Stock Code：002668 Abbr.： TCL Smart Home
Guangdong TCL Smart Home Appliances Co.,Ltd.
Environmental, Social and Governance Report
Development 02 Lead Product
Responsibility
Response to Climate Change 15 R&D and Innovation 33
Environmental Compliance Management 21 Product Quality and Safety 40
CONTENTS Energy and Resource Management 23 Supply Chain Management 45
Pollution and Waste Management 27 Customer Service 49
About the Report 01
Message from the Board of Directors 03
About TCL Smart Home 05 03 Co-create a Collaborating
Community Ecosystem 04 Consolidate Governance
Foundations
ESG Management 07 Employee Rights and Protection 55 Party Leadership 67
Employee Training and Development 58 Corporate Governance 68
Occupational Health and Safety 61 Compliant Operation and Risk Management 71
Outlook 79 Community Development 63 Business Ethics 74
Appendix 81 Data Security and Privacy Protection 75
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 About the Report
About the Report
This is an annual report covering the period from January 1, 2025 to This Report is prepared in accordance with the Self-Regulatory Guidelines
Reporting Period Standards of
December 31, 2025 (hereinafter referred to as the "Reporting Period"). To No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability
improve the completeness of the report, some of the data is beyond the Report (For Trial Implementation) (hereinafter referred to as the
Reference for
above range. "Guidelines"). Additionally, this report draws upon the following:
Report
※ The Sustainability Reporting Standards (2021) published by the Global
The scope of the Report covers Guangdong TCL Smart Home Appliances Sustainability Standards Board (GSSB) (hereinafter referred to as the
Scope of
Co., Ltd. and its principal subsidiaries. For ease of presentation and "GRI Standards")
perusal, " TCL Smart Home ", "the Company", "we" and "us" in the Report
Organization
refer to Guangdong TCL Smart Home Co., Ltd. and its principal subsidiaries ※ The UN Sustainable Development Goals (SDGs)
below, unless otherwise specified.
※ The Ten Principles of the UN Global Compact (UNGC)
※ International Sustainability Standards Board (ISSB) IFRS Sustainability
Disclosure Standard 1 - General Requirements for Disclosure of
Full Name of Principal Subsidiaries Short Name Sustainability-related Financial Information and IFRS Sustainability
Disclosure Standards 2 - Climate Related Disclosures
TCL Home Appliances (Hefei) Co., Ltd. Hefei Home Appliances
Homa Appliances Co., Ltd. Homa Appliances The Company guarantees that the content of this Report does not contain
Report
any false records or misleading statements.
Reliability
Assurance
You can download this report and obtain more information about the
Access to the
Company's sustainability and ESG practices by visiting our official website:
All data and examples used in this Report are derived from the Company's
https://www.tclsmarthome.com/.
Report Statement Report
official documents, statistical reports as well as summaries and statistics
on the performance of responsibilities.
None
Revision of
Previous
Reports
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Message from the Board of Directors
Message from the
Board of Directors
Against the backdrop of a new wave of technological revolution and industrial transformation, artificial with a continued increase in authorized patents, and achieved technological advancements in key areas
intelligence, the Internet of Things, and intelligent manufacturing are profoundly reshaping the global such as health preservation, intelligent laundry solutions, and energy efficiency. Meanwhile, we have
home appliance industry landscape. TCL Smart Home has aligned with these trends, taking technological integrated artificial intelligence technologies into product manufacturing and quality inspection processes,
innovation as the core driving force and continuously advancing its global strategy, with the ambition to continuously enhancing product quality and promoting the premiumization and intelligent upgrade of our
become a leading global smart home appliance company. products.
In 2025, TCL Smart Home further deepened its ESG governance practices and promote the development Fostering A Robust Talent Development Ecosystem, Demonstrating Corporate Responsibility. Upholding
of a sustainable framework characterized by green and low-carbon operations, shared value creation, a people-oriented philosophy, we continue to improve employee rights and benefits protection systems,
and refined governance. We firmly believe that the Company's long-term development relies not only establish dual career development pathways for management and technical professionals, implement
on technological innovation to strengthen its global competitiveness, but also on fulfilling corporate multi-dimensional talent development programs, and provide comprehensive skills and safety training for
responsibilities in response to evolving societal expectations. all employees. These efforts aim to create a diverse, inclusive, and empowering workplace environment.
At the same time, the Company actively fulfills its social responsibilities by regularly organizing employee
Anchored In "Dual Carbon" Goals, Committed to Building a Green Ecosystem Across the Entire Value Chain. volunteer activities and community engagement initiatives.
We continue to enhance climate governance by establishing a Company-led and subsidiary-coordinated
climate risk management mechanism, systematically advancing carbon emissions management and Optimizing Governance Structure, Strengthening the Foundation for Sustainable Development. Our
energy conservation initiatives. On the production side, we are accelerating the adoption of clean energy. ESG management has been integrated into the Company's decision-making framework, supported by
Hefei Home Appliances is advancing photovoltaic and energy storage projects, three of our factories continuously improved governmental systems and rules of procedure. In risk management, we rely on the
have been consecutively recognized as "National Green Factories," and Homa Appliances' photovoltaic "Three Lines of Defense" model to enhance compliance, data security, and business ethics. For investors,
project has achieved annual power generation exceeding 10.8 million kWh. On the operational side, we we conducted diverse investor communication activities throughout the year to ensure timely and accurate
have strengthened pollution prevention and resource recycling, with Hefei Home Appliances increasing information disclosure. Through transparent and standardized governance practices, we have strengthened
its industrial water reuse rate to 85.3%, promoting the coordinated development of operations and market trust and laid a solid foundation for our global expansion.
environmental protection. We also collaborate closely with suppliers to advance green supply chain
development and support low-carbon transformation across the value chain. Looking ahead, TCL Smart Home will continue to deepen its global strategy, steadily expand into overseas
markets, and further enhance product competitiveness, brand influence, and sustainability capabilities.
Driving Intelligent Industrial Transformation, Breakthrough in Core Technologies. The Company has further We will also actively respond to the "AI+" initiative, positioning intelligent manufacturing as the primary
increased R&D investment and strengthened its innovation system. The Phase I laboratory of the Hefei Home application scenario to transform advanced technologies into real productivity. By maintaining ESG as the
Appliances Washing Machine R&D Center has been officially launched, while Homa Appliances has built foundation of our development, we will continue to advance global expansion and enhance long-term value
an integrated innovation system based on a national-level industrial design center and CNAS-accredited creation through green transformation, technological innovation, and sustainable growth.
laboratories. During the year, we participated in the formulation of multiple national and industry standards,
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 About TCL Smart Home
About TCL Smart Home Milestones
• Homa Incorporation
Company Profile • Operation of the Company's first factory
Guangdong TCL Smart Home Appliances Co., Ltd. (hereinafter referred to as the "Company") was established in 2002 and was listed
on the Shenzhen Stock Exchange in April 2012 under the stock code 002668.SZ. In May 2021, the Company's controlling shareholder • Sales volume exceeded 1 million units for the first time
changed to TCL Home Appliances Group, marking the beginning of a new phase of development. The Company is committed to 2005
• Operation of Homa's second factory
becoming a world-leading smart home appliance enterprise, firmly promoting the globalization strategy, taking AI smart home
appliance as the direction of development, and realizing the interconnection, collaborative operation and self-learning optimization
of home appliance products through scientific and technological innovations, so as to bring forward-looking scientific and • Ranked No. 1 Chinese refrigerator
technological experiences, smart and healthy life for the users, and to promote the further development of the industry through 2008–2009 exporter to Europe for the first time
science and technology. • Listed on the Shenzhen Stock Exchange
The Company has two core production and operation bodies, Hefei Home Appliances and Homa Appliances, with its main • Annual sales volume exceeded 5 million units
products covering refrigerators (including freezers) and washing machines.In 2025, the Company achieved its 17th consecutive for the first time 2012
year as China's No. 1 in refrigerator export volume and its 18th consecutive year as China's No. 1 in refrigerator exports to Europe. • Operation of Homa's third factory and
TCL refrigerators and washing machines have also been featured for nine consecutive years on CCTV's National Brand program, accessories sub-factory
establishing themselves as benchmarks for high-quality development among Chinese home appliance brands.
• Development and launch of the very first all-new
Strategic Vision • Biggest Chinese refrigerator exporter to Europe
for the 10th consecutive year 2018
Looking ahead, TCL Smart Home is committed to becoming a globally leading smart home appliance enterprise. It will steadfastly • Homa Appliances' advent of the intelligent dual-
advance its globalization strategy, with AI-powered smart appliances as the core development direction. Through continuous 2019 inverter technology and single-system with multi-
technological innovation, the Company aims to achieve full interconnectivity, coordinated operation, and self-learning optimization temperature control technology
across its product ecosystem. By delivering forward-looking technological experiences and promoting smart, healthy living, the
Company strives to drive further advancement of the industry through innovation. • Annual sales exceeded 10 million units
Hefei Home Appliances will steadfastly cultivate an organizational core defined by "technology-driven growth and vitality-first."
• Homa owned 9 production sites
• The controlling shareholder of Homa Appliances was
It will establish a strategic pathway centered on "brand-leading value, global efficiency operation, and a focused breakthrough in
changed to TCL Home Appliances Group Co., Ltd, and
the mid-to-high-end market." The Company will consistently pursue excellence in product quality and outstanding performance
the actual controller was changed to Mr. Li Dongsheng.
experience, while rapidly building and enhancing core capabilities. With a precise focus on key regions and segmented markets, it
aims to advance with agility into the industry's leading tier. • Homa held the groundbreaking ceremony of the smart
Homa Appliances will unwaveringly uphold its distinctive strategic positioning as a "globally specialized ODM supplier of • Annual revenue exceeded RMB 10 billion
refrigerators." It will focus on the refrigerator and freezer business, adhere to a globalized operating model, and continue to deepen
• Homa Group realized net income of 424 million • Full termination of the Fintech business and disposal
its expertise in frost-free cooling technology. By fully advancing the in-depth application of intelligent manufacturing, the Company
is committed to delivering refrigerator and freezer products to global customers that combine top-tier quality with exceptional cost RMB from attributable sources, reversing the loss of all related assets
performance, driven by a philosophy of ultimate professionalism. year on year
• Homa Appliances' global sales volume exceeded
Refrigerator Intelligent Manufacturing Base
Ltd., to further expand the refrigerator/washing
machine business
• The Company was officially renamed Guangdong
TCL Smart Home Appliances Co., Ltd. 2024
• TCL officially signed an agreement with the
International Olympic Committee (IOC) to become a
Worldwide Olympic Partner.
• Homa Appliances remained the No. 1 in export volume
for the 17th consecutive year.
for high-end frost-free refrigerators, with an annual
capacity of 2.8 million units, was fully completed
and put into operation, and the construction of its
manufacturing base in Thailand officially commenced.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 ESG Management
ESG Management Stakeholder Engagement
TCL Smart Home, based on industry characteristics and operational realities, has identified six key stakeholder groups: government
and regulatory authorities, shareholders and investors, customers, suppliers and partners, employees, as well se the community
and environment. The Company has established diversified and regular communication mechanisms to systematically collect and
ESG Governance
respond to relevant opinions and feedback, continuously improving ESG management and promoting sustainable value for all
stakeholders.
TCL Smart Home is comprehensively advancing the development of its ESG management system. During the reporting period, the
Company enhanced the functions of the Board Strategy Committee by renaming it the "Strategy and Sustainability Committee"
under the Board of Directors. Correspondingly, the Company formulated the Working Rules of the Board Strategy and Sustainability
Key Stakeholders Focused Topics Communication Methods TCL Smart Home Responses
Committee, formally incorporating ESG matters into the unified management of the Company's highest governance level. The
Committee is responsible for reviewing ESG-related strategic plans and providing guidance on the implementation, recognizing and • Party leadership • Government official website, • Uphold party leadership in company development
managing ESG-related risks as well as supervision of such initiatives across its subsidiaries. At the same time, ESG rating targets have announcement release and actively fulfill social responsibilities
• Compliant operation and risk
been included as one of the key performance indicators in the annual evaluation of senior executives, and are directly linked to their management • Government visits and • Operate legally and with integrity, responding to
annual performance bonuses. This mechanism is designed to strengthen management accountability and drive concrete actions in • Product quality and safety research national policies
the field of sustainable development. • Information platform • Improve the product quality management system
Government and • Response to climate change
disclosure • Promote energy conservation and emission
On this basis, Hefei Home Appliances, as a core member, has joined the TCL Industries ESG Committee and serves as an industry Regulatory • Business ethics
• Periodic reports reduction, and develop green products
representative in the Committee Office. It is specifically responsible for ESG strategic planning, information disclosure, and Authorities
• Create employment opportunities
implementation within the Hefei Home Appliances segment. Meanwhile, Homa Appliances has established its own ESG Committee,
dedicated to advancing and overseeing the implementation of the Company's ESG-related policies and management requirements.
• R&D and innovation • Shareholders' meetings • Optimize governance structure
• Corporate governance • On-site reception • Standardize company management and establish
• Compliant operation and risk • Telephone, Shenzhen Stock investor communication channels
ESG Awards and Honors
management Exchange "Interactive Easy", • Establish effective communication mechanisms
Shareholders and email, etc.
Investors • ESG governance • Improve risk management and performance
The 3rd Guoxin Cup • Investor performance briefing evaluation systems
"ESG Rising Star Golden Bull Award" Ju Dong Mi "Top 100 ESG Companies"
China Securities Journal Board Secretaries Institute • R&D and innovation • Online customer service • Strengthen technological innovation
• Product quality and safety • Email • Develop energy-efficient and innovative products
• Information security and • Official website • Enhance product quality and provide excellent
The 8th China Excellence IR privacy protection • Official WeChat account service
"Best ESG Rising Star Award" • Customer service • Strengthen customer privacy protection
Customers
Cross-Border Roadshow Platform for • Conduct customer satisfaction surveys and need
assessments to continuously improve customer
Listed Companies
service
• Compliant operation and risk • Industry exchange meetings • Standardize procurement processes
management • Routine management on • Strengthen supplier evaluation and auditing
• Supply chain management suppliers • Promote the healthy development of the industry
• Business ethics • Supplier trainings
Suppliers and
Partners
• Employee rights protection • Employee training courses • Safeguard employees' basic rights
• Employee training and • Employee congresses • Respect the diversity of the workplace
development • Morning briefings, regular • Ensure employee occupational safety and health
• Occupational health and meetings • Build smooth career development pathways
safety
Employees • Employee feedback mailbox • Improve employee benefits and care
• Community development • Public benefit activities • Support social welfare initiatives
• Response to climate change • Industry development activities • Carry out volunteer activities
• Environmental compliance • University and community • Strengthen management of wastewater, waste
management activities gas, and solid waste
Community and • Energy and resource • Develop green production
Environment management • Promote energy conservation and emission
• Pollution and waste reduction, and develop green products
management
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 ESG Management
Double Materiality Assessment
To systematically identify, fully understand, and respond to stakeholders' concerns regarding the Company's sustainable
development practices, TCL Smart Home conducts ESG topic identification and double materiality assessments. During
lmpact materiality
the assessment process, we refer to the latest international disclosure standards, including GRI 3: Material Topics and IFRS
Environmental compliance Response to climate change
Sustainability Disclosure Standard 1 – General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1),
management
continuously improving our evaluation methods. In line with the Guidelines' criteria for assessing impact materiality and financial Energy and resource management
materiality, we carry out double materiality assessments on the high relevant topics to the Company. Occupational health and safety R&D and innovation
Employee rights and protection Product quality and safety
Steps Key Procedures Employee training and development Supply chain management
Corporate governance Compliant operation and risk management
Systematically review domestic and international sustainable development policies and
ESG governance
Analyze the Company's standards. By integrating the Company's strategic positioning, core business, and value chain
activities and context of structure, analyzing industry development trends and competitive landscape to clarify the
business Company's sustainable development context, identify key topics, and determine important
stakeholder groups.
Based on a thorough understanding of the Company's operations and informed by
stakeholder engagement outcomes, potential ESG topics were comprehensively identified
Establish a list of ESG topics
and preliminarily screened. These topics were further analyzed across different time horizons Community development Pollution and waste management
to assess their actual and potential impacts, risks, and opportunities.
Customer service
Through internal interviews, expert evaluations, and other diversified approaches, Information security and privacy
Assess and confirm topic systematically assess and rank each topic's impact materiality and financial materiality, protection
materiality considering the Company's development strategy, industry trends, and policy context, Business ethics
resulting in a double materiality matrix.
After review and approval by the Board of Directors, determine the high-priority topics for
Topic reporting
the year and provide focused disclosure and responses in the report.
During the reporting period, the Company identified a total of 17 ESG-related topics, including 4 environmental topics, 8 social
topics, and 5 governance topics. In addition to the topics recommended by the Guidelines, the list also includes other customized
topics identified by the Company based on policy trends, industry context, business model, and capital market ratings. Financial materiality
For the identified topics, the Company conducts multidimensional and comprehensive risk and opportunity assessments, covering
impacts from its own operations to those across the value chain. This includes evaluating both the impact materiality and financial
materiality of each topic, and the results are used to construct a double materiality matrix. Environmental Social Governance
Response to climate change R&D and innovation Corporate governance
Environmental compliance Product quality and safety Compliant operation and risk
Conduct a comprehensive assessment of the substantive impacts of ESG topics across management management
environmental, economic, and social dimensions, covering both positive and negative Customer service
Impact materiality impacts as well as actual and potential effects. The assessment systematically evaluates Energy and resource Business ethics
each impact based on its likelihood and magnitude. management Supply chain management
Information security and
Pollution and waste Employee rights and protection privacy protection
management
Employee training and ESG governance
Assess the financial impacts of ESG topics on the Company's business model, operations, development
Financial materiality and financial performance across short-term, medium-term, and long-term time horizons,
taking into account both the likelihood and magnitude of each impact. Occupational health and safety
Community development
Note: The Company defines its time horizons as short-term (up to and including 1 year), medium-term (from 1 to 5 years inclusive),
and long-term (beyond 5 years).
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 ESG Management
UN SDGs Roadmap
SDGs Goals TCL Smart Home Initiatives SDGs Goals TCL Smart Home Initiatives
Decent work & economic
Build an equitable, safe, and inclusive working
Mobilize corporate resources to support community growth
environment, create stable employment
development and contribute to the implementation
No poverty
Promote sustained, inclusive opportunities for the community, and actively
of the rural vitalization strategy; provide financial
End poverty in all its forms and sustainable economic promote the employment of persons with disabilities
assistance to employees in need to improve their
everywhere growth, full and productive to ensure equal development opportunities for
well-beings.
employment and decent work vulnerable groups.
for all
Industry, innovation &
Deepen innovation in R&D by establishing a professional
Promote a healthy lifestyle by regularly organizing infrastructure
R&D framework, research institutes, and various
Good health & wellbeing
medical check-ups, health education training, and
Build resilient infrastructure, testing units, while continuously increasing investment
Ensure healthy lives and healthcare awareness activities, helping employees
promote inclusive and in funding and talent to drive product and industry
promote wellbeing for all develop good work and health habits.
sustainable industrialization upgrading through efficient and green technologies.
and foster innovation
Integrate green principles throughout the entire
Emphasize talent development by formulating
product lifecycle by adopting environmentally friendly
Quality Education Sustainable cities &
differentiated training programs aligned with the
materials, clean processes, and recyclable packaging
communities
Ensure inclusive and equitable Company's development, and encourage continuous
quality education and promote to ensure full compliance with environmental
learning through diversified development initiatives Make cities and human
lifelong learning opportunities standards. At the same time, promote waste reduction
to comprehensively enhance employees' overall settlements inclusive, safe,
for all and resource utilization through technological
capabilities. resilient and sustainable
innovation to minimize environmental impact.
Firmly oppose workplace discrimination, harassment, Actively advances climate change response by
Gender Equality coercion, threats, and violence, while fully considering Climate action identifying climate-related risks and opportunities,
the needs of female employees to foster a fair and introducing green design, building green factories,
Achieve gender equality and inclusive workplace culture; ensure equal pay for equal Take urgent action to combat and promoting green production and green office
empower all women and girls work regardless of gender, and provide employees climate change and its impacts practices, continuously reducing carbon emissions
with an open, fair, and equitable promotion platform. from operations and enhancing climate resilience.
Apply water risk assessment tools to identify risks Peace, justice & strong
and implement tiered management and control, institutions
Continuously promote compliant operations, strictly
Clean water and sanitation
advance water-saving technological upgrades and
Ensure availability and Promote peaceful and inclusive prohibit corruption, and strive to build a transparent
compliant discharge management, strengthen
sustainable management of societies for sustainable and fair management system. Through diversified
community communication and information
water and sanitation for all development, provide access to channels for democratic communication, ensure that
disclosure to continuously improve water-use
justice for all and build effective, employees' voices are fully expressed and heard.
efficiency and watershed sustainability.
accountable and inclusive
institutions at all levels
Affordable & clean energy Continuously advance the transition to clean
energy by implementing distributed photovoltaic
Ensure access to affordable, and energy storage projects and procuring green
reliable, sustainable and electricity, further enhancing the sustainability of
modern energy for all energy use.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Implement Green Development
Implement Green
Development
TCL Smart Home takes action to protect the Earth, deeply embedding
the green concept into its core corporate development strategy.
Through innovative technology and efficient management practices,
the Company actively reduces its carbon footprint and leads the
industry in green transformation. From production to products, and
from supply chain to recycling chain, the Company has established an
environmental protection system covering the entire lifecycle, working
together with employees, partners, and users to stride towards a
sustainable future.
ENVIRONMENT
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Implement Green Development
Response to Climate Change Transitional Risks
Duration Impacted
Risk Types Risk Description Scope of Impact
of Impact Financial Metrics
TCL Smart Home advances its climate change management efforts through its ESG management system. The
Governance Board of Directors serves as the highest supervisory body, overseeing the review of climate-related strategic Climate-related Disclosure: Regulatory bodies and international
plans and major initiatives. Under the guidance of the Strategy and Sustainability Committee, its subsidiaries— standards are imposing more systematic requirements on listed
Hefei Home Appliances and Homa Appliances—have each established greenhouse gas task forces working companies regarding the identification and analysis of climate risks, Short-
as well as the transparency of carbon emissions data. Companies need term, Self-operation Operating Costs
groups, implemented carbon emissions management, energy conservation and emission reduction initiatives
to continuously improve their carbon accounting systems and internal Mid-term
tailored to the Company's operational contexts, while monitoring and tracking the progress of these efforts to control processes, while also increasing investments in compliance
ensure that climate management is aligned with the Company overall development strategy. management and information systems.
Policy Risk
TCL Smart Home is committed to green development. In line with TCL Industries' climate strategy, the Trade Regulation: Some economies are tightening regulatory
Strategy Company is systematically advancing its green transformation through initiatives such as green manufacturing, requirements related to product sustainability. For example, the Digital
Upstream Value Operating Costs
optimized energy management, carbon emissions control, product lifecycle management, and the promotion Product Passport (DPP) system is being gradually rolled out to key Mid-term,
Chain
sectors such as electrical and electronic equipment. The implementation Long-
of a green corporate culture. Operating
of these rules will raise the bar for companies in terms of compliance term
Self-operation Revenue
disclosures and may increase compliance costs in the export process,
Based on Working Rules of the Board Strategy and Sustainability Committee , in accordance with the
thereby having a certain impact on product pricing and profit margins.
relevant requirements of the Guidelines and in alignment with International Financial Reporting Standard on
Sustainability Disclosure No. 2—Climate-related Disclosures (IFRS S2) issued by the International Sustainability
Standards Board (ISSB), TCL Smart Home regularly conducts climate risk identification and assessment across The demand for a green and low-carbon transition in the manufacturing
sector is growing ever stronger, with energy efficiency standards, energy-
multiple dimensions—including the value chain, stakeholders, and production and business operations—
saving regulations and the development of green manufacturing systems
taking into account the Company's business structure and regional operational characteristics. The Company Mid-term,
undergoing continuous improvement. As household appliances are
analyzes the potential scope of impact for different risk types to provide a basis for formulating subsequent Technical Risk Long- Self-operation Operating Costs
major energy-consuming end-use devices, energy efficiency standards
term
management measures. The Company has assessed the potential impact of relevant climate risks on its are likely to be raised further in the future, prompting the Company to
business and financial performance under various climate scenarios, referencing scenario assumptions and increase its investment in technological research and development and
pathways established by authoritative international climate research institutions. product upgrades.
