CONTENTS
Opening Statement
Changhong's long-standing
foundation
building a solid base for development
advancing low-carbon development
advancing industrial upgrading
Reporting Guidelines 03 Optimizing the Corporate Governance System 23 Actively Address Climate Change 47 Driving breakthroughs in core technologies 77
Message from the Chairman 05 Strengthening Internal Control and Risk Prevention 30 Strict environmental compliance 56 Strengthening Product and Service Safety and Quality 88
About Sichuan Changhong 07 Adherence to Ethical Business Practices 35 Advancing robust green operations 60 Strengthening Data Privacy Management 96
Sustainable Development Management 11 Strengthening Investor Relations and Information 39 Enhancing resource utilization efficiency 61
Practicing Compliant Tax Governance 41 Strengthening biodiversity protection 74
Closing Statement
People-oriented Changhong
Safeguarding Employee Growth
Empowering Synergistic Development
Outlook 141 Improving Fair Employment Mechanisms 101 Deepening the Responsible Supply Chain Ecosystem 123
Appendix 143 Safeguarding Employee Rights and Well-being 104 Supporting All-around Rural Revitalization 135
Empowering Comprehensive Employee Development 107 Actively Fulfilling Social Responsibilities 138
Implementing Occupational Health and Safety 113
Reporting Guidelines Short Name Description
Short Name Full Name Short Name Full Name
Introduction Company, the Company, we
Sichuan Changhong Electric Co., Ltd. Sichuan Hongxin Software Sichuan Hongxin Software Co., Ltd.
Sichuan Changhong Electric Co., Ltd. (hereinafter referred to as "Sichuan Changhong" "the Company" or "we") adheres to the principles and Sichuan Changhong
of transparency and openness in compiling this report, which aims to provide shareholders, investors, customers, employees, non-
profit organizations media, and government bodies with a comprehensive overview of Sichuan Changhong and its subsidiaries' actual Sichuan Changhong Minsheng Logistics
The Group The Company and its subsidiaries Changhong Minsheng
performance, risks, and opportunities in sustainable development. This report has been prepared by the Company's ESG Management Co., Ltd.
Office. Sichuan Changhong Electronics Holding Changhong China Smart
Changhong Holding Group Changhong Smart Display (China)
Group Co., Ltd. Display
Guangdong Changhong Guangdong Changhong Electronics Co., Sichuan Changhong Real
Sichuan Changhong Real Estate Co.,Ltd.
Electronics Ltd. Estate
Scope
Sichuan Changhong Kuaiyidian Electrical
Changhong (Hong Kong) Changhong (Hong Kong) Trading Limited Sichuan Kuaiyidian
The "Annual ESG Report" spans from January 1, 2025, to December 31, 2025. Some sections may cover a longer period, and clarifications Service Co., Ltd.
will be provided where applicable. The Report defines impact horizons as follows: short-term (within one year after the reporting
period), medium-term (one to five years after the reporting period), and long-term (beyond five years). Sichuan Changhong Air Conditioner Co., Sichuan Changhong Homwee Technology
Changhong Air Conditioner Changhong Homwee
Ltd. Co., Ltd.
Sichuan Changhong Packing Printing Sichuan Zhiyijia Network Technology Co.,
Changhong Packaging Zhiyijia
Co.,Ltd. Ltd.
Preparation Basis Sichuan Changhong Sichuan Changhong NeoNet Technology Sichuan Mianyang Honghuan Technology
Honghuan Technology
NeoNet Technology Co., Ltd. Co., Ltd.
The preparation of this report primarily references Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed
Companies—Sustainability Report (Trial), Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE—Compilation Sichuan ChangHong mold and plastic Sichuan Changhong Network Technology
of Sustainable Development Reports, State-Owned Enterprise Listed Company ESG Special Report Reference Indicator System, GRI Changhong Moulding Changhong Network
tech Co., Ltd. Co., Ltd.
Sustainability Reporting Standards (GRI Standards), United Nations Sustainable Development Goals (SDGs), and Chinese Enterprise
Sustainability Reporting Writing Guidelines (CASS-ESG 6.0). Sichuan Changhong Sichuan Changhong Component Technology Guangyuan Changhong Electronic
Component Technology Co., Ltd. Guangyuan Changhong
Technology Co., Ltd.
Sichuan Changhong Precision Electronics Changhong International Holding
Content Source and Reliability Assurance Changhong Precision Changhong International
Technology Co.,Ltd. (HK) Limited
The text materials, data and cases cited in this report are all from the Company's internal statistical data, relevant documents and
management systems. All information has been strictly reviewed within the Company and finally approved by the management, ESG 081 Electronics Group 081 Electronics Group Co.,Ltd Changhong Indonesia Electric Co.,
Changhong Indonesia
Management Committee and Board of Directors. The Company regularly verifies the effectiveness of the data collection process and Ltd.
data management system to ensure the accuracy and reliability of this report. The Company promises that there are no false records SICHUAN CHANGHONG JIJIA PRECISION
or misleading statements in this report, and it is responsible for the authenticity, accuracy, and completeness of the report's contents. Changhong Jijia Changhong Europe Changhong Europe Electric s. r. o.
INDUSTRY CO., LTD
Sichuan Changhong Mianyang Changhong Mianyang Changhong Technology Co.,
Sichuan Changhong Battery Co., Ltd.
Disclaimer Battery Technology Ltd.
This report may contain forward-looking statements that are based on the Company's reasonable projections and expectations of Zhongshan Changhong Zhongshan Changhong Electric Co., Hongshang Construction Sichuan Hongshang Construction
possible or imminent business activities, events or developments. However, due to various uncontrollable factors such as market Electric Ltd. Engineering Engineering Co., Ltd.
environment and policy changes, actual results may differ from these forward-looking statements. As such, these statements should
not be used as the primary basis for investments. Changhong Meiling Changhong Meiling Co., Ltd. Changhong Innovation Sichuan Changhong Innovation
Investment Investment Co., Ltd.
Changhong Huayi Changhong Huayi Compressor Co., Chengdu Changhong Chengdu Changhong Electronic
Acquisition Method Compressor Ltd. Electronic Technology Technology Co., Ltd.
This report is prepared in both Chinese and English languages and will be published in electronic form. In case of any discrepancies
between the two language versions, the Chinese version shall prevail. Investors and the public can access and download the report from Changhong Jiahua Changhong Jiahua Holdings Limited Sichuan Changhong Sichuan Changhong Gerun Environmental
the official website of Shanghai Stock Exchange. If you have any questions, suggestions, or feedback regarding this report, please feel Gerun Protection Technology Co., Ltd.
free to contact us via email at 600839@changhong.com, and we will reply to and deal with your feedback as soon as possible.
Zhongke Meiling Zhongke Meiling Cryogenics Co., Changhong Electronic Sichuan Changhong Electronic Components
Cryogenics Ltd. Components Co., Ltd.
Message from the Leadership
As time renews, new chapters unfold. 2025 marks the final year of the 14th Five-Year Plan. Despite a complex and rapidly evolving
external environment and intensifying market competition, all Changhong employees, together with our partners and all sectors of Fostering a People-Centered and Inclusive Ecosystem.
society, worked hand in hand to achieve mutual benefit and win-win outcomes, pressing ahead with unwavering commitment on the In 2025, we placed strong emphasis on stakeholder expectations and intergrated a “people-centered” and “responsibility-driven”
journey toward high-quality development. Over the past year, we have fully embodied the Changhong spirit of "hard work, pioneering approach into our development strategy, striving to create long-term shared value through concrete actions. We upheld fair employment
initiative, perseverance, and the pursuit of excellence", adhered to our annual operating principles of "seizing opportunities in risk practices, continuously enhanced compensation, benefits, and performance management systems, and provided diversified career
response, strengthening foundations to enhance quality and efficiency, and pursuing development through integration and innovation", development pathways and systematic training programs. We strictly enforced occupational health and safety standards, ensuring that
we continuously improved our modern corporate governance system, deepened our green and low-carbon transition, strengthened over 46,000 employees collaborated supported in their professional growth, rights protection, and long-term development. Across the
lean management and effective operations, and achieved new breakthroughs in corporate development, bringing the 14th Five-Year value chain, we collaborated closely with partners to strengthen supply chain resilience, standardized procurement practices, ensured
Plan to a successful conclusion. For the full year, the Company recorded operating revenue of RMB 108.816 billion, up 4.94% year on fair treatment of SMEs, and advanced full-lifecycle ESG management for suppliers. During the reporting period, the Company was
year, and net profit attributable to shareholders of the parent company of RMB 989 million, up 40.56% year on year. awarded the title of “China Supply Chain ESG Management Demonstration Enterprise”. We actively fulfilled our social responsibilities
by focusing on industrial upgrading, talent cultivation, cultural development, and consumption-based assistance, among other areas.
Strengthening the foundations of decision-making to enable sustainable long-term development.
We invested more than RMB 17 million to conscientiously implement the rural revitalization strategy, improve the well-being of people
In 2025, we advanced the modernization of our corporate governance system in greater depth, revised and improved governance rules in less-developed areas, and join hands with all parties to build a mutually beneficial and thriving ecosystem, contributing Changhong’s
and procedures in strict alignment with regulatory requirements, and consistently treated compliant operations as the cornerstone for strength to the sustainable development of society.
steady and long-term development. We continued to optimize the composition and diversity of the Board of Directors, improved the
evaluation mechanism for directors’ performance of duties, and organized eight training sessions on duty performance capabilities
throughout the year, thereby continuously enhancing the Board’s operational effectiveness and the quality of scientific decision- On the great journey of the new era, the blueprint for the 15th Five-Year Plan has already unfolded.
making. During the reporting period, the Company convened three Meetings of Shareholders and 23 meetings of the Board of Directors. Looking ahead to 2026, we will remain committed to high-quality development and the goals of carbon peaking and carbon neutrality.
Directors’ attendance rate and the approval rate for submitted proposals were both 100%. The Company was honored with the “2025 With a more open mindset, we will embrace change; with stronger governance, we will reinforce our foundations; with decisive actions,
Best Practice Case for Boards of Directors” and the “2025 Best Practice Case for Board Office” by the China Association for Public we will address climate challenges; with innovation, we will shape the future; and with a deep sense of responsibility, we will contribute
Companies.The company published four periodic reports, 105 interim announcements and 46 other reports and documents, and was to society. We stand ready to work hand in hand with partners from all sectors, advance together toward shared long-term goals,
awarded an ‘A’ rating for information disclosure by the Shanghai Stock Exchange. We embedded compliance and internal control and strive to write a new chapter for intelligent manufacturing in China amid the momentum of new quality productive forces, while
throughout the entire process of business operations, optimized the management of the Three Lines of Defense and the Three Lists, continuing to contribute Changhong’s strength to the comprehensive construction of a modern socialist country.
and strengthened regular risk screening and compliance control across all units, operational links, and key areas. During the year,
all functional departments revised and improved 85 internal management policies, and 63 sales management policies of overseas
subsidiaries were optimized. The Company’s internal control case was selected as a “2025 Best Practice Case for Internal Control” by
the China Association for Public Companies, ranking first among local state-owned enterprises nationwide.
Board of Directors Statement
Focusing on low-carbon operations and leading green collaboration.
In 2025, we actively responded to China’s dual carbon goals by embedding green development throughout the business value chain
and systematically advancing energy conservation and carbon reduction. We have continuously promoted green (zero-carbon) factory As the highest decision-making body for ESG affairs, the Board of Directors has set up the ESG Management Committee
certification for many years and achieved outstanding results. Changhong Network Technology was recognized as a national-level to assist in relevant work. The committee is responsible for formulating ESG strategies, managing ESG-related issues,
green factory, while Sichuan Changhong, Changhong Air Conditioning, and Changhong Electronic Components were designated as ensuring alignment with the Company's business objectives, and continuously improving ESG performance.
provincial-level green factories. Changhong Huayi obtained SGS Zero Carbon Factory certification, marking a significant milestone
in our green manufacturing journey. We continued to enhance our environmental management system, with 27 entities maintaining The Company has set ESG strategic objectives related to its business operations. The Board of Directors has reviewed
valid ISO 14001 certification during the reporting period. Through strengthened source prevention and process control, we identified and discussed the establishment and progress of the objectives, and all ESG initiatives have achieved phased progress
and rectified 1,027 environmental risks and delivered environmental training to 33,758 participants, further improving environmental as planned.
awareness and capabilities across our workforce. We are committed to building a green supply chain by incorporating environmental
compliance into supplier onboarding as a veto criterion and encouraging nearly 30 key suppliers to participate in low-carbon initiatives,
thereby advancing the green transition across the entire industrial chain. This report details the Company's achievements in ESG, which was reviewed and approved by the Board of Directors on
April 23, 2026.
Deepening Digital and Intelligent Integration and Driving Gains in Quality and Efficiency.
In 2025, we remained committed to innovation-driven development, advanced technological and product innovation, and fully
implemented the “AI+” initiative. We deeply embedded AI technologies across all scenarios of product R&D, production and
manufacturing, and enterprise operations, taking solid steps toward fostering new productive forces and advancing the Company’s
high-quality development. We launched the industry’s first AI-powered “healing” TV, introduced the M Fresh Ultra refrigerator series,
setting a new benchmark in freshness preservation, and released premium air-conditioning products such as the “Shanshuijian” and
“Living & Dining Room PRO” series, incorporating AI-driven airflow optimization, outlet design, and intelligent control to better meet
user needs. We continued to advance intelligent and digital transformation initiatives. Changhong China Smart Display was recognized
as a national-level “Excellence Smart Factory”, and six factories were named among the first batch of advanced smart factories in
Sichuan Province. These achievements significantly enhanced our intelligent manufacturing capabilities and operational quality and
efficiency. In addition, we implemented AI-powered operations and accelerated enterprise-wide digitalization, including upgrades to
digital HR and intelligent finance systems, further improving operational and managerial efficiency and quality.
About Sichuan Changhong
Company Overview Corporate Culture
Originally founded as a state-owned factory in 1958, Sichuan Changhong was incorporated as a joint-stock company in 1988. In March Sichuan Changhong adheres to the philosophy of "Technology-powered Changhong, Creating a Better Life", seizing opportunities
four listed subsidiaries: Changhong Meiling (stock code: 000521.SZ), Changhong Huayi (stock code: 000404.SZ), Changhong Jiahua transformation and upgrading, continuously strengthening its core industries through dual engines of steady development and quality
(stock code: 03991.HK), Zhongke Meiling (stock code: 835892.BJ), and one company listed on the NEEQ Innovation Layer: Changhong improvement. It nurtures new growth drivers in emerging industries and promotes the rapid growth of potential businesses. Through
Minsheng (stock code: 836237.NQ). Over decades of development, from building a foundation in color TVs to expanding into various multiple efforts, the Company enhances its core competitiveness, building a comprehensive set of advantages and steadily advancing
fields of information electronics, the Company has evolved into a global, diversified technology enterprise group with business spanning toward its ambitious goal of becoming a world-class electronic information enterprise.
smart home appliances, general equipment R&D and manufacturing, and integrated ICT services.
Development History
Responding to the national call, The first automatic assembly line The state-owned Changhong Machin- Changhong was the first in the domestic Won the title of "China's Largest Color TV
Changhong seized the opportunity was introduced from Panasonic in ery Factory was the initiator behind the color TV industry to achieve an annual Base" and "King of Color TV"
and entered the television industry. Japan, with a daily output of 1,000 establishment of Sichuan Changhong- output exceeding one million units.
units per shift. Factory initiated the establishment of
Sichuan Changhong
Registered trademark "Changhong" It is listed and traded on the Shanghai Stock The Product Division of Changhong Air
for the first time
Trial-produced the first color TV Changhong became the first enterprise in
China whose TV production exceeded ten
million units, with a market share of 35%.
Listed Zhongke Meiling Cryogenics Electric (now Changhong Meiling)
on Beijing Stock Exchange Changhong Jiahua was listed on the 2018 2004
Main Board of the Hong Kong Stock Acquire 081 Electronics Group 2008 Jointly contribute capital to
Exchange. Acquired Huayi Compressor (now establish Changhong Chaohua
Changhong Huayi Compressor) (now Changhong Jiaohua).
Acquired Sichuan Changhong Battery
Business Architecture Award Name Awarding Organization
Brand and Products
China National Certification Center
Smart Home Appliances General Equipment Manufacturing Awarded the first “AAA Well-known Trademark” in the television industry
(Beijing)
Changhong Air Conditioning brand awarded "2025-2026 China Air Conditioning Industry China Air Conditioning Industry
Changhong China Smart Display,
Changhong Huayi Pioneer in Craftsmanship Quality" Summit Forum Organizing Committee
Guangdong Changhong
Smart display industry, primarily Fully enclosed piston compressors, China Household Appliances and
Changhong AI TV awarded the 2025 AWE Aplan Award 85Q10T MAX
focused on televisions air-conditioning compressors for Consumer Electronics Expo
new energy vehicles
Changhong Meiling
CHANGHONG Panda Lazy Ultra Air Conditioner recognized as the “2025-2026 China Air China Air Conditioning Industry
Refrigerators freezers, air conditioners, Conditioning Industry Green Smart Enjoyment Star” Summit Forum Organizing Committee
washing machines, kitchen appliances,
small household appliances, biomedical Changhong Pro Shared Air Conditioner for Dining and Living Room recognized as the China Air Conditioning Industry
equipment “2025–2026 China Air Conditioning Industry Dual-purpose Comfort Star” Summit Forum Organizing Committee
Innovation Category
Changhong’s smart display terminal facility was recognized as a national-level “Excellence Ministry of Industry and Information
ICT Comprehensive Services – Smart Factory” Technology (MIIT)
Intermediate Products 2.54%
The "Multi-scenario Discrete Manufacturing Cloud-end Collaborative Computing Key
Sichuan Provincial People's
Lean manufacturing services Technologies and Applications" project awarded the 2024 Sichuan Province Science and
Changhong Jiahua Government
Other Industries represented by electronics Technology Progress Second Prize
ICT product distribution and provision of manufacturing services (EMS)
Network Communication Terminals: Selected for the first batch of "Artificial Intelligence and Robotics Application Industry Star Sichuan Provincial Science and
professional solutions 1.49% Enterprises" in Sichuan Province Technology Department
Logistics Services: 2.13% Selected for the National "High-Quality Dataset Construction Pilot Work List" in the
Sichuan Hongxin Software
National Data Bureau
Special Business: 2.78% Embodied Intelligence Field
Enterprise digitalization, smart city
solutions Real Estate: 0.74%
Selected for the "2025 Trusted Data Space Innovation and Development Pilot List" National Data Bureau
…
Responsibility Honors
Award Name Awarding Organization
Governance 2025 Business Performance
Received an “A” rating for information disclosure in 2025 Shanghai Stock Exchange (SSE)
Net Profit Attributable to
Awarded “2025 Outstanding Practice Case Award for the Board of Directors of Listed China Association for Public Year-on-Year Year-on-Year
Year Operating Revenue Shareholders of the Listed
Comparison Comparison
Companies” Companies (CAPCO) Company
China Association for Public
Awarded “ 2025 Best Practice Case Award for the Board Office of Listed Companies”
Awarded “ 2025 Best Practice Case in Sustainable Development of Listed Companies”
Companies (CAPCO)
China Association for Public
RMB 97.456 billion 5.38 % RMB 688 million 46.98 %
Companies (CAPCO)
China Association for Public
Awarded “Best Practice for 2024 Annual Results Briefing of Listed Companies”
Companies (CAPCO) 2024
RMB billion % RMB million %
Selected as one of the “2025 China ESG Pioneer 100 Listed Companies” China Media Group (CMG)
“Golden Peak” Excellent Case for 2025 CNR Network Finance Center
RMB billion % RMB million %
Received an ESG “AA” rating from Wind and selected for the Wind China Listed Companies
Wind
ESG Best Practice 100 (Large-cap Category)
Sustainable Development Management ESG Strategy and Goals
The Company places high importance on sustainable development (ESG) management, continuously improving its sustainable Sichuan Changhong is firmly committed to pursuing a path of high-quality, sustainable development. The Company actively responds
development management system. In 2025, the Company revised the Board ESG Management Committee Implementation Rules, to China’s strategic deployment requirement for “carbon peaking and carbon neutrality” and supports the United Nations Sustainable
further refining its ESG responsibilities and mechanisms in accordance with the latest ESG requirements from the Shanghai Stock Development Goals (SDGs) through concrete actions. While pursuing economic benefits, the Company integrates sustainable
Exchange. development into its corporate strategy, daily operations, and management practices. It actively fulfills its environmental, social, and
governance responsibilities, promoting harmony between enterprise and society, with the goal of achieving long-term, high-quality
sustainable development and becoming an industry-leading sustainable enterprise.
ESG Governance Structure
The Company has established a “Decision-Making, Management, and Execution" three-tier ESG governance structure. The Board of
Green transition and development
Directors is the highest governing and decision-making body for ESG work; the Company has formed an ESG Management Committee,
responsible for overseeing ESG-related matters; the Company has also set up an ESG Management Office as the executive layer, We have established dual carbon targets to achieve peak carbon peak in our operations by 2030 and carbon neutrality by 2049.
responsible for implementing ESG initiatives, preparing the annual ESG report, and other related tasks. At the same time, the Company We are advancing the development of low-carbon industrial parks, aiming to achieve rooftop photovoltaic coverage across our
actively promotes the establishment of ESG task forces, allocating different indicators from the environmental, social, and governance parks by 2030. Based on 2021 levels, we target a 10% reduction in energy consumption intensity (energy use per RMB 10,000
dimensions to various functional management departments. A cross-departmental collaboration mechanism has been established, of output value) and a 10% reduction in greenhouse gas emission intensity (GHG emissions per RMB 10,000 of output value) by
creating a responsibility system with vertical and horizontal coordination, to ensure that all tasks are effectively executed. 2030.
Fulfilling Social Responsibility Advancing Smart Transformation
Decision-Makers
Board Members Responsible for reviewing and making decisions on ESG matters Promote rural revitaliza- Deepen the application of AI
Board of Directors submitted by the ESG Management Committee. tion, support public wel- technology and improve digital
fare efforts, help drive in- management capabilities. With
Management Level The Board consists of 5 come growth and community innovation as the core driving
Primarily responsible for studying ESG strategies and objectives, Strategic
members, including the wealth, and implement effec- force of the ESG strategy, we
guiding and overseeing the implementation of ESG work, reviewing Objectives
Chairman, who serves as tive support measures to de- will continuously enhance ESG
ESG Management the Company's annual ESG report and major ESG-related matters,
the Chairperson of the ESG liver rapid results. practices through technological
Committee and submitting these for Board review.
Management Committee. innovation, process upgrades,
and management innovation.
Execution and Coordination
The Company's Board
Layer Primarily responsible for coordinating ESG affairs, preparing
Secretary also serves as
and disclosing the annual ESG report, and conducting annual
the Director of the ESG
ESG Management Office ESG summaries and evaluations.
Management Office.
Strengthening the Foundation of Governance Optimizing the supply ecosystem
Execution Level Responsible for managing and executing ESG-related issues Strengthening the Foundation of Governance: Continuously We are establishing a full lifecycle ESG management
and indicators for their respective units. Each unit establishes improving corporate governance operating mechanisms, system for supplier onboarding, evaluation, and exit. By
Functional departments
ESG liaison personnel to coordinate internal ESG matters. standardizing corporate operations, and establishing the 2030, 100% of suppliers will be required to commit to
and subsidiaries
Business Units Each unit is responsible for providing annual ESG information objective of “no material governance deficiencies and no ESG responsibilities as part of our onboarding principles,
and managing, improving, and optimizing the relevant issues. material violations of laws and regulations within the next and we will conduct supervision and assessments of
three years.” suppliers’ fulfillment of social responsibilities.
Decision-making Process
The ESG The ESG Implementation will
Each subsidiary and proceed upon approval
Management Management
functional department Board Review by the Board of
Office consolidates, Committee Directors, and all units
submits ESG proposal shall report back on
reviews, and drafts reviews the
materials. the execution results.
proposals. proposals.
ESG Capability Building ESG Awards and Ratings
In 2025, the Company was awarded several prestigious ESG honors, including the "2025 China ESG Pioneer Listed Companies Top
Commission, the "2025 Best Sustainable Development Practices Case for Listed Companies" by the China Listed Companies Association,
the "Wind China ESG Best Practices 100 (Large-cap)" award, the "Third ESG New Benchmark Enterprise Award" by Securities Star, and
ESG Professionals the "2025 Annual 'Golden Peak' Excellent Case" by China National Radio's Finance Division.
The Company's ESG rating from wind improved from A to AA in 2025, and it received A ratings from both the CSI Index and the Huazheng
Index. The Company also maintained excellent ratings with other specialized ESG rating agencies, demonstrating its outstanding ESG
The Company's Board has established an ESG Management Committee, which in turn has set up the ESG Management
management and practices.
Office. The ESG Management Office is staffed with professionals who have backgrounds and experience in environmental
economics and ESG-related fields. They are responsible for coordinating and executing specific ESG tasks. Additionally,
specialized departments have been set up for environmental, occupational health, and safety management, energy and
carbon emission management, and other relevant areas, with specialized personnel who possess skills across all ESG
dimensions, working collaboratively to advance the Company's sustainable development.
ESG Training
The Company actively conducts specialized training to enhance the ESG expertise of relevant personnel. The
training includes online and offline ESG-focused courses from the Shanghai Stock Exchange and the Listed
Companies Association, as well as specialized training provided by professional ESG consulting firms hired
by the Company. It also covers training on environmental protection, occupational health and work safety.
In 2025, the Company conducted five ESG-specific training sessions, with a 100% participation rate from
relevant personnel in the ESG Management Office. Additionally, the Company actively organizes ESG-
focused exchanges and learning sessions with other listed companies. In 2025, the Company conducted
dedicated exchanges on ESG ratings with top-performing listed companies. Through training and learning,
Selected as a “2025 Best Practice Case for Sustainable Wind
the ESG expertise of relevant personnel has been further enhanced.
Development of Listed Companies” by the China Association "China Listed Companies ESG Best Practices 100 (Large-cap)"
for Public Companies
ESG Evaluation
The Company has established an ESG evaluation and recognition mechanism. For two consecutive years, it has
conducted ESG evaluations across its subsidiaries. In 2025, the evaluation criteria were further refined, with
assessments made on various dimensions, including the performance of listed subsidiaries, non-listed subsidiaries'
issue completeness, performance, and practical case studies. A total of two listed subsidiaries with excellent ESG
performance, two non-listed subsidiaries, and two "ESG Pioneers" were selected. By establishing role models and
promoting best practices, the Company aims to enhance its ESG competitiveness and solidify its management
foundation for sustainable development.
China National Radio's Finance Division Securities Star
"2025 Annual ‘Golden Peak' Excellent Case" "Third ESG New Benchmark Enterprise Award"
Double Materiality Analysis
Environmental Issues Social Issues Governance Issues
In accordance with the relevant requirements of the Shanghai Stock Exchange, the Company has carried out a material topic
identification process.
Ecosystem and Biodiversity Protection Intellectual Property Management Internal Control and Comprehensive
Risk Management
Environmental Compliance Management Controversial Procurement
Topic Materiality Assessment Process Anti-Monopoly and Fair Competition
Waste disposal Social Contribution
Due diligence
Pollutant emissions Rural Revitalization
Sustainable Development Topic Materiality Assessment Process of Sichuan Changhong (2025)
Stakeholder communication
Water Resource Utilization Data Security and Customer Privacy
Protection Corporate Governance
Step 1 Circular Economy and Recycling
By studying and analyzing the main Sustainable development reporting standards Industry Leadership and Cooperation Anti-Commercial Bribery and Anti-
Background Research Product Carbon Footprint
and guidelines at home and abroad, and aligning them with the Company’s business Corruption
and Business Analysis – Tech Ethics
structure, we identified 29 potential material topics and compiled into a preliminary Raw Materials
Building the Sustainable Tax management
topic library (see table below). Supply Chain Security
Development Topic Library Energy Utilization
Innovation-Driven Development
Response to Climate Change
Product and Service Quality and Safety
A survey was developed to identify the significance of issues, assessing their impact and Employee
financial importance, and was conducted with stakeholders. Equal Treatment of SMEs
The ESG Management Committee, in collaboration with stakeholders, assessed the
significant or potential economic, social, and environmental impacts of issues. Results of Double Materiality Analysis
Step 2 Through the above steps, Sichuan Changhong identified 8 issues with both financial and impact significance, 1 issue with financial
significance but no impact significance, 11 issues with impact significance but no financial significance, and 9 issues with neither financial
Topic Identification and 2-3 Financial Materiality Assessment nor impact significance. Among them, climate change response, energy use, supply chain security, innovation-driven development,
Evaluation The ESG Management Committee, together with stakeholders, evaluated the short- product and service quality and safety, employees, corporate governance, anti-bribery and anti-corruption, and tax management are
term, mid-term, and long-term impacts of issues on the Company's business model, financially significant. The Company will provide detailed governance, strategy, risk, impact and opportunity management, indicators,
operations, development strategy, and financial condition, while organizing relevant and goals for these issues in the report.
departments for review and confirmation.
