Contents
About This Report 03
Message from the Chairman 05
About the Company 07
ESG Management 11
Material Topics Analysis 13
Stakeholder Communication 16
Theme： 17
Growing Together, Thriving Together — Huayi People
Co-create a New Development Ecosystem
Future Outlook 95
Chapter I Chapter II Chapter III
Appendix 97
Governance Environment Society
Building a Solid Foundation for Advancing Green Development Fostering Huayi's Core and
Huayi and Co-creating Value for Shared Prosperity Empowering Co-growth
Compliance Management with 25 Green Manufacturing and Eco- 43 Innovation-driven Development and 67
Integrity and Ethical Conduct friendly Factories Intelligent Manufacturing Upgrading
Risk Prevention and Governance 33 Ecological Protection and 49 Quality Excellence and Value Chain 76
Enhancement Sustainable Development Synergy
Transparent Communication 36 Response to Climate Change 60 Employee Development and Protection of 85
and Value Sharing and Lean Resource Management Rights and Interests
Compassion and Responsibility, 93
Empowering Rural Communities
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
About This Report
Report Overview Data Reporting Statement
This Report is the annual ESG report of Changhong Huayi Compressor Co., Ltd., which is intended to disclose our ESG-related Unless otherwise specified, the data disclosed in this Report are consolidated data within the organizational scope of this Report.
strategic guidelines, management measures, and performance in response to stakeholders' expectations regarding our sustainable All data are derived from our official documents, statistical reports, financial reports, third-party questionnaire surveys, and
development and information disclosure, to help stakeholders understand the opportunities and challenges our Company faces information collected and compiled by various functional departments.
in the course of sustainable development as well as the efforts it has made to achieve its sustainability goals, and to create value
together with stakeholders. Changhong Huayi undertakes that this Report contains no false record or misleading statement, and is responsible for the
truthfulness, accuracy, and completeness of its contents. At the same time, we will continue to improve the statistical methodology
Reporting Scope
for data indicators in order to provide more comprehensive ESG information.
This is an annual report covering the period from January 1, 2025 to December 31, 2025. To enhance the completeness of this Release Cycle
Report, and some data may fall outside this period.
This Report is published on an annual basis and was released in April 2026.
The organizational scope of this Report covers Changhong Huayi Compressor Co., Ltd. and all of its controlled subsidiaries.
Basis of Preparation
References
This Report has been prepared in accordance with the relevant provisions of the Shenzhen Stock Exchange Self-regulatory
For ease of expression, unless otherwise specified, terms such as "Changhong Huayi", the "Company", or "we" in this Report refer Guidelines for Listed Companies No. 17—Sustainability Report (Trial) (the "Sustainability Report Guidelines"), and with reference
to the reporting entity of this Report. to the China Enterprise Sustainability Disclosure Guidelines (CASS-ESG 6.0) , the GRI Sustainability Reporting Standards (GRI
Standards 2021) issued by the Global Reporting Initiative (GRI), and IFRS Sustainability Disclosure Standards S1 and S2 issued by
The definitions of the Company, its subsidiaries, and other abbreviations are set out in the table below: the International Sustainability Standards Board (ISSB), among other guidelines and standards.
Definition Term Definition
How to Obtain the Report
Changhong Huayi, the Company, the
Changhong Huayi Compressor Co., Ltd. (formerly Huayi Compressor Co., Ltd.)
Company, we
This Report is released in electronic form. You may download the electronic version of this Report and obtain more information
about our Company from the official website of the Shenzhen Stock Exchange (http://www.szse.cn), CNINFO (www.cninfo.com.cn),
Sichuan Changhong or controlling
Sichuan Changhong Electric Co., Ltd. and the official website of Changhong Huayi (https://www.hua-yi.cn/)
shareholder
Jiaxipera Jiaxipera Compressor Co., Ltd.
Huayi Jingzhou Huayi Compressor (Jingzhou) Co., Ltd.
Contact Information
Huayi Barcelona Huayi Compressor Barcelona S.L. In order to continuously improve our sustainable development and ESG information disclosure practices, we sincerely welcome
your comments and suggestions. Please contact us through the following channels:
Huazhu Machinery Jingdezhen Huazhu Machinery Co., Ltd.
Zhejiang Weile New Energy Compressor Co., Ltd. (formerly Shanghai Weile Automotive Air Mailing Address: No. 1 Changhong Road, High-tech Zone, Jingdezhen City, Jiangxi Province
Zhejiang Weile
Conditioner Co., Ltd.) Department: Securities Office
Tel.: 0798-8470237
Jiaxipera Mexico JIAXIPERA M?XICO, S. DE R.L. DE C.V.
Postal Code: 333000
Email: hyzq@hua-yi.cn
Jiaxipera Technology Zhejiang Jiaxipera Technology Service Co., Ltd.
Jiaxipera Hangzhou Jiaxipera (Hangzhou) Technology R&D Co., Ltd.
SZSE Shenzhen Stock Exchange
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Message from the Chairman
In 2025, against the backdrop of complex geopolitical disruptions and a continued increase in trade barriers, the global Fulfilling Responsibilities and Building a Symbiotic and Win-win Ecosystem
manufacturing sector and refrigeration industry as a whole came under downward pressure, and the refrigeration compressor
industry faced multiple challenges, including fluctuating market demand, iteration of core technologies, and the transition We have always upheld the corporate tenet of "employee satisfaction, customer satisfaction, and shareholder satisfaction",
toward green and low-carbon development. Changhong Huayi has always upheld its corporate mission of "protecting the living adhered to the core value of "customer-centricity", integrated responsibility into our Company's development, united all parties
environment of the Earth and improving the quality of human life". Our Company has remained deeply focused on its core through mutual benefit, coordinated value creation for employees, customers, shareholders, and society, and achieved shared
business of hermetic reciprocating compressors while vigorously developing its second growth curve in new energy vehicle air- direction, joint development, and shared benefits between the Company and its stakeholders. Our Company has made dedicated
conditioning compressors. Changhong Huayi has deeply integrated ESG principles into its corporate strategy and the entire efforts to build harmonious and mutually beneficial labor relations, improve employees' growth and development system, and
course of operations and management, fulfilled its original mission through responsible conduct, and delivered solid and resilient strictly uphold the bottom line of workplace safety. Taking the standards of a "National Model Enterprise for Harmonious Labor
operating results in return for the trust and support of all shareholders. Relations" and a "National Demonstration Enterprise for Safety Culture" as benchmarks, we safeguard employee growth and well-
being and ensure that development outcomes benefit all employees. We have consistently remained customer-centric. Relying
Looking back on 2025, Changhong Huayi withstood downward industry pressure and delivered strong operating results. Sales on the globally leading production and sales volume of variable-frequency compressors and the premium global influence of
of our hermetic reciprocating compressor business reached 87.83 million units, representing a year-on-year increase of 4.3%, the Cubigel brand in the light commercial sector, we provide stable and reliable products and services to more than 680 partners
outperforming the broader market. Our Company has ranked at number 1 globally in both production and sales for 13 consecutive worldwide. At the same time, we actively reward shareholders by continuously increasing cash dividends in recent years. During
years, with a market share of over 30%. Leveraging an industrial ecosystem featuring "supply chain collaboration and industry- the 14th Five-Year Plan period, cash dividends accounted for an average of 53% of the net profit attributable to shareholders of
academia-research collaboration", Changhong Huayi has continued to lead the global market. Remarkable results were achieved the parent company in the consolidated financial statements for the year, thereby effectively safeguarding shareholders' long-
in intelligent transformation and digital transformation. Automation and intelligent upgrades across all production bases term returns through steady performance and genuine commitment. We have also proactively extended our responsibility chain,
accelerated comprehensively, with important breakthroughs made in automation coverage, per capita efficiency, and production worked with supply chain partners to build a green ecosystem, and given back to society and conveyed warmth through concrete
capacity. Our Company also received multiple honors, including "Advanced Intelligent Factory of Jiangxi Province", "Green actions.
Manufacturing Factory of Hubei Province", and "Zhejiang Province Benchmark Enterprise for AI Applications", further reinforcing
the foundation for high-quality development.
Strengthening Standardized Governance and Consolidating the Foundation for Sustainable and Steady Growth
Upholding Green Development and Advancing the Low-carbon Transformation of Industry We adhere to the leadership of Party building and deeply integrate the Party's leadership into every aspect of corporate governance,
giving full play to its core role in setting direction, managing the overall situation, and ensuring implementation. We have established
With a spirit of craftsmanship, we have remained dedicated to green and intelligent manufacturing and embedded low-carbon a modern corporate governance mechanism with clearly defined powers and responsibilities, coordinated operation, and effective
principles throughout the entire life cycle of R&D, production, and the supply chain. Through green practices implemented across checks and balances among the General Meeting of Shareholders, the Board of Directors, and the management. We strictly uphold
the full value chain, we successfully obtained the industry's first Zero-carbon Factory certification, setting a new benchmark for the bottom line of integrity and compliance, deepen the internal control system and audit oversight, and fully embed ESG principles
green manufacturing. By optimizing the energy mix through distributed photovoltaic power generation, achieving precise energy throughout the entire process of business operations and management. We are keenly aware that standardized governance is the
consumption control through digitalized energy management, applying green processes such as phosphorus-free electrophoretic solid foundation for our long-term development. Only by upholding integrity, strengthening risk management and control, and
coating and steam waste heat recovery to reduce environmental impact, and continuously developing high-energy-efficiency and remaining compliant can we provide a strong safeguard for sustainable development.
environmentally friendly compressor products, we have helped downstream customers and the entire industrial chain reduce
carbon emissions and energy consumption at the source. We firmly believe that every energy-efficiency upgrade of a compressor The achievements we have made would not have been possible without the joint efforts of all Huayi employees, nor without the trust
and every green transformation of a factory reflects our care for the planet and constitutes a concrete step toward the Dual Carbon and support of all stakeholders. On behalf of the Board of Directors, I would like to extend my sincere thanks and highest respect to all
Goals (Carbon Peak and Carbon Neutrality). shareholders and friends who have cared for and supported the development of Changhong Huayi. Looking ahead, we will continue
to focus on its core business and move forward with determination. We will continue to break through core technological barriers in
the compressor industry, advance product iteration and upgrading, empower better lives through green technology, and contribute
Huayi's strength to the transformation and upgrading of China's manufacturing industry and to global green development.
Chairman of Changhong Huayi Compressor Co., Ltd.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
About the Company Corporate Spirit
Hard work, pioneering spirit, perseverance, and
the pursuit of excellence
Changhong Huayi Compressor
Co., Ltd. was established in 1990
Corporate
and listed on the Shenzhen
Culture
Stock Exchange in 1996.
Stock abbreviation: Changhong
Huayi Corporate Mission Core Values
Stock code: 000404
Protect the Earth's ecological Customer-centric
environment and improve the
quality of human life
Organizational Structure
Principal Businesses
Changhong Huayi Compressor Co., Ltd.
Strategic Committee
During the Reporting Period, our Company's principal businesses included hermetic reciprocating compressors and new
Audit Committee
energy vehicle air-conditioning compressors. The hermetic reciprocating compressor business covers the R&D, production,
and sales of household and commercial compressors. Household compressors are mainly used in domestic refrigeration
Party Committee Board of Directors appliances such as refrigerators and freezers, while commercial compressors are mainly used in supermarket freezer display
Nomination Committee
cabinets, refrigeration cabinets, and vending machines in airports, schools, office buildings, and business streets. New
energy vehicle air-conditioning compressors are core components of thermal management systems for new energy vehicles.
Remuneration & Evaluation Committee
Commission
Discipline Inspection
Labor Union
Youth League Committee
Our Company currently operates multiple compressor R&D, manufacturing, and sales bases in Jingdezhen, Jiaxing, Jingzhou,
Management Team Barcelona, and Mexico. Our Company owns four brands—"HUAYI", "JIAXIPERA", "CUBIGEL", and "VELLE"—forming a complementary
brand matrix. Among them, both "HUAYI" and "JIAXIPERA" have been awarded the titles of "China Famous Brand" and "China
Well-known Trademark". Our Company's products are sold in more than 60 countries and regions, and it has established strategic
cooperation with well-known domestic and international brands. Our market share ranks first at number one globally in the industry.
Many renowned enterprises domestic and abroad, including Haier, Hisense, Meiling, Whirlpool, Bosch-Siemens, and Electrolux, have
Party Committee Office
Corporate Office
Securities Office
Audit Department
Operations & HR Department
Planning & Finance Department
Strategic Planning Department
Production Management Department
Technical Development Department
Marketing Department
Lean Engineering Department
Quality Management Department
Safety & Environmental Protection Department
Warehousing & Logistics Department
Material Procurement Department
Logistics & Security Department
Stamping Business Unit
become core customers of our Company.We are supplying comprehensive new energy vehicle air-conditioning compressor product ,
covering the full range of new energy passenger vehicles (48–800V) as well as air-conditioning, refrigeration, and heating applications
for new energy commercial vehicles. With high-quality products and services, we have gained strong customer recognition and
established close strategic partnerships with a number of leading automotive manufacturers.
Discipline Inspection Department
Labor Union Office
Youth League Committee Office
Changhong Huayi Commercial Hermetic Reciprocating Compressors Zhejiang Weile New Energy Vehicle Air-conditioning Compressors
Jiaxipera Household Hermetic Reciprocating Compressors Jiaxipera Hangzhou Technology R&D
Jiaxipera
Huayi Jingzhou Small and Micro Hermetic Reciprocating Compressors Industrial Robot Application and Equipment Integration
Technology
Overseas Commercial Operations Center, America Hermetic Reciprocating Compressor
Huayi Barcelona Jiaxipera Mexico Manufacturing Base
External Window and Service Platform
Huayi Compressor (Jingzhou) Huayi Compressor (Barcelona) Jiaxipera Compressor Co., Jingdezhen Huazhu Machinery
Co., Ltd. Co., Ltd. Ltd. Co., Ltd. Huazhu Machinery
Key Component Base for Hermetic Reciprocating
Compressors
Zhejiang Jiaxipera Technology Zhejiang Velle New Energy Jiaxipera (Hangzhou) Technology Jiaxipera (Mexico) Co.,
Service Co., Ltd. Compressor Co., Ltd. R&D Co., Ltd. Ltd.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Development History
Establishment of Huayi Commissioning of China's first Company was established through Recognized as a key high-tech Establishment of Huayi Acquisition of Jiaxipera
Compressor Factory CFC-free compressor production fundraising and listing listed on enterprise under the National Compressor (Jingzhou) Co., Ltd. Compressor Co., Ltd.
line with an annual capacity of 1 the Shenzhen Stock Exchange Torch Program
million units
Sales volume of Changhong Huayi Company renamed to Changhong Huayi Acquisition of Shanghai Weile Acquisition of Spain's Cubigel Completion and Commissioning Sichuan Changhong became the
exceeded 60 million units Compressor Co., Ltd. Automotive Air Conditioner Co., Company and establishment of of Our "New 600 Project" controlling shareholder of Huayi
Awarded the title of "National Ltd. (renamed Zhejiang Weile New Huayi Compressor Barcelona S.L. Compressor Co.,Ltd
Manufacturing Single Champion Energy Compressor Co., Ltd.)
Demonstration Enterprise"
Completion and mass production Completion and commissioning of Passed the re-evaluation of the "National Sales volume of new energy 30th anniversary of our Company's
of Jingdezhen Huazhu Machinery Jiaxipera Mexico Manufacturing Single Champion vehicle air-conditioning listing
Co., Ltd. Sales volume of Changhong Huayi Demonstration Enterprise" by the Ministry of compressors exceeded 1 million
exceeded 70 million units Industry and Information Technology units
Sales volume of Changhong Huayi exceeded
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Department of Industry and Department of Industry and Office of Zhejiang Provincial Department Organizing Committee of "Hidden Emerging China Association for Public China Association for Public
Information Technology Information Technology of Economy and Information Technology Champions in of China Manufacturing" Companies Companies
Advanced Intelligent Factory Title Jiangxi Social Responsibility Selected as one of the first typical cases The 7th "Hidden Emerging Champion in of China 2025 Outstanding Practice Case in 2025 Outstanding Practice Case
(Leading) Enterprise of AI Empowering Manufacturing in Manufacturing " Sustainable Development of Listed Award for the Board of Directors of
Zhejiang Province Companies Listed Companies
City of Sabadell, Spain China National Light Industry Council China Household Electrical Appliances China Association for Public China Association for Public China Energy Conservation
and Consumer Electronics Expo Companies Companies Association
frequency refrigeration compressor technology Expo Core Technology Award for the Board of Directors Office of Listed Briefing 2024
selected for the Catalogue of Advanced Energy- Companies.
saving and Carbon-reduction Technologies in
Key Areas of Light Industry (2025 Edition)
China Association for Public Electrical Appliances Magazine
Environmental Roundtable Summit Delta G60 Science and Innovation Corridor
Yangtze River Delta G60 Science and Innovation Dividend Ranking Golden Nail Award
Corridor Quality and Standards Benchmark
Continuous Environmental Improvement
Enterprise
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
ESG Training
ESG Management
Our Company conducts systematic ESG training for senior management, heads of
ESG Governance Framework ESG-related functional departments, and personnel in key ESG roles. During the
Reporting Period, core members participated in the 17th "Sharing Responsibility"
public course organized by the Responsibility Cloud Research Institute.
Our Company consistently adheres to the concept of sustainable development, places great importance on enhancing its ESG
governance capabilities and performance, and actively promotes the deep integration of the ESG Governance Framework with its
corporate governance system. We have established a top-down ESG management mechanism and formed an ESG governance
structure with clear powers and responsibilities, under which the Board of Directors provides overall decision-making, the
Strategy Committee offers supervision and guidance, and various functional departments implement responsibilities accordingly.
This structure facilitates the comprehensive integration of ESG into corporate governance, Risk Management and Control, and
operational management, thereby safeguarding our sustainable and high-quality development.
Institution Expertise/
Scope of Authority Responsibilities/Objectives
Name Capabilities
·F
ormulate and review the Company's ESG Board Members possess diverse
Senior member and other personnel of the Company participated in ESG training.
strategy, development goals, and core professional backgrounds in
topics; corporate management, strategic
The Board of Directors is the In addition, our Company have invited external experts to conduct six specialized training sessions, with over 100 participants in
·R
eview annual ESG reports, ESG Information planning, technology R&D, finance,
highest governing body for
Disclosure, and major ESG matters; and risk management, enabling total. The training covered multiple dimensions, including the latest ESG development trends, ESG governance enhancement,
Board of Directors
ESG matters, providing overall
·O
versee the implementation of ESG strategies, them to provide professional safety and environmental protection system development, risk identification and prevention, employee and customer rights
leadership for ESG affairs and
Risk Management and Control, and performance guidance and decision-making protection, and Supply Chain Management.
formulating ESG strategies and
improvement; support for ESG governance,
objectives.
·E
nsure effective alignment between ESG sustainable development, and
governance and corporate governance and stakeholder value creation at the
risk management systems. strategic level.
Under the authorization of the In May 2025, our Company convened a review
·R esearch and propose ESG strategic planning,
Board of Directors, the Strategy meeting on the 2024 ESG work summary and
management systems, key tasks, and major
Committee coordinates ESG- Members possess professional
topics; improvement recommendations, systematically
related work, conducts research, expertise and practical experience
Strategy
·S upervise and review the progress and achieve- summarizing key improvement points and
review, and supervision of ESG in corporate governance, social
ment of ESG objectives;
Committee of the
strategies, plans, major matters, responsibility, risk management, best practices in ESG work and promoting the
· Identify, assess, and supervise major ESG risks
Board of Directors
and management effectiveness, and Compliance Management, continuous optimization of ESG management.
and opportunities, and promote the imple-
and provides professional opinions with strong capabilities in strategic
mentation of coping strategies;
and recommendations to the judgment , super vision, and
·Review ESG reports and related disclosure
Board of Directors to enhance the professional decision support.
information and submit to the Board of External experts were invited to conduct training on
scientific and forward-looking
Directors for consideration. ESG work review and improvement recommendations.
nature of ESG decision-making
Sustainable Development Strategy
·C
onduct Material Topics assessment and
As the execution body for ESG work, Changhong Huayi remains committed to a path of high-quality and sustainable development, actively responding to the national
stakeholder engagement and communication;
it is responsible for implementing the The team continuously participates Dual Carbon Goals (Carbon Peak and Carbon Neutrality), and deeply implementing the concept of green and low-carbon
·F
ormulate ESG implementation plans, action
decisions of the Board of Directors in ESG policy, standards, and practical development. As a leading enterprise in the green, environmentally friendly, and energy-efficient hermetic reciprocating compressor
plans, and management systems and organize
and the Strategy Committee, training organized by regulatory
Management
their execution; industry, our Company advances green development across the entire value chain from product R&D to manufacturing. It adheres to
establishing and operating a closed- authorities, stock exchanges, and
·B
e responsible for ESG data collection, statistics, environmental protection as a fundamental principle and strives for minimal ecological impact; focuses on energy-saving innovation
Function
loop ESG management system, and professional third-party institutions,
verification, and routine management;
coordinating daily management, thereby enhancing ESG expertise and to develop high-efficiency, low-carbon compressor products; emphasizes resource efficiency by promoting product miniaturization
·C
oordinate the preparation of ESG reports,
risk prevention and control, ensuring accurate understanding of and lightweight design; and implements energy conservation and emission reduction throughout the entire production process.
information consolidation, and compliant
and information management regulatory requirements, disclosure
disclosure;
across environmental, social, and rules, and industry best practices.
