Farasis Energy (Ganzhou) Co., Ltd. 2025
Address: West Side of Caidie Road, North Side of West Jinling Road, Ganzhou
Economic and Technological Development Zone, Jiangxi Province
Environmental, Social and Governance
Postal Code: 341000 (ESG) Report
Corporate Switchboard: 0797-7329999
Investor Hotline: 0797-7329849
Farasis Energy (Ganzhou) Co., Ltd.
E-mail: farasislR@farasisenergy.com.cn sustainability@farasisenergy.com.cn
Committed to providing
leading clean energy products and services for the world,
promoting the sustainable development of human society,
and empowering a better life for humanity.
Integrity-Based Green Win-Win Innovation and
Operation Development Cooperation Transformation
Party-Building Leadership 27 Addressing Climate Change 41 Customer Relationship Management 55 Research and Development Innovation 75
Standardized Governance 27 Environmental Compliance 45 Employee Relationship Management 57 Product Quality and Safety 78
Prudent Operation 30 Pollutant Emission and Waste Treatment 46 Community Relationship Management 65 Intelligent Manufacturing and Lean
Management 81
Risk Management 34 Resource Utilization 50 Industrial Ecology Synergy 66
Product Compliance and Circular
Data Security and Privacy Protection 35 Ecosystem and Biodiversity Conservation 52
Economy 83
CONTENTS
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
About this Report
This is the fourth Environmental, Social and Governance (ESG) report released by Farasis Energy. Adhering to the principles of objectivity, comprehensiveness,
standardization and transparency, this report presents the management philosophy, management mechanisms and practical achievements of the Company
Reporting Period
in environmental, social and governance-related issues during the reporting period to all stakeholders.
This report is an annual report covering the period from January 1, 2025 to December 31, 2025. To enhance the completeness of the report, some content may
Explanation of Major Changes go beyond the above scope, which will be indicated where applicable.
In May 2025, the Company completed the re-election of the Board of Directors. The controlling shareholder of the Company was changed to Guangzhou
Data Description
Industrial Investment Holding Group Co., Ltd. (GIIHG), and the actual controller of the Company was changed to the People’s Government of Guangzhou
Municipality. This change in control does not have a material impact on the daily operation of the Company. For more details, please refer to the Conclusive
Announcement on the Completion of the Change of Controlling Shareholder and Actual Controller of Farasis Energy (Ganzhou) Co., Ltd. (Announcement No.:
The written information and quantitative data disclosed in this report are all derived from the original records or annual reports of the Company’s actual
operation. Unless otherwise specified, the data disclosed in this report are consistent with the scope of the consolidated financial statements of Farasis
Energy (688567.SH).
If the relevant financial data are inconsistent with those in the annual report, the data in the annual report shall prevail. All financial data in this report are
Report Scope denominated in RMB.
The scope of information disclosed in this report covers Farasis Energy (Ganzhou) Co., Ltd. ("Farasis Energy", "the Company" or "we") and its major production
Reliability Statement
bases (Ganzhou Base, Ganzhou New Energy Base, Zhenjiang Base, Guangzhou Base).
The Company confirms that this report does not contain any false records, misleading statements or material omissions.
Preparation References
Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies of Shanghai Stock Exchange No. 14 – Sustainable Development Report (Trial) Access to the Report
Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies of Shanghai Stock Exchange Science and Technology Innovation Board No. 13 –
Preparation of Sustainable Development Report (Revised in January 2026)
You may access or download the electronic version of this report through the Investor Relations section of the official website of Farasis Energy (Investor
Global Sustainability Standards Board (GSSB) Sustainability Reporting Standards (GRI Standards) Relations - Farasis Energy) or the website of the Shanghai Stock Exchange.
International Financial Reporting Sustainability Disclosure Standard S1 – General Requirements for Sustainability-Related Financial Information Disclosure If you have any questions or comments on this report, you may also contact us through the following channels:
(IFRS S1)
Investor Relations: farasisIR@farasisenergy.com.cn
International Financial Reporting Sustainability Disclosure Standard S2 – Climate-Related Disclosure (IFRS S2)
ESG/Sustainability: sustainability@farasisenergy.com.cn
Ministry of Finance Enterprise Sustainable Disclosure Standards – Basic Standards (Trial)
United Nations Sustainable Development Goals (SDGs)
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Message from the Leadership
Amid a profoundly evolving global landscape and the deep advancement of the energy revolution, 2025 stands as a pivotal year for Farasis Energy (Ganzhou) markets, contributing a reliable "Farasis Solution" to the global energy transition. Meanwhile, we have systematically strengthened climate change risk
Co., Ltd. in forging ahead amid pressure and pursuing progress while maintaining stability. Confronted with complex international dynamics and management, advancing green and low-carbon operations in an all-round way through clean energy adoption, energy conservation and consumption
industry-wide challenges, the Company has embraced vital strategic opportunities as Guangzhou Industrial Investment Holding Group Co., Ltd. has become reduction, and resource recycling. Two of our subsidiaries have been awarded national-level green factories. Driven by both green technology and green
its controlling shareholder. The infusion of state-owned capital has furnished robust strategic support and resource safeguards for the Company’s long-term manufacturing, we are continuously consolidating a solid foundation for sustainable development.
development.
We have pursued value co-creation, building an upward and socially responsible ecosystem through collaborative cooperation. Over the past year, we
Sustainable development has long been embedded in the corporate DNA of Farasis Energy. Over the past year, we have driven the deeper integration of this have worked hand in hand with all partners to innovatively establish a sustainable supply chain management system, translating ESG requirements into
principle into the Company’s corporate strategy and operations. For the first time, we have elevated ESG to the level of board governance, establishing an ESG evaluable and trackable performance indicators and systematically improving risk management and sustainable development capabilities across the entire
governance system with the Board of Directors and its special committees as the supreme decision-making body. We have also officially joined the United chain. For customers, we have always adhered to the lifeline of product safety and quality, continuously improved the service system, and built an efficient
Nations Global Compact, aligning with international standards and requirements. We have formulated strategies from a higher stance and advanced network covering more than 120 authorized service stations, continuously creating value through reliable products and professional services. Meanwhile, we
initiatives with practical actions to fulfill the expectations and requirements of all stakeholders, translating our commitment to sustainable development into have actively fulfilled our corporate responsibilities, integrated into rural revitalization and regional development, and created greater and better comprehen-
tangible advantages that propel the Company’s high-quality development. sive value in broader fields. By building a responsible, resilient and growth-oriented ecosystem, we have effectively translated the ESG philosophy into a
sustainable driving force for development.
We have pursued quality improvement and efficiency enhancement, consolidating the foundation for steady and sound development through
operational excellence. Over the past year, we have forged ahead under pressure. Internally, we have continuously refined the corporate governance Only through reform can we advance; only through innovation can we become strong; only through reform and innovation can we prevail. 2026 marks
structure, strengthened internal control, compliance management and business ethics, and enhanced risk resilience. We have systematically built the FOS the inaugural year of the 15th Five-Year Plan and a crucial starting point for the Company to enter a new stage of development. We will integrate the require-
Operational Excellence System, comprehensively improving cost control and operational efficiency across key dimensions including organizational reform, ments of sustainable development into every aspect of strategy, operation and culture with higher standards and more practical measures. We will continu-
cost reduction and efficiency enhancement, operational excellence and quality improvement. Adhering to the tiered and categorized talent development ously create new advantages for high-quality development through long-term, robust and sustainable value creation, and contribute "Farasis Wisdom" to
philosophy, we have launched the "Xin Guang", "Xin Chen", "Xin Hui" and "Xin Yao" talent development programs, cementing the talent foundation for the global power and energy storage battery solutions.
Company’s long-term development. Externally, we have deepened communication with investors, enhanced the transparency and effectiveness of informa-
tion disclosure, and earnestly protected the rights and interests of all shareholders. Through internal and external improvements and addressing both
symptoms and root causes, we are systematically building a governance framework and resilience foundation that underpins the long-term success of the Xie Yong, Chairman of the Board of Directors, Farasis Energy (Ganzhou) Co., Ltd.
enterprise.
Dong Ligang, President, Farasis Energy (Ganzhou) Co., Ltd.
We have seized opportunities and pursued innovation, anchoring the direction of green and innovative development through long-termism. Over the
past year, we have unwaveringly placed green innovation at the core of our strategy, continuously increased R&D investment, and proactively laid out the
energy storage business. In terms of technological breakthroughs, the industry’s first SPS soft-pack module-free power battery solution has achieved mass
production. In terms of product portfolio, ternary high-nickel, medium-nickel, lithium iron phosphate and sodium-ion batteries have been mass-produced
and delivered simultaneously. In terms of market expansion, the SPS lithium iron phosphate battery system solution has been successfully scaled for overseas
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
About Farasis Energy Business Segments
Farasis Energy (Stock Code: 688567.SH) was founded in 2009. As a global leader in pouch-type power batteries, Farasis Energy was listed on the STAR Market
in 2020, becoming the first power battery company listed on the STAR Market.
Business
Passenger Vehicle
The founding team of Farasis Energy has been engaged in power battery research and development since 1997, founded Farasis Energy USA in Silicon Valley
in 2002, and established Farasis Energy in Ganzhou, China in 2009, thus launching the industrialization and globalization of power batteries. The Company has
carried out in-depth cooperation with leading customers in the industry and established a leading market position. Meanwhile, relying on its technological
advancement and excellent market performance, Farasis Energy has obtained investment from state-owned capital and is now controlled by Guangzhou
Industrial Investment.
As an industry pioneer, Farasis Energy adheres to a global strategic layout, commits to promoting transportation electrification and energy greening, and
contributes to the sustainable development of energy and the human living environment.
Business
Commercial Vehicle
Engaged in power battery research Founded Farasis Energy USA Established Farasis Energy in Farasis Energy was listed on
and development in Silicon Valley Ganzhou, China the STAR Market
Business
Energy Storage
Business
Electric Aircraft
Corporate Vision
Focusing on technological innovation, leading
the energy revolution, and powering a better
life for humanity.
Corporate Mission
Business
Emerging
Providing clean energy and building an
intelligent world.
Corporate Spirit
Innovation, Entrepreneurship,
Business
Marine
Collaboration, Win-Win
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Global Industrial Layout
Stuttgart, Germany
Silicon Valley, USA Ganzhou Headquarters, China
Zhenjiang, China
Gemlik, Turkey
Ganzhou, China (Dual Bases)
Guangzhou, China
R&D Centers Production Bases Production & R&D Bases
China | Production Bases Silicon Valley, USA Stuttgart, Germany Gemlik, Turkey
Ganzhou, Jiangxi The Company conducts in-depth cooperation with North American strategic The Company carries out in-depth cooperation with European strategic The Siro base, a joint venture between Farasis Energy and Togg, has
Zhenjiang, Jiangsu partners and provides supporting services. The site focuses on cutting-edge partners and provides supporting services. The site supports product been completed and put into operation. The base provides power
Guangzhou, Guangdong technology research and development and reserves advanced technologies for and technology development for global complete vehicle manufactur- battery supporting services and energy storage solutions for Europe,
next-generation power batteries. ers and guarantees the delivery of international projects. the Middle East and other regions.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Corporate Honors
Leading Product Competitiveness
Maintained the domestic top Ranked among the global
installation volume of soft-pack top in the installation
power batteries for 9 consecutive volume of soft-pack power
years from 2017 to 2025 batteries for many years.
Global Power Battery
Installation Volume
Professional and Authoritative Recognition
National Enterprise Technology Scientific and Technological Innovation
Center Demonstration Enterprise
National Technological Innovation National Green Factory
Demonstration Enterprise
National Intellectual Property National High-tech Enterprise
Advantage Enterprise
Intelligent Manufacturing Pilot Advanced Collective in the National
Demonstration Project Battery Industry of China Battery
Industry Association
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Sustainable Development Governance
ESG Management
Governance
Farasis Energy attaches great importance to ESG governance and has established a three-level governance structure: "Board of Directors and Its Special
Committees – ESG Management Committee – ESG Working Group". The Company has formulated and issued the Sustainable Development (ESG) Manage-
ment System. The Sustainable Development Department serves as the full-time management department for ESG affairs. ESG ratings and other indicators
are embedded as key assessment indicators in the annual performance appraisal of senior management and the Sustainable Development Department,
which promotes all departments and production bases of the Company to integrate the ESG concept into daily production and operation, and helps the
Company achieve its ESG objectives.
The Company organized and held the 2026 The Company participated in and responded to the "2030
Special ESG Training Session Global Supply Chain Collaboration Initiative"
The Board of Directors and its Special Committees serve as the supreme decision-making body for
Strategy
ESG affairs of the Company. They are responsible for making decisions on major ESG-related matters The Company deeply embeds the concept of sustainable development into the core of its corporate culture, and constructs a sustainable development
Decision-Making Level
of the Company, reviewing and approving the Company’s annual ESG report, ESG-related risks with strategic framework led by the "EMPOWER" concept. The framework fully aligns with the 17 United Nations Sustainable Development Goals (SDGs) for 2030,
Board of Directors and its
significant impact on the Company, and response plans for major ESG negative events, and regularly and clarifies the value orientation for the long-term sustainable development of the Company.
Special Committees
listen to work reports from the ESG Management Committee.
The ESG Management Committee serves as the management body for ESG affairs of the Company,
which is chaired by the President. It is responsible for implementing ESG-related tasks assigned by
Management Level
the Board of Directors and the Strategy Committee, approving the ESG governance structure and
ESG Management important systems of the Company, formulating ESG objectives and supervising the achievement of
Committee such objectives, regularly listening to work reports from the ESG Working Group, and providing
guidance in a timely manner.
The ESG Working Group serves as the specific implementation department for ESG affairs of the
Implementation Level Company, which is led and established by the Sustainable Development Department. It is responsi-
ble for coordinating and promoting the implementation of ESG-related matters, organizing the
ESG Working Group
collection and submission of ESG information, assisting in the preparation of ESG reports, and
conducting ESG promotion and training.
Capability building serves as an important support for Farasis Energy to promote ESG work. The Company makes full use of internal resources to organize
special ESG training sessions, continuously deepens the cognition and understanding of ESG among middle and senior management employees, and
promotes the in-depth integration of ESG concepts and requirements into all aspects of the Company’s production and operation. Meanwhile, by joining the
United Nations Global Compact (UNGC) and participating in sustainable development-related industry associations, forums and initiatives, the Company
keeps abreast of the latest trends and requirements of sustainable development at home and abroad, and provides a solid foundation for improving the
overall ESG performance of the Company.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Management of Impacts, Risks and Opportunities Product Quality and Safety
The Company attaches great importance to the management of risks and opportunities related to sustainable development, and conducts analysis of
Impact Scope Period Risks Opportunities Financial Impacts and Paths
impacts, risks and opportunities for identified ESG topics of double materiality. Every year, the Company regularly organizes in-depth interviews with leaders
and colleagues of key departments and critical positions, discusses and studies the impact links, timeframes, impact degrees and development opportunities Any safety-related quality It may reduce sales revenue and market share,
Technical introduction and
of the topics, and gradually constructs and improves the ESG risk management and control mechanism and workflow. As shown in the table below, the flaws exposed by and may trigger brand impairment and
optimization of battery
Company has adopted effective management measures for the impacts, risks and opportunities of each topic, which can be found in relevant chapters of the authorities or the media may increased marketing costs.
pack SPS to improve
report. undermine confidence It can reduce rework rates and after-sales
Medium-term manufacturing reliability
Upstream among existing and maintenance costs, improve customer
and feasibility.
Value Chain potential customers, even if satisfaction and repurchase rates, thereby
R&D and Innovation no major incident occurs. enhancing profitability.
Enterprise
Operations It may trigger recall costs, legal compensation,
Impact Scope Period Risks Opportunities Financial Impacts and Paths
As the first batch of vehicles Establish a reputation for and brand reputation loss if large-scale aging or
Downstream
enters the end of their life "safe and reliable" product safety hazards occur.
Value Chain
cycle, the full-life-cycle quality and safety. It will form a brand premium, improve customer
Long-term
safety design of products loyalty, facilitate new market expansion and
The commercial transformation
It may lead to delayed project will be tested. high-end customer cooperation, and bring
and application of new
progress, reduced R&D efficiency, long-term stable cash flow.
technologies such as
The risk of talent loss in increased human replacement costs
Short-term passenger vehicle SPS,
R&D. and opportunity costs. If applied
two-wheeler iteration and
rapidly, it may bring revenue growth Customer Relationship Management
upgrading, and commercial
or market share improvement.
vehicle semi-solid batteries.
Impact Scope Period Risks Opportunities Financial Impacts and Paths
It will directly impact the stability of the
Short-term performance is Company’s revenue and capacity utilization,
highly dependent on several which may lead to a sharp decline in income and
Upstream It may lead to increased rework costs, Actively explore other major
top customers, and an increase in unit fixed costs, and squeeze
Value Chain The commercial transformation customer complaints and higher customers by leveraging the
The risk of mass Short-term fluctuations in sales volume profit margins.
of forward-looking layout in return rates, which will affect the Turkish factory to enter the
production consistency or adjustments to It can bring incremental revenue if new
Enterprise Medium-term the next-generation sodium gross profit margin. If mass European market.
in large-scale production plans of a single customers are successfully explored, diversify
Operations batteries, semi-solid batteries production is successful, it will bring
production. model may impact revenue the risk of customer concentration, and enhance
and all-solid batteries. new revenue sources and improve
Downstream and capacity utilization. anti-cyclical capabilities.
profitability.
Value Chain
Enterprise Any delivery delay or failure
It may lead to reduced orders, increased
Operations to meet expected quantity
compensation expenses, and even exclusion
The long-term due to capacity or yield Second-curve opportuni-
Downstream from the supplier list, resulting in medium- and
strategic foundation of issues will directly trigger ties: energy storage (more
Value Chain long-term revenue pressure.
the Company will be It may lead to sunk costs of early R&D Medium-term the risk of customer benign) and heavy-duty
It can open up new revenue sources if
shaken if the main investment, reduced brand production line shutdown trucks (high density, light
Large-scale shipment of successfully entering new tracks, improve the
technical route competitiveness and asset and severely damage the weight, long battery life).
Long-term all-solid batteries with good diversification of profit structure, and enhance
promoted by the impairment risks. It is expected to image of a "reliable
production line compatibility. risk resistance capabilities.
Company proves to form technical barriers, bring scale supplier".
have no comprehensive effects and long-term profitability.
advantages in the
Any delivery delay or failure It may lead to a continuous decline in profit
market. Focus on the continuous
to meet expected quantity margins and pressure on long-term profitability.
iteration of technology and
due to capacity or yield It can maintain high bargaining power and
Long-term always maintain
issues may affect customer customer stickiness if remaining ahead, and
differentiated competitive
Note: The Company defines the timeframe as follows: short-term (1 to 2 years inclusive), medium-term (3 to 5 years inclusive) and long-term (more than 5 production rhythm and ensure long-term stable cash flow and industry
advantages.
years). supply chain stability. status.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Supply Chain Management Intelligent Manufacturing and Lean Management
Impact Scope Period Risks Opportunities Financial Impacts and Paths Impact Scope Period Risks Opportunities Financial Impacts and Paths
Lock in upstream raw material This may lead to an increase in system
costs through vertical It can stabilize procurement costs, The Company faces the integration costs, ineffective utilization of
Sharp fluctuations The Company enhances the
integration and enhance mitigate impacts from price challenge of data silos data, and compromised decision-making
(increases) in the prices utilization efficiency of personnel
Short-term bargaining power through fluctuations, safeguard profit caused by inconsistent efficiency and production collaboration, which
of key raw materials at and resources, and improves yield
centralized procurement to stability, and potentially gain cost Short-term data interfaces among may result in implicit efficiency losses.
the material end. rates through process monitoring
strengthen supply chain advantages through scale effects. automation equipment The Company directly reduces the unit
and prevention of key parameters.
resilience. supplied by different manufacturing cost, decreases losses from
vendors. rework and waste products, and improves the
gross profit margin.