High Double Materiality Matrix
The Company organized internal experts and key departments to review and confirm the
financial and impact significance of the issues. High impact materiality but not financially material Both financially material and impact material
Ecosystem and Biodiversity Protection Environmental Compliance
Management
Response to Climate Change
Intellectual Property Management
Innovation-Driven Development
Step 3 Based on the evaluation data from Step 2, a 2025 materiality matrix was constructed to Controversial Procurement Pollutant Energy
Waste disposal Supply Chain Security
emissions Utilization
Impact Materiality
Topic Materiality Matrix determine the materiality of topics for the current year.
Internal Control and Comprehensive Social Contribution Rural Revitalization
Risk Management Product and Service Quality and Safety
Step 4 Anti-Monopoly and Fair Competition Data Security and Customer Privacy Employee Corporate Anti-Commercial Bribery and Anti-Corruption
Protection Governance
Guided by the analysis results, the Company carried out targeted disclosures and
Topic Disclosure and practices. Equal Treatment of SMEs Water Resource Utilization Tax management
Practice
Industry Leadership and Cooperation Circular Economy Tech Ethics
and Recycling
Due diligence Stakeholder Product Raw Materials
communication Carbon
Sustainable Development Topic Library Footprint
With reference to the No.14 Guidelines for Self-regulation of Listed Companies of Shanghai Stock Exchange — Sustainable Development
Report (Trial), and in consideration of the macro policy context of the regions where the Company operates, the characteristics of its Neither financially material nor impact material Financially material but not impact material
Low
industry, and its stage of development, the Company analyzed the relevant impacts, risks, and opportunities of sustainable development High
and compiled sustainable development topic library as follows: Financial Materiality
Due diligence
Sichuan Changhong continues to improve its due diligence governance system and specialized management systems, covering core
Stakeholder communication business areas such as investment and acquisitions, supply chain, and overseas operations. The Company conducts multidimensional
due diligence through an internal and external coordination model, establishes risk grading and remediation tracking mechanisms,
The Company has attached great importance to the expectations and demands of all stakeholders, actively engaging in dialogue and effectively identifies and rectifies potential risks, and strengthens personnel capacity building and process supervision and evaluation to
cooperation with them. To facilitate effective communication with all parties, the Group has made ongoing efforts to develop diverse enhance the effectiveness of due diligence work. In the future, the Company will continue to deepen ESG due diligence, improve digital
communication channels and methods, enhance the quality of information disclosure, and promptly respond to stakeholder demands. management capabilities, strengthen supply chain empowerment, and drive quality and efficiency improvements in due diligence work.
Stakeholder Demands and Expectations Communication and Response Stakeholder Demands and Expectations Communication and Response
• Exhibition
• • Transparent Procurement
• •
Compliance Operation
Official Website
• •
Symposium
Tax Payment According to Law Honest Cooperation
• • On-site Investigation
• •
On-site Interview and Investigation
Anti-corruption Win-win Cooperation
• • Real-time Communication
• •
Work Report
Government or Supervisory Authority Policy Response Product Responsibility
Software
Supplier
• General Meeting of Shareholders
• Corporate Governance • Technical Exchanges
• Investor Exchanges
• Risk Management • Scientific and Technological
• On-site Investigation • Industry Activities
• Return on Investment Development
• Call and Meeting • Calls and e-mails
• Information Disclosure • Industry Progress
• E-mail and Online Interactive Platform
Shareholder/Investor
Industry Association or Partner • Product Responsibility
• P rote ct i o n o f E m p l o y e e s '
Rights and Interests • Labor Union
• Employee Remuneration and • Daily Interview • Pollution Discharge
Benefits • Employee Symposium • Product Responsibility • On-site Interview
• Employee Health and Safety • Occupational, Health and Safety Training • Protection of Employees' Rights • Press Conference
Employee • E m p l o y e e Tra i n i n g a n d • Employee Satisfaction Survey and Interests • Social Media Platform
Development Media • Response to Climate Change
• Product Quality Assurance
• Customer Return Visits
• Customer Rights and Interests • Regular Return Visits
• Online Customer Service Hotline • Social Participation
Protection • Dedication to Public Welfare
• Social Media Platform • Public Welfare
• Customer Privacy Protection • School-Enterprise Employment
• Customer Satisfaction Survey • Employment Promotion
Customer • Product Service Guarantee Cooperation
Public Welfare Organization or Community
Organization
There were no acts of unfair competition. There were no major internal control deficiencies, The Company's internal control case was selected as a "2025 Best Practice Case for Internal Control of Chinese Listed Companies
Governance Information
nor any major non - compliance incidents. by the China Association for Public Companies, ranking first among local state-owned enterprise cases nationwide.
evaluation for information disclosure from the Shanghai Stock Exchange.
From 2017 to 2025, the Company implemented cash dividends for nine consecutive dar years,
totaling approximately RMB 1.173 billion in dividends. 1,852 special audits were conducted, achieving full audit coverage of the Company's business units and key economic areas.
The Company answered 256 investor hotline calls and responded to 253 inquiries on the
Shanghai Stock Exchange's e-interaction platform, achieving a 100% response rate. The Company received an "AA" rating in the 2025 Wind ESG evaluation and was included in the Best Practices 100 list.
management systems for overseas subsidiaries were optimized. for Public Companies.
Environmental Information Continuously optimizing the ISO 14001 Environmental Management System, with environmental The comprehensive energy consumption per 10,000 units of TV products was 4.322 tonnes of standard coal equivalent
management system certificates remaining valid for 27 units. (tce), and that of air-conditioning products was 11.19 tce per 10,000 standard sets, exceeding annual energy-saving targets.
Added 1 national-level green factory and 3 Sichuan provincial green factories; the total now includes 5 national-level green
The completion rate and compliance rate of environmental monitoring for each unit reached factories and 7 Sichuan provincial green factories.
hazardous waste disposal was 100%. Changhong Huayi successfully passed SGS "Zero Carbon Factory" certification, marking a milestone in the Company's
green manufacturing efforts.
No major environmental incidents occurred, nor were there any penalties from environmental
regulatory authorities due to environmental incidents. Carbon emission intensity decreased by 3.54% year-on-year; overall energy consumption intensity decreased by 0.16%
year-on-year.
Environmental protection training covered 33,758 participants. A total of 1,040 environmental Green electricity usage and self-generated photovoltaic power reached 125.4937 million kWh, equivalent to reducing
risks were identified, of which 1,027 have been rectified. 68,851.39 tonnes of CO2 emissions.
Innovation achievements were awarded 1 second prize and 1 third prize in the Provincial
Social Information
Science and Technology Progress Awards, and 1 first prize in the China Association of Science No product recalls, major product or service negative events, or significant product quality and safety incidents occurred.
and Technology Industrialization's Science and Technology Awards.
No data security or user information leakage incidents occurred.
selected as "First Batch of Advanced Smart Factories in Sichuan Province".
Conducted occupational health checkups for 9,302 employees in hazardous positions as required by law, with a 100%
Continuously improving the ESG management system for suppliers and was awarded checkup rate; regularly conducted occupational disease hazard factor testing at work sites, with 4,045 points tested and a
the title of "China Supply Chain ESG Management Demonstration Enterprise" We also 100% pass rate.
promoted nearly 30 core suppliers to participate in ESG ratings, driving coordinated green
transformation across the upstream and downstream value chain.
Donated RMB 2.7 million to support the introduction of high-quality breeding livestock in assisted areas, promoting the
Participated in the preparation of the Supplier ESG Evaluation Guidelines and Enterprise quality upgrading of the yak industry; donated RMB 1 million to set up an education fund in key assisted areas for rural
Supply Chain ESG Management Requirements, filling the gap in domestic standards for revitalization to support the development of the teaching workforce.
supply chain ESG management.
The Company recorded 0 work-related fatalities, 0 cases of occupational diseases, and an Purchased RMB 11.601 million worth of agricultural and specialty products, helping agricultural and pastoral enterprises
occupational disease incidence rate of 0. in supported regions expand and upgrade, benefiting 6,633 local residents.
Changhong's long-
standing foundation
building a solid base for development
Sichuan Changhong continues to optimize the corporate
governance system, embedding risk control into every aspect
of business management, creating a clean and positive
business environment, deepening healthy interactions with
the capital markets, practicing compliant tax governance,
and enhancing multi-dimensional governance to strengthen
the Company's operations, injecting continuous momentum
for long-term development.
Optimizing the Corporate Governance System 23
Strengthening Internal Control and Risk Prevention 30
Adherence to Ethical Business Practices 35
Strengthening Investor Relations and Information 39
Disclosure Practices
Practicing Compliant Tax Governance 41
Respond to the United Nations Sustainable
Development Goals
Optimizing the Corporate Governance System Strategy
Sichuan Changhong is committed to deeply integrating sustainable development into governance practices, improving the
governance structure, promoting management’s focus on long-term value creation, achieving synergy between corporate
governance effectiveness and development goals, and providing a solid governance foundation for high-quality development. Risk Financial Impact Impact
Mitigation Measures
Description Impact Duration Level
Closely monitor and track regulatory developments, diligently
study regulatory rules, and regularly improve governance-re-
lated systems.
Corporate
Governance Revenue Medium term
Governance Medium Strengthen training for directors and senior management,
(decline) Long term
Deficiencies and enhance their ability to perform their duties.
The Company operates in strict compliance with the Company Law of the People’s Republic of China, the Securities Law of the Peo- Purchase Directors' and Officers' Liability Insurance to
ple’s Republic of China, the Corporate Governance Code for Listed Companies, the Guidelines for the Articles of Association of Listed strengthen compliance protection for directors.
Companies, and the Listing Rules of the Shanghai Stock Exchange, as well as other relevant laws, regulations, and regulatory require-
ments. In 2025, in accordance with the new Company Law, the Supervisory Board was abolished, with the Audit Committee of the Board
assuming its responsibilities. Currently, the Company has established a governance system centered on the Shareholders’ Meeting,
the Board of Directors, and the Management. Through core management systems such as the Articles of Association, Shareholders’ Improve the information disclosure management system and
Meeting Rules, Board of Directors Rules, and Internal Authorization Manual, the boundaries of authority and responsibility at each level Information Short term strengthen multi-level review of information disclosure.
are clearly defined, creating a mechanism of checks and balances in decision-making, execution, and supervision. Disclosure Rising Costs Medium term Medium
Violations Long term Continuously study regulatory rules and enhance the capacity
building of the information disclosure team.
Governance Structure of Sichuan Changhong
Conduct research and provide recommendations on
Strategy
General Meet- the Company’s long-term strategic planning and ma- Strengthen communication with investors to convey the Com-
(The highest authority of the Committee
ing of Share- jor investment proposals. Insufficient pany's actual business situation and intrinsic value.
Company)
holders Protection of Medium term
Rising Costs Medium The Company has developed the “Quality Improvement, Effi-
Shareholders’ Long term ciency Enhancement, and Return Focus” plan, developed the
Review financial information disclosures, supervise and Rights “Market Value Management System”, and executed long-term
Audit
evaluate internal and external audits, internal controls, shareholder return plans.
Committee
and exercise the powers of the Supervisory Board.
(The highest governance
Study the selection criteria and procedures for di-
body of the Company,ac- Nomination
rectors and senior management, and carry out the
countable to the share- Board of Committee Opportunity Financial Impact Impact
nomination and qualification review of candidates. Mitigation Measures
holders’ meeting and Directors Description Impact Duration Level
responsible for imple-
menting its resolutions)
Formulate performance evaluation standards for di- Strengthen compliance management across all areas, units,
Remuneration
rectors and senior management and conduct assess- and key fields of the Company, continuously building a culture
and Appraisal
ments; make recommendations to the Board of Direc- of compliance.
Committee Enhanced Medium
tors on remuneration matters.
Compliance and Cost term Enhance compliance management in overseas business are-
Medium
Risk Control Reduction as, proactively plan for compliance transformation, and seize
Capabilities Long term market opportunities.
(Responsible for day-to-day
operations and execution of Management ESG Manage- Research and propose the Company’s ESG strategic
Continuously carry out compliance certification to enhance
specific matters) ment Commit- goals, guide and supervise ESG work, and review the
the Company's competitive edge in compliance.
tee annual report and major matters.
Risk, Impact, and Opportunity Management In 2025, the Company was awarded the “2025
Best Practice Case for Boards of Directors of
Listed Companies” and the “2025 Best Prac-
tice Case for Board Offices of Listed Com-
General Meeting of Shareholders
panies” by the China Association for Public
Companies, and the Company Secretary to
The Shareholders’ Meeting is the highest authority of the Company, and the Company operates in the Board received a “2025 Board Secretary
During the reporting period
strict accordance with the relevant laws, regulations, and requirements of the Articles of Associa- Performance Evaluation 5A Rating” from the
tion and the Shareholders’ Meeting Rules. Proposals, procedures, and voting at the General Meet- China Listed Companies Association.
ing of Shareholders are conducted strictly in accordance with relevant regulations. When reviewing The Company held
proposals related to connected transactions, interested shareholders abstain from voting to en-
sure fairness and reasonableness of the connected transactions. After the meeting, resolutions of Shareholders’
the General Meeting of Shareholders are disclosed in a timely manner. Meetings
During the reporting period, the Company held 3 Shareholders' Meetings, all of which passed the
proposed resolutions. The procedures for convening and voting in each Shareholders' Meeting
proposals for
were legal and valid, with lawyers present to witness the meetings. The Company also provided
deliberation
shareholders with secure, cost-effective, and convenient online voting methods, protecting the
legitimate rights of minority investors.
Board of Directors
Board Diversity Statement
The Board of Directors, as the highest governance body, is responsible for convening the Shareholders’ Meeting, reporting on its work,
The Company places great importance on board diversity, striving to create a diverse board composition in terms of age, professional
executing resolutions passed by the Shareholders’ Meeting, and exercising decision-making powers on significant Company matters.
background, international experience, gender, and educational qualifications, providing broader perspectives for decision-making and
The Board of Directors has five specialized committees: the Strategy Committee, the Audit Committee, the Nomination Committee, the
continuously enhancing governance and decision-making quality.
Remuneration and Appraisal Committee, and the ESG Management Committee. It has also established a dedicated meeting mecha-
nism for independent directors, promoting scientific and refined governance decision-making. During the reporting period, the Company had a total of 9 board members, including 6 internal directors and 3 independent directors.
The Company's board members cover diverse professional fields, including management, accounting, business, and technology, each
possessing extensive experience and the knowledge, skills, and qualifications necessary to perform their duties.
Held 23
meetings
Board of Directors Reviewed 82 proposals Held 6
meetings
Audit Committee
During the reporting period
The Company had a total of Including
Held 2 Remuneration and
Appraisal Committee meetings
Held 1
meeting
Strategy Committee Held 1 Nomination Commit-
tee meeting
Board attendance rate was The proposal approval rate was
Held ESG Management
Committee meetings 100 % 100 %
Name Gender Positions Age Education Background Board Effectiveness
Liu Jiang Male Chairman 56 Master’s degree The Company places high importance on the effectiveness and governance efficiency of the Board, conducting regular assessments of
the Board and its special committees annually, considering factors such as meeting attendance, duty performance, opinion expression,
Heng Guoyu Male Director 58 Bachelor’s degree and the provision of professional advice.
Vice chairman
Yang Jin Male 48 Master’s degree
General manager
Hou Zongtai Male Director 58 Bachelor’s degree Directors are elected by the Shareholders' Meeting, and the Chairman of the Board is elected by a majority vote of the Board of
Directors. Board members are selected and reviewed by the Nomination Committee, nominated by the Board, approved by the
Duan Enchuan Male Director 50 Bachelor’s degree Shareholders' Meeting, and filed with the regulatory authority; employee representative directors are elected democratically by the
Employee Representative Congress or other democratic procedures.
He Long Male Director 41 Doctoral degree
Qu Qing Male Independent director 56 Doctoral degree
Wang Xin Male Independent director 43 Doctoral degree
The Articles of Association stipulate that the term of office for directors shall not exceed 3 years. As of the end of the reporting
period, the terms of office of the Board members did not exceed the stipulated duration.
Yan Jinjiang Male Independent director 52 Doctoral degree
Note: Hou Zongtai, Duan Enchuan, and He Long submitted resignation letters to the Company on December 18, 2025, resigning
from their positions as directors. After review and approval at the 41st Board meeting and the Extraordinary General meeting of
The Company implements shareholder resolutions in accordance with the Rules of Procedure for Board Meetings, conducts
pre-evaluations and preliminary studies on major proposals, and continuously enhances the Board’s decision-making efficiency.
employee representative director by the Employee Representative Congress on January 22, 2026.
Board Independence
In 2025, the Chairman of the Board did not concurrently serve as an executive. The responsibilities and authority between the
senior management and the Board are clearly defined, avoiding conflicts of interest.
The Company’s board includes 3 independent directors, accounting for 33.33% of the total board members, with one accounting profes-
sional, meeting the requirements for the number and professional qualifications of independent directors as specified in the Measures
for the Administration of Independent Directors of Listed Companies. The proportion of independent directors on the Audit Committee,
Remuneration and Appraisal Committee, and Nomination Committee is 60%, 66.67%, and 60%, respectively.
In 2025, the Company revised and published the Independent Director Working System and the Independent Director Special Meeting Performance Capability Development
System, which provide detailed regulations on the appointment requirements, independent opinions, and safeguards for the perfor-
mance of duties for independent directors, ensuring the independence of the Board. In 2025, the Company held 5 special meetings for The Company actively organizes training sessions for directors and senior During the reporting period
independent directors under the Board, reviewing major matters such as related-party transactions and audits, making independent executives, provided by regulatory bodies, exchanges, and listed company as-
judgments and decisions that provided valuable references for the Board’s decision-making. The Company’s directors and senior executives
sociations, covering corporate governance, market value management, and
attended a total of
In 2025, independent directors conducted a total of 6 on-site investigations into subsidiaries and industrial entities. This effectively reg- sustainable development. In 2025, the Company’s directors and senior exec-
ularized the summer joint on-site working mechanism for independent directors of the Company and its listed subsidiaries, promoted utives attended a total of 8 training sessions, promoting systematic learning
their in-depth participation in corporate governance, and ensured effective performance of supervisory duties. During the reporting and enhancing their performance capabilities in the work of the Board. training sessions
period, each independent director spent more than 15 days on-site.
Executive Remuneration Strengthening Internal Control and Risk Prevention
The Company has formulated regulations such as the Working Rules for the Remuneration and Appraisal Committee of the Board
Sichuan Changhong adheres to compliance and internal control as the cornerstone of corporate operations, establishing risk
of Directors, Remuneration and Performance Evaluation Scheme for Senior Management, and the Negative List Evaluation Criteria,
management mechanisms, strengthening internal auditing and legal management, and ensuring effective corporate govern-
establishing a clear remuneration mechanism for directors and senior executives, and linking executive remuneration to ESG perfor-
ance and operational compliance, building a solid security barrier for sustainable development.
mance. The Board has established a Remuneration and Appraisal Committee responsible for formulating and reviewing remuneration
policies and plans for directors and senior management.
The Company has formulated and implemented remuneration-related regulations, Compliance and Internal Control
including the Rules of Procedure for the Working Rules for the Remuneration and Ap-
praisal Committee of the Board of Directors, Remuneration and Performance Evalua-
Remuneration tion Scheme for Senior Management, which clarify the remuneration allocation plans
Policies and The Company views “compliance and internal control” as the cornerstone for steady progress, continuously improving system construc-
and performance evaluation mechanisms for members of the executive management.
Procedures tion, strengthening execution, and ensuring legal and compliant operations.
These mechanisms fully leverage the incentive lever mechanism of remuneration dis-
tribution, motivating the enthusiasm and creativity of the executive management.
Compliance and Internal Control Management System
The Company adopts a performance-oriented approach and benchmarks remuneration
against industry standards in the home appliance sector, reasonably determining each Management Structure
executive’s annual income based on their job responsibilities and specific duties. The Com-
pany implements an annual salary system for senior executives, with performance evalu- At the management level, the Company has established a Compliance and Risk Control Committee and appointed a Chief Compliance
Remuneration
ations conducted based on annual performance contracts. Officer, responsible for studying major compliance issues and reviewing compliance work plans. The Company has set up an office for
Structure and
the Compliance and Risk Control Committee, with two full-time compliance management personnel. All of the Company’s first-tier
Appraisal
The Company has developed the Negative List Evaluation Criteria, incorporating ESG-re- subsidiaries have appointed Chief Compliance Officers, responsible for leading the subsidiaries’ compliance management departments
lated tasks such as safety and environmental protection, quality assurance, non-compliant and business units in conducting compliance work. Currently, the Company’s platform departments and first-tier subsidiaries have all
operations, and risk prevention into the negative list for executive performance evalua- appointed Compliance Administrators and Contract Administrators, staffed by individuals with strong compliance risk awareness and a
tions, deducting points as necessary. deep understanding of business operations, driving the compliance management team to deepen and expand its reach.
Meanwhile, the Company has appointed two dedicated legal affairs personnel and engaged a third-party law firm as its standing legal
counsel to provide professional support, including contract review, legal training, and legal consultation. This ensures the full imple-
mentation of the 'organization, responsibilities, and personnel' framework for compliance management.
Related-party Transaction Management Board of Directors at the
decision-making level
The Company has established the Related Party Transaction Management System, clarifying the responsibilities of departments, the Management at the
scope of related party transaction management, internal controls, and external disclosure requirements. Ensures fair pricing of related executive level
party transactions, compliance with approval processes, and timely information disclosure.
Compliance and Risk Control
Committee Chief Compliance Officer
Execution Level
Indicators and Goals Company Level Subsidiary Level
Establishment of the Office of the Com- Appointment of a Chief Compliance
The Company continues to focus on building a modern, compliant, and efficient governance system, strengthening top-level design pliance and Risk Control Committee Officer
and responsibility coordination, ensuring stable operations. In 2025, the Company experienced no major governance deficiencies or
violations of laws and regulations and achieved its pre-set annual goals.
Dedicated compliance man- Legal affairs personnel Compliance officers Contract administrators
agement personnel
Management Systems Compliance Training and Cultural Development
The Company has established the Basic Compliance and Risk Control Management System and various business management sys- The Company places great importance on build-
tems, forming a “1+N” compliance and risk control management system that integrates the basic compliance management system ing a compliance culture. In 2025, the Company
with specific business management systems. The Company integrates compliance management requirements into its regulations, organized “Compliance System Standards and
rules, and business processes, organizing periodic comprehensive reviews of internal controls, risk, and compliance management Compliance Position Duty Performance Train-
systems, continuously improving the system framework, and strengthening enforcement of these systems. ing”, with over 110 participants attending ons-
ite. The Company also held one overseas busi-
ness compliance risk management seminar for
of compliance risk response experiences. The
the Company’s functional departments Optimized Company organized 8 compliance training ses-
sions for the management team.
Compliance System Standards and Compliance Position Duty Performance
Training
revised and improved systems sales management policies for overseas subsidiaries.
Comprehensive Risk Management
Optimizing the “Three Lists” Management Risk Management Process
In 2025, the Company used the “Three Lists” as a tool to promote deep integration of “business and regulations”, requiring each func- The Company has established mechanisms for risk identification, monitoring, and response, requiring each unit to create a Risk Identi-
tional department to embed compliance management into all aspects of business management, ensuring compliance requirements fication List and conduct dynamic assessments of risks, adjusting response measures in real-time based on changes in risk conditions.
are fully integrated into business management.
Content of the “Three-List” System 01 Risk
Identification 02 Risk
Assessment 03 Risk
Response
Prepare the “Compliance Risk Iden- Each unit is responsible for The Company has estab- In the case of major risks, the responsible unit prompt-
tification List”: requiring each unit to identifying compliance risks lished "P/C Risk Evaluation ly reports to the compliance management department.
regularly identify risks. in its respective areas and Criteria" to identify and as- During the response process to major risks, the business
creating a Risk Identifica- sess major risks. function departments collaborate with the responsible
tion List. units to monitor the progress of significant risks.
three-list
Prepare the “Key Process Control List”: Prepare the “Key Position Compliance
strengthening compliance management for Responsibility List”: strengthening com- ESG Risk Management
key processes. pliance management in key areas.
The Company has established an ESG risk management mechanism involving the Board of Directors. The ESG Management Committee
of the Board participates in ESG risk management, conducting analysis and evaluation of ESG risks and opportunities, and providing
overall supervision. Additionally, the Company has integrated ESG risk management into the overall risk management system, identi-
fying, assessing, and responding to ESG-related risks through a systematic process, ensuring sustainable development while keeping
risks under control.
Strengthening Compliance Reviews At the corporate level, the Company has established a coordination mechanism between functional departments and subsidiaries,
following ISO international standards. Based on actual conditions, the Company regularly conducts ESG risk identification and assess-
ment in key areas such as supply chain security compliance, labor management, anti-corruption, environmental protection, climate
To further consolidate and enhance the Company’s compliance management, in 2025, the Company’s platform departments devel-
change, product quality, corporate governance, and occupational health and safety. Targeted control measures are formulated, and a
oped the Special Action Plan for the “Year of Deepening Compliance Management”, promoting the implementation of 41 compliance
unified ESG risk identification and management list is established, achieving normalized and standardized management of ESG risks.
management measures, fulfilling compliance review responsibilities, managing major risks, and preventing and mitigating operational
Specific identification and assessment results are detailed in the relevant "Strategy" section.
risks.
Deepening the “Three Lines of Defense” Control 2025
The Company raised Supervised the completion of And
The Company continues to deepen the “Three Lines of Defense” in risk management, continuously strengthening the implementation
of compliance risk identification, assessment, and prevention efforts. audit rectification remain in
The Company conducted
requirements rectifications progress
The First Line of Defense
Business and functional departments bear the primary responsibility for compliance and risk control
management
audits A total of Of which
Three
Lines of
The Second Line of Defense
The Compliance Management Department leads and is responsible for compliance and risk control
management at its level.
gestions were made 198 were adopted
Defense
The Third Line of Defense
The Company’s Discipline Inspection Office, Audit Department, and other departments supervise and
evaluate the implementation of compliance requirements, investigate violations, and carry out ac- Legal Management
countability according to regulations.
Legal Management System
The Company has established a legal management system centered around the Legal Affairs Management System, with supporting
Major Risk Ledger
specialized systems such as the Contract Management Measures and Overdue Accounts Receivable Legal Recovery System. It has
formed a management structure with “General Counsel - Legal Affairs Department and External Counsel Team - Business Depart-
The Company has established a Major Risk Ledger, collaborating to analyze and respond to major risks across departments and ments”, where the General Counsel oversees legal affairs and participates in major decisions, the legal team handles specific man-
subsidiaries. In 2025, the Company issued 12 monthly briefs on major risk management, covering the credit risk, legal risk, market agement and execution, external lawyers provide professional support, and business departments collaborate to implement legal
risk, and other major risks faced by 10 key entities within the Company and the consumer business scope, providing information and management requirements, forming an efficient and coordinated management framework.
reference for decision-making on major risk responses by the management.
Legal Risk Management Mechanism
Strengthening Audit and Legal Management The Company has established a full-cycle legal risk control mechanism, forming a closed-loop process of “pre-event identification and
assessment - in-process dynamic control - post-event review and improvement”.
Audit Management
Pre-Event During the Process After the Event
The Company conducts independent and objective supervision and evaluation, comprehen- Through contract management, By organizing self-checks, spe- The Company carries out spe-
During the reporting period
sively reviewing the corporate governance, internal controls, processes, compliance, and system reviews, and other meth- cial inspections, and other routine cial “case-based improvement”
cultural systems, in-depth identifying major risk hazards, and safeguarding the Company’s ods, potential legal risks are methods, the Company dynami- actions, conducting in-depth
high-quality development. In 2025, the Company revised and issued the Procurement Price systematically identified and sci- cally monitors legal risks during reviews of litigation/arbitration
Comparison Audit Management Measures and Internal Audit Rectification Management Sys- entifically assessed, proactively business operations, strengthens cases, summarizing lessons
tem, embedding audit models into key risk points in business processes through the smart There was preventing risks and hidden dan- collaboration between business learned, optimizing manage-
no change
risk early-warning system. A “pre-warning - in-process control - post-event closure” full-pro- gers. At the same time, the Com- and legal departments, and ad- ment processes, and continu-
cess management mechanism was established to improve the timeliness of risk identification pany implements digital and re- dresses issues promptly. ously reducing the likelihood of
and response. fined management throughout the future risks.
in the auditing firm
entire lifecycle of contracts, includ-
In 2025, the Company conducted 1,852 special audits, achieving comprehensive audit cover-
ing drafting, signing, performance,
age of its business units and key economic areas. The Company raised 474 audit rectification
and archiving, improving contract
requirements, supervised the completion of 372 rectifications, and 102 remain in progress. A
management efficiency and risk
total of 215 audit management suggestions were made, of which 198 were adopted, effectively
control capabilities.
promoting the improvement of compliance operations and management standards.
Adherence to Ethical Business Practices Anti-corruption Risk Identification and Control
The Company conducts routine annual identification of major corruption-related risks, including those in operations management, invest-
Sichuan Changhong always upholds integrity and honest business practices, internalizing anti-bribery and anti-corruption
ment and M&A, financial management, procurement and sales management, engineering construction, fixed asset investment, risk man-
as core elements of its corporate culture. The Company firmly opposes any form of monopoly and unfair competition, actively
agement, and audit rectification. In 2025, the Company carried out integrity risk screening for positions across functional departments and
maintaining a healthy and orderly market environment.
subsidiaries, established a risk identification list, and formulated specific measures for integrity risk prevention.