·R
egularly report ESG progress, issues, and Our Company actively fulfills our social responsibilities by safeguarding the legitimate rights and interests of employees and
governance domains.
improvement outcomes. customers, participating in community development and public welfare initiatives, and promoting social harmony and prosperity. We
have established a standardized and well-ordered governance system, improved corporate governance structure with clearly defined
rights and responsibilities and effective checks and balances, and ensured efficient and compliant corporate governance operations.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
ESG Honors Material Topics Database
With reference to the Shenzhen Stock Exchange Self-regulatory Guidelines for Listed Companies No. 17—Sustainability Report
(Trial) , and considering the macro policy environment in the regions where the company operates, as well as the characteristics
and development stage of the industry in which the company operates, we analyzed sustainability-related impacts, risks, and
opportunities and established the following sustainability topic database:
Products Privacy Protection Framework
Investors' Rights
Changhong Huayi was selected as a 2025 Outstanding Practice Changhong Huayi was awarded with 2024 Jiangxi
Case in Sustainable Development of Listed Companies. Social Responsibility (Leading) Enterprise. 4.Ecosystems and Biodiversity 13.Social Contribution
Development Audit System
Management Communication Development
Material Topics Analysis 6.Energy Utilization 15.Technology Ethics 24.Due Diligence 33.Digital Transformation
Process for Identifying Material Topics 7.Water Resource 16.Supply Chain Security 25.Stakeholder Communication
Utilization
Medium-sized Enterprises (SMEs)
Step 1 18.Product and Service Safety
By studying and analyzing the requirements and recommendations of major domestic 9.Raw Materials 27.Anti-unfair Competition
Background Research and and Quality
and international sustainability disclosure standards, and in combination with our
Business Analysis to Establish
Company's business composition, 33 potential material topics were identified to form
a Sustainability Topic
a sustainability topic database (see below).
Database
Results of Double Materiality Analysis
· Identification of Impact Materiality
Internal experts and stakeholders jointly assessed topics from the perspectives of Based on the establishment of the Material Topics Database, our Company conducted questionnaire surveys and consulted
impact and likelihood, with a total of 255 valid questionnaires collected. internal and external ESG experts to identify both impact materiality and financial materiality of each topic. Ultimately, we have
Step 2 identified: 6 topics with both financial materiality and impact materiality; 15 topics with impact materiality only; 12 topics with
Topic Identification and relatively low financial and impact materiality.
Assessment · Assessment of Financial Materiality
Internal and external experts assessed the financial materiality of each topic from
the dimensions of likelihood and magnitude of risks and opportunities, which were
Impact Materiality Financial Materiality
reviewed and confirmed by multiple departments.
refers to whether the company's performance refers to whether a given topic is expected to
Step 3 Based on the assessment data in Step 2, the 2025 Material Topics Matrix was developed on a given topic may have actual or potential have significant impacts on the company's
Topic Materiality Matrix to determine the materiality of topics for the year. significant impacts on the economy, society, business model, operations, development
and the environment. Our Company primarily strategy, financial position, operating results,
evaluates this based on factors such as the cash flows, financing methods, and costs in the
scale, scope, irremediability, and likelihood of short, medium, and long term. We primarily
Step 4 the impact. evaluate this through the likelihood and
Guided by the analysis results, our Company carried out targeted disclosures and
Topic Disclosure and Practice magnitude of financial impacts.
practices.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Double Materiality Matrix
Stakeholder Communication
Changhong Huayi Double Materiality Matrix of Material Topics We have established regular communication mechanisms with key stakeholders, including government authorities, shareholders,
customers, and partners. Through questionnaires, seminars, and other forms of engagement, we actively listen to their
expectations and demands regarding Environmental, Social and Governance (ESG) matters, encourage their participation in
Very High Materiality
Stakeholders Key Concerns Response Measures
High Impact Materiality
and regulations implement relevant national policies
Government Safety • Promote energy conservation and emission reduction and develop green
and Regulatory • Climate Change products
Authorities Response • Leverage corporate resource advantages and actively fulfill social
Moderate Materiality
Information Disclosure
• Establish effective communication mechanisms, optimize business layout,
• Continuous Value
Shareholders and Creation
and enhance core profitability
Investors
• Continuously advance the integrated system of Compliance Management,
Management
promptly prevent and mitigate various risks
Financial Materiality
Moderate Materiality Very High Materiality
• Responsible Marketing • Improve product quality and provide high-quality services
• Customer Privacy • Establish Customer Privacy Protection mechanisms and standardize data
Topic Distribution
Protection usage
Customers • High-quality Products • Conduct customer satisfaction and demand surveys, and continuously
and Services improve customer service level
• Standardize procurement processes, adhere to the principles of fairness,
Topic Materiality Topic • Fair Procurement impartiality, and transparency, and eliminate non-transparent practices
• Joint Development • Conduct supplier evaluation and review, build a win-win cooperation
Suppliers and • Mutual Benefit and platform, and provide technical support and resource empowerment
Partners
Topics with Both Financial • Taxation • Protection of Investors' Rights Win-win Results • Promote the healthy development of the industry, establish long-term and
and Impact Materiality
• Anti-bribery and Anti-corruption • Customer Service stable cooperative relationships, and share development achievements
• Product and Service Safety and Quality • Innovation-driven Development
• Safeguard employees' fundamental rights, execute labor contracts in
• Employee Rights and accordance with the law, and make full contributions to social insurance and
Protection housing provident funds
• Digital Transformation • Diversity and Equality • Respect workplace diversity, uphold equal pay for equal work, and eliminate
• Stakeholder Communication
• Supply Chain Security
Employees
• Green Technologies and Products • Occupational Health discrimination in the workplace
• Internal Control and Audit System
Topics with Impact • Raw Materials and Safety (OHS) • Ensure employees' occupational safety and health, conduct safety training,
• Anti-unfair Competition • Talent Training and and provide protective equipment
Materiality Only
• ESG Governance Framework
• Data Security and Customer Privacy Protection Development • Establish clear and accessible career development pathways
• Waste Treatment
• Environmental Compliance Management • Employee Care • Improve employee welfare and care systems and organize cultural and
• Promotion of Industry Development
• Pollutant Emissions recreational activities
• Corporate Culture Development
• Employees
• Support public welfare initiatives, including charitable donations and
assistance to disadvantaged groups
• Giving Back to Society
• Water Resource Utilization • Practice green developmental ideal by advancing Green Manufacturing,
• Technology Ethics • Climate Change energy conservation and carbon reduction, energy optimization, and
• Energy Utilization
Topics with Relatively
Response
• Circular Economy
Communities and
technological innovation
• Due Diligence • Three Wastes
Low Financial and Impact
• Climate Change Response • Strengthen the management of wastewater, waste gas, and solid waste to
Environment
• Equal - Manner among Small and Medium- Management
• Social Contribution
Materiality sized Enterprises (SMEs) ensure compliant discharge and promote recycling and reuse
• Ecosystems and Biodiversity • Green Production
• Responsible Marketing and Communication • Optimize production processes and reduce environmental impacts during
• Rural Revitalization • Energy-saving production
• Green Operations Innovation
• Develop energy-efficient and innovative products, promote energy-saving
technologies, and reduce energy consumption
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Warm Care Enhancing Support Systems and Delivering Huayi's Care
Theme
Changhong Huayi continues to improve its employee care and support system, striving to create a secure, stable, and people-
oriented working and living environment for employees.
Growing Together, Thriving Together — Huayi
People Co-create a New Development Ecosystem
Key Performance
Empowerment Building a Career Development System to
through Diversity Enhance Individual Value We have formulated the Employee Care and Condolence Management
System . The Party organization, administrative management, labor union, During the year, 481 employees
and youth league consistently carry out employee care initiatives with received support and hardship
dedication. The leadership team conducts regular visits and support activities assistance in cases such as marriage,
Talent is the fundamental driving force for the steady and sustainable development of an enterprise. CHANGHONG HUAYI for Party members and employees each year. During the year, 481 employees childbirth, illness, bereavement, and
consistently elevates employee growth and career development to a strategic priority, regarding talent cultivation as a critical received support and hardship assistance in cases such as marriage, retirement, distributed in hardship
pillar for sustainable development and a core source of competitive advantage. Our Company has established a multi-level, childbirth, illness, bereavement, and retirement, with nearly RMB 1 million subsidies，with nearly
RMB 1
multi-dimensional, and multi-channel talent development system. It continuously strengthens skills enhancement, professional distributed in hardship subsidies, employee care funds, and other assistance.
empowerment, and talent pipeline development, while advancing the development of a learning organization. These efforts Scholarships and grants totaling RMB 49,000 were awarded to 36 employees' million
promote aligned and mutually reinforcing growth between employees and the company. They enable each employee to realize children admitted to universities. We also extended congratulations and best
career aspirations, co-create value with the enterprise, share development outcomes, and achieve deep integration and dual wishes to newly married employees in a timely manner.
advancement of individual and corporate value.
We have organized the "Five Ones" employee care initiative, including hosting
Our Company successfully organized the 2025 Employee Skill Grade Assessment Competition, for which 583 employees from various symposiums and group gatherings for retired employees and presenting
positions registered. The competition consisted of a written theoretical examination and a practical skills assessment. Following with total distribution
commemorative albums, flowers, and souvenirs. It also organized a three-
rigorous competition, a total of 191 skilled craftsmen at different skill grades were selected and awarded skill grade allowances reaching
day "wellness and learning retreat" for advanced collectives, outstanding
and honorary certificates. This competition promoted the spirit of craftsmanship featuring dedication to one's work, pragmatic
innovation, careful attention and the pursuit of excellence. It also further strengthened our skilled craftsman workforce, enhanced
employees' job-related skills and capabilities, fostered a strong culture of benchmarking, learning, catching up, mutual support and
individuals, female role models, young professionals, active union members,
corporate craftsmen, and awardees of advanced operational practices.
Concern and care were extended to over 7,600 employees working under
RMB 6 million
surpassing others, and laid a solid foundation for our high-quality development. high-temperature conditions. Supplementary mutual medical insurance
plans were purchased for more than 2,000 employees. Birthday cards were
Jiaxipera successfully established and commenced substantive operations of the "Jiaxipera Model Worker and Craftsman Academy". distributed to 7,600 employees, with a total value approaching RMB 1 million.
The Academy was approved as one of the first member institutions of the Jiaxing Model Worker and Craftsman Academy Alliance, The standard of holiday benefits has been increased year by year, with total
marking a critical step forward for our Company in the systematic and structured cultivation of highly skilled talent. distribution reaching RMB 6 million.
We have coordinated and resolved difficulties in life for more than 30 employees and their families such as school
enrollment and medical treatment . In collaboration with medical institutions, a family doctor service studio was
established, and medical expert teams were invited to provide health consultations and free medical services on-site.
Care for Retired Employees Support for Employees in Need
Establishment of the Model Worker and Craftsman Academy Employee Awarded the "Jingdezhen Labor Day Medal"
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Enhancing Participation Channels and
Our Company places great importance on employees' physical and mental well-being and actively promotes work-life balance.
Co-governance and
Stimulating Internal Momentum
By improving infrastructure and enriching cultural activities, it strives to build a people-oriented and vibrant corporate culture
environment. Shared Development
Changhong Huayi strictly complies with the Trade Union Law of the People's Republic of China and the Constitution of the Chinese
Key Performance Trade Unions , standardizes democratic management practices, establishes diversified employee communication platforms, and
ensures smooth democratic communication channels. We fully mobilize employee initiative, effectively safeguards employees'
rights to information, participation, expression, and sharing, consolidates collective wisdom, and promotes our sound and
Changhong Huayi has actively implemented employee care and corporate
sustainable development.
culture initiatives. It organized two sessions for seven model workers and In 2025, books were added to
frontline employees to participate in recuperation programs organized by the employee reading rooms.
Enhancing Democratic Channels and Harnessing Collective Wisdom for Development
the municipal federation of trade unions. It successfully hosted the 11th
Employee Sports Games, attracting more than 600 employees and their more than volumes
family members, with over 1,100 participations. In 2025, more than 100 new
books were added to the employee reading rooms.
Our labor union holds quarterly employee forums and has established a closed-loop management mechanism for employee
suggestions, with regular follow-up and implementation. In 2025, more than 100 employee suggestions were collected, with a
Throughout the year, our Company organized various cultural and recreational activities, including Lantern Festival
completion rate exceeding 90%, effectively responding to employee concerns. At the same time, our Company continuously
riddle guessing, a photography contest, women employees' health lectures, fun sports events, Dragon Boat Festival
carried out rationalization proposal and "golden idea" solicitation activities, encouraging all employees to participate in corporate
parent-child activities, and Mid-Autumn and National Day garden parties, with total participation exceeding 5,000
management. In 2025, more than 3,600 proposals were received, of which over 1,500 were assessed as implementable, generating
person-times, effectively fostering a healthy, harmonious, and positive corporate culture atmosphere.
direct economic benefits of nearly RMB 2 million and achieving collective participation in promoting development.
Dedicated funds were invested to transform previously idle space into an "Employee Activity Center" integrating In 2025
fitness, learning, and entertainment functions. The center is scientifically zoned, operates on scheduled opening hours
with dedicated management, and encourages employees to exercise and relieve stress during their leisure time.
employee suggestions were collected In 2025, more than proposals generating direct economic
Completion rate exceeding benefits of nearly
were receivedmore
RMB 2 million
Our Company strictly implements democratic management and information disclosure systems. Key matters such as important
personnel appointments and removals, major decisions, and evaluations and awards are promptly disclosed through the OA
system to ensure employees' right to information. Major decisions involving employee welfare are subject to deliberation and
approval by the Employee Representative Congress, and employee participation is incorporated into the evaluation process
for middle-level management appointments, fully safeguarding employees' rights to participation and expression. In addition,
employees and helping to build a comprehensive, multi-level democratic management system.
Improving Complaint and Feedback Mechanisms to Safeguard Communication Rights
Our Company has established the Employee Performance Management Measures and built a comprehensive employee complaint
and feedback mechanism to effectively protect employees' legitimate rights and communication rights. Under the complaint
mechanism, employees who have concerns regarding the performance evaluation process or results may communicate directly
with their department heads or submit complaints to the Operations and Human Resources Department. As the responsible body
for handling complaints, the Operations and Human Resources Department will conduct a comprehensive investigation within
the complainant, the responsible evaluator, and the relevant supervisors will be convened to make decisions in an open and
transparent manner. The results will be promptly communicated to both parties and implementation will be supervised to ensure
proper resolution of concerns.
Mid-Autumn Festival Garden Party Activities
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Safeguarding Women's Rights and Demonstrating
In terms of performance feedback and interviews, after the annual evaluation is completed, department heads promptly
Women's
the Power of Equality
communicate evaluation results to employees. For employees with unsatisfactory performance, performance interviews are
proactively conducted to analyze root causes, provide targeted improvement recommendations, and assist in formulating detailed Empowerment
improvement plans, thereby supporting employee performance enhancement and promoting mutual growth between employees
and the company.
At Changhong Huayi, female employees are not only contributors to corporate development but also carriers of a warm corporate
Deepening Incentive Mechanisms to Build a Community of Shared Development
culture. Our Company consistently integrates gender equality into its management framework. Through comprehensive institutional
safeguards and diverse empowerment initiatives, it enables every female employee to thrive and develop in the workplace.
We have has established a Women Workers' Committee to improve the organizational system for rights protection, effectively
safeguarding the legitimate rights and special interests of female employees, actively listening to their concerns, and coordinating
To promote high-quality and sustainable development and fully stimulate the initiative, proactiveness, and creativity of
solutions to practical issues. It strictly implements the Special Provisions on Labor Protection for Female Employees , legally
management teams and core personnel, our Company continues to improve its incentive and restraint mechanisms, aiming to
safeguarding women's rights during menstruation, pregnancy, maternity, and breastfeeding periods, standardizing leave policies
closely align the interests of shareholders, the company, and employees. Through the formulation and implementation of the
such as maternity leave and breastfeeding leave, and continuously creating a safe and healthy working environment. Multiple
communication channels, including the Employee Representative Congress, labor union forums, and suggestion boxes, are
senior management, and other core management, technical, and marketing personnel. Eligible participants may receive incentive
maintained to ensure that reasonable demands of female employees are promptly addressed and efficiently resolved.
funds upon meeting the grant conditions. Employees use after-tax incentive funds combined with a portion of their annual
base salary to increase their holdings of the company's shares through open market transactions, thereby transforming from
In terms of career development, Changhong Huayi provides equal and broad advancement pathways for female employees.
"passive participants" into members of a "community of shared development". This mechanism not only strengthens the equity-
Parallel career tracks in management and professional technical fields enable women with diverse strengths to find suitable
based linkage of shared risks and benefits between key employees and the company, but also enhances employees' sense of
development paths. Regular recognition programs such as "Outstanding Female Employee" and "Women Role Model" are
participation and belonging in the company's development.
conducted to highlight exemplary individuals and promote role models. In 2025, our Company recognized a number of
outstanding female employees, advanced collectives, and exemplary employee families on International Women's Day. Several
female employees and collectives received honors awarded by municipal women's federations and higher-level trade unions,
demonstrating the positive spirit and outstanding contributions of female employees. Through themed publicity initiatives such as
As of the end of 2025
"Women's Strength and Responsibility" and "Empowered Women in Action", our Company showcases female achievements and
promotes positive values.
Changhong Huayi attaches great importance to the physical and mental health and well-being of female employees. It organizes
A cumulative total of 496 participation instances had been recorded, with incentive recipients cumulatively increasing
annual health examinations, including gynecological check-ups, establishes health records, and provides "Female Employee Well-
their holdings by 10.10 million shares, totaling RMB 64.63 million. This has effectively consolidated core capabilities, being Insurance" for all female employees. Regular lectures on women's health, mental health, and workplace stress management are
conducted to enhance self-care awareness. Outstanding female employees are organized to participate in recuperation programs to
stabilized the talent pool, and reinforced the foundation for our long-term sustainable development.
relieve stress and strengthen cohesion. For pregnant employees, necessary work accommodations and labor protection are provided,
and timely care and support are extended after childbirth, ensuring comprehensive protection of their well-being.
Through diverse cultural activities and supportive initiatives, our Company fosters a strong atmosphere of respect and care for
Number of Number of Shares
women. Each year, a series of activities are organized for International Women's Day, including commendations, recreational
Allocated Amount Amount Invested in Share
Year Employees Purchased (10,000
(RMB 10,000) Purchases (RMB 10,000)
events, cultural performances, and holiday sympathy. Regular activities such as walking, fitness running, and dance programs
Covered shares) are also conducted to enrich employees' leisure lives and promote well-being. Care is also extended to employees' families.
On Children's Day, holiday sympathy is provided to employees' children, and the "Most Beautiful Employee Family" selection
harmonious and coordinated development between employees and the company.
In 2025, our Company formulated the Share Repurchase Plan , under which part of the company's shares will be repurchased
through centralized bidding transactions. The total repurchase amount will be no less than RMB 150 million (inclusive) and no
more than RMB 300 million (inclusive), and the repurchased shares will be used for the implementation of equity incentives.
The Company Office was awarded the title of Women's Day Activities
"Women's Civilized Post"
长虹华意压缩机股份有限公司 2025 Environmental, Social and Governance (ESG) Report
Chapter I
Governance
Building a Solid Foundation for
Huayi and Co-creating Value
Changhong Huayi continuously improves its corporate governance system to
achieve a more efficient and comprehensive governance and decision-making
process, enhance operational efficiency, and promote High-quality Development
through strengthening governance foundations, focusing on core businesses, and
optimizing strategic layout.
Improve the corporate governance Completed. No material governance
and Compliance Management system, deficiencies occurred during the
standardize corporate operations, ensure year, and no major violations of laws
no material governance deficiencies, and and regulations were identified.
prevent any major violations of laws and G o v e r n a n ce o p e rat i o n s w e re
regulations. standardized.
Focus on the core compressor business, Completed. In 2025, operating
promote the High-quality Development performance improved steadily, with
of the listed company, improve operating operating revenue reaching RMB
performance, and effectively safeguard 11.781 billion and net profit attributable
the interests of the company and all to shareholders of the listed company
shareholders. reaching RMB 495 million.