Management risks It may cause inventory overstock or
A dedicated If the Company fails to make timely
Enterprise
arising from a shortage losses, increase logistics
production line The Company extends lean adjustments, this may lead to idle capacity and
Operations
significant increase in and coordination costs, and reduce
designed for a specific management from the manufactur- depreciation pressure, and affect the profit
Build a sustainable supply asset turnover efficiency.
Upstream supply chain complexity Downstream product may fail to ing workshop to the full value stream margin.
chain to meet stricter review Medium-term
Value Chain Medium-term caused by diversified Value Chain meet the production from order receipt to product The Company reduces the occupation of
requirements in overseas or It will enable access to high-margin
customers, expanded requirements of the delivery, and reduces inventory and operating capital, improves the inventory
high-end markets. markets, obtain customer certifica-
Enterprise
product lines, and next-generation lead time. turnover rate, and optimizes cash flow and
tion premiums, avoid compliance
Operations
global multi-location product. return on assets.
risks and potential trade barriers, and
Downstream capacity layout.
improve revenue quality. The Company establishes a
Value Chain factory-level digital twin, and uses
Digitalization of the The Company reduces energy costs, losses
historical data and machine learning
entire process and all from equipment shutdowns and maintenance
The need to establish models to conduct predictive
It may result in high initial investment Long-term factors makes the expenses, extends the service life of
Leverage the inclusiveness of optimization of process parameters,
local or regional supply and high running-in costs, affecting factory a high-value
the pouch-cell form factor to equipment, and improves long-term
chains for overseas so as to realize prediction of quality
overseas business profitability and target for cyberattacks. profitability.
interface stress and the and energy consumption and
factory operations to capacity release.
adaptability of lamination preventive maintenance.
comply with policy
technology to multi-layer It can reduce technology switching
Long-term requirements involves
stacking to achieve a smooth costs, shorten capacity ramp-up
the cultivation of a
brand-new supplier
transition of manufacturing periods, seize dividends from Goals and Progress
processes in the transforma- next-generation technologies, and
system, facing multiple In 2025, the Company officially joined the United Nations Global Compact (UNGC), fully aligned with the 17 United Nations Sustainable Development Goals for
tion from liquid to solid-state achieve long-term revenue growth
challenges in 2030, and proactively reported its annual work progress. Meanwhile, the Company actively participated in external ESG forums, ESG award applications, ESG
batteries. and cost leadership.
standards, culture and rating rankings and other stakeholder engagement activities. Guided by the latest domestic and international standards and industry requirements, the
Company promoted internal management improvement and performance enhancement, communicated its ESG philosophy and disseminated outstanding
practices with a more proactive attitude, and enhanced the external influence of its ESG work.
ESG Ratings ESG Awards
Wind ESG Rating: AA Selected in S&P Global Sustainability Yearbook (China Edition) 2025
Awarded "Excellent ESG Practical Case" by China Times
S&P Global CSA Score: 53
Won the "Model Enterprise for Supply Chain Sustainability Management" of the
Huazheng ESG Rating: AA 2025 China Corporate Social Responsibility Model by Yicai
Won the "Environmental Friendly (E) Pioneer Enterprise" of the 2025 Cailian
Agency Zhiyuan Award
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Actions Actions
No Poverty A total of 1,339,600 yuan was spent on rural revitalization initiatives, helping 10 Actively participating in industry exchange activities to promote industrial Partnerships
people secure employment. Cash and materials with a total value of 221,200 yuan development and technological progress. for the Goals
were donated throughout the year.
Environmental, social, governance and mineral supply chain due diligence require- Peace, Justice
ments were included in the Supplier Code of Conduct and supplier cooperation and Strong
contract terms, clearly requiring suppliers to provide compliant, risk-free and Institutions
Good Health All major certified production bases have obtained ISO 45001 Occupational Health
traceable mineral sources.
and and Safety Management System certification, with 100% coverage of occupational
Well-being health examinations for employees.
Quality In 2025, the Company held 318 training sessions covering 30,601 participants,
No incidents with significant impacts on biodiversity were found in 2025. Life on Land
Education launched 247 online courses, and certified 187 internal trainers.
The Company conducts annual greenhouse gas inventories for Scope 1, Scope 2 Climate
and Scope 3. In 2025, 2 production bases successfully passed ISO 14064 carbon Action
Gender The Company formulated and issued the Board Diversity Policy. One new female
verification certification, among which the Ganzhou Base successfully passed
Equality director was added, accounting for 14.29% of directors in 2025, and the proportion
ISO 14068 carbon-neutral factory certification.
of female managers was 15.69%, an increase of 5% from the previous year.
In 2025, the utilization rate of recyclable packaging reached 65.33%. Responsible
Consumption
Clean Water All operational sites of the Company are supplied with municipal tap water. The
and Production
and total water consumption in 2025 was1,864,000 tons, with a water consumption
Sanitation intensity of 204.46 per million yuan of revenue.
During the reporting period, the compliance rate of waste gas, wastewater and Sustainable
Affordable The consumption of renewable energy in 2025 was14,463.03 tons of standard coal waste disposal reached 100%. Cities and
and Clean equivalent. The Company has two national-level green factories, among which the Communities
Energy Ganzhou Base has successfully passed the ISO 14068 carbon-neutral factory
certification.
Adhering to the principle of "fairness and impartiality", all discrimination based on Reduced
race, color, religious belief, gender, age, place of origin, etc. is prohibited. Inequalities
Decent Work The Company formulated and issued Human Rights and Diversity Policies, commit-
and Economic ting to respecting and protecting the human rights and labor rights of all employ-
In 2025, R&D investment was 631.12million yuan, accounting for 6.92% of operating Industry,
Growth ees, suppliers, customers and other stakeholders.
revenue; the number of R&D personnel was 1,203, and 128 invention patents were Innovation and
In 2025, 3,066 new employees were recruited. applied to main businesses. Infrastructure
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Stakeholder Communication
Farasis Energy (Ganzhou) Co., Ltd. maintains standardized and systematic communication processes for all stakeholders. The Company fully understands and
actively responds to the expectations and demands of each stakeholder group to continuously improve its operational management capabilities and sustain-
able development capabilities.
Government &
Stakeholder Shareholders & Investors Management Employees Customers Partners Community Partners
Regulatory Agencies
Investors Superior governments and Members of the Board of Ordinary employees Domestic and foreign customers Suppliers Surrounding communities of the
competent authorities Directors bases
Potential Investors Contractors
Shanghai Stock Exchange Senior Management Universities and research
Partners institutions
China Securities Regulatory Department Heads
Commission ESG rating agencies
Stakeholder
Representatives Media
Industry associations, etc.
Business operations and Law abiding and compliant Strategy execution and market Competitive salary and welfare Product quality and delivery Technical strength and Sustainable community
fundamentals operations competitiveness capacity cooperation stability development
Comprehensive training system
Strategic development direction Climate change response and Efficient corporate governance Information security and privacy Fair, just, open and transparent Sharing of corporate develop-
carbon neutrality structure Open and transparent protection procurement environment ment achievements
Financial performance and development channels
market prospects Contributions to local economic Profitability of the Company Green and low carbon products Technical empowerment and Reduction of environmental
Stakeholder Concerns and industrial development Workplace health and safety industrial development impacts
Corporate governance and risk Energy density and safety of
management capabilities batteries Market and sales support
Regular information disclosure Regular information disclosure Regular work reports Party branches Pre sales communication Supplier training Face to face communication
General Meetings of Sharehold- Participation in relevant Management meetings Labor Union After sales service On site audits and Public welfare activities
ers meetings communication
Special training Farasis Energy Community Routine communication (e.g., Complaint hotline
Investor roadshows and Communication through Employee Exchange Platform customer visits) Project cooperation
exchange conferences industry associations and other Email Media conferences
institutions Email Third party training Regular visits
Communication telephone and Enterprise WeChat Regular communication and
email Enterprise WeChat Customer audits feedback
Communication &
Factory site visits Employee suggestion box Project cooperation
Engagement Methods
Performance presentations "Farasis Home" Official Account Official website of Farasis
Energy, official accounts and
Investor relationship manage- other public channels
ment activities via new media
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Identification of Material Topics List of Topics
In accordance with the Self-Regulatory Guidance for Listed Companies on the Shanghai Stock Exchange No.14 – Sustainability Reporting (for Trial Implemen- During the process of identifying material topics for 2025, Farasis Energy (Ganzhou) Co., Ltd. has fully considered the following five major factors and
tation), Farasis Energy (Ganzhou) Co., Ltd. takes 21 topics as the benchmark and conducts an in-depth analysis of its business structure and operation model. has identified and selected 25 topics in combination with the actual operation of the Company, as well as analyzed the impacts, risks and opportuni-
The Company carries out research and analysis on stakeholders through questionnaires, executive interviews, departmental investigations and other ties of each topic.
methods. It fully considers the demands and expectations of all stakeholders, and systematically identifies material topics that are closely related to the
business operations of the enterprise and that occupy a prominent position in the stakeholder concern matrix.
Dimension Analytical Approach
Corporate The Company has sorted out ESG topics that are highly relevant to its core competitiveness and future development
Dimension Definition Materiality Analysis Criteria Development direction, with the development mission of "Providing Clean Energy and Building an Intelligent World" and the strategic
Strategy goal of striving to become a global leader in power battery technology.
Whether the performance of the Company on the corresponding •Likelihood of impact occurrence
Significance of
topic has actual or potential significant impacts on the economy,
Impact •Scale, scope and irreparability of impacts Macroeconomic The Company extracts ESG topics that are binding or guiding to various business segments in combination with relevant
society and the environment.
Policies national and local laws, regulations and policy documents to ensure that topic setting complies with policy orientations.
Whether the topic is expected to have significant impacts on the
Company’s business model, business operations, development •Likelihood of impact occurrence Stakeholder
Financial The Company defines ESG topics that require key responses by identifying major stakeholder groups and combining their
Materiality strategies, financial position, operating results, cash flow, financing Identification and
•Degree of financial impact key concerns and communication methods to improve the responsiveness and pertinence of topic responses.
methods and costs in the short, medium and long term. Response
Rating and
The Company refers to mainstream ESG rating and disclosure standards such as MSCI, SASB and Shanghai Stock
Information
Exchange to ensure that topic selection has international vision and industry applicability.
Farasis Energy Dual Materiality Analysis Process
Disclosure Guidelines
Peer Benchmarking The Company ensures that topic setting has industry comparability and forward-looking by benchmarking the disclosure
Background Identification and Understanding Analysis priorities of peers in the industry on ESG topics.
Fully understand the sustainable development background of the Company through the analysis of macroeconomic policies and regulatory
requirements;
Identify key stakeholders affected. Farasis Energy 2025 ESG Topic Library
Establishment of Topic List
Conduct preliminary identification, screening and definition of relevant sustainable development topics based on standard benchmarking,
peer benchmarking and policy analysis;
Analyze the actual and potential impacts, risks and opportunities involved in material topics.
Topic Materiality Assessment and Confirmation Environmental (8 topics) Social (9 topics) Governance (8 topics)
Significance of Impact Assessment (score: 0-5) Climate Change Response Employees Due Diligence
Conduct stakeholder communication through questionnaire surveys and refer to the opinions of internal and external experts to determine Rural Revitalization Stakeholder Communication
Environmental Compliance Management
topics with significant impacts.
Pollutant Emission and Waste Treatment Social Welfare Sustainable Development Governance
Financial Materiality Assessment (score: 0-5)
Energy Utilization Supply Chain Security Data Security and Privacy Protection
Conduct communication with the Company’s executives and financial-related personnel through questionnaire surveys and interviews, and
refer to the opinions of internal and external experts to determine financially material topics. Water Resource Utilization Industrial Cooperation and Industry Anti-Commercial Bribery and Anti-Corrup-
Development tion
Ecosystem and Biodiversity Conservation
R&D and Innovation Compliance Operation and Risk Manage-
Circular Economy ment
Topic Reporting Intelligent Manufacturing and Lean
Full-Lifecycle Green Solutions Management Party-Building Leadership
Product Quality and Safety Anti-Monopoly and Fair Competition
Integrate the questionnaire analysis results of topic materiality and expert scoring opinions to form a dual materiality topic matrix; after
review and confirmation by the Company’s management, the dual materiality topics of 2025 will be the key disclosure items of this report.
Customer Relationship Management
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Assessment of Materiality of Impacts
The Company assesses the materiality of impacts of sustainable development-related topics from two aspects: the likelihood and severity of impacts.The Table Note: Topics of Financial Materiality
likelihood of impacts is assessed from three dimensions: the scale, scope and irreparability of impacts.
The questionnaire survey has collected feedback from stakeholders including employees, shareholders and investors, senior management of the Company,
suppliers and other commercial partners, customers, communities and the media.Based on the questionnaire results, the Company has identified the key
concerns of different stakeholders, ranked the materiality degree of the 25 topics to Farasis Energy in combination with expert judgments, and derived the list
of material topics based on the set threshold of materiality of impacts. Climate Change Response R&D and Innovation Data Security and Privacy
Protection
Energy Utilization Product Quality and Safety
Customer Relationship
Table Note: Topics of Material Impact Management
Supply Chain Security
Intelligent Manufacturing
and Lean Management
Climate Change Response R&D and Innovation Party-Building Leadership
Energy Utilization Product Quality and Safety Anti-Commercial Bribery and
Anti-Corruption
Supply Chain Security
Full-Lifecycle Green Solutions
Compliance Operation and Risk Assessment Results of Topic Materiality
Management
Circular Economy Customer Relationship
Management The Company comprehensively summarizes the impacts, risks and opportunities of material topics, and discloses relevant management actions and
Data Security and Privacy effectiveness in the report. For financially material topics, the Company focuses on disclosure in accordance with the four-element framework of
Environmental Compliance Protection
Employees Governance, Strategy, Impact, Risk and Opportunity Management, and Indicators and Targets.
Management
Sustainable Development
Pollutant Emission and Waste Intelligent Manufacturing and Governance
Treatment Lean Management
Environmental Compliance Management, Pollutant
Due Diligence
Emission and Waste Treatment, Water Resource
Water Resource Utilization Industrial Cooperation and
Industry Development Utilization, Circular Economy, Full-Lifecycle Green
Stakeholder Communication Climate Change Response
Impact Materiality
Solutions
Ecosystem and Biodiversity R&D and Innovation
Conservation Rural Revitalization Employees, Industrial Cooperation and Industry
Anti-Monopoly and Fair Product Quality and Safety
Development
Competition Supply Chain Security
Social Welfare Anti-Commercial Bribery and Anti-Corruption,
Customer Relationship Management
Compliance Operation and Risk Management,
Stakeholder Communication, Due Diligence, Party-Build-
ing Leadership
Assessment of Financial Materiality
The Company assesses the financial materiality of sustainable development-related topics from the perspectives of the likelihood of occurrence and the
degree of financial impact, over three time horizons: short-term (within 1 to 2 years inclusive), medium-term (3 to 5 years inclusive), and long-term (more than
Intelligent Manufacturing and Lean Management
In the specific analysis process, the Company sets judgment criteria for the degree of financial impact based on historical pre-tax profits, analyzes the Revitalization, Social Welfare, Sustainable
Energy Utilization
likelihood of occurrence and the degree of impact on financial expectations of risks and opportunities associated with each topic in the short, medium and Development Governance, Anti-Monopoly and Fair
Data Security and Privacy Protection
long term, and ranks the financial materiality of the 25 topics by referring to expert opinions. The list of financially material topics is derived based on the set Competition
financial materiality threshold.
Financial Materiality
Integri-
ty-Based
Party-Building Leadership
Standardized Governance
Prudent Operation
Risk Management
Data Security and Privacy
Protection
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Party-Building Leadership the Shareholders’ Meeting, the Board of Directors, and the
Audit Committee
Management, and formulated systems including the Rules of
Party Organization Development
Procedure for the Shareholders’ Meeting and the Rules of
Procedure for the Board of Directors. The systems clearly define
Shareholders’ Meeting Strategy Committee
the boundaries of rights and responsibilities between the
The Party Branch of Farasis Energy (Ganzhou) Co., Ltd. was established in 2011 and was upgraded to a Party Committee in June 2023. The Party Committee has Shareholders’ Meeting, the Board of Directors, and the Manage-
five subordinate Party Branches and one General Party Branch (which has three subordinate Party Branches), and is equipped with relevant institutions ment, and establish a fair and scientific decision-making mecha-
including the Labor Union, the Communist Youth League Committee, the Women’s Committee, and the Care for the Next Generation Work Committee. The nism. Except for the Strategy Committee, all special committees
Party Committee of the Company has strengthened the three-level Party-building organizational structure of "Party Committee + General Party Branch + of the Board of Directors are composed of a majority of indepen- Board of Directors Nomination Committee
Party Branch", and implemented the "two-way entry and cross appointment" between the leading bodies of the Party organizations and the operation and dent directors who serve as conveners, which effectively ensures
management leading bodies. In 2025, the Party Committee of the Company has seven Party Committee members, and the Company has a total of 113 Party the professionalism and independence of the operation of the
members (including two probationary Party members), with a total of 18 active applicants for Party membership reserved. Board of Directors.
Remuneration and
Evaluation Committee
"Four Must Talks and The hotline "Contact the Party Organization for Issues" has been launched, and more than 30
Five Must Visits" suggestions and opinions have been received, with 100% closed-loop implementation. During the reporting period, the Company:
Held meetings of the Board of
Infrastructure The Labor Union of Farasis Energy has taken the lead in building a staff home and a staff book house Directors A 100% attendance rate of Board members;
Construction for employees.
Held special meetings of
independent directors
Held meetings of the Audit Independent directors accounting for 2/3 of the
Committee Audit Committee;
General CPC Branch CPC Branches CPC Committee Members CPC Members
Held meetings of the Nomination Independent directors accounting for 2/3 of the
Committee Nomination Committee
Held meeting of the Remuneration Independent directors accounting for 2/3 of the
and Evaluation Committee Remuneration and Evaluation Committee.
Party-Building Integration Activities
Board Diversity
The CPC Committee of the Company has built a Party member activity room in accordance with the "six haves" standard, and set up 38 "Party Member Pioneer The Company attaches importance to the diversity construction of the Board of Directors. The members of the Board of Directors have profound professional
Posts" and 6 "Party Member Responsibility Zones" in the production workshops. A total of 125 key tackle projects have been promoted throughout the year, knowledge and management experience in the industry, and the diversity characteristics include but are not limited to gender, ethnicity, nationality, cultural
helping the enterprise save more than 75 million yuan in costs. In addition, the Party Committee of the Company has set up a "Provincial Party Representative and educational background, professional experience, skills, age, etc. In 2025, the Company issued the Board Diversity Policy, which incorporates diversity
Studio", which is rooted in the research of lithium-ion batteries, completed the development of 48 types of cell materials, provided technical solutions for 25 (including industry experience and background such as climate change response, risk management, and sustainable development management) into the
product projects, and achieved an 8-12% reduction in material costs. Fifteen invention patents for technologies have been awarded. At the same time, three appointment considerations. The policy ensures that diverse visions and viewpoints are brought to senior management decision-making, and guarantees the
Party member technical tackle groups for cell research and development, pack research and development, and special improvement have been established to scientificity and preciseness of decision-making through a reasonable composition of Board members.
continuously promote the production and development of the enterprise.
