Sustainability
Report
SANY Heavy Industry Co., Ltd.
Contents
CONTENTS
Building on Exploring Low- Giving Back
Compliance for Carbon Pathways for to Society to
First-Class First-Class Make First-Class
About This Report 02
Governance
Board Statement 04 Corporate Governance 32 Climate Change Response 56 Philanthropy 98
Message from the Chairman 06 Risk Control 33 Environmental Management 66 Rural Revitalization 100
About SANY Heavy Industry 08 Business Ethics 35 Ecological Protection 68 Social Rescue 102
Double Materiality Assessment 14 Green Development 71
Sustainability Management 18
Feature 24
Driving Developing a
Upholding the Leadership of Globalization,
Digitalization, and Decarbonization to
Technological People-Centered
Explore New Pathways for the Development
of the Engineering Machinery Equipment
Innovation to Deliver Culture to Foster
Manufacturing Industry
First-Class Products First-Class Talent
Innovation-Driven 44 Compliant Employment 80 Quantitative Performance Table 106
Development
Talent Development 83 SSE Guidelines Index 111
Superior Quality 47
Employee Benefits 87 HKEX Guidelines Index 112
Sustainable Supply Chain 50
Health and Safety 90 GRI Index 115
SANY Heavy Industry Co., Ltd.
About This Report
About This Report
This report is the 2025 Sustainable Development Report released by SANY Heavy Industry Co., Ltd. (hereinafter referred to as
"this Report"). This report is a true reflection of SANY Heavy Industry actively fulfilling the economic, social, and environmental
responsibilities and achieving sustainable development, as well as a response to the key issues of concern to stakeholders.
This report has been reviewed by the Board of the Company, which is responsible for the authenticity and effectiveness of the
information contained herein. In the event of any data inconsistency, the annual report shall prevail.
Reporting Period Terminology
The reporting period covered by this report is from January 1, 2025 to December 31, 2025. To maintain the continuity of information, For the sake of expression and readability, SANY Heavy Industry Co., Ltd. is referred to in this report as "SANY Heavy Industry," "the
certain content has been retrospectively reviewed and extended. Company," and "we."
Reporting Scope Access to This Report
This report covers SANY Heavy Industry Co., Ltd. and its subsidiaries. This report is available for download and review on the official websites of the Shanghai Stock Exchange (www.sse.com.cn) , the official
website of the Hong Kong Stock Exchange (https://www.hkexnews.hk) and the Company (https://www.sany.com.cn/en/).
Data Sources
For any inquiries, please contact the Company's securities affairs department:
All information and data in this report are derived from the Company's official documents, statistical reports, and financial reports, as
well as information and data compiled, aggregated, and reviewed by the Company. This report is published in Chinese and English
versions. In the event of any discrepancy, the Chinese version shall prevail. Unless otherwise specified, the monetary unit used is RMB. Tel: 0731-84031555 Fax: 0731-84031555
Basis of Preparation Email: sanyir@sany.com.cn Postal code: 410100
This Report is prepared in accordance with the Guidelines No.14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies— Address: 5/F, New R&D Building, SANY Industrial Park, Liangtang Road, Changsha County, Changsha, Hunan
Sustainability Report (Trial) , the Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE — Compilation of Sustainable Province, China
Development Reports issued by the Shanghai Stock Exchange, Appendix C2 to the Listing Rules of The Stock Exchange of Hong Kong
Limited, the Environmental, Social and Governance Reporting Guide (hereinafter referred to as the ESG Reporting Guide ), and IFRS
Sustainability Disclosure Standard 2—Climate-Related Disclosures . It also references the "GRI Standards" of the Global Reporting Initiative
(GRI), the Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-ESG 6.0) of the Chinese Academy of
Social Sciences, and other authoritative standards domestically and internationally.
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SANY Heavy Industry Co., Ltd.
Board Statement
Board Statement ESG Risk Management and Material Topics
The Board assumes overall responsibility for environmental, social and governance (ESG)-related matters of SANY Heavy Industry The Board continues to pay close attention to the environmental and social risks and opportunities faced by the Company in the
Co., Ltd. (hereinafter referred to as "the Company"), and is responsible for overseeing the establishment and effective operation course of business management and incorporates them into the overall risk management system. Taking into account industry
of the Company's ESG strategy, management policies, and related risk management system. The Board of the Company has characteristics, regulatory requirements, and the key concerns of stakeholders, the Company identifies and evaluates ESG material
consistently regarded sustainable development as an important foundation for the long-term and steady development of the topics through stakeholder communication, industry benchmarking, and internal assessment, among other approaches, and develops
enterprise, and continues promoting the integration of ESG principles into the Company's strategic planning, business decisions, the Company's annual materiality matrix. The Board reviews the identification and assessment process for material topics and ensures
and daily operations, so as to advance the coordinated enhancement of enterprise value and social value. that the relevant topics are fully considered and effectively managed in the Company's strategy and operations and governance.
ESG Governance Structure ESG Target and Performance Oversight
The Company has established an ESG governance structure led by the Board. The Board is responsible for examining the Company's Focusing on key areas such as green, low-carbon development, technological innovation, employee development, and supply
ESG development strategy, major ESG risks, and important matters, and regularly hears reports from management employees on ESG chain responsibility, the Company has formulated relevant ESG targets and action plans and continuously monitors progress toward
work. The management is responsible for promoting the implementation of the ESG strategy across business units and coordinating these targets through regular assessment and performance tracking mechanisms. The Board regularly reviews the Company's ESG
related work such as environmental management, employee development, supply chain management, product responsibility, and achievements and the performances of related indicators and, based on changes in external policies and industry development trends,
compliance governance. Through a cross-departmental collaboration mechanism, the Company continues to promote the building of makes necessary optimizations and adjustments to the Company's ESG strategy and management measures.
the ESG management system to ensure the effective execution and continuous improvement of ESG-related work.
In the future, the Board of the Company will continue to strengthen ESG governance capacity building, promote the coordinated
development of environmental protection, social responsibility, and corporate governance, continuously enhance our sustainable
development, and create long-term value for customers, employees, shareholders, and society.
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SANY Heavy Industry Co., Ltd.
Message from the Chairman
Message from the Chairman
In 2025, the global industrial landscape is undergoing We adhere to globalization development and chart a new We remain committed to decarbonization-driven develop?
profound changes unseen in a century, and the course through coordinated domestic and international ment and to contributing the "green strength" of the
whirlwind of technological revolution is sweeping advancement. With the resolve that "if we do not go global, we equipment manufacturing industry. While promoting industrial
through manufacturing at an unprecedented pace. will be left behind," we are making every effort to advance our upgrading, we have consistently regarded green development as
Facing the "super technology window" brought about globalization development strategy. From the completion and an important component of our long-term corporate strategy. The
by the convergence of the Fourth Industrial Revolution commissioning of the overseas lighthouse factory in Indonesia Company continues promoting a development model of "product
and the Third Energy Revolution, SANY Heavy Industry to our products reaching more than 150 countries and regions electrification upgrades + green industrial chain coordination,"
has always upheld its original aspiration of "Quality globally, we have exported not only high-quality manufacturing with sales of major products such as electric excavators and mixers
Changes the World," taking the three core strategies— from China, but also leading standards and management continuing to lead the market. To address global climate change, we
globalization, digitalization, and decarbonization— as experience in intelligent manufacturing. In 2025, the localization systematically carry out climate risk and opportunity assessment,
its core engines, deeply integrating into the new stage rate of our overseas workforce approached 70%, and we enhance climate resilience, and contribute SANY's strength toward
marked by the conclusion of the nation's 14th Five- successfully launched high-end products such as the 400-tonne- global dual carbon goals and climate change response.
Year Plan and the planning of the 15th Five-Year Plan, class mining excavator. On international stages such as Bauma
and making solid strides on the path of high-quality 2025 and the China-Africa Economic and Trade Expo (CAETE), Adhering to a people-centered approach, we stimulate
development. SANY products won recognition from customers globally. organizational vitality. In 2025, through a comprehensive
Through global resource allocation, we are accelerating the talent development and incentive system, we enabled more
enhancement of the Company's global capabilities and fostering than 5,300 employees to share in the achievements of enterprise
the development of new quality productive forces. development. We are committed to nurturing an open, inclusive,
and vibrant organizational environment, so that every employee
We remain committed to digitalization-driven development can achieve personal growth through innovative practice.
and to winning this decisive turnaround battle in transforma??
tion. We are promoting the entire value chain of R&D, manufacturing, We shoulder responsibility and move forward together
SANY Heavy Industry Co., Ltd. and operations from "partial intelligence" to "holistic intelligence." with society. A s an important force in the equipment
manufacturing industry, we have always closely integrated
In 2025, leveraging our self-developed AI agent platform, we used
Chairman Xiang Wenbo AI to empower more business scenarios. At the Kunshan factories, enterprise development with social responsibility. In the face
integrated intelligent innovation reduced production data latency to of disasters domestically and internationally, including floods
to 15 minutes, and raised the accuracy rate of visual quality inspection the earthquake in Myanmar, the Company's equipment and
to as high as 99.5%. Practice has shown that digital and intelligent employees have consistently rushed to the front line, putting
technologies not only reshape production methods, but also unlock into action the simple belief that "national responsibility takes
new growth momentum for the traditional manufacturing industry. precedence over corporate profits."
Looking ahead, we will continue to uphold long-termism, steer by
the strategy of globalization, digitalization, and decarbonization,
and driven by technological innovation, continuously promoting
China's engineering machinery industry to a higher level and
contributing to the building of a greener, smarter, and more
sustainable world.
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SANY Heavy Industry Co., Ltd.
About SANY Heavy Industry
About SANY Heavy Industry
Company Profile
Listed on July 3, 2003, Sany Heavy Industry (600031.SH) holds the distinction of being the first enterprise in China to successfully
achieve full circulation through the reform of the equity division. In July 2011, Sany Heavy Industry accomplished another major Concrete he main products include truck-mounted concrete pumps, trailer pumps, truck mixers, and
T
feat by securing its place in the FT Global 500 list. Notably, it is the only Chinese construction machinery company on the list. The
Machinery concrete batching plants.
year 2012 witnessed a pivotal moment in Sany Heavy Industry's journey, as it completed the cross-border acquisition of Germany's
Putzmeister, a globally renowned leader in concrete machinery, and acquired a stake in Austria's Palfinger, a recognized global ainly used in railway, highway, metro, hydropower station, metallurgical engineering and
M
leader in truck-mounted crane machinery. Fast-forward to May 13, 2021, when Sany Heavy Industry secured a spot in the Forbes other infrastructure construction as well as the real estate industry.
Global 2000 list, ranking 468th. This marked its debut in the Global 500 for the first time, positioning it as the top-ranked Chinese
company and the second-ranked global leader in engineering machinery on the list.
SANY Heavy Industry's leading products include full series of products such as concrete machinery, earthmoving machinery, cranes,
road construction machinery, and piling machinery. The Company's concrete machinery has maintained its position as the world's Earthmoving Mainly includes crawler excavators, wheeled excavators, loaders, etc.
No. 1 brand. In2020, our excavator sales topped the global rankings for the first time. Machinery
Mainly used in agriculture, water conservancy, railways, highways, construction, real estate, and
SANY Heavy Industry has established a global presence, with industrial parks in Beijing, Changsha, Shanghai, Kunshan, Chongqing, and mining industries.
other locations in China, as well as overseas R&D and manufacturing bases in India, the United States, Germany, Brazil, and Indonesia.
Upholding the mission of "Quality Changes the World," SANY Heavy Industry invests more than 5% of its annual sales revenue in R&D
and is committed to delivering world-class products. Leveraging its strengths in technological innovation, SANY Heavy Industry has won
the "State Scientific and Technological Progress Award" four times and the "State Technological Invention Award" twice, making it the
recipient of the highest honors ever granted in the construction machinery sector since the founding of the People's Republic of China. Mainly includes truck cranes and crawler cranes.
Cranes
Supported by first-class product quality, SANY equipment has participated extensively in landmark projects globally, including the Burj Cranes are widely used in industries such as power, steel, bridges, shipbuilding, and petrochemicals.
Khalifa, Beijing Olympic venues, London Olympic venues, Brazil World Cup Stadium, Shanghai Tower, Hong Kong International Finance Among them, small truck cranes are mostly used in municipal projects and other general cargo
Center, the Hong Kong-Zhuhai-Macao Bridge, Beijing Daxing International Airport, and Xiong'an New Area. operations, while large truck cranes and crawler cranes are used in industries such as power, steel,
shipbuilding, and petrochemicals.
Piling he main product is rotary drilling rig, mainly used in municipal engineering, highway and bridge
T
Machinery construction, industrial and civil buildings, underground diaphragm walls, water conservancy, anti-
seepage slope protection, and other foundation engineering applications.
Road
I ncludes rollers, pavers, graders, and asphalt batching plants, mainly used in the construction of
Construction
pavement works on highways, urban roads, and airport runways.
Machinery
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SANY Heavy Industry Co., Ltd.
About SANY Heavy Industry
Honors in 2025
Forbes Global 2000 Hurun China 500 Guinness World Records "Highest water jet from a fire
Excellence-level smart factory
(maintaining the top position in China's (maintaining the top position in China's truck (prototype)" (JP100 aerial water tower fire truck,
(3)
construction machinery industry) construction machinery industry) jet height of 159.66 meters)
Forbes Hurun Research Institute Guinness World Records The Ministry of Industry and Information
Technology in China
China 500 List
Fortune
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SANY Heavy Industry Co., Ltd.
About SANY Heavy Industry
ESG Performance Highlights in 2025 Exploring Low-Carbon Pathways for First-Class Practice
Annual environmental protection investment reached RMB 280 million, with energy-saving and consumption-reduction
initiatives delivering cumulative savings of RMB 72 million during the year.
Three Core Strategy of "Globalization, Digitalization, and Decarbonization"
Of the 22 subsidiaries engaged in complete vehicle and component manufacturing, 12 have obtained ISO 14001
Environmental Management System certification, representing a certification coverage rate of 54.5%.
The international main business revenue reached RMB 55.9 billion, increasing by 15.14% year-on-year; the
proportion of international main business revenue was 64%. 100% of subsidiaries have secured pollutant discharge permits, with wastewater, exhaust gas, and boundary noise
emissions fully compliant with applicable standards. Hazardous waste is handled in 100% compliance, with no cases of
The coverage rate of intelligent overseas factories increased to 60%, and the localization rate of overseas excessive discharge recorded.
personnel approached 70%.
Photovoltaic power generation systems have been deployed across all 22 subsidiaries. Total clean energy
The Company's products have covered more than 150 countries and regions globally; it promoted 60 products to
consumption reached 77.3656 million kWh, accounting for 14.7% of overall energy use.
the global market, developed 20 new products, and successfully launched the 400-tonne-class mining excavator.
The Company has advanced the implementation of a total of 29 innovation projects, with annual service calls of
Developing a People-Centered Culture to Foster First-Class Talent
the agent platform exceeding 4.5 million
The Industrial Internet of Things (IoT) platform has covered 46 factories across 23 industrial parks, connected
The labor contract signing rate was 100%, and no major labor disputes, strikes, or major layoffs occurred in the past three years.
Internet of Things data. Employees came from more than 40 ethnic groups, with 3,804 female employees, and women accounted for
The Company launched an employee stock ownership plan valued at approximately RMB 523 million, covering
Building on Compliance for First-Class Governance During the year, 1,451 employees newly obtained professional certifications, including 715 external certifications; the
Company supported outstanding employees in pursuing further studies at universities, with 20 new participants added
Convened 1 Annual General Meeting and 5 Extraordinary General Meetings; held 10 Board meetings, with a during the year, bringing the cumulative total to 289.
Conducted 33 risk control training sessions throughout the year, covering 2,046 participants. percentage of employees trained reached 94.6%, and the average training duration per person was 140.56
hours. 407 employees in need received support, with RMB 550,000 in relief funds granted.
Achieved a 100% signing rate of integrity and anti-corruption commitment letters among directors, employees
in key positions, business personnel, and mid-level managers in the manufacturing division, totaling 3,446 An annual employee service satisfaction survey was conducted, covering more than 60,000 person-times, with an
signatories. overall satisfaction score of 95.75.
Handled 95 integrity-related complaints and reports, with a 100% resolution rate. Among the 22 main machine and parts manufacturing subsidiaries, a total of 10 subsidiaries passed external
reviews and obtained the ISO 45001 occupational health and safety management system certification.
Achieved full coverage (100%) of anti-corruption audits across core business processes.
The occupational health and safety targets for the year were achieved, with the thousand-person injury rate at
Achieved a 100% signing rate of integrity cooperation agreements and commitment letters with suppliers. 1.33‰ , the completion rate of three-level safety education training at 100%, the number of occupational disease
cases at 0, and occupational health examination compliance at 100%.
A total of 202,837 cumulative participants attended health and safety-related training, with cumulative training
hours reaching 365,478 hours. Work safety responsibility exams were conducted, with 25,000 cumulative
Driving Technological Innovation to Deliver First-Class Products participants, and a passing rate of 100%.
R&D investment reached RMB 5.169 billion, accounting for 5.79% of main business revenue; the Company
had a total of 5,720 R&D personnel, representing approximately 20.09% of total employees. Giving Back to Society to Make First-Class Contributions
The Company filed 596 domestic patent applications and obtained 820 authorizations; it filed 23
international patent applications and obtained 47 authorizations overseas; it also obtained 68 computer Total donations to various public welfare funds amounted to approximately RMB 22.36 million, with cumulative
software copyrights. donations exceeding RMB 360 million.
The customer satisfaction survey score was 93.0 points, and the customer satisfaction rate for complaint The "SANY Public Welfare" platform registered 28,658 volunteers, established 62 volunteer teams, and conducted
handling was 84.1%. activities across 23 cities nationwide, with cumulative volunteer service hours reaching 11,205.7 hours.
The supplier satisfaction survey score was 4.351 points, which was an increase compared to previous years.; During the reporting period, volunteer services engaged 1,860 participant instances, benefiting 2,926 individuals.
targeted support and capability enhancement were provided for 190 suppliers. Total disaster response duration reached 51 days during the year, with 32 units of construction machinery
deployed and 72 personnel mobilized.
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SANY Heavy Industry Co., Ltd.
Double Materiality Assessment
Double Materiality Assessment SANY Heavy Industry Stakeholder Communication Strategy
Communication Channels & Feedback
Stakeholders Key Concerns
In accordance with the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Methods
Report (Trial) , SANY Heavy Industry identifies sustainable development-related material topics by following the principle of
"double materiality." This principle requires consideration of both the impact of topics on the Company's finance value (financial
C
orporate governance
materiality) and the impacts of the Company's business activities on the economy, the environment, and society (impact
Business ethics
materiality). Through a comprehensive assessment of these two dimensions, we identify topics that are critical to the Company's
long-term value creation and have substantial impacts on internal and external stakeholders, so as to ensure that sustainability Circular economy
management is closely aligned with the Company's core strategy and social responsibility. Pollutant & waste management On-site inspections
Government
Climate change response Meetings and discussions
departments/regulators
Material Topic Identification
E
nvironmental compliance Field investigations
management
Biodiversity conservation
E
nergy management
The Company identifies material sustainable development topics through a systematic process, with extensive reference to
mainstream standards and industry practices domestically and internationally, while taking into account its own business
characteristics and strategic direction to develop a preliminary list of topics. At the same time, we supplement and refine this list of C
orporate governance G
eneral meeting of shareholders
topics through communication with management employees, analysis of industry trends, and research on policies and regulations, Shareholders ESG management Field investigations
so as to ensure that the topics cover the core areas of Environmental, Social and Governance (ESG) and are aligned with the actual Business ethics Roadshows
circumstances of the Company's operations.
Corporate governance Corporate announcements
Impact Materiality Assessment
ESG management Investor meetings
Investors
Product quality & safety Roadshows
R
esearch & innovation C
onference calls
The impact materiality assessment systematically identifies and measures the key environmental and social impacts arising from
the Company's business activities. By establishing three core assessment frameworks covering the core requirements of stock E
mployee rights & benefits E
mployee training
exchanges, the level of attention from industry peers, and the requirements of international institutions such as MSCI, the Company Employees Health & safety Union activities
comprehensively analyzes the severity, breadth, and reversibility of the potential impacts of its ESG topics. At the same time, we fully Employee training & development Employee satisfaction surveys
incorporate feedback from internal and external stakeholders in the assessment process and ultimately derive the conclusions of
the materiality assessment, providing a clear basis for decision-making for the Company's strategic resource allocation, risk control Supply chain management
priorities, and sustainable value creation.
Product quality & safety
On-site assessments
Business ethics
Q
uality communication
Suppliers
Stakeholder Communication
D
ue diligence
Supplier training and support
Environmental compliance
General meetings of suppliers
Management
P
ollutant & waste management
To understand stakeholders' views on the Company's decisions regarding the impact materiality of ESG topics and to meet their
expectations and demands, the Company actively maintains close communication with all parties through diversified communication
channels, while providing timely responses and effective engagement on the core topics of concern to different participants across the P
roduct quality & safety
Market research
value chain. Climate change response
Customer satisfaction surveys
Customers Research & innovation
Press conferences
Data security & customer privacy
Online and offline campaigns
protection
R
ural revitalization & social
contribution C
ommunity discussions
Communities, public,
Circular economy Community engagement
and NGOs
C
limate change response Online outreach
Biodiversity conservation
Due diligence Strategic cooperation
Partners
Business ethics Executive-level exchanges
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SANY Heavy Industry Co., Ltd.
Double Materiality Assessment
Financial Materiality Assessment Double Materiality Assessment Results
The financial materiality assessment aims to systematically analyze how sustainability topics are translated into actual financial Based on the above double materiality assessment, the Company has ultimately identified the materiality topic matrix of sustainable
impacts through the Company's specific operations. This assessment focuses on the core business processes directly associated with development material topics that require priority attention, management, and disclosure during this reporting period. These topics are
each topic, including raw material procurement, R&D, construction manufacturing, production, logistics and warehousing, aftermarket of high priority in the Company's strategy and are a focus of decision-making and resource allocation by management employees. The
service, and downstream customer interactions, among other full-process nodes, and analyzes the specific financial performance they specific content, management approaches, and performance of the relevant topics will be elaborated in detail in subsequent sections
may trigger in the daily and overall operations of the enterprise. of this report.
The Company's financial materiality assessment specifically covers various financial impacts arising from risk management,
efficiency improvement, innovation, and relationship maintenance, such as risk-related expenditures including potential fines and Materiality Topic Matrix
compensation, production interruption losses, quality costs, and emergency procurement premiums, as well as benefits realized
through savings in raw materials and energy use, sales revenue from green products, tax incentives, increased customer share, and
optimized financing costs. At the same time, we also pay attention to the necessary investments made to safeguard operations, such
as costs related to safety corrective actions, technology R&D, and employee training. High
By closely linking specific topics, business processes, and clear financial impact pathways involving revenue, costs, assets, liabilities, R&d and innovation Employee rights Supply chain
and cost of capital, we are able to precisely identify the key financial drivers that affect the Company's value, thereby providing a and welfare management
Data security and customer privacy protection
substantive basis for decision-making on strategic resource allocation, operational risk control, and long-term value enhancement.
Climate change Product quality and
response safety
Health and safety Customer service
Financial materiality
Water resource Environmental Energy management
utilization compliance Business ethics
Corporate governance management
Pollutant and waste management
Rural revitalization and Biodiversity
Circular economy
social contribution conservation
Employee training and Due diligence
development
Low Impact materiality High
Environmental Social Goverance
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SANY Heavy Industry Co., Ltd.
Sustainability Management
Sustainability Management
SANY Heavy Industry has built a systematic, multi-level, and comprehensive ESG management framework. Through a clear
governance structure, a strategic pathway that integrates with its core business, science-based ESG risk control mechanisms, and Strategy
internationally aligned indicators and targets, the Company comprehensively promotes sustainable development practices and
continuously creates long-term value. To systematically address the challenges and opportunities of sustainable development, SANY Heavy Industry has deeply integrated
Governance
the three core strategies—globalization, digitalization, and decarbonization—into its ESG management framework, and has conducted
dedicated analysis of risks and opportunities for financial material topics. We formulate and execute corresponding response measures
in light of market trends to ensure that the Company's ESG strategy remains sufficiently resilient, can dynamically adapt to internal and
To achieve scientific, systematic, and standardized management of the environmental, social, and corporate governance system, external changes, and continuously advances the achievement of sustainable development targets.
SANY Heavy Industry has formulated the Detailed Working Rules for the Sustainability Committee and established a three-tier ESG
management structure composed of the Board, the Sustainability Committee, and the Sustainable Development Working Group. Short to Medium to Short, medium,
Meanwhile, the Sustainability Committee convenes at least one regular meeting each year and may hold extraordinary meetings when medium term long term and long term
necessary, ensuring the continuous promoting and effective implementation of ESG-related work. SANY Heavy Industry Risk and Opportunity Management1
Division of ESG Management Responsibilities
Reporting
Type Area Level Overview Response Measures
Period
Makes final decisions on sustainable development work and approves the Company's ESG vision, target,
The Board strategy, and major policies, including management policies for key topics such as environmental
E
stablish a tiered and categorized performance and compensation
matters, business ethics, and health and safety. system, implement multi-channel incentives such as incremental
As competition for talent intensifies profit sharing and incentivizing innovation, and safeguard
eceive reports from the Sustainability Committee on ESG-related matters, including esg risk management,
R and employees' expectations for remuneration competitiveness.
performance outcomes, and the review of ESG disclosures; and oversee the incorporation of key esg career development and work I mprove "Talent promotion pathways," implement succession plans
experience continue to rise, whether and specialist talent management, and provide employees with
performance indicators, such as environmental, health, and safety metrics, into executive compensation Risk/ Employee the Company can establish a competi? systematic training and career growth support.
frameworks. Opport? rights and High tive incentive system, provide clear
unity benefits career development pathways, and I mprove the system of workers and staff congress and labor unions,
keep diversified communication channels such as the Chairman's
Reviews and approves ESG-related disclosure documents issued by the Company, ensuring compliance safeguard employees' democratic
rights and care will directly affect Mailbox open, and regularly conduct employee satisfaction surveys
with regulatory requirements and responding to the concerns of investors and rating agencies. and service improvement.
talent attraction, retention, and
organizational effectiveness. I mplement support mechanisms for employees in need, regularly
organize cultural, recreational, and mental health activities, and
Strategic planning: coordinates and promotes ESG system building, formulates the Company's ESG vision, enhance employees' sense of belonging and organizational cohesion.