Compliance Management with Integrity and Ethical Conduct 25
Risk Prevention and Governance Enhancement 33
Transparent Communication and Value Sharing 36
Response to the United Nations Sustainable Development Goals (SDGs)
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Board of Directors
Compliance Management with
Integrity and Ethical Conduct The Board of Directors is accountable to the General Meeting of Shareholders and serves as the company's decision-making
body, responsible for implementing resolutions of the General Meeting of Shareholders and determining the company's business
plans and investment strategies. The Board of Directors has established four specialized committees: the Strategy Committee, the
Changhong Huayi adheres to compliant operations, improves its Internal Control system, promotes integrity education, Nomination Committee, the Audit Committee, and the Remuneration and Appraisal Committee. Independent directors account for
and upholds the principles of honesty and fairness, achieving standardized governance, orderly compliance, and more than half of the members of the Audit Committee, Nomination Committee, and Remuneration and Appraisal Committee, and
integrity-driven development. serve as conveners. Each specialized committee fully leverages its professional expertise to undertake the discussion, decision-
making, supervision, and evaluation of major matters, thereby supporting the Board of Directors in making scientific decisions and
improving decision-making efficiency and quality.
In 2025, the Board of Directors convened a total of 11 meetings. All meetings were held in strict compliance with relevant laws,
Corporate Governance regulations, and the Articles of Association , and all resolutions were lawful and valid.
Changhong Huayi strictly complies with the Company Law, the Securities Law , the Code of Corporate Governance for Listed
Companies, the Shenzhen Stock Exchange Listing Rules, the Shenzhen Stock Exchange Self-regulatory Guidelines for Listed Indicator Unit 2023 2024 2025
Companies No. 1—Standardized Operation of Main Board Listed Companies , and other relevant laws and regulations. We
continuously improve our corporate governance structure, strengthens our Internal Control system, enhances Information Number of Board Meetings Times 10 9 11
Disclosure, further standardizes operations, and improves governance standards.
Total Number of Resolutions Approved by the Board Items 58 63 59
Our Company has established, in accordance with the law, a corporate governance structure comprising the General Meeting of
Shareholders, the Board of Directors, specialized committees under the Board of Directors, and senior management. A coordinated
Attendance Rate of Directors % 100 100
and mutually balanced mechanism has been formed among the authority body, decision-making body, supervisory functions,
and management, with clearly defined powers and responsibilities and standardized operations. Internal systems have been
formulated covering rules of procedure for governance bodies, independent directors, Information Disclosure, Protection of Number of Audit Committee Meetings Times 7 7 6
Shareholders' Rights, related-party transactions, and Internal Control. Through the formulation of the Articles of Association and
the implementation of various internal systems, we have clarified the responsibilities, authorities, procedures, and obligations of Number of Strategy Committee Meetings Times 3 2 5
each level of organization in decision-making, execution, and supervision.
Number of Remuneration and Appraisal Committee Meetings Times 2 3 1
Number of Nomination Committee Meetings Times 3 2 1
General Meeting of Shareholders
The General Meeting of Shareholders is the company's highest authority and is responsible for reviewing and approving major
matters of the company. Our Company strictly regulates the convening, holding, and voting procedures of the General Meeting Responsibility Honors
of Shareholders in accordance with laws, regulations, the Articles of Association , and the Rules of Procedure for the General
Meeting of Shareholders. In terms of meeting format, our Company provides both on-site meetings and secure, cost-effective, and
convenient online voting methods, facilitating shareholders' participation in corporate governance.
At the same time, our Company implements separate vote counting for minority investors on all matters submitted to the General
Meeting of Shareholders and discloses voting results in a timely manner, thereby effectively protecting the interests of minority
investors and ensuring that all shareholders, especially minority shareholders, can fully exercise their rights.
Number of General Meetings of Shareholders Total Number of Resolutions Approved at General
Outstanding Practice Case Award for the Board Practice Case Award for the Board of Directors Office
Meetings of Shareholders of Directors of Listed Companies. of Listed Companies
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Board Diversity Reform of Supervisory Structure
Our Company attach importance to diversity in the composition of the Board of Directors. The Board consists of 9 members, On September 11, 2025, Our Company convened its first extraordinary General Meeting of Shareholders of 2025 and approved
including 3 independent directors and 1 employee representative director. Members of the Board possess extensive experience the Proposal on Revising the Articles of Association . In accordance with relevant provisions of the Company Law of the People's
in corporate management, strategic investment, professional technology, risk and compliance, and financial management. Republic of China and the Guidelines for the Articles of Association of Listed Companies, our Company no longer maintains a
Independent directors account for one-third of the Board members. Supervisory Board or supervisors. The functions of the Supervisory Board as stipulated in the Company Law are now performed
by the Audit Committee of the Board of Directors. Corresponding amendments were made to the Articles of Association and the
Rules of Procedure for Specialized Committees of the Board of Directors, thereby establishing a more streamlined and efficient
governance structure.
Indicator Unit 2025
Total Number of Directors Persons 9 Senior Management and Remuneration Management
Doctoral Persons 3
Team Composition
Directors by Education Level Master's Persons 4
Our Company has a total of six senior management members, including one General Manager, two Deputy General Managers, one
Bachelor's Persons 2 Secretary to the Board of Directors, one Chief Accountant, and one Chief Engineer. The senior management team is drawn from
frontline functions including production, technology, marketing, finance, and investment and M&A, with an average of 30 years of
Corporate Management Persons 3 industry experience. They possess extensive management expertise and a deep understanding of market and customer needs, as
well as the ability to anticipate industry cycles.
Strategic Investment Persons 2
Directors by Professional Background Finance Persons 1 Tenure System and Contract-based Management
Technical Expertise Persons 2 Our Company fully implements a tenure-based and contract-based management system. Performance indicators are established in
alignment with our high-quality development objectives, and a dynamic mechanism for management mobility is in place. Adhering to
Risk and Compliance Persons 1 performance-oriented and market-oriented principles, our Company clarifies responsibilities, rights, and obligations, strictly manages
tenure and performance evaluation, and implements market-oriented remuneration distribution, performance evaluation, and exit
Directors by Age Group 40-50 Persons 1
ESG Performance Evaluation System
Above 50 Persons 7
Our Company has established an ESG Performance Evaluation system.
During the reporting period
Annual performance responsibility agreements are signed with
management members and affiliated enterprises, covering key areas D u r i n g t h e Re p o r t i n g Pe r i o d , t h e tota l
Independent Directors such as production safety, environmental protection, and lawful and remuneration actually received by all directors
compliant operations. Performance evaluation results are directly linked and senior management amounted to RMB
to remuneration, thereby strengthening accountability and promoting
Our Company have established a sound system for independent directors and convenes dedicated meetings of independent
the achievement of sustainable development objectives.
directors to review related-party transactions, cash dividends, and major matters, and to issue independent opinions. This million
mechanism fully plays a supervisory and balancing role, effectively prevents and mitigates operational risks, and safeguards the
interests of the company and all shareholders.
Capacity Building for Duty Performance
Indicator Unit 2023 2024 2025 Our Company organizes directors and senior management to participate
in various training programs conducted by the Jiangxi Securities
Proportion of Independent Directors % 33 33
Proportion of Independent Directors with Tenure
Exceeding 6 Years
% 0 0 0
training on new capital market regulations such as the Administrative
Measures for Major Asset Restructuring of Listed Companies , the
Provisions on Suspension and Exemption of Information Disclosure by
in 11 external regulatory training sessions.
Listed Companies , and training on financial fraud prevention and market
Proportion of Independent Directors Serving in More value management . These efforts enhance sensitivity to regulatory
% 0 0
than Three Listed Companies requirements and improve governance capabilities.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Continuous Improvement of Governance Mechanisms Business Ethics
During the Reporting Period, Our Company optimized its governance structure in response to new regulatory requirements
We uphold the principle of integrity as its foundation and ethical conduct as its core. Whether in cooperation with suppliers
and operational needs, successfully completing amendments to the Articles of Association and the reform of the supervisory
or in providing products and services to customers, we strictly adhere to ethical standards, participate in market competition
structure. It standardized the resignation and appointment processes for senior management, revised and improved more than
with fairness and impartiality, firmly reject improper practices, and are committed to fostering a healthy and orderly business
environment. Guided by strong business ethics, our Company continues to build an outstanding brand and a long-standing
Board of Directors , the Independent Director System, the Detailed Rules for the Work of the General Manager, and the Internal
reputation. During the Reporting Period, Changhong Huayi did not experience any material incidents involving violations of laws,
Audit System , and continuously enhanced its governance framework. New systems such as the Management System for Director
regulations, or business ethics.
Resignation and the Management System for Suspension and Exemption of Information Disclosure were established to further
standardize the management of key personnel and Information Disclosure procedures. More than 100 internal control systems
were newly formulated or revised, including the Internal Authorization Manual, the Seal Management System, the Management
System for Incompatible Positions and Segregation of Duties, and the Accountability System for Violations in Business Operations
and Investment , promoting the full integration of Compliance Management into all aspects of corporate governance and ensuring Anti-bribery and Anti-corruption
lawful and compliant business operations. At the same time, our Company revised the list of "Three Major and One Large" decision-
making matters to strengthen management and supervision of such matters and further clarify the boundaries of authority and
responsibility among governance bodies. Our Company continuously advances the development of integrity and compliance systems. To prevent business ethics risks, it has
established a layered and categorized system covering Anti-bribery and Anti-corruption, strengthened integrity training, reinforced
In addition, to further implement the strategic deployment for high-quality development of listed companies, we have formulated suppliers' business ethics requirements, and consolidated governance foundations to foster a sound business ecosystem. In 2025,
the Changhong Huayi High-quality Development "One Enterprise, One Policy" Implementation Plan , focusing on six key our Company conducted 14 integrity promotion and training sessions, covering more than 5,200 participants.
areas—strategic management, corporate governance, risk prevention and control, intelligent and digital transformation, value
creation, and assessment and incentives. Through targeted measures and systematic implementation, our Company aims to
comprehensively enhance its core competitiveness and achieve high-quality and sustainable development.
Our Company conducted integrity promotion and training sessions Covering more than
Compliance Management
Our Company has established management systems including the Changhong Huayi Compliance and Risk Control Management
System, the Changhong Huayi Compliance Review Management Measures, and the Control Procedures for Legal and Regulatory
Requirements and Compliance Evaluation . These systems cover core business processes such as sales, R&D, procurement,
manufacturing, and delivery, providing institutional support for the company's operations and risk control. In 2025, we conducted
Integrity Compliance Systems for Integrity Compliance Systems for Employees
We conducted compliance training sessions With a total of
• Several Provisions on Integrity Practice of Leaders • Code of Conduct for Procurement Personnel
in State-owned Enterprises • Code of Conduct Management System for
• Regulations on Disciplinary Actions for Managers Customer Service Personnel
Times participations. of State-owned Enterprises
Integrity Compliance Systems for Various Integrity Compliance Systems for All
Management Personnel Employees
• Several Provisions on Integrity Practice for Leaders • Employee Code of Conduct Management System
at All Levels • Management System for Incompatible Positions
• List of Integrity Risk Identification, Investigation and Segregation of Duties;
and Control • Work Recusal System for Employees' Close
• Measures for Accountability for Violations in Relatives
Business Operations and Investment
• Standards for Fault Tolerance and Exemption in
Contract Legal Review Rate（%） Contract Performance Fulfillment Number of Compliance Training Business Operations and Investment
Rate（%） Sessions（Times）
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Whistleblower Protection
Indicator Unit 2023 2024 2025
Number of Anti-bribery and Anti-corruption Training Sessions Times 7 8 8 We have established the Changhong Huayi Petition and Whistleblowing Management Measures and set up a multi-channel
reporting mechanism. Reports are centrally received by the Discipline Inspection and Supervision Department, with strict
Person- confidentiality maintained for whistleblower information. Depending on the nature of the report, investigation teams composed of
Number of Participants in Anti-bribery and Anti-corruption Training 1,550 1,600
times multiple departments are organized to conduct time-bound investigations. The handling results are fed back to whistleblowers as
appropriate, ensuring an orderly reporting mechanism.
Coverage Rate of Anti-bribery and Anti-corruption Training % 95 98 99
Total Number of Directors Receiving Anti-bribery and Anti-
Persons 7 7
corruption Training Rights and Obligations of Whistleblowers
Proportion of Directors Receiving Anti-bribery and Anti-corruption
% 100 100
Training Whistleblowers have the right to submit reports truthfully to the discipline inspection and supervision department,
using their real names, and to express legitimate claims.
Total Number of Management Personnel Receiving Anti-bribery and
Persons 204 213
Anti-corruption Training
Whistleblowers shall comply with national laws and reporting procedures, reflect facts truthfully, and shall not fabricate,
Proportion of Management Personnel Receiving Anti-bribery and distort facts, or falsely accuse others.
% 100 100
Anti-corruption Training
Whistleblowers are required, in principle, to submit reports under their real names and provide supporting evidence
Total Number of Employees Receiving Anti-bribery and Anti-
Persons 550 625
corruption Training to facilitate investigation and verification. Anonymous reports, unclear submissions, or reports with vague facts will
generally not be accepted.
Coverage Rate of Anti-bribery and Anti-corruption Training for
% 100 100
Employees in Key Positions Whistleblowing Channels
Case Integrity Warning and Education Session
Reporting Email: huayijw@hua-yi.cnmailto Reporting Hotline: 0798-8470156
Changhong Huayi organized an integrity education meeting to study and implement the important principles on integrity
governance, arranged special training on the implementation of relevant regulatory requirements, conducted collective
integrity discussions for leadership and key personnel, and organized centralized viewing of warning and education films
such as Anti-corruption for the People and Eliminating Corruption in State-owned Enterprises . Typical cases of violations
of discipline and law were also reported to enhance integrity awareness among all leadership and key position employees.
Anti-monopoly and Fair Competition
We strictly complies with the Anti-monopoly Law of the People's Republic of China, the Anti-unfair Competition Law of the People's
Republic of China, the Foreign Trade Law of the People's Republic of China , as well as relevant laws and regulations applicable
to its overseas operations. It has formulated the Code of Conduct Management System for Customer Service Personnel , actively
promotes a fair and integrity-based competitive mechanism, and is committed to fostering a fair market environment. We firmly
opposes any conduct that restricts or eliminates market competition through improper means, thereby safeguarding the healthy
and orderly development of the market.
To systematically regulate anti-monopoly and fair competition risk management, we have established a full-process management
mechanism. Risk Monitoring: Real-time tracking of updates to laws and regulations, combined with industry characteristics, to
identify potential compliance risk points. Contract Management: Refusal to include contract terms that violate fair competition or
involve price monopolization.
Changhong Huayi did Had no material And did not experience
not engage in any unfair Internal Control any significant non-
competition practices deficiencies compliance incidents
Changhong Huayi carried out integrity education and training activities.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Organizational Structure and Responsibilities for Anti-monopoly and Fair Competition
Annual Risk Assessment
Leadership Body Execution Bodies
公司每年初全面开展本单位年度初始经营风险识别评估工作，重点剖析风险产生原因，确定问题所在，评
At the beginning of each year, our Company conducts comprehensive identification and assessment of initial operational
The Discipline Inspection and Super- The Operations and Human Resources 估风险等级，完成风险排序后形成经营风险台账。
risks, focusing on analyzing root causes, identifying issues, assessing risk levels, and forming a risk register after ranking
vision Department is responsible for Department and external legal counsel
risks.
formulating and revising policies, provide compliance review opinions
organizing general and specialized for major contracts and other matters.
training, receiving internal reports and The Marketing Department ensures Routine Risk Reporting
leading investigations, and responding to strict compliance with rele vant
regulatory inquiries and investigations. systems in daily marketing plans and 公司每年初全面开展本单位年度初始经营风险识别评估工作，重点剖析风险产生原因，确定问题所在，评
Our Company has established a major risk monitoring and early warning mechanism. Each subsidiary submits a monthly
sales policies. 估风险等级，完成风险排序后形成经营风险台账。
register of major operational risks (with estimated losses exceeding RMB 5 million) to our compliance and risk control
management platform. For major risks, monthly updates on progress and effectiveness must be reported until the risk is
fully mitigated and closed. Newly identified major risks must be reported within two working days of identification. Each
Supervisory Body company also determines risk rectification targets based on actual operations, formulates rectification plans, specifies
timelines, and promotes implementation.
The Internal Audit Department conducts regular compliance audits
Special Assessment of Overseas Subsidiary Risks
and supervision of relevant business activities.
公司每年初全面开展本单位年度初始经营风险识别评估工作，重点剖析风险产生原因，确定问题所在，评
In 2025, to systematically identify and effectively prevent operational risks in overseas subsidiaries and promote sound
Risk Prevention and Governance 估风险等级，完成风险排序后形成经营风险台账。
and sustainable overseas business development, we conducted comprehensive assessments of Huayi Compressor
Barcelona S.L. and Jiaxipera Mexico. The evaluation covered strategic positioning, organizational structure, business
Enhancement models, and risk identification, resulting in a series of risk assessment reports. The assessment confirmed that both
overseas subsidiaries have well-established organizational structures and operate in strict compliance with local laws and
regulations, including taxation, environmental protection, and labor laws.
Changhong Huayi strengthens risk prevention and control as well as internal audit, promotes issue rectification, and
reinforces its risk control framework to continuously enhance governance effectiveness.
Risk Management
Our Company attaches great importance to Compliance Management, risk management, and Internal Control. It has established a Internal Audit
Compliance and Risk Prevention Leading Group, appointed a Chief Compliance Officer, and set up a dedicated compliance and risk
control management department. Responsibilities for compliance and risk control have been clearly defined across departments,
forming the "Three Lines of Defense" for compliance risk management. Our Company focuses on business processes, Internal Control, Risk Management and Control, and Compliance Management.
It continuously optimizes and improves its audit systems and mechanisms, enhances audit efficiency and effectiveness, and
strengthens full-coverage audit supervision. During the Reporting Period, our Company did not experience any material risks,
Three Lines of Defense for Compliance Risk Management of Changhong Huayi major litigation, regulatory penalties, or incidents of dishonesty.
First Line of Defense Second Line of Defense Third Line of Defense 2025
Business and functional Compliance and risk control Discipline inspection and Our Company revised and issued the Internal Audit System , strengthening the standardization, process orientation,
departments management department audit departments and digitalization of audit work, thereby improving audit quality and efficiency;
risk identification, assessment, organize the integrated system risk identification, We completed performance audits for the company and its controlled subsidiaries in 2025, along with multiple routine
control, rectification, and of compliance, risk, and effectiveness evaluation, and special audits, covering nine operating entities in areas such as business operations, management efficiency
reporting internal control supervision, and improvement, performance achievement, and risk control. A total of 58 audit findings and management concerns were
accountability identified, and 84 audit rectification measures and recommendations were proposed;
In accordance with the Company Law, the Accounting Law , and other relevant laws and regulations, and in combination with A total of 125 process-tracking projects were completed, including 7 material pricing reviews, 82 fixed asset
actual operational conditions, we have formulated the Compliance and Risk Prevention and Control Management Measures , which procurement reviews, 19 scrap material disposal reviews, and 17 service procurement reviews.
define risk identification, assessment, response, and other management activities.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Value Sharing
Changhong Huayi continuously strengthens Investor Relations Management, builds diversified communication
channels, strictly fulfills Information Disclosure obligations, and achieves value sharing with investors through
transparent communication.
Special Audits Conducted Total Amount Involved in Special Internal Audit Inspections
（Times） Audits（RMB 10,000） Conducted（Times）
Investor Relations Management
Our Company places great importance on communication with shareholders, investors, and potential investors. It continuously
enhances Investor Relations Management, actively establishes fair, transparent, and mutually beneficial investor relationships,
listens to investor feedback, improves market value management, and safeguards investors' long-term interests.
Our Company has established a multi-level interactive mechanism to ensure smooth communication channels and continuously
improve communication effectiveness:
Our Company has established a two-way communication mechanism by actively engaging
with shareholders and investors through General Meetings of Shareholders, investor site visits,
Meeting-based performance briefings, and online investor meetings.
Communication
Our Company organizes various activities, including research visits, conference calls, and on-
Investor Engagement
Audit personnel conducted inventory checks in warehouses. site tours, to help investors better understand its operations.
Activities
Case Remarkable Results from Special Audit on Plastic Parts Procurement
Through official WeChat accounts and video platforms, our Company presents its latest
developments in formats such as visual infographics and short videos. We actively leverage
In 2025, Changhong Huayi carried out a "Special Audit on Plastic diversified media channels to expand the reach and impact of information dissemination. At
Parts Procurement". The audit focused on key areas including Media the same time, we continuously improve the investor relations section of its official website to
the establishment and implementation of procurement Communication provide timely updates for investors.
systems, procurement planning, and procurement strategies.
Through this audit, three issues related to operational
efficiency improvement were identified, uncovering cost-
saving opportunities exceeding RMB 30 million. This project Our Company responds promptly to investor inquiries on the "Interactive Easy" platform.
played a significant role in enhancing operational efficiency, For issues requiring confirmation with business units, it coordinates with relevant personnel
Online Interaction
strengthening cost advantages, and supporting efficient promptly to ensure timely responses.
operations in a competitive market environment.