As the concept of sustainability continues to gain traction, stakeholders Self-operation
Identification of Climate-related Risks and Opportunities Reputational are paying increasing attention to companies' climate performance. Short- Operating
Risk Inadequate climate risk management may adversely affect Company term Downstream Revenue
reputation and brand image, thereby impacting market sales. value chain
Physical Risks
Duration of Impacted
Risk Types Risk Description Scope of Impact
Impact Financial Metrics
The frequency and intensity of extreme precipitation events
may increase, thereby raising the risk of flooding and urban Upstream Value
waterlogging. This could result in damage to facilities and Chain Fixed Assets Climate-related Opportunities
Flooding and
equipment, moisture damage to inventory, disruptions to Short-term Self-operation Revenue
heavy rainfall
logistics and transportation, and temporary production Downstream Operating Costs Impacted
stoppages, leading to asset impairment, delivery delays, and value chain
Opportunity
Opportunity Description
Duration Scope of
Financial TCL Smart Home Initiatives
increased equipment maintenance costs. Types of Impact Impact
Metrics
Increased uncertainty regarding typhoon intensity and extreme Upstream Value TCL Smart Home incorporates a full product
Chain Fixed Assets As the trend toward
Acute Risks
storm events in coastal regions may result in damage to building lifecycle approach during the product research
green consumption gains
Hurricane structures, power outages, and delays in logistics and transportation, Short-term Self-operation Revenue and development and design phases, taking
momentum, market demand
disrupting the stability of production supply chains while also environmental factors into full consideration
Downstream Operating Costs for energy-efficient and low-
increasing expenses related to facility repairs and reinforcement. Short- and aligning with energy efficiency standards
value chain Market carbon home appliances Self- Operating
term, and green product requirements in various
Opportunities is gradually increasing, operation Revenue
Mid-term countries. Through green innovation in key
presenting potential market
Hot weather can lead to increased cooling demands and higher components and core technologies, the
opportunities and market
electricity consumption in production facilities and can also affect Company enhances product durability and
share for home appliance
employee productivity and equipment reliability. In extreme heat, energy efficiency to better meet the trends of
manufacturers.
companies are required to provide employees with heat allowances green consumption.
and heatstroke prevention measures. Self-operation
Heatwave Short-term Downstream Operating Costs
Under extreme high-temperature conditions, the workload on value chain TCL Smart Home is progressively integrating
refrigeration products increases, which may affect equipment low-carbon technologies into its product
stability and lead to a rise in demand for after-sales repair and Low-carbon technologies development and manufacturing processes,
maintenance services; as a result, the Company needs to allocate help improve product thereby enhancing product energy efficiency
additional resources for service and technical support. energy efficiency and drive and driving product portfolio upgrades. At
Mid-term,
Technological green upgrades, while also Self- the same time, by optimizing production
Long- Operating Costs
Opportunities optimizing production operation processes and energy management, the
term
Chronic Risks
Sea-level rise may affect the safety of coastal assets and processes and enhancing Company is improving energy utilization
infrastructure, potentially increasing the costs of facility retrofitting Fixed Assets energy efficiency, thereby efficiency and reducing unit production
Sea-level Rise Long-term Self-operation reducing production costs. costs, thereby strengthening its market
and capital expenditures, and placing some pressure on the value of Operating Costs
fixed assets and operating costs. competitiveness against the backdrop of the
green transition.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Implement Green Development
Climate Scenario The Company has selected the "Reference Emissions Scenario" (SSP2-4.5) and the "High
Emissions Scenario" (SSP5-8.5) from the socio-economic pathways published by the United
Analysis Nations Intergovernmental Panel on Climate Change (IPCC) as the analytical basis for its
physical risk assessment. It has conducted a preliminary assessment of the severity of risks
by combining the likelihood of occurrence and the magnitude of impact across different
time horizons. Regarding transition risks, the Company relies on the "Net-Zero Emissions
(NZE)" scenario published by the International Energy Agency (IEA) to assess the impact
on key segments of its value chain and to preliminarily evaluate the overall impact on the
Group's operational performance across different time horizons.
Physical Risk Analysis
Time Dimensions Risk Types
SSP2-4.5 SSP5-8.5 SSP2-4.5 SSP5-8.5
Time Range Explanation
Flooding and heavy rainfall
This phase coincides with the critical window period for the country to reach peak carbon
emissions by 2030 and the ongoing advancement of the green transition. Changes in
and export business strategies, requiring the Company to adapt to evolving trends in
green consumption and regulatory requirements.
Heatwave
This phase aligns with the national carbon neutrality targets and global pathways for deep
emissions reductions; trends towards the optimization of the energy mix and industrial
upgrading are likely to continue to intensify, and the Company will face the need for
structural adjustments and enhancement of its production and operational management.
Transitional Risks Analysis
Scenario Selection
Expected
Climate warming by Risk Types Upstream Product Upstream Product
Climate Risks Scenario Description Manufac- Product Manufac- Product
Scenarios the end of this supply Develop- supply Develop-
turing Sales turing Sales
century chain ment chain ment
This scenario assumes that global socio-economic development
follows historical trends, climate policy is implemented with Strengthened
moderate ambition, and greenhouse gas emissions peak in the Approximately Disclosure Regulation
SSP2-4.5
medium term before gradually declining; it is used to simulate a 2.7° C on Climate Information
climate change pathway characterised by steady progress in social,
economic and technological development.
Physical risks
Trade and Distribution
This scenario assumes a path of rapid economic growth driven by Restrictions
fossil fuels, with a lack of effective climate mitigation measures,
Approximately
SSP5-8.5 leading to a continued rise in greenhouse gas emissions; it is used to
simulate climate change trajectories under extremely high emission Green Transition
conditions. Technology
Investment
This scenario outlines a challenging transition pathway aimed at
Net-Zero Approximately Customer Trust
Transition risks achieving net-zero carbon dioxide emissions by 2050, in line with the
Scenario (NZE) 1.5° C
goal of limiting the long-term rise in global average temperature to 1.5° C.
Low Medium- Medium Medium- High
Low High
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Implement Green Development
Climate Resilience and Responses TCL Smart Home has integrated climate risk management into its overall enterprise
Impact, Risk risk management system. Centered on strategic planning and operational activities,
and Opportunity the Company systematically identifies, assesses, and responds to both physical
and transition risks. Through scenario analysis, it evaluates potential financial
Risk Management Relevant Measures
Management impacts, formulates targeted action plans, and establishes a normalized monitoring
• Maintain constant vigilance regarding extreme weather warnings and issue alerts in good time; at the
mechanism to continuously enhance its climate governance capabilities and
same time, draw up and implement contingency plans, and conduct regular emergency drills to ensure
operational resilience.
the safety of personnel during extreme weather conditions.
Acute Risks • Strengthen the protection of fixed assets, optimize equipment performance and ensure the stable
operation of production facilities.
Integrate climate risks into the overall risk management system in line with
• Enhance the efficiency and responsiveness of after-sales and customer service to lay the groundwork the Company's strategy and operating characteristics. Systematically identify
for managing periods of peak demand. Risk Identification physical risks and transition risks from the dimensions of business model, value
chain and stakeholders.
• Carry out regular risk identification and assessment, and refine flood prevention, drainage and
infrastructure maintenance measures as appropriate to enhance the safety and resilience of asset
operations.
Chronic Risks Assess the potential financial impacts of climate risks and opportunities on
• Integrate climate resilience considerations into project planning and investment decision-making
Risk Assessment various business segments through qualitative, quantitative and scenario
processes to optimize asset allocation and construction standards. analyses, and identify key risk areas.
• Build upon the existing ESG management system to continuously refine greenhouse gas emissions
accounting and disclosure processes, gradually improve data collection and internal control standards,
Develop targeted climate action plans based on assessment results, optimize
strengthen the development of relevant information systems and compliance management capabilities,
management measures, and enhance the Company's adaptability and resilience
Risk Response
and ensure that climate-related disclosures comply with regulatory requirements.
under different climate scenarios.
Policy Risks • Track developments in international carbon policies and trade regulations; strengthen capabilities in
supply chain carbon data management and product carbon footprint assessment; collaborate with
upstream supply chain partners to optimize raw material procurement structures; and simultaneously
improve product energy efficiency, thereby enhancing the adaptability of export operations to low- Establish a regular monitoring mechanism. The Board of Directors regularly
carbon regulations. Ongoing Monitoring reviews climate risk management progress and implementation effectiveness,
and continuously improves the climate governance system.
• Persistently advance investments in product energy efficiency upgrades, green technological innovation,
energy-saving R&D and product portfolio optimization, whilst simultaneously driving energy-saving
Market Risks
retrofits in production processes and enhancing energy management, thereby strengthening our
capacity for technological iteration and cost control.
TCL Smart Home actively responds to the net-zero strategy deployment of TCL Industrial
Indicators and Targets and continuously advances the management of greenhouse gas emissions. During the
• Enhance mechanisms for identifying and managing climate risks, focus on the development of green
reporting period, the Company conducted a systematic inventory of greenhouse gas
Reputational Risks products, improve transparency in information disclosure and communication with stakeholders, and
emissions within its operational boundaries in accordance with ISO14064-1:2018 and the
enhance the company's brand image and market recognition in the field of green development.
Greenhouse Gas Protocol (GHG Protocol). Among its subsidiaries, Hefei Home Appliances
completed the inventory and verification of Scope 3 emissions and obtained ISO 14064
Greenhouse Gas Inventories and Verification. During the reporting period, the total
greenhouse gas emissions of TCL Smart Home amounted to 156,400.60 tons of carbon
Opportunity dioxide equivalent, with an emission intensity of 8.44 tons of carbon dioxide equivalent
Management
Relevant Measures per million revenue.
• During the product research, development and design phase, we apply a full product lifecycle
approach, taking full account of environmental factors and benchmarking against international energy
Market
efficiency standards and green product requirements. Through green innovation in key components
Opportunities
Indicators Unit 2025
and core technologies, we enhance product durability and energy efficiency to better align with green
consumption trends. Total Greenhouse Gas Emissions tons of CO2e 156,400.60
Direct Emissions (Scope 1) tons of CO2e 14,424.98
• During the product development and manufacturing processes, we will progressively implement low-
carbon technologies to enhance product energy efficiency and drive product structure upgrades. At Indirect Emissions (Scope 2) tons of CO2e 141,975.62
Technological
the same time, by optimizing production processes and energy management, we will improve energy
Opportunities
utilization efficiency and reduce unit production costs, thereby strengthening the Company's market
Greenhouse Gas Emissions per Unit of
competitiveness in the context of the green transition. tons of CO2e / million revenue 8.44
Revenue
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Implement Green Development
Environmental Compliance Emergency TCL Smart Home formulates and implements environmental emergency response plans annually as
planned. Its subsidiaries, Hefei Home Appliances and Homa Appliances, strictly adhere to the requirements
Management
Management of the Emergency Response Plan for Environmental Emergencies, complete the filing process with the local
environmental protection department, and conduct emergency drills periodically according to the plan content
to ensure the effectiveness of the emergency response plan. At the same time, the Company establishes
TCL Smart Home coordinates its subsidiaries to jointly establish an environmental management an emergency linkage mechanism with the local government to strengthen the prevention and emergency
Governance system involving multi-department collaboration. Hefei Home Appliances has established an response capabilities of environmental risks, ensuring timely and effective response to emergencies.
Environmental Safety Committee and is jointly responsible with the Human Resources Development
Based on this, Hefei Home Appliances has formulated the Emergency Response and Preparedness Control
Department for monitoring and evaluating key environmental management performance. Homa
Procedure, clarifying the emergency event management process. They regularly organize environmental
Appliances has established an environmental management framework led by the Safety Production
accident emergency drills and establish relevant environmental accident emergency systems. Monthly, they
Committee, involving collaborative participation from various relevant departments, forming an
organize personnel to conduct environmental risk and hazard investigations and remediation, aiming to
environmental management system with clear division of labor and implemented responsibilities to
enhance employees' awareness of environmental safety risk prevention and control and effectively avoid
ensure effective implementation of environmental management measures.
environmental risks. Furthermore, during the reporting period, Homa Appliances completed the revision of the
Emergency Response Plan for Environmental Emergencies and updated the process framework of emergency
TCL Smart Home adheres to the development philosophy of efficiency, low carbon, and sustainability, response plan to ensure the timeliness of the emergency response plan.
Strategy fully integrating environmental protection into all aspects of its operations. It is committed to
building and continuously improving its environmental management system to facilitate harmonious
coexistence between production and the environment. Homa Appliances adopts the principle
of "making continuous improvement in an environmentally-friendly and law-abiding way" as its
environmental protection philosophy and strategy, and integrates it into its daily operations to ensure Homa Appliances conducts emergency drills for chemical leakage
the implementation and continuous improvement of environmental protection goals.
In June 2025, Homa Appliances conducted a chemical leakage drill, with relevant emergency
response team members participating in the drill. By simulating a leakage scenario, the drill tested
and improved the emergency response, coordination, and risk control abilities of the relevant
personnel, strengthening the factory's ability to respond to sudden environmental incidents.
Stakeho- Affected
Time range of
Impact lders Main types of risks and opportunities financial
impact
affected indicators
By implementing systematic Risks: No major risks have been identified for this topic.
environmental management and
Opportunities: By implementing environmental
compliant operations, we aim
Short-term, compliance management, enterprises can reduce the
to reduce the potential adverse Self- Operating
medium- risks of penalties, production halts, or lawsuits due
impacts of production activities on operation cost
term to non-compliance, which is conducive to ensuring
the environment and maintain the
operational continuity.
quality of the regional ecological
environment.
Impact, Risk, and Opportunity Management
Environmental TCL Smart Home strictly adheres to the Environmental Protection Law of the People's Republic of
China and other relevant national and overseas operating regulations, continuously improving the
Compliance construction of its environmental management system and enhancing its environmental management
level. The production departments of Hefei Home Appliances have taken the lead in formulating
internal management systems such as the Control Procedures for Identification and Assessment of
Environmental Factors and the Control Procedures for Operation of Environmental Management
System, to standardize the identification, assessment, and operational control of environmental
factors. During the reporting period, both Hefei Home Appliances and Homa Appliances, subsidiaries
of TCL Smart Home, have obtained ISO 14001 environmental management system certification.
Emergency drills site for chemical leakage
Homa Appliances organizes annual internal audits of the environmental management system to
systematically identify environmental risks and hazards, ensuring the safety and compliance of
production operations. Based on the audit results, it sets improvement goals and optimization
measures to continuously enhance the level of clean production management.
Green Culture TCL Smart Home actively promotes the construction of a green culture, enhancing the environmental
awareness of all employees through systematic training and themed activities. Hefei Home Appliances,
Development in accordance with its annual plan, organized multiple environmental protection knowledge
Hefei Home Appliances and management trainings during the reporting period, and launched a promotional activity
covering all employees on June 5, World Environment Day. Homa Appliances regularly conducts
environmental management standard training for employees, covering key environmental areas such
Three of its factories have been awarded the title of "National Green Factory" as environmental emergency response plans and pollutant and waste management processes, to
standardize environmental operations and strengthen the building of environmental awareness.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Implement Green Development
TCL Smart Home's production and business activities are primarily concentrated in planned
Biodiversity industrial parks and existing construction land areas, without involving natural reserves, ecological
Impact, Risk, and Opportunity Management
Conservation red line areas, or sensitive areas with significant biodiversity value. The overall business activities
have a relatively limited direct impact on ecosystems and biodiversity. During production operations Energy Management TCL Smart Home strictly adheres to relevant laws and regulations such as the Energy
and project construction, the Company strictly complies with relevant national and local laws and Conservation Law of the People's Republic of China, and continuously improves the group's
regulations on ecological and environmental protection, legally performs environmental impact energy management system. During the reporting period, Hefei Home Appliances obtained
assessments and related approval procedures, and reduces the potential impact of production ISO 50001 energy management system certification.
activities on the surrounding ecological environment by implementing pollution prevention, resource Homa Appliances Hefei Home Appliances actively promotes the construction of photovoltaic energy storage
conservation, and environmental risk control measures.
projects to reduce the impact of power curtailment during peak periods and ensure stable
Has developed a photovoltaic power
energy supply for production. Simultaneously, it improves energy utilization efficiency by
generation project with a total
applying measures such as waste heat recovery technology for refrigerator air compressors,
installed capacity of approximately
continuously reducing energy consumption. Furthermore, Hefei Home Appliances
Indicators and Targets gradually expands the scale of green electricity use, synergizing efforts from both energy
mix optimization and energy efficiency improvement to drive a continuous decline in
Targets Progress during the reporting period operational carbon emissions.
Homa Appliances has formulated the Energy Management Measures and Management
• Optimize environmental management mechanisms, • No major environmental accidents have occurred. Annual power generation is
Measures for Energy Consumption of Key Machines, clarifying energy management
improve risk identification and prevention control approximately
• No environmental lawsuits resulting from violations of responsibilities and requirements for controlling energy consumption of key equipment,
measures, and continuously reduce the impact of environment-related regulations have occurred. in order to achieve systematic control of energy consumption in production processes.
production and operation on the environment. To further strengthen the energy management responsibility mechanism, Homa
• No environmental penalties have been imposed.
• Regularly organize environmental protection training Appliances has incorporated energy-saving goals into its performance evaluation system,
• The total investment in environmental protection
to enhance employees' awareness of environmental implementing monthly statistics and quarterly assessments. At the same time, it promotes
amounts to 3.62 million RMB.
protection. Estimated annual cost savings of the application of energy-saving lighting temperature control equipment and clean
approximately production technologies, integrates carbon emission factors into product design, and builds
an energy-saving system covering operations and products. During the reporting period,
Homa Appliances constructed a photovoltaic power generation project with a total installed
Energy and Resource Management
capacity of approximately 9.88 MW, generating an annual electricity output of approximately
TCL Smart Home has guided its subsidiaries, Hefei Home Appliances and Homa Appliances, to
TCL Smart Home
Governance establish energy management systems respectively. Hefei Home Appliances has set up an energy Self-consumption photovoltaic power generation 23,701,684kWh
management team and an executive team, with clear division of responsibilities and collaborative Purchased green electricity 32,845,709.50 kWh
advancement, achieving comprehensive coverage of the energy management system in the
production base. Homa Appliances has established an Energy Management Committee, led by the
committee director and deputy director, with an energy office under its jurisdiction, guiding and
supervising the implementation of energy management system and energy-saving technological
transformation work by the energy management team members of the Equipment Department, Homa Appliances builds a digital and intelligent energy management system
department heads, and equipment section chiefs of each branch factory.
During the reporting period, Homa Appliances introduced a smart energy management
monitoring platform and a large screen for real-time display of energy consumption,
TCL Smart Home is committed to reducing dependence on fossil fuels, adopting various energy replacing the traditional manual meter reading mode. This has enabled automated
Strategy management measures, actively promoting energy-saving technologies and equipment, and collection, information management, and visual monitoring of energy consumption
improving energy conversion and utilization efficiency through optimizing energy mix and usage data. This measure has effectively improved the level of precision in energy management
patterns, technological innovation, and industrial upgrading, thereby contributing to sustainable and provided data support for continuous energy efficiency analysis and optimization.
development.
Stakeho- Affected
Time range
Impact lders Main types of risks and opportunities financial
of impact
affected indicators
Risks: If the efficiency of energy and resource
Improve the efficiency Upstream utilization is not sufficiently improved, enterprises
of energy and resource value may face the risks of rising production costs and
utilization, effectively Short- chain increased uncertainty in resource supply.
reduce dependence on and term, Operating
consumption intensity of non- medium- Self- Opportunities: By improving energy efficiency, cost
renewable resources, and term operation optimizing resource allocation, and gradually
reduce the pressure on the introducing clean energy, enterprises can reduce
environment. unit costs and enhance the controllability of
resource utilization. Homa Appliances Energy Management System
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Implement Green Development
Water Resources TCL Smart Home attaches great importance to water resource protection, strictly complies with laws and
regulations such as the Water Pollution Prevention and Control Law of the People's Republic of China, Hefei Home Appliances conducts water resource risk identification
Management the Action Plan for Prevention and Control of Water Pollution, and the Integrated Wastewater Discharge and quantitative management practices
Standard of the People's Republic of China, adheres to the principle of prioritizing water conservation,
and enhances water use efficiency. In production and operation, the Company's water usage mainly In 2025, Hefei Home Appliances established a "Identify-Assess-Respond" management mechanism
includes laboratory testing, production testing, domestic use, and fire protection, and all water sources centered around water resource topics, covering key aspects of production operations and supply chains.
are municipal water supply; therefore, there is no issue regarding the sourcing of suitable water. By combining regional water resource risk tools with operational data analysis, it identifies potential
Hefei Home Appliances impacts brought by water resource pressure, extreme climate, and regulatory changes, and conducts cost
To strengthen water resource management, reduce the reliance of operational production on water
and operational scenario assessments to provide a basis for management decisions.
resources, and protect regional aquatic ecosystems, Hefei Home Appliances systematically screens and
Cumulative water saving Based on the identification results, Hefei Home Appliances implements hierarchical control over high-
manages topics related to water resources, comprehensively promotes water resource risk assessment
and management, and is committed to improving water resource utilization efficiency through water risk areas, incorporates major water risks into the priority treatment list, and coordinates the promotion
resource recycling, aquatic ecosystem restoration in the factory area, and R&D and innovation of water- of water conservation renovation, water use efficiency improvement, and supply chain collaborative
management. Furthermore, through community communication and information disclosure mechanisms,
saving products. Homa Appliances has incorporated water consumption and water conservation
it incorporates feedback from stakeholders into water conservation targets and improvement plans,
indicators into its existing energy consumption assessment system, and has achieved refined control
continuously strengthens the resilience of water resource management, and forms a dynamically
of water use efficiency through measures such as conducting water balance tests. During the reporting optimized closed-loop governance system.
period, Hefei Home Appliances saved approximately 1.2 million tons of water.
A series of products from Hefei Home Appliances have obtained the "Grade 1 Water Efficiency"
certification for China Water Efficiency Label and meet international water conservation standards
Water resource management measures throughout the entire lifecycle
of Hefei Home Appliances
• Conduct risk assessment based on the Aqueduct Water Risk Atlas of the World Resources Recycling TCL Smart Home actively complies with the Circular Economy Promotion Law of the People's Republic of China
Institute (WRI) and the Regulations for the Administration of the Recovery and Disposal of Waste Electric and Electronic Products,
Water resource risk
and continuously promotes resource recycling in aspects such as product design, material selection, packaging
assessment • Conduct financial quantification of water resource-related impacts in accordance with the management, and recycling systems, centered around the concept of circular economy.
European Sustainability Reporting Standards (ESRS)
Among them, Hefei Home Appliances conducts impact and risk assessments of recycling utilization, identifies action
priorities, updates product design specifications, and formulates circular economy project plans. In practice, Hefei
• Product innovation design: Promote the R&D of technology for low-water or water-free Home Appliances incorporates the maintainability, recyclability, and upgradeability of products into the design
applications stage, enhancing product maintainability and service life through modular design. At the same time, the Company
• Intelligent management: Installing smart water meters and monitoring systems at prioritizes the use of sustainable materials such as recyclable metals, recyclable plastics, and straw in material
selection for products, reducing dependence on primary resources.