Standardized Governance
Female
Person Bachelor’s Degree Doctoral Degree
Person Person
Improved Governance System Master’s Degree Bachelor’s Degree
Male Female Person Master’s Degree
Farasis Energy (Ganzhou) Co., Ltd. strictly abides by the laws and regulations including the Company Law of the People’s Republic of China, the Securities Law
Person Male Doctoral Degree
of the People’s Republic of China, the Guidelines for the Governance of Listed Companies, and the Rules for the Listing of Stocks on the Science and Technolo-
gy Innovation Board of the Shanghai Stock Exchange. The Company has established a clear-cut and mutually restrictive governance structure composed of
Board Composition
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Board Effectiveness Minority Shareholder Rights Protection
To ensure the effectiveness of the Board of Directors, the Company has established a board performance evaluation mechanism and formulated the In 2025, the Company held 5 general meetings of shareholders. The Company fully protects
Remuneration Management System for Directors and Senior Management. The Remuneration and Assessment Committee formulates remuneration plans or the legitimate rights and interests of shareholders, especially minority shareholders, and
schemes for directors and senior management and conducts annual performance evaluations of the Board members and senior management of the Compa- has formulated and issued the Related Party Transaction Management System to ensure
Shareholders’
ny. The results of performance evaluations serve as an important basis for the remuneration and other incentives of senior management. that transactions are priced fairly, reviewed in compliance and disclosed in a standardized Meeting
manner, so as to prevent related party transactions from harming the interests of the
In 2025, the Company revised the Independent Directors Working System, which clearly stipulates the qualification requirements and independence criteria
Company and shareholders. Meanwhile, the Board of Directors fully listens to the opinions
for independent directors. The system requires independent directors to conduct annual self-evaluation of their independence. The Board of Directors
and suggestions put forward by independent directors on behalf of minority shareholders
evaluates the serving independent directors annually and issues a special opinion, which is disclosed together with the annual report.
in the decision-making process, and no decision that harms the interests of minority
shareholders has been made.
Investor Rights Protection
The Company has formulated and implemented the Investor Relations Management System and the Information Disclosure Management System in strict
Prudent Operation
accordance with the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China, the Guidelines for Investor Relations
Management of Listed Companies and other laws and regulations. The Company protects investors’ right to know and participate in major corporate matters
and safeguards the interests of minority investors.
Corporate Compliance Management
Farasis Energy (Ganzhou) Co., Ltd. has formulated and issued a series of internal systems including the Compliance Guidelines of Farasis Energy. These
Compliance Information Disclosure
systems have defined the concepts of corrupt practices, fraudulent practices, collusive practices, coercive practices, obstructive practices and sexual harass-
ment practices. They have also specified detailed compliance conduct guidelines in the aspects of upholding integrity and compliance, maintaining fair
competition, preventing corruption and bribery, prohibiting insider trading, avoiding conflicts of interest, safeguarding commercial secrets, product control
The Company safeguards shareholders’ right to know and fulfills its information disclosure obligations in accordance with the law, ensuring that information and quality safety.
disclosure is true, accurate, complete and timely. Through holding performance briefings, participating in investor exchange meetings, receiving investor
visits, and utilizing multiple channels such as the Shanghai Stock Exchange Interactive Platform, investor hotlines and email addresses, the Company The Company conducts investigations on major compliance risks every year and promptly identifies external risk early warning signals. Compliance risk
maintains efficient communication with investors concerned about the Company’s development and continuously improves the transparency of information identification is mainly derived from internal compliance evaluations, employee consultation feedback and external customer requirements. In the initial stage
disclosure. In 2025, the Company held 7 public online investor exchange meetings and responded to 312 investor inquiries via the Shanghai Stock Exchange of compliance evaluation, the compliance liaison persons for each special item are responsible for collecting and sorting out the laws, regulations and
Interactive Platform. standards related to each special item, identifying the compliance obligations related to the Company, and preparing the List of Legal and Regulatory Obliga-
tions and Other Requirements accordingly. In accordance with the provisions of the Management Procedures for Compliance Obligations and Compliance
Evaluation, the Company organizes relevant departments to conduct comprehensive compliance evaluations related to EHS, labor and employment, informa-
tion security, intellectual property rights and energy management every year. The joint responsible departments jointly identify the relevant legal and
regulatory obligations, and the responsible departments conduct continuous rectification for the items to be improved. In addition, the Company actively
Investor Communication issues the latest laws, regulations, standards and policies issued by state organs through the Compliciency Lecture - New Regulation Express on the OA
Channels system, popularizes compliance knowledge to all employees and customizes training content according to different responsibilities. The Company has also
established a legal and compliance resource database and conducted in-depth sharing of legal and compliance knowledge.
Official website of the
Company
Shanghai Stock Exchange
Interactive Platform
Investor hotline
Investor email address
Investor research activities
Performance briefings
Periodic reports
Roadshows and reverse
roadshows.
Farasis Energy 2025 Semi-Annual Collective Investor Meeting
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Tax Payment in Accordance with the Law Whistleblower Protection
The Company has established diverse, independent and unimpeded reporting channels to accept complaints or reports of suspected violations, violations of
To ensure the accuracy of tax declaration, the timeliness of tax payment and the compliance of
laws and crimes from employees, partners (customers, suppliers) and the public around the clock. These channels are disclosed to internal and external
policy application, the Company has established a tax asset sharing center to coordinate and
During the reporting period, stakeholders through various means such as the Company’s official website and special training. Meanwhile, the Company has set up a special reward fund to
manage the tax affairs of the Company and its affiliated (parent, subsidiary and sub-subsidi-
reward whistleblowers whose reports are verified to be true and help recover direct losses of the Company. Priority and preferential treatment are provided to
ary) companies at all levels. The Company has formulated internal tax control and manage- The Company’s tax payment
partners who take the initiative to report violations.
ment systems including the Tax Management System, the Detailed Rules for the Implementa- credit rating was Grade
tion of Related Transaction Management and the Invoice and Receipt Management System.
Through continuous tax training, the Company ensures that the team keeps abreast of the
latest tax policies, regularly evaluates the performance of the requirements of national tax laws Reporting Address
and regulations, internal tax management systems and other requirements involved in the
Company’s daily business activities, proactively identifies and manages tax risks, promptly Audit and Supervision Department, West Side of 5th Floor, Administrative Building, Jinling West Road, Ganzhou Economic and Technological
Development Zone, Jiangxi Province
rectifies existing problems, optimizes tax compliance processes and reduces tax risks.
No major tax violation cases occurred within the
The Company fulfills its tax payment obligations and truthfully pays taxes in accordance with Company in 2025.
the laws and tax provisions of various countries. It contributes to local development and social
Reporting Hotline
benefits through compliant tax payment. In 2025, no major tax violation cases occurred in the
Company.
Anti-Monopoly and Fair Competition Reporting Email
fnlianjie@farasisenergy.com.cn
The Company has revised and improved the Compliance Management Measures for Anti-Monopoly and Anti-Unfair Competition, added anti-unfair competi-
tion contents and provided risk prompts for various typical unfair competition acts in commercial activities to enhance the risk prevention effectiveness for
the front-line business. During the reporting period, no relevant lawsuits or administrative penalties occurred in the Company.
Written Reporting
Report boxes for discipline inspection and supervision at each base
Anti-Commercial Bribery and Anti-Corruption Ganzhou Base: Entrance and inside the factory area of Farasis Energy (Ganzhou) Co., Ltd., Jinling West Road, Ganzhou Economic and Techno-
logical Development Zone, Ganzhou City, Jiangxi Province
Ganzhou New Energy Base: Entrance and inside the factory area, No. 1 Fenglin Avenue, New Energy Technology City, Ganzhou Economic and
The Board of Directors and its Audit Committee serve as the leading body for the Company’s anti-fraud work, providing guidance and oversight for all Technological Development Zone, Ganzhou City, Jiangxi Province
anti-fraud initiatives. The Audit and Supervision Department functions as the permanent department responsible for executing anti-fraud work across the Zhenjiang Base: Entrance and inside the factory area, No. 69 Hengshan Road, New District, Zhenjiang City, Jiangsu Province
Company and its branches and subsidiaries, and its department head reports to the Board of Directors and the Audit Committee.
Guangzhou Base: Entrance and inside the factory area, No. 998 Zhiming Road, Jiufo Subdistrict, Huangpu District, Guangzhou City, Guang-
dong Province
The Company has formulated and issued a series of systems including the Anti-Fraud Management System, Accountability Regulations for Violations of
Discipline, and Anti-Bribery Compliance Measures. It requires all employees to sign integrity agreements and proactively declare conflicts of interest to
standardize employee conduct, explicitly prohibit any form of bribery and corruption that damage the legitimate economic interests of the Company or seek
improper economic benefits, and prevent potential risks of bribery and improper interest conveyance. The Company evaluates reported clues received, and forms a special investigation team
for clues with clear facts of violations of laws and regulations to carry out investigations. It Acceptance and Registration
In terms of supplier management, the Company has updated and revised the Supplier Code of Conduct, requiring suppliers to sign the Supplier Integrity clarifies operational specifications for each link from acceptance and registration,
Commitment at the access stage, conducting regular supply chain due diligence, and incorporating indicators such as business ethics into the assessment preliminary verification, case filing and investigation to result feedback and filing, Preliminary Verification
requirements for supply chain sustainable development management as key audit indicators. completes fact verification within the specified time limit and feeds back the handling
results to whistleblowers. The Company has formulated and issued the Reporting and Case Filing and Investigation
Whistleblower Protection Regulations, which strictly keep confidential the identity of
whistleblowers, reporting content and investigation process, explicitly prohibit any form
Result Feedback
of retaliation, and classify such acts as major disciplinary violations. Those who commit
retaliation shall be subject to punishment such as education, warning or dismissal
Filing and Preservation
according to the seriousness of the circumstances, and legal liability shall be pursued in
accordance with the law if serious consequences are caused.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Integrity Culture Construction Risk Management
The Company formulates an annual audit plan for routine audits every year, and conducts publicity and dissemination through diversified and normalized The board of directors of the Company serves as the highest governance body for risk management, which is responsible for setting the overall objectives of
means such as issuing holiday initiatives, employee violation and disciplinary action decisions, and integrity publicity posters through office automation risk management and supervising the implementation of risk governance. Under the governance of the board of directors, the Company has established a
systems such as OA. Meanwhile, the Company organizes targeted special integrity training to strengthen the performance and responsibility requirements of "three lines of defense" risk governance architecture. Meanwhile, the Company regularly or irregularly collects internal and external information for risk
key departments in terms of integrity and compliance. For partners such as contractors and suppliers, the Company calls on partners to earnestly fulfill their identification, judges whether the risks are within the acceptable range through multi-dimensional analysis, and carries out all-round closed-loop manage-
integrity commitments by regularly sending notices on prohibiting gift-giving during holidays, signing supplier integrity commitments, and conducting ment for the evaluated important risks.
supply chain due diligence.
First Line of Defense: Business Departments
Case
Managers of business departments are the direct bearers and managers of risks and are responsible for identifying the businesses under their
jurisdiction.
Farasis Energy (Ganzhou) Co., Ltd. Holds Supply Chain Anti-Corruption Thematic Education and Oath-Taking Conference
In May 2025, Farasis Energy (Ganzhou) Co., Ltd. held a supply chain
anti-corruption thematic education and oath-taking conference at its Second Line of Defense: Risk Management Department
Ganzhou base. The conference focused on the Company’s key
arrangements for anti-corruption in the new stage of strategic
development, emphasizing that the supply chain must take discipline Responsible for the identified risks and the follow-up response, rectification and follow-up supervision.
as the foundation to consolidate development fundamentals and build
a three-dimensional integrity risk prevention and control system of
"system + ideology + action". The conference regarded integrity
practice as the lifeline for the stable operation of the supply chain and
required all employees to abide by the guidelines and strictly Third Line of Defense: Internal Audit Department
implement the systems. All employees of the Supply Chain Manage-
ment Center collectively signed the Anti-Corruption Commitment and
took an oath to internalize integrity contracts in mind and externalize Conduct inspection and audit on the risk management process.
them in action, so as to block the breeding ground of corruption from Farasis Energy organized supply chain anti-corruption thematic
the source and provide a solid disciplinary guarantee for the education and oath-taking conference.
Company’s high-quality development.
The management procedures for emerging risks follow the basic risk management procedures. If the identified risk is determined as an emerging risk in the
risk identification process, the Company will carry out risk management based on the specific risk scenario and comprehensive consideration of business
characteristics.
In addition, the Company has joined external industry alliances such as the Corporate Anti-Fraud Alliance and the Sunshine Integrity Alliance to strengthen
the exchange and learning of integrity compliance experience.
Risk Items Risk Points Risk Scenarios Countermeasures
The Company’s products trigger further Track relevant regulations of target
A large number and various
compliance risks due to non-compliance markets and conduct internal
Product Access types of overseas market
with local regulations. compliance assessments in a timely
access regulations.
manner.
Continuous geopolitical
conflicts and frequent Assess policy risks and take timely
Tariff sanctions, anti-dumping and
sanctions by various countries, actions in conjunction with relevant
Geopolitics countervailing investigations.
thereby affecting the stakeholders to respond.
The Company has joined the Corporate The Company has joined the Sunshine Integrity Company’s operation and
Anti-Fraud Alliance as a member unit. Alliance as a member unit. business development.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Data Security and Privacy Protection Description of Timeframe Scope of
Type Financial Impact Response Measures
Potential Risks of Impact Impact
Governance Avoidable compliance
risks and penalty 1) Policy level: The Company has issued the
Risk of leakage Leakage of core Information Asset Security Management
expenses; meanwhile,
of core technical data Procedures to strictly stipulate data classifica-
The Company has constructed a three-level information security governance architecture of "management level - overall planning level - implementation and differentiated
technical data/ weakens core Short-term, Upstream, own tion and protection measures.
landing level". The highest governance body is the Information Security Management Committee, which is headed by the president and consists of senior advantages can be
intellectual competitiveness and medium-term, operations,
managers and relevant department heads. The committee has formulated and issued the Information Security Management Manual as a programmatic established through
property rights leads to a decline in long-term downstream 2) Technical level: The Company has launched a
document, which clearly specifies the information security policies, strategies and objectives to provide guidance and basis for the Company’s information safety and compliance
and trade market share and terminal anti-leakage system, and all data have
security work. to enhance customer
secrets operating revenue. been encrypted to effectively ensure data
stickiness and market
The Company takes the initiative to align with relevant domestic and foreign standards and requirements to improve the information security management security.
share.
system, and takes the initiative to carry out information security certification work to enhance information security management and guarantee capabilities.
During the reporting period, the Company has successfully passed the TISAX Information Security Certification, the National Information Security Class III
Level Protection Certification and other certifications. It may lead to system
vulnerabilities,
Meanwhile, the Company focuses on the cultivation and capacity building of information security culture, actively participates in external training, industry Information Protection Management System
business interrup-
conferences and other activities to learn and understand the latest industry requirements and best practices, and establishes an internal knowledge sharing to stipulate the management of the full data
tions or data leakage,
mechanism to empower the capacity improvement of internal employees. At the same time, the Company focuses on cultivating and establishing the informa- Risk of leakage It may lead to fines or life cycle;
resulting in Long-term
tion security awareness of all employees, and creates an information security atmosphere of full attention and active participation through regular broadcast- or abuse of increased operating Upstream, own
emergency response 2) Meanwhile, data has been encrypted and
ing of information security promotion videos, special information security training for new employees and other methods. customer costs, affecting orders operations,
costs, regulatory stored on servers with minimized permissions,
privacy data and reducing downstream
fines and reputation and firewalls, intrusion detection and
operating revenue.
losses, and affecting prevention systems (IDS/IPS) have been
customer contract deployed to ensure the security of networks,
renewals and new servers and data.
order acquisition.
Management
Level
Overall Planning Impact, Risk and Opportunity Management
Level
The Company has established a systematic risk assessment mechanism covering multiple dimensions of assets, threats and vulnerabilities. The Company
classifies risk levels and implements graded disposal in accordance with the assessment results. A comprehensive emergency response mechanism has been
established. The Company has formulated the Information Security Incident Management Procedures and the Information Security Business Continuity
Implementation and Landing Management Procedures to clarify the emergency handling processes and measures for unexpected incidents. The Company has formulated emergency plans
Level for data or privacy leakage and conducted emergency plan drills to improve the response and handling capabilities of information security emergencies.
In addition, the Company has formulated and issued the Vulnerability and Patch Management System to regulate vulnerability management. The Company
conducts regular system vulnerability scanning and detection; the discovered vulnerabilities are strictly handled in accordance with the principle of "mandato-
Strategy
ry patching for medium and high risks" to eliminate potential safety hazards in a timely manner.
To strengthen the assessment and management of information security risks, the Company has formulated and issued the Information Security Risk Assess-
ment Management Procedures. The Company organizes and conducts annual risk assessment and analysis, and collaborates with all departments and bases Infrastructure Construction
to carry out workflows including risk identification, status analysis, risk evaluation and analysis, risk treatment, residual risk disposal and risk control. A formal
risk assessment report is generated upon completion of the process.
To further strengthen information security protection capabilities, the Company has deployed multi-layer equipment including firewalls, anti-virus systems,
bastion machines, IPS and WAF to build an in-depth defense system covering the entire network, servers and applications. The Company has strengthened
the information security infrastructure of the Company from physical, network and software aspects to build a solid security line for all links.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Physical Network Software
Information Security Audit
Level Level Level The Company attaches great importance to information security audit and has formulated and issued internal documents such as the IT Audit Management
System to clarify the scope, requirements and processes of IT audit. The Company conducts IT audits through a combination of internal and external audits
The Company has formulated a physical The Company has built a multi-layer network Anti-virus software and file encryption every year and forms IT audit reports to clarify rectification measures and plans. During the reporting period, the Company successfully passed various
security management procedure to protection system. Security equipment such as system are deployed on terminals to internal and external audits such as listed Company financial audits, TISAX audits, customer access audits and internal information security audits.
define clear security boundaries. Access firewalls, IPS, WAF, online behavior manage- achieve real-time protection. Meanwhile,
control and video surveillance are ment and bastion machines are deployed at the a graded data backup strategy is
installed in key areas, and 24-hour boundary to achieve access control, attack formulated according to the importance
security personnel are arranged to protection and behavior auditing. The internal of the system, and key data are backed Information Security Culture Construction
strictly control the entry and exit of network is divided into office network, up regularly to ensure rapid recovery in
personnel and visitors, so as to ensure production network and OT network, and case of accidents and guarantee The Company has established an information security issue feedback and reporting mechanism covering all stakeholders with convenient channels and
the physical environment security of network isolation is implemented to prevent business continuity. standardized disposal processes, which is publicized through the official website to ensure that relevant parties can timely and standardly feedback informa-
information assets. the spread of risks and ensure the independent tion security hazards and continuously improve information security risk prevention and control capabilities.
and stable operation of each network.
Information Security Issue Feedback Channels
Information Security Protection Email: infosec@farasisenergy.com.cn Tel: +86 0793-7329933
In terms of customer privacy protection
The Company has formulated and issued the Data Protection Management System to clarify the requirements for hierarchical and classified data
management. Customer privacy data are encrypted and de-identified, and data extraction, interaction and encryption are strictly managed through
Indicators and Targets
internal control procedures and approval authority restrictions to effectively protect customer privacy and data security.
To further track and manage the effectiveness of data security and privacy protection management and practices, the Company has set a series of indicators
for control and regularly reviews the targets and work progress to improve performance. During the reporting period, no data security or customer privacy
information leakage incidents occurred.
In terms of supplier information security management Indicator Unit 2023 2024 2025
Number of customer information leakage incidents case 0 0 0
The Company incorporates data security capability into the core access standards for third-party cooperation. The Company has formulated and
issued documents such as the IT Supplier Information Security Management System, established a supplier access security assessment and annual
information security evaluation mechanism, requiring comprehensive security capability assessment and compliance due diligence on suppliers. The Amount involved in data security incidents ten thousand yuan 0 0 0
Company also promotes and explains the Company's information security strategies and requirements, and requires confidential suppliers to sign
Confidentiality Agreements. The Company clearly requires the consent of stakeholders for the processing, sharing and retention of confidential
Proportion of operating sites with TISAX certification % 100 100 100
information to prevent illegal access or disclosure of third-party data and ensure that IT risks are under control.
