CONTENTS
Deepening Environmental Innovation Leading the Nurturing a People-Centered Deepening Governance
About the Report 01
Governance and Advancing Future, with Quality as the Culture and Fulfilling Social Effectiveness and Reinforcing
Circular Development Foundation Responsibility the Compliance Baseline
Chairman’s Statement 03
Environmental Compliance Management 17 Product and Service Safety and Quality 35 Employees 53 Corporate Governance 65
About Us 05
Innovation 41 Occupational Health and 59 Risk and Compliance Management 69
Climate Response 19
Safety
Sustainability Governance 10 Data Security and Customer 47 Anti-Commercial Bribery and Anti- 71
Energy Utilization 25 Privacy Corruption
Social Contributions and 64
Supply Chain Security and Sustainable 49 Rural Revitalization Fair Competition 72
Materiality Assessment 12 Water Resources Utilization 27
Management
Pollutant Discharge 28
Waste Disposal 29
ESG Data Tables and Notes 73
Circular Economy 31
Cross-reference Index 79 Raw Materials and Packaging Materials 32
Management
Assurance Statement 81 Ecosystem and Biodiversity Protection 34
JIANAN ELEC 2025 Sustainability Report About the Report
About the Report
This report is the first sustainability report publicly released by Ningbo Jianan Electronics Co., Ltd. (hereinafter referred Preparation Principles
to as “JIANAN ELEC” or the “Company”). It aims to disclose the Company’s environmental, social, and governance (“ESG”)
investments and results for 2025 in a transparent and open manner, responding to the concerns and expectations of Materiality Accuracy
stakeholders regarding the Company’s sustainable development management.
The Company identifies material topics relevant to This report seeks to ensure the accuracy of information
its operations that are of concern to stakeholders, to the greatest extent possible and has been assured
Reporting Scope which form the focus of this report. While reporting by a third party. The calculation of quantitative data
on these material topics, the report also considers includes explanations of the data standards, calculation
This report follows the Company’s fiscal year as the reporting period (Stock Code: 300880.SZ), covering the period from
the characteristics of the industry and the Company’s basis, and assumption conditions to ensure that any
January 1, 2025, to December 31, 2025 (hereinafter referred to as the “reporting period”). Some content is appropriately
business. The process and results of the materiality margin of error does not mislead the users. Quantitative
extended to include information from the preceding and subsequent years.
analysis are detailed in the “Materiality Assessment” data and notes are detailed in the “ESG Data Tables and
The scope of the report covers Ningbo Jianan Electronics Co., Ltd. and its subsidiaries. Unless otherwise specified, the section of this report. Notes” section of the report.
scope is consistent with the Company’s consolidated financial statements for the same period. The full names and
abbreviations of the companies included within the scope of this report are listed in the table below.
Balance Clarity
Full Company Names and Abbreviations This report reflects objective facts, and both positive This report is published in both Simplified Chinese and
Abbreviation Full Company Name Abbreviation Full Company Name and negative information involving the Company is English. It also includes tables and diagrams to help
disclosed impartially. No negative incidents that should stakeholders better understand the content.To facilitate
JIANAN ELEC or the Ningbo Jianan Electronics Co., Ltd. and its Yaochuang Cixi Yaochuang Electronic Technology Co., have been disclosed were omitted during the reporting quicker access to information by stakeholders, the
Company subsidiaries Electronic Ltd. period. report provides a table of contents and an indicator
Ningbo Zhongrui Electric Power Technology index aligned with ESG standards.
Ningbo Zhongrui Jiachen New Energy Zhejiang Jiachen New Energy Co., Ltd.
Co. Ltd.
Quantitative Comparability
Jiachen Smart Zhejiang Jiachen Zhidian Technology Jiachuang Zhejiang Jiachuang Self Owned Fund
Electric Co.Ltd. Investment Investment Co. Ltd This report discloses key quantitative metrics, which The Company maintains consistency in the statistical
Jianeng Zhejiang Jianeng International Power Co., Ningbo Jianan Electronics Co., Ltd.
are detailed in the “ESG Data Tables and Notes” section. and disclosure methodology for the same quantitative
Hangzhou Branch
International Ltd. Hangzhou Branch metrics across different reporting periods. Where there
Completeness are changes to the data collection, measurement or
Ningbo Jianan Electronics Co., Limited, a wholly-owned subsidiary of Ningbo Jianan Electronics Co., Ltd.,
JIANAN Hong Kong calculation methods, the relevant data are retrospectively
registered in Hong Kong
The scope of entities covered by this report is consistent adjusted, and the adjustments and the reasons for
Ruishi Jiachuang Jiaxing Ruishi Jiachuang Equity Investment Gansu Ruida Gansu Ruida Electrical Technology Co., Ltd. with that of the Company’s consolidated financial them are explained in the notes to the report, so as to
statements. enable stakeholders to conduct meaningful analysis
and assess trends in the Company’s ESG performance.
Basis for Preparation
Timeliness
This report is prepared based on the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock
Exchange—Sustainability Report (For Trial Implementation) (hereinafter referred to as the “Guidelines”), with reference Verifiability
This is an annual report covering the period from
to the Self-Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange—Guidelines for the January 1, 2025, to December 31, 2025. The Company
Preparation of Sustainability Reports. The cases and data in this report are derived from the
publishes the report within four months after the end
Company’s original operational records or financial
of each fiscal year to provide stakeholders with timely
Source of Data reports. The Company uses the HiESG Environmental,
information for decision-making.
Social and Governance Performance Management
The data and cases in this report are derived from the Company’s official operational records. Financial data are System to manage ESG data. The sources of the
denominated in RMB. In case of any discrepancy with the Company’s annual financial report, the annual financial report disclosed data and the calculation process are fully
shall prevail. traceable and can support third-party assurance.
Contact Information
Publication and Availability
Address: 315 Kaiyuan Road, Cixi City, Zhejiang Province Postcode: 315336
This report is available in both Simplified Chinese and English. In case of any discrepancies between the two versions,
Tel: 0574-63080571 Fax: 0574-63080569
the Chinese version shall prevail. The electronic version of this report can be accessed and downloaded from the
Email: ir@nbjnzn.com
designated information disclosure platform of the Shenzhen Stock Exchange or the Company’s official website (www.
nbjianan.com).
JIANAN ELEC 2025 Sustainability Report Chairman’s Statement
Chairman’s Statement
As the 14th Five-Year Plan came to a successful close, 2025 saw JIANAN ELEC move ahead with a sharper focus loop management approach has helped us ensure product and service safety and quality. We also maintain
on intelligent development and innovation, opening a new chapter in high-quality development. Throughout the rigorous information security controls, strengthen customer privacy protection, and support the safe and stable
year, we remained steadfast in bringing our vision of “Make Energy Visible” to life. By staying deeply committed operation of the power grid. Building on our strengths as a core supplier in smart metering and electricity usage
to the intelligent metering industry, we used digital and intelligent technologies to turn energy from an abstract data collection, we further advance sustainable supply chain development, bring the value chain more closely
concept into a source of value that can be perceived, analysed and optimised. We also extended our metering together, and support the upgrading of the intelligent metering industry.
capabilities from individual devices to the wider energy ecosystem across a full range of application scenarios,
delivering a step-change in intelligent manufacturing under the momentum of new quality productive forces and
Valuing talent and creating shared prosperity through responsible action. We strengthen our talent development
adding another strong chapter to our sustainability story.
system, uphold fair and compliant employment practices, fully safeguard employees’ lawful rights and interests,
and reinforce protections for occupational health and safety. Supported by a training system tailored to different
Building a stronger ESG foundation for steady, long-term progress. Supported by an ESG governance structure employee groups and levels, we have systematically enhanced the professional expertise and overall capabilities
with clearly defined authorities and responsibilities and efficient operation, we have embedded the sustainability of our workforce. Guided by a strong sense of corporate social responsibility, we also actively carry out public
philosophy deeply in our corporate vision and operating principles. We put in place and continue to refine our welfare initiatives, support vulnerable groups, and contribute to rural revitalization through practical action,
ESG management measures to address risks and seize opportunities, while working with stakeholders in a spirit thereby playing our part in promoting social harmony and development.
of harmony, mutual benefit and shared progress towards a sustainable future.
Building trust on strong foundations and operating with integrity and compliance. Guided by our business
Bringing together green energy and intelligent solutions to enable circular and symbiotic development. As a philosophy of “integrity first”, we adhere to compliance standards, carry out regular risk management, and
steadfast implementer of China’s dual carbon strategy (carbon peaking and carbon neutrality), we actively pursue improve our disclosure mechanisms, so as to safeguard shareholders’ rights and interests through sound
energy-saving and carbon-reduction initiatives. Through our Energy & Carbon Platform and our Energy Platform, governance and transparent operations. Committed to “fair competition based on effective competition and
we use real-time energy data to pinpoint potential energy issues, optimise the energy mix more scientifically, mutual benefit”, we maintain “zero tolerance” towards bribery and corruption. By enhancing institutional norms,
and support the transition to green and low-carbon operations through digital tools. We also put the principle of conducting promotional and educational campaigns, and strengthening internal supervision and control, we
circular economy into practice by continuously advancing standardised waste treatment and resource recovery, are working to build a clean and upright JIANAN ELEC and to help foster a well-regulated, orderly and healthy
while exploring green packaging solutions that reduce material use, support reuse and improve recyclability, so market environment.
that our environmentally friendly operations can help safeguard ecological sustainability.
Using ESG as our compass and embarking on a new journey in the “15th Five-Year Plan” period. In 2026, the
Company will stay focused on strengthening fundamentals, advancing technology, expanding application
Innovating for better products and enhancing quality for a stronger value chain. Guided by a “Technology- scenarios and driving transformation. We will accelerate our transition into a comprehensive energy solutions
led, Service-oriented” business approach and by our belief that “quality is the foundation and a driver of service provider, with a strategic focus on the new power system ecosystem spanning solar power generation,
value creation”, we remain committed to innovation and to deepening intelligent manufacturing. Our closed- energy storage, charging and distribution. We will also embed our ESG governance system throughout the entire
business chain and continue to share green and intelligent JIANAN solutions with the world.
JIANAN ELEC 2025 Sustainability Report About Us
About Us
Company Profile Organizational Structure
Ningbo Jianan Electronics Co., Ltd. (Stock Code: 300880.SZ), founded in 1999, is a high-tech enterprise, and also a “Little
Giant” enterprise recognized by the Ministry of Industry and Information Technology of the People's Republic of China,
which specializes in the R&D, manufacturing, and sales of smart metering and systems, power distribution equipments
and components, and new energy equipment and system integration. Strategy and Investment
Committee
As a high-quality long-term partner in power grid operations, the Company is committed to building a global technology
innovation center for low-carbon, zero-carbon and negative-carbon energy solutions, and strives to become a Shareholders’ Meeting
customer-trusted, sustainable, and globally-oriented public technology company.
Nomination Committee
Business Portfolio
Board of Directors
Board of Directors
Office
During the reporting period, the Company was primarily engaged in the R&D, manufacturing, and sales of smart
metering and systems, power distribution equipments and components, and new energy equipment and system Remuneration and
Appraisal Committee
integration, with its products being widely used in the power industry.
Securities Investment General Manager
Department
All software and hardware products related to the measurement,
Audit Committee Audit Department
collection, billing, and charging of electrical energy, including smart
electricity meters, power consumption data collection terminals,
IoT modules, collection system and billing-system software, and
operation and maintenance services.
Research and Production Management
Marketing Center
Smart metering Development Centre Centre Center
and systems
Protective enclosures Hardware products for
(housings) and new energy equipment
components for products and the system
and equipment related integration business
to electricity metering centered around these
Quality Management Department
Development Planning Department
Finance Department
Department
Research and Development Management
Sales Management Department
International Business Department
Technical Services Department
Product Development Department
Systems Software Department
Intelligent Equipment Department
Planning Department
Technical Department
Manufacturing Department
Information Management Department
Purchasing Department
Administration Department
Human Resources Department
and control. This equipment, including
includes metering charging equipment,
boxes (high/medium/ ene rg y s t o r a g e
low voltage), meter equipment, and system
housings and terminal Power distribution
equipments and integration projects.
enclosures, as well as
components
internal components
(such as terminals, New energy equipment and
switches, locks, etc.). system integration
JIANAN ELEC 2025 Sustainability Report About Us
Corporate Culture
Values
Unity of knowledge and action
Mission
Paving the way of energy measurement, exploiting the diversification of energy
Vision
Make Energy Visible
Spirit
Be responsible, Be accountable, Make achievements, Be dedicated
Philosophy
Create value for shareholders and opportunities for employees
JIANAN ELEC 2025 Sustainability Report Sustainability Governance
Honours in 2025 Sustainability Governance
Approved in the 2025 Review for 'Little National Green Factory Sustainability Philosophy
Giant' Status
Ministry of Industry and Information
Ministry of Industry and Information Technology of
Technology of the People's Republic of China
the People’s Republic of China
JIANAN ELEC regards “through technology and quality, we create opportunities for customers, employees, shareholders
and society to realise aspirations” as the core of its corporate philosophy. The Company is committed to promoting
the coordinated development of its business alongside the economy, the environment and society, working with
stakeholders for mutual benefit and shared progress, and pursuing a sound and sustainable path of development
through a strong sense of responsibility.
Zhejiang Advanced Smart Factory
(JIANAN ELEC Smart Electricity Zhejiang Industrial Design Center
Meter and Collection System Smart
Department of Economy and Information Sustainability Philosophy of JIANAN ELEC
Factory)
Technology of Zhejiang Province
Department of Economy and Information
Technology of Zhejiang Province
National High-tech Enterprise
“Zhejiang Excellent Industrial Product” With responsibility, we
(Jiachen New Energy, a controlled
(Precision Instrument Group: High- protect environmental
subsidiary)
Protection Smart Electricity Meter ) resources
Office of the National Leading Group for
Department of Economy and Information the Administration of High-tech Enterprise
Technology of Zhejiang Province Accreditation
Cixi Top 20 Industrial Enterprises 2024 Cixi Zero-Carbon (Near-Zero- With integrity, With gratitude,
Carbon) Factory 2025 we honour our we honour our
CPC Cixi Municipal Committee and Cixi Municipal Cixi Municipal Economic and Information responsibilities to commitments to
People’s Government Technology Bureau investors Through technology and customers
quality, we create opportunities
for customers, employees,
shareholders and society to
realise aspirations
Cixi Top 100 Taxpayers 2024
CPC Cixi Municipal Committee and Cixi
Municipal People’s Government
With compassion,
we give back to With care, we
society through support our
charitable initiatives employees
JIANAN ELEC 2025 Sustainability Report Materiality Assessment
Sustainability Governance Structure
Materiality Assessment
The Company has established and continuously improved a sustainability governance structure with clearly defined
authorities and responsibilities and efficient operation. By defining the respective roles of the decision-making,
management and execution levels, it integrates ESG philosophy throughout both its strategic development and day-
to-day operations, thereby strengthening the foundation for sustainability governance. As of the end of the reporting
period, the Company had obtained certification under the GB/T 39604-2020 Social responsibility management systems
Double Materiality Analysis Process
standard.
The identification of topics from the perspectives of financial materiality and impact materiality (collectively, “double
materiality”) is a core part of the Company’s sustainability management. In 2025, in accordance with the requirements
for materiality analysis set out in the Shenzhen Stock Exchange’s Guidelines, the Company carried out the identification,
assessment, prioritisation and reporting of material topics.
Sustainability Governance Structure of JIANAN ELEC
Double Materiality Analysis Process of JIANAN ELEC
As the highest decision-making body for ESG-related affairs, the Board of
Directors is responsible for reviewing ESG strategic objectives, approving
Decision-making annual work plans, supervising the progress of major ESG topics, and
Level reviewing ESG reports. It provides overall leadership for ESG work and
Board of Directors Understand the Company’s
bears ultimate responsibility for overall ESG performance.
Sustainability Context
· Interpret external environmental factors such as national macro policies, industry development trends and
relevant topical issues.
Senior Management is responsible for the overall planning and
coordination of ESG-related matters, organising the formulation and · Identify the key stakeholders affected, taking into account the Company’s business model and value chain
Management implementation of ESG management objectives, regularly reporting structure.
Level Senior progress to the Board of Directors, and promoting the deep integration of
Management ESG philosophy with business operations.
Establish a List of Topics and Identify Sustainability-related
Impacts, Risks and Opportunities
· Identify and select sustainability topics relevant to the Company through standards benchmarking, business
As the main bodies responsible for implementation, they carry out ESG model analysis, policy analysis and peer benchmarking, and analyse the actual and potential impacts, risks
management requirements in line with their respective responsibilities,
Execution Level and opportunities associated with those topics.
Functional incorporate ESG indicators into daily operations and performance
Department and appraisals, and ensure the effective delivery of ESG strategic objectives.
Business Units
Assess the Double Materiality of Topics
· Through ongoing communication with stakeholders as well as internal and external experts, assess the
degree of materiality of each topic’s impacts based on the principle of double materiality, and compile a list
of material topics.
Report and Manage Topics
GB/T 39604-2020
Social Responsibility Management System Certificate · Following review and confirmation by the Board of Directors of the Company, the Company gives focused
disclosure to, and carries out targeted management of, the topics assessed as highly material in 2025.
JIANAN ELEC 2025 Sustainability Report Materiality Assessment
Stakeholder Engagement and Due Diligence
The Company identifies its key stakeholders and has established a regular communication mechanism.
Through regular and ad hoc engagement, it seeks to gain an in-depth understanding of stakeholders’ concerns
and actively responds to their needs and expectations, thereby continuously enhancing its ESG management
performance.
Key Stakeholders Topics of Concern Response Channels Key Stakeholders Topics of Concern Response Channels
· Employee meetings
· Corporate Governance
· Shareholders’ Meeting · Training activities
· Risk and Compliance Management · Employees
· Annual reports · Satisfaction surveys
· Anti-Commercial Bribery and Anti- · Occupational Health and Safety
Corruption
· ESG reports · Employee Representative Congress
Shareholders and investors Employees
· Investor briefings and roadshows · Daily face-to-face communication
· Climate Response
· Supply Chain Security and · Supplier conferences
· Environmental Compliance Sustainable Management
· Contractual requirements
Management · Fair Competition
· Special reports · Capacity-building training
· Pollutant Discharge · Anti-Commercial Bribery and Anti-
· Regular data reporting Suppliers and partners · Day-to-day communication
· Waste Disposal Corruption
· Thematic communication meetings
· Water Resources Utilization
· Policy implementation
Government and regulatory · Energy Utilization
authorities · Volunteer activities
· Fair Competition
· Public welfare and charity · Energy Utilization
· Social Contributions and Rural
· Pollutant Discharge
Revitalization
· Waste Disposal · Community forums
· Circular Economy · ESG reports
· Raw Materials and Packaging · Information disclosure on the official
Materials Management website
· Product and Service Safety and · Customer satisfaction surveys Communities and the public · Ecosystem and Biodiversity · Volunteer activities
Quality · Product descriptions Protection · Public welfare and charity
· Data Security and Customer Privacy · Official website and social media · Rural Revitalization
Customers · Innovation · On-site communication · Social Contributions
To strengthen the identification, assessment, and impacts, risks, and opportunities management in daily
operations, the Company coordinates relevant departments to carry out due diligence through interviews,
discussions and other means. By listening to stakeholders’ feedback, opinions and recommendations, it
enhances the identification and management of material topics, establishes response and management
procedures for ESG-related adverse impacts or risks, and continuously refines and improves its management
and practices to support the Company’s steady operations.
