ply with regulatory policy requirements in a timely manner,
Risks compliance costs will increase; the Company may face pen- management system by transforming domestic and international statutory environmental re-
alties such as fines or production restrictions for exceed- quirements into clear internal corporate standards and operating procedures. Through a clear
In active response to the national “Carbon Peaking and Carbon Neutrality” strategy, the ing carbon emission limits. All of these factors constrain the division of responsibilities, break down compliance objectives to individual business units and
Company will continue to deepen its transition toward a green and low-carbon future, Company's operations and development. specific positions to ensure that responsibilities are assigned to specific individuals.
steadily advance greenhouse gas emission reduction efforts, and contribute to the achieve-
ment of the national carbon peaking and carbon neutrality goals through a scientifically
sound and reasonable emissions reduction pathway. At the same time, we have estab- LONCIN actively addresses the risks associated with the iteration of low-carbon technolo-
Climate change and resource constraints impose heightened de-
lished clear emission reduction targets and are continuing to reduce Scope 1 and Scope 2 gies by establishing a multi-tiered collaborative innovation system. The Company continues to
mands on innovation in low-carbon technologies, management,
greenhouse gas emissions.
Technical and products, and there is a risk of technological iteration in the
strengthen its strategic partnerships with leading domestic and international companies, such
Risks low-carbon transformation.
as BMW, as well as research institutions, to jointly advance the research, development, and
application of green technologies and smart mobility solutions.
and TCFD Framework Response
The global economic downturn may lead to a reduction in consum- Strengthen traditional markets such as Europe, actively expand into emerging markets includ-
er demand for motorcycles and other products, affecting the Com- ing Southeast Asia, Africa, and Central Asia, and diversify geographically to mitigate the risks
Economic pany's sales revenue; associated with economic fluctuations in any single market.
Volatility Risks LONCIN, as an export-oriented enterprise, may be affected by ex- Utilize financial instruments such as forward foreign exchange contracts to hedge against
tional market and profits.
some exchange rate risk and mitigate the impact of exchange rate fluctuations on operating
performance.
In response to global trends in climate governance, LONCIN has integrated cli-
mate-related factors into its corporate strategic decision-making and risk manage- Market As consumers' environmental awareness grows, they are increas-
By promoting the “VOGE” brand’s image as a high-end, smart, and eco-friendly brand, as well
ment systems. By adhering to the TCFD framework, the Company systematically Demand ingly inclined to choose low-carbon, eco-friendly transportation and
as the energy-saving features of company’s general-purpose machinery, we aim to enhance the
identifies and manages climate-related risks and opportunities, continuously refines power solutions. Demand for traditional fossil fuel products may
its governance structure, ensures the effective implementation and ongoing optimi-
Fluctuation see a structural decline. This will result in lost orders and a decline
brand’s reputation and customer loyalty within the low-carbon economy.
zation of its climate strategy, and enhances its long-term resilience and competitive- Risks in revenue.
ness in the era of a low-carbon economy.
The Company enhances supply chain efficiency and cost control by establishing long-term
strategic partnerships with key suppliers, fostering close collaboration, and diversifying its
Fluctuations in the availability and pricing of raw materials, such as
steel, rubber and plastics, will expose the Company to supply risk.
supply chain structure, thereby mitigating the impact of imported inflation.
When procuring core components, the Company proactively integrates itself into suppliers’
If changes in the international situation or natural disasters affect
LONCIN has fully responded to global energy transition trends by incorporating green and Supply the supply of raw materials, resulting in a significant increase in
production and quality control processes, offering measures such as jointly developing
and low-carbon development into its core strategy. By systematically planning the production schedules and securing supply quotas in advance to ensure the stable delivery
transformation of new energy mobility and actively exploring product technology
Chain Risks prices, the Company's production costs will increase.
of critical resources. In response to fluctuations in raw material market prices, the Company
upgrades, the Company is committed to setting an industry benchmark for green employs a combination of annual framework agreements and flexible price adjustment
mechanisms to effectively mitigate the operational pressures caused by cost volatility.
and low-carbon development and leading the industry toward achieving the “Car-
bon Peaking and Carbon Neutrality” goals.
The Company has systematically established its own environmental risk management To systematically advance the transition to a green and low-carbon economy, the Company has fully integrated carbon reduction targets into its development strategy. By establishing
system in accordance with relevant national and local laws, regulations, and technical clear reduction pathways and implementation plans, the Company aims to significantly improve resource efficiency and reduce energy consumption. This series of initiatives has not
standards. This system adheres to the principles of prevention first, tiered manage- only accelerated the Company’s own green transformation but has also provided substantial support for the achievement of the country’s “Carbon Peaking and Carbon Neutrality” goals,
ment, effective emergency response, and continuous improvement. It aims to sys- demonstrating the Company’s proactive commitment and active contribution to addressing climate change.
tematically identify, scientifically assess, and effectively prevent and control potential
risks of sudden environmental incidents in production and operations, thereby ensur- Short-term objectives Medium-term objectives Long-term objectives
ing regional environmental safety.
Over the next three years, the Company aims to steadily reduce the car- Over the next three to five years, the Over the next decade, the Company plans to gradually achieve
In terms of system development and organizational support
bon intensity of Scope 1 and Scope 2 emissions and continue to increase Company plans to actively pursue re- a sustained reduction in Scope 1, Scope 2, and Scope 3 green-
The Company has established 14 policies and regulations, including the Environmental theproportion of renewable energy used. ductions in absolute Scope 1 and Scope house gas emissions through the implementation of carbon off-
Protection Management System, Regulations on the Management of Environmental At the same time, it will strive to reduce the carbon intensity of Scope 2 carbon emissions and strive toower the set projects and deep decarbonization technologies.
Pollution Incidents, Hazardous Waste Management System, and System for Rectifying
Environmental Risks and Hazards, and has established a dedicated Safety and Envi- areas through initiatives such as green office practices and low-carbon It will also promote carbon emission re- principles into the management of the entire product lifecycle,
commuting. In particular, the Company has established the following re- ductions in production processes through with a focus on reducing carbon emissions during the product’s
ronmental Protection Department to oversee the Company’s safety and environmen- newable energy targets: by 2026, green electricity will account for 30% measures such as continuously improv- use phase and strengthening the recycling system for end-of-
tal protection efforts. By establishing policies and setting up dedicated departments, of total annual electricity consumption, and by 2027, photovoltaic power ing energy efficiency. life products.
the Company has systematically defined the environmental safety responsibilities of will account for 8% of total annual electricity consumption.
employees at all levels, thereby providing a solid organizational and institutional foun-
dation for the effective implementation of environmental risk management.
During the risk identification and assessment phase
The Company comprehensively identifies environmental risk substances involved in
the entire production process in accordance with the List of Hazardous Chemicals:
first, substances that may have a significant impact on the atmospheric environment LONCIN strictly complies with national laws and regulations, including the Environmental Protection Law of the People’s Republic of China, and actively supports the national “dual carbon” strategic
due to leakage, volatilization, or accidental release (such as paint, solvents, and natu- goals. Internally, the Company has established systematic management systems, including the internal systems such as the Wastewater, Waste Gas, and Solid Waste Management Measures, the
ral gas); second, substances that may enter water bodies through leakage and have Measures for the Prevention and Control of Waste Gas Pollution, and the Measures for the Environmental Management of Related Parties, in an effort to continuously refine its greenhouse gas
a significant impact on the aquatic environment (such as various pretreatment chem- (GHG) management mechanisms and facilitate its green, low-carbon transition.
icals, oils, and production wastewater). Based on this, the Company identified and
delineated a total of 36 environmental risk units, including raw material warehouses,
fuel storage facilities, painting workshops, and wastewater treatment stations. It then 3.1 GHG-Related Data
conducted quantitative assessments in accordance with the Methodology for Classi- GHG Emissions in 2025
fying the Risks of Corporate Environmental Emergencies, scientifically determining the
risk levels of corporate environmental emergencies and providing a solid foundation Indicator Unit FY2025 data ?Scope 1 emissions include greenhouse gas emissions from sources directly owned or controlled by the
for implementing differentiated and targeted environmental risk prevention and con- Company, which are primarily direct emissions of fuels such as natural gas and gasoline. Emission fac-
trol measures. Scope 1 GHG emissions ? tCO₂e 17,992.27 tors are sourced from the National Greenhouse Gas Emission Factor Database.