RMB30
Uncovering cost-saving
Dedicated investor contact telephone lines, fax, and email are maintained to ensure smooth
opportunities exceeding million
communication during working hours, with designated personnel responsible for responding
Audit personnel carefully compared each Telephone, Fax, and to investor inquiries.
type of plastic component. Email
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Safeguard Stakeholders' Interests
Our Company actively participates in large-scale investor communication events organized by
securities firms, strengthening interaction with investors and enhancing its brand image in the
Strategy Conferences
In its pursuit of steady development, Changhong Huayi consistently places the safeguard of stakeholders' interests at the core,
capital market.
comprehensively considering shareholders' interests. Our Company strictly adheres to the principles of Information Disclosure—
truthfulness, accuracy, completeness, timeliness, and fairness—and proactively discloses operational developments and major
matters through periodic reports, ad hoc announcements, and performance briefings, thereby safeguarding shareholders' right to
information. At the same time, our Company actively returns value to shareholders, implements regulatory dividend policies, and
Through proactive engagement with investors, our Company introduces its business formulates rolling three-year shareholder return plans. It has maintained stable dividend payouts for consecutive years, fostering
Two-way operations and strengthens investor understanding. harmonious relationships with shareholders and investors.
Communication
held in the repurchase account, our Company proposes to distribute a cash dividend of RMB 3.3 (tax inclusive) for every 10 shares
to all shareholders. Based on the calculation using a total share capital of 695,995,979 shares as of December 31, 2025, minus
Case Recognized as "Best Practice" for Efficient Investor Communication
approximately RMB 225.95 million (tax inclusive).
In 2025, our Company repurchased shares through centralized bidding transactions with a total amount of RMB 79.95 million
On April 28, 2025, Our Company held its 2024 annual
(excluding transaction costs). In accordance with relevant regulations, such repurchases are deemed equivalent to cash dividends.
performance briefing primarily through online interaction.
Accordingly, the total cash dividend for 2025 amounts to RMB 305.90 million, representing 62% of the net profit attributable to
A total of 23 participants registered, with 9 attending online.
shareholders of the parent company for the year.
Eight questions were addressed, achieving a 100% response
rate. To further enhance investor participation and experience,
a replay function was provided, allowing investors who
could not attend in real time to access the meeting content Indicator Unit 2023 2024 2025
afterward. To date, the webpage has received 267 views,
effectively extending the timeliness and reach of performance Cash Dividend Amount (RMB RMB 30,590 (including the
repurchased shares amount)
communication. This event was awarded the "Best Practice 10,000)
(Tax Inclusive)
in Annual Results Briefing 2024" by the China Association for
Public Companies. Proportion of the consolidated statement's
net profit attributable to the parent company's % 48 46 62
Our Company received the "Best Practice in shareholders for the year.
Annual Results Briefing 2024" award.
(RMB/
Basic Earnings per Share 0.5203 0.6469
share)
Case Regular Organization of Performance Briefings
Note: The 2025 profit distribution plan is subject to approval at the General Meeting of Shareholders. The above cash dividend
amount is calculated based on the share capital at the end of the Reporting Period and is subject to actual implementation.
Building on the annual performance briefing,
Our Company proactively organized a semi-
annual performance briefing following
the disclosure of its 2025 interim report.
According to the 2025 cash dividend ranking of listed companies released by the
The meeting was oriented toward investor
China Association for Public Companies, our Company ranked 31st in the dividend
needs, with pre-meeting announcements
payout ratio list.
a n d s o l i c i tat i o n o f q u e st i o n s . I n v e sto r
concerns were addressed comprehensively
and accurately, strengthening interaction
and enhancing investor understanding and
recognition of our business and long-term
value, thereby continuously improving the
quality of Investor Relations Management.
Invitation letters for the Invitation letter for the
Company's 2024 annual Company's 2025 semi-annual
performance performance briefing
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Our Company ensures that all shareholders enjoy their lawful During the Reporting Period Send the handling results of material information to
rights as stipulated by laws, administrative regulations, and the
the originating department/entity for filing Party Committee
Articles of Association. In particular, minority shareholders are
Our company convened three General Special Committees of
the Board
treated equally. Adequate time is provided for shareholders to
Chairman
Meetings of Shareholders, with an average Special Meeting of
General
express their views on each matter submitted for deliberation,
Independent Directors
and convenient conditions are created for shareholders to Manager
participate in General Meetings of Shareholders. Our Company
engages professional lawyers to witness the General Meetings of
investor participation rate of
reporting obligors
prepare report
Board of Directors
General Meeting of
Shareholders
Perform
approval
procedures
content
Shareholders on-site and issue legal opinions. Yes
Including: Number Archive the
Investor Number of Whether review and Perform
of Minority Reviewed and signed Securities handling
Date Session Participation Proposals information disclosure information
Shareholders by the heads of Office procedures are results of
Rate Reviewed disclosure
Participating headquarters platform required procedures
material
departments and the information
persons in charge of
June 23, 2025 2024 Annual General Meeting 40.11% 268 8 subsidiaries
No Cumulative calculation
First Extraordinary General
September 11, 2025 31.95% 179 3
Meeting of 2025
Information Reporting Process
Second Extraordinary General
December 26, 2025 37.50% 160 11
Meeting of 2025
Information Disclosure Management Prior to the disclosure of material events, periodic reports, and interim reports, our Company strictly requires relevant personnel to
register in the Insider Information Register , fulfill confidentiality obligations, and undertake not to engage in improper trading using
inside information. In 2025, our Company continuously strengthened compliance awareness among employees by conducting
Our Company complies with the Shenzhen Stock Exchange Listing Rules and the Shenzhen Stock Exchange Self-regulatory
training and communication on insider information management and internal reporting of material information through various
Guidelines for Listed Companies No. 1—Standardized Operation of Main Board Listed Companies .strengthens information
channels, including on-site communication during business analysis meetings, confidentiality training, OA system notices, and
disclosure management, performs disclosure obligations for material events, supervises relevant parties in fulfilling their disclosure
email communications. These efforts ensured standardized and orderly information disclosure practices and strict compliance
responsibilities, and ensures that information disclosure is truthful, accurate, complete, timely, fair, and effective. In addition, on
with laws and regulations applicable to listed companies.
the basis of compliant information disclosure, our Company appropriately enhances voluntary disclosure to improve the relevance
and practical value of disclosed information.
Information Disclosure-related Systems Key Performance
Information Disclosure Management Measures Registration and Management System for Insiders of
Inside Information During the Reporting Period, our Company disclosed a total of four periodic reports and 115 interim announcements.
Internal Reporting System for Material Information Its information disclosure rating by the stock exchange for 2024 was Grade B. No penalties were imposed for violations
Information Reporting Management System for External related to information disclosure.
Parties , etc.
Equal - Manner among Small and Medium-sized Enterprises (SMEs)
Our Company strictly complies with contractual terms with SMEs, ensuring that all payments due under contracts are settled
on time, with no instances of overdue payments. We are committed to maintaining sound cooperative relationships with SMEs,
upholding financial responsibility and prudent asset management, and ensuring equal treatment of all partners.
Chapter II Environment
Advancing Green Development for
Shared Prosperity
Changhong Huayi consistently regards environmental protection as a core strategy for sustainable
development and is committed to building a resource-efficient and environmentally friendly
enterprise. Through technological innovation, process optimization, and green design, our
Company comprehensively promotes energy conservation and emission reduction, contributes to
ecological civilization, actively fulfills social responsibilities, and drives green transformation within
the industry. It strives to build a green homeland and achieve harmonious coexistence between
humanity and nature.
We continuously advance refined During the Reporting Period, the
energy management to reduce energy comprehensive energy consumption
consumption intensity. per 10,000 units was 4.56 tons of
standard coal.
Strengthen Greenhouse Gas Emissions Greenhouse gas emission intensity
management and gradually reduce was 12.59 tCO2e per RMB million
emission intensity. of output value.
Enhance water conservation and Water The wastewater recycling rate
Recycling and Reuse management to reached 28.6%.
reduce water use intensity.
Strengthen the classification management The number of general and above
and resource utilization of solid waste environmental safety incidents
and standardizes hazardous waste was zero.
management.
Response to the United Nations Sustainable Development Goals (SDGs)
Green Manufacturing and Eco-friendly Factories
Ecological Protection and Sustainable Development 49
Response to Climate Change and Lean Resource Management 60
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Environmental Training
Green Manufacturing and
Eco-friendly Factories During the Reporting Period, our Company extensively carried out environmental protection training at all levels. Specialized
training was conducted on topics such as hazardous waste management and solid waste treatment to enhance employees'
professional skills and environmental knowledge. At the same time, we actively organized employees to participate in
Adhering to its mission of "protecting the Earth's environment and improving the quality of human life", Changhong environmental awareness activities such as World Environment Day (June 5), promoting environmental laws, regulations, and
Huayi integrates environmental protection requirements throughout the entire production and operation process and knowledge to improve overall environmental awareness.
strives to achieve coordinated development of economic and environmental benefits.
Environmental Compliance Management 21 22 32 686 743 683 1,474 1774 1,953
Our Company strictly complies with the Environmental Protection Law of the People's Republic of China and other relevant
national environmental laws and regulations. It has established and continuously improved its environmental management
systems, promoted Green Operations, and regularly conducted environmental safety training, striving to build a resource-efficient
and environmentally friendly enterprise.
During the Reporting Period
Number of Environmental Number of Participants in Total Duration of Environmental
Training Sessions（Times） Environmental Training（Person-times） Training (hours)（Hours）
Our total environmental protection investment amounted to RMB
and environmental protection tax paid totaled RMB
Case Training on Solid Waste Management
Environmental Governance Structure
In December 2025, the Company invited external experts
to conduct training on solid waste management. The
Our Company has established a centralized management platform for safety, environmental protection, and Occupational
training focused on definitions, classification, safety
Health and Safety (OHS). Each subsidiary has set up an environmental protection management leadership group. Guided by the
management standards, and identification methods.
environmental management policy of "compliance with laws and regulations, environmental protection, energy conservation and
Through training on laws and regulations such as the
emission reduction, and continuous improvement", our Company systematically advances environmental management initiatives.
Law of the People's Republic of China on the Prevention
and Control of Environmental Pollution by Solid Waste
Our Company has formulated environmental management systems, including the Environmental Protection Responsibility System,
and the National Catalogue of Hazardous Wastes (2025
the Environmental Management System for Construction Projects , and the Responsibility System for the Prevention and Control of
Edition) , participants mastered methods for identifying
Environmental Pollution by Hazardous Waste , to continuously standardize environmental management practices.
solid waste and understanding its hazards. They also
became proficient in regulatory procedures, enabling
standardized classification, collection, and labeling,
thereby reducing compliance risks. Responsibilities of
different units in solid waste management were clarified,
During the Reporting Period, reducing the likelihood of environmental incidents and
Changhong Huayi, Huayi achieving positive training outcomes. Training Session
Jingzhou, and Jiaxipera all
o bta i n e d I S O 1 4 0 0 1 : 2 0 1 5
Environmental Management
System certification, effectively
e n s u r i n g t h at p ro d u ct i o n
and operations comply with
environmental standards.
Environmental Management System Certification Certificates
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Our Company completed the triennial filing of its environmental emergency response plan
During World Environment Day
activities, the Company promoted Conducted environmental monitoring activities with no abnormal indicators identified,
environmental safety knowledge
through workshops, distribution
of informational materials, and
And organized
training sessions.
Green Operations
Our Company advocates green and low-carbon working and lifestyle practices and actively promotes Green Operations. During
the Reporting Period, by deploying a Single Sign-On (SSO) unified identity authentication system and integrating the S6 financial
approval system, our Company improved operational efficiency and data security while achieving fully online and paperless
approval processes.
Safety Emergency Drill Training Activities
Promoting Cleaner Production
Our Company actively promotes green and low-carbon production methods and implements clean energy substitution initiatives.
Through measures such as constructing distributed photovoltaic power generation facilities, utilizing waste heat recovery from
air compressors, and optimizing the energy mix, our Company steadily increases the proportion of green electricity usage,
achieving a share of over 30% in production and operations. During the Reporting Period, our Company actively promoted process
optimization for energy conservation, equipment upgrades, and optimization of energy systems. It continued to implement
energy-saving upgrades for equipment with high energy consumption and low efficiency, including air compressors, chillers, water
Financial Approval System pumps, and fans, and accelerated the elimination and replacement of inefficient transformers, motors, and pumps, effectively
reducing energy consumption.
Environmental Risk Management
Green Factory Construction
Our Company places great importance on Environmental Risk Management and continuously improves its comprehensive
emergency response plans for environmental incidents. Through regular safety inspections in various forms, it conducts Our Company actively promotes the construction of Green Manufacturing facilities. Through technological innovation and process
comprehensive identification of environmental risks and hazards, takes timely and effective measures, prevents and mitigates the optimization, it effectively controls energy consumption and emissions. By implementing projects such as rooftop photovoltaic
environmental impact of emergencies, and enhances environmental risk prevention and emergency response capabilities. power stations, energy storage systems, and waste heat recovery, its green operation capabilities have been continuously
enhanced, contributing to the development of a green and low-carbon ecosystem.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
In 2025, Huayi Jingzhou adopted a "refined management" model and completed the construction of a rooftop photovoltaic
power station, reducing fuel consumption and supporting green production. At the same time, the establishment of an intelligent
Co-creating a Green and Beautiful Factory
microgrid and the application of intelligent equipment have enabled optimized energy management, improved equipment
operational efficiency, and reduced energy consumption. Our Company is committed to building eco-friendly factories and strengthening its ecological foundation. In 2025, we continued
to advance the "Beautiful Factory" initiative, integrating green development ideal into every aspect of our operations. Through
During the Reporting Period, Changhong Huayi obtained the first "Zero-carbon Factory" certification in the hermetic reciprocating afforestation and greening efforts, we maximized green coverage wherever possible, making greenery the most distinctive feature
compressor industry. Huayi Jingzhou was awarded the title of "2025 Hubei Province Green Factory". Jiaxipera's VTN1116Y small of our factory areas. From the "Four Beauties" concept to the integration of "Production, Living, and Ecology", we are shaping a
ultra-high-efficiency variable-frequency refrigerator compressor was included in the First Recommended Catalogue of Green new vision of high-quality development through ecological practices, transforming factories into not only centers of productivity
and Low-carbon Electronic Appliances and Components , and its R600a hydrocarbon refrigerant variable-frequency compressor but also green and livable environments.
technology was selected for the Catalogue of Advanced Energy-saving and Carbon-reduction Technologies in Key Areas of Light
Greening and Afforestation Investment (2025)
Industry (2025 Edition) .
Investment in
Number of Trees Planted for Greening
Greening
During the Reporting Period Factory
Number of Trees Planted
(RMB 10,000) Lawn Area Planted (m?)
(units)
Changhong Huayi 18.59 420 336
Huayi Jingzhou 9.72 60 85
Jiaxipera 6.9 39 2,196
Total 35 519 2,617
Case Building Year-round Ecological Landscapes and Protecting Biodiversity
In 2025, with 519 trees as the structural framework and 2,617 m? of shrubs and grass as the foundation, the Company
Changhong Huayi "Zero-carbon Factory" Huayi Jingzhou "2025 Hubei Province Green Factory"
created a landscape featuring "green in all seasons and flowers in three seasons". This layout enhances seasonal aesthetics
Certification Title
through staggered flowering and foliage cycles while also delivering ecological benefits. Continuous floral resources across
three seasons provide essential support for pollinators and other wildlife, thereby improving biodiversity and ecosystem
resilience within factory areas.
Jiaxipera VTN1116Y Inclusion Certificate in Green Jiaxipera R600a Hydrocarbon Refrigerant Variable-
Product Catalogue Frequency Compressor Technology was Selected for
the Catalogue of Advanced Energy-saving and Carbon-
Planted 4 camphor trees Planted 84 camellia trees
reduction Technologies in Key Areas of Light Industry
(2025 Edition) .
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
In 2025, our Company revised and improved 20 environmental management systems, including the Noise Control Procedure,
Wastewater Control Procedure, Exhaust Gas Control Procedure , and Environmental Factor Identification and Evaluation Control
Our Company organized a Tree Planting Day initiative under the theme "Practicing Green Development and Building
Procedure , forming a comprehensive management framework covering pollution prevention, resource utilization, and ecological
Strength for the Future". This initiative adopted a responsibility system with clear accountability for each tree and area,
protection, and clarifying standards, processes, and responsibilities.
ensuring long-term maintenance. The activity aimed to strengthen coordinated efforts across party organizations,
administration, labor unions, and youth groups, enhance team cohesion, promote green development ideal, and build a
corporate ecological culture, thereby adding green momentum to the Company's high-quality development.
Exhaust Gas Management
Our Company standardizes the management of exhaust emissions from production workshops. Emissions are collected through
ventilation hoods and treated using catalytic combustion equipment, oil fume purifiers, and bag-type dust collectors before
compliant discharge, thereby enhancing overall air pollution control performance.
In 2025, our Company completed updates to its pollutant discharge permits, further refining hazardous waste categories and
exhaust gas monitoring indicators. The Jiaxing plant constructed 13 sets of exhaust gas treatment facilities, significantly improving
compliance capacity and reducing pollutant concentrations.
The introduction of intelligent exhaust gas treatment devices has effectively improved the
Case
efficiency of exhaust gas purification.
During compressor production, electrophoretic coating processes generate harmful gases. At the Jingzhou plant, exhaust
gases are directed through ducts into a cyclone spray tower for cooling and dust removal, eliminating particulate matter
Ecological Protection and Sustainable and oil. After moisture removal, gases enter a secondary activated carbon adsorption system, where organic pollutants are
absorbed. The treated gas is then discharged in compliance with standards.
Development In 2025, Huayi Jingzhou installed VOCs online monitoring systems, enabling real-time monitoring and reporting of
methane and non-methane hydrocarbons, thereby improving data monitoring efficiency.
Changhong Huayi strictly complies with the Law of the People's Republic of China on the Prevention and Control of
Atmospheric Pollution, the Law of the People's Republic of China on the Prevention and Control of Water Pollution, the Law
of the People's Republic of China on the Prevention and Control of Soil Pollution , and other environmental laws and local
regulatory requirements. Our Company strictly controls the generation and discharge of pollutants such as wastewater,
exhaust gas, and solid waste, striving to minimize environmental impacts arising from production and operations.
Pollutant Treatment
Our Company strictly implements industry and local standards, including the Integrated Wastewater Discharge Standard and the
Emission Standard for Industrial Enterprises Noise at Boundary . It standardizes the management of exhaust gas, wastewater, solid
waste, and boundary noise generated during operations. Through source reduction, classified management, and recycling, our
Company reduces solid waste emissions and strengthens the treatment and control of exhaust gas and wastewater, ensuring that
all pollutants are discharged in full compliance with applicable standards.
Exhaust Gas Treatment Facilities VOCs Online Monitoring Equipment
During the Reporting Period
Wastewater Management
the pollutant discharge compliance rate was %, with environmental pollution incidents or
regulatory penalties. Our Company manages wastewater discharge in compliance with regulations and has established the Wastewater Control
Procedure , defining management processes for production wastewater, domestic wastewater, and treatment facilities. Through
combined physicochemical and biological treatment processes, wastewater is treated to meet regulatory standards.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
During the Reporting Period, Jiaxipera constructed three wastewater treatment In 2025, our Company formulated the Responsibility System for the Prevention and Control of Environmental Pollution by
systems and completed biochemical upgrades to ensure compliance and Hazardous Waste and established a leadership group headed by the General Manager.
reduce pollutant concentrations. Huayi Jingzhou, based on the concept
of "pollution control and resource recycling", established a centralized
wastewater treatment plant to treat production and partial domestic
wastewater, achieving compliant discharge and reducing environmental During the Reporting Period
pressure on surrounding water bodies.
Hazardous waste transfer manifest execution rate:
, Compliance disposal rate:
No incidents of leakage or improper disposal occurred.
Wastewater Control Procedure
Indicator Unit 2023 2024 2025
Hazardous Waste Generated Tons 1,542.26 1,749.845 1,911.35
Hazardous Waste Emission Intensity Tons/RMB 10,000 0.001462 0.001357 0.001622
During the reporting period, Changhong Huayi standardized the treatment of hazardous waste.
Huayi Jingzhou invested RMB 3 million in constructing a sludge treatment station with a daily processing capacity of 300
tons. Since the new process was put into operation in June 2025, a total of 28,000 m? of industrial wastewater has been Dedicated containers with hazard labels are used, and different types of hazardous waste (e.g.,
Classified
treated. waste oil, spent activated carbon, reagent bottles) are stored separately;
Collection
Storage areas are hardened, equipped with containment measures and anti-leak pallets, with
Temporary strict time limits and detailed records of generation, transfer, and disposal;
Storage
Hazardous Waste Management Management
Our Company strictly complies with the Law of the People's Republic of China on the Prevention and Control of Environmental
Pollution by Solid Waste and other regulations. We has established and implemented the Hazardous Waste Management System Disposal is entrusted to qualified entities, with full traceability ensured through strict
Compliant
to strengthen full lifecycle management of hazardous waste, including storage, transportation, and disposal. Our Company has implementation of transfer manifest systems.