JIANAN ELEC 2025 Sustainability Report Materiality Assessment
Conclusions of Materiality Analysis Type of Materiality Topic
In 2025, based on standards benchmarking, policy analysis and industry benchmarking, JIANAN ELEC identified and · Supply Chain Security and Sustainable Management
screened a total of 22 highly relevant topics, comprising 9 environmental topics, 7 social topics and 6 sustainability- Topics with only financial materiality · Corporate Governance
related governance topics. · Risk and Compliance Management
List of Topics of JIANAN ELEC for 2025
· Data Security and Customer Privacy
· Energy Utilization
· Pollutant Discharge
Environmental Social Sustainability-related · Waste Disposal
Governance
· Raw Materials and Packaging Materials Management
· Environmental Compliance Management
· Environmental Compliance Management · Social Contributions and Rural · Due Diligence Topics with only impact materiality · Stakeholder Engagement
· ClimateResponse Revitalization · Stakeholder Engagement · Water Resources Utilization
· Energy Utilization · Innovation · Anti-Commercial Bribery and Anti- · Circular Economy
· Water Resources Utilization · Product and Service Safety and Corruption · Anti-Commercial Bribery and Anti-Corruption
Quality · Fair Competition · Fair Competition
· Pollutant Discharge
· Data Security and Customer Privacy · Corporate Governance · Due Diligence
· Waste Disposal
· Supply Chain Security and Sustainable · Risk and Compliance Management · Social Contributions and Rural Revitalization
· Circular Economy Management
· Raw Materials and Packaging Materials · Employees
Management
· Occupational Health and Safety
· Ecosystem and Biodiversity Protection
Topics with neither financial materiality nor impact
materiality
· Ecosystem and Biodiversity Protection
The Board of Directors of the Company reviewed and confirmed the list of topics by materiality for the year. At the
same time, the Company conducted an in-depth analysis and assessment of the risks and opportunities related to ESG
topics, with targeted management measures put in place for topics considered of financial materiality. In this report, the
Following analysis and assessment by internal and external experts, of the 22 topics identified and screened by the
Company provides focused disclosures under the four pillars of Governance, Strategy, Impacts, Risks, and Opportunities
Company, 5 were found to be of double materiality, 3 were of financial materiality only, 13 were of impact materiality
Management, and Metrics and Targets, demonstrating its ability to manage ESG-related risks and opportunities and
only, and 1was of neither financial materiality nor impact materiality.
laying a solid foundation for sustainable development.
JIANAN ELEC’s List of Topics by Materiality for 2025
Type of Materiality Topic
· Product and Service Safety and Quality
· Climate Response
Topics with both financial materiality and impact
materiality
· Innovation
· Employees
· Occupational Health and Safety
JIANAN ELEC 2025 Sustainability Report Deepening Environmental Governance and Advancing Circular Development
Deepening Environmental Governance
and Advancing Circular Development
Environmental Impact Analysis of JIANAN ELEC
Closely aligned with China’s strategic agenda for ecological civilisation, JIANAN ELEC has made green and low-carbon
development a core priority in its pursuit of high-quality growth and embedded it throughout the full lifecycle of its Value Chain
Environmental Inputs Environmental Outputs
production and operations. Grounded in its environmental management system, the Company has taken a coordinated Process
approach in three key areas: effective carbon emissions control, efficient resource utilization and waste reduction.
Through practical measures such as expanding into photovoltaic power generation, promoting water recycling and
Air emissions: Soldering emissions and coating emissions
optimising green packaging, it has continued to strengthen the foundations of its environmental governance and
Energy: Purchased electricity Noise: Noise generated by the operation of equipment such as air
enhance its green development performance. compressors, chillers, fans, and water pumps
Raw materials: Electronic
Production components, metal housings, Non-hazardous waste: Waste iron, waste aluminium, plastic
plastic housings, conformal packaging boxes for auxiliary materials, etc.
Environmental Compliance Management coating, thinner, flux and other Hazardous waste: Waste activated carbon, waste scrubbing liquid,
materials waste cloths, empty waste raw material barrels, waste filter cotton,
waste solder dross, waste batteries, lamps, ink cartridges, etc.
JIANAN ELEC strictly complies with the Environmental Protection Law of the People’s Republic of China, the Law
of the People’s Republic of China on Environmental Impact Assessment, and other applicable laws, regulations and
policy requirements. On this basis, the Company has established a series of environmental management systems, Energy: Petrol consumed by
including the Environmental Information Disclosure System, the Waste management System, the Energy and Resource Logistics transport vehicles Non-hazardous waste: Packaging cardboard, etc.
Management System,the Noise Management System, and the Greenhouse Gas Emissions Information Management Packaging materials
System. Environmental management is overseen by a Deputy General Manager, while the Administration and Human
Resources Department is responsible for implementation across all related aspects of environmental work. As of the Energy: Natural gas used in Air emissions: Cooking fume emissions from the canteen
end of the reporting period, the Company and its subsidiary Jiachen New Energy had obtained certification to GB/T the canteen and petrol used by Wastewater: Oily wastewater from the canteen and domestic
Water resources: Domestic Non-hazardous waste: Municipal solid waste and food waste from
water and canteen water the canteen
In 2025, the Company continued to strengthen its environmental management system by carrying out environmental
risk assessments and promoting environmental compliance. It also refined its emergency response plans for
environmental incidents, enabling the effective identification and control of environmental risks.
JIANAN ELEC’s Major Actions and Achievements in
Environmental Compliance Management in 2025
Organised special training sessions on environmental protection to systematically explain
environmental regulations and the Company’s systems, enhancing employees’ environmental
awareness and professional capabilities.
Awareness Incorporated environmental briefings into pre-shift meetings for production teams, embedding
raising environmental thinking into routine operations and encouraging frontline employees to put it into
practice.
Used electronic display screens to show environmental knowledge on a rolling basis, fostering a
culture in which everyone pays attention to environmental protection and puts it into practice in
every aspect of work.
GB/T 24001-2016/ISO 14001:2015 GB/T 24001-2016/ISO 14001:2015
Conducted regular environmental risk assessments to systematically identify environmental risk
Environmental Management System Environmental Management System Risk management points across all stages of operations and ensure that risks remain preventable and controllable.
Certificate Certificate (Jiachen New Energy) and control
Developed and dynamically updated environmental emergency response plans, and carried out
regular drills to improve the Company’s ability to respond swiftly to and handle environmental
incidents.
As a manufacturing enterprise, the Company’s direct environmental impacts arise mainly from value chain processes
such as production, logistics and office operations. These impacts primarily relate to the consumption of energy and
resources, including petrol, electricity and water, as well as the generation of emissions and waste such as greenhouse In 2025, the Company
gases, air emissions, wastewater, noise and solid waste.
recorded no material environmental achieved 100% coverage of
violations or non-compliance incidents; environmental awareness training.
JIANAN ELEC 2025 Sustainability Report Deepening Environmental Governance and Advancing Circular Development
Climate Response Strategy
The Company integrates climate response into its strategy and operations, systematically identifies climate-related risks
Guided by customer needs and dedicated to continuous innovation, JIANAN ELEC remains committed to its vision of and opportunities, and develops targeted response strategies to support steady and long-term green transformation.
“Make Energy Visible” and its mission of “Paving the way of measurement, exploiting the diversification of energy”. With
green transformation as its goal, the Company has developed a climate change management system with reference to
the recommended framework set out in the IFRS Sustainability Disclosure Standard S2 — Climate-related Disclosures Risks and Opportunities Related to Climate Response and Response Strategies of JIANAN ELEC
(IFRS S2) issued by the International Sustainability Standards Board (“ISSB”). In doing so, the Company seeks to
manage climate-related risks effectively while capturing climate-related opportunities, continuously improve its Time Horizon Financial
Risks and Opportunities Impact Analysis Response Strategies
management and minimise the carbon footprint of its products to the greatest extent possible. of Impacts1 Impact
Physical risks Set a clear target of
Governance carbon peaking by
The likelihood of extreme Extreme weather events 2030 and incorporate
weather events such may threaten the safety emissions
To systematically advance the Company’s climate response management, the Company has established and improved as typhoons, torrential of production bases and reduction targets
Decrease in
a long-term management mechanism through systems such as the Corporate Greenhouse Gas Management System rain, floods, droughts the stability of the supply into departmental
Acute risk Short term operating
and the Greenhouse Gas Emissions Information Management System. Emissions reduction targets have also been and extreme heat chain, leading to production performance
revenue
(heatwaves) may disruptions and delays appraisals to
incorporated into departmental performance appraisals to help ensure the effective delivery of the Company’s increase in the future. in order delivery, thereby ensure effective
energy-saving and emissions-reduction goals. Taking into account its existing organizational structure and business affecting operating revenue. management.
characteristics, the Company has put in place a climate change governance structure with clearly defined authorities Continue to increase
and responsibilities and implementation at every level. Climate change For the Company’s investment in
may lead to sea level manufacturing operations, green technology
rise, rising average this may affect the normal R&D, including the
temperatures and water supply for fire Increase in development of low-
Chronic
greater pressure on protection facilities and Long term operating power products and
risk
Climate Response Governance Structure of JIANAN ELEC water resources. increase the operating load costs full-chain digital
of air-conditioning systems, energy platforms,
thereby raising operating in order to address
costs. climate change
Level Organization Composition and Responsibilities
through technological
Transition risks innovation.
Decision- Serves as the highest decision-making and oversight body, and
Board of Directors Establish a
making Level regularly reviews progress reports.
China’s dual carbon If the Company fails to greenhouse
policies may continue effectively manage its energy gas emissions
Is primarily responsible for approving relevant policies, providing
Management Greenhouse Gas Management to tighten, potentially consumption and emissions accounting and
overall oversight, and coordinating and directing cross-functional
Level Leading Group resulting in increasingly and does not comply with monitoring system
efforts.
stringent policy and legal the latest policy and legal and regularly publish
regulatory requirements requirements, it may face ESG reports to ensure
Promotes the application of energy-saving technologies and is for the Company in increased compliance Increase in compliant operations.
Sales Management Department responsible for the procurement and inspection of energy-use and areas such as carbon costs, penalties for non- compliance Incorporate carbon
metering equipment. Policy and emissions. compliance, or constraints Medium to costs; management
legal risk related to carbon quotas. long term increase requirements into
Administration and Human Implements applicable laws and regulations and participates in the In addition, in order to meet in capital supplier evaluations,
Resources Department formulation of company-level policies. policy and legal requirements, expenditure prioritise products
the Company may need to from suppliers
System and Software Promotes the application of energy-saving technologies and is improve and optimise its with environmental
Department responsible for energy consumption analysis and data consolidation. climate governance structure certifications and
and management measures, products made
Execution Acts as the coordinator for day-to-day implementation, assisting resulting in increased capital from recyclable
Level Greenhouse Gas Administrator departments in carrying out management policies and conducting expenditure. or biodegradable
routine oversight, data collection and implementation checks. materials, develop
Growing market demand If the transformation of alternative supplier
for green and low-carbon traditional business lags resources, diversify
The person with primary responsibility for production in each team geographically
products and services is behind, or the research
serves as the accountable person for greenhouse gas management Decrease in concentrated supply
Technology increasing expectations and development of green Medium to
under the tiered management mechanism. operating chain risks, and
risk for the Company to adopt technologies falls short long term
Production teams As frontline implementation units, production teams are mainly low-carbon technologies. of expectations, product revenue reduce the impact
responsible for following operating procedures, meeting energy- competitiveness may decline, of extreme weather
saving targets, and completing and retaining original consumption and market share may be lost. events in any single
records. region.
JIANAN ELEC 2025 Sustainability Report Deepening Environmental Governance and Advancing Circular Development
Financial
Impacts, Risks, and Opportunities Management
Time Horizon
Risks and Opportunities Impact Analysis Response Strategies
of Impacts1 Impact
The Company has established a full-process climate climate response management mechanism covering identification,
Opportunities assessment, analysis and response. This provides a systematic pathway from establishing a clear emissions baseline
at the source to implementing emissions reduction measures by category, thereby providing solid support for the
The green and low- The Company’s accumulated
carbon transition is expertise in digital energy and achievement of the Company’s carbon peaking target and the enhancement of its green governance capabilities.
creating new market smart grids positions it to Increase in
Market Medium to
segments and business capture growth opportunities operating
opportunity long term
growth opportunities, in new energy and energy- revenue JIANAN ELEC’s Climate Response Management Process
such as digital energy saving markets and create
Leverage
platforms. new growth drivers.
certifications
such as green
Improving the efficiency Through systematic energy manufacturing and
of energy, water and conservation and carbon carbon management Identification Assessment Analysis Response
other key resources can reduction, the Company can systems, together
Short,
Resource deliver cost savings reduce energy consumption Decrease in with the honour of · In accordance with · Taking into account · Based on the likelihood · The Company adopts
medium,
efficiency and efficiency gains and energy costs per unit operating being named a “Cixi the framework the Company’s actual and degree of impacts corresponding
and long
opportunity in operations through of output while improving costs Zero-Carbon (Near- set out in the business development of the identified risks management
term
better management resource utilization efficiency. Zero-Carbon) Factory ISSB’s IFRS S2 and expert opinions, the and opportunities, the measures in relation
and technological 2025”, to enhance Climate-related Company assesses the Company prioritises to the identified risks
application. brand image and Disclosures, and impacts of the identified them. and opportunities,
turn governance with reference to risks and opportunities and continuously
The environmental The Company has the strengths into climate-related on external stakeholders, monitors the
performance of products opportunity to develop growth momentum. policies and other as well as the degree effectiveness of
and services, together differentiated green products relevant factors, of their impacts on the those measures.
Product with the Company’s and services, strengthen Increase in the Company Company’s financial
Medium to identifies climate- position and strategy.
and service ESG performance, is brand appeal and customer operating
long term related risks and
opportunity becoming increasingly loyalty, and thereby open up revenue · The Company also
relevant to brand new revenue streams and opportunities. conducts a comprehensive
image and market increase market share. accounting of greenhouse
competitiveness. gas emissions within
its organizational
The time horizons for risks and opportunities referred to in this report are defined with reference to the Ministry of Finance of the People’s boundary to establish
Republic of China’s Enterprise Sustainability Disclosure Standards — Basic Standards (for Trial Implementation) and the Company’s actual a clear emissions
operating conditions. “Short term” refers to within one year (inclusive) after the end of the reporting period; “medium term” refers to one to baseline and identify
five years (inclusive) after the end of the reporting period; and “long term” refers to more than five years after the end of the reporting period. key sources, providing
These definitions apply throughout the remainder of this report unless otherwise stated. a basis for subsequent
management.
The Company has obtained certifications in green manufacturing management systems, digital and intelligent green and
low-carbon management systems, greenhouse gas emissions management systems and future factory management
systems, providing a solid basis for the effective implementation of its low-carbon initiatives. In addition, the Company was Actively responding to China’s dual carbon strategy and guided by the philosophy of green development, the Company
recognised as a “Cixi Zero-Carbon (Near-Zero-Carbon) Factory 2025”, becoming the first enterprise in Cixi City to receive this has systematically advanced its climate response across three dimensions: technology, operations and management.
honour.
Green Manufacturing System Digital Intelligent Green GHG Certificate of Future Factory Recognised as a “Cixi Zero-
Certificate Low-Carbon Management Registration Management System Carbon (Near-Zero-Carbon)
System Certification Certification Certificate Factory 2025”
JIANAN ELEC 2025 Sustainability Report Deepening Environmental Governance and Advancing Circular Development
JIANAN ELEC’s Major Actions and Achievements Metrics and Targets
in Climate Response in 2025
With the strategic goal of achieving carbon peaking before 2030, the Company continues to strengthen its greenhouse
Green technological upgrades: The Company used low-VOC conformal coating and adopted a lightweight
design for enclosure components. See the section headed “Innovation” for details. gas data management and regularly tracks greenhouse gas emissions indicators in order to monitor and assess the
effectiveness of its climate-related measures and track progress towards its target.
Low-power product development: The Company developed low-power products such as IoT meters,
waterproof meters and anti-tampering prepayment meters, and built a full-chain digital energy platform to
enable real-time monitoring and intelligent analysis of energy consumption data.
Clean energy deployment: A 0.69 MW photovoltaic power station was installed on the roof of the
Technology
Company’s plant, generating approximately 720,000 kWh of electricity annually. This has effectively Scope 1 greenhouse gas emissions Scope 2 greenhouse gas emissions
replaced part of the purchased grid electricity and improved the energy mix. See the section headed “Energy (market-based)
Utilization” for details.
Green packaging: The Company used biodegradable cartons, paper trays and reusable wooden pallets, Indicators and
and promoted packaging reduction and recycling to improve the recovery rate of packaging materials and
Performance Related to
reduce packaging waste, in compliance with RoHS environmental requirements. See the section headed “
Raw Materials and Packaging Materials Management” for details. Greenhouse Gas Emissions
of JIANAN ELEC in 2025
Green warehousing and transportation: The Company optimised transport routes, promoted the use of
Packaging and new energy vehicles for short-distance transportation, and implemented intelligent control of warehouse Total greenhouse gas emissions Greenhouse gas emissions intensity
transportation lighting and air-conditioning, thereby effectively reducing energy consumption in warehousing operations. (Scope 1 + Scope 2) (market-based) (Scope 1 + Scope 2) per unit of revenue
See the section headed “Energy Utilization” for details. (market-based)
Internal audit: The Company carried out regular internal audits to track progress against targets, identify
areas for improvement, and ensure the suitability and effectiveness of the management system.
Supply chain carbon management: Carbon management was extended to suppliers, with priority given
to recyclable and biodegradable materials, thereby promoting greener upstream practices, extending the
boundary of carbon management, and reducing environmental risks in the supply chain. See the section
headed “Supply Chain Security and Sustainable Management” for details.
Management
Energy-saving awareness and training: The Company carried out company-wide energy-saving awareness
initiatives, posted visual reminders and organised training sessions to foster green office habits and create
a culture of saving every kilowatt-hour of electricity and every drop of water. See the section headed “Water
Resources Utilization” for details.
Building a Full-Chain Digital Energy Platform and Launching the “Energy and
Carbon Platform”
The Company has consistently embedded green development into its corporate DNA and has built a full-
chain low-carbon management system through technological innovation. It took the lead in developing
an industrial digital energy platform covering more than 1,000 IoT monitoring points across energy,
environment, fire safety and other areas. The platform enables real-time monitoring of park-wide dynamics
and is integrated with video surveillance and vehicle access control systems, creating an efficient and
coordinated smart management ecosystem.
In 2025, the Company launched the Energy and Carbon Platform, the first of its kind in the industry.
By connecting with the Energy Platform, MES and ERP systems, the platform enables product carbon
accounting based on real-time energy data. This allows the Company to track carbon emissions throughout
the full product lifecycle with precision and provides end-to-end data support for green product development
and low-carbon manufacturing.
Application of the Full-Chain Digital Energy Platform Application of the Energy and Carbon Platform
JIANAN ELEC 2025 Sustainability Report Deepening Environmental Governance and Advancing Circular Development
Energy Utilization JIANAN ELEC’s Major Actions and Achievements in Energy Utilization in 2025
JIANAN ELEC’s energy consumption is mainly electricity, sourced primarily from purchased electricity and its self- Use of renewable energy
built photovoltaic power generation system. In addition, a small amount of petrol is used for official vehicles to support
business travel. · The Company continued to purchase green electricity certificates to support the development of
renewable energy and optimise the energy mix.