Water conservation production bases
at the source • Rainwater recycling: Promote the use of rainwater collection for non-industrial purposes In the product usage and recycling process, TCL Smart Home promotes closed-loop resource management, leading
such as greening irrigation Hefei Home Appliances and Homa Appliances to establish a used appliance recycling mechanism. They launch a
trade-in service on their official website and major sales platforms, encouraging consumers to participate in product
• Water conservation advocacy: Launch internal water conservation awareness campaigns for recycling and reuse. In terms of production operations and supply chain management, Hefei Home Appliances
employees enhances the level of packaging recycling by reducing the use of cardboard boxes, promoting recyclable packaging
utensils, and specialized tooling vehicles. Meanwhile, Homa Appliances has formulated the Supplier Packaging
• Production wastewater treatment: Implement a water reuse system at the production base Recycling Management Measures to standardize the unified recycling and management of supplier packaging and
tooling utensils, further improving the recycling rate of packaging materials.
to avoid disposable water usage
• Product water circulation technology: Some high-end washing machines are equipped with
Recycling and reuse
water circulation modules, enabling the filtration and reuse of water from a single wash Indicators and Targets
• Supply chain collaboration: Require suppliers to provide supporting water resource recycling
facilities and promote water conservation in the industrial chain Targets Progress during the reporting period
• Sewage management: The purification treatment of production wastewater shall be carried • The total comprehensive energy consumption is 40,532.35
• Organize and carry out energy-saving technological tons of standard coal equivalent (tce), and the energy
out to a standard higher than the local standard transformation activities and continuously improve energy consumption intensity is2.19 tce/million revenue.
• Ecological cooperation projects: Participate in public welfare wetland protection or river and resource efficiency through technological upgrading and
enhanced refined management. • Clean energy consumption is 6,949.67 tons of standard
Water ecosystem restoration restoration projects, and improve regional water ecology through financial or technological coal equivalent (tce), accounting for 17% of total energy
investment • Continue to promote the optimization of the energy mix and consumption..
increase the proportion of clean energy. Hefei Home Appliances
• Plastic reduction: Reduce the use of plastic in product packaging, prevent plastic particles • The comprehensive indicators of water, electricity, and gas for
has set a target for green electricity, which is expected to reach
from entering the ocean, and protect aquatic ecosystems Homa Appliances have decreased by 10% compared to 2024,
and the set target for 2025 is a decrease of 2.5%.
• Regionalized water conservation strategy: Prioritize the deployment of water recycling
• Total water withdrawal is 1,840,843 m?, and water
equipment in factories located in water-scarce areas • Improve the resource management system and promote withdrawal intensity is 99.34 m? /million revenue.
• Water resource risk assessment: Conduct special audits on production bases in high-water a series of measures to optimize water efficiency in
Production management • Homa Appliances utilized 46,000,000 m3 of recycled water
production.
and investment in water risk areas and formulate emergency response plans (grey water).
resource risk areas • Carry out public welfare projects: Build water reservoirs for local communities, donate water-
saving equipment, and enhance the resilience of surrounding water resources • Continuously promote the substitution of renewable
• Carry out recycling and reduce the one-time use and
materials, strengthen the recycling and reuse of old
• Technology R&D focus: Launch ultra-water-saving products for arid markets consumption of resources.
products, and improve resource utilization.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Implement Green Development
Pollution and Waste Management Wastewater Management TCL Smart Home strictly adheres to regulations such as the Water Pollution
Prevention and Control Law of the People's Republic of China, the Action Plan
for Prevention and Control of Water Pollution, and the Integrated Wastewater
TCL Smart Home leads its subsidiaries to continuously improve their management systems Discharge Standard of the People's Republic of China. In the process of wastewater
Hefei Home Appliances
Governance to implement pollutant control and reduce environmental risks. Hefei Home Appliances has management, TCL Smart Home conducts standardized disposal, monitoring, and
established an environmental protection management team, with the general manager serving Increased water reuse rate by reporting of major wastewater pollutant indicators such as Chemical Oxygen Demand
as the team leader, and subordinate a deputy team leader and an executive team leader. Special (COD), Biochemical Oxygen Demand, ammonia nitrogen, petroleum compounds,
personnel are assigned to manage each department to ensure pollution and waste emissions meet total nitrogen, and suspended solids.
standards.
Hefei Home Appliances has formulated the Wastewater Management System in
accordance with the Hefei Water Environment Protection Regulations, implemented
Adhering to the concept of green production, TCL Smart Home has incorporated pollutant Decreased total COD emissions from a three-tier management mechanism, and established a digital monitoring platform.
Strategy wastewater by It regularly conducts environmental monitoring and information disclosure, and
and waste management into its corporate environmental governance system. Focusing on key
environmental factors such as exhaust gas, wastewater, solid waste, and noise, it has established continuously improves its environmental protection system and management
a systematic management mechanism and continuously optimized control measures to drive structure. Referring to the ISO 14001 environmental management system and
continuous improvement in environmental performance. international industry standards, Hefei Home Appliances implements internal control
requirements for core sewage control indicators that are stricter than national
first-level standards, and entrusts professional third parties to carry out advanced
treatment to ensure stable and compliant emissions. At the same time, it implements
graded management in the factory area, conducts assessments of the water
environment carrying capacity of river basins, enforces stricter emission controls in
Stakeho- Affected
Time range
key areas such as water sources and ecological protection zones, and systematically
Impact lders Main types of risks and opportunities financial
of impact
affected indicators
reduces the impact of sewage discharge on the environment.
Strengthen the control of Risks: Enterprises may face risks such as
pollutants and standardized increased penalties, rectification, or disposal
Compliance
management of waste to reduce costs. Additionally, the lack of effective Wastewater treatment measures for Hefei Home Appliances
cost
the impact of production and Self- management of hazardous waste emissions at
Short-term
business activities on the operation the source may lead to higher treatment costs. Operating
surrounding environment, while • Implement green production process transformation to reduce pollutant generation
cost
promoting resource recycling Opportunities: No major opportunities were • Promote environmentally friendly materials such as phosphorus-free cleaning agents and
and reuse. identified for this topic. Source control water-based paints
• Establish a material balance ledger to track the flow of pollutants
• Collection by zones and treatment based on quality: Classify and treat production
Impact, Risk, and Opportunity Management wastewater according to its pollution level
• Online monitoring of key process points: Install real-time monitoring equipment in processes
Process management
such as electroplating and spray painting
Air Pollution TCL Smart Home strictly adheres to the Environmental Protection Law of the People's Republic of China, the • Automated dosing system: Intelligently adjusting treatment parameters based on water
Atmospheric Pollution Prevention and Control Law of the People's Republic of China, the Cleaner Production quality monitoring data
Management Promotion Law of the People's Republic of China, as well as national and local laws and regulations such as
the Emission Standard of Air Pollutants for Industrial Kiln and Furnace, the Emission Standard of Pollutants for
• "Pre-treatment + Biochemical treatment + Advanced treatment" three-stage treatment
Synthetic Resin Industry, and the Emission Standard for Odor Pollutants. It has established a comprehensive
process
waste gas emission management mechanism, which ensures appropriate treatment of major air pollutants
through source prevention and control, process control, and end-of-pipe treatment, while continuously improving • MBR membrane bioreactor, advanced oxidation and other advanced technologies are
End-of-pipe treatment
applied in water reuse system
monitoring and reporting processes.
• Part of the treated water is recycled for plant greening, flushing, and other activities in the
TCL Smart Home implements strict control and management of pollutants such as nitrogen oxides, sulfur dioxide, factory area
particulate matter, and volatile organic compounds (VOCs) in exhaust gas, ensuring that all emission indicators
fully meet the environmental protection standards of the country and the region where it operates, achieving
• Construct an emergency pool with a capacity equal to or greater than the 24-hour emission
volume
Hefei Home Appliances strictly complies with local environmental regulations such as the Regulations of Anhui Emergency management • Regularly carry out emergency drills for leakage, excessive emissions, etc.
Province on Prevention and Control of Air Pollution and the Regulations of Hefei on Prevention and Control • he redundant design of key equipment ensures the continuous operation of the processing
of Air Pollution, and has developed more stringent internal emission standards based on these requirements. system
Corresponding internal systems have also been established to ensure that all production activities meet pollutant
emission standards. During the reporting period, Hefei Home Appliances continued to advance air pollution
prevention and control by introducing low-pollution processes such as laser engraving to reduce the generation
of volatile pollutants. In addition, it upgraded and renovated its exhaust gas treatment facilities to further reduce
pollutant emission concentrations. Through a combination of technological R&D, process improvements, and Homa Appliances has established a comprehensive wastewater management system based on the Wastewater and Waste Gas
raw material substitution, Hefei Home Appliances has continuously enhanced its air and water pollution control Management Measures, implementing systematic control over production and domestic wastewater, and constructing a multi-
capabilities, driving steady improvements in its emission performance. level management system encompassing indicator management, online monitoring, and emergency response. Homa Appliances
regularly entrusts qualified third-party organizations to conduct wastewater monitoring and provides professional maintenance
Homa Appliances strictly adheres to regulatory requirements such as the Emission Limits of Air Pollutants of
Guangdong Province, and has established internal systems like the Wastewater and Waste Gas Management for the online monitoring equipment at the wastewater treatment station to ensure the stable operation of the monitoring system.
Measures to systematically standardize waste gas management and risk prevention. Additionally, Homa Appliances In response to non-compliance issues identified during monitoring, the Company strictly follows the Procedures for Corrective and
formulates annual waste gas monitoring plans, commissions third-party inspections, and generates reports. Based Preventive Measures to carry out rectification, suspend discharges, and recover abnormal wastewater for reprocessing, ensuring
on these, each factory clarifies emission points and impact areas, supporting refined control of air pollutants. that the entire wastewater discharge process is controlled and compliant.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Implement Green Development
Waste Management TCL Smart Home strictly adheres to laws and regulations such as the Law of the People's
Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes,
Indicators and Targets
the Standard for Pollution Control on Hazardous Waste Storage, and the Technical Specification
for Setting Identification Signs of Hazardous Waste, implementing classified management Targets Progress during the reporting period
of waste. The Company conducts standardized disposal of hazardous waste and classified
recycling of general waste, actively promoting waste reduction and resource recycling measures
while ensuring legal compliance throughout the entire process. • Emissions of atmospheric pollutants, wastewater, waste,
and noise all meet the standards.
Guided by the principles of "source control, low emissions, low pollution, and zero • Ensure compliant discharge of waste gas, wastewater, and
landfill", Hefei Home Appliances focuses on the full lifecycle management of emissions. By waste. • No significant impact on employees, local community
strengthening multiple measures such as waste classification, recycling, and utilization, residents, and other groups has been observed due to
it continuously reduces the environmental impact of its operations. To strengthen the pollutant emissions.
implementation of waste management responsibilities, Hefei Home Appliances has formulated
the Environmental Aspect Identification and Evaluation Management Specification, clarifying
the list of key hazardous wastes and the organizational structure for waste management.
• The total emission of atmospheric pollutants is
It has established a cross-departmental coordination mechanism, where the supply chain
is responsible for waste storage and external disposal, each factory implements compliant
treatment, and the Human Resources Development Department conducts performance • The total amount of wastewater discharged was 268,578
monitoring to ensure efficient and orderly operation of waste management work. tons, with an emission strength of 14.49 tons/million
• Continuously reduce the generation of pollutants from revenue.
Homa Appliances is committed to strengthening material management in the production the source and enhance the recycling and utilization
process, reducing waste and minimizing waste generation, and strictly enforcing rate of wastewater and waste. Among them, Hefei Home • The total waste emissions are 14,609.99 tons, with an
compliance disposal regulations for all hazardous waste to ensure no emission risks to the Appliances is committed to achieving a waste recycling emission strength of 0.79 tons/million revenue.
external environment. In accordance with relevant national laws and regulations, Homa rate of 99.9% by 2030.
Appliances has established internal systems such as the Waste Classification List and Waste • Part of the treated water from Hefei Home Appliances is
Management Measures, and has established a management system covering the entire used for plant greening, washing, etc., with a reuse rate of
lifecycle of waste, exercising strict control over all aspects from generation, classification, 30%.
temporary storage, transportation to final disposal.
Types of main pollutants and handling methods
Waste type Major contents Handling methods
Waste metal, waste plastic, waste paper,
General recyclable wastes Commission qualified units for disposal
waste wood, etc.
General nonrecyclable wastes Domestic waste, construction waste, etc. Commission qualified units for disposal
Electronic wastes
Store in hazardous waste warehouse,
Hazardous wastes Waste packaging drums, surface and commission qualified hazardous
treatment sludge, surface treatment waste disposal agencies for disposal
waste liquid, waste resin, etc.
Noise Management TCL Smart Home strictly adheres to national and local regulations and standards such
as the Law of the People's Republic of China on Noise Pollution Prevention and Control
and the Emission Standard for Industrial Enterprises Noise at Boundary of Guangdong
Province. It also leads its subsidiaries in establishing a noise control system, implementing
comprehensive measures centered around source vibration reduction, transmission
isolation, and regular monitoring, and is committed to reducing the impact of operational
noise on the surrounding environment.
Among them, Hefei Home Appliances has formulated the Noise Management System to
systematically control noise pollution by installing sound-absorbing cotton in the crushing
room and regularly conducting environmental noise monitoring. Homa Appliances has
formulated the Noise Emission Management Measures and, in accordance with these
measures, has carried out sound insulation and anti-vibration treatment for some
workshops, installed mufflers on equipment, set up enclosed rooms, and carried out
regular maintenance of production equipment. Additionally, it conducts noise monitoring
in the working environment, taking multiple measures to reduce noise emissions.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Lead Product Responsibility
Lead Product
Responsibility
TCL Smart Home has always adhered to sustained technological
innovation and excellent product quality as the foundation of its
development, striving to become a globally leading smart home
appliance enterprise. Meanwhile, the Company continues to delve
deeply into product responsibility, production efficiency, and customer
service, creating a high-quality smart living experience for consumers.
QUALITY 32
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Lead Product Responsibility
R&D and Innovation Impact
Time
range of
Stakeho-
lders Main types of risks and opportunities
Affected
financial
impact affected indicators
Through technological Short- Upstream Risks: No major risks have been identified for this topic.
TCL Smart Home has established a R&D management system with clear division of labor and responsibilities, term Operating
Governance innovation and the value chain
focusing on product research and technological innovation. Its subsidiaries, based on their own business transformation of research Opportunities: Enterprises continue to promote R&D income
positioning, have formed research and development organizational structures that match their product lines. achievements, intelligent and Self- and innovation, expand market space, respond to
medium- R&D
green products are promoted operation emerging demands such as green products and intelligent
Hefei Home Appliances has established a washing machine R&D center and a refrigerator R&D center to term investment
to implement, enhancing the manufacturing, and introduce innovative technologies to
conduct R&D work centered around key product performance. Each R&D center is responsible for formulating user experience and resource Downstream optimize resource utilization and production operations,
product technology development strategies, building R&D system capabilities, and promoting product efficiency of end products. long-term value chain achieving cost reduction and efficiency improvement.
development and performance verification to ensure product performance and quality.
Homa Appliances has established a Technology Research Institute, which is directly managed by the Impact, Risk, and Opportunity Management
Company and headed by a Vice President of Technology responsible for the daily management of various
departments within the institute. Each business department is specifically implemented by its head.
TCL Smart Home has established a comprehensive R&D funding guarantee mechanism.
Additionally, Homa Appliances has set up three R&D units: an enterprise R&D center, a provincial industrial Innovation-Driven
Through multiple channels such as annual budget special arrangements, industry-academia-
design center, and a laboratory accredited by CNAS, focusing on functions such as air-cooled product research cooperation support, and government project support, it has carried out systematic
development, industrial design, and performance testing, forming an organizational system that integrates layout focusing on key technological directions such as smart home appliances, energy
R&D, design, and testing. During the reporting period, Homa Appliances has obtained multiple core TCL Smart Home conservation and environmental protection, and green manufacturing optimization. By
qualifications including national high-tech enterprise, national industrial design center, provincial industrial improving the R&D organizational structure and resource allocation mechanism, it accelerates
design center, provincial enterprise technology center, provincial engineering technology research center, R&D personnel the transformation and application of innovation achievements.
and laboratory accredited by CNAS.
Assessment and Incentive Plan and the Implementation Terms of Reference for the Science
and Technology Innovation Award, regularly organizes scientific and technological innovation
R&D personnel percentage activities, and encourages employees to actively participate in technological innovation.
Industrial entity Name of R&D center R&D direction The refrigerator R&D center focuses on eight core directions: freshness preservation, high
energy efficiency, aesthetic design, thin built-in design, ice water technology, noise reduction
Eight core directions: freshness preservation, high energy efficiency, aesthetic technology, intelligence, and exquisite design, continuously carrying out technological
Refrigerator R&D
design, thin built-in design, ice water technology, noise reduction technology, breakthroughs and R&D innovation to continuously improve product quality and user
center R&D investment
intelligence, and exquisite design experience. The washing machine R&D center focuses on seven major R&D directions: platform,
Hefei Home
washing, drying and care, appearance and craftsmanship, noise reduction, health, energy
Appliances
Focusing on seven core directions: platform, washing, drying and care, conservation and environmental protection, and intelligence, systematically improving the
Washing machine product technology system and consolidating the foundation of R&D innovation.
appearance and craftsmanship, noise reduction, health, energy conservation
R&D center YoY Growth
and environmental protection, as well as intelligence
Embedded product development, air-cooled product development, fully- 5.86%
disassembled product development, efficient energy-saving technology The laboratory of washing machine R&D center (Phase I) of
Enterprise R&D center Hefei Home Appliances has been officially put into use
research, process efficiency improvement, cost savings and consumption
reduction
In December 2025, the laboratory of washing machine R&D center (Phase I) of Hefei Home
Appliances was officially put into use. The laboratory will establish a closed-loop system
Homa Appliances Provincial industrial Product appearance design, panel material application, interior design, and
centered around "technology R&D - experimental verification - achievement transformation",
design center screen printing design strengthen technological breakthroughs and product verification capabilities, and continuously
enhance technological innovation capabilities.
Laboratory accredited The laboratory of washing machine R&D center (Phase I) is primarily equipped with core testing
Product performance testing, and product safety and stability testing equipment that can cover multiple national technical standards. It has also established a joint
by CNAS
research area for domestic stains and care with Donghua University, focusing on conducting
specialized research around fabric and stain characteristics. Additionally, plans are in place to
build an AI software laboratory and introduce automated testing systems to simulate tests such
as water level and temperature, thereby enhancing R&D efficiency. In the future, the laboratory
will concentrate on tackling core care technologies and washing algorithms, deepening AI-
Adhering to the "leading technology" strategy, TCL Smart Home continues to increase R&D investment enabled product iteration, refining the full-process quality verification system, and exploring
Strategy cutting-edge directions such as intelligent connectivity and green low-carbon technologies,
and innovation layout in key technological fields such as smart home appliances, energy conservation and strengthening core patent reserves and technological competitiveness.
environmental protection, and green manufacturing, actively promoting the deep integration of technological
innovation and green sustainable development. The Company is customer-oriented, continuously enhancing
product R&D and innovation capabilities, attaching importance to the management and protection of intellectual
property rights, and promoting the simultaneous improvement of product performance and quality.
Meanwhile, Hefei Home Appliances, with its core R&D system of "demand-driven and pragmatic innovation",
continuously carries out technological innovation in directions such as freshness preservation, high energy
efficiency, aesthetic design, thin built-in design, water technology, noise reduction technology, intelligence,
and exquisite design, enhancing product functionality and user experience. Homa Appliances follows the R&D
philosophy of "innovative technology, people-centric approach, rationality and practicality", focusing on the
alignment between embedded products and user usage scenarios, continuously improving the structure of the air-
cooled product line, and meeting the needs of different types of customers.
Visit to the laboratory of washing machine R&D center (Phase I)
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Lead Product Responsibility
In addition, TCL Smart Home continuously deepens the user-oriented concept in product
Awards and honors of Hefei Home Appliances products design and technological innovation, integrating accessibility and scenario-based design
while ensuring the basic performance of products. Hefei Home Appliances equips washing
machine products with child lock function to enhance the safety of children's use, and
Awarded by Honor
adds braille markings on the control panel to provide operational convenience for visually
impaired users. Homa Appliances optimizes product functions and interactive experiences
China Household Electrical Appliances differentiated needs.
Research Institute 2025 China Household Appliances Innovation Award "Product
Innovation of the Year" Award
The built-in nursery refrigerator of Homa Appliances selected into the first batch of recommended
Consumer Technology Association (CTA) Clean Technology Innovation Gold Award catalogues for the New National Energy Efficiency Standards
TCL Super Drum Series Front Load Washing Machine
In December 2025, the 6th Electrical Appliance Industry Chain Ecological Cooperation
Organizing Committee of Appliance & Conference, guided by the Department of Industry and Information Technology of
Electronics World Expo/China Household 2025AWE Award-Innovation Award R515T15-UQBS Guangdong Province and the Department of Commerce of Guangdong Province, and
Electrical Appliances Association co-hosted by the China National Electric Apparatus Research Institute and the China
Electrical Equipment Industry Association, was held. The conference officially released
Healthy Thin Built-in Aesthetics Leading Brand Award the Recommended Catalogue of First Batch of Products that Meet the New National
Energy Efficiency Standards for Electrical Appliance and Motor, and the built-in mother
Organizing Committee of China and baby refrigerator of Homa Appliances was successfully selected, becoming the
Ice Kylin - Molecular Magnetic Freshness Original Product Award
Refrigerator Industry Summit Forum first representative product in the nursery sub-category to pass the new national
standard certification.
Cold Jelly – Thin Built-in Ice-Making Pioneer Product Award
Focusing on the three core needs of families with newborn—precision storage,
health protection, and energy efficiency with low noise—Homa Appliances has
National Household Appliances Industry
Innovative Pioneer Award for Thin Built-in Ice Making R456T9-DQB launched a built-in nursery refrigerator through large-scale user research, forming
Information Centre
triple advantages in energy efficiency, functionality, and design. The product meets
the new national first-level energy efficiency standard, with a comprehensive
AI Super Drum Washing and Drying Set T7R power consumption of only 0.89 kWh per 24 hours. Equipped with an intelligent
China Household Clothes Washing, Drying
three-frequency conversion system, it achieves low power consumption and stable
and Care Industry Summit Forum
Outstanding channel performance product G100T7R-HDIS temperature control. It is equipped with an 82L independent temperature-adjustable
compartment for mother and baby, supporting wide temperature adjustment from
-20 ℃ to 5 ℃ . Made of bottle-grade materials and utilizing sterilization technology, it
Organizing Committee of Red-top Award The 17th Red-top Award RED-TOP Nomination Award for T7RUltra-T The built-in nursery refrigerator
ensures the healthy storage of mother and baby ingredients. With a heat dissipation of Homa Appliances selected into
and ultra-thin body design, it achieves zero-distance integration and convenient door the first batch of recommended
opening, balancing space utilization and user experience. catalogues for the New National
Energy Efficiency Standards
Homa Appliances boasts a comprehensive R&D management system. During the reporting
period, the Company has formulated procedural documents such as the Design and
Development Control Procedure and the Product Order Control Procedure. Additionally,
it has compiled a series of management documents, including the Management Measures
of New Product Trial Production, Technical Document Management Measures, Technical Hefei Home Appliances' original molecular magnetic freshness technology wins the special award of the
Center Performance Evaluation System, and Management Measures of R&D Investment Science and Technology Award of the China General Chamber of Commerce
Accounting. These documents integrate the management of the Company's technological
innovation activities into its daily business operations, ensuring the effective operation of
In July 2025, the results of the 2024 China General Chamber of Commerce Science
the Company's innovation mechanism.
and Technology Award were announced. The project "Key Technology of Food
Meanwhile, in order to stimulate the innovation vitality of technical personnel, Homa Freezing and Refrigeration Preservation Based on Magnetic Field Biological Effects
Appliances has formulated incentive measures such as the Product Development Incentive and Household Appliance Industrialization", jointly completed by TCL Home
Measures and the Technical Pre-research, Acceptance, and Incentive Management Appliances (Hefei) Co., Ltd. and Jiangnan University, won the Special Award for
Measures. By setting up technological innovation awards, quarterly awards for cost Technological Invention. This award is approved and established by the Ministry
savings and energy consumption reduction, and recognition of technical pacesetters, the of Science and Technology and the National Office for Science and Technology
Company fully mobilizes the innovation enthusiasm of the technical team. Additionally, Awards. Only six projects nationwide were selected for this year's Special Award for
Homa Appliances has conducted in-depth exploration in the fields of product energy-saving Technological Invention.
control technology, application of new materials and processes, and product cost savings The award-winning project is centered around TCL Refrigerator's original "Molecular
and consumption reduction, achieving efficient resource utilization while comprehensively Magnetic Freshness" technology, which utilizes the biological effects of magnetic
enhancing market competitiveness. fields on food cells to reduce metabolic loss, delay the spoilage process, and achieve
precise preservation under refrigeration and freezing conditions. The relevant
technology has been applied in product development and, combined with scenario-
based design, has been promoted for industrial implementation, driving the
upgrading of preservation technology from traditional temperature control mode to
Awards and honors of Homa Appliances products
multi-dimensional regulation.