Number of information security emergency drills* session / / 2
In terms of confidential information management
Number of data security and privacy protection training sessions* session / / 5
The Company has formulated and issued the Personal Information Protection Management System. The processing of employees’ personal informa- Annual information security training coverage rate* % / / 100
tion must be legal and compliant throughout the process, and the processing of the Company’s confidential information must go through a complete
authorization process and obtain the approval of the person-in-charge of the department to which the data belongs. In addition, through the
Information Security Incident Management Procedures, the full life cycle management process of confidential information leakage incidents is *Note:
clarified. If a confidential information leakage incident occurs in violation of regulations, the information security team will analyze and evaluate the
The indicators above are newly added in 2025. No relevant statistics were collected in 2023 and 2024, hence marked as "/".
incident level and initiate the corresponding level of disposal and internal and external reporting processes.
Green
Development
Climate Change Response
Environmental Compliance
Pollutant Emission and Waste
Treatment
Resource Utilization
Ecosystem and Biodiversity
Conservation
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Climate Change Response Risk Type Description of Potential Risks Financial Impact
Time Horizon
of Impact
Scope of
Impact
Response Measures
Governance The Company’s domestic production
bases are located in Ganzhou,
Damage to
infrastructure, Strengthen inspection of workshops
Zhenjiang and Guangzhou, which are increased and equipment, manage electricity
exposed to extreme weather impacts equipment consumption and promote awareness
The Company accelerates the development of its capacity to address climate change, systematically identifies and manages climate-related risks and to varying degrees. maintenance and of energy conservation and consump-
opportunities that may affect its business, and establishes a three-level governance structure consisting of "Leadership Level – Management Level – energy costs, and tion reduction to improve the efficiency
Extreme high temperatures or
Implementation Level" to orderly advance the governance and practices of climate change response-related topics. Meanwhile, the Company continuously increased of energy use.
abnormal climate conditions
expenditure on
improves its working mechanisms for carbon emission statistics, accounting, monitoring, management and information disclosure. With reference to the increase equipment wear and Strengthen safety risk management
employee health and
international standards of ISO 14064/14068, the Company has formulated management systems for carbon inventory, reporting and carbon neutrality, and Physical operational energy consumption. and control, hidden danger investiga-
safety protection will Upstream,
Risk – Short-term, tion, monitoring and early warning of
incorporated indicators such as energy conservation and consumption reduction, ISO 14064 certification and zero-carbon factory certification into the Typhoons, floods and other disasters lead to higher Own
Medi- weather conditions such as typhoons
Extreme may cause water damage to facilities operating costs. Operations,
annual performance appraisal indicators of relevant departments. um-term, and precipitation, implement flood
and equipment, potentially leading Downstream
Weather Restricted prevention measures, improve the
to production suspension,
production capacity emergency management mechanism,
transportation disruption and other
and supply chain and enhance the capacity for
Leadership Level risks.
disruptions will emergency response to extreme
Board of Directors and its Special Typhoons, precipitation, high affect production weather and major natural disasters.
Committees As the supreme decision-making body for ESG affairs, the Board of Directors and its Special Committees arrangements and
temperatures and other conditions
product delivery, Establish a diversified supply chain
make decisions on major matters related to the Company’s climate change response, and regularly hear tend to trigger hidden dangers of
layout to ensure the reserve of key
work reports from the ESG Management Committee. infectious diseases such as dengue resulting in reduced
operating revenue. materials and rationally arrange
fever.
transportation routes and plans.
Strengthen the assessment and
Management Level response to water use safety risks,
ESG Management Committee implement water resource manage-
Responsible for evaluating and reviewing matters related to the Company’s climate change response, ment plans, and set water conservation
targets.
including the adequacy of resources, compliance, effectiveness of procedures and overall performance of
the Company in addressing climate change, and providing recommendations to the Board of Directors Salinization of groundwater may Carry out practices of water recycling
trigger the risk of water shortage. Restricted and reuse, enhance the research and
and its Special Committees. Physical Upstream,
The upstream suppliers and the production capacity development of water-saving
Own
Risk – Sea Company’s own production rely on Long-term technologies and the application of
and reduced Operations,
Level Rise water resources to a certain extent, operating revenue. water-saving equipment to reduce
Downstream
and water shortage will lead to operational vulnerability and water
Implementation Level supply chain disruptions. costs.
Sustainable Development
Department Comprehensively consider factors such
Responsible for formulating development plans related to climate change response, establishing working
as extreme weather and water resource
mechanisms for target setting and tracking, as well as risk and opportunity management and evaluation supply to ensure the long-term
mechanisms, and submitting such documents to the ESG Management Committee for review and sustainability and resilience of project
site selection decisions.
reporting; formulating annual work plans for climate change response, leading and coordinating relevant
departments to set up special working groups to implement various measures such as carbon inventory,
carbon verification, energy conservation and carbon reduction.
Strengthen organized carbon emission
management and promote the
establishment of sound relevant
China’s energy policy has shifted
Transition working mechanisms to ensure
from dual control of energy
Risk – Increase the Short-term, compliance with requirements;
Own
Strategy
consumption to dual control of
Company’s Medi- Conduct carbon inventory, strengthen
Policy and carbon emissions, while imposing Operations
compliance costs. um-term, carbon emission management,
higher requirements on product
Legal Risk implement measures such as energy
carbon footprint management.
conservation, carbon reduction and use
Farasis Energy (Ganzhou) Co., Ltd. attaches great importance to the management of climate-related risks and opportunities. The Company takes the initiative of clean energy to facilitate the
to study and understand relevant policies, regularly identifies climate-related risks and opportunities, and develops response measures. Through standard- transformation of the energy structure.
ized management, the Company aims to mitigate risks, achieve sustainable development, reduce its impact on the climate and environment in the process of
production and operation, and adopt effective measures to manage climate risks.
Note: The Company defines the time horizon as follows: short-term (1 to 2 years inclusive), medium-term (3 to 5 years inclusive) and long-term (more than 5
years).
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Time Horizon Scope of
Risk Type Description of Potential Risks Financial Impact Response Measures
of Impact Impact
Analysis of Key Transition Opportunities and Response Measures
Conduct research on domestic
and foreign policies and actively Climate-Related Time Horizon Scope of
participate in the formulation of Type Financial Impact Response Measures
Increase investment in Opportunities of Impact Impact
relevant domestic and
product carbon footprint
Influenced by international policies international standards;
management, supply chain
Transition of the EU, the United States, Europe
compliance, digital Upstream, Establish special and cross-de- Strengthen value chain collaboration,
Risk – and other regions, exports of battery Short-term,
transformation and other Own partmental working groups to work with upstream and downstream
products are restricted, and higher Medi- The external environ-
Policy and aspects, leading to higher Operations, promote the improvement of partners to promote the construction
requirements are put forward for um-term, ment, including battery The application of renewable
operating costs;Non-com- Downstream relevant management systems and large-scale application of the
Legal Risk product carbon footprints and recycling, restricted use and recycled materials helps
pliant products will result in and working mechanisms, battery recycling system, conduct R&D
supply chains. of hazardous reduce production and
restricted exports and ensure the implementation of on recycled materials and related
substances, and rising operating costs; Upstream,
reduced operating revenue. relevant work requirements, and Resource Medi- technologies, reduce reliance on raw
prices of raw materials Own
guarantee that products meet Developing alternative um-term, materials, and enhance supply chain
Efficiency such as lithium metal, Operations,
market access criteria. products such as Long-term resilience;
imposes higher Downstream
transformation sodium-ion batteries
Accelerate the R&D and application of
requirements on diversifies the product
recycling and renewable materials,
products and business portfolio and improves
Increase investment in R&D, develop alternative product lines such as
Increase R&D investment, models. sodium-ion batteries, and improve
Higher requirements are imposed on procurement, equipment
promote the application of product competitiveness.
manufacturing, production and renovation and other costs
low-carbon materials and
product R&D in terms of low-carbon for low-carbon materials
renewable recycled materials,
materials, renewable and recycled and technologies;
Transition and develop green and
materials, manufacturing processes,
Higher R&D investment in Upstream, low-carbon products meeting
Risk – recycling and circular utilization;
technologies improving Own market demands;
Long-term
Technology Extreme climate changes affect the battery climate adaptability, Operations,
Downstream Strengthen R&D collaboration, Direct procurement of green
Risk stability of power batteries, raising limited battery stability may Gradually increase photovoltaic installed
jointly conduct technological The capacity for clean power and self-built
requirements for R&D and trigger product recalls and capacity, implement clean production
research with upstream energy accommodation photovoltaic power
application of technologies other incidents, increasing measures, strive for government
suppliers and downstream on the grid side is generation directly reduce
enhancing the climate adaptability of operating costs and subsidies and apply for green financing;
customers to improve product further improved, and energy costs, and also help
batteries. reducing operating
stability and performance. the stability and lower carbon compliance Actively participate in projects such as
revenue.
tradability of green costs; self-built photovoltaic Upstream, direct green power connection and
Energy power supply are projects may obtain Short-term,
Own formulation of international carbon
enhanced; government subsidies and Medi-
Increase operating costs Source Operations, emission standards;
tax incentives; um-term,
including carbon Downstream
The technology and Strengthen energy management and
accounting and carbon market for distributed Clean production helps clean production, implement compre-
reduction in carbon Strengthen supply chain carbon renewable energy have create "zero-carbon" and hensive energy conservation and carbon
emission management and
Internal and external policies as well emission management, matured, facilitating the "low-carbon" products, reduction, and take the lead in adopting
reduce supply chain product
as overseas downstream customers energy structure enterprise’s energy enhances product market new technologies, processes and
transformation, product carbon footprints; transformation. competitiveness, and
have raised attention and facilities.
requirements on the Company’s carbon footprint improves profitability
Promote energy structure
carbon emission management, management and
Transition transformation, increase the
energy structure transformation and certification; Upstream, proportion of clean energy used
Risk – Short-term,
product carbon footprints, with Own in production, implement green
Excessively high product Medi-
Market preferences shifting toward green Operations, electricity/green certificate
carbon footprints will push um-term,
and low-carbon products; Downstream procurement, carry out
Risk up product prices, weaken
energy-saving technological Emerging industries such as
Affected by external factors such as market competitiveness, The development of
humanoid robots, eVTOL
Rely on the experience of successfully
transformation and carbon
policies and market supply-demand reduce operating revenue emerging industries and
and unmanned aerial
applied product projects, increase R&D
reduction initiatives, establish a
relations, prices of green certificates and lower profitability; the energy transforma-
vehicles, as well as
investment to deepen market
product life cycle management tion of traditional penetration, expand technological and
and other products rise. traditional industries such as
Regulatory pressures on system to lower product carbon industries create a product advantages, and strengthen
the upstream supply chain footprints. ships, mining trucks and Own core competitiveness;Leverage the
broad market for power
drive up raw material prices, cranes, represent future Medi-
batteries; Operations, Company’s technological and R&D
increasing procurement Market market growth opportuni- um-term,
Downstream strengths to accelerate the layout of the
costs. Demand is growing for ties and target markets for Long-term
energy storage business, actively
energy storage the Company’s products; participate in energy storage standard
batteries for power formulation and demonstration project
Strengthen sustainable The broad demand in the
Transition Any adverse environmental or stations, commercial construction, and seize market
Harms the Company’s management and information energy storage market helps
Risk – climate-related conduct by the Own and residential opportunities in the energy storage
brand image and credibility, disclosure to maintain brand the Company develop new
Company may damage its reputation Long-term Operations, applications. sector.
Reputa- restricts orders and reputation and safeguard the business growth points.
and drive away investors and Downstream
reduces operating revenue. long-term value of the
tional Risk customers.
enterprise.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Impact, Risk and Opportunity Management Environmental Compliance
The Company strengthens the management of climate-related risks and opportunities. Based on internal and external development environments including
Environmental Compliance Management
the Company’s business conditions and industry background, the Company identifies and assesses climate-related risks and opportunities with potential
impacts on the Company through executive interviews, departmental investigations and expert opinions, and discusses and formulates targeted response
measures. Meanwhile, the Company takes proactive actions in various aspects such as organizational carbon emission management, product carbon
footprint management, energy conservation, emission reduction and consumption reduction, improves relevant management mechanisms, and implements
The Company has established and improved its environmental management system and set up an Environmental Management Committee chaired by the
diverse practices in light of actual business operations to enhance its capacity to address climate change. President as the supreme decision-making body for corporate environmental management, which is responsible for the effective operation of the Company’s
environmental management system. The Company has established a target and indicator monitoring system to supervise the compliance of various environ-
Indicators and Targets mental protection data, and has duly revised and issued the Farasis Energy Environmental Management Statement signed by senior management as a
programmatic document. The Company commits to timely and proactive disclosure of environmental information to the public and active communication and
In accordance with the ISO 14064 standard, the Company has established a greenhouse gas and carbon neutrality management organization with the cooperation with stakeholders to address environmental challenges.
President as the highest leader, and formulated management systems for carbon inventory, reporting and carbon neutrality. Led by the Sustainable Develop- The Company signs annual EHS target responsibility letters with senior management every year, incorporating environmental management indicators such as
ment Department, the Company conducts annual greenhouse gas inventories for Scope 1, Scope 2 and Scope 3, and entrusts an independent third party to compliant discharge of "three wastes" and environmental pollution accidents into the annual performance appraisal of management and relevant responsible
conduct verification to ensure the authenticity and reliability of the Company’s greenhouse gas calculation data. In 2025, the Company’s Ganzhou Base and departments. Meanwhile, the Company has introduced and certified the ISO 14001 Environmental Management System, achieving 100% coverage of environ-
Zhenjiang Base successfully passed the ISO 14064 carbon verification certification. mental management system certification at production bases with stable operation and qualification. The Ganzhou Base and Zhenjiang Base were success-
fully awarded the title of "National-Level Green Factory".
Greenhouse Gas Emissions1 The Company has completed environmental impact assessments for construction projects in strict accordance with laws and regulations including the
Environmental Impact Assessment Law of the People’s Republic of China, implemented the "three simultaneous" system and pollutant discharge permitting
system for construction projects, and formulated the Monitoring and Measurement Management Procedures. All bases conduct regular self-monitoring and
Indicator Unit 2023 2024 2025
outsourced environmental testing as required, and disclose environmental information in accordance with relevant laws and regulations. Benefiting from
effective environmental risk control and a sound environmental monitoring system, the Company is recognized as a non-key pollutant discharge entity.
Total GHG Emissions (Scope 1 + Scope 2) tCO₂e 371657.34 289082.48 278171.25
During the reporting period, the Company complied with environmental protection laws and regulations, with no violations of environmental laws and
regulations and no penalties imposed by competent authorities.
GHG Emissions per Unit Energy Consumption (Scope 1 + Scope 2) tCO₂e / / 2.9
Total Scope 1 GHG Emissions tCO₂e 4328.28 3679.09 5113.22
Direct GHG Emissions per Million RMB Revenue (Scope 1) tCO₂e / /
Obtained environmental management National-level green
Total Scope 2 GHG Emissions (Location-Based) tCO₂e 367329.06 285403.39 273058.05 system certification factories
Total Scope 2 GHG Emissions (Market-Based) tCO₂e 246221.5 265853.66 221150.66
Sites Sites
Indirect GHG Emissions per Million RMB Revenue (Scope 2) tCO₂e / /
Total Scope 3 GHG Emissions tCO₂e 987510.47 841536.69 9387013
Other Indirect GHG Emissions per Million RMB Revenue (Scope 3) tCO₂e / /
GHG Emission Intensity tCO₂e / million RMB revenue 22.61 24.75
Environmental Risk Management and Control
Directly Reduced Scope 1 GHG Emissions tCO₂e 1952.20 649.19 -1434.11 The Company attaches great importance to environmental risk management and control
and has formulated the Procedures for the Identification and Evaluation of Environmental
Directly Reduced Scope 2 GHG Emissions tCO₂e 51176.84 81925.67 12345.34 During the reporting period
Aspects. The Company conducts environmental aspect identification and environmental
risk assessment at least once a year, using a scoring coefficient combined with multi-fac- The environmental risk assessment coverage
GHG Offsets (Scope 1 & Scope 2) tCO₂e / / 46062.62
tor scoring method to evaluate environmental aspects. It also compiles a list and manage- rate of all operating sites reached
Direct GHG Offsets (Scope 1) tCO₂e / / 12950 ment plan for significant environmental aspects to identify and control environmental
risks. Through monthly regular work review meetings and special inspections, as well as
Indirect GHG Offsets (Scope 2) tCO₂e / / 33112.62 cross-checks and on-site audits among subsidiaries (bases), the Company identifies
problems and risks in the implementation process of various departments and carries out
Carbon Emission Reduction Equivalent from Clean Energy Generation tCO₂e / / 18359.89
closed-loop management to ensure that environmental risks are under control. During the
reporting period, the environmental risk assessment coverage rate of all operating sites
*Data Notes:
reached 100%.
Carbon inventory has not yet been conducted at the Guangzhou Base and Ganzhou New Energy Base in 2025. Therefore, GHG emission data for 2023, 2024
and 2025 in this table only cover the Ganzhou Base and Zhenjiang Base. Some indicators in the table are newly added and were not counted in 2023 and 2024,
hence marked as "/".
The increase in Scope 1 GHG emissions is mainly due to the addition of R428A and heptafluoropropane fire extinguishers at the Zhenjiang Base, which have
high global warming potential (GWP) values, leading to a rise in total emissions.
The increase in Scope 3 GHG emissions is mainly attributed to the update of the carbon emission factor for road freight transportation, which was revised
from 0.049 kgCO₂e/t·km (originally from CPCD) to 0.2157 kgCO₂e/t·km [from GHG S3.4 & 3.9 China Road Transport Emission Factors (2024)], representing a
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Environmental Emergency Management Pollutant Emission and Waste Treatment
The Company highly values environmental training and emergency management, and has The Company strictly abides by environmental laws and regulations including the Water Pollution Prevention Law of the People’s Republic of China, the Air
established a four-tier emergency rescue system (employee level, workshop level, Company Pollution Prevention Law of the People’s Republic of China, the Solid Waste Pollution Prevention Law of the People’s Republic of China, and the Noise Pollution
During the reporting period
level, and social forces) and a grid-based unit management system to strengthen the preven- Prevention Law of the People’s Republic of China. It has formulated systems such as the Wastewater Management Regulations, Waste Gas Management
The Company conducted environmental
tion and response to environmental emergencies. For specific scenarios such as chemical Regulations, and Hazardous Waste Management Regulations, set relevant targets, strengthened the daily management of pollution control facilities and
protection emergency drills.
leakage, hazardous waste leakage, industrial wastewater leakage, and environmental pollution equipment, standardized operation files, developed monitoring plans, and conducted regular pollutant monitoring. Every year, the Company entrusts
accidents derived from fires, the Company has formulated the Emergency Plan for Environmen- qualified third-party monitoring institutions to regularly monitor wastewater, waste gas and noise to ensure the accuracy and reliability of monitoring data.
tal Emergencies and the Procedures for Accident Reporting, Investigation and Handling,
sessions In addition, the Company has formulated and implemented an emergency plan for environmental pollution accidents and organized review meetings with
developed training and drill plans, and conducted training and emergency drills in accordance
external experts to ensure the operability and effectiveness of the plan. Each base conducts regular emergency drills to improve the response capacity to
with the plans.
environmental emergencies and minimize or avoid environmental pollution risks.
Environmental Protection Culture Development
The Company integrates the low-carbon concept into daily operation processes, establishes a normalized environmental protection training system, and
incorporates environmental protection laws and waste management requirements into the onboarding training for new employees to ensure that all employ- Waste Gas
ees master the basic knowledge and skills of environmental management, achieving full coverage of environmental-related training. Meanwhile, the Company
has launched courses such as Corporate Environmental Management Training and Environmental Protection on the online learning platform to cultivate
environmental compliance awareness and improve capabilities among all employees, consolidating the foundation of the corporate environmental
protection culture. 2) Major Pollutants: Particulate matter, non-methane total hydrocarbons, sulfur dioxide, nitrogen oxides, etc.