· The Company installed photovoltaic power stations on factory rooftops, reducing purchased
The Company complies with the Law of the People’s Republic of China on Energy Conservation and other applicable electricity consumption and carbon emissions effectively.
laws, regulations and policy requirements. In accordance with the Energy Management Systems—Requirements
with Guidance for Use (GB/T 23331-2020/ISO 50001:2018) and the Energy Management Systems—Certification Electricity consumption control
Requirements for Machinery Enterprise (RB/T 119-2015), it has formulated internal documents such as the Energy
Management Manual to standardise energy utilization and management in a systematic manner. Each year, the · The Company fully adopted LED lighting and implemented zone-based control, with lights
Administration and Human Resources Department compiles and analyses electricity consumption data, continuously in unoccupied areas switched off automatically, effectively reducing lighting-related energy
consumption.
identifies opportunities for energy savings, and improves energy efficiency. As of the end of the reporting period, the
Company and its subsidiary Jiachen New Energy had obtained certification to GB/T 23331-2020/ISO 50001:2018 · Air-conditioning operations were flexibly regulated based on overtime staffing levels and weather
conditions to avoid energy waste.
Energy management systems.
· A “lights off when leaving” policy was implemented to eliminate unnecessary lighting and foster
energy-saving habits among employees.
Energy-saving awareness promotion
· Prominent energy-saving signs were posted in office areas to foster a culture of energy
conservation and consumption reduction.
· The Company regularly shared energy-saving knowledge and promotional images through online
platforms to continuously raise employees’ environmental awareness.
Digital energy management
GB/T 23331-2020/ISO · The Company independently developed an energy management platform to achieve real-time
GB/T 23331-2020/ISO
Energy Management System · The Company used the platform to publish departmental energy consumption targets and
Energy Management System
Certificate (Jiachen New Energy) indicators, promoting accountability for energy conservation at every level.
Certificate
· The Company conducted an annual statistical analysis of electricity consumption data and put
forward targeted optimisation recommendations, providing sound support for continuous energy-
saving efforts.
Building a Green Electricity Supply System
The Company invested over 3 million RMB to construct an approximately 10,000-square-meter rooftop
distributed photovoltaic power generation project, with a total installed capacity of 0.69 MWp, utilizing
through a cooperation agreement, and the green electricity was fully absorbed. In 2025, the power
generation reached 720,000 kWh. In addition, the Company purchased 2,463 MWh of green electricity
certificates, significantly increasing the proportion of renewable energy. Furthermore, through its
industrial digital energy platform, the Company monitors energy consumption data in real time and
optimizes energy dispatch, achieving a notable reduction in energy consumption per unit of output value.
Rooftop Photovoltaic Power Station at JIANAN
ELEC’s Plant Green Electricity Certificate Transaction Vouchers
JIANAN ELEC 2025 Sustainability Report Deepening Environmental Governance and Advancing Circular Development
Water Resources Utilization Pollutant Discharge
JIANAN ELEC’s water resources utilization is concentrated mainly in office operations, including water for daily office The main pollutants generated at the Company’s plant fall into three categories: air emissions, wastewater and noise.
use and for the canteen. The Company’s water supply is sourced primarily from the municipal water supply network, Air emissions arise from production processes such as soldering and coating, as well as cooking fumes from the
and its water withdrawal has no material impact on the local ecological environment. canteen; wastewater comes mainly from domestic sewage and canteen discharge; and noise is generated by the
operation of equipment such as air compressors, chillers, fans and water pumps.
The Company strictly complies with the Water Law of the People’s Republic of China and other applicable laws,
regulations and policy requirements relating to water resources management in the places where it operates. It has The Company strictly complies with the Law of the People’s Republic of China on the Prevention and Control of
formulated the Implementation Plan for Water Conservation, under which the Administration and Human Resources Atmospheric Pollution, the Water Pollution Prevention and Control Law of the People's Republic of China and
Department is responsible for compiling and analysing water inflow and outflow data at least once a year. If any other applicable laws, regulations and policy requirements. In accordance with standards such as the Integrated
abnormalities are identified, the Company promptly inspects the water system and investigates potential leaks to Emission Standard of Air Pollutants (GB 16297-1996), it has established corresponding pollution prevention and
ensure safe and controlled water use. control management systems. Overall administrative management is overseen by a Deputy General Manager, who
is specifically responsible for the day-to-day compliance management of pollutant discharge, supervision over
JIANAN ELEC’s Major Actions and Achievements in Water Resources Utilization in 2025 the operation of environmental protection facilities, and liaison with regulatory authorities. The Company adopts
differentiated treatment measures and discharge methods based on the characteristics of different pollutants to ensure
stable compliance with applicable discharge standards.
Pollutant Treatment and Discharge Methods
Water · Permanent “Save Energy and Water” signs were posted at prominent positions in of JIANAN ELEC in 2025
conservation
public areas to foster a positive culture of company-wide participation in water
awareness
promotion conservation.
Pollutant
Source Treatment and Discharge Methods
Category
· Collected and treated through a flame-retardant filter
· Most water dispensers, squat toilets and taps in workshops and offices have been screen and activated carbon adsorption system, then
Soldering fumes
replaced with water-saving fixtures, with estimated water savings of 20% to 50%. discharged in compliance with applicable standards
Technological
through a tall exhaust stack.
transformation · The Company proactively procured variable-frequency centrifugal chillers, which
feature an optimized supporting cooling system that helps reduce cooling water
makeup. · Collected and consolidated, then treated through a
water scrubbing, filter cotton dehumidification and
Air emissions Coating emissions activated carbon adsorption system, and discharged
in compliance with applicable standards through a
tall exhaust stack.
· Rainwater collection tanks and pipelines were used to collect rooftop rainwater
Recycled and · Collected and treated through a fume purification
reused for watering plants, cleaning vehicles and floor cleaning, thereby improving the Cooking fumes from the canteen unit, then discharged through an exhaust stack
efficiency of unconventional water resources utilization. extending above roof level.
· Pre-treated in a grease trap and then treated
together with domestic sewage in a septic tank
Oily wastewater from the canteen
before being discharged into the municipal sewer
network.
Wastewater
Domestic sewage
· Treated in a septic tank before being discharged into
the municipal sewer network.
· Selected low-noise equipment;
Noise from equipment operation · reasonably arranged operating hours; and
Noise · strengthened routine maintenance of equipment.
In 2025, the Company
recorded no non-compliant air emissions, wastewater discharge or noise emissions incidents.
JIANAN ELEC 2025 Sustainability Report Deepening Environmental Governance and Advancing Circular Development
Waste Disposal Types and Disposal Methods of Solid Waste of JIANAN ELEC in 2025
In its day-to-day office operations, JIANAN ELEC generates non-hazardous waste such as paper, plastics and office
consumables, as well as hazardous waste such as waste batteries, waste lamps and waste ink cartridges. In the Waste Type Solid Waste Disposal Methods
production process, the Company also generates general industrial solid waste such as waste tape materials from
the SMT process, waste metal shavings and solder dross, as well as hazardous waste such as waste chemical raw Waste iron, waste aluminium, waste copper,
Recyclable, entrusted to qualified institutions for recycling
materials and air containers generated in production. Metal waste taps, steel rulers, iron clips, and waste metal
and reuse
parts from equipment maintenance
In accordance with the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution Waste tape materials from the SMT process Industrial waste, transferred by a third party
by Solid Wastes and other applicable laws, regulations and policy requirements, the Company has established the
Waste Management System to systematically define waste management responsibilities across departments and Waste plastics
Plastic packaging boxes for auxiliary materials, Recyclable, entrusted to qualified institutions for recycling
comprehensively promote waste reduction, resource recovery and harmless treatment. In 2025, the Company recorded plastic sign plates, plastic caps, etc. and reuse
no incidents of non-compliant waste disposal.
Waste cardboard Packaging cardboard, etc. Recyclable
Responsible Departments and Duties for Waste Management at JIANAN ELEC General Adhesive tape, towels, rubber tape, paper
Collected by category and disposed of by qualified third
industrial solid scraps, sweeping waste, plant leaves, mops,
parties in compliance with regulations
waste brooms, etc.
· Systematically reviews the various types of waste generated in the course of the Company’s Waste empty containers of chemical raw materials
operations, updates the waste list, and defines classification standards and labelling Entrusted to qualified institutions for recycling and reuse
used in production
requirements.
· Appoints a waste coordinator responsible for the day-to-day management of cleaning staff, Waste batteries, lamps, etc. Regular storage
ensuring that waste is properly collected on site, transferred by category and stored safely. Hazardous waste
Administration and
Human Resources · Identifies and reviews qualified waste disposal service providers, signs recycling and disposal
contracts, specifies environmental protection requirements, and properly retains hazardous waste Ink cartridges, etc. Recycled by suppliers
Department
transfer manifests.
· Conducts regular reviews of waste disposal and compiles disposal data for different types of Photocopier photoconductor drums, toner, etc. Disposed of by maintenance service providers
waste.
Solder dross Recycled and reused
Other
Electronic components Recycled by suppliers
· Is responsible for source classification and on-site temporary storage of waste generated during
the production process, ensuring that all types of waste are placed in designated containers or
areas in accordance with relevant requirements.
Production
· Assists the Administration and Human Resources Department in recording waste data arising
Center from the production process.
· Is responsible for accounting for proceeds generated from the sale and disposal of waste,
ensuring that the economic benefits of resource recovery are accurately reflected.
Finance
Department
For the recycling and disposal process, the Company has established a full-process waste sorting and disposal
mechanism and implements refined classification and closed-loop management for solid waste. Hazardous solid
waste is entrusted to qualified third parties for centralised harmless treatment. At the same time, the Company reduces
the generation of waste by optimising production processes, strengthening incoming inspection of raw materials, and
implementing a first-in, first-out inventory control system, thereby effectively reducing the volume of production waste
generated.
JIANAN ELEC 2025 Sustainability Report Deepening Environmental Governance and Advancing Circular Development
Circular Economy Raw Materials and Packaging Materials Management
As the depletion of non-renewable resources intensifies and pressure on the ecological environment continues to The raw materials used in JIANAN ELEC’s production include a wide range of categories such as electronic components,
grow, accelerating the shift from the traditional linear model of “take–use–dispose” to a circular economy model of metal structural parts and plastic parts.
“manufacture–use–collect–remanufacture” has become a global consensus and an inevitable choice.
The Company strictly complies with the Cleaner Production Law of the People‘s Republic of China and other applicable
JIANAN ELEC carries out green recycling assessments and maintains management records such as the Green laws, regulations and policy requirements. It implements category-based management for different types of raw
Recycling Assessment Report. Adhering to the basic principle of “100% waste recovery”, the Company systematically materials and continuously works to reduce the environmental impact of raw material use.
advances the implementation of the circular economy through three main pathways: technological improvement,
resource recycling and cultural advocacy.
In 2025, the Company achieved 100% recycling and reuse of waste, marking phased progress in its circular economy
JIANAN ELEC’s Major Actions and Achievements in Raw Materials Management in 2025
practices.
JIANAN ELEC’s Major Actions and Results in the Circular Economy in 2025 Category Raw Materials Major Actions and Achievements
• The Company required suppliers to provide test
Semiconductor chips, magnetic reports on toxic and hazardous substances such as
Electronic components
components, relays, etc. RoHS and REACH, thereby ensuring environmental
Technological Resource recycling Cultural advocacy compliance at the source.
enhancement
· The Company continued · D a m a g e d c o m p o n e n t s · Resource-saving slogans
t o o p t i m i s e p ro d u c t i o n arising during assembly were displayed in office • The Company promoted reduction-oriented design
processes. Through process were promptly returned to areas, and waste sorting Enclosures, bottom covers, terminals, optimisation, reducing the amount of raw material
Metal structural parts
improvements and refined suppliers for repair. reminders were placed etc. used for enclosures; and required suppliers to use
management, it reduced the at collection points to environmentally friendly materials.
· Surplus raw materials that
waste generated, thereby still retained use value, encourage employees to
minimising resource such as solder paste, were reduce waste generation
consumption at the source. and dispose of waste in the • The Company required suppliers to use recyclable
recycled on a regular basis
proper categories. Plastic components, meter casings, raw materials such as PC (polycarbonate) and
and reused in subsequent Plastic parts
terminal housings, etc. GF (glass fibre), ensuring that the materials are
production batches,
degradable and environmentally friendly.
maximising resource
utilization.
• The Company promoted the use of lead-free
Soldering materials Solder paste, solder bars, etc. solder paste and lead-free solder bars in place of
Organising Special Training on Green Recycling conventional solder paste and solder bars.
• The Company selected products with RoHS test
In 2025, JIANAN ELEC organised Special Training on Green Recycling, Coating materials Conformal coating, thinner, etc.
reports and low-VOC coatings.
covering all functional departments of the Company.
The training focused on explaining the latest requirements of national
recycling regulations, the Company’s annual green recycling targets,
and the current operation status of the recycling management While maintaining strict control over production raw materials, the Company has also extended its green principles to
system. Drawing on actual production practices, it also highlighted product packaging and continues to reduce the environmental impact of packaging waste through measures such as
frontline practice priorities such as solid waste sorting standards and packaging design optimisation.
recycling measures. Participants included production team leaders,
workshop supervisors, equipment maintenance personnel, and
administrative and logistics staff from various departments.
On-site Special Training on Green
To reinforce the effectiveness of the training, interactive Q&A sessions Recycling at JIANAN ELEC
and case discussions were arranged on site, enabling participating
employees to exchange views on environmental issues encountered
in their day-to-day work.
JIANAN ELEC 2025 Sustainability Report Deepening Environmental Governance and Advancing Circular Development
Ecosystem and Biodiversity Protection
Composition and Environmental Characteristics of JIANAN ELEC’s Packaging Materials in 2025
JIANAN ELEC’s production base is located in an industrial park and does not involve ecologically sensitive areas. Its
production and operating activities, therefore, have only a limited impact on ecosystems and biodiversity.
Cartons Paper trays Pallets
The Company upholds the principle of harmonious coexistence with ecosystems. It strictly complies with the
Material Composition Material Composition Material Composition Environmental Protection Law of the People’s Republic of China, the Wild Animal Conservation Law of the People's
Republic of China, and other applicable laws, regulations and policy requirements in the places where it operates.
· Made by bonding outer · Made from waste paper and · Made from natural wood In its day-to-day operations, the Company proactively identifies and assesses potential impacts on the ecological
linerboard, corrugated paper virgin fibre through pulping, through cutting and binding environment, and raises employees’ awareness of biodiversity through communication and training, encouraging them
and inner linerboard, and moulding, drying and processes, with sizes
to fulfil their shared responsibility for ecological protection.
produced through processes stamping. customisable as required.
such as cutting, slotting,
printing and stitching.
Environmental Characteristics Environmental Characteristics Environmental Characteristics
· Recyclable and reusable · Recyclable and reusable; can · Strong and durable, reusable JIANAN ELEC’s Major Actions and Achievements in Biodiversity Protection in 2025
multiple times; a degradable be customised in shape as many times, and continuously
green packaging material. needed; a degradable green improving recycling rates and Planning stage
packaging material. promoting circular use.
· The Company strictly complied with the management requirements of relevant government authorities in relation
to species impacts, nature reserves and drinking water source protection areas, and did not encroach on ecological
protection red line areas.
· For operating sites requiring environmental impact assessments, the Company completed the assessments in
accordance with the law.
As of the end of the reporting period, all packaging materials used by the Company were renewable, environmentally
friendly and non-polluting, and complied with the requirements of the RoHS Directive.
Construction phase
· The Company gave full consideration to ecological protection requirements and adopted effective measures such as
noise reduction and dust control, while arranging construction timing and methods appropriately to minimise impacts
on the surrounding ecological environment.
Landscaping design stage
· The Company planted a diverse range of trees and vegetation around and within the plant area to create ecological
buffer zones and provide suitable habitats for local species.
“Green Packaging Enterprises” Certificate of JIANAN ELEC
Operation phase
· The Company monitored light pollution and noise pollution in real time and reduced disturbance to surrounding life
through measures such as optimising lighting layouts and selecting low-noise equipment.
JIANAN ELEC 2025 Sustainability Report Innovation Leading the Future, with Quality as the Foundation
Innovation Leading the Future, with Quality as the Foundation
JIANAN ELEC upholds the development philosophy of “technology leadership, quality as the foundation, and Strategy
responsibility as a priority”. Guided by its goal of building an intelligent equipment manufacturing system that is
comprehensive, technologically advanced, scientifically managed and highly efficient, the Company drives product In managing product and service safety and quality across the full lifecycle, the Company systematically identifies
iteration through innovation, strengthens customer trust through quality, safeguards value delivery through data potential risks and opportunities and develops response strategies from three dimensions: prevention at the source,
security, and extends its responsibility boundaries through a sustainable supply chain. Together, these efforts reinforce customer-driven improvement and appraisal-driven implementation. In doing so, it deeply embeds the sustainability
the Company’s core competitiveness and lay a solid foundation for high-quality development. philosophy into its product and service safety and quality management system and strengthens the foundations for its
long-term development through the competitiveness of product and service quality.
Risks and Opportunities Related to Product and Service Safety and Quality and
Product and Service Safety and Quality Response Strategies of JIANAN ELEC
Time Horizon of Financial
JIANAN ELEC is principally engaged in the R&D, manufactoring, and sale of products such as smart metering Risks and Opportunities Response Strategies
Impacts Impact
products and systems, power distribution equipments and components, as well as new energy equipment and system
integration, and is committed to providing higher-value solutions for power grid enterprises and users of metering Risks
services. The safety and quality of the Company’s products and services directly affect three major areas: social well- · Prevention at the source:
being and equity, public safety and grid stability, and data security and energy management. As market requirements for Shift quality management
product quality, operational from a reactive approach
reliability and delivery to prevention at the
responsiveness continue to source, and strengthen
Governance rise, failure to keep pace with risk identification and
these demands could lead Decrease in control at the front end
Reputational Short, medium, and
to metering inaccuracies, operating of product and service
The Company strictly complies with the Product Quality Law of the People's Republic of China, the Law of the People’s risk
operational abnormalities and
long term
revenue management.