Disposal
established standardized hazardous waste storage facilities and signs transfer and disposal agreements with qualified third-party
institutions. It ensures proper collection, storage, and transfer of hazardous waste, thereby minimizing environmental impact and
supporting green production.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Case Changhong Huayi organized and conducted an emergency drill for hazardous waste leakage. Efficient Use of Resources
In November 2025, our Company conducted an emergency drill simulating a grinding sludge leakage incident. During Changhong Huayi actively responds to national initiatives for building a resource-efficient and environmentally friendly society. In
transport, sludge (simulated using water-filled containers) was accidentally spilled. strict compliance with the Energy Conservation Law of the People's Republic of China and other relevant regulations, our Company
integrates green and low-carbon principles throughout its operations. It systematically promotes energy conservation, resource
Emergency response teams secured the area, wore protective equipment, and used sawdust to contain and absorb the efficiency, and recycling, reducing dependence on natural resources and minimizing environmental impact.
spilled material, preventing it from entering drainage systems. The absorbed waste was then collected and transferred
to hazardous waste storage for compliant disposal. The drill achieved the expected results and effectively improved
emergency response capabilities.
Water Resource Utilization
Our Company places strong emphasis on water conservation and efficient utilization, strictly complying with the Water Law of the
People's Republic of China and related regulations. It has established internal water management systems and embeds water-
saving practices throughout production and operations.
Jingdezhen plant reduced water consumption by
year-on-year, a decrease of
The emergency response team used to contain and absorb the spilled grinding sludge.
, and water consumption per unit product decreased by
% %
Solid Waste Management
Indicator Unit 2023 2024 2025
Our Company implements full lifecycle control over solid waste, including generation, collection, storage, transportation,
utilization, and disposal. It engages qualified third parties for standardized and harmless disposal to prevent environmental Fresh Water Intake Volume Tons 978,592 1,102,185 1,003,649
pollution.
Total water usage Tons 9,445,182 11,952,941 17,955,410
During the Reporting Period
Water intensity Ton/unit 0.0130 0.0127 0.0117
Total non-hazardous waste generated Total recycled and reused waste Recycling rate
Recycled water volume Tons 8,466,650 10,850,573
Recycled water ratio % 89.64 90.78 94.41
Indicator Indicator 2023 2024 2025
Note: Due to business growth and increased recycled water volume, total water consumption has increased.
Total Non-hazardous Waste Generated Tons 39,050.98 49,207.14 50,645.63
Non-hazardous Waste Generated per RMB
Tons 3.02 4.11
Million of Revenue
Total Recycled and Reused Waste Tons 38,430.98 48,463.64 49,689.91
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Case Jiaxipera's Recycled Water Recycling Project Alleviates Production Water Pressure Case Jiaxipera Strengthens Water Resource Management Through the Carbon Management System
In 2025, the phase II of the Jiaxipera's recycled water recycling project was completed and put into operation. This project In 2025, Jiaxipera relied on the Carbon Management System and installed approximately 160 smart water meters across
utilizes a "biological pretreatment + multi-stage filtration + reverse osmosis desalination" closed-loop treatment system. With four factories to collect real-time water usage data from workshops and production lines. The system set thresholds for
the synergy of anti-pollution membrane technology and multi-stage pretreatment processes, the removal rate of colloids, equipment to dynamically monitor water usage. If the threshold is exceeded, it is displayed on the data dashboard. At the
organic matter, and other impurities in the water reaches 60%–80%, and the membrane fouling rate has decreased by 40%. same time, the data dashboard also shows daily energy usage trends for major energy-consuming equipment, assisting
This approach achieves both environmental and economic benefits, with an annual recycling volume of 116,800 m?. This not energy managers in assessing water usage.
only reduces municipal tap water consumption but also alleviates the production pressure on the desalination water system,
providing strong support for the company's water resource recycling and green, low-carbon development. Additionally, our Company has established a rainwater collection system. By the end of 2025, 5,500 tons of rainwater
had been collected. The recycled rainwater is mainly used for landscape irrigation, water reuse, and toilet flushing in the
workshops, greatly enhancing water resource recovery efficiency.
Recycled Water Reuse Membrane Modules
Strengthening Water Resource Management Through the Carbon Management System
Recycled Water Reuse Operation Monitoring Dashboard Rainwater Collection Basin on Site
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Energy Utilization Actively Promote Clean Energy Use and Enhance Energy Efficiency
To enhance energy management, reduce energy consumption, and improve energy efficiency, our Company has established
Changhong Huayi
various institutional documents, including the Energy Management System," "Energy Benchmarks and Performance Parameters
Setting Procedures, focusing on energy management, equipment energy efficiency improvement, process technology upgrades,
and promoting the use of clean energy. These measures help improve energy efficiency and management levels, supporting the A 2-ton mesh-belt annealing furnace was purchased for the workshop, reducing natural gas consumption by 26% per
achievement of the "dual carbon" goals. day in 2025 compared to 2024, with a 40% reduction in natural gas consumption per unit in the process. Natural gas
consumption decreased by 277,596 m?, with an increase of 43,700 kWh in electricity consumption due to changes in
In 2025, guided by the "dual carbon" objectives, Jiaxipera formulated energy target indicators and monthly performance tracking equipment energy structure. The overall annual CO2 emission reduction reached 480 tons (tCO2e).
for key energy-consuming equipment," and released a notice on "strengthening the economic operation management of air
conditioning and post ventilation and the use of peak and off-peak electricity . By staggering air conditioning cooling, arranging
Xiangyi Jingzhou
equipment temperature rises reasonably, and shifting vehicle charging to off-peak hours, our Company saved 967,000 kWh on air
conditioning, directly reducing CO2 emissions by 680 tons. The efficiency of peak and off-peak electricity usage increased by 1%.
At the same time, Jiaxipera has continued to implement energy-saving retrofits for energy-intensive and low-energy efficiency Actively using renewable energy, the factory installed a 0.88 MW rooftop distributed photovoltaic system. The use of
equipment such as air compressors, chillers, pumps, and fans. By eliminating inefficient transformers, motors, and pumps, energy renewable energy accounts for more than 10% of the total building energy consumption. Street lights are powered by
consumption has been reduced. wind-solar complementary solar street lights.
Jiaxipera also utilized over 2.3 million kWh of distributed photovoltaic power generation, reducing carbon emissions by 1,618
tons. HuaYi Jingzhou, in accordance with the requirements of GB/T 23331-2020/ISO 50001:2018 Energy Management System, has
established an energy management system and successfully obtained ISO 50001 certification.
Indicator Unit 2023 2024 2025
Electricity 10,000 kWh 13,280.15 14,772.64 21,290.09
Natural Gas 10,000 m? 739.70 820.81 1,140.79
Gasoline Tons 108.20 97.31 87.97
Diesel Tons 281.00 232.82 168.74
Tons of standard coal Rooftop Photovoltaic System Wind-Solar Complementary Solar Street Lights
Total Energy Consumption 35,882.56 39,121.65
equivalent
Energy Consumption Per Tons of standard coal
Unit equivalent per 10,000 units
Established a distributed photovoltaic power station with an installed capacity of 1.692 MWp, generating an average
of 1.6 million kWh per year, and actual generation of 2.19 million kWh, accounting for 2.4% of the company's total
Note: In 2025, the scope of electricity and natural gas data coverage was expanded ,the scope of statistics is based on the electricity consumption. This has reduced CO2 emissions by 1,540 tons annually, equivalent to planting 80,000 trees.
consolidated statement.
This has reduced CO2
emissions by annually
equivalent to planting
Distributed Photovoltaic System
Energy Management System Certification
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Circular Economy Response to Climate Change and
Our Company integrates circular economy concepts into all production processes by optimizing production technology, using Lean Resource Management
recyclable packaging materials, and promoting green procurement. It comprehensively advances the efficient use and recycling of
resources, minimizing resource waste and environmental pollution.
Changhong Huayi actively responds to national "dual carbon" policies by constructing a scientific, systematic carbon
reduction path, covering aspects such as energy structure, production and operations management, green design,
and supply chain. Our Company continues to advance energy conservation and emissions reduction as well as green
product R&D. Through energy-saving and emission-reduction practices, promoting clean technology applications, and
Recyclable Plastic Board for Compressor Packaging
enhancing resource utilization efficiency, our Company contributes to global climate governance.
To address the resource waste
and solid waste pressure caused
by single-use foam packaging for
Climate Change Management
compressors, Jiaxipera launched
a packaging material recycling
initiative for the compressor Governance
product line. Traditional single-
use foam has been replaced by Our Company has established a comprehensive management mechanism to address climate change. It has set up a Zero-Carbon
reusable custom plastic boards. Factory System Committee and developed institutional documents such as the "Environmental Protection Responsibility System,"
The reuse rate of plastic boards "Greenhouse Gas Emissions Management System," and "Energy Management System" to systematize its response to climate
is 35%, and the cost per use is change.
reduced by 60% compared to
foam.
Strategy
Recycled Plastic Board In 2025, our Company developed a medium- and long-term plan for creating a zero-carbon factory. It quantified goals
and indicators related to low-carbon manufacturing, circular economy, and zero-carbon emissions, and established clear
implementation plans to achieve these goals.
Indicators and Goals
Cold Oil Supply System Retrofit Improves Resource Recycling Efficiency
To support the achievement of the "dual carbon" goals, our Company has set the "carbon peak" target for 2029 and the "carbon
In 2024, Jiaxipera generated 2 tons of neutrality" target for 2050, with specific, quantifiable indicators, and promoted the realization of relevant goals during the reporting
hazardous PE film (about 400 oil bags) period.
during production. This mode incurs
high transportation costs, approximately
Carbon Reduction Targets: Reduce absolute or intensity-based greenhouse gas emissions by 1% per year.
film, and occupies a large storage area
with leakage contamination risks. To
address this resource waste issue, our
Indicator Unit 2023 2024 2025
Company launched the second-phase
cold oil supply system retrofit in August
Total Greenhouse Gas
Emissions
oil bag supply system into a centralized
oil supply from an oil tank. This retrofit
Direct Greenhouse Gas
reduces around 400 PE oil bags annually Tons of CO2 equivalent 17,218.49 18,109.21
Emissions (Scope 1)
and improves resource recycling while
reducing hazardous waste generation. Indirect Greenhouse Gas
Tons of CO2 equivalent 91,887.51 104,210.66
Emissions (Scope 2)
On-site Centralized Oil Supply Tank Note: The data scope includes Changhong Huayi, Jiaxipera, and Xiangyi Jingzhou.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Risk/ Potential
Identification of and Response to Climate-related Risks Opportunity
Description of Risk/
Financial Response Measures
Opportunity
and Opportunities Type Impact
We actively respond to the risks and impacts arising from climate change by establishing a climate risk management process. Increasingly stringent
Through internal research, industry studies, and external recommendations, we identify, analyze, assess, and manage significant environmental
•
Transition
climate-related risks and opportunities. Based on the results of risk identification, we formulate targeted mitigation measures performance disclosure Increased Proactively and promptly disclose the series of measures
Risks：
and promote the integration of climate risk management into our multi-department risk management processes. In 2025, our requirements raise costs the company has taken in response to climate change,
Brand Risks
Company analyzed and assessed the climate-related risks (including Physical Risks and Transition Risks) and opportunities facing the compliance costs Reduced including governance, strategic planning, targets, actions,
its business, and actively responded to climate change challenges. associated with revenue and performance.
maintaining or enhancing
Risk/ Potential
Description of Risk/ brand reputation.
Opportunity Financial Response Measures
Opportunity
Type Impact
• Enhance emergency response capability：formulate and
Extreme weather events such promptly update contingency plans for extreme weather and
Potential
Risk/Opportunity
as extreme heat, extreme natural disasters, conduct regular drills, and continuously
Description of Risk/Opportunity Financial Response Measures
Type
precipitation, river flooding, improve emergency response mechanisms.
and coastal flooding may Impact
• Diversify the energy mix：expand distributed photovoltaic
Increased
lead to risks affecting the
Physical Risks stability of production and
expenditure
coverage at production bases in Jingdezhen, Jingzhou, and Against the backdrop of the Dual
Reduced
operations, the safety of Jiaxipera, and deploy supporting energy storage systems to Carbon Goals (Carbon Peak and
revenue
•
plant facilities and assets, enhance self-sufficiency in power supply. Carbon Neutrality), social demand
Strengthen feasibility studies on the R&D
interruptions in energy for green and low-carbon products
• Strengthen supply chain resilience management：establish Product
and application of low-carbon technologies,
supply, and disruptions to and services may increase. The
and Service
Increased continuously improve the green product
raw material supply chains. multi-regional backup supply mechanisms and set safety stock continued development and
Opportunities
revenue portfolio, provide innovative solutions for low-
thresholds for critical components. provision of low-carbon products,
carbon transition across industries, and reduce
services, and solutions can enable
Sustainability disclosure downstream value chain carbon emissions.
•
the company to better adapt
requirements of the Closely monitor changes in domestic and international
to market demand and obtain
Shenzhen Stock Exchange environmental and carbon-related laws, regulations, and
additional orders.
Transition
and overseas jurisdictions policies; proactively consider policy adaptability; and improve
Reduced
Risks：
will gradually strengthen internal management and compliant disclosure.
revenue As the State gradually introduces
Policies and
climate-related information
•
Increased supportive policies for new energy,
Regulations •
disclosure requirements, Actively participate in the revision of domestic and
Opportunities
costs the accessibility of renewable energy Deploy photovoltaic power generation, expand
imposing new requirements international green industry standards to ensure that product
in Energy Use
is expected to improve and its prices Reduced the use of clean energy, and gradually increase
on the company's climate design is forward-looking and aligned with international
Structure
may gradually decline. The use of costs the proportion of electricity from new energy
change management and regulations.
renewable energy in production and sources.
information disclosure.
operations can reduce direct energy
•
costs.
Customers are increasingly Carry out product Carbon Footprint certification by applying
•
demanding low-carbon and for third-party carbon labels for major products and providing
Actively participate in international certification
Transition
environmentally friendly transparent low-carbon performance data.
Actively responding to domestic and standard-setting to enhance the
Risks：
products, requiring suppliers Reduced
•
and international climate policies competitiveness of the company's products in
Market Risk
to provide Carbon Footprint revenue Promote green supply chain development, strengthen
and climate-related Information international markets.
data for the full product life cooperation with high-quality suppliers that meet the
Market
Disclosure requirements will help
•
cycle and to reduce carbon industry's green and low-carbon development requirements, Increased
Opportunities
the company enter more markets, Proactively disclose information on measures
intensity year by year. and prioritize the procurement of low-carbon raw materials. revenue
enhance its competitiveness in taken in response to climate change, enhance
•
domestic and international markets, the transparency of the company's sustainable
Strengthen feasibility studies on the R&D and application of
and gain greater recognition from development Information Disclosure, and
If investment in energy- low-carbon technologies.
Transition
Increased customers and partners. meet market access thresholds in domestic
saving and carbon-reduction
Risks： •
costs and international markets.
technologies lags behind Increase investment in scientific and technological R&D, carry
Market Risk
Reduced
peers, the company may fall out industry cooperation, and work with value chain partners
revenue
behind market demand. to jointly promote the R&D and application of low-carbon
technologies, thereby narrowing the technology gap with peers.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Practical Measures to Address Climate Change Green Warehousing
Our Company embeds low-carbon requirements throughout the entire supply chain and focuses on promoting upgrades in green
warehousing, transportation, and packaging. In 2025, our Company achieved a systematic upgrade of its warehousing and logistics
Clean Technologies operations by introducing the CTU + AGV intelligent material distribution system in its warehouses.
Our Company adheres to green and low-carbon development as its core strategy. Through technological innovation, systematic
equipment upgrades, and green innovation practices, it comprehensively advances the R&D and application of carbon-reduction
technologies, improves resource efficiency, and reduces carbon emissions, thereby providing innovative solutions for sustainable Circular Packaging
development.
In product packaging design, our Company consistently follows the principles of reduction, reusability, recyclability, renewability,
Key Core Technologies Applied in Promoting Green and Low-carbon Products
and biodegradability. By prioritizing environmentally friendly and recyclable packaging materials and optimizing packaging
structures to reduce packaging waste and transportation costs, our Company promotes the transition to sustainable packaging
and pursues both environmental and economic benefits.
In 2025, to address the problems of damage during the transportation of return bends and excessive waste from one-time
CFC-free Compressor
CFC-free compressor technolog y is regarded as a highly for ward-looking green and
packaging, our Company introduced PP plastic box circular packaging and established a recyclable system. During the year, 1,000
Technology
environmentally friendly technology and complies with international environmental protection
standards. reusable packaging boxes were put into use, achieving a 100% recovery and reuse rate and reducing the consumption of one-time
packaging (cartons) by 30 tons.
High-efficiency Energy-
Through technological innovation, our Company has successfully increased the energy efficiency
saving Technology
ratio of compressors from the initial 0.95–1.0 to above 1.7, thereby improving the energy-saving
performance of refrigerators.
Miniaturization
Through technological innovation and the application of new materials, our Company has
and Lightweight
adopted environmentally friendly, efficient, and lightweight materials, successfully reducing
Technology
compressor weight to 5 to 6 kg, with the smallest models weighing only 4 to 5 kg. This not only
provides more usable space in refrigerators, but also saves materials and resources.
Carbon Footprint Management
In 2025, in accordance with the require-
ments of ISO 14067, Jiaxipera successfully
completed Carbon Footprint certification
for its refrigerator compressor product
(VTE1116Y) through preparatory work,
boundary determination, data collection
and calculation, report preparation, and
internal review.
Carbon Footprint Certification Certificate
Chapter III Society
Fostering Huayi's Core and
Empowering Co-growth
Changhong Huayi consistently adheres to technological innovation as the driver of
High-quality Development and continues to consolidate its leading position in the
industry. Through a sound supplier management system and continuous optimization
of production and operations, our Company safeguards supply chain stability and
operational efficiency. It remains customer-centric, responds rapidly to diversified
needs, and provides comprehensive and professional service support. At the same
time, our Company attaches great importance to the lawful rights and interests
and career development of its employees. By improving institutional systems and
implementing people-oriented care measures, it continuously enhances employees'
sense of gain and belonging. On this basis, our Company actively fulfills its social
responsibilities and continues to advance rural revitalization initiatives, injecting
momentum into sustainable regional and rural development.
Zero occupational diseases Achieved
Zero fatality rate Achieved
training for new employees, transferred
Achieved
employees, and employees returning to
work
Number of major and above safety Achieved
accidents: zero
I n n o vat i o n - d r i v e n D e v e l o p m e n t a n d 67
Intelligent Manufacturing Upgrading
Response to the United Nations Sustainable Development Goals (SDGs)
Quality Excellence and Value Chain Synergy
Employee Development and Protection of 85
Rights and Interests
Compassion and Responsibility,
Empowering Rural Communities
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Innovation-driven Development and VNW series variable-frequency compressors achieved an energy efficiency ratio of 2.75 W/W
Intelligent Manufacturing Upgrading The VNW series compressors are the most efficient Variable-frequency Compressors developed by our Company in 2025.
Simultaneous optimization was carried out in valve group efficiency, mechanical efficiency, motor efficiency, and inverter
board efficiency. After one year of technical research, the energy efficiency ratio under refrigerator operating conditions
Our Company has established a multi-level, integrated, and high-standard R&D system. It operates a national-level
reached 2.75 W/W. With features such as ultra-high efficiency, ultra-low noise, a high refrigeration-to-weight ratio, and
technology center, provincial-level key enterprise research institutes, and joint R&D centers. It has also established a
high reliability, the product ranks among the international leaders and has become the preferred compressor for high-end
number of industry-academia-research laboratories in collaboration with well-known universities such as Zhejiang
customers' super energy-saving refrigerators.
University, Zhejiang University of Technology, and Zhejiang Sci-Tech University. At the same time, it has brought
together a leading and innovative technical R&D team composed of doctoral and master's degree holders as the core,
demonstrating strong R&D capabilities. Our Company applies advanced tools such as three-dimensional design and
simulation analysis to carry out digital compressor design. It has mastered core technologies for Hermetic Reciprocating
Compressors, including high efficiency, variable-frequency control, low noise, lightweight design, and intelligent
control, and has achieved independent control and independent breakthroughs in key core technologies.
Technical Center
Technology Strategy Committee Technical Expert Committee
Changhong Huayi was recognized as a National Jiaxipera was nationally recognized as an
Department
Technical Management
Department
Technical Development
Technical Research Department
Department
Technical Laboratory
Electronic Control Department
Department
Commercial Development
Development Department
Special Compressor
Technical Process Department
Department
Technical Application
Pilot Workshop
Overseas Technical Center
Co., Ltd.
(Hangzhou) Technology R&D
High-tech Enterprise Enterprise Technology Center
Changhong Huayi Cubigel demonstrated its global leadership through two ultra-high-efficiency new
Case
products and the TOP1 Plan:
From September 9 to 12, 2025, at FEBRAVA, the global refrigeration industry event held in S?o Paulo, Brazil, Changhong
Huayi's Cubigel brand once again made a strong appearance as a global leader in commercial compressors. As the world's
No. 1 light commercial compressor brand by sales volume, Changhong Huayi Cubigel not only demonstrated the leading
Our Company has established a Technological Innovation System covering four subsystems: decision-making and strength of its "dual ultra-high-efficiency" products and its new NUE/NUD series, but also brought the "Glory & Future |
command, organizational operation, institutional support, and resource support. It follows the "five interlinked rings" TOP1 Plan", following its global customer conference in Dubai, to the South American stage, fully showcasing the latest
methodology—strategy as the guide, resources as the foundation, value as the orientation, competition as the driving progress in the implementation of its strategy.
force, and creation as the core—to systematically advance the development of technological innovation capabilities.