Awarded by Honor
Hefei Home Appliances wins the
Zhongshan Bureau of Industry and Bronze Award in the Comprehensive Competition of the 2025 special award of the Science and
Information Technology Zhongshan Industrial Design Competition (Product Design Group) Technology Award of the China
General Chamber of Commerce
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Lead Product Responsibility
TCL Smart Home attaches great importance to intellectual property protection, strictly complies
Intellectual with laws and regulations such as the Patent Law of the People's Republic of China and the
Industry Standard Achievements of TCL Smart Home
Property Implementation Regulations of the Patent Law of the People's Republic of China, establishes
Protection a professional patent application team and a full-process management mechanism, regularly Industrial entity Standard type Standard title
conducts training related to intellectual property, and promotes the institutionalization and
standardization of intellectual property protection work. During the reporting period, TCL Group standard Slowly melting ice
Smart Home did not experience any major intellectual property infringement incidents.
Hefei Home Appliances has formulated the Measures for the Administration of Patents Group standard Clean ice
Hefei Home
and Software Copyrights, which clarifies requirements for patent application, ownership
Appliances
management, confidentiality management, and violation handling. It has also appointed Group standard Preservation in tea area
full-time intellectual property management personnel to cover various aspects such as R&D,
production and manufacturing, and market sales. Hefei Home Appliances has established a full-
Group standard Preservation of Ganoderma lucidum in dry area
lifecycle patent management system that encompasses patent search and layout, application
confirmation, classification maintenance, and operational rights protection. Through
systematic training, it continuously enhances employees' awareness of intellectual property TCPQS E00079.1-2025: Evaluation of Hygienic and Healthy Freshness for
Group standard
protection and management capabilities. Before R&D, patent search and risk assessment are Refrigerators - Part 1: Technical Requirements for Meat Freshness Evaluation
conducted. During the R&D process, confidentiality agreements, technical document access
management, and node review mechanisms are implemented. Additionally, cooperation TCPQS E00079.2-2025 Evaluation of Hygienic and Healthy Freshness for
with professional agencies is established to improve the quality of patent applications and Homa Appliances Group standard Refrigerators - Part 2: Evaluation of Antimicrobial, Bactericidal, and Odor
authorization efficiency. Meanwhile, Hefei Home Appliances has established an intellectual Removal Effects
property risk prevention and control mechanism to avoid similar designs and obtain patent
licenses when necessary, thereby minimizing the risk of infringement. GB 12021.2-2025: The Maximum Allowable Values of the Energy Consumption
National standard
Homa Appliances has established a full-process intellectual property management system and Energy Efficiency Grade for Household Refrigerators
covering R&D, process, and production. It has formulated and continuously improved
institutional documents such as the Patent Management Measures and the Document
and Record Control Procedure, clarifying the norms for patent application, review,
confidentiality, and archive management. During the reporting period, it further refined the Hefei Home Appliances has established a collaborative innovation system of "industry-
patent management requirements. At the same time, it has appointed full-time intellectual academia-research", and has carried out multiple key technological collaborations
property management personnel to coordinate patent application, maintenance, and risk with Jiangnan University, University of Science and Technology of China, Xi'an Jiaotong
control work. It has also established a long-term cooperation mechanism with professional University, and TCL Hong Kong Research Institute, including scanning electric pulse thawing
agencies to improve the quality of patent applications and dispute resolution capabilities. technology, energy-saving application of energy storage materials, stepless frequency
conversion technology, and array-based odor sensing research. During the reporting
Since the initiation of its own brand building, Homa Appliances has continuously improved period, Hefei Home Appliances conducted two technological ecosystem collaborations with
its patent operation mechanism and incentive mechanism, strengthened the awareness of Donghua University, focusing on research to reduce detergent usage and minimize energy
intellectual property among all employees, enhanced the patent literacy of management consumption through precise drying care.
and R&D personnel through regular training, strengthened the whole-process management
of patent application, maintenance, and utilization, actively participated in the formulation In terms of industry research, Hefei Home Appliances has completed two technical
of industry standards and intellectual property cooperation, and promoted the effective appraisals, namely "Key Freshness Technology for Multi-effect Regulation of Refrigerator
transformation of technological achievements and collaborative industrial development. Cold Storage Micro-environment" and "Industrialization and Application of New Generation
Bionic Wing Condenser Technology". It has participated in the formulation of four group
standards and won one national award. Furthermore, focusing on improving the energy
efficiency of washing machines, Hefei Home Appliances has released the White Paper on the
Development of AI Smart Washing and Care Technology for Washing Machines, exploring
technologies centered around AI empowerment and green, low-carbon directions.
Homa Appliances Conducts Intellectual Property Training
In April 2025, in order to strengthen the awareness of
intellectual property protection among employees across
various departments, Homa Appliances organized a Hefei Home Appliances and Hongbaoli Joint Innovation Laboratory Officially Unveiled
specialized training session on intellectual property. The
training focused on intellectual property protection, patent
application processes, and R&D compliance management, In December 2025, Hefei Home Appliances and Hongbaoli
Group, a leading enterprise in polyurethane new materials,
and was targeted at employees from the R&D and related
held the unveiling ceremony of their joint innovation
departments, with a total of 42 participants.
laboratory in Nanjing. This strategic cooperation centers
on the core mission of "conquering ultimate insulation
technology to drive energy efficiency leaps in the home
appliance industry". It focuses on breakthroughs in the
Homa Appliances Intellectual Property Training Venue insulation performance of polyurethane foam materials,
precisely tackling the dual challenges of industry energy
efficiency upgrades and environmental transformation.
Driven by technological innovation, TCL Smart Home actively participates in the formulation Through an industrial chain collaboration model of
Industry "technology co-creation + talent co-cultivation + results
of industry standards, promoting industry standardization and high-quality development.
Development The Company has been involved in multiple industry standard setting and technical exchange sharing", it establishes an industry benchmark for cross-
activities, facilitating the process of industrial technology upgrading and standardization. sector cooperation to break through industrial bottlenecks.
Meanwhile, TCL Smart Home continues to build an open cooperation platform, deepening Unveiling ceremony of Joint Innovation Laboratory
collaborative cooperation with research institutions and industry chain partners, and
promoting industry experience sharing and technological collaborative innovation.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Lead Product Responsibility
Homa Appliances actively participates in domestic and international industry exchanges
and industry-academia-research cooperation, sharing practical experience in technological Product Quality and Safety
innovation and quality management, and promoting collaborative development and
capability enhancement within the industry. During the reporting period, the Company
participated in important industry events such as the China Import and Export Fair in TCL Smart Home coordinates the direction of product quality and safety management at the group level, and
spring and autumn, the China International Furniture Fair (Shanghai), the China Household Governance its subsidiaries establish management structures based on their own operational realities, clarifying division
Electrical Appliances Association Technical Conference, and the IFA in Germany, and also of responsibilities and implementing quality control throughout the entire product lifecycle.
engaged in industry-academia-research cooperation with universities such as Harbin Institute
of Technology, Shenzhen to deepen technological exchanges and collaborative innovation. Hefei Home Appliances has established a Quality Management Center, which comprises eight professional
departments including Deputy Director, System Operation, Testing and Certification, etc. The Quality
Management Center is responsible for the construction and optimization of the Company's quality
management system, handling quality issues, improving supplier management mechanisms, customer
Homa Appliances collaborates with Harbin Institute of Technology, Shenzhen on industry- feedback, and technology introduction. It also updates and adjusts the business scope in a timely manner
academia-research cooperation
according to the Company's operation and business situation.
Homa Appliances has established a Quality Management Committee to comprehensively coordinate and
In November 2025, Homa Appliances and Harbin Institute of
Technology, Shenzhen conducted a collaborative exchange on supervise the Company's quality management work. The committee is led by the Vice President in charge of
industry-academia-research cooperation in the conference room the quality system, who is responsible for formulating and evaluating annual quality objectives, conducting
of the Homa Technology Research Institute. Both parties engaged in-depth analysis of quality issues, planning improvement plans, and continuously enhancing the operational
in technical discussions centered around the theme of "Analysis of efficiency of the Company's quality management system.
Noise in Air-cooled Refrigerators and Research on Noise Reduction
Technology", with a focus on exploring the noise mechanism of air-
TCL Smart Home adheres to the business philosophy of quality first, embedding the "zero defect"
cooled refrigerators, noise analysis of prototypes, identification of Strategy
transmission paths, and structural optimization simulation. requirement into product R&D and manufacturing processes, and taking product quality management
as its core business principle. It promotes quality control across the entire process, including R&D design,
The meeting focused on technical reporting and exchange
regarding project research plans, testing methods, and phased production and manufacturing, and after-sales service.
results. Both parties leveraged the application needs of enterprise
products and the research strengths of universities to promote
the implementation of noise control technology in product Industry-academia-research collaboration
Affected
Time range of Stakeho-lders
development, providing technical support for enhancing the exchange-project report
Impact Main types of risks and opportunities financial
impact affected
acoustic performance of air-cooled refrigerators.
indicators
Risks: In the event of product issues, the
Continuously improve the Upstream enterprise may face risks such as product recalls,
level of product quality and Short-term value chain compensation, and regulatory penalties, which
Indicators and Targets safety, reduce potential risks will have adverse impacts on operating costs,
medium- Self- sales stability, and brand reputation. Operating
to consumer safety caused
term, operation revenue
by quality defects, and Opportunities: Continuously strengthening
Targets Progress during the reporting period maintain a healthy market long-term Downstream the product quality and safety management
environment. value chain system can help reduce the probability of quality
• Steadily increase the intensity of R&D investment to drive • There are 1,296 R&D personnel, accounting for 8.75% accidents and minimize related losses.
technological innovation and product upgrades. • R&D investment of 680 million RMB
• 363 new authorized patents Impact, Risk, and Opportunity Management
• Improve the intellectual property system and strengthen
• Accumulated 2,725 authorized patents
patent layout.
• Accumulated 16 authorized overseas patents Quality TCL Smart Home has always prioritized product quality and safe production. The Company strictly
adheres to the Product Quality Law of the People's Republic of China and other relevant laws and
Management regulations, as well as domestic and international quality management standards. It continuously
• Promote industry exchanges and drive deep integration • Participated in the formulation of 8 industry standards optimizes its quality management system and improves its product quality control and enhancement
between upstream and downstream segments of the System
• Participated in industry exchange activities 6 times processes. During the reporting period, all subsidiaries of TCL Smart Home have obtained ISO 9001
industry chain.
quality management system certification.
Hefei Home Appliances ISO 9001 Homa Appliances ISO 9001 System
System Certification Certification
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Lead Product Responsibility
Hefei Home Appliances adheres to the quality policy of "being user-centered, continuously Homa Appliances has established a quality inspection process covering pre-production, in-
improving product and service quality, providing an ultimate experience, and becoming a top-tier production, and post-production stages. Before production, it implements first article inspection
home appliance brand." In accordance with relevant laws and regulations, it has formulated internal and in-process control inspection, conducts pre-transfer box audits, process discipline inspections,
management systems such as the Quality, Environment & Occupational Health System Management and special inspections for key processes, and regularly organizes equipment risk maintenance and
Manual to standardize quality management throughout the produ ction process. Additionally, technological transformation to ensure that equipment performance meets manufacturing and
the Hefei Home Appliances Testing and Certification Center has been accredited as a certification quality requirements. Additionally, by monitoring first-pass yield and conducting spot checks on key
laboratory by the China National Accreditation Service for Conformity Assessment (CNAS). processes, it continuously strengthens process quality control and production stability.
In addition, Homa Appliances has formulated institutional documents such as the Quality Manual, In advancing digital and intelligent production, Homa Appliances relies on the MES intelligent
Design and Development Control Procedure, Design Change Control Procedure, Completely quality management system to systematically control key inspection, error prevention, and repair
Knock Down New Product Development, Trial Production, and Production Transfer Management processes, achieving full-process data tracking and product traceability management for core quality
Procedure, and Tooling and Mold Management Procedure to standardize the management characteristics such as appearance, safety performance, leak detection, and refrigeration performance.
of product design, development, and manufacturing processes. During the reporting period, Production inspection and repair processes have been fully integrated into system management, and
the Company revised institutional documents such as the Supplier Management Procedure, visual scanning devices have been installed at key process nodes to effectively prevent misassembly of
Electrostatic Protection Management Procedure, Quality Digitalization Project Management components, thereby enhancing the digitalization and precision of quality control.
Measures, Product Recall Management Measures, and Management Measures of Quality
During the reporting period, Homa Appliances continued to promote technological upgrading centered
Improvement Project Award to further refine management requirements. Homa Appliances has
on quality inspection and active error prevention capabilities. From automated inspection, AI intelligent
obtained the "Same Line, Same Standard, Same Quality" enterprise certification. Homa Appliances'
recognition to extreme condition safety verification, it established a multi-dimensional quality assurance
products have passed tests conducted by Testing Centers authorized by CNAS, internationally
system covering the manufacturing process and product safety evaluation, driving the transformation of
renowned testing institutions SGS, CSA, TUV, ITS, and Dekra. The products have obtained safety,
quality management from manual experience judgment to data-driven and intelligent control.
environmental protection, energy consumption, and other certifications in more than 100 countries
and regions worldwide, meeting stringent European energy efficiency standards.
Technical focus Specific measures Control effectiveness
TCL Smart Home has established a quality management system centered around the entire product
Comprehensive Build an AI production line, apply an AI leak and Enhance the error prevention capability of
lifecycle, forming a closed-loop control mechanism that covers material procurement, production, and
error prevention system for foot screws, and key processes, achieve automatic sorting and
Quality Control finished product delivery. The Company has established systems for material procurement inspection, AI intelligent error prevention
automatically transfer abnormal products to the disposal, and prevent missing or incorrect
process control, finished product sampling inspection, non-conforming product management, and market
repair line assembly of key components
complaint handling. It implements graded control over key quality nodes to ensure stable and reliable
product quality. Meanwhile, by regularly conducting recall drills, it enhances its emergency response and
handling capabilities in case of quality anomalies. During the reporting period, TCL Smart Home did not Replace manual inspection, reduce human
Innovative automatic detection technology for
experience any major product quality accidents. Automated defect detection misjudgment, and further improve detection
exposed defects in PA pipes
accuracy and consistency
Regarding procurement management, Hefei Home Appliances relies on the Quality Management System
(QMS) to achieve full-process quality traceability, establishes a standardized procurement inspection
process, and strictly controls the quality of raw materials. Homa Appliances has formulated the Procurement Fill the gap in safety verification for extreme
Inspection Management Measures to ensure that purchased raw materials and components meet Safety performance Establish a safety evaluation system for touch operating conditions and strengthen active
Detection efficiency established quality and technical standards, laying a solid foundation for product quality from the source. verification system voltage values safety protection for products without
improved grounding wires
Homa Appliances implements supplier management in the upstream raw material stage and conducts
Times incoming inspection according to the purchase inspection management requirements. During the reporting
period, Homa Appliances entered the AI incoming inspection system to further optimize inspection
efficiency and accuracy; at the same time, it established the Advanced Planning and Scheduling (APS)
system and the Product Data Management (PDM) system to strengthen production plan coordination and
Order response cycle
technical document version control, thereby enhancing quality consistency from the source.
shortened Homa Appliances launches "Compressor Failure Risk and Quality Anomaly Improvement" project
In the production process, Hefei Home Appliances actively promotes intelligent management and control
of product production and quality monitoring, establishes an AI intelligent appearance inspection system,
and sets up a full-process inspection procedure covering the entire factory. It conducts real-time monitoring In 2025, Homa Appliances identified a potential risk of voltage surge failure in a certain model of chip used in compressor control
of key processes and quality control points, co mbines on-site inspection and data recording, identifies boards during product quality monitoring. After analysis by the technical team, it was found that the root cause of the problem
and corrects abnormalities in the manufacturing process, and strengthens process quality stability. was the insufficient precision in matching the selection of protective components with the voltage tolerance of the chip. In
During the reporting period, Hefei Home Appliances promoted the construction of a smart manufacturing response to this situation, the team quickly formulated an improvement plan, replacing the specifications of the protective
demonstration line, introducing industrial robots, Automated Guided Vehicles (AGVs), and visual inspection components to ensure that they could activate the protection mechanism in a timely manner within the tolerable range of the
systems to implement automation and online monitoring of key processes. The automation rate of key chip. Currently, the optimization and replacement of the relevant model products have been completed, further enhancing the
processes increased to over 65%, the detection accuracy of some inspection links improved to over 99%,
reliability and stability of product quality.
and the detection efficiency increased tenfold. In addition, a flexible production line was built to achieve
mixed-model production of multiple product models, reducing the order response cycle by 30%.
In the quality inspection process of finished products, Hefei Home Appliances has established
internal management systems such as the Control Procedures for Product Monitoring and
Measurement and the Control Procedure for Product Identification and Traceability to standardize
the monitoring and traceability management of finished product quality. Comprehensive testing
Hefei Home Appliances actively promotes the construction of intelligent manufacturing is conducted on product performance and safety indicators to ensure that outgoing products
and digital quality management meet relevant quality requirements. Homa Appliances has established an IPQC process for spot-
checking the quality of finished products and conducts rigorous quality inspection before product
During the reporting period, Hefei Home Appliances focused on its dual-drive strategy centered on "smart manufacturing" and
delivery to ensure that all finished products comply with the national "Same Line Same Standard
"digital operation", applying digital technology to the quality control of the production process. The Company formulated a
Same Quality" Standards and EU quality standards.
comprehensive digitalization plan covering R&D, production, supply chain, marketing, and management. During the reporting
period, the Company completed the integrated deployment of core platforms such as Enterprise Resource Planning (ERP), Hefei Home Appliances has obtained CCC certification, and its refrigerators have obtained SAA,
Manufacturing Execution System (MES), and Product Lifecycle Management (PLM), and plans to leverage industrial internet CB, CE, GS, and KC certifications for export sales. Its washing machines have obtained SAA, CB,
platforms to gradually integrate data from key business processes, enabling unified data analysis and decision support. CE, GS, SASO, BSMI, KC, TISI, and BPS certifications for export sales. Homa Appliances have
completed quality and safety certifications including CCC, UL, TISI, TUV and VDE.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Lead Product Responsibility
Product Safety TCL Smart Home attaches great importance to the management of raw material safety, ensuring product Building High Product TCL Smart Home places great emphasis on fostering a product quality culture, integrating quality
safety and compliance from the source. Regarding harmful chemical substances, the Company requires awareness into the entire process of enterprise management and production operations, and promoting
all raw materials to comply with relevant requirements such as the Restriction of Hazardous Substances Quality Culture the formation of a quality culture characterized by full participation and whole-process control.
(RoHS) and the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH). In addition,
Hefei Home Appliances has established systems such as the Incentive System for Quality
the Company regularly conducts training on the use of relevant chemicals for employees, strengthening
Management Teams and the Incentive Plan for Total Quality Improvement Activities at TCL Hefei
the management awareness of relevant personnel. During the reporting period, TCL Smart Home did not
Homa Appliances Home Appliances, effectively mobilizing all employees to participate in quality initiatives. To
experience any product safety accidents.
strengthen the construction of quality talent teams, Hefei Home Appliances has set up quality
Hefei Home Appliances has formulated the Regulations on Hazardous Substance Process Management talent training classes, and regularly conducted quality management training to align quality
Product quality training
based on relevant standards, conducting comprehensive assessments of raw materials involving chemical awareness among professionals. During the reporting period, Hefei Home Appliances conducted 11
substances. The Company has established a supplier management mechanism in accordance with the training sessions on export standards for refrigerators and washing machines, covering more than
RoHS Compliance Control Management Measures, regularly conducting audits and eliminating suppliers 200 people in the fields of product, R&D, and quality.
who fail RoHS testing to ensure that raw materials meet corporate control requirements. During the
To deepen the construction of a quality culture for all employees, Hefei Home Appliances regularly
product design and development stage, the Company implements national standards and conducts
organizes various quality-focused activities. The Company organizes self-inspection and mutual
testing and verification to ensure that products meet safety performance requirements. The Company
Total number of participants in inspection activities in the refrigerator and washing machine factories every month to strengthen
regularly organizes product type testing to verify the safety and performance stability of mass-produced
quality control throughout the production process. In addition, the Company conducts monthly
products. In addition, Hefei Home Appliances has established a three-level inspection process and a non- the trainig
Quality Star improvement activities, covering all areas of R&D, manufacturing, procurement, service,
conforming product handling process to strictly control product quality.
and quality. The refrigerator and washing machine factories conduct evaluation and assessment based
Homa Appliances adheres to the RoHS Compliance Control Management Measures and has established on market quality indicators and finished product quality indicators, promoting improvement and
internal systems such as the Procurement Inspection Management Method and the Management Measures enhancing quality levels through evaluation. Meanwhile, Hefei Home Appliances forms improvement
of Hazardous Substance Compliance Control to standardize the inspection process of raw materials. The teams in the form of small groups to carry out Quality Control Circle (QCC) improvement activities. The
Company has implemented a systematic supplier management mechanism, regularly conducting audits Company evaluates the inspection skills of online inspectors based on the actual products, presenting
and eliminating suppliers who fail RoHS testing. During the reporting period, in order to strengthen the awards to the top three performers and establishing quality benchmarks.
control of hazardous substances and enhance the environmental compliance of raw materials, Homa
Homa Appliances focuses on enhancing quality capabilities and takes multiple measures to foster a
Appliances changed the material of the internal tank granules to environmentally friendly materials.
quality culture. On the one hand, the Company implements quality engineering projects, enabling
employees to systematically learn quality project management methods and tools through project
practice, thereby improving their practical ability in quality control. On the other hand, Homa
Appliances holds monthly quality meetings to strengthen the quality improvement mechanism.
Branch factory managers and department heads organize discussions on quality improvement
matters, and through thematic exchanges and experience sharing activities, a learning and
communication platform is established to continuously enhance employees' ability in quality
engineering analysis and improvement.
Homa Appliances conducts special training on product inspection standards
In December 2025, in order to continuously promote the
construction of quality culture, the Quality Department of
Homa Appliances organized a training session on product
inspection standard knowledge with the theme of Product
Audit Evaluation Standard Requirements in the training
room of the sixth factory, with a total of 23 participants.
The training systematically covered topics such as the
Hefei Home Appliances Washing Hefei Home Appliances product audit process, understanding of evaluation
Machine RoHS Certificate Refrigerator RoHS Certificate standards, and identification of quality risks, further
enhancing employees' understanding and execution
ability of product quality standards.