Republic of China on the Protection of Consumer Rights and Interests, and other applicable legal and regulatory other issues, thereby harming
requirements. It fully implements national and industry standards for products such as electricity meters and data residential electricity users’ · Customer-driven
collection terminals, actively responds to the specific technical specifications of power customers such as State rights and interests, damaging improvement: Internalise
the Company’s reputation and customers’ high
Grid and China Southern Power Grid, and proactively draws on advanced international technical standards, including
causing economic losses. standards as a driver of
IPC standards for electronic assembly, IEC standards and EN standards, in order to continuously improve its internal management upgrading,
systems. Opportunities translate market demand
into product and
By continuously strengthening service quality control
The Company has established a comprehensive internal quality management documentation system, led by the Quality product validation performance requirements in a timely
Manual and supported by the Incoming Inspection Policy for Components, Finished Product Inspection Procedures, under extreme conditions, the manner, and continuously
Company can reinforce customer Increase in improve product
Non-conforming Product Management Policy, and Defective and Recalled Product Handling Policy, thereby continuously Product
trust and brand reputation Medium to long term operating performance and service
strengthening its closed-loop quality control capabilities. In addition, the Company has formulated customer service opportunity
through its leading reliability and revenue experience.
systems such as the Customer Relationship Management System, the After-Sales Service Management Measures, and enhance its core competitiveness
the Customer Complaint Handling Procedures, providing comprehensive institutional support to continuously enhance in both domestic and overseas · Appraisal-driven
markets. implementation:
the safety and quality of the Company’s products and services. Incorporate core quality
Leveraging a quality indicators such as
management model of “intelligent market failure rates and
The Company has established a product and service safety and quality management framework featuring “three-tier manufacturing + full-process customer satisfaction
coordination and full-process coverage, ensuring that “every matter is clearly assigned and every stage is governed Increase in into the performance
Quality traceability”, product quality is
Medium to long term operating
by standards”. The Board of Directors bears ultimate responsibility for product and service safety and quality, with process managed in a closed-loop and appraisal of departments
revenue and personnel, using
authority to approve quality strategies and policies and final decision-making power over the allocation of key controlled manner from design
to delivery, enhancing product performance
resources. Within the scope of its authority, Senior Management is responsible for the overall planning of key quality and
quality and customer satisfaction.
service matters. At the execution level, the Administration and Human Resources Department is responsible for quality
management system certification, the Quality Management Department is responsible for implementing quality control
and improvement measures, and the Technical Service Department is responsible for after-sales service. Through close Impacts, Risks, and Opportunities Management
coordination among R&D, production, procurement, quality management and other departments, the Company ensures
that product and service safety and quality requirements run through the entire course of its operations. The Company takes a responsible approach to risk by emphasising proactive identification, transparent disclosure
and systematic response. It continues to place product and service safety and quality at the heart of its strategy,
systematically identifies and assesses the related impacts, risks and opportunities, and effectively addresses risks
and captures opportunities through closed-loop management measures, thereby continuously strengthening product
competitiveness and reinforcing the foundation of customer trust.
JIANAN ELEC 2025 Sustainability Report Innovation Leading the Future, with Quality as the Foundation
Product Safety and Guided by its business philosophy of “integrity first” and its value orientation that
“quality is the foundation and a driver of value creation”, the Company implements In 2025,
Quality
end-to-end quality management across the full product lifecycle to ensure that
product quality remains safe and stable and continues to meet customer needs.
the Company and its principal subsidiaries, Jiachen New Energy and Zhongrui Power, obtained
ISO 9001 Quality management systems certification.
JIANAN ELEC’s Major Actions and Results in Product Safety and Quality Management in 2025
the Company obtained ISO 10012 Measurement management systems certification.
System · Closed-loop management: The Company formulated and revised core policies including the
strengthening Incoming Inspection Policy for Outsourced Parts, Non-conforming Product Management the Company’s CNAS-accredited laboratory successfully passed re-evaluation and added 15
Policy and Defective and Recalled Product Handling Policy, thereby strengthening the new testing capabilities.
management system.
· Standards upgrade: In response to new business development needs and higher quality the Company drove and closed out 189 improvement actions through its quality management
requirements, the Company systematically revised inspection standards and procedures system, while organising dedicated improvement initiatives for 73 typical quality issues.
for 28 types of core components and test specifications for 13 categories of devices, and
newly developed test specifications for six categories of new devices, thereby reinforcing
its quality foundations at the source. The Company has established a quality control system across the full value chain, covering R&D,
· Process standardisation: The Company updated in parallel its in-process inspection production, delivery and after-sales service. During the reporting period, no formal product recall
requirements and finished product monitoring standards, making the operational basis event requiring notification to regulatory authorities occurred.
for each stage clearer and more precise and enabling quality to remain under control
throughout the process.
Reliable design · Safety by design: The Company strengthened safety and reliability considerations in GB/T 19001-2016/ISO
GB/T 19001-2016/ISO CNAS Laboratory
GB/T 19001-2016/ISO
product design and reinforced the quality foundation at the source through design reviews, 9001:2015
GB/T 19002-2003/ISO
failure mode analysis, and rigorous prototype reliability testing. Quality Management System 10012:2003
Quality Management System Quality Management System
Certificate Measurement Management
Certificate (Zhongrui Power) Certificate (Jiachen New
System Certificate
Energy)
Procurement quality · Prior control: The Company implemented rigorous supplier onboarding reviews to screen
high-quality suppliers with sound qualifications and stable quality at the source.
· In-process control: The Company carried out strict incoming material inspections, with a
total of 13,234 batches inspected in 2025. Control measures such as suspending the use of
problematic materials were adopted to ensure material quality remained under control.
· Post-event handling: For supplier quality issues identified during inspection, the Company
drove suppliers to conduct root cause analysis and improve their processes, thereby
achieving closed-loop quality management.
Process quality · Process control: The Company strictly implemented first-article confirmation, patrol
inspection and statistical process control, with a total of 119,761 units subject to patrol
inspection in 2025, ensuring stable and controllable quality during production.
· Risk prevention: The Company installed video surveillance at process stages prone to
physical damage, shifting process risk management from post-event traceability to in-
process prevention.
· Quality training: Through external certification training such as the Total Quality
Management Bootcamp and IPC-A-610, as well as internal skills enhancement and pre-
job/on-the-job training, the Company comprehensively improved employees’ quality
awareness, professional competence and ability to implement standards.
Finished product · Finished product sampling: The Company conducted rigorous spot checks of finished
quality products, with a total of 2,487 batches sampled in 2025, ensuring that products leaving the
factory met quality standards.
· Efficient testing: Leveraging its CNAS-accredited laboratory, the Company completed
product testing and reliability testing for 116 batches, effectively preventing recurring
defects from reaching the market.
Recall mechanism · Closed-loop recall: The Company established a full-process recall management mechanism
covering issue identification, plan formulation, approval and execution, and closed-loop
improvement, ensuring that major quality abnormalities can be responded to rapidly and
handled effectively.
JIANAN ELEC 2025 Sustainability Report Innovation Leading the Future, with Quality as the Foundation
Customer Management By establishing a full-process service mechanism covering pre-sales, in-sales and Carrying Out the Technical Service Training and Skills Assessment
and Service after-sales stages, the Company is able to respond precisely to customer needs, Programme
provide proactive technical support and ensure closed-loop issue resolution, thereby
continuously enhancing customer experience and service quality through end-to- From April 27 to April 30, 2025, the
end service delivery. Company carried out a four-day skills
training and assessment programme
under the theme of “Technology-led,
Service-oriented”. Senior R&D experts were
JIANAN ELEC’s Major Actions and Achievements in Customer invited to serve as trainers and provided
Management and Services in 2025 systematic instruction on both product
theory and practical on-site fault handling,
Pre-sales customer management and needs alignment
effectively strengthening the technical
On-site Skills Training and Assessment
· The Company established clear customer classification standards and implemented an account service personnel’s ability to independently
manager responsibility system, under which dedicated account managers are assigned to key identify and resolve on-site issues
customers and are responsible for providing full-lifecycle services.
· For core power grid customers, at least one on-site or video communication session was conducted
each month, with weekly follow-up during major projects. For general customers, one follow-up visit Metrics and Targets
was conducted each quarter, with immediate response provided for urgent matters, ensuring accurate
alignment with customer needs.
The Company has established a quality indicator management system. Guided by its vision of “zero defects, zero
incidents and zero recalls”, it has set annual management targets for product and service safety and quality and broken
In-sales technical support and efficient communication
them down into measurable and assessable quality indicators at each level, ensuring the effective implementation and
· The Company provided on-site guidance for product installation and commissioning, as well as remote continuous improvement of its quality strategy.
video training, and prepared standardised installation manuals to ensure metering accuracy and stable
system integration of electricity meters. Metrics and Performance Related to Product and Service Safety and
· The Company launched a customer relationship management (“CRM”) system to achieve full-process Quality of JIANAN ELEC in 2025
digital management of customer information, communication records, and service work orders, thereby
improving service efficiency and traceability and shortening response times by 30%.
Number of major liability incidents related to Number of product recall Total number of
product and service safety and quality incidents products recalled
After-sales customer complaint response and closed-loop handling
· The Company accepted customer requests through multiple channels, including the 400 hotlines, the
official website, the WeChat official account and account managers, while implementing a first-contact
responsibility system under which major issues are promptly escalated to management.
· The Company optimised the customer complaint handling process and established a closed-loop Customer acceptance pass rate First-pass yield of three-phase First-pass inspection pass rate
feedback mechanism to ensure responses within 24 hours, resolution of general issues within 48 hours, electricity meters for finished products
and issuance of solutions for major issues within 72 hours, thereby continuously improving customer
satisfaction. 99.9% 99.4% 99.9%
Customer feedback and service optimisation
Quality training coverage of Customer complaint
· Through monthly, quarterly, and half-yearly customer core positions resolution rate
visits, the Company gained an in-depth understanding of
customer needs, and regularly convened customer needs
review meetings to incorporate customer feedback into 100% 100%
product iteration and service optimisation processes.
· The Company conducted quarterly after-sales satisfaction
surveys and incorporated the survey results into the
performance appraisals of relevant departments, using In addition, by strengthening service support throughout the entire process, equipping teams with digital management
appraisals to drive service improvement. systems, and carrying out professional technical empowerment, the Company has achieved remarkable operating
results in overseas market expansion and service response.
achieved a 38.87% increase in overseas revenue to RMB34,505,415.57, with the
customer renewal rate for the domestic market staying above 95%.
In 2025, the Company:
GB/T 27922-2011 Five-Star After-Sales Service Certificate handled customer complaints in an average of 2.1 days, with customer satisfaction
with the handling results reaching 96.8%.
JIANAN ELEC 2025 Sustainability Report Innovation Leading the Future, with Quality as the Foundation
Innovation Strategy
The Company remains committed to innovation and to deepening its presence in intelligent manufacturing. It actively
JIANAN ELEC has built deep expertise in the smart metering sector over many years and continues to advance pursues a diversified development strategy, identifies relevant risks and opportunities, and formulates response
innovation in new products, new technologies and new processes. At the same time, it has proactively expanded into strategies accordingly.
new energy charging piles and integrated solutions spanning solar power generation, energy storage, charging and
distribution, building a diversified business portfolio and continuously deepening its industrial footprint.
Risks and Opportunities Related to Innovation and Response Strategies of JIANAN ELEC
Governance Risks and Opportunities
Time Horizon of
Financial Impact Response Strategies
Impacts
The Company has continued to improve its internal innovation policy framework across such areas as technical Risks · Continue to strengthen
standards, R&D management, innovation incentives and talent development. It has formulated and implemented core technology R&D and
technical specification documents such as the Standardization Specification for Component Symbols and Naming in During the R&D and promotion of quality control to ensure
Schematic Diagrams, Standardization Specification for Net Naming and Hierarchical Design in Schematic Diagrams, as new products such as charging accurate product metering
and energy storage equipment, and reliable operation,
well as internal management regulation documents including the Product Lifecycle Management Procedure, Test Data
the Company faces ongoing thereby effectively
Specification, Overseas Requirements Transfer Specification, and R&D Center Training Management System. challenges arising from rapid safeguarding the rights
Risk of new Decrease in
technological iteration, as well Short, medium, and and interests of residents.
product operating
as price competition triggered long term · Give full consideration
The Company has established an innovation management mechanism that combines strategic guidance, organizational development revenue
by industry overcapacity. If to product versatility,
coordination, and process control. By clearly defining the responsibilities of each department and carrying out full- innovation proves insufficient and advancement, reusability,
process monitoring of project progress and risks, it ensures that innovation activities are conducted efficiently and in an product competitiveness declines, cost-effectiveness, and
profit margins may come under scalability, so as to adapt
orderly manner.
further pressure. to market changes and
reduce the risks of new
Opportunities product development and
promotion.
Innovation Governance Structure of JIANAN ELEC · Keep abreast of
There are abundant business
opportunities in overseas technological trends
markets. Leveraging its in the industry, prevent
technological expertise in smart infringement risks, and
· Board of Directors: The Board of Directors is responsible for defining electricity meters and charging Increase in focus R&D efforts on
the strategic direction and key focus areas of technological R&D, Technological technologically advanced
Decision- piles, the Company is deepening Medium to long term operating
setting the strategic course for enhancing the Company’s technological opportunity fields.
making Level its presence in key markets and, revenue
competitiveness, and coordinating internal and external resources to
while consolidating its existing · Accelerate the expansion
provide strategic support and institutional safeguards for R&D innovation.
market position, is well-placed to of technology overseas,
continue expanding the scale of actively carry out
its overseas business. overseas market research,
and provide differentiated
products with strong
· Senior Management: Under the leadership of the Chairman, the Deputy price-performance
Management General Manager of Technology oversees all R&D activities and drives advantages.
Level the implementation of key tasks such as establishing and improving R&D · Through the diversified
mechanisms, conducting technical reviews and managing technical talents. strategy of “stabilising
In expanding its overseas the meter business,
business, the Company can, expanding beyond the grid
through continuous technological business and entering
innovation, respond rapidly to the the new energy sector”,
diverse needs of customers in proactively respond
Overseas Increase in
· R&D Center: Comprising the R&D Management Department, Product market
different markets. By leveraging
Medium to long term operating to challenges, reduce
Development Department and System Software Department, the R&D Center its technological strengths to dependence on any single
Execution Level opportunity revenue
works collaboratively to advance the development of R&D mechanisms, maintain a multidimensional market and disperse
technology R&D product iteration, and breakthrough innovation. balance between product quality demand fluctuation risks.
and price competitiveness, it can
create additional room for profit · Pursue both structural
cost reduction and
growth.
hardware cost reduction
to enhance the Company’s
product competitiveness
in overseas markets.
JIANAN ELEC 2025 Sustainability Report Innovation Leading the Future, with Quality as the Foundation
Impacts, Risks, and Opportunities Management
JIANAN ELEC’s R&D Workflow in 2025
To effectively address uncertainties in the innovation process, the Company systematically carries out risk management
and proactively seizes innovation opportunities. By regularly reviewing technology roadmaps, R&D progress and · In line with the principle that project requests are initiated by the requesting party, and R&D department
changes in the external environment, it dynamically identifies and assesses innovation-related risks, implements Project initiates project approval, the Company distinguished between customer needs and technical
closed-loop management across R&D processes, continuously reinforces the foundations of its innovation system, Initiation requirements arising from product upgrades and iterations, design optimisation, and product portfolio
completion. Through category-based project initiation management, it ensured that each type of R&D
and vigorously advances the development of intelligent manufacturing, thereby ensuring that innovation activities are requirement had a clearly defined responsible party and a clear implementation pathway.
carried out efficiently in a controllable risk environment.
Technological Innovation Guided by continuous innovation, the Company has, in recent years, introduced · Before project initiation, the Company conducted sufficient market research, confirmed customer
Management a n i n t e g r a t e d t e c h n o l o g i c a l i n n ova t i o n m a n a g e m e n t m o d e l fe a t u r i n g requirements, analysed technical feasibility, assessed commercial value, and issued a Requirements
softwareplatforming, test automation, and hardware standardisation in order Project Analysis Report as the basis for project initiation.
to systematically enhance the effectiveness of its R&D system. After customer Planning · Based on project objectives and resource conditions, the Company organised the development of
requirements have been analysed, reviewed and approved, product design is detailed project plans, including but not limited to project schedules, task breakdowns, resource
initiated, enabling improvements in both efficiency and quality and thereby delivering allocation, and milestone setting.
cost reduction and efficiency gains.
· The R&D departments carried out technology R&D in accordance with their respective responsibilities
and established a tiered reporting mechanism, under which any major or unexpected issues should be
Project reported to the Company’s management immediately.
JIANAN ELEC’s Integrated Technological Innovation Management Model Implementation · During project execution, the Company conducted end-to-end tracking and dynamic control over
schedule, cost, quality, and resources in accordance with project management requirements, promptly
identified changes in requirements and coordinated resource conflicts, and ensured that projects
advanced efficiently within a controllable scope.
Through the reuse of component symbol and net naming standards, standard package
libraries and standard circuits, the Company achieves standardised hardware design,
improving both development efficiency and design quality.
· In accordance with the Measures for Product Lifecycle Management, the Company carried out full-
Project process monitoring of the progress of project tasks undertaken by each development and testing
Hardware
Monitoring department, promptly issued warnings and escalated reports on schedule deviations and potential risks,
Standardisation
and followed up on issues in a timely manner to coordinate solutions, thereby ensuring that projects
progressed on schedule and to a high standard of quality.
Through the application of
Innovation By using automated testing
software platforming, the Management · Upon project completion, the Company compiled closure documents including technical documentation,
software to carry out testing,
Company reduces repetitive Model Project test reports, and outcome summaries, reviewed the completion status of each project, verified the
the Company reduces manual Closure
development, accelerates achievement of objectives and accepted deliverables, and summarised project experience to build up
Software Test intervention and enhances institutional knowledge.
software design and improves
Platforming Automation both testing efficiency and
both development efficiency
quality.
and design quality.
Guided by an innovation framework centered on free exploration, development leadership and industrial support, the
Company benchmarks itself against leading enterprises and continues to strengthen its efforts in four key areas:
innovation platform development, talent and team building, industry-university-research collaboration, and integration
Through this integrated technological innovation management model, the Company uses its Product Lifecycle into the industry ecosystem. Through these efforts, it has systematically enhanced its technological innovation
Management (“PLM”) System to implement closed-loop management of its R&D processes across the full cycle of capabilities and core competitiveness.
project initiation, planning, execution, monitoring and closure, thereby driving the efficient commercialisation of R&D
outcomes.
JIANAN ELEC 2025 Sustainability Report Innovation Leading the Future, with Quality as the Foundation
JIANAN ELEC’s Major Actions and Achievements in Innovation in 2025 Intelligent Manufacturing JIANAN ELEC is actively embracing the wave of digital transformation, leveraging
Upgrade digital technologies to empower business innovation and integrated development,
and accelerating its strategic transformation from an intelligent equipment
Innovation platform development manufacturer to a smart energy service provider.
· Innovation platform development: In 2025, the Company was recognised as a Zhejiang Provincial Industrial The Company continues to deepen technological innovation and system integration
Design Center. Its existing innovation platforms, including the Zhejiang Provincial High-tech Enterprise R&D in the field of intelligent manufacturing. By building an information-based middle
Center, Zhejiang Provincial Enterprise Research Institute, Zhejiang Provincial Postdoctoral Workstation, and platform, the Manufacturing Operations Management System (“MOM System”), and
Ningbo Municipal Engineering Technology Center, continued to operate efficiently. an industrial internet architecture, the Company has promoted the deep integration
· R&D environment enhancement: The Company established a component reliability laboratory and a product of equipment interconnectivity, data-driven operations and flexible production,
reliability laboratory, equipped with facilities for functional testing, EMC testing, electrical performance testing,
achieving intelligent scheduling and dynamic optimisation of the production process.
and simulated operation testing, providing solid support for product R&D and quality verification.
Driven by technological innovation, the Company has upgraded its manufacturing
capabilities, continuously enhancing production flexibility, responsiveness and
Talent and team building
quality consistency, and building a solid smart manufacturing foundation for large-
scale customisation and agile delivery.