?Scope 2 emissions consist of indirect emissions from purchased energy, primarily from purchased elec-
In terms of risk prevention and control measures Scope 2 GHG emissions ? tCO₂e 56,109.36 tricity. Emission factor data for electricity is sourced from the average emission coefficients of the State
The Company has implemented a “three-tier prevention and control” strategy tailored Grid.
to different risk units. Level 1 prevention focuses on management, achieving daily
Scope 3 GHG emissions ? tCO₂e 53,612.84
?Scope 3 emissions cover Category? 1 — Purchased goods and services, Category? 3 — Fuel- and ener-
oversight through regular inspections, risk signage, video surveillance, and the posting Total GHG emissions tCO₂e 127,714.47 gy-related.
of regulations; Level 2 prevention involves engineering containment measures, such
as installing spill containment trays, berms, and collection channels in critical areas like
chemical and fuel storage facilities to prevent the spread of leaks; Level 3 prevention
focuses on emergency response and collection, with emergency supplies such as fire
sand and absorbent pads on hand to ensure that pollutants can be promptly con-
In promoting low-carbon office practices, we advocate for paperless office and digital meetings to reduce the circulation and use of paper documents, and also reduce office resource con-
tained and collected in the event of an accident.
sumption through measures such as double-sided printing and optimized paper usage. At the same time, we promote the use of high-efficiency office equipment, such as energy-efficient
air-conditioners and energy-efficient computers to reduce energy consumption in the office area, thereby cutting down greenhouse gas emissions. Additionally, we encourage employees
to choose electric vehicles over traditional gasoline-powered vehicles for commuting, helping to reduce carbon emissions from daily commuting.
In 2025, the number of electric vehicles held by employees was 437, an increase of 12.92% compared with 2024, while the number of gasoline-powered vehicles held by employees re-
duced by 3.17% during the same period, resulting in a significant decrease in carbon emissions from employee commuting.
Green Operations and Low-carbon Production
Through systematic measures such as implementing refined energy management, promoting water recycling, strict-
ly controlling pollutant emissions, and carrying out ecological transformation of the industrial park, the Company has
effectively reduced the environmental burden arising from its operations. This has not only comprehensively improved
resource utilization efficiency and ecological resilience but has also established a responsible corporate image through
solid ecological practices, thereby gradually building a sustainable development model with long-term competitiveness
Indicator Unit FY2025 FY2024 FY2023
amid the trend toward green industrial transformation.
Ten Thousand Kilowatt
Purchased electricity
Hours 10,574.70 12,636.45 10,686.08
We have worked hard to reduce resource consumption to the greatest extent at all stages of production for less impact
on the environment, including the management and emission reduction of greenhouse gas, water resource conservation Density of electricity Kilowatt Hours/RMB Ten
consumption Thousand 55.26 75.12? 81.78
and recycling, and the emission reduction of waste and volatile organic compounds, etc. In 2025, we invested a total of
Ten Thousand Cubic
RMB 10.6822 million in environmental protection, an increase of 13.52% compared with 2024, of which RMB 2.6134 million Gas consumption
Meters
was allocated to environmental protection equipment, and RMB 8.0688 million was allocated to environmental protection Density of gas Cubic meter/RMB Ten
operations. consumption Thousand 4.60 5.12? 5.26
Gasoline consumption Liter 185,602.74 372,966.00 443,053.00
consumption Liter/RMB Ten Thousand 0.10 0.22 0.34
Environmental Environmental protection Environmental protection ?The density of electricity consumption in FY2024 is based on data adjusted to a uniform standard.
protection equipment operations ?The density of gas consumption in FY2024 is based on data adjusted to a uniform standard.
Adhering to the philosophy of green development, the Company regards energy conservation and carbon reduction as core tasks for sus-
tainable development. It systematically advances energy-saving technological upgrades across the industrial chain with a focus on improv-
ing energy efficiency and reducing carbon emission intensity, and actively explores green, low-carbon production and operation models.
Environmental Protection Investment Between 2023 and 2025
Indicator Unit FY2025 FY2024 FY2023
Environmental protection RMB Ten
investment Thousand
The compressed air station of BOT projects is upgraded and adopts high-efficiency, energy-saving screw-type air compressors
equipped with variable frequency control systems, effectively reducing energy consumption while ensuring stable operation. The
IoT monitoring modules are added to achieve real-time data collection, remote monitoring, and intelligent early warning. Mean-
while, an intelligent management platform is established to optimize equipment start-up, shutdown, and load distribution based
on data analysis, thereby reducing idle operation and enabling real-time monitoring via mobile devices. A waste heat recovery
system is also available for selection to convert waste heat from the air compressors into heating or hot water for the factory,
To further make energy management standardized and institutional in the Company’s production process, the Company has thereby further improving overall energy utilization efficiency. Following the reconstruction, electricity costs were reduced by
worked out the Energy Management Measures, Equipment and Special Equipment Management Measures, and other relevant RMB 1.8 million in 2025, with energy savings reaching 3 million kilowatt hours. This initiative significantly reduced overall operat-
systems. Moreover, the Company's Energy Efficient Production Leadership Group has given full play to its leadership role to fur- ing costs while simultaneously enhancing system safety and energy efficiency.
ther establish and improve the energy efficient production mechanism and implement the energy efficient production policies
and goals, among others.
LONCIN strictly complies with national laws and regulations, such as the Water Pollution Prevention and Control Law of the People's Republic of The Company strictly complies with national and local environmental protection laws, regulations, and emission standards, systematically
China, the Environmental Protection Law of the People's Republic of China, and the Circular Economy Promotion Law of the People's Republic establishes a comprehensive pollution prevention and control management framework covering environmental factors such as waste
of China, and establishes internal systems, such as the Wastewater, Waste Gas, and Solid Waste Management Measures, the Drinking Water gas, wastewater, solid waste, and noise. It has formulated and implemented a series of internal management systems, such as the
Management Measures, and the Wastewater Discharge Management Measures, to systematically advance the fulfillment of water conserva- Measures for the Prevention and Control of Waste Gas Pollution, the Wastewater Discharge Management Measures, the Hazardous
tion goals, strengthen water management, and standardize wastewater treatment processes. Waste Management Measures, and the General Industrial Solid Waste Management Measures. Through institutionalized management, it
is committed to continuously reducing the environmental impact of its production and business operations, fulfilling its social responsibilities
for realizing corporate sustainable development and advancing ecological civilization.
The Company energetically implements effective water management measures to improve water utilization efficiency and raise em- 3.1 Waste Gas Pollution Prevention and Control
ployees’ awareness of water conservation to reduce the Company’s water consumption and wastewater discharge, thereby ensuring
its sustainable development, meanwhile proactively fulfilling its social responsibilities, and making a positive contribution to the pro- To standardize the management of waste gas emissions and mitigate the impact of pollution, LONCIN has established the
tection of water resources and the ecological environment. In 2025, the total volume of water circulated through the Company’s com- Measures for the Prevention and Control of Waste Gas Pollution, which clearly define the control requirements for waste gas
pressed air stations and cooling towers of all workshops was 7.128 million tons. emissions during production and raw material storage for the Company and its subordinate units, including the followings:
Responsibilities are clearly delineated, with each unit being responsible for managing waste gas from production
Division of and exhaust gas from mobile sources within the area under its administration, and the Safety and Environmental
responsibilities Protection Department being responsible for coordinating the treatment of kitchen fumes, monitoring coordination,
and supervision and inspection.
Water Resource Data of the Company Between 2023 and 2025
For dust generated during the production process, waste gas from painting and boilers, kitchen fumes, waste gas
Prevention and
from furnaces, and exhaust gas from mobile sources, the prevention and control measures are implemented from
control of waste gas
Indicator Unit FY2025 FY2024 FY2023 multiple aspects, including process design, procurement of low-pollution raw materials, operation and maintenance
generated during the of treatment facilities, and standardized management of emission outlets, and priority is given to the selection of
production process
Total water consumption Ten Thousand Tons 116.21 114.76 99.44 sealed processes and electric vehicles, and the enhancement of personnel protection.
