Contents
Flowing with Unified in Powered by
Green Circularity Perfect Harmony Infinite Innovation
Climate Change Response 16 Protection of Employee 40 Safety and Quality of 59
Rights and Benefits Products and Services
Pollutant Emissions 23 Employee Recruitment and 42 Digital Transformation 62
Waste Management 25 Development
About This Report 01 AI-enabled Quality 66
Ecosystem and Biodiversity 28 Employee Well-being 47 Empowerment
Protection and Care
Message from the Chairman 03 Technological Innovation 69
Environmental Compliance 28 Occupational Health and 50
Management Safety
About Shuanghuan 05
Energy Use 29 Rural Revitalisation 52
Water Resource Utilisation
Social Public Welfare 54
Sustainability Governance 08 35
Circular Economy 36
Symbiotic Synergy 5
Rooted in Steady
Governance
Key Sustainability 89
Performance Table
Supply Chain Security Due Diligence and Risk
and Sustainability Management GRI Content Index 92
Data and Information 78 Compliance Management 83
Security
Anti-commercial Bribery 84 Assurance Statement 98
Customer Privacy 80 and Anti-corruption
Protection
Anti-unfair Competition 88
Sustainability Report About This Report
About This Report
This report is the fourth consecutive sustainability report published by Zhejiang Shuanghuan
Reference
Driveline Co., Ltd. (Stock Code: 002472) (hereinafter referred to as “this report”). It systematically
presents our management practices and phased progress in the environmental, social, and
For clarity and readability, the following abbreviations are used:
governance (ESG) field.
Company/Site Reference
Reporting Scope “Shuanghuan Driveline”,
Zhejiang Shuanghuan Driveline Co., Ltd. “Shuanghuan”,“Company”,
“We”“Group”,“Group headquarters”
Unless otherwise stated, the reporting scope is consistent with that of 2025 Shuanghuan Zhejiang Shuanghuan Driveline Co., Ltd. – Zhejiang
“Zhejiang Shuanghuan”
Driveline Annual Report, covering Zhejiang Shuanghuan Driveline Co., Ltd. and its subsidiaries. For Shuanghuan
details on the entities referred to, please see the “Reference” section.
Jiangsu Shuanghuan Gear Co., Ltd. “Jiangsu Shuanghuan”
Shuanghuan Gear (Jiaxing) Precision Manufacturing Co., Ltd. “Jiaxing Shuanghuan”
Shuanghuan Driveline (Chongqing) Precision Technology
Reporting Period Co., Ltd.
“Chongqing Shuanghuan”
Zhejiang Shuanghuan Supply Chain Co., Ltd. “Shuanghuan Supply Chain”
This report covers information from 1 January 2025, to 31 December 2025. To ensure the
completeness of the information presented, certain data may extend beyond this reporting period, Zhejiang Huanyi Technology Co., Ltd. “HuanYi Technology”
in which case specific explanations are provided.
Zhejiang Fine Intelligent Technology Co., Ltd. “Fine Intelligent Technology”
Zhejiang Fine Motion Robot Joint Technology Co., Ltd. “Fine Motion Technology”
Basis for Preparation
Zhejiang Fundrive Technology Co., Ltd. “Fundrive Technology”
This report has been prepared in accordance with the Shenzhen Stock Exchange Guideline No.
Jiangsu Huanou Intelligent Transmission Equipment Co., Ltd. “Jiangsu Huanou”
the Shenzhen Stock Exchange Guide No. 3 on Self-Regulation of Listed Companies - Preparation of Huanyan DriveTech (Jiaxing) Research Institute Co., Ltd.
“Shuanghuan Research”, “Huanyan
Driveline”
Sustainability Report (referred to as the “Guide”), Enterprise Sustainable Disclosure Standards -
Basic Standards (Trial) issued by the Ministry of Finance and eight other departments and with Dalian Huanchuang Precision Manufacturing Co., Ltd. “Dalian Huanchuang”
reference to the United Nations Sustainable Development Goals (UN SDGs), the GRI Standards
issued by the Global Sustainability Standards Board (GSSB) (referred to as the “GRI Standards”). Evoring Precision Manufacturing Kft. “Evoring”
Sustainability Report About This Report
Reliability Assurance and Approval
Report Access and Response
In order to fully respond to stakeholders’ expectations regarding the Company’s
sustainability and the quality of information disclosure, this report has been This report is available in both Chinese and English. In the event of any discrepancies
independently verified by Hangzhou WIT Assessment Co., Ltd. in accordance with the between the Chinese and English versions, the Chinese version shall prevail. The
AA1000 Assurance Standard. For details, please refer to “Assurance Statement”. electronic version of this report is published on the CNINFO website and the Company’s
official website.
This report was approved by the Board of Directors on 22 April 2026 after confirmation
by the Management. We attach great importance to the views and suggestions of our stakeholders. Readers
are welcome to contact us by email at shdmb@gearsnet.com, and please state
Sustainability Report 2025 in the subject line, so as to provide valuable feedback on
the contents of this report and help the Company continuously improve sustainability
management and information disclosure.
Sustainability Report Message from the Chairman
Message from the Chairman
The world today is witnessing surging waves of industrial transformation and profound adjustments in the global landscape. In
this complex environment where opportunities and challenges coexist, as a leader in the global professional gear component
manufacturing sector, Shuanghuan remains committed to focusing on its core business, cultivating real economy, and steadily
advancing a concentric diversification strategy centred on gears. In 2025, all Shuanghuan employees rose to the challenge with
determination and diligence, delivering steady growth in operating performance and consolidating our market leadership in core
fields such as new energy vehicle gears and industrial robot reducers. Nearly 60% of our sales come from Fortune Global 500
customers, continuously providing precise and reliable “Shuanghuan solutions” for the efficient operation of global industrial chains.
Behind this lies the strong support and trust of our customers, employees, shareholders, and all partners. On behalf of the Board of
Directors, I would like to extend my sincerest gratitude to you all.
In 2025, we made sustainable development a core strategy, systematically integrating it into every aspect of our operations.
Centered on five pillars—Environment, Innovation, Talent, Partnerships and Governance—we strengthened Shuanghuan’s resilience
for sustainable development.
Fulfilling Environmental Responsibility, Driving Long-Term Development through Green Manufacturing.
We firmly believe that business growth must go hand in hand with environmental sustainability. We deeply practice green and low-
carbon concepts, striving to integrate “sustainability” into the entire value chain from design and manufacturing to operations. We
have established an ISO 50001 energy management system and built an intelligent energy management platform integrating data
collection, monitoring and analysis, enabling refined management of key energy resources such as water, electricity and gas. In
while carbon emission intensity per unit of value added continued to decline. Meanwhile, we have actively deployed distributed
photovoltaics across the multiple production bases nationwide, with a cumulative installed capacity of 28.148 MWp, turning the
sunlight into the clean productive power through concrete action.
Stimulating Innovation Vitality, Building Core Competitive Strength with Intelligence and Quality.
Innovation is the powerful engine behind Shuanghuan’s sustained growth. In 2025, R&D investment reached RMB 491 million,
accounting for 5.38% of revenue from our principal operations. While continuing to focus on breakthroughs in precision transmission
technology, we have also used intelligent technologies as a lever to fundamentally transform our quality management model and
build a formidable “quality moat”. We have deeply integrated AI technology into every link of gear manufacturing. By building a
“1+2+3+N” AI application architecture, we have successfully deployed more than 20 typical AI applications. “Quality Engineer AI
Assistant” and “Gear Appearance AI Visual Defect Recognition System” have enabled our quality control system to achieve a
fundamental shift from “after-the-fact traceability” to “pre-event prevention”. Relying on our self-developed QMS and full life-cycle
traceability system based on “one code for one item”, we give each gear a unique “digital ID” from the source, ensuring that every
step from the raw material to the finished products is controllable and traceable, and improving quality traceability efficiency from
Zhejiang Shuanghuan Driveline Co., Ltd. several hours to just minutes. Our benchmark factory, recognised as a National Excellent Smart Factory, together with the “lean-driven,
Chairman digitally empowered” solutions provided by our subsidiary Fine Intelligent Technology, is contributing Shuanghuan’s expertise to the
digital transformation of the industry.
Sustainability Report Message from the Chairman
Nurturing Talent, Strengthening Organisational Cohesion with Human- Centred Care. Upholding Sound Governance, Safeguarding Stable Operations with Compliance and
Integrity.
Shuanghuan always adheres to a “human-centred” philosophy, placing talent-development
and employee-care at the strategic core. The Company has established a comprehensive Compliance and integrity are the fundamental safeguards for the Company’s long-term
“Cloud Academy” and tiered training system, continuously investing resources to and steady development. We have always regarded standardised, transparent and honest
cultivate versatile talents who “understand technology and excel in management”. We are corporate governance as our lifeline. We have established a sound governance structure
particularly proud that 87.6% of our production management cadres have been promoted and built a clearly defined ESG governance working mechanism. In daily operations,
internally from technical worker roles – a clear testament to our commitment to providing clear we continue to strengthen internal controls and risk management systems, embedding
career advancement paths for our employees. We place equal emphasis on both material and compliant operations and self-discipline into the very fabric of our corporate culture. We
non-material incentives, actively promoting the corporate spirit of “One team, one passion, maintain a zero-tolerance approach to corruption in any form. In 2025, we achieved 100%
for life”, while embedding the five core qualities of innovation, professionalism, dedication, coverage of anti-bribery training for both employees and directors.
efficiency and integrity into daily work. To help employees balance work and life, we have
continued to offer the “Huanhuan Class” childcare service, seeking to relieve employees of
practical concerns. Thanks to these efforts, our employee satisfaction reached 84 points in Standing at the forefront of the global precision transmission industry, Shuanghuan fully
will focus more on quality, technology, efficiency, and sustainability. We will continue to
Empowering the Industrial Ecosystem, Building A Resilient Future with Shared
uphold our core value proposition of “Better Every Time, Always”, and firmly implement
Responsibility.
our strategic path of “rely on equipment in the short term, on R&D in the medium term,
We extend the responsibility of sustainable development to the entire supply chain, and on culture in the long term”, with “AI-empowered comprehensive innovation” as a key
committed to building a safe, reliable, transparent, and green industrial ecosystem. In 2025, driver to continuously enhance our overall capabilities in technology, quality, cost, delivery
we achieved a 100% signing rate for supplier agreements relating to “sunshine integrity”, and green development (TQCDG). With the release of this Sustainability Report, we will
clarifying the value baseline of cooperation. We not only hold ourselves to high standards, conduct a systematic review of ourselves and actively respond to the expectations of all
but also actively transmit requirements relating to green, low-carbon and compliant stakeholders. In 2026, we will focus on our core precision transmission business, deepen
management to our supply chain partners, promoting collective quality improvement and our global presence, and strive to create value for customers, provide opportunities for
collaborative decarbonisation across the value chain. This value of co-creation, bound by employees, generate returns for shareholders, and fulfil our responsibilities to society. We
responsibility, driven by innovation, and aimed at win-win, enables us to respond to market are willing to work with our global partners, with the toughness of fine steel, to carve out the
changes more closely and collaboratively, enhancing the resilience and competitiveness of future precision of the modern industry within the smallest margins, and through integrated
the overall industrial chain, thus moving forward hand in hand in a changing environment. innovation, to transmit the powerful voice of Intelligent Manufacturing in China.
Sustainability Report About Shuanghuan
About Shuanghuan
Company Profile
Zhejiang Shuanghuan Driveline Co., Ltd. (Stock Code: 002472) is a leading global transmission systems, power drive systems for new energy vehicles, transmission devices for off-
manufacturer of gear components, dedicated to our vision—“Drive the transition in the road machinery (including construction and agricultural machinery), intelligent mobility transmission
gear industry to be the global leader in precision drivelines”. We provide high-speed, devices, intelligent home transmission devices, as well as drive and transmission application
low-noise, safe, and sustainable products for global mechanical transmission systems. scenarios across multiple industries such as rail transit, wind power generation, electric tools, and
robotics automation.
Cultivate our core business with dedication, forge ahead with perseverance,
and firmly pursue a diversified development strategy with one heart and one The Company has always upheld the core values of “Better every time, always”. We will remain
mind. For more than 40 years, the Company has been focusing on the R&D, committed to providing outstanding solutions for global mechanical transmission systems, achieving
manufacturing, and sales of gears and their components, which are the core greater impact with smaller inputs, creating excellence through precision, and using small gears to
components of mechanical transmission. Shuanghuan Driveline’s management drive a big world, as we strive to move towards becoming one of the world’s top 100 components
headquarters is located in Hangzhou. It oversees more than 10 subsidiaries and enterprises.
member companies, including Zhejiang Shuanghuan, Jiangsu Shuanghuan, Jiaxing
Shuanghuan, Chongqing Shuanghuan, Dalian Huanchuang, Shuanghuan Supply A Global Leader
A National Leader A National Leader in
Chain, Fine Intelligent Technology, Fine Motion Technology, Fundrive Technology, in Professional
in NEV Gear Industrial Robot Reducer
Gear Components
Jiangsu Huanou, Shuanghuan Research, Huanyi Technology, and Evoring. Manufacturing Manufacturing
Manufacturing
Shuanghuan Driveline has become a group company spanning three countries:
China, Hungary, and Vietnam. Our principal application areas cover automotive
Operations
spanning 14subsidiaries/ Production
capacity exceeding
Over 8,900 software copyright,
contributor to
manufacturing
employees in the
bases 12 billion group 20 + national/
industry standards
Sustainability Report About Shuanghuan
History
Subsidiary Fundrive Technology was established, and 100%
equity of SAN-TOHNO Intelligent Transmission was acquired,
The predecessor of Shuanghuan marking the Company’s entry into the intelligent actuators. In
Driveline, Qingma Township Light Shuanghuan Driveline was successfully Shuanghuan acquired Chongqing the same year, Jiangsu Huanou was founded, advancing R&D
Chemical and Electromechanical Plant listed on the Shenzhen Stock Exchange, Shuanghuan (the original name was and manufacturing of industrial gearboxes.
was founded—marking the beginning becoming the first gear manufacturer to Chongqing Shenjian), which opened a
of a dream where small gears drive a go public on the A-share market. new chapter of southwest strategy.
big world.
Dalian Huanchuang was
PHONG) Transmission Technology Science
Company Limited in Vietnam, expanding overseas
The Company underwent collective established to create a localised business in livelihood gears. Hungarian subsidiary
headquarters was established to supply base for customers. Evoring was founded to reach the European
restructuring and was renamed
enhance strategic planning and market. In the same year, Huanyi
Zhejiang Shuanghuan Gear Co., Ltd.
attract talent. Technology was established.
Subsidiary Shuanghuan Supply
Chain was founded. The subsidiary Fine Motion Technology
was established, which represented that
Shuanghuan had developed in-depth
The Shuanghuan Research building was completed
research and manufacturing of industrial
and put into operation. The factory of Hungarian
Subsidiary Jiangsu Shuanghuan robot reducers and contributed to the
subsidiary Evoring successfully topped out.
was established. localisation of industrial robot reducers.
Subsidiary Jiaxing Shuang-
huan was established,
intelligent manufacturing.
The new plant of Hungarian subsidiary Evoring was
The Company completed its Shuanghuan Research was
officially delivered and is now able to provide
shareholding reform and officially established to explore cutting-edge
services to a wide range of customers; Sub-subsidi-
became Zhejiang Shuanghuan gear technology and offer optimal
ary Huihuan Transmission was jointly established by
Driveline Co., Ltd. solutions. In the same year, Fine
Goldwind Huineng, a wholly owned subsidiary of
Intelligent Technology was founded to
Goldwind Technology, and Jiangsu Huanou, a
facilitate digital transformation across
controlling subsidiary of Shuanghuan Driveline, and
the Company and its industry chain.
the two parties will join hands to deepen their
presence in the wind power gearbox repair sector.
Sustainability Report About Shuanghuan
ESG Honours
Zhejiang Provincial 2025 Zhejiang
First Prize of the Province Pilot
Benchmark 2025 Zhejiang 2025 Provincial
Chongqing Science Enterprise for the
Enterprises for Merchants National Advanced Smart
and Technology Establishment of a
Artificial Intelligence Top 500 Enterprises
Progress Award
Applications in 2025 Chief Data Officer Factory *
System
National Key “Little
Excellent-Level Enterprises in China’s Collective of Industry Control Award for
Automotive Supply and Information Sophisticated, Zhejiang Listed
Smart Factory Distinctive and
Chain Technology System Companies
Innovative Features
*Awarded Site：Zhejiang Shuanghuan, Jiaxing Shuanghuan
Sustainability Report Sustainability Governance
Sustainability Governance
Sustainability Driven by our long-term development goals, Shuanghuan Driveline has systematically established a sustainability strategy framework that is highly aligned with our
corporate strategy. With the vision to “Drive the transition in the gear industry to be the global leader in precision drivelines”, we have, around five key areas—green
Strategy circularity, unified harmony, innovation empowerment, symbiotic synergy, and scientific governance—clarified our key environmental, social and governance topics and
directions for action.
vision
Drive the transition in the gear industry to be the global leader in precision drivelines
Five strategic directions
Innovation
Green circularity Unified harmony empowerment Symbiotic synergy Scientific governance
Focus on green circular Strengthen the occupational health Build future factories to lead the Jointly build a safe and trustworthy Establish a scientific and reasonable
development, promote low-carbon and safety defence line, establish industry towards safer and more industry ecosystem. governance structure and risk
production, improve energy a rural empowerment mechanism, efficient development. prevention system.
efficiency, and establish a resource and achieve symbiotic development Corresponding topics: Supply
regeneration system. in which employees feel secure and Corresponding topics: chain security and sustainability, Corresponding topics: Stakeholder
rural revitalisation advances. Technological innovation, digital data and information security and engagement, sustainability
Corresponding topics: Climate
transformation, product and customer privacy protection governance, Anti-corruption and
change response, pollutant Corresponding topics: Employees, service safety and quality anti-bribery, anti-unfair competition
emissions, waste management, rural revitalisation and social
energy use, water resource welfare, occupational health and
utilisation, circular economy safety management
Sustainability Report Sustainability Governance
Sustainability Governance Mechanism
Governance Structure
We continued to refine our corporate governance structure
and remained committed to enhancing the scientific rigour,
transparency, and compliance of decision-making. The
Company has established a governance system comprising
Shareholders' Meeting Audit Committee
the Shareholders’ Meeting and the Board of Directors, with
clear powers and responsibilities and effective checks and
balances. Among these, while the Board of Directors performs Nomination Committee
its strategic decision-making and oversight functions, it has
established the Strategic and Investment Committee, the Board of Directors Strategic and Investment Committee
Nomination Committee, the Compensation and Assessment
Committee, the Audit Committee, and the ESG Committee. Board of Directors
Secretary Office Compensation and Assessment Committee
Each specialised committee operates professionally around
key areas such as strategic planning, risk control, internal
governance, and sustainable development, working in The Management ESG Committee
coordination and forming a concerted force to provide strong
support for the Board’s sound decision-making and the
Company’s steady development.
In 2025, Shuanghuan held four shareholders’
meetings and nine Board meetings, with one
ESG-related topic approved, achieving a 100%
approval rate. At the same time, we held four
online investor interactive communication
meetings and one offline investor interactive
communication meeting.
Sustainability Report Sustainability Governance
Shuanghuan Driveline continues to refine and enhance the ESG management system. Through
a clear division of responsibilities and coordinated collaboration across the decision-making,
management and execution levels, with implementation cascaded at every level, we ensure that As the highest decision-making body for the Company’s sustainability strategy, the Board of
sustainable development concepts and requirements are systematically integrated into corporate Directors provides overall planning and guidance for related work by establishing the ESG
strategic decision-making and day-to-day operations. Committee. The ESG Committee is responsible for reviewing the Company’s sustainability
strategy and ESG-related policies, overseeing the progress of ESG targets and key initiatives, and
incorporating environmental, social, and governance factors into the overall assessment during
major decision-making processes, so as to ensure that the Company’s ESG management direction
aligns with relevant domestic and international standards and industry best practices.
Board of Directors
ESG Committee
Decision-Making Senior executives and functional department heads are responsible for the specific advancement
Level and implementation of ESG strategies and policies, carrying out management and performance
evaluation around material topics, and regularly reporting work progress to the Board of Directors
Company executives and and the ESG Committee. Through the continuous provision of ESG-related training and the
leaders of various functional establishment of internal communication mechanisms, the Company strengthens sustainability
departments awareness among management at all levels, promotes cross-departmental collaboration, and
Management Level enhances the overall execution capability of ESG management.
Chairman’s Office The Chairman’s Office has established an ESG Working Group, which is responsible for
organising, coordinating, and driving the specific implementation of various sustainability
ESG Working Group initiatives. It promotes business departments, production sites, and frontline employees to carry
Executive Level
out operational activities in accordance with the Company’s ESG requirements, covering areas
such as green production, energy conservation and emission reduction, occupational health and
safety, the circular economy, and social responsibility. Meanwhile, the Company regularly carries
out ESG data monitoring and compliance reviews and leverages the digital management platform
to enhance data management and execution efficiency, driving the continued deepening of ESG
management from system development to refined operations.
Board Diversity and Independence
In advancing the continuous optimisation of corporate governance, Shuanghuan Driveline regards Board diversity as an important foundation for enhancing decision-making quality and long-term value creation capability,
and systematically integrates relevant requirements into designing the structure of the Board of Directors and selecting its members. When selecting directors, we not only focus on the professional capabilities and industry
experience required for the performance of their duties, but also take into account the gender composition and international perspectives, enhancing the judgement and inclusiveness of the Board of Directors in the face
of complex topics through a multidimensional combination. At present, the Board members have formed a relatively balanced professional structure in terms of strategic decision-making, operational management, market
expansion, financial and risk management, technological innovation, and sustainable development.
As of the end of the reporting period, the Company’s Board of Directors comprised nine directors, including three independent directors. Independent directors, within the corporate governance system, primarily provide
independent opinions and professional support in areas such as the deliberation of major matters, risk control, and the protection of the rights and interests of minority shareholders, effectively enhancing the checks and
balances and transparency of the Board’s operations. Meanwhile, in the course of continuously improving the Board structure, we have incorporated gender diversity into our long-term considerations. At present, the
Board of Directors includes one female director. Through the dynamic optimisation of the Board’s composition, the Company continuously consolidates its governance foundation, enhances its capabilities in risk prevention
and the fulfilment of responsibilities, and provides an institutional safeguard for the Company’s sound operations and sustainable development.
Sustainability Report Sustainability Governance
Stakeholder Engagement
Shuanghuan Driveline has established a multi-level and transparent communication mechanism with stakeholders to ensure that stakeholders’ concerns and needs are fully understood and addressed. The Company
regularly engages in dialogue with stakeholders such as government/regulatory authorities, shareholders/investors, customers, employees, suppliers/distributors, communities, partners, and the media. Through various
channels including shareholders’ meetings, investor engagement meetings, customer satisfaction surveys, supplier conferences, and corporate social responsibility programmes, we collect feedback and optimise our
operations and sustainability strategy.