Anti-bribery and Anti-corruption Whistleblowing Mechanism and Whistleblower Protection
The Company has set up a whistleblowing hotline and mailbox, ensuring that whistleblowers can submit information safely and conveniently,
The Company strengthens its institutional framework, enhances education for all employees, and deepens its supervision mechanisms,
either anonymously or with their real names. Every lead is investigated promptly, thoroughly, and fairly, while protecting the legal rights of
adhering to a “zero-tolerance” policy toward corruption. It continuously improves reporting, investigation, and accountability mecha-
the individuals involved.
nisms to ensure fairness and integrity in business transactions.
Public whistleblow- The Company has built an integrated “online + offline” reporting network, embedding the supervision
Governance ing Channels
phone number (0816-2412388) and supervision email (chjwjb@changhong.com) into contract docu-
ments and disclosing them on recruitment, bidding, and other pages. A total of 95 whistleblowing boxes
The Company continuously improves its integrity risk prevention management system, and has established systems such as the Imple- were set up in densely populated areas such as office spaces and factory areas across 45 subsidiaries,
mentation Measures for Accountability for Violations in Business Operations and Investment, Several Provisions on Integrity Conduct both in Mianyang and other locations, providing accessible reporting channels to external stakeholders.
for Leading Cadres at All Levels , Measures for the Management of Petitions and Whistleblowing , and Guidelines for the Integrity Risk
Prevention Management System. The leader in charge of the Company is responsible for anti-corruption and anti-bribery matters.
A special responsible office has been established as the coordinating and executing body for anti-corruption issues. Additionally, a Whistleblower The Company has formulated the Measures for the Management of Petitions and Whistleblowing, which
secondary risk control matrix is set up in operational platforms and business groups, creating a dual-layer governance structure of Protection
clearly define the protection measures for whistleblowers and penalties for disclosing whistleblower
“headquarters control + business cluster linkage”. information. This includes strict protection of whistleblower information and reporting content, prohib-
iting the disclosure or transfer of whistleblowing materials and whistleblower information, and ensuring
Strategy the confidentiality of the whistleblower’s identity throughout the investigation process. Violations such
as information leakage or retaliating against whistleblowers are subject to strict disciplinary action to
Risk Financial Impact Impact effectively protect the legal rights of whistleblowers.
Mitigation Measures
Description Impact Duration Level
Property losses Revenue Short term Strengthen the building of integrity risk prevention and control
(decline) Whistleblowing Handling Process
caused by commercial Medium High system, clarify the risk control responsibilities of each unit, and
bribery and corruption Assets enhance integrity awareness and risk control capabilities.
term
(decline) Multiple channels are used to receive whistleblowing leads. These leads are screened to determine whether
Lead
they fall within the scope of the disciplinary inspection. Non-relevant leads are either transferred to relevant
Reception
Opportunity De- Financial Impact Impact departments or communicated back to the whistleblower.
Mitigation Measures
scription Impact Duration Level
Registration
The leads received are assigned a unique number, registered, and filed under centralized management.
and Filing
Enhance corporate im- Medium
Revenue term Increase publicity of corporate integrity culture to showcase a Leads are handled according to the management level. The Company directly handles leads involving key
age to attract premium High
increase positive corporate image. Tiered
clients and partners management personnel, while grassroots-level leads are assigned for handling with results reported for
Long term Handling
record and cases without substantial evidence are closed after review.
Real-name reports are prioritized for handling, with feedback provided and rewards granted in accordance
Categorized
Impact, Risk, and Opportunity Management Handling
with relevant regulations. Anonymous reports are not subject to identity verification unless authorized by
higher management.
Strengthening Supervision and Management
Repeated, unsubstantiated, malicious, or mistaken reports, as well as reports focusing on specific units, are
Result
classified for processing, with false claims being clarified, malicious accusations leading to accountability,
Processing
The Company promotes the implementation of the dual responsibilities of a single position checklist system for leadership members, and mistaken reports addressed through education.
strengthens grassroots discipline inspection guidance, uses “learning through doing” to guide subsidiary discipline inspection work, and
Closure of After completing the investigation and handling, all records are retained and archived, with strict confidenti-
improve the“multi-dimensional integration” coordination mechanism among discipline inspection, auditing, and other departments. A joint
the Case ality management requirements adhered to throughout the process.
meeting, joint investigation, and accountability mechanism has been established to build a multi-dimensional risk prevention system.
Anti-bribery and Anti-corruption Training Antitrust and Fair Competition
The Company has taken multiple measures, including “leadership-led integrity lectures, targeted and tiered measures, and deepening the
effectiveness of warning education”, to carry out anti-corruption education and strengthen the ideological defense system. The Company strictly adheres to the Anti-Monopoly Law of the People’s Republic of China, the Anti-Unfair Competition Law of the Peo-
ple’s Republic of China, and other relevant laws and regulations, establishing a fair competition management system that covers the
entire business chain. The Company’s General Management Department is responsible for coordinating and managing the Company’s
anti-monopoly and fair competition matters. During the reporting period, the Company did not engage in any unfair competition, and
there were no major internal control deficiencies or significant non-compliance issues.
The Chairman held integrity talks with over 140 newly promoted and young cadres.
During the reporting period
The Discipline Inspection Secretary conducted “three briefings” talks with 3 newly appointed principal leaders and group talks
with 35 newly promoted cadres.
Organized 7 integrity training sessions for new employees, covering over 1,500 participants.
No unfair competition acts occurred No material weaknesses in internal control
Conducted targeted integrity education for 18 young cadres, over 150 key cadres, and 53 newly promoted cadres.
No significant non-compliance issues
In 2025, the Company held one training session on the “Anti-Monopoly and Anti-Unfair Competition Laws”, with over 80 employees
Supplier Anti-corruption Management
covering heads of various business areas across the Company, further strengthening employees’ awareness and ability to prevent legal
risks. At the same time, the Company’s subsidiaries, in accordance with their industry characteristics, have formulated anti-monopoly
The Company takes two actions in addressing violations by suppliers and business partners: first, placing them on a blacklist and ending and fair competition measures to prevent monopolistic behavior.
cooperation; second, for those suspected of bribery or harming the Company’s interests, it seeks economic compensation in accordance with
contractual provisions and, where criminal conduct is involved, pursues legal liability.
Metrics and targets The department organized all members to study the Anti-Monopoly Law and other industry-specific anti-monopoly regula-
tions, and pricing is done strictly according to the Company’s pricing system after being calculated by the Pricing Center. For
external sales contracts and cooperation agreements, a Sales Contract Review Form or Legal Document Approval Form must
The Company maintains a strong anti-corruption stance, adhering to a zero-tolerance, full-coverage, and no-exemption policy. We focus on
be initiated. The documents shall be reviewed by the Asset and Finance Department and the Legal Department before sealing,
key areas and critical processes involving concentrated authority, capital, and abundant resources, and conducts in-depth investigations into
to ensure that no anti-competitive clauses are included.
emerging and concealed forms of corruption. In 2025, the Company achieved its annual goal for the “Anti-corruption” initiative.
Changhong Hongxin
Targets for
Indicators Progress in Reporting Period
ments, including whether competitors have entered into price-fixing or market allocation agreements, as well as whether
Percentage of directors who received anti-bribery and anti-corruption training Completed
there are behaviors involving the abuse of dominant positions to force partners to accept unreasonable conditions, with a focus
on preventing antitrust risks such as monopolistic agreements and abuse of market dominance.
Percentage of management who received anti-bribery and anti-corruption training 100% Completed
Coverage rate of warning education 100% Completed
Training coverage rate for middle management, new employees, and key
Completed
position employees
Whistleblowing handling rate 100% Completed
Strengthening Investor Relations and Information Disclosure Practices
On July 2, 2025, the Company, in collabo-
Sichuan Changhong responds promptly to investor concerns, communicates the Company’s strategy and ESG practices, ration with Changjiang Securities, hosted
optimizes the shareholder rights protection mechanism, and is committed to building a long-term, stable, and trust-based the “I Am a Shareholder – Investors Visit
investor relations ecosystem. Sichuan Changhong” event. Over 20 in-
vestors visited the Changhong Technology
Museum and the Smart Manufacturing
Industrial Park, engaging in in-depth dis-
cussions with the Company’s senior man-
agement. The event facilitated smooth
Investor Relations Management communication channels with investors
and effectively conveyed the Company’s
value.
In 2025, in accordance with the latest regulatory rules, the Company revised the Sichuan Changhong Investor Relations Management
Measures, clarifying that the Chairman is the primary person responsible for investor relations management, the Board Secretary
is the main responsible person, and the Board Office serves as the functional department for investor relations management. The
Company has appointed an IR Officer responsible for daily management of investor relations (IR), organizing IR activities, and using a
combination of online and offline interactive methods to manage investor relations, responding promptly to investor requests.
Information Disclosure Management
mary person responsible for the Company’s information disclosure. The Board Secretary coordinates and oversees the process,
while the Board Office organizes and implements daily disclosure work, with a dedicated team handling execution. This structure
ensures a clear and efficient information disclosure management system.
Answered investor Responded to in- Held performance briefing
The Company strictly complies with relevant securities market laws and regulations. During the reporting period, the Company
hotline calls quiries on the Shanghai Stock sessions throughout the year
revised its Information Disclosure Management System, Information Disclosure Deferral and Exemption Management System,
Exchange E-interaction platform,
Major Information Internal Reporting System, Insider Information Registrant Management System, and External Information
achieving a 100% response rate
User Management System. Through the preparation and release of quarterly, semi-annual, annual, and ESG reports, the Com-
pany ensures systematic, timely, accurate, and complete disclosure of business information, in compliance with all disclosure
requirements for listed companies.
Held institutional investor Participated in investor A total of investors have been
research meetings roadshow events in total engaged in in-depth communication.
On June 10, 2025, the Company held the 2024 Shanghai Stock Ex-
change Main Board Smart Home Annual Performance Briefing and
A-level information disclosure rating from the Shanghai
Stock Exchange
China Securities Journal “Golden Bull Award (2024 Best
the 2025 Q1 Performance Briefing, combining live communication,
Information Disclosure Award)”
video streaming, and online text interaction. The senior management
temporary announcements
engaged deeply with investors, and the event was recognized by the
China Listed Companies Association as the “2024 Best Practice Case
for Annual Report Performance Briefing”.
other reports and documents
the event was recognized by the China Listed Companies
Association as the “2024 Best Practice Case for Annual
Report Performance Briefing”.
Shareholder Rights Protection Strategy
In 2025, the Company’s Board of Directors approved the Market Value Management System, implemented long-term shareholder
Risk Financial Impact Impact
return plans, and continued cash dividends and share repurchases to improve market value management efficiency and maintain the Mitigation Measures
Description Impact Duration Level
stability of the Company’s market value and market confidence.
Establish a cross-border tax management system,
The implementation of
standardize transfer pricing management, prepare
From 2017 to 2025, the Company implemented cash dividends for 9 consecutive calendar years, with a total dividend OECD global minimum tax
Dividends contemporaneous documentation, and reduce tax ad-
distribution of approximately RMB 1.173 billion. and issues regarding inter-
Medium justment risks.
national tax transfer pricing Increased
term
fairness have led to risks costs and High Fully leverage tax treaties, apply for tax credits or ad-
Long-
On May 8, 2025, and June 26, 2025, the Board and Shareholders' Meetings approved a share repurchase program of double taxation, trans- expenses vance pricing arrangements, and avoid double taxation.
Repurchase term
with a total repurchase amount between RMB 250 million (inclusive) and RMB 500 million (inclusive). fer pricing adjustments,
Cooperate with overseas professional tax agencies,
and overseas tax audits for
familiarize with local tax regulations, and actively re-
cross-border operations.
spond to overseas tax audits.
In September 2025, the Company launched a shareholder ap-
Shareholder Establish a dynamic tax policy tracking mechanism to
Appreciation preciation event, offering exclusive and high-quality products
assess the impact of policy changes on the Company’s
and services to all shareholders, receiving widespread recogni- The tightening of VAT incen-
tax burden in a timely manner.
tion from shareholders. tive policies for advanced
manufacturing, and the Short Optimize business structures and transaction models,
cancellation of VAT exemp- term and reasonably utilize other tax incentive policies to
Cost increased High
tions on government bond Medium offset the negative impact of policy adjustments.
interest income have led to term Actively participate in policy discussions organized by
increased tax burden and
industry associations and regulatory authorities, re-
higher costs.
flecting the Company's reasonable demands, and pro-
moting policy optimization.
Opportunity Financial Impact Impact
Mitigation Measures
Description Impact Duration Level
Relevant incentive policies
Increase investment in smart transformation, energy
in the fields of smart trans-
conservation, and artificial intelligence industry chains,
formation, energy conser-
Short and actively apply for relevant tax incentive policies.
vation, and artificial intelli-
gence industries, along with term Standardize the procurement and usage management
Practicing Compliant Tax Governance tax credits for specialized
Cost Reduction Medium
of specialized equipment to ensure compliance with tax
Medium
equipment and a decrease term credit eligibility conditions.
in VAT rates, have effectively
Optimize business models and reasonably utilize the
reduced the Company’s tax
VAT rate reduction policy to reduce turnover tax costs.
burden.
Governance
The unified national tax col-
lection and management Leveraging the unified tax management environment, we
system puts the Company enhance tax compliance levels and management efficien-
The Company strictly adheres to the Law of the People’s Republic of China on the Administration of Tax Collection, the Enterprise In- Revenue
in a fair competitive environ- cy.
come Tax Law of the People’s Republic of China, and the Interim Regulation of the People’s Republic of China on Value-added Tax, and increased Long term Medium
ment, which helps stand- By utilizing the fair competitive environment, we optimize
follows the principle of “top management responsibility”. The Company’s top executive is designated as the head of tax management,
ardize tax management and Cost Reduction
with dedicated tax personnel in each subsidiary, implementing a “unified leadership, hierarchical management, regional coordination, business layout and resource allocation, enhancing the
enhance overall competi- Company's overall competitiveness.
and full participation” tax management system.
tiveness.
The Company systematically discloses complete tax information in its annual financial reports, covering applicable tax rates, executed
tax incentive policies, and the legal basis for those policies. In its regularly released financial reports, the Company also clearly presents
data such as taxes payable, continuously enhancing the transparency of its tax information.
Risk, Impact, and Opportunity Management
Tax Risk Management Mechanism
The Company follows the principles of “pre-planning, in-process control, and post-improvement” for tax management in all business areas,
creating a management loop of “identification - assessment - response - improvement”, continuously enhancing its tax risk prevention and
control capabilities.
Establish a tax risk identification system covering all business areas, tax categories, and processes, using
tinuously improving the tax risk feature database.
Regularly assess the effectiveness of risk management, dynamically improving the risk list, evaluation
Assessment
standards, and control processes by incorporating policy updates, business changes, and case experience.
Establishing a normalized risk prevention mechanism with coordinated business, finance, legal, and tax
tax declaration and payment processes.
Guide each unit in conducting systematic risk inspections to ensure early detection and early warning of
Improvement
risks, implement classified and tiered assessments of risks, and apply differentiated risk control measures.
Tax Communication and Training
In 2025
The Company organized 38 internal and exter-
nal tax and finance professional training sessions for
totaling approximately 230
learning hours online and offline.
participants and 3,444
finance department employees
Indicators and Goals
The Company will continuously strengthen awareness of lawful tax payment, standardize tax behavior, control tax risks, optimize man-
agement efficiency, and ensure effective tax risk management, lawful policy application, and compliance, gradually achieving the core
goal of “supporting strategy, aiding decision-making, serving business, creating value, and preventing risks”.
Green Changhong
advancing low-carbon development 02
Sichuan Changhong closely aligns with the national "dual
carbon" strategy, focusing on carbon reduction targets to
manage climate risks and comprehensively strengthening
the foundation for green development. Through practical
actions, we demonstrate the environmental responsibility
of a leading manufacturing enterprise and enable high-
quality, sustainable development.
Actively address climate change 47
Strict environmental compliance 56
Advancing robust green operations 60
Enhancing resource utilization efficiency 61
Developing a green circular economy 73
Strengthening biodiversity protection 74
Respond to the United Nations Sustainable
Development Goals
Achieve carbon peak
Actively Address Climate Change
Sichuan Changhong actively responds to the national "dual carbon" goals by strengthening climate-related risk identification
and management. We work with stakeholders to build a climate-resilient society and contribute to sustainable development
and ecological progress. Expand self-developed
Achieve carbon
Carbon Emissions
Gradually reduce fos- photovoltaic projects
neutrality within
sil energy consump- and gradually achieve
the enterprise
tion and increase the full rooftop photovoltaic Explore the utilization of
Continuously carry out
proportion of green coverage across indus- other renewable energy
low-carbon technological
electricity usage trial parks by 2030 sources and increase in-
Governance upgrades and equipment
vestment in low-carbon
upgrading; promote the
technologies such as
development of low-car- Explore the application of
In 2025, the Changhong Holding Group1 established a Carbon Neutrality Strategy Committee led by the Board of Directors, with a Car- energy storage
bon industrial parks and carbon trading and car-
bon Neutrality Promotion Office set up to manage targets and define key tasks. Based on its development needs, Sichuan Changhong green factories bon offset mechanisms
strengthens resource coordination and enhances the effectiveness of carbon neutrality practices. In alignment with the objectives,
pathways, and plans of the Carbon Neutrality Strategy Committee and the Promotion Office, we systematically advance energy efficien- 2030 2049
cy improvements and low-carbon transformation.
Pathway to Achieve the “Dual Carbon” Goals
Carbon Neutrality Strategy Committee Carbon Neutrality Promotion Office ESG-related Management Entities
Formulate carbon neutrality strategic targets Ensure effective implemen- Identify and assess climate Climate Risk and Opportunity Management Process
and development pathways tation of all decisions and risks and opportunities, de-
plans of the Carbon Neutral- velop corresponding meas-
Approve annual carbon neutrality budgets and
ity Strategy Committee, tak- ures, and be responsible The Group has established a comprehensive process for identifying, assessing, and responding to climate-related risks and opportuni-
major investments
ing overall responsibility for for implementation tasks ties. First, based on the IFRS S2 standard, climate risks are categorized into physical risks and transition risks, while climate-related
Establish and oversee the Group’s carbon neu- coordination and execution such as carbon accounting, opportunities are analyzed in conjunction with the specific characteristics and operations of each business entity. Second, climate
trality management system carbon footprinting, carbon scenario analyses are conducted using scenarios released by the IPCC, and the financial impacts and time horizons of climate risks
trading, and carbon certifi- and opportunities under different scenarios are assessed in combination with each business entity’s actual situation. Relevant business
Approve external carbon neutrality statements
cation entities then formulate measures to manage risks, and the list of risks and opportunities is monitored and updated regularly, ensuring
a systematic approach to managing climate-related risks and opportunities.
Strategy
Physical Risk Scenario Analysis
The Company actively implements its climate change response strategy. By referencing the guidelines of the Shanghai Stock Exchange
and the scenario analysis models of the IPCC, the Company assesses the impact of climate-related risks and opportunities on its
operations, financial performance, and sustainable development, and continuously optimizes its climate risk management system. Based on the Representative Concentration Pathways (RCPs) and Shared Socioeconomic Pathways (SSPs) published by the Inter-
governmental Panel on Climate Change (IPCC), the Company selected three representative scenarios for analysis: SSP1 + RCP2.6
(low-emission scenario), SSP2 + RCP4.5 (medium transition scenario), and SSP5 + RCP8.5 (high-emission scenario).
Guided by the comprehen- The Company has car- we also advance intelli-
The Company has set dual
sive green transformation of ried out the development gent upgrading and digital
carbon goals
economic and social develop- of low-carbon industrial transformation, explores
ment, the Company focuses parks, with the goal of pathways for the green
on coordinated reduction of achieving rooftop photo- and low-carbon transition Low-emission scenario: SSP1 + RCP2.6
pollution and carbon emis- voltaic coverage across of its parks, and consoli- Achieve carbon peak by 2030
sions to achieve synergistic its parks before 2030. dates the green develop- The SSP1 + RCP2.6 scenario represents a global transition toward sustainable development. Under this scenario, global cli-
efficiency gains, with priority ment path of its intelligent Carbon neutrality before 2049
mate governance is strengthened and energy transition is actively advanced. Transition risks are relatively high, while physical
given to the green, low-carbon manufacturing. risks are comparatively low. This scenario is intended to achieve the long-term goals of the Paris Agreement, namely to hold
and efficient use of energy. the increase in global average temperature to well below 2°C and pursue efforts to limit it to 1.5°C.
Company.
Transition Risk and Opportunity Scenario Analysis
Moderate transition scenario: SSP2 + RCP4.5
The SSP2 + RCP4.5 scenario represents a "middle-of-the-road pathway", where global socioeconomic development and cli-
The Company selected three SSP scenarios published by the IPCC—SSP1, SSP2, and SSP5—to conduct scenario analysis of climate
mate policies follow current trends, with steady but limited progress in low-carbon transition. Under this scenario, companies
transition risks and opportunities. At the same time, in light of its own business development, external policy changes, and industry
face certain transition pressures while maintaining a relatively balanced profile of risks and opportunities.
trends, the Company identified and assessed transition risks and their potential financial impacts and adopted corresponding response
measures.
High-emission scenario: SSP5 + RCP8.5
Climate-related transition risks
The SSP5 + RCP8.5 scenario represents a high-growth pathway driven by fossil fuels. Under this scenario, companies face lower transition
pressure in the short term, but significantly higher long-term physical risks (such as extreme heat and flooding) and policy transition risks Im-
Im-
(such as tightening carbon policies and increased carbon tariffs), which may materially affect supply chain stability and operating costs. Financial pact
Risk Category Risk Description and Impact pact Mitigation Measures
Impact Dura-
Level
tion
Under these three scenarios, the Company comprehensively identified potential physical risks affecting its production and operation locations • Closely monitor domestic and
over the short, medium, and long term, as well as the associated potential financial impacts. Details are presented in the table below:
Expend- Me- international carbon regulations and
iture dium regularly calculate carbon emissions
Climate-related physical risks Tightening Products exported overseas will soon
increased term Medi-
carbon tariffs Policy and face policy requirements and restric- data
•
Impact um to
Financial Impact and regulatory legal risks tions related to carbon tariffs and carbon Advance carbon footprint certification,
Risk Category Risk Description and Impact Dura- Mitigation Measures high
Impact Level requirements footprint. optimize low-carbon supply chains,
tion Revenue Long
• comprehensively strengthens the (decline) term and develop low-carbon product
construction of its emergency portfolios
The Company’s main production management system, establishes Cost of low-car-
• Conduct collaborative R&D,
sites are located in Mianyang, Hefei, Increased professional emergency response bon technology monitor government policies, strive
Jingdezhen, Zhongshan, and other re- costs, Low-carbon technology development Expend-
teams, and ensures sufficient research and Technology Long Medi- for relevant funding support and
Sudden flood gions, which are prone to river flooding reduced Short and transition require substantial invest- iture
Acute risks Low allocation of emergency supplies. development risks term um tax incentives, reduce transition
ment and long implementation cycles. increased
• carries out flood preparedness in
events and waterlogging during the rainy sea- revenue term and transfor- costs, and promote technological
son. Such events may lead to inunda- and asset mation
advance, including sewer dredging substitution in phases.
tion of factories and hazardous chemi- values
cals, resulting in property damage. and risk inspections, to enhance its
Climate-related Opportunities
emergency response and disaster
Im-
prevention and mitigation capabilities Finan- Im-
Opportu- Opportunity Description, pact
The Company operates in areas with Category cial pact Mitigation Measures
nity Impact Dura-
Impact Level
• Ensure seismic-resistant structural
relatively frequent seismic activity. Earth- Increased
tion
• Persist in building an intelligent
quakes may result in ruptures or leaks costs,
Me-
Sudden earth- in energy pipelines and storage tanks, reduced design during factory construction.
• Develop earthquake evacuation route
Acute risks dium Medium The Company has strengthened Me-
quake events breakage of power cables, and second- revenue More cli- low - carbon logistics park, and
term its resilience and climate-adaptive dium
ary accidents such as fires, which could and asset maps and conduct emergency drills. mate-resil- Products and Revenue Medi- work together with upstream and
supply chain capabilities under ex- term
lead to production stoppages, personnel values ient supply services increased um downstream supply chain partners
treme weather or disaster condi- Long
casualties and property losses. chain
• Secure
tions. to achieve carbon reduction and
generator resources in term
decarbonization goals.
• Actively explore and apply new
advance, build the necessary technical
capacity, and closely monitor weather
With the spread of green and technologies and processes to improve
Prolonged Prolonged heat and drought conditions Expend- forecasts to stay informed of extreme low-carbon concepts and evolving Me-
Chronic Long resource efficiency and reduce energy
heatwaves led to power rationing, power outages, iture Low weather events. Shifting con- demand for green transition and dium
• Install essential water storage facilities
risk term Revenue Medi- costs.
• Adapt to market demand, seize the
and droughts and water supply disruptions. increased sumer pref- Market development, customers and the term
increased um
to stockpile water in advance and erences public continue to show increasing Long
demand for green and low-carbon consumption upgrade opportunity
ensure production continuity during term
products and services. of the home appliance industry, and
droughts.
formulate marketing strategies.
Impact, risk, and opportunity management Air conditioning
products
We prioritize energy-saving technologies and eco-design. In new product development, we adopt "new technologies, new processes,
new equipment, and new materials", and implement the Management Measures for Restricted Use of Hazardous Substances in ac-
Green transition and development
cordance with relevant standards to eliminate hazardous substances at the source. For comparable materials, we prioritize green and
high-efficiency components, such as high-efficiency rare-earth compressors. In new technologies, we replace R410A with the more
environmentally friendly refrigerant R32, reducing global warming potential (GWP) by two-thirds. We continue to advance research on
Green product design natural refrigerants, with technologies reaching internationally advanced levels, enabling low GWP performance and supporting the
"dual carbon" targets.
We integrate environmental considerations into product design, promote the adoption of appropriate low-carbon technologies across
subsidiaries, improve energy efficiency in production processes, and reduce carbon emissions.
Television
products
In smart TV optical design, we adopt high-gain op-
tical films, achieving over 18% improvement in en-
ergy efficiency compared with traditional solutions.
In addition, LED modules fully adopt flip-chip tech-
nology, reducing power density per unit area through
optimized chip structures and improving electro-op-
tical conversion efficiency by more than 12%. The
integration of these technologies delivers over 30%
improvement in overall energy efficiency, significantly
reduces power consumption, enables products to ex-
Washing machine
ceed Level 1 energy efficiency standards.
products
Guided by green design principles, we leverage AI to analyze fabric weight and type, automatically optimize washing modes, and
effectively reduce water and energy consumption. During drying, we accurately detect fabric moisture and intelligently adjust time
and temperature to avoid energy waste. We also adopt high-efficiency and durable inverter and direct-drive motors to improve control
precision and spin speed, shorten operating time, and further reduce electricity consumption, comprehensively advancing green and
Refrigerator
energy-efficient performance.
products
We advance energy-saving technologies across platform products and have
launched multi-door models exceeding China’s Grade 1 energy efficiency
standard by 30%. We completed pre-research, development, and validation of
multi-door and side-by-side refrigerator products meeting European Class A
and A-20% energy efficiency standards, and showcased them at the 2025 IFA
in Germany. We optimize heat and mass transfer in frost-free refrigerators and
improve drainage pipe sealing structures to reduce overall energy consump-
tion.
Green energy use Changhong Jiahua
Our primary energy sources include purchased electricity, gasoline, diesel, natural gas, and purchased heat, with purchased electricity Through LED lighting upgrades in warehouses, annual electricity savings reach 18 kWh per square meter, reducing CO2 emissions
being the dominant source. We continue to increase the share of green electricity in purchased power, expand in-house photovoltaic by 10.5 kg. With a total warehouse area of 30,802 square meters, this results in annual savings of 550,000 kWh and a reduction of
generation and utilization, and build a green energy framework. 320 tonnes of CO2. In logistics operations, 23 urban delivery vehicles across warehouses in Beijing, Shanghai, Chengdu, Xi’an, and
Wuhan have been upgraded to new energy vehicles.
In 2025, green electricity, including photovoltaic power, accounted for 121.1178 million kWh of purchased electricity, while our self-gen-
erated photovoltaic power reached 4.3759 million kWh.
Green Construction
Changhong Air Conditioning
The Hongyuan heat pump project implemented rooftop photovoltaic generation across the industrial park, which was officially We promote energy efficiency retrofits of existing buildings in line with the national "Green Building Evaluation Standard" and the "Si-
connected to the grid on November 24, 2025. In December, total photovoltaic generation reached approximately 204,800 kWh, chuan Passive Ultra-Low Energy Building Technical Standard", advancing energy-efficient construction and lighting solutions across
with 165,700 kWh consumed on-site, representing an actual utilization rate of 80%, and accounting for 40% of total electricity our factories and warehouses.
consumption.
Changhong Precision
Green transformation
Changhong Precision the electronic manufacturing facility currently operates 4,530 units of 16W LED lights for 24-hour illu-
mination, with hourly electricity consumption of 72.48 kWh. After evaluating key parameters such as power, illuminance, and
We advance low-carbon technological innovation by upgrading equipment and optimizing processes across production units, signifi-
color temperature, we introduced new 8W energy-saving LED lights that maintain the same illuminance (1600 lm) and color
cantly reducing energy consumption in manufacturing operations.
temperature (6500 K) with lower power consumption. Following the upgrade, annual electricity savings reached 269,915 kWh,
reducing carbon emissions by 42.21tonnes.