Intensity of water
consumption
Tons/RMB Ten Thousand 0.61 0.01 0.76 The Company establishes regular monitoring and emergency response mechanisms, and commissions a third-party
agency to conduct testing and install online monitoring equipment. Production is immediately suspended for rec-
Total wastewater
generated
Ten Thousand Tons 62.51 50.03 56.10 Monitoring and tification in the event of emissions exceeding standards, and complaints are addressed promptly. By combining
supervision self-inspections by each unit with monthly inspections by the Safety and Environmental Protection Department,
Intensity of wastewater supplemented by complete operation and maintenance records, the Company ensures the effective operation and
discharge
Tons/RMB Ten Thousand 0.33 0.30 0.43
continuous improvement of the waste gas management system, thereby fulfilling its environmental responsibilities.
of responsibilities of each unit and the Safety and Environmental Protection Department, aiming to continuously reduce environ-
All wastewater generated by various production processes and living quarters in the factory is collected through a pipeline network and
mental impact and improve overall environmental performance by standardizing the management of production and domestic
transported to the factory’s wastewater treatment station for centralized treatment, specifically including wastewater from die-cast-
wastewater discharge. Specific initiatives include oil-water separation and filtration pretreatment of production wastewater (such
ing demoulding, wastewater from painting and cleaning, wastewater from machining emulsion, oily wastewater from engine testing,
as cutting fluids and emulsions), the treatment of domestic wastewater before being discharged into the municipal sewer sys-
domestic wastewater, etc. The treatment station is equipped with advanced facilities and possesses the comprehensive capability to
tem, formulating a wastewater pipeline network map and standardizing emission outlet management, prohibiting unauthorized
treat various types of wastewater through advanced treatment processes, with a maximum design capacity of 150 tons per hour. After
modifications to the pipeline network and the dumping of solid waste, ensuring compliance with discharge standards through
treatment, the effluent is discharged into the wastewater pipeline network of the industrial park only after consistently reaching the
internal self-inspections, departmental supervision and inspections, and third-party monitoring, and establishing abnormality re-
Tier 3 discharge standard, thus effectively reducing the impact on environment.
porting and emergency response mechanisms to prevent pollutant dispersion. In the meantime, it is required to keep record of the
operation and maintenance of wastewater treatment facilities to ensure process traceability. This management framework sys-
tematically covers the entire process from wastewater generation, pretreatment, treatment, discharge, monitoring, to emergency
response, forming a complete, closed-loop management chain.
The Company stores general industrial solid waste by category and sets environmental protection labels, with storage sites imple- In active response to the national biodiversity conservation strategy, LONCIN integrates biodiversity conservation into its corporate develop-
menting comprehensive measures to prevent leakage, dispersion, and loss, and conducting regular inspections and maintenance ment agenda. It formulates the Implementation Rules for Greening Maintenance Management applicable to the placement and maintenance
of relevant facilities. During the treatment and disposal phases, priority is given to recycling and reuse to minimize environmen- management of indoor and outdoor plants in the industrial park, and the maintenance of an amicable green environment in the industrial park,
tal pollution. The Company organizes competitive bidding of recyclable waste by category, enters into contracts with qualified reclaims vacant land, plants trees, and builds ecological corridors to expand ecological space and enrich habitats, and meanwhile reduces the
disposal entities, clearly defines pollution prevention and control responsibilities, and supervises and reports the whole process, use of glass curtain walls in architectural design to mitigate the risk of bird impacts, thereby effectively preserving species diversity.
including transportation, utilization, and disposal. Regarding record-keeping, waste-generating units establish and refine manage-
ment ledgers, and submit reports on a monthly basis. Meanwhile, on-site self-inspections and self-assessments of storage sites
are conducted on a monthly basis, with the Safety and Environmental Protection Department performing quarterly supervisory
inspections and keeping records, thereby establishing a closed-loop management system covering the entire process.
Case Public Welfare Initiative on the Tree Planting Day Themed “Green Power Systems,
Eco-Friendly Future”
To thoroughly implement the philosophy of green development and fulfill corporate social responsibility, the general Party
branch committees of LONCIN organized and launched a public welfare initiative on the Tree Planting Day themed “Green
Power Systems, Eco-Friendly Future” on March 12th, 2025. Members of the general Party branch committees and Party
The Company clarifies the specific responsibilities of each waste-generating unit in terms of the classification, collection, safe member representatives of each Party branch gathered at Group 1, Wugen Village, Bafu Town, contributing to ecological
transfer, and expenses associated with hazardous waste, and the Safety and Environmental Protection Department is responsible construction through concrete actions. At the event site, participants worked together in an orderly manner, digging holes
for daily supervision. At the operational level, the Company puts forward specific technical requirements for the classification, with shovels, planting saplings, backfilling soil, and watering the trees to ensure they took root. In total, more than 40 sap-
packaging, and temporary storage of hazardous waste. To ensure effective implementation of policies, it establishes a mecha- lings were planted, creating a green barrier that contributes to regional ecological restoration and vegetation recovery. This
nism for self-inspections and joint inspections, and defines corresponding penalties for violations such as the mixed storage of event not only strengthened employees’ awareness of ecological conservation but also conveyed the concept of ecological
hazardous waste, non-compliant disposal, and false reporting or concealment. Through standardized processes, clear division of civilization through practical action, demonstrating the Company’s commitment to promoting low-carbon development and
responsibilities, and closed-loop supervision mechanisms under this framework, the Company achieves full compliance and safe, jointly building an eco-friendly future.
controllable management of hazardous waste throughout the entire process.
Waste Emission Data Between 2023 and 2025
Indicator Unit FY2025 FY2024 FY2023
Total general solid waste Tons 626.16 448.81 189.00
Emission intensity of general solid
waste
Tons/RMB Million 0.03 0.03 0.01
Total recycling of general solid 626.16 448.81 189.00
Tons
waste
Total emission of hazardous waste Tons 5,607.87 4,630.25 487.99
Emission intensity of hazardous
waste
Tons/RMB Million 0.29 0.28 0.03
Continuous Innovation-Driven Green Development
To achieve the balanced development of economic and environmental benefits, the Com-
pany insists on advancing its sustainable development strategy through a systematic ap-
proach, which is specifically manifested in the construction of green factories as the basic
carrier, the development of new energy products as the core direction, and the use of clean
Chongqing
energy as the key pillar. This comprehensive approach has not only significantly reduced the
As the Chongqing Municipality is vigorously promoting the construction of
carbon footprint and resource consumption in corporation operations but has also enabled
a “zero-waste city”, LONCIN actively responds to policy calls, takes the con-
the Company to build differentiated green competitiveness in the industrial chain. Further-
struction of a “zero-waste factory” as its top priority, and comprehensively
more, it provides the industry with a replicable path for green transformation, and effectively
advances green production practices through the establishment of a dedi-
supports society in achieving the coordinated development of economic growth and ecolog-
cated leadership group, systematical arrangement, and meticulous organi-
ical conservation.
zation. Starting from the source, the Company has vigorously implemented
production process innovations, introduced intelligent manufacturing and
automatic equipment, and achieved precise control over production process-
es and refined management of raw materials, effectively reducing material
waste. At the same time, it takes the initiative in selecting eco-friendly mate-
rials and optimizing manufacturing processes, which significantly improves
In terms of waste treatment and resource recycling, LONCIN establishes a
Through its in-depth development and practices in the green manufacturing field, LONCIN comprehensive system for sorted collection and high-value recycling, con-
In recent years, the Company has placed great emphasis on environmental protec-
has obtained the “National Green Factory” certification. With the vision of “A Leading Brand ducts precise disposal of industrial solid waste, hazardous waste, and house-
tion and sustainable development, and continuously increased investment in environ-
with Low-carbon Power System and Intelligent Products”, the Company takes green devel- hold garbage, and achieves efficient resource recovery through professional
mental protection facilities and technology upgrades. In 2025, it implemented multi-
opment as the cornerstone of its high-quality growth. It systematically advances the con- cooperation and its own facilities. The Company also constructs an industrial
ple environmental improvement projects focused on key areas such as wastewater
struction of green factories, establishing a low-carbon, circular manufacturing system that is chain for resource recycling, utilizing technologies such as advanced waste-
treatment, waste gas treatment, and workshop environmental enhancement. These
resource-efficient and environmentally friendly in multiple dimensions. water treatment and waste heat recovery to achieve the recycling use of
initiatives included installing an automatic control system for the wastewater treat-
resources like water and energy. These initiatives have not only improved
ment station, upgrading waste gas treatment equipment, adding integrated grinding
LONCIN took the lead in introducing and promoting the U-shaped production line layout in its energy conservation, emissions reduction, and resource utilization efficiency
platforms, and replacing filter cartridges with high-efficiency ones.
manufacturing system, achieving dual improvements in spatial structure optimization and within the Company but have also facilitated and played a leading role in
production process coordination. In terms of equipment layout, the U-shaped production line Among these, the 12 newly installed integrated grinding platforms can control dust the industry’s green transformation through experience sharing and supply
effectively shortens the distance materials and semi-finished products flow between pro- directly at the source, which effectively prevent dust dispersion and significantly im- chain collaboration.
cesses by closely linking equipment across each process step, which avoids wasting space prove air quality of workshops by capturing and filtering dust at the grinding points in
caused by long-distance transport channels in traditional linear layouts and significantly im- real time. In addition, the Company upgraded its environmental protection equipment
proves the overall utilization of factory space. In terms of staffing and space utilization, the for drying waste gas and replaced it with high-efficiency Donaldson filter cartridges,
U-shaped production line supports the efficient “one-person-multiple-machine” operation which enabled more efficient purification of organic waste gas and welding fumes
model. Operators can operate multiple equipment in a limited area, drastically reducing both generated during the production process, and substantially improved the treatment
the travel distance and the area of scattered operations. This not only boosts labor produc- efficiency of waste gas. These measures collectively drive the Company’s transition
tivity but also reduces the need for dispersed workspaces, further narrowing down non-pro- from an “end-of-pipe treatment” model to an environmental protection model cen-
ductive floor space and enabling the intensive use of both human and spatial resources. tered on “source control and process management.”