· R&D team development: A technical team comprising hardware engineers, embedded software engineers,
structural engineers, system software engineers, test engineers and others has been established, covering key
areas such as hardware development, software design, structural design, system platform development, testing
Exploring New Opportunities in Digital Workshops and Energy Transition
and validation, and project management, with end-to-end R&D capabilities. Together
· Innovation incentives and assessment: The Company placed equal emphasis on incentives and restraints,
rewarding and annually recognising departments and employees that delivered R&D tasks efficiently and to On February 19, 2025, Holger Bingmann, Vice Chairman of the International Chamber of Commerce
a high standard, while also incorporating delays at key project milestones into departmental and individual (“ICC”) Global Executive Board and Chairman of ICC Germany, together with Ming Yue, General Manager
performance appraisals. of Beijing Techeng Science & Technology Co., Ltd. under CNOOC, and his delegation, visited JIANAN ELEC
· Technical talent development: Adopting a project-based approach to talent development, the Company cultivated for a research visit. The delegation focused on the Company’s smart electricity meter and charging pile
employees through hands-on practice and regularly organised technical sharing and training sessions to
production workshops and spoke highly of its technological capabilities in intelligent manufacturing and
exchange product development experience and professional knowledge, continuously empowering its technical
team. new energy. The two parties agreed to pursue in-depth follow-up exchanges on product technologies
relating to smart electricity meter terminals and charging piles for new energy vehicles.
Industry–university–research collaboration
· University collaboration network: The Company established partnerships with universities such as Southeast
University and carried out technical exchanges and joint R&D around areas such as smart metering and the
energy IoT.
· Joint research project breakthroughs: The Company also deepened cooperation with Ningbo University on joint
research projects, leveraging the research strengths of the university to advance technological innovation and
the commercialisation of research outcomes.
The Delegation Visiting the Company’s Exhibition Hall and Production Workshops
Integration into the industry ecosystem
· Participation in standards formulation: As an important member of authoritative domestic and international
industry Organizations such as the DLMS User Association, the STS Association, the China Instrument Metrics and Targets
Manufacturer Association, and the Standardisation Technical Committee for Electric Vehicle Charging Facilities
of the Energy Industry, the Company deeply participated in discussions on industry standards and technical In 2025, in alignment with its annual innovation strategy, the Company strategically shifted its management focus
collaboration. towards quality enhancement, structural optimisation and the commercialisation of innovation outcomes. With
· International conference exchanges: The Company actively participated in domestic and international objectives including the continued advancement of smart factory development, the establishment of data-driven
conferences related to standards and technologies, showcased smart metering and digital energy solutions, and decision-making mechanisms, and the shortening of new product application cycles, the Company set clear monitoring
continuously advanced global technical exchanges and market presence.
indicators and continued to drive their implementation.
In 2025, the Company:
Metrics and Performance Related to Innovation of JIANAN ELEC in 2025
had participated in the development of a total of 71 standards as of the end of the reporting
period, including 51 national standards, 6 industry standards and 14 group standards.
Number of invention patents Number of invention patent Number of invention Number of valid patents Number of valid software
applied in the principal applications during the patents granted during at the end of the reporing copyright registrations at
completed the acceptance of 1 Cixi dual carbon technology project and applied for a new major business reporting period the reporting period period the end of the reporting
science and technology project. period
organised 30 internal training sessions covering hardware, embedded software, testing and
system software, while the R&D Department and the Technical Support Department jointly 41 6 5 101 78
delivered 1 dedicated technical sharing session to enhance the capabilities of R&D and
technical support personnel.
JIANAN ELEC 2025 Sustainability Report Innovation Leading the Future, with Quality as the Foundation
Data Security and Customer Privacy
Intranet storage control: Under its traditional make-to-order operating model, core data was
The data involved in JIANAN ELEC’s business operations mainly include customer information, supplier information, stored in internal information systems such as ERP, Manufacturing Execution System (“MES”)
financial and operational data, and corporate management information. Of these, customer information involves and Warehouse Management System (“WMS”), and circulated only on the intranet without direct
connection to the internet, thereby reducing data exposure risks at the source.
commercial information and private data of key customers such as State Grid.
Data security Segregation of information access rights: Customer information was primarily stored in the sales
The Company complies with the requirements of the Data Security Law of the People’s Republic of China, the management order module of the ERP system. Access was controlled through a tiered permission structure:
and control the sales department can view detailed customer information, while other departments can
Cybersecurity Law of the People’s Republic of China, the Personal Information Protection Law of the People’s Republic
access only order numbers. This internal access segregation mechanism effectively protected
of China and other applicable laws and regulations. It has established and continuously improved its information customer privacy and commercially sensitive information.
security management system, and clearly stipulates the confidentiality obligations of suppliers and customers through
contractual arrangements, thereby strengthening the legal safeguards for data security and privacy protection.
By optimising the development of its information protection systems, the Company applies hierarchical and category-
based management to production data, customer information and other information, while adopting necessary
System certification assurance: With Capability Maturity Model Integration (“CMMI”) Level 3
technical measures such as encrypted storage and access control. The Company ensures that data circulation, certification and ISO/IEC 27001 Information security management systems certification, the
approval and processing are lawful and compliant, thereby continuously safeguarding data security and protecting System Company has developed systematic capabilities in data governance, standardised software
customers’ privacy rights. In 2025, the Company did not experience any incidents of penalties imposed by relevant certification development and end-to-end information security management.
authorities for violations of laws and regulations related to information security and privacy protection.
ISO/IEC 27001:2022
JIANAN ELEC’s Major Actions and Achievements in Data Security and Customer Privacy in 2025 CMMI-DEV V3.0 Maturity Level 3 Certificate
Information Security Management System
Certificate
Unified platform development: The Company established an information-based middle platform,
the MOM System, that complies with the requirements of national information technology
security standards for the industry. The system enables cross-system interconnection and
Information comprehensive data capture, while centrally strengthening cybersecurity controls and data
system access permission management, thereby reinforcing the foundation for data security protection.
development
Perimeter security hardening: In 2025, the Company deployed next-generation firewalls
and intrusion monitoring systems, extending information security controls to branches and
subsidiaries. It also implemented logical segregation between production and office network
segments and enforced stringent network access control policies to restrict unauthorised
external access and prevent internal unauthorised operations.
Enhanced Dual-layer security mechanism: The Company strengthened the dual safeguards of “data backup
technical and recovery + perimeter security protection”. On the one hand, it implemented daily scheduled
protection automatic backups for core business systems such as Enterprise Resource Planning (“ERP”)
and Product Lifecycle Management (“PLM”) systems to ensure data recoverability and business
continuity. On the other hand, it reduced the external attack surface by disconnecting external
network access outside working hours and, together with internal information boundary controls,
built a robust and coordinated information security defence.
Business system encryption: The Company continued to strengthen the security performance
settings of its procurement and sales platform. Information and data throughout the entire
bidding process were encrypted using technical means to avoid human manipulation.
JIANAN ELEC 2025 Sustainability Report Innovation Leading the Future, with Quality as the Foundation
Impacts, Risks, and Opportunities Management
Supply Chain Security and Sustainable Management
The main raw materials and core components required for JIANAN ELEC’s operations are concentrated in the electronic The Company always adheres to the trading principles of voluntariness, equality, fairness, honesty, and good faith,
components sector, including chips, plastic parts, relays, transformers, etc. and places emphasis on mutual support and shared growth. By establishing a full-process supplier management
system covering supplier identification and evaluation, foundational supplier management, supplier list management,
Governance evaluation and overall coordination, the Company continuously enhances the operational efficiency of the supply chain
and optimises the collaborative ecosystem, thereby providing solid support for high-quality development.
The Company strictly complies with the requirements of the Law of the People’s Republic of China on Bid Invitation and
Bidding and other applicable laws and regulations. It has formulated and implemented internal management policies, Supply Chain Security and Sustainable Management Process of JIANAN ELEC
including the Supplier Management Policy, Supply Chain Risk Management Policy, Emergency Supply Assurance Supplier identification and evaluation
Policy for Procurement and Supply Chain, and Green Supply Chain Management Policy, using institutionalised and
· Identify new suppliers based on actual production needs and conduct a comprehensive assessment of their
standardised management to support value creation and risk prevention across the supply chain. qualifications, production capacity, quality control, and delivery capability.
· Assess and review suppliers’ legality, compliance, completeness and validity of qualification documents, and the
Onboarding
To ensure the effective implementation of these policies, the management, under the authorisation of the Board of alignment between their category and business scope.
Directors, assumes overall responsibility for supplier management and procurement execution. Clear internal division
Supplier onboarding
of responsibilities and coordination mechanisms have been established. The leader in charge of the Production Center
(Procurement Department) oversees key matters including supplier identification and assessment, procurement · Enter into agreements, such as the Procurement Contract, the Long-term Strategic Agreement, and the Quality
Assurance Agreement, to define cooperation terms and performance standards.
demand analysis, planning and contract management, while dedicated supplier management and procurement
· Sign notifications covering social responsibility, quality management, environmental management, occupational health
management personnel are responsible for day-to-day implementation. and safety, integrity and compliance.
Strategy Foundational supplier management
In developing its supply chain, the Company actively implements risk management measures, systematically analyses · Regularly track suppliers’ credit standing, financial position, technical capability, quality and service performance, and
the potential impacts of relevant management measures, and identifies associated risks. By optimising supplier establish a supplier credit database to dynamically optimise foundational supplier management in line with business
management mechanisms and promoting the development of a sustainable supply chain, the Company effectively development needs.
responds to various risk challenges while also capturing potential development opportunities. Supplier list management
Risks Related to Supply Chain Security and Sustainable Management · Establish and dynamically update the supplier list in accordance with internal policies and standards, covering supplier
and Response Strategies of JIANAN ELEC names, contact details, products and services, cooperation history, delivery capability, price levels and contract status,
thereby improving supplier information transparency.
Time Horizon of Financial
Ongoing management
Risks Response Strategies
Impacts Impact Supplier relationship management
Non-compliant internal transactions with suppliers · During cooperation · Collaborate with suppliers to discuss and address various issues arising during the procurement process, coordinate
or non-transparent procurement procedures may Increase in with suppliers, adhere
resources, and track progress to ensure effective issue resolution and maintain sound cooperative relationships.
Short, medium, and
Compliance risk expose the Company to legal liability and regulatory operating to lawful, compliant · Regularly collect suppliers’ feedback on procurement processes, payment methods, and cooperation attitudes, analyse
long term
penalties arising from commercial bribery or costs and transparent the results, and drive improvements, continuously optimising procurement management and enhancing satisfaction
improper benefit transfer. transactions and strictly with the cooperation.
observe business
Negative ESG incidents involving suppliers may ethics and regulatory Supplier incentives and training
be transmitted to the Company through the requirements.
Decrease in · Regularly organise supply chain training and exchange activities to strengthen suppliers’ understanding of requirements
Reputational supply chain, triggering public concern and media Short, medium, and
operating · Apply rigorous supplier relating to quality, delivery, compliance and other aspects, and enhance their sense of fulfilment responsibility and
risk attention, and causing associated damage to the long term onboarding controls to
revenue collaborative capability.
Company’s image, which is not conducive to the safeguard supply chain
development of a sustainable brand. security and stability at · Organise the annual JIANAN ELEC Outstanding Supplier Awards to recognise high-performing suppliers and encourage
the source.
continuous improvement in product and service quality.
If supplier onboarding, evaluation and exit
mechanisms are not properly implemented,
· Improve the supplier
management
and classified and tiered management remains
Supplier Decrease in mechanism, regularly Supplier evaluation
Appraisal and optimisation
inadequate, the stability of supply of core materials
management Medium to long term operating implement performance
model risk
may be weakened, and quality controllability
revenue evaluation and appraisal · Organise monthly supplier performance appraisals and conduct classified evaluations of both materials suppliers and
may decline. This may in turn affect production service suppliers from the two dimensions of supplier performance and product performance.
mechanisms, and urge
continuity and product delivery quality, thereby
reducing overall supply chain resilience.
suppliers to make timely · Take into account factors such as product quality, price and delivery lead time and ensure that evaluation results are
rectifications. objective and comprehensive, thereby providing a basis for supplier optimisation and dynamic adjustment.
· Continue to advance · Make environmental performance and social responsibility important references for supplier onboarding and
Global events such as conflict minerals issues and the development of performance appraisal, thereby promoting a compliant and sustainable supply chain.
disruptions in the supply of critical minerals may a responsible and
directly affect upstream suppliers’ ability to secure sustainable supply
Decrease in
Supply chain the supply and quality of raw materials such as Short to medium chain, and build a
operating
security risk electronic components, structural parts and battery term supply chain ecosystem
revenue Supplier exit mechanism
materials. This may, in turn, affect the safety and that is safe and stable,
quality of the Company’s products and services green and transparent,
· For suppliers that do not meet the requirements, promptly initiate the procedures for suspension of use, rectification
Exit
and result in direct economic losses. and mutually beneficial
or elimination, to ensure that the quality of suppliers’ products and services continuously meets the Company’s
and prosperous.
requirements.
JIANAN ELEC 2025 Sustainability Report Innovation Leading the Future, with Quality as the Foundation
Committed to “fair competition based on effective competition and mutual benefit”, the Company has actively To safeguard supply chain security, the Company has established a supply assurance mechanism centered on risk
responded to the State Grid Green Supply Chain initiative’s “One Evaluation System” and “Five Guiding Directions”, and management, supplier evaluation, and cost optimisation. By closely tracking market dynamics and establishing
has continued to advance sustainable supply chain development through transparent procurement, green procurement, diversified supply channels for key materials, the Company has effectively reduced the risk of over-reliance on any
innovative procurement, digital and intelligent procurement, and quality-oriented procurement. single supplier. At the same time, based on a comprehensive assessment of suppliers’ product quality, fulfilment
capability, breach records and service responsiveness, the Company dynamically updates its supplier list. Through
measures such as identifying alternative materials, expanding procurement channels and improving procurement
JIANAN ELEC’s Major Actions and Results in Sustainable Supply Chain Development in 2025
procedures, it continues to enhance procurement efficiency and economic value while ensuring supply stability.
Transparent procurement
· Upholding the principles of openness, fairness and impartiality, the Company strictly fulfilled procurement Metrics and Targets
requirements in accordance with laws and regulations, followed a market-oriented mechanism featuring open
market access, open pricing and open supplier participation. It disclosed detailed, specific and non-discriminatory With sustainable supply chain development as a core objective, the Company has established key performance
procurement requirements to all suppliers, thereby ensuring that the entire procurement process is lawful,
indicators across such dimensions as green development, compliance and resilience, and has fully embedded them into
compliant, fair and equitable.
the entire supplier management process, including supplier onboarding, evaluation, appraisal and exit, so as to ensure
· The Company established a supplier integrity and performance management system to regulate the transaction
behaviour of both parties in terms of contract management, honest operations, quality management, anti-
the effective implementation and continuous optimisation of its sustainable development strategy across the supply
monopoly and anti-unfai competition. It also took action against suppliers that violated the principles of integrity. chain.
Metrics and Performance Related to Sustainable Supply Chain
Management of JIANAN ELEC in 2025
Green procurement
· The Company incorporated the principle of environmental protection into materials procurement and supplier Number of measures implemented to Number of supplier interviews and joint on-
management, guiding suppliers to fulfil social responsibilities relating to environmental protection and resource manage problematic suppliers site inspections conducted
conservation, and encouraging them to develop green technologies and products.
· The Company obtained certification for its green supply chain management system, and its green supply chain
management practices received authoritative recognition. 8 8
Innovative procurement
· The Company communicated its product technology iteration requirements to suppliers and encouraged them to
upgrade their process standards accordingly, so as to ensure that the technical indicators of core materials remain
aligned with the Company’s product roadmap.
· For key materials such as relays and power management chips, the Company worked with technical departments
to verify domestic substitution solutions. Domestic components that pass testing were given priority for inclusion
in the procurement catalogue, with market-based purchase orders used to support the technical maturity and
production ramp-up of domestic suppliers.
Digital and intelligent procurement
· Leveraging the MOM system, the Company integrated data flows covering orders, materials, production and
quality, enabling intelligent matching of procurement needs, online supplier collaboration and real-time tracking of
material progress, thereby improving procurement efficiency and supply chain flexibility.
Quality-oriented procurement
· The Company strictly implemented incoming material inspection procedures. Based on the raw material
specifications and quality standards provided by suppliers, it carried out specification checks, quality inspections
and inspection results record-keeping to ensure that all incoming materials meet production requirements, thereby
safeguarding smooth production at the source.
JIANAN ELEC 2025 Sustainability Report Nurturing a People-Centered Culture and Fulfilling Social Responsibility
Nurturing a People-Centered Culture and
Fulfilling Social Responsibility
JIANAN ELEC places people at the heart of its values and responsibility at the core of its actions. Beginning with care
for the smallest units of society and extending to the broader community, the Company remains committed to its Strategy
people-centered principles. It works to safeguard employees’ lawful rights and interests, support their growth and
development, and protect their occupational health and safety, while also extending its sense of responsibility to wider Focusing on the entire recruitment and employment process, the Company systematically identifies potential risks
areas of society. Through active participation in public welfare and rural revitalization initiatives, the Company brings and opportunities and implements targeted response strategies to ensure compliant employment and talent stability,
together small but meaningful actions for the greater good. thereby providing human capital support for the sustainable development of the Company.
Employees Risks and Opportunities Related to Employees and Response Strategies of JIANAN ELEC
JIANAN ELEC adheres to a people-centered approach and strives to create a workplace where employees can build Time Horizon Financial
Risks and Opportunities Response Strategies
fulfilling careers. The Company is dedicated to fostering a fair, inclusive and warm working environment, continuously of Impacts Impact
improving remuneration and benefits as well as career development pathways, and paying close attention to employees’
physical and mental well-being and work-life balance, so as to advance employee value creation alongside corporate Risks
growth. · Standardise personnel recruitment:
If the Company breaches relevant Strictly comply with national laws
laws and regulations or becomes and regulations, establish an open,
involved in labour disputes or fair and impartial recruitment and
Governance hiring mechanism, and ensure that
improper employment incidents, Short,
Decrease in employees enjoy equal opportunities
Compliance it may face labour inspection medium,
operating and lawful rights and interests from
The Company strictly complies with the requirements of the Labor Law of the People’s Republic of China, the Labor risk penalties, legal proceedings and and long
revenue the start of their employment.
financial compensation liabilities, term
Contract Law of the People’s Republic of China, the Social Insurance Law of the People’s Republic of China, the Law of thereby damaging its image as · Improve the remuneration and benefits
the People’s Republic of China on the Protection of Minors, the Provisions on the Prohibition of Child Labor and other a law-abiding and compliant system: Formulate a s c i e n t i f i c
applicable laws and regulations. It has formulated and implemented employee management policies, including the business. remuneration and benefits protection
Talent Development Plan and the Human Resources Management Policy, thereby establishing a sound institutional system to ensure that wages are
foundation to support the shared growth of employees and the Company. paid in full and on time.
If the Company violates relevant · Strengthen employee training and
laws, regulations, or internal policies development: Establish a multi-
By establishing a human capital governance structure with clearly defined authorities and responsibilities and in areas such as recruitment, hiring, l eve l t r a i n i n g s y s t e m c ove r i n g
coordinated collaboration across different levels, the Company advances talent recruitment, cultivation, incentives and contract execution, salary payment, Short,
Employee Decrease in new employee induction, job skill
employee protection in an integrated manner, continuously enhances organizational effectiveness, and provides strong social insurance contributions, working medium, enhancement and management
employment operating
talent support for high-quality development. hours management, or termination of and long capability development, and provide
risk revenue
employment relationships, it may give term continuous support for employees’
rise to labour disputes, administrative career development.