Major Innovation Breakthroughs in 2025
Innovation in variable-frequency control technology, VX compact platform 2026 new refrigeration
with efficiency improved by more than 1% appliance product portfolio
The ultra-high-efficiency household variable- Focusing on the 2026 new national energy efficiency
frequency control board completed R&D based on standards upgrade for refrigerators and commercial
a variable carrier control strategy, with efficiency freezers, as well as the transition of freezers from
improved by more than 1%. The cost of the new fixed-frequency to variable-frequency technology, the
T-series variable-frequency control board was VX compact platform completed the development of
reduced by more than 35%, and its algorithms were more than 30 new product projects, covering multiple
fully developed in-house. A breakthrough was also application scenarios and continuously meeting
achieved in the electrolytic capacitor-free variable- customer needs.
frequency control board solution, and prototype
samples were completed. FEBRAVA International Refrigeration Exhibition
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Standardization Development
We introduced the IPD process and advanced tools such as APQP, QFD, and FMEA to ensure
product quality.
As the leading organization for revising national standards for refrigerator compressors, Changhong Huayi has also participated in Project Management
the formulation and revision of 4 international standards, 13 national standards (including 3 under its leadership), and 11 industry
standards, playing an important role in the development of the industry's standard system.
Through a three-dimensional model combining "master-apprentice training, technical
lectures, and on-the-job training", together with a "three-point" management mechanism, our
Company has built a learning-oriented, service-oriented, and innovation-oriented team. It also
Talent Development
formulated the Measures for R&D Personnel Performance and Project Management to enhance
and Incentives
Participated in the formulation and
national standards innovation vitality among talent.
revision of
(including 3 under its leadership)
industry standards
We connect the upstream and downstream value chain by working with suppliers to optimize
component design and collaborating with customers on whole-unit efficiency improvement
External Cooperation studies.
Standards participated in by Changhong Huayi in 2025:
In April 2025, our Company hosted the expert seminar on revising the GB/T 21001 series national standard Refrigerated We formulated the Measures for R&D Personnel Performance and Project
Display Cabinets. Management , under which individual performance is closely linked to our
strategy and project objectives, and the full project lifecycle is managed in a
The group standards in which we participated—T/CSTE 0712-2025 Quality Grading and "Leader" Evaluation unified and standardized manner, with a focus on improving project quality and
Requirements for Commercial Refrigeration Cabinets Part 2: Self-contained Display Cabinets, T/CSTE 0713-2025 Quality delivery efficiency. At the same time, a quantifiable assessment and distribution
Grading and "Leader" Evaluation Requirements for Commercial Refrigeration Cabinets Part 3: Beverage Refrigerated mechanism has been established to effectively stimulate the initiative of the R&D
Display Cabinets, and T/CSTE 0714-2025 Quality Grading and "Leader" Evaluation Requirements for Commercial team and optimize the allocation and utilization efficiency of R&D resources.
Refrigeration Cabinets Part 4: Solid-door Commercial Refrigeration Cabinets—came into effect on April 7, 2025.
Our Company was deeply involved in the formulation of national standards including GB/T 8059-2025 Household and
Similar-use Refrigerating Appliances, Green Product Assessment for Household Appliances Part X: Motor-compressors
for Household and Similar-use Appliances, and Performance Test Methods for Bottled, Canned and Other Packaged
Beverage Vending Machines.
Our Company also participated in and completed the formulation of the group standard Scroll Compressors for New
Energy Refrigerated Vehicles, which is expected to be officially released and implemented in 2026.
Integration of Industry, Academia, and Research
R&D and Innovation
Changhong Huayi has deepened its Industry-Academia-Research Collaboration model. It has carried out R&D on high-performance
motors and electronic control technologies with Zhejiang University, and R&D on key technologies for intelligent life testing of
Changhong Huayi has established a five -dimensional integrated R&D and
innovation management system covering "resources, processes, talent, ecosystem, factories, high-efficiency products, new energy adaptation, and intelligent testing, gradually building an innovation system that
and mechanisms". Through rigid safeguards for R&D investment, refined project integrates technological breakthroughs with industrial application.
R&D investment amounted
management, strategic talent cultivation, open collaborative innovation, and multi-
level incentive mechanisms, our Company systematically enhances its independent to
innovation capabilities. million
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Key Honors Key Performance
Authoritative certification of R&D platform As of the end of the Reporting Period
The"Key Laboratory of Refrigeration Compressor Technology Research and Application"passed performance
evaluation with the outstanding result of a municipal Class A rating, becoming a strong engine for cutting-edge
technology R&D.
Our Company had obtained a total Including
Joint application for major awards
of
The project Key Technologies and Industrialization of New-generation Green Refrigerant Compressors, jointly
submitted with Zhejiang University of Technology, won the Special Prize of the Science and Technology Progress
Award of the China General Chamber of Commerce. The project Key Technologies, Core Equipment and Large-scale
Application of Hydrocarbon Green Refrigerant Compressors won the First Prize of the Science and Technology Progress
Award of the China National Light Industry Council, among other high-level scientific and technological awards.
Measures Implemented for Intellectual Property Protection in 2025
Key support from provincial funds
The project New Production Line for 6 Million VM Series Variable-frequency Compressors was successfully shortlisted Conduct regular internal training on intellectual property topics such as patent application and patent search to
for the proposed funding list of the 2025 provincial special funds for the integration of advanced manufacturing and enhance IP protection awareness among all employees.
modern services.
Implement protection measures covering patents, trademarks, copyrights, and trade secrets. Establish a dedicated
New breakthrough in national-level evaluation
intellectual property office staffed with designated personnel responsible for IP management. During product
development, conduct timely collection and analysis of competitors' patents to prevent infringement of others'
The Intelligent Upgrading and Transformation Project for Compressor Manufacturing Equipment successfully passed intellectual property rights.
national-level evaluation and received special funding support. Make reasonable use of litigation to resolve intellectual property disputes, establish a strong corporate image in IP
protection, and fully safeguard our Company's interests.
Carry out global trademark protection and registration layout, and complete international trademark registration and
renewal. We have registered trademarks in 63 countries, including Germany, Spain, France, and the United States. As
of the end of 2025, our Company held 53 registered trademarks.
List of Science and Technology Projects and Cooperative Projects Undertaken at Various Levels in 2025
Our Company was included in the key enterprise list of the "Longteng Action", a nationwide intellectual property
Cooperative
protection campaign conducted by China Customs, to safeguard the export of our Company's proprietary branded
Project Name Project Source Start Date End Date
Entity
products against infringement.
R&D of High-performance
Industry-Academia-
Motors and Electronic Control April 1, 2025 March 31, 2028 Zhejiang University
Research Collaboration
Technologies
R&D of Key Technologies
Industry-Academia- September 25, Zhejiang University
for Intelligent Life Testing of September 24, 2026
Research Collaboration 2025 of Technology
Refrigeration Compressors Intelligent Transformation
Changhong Huayi follows national standards such as the General Principles for Intelligent Factory Evaluation (GB/T 46734-2025)
and the Intelligent Manufacturing Capability Maturity Model issued by the Ministry of Industry and Information Technology.
Protection of Intellectual Property Rights Through advancements in production manufacturing, intelligent inspection, Supply Chain Management, video surveillance, and
warehousing and logistics, our Company has promoted the implementation of AI + 5G application scenarios. These include visual
tracking welding, AI-based defect detection for stators and casings, and AGV + intelligent distribution systems. These initiatives
During the Reporting Period, Changhong Huayi introduced and implemented GB/T 29490-2023 Enterprise Intellectual Property have enhanced Changhong Huayi's intelligent manufacturing capabilities. According to the Intelligent Manufacturing Capability
Management Specification. Guided by the management principles of "innovation-driven development, enhancement of Maturity Model, our Company has reached Level 3 maturity.
competitive advantages, lawful protection, and value creation", our Company improved its corresponding working mechanisms
and institutional frameworks.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Key Honors
Digital Transformation
Advanced-level Intelligent Manufacturing Advanced-level Intelligent Manufacturing Following the "One Huayi" digital development strategy, Changhong Huayi has established a digital system featuring standardized
Factory of Jiangxi Province Factory of Hubei Province processes, model replication, business collaboration, and data interconnectivity. Through a phased implementation strategy
combining benchmark demonstrations and step-by-step promotion, our Company is building a Digital Transformation
Changhong Huayi Huayi Jingzhou
pathway that enables collaborative and win-win outcomes across business functions including sales, R&D, procurement, and
manufacturing.
Connected Factory inspection of stator appearance) In June 2025, Jiaxipera completed the optimization and iteration of its digital V2.0 system, and in the second half of the year, our
Company completed the replication and promotion of digitalization across the Changhong Huayi Group.
Jiaxipera Jiaxipera
First batch of typical cases of AI- Zhejiang Province Benchmark Enterprise
empowered manufacturing in Zhejiang for AI Applications
Province
Jiaxipera Jiaxipera New Energy Vehicle Compressor Production Line Achieves Dual Improvement in Efficiency and
Quality
In 2025, a modular, automated, digitalized, and intelligent production line for New Energy Vehicle compressors was
Champion"
completed and put into operation. The production line mainly manufactures high-quality, high-efficiency, and low-cost
Jiaxipera next-generation high-performance electric compressors, significantly improving assembly efficiency.
A large number of robots are used in assembly processes to achieve automated assembly, automated appearance
inspection, and automated testing of operating conditions, frequency spectrum, and noise vibration. The production
line integrates visual and infrared sensors and adopts advanced process technologies such as servo presses and curve
Our Company achieved new breakthroughs in fully unmanned production lines by establishing a
案例
monitoring. Product measurement accuracy reaches 1 μm, ensuring the stability of compressor performance and quality.
micron-level (?-level) unmanned crankcase machining production line. Through Digital Transformation, the MES system enables full traceability of key production process statuses and test
parameters throughout the compressor manufacturing process.
A quality monitoring system based on AI agents was implemented. At the automatic feeding stage, image recognition
technology supported by model training is used to accurately verify material positioning and appearance, thereby
eliminating deviation risks at the initial stage of processing. During production, robots automatically conduct inspections at
preset frequencies to ensure compliance with standards. Meanwhile, in the tooling stage, real-time data are automatically
monitored based on model training, and abnormal conditions trigger automatic alerts, forming a three-layer quality
control system of "initial verification — process monitoring — standardized inspection".
Construction of ?-level Unmanned Crankcase Machining Production Line New Energy Vehicle Compressor Production Line
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Data Security Management Quality Excellence and Value Chain Synergy
To strengthen Information Security management, standardize data security operations, and enhance data protection capabilities,
Changhong Huayi has established a full-process, multi-level management framework.
Ensuring Product Quality
Organizational Structure for Information
Security and Privacy Protection In 2025, Changhong Huayi remained committed to a user-centric approach and established a comprehensive product quality
assurance system featuring system-driven governance, full-process control, digital empowerment, and supply chain collaboration.
Group Leader Deputy Group Leader Group Members Quality accountability was embedded throughout the entire product lifecycle, including R&D, procurement, manufacturing,
inspection, and after-sales service. Our Company continuously improved product accessibility, effectively safeguarded consumer
Responsible for reviewing Responsible for overall planning of Responsible for macro-level rights and interests, and promoted the integrated advancement of product quality and sustainable development.
and approving overall plans network and information security decision-making and command
for network and information emergency infrastructure. of emergenc y responses to
security emergency response network and information
and reporting network and security incidents.
information security incidents.
Key Performance
As of the end of the Reporting Period
Annual quality improvement The engineering outgoing The final product market
Information Security Regulations (Partial List) projects were completed defect rate decreased by feedback rate decreased by
closure100%
Personal Information Compliance
Management Regulations
Anti-virus Management System
Network Security Management Operational Manual for Network Information
Regulations Security Monitoring and Management
Emergency Response Plan for Personal
Information Security Incidents
Each year, our Company engages an authoritative third-party certification body to conduct a systematic audit of the
operation of its quality management system, so as to ensure compliant and lawful operation of the quality system.
Measures Implemented for Data Security Management in 2025
Promote software copyright compliance by requiring all
employees to sign commitments on the use of licensed
software, conducting training on licensed software
compliance, and establishing a dedicated leadership group,
thereby strengthening awareness and management of
software copyright compliance.
Conduct network and information security training to
enhance awareness among all employees and strengthen
management of network information security.
Participate in industrial network and data security training
organized by provincial industry and information technology Quality Management System Certification Certificate
authorities.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Strategy and Systems Development of Quality Culture
Our Company adopts the quality policy that "Customer satisfaction is our purpose, and zero defects is our goal". With service, Our Company continuously strengthened the development of its quality culture and promoted enhanced quality awareness
empowerment, and professionalism as its positioning, and with a focus on strategy, process, users, and digital intelligence as main among all employees. Throughout the year, it carried out learning and training activities centered on quality management systems,
initiatives our Company strives to achieve the best quality performance across its three platforms: small compressors, commercial conducted a quality management maturity survey among middle management personnel, collected 150 questionnaires, assessed
compressors, and variable-frequency compressors. the quality management maturity of the Huayi system, and identified areas for improvement. It also organized quality month
activities to foster an atmosphere of "quality first, with full participation by all employees". At the same time, our Company further
strengthened the quality talent pool, improved the Huayi quality management network, and carried out professional qualification
Establish a comprehensive quality certification in quality-related disciplines. A total of 196 employees successfully passed the certification. Through professional
Quality Vision management system covering all employees and all processes. training and project practice, our Company comprehensively enhanced the professional capabilities of quality personnel.
Quality Achieve top quality across three platforms: small compressors,
Objectives commercial compressors, and variable-frequency compressors
strategic digital Special Training on APQP/PPAP Quality Tools
Work Pathways a focus on users capabilities processes
priorities intelligence
Manufacturing Quality –
Procurement Quality – Market Quality – Big Data To address the core issue of insufficient capability in the use of quality tools, Changhong Huayi organized special
R&D Quality – APQP / DFMEA Equipment Upgrades / Error-
Key Pillars Supplier Quality Admission Analysis / Application training sessions on APQP (Advanced Product Quality Planning) and PPAP (Production Part Approval Process) for key
/ PPAP / QFD proofing / Organization-wide
and Joint Improvement Scenario Integration
Continuous Improvement departmental personnel, achieving full coverage of core staff across all modules.
Initiative 1: Integration of
Through SWOT analysis, our Company identified weak links in the team's application of quality tools and set the
Initiative 1: Product/
Initiative 1: Supplier Intelligent Manufacturing and Initiative 1: Establishment
Component Standard
objective of "enhancing professional capabilities in full-process quality management and control". The training content
Technical Empowerment Quality of Customer Quality Data
Upgrades
Initiative 2: Efficient Initiative 2: Promotion Platform
Business was closely integrated with practical work, including system building, inspection and control, and after-sales support.
Initiative 2: Promotion
Initiatives Coordination for Quality of Organization-wide Initiative 2: Failure Mode The pass rate for the core team's application of APQP/PPAP tools increased from 65% before the training to 98%. In the
and Application of Quality
Improvement Continuous Improvement Analysis and Improvement
Tools subsequent advancement of three new product projects, the standardized application of APQP tools enabled the early
Culture
identification of 12 potential quality risks, with a 100% rate of risk resolution at the preliminary stage.
Technical Support: Digital Quality Platform (PLM/MES/
Strengthening System Support: ISO 9001 Upgrade + IATF 16949
QMS Integration)
Foundational
Capabilities Process Support: Deep Integration of Lean Production and Quality Improvement (TPM/QC/Six Sigma) to systematically
Initiatives eliminate waste, reduce variation, and enhance process capability
Quality Strategy
Product Quality Improvement
Quality Risk Management Measures
Full Lifecycle Quality Management Process
• Implement DFMEA and reliability testing to
prevent risks at the design source.
• R&D and Design
• Establish a "Top 100 Quality Case Database"
• Supply Chain and Procurement
to drive the root-cause resolution of historical
issues.
• Intelligent Manufacturing and Production
• Carr y out supplier grading and dynamic • Product Testing and Validation
management to strengthen supply chain risk
management and control. • Sales and Service
• Promote a quality big data early warning • Recycling and Improvement
Quality System Training
system to enable trend alerts and proactive
intervention.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Excellent Customer Service Protection of Customer Privacy
Changhong Huayi adheres to the philosophy of "customer oriented" and has established a full-process customer rights Our Company attaches great importance to Customer Privacy Protection and has
In 2025
and interests protection system. Through multi-dimensional efforts including demand response, quality assurance, service established the User File Management System , which specifically provides for the
protection of customers' personal information. The system clearly defines the scope
optimization, and feedback closed-loop management, our Company has built a global rapid response mechanism to ensure No customer data
that customer complaints are transmitted to the responsible departments at the earliest possible time. It has also implemented of customers' personal information (such as contact details, transaction records, and
leakage incidents
a full closed-loop process of "complaint-analysis-improvement-verification-feedback" and is committed to enhancing customer equipment information), and sets out full-process management requirements for
satisfaction. information collection (following the principles of minimum necessity and informed
consent), storage (encrypted storage and access segregation), use (limited to agreed
zero serious
purposes), sharing (subject to approval and agreement execution), and destruction. It
case
Key Performance also establishes mechanisms to protect customers' rights to access, correct, and delete
their information.
In 2025
Product Recall
the timely response rate to Customer satisfaction
customer complaints reached scored
In 2025
Our Company has established a sound product recall management system, with
"prevention first, rapid response, precise traceability, and accountability closed loop"
% points
as its core principles. Leveraging its full-process quality management and control
system, digital monitoring tools, and case review mechanisms, our Company identifies No product
quality risks in advance, promotes timely rectification, and effectively prevents
Rapid Response and Efficient Closed-loop Management to Fully Safeguard Customer Rights and Interests
potential product quality hazards. No product recall incidents occurred throughout recall incidents
interests.
Upon the occurrence of a customer complaint, Huayi Jingzhou immediately activated its emergency response mechanism
and promptly organized core personnel from the quality and technical teams to travel to the customer site. Through
efficient coordination and precise investigation, it directly addressed customer concerns and resolved on-site issues in a
Special Training on Customer Service
timely manner. After multiple rounds of analysis, verification, and optimization, the team produced an approximately 90-
page 8D fault analysis report, comprehensively covering the entire process, including problem description, root cause
identification, interim containment measures, permanent corrective actions, effectiveness verification, and recurrence
prevention plans.
From the occurrence of the customer complaint to the completion of the corrective-action closed loop, every step was Customer Service Standards and Complaint Handling Closed-loop Training Program
consistently data-driven and customer-oriented. Progress updates were communicated to the customer throughout the
process to ensure that corrective measures were scientific and effective, thereby effectively safeguarding customer rights
In 2025, our Company implemented
and interests and the long-term partnership
a dedicated training and assessment
program for its customer service system,
covering market, after-sales, and technical
support teams in full. The training focused
on four modules: customer communication
skills, complaint classification and handling
procedures, rapid response mechanisms,
and on-site problem diagnosis. Real fault
cases were introduced for scenario-based
simulation exercises to strengthen the
capability of frontline personnel in handling
complex customer issues.
Real Fault Scenario Simulation Exercises
Meeting on Customer Complaint Response
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Responsible Marketing Supplier Management
Changhong Huayi places strong emphasis on responsible marketing. Guided by the core principles of "people-oriented approach, In 2025, the management system followed the principles of "fairness, impartiality, openness and integrity; risk prevention and
integrity-driven operations, technology leadership, and global competitiveness", our Company strictly complies with key internal control; systematic and comprehensive management; cost-effectiveness; and traceability", covering the entire supplier lifecycle,
policies, including the Sales Management System, Market Research Management System, Brand Management System, and Product including sourcing, admission, evaluation, improvement, and exit. The responsibilities of the material procurement department,
Export Sales Management System. quality management department, technical department, and other relevant functions were clearly defined. A supplier database
comprising four categories—"qualified", "registered", "potential", and "cooperation terminated"—was established. Suppliers were
Management Measures
also classified into four grades, A, B, C, and D, based on the importance of materials, and tiered management and control measures
were implemented to ensure precise and efficient allocation of resources.
Full-process Review Evidence Retention Clear Disclosure
Supplier ESG Management
All externally released marketing materials— All claims relating to product Product usage limitations
including promotional texts, advertisements, performance, energy efficiency, and other relevant condi-
brochures, videos, and social media content— and data must be supported by tions must be clearly and In 2025, through the addition and revision of internal systems and policies, our Company further strengthened
must undergo a three-tier review process: authoritative testing reports or prominently disclosed to environmental compliance, social responsibility, and governance standards.
drafting by the business department, preliminary internal experimental data, which customers.
review by the General Office, and final review by are archived for verification.
the Legal and Compliance Department. Enhance control over the supplier roster by incorporating risk-related procurement suppliers and suppliers currently in
the batch trial production stage into the filing and registration management system.