Stakeholder
Suppliers/ Partners Media Community/ Industry
Governments/ Shareholders/ Customers Employees
Distributors Public Associations
Regulatory Authorities Investors
Business ethics Climate change
Product safety and Intellectual property Sustainable supply response
Product safety and Product safety
quality management chain Technological
quality Occupational health and quality Product safety and
Occupational health Product safety and Equal treatment of innovation
Customer and safety Intellectual Environmental quality
Topics and safety quality communication and Product safety and SMEs property performance Employee rights Intelligent
Concerned Climate change Anti-corruption, anti- Sustainability manufacturing
privacy protection quality management Data and Environmental
response bribery, and fair disclosures Energy
Sustainability Employee rights information protection
Circular economy competition Anti-corruption and conservation
disclosures security
Digital transformation Smart manufacturing anti-bribery and emission
and innovation reduction
Training and
Shareholders’ Social media performance Supplier conferences Social media
Communication Forums meetings Trade shows interviews Audit communications Special Press Industry seminar
Investor conferences Regular visits Industry
Channels Policy consultations
Earnings briefings Customer visits Phone/email/internal Routine visits meetings conferences and Public welfare exhibition
On-site inspections Customer satisfaction communication tools Technical discussions Phone/mail briefings
On-site inspections activities Collaborative
Incident reporting surveys Suggestion boxes Phone/mail communication Interviews
Emails research
Phone Communication Employee activities communication Site visits
Online communication Engagement surveys
Pushed the Company’s Actively fulfilled
information in official Continuously our social
Organised multiple account regularly deepened responsibilities
special topic symposia, and continuously the employee Posted over 100 by making a
strengthening strengthened customer communication updates on social targeted donation
media platforms, of RMB200,000 Sponsored the
communication and information reach mechanism, carried continuously to Shamen’s 10th “Good
Conducted regular
exchanges with relevant Participated in out more than enhancing brand education initiatives, Design” National
Improved investor special review and
stakeholders several domestic and 10,000 employee Held multiple communication supporting the Innovation
communication communication,
Conducted policy international exhibitions communication special efforts development of Design Awards
mechanisms organised over a Held multiple local education Ceremony
consultations and on-site throughout the year sessions and collected working
investigations on multiple and organise over 5,044 employee meetings and
four shareholders’ held more than ten conferences offered condolences 2025 industry
Progress occasions to enhance a hundred special satisfaction surveys handed over
and industry to disadvantaged conference of the
meetings, four online technical symposia
demand identification customer visits Held the staff congress a thousand exchange groups in Dongqing Gear and Electric
and one on-site investor Maintained over a
and responsiveness Carried out customer successfully to phone meetings Village, with a Drive Branch
exchange events, thousand regular
capabilities satisfaction surveys on safeguard employees’ and email Accepted focus on seriously of the China
and one earnings call phone and email interviews from ill recipients of the General Machine
Paid attention to the a normalised basis, and participation in the exchanges
during the entire year communications authoritative minimum living Components
Taizhou Meteorological continuously identified Company’s democratic
Bureau’s warnings and customer needs management media and allowance, elderly Industry
organised people living Association
improved the emergency Established an efficient Published a total of 12 dozens of media alone, persons with
response mechanism for response mechanism issues of Shuanghuan interviews disabilities, and
extreme weather and handled over a Newsletter throughout villagers who had
thousand customer the year fallen into poverty
inquiries annually due to illness
Sustainability Report Sustainability Governance
Materiality Assessment
The Company carries out material topic management in accordance with a systematic and verifiable process, and comprehensively
assesses the impact materiality and financial materiality of each topic on business activities. During the reporting period, the Company
continued to pay close attention to the key concerns of internal and external stakeholders and, in conjunction with our strategic direction,
operational priorities, and changes in the external environment, carried out dynamic reviews of material topics.
Based on the results of the previous year’s double materiality analysis, the Company reviewed the applicability and continuity of the
existing topics in light of our annual operating practices, policy changes, and matters of concern to stakeholders. Upon review, the
Company’s material topics for 2025 remained broadly stable and continued to effectively reflect our core management priorities
in environmental, social, and governance aspects. They will also continue to serve as an important basis for ESG management and
information disclosure in the current year.
Impact Materiality
Customer Privacy Protection
corruption
Note: The topic of “technology ethics” is not applicable to the business scope of
Shuanghuan Driveline and is therefore not listed separately.
Financial Materiality
Materiality Matrix
Flowing with
Green Circularity
Greenhouse gas emissions General waste generation intensity Waste recycled and utilised Total water use intensity decreased Eight training sessions were
intensity declined for three
consecutive years, a decreased by conducted on environmental
increased by by
year-on-year decrease of tonnes/RMB10,000 industrial value compliance, with a total training of
tonnes, a year-on-year industrial output, a year-on-year
added, a year-on-year decrease of
period.
Sustainability Report Flowing with Green Circularity Unified in Perfect Harmony Powered by Infinite Innovation Connected in Symbiotic Synergy Rooted in Steady Governance
Governance
Shuanghuan Driveline has continued to integrate environmental protection requirements throughout the entire process of operational and
management activities, gradually establishing an environmental management system based on environmental compliance management and
Sector goals covering areas including climate governance, pollution prevention and control, recycling and reuse, improvements in resource efficiency, and
ecological protection. We strictly comply with the laws, regulations, and standard requirements of China and the locations where we operate in
areas including environmental protection, pollutant emissions, the prevention and control of solid waste pollution, and resource management.
We continue to improve our internal environmental management policies, clarify the responsibilities and management requirements of each
Focus on green circular
department, and lay an institutional foundation for subsequent environmental governance.
development, promote low-carbon
production, improve energy use In September 2021, the Company has established a Carbon Neutrality and Dual Energy Control Task Force and set up a Group Carbon
efficiency, and establish a resource Emissions Office. Under the overall planning and supervision of the Board of Directors and the ESG Committee, we systematically advanced
work related to climate change, energy management, and emission reduction, and promoted the orderly implementation of environmental targets
regeneration system.
at the Group level. Focusing on the group’s environmental management needs, the Company assigned dedicated personnel to be responsible
for greenhouse gas management, energy use, and the advancement of emission reduction. Each subsidiary appointed corresponding officers
responsible for day-to-day coordination, data consolidation, and implementation of tasks, thereby establishing a top-down linkage and collaborative
Material topics working mechanism that provides stable data support and execution assurance for environmental management.
ESG Committee
Climate change response
Study and make recommendations on the company's long-term development strategy and major
waste management investment decisions, as well as the establishment and improvement of a comprehensive risk
management system.
energy use, circular
Assist the Board in evaluating the company's ESG performance and the risks and opportunities
economy it faces, formulate ESG-related policies, strategies, and targets, and organise the coordination,
supervision, and review of ESG policy implementation and progress toward targets.
Group Carbon Emissions Office Carbon Neutrality and Dual Energy Departments Responsible for
Control Task Force Carbon Management
Oversee the Group's carbon Each subsidiary has established a In accordance with the annual carbon
management in line with internal and Carbon Neutrality and Dual Energy neutrality work plan, relevant functional
external policy developments. Control Task Force, responsible for departments are clearly designated.
Formulate medium and long-term organising, coordinating, and directing Department heads collaborate and
carbon neutrality plans as well as efforts related to carbon neutrality and coordinate efforts to jointly advance
annual implementation strategies. energy consumption control. the implementation of carbon neutrality
initiatives.
Responsibilities of the Carbon Neutrality and Dual Energy Control Task Force
Sustainability Report Flowing with Green Circularity Unified in Perfect Harmony Powered by Infinite Innovation Connected in Symbiotic Synergy Rooted in Steady Governance
On this basis, the Company focuses on the impact of its production
and operational activities on the surrounding ecological environment,
incorporates biodiversity conservation and environmental risk identification Honours Related to Green Manufacturing at Factories
into day-to-day management, and endeavours to reduce the disruption of
its production and operational activities to ecosystems. Focusing on key
Provincial-Level Green Municipal-Level Green
environmental factors in the production and manufacturing process, we National Green Factory
Factory Benchmark Enterprise
continue to strengthen the management of pollutants and waste. In light
of process characteristics, we implement management for the classified
collection, standardised treatment, and compliant discharge of waste Zhejiang Shuanghuan, Chongqing
Jiangsu Shuanghuan Jiangsu Shuanghuan
gas, wastewater, waste, and noise, and continue to revise and improve Shuanghuan, Jiaxing Shuanghuan
institutional documents such as the Waste Gas Pollution Control Management
Procedure, the Waste Pollution Control Management Procedure, and the Noise
Pollution Control Management Procedure, further enhancing our pollution
prevention and control and environmental risk management and control Demonstration Enterprise for Manufacturing Green Supply Chain
standards. At the same time, the Company adheres to the principles Transformation and Upgrading Management Enterprise
of “reduction, resource utilisation, and harmlessness”, embeds waste
management requirements throughout the entire process of generation,
storage, transfer, and disposal, and further advances circular economy Chongqing Shuanghuan Zhejiang Shuanghuan
management. Focusing on the circular economy principles of “Reduce,
Reuse, and Recycle”, multiple departments work collaboratively to integrate
circular economy concepts into product design, process optimisation, scrap
recovery, and equipment selection and upgrading, among other aspects.
In terms of resource utilisation, we regard energy conservation and energy
efficiency improvement as important levers for achieving energy saving
and carbon reduction, and for reducing costs and enhancing efficiency,
thereby continuously advancing the construction of energy management
systems. Shuanghuan Driveline and its subsidiaries, in accordance with
the requirements of standards such as ISO 50001:2018, have established
and operated an energy management system by formulating energy
management policies, targets, metrics, and action plans for measures.
By the end of the Reporting Period, Zhejiang Shuanghuan, Jiaxing
Shuanghuan, and Jiangsu Shuanghuan, as key energy-consuming entities,
had all obtained ISO 50001:2018 Energy Management System certification
from a third-party organisation. The Company continues to advance
the development of green factories and enhance green manufacturing
capabilities, and has received the following honours:
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Climate Change Response
The Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report (AR6) Synthesis
Report Climate Change 2023 points out that human activities have caused climate change, that the
Scenario analysis
impacts of climate on humans and ecosystems far exceed expectations, that climate change has
exacerbated existing inequalities, and that there is an urgent global need to take comprehensive Shuanghuan Driveline focuses on its own risk management framework and, in conjunction with its
and systematic climate action in all sectors and all regions simultaneously. business characteristics and industry trends, has, since 2024, conducted scenario analysis each
year based on the physical climate scenarios published by the IPCC and the transition scenarios
published by the International Energy Agency (IEA), in order to identify the risks and opportunities
Strategy that we may face, and disclosed the relevant information in the ESG report for that year.
In climate change response, Shuanghuan Driveline continues to focus on the integrated impacts
of related actions across the economic, environmental, and social dimensions. By promoting low-
carbon design, green procurement, and product durability enhancement, we reduce resource Physical scenarios
consumption and customers’ costs of use; through energy efficiency management, emission
reduction projects, and management optimisation, we reduce the carbon emission intensity of The Company uses the low-emissions scenario (RCP2.6) from the IPCC Assessment Reports as
production operations and the value chain; and through carbon information disclosure and low- a temperature-control scenario of 2°C or below, and the high-emissions scenario (RCP8.5) as a
carbon practices, we promote the industry’s green transformation. Based on this, we further temperature control scenario above 2°C, to analyse the physical climate risks that we may face.
continue to improve our climate governance capabilities in terms of monitoring, prevention, Shuanghuan Driveline focuses on the impacts of acute and chronic risks under the high-emissions
management, control, and mitigation. scenario.
Monitoring Prevention Management Control Mitigation
Relying on the D-MOM digital We gradually introduce low-carbon, We formulate annual energy-saving We continue to promote the We advance rooftop distributed
manufacturing operations recyclable, and source reduction and carbon-reduction targets, application of energy-saving photovoltaic projects, adopting the
management platform, we design concepts during the product and break down the relevant equipment and the optimisation model of self-generation for self-
continuously obtain key data design stage, and give priority indicators to each production of production processes, and consumption and feeding surplus
such as energy use and carbon in procurement to raw materials department, clarifying the division reduce energy consumption electricity into the grid, and increase
emissions, and conduct dynamic and components that meet of responsibilities and assessment per unit product and carbon the proportion of green electricity used
monitoring of climate-related environmental and low-carbon requirements, and promote the emission levels. through measures such as purchasing
indicators. requirements, thereby reducing the implementation of the targets green electricity certificates, thereby
product’s carbon footprint across its through a continuous improvement reducing Scope 2 greenhouse gas
entire lifecycle. mechanism. emissions.
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Transition scenarios
The Company uses the Net Zero Emissions by 2050 Scenario (NZE) mentioned in the IEA World Regarding the degree of impact of risks and opportunities, Shuanghuan Driveline focuses on the
Energy Outlook as the temperature-control scenario of 2°C or below, and the Stated Policies potential impact (financial impact) on the corporate value chain under different scenarios, and
Scenario (STEPS) as the temperature-control scenario above 2°C, to analyse the macro environment ultimately categorises the degree of impact into five levels: Very Low, Low, Medium, High, and Very
that we may face. For transition risks, Shuanghuan Driveline focuses on the impact on the Company High.
of changes in external policies, the market, technology, and other factors.
Scenario Analysis Model
Time horizons
Scenario Analysis (Physical Scenarios)
Climate Scenario RCP2.6（IPCC） RCP8.5（IPCC） Scenario Analysis Time Horizons Segmentation
Without government intervention,
A scenario with very low
GHG emissions continue to rise
greenhouse gas concentration,
throughout the 21st century,
Description requiring CO2 emissions should
and the concentration of GHG
be reduced from 2020 to a net
in the atmosphere continues to Short term Medium term Long term
negative level by 2100.
increase. (within 1-3 years) (within 10 years) (To 2050)
Warming by 2100 RCP2.6（IPCC） RCP8.5（IPCC） Consolidate Continuously Promote the green
the foundation enhance emission transformation of the
for energy and reduction industrial chain, deepen
carbon emission effectiveness and low-carbon full life cycle
Scenario Analysis (Transition Scenarios) data monitoring, the carbon emission design, and collaborate
strengthen early monitoring system, with upstream and
warnings for Focus on intelligent downstream partners
Climate Scenario NZE（IEA） STEPS（IEA） extreme weather manufacturing to advance carbon
and emergency and green factory reduction across the
management for development, and entire value chain, while
A pathway where the global production continuity, increase investment prudently exploring the
Countries maintain current and ensure stable in high-efficiency supplementary role of
energy sector achieves net-zero
Description policies and the policies they delivery. equipment and low- high-quality carbon credits
emissions by 2050 while limiting
have already announced. carbon processes. in achieving carbon
global warming to below 1.5°C. reduction targets.
Warming by 2100 1.4℃ (50% probability) 2.4℃ (50% probability)
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Climate Change Response Risks and Opportunities
Financial Impact Climate Scenario Analysis
Risk Value Chain
Type
Risk Event
Stage
Potential Impact
Financial Climate
Degree of Impact
Impact Description
Category Scenario
Short-term Mid-term Long-term
Typhoons damage production facilities at our sites, such as plants and RCP2.6 Low Low Low
Suppliers, warehouses, affecting gear machining precision and production capacity. Increased expenditure
Construction workers or other employees are injured, unable to commute to and Assets (-) on facility repairs, and
Typhoon logistics, direct
from work, leading to a halt in some production machinery. Revenue (-) reduced income due to
operations Disruption of transportation routes for raw materials and products, such as steel, capacity constraints RCP8.5 Low Low Medium
causes upstream and downstream products to be undeliverable on time.
RCP2.6 Low Low Low
Suppliers, Employees are prone to heatstroke or other health issues in high-temperature
Increased energy
environments, which reduces the Company’s production efficiency. Expenditure
Heat waves logistics, direct consumption and
Increased cooling demand for employees at work and for equipment operation (+)
operations protective investment RCP8.5 Low Low Medium
leads to higher operating costs.
Acute
Physical risks
RCP2.6 Very low Very low Very low
Flood inundates production facilities, resulting in direct property losses.
Suppliers, Equipment shutdown leads to order delays; logistics disruptions affect supporting Increased repair
Revenue (-)
Flood logistics, direct deliveries to vehicle manufacturers. costs and losses from
Assets (-)
operations Government authorities suspend business production and operations, leading to production suspension RCP8.5 Very low Low Low
a reduction in operating revenue.
RCP2.6 Very low Very low Very low
Prolonged heavy rain may cause water ingress in production plants, damaging
Suppliers, production equipment, raw materials, and finished products. Increased repair
Heavy Construction workers or other employees are injured, unable to commute to and Assets (-) costs and losses from
logistics, direct
rainfall from work, leading to a halt in some production machinery. Revenue (-) production suspension,
operations Equipment shutdown leads to order delays; logistics disruptions affect supporting reduced revenue RCP8.5 Very low Low Low
deliveries to vehicle manufacturers.
RCP2.6 Low Low Low
Suppliers, direct Reduced available water and rising water prices lead to increased operating Expenditure
Drought Increased water costs
operations costs. (+)
RCP8.5 Low Medium Medium
Increased cooling demand for employees at work and for equipment operation RCP2.6 Very low Low Low
Rising Expenditure
leads to higher operating costs.
Chronic Direct operations (+) Increased energy costs
temperatures Employee labour costs and equipment insurance, maintenance, and repair costs
Cash flow (-) RCP8.5 Very low Low Medium
increase.
Expenditure RCP2.6 Very low Very low Low
Sea level Suppliers, direct Some sites are located along the south-eastern coast at relatively low elevations, Investment in relocation
(+)
rise operations and sea level rise may force production sites to relocate. or protective measures
Assets (-) RCP8.5 Very low Low Medium
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Financial Impact Climate Scenario Analysis
Risk Value Chain
Type
Risk Event
Stage
Potential Impact
Financial Climate
Degree of Impact
Impact Description
Category Scenario
Short-term Mid-term Long-term
Increased greenhouse gas emission costs drive a rise in related operational NZE Very low Low Medium
Increased carbon
Suppliers, direct inputs, including the expenses of organising greenhouse gas emission verification
Expenditure management costs
Policy and legal risks and product carbon footprint projects.
operations (+) and compliance
The EU Carbon Border Adjustment Mechanism (CBAM) may lead to increased
expenditure
international trade expenditure and greater trade difficulties.
STEPS Very low Low Medium
Transition risks
The electric drive system is upgraded towards higher rotational speeds and lower NZE Medium Medium Low
Increased costs for
Direct noise, increasing the pressure from technological iteration. Expenditure
technological upgrades
Technology risks Enterprises increase investment in high-efficiency energy saving, clean energy use, (+)
operations and equipment
and the circular economy, for example, the service life of high energy-consuming Assets (-) STEPS Low Low Medium
replacement
equipment is reduced.
Direct operations, Customers tend to procure lower-carbon products available in the market. For Insufficient product NZE Low Medium Medium
Market risk marketing and example, new energy vehicle companies prioritise low-carbon suppliers. If we are Revenue (-) competitiveness may
sales unable to meet customer expectations, this will lead to a decline in operating revenue. affect orders STEPS Very low Low Medium
Marketing and Failure to meet stakeholders’ expectations regarding corporate sustainability, or a lack Insufficient green image NZE Low Medium Medium
Reputational risks of clear competitive advantage compared with peer enterprises, will lead to a decline Revenue (-) affects confidence in
sales in our brand image. capital and markets STEPS Very low Low Medium
Opportunities related Improving resource utilisation efficiency and process efficiency will bring new positive
Direct Reduced energy
opportunities for the Company. Expenditure
to resource efficiency consumption and costs NZE Medium High High
operations Strengthening the circular use of materials such as steel, and recycling packaging (-)
improvement per unit of product
materials can improve resource utilisation efficiency.
Transition to clean Direct Increasing the proportion of clean energy and renewable energy used in the energy Reduced long-term
Expenditure
mix can reduce carbon emissions on the one hand and lower energy costs on the energy costs and carbon NZE Medium High High
energy operations (-)
other. costs
Opportunity
Low-carbon Direct Expand market share in
Develop lightweight, low-noise, highly efficient electric drive gear systems. Revenue (+) NZE Medium High High
innovative products operations the new energy sector
Direct operations, Identify lower-carbon and more innovative solutions in the market, jointly carry out low- Enhance international
Green supply chain
marketing and carbon research with upstream and downstream enterprises in the value chain, and Revenue (+) market access NZE Medium High High
collaboration develop new market opportunities. capabilities
sales
Brand and capital Marketing and By improving corporate ESG performance and strengthening ESG-related information Enhance brand
disclosure, help establish a more deeply rooted green brand image and enhance Revenue (+) competitiveness and NZE Medium High High
opportunities sales product competitiveness. financing capabilities
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Climate resilience improvement
Based on the results of scenario analysis, the Company has developed practical response plans for the physical risks, transition risks, and opportunities that we may face in the future, in order to enhance climate resilience
in an uncertain climate change environment.
List of Climate Risks
Establish a meteorological early-warning response mechanism, track extreme Optimise temperature control systems in production environments to reduce
weather information in real time, and activate emergency response plans; Rising energy consumption intensity;
Typhoon Stockpile typhoon-prevention supplies (sandbags, emergency lighting temper- Strengthen employee health protection measures;
equipment, etc.), and improve personnel evacuation and equipment atures Flexibly schedule working hours to reduce the risks associated with working in
protection plans; high temperatures.
Optimise the supply chain layout, establish a diversified supplier system,
and reduce single-point disruption risks.
Continuously assess climate exposure risks at coastal sites;
Strengthen management of high-temperature operations, provide heatstroke- Sea level Incorporate this into long-term strategic planning, and advance infrastructure
prevention supplies, and carry out health monitoring; rise reinforcement and site selection optimisation in a timely manner.
Heat Pay attention to weather warnings and implement high-temperature leave;
waves Equip backup power sources to ensure stable power supply during peak
periods.
Dynamically track changes in domestic and international carbon policies and
regulations;
Policy and Formulate and implement carbon reduction and energy-saving action plans;
Improve the construction of flood control facilities, stockpile flood control legal risks Regularly assess the impacts of policy changes on production and the supply
materials and conduct regular drills;
Flood chain.
Optimise the supply chain structure, diversify procurement sources for key raw
materials;
Incorporate low-carbon and circularity principles into product full life cycle
Techno- design;
logy risks Promote the application of lightweighting, recyclable materials, and green
processes.
Strengthen the maintenance and upgrading of the drainage system, and
Heavy regularly inspect the operating status of waterlogging prevention facilities;
rainfall Implement a diversified supply strategy to ensure continuity of logistics.
Maintain ongoing communication with key customers to understand trends in
Market
low-carbon demand;
risk Continuously enhance product energy efficiency and carbon performance.