Through the reasonable division of functional zones and optimized workshop design, LON- The relevant initiatives have not only enhanced pollutant control capabilities and en-
CIN organically integrates production processes such as components and parts processing sured compliance with production emission standards but have also further improved
and complete vehicle assembly, which reduces the space redundancy in the process and the factory environment and demonstrated the Company’s resolve to actively fulfil its
enables more efficient production activities per unit of land. This not only aligns with the social responsibilities, promote green manufacturing, and achieve high-quality devel-
core requirements of resource recycling in green development but also lays a solid spatial opment. In 2025, its total investment in environmental protection equipment was RMB
foundation for the Company’s sustainable operations. 2.6134 million. Looking to the future, the Company will unswervingly uphold the philos-
ophy of environmental protection, refine its environmental management system, and
contribute to the advancement of ecological civilization.
Factory Site
Currently, in the process of comprehensively advancing the development The Company makes active efforts to engage in the preparatory research layout of a The SR150GT H Model of the first mass-produced hybrid scooter in China, launched by the
of a green manufacturing system, green logistics is a vital link connecting hydrogen fuel-cell all-terrain vehicle, designed for special scenarios such as outdoor op- Company, represents a technology breakthrough and innovative practice in the field of en-
the internal and external operations of green factories and is of systemat- erations and emergency rescue, with hydrogen as the power source and the advantages ergy conservation and emissions reduction for motorcycles. Equipped with China’s first-of-
ic value for achieving environmentally friendly production throughout the of zero emissions and extended range. Equipped with a high-efficiency hydrogen fuel-cell its-kind 48V hybrid system, the vehicle features several core patented technologies with a
full lifecycle. By optimizing resource allocation and reducing environmental system, the vehicle achieves zero carbon emissions compared to traditional gasoline-pow- focus on energy efficiency and low-temperature adaptability: ① A battery heating system.
burden, the Company supports green factories in achieving their clean pro- ered all-terrain vehicles and delivers a 20% or greater improvement in power response, As the only brand in China to equip a motorcycle with such a system, the Company ensures
duction goals, thereby providing sustained momentum for corporate sus- which can also operate stably on complex terrains such as mountains and forests, pro- stable operation even in extreme cold down to -20°C. ② Enhanced charging efficiency, which
tainable operations. viding a reliable green power solution for scenarios where outdoor energy replenishment reduces energy loss during battery charging. ③ Dynamic power output adjustment, which is
is difficult. The successful research and application of this technology effectively resolves a technology exclusive to Wuji in China and can intelligently adjust the degree of motor assis-
At the level of resource recycling and efficiency improvement, green logistics energy supply issues for all-terrain vehicles during high-intensity operations and offers tance based on the user’s actual riding situation. Moreover, the hybrid system of the vehicle
significantly reduces energy consumption and resource waste in logistics new insights into future green mobility solutions. Given that the hydrogen energy industry features the WMTC circulation function, which can recuperate energy during the vehicle’s
activities by adopting low-carbon transportation modes such as rail and sea is still in the developmental stage in terms of costs, infrastructure, and large-scale applica- coasting and braking, and improve charging efficiency and energy storage performance, of-
freight and combining with multimodal transport to optimize network lay- tion, the Company will continuously keep track of technology advancements and prudently fering a new solution for low-carbon mobility.
outs. The Company consolidates transportation needs and optimizes route evaluate the feasibility of commercial production based on actual conditions.
planning to improve vehicle utilization efficiency and reduce empty-loaded
rates, enabling more precise resource allocation and creating synergy with
the green factory’s goal of efficient resource utilization.
Regarding green packaging, the Company promotes the use of recyclable
cardboard boxes as packaging materials for products such as motorcycles,
engines, and general machinery, which is a common practice for reducing
waste generation and minimizing environmental impact. Such packaging
not only enables the recycling and regeneration of used packaging through
specialized channels, creating a closed-loop resource system, but also re-
duces the Company’s procurement costs of raw materials to some extent,
thereby unifying environmental benefits with economic performance. In
cycles, engines, and general machinery products, including 1.317 million
motorcycles, 3.3495 million engines, and 3.3223 units of general machin- Hydrogen-Powered All-Terrain Vehicle Hybrid Scooter SR150GT H
ery. A total of 6,596,914 cardboard boxes, 1,385,307 wooden pallets, and
tively improving the packaging recycling rate.
tive design and won the 2025 Red Dot Award for Product Design. This prod-
The Company takes leading the sustainable development as its respon- uct achieves breakthroughs in energy efficiency and sustainability: equipped
sibility and is dedicated to developing and promoting green new energy with an advanced battery management system and efficient heat dissipation
products. To follow the global energy transition trend, we actively explore technologies, it utilizes a cross-flow fan and natural-color injection molding to
innovative technologies and are committed to providing environmentally significantly improve heat dissipation and reduce energy consumption during
friendly, efficient, and reliable clean energy solutions. By integrating ad- operation. The EP350 adheres to the principles of green manufacturing, uti-
vanced concepts and technologies, the Company continuously enriches lizing eco-friendly materials and a V0-grade flame-retardant shell. Combined
its product matrix to meet diverse market demands. We are dedicated to with automotive-grade battery cells and high-capacity lithium batteries, it
collaborating with all sectors of society to jointly promote the widespread ensures product safety and durability while significantly reducing its carbon
application of green energy and contribute to creating a cleaner, more sus- footprint and resource consumption. The EP350 Won the EP350 Portable Power Station Product
tainable future. 2025 Red Dot Award
Lightweight Design the GDI Engine
The LONCIN DS800X Rally integrates the philosophy of environmental protec- LONCIN successfully ignited the first GDI (Gasoline Direct Injection) engine
tion into systematic lightweight design and material innovation. The vehicle in China’s motorcycle industry, which is the achievement of six months of
uses aluminum for key components such as swingarm and side stands, which round-the-clock endeavors of more than 20 technical research engineers
are more than 25% lighter than comparable steel parts, resulting in a curb of the Company, symbolizes a significant breakthrough in the localization
weight of 248 kg. This comprehensive lightweight design directly reduces gas- and cleanliness of China’s motorcycle engine technology, and demonstrates
oline consumption and carbon emissions, effectively alleviating environmental the Company’s commitment to its brand vision of “A Leading Brand with
pressure. Additionally, the body panels utilize new high-toughness materials, Low-carbon Power System and Intelligent Products.”
enhancing the vehicle’s impact resistance and thereby reducing the frequency
Facing technical challenges such as high engine speeds and compact space
of replacement for vulnerable parts and lowering maintenance costs. The use
constraints in motorcycles, the Company’s team spared no efforts to make
DS800X Rally Product of rotomolded materials such as HDPE improves the recyclability of compo-
breakthroughs in four core technologies: optimizing the combustion sys-
nents and promotes resource recycling. From production and use to recycling,
tem, adapting to high-speed operating conditions, streamlining the overall
the DS800X Rally employs an integrated design philosophy of “lightweight, du-
structure, and ensuring reliability through CAE simulation. All this not only
rability, and recyclability”, which not only enhances product performance and
aligns with the industry trend toward higher power, lower fuel consumption,
economic efficiency but also significantly reduces the vehicle’s environmental
and lower emissions in the internal combustion engine sector but also lays
footprint across its entire lifecycle and demonstrates the value of sustainable LONCIN Successfully Ignited the GDI Engine
a solid foundation for the Company to seize technological leadership and
mobility for the future.
support the transformation and upgrading of China’s motorcycle industry.
The Company focused on the coordinated development of high performance Application
and environmental friendliness, and launched the XWolf 1000Mud all-terrain
In respect of low-carbon energy, LONCIN
vehicle. Equipped with an intelligent power distribution system and a full-
has actively laid solar photovoltaic panels
torque transmission system, the vehicle achieves efficient power utilization
on the roofs of the factory, vacant land,
through high torque output at low RPM. Combined with the optimized thermal
and other areas to make full use of re-
management design, it enhances engine operating efficiency and energy con-
newable energy sources. Currently, the
sumption performance. At the same time, it strictly adheres to global environ-
photovoltaic power generation capacities
mental standards, having passed the U.S. Environmental Protection Agency’s
are 1,260.80 kWh per day and 2,795.68
XWolf 1000Mud (Mud Edition) (EPA) emissions certification, the California Air Resources Board’s (CARB) fuel
kWh per month, the cumulative photovol-
All-Terrain Vehicle Product vapor emissions standards, and the EU T3 emissions certification, and putting
taic power generation capacity is 843.90
the concept of green research and development into practice. By enhancing
MWh, and the cumulative carbon emission
off-road performance and adaptability to complex terrains while balancing
reduction is 229.54 tons. Overview of Photovoltaic Power Generation Data
energy efficiency optimization and environmental compliance, the Company
made efforts to create green products with outstanding performance and sus-
tainability.