Sustainability target, and strategy, and focuses on the long-term management of environmental opportunities such as
E
stablish a three-tier governance structure of the "Board-
Committee climate change and clean technologies, as well as social topics such as business ethics and health and safety.
Sustainability Committee-intelligent manufacturing management
department" to clarify the HSE strategic oversight and management
Risk control: identifies, evaluates, and continuously monitors material ESG risks and opportunities, responsibilities at each level.
including corruption and business ethics risks, environmental compliance risks, and occupational health Operational risks faced by manufactur?
ing businesses are complex. Once a S
trictly implement the ISO 45001 system, improve institutional
and safety risk, and provides relevant management recommendations to management employees. safety accident occurs, it may severely processes, and strengthen graded risk management and hazard
Risk/ affect employees' lives and health, the identifications Governance.
Health
Research and guidance: studies, examines, and guides the formulation of the Company's core ESG Opport? High Company's operations, reputation, C
onduct full-coverage safety training and emergency drills. In 2025,
and safety
policies, including codes of conduct for environmental matters, business ethics, health and safety, and unity and compliance. Meanwhile, a sound the Company organized more than 480,000 participants in training
HSE system is a core competitive sessions and conducted 440 drills, enhancing the safety awareness
the supply chain, and promotes their effective execution.
strength for attracting talent and and emergency response capabilities of all employees.
safeguarding stable production.
Supervision, audit, and training: supervises the establishment, operation, and certification maintenance of I ntegrate contractors and other stakeholders into unified safety
management and implement whole-process supervision. Continue
the Company's ESG management system, regularly audits ESG performance, environmental impacts, and
to carry out occupational health monitoring and mental health
compliance status, and ensures smooth whistleblowing channels and the provision of relevant training. support to safeguard employees' physical and mental health.
O
ther matters: conducts research and provides recommendations on other major sustainable development The stability, compliance, and
matters, and handles other related matters authorized by the Board. sustaina?bility of the supply chain face I mprove all stages of supplier management, strictly implement
multiple risks, including geopolitical admission review, performance evaluation, and tiered elimination
tensions, trade frictions, raw material mechanisms, leverage the iGSP platform to realize digitalization
price fluctuations, extreme weather, and transparency throughout the entire procurement process, and
and suppliers' own business regularly conduct risk screening and disposal.
Sustainable Develop? Supply management and ESG performance, D
eeply integrate ESG requirements into the supply chain by
Risk/
ment Working Group Meeting affairs and execution: prepares meetings of the Sustainability Committee, implements the Opport?
chain
High
w h i c h m a y a f fe ct p ro d u ct i o n incorporating key indicators such as environmental, human rights,
manage? continuity, cost control, and brand quality, and business ethics into the review process, and promote
Committee's various resolutions, and coordinates all departments in the execution of ESG-related unity
ment reputation. At the same time, suppliers' energy conservation, emissions reduction and green
policies and action plans. digitalization-enabled collaboration, transformation to jointly build a responsible supply chain.
green procurement, and supply chain E
stablish the "Supplier Alliance" and deepen collaboration through
D
aily supervision: continuously supervises the execution of the Company's ESG work and collects and resilience building are important technical exchanges, special support, and satisfaction surveys to
opportunities to improve efficiency, enhance the overall capability and resilience of the supply chain and
sorts ESG performance data to support management decision-making and external disclosure. reduce risks, and create competitive safeguard the security of critical material supply.
advantages.
For more details, please refer to Climate Change Response.
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SANY Heavy Industry Co., Ltd.
Sustainability Management
Short to Medium to Short, medium, Impact, Risk and Opportunity Management
medium term long term and long term
To standardize the Company's ESG risk management, SANY Heavy Industry has incorporated ESG risks into the Company's overall risk
Reporting
Type Area Level Overview Response Measures management system and systematically carried out whole-process management covering risk identification, analysis and assessment,
Period
control, response, and continuous improvement.
Product quality defects or safety
hazards may lead to safety incidents, e have enhanced the digital quality management system, strictly
W
product recalls, and customer claims, controlled all processes including design, incoming materials,
seriously damaging brand reputation production, and after-sales service, and used the quality information
and market trust and triggering system to enable real-time monitoring of problems and implement
compliance risks. As technology closed-loop management.
complexity and regulatory require-
Risk/ Product
ments increase, the difficulty of
We have formulated the "Accountability Management System for Impact, Risk and Opportunity Management Process of SANY Heavy Industry
Opport? health and High Major Quality Defects " and regularly carried out certification of
risk control also rises. Through
unity safety the quality management system to prevent major product safety
digitalization-based and refined
incidents.
quality management covering the
entire process from R&D to after- e have strengthened quality management with suppliers, used
W
sales service, the Company can quality manage?ment as the standard for access and evaluation, and
systematically reduce risks, deliver implemented supplier quality inspection and provide to safeguard
superior quality, and build a core product quality at the source. Risk identification Risk analysis and assessment
competitive advantage.
Inefficient customer response, impro? Starting from the three dimensions of environmental, Risks identified are analyzed and assessed across
per complaint handling, or customer e have upgraded the digitalization-based customer service system,
W social, and governance, and centering on the three dimensions—degree of impact, frequency of
data leakage may directly lead to standardized complaint handling standards and procedures, and
customer loss, lower satisfaction, identified ESG topics, the Company systematically occurrence, and degree of harm—and are classified
continuously tracked processing progress and make improvements.
legal proceedings, and reputational identifies relevant risks in its operations and based on the scoring results into three levels (high,
e have built a sound data security and privacy protection system,
W
damage. In the era of digitalization, gradually establishes and regularly updates an ESG medium, and low), thereby determining the order of
clarified requirements for all-stage management of data, implemented
Risk/ customers' expectations for service
Opport?
Customer
High e f f i c i e n c y, t ra n s pa re n c y, a n d
system security certification, data protection measures, and risk database. priority for risk management.
service employees' compliance training, and strictly prevented information
unity privacy protection continue to rise.
leakage incidents.
Upgrading the service system through
digitalization, strengthening privacy e have enhanced key account management and multi-channel
W
protection, and deepening customer customer communication, regularly conducted a satisfaction survey,
communication are key opportunities integrated customer feedback into the optimization of products and
to enhance customer loyalty and service, and enhanced customer experience and brand recognition.
unlock long-term value.
Amid the global industrial transform?
ation toward digitalization, intelli??gence, e have defined the three-core strategy of globalization,
W Risk response Risk management
and sustainability, technological digitalization, and decarbonization, established a three-tier R&D
iteration is accelerating and customer management structure comprising the R&D Technical Committee,
the seven technical committees, and the specialized technical
demands are evolving. Companies
subcommittees, and improved governance documents such as For medium- and high-level risks, corresponding Based on risk assessment results and differences in
that underinvest in R&D, maintain
rigid innovation mechanisms, or the R&D Project Input-Output Management Measures . risk response procedures and contingency plans are risk levels, graded and categorized control measures
pursue directions misaligned with e have implemented diversified incentive and talent development
W developed to ensure timely and effective response and are formulated and implemented. High risks are
Risk/
R&D and market needs risk falling behind mechanism, with dedicated incentive programs targeting key disposal in emergency situations. addressed with comprehensive control plans,
Opport? High
innovation in core technologies, declining focus areas. We have launched systematic R&D training and
unity
product competitiveness, and loss of certification programs to build a structured professional talent while medium risks are managed through targeted
market share. Conversely, building pipeline. initiatives to ensure effective implementation of risk
a forward-looking, efficient, and have established active industry-academia-research collaboration
We prevention and control.
open innovation ecosystem can lead with universities such as Dalian University of Technology. Through joint
industry technological development, R&D and technical exchange, we use external expertise to tackle cutting-
create differentiated product edge technological challenges and accelerate the commercialization of
advantages, and shape a green and innovative outcomes.
intelligent brand image.
The Company has accumulated
extensive operational data, customer e have established a data compliance management structure
W
information, and product data. Any guided by the responsible Board Director, and formulated policies
incidents of data breach, tampering, such as the Data Security Management Policy and Customer Privacy Summary and continuous improvement
misuse, or non-compliant cross- Policy to define management requirements and accountability for
border data transfer could directly data security and customer information.
Data result in the collapse of customer
e have implemented security measures including disaster recovery
W ESG risk management work is summarized annually, changes in internal and external risk trends of the Company are
security trust, exposure to substantial litigation
Risk/ backup and data sandboxing for core IT systems. We have obtained analyzed, and control and response measures are continuing to optimize in light of industry developments, so as to
and and regulator y penalties, and
Opport? High Certifications such as ISO 27001 (Information Security Management
unity
customer severe damage to brand reputation.
System) and Cybersecurity Classified Protection assessments. continuously enhance the level of ESG risk management.
privacy At the same time, building an
protection industry-leading data security and e have signed cross-border data transfer agreements with overseas
W
privacy protection framework is a subsidiaries and other relevant parties. We have conducted 100%
cornerstone for earning the trust of compliance review at the system initiation and go-live stages. We
customers and partners, ensuring signed and reviewed the Information Security and Confidentiality
the resilient operation of digital Agreemen t with partners on a regular basis, incorporating third-party
businesses, and fulfilling corporate risks into the overall risk management framework.
social responsibility.
< 20 21 >
SANY Heavy Industry Co., Ltd.
Sustainability Management
Metrics and Targets Social
Employee rights 4.1 Compliant employment
We actively respond to the United Nations Sustainable Development Goals (UN SDGs). Based on our own professional strengths and
and welfare 4.3 Employee benefits
resources, we focus on priority goals that are highly relevant to our operations and commit to taking specific actions on relevant social
and environmental topics. We have deeply integrated ESG targets into our development strategy and daily operations, advancing
sustainable development in tandem with core business metrics. Employee training and
development
Response to the United Nations Sustainable Development Goals Health and safety 4.4 Health and safety
Data security and customer
privacy protection
Rural revitalization and
social contribution
Supply chain management 2.3 Sustainable supply chain
Environmental
Product quality and safety 2.2 Superior quality
Climate change tackling
response
R&d and innovation
development
Usage of water resources 3.4 Green development
Customer service 2.2 Superior quality
Pollutant and waste management 3.3 Ecological protection
Energy management 3.4 Green development
Governance
Environmental compliance 3.2 Environmental
management management
ESG governance
Ecosystem and biodiversity Corporate governance
protection
Due diligence 1.2 Risk Control
Circular economy 3.4 Green development
Business ethics 1.3 Business ethics
< 22 23 >
SANY Heavy Industry Co., Ltd. Feature: Upholding the Leadership of Globalization, Digitalization, and
Engineering Machinery Equipment Manufacturing Industry
Globalization of Operations Localized Operations and Service
Adhering to the business strategy of "group leadership, local operation, and As of the end of the reporting period
service first," the Company continues to improve its global marketing and service
the localization rate of overseas
Feature
network. By establishing overseas regional and country offices as platforms for
strategic planning and empowerment, the Company advances deep localization in
management and operations. personnel was close to %
forming a global talent pipeline.
Upholding the Leadership of Globalization, Digitalization,
and Decarbonization to Explore New Pathways for the
Case? ? SANY Heavy Industry Participates in the 34th Bauma 2025
Development of the Engineering Machinery Equipment On April 13, 2025, SANY Heavy Industry appeared at the 34th Bauma 2025, themed "A World of Efficiency—Partners
Manufacturing Industry
for Excellence." During the exhibition, the Company showcased 66 high-end equipment units, including compliant
products and electrified equipment customized for the European market, attracting great attention from professional
Against the backdrop of profound changes in the global industrial landscape, SANY Heavy Industry takes the strategy of customers globally. Meanwhile, the live demonstration of the Mechlink intelligent excavation system attracted more
"globalization, digitalization, and decarbonization" as its guidelines, comprehensively promoting enterprise transformation than 200 participants to experience it firsthand with its intelligent, safe, user-friendly, and efficient product features,
and industrial upgrading. We take digitalization technology as the core driving force to lead the deep integration of digitalization fully demonstrating the company's technological strength in areas such as intelligent and green development.
with product innovation, intelligent manufacturing, and intelligent operations, while continuously promoting the global layout
from "exporting products" to "industrial globalization" and accelerating the development of an efficient and collaborative
global value chain. At the same time, we remain firmly committed to low-carbon development and actively promote the R&D
and application of electrification, hybrid, and clean energy technologies, injecting green momentum into the sustainable
development of the global equipment manufacturing industry.
Adhering to Globalization Development and Advancing a New
Phase Through Coordinated Domestic and International Efforts
The Company, adhering to the resolve that "if we do not go global, we
will be left behind," regards globalization as its primary development SANY Heavy Industry Exhibition Area Customers Experience the Mechlink Intelligent Excavation System
strategy and drives a profound transformation from "product exports"
to "industrial globalization" Through the global deployment of the
full industry chain spanning R&D, manufacturing, sales, and service,
the Company actively fosters new quality productive forces and
continuously opens a new landscape for globalization development. Globalization of Products Building a Coordinated R&D System
Globalization of Manufacturing Building a Global Manufacturing Network The Company has established a "1+5+N" globally coordinated R&D system. The "1" refers to the China global R&D center as the
hub; the "5" refers to five major R&D bases in Germany, the United States, Japan, India, and Indonesia, focusing on the emerging
The Company has deeply advanced localized production overseas and is steadfastly promoting the globalization of needs and compliance standards of regional markets; and the "N" refers to leveraging the global sales network to extensively
manufacturing. In the international market, in addition to continuously upgrading factories in the United States and Germany, we collect scenarios and customer feedback, thereby responding precisely to local market needs. Through deep localized innovation,
have also built new overseas factories in Indonesia, South Africa, and Türkiye, accelerating the globalization of manufacturing and the Company has successively launched excavators that comply with the Euro V Emissions standard2, electric mixers that have
actively promoting the replication, application, and upgrading of China's intelligent manufacturing standards. obtained EU Whole Vehicle Type Approval (WVTA), and customized special-purpose models for regions such as Africa and the
Middle East featuring high-temperature resistance and sand and dust protection, thereby forming a product matrix that covers
Case? ? China's Manufacturing Goes Global to Realize the Localization of Intelligent different market segments and operating-condition requirements. By the end of the reporting period, the Company's products
Manufacturing Bases had covered more than 150 countries and regions globally, achieved rapid growth in mature high-end markets such as Europe
and the United States, and established a competitive position alongside rivaling international brands.
SANY Heavy Industry has systematically exported China's advanced intelligent manufacturing system, green technology,
and management standards globally, completing a strategic upgrade from single-product trade to deeply localized
In 2025
operations. Based on the industrial foundation and market demand of different regions, the Company has precisely
established the intelligent manufacturing bases in Indonesia and India, building a global manufacturing network that Products launched Products newly Brought to the
is collaborative, efficient, and uniquely differentiated. Through technology empowerment, supply chain integration, on the global market developed market
and green operations, the company has deeply integrated China's standards with localized innovation, significantly
enhancing its global competitiveness and sustainable influence in the global market.
As of the end of the reporting period, the Indonesia base achieved a 40% faster response to orders, annual carbon
dioxide emission reduction of 1,800 tonnes, and an increase in the localization rate of core components to 78%. The 2
uro V Emission Standard: This is the fifth-generation European standard for vehicle exhaust emissions, limiting maximum particulate emissions to 0.005
E
India base shortened the supply cycle for key components to 7 days and launched products suited to high-temperature g/km and nitrogen oxide (NOx) emissions to 0.2 g/km. Following the implementation of the "Euro V" standard, all new diesel vehicles are required to be
environments, reducing the failure rate by 60%. fitted with particulate filters.
< 24 25 >
SANY Heavy Industry Co., Ltd. Feature: Upholding the Leadership of Globalization, Digitalization, and
Engineering Machinery Equipment Manufacturing Industry
Intelligent Manufacturing Lighthouse Factory Leading Digitalization
The Company aims to deliver a new-generation lighthouse factory by deeply integrating the self-developed industrial software, building
a digital management system covering the entire production process, and creating a central intelligence hub for factories. In 2025, the
coverage rates of the intelligent manufacturing operations management platform (iMOM), intelligent warehouse management system
(iWMS), and intelligent advanced planning and scheduling system (iAPS) reached 71%, 93%, and 87%, respectively.
On this basis, Changsha No. 18 Factory introduced an industrial large-scale model to enable intelligent autonomous decision-
making in processes such as production scheduling, quality inspection, and equipment maintenance, and has scaled up the
application of systems such as welding robots and smart visual quality inspection, to continuously improve manufacturing
Pursue Digitalization Development and Achieve Transformation precision, efficiency, and quality.
SANY Heavy Industry regards digitalization as the core engine of high-quality development, comprehensively integrating
digitalization into the entire value chain of R&D, manufacturing, and operations, and, centered on the "Business Online" target, Case? ? Kunshan Factory Innovates with 5G Intelligent Manufacturing
systematically promoting the enterprise's transformation from "partial intelligence" to "overall intelligence." By building
a globally unified digitalization platform and deepening the integration of business scenarios, the Company has achieved In 2025, the Kunshan Excavator Factory achieved full 5G coverage across
systematic breakthroughs in three key areas: intelligent products, intelligent manufacturing, and intelligent operations. all 18 production processes from raw materials to finished products,
enabling real-time collection of over 5,000 data points and reducing data
latency to 20 milliseconds. Through a modular production line design,
Intelligent Products Driving the Intelligent Upgrading of Products the factory supports flexible mixed-line manufacturing of six major series
and 42 excavator models, significantly reducing product changeover
time from four hours to just 15 minutes. In quality inspection, a vision-
With intelligent construction machinery products at the core, the Company has built an intelligent product portfolio covering based inspection system has been deployed, achieving a defect detection
excavators, mixers, rollers, pavers, cranes, etc. Through the deep integration of key technologies such as 5G remote control and accuracy rate of 99.5% and driving the transition toward more intelligent Kunshan Excavator Factory
unmanned operation technology, the Company has launched a series of equipment featuring auxiliary systems, such as the and efficient quality control processes.
Mechlink intelligent excavation system, as well as remote control and autonomous driving functions. These are widely applied
in scenarios such as smart mines and construction projects, leading the industry toward an "unmanned intelligent era."
To continuously drive product innovation, the Company has enhanced employees' technology application capabilities
and digitalization literacy by organizing more than 200 special digitalization training sessions. Relying on its self-developed
intelligent agent platform, the Company has integrated core tools such as intelligent agents and intelligent workflows. In
Intelligent Operations Data Enhances Value Chain Efficiency
intelligent agent platform provided over 4.5 million times of service annually, realizing the transformation of technology tools
With "linking data globally" as the main thread, the Company has integrated data across overseas business systems to build
into the core productivity, continuously expanding the digitalization capabilities of its products, and providing customers with
an operations system that is transparent across all domains, real-time online, and intelligently collaborative. The Company's
more efficient and safer intelligent equipment solutions.
self-developed the Industrial Internet of Things (IIoT) platform adopts a "1+1+N" (IoT + NSLINK + applications) architecture
and continually enhances data collection, storage, computing, and application capabilities across scenarios. At present,
the platform covered 46 factories in 23 industrial parks, connected 18,000 pieces of equipment and 33,000 energy meters,
and built more than 30 integrated applications based on IoT data, including energy management, process optimization,
Case? ? SCC3200T Crane Sets a New Benchmark in the High-End Market and interconnected applications. In 2025, related applications cumulatively achieved cost reductions of RMB 72 million in
manufacturing processes.
To meet demand in the global high-end market for intelligent
and green lifting equipment, the company launched the The Company has continued promoting the extension of the Industrial Internet of Things overseas, completing the integration
SCC3200T, the first 300-tonne-class crawler crane compliant and value mining of databases across business units while simultaneously carrying out adaptive upgrades for overseas data
with the EU stage V emissions standard. This product integrates compliance. Through the "My SANY" intelligent operations platform, the Company provides customers with monitoring
advanced technologies such as digital twin-based planning and working conditions and warning services, significantly enhancing customer satisfaction and brand trust.
intelligent safety control, significantly improving operational
accuracy and safety. In international projects such as the
Fremantle bridge renovation project in Australia, two SCC3200T
crawler cranes demonstrated outstanding adaptability under Case? ? Intelligent Diagnosis by the Overseas Maintenance Assistant
complex working conditions, including narrow spaces and
waterside environments, by virtue of their stable design In response to the challenges of difficulty in diagnosing overseas equipment failures and limited expert resources,
without outriggers and powerful lifting performance. By the the company developed the intelligent "overseas maintenance assistant" based on the global service command
end of 2025, the SCC3200T crane has achieved sales revenue of center (GSC) project. Users can describe fault symptoms verbally to quickly obtain intelligent diagnostic
RMB 120 million, while derived models secured RMB 2.2 billion recommendations, troubleshooting steps, and relevant parts information. In 2025, the number of registered users
SCC3200T Crawler Cranes in the Fremantle Bridge
in orders before launch, marking a new breakthrough in the of this application exceeded 1,000, with cumulative usage surpassing 43,000 times, continually enhancing the
Renovation Project in Australia
global competitiveness of China's high-end equipment. efficiency of resolving overseas service issues.
< 26 27 >
SANY Heavy Industry Co., Ltd. Feature: Upholding the Leadership of Globalization, Digitalization, and
Engineering Machinery Equipment Manufacturing Industry
Decarbonization Across the Industrial Chain Building Green Ecosystems
At the industrial chain level, we are building a low-carbon ecosystem through "green supply chain management + environmentally
friendly manufacturing," establishing a full-process carbon reduction system covering R&D, manufacturing, and energy
management, helping customers reduce total cost of use, and supporting users in international markets such as the European
Union in meeting carbon regulatory requirements, thereby demonstrating the systemic value of new quality productive forces in
energy conservation and carbon reduction.
Pursuing Low-Carbon Development to Contribute "Green Strength" Establishing an ESG tiered ontinuously carrying out
C
to the Equipment Manufacturing Industry
management system for suppliers, Green environmental protection technology
Greening of
using energy use and carbon supply chain upgrades, systematically reducing water
+ manufactur?
emissions as key assessment manage? resource use and energy consumption,
SANY Heavy Industry is driven by new quality productive forces and is advancing on two fronts centered on product ing
indicators to drive green upgrading of ment and improving resource efficiency in
electrification upgrades and green industrial chain coordination, systematically building a decarbonization transformation
the industrial chain at the source. the manufacturing process.
pathway to become a globally leading pioneer in low-carbon development in the construction machinery sector.
At present, the Company has become one of the globally leading businesses in decarbonization in the construction machinery sector,
Product-Side Decarbonization Electrification and Energy Mix Optimization and in 2025, the Company's sales revenue from new energy products reached RMB 8.64 billion. Looking ahead, we will continue to
increase investment in clean technology R&D, upgrade production facilities, and expand into new markets, continuously improving
the low-carbon ecosystem across the industrial chain, providing customers with greener solutions that are more efficient and more
We actively seize opportunities arising from the green and low-carbon transformation, focus on product electrification, economical, and contributing "SANY strength" to advancing the green transformation of the global equipment manufacturing industry.
continuously push the boundaries of clean energy technology, and establish a comprehensive presence in sectors such as
pure electric, hybrid, and hydrogen energy. The Company is systematically promoting the electrification of the core equipment In 2025
across main machine products such as construction vehicles, excavators, loaders, and cranes, strengthening independent
The Company's sales revenue from new energy products reached
innovation in core components, and exploring the production and utilization of clean energy to deliver high-quality, low-
energy, and user-friendly products.
RMB
R&D Highlights in Low-Carbon Fields
Zero-emission technology
Electric
In 2025, the Company adopted a dual-motor, dual-transmission independent redundant design for its powertrain, balancing
and Hybrid
ANY Heavy Industry continues to advance electrification,
S In 2025 performance and efficiency and supporting breakthroughs in the new energy dump truck and concrete mixer market. At the
Technology
accelerating the electrification of main machine products, vehicle platform level, the Company advanced modular development to create a platform standardized land parcel, achieving
core components, and energy replenishment systems, Sales reached unified hardware and software interfaces. This reduced the failure rate by 30% and lowered production costs by 5%. In addition,
covering a wide range of products including excavators, refined design was implemented for low-voltage electrical wiring harnesses, reducing in-warranty failure rates by 80% and cutting
loaders, pump trucks, mixers, and cranes. In 2025, sales related quality losses by 84.5%, thereby strongly supporting brand enhancement for products such as dump trucks.
of the Company's major products, including electric
excavators, mixers, pump trucks, and cranes, ranked at the
Pollution control technology
forefront of the industry, with annual sales reaching 13,992 In 2025, the Company carried out a key technological upgrade to the automotive paint exhaust gas pretreatment system, replacing the original
units. three-stage bag filtration system with an innovative combined process of "cartridge filtration + bag filtration." This upgrade increased the
overall filtration efficiency to over 97%, with the first-stage cartridge filter offering a significantly higher paint-holding capacity compared to
previous materials. Following the upgrade, system operating resistance became more stable, electricity costs were reduced by approximately
one-third, and the service life of downstream filters was effectively extended, resulting in lower maintenance frequency. Overall, the upgrade
ensured stable compliance with stringent environmental standards while optimizing operating costs and maintenance efficiency.