Employee Governance Structure of JIANAN ELEC penalties, and reputational damage,
resulting in economic losses. · Improve the performance appraisal
mechanism: Build a scientific,
· Board of Directors: The Board of Directors is responsible for reviewing remuneration transparent and quantifiable
Decision- plans for directors and Senior Management, and making strategic decisions on key Opportunities performance appraisal system, link
making Level
matters such as human capital allocation, organisational effectiveness, and talent appraisal results to remuneration
pipeline development. adjustments, position promotion,
excellence awards and incentives,
and stimulate employee motivation
and creativity.
· Senior Management: Under the leadership of the Chairman, Senior Management is By building a scientific talent · Optimise the working environment
Management responsible for coordinating and advancing the implementation of key tasks such as recruitment, cultivation and incentive and employee care mechanism:
Level human resources strategic planning, talent management, remuneration and incentives, Talent team system, the Company is able to
Medium to
Increase in Continuously improve the office
and performance evaluation. development cultivate a workforce that is well- operating and production environment, pay
long term
opportunity structured, highly capable, stable revenue attention to employees’ physical
and reliable, thereby supporting its and mental health, establish
sustainable development. smooth communication channels
· Administration and Human Resources Department: Under the leadership of the and care mechanisms, and foster a
Execution department manager, a working team composed of specialists in recruitment and staffing, harmonious, inclusive, and positive
Level remuneration and performance, training and development, and employee relations is working atmosphere.
formed to implement various employee management-related tasks.
JIANAN ELEC 2025 Sustainability Report Nurturing a People-Centered Culture and Fulfilling Social Responsibility
Impacts, Risks, and Opportunities Management A Full Moon at Mid-Autumn, Lanterns Aglow at Dusk—Mid-Autumn Festi-
val-Themed Event
To effectively address potential risks in the employee management process, the Company regularly reviews key areas
On September 30, 2025, JIANAN ELEC organised a Mid-Autumn Festival-themed event under the theme
such as recruitment and allocation, training and development, remuneration and benefits, performance appraisal,
“A Full Moon at Mid-Autumn, Lanterns Aglow at Dusk”. Employees took part in activities such as solving
and labour relations, dynamically identifies and assesses risks and opportunities throughout the entire employment
lantern riddles and making decorative lanterns. The event not only offered an opportunity to learn
process, and has established and improved corresponding response mechanisms.
traditional crafts and relax, but also deepened employees’ understanding of traditional culture through
hands-on participation, while enhancing their sense of belonging and well-being.
Employee Employment The Company adheres to the principle of equal employment and implements an
and Rights and Interests employment philosophy centered on responsibility, accountability, proactivity, and
dedication. It has established fair and transparent procedures for hiring, recruitment
and termination, and, through the continuous optimisation of its employment
management, effectively safeguards employees’ rights and interests while fostering
harmonious labour relations.
JIANAN ELEC’s Major Actions and Achievements in Employee Employment and Rights and Interests in 2025
• Fair and transparent recruitment: The Company established an open, fair, and impartial recruitment and
hiring mechanism. Through standardised recruitment procedures, clear job standards, and transparent Mid-Autumn Festival-Themed Event
selection processes, it ensured that all candidates enjoyed equal employment rights.
• Scientific and impartial employment: The Company adhered to the use of scientific and systematic
methods and tools for talent selection and equal employment, and prevented employment decisions Employee Training The Company implements a talent development policy of centralised recruitment, training
Compliant from being affected by discriminatory practices related to gender, region, ethnicity, religion, or other and Development and placement. By establishing dual career development pathways for technical and
employment factors. management talent, and refining an incentive mechanism that combines short-term and
• Employment compliance review: The Company strictly reviewed employees’ onboarding information long-term incentives, it aligns employee objectives with organizational goals and promotes
to ensure that employees were employed voluntarily, and resolutely prohibited the employment of child the coordinated advancement of employee value and corporate development.
labour and any form of forced labour.
On this basis, the Company continues to deepen the implementation of its talent strategy,
• Equal pay for equal work: The Company adhered to the principle of equal pay for equal work for all innovate talent selection and development models, and establish three talent pools, namely
categories of employees, ensuring that all employees enjoyed fair remuneration under equal conditions. a “High-Calibre Talent Pool”, a “Reserve Pool for Middle Management”, and a “Young Key
• Protection for flexible workers: The Company attached importance to protecting the rights and interests Talent Pool”. By developing a tiered and categorised employee training system, the Company
of flexible workers, ensuring that they received equal treatment in remuneration, benefits, occupational systematically enhances the professional capabilities and overall competence of its
safety, and other aspects.
Equal workforce.
employment • Diversity and inclusion development: The Company worked to build an inclusive and diverse workforce,
respected employee diversity, and promoted the integration and development of employees from In accordance with the patterns of talent development, the Company has further built
different backgrounds. and refined professional, differentiated and progressive career development pathways for
three categories of talent: operational management personnel, professional and technical
• Sound remuneration system: The Company implemented a diversified remuneration system primarily
personnel, and skilled operational personnel. In doing so, it fully stimulates employees’
based on position-based and performance-based pay. Wages were paid in full and on time in accordance
with the law, safeguarding employees’ basic rights to remuneration. vitality in innovation, initiative and value creation. For graduates recruited from various
• Statutory social insurance coverage: In accordance with the law, the Company contributed to pension, universities each year, the Company formulates tailored training plans and development
medical, work-related injury, unemployment and maternity insurance for employees, and also provided pathways to support their rapid growth.
housing fund contributions, enterprise annuity plans and supplementary commercial insurance, offering
Remuneration comprehensive and standardised social security support.
and benefits JIANAN ELEC’s Talent Pool Development Model
• Working hours and leave management: The Company strictly implemented the national working
hours system and ensured that employees enjoyed all statutory holiday, rest, and leave entitlements in • Focusing on the Company’s core technical experts and business leaders, this programme places
accordance with the law, thereby supporting work-life balance. emphasis on strengthening their strategic vision and industry influence. Training mainly includes high-level
• Special benefits protection: In addition to statutory benefits, the Company provided special insurance advanced programmes, key technical research projects and external benchmarking-based learning, while
coverage and maternity-related protection for female employees. supporting participation in the formulation of national standards and research into frontier technologies. In
High-Calibre terms of career development, participants may progress through the technical pathway to positions such
Talent Pool as President of the Research Institute, or transition into management roles, and are also included in long-
• Workplace environment development: The Company actively fostered a fair, just, harmonious and
term incentive schemes such as equity incentives.
inclusive workplace atmosphere, respected employee diversity and enhanced employees’ sense of
belonging. • This pool draws participants from outstanding frontline talent and is designed to strengthen their
• Care for female employees: The Company regularly organised discussion sessions for female integrated management capabilities and cross-functional collaboration skills. Through annual management
employees to listen to their views, understand their career development aspirations and address their training programmes and job rotation practices, participants are accelerated towards roles such as
specific needs. It also provided facilities such as women’s health rooms and mother-and-baby rooms. Reserve Pool department heads or project managers. Annual evaluations and dynamic adjustments are conducted, and
• Cultural and sporting activities: The Company regularly organised team-building activities, sports for Middle high-performing participants are given priority for promotion, thereby opening up integrated advancement
Communication
events, film screenings and other cultural and sporting activities to enrich employees’ lives outside work Management pathways combining professional and managerial development.
and care
and strengthen team cohesion.
• Targeting high-potential employees with one to three years of service, this pool is designed to strengthen
• Democratic communication mechanism: The Company promoted open communication through the
professional foundations and reinforce identification with the Company. Through on-the-job training,
establishment of the Employee Representative Congress, which convened regular annual meetings.
mentor guidance, and cross-departmental secondments, participants rapidly improve their practical
This helped maintain open channels for collecting and responding to employee feedback, promote the
Young Key capabilities. Depending on individual strengths, they may pursue either technical or management pathways,
effective implementation of reasonable suggestions, and foster harmonious labour relations.
Talent Pool while outstanding performers may be admitted early to the reserve management pool to accelerate their
• Assistance for employees in need: The labor union provided care and support to employees in difficulty, development.
JIANAN ELEC 2025 Sustainability Report Nurturing a People-Centered Culture and Fulfilling Social Responsibility
JIANAN ELEC’s Employee Training System
Metrics and Targets
Routine training System and procedure development
• Safety training, new employee training, • Training on the Company’s quality management In 2025, with compliant employment and the protection of employee rights and interests as its core foundational
job knowledge training, and statistical techniques system, internal policies, and standardised objectives, the Company set annual performance indicators and dynamically tracked their implementation, while
training system operation focusing on enhancing employee communication and care and improving training and development pathways, so as to
continuously optimise its employee management system.
Employee Training System
Metrics and Performance Related to Employee Management of JIANAN
Professional skill enhancement Cultural training ELEC in 2025
• Training on production technologies, testing • Training on work-related injury knowledge and
skills, R&D technologies, and new products and handling procedures, and anti-fraud awareness
business Number of Employee Representative Employee training coverage rate
training Employee labour contract signing rate
Congress meetings held
By continuously improving the rank management system, promotion mechanism, incentive and restraint mechanism,
and skills training system, the Company systematically advances employee training and development, fully stimulates 100% 1 100%
talent vitality, and provides strong human capital support for high-quality development.
JIANAN ELEC’s Major Actions and Achievements in Employee Training and
Development in 2025
• The Company continued to improve the internal rank system management
measures by further refining and clarifying the conditions for promotion, demotion,
Improve internal and exit for personnel at each rank.
rank management • The Company regularly organised the Professional Title Evaluation Committee
to complete the review of junior, intermediate, and senior professional titles in the
engineering series, thereby continuously improving employees’ professional titles.
• The Company adopted a competitive appointment system. By publicly releasing
information on vacant positions, it allowed all eligible employees to apply for the
Ensure fair and
competition.
transparent
promotion • If employees have any objections to the appointment results, they may provide
feedback during the announcement period through suggestion boxes, telephone or
email.
• The Company improved the mechanism linking the job rank and remuneration
Ensure alignment system with performance appraisal results, and signed the Annual Organizational
between incentives Performance Target Responsibility Agreement to ensure that incentives are
and accountability effectively aligned with contributions.
• The Company implemented dynamic management and ongoing evaluation for
all personnel included in the talent cultivation plan, continuously optimising the
effectiveness of talent cultivation.
• The Company organised employees to participate in training for skill grade
Encourage employees advancement, encouraged employees to obtain skill certificates, and granted
to participate in skills rewards to eligible employees upon certification.
training • The Company carried out specialised training for employees at all levels and
across professional fields, strengthened the pipeline of reserve talent, and actively
recommended outstanding employees for high-level programmes, thereby
comprehensively enhancing workforce quality.
JIANAN ELEC 2025 Sustainability Report Nurturing a People-Centered Culture and Fulfilling Social Responsibility
Risks Related to Occupational Health and Safety and Response Strategies of JIANAN ELEC
Occupational Health and Safety Time Horizon Financial
Risks Response Strategies
of Impacts Impact
JIANAN ELEC upholds the core philosophy that “all risks can be controlled, and all incidents can be prevented”. Guided
by the principles of “putting people first, focusing on prevention, pursuing continuous improvement and fostering •System support: By improving the
occupational health and safety
harmony”, the Company continues to strengthen its occupational health and safety management. It reinforces
management system, the Company
management foundations, consolidates safety responsibility, addresses major hazards, and takes a range of measures strengthens safety responsibilities,
to strengthen its occupational health and safety defences. ensures compliant operations, and
prevents regulatory penalties and legal
risks.
Governance If occupational health and safety • Risk control: The Company systematically
management fails to comply with identifies and prevents occupational
applicable laws and regulations, health and safety risks, reducing the
The Company strictly complies with the requirements of the Work Safety Law of the People's Republic of China, the Law or if a major work safety incident likelihood of incidents at source, and
of the People’s Republic of China on Prevention and Control of Occupational Diseases and other applicable laws and or occupational disease event Short, Increase in mitigating the impact of production
Compliance disruptions on operational stability.
regulations. It has translated external legal and regulatory requirements into internal management policies, including occurs, the Company may face medium, and operating
risk
the Safety Education Management Policy, Fire Safety Management Policy, Electrical Safety Management Policy regulatory penalties, suspension long term costs • Emergency response: The Company
of operations for rectification, or strengthens its emergency management
and Work-Related Injury Incident Management Policy. Through the formulation and implementation of work safety even legal proceedings, thereby mechanisms and enhances its capability
management policies, together with the establishment and continuous improvement of an accountability system for the affecting normal production and to respond to unexpected incidents,
prevention and control of occupational disease hazards and an occupational health management system, the Company operations. t h e re b y m i n i m i s i n g t h e i m p a c t o f
effectively safeguards employees’ occupational health and safety. accidents on schedules and delivery.
• Culture building: The Company promotes
The Company has established and improved an occupational health and safety governance structure with clearly full employee participation in safety
defined authorities and responsibilities and efficient coordination, systematically advancing the implementation of its management and fosters a strong
culture of health and safety, helping to
management system and providing a strong safeguard for employees’ occupational health and work safety.
prevent reputational risks arising from
management lapses.
Occupational Health and Safety Governance Structure of JIANAN ELEC
• Board of Directors: Responsible for reviewing annual work objectives and major
Decision- resource allocations, regularly overseeing safety performance, and ensuring Impacts, Risks, and Opportunities Management
making Level that occupational health and safety management is aligned with the Company’s
strategic direction.
The Company continues to improve its occupational health and safety management system and has established a
safety management mechanism that combines corporate oversight and management with the proactive participation of
all employees. By establishing a “Zero Violations” communication and feedback mechanism, the Company encourages
employees to actively participate in safety management and put forward suggestions for improving day-to-day safety
• The Work Safety Leadership Group: Responsible for overall coordination and management, and, in accordance with the relevant rules and regulations, rewards employees whose feedback and
Management special governance, and for organising safety inspections, hazard rectification,
Level suggestions are effective. In this way, the Company promotes the implementation of safety responsibilities at both
and emergency drills.
the post and individual levels, and continues to strengthen the foundations of its occupational health and safety
management. As of the end of the reporting period, the Company and its subsidiary Jiachen New Energy had obtained
ISO 45001 Occupational health and safety management systems certification.
• Administration and Human Resources Department: Responsible for the
Execution development of the Environment, Health and Safety ("EHS") system and
Level overseeing work safety and occupational health management.
Strategy
By identifying occupational health and safety risks, the Company systematically puts in place response measures
across four dimensions: system enhancement, risk prevention and control, emergency preparedness and culture
building. In doing so, it seeks to ensure compliant operations, reduce the likelihood of incidents, and safeguard
employee health and stable production.
JIANAN ELEC 2025 Sustainability Report Nurturing a People-Centered Culture and Fulfilling Social Responsibility
JIANAN ELEC’s Major Actions and Achievements in Occupational Health and Safety Management in 2025
GB/T 45001-2020/ ISO 45001:2018 GB/T 45001-2020/ISO 45001:2018
Management • The Company reinforced safety responsibilities. With reference to graded and categorised safety Occupational Health and Safety Management System Occupational Health and Safety Management
system duty lists, the Company revised its “role-based dual-responsibility” list, improved its performance Certificate System Certificate (Jiachen New Energy)
improvemen appraisal plan, and linked safety responsibilities to individual performance appraisals.
• The Company established and continuously improved occupational health records, systematically
documenting key information such as the testing and evaluation of occupational disease hazard
factors, occupational health examinations, and the maintenance of protective facilities, to ensure
that the records are complete, accurate, and effective, thereby providing standardised support for
occupational health management.
• The Company established a dual prevention system for the hierarchical management and control
of safety risks and the investigation and remediation of hidden hazards, and improved its risk
Safety risk
prevention and mitigation mechanisms.
prevention
• The Company organised internal and external experts to carry out concentrated investigations into
work safety hazards, placed major accident hazards under designated oversight, and conducted
monthly follow-up supervision.
• The Company included chemical hazardous substances and noise generated by machinery and
equipment in the management of occupational disease hazard factors.
• The Company carried out surveys of occupational disease protection facilities, implemented
measures for dust prevention, toxic substance prevention, noise prevention, and heatstroke
prevention and cooling, and conducted regular inspection and maintenance of protection facilities.
• The annual regular occupational disease examination and testing for workplace hazard factors
Occupational were conducted, with a 100% occupational disease examination coverage rate for hazard-exposed
health positions.
monitoring
• The Company provided all employees in operational roles with qualified personal protective
equipment, promoted and supervised its proper use, and distributed labour protection supplies on
a regular basis.
Organising a Free Traditional Chinese Medicine Consultation to Support
Employee Health
• The Company established a psychological counselling room and carried out psychological
Physical and
assessments, employee assistance programmes and mental health training, maintaining From March 31, 2025 to April 3, 2025,
mental health
continued attention to employees’ mental well-being. JIANAN ELEC, together with the Company’s
care
• The Company improved employee fitness venues and facilities and regularly organised fitness trade union, invited traditional Chinese
activities suited to different workplaces and working arrangements.
medicine health management practitioners
from the Translational Application Base
of the Shanghai Research Center for
• The Company organised special drills such as fire drills, lift shutdown drills, and Red Cross first- Acupuncture and Meridians to provide
Emergency
response aid training to strengthen employees’ emergency response capabilities in handling unexpected health consultations and on-site diagnosis
capacity incidents. and treatment services for more than
building • The Company conducted fire and emergency evacuation drills, signed fire safety responsibility 100 employees. During the event, the
statements, and improved its fire safety management system. practitioners used traditional diagnostic
methods to offer advice on diet, emotional
well-being and exercise, and also provided Traditional Chinese Medicine Health Management Practitioners
therapies such as cupping and tuina Guiding Employees Through Stretching Exercises on Site
Health massage. The event enabled employees to
awareness • The Company regularly organised health lectures and carried out health awareness and
promotion activities. experience the traditional Chinese medicine
enhancement
culture and enhanced their awareness of
personal health management.
JIANAN ELEC 2025 Sustainability Report Nurturing a People-Centered Culture and Fulfilling Social Responsibility
Safety Month Awareness Campaign Social Contributions and Rural Revitalization
On June 26, 2025, JIANAN ELEC, together Guided by the philosophy of “create opportunities for society to realise aspirations”, JIANAN ELEC strictly complies
with the Company’s trade union, organised with the Charity Law of the People’s Republic of China, the Law of the People’s Republic of China on the Promotion of
and carried out an online safety knowledge Rural Revitalization and other applicable laws, regulations and policy requirements, while actively fulfilling its social
competition. Participants were given one responsibilities in areas including poverty alleviation, education and community environment improvement.
minute to complete the quiz. All employees
who took part received a participation prize, Since its establishment, the Company has continuously carried out targeted assistance and charitable donations, built
while the ten highest scorers were awarded volunteer teams, and regularly organised Party member volunteer service activities for the public good. Leveraging its
the “Safety Excellence Award”. Through this professional strengths in the electrical industry, it has also conducted public-interest educational activities for local
quiz-based activity, the Company helped communities, including electricity-related knowledge dissemination and safe electricity use awareness programmes.
employees reinforce their awareness
of the non-negotiable importance of
work safety, while strengthening their Safety Volunteers in Action - JIANAN ELEC Supports Community Safety
capabilities in hazard identification and Governance
emergency response. The event also injected
Scene from the Quiz Event On November 26, 2025, the Party Branch of JIANAN ELEC joined hands with the Changhe Town Office for
fresh momentum into the Company’s
efforts to build a safety management Safety and Rule of Law to organise a themed Party-member activity, “Safety Volunteers—JIANAN ELEC
system characterised by “full employee in Action”. The activity focused on two priorities: traffic safety and food safety, and more than 30 people
participation and whole-process control”. participated in the activity. As part of the food safety outreach, volunteers worked alongside market
regulation officials to inspect food establishments and conduct on-site spot checks for pesticide residues
in raw ingredients, helping safeguard food safety at the source. During the evening rush hour, volunteers
also served as traffic safety advocates, advising e-bike riders against unsafe practices such as riding
Metrics and Targets without helmets and travelling against traffic, while raising awareness of the risks associated with traffic
violations. Through this combination of Party building and volunteer service, the initiative helped channel
With the objectives of advancing hazard rectification, reducing work-related injuries, and enhancing the effectiveness corporate support into community safety governance.
of safety training, the Company has set annual occupational health and safety indicators and promoted the effective
implementation of various measures.