During the reporting period adsorption, activated carbon adsorption, etc.
Organized environmental protection Employees receiving environmen- 4) Treatment Method: Discharged up to standard after treatment by waste gas treatment facilities.
training sessions, tal-related training.
① Sealed Production Line Waste Gas Management: Negative pressure gas collection hoods are installed in partially open areas to prevent
unorganized fugitive emissions of waste gas, and segmented recovery is carried out through pipelines. Most waste gas is recovered by cryogen-
times
ic condensation in the oven section; a small amount of uncondensed NMP is absorbed by water spray. After multiple rounds of spray absorption,
the remaining tail gas is adsorbed by activated carbon and discharged through waste gas pipelines. With the above recovery measures, the
NMP recovery rate exceeds 99%.
Case ② Electrolyte Waste Gas Management in Injection Process: Two-stage activated carbon adsorption is adopted to reduce waste gas emissions.
"June 5" World Environment Day Environmental Training and Publicity Campaign
The Company sets an "Environmental Protection Promotion Month" every year and carries out various environmental protection publicity
activities, providing incentives to employees who participate to stimulate their internal motivation to understand and care about environmental Wastewater
protection. In 2025, the Company conducted low-carbon and environmental protection training for environmental protection management
personnel in various departments, covering environmental protection awareness, solid waste management, wastewater, waste gas and 1) Emission Sources: Production wastewater, domestic sewage, etc.
hazardous waste discharge and disposal management. It encouraged environmental management personnel to apply what they have learned to
daily management. 2) Major Pollutants: COD, SS, NH?-N, TP, TN, suspended solids, etc.
① The production wastewater pretreatment system adopts coagulation sedimentation + air flotation + anaerobic process; the integrated
wastewater treatment system adopts hydrolysis acidification + contact oxidation + MBR process. The treated wastewater is discharged to the
municipal sewage treatment plant through the main outlet up to the discharge standard.
② Wastewater generated from cleaning of ingredient tanks for positive and negative electrode slurry first flows into waste slurry sedimentation
tanks (separate tanks for positive and negative electrodes), then is uniformly discharged through sewage pipelines to the Company’s wastewa-
ter treatment station for treatment, and discharged to the municipal sewage treatment station after meeting standards.
"June 5" World Environment Day Publicity Campaign Solid Waste Knowledge Training
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
General Solid Waste Resource Utilization
Governance
labels. Sign contracts with qualified disposal units to promptly transfer solid waste according to production conditions, and implement
The Company has established an energy management organizational structure consisting of the "President – General Manager of each Base – Functional
leak-proof and spill-proof measures during transportation. Keep full records of the recovery volume of all types of waste to form ledgers and
Departments", and formulated and issued documents including the Energy Management Manual, Control Procedures for Energy Management Measures,
realize full-process traceability.
Energy Operation Control Procedures, and Control Procedures for Energy Monitoring, Measurement, Analysis and Performance Evaluation, so as to standard-
ize and optimize energy and data management processes. In addition, the Company incorporates performance indicators related to energy management,
energy conservation and consumption reduction into the annual performance appraisal indicators of relevant responsible departments and managers.
Furthermore, the Company attaches importance to the cultivation of employees’ awareness and capacity of energy conservation, regularly organizes special
Hazardous Waste training on energy conservation management, actively responds to the call of the National Energy Conservation Publicity Week, and launches activities such
as energy conservation knowledge competitions and the "My Low-Carbon Life" 7-day check-in campaign, integrating energy conservation and carbon
reduction awareness and concrete actions into employees’ daily production and life.
① Special temporary storage warehouses for hazardous waste have been established, all meeting the "four-proof" requirements of windproof,
rainproof, sunproof and anti-seepage. Compliance signs such as zoning plates, information bulletin boards, solid waste pollution prevention
responsibility systems and emergency disposal measures are posted in the warehouses.
② A hazardous waste management plan is formulated based on management ledgers and recent production plans. The ledgers truthfully
record the type, quantity, utilization, storage, disposal and flow direction of hazardous waste, and are managed by dedicated personnel.
Ganzhou New Energy Base Energy Conservation Ganzhou New Energy Base Energy Conservation
③ Containers and packages for hazardous waste, as well as sites generating, collecting, storing, transporting and disposing of hazardous
Knowledge Training Session Knowledge Competition
waste, are equipped with corresponding marks, warning signs and labels in accordance with the law. Labels indicate the category, hazard and
start storage time of the stored waste.
④ Strictly implement the approval procedure for hazardous waste transfer plans and legally operate hazardous waste transfer manifests. During the reporting period, the Ganzhou Base and Zhenjiang Base, which maintain stable operation and hold certification qualifications, were audited to
Transfer plans and electronic transfer manifests are registered through the information system. meet the requirements of ISO 50001:2018 and successfully obtained corresponding certificates. Other bases will also promote relevant certification upon
meeting the certification conditions.
⑤ Establish and improve internal management systems for hazardous waste generators, implement the hazardous waste generation informa-
tion disclosure system, improve relevant archives management systems, and formulate and improve emergency plans for sudden hazardous
waste environmental incidents.
Strategy
The Company continuously promotes energy structure optimization and energy efficiency improvement through technological energy conservation,
management energy conservation, clean energy application and other approaches. Relying on its technological R&D advantages, the Company adopts
Noise
advanced processes and high-efficiency equipment in production line design and continuously optimizes manufacturing processes to achieve energy
conservation at the source. Meanwhile, it builds an intelligent energy management system to tap into the potential of management energy conservation
equipment. building distributed photovoltaic power generation systems and other means. At the same time, it is planning and laying out the construction of an integrated
photovoltaic-storage-charging energy storage power station to drive the green and low-carbon transformation of the energy consumption structure. In
① Cut Off Transmission Path: Install sound insulation covers or closed mechanical sheds for equipment to physically isolate noise sources (e.g., equivalent to a reduction of 18,359.89 tCO₂e of emissions.
set equipment rooms to separate noise-generating equipment); use sound-absorbing materials (e.g., sound-absorbing ceilings) in workshops
to absorb reflected sound waves; construct sound insulation barriers or use green belts as acoustic barriers (e.g., install sound insulation
screens for air compressors, chillers and other equipment near residential areas to reduce adverse impacts).
Impact, Risk and Opportunity Management
② Individual Protection: Provide appropriate personal protective equipment such as earplugs or earmuffs for operators in noise-exposed posts
The Company regularly identifies energy-related risks and opportunities and integrates them into energy reviews and management reviews, establishing a
to reduce hearing exposure. A health monitoring system shall be established with regular hearing tests.
closed-loop management mechanism covering identification, assessment, formulation of response measures, continuous monitoring and improvement, so
as to enhance the Company’s operational resilience in the context of energy transformation and climate change.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
To fully and systematically implement various energy conservation initiatives, each base has set up a special working group and established a cross-depart-
mental collaborative working mechanism including patrol inspection, energy conservation auditing, evaluation and rectification, review and analysis, and
Water Resource Utilization
reporting. Based on actual business operations, an energy consumption monitoring platform has been built to improve energy management efficiency and In accordance with the Energy and Resource Management Procedures, the Company regularly compiles, analyzes and publishes water use and water conser-
energy use efficiency through refined management measures such as real-time collection of energy data, analysis and early warning. In 2025, the Company vation status. While ensuring supply, the Company has adopted a series of effective measures to safeguard water safety. All operating sites are supplied with
invested 3,086,500 yuan in energy-saving renovation projects. municipal tap water. In 2025, the Company had no water resource-related impacts caused or contributed to by water intake, water consumption or drainage,
Status of Energy Conservation and Emission Reduction in 2025 (Partial) nor any water-related impacts directly generated by operations, products or services through business relationships.
Heat Recovery Renovation for Desiccant Rotor Dehumidification Units Energy Saving Renovation for Aging Air Conditioning Units
A heat recovery device was installed on the 40,000-air-volume desiccant Intelligent control optimization and high-efficiency component replace-
rotor dehumidification unit to recover exhaust air energy for fresh air ment were carried out for air conditioning units in aging workshops to Established a secondary and tertiary water meter metering network covering major water consumption units (workshops, production
pre-treatment, significantly reducing cooling and reheat energy realize on-demand cooling and precise temperature control. Metering and lines, dormitories); supervised water supply, especially during production ramp-up stages, by closely monitoring daily water use
Monitoring
consumption. changes to detect and resolve potential problems in a timely manner.
Linked Optimization of Compressed Air Pipelines Collaborative Optimization of Power Systems
By connecting the compressed air pipe networks of Cell Plant No. 2 and Projects such as "linked compressed air pipelines between cell and Pack Developed and implemented regular inspection and leak detection plans for water supply networks to promptly identify and repair
Pipe Network running, dripping, leaking and seeping issues.• Separated rainwater and sewage pipe networks; cooling tower drainage and
the Pack Plant, integrated gas source scheduling and load balancing were plants" were implemented to reduce redundant operation of air compres- Maintenance
achieved, reducing inefficient operation time of air compressors. sors through pipe network interconnection and intelligent scheduling, rainwater harvesting are implemented at the power station.
improving the overall energy efficiency of the public power system.
Procurement and Application of Energy-Saving Equipment Waste Heat Recovery from Dust Collectors
Condensed Water Recovered condensed water from air conditioning systems and process equipment as supplementary water sources.
Priority was given to purchasing energy-saving production equipment Waste heat from dust collector exhaust was recovered and connected to Recovery
such as motors, water pumps and fans that meet China’s Class 1 energy the return air duct of dehumidifiers to reduce steam and power consump-
efficiency standards. LED energy-saving lighting was promoted, and tion of dehumidifiers.
intelligent sensor control systems were installed in warehouses, corridors
and other areas to eliminate ineffective lighting.
Promotion of
Water-Saving Deployed water-saving sensor faucets, water-saving toilets and other efficient fixtures.
Equipment
Waste Heat Recovery from Air Compressors
Waste heat from air compressors was recovered to dryers for removing moisture from compressed air, replacing electric heating with waste heat recovery.
Publicity and Continuously promoted water-saving concepts and practices through internal posters, knowledge competitions, special training and
Indicators and Targets Training other channels.
The Company’s direct energy consumption mainly includes gasoline, diesel and other fuels, while indirect energy covers purchased electricity and purchased
steam. Coal, wind energy, biomass energy and other types are not involved. The annual energy consumption is shown in the table below.
Ecosystem and BiodiversityConservation
Indicator Unit 2023 2024 2025
Total Direct Energy Consumption tce / / 2677.44
Total Indirect Energy Consumption tce / / 93382.13
The Company strictly abides by laws, regulations and policies including the Environmental Impact Assessment Law of the People’s Republic of China,
Total Energy Consumption tce 93,987 82,222.282 96059.58 Guidelines on Further Strengthening Biodiversity Conservation, Soil Pollution Prevention and Control Law of the People’s Republic of China and Groundwater
Management Regulations, and implements management in accordance with local implementation rules to ensure that operational activities do not adversely
Clean Energy Consumption tce 6408.38 8329.33 14463.03 affect surrounding ecosystems and biodiversity.
At present, none of the Company’s leased or operating sites are located in protected areas or biodiversity-rich zones. No major incidents affecting biodiversity
Energy Consumption Intensity tce / million revenue 5.72 7.04 10.54
occurred in 2025.
Win-Win
Cooperation
Customer Relationship
Management
Employee Relationship
Management
Community Relationship
Management
Industrial Ecosystem
Collaboration
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Customer Relationship Management Strategy
As a key part of the full life cycle management of the Company’s power battery products, the Company has built a customer-centric and efficient service
Governance system by optimizing the organizational structure, improving service efficiency and perfecting the complaint management mechanism, striving to provide
customers with an excellent service experience and enhance customer satisfaction. Meanwhile, the Company has established and continuously optimized an
authorized service network, supporting the overall strategic development goals through effective large-scale layout, standardized management and digital
Farasis Energy (Ganzhou) Co., Ltd. has established a dedicated after-sales service management department and formulated the After-Sales Service Support
empowerment. The Company has more than 120 authorized service stations, strategically covering major urban agglomerations and key new energy vehicle
Process to standardize the end-to-end workflow from reception, diagnosis and handling to delivery. Multiple customer feedback channels are available to
markets across the country, ensuring a reasonable service radius and providing customers with convenient and accessible professional services. In addition,
fully protect customer rights and interests. In addition, all service stations have passed strict qualification review and on-site certification, and core technical
the Company has established a full-process management system covering "access, training, operation and assessment", and gradually promoted the digitali-
personnel are required to complete systematic training. Through regular special training and experience-sharing sessions, the Company continuously
zation of service processes. The online management of work orders, technical support and parts traceability is realized through the system platform, improv-
enhances employees’ professional skills, service awareness and teamwork capabilities, fostering a collaborative team culture that enables the team to deliver
ing operational efficiency and transparency.
reliable, professional and caring after-sales experiences.
Full-Chain Standard Operating Procedure for After-Sales Service
Impact, Risk and Opportunity Management
Customer Complaint Handling
Reception Diagnosis Handling Delivery The Company has formulated and strictly implemented the After-Sales Service Support Process to standardize the handling of customer
complaints, opened diversified feedback channels such as telephone, email and WeChat, and assigned special personnel to receive relevant
repair information. End customers can provide feedback to on-site service personnel or regional service managers through 4S stores,
authorized service stations and other channels, and the Company provides 24/7 all-weather service.
FPre Fully capture customers’ real, accurate and complete demands to ensure rapid response to reasonable
requests and timely provision of technical support and solution design. Customer Satisfaction Management
Sales
The Company has formulated and improved institutional documents such as the Customer Satisfaction Management Procedures, clarifying
the scope, frequency, standards and evaluation process of surveys. In 2025, in strict accordance with the procedures, the Company organized
several special surveys for mass production vehicle customers, focusing on core dimensions including product quality, delivery timeliness and
after-sales service. Through scientific research and rigorous analysis, the results of all customer satisfaction surveys throughout the year
stably met and exceeded the management objectives.
Adopted a digital and intelligent customer management model. Through tracking mechanisms including
During customer demand planning, order management and credit management, closed-loop management of
Sales demand-order-scheduling-delivery-payment collection is realized, improving response speed and
management efficiency.
Responsible Marketing
In terms of marketing, the Company effectively identifies and objectively reviews customer requirements, and strictly prohibits unfair competi-
tion through improper means. When accepting customer orders, based on the Order Review Control Procedures, the Company truthfully
Committed to building a customer-centric global after-sales service system. By systematically optimizing
presents its existing commercial capabilities and never provides any false information to ensure business integrity.
the domestic network and planning global layout, continuously improving team functions, enhancing
After
spare parts efficiency and response speed, and deepening collaboration with customers, the Company
Sales
steadily upgrades its comprehensive service capabilities and customer satisfaction, providing customers
with high-quality full-lifecycle service experiences.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Employee Relationship Management Remuneration and Benefits
Farasis Energy (Ganzhou) Co., Ltd. upholds the principle of equal pay for equal work and has built a compensation and incentive system covering all employ-
Employee Rights Protection ees. The Company has formulated and improved the Performance Management System and adopts reasonable performance target decomposition tools to
ensure that individual performance goals are highly aligned with corporate strategic objectives, providing employees with clear work directions and
evaluation criteria. Semi-annual and annual assessments are carried out as scheduled to objectively evaluate employees’ achievement of performance goals,
Farasis Energy (Ganzhou) Co., Ltd. always takes the protection of employee rights as the core, standardizes the management of recruitment and dismissal, providing a basis for salary adjustments and incentives.
salary and welfare security, working hours and vacations, and establishes diverse democratic communication channels to listen to employees and effectively
protect their legitimate rights and interests. To stimulate employee initiative and creativity, the Company grants annual salary adjustments to core employees based on actual annual performance,
commends outstanding employees and teams with cash bonuses, and timely recognizes their contributions and efforts.
The Company maintains open channels for performance appeal feedback. If an assessed employee disagrees with the performance evaluation results (scores
Employee Employment and performance grades), he or she may communicate promptly with the direct supervisor (assessor) or department head and state the basis and reasons in
writing. If dissatisfied with the outcome, the employee may further file an appeal to the HRBP. Upon receiving an employee appeal, the assessor, department
Farasis Energy abides by international labor standards and national laws and regulations, adheres to the principles of equal employment and equal pay for
head or HRBP shall follow up and resolve the matter within 3 working days. The appeal result shall be signed and confirmed by the employee before internal
equal work, and is committed to building a legal, fair and inclusive employment management system. It has formulated and issued a series of systems such as
archiving.
the Employee Recruitment Management System and Background Investigation Management System, established diversified talent recruitment channels
including internal recruitment, social recruitment and campus recruitment, and is committed to building a diversified talent team. A recruitment system has
been introduced to ensure the standardization and transparency of recruitment and employment procedures. The Company has formulated and implement-
ed systems including the Procedures for the Prohibition of Forced Labor, Policies and Procedures for the Prevention of Child Labor, Procedures for the Preven-
tion of Child Labor and Child Labor Remediation, and Procedures for the Protection of Underage Workers, prohibiting child labor and any form of forced labor,
and rejecting any form of discrimination based on gender, age, race, religion, pregnancy, disability and other factors. Statutory Benefits
During the reporting period, no incidents of discrimination, harassment, child labor or forced labor occurred in the Company.
Social Insurance and Housing Fund: Full coverage of pension insurance, medical insurance, unemployment insurance, work-related injury
The Company is committed to creating a diverse, inclusive and equal workplace environment, and has formulated and issued the Human Rights and Diversity
insurance, maternity insurance and housing fund.
Policy, committing to respecting and safeguarding the human rights and labor rights of all employees, suppliers, customers and other stakeholders. The
Company standardizes the signing of employee labor contracts, pays labor remuneration on time, and pays various social insurances and housing funds in Statutory Holidays: Enjoyment of statutory holidays and paid leave in accordance with national regulations.
accordance with the law.
During the reporting period, the labor contract signing rate of the Company reached 100%.
Workplace Environment Non-Statutory Benefits
Living Benefits: Regular free physical examinations; supplementary commercial insurance for employees; comprehensive living conveniences
including staff dormitories, staff canteens and scheduled shuttle bus services; a flexible non-fixed working hour system for non-production
posts.
Activity Benefits: Various employee activities such as birthday parties, retirement ceremonies, sports meets, team-building activities, fun
games and family days.
Democratic Management
The Company respects employees’ freedom of association, has formulated union-related policy documents such as the Procedures for Freedom of Associa-
tion and Collective Bargaining, and signed the Jiangxi Provincial Special Collective Contract for Collective Wage Negotiation, Special Collective Contract for
the Special Protection of Female Employees and Special Collective Contract for Labor Safety and Health, to ensure that employees can freely organize and
participate in union activities and enjoy the right to collective bargaining.
In 2025, the coverage rate of employees under the Company’s trade union or collective bargaining agreements reached 100%.
The Company has established an employee grievance and communication mechanism. Employees may report issues related to child labor, forced labor,
human trafficking, discrimination and harassment through channels including email, WeChat Work and employee suggestion boxes. All employees are also
encouraged to put forward reasonable suggestions to contribute to the high-quality development of the Company.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Employee Care Training and Development
The Company has established an Employee Care Committee, formulated the Employee Care Plan covering all staff, built a comprehensive welfare system, and
The Company has established a talent development system covering all employees, including full-time, part-time and outsourced staff, consisting of four
launched the "Wecare" initiative to ensure the fairness and transparency of the welfare system. Meanwhile, the Company has improved the Management
modules: management capability improvement, professional capability improvement, basic capability improvement, and learning support. Based on employ-
Measures for the Compassionate Assistance Fund and Procedures for the Labor Protection of Female Employees to care for vulnerable groups including
ees’ current situations and development needs, the Company flexibly adopts internal and external training methods to systematically deliver management
employees in difficulty, disabled employees and retired employees.
and professional development programs, providing all-round support for employees’ career growth.