Management TCL Smart Home attaches great importance to the management of unqualified products and strictly controls Special training on product inspection standards
the product recall process. Through systematic management practices, the Company has established a sound
of Unqualified product recall management mechanism and standardized operating procedures to effectively safeguard the
Products legitimate rights and interests of consumers and ensure product quality and safety. During the reporting period,
TCL Smart Home did not experience any recalls of unqualified products. Indicators and Targets
Hefei Home Appliances has established a standardized control system for unqualified products, formulated internal
systems such as the Control Procedures for Substandard Products, and improved relevant management regulations for Targets Progress during the reporting period
product rework and repackaging. The Company has clearly defined the identification, recall, evaluation, and disposal
processes for defective products to prevent unqualified products from entering the market. • No major product quality or product safety accidents have
Homa Appliances has formulated relevant management procedures such as the Product Recall Management occurred.
Measures, clarifying the division of responsibilities and specific operational processes among various • With the goal of achieving zero product safety accidents, • No major administrative penalties have been imposed due
departments. In the event of a product recall, the Company will establish a product recall team consisting of the Company should strengthen the quality and safety to product quality and product safety issues.
representatives from R&D, quality, manufacturing plants, sales, and after-sales service departments, responsible defense line. In this regard, Homa Appliances has set a
target of achieving a first-pass yield of over 90%. • The product has been recalled 0 times.
for the overall planning, notification issuance, record compilation, and effect evaluation of the recalled products.
During the reporting period, the Company revised and updated the Product Recall Management Measures to • The annual achievement value of first-pass yield of products
further optimize the content and implementation requirements of the system. for Homa Appliances is 92.33%, exceeding the target.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Lead Product Responsibility
Supply Chain Management Material circulation management principles of Homa Appliances
Adhering to the Just In Time (JIT) principle, the Company precisely controls the arrival
TCL Smart Home oversees supplier management from a group-level perspective, with its subsidiaries time of raw materials according to the production plan to reduce inventory occupation.
Principle 1
Governance establishing corresponding management structures based on their actual business needs. They have
refined the entire process mechanism for supplier access, review, and exit, continuously enhancing the
standardization and responsibility management of the supply chain. Implement the first-in, first-out (FIFO) principle to ensure that raw materials are used in
Hefei Home Appliances has established a Procurement Management Committee, chaired by the general batch order, avoiding expiration or deterioration.
Principle 2
manager and vice-chaired by the supply chain director. The committee comprises representatives from
relevant functions such as product lines, procurement, finance, quality, and audit, coordinating and
collaborating across multiple parties including production, R&D, quality, and procurement, to implement
Implement classification management based on the ABC classification method, with a
unified decision-making and efficient management of the Company's procurement business. The
focus on high-value and critical materials.
Principle 3
committee has a subordinate category management mechanism (CEG team) specifically responsible for the
implementation and execution of various procurement-related tasks.
The supplier management work of Homa Appliances is centered around the supply department and
is divided into eight material management teams according to different material categories. Through
Establish a full-process traceability system from suppliers to finished products, strengthen
classified management and precise control, the Company continuously improves the level of refinement and
Principle 4 quality control and responsibility implementation, and enhance the basic management
professionalism of its supply chain operations. capabilities of the supply chain.
TCL Smart Home attaches great importance to responsible supply chain management, always adhering To cope with risks such as fluctuations in raw material prices, supply disruptions of key
Strategy to the cooperation principles of "honesty and trustworthiness, fairness and justice, equality and mutual components, fluctuations in logistics costs, and supply interruptions, Homa Appliances
benefits". With the goal of building an efficient, transparent, and sustainable supply chain system, it systematically promotes risk management and control through supply collaboration, inventory
promotes value chain partners to jointly practice responsible business practices. management, and supply structure optimization. Homa Appliances has established close
supplier partnerships, achieving early risk warnings and coordinated responses through
Homa Appliances' Material information sharing and collaboration mechanisms. In terms of inventory management, the
Preparation Completion Rate Company sets up inventory buffers and safety stocks, and implements advance stocking for
materials identified as high-risk to ensure supply continuity.
Affected
Time range of Stakeho-lders
Impact Main types of risks and opportunities financial
impact affected
indicators Meanwhile, Homa Appliances actively promotes the diversification of its supplier base,
introducing at least two suppliers for similar materials to reduce dependence on a single supplier
Risks: Fluctuations in raw material prices, and enhance the flexibility and stability of the supply chain. In response to the risk of fluctuations
Promote responsible supply in shipping prices, the Company strengthens monitoring of the transportation market and overall
unstable supply, and stricter compliance
chain management, enhance Upstream shipment coordination, and enhances overall risk response capabilities through inventory
regulations may lead to delivery delays, increased
the transparency and stability Short-term value chain adjustment, supplier collaboration, and traceability management mechanisms. During the
costs, and the transmission of compliance risks,
of the supply chain, facilitate reporting period, Homa Appliances achieved a 100% completion rate for inventory preparation
Self- affecting production continuity.
compliance management Raw targets, with a material completeness index of 93%, exceeding the annual target. The material
medium- operation
and capability improvement material turnover index was 6.5 days, meeting the annual standard.
term Opportunities: Strengthening cooperation
of suppliers, while ensuring Downstream cost
with high-quality suppliers and promoting the
equal treatment of small and In addition, Homa Appliances has advanced the construction of its manufacturing base in
long-term value chain construction of a green, integrity-driven, and fair
medium-sized enterprises Thailand and commenced operations at its 300,000-unit freezer sub-factory. By improving its
supply chain will help enhance the resilience
to foster a sustainable overseas production capacity layout, the Company has enhanced the resilience and stability
of the supply chain and improve the stability of
cooperation environment. of its supply chain, thereby effectively strengthening its ability to cope with fluctuations in the
enterprise operations.
international trade environment.
Dimension of supply chain
Hefei Home Appliances Homa Appliances
capability building
Impact, Risk, and Opportunity Management
A supply and demand interlocking mechanism (S&OP
By making reasonable predictions for raw material
production and sales collaboration) as well as a
demand and implementing differentiated management
material completeness and slow-moving inventory early
Supply Chain TCL Smart Home has established a comprehensive supply chain risk management system, continuously of long-term and short-term materials, the Company can
Flexible supply chain warning mechanism have been established. Data-driven
enhancing the supply chain's resilience to risks through a full-chain risk identification, assessment, and prepare materials in advance or trial-produce materials
Management forecasting and procurement planning for different cycles
response mechanism. according to work orders to ensure supply flexibility and
are carried out through key indicators such as cycle,
responsiveness.
Hefei Home Appliances has established a systematic supply chain risk management framework, effectively strategy, and flow rate.
diversifying and addressing various risks through multi-departmental collaborative decision-making and
By adopting the SRM system, the Company aims to build a
refined control. The Company has established a collaborative decision-making mechanism for front- and collaborative and win-win partnership and jointly explore
back-office risks, led by the procurement committee, with multiple departments jointly participating in the market, creating an integrated platform for enterprise
Integrate supply chain management through the SRM
supply chain risk management. To stabilize procurement costs and supply order, the Company continuously resource acquisition and supplier management. The
system, and build a full-process digital platform covering
tracks the price fluctuations of raw materials and key components, with the annual cost reduction KPI as SRM system integrates various information technologies
Digital supply chain modules such as supplier management, procurement
the goal, and promptly submits it to the procurement committee for scientific decision-making. At the to support processes such as strategic product design,
demand management, sourcing management, and
strategic resource acquisition, contract negotiation
same time, the Company further diversifies and resolves various supply chain risks through refined annual forecast management.
management, and unified product information
planning, improved KPI assessment system, and promotion of the hilltop project mechanism. The Company management, achieving digital and collaborative
continues to expand high-quality supplier resources, and enrich supply channels, fundamentally reducing operation of supply chain management.
the dependency risk brought by a single supplier.
Incorporate delivery distance in the assessment for new
Homa Appliances has established internal management systems such as the Material Circulation
supplier admission, and optimize the local supply layout; 80% of raw materials are provided by suppliers around
Management Measures, which clarify material management standards and implement four major Localized procurement The bulky materials suppliers are located within a radius the Pearl River Delta, continuously deepening the supply
management principles. of about 50 kilometers, with local suppliers accounting for chain layout in the Pearl River Delta region.
more than 60% of the total.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Lead Product Responsibility
TCL Smart Home attaches great importance to supply chain source control. For potential new suppliers, it suspending cooperation will be taken. If a supplier has major violations in integrity, finance, or other aspects, the
Supplier
conducts comprehensive verification from dimensions such as qualification compliance, business reputation, Company will immediately eliminate it.
Admission system certification, and product quality. Through on-site audits, it comprehensively evaluates suppliers'
Homa Appliances has established standardized supplier admission and procurement management processes,
contract fulfillment capabilities and reliability, establishing a standardized and regulated supplier admission
forming a closed-loop management mechanism that covers plan reception, order placement, arrival tracking, and
system.
material warehousing. The supply department salesperson first receives and reviews the master production plan,
Hefei Home Appliances has established and implemented the Supplier Certification Management Process, and then places a purchase order after calculating precise procurement needs through the Logistics Resource
conducting supplier qualification reviews and assessments in accordance with the "four stages and fourteen Planning (LRP) system. Subsequently, the salesperson follows up on the material arrival progress throughout
steps" new supplier introduction mechanism. It explicitly requires suppliers to possess SA 8000 social the entire process. Upon arrival of the materials, the quality department conducts rigorous incoming inspection.
responsibility standard qualifications, as well as ISO 14001 environmental management system, ISO 9001 Qualified materials are managed by the manufacturing department warehouse, while unqualified materials are
quality management system, and ISO 45001 occupational health and safety management system certifications. either subject to the recycling process or returned according to regulations.
Homa Appliances has simultaneously improved its supplier admission management, explicitly requiring
Homa Appliances conducts quarterly regular assessments on suppliers, covering multiple aspects such as product
suppliers to possess three core qualifications: legal compliance, environmental and safety management, as well
quality, usage tracking, delivery timeliness, and service attitude. Based on the assessment results, the Company
as social responsibility and business ethics. Firstly, suppliers must comply with national laws and regulations,
regularly updates supplier classification. If a supplier is involved in major negative environmental incidents or
possessing legal documents such as business licenses, environmental impact assessment approvals, and safety
related issues, the Company will urge it to promptly implement rectifications and submit a rectification report.
permits. Additionally, the Company pays attention to the industry status and supply qualifications of suppliers,
focusing on the construction of their quality management systems. Homa Appliances conducts on-site audits In addition, TCL Smart Home has continuously deepened its supplier empowerment efforts. Through various
for key suppliers, inspecting the production environment, storage conditions, and the management system means such as resource sharing, technical support, and training exchanges, it has continuously strengthened
operations. suppliers' management capabilities in compliance management, product quality, and business ethics. This has
facilitated suppliers' timely understanding of the Company's management requirements and industry trends,
TCL Smart Home has incorporated ESG requirements into its supplier admission assessment system, promoting promoting collaborative development of the supply chain. During the reporting period, the Company conducted
Supplier ESG 2 sessions of supplier training, covering 784 suppliers. Some suppliers have already undergone training related
upstream and downstream collaboration to implement the concepts of sustainable development.
Management to AEO trade security standards to enhance the compliance level of cross-border business and the security of the
Hefei Home Appliances incorporates multiple dimensions such as product quality, technology R&D, and supply chain.
and Due environmental protection into supplier evaluation. In terms of environmental management, the Company
Diligence audits suppliers based on the Environmental Protection of Restricted Substances - On-site Inspection Checklist
and gives priority to partners who have obtained QC080000 hazardous substance process management system
certification and actively implement environmental protection measures. In terms of social responsibility,
Hefei Home Appliances TCL Smart Home has always adhered to the principles of "honesty and trustworthiness, fairness and justice,
the Company conducts rigorous reviews of suppliers' labor rights protection, occupational health and safety Equal Treatment
equality and mutual benefits," fully safeguarding the legitimate rights and interests of small and medium-
management, and other aspects in accordance with the Supplier Social Responsibility Inspection Checklist. For
Suppliers' environmental of Small and sized enterprise suppliers. The Company has clarified payment methods and payment terms with all suppliers
suppliers that pass the evaluation, Hefei Home Appliances signs documents such as the Notice to Interested
assessments coverage through formal contracts, and strictly fulfills its payment obligations for accounts payable as agreed. During
Parties, Integrity Commitment Letter, Supplier Code of Conduct, Quality Assurance Agreement, Supplier Medium-sized
the reporting period, TCL Smart Home had no legal proceedings related to overdue payments, and its accounts
rate Capability Survey Form, Social Responsibility Agreement, Supplier Performance Management Measures,
Enterprises payable balance did not exceed 50% of total assets.
Partner Code of Conduct Agreement, and Safety and Fire Management Responsibility Commitment Letter,
clarifying the responsibilities and requirements of both parties in terms of compliance management, product
quality, social responsibility, safety management, and performance management.
Suppliers' social Homa Appliances conducts audits and assessments of environmental risk factors for some key suppliers based Responsible TCL Smart Home adheres to the Code of Conduct Responsible Business Alliance (RBA) and other relevant
assessments coverage on the Related Party Safety and Environmental Management System and the Vendor Environmental Safety regulatory requirements, and places great emphasis on the sustainable management of mineral resources in its
rate Questionnaire. In terms of social responsibility, Homa Appliances reviews suppliers' social security payment
Mineral production and operation. For key mineral resources such as nickel, cobalt, manganese, lithium, graphite, mica,
reports, and other documents, and evaluates the protection of labor rights and occupational health and safety areas and clearly constrains upstream suppliers to jointly comply with the conflict mineral prohibition policy. By
management. conducting supply chain due diligence, the Company continuously strengthens compliance management in the
procurement process and effectively ensures the legality and compliance of raw material procurement.
Suppliers' Integrity Homa Appliances requires suppliers to sign Integrity Agreements, which clarify anti-corruption and anti-bribery
Hefei Home Appliances has formulated the Standard for Conflict Mineral Management, committing to
(Sunshine) Agreement requirements and prohibit any form of bribery, kickbacks, and benefit transfers. Meanwhile, the Company
eliminating the use of conflict minerals in its products and supply chain. The Company requires suppliers to
signing rate requires suppliers to adhere to the principle of fair competition, eliminate unfair competition behaviors such as
sign the TCL Declaration of Conformity for Prohibited and Restricted Substances and regularly conducts training
bid collusion, bid rigging, and price manipulation, fulfill intellectual property protection obligations, establish a
related to conflict minerals to strengthen supplier responsibility awareness and compliance capabilities. If any
comprehensive technology confidentiality and trade secret protection mechanism, and jointly maintain a healthy
supplier is found to be using conflict minerals, Hefei Home Appliances will immediately take control measures
business ecosystem.
such as recalling products on sale and sealing relevant inventory, and will re-evaluate and dispose of the
supplier in accordance with the quality agreement.
TCL Smart Home places great emphasis on the full-cycle supply chain management. By formulating annual
Supplier
supplier audit plans and regularly convening supplier quality review (QBR) meetings, it conducts comprehensive
Management assessments of suppliers' performance in environmental, social, and governance aspects, continuously
strengthening daily operational management of suppliers. For suppliers with violations, the Company will urge
them to complete rectification within a specified timeframe; for those who fail to rectify or refuse to do so, the Indicators and Targets
Company will take corresponding management measures such as suspending cooperation or terminating
admission. Targets Progress during the reporting period
Based on the TCL Industry Product Category and Supplier Graded and Classified Management Process and taking
into account business needs, Hefei Home Appliances implements a four-dimensional hierarchical management • The total number of suppliers is 841, including:
of product categories and suppliers, covering QCDT (Quality, Cost, Delivery, and Technology). The Company • Optimize the global supply chain layout, build a diversified
※ 804 suppliers in the Chinese mainland
regularly conducts comprehensive assessments based on QCDT indicators, product category scoring standard, and supplier network, and continuously strengthen the stability
※ 10 suppliers from Hong Kong, Macao, and Taiwan regions
supplier hierarchical scoring system, and dynamically adjusts supplier grades and supply quotas according to the of the supply chain
assessment results. ※ 27 overseas suppliers
For strategic product categories and strategic suppliers, Hefei Home Appliances gives priority support in resource
matching and cooperation promotion. For suppliers whose evaluation results do not meet the standards, the • Deepen supplier capacity building and build a collaborative • Conducted 2 sessions of supplier training, covering 784
Company requires them to complete rectification within a specified period; for suppliers that fail to rectify partnership for development suppliers
effectively or whose rectification results do not meet the requirements, corresponding measures such as
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Lead Product Responsibility
Customer Service Impact, Risk, and Opportunity Management
TCL Smart Home has incorporated the development of customer service capabilities
Governance TCL Smart Home attaches great importance to the development of its customer service
into the key management focus of the group, clarifying service standards and Customer Service management system, consistently adhering to a user-centered approach and continuously
management requirements, and promoting its subsidiaries to improve their customer Management System improving the service system and service processes. The Company is committed to building
service structures, thereby continuously enhancing service quality and response a standardized and efficient service management system, continuously striving to enhance
efficiency. Both Hefei Home Appliances and Homa Appliances have established after- service quality and user satisfaction.
sales service departments as the executive bodies, responsible for the operation of
the service system, network management, complaint handling, and service quality Homa Appliances Hefei Home Appliances strictly adheres to systems such as the TCL Refrigerator and Washing
improvement. They have also established a digital after-sales service system to Machine Quick Compensation Mechanism 3.0, and rigorously implements standardized service
provide support for customer demand tracking, work order management, service processes for fault detection of refrigerators and washing machines. Through standardized
Percentage of work orders inspection and maintenance management, Hefei Home Appliances has established
progress monitoring, and satisfaction follow-ups.
scheduled within two hours standardized service processes for fault detection of refrigerators and washing machines,
accounted for which improve maintenance quality, reduce the need for secondary visits, and shorten user
TCL Smart Home has always adhered to a user-centered service management waiting times. At the same time, Hefei Home Appliances has improved the omni-channel
Strategy philosophy, continuously building a standardized and efficient service management return and replacement service mechanism, optimized processes, and increased authorization
system, and guiding its subsidiaries to base themselves on their own business for frontline personnel, enabling them to respond quickly to customer needs within their scope
characteristics and implement a service philosophy that meets user needs. of authority, thereby improving service efficiency and the overall customer experience.
Hefei Home Appliances adheres to the customer service philosophy of "striving to Percentage of work orders Homa Appliances has established a comprehensive service standard system, formulating
completed within 48 hours normative documents such as the Out-of-Warranty Charging Standards and service
become the most trusted home appliance service provider for consumers, providing
users with ultimate services with warmth, and making life better!" It focuses on guidance documents like Polite Telephone Communication Language for Service Outlets
upgrading service quality and is committed to creating a warm and highly recognized and Service Standards and Polite Language for On-site Service at Outlets. The Company
has established user profiles through its "after-sales service system", with dedicated
service experience. Homa Appliances upholds the service philosophy of "serving
personnel responsible for follow-up and handling, enhancing the efficiency of tracking
customers wholeheartedly and determined to impress customers". Focusing on efficient customer needs. The Company has appointed after-sales service managers in each province
response to customer needs and continuous optimization of after-sales service, it to manage service outlets and service orders, with regular monitoring of service progress
consistently improves the user experience throughout the entire service journey. and user satisfaction feedback by the headquarters. Furthermore, to improve service
completion efficiency, the Company has established a timely on-site incentive policy in the
Special Maintenance Service Agreement, stipulating that service outlets will be assessed for
Affected orders not completed within 2 hours of appointment.
Time range Stakeholders
In addition, the Company actively improves its after-sales service network, ensuring service
Impact Main types of risks and opportunities financial
of impact affected
within 48 hours in rural areas and providing appointment services for remote areas, thereby
indicators
guaranteeing the consumer experience for rural consumers.
By establishing intelligent Risks: If customer service experiences slow
service platforms and Upstream response, improper attitude, or fails to handle
optimizing after-sales issues in a timely manner, it can easily lead to
Medium- value chain TCL Smart Home places high importance on customer complaints, regarding rapid response and
management processes, customer loss, affecting corporate revenue and Customer Complaint
term effective resolution of customer demands as the core of service improvement. The Company
enterprises provide market expansion. Operating
Self-operation Management continuously improves the whole-process management system for customer complaints,
consumers with efficient Opportunities: By enhancing service revenue effectively safeguarding users' legitimate rights and interests and ensuring a good experience.
service experiences, forming processes and service quality, enterprises can
long-term Downstream
a service ecosystem oriented simultaneously improve internal operational Hefei Home Appliances has established the User & Customer Complaint Resolution
towards user rights and value chain efficiency and customer response speed, Mechanism (4.0) A3 to standardize the processes of customer complaint acceptance,
interests. thereby increasing customer retention rates. handling, and closed-loop management. The Company has constructed a digital service
system encompassing a customer management system, User Service System (USS), and
intelligent response robots. It also refines the management of work order nodes through the
service desk and timely intervention desk, sets up a complaint warning entry on the engineer
APP terminal to enable real-time anomaly alerts and rapid intervention, ensuring efficient
response to customer demands. Additionally, the Company relies on the Voice of Customer
(VOC) management platform to regularly monitor product public opinion and user feedback,
strengthen problem analysis and closed-loop improvement mechanisms, and improve
product and service quality from the source.
Homa Appliances has established the Reminder and Complaint Standards and set up
communication channels such as telephone hotlines and WeChat official accounts to respond
to consumers' needs for repair reports, inquiries, complaints, and suggestions. The Company
has established user profiles through the "after-sales service system" and adopted 100%
manual review, with dedicated personnel responsible for follow-up, handling, and response, to
enhance customer satisfaction. For major repair service orders, one-on-one telephone follow-
ups are conducted, and follow-up summaries are generated in the after-sales service system.
Homa Appliances
Customer satisfaction Follow-up rate
Customer complaints handled
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Lead Product Responsibility
Customer Service TCL Smart Home adheres to a user-centered approach, continuously improving its
customer service training system and enhancing employees' abilities in customer
Empowerment reception, communication responsiveness, and comprehensive service.
Homa Appliances has formulated the Regulations on Management of Training for User
Service Center to further standardize customer training standards. The Company relies on
digital tools to establish diversified training and knowledge sharing channels, uploading
product-related documents and sharing product maintenance manuals through the
Homa Appliances knowledge base, and regularly conducts product technical training for
service outlets and customer service personnel through WeCom live broadcasts.
During the reporting period, Homa Appliances promoted two initiatives to enhance
customer service capabilities. Leveraging the Homa Appliances knowledge base,
the Company effectively reduced the pre-job training time for new employees,
enabling them to quickly search for issues and obtain online answers promptly after
independently taking up their positions. Furthermore, the Company further clarified
the standard handling process and standardized communication methods for non-
routine issues in the knowledge base, assisting customer service personnel in quickly
identifying and efficiently addressing complex issues.
Homa Appliances conducts online training on the refrigeration
principle of air-cooled products
In December 2025, Homa Appliances conducted a special training on the
refrigeration principle of air-cooled products through a live broadcast on WeCom,
aiming to continuously improve the quality of customer service and response
efficiency. The training focused on technical knowledge of air-cooled products
and customer service standards, covering a total of 48 network and customer
service personnel.
Responsible Marketing TCL Smart Home has always regarded integrity in business operations as the cornerstone
of its brand development. In advertising and marketing activities, it strictly adheres to
relevant national laws and regulations, industry standards, and business ethics norms
in its operating regions, ensuring that all external communication content is truthful,
accurate, legal, and compliant, while actively promoting healthy consumption concepts.