Changhong Moulding
We replaced hydraulic storage motors with electric storage motors, reducing energy conversion steps and improving energy Changhong Huayi
efficiency. During the year, 54 injection molding machines were retrofitted with electric storage systems, delivering total elec-
tricity savings of 2.8498 million kWh.
By integrating smart gateways with a cloud platform, we enable single-light and multi-light network sensing, remote control,
data collection, and statistical analysis. Leveraging digital systems, we apply big data and AI to analyze operational data, en-
hancing energy-saving potential in workshop lighting and improving intelligent management while ensuring normal produc-
Changhong Electronic Components tion and reducing maintenance costs. Estimated annual electricity savings are 150,000kWh, with carbon emissions reduced
by 88.31 tonnes.
By upgrading winding processes with fully automated winding machines and phasing out outdated equipment,we expect to
reduce energy consumption and cut carbon emissions by 14.28 tonnes.
Green Office Operations
In technology upgrades, we prioritize high-efficiency, energy-saving production equipment and adopt environmentally friendly
solutions, such as using energy-efficient air compressors as power sources, significantly reducing baseline energy consump-
tion in production. We actively promote green office practices, including paperless workflows, energy-efficient equipment, optimized air conditioning
settings, and double-sided printing, fostering a comprehensive green workplace culture. Looking ahead, we will establish employee
"green credit" carbon accounts, covering daily scenarios such as commuting and office consumables, and link these credits to perfor-
mance to incentivize low-carbon behavior.
Green logistics
We continue to promote energy-efficient warehouse upgrades and the electrification of logistics vehicles. By introducing a TMS (Trans-
portation Management System), we optimize transport routes to reduce fuel consumption and carbon emissions.
Green (Zero-Carbon) Factory Development Greenhouse Gas Emissions Data for the Past Three Years
The Company has continuously carried out green factory certification for many consecutive years and achieved outstanding results.In 2025, Indicators Unit 2023 2024 2025
The company has continuously carried out green factory certification for many consecutive years and achieved outstanding results. In 2025, we
Scope 1 Greenhouse Gas
added one national-level green factory, Changhong NeoNet Technologies, and three Sichuan provincial-level green factories (Sichuan Chang- tCO2e 33,649.31 43,190.73 46,424.36
Emissions
hong, Changhong Air Conditioning, and Changhong Electronic Components), demonstrating our leading capabilities in green manufacturing
Scope 2 Greenhouse Gas
systems, low-carbon technology application, and sustainable development. In addition, Changhong Huayi received the “Zero-Carbon Factory” tCO2e 201,351.39 216,907.31 217,828.59
Emissions
certification from SGS, becoming the first company in China’s compressor industry to obtain this certification.
Total Greenhouse Gas
tCO2e 235,000.70 260,098.03 264,252.95
Emissions
Product carbon footprint accounting
Greenhouse Gas Emis- Kg CO2e / RMB 10,000
sions Intensity output value
The Group continues to carry out carbon footprint and greenhouse gas accounting. In 2025, the Group and its subsidiaries including Chang-
hong China Smart Dispaly, Sichuan Changhong Network Technology, Changhong Air Conditioner and Changhong Electronic Components
have completed greenhouse gas accounting and product carbon footprint assessment reports. Going forward, the Group will promote product Strict environmental compliance
carbon footprint certification and gradually strengthen product-level carbon management.
Sichuan Changhong strictly complies with national and local environmental laws and regulations, continuously strengthens internal
Green Power Transactions environmental policies and standards, and upholds an ecological priority approach to support regional environmental quality and sus-
tainable operations. We have joined the Mianyang Ecological Civilization and Green Development Promotion Association as a member.
The Group has conducted green power transactions for several consecutive years. In 2025, the Company and its subsidiaries—including
Changhong Meiling, Changhong Huayi, Guangdong Changhong, and Changhong Precision—completed a total of 121.1178 million kWh of
green power transactions.
Environmental Management
The Company has established an Environmental Protection Committee to oversee major environmental matters, with its office under the
Safety and Environmental Protection Department serving as the executive body responsible for implementing environmental initiatives and
daily operations. During the reporting period, we continuously improved our ISO 14001 environmental management system, conducting
annual surveillance or recertification audits. Currently, 27 entities maintain valid environmental management system certifications.
Responsibilities of the Environmental Protection Committee
Implement national, local, and supervisory authorities’ policies, requirements, and regulations on environmental protection;
establish and improve the environmental protection responsibility system, regulatory framework, and operational mechanisms.
Organize the formulation of environmental protection targets, medium- and long-term plans, and annual plans, and su-
Indicators and Goals pervise their implementation.
Establish and improve the environmental protection responsibility system and its assessment mechanism, and conduct
We have established phased management targets for addressing climate change and actively advanced their implementation during
inspection, supervision, and evaluation of environmental protection work across all units.
the reporting period.
Make decisions on and supervise the implementation of major matters such as major environmental governance projects,
rectification of major environmental risks and hazards, and budgets for significant environmental protection expenditures.
Progress in Reporting Progress Toward Target
Indicators Objectives
Period Achievement
Taking 2021 as the base year, the Progress During the
Indicators Targets for 2025
Company aims to reduce the green- Reporting Period
Greenhouse gas emission Decreased by 29.69% com-
house gas emission intensity (green- Achieved ahead of schedule Environmental
intensity pared to the base year No major environmental incidents occurred. Completed
house gas emissions per RMB 10,000 incidents
output value) by 10% by 2030 All pollutants generated by pollutant-discharging entities were discharged in com-
Completed
Taking 2021 as the base year, the pliance with standards, and no environmental violations occurred.
Company aims to reduce the energy Environmental 100% compliance rate for the disposal of hazardous waste. Completed
Energy consumption in- Decreased by 23.59% com-
consumption intensity (energy con- Achieved ahead of schedule compliance No penalties imposed by environmental regulatory authorities due to environmental incidents. Completed
tensity pared with the baseline year
sumption per RMB 10,000 output val- The environmental impact assessment rate and the “three simultaneous” implementa-
ue) by 10% by 2030 Completed
tion rate for new, expanded, and renovated construction projects both reached 100%.
Environmental risk management process 2025
Each department analyzes macro-level and internal environmental factors, combined with stakehold-
er requirements, to identify respective risks and opportunities and complete the departmental Envi-
A total of 1,040 environmen- Of which 1,027 13 remain under ongoing
ronmental Risks and Opportunities Identification and Evaluation Form.
Risk Identification tal risks were identified have been rectified remediation
The Safety and Environmental Protection Department consolidates and analyzes such forms to es-
tablish the company-level Environmental Risks and Opportunities Identification and Evaluation Form.
We establish evaluation criteria for environmental risks and opportunities, with each department pre- Environmental emergency drills
paring a "Register of Significant Environmental Risks and Opportunities".
Risk Assessment
The Safety and Environmental Protection Department conducted summary analysis and compiled the
We comply with the "National Emergency Response Plan for Environmental Incidents" and adopt a proactive and science-based ap-
Company-level List of Major Environmental Risks and Opportunities.
proach to build a comprehensive environmental emergency management system, covering contingency planning, resource prepared-
ness, personnel training, and drills.
Each department adopts appropriate response or mitigation measures—such as eliminating, avoid-
Risk Management and
ing, reducing, or accepting risks—for the material environmental risks and opportunities identified in
Control
the assessment.
Each department must conduct at least one annual review of major environmental risks and oppor-
tunities to verify effectiveness.
Risk assessment
and monitoring
We conduct regular monitoring of environmental factors to promptly re-identify and reassess relevant
risks and opportunities.
Environmental Risk Monitoring
Changhong Air Conditioner organized an emergency drill for hazardous chemicals incidents.
We strictly follow the "Technical Guidelines for Self-Monitoring of Pollutant Discharging
During the reporting period
Units – General Principles" and relevant sector-specific guidelines, and develop and imple-
ment annual environmental monitoring plans in line with discharge permit requirements. environmental monitoring coverage
During the reporting period, environmental monitoring coverage reached 100%. All units
reached
completed monitoring tasks as planned, and year-end verification confirmed that all indi-
%
cators met required standards.
Environmental risk identification
In accordance with applicable laws and operational needs, we established and implemented the "Environmental Risk Identification and
Management System", defining departmental and role-based responsibilities and promoting a shift toward preventive environmental
management and proactive risk control.
Advancing robust green operations
Case: Changhong Battery strengthened emergency response capabilities for excessive heavy metal wastewater discharge.
Sichuan Changhong strictly controls emissions of air pollutants, wastewater, and noise, leveraging advanced treatment tech-
In 2025, Changhong Battery conducted target-
nologies and real-time monitoring systems to ensure all discharge indicators meet or exceed regulatory standards.
ed emergency drills and training for incidents
involving excessive heavy metal wastewater
monitoring data, aiming to effectively prevent,
control, and mitigate environmental accidents
and enhance emergency response capabilities.
Through these drills, wastewater treatment per- Pollutant emissions
sonnel improved their environmental awareness,
pollution prevention capabilities, and emergency
response skills, achieving proficiency in emer- We strictly comply with the Environmental Protection Law of the PRC, the Water Pollution Prevention and Control Law of the PRC, the
gency procedures. Air Pollution Prevention and Control Law of the PRC, the Law on the Prevention and Control of Environmental Pollution by Solid Waste,
the Law on the Prevention and Control of Radioactive Pollution, and the Sichuan Standard for Volatile Organic Compound Emissions
Emergency drill site from Fixed Pollution Sources. We have established the "Pollution Prevention and Control Management Procedures" based on the prin-
ciple of "prevention first, combining prevention and control", and built a three-tier control system covering source reduction, process
control, and end-of-pipe treatment, led by the Environmental Committee and the Safety and Environmental Protection Department to
minimize pollution and optimize resource utilization.
Environmental Training and Awareness Programs
We conduct environmental awareness and education activities through diverse and innovative approaches, promoting environmental Wastewater Management
knowledge and values among all employees to enhance environmental literacy and foster green lifestyles and production practices. In
cy and reuse rates to ensure ecological and environmental safety. During the reporting
period, all wastewater generated by key pollutant-discharging entities was treated to The wastewater discharge compli-
ance rate reached
%
compliant standards at self-built wastewater treatment stations within the plant prem-
ises, with no impact on employees or local community residents.
Improving wastewater treatment efficiency
We introduced biological wastewater treatment systems that leverage microbial degradation to efficiently break down pollutants in do-
mestic wastewater, significantly reducing key pollutant concentrations, achieving substantial annual emission reductions, and ensuring
stable compliance of discharged water quality.
Changhong Battery organized specialized environmental pro- Zhongshan Changhong organized activities for National Changhong Air Conditioning: Biodegradation systems enhance wastewater treatment efficiency and performance.
tection training sessions. Energy Conservation Week and Low-Carbon Day.
To enhance wastewater treatment efficiency and re-
gional water quality, Changhong Air Conditioning in-
stalled two additional domestic wastewater biodegra-
dation systems based on existing facilities, achieving
deep removal of ammonia nitrogen through enhanced
microbial degradation. Following implementation, am-
monia nitrogen concentration decreased from 45 mg/L
to 36.2 mg/L, with annual emission reductions reach-
Changhong Jiahua held the public welfare campaign "Protect the Ocean Together" on World Oceans Day, promoting beach ing 3.8 tonnes. Discharged water consistently met
waste sorting practices and encouraging public participation, with approximately 100 participants on-site. Following the standards, reducing environmental impact and provid-
event, beach cleanup activities were conducted, collecting approximately 15 kg of waste, including both recyclable and ing a replicable upgrade pathway for similar industrial
non-recyclable materials. parks. Changhong Air Conditioning wastewater biodegradation system
Improving wastewater reuse rate Source Reduction
We apply efficient pre-treatment processes, including chemical precipitation and coagulation filtration, to progressively purify waste- We optimize production processes and adopt low-emission technologies, such as promoting the replacement of low-VOC raw materi-
water. als; upgrade processes, such as adopting vacuum degreasing process to replace traditional gas-based degreasing, eliminating waste
gas generation and recovering volatile oil.
Changhong Battery: Investment in integrated wastewater treatment systems to increase reuse rates
Process Control
Changhong Battery invested over RMB 16 million to construct an integrated wastewater treatment system for heavy metals
including nickel, cadmium, silver, and zinc, with a daily treatment capacity of 2,000 tonnes. After pre-treatment through
Manage the equipment for waste gas generation in conjunction with the treatment facilities to ensure effective collection of waste gas;
chemical precipitation and coagulation filtration, wastewater undergoes advanced treatment using quartz sand, activated
conduct regular inspections, maintenance, and replacement of adsorbents (such as activated carbon and filter nets) for the waste gas
carbon, and RO reverse osmosis, enabling reclaimed water reuse in production. In 2025, 288,800 tonnes of wastewater were
treatment facilities.
treated, with 142,900 tonnes reused, achieving an industrial wastewater reuse rate of 49.47%.
Changhong China Smart Display
Welding fumes and organic exhaust gases are centrally collected, pre-treated using welding fume purifiers, then processed
With
through activated carbon adsorption and catalytic combustion systems, and finally discharged via a 28-meter exhaust stack.
Once activated carbon adsorption reaches saturation, it is regenerated through thermal air desorption. The desorbed organic
tonnes of waste-
compounds are directed to a catalytic combustion chamber (using platinum-palladium coated catalysts) for complete decom-
water were treated tonnes reused position, enabling cyclic reuse of activated carbon and efficient exhaust gas purification.
Achieving an industrial wastewater reuse rate of
End-of-Pipe Treatment
Construct waste gas treatment facilities employing a combination of advanced technologies, including activated carbon adsorption
(primary/secondary stage), UV photolysis, catalytic combustion, filter cotton filtration, spraying, and electrostatic oil fume treatment;
upgrade and transform existing treatment facilities, such as increasing the number of activated carbon adsorption stages, and intro-
ducing online monitoring systems, to improve treatment efficiency.
Changhong NeoNet Technologies
Regular wastewater monitoring
We collect emissions using gas hoods and treat welding fumes and VOCs through filtration, activated carbon adsorption, and
catalytic combustion. Fresh air systems are used to ventilate production areas, ensuring both fugitive and organized emissions
We deploy professional wastewater monitoring equipment and engage third-party institutions for regular sampling and testing to en-
at plant boundaries meet regulatory discharge requirements.
sure compliant wastewater treatment.
Changhong Battery
Regular Monitoring
We invested RMB 860,000 to install online monitoring systems for cadmium, nickel, COD, and pH, with automated monitoring
every two hours and outsourced professional operation and maintenance. Key pollutant discharge units regularly entrust third-party institutions to conduct waste gas testing to ensure compliance with emission
standards. The Company has installed facilities such as eco-friendly air conditioners, mechanical ventilation, and local exhaust venti-
lation to improve indoor air quality.
Waste Gas Management
Changhong Packaging
We monitor and control air emissions in accordance with national and local regulatory The compliance rate for air emissions reached For organic exhaust generated from carton processing, printing, profile processing, and hazardous waste storage, we estab-
standards. During the reporting period, all air emissions remained within regulatory lished an activated carbon adsorption-based collection and treatment system, achieving 100% compliant emissions during
limits, and no penalties were imposed by authorities. the reporting period in line with discharge permit requirements.
%
Noise management
Waste Disposal
We manage noise generated by production equipment such as air compressors, injection molding machines, and stamping machines
through integrated measures including source control, transmission mitigation, and boundary management to ensure compliant noise We strictly comply with the “Law of the PRC on the Prevention and Control of Environmental Pollution by Solid Waste” and the “Admin-
emissions. Through comprehensive measures, boundary noise levels remain consistently below the Class 3 limits of the "Emission istrative Measures for Hazardous Waste Operation Permits”. We have established the "Solid Waste Management Procedures" and the
Standard for Industrial Enterprises Noise at Boundary" (GB12348-2008). "Hazardous Chemicals Management Procedures", led by the Environmental Committee and the Safety and Environmental Protection
Department. Waste is managed through classification and the 3R principles (reduce, reuse, recycle), with clear control requirements
across generation, classification, collection, labeling, transportation, storage, and outsourced utilization and disposal.
We prioritize low-noise equipment and We reduce noise propagation through We further reduce boundary noise Solid Waste
install vibration isolation foundations sound insulation in facilities and opti- through distance-based attenuation.
such as rubber damping pads. mized layout design.
Categorized Management
Changhong Battery The Company clearly classifies solid waste into general industrial solid waste (waste plastics, waste steel, etc.) and hazardous waste
(waste alcohol, waste circuit boards, etc.). It set ups dedicated management departments and compliant storage facilities (general solid
We invested RMB 3.89 million to implement noise control measures for plate-forming and machining equipment such as waste warehouse, hazardous waste warehouse), implements zoned and labeled management, and conducts regular inspections and
presses, shearing machines, rolling machines, and pumps. Measures including sound insulation, noise reduction, vibration rectifications.
control, and acoustic barriers ensure compliance with Class 3 limits of GB12348-2008, with ongoing efforts to further enhance
noise control performance.
Changhong Minsheng Logistics
Solid waste generated from operations is collected through classified systems, with designated sorting bins installed across
the facility to consolidate waste from various collection points. Sorted waste is handled by sanitation authorities with daily
clearance, and sorting bins are regularly disinfected. Canteen food waste is collected by staff and transported and treated by
Electromagnetic radiation management licensed service providers.
We have established a comprehensive electromagnetic radiation management system covering the full operational process, supported
by systematic policies and protective measures.
Compliant Disposal
? We obtain licenses for the use of radiation-emitting equipment in accordance with regulations,
Compliance man-
and ensure that exempt equipment is properly registered.
?
agement and sys- For general industrial solid waste, classified disposal and standardized management are implemented. Recyclable portions are trans-
We establish radiation safety management regulations and dedicated emergency response
tem development ferred, through public bidding or similar procedures, to qualified recycling enterprises for resource recovery; non-recyclable industrial
plans, clearly defining responsibilities and response procedures.
waste is entrusted to qualified entities for compliant disposal. Hazardous waste is subject to strict full-process management. Qualified
entities are engaged to carry out comprehensive utilization or harmless disposal, and the hazardous waste transfer manifest system is
?
Source control We prioritize low-radiation processes and equipment and strengthen routine inspection and rigorously implemented to ensure that all types of waste are handled safely, lawfully, and in an orderly manner.
and operational maintenance.
assurance ? We ensure long-term stable operation of equipment, reducing radiation impact at the source.
Changhong Battery
? We implement safety training and assessment for operators and strictly enforce certification-
Personnel and
based employment.
?
workplace safety Storage facilities for general industrial solid waste and hazardous waste are constructed in accordance with regulatory re-
We install radiation warning signage in workplaces and equip facilities with safeguards against
management quirements, with strict implementation of zoned storage and labeling-based management. All types of waste generated by
operational errors and accidental exposure. various departments are classified and then centrally transferred to the corresponding storage facilities for standardized tem-
?
porary storage. During routine operations, the competent departments conduct regular supervision and inspections of on-site
We maintain equipment registers and conduct regular radiation safety inspections and storage management. All stored waste is entrusted to qualified entities for compliant and safe disposal.
Monitoring, super-
environmental monitoring.
?
vision, and contin-
We implement closed-loop remediation for identified risks, with complete documentation and
uous improvement
record archiving.
Resource Recovery We incorporate electronic waste classification, collection, and disposal requirements into onboarding
Company-wide and ongoing EHS training for all employees. We engage environmental experts to deliver specialized
The Company actively promotes waste-to-resource conversion through physical separation of oil/emulsion-containing metal scraps to management training on pollution risks, regulatory requirements, and operational standards for electronic waste,
achieve solid-liquid separation and material recovery, systematic recycling of plastic rejects and molding gates, and tender-based sales enhancing employee awareness and practical capabilities.
of sorted waste materials to facilitate resource reuse.
Changhong Packaging NeoNet Technologies
Contracts are signed with qualified waste recycling and utilization entities to handle the compliant disposal and utilization During the reporting period, 137 units of electronic waste, including discarded laptops, monitors, and instruments, were
of general industrial solid waste generated during production and operations. During the reporting period, the two facilities generated. All data on storage devices were irreversibly destroyed through physical means. The waste was centrally stored
generated 5,026.58 tonnes of general solid waste (including waste paper, wood, plastics, EPE, scrap metal, and sludge). A at designated temporary storage sites within the facility. Quotations were solicited from three legally qualified third-party
total of 5,057.71 tonnes were transferred for utilization, including 100.91 tonnes carried over from 2024, with 69.78 tonnes providers, and a competitive bidding process was conducted via the ISRM "Changhong Smart Supply Chain" platform, with the
remaining in inventory. selected qualified bidder awarded the contract for compliant disposal.
Digital Management
Hazardous chemicals
Leveraging platforms such as "Zero-Waste Sichuan", the Company has implemented end-to-end digital tracking of solid waste through
its entire lifecycle from generation and temporary storage to final disposal. This system enables online processing of inventory records
and electronic waste transfer manifests. We have established the "Hazardous Chemicals Management Procedures", defining
control requirements across procurement, transportation, storage, use, and dispos-
al. We enhance end-to-end management of hazardous waste through IoT integration
The compliant disposal rate of hazard-
and digital labeling, continuously improving information-based management across
E-waste the lifecycle.
ous waste reached
In 2025, the compliant disposal rate of hazardous waste reached 100%. All entities %
We implement full lifecycle management of electronic solid waste based on the principles of "reduction, resource utilization, and harm- subject to municipal and county-level annual hazardous waste assessments met
less treatment". Through source reduction, classified collection, standardized storage, compliant transportation, professional disposal, compliance requirements.
and company-wide management, we achieve a closed-loop system. No environmental incidents related to improper electronic waste
disposal occurred during the reporting period.
Personnel are required to un-
We maintain lifecycle management records for equipment, documenting procurement and usage, and derstand chemical properties
Source Reduction conduct regular maintenance and upgrades to extend service life. Obsolete equipment is prioritized
Chemicals are stored by category and emergency measures and
for internal reallocation, and only scrapped when repair is not feasible. respond promptly in accordance
We strictly review supplier We select qualified carriers with segregation, supported by
qualifications and obtain safe- and implement emergency appropriate safety conditions and with MSDS to ensure risks are
In key areas generating electronic waste, including production sites, offices, and R&D laboratories, we ty technical documentation. response measures. regular inspections. controlled at every stage.
Classified collection install dedicated collection containers with clear labeling. Containers are designed to prevent leakage
and damage, avoiding secondary pollution.
Procurement Transportation Storage Use
We designate dedicated storage areas for electronic waste within our facilities, equipped with an-
Standardized storage ti-seepage, rainproof, sunproof, and containment measures, along with leak collection systems, fire- Hazardous chemicals management procedures
fighting equipment, and warning signage.
Compliant trans-
Electronic waste transportation is carried out by qualified service providers.
portation Enhancing resource utilization efficiency
Sichuan Changhong advances energy-saving upgrades in production and promotes clean energy substitution. We strengthen
Professional We select electronic waste disposal partners through public tendering, qualification review, and site efficient water use and enhance eco-design, recycling, and reduction of raw materials to minimize resource consumption
disposal inspections, conduct regular reassessments, and promptly eliminate non-compliant suppliers. across the full lifecycle.
Energy Utilization Impact Im-
Financial
Opportunity Description Dura- pact Mitigation Measures
Impact
tion Level
Governance
Early strategic deployment enables com-
• We increase investment in low-carbon technology
panies to enhance brand competitiveness, Medium R&D, optimize product design and materials, and
expand into high-value markets, effectively Revenue term Me- build a green supply chain.
We have established an energy con- mitigate future carbon cost pressures, and Increase Long dium • We actively pursue authoritative certifications and
servation and emission reduction build a sustainable long-term profitability term conduct transparent and credible green marketing
Three-tier Energy Management System
task force. Under its guidance, we model.
to build market trust.
implement a three-tier manage-
Company
ment system at the Company, en-
ergy management department, and
team levels. We have developed and
enforced the "Energy Management
Energy Management
Measures" and "Energy Management Impact, Risk, and Opportunity Management
Assessment Measures", with ongoing
monthly energy reporting, mid-year
We actively implement energy conservation and carbon reduction initiatives by upgrading high energy-consuming equipment and re-
evaluations of energy-saving targets,
Teams newing key energy-use assets to improve efficiency and reduce emissions.
and deployment of subsequent action
plans. During the reporting period, the
Company obtained certification for its
Sichuan Changhong Energy Manage-
energy management system.
ment System Certification Certificate Energy Metering and Monitoring
The Company deploys integrated information systems for water, electricity, and gas measurement, and establishes remote meter
reading and real-time monitoring systems to promptly detect abnormal energy consumption. It implements three-tier metering man-
Strategy
agement for high-energy-consumption equipment, develops energy conservation incentive/penalty mechanisms, and executes daily
supervision and performance evaluation protocols.
Impact Im-
Financial
Risk Description Dura- pact Mitigation Measures
Impact Energy Inspections and Performance Assessment
tion Level
• We proactively reserve emergency power generation Regular energy inspections and spot checks were carried out. The energy and utilities operation center organized professional inspec-
Extreme weather events, such as prolonged Short tions on a monthly basis, conducting strict checks ranging from energy management records to the on-site use of water, electricity
equipment to respond to unexpected power
heatwaves and droughts, may trigger power term and gas.
restrictions or outages, potentially disrupt- Revenue restrictions.
ing production. The intermittency of renew- decreased Me- • We advance the development of distributed
able energy sources, such as photovoltaic and costs Long dium photovoltaic and other renewable energy projects
power, and limitations in energy storage increased term within our facilities, which are integrated with energy
technologies may also affect the continuity of
storage systems to enhance power supply self-
energy supply.
sufficiency.
In 2025, we conducted inspections of energy-consuming units and identified issues, including
Under the national "dual carbon" targets, pol-
icies on total energy consumption control and • We systematically advance low-carbon projects,
carbon emission constraints are becoming in- Cost in- Me- management-related issues, related to energy waste, and safety-related issues. All identified
including photovoltaic systems and waste heat
creasingly stringent. Companies are required creased dium
recovery, to optimize our energy structure in phases.
• We collaborate with universities and research
to transition toward low-carbon energy struc- term High
Expend-
tures, with significantly increased investment iture Long issues have been addressed through closed-loop remediation, achieving a rectification rate.
in renewable energy substitution and energy institutions to develop energy-saving technologies
increased term
efficiency upgrades. Failure to meet regulatory tailored to our operations, reducing transition costs.
requirements may result in penalties.
Optimizing the energy structure Metrics and targets
We vigorously promote the use of clean energy to drive carbon reduction, while continuously upgrading energy-use equipment, intro- In 2025, the Company successfully achieved its energy-saving targets for television products. Looking ahead, we will promote energy
ducing high-efficiency technologies, and phasing out outdated capacity. efficiency across all product categories and develop low-energy product lines.
Clean energy utilization Prod- Completion of 2025 Energy-saving
Unit 2025 Energy-saving Targets and Tasks Performance
ucts Targets
Changhong Air Conditioning, Changhong Jijia, and Changhong China Smart Display
have jointly advanced the electrification of on-site logistics equipment, replacing fu-
el-powered forklifts with high-efficiency electric forklifts in phases, with a total of 39 Changhong Comprehensive energy consumption per Comprehensive energy consumption
units replaced. Based on estimates, electric forklifts reduce fuel consumption and Tele-
China Smart 10,000 units was less than 4.491 tonnes of per unit: 4.322 tonnes of standard Target achieved
lower carbon emissions by approximately 357.6 tonnes per year. vision
Display standard coal equivalent. coal equivalent per 10,000 units
with a total of lower carbon emissions by approximately
Changhong Air Comprehensive energy consumption per Comprehensive energy consumption
Air Condi- condi- unit will be less than 12.216 tonnes of stand- per unit of 11.19 tce/10,000 standard Target achieved
tioner tioner ard coal equivalent per 10,000 units. sets
units replaced tonnes per year
Electric forklifts
Energy equipment upgrade
Water Resources Utilization
Changhong Jijia facilities introduced a dual regenerative tilting furnace. After the upgrade, approximately 30 Nm? of natural
gas is saved for each tonne of molten aluminum processed. Based on projected orders, annual natural gas savings exceed
combined benefits in energy saving, carbon reduction, and cost efficiency. lifecycle water management covering "water abstraction, use, discharge, and conservation" as a core principle. Through the implemen-
tation of the "Energy Management and Assessment Measures" and related systems, we define and assess annual water-saving targets,
prevent water-related risks, conduct regular inspections of water-use equipment and pipeline networks, promptly address leakage,
and advance refined management to improve water efficiency.
Water Resource Risk Management Mechanism
We conduct regular water risk identification and management, covering water scarcity, water quality, and policy-related risks.
Scarcity risk
We systematically assess water stress at each production and operation location.
Water quality risk
We identify risks of raw water quality deterioration caused by upstream pollution, extreme weather
events such as floods, or operational incidents, as well as challenges to meeting production water
quality standards and wastewater discharge requirements.
Policy risk
We closely monitor national and local policy developments related to water abstraction permits,
Deployment of dual regenerative energy-efficient tilting furnace water efficiency quotas, wastewater discharge standards, water resource fees, and environmental
protection taxes, and assess their potential impact on compliance costs and operating models.