People-Oriented
Development for Social
Harmony
Response to the United Nations SDGs:
Employee Empowerment and Value
Realization
LONCIN adheres to the concept of “people-oriented” and is committed to fostering an open and col-
laborative organizational environment with mutual trust and care. The Company regards talent devel-
opment as the cornerstone of corporate growth. By providing comprehensive career paths, integrat-
ing training resources, and fostering an innovative atmosphere, it provides employees with a broad
platform for development while prioritizing work-life balance and mental well-being. Through concrete
actions, LONCIN practices the concept that “talent is the primary resource”, respects and safeguards
employees’ rights and interests, and promotes mutual growth and win-win development of employees
and the Company.
LONCIN strictly abides by the Labor Law of the People's Republic of China, the Law of the People's Republic
of China on the Protection of Minors, and other national laws and regulations, and based on the realities of
corporate management, has formulated and issued the internal systems such as the Employment Contract
Management Practices and the Recruitment and Hiring Management Practices, which comprehensively in-
volve key management areas including personnel employment, remuneration and benefits, assessment and
promotion, and separation from service. On this basis, the Company has established a standardized and or-
derly human resources management framework.
The Company has always regarded “fairness and justice” as the core principle of corporate culture and internal
management, which serves not only as a crucial prerequisite for safeguarding the basic rights and interests
of employees, but also as a solid foundation for sustainable development of the Company. In its daily opera-
tions, the Company strictly fulfills national legal requirements regarding remuneration payment, leaves and
by Gender Distribution by Age by Education by Position
vacations, welfare benefits, occupational safety and health, social insurance, etc., and fully guarantees the
(Unit: %) (Unit: %) (Unit: %) (Unit: %)
legitimate rights and interests of employees. Throughout the entire management process, including employee
recruitment, promotion, and remuneration determination, the Company consistently upholds objective and 2% 8%
uniform evaluation criteria, resolutely eliminates all forms of bias and discrimination, and rigorously enforces 17% 15%
regulations prohibiting the employment of child labor, the hiring of minors aged under 16 (including interns),
strictly prohibits forced labor, and opposes any form of differential treatment. Meanwhile, it effectively ensures 28%
equal pay for equal work between men and women, standardizes working hour management, and ensures
that the entire employment process is lawful, compliant, fair, and transparent. In 2025, it continuously ad-
vanced the development of a diversified workforce system.
Master's degree and above Production staff Administrative staff
Currently, there are 102 veterans and 14 employees with As of the end of the reporting period, Bachelor's degree Sales staff Management cadres
Male Female Aged under 30 Aged 30-40
disabilities among the workforce, fully demonstrating the there were a total of Junior college
Aged 40-50 Aged 50 and Technicians Financial staff
Company’s high emphasis on fulfilling social responsibil- above Secondary vocational schol/High
school and below Other staff
ities and deepening its commitment to humanistic care. employees
Employee Composition and Distribution
Through a systematic promotion mechanism and a diverse training system, LONCIN continuously empowers employee growth, laying a solid foundation for talents available for the Company’s high-quality development.
LONCIN establishes a dual-track career development system consisting of “the man- LONCIN adheres to the development concept that "talent is the primary re-
agement track and the professional track” to systematically promote employee ad- source", places employee growth at the core of corporate strategy, and is
vancement and growth. This system is performance-driven and covers all positions committed to building a comprehensive, hierarchical, and classified talent
within the Company, aiming to achieve the goals of producing a steady stream of training system. Centering on multiple dimensions such as the improvement
excellent leaders and a steady stream of excellent employees. Under this dual-track of professional skills, advancement of management capabilities, develop-
mechanism, employees may opt for the vertical development on the management ment of leadership and cross-domain collaboration, the Company system-
track or the improvement of their professional skills in various specialized fields, en- atically carries out regular and diversified training programs, with a total
abling both horizontal and vertical career advancement. The Company implements special training fund investment of RMB 2.8409 million for the whole year,
a dynamic development mechanism that allows for promotion and demotion, lateral providing solid support for talent development.
transfers, and hiring and separation, ensuring flexibility in talent flow and the contin-
uous stimulation of organizational vitality. Additionally, to enhance employees’ pro- In 2025, the Company continued to strengthen its training system and its im-
fessional skills, LONCIN has partnered with institutions such as the Chongqing Me- plementation, delivering a total of 4,369 employee training courses through-
chanical Technician College to conduct vocational skills training, in a bid to provide out the year and accumulating 25,870 training hours. Through a systemat-
institutional safeguards and practical support for employees’ career development ic and full-coverage training mechanism, the Company has empowered all
and further solidify the foundation for talent echelon construction. positions from frontline employees to the management team, with the per
capita training duration reaching 2.50 hours. This series of measures has
The Company places great emphasis on young talent cultivation and talent echelon effectively stimulated employees' potential, clearly planned career devel-
construction. To strengthen the talent foundation for strategy implementation and opment paths, not only promoted the improvement of employees' personal
build a high-caliber workforce, it has launched the U30 Young Talent Development values, but also forged a talent team with a reasonable structure and excel-
Program, with a focus on exploring and nurturing elite employees aged under 30. lent quality for the Company, injecting sustained impetus into the high-qual-
The program is open to all employees, with selection based on core criteria including Employee Career Development Paths ity development of the enterprise.
basic qualifications, work performance, capabilities, and potential. It aims to pick
out young talents with professional quality, professional proficiency, and develop-
ment potential. In 2025, the Company rigorously selected 50 outstanding young em-
ployees from 175 candidates to join the talent echelon. It established a systematic
training system targeted at the selected young talents, and conducted specialized
training for them by considering the Company’s strategic planning, business and op-
Special training fund Employee training Throughout the year The per capita training
erating needs, and personal development goals of employees. Through the provision courses and accumulating duration reaching
of a tiered training and development mechanism, the Company fully stimulated the
innovative vitality and growth potential of young employees, built a pool of core,
RMB million sessions hours hours
young talents to support its sustainable development, and promoted mutual growth
between young employees and the Company.
Warm Care, Greater Happiness Case Improvement of Employee Workwear, Meals, Accommodation, and Commuting
LONCIN adheres to the concept of “people-oriented”, committed to fostering an To genuinely enhance employees’ quality of life and well-being, and to foster a harmonious and
open, collaborative, warm, and inclusive organizational environment. Through stable working environment, LONCIN has launched a series of improvement initiatives focused on
comprehensive employee welfare programs and a rich array of cultural activities, employees’ daily needs—covering workwear, meals, accommodation, commuting, and the overall
the Company strengthens employees’ sense of belonging and enables mutual campus environment.
growth between employees and the organization.
Workwear：The Company has rolled out new uniforms for all employees to improve comfort and
partnered with a professional laundry service to offer free cleaning of work uniforms.
outsourced for ten years—back under direct management and invested in a full-scale renovation
to significantly elevate both food quality and dining experience. Additionally, the Company trans-
LONCIN has formulated the Employee Welfare Management Measures to ensure
formed approximately 4,000 square meters of idle land into a vibrant vegetable garden—plant-
sustained care for its employees through institutionalized arrangements. The Com-
ed and harvested by employees themselves—creating LONCIN’s signature “Happy Farm” to supply
pany consistently places the well-being of all employees first, integrates humanistic
fresh, healthy, and eco-friendly produce.
care into its corporate culture, and maintains long-term attention to employees’
daily lives, physical health, and mental well-being, delivering warmth through sys-
Accommodation：Addressing dormitories over ten years old with outdated facilities, the Company
tematic employee care programs and precision-targeted assistance. The Company
has invested hundreds of millions of RMB in comprehensive renovation and reconstruction, dramat-
regularly carries out special care initiatives—such as the “Cooling Relief” outreach
ically improving living conditions and residential experience for employees.
during hot seasons and assistance programs for employees in hardship before the
Spring Festival—responding effectively to employee needs through material sup- Commuting：he Company has replaced all employee shuttle buses with vehicles operated by
port and financial aid. Chongqing Public Transport Group, equipped with enhanced safety management systems and re-
al-time in-vehicle monitoring to strengthen commuting safety.
