Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
About the Report
Shenzhen Honor Electronic Co., Ltd. (hereinafter referred to as "Honor Electronic", "the Company", or "We") proactively discloses its sustainability management practices and performance to
stakeholders on an annual basis, thereby fostering mutual understanding, communication and cooperation and enhancing corporate transparency. This report is the second sustainability report
consecutively issued by the Company.
Basis of Preparation Source of Information Report Confirmation
and Approval
This report has been prepared in The content and data disclosed in this This report was reviewed and confirmed by
accordance with the requirements of report are derived from the Company's the Strategic Committee on April 20, 2026,
the Shenzhen Stock Exchange Self- statistical records, official archives, and subsequently approved and released
Regulatory Guidelines No. 17 for Listed financial reports, and publicly available by the Board of Directors.
Companies - Sustainability Report (Trial) documents, and have been reviewed
(the "Guidelines" ) and the Shenzhen internally by the Company. In the
Stock Exchange ChiNext Board Self- event of any discrepancy between the
Regulatory Guide No. 3 - Preparation data disclosed in this report and the
of Sustainability Reports , issued by the Company's 2025 Annual Report, please
Shenzhen Stock Exchange (the "SZSE"), refer to the Annual Report.
and with reference to the United Nations
Sustainable Development Goals (SDGs) and
requirements of the market and customers.
Scope of the Report Reporting Principles Online Access
This report covers Shenzhen Honor This report follows the principles of The electronic version of this report is
Electronic Co., Ltd. (Stock Code: 300870) materiality, quantification, balance, available on the Company's official website
and its subsidiaries, with the reporting and consistency. It responds to (https://en.honoto.com/) or the Shenzhen
scope consistent with that of the Annual stakeholders' concerns, adopts widely Stock Exchange website (https://www.szse.
Report. As the Company's annual ESG recognized ESG disclosure standards, cn/English/index.html).
report, it covers sustainability matters and uses quantitative data to present key
within the Company's scope from 1 indicators, with the aim of objectively
January 2025 to 31 December 2025 (the reflecting the Company's sustainability
"Current Year", "Reporting Year", or performance.
"Reporting Period"), as well as the year
in which this report is published. Certain
content also looks back to previous
years and extends to April 2026. Unless
otherwise stated, all monetary values in
this report are denominated in RMB.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
About Honor Electronic
Shenzhen Honor Electronic Co., Ltd. has been deeply engaged in the power supply sector for three decades, focusing on the
research, development, production, and sales of switching power supply products and striving to provide customers with reliable, Vision Pioneering the Industry, Building a Global Brand
intelligent, high-efficiency, and high-power-density switching power solutions. The Company has mastered industry-leading
core technologies in areas such as R&D and manufacturing processes, and continues to achieve breakthroughs in cutting-edge
technologies and high-end products, maintaining its technological leadership and driving industry innovation. Its major products
To create value for customers, improve employees' quality of life, contribute
include power adapters, data center power systems, and other power supply products, which are widely used in office electronics, Mission
more to society, and generate sustainable returns for shareholders
network communications, security monitoring, smart homes, emerging consumer electronics, data centers, power battery
equipment, pure electric transportation vehicles, and formation and capacity grading equipment.
As a National High-Tech Enterprise, the Company operates the Shenzhen Enterprise Technology Center and the Guangdong Values Pragmatism, integrity and continuous innovation
High-Efficiency Intelligent Power Supply and Power Management Engineering Technology Research Center. Leveraging its
comprehensive strengths, such as superior product quality and rapid-response service capabilities, the Company has established
a strong brand reputation and competitiveness in related fields, earning widespread recognition from many globally renowned
High-end customers, high-end technology, high-end quality, high-end
enterprises. We remain committed to reaching the world through independent innovation, striving to become a globally Core Competitiveness
manufacturing
competitive supplier of power products and solutions, and achieving the development vision of "Pioneering the Industry, Building
a Global Brand."
Development History
Shanghai Honor
Hangzhou Yundian
Electronic was
was established
established
Laid out the consumer
Laid out the data center Dongguan Honor
power supply business 2021.2
and industrial power Electronic was 2023.10
and launched power
supply business and Taiwan Honor established
adapters and PD fast
launched products such Electronic was
chargers
as server power supplies, established
communication power Shenzhen Honor 2019.7
supplies, and network Electronic completed
security power supplies 2017.5 its shareholding
Shenzhen Honor Vietnam Honor reform
Electronic was Electronic was
established 2014.7 Hong Kong Honor established
Electronic was
established
Ganzhou Honor
established
Mexico Honor Electronic
established
Listed on the ChiNext Board of the Shenzhen Stock Exchange
Continued to diversify and expand business boundaries
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Global Operations and Market Presence Product Categories Applications
As a rapidly developing switching power supply enterprise, the Company has optimized its global manufacturing footprint to Power adapters and Office electronics, network
better serve the global market, respond flexibly to changing local demand, and effectively control costs while improving delivery PD fast chargers communications, security
speed. The Company currently operates overseas production bases in Vietnam and Mexico, while its domestic bases are located monitoring, smart homes, emerging
in Shenzhen, Dongguan, Ganzhou, and Suzhou. To further accelerate responses to overseas customers and meet personalized consumer electronics, etc.
customization needs, the Company has also established localized business development teams in Europe and North America
while maintaining its domestic business advantages, ensuring timely on-site support and services for customers.
Data Center Power Supplies
In 2025, revenue from the Company's data center power business Product Categories Applications
amounted to RMB 2.015 billion, which represented a 38.15%
General server Data centers, general
increase year on year. With its contribution to total operating revenue
power supplies and servers, AI servers, liquid-
continuing to increase, revenue from the data center power business
high-power server cooled servers, RAM
has become a key driver of the Company's overall revenue growth.
Ganzhou Production Base power supplies (Random Access Memory)
Suzhou Production Base
Gross floor area£º Among this, revenue from the high-power data center power supply
Gross floor area£º business generated revenue of RMB 1.299 billion, representing a year-
Product Categories Applications
Mexico Production Base
Gross floor area£º on-year increase of 66.52%. Its share of total revenue from the data Network security, 5G base stations, switches,
momentum. Leveraging the Company's forward-looking strategic other power supplies security gateways, and
positioning and strong R&D capabilities, its high-power server power for data centers network monitoring
supply products have achieved a leading position in China and are equipment
Shenzhen R&D Center comparable to international high-end standards. The Company
Gross floor area£º is one of the few power supply vendors in the market capable of
achieving large-scale sales of high-power server power products. The
Company has secured supply agreements with renowned domestic
server system manufacturers, including Inspur Information,
Vietnam Production Base
Gross floor area£º
Foxconn, Huaqin, Lenovo, ZTE, Sugon, and H3C. At the same time,
enterprises and other end customers, and has garnered strong client
Shenzhen Production Base Dongguan Production recognition for its comprehensive capabilities.
Gross floor area£º Base Gross floor area£º
Other Power Supplies
Business Development Total gross floor area of all
R&D Centers Production Bases production bases:
Teams
In addition to its power adapter and data center power supply
Shenzhen, China (Shenzhen, China (Beijing, Hong 201,872 ©O
Product Categories Applications
businesses, the Company maintains its strategic focus on
Hangzhou, Dongguan, Ganzhou, Kong, Taiwan), Total number of production lines for various • Power battery chargers • Lithium battery-powered
Shanghai Suzhou)£¬Vietnam, the United States, the power supply industry and continues to expand into new
product categories as of the end of 2025: • High-power chargers tools and household
for lithium battery-powered tools and home appliances, electric
electric vehicles • Large UAVs, etc.
vehicle chargers, high-wattage power battery equipment
• Charging power supply • Electric bicycles, electric
chargers, as well as formation and capacity grading equipment.
for battery swapping motorcycles, etc.
In the field of lithium battery-powered tools and household
Core Business & Applications cabinets • Battery swapping
appliances, the Company's power battery charger products have
• Formation and capacity cabinets, etc.
become suppliers to industry-leading customers, including TTI and
grading equipment • Formation and capacity
LG.
power supplies grading equipment, etc.