Hybrid technology
In 2025, the Company launched a new-generation 39m intelligent hybrid pump truck. Through six major technological
Hydrogen breakthroughs, it established the industry’s first intelligent hybrid technology platform (the Xuanding System), reducing
Energy energy consumption costs by 54% and redefining industry benchmarks through technological innovation. The product
ANY Heavy Industry has been actively engaged in the hydrogen industry, treating it as a
S
Technology delivers a 66% increase in driving range and a 53% improvement in pumping capacity, significantly enhancing operational
key field within its decarbonization strategy, with a focus on R&D for hydrogen-powered
vehicles, adjusting the energy mix and service model of its products, continuously launching capability and efficiency. In terms of reliability, it has undergone 2,000 hours of uninterrupted extreme testing on a three-
technological achievements with independent intellectual property rights, and supporting electric pumping test bench, along with dual validation through professional whole-vehicle thermal management chambers
the development of the full industry chain for hydrogen energy. and authoritative EMC testing. From a design perspective, the vehicle achieves industry-leading performance in overall length,
minimum unfolding height, and turning radius, improving adaptability in confined working conditions. In addition, the product
qualifies for green license plates, allowing operation during smog alerts without administrative restrictions, offering a unique
road access advantage in the industry and comprehensively optimizing the operating experience.
< 28 29 >
Building on
Compliance for First-
Class Governance
SANY Heavy Industry upholds integrity across all business
activities as the foundation of the Company, adheres
to business ethics and compliance requirements,
continuously improves a first-class governance system
centered on risk control and enhanced internal controls,
promotes the deep integration of compliance requirements
into operations practices, and provides solid safeguards for
sustainable and high-quality development.
Corporate Governance
Risk Control
Business Ethics
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Corporate Governance Risk Control
SANY Heavy Industry regards sound corporate governance as a core underpinning for the enterprise's long-term stable operations and SANY Heavy Industry continues to build and improve a comprehensive and highly efficient risk management and internal control system
sustainable development. The Company strictly complies with the Company Law of the People's Republic of China , the Securities Law to safeguard the implementation of the Company's strategy and its high-quality development. The Company revised and improved 15
of the People's Republic of China , the Code of Corporate Governance for Listed Companies, the Rules Governing the Listing of Stocks on management protocols or guidelines, including the Operational Guidelines for Risk Assessment , the Operational Guidelines for Internal
Shanghai Stock Exchange , the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited , and other laws, Control assessment , the Administrative Measures for Rectification Acceptance , and the Audit and Supervision Management System,
regulations, and regulatory requirements; continues to optimize its governance structure; and safeguards the effective performance continuously enhancing capabilities in risk prevention and management and ensuring safe and stable operations.
of the functions of the general meeting of shareholders and the Board. The Company carries out information disclosure in accordance
Risk Management
with laws and regulations to ensure transparency and compliance of disclosed information, and is committed to building a modern
governance system that is scientific and standardized, efficient in operation, and clear in powers and responsibilities.
Under the Board, the Company has established the strategy committee, the audit committee, the nomination committee, and the remuneration
and assessment committee to support professional decision-making and supervision. The Board emphasizes member independence and The Company has established a comprehensive risk management structure composed of the "four lines of defense," under which
diversity, taking into comprehensive consideration factors such as industry experience, educational background, professional competence, and business divisions, functional headquarters, the audit and supervision headquarters, and the audit committee perform their
gender to enhance the quality of decisions and breadth of perspectives. Board members possess extensive experience in legal affairs, finance, responsibilities at different levels and coordinate risk prevention and control, fully integrating risk management into corporate
auditing, and corporate management, providing professional guidance for the Company's strategic planning and operational decisions. In 2025, governance and operational processes. In 2025, the Company established the Risk and Compliance Management Task Force, led
the Company's Board comprised 9 directors, including 3 independent directors and 1 female director. by a director, to formulate risk targets and policies, approve response strategies for major risks, promote the implementation of
responsibilities and system optimization, and enhance the effectiveness of managing overall operational risks.
Corporate Governance Structure
Risk Management Structure
General Meetings of Shareholders
Audit and Supervision
The Board Business Divisions Functional Departments Audit Committee
Headquarters
Operational management Identify business risks Internal control and audit Provide system guidance and
Internal controls Implement risk control oversight
Nomination Remuneration and Sustainability measures Evaluate the effectiveness of
Strategy Committee Audit Committee
Committee assessment Committee Committee internal controls
Corporate Management Levels and Main Functions
Accountable to the general meeting of shareholders, and responsible for examining major matters
The Board in the Company's business activities, submitting the decisions, or submitting them to the general
meeting of shareholders for examination.
Senior executives are guided by the Board and take charge of the Company's daily
Senior Executives
operations and management.
The Company has deepened system building for its digitalization-based risk control system and developed a three-dimensional digital audit and
supervision platform centered on "data support, intelligent early warning, and AI empowerment." This platform can identify risks across multiple
processes, including marketing, commerce, and finance, and conduct dynamic oversight of related parties such as suppliers and employees,
The Company strictly follows laws and regulations, the Articles of Association , and the working rules for each specialized committee; thereby enabling more intelligent and refined risk control.
standardizes the convening of the general meeting of shareholders, the board meeting, and the meeting of the board of supervisors;
To strengthen the company-wide risk management culture, the Company established a normalized control mechanism implemented through
ensures that the procedures for convening, holding, and voting at the "three meetings" are lawful and compliant; and effectively
monthly regular meetings and ad hoc special training. During the reporting period, a total of 33 risk control training sessions were conducted,
safeguards the legitimate rights and interests of the Company and all shareholders, especially minority shareholders.
covering 2,046 participants, which continuously enhanced employees' risk awareness and risk response capabilities.
In 2025, SANY Heavy Industry held During the reporting period
Annual general meeting of shareholders Extraordinary general meetings Board meetings Attendance rate Risk control training sessions conducted Covering
< 32 33 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Internal Control and Compliance Business Ethics
The Company continues to improve its internal audit system, continuing to optimize the global auditing and supervision system,
SANY Heavy Industry is honoring its philosophy of compliance operations, continuously improving its anti-corruption and integrity
strengthening coordination between supervision and audit departments, and systematically advancing internal control management
framework, strengthening business ethics management, further promoting anti-money laundering efforts, and actively fostering
toward a more systematic, compliant, and digitalization-driven model.
a culture of integrity. The Company firmly opposes corruption, bribery, and fraud, as well as all unfair competition, and requires
the same standards of its business partners, working together to foster a clean and upright business environment and build a
Audit and Supervision Headquarters System
sustainable development business ecosystem.
Integrity Management
Supervision
Department Construction Vehicle
Business Unit
Cooperation Leads and SANY Heavy Industry strictly complies with the Criminal Law of the People's Republic of China , the Anti-Unfair Competition Law of the
Cooperation
Global Audit and Supervision
and Interaction Needs People's Republic of China , the Interim Provisions on Prohibiting Commercial Bribery , and other applicable laws and regulations. In 2025,
and
Heawy Machinery the Company formulated and optimized internal policies such as the Code of Ethics and Business Conduct for Employees , the Conflict of
Interaction
Audit Business Unit Interest and Integrity Management System , the Accountability Management Policy and Red Line List, the Blacklist Sharing Management
Headquarters
Department Procedure , and the Business Personnel Behavior Management Regulations . By establishing consultation and whistleblowing mechanisms,
it systematically standardizes employee conduct, identifies potential risks, and prevents non-compliant behaviors.
Cooperation Leads and
The Company has established an anti-corruption supervision system with clearly defined responsibilities. The Board directly leads,
and Interaction Needs Heavy-Duty Crane
guides, and evaluates integrity management. As the dedicated oversight body, the audit committee regularly reports to the Chairman
Business Unit on the progress of audit and supervision work and the investigation and handling of cases involving embezzlement and commercial
bribery. The Audit and Supervision Headquarters issues the Monthly Audit and Supervision Briefing on a monthly basis to support
Supervision Group 1
decision-making by management employees and safeguard the efficient promoting of integrity management.
Supervision Group 2
…………
………… In 2025
the Company organized all directors, employees in Signing the Letter with A signing rate of
The Company has established an internal control framework centered on the "1+8+N" system framework, systematically revised pivotal roles, commercial staff, and mid-level managers
for Internal Control assessment , and achieved end-to-end coverage of key processes such as risk assessments, plan management, Anti-Corruption Commitment Letter
and quality control. Centered on "prevention, inspection, and assessment," we have established three lines of defense consisting
of business divisions, the internal control team, and audit and supervision, and applied three major tools—compliance testing,
special inspections, and annual assessment—to build a four-dimensional assessment system covering whether processes have been Integrity Management Structure and Responsibilities
established, whether personnel have mastered them, whether processes are strictly executed, and whether processes are continuing
to optimize, thereby continually enhancing systematic management improvement.
Management Structure Functions
The Company has established routine monitoring and audit mechanisms. In 2025, it completed internal control assessment testing As the first person responsible for conflict of interest management and personal integrity within the unit,
covering the commerce, finance, and marketing systems, while also promoting the establishment of internal control and compliance Primary responsibility
this role is required to promptly disclose any conflict of interest in accordance with relevant provisions.
departments within overseas business management, finance, and the business headquarters to perform day-to-day supervision
Responsible for organizing the communication and disclosure of conflict of interest and integrity-related
functions. Risk management performance is incorporated into the performance assessment system, and accountability for violations is Audit and Supervision
systems, and for acceptance and handling of consultations, whistleblowing reports, investigations, and
enforced in accordance with the Accountability Management Policy. Headquarters
other matters related to non-compliant behaviors.
In addition, the Company carried out a series of training sessions focused on core areas such as internal control, compliance, and strategic May authorize designated personnel to be responsible for the acceptance and handling of the execution of
procurement, strengthening employees' compliance awareness and risk management capabilities, consolidating the foundation for compliant accountability for conflict of interest and integrity-related matters within their unit, and for receiving gifts or
Unit heads
operations, and continually enhancing employees' capabilities in internal control execution, compliance awareness, and risk management. monetary items returned by employees, carrying out registration and filing in accordance with regulations,
and subsequent handling.
Business Headquarters and the Responsible for the communication, organization, and inspection of supplier conflict of interest
commercial departments of declarations, ensuring the effective implementation of relevant results, and accepting supervision and
business units inspection by the Audit and Supervision Headquarters.
Responsible for supervising the conflict of interest management of the Audit and Supervision Headquarters
Chairman's Office
and coordinating the receipt and management of gifts or monetary items.
Responsible for assisting the Audit and Supervision Headquarters and the Board Office in carrying out
Human Resources Headquarters /
work related to conflict of interest disclosure, and participating in the organization and implementation of
HR departments of business units
policy publicity and communication activities.
< 34 35 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Integrated Anti-Fraud System of Punishment, Governance and Prevention
The Company continues building anti-fraud systems and promoting work centered on the integrated approach of "punishment,
governance, and prevention," fully implementing integrity management and risk control to achieve full-chain management from Integrity Management Measures
education and process supervision to strict accountability.
In 2025
End-To-End Anti-Corruption Audit Mechanism Whistleblowing reports and With a resolution Anti-corruption audits achieved full coverage of
complaints handled rate of core business processes, with a coverage rate of
With "data penetration" as its core principle, the company leverages its intelligent audit and supervision platform to establish a
normalized anti-corruption audit mechanism spanning the full lifecycle of "pre-event, in-event, and post-event" stages, driving
the transformation of audit practices from traditional experience-driven approaches to data intelligence-driven models. Audit and
supervision operations have been fully migrated online, with intelligent tools such as audit subject profiling and indicator-based early
warning models, combined with preventive education, real-time monitoring, and investigative enforcement, systematically ensuring
A data-driven approach, audit findings Creating economic value of
comprehensive audit coverage.
identified throughout the year reached
Management Measures System 2,208 RMB 146million
Anti-Corruption Management Mechanism
Pre-event Publicity and
Prevention
During-event Monitoring and
Governance
Post-event Accountability and
Punishment
Integrity Management for Stakeholders
The Company adheres to pre- The Company has established multidimensional Through mechanisms such as
The Company attaches great importance to business ethics risks involving partners and related parties in the global supply chain, and
incident prevention and strengthens supervision mechanisms, including digital model investigating major cases, circulating
the ideological defense line of all supervision, a reporting and complaint mechanism, case notifications, sharing a has formulated and updated the Supplier Management System , the Procurement Framework Agreement , the Supplier Contact and
employees through initiatives such a senior management supervision and assessment blacklist, tracking former employees, Visit Management Rules , and other management protocols to ensure that all stages of the supply chain comply with local regulations
as tiered and categorized integrity mechanism, a business compliance check, business and ensuring that every report is and standards in places where it operates and to regulate the conduct of suppliers.
education, compliance exams, management decision-making supervision, supplier investigated, the Company strengthens
reminders before holidays, the signing management, a gift and cash declaration mechanism, the deterrent effect of accountability. Through initiatives such as organizing supplier integrity training, signing integrity cooperation commitment letters, and issuing holiday
of commitment letters, and on-site and conflict of interest disclosure mechanisms, in integrity initiatives, the Company continuously communicates integrity requirements to partners. In 2025, the Company launched the
warning education sessions. order to strengthen risk management capabilities business ethics certification module in the CRM and GSP systems, requiring suppliers to obtain a 2-year certification before signing
during amid-incident monitoring. contracts, thereby achieving systematic coverage of integrity management. At the same time, it carried out integrity communications
for internal procurement personnel, prohibiting the acceptance of entertainment or gifts, and strictly enforcing the handling and
notification of violations.
Audit Tool Intelligence
The Company has continued to promote the transformation of its intelligent audit and supervision system by building an integrated
In 2025
data analysis and monitoring platform, thereby advancing its audit model from experience-driven to data-driven. The Company has
systematically established a multidimensional risk warnings and supervision framework covering "points, lines, planes, and entities,"
The signing rate of supplier integrity cooperation agreements and commitment letters reached
achieving end-to-end closed-loop management from risk identifications and dynamic monitoring to assessment and decision-making,
and strengthening the preventive and control capabilities of its audit and review efforts.
Penetrative Audit Execution
The intelligent audit and supervision platform continuously builds and dynamically monitors profiles of over 600,000 suppliers, agents,
customers, and employees, significantly enhancing audit penetration. In 2025, the platform automatically generated and closed out 63
high-risk action items, achieving 100% coverage of anti-corruption and business ethics audits. This has progressively strengthened the
governance cycle of "monitoring — early warning — disposal— education," driving audit oversight to penetrate with greater depth and
precision.
< 36 37 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Supplier Integrity Management System Whistleblowing Process
Report Intake, Registration &
Triage & Classification Feedback Acceptance
Set access requirements of dishonest operations for suppliers. Assignment
Supplier Management System
Recommendation for
Conclusion Review & Feedback Conclusion Review & Feedback
Whistleblower Incentives
Require all suppliers and distributors to sign integrity cooperation agreements.
Procurement Framework Agreement Complete the Conflict of Interest and External Investment Declaration Form in the
Integrity Culture Development
procurement system.
Establish reporting channels via telephone and WeChat, as well as a callback
mechanism, to enable real-time response to issue feedback. The Company deeply embeds integrity management throughout its operations, promotes a culture of integrity through diversified
Administrative Measures for Provide immediate notification of non-compliant behaviors and strengthen channels, and continuously enhances all employees' awareness of anti-corruption. We regularly conduct code of conduct training
Supplier Contact / Visits covering all formal employees, and carry out dedicated conflict of interest disclosure for board members and key position holders,
communication of integrity policies.
Verify and investigate matters involving suspected breaches of contract by suppliers. clearly defining "comprehensive risk coverage, proactive disclosure, conflict recusal, and zero tolerance" as the core principles
to ensure timely and comprehensive disclosure. In addition, at key times such as holidays, we continue to strengthen warning
communications through multiple channels, including pushing warning messages and publishing articles on the official account,
and regularly publish typical fraud investigation cases to reinforce employees' behavioral boundaries through normalized warning
education sessions. In 2025, the coverage rate of business ethics training for formal employees reached 100%.
Petition and Whistleblowing Management
SANY Heavy Industry strictly complies with relevant national disciplinary inspection and supervision regulations, and has formulated Case? ? Jointly Conducting Business Ethics Seminar with the Judicial System
and implemented internal management protocols such as the Whistleblowing and Complaint Management System and the
Whistleblowing Management Process to systematically manage the acceptance and handling process for whistleblowing reports.
Whistleblowers may report issues through multiple channels, and the Company promptly organizes and archives whistleblowing In 2025, SANY Heavy Industry, together with national judicial administrative authorities, organized special lectures on
information, establishes ledgers for issue clues, and conducts regular analysis and assessment to ensure that each report is handled in explaining the law through cases in Shenyang, Huzhou, Shanghai, Xi'an, and Changsha. Through analysis of typical cases
a timely and impartial manner. and explanations of judicial practice, the company enhanced employees' awareness of anti-fraud and legal literacy,
fostering a regulated and orderly corporate environment.
SANY Heavy Industry Whistleblowing Channels
Email: jiancha@sany.com.cn QQ: 2592689550
Official website: integrity reporting_about SANY_SANY Group, Reception room: Room 306, Complex Building of Changsha
Quality Changes the World Industrial Park/audit & supervision office
WeChat: Integrity SANY Official Account, the chairman's Mail: Audit and supervision headquarters, SANY Industrial
mailbox Park, Xingsha Economic & Technological Development District,
Changsha, Hunan Province, China 410100
Telephone: 0731-84031222, 85835000
Feishu: Workbench/Integrity SANY
The Company strictly implements the Whistleblowing and Complaint Management System , maintains full-process confidentiality
of whistleblowers' information and report contents, and fully enforces the principle of recusal in information processing and
investigation procedures to prevent conflicts of interest from interfering with procedural fairness. For acts such as illegally obtaining
or disseminating information, or discriminating against, threatening, or retaliating against whistleblowers, the Company will seriously
pursue accountability in accordance with the system and establish a one-to-one special protection mechanism. When necessary, it will
work with judicial authorities to pursue legal responsibility, so as to effectively safeguard the rights and interests of whistleblowers and Training Site
uphold the credibility and security of whistleblowing channels.
< 38 39 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Anti-Unfair Competition Anti-Money Laundering
To foster a fair and orderly market environment, the Company has formulated dedicated internal management regulations and The Company attaches great importance to anti-money laundering efforts and strictly complies with the Anti-Money Laundering Law of
strictly implements the principle of "no boasting, no smearing," prohibiting all forms of unfair competition. At the same time, it has the People's Republic of China and other relevant national regulations. In 2025, it formulated and refined a series of policies, including
established a whole-process management mechanism covering training, inspections, assessment, and disposal to strengthen internal the Anti-Money Laundering Internal Control System and the Anti-Money Laundering assessment Measures .
controls. All employees are required to uphold the principles of honesty and good faith in business activities, and shall not engage
in exaggerated publicity, defame others, or spread false information. They are expected to consciously resist unfair competition and The Company has established a sound functional framework for its anti-money laundering system. Powered by advanced technologies,
safeguard a healthy and civilized industry ecosystem. In 2025, the Company was not involved in any litigation or subject to any major it provides end-to-end coverage of key business scenarios such as customer identification, money laundering risk rating, suspicious
administrative penalties arising from unfair competition. transaction monitoring and reporting, dynamic blacklist updates and maintenance, and institutional money laundering risk self-
assessment, effectively addressing the challenges of anti-money laundering efforts.
Anti-Unfair Competition Management Measures
Anti-Money Laundering Internal Control System
Financial Management
Compliance Management
The Company has designated the Legal & Compliance Department to take the lead in anti-money laundering efforts and
Employment contracts explicitly stipulate employee obligations regarding anti-unfair competition;
requires each department to appoint one anti-money laundering commissioner to collaboratively promote the implementation
Conflict of interest disclosure requires employees to disclose their non-compete status and confidentiality
of relevant management tasks.
agreement status, so as to avoid related disputes.
The Company continues to improve anti-money laundering-related processes and systems, clearly defining anti-money
laundering obligations and the functions of each department, standardizing the suspicious transaction reporting mechanism,
optimizing the money laundering risk assessment process, and ensuring the orderly advancement of anti-money laundering
Training Management efforts.
The Company has put an anti-money laundering information system into operation, which automatically identifies and assesses
Anti-unfair competition training is provided to new employees, and the Company organizes an exam; only those
customer money laundering risks based on information such as watchlists, customer identity, financial product type, and
who pass may proceed before onboarding; transaction amount, and transmits the results to business systems through system integration.
At least one company-wide anti-unfair competition training session is held annually for all employees.
Issue Early Warning
Financial Monitoring
Market research is conducted on an ad hoc basis to collect various issues and non-compliant behaviors reported
by customers and industry peers; For large-amount transfers, the Company systematically reviews the source of funds and the destination of funds to ensure
The Company organizes marketing teams and agents to conduct self-inspections at least once every six months, that the entire transaction process complies with legal and regulatory requirements, and adopts effective measures to
and to promptly report and address any identified issues and implement corrective actions for issues identified prevent and eliminate the occurrence of various illegal financial activities.
during self-inspections. The system integrates the Customer Relationship Management (CRM) system and the GSP platform to strengthen the credit
management of customers and suppliers, and strictly controls cooperation access and transaction processes to enhance risk
management.
Violation Assessment
The Company has established a normalized assessment mechanism for employee conduct, closely linking anti- To continuously improve its anti-money laundering management standards, the Company has strengthened internal audit oversight,
unfair competition violations to monthly performance assessments. conducted annual anti-money laundering audits, promoted compliance-oriented revisions to policies, enabled the linkage between
risk ratings and business systems, and optimized the updating and screening processes for watchlists, using audits to drive rectification
and improve the management system. Meanwhile, the Company irregularly invites external experts to conduct anti-money laundering
communication and training sessions to enhance employees' compliance awareness. For high-risk positions such as directors,
supervisors, and senior management, the Company organizes special training on a quarterly basis to strengthen their role-based
compliance capabilities in anti-money laundering.
< 40 41 >
Driving Technological
Innovation to Deliver
First-Class Products
SANY Heavy Industry regards technological innovation
as the core engine driving development and, by closely
focusing on the strategies of globalization, digitalization,
and decarbonization, uses innovation to lead products
and industrial upgrading. The Company strengthens its
global R&D system and establishes systematic research
management, talent incentive, and intellectual property
rights protection mechanisms to provide a solid safeguard
for technological innovation. At the same time, we have built
a quality and service system covering the full life cycle of
products and the entire customer processes, integrated the
philosophy of sustainability throughout the supply chain and
operations, and are committed to providing customers with
safe, reliable, intelligent first-class products and services.
Innovation-Driven Development
Superior Quality
Sustainable Supply Chain
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Innovation-Driven Development
Highlights
The Company aligns with the direction of three core strategies, deeply integrates green technology and digital intelligence, and
fosters an open and collaborative innovation ecosystem. By continuously strengthening the global R&D system, building talent In 2025
teams, and intellectual property management, we continue promoting technological breakthroughs and product innovation to
meet the demand in the global market with more competitive green and intelligent solutions.
R&D investment Accounting for the Company's Number of R&D Accounting for the Company's
Research Management
reached main business revenue personnel total employees
RMB 5.169billion 5.79% 5,720 20.09%
The Company has formulated and continuously improved the R&D Project Input-Output Management Measures and the R&D Planning
and Management Guidelines to manage R&D activities in a normalized way. The Company has established a clear three-tier R&D
management organizational structure comprising the R&D Technical Committee, the seven technical committees, and the specialized Furthermore, the Company has formulated and implemented the Project Manager System for R&D Projects , encouraging R&D personnel
technical subcommittees, with clearly defined functions and division of responsibilities, and safeguards the quality of R&D projects to participate in training and certification programs for project management, enhancing the professionalism of project management, and
and the implementation of strategy through efficient coordination and oversight mechanisms. improving the professional competence and comprehensive capabilities of the R&D team across multiple dimensions through training for
directors of research institutes, R&D project manager training, and various special-topic training programs on professional knowledge.
Research Collaboration and Exchange
R&D Management Organizational Structure
The Company actively builds an open and collaborative R&D ecosystem and continuously expands its technological horizons and pools
Led by the Chairman, it is responsible for formulating the Company's R&D strategy and
innovation resources through external cooperation. The Company has established strategic cooperation relationships with well-known
R&D Technical technology development roadmap to ensure alignment with the Company's overall strategy;
domestic universities and research institutes such as Dalian University of Technology to jointly conduct research on frontier technologies.
Committee Coordinated the specialized technical subcommittees and makes decisions on major
technical proposals. In 2025
Composed of technical experts from seven core fields, including mechanical, control, The Company participated in and organized Reached new cooperation
Seven Technical important technical exchanges intentions with
hydraulic, and testing, they are organized by professional field and are responsible for
Committees
guiding and examining major technical directions in their respective fields.
external institutions
Established specialized technical subcommittees under each technical committee, they are
Specialized
responsible for researching and resolving specific professional technical issues; Case? ? In-House Development and Case? ? Technical Exchange
Technical
Responsible for formulating the technology development roadmap, technical standards and Upgrade of a 3D Engine for with Dalian University
Subcommittees
operational procedures for their respective specialties; Lifting Planning of Technology
Responsible for advancing the implementation of new products and technologies and
organizing technical exchanges to promote knowledge sharing and collaboration.