The Company has formulated the Implementation Rules for the LONCIN Union
Warmth Initiative, providing comprehensive care across all scenarios—including
holiday greetings on statutory festivals, birthday acknowledgments, autumn edu-
cational assistance, and support for serious illnesses or disaster-related emergen-
cies—and implementing categorized, tiered, and precision-targeted aid for employ- In terms of environmental enhancement,
ees in difficulty, thereby effectively safeguarding employee rights, reflecting the the Company has organized tree-planting
Company’s caring spirit, and continuously building a warm, reliable employee care and greening initiatives to continuously im-
system. prove the campus ecosystem; it has also
established a “Workers’ Orchard,” open for
To strengthen a sustainable incentive mechanism, energize core teams, and pro-
fruit-picking by outstanding frontline pro-
mote mutual growth between the Company and its employees, LONCIN launched
duction staff, enabling employees to share
its third Employee Stock Ownership Plan (ESOP) during the reporting period and
in the fruits of corporate growth and ecolog-
completed all required approval procedures, with a total scale of approximately
ical development.
RMB 400 million. This marks the Company’s first major long-term employee incen-
tive initiative in eight years, designed to further energize the motivation and cre-
ativity of senior management and key personnel, attract and retain top talent, and Through these integrated initiatives, the Company—grounded in employees’ real-life needs—continuously refines its welfare system, effectively strengthening their sense of belonging,
thereby build the strongest internal foundation for sustainable development. happiness, and team cohesion, thereby laying a solid foundation for sustainable business development.
Case Uniting Hearts, Igniting Love – Establishment of Case The “Cooling Care” Initiative Case Spring Festival Care for Employees in Need
the LONCIN Care Fund
On November 21st, 2025, led by the Company’s labor union, LONCIN estab- On August 5th, 2025, the Party Committee of LONCIN organized a "Summer On the occasion of the Spring Festival, the Company launched a Spring
lished the LONCIN Caring Fund to comprehensively strengthen employee Cooling" care activity for staff working in high temperatures. Members of the Festival care activity for employees in need under the theme of "Delivering
care initiatives, build a distinctive “warmth project,” and carry forward the Party Committee formed several care groups and visited various high-tem- Warmth and Showing Care". It sent consolation supplies including grain and
cherished tradition of “when one is in need, help comes from all sides.” The perature work sites and frontline positions to greet employees who kept oil, milk, and toiletries to the families of employees facing hardships, truly
fund is primarily used to support employees in hardship, provide emergency working in the scorching heat, presenting them with heatstroke prevention bringing the organization’s care and Spring Festival blessings to their hearts.
assistance in unexpected situations, and deliver various forms of care and and cooling supplies and sincere care from the organization. The activity This care activity not only made employees in need deeply feel the warmth
consolation, offering timely and targeted support and protection. The estab- benefited more than 200 employees, effectively delivering care and warmth of the corporate family, but also effectively boosted morale, enhanced team
lishment of the LONCIN Caring Fund has further built a solid defense line for to frontline staff, further enhancing team cohesion and motivating employ- cohesion and sense of belonging, and fully demonstrated the Company’s
employees to withstand risks, conveys the Company’s sincere care for its ees’ work enthusiasm. people-oriented development philosophy.
staff, and deeply roots the cultural concepts of mutual help, friendship and
solidarity. The Company will safeguard employees' well-being with concrete
actions, continuously unite the people and pool strength, injecting warm and
enduring impetus into the high-quality and sustainable development of the
enterprise.
Case Movie Screening for Dormitory Employees
The Company strives to build a diversified platform for employee activities. By organizing a variety of cultural and sports
events such as themed performances, group movie screenings and sports competitions, it enriches employees’ spiritual life On July 1st, 2025, to celebrate the CPC Founding Day and further
and enhances team communication and cohesion. These activities not only provide employees with opportunities for self-dis- strengthen cohesion among dormitory residents, the Company or-
play and collaboration, but also further foster a positive, supportive and caring organizational atmosphere, enabling every ganized a themed movie screening activity for over 200 employees
employee to feel the Company’s support and sense of belonging. living in dormitories. The group movie screening created a warm and
harmonious cultural atmosphere, effectively enhancing employees’
sense of belonging and team cohesion. Well-organized, this activ-
ity not only enriched employees’ spare time life but also promoted
Case Staff Singing Competition
corporate culture development, playing a positive role in boosting
On April 30th, 2025, to celebrate the International Workers' Day, the Company held a large-scale cultural employee cohesion and facilitating the harmonious development of
performance themed "Glory in Labor, Greatness in Creation, Building a Better Future", attended by nearly the Company.
tribute to all workers with passionate singing and graceful dancing. This activity not only enriched em-
ployees’ cultural life and promoted the spirit of model workers and craftsmanship, but also made every
worker feel their own value and the respect of the Company, further inspiring all staff to love their jobs,
work with dedication and strive forward in unity.
Case Dormitory Staff Badminton Competition
In 2025, to further develop the employee welfare system and
enrich the cultural and recreational activities of dormitory staff,
the Company organized the first “Show Your Skills in Badminton,
Unite for the Future” Badminton Tournament for dormitory staff.
The event attracted a total of 32 male and 8 female employees.
On the field, the participants competed with courage and team-
work, fully demonstrating a high-spirited, positive, and enterpris-
ing demeanor. This event further advanced the development of
our corporate culture centered on “building together, sharing to-
gether, and celebrating together,” fostering a sense of unity and
cohesion through heartwarming initiatives.
Life First, Safety Foremost
LONCIN has always taken occupational health and safety management as the fundamental
guarantee for enterprise development. By establishing a modern management system that
covers all employees and runs through the entire process, the Company systematically fulfills
its primary corporate responsibilities. The Company continues to strengthen the prevention
and Control Mechanism
and control of occupational hazards, improve the employee health monitoring mechanism, LONCIN has formulated the System for Monitoring and Analysis of Occupational Hazards,
and conduct in-depth safety training and emergency drills. It promotes the transformation of conducting regular monitoring and analysis in workplaces with occupational disease risks.
the health and safety management model from post-incident response to pre-incident pre- Case Work Safety Month Training
The Company formulates an annual monitoring plan specifying locations, items and frequen-
vention and systematic governance, effectively providing solid support for the physical and cies, and systematically identifies and assesses various occupational hazards such as dust,
mental health of employees and the stable operation of the Company. In 2025, the Company noise and chemical toxicants through a combination of regular testing and daily supervision. In 2025, LONCIN organized special training for the Work
recorded zero work-related fatal accidents. Test results are rigorously analyzed against national limit standards. Any issues identified are Safety Month, aiming to further strengthen the safety
promptly disclosed, and targeted corrective actions are organized. Meanwhile, by establish- awareness of all employees and standardize safe opera-
ing comprehensive monitoring archives, the Company is driving a shift in occupational hazard tion practices. This special training is a key part of LONCIN
control from passive response to proactive prevention and systematic governance. in fulfilling its primary responsibility for work safety. It has
not only consolidated the Company’s safety management
foundation, but also laid a solid foundation for continuous-
LONCIN strictly abides by the Law of the People's Republic of China on Prevention and Control
ly fostering a safety culture featuring "prevention first and
of Occupational Diseases and other laws and regulations, and has systematically established an
participation by all" and ensuring the safe and stable oper-
Management
employee health protection mechanism that covers all employees and all processes. The Company
ation of the enterprise.
has formulated and implemented internal systems such as the Measures for Occupational Health
Management, clarifying management responsibilities and standardizing work procedures. A com-
plete institutional management system has been formed, covering monitoring and assessment of
hazards in the workplace, occupational health examinations, hazard notification and warning, man- LONCIN adheres to the people-oriented principle and regards employee safety and health as the
agement of personal protective equipment, as well as occupational health publicity, education and basic premise and important guarantee for enterprise development. The Company strictly adheres
file management. This mechanism aims to effectively prevent and control occupational hazards, to domestic and international standards such as ISO 45001 and GB/T 45001-2020. It has formu-
continuously improve the working environment, and earnestly safeguard the physical and mental lated and implemented a series of core systems covering the full process of safety management,
health and legitimate rights and interests of every employee through systematic and standardized including the Safety Production Responsibility System, the Safety Training and Education System,
measures.
and the Accident Risk Identification and Hidden Danger Investigation and Management System.
Furthermore, the Company continuously improves its occupational health and safety management
tation and risk control to emergency response. Through regular training, facility upgrades, and
multi-level supervision, the Company translates institutional requirements into concrete actions.