Power Adapters
The Company strategically entered the power adapter business in 2004 and has since built up over 20 years of technical
expertise and industry experience. The Company owns a comprehensive power adapter product portfolio, covering the
power needs of the vast majority of end products, from 3W to 400W. These adapters are widely used across numerous
sectors, including office electronics, network communications, security surveillance, smart home systems, and new
consumer electronic devices. The Company enjoys a strong reputation within the power adapter industry and has
established itself as one of the sector's leading enterprises. It maintains business relationships with numerous renowned
partners, including LG, HP, Honeywell, Roku, Sagemcom, Google, Walmart, Foxconn, Hikvision, and Dahua.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Major Events in 2025 Awards & Recognitions
The new 2025 national standard GB 20943 comprehensively upgrades power efficiency The national standard
requirements, incorporating laptop and server power supplies into mandatory on power supply
management while increasing power limits. This standard aims to promote green industrial energy efficiency,
upgrading and enhance international competitiveness. As one of the core drafting units, drafted with the
The 23rd Shenzhen Enterprise
March
Honor Electronic played an active role in its development, guiding the industry toward participation of Three "23rd Shenzhen
Innovation Records ¡ª
standardizationthrough technological innovation and contributing to the achievement of Honor Electronic, Enterprise Innovation
Benchmark Enterprises for
the China's carbon peaking and carbon neutrality goals ("Dual Carbon" goals). Records"
has been formally Independent Innovation
approved and
Shenzhen Federation of Industrial Shenzhen Enterprise Innovation Record
published Review Committee, Shenzhen Enterprise
Economics
Innovation Record Organizing Committee
Honor Electronic Honor Electronic was included in the CSI 1000 Index for the first time, which is
has been selected expected to bring considerable passive capital inflows and further improve the
for the CSI 1000 Company's market liquidity and market visibility. This reflects strong recognition of
June
Index the Company's market position and brand value.
Greater Bay Area Enterprise
Innovation Power Rankings
Innovation
¡ª Innovation Achievement
Organization
List
Honor Electronic received an "A" rating in the 2025 Wind ESG assessment, ranking Honor Electronic's Expert Review Committee for Shenzhen Excellent Performance
among the top 10% in its industry. This highlights the Company's continuous Wind ESG rating has the Greater Bay Area Enterprise Management Promotion Association
progress and solid performance in environmental, social and governance July been upgraded to "A" Innovation Power Ranking
practices, demonstrating its comprehensive capabilities and industry leadership
position in sustainability development.
Relations Gold Award List
Honor Electronic participated in the 2025 Open Data Center Summit and was - Outstanding IR Company
Honor Electronic honored with the "ODCC Outstanding Partner" award. The Company showcased a / Outstanding IR Team /
participated in Outstanding Small and
range of high-performance server power supply products, highlighting its forward- Medium-Sized Investor
the 2025 ODCC
September
looking presence in areas such as energy efficiency, high power density, and Concerns Award / Outstanding
Open Data Center liquid cooling technologies for data centers amid the AI-driven transformation, Institutional Attention Award
Summit and demonstrating its commitment to driving industry development through Shenzhen Panorama
Network Co., Ltd.
technological innovation.
Honor Electronic has been included in the "Shenzhen Top 100 Industry Leaders" Honor Electronic was
list for four consecutive years and was again recognized as a "Leader Enterprise in once again named to
the Switched-Mode Power Supply Industry". As an industry leader, the Company the "Shenzhen Top
Shenzhen Manufacturing 2025 Guangdong Top 500
September
will continue to drive development by leveraging its market advantages and 100 Industry Leaders" Single Champion Enterprise Enterprises
technological barriers.
Shenzhen Municipal Guangdong Federation of
Bureau of Industry and Enterprises and Guangdong
Information Technology Association of Entrepreneurs
Honor Electronic
was listed among Honor Electronic was once again listed among the "2025 Guangdong Province's
the 2025 Guangdong Top 500 Manufacturing Enterprises" list, ranking 128th¡ªan improvement of 36
Province's Top 500 places from the previous year. This achievement demonstrates the Company's
November
Manufacturing steady growth and comprehensive strengthin advanced manufacturing.
Enterprises Ranked 23rd in the
"Shenzhen Top 100
Enterprises
Industry Leaders"
Established in 2002, the Bao'an District Mayor's Quality Award is the highest
Honor Electronic
quality honor granted by the People's Government of Bao'an District, Shenzhen.
won the Grand Award Guangdong Federation of Shenzhen Industry Leader Enterprise
With its outstanding business performance, leading innovation capability, and Enterprises and Guangdong Development Promotion Association,
of the 10th Bao'an
high-level quality management framework, the Company stood out among Association of Entrepreneurs Shenzhen Business Daily
December
District Mayor's
numerous distinguished enterprises and was awarded the Grand Prize of this
Quality Award
year's Bao'an District Mayor's Quality Award.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
ESG Rating Performance
The 10th Bao'an District
Province Top 500
Mayor's Quality Award -
Manufacturing
Grand Prize
Enterprises
Guangdong Manufacturing Association, Guangdong Shenzhen Bao'an District
A A- AA B+
Development and Reform Research Institute, and the People's Government
Institute of Industrial Economics, and Jinan University
Wind CCXI Zhi Ding SynTao Green
Finance ESG
Rating
Board Secretaries' Offices of Boards of Directors of Listed
Listed Companies Companies in 2025
Association of Listed Association of Listed Indices
Companies in China Companies in China
Best Investor Relations Team 2025 Best Investor Relations
Award Management Award CSI SH-HK-SZ Connect SME
IT Index
Cailian Press Bohan Finance
CSI SH-HK-SZ Connect SME IT
h30508.CSI 881015.WI Wind SZ-HK Connect Index
Index HKD
The 12th Shenzhen Growth
Enterprise - Best Employer
Awards - Excellence in ESG
- Enterprise Development
Awards
Award
China Excellence in IR Awards Shenzhen Best Employer Selection Committee, Shenzhen
Organizing Committee General Chamber of Commerce and Shenzhen E-look
Network Co., Ltd.
Enterprise in Social
Responsibility
Fulfillment
Shenzhen Federation of
Industry
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Environment Dear Shareholders, Partners, and Friends,
As global digital transformation accelerates and the transition to green energy unfolds, Honor Electronic, a long-standing pioneer
• In 2025, the Company invested RMB million in environmental protection, and its primary production in power supply technology, remains committed to R&D-driven growth and steadily advances high-quality development through
bases obtained ISO 14001 certifications.
sustainable, socially responsible operations. On behalf of the Board of Directors and the management team, I'm pleased to
share the Company's innovation achievements in 2025 and future outlook to all who care about and support the Company's
• In 2025, the total volume of waste recycled and processed by the Company amounted to tonnes.
development.
Over the past year, the Company has kept abreast of evolving industry trends and steadfastly placed R&D-driven growth at the
• In 2025, the Company's Scope 1 greenhouse gas emissions amounted to 189.07 tonnes of
core of its strategy. In the power adapter and other power supply business segments, product performance and cost structures
have been continuously optimized to strengthen established market positions and actively expand the customer base. In the
server power supply segment, the Company has made early-stage strategic investments in frontier technologies for server power
carbon dioxide equivalent, and its Scope 2 greenhouse gas emissions were 35,153.29 supply, including high-power, high-power-density, high-efficiency server power supplies, the application of third-generation
semiconductors, designs compatible with efficient liquid cooling, and high-voltage direct current (HVDC) input technologies.
tonnes of carbon dioxide equivalent.
Leveraging its leading technical capabilities and extensive product portfolio, the Company has delivered more competitive, high-
performance server power supply solutions to industry customers. The synergies across diverse business lines have further
solidified the Company's comprehensive product capabilities and supported its long-term sustainable development.
In 2025, the Company actively participated in the drafting of national energy efficiency standards for power supply systems,
Social as well as multiple group standards for high-performance computing servers, promoting industry standardization through its
technological capabilities. Recognized for its overall management excellence, the Company received the Grand Prize at the 10th
• As of the end of 2025, the Company had 959 17.23%
R&D specialists, accounting for of the total number of employees. Bao'an District Mayor's Quality Awards, representing one of Bao'an District's highest recognitions for quality excellence with
strong endorsement from both the government and the society. The Company has also been consistently included among the
• As of the end of 2025, the Company had obtained a cumulative total of 30 177invention patents, utility model patents,
Shenzhen Top 100 Industry Leader Enterprises and the 2025 Guangdong Province Top 500 Manufacturing Enterprises, with its
rankings continuing to rise, further demonstrating its innovative strength and market position in the advanced manufacturing
sector.
of the People's Republic of China , the Securities Law of the People's Republic of China, and relevant dividend regulations of the
• In 2025, the customer complaint resolution rate reached 100% , and customer satisfaction
China Securities Regulatory Commission (CSRC). In accordance with its Articles of Association, the Company has established
a clear, standardized, and sustainable profit distribution mechanism, under which it actively distributes interim and annual
dividends to safeguard the rights and interests of all shareholders. During the Reporting Period, the Company strictly followed
rate reached 98.4% . approval and disclosure procedures for related-party transactions to ensure fairness, impartiality, and transparency. Through
well-established governance mechanisms, the Company continuously strengthened protections for minority shareholders and
actively mitigated potential conflicts of interest.
In terms of sustainability, Honor Electronic continues to refine its a multi-level ESG governance framework led by the Board of
Directors, integrating the principle of sustainable development into all strategies and operations. Stakeholders' concerns are
Governance addressed through a range of established communication channels. In operations, the Company focused on energy conservation
across production and auxiliary energy systems, steadily advanced distributed photovoltaic development, and increased the
• In 2025, the Company convened 3 General Meetings of Shareholders, 9 Board of Directors Meetings.
proportion of clean energy usage. In 2025, the Company achieved a series of milestones in sustainable development, including an
upgrade of its Wind ESG rating to Grade A and participation as a core contributor to the drafting of national green power energy
efficiency standards, empowering the industry's low-carbon transition through technological innovation.