To safeguard the legitimate rights and special interests of female employees, the Company union signed the Special Collective Contract for the Special
Protection of Female Employees with the Company, clarifying equal opportunities and equal pay for male and female employees in training, ranking and
promotion. The Company ensures proper health care for female employees and provides special protection for those during menstruation, pregnancy,
childbirth, lactation and menopause. In addition, the Company union and Women’s Committee conduct irregular internal surveys on the needs of pregnant
and lactating working mothers and women in family hardship. Pregnant female employees are provided with optional afternoon tea and pregnancy meals,
and nursing rooms and care stations are available for lactating female employees. The Company also organizes regular physical examinations for female Selecting and Cultivating
employees covering gynecological examinations, routine leucorrhea tests and cervical cancer screening, and purchases special disease insurance and Talents to Drive Business Growth
supplementary medical insurance.
To help employees better balance work and family responsibilities and support the growth of the next generation, the Company has held three sessions of the
"Farasis Kids Education Story" program. A total of 245 Farasis kids from 218 employee families have received care packages and incentive grants worth a Themed Series
combined 194,000 RMB, which has been widely praised by employees’ families. Meanwhile, the Company has set up assistance workshops for poverty
alleviation, providing jobs for 10 people.
Executive Roundtable (Core Executives) Core Executives
Xin Yao Program – Executive Level (Grade 16+) All-staff basic training
Cadre
Development
Xin Hui Program – Director/Manager Level (Grades 11–15) High-potential
New cadre
onboarding talent
program development
Xin Chen Program – Supervisor Level (Grades 7–10) program
The Farasis and Farasis Kids incentive Distributed a total People supported in
funds have benefited fund of employment New Generation New Generation
Xin Guang Program (New Generation) – Management Trainees Training Camp Incubation Camp
families 245 Farasis
children, 194,000 yuan 10 Tailored professional skills training for different professional tracks
Professional
Development Functional professional Marketing professional R&D professional Manufacturing professional Operational professional
capability improvement capability improvement capability improvement capability improvement capability improvement
Differentiated training based on job nature
New Employee
Development
Xin Hang Program (White-collar Staff) Xin Hang Program (Blue-collar Staff)
Training Infrastructure Farasis
Development Training Mentor
Course Lecturer Farasis Academy
management management
Management Management Academy operation
Platforms for Systems system system
rules
Operation Foundation
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
In 2025, Farasis Energy’s talent development closely aligned with corporate strategy and business breakthrough objectives. Driven by the dual engines of Case
refining its distinctive operational system and empowering talent, the Company systematically implemented a value-creation project covering all employees
and integrated with end-to-end business processes. Focusing on four pillars — building key talent pipelines, upgrading professional competency, solidifying
training fundamentals, and integrating online learning platforms — the Company strives to forge a resilient and continuously evolving talent force, injecting
Xin Guang Program – 2025 Management Trainee Camp
core momentum for sustainable development.
To systematically nurture new talent, the Core Light Program designed a four-dimensional development system for 16 new-generation
trainees covering cultural immersion, practical refinement, autonomous motivation, and long-term connection. The program included an
foundations, and 90 days of cross-departmental rotation to broaden perspectives and strengthen organizational networks. The new-genera-
tion employees not only completed a solid transition from campus to workplace but also demonstrated vitality, innovative thinking and high
During the reporting period
potential through more than a dozen self-organized creative activities.
Conducted training participants in Online internal added new
sessions total courses trainers internal courses
Case
Xin Hui Program – High-Potential Manager Class
As a cradle for reserve management talent, the Core Radiance Program
delivered 5 specialized training sessions for high-potential managers in 2025.
Seventy-five core directors and managers underwent dual development in
leadership refinement and lean practices. Participants developed 174 business
improvement plans and acted as knowledge ambassadors to hold 32 internal
re-training sessions, sharing insights with 715 colleagues. Both leadership and
lean practice certification rates exceeded 94%. The Company is committed to building a career development platform full of opportunities and challenges. It has innovatively launched the "Y-Chan-
nel" career development system, which offers dual promotion paths — management and professional — for each role category. Employees are encour-
aged to choose suitable development directions based on their interests and capabilities to build core professional competitiveness. Meanwhile, the
Company provides a flexible internal transfer mechanism, supporting employees to adjust between career tracks as appropriate and helping them
maximize personal value.
Management Professional
Track Track
Case
Senior
Leader Specialist
Xin Chen Program – High-Potential Supervisor Class (Session 1)
Manager Senior
Professional
To strengthen the frontline management pipeline, the Core Star Program
"Y-Channel" Career Path
extended training to operational frontlines, holding 11 sessions at the Ganzhou
headquarters and Guangzhou bases. Using lean improvement projects as
Dual career development paths (management and Supervisor Core Professional
practical platforms, learners applied "learning-by-doing" to implement 30
professional) are defined for each job category
improvement measures, generating cost-saving and efficiency gains of
approximately 2.455 million yuan. Twelve outstanding talents were added to
the reserve pool, realizing true "battlefield training." Experienced Professional
Entry-level Employee
Farasis Energy "Y-Channel" Career Development System
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Employee Satisfaction Implementation of Safety Grid Management
The Company conducts regular annual surveys on employee satisfaction and engagement, covering dimensions including vitality, satisfaction, organizational
• A safety grid management team has been established, with a basic grid system in place. Management manuals, grid indicators, risk identifi-
climate, compensation, career development, and training. Based on analytical results, the Company carries out reviews and formulates targeted improvement cation, monitoring and improvement mechanisms have been initially formulated and will be continuously optimized.
measures to stimulate employee vitality and foster a sense of identity and belonging. In 2025, the coverage rate of satisfaction/engagement surveys reached
In 2025,
The coverage rate of corporate The overall Establishment of Base Early Warning Center
employee satisfaction and employee
engagement survey reached engagement score
• Modules including extreme weather early warning, hidden danger reporting, daily hazard elimination, safety announcements and accident
alerts are created to deliver timely warnings to every employee. An EHS learning library is built for full participation.
Occupational Health and Safety Chemical Management
Farasis Energy has established a two-level Work Safety Committee as the highest decision-making body for occupational health and safety, with an executive •Formulated chemical-related systems including the Hazardous Chemicals Management Regulations, Special Emergency Plan for Hazardous
Chemicals Leakage, On-site Response Plan for Excessive NMP Waste Gas Concentration and Management System for Precursor Chemicals and
office under its charge. In accordance with relevant standards, the Company has formulated documents including the Occupational Health and Safety
Explosive Precursors. Qualified personnel are assigned after training, and chemical safety emergency drills are conducted regularly to ensure
Operation Control Procedures and Hazard Identification and Risk Assessment Procedures to standardize occupational health and safety management,
controllable risks.
effectively reduce related risks, and has obtained ISO 45001 certification.
•Transportation qualifications of suppliers are reviewed and periodically re-examined during supplier qualification and ongoing management.
The Company and all bases regularly carry out work safety inspections, including monthly safety checks, special safety inspections, holiday inspections and
• Demonstration hazardous chemical warehouse at Zhenjiang Base: audited and accepted by the Municipal Emergency Management Bureau
daily safety patrols, and organize rectification of identified problems. Safety and fire protection facilities are maintained on a regular basis. Workplaces
and awarded the title of "2025 Zhenjiang Industrial Enterprise Hazardous Chemicals Demonstration Warehouse".
involving occupational hazards are monitored periodically, and employees in such positions receive pre-job, on-the-job and off-the-job physical examina-
tions, with full notification of occupational hazards. In addition, the Company organizes various emergency drills each year, including company-level compre-
hensive emergency drills, special emergency drills and workshop-level emergency response drills. Company-level emergency evacuation drills are held at
least once annually with full employee coverage.
For performance assessment, the Company links EHS performance of the CEO and executive management to performance appraisal, with deduction items for
major safety and environmental incidents. Group-level and base-level KPIs are established covering work safety and accident rates to effectively measure
Cultural Development
EHS management effectiveness. EThe Company regularly carries out a series of safety and health promotion activities as scheduled, including the Law of the People's Republic of China on the
Prevention and Control of Occupational Diseases Publicity Week, the "Farasis Safety Cup" Knowledge Contest during Work Safety Month, on-site first aid
certification training, the "Ankang Cup" Knowledge Contest, fire skills competitions, the Work Safety Law of the People's Republic of China Publicity Week,
commendation of excellent cases in the "Snap a Hazard" campaign, and safety excellence awards such as Outstanding Safety Individual and Safety Star. All
activities received positive feedback. In 2025, the Company held a total of 633 safety training sessions with 48,973 participants.
Risk Identification and Management
Each year, the Company organizes all departments to conduct hazard identification and risk assessment for identified hazards, which are subject to hierarchi- In 2025, the Company organized
cal control and corresponding management measures. Key risks require risk notification, personnel training before post assignment, clear responsible
safety training sessions Trained
persons, protective measures, regular safety supervision and special work approval for operations in relevant areas to ensure risks remain under control.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Community Relationship Management Industrial Ecology Synergy
Farasis Energy attaches great importance to community relationship management. Through solid efforts in rural revitalization and extensive participation in
public welfare activities, the Company builds a shared and harmonious coexistence with local communities. We are committed to giving back to society with Supply Chain Management
the fruits of corporate development, conveying corporate care and demonstrating responsibility in promoting local prosperity and improving people’s
livelihood.
Governance
The Company has established and continuously improved a sustainable supply chain management system. A Responsible Procurement Committee has been
Rural Revitalization set up, headed by the director of the Supply Chain Management Center. Led by the Sustainable Development Department, a working group composed of
procurement, quality and other relevant departments carries out supply chain due diligence, integrates ESG requirements into supply chain management,
and comprehensively strengthens sustainable supply chain governance.
The Company actively participates in the "10,000 Enterprises Vitalize
workshops". To uphold respect for teachers and education and foster Procedures for Responsible Mineral Supply Chain Due Diligence Management, integrating environmental, social responsibility and business ethics require-
a culture of charity, the Company has provided financial aid to ments into supply chain operations to reduce sustainability risks.
disadvantaged students in Sanjiang Township for three consecutive
years, with a total donation of 157,400 yuan. It has purchased agricul-
tural products from poverty-stricken areas to support the fight
against poverty and donated 80 LED street lamps to Qinlong Village,
Xijiang Town, Huichang County. Strategy
The Company regards supply chain management as a cornerstone of sustainable development and systematically enhances supply chain resilience. Through
diversified sourcing of key materials, strategic inventory and a digital supply chain platform, it improves responsiveness to market fluctuations and emergent
risks. In building a sustainable supply chain, we deepen green procurement by incorporating environmental, social and ethical criteria into supplier qualifica-
Social Contribution tion and evaluation systems. Committed to a responsible supply chain in strict compliance with international norms, the Company ensures the legality and
ethical sourcing of raw materials through due diligence and compliance traceability, driving collaborative low-carbon and transparent development across
The Company is committed to fulfilling social responsibilities and has established a volunteer service team to promote the spirit of dedication, friendship, the supply chain.
mutual assistance and progress. It actively participates in public welfare activities at all levels, such as visiting and comforting low-income families of women
with two types of cancer and impoverished children, offering condolences to children’s welfare institutions, paying festival visits to sanitation workers and
lonely elderly people, and funding the construction of "Childhood Harbor" centers for left-behind children. To care for left-behind children and improve their
quality of life, the Company has supported two left-behind children in Huangsha Village, Ganxian District for eight consecutive years, with an annual donation
of nearly 10,000 yuan.
Impact, Risk and Opportunity Management
The Company has formulated and issued the Supplier Potential Risk Assessment Form to identify and evaluate suppliers’ potential operational and financial
risks on a quarterly basis. Meanwhile, it has established a sustainable supply chain management system that incorporates ESG risks such as human rights,
Case environmental protection and business ethics into supply chain risk identification and management processes. Conducted annually through supplier self-as-
sessment questionnaires and third-party on-site audits, these efforts further enhance the risk resilience of the supply chain.
Caring for Children’s Growth, Celebrating Children’s Day and Dragon Boat Festival
In 2025, the Party Committee, Labor Union, Women’s Committee and Care Committee for the Next Generation organized Party members and
volunteers to the "Childhood Harbor" children’s activity center in Xiejiao Village, Sanjiang Town, Ganzhou Economic and Technological Develop-
ment Zone. A volunteer service activity themed "Caring for Children’s Growth, Celebrating Children’s Day and Dragon Boat Festival" and "Rule of
Law Accompanies Growth, Heritage Passes to Youth" was held, integrating legal education and red culture. Through mini legal lectures and fun
games, the spirit of red justice took root in children’s laughter.
The "Childhood Harbor" in Xiejiao Village was built with support and funding from Farasis Energy. It provides free after-school tutoring and
psychological counseling for children, especially left-behind children, bridging the "last mile" of after-school services.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Resilience Management Quality accounts for 35% of the supplier score with a "one-vote veto" for quality failure. On-site
The Company promptly responds to policy and external market changes and flexibly adjusts supply chain strategies. By strengthening strategic cooperation audits are conducted; for critical suppliers failing the audit, the Company dispatches an on-site
with suppliers and adopting a diversified supply chain layout, it mitigates risks such as supply chain disruptions and improves supply chain resilience. At the quality support team to rectify non-conformities and improve quality and delivery capabilities. ESG
same time, the Company enhances the sustainability capacity of the supply chain by carrying out mineral supply chain due diligence, compliance traceability
requirements including environmental, occupational health and safety, information security and
and ESG due diligence, so as to better control sustainability risks and build a highly resilient supply chain featuring compliance resilience, supply resilience and
privacy protection are also integrated into supplier qualification evaluation.
operational resilience. In the qualification
assessment phase
• Implement dual or multi-source supply for key materials and establish graded management for multi-point
introduction of core raw materials to avoid over-reliance on single sources.
Diversified Supply
Chain Layout • Sign strategic cooperation agreements with suppliers covering long-term supply and joint development to
strengthen supply chain synergy.
Suppliers are required to countersign documents such as the Supplier Code of Conduct,
Conflict-Free Metals Declaration, Child Labor-Free Statement and Integrity Commitment to convey
the Company’s compliance and ESG expectations. In accordance with the Supplier Performance
Evaluation Measures and Supplier Quality Assessment Management Rules, monthly and annual
•The SPS ultra-large soft-pack technology platform is compatible with ternary, LFP, solid-state, sodium-ion and
performance evaluations are carried out. Suppliers are quantitatively assessed on quality, price,
Technological other battery systems, enabling seamless production line switching and shortened transition cycles.
delivery and other dimensions and classified into four grades: A, B, C and D. Differentiated manage-
and Production
• Bases in Ganzhou, Guangzhou and other locations adopt fully flexible production designs adaptable to multiple ment is applied accordingly: Grade A suppliers are eligible for the annual "Excellent Supplier" review
Flexibility
materials and battery forms, enhancing delivery flexibility. In the approved with priority qualification and increased purchase share. Grade C and D suppliers are subject to
cooperation phase controlled shipment, executive escalation, restricted new project qualification and third-party
counseling to improve quality performance.
• Establish production bases in Ganzhou (Jiangxi), Zhenjiang (Jiangsu), Guangzhou (Guangdong) and actively
expand overseas capacity with a plant in Turkey. Supply chain coordination ensures stable supply of strategic
Global Business resources and reduces geopolitical and logistics risks.
Layout
• Promote localized supply chain development centered on production bases to shorten lead times and improve In addition, the Company develops an annual supplier on-site audit plan covering quality system operation, process control, change management and
responsiveness. The domestic material substitution rate reaches approximately 98%. other elements. Core suppliers are audited at least annually, and all suppliers at least once every two years.
The Company empowers supply chain partners with its industry expertise by regularly providing quality management capability training. Each year, it
selects underperforming core suppliers and launches a core supplier support program. During the reporting period, 5 core suppliers received
Supplier Full-Lifecycle Management targeted support. Experience and lessons from these efforts were compiled into a knowledge base to drive overall supplier capability improvement
and smooth implementation of new projects.
The Company has issued the Supplier Development and Management Procedures and Procurement Control Procedures to standardize supplier quality
management and procurement processes. It communicates a "zero-defect" quality target to suppliers and evaluates them based on quality system manage-
ment, personnel competence, product and process quality, quality improvement and other dimensions.
The audit frequency for core suppliers The audit frequency for all During the reporting period, the Company
is no less than suppliers is no less than provided targeted assistance to
Quality System Management
a year. every two years. core suppliers
Personnel Competence
Product and Process Quality Sustainable Supply Chain Development
Supplier Evaluation
The Company has established a comprehensive sustainable supply chain management system and issued a series of documents including the Sustainable
Dimensions
Quality Improvement Supply Chain Management System and Supply Chain Due Diligence Policy, aiming to strengthen the identification and management of ESG risks in the supply
chain, prevent risks such as child labor, human rights abuse and environmental damage, and enhance supply chain resilience.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
In terms of mineral supply chain due diligence, the Company has formulated and issued the Procedures for Responsible Mineral Supply Chain Due Diligence
Management to identify environmental, social responsibility and business ethics risks in the mineral supply chain. Meanwhile, it has released the Supplier
Equal Treatment of SMEs
Notice and Supplier Code of Conduct, explicitly requiring suppliers to provide minerals with compliant origins, traceability and no labor-related risks. In the The Company eliminates discriminatory clauses and unfair treatment in procurement bidding, supplier qualification and contract performance,
Supply Chain Due Diligence Policy, the Company commits to advancing compliance with international standards and best practices across all supply chain ensuring that small and medium-sized enterprises (SMEs) enjoy equal business opportunities and negotiating status. It has built digital supply chain
links through risk assessment, supplier audits, training and improvement mechanisms. It has also issued the Supply Chain Energy Conservation and Carbon
platforms such as SAP and SRM, and strengthened bidding management and full-lifecycle supplier management by launching an electronic bidding
Reduction Initiative and conducted empowerment training to promote chain-wide decarbonization and compliant operations. In addition, the Company has
system and integrating the GIIHG procurement platform. These measures shorten procurement cycles, reduce procurement costs, guarantee fair
established the Supply Chain Management Grievance and Communication Mechanism, emphasizing regular communication with suppliers, employees and
participation rights for SMEs, and foster a sustainable supply chain ecosystem.
other stakeholders.
The Company has built a supplier sustainable development evaluation system and independently developed the Supplier Sustainability Management Assess-
ment Form, which includes 46 environmental indicators, 41 social indicators and 31 governance indicators. Based on total scores, suppliers are graded as
Excellent, Good or Qualified. The system is designed to strengthen compliance risk management, reduce compliance costs, and integrate EU regulatory
requirements such as carbon emission management, product carbon footprint, energy conservation and emission reduction, use of recycled materials and
Status of Energy Conservation and Emission Reduction in 2025 (Partial)
circular packaging.
Indicator Unit 2023 2024 2025
For four consecutive years, the Company has conducted supply chain due diligence Number of Suppliers unit 282 263 468
audits on four key mineral raw materials: cobalt, lithium, nickel and natural graphite, and
provided CAP coaching, improvement and monitoring for selected suppliers to empow- Cobalt Lithium
er the value chain. For downstream battery, cathode and anode material suppliers and Percentage of Target Suppliers That Signed the Supplier Code of Conduct % 100 100 100
midstream refineries, audits are conducted in accordance with OECD and EUBR due
diligence standards; for upstream smelters and mines, audits follow OECD and IRMA
Key Mineral Raw Materials Percentage of Target Suppliers Assessed for Corporate Social Responsibility % 100 100 100
standards, covering due diligence management systems, internal material control
system assessment, human rights, environmental protection and other aspects. The
Company has also signed a cooperation agreement with a third party to continue due
Number of Suppliers Covered by Third-Party On-Site Supply Chain Due Diligence Audits unit 19 18 5
diligence audits on key suppliers in 2026. Natural
Nickel
Graphite
EUBR
The downstream battery and positive/negative electrode material suppliers OECD Due Diligence
Collaboration with Industry Peers
and the midstream refineries Standards Standards
Farasis Energy joins hands with industry counterparts to drive technological upgrading and standardized development of the sector through in-depth
participation in industrial standard formulation and diverse industry exchange activities.