Introduce environmental compliance and social responsibility reviews, expressly requiring on-site audits to verify
Our Company continuously strengthens communication and cooperation with customers. By leveraging high-quality products suppliers' ESG performance, including waste disposal, wastewater monitoring, compliance of environmental impact
and excellent services, it has earned strong trust and recognition from customers, receiving widespread positive feedback and assessment reports, and procurement control over conflict minerals (including tin, tantalum, tungsten, and gold).
numerous awards. In 2025, our Company was honored with multiple recognitions from key strategic customers, including the
"2025 Supplier Award" from Electrolux Group, the "2025 Global Excellent Supplier Award" from Bosch Group, the "2025 Global Expand the scope of application by requiring operational procurement service suppliers with an annual procurement
Strategic Cooperation Award" at Haier Overseas Supplier Conference, the "2025 Strategic Partner Award" from Haier Smart Home, budget exceeding RMB 500,000 to carry out work with reference to the Supplier Management Measures and to meet
the "2025 Strategic Partner Award" from Hisense, the "2025 Outstanding Strategic Supplier Award" from TCL, the "Best Partner ESG management requirements simultaneously.
Award" from Xiaomi, the "Ecosystem Co-construction Award" from SAIC-GM-Wuling, and the "2025 Excellent Quality Award" from
Hunan Geely Automobile.
Customer Awards Received in 2025
Key ESG Measures in Supplier Management
Issuing Organization Award Issuing Organization Award
Environment Social Governance
Global Strategic Excellent Quality Award,
Haier Xiaomi
Cooperation Award Best Partner
Strategic Partner 2025 Skyworth Global Supplier Suppliers are required to comply Our Company signs a Safety Agreement and a Our Company signs an Integrity
Haier Smart Home Excellence in Quality with environmental protection laws Code of Social Responsibility with suppliers. Agreement and a Confidentiality
Award Conference for Refrigeration,
Award and regulations, provide third-party Social responsibility clauses have also been Agreement with suppliers to
Washing and Air Conditioning
Global Excellent hazardous substance monitoring added to supplier audits to strengthen regulate cooperation conduct,
Bosch Group (BOSCH)
Supplier Outstanding Strategic reports, and are prohibited from supply chain oversight, screen procurement strictly prohibit commercial
Zhongke Meiling
Cooperation Supplier making unauthorized changes in high-risk regions, eliminate the use of bribery and information leakage,
Strategic Partner
Hisense Group to raw material composition and conflict minerals, and ensure that suppliers and improve supplier compliance
Award
Guangdong Xingxing Outstanding Supplier production processes, thereby comply with corporate social responsibility records.
Outstanding Strategic promoting the implementation of requirements.
TCL Industries Holdings Co., Ltd. Outstanding
Supplier Xinbao Electrical Appliance green procurement.
Contribution Award
Imbera Best Supplier Ecosystem Co-
SAIC-GM-Wuling
construction Award
Electrolux Group Annual Supplier Award
Hunan Geely Automobile Excellent Quality Award
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Transparent Procurement Supplier Training
Changhong Huayi strictly follows the Supplier Management Measures, the Materials Procurement Management Measures , and Changhong Huayi held a supplier summit under the core theme of "Digital and Intelligent Integration
other relevant regulations in managing anti-corruption and anti-bribery matters relating to suppliers. Integrity control requirements Strengthens the Chain, Empowering the Ecosystem for Shared Prosperity".
are comprehensively embedded throughout the full supplier management process, including admission, cooperation, evaluation,
and exit, thereby establishing a clean cooperation management model with clearly defined responsibilities and a closed-loop Against the backdrop of profound adjustments in the global industrial
supervision mechanism. landscape and the wave of the digital economy, supply chain
Our Company has strengthened integrity constraints by making the execution of an Integrity Agreement a core prerequisite both at collaboration has become a core issue for high-quality development.
the supplier admission stage and upon annual contract signing. This agreement has the same legal effect as technical agreements Changhong Huayi will reinforce the foundation for high-quality
and quality agreements. The agreement expressly stipulates that suppliers shall not seek to influence our relevant personnel development by digitally and intelligently restructuring the entire value
through improper benefit transfer, commercial bribery, or other improper means. Any supplier found to be in breach of the chain, strengthen supply chain resilience through the dual drivers
agreement will have its status as a qualified supplier revoked directly. of strategic collaboration and technological innovation, and jointly
build an industrial ecosystem through coordinated efforts in social
responsibility, co-creation and sharing, and green manufacturing. As a
chain-leading enterprise in the industrial chain, Changhong Huayi will
uphold the philosophy of openness and win-win cooperation, deepen
Measures Implemented for Transparent Procurement in 2025
collaboration with all partners in areas such as strategic planning,
intelligent manufacturing, technological breakthroughs, and global
Our Company strictly implemented the Code of Conduct market expansion, and work together to build a benchmark industrial 2026 Annual Supplier Summit
for Procurement Personnel . All procurement personnel are ecosystem that is resilient to risk, highly robust, and jointly prosperous,
required to sign a Letter of Commitment to Integrity and Self- thereby injecting strong momentum into promoting high-quality
discipline upon onboarding, expressly undertaking not to industry development and building a new global industrial chain order.
accept cash gifts, securities, or any other form of property
from suppliers; not to accept banquets, travel, or any similar
arrangements; to eliminate any improper exchange of
benefits; and strictly prohibit the use of their positions for
personal gain or the disclosure of trade secrets.
On November 8, 2025, Changhong Huayi held its 2026 Annual
Supplier Summit in Jiujiang, Jiangxi Province. At the summit,
Changhong Huayi and 10 supplier representatives jointly Signing of the Initiative for Building a Clean
launched an Initiative for Building a Clean and Upright Supply and Upright Supply Chain
Chain, advocating honest business conduct, fair competition,
and transparent transactions, and extending integrity co-
building from our Company to upstream and downstream
partners across the supply chain.
Green Supply Chain Training Hazardous Substance Training
Digital Development of the Intelligent Supply Chain
Supply Chain Security
To further standardize procurement processes,
strengthen supervision over the procurement
Changhong Huayi advanced its supply chain security efforts by establishing a sound safety management system, revising relevant process, and improve communication efficiency
systems and policies, and clarifying the responsibilities of all departments. It strengthened risk identification and assessment, with suppliers, our Company continued to
with a focus on investigating key risk points such as supplier qualifications and paid-in capital, and improved its supervision and enhance and upgrade its ISRM intelligent supply
response mechanisms by incorporating paid-in capital verification into the core supplier admission procedures. Our Company chain system, including six major modules:
carried out a comprehensive review of suppliers' paid-in capital through means such as the National Enterprise Credit Information demand management, supplier management,
Publicity System and bank transaction verification. If a supplier was found to have zero paid-in capital, indicating risks relating pricing management, contract management,
to contract performance and capital chain disruption, our Company immediately verified the relevant circumstances, issued a order management, and settlement management.
rectification notice, and required the supplier to supplement its paid-in capital and provide supporting evidence, thereby reducing It has basically achieved online management of
supplier performance risk. Our Company continuously improves its supplier admission mechanism and has normalized paid-in the full procurement process, effectively improving
capital verification to prevent supplier capital risks at the source and reinforce the security line of defense for the supply chain. procurement efficiency and transparency.
Interface of the Intelligent Supply Chain System Modules
长虹华意压缩机股份有限公司 2025 Environmental, Social and Governance (ESG) Report
Employee Development and Protection Employee Policy Management
of Rights and Interests During the reporting period, Changhong Huayi revised and improved relevant policies and systems, including the Recruitment
Management Measures, Benefits and Subsidies Management Measures, Attendance Management Measures, Job Grade
Changhong Huayi is committed to establishing a fair and transparent employment mechanism to ensure that Management Measures, Compensation Management Measures, Employee Leave Management Measures, and Employee Code of
employees' rights and interests are fully protected. Through a sound benefits system, career development support, and Conduct Management System.
innovation incentives, our Company provides employees with broad room for growth while fostering a positive and
progressive working environment, thereby enhancing employees' sense of well-being and belonging.
• Working Hours Arrangement: Our Company implements • The entitlement to leave is a basic right of employees.
a five-day workweek and an eight-hour workday, with By establishing and improving the leave request
Working Hours System
Saturday and Sunday as regular rest days. and attendance management mechanisms, our
Equal Employment
Leave System
• For certain special positions, differentiated arrange- Company ensures the effective administration and
ments such as flexible working hours or different implementation of leave arrangements.
Changhong Huayi attaches great importance to the protection of employees' rights and interests and strictly complies with the working hour systems may be adopted based on job
• Our Company provides paid annual leave, family
Labor Law of the People's Republic of China, the Law of the People's Republic of China on the Protection of Minors, the Provisions characteristics and employees' actual circumstances.
reunion leave, marriage leave, bereavement leave,
on the Prohibition of Child Labor , and other applicable laws and regulations, ensuring that the lawful rights and interests of every • Where extended working hours or holiday overtime maternity leave, work-related injury leave, sick
employee are fully respected and protected. Our Company strictly prohibits illegal practices such as child labor and forced labor, is required due to production arrangements, the leave, and personal leave. Employees may apply
firmly opposes any form of discrimination and harassment, and is committed to creating a fair and equitable working environment. relevant notice issued by our Company or the for leave in accordance with the applicable policies
Changhong Huayi upholds mindset of diversity, equality, and inclusion, and eliminates discrimination arising from differences in production management department shall prevail. and enjoy the corresponding leave benefits.
gender, age, educational background, ethnicity, religious belief, or physical condition, ensuring that all employees enjoy equal
employment opportunities and career development prospects. At the same time, our Company pays attention to the employment
of persons with disabilities and ensures workplace convenience and equal benefits for employees with disabilities.
Employee Recruitment
Indicator Unit 2023 2024 2025 Changhong Huayi adheres to a people-oriented approach and the strategy of strengthening the enterprise through talent, and
has established a diversified recruitment system. Through livestream recruitment, our Company recruits frontline general workers
Proportion Of Employees in the labor market to consolidate its manufacturing foundation. Through campus recruitment programs, it attracts outstanding
% 0.36 0.26 0.36
With Disabilities young graduates. Through the implementation of the management trainee program, it cultivates reserve talent for management
and technical positions. Our Company remains committed to attracting talent through multiple channels, developing talent
Number Of Employees through multiple dimensions, and enabling talent growth through multiple pathways, so that all types of talent can fully utilize
Persons 28 19 27
With Disabilities their strengths and realize their potential, thereby driving our high-quality development through talent advantages.
Proportion Of Ethnic
Talent Attraction Models
% 1.73 2.82 3.05
Minority Employees
Implementation of a "One
Person, One Policy" Talent
Number Of Ethnic Minority
Persons 135 205 227 Offline Talent Recruitment Online Talent Recruitment
Attraction Approach
Employees
Our Company actively maintains Our Company leverages internet platforms Through industry forums, headhunters,
communication and coordination to strengthen cooperation with professional and high-level talent exchange events,
with universities, provincial and recruitment websites, such as Zhaopin our Company implements a "one
municipal talent markets, and and the Changhong recruitment platform, person, one policy" approach for
intermediary agencies, strengthens increases online publicity and information urgently needed talent and introduces
offline recruitment engagement, release, and actively recruits talent. talent critical to our development.
and extensively recruits talent.
Introduction of Outstanding "Talent Enclave" Recruitment Management Trainee Model
Overseas Talent
Our Company introduces overseas Through project cooperation, part-time This model enhances the company's
talent through multiple channels, engagement, consultancy arrangements, attractiveness to talent with the greatest
including overseas subsidiaries, and other means, our Company cooperates leadership potential and helps develop
overseas customers, and industry with we l l - kno wn highe r e ducatio n them into outstanding leadership talent,
conferences. institutions across China to share talent enabling the organization to maintain
resources and attract high-end talent. long-term competitive advantages.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Employee Promotion
In 2025, Changhong Huayi systematically advanced the implementation of its job grade management system, establishing a well-
structured and dynamically evolving career advancement pathway. We optimized and improved the Job Grade Management
Measures , achieving initial results in scientific management dimensions such as dynamic job grade adjustment and precise salary
band matching, and preliminarily forming a sound mechanism under which the capable are promoted and the underperforming
are reassigned.
Career Level (F3A) ...
Operations &
Procurement G12
Standard Level
Manager
(F3B)
Special Talent Recruitment Activities Livestream Recruitment (F4) ...
Management Foundation Level
(F3C)
Operations &
...
Employee Training R&D
Strategic Operations & Procurement
Career Level (F2A)
Supervisor
Career Development Pathways
Development Procurement
(F3) ...
Standard Level
Engineering and Operation Strategic
(F2B)
During the reporting period, our Company comprehensively carried out training programs aimed at lean, automated, and
Technical Management Procurement
intelligent capability enhancement. By continuously implementing practical and effective training plans, our Company improves Operations & Foundation Level ...
the skill levels and overall capabilities of all categories of employees, thereby promoting the high-quality achievement of the goals
Procurement Procurement (F2C)
Marketing Supply Chain Organizer
set out in its 14th Five-Year Strategic Plan. Management ...
Our Company has established a relatively sound internal and external employee training platform and continues to build a higher- (F2)
Career Level (F1A)
level internal training system based on job responsibilities and competency requirements. Our Company has formulated a detailed Intelligent ... ... ...
Operations &
Standard Level
Procurement
annual training plan, covering general knowledge, management, R&D, engineering and technical expertise, marketing, production,
(F1B)
and other areas. Assistant (F1) G3
Our Company primarily adopts centralized internal classroom instruction and on-site operational training, supplemented by Production Foundation Level
(F1C) ...
external instructors and sending employees to professional training institutions. At the same time, it conducts diversified online
training on its online learning platform. Our Company has established tuition subsidies for employees pursuing in-service academic
Job Category Job Sequence Position Job Grade Code Career Level Job Band
qualification enhancement training. It encourages employees to make use of their spare time during regular employment to
participate in various forms of adult higher education and academic training, so as to enhance their overall capabilities.
Job Title Job Grade
Career Development Pathways
Key Training Content in 2025
Job Grade
Job Category
Training to enhance the professional capabilities and 1 2 3 4 5 6 7
comprehensive management capabilities of middle
Middle Middle
management teams, "Group Eagle Program" talent, and team
Management (M)
Grassroots Management Management
leaders. Cadre Deputy Principal
Positions Positions
Professional training for technical personnel in R&D, lean
engineering advancement, maintenance, procurement,
R&D (D)
Senior Authoritative Chief
Assistant Organizer Supervisor Expert
finance, and other fields; as well as growth training for Expert Expert Scientist
employees in specialized skill positions.
Engineering and Senior Authoritative Chief
Technical (T)
Spark Training for University Graduates Assistant Organizer Supervisor Expert
Pre-job training for new employees at the Group level (Spark Expert Expert Scientist
Training), Company level, and department (workshop/team)
Functional (F)
Higher level Senior
level; and skill grade enhancement training for key and Assistant Organizer Supervisor Manager
Manager Manager
critical frontline positions.
Marketing (S)
Higher level Senior
Assistant Organizer Supervisor Manager
Training on production safety and fire safety for employees, Manager Manager
and professional training for quality management personnel.
Level 1 Level 2 Level 3 Level 3
Skilled (PA)
Level 1 Level 2 Chief
Training for administrative management professionals, Skilled Skilled Skilled Skilled
Technician Technician Technician
Production
Worker Worker Worker Technician
marketing talent, and international talent, among others,
(P)
to comprehensively improve the job competency of all Operations
and Support
Level 1 Level 2 Level 3
categories of employees, thereby ensuring production safety, Comprehensive Management Capability Training
(PB)
Operator Operator Operator
high product quality, and a high standard of management.
Employee Job Rank and Grade Table
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
• Employees participate in open competition for positions, with Measures Taken in 2025 for Contractor Safety Management
a success rate of 99.3%. After successful appointment through • Each year, our Company organizes
competition, employees are organized to sign the Position the selection, cultivation, and
Commitment Letter. appointment of personnel for its Changhong Huayi implements classified management
Open Competition for All Positions
reserve talent pool, so as to develop of different external stakeholders in accordance with
Reserve Talent Development
• Team leaders are appointed through open competition. In order
and reserve a team of high-quality, the Management System for Safety and Environmental
to strengthen team management, stimulate the vitality of team
professional, and younger reserve Protection of Relevant Parties . For contractors, lessees,
development, and establish and improve the mechanism for
cadres for our Company. In line with and similar parties, our Company conducts unified
identifying and cultivating grassroots management talent, our
the talent selection principles of the coordination and management of work safety matters,
Company insists on holding an annual open competition for team
"Category A Pool" and "Category B including: execution of safety agreements; safety
leader positions, thereby promoting the overall improvement of its
Pool", our Company implemented training (notification); formulation of work plans before
management standards.
the Group Eagle Talent Program and construction and maintenance projects; technical
• Leaders of sectors are appointed through open competition. Our established a four-tier talent pool briefings; and, during operations, safety supervision
Company organizes an annual open competition for all grassroots comprising "Young Rising Stars"- and inspection by the "three parties" (the responsible
cadres and, in accordance with the principles of merit-based "Young Backbone Talents"- "Reserve functional unit, the territorial unit, and the supervising
competition and adjustment of the lowest-ranked performers, Talents"- "Management Elites". unit). For hazardous operations, strict approval procedures
promotes both upward and downward mobility of cadres in an are required, with designated personnel assigned for on-
orderly manner, including cadre rotation, demotion, and removal. Safety Training for External Construction Units
site supervision to ensure operational safety.
Before Commencement of Work
Safety and Employee Health
With the safety production accountability system for all employees at its core, Changhong Huayi clearly defines the safety
production responsibilities of management personnel at all levels and of each position, ensuring that the requirements of Training and Drills
"three management responsibilities, all of which must include safety" and "shared Party-government responsibility, with dual
responsibilities for each post" are effectively implemented. Based on national laws and regulations such as the Work Safety Law
of the People's Republic of China and applicable industry standards, and focusing on key tasks such as safety risk management, New employees, temporary workers, interns, and similar personnel receive "three-level work safety education",
hazard identification and rectification, and prevention and control of occupational disease hazards, our Company has established while timely safety training and education are also provided to personnel involved in the "four new" scenarios
and continuously improved a safety management system tailored to its actual operations. It has also continuously refined the Work and those transferred to new positions.
Safety Assessment System , further detailed management weighting, and strictly implemented safety performance assessments. Throughout the year, our Company continuously carried out work safety publicity, education, and training,
At the same time, our Company newly formulated the Reward System for Reporting Safety Hazards , encouraging employees to continuously enhanced employees' awareness of safe production, ensured that those responsible for
proactively report safety hazards, fostering a positive atmosphere in which "everyone is a safety officer", and promoting the timely implementing safe operational processes possessed the requisite capabilities, and promoted employees'
identification and rectification of hazards. voluntary compliance with our work safety rules and regulations.
All production units consistently implemented the "two one-minute" pre-shift safety education program,
Safety Management Organization effectively enhancing employees' safety awareness. In August 2025, the Jingdezhen Plant organized safety
production knowledge training for all employees, with 1,928 participants. It also organized a post-training
examination, with a 100% pass rate.
Our Safety Committee is the organizational leadership body for work safety. It is composed of Company leaders and heads
of relevant departments, with the General Manager serving as Director of the Safety Committee. The routine work of the
Company's Safety Committee is organized and implemented by the Safety and Environmental Protection Department,
In 2025
and all units have established their own work safety management networks. Meanwhile, our Company established a
headquarters platform for safety, environmental protection, and occupational health to coordinate all-dimensional Our Company conducted And occupational health With a cumulative total
management of safety and occupational health across Changhong Huayi. This platform takes the lead in formulating
new employee training and safety training of
annual work plans and targets, advancing the implementation of our safety and occupational health affairs, and ensuring
completion of the various safety tasks and targets assigned by the Group and the Company.
times times participants
holding completion
certificates for work
management personnel are certified for In accordance with the emergency response plan for production safety accidents, our Company organized a
safety knowledge &
total of 46 emergency drills of various kinds, involving 4,021 participant attendances. Each year, our Company
management capability p e r s o n n e l h o l d s a fet y special equipment operation and routinely organizes a series of activities such as "Work Safety Month" and the "Ankang Cup" competition, further
training and occupational
management certificates special operations strengthening safety awareness among all employees, reinforcing work safety responsibilities, and effectively
health management
improving the company's safety management level.
training
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
In accordance with the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases and the
Occupational Health and Occupational Disease Prevention and Control Management System , our Company established an
occupational health management leading group responsible for the company's daily occupational health management.
Our Company signed agreements with qualified third-party institutions to complete
environmental inspection reports for occupational workplaces.
For employees working in positions exposed to occupational disease hazard factors such as dust, chemical toxicants,
and noise, our Company entrusts institutions qualified to conduct occupational health examinations to carry out
targeted occupational health check-ups, including chest X-rays, pulmonary function tests, hearing tests, blood
routine tests, and liver function tests.