• In 2025, the proportion of female directors was 33.33% , while the proportion of independent directors was
Looking ahead, Honor Electronic will uphold its vision of "Pioneering the Industry, Building a Global Brand", continue to
strengthen R&D investment, explore cutting-edge technological fields, and bring innovations into application at a faster pace.
returns to shareholders, and contribute to a more sustainable future. Honor Electronic appreciates your continued trust and
• Independent directors accounted for 66.67% of the Audit Committee, the Remuneration
support and looks forward to working together toward that future!
Thank you!
and Appraisal Committee, the Strategy Committee, and the Nomination Committee. Sincerely,
Chairman and President Wang Heqiu
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Sustainability Management Case ESG Training and Performance Review Sessions
In the context of the ongoing global momentum toward sustainable development, Honor Electronic has consistently integrated In July 2025, Honor Electronic organized ESG training and review sessions, bringing together multiple departments to
Environmental, Social, and Governance (ESG) principles into every stage of its management and operations. The Company systematically review annual performance. The sessions provided an in-depth gap analysis against targets and distilled best
actively aligns with the United Nations' 2030 Agenda for Sustainable Development , ensuring the comprehensive implementation practices in areas such as carbon management and green procurement. By transforming insights from retrospective review into
and implementation of sustainability principles. actionable improvements, the Company established a closed-loop management approach, further strengthening the foundation
of its sustainable development governance.
Sustainability Management System
In 2025, the Company strengthened its multi-tiered ESG governance structure under the leadership of the Board of Directors,
achieving full integration of the sustainability strategy from top-level planning to operational execution. This ensures consistent
and effective ESG management across all levels. The respective responsibilities at each governance tier are as follows: Honor Electronic ESG Training
• Assumes ultimate responsibility for the Company's ESG strategy and ESG disclosures
Board of • Approves the ESG strategy and ESG targets submitted by the Strategy Committee
Bo
Dir ard o Directors • Approves the annual Sustainability Report
ec
tor f
s • Conducts regular reviews of progress on ESG goals, major risk management, and related affairs
• Formulates the ESG strategy and targets, and exercises ESG-related responsibilities on behalf of
S the Board
Co trate
mm gy • Tracks and evaluates the implementation of ESG initiatives, and oversees the progress of the
itt Strategy ESG Working Group
ee
Committee • Reviews the Sustainability Report and provides recommendations on disclosed content
• Organizes training and knowledge sharing on sustainability and ESG policies, and facilitates
ES external stakeholder communication
GW
or
kin
gG
ro • Responsible for implementing ESG initiatives
up
ESG Working • Prepares the internal draft of the Sustainability Report
Group • Monitors the progress of ESG tasks across functional departments
Fu
nc • Reports ESG progress to the Strategy Committee
tio
na
lD
ep
art
me
nts Functional
• Implement specific ESG tasks within their respective areas
• Report progress on ESG activities to the ESG Working Group
Departments
• Maintain regular communication with stakeholders related to their functions
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Stakeholder Engagement Materiality Assessment
Honor Electronic follows the AA1000 SES stakeholder engagement principles and has identified shareholders/investors, Materiality Assessment Process
customers, suppliers, employees, government and regulators, local communities, and the media as its key stakeholders. The
Company has established multi-channel, routine communication mechanisms to ensure timely responses to stakeholder To ensure the accuracy and effectiveness of its ESG work during the year, the Company conducted a materiality analysis based on
concerns. a pragmatic approach, with a focus on the clearly identified ESG concerns and expectations of key customers.
Stakeholder Category Communication Channels Key Concerns Honor Electronic's Response
• Annual general meeting • Corporate governance • Enhancement of corporate
• Investor relations website • Information disclosure • governance
Company Value Chain Analysis
We conducted a systematic review of the Company's operating environment, including regulatory requirements,
• Earnings presentations • Product and service quality • Standardized information disclosure
industry trends, and value chain characteristics, which served as the primary basis for identifying material issues.
• Analyst meetings • Innovation-driven • Enhancement of quality control
• Roadshows & Industry development • Continual investment in R&D
Shareholders / conferences • Climate change response • Carbon neutrality actions Development of the Issue List
Investors During the year, we referred to relevant regulatory frameworks such as the Self-Regulatory Guidelines No. 17 for
Companies Listed on Shenzhen Stock Exchange¡ªSustainability Report (For Trial Implementation), and prioritized
• Emails • Product and service quality • Enhancement of quality control addressing the ESG concerns of key customers. This ensured that all identified issues are closely aligned with the
• Conference calls • Data security and privacy • Enhancement of data security Company's operations and the interests of its core stakeholders. After evaluation, we finalized a list comprising 9
• On-site visits protection • Promotion of circular economy environmental issues, 9 social issues, and 6 governance issues, providing clear guidance for annual strategic planning
• Customer satisfaction • Climate change response practices and disclosure.
surveys • Intellectual property • Carbon neutrality actions
Customers • Annual Reports protection • Strengthening innovation and
intellectual property protection
Assessment and Confirmation of Issue Materiality
We systematically collected and analyzed ESG concerns raised by key customers across various communication
• Emails • Energy consumption • Optimization of energy mix and
channels. By quantifying and comparing the level of attention each issue received in customer feedback, we categorized
• Conference calls • Product and service quality efficiency
materiality into three levels: "High", "Medium", and "Low". Issues receiving the greatest attention from customers were
• On-site visits • Supply chain safety • Enhancement of quality control
classified as high materiality and prioritized for ESG management and disclosure in the Current Year.
• Supplier conferences • Innovation-driven • Strengthened supply chain resilience
• Instant messaging development and due diligence
• Use of green materials • Increased R&D investment in
sustainable solutions Reporting on Material Issues
• Preference for environmentally The finalized list of material issues served as the direct basis for planning the year's key ESG initiatives, allocating
Suppliers
responsible materials resources, and preparing this report. We have provided targeted disclosures in the report regarding the management
approaches, related targets, and specific performance metrics for each material issue.
• Internal emails • Employees • Protecting employees' interests and
• Employee conferences • Occupational health & rights
Based on the assessment results, Honor Electronic prioritizes the disclosure of highly material issues, concentrates resources on
• Performance evaluation safety • Organizing training in health and
core ESG issues, and provides targeted guidance for the Company's sustainable development.
• Instant messengers • Career development safety
• Annual Reports • Contribution to society • Policy transparency and employee
• Integrity and anti- training Importance to Honor Electronic's Importance to Honor Electronic's Importance to Honor Electronic's
Employees
corruption • Community welfare activities Customers£ºHigh Customers£ºMedium Customers£ºLow
• Strict compliance with anti-bribery Dimension Material Issues Dimension Material Issues Dimension Material Issues
policies
Climate Change Water Resource Ecosystem and
Environmental Environmental
• Official meetings • Environmental compliance • Strict environmental compliance Response Utilization Environmental Biodiversity
• Policy consulting management management Pollutant and Waste Environmental Circular Economy Conservation
• Submitting regulatory • Data security and privacy • Enhanced data protection and Environmental
Management Safety and Quality of Green Products and
reports protection encryption Social Environmental
Environmental Waste Disposal Product and Service Design
• Compliance inspection • Climate change response • Carbon neutrality actions
Government / Environmental Social Rural Revitalization
• Full compliance with environmental Data Security and
Regulators Environmental Compliance Social Social Social Contribution
regulations Privacy Protection
Management Social Technology Ethics
• Community activities • Pollutant and waste • Emissions reduction programs
Environmental Energy Utilization Anti-Commercial Social Equal Treatment of SMEs
• Environmental reports management • Carbon neutrality actions
Social Supply Chain Security Governance Bribery and Anti- Governance Due Diligence
• Social media interactions • Climate change response • Smart water management
Social Employees Corruption
• Emails • Water resource utilization • Participating in circular economy Communication with
Governance Risk Management Governance
• Meetings • Waste disposal • Supporting biodiversity conservation Innovation-Driven Stakeholders
Social
Governance Corporate Governance
Communities &
Media • Biodiversity conservation Development Governance Anti-Unfair Competition
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Corporate Governance Diversity and Independence
Honor Electronic continues to strengthen board diversity and
professional development. As of the end of 2025, the Board comprises
Honor Electronic's Board of Directors has consistently regarded safeguarding the Company and all shareholders' interests as 9 directors, including 3 independent directors and 3 female directors. Independent directors account for
its core responsibility, while diligently and comprehensively fulfilling duties and optimizing the governance system. We are Each director brings extensive expertise and practical experience
committed to enhancing board independence and diversity, establishing efficient and transparent investor communication
mechanisms, deepening practices in investor relations management, and standardizing disclosure procedures, thereby
strengthening operational transparency and credibility, and creating long-term value for shareholders.
in areas such as industry insight, strategic planning, and financial
management. The diverse backgrounds and perspectives of the 33.33% of the Board
Board members provide a solid foundation for sound decision-
making and significantly contribute to the Company's long-term
sustainability. Detailed information on the background of each Board
Governance Structure Female directors account for
member is available in the 2025 Annual Report.