To enhance the safety, precision, and efficiency of lifting In August 2025, a company technical
operations, SANY Heavy Industry independently developed a 3D delegation visited Dalian University of
lifting planning engine based on the Unity platform, achieving Technology, where both parties engaged
comprehensive breakthroughs in model coverage, functional in in-depth technical exchanges covering
integration, and system performance. The engine added support emerging technologies, processes, materials,
To fully stimulate innovation vitality, the Company has formulated the Implementation Rules for the Incentive Policy on R&D Projects for 24 wheeled and crawler crane models, strengthened 8 core and equipment. The visit resulted in over
and established a functional evaluation and incentive system centered on positions and capabilities. The Company has set up project capabilities including multi-user collaboration, CAD interaction, ten cooperation intentions, with a shared
process awards, standout project awards, and project incremental profit awards covering the entire project life cycle, with rewards and virtual reality, and iteratively optimized 7 existing features. commitment to building a full-chain
granted based on project classification and innovation outcomes, among other factors. It has also established special upward The upgraded system reduces interaction latency, achieves a collaborative ecosystem spanning from
adjustment incentive mechanisms for electrification, digitalization, and market hits. 100% accuracy rate in working condition logic verification, and core technology breakthroughs to product
supports multi-format engineering file imports and 4K-level competitiveness enhancement.
visualization rendering. These advancements not only improve
internal design efficiency but also lay a technical foundation for
delivering digital lifting solutions to customers.
< 44 45 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Intellectual Property Rights
Superior Quality
SANY Heavy Industry regards intellectual property as an important component of technological development, strictly complies with national
laws and regulations such as the Patent Law of the People's Republic of China , the Trademark Law of the People's Republic of China , and
SANY Heavy Industry regards quality and safety as the foundation of development and is committed to providing customers with
the Enterprise Intellectual Property Management Standards, and has established internal systems such as the R&D Patent Management
reliable products. Through digital tools and systematic processes, the Company upgrades product quality, strengthens supply
Measures , the Trademark Management System, the IT Software Copyright Management Policy , and the Technical Secrets Management
chain and process control, optimizes the service experience, and builds a data protection network, comprehensively pursuing
Policy . The Company has established an intellectual property special group responsible for the establishment of rights, protection, and
superior quality with unwavering commitment.
application of intellectual property, thereby effectively safeguarding innovation achievements and preventing infringement risks.
In 2025, the Company continued promoting whole-process management of intellectual property rights and implemented improvement
Quality Management
measures in multiple areas, including review mechanisms, brand and trademark protection, industry seminars, and employee training.
Annual Highlight Measures for Intellectual Property Protection
The Company strictly complies with the Product Quality Law of the People's Republic of China and other national laws and regulations
Review and Early-Warning Mechanisms
as well as relevant corporate standards, has formulated internal systems such as the Technical Notification Management System , and
Each research institute is staffed with patent engineers who proactively conduct patent screening before new products are has established a digital quality management system covering the entire process of R&D, manufacturing, supply chain, and after-sales.
launched and before participating in overseas exhibitions, to avoid potential infringement risks.
Brand and Trademark Protection By the end of the reporting period
The Company conducts routine monitoring of core trademarks such as "SANY" and regularly files objections against similar
trademarks to maintain the uniqueness and distinctiveness of well-known trademarks. The number of subsidiaries of SANY Heavy Industry certified With a coverage
In response to market behaviors such as passing off on established brands and disparaging commercial reputation, the by ISO 9001 quality management system had reached rate of
Company actively safeguards its rights through civil infringement litigation.
For serious infringements such as the production and sales of counterfeit and substandard parts, the Company resolutely
adopts criminal enforcement measures to create an effective deterrent.
Industry Exchanges and Seminars Employee Training and Development
Quality Management System of SANY Heavy Industry
The Company participated in seminars on revisions to the Trademark Law The Company organized compliance training
organized by the China National Intellectual Property Administration and on software management and use, as well
Quality Management System
special seminars organized by the Administration for Market Regulation as specialized training on the protection of
of Hunan Province, discussing the issues including trade secret protection intellectual property rights for parts, in order to
and cross-provincial coordinated law enforcement. enhance employees' compliance awareness
The Company participated in the working meeting of the State Administration and risk prevention capabilities in relation to
Quality Resources Manufacturing After-sales
for Market Regulation on combating counterfeiting and infringement and intellectual property. Quality Objectives R&D quality Supplier Quality
and Performance Quality Quality
Management Management Management
further deepened trademark protection efforts. Management Management Management
Highlights
Quality Methods Quality After-sales Supplier Quality
Planning Objectives Quality Issues in R&D
Management Measurement and Quality Problems Management Before
In 2025 Inspection Plan Management Mass Production
Quality Accreditation
Review Management
Number of domestic Number of granted Number of international Authorizations Implementation Management and Production Supplier Quality
patent applications filed patents patent applications filed overseas Management Implementation Process Quality Management During
Management Mass Production
Quality Cost R&D Implementation
Management Quality Management Finished Product Supplier Quality
Quality Management and Performance
Quality Examination
Computer software Number of patents applied to the Company's Management
Management
Quality Anomaly
copyrights obtained core business operations
Management
Quality
Improvement
< 46 47 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
SANY Heavy Industry Quality Management Content
Customer Service and Privacy Protection
R&D Quality Manufacturing Quality
SANY Heavy Industry complies with the Law of the People's Republic of China on the Protection of the Rights and Interests of
Consumers , the Advertising Law of the People's Republic of China , and other relevant laws and regulations, and has formulated
For the product R&D process, controls are applied to the Quality control in the manufacturing process includes
internal systems such as the Marketing Contract Management Policy and the Customer Complaint Handling Process to standardize all
output of key product characteristics, special characteris? management activities such as disqualification business processes and complaint handling standards.
tics, QC control charts, and testing benchmarks, while improvement, regular inspection, patrol inspection,
monitoring initial item inspection and trial production and self-made pieces of primitive objects. In 2025, the Company upgraded its key account management, risk control, and service system, and improved service efficiency and
testing, and managing the avoidance of design risk zones, intelligent capabilities through digitalization transformation across the entire process. Furthermore, the Company continued to
quality gate reviews, and closed-loop management of strengthen team capabilities and deepen customer relationships through training and multi-channel customer communication. During
problem points. the reporting period, the Company's customer satisfaction surveys score was 93.0 points. A total of 1,052 customer complaints were
received, of which 1,035 were processed, and the complaint handling satisfaction rate was 84.1%.
Supplier Quality After-Sales Quality
The Company has established a data compliance management structure guided by the board of directors and formulated internal
systems such as the Data Security Management Policy, clarifying management requirements for domestic and overseas data across
For supplier management and their material manage? For fault messages reported by users, quality problem all stages. In 2025, the Company signed cross-border data agreements with 21 overseas subsidiaries and conducted 100% compliance
ment for suppliers, this includes aspects such as quality analysis is conducted, including liability judgment, checks during the project initiation and launch stages of IT systems.
agreements, initial procurement components, incoming supplier claims, internal component quality problem
material inspection, supplier monitoring, and initial mass management, and closed-loop tracking for quality
production flow. improvement. Data Compliance Management Structure
In 2025, the Company's digital quality information system covered all 113 domestic factories. Through tools such as quality boards at As the highest decision-making body, the board of directors fulfill decision-making and supervisory
workstations and the quality control map, it comprehensively identified quality issues and ensured accountability was implemented, Board of
responsibilities, and are responsible for approving systems and supervising the execution of strategic
forming closed-loop management. In accordance with the Accountability Management System for Major Quality Defects , the Company Directors
projects.
established an emergency response mechanism to ensure that, after an incident occurs, relevant departments can initiate a response
within 24 hours and complete corrective actions. In 2025, the Company had no major product safety incidents or product recall events.
As the management level, the Data compliance subcommittee was established under the leadership of the
In 2025 Data
compliance Process Digitalization Headquarters and Huaxia Fangyuan Law Firm, jointly with functional departments.
subcommi- Coordinate data compliance work as a whole, formulate data compliance systems and procedures, and
no
The Company had ttee supervise and inspect the compliance situation of execution.
major product safety incidents or product recall events
Data
compliance As the execution level, it translates the Subcommittee's decisions into specific actions, and coordinates,
execution advances, and tracks the compliance work of each execution department.
Quality Control Map team
Quality Boards at Quality Control Quality Boards at On the data protection front, the Company completed disaster recovery for 26 application systems and data backup for 804 applications,
Need-to-Know
Workstations Map Production Lines while enabling secure intranet data access through desktop cloud and data sandbox technologies. In terms of customer privacy protection,
the Company formulated the Customer Privacy Policy , signed the Information Security and Confidentiality Agreement with partners and
Main Content Main Content Main Content Main Content conducted regular reviews, and incorporated privacy protection into compliance training for all employees.
Work Procedures
Critical risks at Knowledge Ouality Trend at
Key qualitycontrol quality control learning and skills production lines
points at workstations points training Production
Historical failures at
Ouality Risks at Exams line personnel In 2025
workstations workstations Data Statistics information
Safety hazard points
Risks Associated The Company obtained Number of core systems completed Number of data security
Quality Trend at with Need-to-Know cybersecurity graded protection incidents or customer privacy
knowledge and ISO 27001 certification for assessment certification leakage incidents occurred
workstations
skills
its information security
management system
< 48 49 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Sustainable Supply Chain
Statistics on the Number of Suppliers in 20253
SANY Heavy Industry is committed to building a stable, efficient, and sustainable supply chain system. We continue to refine
management protocols covering full lifecycle of supplier management. Through rigorous admission assessment and dynamic tiered Indicators Data
management, and by leveraging digitalization systems to strengthen risk control, we safeguard the resilience and competitiveness of
the supply chain. Meanwhile, we comprehensively integrate ESG requirements into supplier management and work with partners to Total number of suppliers 5,875
advance sustainable development, building a responsible, resilient, and collaboratively innovative global supply chain ecosystem.
Chinese Mainland 5,838
Supply Chain Management Number of suppliers by region Hong Kong, Macao, and Taiwan of China 4
Overseas 33
The Company strictly complies with the Bidding Law of the People's Republic of China and other laws and regulations, continuously
revises the Supplier Management System and other internal systems, improves the processes for supplier admission, assessment, and Number of production suppliers (procurement of raw and auxiliary materials) 2,679
Number of suppliers by procurement
supplier exit, and has introduced new requirements such as time-bound management for exiting suppliers, thereby systematically
category
optimizing full lifecycle management of suppliers. Number of non-production suppliers (project procurement) 3,196
Supplier Full Lifecycle Management of SANY Heavy Industry Number of suppliers of general products 1,280
Production suppliers by category4
Number of suppliers of specialized products 1,979
Admiss?ion Assess?ment Exit
Number of suppliers certified to management systems 1,597
—Number of production suppliers certified to ISO 14001 Environmental Management System 1,438
Verify suppliers' basic information
Implement tiered management The Company adopts a zero- —Number of production suppliers certified to ISO 9001 Quality Management System 1,591
such as business licenses and, and classify suppliers as strategic, tolerance policy toward legal
upon approval, include them in preferred, alternative, actively disputes, non-compliant
the registered supplier database; exiting, or passively exiting based qualifications, dishonesty, and
on rating results; similar issues, and takes measures Supplier Risk Identification
Based on business
to terminate relationships with
management information,
Conduct performance evaluation non-compliant suppliers; To safeguard the resilience and sustainable development of the supply chain, SANY Heavy Industry has established a mechanism for
quality management, R&D, and across dimensions such as supplier risk identification and management and prepared the Supplier External Risk Control Plan to achieve closed-loop management
processes in the Supplier Detailed quality, delivery, costs, service, For suppliers to be eliminated,
throughout the full process of risk classification, identification, disposal, and investigation. In 2025, the Company completed a
Information Registration Form , and carbon emissions, and those that failed to complete comprehensive risk review of existing suppliers and, based on the evaluation results, eliminated 58 high-risk suppliers, thereby
generate admission profiles and, launch ad hoc inspections for corrective actions and meet reducing compliance and operations risks at the source.
upon approval, place them in the exceptional circumstances; standards within 6 months, and
potential supplier database; suppliers with unqualified quality,
2025, the Company conducted
In supplier exit management shall
Conduct development and inspections of 292 suppliers and be implemented.
certification reviews by category eliminated 39.
and, upon approval, place them in Elimination deadlines are
the temporary supplier database clearly defined: "actively exiting"
or certified supplier database. is limited to 3 months, and
"passively exiting" is limited to 2
years.
In 2025, the Company eliminated
a total of 458 suppliers.
The Company continues promoting the digital and intelligent transformation of the supply chain. The global procurement platform (iGSP),
independently developed by the Company, has covered 27 countries and regions, enabling transparent and standardized operations
throughout the entire procurement process. Through the platform's intelligent functions, operational efficiency has been significantly improved, 3
The 2025 supplier data statistics include internally assisted suppliers, but exclude suppliers that were phased out or moved to the blacklist by the end of 2025.
significantly shortening the time for supplier information review, contract signing and delivery cycles. Meanwhile, the platform's intelligent 4
he number of production suppliers for each category may overlap, so the total number of production suppliers is not equal to the sum of production suppliers
T
customer service operational capabilities continue to strengthen, knowledge bases are continuously enriched, and in 2025 it cumulatively broken down by category.
provided 43,825 online question-and-answer services, with an automatic problem-solving rate of 74.71%.
< 50 51 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Supplier Risk Identification Process
Supplier Communication
SANY Heavy Industry deepens exchanges and communication with suppliers through various approaches, including establishing the
Risk During the admission stage, comprehensive risk assessments of businesses are conducted to classify suppliers into four
"Supplier Alliance" platform, technical exchange meetings, and regular training. In 2025, the Company conducted a satisfaction survey
Classification levels, from L1 (no risk) to L4 (high risk).
among important production suppliers, with a score of 4.351, representing an increase of 0.115 points over the previous year. At the
same time, the Company continued promoting technical collaboration, support and executive-level exchanges centered on supplier
reviews and support, thereby systematically enhancing the overall capabilities of the supply chain. In 2025, the Company provided
specialized support and capability enhancement for a cumulative number of 190 suppliers.
Annual external risk identification is carried out for all production suppliers and non-production suppliers with signed
Identification
Plan contracts.
Case? ? The Tech Lecture Series: Conducting a Frontier Hydraulic Technology Exchange with
Bosch Rexroth
Disposal Risk information will be automatically pushed to the responsible person, who will verify, make decisions, and update
Plan the risk status indicators. On March 14, 2025, the Company invited Bosch Rexroth to host a dedicated technical exchange session at the Xingsha
Industrial Park. Experts from Bosch Rexroth focused on innovative solutions integrating hydraulic transmission, electric drive,
and intelligent control technologies, and shared pathways for enhancing efficiency through automation and digitalization.
The exchange provided valuable insights for collaborative innovation in forward-looking technologies, supporting the
Reduced
advancement of products toward greater intelligence and sustainability.
Burden Through Risk identification results are reviewed regularly, and for duplicate risks that have already been identified, the review
Repeated
Review process may be streamlined.
Screening
Equal Treatment to SMEs
ESG Management of Supply Chain
Adhering to the principles of "Justice, Fairness, and Openness," SANY Heavy Industry is committed to fostering a non-discriminatory
The Company has deeply integrated ESG requirements into supply chain management and, through rigorous review, risk identification, competitive environment for all suppliers, including small and medium-sized enterprises (SMEs). The Company has formulated the
and collaborative improvement, guides and empowers partners to enhance sustainability performance. Non-Production Procurement Management Policy and uses the iGSP platform to publicly release tender and bidding information to
the society, ensuring equal opportunities for small and medium-sized enterprises (SMEs) to win bids. In 2025, the Company publicly
Supplier ESG Management Measures released 6,633 non-production procurement projects on the iGSP platform. At the same time, the Company strictly performs contracts
and makes timely payments, with no malicious arrears of payments owed to SME suppliers.
Environmental
During the review process, environmental management system certification (such as ISO 14001),
environmental impact assessment acceptance reports, emission permits, and other items are included
within the assessment scope;
The Company pays close attention to suppliers' carbon reduction actions, encourages suppliers to set
carbon emission reduction targets, adopt energy conservation, emissions reduction measures, and
promote green procurement;
supplier cooperation, we actively advocate and explore recyclable logistics packaging models and are
In
committed to working with suppliers to reduce resource consumption and packaging waste.
Human Rights
During the review process, talent development plans, employee satisfaction surveys, and employee
safety and health are included within the assessment scope;
The Company pays close attention to the human rights of suppliers' employees and examines whether
suppliers have issues such as forced labor, child labor employment, and employment discrimination.
Quality
Quality Management System certifications (such as ISO 9001 certification and TL 9000/IATF 16949
certification) are included within the scope of supplier assessment.
Business Ethics
The Company has launched a supplier business ethics certification module on the global procurement
platform (iGSP), requiring all suppliers to complete relevant anti-corruption training and an online exam,
thereby strengthening the development of an honest supply chain at the source.
< 52 53 >
Exploring Low-Carbon
Pathways for First-
Class Practice
SANY Heavy Industry integrates "green and low-carbon" into
the DNA of its operations and actively explores new pathways
for sustainable development. We have established systematic
environmental management, energy management, and
ecological protection systems to achieve excellent operations
across multiple dimensions, including climate change
response, reducing environmental impact, and improving
resource efficiency, thereby using first-class environmental
performance to drive harmonious coexistence among the
enterprise, society, and nature.
Climate Change Response
Environmental Management
Ecological Protection
Green Development
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Climate Change Response
To systematically promote climate governance, SANY Heavy Industry has established a three-tier governance and execution system
composed of the Board of Directors, the Sustainability Committee, and the Sustainable Development Working Group, supported by
regular meeting and reporting mechanisms to ensure the effective formulation and implementation of climate strategies.
The Company attaches importance to the management team's sustainability management and capacity building for climate change
Climate change is a systemic challenge faced globally. As a leading global equipment manufacturer, SANY Heavy Industry fully response, and invites external climate experts to provide special training for the Board of Directors, the Sustainability Committee,
recognizes its responsibilities and opportunities in advancing the green transformation of the industry. The Company strictly and the Sustainable Development Working Group, deepening members' understanding and application of mainstream international
follows Part D of the ESG Reporting Guide : climate-related disclosure framework, and with reference to standards such as the climate frameworks, risk identifications, and carbon management tools, thereby systematically strengthening the Company's strategic
International Sustainability Standards Board (ISSB)'s IFRS Sustainability Disclosure Standard 2—Climate-Related Disclosures (IFRS decision-making and risk management capabilities in relation to climate-related matters.
S2), systematically identifies, evaluates, and manages climate-related risks and opportunities.
Climate Change Strategy
Climate Change Governance To systematically address the challenges of climate change, SANY Heavy Industry has established a comprehensive climate risk and
opportunity management system. Based on internationally recognized frameworks, the Company identifies short-, medium-, and
long-term risks through scenario analysis and deeply integrates climate factors into the Company's strategy and operations. We are
SANY Heavy Industry places great importance on climate change and has established and continuously improved a three-tier governance committed to enhancing overall climate resilience and proactively transforming the systemic pressures of low-carbon transformation
structure comprising the governance, management and execution levels, deeply integrating the governance of climate change response into sustained competitive advantages in green technology, products, and markets.
into the Company's overall sustainability management structure to ensure that climate-related issues receive adequate oversight.
Climate Governance Responsibilities and Working Mechanism of SANY Heavy Industry Climate Scenario Selection
To systematically identify and evaluate the potential risks and opportunities brought about by climate change, SANY Heavy Industry
conducted forward-looking scenario analysis with reference to climate scenarios published by internationally authoritative institutions.
Assumes ultimate responsibility for climate change management and is responsible The Company selected the Shared Socioeconomic Pathways (SSP) scenarios of the Intergovernmental Panel on Climate Change
for approving the Company's climate-related strategy, medium- and long-term (IPCC) and the energy transition scenarios of the International Energy Agency (IEA) to simulate the possible impacts on the Company's
targets, and low-carbon transformation pathway;
operations under different climate policy and warming pathways from the two dimensions of physical risk and transition risk, thereby
Oversees the integration of climate performance indicators into senior management enhancing strategic resilience and providing a basis for long-term decision-making.
Governance Board of Directors
compensation assessment;
level
Reviews and approves climate-related financial disclosures reports and other
public disclosure documents;
Climate Scenario Selection
Holds at least one special meeting on climate change each year.
Climate Selected
Scenario Description Key Scenario Assumptions
Scenario Type Scenarios
Responsible for formulating climate action strategies and annual targets and for Low-emissions scenario: globally, development follows a
identifying and evaluating climate-related risks and opportunities; The SSP series scenarios are a set of sustainable development pathway, with coordinated and
Guides the formulation of relevant policies on emission reduction and energy SSP1-2.6 hypothetical scenarios proposed by the robust climate action to achieve rapid emission reduction
Management Sustainability Committee management; Intergovernmental Panel on Climate Change and low-carbon transformation, limiting the temperature
(IPCC) for evaluating possible future pathways increase to within 1.5℃ .
level Oversees progress towards carbon neutrality targets and promotes the application
of mechanisms such as internal carbon pricing; Physical of GHG emissions and climate change. Among
scenario them, SSP refers to Shared Socioeconomic
Convenes one meeting each quarter and reports to the Board of Directors. Pathways, 2.6 indicates that radiative forcing High-emissions scenario: global development relies on fossil
stabilizes at 2.6 W/m? by 2100, and 8.5 fuels, GHG emissions continue to grow rapidly, and climate
SSP5-8.5 indicates that radiative forcing stabilizes at policies remain relatively weak, resulting in a possible global
approximately 8.5 W/m? by 2100. temperature increase of more than 4℃ by the end of this
century.
Supports the Board of Directors and the Sustainability Committee in implementing
climate actions and is responsible for the day-to-day coordination and implementation
of climate-related matters; Stated Policies Scenario: nations implement only
Sustainable Development Prepares for relevant committee meetings and implements their resolutions; STEPS announced climate change and energy policies, without
NZE (Net Zero Emissions) and STEPS
Execution Working Group introducing additional new commitments.
Tracks and consolidates the progress of emission reduction efforts across business (Stated Policies Scenario) are both scenarios
level units;
Transition
proposed by the International Energy Agency
scenario
Collects and calculates climate-related performance data to ensure compliance (IEA) to describe possible future energy mix
Net Zero Emissions scenario: the world takes the most
with internal and external disclosure and compliance requirements. and emissions pathways.
NZE stringent actions to ensure net zero energy-related CO2
emissions by 2050 and keep temperature rise within 1.5℃.
< 56 57 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Taking into account the national strategic objectives of Carbon Peak and Carbon Neutrality and the Company's own development Transition Risk and Opportunity Impacts of SANY Heavy Industry
plans, and in accordance with the regulatory requirements and by referring to the practices of industry peers, the Company has clearly
defined short-, medium-, and long-term time horizons and conducted assessment of climate change risks and opportunities based on
Category Risk/Opportunity Item Short-term Medium-term Long-term
different time horizons.
SANY Heavy Industry Climate Risk Analysis Time Horizons Carbon pricing risk Low Low Low
Policy and legal risk
Stage Short-term Medium-term Long-term Energy saving and emission
Low High High
reduction policy
Time Horizon 2026 to 2030 2031 to 2035 2036 to 2050
Technology risk Technology iteration risk Low Medium Medium
Transition
risk
Climate Risk Analysis and Assessment Changes in consumer demand Low Medium Medium
Market risk
SANY Heavy Industry systematically conducted scenario analysis of climate-related risks and opportunities. At the physical risk level, Supply chain stability Low Medium Medium
the Company referred to the IPCC Shared Socioeconomic Pathways (SSP) scenarios, with a focus on evaluating the long-term climate
challenges that the Company's major manufacturing bases and R&D centers worldwide may face by 2050 under the SSP1-2.6 low-
emissions scenario and the SSP5-8.5 high-emissions scenario. The analysis covered disaster types such as extreme heat, extreme cold, Reputational risk Stakeholder concerns Low Low Low
extreme precipitation, and typhoons to identify their potential impacts on the safety of the Company's assets, production continuity,
and supply chain stability. The assessment indicates that extreme heat and typhoons are the key risks requiring priority attention.
At present, the Company has brought the relevant risks within a controllable range through emergency plans and facility resilience
upgrade planning.
SANY Heavy Industry Physical Risk Impacts
SSP1-2.6 SSP5-8.5
Physical Risk
Short-term Medium-term Long-term Short-term Medium-term Long-term
Extreme heat weather Low Medium High Low Medium High
Extreme cold weather Low Low Low Low Low Low
Typhoon weather Low Medium Medium Medium High High
Extreme precipitation Low Low Low Low Low High
In addressing the global low-carbon transformation, SANY Heavy Industry has systematically identified the transition risk and
opportunities arising from shifts in policy, technology, and the market. With reference to analysis under the International Energy
Agency (IEA)'s Net Zero Emissions (NZE) and Stated Policies Scenario scenarios, policy compliance and changes in market demand are
the primary challenges facing the Company over the medium and long term, while also creating opportunities for the development
of new electrified and intelligent products and services, as well as room to improve resource efficiency across the entire value chain.
To this end, the Company integrates response measures into its "globalization, digitalization, and decarbonization" strategy and
proactively manages risks and captures opportunities through green technology R&D, zero-carbon factory development, and supply
chain optimization, thereby continuously strengthening its competitive advantages in fields such as new energy products.
< 58 59 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
SANY Heavy Industry systematically identifies climate-related risks and opportunities by comprehensively reviewing regulatory Assessment of Climate-Related Transition Risks and Response Strategies
requirements, industry benchmarks, and value chain data, among other factors, and conducts specific assessments using a multi-
scenario analysis process that combines quantitative and qualitative approaches, covering physical and transition risks and
Risk Impact
opportunities, short-, medium- and long-term time horizons, and different business processes such as the supply chain and upstream Risk Type Risk Item Potential Impact on the Company Response Measures
Subcategory Period
and downstream transportation, in order to formulate targeted response strategies.