In 2025, we applied the World Resources Institute (WRI) water risk tool to assess water abstraction risks across our major domestic
Changhong Packaging
production and operation sites. Based on the results, we identified key high-risk indicators and developed targeted adaptation and
mitigation measures.
We have established an environmentally compliant treatment system for ink-washing wastewater, enabling full recycling
after treatment and achieving "zero" discharge to the external environment, with annual water savings of approximately 500
tonnes.
Technology upgrades and equipment optimization
Optimized its production processes, promoted the renovation and elimination of high-water-consuming equipment, and strictly im-
plemented the review of water resources recycling utilization for technology transformation projects to ensure efficient water use. We
update system components and select high-quality compatible parts to ensure leading performance and reliability, safeguarding stable
and efficient operations at the source.
Changhong Jijia
Changhong Jijia: Through process upgrades to barrel and rack galvanizing lines, we save 29,900 tonnes of water annually.
Major domestic production bases Key high water risk indicators Targeted risk control measures
Establishing a water measurement and monitoring system
Mianyang production base Water stress (high competition for water), We promote water recycling and imple-
untreated connected wastewater, and ment equipment upgrades to reduce wa- We have established a water measurement and monitoring system to track and analyze water usage data across the full lifecycle, from
Hefei production base
poor sanitation conditions ter stress risks. source to end use. Through real-time monitoring of water consumption, we promptly identify and investigate abnormal usage, ensuring
standardized and controllable water management while improving efficiency and refined management practices.
Untreated connected wastewater and We upgrade sanitation infrastructure to
Jingdezhen production base
poor sanitation conditions improve hygiene conditions.
Changhong Air Conditioning
Coastal flood risk, untreated connected We track water consumption using a three-tier metering system at "municipal supply connections, building entry points, and
We enhance flood control infrastructure
Zhongshan production base wastewater, and poor sanitation condi- process equipment inlets". Abnormal water usage is promptly inspected to ensure consumption aligns with expectations.
to mitigate flood risks.
tions
Water resource risk management measures
Based on identified water risks and regional differences, we implement targeted measures, including water conservation, reuse, and Raw materials
equipment upgrades, to effectively mitigate and manage various water-related risks.
In 2025, to ensure D (delivery) across Q (quality), C (cost), S (service), and T (technology), we set material completeness as a strict pro-
curement baseline, achieving 100% completeness throughout the year. We successfully mitigated supply shortages in refrigerants and
Continuous water recycling and reuse the storage industry, ensuring 100% supply for high-risk materials.
We conduct strict reviews of raw materials and advance sustainability certification. During the reporting period, 100% of raw material
We actively promote the treatment and reuse of industrial wastewater, adopting various measures such as sedimentation purification, suppliers obtained environmental compliance certification.
zero discharge of electroplating wastewater, and recycling of glass screen cleaning wastewater, to improve the recycling rate of water
resources. We have also established a steam waste heat recovery system to send residual steam back to the boiler, reducing fresh
water consumption, and promoted energy-saving cooling technology to optimize equipment cooling methods.
Key measures to ensure material completeness and supply
Sales On-site service Pull Back + Storage Recycling Logistics
Optimizing supply • We introduce high-quality new supply resources and leverage existing advantageous resources. We Big B Channel
resource allocation Delivery and installa-
eliminate single-source materials and promote standardization of materials such as copper pipes, E-commerce Delivery and installation tion of new machines Changhong Minsheng
KT Channel Channel of new machines
speakers, and electronic components. Small B Channel Trade-in Used Used
Machines Self-supporting logistics Machines
Appraisal Third Party Logistics
Sinking
Strengthening Basic Channel
Channels
Service Provider
• Market analysis and outlook reports for key materials are issued on a monthly and quarterly basis.
Sell Old
market analysis of Owned Channels Machines Remove and pull back
materials Hongchuang Youpin Cooperative logistics Undecycled Products
Product
Products Users External Sales
• We align supply and demand based on annual planning. • We
Requirements
Lean planning risk establish dashboards for delivery
• We conduct daily checks on completeness risks for
Commissioned dismantling products returned to remanufacturing
management and inventory alerts.
RD and Manufacturing Recycling Recycling Dismantling
electronic materials.
Consumer BG Parts and Components
Maintaining a sup-
• Internally: We coordinate sales, R&D, production, and supply to ensure material completeness.
Changhong Moulding
ply-demand coordi- Sichuan Injection Plastic Deep Processing Waste plastics
• Externally: We strengthen communication and collaboration to enhance supply-demand relationships.
Changhong
Chang- Meiling Molded
nation mechanism hong Product ... ... Modified
plastics
Metals, etc.
Sheet
Corporate BG metal,
etc.
Changhong ... ...
Packaging
Commissioned dismantling of scrap and defective products
Circular economy across the full life cycle of Changhong home appliances
Developing a green circular economy
We actively develop a circular economy by establishing full lifecycle systems for recycling, dismantling, and reuse of house-
hold appliances.
Strengthening biodiversity protection
As the principal undertaking entity for the used home appliance recycling segment of the Group’s home appliance business, Changhong
Gerun has established more than 1,000 used home appliance collection points across China and built the country’s first resource recov-
ery production line for waste display screens. Leveraging proprietary recycling channels and dismantled material supplies, it focuses The Company actively supports international initiatives such as the United Nations Convention on Biological Diversity and
on TVs, computers, mobile phones, and tablets to achieve environmentally efficient extraction of rare metals (indium, silver, etc.) and adheres to the relevant requirements of the China National Biodiversity Conservation Strategy and Action Plan (2023–2030).
sustainable regeneration of glass/plastics, building a nationally and globally leading demonstration base for advanced display screen It places strong emphasis on the protection of ecosystems and biodiversity, with related matters centrally coordinated by the
resource recovery. Environmental Committee. During project siting and construction, the Company systematically assesses potential biodiversity
risks and implements appropriate mitigation measures.
Changhong Gerun has cumulatively dismantled million units of waste electrical appliances. Site compliance
We adhere to compliant site selection. All projects are located within industrial parks on designated industrial land,
avoiding nature reserves, scenic areas, ecological protection redlines, and other environmentally sensitive zones.
Projects comply with planning requirements and are not subject to significant environmental constraints.
This includes approximately refrigerators, televisions, Construction
We strictly implement measures for dust, wastewater, and noise control in accordance with environmental impact
environmental
assessment requirements. We carry out vegetation restoration and site greening for exposed land, and complete
management
air conditioners, washing machines, and computers. hardening or revegetation after construction to minimize environmental impact.
Operational pol- After project commissioning, we effectively manage and control all types of pollutants to ensure that operations do
company’s controlling shareholder.
Innovation-driven
Changhong
advancing industrial upgrading
Technology is the foundation of Changhong, and innovation
is its hallmark. Sichuan Changhong positions innovation
as its core engine, focusing on breakthroughs in key
technologies, strengthening product and service quality,
and safeguarding data privacy and security, while enabling
high-quality industrial upgrading through a comprehensive
innovation framework.
Driving Breakthroughs in Core Technologies 77
Strengthening Product and Service Safety and Quality 88
Strengthening Data Privacy Management 96
Respond to the United Nations Sustainable
Development Goals
Driving breakthroughs in core technologies Opportunity Financial Impact Impact
Mitigation Measures
Description Impact Duration Level
We pursue an innovation-driven development strategy, using breakthroughs in core technologies as a key lever. Through a
The widespread adoption of
systematic, multi-dimensional approach spanning innovation governance, full-category product R&D, intelligent manufac-
artificial intelligence and the
turing upgrades, and digital transformation, we accelerate the efficient commercialization of innovation outcomes and con-
rapid development of relat-
tinuously enhance our core competitiveness. The Company actively deploys relevant technologies,
ed industries provide tech-
Revenue Long launches technical capability reserve projects, and
nological support for cost High
increased term advances the commercialization and industrial incuba-
reduction and efficiency im-
tion of innovation outcomes.
provement. Early strategic
Deepen Innovation-driven Development deployment is expected to
create new growth drivers.
We position technological innovation as the core driver of industrial transformation and upgrading. Through a systematic framework
covering governance structures, strategic opportunity and risk management, end-to-end innovation management, and target execu-
tion, we build a solid foundation for high-quality development.
Impact, Risk, and Opportunity Management
Governance
Build Innovation Technology Platforms
The Company has formulated the Technological Innovation Management Measures, Technological Innovation Incentive Measures, and Guide-
lines for R&D Project Management, among other systems, to clarify the overall strategy, organizational support, project management prin-
ciples, and related measures for technological innovation. We have established a robust governance structure for innovation. The technology We are committed to continuously enhancing our innovation capabilities, following a dual approach of “independent innovation + col-
management function leads innovation initiatives, with the Chairman providing oversight, while R&D centers are responsible for executing laborative innovation”. We optimize our technology framework, deepen research in applied foundational and common technologies, ad-
strategic plans and delivering specific research projects. vance product and manufacturing technology development, and strengthen our role in enabling and supporting industry development.
Strategy
Establish the Advanced Tech- The Group has established an Arti- The Group has established over 20
We recognize the opportunities and challenges brought by technological change. We continuously increase investment in R&D and talent, set nology R&D Center to carry ficial Intelligence Laboratory and a industrial support platforms includ-
annual R&D objectives and plans, and regularly review, track, and update implementation progress. We have set a target of over 10% year- out industrial incubation in Cloud Computing and Big Data Re- ing an Innovation Design Center and
on-year growth in R&D investment for the coming year, allocating increased investment to product upgrades, technology advancement, and emerging sectors and for- search Center to strengthen tech- a Smart Home RD Center, leverag-
capability reserves. ward-looking research on ap- nical coordination with the Digital ing technical capabilities to enhance
plied basic technologies. Business BG, driving research in AI product competitiveness across in-
application scenarios and digital fac- dustries.
tory solutions.
Risk Financial Impact Impact
Mitigation Measures
Description Impact Duration Level
The Company formulates and dy-
Forward-looking investments in foun- (Note: In February 2026, the “Advanced Technology R&D Center” was renamed the “Advanced Product R&D Center”; the “Artificial
namically updates its technolo-
dational and differentiated core technol- Intelligence Laboratory” and the “Cloud Computing and Big Data Research Center” were integrated into the “AI and Digital-Intelligent
gy strategy, strengthens project
ogies may face risks such as delays in Product R&D Center.”)
Cost in- initiation review, establishes a
commercialization, R&D progress and Medium term Medium
creased stage-gate decision-making and
costs not meeting expectations, or fail-
investment mechanism, and en-
ure to achieve timely conversion, poten-
tially resulting in R&D losses.
sures timely loss-cutting where Standardizing R&D project management
necessary.
Our consumer electronics products involve
patents related to audio and video cod- We engage with patent holders to The Company has established a comprehensive RD project management process, forming a PDCA cycle that includes goal setting, process
ing and decoding, as well as digital signal promote cooperation, support in- control, performance evaluation, and continuous improvement. We have issued the “R&D Project Management Guidelines”, defining full
Cost in-
transmission standards, which may give Medium term Medium dustry-led negotiations to optimize lifecycle standards for project initiation, progress control, risk management, and outcome acceptance to ensure efficient project execution.
creased
rise to patent disputes in domestic and in- solutions, and maintain dynamic
We standardize R&D management across subsidiaries, guiding increased investment and improved output efficiency. We provide foundational
ternational markets, potentially affecting cost provisions.
R&D support, promote systematic cost optimization initiatives among key subsidiaries, and conduct comprehensive diagnostics for those with
business operations and profitability.
capability gaps, proposing improvement plans to enhance the effective utilization of R&D expenditure on technology platforms.
Product Innovation Practices And Achievements
•Acceptance decision
•Project initiation decision
We focus on core product innovation priorities and advance breakthroughs in key technologies. All major business segments have achieved
•RD plan review
•Milestone decision technology upgrades and product enhancements, with innovation outcomes receiving multiple domestic and international awards, strength-
•Project initiation decision
•Acceptance decision
ening product differentiation and market competitiveness.
•Empowerment contract
Product strategy
Market information
In 2025, we received multiple prestigious international and domestic innovation awards.
Customer feedback RD plan Pre-research
Capability reserve stage Empowerment stage
(Direction recommen- stage (if neces- Product Design
Competitive information (market-driven) (application of results)
dation) sary)
Technology trendsProd-
uct portfolio We received two iF Design Awards, one Red Dot Award, and two International CMF Design Awards.
Industrialization stage Technological innovation
(commercialization of
Project initiation results)
We received one second prize and one third prize of the Provincial Science and Technology Progress Award, and one first
decision
prize of the China Association for the Promotion of Science and Technology Industrialization Award.
Strengthening Scientific and Technological Innovation Collaboration
Smart TVs
The Company has built diversified bridges for collaboration in scientific and technological innovation, deepened industry-university-research
collaboration, and accelerated the commercialization of results. The Company has formed a close industry-university-research collaboration
Focusing on core technologies such as AI voice, Generative AI Models, Mini LED, and RGB Mini LED, the Company has deepened
ecosystem with more than 20 domestic and overseas universities, more than 10 research institutes, and more than 80 business partners.
industry collaboration.
Additionally, it has established more than 20 joint laboratories, joined over 40 associations and industrial alliances. By fostering an extensive
resources-based collaborative innovation ecosystem, the Company improves innovation collaborative efficiency and drives industrial optimi- We integrate emotional value into product design and launched the No.5 “Chasing Light” Q10Air series, creating a premium differ-
zation and upgrading. entiated product line, which received the “2025 China Electronic Video Industry Association Technology Innovation Award”.
We continue to increase investment in AI televisions, expanding AI-driven user experience scenarios. In 2025, the Company re-
Case
ceived authoritative recognition as a pioneer in AI TV.
The Company has maintained continuous collaboration with the University of Electronic Science and Technology of China on several
key projects, including flexible sensor development and smart home intelligent agent development.
Participation In Industry Standard Setting
We uphold a strong sense of industry responsibility and innovation leadership, actively participating in the development of national, industry,
and group standards, including product energy efficiency standards, SRRC certification management measures, product information security,
and product safety standards.
During the reporting period, we participated in the development of 37 standards, including 25 national standards, 4 industry standards, and 8
group standards. Participation in industry standard development reflects the Company's technical strength and industry influence.
Air conditioner Washing Machines
We achieved multiple breakthroughs in core technologies: The industry’s first “full-screen flush integration + AI washing and drying care” combines a fully integrated structure with end-to-end
AI-powered washing and care.
Our AI cloud-based energy-saving air conditioning technology enables personalized energy optimization through dual algorithm and
data-driven mechanisms, reaching an advanced industry level. An industry-first advanced drum cleaning system, including inner drum rinsing, lint filtration, and backflushing functions.
The “Wending” inverter technology platform leverages AI-based vibration suppression and other optimizations to significantly reduce
noise and vibration, enhancing user experience.
We pioneered industry-first technologies for detecting air conditioner blockages and air intrusion, enabling closed-loop risk preven-
tion, with refrigerant monitoring accuracy reaching a leading industry level.
We introduced the industry’s first “Shanshui” air ecosystem management solution, using AI coordination to intelligently integrate con-
trol of temperature, humidity, fresh air, negative ions, and air cleanliness, creating an indoor “microclimate” that closely resembles
a natural environment.
Compressors
The NUD-NA series ultra-efficient compressors by Changhong Huayi achieved an energy efficiency ratio above 3.0 (under CEPG con-
ditions) and were selected as a Coca-Cola global preferred supplier for five consecutive years.
Refrigerators (Freezers) The self-developed VNW series inverter units have achieved industry-leading Coefficient of Performance (COP), while the DW series
ultra-micro onboard DC compressors are the smallest products globally.
AI defrosting and cloud-based freshness preservation technology to enhance both energy efficiency and food preservation perfor- In electronic control, we improved the efficiency of ultra-efficient household inverter boards, developed the new T series with fully
mance, reaching an advanced industry level and enabling large-scale deployment. self-developed algorithms, and completed a solution for electrolytic capacitor-free inverter boards.
We developed multi-system constant-temperature refrigeration and quality defrosting technologies to address key industry chal- Zhejiang Weile, a subsidiary of Changhong Huayi, focuses on the new energy vehicle sector. Breakthroughs in low-temperature heat
lenges in food preservation, ingredient thawing, and cooked food storage, and applied them to the M Fresh product series. pump technology have enabled noise and vibration performance significantly exceeding automotive-grade standards, continuously
expanding application scenarios for onboard compressors.
ICT Technology Services
Changhong Jiahua has expanded into emerging fields such as cloud computing, intelligent computing centers, digital security, the
metaverse, and the low-altitude economy, integrating products and solutions to serve diverse industries and application scenarios.
Changhong Jiahua, in collaboration with the 081 Group, has deployed an integrated air-ground sensing and communication system
platform to address bottlenecks in the low-altitude economy, with the project receiving third prize in a themed track of an Internet
Innovation Competition.
We continue to empower the XR ecosystem and have been recognized as one of China’s Top 50 VR Enterprises for three consecutive years.
In 2025, Changhong Jiahua’s “Smart Business” capability system was recognized as a “2025 New-Generation Information Technology
Industry Innovation Service Provider”.
Product development addressing environmental challenges Advancing intelligent manufacturing
we conduct green design in accordance with the “Administrative Measures for the Restriction of the Use of
We focus on the intelligent upgrade of the entire production process, building an efficient, precise, and green intelligent manufacturing
For products in Hazardous Substances in Electrical and Electronic Products”. Components certified through national environ-
system through multi-dimensional initiatives to enhance quality and efficiency, reduce costs, and strengthen the foundation for high-quality
the domestic mental protection testing are used, and in line with the “Implementation Arrangement for the Conformity As-
development.
market sessment System of the Restriction of the Use of Hazardous Substances in Electrical and Electronic Products”,
our testing center performs environmental testing and conformity certification for complete products.
For products
we design and manage materials in accordance with environmental requirements of target markets, such as
in overseas
the EU REACH regulation and RoHS requirements. Six of the Company's factories were selected as "Sichuan
markets One factory of the company has been
Province Advanced-Level Intelligent Factories", including
selected as a “National Excellent-
Level Smart Factory”.
In 2025, the Company completed energy efficiency filing for 185 flat-panel display models, obtained energy-saving certification for 61 product Sichuan Changhong Changhong
Changhong Jijia
NeoNet Technologies Moulding
series and 18 certification changes, and secured environmental labeling certification for 69 products. We obtained 122 new energy-saving Changhong China Smart Display
certificates, covering a total of 221 models; successfully passed CQC unannounced factory inspections and four rounds of “Ten-Ring” certi-
Changhong Changhong Air
fication audits; completed RoHS conformity assessment for all models; and secured 15 additional voluntary certifications, including China Changhong Precision
Packaging Conditioner
Environmental Labeling Certification and China Green Product Building Materials Certification.
Metrics and targets
Intelligent manufacturing technologies and applications
In 2025, the effective utilization rate of the Company’s R&D expenditure on technology platforms reached 90%, successfully achieving the
target set in 2024 of increasing the effective utilization rate to 85%. Meanwhile, the Company’s R&D investment in 2025 is presented in the
table below:
RD investment Proportion of R&D investment in operating revenue
Connectivity and centralized Digitalization and Predictive maintenance and
control visualization efficient decision-making
Leveraging IoT and big data, we built We implemented a 2D digital twin Using edge computing and AI-based
an equipment cluster centered on system to digitally upgrade the fin- machine learning, we built a proac-
the MES system to enable inter- ished goods automated warehouse, tive maintenance system to enable
connectivity and centralized control addressing fault diagnosis and infor- predictive equipment maintenance
across production lines and equip- mation transparency challenges and and reduce failure risks; we de-
ment, driving deep integration of IoT enabling real-time visibility of equip- veloped digital dashboards across
and automation and achieving intel- ment operations and workflow pro- all business areas and established
clusters. warehouse management system to support precise decision-making
for raw materials to track material and enhance both maintenance and
R&D Targets Innovation Targets
flows and update inventory in real decision support capabilities.
time, improving inventory efficiency.
In 2026, we will continue to increase R&D investment, main- In 2026, we will accelerate the deployment of AI-driven ap-
taining an annual growth rate of no less than 10%. We will plication scenarios, further strengthen the product manager
steadily improve the effective utilization of R&D expenditure on system, shorten the time to market for new products, improve
technology platforms, focus on key technology breakthroughs commercialization mechanisms, and continuously enhance
and high-potential product development, and optimize the pre- the efficiency and market alignment of innovation outcomes.
cise and efficient allocation of innovation resources to further
enhance overall R&D effectiveness.
Intelligent manufacturing factory cases 081 Group Smart Factory
In automation upgrades, we introduced 13 types of automated equipment, including vacuum infusion machines, automatic welding
Changhong China Intelligent Display Smart Factory machines, and automatic winding machines, enabling automated operations across multiple processes and driving overall manu-
facturing capability improvement; in digitalization, we completed the implementation of information systems such as PLM and MES.
Leveraging IoT and big data, we established an MES-centered equipment
cluster covering more than 1,100 key devices, enabling interconnectivity
and centralized control across production lines and equipment. Based Changhong Power Smart Factory
on industrial robotics, we applied AI, machine vision, and force-sensing achieving % numerical control in
technologies to independently develop fully automated equipment for key critical processes and improving labor productiv-
processes such as feeding, processing, assembly, and palletizing, achiev- We continue to advance automation upgrades in key processes and deploy intelligent equipment, introduce automated production
ing 100% numerical control in critical processes and improving labor pro- lines, and build integrated information systems around production, including the implementation of MES and the advancement of
ductivity by 65%. ity by %. data integration.
Empower Digital Transformation
The Company is guided by the annual principle of “putting users at the center and advancing full-factor digitalization”. We deepen AI adoption,
enhance digital management capabilities, and optimize smart supply chain platforms to empower operational performance and industrial
innovation through digital transformation, with the goal of becoming a benchmark for digital transformation in manufacturing.
Digital Transformation Initiatives:
Smart finance system upgrade
We deployed the S6 intelligent finance system, integrating OCR and AI models with financial management, and implemented
Changhong NeoNet Technologies Smart Factory applications such as intelligent order creation and automated approval to advance intelligent and automated finance practices.
Warehouse Management System (WMS), Manufacturing Execution System (MES), intelligent logistics system, and warehousing Building a digital management center
systems work in synergy to enable real-time tracking, intelligent sorting, unmanned delivery, smart fleet scheduling, and route
optimization. We advanced the development of the digital management center, establishing indicator systems across six key control areas,
including procurement management, technological innovation, and digital enablement, to enhance standardized and refined op-
erations management and provide strong support for operational governance.
Developing intelligent workplace applications
We established the Hongxi intelligent application ecosystem and successfully incubated AI applications for common scenarios,
including document comparison, document analysis, and knowledge-based Q&A.
Building a knowledge service platform
We developed the Hongyunhui knowledge platform, innovating a “data + AI” model for data utilization, and deployed intelligent data
query and reporting applications to effectively improve the efficiency and scientific rigor of business decision-making.
Regular risk assessment and reporting
Case: Demonstrating “intelligent transformation and digital upgrade” to drive industrial upgrading in western regions
Business units conduct periodic IP risk reviews, while headquarters applies ongoing oversight to develop a company-wide risk map
and report to management, ensuring risks remain transparent and controllable.
In April 2025, the Western New Industrialization Development Conference was held at Phase II of the Zhongguancun Project in Mianyang,
Sichuan. As a representative enterprise of western China, Sichuan Changhong presented its achievements in leveraging cross-industry
and cross-domain industrial internet platforms to enable intelligent transformation and digital upgrading. This presentation demonstrat-
ed the Company’s core capabilities, strengthened its brand influence and leadership in the industrial internet field, set a benchmark for Performance evaluation and accountability
digital transformation and upgrading in western industries, and effectively promoted the transition of regional manufacturing toward
intelligent and green development.
The effectiveness of IP risk management is incorporated into annual performance assessments for selected business units and sub-
sidiaries, with clear accountability mechanisms in place for significant losses caused by failures in risk management.
Strengthen Intellectual Property Protection
Development of the Intellectual Property Protection Workforce
The Company consistently upholds the principles of respecting intellectual property rights and avoiding legal risks, and makes every effort to
safeguard the legitimate rights and interests of the Company and its investors. At the headquarters level, the Company maintains a dedicated IP team, while 28 subsidiaries have full-time or part-time patent management
teams or personnel, with a total of 102 staff engaged in IP management. The workforce primarily includes full-time patent professionals,
In 2025
part-time legal staff, and part-time technical engineers. Among full-time personnel, over 80% hold patent agent qualifications, including
nationally recognized experts, senior IP agents, and licensed attorneys.
The Company filed
Intellectual Property Protection Training
We actively conduct IP protection training programs covering patent operations, trade secret protection, and trademark management, aiming
to build a comprehensive IP protection system and safeguard innovation-driven development.
Intellectual Property Protection System
The Company strictly complies with regulations such as the “Enterprise Intellectual Property Management Standard” and the “Intellectual
Property Management Manual”. We have established policies including the “Patent Management Measures” and the “Patent Risk Man-
agement Measures”, built a comprehensive and standardized intellectual property management system, and obtained certification for the
intellectual property management system. Strengthening Product and Service Safety and Quality
The Company has established an intellectual property protection governance structure, overseen by senior management and led by the
General Administration Department, with dedicated IP protection teams in each department responsible for intellectual property and patent The Company adheres to its quality policy of “customer first, excellence-driven, intelligent and quality manufacturing, inno-
protection. vation-led”. We strictly comply with the Law on the Protection of Consumer Rights and Interests, the Product Quality Law,
and other applicable laws, regulations, and standards, ensuring product and service quality in a comprehensive manner and
effectively safeguarding the legitimate rights and interests of consumers.
Intellectual Property Risk Management
We continuously strengthen intellectual property risk management by refining processes, enhancing risk identification and assessment, and
reinforcing accountability mechanisms to build a robust IP protection framework. Governance
The Company has established policies such as the “Service Quality Management Measures”, defining management processes for product
Risk database development and sharing
quality and customer service. We incorporate product and service quality management into our governance framework, building a compre-
hensive, multi-level quality management system. The Company has established a dedicated quality management department at headquar-
We systematically collect and dynamically update internal risk case repositories and external risk alert databases, regularly report to ters to oversee end-to-end product and service quality management. We have also built a professional product testing center and strength-
management, and share risk cases across business units. ened after-sales service operations to ensure product inspection, acceptance, and service support, delivering reliable, high-quality products
and services to customers.
Strategy Quality Risk And Opportunity Management Process
The Company has established the “Quality Risk and Opportunity Management Procedure”, defining structured processes and measures for
identifying, analyzing, evaluating, and responding to product quality risks and opportunities. In 2025, all quality risks remained within ac-
Risk Financial Impact Impact
Mitigation Measures ceptable and controllable levels, with no major high-risk quality incidents, effectively avoiding significant economic losses and major quality
Description Impact Duration Level
accidents.
We have established a full-chain quality
Quality issues arising from design control system covering raw material pro-
Expenditure Identification of Business units identify quality risks and opportunities by analyzing the macro environment, industry land-
or manufacturing defects may re- Short term High curement through to finished product de-
increased quality risks and scape, and internal conditions, while considering the requirements of stakeholders such as customers,
sult in product recalls. livery, and maintain product liability insur-
opportunities suppliers, and partners.
ance to mitigate potential financial risks.
Inadequate service processes or in- We strengthen professional training for Quality risk and
We assess identified risks based on severity and likelihood in accordance with evaluation criteria, deter-
sufficient staff capabilities may lead service personnel and establish regular opportunity
Revenue (de- Short term mine risk coefficients, and classify risk levels (Level I: low risk; Level II: moderate risk; Level III:high risk).
to poor customer experience, result- Medium customer experience surveys to contin- assessment
cline) Medium term
ing in complaints, reputational dam- uously improve service processes and
age, and customer attrition. standards.
Quality risk and
We apply appropriate control measures based on risk levels, including risk elimination, avoidance, miti-
opportunity
gation, or acceptance.
control
Opportunity Financial Impact Impact
Mitigation Measures
Description Impact Duration Level
Quality risk and
We conduct regular reviews of risk and opportunity management to verify the effectiveness of control
By delivering high-quality prod-
opportunity
measures.
ucts and services, the Company We have established ongoing customer
review
enhances customer satisfaction Revenue Medium term satisfaction surveys and incentive mech-
Medium
and loyalty, driving repeat pur- increased Long term anisms to dynamically refine product and
chases and positive word-of- service quality standards.
mouth.
Establishment of a Quality Management System
Leveraging our technological We increase investment in core technology
strengths, we develop differentiat- R&D to create differentiated high-quality
Revenue Medium term
ed high-quality products, gain early Medium products and enhance market recogni- The Company’s product quality management measures cover the entire product lifecycle. The Company’s quality management system is
increased Long-term
market positioning, and achieve both tion of product quality advantages through aligned with the ISO 9001 standard, strengthening a three-tier framework of “quality manual, procedural documents, and management
product and brand premiums. brand communication. standards”, and continuously improving system performance. In 2025, the Company successfully passed the quality management system
surveillance audit, confirming compliance with the ISO 9001:2015 international standard.
Impact, risk, and opportunity management
Product quality management and improvement
The Company adopts advanced quality management tools and control methods, conducts quality benchmarking and QC improvement pro-
jects, and establishes a collaborative management mechanism characterized by “user demand-oriented, business unit-centered, headquar-
ters-supervised, and supported by market regulation authorities”, thereby promoting continuous improvement in product and service quality.