Honor Electronic strictly complies with relevant laws and regulations, including the Company Law of the People's Republic
of China, the Securities Law of the People's Republic of China, the Code of Corporate Governance for Listed Companies , and
The Company's independent directors are all senior professionals in
their respective fields, with solid industry and practical experience in
the Stock Listing Rules of the Shenzhen Stock Exchange, and upholds compliance as a fundamental principle. The Board has accounting, law, and industrial technology. All independent directors
established four specialized committees: the Audit Committee, the Nomination Committee, the Remuneration and Appraisal fully comply with the independence requirements stipulated in
Committee, and the Strategy Committee, all of which operate in strict accordance with established rules and regulations, the Administrative Measures for Independent Directors of Listed Independent directors account for
effectively safeguarding shareholder rights and promoting the Company's standardized development. Companies and the Shenzhen Stock Exchange Self-Regulatory
Guidelines No.1¡ª Standardized Operations of Main Board Listed
Companies. This includes not holding any positions within the 66.67%
General Meetings of Shareholders Company other than that of independent director, having no related-
party relationships with the Company, its controlling shareholders, or of the membership in each of the
actual controllers that could affect their independent and objective following committees: the Audit
judgment, and receiving no additional or undisclosed benefits from Committee, the Remuneration and
Board of Directors Office of Board Affairs the Company or its related parties other than the remuneration for Appraisal Committee, the Strategy
independent directors. To further strengthen the independence and Committee, and the Nomination
effectiveness of the Board, independent directors account for more Committee.
than half of the members of each of the Board's four specialized
committees: the Strategy Committee, the Remuneration and
Strategy Committee Nomination Committee Audit Committee Remuneration and
Appraisal Committee, the Audit Committee, and the Nomination
Appraisal
Committee.
Audit Department
Compensation Management Framework
The Remuneration and Appraisal Committee reviews and formulates compensation policies and schemes for directors and
senior management based on the Board's long-term strategy and business development. The Committee considers industry
trends, market compensation levels, as well as the specific responsibilities undertaken, and individual performance backgrounds
of directors and senior management. It also provides recommendations on performance evaluation approaches. At the same
time, the Committee monitors and assesses the implementation of the compensation system to ensure its effective execution.
In 2025, Honor Electronic improved its internal control system in accordance with relevant laws and regulations, including It is explicitly stipulated that no director or their related parties may participate in decisions regarding their own compensation,
the Company Law of the People's Republic of China and the Code of Corporate Governance for Listed Companies. During the thereby safeguarding the independence and fairness of compensation decision-making process.
Reporting Period, all directors fulfilled their duties with diligence and integrity, thereby effectively ensuring the sound and well-
regulated corporate decision-making.
Investor Relations Management
The Company strictly complies with relevant regulations, including the Company Law of the People's Republic of China, the Securities Law of the
People's Republic of China, the China Securities Regulatory Commission's (CSRC) Notice on Further Implementing Relevant Provisions on Cash
In 2025 Over the past five years Dividend Distribution for Listed Companies, and the No.3 Guideline for the Supervision of Listed Companies - Cash Dividend Distribution of Listed
Companies. Profit distribution is made pursuant to the dividend policy and approval procedures stipulated in the Articles of Association . The
the Company convened Honor Electronic has Company has established clear dividend criteria, reasonable payout ratios, standardized decision-making procedures, and a sound operational
not been subject to any framework to ensure compliant, well-governed, and sustainable distribution.
Shareholders
Meetings
penalties related to
corporate governance.
The Company places strong emphasis on protecting the rights and interests of minority shareholders, and has developed systematic policies
and mechanisms to prevent and resolve potential conflicts of interest. During the Reporting Period, the Company strictly enforced the approval
and disclosure procedures for related-party transactions, ensuring all such transactions were conducted fairly, transparently, and openly, thereby
safeguarding the legitimate interests of all investors.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Information Disclosure and Stakeholder Communication
Compliance Operations
Honor Electronic strictly adheres to laws and regulations for information disclosure, fulfills its disclosure obligations, and
maintains the Investor Relations Management System to protect the benefits and interests of stakeholders, particularly minority
Honor Electronic consistently upholds a compliance-driven business philosophy and strictly adheres to relevant laws and
shareholders. During the Reporting Period, while fully complying with mandatory disclosures, the Company proactively
regulations, including the Oversight Law of the People's Republic of China, the Audit Law of the People's Republic of China,
expanded voluntary disclosures, enhancing both the breadth and depth of information on key topics such as corporate strategy,
and the Provisions on Internal Audit Work issued by the National Audit Office. The Company actively responds to customers'
governance structure, green operations, employee development, and supply chain responsibility, thereby continuously improving
requirements on compliance management and has established a comprehensive compliance management system covering
transparency and disclosure effectiveness.
key areas such as corporate governance, sales cycles, business partners, employee relations, and information security. By
In 2025, the Company prepared and duly published the 2024 Annual Report, the 2025 First Quarter Report, the 2025 Half-Yearly systematically standardizing internal audit and risk management practices, the Company effectively safeguards the legitimate
Report, and the 2025 Third Quarter Report, and a total of 160 announcements, all without error. The Company held one online rights and interests of investors.
earnings conference for the 2024 annual results and disclosed 15 Investor Relations Activity Reports. In addition to regular surveys
and discussions, the Company also held earnings calls on the release of the 2024 Annual Report, the 2025 First Quarter Report, the
Risk Management
financial condition.
Honor Electronic has established a cross-departmental risk governance structure led by the Board based on its operational
realities and business development needs. The Board and various business units closely monitor industry trends and, when
necessary, engage professional institutions to systematically identify, carefully assess, and dynamically evaluate operational and
business-related risks. The Company continuously refines its risk response mechanisms to ensure stable and sustainable business
During the Reporting Period
operations.
the Company responded to and received over
Risk Category Description Measures
online investors platform:
industry technology trends, combined with
irm.cninfo.com.cn regular market insights and customer needs
With the accelerating evolution of market
Furthermore, among which 14 sell-side analysts maintained coverage of the Company and published a total of research, to drive continuous innovation in
demand and business model iteration,
application scenarios are increasingly
Market customer needs and market demands and value
fragmented and personalized. This calls for
Demand expectations.
the Company's products and solutions to stay
Market Risk Fluctuations • Establish and improve internal and external
highly competitive; otherwise, the Company
The Company's practices in information disclosure, investor communication, and minority investor protection have been market information communication and feedback
runs the risk of declining market share and
well recognized by the capital market, earning multiple prestigious awards, including "2025 Typical Practice Case of Board of mechanisms to enhance the responsiveness
stagnant growth.
Directors" and "2025 Best Practice Case for Board Secretaries' Offices of Listed Companies" awarded by the China Association for to market dynamics and potential issues, and
Public Companies; "Outstanding IR Company," "Outstanding IR Team," "Outstanding Award for Minority Investor Relations" and develop targeted action plans to strengthen
"Outstanding Award for Institutional Investor Relations" at the 6th Panorama Investor Relations Golden Awards; the "Best Investor market adaptability.
Relations Team" granted by Cailian Press; and the "2025 Best Investor Relations Management" granted by Bohan Finance. Honor
• Enhance procurement transparency and supply
Electronic will leverage these recognitions to continuously optimize investor communication mechanisms, broaden and deepen
chain collaboration efficiency through the
information disclosure, further strengthen engagement channels with all investor types, and respond to market concerns with
more concrete actions to create greater long-term value for shareholders. Business operations may be temporarily transparent procurement platform and supply
halted due to unexpected events such as chain digitalization, strengthening overall supply
natural disasters, human-induced accidents, chain stability and compliance governance.
Supply Chain
critical information system failures, or supply • Diversify manufacturing base layouts and coordinate
Disruption
chain disruptions, directly impacting order operations across multiple logistics centers,
delivery, customer service, and financial establishing flexible capacity and distribution
performance. network allocation capabilities to systematically
improve supply chain resilience and ensure business
continuity.
Supply
Chain Risk
ESG-related incidents such as environmental
violations, ethical breaches, inadequate
labor rights protection, or insufficient health
• Clearly require suppliers to comply with the
Supply Chain and safety management within the supply
Company's ESG policies and management
ESG Risk chain may compromise production stability,
requirements.
product compliance and safety, and have
cascading negative impacts on operations
and brand reputation.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Risk Category Description Measures
• Establish and continuously improve the organizational In 2025
The Company and its employees may face legal structure, system norms, process mechanisms, and
liability, regulatory penalties, financial losses, operational guidelines for compliance risk incident there were no major risk audit findings were fully
Compliance resolved
Legal and or reputational damage due to non-compliance management, strengthening end-to-end capabilities incidents due to internal
Risk
Compliance with applicable laws, regulations, or standards in in prevention, response, and post-incident handling control failures
Risk management or professional conduct. to ensure timely identification, proper resolution, and closure rate
effective control of risks.