Establish a multi-water source guarantee mechanism and plan to formulate an
emergency water source plan;
Drought Increase the proportion of recycled water use, and promote water-saving
Reputa- Strengthen stakeholder engagement and feedback mechanisms;
processes and facilities;
tional risks Enhance the transparency and standardisation of ESG information disclosure.
Regularly conduct water resource risk assessments.
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List of Climate Opportunities Risk Management
Promote lean manufacturing and digital management to improve the utilisation Shuanghuan Driveline strictly manages climate change risks in accordance with the responsibilities,
Resource efficiency of materials and energy; methods, and processes stipulated in the Company’s management system, and has established
efficiency Increase the proportion of recycled materials used and strengthen the circular comprehensive processes for climate change risk identification, risk assessment, and risk response.
utilisation system.
In accordance with national policies and regulations and listing rules, the
Deploy rooftop photovoltaics and procure green electricity to optimise the Company organises relevant departments at Zhejiang Shuanghuan and in
Identifica-
Energy energy mix; subsidiaries and associates each year to identify potential climate change
tion
supply Increase the proportion of renewable energy used to reduce carbon emissions risks that may be encountered in light of their own operating conditions.
per unit of product.
The Company adopts a qualitative analysis method to assess the likelihood
Carry out product carbon footprint accounting, identify high-emission stages, Assess-
of risk occurrence and the degree of impact, and ranks risk materiality based
and continuously optimise; ment
Innovative Integrate ESG concepts at the design stage, promoting lightweighting and on the assessment results.
products recyclable design;
Increase R&D investment in new technologies, new processes, and new
materials. The Company continuously enhances the climate response capabilities of
the relevant departments and participates in related training courses on
Response greenhouse gas emissions accounting, climate change, and other topics. In
response to key risk matters, the Company arranges dedicated personnel to
Collaborate with upstream and downstream partners to develop low-carbon
solutions, and expand new energy and green markets. follow up and respond in conjunction with specific projects or management
Market
Actively participate in industry and international ESG exchange activities; tasks.
Reputation Strengthen responsible marketing, and leverage third-party certification to
enhance credibility.
Shuanghuan regularly monitors progress on climate risks and opportunities,
Monitoring
and reports to the Board of Directors at least once a year.
Carbon Emissions Reduction Management
Shuanghuan Driveline has consistently regarded the national dual carbon goals as an important part of our corporate strategy and has systematically developed and published the Shuanghuan Driveline Carbon Neutrality
Action Plan to coordinate and advance carbon emission reduction efforts through top-level design. The Company, taking into account our carbon emissions profile and business development plan, comprehensively
considers internal and external factors such as expected future growth in operations, our potential for energy conservation and consumption reduction, carbon emission trends in key raw material industries such as
steel, and national policies on energy structure transition. On this basis, we have developed a clear and actionable carbon neutrality roadmap, specifying three key phased targets for 2030, 2040, and 2050. We will
progressively promote a transformation pathway from “peak stabilisation” to “deep emission reduction”, and then “towards neutrality”, ensuring that carbon reduction measures are implemented in phases and in an orderly
and well-paced manner.
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Metrics and Targets
Target setting Metrics management
Shuanghuan Driveline has established the overarching targets of reaching peak Shuanghuan Driveline continued to track carbon reduction performance, and we account for
carbon emissions by 2030 and achieving carbon neutrality by 2050. On this basis, greenhouse gas emissions in accordance with ISO14064-1:2018.
we have formulated near-term, medium-term, and long-term carbon reduction
targets: Shuanghuan Driveline Greenhouse Gas Emissions
Metrics 2023 2024 2025
Total GHG Emissions (Scope 1 + 2)
With 2023 as the base year, reduce energy 295,460.24 263,841.62 258,240.13
(tonnes CO₂e)
consumption intensity by 5% each year, reduce
carbon emission intensity by 8.5%，and reduce
Near-term Scope 1 – Direct GHG Emissions
(tonnes CO₂e)
carbon emission intensity by 46% by 2030;
Scope 2 – Indirect GHG Emissions
(tonnes CO₂e)
Carbon Emission Intensity
(tonnes CO₂e/RMB10,000 industrial 0.39 0.29 0.28
By 2040, reduce our operational carbon emissions
output)
Mid-term
by
Carbon Emission Intensity
(tonnes CO₂e/RMB10,000 industrial 1.01 0.74 0.63
value added)
Note: 1. The greenhouse gases included in the calculation are: CO₂ (carbon dioxide), CH? (methane), N₂O (nitrous oxide), HFCs
(hydrofluorocarbons), PFCs (perfluorocarbons), SF? (sulphur hexafluoride), and NF? (nitrogen trifluoride).
Long-term By 2050, achieve carbon neutrality in our own operations.
Huanchuang, Fundrive Technology, Jiaxing Shuanghuan, Jiangsu Huanou, Jiangsu Shuanghuan, and Chongqing Shuanghuan.
East China region: 0.7035 kgCO₂/kWh. For 2024, the factor is based on the 2022 National Power CO₂ Emission Factor: 0.5366
kgCO₂/kWh. For 2025, the factor is based on the 2023 Regional Power Average CO₂ Emission Factor.
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Pollutant Emissions
Target Review
Metrics 2025 Target Completion Status Notes
Decrease by 3%
VOCS /
year-on-year
Adjustment to
Decrease by 3% Not
NOX the calculation
year-on-year completed basis
Decrease by 3%
PM / VOC emissions (tonnes) NOx emissions (tonnes) PM emissions (tonnes)
year-on-year VOC emission intensity (tonnes/RMB 100 million) NOx emission intensity (tonnes/RMB 100 million) PM emission intensity (tonnes/RMB 100 million)
Decrease by 3%
COD / VOCs Emissions NOx Emissions
year-on-year PM Emissions
Decrease by 3%
NH3-N /
year-on-year
Note. The scope of waste gas pollutant emissions covers nine sites: the Shuanghuan Driveline Emissions of Waste Gas Pollutants
group headquarters, Zhejiang Shuanghuan, Fine Motion Technology,
Dalian Huanchuang, Fundrive Technology, Jiaxing Shuanghuan, Jiangsu
Huanou, Jiangsu Shuanghuan, and Chongqing Shuanghuan. 2025Permitted
Metrics Unit 2024 Emissions 2025 Emissions 2026 Emissions Target
Emissions
Waste Gas Emissions Management
A 5% decrease compared
In terms of waste gas management, Shuanghuan Driveline continues VOCs tonnes 20.54 14.24 35.09
with 2024
to improve its classified treatment and process control mechanisms
for pollutants such as combustion waste gases, oil mist, organic
waste gases, and particulate matter generated in processes including
A 5% decrease compared
heat treatment, quenching, cleaning, shot blasting, and welding. NOx tonnes 2.97 3.09 6.92
with 2024
In accordance with requirements, the Company conducts regular
monitoring of major pollutants such as VOCs, NOx, and particulate
matter to ensure that emissions comply with national and local A 5% decrease compared
standards. In response to different types of waste gas, we have PM tonnes 3.42 2.08 22.86
with 2024
established supporting treatment facilities such as combustion
treatment, spray scrubbing and dust removal, oil mist purification,
electrostatic deoiling, and ventilation and exhaust systems. Emissions
are discharged in an organised manner through a properly designed
SOx tonnes / 0 0.046 /
exhaust system. We also strengthen equipment maintenance and
process control to reduce the risk of fugitive emissions.
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Case Waste Gas Combustion Waste Heat Recovery Wastewater Discharge Management
Shuanghuan Driveline actively practises the concept of green production by In terms of wastewater discharge management, Shuanghuan Driveline, taking into account the characteristics of production
installing high-efficiency waste gas treatment equipment at the waste gas and domestic water use, implements classified collection and standardised treatment for various types of waste water.
Production wastewater is treated through supporting wastewater treatment facilities to meet the standards for discharge into
discharge outlets of its core production workshops, enhancing waste gas
the sewer network, and is connected to the municipal pipeline network; oily wastewater from the canteen is treated through an
treatment capabilities through processes such as activated carbon adsorption oil interceptor or oil separation facilities before being discharged into the domestic sewage system; domestic sewage is pre-
and catalytic combustion. Meanwhile, we construct supporting waste heat treated through septic tanks to meet the standards for connection to the sewer network and is connected to the network in a
recovery systems to reuse high-temperature thermal energy in the waste gas unified manner. It is ultimately treated centrally by the wastewater treatment plant and discharged in compliance with standards,
for the parts cleaning process, replacing part of traditional electric heating effectively reducing the impact of wastewater discharges on the surrounding environment.
methods and improving energy utilisation efficiency. On this basis, the Company carries out routine monitoring of wastewater pollutants as required. The main monitoring
indicators include COD, NH?-N, etc., and the monitoring frequency is at least once a year. On-site sampling is adopted,
and testing and evaluation are conducted in accordance with relevant national standards to ensure that wastewater
discharges continue to comply with regulatory requirements.
COD emissions (tonnes) NH3-N emissions (tonnes)
COD emission intensity (tonnes/RMB 100 million) NH3-N emission intensity (tonnes)
COD Emissions NH3-N Emissions
Shuanghuan Driveline Emissions of Wastewater Pollutants
Metrics Unit 2024 Emissions 2025 Emissions
Emissions Target
A 5% decrease
COD tonnes 6.20 5.70 11.29 compared with
A 5% decrease
NH3-N tonnes 0.84 0.28 2.36 compared with
Note. The scope of wastewater pollutant emissions covers nine sites:
the group headquarters, Zhejiang Shuanghuan, Fine Motion Technology, Total tonnes / 0.007 / /
Dalian Huanchuang, Fundrive Technology, Jiaxing Shuanghuan, Jiangsu Phosphorus
Huanou, Jiangsu Shuanghuan, and Chongqing Shuanghuan.
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Noise Management
Waste Management
In terms of noise management, Shuanghuan Driveline has established and implemented a
noise pollution prevention and control management system, systematically identifying the main
noise sources in production and operations, and controlling noise levels by procuring low-noise
equipment and adopting isolation and vibration-damping measures for high-noise equipment.
We carry out noise management in accordance with the requirements of the Emission Standard for
Industrial Enterprises Noise at Boundary and engage a third-party organisation to conduct monitoring, Target Review
with the results complying with the relevant standards.
Metrics 2025 Target Completion Status Notes
Case Washer Noise Modification General waste
Decrease by 3%
generation /
year-on-year
intensity
In 2025, Shuanghuan Driveline implemented a dedicated noise-optimisation modification for the
washer. By installing sound-insulation enclosures, optimising air pressure and intake airflow control, Some sites carried out
and upgrading key components, we systematically reduced equipment operating noise. To address systematic desilting and
issues with the original nozzles, such as excessive flow rate, insufficient pressure resistance, facility maintenance during
and susceptibility to bursting, we replaced them with dedicated low-noise nozzles with stronger Hazardous waste the reporting period,
Decrease by 3% Not
pressure-resistance performance. We also optimised nozzle angles for different workpieces, generation resulting in a temporary
year-on-year completed
effectively reducing equipment operating noise while meeting drying requirements. After testing, intensity increase in the amount
the noise around the remodelled equipment is controlled below 85 decibels. of hazardous waste
generated during the
period.
Information on Shuanghuan Driveline Entities Subject to Mandatory Environmental
Information Disclosure in Accordance with the Law
Note. The scope of waste gas pollutant emissions covers nine sites: the group headquarters, Zhejiang
Shuanghuan, Fine Motion Technology, Dalian Huanchuang, Fundrive Technology, Jiaxing Shuanghuan,
No. Enterprise Name Category of Key Units Query Index Jiangsu Huanou, Jiangsu Shuanghuan, and Chongqing Shuanghuan.
Key water environment
Zhejiang Shuanghuan polluters, key air
Publicly available
websites*
Yuhuan Base environmental risk control
units in Taizhou City
Shuanghuan Gear (Jiaxing) Environmental risk control
Publicly available
websites*
Co., Ltd. Jiaxing
* https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-search
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Strategy Resource Utilisation of Waste Quenching Oil
Case from Heat Treatment
Description of Potential Time
Type Business and Financial Impacts In 2025, Shuanghuan Driveline optimised its management approach for
Risks/Opportunities Dimension
waste quenching oil generated in the heat-treatment process by setting up
Gear manufacturing involves multiple types of dedicated oil tanks in the heat-treatment area for centralised collection and
Tightened regulation waste, including cutting fluids and waste oil. If waste classified management of waste oil, preventing it from entering the wastewater
Medium
classification, storage, transfer, or disposal management treatment system and increasing the treatment load. The collected waste
of solid waste and Risk term(3-10
is inadequate, this may trigger compliance penalties and oil was transferred to the dedicated oil tanks via a sealed method and was
hazardous waste years)
rectification-related production suspension, and increase regularly entrusted to qualified entities for recycling, and ultimately handed
disposal and management costs.
over to professional enterprises for resource utilisation.
Downstream customers have become more
Rising requirements for concerned about waste reduction, resource utilisation,
Medium
green manufacturing and environmental compliance performance in the
Risk term(3-10
and waste manufacturing process. If governance capabilities are
years)
management insufficient, this may affect customer audits, project
access, and brand image.
Improved operational By reducing hazardous waste generation, increasing
the recycling and utilisation rate of waste oil and waste Medium
efficiency due to
Opportunity materials, and optimising the use of packaging materials, term(3-10
waste reduction and we can help lower disposal costs and raw material years)
resource recovery consumption, and improve manufacturing efficiency.
Enhanced green Promoting the resource utilisation of grinding oil, waste
manufacturing mineral oil, metal scrap, and other materials helps Medium
competitiveness due Opportunity improve resource utilisation efficiency and strengthen term(3-10
to circular utilisation the Company’s competitive advantages in green years)
capabilities manufacturing and low-carbon supply chains.
Impact, Risk, and Opportunity Management
Focusing on the objective of developing a “Zero-Waste Factory”, Shuanghuan Driveline continues to optimise waste
management in three aspects: source reduction, resource utilisation, and compliant disposal. By selecting raw and
auxiliary materials with low hazard and toxicity, optimising process and equipment configurations, and advancing
technological transformation, we reduce the generation of waste, particularly hazardous waste. For general industrial
solid waste, the Company strengthens scrap recycling, the use of recycled materials, and the circular use of packaging
materials, while also promoting paperless office practices and reducing the use of disposable items. For hazardous
waste, we implement classification and labelling, inventory registers, standardised storage, and transfer and disposal in Dedicated Oil Tank for Heat Treatment
accordance with the law, and actively explore pathways for the circular utilisation of recyclable hazardous waste.
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Case Reduction of Waste Cutting Fluid
The Company purchased an oil sludge separator and low-temperature evaporation concentration equipment to
implement resource utilisation of waste cutting fluid. The waste cutting fluid first passed through filtration and a de-
oiling system to remove particulates and floating oil. The floating oil was handled in accordance with the management
requirements for hazardous waste. The remaining liquid was separated through evaporation into concentrated cutting
fluid and wastewater, of which the wastewater was treated at the wastewater treatment station, while the waste
concentrated cutting fluid was entrusted to external parties for disposal. The amount of hazardous waste disposed of
decreased to one-tenth of that in 2024. This project can reduce the generation of hazardous waste by 740 tonnes per
year, recover and utilise 84 tonnes of waste mineral oil, and save approximately RMB1.40 million in costs annually.
To ensure compliance and effectiveness in management, the Company regularly conducts internal inspections on waste
management, and strengthens the management of relevant disposal service providers. We assess and supervise parties
involved in hazardous waste disposal, and leverage information systems to strengthen the management of key data,
such as hazardous waste inbound and outbound storage, weighing, and transfer, thereby enhancing the transparency
and traceability of waste management. During the reporting period, the coverage rate of assessments of hazardous
waste disposal related parties reached 100%. The Company will take Zhejiang Shuanghuan (a Zhejiang Province “Zero-
Waste Factory”) as a model and continue to promote the replication and roll-out of “Zero-Waste Factory” development
experience across all production sites, continuously enhancing the level of refined waste management. Oil Sludge Separator and Low-Temperature Evaporation Concentration Equipment
Metrics and Targets
Shuanghuan Driveline Waste Discharge
Metrics Unit 2024 Progress 2025 Progress 2026 Target
Total amount of hazardous waste tonnes 3,470.81 4,187.36 /
Hazardous waste generation intensity tonnes/RMB10,000 output value 0.0039 0.0045 /
Hazardous waste generation intensity tonnes/RMB10,000 industrial value added 0.0098 0.010 A 5% decrease compared with 2024
Total general waste tonnes 24,393.67 26,558.51 /
General waste generation intensity tonnes/RMB10,000 output value 0.0271 0.0289 /
General waste generation intensity tonnes/RMB10,000 industrial value added 0.0687 0.0644 A 5% decrease compared with 2024
Note. The scope of waste discharge covers nine sites: the group headquarters, Zhejiang Shuanghuan, Fine Motion Technology, Dalian Huanchuang, Fundrive Technology, Jiaxing Shuanghuan, Jiangsu Huanou, Jiangsu Shuanghuan, and
Chongqing Shuanghuan.
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Ecosystem and Biodiversity
Protection
Biodiversity is an important foundation for maintaining ecosystem stability and sustainability. In the course of production and
operations, Shuanghuan Driveline coordinates and takes into account ecological protection requirements, continuously advances
management measures related to biodiversity conservation, and is committed to reducing the potential impacts of operational
activities on the ecological environment. We strictly comply with relevant laws and regulations such as the Environmental Impact
Assessment Law of the People’s Republic of China. In the site selection, construction, and operation of new projects, we implement
requirements for biodiversity conservation and land use assessment, ensuring that project site selection avoided ecological protection
redlines and ecologically sensitive areas. Meanwhile, the Company strengthens the monitoring and management of pollutant
emissions, including waste gas and wastewater, at each production base, to prevent adverse impacts on natural ecosystems. In our
daily operations, we focus on avoiding disturbance to wildlife habitats, reducing soil erosion and ecological damage, and proactively
pay attention to actions related to biodiversity conservation. In the future, the Company will, in light of the characteristics of our
business, explore coordinated cooperation with local environmental protection authorities and relevant institutions, and continue to
enhance our ecological protection and biodiversity management standards.
Environmental Compliance Management
Shuanghuan Driveline attaches great importance to environmental compliance management, strictly complies with relevant national
laws and regulations on ecological and environmental protection, as well as standard requirements for pollutant emissions, hazardous
waste storage, noise control, etc., and continuously improves the full-process environmental compliance management system. The
Company has formulated internal standards such as the Environmental Protection Management System, and revised documents
including the EHS Assessment Management Measures and the Emergency Response Plan for Environmental Incidents in 2025,
adding the Emergency Response Plan for Radiation Incidents to further strengthen the identification of environmental risks and the
implementation of responsibilities.
During the reporting period
The Company conducted eight environmental compliance-themed training sessions, with total training of 5,801 person-
hours and 11,502 participants. Two companies of Shuanghuan Driveline and its major subsidiaries were included in the list
of enterprises required by law to disclose environmental information.
By the end of the reporting period, ISO 14001:2015 Environmental Management System certification had covered all
production sites of the Company that were officially in operation. During the reporting period, Shuanghuan Driveline did not
experience any major environmental incidents or major administrative penalties.
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Energy Use
Impact, Risk, and Opportunity
Target Review
Management
Metrics 2025 Target Completion Status Notes
Digitalisation for energy conservation and
Overall energy
consumption intensity
efficiency enhancement
(calorific value equivalent) 0.42 /
(tce/RMB10,000 industrial Shuanghuan Driveline, supported by technologies such as the Industrial
value added) Internet and 5G and with energy efficiency management as a key application
focus, has gradually developed a set of digital management methods suited
to our own development. Shuanghuan Driveline’s digital ecosystem adopts a
“1+5+1” top-level design model:
战略
Description of Potential
Risks/Opportunities
Intensified energy
price volatility
Type
Risk
Business and Financial Impacts
Gear manufacturing involves certain high energy-
consuming processes. Increases in the prices of electricity,
natural gas, and other energy sources will directly drive
up manufacturing costs, affecting product profitability and
Time
Dimension
Short term
(1-3 years)
price competitiveness.
National and local authorities continue to advance dual
Continuously tightened controls on energy consumption, energy conservation Five major platforms for digital design,
Medium
energy-saving and and carbon reduction, and the management of key intelligent production, safe control, digital
Risk term(3-10
carbon reduction energy-consuming entities. If improvements in energy use management, and green manufacturing;
years)
policies efficiency are insufficient, this may increase compliance
pressure, retrofit investment, and operating costs.
Improved energy Through the continuous operation of the energy management
system, and the optimisation of energy consumption monitoring Medium
efficiency due to the
Opportunity and key process controls, we can reduce energy consumption term(3-10
construction of energy per unit of product and enhance manufacturing efficiency and years)
management systems A Future Factory integrating R&D,
cost control capabilities.
manufacturing, quality control, sales, logistics,
and customer service, established through
Scope for cost Through equipment upgrades, waste heat recovery, and
Medium internal and external collaboration across the
reduction and process optimisation, we can reduce the consumption of
Opportunity term(3-10 industry chain;
efficiency gains due to electricity, gas, heat, and other forms of energy, cut operating
years)
energy-saving retrofits costs, and enhance resource utilisation efficiency.
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To advance the digital, lean, and automated transformation, Shuanghuan Driveline continues to improve its
Case Distributed Photovoltaic Systems
energy digital management capabilities. The Company has independently developed the D-MOM digital
manufacturing operations management platform, which integrates 12+N functional modules such as energy
consumption and carbon neutrality management, and is capable of real-time collection, modular monitoring,
Shuanghuan Driveline built distributed rooftop photovoltaic power generation projects
and intelligent analysis of energy consumption and variables related to major energy-using equipment.
across multiple sites, with a cumulative installed capacity of 28.148 MWp. During the
Meanwhile, Evoring has applied the WAGO Building Energy Management and Monitoring System in line
reporting period, Zhejiang Shuanghuan fully utilised locations such as building rooftops
with project realities to achieve real-time monitoring, data analysis, and remote control of workshop energy
and carport roofs to expand a 3.62 MWp distributed photovoltaic power generation
consumption, further enhancing the digitalisation and refinement of energy management.
system.
D-MOM Digital Manufacturing Operations WAGO Building Management Energy Management and
Management Platform Monitoring System
Promotion of a low-carbon transformation in energy use
Electrification of end-use energy Clean and low-carbon transformation of energy
Building Rooftop Photovoltaic Photo
Through the electrification retrofit of workshop We give priority to using high-quality,
production equipment and transport vehicles, efficient, green, clean, low-carbon energy
we increase the proportion of electrified such as natural gas. In fossil-fuel energy-
terminal energy-using equipment and reduce consuming equipment, energy consumption
reliance on fossil fuels. from natural gas accounts for over 95%.
Diversification and greening of energy use
By constructing distributed photovoltaic projects on building rooftops and carports, and implementing
measures such as electrochemical energy storage systems, we increase the use of green electricity.