The Company strictly adheres to relevant laws and regulations such as the Advertising
Law of the People's Republic of China, the Law of the People's Republic of China on
the Protection of Consumers Rights and Interests, and the Interim Measures for the
Administration of Internet Advertising, as well as institutional documents such as
advertising review and publishing guidelines issued by market regulatory authorities. In
overseas markets, the Company strictly complies with local laws related to advertising,
consumer protection, data privacy, and competition, and actively aligns with industry self-
regulatory code of conduct, such as the International Advertising Standards Alliance (IASA).
Hefei Home Appliances has established a comprehensive compliance management
system for the entire process of advertising content review and full coverage. It has set
up a cross-functional advertising review team composed of marketing, legal, technical,
and compliance departments, implementing a full-chain content review mechanism
covering "planning - copywriting - design - publishing". The Company conducts key
reviews focusing on content authenticity, compliance, and objectivity, to eliminate false
misleading information, exaggerated propaganda, unfair competition, and sensitive
violations. During the reporting period, all advertising and marketing activities carried
out by Hefei Home Appliances globally passed 100% internal compliance review,
and regular inspections and risk assessments were conducted on published content
through a normalized monitoring mechanism.
Indicators and Targets
Targets Progress during the reporting period
• Deepened the development of its customer service
• Continuously optimize product and service experience,
framework, leading to ongoing enhancements in user
and enhance customer satisfaction level
experience and a notable rise in satisfaction levels.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Co-create a Collaborating Community Ecosystem
Co-create a
Collaborating
Community Ecosystem
TCL Smart Home views sustainable development as a process of growing
together with our employees. The Company continuously improves its talent
development management system, actively creates a diverse, inclusive,
and equal workplace atmosphere, and provides employees with a safe and
comfortable office environment as well as vast development opportunities.
At the same time, the Company proactively fulfills social responsibilities
by participating in community public welfare activities, promoting
collaboration and progress between the value chain and the community.
COMMUNITY 54
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Co-create a Collaborating Community Ecosystem
Employee Rights and Protection TCL Smart Home respects the rights of employees to freely associate and engage in
collective negotiation, acknowledges and respects all lawful and legitimate acts of
free association and collective negotiation, and does not interfere with the lawful and
reasonable activities organized by employees. Employees will not be discriminated
TCL Smart Home has established a sound organizational structure for the protection of against or retaliated against for participating in organizational activities.
Governance employee rights, and assembled a professional management team to lead and coordinate
relevant work on employee rights. By formulating and improving the human resource
management system, standardizing the entire process management of human resource
planning, compensation and benefits, performance management, career development,
Total number of employees
it promotes the coordinated development and mutual benefit of the enterprise and Number of
employees. employees:
Number of male employees classified by Number of female employees
TCL Smart Home has always adhered to the principle of fair recruitment and continuously gender
Strategy established and improved the Company's recruitment management system. Hefei
Home Appliances adheres to the recruitment principles of "equal employment, person-
job match, empowerment for mutual success", focusing on professional ability and job
suitability to achieve common development for both the Company and its employees.
Homa Appliances adheres to the recruitment principles of "openness, fairness,
competition" and "appointing people based on merit", laying a solid foundation of talents
for the steady development of the Company.
Number of
employees:
Number of employees
Potential
Time range Stakeholders Number of employees classified by age
aged 30 to 50
Impact Main types of risks and opportunities financial
of impact affected
impact under 30 years old
Risks: If the employee rights and protection is not in
place, it may lead to talent loss, decreased employee
Provide legal rights Short-term satisfaction, and weakened organizational cohesion,
protection and a good which in turn will affect operational efficiency and
working environment, increase operating costs.
promote stable medium- Self- Operating
Number of employees over 50 years old
employment, maintain term operation Opportunities: By fostering an equal and inclusive cost
harmonious labor relations, workplace environment and improving the salary
and promote inclusive communication mechanism, the Company can enhance
social development. long-term employee trust and sense of belonging, increase the
attractiveness and retention rate of high-quality talent,
and promote operational efficiency. Number of
Bachelor's degree employees:
classified by
educational level Associate degree or below
Impact, Risk, and Opportunity Management
TCL Smart Home strictly adheres to the International Labor Organization Convention, Master's degree or above
Equal Employment the Labor Law of the People's Republic of China, the Labor Contract Law of the People's
Opportunity Republic of China, and other relevant laws and regulations. It continuously improves its
recruitment management system, effectively safeguards employees' statutory rights and TCL Smart Home places great emphasis on effective communication with its
interests such as salary and vacation, establishes an internal employee management system, Employee
employees, continuously improving communication mechanisms and problem-solving
strictly prohibits the employment of child labor and any form of forced labor, and rigorously
verifies employee ages during the recruitment process. Hefei Home Appliances has issued
Communication processes, and fostering a friendly and inclusive workplace atmosphere. By establishing
the Management Procedures for Prohibition of Child Labor and Underage Labor to further a diversified communication platform, the Company ensures timely feedback on
standardize employment management requirements. Homa Appliances relies on a digital employee suggestions and efficient resolution of related issues. Additionally, the
human resources system to achieve compliant employment and prevent employment Company regularly conducts employee satisfaction surveys to comprehensively
violations. During the reporting period, the Company did not experience any illegal or understand employees' evaluations of the work environment, logistics management,
irregular employment incidents. and other aspects, and continuously optimizes related work based on survey feedback.
TCL Smart Home is committed to creating a diverse, inclusive, and equal workplace Hefei Home Appliances has established a four-in-one communication channel,
environment, and firmly opposes all forms of discrimination, harassment, and bullying. consisting of physical suggestion boxes, direct departmental feedback, employee
In recruitment, training, promotion, and other aspects, it does not discriminate against
representative communication, and a dedicated complaint hotline, to ensure
employees based on gender, age, race, religious belief, disability, marital status, or other
factors. Hefei Home Appliances has issued the Anti-Discrimination Management Procedure convenient and efficient expression of employee demands. The Company has
to implement the principle of equal pay for equal work and ensure equal employment rights established a labor union to actively collect and reflect employee opinions and
for male and female employees. Homa Appliances has formulated the Employee Behavior suggestions, and has simultaneously released the Grievance and Complaint
Management Measures, clarifying the anti-discrimination and anti-harassment handling Management Procedure to clarify the process for handling employee concerns. A
procedures, establishing a women's federation organization to safeguard the rights and full-process closed-loop mechanism has been established, encompassing "demand
interests of female employees, providing suitable positions and special allowances for submission - dedicated follow-up - timely resolution - result feedback," to ensure
disabled employees, and supporting their career development. timely feedback on employee demands and opinions.
Homa Appliances has formulated the Notice on Further Improving Communication
TCL Smart Home Channels for Employees to broaden the communication paths between employees and
the Company. Employees of Homa Appliances can provide opinions and suggestions
TCL Smart Home
There are 293 disabled employees Employee satisfaction to the Company through various channels such as the president's email, complaint
and suggestion mailbox, corporate OA email, and the "Homa Talks" official account.
supervisors and employees to ensure smooth and efficient internal communication.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Co-create a Collaborating Community Ecosystem
Employee Welfare and TCL Smart Home strictly abides by relevant national laws and regulations, legally ensuring
that employees enjoy statutory holidays such as maternity leave, paternity leave, and Employee Training and Development
Care breastfeeding leave. Additionally, it provides a range of welfare benefits including free
dormitory housing, overtime allowances, meal subsidies, full-attendance bonuses, high-
temperature allowances, and transportation allowances. TCL Smart Home regularly TCL Smart Home continues to promote employee capability development. Led by
organizes various cultural, sports, and major holiday activities, and equips the dormitory Governance the Human Resources Department, a comprehensive employee development system
area with leisure facilities such as billiard rooms, dance halls, and movie theaters, enriching has been established, and a diversified talent training plan has been formulated to
employees' leisure time and enhancing their sense of belonging and well-being. encourage employees to continuously learn and enhance their abilities.
TCL Smart Home has always adhered to the core concept of "achieving global
Strategy leadership with first-class talent". While continuously introducing high-end scientific
research talents in the fields of refrigerators and washing machines, it has been
improving its employee training and development system, strengthening talent
cultivation and capability building, and driving core technological innovation and
high-quality development with a team of high-quality talents.
Potential
Time range Stakeholders
Impact Main types of risks and opportunities financial
of impact affected impact
Provide employees with continuous Risks: No major risks have been
learning and development Short-term identified for this topic. Operating
Homa Appliances held a special event for the Mid-Autumn Festival opportunities, enhance their costs
Opportunity: The enterprise can improve
professional abilities and long-term
medium- Self- its employee training and development
employment competitiveness, and Operating
TCL Smart Home has established nursing rooms at its various production bases, term operation system, enhance organizational
cultivate professionals who can revenue
focusing on the needs of female employees during lactation. Hefei Home Appliances competitiveness, strengthen market
adapt to technological changes and
has formulated the Risk Management Procedure for Pregnant and Lactating Mothers, adaptability, attract and retain talents,
industrial upgrading for the industry long-term
implemented parental leave policies, and comprehensively protected the legitimate and lay a solid foundation for the
and society.
rights and interests of female employees. Homa Appliances focuses on caring for Company's sustainable development.
female employees and special groups, providing flexible office arrangements for female
employees with children under 12 years old, helping employees balance work and family.
In addition, it actively employs disabled employees, regularly conducts condolences for Impact, Risk, and Opportunity Management
special employees, and provides special subsidies to employees in difficulty.
Talent Attraction TCL Smart Home regards talent as the driving force for the Company's development
and continuously expands its talent acquisition channels. Hefei Home Appliances
enhances its talent brand presence through campus lectures, job fairs, and other
activities, while promoting internal referrals and internal appointments to enhance
employee internal mobility and optimize talent resource allocation. Homa Appliances
attracts outstanding talents through channels such as corporate open days and
internal referrals, and collaborates and conducts recruitment lectures with 20
universities and colleges including South China University of Technology and Central
South University. In the recruitment process, a "double-check" screening method is
implemented, with the Human Resources Department conducting initial screening
and evaluation and the employing department conducting final interviews, to ensure
a match between the person and the position.
Homa Appliances held an International Women's Day festival event
Employee In terms of compensation management, TCL Smart Home has established a
comprehensive compensation system and regularly conducts market research on
Compensation and compensation to ensure its competitiveness in the market. The Company closely
links compensation with performance, implements a differentiated compensation
Indicators and Targets Performance Evaluation incentive mechanism, and regularly optimizes the job level system and compensation
standards based on the Company's strategy, employee performance, and ability
levels, ensuring fair, just, and transparent compensation distribution.
Targets Progress during the reporting period
In terms of performance evaluation, TCL Smart Home has established a systematic
• The signing rate of labor contracts is 100% performance evaluation system, implementing comprehensive performance
evaluations based on job characteristics, and continuously improving the
• The coverage rate of Five Social Insurances and One
• Protect the legitimate rights and interests of employees, performance complaint mechanism to ensure fairness and impartiality in performance
Housing Provident Fund is 100%
continuously improve the construction of employee appraisal, thereby driving the continuous optimization of its performance
welfare system, and promote diversification and equality • The ratio of female employee is 30% management system. Hefei Home Appliances has established a Performance Floating
work. System, set up a standardized evaluation and assessment system, and utilized tools
• Number of disabled employees is 293 such as 360-degree evaluation and engagement evaluation, combined with talent
inventory, job qualifications, data analysis, and other methods, to dynamically
• Number of employees from ethnic minorities is 2,290
assess employee performance and optimize the salary structure. In addition, Homa
Appliances has formulated the Performance Management Measures, systematically
• Strengthen employee communication and promote • Employee satisfaction is 100%
carrying out job performance and organizational performance assessments, and
efficient problem-solving. • Number of labor union members is 11,463 establishing recognition mechanisms such as "Monthly Star" and employee honor
roll to provide positive motivation for employees with excellent performance.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Co-create a Collaborating Community Ecosystem
Employee Training and TCL Smart Home is committed to establishing a smooth employee promotion channel
and ensuring the standardization and fairness of employee career development. Hefei Talent training program of Homa Appliances
Development Home Appliances has formulated systems such as the Regulations on Rewards and
Punishments Management, with job value, performance contribution, and ability level as
the core evaluation dimensions in the promotion selection and excellence award process. Outstanding Talent Program Talent Development Program
Homa Appliances has established a dual career development path for management
and technical channels, clarifying the promotion standards and qualifications for both To facilitate the rapid growth of fresh graduates, Homa The "Talent Development Program" backup team leader
channels. In terms of the technical channel, the Company organizes professional and Appliances has established a systematic training program aims to cultivate grassroots management talents
technical personnel title evaluations annually in accordance with the Management system for management trainees participating in the with management capabilities and self-awareness,
Outstanding Talent Program. Through one-on-one and reserve frontline key personnel. The Company
Measures for the Evaluation of Technical Staff Titles. Meanwhile, Homa Appliances
guidance from professional mentors, management has customized courses such as "Role Awareness and
implements the "Talent Flow Plan" to provide employees with internal job transfer
trainees will smoothly adapt to and integrate into the Execution" and "Interpersonal Leadership" for the
opportunities, promoting mutual development between employees and the Company. Company during the one-year mentoring process, trainees, and comprehensively enhances the job skills of
completing their role transition. backup team leaders through practical sessions such as
TCL Smart Home has established a systematic talent development mechanism, and
case analysis, group discussions, and simulation exercises.
has carried out diversified talent cultivation projects centered around capability
enhancement and job progression needs, continuously improving the construction of
internal learning platforms and striving to build a high-quality, professional talent team. Elite Program Talent Gathering Program
Hefei Home Appliances implements a dual-mentor training system, laying a solid talent
foundation through scientific selection and systematic cultivation, and has established The "Elite Program" (Training Program for Managers) According to its strategic needs, the Company aims
TCL Smart Home is targeted at newly promoted grassroots managers. to cultivate outstanding reserve middle-level leaders
overseas factory training programs to reserve international talents and provide strong
support for global business layout. Homa Appliances has formulated differentiated Through various forms such as intensive training, among high-level employees. The training content
Total investment in employee training mentor coaching, symposiums, sharing sessions, and encompasses classroom instruction, project practice,
training programs for employees at all levels, established management systems such
as Training Management Measures and Instructor Management Measures, continuously on-the-job practice, combined with practical business extreme challenges, and exchange and sharing, helping
optimized training processes, improved the professional capabilities of instructors, issues, it helps managers smoothly complete their role trainees enhance their comprehensive abilities.
comprehensively enhanced the overall quality of employees, and promoted the transition, enhance management skills, and cultivate Successful graduates will be included in the backup
and reserve talents for enterprise development. middle-level leader talent pool.
construction of the "Homa University" internal learning platform, providing employees
with an efficient and convenient learning and development channel.
Future Leader Program
Targeting engineers, specialists, and team leaders, the Company aims to cultivate a group of outstanding backup
Talent training system of Hefei Home Appliances grassroots leaders in accordance with its strategic needs. The training encompasses classroom instruction, project
practice, extreme challenges, and exchange and sharing, comprehensively enhancing the comprehensive abilities of
the trainees. Those who successfully complete the training will be included in the pool of backup grassroots leaders.
Eagle series training programs Newly-appointed series training programs
Based on the enrollment year, threshold objectives, For new managers, department heads, directors,
ability indicators, a leadership development system and other management personnel, special training
has been designed for fresh graduates, progressing sessions will be conducted to focus on enhancing
from "young eagle", "flying eagle" to "elite eagle". their management skills and leadership abilities. This
Additionally, training programs for newly appointed will help them better adapt to the role transition and
and high-potential talents have been established to
effectively perform their management functions.
assist them in rapidly adapting to the workplace and
enhancing their leadership skills.
Professional training programs Learning platform and resources development
The Company regularly carries out professional ability The Company establishes diversified public learning
training based on employees' job nature and work platforms such as "T-School", open to all employees, "Outstanding Talent Program" Star Power "Talent Development Program" training "Elite Program" cadre training
content to ensure the efficient implementation and and provides rich learning resources and flexible training
smooth execution of organizational strategic projects. learning methods.
"Talent Gathering Program" training "Outstanding Talent Program" training On-site training for internal trainers of
Homa Appliances
Indicators and Targets
Targets Progress during the reporting period
• Focus on talent development, clarify promotion channels and • The investment in employee training amounted to
paths, and establish a comprehensive talent training system. 215.55 ten thousand RMB
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Co-create a Collaborating Community Ecosystem
Occupational Health and Safety
of occupational health risks in accordance with the System for Identification and Control of
Occupational Health, Safety and Environment Potential Risks, and further improves safety
management measures through documents such as the Special Operation Safety Management
System and Hazard Source Identification, Risk Assessment and Control Procedure,
TCL Smart Home supervises its subsidiaries to establish EHS governance structures based strengthening the safety protection configuration of mechanical equipment, adopting safety
Governance on their respective operational conditions. Among them, Hefei Home Appliances has interlock devices and visual warning signs, and effectively reducing equipment operation risks.
established an Occupational Health and Safety Committee in accordance with relevant
regulations on occupational health and safety, which is responsible for coordinating research, Regarding emergency management, Hefei Home Appliances has promoted the operation
deployment, and guidance of various safety management tasks. Homa Appliances has set of the emergency management system, strictly implemented the emergency response
up a Safety Production Committee, with the deputy general manager in charge of safety procedures for safety accidents, facilitated collaborative responses from various
and environmental protection responsible for the overall management of the system. departments, swiftly handled dangerous situations, clarified responsibilities, and carried
Through regular risk identification and high-risk operation control, emergency management out rectification and optimization. The Company has added the Emergency Response Plan
capabilities are improved, and the overall level of safety management is strengthened. for Sudden Illness of Manufacturing Employees in the White Goods BU Washing Machine
to standardize on-site emergency response measures, material preparation, and accident
handling procedures. During the reporting period, Hefei Home Appliances planned to
Hefei Home Appliances adheres to the safety management philosophy of "safety first,
Strategy implement 37 emergency drill plans and actually organized and completed 42, including 5
prevention foremost, and comprehensive management," actively implementing the safety
new drills related to hazardous materials, exceeding the annual plan. At the same time, the
production responsibility system. Homa Appliances adheres to the safety management
Company further promoted the signing of safety responsibility commitment letters covering
policy of "following the path of scientific enterprise development, conducting compliance
all employees and positions, strengthening the implementation of safety responsibilities.
management, caring for life, and creating a safer and more comfortable environment for
employees," continuously improving the safety management system, and effectively ensuring Homa Appliances has formulated the Emergency Response Plan for Production Safety
the occupational health and life safety of employees. Accidents and the Emergency Preparedness and Response Procedures to provide clear
operational guidelines for handling emergencies. Each factory is equipped with fire and
Potential chemical leakage alarm systems, automatic broadcasting systems, as well as automatic fire-
Impact
Time range Stakeholders
Main types of risks and opportunities financial fighting sprinkler systems, safety ventilation systems, fire hydrants, emergency lighting, and
of impact affected
impact evacuation indicators, among other emergency facilities, to comprehensively enhance the
capability to respond to and handle dangerous situations.
Risks: Negligence in occupational health
By providing full- management can easily lead to personal injuries
process occupational Short-term in the workplace, resulting in legal proceedings
health management and and related penalties for the enterprise. Operating
regular safety training, cost
medium-
the occurrence rate of Self-operation Opportunities: The enterprise attaches great
term
occupational diseases importance to the safety and health of its Compliance
and accidents has been employees, safeguards their rights and interests, cost
effectively reduced, ensuring long-term enhances stability and production efficiency,
employee safety. and simultaneously consolidates the Company's
image and reputation.
Impact, Risk, and Opportunity Management
TCL Smart Home places the utmost importance on safe production and employee Homa Appliances conducts special safety inspections for special operation positions and places
Safe Production occupational health, continuously establishing a clear full-chain safety management system in
areas such as chemical control, high-risk operations, emergency response, safety culture, and
occupational health. Its subsidiaries have improved special systems, strengthened practical
control, conducted regular training and drills, implemented compliance requirements, fortified TCL Smart Home continues to promote the construction of a safety production culture, regularly
Safety Culture Promotion organizing various safety activities and special training sessions during the Safety Production
the production safety line, and safeguarded employee health. The Company has also extended
safety management to its suppliers. During the reporting period, Homa Appliances updated Month to continuously strengthen employees' awareness of occupational health and safety,
the Related Party Safety and Environmental Management System, further strengthening the and enhance their safety knowledge and skills. Hefei Home Appliances has issued the
safety protection for supplier personnel visiting the factory. It clarified that all personnel Regulations for Occupational Health and Safety Training Management to further standardize the
must possess relevant operational qualifications before entering the site and sign a safety organization and implementation of safety training work. Homa Appliances strictly implements
notification, reinforcing the responsibilities and obligations of both parties in safe production. the three-level safety education for new employees before they join the Company, and conducts
regular training focusing on emergency rescue, fire safety, mechanical safety risk prevention
Regarding chemical management and control, Hefei Home Appliances has formulated and and control, comprehensively strengthening the foundation of safety management.
implemented the Regulations on Hazardous Substance Process Management, regularly
conducted chemical risk assessments, and ensured that operations comply with relevant
standards and requirements. It has also obtained the certification of Level 2 Enterprise of Safety
Production Standardization. Homa Appliances has formulated systems such as the Chemical Homa Appliances' eighth factory conducts fire emergency drills
Safety Management Measures and the Hazardous Goods Receiving Procedure, establishing
a comprehensive management system covering hazardous chemicals, including Safety Data
Sheets (SDS) and labels for hazardous chemicals, receiving and unloading, storage and use, In June 2025, in order to implement the fire safety policy and
personnel training, and safety inspections. The Company regularly organizes specialized enhance employees' fire emergency response capabilities, the
chemical safety training focused on operational procedures, accident prevention, and safety team of Homa Appliances' eighth factory organized a
emergency response to chemical spills. Employees' safety skills and operational proficiency are drill for all day-shift employees to simulate a scenario where
tested through theoretical exams, practical drills, and on-site inspections. a mobile phone placed in the foam area of the box bottom
support caught fire due to spontaneous combustion. Each
In terms of high-risk operation control, TCL Smart Home has established strict operating emergency response team was assigned specific tasks such as
specifications for high-risk operations such as hot work, climbing, and cyclopentane fire extinguishment, evacuation, cordoning off, and search and
unloading, achieving real-time monitoring of hidden dangers through the installation of rescue. The planning for this drill was detailed, and each team
monitoring equipment and sensors to ensure that operational risks are controllable. Hefei responded swiftly. The dormitory area was also included in the
Home Appliances implements strict risk identification and approval procedures for high-risk evacuation scope, and a detailed evacuation route map was
operations in accordance with the Regulations on the Management of Hazardous Operations, drawn. Moving forward, the safety team of the eighth factory
strengthens the management of operator qualifications, strictly enforces the requirement of will continue to focus on enhancing fire safety and applying the
holding certificates for employment, and ensures safety and compliance throughout the entire drill procedures to actual production. Homa Appliances' eighth factory conducts fire emergency drills
operation process. Homa Appliances, on the other hand, systematically manages key areas
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Co-create a Collaborating Community Ecosystem
TCL Smart Home has always been committed to providing comprehensive health and safety
Occupational Health protection for its employees and strictly complies with the occupational disease prevention
Management regulations in all its operational locations. To effectively reduce the risk of occupational
diseases, the Company requires employees in relevant positions to regularly participate
in occupational disease prevention training, and requires employees to undergo regular
pre-employment, in-service, and post-employment occupational health examinations to
ensure they possess the necessary prevention and response capabilities. In high-risk work
environments, employees must wear personal protective equipment such as earplugs and
dust masks to ensure safety during work. Employees in positions with occupational disease
hazards are issued an Occupational Disease Hazard Position Notification to facilitate the
timely detection and prevention of potential occupational health risks. During the reporting
period, TCL Smart Home did not experience any occupational disease incidents.