• Develop and implement systematic quality risk
Risks of product quality uncertainty may arise due management processes and standardized
to ongoing technology development, suboptimal documentation covering the entire product
Quality Risk Business Ethics
product design, or lapses in production process lifecycle¡ªfrom design and production to delivery¡ª
control. to strengthen quality control and reduce the
potential impact of quality fluctuations. Honor Electronic consistently adheres to ethical business practices and strictly complies with China's anti-corruption laws and
regulations, as well as international standards such as the United Nations Convention against Corruption . The Company integrates
• Conduct systematic hazard identification and principles of integrity and self-discipline throughout its governance and operational processes. The Company is committed to
special rectification, strengthening source establishing and improving an ethics and compliance risk control system that covers all employees, all business processes, and
prevention and process control. the entire value chain.
Potential risks of fire, explosion, or other
Production • Equip and maintain fire protection and To strengthen this system, the Company has established a corruption prevention governance structure led by the Board,
production safety incidents due to improper
Operational emergency rescue facilities, and establish an coordinated by the Internal Audit Department, and implemented across all business units. The Board provides strategic direction
management or operation of raw materials during
Risk Safety Risk
storage and use in production operations. internal safety training website to continuously and oversight, while management drives training and system development to ensure anti-corruption principles are applied across
deliver safety awareness and operational skills domestic and overseas operations and investments. The Company expressly prohibits corruption, bribery, fraud and money
training, comprehensively enhancing risk laundering by the Company or any employees (under all forms of employment), and extends this requirement to all suppliers,
prevention and emergency response capabilities. contractors, and service providers, collectively reinforcing a strong ethical foundation.
• Strictly standardize storage and management of raw At the regulatory level, the Company has formulated the Anti-Fraud Policy , which clearly defines fraudulent behaviors,
The Company's raw materials, production noise,
materials, and implement systematic control and investigation procedures, and disciplinary standards, thereby setting explicit behavioral boundaries for all employees. Within
and discharges of wastewater and exhaust gases
Environmental compliant disposal of production noise, domestic the internal management framework, employees in key positions such as procurement are required to sign the Procurement
may have adverse impacts on the surrounding
Pollution Risk wastewater, and exhaust gases to minimize potential Confidentiality and Integrity Commitment upon onboarding, embedding integrity responsibilities into their roles. In dealings
environment and the quality of life of nearby
disturbances and impacts on the surrounding with external parties, all suppliers are required to sign the Integrity Commitment , extending compliance requirements to
residents.
environment. business partners from the outset. Through a multi-layered approach comprising institutional controls, formal agreements, and
accountability mechanisms, the Company has systematically strengthened its anti-corruption and business ethics framework,
providing a solid foundation for its healthy and sustainable development.
Internal Control Anti-Monopoly and Fair Competition
Honor Electronic has built a systematic institutional support framework and formulates a series of core policies, including The Company strictly complies with the Anti-Monopoly Law of the People's Republic of China and the Anti-Unfair Competition
the Internal Control Management Regulations, to provide a solid foundation for internal control. In 2025, the Company continued Law of the People's Republic of China , and has formulated and implemented the Anti-Monopoly Management Procedure and the
to improve its institutional system by updating the Internal Audit System, which further strengthened end-to-end institutional Fair Trade, Advertising and Competition Management Procedure. By strengthening internal control mechanisms, the Company
support for internal control processes, risk management, audit oversight, corrective actions and reporting, thereby forming a integrates compliance requirements into its daily operations and continuously enhances employees' legal awareness and
closed-loop management model. standards of conduct, thereby contributing to a fair, orderly and competitive market environment.
Honor Electronic's internal control framework provides comprehensive risk coverage across core business modules, including The Company attaches great importance to anti-monopoly
treasury and cash management, accounting and bookkeeping, procurement and payment, sales and collection, fixed asset and fair competition, regarding them as core principles of
management, and use of proceeds, ensuring clear guidance for all critical operational processes. To ensure effective policy its business operations. The Company regularly organizes
In 2025
implementation, the Company clearly defines internal control responsibilities by position, reinforces control at key process points, training for senior management and relevant personnel on
and conducts regular employee training, continuously improving execution effectiveness and supporting compliant operations. applicable laws and regulations, and promotes ongoing the Company had no legal cases related to
internal communication and guidance to ensure that all anti-monopoly or unfair competition, nor any
During the Reporting Period, the Company conducted regular or ad hoc audits targeting procurement, fixed assets, R&D, and
employees understand and comply with business conduct violations related to fraud or corruption.
use of proceeds. Audit-driven optimizations were made to supplier onboarding and qualification review, bidding evaluation and
standards and uphold fair competition in their daily work.
oversight, goods receipt and acceptance, equipment inventory checks, R&D cost allocation, and fund disbursement requests, and
business units were directed to complete remedial actions, effectively reducing fraud exposure. Additionally, to further improve
the standardization and applicability of its documentation, the Company continuously updated its contract template library,
enabling efficient business operations while protecting the Company's core interests to the maximum.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Whistleblowing and Case Handling Case Conducting Legal Training on Trade Secret Protection to Strengthen Employee Awareness
We have established dedicated channels for reporting fraud and misconduct, including a whistleblower hotline and an email
address, for all parties to report, disclose, or raise concerns about professional ethics violations or suspected fraud. These
In November 2025, the Company's Compliance and Legal Center organized legal training on trade secret protection for relevant
channels are open to all employees and external parties with direct or indirect economic ties to the Company.
departments. The training aimed to enhance employees' understanding of applicable laws and regulations, and, with reference
Reports are initially assessed by the Internal Audit Department within 7 working days and presented to the Audit Committee to internal control requirements and external case studies, clarified the scope of trade secrets, specific confidentiality obligations,
to determine whether to open an investigation. Following the Audit Committee's approval, the Internal Audit Department will and key considerations in daily work.
develop an investigation plan, and relevant departments are required to cooperate. Routine cases shall be concluded within 60
Through this training, employees further recognized the importance of trade secret protection to the Company's operations
days from the date of formal acceptance; cases referred to other departments must be completed within 15 days, with follow-ups
and market competitiveness, which contributed to the continuous improvement of the Company's confidentiality management
on the outcome. The Company commits to notifying real-name whistleblowers of the report's acceptance status within 10 days of
system and the effective implementation of relevant measures.
their registration.
Honor Electronic implements comprehensive protection for Data Security and Privacy Protection
whistleblowers. The Company enforces strict confidentiality
for whistleblowers and prohibits retaliation in all forms,
• Whistleblower Hotline£º+86 755 3385 7166 ext. 8308 Honor Electronic regards data security and privacy protection as a core foundation for sustainability. The Company has
extending protection to the whistleblower's relatives and to
established a holistic information security management system covering institutional frameworks, organizational structure,
individuals erroneously identified as whistleblowers. The • Whistleblower Email£ºaudit@honor-cn.com
technical safeguards, and emergency response. The Company strictly complies with national laws and regulations, including
Company will seek legal remedies against any retaliatory acts.
the Cybersecurity Law of the People's Republic of China, the Electronic Signature Law of the People's Republic of China , and
Additionally, a mandatory recusal process requires employees
the Regulations of the People's Republic of China for Safety Protection of Computer Information Systems . Internally, the Company
handling the report to withdraw if they have a reporting
has developed a robust information security management system centered on key policy documents such as the Information
relationship or any other conflict of interest with the reported
Network Management Regulations, the Information and Computer Management Regulations, the Information System Operation
party that may affect impartiality.
Management Measures, the Information Security Organization Development Guidelines, the Classification and Control Procedures
for Confidentiality Levels, the Information Security Disciplinary Management Procedures, and the Privacy and Confidentiality
Management Procedures. These measures strengthen graded access controls over sensitive information and establish clear
Business Ethics and Anti-Corruption Training accountability for violations. In addition, to enhance security in critical business processes, Honor Electronic revised and updated
Honor Electronic regards anti-corruption training as a critical element of corporate governance and compliance framework. the Seal Management System in 2025. Based on actual operational needs, the revised policy provides clear guidelines for all
Systematic training effectively builds employees' policy comprehension, reinforces ethical awareness, clarifies permissible stages of seal management, including engraving, custody, registration, transfer and disposal. The Company has introduced
and prohibited conduct, and supports proactive avoidance of corruption risks across employees' careers, thereby collectively plastic-encapsulated registration forms to improve traceability and compliance, and has optimized ledger templates to enable
safeguarding the Company's integrity and sustainable growth. fully digitalized, standardized, standardized and traceable management process of the seal lifecycle.