Additionally, we develop corresponding green electricity procurement strategies and targets to
increase the proportion of renewable energy consumption. Through the development and operation
of integrated systems such as distributed photovoltaic power generation, waste heat recovery and
utilisation, and smart energy management and control, we promote efficient and complementary
utilisation of multiple energy sources. At present, the Company has implemented photovoltaic power
applications. In the future, we will further increase the proportion of green electricity procured and
used, such as wind power and hydropower, and progressively build a diversified and complementary Carport Rooftop Photovoltaic Photo
green electricity utilisation system.
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Energy-saving technical transformation measures
The Company implements a series of energy-saving technical transformation measures across its sites, including equipment and facility upgrades, recycling and reuse of energy and resources, optimisation of
production processes, and substitution with renewable energy sources.
An Intelligent Centralised Air Supply System Based on Case Preparing Hot Water Through Flue-Gas Waste Heat Recovery
Case Improved Energy Efficiency of Air Compressors
During the reporting period, the intelligent centralised air supply system for improving the energy Zhejiang Shuanghuan recovered flue-gas waste heat discharged by 10 natural-gas multi-purpose
efficiency of air compressors, jointly developed by Zhejiang Shuanghuan and State Grid (Taizhou) furnaces in the heat treatment workshop by installing heat exchangers. Jiaxing Shuanghuan
Integrated Energy Company, successfully passed acceptance and was awarded by the Ministry of recovered waste heat from the combustion exhaust gas of four continuous lines by installing heat
Industry and Information Technology National Typical Cases of Power Demand-Side Management exchangers. Jiangsu Shuanghuan recovered waste heat from the combustion exhaust gas of heat
in the Industrial Sector (2025). This case adopted a comprehensive strategy of “equipment energy- treatment furnaces by installing heat exchangers. The above waste heat was all used to prepare
saving retrofitting + intelligent system operation and maintenance”, adding centrifugal units, hot water for cleaning machines, reducing the electricity consumption for electric heating of hot
variable-frequency screw air compressors and intelligent air-compressor control devices, and water for the cleaning machines, with annual electricity savings of approximately 890,000 kWh.
removing inefficient air-compressor units. Following the retrofit, the overall energy consumption of
the compressed air system was expected to decrease by approximately 30%, with annual electricity
savings exceeding 4.60 million kWh.
Jiangsu Shuanghuan
Shuanghuan Headquarters Jiaxing Shuanghuan
Rendering of the Centralised Air Supply Effect for Air Compressors Supplementary
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Shuanghuan Driveline 2025 Energy Conservation and Emission Reduction Projects (based on incomplete statistics)
Annual Energy Savings/Total Reduction in Reduction of GHG
No. Project Category Project Name Project Content
Pollution Emissions Emissions(tonnes CO₂e)
Production process Agitator retrofits in the quenching Shut down two oil agitators for each multi-purpose furnace, Annual electricity cost savings of
optimisation area of multi-purpose furnaces while reduced the other two agitators. RMB546,000
Reduced electricity consumption by 2.4
Modified fixture rack and adjusted the workpiece placement
Production process Improved efficiency and reduced million kWh per year
optimisation equipment investment Reduced chemical carburising agent costs
Increased in the charging temperature to reduce the cycle time
by RMB240,000 per year
Production process Heat treatment process Increased the temperature and carbon potential to reduce and
optimisation optimisation and consolidation consolidate the process cycle period
Equipment On-site capacitor compensation for
Installed an on-site compensation capacitor cabinet on the Approximately 28,000 kWh saved in total
normalising line to reduce line losses each month
upgrades Forging Branch Plant
Equipment and Added dehumidifiers to the CMM Estimated reduction in carbon emissions
installation upgrades and gear inspection instrument generated by 60,000 kWh of electricity
Equipment Added dehumidification equipment
Estimated reduction in carbon emissions
generated by 60,000 kWh of electricity
upgrades constant-temperature room
Energy Added an automatic air shut-off function to the programme, so
Hobbing machine air-blowing cut- 154,700 m? of compressed air saved
off modification annually, reducing costs by RMB15,000.
enhancement air supply was automatically cut off
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Metrics and Targets
Energy use situation
Shuanghuan Driveline Energy Use Metrics
Metrics Unit 2023 2024 2025
Comprehensive energy
tce 52,431.90 61,096.14 71,262.87
consumption (equivalent value)
Of which: Direct energy
tce 3,877.98 4,293.99 9,232.77
consumption
Indirect energy consumption tce 48,553.92 56,802.15 62,030.10
Comprehensive energy consumption
tce 126,867.00 155,889.63 196,543.94
(calorific value equivalent)
Natural gas 10,000 Nm? 297.91 334.57 379.27
Gasoline t 62.21 36.96 26.56
Diesel t 114.77 121.40 138.78
State grid electricity MWh 395,068.54 462,181.82 430,720.10
Renewable electricity MWh 9,589.47 6,649.81 109,687.86
Comprehensive energy tce/RMB10,000 industrial output 0.07 0.07 0.08
consumption intensity (equivalent
value) tce/RMB10,000 industrial value added 0.18 0.17 0.17
Comprehensive energy tce/RMB10,000 industrial output 0.17 0.17 0.21
consumption intensity (calorific
value equivalent) tce/RMB10,000 industrial value added 0.43 0.44 0.48
Note: In order to further enhance the consistency and comparability of the data statistical calibre, we recalculated the comprehensive energy consumption data for 2025 in accordance with GB/T 2589—2020 General Rules for Calculation of the
Comprehensive Energy Consumption. Compared with 2024, the main adjustment to the statistical calibre for 2025 was the inclusion of renewable electricity consumption within the scope of comprehensive energy consumption calculations. As a result,
there are differences in the statistical calibre of the comprehensive energy consumption and related intensity metrics for 2025 compared with data from previous years. Please take note when using these data.
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Clean energy usage status
Shuanghuan Driveline’s energy consumption is mainly electricity and natural gas, of which electricity accounts for approximately 93% of total energy consumption. At present, we are gradually reducing fossil
energy consumption through electrification of end-use energy, increasing the proportion of green electricity used, and optimising our energy mix.
Energy consumption indicators for Shuanghuan
Disclosure Item Unit Data Standard coal equivalent data(tce) Proportion of clean energy(%)
Clean energy consumption tce 13,480.64 13,480.64 18.9
Of which: Solar energy MWh 109,687.86* 13,480.64 18.9
Note: Equivalent to a reduction of 58,200 tonnes of CO2 emissions.
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Water Resource Utilisation
As of the end of the reporting
Target Review period, Shuanghuan
Driveline’s water resource
Metrics 2025 Target Completion Status Notes utilisation metrics and water-
saving targets are shown in
Due to temperature fluctuations the table below.
and other stage-specific factors,
Total water use water use intensity did not
Decrease by
intensity Not achieve the expected reduction
(tonnes/RMB10,000 completed target. The Company will
year continue to improve its water
output value)
management mechanisms
going forward.
Total water withdrawal (m3)
Note. The scope of waste gas pollutant emissions covers nine sites: the group headquarters, Zhejiang Total water use intensity (m3/RMB10,000)
Shuanghuan, Fine Motion Technology, Dalian Huanchuang, Fundrive Technology, Jiaxing Shuanghuan,
Jiangsu Huanou, Jiangsu Shuanghuan, and Chongqing Shuanghuan.
Shuanghuan Water Resource Utilisation
Shuanghuan Driveline applies WRI’s Aqueduct water risk tool to conduct annual water risk assessments
for nine production sites, identifying related risks including water quantity, water quality, regulatory and Note: Total water consumption = total water withdrawal - total water discharge. Total water use intensity = total water
reputational risks, and, based on the results, implements tiered and differentiated management. The withdrawal/RMB10,000 output value or total water withdrawal/RMB10,000 industrial output. To further standardise the
Company strictly complies with relevant laws and regulations on water resources management and water metric name and improve disclosure accuracy, we have corrected “total water consumption intensity” in the 2024 ESG
pollution prevention, and has established the Energy and Water Conservation Management Measures, Report to “total water use intensity”.
integrating water-saving requirements into the entire process of production, operation, office, and life. For
sites with different risk levels, we adopt measures such as water-saving target management, separation
Water Use Metrics and Water-saving Targets
of rainwater and sewage, wastewater reuse, rainwater harvesting, and the development of water-efficient
factories, continuously improving water-use efficiency and the level of refined management. At the same
time, we continuously promote company-wide water conservation initiatives through process optimisation, Metrics Unit 2025 Progress 2026 Target
recycling and reuse, replacement of water-saving devices, and water conservation awareness-raising.
Total water
Case Jiaxing Shuanghuan Wastewater Recycling and Reuse withdrawal
m? 966,749 /
Total water
In 2025, Jiaxing Shuanghuan carried out a wastewater m? 399,359 /
consumption
recycling and reuse retrofit by installing supporting external
water storage tanks and building a dedicated reuse pipeline Total water
network. Reclaimed water that met the treatment standards m? 567,390 /
discharge
replaced part of the tap water and was used for toilet flushing
in washrooms and cleaning operations in the container- Total water use m?/RMB10,000 industrial A 15% decrease
washing room. Following the retrofit, cascade utilisation intensity output compared with 2024
of water resources was achieved, significantly reducing
freshwater withdrawals, with estimated annual water savings Total water use m?/RMB10,000 industrial
of approximately 10,950 tonnes. intensity value added
Jiaxing Shuanghuan Wastewater
Recycling Equipment
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Circular Economy
Impact, Risk, and Opportunity
Target Review Management
In the manufacturing process of major products such as gears, Shuanghuan Driveline
mainly consumes raw materials including steel, lubricating oil, and packaging
Metrics 2025 Target Completion Status Notes
materials. During production and manufacturing, by-products such as metal shavings,
waste cutting fluid, and packaging waste are generated. Focusing on the above
Waste recycling and Increase by 3%
/ resource use and production by-products, Shuanghuan continues to enhance
reuse volume year-on-year
resource utilisation efficiency in three areas: reduction of production materials and
product lightweighting, resource utilisation of production by-products, and circular
packaging and logistics waste reduction, gradually establishing a circular economy
management model covering product design, manufacturing and production, and
Strategy logistics turnover.
Reduction Through process improvements such as optimising
forging blanks and changing die forging to turning
Description of Potential Time forging, the Company reduces material usage in key
Type Business and Financial Impacts parts. Simultaneously, the Company coordinates with
Risks/Opportunities Dimension
upstream to optimise material composition ratios,
If our resource utilisation and waste reduction
performance is insufficient, this may increase costs for reducing raw material consumption from the source.
Stricter environmental
hazardous waste disposal, environmental retrofitting, and Medium
regulatory and
Risk compliance management. During the reporting period, term(3-10 The Company combines finite element analysis and
waste management the general waste generation intensity decreased by years)
Lightweight design
topology optimisation methods to carry out structural
requirements 6.3% year-on-year, and the volume of waste recycled and optimisation for multiple products, reducing product
recovered increased by 3% year-on-year. weight while ensuring product strength and process
Increased investment Promoting waste oil recovery, waste material reuse, reliability.
Medium
demand for recycling and upgrades to circular equipment requires upfront
Risk term(3-10
technologies and investment, which may increase capital expenditure and
years) The Company continues to enhance the level of
equipment retrofit costs in the short term. Recycle
circular utilisation in the production and logistics
processes. On the one hand, we promote the
Improved resource Through structural optimisation, material substitution,
Medium upgrading of transport packaging materials from
utilisation efficiency and lightweight design, we can reduce raw material
Opportunity term(3-10 single-use cardboard, wooden pallets, etc. to
due to reduction consumption, decrease waste generation, and enhance
years) reusable packaging such as plastic pallets, PP
design the product’s green competitiveness.
reusable linings and PP packaging boxes, reducing
the consumption of single-use packaging materials
Enhanced green Integrating circular economy concepts into design, and lowering packaging material costs; on the other
manufacturing manufacturing and equipment renewal helps improve Medium hand, we carry out resource recovery and utilisation
advantages through Opportunity resource efficiency and environmental performance, and term(3-10 of production by-products such as grinding oil. By
circular economy strengthens our competitive advantage in low-carbon years) recovering grinding oil from grinding wheel ash and
practices supply chains and green manufacturing.
downgrading it for reuse as hydraulic oil, we reduce
hazardous waste generation by 180 tonnes per year
and reuse 40 tonnes of hydraulic oil.
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Recycling and Reuse of Transport Packaging
Case Materials at Jiaxing Shuanghuan Metrics and Targets
As of the end of the reporting period, the metrics and targets for Shuanghuan Driveline’s circular
Jiaxing Shuanghuan switched its transport packaging materials from wooden pallets and wooden
economy were as follows.
crates to plastic pallets that can be reused multiple times, and established a closed-loop system of “recovery-
cleaning-inspection-redeployment”. During the reporting period, consumption of wooden pallets decreased
Shuanghuan Driveline Circular Economy Metrics and Targets
by 1,573 tonnes and cartons by 393 tonnes, and packaging material costs fell by RMB3.14 million.
Metrics Unit 2024Progress 2025Progress 2026Target
A 5% increase
Waste recycling and
tonnes 26,327.40 27,143.76 compared with
reuse volume
Before After
Promotion of Reusable Packaging from Domestic
Case Sites to the Evoring Site
During transportation from our domestic sites to the EVORING site, Shuanghuan Driveline progressively
replaced the original disposable inner liner cardboard and disposable cardboard packaging boxes with
PP reusable inner liners and PP reusable packaging boxes, promoting an upgrade of cross-site logistics
packaging towards reusability. This initiative helped reduce the consumption of disposable packaging
materials, lower packaging material costs, and further enhance the level of reuse in logistics operations.
PP Reusable Inner Liner + PP Layered Board
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Unified in
Perfect Harmony
The number of female employees at
Shuanghuan has increased for three
Employee satisfaction scored 84 Rural revitalisation and social
welfare investments both
points, 1.3 points above the target
consecutive years. increased by
value.
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Governance
Shuanghuan Driveline has always regarded employees as the core foundation of the Company’s sustainability, and has incorporated the
protection of employee rights and interests, talent development, employee care, and occupational health and safety into a unified employee
Sector goals
governance system. The Company strictly abides by relevant laws and regulations on labour employment, equal employment, women’s
rights protection, protection of minor workers, social insurance, safe production, and occupational disease prevention. It has formulated
and implemented documents such as the Social Responsibility Manual, the Prohibition of Forced Labour Management Procedure, the Recruitment
Strengthen the occupational
Management Policy, and the Work Safety Standardization Management Manual. Additionally, through the Code of Conduct for Social Responsibility
health and safety defence line,
for suppliers, it extends compliance with labour and human rights requirements to the supply chain.
establish a rural empowerment
mechanism, and achieve symbiotic Centred on the long-term talent development needs, the Company continues to optimise the governance mechanism for campus
development in which employees recruitment, advances group-wide coordination and tiered and categorised recruitment management, and, while ensuring the scale of
feel secure and rural revitalisation recruitment, enhances the quality of incoming graduates, focusing on the deployment across key universities and strengthening employer
advances. brand building. Shuanghuan adheres to a people-oriented approach, and continuously promotes the integration of diverse cultures among
groups such as female employees, Chinese employees working overseas, expatriate employees, and employees with disabilities, and
improves the medical and health protection system for employees. Meanwhile, we continue to focus on family-friendly needs such as holiday
Material topics childcare for employees’ children.
Finally, in terms of production safety, each production site has established a Production Safety Management Committee and a Production
Safety Office, implementing safety responsibilities at every level. With “zero safety incidents, zero environmental pollution, and zero
Employee rights and
employee injuries” as the annual targets, we continue to create a safe, healthy, and well-protected development environment for employees.
development
Occupational health and
safety
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Protection of Employee
Rights and Benefits
Strategy
Description of Potential Time
Type Business and Financial Impacts
Risks/Opportunities Dimension
The manufacturing industry has a relatively high reliance
Loss of skilled on frontline skilled workers and technical backbones.
If employee rights and interests are not adequately Short term
employees or reduced Risk
protected, this may lead to the loss of staff in key (1-3 years)
workforce stability positions and fluctuations in yield rate, as well as higher
costs for recruitment, training, and replacement staffing.
With changes in the labour market and rising career
Employees’ increased aspirations among the new generation of employees, Medium
expectations for Risk employer attractiveness may decline, affecting the ability term(3-10
fairness and benefits to attract high-skilled talent and, in turn, weakening years)
organisational stability and talent pipeline capacity.
Employer branding Continuously enhancing the level of employee rights and
interests protection helps strengthen the enterprise’s Medium
enhancement due
Opportunity attractiveness to R&D, technical, and skilled talent, reduce term(3-10
to employee-friendly long-term employment costs, and support the Company’s years)
management technological upgrading and global development.
By strengthening support measures for groups such
as female employees, employees with disabilities, and
Organisational foreign employees, and improving health protection,
resilience family-friendly policies, and care mechanisms, we can
Medium
help enhance employees’ sense of belonging and
improvement due to Opportunity term(3-10
team collaboration efficiency, strengthen organisational
diversity, inclusion and years)
resilience, and enhance the Company’s corporate
employee care social responsibility image. In 2025, the number of
Shuanghuan’s female employees increased for the third
consecutive year.
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Impact, Risk, and Opportunity Management
Employee communication Basic rights and interests protection
The Company attaches great importance to the establishment of employee Employment in compliance with the law
communication mechanisms, and has systematically built a multi- and equal employment
tiered, multidimensional communication channel system. We continue
to optimise the internal information flow environment, and enhance
employees’ sense of participation and belonging. According to the The Company adheres to the principle of equal
Communication Management Procedure, the Company has established opportunities. In recruitment, training, promotion,
a multidimensional communication mechanism covering daily feedback, Anti-discrimination and anti-harassment
remuneration and dismissal, we base decisions
special communication, and institutionalised expression for all employees primarily on job competencies and performance,
safeguards
(including official employees, temporary workers, and interns). In terms of eliminate discrimination on the grounds of gender,
channel setup, the Company has established an employee suggestion box ethnicity, religious beliefs, age, health condition
and opened a dedicated email, with designated personnel responsible The Company advocates an organisational
or disability, and strictly implement statutory
for collection, sorting, and feedback. Meanwhile, through departmental culture of mutual respect and equal
minimum working age and identity verification
meetings, special meetings, employee discussions, face-to-face exchanges collaboration, and opposes any form of
mechanisms, strictly prohibiting forced labour and
with senior executives, human resources communication meetings, and discrimination, insult, threat, or harassment.
child labour.
performance and cross-level interviews, two-way interaction between the The Company has established an employee
Management and employees is realized. grievance and whistleblowing mechanism
Employment contracts and remuneration to ensure that employees can report issues
In terms of institutionalised communication, we regularly conduct through accessible channels, and that relevant
employee satisfaction surveys. In 2025, employee satisfaction scored 84.0,
protection
complaints are promptly investigated and
higher than the target value of 82.7. The survey covered aspects such addressed.
as corporate culture, working environment, remuneration and benefits,
The Company signs written labour contracts
career development, teamwork, management decisions, and training and
with employees in accordance with the law, clearly
promotion. In response to the issues identified, the Company formulated a
defining the rights and obligations of both parties.
dedicated improvement plan and continued to promote its implementation.
Remuneration payments strictly comply with the
At the same time, we convene an annual employee representative
relevant provisions on minimum wage and overtime Working hours and holidays
conference, with the labour union following up on relevant matters, to
pay, ensuring that wages are paid in full and on time.
safeguard employees’ lawful participation in the Company’s democratic
management and to promote the timely feedback of employees’ views
and their translation into improvement actions. During the reporting period, Protection of special groups The Company implements the standard or
there were no significant labour disputes. comprehensive working hours system in
accordance with the law, standardised overtime
approval, and pays remuneration in accordance
The Company strengthens protection for female with the law. Employees are entitled by law
with the law. We implement special safeguarding marriage leave, maternity leave, paternity leave,
measures in terms of labour intensity, working
and bereavement leave.
employee satisfaction scored environment, and arrangements during pregnancy
and lactation, thereby safeguarding employees’
higher than the target value of 82.7 lawful rights and interests as well as their physical
and mental health.
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Employee Recruitment and Development
Target Review
Metrics 2025 Target Completion Status Notes
Number of employee A 5% increase
/
training sessions year-on-year
Training in 2025 shifted from relying
Employee training A 5% increase on external providers to being
Not completed
expenditure year-on-year mainly internal training, hence
training expenditure decreased
Strategy
Description of Potential Time
Type Business and Financial Impacts
Risks/Opportunities Dimension
If we fail to respond adequately in campus recruitment,
Intensifying social recruitment, and the recruitment of talent for key
Medium
competition for talent positions, recruitment and labour costs may rise. Our
Risk term(3-10
in the high-end campus recruitment for undergraduate and master’s
years)
manufacturing sector students at Shuanghuan has undergone four years of
unified planning and coordination by the group.
Increased recruitment If recruitment channels, university–enterprise
difficulty due to partnerships, and employer branding are inadequate, this Medium
changes in new- Risk may reduce the enterprise’s ability to attract high-quality term(3-10
generation job- graduates and high-potential talent, affecting the quality years)
seekers’ preferences. of the talent reserve.
Enhanced Establishing a tiered development and succession
Medium
organisational stability mechanism spanning fresh graduates, skilled core staff, and
Opportunity term(3-10
due to talent pipeline mid-to-senior managers will help reduce the risk of gaps in
years)
development key positions and lower long-term recruitment costs.
Enhanced career Through multi-channel career development, mentorship
development and apprenticeship, and systematic training, we can Medium
framework to Opportunity enhance employees’ sense of achievement in growth and term(3-10
improve employer belonging, strengthen our employer brand, and attract more years)
attractiveness outstanding talent to join.
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Impact, Risk, and Opportunity Management
Talent Recruitment Channels
Campus recruitment Social recruitment
Shuanghuan Driveline’s campus recruitment for undergraduate and master’s students has been carried
The Company adheres to the recruitment principle of “internal first, external second”,
out for four consecutive years under centralised group-level coordination and operation, forming a
prioritising the fulfilment of position requirements through internal competition,
relatively mature recruitment model that has basically met our staffing needs.
promotion and transfer, and carries out social recruitment through online recruitment,
headhunters, internal referrals and other channels. For core and key positions, we
implement a tiered interview, approval, and background check mechanism to ensure
that the recruitment process is professional and compliant. Meanwhile, the Company
Progressive development of university-enterprise relations continues to develop an external talent pool, maintaining a dynamic pipeline of
management, technical, skilled, and international talent, thereby enhancing the stability
Based on our campus recruitment needs, the implementation status of each unit, and an analysis of
and flexibility of talent supply.
the universities from which previous cohorts are sourced, we progressively identify key universities
that closely match our talent needs, and focus on these key universities to develop long-term, stable
university–enterprise relations.