LONCIN has formulated and implemented the specific management requirement titled Orga-
nization and Implementation of Occupational Health Examinations. Through clarifying respon- This effectively safeguards employee safety and fosters a safety culture characterized by preven-
sibilities, standardizing procedures, and establishing continuous follow-up mechanisms, the tion first and participation by all.
Company conducts specialized health surveillance for employees exposed to occupational
hazards. Annually, the Company formulates examination plans based on the categories and
exposure levels of hazards. It organizes specialized health checks for pre-employment, in-ser-
vice, and pre-departure stages, strictly determining the items and frequency in accordance
with national standards. Furthermore, the Company promptly addresses abnormal results and
maintains long-term occupational health records, thereby systematically fulfilling its primary Focusing on risk points across all aspects of production and operations, the Company con-
responsibility for the prevention and control of occupational diseases. ducts targeted, diversified training sessions. These include forklift operation for engine han-
Meanwhile, the Company attaches importance to the comprehensive health management dling, three-level safety training for new employees, and interpretations of the Work Safe-
of employees, uniformly organizes routine health examinations for all staff every year, and ty Law. By combining theoretical instruction with practical drills, the Company continuously
establishes and maintains personal health records accordingly. This provides a basis for imple- strengthens safety awareness across the board. This approach enhances employees' abili-
menting scientific and systematic health support. By combining routine physical examinations ty to identify and handle various safety hazards, ensuring that safety concepts are deeply
with specialized occupational health examinations, the Company has built a health manage-
rooted in everyone's mind and laying a solid ideological foundation for production and op-
ment mechanism covering all employees and running through their entire career cycle, effec-
erations. In 2025, the Company organized a total of 470 training sessions covering 15,093
tively safeguarding employees’ physical and mental health. In 2025, the Company achieved
full coverage of physical examinations for all on-the-job employees. person-times, with a training coverage rate of 97.7%.
Case Safety Training on Forklift Operation for Engines
The Company has formulated a series of rules and regulations, including the Emergency Plan for Production Safety Accidents, the Measures for Emergency Preparedness and Response Man-
In March 2025, the Company organized a special safety training agement, and the Procedures for the Control of Emergency Preparedness and Response, clarifying the emergency organizational structure, response levels, incident handling procedures, and
on forklift operation for engine handling, and provided systematic support measures. The Company carries out emergency drills on a regular basis, organizing a total of 87 drills throughout the year, continuously testing the practicality and operability of the
lectures on safety standards for the entire process of forklift oper- emergency plans and optimizing incident handling procedures. In addition, the Company has fully equipped itself with a comprehensive range of emergency resources—including fire extin-
ations to frontline operators and relevant management personnel. guishers, first aid kits, emergency response vehicles, and other essential supplies—and has established a robust emergency communication mechanism. This ensures rapid and scientifically
The training elaborated on dangerous scenarios and standard op- sound responses to emergencies such as fires, explosions, or chemical leaks, thereby minimizing personnel injuries and property damage to the greatest extent possible, and providing solid
erating procedures during operations, further enhancing the safe- institutional and hardware support for the Company’s safe and stable operations.
ty awareness and practical operation capabilities of participants.
This training helps to clarify the primary responsibility for work
safety, improve the safety literacy of frontline operators, and lay
a solid foundation for preventing vehicle-related injuries and en-
suring safe and stable production operations.
Case Oil Depot Safety Emergency Drill
In July 2025, the Company organized a special emergency drill for oil leakage, fire,
and explosion accidents targeting oil depot safety. The drill simulated the entire
process—from leak detection and initial response to alarm activation, firefighting,
and personnel evacuation—effectively validating the feasibility of on-site emergen-
cy procedures, enhancing coordination and response capabilities among relevant
personnel under emergency conditions, and further strengthening the safety assur-
ance foundation for the Company’s key operational areas.
Case Evacuation Drill
In 2025, the Company's Technology Center organized the annual comprehensive
evacuation emergency drill. The drill strictly followed the emergency plan proce-
dures and simulated the entire process of personnel evacuation, on-site command,
and emergency response in the event of a sudden emergency. Participants evacu-
ated in an orderly manner in accordance with the established escape routes, and
personnel in key positions quickly fulfilled their emergency duties. The entire pro-
cess was characterized by rapid response, orderly organization, and appropriate
handling. This drill effectively tested the practicality and operability of the emergen-
cy plan of the Technology Center, further strengthened the safety risk awareness
and emergency avoidance capabilities of all staff, and laid a solid foundation for
ensuring the safety and stability of scientific research and production activities.
United in Purpose, Spreading LONCIN’s Warmth
LONCIN actively fulfills its social responsibilities, integrating corporate development into the overall national strategy and committing itself to
rural revitalization and community development. Relying on its industrial resources, the Company supports rural development and urban-ru-
ral integration through a series of practical measures, advancing the coordinated development of the enterprise and society while fulfilling
its social obligations.
The Company continuously invests in local public welfare causes, focuses on the well-being of special groups, conveys corporate care through con-
crete actions, and upholds the responsibility philosophy of co-building and shared benefits. On the other hand, the Company strives to integrate
public welfare practices with rural development. Leveraging its organizational and brand advantages, it helps broaden the paths of rural develop-
ment through innovative models, effectively promotes industrial revitalization, and achieves efficient synergy between corporate social responsibility
and sustainable development. In 2025, LONCIN’s cumulative donations amounted to RMB 110,000. Through sustained investment in public welfare,
the Company fulfills its social responsibilities, gives back the fruits of corporate development to society, and demonstrates its corporate culture of
"co-building and shared benefits" and sense of responsibility with tangible actions.
Case "Caring for the Disabled, Compassion in Action" Donation Drive
In January 2025, LONCIN actively responded to the donation drive "Caring for the Disabled, Compassion in Action" launched by
the Disabled Persons’ Federation of Jiulongpo District, donating RMB 10,000 to purchase warmth kits. The donation brought care
to disadvantaged families in the district, including households with multiple disabled members, families where the elderly support
disabled relatives, and households with persons with severe disabilities at Level 1 or Level 2. This donation not only provided prac-
tical living support to the beneficiaries, but also demonstrated the Company’s commitment to continuously caring for vulnerable
groups and contributing to common prosperity.
Case Live-Streaming for Rural Revitalization
In 2025, the Party Branch of LONCIN’s engine business unit actively pro-
moted the deep integration of Party building and business operations by
launching an innovative live-streaming initiative titled “Party Leadership,
Craftsmanship for Farmers” to support rural revitalization. Leveraging the
Company’s brand influence, the initiative expanded sales channels and in-
jected new impetus into rural revitalization with a "red engine". This prac-
tice not only effectively translated the political advantages of the Party
organization into practical momentum for rural development, but also ena-
bled Party members to further uphold their original aspiration and sense of
mission while serving the people, realizing effective synergy among Party
building, social responsibility, and corporate development.