In addition, TCL Smart Home conducts occupational health knowledge dissemination
activities for all employees every year through occupational health awareness week and
systematic annual training, continuously enhancing employees' awareness of occupational
disease prevention and self-protection capabilities. To further improve the overall health
level of employees, the Company regularly invites medical personnel to conduct lectures on
common disease medical knowledge and health, helping employees enhance their awareness
of daily health management, thereby promoting their long-term health and well-being.
Homa Appliances occupational disease prevention and control training courseware
Indicators and Targets
Targets Progress during the reporting period
• No major occupational safety accidents caused
• Continuously create a safe and stable working environment, promptly by production safety have occurred.
eliminate risks through a normalized hidden danger investigation • A total of 825 occupational health and safety
and rectification mechanism, avoid major work-related accidents and training sessions were held, attracting 186,666
related losses, and effectively safeguard employee health and safety. employee participation, with an average training
duration of 1 hour per employee.
Community
TCL Smart Home actively fulfills its corporate social responsibility, regularly organizes
public welfare activities, and encourages employees to participate in volunteer services,
Development
demonstrating its social responsibility through concrete actions and supporting the high-
quality development of social welfare undertakings.
Hefei Home Appliances actively carries out employee volunteer activities, and organizes
science education and research activities for young people to enhance their scientific
and technological literacy through immersive experiences, stimulate their enthusiasm
for scientific exploration, and promote the popularization of science and technology
education. Homa Appliances mobilizes its employees to actively participate in public
welfare volunteer services. In the field of ecological environmental protection, it actively
participates in ecological restoration and energy conservation and emission reduction
projects. In community development, it supports the improvement of community
TCL Smart Home infrastructure and carries out various community service activities. Through participating
in public welfare activities such as educational support and elderly care, it cares for
External donations vulnerable groups such as people in difficulty, disabled people, the elderly, and children.
the Countryside" and "Trade-in" activities organized by governments at all levels, striving
to bring its high-quality, cost-effective products to rural areas, thereby helping to improve
the quality of life and access to consumer goods for local residents.
Homa Appliances has been awarded the China Red Cross
Dedication Medal
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Consolidate Governance Foundations
Consolidate
Governance
Foundations
TCL Smart Home upholds the core values of integrity, transparency, and
respect, adheres to the leadership of the Party, continuously improves
the top-level design of corporate governance, and builds a sound
compliance, internal control, and risk management system. At the same
time, the Company steadily promotes data and information security
protection work, effectively safeguarding the legitimate rights and
interests of all stakeholders and laying a solid governance foundation
for the Company's high-quality development and stable operation.
GOVERNANCE 66
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Consolidate Governance Foundations
Party Leadership Corporate Governance
Guided by the theories of the Party, TCL Smart Home has thoroughly studied and TCL Smart Home has established a corporate governance structure consisting of
Governance and implemented the important spirit of the Party, continuously strengthened the core Governance the shareholders' meeting, the Board of Directors, and the Management, clearly
role of party building leadership in the Company's strategic planning and operation delineating the roles and responsibilities at each level and formulating corresponding
Strategy management, and effectively transformed the political and organizational advantages rules of procedure to achieve effective checks and balances among decision-making,
of the Party into the efficiency and development advantages of corporate governance. execution, and supervision.
The general Party branch of the Company has continuously strengthened Party
building work, solidly promoted the standardized development of Party branches,
strictly implemented various organizational life systems, and continuously enhanced
cohesion and execution. Each Party branch closely focuses on the actual situation of Shareholders' Meeting
the Company's business operations and development, conscientiously implements
the requirements of the superior Party organizations, regularly conducts self- Strategy and Sustainability
examination and self-correction, actively promotes the deep integration of Party Committee
building work with business development, team building, risk control, and fully
leverages the role of the Party organization as a fighting bastion and the exemplary
Nomination Committee
role of Party members, thereby providing a strong organizational guarantee for the
high-quality development of the Company. Board of Directors
Remuneration and
Appraisal Committee
TCL Smart Home promotes party building with a focus on implementing the spirit
Impact, Risk, of the eight-point decision on improving Party and government conduct. Relying on Secretary of the Board
Audit Committee General Manager
various forms such as "Three Meetings and One Lecture" system, thematic Party days, of Directors
and Opportunity and online learning platforms, the Company systematically organizes theoretical
Management learning and special education, guiding party members and cadres to build a solid
ideological foundation and strictly adhere to the bottom line of discipline. Meanwhile,
Financial Management
the Company promotes party members to play a leading role in business challenges,
Administration and
Legal Compliance
Zhongshan Office
Homa Appliances
General Manager
service improvement, and innovative development by setting up party member
Internal Control
HR Department
Department
Department
Department
Department
Hefei Home
Appliances
pioneer posts and party member responsibility areas, effectively promoting the deep
Securities
Office
integration of party building and business development.
TCL Smart Home
Number of party members is 223
The Board of Directors of the Company currently consists of 7 directors, including
Number of new party members is 28 3 independent directors，accounting for 43%. The composition and election
procedures strictly comply with relevant laws and regulations as well as the
requirements of the Articles of Association. The Board of Directors has established
the Strategy and Sustainability Committee, Nomination Committee, Remuneration
and Appraisal Committee, and Audit Committee. The members of each special
committee are elected by the Board of Directors, providing professional support for
Leading Party Building to Strengthen Skills, Building Dreams with the standardized operation and sustainable development of the Company.
Craftsmanship to Drive Development
TCL Smart Home adheres to the principles of compliant and efficient corporate
In November 2025, Homa Appliances held a technical competition under the Strategy governance, built on a clear governance structure and a diverse, professional
theme "Leading Party Building to Strengthen Skills, Building Dreams with decision-making body. It is committed to continuously enhancing decision-making
Craftsmanship to Drive Development." More than 120 party member employee efficiency and governance standards, ensuring the Company's long-term sustainable
representatives participated. This party building activity focused on core skills development through effective governance practices.
such as copper-aluminum welding and quality inspection, with Party members
taking the lead in demonstrating their expertise and competing on technical
proficiency. This activity helped implement the approach of "nurturing talent
and promoting learning through competition," injecting a powerful driving force
into the Company's efforts to identify key technical talents and build a solid Potential
foundation for talent development. Impact
Time range Stakeholders
Main types of risks and opportunities financial
of impact affected
impact
Improve governance
Risks: No major risks have been identified for
structure and decision-
Indicators and Targets Short-term this topic.
making mechanism, enhance
operational transparency and Opportunities: By enhancing governance
responsibility implementation medium- Self- Market
Targets Progress during the reporting period diversity and professionalism, establishing
level, promote standardized term operation financing
a positive corporate image, and bolstering
• Continuously strengthen the construction of the Party operation and scientific stakeholders' confidence in the enterprise
member team, carry out Party building activities in an • There are 223 party members, including 28 new party decision-making of the long-term can attract more investment and cooperation
orderly manner, and promote the deep integration of members recruited this year. Company, and safeguard opportunities.
Party building with business development. investors rights.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Consolidate Governance Foundations
TCL Smart Home adheres to the philosophy of proactive and transparent information
Impact, Risk, and Opportunity Management Information Disclosure disclosure, strictly complies with laws and regulations such as the Administrative
Measures for Information Disclosure of Listed Companies and the Guidelines for the
TCL Smart Home strictly complies with the Company Law of the People's Republic of China, Regulation of Listed Companies No. 10—Market Value Management, and has established
Corporate Governance the Securities Law of the People's Republic of China, the Rules Governing the Listing of and continuously improved a series of internal governance systems including the
System Shares on Shenzhen Stock Exchange, and other relevant laws and regulations as well as Information Disclosure Management System, the Regular Report Preparation and
the regulatory requirements of the exchange. Guided by the Articles of Association, and Disclosure Management System, and the Investor Relations Management System.
supplemented by supporting rules and regulations such as the Independent Director It ensures the authenticity, accuracy, completeness, and timeliness of information
System and the Terms of Reference of the Strategy and Sustainability Committee of Board disclosure, effectively safeguarding investors' rights to know and participate.
of Directors, the Company continuously standardizes the decision-making and operational
processes of the Board of Directors, ensuring that the shareholder' meetings and Board of The Company has established a comprehensive information disclosure mechanism,
Directors meetings are convened in accordance with the law and regulations. All directors setting up regular reporting systems for matters such as foreign exchange hedging,
diligently fulfilled their duties and actively attended board meetings and specialized bank credit, related-party transactions, external guarantees/applications for
committee meetings. During the reporting period, TCL Smart Home held 2 shareholders' guarantees, and major litigations. It also regularly monitors sensitive matters and data
meetings, 6 Board of Directors meetings, and 10 meetings of specialized committees under in daily operations, evaluates matters approaching disclosure thresholds, and provides
the Board of Directors and special meetings of independent directors. timely alerts to ensure that information disclosure is conducted in accordance with
laws and regulations. During the reporting period, the Company did not experience any
TCL Smart Home The Company has established a sound internal and external collaborative supervision and violations of information disclosure regulations.
balance mechanism to ensure standardized operation. In terms of internal supervision,
The proportion of female directors independent directors and the Audit Committee continuously monitor the financial status
and the legality and compliance of the performance of directors and senior management.
In terms of external supervision, the Company actively accepts the supervision of
TCL Smart Home
professional institutions such as securities regulators, accounting firms, and law firms. The
annual financial report is independently audited in accordance with the law to ensure the
authenticity and accuracy of financial information.
Investor communication Number of institutions Participants
On this basis, the Company actively promotes the diversification of the Board of Directors,
continuously optimizing the structure in terms of gender, age, professional experience, cultural events conducted covered engaged
and educational background, among which the proportion of female directors is 43%.
To ensure the independence and performance compliance of independent directors, each
independent director is required to submit an annual duty performance report to the
Company's annual general meeting of shareholders, explaining their fulfillment of duties. Inquiries have been responded on "Investor Relations Activity Record
Independent directors are also required to perform an annual self-assessment of their the "Interactive Easy" platform Forms" disclosed
independence and submit the findings to the board of directors. The board then evaluates
the independence of the independent directors and issues a special opinion accordingly.
TCL Smart Home is committed to protecting the rights and interests of shareholders,
Protection of Investors and strictly implements various safeguard measures in accordance with the Articles Indicators and Targets
Rights of Association. Shareholders' meetings are held through a combination of on-site
participation and online voting, and a cumulative voting system is implemented during
the election of directors, fully guaranteeing the participation and voting rights of all
Targets Progress during the reporting period
shareholders, especially small and medium-sized investors.
• Hold 2 shareholders' meetings and 6 Board of Directors
To maintain good investor communication, the Company actively engages in one-on-one • Continue to improve governance structure to ensure that
research, strategy meetings, performance presentations, and other activities to maintain meetings.
all major decision-making procedures are compliant
deep interaction with investors. At the same time, the Company has established dedicated and fully deliberated. Place high importance on investor • The proportion of female directors is 43%.
sections for "Complaints and Suggestions" and "Investor Relations" on its official
relations management, strictly manage information
website, and communicates with investors through investor relations emails, hotline, • Achieve the goal of "zero violations", "zero omissions",
and the "Interactive Easy" platform of the Shenzhen Stock Exchange, building a diverse disclosure, and safeguard investors rights.
and "zero corrections" in information disclosure.
communication channel that covers both online and offline.
Awards and honors of TCL Smart Home
Awarded by Honor
www.cls.cn 2025 Most Valuable Investment Award in Capital Market
New Fortune Magazine
China Fund Excellent Board Secretary, 2025 China Listed Companies Yinghua Award
Securities Times The 19th Sunshine Board Secretary for Listed Companies in China
JRJ.com The 14th Jinzhi Award for Outstanding Investor Relations Team (IR)
Top 100 Board Secretaries
Ju Dong Mi
Top 100 IRM Companies
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Consolidate Governance Foundations
Compliant Operation and Risk Management
TCL Smart Home operates on the basis of legality and compliance, proactively identifying
Strategy opportunities and risks in the external environment. Based on this, it has established a compliance
operation and risk management system that aligns with its business characteristics, ensuring the
orderly operation of various businesses within a standardized and transparent framework.
TCL Smart Home has established the Internal Audit and Internal Control Department and
Governance appointed full-time internal auditors to independently perform internal audit functions. Potential
The department conducts inspections and assessments on the operational quality of the
Time range Stakeholders
Impact Main types of risks and opportunities financial
Company and its subsidiaries, the completeness and effectiveness of internal controls,
of impact affected
impact
the use of expenses, and asset management, promoting the effective operation of internal
controls. The internal audit department is directly responsible to the Board of Directors Risks: Insufficient understanding of updates to
and independently exercises audit powers under the guidance of the Audit Committee. policies and regulations may increase compliance
Improve compliance
risks, affecting business continuity and expansion;
management and
Based on this, Hefei Home Appliances has established an Internal Control Committee, Short-term Upstream inadequate risk management may weaken the
risk identification
assigning dedicated personnel to manage the Company's compliance and internal control value chain Company's overall response capabilities, resulting in
mechanisms, enhance
work, with a focus on the management of departmental position checks and balances, adverse impacts in various aspects such as finance, Compliance
institutional construction, medium-
seal management, risk assessment, and information management to ensure that the Self-operation law, customers, and reputation.
internal control, and term cost
Company's operations are compliant, efficient, and risk-controllable. Homa Appliances risk investigation, and
has established a management structure consisting of the Board of Directors, internal Downstream Opportunities: The enterprises continuously track
maintain a fair and value chain
functional departments, and business departments. The Board of Directors is responsible long-term and analyze domestic and international compliance
competitive market
for the overall supervision and decision-making of the internal control system, the internal requirements, enhance their market access capabilities,
environment.
control functional departments are responsible for the internal control of finance and reduce compliance costs, and create more opportunities
operation management, and the business departments are responsible for implementing for business expansion.
specific internal control measures of their own departments to ensure that various
business processes meet internal control requirements.
Additionally, TCL Smart Home has established a risk management organizational
Impact, Risk, and Opportunity Management
structure with clear responsibilities and distinct levels, forming a "three lines of
defense" risk management framework. This framework systematically defines the
functional division of responsibilities among various departments in risk identification, TCL Smart Home strictly adheres to the laws and regulations of the regions where its business
Compliance Operation and operations are conducted. It has established a comprehensive compliance internal control
control, and supervision, ensuring that various potential risks in daily operations are
addressed efficiently and promptly. management system and an internal compliance review mechanism, continuously refining and
detailing its compliance internal control management functions, and consistently fostering a
positive compliance culture to ensure the Company's compliance and stable operation. During
the reporting period, the Company organized key personnel from various departments to
comprehensively revise 41 internal management systems, including the Articles of Association,
The three lines of defense for risk management at TCL Smart Home
based on normative documents such as the Guidelines for Articles of Association of Listed
Third Defense Line: Internal Companies and in conjunction with its own operational management needs. This resulted in
audit department the formation of a fundamental system for the Company's internal control, further enhancing
standardized operation and management efficiency.
• Through regular audits, Hefei Home Appliances formulates the Internal Control Management Manual of TCL Home
the Company inspects the Appliances (Hefei) Co., Ltd. and the Articles of Association of TCL Home Appliances (Hefei)
operational status of various Co., Ltd. and carries out compliance management and internal control work based on these
business areas and identifies documents. It regularly reviews and updates core processes such as organizational structure and
potential risks; major decision-making, and continuously pays attention to compliance and risk management
Second in various business areas such as finance and procurement, to monitor the implementation of
• Propose improvement compliance strategies in all aspects. At the same time, Hefei Home Appliances also identifies and
suggestions to the
Defense Third
responds to external risks, such as regulatory changes, through regular comprehensive reviews,
Management;
First
ensuring the smooth implementation of new business development and major projects, and
Line Defense
Defense
Line
Line
• Responsible for independent maintaining stable operations within a compliant framework.
auditing, identifying and
Homa Appliances regularly conducts risk monitoring, promptly updates internal policies
rectifying issues, and
based on adjustments to domestic and international policies, and ensures the effective
continuously following up on
implementation and coverage of compliance policies across all business segments through
and improving progress.
Second Defense Line: Risk management internal audit reviews. Regarding external risks, Homa Appliances conducts daily, quarterly,
and internal control department and annual reviews to cover different types and scopes of situations, ensuring efficient
First Defense Line: Business department implementation and continuous improvement of compliance management. In addition,
• Formulate and refine relevant systems, policies, to manage compliance risks in overseas business, Homa Appliances follows domestic and
and procedures; international laws and regulations such as the Customs Law of the People's Republic of China
• Identify and assess risks during business and the Foreign Corrupt Practices Act, and has established the Export Compliance System.
• Oversee the risk management work of the first line operations; Through systematic process norms and audit mechanisms, it ensures that products meet the
of defense; standards and compliance requirements of the target market.
• The procurement department reduces the risk
• Regularly carry out training work. of raw material supply by screening high-quality
To systematically address external regulatory requirements and prevent operational risks, TCL
suppliers.
Smart Home continuously promotes compliance training and cultural construction that covers
all employees. The Company has established a regular training system, with training content
encompassing interpretation of laws, regulations, and internal guidelines, business ethics and anti-
corruption requirements, as well as risk identification and response ability cultivation in business
scenarios, aiming to internalize compliance awareness into employees' conscious actions.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Consolidate Governance Foundations
Risk Management TCL Smart Home has established the Internal Audit System and set up a full-process
risk management system to supervise and control potential risks. Under the guidance Business Ethics
of the Company, Hefei Home Appliances regularly analyzes key risk data using risk
matrices, databases, and early warning systems, updates risk maps, and dynamically
monitors market, financial, and operational risks through evaluation models, taking TCL Smart Home has clarified management principles and supervision requirements
measures to address high-risk areas. Homa Appliances, under the "three lines of Governance at the group level, and supervises its subsidiaries in establishing and continuously
defense" framework, has formulated the Risk Management Policy, Risk Identification improving their anti-corruption management systems. Homa Appliances has
and Assessment System, and Risk Monitoring and Reporting System, clarifying the established a comprehensive anti-corruption management system and set up an anti-
Company's risk management objectives, risk identification process, and risk reporting corruption committee composed of senior management personnel, responsible for
mechanism, and enhancing the standardization and transparency of risk management. formulating and supervising the implementation of the Company's anti-corruption
strategies to effectively prevent, identify, and respond to various corrupt behaviors.
TCL Smart Home full-process risk management system TCL Smart Home has always adhered to the "zero tolerance" principle towards
Strategy corruption. By establishing and improving the anti-corruption governance system
and fostering a culture of integrity, it implements anti-corruption and business ethics
Through business risk analysis and internal and external audits, identify initiatives to ensure that all employees and partners conduct honest and transparent
potential market, operational, financial, legal, and compliance risks of the business practices.
Company, establish risk tracking checklists and archives, and track the
Risk Identification
development and changes of risks.
Potential
Time range Stakeholders
Impact Main types of risks and opportunities financial
of impact affected
Establish a fixed risk assessment and analysis, utilizing data and information
impact
systems to analyze the probability and impact of risks. Evaluate the likelihood Strengthen the requirements Risks: Violating business ethics may trigger
and impact of potential risks across various business and functional
Risk assessment
for business ethics and Short-term Upstream legal risks and trust crises, resulting in financial
departments, and categorize and grade the risks. integrity in operations, and value chain losses and the loss of customers and partners. Compliance
reduce the interference of cost
medium-
improper transactions and Self-operation Opportunities: A well-established business
term ethics management system can ensure the
corrupt practices in the market Operating
Based on the Company's risk exposure, allocate relevant resources to carry environment by clarifying Downstream stability of corporate compliance, increase the cost
out risk control and governance work such as process construction and special behavioral norms and value chain trust of customers and partners, and facilitate
Risk control and governance long-term
sorting, in order to reduce the overall risk level of the Company. accountability mechanisms. long-term cooperation and profit growth.
The audit department regularly organizes risk reporting to the management Impact, Risk, and Opportunity Management
Risk monitoring and and the Board of Directors, reporting on the progress and results of various risk
management efforts, and conducts special reports on major risk events.
reporting
Anti-commercial TCL Smart Home strictly adheres to the United Nations Convention against
Corruption and relevant national laws, establishing and refining an anti-corruption
Bribery, Anti-corruption, governance system to ensure honest and transparent business practices. Hefei Home
To address various internal and external risks such as fluctuations in raw material Appliances, based on its internal management system, clearly defines various types
prices, market competition, exchange rate changes, export business, and credit, and Anti-unfair of corrupt behaviors and their handling methods, and legally handles employees
the Company has established a systematic risk management mechanism. Through involved in criminal acts such as corruption and bribery who have been sentenced.
continuous monitoring, dynamic assessment, and hierarchical control, it formulates Competition Homa Appliances has formulated internal regulations such as the Accountability
and implements corresponding prevention and response strategies to enhance risk Management Measures and the Integrity Management Code, clarifying operational
resistance, ensure business continuity and financial stability, and support long-term "red lines" and strictly prohibiting violations such as abuse of power for personal gain
sustainable business development. During the reporting period, TCL Smart Home and fraud. It also requires all employees, suppliers, and partners to jointly abide by
engaged an external accounting firm to conduct financial statement audits and relevant laws, regulations, and company policies.
initiated an internal special inspection of platform expense payments to identify and
prevent operational and financial risks. To further enhance employees' awareness of business compliance, TCL Smart Home
continuously conducts anti-corruption training and promotes a culture of integrity.
Through diversified educational forms, it aims to enhance employees' compliance
awareness and foster a clean and fair corporate atmosphere.
Furthermore, in order to eliminate all forms of monopoly and unfair competition, TCL
Indicators and Targets Smart Home strictly adheres to laws and regulations such as the Anti-Monopoly Law
of the People's Republic of China and Anti-Unfair Competition Law of the People's
Republic of China, regularly reviews business practices, and resolutely prevents
commercial bribery and unfair competition to maintain a fair market competitive
Targets Progress during the reporting period
• Improve the compliance internal control system, environment. Hefei Home Appliances has established a risk management system
implement compliance strategies, ensure the smooth for anti-monopoly and fair competition that encompasses risk monitoring, internal
• No major risk events have occurred, and no penalties or compliance reviews, regular legal training, and emergency response plans. Homa
operation of the risk management mechanism, strengthen
fines have been imposed for violations. Appliances explicitly prohibits all types of unfair competition and monopoly
risk prevention and control capabilities, and support the
steady development of the business. behaviors, and ensures that business activities fully comply with legal requirements
by developing risk response plans, conducting regular risk assessments, and
embedding compliance review mechanisms in key processes such as pricing, sales,
procurement, and cooperation.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Consolidate Governance Foundations
Whistleblower TCL Smart Home has established and improved its internal reporting and feedback TCL Smart Home has incorporated data security and privacy protection into its overall
mechanism to ensure smooth supervision channels and implement the responsibility
Strategy development strategy, continuously strengthening information security construction,
Protection system. Hefei Home Appliances provides a 24-hour reporting channel through the OA implementing effective control throughout the entire data process, while enhancing the
system and email, promises to respond to reporting leads within 24 hours, and sets security awareness of all employees. In doing so, it effectively protects customer privacy and
up a special investigation team to conduct verification. The investigation results are builds a solid security defense line.
publicized on the intranet. The Company also strictly implements the whistleblower
protection policy, ensures confidentiality of whistleblower information, and prohibits Potential
any form of threat or retaliation. Homa Appliances has established various reporting
Time range Stakeholders
Impact Main types of risks and opportunities financial
channels, including letters and in-person visits, employee suggestion boxes, dedicated
of impact affected
impact
phone lines, and WeChat complaints, encouraging real-name reporting. It also clearly
stipulates strict confidentiality requirements for whistleblower information and materials Risks: Inadequate information management
Strengthen the management of and data protection may lead to information
in the Accountability Management Measures, prohibiting disclosure and retaliation. Short-term Upstream
information security and privacy leakage and damage to trust, affecting business
value chain Compliance
protection, reduce the risks collaboration and operational stability. cost
posed to users and partners by medium-
Indicators and Targets Self-operation Opportunities: By establishing a robust
information leakage and abuse, term
mechanism for information security and privacy Operating
and ensure the privacy and data Downstream protection, the Company can enhance data cost
security of customers and other value chain
long-term security, strengthen trust in cooperation, and
Targets Progress during the reporting period relevant parties.
provide safeguards for stable operations.