Honor Electronic continuously strengthens its cybersecurity governance framework with project managers playing a central
Case Honor Electronic's Disclosure Compliance Training role, and clearly defines the roles and responsibilities of personnel at all levels in information security management. Through
regular reviews of accountability fulfillment and audits of policy implementation, the Company ensures effective execution
of management requirements and the timely identification and remediation of potential risks. The Company also conducts
In October 2025, the Company organized a training session on standardized operations and compliance management delivered
information security training through multiple channels on a regular basis, enhancing awareness of personal data and trade
in blended online and offline formats. The session featured a detailed case study involving a senior executive at another company
secret protection. At the same time, we continue to advance data leakage prevention measures to safeguard critical data and
who exploited internal control weaknesses to commit fraud and obtain illicit gains amounting to RMB 10 million. This real-world
prevent unauthorized disclosure, striving to provide customers with more secure and reliable services.To prevent and respond
example was used to underscore the necessity of robust internal control systems and strict adherence to compliance standards.
to information security incidents, the Company has established a security incident response mechanism and implemented key
The training significantly reinforced employees' awareness of ethical conduct, actively promoted the culture of integrity, and
procedures, including the Information Security Risk Assessment Management Procedure, the Information Security Risk Assessment
contributed to a stronger internal governance and greater transparency.
Control Guidelines, and the Incident and Weakness Management Procedure , to proactively identify and address potential security
threats.
Honor Electronic's Disclosure Compliance Training
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Technological Innovation Green Design
Honor Electronic regards technological innovation as the core driving force for enterprise development. By continuously increasing Honor Electronic integrates sustainable principles into the design of its product lifecycle, systematically considering energy
investment in research and development, optimizing its R&D management system, and positioning itself in frontier technology fields, it efficiency levels, the application of green materials, and resource utilization efficiency during the research and development
consistently strengthens product competitiveness and market responsiveness. In 2025, the Company's R&D expenditure accounted for phase. In 2025, the Company further strengthened its green product innovation mechanism. Through energy efficiency
low-carbon, high-efficiency, and recyclable development. This initiative continuously enhanced the environmental performance
of products, thereby assisting customers in achieving their green transformation objectives.
Innovation Management System
The Company continues to enhance the energy conversion efficiency of its power products, significantly reducing the total
The Company has established a comprehensive innovation management system, deeply integrating the innovation-driven strategy into its
lifecycle energy consumption and carbon footprint of the products while optimizing costs. By adopting advanced topology design
governance and operations. At the cultural level, an innovative atmosphere characterized by "tolerance for failure and encouragement of
and digital control technologies, we have successfully elevated the light-load efficiency of multiple products to above 96%,
exploration" is actively cultivated to continuously stimulate organizational innovation; at the strategic level, global power market trends are
actively benchmarking against international high-level energy efficiency standards.
closely monitored, and R&D directions are dynamically optimized based on core technological advantages to ensure effective alignment
between innovation and market demand; at the execution level, coordinated efforts are made across the dimensions of strategy, technology, and
management to advance the systematic implementation of the innovation system, thereby efficiently converting innovation investments into a Product Design Phase R&D and Production Verification
core driving force for sustainable development.
Through the application of high-frequency techniques, We have vigorously promoted the application of
magnetic integration, and magnetic component energy-saving technologies. In the ageing testing of
stacking, we have effectively reduced raw material server power supplies, an "energy feedback system"
Pioneering the Industry, Building a consumption while ensuring performance standards. was adopted to replace traditional resistive loads. This
Global Brand Material selection strictly adheres to regulations such enables over 80% of the electrical energy consumed
as RoHS and REACH. Environmentally friendly and during testing to be fed back into the grid, significantly
recyclable materials are prioritized, while the control reducing energy consumption and thermal emissions.
Technology-Driven, Innovation-Led
of hazardous substances is rigorously enforced. For Consequently, the demand for air-conditioning cooling
instance, the foam, cardboard boxes, and pallets is diminished, thereby achieving green testing.
Strategic Innovation Technological Innovation Management Innovation employed are all recyclable materials. Furthermore,
the new design implements "short fan cable design"
Shift from independent Leverage the "Guangdong High-Efficiency Fully promote improvement and "direct plug-in socket" configurations to replace
development to a dual-driven Intelligent Power Supply and Power proposals, lean production, traditional processes, thereby reducing wire usage and
strategy of in-house R&D and Management Engineering Technology and 6S management waste generation.
customized development for Research Center" as a platform to drive practices.
clients. technological innovation. Hold monthly lean Furthermore, we have established a circular economy management system covering the product end-of-life stage. We implement
Focus on expanding major Focus on developing invention patents management meetings and a weekly scheduled centralized disposal process for R&D prototypes and scrapped products in collaboration with compliant
domestic and international and actively participate in formulating an annual lean management recycling agencies to ensure that materials such as metals are recovered safely and environmentally, thereby promoting resource
clients while supporting and and revising industry standards. conference. circulation throughout the entire lifecycle.
maintaining SME customers. Continuously introduce and optimize Continuously improve
Focus on conventional information management systems. internal management through
Honor Electronic's 5.5kW AI Server Power Supply Achieved 80 PLUS Ruby Certification, Delivering
power supplies while also Continuously invest annually to upgrade process optimization, system Case
High Efficiency to Data Centers
developing digital, intelligent, production automation and intelligence. standardization, excellence
and environmentally friendly performance models, and
products. ISO/TS certifications. In 2025, the Company secured 80 PLUS certification for a
total of nine products. Among these, the AP-UL5500F54Y1
APLUSPOWER brand owned by Honor Electronic, achieved
Innovation-Driven Management
Development Mechanism Incentive Mechanism 80PLUS Ruby certification. This represents a high-level
Mechanism for Operational Resilience energy efficiency standard within the 80 PLUS framework
specifically designed for data centers. By employing advanced
Innovation-Driven Strategy topology and control technologies, this product achieves
To foster an innovative environment, the Company has established a series of innovation incentive systems and measures, ultra-high efficiency of approximately 97.2% at 50% load
including the Technology Roadmap, the Patent Application Management Measures, and the Patent Reward System. Innovation and approximately 96.2% at full load, with a power factor
achievements are awarded additional points in project assessments, and rewards are promptly implemented based on monthly approaching 0.999 in the medium-to-high load range. This
and annual evaluations to effectively encourage R&D personnel to pursue innovation boldly. breakthrough not only directly reduces the operational
energy consumption and electricity costs of data centers but
The Company has also actively promoted technical standardization. As of the end of the Reporting Period, it had led or participated also effectively alleviates cooling pressures within server
in the formulation of a total of 10 standards, including national, group, and local standards, thereby empowering industry rooms by minimizing heat emissions, thereby enhancing
development through standardized outcomes and demonstrating the practical effectiveness of its innovation management 5.5kW AI Server Power Supply
system reliability. It provides clients with a lower-carbon,
system. Achieved 80 PLUS Ruby Certification
more stable, and cost-effective power infrastructure solution.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Laboratory Testing Capability Protection of Intellectual Property Rights
Honor Electronic has established a comprehensive testing system compliant with international standards to provide authoritative Honor Electronic regards intellectual property protection as one of its core strategies and has established a systematic and
assurance for product quality. The Company's laboratory is equipped with state-of-the-art testing systems. It currently possesses professional management system. We have formulated and implemented the Intellectual Property Management Manual and the
nearly 200 sets of internationally advanced testing equipment, including a semi-anechoic chamber (SAC-3) and a Highly Intellectual Property Document Control Procedure. A dedicated Intellectual Property Department has been established to assume
Accelerated Life Test (HALT) system. Comprehensive testing solutions for electrical performance, electromagnetic compatibility, full responsibility for the overall management and end-to-end operation of intellectual property rights, including trademarks
and reliability verification are provided throughout the entire product lifecycle. The professional team comprises over 80 and patents, and to lead relevant dispute resolution and litigation mediation activities. Currently, the Shenzhen headquarters
professional testing engineers and 10 quality management experts. Additionally, by proactively introducing automated detection of Honor Electronic has obtained certification for the Intellectual Property Management System in accordance with GB/T 29490-
systems, the Company's laboratory has achieved automated coverage of 80% of key projects.Digital transformation has delivered 2013, signifying that the Company's standardization and institutionalization of intellectual property management have achieved
significant efficiency gains, reducing the turnaround time for each batch of testing by 40% and improving data accuracy to 99.98%. national standards.