Digitisation of campus recruitment promotion and recruitment processes
In response to the trend towards online job-seeking behaviour among the new generation and the Internal development
limitations of offline recruitment in terms of interviewer collaboration, time commitment, and travel costs, the
Company continues to advance the digital transformation of campus recruitment promotion and recruitment
Shuanghuan Driveline continues to improve its internal training and development
processes. Building on the stable operation of online channels for the autumn 2025 campus recruitment,
mechanisms, and has established diversified career development pathways that
the Company further strengthens multi-round and timeliness management of online operations. Based on
run in parallel across skills, management, and professional tracks. For technical
students’ job-seeking cycles and peak periods for industry campus recruitment, we expand outreach and
workers, we implement a development model that combines skills grade progression,
improve recruitment precision, attracting students who meet our needs to submit applications.
transitions to the management pathway, and deepening expertise in specialised
fields. Through mechanisms such as skills certification, pre-job training, and mentoring,
University-enterprise cooperation
we support employees in developing from technical roles to management roles.
Drawing on the campus recruitment experience of industry benchmark enterprises, through project This development system has delivered positive results. At present, 87.6% of our
cooperation, brand penetration, corporate visits, and other means, we have established closer cooperative production management cadres (including key management positions such as branch
relationships with target institutions. While continuously supplying the enterprise with highly suitable talent, general managers and workshop directors) have been promoted internally from
we provide university students with internship and practical training platforms, and promote the formation of frontline technical workers.
a university-enterprise collaborative, mutually beneficial talent development mechanism.
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Talent pipeline development
Since 2012, Shuanghuan Driveline has gradually established an internal trainer team comprising
middle and senior management cadres, technical experts, key business personnel, and craftsmen, As of the end of 2025
and has advanced the development of the Lighthouse Talent Training Camp internal trainer
development and rating system. The Company supports the implementation of the “master-
apprentice” model, creating a positive atmosphere for the inheritance of skills and knowledge, the number of learners was 4,052, and total learning time was 30,534 hours.
thereby promoting efficient transmission of knowledge and skills and laying a solid foundation for
talent reserve and innovation capabilities.
At the same time, in response to sustainable development needs, the Company has established
a management cadre training system covering reserve cadres through to senior executives,
“Cloud Academy”: Building a Governable and
Case Assessable Digital Learning Platform namely “Fledgling Eagle, Soaring Eagle, Sharp Eagle, Mighty Eagle, and Elite Eagle”. With cadre
standards and the building of a reserve talent pipeline as its core, we continue to improve our talent
development mechanisms. In 2025, we organised over 8,000 training sessions, with total training
Shuanghuan Driveline has established the Shuanghuan Driveline Cloud Academy by leveraging hours amounting to 379,610 person-hours.
the “Huanhuan Academy” workstation mini-program on WeCom and the Xuanxing Cloud Learning
App. The Company takes stock of, organises, and categorises Shuanghuan Driveline’s existing
internal knowledge system and course materials, and has formulated follow-up plans for course
development and course introduction, thereby creating a systematic knowledge system plan. The
Company strengthens operational management of the learning process through methods such as
resource inventory, process recording, data tracking, and phased control, improving controllability
of project execution and training efficiency. As of the end of 2025, the number of learners was 4,052,
and total learning time was 30,534 hours.
Talent Development Training Programme for Different Levels
we organised over 8,000 training sessions, with total training hours amounting to
Schematic Diagram of the Cloud Academy Interface
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Strategic talent reserve
University-enterprise collaboration University-enterprise cooperation
Shuanghuan Driveline regards university-enterprise collaboration as an important lever for
In response to the development needs of the gear industry, Shuanghuan Driveline has
talent reserve and technological innovation. In 2025, the Company continued to carry out
continued to build a multi-tier ecosystem of collaboration with educational institutions,
diversified industry-university-research collaborations, successively organising visits for
forming a cooperative network covering research-oriented, comprehensive application-
teachers and students from universities and colleges to tour our plants, conducting themed
oriented, and higher vocational skills-oriented institutions. In terms of high-end research and
exchanges at universities and colleges, and holding discussions focusing on the cultivation
development and talent introduction, the Company collaborates with universities such as
of skilled talent, R&D of new energy transmission technologies, and applications of materials
the Technical University of Munich on technical challenges and project applications. Relying
science. These activities further broadened our talent supply channels, promoted the
on national postdoctoral research workstations, it carries out joint postdoctoral training with
transformation of scientific research achievements into industrial applications, and achieved
Zhejiang University, Zhejiang University of Technology, and Zhejiang Sci-Tech University,
two-way empowerment of resources between universities and enterprises.
cumulatively training nearly 20 postdoctoral fellows.
Meanwhile, based on the national excellent engineer training programme, the Company
implements a “3+1” joint training mechanism with universities such as Jiamusi University. It
has established a master’s workstation with Henan University of Science and Technology
and a professional master’s point with Taizhou University, integrating enterprise projects,
curriculum systems, and practical training. Additionally, the Company has also established
a micro-specialty in gear engineering with Gannan Science and Technology College,
continuously expanding industry talent training channels. Through diversified university-
enterprise cooperation, Shuanghuan Driveline continuously improves our strategic talent
reserve system, laying a solid foundation for technological upgrades and long-term
development.
Shuanghuan Driveline University-Enterprise Collaboration Photo
Management talent development
Middle managers are the key pivot connecting the Company’s strategy with frontline execution.
Shuanghuan Driveline’s middle management leadership training programme adopts a development
model of a two-year cycle and systematic progression. Centring on strategic alignment,
management implementation, and capability enhancement, it builds a middle management team
with both strategic vision and strong execution capabilities.
To date, this programme has successfully delivered multi-cycle development, supplying the Middle Management
Company with a large number of mid-level key talents with both strategic vision and management Leadership Training
depth. This has effectively supported the implementation and execution of the Company’s strategic
priorities, including intelligent manufacturing and global expansion, and has become a core engine
for Shuanghuan Driveline’s talent pipeline development.
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Metrics and Targets
Employee Number Metrics
Type Unit 2023 2024 2025
Total number of
persons 7,263 8,333 8,982
employees
Male and Number of 42
Among them: Male persons 5,448 6,344 6,907
Female Employees by
Employee Ratio Age Group
Female persons 1,815 1,989 2,075
Under 30 years old persons 3,017 3,608 3,734
Under 30 years old 31-40 years
Male Female
Over 50 years old persons 549 611 680
Employee Training Metrics and Targets
Metrics Unit 2024 Progress 2025 Progress 2026 Target
An increase of 10%
Number of employee Person-
training sessions time
Employee training
RMB10,000 239.41 157.59 / 2025
expenditure
Employee training Annual growth rate
% 82.7 86.71
coverage rate of 2.3% Trend Chart of Changes in the Number of Female Employees
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Employee Well-being and Care
Physical and Mental Health Protection Care for Employees’ Children
Shuanghuan Driveline continues to improve its employee care and protection mechanisms, To help alleviate employees’ childcare pressures during the summer holidays, the Zhejiang Shuanghuan
incorporating hardship assistance and health management into the employee well-being system. The and Jiaxing Shuanghuan set up the “Huanhuan Class”, organising activities such as homework tutoring,
labour unions at each of our sites routinely provide assistance to employees in hardship and established reading, games, film screenings, study tours, and public welfare lectures on safety. This not only enriches
a Care Fund to support the families of employees facing major illnesses or sudden difficulties. In terms of employees’ children’s holiday lives, but also reduces the caregiving burden on employees’ families.
health protection, in 2025, the Company introduced supplementary medical insurance for employees,
and installed fitness facilities, nursing rooms, blood pressure monitors, AED defibrillators, and other
equipment in office and production areas; in addition, taking into account seasonal health risks, we
provided protective supplies and health reminders in a timely manner to enhance employees’ day-to- Water Safety Training on the “Six No’s” Principles for
day health protection and emergency response capabilities. Case Drowning Prevention
Synergistic Management of Occupational Health Check- On 17 July 2025, the Company, together with Yuhuan City Jusha Public Welfare and the Sunshine
Case ups and Seasonal Health Risks Rescue Team, carried out a drowning prevention safety training activity for more than 40 children
from the charity after-school care class. During the training, the rescue team, drawing on real cases,
In early 2025, against the backdrop of a nationwide rise in acute respiratory infectious diseases, explained the dangers of drowning in plain language, with a particular emphasis on the “Six No’s”
Shuanghuan Driveline promptly procured protective supplies and commonly used medicines, and distributed principles for drowning prevention. They also reinforced the children’s understanding and memory
them to all subsidiaries and departments. Meanwhile, in conjunction with our occupational health check-up through Q&A interaction, and the children on site actively participated in the learning.
and health promotion mechanisms, we reminded employees to strengthen personal protection, maintain a
healthy lifestyle, and seek medical attention promptly when relevant symptoms occurred.
Shuanghuan Driveline Occupational Health Check-ups Sunshine Rescue Base
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Multicultural Integration
Protection of female employee rights Employment support for employees in difficulties Management of overseas and expatriate employees
The Company strictly complies with the Protection of The Company actively fulfils its social responsibility by signing The Hungarian company, Evoring, uses cultural integration
the Rights and Interests of Women Law of the People’s employment service agreements for disabled persons in collaboration as a key lever and continued to foster a diverse, cross-
Republic of China and relevant local regulations, and has with production sites, providing standardized and stable job positions for cultural exchange environment. During traditional
formulated and implemented the Regulations on Marriage disabled employees, ensuring their legal rights, and promoting diverse Chinese festivals, Chinese employees and Hungarian
Leave, Maternity Leave and Paternity Leave of Shuanghuan and inclusive employment practices. colleagues jointly carries out cultural experience activities
Driveline in 2025, systematically safeguarding employees’ In addition, we continue to provide employee and community support such as making dumplings and mooncakes, sharing the
lawful rights and interests during the marriage and through the Shuanghuan Love Foundation. The Shuanghuan Love connotations of Chinese culture; during local festivals
childbirth stage, including arrangements for marriage Foundation was established in 2016, which focuses its support on such as Christmas and the Harvest Festival, Hungarian
leave, maternity leave, nursing leave, and parental leave. employees in hardship and out-of-school children in the Taizhou and employees invite Chinese colleagues to participate in
During the relevant leave entitlements, employees’ Huai’an areas, and takes fairness, openness, and impartiality as the three local folk activities. Through two-way interaction, we
salaries, bonuses, and benefits are paid as normal in core principles for its operation. The Love Foundation’s funding mainly continuously enhance understanding and respect among
accordance with the regulations. At the same time, we comes from donations made in the Company’s name, donations from employees from different cultural backgrounds, fostering
set up nursing rooms in office and production areas to members under the Company’s equity incentive scheme, employees’ an inclusive and mutually trusting team atmosphere, and
support employees in better balancing work and family charitable contributions, and voluntary donations in various forms. In 2025, providing solid talent support for the steady development
responsibilities. the Shuanghuan Love Foundation provided RMB10,000 in condolence of our overseas business.
money to employees with critical illnesses.
Hungarian Company Evoring Activities
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Employee Team-Building Activities
Shuanghuan Driveline has built a communication bridge among employees and conveyed humanistic care through diverse and enriching team-building activities, actively fostering a harmonious team atmosphere.
“Vibrant Workplace” Sports Festival:
Happy Work, Healthy Life
In 2025, Shuanghuan Driveline launched the “Vibrant Workplace” Sports Festival across its subsidiaries,
organising sporting activities such as tug-of-war, badminton, and basketball to encourage employees
to actively participate in sports and enhance communication. We boosted employees’ enthusiasm for
participation by setting up team awards and participation awards, strengthened cross-departmental
interaction and team cohesion, and promoted the implementation of the “Happy Work, Healthy Life” concept.
Zhejiang Shuanghuan Sports Festival Zhejiang Shuanghuan Sports Festival
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Occupational Health and Safety
Impact, Risk, and Opportunity
Strategy Management
Revision of safety policies
Description of Potential Time Shuanghuan Driveline continues to improve its safety production management
Type Business and Financial Impacts
Risks/Opportunities Dimension system. Building on the Work Safety Standardisation Management Manual, we
added the Emergency Response Plan for Radiation Incidents and the Lockout
Stricter manufacturing Gear manufacturing involves processes such as heat
treatment and cleaning. If safety management and and Tagout Procedure, with a focus on covering roles with radiation risks
safety supervision
occupational health protection are inadequate, we may Short term and automated production line maintenance operation scenarios, further
and accountability Risk
face rectification requirements, penalties, production (1-3 years) strengthening safety protection for personnel engaged in high-risk operations.
requirements continue suspension and reputational loss, while also increasing
to be implemented At the same time, the Company revised and improved nine safety management
compliance investment and management costs.
policies, including the Safety Management System for the Heat Treatment Workshop,
the Waste Gas Pollution Control Management Procedure, and the Waste Pollution
Extreme weather such as typhoons, rainstorms, and Control Management Procedure, continuously refining operational requirements
Extreme weather and high temperatures may affect plant safety, equipment and management responsibilities and effectively reducing safety risks in the
emergencies increase operation, hazardous chemical management, and Short term
Risk production process.
pressure on safe employees’ travel. If response measures are inadequate, (1-3 years)
operations this may lead to work stoppages, escalating losses, and
higher recovery costs.
Occupational health protection
Occupational health
protection enhances Strengthening occupational health monitoring, personal Shuanghuan Driveline strictly implements occupational health management
Medium
protective equipment, and job-role fit helps to reduce the requirements by conducting pre-employment, on-the-job, and post-employment
employee stability Opportunity term(3-10
risks of occupational diseases and work-related injuries,
and organisational years) occupational health examinations for employees in positions exposed to
and enhances employees’ sense of safety and belonging.
resilience occupational hazard factors, such as heat treatment, cleaning and packaging,
and physical and chemical testing. We have also established individual
occupational health surveillance files (covering employees’ basic information,
Continuing to advance the Safety Production Month, monitoring results of occupational disease hazard factors in the workplace,
Safety culture training and drills, hazard rectification, and a full-staff conclusions from each occupational health examination, etc.), thereby achieving
development participation mechanism will help enhance our safety full-process traceability management. The Company carries out an assessment
Medium
governance image and strengthen the trust of customers,
enhances trust among Opportunity term(3-10 of the current status of occupational disease hazards once every three years,
employees, and regulatory authorities. In 2025, we
customers and years) conducts testing of occupational disease hazard factors once a year, and, in
cumulatively carried out more than 20 safety training
stakeholders sessions throughout the year, with a total training duration conjunction with job risk assessments, provides employees free of charge with
of 6,987 person-hours. personal protective equipment such as earplugs, safety shoes, and protective
goggles. At the same time, by putting in place warning signs for occupational
disease hazards and strengthening risk notification and job suitability management,
we effectively safeguard employees’ occupational health rights and interests.
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Safety training and emergency response capacity building Safety hazard inspection and rectification
In 2025, through mechanisms such as comprehensive safety inspections prior to holidays,
During the 2025 Safety Production Month, Shuanghuan Driveline organised a series of safety
special inspections conducted by external experts, inspections of hazardous chemicals in
awareness and education activities, conveying safety concepts and regulatory requirements
laboratories, routine inspections by the EHS Department, and on-duty inspections by cadres,
to the production frontline. In addition to the themed activities, the Company established a
Shuanghuan Driveline continued to advance the identification and rectification of potential
regular safety training and emergency drill mechanism, and held more than 20 safety training
safety hazards, with a total of 745 safety and environmental potential hazards of various
sessions throughout the year, with total training duration of 6,987 person-hours, continuously
types rectified throughout the year. Among them, comprehensive safety inspections prior to
enhancing employees’ safety awareness and emergency response capabilities.
holidays eliminated 307 potential hazards; external experts compiled a list of 17 major hazards,
and 46 hazards were identified and rectified during the special inspection of electrical safety;
eight hazards were identified and rectified in the special inspection of laboratory hazardous
and 210 hazard items, respectively. Through a combination of professional supervision and
full staff participation, we continuously enhanced our safety governance capabilities. The
The Company established a regular safety training and emergency drill Company is simultaneously deepening the construction of its occupational health and safety
mechanism, and held more than 20 safety training sessions throughout the year, system. Except for one subsidiary still in the process of certification, all other subsidiaries
have obtained ISO 45001:2018 Occupational Health and Safety System certification. The
with total training duration of 6,987 person-hours Company will continue to improve system construction, comprehensively enhancing the level
of environmental and occupational health and safety management.
Metrics and Targets
Everyone Talks About Safety, Everyone Can Respond to Occupational Health and Safety Metrics
Case Emergencies: Identifying Safety Hazards Around Us
Metrics Unit Data of 2024 Data of 2025
During the 2025 Safety Production Month, Shuanghuan Driveline focused on the theme “Everyone Talks
About Safety, Everyone Can Respond to Emergencies: Identifying Safety Hazards Around Us”, with each Investment amount in employees’
work-related injury insurance liability RMB10,000 569.40 679.55
subsidiary carrying out a variety of safety activities. Zhejiang Shuanghuan strengthened communication
insurance
of safety requirements through a kick-off meeting; Jiangsu Shuanghuan prioritised flood-control
inspections and emergency preparedness arrangements; Jiaxing Shuanghuan organised a safety Coverage rate of employees’ work-
% 100 100
knowledge quiz and fire drills; and Fundrive Technology reinforced full employee participation through related injury insurance
safety commitments and pledges. These activities helped embed safety concepts on the frontline,
continuously enhancing employees’ safety awareness and emergency response capabilities. Note: Shuanghuan does not involve high-risk positions and has not been included in the industry scope subject
to mandatory work safety liability insurance. Therefore, this item is not disclosed.
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Rural Revitalisation
Case Paired Assistance to Xinjiang Shaya County Public Welfare Project
Target Review
Shuanghuan Driveline actively responded to the government’s policy call and, in line with the Key Points
Metrics 2025 Target Completion Status Notes for Opening-up and Cooperation in the Provincial Economic and Information Technology Sector for 2025 and the
Number of beneficiaries Key Points for Pairing Assistance and Pairing Cooperation in Jiaxing for 2025, donated for the public welfare
A 3% increase
of rural revitalisation / project in Shaya County under Jiaxing City’s paired assistance to Xinjiang.
year-on-year
initiatives
Industrial Revitalisation
Shuanghuan Driveline actively responds to the national rural revitalisation strategy and regional
coordinated development policies by integrating industrial empowerment, public welfare support, and
regional collaboration, and explores diverse pathways for corporate participation in rural revitalisation.
Case Rural Sages - Chamber of Commerce Common Prosperity Fund
Since 2022, Shuanghuan
Driveline has made annual
donations of RMB600,000
each year to the Yuhuan
Charity Federation, Yucheng
Branch, earmarked specifically
to support rural revitalisation,
Photo of Donations for Public Welfare Projects in Shaya County, Xinjiang in 2025
village-enterprise pairing, and
social charitable public welfare
activities.
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Educational Revitalisation Intangible Cultural Heritage Protection
The Company has always focused on the development of local education, contributing to education As a locally rooted manufacturing
through multiple channels. For six consecutive years, we donated to the Bingang Education Fund, enterprise, Shuanghuan Driveline
putting this responsibility and commitment into practice. has continued to focus on the
inheritance of local culture and has
incorporated the intangible cultural
Case Shamen Town Education Fund heritage protection into our social
responsibility practices. Since
On the eve of Teachers’ Day in 2025, Shuanghuan Driveline donated RMB200,000 to the 2020, the Company has provided
Bingang Education Fund of Shamen Town, providing dedicated support for the development of long-term support for two major
local education. As a long-term supporting enterprise of the Bingang Education Fund, we had local intangible cultural heritage
participated in donations for six consecutive years, supporting the development of local education projects, dragon dance and Yue
through concrete actions and fulfilling corporate social responsibility. Opera, and has invited teams to
participate in the Shuanghuan New
Year’s Eve Gala performances.
Yue Opera
Donation Photo of the Shamen Town Education Fund in 2025 Dragon Dance
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Social Public Welfare
Public Service Support
Target Review
Shuanghuan Driveline regards education and public health as key priorities for its public welfare
support, continues to focus on the development of local basic education, and provides targeted
Metrics 2025 Target Completion Status Notes funding to frontline teachers and staff at local primary and secondary schools. Meanwhile, we work
with local labour unions and medical institutions to organise employees to participate in voluntary
Investment in social A 3% increase year- blood donation activities, continuously contributing to safeguarding the supply of blood for medical
public welfare on-year /
use in society.
Case Education Sponsorship
Through the establishment of dedicated funds, leveraging the labour union and Party organisations,
and working jointly with local institutions, the Company continues to advance public welfare
initiatives, driving the implementation of social responsibility practices from phased activities On Teachers’ Day on 10 September, management personnel of Jiangsu Shuanghuan visited the
towards a long-term, normalised mechanism. Development Zone Experimental Primary School and the East Campus of Hongjun Secondary
School to express their appreciation to frontline teaching and administrative staff, and provided
RMB60,000 in educational sponsorship.
Community Co-building
Relying on the labour unions at each site, the Company has long carried out public welfare
condolences and volunteer service activities for local communities.
Case Yuhuan City Enhui Nursing Home Visit and Condolence Activity
On the afternoon of 26 September,
the Labour Union Chairman and
Deputy Chairman, on behalf of
the Shuanghuan Labour Union,
visited Enhui Nursing Home in
Qianshantou, Yuhuan City, to bring
festive greetings and care to the
elderly living alone there.
Condolence Activities at Enhui Nursing Home Education Sponsorship Activities
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Case Voluntary Blood Donation
On 25 August, in order to promote the spirit of selfless
dedication and practise social responsibility, the Company
jointly organised a voluntary blood donation event
themed “Hot Blood, Delivering the Power of Life” with the
Development Zone Labour Union and Tongxiang No. 1
Hospital. More than 70 employees participated in the event,
supporting the assurance of clinical blood supply through
practical action.
Shuanghuan Voluntary Blood Donation
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Powered by
Infinite Innovation
R&D investment amounted to RMB 490.51 million, accounting The number of valid patents was475, all of which were applied to our
for 5.38% of revenue from our principal business. main business. In 2025, we newly filed 24 invention patents, and 12
patents were granted.
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Governance
Shuanghuan Driveline regards innovation-driven development as the core support for high-quality development. Focusing on product safety and
quality, digital transformation, and technological innovation, we have established an innovation governance mechanism led by the Shuanghuan
Sector goals
Research, promoted by the Process Development Centre, monitored by the Quality Management Centre, and collaboratively participated in by
production sites. The group takes the Shuanghuan Research as its technical hub to coordinate engineering and technology research, product
development, and specialist design in gear transmission and related fields, and works with the four major production sites to promote the
Build future factories to lead the industrialisation and implementation of technological achievements. The technical centre focuses on process innovation and engineer training,
industry towards safer and more promoting the continuous optimisation of manufacturing processes and the enhancement of professional capabilities; the Quality Management
efficient development. Centre is systematically responsible for product safety and quality management, covering key stages such as R&D and design, production and
manufacturing, supply chain management, inspection and testing, and after-sales service; the Lean Enterprise Management Department focuses
on the advancement of lean manufacturing and improvement initiatives, continuously enhancing production efficiency and operational quality.