Employees in positions exposed to occupational hazards undergo one special medical examination each year. Newly
hired employees in hazard-exposed positions must complete pre-employment medical examinations before taking
up their posts, and may only assume their positions upon passing such examinations. Employees leaving or retiring
from hazard-exposed positions must also complete exit medical examinations.
Establishment and Management of Occupational Health Files
Work Safety Month Activities Occupational health files are maintained on a one-person-one-file basis, including employees' basic information,
pre-employment/in-service/exit occupational health examination reports, and exposure history to occupational
disease hazard factors.
Employee occupational health files are managed by the Safety and Environmental Protection Department, with
designated personnel responsible for administration, using a dual-backup model of "paper files + electronic files".
Electronic files are stored through an encrypted system with graded access permissions to ensure that employees'
private information is not disclosed.
File contents are updated in real time. Where an employee's position changes, a follow-up medical examination is conducted,
or the employee receives health training or medical treatment, relevant materials are archived in a timely manner.
Work Outcomes
Full coverage of medical examinations was achieved for employees exposed to occupational hazards, with a 100%
special examination rate for employees in occupational hazard positions. Suspected occupational disease cases
were identified, diagnosed, and handled at an early stage. Personnel who failed re-examinations were reassigned
away from hazard-exposed positions, and no confirmed occupational disease cases occurred.
Fire Safety Drill Activities Our Company strictly complied with the Technical Specifications for Occupational Health Surveillance , and other
applicable regulations, successfully passed special occupational health inspections by municipal and district health
commissions, and achieved a 100% compliance rate in occupational health management.
Training on Emergency Response Plans for Production Safety Accidents Occupational Health and Safety Management System Certification Certificate
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Occupational Health Management Committed to Public Welfare, Staying True to Its Original Aspiration; Fulfilling Responsibility
with Compassion to Benefit People's Livelihood
Strictly carry out occupational health and occupational hygiene-related management work, and implement workplace
Changhong Huayi has consistently remained committed to public welfare and actively fulfilled its social
safety protection measures and labor protection equipment allocation for employees.
responsibilities. It visited the Jingdezhen Social Welfare Institute on multiple occasions to carry out care and support
Carry out regular annual testing of occupational disease hazard factors and occupational health examinations, activities, delivering holiday greetings and sincere care to the children there, while providing not only material support
ensuring that all required inspections are completed. but also spiritual warmth and encouragement.
During the 23rd National Publicity Week for the Law on the Prevention and Control of Occupational Diseases in 2025,
our Company, together with the municipal center for disease control and prevention, organized a series of special
training and publicity activities for employees.
Visits to the Social Welfare Institute
Attention to Occupational Mental Health Publicity on Occupational Health and Safety Knowledge
In 2025, our Company organized voluntary blood donation activities on multiple occasions. Party members and
cadres took the lead by example, and nearly 100 employees successfully donated blood, with a cumulative donation
volume of 8,000 milliliters, conveying the power of compassion through concrete action.
Compassion and Responsibility,
Empowering Rural Communities
Changhong Huayi actively advances rural revitalization by empowering rural development through targeted assistance
and other means. At the same time, our Company continues to carry out charitable and public welfare activities, giving
back to society with warmth and sharing the fruits of development with the broader community.
Key Performance in 2025
Purchased poverty alleviation products
Total investment in social welfare More than participant and distributed employee benefit Voluntary Blood Donation Activities
supplies such as navel oranges, apples,
exceeded RMB million. and cured duck, with a total value of
attendances were recorded in volunteer Our Company has continuously supported targeted assistance and rural revitalization. Through channels such as the
activities.
RMB
Apples" (ice-sugar core Red Fuji apples), navel oranges, and Majia pomelos to all employees. While enriching
employee benefits, our Company continued to fulfill its corporate social responsibility and contribute to rural
revitalization.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Future Outlook
The journey ahead is long, and only through sustained endeavor can success be achieved; with an unwavering original aspiration, We firmly believe that a sustainable future arises from the symbiosis and shared prosperity of ecosystems.
those who aim far will succeed.
We will continue to improve its corporate governance system and repay market trust through transparent and standardized
Standing at the historic intersection of 2026—the opening year of the 15th Five-Year Plan period—Changhong Huayi looks ahead Information Disclosure, while effectively safeguarding the long-term rights and interests of shareholders. It will remain customer-
to the industrial blueprint for the next five years while remaining steadfast in its responsibilities and values as a corporate citizen oriented, deepen collaborative innovation, and provide more valuable green solutions; work together with supply chain partners in
in relation to the times and the society. We will shoulder new missions with new responsibility, respond to new expectations with coordinated green transformation and promote win-win development across the industrial chain; attach importance to employee
new actions, and embark on a new journey with a renewed outlook, advancing with determination and full momentum along the growth and care, and foster an inclusive, diverse, and progressive corporate culture; and actively engage in public welfare,
course of high-quality development. community co-development, and stable employment promotion, thereby consolidating the social foundation for sustainable
development through practical actions.
We firmly believe that true strength lies not in the expansion of scale, but in reverence for life and stewardship of the planet.
As great tides surge and the stars revolve across the heavens, Changhong Huayi will, with firm conviction and solid steps, continue
Going forward, our Company will continue to uphold its mission of "protecting the Earth's ecological environment and improving to inject an unceasing stream of "Huayi Core Power" into the transformation and upgrading of the refrigeration industry and into
the quality of human life". As a globally leading provider of refrigeration system solutions, Changhong Huayi will enable its the enhancement of people's quality of life on the path toward high efficiency, low-carbon, and green development.
vigorously beating "green heart" to extend into broader industries and deliver sustainable, low-carbon vitality to hundreds of
millions of households, green transportation, and many more application scenarios. We will continue to deepen R&D in core
technologies that are environmentally friendly, lightweight, efficient, low-noise, and highly reliable; promote green design
throughout the full product lifecycle; empower energy conservation and emissions reduction through Intelligent Manufacturing;
and fulfill its corporate social responsibility through concrete actions, making a solemn commitment to the environment, the
future, and future generations.
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Appendix Greenhouse Gas Emissions Reduction Tons of CO2 equivalent 3,169.50 2,495.71 1,283.30
Greenhouse Gas Emissions Reduction (Scope 1) Tons of CO2 equivalent 493.49 1,841.33 1,096.28
Key Performance Greenhouse Gas Emissions Reduction (Scope 2) Tons of CO2 equivalent 2,665.92 654.38 187.02
Hazardous Waste Generated Tons 1,542.26 1,749.845 1,911.35
Indicator Unit 2023 2024 2025
Hazardous Waste Emission Intensity Tons/RMB 10,000 0.001462 0.001357 0.001622
Economic Performance Total Non-hazardous Waste Generated Tons 39,050.98 49,207.14 50,645.63
Total Assets RMB 100 million 139.03 135.92 148.62 Non-hazardous Waste Generated per RMB Million of
Tons 3.02 4.11 4.29
Revenue
Operating Revenue RMB 100 million 128.89 119.67 117.81
Total Recycled and Reused Waste Tons 38,430.98 48,463.64 49,689.91
Total Profit RMB 100 million 5.80 7.25 7.88 Electricity 10,000 kWh 13,280.151 14,772.641 21,290.092
Net Profit Attributable to Shareholders of the Listed Natural Gas 10,000 m? 739.701 820.811 1,140.79 2
RMB 100 million 3.62 4.50 4.95
Company
Gasoline Tons 108.20 97.31 87.97
Total Taxes Paid RMB 100 million 3.34 3.47 4.07
Diesel Tons 281.00 232.82 168.74
Net Assets RMB 100 million 38.24 41.13 43.32 Tons of standard coal
Total Energy Consumption 35,882.56 39,121.65 38,366.06
equivalent
Return on Net Assets % 9.77 11.33 11.67
Tons of standard coal
Return on Total Assets % 4.01 4.62 6.00 Energy Consumption Per Unit equivalent per 10,000 4.85 4.61 4.56
units
Asset-liability Ratio % 62.64 60.13 61.26 Tons of standard coal
Renewable Energy Consumption 2,121.30 7,951.95 9,598.10
equivalent
Environmental Performance
Proportion of Market-based Renewable Energy
% 5.9 20.3 25.0
Environmental Protection Investment (RMB 10,000) 1,339.30 1,298.41 1,109.72 Consumption
Environmental Protection Tax Paid (RMB 10,000) 11.32 12.56 12.51 Fresh Water Intake Volume Tons 978,592 1,102,185 1,003,649
Total water usage Tons 9,445,182 11,952,941 17,955,410
Number of Environmental Training Sessions Times 21 22 32
Water intensity Ton/unit 0.0130 0.0127 0.0117
Number of Participants in Environmental Training Person-times 686 743 683
Recycled water volume Tons 8,466,650 10,850,573 16,951,761
Total Duration of Environmental Training (hours) Hours 1,474 1,774 1,953
Recycled water ratio % 89.64 90.78 94.41
Number of Safety and Environmental Protection
Times 307 370 391 经济指标
Training Sessions
Total Number of Employees Persons 7,797 7,281 7,434
Number of General or More Severe Environmental
Times 0 0 0
and Safety Incidents Number of Male Employees Persons 6,104 5,603 5,768
Total Greenhouse Gas Emissions Tons of CO2 equivalent 109,106.00 122,319.87 117,790.61 Number of Female Employees Persons 1,693 1,678 1,622
Proportion of Female Employees % 21.71 23.05 21.82
Direct Greenhouse Gas Emissions (Scope 1) Tons of CO2 equivalent 17,218.49 18,109.21 15,324.19
Proportion of Female Managers % 0.37 0.34 0.34
Indirect Greenhouse Gas Emissions (Scope 2) Tons of CO2 equivalent 91,887.51 104,210.66 102,466.42
Number of Female Managers Persons 29 25 25
tCO2 e/RMB/million
Greenhouse Gas Emissions Intensity 11.83 11.83 12.59 1.(Note: the statistical scope covers Changhong Huayi, Jiaxipera, and Huayi Jingzhou)
output value
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Number of Ethnic Minority Employees Persons 135 205 227 Employee Health Check Coverage Rate % 100 100 100
Employee Turnover Rate % 12.75 12.43 10.74
Proportion of Ethnic Minority Employees % 1.73 2.82 3.05
Number of Employee Departures Persons 994 905 799
Number of Employees with Disabilities Persons 28 19 27
Employee Compensation Payment (RMB 10,000) 88,232 86,137 82,708
Proportion Of Employees With Disabilities % 0.36 0.26 0.36
Employee Satisfaction % 88.8 89.2 89.4
Local Hiring Ratio % 40.31 43.26 46.53
Percentage of Employees Receiving
Regular Performance and Career
Number of Local Hires Persons 3,143 3,150 3,459 % 100 100 100
Development Reviews out of Total
Number of New Jobs Created During the Employees
Persons 1,235 1,165 856
Reporting Period Number of Skills Training Sessions
Times 3,705 3,777 4,386
Provided During the Reporting Period
R&D Personnel Persons 379 325 335
Amount of Employee Training Expenditure
(RMB 10,000) 296 438 269
Proportion of R&D Personnel in Total During the Reporting Period
% 4.86 4.46 4.51
Workforce Reserve Talents with Individual Career
Persons 225 234 247
Development Plans
Proportion of Controlled or Equity-
participated Companies Certified as High- % 31.58 35.29 37.50 Total Employee Training Hours Hours 331,684 335,799 338,847
tech Enterprises
Average Training Hours per Employee Hours 42.54 46.12 45.58
Proportion of Controlled or Equity- Employee Training Coverage Rate During
% 100 100 100
participated Companies Recognized as the Reporting Period
% 15.79 17.65 18.75
Specialized, Refined, Differential and
Work Safety Investment (RMB 10,000) 1,380.81 1,418.81 1,770.70
Innovative SMEs (Provincial Level)
Work Safety Investment as a Percentage
Amount of R&D Investment (RMB 10,000) 47,696 35,765 44,336 % 0.11 0.12 0.15
of Operating Revenue
R&D Investment as a Percentage of Safety Training Hours Hours 22,985 15,126 24,875
% 3.70 2.99 3.76
Operating Revenue Average Safety Training Hours per
Hours 3.02 1.99 3.27
Employee
Number of Invention Patent Applications Unit 16 21 14
Number of Safety Incidents Cases 7 9 6
Number of Invention Patents Granted Unit 7 6 13 Number of Major or More Severe
Cases 0 0 0
Accidents
Number of Valid Patents Items 442 459 640 Number of Occupational Health and
Times 286 348 359
Safety Training Sessions Organized
Number of Valid Patents per RMB Million
(items/CNY) 0.0343 0.0384 0.0343 Number of Participant Attendances in
of Revenue Person-times 6,335 13,298 22,817
Occupational Health and Safety Training
Number of Software Copyrights Items 3 4 4 Number of Information Security Training
Times 6 8 48
Sessions
Number of Software Copyrights per RMB
(items/CNY) 0.0002 0.0003 0.0003 Number of Employees Receiving
Million of Revenue Persons 417 793 1,057
Information Security Training
Customer Satisfaction Score 93.76 94.31 94.88 Safety Training Coverage Rate % 100 100 100
Product Recall Ratio % 0 0 0 Percentage of Workplaces Subject
to Occupational Health and Safety % 100 100 100
Average Number of Paid Leave Days per Inspections out of All Workplaces
Day 7.93 7.82 8.25
Employee
Number of Occupational Disease Cases Persons 0 0 0
Labor Contract Signing Rate % 100 100 100
Number of New Occupational Disease
Persons 0 0 0
Social Insurance Coverage Rate % 100 100 100 Cases
Incidence Rate of Occupational Diseases % 0 0 0
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Number of Work-related Injuries Persons 7 9 6 Number of Audit Committee Meetings Times 7 7 6
Work-related Injury Rate % 0.089 0.123 0.081 Number of Strategy Committee Meetings Times 3 2 5
Lost Workdays Due to Work-related Number of Remuneration and Appraisal
Days 320 701 310 Times 2 3 1
Injuries Committee Meetings
Fatality Rate % 0 0 0 Number of Nomination Committee Meetings Times 3 2 1
Number of Work-related Fatalities Persons 0 0 0 Number of Periodic Reports Publicly
Times 4 4 4
Disclosed
Number of Work-related Fatalities per
Persons 0 0 0
RMB 100 million of Revenue Number of Ad hoc Reports Publicly Disclosed Times 137 101 115
Number of Suppliers Companies 373 366 358 Number of Penalties Imposed for Violations
Times 0 0 0
Related to Information Disclosure
Total Number of Suppliers Conducting
Procurement Business with the Company Unit 373 366 358 Number of Investor Research Reception
Times 3 2 2
During the Reporting Period Activities
Number of Qualified Suppliers Unit 373 366 358 Number of Investors Received in Research
Persons 57 35 6
Activities
Number of Suppliers Whose Cooperation
Unit 0 0 0
Was Terminated Due to Non-compliance Number of Investor Questions Answered Unit 69 67 37
Percentage of Suppliers Certified under Investor Question Response Rate % 100 100 100
Quality, Environmental, and Occupational % 100 100 100
Number of Interactions with Investors on
Health and Safety Management Systems Times 47 28 38
Hudongyi
Number of Suppliers Signing Integrity
Companies 373 366 358 Number of Investor Open Exchange
Cooperation Agreements Times 2 2 3
Meetings Held
Number of Volunteer Activity Participants Persons 111 243 276
Number of Investor Calls Answered Times 80 70 75
Number of Volunteer Activities Times 10 15 18
Number of Communications by Email/
Times 2 3 3
Total Volunteer Service Hours Hours 1,004 2,328 2,524 Social Media Platforms
Total Investment in Social Welfare (RMB 10,000) 34.96 57.19 100.8 Shareholding Ratio of Senior Executives % 0.13 0.21 0.27
Number of Employees in Difficult Equity Pledge Ratio % 2.06 4.13 4.13
Persons 241 224 173
Circumstances Receiving Assistance
Cash dividend Cash dividend Cash dividend
Number of Employees in Difficult of RMB 2.5 (tax of RMB 3.0 (tax of RMB 3.3 (tax
Dividend Plan /
Circumstances Receiving Assistance per Persons 0.0324 0.0328 0.0411 inclusive) for inclusive) for inclusive) for
RMB Million of Revenue every 10 shares every 10 shares every 10 shares
Sales of Agricultural Products Supported (RMB 10,000) 7 42 69 (including the
amount for
经济指标
Cash Dividend Amount (RMB 10,000) 17,399 20,880
repurchased
shares)
Number of General Meetings of
Times 5 3 3
Shareholders Proportion of the consolidated statement's
net profit attributable to the parent % 48 46 62
Total Number of Resolutions Approved by
Unit 26 29 22 company's shareholders for the year.
the General Meeting of Shareholders
Basic Earnings per Share (RMB/share) 0.5203 0.6469 0.7141
Number of Board Meetings Times 10 9 11
Total Number of Resolutions Approved by Number of Anti-bribery and Anti-
Unit 58 63 59 Times 7 8 8
the Board of Directors corruption Training Sessions
Attendance Rate of Directors % 100 100 100 Number of Participants in Anti-bribery
Person-times 1,550 1,600 1,650
and Anti-corruption Training
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Coverage Rate of Anti-bribery and Anti- Indicator Index
% 95 98 99
corruption Training
Guidelines for Chinese Corporate Social
Number of Integrity Education Sessions Times 10 13 14 Contents
ResponsibilityReports (CASS-ESG 6.0)
Number of Participant Attendances Covered by
Person-times 4,500 4,800 5,200 About This Report P1.1-1.2
Integrity Education
Total Number of Directors Receiving Anti- Message from the Chairman P2.1
Persons 7 7 7
bribery and Anti-corruption Training
About the Company P3.1-3.3
Proportion of Directors Receiving Anti-bribery
% 100 100 100
and Anti-corruption Training
Total Number of Management Personnel Receiving
Persons 204 213 215
Anti-bribery and Anti-corruption Training ESG Management G1.1.1-1.1.4,G1.1.6-1.1.7
Proportion of Management Personnel Receiving Material Topics Analysis G1.1.9
% 100 100 100
Anti-bribery and Anti-corruption Training
Total Number of Employees Receiving Anti- Stakeholder Communication G1.3.1-1.3.2
Persons 550 625 676
bribery and Anti-corruption Training
Theme: Growing Together, Thriving Together — Huayi People Co-create a New Development
S4.1.12,S4.3.2
Anti-monopoly and Fair Competition Training Ecosystem
Persons 430 453 461
Number of Persons
Compliance Management with Integrity and Ethical
G2.1.1-2.1.3,G2.1.8,G2.2.1-2.2.3
Anti-monopoly and Fair Competition Training Conduct
Person-times 430 453 461 Governance: Building a Solid
Person-times
Foundation for Huayi and Co-
Risk Prevention and Governance Enhancement -
Proportion of Employees Receiving Anti-bribery creating Value
and Anti-corruption Training out of Total % 7.05 8.58 9.09
Transparent Communication and Value Sharing -
Employees
Green Manufacturing and Eco-friendly Factories E2.4.1-2.4.4,E2.3.3,E3.3.3
Proportion of Independent Directors % 33 33 33
Environment: Advancing Green E2.1.1-2.1.3,E2.1.6-2.1.7,E2.2.1-2.2.6,E3.1.1-3.1.7,
Ecological Protection and Sustainable Development
Proportion of Female Directors % 11 0 0 Development for Shared Prosperity E3.2.1-3.2.4,E3.3.1-3.3.5,E3.3.9-3.3.11
Response to Climate Change and Lean Resource
E1.1.1-1.1.8,E1.1.15-1.1.16
Special Audits Conducted Times 3 3 4 Management
Innovation-driven Development and Intelligent
Total Amount Involved in Special Audits (RMB 10,000) 55,939 265,478 90,784 S2.1.14-2.1.16，S3.4.1-3.4.2
Manufacturing Upgrading
Internal Audit Inspections Conducted Times 4 4 3 Quality Excellence and Value Chain Synergy S3.3.1-3.3.3,S3.4.3-3.4.4,S3.1.2
Society: Fostering Huayi’s Core
and Empowering Co-growth
Employee Development and Protection of Rights and
Contract Legal Review Rate % 100 100 100 S4.1.5,S4.1.11,S4.2.2-4.2.7,S4.3.1-4.3.3
Interests
Contract Performance Fulfillment Rate % 100 100 100 Compassion and Responsibility, Empowering Rural
S1.1.2,S1.2.1-1.2.3
Communities
Number of Compliance Training Sessions Times 20 39 42 Future Outlook A1
Investment in Law-abiding and Compliance Key Performance A2
(RMB 10,000) 2.54 17.06 13.73
Training
Appendix Indicator Index A3
Number of Arbitration Cases Items 0 3 0
Feedback A6
Number of Litigation Cases Items 4 2 4
Changhong Huayi Compressor Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report
Feedback
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Mailing Address: No. 1 Changhong Road, High-tech Zone, Jingdezhen, Jiangxi Province
Contact Department: Securities Office
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