Currently, the Company's laboratory has obtained CNAS accreditation and international mutual recognition, fully demonstrating The Company has established an internal audit mechanism covering the entire lifecycle of R&D outcomes. With patent novelty
that the laboratory's management has reached an internationally recognized standard. Additionally, leveraging this search as a prerequisite step, technical risks and layout opportunities are systematically identified. Assessments are conducted
comprehensive testing platform, Honor Electronic is able to ensure that its products demonstrate high reliability and superior strictly in accordance with the requirements concerning the three essential characteristics of patents and the statutory standards
performance across diverse environments and application scenarios, thereby providing customers with secure, stable, and high- for patentable subject matter. Through the scientific segmentation of patent application pathways and core value tiers, we achieve
quality technical support. precise positioning, efficient deployment, and optimal protection of innovation outcomes, thereby continuously enhancing the
strategic value and operational efficacy of intellectual property.
Honor Electronic continues to expand an intellectual property portfolio domestically and internationally, strengthen compliance
management, and effectively safeguard the security and compliance of its international operations. The Company has completed
trademark registrations and patent applications in multiple countries and regions, including China, the United States, the
European Union, the United Kingdom, Japan, and South Korea, and has obtained numerous authorizations. Additionally, we
regularly organize intellectual property (IP) thematic training sessions for management and core technical personnel. Through a
hybrid approach combining online and offline formats, we enhance employees' awareness of IP protection, capabilities in patent
mining, and proficiency in mitigating infringement risks across R&D and production processes, thereby providing robust support
for the Company's sustainable innovation.
As of the end of 2025
the Company had cumulatively obtained
CNAS-Accredited Laboratory Laboratory Accreditation Certificate
A total of
Furthermore, to enhance the collaborative efficiency and management accuracy of the R&D process, the Company officially
launched the "R&D Test Scheduling Management System" in 2025, achieving end-to-end digital management of test tasks from
comprising
application and scheduling through execution to result feedback. The system enables R&D personnel and project managers to
submit testing applications online, track task progress in real time, and query project status and progress instantly via mobile
devices. Test engineers are able to complete operation records and data entry within the system, thereby enhancing the
standardization of execution. Additionally, the system incorporates a component stress testing database, capable of automatically In 2025, the Company systematically advanced the construction of its intellectual property system in alignment with its
matching and updating historical data while supporting real-time supplementation of new component information. This established patent strategic objectives.
effectively reduces repetitive testing and accelerates R&D iteration efficiency.
Planned patent applications for the year actual completed domestic and overseas target achievement rate
patent applications
As of the end of 2025 70 applications 80 applications 114%
The scale and quality of patent output improved simultaneously. Among them,
the Company had accounting for
This further strengthened the Company's international intellectual property framework, laying a more solid
institutional and compliance foundation for global business expansion and core technology protection.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Craftsmanship and Quality The Company has segmented the product development process into five stages: RFQ, EVT, DVT, PVT and
MP. Entry into the subsequent stage is permitted only upon successful review of DFX at each stage, thereby
Quality
achieving strict end-to-end control. R&D collaborative design is facilitated through system platforms such as
Management
Honor Electronic strictly complies with the Product Quality Law of the People's Republic of China, the Standardization Law of the PLM and BPM, while software tools including thermal simulation and magnetic simulation are introduced to
Design
People's Republic of China, and other domestic and international laws, regulations, and standards concerning product quality and fully validate product performance during the design phase, thereby enhancing R&D quality and reliability
safety, and consistently treats product quality and safety as the lifeline of enterprise development. from the source.
The Company has established a comprehensive material quality management system covering the entire
Quality Management System chain from supplier qualification to process control and continuous improvement. By establishing inspection
Honor Electronic is committed to establishing and continuously improving a systematic quality management system that covers criteria and executing advanced environmental assessments, including incoming material reliability and dust-
Material
the entire process. We implement a zero-defect quality management philosophy and adopt "Quality First, Customer Service, Full salt spray tests, the performance of materials and compliance with environmental regulations are ensured.
Quality
Participation, Continuous Improvement" as our quality policy. A tiered management approach is implemented for supplier management, covering the entire process from
Management
development and delivery to inspection and evaluation optimization. Additionally, the professional skills and
At the level of institutional framework interception capabilities of the supply chain team are continuously enhanced through on-site expert training
and cross-learning among inspection personnel.
The Company has formulated and strictly implemented a series of internal regulations and standards, including the Quality
Management Manual, the Regulations on Handling Quality Anomalies, the Product Recall Management Regulations, the Product The Company has established a digital process quality control system, leveraging the MES system to conduct
Reliability Verification Control Procedure, and the Final Inspection and Testing Control Procedure. These measures ensure that real-time monitoring and precise traceability across the entire production lifecycle. By integrating multi-
Process
clear quality standards and executable operational procedures are established across all business processes, from R&D design and source data acquisition channels, including RFID and barcodes, real-time collection and analysis of key
Quality
material procurement to manufacturing and after-sales service, achieving full-process control and traceability. process parameters are achieved, ensuring that the production process is transparent and controllable.
Management
Based on information flow-driven closed-loop control, anomalies can be promptly alerted and processes
At the level of organizational assurance optimized, thereby effectively ensuring product consistency and process stability.
The Company has designated the Quality center as the lead department for product quality management, responsible for The Company extends quality management to the after-sales stage and establishes a closed-loop customer
coordinating quality control across the entire value chain. A six-tier product quality and safety management structure has been feedback handling mechanism. The "3-3-7" rapid response principle is strictly implemented, whereby
established, ensuring that quality responsibilities are cascaded from the Director of the Quality center down to frontline testers. responses are provided within three hours, 8D reports are submitted within three days, and cases are
This has formed a management network characterized by clear accountability and collaborative synergy, thereby providing robust Service closed within seven days. Coupled with customer satisfaction tracking, issues and recommendations
organizational assurance for the stability and continuous improvement of product quality. Through the dual support of systems Quality shall be converted into internal improvement inputs to drive continuous iteration of products and
and organization, the Company ensures the consistent delivery of high-quality and reliable products to its customers. Management services. Additionally, a quality objective system spanning all organizational levels has been established.
Customer satisfaction is designated as a primary objective and decomposed into functional departments.
Through monthly planning and the PDCA cycle, dynamic reviews are conducted to ensure the effective
implementation of the quality strategy.
Comprehensive Improvement of Quality Level
As of the end of the Reporting Period, all primary production bases of the Company have obtained ISO 9001: 2015 quality
Quality Effectiveness management system certifications. Among them, the production bases in Shenzhen, Dongguan and Vietnam have further
obtained IATF 16949:2016 certifications, which signifies that the Company's quality management capabilities in specific areas
have reached an international leading standard.
Customer and Stakeholder Requirements
Procurement Delivery &
R&D Design
& Supply
Manufacturing
After-sales The Company's primary production bases have obtained The production bases in Shenzhen, Dongguan and
Sustainable Development
Standardized Conformance Pass Yield Customer ISO 9001:2015 quality management system certifications. Vietnam have obtained IATF 16949:2016 certifications.
Synchronization Certification Testing Satisfaction
• RFQ • Qualified Supplier • Testing and • Complaint
• EVT Evaluation Sampling Handling
• DVT • Incoming Material Inspection • Third-party
• PVT Inspection • First Pass Yield Testing
Standards (FPY) • Warranty
• Laboratory • Product Pass Service
Testing Yield
• Supplier Quality
Assessment
Standardization Measurement Inspection & Testing Certification & Accreditation Intellectual Property
Honor Electronic Quality Fundamental Management Framework
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Product Recall "Quality Month" Event Planning
Activity Target
To effectively safeguard product quality and consumer rights, as well as to uphold the Company's reputation, a comprehensive Item Activity Content Audience Activity Objective
recall management mechanism has been established by the Company. In accordance with regulatory documents such as the
Product Recall Management Regulations and the Non-Conforming Product Control Procedure , the Company has defined the
Quality QC Seven Tools, SPC, Six Sigma, FMEA, DOE, Enhance employees' quality awareness and
triggers for recalls, the execution processes, and the responsible parties, thereby ensuring that recall activities are conducted All Employees
Training and process documentation. quality management capabilities.
efficiently and in compliance. Recall methods are categorized into voluntary recalls and mandatory recalls. Furthermore, based on
the level of product risk, three tiers of recall are established: Tier 1, Tier 2, and Tier 3. A system of classified management according
to tier is implemented.
Regarding the organizational structure, the Marketing Center is responsible for monitoring, initiating and organizing the Quality
Conducted in the form of interactive games Combine learning with entertainment and
implementation of recall operations. The General Manager is responsible for approving the recall plan. Relevant departments, Knowledge All Employees
with participation from workshop teams. increase participation of frontline employees.
including the Engineering Center and Quality Center, shall cooperate in accordance with their respective responsibilities to Competition
implement specific disposal measures, thereby establishing a working mechanism characterized by clear allocation of authority
and responsibility and efficient inter-departmental coordination.
Identify Through departmental nominations and Encourage participation in quality control
Targeted at
In 2025 "Quality OA voting, select "Best Quality Proposal", through recognition, enhancing employees'
Production
Stars" "Outstanding Quality Proposal", and "Best initiative and engagement.
System
the supplier environmental agreement signing rate£º Around Us Quality Employee."