The quality management department, together with product line teams, relies on systems such as the “Quality Capability Evaluation Man-
agement Standard” to focus on system development, standard upgrades, issue remediation, tool application, and capability enhancement. We Quality Management System Certification
have established a PDCA closed-loop improvement mechanism to systematically advance end-product quality.
Advancing digital quality management A total of 97 quality improvement achievements were recognized as national-, ministerial-, provincial-, or
municipal-level excellence projects. The Company was also awarded the title of “Outstanding Enterprise for
Quality Management Group Activities in Sichuan Province” jointly by the Sichuan Provincial Quality Association
We are advancing the development of a digital quality management platform, leveraging digital
and the Sichuan Provincial Federation of Trade Unions.
and AI technologies, including image and voice recognition and system integration, to capture
lifecycle quality data across product design, incoming inspection, and production processes.
In 2025, we implemented more than 600 quality improvement initiatives, increasing the overall quality perfor-
By integrating quality tools and methodologies, we are building a digital quality platform that IQC inspection efficiency by over
enables efficient collaboration, precise analysis, intelligent early warning, and data-driven de-
cision-making based on reliable quality data. This platform empowers quality management
across R&D, supply chain, production processes, and market performance, systematically en- %
hancing overall quality assurance capabilities.In 2025, the Company established an IQC incom-
ing material quality data application management system centered on material quality, which The Company joined the China Association for Quality, the China Electronics Quality Management Asso-
has been applied in certain product lines, improving IQC inspection efficiency by over 30%. ciation, and the Sichuan Quality Association.
Strengthen the product recall management mechanism.
The Company has established and effectively operates a product recall management mechanism, adhering to principles of proactive recall,
legal compliance, closed-loop management, and consumer rights prioritization. We have formulated the “Defective Consumer Product Recall
Management Measures”, defining full-process requirements for information collection, defect assessment, plan formulation, recall imple-
Customer Service Rights Protection
mentation, and reporting, with strict execution. In 2025, the Company had no product recalls, no major negative product or service incidents,
and no material product quality and safety incidents. The Company adheres to a “customer-centric” service philosophy and fully implements the PDCA (Plan-Do-Check-Act) cycle. We have es-
tablished and implemented a standardized documentation system covering the entire service process, including the including the “Quality
Manual”, “Household Appliance Service Standard SOP”, “User Complaint Management Measures”. We have also set up a dedicated service
unit (Changhong Service Centers) to manage after-sales service, customer complaints, and customer rights.
Quality enhancement training
The Company has defined requirements for quality professionals at all levels, including education, training, knowledge, skills, competencies,
professional capabilities, and value contribution. We established qualification and grading standards for quality professionals and conduct Customer Complaint Management Mechanism
targeted training programs to strengthen the capabilities of our quality workforce.
The Company has established the “Customer Complaint Management Measures” and “Product Return and Exchange Procedures”. These
policies define complaint categories, responsibility allocation, and standardized handling procedures.
Product quality certification management
In 2025, the Company conducted mandatory testing and auditing for household appliances and component products listed in the China Com-
pulsory Certification (CCC) catalogue, obtained CCC certification, and was awarded the corresponding CCC certificates. Among them, 381 air We have established a multi-channel complaint collection
conditioner models passed CCC certification. system, integrating call centers, online platforms, and public We respond promptly to collected complaints and con-
opinion monitoring to enable rapid aggregation, classification, duct tiered assessments based on issue type and cus-
routing, and end-to-end tracking of customer feedback. tomer needs.
Quality improvement outcomes 01 Complaint information collection 02 Complaint assessment
In 2025
The Company’s core products, including LCD TVs and room air conditioners, all passed product quality inspec- the Company achieved a
tions conducted by national and local market regulation authorities We continuously feed complaint anal- Based on assessment results, we provide tai-
% customer ysis results into product and service lored solutions such as repair, replacement,
improvement processes to drive sys- or compensation, with particular attention to
complaint resolution rate. tematic optimization. emotional and personalized customer needs.
Enhance after-sales service Indicators Unit 2023 2024 2025
After-Sales Warranty Services After-sales service channels Customer satisfaction rate % 99.20 99.11 99.37
We publish “Three Guarantees” policies and service National unified service hotline: 4008111666 / 4006111666; Customer complaint rate % 0.19 0.19 0.15
procedures on the Company’s official website, where
With over 4,000 service outlets and more than 15,000 Customer Complaint Resolution Rate % 100 100 100
users can access warranty information.
certified service engineers, we provide 24/7 service re-
We have established a tiered response and quality sponse nationwide.
traceability system for repair timelines and parts re-
Official WeChat account “Changhong Meiling Service”
placement, supported by intelligent customer service
to handle repair requests. Product accessibility
The Group is committed to removing barriers related to geography and technology by optimizing product portfolios, expanding sales channels,
After-sales logistics services After-sales training and certification and enhancing service quality, enabling products to reach consumers and delivering accessible smart living experiences.
Changhong Minsheng Logistics, leveraging a digital logis-
We strictly control service entry standards and provide
tics platform, utilizes Internet of Things (IoT) technology
ongoing training and certification for service engineers. Product channel accessibility
to achieve full-process visualized management of trans-
portation and warehousing, effectively reducing logistics
losses and enhancing quality stability.
We continuously expand and enhance channel coverage by adding traditional retail outlets and Changhong Meiling specialty stores, in-
In the area of transportation safety, Changhong Minsheng tegrating operator resources, developing O2O co-branded stores, and expanding across e-commerce platforms, including marketplace,
applies a four-dimensional video surveillance system live-streaming, social commerce, and membership-based channels. We also extend B2G and enterprise integration partnerships, es-
Digital After-sales Management
combined with AI-based behavior recognition technology tablish community-based direct sales experience stores, and expand services in county, township, and rural markets to improve product
to provide real-time alerts on dangerous driving behav- accessibility.
iors, ensuring dual protection for personnel and goods.
We digitally manage after-sales service processes, us-
An intelligent dispatching system has been established ing service applications to track service milestones in
based on the BeiDou/GPS data cloud platform to dynami- real time and ensure standardized operations.
cally monitor route deviation risks and implement manu-
Product design accessibility
al intervention when necessary. The warehousing process
is regulated through real-time monitoring of RDC storage
areas, standardizing the storage and handling operation The Company’s subsidiary Hongmofang focuses on the needs of
procedures of goods. users across different age groups and segments, building a healthy,
compliant, and diverse large-screen content ecosystem:
We optimize product interaction design for elderly users and intro-
duce a "Senior Mode" that simplifies interfaces and enhances voice
Customer Satisfaction Surveys assistance, lowering barriers to use and enabling seniors to easily
enjoy the convenience of smart technology.
We launch a dedicated "Children Mode" for younger users, filtering
inappropriate content and applying scientifically designed screen-
We have established multiple management policies, including the “Customer Satis-
time limits and age-based content recommendations to support
faction Evaluation Control Procedure”, “Installation and Maintenance Service Quality
their healthy development.
Inspection Measures”, and “Customer Satisfaction Survey Management Measures”.
We conduct regular spot checks, post-service follow-ups, periodic satisfaction sur- The Company’s Smart Health subsidiary showcased over 20 smart
veys, and on-site visits to continuously capture customer feedback and implement elderly care products at the 6th Sichuan International Elderly Care
internal improvements, ensuring sustained customer satisfaction. Services and Industry Expo, including digital hearing aids, non-contact
vital signs monitors, smart health watches, and wearable ECG devices,
In 2025, the Company conducted customer satisfaction surveys, achieving a satisfac-
tion rate of 99.37%, representing a year-on-year improvement.
supporting health management and safety protection while precisely
addressing the needs of elderly users.
Responsible marketing
Indicators and Goals
The Company strictly complies with the Law on the Protection of Consumer Rights and Interests of the People’s Republic of China, the Ad-
vertising Law of the People’s Republic of China, the Anti-Unfair Competition Law of the People’s Republic of China, and other applicable laws,
In 2026, the Company will center on the ISO 9001 quality management system to strengthen end-to-end quality capabilities, enhance refined
regulations, and industry standards. The Company has formulated management policies for brand promotion and media communication,
risk management, and advance digital enablement, ensuring compliant operations, safeguarding customer rights, and reinforcing brand trust
including the Administrative Measures for News and Public Opinion Release and Communication, the Administrative Measures for Self-op-
and market competitiveness.
erated New Media, the Administrative Measures for Online Brand Image Carriers, the Bottom-line List for External Communication, and the
Administrative Measures for External Spokespersons, thereby shaping a credible brand image. The Company has established a “Brand and
Quality Management Committee” to oversee brand marketing, brand value, brand communication, and related activities.
Indicators Targets for 2025 Progress During the Reporting Period
Complaint resolution rate Reached 100%. Completed
Responsible marketing commitment
The Company commits to strict review in all marketing and promotional activities, avoiding any exaggerated, false, or misleading statements, Product recall incidents No product recall incidents occurred. Completed
and upholding responsible marketing practices.
Major product quality and safety No major product quality and safety inci-
Completed
incidents dents occurred.
Standardized marketing management process
For general product marketing For specific IP products
we strictly comply with media placement requirements and we implement strict responsible marketing control mecha-
require marketing personnel to adhere to responsible mar- nisms, ensuring all promotion and marketing activities re- Strengthening Data Privacy Management
keting principles, avoiding false or exaggerated claims and spect and protect IP in accordance with established policies.
ensuring users can trust our products and services.
The Company strictly complies with national laws and regulations on cybersecurity, data security, and personal information
protection. The Company has established a data privacy management system and, through full-process risk prevention and
control, ongoing capability building, and adherence to technology ethics, has built a robust data security defense and safe-
guarded user privacy rights, providing solid digital security support for stable operations and sustainable development.
Product marketing education
We provide customers with product and service education through multiple channels. Upholding Technology Ethics
The Company places great importance on technology ethics management. In scenarios such as user research and artificial intelligence, eth-
For supplier clients For channel partners ical requirements are embedded into project processes. The Company has issued the Provisions on the Deployment and Application of Large
AI Models and other systems, promoting closed-loop security management of Large-scale AI models across dimensions including training
we promote products through government-enterprise part- we leverage our regional offices and product center training data security, privacy protection, algorithm security, content compliance, ethical and moral safety, and system security. Through technical
nerships, cross-industry collaborations, and supplier con- managers to deliver regular product training. measures such as enhancing model robustness, adversarial defense, security validation, and interpretability research, the Company im-
ferences, while clearly communicating key products, service proves the safety and reliability of AI systems.
benefits, and promotional offerings during the sales process.
At the same time, the Company promotes the establishment of a Technology Ethics (Review) Committee to conduct regular inspections,
evaluations, and handling of the implementation of technology ethics systems, and to carry out regular training and awareness programs on
technology ethics.
Strengthening Data Security Information Security Management Measures
The Company regularly invites internal and external information security experts to conduct training and aware-
In accordance with national laws and regulations and in light of its business practices, the
Information Security ness programs for employees at all levels, covering laws and regulations, management systems, and security
Company has formulated the Management Rules for the Protection of Trade Secrets and
Training awareness. The Company has established a dedicated information security training program covering all em-
implements classification-based and tiered management based on data security attributes.
ployees and delivers training on information security and privacy protection through diversified formats.
The Company deeply integrates data security requirements into its core business processes.
No
The Company has established a full-process emergency response mechanism and regularly conducts cybersecurity
By conducting regular data security risk assessments, it systematically advances data secu- Information Security
data security incidents emergency drills. During the reporting period, the Company handled more than 30 security incidents, none of which
rity risk governance and strengthens its data security defenses. Emergency Response
occurred during affected production and operations, effectively preventing the occurrence of major cybersecurity incidents.
The Company adopts encrypted storage for sensitive information such as user account passwords, and applies mask-
Information Encryption
ing of sensitive fields to user mobile phone numbers, ensuring compliant use of information while safeguarding user
and De-identification
privacy.
Supplier Information The Company extends its information security management requirements to suppliers by signing confidentiality
Security Management agreements and conducting on-site information security reviews.
Case: National Pilot Program for Innovative Development of Trusted Data Space for Enterprises
The Company has established a unified data backup system, implementing tiered backup management for informa-
Critical Information
In response to challenges such as the difficulty of forming a closed-loop for data value across the supply chain, high barriers to collabo- tion systems and data. The Company has also set up a disaster recovery data center to provide dual backup for both
Backup
rative data development between front-end and back-end systems, and difficulties in managing data security across internal and external software and hardware of critical information systems.
collaboration, the Company plans to build and operate an intelligent manufacturing supply chain collaborative trusted data space. This
The Company has established a normalized information security review mechanism, conducting quarterly security
initiative aims to support compliant and efficient circulation and utilization of supply chain data, enabling efficient business collaboration Information Security
testing of information systems, organizing annual internal information security reviews, and engaging third-party pro-
and innovation in ecosystem applications. Review
fessional institutions to carry out information security risk assessments.
Safeguarding Information Security Customer Privacy Protection
The Company strictly complies with the Cybersecurity Law of the People’s Republic of China, the Data During the reporting period The Company adheres to the principles of “lawfulness and compliance, user authorization, and minimum During the reporting period
Security Law of the People’s Republic of China, the Personal Information Protection Law (PIPL) of the necessity”, and has established a customer privacy protection framework centered on the Administrative
People’s Republic of China, and other relevant laws and regulations. The Company has established an in- Measures for Cybersecurity and User Privacy Protection and the Administrative Measures for User Infor-
formation security governance structure supervised by senior management, led by the digital transforma-
tion department, and collaboratively implemented by various business units. The Company continuously
No information security
mation Security of Service Information Systems. This framework covers full lifecycle management of user
data. At the same time, the Company has established a multi-department collaborative governance struc-
No user information leak-
risk incidents occurred with- age incidents occurred
advances the development and normalized operation of its information security management system. ture, supported by technical traceability measures and a three-tier emergency response mechanism, to
in the Company
effectively protect customer privacy, fulfill compliance obligations, and strengthen the trust foundation of
During the reporting period, the Company successfully passed the ISO/IEC 27001 Information Securi-
the digital service ecosystem.
ty Management System recertification and obtained the Level III certificate under China’s Multi-Level
Protection Scheme (MLPS).
Data Security and Privacy Protection
Information Security Management Measures The Company has established an end-to-end security framework of “encryption–authentication–protection–control”. Through multiple measures—
including data encryption technologies, multi-factor identity authentication and authorization, secure network transmission protocols, encrypted
Establish a comprehensive information security management system and organizational structure, clarify storage solutions, server firewall deployment, and refined access control strategies—it achieves full lifecycle security management of users’ per-
cybersecurity management responsibilities at all levels, and strictly implement the requirements of the sonal information. In 2025, the Company obtained the Level III certification under China’s Multi-Level Protection Scheme (MLPS) for cybersecurity.
Information Security Multi-Level Protection Scheme (MLPS) for cybersecurity;
Tiered Governance
Build a defense-in-depth information security architecture, implement classification-based and tiered
management of industrial data, and continuously enhance information security governance capabilities. User Privacy Policy
Steadily advance comprehensive cybersecurity certification, including ISO/IEC 27001 Information Security Through its Honglingjin system, the Company released the Changhong User Privacy Policy, which provides users with a detailed explanation of the pur-
Information Security Management System certification and MLPS certification; pose, scope, methods, and protection measures for information collection. We cover all aspects of personal information collection, use, and protection,
Certification Regularly conduct data security risk assessments, while completing cybersecurity product certification and clearly informs users of data processing rules and their rights, and fully safeguards users’ right to information. In addition, the Company has issued the
professional cybersecurity personnel certification. Changhong Children’s Personal Information Protection Rules and Guardian Notice, providing comprehensive protection for children’s personal information.
People-oriented
Changhong
Safeguarding Employee Growth
Sichuan Changhong protects the legitimate rights and
interests of employees, empowers their development,
conveys corporate care, and achieves mutual growth and
shared success between the Company and its employees,
demonstrating the responsibility of a state-owned
enterprise in talent development.
Improving Fair Employment Mechanisms 101
Safeguarding Employee Rights and Well-being 104
Empowering Comprehensive Employee Development 107
Implementing Occupational Health and Safety 113
Respond to the United Nations Sustainable
Development Goals
Improving Fair Employment Mechanisms Employee Regional Distribution (2023–2025)
Number of Chinese employees Number of foreign employees
Sichuan Changhong upholds the bottom line of fair employment by integrating equal employment and diversity management throughout
(Person) (Person)
the entire talent management process, demonstrating inclusiveness and a strong sense of responsibility in talent governance. The Com-
pany has established a dedicated human resources management department responsible for employee management.
Equal Employment
Sichuan Changhong has systematically established a fair employment system. We strictly comply with national and local labor laws
and regulations, including the Civil Code of the People’s Republic of China, the Labor Law of the People’s Republic of China, the Labor
Contract Law of the People’s Republic of China, the Law of the People’s Republic of China on Promotion of Employment, and the Pro-
visions on the Prohibition of Child Labor, and has formulated internal policies such as the Administrative Measures for Cadres and the Fairness and Anti-discrimination
Recruitment Management Measures to implement equal employment.
The Company strictly implements institutional requirements such as the Employment Management Guidelines and the Detailed Rules for
Disclosure of Employment Information. We prohibit all forms of employment discrimination based on nationality, gender, age, race, religion,
Employee Structure pregnancy, disability, or other factors. We ensure that all employees enjoy equal opportunities in employment, compensation and benefits,
and career development, fostering a talent environment characterized by openness, fairness, merit-based competition, and mobility.
Employee Headcount Statistics (2023–2025)
Total number of employees Total number of male employees Total number of female employees
Prevention of Child Labor and Forced Labor
(Person) (Person) (Person)
lated rules, and has formulated the Employment Management Measures, which clearly stipulate that only individuals aged 18 and above may
enter into labor contracts with the Company. We strictly comply with national working hour standards and firmly prohibits any form of child
labor or forced labor. At the same time, the Company has established the Administrative Measures for Employee Leave to ensure reasonable
working hours and employees’ rights to rest and leave. During the reporting period, there were no incidents of discrimination, child labor, or
forced labor.
Employee Age Distribution (2023–2025)
Employees aged 29 and below Employees aged 30–39 Employees aged
(Person) (Person) (Person) Diversity Management
Overseas Employee Management
To effectively implement its internationalization strategy and accurate-
has established a full-chain overseas talent management system cov- Localization rate of overseas employees
Employees aged Employees aged 55 and above ering attraction, development, utilization, and retention. The Company (%)
(Person) (Person)
has built a market-oriented and differentiated overseas compensation
system, and a talent development system integrating “theoretical em-
powerment + practical experience”, thereby driving high-quality and
sustainable development of overseas business through enhanced
Global talent management.
Female Employee Management Management of Employees in Hardship
The Company attaches great importance to the man- The Company has further improved its assistance and relief mechanisms for employees in hardship by establishing support ledgers and
Proportion of female managers
agement of female employees. Guided by principles information platforms. Leveraging the “Hongkang Medical Relief System”, we provided over RMB 100,000 in assistance funds to employees
(%)
of equality, respect, and care, the Company has built suffering from major illnesses and those facing family difficulties. The Company completed annual declarations for employees in hardship and
a diversified development platform.
Implementation of Equal Pay for Equal Work
Democratic Management and Communication
The Company strictly enforces the principle of equal pay for equal work, eliminating gender-based pay discrimination at the institutional
level and ensuring that female employees enjoy fully equal rights with male employees in compensation and performance incentives.
The Company integrates democratic management deeply into its business operations, continuously advancing the development of a mul-
ti-level employee representative congress system and promoting the effective implementation of collective consultation mechanisms.
Safeguarding Maternity and Work-Life Balance
Flexible working arrangements, including flexible working hours and remote work, are provided for pregnant employees; Employees’ Representative Congress
Nursing rooms are established in office areas, equipped with constant-temperature refrigerators, comfortable nursing chairs, and baby
The Company adheres to democratic management of enterprise affairs with transparency, with the Employees’ Representative Con-
care tables, providing private and convenient spaces for breastfeeding employees.
gress system as its fundamental form. We implement democratic election, democratic consultation, democratic decision-making,
democratic management, and democratic supervision in accordance with the law. This approach fully mobilizes employees’ enthusi-
asm, initiative, and creativity, and fosters harmonious labor relations.
Prevention of Workplace Harassment
In 2025, the Company convened the Fourth Session of the Fifth Employees’ Representative Congress, enabling employee representa-
The Company strictly prohibits all forms of workplace harassment and handles such incidents in accordance with laws and regulations, tives to gain a comprehensive understanding of its annual operating performance, business plans, and reform initiatives. During the
respecting and protecting female employees. reporting period, to further broaden channels for democratic management, the Company held five joint meetings of heads of employee
representative groups. These meetings reviewed important documents directly affecting employees’ interests, including the 2025 Col-
lective Wage Agreement and revisions to the Enterprise Annuity Plan, thereby promoting co-construction and sharing between employ-
ees and the Company and enhancing employees’ sense of gain and satisfaction.
Management of Special Employee Groups
Upholding principles of respect and inclusiveness, the Company creates a fair, equitable, and supportive working environment for special
Enriching Democratic Engagement
employee groups, enabling them to fully realize their talents and achieve personal value.
The Company has upgraded employee service facilities and platforms. In 2025, we completed the construction of an employee activity room at
the Changhong Trade Center. To date, the Company has established four “Employee Homes”, four employee activity centers, seven psycholog-
ical support stations, and nine “mommy & baby rooms”. These facilities have significantly enriched employees’ cultural and recreational life,
and the achievements in facility development have received high recognition from municipal, provincial, and national trade unions.
Case: Changhong Air Conditioner’s Practice of Equal Employment
Changhong Air Conditioner strictly implements equal employment and diversity and inclusion principles, effectively safeguarding the 2025，To date
employment rights of persons with disabilities and other special groups. As of the end of the reporting period, Changhong Air Conditioner
and its subsidiaries employed 55 persons with disabilities. The Company provides customized job positions based on employees’ physical
conditions, ensures full payment of social insurance in accordance with national regulations, and guarantees comprehensive coverage in
medical care, pension, unemployment, work injury, and maternity benefits. We also provide financial assistance and organize dedicated
communication sessions to explain company policies, ensuring comprehensive protection of rights and delivering human-centered care
Employee Homes employee activity centers psychological support stations “nursing rooms”
for special employee groups.
Labor Dispute Mediation Mechanism Benefits System
The Company continuously improves its labor dispute mediation mechanism to A “tiered management” compensation and benefits system has been established. Subsidiaries formulate moderately differentiated
build harmonious labor relations. Leveraging mediation committees and mediator compensation and benefits policies based on industry characteristics and regional differences.
teams at all organizational levels, the Company conducts labor dispute mediation in
The Company assisted in handling more
accordance with the principles of “prevention first, mediation as priority, and coordi- Employee income consists of base salary for the position + performance-based variable pay + benefits and allowances.
nated linkage across levels”. In 2025, the Company assisted in handling more than
than cases related to petitions,
assessment cycles, evaluation standards, and reward and penalty criteria, and is distributed after performance evaluations.
rights protection, and labor disputes.
Performance and Incentive System
Remuneration and Benefits The Company has improved its employee welfare and security system, achieving 100% coverage of five. The one housing fund, providing
employees with solid social security protection;
The Company has built up its compensation and benefits system centered on “pay for position, pay for capability, and pay for perfor-
A fair and equitable compensation incentive mechanism has been established, closely linking performance outcomes with remunera-
mance”. The Company has formulated the Compensation Management Measures and the Administrative Measures for Benefits and Al-
tion to fully stimulate employees’ motivation and creativity and to build stable and harmonious labor relations.
lowances, providing employees with competitive remuneration packages, including salaries, settling-in allowances, housing subsidies,
and meal allowances. Relying on fair and transparent mechanisms, it safeguards employees’ income rights and effectively enhances
their sense of gain.
Performance Appeal
The Company has formulated the Employee Performance Management Measures, which clearly stipulate that employees who have
objections to the performance evaluation process or results may communicate with their direct supervisors or file an appeal to a higher
level. The appeal mechanism is as follows:
Free Commuter
medical shuttle
Employees of Headquarters Functional Departments
Employee Holiday greetings Departments provide feedback on evaluation results to employees and conduct one-on-one performance communication.
and benefits The direct supervisor and the employee jointly complete the Performance Interview and Improvement Plan Form.
福利
Paid annual Academic If employees have objections to evaluation results, they may submit a performance appeal to the Company’s human re-
leave advancement sources department, which is responsible for accepting and handling such appeals. The appeal process is strictly docu-
mented, and a Performance Evaluation Appeal Form is completed.
Cultural,
sports and
recreational
Employees of Subsidiaries
Subsidiaries have established their own performance appeal mechanisms. Employees of subsidiaries may file appeals through
the relevant mechanisms with the subsidiary’s human resources management department or the Company’s human resources
department. Relevant departments handle appeal matters in accordance with established policies and procedures.
Overview of
Employee
Benefits
Empowering Comprehensive Employee Development Tiered and Differentiated Training Mechanism
The Company designs tailored training programs for different employee groups, including management personnel, key professional
Sichuan Changhong has built a full-cycle career development ecosystem. Through the integration of hierarchical training system and talent, highly skilled talent, and new hires. Training content covers leadership training, management and control training, onboarding
dual-track promotion pathways, it aligns with employees’ capability advancement needs, enabling both individual value enhancement and training for new hires, skills training, and qualification certification.
the achievement of organizational strategic objectives.
At the corporate
Career Development level
Individual devel-
Collective onboarding training for new em-
opment & learning
ployees,professional capability building and
The Company has established a “unified system with tiered management” rank and position system, comprising six major job catego-
skill training, specialtraining for overseas Training on promotion, professional
ries with corresponding ranks. The Company has created dual-track career development pathways for both professional and manage-
talents, training for reserve cadres,and competence, academic improvement,
rial advancement. Annual rank evaluations cover all employees, with promotions based on capability and contribution and accompanied
training for managerial cadres. etc.
by corresponding salary adjustments, thereby empowering employee growth and value realization.
Training Categories
At the sub-
sidiary level
“Six Job Categories” Rank Setting New employee onboarding, profes-
sional empowerment andskill train-
Based on job complexity across categories, 1–7 rank lev- ing, training for reserve cadres, train-
Management (M), R&D (D), Engineering and Technical (T),
els are defined, with the production category extending ing formanagement cadres, among
Functional (F), Marketing (S), and Production (P).
up to Level 8. others.
Professional Development Path Management Development Path
Case: “Spark Program” Empowering Campus Recruitment New Hires
The Company provides a 6–7 level pro- A four-level promotion pathway has been
motion pathway for technical profession- designed to support employees’ transi-
als across RD, engineering technology, tion from self-management to managing Sichuan Changhong has developed the “Spark Program”, a dedicated onboarding training initiative for campus recruits, helping grad-
marketing, functions, and production. others and ultimately managing teams; uates understand the Company, complete role transitions, and enhance professional competencies. The program lasts six months and
consists of two phases: centralized Group-level training and employer-unit-led training. The former includes five core modules, while
A multi-disciplinary qualification frame- A reserve management talent pool has the latter combines internal training with a mentorship system over five months. This program injects vitality into the Company’s talent
work has been established, with clearly been established, covering all manage- pipeline and strengthens the foundation for long-term development.
defined requirements across profes- ment levels, with systematic develop-
sional knowledge, skills, and key com- ment in leadership, management capa-
petencies at different levels, and is dy- bilities, and business perspective.
namically updated in alignment with the
Company’s annual strategy;
Employee Training
The Company has developed a hierarchical, categorized, targeted empowerment training system, building a full-lifecycle career train-
ing ecosystem. We adopt diversified training models integrating online and offline approaches, customize courses for different employ-
ee groups, and focus on the development of key talent. Training empowerment is leveraged to translate learning outcomes into drivers Spark Program Opening Ceremony Spark Program Corporate Culture Class
of enterprise development.
Case: Changhong “Master Classroom” Cultivating Skilled Talent During the reporting period, provided assistance to 27 employees in hardship;
Conducted more than 6,000 visits to model workers, craftsmen, and frontline employee representatives;
In 2025, Sichuan Changhong organized six sessions of “Master Classroom” skills training, focusing on themes such as lean smart manu- Organized centralized consolation activities during major holidays such as New Year’s Day and Spring Festival, covering more
facturing, with a total of 337 participants trained. The program innovatively integrates online and offline formats and combines theoretical than 30,930 employees and retirees under management platforms;
instruction with practical application, promoting the effective transformation of skills into practice. Participants’ learning outcomes have
Leveraged the “Hongkang Medical Relief System” to provide over RMB 100,000 in financial assistance to employees with major
contributed to improved production efficiency and quality, while also establishing an internal branded training program and fostering a
illnesses and those facing family difficulties.
virtuous cycle of skills inheritance.
Master Classroom
Employee Consolation Activities
Employee Care
Employee Engagement Activities
The Company adheres to a people-oriented approach, addressing diverse employee needs by building a comprehensive, multi-level
care system. We provide holistic support covering both work and life, as well as material and psychological well-being, thereby fostering The Company strives to balance employees’ work and life by regularly organizing festive celebrations and sports club competitions, enhancing
strong synergy between the Company and its employees. employees’ sense of happiness and belonging.
Assistance for Employees in Hardship
The Company continues to deepen the “Doing Practical Things for Employees” initiative, constantly improving its employee service system and
enhancing the precision and effectiveness of assistance efforts.