For key products exported to Europe,
International carbon tariffs, such as the EU CBAM,
the Company is advancing carbon
Assessment of Climate-Related Physical Risks and Response Strategies require exported products to provide carbon
footprint certification. To date, third-party
Carbon pricing footprint certification, creating market entry
/ verification has been completed for two
risk barriers and potentially resulting in lost export
products, electric trucks and wind turbines,
Risk Risk Impact orders to Europe and higher additional compliance
to meet core customer access requirements
Potential Impacts on the Company Response Measures costs.
and avoid order risk.
Type Item Period
Policy and
Increased brittleness of raw materials such as steel may raise the Legal Risk The Company has established a digitalized
rate of failures in quality inspection, driving up quality control and Establish meteorological early warning and emergency Energy saving energy and emissions monitoring system
command procedures; stock snow-melting agents and snow- Increasingly stringent carbon regulatory policies
emergency procurement costs. and emission and improves cost efficiency through
domestically and internationally are driving up
removal equipment; implement standardized snow-removal reduction Medium measures such as deploying photovoltaic
Road icing and snow accumulation may lengthen logistics operational compliance costs. To meet higher
and traffic-maintenance operations to safeguard smooth policy (carbon to long- systems, procuring green electricity and
turnaround time, increase transportation costs, and potentially standards, capital expenditures on energy-saving
logistics. emissions term applying energy-efficient equipment. It has
affect the progress of on-site delivery to customers. upgrades and R&D investment in electrification will
Complete anti-freezing upgrades and insulation treatment compliance designated product electrification as a core
continue to increase.
Increased viscosity of hydraulic oil in equipment requires for critical pipeline equipment; formulate low-temperature pressure) strategy and established a dedicated office
Extreme preheating before startup, resulting in reduced effective operating operating procedures for equipment; dynamically adjust to promote it.
cold time, lower production capacity, and increased energy use. / planning and prioritize indoor processes.
weather
Activities at outdoor testing grounds may be hindered, and The shift toward electrification and intelligent Adopt a dual-track strategy of "hardware
D
ynamically adjust outdoor testing plans and shift to indoor transformation may accelerate the depreciation upgrades" and "talent reserves,"
low-temperature conditions may affect the testing efficiency validation; funding has been earmarked for the optimization
of components such as batteries, potentially slowing the R&D of assets in traditional production lines, resulting Medium proactively iterating high-energy-use
and testing of the building's heating system. Technology Technology
validation cycle. in stranded assets. Meanwhile, sustained high to long- equipment to reduce the risk of asset
Risk iteration risk
Strengthen patrol inspection of heating systems in the plant levels of R&D investment carry the risk that term stranding; plan a dedicated budget with a
In low-temperature conditions, personnel may experience area and install additional cold-protection facilities in key judgments on technology pathways may fall short focus on investment in frontier technology
reduced operational flexibility, while slippery environments Transition
areas; equip personnel with professional cold-weather gear of expectations. R&D and talent recruitment.
increase the risk of work-related injuries, potentially resulting in Risk
and adjust work arrangements.
lower efficiency and increased safety investment. Sustainability-related market entry requirements Increase the share of electric equipment
in overseas markets, particularly in Europe, are among the Company's principal export
High temperatures cause thermal expansion of raw materials, Changes in becoming increasingly stringent. Customers Medium products for the European and U.S. markets,
Provide heat allowances, heatstroke prevention supplies and
leading to fluctuations in dimensional accuracy, increasing consumer regard product carbon footprints and low- to long- and continue to obtain international carbon
personal cooling equipment; strictly enforce requirements to
incoming material quality inspection costs, and potentially demand carbon performance as key procurement criteria, term footprint certification for key products as
suspend outdoor operations during periods of extreme heat.
affecting suppliers' production capacity. and failure to meet these requirements may a critical credential for securing high-end
Implement cooling measures such as water spraying and result in a loss of market share. orders.
It increases the load on the cooling systems of transportation Market Risk
ventilation at operating sites; strengthen inspections of
vehicles, raises the risk of malfunctions and fuel consumption,
vehicle and equipment cooling systems and heat dissipation In the supplier admission process,
and may lead to delivery delays. The green transformation of upstream suppliers
Extreme Medium- maintenance. preference is given to low-carbon suppliers,
Rising workshop temperatures increase the risk of hydraulic and carbon compliance requirements across Medium
Heat to long- Optimize workshop ventilation and localized cooling; adjust Supply chain and cost pressures are alleviated through
equipment overheating and shutdowns, accelerate hydraulic oil the entire value chain may drive up raw material to long-
Weather term production shifts to avoid continuous operations during stability lightweight design. The establishment of
consumption, and drive up maintenance costs and energy use. procurement costs and increase the complexity term
periods of extreme heat. a green supply chain management system
of supply chain management.
High temperatures hinder outdoor testing, affect equipment heat has been identified as a key task for 2026.
A
djust outdoor testing plans during periods of extreme heat;
dissipation and the stability of test data, and may delay product
strengthen heat dissipation protection for testing equipment.
validation. Being labeled as a high-carbon entity may attract Proactively disclose emissions reduction
Physical
Coordinate with suppliers to address high-temperature scrutiny from financial institutions, posing a risk progress to reinforce confidence and
Risk It increases the risk of heatstroke among outdoor workers, and
production challenges; strengthen temperature control in raw of moderately elevated financing costs. strengthen alignment with financial
high temperatures reduce attention and operational accuracy,
material storage. Reputational Stakeholder institution partners.
affecting production efficiency. An unclear carbon neutrality roadmap or /
Risk concerns environmental compliance violations could E
nhance compliance management and
It may cause upstream raw material production stoppages and Issue management protocols for abnormal weather and trigger negative public sentiment, resulting in engage in transparent environmental
disruptions to logistics channels (roads and ports), resulting in initiate emergency responses; coordinate regular inspections short-term impact on key client relationships or communications to safeguard and sustain
supply shortages and rising emergency procurement costs. across multiple departments to safeguard the flood control regional brand perception. brand reputation.
capacity of supply chain nodes and logistics corridors.
The risks of water ingress in plant buildings and moisture damage
to equipment increase, while excessive humidity may affect the Install flood control facilities at critical locations;
quality of processes such as welding and painting, resulting in comprehensively clear drainage systems before the rainy
higher repair costs and production delays. Medium- season; implement drainage upgrades and technical
Extreme
to long- improvements to equipment foundations.
Rainfall Outdoor testing activities are disrupted, and R&D facilities may term
face leakage risks, affecting equipment and data safety and Strengthen sealing and drainage maintenance at R&D sites;
slowing testing progress. adopt rainproof covering or relocation measures for outdoor
testing equipment.
Employees' commuting may be disrupted, and the risks of
slippery floors in operating areas and electrical leakage from Lay anti-slip mats in slippery areas and set up warnings;
electrical equipment may increase, potentially causing work- strengthen insulation inspections of electrical equipment;
related injuries. conduct safety training for rainy-day operations.
It may significantly affect maritime transportation, potentially Secure insurance coverage for maritime transportation;
causing shipping schedule delays and affecting the supply maintain safety stock of essential parts; use smart platforms
of imported raw materials and components; local land for early warnings.
transportation may also be disrupted.
Carry out wind-resistance retrofitting or design for plant
Production planning adjustments and delivery delays may result buildings; clear drainage systems in advance and equip
from external supply disruptions, temporary power outages at Short-, facilities with emergency power supplies and flood control
Typhoon industrial parks, or water accumulation. medium-, equipment.
Weather and long-
Strong winds and heavy rainstorms may force the suspension of term W
ith abnormal weather management protocols in place,
outdoor testing activities, while testing equipment faces risks of reinforce elevated facilities and immediately suspend outdoor
wind damage and flooding. testing during typhoons to ensure equipment safety.
Safety risks for field personnel will increase, and production sites During typhoons, arrange shuttle services to transfer essential
may need to arrange for personnel to suspend operations and personnel and deliver meals; purchase property insurance for
seek shelter, affecting attendance and working hours. plant assets.
< 60 61 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Assessment of Climate-Related Transition Opportunities and Response Strategies Results of SANY Heavy Industry's Analysis of the Financial Impacts of Climate-Related Risks
Opportunity Risk/Opportunity Risk/Opportunity Financial
Potential Impact on the Company Response Measures Current-Period Financial Impacts
Item Category Item Materiality
Invest R&D resources to explore cooperation with universities Increased raw material procurement and quality inspection costs; increased
O ptimize high-energy-use processes through intelligent and research institutions on energy conservation and carbon logistics and transportation expenses; increased production energy use and
Extreme cold weather Low
reduction processes. maintenance expenses; and indirect costs caused by delays in the progress
monitoring to directly reduce energy use and water consumption
of R&D testing
Use clean per unit of output value and lower energy cost. Upgrade production equipment, improve the workflows of
technologies Increase the recycling rate of scrap steel, adopt water-based paint, high-energy-use procedures such as welding and coating, and Increased production energy use and cooling expenses; increased
implement dedicated energy conservation retrofits. equipment maintenance and oil consumption costs; indirect costs caused
to improve and reuse reclaimed water to reduce raw material and water Extreme heat weather Low
by delays in the progress of R&D testing; and increased expenses for labor
resource consumption, as well as the related procurement expenditures. Evaluate the deployment of distributed photovoltaics, energy protection and heatstroke prevention and cooling
efficiency S
trengthen cost control and environmental protection storage, and intelligent microgrids at production bases to Physical risk
performance during production through systematic management increase the proportion of green electricity. Increased procurement costs caused by supply chain disruptions; increased
contract fulfillment costs caused by logistics delays; increased repair
of energy efficiency and material consumption. Explore remanufacturing business, improve the waste Extreme rainfall Low
expenses due to equipment damage from moisture exposure; and operating
management system, and enhance resource recycling. revenue losses caused by production suspension or delivery delays
Capture the clear demand in the European and American markets Conduct market research, track policies in key markets and Increased supply chain costs caused by delays in maritime transportation;
for electric and low-carbon equipment, launch new energy customer needs, and flexibly adjust products and market efficiency losses and overtime costs arising from adjustments to planning;
Typhoon weather Low
products to seize high-growth market share, and increase revenue. strategies. and increased expenses for disaster prevention emergency response and
asset maintenance
Develop data services such as fuel analysis and intelligent Increase R&D investment in new energy products such as
Products
construction to promote the transformation from "equipment electrification, intelligent technologies, and hydrogen energy to Increased procurement costs for green power and carbon allowance
and services
sales" to "products + service" and enhance customer loyalty and seize market opportunities. Carbon pricing risk
purchases, higher costs for product carbon footprint verification and
Low
earnings stability. certification, and rising compliance management expenses to meet market
Actively explore value-added businesses such as equipment access requirements in the international market
By providing green solutions, reinforce the Company's image as an leasing, remanufacturing, and data services to deliver
industry leader in intelligent development and electrification. comprehensive competitiveness. Energy saving and Increased capital expenditures for energy conservation equipment
emission reduction investment and low-carbon upgrades, rising costs for energy and
M High
aintain ongoing attention to policies on green manufacturing, policy (Carbon emissions resource management in operational processes, and higher ongoing R&D
Through projects such as green factory development and energy technological upgrading subsidies, and tax incentives compliance pressure) expenditures to meet more stringent emissions standards
conservation retrofits, apply for government subsidies, incentives,
domestically and internationally.
and tax reductions and exemptions to directly reduce capital Increased R&D capital expenditures for the transformation toward
expenditures and operations costs related to transformation. Systematically promote green factories and energy conservation electrification and intelligent transformation, accelerated depreciation or
Policy
projects, and proactively prepare for and apply for various Technology iteration risk impairment losses on traditional production line equipment, and higher Medium
support With sound carbon management practices, the Company is better market-based recruitment and training costs to acquire new technologies
government subsidies and tax incentives.
positioned to obtain green credit, issue green bonds, and secure and talent
Leveraging green practices, proactively engage with financial Transition risk
low-cost capital management to support long-term R&D and
institutions and explore financing instruments such as green Increased R&D expenditures for developing green products, such as electric
investment.
credit and green bonds. Changes in consumer equipment, higher marketing expenses related to market promotion
Medium
demand and customer education, and rising compliance costs associated with
Install distributed photovoltaic systems at operating bases Systematically evaluate climate-related risks and opportunities international product certification and market access
to reduce the cost of purchased electricity and, in extreme and formulate response contingency plans.
Increased administrative expenses for the development and review of green
circumstances, safeguard basic production capacity and enhance E
valuate and promote the construction of distributed suppliers, higher procurement costs arising from low-carbon raw materials
operations continuity. Supply chain stability Medium
photovoltaic systems at major operating bases to reduce energy or components, and increased system investment for the collaborative
Enhancing management of supply chain carbon data
By improving the quality of ESG disclosure and brand reputation, costs and dependence.
corporate
attract long-term investors who prioritize sustainable development Explore in-house development and internal production
resilience Rising costs associated with specialized audits and assurance services
and optimize valuation and the financing environment. capabilities for key components, such as batteries. required for ESG disclosure compliance
Stakeholder concerns Low
Explore in-house capabilities for key components, reduce external Continuously improve the quality of ESG information disclosure, Increased brand-building investment directed toward enhancing the
dependence, and enhance the overall resilience of the supply proactively communicate green achievements, and attract organization's corporate sustainability profile
chain. investors focused on long-term value.
Savings in operating costs resulting from reductions in energy use, water
Improving resource
consumption, and material consumption, as well as increased capital
efficiency through the Medium
expenditures for the application of energy-saving and consumption-
use of clean technologies
Financial Impact Assessment
reduction technologies
Revenue growth driven by new products such as electrified and intelligent
products, increased income generated by new models such as leasing,
Products and services High
Based on an analysis of the operating model and industry characteristics, the impact of climate-related risks on the Company's overall remanufacturing, and data services, and corresponding increases in R&D
Transition and market development expenditures
financial position is currently within a controllable range. Without additional response measures, physical risks, such as extreme cold
opportunity
weather, extreme heat weather, heavy rainstorms, and typhoons, may disrupt the supply chain, delay logistics, and affect continuity Obtaining subsidies and tax rebates related to government initiatives such
of production and the progress of R&D testing, resulting in temporary increases in raw material and energy costs, delivery delays, Policy support as green manufacturing and technology upgrades, and optimizing financing Low
costs through the issuance of green bonds or access to green credit
and efficiency losses, but with limited impact on the Company's overall profitability. In terms of transition risk, carbon pricing, green
supply chain management, rapid iteration of technology pathways, and market access barriers in the international market will Reducing purchased power costs through self-generation methods such
increase compliance, R&D, and capital expenditures, and may accelerate the impairment of certain traditional assets. The Company Enhancing corporate as distributed photovoltaic systems, thereby lowering operating costs, and
Medium
has incorporated the relevant costs and risks into its long-term strategic planning and management system through forward-looking resilience attracting long-term investment by enhancing ESG performance to reduce
the cost of capital
technology deployment, investment in green manufacturing, and adjustments to market strategy.
< 62 63 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Climate Risk Management Metrics and Targets
SANY Heavy Industry has systematically integrated the identification and response of climate-related risks into the enterprise's long- SANY Heavy Industry actively supports the nation's "carbon peak and carbon neutrality" strategy, systematically plans its low-carbon
term development strategy, comprehensive risk management, and corporate governance framework. The Company is committed to transformation pathway, continuously reduces carbon emissions intensity, and has set a clear GHG emission reduction target: using
promoting the deep coordination of climate risk assessments with core business processes such as manufacturing, R&D testing, and 2021 as the baseline year, by 2030 GHG emissions per unit of product will be reduced by 35.5% compared with 2021.
supply chain management, and is gradually building an institutionalized and normalized climate risk management process to achieve
forward-looking management of transition and physical risks while systematically capturing green market opportunities. To promote green development, the Company continues to explore and implement carbon emission reduction initiatives in equipment
production, factory operations, and logistics distribution by strengthening energy management, deepening internal communication,
introducing digital tools, and promoting technology upgrades, with the aim of systematically reducing GHG emissions throughout
Risk Identification Risk Assessment
operations and the products life cycle.
Establish a regular mechanism to systematically track Conduct qualitative and quantitative analysis of identi? In addition, we have established a full-process GHG emissions monitoring system to continuously conduct precise collection,
policies and regulations related to carbon emissions, green fied risks to assess the likelihood of occurrence, the scale systematic analysis, and dynamic tracking of emissions data from manufacturing, supply chain operations, and equipment use,
manufacturing, and product market access domestically of potential financial impacts, and the relevant time providing data support for achieving science-based carbon reduction.
and internationally, such as developments in China's horizons.
carbon market and the EU CBAM, and to monitor changes GHG Emissions Performance
in extreme weather patterns and market competition. Measure risk exposure by analyzing the impacts of risks
on key operational and financial indicators, including
Based on the Company's global operations and supply raw material procurement costs, production and logistics Indicators Unit Data for 2025
chain layout, systematically identify physical risks and efficiency, capital expenditures, R&D cycles, and market
transition risks that may affect production continuity, orders.
Total GHG emissions (Scope 1+Scope 2) tCO2e 345,006.20
supply chain stability, cost structure, and market access,
and formulate and regularly update the List of Climate-
Related Risks and Opportunities . —Total direct GHG emissions (Scope 1)5 tCO2e 76,112.84
—Total indirect GHG emissions (Scope 2)6 tCO2e 268,893.36
Risk Response Risk Monitoring
GHG emissions intensity (Scope 1+Scope 2) tCO2e / RMB 1,000,000 3.87
Based on risk assessment results and the Company's Establish and track a series of key performance indicators,
strategy, formulate specific response targets and action such as energy use per unit of output, carbon emissions
plans, and integrate them into the annual plans and intensity, sales revenue from new energy products, and the Other Indirect GHG emissions (Scope 3) tCO2e 60,005.99
budgets of each business unit, such as production, R&D, completion rate of audits of high-risk suppliers, in order to
supply chain, and sales. monitor emission reduction progress, risk exposure levels,
and the effectiveness of measure execution. ——Category 3 – Fuel- and Energy-Related Activities7 tCO2e 51,742.15
For high-priority risks, deploy specific management
measures, such as weather-resilience upgrades for R
egularly review the target achievement status of climate
——Category 7 – Employee Commuting8 tCO2e 8,263.84
production equipment, establishing green supply chain targets, the status of major risks, and the effectiveness
standards, and promoting product electrification and of response measures, and dynamically review and
carbon footprint certification; define the responsible optimize management strategies based on changes in the
department; and formulate emergency plans for scenarios internal and external environment, developments in new
involving critical operational disruptions, so as to reduce technology, and regulatory requirements.
finance impacts and capture green market opportunities.
otal direct GHG emissions (Scope 1): Mainly include emissions from the combustion of gasoline and diesel for administrative and transportation vehicles, as well as
T
emissions from the use of natural gas. Calculation basis: the Guidelines for the Accounting and Reporting of GHG Emissions by Machinery Manufacturing Enterprises
(Trial) .
Total indirect GHG emissions (Scope 2): Mainly include emissions from purchased electricity and purchased heat. The national grid emission factor is based on the
Notice on Effectively Conducting the Administration of GHG Emission Reporting of Power Generation Enterprises from 2023 to 2025 .
ther Indirect Greenhouse Gas Emissions (Scope 3), Category 3 – Fuel- and Energy-Related Activities: This category primarily includes upstream emissions associated
O
with the production and use of gasoline, diesel, natural gas, and electricity, as well as emissions arising from transmission and distribution losses of purchased
electricity. Calculations are based on the UK Government GHG Conversion Factors for Company Reporting and the 2024 National Electricity Carbon Footprint Factor
published by the Ministry of Ecology and Environment of China.
ther Indirect Greenhouse Gas Emissions (Scope 3), Category 7 – Employee Commuting: This category mainly covers emissions generated from employees'
O
daily commuting. Calculations are based on the Commuting Monitoring Report of Major Chinese Cities published by the China Urban Planning Network.
< 64 65 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Environmental Management Management Initiatives
SANY Heavy Industry integrates the concept of green development throughout its operations. Centered on the HSE Management
SANY Heavy Industry actively fulfills its environmental protection responsibility by establishing a systematic, end-to-end environmental Manual , it has established an environmental management system covering all stages, and has formulated specific management
management system and implementing specific initiatives covering energy conservation, emissions reduction, resource recycling, and standards for environmental assessment and management, hazard identification, emergency management, HSE reviews, and
ecological protection, it minimizes the impact of operations on the ecological environment, promotes the harmonious coexistence agreement signing, systematically promoting environmental risk prevention and control and sustainable operations.
of industrial production and the natural environment, and consolidates the green foundation for the Company's high-quality
development. In 2025, SANY Heavy Industry's environmental protection investment reached RMB 280 million. Lifecycle Environmental Management
Management System Environmental Impact Assessment Environmental Monitoring
Before the project starts, the Company strictly complies with the Each Company formulates monitoring plans based on its actual
The Company strictly complies with the Environmental Protection Law of the People's Republic of China and other applicable legal and regulatory requirements of the region where the project circumstances. Automated monitoring, manual monitoring,
laws and regulations. With reference to standards such as the ISO 14001 Requirements and Guidance for Use of Environmental is located and carries out environmental impact assessment in commissioned testing, and other methods, thereby establishing
Management System and the ISO 45001 Requirements and Guidance for Use of Occupational Health and Safety Management System, depth. a robust environmental monitoring system.
it has formulated and regularly revised internal documents, including the HSE Management Manual , applicable to all subsidiaries,
to comprehensively improve its health, safety, and environment (HSE) management mechanisms. In 2025, the Company revised and It comprehensively investigates and evaluates the adverse E
ach Company strictly complies with emission standards in its
impacts and potential risks that may be caused to the emissions, formulates self-monitoring plans, and conducts third-
issued a total of 9 management procedures, including the Environmental Policy, HSE and 6S Management Manual, Sustainability (ESG)
surrounding environment throughout the project life-cycle, while party assessments of emission permits. It carries out monthly,
Management Policy , and the Procedures for Accident Reporting, Investigation, and Handling, to further advance system improvement.
formulating scientific and reasonable risk response measures quarterly, and annual environmental monitoring in strict
to minimize or eliminate adverse effects to the greatest extent accordance with applicable standards and, on this basis, completes
The Company has established a three-tier management structure, SANY Heavy Industry Environmental
possible. work related to environmental impact audits, thereby minimizing
under which the President supervises and examines major HSE Management System Structure
potential environmental impacts to the greatest extent possible. In
decisions of the Company and oversees the handling of major 2025, the licensed pollutant discharge rate reached 100%, with no
HSE abnormal events. The Sustainability Committee promotes instances of exceeding emission standards.
the implementation of environmental, health, and safety Decision-
President
initiatives and reports progress to board members, ensuring Making Level
the effective implementation of HSE management system "Four New" Introduction Management Emergency Management
requirements. In 2025, a total of 5 President's office meetings Management Level Sustainability Committee
were convened to hold special discussions on major matters When introducing new equipment, materials, technologies, or The Company identifies and mitigates potential environ_mental
related to environmental management. processes (the "Four New"), the Company identifies and assesses and safety incidents or emergencies so that response measures
Execution Level HSE Office project hazards and environmental factors for the project to can be taken in a timely manner.
The Company has established a systematic closed-loop ensure that all aspects comply with safety and environmental
mechanism for HSE targets and performance management, setting regulations. All subsidiaries of the Company have prepared emergency plans
for sudden environmental accidents and emergency plans for
annual targets and promoting their cascading implementation by
Before adopting new processes, technologies, or materials, production safety accidents. Each year, they carry out no fewer
subsidiaries. To strengthen responsibility fulfillment, the Company
or putting new equipment into use, the Company carries out than two emergency drills and training sessions based on actual
has incorporated HSE performance into the annual performance In 2025 HSE education to enhance employees' safety awareness and conditions to enhance their capacity to respond to sudden
contracts of executives and established a direct linkage mechanism operational efficiency. environmental incidents.
with compensation and benefits. It has also formulated the HSE
Reward and Punishment System and a corresponding manual for Standard acceptance procedures are carried out for "Four New"
HSE behavioral rewards and penalties, and adjusts compensation projects.
based on annual assessment results to ensure effective had been certified by the ISO 14001 environmental
management implementation and continuous improvement. management system Employee Training Stakeholder Management
To continuously improve its HSE management standards, the
Company has established a regular, multidimensional internal and T he Company formulates targeted training programs T he Company enters into specialized agreements on
external audit system, conducting one external independent audit the certification coverage rate reached % and competency requirements for employees in various environmental protection and other documents with
each year, one internal site audit every six months, and internal job roles, covering areas such as risk management, case stakeholders to ensure that the responsibilities of all parties are
online audits every month, with the audit scope covering all factories. studies, and emergency prevention/preparedness, in order clearly defined and that measures are fully implemented;
to strengthen employees' HSE knowledge and improve
their response capabilities when issues arise. In 2025, the T
he Company conducts necessary reviews of environmental
heavy truck, heavy lifting, and pump truck business units protection for project contractors, suppliers, and other stakeholders
warehousing, and organized personnel to carry out training and requirements during the course of cooperation;
The Company conducted on-site reviews of the system building and operation Each month, the Company conducts compliance evaluations on the standardized management of hazardous waste and
of the HSE systems of subsidiaries through special 6S9 inspections, and used on the HSE systems of its subsidiaries, covering simultaneous emergency drills for sudden environmental incidents, thereby T he Company conducts safety and environmental assess?
enhancing employees' awareness of environmental protection ments for stakeholders and, with reference to the assessment
the HSE digital platform to monitor safety hazards, safety incidents, and the consideration for construction projects, on-site occupational
compliance and practical capabilities and reducing the standards, imposes economic penalties for cases that fail to
certification rate of personnel engaged in specialized tasks across all businesses. hazard monitoring, and environmental monitoring.
likelihood of potential environmental risks. A total of over meet requirements, thereby effectively constraining stakeholder
< 66 67 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Ecological Protection
Adhering to the philosophy of green manufacturing, SANY Heavy Industry strictly implements national and local standards for Data Related to Waste Gas Emissions in 2025
wastewater and waste gas treatment and solid waste disposal, complies with noise prevention and control regulations, and
applies whole-process management to the discharge and disposal of various types of waste. We have established stringent
Indicators Unit Data for 2025
emissions control targets and are continuing to optimize production processes to ensure that pollutants are emitted in lawful
compliance. At the same time, we actively promote ecological restoration and protection in and around our industrial parks, Total waste gas emissions cubic meter 18,417,283,923.48
striving to protect biodiversity and achieve harmonious coexistence between production operations and the natural environment.