Metrics and Performance Related to Occupational Health and Safety of
JIANAN ELEC in 2025
Party Members Taking Part in Volunteer Service Activities
Number of work-related fatalities Rectification rate for safety hazards
The Company also thoroughly implements the national rural revitalization strategy by focusing on both talent and
recruitment of rural labour, and developing a zero-carbon factory, the Company has systematically supported villages in
the areas surrounding Cixi, giving back to local communities through concrete actions and contributing to coordinated
regional development.
Coverage rate of the three-tier pre-job Safety training rate for principal persons
safety training in charge Launching Rural Employee Training Programme
household registration, covering job skills, work safety, equipment maintenance and other content, with
a cumulative total of 600 training hours for the year. Among them, 57 employees passed and obtained
the Low-voltage Complete Set Inspector Certificate, 24 employees passed and obtained the IPC-A-610
Standard Certificate, and 9 employees passed the intermediate professional title evaluation and obtained
certificates.
JIANAN ELEC 2025 Sustainability Report Deepening Governance Effectiveness and Reinforcing the Compliance Baseline
Deepening Governance Effectiveness and
Reinforcing the Compliance Baseline
JIANAN ELEC closely monitors changes in the internal and external environment, as well as industry trends, strictly
complies with national laws and regulations, and continues to strengthen its practices in business ethics, fair Strategy
competition and compliance management. By improving its internal audit mechanisms, enhancing its accountability
system for violations, and deepening promotion and implementation of compliance culture, the Company has reinforced The Company systematically identifies the key impacts, potential risks and development opportunities relating to
employees’ awareness of integrity while consolidating its risk prevention and control system. Governance has corporate governance, and has formulated corresponding response strategies aimed at translating governance
advanced in a coordinated manner across multiple dimensions, laying a solid foundation for the Company’s sustainable strengths into management effectiveness and market competitiveness.
development.
Risks and Opportunities Related to Corporate Governance and Response Strategies of JIANAN ELEC
Corporate Governance
Time Horizon of
Risks and Opportunities Financial Impact Response Strategies
JIANAN ELEC upholds the philosophy of standardised operations and honest business conduct, and continuously Impacts
improves its modern corporate governance structure. The Board of Directors operates efficiently, maintains transparent
Risks
and high-quality information disclosure, and strengthens the foundation for development through scientific governance,
thereby safeguarding the Company’s high-quality development.
An incomplete governance
structure, non-standardised
Governance decision-making procedures, and Increase in
Operational Short to medium
ineffective implementation of compliance
risk term
internal controls may lead to poor costs
In accordance with the Securities Law of the People’s Republic of China, the Code of Corporate Governance for Listed decision-making and reduced •The Company strictly complies
Companies, the Measures for Administration of Information Disclosure of Listed Companies and other applicable operational efficiency. with regulatory requirements
laws, regulations and document requirements, the Company has formulated internal policies including the Articles of and implements standardised
operations, information
Association, the Rules of Procedure for the Shareholders’ Meeting and the Working Rules for Independent Directors, in
disclosure and investor
order to safeguard its sound operations. relations management to a high
Failure to report material matters
in a timely and complete manner standard.
Information Increase in
may lead to abnormal share price Short to medium •The Company ensures that
disclosure compliance
fluctuations, affect investor term decision-making procedures
risk costs
Corporate Governance Structure of JIANAN ELEC relations, or trigger regulatory are compliant and internal
enquiries. controls are effectively
executed. By continuously
optimising governance systems,
• As the highest authority of the Company, the Shareholders’ Meeting is strengthening the supervisory
Opportunities
Shareholders’ Meeting composed of all shareholders. It is responsible for reviewing major matters functions of independent
such as profit distribution, capital increases or reductions, and amendments directors, safeguarding the
to the Articles of Association. rights and interests of minority
Efficient and transparent shareholders, and implementing
communication can strengthen prudent cash dividends,
• As the Company’s decision-making body for business operations, the Board investor loyalty, reduce irrational the Company enhances its
of Directors is accountable to the Shareholders’ Meeting. It consists of 6 Investment fluctuations in the share price, and Medium to long Decrease in governance standards.
directors, including 1 employee representative director, and is headed by 1 opportunity create a favourable environment term financing costs
Board of Directors Chairman. The Board of Directors has established 4 specialised committees: for capital operations such as
the Audit Committee (with all 3 members being independent directors, refinancing and mergers and
exercising the functions formerly performed by the Supervisory Board); the acquisitions.
Strategy and Investment Committee; the Nomination Committee; and the
Remuneration and Appraisal Committee.
• As the executive team, Senior Management comprises the General Manager,
Senior Management Deputy General Managers, Chief Financial Officer and Board Secretary. All
Senior Management members are appointed by the Board of Directors and are
responsible for day-to-day production and operations.
JIANAN ELEC 2025 Sustainability Report Deepening Governance Effectiveness and Reinforcing the Compliance Baseline
Impacts, Risks, and Opportunities Management Metrics and Targets
With governance compliance, integrity and transparency, and becoming a listed company worthy of long-term trust as
The Company continuously deepens the philosophy of standardised operations and integrity in business conduct,
its core objectives, the Company continuously enhances governance effectiveness and market credibility, guided by
while steadily advancing key priorities such as institutional development, standardised operations, improvements in the
transparent information disclosure and a strong commitment to protecting investors’ rights and interests.
quality of information disclosure, and investor relations management, thereby further strengthening the foundation of
corporate governance.
JIANAN ELEC’s Major Actions and Achievements in Corporate Governance in 2025 Metrics and Performance Related to Corporate Governance of JIANAN
ELEC in 2025
Ongoing enhancement of the institutional system
• Revision of the Articles of Association and core governance policies: The Company revised 35 governance policies,
including the Articles of Association, the Rules of Procedure for the Shareholders’ Meeting and the Rules of Procedure for
the Board of Directors. These revisions included adding employee representative directors, and refining the functions and Number of shareholders’ Number of Board of Directors Number of Audit Committee
powers of the Audit Committee, thereby ensuring that the governance structure remains aligned with the latest regulatory meetings held meetings held meetings held
requirements.
Truthful and accurate information disclosure
• On-schedule report disclosures and announcement updates: In 2025, the Company disclosed its 2024 Annual Report
and its first-quarter, interim and third-quarter reports for 2025 on schedule, and issued a total of 121 announcements
during the year. All periodic reports were reviewed and approved by the Audit Committee before being submitted to
the Board of Directors for approval and disclosure, while all other announcements underwent the necessary review
procedures in accordance with applicable regulations, effectively safeguarding investors’ right to know. Number of Nomination Number of Remuneration and Number of results
• Strengthened quality control over financial information: The annual financial report was audited by an accounting Committee meetings held Appraisal Committee meetings held presentations held
firm that meets the requirements of the Securities Law of the People’s Republic of China. Periodic reports were subject
to a multi-level review mechanism comprising preparation by the Finance Department, review by the Audit Committee,
deliberation by the Board of Directors, and written confirmation by Directors and Senior Management, ensuring that the
data disclosed was true and accurate.
Deepened investor relations management
Number of investor research
• Establishment of a regular communication mechanism: In 2025, the Company held its annual results presentation,
activities conducted
during which the Senior Management team addressed investor questions. Throughout the year, the Company also hosted
more than ten site visits with institutional investors and analysts. All such engagements were conducted in accordance
with the required reception procedures and incorporated into a centralised institutional information database, ensuring
that the process remained fair, transparent and traceable.
More than 10
• Maintaining smooth online communication channels: The Company responded promptly to investor enquiries through
the irm.cninfo.com.cn platform, with an average response time of no more than two trading days. It also maintained a
dedicated “Investor Relations” section on its official website to centrally publish announcements, roadshow materials,
governance documents and other relevant information.
• Establishment of dedicated communication channels: The Company established a dedicated investor hotline and
email address, both managed by designated personnel responsible for accepting and responding to enquiries, thereby
protecting investors’ right to know in accordance with the law and ensuring smooth communication channels. For more details on the management of corporate governance topics, please refer to the section “Corporate Governance,
Environmental and Social” of the Ningbo Jianan Electronics Co., Ltd. 2025 Annual Report.
Shareholder returns and protection of shareholder rights and interests
• Protection of minority shareholders’ rights: For matters including related-party transactions and profit distribution,
the Company conducted separate vote counting for minority shareholders and disclosed the voting results. A dedicated
exchange session for minority shareholders was also arranged at Shareholders’ Meetings to respond to shareholder
questions on site.
• Optimisation of the profit distribution mechanism: In 2025, the Company implemented the 2024 annual profit
distribution plan. Based on a total share capital of 195,137,280 shares,it distributed a cash dividend of RMB4.5 (tax
inclusive) for every 10 shares held by all shareholders, with no capitalisation of reserves or bonus share issue. Total
cash dividends amounted to RMB87,811,776.00, representing 100% of the total profit distribution for the period, thereby
delivering tangible returns to investors.
JIANAN ELEC 2025 Sustainability Report Deepening Governance Effectiveness and Reinforcing the Compliance Baseline
Risk and Compliance Management
Impacts, Risks, and Opportunities Management
JIANAN ELEC adheres to the business principle that “compliance is the foundation and integrity is the cornerstone”,
regarding both as essential to the Company’s long-term development. By establishing and improving its compliance
governance structure, strengthening risk identification and management, and refining its internal disciplinary To effectively prevent compliance risks, the Company has established a full-process compliance management
mechanism, the Company has developed a systematic approach to compliance and risk management to ensure mechanism covering compliance communication and promotion, public opinion management and control, and insider
information management.
continued standardised and prudent operations.
JIANAN ELEC’s Major Actions and Achievements in Risk and Compliance Management in 2025
Governance
Compliance • The Company regularly conducted departmental briefings and special meetings,
The Company strictly complies with the Company Law of the People’s Republic of China, the Securities Law of the communication
People’s Republic of China and other applicable laws and regulations, while continuing to build and improve its risk and along with the communication of compliance systems and the dissemination of
and awareness
compliance governance system in line with relevant requirements such as the Basic Standard for Enterprise Internal enhancement risk knowledge.
Control.
Risk and Compliance Management Governance Structure of JIANAN ELEC in 2025 • The Company collected public opinion and media information.
Public opinion • The Company tracked changes in the trading prices of shares and derivatives.
Compliance Liaison Officers of Each
Board of Directors Board of Directors Office management
Department • Public opinion matters with a material impact on the Company were analysed and
mechanism
verified.
• Makes decisions on and • Coordinates specialised • Responsible for day-to-day
oversees major compliance compliance work such as fair compliance management within • Relevant information and the handling of such matters were promptly reported to
matters, and reviews compliance competition, anti-corruption, their respective departments, the Board Secretary and the Chairman.
management systems and and data compliance, and reporting risk information, and
major risk response plans. organises risk assessments, implementing corrective actions
inspections, and training. t o e n s u re t h a t c o m p l i a n c e
requirements are embedded in • Persons with access to insider information were registered, and the authenticity
frontline business operations. and accuracy of the information were verified.
Insider information
management • Heads of departments and subsidiaries are responsible for confidentiality
management and the reporting and transmission of information.
Strategy • The Board Office is responsible for daily management and serves as the executing
department.
Non-compliant conduct by any business unit or employee may expose the Company or the individuals concerned to
compliance risks, including regulatory penalties, legal disputes, business disruption, economic losses, reputational
damage, personal injury or death, or even criminal liability. To address these risks, the Company regularly identifies and
• Compliance risks were identified and assessed on a regular basis, and the risk list
dynamically manages compliance-related impacts, risks and opportunities, with a view to safeguarding the Company’s
Risk identification was updated dynamically.
sound reputation and stable operations. and contingency
planning • Risk response plans were formulated and refined, with responsible departments
Identification of Risks Related to Risk and Compliance Management and and handling procedures clearly defined.
Response Strategies of JIANAN ELEC
Time Horizon For different types of non-compliance, the Company has established a tiered accountability mechanism under which
Risks and Opportunities Financial Impact Response Strategies disciplinary action is determined fairly in light of the nature of the misconduct, the severity of its impact and the degree
of Impacts
of intent, so as to ensure that penalties are proportionate and appropriate. In cases involving the disclosure or trading
Public opinion Failure to respond promptly and Decrease in
• Conduct regular Company-level of insider information, matters of a less serious nature are subject to internal investigation and disciplinary action by
risk identification and formulate and the Company and reported to regulatory authorities for the record, while cases resulting in serious impact or losses are
management accurately to sudden negative Short term operating
update response strategies.
risk public opinion. revenue dealt with rigorously in accordance with policies, and suspected criminal offences are referred to the judicial authorities.
• Establish the Policy for the For information disclosure violations, less serious cases may result in criticism, warnings or demotion, while cases
Management System for Registration
causing serious impact or losses may lead to demotion, removal from office or dismissal. Directors who commit
of Persons with Access to Insider
Information, and strictly implement violations are subject to disciplinary measures depending on the circumstances, ranging from criticism and warnings to
The disclosure by informed
the registration and penalty proposals for replacement submitted to the Shareholders’ Meeting or the Employee Representative Congress.
persons of unpublished material
Short to Increase in mechanisms for persons with access
Insider trading operational, financial or M&A
medium operating to insider information.
risk information may result in such
term costs • Monitor public opinion trends in Metrics and Targets
information being used for insider
trading. real time, and ensure timely reporting
and response following analysis and
assessment. With "zero material compliance violations" as its core objective, the Company strengthens its compliance management
system through ongoing compliance communication and awareness-raising initiatives. In 2025, the Company had no
For other sustainability-related risks and opportunities, please refer to the relevant sections of this report. major violations of laws or regulations.
JIANAN ELEC 2025 Sustainability Report Deepening Governance Effectiveness and Reinforcing the Compliance Baseline
Anti-Commercial Bribery and Anti-Corruption Fair Competition
JIANAN ELEC adopts a “zero tolerance” approach to commercial bribery and corruption, and strictly complies with the Fair competition is the cornerstone of the healthy operation of the market and a safeguard for the sustainable
requirements of laws, regulations, and documents such as the Interim Provisions on Prohibiting Commercial Bribery, development of enterprises. The Company strictly complies with laws and regulations such as the Anti-Unfair
with the aim of comprehensively regulating its business conduct and reinforcing the safeguards that protect its Competition Law of the People’s Republic of China, and systematically advances fair competition efforts centered on
interests. two key directions: protecting innovations and regulating market conduct. On the one hand, the Company safeguards
its technological achievements and brand value through intellectual property protection, thereby strengthening its core
competitiveness; on the other hand, it prevents unfair competition practices such as commercial bribery and false
JIANAN ELEC’s Major Actions and Achievements in Anti-Commercial Bribery and advertising through responsible marketing management.
Anti-Corruption in 2025
Corruption risk • The Company established a dedicated procurement system, under which every procurement matter,
prevention and regardless of amount, requires approval by the General Manager, and records are automatically retained in the Intellectual Property The Company strictly complies with the Patent Law of the People’s Republic of
control system to ensure transparency in the use of funds. Protection China, the Trademark Law of the People’s Republic of China and other applicable
• All procurement projects were subject to quotations and quality comparisons from at least 3 suppliers to laws, regulations and regulatory requirements, and lawfully protects its core
ensure fair pricing and a compliant process. intellectual property rights, including patents, technical know-how and trade secrets,
• Each year, the Company conducts supervision and identification of bribery and corruption risks, carries out to ensure that its innovations are not infringed.
systematic risk assessments based on its anti-corruption policies and historical risk points, and dynamically
updates its risk list.
• The Audit Department performed both regular and special audits, with a focus on high-risk areas such as JIANAN ELEC’s Major Actions and Results in Intellectual Property Protection in 2025
financial receipts and expenditures, procurement procedures and contract performance.
• The Company organised regular anti-corruption training and integrity warning education sessions for Identification and Assessment and planning Application and maintenance
personnel in key positions such as procurement, sales and finance, in order to strengthen employees’ exploration
awareness of integrity in business conduct.
• Through internal technical • The Company conducted patentability • In collaboration with technical experts
seminars and patent analysis, assessments of identified key innovations, a n d p ro fe s s i o n a l i n s t i t u t i o n s , t h e
• The Company established five reporting channels: by letter, in person, online, by telephone and via WeChat. the Company accurately determined the appropriate form of Company carried out technical analysis
Reporting
identified key technologies protection, such as invention patents, and background research to ensure
channels • The Audit Department is responsible for investigating reports. Where bribery or corruption is identified, it
requiring priority protection. utility models or design patents, the quality of intellectual property
shall report the matter immediately to the Audit Committee, impose disciplinary measures on the personnel
and formulated filing strategies in applications for key new products and
concerned in accordance with the Company’s internal policies, circulate typical cases across the Company,
accordance with the GB/T 39551 Patent new business.
and carry out warning education to prevent similar issues from recurring.
navigation guide. •The Company also proactively monitored
• For general products and technologies, potential infringement of its intellectual
• Depending on the severity of the circumstances, recommendations for penalties such as warnings, demotion, the Company gave priority to publicly p ro p e r t y r i g h t s . W h e re s u s p e c t e d
Corrective available standardised or open-source infringement was identified, it gathered
and dismissal are proposed.
actions software, technologies and materials, e v i d e n c e t h ro u g h m e a s u r e s s u c h
• Where a crime is suspected, the case is transferred to the judicial authorities for criminal liability to be
and used keyword searches to analyse as purchasing product samples and
pursued in accordance with the law.
comparable products, thereby proactively collecting public documentation, and
• If an audit institution or audit personnel are involved, the Company will deal with the matter strictly in avoiding patent infringement risks. actively defended its intellectual property
accordance with internal rules, and any suspected criminal offence will likewise be referred to the judicial rights through legal channels.
authorities.
During the reporting period, the Company did not have any incidents of commercial bribery or corruption. The Company Responsible The Company strictly complies with the Advertising Law of the People’s Republic of China
will continue to keep reporting channels open and strengthen its integrity supervision mechanism. Marketing and other applicable laws and regulations, and has formulated internal policies such as the
Compliance Guidelines for Marketing Conduct and the Administrative Measures for Tendering
JIANAN ELEC Organised Special Training on Anti-Commercial Bribery and and Bidding to regulate its communication and promotional activities.
Anti-Corruption
In 2025, the Company conducted 2 special compliance inspections on marketing operations
In 2025, JIANAN ELEC continued to deepen its culture of integrity in the workplace. Through multi-level and organised 3 fair competition training sessions, achieving a training coverage rate of 100%
governance and communication platforms, including Board of Directors meetings, General Manager’s and continuously consolidating the foundation of marketing compliance.