In institutional development, the Company adhered to the principles of compliance, timeliness, and practicality, systematically updating policies
and procedures that no longer aligned with current management requirements, while streamlining and optimizing those that were redundant or
disconnected from actual operations. Upon completion of the phased revision tasks, the Group organized a professional internal audit team to
conduct full-coverage internal reviews of the revision results at each production base, focusing on the completeness, compliance, and practical
Material topics feasibility of the revised policies and procedures. By issuing dedicated internal audit reports and corrective action lists, the Company promoted
accountability and closed-loop rectification, continuously enhancing execution effectiveness and management efficiency.
Focusing on quality risk prevention and control, process control, accountability, and process standardization, the Company systematically
Product safety and quality, advanced institutional development, process optimization, and management system operation. During the Reporting Period, the Company
continued to implement 70 quality management policy documents, including those related to Advanced Product Quality Planning (APQP),
Technological innovation, and dynamically updated them in line with actual management needs. In 2025, Shuanghuan Headquarters completed the revision or
issuance of 8 quality management policy documents. At the same time, the Company continued to operate management systems such as
Digital transformation ISO 9001 and IATF 16949 and maintained the relevant certifications, thereby providing institutional support for stable product quality and
the standardized commercialization of innovation outcomes.
IATF 16949 Certificate ISO 9001 Certificate
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Focusing on “technological leadership and smart manufacturing-driven growth”, Shuanghuan Driveline
continues to advance the application of digitalisation and artificial intelligence across scenarios including
R&D, production, the supply chain, and after-sales services. The Company has established an artificial
intelligence computing centre and developed a “1+2+3+N” AI technology architecture, integrating AI into
product lifecycle management. During the design phase, we carry out simulation-based identification;
during the production phase, we implement quality monitoring; within the supply chain, we strengthen
quality early warning; and in after-sales, we promote continuous improvement, gradually forming a full-
chain assurance mechanism covering R&D, manufacturing, delivery, and services.
At the same time, we remain focused on key technology directions such as low noise, high efficiency,
and green development. We integrate technological innovation with the dual carbon goals and ESG
requirements. By increasing R&D investment, introducing high-end testing equipment, attracting technical
talent, and improving project management as well as innovation incentive mechanisms, we continue to
enhance our innovation capabilities. In 2025, Shuanghuan Research obtained the recognition as a high-
tech enterprise and CNAS laboratory accreditation, further consolidating the foundation for innovation
governance.
CNAS Laboratory Accreditation High-tech Enterprise Certificate
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Safety and Quality of Products and Services
Target Review
Metrics 2025 Target Completion Status Notes
Amount involved in major safety and
quality liability incidents related to products 0 /
and services during the reporting period
Strategy
Description of Potential
Type Business and Financial Impacts Time Dimension
Risks/Opportunities
Requirements for precision, noise levels, service
Customers’ requirements
life, and consistency for gears and transmission
for high reliability,
components for new energy vehicles continue to Medium term
low noise, and high Risk
increase. If product quality and performance are not (3-10 years)
consistency have
iterated in a timely manner, this may weaken market
increased
competitiveness.
Quality standards across As high-end gear products upgrade towards higher
the automotive and rotational speeds, lightweighting, and lower noise,
Medium term
high-end equipment Risk the difficulty of R&D, mass production, and process
(3-10 years)
industry chain continue to control increases, which may lead to increased R&D
become more stringent investment.
Through AI-based inspection in collaboration with
systems such as D-MOM/QMS/SRM, we can improve
Quality upgrade driven
defect identification efficiency, the speed of issue Medium term
by digitalisation and AI Opportunity
closed-loop resolution, and process stability, thereby (3-10 years)
quality inspection
reducing the defective rate, rework and repair, and
quality losses.
Developing low-noise, high-efficiency and
Low-carbon, high- lightweight gears and electric drive products
performance innovative help meet the needs of customers in new energy Medium term
Opportunity
products drive market vehicles, industrial robots and high-end equipment, (3-10 years)
growth enhance product value added and expand new
market opportunities
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Impact, Risk, and Opportunity Management
Customer satisfaction Quality-of-life principle
Shuanghuan Driveline regards customer satisfaction as an important metric for measuring the effectiveness of Shuanghuan Driveline takes “quality is the lifeline of an enterprise” as the core principle of product
product safety and quality management. Through a quality control mechanism covering the entire process of product safety and quality governance. Focusing on preventing major risks, controlling key issues, and
development, manufacturing, delivery, and after-sales service, we continuously enhance the customer experience. reducing quality losses, we have continued to consolidate the Shuanghuan quality brand.
Through a quality management organisation with clear division of responsibilities and coordinated operation, the
Company systematically incorporates customer feedback into the quality improvement mechanism. Optimisation of the measurement system and
upgrading of measurement equipment
Quality Assurance Office
During the Reporting Period, the Company continued to optimize its measurement
It is responsible for establishing and optimising the tracking mechanism for the customer complaint register,
system control procedures by introducing test methods and acceptance criteria for key
categorising complaint levels based on the severity of issues, implementing register-based management
capabilities such as resolution, CG/CGK (measurement system capability indices), linearity,
and closed-loop tracking for customer feedback, clarifying the responsible departments and rectification
and stability. It also further refined and disaggregated GRR analysis (Gauge Repeatability
deadlines, and ensuring that issues are addressed promptly and effectively.
and Reproducibility) to accommodate different application scenarios, including manual
gauges and automated inspection equipment.
The Company upgraded relevant inspection software by adding an automatic abnormal
Major Project Quality Management Office Supplier Quality Management Office
curve recognition function to improve anomaly detection efficiency. At the same time, it
advanced the in-house modification of single-flank testing equipment by adding a cooling
It is responsible for promoting quality It is responsible for design quality management device for noise sensors and an automatic rail lubrication system to enhance operational
management and customer feedback for of suppliers prior to mass production. stability. In addition, the Company carried out integrated software and hardware upgrades
key projects. In 2025, there were 0 S/A-level for another type of single-flank testing equipment, optimizing measurement software
customer complaints for key projects. functions and upgrading operations from manual processing to automated online
connectivity, thereby further improving inspection efficiency and data reliability.
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Reduced quality loss
Focusing on the objectives of “reducing losses, improving efficiency, and preventing risks”,
the Company systematically strengthens the mechanisms for the statistical tracking, analysis,
and control of quality costs, and promotes the conversion of quality improvement outcomes
into operational benefits.
At the data governance level, the Company standardises and optimises the statistical
templates for quality cost data across all sites, standardises the definitions and
classification criteria, strengthens the linkage between quality reports and the BI system,
and improves the timeliness and comparability of quality cost data. Meanwhile, the
Company has revised and released the Management Measures of Shuanghuan Driveline
for the Statistics of Key Quality Metrics, further detailing the statistical requirements and
management responsibilities for quality cost-related indicators.
At the execution and analysis level, the Company carries out a systematic review of
quality cost data for sites such as Jiangsu Shuanghuan and Jiaxing Shuanghuan, with a
focus on identifying anomalies and structural issues in the collection of quality cost data,
driving closed-loop resolution of the relevant issues, and enhancing the authenticity and
management value of quality cost data.
In addition, the Company standardises the quality claims management process and has
issued the Notice on the Standardised Process for Handling Quality Claims between Each
Base/Branch and the Jiangsu Precision Forming Centre, to implement unified management
and oversight of quality claim activities, rectify non-compliant claim cases, ensure fairness
among internal units, and effectively safeguard the Company’s overall interests.
Metrics and Targets
Metrics Unit Data of 2025 2026 Target
Amount involved in major safety and
quality liability incidents related to
RMB10,000 0 0
products and services during the
reporting period
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Digital Transformation
Strategy
Description of Potential
Type Business and Financial Impacts Time Dimension
Risks/Opportunities
Imbalanced Differences in the level of digitalisation
digitalisation levels across steel materials, outsourced
across upstream processing, logistics, and customer
Short term
and downstream Risk interfaces may result in delays in
(1-3 years)
operations affect information transmission, poor planning
collaboration coordination, and reduced supply chain
efficiency responsiveness.
With the deep integration of systems
such as ERP, MES, D-MOM and QMS,
Rising requirements risks including data leakage, system
Medium term
for data security and Risk outages and loss of access control have
(3-10 years)
system compliance increased, which may affect production
continuity, customer trust and compliance
performance.
Digital workshops, flexible production, and
Intelligent data analytics capabilities help enhance
manufacturing helps the stability, consistency, and delivery
Medium term
support the upgrading Opportunity capability of high-precision machining,
(3-10 years)
of high-precision gear supporting the development of our new
manufacturing energy vehicle and high-end equipment
business.
AI empowers R&D and design, supply
AI and data chain analysis, production operations, and
applications expand sales management, helping to improve Medium term
Opportunity
new competitive decision-making efficiency, shorten (3-10 years)
advantages response cycles, and create differentiated
competitive advantages.
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Impact, Risk, and Opportunity Management
Shuanghuan Driveline focuses on unlocking data value and upgrading intelligent manufacturing, and has established a phased, governable digital transformation pathway. This is advanced step by step in accordance with
the three stages of informationisation–digitalisation–intelligentisation, ensuring that the development of digital capabilities is aligned with the Company’s corporate governance, business maturity, and risk management and
control standards.
Intelligent manufacturing system architecture
Shuanghuan Driveline uses the “1+4+1” new intelligent manufacturing model The completion of an advanced intelligent factory has effectively addressed
as the overall framework, namely building an enterprise intelligent brain, common challenges faced by discrete manufacturing industries such as automotive
systematically developing four core capabilities of digital design, intelligent components in areas including high-precision manufacturing, flexible production,
production, green manufacturing, and lean management, and promoting improved efficiency in energy and resource utilisation, and full life-cycle management
the continuous evolution of intelligent manufacturing capabilities in a model- of product quality. It has promoted enterprises’ transformation and upgrading
based and system-based manner. towards a green, safe, and sustainable model of high-quality development, and has
also driven upstream and downstream enterprises in the industrial chain to achieve
Centred on the overarching approach of “lean-driven development and collaborative optimisation and joint development.
digital empowerment”, the Company leverages new-generation information
technologies such as 5G, edge computing, the industrial internet, big data,
and artificial intelligence to promote the deep integration of IT, OT, and
ET. Through collaboration both within and beyond the industrial chain, we
have built an intelligent factory ecosystem integrating R&D, manufacturing,
quality, sales, logistics, and customer services, significantly enhancing market
responsiveness and competitiveness in product quality, shortening product
delivery cycles, and reducing overall operating costs.
Robot Modelling
AGV
Fully Automated Gear
Machining Production Line
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Business system integration architecture
Vertical integration system
The Company has established a six?layer vertically integrated architecture from the
Deep integration of core systems
equipment level to the decision?making level: the foundational layer provides support
for data centres, network interconnection and security protection; the equipment layer
covers production equipment, inspection equipment, logistics equipment, and intelligent With ERP as the core hub, Shuanghuan Driveline achieves
terminals such as sensors and RFID; the control layer deploys the SCADA system and seamless integration with management systems including
the PLC control network; the execution layer integrates manufacturing execution systems OA, HR, PLM, CAPP, CRM, and SRM. Through a unified
such as APS, MES, QMS/LMS and WMS; the planning layer coordinates enterprise interface platform, we ensure the real-time synchronisation
resource management systems such as ERP, CRM, SCM and PLM; the decision?making of key data, including orders, plans, materials, and quality
layer establishes an intelligent decision?making system covering customer management, standards, across all systems, gradually establishing a
order management, production planning, procurement planning and delivery planning, collaborative operating model of “one order, full-process
thereby achieving data-driven refined management. visibility”.
Horizontal integration system Collaboration of manufacturing
execution systems
By integrating horizontally across business
areas including R&D and design, production
The Company has built a production process
and manufacturing, logistics and warehousing,
management system centred on MOM
quality control, equipment maintenance, and
(Manufacturing Operations Management), integrating
energy management, we achieve the collaborative
functional modules including order execution, quality
operation of multiple business modules. Relying
management, warehouse management, tooling
on the digital workshop model and the integration
and fixture management, personnel performance
of intelligent production lines, we connect the data
management, and equipment management, and
flow across the entire product life cycle, forming a
achieved real-time monitoring and automatic control
continuously optimised business closed loop.
of the production site through the SCADA/PLC
system to ensure that decisions at the planning level
are accurately communicated to the execution level.
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Data connectivity mechanism
Shuanghuan Driveline has established a comprehensive data acquisition network covering
multiple categories of equipment, including sensors, marking equipment, industrial
gateways, inspection equipment, and AGVs. Through a combination of offline and real-time
Data acquisition, we achieve comprehensive perception, monitoring, and processing of data
collection from the production site.
and
processing
The Company has established a unified data governance platform,
covering functionalities such as metadata management, master
Data data management, data standards, data quality, data security, and
Governance
Platform data lifecycle management. This ensures consistent data definitions,
reliable quality, and traceable sources, providing a solid foundation
for digital applications.
Intelligent
models and Leveraging big data and artificial intelligence technologies, Shuanghuan Driveline has
data continued to develop intelligent models for market trend forecasting, cost forecasting,
applications
quality risk early warning, energy consumption management, and quality traceability,
supporting key business scenarios such as market analysis, procurement control,
production scheduling, online quality early warning, and cost optimisation.
Technical support system
Leveraging new-generation information technologies such as cloud computing, digital twins, big data, and artificial intelligence, we have
built a resilient and scalable technology foundation. Through an industrial internet platform and a 5G+OT network, we have achieved
equipment interconnection, data connectivity, and application interoperability, providing stable, secure, and efficient technical support for
business system integration and end-to-end data connectivity.
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AI-enabled Quality Empowerment
Shuanghuan Driveline, with artificial intelligence and digital technologies as the core drivers, has established a progressive path for upgrading quality governance, promoting the evolution of quality
management from tool-enabled empowerment towards cultural and industry leadership.
Digital and intelligent Collaborative Innovation Cultural Benchmark
empowerment empowerment empowerment empowerment empowerment
Leveraging AI, D-MOM, and We strengthen the We refine the continuous We strengthen quality Building on system maturity
a range of digital tools, we communication and improvement mechanism, awareness among all and capability spillover, we
strengthen the fundamental implementation of the quality promote deep integration of employees, internalise participate in and take a
management mechanism management philosophy, data-driven approaches and the quality philosophy leading role in developing
for the cycle, standardise promote collaboration across technological innovation, into employees’ shared industry quality standards,
quality behaviours and departments, production lines, and progressively cultivate understanding and voluntary share replicable quality and
operational practices, and and the full project lifecycle, a future-oriented quality actions, and build a distinctive digitalisation experience,
promote the transformation establish an “end-to-end” innovation ecosystem. corporate quality culture and and build a benchmark
of quality management quality management chain, brand image. empowerment ecosystem.
towards digitalisation and and improve the efficiency of
standardisation. quality collaboration across
the entire value chain.
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AI Intelligent Assistant
Shuanghuan Driveline leverages 25,000 internally accumulated industry problem-solving experiences and classic quality management theories to develop a Quality AI Assistant agent. Through large language
models and knowledge graph technologies, it provides intelligent support across the full process of quality problem-solving, establishing a new quality management and control paradigm of pre-event
prevention, in-event control, and post-event closure. Quality problem-solving efficiency increased by 30%, reducing quality engineers’ repetitive work in basic analysis and report writing, and enabling them to
focus their efforts on core technical breakthroughs and quality improvement.
Pre-event prevention: In-event control: Post-event closure:
Intelligent analysis of potential failure Intelligent generation of in-depth Intelligent generation of 8D reports
modes in FMEA quality analysis reports dedicated to the gear industry
Based on gear design parameters, process route By inputting the phenomena of quality issues and Built-in gear industry 8D report standard template, with
and historical failure data, AI automatically identifies preliminary inspection data, the AI associates similar AI automatically integrating information such as problem
potential failure modes and risk points. AI generates historical cases via knowledge graphs. The report descriptions, root cause analysis, and corrective and
FMEA analysis reports intelligently, recommending includes an in-depth analysis of the root causes of the preventive measures. A professional-grade 8D report
targeted preventive measures and control plans to issue, a multidimensional impact assessment, targeted that meets the requirements of the IATF 16949 Quality
eliminate quality risks at the earliest stage. improvement measures, and recommendations on Management System is generated, which supports one-
key control points, providing comprehensive decision- click export for sharing with customers and ensures
making support for quality engineers. closed-loop management of quality issues.
Drill Bit Fracture
Equipment Factors Process / Inspection /
Operational Factors Management Factors
Failure to
Hydraulic System Loose Tooling Incorrect Drill Bit Improper Cutting No Quantified Tool Lack of Broken
Implement Tool Life
Contamination Fixture Selection Parameters Change Schedule Tool Detection
Management
Generation of a Root Cause Analysis Thinking Tree
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Quality Report AI Closed-loop Judgement System
Dual engine of “Automated Extraction + AI Judgement”
As a core module of Shuanghuan Driveline’s AI quality control system, the Quality Report AI Visual
Judgement System leverages deep learning and computer vision technologies to achieve an Based on OCR and computer vision technologies, it accurately identifies and recognises
intelligent upgrade across the entire quality inspection process, thereby establishing a robust quality key indicators in inspection reports, such as dimensional accuracy, surface defects,
safeguard for precision gear manufacturing. The Quality Report AI Closed-loop Judgement System and hardness parameters. A feature database of gear quality defects has been built,
replaces the traditional manual review model, automatically completing data extraction, feature achieving a judgement accuracy rate of over 99.5% through deep learning models.
recognition, and result judgement for gear inspection reports.
AI Measurement System for Weld Seam Defects
Shuanghuan Driveline has developed an AI measurement system for weld seam defects in
response to issues such as the long time required for traditional weld inspection, accuracy being
significantly affected by manual work, and difficulties in data traceability. Through AI measurement
plus manual review, we improve the efficiency and stability of quality inspection. The system, based
on computer vision and optimised YOLO algorithms, can automatically identify weld seam contours
Real-time and closed-loop Quality report trend analysis
and measure key parameters such as length, width, reinforcement height, and undercut depth,
early warning on WeCom dashboard
achieving a detection accuracy of 99%.
The system supports customised weld inspection templates and parameter settings for multiple The system automatically identifies out- It integrates historical inspection
products, can automatically generate standardised inspection reports, and synchronise them to the of-tolerance items and quality risk points, data, uses AI algorithms to identify
enterprise quality database to achieve data traceability. At the same time, the system integrates and pushes real-time early warning patterns in quality fluctuations,
historical inspection data to create multidimensional analysis dashboards, monitoring fluctuations messages to quality engineers and and generate multidimensional
in weld quality in real time and providing support for process optimisation and equipment production shift leaders via WeCom. An trend analysis reports. Moreover,
maintenance. embedded exception handling workflow it supports quality traceability by
engine supports one-click initiation of dimensions such as product line,
quality traceability and rectification work production batch, and equipment
orders, enabling end-to-end control of the model, providing data support for
entire process of problem identification, process optimisation and quality
response, and closed-loop management. improvement.
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Technological Innovation
Strategy
Impact, Risk, and Opportunity Management
Description of Potential
Type Business and Financial Impacts Time Dimension
Risks/Opportunities Innovation team
Gear manufacturing and new energy vehicle
transmission systems are facing increasingly Shuanghuan Driveline regards a well-balanced age structure as an important foundation
Accelerating industry stringent technical requirements for low noise, for innovative teamwork and sustainable development, and is committed to building
Short term
technological Risk high efficiency, lightweight design, and high a talent team with a balanced echelon, combining both dynamism and experience.
(1-3 years)
iteration continues reliability. If breakthroughs in core technologies lag Our current innovation team covers all age groups, forming a talent pipeline with an
behind, this may affect customer orders, product organic connection between older, middle-aged, and younger staff. Among them, staff
competitiveness, and market share. aged under 30 account for 46.4%, those aged 31-40 account for 31.9%, those aged
Increasing difficulty in recruiting PhD holders, above account for 0.2%. A diverse age structure not only brings the innovative vitality
process experts, and interdisciplinary talent of young talent to the team, but also retains the accumulated experience and technical
Intensified
in intelligent manufacturing and AI may drive Medium term inheritance of mature talent, providing strong support for the sustained advancement of
competition for high- Risk
up remuneration and talent acquisition costs, (3-10 years) scientific and technological innovation work.
end R&D talent
and affect the progress of critical technology
breakthroughs.
Integrating artificial intelligence, digital simulation,
Intelligent 2025
and smart factory capabilities into R&D and
manufacturing and
manufacturing will help enhance development Medium term
AI applications Opportunity
efficiency, testing and verification capabilities, and (3-10 years)
expand innovation
the speed of results translation, thereby creating In 2025, the number of R&D personnel reached 1,282, accounting for
boundaries
differentiated competitive advantages. over
Through the institute platform, university- The number of valid patents was 475, all of which were applied to
Open innovation enterprise cooperation, and the introduction of
our main business. In 2025, we newly filed 24 invention patents, and
strengthens expert resources, we can enhance capabilities in Medium term
Opportunity
technological basic research, engineering commercialisation, (3-10 years)
synergy capabilities and reserves of cutting-edge technologies,
strengthening long-term innovation resilience.
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R&D equipment Innovative product development
As of 31 December 2025, the test and validation centre of the Shuanghuan Research had a new
High-Speed Low-Noise Electric Drive Technology
energy high-speed NVH test bench, a new energy high-speed three-motor test bench, and a
precision reducer comprehensive test bench. The relevant equipment can support performance
and fatigue tests for electric drive assemblies and their subsystems, performance tests for precision
reducers, etc., providing important support for our product research and development, testing and To address the prominent industry pain point of noise, vibration and harshness (NVH) in
validation, and technological innovation. the “high-speed and lightweight” development of electric drive systems, the group’s R&D
team has built a multi-physics coupled NVH control system with “accurate prediction +
targeted optimisation” at its core. By integrating theoretical modelling, simulation analysis,
and experimental validation, we clarify the excitation sources and transmission paths
of high-speed gears, and have established a coupling mechanism between structural
dynamic response and acoustic radiation. Ultimately, this has achieved reductions in
electric drive system noise and in peak vibration acceleration, reduced noise pollution
across the product’s full lifecycle at source, while also helping to improve the energy
efficiency of the electric drive system, aligning with the industrial orientation of green
manufacturing and high-quality development.