Maintains a normalized care Continues themed care initiatives Pays particular attention to em-
mechanism, providing year-round such as “Warmth in Spring, Coolness ployees working in toxic, hazard-
support and visits to employees in Summer, Educational Support in ous and strenuous posts;
suffering from major illnesses, Autumn, and Care in Winter”;
work-related injuries, or hospital-
ization;
Lantern Festival Activities Changhong Shuttlecock Club
Care for Female Employees
The Company consistently prioritizes support for women’s career development and is committed to building an equal, inclusive, and empow-
ering workplace environment, providing diversified development platforms for female employees.
Selected outstanding female employees of the year to encourage innovation and excellence in their roles and showcase the spirit
of women in the new era;
Changhong Badminton Club Changhong Table Tennis Club Provided support visits to 10 female employees in hardship, including female migrant workers;
Completed care and assistance programs for four provincially recognized female employees in hardship;
Strictly implemented the special collective agreement on the protection of female employees’ rights, ensuring legal rights related
to the “four periods” (pregnancy, maternity, breastfeeding, and recovery) and participation in decision-making.
To enrich the cultural life of female employees, the Company organized activities such as the “Rose Book Club” reading initiative
and “Happy Children’s Day” parent-child events, showcasing the talents and vitality of female employees.
“Hong Family Values” Pavilion Visit Activity
“Parents of Changhong Employees Visiting Changhong” Appreci- Changhong Carnival Event
ation Initiative Female Employee Care Activities
Focus on Employee Mental Health
Employee Satisfaction Surveys
The Company values employees’ psychological well-being and actively advances the development of a psychological care system for employ-
ees.
The Company regards employee satisfaction as a key indicator of corporate development. Through regular employee satisfaction surveys, it
actively listens to employees’ voices and accurately identifies their needs and expectations. Based on survey results, the Company continu-
ously optimizes management measures, improves its benefits system, and enhances the working environment, promoting the joint growth
of the Company and its employees.
Continued development of the psychological care system, conducting seven in-person counseling sessions during the year,
serving 183 employees (including 129 on-site consultations and 54 online consultations);
Organized two themed lectures and training sessions on mental health, with more than 110 frontline team leaders participating Changhong Jiahua
in training on “Emotional Stress Management and Eye Health Knowledge”;
Conducted online knowledge competitions and sleep disorder psychological assessments during the “5·25 Mental Health Day” While pursuing improvements in both efficiency and effectiveness and advancing cost reduction and efficiency enhancement, the
activities; Company strengthens the HR role as an “employee partner”, maintaining employee satisfaction above 95%. Through activities
such as stress relief and emotional regulation, the Company helps employees reduce pressure, maintain health, and improve work
Psychological care services reached more than 3,000 employees throughout the year.
efficiency.
Employee Turnover Management Strategy
The Company recognizes the importance of employee turnover management and focuses on analyzing the underlying causes of turnover,
Risk Financial Impact Impact
including compensation and benefits, career development, and working environment. By implementing targeted strategies and optimizing Mitigation Measures
Description Impact Duration Level
retention mechanisms, the Company aims to reduce employee turnover, maintain team stability, and build a solid talent foundation for sus-
tainable and stable development. In 2025, the Company’s employee turnover rate was 4%. A scientifically established dual prevention
mechanism is implemented to strengthen
Revenue (de-
risk control and prevent accidents
cline) Short term
Safety incidents damaged the
High Increased investment in work safety and
brand’s reputation Assets Long term strict control of operational processes
Implementing Occupational Health and Safety Depreciation
Improvement of emergency response plans
to enhance emergency handling capabilities
Sichuan Changhong regards occupational health and safety (OHS) as a core pillar of sustainable development. The Company has estab-
Strict source control with full implementation of
lished a comprehensive governance system covering strategic layout, system construction, risk prevention and control, and performance
the “three simultaneous” system for construc-
assessment. Guided by international standards, the Company continuously enhances its OHS performance through systematic certifica-
tion projects;
tion and dynamic management, demonstrating the responsibility of an industry-leading enterprise in safeguarding employee rights and Workshops such as those engaged in
ensuring production safety. electronic manufacturing may involve Strict implementation of regular testing of occu-
noise and electromagnetic radiation, Short term pational disease hazard factors, identification of
Cost increased Medium
which, if exposed to over a long pe- Long term hazards, and adoption of engineering and tech-
riod, may affect employees’ hearing nical control measures
and nervous system health.
Regular occupational health examinations are
organized for employees exposed to hazards,
Occupational Health and Safety and health surveillance records are established
Governance Opportunity Financial Impact Impact
Mitigation Measures
Description Impact Duration Level
The Company complies with the Law on the Prevention and Control of Occupational Diseases of the People’s Republic of China and the Reg-
ulations on Occupational Health Management in the Workplace. The Company has formulated systems including the Responsibility System Revenue Employee health training and team-build-
Health management programs
for the Prevention and Control of Occupational Disease Hazards, the Occupational Hazard Warning and Notification System, the Occupational increased ing activities are conducted
are implemented, resulting in a Medium term
Hazard Project Reporting System, the Occupational Health Education and Training System, the Maintenance and Inspection System for Oc- Medium
decrease in employee sick leave Costs Long term Introduce advanced employee manage-
cupational Protection Facilities, and the Management System for Occupational Protective Equipment. A three-tier occupational health and
rates decreased ment philosophy and techniques
safety management structure has been established to effectively carry out occupational supervision and management. The Company’s parent
company has joined the Sichuan Occupational Health and Safety Association.
Impact, Opportunities, and Risk Management
Decision-Makers Composed of senior management and heads of various departments, it provides overall
Occupational Health Management leadership, decision-making, and oversight for the Company’s occupational health and
Development of the Occupational Health and Safety System
Committee safety work.
Management Level
The Company continuously improves its occupational health and safety
Office of the Occupational Health
system. During the reporting period, the Company obtained Occupational
Management Committee Responsible for the organization and coordination, supervision and inspection, and infor-
Health and Safety Management System certification.
mation communication of the Occupational Health Management Committee.
(located within the Safety and Envi-
ronmental Protection Department)
Responsible for the implementation, inspection, rectification, and documentation of
Execution Level occupational health work.
Dedicated Occupational Health Information transmission and closed-loop supervision across all levels are achieved
Management Personnel through regular meetings, reporting systems, and inspection feedback mechanisms, en- Sichuan Changhong Occupational Health and
suring the effective operation of the occupational health and safety management system. Safety Management System Certification Certificate
Testing of Occupational Disease Hazard Factors Progress in Reporting
Indicators Targets for 2025
Period
In strict accordance with the Law on the Prevention and Control of Occupational Diseases of the People’s Republic of China, the Company
The number of work-related fatalities, the num-
has established a regular testing mechanism for occupational disease hazard factors. We conduct comprehensive inspections of the Com-
ber of occupational disease cases, and the inci- 0 Completed
pany (including Changhong China Smart Display and the Energy and Utilities Center) every three years through qualified third-party testing
dence rate of occupational diseases were
organizations.
For subsidiaries, regular testing of occupational disease hazard factors in workplaces is conducted. A total of 4,045 testing points were as- Occupational disease hazard factor detection rate 100% Completed
sessed, with a 100% compliance rate.
Occupational health surveillance compliance rate 100% Completed
Occupational Health Examinations
The Company conducts occupational health examinations in accordance with the law. For positions exposed to key occupational hazards—
including 1,637 employees exposed to chemical hazards, 694 to dust, 1,070 to noise, 403 to high temperatures, and 116 to radiation—risk
assessments, on-site testing, and health surveillance are conducted. Targeted measures are implemented based on the characteristics of
occupational hazards, including engineering controls, management measures, and personal protective measures.
Work Safety
During the reporting period, occupational health examinations were conducted for 9,302 employees in hazard-exposed positions, achieving
a 100% examination rate.
During the reporting period Work Safety Management System
The Company has established a comprehensive system of work safety management policies, including the Safety Production Supervision and
Management System, the Work Safety Performance Assessment Management System, and the Work Safety Meeting System. A Work Safety
occupational health examinations were conducted for achieving a % Committee, composed of senior management and department heads, is responsible for decision-making and supervision of work safety. An
employees in hazard-exposed positions examination rate. Office of the Work Safety Committee has been set up within the Safety and Environmental Protection Department to coordinate implementa-
tion and information communication. Dedicated work safety management personnel are assigned to carry out inspections, patrols, and risk
screening. In 2025, the company had a total of 20 units maintaining valid ISO 45001 system certification.
Work Safety Risk Management Mechanism
Occupational Health Training
The Company has established the Measures for the Graded Control of Work Safety Risks, forming a complete management system covering
identification, assessment, monitoring, and response.
The Company actively organizes occupational health training. During the reporting period, 94 occupational health practitioners and 45,648
on-the-job employees received occupational health training.
Using a normalized, company-wide participation approach, each unit carries out step-by-step, end-to-end
Risk risk identification in accordance with its plan, and conducts systematic screening based on standards such
Employee Consultation Identification as the Guidance Manual for the Identification and Prevention of Major Hazardous Factors in Industrial and
Trade Sectors.
The Company involves employees in the optimization of occupational health management and actively solicits their feedback. For example, in
the selection and upgrading of personal protective equipment, frontline employees are invited to conduct on-site trials and provide feedback
to ensure both effective protection and user comfort.
Risk Identified risks are assessed and graded using the LEC risk assessment method, and classified into four
Assessment levels: major, relatively major, general, and low risks.
Metrics and targets
The Company continues to improve its occupational health and safety management system, benchmarks against industry best practices to Differentiated control measures are adopted for risks of different levels. Major risks are directly controlled
Risk Manage-
optimize systems and processes, strengthens OHS training and awareness across all employees, prevents major and severe safety accidents, by the Company and are subject to dedicated emergency response plans, while lower-level risks are man-
ment and Control
reduces occupational health risks, safeguards employees’ physical and mental well-being, and creates a safe, healthy, and compliant working aged and controlled by workshops or teams.
environment.
A multi-level, normalized risk monitoring and inspection mechanism has been established. Differentiated in-
Risk spections are conducted based on management units such as the Company, platform departments, quasi-in-
Monitoring dependent accounting units, manufacturing plants, and teams. Technical measures, including online monitor-
ing and video surveillance, are comprehensively applied to continuously enhance risk monitoring capabilities.
All risk points are subject to dynamic management and regular annual review and assessment to ensure
Risk
the continued effectiveness of control measures. In addition, a “one enterprise, one file” record-keeping
Review
system has been established to enable the registration, updating, and reporting of risk information.
Investigation and Remediation of Work Safety Hazards Changhong Smart Display (China) Co., Ltd. carried out a fire emergency drill.
The Company has formulated the Hazard Identification and Rectification Management System and the “Dual Reporting” System for Hazard
Identification and Major Hazard Rectification, establishing a three-tier hazard identification mechanism at the Company, workshop, and team
levels, and promoting full employee participation through a combination of “hazard identification + reporting incentives”. Hazards are man-
aged on a graded basis and are classified, according to risk severity, into general hidden hazards and major hidden hazards. General hidden
hazards are required to be rectified promptly. For major hidden hazards, dedicated action plans are launched, with follow-up supervision by
the Safety and Environmental Protection Department. The Company strictly implements the rectification process featuring designated re-
sponsibility, measures, funding, timeline and contingency plan, so as to ensure full closed-loop management.
During the reporting period
The Company identified Rectified Employees proactively reported he Company also identified and
work safety hazards of them. ards, for which rewards totaling hazards.
RMB 171,000 were granted In 2025, Changhong Development organized four emergency evacuation drills, with more than 200 participants.
Safety Emergency Management Development of Safety Culture
The company has established the Emergency Rescue Plan and Emergency System Management Regulations. In 2025, the Company updated Upholding the principle of “safety first and life above all”, the Company carried out a series of themed activities, including Work Safety Month,
its Emergency Response Plan for Production Safety Accidents, specifying five key stages: “information reporting – response grading – emer- Fire Safety Publicity Month, and the Ankang Cup competition. During the year, the Company collected 1,750 rationalization proposals, verified
gency activation – organized response – post-incident handling”,During the reporting period, the company headquarters and more than 20 2,544 valid cases under the “Safety Whistleblower” initiative, organized an emergency skills competition with 34 teams competing on the
subsidiaries completed work safety emergency exercises. thereby establishing a closed-loop management process from early warning to same stage, and selected four group-level teams as “Ankang Demonstration Teams”, thereby systematically building a safety culture system
recovery. featuring full participation and practical orientation.
Safety Training
Case: Sichuan Changhong Mold and Plastic Tech Carried Out “Work Safety Month” Themed Activities
The Company has established the “Safety Training and Education Management System” and conducts systematic and targeted safety training
on a regular basis through diversified approaches that combine theory with practice and integrate online and offline formats. In doing so, it
In June 2025, Sichuan Changhong Mold and Plastic Tech closely aligned with the theme of Work Safety Month and vigorously carried
disseminates safety knowledge and skills, reinforces safety awareness among all employees, and enhances emergency response capabilities,
out activities to enhance the safety literacy of all employees. During the event, an online safety knowledge competition was held to
thereby building a solid line of defense for the Company’s steady operations and employees’ peace of mind at work. In 2025, the Company
strengthen employees’ theoretical foundation. A total of 1,235 employees actively participated, with 3,710 cumulative entries submitted.
ensured effective training coverage for both critical safety posts, with a 100% pass rate.
Each production unit also produced short safety videos based on job-specific risks, using innovative communication methods to convey
positive messages on safe development. Through competition-based learning and culture-based engagement, the event embedded
safety knowledge deeply among employees and translated it into practical action, significantly enhancing the risk prevention awareness
Specialized training for principal persons in charge: Training for safety management personnel:
and emergency response capabilities of all staff.
An online safety knowledge competition was conducted to strengthen employees’ theoretical foundation, with a
Training for occupational health management personnel: Training for hazardous chemicals warehouse administrators:
total of participants and cumulative participations.
Training for personnel supervising special operations: Safety training for new employees:
Training for on-the-job employees:
Work Safety Indicators and Targets
Progress in Reporting
Indicators Targets for 2025
Period
Implementation rate of the “three simultaneous” requirements
for safety, environmental protection, and occupational health in 100% Completed
new, modified, and expanded construction projects
Pre-job safety training pass rate for newly recruited, transferred,
and reinstated employees
Major work safety accidents 0 Completed
Work safety investment in 2025 - RMB 66.963 million
Responsible
Changhong
Empowering Synergistic Development
Sichuan Changhong remains committed to the mission
and responsibility of a state-owned enterprise. Guided
by the vision of “Responsible Changhong”, it continues
to deepen diversified social responsibility practices,
advance the responsible supply chain ecosystem, promote
industrial synergy and co-creation, support all-around rural
revitalization, and fulfill its social responsibilities through
coordinated action.
Deepening the Responsible Supply Chain Ecosystem 123
Supporting All-around Rural Revitalization 135
Actively Fulfilling Social Responsibilities 138
Respond to the United Nations Sustainable
Development Goals
Deepening the Responsible Supply Chain Ecosystem Company leadership
Platform management Business units
Sichuan Changhong strictly adheres to the principles of responsible procurement, actively promotes supplier diversification, and empow-
ers SME partners on an equal basis through fair and transparent procurement policies, resource support, and capability building. In doing
so, the Company builds an open, collaborative, mutually beneficial, and sustainable value network, and guides the industrial chain toward
...... Other Business
BU1 BU2 BU3
coordinated and responsible development. The Company has joined the Electronics Industry Supply Chain Branch of the China Federation
of Logistics & Purchasing and serves as a vice chair unit. Management Units
support
Procurement operations, quality, technology,
Supply Chain Manage- supplier management, etc.
ment Center
Service and
Resource Management supervision
Group Procurement Procurement Procurement Procurement
Team 1 Team 2 Team 3 Team 3
Supply Chain Governance Policy System
In accordance with the Code of Conduct of the electronics industry issued by the Responsible Business Alliance for the electronics industry,
the latest ISO 9001 Quality Management System standards, and laws and regulations including the Civil Code of the People’s Republic of Chi-
In January 2025, it received the 2024 Outstanding Case Award In October 2025, it was honored as a “China na, the Law of the People’s Republic of China on the Protection of Consumer Rights and Interests, the Product Quality Law of the People’s Re-
for the Electronics Industry Supply Chain from the Electron- Supply Chain ESG Management Demon- public of China, the Telecommunications Regulations of the People’s Republic of China, and the Anti-Unfair Competition Law of the People’s
ics Industry Supply Chain Branch of the China Federation of stration Enterprise”. Republic of China, the Company has established a core institutional system for full lifecycle supplier management featuring a “one-beam,
Logistics & Purchasing. four-pillar” structure, and has continued to revise and improve it.
In 2025, the Company revised a total of seven supplier management documents, optimized and improved management requirements for the
supplier blacklist, supplier admission, and supplier evaluation, and rebuilt one supplier evaluation model.
In July 2025, it was selected as an exemplary case for inclusion In December 2025,
in the 2025 Report on the Development of Digital and Intelli- it won the 2025 Annual Award for Industrial
gent Procurement and Supply Chains. Internet.
Demand and Sourcing and
Supply Chain Risk Planning Admission Supplier Tiered
Management Standards Management Standards
Procurement Resource Supplier Sourcing and
(Trial)
Demand and Planning Admission Manage-
Intermediary Management Standards Management Stand- ment Policy Administrative Measures for Supplier Au-
for Productive Materials ards dits for Productive Materials
Supply Chain Safety Administrative Measures for Supplier Administrative Measures for Performance
Basic Supplier
Admission for Productive Materials Evaluation of Productive Materials Suppliers
Management
Administrative Measures for Supplier Policies Administrative Measures for Supplier
Agreement Management Change Management
ODM/OEM Supplier Management Administrative Measures for Supplier
Organizational Structure for Supply Chain Management
Guidelines (Trial) Incentives and Cooperation and Blacklist Management
Exit Evaluation
The Company has established and further improved its supply chain management system. Senior management is responsible for the review,
Supplier Incentive Supplier Cooperation
approval, decision-making, and top-level design of supply chain management. Supply Chain Management Center of the Company takes the
and Exit Management and Evaluation Man-
lead in the development and supervision of the procurement and supply chain management system, and advances in an orderly manner the
Standards agement Standards
three-step working mechanism of “institution building, integration of digital and intelligent technologies, and industrial synergy”. It is respon-
sible for establishing and improving the supplier management system, promoting supplier management through the smart supply chain, and
guiding and supervising business units in carrying out supplier management.
Strategy 01 Supplier Admission
Impact Resource screening: In accordance with the Administrative Measures for Supplier Admission for Productive Materials, each unit
Risk Impact
Financial Impact Dura- Mitigation Measures formulates screening rules based on the characteristics of its industry, requiring potential suppliers to complete the Supplier Ques-
Descripti on Level
tion tionnaire and provide supporting materials covering multiple ESG dimensions, including quality, R&D, supply chain, environmental
protection, and social responsibility.
Short Establish a diversified supply mechanism and regu-
Production stagnation Revenue (decline)
term larly assess supply risks.
caused by supplier dis- Expenditure in- Medium
ruption Medium Establish safety stock and optimize inventory man-
creased
term agement strategies. Compliance review: Suppliers may not be recommended under six circumstances, including incomplete qualifications, products
that have not obtained mandatory certification, and failure to provide hazardous substance testing reports. Among these, environ-
Short Enter into strategic cooperation with suppliers and mental compliance, execution of quality agreements, and hazardous substances control systems are treated as veto items.
Fluctuation of raw ma- Expenditure term sign pricing agreements
Medium
terial price Increase Medium Enhance market price monitoring and adjust pro-
term curement strategies.
Agreement execution: Suppliers that pass the review are required, in accordance with the Administrative Measures for Supplier
Agreement Management, to sign relevant agreements, including the confidentiality agreement, integrity cooperation agreement,
safe operations agreement, and corporate social responsibility agreement, all of which include ESG-related provisions. By the end
Impact
Opportunity Impact of 2025 the Company archived nearly 55,000 agreements online. We signed corporate social responsibility agreements with nearly
Financial Impact Dura- Mitigation Measures
Description Level 2,000 suppliers, and the signing coverage rate among suppliers in key areas reached 98.2%.
tion
Medium
Implement supplier performance evaluations.
term
Supply chain optimization Costs decreased Medium Advance supply chain digital transformation for op-
Long
erational efficiency. Supplier audits: For suppliers identified through assessment as requiring an audit, the Company establishes an audit team to con-
term
duct on-site audits based on the RBA (Responsible Business Alliance Code of Conduct) and in accordance with the Administrative
Measures for Supplier Audits for Productive Materials. The audit scope includes ESG factors such as environmental protection
Medium Strengthen the publicity of supply chain risk man- (e.g., RoHS management system, chemical safety, equipment safety, and health), corporate social responsibility (e.g., child labor
Resilient supply chain term agement to demonstrate resilience. and underage workers, forced labor, discrimination and disciplinary practices, freedom of association and communication), and
attracting premium cli- Revenue increased Medium
Long Develop customized supply chain solutions for key business ethics (e.g., anti-corruption). Failure in any starred item results in an overall failure.
ents
term accounts.
Impact, Risk, and Opportunity Management Scope of performance Performance evaluation Performance evaluation
evaluation cycle factors
In accordance with the Supplier Coop- In accordance with the Administrative ESG-related indicators, including sup-
Supply Chain ESG Management
eration and Evaluation Management Measures for Performance Evaluation pliers’ environmental performance,
Standards, the Company carries out of Productive Materials Suppliers, the corporate social responsibility, and
The Company has established a full lifecycle ESG management mechanism covering supplier admission review, performance evaluation, supplier performance evaluations, in- Company conducts annual, quarterly, cybersecurity and information securi-
tiered management, supplier coaching, and exit. ESG factors such as social responsibility and environmental protection are incorporated into cluding risk assessments, change as- and monthly evaluations on a regular ty performance, are incorporated into
each stage. In 2025, the ESG control rate for supplier admission reached 100%. sessments, performance evaluations, basis. the evaluation.
audits, and blacklist evaluations.
Identification of supplier integrity risks
Based on supplier performance evaluation results, the Company implements tiered and categorized management:
The Company routinely identifies supplier integrity risks. In 2025, it controlled 42 risk points in procurement activities and added
two new control links relating to supplier admission and exit.
Grade A Grade B Grade C Grade D
Cooperation is strength- Continued coop- Procurement is restricted in volume. In Unqualified; the sup-
ened, including increas- eration may be principle, such suppliers may not serve plier’s qualification
Supplier integrity surveys
ing procurement share maintained. as primary suppliers under a bidding status is revoked.
and optimizing and ex- item. Supplier coaching should be pro- In 2025, the Company issued 568 questionnaires to suppliers, received 139 responses, collected 10 management suggestions, and
panding the scope of ap- vided when necessary to improve the assigned them to the relevant responsible units for handling.
plication. supplier’s overall capabilities.
Supplier integrity supervision and handling
During the
in 2025, Grade A and B suppliers accounted for more than 90% of the Company’s supplier base, and the number of
reporting
high-quality suppliers increased significantly.
period
The Company collected and publicly released 10 issues of information through platform-based supervision channels, received two
In 2025, the consumer business group completed audits of 122 suppliers and provided coaching to more than 500
challenge-related issues and one complaint, and handled three supplier challenges.
suppliers.
The Company imposed disciplinary sanctions on 13 suppliers suspected of bribing Company employees and additionally recovered
RMB 2.6 million.
Procurement job rotation and declaration of conflicts of interest
In accordance with the Supplier Incentive The Company has also formulated the Administrative Measures for Sup- The Company implements a procurement job rotation mechanism. Procurement rotation has been digitized and includes cross-de-
and Exit Management Standards, the Com- plier Blacklist Management and implemented supplier blacklist controls. partmental rotation, while declarations of supplier-related conflicts of interest are also managed online. In 2025, the Company
pany has established an orderly supplier Suppliers that, during due diligence, bidding, contract performance, war- completed job rotation for 105 procurement personnel and completed 4,024 declarations of conflicts of interest.
exit mechanism, strengthened the risk as- ranty fulfillment, or other stages, are verified to have engaged in violations
sessment and control of exiting suppliers, of laws and regulations, breaches of contract, integrity failures, disruption
and its involuntary. of order, or other conduct that causes losses to the Company are included
in blacklist management, prohibited from receiving new purchase orders,
and subject to business suspension.
Supply Chain Risk Management
The Company has standardized supplier risk management, enhanced overall supply chain capabilities, and safeguarded the security of supply
Integrity in Procurement resources. To this end, it formulated the Specifications for Supplier Risk Management, requiring each unit to establish supplier risk identifica-
tion, assessment, and early warning mechanisms, routinely carry out supplier risk identification and assessment, investigate latent supplier
The Company routinely carries out integrity management and integrity education, and continues to foster a transparent and integrity-based risks, classify risk levels, and maintain a risk control ledger for its own unit. In the supplier risk management process, the PDCA cycle shall
trading environment and build a transparent and integrity-based supply chain. be followed to ensure comprehensive identification, accurate assessment, proactive response, and strong oversight, thereby forming a closed
loop and enabling continuous improvement.
Supply Chain Digitalization
Integrity education and training for procurement personnel
Based on a full lifecycle supplier management model and using the integration of digital and intel-
The Company continues to expand the scope of integrity education. In 2025, it conducted two rounds of full-coverage education
ligent technologies as the means, the Company has built a smart supply chain system that enables
for employees in procurement positions, centrally organized three integrity-themed film-viewing activities for all employees, and
end-to-end digitalized management covering resource demand and deployment, supplier sourcing
compiled a 30,000-word procurement integrity education reader covering 15 categories of procurement-related integrity laws and
and onboarding, cooperation and evaluation, and incentives and exit. The Company fully launched its
provisions, 15 integrity cases, and four categories with nine integrity measures.
online smart supply chain system in 2025. In 2025, all 110 procurement units across the Company
fully applied all functional modules of the supplier management system.
Case: Sichuan Changhong Supports the Development of a Green Industry Ecosystem
Digital Supply Chain
Control Tower
In May 2025, the Sichuan Green Building Materials Industry Chain Supply and Demand Matchmaking Conference was convened. Sichuan
B us i ness Business Ear- Compliance Changhong, as one of the leading enterprises in the green building materials industry chain in Sichuan Province, was invited to attend.
S uper v i s i o n ly Warning Inspection
The Company delivered a keynote speech titled “Co-building a Green Ecosystem and Intelligently Creating a New Industrial Future”
Execution Moni- Price Compari- Decision and officially launched its “Smart Home” product series at the conference. The successful convening of this conference established an
toring Supplier Risk
son Alerts Support efficient and pragmatic cooperation platform for upstream and downstream enterprises in the green building materials industry chain in
Sichuan Province. It is of significant importance for building a more resilient and competitive green building materials industrial ecosys-
Operations tem and promoting the high-quality coordinated development of the construction and building materials industries.
Business
Management Execution
Dashboard Reports
Basic Business Panoramic Multi-scenar-
Analysis View Dash- io Analysis
board
Digital Supply Chain
Cockpit
Foundational Procurement
management Procurement Sourcing and Procurement settlement
Demand Pricing execution
Full lifecycle management
of suppliers
Supplier Risk
Cost Performance Settlement Model
Model Evaluation Terms Mod-
Price Cap Evaluation Discount
Model
Model Model el Changhong’s “Smart Home” product series was showcased at the Sichuan Green Building Materials Industry Chain Supply and De-
Model
mand Matchmaking Conference.
Digital System Architecture Diagram
Supply Chain Labor Management
Green Supply Chain
The Company requires suppliers to sign the supplier corporate social responsibility agreement, which incorporates labor requirements—such
Focusing on benchmarking against industry requirements for green supply chain management, the Company has continuously advanced as freely chosen employment, prohibition of child labor and protection of minors, working hours, compensation and benefits, humane treat-
green supply chain development by establishing and improving supplier admission and control standards for the green supply chain, strength- ment, and non-discrimination—into binding clauses. At the same time, in accordance with the specifications for supplier risk management,
ening the implementation and communication of green supply chain control standards, and ensuring that the supply chain remains compli- the Company conducts normalized management of supplier labor risks. Where violations of contractual requirements—such as excessive
ant, efficient, and sustainable, thereby achieving coordinated economic and environmental benefits. overtime—are identified during routine supervision, inspections, or audits, an early warning mechanism is activated, requiring suppliers to
complete rectification within a specified timeframe, with follow-up tracking until full correction is achieved. Where serious forced labor is con-
firmed, cooperation is immediately terminated, the supplier is included in the Company’s supplier blacklist, and a company-wide notification
is issued. The Company adheres to comprehensive identification, accurate assessment, proactive response, and robust supervision, forming
a closed-loop management process with continuous improvement.
Screening stage Audit stage
Potential suppliers are re- Review stage The audit covers the RoHS management
quired to disclose informa- Suppliers that fail to provide hazardous system, design and change manage-
tion on product hazardous substances control test reports may not ment, supplier management and pro-
Supply Chain Training and Engagement
substances control and the be admitted. Environmental compliance curement, inspection and testing, and
enterprise’s environmental and hazardous substances control sys- nonconforming product control. Failure
performance. tems are treated as veto items. to clearly define environmentally haz- To promote the integration of ESG concepts into industrial chain, supply chain, and value chain management, the Company actively encour-
ardous substances and formulate rele- ages suppliers to jointly fulfill responsibilities and build an ESG ecosystem. In 2025, the Company actively participated in promoting the de-
vant control requirements will result in velopment of the China Supplier ESG Rating Platform, organizing nearly 30 suppliers to join the platform and participate in ESG ratings. The
an unsuccessful audit. Company was also awarded the title of “China Supply Chain ESG Management Demonstration Enterprise”.