Office Meeting and Employee Representative Congress, the Company systematically communicated its
anti-commercial bribery and anti-corruption requirements and, together with internal training materials on JIANAN ELEC’s Major Actions and Achievements in Responsible Marketing in 2025
anti-corruption and integrity, carried out warning education. During the year, the training covered a total of
• The Company carried out quarterly compliance risk assessments of its marketing
more than 50 participants, and the participation rate of Board members reached 100%. Risk
activities, with a focus on key processes such as tendering and bidding, channel
assessment
cooperation and client visits.
The training covered interpretation of policies, analysis of typical non-compliance cases, as well as legal
consequences and key prevention points in business scenarios such as bidding and tendering, channel
Internal • Regular special compliance inspections of marketing conduct were conducted across all
cooperation, and customer visits. Through Senior Management-led communication and warnings marketing regions, and any issues identified were required to be rectified within a specified
inspection
illustrated by cases, the Company strengthened the compliance awareness of all employees and promoted timeframe.
the integration of a culture of integrity into daily operations.
Training and • The Company organised fair competition training for all employees, covering all key
education positions in marketing, tendering and bidding, and related functions.
JIANAN ELEC 2025 Sustainability Report ESG Data Tables and Notes
ESG Data Tables and Notes
Environmental Data Table Energy and Water Resources Utilization
Disclosures Unit 2025
Comprehensive energy consumption1 tce 578.40
Environmental Compliance Management
Comprehensive energy consumption intensity (per unit of
tce/RMB10,000 0.0091
operating revenue)
Disclosures Unit 2025 Direct energy consumption1,2 tce 38.85
Number of incidents of penalties imposed for violations of Indirect energy consumption1,2 tce 539.55
cases 0
environmental protection laws and regulations
Amount of major administrative penalties imposed by Electricity consumption MWh 4,387.01
ecological and environmental and other relevant authorities
RMB10,000 0.00 By electricity type:
in relation to environmental incidents during the reporting
period
Purchased renewable electricity consumption3 MWh 782.57
Purchased non-renewable electricity consumption MWh 3,604.44
Cliamte Response
Purchased Green Electricity Certificates4 MWh 2,463
Petrol consumption of official vehicles L 19,443.25
Disclosures Unit 2025
Diesel consumption of official vehicles L 3,821.37
Scope 1 greenhouse gas emissions1 tCO2e 74.28
Scope 2 greenhouse gas emissions (location-based)2 tCO2e 2,327.75 Natural gas consumption m? 9,733.00
Scope 2 greenhouse gas emissions (market-based)1 tCO2e 695.82 Clean energy consumption5 tce 412.11
Total greenhouse gas emissions (Scope 1 + Scope 2) Percentage of clean energy consumption in comprehensive
tCO2e 2,402.03 % 71.25
(location-based)1,2 energy consumption
Total greenhouse gas emissions (Scope 1 + Scope 2)
tCO2e 770.10 Water consumption6 m? 27,278.00
(market-based)1,2
Greenhouse gas emissions intensity (Scope 1 + Scope 2) Water consumption intensity (per unit of operating revenue) m?/RMB10,000 0.43
tCO2e/RMB10,000 0.038
(per unit of operating revenue) (location-based)
Water recycling volume tonnes 30
Greenhouse gas emissions intensity (Scope 1 + Scope 2)
tCO2e/RMB10,000 0.012
(per unit of operating revenue) (market-based)
Note 1: The unit conversion factors for comprehensive energy consumption, direct energy consumption and indirect energy
consumption were calculated with reference to GB/T 2589–2020 General Rules for Calculation of the Comprehensive Energy
Consumption, the China Energy Statistical Yearbook (2023), the US DOE/EIA, GB 17930-2016 Gasoline for Motor Vehicles and GB
Note 1: Scope 1 greenhouse gas emissions mainly comprise direct greenhouse gas emissions generated from the consumption of 19147-2016 Automobile Diesel Fuels.
natural gas, petrol and diesel. The relevant emission factors used in the calculation were all sourced from China Energy Statistical Note 2: The Company’s direct energy consumption mainly includes petrol for official vehicles, diesel for official vehicles and natural
Yearbook (2023) and Guidelines for the Preparation of Provincial Greenhouse Gas Inventories (Trial) (2011). gas. Indirect energy consumption primarily consists of purchased electricity.
Note 2: Scope 2 greenhouse gas emissions mainly comprise indirect greenhouse gas emissions generated from purchased electricity. Note 3: The rooftop photovoltaic power station at the Company’s plant has been connected to the grid. However, all the electricity
The relevant emission factor used in the calculation were sourced from the Announcement on the Release of 2023 Electricity Carbon generated by the station is externally consumed off-site under a power purchase agreement. The green electricity used by the
Dioxide Emission Factors issued by the Ministry of Ecology and Environment of the People’s Republic of China and the National Bureau Company itself is actually entirely sourced from external procurement, thereby increasing the proportion of renewable energy used.
of Statistics of China, as well as the Notice on Adjusting the Method for Accounting for Carbon Emissions from Purchased Green
Electricity by Carbon Trading Enterprises in This City (2023). Note 4: In 2025, the Company purchased a total of 2,463 Green Electricity Certificates, each representing 1 MWh of green electricity.
These certificates were applied to offset electricity consumption for the period from January 1, 2025 to December 31, 2025
Note 5: The clean energy used by the Company mainly includes natural gas, purchased renewable energy, and the green electricity
corresponding to the Green Electricity Certificates purchased.
Note 6: The Company’s water consumption covers municipal water supply consumption only.
JIANAN ELEC 2025 Sustainability Report ESG Data Tables and Notes
Pollutant Discharge and Waste Disposal Innovation
Disclosures Unit 2025 Disclosures Unit 2025
Domestic wastewater discharge1 m? 24,550.20 Number of R&D personnel persons 145
Percentage of R&D personnel % 27.83
Total waste generated2 tonnes 75.56
R&D expenditure RMB10,000 4656.43
Total hazardous waste generated tonnes 1.76
R&D expenditure as a percentage of revenue from the
Hazardous waste intensity (per unit of operating revenue) tonnes/RMB10,000 0.000028 % 7.30
principal business
Total non-hazardous waste generated tonnes 73.80 Number of invention patents applied in the principal
/ 41
business
Non-hazardous waste intensity (per unit of operating
tonnes/RMB10,000 0.0012
revenue) Number of invention patent applications during the reporting
/ 6
period
Waste recycled3 tonnes 15
Number of invention patents granted during the reporting
/ 5
period
Note 1: The Company’s wastewater mainly comprises domestic wastewater. In line with the charging method commonly adopted for
water services in many cities, domestic wastewater discharge was estimated at 90% of water consumption. A small amount of waste Number of valid patents at the endof the reporting period / 101
arising from machine wiping was treated as hazardous waste and therefore did not result in industrial wastewater.
Note 2: The Company’s non-hazardous waste mainly includes paper, plastics and office consumables generated in office operations, Number of valid software copyright registrations at the end
/ 78
as well as general industrial solid waste generated in production, such as waste tape materials from the SMT process, waste metal of the reporting period
shavings and solder dross. Hazardous waste includes waste batteries, waste lamps and waste ink cartridges generated in office
operations, as well as waste chemical raw materials and empty waste container generated in production.
Note 3: Waste recycled mainly includes oily cloth and paper, cleanroom wipes and stencil wiping paper. Employee Employment and Training
Disclosures Unit 2025
Social Data Table
Total number of employees persons 521
By gender:
Product and Service Safety and Quality
Male employees persons 290
Female employees persons 231
Disclosures Unit 2025
By age:
Amount of damage arising from major liability incidents
related to product and service safety and quality that RMB10,000 0.00 Employees aged under 30 persons 153
occurred during the reporting period
Employees aged 30 to 50 persons 317
Employees aged above 50 persons 51
Total number of management employees persons 25
By gender:
Data Security and Customer Privacy Male management employees persons 22
Female management employees persons 3
Disclosures Unit 2025 Total expenditure on employee training RMB10,000 43
Amount involved in data security incidents RMB10,000 0.00 Number of employee training sessions sessions 65
Amount involved in customer privacy breach incidents RMB10,000 0.00 Employee training coverage rate % 100.00
JIANAN ELEC 2025 Sustainability Report ESG Data Tables and Notes
Occupational Health and Safety Economic and Governance Data Table
Disclosures Unit 2025
Anti-Commercial Bribery and Anti-Corruption
Expenditure on employees’ work-related injury insurance RMB10,000 12.37
Employee coverage rate for work-related injury insurance1 % 93.86
Disclosures Unit 2025
Number of employees covered by employer liability
persons 45
insurance for work safety2 Number of employees receiving anti-commercial bribery and
persons 521
anti-corruption training
Expenditure on employer liability insurance for work safety RMB10,000 0.57
Percentage of employees covered by anti-commercial
Employee coverage rate for employer liability insurance for % 100.00
% 8.64 bribery and anti-corruption training
work safety
Number of directors receiving anti-commercial bribery and
Total number of work-related injuries3 cases 3 persons 6
anti-corruption training
Note 1:As the Company employs certain retired personnel on a re-engagement basis, and those employees chose not to participate in Percentage of directors covered by anti-commercial bribery
% 100.00
work-related injury insurance following consultation, such insurance does not cover all employees. and anti-corruption training
Note 2: Pursuant to the Measures for the Implementation of Employer Liability Insurance for Work Safety (Y.J. [2025] No. 27), the Number of management employees receiving anti-
industry in which the Company operates does not fall within the scope of mandatory coverage. Based on risk management needs, the persons 25
commercial bribery and anti-corruption training
Company voluntarily purchased employer liability insurance for work safety for 45 employees engaged in high-risk positions in order
to strengthen protection for key roles. Percentage of management employees covered by anti-
% 100.00
Note 3: According to the Regulations on Work-Related Injury Insurance, a traffic accident that occurs during commuting and for commercial bribery and anti-corruption training
which the employee is not primarily at fault can be recognised as a work-related injury. The three work-related injuries recorded by
the Company during the reporting period all fell under this category. The Company will strengthen commuting safety awareness
campaigns and training to continuously enhance employee safety awareness.
Rural Revitalization and Social Contributions
Fair Competition
Disclosures Unit 2025
Disclosures Unit 2025
Expenditure on rural revitalization and charitable donations1 RMB10,000 19
Number of beneficiaries of rural revitalization and charitable Amount involved in litigation or major administrative
persons 237 penalties arising from the Company’s unfair competition RMB10,000 0.00
initiatives2
practices during the reporting period
Volunteer service participations by employees participations 15
Duration of volunteer activities conducted hours 25
Note 1: Of the Company’s expenditure on rural revitalization and charitable donations, RMB100,000 was donated to the Cixi General
Institution of Charity, and RMB90,000 was used for targeted support to Tanhe Village and Cangtian Village, demonstrating the
Company’s commitment to charitable causes and rural development through concrete actions.
Note 2: The number of beneficiaries of rural revitalization and public welfare/charitable initiatives is an estimate made by the Company.
JIANAN ELEC 2025 Sustainability Report Cross-reference Index
Cross-reference Index
Index to the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—
Sustainability Report (For Trial Implementation)
Dimension Topic Corresponding Section(s) of this Report/Other Notes Dimension Topic Corresponding Section(s) of this Report/Other Notes
Climate Response The Company does not engage in scientific research, technology
Climate response Ethics of science and technology development or other activities in science and technology ethics-
ESG Data Tables and Notes
sensitive fields such as life sciences or artificial intelligence.
Pollutant Discharge Supply Chain Security and Sustainable Management
Pollutant discharge Supply chain security
ESG Data Tables and Notes ESG Data Tables and Notes
Equal treatment of SMEs Supply Chain Security and Sustainable Management
Waste Disposal
Waste disposal Community
ESG Data Tables and Notes Data security and customer privacy Data Security and Customer Privacy
Ecosystem and biodiversity protection Ecosystem and Biodiversity Protection Employees
Environment
Employees Occupational Health and Safety
Environmental Compliance Management
Environmental compliance management ESG Data Tables and Notes
ESG Data Tables and Notes
Energy Utilization Product and Service Safety and Quality
Energy utilization Product and service safety and quality
ESG Data Tables and Notes ESG Data Tables and Notes
Water Resources Utilization Materiality Assessment: Due Diligence and Stakeholder
Water resources utilization Due diligence
ESG Data Tables and Notes Engagement
Circular Economy Materiality Assessment: Due Diligence and Stakeholder
Circular economy Stakeholder engagement
ESG Data Tables and Notes Sustainability- Engagement
related
Social Contributions and Rural Revitalization governance Anti-Commercial Bribery and Anti-Corruption
Rural revitalization Anti-commercial bribery and anti-corruption
ESG Data Tables and Notes ESG Data Tables and Notes
Social Contributions and Rural Revitalization Fair Competition
Community Social contributions Fair competition
ESG Data Tables and Notes ESG Data Tables and Notes
Innovation Corporate governance Corporate Governance
Innovation
ESG Data Tables and Notes
Voluntarily Risk and compliance management Risk and Compliance Management
disclosed topics
Raw materials and packaging materials
Raw Materials and Packaging Materials Management
management
JIANAN ELEC 2025 Sustainability Report Assurance Statement
CONCLUSIONS
ASSURANCE STATEMENT
Upon completion of our assurance, we have determined that this report is in accordance with the AA1000AS v3. The
data disclosed for the year 2025 is deemed accurate and reliable, with no significant systematic or material issues
identified. Stakeholders can confidently rely on this information.
The specific conclusions are outlined below:
To The Management and Stakeholders of Ningbo Jianan Electronics Co., Ltd.
Jianan Electronics takes as its core philosophy: "To create opportunities for customers,
Leverage Limited (referred to as "LVG") was engaged by Ningbo Jianan Electronics Co., Ltd. (referred to as "Jianan employees, shareholders, and society to realise their aspirations through technology and
Electronics" "the Company" ) to provide limited and independent third-party assurance for the Sustainability Report quality." The Company is committed to achieving the coordinated development of business
("the Report") with the reporting period of 1 January to 31 December, 2025. The LVG assurance team strictly adhered operations with the economy, environment, and society, fostering mutual benefit and
Inclusivity
to the terms outlined in the contract with Jianan Electronics and conducted the assurance work in accordance with the harmonious progress with its stakeholders, and pursuing a healthy and sustainable development
mutually agreed terms of reference. path through responsible commitment. The stakeholders of Jianan Electronics include
shareholders and investors, government and regulatory authorities, customers, employees,
This assurance statement is based on information and materials provided by Jianan Electronics, and the scope is limited
suppliers and partners, as well as the community and the public.
to the content of this information. Jianan Electronics is responsible for the authenticity and completeness of the data
provided. Jianan Electronics has set out in the report the process for identifying double materiality topics,
including understanding the company's sustainable development context, establishing a topic
SCOPE OF THE ASSURANCE list and identifying sustainability?related impacts, risks and opportunities, assessing the double
materiality of topics, and topic reporting and management. Through a combination of
Materiality
The time scope of the assurance： benchmarking against standards, policy analysis, and industry comparative research, the
p The scope of our work covers the information contained in the full version of the Sustainability Report, including Company conducts an in ? depth analysis and assessment of risks and opportunities related to
governance, environmental, and social information and data for the reporting period of 1 January to 31 December, ESG topics, demonstrating its capability to manage such ESG?related risks and opportunities,
performance indicators during the reporting period. The Company is committed to establishing a regular communication mechanism. Through
The physical scope of the assurance: regular or ad?hoc exchanges, it coordinates with relevant departments to conduct due diligence
by means such as interviews and panel discussions, gaining an in ? depth understanding of
p The site selected for on-site verification is No. 315, Kaiyuan Road, Cixi, Zhejiang. Responsiveness stakeholder concerns, listening to feedback, suggestions, and opinions from stakeholders,
The data and information scope of the assurance： actively responding to stakeholder demands and expectations, continuously improving
management practices and making adjustments and optimisations, and promoting the stable
p The scope of assurance is limited to the data and information of the business/production sites owned or operation of the Company.
operationally controlled by Jianan Electronics in the Report.
The Company integrates ESG principles into the entire process of its corporate strategic
The following information and data are not within the scope of this assurance： development and daily operations. By establishing and continuously improving a sustainable
p Any information and content outside the reporting period of the report. development governance structure featuring clearly defined roles and responsibilities as well as
p The data and information of Jianan Electronics' suppliers, partners, and other third parties. Impact efficient operation, it clarifies the division of duties among the decision ? making level,
p The information disclosed in the report that has been audited by an independent third-party organization. management level, and executive level. Through a transparent accountability mechanism and
the comprehensive implementation of its strategy, the Company strengthens the foundation of
its sustainable development governance.
LIMITATION OF ASSURANCE
p Given the fact that there is no general framework for the evaluation and measurement of non-financial data, the
varied methodologies might impact the comparability of such data among different companies.
p During the assurance process, Leverage Limited has utilized a sampling approach to verify the data and information STATEMENT OF INDEPENDENCE AND COMPETENCE
presented within the report.
p Engagement (Interview) with stakeholders within the organization has been conducted solely on a sampling basis. Leverage Limited is an international third-party company, committing to providing services with attitudes of integrity,
p The position and views of the reporting organization, forward-looking statements, predictive information and transparency, and accountability. Our services include training, inspection, certification, audit, and report assurance.
historical data and information prior to 1 January 2025 are outside the scope of this assurance. Leverage is the professional organization approved by the General Administration of China Customs, the ISO 17020
accredited inspection body by CNAS, and the certification body licensed by CNCA, SA8000 certification body
ASSURANCE METHODOLOGY accredited by SAI, and AA1000AS licensed assurance service provider. Leverage has established a comprehensive
management system to ensure that all project implementation processes are rigorous and transparent.
The assurance process for this verification was conducted by a team of experts at Leverage Limited with multiple
experience in governance, environmental, and social topics, among other relevant areas, to draw conclusions. The
Leverage affirm our independence from Jianan Electronics, being free from bias and conflicts of interest with the
assurance referenced the following standards and criteria:
organization, its subsidiaries and stakeholders. The assurance team was formed based on their knowledge, experience
p The assurance was conducted in accordance with AA1000AS v3, Type 2, Moderate Level and qualifications for this assignment, they have no business relationship with the company. All data and information
p Self-Regulatory Guidelines No.17 for Companies Listed on Shenzhen Stock Exchange–Sustainable Development in the report were provided by Jianan Electronics, and Leverage Limited was not involved in the preparation and
Report (Trial) writing of the report, except for conducting the verification and issuing the assurance statement.
To ensure thorough assurance activities in accordance with the contract and to provide limited assurance for the
conclusions, the assurance team primarily conducted the following assurance activities: Team Leader Authority
p Conducted initial research activities on relevant information before assurance work starts. Signed: Signed:
p Ensured that material issues and performance have been adequately presented in the report.
p Conduct on-site assurance of all supporting documents, data, and other information provided by Jianan Electronics,
and perform sampling assurance for key performance indicator data. Leverage Limited
p Interviews with Jianan Electronics's management and employees involved in the collection, collation, and reporting Shanghai, China
of disclosure information. 16 April, 2026
p Other procedures deemed necessary by the assurance team.
Stock Code: 300800.SZ
Ningbo Jianan Electronics Co., LIMITED
Address: 315 Kaiyuan Road, Cixi City, Zhejiang Province
Postcode: 315336
Tel: 0574-63080571
Fax: 0574-63080569
Email: ir@nbjnzn.com
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