High-Speed NVH Test Bench High-Speed Three-Motor Test Bench
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Strength assessment and tooth profile optimisation Advanced metal additive manufacturing
of lightweight high-strength plastic gears
In response to industry pain points in the traditional processing of metal components
In response to industry pain points in the application of plastic gears in areas such for transmission systems, such as complex processing procedures, long manufacturing
as e-bikes, and smart home devices, including non-unified design standards and an cycles, high costs for small-batch processing, and constraints on the processing of
incomplete materials database, Shuanghuan Driveline has developed a plastic gear complex structures, Shuanghuan Driveline has established an advanced metal additive
design and analysis methodology. This methodology is used to analyse tooth flank and manufacturing laboratory, developed capabilities in additive manufacturing and
tooth root stress and load distribution, thereby enhancing the load-bearing capacity performance assessment of metal components, and progressively improved the product
of plastic gears. Meanwhile, through standardised tests, we assess the fatigue life and database. This technology has been applied to the manufacturing of components such
failure characteristics of different plastic materials and have gradually established a as gears, gear shafts, engine ring gears, planetary carriers, and gearbox housings. It also
materials database. The relevant technologies for the strength assessment and tooth supports the efficient manufacturing of complex systems and core components, including
profile optimisation of lightweight high-strength plastic gears have been applied to E-bike machine tool equipment, hybrid power systems, small sub-assemblies, engines, and
drives, effectively enhancing the load-bearing capacity and endurance performance of transfer cases, effectively reducing production steps, overcoming limitations associated
the transmission system, thereby supporting safe, low-carbon, and efficient travel. with complex structures, and helping to reduce product weight and enhance cost
reduction and efficiency improvement.
Metal Additive Manufacturing Products
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Metrics and Targets
Differential welding technology
Metrics Unit Data of 2024 Data of 2025
Shuanghuan Driveline replaces traditional R&D investment amount RMB10,000 45,604.29 49,051.16
bolted connections with welding
R&D investment as a percentage
processes, optimises the casting process % 5.19 5.38
of main revenue
of differential housing materials and the
welding structural design, and enhances Number of R&D personnel persons 1,262 1,282
the strength of the housing material
and weld strength, thereby achieving
Percentage of R&D personnel % 15.14 14.27
differential lightweighting, improved NVH Number of invention patents items 104 116
performance, and increased production applied in core business
efficiency. Meanwhile, the Company
Number of invention patent
has gradually established a database of applications during the reporting items 29 24
differential housing materials and welding period
processes to better meet the product Number of invention patents
Welded Differential
requirements of different customers. granted during the reporting items 31 12
period
Total number of valid patents items 428 475
during the reporting period
Full life cycle design 01 02 03
At the raw material stage During the design and At the end-of-life and
To improve the environmental manufacturing stage recycling stage
performance of our products,
Shuanghuan Driveline introduced The R&D team prioritises materials with a We achieve gear lightweighting through topology Product design fully considers
the full life cycle concept at the gear lower carbon footprint and environmental optimisation, reducing material use and manufacturing disassemblability and recyclability,
friendliness, gradually introducing energy consumption, while also improving meshing facilitating the sorted recycling of
product R&D stage, systematically
material plans that combine performance performance, reducing noise, and extending service components made from different materials.
considering the environmental impacts advantages with eco-friendly properties, life. During the manufacturing process, we integrate The Company is also exploring a raw
across stages including raw material reducing carbon emissions and resource intelligent manufacturing technologies to improve material recycling model in collaboration
sourcing, design and manufacture, consumption from the source. machining precision and material utilisation, and carry with steel mills, promoting the return of
and end-of-life recycling. out dynamic monitoring and optimisation of energy recycled materials to production on the
consumption, cutting fluid use, and waste generation, premise of meeting quality requirements,
thereby promoting green and efficient operation of and gradually establishing a closed-loop
the production process. system for circular resource utilisation.
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Connected in
Symbiotic Synergy
The signing rate of the Supplier Integrity
Commitment reached
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Governance
Shuanghuan Driveline continues to improve governance mechanisms relating to suppliers, customers, and partners. Focusing on topics such
Sector goals as supply chain security and sustainability, equal cooperation, data and information security, and customer privacy protection, we continue to
enhance the security, transparency, and sustainability of the collaborative ecosystem. The Company continuously extends its responsibility
management requirements from within the enterprise to the entire supply chain. By revising the Production Material Supplier Management
Jointly build a safe and trustworthy Procedures, optimising labour rights-related procedures, and incorporating social responsibility requirements into the supplier management
industry ecosystem. system, it specifies prohibitions against child labour and forced labour, establishes a combined system of “regular audits and random checks”
for graded supervision and disposal mechanisms, and promotes the upgrade of supply chain governance from single-point compliance to
collaborative co-construction. We have established a dedicated supply chain management department responsible for supplier onboarding,
review, and phase-out management, incorporating compliance performance, contract fulfilment capabilities, and sustainable development
requirements into a unified process, and promoting suppliers’ continuous improvement in environmental, social, and governance aspects through
training, communication, and collaborative improvement initiatives. Steel suppliers, as key suppliers, are included within the scope of more
stringent onboarding assessments and ongoing monitoring to safeguard the stability and sustainability of the supply chain.
Material topics Meanwhile, Shuanghuan Driveline always adheres to the cooperation principles of fairness and impartiality, treats all categories of SME
partners equally, and continued to foster a transparent and trustworthy business co-operation environment, effectively safeguarding
the legitimate rights and interests of SMEs through institutional constraints and process optimisation. The Company also attaches great
Supply chain security and importance to data and information security, incorporating data security and business continuity assurance into key elements of digital
sustainability governance, and continuously enhancing information system security, data integrity, and the compliance level of privacy protection through
a combination of technical safeguards, institutional development, system optimisation, and emergency management.
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Supply Chain Security and Sustainability
Strategy Impact, Risk, and Opportunity
Management
Description of Potential In sustainable supply chain management, Shuanghuan Driveline regards compliance
Type Business and Financial Impacts Time Dimension
Risks/Opportunities
and integrity as the prerequisite and baseline requirements for supplier cooperation.
As steel is an important procurement category The Company systematically incorporates business ethics and compliance
Stricter green for the Company, its carbon footprint, energy clauses into commercial contracts, clearly requiring all suppliers to sign “integrity
and compliance mix, and environmental compliance performance agreements” such as the Supplier Integrity Commitment and the Supplier Code of
Short term
requirements for key Risk will affect supply chain stability and export Conduct, to prevent improper transactions and the transfer of interests. During the
(1-3 years)
raw materials such as competitiveness. If upstream transformation is reporting period, the signing rate of “integrity agreements” with suppliers reached
steel insufficient, this may increase procurement risks
and compliance costs.
In the steel procurement process, Shuanghuan Driveline implements stringent
If suppliers are involved in labour violations, management measures to ensure the compliance, transparency, and integrity of the
Upstream safety incidents, illegal pollutant discharges,
procurement process. Simultaneously, the Legal Affairs Department led the update
transmission of supply or dishonest practices, this may cause
Medium term of the Procurement Price Confidentiality Agreement for 2025. Procurement personnel
chain environmental Risk delivery disruptions, reputational damage, and
(3-10 years) are required to sign the Employee Code of Conduct, committing to adhere to
and social customer audit risks for the Company. During
professional ethics and safeguard the Company’s interests during procurement
responsibility risks the reporting period, the signing rate of the
processes.
Supplier Sunshine Agreement was 100%.
Through supplier onboarding, performance
Responsible
evaluation, tiered management, and social
procurement
responsibility audits, we can help enhance the Medium term
enhances supply Opportunity
overall standardisation of the supply chain, (3-10 years) During the reporting period
chain stability and
reduce disruption risks, and strengthen quality
transparency
and delivery stability.
The signing rate of “integrity agreements” with suppliers reached
Through responsible management, green
Supplier
requirements, and capability improvement
empowerment
programmes, we drive suppliers to make
promotes Medium term
Opportunity continuous improvements across environmental,
collaborative (3-10 years)
social, and governance aspects, helping to
upgrading of the
build a safer, more transparent, and sustainable
industrial chain
industrial ecosystem.
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Supplier lifecycle management
Shuanghuan Driveline, guided by the full life-cycle management
logic of access, assessment, improvement, and elimination, has
established a systematic and sustainable supplier responsibility
management mechanism. During the access stage, we carry out
Prohibit the use of child labour in any form. Prohibit the illegal discharge of toxic and
a comprehensive assessment of potential suppliers, focusing on
hazardous pollutants, including wastewater,
their capabilities, financial position, quality systems, management
waste gas, and solid waste.
standards, and cooperation stability. We also incorporate requirements Prohibit the use of prison labour and any form
on social responsibility, environmental management, and business of forced labour, and do not restrict personal
ethics into the access criteria, so as to ensure the compliance and freedom or detain identity documents. Prevent major media crises and mass negative
reliability of the supply chain at source. The Company implements incidents, including abnormal deaths, mass
dynamic management and annual performance evaluations for labour disputes, collective poisoning, and similar
Prohibit violence, verbal abuse, corporal
qualified suppliers. The evaluation dimensions cover product quality, situations.
punishment, sexual harassment, and any form of
on-time delivery, service responsiveness, and social responsibility illegal body search.
performance. Based on the evaluation results, suppliers are classified Provide a safe and healthy working environment,
into four grades, from A to D. The evaluation results are directly and take effective measures to prevent
Prohibit paying employees remuneration below
linked to our procurement strategy and the depth of cooperation. occupational injuries and collective infection
the local minimum wage standard.
Suppliers with identified risks are required to develop and implement incidents arising from infectious diseases.
improvement plans, driving their continuous enhancement of
management standards. The Company has established a clear phase- Prevent serious safety accidents such as major
Strictly prohibit corruption and dishonest
out mechanism. For suppliers whose performance continues to fall below fires and explosions.
conduct, and implement the “Six No’s and One
standards or whose risks are uncontrollable, we will gradually reduce the Commitment” integrity requirements of “no
procurement share until cooperation is terminated, thereby ensuring the bribery, no gift-giving, no improper affiliations, no
Eliminate working conditions that seriously
overall stability, safety, and sustainability of the supply chain. endanger life safety or health, and prohibit the falsification, no cutting corners, no commercial
occurrence of fatal accidents. fraud, and honour commitment”.
Co-building a supplier social responsibility
ecosystem
During the reporting period, Shuanghuan strengthened the
foundations for internal compliance and rights protection by revising
the Production Material Supplier Management Procedures and improving
procedures related to labour rights and occupational health and safety.
On this basis, Shuanghuan Driveline set the following “ten bottom-line
requirements” for social responsibility for suppliers:
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Green Transition of Suppliers
In 2025, Shuanghuan Driveline integrated its carbon neutrality targets into its supplier empowerment
system, clearly setting out requirements for green energy use and carbon footprint management, and
encouraging suppliers to shift from passive compliance to proactive carbon reduction. The Company
encouraged suppliers to give priority to purchasing renewable electricity and, where conditions
permitted, to develop distributed photovoltaic projects, so as to reduce the overall carbon emission
intensity of the supply chain. During the reporting period, some core suppliers carried out relevant
practices. For example, one supplier completed the purchase of green certificates corresponding to
At the same time, the Company incorporates product carbon footprint management into supplier
cooperation requirements, encouraging suppliers to provide product carbon footprint reports in
accordance with relevant standards. We have progressively established a full lifecycle carbon emission
data traceability system covering raw material sourcing, production and manufacturing, and delivery
stages, continuously enhancing the transparency of carbon information and carbon management
capability within the supply chain.
Green Power Procurement Status and
Carbon Footprint Report of a Supplier
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Data and Information Security
Target Review To ensure data consistency and high quality, Shuanghuan Driveline
continues to advance information system integration and business
Metrics 2025 Target Completion Status Notes Information collaboration, supporting operational and management needs
system across multiple scenarios, including production, quality, technology,
Specific amount integration and marketing. The Company progressively interconnects systems
involved in customer
privacy breach
incidents synergy of information flows, enhancing collaboration efficiency among people,
materials, and data, and reducing management risks arising from data
silos and duplicate data entry.
Shuanghuan Driveline attaches great importance to data and information security, incorporating data
security and business continuity assurance into key elements of the Company’s digital governance, and
continuously enhancing information system security, data integrity, and the compliance level of privacy
protection through a combination of technical safeguards, institutional development, system optimisation, The Company continues to improve information infrastructure
and emergency management. development and has established a local area network with optical
fibre as the backbone. In 2019, the Company built a T2-standard data
Network and
centre in Hangzhou and established a remote backup computer room
infrastructure in Yuhuan for disaster recovery and business continuity assurance.
security Meanwhile, the Company deployed the Citrix SD-WAN system in
development Hangzhou, Chongqing, and Huai’an, significantly improving the
efficiency and stability of offsite network transmission and providing
support for cross-regional collaborative operations.
During the reporting period, Shuanghuan Driveline further
Network strengthened network perimeter security and external access controls.
boundary and Through measures such as OneDNS, zero-trust VPN, reinforced data
access control backup, and database operation and maintenance security barriers,
protection we established a more robust data and information security protection
system.
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OneDNS Security Protection Project Data backup hardening and protection project
OneDNS is an internet security access service provided by The Company adopts a more secure data backup storage
ThreatBook, featuring easy deployment, high precision, high stability, system, and, through mandatory security policies, prohibits
and full-scenario coverage. Through DNS recursive resolution unlawful or malicious activities from having an irreversible
technology, it effectively blocks threats such as malware, ransomware, impact on data backups. Data backups are enabled to play
and phishing attacks, and also supports ad blocking and bandwidth a critical role when required. We also regularly conduct data
management. Cloud-based threat intelligence is synchronised in real recovery drills to ensure the effectiveness of data backups.
time, with Trojans, ransomware, APT attacks and phishing links blocked
automatically, achieving a detection rate of up to 99.99%.
Database operation and maintenance security
Zero-trust VPN unified integration with WeCom project
application access Databases are also important objects of protection for data
To reduce external security threats, minimise the external attack security. As the number of operations and maintenance
personnel, development personnel, and external operations
surface, and standardise access interfaces, we deploy a zero-
and maintenance personnel has gradually increased,
trust VPN, further enhancing our information security assurance
databases face security risks such as leakage and sabotage.
capabilities. By means of a zero-trust VPN, we have established a
To avoid malicious or unintentional data security risks, we
trusted connection between the WeCom application and intranet
strengthen database asset management, establish a unified
applications, synchronising WeCom user information. When WeCom
database operations and maintenance platform, strengthen
users access applications, the zero-trust VPN automatically performs
identity authentication, refine and manage permissions by
identity authentication and uses an encrypted connection, enhancing database access personnel, set data security policies, and
the security of external access to intranet applications. prevent high-risk operations. For high-risk operations that
are genuinely necessary for business purposes, the approval
process must be followed.
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Information security emergency plan and response Customer Privacy Protection
The Company has established a relatively comprehensive information security emergency response
plan control procedure, classifying information security emergencies into three major categories:
Target Review
attack-related, fault-related, and disaster-related. These correspond to different scenarios such as virus
infection, unauthorised intrusion, software and hardware failures, operational errors, fire, typhoons,
and lightning strikes. For various types of incidents, the Company has formulated tiered response and Metrics 2025 Target Completion Status Notes
handling measures to ensure a rapid response and timely recovery after security incidents occur, and to
minimise, to the greatest extent possible, the impact on production and operations and data assets. Amount involved in
customer privacy 0 /
leakage incidents
Continuous optimisation and certification
by third parties Shuanghuan Driveline attaches great importance to the protection of customer information and
commercial secrets, incorporates customer privacy protection into the key aspects of data and
information security management, and continuously enhances information protection through a
Shuanghuan Driveline continuously identifies and remedies information security vulnerabilities through
combination of institutional controls, technical safeguards, and routine management and control. In 2025,
regular red-blue exercises and penetration testing, and continuously optimises security strategies the Legal Affairs Department took the lead in revising and improving the Procurement-Related Employee
and system stability. Meanwhile, the Company has obtained DCMM (Data Management Capability Confidentiality Agreement and the Integrity Commitment. Through employee confidentiality agreements and
Maturity Assessment Model) Level 3 (Robust Level) certification, marking that we have a relatively external confidentiality agreements, the Company clarifies the confidentiality obligations of employees
mature management foundation in data management, data governance, and data application, and also and partners regarding pricing information, business transaction information, customer information, and
providing support for further enhancing our data and information security governance capabilities. other non-public information. It also standardises requirements for the acquisition, use, transmission,
and retention of information, and mitigates the risk of information leakage arising from management
oversights or improper use.
Data and Information Security Metrics and Targets In terms of internal management, the Company clearly requires employees not to install or use pirated
software, reducing the risks of malicious programmes, data leakage, and system attacks arising from
illegal software, and safeguarding the security of information systems and customer data. During the
reporting period, we continue to strengthen day-to-day email security protection through anti-fraud email
Metrics Unit Data of 2025 2026 Target and security managed services and, in conjunction with third-party attack-and-defence drills, continue
to identify and remedy system vulnerabilities, enhancing our ability to identify and respond to phishing
emails, malicious links, and external attacks. Through multidimensional collaboration across systems,
Specific amount people, and technology, Shuanghuan Driveline continues to consolidate the foundations of customer
involved in customer RMB10,000 0 0 privacy protection, safeguarding the security of customer information and a trusted environment for
privacy breach incidents business cooperation.
Customer Privacy Protection Metrics and Targets
Metrics Unit Data of 2025 2026 Target
Amount of losses
caused by customer
privacy leakage
RMB10,000 0 0
incidents
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Rooted in Steady
Governance
Coverage rate of anti-corruption and anti-com- Directors received anti-corruption
mercial bribery training for employees reached and anti-commercial bribery
training once.
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Due Diligence and Risk
Management
Shuanghuan Driveline continues to improve its enterprise risk management system, embedding risk management into business decision-
Sector goals
making and daily operations. It has established internal system documents such as the Risk and Opportunity Response Measures Management
Procedures, the Economic Responsibility Audit Measures, the Audit Clue Collection Guidelines, and the Internal Audit Policy, providing an institutional
Establish a scientific and basis for the identification, assessment, supervision, and handling of compliance risk, business risk, and ESG-related risks. In 2025, the
reasonable governance structure Company further strengthened the forward-looking and systematic risk management by incorporating ESG-related risks into the overall risk
and risk prevention system. management framework, achieving synergistic management of business risks, compliance risks, and sustainability risks.
Risk Monitoring and Audit Supervision
The Company has established the Internal Audit Policy. Focusing on the annual work plan and operating objectives, we carry
Material topics out independent evaluation and supervision over the effectiveness of internal control and risk management, the authenticity and
integrity of financial information, and the legality, compliance, efficiency and effectiveness of business activities, so as to prevent
and control risks and effectively safeguard the Company’s operations.
Anti-corruption and anti-
The Audit Committee regularly reviews the work plans and reports submitted by the Audit Department and reports to the Board,
bribery
including but not limited to the progress and quality of internal audit work and major issues identified. Meanwhile, in accordance
with customer requirements and business needs, the Company also carries out third-party audits. The audit scope covered
labour, occupational health and safety, environmental protection, business ethics (including conflict minerals), and management
systems, among others.
Risk Management Culture
Shuanghuan Driveline focuses on fostering risk management awareness among all employees, integrating the risk management
concept into corporate culture building. The Company enhances employees’ risk identification, prevention, and control
capabilities through mechanisms such as communicating and implementing policies, dedicated training, and internal exchanges,
and promotes the gradual transformation of risk management from a system requirement into employees’ conscious actions.
By continuously strengthening our risk management culture, we have continued to enhance the organisation’s ability to respond
to a complex operating environment, thereby providing assurance for the enterprise’s long-term stable development.
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Risk Management Structure
Compliance Management
The Company has established a multi-tier risk management structure. The Board of Shuanghuan Driveline has always regarded compliance management as a fundamental requirement for
Directors is responsible for overall oversight, while the Audit Committee and the internal the Company’s sound operations and sustainability. The Company issued Code of Business Conduct
audit department are responsible for the organisation, supervision, and promotion of the to Employees, clarifying the behavioural requirements for all employees in terms of professional ethics,
implementation of risk management. Each business department, as the primary entity business ethics, information confidentiality, integrity in employment, and conflict of interest management.
responsible for risk management, takes charge of daily risk identification and control. For the supply chain, the Company has developed the Code of Conduct for Social Responsibility, clearly
requiring all suppliers to comply with applicable laws and regulations and international standards, with
The Internal Audit Department identifies and tracks key risk points in operational activities a focus on topics including labour rights, safety and health, environmental protection, and business
through regular internal audits, special reviews, and risk assessments. It reports material ethics. We have also established ten red-line requirements covering child labour, forced labour, illegal
risk matters to the Audit Committee and the Board of Directors, promoting rectification and pollutant discharges, major safety incidents, and corruption and breaches of trust. Depending on the
continuous improvement of risk issues. circumstances, we will take measures such as requiring rectification, reducing allocation volumes, and
ultimately removing suppliers from our supplier system, thereby extending compliance requirements
across the supply chain. At the same time, through documents such as the Environmental Protection
Commitment, the Company further sets out requirements on environmental, occupational health and
safety, and pollution prevention and control for relevant parties including those involved in materials,
services, engineering, and waste management, and retains supervision and inspection as well as
rectification and accountability mechanisms, thereby strengthening compliance and fulfilment of
responsibilities by relevant parties.
Risk Identification and Assessment Mechanism
In accordance with the COSO Enterprise Risk Management Framework and the ISO
assessment mechanism to identify potential risks across multiple dimensions, including
strategy, operations, compliance, and environmental and social responsibility. Each
business department regularly identifies risks that may affect the Company’s operations
in light of production and operations, supply chain management, customer needs, and
changes in the policy environment. Through the risk assessment model, we conduct a
comprehensive analysis of the likelihood of occurrence and potential impacts of such risks,
and establish a prioritised ranking of risks.
In major business activities, such as investments, mergers and acquisitions, or the
admission of key suppliers, we engage professional third-party institutions to conduct due
diligence, comprehensively assess potential risks, and ensure that relevant decisions are
prudent and compliant.
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Anti-commercial Bribery and Anti-corruption
Governance
Shuanghuan Driveline adheres to a zero-tolerance policy towards corruption, fraud, and acts of established under the Committee to be responsible for day-to-day advancement, coordination and
improper transfer of benefits. We continue to improve our integrity governance system by formulating implementation. Relevant functional departments of each subsidiary and branch have designated part-
and implementing policy documents such as the Integrity Management Measures, the Ethics Evaluation time personnel to work collaboratively on integrity development. Meanwhile, we have established an
Implementation Guidelines of Zhejiang Shuanghuan, and the Entertainment Management Guidelines Internal Audit Department to supervise and inspect integrity risks in business operations, leads on non-
of Zhejiang Shuanghuan. In conjunction with the Code of Business Conduct to Employees, we set out compliance, and the implementation of systems.
clear standards on behavioural boundaries for all employees in terms of business ethics, information
For the supply chain, we extend integrity management to our partners, requiring suppliers to sign
confidentiality, integrity in the performance of duties, declaration of conflicts of interest, and interactions
relevant documents such as the Integrity Commitment. In the Code of Conduct for Social Responsibility,
with suppliers. Key positions are subject to stricter prohibitions and reporting requirements, strengthening
we explicitly set out the requirement to prohibit corruption and dishonest incidents, and have
the prevention and control of integrity-related risks in high-risk areas such as procurement, quality
established the following as baseline requirements for collaboration: no bribery, no gift-giving, no
management, and the supply chain.
improper affiliations, no falsification, no cutting corners, no commercial fraud, and honour commitment.