• Continuously improve the systematic compliance and
• No commercial bribery or corruption incidents have
risk management system, and firmly implement the
occurred, and no lawsuits or significant administrative
construction of a culture of integrity that adheres to a Impact, Risk, and Opportunity Management
penalties have been imposed due to unfair competition.
"zero tolerance" approach to corruption.
TCL Smart Home strictly adheres to laws and regulations such as the Cybersecurity Law of the
Information Security People's Republic of China and continuously improves its information security management system
and institutional framework. Hefei Home Appliances has established the Information System Security
Response Plan and the Information Security Management System, clarifying the information security
Data Security and Privacy Protection
management process and responsibilities. Homa Appliances has established institutional documents
such as the Homa Appliances Information Security Management Standards and the Homa Appliances
Network and Data Center Emergency Response Plan, and organizes corresponding emergency drills
and skill training based on the above institutional documents to enhance risk response capabilities,
strengthening security operations and response mechanisms.
TCL Smart Home has established a data security governance system with clear Hefei Home Appliances comprehensively utilizes technical tools such as firewalls, antivirus software,
Governance responsibilities and standardized processes. Under the unified leadership of the Data Leakage Prevention (DLP) systems, and situational awareness platforms to establish a multi-
President, the IT management department leads the data security work, with the level technical protection system. At the same time, special data leakage prevention monitoring
measures are deployed for core devices used to handle highly confidential data, providing
participation and execution of various business and functional departments, jointly
comprehensive information security protection. Homa Appliances effectively enhances the level
promoting the implementation of data security and privacy protection. of information security protection by deploying systems such as bastion hosts, firewalls, threat
situational awareness, and terminal control.
Meanwhile, TCL Smart Home continues to promote and improve information security auditing,
strengthening the supervision and evaluation of information security implementation. Hefei Home
Data security and privacy protection governance framework of TCL Smart Home Appliances conducts regular internal and external information security audits every year and
obtained ISO 27001 information security management system certification during the reporting
period. Homa Appliances has established an information security audit mechanism that combines
Responsible for approving the overall information security internal and external audits, focusing on dimensions such as system implementation, system
strategy, management norms, and technical standards vulnerability scanning, and network-wide security traffic monitoring. This proactive approach
Leader CEO
of the Company, as well as making decisions on major aims to identify and rectify potential security risks, thereby continuously improving the level of
information security incidents. information security management.
Leadership
group In addition, to strengthen the construction of information security culture, Hefei Home Appliances
Responsible for overall information security planning, regularly sends security-themed promotional emails, establishes an online curriculum system, and
Head of IT Management management standard review, and coordination of organizes annual information security assessments covering all employees. The relevant training
Deputy leader
Department information security construction, and participating in and assessments have covered more than 70,000 participants, effectively enhancing employees'
decision-making regarding information security incidents. security awareness and practical abilities.
Relevant personnel from Responsible for the implementation of information security
Information
the IT Management system construction, system formulation, and technical Conducting information security training to establish awareness of confidentiality responsibility
security team support work.
Department
On July 25, 2025, Homa Appliances organized an information
The head of each department serves as the primary security and confidentiality awareness training activity
responsible person for information security within for newly recruited management trainees, with a total
Execution group Business team their department, being accountable for enforcing and of more than 150 participants. This training helps new
overseeing information security standards, as well as employees establish a security concept at the early stage of
Head of each department/ approving information security permissions. employment, laying an important foundation for consciously
branch factory abiding by information security norms in subsequent work.
Responsible for inspecting the implementation of
Supervision information security standards, regularly reporting relevant
team issues and implementing incentive measures, and forming
supervision reports. Homa Appliances conducts training on information security
and confidentiality awareness
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Consolidate Governance Foundations
TCL Smart Home has built a multi-layered and highly available network architecture,
Business Stability continuously enhancing the reliability and risk resistance of the network
infrastructure. Hefei Home Appliances adopts a model combining dedicated internet
lines with dual-active devices and Software-Defined Wide Area Network (SD-WAN)
technology, effectively ensuring the high availability of network connectivity and
optimizing the experience of remote office work and data transmission. Meanwhile,
a dual-machine hot standby mechanism is deployed for core devices to avoid single
point failures and further enhance the overall stability and business continuity of the
system. Homa Appliances deploys dedicated internet lines from multiple operators to
achieve automatic failover, ensuring redundant and reliable external network access.
The internal network construction adopts a "dual-line + dual-device + 5G" approach,
providing solid support for production operations and daily office work.
TCL Smart Home is committed to building a security management mechanism that
Data Security and covers the entire data lifecycle, systematically reducing the risks of data leakage
and abuse. Hefei Home Appliances has formulated the Data Security Management
Privacy Protection Requirements, clarifying internal data classification and grading standards,
standardizing the use and control processes of data at all stages of the lifecycle, and
ensuring data security. Homa Appliances has implemented the Homa Appliances
Data Center Management Standards, strictly managing account permissions,
strengthening data classification protection and transmission encryption, and
executing regular backups and file access control, systematically ensuring data
security and controllability at all stages.
TCL Smart Home attaches great importance to customer privacy protection,
integrating privacy protection into its business operations and product services.
Hefei Home Appliances, in accordance with the TCL Industry Privacy Management
System and other privacy management system documents, clarifies the management
regulations for personal information in various aspects such as collection, processing,
use, sharing, and storage. It strictly implements privacy protection requirements in
the processes of product design and development, marketing, and other aspects,
effectively ensuring customer privacy security.
Indicators and Targets
Targets Progress during the reporting period
• Improve the data security and privacy protection system,
• No data security incidents or customer privacy breaches
strictly implement various management measures and
have occurred.
technical protections, and prevent related risks.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Outlook
Outlook
Looking back on 2025, TCL Smart Home advanced high-quality development by deeply integrating
ESG into its operations. Through green transformation, technological innovation, and responsible
practices, the Company continuously enhanced its brand value and industry influence, laying a solid
foundation for its global expansion and sustainable development. Looking ahead, TCL Smart Home
will build on this momentum, leveraging its role as a Worldwide Olympic Partner to further advance
its global strategy and technological innovation, and to shape a smarter future. The Company will
continue to promote green production, deepen technological research and development, and
enhance service capabilities, contributing to the achievement of the United Nations Sustainable
Development Goals.
Deepening Green Transformation to Build a Low-Carbon Future
We will remain committed to green and low-carbon development by integrating carbon reduction
principles throughout the entire product lifecycle. Through green technological innovation, we aim
to develop energy-efficient and durable products, continuously reducing carbon emissions across
the full lifecycle of our products. At the same time, we will further improve resource efficiency,
promote material recycling and waste reduction, and facilitate the transition of production and
operations toward resource-efficient and circular models. We will also work closely with value chain
partners to build a green ecosystem and jointly advance supply chain decarbonization, actively
contributing to the achievement of our "carbon peaking and carbon neutrality" goals.
Delivering Technology with Purpose and Fostering an Inclusive Ecosystem
We remain committed to high-quality development and to creating value for all stakeholders. For
consumers, we will continue to strengthen end-to-end product quality management, meeting
user needs with reliable quality and high-quality services, while leveraging innovation to deliver
intelligent and healthy living experiences. For employees, we will further enhance employee rights
protection and talent development systems, expand diversified career pathways, and stimulate
employee growth and innovation. For society, we will continue to address the needs of vulnerable
groups, actively engage in public welfare initiatives, and leverage technological innovation to
advance social progress.
Strengthening Corporate Governance for Sustainable Growth
We will continue to optimize our ESG governance system, establish multi-dimensional
communication mechanisms, and actively engage with stakeholders to align corporate development
with societal expectations. At the same time, we will further strengthen compliance and internal
control systems, improve risk management mechanisms, and enhance our capabilities in risk
identification and response, providing a solid foundation for long-term, stable development through
transparent and standardized governance.
Building on momentum and moving forward with determination, TCL Smart Home will remain
committed to its vision of becoming a world-leading smart home appliance enterprise. Inspired
by the Olympic spirit, we will continue to embed sustainability into our development, steadily
advancing our global, intelligent, and green transformation. By driving industry upgrading through
technological innovation and responding to societal expectations with responsible practices, TCL
Smart Home aim to create long-term value while contributing to global environmental governance,
social progress, and industry development.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Appendix
Appendix
Key Performance Table
Material Topics Indicators Unit 2025 Material Topics Indicators Unit 2025
Economic Total water consumption m? 1,572,265.00
Total revenue RMB 18,530,993,941.45
Performance
Energy and Resource
Total water withdrawal m? 1,840,843.00
Total investment in environmental protection Ten Thousand RMB 361.59 Management
Water withdrawal intensity m? / Million Revenue 99.34
Number of penalties incurred by the Company for violations
Number 0
of environment-related laws and regulations
Wastewater discharge volume Tons 268,578.00
Fines incurred by the Company for violations of
Ten Thousand RMB 0 Wastewater discharge intensity Tons / Million Revenue 14.49
Environmental environment-related laws and regulations
Compliance
Number of environment-related lawsuits resulting from -- Industrial wastewater Tons 48,460.00
Management Number 0
violations of environment-related regulations
-- Domestic wastewater Tons 220,118.00
Number of employee training sessions on environmental
Sessions 25
protection Chemical oxygen demand (COD) discharge volume Tons 3.15
Number of employees' participation in environment
Attendances 13,238 Biochemical oxygen demand (BOD) discharge volume Tons 4.42
protection training
Total GHG emissions tCO2e 156,400.60 Ammonia nitrogen (NH3-N) discharge volume Tons 0.06
Scope 1 (S1) tCO2e 14,424.98 Total nitrogen (TN) discharge volume Tons 0.08
Response to Climate
Change Total phosphorus (TP) discharge volume Tons 0.37
Scope 2 (S2) tCO2e 141,975.62
tCO2e/Million Air pollutant discharge volume m? 3,618,182,895.00
Operational Scope (S1+S2) GHG emissions intensity 8.44
Revenue
Sulfur dioxide discharge volume Tons 0.23
Tons of Standard Coal
Total energy consumption 40,532.35
Equivalent Nitrogen oxides discharge volume Tons 1.34
Tons of Standard Coal Pollution and Waste
-- Total direct energy consumption 1,707.67 Particulate matter discharge volume Tons 0.19
Equivalent Management
Tons of Standard Coal VOC Tons 5.62
-- Total indirect energy consumption 38,824.67
Equivalent
Waste discharge volume Tons 14,609.99
Tons of Standard Coal
Clean energy consumption 6,949.67
Equivalent Waste discharge intensity Tons / Million Revenue 0.79
Tons of Standard Coal -- Hazardous waste1 Tons 353.15
Energy use intensity Equivalent/ Million 2.19
Revenue -- E-waste Tons 14.02
Energy and Resource
Management
Natural gas m? 898,325.47
-- Non-hazardous Waste Tons 14,256.84
Diesel Liter 232,206.08 ---- Waste paper cartons Tons 4,109.20
Gasoline Liter 24,137.08 ---- Waste plastics Tons 599.59
Total electricity consumption kWh 291,277,290.00 ---- Waste plastic foam (EPS) Tons 74.02
-- Purchased electricity kWh 267,575,606.00 ---- Manuals Tons 1,512
-- Self-generated and consumed photovoltaic power kWh 23,701,684.00 ---- Scrap iron Tons 7,962.03
-- Purchased green electricity kWh 32,845,709.50 Total recycled and reused waste2 Tons 24.83
TCL Smart Home's hazardous waste data includes all dangerous waste generated by the Company.
The statistical scope only includes Hefei Home Appliances.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Appendix
Material Topics Indicators Unit 2025 Material Topics Indicators Unit 2025
Annual number of patent applications Number 736 Labor contract signing rate / 100%
Social insurance coverage rate / 100%
Annual number of patents granted Number 363
Employee satisfaction rate / 100%
Cumulative number of patents granted3 Number 2,725
Number of labor union members Person 11,463
Cumulative number of overseas patents granted 4
Number 16 Total number of employees Person 14,807
Number of intellectual property rights training sessions Sessions 7 By Gender
Number of male employees Person 10,394
R&D and Innovation R&D investment Ten Thousand RMB 68,029.80
Number of female employees Person 4,413
Number of R&D personnel Person 1,296
By Age Group
Number of technical personnel Person 1,414 Number of employees aged under 30 Person 7,705
Ratio of R&D and technical personnel / 18.30% Number of employees aged 30 to 50 Person 6,267
Number of employees aged above 50 Person 835
Number of innovative projects Number 34
By Educational Level
Number of industry standards participated in Number 8
Master's degree or above Person 185
Total number of suppliers Number 841 Bachelor's degree Person 1,785
Number of suppliers in Chinese mainland Number 804 College degree or below Person 12,837
Number of suppliers in Hong Kong, Macao, and Taiwan Number of employees at management level Person 505
Number 10
Supply Chain regions Employee Rights and
By Age Group
Management Protection
Number of suppliers in other regions (overseas) Number 27
Management - Aged under 30 Person 38
Number of supplier training sessions Sessions 2 Management - Aged 30 to 50 Person 417
Management - Aged above 50 Person 50
Number of trained suppliers Number 784
Number of employees at senior management level Person 26
Percentage of significant products and service categories
/ 0
assessed for health and safety impacts for improvement Senior management - Male Person 24
Percentage of sold or shipped products recalled due to
/ 0 Senior management - Female Person 2
safety and health reasons
Number of employees at middle management level Person 194
Number of incidents of non-compliance concerning the
Incidents 0
Product Quality and health and safety of products and services Middle management - Male Person 154
Safety
Total number of product recall incidents Number 0 Middle management - Female Person 40
Major administrative penalties related to safety and quality Number of employees at junior management level Person 285
Cases 0
of products and services
Junior management - Male Person 254
Monetary value related to damages from major liability
Ten Thousand RMB 0
accidents concerning product/service safety and quality Junior management - Female Person 31
Number of customer complaints Number 218 Number of new hires (annual) Person 8,214
Number of employee turnovers (annual) Person 8,441
Number of product complaints Number 5,657
Customer Service Employee turnover rate5 / 36%
Customer service training sessions Sessions 11
Number of employees from ethnic minorities Person 2,290
Customer service training attendances Attendances 815 Number of employees with disabilities Person 293
Cumulative number of patents granted refers to the number of patents granted to the Company as of the end of 2025. 5
Employee Turnover Rate = (Annual Number of Employee Departures) / (Initial Number of Employees + Annual Number of New Employees)
Cumulative number of overseas patents granted refers to the number of overseas patents granted to the Company as of the end of 2025.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Appendix
Material Topics Indicators Unit 2025 Material Topics Indicators Unit 2025
Investment in employee training (annual) Ten Thousand RMB 215.55 Total number of directors on the board Person 7
Total sessions of employee training (annual) Sessions 2,548
Number of female directors Person 3
Total employee training hours Hour 177,020
Percentage of female directors / 43%
By Gender
Training attendances - Male Hour 126,959 Number of executive directors Person 0
Training attendances - Female Hour 50,061 Number of non-executive directors (NEDs) Person 7
Corporate
Employee Training By Rank Governance
and Development Number of independent non-executive directors (INEDs) Person 3
Training attendances - Senior management 6
Hour 1,720
Number of board of directors meetings held Number 6
Training attendances - Middle management Hour 6,622
Training attendances - Junior employees / Non-management Hour 168,675 Number of remuneration committee meetings held Number 1
Total employees receiving regular performance and career
Person 3,143 Number of nomination committee meetings held Number 0
development reviews
Male employees receiving reviews Person 2,236 Number of shareholder meetings held Number 2
Female employees receiving reviews Person 907 Number of significant fines and non-monetary sanctions for
Number 0
Compliant non-compliance with laws and regulations
Expenses for safe production Ten Thousand RMB 812 Operation and Risk
Management Significant fines for non-compliance with laws and
Ten Thousand RMB 0
Number of major safety accidents Number 0 regulations
Number of safety inspections / risk assessments Number 395 Number of confirmed corruption incidents Incidents 0
Number of work-related deaths Number 0 Number of employees disciplined or dismissed due to
Incidents 0
corruption
Occupational Health Number of work-related injuries Number 42
Number of contracts with business partners terminated or
and Safety Incidents 0
Total number of days lost due to work-related injuries Days 792 not renewed due to corruption
Number of employees' occupational diseases Number 0 Number of anti-corruption training sessions Sessions 3
Number of occupational health and safety training sessions Business Ethics
Sessions 825 Anti-corruption training attendances Attendances 803
conducted
Number of persons covered by occupational health and Number of legal actions pending or completed regarding
Attendances 186,666 anti-competitive behavior and violations of anti-trust and Incidents 0
safety training
monopoly legislation
Community
External donation Ten Thousand RMB 202 Number of anti-monopoly and fair competition training
Development Sessions 1
sessions
Number of Party members Number 223
Party Leadership Anti-monopoly and fair competition training attendances Attendances 12
Number of new Party members Number 28
The statistics cover the number of employees at senior management levels.
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Appendix
Index
Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—
Sustainability Report (For Trial Implementation) Index
Chapter Guidelines Disclosure location Chapter Guidelines Disclosure location
About the report Supply Chain Risk Supply chain
Articles 44 - 45
Chapter I General Provisions Articles 1 - 10 Management management
Double materiality
assessment
Equal Treatment of
Supply chain
Small and Medium-Sized Article 46
management
Chapter II Disclosure of Sustainability Framework Articles 11 - 19 ESG governance Enterprises
Section 3 Suppliers and
Customers
Product and Service Safety
Section 1 Addressing Response to climate Article 47 Product quality and safety
Addressing climate change Articles 20 - 28 and Quality
Climate Change change
Data Security and Customer Data security and privacy
Pollution and waste Article 48
Pollutant Emissions Article 30 Privacy Protection protection
management
Employee rights and
Pollution and waste protection
Waste Disposal Article 31
management
Employee training and
Section 4 Employees Employees Articles 49 - 50
Section 2 Pollution development
Prevention and Ecosystem Ecosystem and Biodiversity
Protection Article 32 / Occupational health and
Conservation
safety
Chapter III
Disclosure of
Environmental Environmental
Information compliance management Corporate Governance Article 51 ESG governance
Environmental compliance
Article 33
management Pollution and waste
management
Section 1 Sustainability Supply chain
Due Diligence Article 52
Governance Mechanism management
Energy and resource
Energy Utilization Articles 34 - 35
management
Communication with Communication with
Article 53
Stakeholders stakeholders
Section 3 Resource Chapter V
Energy and resource Disclosure of
Utilization and Circular Water Resource Utilization Article 36
management Sustainability
Economy
Governance Compliant operation
Compliance Operation Article 54
Information and risk management
Energy and resource
Circular Economy Article 37
management
Compliant operation
Section 2 Business Anti-Commercial Bribery and risk management
Article 55
Conducts and Anti-Corruption
Rural Revitalization Articles 38 - 39 / Business ethics
Section 1 Rural
Revitalization and Social
Contribution
Social Contribution Article 40 Community Development Anti-Unfair Competition Article 56 Business ethics
Chapter IV
Disclosure of
Social Information Product quality and safety Article 57 Index
Innovation-Driven Article 42
R&D and innovation
Section 2 Innovation-Driven Chapter VI Supplementary Provisions and Interpretation
and Technological Ethics Greenhouse Gas
Article 58
Verification Statement
Technology Ethics Article 43 /
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Appendix
GRI Index
Disclosure Chapter Disclosure Chapter
GRI 1：Foundation2021 Employee rights and protection，Business
GRI 1 Introduction, key concepts and standards About the Report
GRI 2：General disclosures 2021
Entities included in the organization's sustainability
reporting 2-30 Collective bargaining agreements Employee rights and protection
Role of the highest governance body in overseeing the
management of impacts 101-5 Locations with biodiversity impacts /
Role of the highest governance body in sustainability
reporting
Evaluation of the performance of the highest governance 102-2 Climate change adaptation plan Response to climate change
body
Environmental compliance management，
and protection，Business ethics 102-10 Carbon credits /
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Appendix
Disclosure Chapter Disclosure Chapter
GRI 103: Energy 2025 207-4 Country-by-country reporting /
Energy consumption and self-generation within the 301-1 Materials used by weight or volume Energy and resource management
organization
GRI 201：Economic Performance2016 303-1 Interactions with water as a shared resource Energy and resource management
Employee rights and protection，Community
development
GRI 202：Market Presence2016 303-5 Water consumption Energy and resource management
Ratios of standard entry level wage by gender compared to GRI 305：Emissions2016
local minimum wage
Proportion of senior management hired from the local
community
Nitrogen oxides (NOx), sulfur oxides (SOx), and other
GRI 203：Indirect Economic Impacts2016 significantair emissions
GRI 306：Waste 2020
Supply chain management，Community 306-1 Waste generation and significant waste-related impacts Pollution and waste management
development
GRI 204：Procurement Practices2016
GRI 205：Anti-corruption2016 306-4 Waste diverted from disposal Pollution and waste management
Communication and training about anti-corruption
policies and procedures
GRI 206： Anti-competitive Behavior2016 GRI 308：Supplier Environmental Assessment2016
Legal actions for anti-competitive behavior, anti-trust, and New suppliers that were screened using environmental
monopoly practices criteria
GRI 207：Tax2019 Negative environmental impacts in the supply chain and
actions taken
GRI 401：Employment2016
Stakeholder engagement and management of concerns
related to tax
Guangdong TCL Smart Home Appliances Co.,Ltd. Environmental, Social and Governance Report 2025 Appendix
Disclosure Chapter Disclosure Chapter
Benefits provided to full-time employees that are not GRI 408：Child Labor2016
provided to temporary or part-time employees
Operations and suppliers at significant risk for incidents of Supply chain management、Employee rights
GRI 402 Labor/Management Relations2016 GRI 409：Forced or Compulsory Labor2016
Operations and suppliers at significant risk for incidents of Supply chain management、Employee rights
forced or compulsory labor and protection
GRI 403：Occupational Health and Safety2018 GRI 410：Security Practices2016
procedures
Hazard identification, risk assessment, and incident
investigation
Incidents of violations involving rights of indigenous
peoples
Worker participation, consultation, and communication on GRI 413：Local Communities2016
occupational health and safety
Operations with local community engagement, impact
Operations with significant actual and potential negative
impacts on local communities
Prevention and mitigation of occupational health and GRI 414：Supplier Social Assessment2016
safety impacts directly linked by business relationships
Workers covered by an occupational health and safety
management system
Negative social impacts in the supply chain and actions
taken
GRI 415：Public Policy2016
GRI 404： Training and Education2016
GRI 416：Customer Health and Safety2016
Assessment of the health and safety impacts of product
and service categories
Programs for upgrading employee skills and transition
assistance programs Incidents of non-compliance concerning the health and
safety impacts of products and services
Percentage of employees receiving regular performance
and career development reviews GRI 417：Marketing and Labeling2016
GRI 405：Diversity and Equal Opportunity2016 Requirements for product and service information and
labeling
Corporate governance，Employee rights and
protection Incidents of non-compliance concerning product and
service information and labeling
Incidents of non-compliance concerning marketing
GRI 406：Non-discrimination2016 communications
Substantiated complaints concerning breaches of
GRI 407：Freedom of Association and Collective Bargaining2016 418-1 Data security and privacy protection
customer privacy and losses of customer data
Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk
Guangdong TCL Smart Home Appliances Co.,Ltd.
Stock Code：002668
Website：https://www.tclsmarthome.com/
Address：2nd Floor, No. 59, Middle Nantou Avenue, Nantou Town,
Zhongshan City, Guangdong Province, China
Hefei Home Appliances：0551-62558000
Homa Appliances：400-700-1770
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