SO2 emissions tonnes 2.44
NOX emissions tonnes 39.60
During the reporting period
VOCs (volatile organic compounds) emissions tonnes 145.20
Total soot emissions tonnes 83.52
not
SANY Heavy Industry did
record any environmental pollution incidents involving waste loss, leakage, or diffusion.
Wastewater Management
production and operations, with chemical oxygen demand
Wastewater emission reduction target
(COD) and ammonia nitrogen as the primary pollutants. The
Company strictly complies with the Water Pollution Prevention
Wastewater, waste gas, and on-site hazardous waste was disposed of in
and Control Law of the People's Republic of China and other laws Taking 2021 as the baseline year
noise emissions met compliance with regulations at
and regulations, treats wastewater by categories for all types of
wastewater generated, and prevents water pollution incidents
through whole-process monitoring and control. At the same achieve a
time, it manages wastewater by combining source control, end-
of-pipe disposal, and reclaimed water reuse, and has established
emission limits that are more stringent than national standards. To
ensure effective execution, the Company requires its subsidiaries reduction in total chemical oxygen demand (COD)
Waste Gas Management to formulate and implement management systems for wastewater
treatment, specify emission limits for pollutants such as COD and
emissions per unit of product by 2030
ammonia nitrogen, strictly control the treatment and discharge
SANY Heavy Industry systematically manages atmospheric emissions in production and business management. Its air pollutants, of industrial wastewater by optimizing treatment processes and
namely volatile organic compounds (VOCs), mainly originate from production and operations processes such as coating and welding. conducting on-line monitoring, and continuously enhance its
The Company strictly complies with the Atmospheric Pollution Prevention and Control Law of the People's Republic of China and management capabilities for the multipurpose use of wastewater.
other relevant laws and regulations, implements stringent requirements for pollutant emissions, and carries out waste gas emissions
management at its production bases to ensure that waste gas emissions comply with environmental protection standards. In 2025, SANY Commercial Vehicles Changsha carried out pipeline modifications, using concentrated water containing high
concentrations of calcium and magnesium ions instead of tap water to clean cab transportation equipment, achieving annual water
savings of 24,175 tonnes.
In 2025, we actively adopted emission reduction measures such
as green processes and environmental protection treatment
Waste gas emission reduction target
equipment, effectively reducing the generation and emissions 2025 Wastewater Discharge-Related Data
of waste gas in production and operations. We invested RMB 2
million in the Lingang factory of Heavy Machinery, completed the
With 2021 as the baseline year Indicators Unit Data for 2025
environmental impact assessment acceptance for a new project,
and built welding fume treatment equipment to control pollution Total water discharge tonnes 507,953.48
by 2030, achieve an from welding operations at the source and strengthen the
Biochemical oxygen demand (BOD) emissions kg 5,293.52
workshop's air cleanliness safeguards. Meanwhile, we invested
Hunan SANY Medium Tonnage Hoisting Machinery Co., Ltd. and
reduction in total volatile organic compounds STE Transmission Equipment Co., Ltd., ensuring compliance with Suspended solids (SS) discharge kg 8,941.17
(VOCs) emissions per unit of products coating exhaust gas emission regulations.
Ammonia nitrogen (NH3) discharge kg 4,545.77
< 68 69 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Waste Management Green Development
SANY Heavy Industry's solid waste mainly arises from daily
production and operations, including general waste and Guided by the dual carbon goals, SANY Heavy Industry deeply integrates green development into the entire value chain of R&D,
Solid waste emission reduction target
hazardous waste. The Company strictly complies with the manufacturing, and operations. We continuously enhance green competitiveness across every process of operations by steadily
Environmental Protection Law of the People's Republic of expanding photovoltaic applications and carrying out energy-saving technological upgrades, thereby promoting cleaner and more
China , the Law of the People's Republic of China on Prevention Taking 2023 as the baseline year efficient energy use structures in factories; by implementing water-saving processes, we make every effort to reduce resource
and Control of Environmental Pollution by Solid Waste , and consumption per unit of output; and by systematically planning ecological spaces and low-carbon facilities, we deliver modern
other relevant regulations and policies, and has formulated intelligent manufacturing bases that coordinate production, ecology, and daily life.
special systems such as the Waste Management Guideline to achieve a
achieve proper whole-process management of solid waste
in accordance with the principles of recycling and harm
minimization. The Company strictly disposes of hazardous
Energy Management
waste in accordance with national laws and regulations, reduction in hazardous waste generated
ensuring effective control of hazardous waste during storage, per unit of products by 2030 SANY Heavy Industry has established its decarbonization pathway around two directions: "energy conservation and efficiency
transfer, and other processes so that it is handled in a safe and improvement" and "energy infrastructure transformation." In terms of energy conservation, the Company has established management
compliant manner. protocols and uses routine inspections and monitoring to track energy use across each production process in real time, implementing
refined management and optimization to improve energy use efficiency. In terms of energy infrastructure transformation, the Company
actively promotes the large-scale application of projects such as photovoltaic and clean energy, reducing reliance on fossil fuels and
Waste-Related Data for 2025 other traditional non-renewable energy sources.
Indicators Unit Data for 2025
The total production of hazardous waste kg 5,904,310.00 Energy Conservation and Carbon Reduction Targets
Total general industrial solid waste discharge tonnes 256,734.58
Taking 2022 as the baseline year Taking 2021 as the baseline year
the Company aims to reduce total energy the Company aims to reduce Scope 1 and
Biodiversity Conservation consumption intensity by 2030 Scope 2 GHG emissions per RMB 10,000 of
output value by 2030
SANY Heavy Industry strictly complies with the Law of the People's Republic of China on Environmental Impact Assessment, the %
Outline for Nature Conservation of China , the Regulations on the Administration of Environmental Protection for Construction Projects ,
and other laws and regulations, fully integrates the philosophy of ecological protection into its business operations processes, strives
achieve
to reduce impacts on ecosystems, and strengthens the protection of vital ecosystems, species, and genetic resources.
net-zero carbon emissions
For new construction and renovation projects, we conduct environmental surveys and assessments during the preparatory phases to by 2050
effectively mitigate and control impacts on the surrounding environment and avoid carrying out construction or operations in legally
designated ecological protection area10, important habitats11, and other areas with critical ecological functions. For projects already
in operation, subsidiaries regularly conduct independent environmental impact assessment monitoring to continuously reduce
environmental burdens.
At the same time, the Company also implements a tiered assessment of environmental sensitivity for project sites and, after confirming
that a project will not cause significant impacts on ecological resources and habitats, promotes subsequent work so as to avoid
Energy Conservation Management
ecological damage to the greatest extent possible and foster the aspiration of harmonious coexistence between humanity and nature.
As of the end of the reporting period, the Company had not carried out production or business activities within ecological protection
red lines. In accordance with standards such as the Code for Construction and Acceptance of Automation Instrumentation Engineering and the
Technical Code of Energy Consumed Monitoring Systems for Large-Scale Public Buildings , SANY Heavy Industry has built an equipment
inter-connectivity system to enable smarter management of production processes, thereby improving production efficiency while
reducing energy consumption. Based on this system, we achieve real-time carbon emission data collection to ensure the timeliness
egally designated ecological protection areas: Defined or confirmed by laws, regulations, policies, and other normative documents as national parks, nature
L and accuracy of data. On this basis, the Company has further refined the standards for measuring and accounting for carbon emissions
reserves, natural parks and other natural protected areas, including World Natural Heritage sites, ecological protection red lines. and, by applying scientific statistical and analytical methods, conducts in-depth mining and analysis of carbon emission data to
I mportant habitats: These include natural concentration areas and habitats of key species, spawning grounds, foraging areas, overwintering sites, and migration identify patterns and pinpoint issues, thereby providing reliable data support for formulating precise emission reduction strategies.
pathways for significant aquatic life, as well as critical breeding grounds, stopover sites, wintering areas, and migration routes for migratory birds and other wildlife.
< 70 71 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Energy Infrastructure Transformation
The Company has formulated the Environmental Protection Equipment Operation Management Policy , integrating energy-saving The Company's future development plans for energy use focus on three main directions: building distributed photovoltaic systems and
measures into all aspects of production activities. Through initiatives such as introducing energy-saving equipment, optimizing energy storage systems, and making extensive use of green electricity, with the aim of establishing a clean, low-carbon, and efficient
operational workflows, and reasonably scheduling equipment use, it has minimized energy wastage to the greatest extent possible energy system. Based on the above plans, the Company has systematically promoted clean energy infrastructure development. We
and continued promoting process carbon reduction. In 2025, the Company carried out a daily precision monitoring for the four prioritize the deployment of distributed photovoltaic and supporting energy storage projects across production bases, making the
meters covering water, power, oil, and gas, accurately identifying key nodes and optimization opportunities for energy consumption generation and use of green energy a core pathway for reducing the carbon footprint of operations. Through the successive investment in
controls, and promoted the implementation of a series of special-purpose upgrades across 19 subsidiaries, including air compressor and construction of a series of projects, the Company's green power supply capacity has been substantially enhanced.
energy-saving upgrades, shifting power loads from peak periods to off-peak and valley periods, and transformer capacity-to-demand
conversion projects, saving a total of RMB 72 million for the year. In 2025, enterprises including Huzhou Heavy Lifting, Lianyuan Pump Road, and SANY Heavy Machinery Kunshan had completed the
construction of photovoltaic and energy storage projects, achieving a total installed photovoltaic power generation capacity of 48 MW
and cumulative annual power generation of 1.74 million kWh. As of the end of 2025, SANY Heavy Industry had applied photovoltaic
Structure of SANY's Equipment Inter-Connectivity System power generation systems at 22 subsidiaries, with clean energy usage reaching 7,736.56 ten thousand kWh and the proportion of clean
energy usage12 at 14.7%.
Quality
ERP PLM MOM
Management Indicators Unit Data for 2025
Purchased electricity kWh 506,772,250.19
Data Integration Control Instructions
Real-time Data Storage and
Connector Acquisition Gas cubic meter 33,255,165.20
Predictive Maintenance
Big Data Analytics
Visualization
Processing
Data Gasoline Liter 4,582.00
Data Processing
Standardization Energy use
Clean energy kWh 77,365,601.75
Multi-source Heterogeneous
Giving Instructions
Real-time Data Acquisition Diesel Liter 1,598,820.94
Total energy consumption13 tce 108,461.82
Industrial Ethereum Wireless Network 4G/5G
he calculation method for the proportion of clean energy utilization: the ratio of photovoltaic power consumption converted into energy consumption to total
T
energy consumption.
Industrial Network Communication Protocol 13
omprehensive energy consumption: The total amount of various energy sources actually consumed in the production of a product or provision of a service during
C
the statistical reporting period, after being converted separately in accordance with the specified calculation methods and units. Basis for calculation: General
Principles for Calculation of Comprehensive Energy Consumption (GB/T 2589-2020).
Heat Automatic
Dimensional Testing Other
AGV Robot CNC Treatment Production
Database Equipment Equipment
Furnace Line
Some Energy-Saving Measures for 2025
To adapt to changes in power policies, SANY Heavy Lifting Ningxiang systematically optimized its electricity use structure and
production scheduling by increasing the proportion of electricity consumed during flat and valley periods and reasonably
avoiding high-price peak periods. Meanwhile, the base adjusted production hours and simultaneously established a daily
monitoring mechanism to ensure effective execution of off-peak scheduling. In 2025, the base saved approximately 180,000
kWh of electricity in total and reduced carbon emissions by approximately 95 tonnes.
< 72 73 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Resource Management Packaging Material Management
We adhere to the philosophy of "refined control throughout all stages" and "circular economy," focusing on water recycling and SANY Heavy Industry regards product packaging as an important process in promoting resource efficiency improvement and reducing
efficiency improvement, while vigorously promoting the greening, reduction, and recycling of packaging materials. Through systematic environmental impact. Adhering to the principle of "eco-design and recycling first," we systematically promote the greening, reduction,
management and technological innovation, we continuously reduce environmental footprints and advance toward a more efficient and recycling of packaging materials. At present, through a series of initiatives such as optimizing packaging design, promoting
and cleaner model of resource utilization. renewable and recyclable materials, and establishing a closed-loop recycling system, we are continuously reducing disposable
packaging consumption and improving resource utilization efficiency. We will continue to deepen collaborative innovation with
Water Resource Management
partners, actively explore intelligent and standardized green packaging solutions, and build a green supply chain.
SANY Heavy Industry strictly complies with national policies The Company continues to strengthen full-process water use
and regulations on water resource management and has management by selecting water-saving devices at the source, 2025 Packaging Material Usage Data
systematically established a full-process management system establishing rainwater storage ponds and reclaimed water reuse
covering water withdrawal, water use, recycling, and discharge. systems to reduce consumption, and enhancing supervision in daily
Indicators Unit Data for 2025
In accordance with the Environmental Policy , the Company operations to promptly address running, bubbling, dripping, and
has clarified water-saving management requirements and leaks so as to improve water use efficiency. To support refined control,
Total tonnes 86,998.54
departmental management responsibilities, promoting water the Company has installed metering instruments and implemented
resource management from the top-level design. daily monitoring records and a monthly analysis mechanism to
ensure the traceability of water use and manage water use conditions Metal (Aluminum Alloy Packaging Boxes) tonnes 78,893.04
in a data-driven manner. In 2025, all bases actively implemented the
Company's requirements for the "four-meter monitoring" initiative.
Water-saving target
Relying on the warning function of the new energy management Plastic (Plastic Sheets) tonnes 293.47
platform, they realized software warnings and closed-loop disposal
Packaging material usage
through threshold settings for water use branch lines, effectively
Taking 2022 as the baseline year Composite materials (Plywood) tonnes 3,669.69
resolving leakage issues on the pipeline. Among them, Transmission
SOTE has cumulatively identified 22 water use abnormalities and,
by 2030 water consumption per unit of product together with administration, completed repairs of 20 water leakage
Paper (Pulp Boards) tonnes 1,769.91
will be reduced by points; Huzhou Equipment used acoustic leak detection technology
to investigate leaks and found 12 leaks in the northern plant area,
saving an average of RMB 50,000 in water charges per month after Others tonnes 2,372.43
repairs; the Kunshan base identified 1 water leak point, reducing
seepage by an average of 600 tonnes per month.
During the reporting period, SANY Heavy Industry did not record
any issues in seeking access to applicable water sources.
Indicator Unit Data for 2025
Water resource usage Municipal water supply tonnes 3,946,162.73
< 74 75 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Green Industrial Parks Green Office Initiatives in 2025
In the practice of environmental management and sustainable development, the Company has always taken "green, low-carbon Paperless Office and Resource Efficiency Energy Conservation Retrofitting and Equipment Upgrades
initiatives" as its core orientation and, driven by the dual engines of "digitalization empowerment" and "initiatives in practice," has
built an environmentally friendly system covering all operational scenarios across its industrial parks.
With the goal of "integrating green lifestyles into all operational Clean energy use: strengthen the application of clean energy
scenarios," the Company comprehensively practices its in the production area and office areas.
In 2025, four subsidiaries of SANY Heavy Industry—Hunan SANY Medium culture of environmental protection by promoting paperless
Lifting Machinery Co., Ltd., SANY Heavy Machinery (Chongqing) Co., Ltd., office and shared workstations; implementing time-based Integration of energy-saving equipment and digitalization
SANY Heavy Machinery Co., Ltd., and SANY Special Vehicle Co., Ltd.—were lighting controls in public areas and dynamically adjusting air- deployment: We integrated 18 categories of energy-saving
certified as provincial-level "Green Factories", bringing the cumulative total conditioning temperatures according to ambient temperature; equipment, including dishwasher heat recovery systems,
to seven certified "Green Factory" entities. and launching "Clean Plate Campaign" to eliminate food waste. solar light strips, and stove retrofits (covering 33 industrial
parks). After integration, the total power consumption of the
equipment decreased by 11% (with average daily total power
Green Office Monitoring Optimization and Inspection-Based consumption dropping from 34,920 kWh to 30,772 kWh, a
reduction of 4,148 kWh). At the same time, we deployed
Corrective Actions
digitalization equipment such as solar street lamps, LED
energy-saving lamps, sound-activated lights, and smart meters
SANY Heavy Industry adheres to green living and production, has formulated the Non-Production Area Energy Consumption Management to enable precise control of energy use.
System , clarified the regulatory requirements and responsibility boundaries for energy and resource management in non-production Energy use monitoring and inspection-based corrective
areas, and provides institutional safeguards for building a circular economy, reducing the ecological burden, and creating a low-carbon, actions: Through measures such as energy use inspections
(supervising and assessing water, electricity, gas, heating, and
environmentally friendly, and sustainable working and living environment.
wastewater discharge; analyzing abnormal areas; formulating
In 2025, the Company adhered to the principle of "full-scenario coverage and multidimensional efforts" in its energy conservation and control measures; and assigning responsibility for corrective
actions), silent screening, grid inspections, and enclosed office
emission reduction practices, with integrating green production and lifestyle into operations as the core, building an emission reduction
areas, we cumulatively identified and rectified 2,036 issues in 2025.
system with clear layers and effective implementation ranging from day-to-day conservation details and hardware upgrades and
optimization to intelligent control and monitoring, thereby driving the coordinated improvement of environmental benefits and operational
efficiency. In 2025, the Company's energy consumption in non-production areas decreased by 14% year-on-year.
Environmental Protection Culture Building
The Company attaches great importance to environmental protection culture building and is systematically promoting it from two
dimensions: management team capability enhancement and company-wide training. For the management team, we invite external
professional energy management institutions to conduct business exchanges, strengthen their professional capabilities, and provide
talent and knowledge support for green operations. In terms of company-wide training, the Company has established a regular, tiered,
and category-based training system and continues to strengthen environmental protection awareness among all employees and
promote green practices through energy conservation training. In 2025, we conducted a total of eight quarterly training sessions on
green energy conservation and emissions reduction, with over 1,832 participants and 100% coverage of personnel in key positions.
Through case studies, interactive discussions, and other engaging formats, the training enhanced employees' understanding of
the importance of energy conservation and emissions reduction, as well as practical implementation pathways. These initiatives
effectively strengthened awareness of green principles and encouraged more proactive participation in green office practices.
In 2025
we conducted a total of over
quarterly training sessions on green energy
conservation and emissions reduction
coverage of personnel in key positions
< 76 77 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Developing a People-
Centered Culture to
Foster First-Class Talent
Adhering to the people-centered philosophy, SANY Heavy
Industry has systematically built a framework of care,
support, and development that covers employees' entire
career lifecycle. On the basis of fully safeguarding employees'
legitimate rights and interests, we provide systematic training
and fair promotion opportunities, and promote employees'
growth together with the enterprise through a rich variety of
cultural and sports activities. At the same time, we continue
to focus on employees' safety and health and are committed
to fostering a positive, healthy, and warm work environment.
Compliant Employment
Talent Development
Employee Benefits
Health and Safety
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Compliant Employment
Employee Performance in 2025 Number of employees by region
In 2025
SANY Heavy Industry places compliant employment in an important position in its corporate development, strictly observes Total number of full-time
national laws and regulations and international labor standards, and adheres to the principle of fair employment. We actively employees
nurture a diverse and inclusive work environment and effectively safeguard employee rights.
Fair Employment
Chinese Employees from Hong Kong, Overseas
SANY Heavy Industry strictly complies with the Labor Law of the People's Republic of China , the Labor Contract Law of the People's mainland Macao and Taiwan of China employees
Republic of China , and other applicable laws and regulations; observes the core conventions of the International Labor Organization;
and continues to advance the implementation of the Code of Ethics and Business Conduct for Employees, so as to safeguard the Number of employees by gender Number of employees by rank
legitimate rights and interests of every employee and prohibit all forms of employment discrimination, forced labor, and child labor. 24,665 21,440
During the recruitment process, the Company has established a dedicated review mechanism to conduct background verification
on candidates and ensure that no child labor or forced labor exists in any form. We prohibit all forms of workplace discrimination,
harassment, and violence, and protect employees' personal information through the issuance of the Data Platform Privacy Policy . At
the same time, the Company clearly stipulates compensation and benefits, working hours and leave, and overtime compensation in its
policies, so as to safeguard employees' legitimate rights and interests in all respects.
In 2025
Senior Middle Junior
Male Female
SANY Heavy Industry's labor contract signing rate was 100%, and the Company had no major labor disputes, strikes, or management management employees
major layoffs in the past three years.
Number of employees by role type Number of employees by age
Diversified Teams 5,720
SANY Heavy Industry attaches great importance to the introduction and cultivation of talent, attracting exceptional talents from
diversified backgrounds to join the Company through multiple channels, including online promotional events, public information
platforms, and offline job fairs. We are committed to fostering an equal and diversified work environment, respecting differences 684 771 830
in gender, ethnic groups, age, nationality, and other aspects, and actively responding to the needs of employees from different
backgrounds.
Production Sales Technical Finance Aged 30 Aged Aged 51
personnel personnel personnel personnel and below 31—50 and above
As of the end of the reporting period Administrative Service Management
personnel personnel personnel
The Company's employees Female employees Women accounted for The Company actively builds a globally integrated human resources management system and, in line with the laws, regulations,
came from more than
and cultural environments of different countries and regions, has systematically prepared and issued the Local Employee Human
Resources Manual covering 26 countries and the Employee Handbook covering 25 countries, providing systematic guidelines for the
of the senior management team standardized management and cultural integration of overseas employees.
While advancing diversified development, the Company continues to conduct systematic analysis of employee turnover and, based
on the results, continuously optimizes the human resources management system. By strengthening employee care, improving training
mechanisms, and implementing targeted incentives, it continually enhances talent retention effectiveness and team cohesion.
< 80 81 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Talent Development
Employee Turnover of SANY Heavy Industry
Employee turnover rate by gender (%) Employee turnover rate by job level (%) SANY Heavy Industry regards talent as a core driver of enterprise development. By building a systematic training system, fair
promotion mechanisms, diversified compensation and benefits, and efficient performance assessments, the Company fully
unlocks employees' potential and supports employees in achieving their individual career development.
Employee Promotion
SANY Heavy Industry adheres to fair and impartial promotion principles, adopts a performance- and capability-oriented approach,
and is committed to providing each employee with a broad development platform and equal promotion opportunities to support the
achievement of their career goals.
Senior Middle Junior The Company has formulated and continuously improved a series of management protocols, including the Management Personnel
Male Female
management management employees
Rank Management System , the Cadre Management System, The Policy of SANY Heavy Industry Career Promotion Channels, the
Promotion Management Standards , and the Provisional Rules for the Talent Development Committee, thereby establishing a talent
development mechanism covering all levels and sequences. In 2025, the Company further promoted the Phase II Talent Management
Employee turnover rate by role type (%) Employee turnover rate by age (%) Transformation project, with a focus on advancing the global deployment of the talent development committee, optimizing succession
planning and the specialist management system, and completing succession review and talent backup for more than 1,100 cadre
SANY Heavy Industry Career Promotion Channels
Management
R&D talents
talents
Production R&D Business management Aged 30 Aged Aged 51
personnel personnel personnel and below 31—50 and above professional professional
leadership leadership
talents talents
Others
director/Business engineer of special
Division CEO grade
chief engineer
Employee turnover rate by region (%) supervisor/general
expert engineer
manager of the dean
senior manager subsidiary
senior engineer
manager departmental
mid-level engineer
supervisor
commissioner
junior engineer
assistant engineer
Chinese Overseas
Employees from
mainland employees
Hong Kong,
Macao and
Taiwan of China
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SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Compensation and Benefits Training and Development
SANY Heavy Industry is committed to establishing a fair, equitable, and market-competitive compensation and benefits incentive SANY Heavy Industry has always regarded employee development as a core pillar supporting the development of the enterprise, and
system and, through diversified incentive methods, fully stimulating employees' enthusiasm and creativity to achieve mutual success continuously improves its training and development system to build a systematic and professional growth platform for employees.
and shared progress for employees and the enterprise. The Company has formulated and implemented a series of foundational management protocols, including the Training Management
System , the Curriculum Development Management Measures , and the Training Points Management Regulations . In 2025, the Company
The Company continues to optimize its compensation incentive mechanisms, building a tiered compensation system covering all optimized and updated the Administrative Measures for Induction Training and the Curriculum Development Management Measures ,
employees and creating a floating incentive model that combines short-term performance incentives plus medium-to-long-term equity and formulated the Administrative Measures for Sponsoring Outstanding Employees for Further Study , providing more comprehensive
binding. Based on job grade and performance assessment results, we differentiate the design of annual performance bonuses and institutional safeguards for employees' career development.
implement medium- to long- term incentive plans equivalent to annual bonuses for key technical positions, core R&D personnel, business
management talents, and core international business personnel. In addition, the Company implements a preferential salary adjustment The Company's training system covers all full-time employees. For part-time employees and contract workers, the Company provides
policy for outstanding graduates from previous years and promotes high-performing heads of frontline production and technology units necessary onboarding training, safety protocols, and skills training based on the nature of their positions, ensuring that they are
to the cadre level, enabling them to enjoy corresponding remuneration packages and further motivating key grassroots personnel. qualified for their roles and comply with the Company's standards. The coverage rate of the training system reached 100%.