In terms of organisational structure, the Company has established an Integrity Management Committee, Depending on the circumstances, we take measures in response to violations, including requiring
led by the Chairman, with senior executives and general managers of subsidiaries serving as members, rectification, reducing allocation, and up to withdrawal from the supplier system, thereby continuously
to coordinate and lead the group’s integrity development overall. An Integrity Office has been fostering a fair, transparent, and trustworthy cooperative environment.
Strategy
Description of PotentialRisks/Opportunities Type Business and Financial Impacts Time Dimension
If integrity management is inadequate, this may result in administrative penalties, legal liabilities, restricted Medium term
Continued tightening of anti-corruption and anti-bribery Risk
cooperation and reputational damage, and increase rectification and compliance costs. (3-10 years)
Integrity governance capabilities will directly affect customer trust, the stability of supplier partnerships,
Stakeholders’ requirements for integrity in business Medium term
Risk and recognition in the capital markets. If management is weak, it may affect project acquisition and brand
operations are increasing (3-10 years)
image.
Continuously improving the anti-commercial bribery and anti-corruption mechanisms will help to
Enhanced integrity governance helps to maintain a fair Medium term
Opportunity standardise procurement and cooperation processes, enhance operational transparency, and reduce
and transparent cooperation environment (3-10 years)
losses from fraud as well as management friction costs.
Extending integrity initiatives, codes of conduct, and oversight mechanisms across the supply chain helps
Joint supply chain integrity initiatives help enhance Medium term
Opportunity drive partners to jointly enhance standards of business ethics and build a more standardised and stable
governance standards across the industrial chain (3-10 years)
industrial ecosystem.
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Impact, Risk, and Opportunity Management
Integrity risk identification Integrity promotion
The Company continues to improve its integrity The Company continues to strengthen
risk identification and prevention mechanisms. communication and promotion of a culture of integrity.
Led by the Integrity Office, we systematically By conducting integrity-themed training, producing
review job responsibilities, business processes, an integrity risk map, creating integrity comics, putting
and power operation nodes across key business up posters on integrity development, and distributing
segments such as procurement, supplier three-fold integrity promotional leaflets, we promote
management, quality inspection, warehousing the widespread dissemination of integrity concepts
management, and official vehicles, identify among employees. In addition, by combining
integrity risks that may exist, including potential measures such as promotional displays in office
benefit transfers, information leakage, non- premises, warning slogans, and public disclosure
compliant operations, and management of integrity-related supplies, we foster a clean and Integrity Training
misconduct, and develop an integrity risk map. upright cultural atmosphere.
Through the identification of risk points, scenario
analysis, and assignment of responsibilities
Each subsidiary organises the Integrity Culture Month Electronic promotional poster
activity based on actual circumstances, and releases
to specific roles, we further clarify integrity
the Special Action Report on Integrity Building. Taking
management requirements for key positions, key
Fundrive Technology as an example, focusing on the
processes, and key matters, and move the risk
theme of “Integrity in Mind, Commitment in Action”,
prevention and control threshold forward.
we carry out activities at the stages of launch and
On this basis, each subsidiary, in conjunction with preheating, essay collection and interaction, and
the special initiative on integrity development, selection and showcasing, including poster displays,
formulates targeted risk prevention and control promotion of integrity slogans, an all-employee
measures for the identified risk points, and we integrity kick-off meeting, the Management taking
promote each subsidiary to develop integrity the lead in signing and taking an oath on the Integrity
action plans in light of actual business scenarios, Commitment, an integrity culture essay competition,
forming a closed-loop management mechanism and the display of outstanding works. These initiatives
of risk identification–issue investigation– enhance employees’ sense of participation and
rectification implementation–continuous follow- cultural identification, and promote the transformation
up, and continuously enhancing the relevance, of the concept of integrity from an institutional
preventive capability, and effectiveness of requirement into a self-motivated code of conduct.
integrity governance.
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Comics Explain Integrity, Making Compliance Education Supervision mechanism improvement
Case More Engaging and Effective
The Company continues to improve its integrity supervision and whistleblowing management
mechanisms, and has established a comprehensive management system covering lead acceptance,
To further strengthen employees’ awareness of practising integrity and foster a clean and upright investigation and handling of issues, whistleblower protection, and cultural communication and
operating environment, Shuanghuan Driveline innovatively carries out integrity culture publicity and promotion. The Company has established multiple public whistleblowing channels, including a telephone
education activities at key milestones such as International Anti-Corruption Day. We transform the hotline, email, website links, and a WeChat public account. In areas with high staff turnover and a
originally rather serious and abstract integrity requirements into a comic format with greater readability relatively high concentration of integrity risks, the Company has also installed public notice boards for
and shareability. Focusing on integrity risk scenarios that are prone to occur and recur in the workplace, whistleblowing information, disclosing the whistleblowing hotline number and email address to facilitate
we use plain, vivid short stories to illustrate compliance red lines and behavioural boundaries, enabling employees and relevant stakeholders in reporting problem leads in a timely manner. We regularly
employees to deepen their understanding of integrity discipline, professional ethics, and compliance inspect and test the accessibility and effectiveness of whistleblowing channels at our subsidiaries to
requirements through relaxed reading. ensure that such channels are genuinely available, and that feedback is provided in a timely manner.
Phone:(0571)81671020
Email: lianjie@gearsnet.com
Whistleblowing Website: https: //www.gearsnet.com/wx/feedback
Channels
WeChat Public Account: Follow the official
Shuanghuan Driveline WeChat account, and tap on
the “Whole Life” menu at the bottom navigation bar,
Comics for International Anti-Corruption Day
then select “I Want to Report”.
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Integrity Management Metrics and Targets
Shuanghuan Driveline regularly conducts anti-corruption and anti-commercial bribery investigations.
During the reporting period, no cases related to commercial bribery or corruption occurred in the
Company.
During the reporting period
All employees received anti-corruption and anti-commercial bribery training upon
onboarding, with 100% employee coverage.
The Board of Directors conducted one anti-corruption and anti-commercial bribery training
session, with 100% coverage of Board members.
In terms of whistle-blower protection, Integrity Management Measures clearly stipulates that the identity
information of whistle-blowers and the contents of whistleblowing reports shall be kept strictly
confidential. During the registration, transfer, and use of leads, the Integrity Office carries out necessary
processing of information that may reveal the identity of whistle-blowers, so as to prevent the leakage
of personal information. A dedicated file archive is created for whistleblowing materials and managed
under sealed custody. No unauthorised access is permitted without approval, thereby effectively
safeguarding the legitimate rights and interests of whistleblowers and maintaining the seriousness and
credibility of the whistleblowing mechanism.
At the same time, we continuously integrate integrity awareness into employees’ daily work and lives.
Zhejiang Shuanghuan carries out an “Integrity Points Redemption” initiative. After employees proactively
surrender gifts, cash gifts, and other integrity-related items, dedicated personnel record them in a register and
disclose them annually. We award ethics assessment bonus points to employees who proactively surrender
integrity-related items, and link the assessment results to promotion, awards and other matters. Employees
may also use integrity points to redeem corresponding items, thereby enhancing employees’ proactiveness Shuanghuan Driveline Business Ethics and Compliance Training
in practising integrity through a balanced approach of incentives and constraints.
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Anti-unfair Competition
Target Review Intellectual property protection
Metrics 2025 Target Completion Status Notes Shuanghuan Driveline continues to strengthen intellectual property management by
formulating and implementing the Intellectual Property Management Policy. Through
Amount involved in measures such as trademark, patent, confidentiality, and authorisation management,
litigation or major we safeguard the security of innovative achievements and brand rights and
administrative penalties interests. The Company continues to advance the registration of trademarks and
during the reporting period
the filing of patent applications related to new products, protecting the technological
arising from the Company’s
unfair competition practices achievements generated through independent research and development. Internally,
we sign confidentiality agreements with personnel in key positions, clearly defining
confidentiality responsibilities; externally, we include trade secret protection clauses
when signing contracts with partners, suppliers, etc., thereby strengthening third-
party confidentiality obligations. At the same time, the Company standardises the
Shuanghuan Driveline adheres to lawful and compliant market competition activities, attaches importance to fair trading, management of trademark licensing and use, requiring all branches and subsidiaries
responsible marketing, and intellectual property protection, and continuously standardises market publicity, brand use, to carry out relevant use in accordance with written authorisation documents and to
and trade secret management, in order to prevent unfair competition risks and safeguard the legitimate rights and complete record-filing procedures as required, thereby reducing the risk of infringement
interests of us and our stakeholders. and improper use. During the reporting period, the Company obtained certificates for the
Intellectual Property Compliance Management System certification, further consolidating
the foundation for intellectual property compliance management.
Responsible marketing
Shuanghuan Driveline adheres to marketing principles of authenticity, accuracy, and prudence, ensuring that external
Through the ongoing management of
publicity content complies with the requirements of relevant laws and regulations. The Company strictly complies
responsible marketing and intellectual
with applicable provisions such as the Advertising Law of the People’s Republic of China, avoids the use of exaggerated
property protection, Shuanghuan
or misleading statements, and ensures that all commercial publicity is carried out on the basis of facts and verifiable
Driveline continuously strengthens
information. The marketing team works in coordination with the legal affairs team to conduct compliance checks on key
the foundations for combating unfair
publicity content, ensuring that external communications are carried out on a truthful and objective basis. At the same
competition, thereby driving the
time, the Company pays attention to the legal requirements in the regions where our overseas business operates. With
enterprise to develop steadily in a fair,
the support of professional legal expertise, we enhance the compliance of overseas publicity and marketing activities,
transparent, and compliant market
and continuously advances responsible marketing practices.
environment.
In 2025, we also organised legal training sessions, including “Common Legal Issues of Corporate Infringement and
Practical Handling”, to continuously enhance employees’ awareness of operating in compliance with laws and regulations
and their ability to identify risks.
Sustainability Report Appendix
Key Sustainability Performance Table
Environmental Performance
Metrics Unit 2023 2024 2025 Metrics Unit 2023 2024 2025
Total VOC emissions tonnes 17.21 20.54 14.24 Violations with major
case(s) 0 0 0
environment-related risk
Total NOx emissions tonnes 1.29 2.97 3.09
Total water withdrawal m3 1,202,399 987,881 966,749
Total SOX emissions tonnes / / 0
Total water consumption m3 / 491,812 399,359
Total COD emissions tonnes 4.58 6.20 5.70
Total water discharge m3 / 496,069 567,390
Total NH3-N emissions tonnes 0.26 0.84 0.28
tonnes/
TP tonnes / / 0.007 RMB10,000 1.59 1.10 1.05
industrial output
Total particulate matter Water consumption
tonnes / 3.42 2.08
emissions intensity tonnes/
RMB10,000
Total amount of hazardous 4.12 2.78 2.34
tonnes 2,739.45 3,470.81 4,187.36 industrial value
waste added
tonnes/
Comprehensive energy
Hazardous waste intensity RMB10,000 / 0.0039 0.0045
consumption (equivalent tce 52,431.90 61,096.14 71,262.87
output value
value)
tonnes/
RMB10,000
Hazardous waste intensity / 0.0098 0.010 Comprehensive energy
industrial value
consumption (calorific value tce 126,867.00 155,889.63 196,543.94
added
equivalent)
Total general waste tonnes 25,102.15 24,393.67 26,558.51
Natural gas 10,000 Nm? 297.91 334.57 379.27
tonnes/RMB10,000
General waste intensity / 0.027 0.0289
output value Gasoline tonnes 62.21 36.96 26.56
tonnes/RMB10,000
General waste intensity industrial value / 0.069 0.0644 Diesel tonnes 114.77 121.40 138.78
added
State grid electricity MWh 395,068.54 462,181.82 430,720.10
Total recycled and reused
tonnes / 26,327.4 27,143.76
waste Renewable Electricity MWh 9,589.47 6,649.81 109,687.86
Sustainability Report Appendix
Metrics Unit 2023 2024 2025 Social Performance
tce/RMB10,000 Metrics Unit 2023 2024 2025
industrial output
Energy consumption
intensity (equivalent R&D investment amount RMB10,000 38,374.52 45,604.29 49,051.16
value) tce/RMB10,000
industrial value 0.18 0.17 0.17
R&D Investment as a
added
percentage of main % 4.75 5.19 5.38
revenue
tce/RMB10,000 Number of R&D
industrial output personnel
Energy consumption
intensity (calorific value
equivalent) tce/RMB10,000 Percentage of R&D
% 13.9 15.1 14.27
industrial value 0.43 0.44 0.48 personnel
added
Number of invention
patents applied in core / 73 104 116
WEEE recycled as a business
percentage of EEE % 0 0 0
launched to market Number of patent
/ 15 29 24
applications
GHG emissions Number of invention
tonnes CO2e 295,460.24 263,841.62 258,240.13 / 12 31 12
(Scope 1 + Scope 2) patents granted
Number of valid patents / 357 428 475
Scope 1 direct GHG
tonnes CO2e 20,864.45 15,834.85 16,235.26
emissions
Total investment in rural
RMB10,000 / 98 103
revitalisation
Scope 2 indirect GHG
tonnes CO2e 274,595.79 248,006.76 242,004.87
emissions Number of major safety
and quality liability
cases 0 0 0
incidents related to
products and services
tonnes CO₂e/
Carbon emission intensity RMB10,000 0.39 0.29 0.28
Number of data security
industrial output
accidents during the cases 0 0 0
reporting period
CO₂e/
RMB10,000 Number of privacy leakage
Carbon emission intensity 1.01 0.74 0.63 incidents during the cases 0 0 0
industrial value
added reporting period
Sustainability Report Appendix
Governance Performance
Metrics Unit 2023 2024 2025 Metrics Unit 2023 2024 2025
Amount invested in work- Number of directors
related injury insurance
RMB10,000 393.65 569.40 679.55 who received anti-
persons 9 9 9
commercial bribery and
anti-corruption training
Coverage rate of work-
related injury insurance
% 100 100 100 Proportion of employees
receiving anti-
% 100 100 100
commercial bribery and
Number of safety
accidents
cases 0 0 0 anti-corruption training
Number of management
Total number of personnel receiving anti-
persons 7,263 8,333 8,982 persons 680 686 732
employees commercial bribery and
anti-corruption training
Among them: Male persons 5,448 6,344 6,907 Proportion of
management personnel
receiving anti- % 100 100 100
commercial bribery and
Female persons 1,815 1,989 2,075 anti-corruption training
Number of employees
Under 30 years old persons 3,017 3,608 3,734 receiving anti-
persons 7,037 7,263 8,982
commercial bribery and
anti-corruption training
Proportion of employees
receiving anti-
% 100 100 100
commercial bribery and
Number of business
cases 0 0 0
Over 50 years old persons 549 611 680 ethics violations
Number of litigation
cases involving lawsuits
Number of employee
training sessions
person-time 6,098 11,009 16,687 or major administrative
cases 0 0 0
penalties resulting from
the Company’s unfair
Annual training competition conduct
expenditure amount
RMB10,000 179.43 239.41 157.59
Number of cases related
to commercial bribery
cases 0 0 0
Training coverage rate % 68.5 82.7 86.71 or corruption of the
Company
Sustainability Report Appendix
GRI Content Index
No. Standards and Disclosure Items Location No. Standards and Disclosure Items Location
GRI 2: General Disclosures 2-15 Conflicts of interest /
Entities included in the organisation’s sustainability
reporting Collective knowledge of the highest governance
body
Evaluation of the performance of the highest
governance body
/
No restatements of information
during the reporting period
Activities, value chain and other business 2-20 Process to determine remuneration /
relationships
For details, please refer to the Strategy, policies and practices
section “Employee Information
- Outsourced Personnel” in the
Company’s 2025 Annual Report.
Governance 2-23 Policy commitments Unified in Perfect Harmony
Nomination and selection of the highest
governance body 2-25 Processes to remediate negative impacts Rooted in Steady Governance
Mechanisms for seeking advice and raising
Role of the highest governance body in concerns
overseeing the management of impacts
Role of the highest governance body in 2-28 Membership of associations /
sustainability reporting
Sustainability Report Appendix
No. Standards and Disclosure Items Location No. Standards and Disclosure Items Location
Stakeholder engagement GRI 205: Anti-corruption 2016
Communication and training about anti-corruption
policies and procedures
Confirmed incidents of corruption and actions
GRI 201: Economic Performance 205-3
taken
Rooted in Steady Governance
Financial implications and other risks and Legal actions for anti-competitive behaviour, anti-
opportunities due to climate change trust and monopoly practices
Defined benefit plan obligations and other GRI 207: Tax 2019
retirement plans
GRI 202: Market Presence 2016
Stakeholder engagement and management
concerning tax
/
Ratios of standard entry level wage by gender
compared to local minimum wage
/
Proportion of senior management hired from the
local community
/ GRI 301: Materials 2016
GRI 203: Indirect Economic Impacts 2016 301-1 Materials used by weight or volume Flowing with Green Circularity
GRI 204: Procurement Practices 2016 GRI 302: Energy 2016
Key Sustainability Performance 302-1 Energy consumption within the organisation Flowing with Green Circularity
Table
Sustainability Report Appendix
No. Standards and Disclosure Items Location No. Standards and Disclosure Items Location
Reductions in energy requirements of products 305-3 Other indirect (Scope 3) GHG emissions /
and services
GRI 303: Water and Effluents 2018
Nitrogen oxides (NOx), sulphur oxides (SOx), and Key Sustainability Performance
Waste generation and significant waste-related
Flowing with Green Circularity
GRI 304: Biodiversity 2016 306-2 Management of significant waste-related impacts Flowing with Green Circularity
Operational sites owned, leased, managed in, or 306-3 Waste generated Flowing with Green Circularity
biodiversity value outside protected areas
Significant impacts of activities, products and Flowing with Green Circularity
services on biodiversity
GRI 308: Supplier Environmental Assessment 2016
IUCN Red List species and national conservation list
species with habitats in areas affected by operations 308-1 Connected in Symbiotic Synergy
environmental criteria
Sustainability Report Appendix
No. Standards and Disclosure Items Location No. Standards and Disclosure Items Location
Negative environmental impacts in the supply Workers covered by an occupational health and
Unified in Perfect Harmony
chain and actions taken
GRI 401: Employment 2016
Benefits provided to full-time employees that are GRI 404: Training and Education 2016
Unified in Perfect Harmony
Programmes for upgrading employee skills and
Unified in Perfect Harmony
GRI 402: Labour/Management Relations 2016
Minimum notice periods regarding operational Percentage of employees receiving regular
/ 404-3 Unified in Perfect Harmony
performance and career development reviews
GRI 403: Occupational Health and Safety 2018
GRI 405: Diversity and Equal Opportunity 2016
Occupational health and safety management
Unified in Perfect Harmony
Hazard identification, risk assessment, and
Unified in Perfect Harmony Ratio of basic salary and remuneration of women
/
GRI 406: Non-discrimination 2016
Worker participation, consultation, and
Unified in Perfect Harmony Incidents of discrimination and corrective actions
Unified in Perfect Harmony
GRI 407: Freedom of Association and Collective Bargaining 2016
Operations and suppliers in which the right to
Prevention and mitigation of occupational health 407-1 freedom of association and collective bargaining Unified in Perfect Harmony
relationships
Sustainability Report Appendix
No. Standards and Disclosure Items Location No. Standards and Disclosure Items Location
GRI 408: Child Labour 2016 Negative social impacts in the supply chain and
actions taken
Operations and suppliers at significant risk for
incidents of child labour GRI 415: Public Policy 2016
GRI409: Forced or Compulsory Labour 2016
Operations and suppliers at significant risk for
incidents of forced or compulsory labour
Assessment of the health and safety impacts of
GRI 410: Security Practices 2016 416-1 Powered by Infinite Innovation
product and service categories
Security personnel trained in human rights policies
or procedures
/ Incidents of non-compliance concerning the health
and safety impacts of products and services
/
GRI 411: Rights of Indigenous Peoples 2016
GRI 417: Marketing and Labelling 2016
Incidents of violations involving rights of
indigenous peoples
/
Requirements for product and service information
and labelling
GRI 413: Local Communities 2016
Incidents of non-compliance concerning product
and service information and labelling
Operations with local community engagement,
impact assessments, and development programs
Incidents of non-compliance concerning marketing
communications
Operations with significant actual and potential
negative impacts on local communities
/ GRI 418: Customer Privacy 2016
GRI 414: Supplier Social Assessment 2016
Substantiated complaints concerning breaches of
customer privacy and losses of customer data
New suppliers that were screened using social
criteria
/
Sustainability Report Appendix
Content Index for the Shenzhen Stock Exchange Guideline No. 17 Content Index for the Shenzhen Stock Exchange Guideline No. 17
on Self-Regulation of Listed Companies - Sustainability Report on Self-Regulation of Listed Companies - Sustainability Report
Dimensions and Topics No. Location Dimensions and Topics No. Location
Article 21 Flowing with Green Circularity Rural
Section 1 Rural Article 39 Unified in Perfect Harmony
Revitalisation
Revitalisation
Article 22 Flowing with Green Circularity and Social
Contributions
Contributions Article 40 Unified in Perfect Harmony
to the Society
Article 23 Flowing with Green Circularity
Section 2
Innovation- Innovation Article 42 Powered by Infinite Innovation
Article 24 Flowing with Green Circularity
driven
Development
Section 1 Climate Response Article 25 Flowing with Green Circularity
and Ethics of Ethics of Science
Article 43 N/A
Science and and Technology
Article 26 Flowing with Green Circularity Technology
Social
Supply Chain
Flowing with Green Circularity Disclosure Article 45 Connected in Symbiotic Synergy
Security
Article 27 (Not Participating in Emission
Reduction Mechanism Projects)
Equal Treatment
Article 46 N/A
of SMEs
Section 3
Article 28 Flowing with Green Circularity Suppliers and
Product and
Clients
Environmental Service Safety and Article 47 Powered by Infinite Innovation
Pollutant Quality
Disclosure Article 30 Flowing with Green Circularity
Discharge
Waste Data Security and
Section 2 Article 31 Flowing with Green Circularity Article 48 Connected in Symbiotic Synergy
Disposal Customer Privacy
Pollution
Control and Ecosystem and Section 4
Employees Article 50 Unified in Perfect Harmony
Ecosystem Biodiversity Article 32 Flowing with Green Circularity Employees
Protection Protection
Section 1 Due Diligence Article 52 Rooted in Steady Governance
Environmental
Sustainability-
Compliance Article 33 Flowing with Green Circularity
Management Related
Corporate Governance Stakeholder
Mechanisms Article 53 Materiality Assessment
Energy Governance Engagement
Article 35 Flowing with Green Circularity Information
Utilisation
Related to Anti-
Section 3 Commercial
Resource Water Sustainable
Bribery Article 55 Rooted in Steady Governance
Utilisation Resources Article 36 Flowing with Green Circularity Development Section 2 and Anti-
and Circular Utilisation Disclosure Commercial Corruption
Economy Behaviours
Circular Anti-Unfair
Article 37 Flowing with Green Circularity Article 56 Rooted in Steady Governance
Economy Competition
Sustainability Report Appendix
Assurance Statement
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