OECD IRMA
Upstream smelters and mines
Standards Standards
By the end of 2025 Including
During the reporting period The Company had participated in the National standard Industrial standards Group standards.
formulation of standards,
The Company trained employees as internal auditors for supplier sustainability, all of whom obtained
certificates upon passing assessment. Items Items Items Items
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Empowering Downstream Scenarios
Publish Group Standards Against the backdrop of the global electrification wave and accelerating
energy transformation, power batteries serve as a core driving force and key
enabler. Leveraging profound technological accumulation and sharp market
insights, Farasis Energy has launched four distinctive power battery solutions
covering diversified scenarios from high-performance to cost-effective
applications, and from short- and medium-range mobility to energy storage,
injecting new vitality into the power battery industry.
Guidelines for Carbon Footprint Technical Requirements for
Assessment of Silicon-Based Biomass Hard Carbon Anode Sodium-Ion Starter Batteries
Anode Materials Materials for Sodium-Ion Batteries
Ternary High-Nickel + Semi-Solid/All-Solid Solution
Application Scenarios Features
High-end passenger vehicles, eVTOL and robotics Energy density of 300–400Wh/kg; future all-solid-state batteries targeted
Technical Specifications for Green Quality Grading and "Leader" to reach 400–750Wh/kg with no upper limit.
Battery Passport Guidelines and Low-Carbon Product Evaluation Requirements for
Evaluation of Silicon-Based Silicon-Based Anode Materials
Anode Materials
Ternary Medium-Nickel + Semi-Solid Solution
Application Scenarios Features
Case Long-range electric vehicles, hybrids, heavy trucks and Mass-produced solution with energy density of 260–290Wh/kg.
high-end electric motorcycles
Advancing Technological Innovation to Break New Ground in Battery Safety
Lithium Iron Phosphate (LFP) Solution
I In November 2025, the 15th GGAC Lithium Battery Annual Conference was held in Shenzhen. Dr. Wu Qiang, Test Director of Farasis Energy, was
invited to attend and delivered a keynote speech entitled Intrinsic Safety Solutions and Full-Scenario Applications of High-Performance Pouch Application Scenarios Features
Cells. He shared the Company’s profound expertise and cutting-edge technological achievements in the field of pouch power batteries, contrib-
Medium- and short-range electric vehicles, hybrids, buses 1st-gen mass production energy density of 220Wh/kg; 2nd-gen upgraded
uting to the development of the global new energy industry. and energy storage to 240Wh/kg.
Dr. Wu Qiang emphasized that Farasis Energy has significantly improved the intrinsic safety of batteries through technological innovation. The
temperature of -20°C. Semi-solid batteries easily pass nail penetration tests at both 80% and 100% SOC and withstand a 250°C hot box test. Cost-Competitive Sodium-Ion Alternative Solution
All-solid batteries continue to function normally after extreme tests such as shearing and nail penetration. The SPS ultra-large pouch battery
Application Scenarios Features
pack completed the industry’s first "ten consecutive nail penetrations" thermal runaway test, and the 200Ah LFP cell passed multi-directional
Medium- and short-range electric vehicles, starter batteries Energy-type sodium-ion batteries with 180Wh/kg; power-type sodium-ion
crushing tests with no leakage, fire or explosion.
and energy storage batteries feature ultra-high rate performance, with capacity retention over
SPS-Driven Multidimensional Innovation
Application Scenarios Features
Passenger vehicles, electric aircraft, commercial vehicles, Industry-first pouch cell module-free battery solution with advantages
ships and all mainstream models; compatible with multiple including long range, fast charging, high safety, low cost, flexible adaptation
chemistries to meet current and long-term market needs and iterative upgradability.
Innovation and
Transformation
Research and Development
Innovation
Product Quality and Safety
Intelligent Manufacturing and
Lean Management
Product Compliance and Circular
Economy
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
R&D and Innovation R&D of Solid-State Batteries
Governance Development of Intrinsically Safe Ternary Semi-Solid Batteries
Through solid-liquid hybrid technology, the intrinsic safety of ternary batteries has been significantly improved. Products have passed
The R&D system of Farasis Energy is headed by the Vice President as the primary responsible person. Through collaborative innovation among the
stringent safety tests including nail penetration, overcharge, over-discharge and external short circuit, featuring high safety, high energy
Advanced Technology Research Institute, R&D Institute and Engineering Institute, an integrated "research-development-production" management
density, lightweight design, long cycle life, strong temperature adaptability and high charge-discharge rate. The technology achieves dual
system has been formed. Relevant systems are continuously improved to ensure R&D activities comply with quality management systems such as ISO
upgrades in safety and performance and is applicable to PHEV, REV, BEV and other fields. It has entered the pilot production stage.
technological achievements and project progress into the performance evaluation of the Vice President and all departments. It also attaches great Development of All-Solid-State Batteries
importance to the development of R&D talents and has issued the Patent Management Measures and Rewards and Punishments for Platform Indepen- The first-generation self-developed sulfide-based all-solid-state batteries have completed large-capacity pouch cell fabrication, and a
dent Research Projects, effectively stimulating the innovation enthusiasm of R&D personnel. A tiered Core Series training program has been established supporting pilot line is under steady construction, laying a solid foundation for industrialization. With high-nickel ternary cathodes and
covering supervisors, managers and directors, providing a cross-departmental and cross-level communication platform while enabling knowledge high-silicon anodes, energy density reaches 400Wh/kg. Platform-upgrading technology enables expansion into humanoid robots, eVTOL
sharing, facilitating the rapid progress of work. and other emerging fields.The second-generation sulfide-based all-solid-state battery technology has been developed, using lithium-rich
manganese-based / high-nickel ternary cathodes and lithium metal anodes, raising energy density to 500Wh/kg.
R&D System
A d va searc
Re
e
tut
Development of Long-Cycle High-Loading Silicon Anode Batteries
nce h
sti
d T Ins
In
hn Core technologies for long-cycle high-loading silicon anode batteries have been mastered, with product energy density reaching 350Wh/kg
ec t
ng
itu o lo e ri
in e
and excellent comprehensive performance in discharge rate, fast charging and low-temperature performance. The products have passed
te g y g
En multiple national standard safety tests including overcharge, over-discharge, hot box and short circuit.This technology can be widely applied
R & D I n s t i t u te in high-performance vehicles, eVTOL, robots, drones, special machinery and other scenarios, laying a solid technical foundation for enhanc-
ing end-user experience.
Strategy
Large Pouch Power Battery Solution (SPS)
The Company positions R&D and innovation as the core driver of sustainable development and has adopted a forward-looking technology
strategy:"Launch one generation, reserve one generation, develop one generation". It simultaneously advances in-depth multiple breakthroughs in core SPS large pouch power battery solution has entered mass production. Based on an innovative module-free pouch architecture, it delivers an
technologies and diversified technical routes expansion, with a focus on next-generation solid-state battery technologies to achieve revolutionary industry-leading high-integration battery system that improves vehicle space layout efficiency while ensuring safety. It has been successfully
improvements in energy density and safety. The Company also actively expands its energy storage product portfolio to promote efficient storage and extended to the commercial vehicle sector, achieving a key zero-to-one breakthrough in commercial vehicle customer cooperation.
system-level application of clean energy. Along diversified technical paths, it accelerates R&D and industrialization of emerging systems such as
sodium-ion batteries to enhance resource security and cost competitiveness. Guided by market demand, the Company systematically transitions
cutting-edge technologies from the lab to industrialization, ensuring that technology reserves are timely converted into competitive products.
Development of Ultra-Fast-Charging LFP Batteries
Impact, Risk and Opportunity Management
Core technologies for ultra-fast-charging LFP batteries have been breakthrough, achieving over 12C fast-charging capability. Cells charge
from 10% to 80% SOC in only 7 minutes, with cycle life exceeding 3,000 times. It combines high discharge rate, high energy density, high safety
Forward-Looking Technology Reserve and low cost, suitable for PHEV, REV, BEV and energy storage. It has entered the pilot production stage.
Development of Energy Storage Battery Products
For grid-side and user-side non-power station energy storage, the Company launched a 147kWh liquid-cooled commercial & industrial
integrated system, filling the market gap of 100–200kWh products. A standard 215kWh commercial & industrial energy storage cabinet has also Development of Sodium-Ion Batteries
been introduced, with distinct differentiated competitive advantages in the sub-500kWh market.
Stepwise breakthroughs have been made in R&D and industrialization of sodium-ion batteries. The first-generation layered-oxide sodium-ion
For the small-scale energy storage market below 100kWh, the M1 residential energy storage system features an ultra-thin design and fast-plug
batteries have been industrialized, and the second generation is in pilot production.Polyanion-based energy storage batteries feature
stacking, aligning with market trends. Its flexible design enables rapid switching between LFP and NFPP, high and low voltage for different
ultra-long cycle life and have passed stringent safety tests including nail penetration and thermal runaway; product development and
scenarios. The sodium-ion wall-mounted energy storage system customized for customers directly meets requirements with the ultra-thin M1
industrialization have been completed.Polyanion-based high-power batteries achieve 100C ultra-high-rate performance, with industrializa-
design, allowing fast configuration and delivery.
tion continuously advancing.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Intellectual Property Protection Product Quality and Safety
The Company has established a comprehensive intellectual property (IP) management system, integrating technological innovation with IP protection and
forming a R&D-centered organizational model. Patent work is embedded into the entire R&D lifecycle, ensuring synchronized progress between IP manage-
Governance
ment and technological innovation. Within the R&D process, an institutionalized "internal driving force" mechanism encourages R&D teams to proactively
pursue patent protection, achieving full-cycle IP coverage from technical conception to commercialization. To incentivize R&D personnel to actively Product quality and safety at Farasis Energy are led by the head of the Quality Center as the primary responsible person. The Company fully implements the
participate in patent applications, the Company provides industry-competitive patent rewards, fully motivating innovation within the R&D team. IATF 16949 quality management system, has formulated the Quality Incentive Management Measurements, and fully integrates core quality and safety
indicators into performance appraisal. Meanwhile, a three-level core quality objective management system ("Company – Base – Factory") has been
To further enhance IP management efficiency, the Company continuously optimizes the entire patent management process, significantly improving established. Each year, the Quality Center formulates overall objectives based on corporate strategy, which are decomposed and implemented level by level
timeliness. By introducing a professional IP talent team and strengthening close collaboration between the IP department and R&D teams, the Company to ensure alignment and accountability.
ensures high alignment between patent layout and technological innovation. In addition, the Company emphasizes the digitalization of IP management,
using digital tools to streamline patent search, application and maintenance, providing strong support for R&D and innovation. In addition, the Company has established the Emergency Preparedness and Response Management Procedures. An annual emergency management plan is
developed, systematically reviewed and updated regularly, and routine drills are conducted to verify effectiveness. Improvement lists are formed and
closed-loop implementation is promoted. As of the end of the reporting period, the Ganzhou Base, Ganzhou New Energy Base and Zhenjiang Base have all
obtained IATF16949 and ISO 9001 certifications.
Strategy
The Company introduces The Company strengthens
professional talent echelons for close cooperation between the
Farasis Energy has always regarded quality management as the lifeline of corporate development. Centered on the philosophy of "full-lifecycle quality
intellectual property manage- intellectual property team and
management", it has built a closed-loop management system covering four dimensions: quality control, R&D, manufacturing and supply chain. Through
ment. the R&D department.
Improvement internal audits, lesson-learning dissemination, closed-loop verification, special rectification and digital empowerment, a quality management system
of Intellectu-
covering the entire product lifecycle has been constructed.
al Property
Management In 2025, through in-depth collaboration and systematic construction across professional departments, the Company achieved remarkable results in key
Efficiency
The Company attaches The Company adopts digital tools dimensions including supply chain assurance, project delivery, system certification, customer satisfaction and process control.
importance to the informatiza- to realize efficient operation of
tion construction of intellectual patent retrieval, application,
property management maintenance and other links.
Quality Control
Closed-loop
Supply
R&D management
Chain
Intellectual Property Risk Prevention and Control system
Manufacturing
The Company strengthens the monitoring of market dynamics The Company establishes and improves the internal management
and competitors to timely grasp industry trends and potential and supervision mechanism to ensure the compliance and legality
risks. of intellectual property rights.
Impact, Risk and Opportunity Management
The Company has formulated the Risk and Opportunity Control Procedures, requiring risk analysis covering product recalls, product audits, field returns and
repairs, complaints, scrap and rework. Procedures to mitigate negative risks have been established, shifting quality management from passive response to
The Company enhances employees’ legal awareness and risk awareness through intellectual property protection publicity and training. It also
proactive prevention. Meanwhile, the Quality System Operation Compliance Evaluation and Risk Early Warning Management System has been issued,
cooperates with local protection centers, professional institutions and industry associations to carry out intellectual property protection seminars
mandating regular and dynamic evaluation plans including internal and external audits and special inspections. A comprehensive compliance evaluation is
and build a multi-party collaborative protection network. The Company strives to build an industry-leading intellectual property system, protect
conducted quarterly, with non-conformity rectification tracked regularly. This fully strengthens the adequacy and effectiveness of quality system operation,
technological achievements through rigorous mechanisms, and continuously fuel the sustainable development of the industry.
helps identify and control potential risks in regulatory, customer and internal requirements, reduces quality incidents and compliance gaps, and provides
opportunities for continuous improvement and strategic decision-making, thereby enhancing overall quality management and corporate competitiveness.
No major liability accidents related to product and service safety or quality occurred during the reporting period.
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Full-Lifecycle Quality Management
Non-Conformity and Corrective Actions Product Recall
The Company has systematically built a closed-loop quality and safety management system covering the entire product lifecycle from design and develop-
ment to market service. Starting with new project development, quality and safety requirements are integrated upfront into design through the APQP
process, and raw material reliability is ensured via supplier hierarchical management. In manufacturing, unified process standards and digital process
monitoring guarantee product consistency. For market feedback, a rapid response and root-cause analysis mechanism closes the loop on customer
complaints. Combined with internal audits, experience accumulation and training, a foundation for continuous improvement is established.
Supplier Quality Management
Quality Culture Development
To address fierce market competition, complex technical challenges and diversified product development needs in the new energy power battery
industry, the Company aims to enhance the quality control capability and technical application level of all employees through professional and systematic
external training.
Project Development Quality Management
Every September, the Company responds to the National Quality Month initiative and builds a group-wide, employee-participatory platform for quality
culture promotion. In 2025, with the core theme "Strengthening the Quality Lifeline, Deepening the Service Value Chain", six major series of activities were
planned and implemented.
Measures Details
Quality Month
Opening Ceremony
Quality System Management
Company-Level QCC
Case Selection & Sharing
First FMEA Practical
Competition
Customer Quality Management TQM
(Total Quality Management)
Training Series
Company-Level Quality
Benchmark Selection
On this basis, the Company further established a full-process closed-loop system covering raw material inspection, in-process SPC control, product
inspection, non-conforming product handling, test verification, problem resolution and product recall. This achieves end-to-end risk control from prevention Lesson-Learned
Points Ranking
and control to correction, and ensures every link is traceable and improvable.
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Intelligent Manufacturing and Lean
Management Production-Supply-Sales System
Governance
Farasis Energy strives to build the Farasis Operation System (FOS). It has established an FOS Leadership Team, Execution Team and Advisory Team, and
formulated systems including the Continuous Improvement Control Procedures, Lean Talent Certification Management Regulations, PACK Factory Layout
Planning Management Regulations, Identification Management Regulations and OEE Management Regulations. Key KPIs for measuring lean production
performance cover the end-to-end value chain, including innovation, marketing, procurement, production and talent development. By standardizing and
optimizing operations and processes across the value chain, the Company promotes sustained performance improvement and value creation.
Quality Management
Strategy FOS system
The FOS system takes the lean production module as its core breakthrough
Equipment Management
Production Quality Management
Energy Efficiency Management
Logistics Management
Site Management
Safety Management
Supply-Demand Balance
to systematically upgrade manufacturing and operational capabilities. A
modular organization covering all bases has been built, integrating seven
sub-modules: site management, equipment management, production
quality management, energy efficiency management, safety management,
supply-demand balance and logistics management. Supported by "system Office Automation
construction, standard setting, base empowerment and collaborative
governance", the manufacturing system maintains aligned goals and
coordinated steps in lean transformation.
Impact, Risk and Opportunity Management
Digital Transformation Support
The Company’s core strategy is to build a unified industrial internet platform, fully integrating key business systems including PLM, ERP, MES, WCS, SRM, TMS,
FOS Improvement
QMS and OA. Through efficient system collaboration and data connectivity, it has achieved integrated business-finance management, coordinated produc-
tion-supply-sales, closed-loop quality management and office automation, laying a solid digital foundation for high-quality operations and global strategic
layout.
Measures Details
R&D
Targeted improvement
based on business pain points
Business-Finance Integration
Closed-loop mechanism driven by
"theoretical training + key FOS projects"
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Product Compliance and Circular
Economy Product Carbon Footprint Management
Farasis Energy strictly adheres to product compliance requirements and integrates the lifecycle green management philosophy into R&D, production,
recycling and other links, actively practicing circular economy. By advancing material traceability, optimizing resource efficiency and exploring echelon
The Company has fully integrated product carbon footprint management into product lifecycle management. A third-party institution was engaged to
utilization of retired batteries, the Company is committed to building a resource closed loop from source to end, laying a solid foundation for the sustainable
establish a cradle-to-gate lifecycle model for 1kWh power batteries at the Zhenjiang Base in accordance with ISO 14067, and a product carbon footprint
development of the industrial ecosystem with a strong sense of responsibility.
accounting report was compiled. Meanwhile, the internationally authoritative LCA software Sphera has been introduced for in-house independent lifecycle
modeling and accounting, covering raw material acquisition, manufacturing, distribution and end-of-life stages. Carbon footprint analysis results are
Product Compliance Management actively incorporated into product R&D and decision-making processes to achieve systematic carbon reduction and enhance green competitiveness.
In 2025, specific products of the Company obtained production carbon neutrality certification for the fifth consecutive year.
The Company has in-house expertise in mainstream international certifications such as UL, IEC and EU battery regulations. It has built a product compliance
management system covering regulatory identification, material compliance, certification implementation, export release, carbon footprint assessment and
recycling path planning, capable of meeting differentiated market access and technical regulations in the EU, North America, the Middle East and other
regions, providing full-process compliance support for overseas projects from R&D to delivery.
In 2025, the Company issued the Product Compliance Manual and carried out two revisions to continuously address regulatory compliance, environmental
Resource Recycling and Regeneration
sustainability and market responsibility. Meanwhile, 51 product compliance framework solutions have been delivered, with regulatory requirements deeply
integrated at the product planning stage. Lithium battery projects such as EV/LMT have passed EU Battery Regulation compliance assessments by authorita-
tive certification bodies.
Green Solutions Packaging Material Circularity
The Company focuses on full-lifecycle green solutions and has established a product lifecycle management system driven by regulatory compliance and To standardize the full-process management of raw and packaging materials, the Company has formulated the Production and Material Plan Control
oriented toward customer value, covering the entire chain from product design, use, retirement to recycling and regeneration. Environmental impacts at each Procedures as the core management basis for material requisition, procurement, arrival, inspection and warehousing, clarifying departmental responsibili-
lifecycle stage are comprehensively evaluated, including global warming, resource depletion, eco-toxicity and other environmental indicators. ties and operational standards to ensure standardized and traceable control processes. All production bases adopt recyclable packaging solutions and have
established a sound monitoring mechanism for packaging material recovery rates to ensure efficient recycling and reuse.