Building on the foundation of systematic institutional development, the Company has systematically established a differentiated
development system covering domestic, overseas, and key core positions based on the development needs of critical talents. In
development, professional skills enhancement, and the cultivation of emerging talent, covering more than 13,000 person-times
Adhering to the philosophy of long-termism, SANY Heavy In accordance with the established vesting arrangements, throughout the year and continually enhancing the professional capabilities and leadership capabilities of talent at all levels.
Industry has steadily advanced the employee stock ownership the Company carried out phased vesting of medium- and
plan to share development achievements with employees. long-term incentives granted in previous years,
SANY Heavy Industry's Talent Training System
In 2025, the Company granted a total incentive amount with the cumulative vested amount14 for the year
of approximately reaching
Domestic Training
RMB RMB
to 5,382 employees
Guided by manager appointment and talent assessment, the Company has built a holistic, product-focused training
approach covering business management, R&D, marketing, processes, manufacturing, quality assurance, commerce,
finance, and HR, systematically improving employees' general and specialized skills.
Performance Assessments
Overseas Training
Based on expatriation assessment and follow-up support, the Company provides comprehensive training for five categories
SANY Heavy Industry adheres to the orientation of "high performance, high standards and high demands" and continues to promote of critical talents across dimensions such as basic knowledge training, risk management, language proficiency, and
a dual-dimensional performance management system centered on results and process. The Company has formulated and improved professional development, so as to enhance their overseas business expansion capabilities and front-line operational skills.
the Performance Management System , implemented differentiated assessments by tier and category, established a four-tier standard
for position-based performance bonuses, and innovatively applied the "Dual Flywheel15" assessment approach for management
employees engaged in business management.
Key and Core Position Training
In 2025, the Company optimized the performance management system by setting clear performance targets for all managers and
incorporating ESG-related indicators into the assessments of the management. Their performance achievement directly determines the
Through differentiated development arranged by level domestically and by role overseas, the Company strengthens core
annual appraisal rating and is linked to compensation, effectively advancing the implementation of sustainable development targets.
job skills, understanding of business processes, and cross-cultural leadership capabilities to support strategy execution and
The Company has established a performance management system for employees in different positions and at different levels, and enhance organizational capabilities.
has set tiered standards for annual performance bonuses based on differences in position level and value contributions. At present,
performance assessments cover all employees. In addition, the Company has established special incentive plans for pivotal roles
in domestic business, overseas operations, R&D, commerce, and manufacturing, including incremental profit sharing, innovation 2025 SANY Heavy Industry Employee Training Performance
achievement awards, and cost reduction commissions, so as to fully unleash employees' potential and promote the coordinated
development of organizational strategy and individual performance.
In 2025
Professional skills training courses conducted Number of employees trained Training participation reached
he unlocking has been implemented in accordance with the 50% ratio stipulated in the equity-salary system, excluding the portion not distributed due to
T
employee resignation or personal integrity issues.
Dual Flywheel: The performance appraisal program implemented for management includes the performance flywheel and the long-term capability flywheel.
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SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Employee Benefits
In 2025
Average training hours per employee Percentage of employees trained Training expenditure
SANY Heavy Industry is committed to building a comprehensive and competitive employee benefits system. On the basis of strict
compliance with national laws and regulations and full contribution to the mandatory five social insurance and one housing
RMB fund, the Company continues to enrich non-salary benefits and has formulated the Employee Benefits Management System ,
systematically providing diversified benefits centered on health care and life support to effectively enhance employees' sense of
well-being and organizational identity, strengthen corporate cohesion, and reinforce the driving force for sustainable development.
Number of employees trained by gender Number of employees trained by job level
SANY Heavy Industry Employee Benefits System in 202516
Benefits Category Specific Content
hen major personal events occur, such as birthdays, marriage, childbirth, funerals, or serious illnesses involving the
W
Major life affair
benefits
or condolence payments.
Paid leave on March 1st
each year.
Senior Middle Junior
Male Female In accordance with the Festival Materials Distribution Standards , the Company distributes holiday gifts to employees
management management employees Festival gifts
ahead of traditional festivals such as the Spring Festival, Dragon Boat Festival, and Mid-Autumn Festival.
Number of hours of training per employee by gender Number of hours of training per employee by job level
I n accordance with the High Position Restaurant Dining Management Measures , the Company provides free dining
services to eligible employees and a monthly meal subsidy to all employees each month. It also pays attention to
ethnic minority employees by providing halal food.
he Company provides allowances for business travel and expatriate employees, including overseas allowances,
T
Allowances
expatriate allowances, and travel subsidies.
Senior Middle Junior
Male Female he Company has established emergency channels with multiple hospitals, equipped the industrial parks with AEDs
T
management management employees Health care safeguard
and other devices, and partnered with International SOS to provide global rescue.
Education Degree Support he industrial parks are equipped with nursing rooms and employee lounges. Nap areas, professional work attire,
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Support through
and necessary protective equipment are provided for frontline positions, and convenient facilities such as electric
specialized facilities
To comprehensively enhance employees' professional competence Highlights vehicle charging stations are also available within the industrial parks.
and professionalism, and to align with authoritative professional
Convenient life he Company partners with hundreds of merchants to provide exclusive discounts and assists employees in
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certifications recognized by the industry, the nation, and even
services addressing their children's school enrollment needs.
globally, the Company has formulated and continuously improved the
Professional Certification Management Measures to guide employees In 2025
In accordance with the Employee Housing Management Measures , the Company provides fully furnished employee
in enhancing their professional capabilities through self-directed apartments in multiple locations that are ready for immediate occupancy.
Accommodation and
learning and certification examinations, nurture a learning organization, commuting
Number of new External he Company provides shuttle services for commuting to industrial parks, special vehicles for returning home during
T
and reimburse exam fees for employees who obtain professional the Spring Festival, a platform for business travel transportation, and wedding vehicle services.
certifications added certifications
certifications. This policy applies to all full-time permanent employees.
he Company provides paid parental leave for employees with young children. For children under the age of three,
T
By the end of 2025, about 6,200 employees had external certification- employees are entitled to 5 to 10 days of fully paid parental leave per year, in accordance with the applicable policies
related needs over the preceding three years, among which a total of Family-friendly of their respective regions.
Number of employees To date, the cumulative
achieved their credentials while actively employed by the company, of handling family matters, pilots flexible working hours and part-time work models, regularly organizes parent-child
newly sponsored for number of employees
whom 2,384 received examination fee reimbursement, representing a activities, and helps employees balance work and family.
further study sponsored by the
reimbursement rate of approximately 73%.
Company has reached
In accordance with the Work Clothing Management Measures , the Company provides all employees with free work
Clothing and material
The Company has formulated the Administrative Measures for benefits
attire and custom suits. High-quality necessary protective equipment is regularly distributed to frontline employees,
Sponsoring Outstanding Employees for Further Study to support and a variety of welfare materials are made available for purchase through an internal platform.
outstanding employees in pursuing further studies at higher education
institutions and obtaining higher-level academic degrees, so as to 16
ote: Except for employee housing, which is subject to application based on the employee's work location, all other benefits are available to all employees,
N
enhance job competence and development potential. including full-time staff and long-term outsourced personnel.
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SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Employee Care Employee Communication
SANY Heavy Industry has established a normalized employee care mechanism that includes support for employees in need and SANY Heavy Industry has established a sound system of workers and staff congress and labor unions to effectively uphold workers'
recreational activities, to enhance employees' sense of belonging and organizational cohesion. In 2025, the Company conducted a rights to information, participation, expression, and supervision, while continuously safeguarding employees' rights and interests
cumulative total of 139 employee care initiatives, with a total investment of over RMB 10.59 million. in collective consultation. The Company attaches great importance to communication and exchanges with employees and has
established multiple management protocols, including the Rationalization Proposal Management Standard and the Chairman's
Mailbox Complaint Management System . It has also set up a working team for internal coordinated governance, built a coordination
Support for employees in need platform, and established the Chairman's Mailbox and Drip Mailbox to systematically carry out the management of employee
suggestions and opinions. Meanwhile, the Company has formulated the Suggestion/Complaint Management Measures for Overseas
Employees , further improving the communication mechanism for employees under globalization.
The Company has established a sound employee support mechanism. In 2025, the Company provided assistance to a cumulative total
of 407 employees facing hardship, distributing RMB 550,000 in relief funds to help them address practical difficulties in their daily lives. 2025 Employee Communication Measures
In addition, the company collaborated with internal CPC Party-affiliated public welfare organizations, trade unions, and the Communist
Youth League to establish a one-stop employee services platform, continuously improving the effectiveness and responsiveness of Scope of Coverage Specific Measures
employee support.
Regularly organize employee symposiums, continuously operate online platforms such as the
Featured cultural activities "Voice Community," respond promptly to employee needs through multiple channels, and
safeguard employees' legitimate rights and interests in accordance with the law.
All employees
In 2025, the Company organized 902 cultural and sports activities in a rich variety of forms throughout the year, covering holiday Conduct monthly service satisfaction questionnaire surveys covering six major modules:
celebrations, parent-child activities, cultural and sports competitions, free traditional Chinese medicine consultations, employee dining, accommodation, office environment, shuttle services, administrative digital systems,
wedding banquets, and singles networking events. At the same time, the Company regularly conducted mental health lectures and and administrative activities.
workplace stress management activities to help employees balance work and life. By organizing regular meetings, annual conferences, cultural workshops, and other activities,
the Company systematically carries out cross-cultural communication and team building to
Overseas business
Case? ? "Little Migratory Birds" Employee Parent-Child Activity promote understanding, mutual trust, and efficient collaboration among employees from
different cultural backgrounds globally.
In 2025, the Company organized the "Little Migratory Birds" parent-
child activity for employees, a program that brought together a SANY Heavy Industry attaches great importance to employees' experience and perceptions in both work and life. Each year,
Peking University alumni experience-sharing session with a series the Company conducts a comprehensive survey centered on employees' service experience, covering four major modules:
of hands-on social practice activities. Through role-model guidance accommodation, dining, office environment, and security and access, with the aim of providing employees with higher-quality and
and interactive experiences, the initiative broadened the horizons more people-oriented service support. In 2025, the overall score for the employee service satisfaction assessment was 95.75. This
of employees' children, enriched their summer lives, and reflected survey adopted a multi-dimensional coverage mechanism, collecting over 60,00017 valid evaluations and achieving full coverage of all
the company's genuine care and support for the families and next- current employees.
generation development of its workforce.
Group photo from the 2025 "Little Migratory Birds"
Employee Parent-Child Activity
Case? ? Employee Sports League
The Company hosted an employee sports league featuring a range
of competitive events including basketball and tug-of-war. The
league drew enthusiastic participation from 18 teams and hundreds
of employees across the group's various business divisions,
functional headquarters, and subsidiaries. Through the spirit of
athletic competition, the event strengthened team cohesion and
fostered a healthy, vibrant, and positive corporate culture.
Group photo from the 2025 Employee Sports League
The company conducts multiple questionnaire surveys throughout the year.
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SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Health and Safety
Health and Safety Targets and Performance
Indicator Targets Target Performance
Thousand-person injury rate19 ＜ 1.53‰ 1.33‰
SANY Heavy Industry consistently adheres to the occupational health and safety policy of putting people first, putting prevention
first, prioritizes the health and safety of employees, suppliers, and other stakeholders, and, through systematic initiatives such Completion rate of three-level safety education training 100% 100%
as strengthening safety risk management, improving the health monitoring mechanism, providing adequate safety protection
equipment, and enhancing safety training and education, comprehensively builds and continues to optimize the occupational The number of occupational disease cases / 0
health and safety management system, thereby laying a solid safety foundation for the Company's sustainable operations.
Occupational health examination compliance / 100%
Health and Safety Management Health and Safety Performance in 2023-2025
Unit 2023 2024 2025
SANY Heavy Industry strictly complies with the Law of the People's Republic of China on Work Safety and other relevant laws, regulations,
and international conventions, and has established a health and safety management system centered on the HSE Management Manual , the Occupational health and safety incidents case 32 69 37
HSE 18 Reward and Punishment System, and the Occupational Disease Prevention and Control Management System. This system and related
Occupational health and safety incident rate % 0.12 0.29 0.13
management protocols and policies cover all of the Company's operational scope and business units, ensuring that all manufacturing bases,
R&D centers, and office locations globally follow unified and standardized health and safety management standards. Occupational disease case 0 0 0
In 2025, the Company revised and issued a series of manuals and management processes covering team safety, necessary protective Thousand-person injury rate ‰ 2 1.78 1.33
equipment, HSE rewards and penalties, and HSE and 6S18 management, comprehensively standardizing the management of special
equipment, confined space operations, and on-site production standards, and systematically enhancing safety levels in work areas SANY Heavy Industry has established a systematic safety risk management system. In accordance with the Safety Risk Identification
and capabilities in risk prevention. and Graded Control System , the Company has built an organizational structure centered on the safety leadership team, clarifying the
rating standards and control requirements from low risks to major risks, with a focus on strengthening the identification, assessment,
Highlights and dynamic control of major risks. By implementing a whole-process management mechanism covering hazard identifications,
risk assessments and control, graded risk management, and risk visualization, the Company continuously strengthens its capacity to
prevent production safety risks.
In 2025
Hazard Identifications Risk Assessment and Control
Among SANY Heavy Industry's 22 main machine and parts Representing a certification coverage se the Risk Matrix Method (L·S) or Job Condition Risk
U
manufacturing subsidiaries, a total of rate of
Analysis Method (LECD) and other tools to assess the
Define the objects and scope of assessment, and collect
identified risks;
the relevant technical data;
Based on the principles of feasibility, safety, and reliability,
Identify and analyze major hazards and harmful factors,
passed external reviews and obtained the ISO 45001 occupational formulate and implement risk management strategies such
and determine their specific locations and manifestations.
health and safety management system certification as engineering and technical measures and management
measures.
In addition, nine businesses, including Ningxiang Heavy Lifting, Huzhou Heavy Lifting, SOTE Drive, Huzhou Loader,
Zhongxing, Shaoyang Commercial Vehicle, Lingang Heavy Machinery, and Kunshan Heavy Machinery, passed the annual Safety Risk
third-party surveillance audits for ISO 45001/14001. Management Process
Risk Visualization Graded Risk Management
Use different colors on the plant layout to mark the risk C lassify safety risks into four levels from high to low,
The Company has established a health and safety governance structure with clearly defined powers and responsibilities. The level of each grid, forming a color-coded safety map; establish graded control files, and designate responsible
Sustainability Committee under the Board is responsible for overseeing the overall H&S strategy and performance, the general manager In conjunction with the emergency evacuation map, clearly persons;
assumes ultimate management responsibility, and the intelligent manufacturing management department (with HSE functions) has mark escape routes and emergency assembly points to Prepare and dynamically update a graded management
been designated as the dedicated execution body responsible for the implementation and supervision of daily management. improve emergency responses and evacuation efficiency. list covering all risk points.
To ensure the effective implementation of the above strategy, the Company has systematically established a management system
for health and safety performance objectives. This system covers key indicators such as the thousand-person injury rate and the
In stakeholder safety management, the Company has established the Stakeholder Safety Management System to regulate the conduct
incidence rate of occupational diseases, and also incorporates contractors' performance. Coordinated by the Intelligent Manufacturing
of stakeholders within the Company's operating areas. By signing the 5S+ Safety Management Agreement , stakeholders are required
Headquarters-HSE Management Office, the system is implemented on the front line of operations by the HSE offices of each business
to comply with health, safety, and environmental standards in order to reduce potential risks during operations. The Company
unit. Performance results are directly linked to the compensation of responsible persons at all levels, including senior executives, and
implements whole-process safety management for stakeholders, including pre-entry basic safety training, regular inspections and
accountability is further strengthened through a regular review mechanism.
hazard identifications by business units, on-site supervision of high-risk operations, and regular safety coordination meetings. In
addition, the Company has innovatively applied a digital information platform to record and track stakeholders' safety data throughout
the entire process, thereby systematically managing the safety risks of the supply chain.
HSE Management System: Refer to Section 3.2 Environmental Management in Chapter 3 of this report.
housand-Person Injury Rate (‰ ): Calculated as (Number of work-related injury cases / Total number of employees) × 1,000. The number of work-related injury
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cases refers to the sum of minor injuries, severe injuries, and fatalities caused by work.
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SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Stakeholder Health and Safety Assurance Measures Occupational Health and Safety Assurance Measures
E
nsure that all short-term contract workers, temporary staff, and interns sign employment contracts and
complete tiered safety training; Occupational Disease Prevention
Employees
Personnel engaged in specialized tasks and operators of special equipment must hold valid appropriate
certifications before onboarding. For new, altered, or expanded projects, the Company strictly implements the occupational health "simultaneous
consideration20" protocols and carries out the design, assessment, and acceptance of occupational disease protection
facilities.
R
equire suppliers to provide safety education to their operational personnel and provide necessary
labor protection supplies;
Suppliers Standard Operational Protocols
larify suppliers' safety responsibilities and enter into the 5S+ Safety Management Agreement and
C
Assessment Rules , with a signing rate of 100%.
Employees are required to strictly observe labor discipline, safety regulations, and safety operating procedures.
Health and Safety Risk Assessments
Conduct qualification reviews to ensure that certified operators for specialized tasks and equipment are
mandatory;
Project
Contractors Risk assessments are conducted by trained specialized teams, with employees or their representatives participating in
Require strict compliance with the Company's safety, environmental protection, and fire safety protocols,
and participation in corresponding health and safety training. the assessment process, and it is explicitly stipulated that employees have the right to refuse work that endangers life or
health.
Provision of a Safe Environment
Verify all necessary qualifications;
Leasing Units
Inform them of potential hazards on the leased premises and the Company's safety, environmental
The Company provides employees with a healthy and safe workplace and living environment, ensuring that drinking
protection, and fire safety management protocols.
water, sanitation, fire protection, lighting, and ventilation at the workplace meet legal standards, and continuously
reducing environmental risks on the basis of compliance.
Permanent Incorporate them into the Company's unified safety management system and regularly carry out safety Safety Equipment Provision
Stakeholders education and periodic safety audits.
Based on job characteristics and working conditions, the Company provides employees with labor protection supplies
that meet national standards.
Official/
The corresponding reception department is responsible for providing safety briefings and necessary
Government Health Screenings
training.
Personnel
The Company regularly organizes health screenings, provides employees exposed to occupational hazards with
occupational health examinations before, during, and after employment, and establishes individual health records for
each person.
Occupational Health
Psychological Support
SANY Heavy Industry has established a comprehensive occupational health safeguard system covering occupational disease prevention,
standardized operations, risk identifications, safe workplace development, labor protection, and health surveillance, effectively
preventing occupational health risks. In 2025, all affiliated businesses strictly complied with the Law of the People's Republic of China The Company implements the Employee Assistance Program (EAP) and engages specialized institutions to provide
on Prevention and Control of Occupational Diseases and the Provisions on Occupational Health Management in the Workplace , carried employees with psychological consultation and counseling services.
out monitoring of occupational hazards, and arranged for employees in frontline positions exposed to occupational hazards to undergo
occupational health examinations before onboarding, during employment, and upon departure in accordance with regulations.
Throughout the year, no excessive occupational hazards or occupational contraindications were identified. Meanwhile, the Company also
paid close attention to employees' mental health by providing free psychological support to all employees, helping them properly cope
with pressures and emotional challenges in work and life, and comprehensively safeguarding employees' physical and mental health. 20
Three Simultaneities: Occupational health protection measures shall be designed, constructed, and put into production and use simultaneously.
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SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Safety Culture Development Safety Training
In 2025, the Company continued to optimize its safety training system and carried out health and safety training in various forms,
SANY Heavy Industry regards employees' safety awareness and skills as the core process for safeguarding safe production, continually
including three-level safety training, HSE special training, pre-shift safety meetings, safety training on the "Four New" (new processes,
improves its training system, and continually enhances the entire workforce's safety competence and risk prevention capabilities
technologies, equipment, and materials), and safety training for work resumption and job transfer. During the year, it organized
through a combination of assessment and incentive mechanisms, thereby effectively strengthening the defense for safe production.
the Company organized work safety responsibility exams, reaching 25,000 participants, with a passing rate of 100%; all personnel who
Emergency Drills did not pass were arranged for retraining and supplementary exams until they qualified.
In accordance with the Emergency Preparedness and Response Management System , the Company has systematically established
an emergency management mechanism covering risk identifications, territorial management, integrated coordination, and dynamic
management. In light of different types of accidents and the characteristics of various workplaces, the Company has formulated
corresponding special emergency plans and on-site response plans to ensure that emergency responses are scientific and efficient.
Internal External
At the same time, the Company continues to strengthen emergency supply reserves and building teams, and regularly organizes
emergency drills, including one comprehensive plan drill and one special drill each year, as well as one on-site response plan drill
every six months, effectively enhancing the emergency capabilities of all employees and preventing, mitigating, and controlling the
harm caused by unexpected incidents to the greatest extent possible. Onboarding Training Certification Training
All employees must complete no less than 4 hours of Relying on the HSE digital platform, the Company has
Case? ? Fire Emergency Evacuation Drill onboarding safety special training and pass an exam. established and dynamically maintained a certification
Three-Level Safety Training list to ensure that 100% of relevant personnel
complete external training and obtain certification.
Across the Company, workshop, and team training
In 2025, SANY Heavy Industry actively carried out themed safety awareness levels, safety education totaling no less than 24 hours Expert Training
initiatives such as "Work Safety Month" and "Fire Safety Day," while organizing was carried out. External experts, including local administrative law
extensive emergency drills across its business units. Among them, SANY Pump enforcement departments and members of safety
On-The-Job Safety Training
& Road Machinery Lianyuan Company conducted a fire emergency evacuation expert pools, are invited to carry out safety and
drill that simulated real-life fire scenarios, systematically testing the effectiveness Annual safety training plans are formulated, and
health topic training in diverse forms and with rich
of emergency response plans, the responsiveness of emergency teams, and theme training is conducted every month, covering
content.
employees' evacuation and self-rescue capabilities. Throughout the year, the mechanical injuries, electrical safety, confined
Company conducted a total of 44 emergency drills for various safety incidents. spaces, fire prevention, occupational health, and
These initiatives not only enhanced employees' emergency preparedness On-Site Fire Emergency Evacuation other topics.
and safety awareness, but also received recognition from local government Drill at Hunan Sanyi Huayuan
authorities. Machinery Co., Ltd. in 2025
Case? ? "Work Safety Month" Campaign
s the statistical criteria were adjusted and training implementation efforts were intensified this year, the relevant data has changed significantly compared to
A
During the 24th National "Work Safety Month," the Chairman personally directed previous years.
and deployed the initiative, with the requirements of "enhanced planning, high-
standard execution, and comprehensive coverage." All 35 industrial parks across the
Group actively responded to the national call and organized a themed campaign —
"Everyone Talks Safety, Everyone Knows Emergency Response: Identifying Safety
Hazards Around Us." A series of activities covering the entire value chain were carried
out, including diversified training sessions, emergency drills, and safety awareness
programs. A total of 107 sub-venues nationwide simultaneously launched the"Safety "Work Safety Month" Campaign
Commitment Wall," further strengthening safety awareness among all employees and
reinforcing a solid safety foundation for the Company's high-quality development.
< 94 95 >
Giving Back to Society
to Make First-Class
Contributions
SANY Heavy Industry upholds the philosophy that national
responsibility takes precedence over corporate profits,
proactively assuming responsibility in areas such as
philanthropy, rural revitalization, and social rescue, and
conveying corporate warmth through diversified initiatives to
demonstrate its sense of responsibility.
Philanthropy
Rural Revitalization
Social Rescue
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Philanthropy
We have built a public welfare practices system guided by "scientific public welfare," transforming care into concrete social action The Company actively fulfills its social responsibility and strives to improve the accessibility of primary-level medical care and health
and creating a positive cycle in which the Company and employees jointly promote social harmony and progress. services. In 2025, the Company continued to support the development of an integrated online and offline community health support
system, promoted housing safety renovations for families in need, and funded the construction of community public welfare canteens,
thereby giving back to society in tangible ways through health support, living environments, and basic livelihood protection.
Public Welfare Events Case? ? Establishing a Medical and Elderly Care Service Center for Seniors
SANY Heavy Industry focuses on topics such as green, low-carbon initiatives and community co-development. Through a combination The SANY Foundation's rural revitalization initiative addresses the aging population in Daotong Village by continuously
of cash donations and material donations, it maintains long-term cooperation with professional nonprofit organizations, with a focus advancing an integrated elderly care model that combines "social work + caregiving + smart healthcare." Leveraging the
on promoting flagship projects with broad impact, such as Tinker Education, venture philanthropy, and technical rescue. We have established medical and elderly care service center, the project has created health records for more than 600 elderly residents
established employee volunteer mechanisms and carried out activities such as book donations for education and disability assistance and delivered over 20,000 instances of services throughout the year, including health management and daytime care. To further
through both online and offline platforms, continually enhancing employees' cohesion and the culture of public welfare. In 2025, the enhance elderly care services, the project developed and implemented the Home-Based Elderly Care Service Center Operations
Company further promoted its public welfare initiatives toward diversified, specialized, and international development. Manual and the Village Resident Daily Care Guidelines , forming a systematic and standardized rural elderly care solution.