Appendix 1: Key Performance Indicators
Indicator Unit FY2023 FY2024 FY2025 Indicator Unit FY2023 FY2024 FY2025
Economic Performance Sulfur oxides Tons 0.33 0.02 0.07
Operating income RMB Ten Thousand 1,306,648.13 1,682,224.10 1,913,515.45 VOC emissions Tons 21.39 12.21 27.61
Net profit RMB Ten Thousand 58,342.18 112,127.17 164,775.04 Ammonia Tons 0.04 0.10 0.15
Total tax payments RMB Ten Thousand 53,821.44 91,449.17 126,243.45 Water Water consumption Tons 994,400.00 1,147,600.00 1,162,127.13
Resources
Total cash dividends (including tax) RMB Ten Thousand 20,535.42 82,141.67 143,747.93 Utilization Intensity of water consumption Tons/RMB Ten Thousand 0.76 0.01 0.61
Cash dividends per 10 shares RMB Ten Thousand 1.00 4.00 7.00 Total wastewater discharge Cubic meter 560,974.00 500300.00 625,060.00
R&D investment RMB Ten Thousand 52,397.51 53,453.00 46,855.88 Chemical oxygen demand (COD) Tons 66.98 58.54 49.86
Overseas income RMB Ten Thousand 855,353.00 1,088,973.54 1,286,835.44 Five-day Biochemical Oxygen Demand (BOD5) Tons 28.58 15.71 17.82
Environmental Performance Suspended substance Tons 16.82 45.19 29.60
Scope 1 GHG emissions—direct tCO₂e / 18,932.44 17,992.27 Ammonia nitrogen Tons 7.45 4.27 2.02
Water
Scope 2 GHG emissions—indirect tCO₂e / 136,348.10 56,109.36 Pollution Total phosphorus Tons 0.64 0.84 1.08
Discharge
Scope 3 GHG emissions—upstream
tCO₂e / / 53,612.84 pH / 7.12 7.14 6.91
and downstream
Respond- 0.08
Total GHG emissions tCO₂e / 155,280.54 127,714.47 Anionic surfactants Tons 0.06 0.16
ing to
Climate Scope 1 GHG emissions intensity tCO₂e/RMB Ten Thousand / 0.01 0.01 Fluoride (measured as F-) Tons 0.66 0.95 1.01
Change
Scope 2 GHG emissions intensity tCO₂e/RMB Ten Thousand / 0.08 0.03 Oil type Tons 1.38 3.85 135.49
Scope 3 GHG emissions intensity tCO₂e/RMB Ten Thousand / / 0.03 Formaldehyde Tons 0.11 0.00 0.13
GHG emissions intensity tCO₂e/RMB Ten Thousand / 0.09 0.07 Total recyclable waste Tons 189.00 448.81 626.16
Gas Cubic meter 2,677,584.00 2,566,771.00 8,800,000.00 Total general solid waste Tons 189.00 448.81 626.16
Petrol Liter 443,053.00 503,741.00 185,602.74 Total recycling of general solid waste Tons 189.00 448.81 626.16
Use of Waste
Energy Renewable energy Kilowatt Hours 28,760,965 162,520.00 784,500.00 Manage- Emission intensity of general solid waste Tons/RMB Million 0.01 0.03 0.03
ment and
Purchased electricity Kilowatt Hours 40,691,138.00 59,197,270.00 105,747,000.00 Pollutant Total hazardous waste Tons 487.99 4,630.25 5,607.86
Prevention
Total waste gas emissions Cubic meter 2,579,906,290.00 2,572,050,400.00 2,759,370,220.00 Total hazardous waste incineration Tons 129.11 955.91 686.42
Gaseous Particulate matter Tons 18.48 7.03 9.49 Total hazardous waste recycling Tons 358.88 3,276.29 3,761.30
Pollution
Emissions Non-methane hydrocarbons Tons 3.38 8.44 9.45 Emission intensity of hazardous waste Tons/RMB Million 0.03 0.31 0.29
Green
Nitrogen oxides Tons 1.27 0.47 1.86 Packaging materials used - wooden pallet Piece 650.00 136,390.00 1,385,307
Package
Indicator Unit FY2023 FY2024 FY2025 Indicator Unit FY2023 FY2024 FY2025
Packaging material used - wooden buckboard box Piece 30,000 1,923 2,432 Governance Performance
Green
Packaging material used - plastic box Piece 10,101 2,004 7,846,308 Number of shareholders' meetings held Times 5 5 3
Package
Packaging materials used - cardboard box Piece 2,018,796 4,607,451 6,596,914 Number of board meetings held Times 7 5 9
Number of electric private car ownership Vehicle 193.00 387.00 437.00 Number of meetings of the Audit and Risk Control Committee Times 4 5 4
Trans-
portation Number of fuel private car ownership Vehicle 2,456.00 3,152.00 3,052.00 Number of meetings of the Nomination Committee Times 5 2 3
Corporate
Environmental protection investment RMB Ten Thousand 880.00 940.99 1,068.22 Number of meetings of the Remuneration and Appraisal Committee Times 1 1 3
Gover-
nance
Social Performance Number of meetings of the Strategy and Investment Committee Times / 1 1
Total number of employees Person 8,932 10,529 10,348 Number of meetings of the Budget Management Committee Times / / 1
Master's degree and above Person 224 232 238 Number of meetings of the Related Transaction Committee Times / / 1
Bachelor's degree Person 1,393 1,571 1,597 Number of members of the Board of Directors Person 9 9 9
Education
Junior college Person 1,350 1,628 1,565 Number of independent directors Person 3 3 3
Secondary vocational school/High school and below Person 2,611 3,167 6,948
Number of trainings during the year Times 8,165 4,540 4,369
Total number of employees trained
Number of basic level employees trained
Person
Person
Appendix 2: Index of Indicators
Mid-level managers trained Person 365 362 367
Employee Sustainability Reporting Guidelines
Senior managers trained Person 56 52 47 Reporting Chapters GRI
Training for A-share Listed Companies?
I. Laying a Solid Foundation for Governance, Ensuring
Total hours of employees trained Hours 16,200 20,334 25,870 Steady & Long-Term Development Through Compliance
Average length of employee training Hours 2 2 2.50 1. Wholehearted Loyalty to the Party, Steering LONCIN on a Steady Course
Total number of hours of basic level employees trained Hours 11,990 16,194 21,730 (1) Party Organizational Structure 2-9
Total hours of mid-level managers trained Hours 3,650 3,620 3,670 (2) Party-building Activities 205-2，404-2
Total hours of senior managers trained Hours 560 520 470 2. Building a Solid Foundation for LONCIN
Occu- Number of safety training sessions conducted Times 385 443 470 2-9，2-10，2-11，2-12
(1) Governance Structure
pational
Health and
Safety Number of emergency drills Times 30 32 87 (2) Diversification of the Board of Directors 2-9，2-10
?During the reporting period, the Company had no instances of overdue payments to small and medium-sized enterprises; therefore, the
issue of “equal treatment of small and medium-sized enterprises” does not apply to the Company.
Reporting Chapters GRI Sustainability Reporting Guidelines Reporting Chapters GRI Sustainability Reporting Guidelines
for A-share Listed Companies for A-share Listed Companies
ence to Operational Bottom Lines Protecting Our Earth
(1) Risk Management and Internal Control 2-13, 2-30 Anti-commercial Bribery and Anti-Corruption (1) “Carbon Peaking and Carbon Neu-
trality” Goals
(2) Business Ethics and Anti-Corruption Anti-commercial Bribery and Anti-Corruption,
(2) Climate Risk Management and
(3) Data Security and Privacy Protection 103-2, 418 Data Security and Customer Privacy Protection TCFD Framework Response
and Strengthening Value Communication
(1) Disclosure of Information Mechanism 2-1, 205-1, 418 Engagement with Stakeholders Production
(2) Investor Communication Channels 2-29, 201 Engagement with Stakeholders (1) Energy Management 302-1, 302-3, 302-4 Energy Utilization
II. Empowered by Innovation, Forging Out- (2) Water Management 303-4, 303-5 Water Resources Utilization
standing Products
(3) Pollutant Emission Management 303-2, 305-6, 305-7, 306-2,
Jointly Writing a New Chapter in the Indus- (4) Biodiversity Conservation 304-3 Ecosystem and Biodiversity Conservation
try
(1) Research and Development Management 201-1 Innovation Driver Development
(2) Digital and Intelligent Transformation Innovation-driven, Product and Service Security (1) Green Factory Practice
(3) Intellectual Property Protection 417-1 Innovation Driver (2) Innovation in New Energy Products 201-2, 302-5 Innovation Driver
(4) Technology Ethics 406 Technology Ethics (3) Clean Energy Application 302-1 Energy Utilization
ing the Development of the Green Chain Social Harmony
(1) Supplier Life Cycle Management 308-1, 414-2 Supply Chain Security 1. Employee Empowerment and Value
Realization
(2) Supply Chain Risk Prevention and Control 2-6, 308-1, 414-2 Supply Chain Security
(1) Employment 401-1, 405-1, 405-2 Employees
(3) Supply Chain Sustainability Management 308-1, 308-2, 414-2, 414-1, 408
(2) Employee Development 404-1, 404-2 Employees
Across the Entire Supply Chain, Strengthen- 2. Warm Care, Greater Happiness
ing the Foundation of Quality
(1) Employee Benefits and Care 401-2 Employees
(1) Product Quality and Safety System 416-1, 416-2 Product and Service Security and Quality
(2) Staff Activities 401-3 Employees
(2) Customer Service and Satisfaction 417-1, 417-2, 418-1 Product and Service Security and Quality
III. Green Intelligent Manufacturing, Leading
the Low-Carbon Transformation (1) Occupational Health Management 403-1, 403-3, 403-6, 403-7, Employees
agement 403-5, 403-2 Employees
Green Foundation
(1) Environmental Compliance Management 2-27, 305-7, 303-2 Environmental Compliance Management 4. United in Purpose, Spreading LON-
CIN’s Warmth 413-1 Rural Revitalization, Social Contributions
(2) Environmental Emergency Management 306-3, 403-2, 403-5 Environmental Compliance Management
Appendix 3: Feedback Form
Dear Reader:
Thank you for reading the 2025 Environmental, Social and Governance (ESG) Report of Loncin Motor Co., Ltd. To provide you and other stakeholders with more professional and valu-
able corporate ESG information, we kindly invite you to complete the relevant questions in the feedback form. Your input will help the Company further improve its ESG performance
in the future.
Loncin Motor Co., Ltd.
Environmental, Social, and Governance (ESG) Report 2025
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