Hazardous Substance Control Packaging development strictly follows the Finished Product Packaging Development and Change Management Regulations and Raw Material Packaging
Development and Change Management Regulations, aiming to reduce virgin material consumption, increase recycling and recycled content, and lower
landfill/incineration of packaging waste. Lightweight design reduces material procurement costs, space and load losses in transportation, and disposal costs
The Company has established a complete hazardous substance control system including the Hazardous Substance Compliance Management Process and of waste packaging. During lightweight and circular transformation, packaging protection performance including cushioning, moisture-proofing and impact
Product Compliance Manual. It strictly abides by international environmental directives such as the EU Battery Regulation, RoHS, REACH and POPs, and resistance is maintained to meet safety requirements for dangerous goods transportation of lithium-ion batteries. Common recyclable packaging types
actively implements the Extended Producer Responsibility (EPR) system. Full-lifecycle and full-chain hazardous substance control is applied to products, include: recyclable plastic crates, recyclable blister packaging, recyclable calcium plastic boxes, recyclable sleeve packs, recyclable pallet boxes, modular
covering all levels from raw materials, components and modules to finished battery systems, and running through the entire process of hazardous substance recyclable aluminum profile packaging, and recyclable material racks.
identification, assessment, verification, declaration and archiving. It applies synchronously to all externally sold products, including cells, modules, PACK
systems, BMS and integrated components, ensuring all products meet hazardous substance regulatory requirements in each sales market.
Battery Circularity
The Company focuses on developing efficient and environmentally friendly battery recycling solutions to achieve high material recovery rates, long cycle life
and high stability of recycled materials. For high-value cell raw materials, the Company has reached agreements with suppliers for scrap resale, remelting and
reuse, such as cathode main powder and NMP. Material loss is reduced by controlling raw material dimensions, including copper foil, aluminum foil and
aluminum plastic film. Monthly material loss rate analysis is conducted to optimize and monitor excessive loss and gradually refine the BOM.
The Company adds a "Waste Disposal" label (with trash can icon) and a "Recyclable" label (with circular arrows) to battery packs. Standardized labeling guides
consumers to correctly identify and dispose of batteries into dedicated recycling streams, facilitating identification, classification and resource utilization by
the recycling industry chain and improving material recovery efficiency.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Appendix
Litigation and Violations
ESG Performance Table Indicator Unit 2023 2024 2025
Concluded corruption lawsuits against the Company case 0 0 0
Operational Performance Reports from whistleblowing procedures case 1 0 0
Confirmed corruption incidents case 1 1 1
Indicator Unit 2023 2024 2025
Operating Revenue 100 million RMB 164.36 116.80 91.17
Board Governance
Annual Tax Payment 100 million RMB 0.71 1.55 1.21
Indicator Unit 2023 2024 2025
Operating Costs 100 million RMB 157.60 103.58 82.80
Board meetings held time 17 10 10
Total Assets 100 million RMB 301.45 266.27 228.02
Average attendance rate of board meetings % 100 100 100
Shareholders’ meetings held time 3 2 5
Number of directors person 11 11 14
Party Building
Number of independent directors person 4 4 5
Indicator Unit 2023 2024 2025
Number of General Party Branches unit 1 1 1
Number of non-independent directors person 7 7 9
Number of Party Branches Established unit 4 4 5
Independent directors with industry background person 2 2 2
Total Number of Party Members person 99 107 113
Directors with legal expertise person 1 1 1
New Party Members in the Year person 30 25 6
Independent directors with risk management background person 3 3 3
Number of Party Member Activities time 23 26 27
Independent directors with accounting/finance background person 2 2 2
Attendance of Party Member Activities person-time 93 107 100
Average tenure of board members year 3 3 3
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Environmental Compliance Management Emissions and Waste
Indicator Unit 2023 2024 2025 Indicator Unit 2023 2024 2025
Environmental pollution incidents case 0 0 0 Total waste generated ton 14723.38 9,736.61 11868.84
Material administrative penalties for environmental violations 10,000 RMB 0 0 0
Total waste recycled and reused ton / / 7567.80
Penalties for environmental law violations case 0 0 0
Proportion of waste recycled and reused % / / 64
Environmental protection investment 10,000 RMB 382.73 263.70 254.77
Total waste recycled per million revenue ton / million RMB / / 0.83
Investment in energy-saving renovation projects 10,000 RMB 451.07 634.59 308.65
Total general waste ton 7922.69 9296.40 8594.57
Percentage of employees with environmental training % 100 100 100
General waste intensity ton / million RMB 0.48 0.80 0.94
Percentage of sites with environmental risk assessment % 100 100 100
Total hazardous waste ton 715.91 440.21 524.9
Number of National Green Factories unit 0 1 2
Hazardous waste intensity ton / million RMB 0.04 0.04 0.06
Greenhouse Gas Emissions? Total wastewater discharge1 ton 279046 237879 294997
Indicator Unit 2023 2024 2025 Wastewater discharge intensity ton / million RMB 16.98 20.37 32.36
Total GHG emissions (Scope 1 + Scope 2) tCO₂e 371657.34 289082.48 278171.25 BOD emissions ton / / 0.03
GHG emissions per unit energy consumption (Scope 1+2) tCO₂e / / 2.90 COD emissions ton / / 6.50
Scope 1 GHG emissions tCO₂e 4328.28 3679.09 5113.202 NH?-N emissions ton / / 0.75
Direct GHG emissions per million revenue (Scope 1) tCO₂e / / 0.56 SS emissions ton / / 2.00
Scope 2 GHG emissions (location-based) tCO₂e 367329.06 285403.39 273058.05
TP emissions ton / / 0.05
Scope 2 GHG emissions (market-based) tCO₂e 246221.5 265853.66 221150.66
TN emissions ton / / 2.87
Indirect GHG emissions per million revenue (Scope 2) tCO₂e / / 24.26
Percentage of wastewater treated by municipal WWTP % 100 100 100
Scope 3 GHG emissions tCO₂e 987510.47 841536.69 9387013
Waste gas emissions2 10,000 m? 85717.35 48311.90 105722.31
Other indirect GHG emissions per million revenue (Scope 3) tCO₂e / / 102.96
VOCs emissions kg 1342.60 6350.40 5478.54
GHG emission intensity tCO₂e / million revenue 22.61 24.75 30.51
NOX emissions kg 104.60 24.60 64.74
Direct reduction in Scope 1 GHG emissions tCO₂e 1952.20 649.19 -1434.11
Direct reduction in Scope 2 GHG emissions tCO₂e 51176.84 81925.67 12345.34 PM emissions kg 104.00 26.20 76
GHG offsets (Scope 1 & 2) tCO₂e / / 46062.62 SOX emissions kg 793.10 186.60 0.49
Direct GHG offsets (Scope 1) tCO₂e / / 12950 Waste gas emission intensity 10,000 m? / million RMB 5.22 4.14 11.6
Indirect GHG offsets (Scope 2) tCO₂e / / 33112.62
Carbon emission reduction from clean energy generation tCO₂e / / 18359.89
*Data Notes:
Data Notes： 2024 wastewater scope: Ganzhou Base, Ganzhou New Energy Base, Zhenjiang Base; 2025 adds Guangzhou Base.
Carbon inventory has not yet been conducted at the Guangzhou Base and Ganzhou New Energy Base in 2025. Therefore, GHG emission data for 2023, 2024 and 2025 in this table only cover the Ganzhou 2
Base and Zhenjiang Base. Some indicators in the table are newly added and were not counted in 2023 and 2024, hence marked as "/".
The increase in Scope 1 GHG emissions is mainly due to the addition of R428A and heptafluoropropane fire extinguishers at the Zhenjiang Base, which have high global warming potential (GWP) values,
leading to a rise in total emissions.
The increase in Scope 3 GHG emissions is mainly attributed to the update of the carbon emission factor for road freight transportation, which was revised from 0.049 kgCO₂e/t·km (originally from CPCD) to
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Energy Management Employee Responsibilities
Indicator Unit 2023 2024 2025 Indicator Unit 2023 2024 2025
Total energy consumption tce 93987 82222.28 96059.58 Total employees person 6554 6463 5080
Total electricity consumption kWh 457102902.40 409656250.40 442515454.20 Male employees person 4762 4742 3704
PV power generation kWh 37129897.40 37035604.40 34602127.20 Female employees person 1792 1721 1376
Purchased electricity kWh 419973005 372620646 407913327 Management employees person 641 652 693
Steam consumption ton 445204.2 350596.71 397928.39 Operational employees person 5913 5811 4387
Natural gas consumption m? 69560 2685293 2434040.90 ≤30 years old person 2889 2621 1946
Energy intensity tce / million RMB 5.72 7.04 10.54
Renewable energy consumption tce 6408.38 8329.33 14463.03
>50 years old person 72 75 66
Renewable energy ratio % 58 57 41
PhD & above person 38 38 41
Total green power traded MWh / / 83079.12
Master’s degree person 293 283 269
Green power certificates traded piece / / 62406
Bachelor’s degree person 1539 1517 1259
Other qualifications person 4684 4625 3511
R&D personnel person 1483 1406 1203
Water Resource Management
New hires during the year person 5724 2343 3066
Indicator Unit 2023 2024 2025
Total water intake ton 2032662.75 1647060 1864008
Diversity & Inclusion
Water intensity ton / million RMB 123.67 141.01 204.46
Indicator Unit 2023 2024 2025
Female ratio in all management positions % 13.26 10.63 15.69
Packaging Materials Female ratio in junior management % 17.48 16.23 18.22
Female ratio in revenue-generating functions % 30 31.31 29.73
Indicator Unit 2023 2024 2025
Female ratio in R&D positions % 15.49 16 15.71
Total packaging usage piece 214508 171505 297586
Ethnic minority employees person / / 108
Reusable packaging usage piece 70879 40877 112961 Disabled employees person 50 50 41
Reusable packaging ratio? % 33.04 23.83 37.96 Labor dispatch employees person / / 362
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Occupational Health and Safety
Employee Training & Development
Indicator Unit 2023 2024 2025 Indicator Unit 2023 2024 2025
Total training hours hour 73999 80257.9 30561 Workdays Lost Due to Work-Related Injuries day / / 412
Average training hours per employee hour 11.29 12.71 6
Number of Work-Related Accidents case 13 6 12
Average training hours – male hour 11.94 13.50 6.7
Average training hours – female hour 9.57 10.55 4.1 Number of Injured Employees person 13 6 13
Average training hours – management hour 10.96 22.65 9
Number of Occupational Disease Cases person 0 0 0
Average training hours – general staff hour 11.33 12.20 5.6
Annual training coverage % 53.27 100 83.9
Occupational Disease Incidence % 0 0 0
Training coverage – male % 54.20 74.2 89.7
Investment in Work Injury Insurance & Work Safety Liability Insurance 10,000 RMB / / 328.99
Training coverage – female % 50.78 65.6 68.4
Training coverage – management % 68.49 92.6 31.7
Coverage of Work Injury & Safety Insurance % / / 100
Training coverage – general staff % 51.62 70.1 92.2
Individual performance appraisal participation rate % / / 100 Work Safety Investment 10,000 RMB / / 1351.45
Safety Drills Held session 42 105 219
Employee Rights Protection Safety Training Sessions session 631 653 633
Indicator Unit 2023 2024 2025
Participants in Safety Training1 person 11474 13175 48973
Employee Satisfaction / Engagement Score score 77.20 78.20 81.40
Safety Training Coverage % 100 100 100
Employee Satisfaction Survey Coverage % 100 100 100
Labor Contract Signing Rate % 100 100 100 Percentage of Sites with Employee Health & Safety Risk Assessment % 100 100 100
Social Insurance Coverage Rate % 100 100 100
Supplier Participation in Safety Training person-time 1762 3822 1557
Occupational Health Examination Coverage % 100 100 100
Employee Coverage under Formal Collective % 100 100 100
Supplier Safety Training Coverage % 100 100 100
Agreements on Working Conditions
Employee Coverage by Elected Employee Represen- % 100 100 100 Data Notes:
Compared with 2024, the Zhenzhen Base conducted online safety awareness training for all employees in 2025, resulting in a significant increase in the number of training participants
compared with 2024.
tatives
Percentage of Employees Trained on Diversity, % 100 100 100
Anti-Discrimination and Anti-Harassment
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Supplier Management Scientific Research and Professional Competence
Indicator Unit 2023 2024 2025 Indicator Unit2023 2023 2024 2025
R&D Investment 100 million RMB 7.49 5.82 6.31
Total Number of Suppliers1 unit 282 263 460
R&D Investment as Percentage of Revenue % 4.56 4.98 6.92
Percentage of Target Suppliers That Signed Supplier Code of Conduct % 100 100 100
Number of Core Technical Personnel person 11 11 10
Percentage of Target Suppliers Assessed for CSR % 100 100 100 Cumulative Granted Patents piece 304 429 589
Cumulative Patent Applications piece 503 721 906
Number of Suppliers Undergoing On-Site Supply Chain ESG Audits unit / / 5
Patents Granted in the Year piece 91 136 160
Percentage of Suppliers with Contracts Including Environmental, Labor & Human Rights Clauses % 100 100 100
Patent Applications Filed in the Year piece 152 236 185
Number of Software Copyrights piece / / 6
Percentage of Suppliers Certified with Quality Management Systems % 100 100 100
Invention Patent Applications Filed During the Reporting Period piece / / 61
Percentage of Audited Suppliers Participating in Improvement or Capacity-Building % 100 100 100
Valid Patents in Force During the Reporting Period piece / / 589
Supplier ESG Training Sessions session / / 1 Invention Patents Applied in Core Business piece / / 128
Number of Suppliers Participating in ESG Training unit / / 24
Customer Service
Number of Suppliers Undergoing Mineral Supply Chain Due Diligence Audits unit 19 18 5
Indicator Unit 2023 2024 2025
Total Number of Key Suppliers unit 226 233 180
Customer Satisfaction score 95.3 96.5 94
Total Customer Complaints case 987 686 623
Number of Suppliers Classified as High ESG Risk unit 0 0 0
Customer Complaint Closure Rate % 95.85 90.38 97.27
Data Notes：
The statistical scope for indirect procurement suppliers covers those with an annual procurement value exceeding 10 million yuan.
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
Information Security
Indicator Index
ndex of Topics in the Self-Regulatory Guidelines for Listed Companies on the Shanghai Stock
Exchange No.14 – Sustainable Development Reports (for Trial Implementation)
Indicator Unit 2023 2024 2025
Corresponding Corresponding
Number of Information Security Incidents case 4 0 0 Dimension No. Topic Clauses Chapter
Number of Customer Information Leakage Incidents case 0 0 0
Losses from Violations of Relevant Laws and Regulations 10,000 RMB 0 0 0
Percentage of Operating Sites with TISAX AL2 Certification % / / 100
Information Security Emergency Drills session / / 2
Data Security & Customer Privacy Protection Training Sessions session / / 5
Rural Revitalization
Indicator Unit 2023 2024 2025
Total Investment in Rural Revitalization 10,000 RMB 109 129 133.96
Number of People Assisted with Employment person 12 12 10
Community Public Welfare
Indicator Unit 2023 2024 2025
Total Donations 10,000 RMB 15.15 34.11 22.12
Number of Employee Volunteers person 15 25 28
Volunteer Activities Organized session 9 12 15
Volunteer Participation person-time 72 89 92
Total Volunteer Service Hours hour 28 45 48
About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report
AA1000 Independent Assurance Statement Independence and Assurance capability
None of the members of the Eruid assurance team have any business possessing many years of auditing and ESG consulting experience. All
relationships with the reporting organization, its directors or senior relevant personnel have received professional training in AA1000
management, or department managers that would create a conflict of Assurance Standard v3 ("AA1000AS v3") of AccountAbility, GRI
To Farasis Energy (Ganzhou) Co., Ltd.: interest. The Eruid assurance team conducted this assurance Standards (GSSB), the International Financial Reporting Sustainability
Eruid (Shanghai) Inspection & Certification Co., Ltd. ("Eruid") is commissioned by Farasis Energy Technology (Ganzhou) Co., Ltd. ("Farasis Energy") to independently and neutrally. Disclosure Standards (ISSB), Sustainability Reporting Guidelines of the
conduct an independent limited assurance engagement on the environmental, social, and corporate governance information and data disclosed in 2. Eruid is accredited by AccountAbility. Our assurance team consists of Shanghai and Shenzhen Stock Exchange, and ESG Reporting Code of
the Farasis Energy 2025 Environmental, Social and Governance Report ("ESG report"), and to present the assurance findings and conclusions to the experienced professionals in the industry. Team members hold ACCA the Hong Kong Stock Exchange among other relevant standards and
readers and stakeholders of the ESG report in the form of issuing an independent assurance statement. guidelines.
Limitation
Assurance Scope
es, performance and related information of the Company in terms of suppliers, partners, or any other third parties of Farasis Energy. ing information; only the relevant factual evidence supporting these
environment, social and governance (ESG) disclosed in the ESG report 4.The information and data disclosed in the ESG report have already views was verified;
indicators disclosed in the report, but only confirmed that the sustain-
from January 1, 2025 to December 31, 2025. been assuranced or assured by an independent third party, and not able development performance indicators had clear data sources 4. In future reviews, Eruid will, based on the principle of continuous
tion of Farasis Energy and its subsidiaries. sustainable development information disclosure and management.
Assurance Conclusion
Assurance Standard
Eruid adopted the AA1000AS v3 Type 1 moderate level assurance to evaluate the reporting organization's adherence to the four AA1000 Account- sampled tests, Sustainable Development and ESG report of Farasis and impact included in AA1000AS v3, the detailed audit results are as
Ability Principles (AA1000AP, 2018) — Inclusivity, Materiality, Responsiveness, and Impact (the "Four Principles"). Energy does not contain any material misrepresentations. follows:
Assurance Information Source Principle Evaluation
Report Name: Farasis Energy 2025 Environmental, Social and Governance Report Farasis Energy identifies and reaches key stakeholders and obtains feedback through multi-channel communica-
Inclusivity tion. In 2025, the company comprehensively considered stakeholder concerns during the issue identification
Source: Farasis Energy
process and combined questionnaire surveys and communication mechanisms to form issue inputs.
Farasis Energy conducted a dual importance analysis, identifying 25 ESG issues and assessing and ranking them
Assurance Responsibility and Statement
Materiality from the perspectives of impact, risk, and opportunity. The substantive identification system is relatively
complete.
the report and the authenticity, accuracy and completeness of its with AA1000AS v3, and has provided a conclusion based on its
Farasis Energy has established corresponding management and disclosure mechanisms around the key issues
content, and for establishing an internal control system to support the assurance work. Except for providing independent assurance on the Responsiveness
identified, responding to stakeholder concerns through systems, performance indicators, and continuous
collection and disclosure of ESG data. verified facts corresponding to these conclusions and issuing this
improvement measures. The report discloses key performance information including greenhouse gas emissions,
energy and resource utilization, employee health and safety, and data security, and establishes corresponding
ed an independent limited assurance engagement on the matters inquiries for any other purpose, nor to any other person reading this
management systems and control measures.
Independent Assurance Statement of Opinion.
Farasis Energy has established an ESG governance and risk management system to identify and manage the
Assurance Schedule and Work Impact major environmental and social impacts of its operations, and to monitor these impacts through key indicators.
The report discloses information on the impacts, risks, and opportunities related to climate change, resource
utilization, and supply chain management.
In order to gather evidence relevant to forming our conclusions, we 4.Through interviews and document review, identify key stakeholders,
performed the following procedures: understand their expectations and concerns, and the reporting
ments, assurance scope, tasks, timeline, and expected deliverables; 5.Select key ESG information from the report, implement analytical
procedures and sampling verification to assess the reasonableness of general manager：
organization's management system, policies, and operational mecha- the relevant data and its consistency with the disclosed content; Assurance Provider: Eruid (Shanghai) Inspection & Certification Co., Ltd.
nisms regarding Environmental, Social, and Governance (ESG) matters; 6.Verify the inclusion, materiality, responsiveness, and impact principles Assurance Period: April 2026
appropriateness of this statement; Assurance Team: Eruid Sustainability Assurance Team
supporting evidence to assess their consistency with actual manage-
ment practices; 7.Perform other procedures deemed necessary by Eruid.
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