Supplier coaching and training Development of Supplier ESG Standards
Through technical and quality improvement training as well as on-site coaching, the Company has provided nearly 7,000 targeted capability In 2025, the Company participated in the formulation of two ESG standards: Guidelines for Supplier ESG Evaluation and ESG Management
enhancement initiatives to nearly 1,000 suppliers over the past three years, further upgrading the overall capability of the supply chain. Requirements for Corporate Supply Chains. These efforts help enterprises mitigate international trade barriers, improve ESG governance
effectiveness, and fill gaps in domestic standards for supply chain ESG management.
Standard Name Date of Issuance Standard Category Lead Institution
Case: Changhong Global Core Supply Chain Partners Summit 2025
Guidelines for Supplier ESG Eval- China Enterprise Reform and
In April 2025, the Company hosted the “2025 Changhong Global Core July 18, 2025 National Association Standard
uation (T/CERDS 17-2025) Development Society
Supply Chain Partners Summit”. At the summit, systematic training
was provided to 130 participating suppliers on key supplier-related
aspects of the Company’s quality management system, including fun-
damental principles, core policies, management standards, adminis- ESG Management Requirements China Enterprise Reform and
trative measures, and implementation guidelines. October 24, 2025 National Association Standard
for Corporate Supply Chains Development Society
Metrics and targets
Supplier engagement and empowerment
The Company actively responds to the green transformation of the supply chain and has incorporated “promoting collaborative carbon reduc-
tion among upstream and downstream partners” into its 2021–2030 strategic plan. The Company has clearly stipulated that by 2030, 100% of
The Company actively engages with suppliers on a range of topics, including ESG, to continuously strengthen their capabilities and support
supplier admission processes will embed social responsibility commitment mechanisms. As of the end of the reporting period, the consumer
their development while fostering collaborative growth.
business group has achieved full coverage of supplier social responsibility commitments.
Case: Sichuan Changhong Participates in Initiating an ESG Rating Platform Progress in Re-
Indicators Targets for 2025 2025 Performance
porting Period
As one of the first initiating members of the China Supplier ESG Rating Platform, Sichuan Changhong leverages its role as a leading Supplier ESG control rate 100% 100% Completed
enterprise in the industrial chain to demonstrate leadership and promote best practices. The Company has encouraged suppliers to
establish and improve ESG governance systems, invited and organized nearly 30 suppliers to join the platform and participate in ESG Establish a normalized supplier risk management mech-
ratings, helping suppliers identify their ESG strengths and weaknesses, improve ESG performance in a targeted manner, and enhance anism and provide early warnings for procurement risks
their competitiveness in international markets.
Completion rate of supplier supervision and audits for the
consumer business group
On-time completion of supplier performance evaluations
for the consumer business group
Completeness of technical, quality, and other agreements
for suppliers under the consumer business group
Responsible Sourcing of Conflict Minerals In March 2025
The Company participated in the Appliance
In the normative appendix template for supplier corporate social responsibility agreement under the Supplier Agreement Management
& Electronics World Expo (AWE) in China,
Policy, The Company requires suppliers to commit to avoiding the use of conflict minerals. Suppliers shall ensure that all metals used
where it launched its first “healing-orient-
in or contained in the products and their packaging delivered to the Company are not sourced from the Democratic Republic of the Con-
ed” AI TV and PRO shared air conditioning
go (DRC) or its adjoining countries, or from areas within these countries controlled by armed groups. At the same time, suppliers are
solution for integrated living and dining
required to strengthen supply chain management by establishing relevant management systems and procedures to effectively identify
spaces, combining home appliances with AI
and trace the origin of raw materials, ensure the legality of sourcing, and prevent the use of conflict minerals.
to empower smart living.
Equal Treatment of SMEs
The Company has formulated the Basic Management System for Procurement of Materials and Services and the Basic Supplier Man-
agement System, which explicitly require that procurement activities and supplier selection, onboarding, business execution, and eval-
uation adhere to the principles of openness, fairness, impartiality and integrity the “Four Principles”, ensuring equal treatment of all In September 2025
enterprises. During the reporting period, the Company maintained a 100% on-time payment rate for supplier payments, with zero
overdue payments. The Company has maintained “zero” adverse credit records in authoritative regulatory systems such as the National
The Company made the global debut of
Enterprise Credit Information Publicity System.
its panda-themed home appliances at the
IFA (International Consumer Electronics
Show) in Berlin, Germany. By integrating
the cultural symbol of the giant panda with
cutting-edge AI technology, the Company
Promoting Industrial Synergy and Co-creation transforms AI-powered home appliances
into cultural ambassadors that convey the
charm of Chinese culture to the world.
Driven by technological innovation and ecosystem collaboration, Sichuan Changhong actively promotes high-quality and sustainable
development across the industry.
In January 2025 In October 2025
The Company showcased the world’s first The Company participated in the 138th Chi-
AI TV, AI refrigerator, AI air conditioner, and na Import and Export Fair (Canton Fair),
AI smart home solutions at the Consumer presenting a full range of AI home appli-
Electronics Show (CES) in Las Vegas, USA. ances—including AI TVs, AI air conditioners,
AI refrigerators, and AI washer-dryer sets.
These products demonstrate a smarter,
more comfortable, and more sustainable
lifestyle for global consumers.
Supporting All-around Rural Revitalization 081 Electronics Group
Focusing on the development needs of Qingsong Village in Shima Town, Mianyang, Sichuan Province, the Group provided assistance
During the reporting period, Sichuan Changhong strictly implemented the objectives and requirements set forth in policy materials valued at over RMB 24,000, distributed fertilizers to support spring farming, and carried out Spring Festival consolation
frameworks such as the Work Plan for Foundational Assistance to Promote Revitalization and Development of Less-devel- activities. It also invested RMB 10,000 in the renovation of public toilets to improve the living environment. In addition, it facilitated
oped Regions and the Work Plan (2024–2027) for Foundational Assistance to Promote Revitalization and Development of transportation subsidies totaling RMB 151,800 for 174 individuals from formerly impoverished households seeking employment
Less-developed Regions. Focusing on areas including industrial upgrading, talent cultivation, cultural development, organ- across regions, helping to stabilize income growth.
izational strengthening, and consumption-based assistance, the Company supported less-developed regions in advancing
toward sustainable development and comprehensively contributed to rural revitalization in assisted areas.
Changhong Real Estate
Rural Revitalization Working Mechanism The Company continued to contribute to rural development and employment support. First, in terms of consumption-based as-
sistance, it purchased and helped sell nearly RMB 60,000 worth of agricultural and sideline products from designated assistance
The Company established a rural revitalization assistance leading group headed by the chairman of the board, formed a coordinated support regions in 2025, and provided venues for product sales, supporting rural revitalization. Second, in terms of employment assistance,
mechanism featuring centralized corporate decision-making, implementation led by the labor union, and coordinated advancement by in- it offered targeted job opportunities for individuals from Wenchuan and Maoxian County in Sichuan Province, successfully employing
dustrial units. At the same time, the Company formulated and implemented a series of assistance plans and programs, clearly defining as- two local residents in stable positions, thereby contributing to local livelihood improvement.
sistance objectives, pathways, and measures. Allocate special funds annually to support assistance projects, and regularly dispatch company
employees to carry out on-site village assistance work.
Changhong Kuaiyidian
Rural Revitalization Initiatives
In supporting the development of rural specialty industries, the Company organized technical personnel to provide volunteer ser-
vices based on local needs. A total of more than 30 electrical devices for village committees and residents were repaired, ensuring
the proper functioning of relevant facilities and providing technical support for the promotion and operation of local specialty indus-
Industrial assistance tries. In addition, through specialized training on digital office skills, covering more than 20 village representatives, the Company
effectively enhanced grassroots digital application capabilities, laying a foundation for cultivating local talent and and enhancing
RMB 2.7 million was donated for the introduction of high-quality breeding livestock, promoting the upgrading of the yak industry employability skills.
and supporting breed improvement.
Educational assistance
The Company donated RMB 1 million to an education fund in key rural revitalization assistance areas to support the “One Village, One
Preschool” initiative and strengthen the teaching workforce in compulsory education. In addition, the Company invested RMB 1.4878
million to organize four “Seven-Colored Changhong” winter and summer camps for teachers and students, involving a total of 262 par- Case: Smart Agriculture
ticipants. The camps were held in cities including Mianyang, Chengdu, and Beijing, aiming to enhance patriotism education.
Cultural assistance Changhong Hongxin has made breakthroughs in crop
model-based irrigation technology. By leveraging dy-
RMB 1 million was donated for the construction of educational and awareness bases, fostering cultural branding and practice plat- namic data collection algorithms and crop growth
forms, and promoting the development of cultural and tourism industries in remote and high-altitude areas of Sichuan Province. stage-specific models, it generates irrigation solu-
tions that achieve water and fertilizer savings, there-
Organizational assistance by strengthening the foundation for strategic product
development. Crop Model-based Irrigation Technolo-
Through paired cooperation initiatives, RMB 186,000 was invested to organize 40 grassroots reserve talents from remote and gy——Using a self-developed “dynamic crop environ-
high-altitude areas and 40 village-level backbone personnel from Pingwu County to participate in study and exchange programs mental data collection algorithm”, the system calcu-
in Mianyang. Training was conducted through theoretical instruction, on-site visits, and seminars, covering topics such as village lates field water evaporation and establishes models
cadre performance, digital village development, smart agriculture, and rural tourism. for water and fertilizer requirements across different
crop growth stages. This enables a closed-loop pro-
Consumption-based assistance cess of “data collection – data analysis – irrigation ex-
ecution”, generating dynamic irrigation solutions. The
The Company fully leveraged its online platform “Hongchuang Youpin” to strengthen promotion and marketing efforts. Offline channels, in- technology achieves an average water-saving rate of
cluding the labor union system platform and free direct-sale stores for agricultural specialty products in assisted areas, were used to support 30% per mu and a fertilizer-saving rate of 25%.
product sales. A total of RMB 11.601 million was spent on purchasing local agricultural and livestock products, such as tea, yak meat, and
cured meat products. These efforts helped expand and upgrade local agricultural and pastoral enterprises and benefited 6,633 local residents.
Actively Fulfilling Social Responsibilities
Case: Supporting Talent Revitalization
Sichuan Changhong consistently integrates the fulfillment of social responsibilities into its corporate development strategy,
In six assisted villages in Pingwu County, the Company awarded scholarships to 23 students admitted to higher-level educational
focusing on community services and public welfare initiatives, and contributing positively to sustainable economic and social
institutions, encouraging them to pursue academic excellence, serve as role models, and contribute to their hometowns, society,
development.
and the nation in the future, thereby injecting new vitality into rural revitalization.
Public Welfare and Volunteer Services
In 2025, the Company and its subsidiaries actively engaged in public welfare initiatives. Through activities such as voluntary blood donation,
care for the elderly and children, and afforestation, the Company demonstrated its commitment to corporate social responsibility.
Public Welfare Blood Donation
The Company actively
participated in voluntary
blood donation cam-
paigns, conveying hope
for life through a “relay of
Scholarship awards were granted to 23 students in Pingwu County. compassion”.
Case: Promoting Industrial Development
The Company conducted field visits to the Xinqiao vegetable base, the golden cypress and coptis chinensis industry, the Ronghua
Village small chili pepper base, and local homestay industries. The Company also carried out in-depth research in Jiaozishan
Village, Bazi Village, Huazui Village, and Libao Village, assessing the current status and future plans of collective economic devel-
opment, and provided guidance and recommendations for industrial development in each village.
Volunteer Services
The Company organized
volunteer activities at the
Mianyang Social Welfare
Institute, carrying out a
themed initiative titled
“Respecting the Elder-
ly on the Double Ninth
Festival and Spreading
Warmth in the Golden
Autumn”, delivering care
and support to elderly
residents.
Child Care Improve the Community Environment
Sichuan Kuaiyidian or-
In 2025, the Company’s general management department carried out a public welfare activity in Jiangyou City under the theme
ganized a themed Party
“Learn from Lei Feng, Promote New Values, Protect Green Mountains, and Build a Clean Environment through Civilized Action”.
Day activity titled “Warm
The initiative contributed to local environmental protection efforts, creating a more comfortable and greener environment for both
Hearts in Winter, Protect-
residents and visitors.
ing Childhood” at the Mi-
anyang Children’s Welfare
Institute.
Participation in Community Co-development
The Group takes a proactive approach to partnering with the community, fostering a collaborative development model that builds a har-
monious, supportive, and thriving community ecosystem, and contributes to improving residents’ quality of life and promoting community
prosperity.
Enhance Community Convenience
In 2025, Changhong Air Conditioner collaborated with the Huigong supply and marketing cooperative in Fugong Township, Fucheng
District, Mianyang, to develop the “Mianxiaogong” fresh produce retail project. Leveraging an “Internet + grocery basket” model
and adopting a supply chain approach of “direct sourcing from surrounding production areas + warehousing and packaging + daily
distribution”, the project provides employees and nearby residents with 24-hour smart and convenient retail services, enhancing
community accessibility and convenience.
Outlook
Looking ahead, Sichuan Changhong will remain committed to its mission of “Technology-driven Changhong, Creating a Better Life”. With talent development and responsibility as the foundation, we will continue to build a harmonious and mutually reinforcing internal
With high-quality development as its core focus, we will continue to promote industrial structure optimization and enhance operational ecosystem and social connection. We will further improve our compensation and benefits system and talent development framework,
quality and efficiency. We will comprehensively embed ESG principles into its corporate strategy and daily operations, working together enhance talent mobility and training mechanisms, and safeguard employee rights and career development. At the same time, adhering
with employees, customers, partners, and all sectors of society to address challenges, seize opportunities, and steadily advance toward to a customer-centric approach, we will strengthen product quality supervision and enhance service experience, actively engage in
becoming a world-class enterprise, contributing to sustainable social development. public welfare and community development, and effectively fulfill our responsibilities as a corporate citizen.
We will continue to drive innovation and global expansion, strengthening technological leadership and brand upgrading. We will increase With sound governance and robust risk control as the safeguard, we will continue to consolidate a compliant and resilient operational
investment in R&D, focusing on frontier technologies such as artificial intelligence, the Internet of Things, and big data, to build a more foundation. We will further optimize our governance structure, enhance the functions of the Board of Directors and specialized
competitive smart home ecosystem and effectively address user needs through technological innovation. At the same time, we will committees, and improve the ESG management system and information disclosure. We will comprehensively advance the development
deepen its global presence, enhance brand development through innovative marketing and quality improvement, actively respond to of our compliance and risk management system, strengthen intellectual property protection and legal risk prevention and control,
the national policy on the replacement of old appliances with new ones, and promote the dual upgrading of industry and consumption. and reinforce internal control, audit, and supervision mechanisms to ensure steady and sustainable development within a framework
governed by the rule of law.
Guided by green transformation and low-carbon operations, we will actively address climate change and fulfill its environmental
responsibilities. Centered on our carbon neutrality strategy, we will continue to advance energy conservation and carbon reduction, We firmly believe that, guided by a clear strategy, supported by a robust execution system, and driven by the collective efforts of
green manufacturing, and clean energy utilization, accelerate the development of green factories and zero-carbon factories, and all Changhong employees, we will continue to achieve new breakthroughs on the sustainable development journey, create value for
systematically implement carbon footprint management. Through digitalized energy and carbon management and the introduction stakeholders, and contribute to a better and greener future.
of new technologies, we will reduce carbon emission intensity and promote harmonious coexistence between its operations and the
ecological environment.
Appendix Indicator Name Unit 2023 2024 2025
Natural gas
Key Performance Indicators — Environmental Dimension4 Consumption
Classification
Total Purchased Electricity
by Energy 10,000 kWh 44,163.69 54,969.58 59,964.58
Type Consumption
Response to Climate Change Total Purchased Steam
GJ 125,233.80 119,222.50 165,636.48
Consumption
Total Clean Energy Consumption 10,000 kWh — — 12,549.37
Indicator Name Unit 2023 2024 2025 Green Electricity
Consumption within 10,000 kWh — — 12,111.78
Total Greenhouse Gas Emissions tCO2e 235,000.70 260,098.03 264,252.95
Classification Purchased Electricity
by Type
Scope 1 Greenhouse Gas Emissions5 tCO2e 33,649.31 43,190.73 46,424.36 Self-generated solar
power usage
Scope 2 Greenhouse Gas Emissions6 tCO2e 201,351.39 216,907.31 217,828.59
Kg CO2e / RMB 10,000
Greenhouse gas emission intensity 43.21 39.77 38.36
output value Water Resource Utilization8
Greenhouse Gas Emissions per RMB tCO2e/ RMB 1,000,000
Greenhouse Gas Emissions Reductions7 tCO2e — — 68,851.39 Total Water Withdrawal ton 12,170,084.11 14,292,610.12 20,899,741.16
Purchased
ton —— 2,925,742.51 3,773,404.16
Classification by Fresh Water
Energy Utilization Source Circulating
ton —— 11,366,867.61 17,126,337.00
Water Usage
Total Water Consumption ton 11,175,127.32 13,121,057.95 19,736,326.68
Indicator Name Unit 2023 2024 2025
t / RMB 1,000,000
Water consumption intensity9 2.05 2.01 2.87
Total Energy Consumption tce 81,424.86 97,806.51 102,882.90 output value
Comprehensive Energy Consumption
tce / RMB 1,000,000 1.50 1.50 1.49 Environmental Compliance Management
per RMB 1,000,000 Output Value
Petrol
ton 144.89 144.33 154.22
Consumption
Classification
Indicator Name Unit 2023 2024 2025
by Energy Type Total Environmental Protection
Diesel oil RMB 10,000 4,335.66 6,057.63 4,333.62
ton 548.81 541.93 431.67
Consumption Investment
Proportion of Environmental Protection
% 0.044 0.058 0.040
including Sichuan Changhong Battery, 081 Electronics Group, Sichuan Changhong Mold and Plastic Tech, Changhong NeoNetTechnologies, Changhong China Smart Display,
Total Number of Participants in
Sichuan Changhong Packing & Printing, Sichuan Changhong Precision Electronics Technology, Sichuan Changhong Component Technology, Changhong Air Conditioner, person-times 25,142 27,848 33,758
Changhong Meiling, Changhong Jijia Precision Industry, Changhong Huayi, Guangdong Changhong Electronics, and Zhongshan Changhong Electronics. The reporting Environmental Training
boundary for 2024 and prior years is presented in the ESG reports of the respective years.
Amount of fines for major admin-
result from the consumption of diesel, gasoline, and natural gas during production processes. istrative penalties or criminal lia-
Standard (2004) and include purchased electricity and heat. Carbon emission factors are derived from the Electricity Carbon Dioxide Emission Factors 2023 released by the environmental authorities due to
Ministry of Ecology and Environment and the National Bureau of Statistics on December 31, 2025. When calculating carbon emissions from purchased electricity for production
environmental incidents
units in different provinces, the corresponding provincial grid emission factors are applied.
Indicator Name Unit 2023 2024 2025
Pollutant emissions
t/RMB 10,000 output
Hazardous Waste Generated 0.08 0.07 0.07
value
Indicator Name Unit 2023 2024 2025
General Industrial Solid Waste Discharge t/RMB 10,000 output
Air Pollutants per RMB 1,000,000 Output Value value
Exhaust G as Emi ssi ons 10,000 m? 566,403.78 801,630.38 692,927.94 Hazardous Waste Discharge per RMB t / RMB 1,000,000
Volatile Organic Compounds (VOCs) Kg 162,603.85 196,913.39 198,202.34
General Industrial Solid Waste Discharge t / RMB 1,000,000
Nitrogen Oxides (NOx) Kg 11,790.19 10,451.57 12,763.57 per RMB 1,000,000 Revenue revenue
Sulfur Dioxide (SO2) Kg 5,042.82 2,832.23 4,021.71 Electronic Waste Generated ton 1,329.94 1,638.53 1,551.02
Particulate Matter Kg 9,608.32 8,335.48 9,379.05
Electronic Waste Recycled ton 1,329.94 1,638.53 1,551.02
Water Pollutants
Electronic Waste Recycling Rate % 100 100 100
Industrial Wastewater Discharge ton 994,956.79 1,171,552.17 1,163,414.48
Chemical Oxygen Demand (COD) Kg 37,723.4 49,959.08 37,412.96
Circular Economy and Recycling
Ammonia Nitrogen Kg 4,347.34 2,009.31 3,230.27
Total Phosphorus Kg 268.32 311.20 294.74 Indicator Name Unit 2023 2024 2025
Total Nitrogen Kg 11,075.55 11,216.47 10,631.49
Total Waste Recycled and Reused ton 100,507.29 127,197.55 118,140.88
Proportion of Waste Recycled and
% 96.3 97 96.6
Waste disposal Reused
Indicator Name Unit 2023 2024 2025 Key Performance Indicators — Social Dimension
Total Waste Generated ton 103,003.71 131,276.79 120,721.12
Employee
Hazardous
Waste Generated ton 4,163.22 4,343.82 4,501.49
(Hazardous Waste) Indicator Name Unit 2023 2024 2025
Classification
by Waste Type General Industrial Total number of employees Person 45,443 45,376 46,886
Solid Waste
ton 98,840.49 126,932.97 116,219.63
Generated (Non- Classification
Male Person 26,142 25,934 28,139
hazardous Waste) by Gender
Indicator Name Unit 2023 2024 2025
Occupational Health and Safety
Classification
Female Person 19,301 19,442 18,747
by Gender
Indicator Name Unit 2023 2024 2025
Employees aged
Person 8,515 9,648 10,788
Person 0 0 0
Cases
Employees aged
Person 12,332 12,292 12,689
% 0 0 0
diseases
Classification Employees aged
Person 14,291 13,993 14,692
by Age Group 40–49
Occupational Health Training person-times 26,378 27,707 45,648
Employees aged
Person 6,713 6,205 5,807
person-times 196 242 94
management personnel
Employees aged
Person 3,592 3,238 2,910
rate for employees in hazard- % 100 100 100
Chinese nationals Person 44,617 44,194 45,712 exposed positions
Classification
by Nationality Compliance rate of occupational
Foreign nationals Person 826 1,182 1,174 % 100 100 100
disease hazard factor testing
Labor contract signing rate % 100 100 100 Pre-job safety training pass rate for
newly recruited, transferred, and % 100 100 100
Social insurance coverage rate % 100 100 100 reinstated employees
Occupational health surveillance
Proportion of female managers % 15.66 14.24 13.72 % 100 100 100
compliance rate
Localization rate of overseas employees % 96.61 97.46 89.90
Investment in work safety RMB 10,000 1,078 1,484 6,696.3
Employee Turnover Rate10 % — — 4
Work safety training for on-duty
person-times 45,771 85,154 148,682
personnel
Number of Employee Training Sessions Time — 230,000 278,000
Production safety accidents
Time 0 0 0
Employee Training Expenditure RMB 10,000 — — 2,800 resulting in fatalities
Number of employee fatalities due
Employee Training Coverage Rate % — 100 100 Person 0 0 0
to work-related incidents
Number of Employees Receiving
Person — 36 27 Physical examination coverage rate % 100 100 100
Assistance for Hardship
Employee Satisfaction % — — 96 Number of identified safety hazards Nos. 8,605 11,372 14,017
Rectification Completed Nos. 8,459 11,372 13,790
Center).
Supply Chain Security Product and Service Quality and Safety
Indicator Name Unit 2023 2024 2025 Indicator Name Unit 2023 2024 2025
Total number of suppliers suppliers 5,792 6,854 6,155
Product recall incidents Time 0 0 0
Domestic supplier percentage % 99.83 99.42 99.12
Major product quality and safety
Localized domestic supplier percentage % 63.51 63.72 40.58 Time 0 0 0
incidents
Percentage of domestic supplier
purchase amount to total supplier % 66.83 57.79 58.09 Customer satisfaction rate % 99.20 99.11 99.37
purchase amount
Proportion of Sustainably Certified Customer complaint rate % 0.19 0.19 0.15
% — — 91.00
Suppliers
Customer Complaint Resolution Rate % 100 100 100
Social Contribution and Rural Revitalization
ESG Data Table — Governance Dimension
Indicator Name Unit 2023 2024 2025
Investment in Rural Revitalization RMB 10,000 - 1,051.00 1,796.18
Corporate Governance
Beneficiaries person-times - 6,106 68,230
External donation amount RMB 10,000 - 442.20 200.00
Indicator Name Unit 2023 2024 2025
Number of donation beneficiaries person-times - - 66,254
Number of Directors Person 9 9 9
Innovation-Driven Development
Aged over 50 5 5 5
Classification
Aged 30 to 50 Person 4 4 4
Indicator Name Unit 2023 2024 2025
by Age Group
R&D investment RMB 10,000 249,048.16 260,148.57 270,445.78
Proportion of R&D investment in Aged under 30 0 0 0
% 2.56 2.51 2.49
operating revenue
Authorized patents Number 842 843 831 Male 8 9 9
Classification
Authorized invention Number 342 324 240 Person
by Gender
Female 1 0 0
New patent applications Number 1,268 1,322 1,455
Content Index
Indicator Name Unit 2023 2024 2025
Independent director Person 3 3 3
SSE Guidelines for Page
Report Directory GRI Standards
Sustainability Reports Number
Number of General Meetings of Shareholders Held Time 3 2 3 Reporting Guidelines 2-2、2-3、2-27
Article 1、Article 3、Article 4、
P3-4
Article 6
Message from the Leadership 2-2、2-27 Article 2 P5-6
Number of Board of Directors Meetings Held Time 19 18 23
About Sichuan Changhong 2-1、2-2、2-27 — P7-10
Number of Nomination Committee Meetings Held Time 3 — 1
Sustainable Development Management 2-29、3-1、3-2、3-3 P11-18
Article 5、Article 9、Article 12、
Article 51 -53
Number of meetings held by the Remuneration 2025 Sustainable Development Highlights — — P19-20
Time 3 3 2
and Appraisal Committee
Optimizing the Corporate Governance System 2-9、2-10、2-11、2-12、2-13、2-14 Article 11、Article 12 P23-29
Number of meetings held by the Strategy Strengthening Internal Control and Risk Prevention 2-15、2-16、2-17、2-18 P30-34
Time — 1 1 Foundations of
Article 14、Article 18
Committee Changhong
Strengthening the Upholding Integrity and Ethical Business Conduct 205-1、205-2、205-3、206-1 Article 54-56 P35-38
Foundations for
Number of meetings held by the Audit Committee Time 10 6 6 Development Enhancing Investor Relations and Information Disclosure
Article 6、Article 9、
P39-41
Practices Article 16-19
Number of meetings held by the ESG Management Practicing Compliant Tax Governance 207 P41-44
Time 1 3 2
Article 11、Article 14
Committee
Actively Addressing Climate Change 201-2、305-1~305-5 Article 20-28 P47-56
Strictly Complying with Environmental Regulations 2-27 Article 33 P56-59
Green Promoting Stable and Green Operations 305-6、305-7、306-1~306-5 Article 30、Article 31 P60-66
Changhong
Anti-Commercial Bribery and Anti-Corruption Advancing Low-carbon
Development Improving Resource Utilization Efficiency 302、303 Article 35、Article 36 P66-73
Developing a Circular Recycling Economy 301-2、301-3 Article 37 P73-74
Indicator Name Unit 2023 2024 2025 Strengthening Ecosystem and Biodiversity Protection 304 Article 32 P74
Achieving Breakthroughs in Core Technologies 2-22、3-3 P77-88
Total Number and Percentage of Directors Receiving
Article 42
Innovation-driven
% 100 100 100
Anti-bribery and Anti-corruption Training Changhong
Continuously Optimizing Customer Service 416-1、416-2 P88-96
Driving Industrial
Article 47
Upgrading
Total Number and Percentage of Management Strengthening Data Privacy Management 418-1 Article 43、Article 48 P96-98
Personnel Receiving Anti-bribery and Anti- % 100 100 100 Improving Fair Employment Mechanisms 401、405 Article 50 P101-104
corruption Training
People-oriented Safeguarding Employee Rights and Benefits 402、407、408、409 Article 50 P104-106
Changhong
Total Number and Percentage of Employees Supporting Employee
% 100 100 100 Development Empowering Comprehensive Employee Development 404 Article 50 P107-113
Receiving Anti-bribery and Anti-corruption Training
Ensuring Occupational Health and Safety(OHS) 403 Article 50 P113-120
Deepening the Responsible Supply Chain Ecosystem 204、308、414 Article 45、Article 46 P123-134
Responsible
Changhong
Anti-Unfair Competition Supporting All-around Rural Revitalization 203、413 P135-137
Empowering Synergistic
Article 39
Development
Actively Fulfilling Social Responsibilities 201、413 Article 40 P138-140
Outlook — — P141-142
Indicator Name Unit 2023 2024 2025
Key Performance — — P143-151
Unfair Competition Time 0 0 0 Content Index — — P152
Appendix
Amount Involved in Litigation or Major Administrative Report Rating — — —
RMB 0 0 0
Penalties Arising from Unfair Competition Suggestions and Feedback — — —
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