Highlights
In 2025
The Company donated approximately Total over the years to more than Organized a total of Cumulative total of
RMB 22.36million
to various social welfare and public
RMB 360million 129 5,964
public welfare volunteer hours
interest funds activities
The Company actively carried out ecological initiatives such as afforestation and wetland protection, and promoted daily environmental
Daotong Village Medical and Elderly Care Service Center
protection awareness campaigns such as "low-carbon step donations" and "idle markets." In 2025, the Company continued to organize
parent-child nature education activities such as "SANY Nature Weekend." By integrating the distinctive features of industrial parks in
different regions, it combined environmental protection education with family interaction to expand the impact of public welfare.
Case? ? "Walk Together" Sports Charity Campaign
Volunteer Activities
In September 2025, SANY Heavy Industry joined hands with WeChat Sports to launch the "Walk
Together" sports charity campaign, bringing together 60 running groups nationwide, 3,200 Adhering to the philosophy of "Scientific Public Welfare," SANY Heavy Industry has built the "SANY Public Welfare" digitalized platform
employees, and members of the public to participate and practice a low-carbon philosophy and established a standardized volunteer service system, providing employees with easy access to volunteering. The platform supports
through a healthy lifestyle. During the event, a cumulative total of 300 million steps was employees in registering online, participating in events flexibly, and recording hours of public welfare service, effectively stimulating
donated, which was converted into RMB 30,000 in public welfare funds and fully matched as enthusiasm for participation.
a donation to the red cross society of China's "disaster preparedness, disaster relief, hardship
relief" program. Through concrete actions, the company conveyed the value of green public
welfare and demonstrated its corporate social responsibility.
As of December 31, 2025, the "SANY Public Welfare" platform had 28,658 registered volunteers, established 62
Employees participated During the event, a cumulative total of Converted into volunteer teams, conducted 129 public welfare events in 23 cities nationwide, and recorded a cumulative 11,205.7
hours of volunteer service.
RMB
During the reporting period, our employee volunteer engagements reached 1,860 participant, with beneficiaries
was donated in public welfare funds "Walk Together" Public
Welfare Event reaching 2,926 person.
< 98 99 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Rural Revitalization
SANY Heavy Industry actively responds to the nation’s rural revitalization strategy, focusing on people's livelihood, governance,
talent, and industrial development, and explores effective pathways for public welfare to support sustainable rural development. Industrial Revitalization
We leverage local resource advantages, explore innovative industrial development models, and stimulate rural economic vitality. Through
Cultural Revitalization
targeted measures, we promote industrial transformation and upgrading and provide strong support for sustainable rural development.
Case? ? Supporting Innovation in Ecological Agriculture
SANY Heavy Industry takes cultural revitalization as a key priority. By supporting rural cultural activities, it promotes traditional culture
and enhances the cohesion and creativity of rural communities. At the same time, the Company adheres to the philosophy of sports-
tourism integration, uses sports to empower rural areas, promotes the coordinated development of culture, sports, and tourism,
SANY Heavy Industry's rural revitalization initiatives advanced ecological agriculture innovation by improving 158 mu
injects new vitality into rural areas, and strengthens cultural confidence.
of abandoned farmland through cultivation methods that use zero chemicals, and successfully delivered high-value
agricultural products such as five-color brown rice and white strawberry varieties. This not only expanded market space,
but also helped more than 40 low-income households achieve steady income growth. The project has cumulatively created
Case? ? Sports-Tourism Integration Supports a New Rural Outlook
the sustainable development of rural industries.
In 2025, SANY Heavy Industry supported the hosting of the "Village Ba" championship finals for the Hunan division at the
Meijiang national scenic area in Lianyuan city, Hunan province, China, blending the excitement of sports with natural
wonders. The event attracted more than 100,000 on-site participants, and online attention across the internet exceeded
Educational Revitalization
cultural confidence. The Company takes educational facilities, teaching staff, and curriculum systems as focal points to build a multidimensional education
support system and promote the extension of high-quality resources to rural areas.
Case? ? Inspiring Children's Engineering Thinking
In 2025, SANY Heavy Industry continued promoting the "Wala Wala explorer education" project and deepened the building of
the engineering enlightenment curriculum system. Throughout the year, the spring and autumn courses and summer camp
attracted a total of 600 teacher applications to offer classes, cumulatively reaching more than 24,700 students. The average
course assessment score reached 9.06, teacher training satisfaction reached 9.30, and the student course completion rate
reached 93.90%, effectively supporting the cultivation of scientific literacy and engineering thinking among rural children.
In 2025
Throughout the year, the spring and autumn
courses and summer camp attracted a total of
teacher applications to offer classes
Cumulatively reaching more than
"Village Ba" championship Children's Engineering Thinking Course Site
< 100 101 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Social Rescue
SANY Heavy Industry actively engages in social rescue initiatives. Leveraging its technology strengths, it has innovatively
developed a "human-machine collaboration" rescue mechanism and seeks to establish a professional and efficient emergency Case? ? Rescue Operations for the Typhoon Disaster in Zhanjiang
rescue system. The Company is participating in the formulation of engineering machinery rescue standards, supports building
teams for grassroots rescue teams, and actively participates in rescue operations for disasters domestically and internationally,
in order to enhance the industry's rescue capabilities and the standardization process. Through these practices, SANY Heavy In October 2025, a typhoon disaster struck Zhanjiang. Immediately after the typhoon passed through, the Company's rescue
Industry's "Engineering Machinery Public Welfare Rescue Response" Project was honored with the title of "Annual Standout team rushed to the site at the earliest possible moment and, relying on professional equipment, carried out road clearance,
Project" at the 2025 charity gala of China Philanthropist . power emergency repairs, and other tasks, while coordinating with multiple parties to build an efficient collaboration network.
In recognition of the rapid response and remarkable results, the team received a letter of appreciation from the CPC Zhanjiang
Highlights municipal committee and the office of the Guangdong provincial headquarters for flood, drought, and typhoon control.
In 2025
SANY Heavy Industry's annual length of Engineering machinery Participant
disaster response operations totaled mobilized deployments
Case? ? Actively Organizing Flood Relief
During the 2025 flood season, in the face of flooding disasters across
east China, north China, and northeast China, we responded swiftly
and, in coordination with the local government and China Aneng Rescue Site for the Zhanjiang Typhoon Letters of Appreciation From the "CPC Zhanjiang Municipal Committee" and the "Office
of the Guangdong Provincial Headquarters for Flood, Drought, and Typhoon Control"
group, dispatched five team members and five units of equipment
to participate in emergency rescue operations, completing desilting,
supply transport, and resident evacuation tasks, and assisting
in the evacuation of 35 people. After the disaster, we went to
Case? ? Providing Emergency Assistance for the Fire in Tai Po, Hong Kong
Fengjiayu town, Miyun district, to carry out epidemic prevention
and disinfection work, covering an area of more than 8,000 square
meters. The operation received letters of appreciation from partners
In November 2025, following a fire in a public housing estate in Tai Po, New Territories, Hong Kong, the Company swiftly
and commemorative banners from the local government.
activated its global disaster response mechanism. Through the SANY Foundation, we promptly donated Hong KongD 10
million to support emergency relief, medical treatment for the injured, and post-disaster reconstruction. At the same time,
we mobilized energy storage equipment from our Hong Kong operations to support temporary shelters, ensuring a stable
emergency power supply. Through these actions, we demonstrated our deep concern for affected communities and our
strong sense of social responsibility and rapid response capability.
Letter of Appreciation and Commemorative Banner Flood Relief Rescue Site
Rescue Site for the Tai Po Fire in Hong Kong
< 102 103 >
SANY Heavy Industry Co., Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society
Governance First-Class Products Class Practice First-Class Talent Contributions
Case? ? Providing Emergency Assistance to the Earthquake-Stricken Areas in Myanmar, Case? ? Providing Emergency Assistance for Flood Relief in Indonesia, Demonstrating China's Strength
Demonstrating Humanitarian Care
In 2025, a magnitude 7.9 earthquake struck Mandalay, Myanmar. SANY Heavy Industry responded swiftly by dispatching In November 2025, severe flooding struck North Sumatra, Indonesia. SANY swiftly mobilized 13 units of equipment to support
professional rescue teams and equipment to the epicenter, carrying out critical operations including debris clearance, road emergency response efforts. The rescue team worked continuously for more than two weeks, carrying out operations across 21
restoration, and temporary resettlement support. The response was recognized by more than 20 domestic and international villages and completing critical tasks such as river dredging and widening, dam repair, and the clearance of public infrastructure.
media outlets, including CCTV, and received commendation from the Chinese Embassy in Myanmar, demonstrating the These efforts directly benefited 541,693 people and helped ensure the accessibility of vital transport routes. The operation
Company’s professional rescue capabilities and strong humanitarian commitment. was covered by nearly 30 international media outlets, generating approximately 4.5 million impressions. It received strong
recognition from local authorities and the Red Cross, further enhancing the company’s global brand influence and public trust.
On-Site Earthquake Rescue Operations in Myanmar
SANY Heavy Industry's Flood Relief Operations in Indonesia
Letter of Appreciation From the Chinese Embassy in Myanmar
< 104 105 >
SANY Heavy Industry Co., Ltd.
Quantitative Performance Table
Quantitative Performance Table Indicator Unit 2025 2024
total energy consumption tce 108,461.82 101,035.83
Environmental22
comprehensive energy consumption density tce / RMB 1,000,000 1.21 1.30
Municipal water supply volume tonnes 3,946,162.73 3,103,037.00
Municipal water supply volume density tonnes / RMB1,000,000 44.2 39.9
Indicator Unit 2025 2024
GHG emissions
ISO 14001 environmental management system
% 54.50 54.50
certification coverage rate
Scope 1: Direct GHG emissions tCO2e 76,112.84 69,757.62
of major environmental pollution incidents / 0 0
Scope 2: Indirect GHG emissions tCO2e 268,893.36 254,371.88
Air pollutants
Scope 3: Other Indirect GHG emissions tCO2e 60,005.99 /
Total waste gas emissions cubic meter 18,417,283,923.48 14,044,956,884.64
?Category 3 – Fuel- and Energy-Related Activities tCO2e 51,742.15 /
SO2 emissions tonnes 2.44 2.10
?Category 7 – Employee Commuting tCO2e 8,263.84 /
NOx emissions tonnes 39.60 33.28
Total GHG emissions (Scope 1 + Scope 2) tCO2e 345,006.20 324,129.50
VOCs (volatile organic compounds) emissions tonnes 145.20 114.66
GHG emissions intensity (Scope 1 + Scope 2) tCO2e / RMB million 3.87 4.17
Total soot emissions tonnes 83.52 89.10
Packaging material consumption
Water pollutants
Packaging material usage tonnes 86,998.54 58,690.80
Total water discharge tonnes 507,953.48 405,179.10
Packaging material usage density tonnes / RMB million 1.0 0.8
Biochemical oxygen demand (BOD) kg 5,293.52 4,681.51
Social
Chemical oxygen demand (COD) kg 35,892.56 27,149.82
Suspended solids (SS) kg 8,941.17 6,970.66
Ammonia nitrogen (NH3) kg 4,545.77 3,793.42
Indicator Unit 2025 2024
Solid waste
Employee overview
Total hazardous waste discharge kg 5,904,310.00 5,123,021.10
Total number of employees person 28,469 23,832
Total general industrial solid waste discharge tonnes 256,734.58 156,955.45
Number of employees by gender
comprehensive hazardous waste discharge
kg / RMB 1,000,000 66.17 65.87 Male person 24,665 20,731
density
Female person 3,804 3,101
comprehensive general industrial solid waste
tonnes / RMB 1,000,000 2.88 2.02
density
Number of employees by job level
Energy/resource consumption Senior management person 224 203
Purchased electricity kWh 506,772,250.19 474,043,760.50 Middle management person 6,805 12,270
Gas cubic meter 33,255,165.20 31,045,971.00 Junior employees person 21,440 11,359
Gasoline Liter 4,582.00 3,450.00 Number of employees by role type
Clean energy (photovoltaic power generation) kWh 77,365,601.75 76,072,306.10 Production personnel person 9,395 9,125
Diesel Liter 1,598,820.94 998,699.00 Sales personnel person 8,851 5,210
Technical personnel person 5,720 5,867
Finance personnel person 684 523
Administrative personnel person 771 524
This report updates certain 2024 data mainly due to adjustments to the statistical scope and data corrections.
< 106 107 >
SANY Heavy Industry Co., Ltd.
Quantitative Performance Table
Indicator Unit 2025 2024 Indicator Unit 2025 2024
Service personnel person 830 576 Development and training
Management personnel person 2,218 2,007 Number of employees trained person 26,932 27,658
Number of employees by age Number of employees trained by gender
Aged 30 and below person 7,750 5,838 Male person 23,334 24,213
Aged 31—50 person 19,390 17,041 Female person 3,598 3,445
Aged 51 and above person 1,329 1,004 Number of employees trained by job level
Number of employees by region
Senior management person 220 227
Chinese mainland person 21,890 19,149
Middle management person 6,437 14,407
Employees from Hong Kong, Macao and Taiwan of China person 4 3
Junior employees person 20,275 13,024
Overseas employees person 6,575 4,580
Number of hours of training per employee hour 140.56 147.00
Representation percentage of women in the executive team % 14.3 12
Number of hours of training per employee by gender
Employee turnover rate
Male hour 140.20 119.00
Employee turnover rate by gender
Female hour 142.85 117.00
Male % 7.25 /
Number of hours of training per employee by job level
Female % 9.04 /
Senior management hour 120.50 78.00
Employee turnover rate by job level
Middle management hour 145.30 135.00
Senior management % 5.36 /
Junior employees hour 139.25 117.00
Middle management % 8.52 /
Health and safety
Junior employees % 7.19 /
ISO 45001 occupational health and safety management system certification
Employee turnover rate by employee type % 45.45 45.45
coverage
Production personnel % 4.56 / Number of occupational health and safety incidents / 37 69
R&D personnel % 12.62 /
Occupational health check-up coverage rate for job positions % 100 100
Business management personnel % 13.66 /
Number of cumulative participants in health and safety training person 486,516 176,441
Others % 6.11 /
Total health and safety training hours hour 876,438 187,076
Employee turnover rate by age
Supply chain management
Aged 30 and below % 10.81 /
Total number of suppliers / 5,875 3,901
Aged 31-50 % 6.46 /
Number of suppliers by region
Aged 51 and above % 3.24 /
Chinese mainland / 5,838 /
Employee turnover rate by region
Hong Kong, Macao, and Taiwan of China / 4 /
Chinese mainland % 8.53 /
Overseas regions / 33 /
Employees from Hong Kong, Macao, and Taiwan of China % 0.00 /
Number of suppliers by procurement category
Overseas % 4.03 /
Number of production suppliers (procurement of raw and auxiliary materials) / 2,679 1,831
< 108 109 >
SANY Heavy Industry Co., Ltd.
SSE Guidelines Index
Indicator
Number of non-production suppliers (project procurement)
Unit
/
SSE Guidelines Index
Production suppliers by category23
Dimension Number Topic Chapter Index
Number of suppliers of general products / 1,280 978
Number of suppliers of specialized products / 1,979 1,247
Quality management
ISO 9001 or IATF 16949 quality management system certification coverage % 100 100
Research and development (R&D) innovation
Environment
Investment in research and development (R&D) innovation RMB 100 million 51.69 54.88
Number of patent applications during the year / 596 1,047
Number of invention patents filed in the year / 303 623
Number of patents granted during the year / 820 691 3.3 Ecological protection
Total number of patents granted domestically and internationally / 9,517 8,977
Product and services
Customer satisfaction % 93.0 87.8 5.3 Social rescue
Number of complaints for products and services / 1,052 810 11 Innovation-driven 2.1 Innovation-driven development
Complaint resolution rate for products and services % 98.4 100 As the Company's business does not involve scientific research,
technology development, or other activities in technology
Social welfare 12 Ethics of science and technology
ethics-sensitive fields such as life sciences and AI, the Company
did not respond to this material topic.
Investment in public welfare RMB 10,000 2,236 1,816
Society 13 Supply chain security 2.3 Sustainable supply chain
Equal treatment to small and medium-sized
Governance
enterprises
Indicator Unit 2025 2024 16 Data security and customer privacy protection 2.2 Superior quality
Number of risk management training sessions / 33 29 4.1 Compliant employment
Number of participants in risk management training / 2,046 1,944 4.3 Employee benefits
Number of participants in integrity and compliance exams per thousand people 3 3
Number of participants in anti-corruption training per thousand people 3 3 1.3 Business ethics
Sustainablity-
Percentage of directors trained in business ethics and anti-corruption % 100 100 19 Communications with stakeholders Communications with stakeholders
related
governance
Percentage of management trained in business ethics and anti-corruption % 100 100 20 Anti-commercial bribery and anti-corruption 1.3 Business ethics
Percentage of general employees trained in business ethics and anti-corruption % 100 100 21 Anti-unfair competition 1.3 Business ethics
Signing rate of supplier integrity cooperation agreements/undertakings % 100 100
There may be overlaps in the number of production suppliers across different categories. Therefore, the total number of production suppliers is not equal to the
sum of production suppliers counted by category.
< 110 111 >
SANY Heavy Industry Co., Ltd.
HKEX Guidelines Index
HKEX Guidelines Index Indicators
B. Social
Details Section Index
Aspect B1: Employment
Indicators Details Section Index Information on:
(a) the policies; and
Board statement Board statement General
(b) compliance with relevant laws and regulations that have a significant impact on the issuer 4.1 Compliant employment
disclosure?
Materiality About this report relating to compensation and dismissal, recruitment and promotion, working hours, rest
periods, equal opportunity, diversity, anti-discrimination, and other benefits and welfare
Mandatory Quantitative About this report
Total workforce by gender, employment type (for example, full- or part-time), age group and
disclosure B1.1? 4.1 Compliant employment
Balance About this report geographical region
Consistency About this report B1.2? Employee turnover rate by gender, age group and geographical region 4.1 Compliant employment
Reporting scope About this report Aspect B2: Health and Safety
A. Environmental Information on:
(a) the policies; and
Aspect A1: Emissions General
(b) compliance with relevant laws and regulations that have a significant impact on the issuer 4.4 Health and safety
disclosure?
Information on: relating to providing a safe working environment and protecting employees from occupational
(a) the policies; and hazards
General
(b) compliance with relevant laws and regulations that have a significant impact on the issuer 3.3 Ecological protection Number and rate of work-related fatalities occurred in each of the past three years including the
disclosure? B2.1? 4.4 Health and safety
relating to air emissions, discharges into water and land, and generation of hazardous and non- reporting year
hazardous waste
B2.2? Lost days due to work injury 4.4 Health and safety
A1.1?? The types of emissions and respective emissions data 3.3 Ecological protection
Description of occupational health and safety measures adopted, and how they are
Total hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g. per unit of B2.3? 4.4 Health and safety
A1.3? 3.3 Ecological protection implemented and monitored
production volume, per facility)
Aspect B3: Development and Training
Total non-hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g. per unit
A1.4? 3.3 Ecological protection General Policies on improving employees' knowledge and skills for discharging duties at work.
of production volume, per facility) 4.2 Talent development
disclosure? Description of training activities
A1.5? Description of emission target(s) set and steps taken to achieve them 3.3 Ecological protection
The percentage of employees trained by gender and employee category (e.g. senior
B3.1? 4.2 Talent development
Description of how hazardous and non-hazardous wastes are handled, and a description of management, middle management)
A1.6? 3.3 Ecological protection
reduction target(s) set and steps taken to achieve them
B3.2? The average training hours completed per employee by gender and employee category 4.2 Talent development
Aspect A2: Use of Resources
Aspect B4: Labor Standards
General
Policies on the efficient use of resources, including energy, water and other raw materials 3.4 Green development Information on:
disclosure?
General (a) the policies; and
Direct and/or indirect energy consumption by type (e.g. electricity, gas or oil) in total (kWh disclosure? (b) compliance with relevant laws and regulations that have a significant impact on the issuer
A2.1? 3.4 Green development relating to preventing child and forced labor
in '000s) and intensity (e.g. per unit of production volume, per facility)
A2.2? Water consumption in total and intensity (e.g. per unit of production volume, per facility) 3.4 Green development B4.1? Description of measures to review employment practices to avoid child and forced labor 4.1 Compliant employment
A2.3? Description of energy use efficiency target(s) set and steps taken to achieve them 3.4 Green development B4.2? Description of steps taken to eliminate such practices when discovered 4.1 Compliant employment
Description of whether there is any issue in sourcing water that is fit for purpose, water efficiency Aspect B5: Supply Chain Management
A2.4? 3.4 Green development
target(s) set and steps taken to achieve them
Total packaging material used for finished products (in tonnes) and, if applicable, with reference General 2.3 Sustainable supply
A2.5? 3.4 Green development Policies on managing environmental and social risks of the supply chain
to per unit produced disclosure? chain
Aspect A3: The Environment and Natural Resources
B5.1? Number of suppliers by geographical region
General management
Policies on minimising the issuer's significant impacts on the environment and natural resources Description of practices relating to engaging suppliers, number of suppliers where the practices 2.3 Sustainable supply
disclosure? 3.3 Ecological protection B5.2?
are being implemented, and how they are implemented and monitored chain
Description of practices used to identify environmental and social risks along the supply chain, 2.3 Sustainable supply
and how they are implemented and monitored chain
Description of the significant impacts of activities on the environment and natural resources and management
A3.1?
the actions taken to manage them 3.3 Ecological protection Description of practices used to promote environmentally preferable products and services when 2.3 Sustainable supply
B5.4?
< 112 113 >
SANY Heavy Industry Co., Ltd.
GRI Index
Indicators Details Section Index Indicators Details Section Index
Aspect B6: Product Responsibility 3.1 Climate change
Climate resilience
response
Information on: Strategy
(a) the policies; and 3.1 Climate change
General Financial impact of climate-related risks and opportunities
(b) compliance with relevant laws and regulations that have a significant impact on the issuer 2.2 Superior quality response
disclosure?
relating to health and safety, advertising, labelling and privacy matters relating to products and
services provided and methods of redress. Risk 3.1 Climate change
Risk management
Management response
During the reporting period,
B6.1? Percentage of total products sold or shipped subject to recalls for safety and health reasons the Company had no such 3.1 Climate change
Greenhouse gas emissions
incidents response
B6.2? Number of products and service related complaints received and how they are dealt with 2.2 Superior quality 3.1 Climate change
Climate-related transition risks
response
B6.3? Description of practices relating to observing and protecting intellectual property rights 3.1 Climate change
development Climate-related physical risks
response
B6.4? Description of quality assurance process and recall procedures 2.2 Superior quality
Climate-related opportunities
Description of consumer data protection and privacy policies, and how they are implemented response
B6.5? 2.2 Superior quality
and monitored
Capital operation
Aspect B7: Anti-Corruption response
Metrics and
Targets
Information on: 3.1 Climate change
Internal carbon pricing24
General (a) the policies; and response
disclosure? (b) compliance with relevant laws and regulations that have a significant impact on the issuer
relating to bribery, extortion, fraud and money laundering. 3.1 Climate change
Compensation
response
Number of concluded legal cases regarding corrupt practices brought against the issuer or its
B7.1? 1.3 Business ethics 3.1 Climate change
employees during the reporting period and the outcomes of the cases Industry indicators
response
Description of preventive measures and whistle-blowing procedures, and how they are
B7.2? 1.3 Business ethics 3.1 Climate change
implemented and monitored Climate-related goals
response
B7.3? Description of anti-corruption training provided to directors and staff 1.3 Business ethics
Cross-industry indicators and applicability of industry indicators
Aspect B8: Community Investment response
General Policies on community engagement to understand the needs of the communities where the
disclosure? issuer operates and to ensure its activities take into consideration the communities' interests
Focus areas of contribution (e.g. education, environmental concerns, labour needs, health,
B8.1? 5.1 Philanthropy
culture, sport)
B8.2? Resources contributed (e.g. money or time) to the focus area 5.1 Philanthropy
D: Climate-related Disclosures
Governance Governance
response
Climate-related risks and opportunities
response
Business model & value chain
response
Strategy
Strategies and decisions
response
Financial position, financial performance and cash flows
response
The Company currently does not apply an internal carbon pricing mechanism in its decision-making.
< 114 115 >
SANY Heavy Industry Co., Ltd.
GRI Index
GRI Index Indicators Section Index
Indicators Section Index
GRI 102
GRI 201: Economic Performance
Management approach disclosure Sustainability management
GRI 205: Anti-Corruption
GRI 302: Energy
Management approach disclosure 3.4 Green development
< 116 117 >
SANY Heavy Industry Co., Ltd.
GRI Index
Indicators Section Index Indicators Section Index
Operational sites with actual or potential significant adverse impacts on local
communities
Emissions of nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air GRI 416 Customer Health and Safety
emissions
Management approach disclosure 2.2 Superior quality
GRI 306: Effluents and Waste
Management approach disclosure 3.3 Ecological protection
During the reporting period,
incidents.
GRI 307: Environmental Compliance
Management approach disclosure 3.2 Environmental management
GRI 401: Employment
Management approach disclosure 4.1 Compliant employment
GRI 403: Occupational Health and Safety
Management approach disclosure 4.4 Health and safety
Categories of work-related injuries, injury rates, occupational diseases, lost Health and safety, quantitative
workdays, absenteeism, and other related ratios performance table
Workers engaged in occupations with high incidence or high risk of occupational
diseases
GRI 404 Training and Education
Management approach disclosure 4.2 Talent development
GRI 405 Employee Diversity and Equal Opportunity
Management approach disclosure 4.1 Compliant employment
< 118 119 >
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