Organize frontline operators and inspectors Evaluate practical inspection capabilities
Inspection to participate in competitions covering Targeted at through job-related competitions, publicly
Skills defect identification, dimensional Production recognize outstanding performers, and enhance
the average product compliance rate of the Company was
Competition measurement, etc., and select winners System quality control capability.
based on results.
Submissions are not limited in form or Integrate quality culture with employees'
Quality
In 2025, the Quality Center focused on core capability development and organized nearly one hundred thematic training sessions. genre, including but not limited to quality talents to enhance engagement, interest, and
Works All Employees
The content covered key areas including ESD protection, safety standards, visual inspection certification, incoming material slogans, mottos, couplets, cartoons, participation.
Collection
control, and data traceability. Through systematic empowerment, quality awareness has been deeply embedded into every calligraphy, articles, and poems.
operational detail, laying a solid foundation for enhancing product yield and the stability of supply chain quality.
Quality Culture Construction Departments submit outstanding quality Promote and disseminate best practices to
Excellent
cases, which are evaluated by the Quality enhance quality awareness and a sense of pride
Quality All Employees
Center and shared with all employees via among employees.
Cases
Honor Electronic is committed to establishing an integrated "holistic quality" governance framework, embedding a quality the office system for learning.
mindset throughout the entirety of its business operations. The Company advocates a quality culture characterized by
"participation by all, responsibility assumed by management, and emphasis placed by leadership". A dedicated post has been
established to coordinate and advance the quality culture comprehensively. A mechanism for transmitting quality responsibilities
from senior management to grassroots levels has been instituted to ensure the effective implementation of the quality strategy.
Through the routine implementation of quality incentives and dissemination, the Company has fostered an atmosphere
characterized by striving for excellence and pursuing superior performance. This initiative drives all employees to actively
engage in quality improvement, transforming quality culture from a system-based constraint into conscious employee behavior.
Consequently, a solid foundation has been established for product liability and brand trust.
To continuously enhance the quality literacy and professional skills of employees, the Company has planned and implemented
a quality training matrix covering the entire career span. This includes induction training on quality knowledge for new recruits,
role-specific quality training, and specialized quality improvement training, thereby ensuring that employees at all levels possess
the requisite quality competencies to discharge their duties. Additionally, the Company regularly organizes a series of "Quality
Month" activities. Through knowledge competitions, case sharing, and skills contests, it strengthens the sense of participation in
quality among all employees. This approach deeply integrates quality culture construction with daily operation and management,
continuously driving the enterprise to achieve sustainable development centered on quality.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Premium Customer Service
Honor Electronic adheres to a customer-centric business philosophy, regarding superior customer service as an integral Definition of Major Reporting Time Requirements Handling Time Requirements
component of corporate governance and social responsibility. We have established a comprehensive customer value assurance Customer Complaints for Major Quality Complaints for Major Complaints
framework by implementing standardized complaint handling procedures and routine satisfaction tracking mechanisms to ensure
that customer feedback receives timely response and closed-loop management. Additionally, we strictly adhere to the principles
of responsible marketing to ensure that product promotional content is truthful and accurate, eliminate exaggerated claims,
effectively safeguard customer rights and market order, and continuously enhance brand image and customer trust. (1) Cases where the estimated (1) Major complaints must For major quality complaints,
potential direct economic be reported to immediate emergency countermeasures
loss may exceed RMB 10,000 supervisors and company must be provided within
Customer Service Management and may lead to customers leadership within 10 minutes; 3 hours, and an 8D report
transferring orders; along with relevant validation
(2) From customer feedback to progress must be delivered
Customer Complaints Management (2) Complaints from key Class closure of corrective actions, within 3 days.
A customers or complaints each handling process and
related to batch reliability progress must be promptly
issues; reported to the Customer
The Company has established a comprehensive customer complaint management system and Service Manager and directors
handling procedures, and strictly implements the "3-3-7" rapid response mechanism: (3) Other major complaints (and above) via email or in
identified by sales managers or person.
• Rapid response within 3 hours: Ensure customer feedback receives immediate attention. company leadership.
• 8D reports are submitted within 3 days: Systematically analyse the root cause of the issue.
• Issues are resolved within 7 days : Achieve efficient closed-loop management.
Major Customer Complaint Handling Mechanism
Through in-depth mining of complaint data and root cause analysis, specific issues were not only resolved but
also the lessons learned were fed back into internal process optimization and product quality improvement,
thereby continuously enhancing service efficiency and professional standards.
The Quality Center acts as the primary responsible unit, taking full responsibility for end-to-end
Quality Center follow-up of customer complaint resolution and analysis reporting, utilizing multiple approaches
such as QCC and analysis teams, while coordinating all departments to formulate corrective actions.
Customer
Complaint Every month, the Sales Center conducts satisfaction surveys for customers who have submitted
Satisfaction complaints and collects the reasons for customer dissatisfaction.
Follow-up
Every month, complaint rates categorized by responsible departments are reported to the Human
Performance
Resources and Administration Center for KPI evaluation, ensuring that customer complaints are
Management
handled effectively and in a timely manner.
Customer Complaint Handling Mechanism
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Customer Satisfaction Management
To precisely grasp customer requirements, the Company has established a routine satisfaction tracking and evaluation system. Showcasing Cutting-Edge Power Supply Technologies to Facilitate the Green Transformation of
Through various means including annual satisfaction surveys, in-depth client interviews and regular visits, we systematically Case
Data Centers
collect feedback from clients regarding product performance, service quality and the overall experience. Based on the results of
scientific evaluation and analysis, specific improvement measures have been formulated and implemented. Collaboration with
key departments, including R&D and Quality Assurance, has been established to drive the continuous iteration of products and From 9 to 11 September 2025, Honor Electronic showcased a range of high-performance, and high-efficiency server power
services. supply solutions at the 2025 Open Data Center Conference (ODCC 2025). During the exhibition, the Company presented its latest
technological achievements, aiming to support the industry's green and sustainable development through efficient and reliable
Additionally, the Company promptly communicates improvement outcomes derived from customer feedback to the relevant power solutions. In recognition of its long-standing commitment to product quality and customer value, Honor Electronic was
departments, thereby establishing a complete closed-loop mechanism comprising "collection - analysis - improvement - honored with the "ODCC Outstanding Partner" award, further demonstrating its technological innovation capabilities and industry
feedback". This customer value-oriented management model not only enhances the customer experience but also provides a responsibility.
solid market foundation for the Company's long-term sustainable development.
Customer Satisfaction Survey and Handling Process
Report Incorporate
Customer Dissatisfaction
Customer Satisfaction
Information Report Items into
Satisfaction Results at
Collection Preparation Company Lean
Survey Marketing Management
Meetings Projects
Verify
Establish a Formulate
Prevent Effectiveness of Root Cause
Closed-loop Improvement
Recurrence Improvement Analysis Honor Electronic participates in the 2025 Open Data Center Conference (ODCC 2025)
Improvement Measures
Measures
Continuous Improvement Deepening Industry Technical Exchanges to Explore the Transformation of Power Supply
Case
Architectures
Responsible Marketing On 7 August 2025, Honor Electronic showcased a range of high-efficiency power supply solutions tailored to AI and data center
In 2025 scenarios at the 2025 Open Compute Technology Summit (OCTS 2025), and was invited to deliver a keynote speech at the Green
Computing Development Forum sub-forum. Focusing on the theme of "AIDC-Driven Transformation of Data Center Power
Honor Electronic adheres to the principles of
Supply Architectures", the Company shared in-depth views on the evolving trends in power supply architectures amid the rapid
customer complaint resolution rate reached scientific and rigorous responsible marketing. It
development of AIDC, as well as its strategic planning and practical experience in core server power technologies, including
strictly complies with laws and regulations including
high power, high power density, high efficiency, third-generation semiconductor applications, and high-efficiency liquid-cooling
China, the Product Quality Law of the People's
design.
Republic of China, and the Provisions on the
Administration of Product Marking and Labelling.
customer satisfaction reached Upholding the criteria of authenticity, accuracy,
a n d t ra n s pa re n c y i n co m m u n i cat i o n , H o n o r
compliant, and verifiable across all stages, including
product promotion, sales communication, and
label management. The Company continues to
an increase of
strengthen responsible marketing practices, driving
management systems to comprehensively enhance
brand credibility and social influence. In 2025, the
percentage points compared to the previous year Company had zero marketing compliance violations
for the full year.
Honor Electronic participates in the 2025 Open Compute Technology Summit (OCTS 2025)
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Environmental Management Ecological Environmental Protection
Honor Electronic strictly complies with laws and regulations including the Soil Pollution Prevention and Control Law of the
Honor Electronic adheres to an environmental policy of "compliance with laws and regulations, pollution prevention, design and People's Republic of China, the Regulation on Groundwater Management, and the Opinions on Further Strengthening Biodiversity
manufacture of energy-saving and environmentally friendly products, continuous improvement, and harmonious coexistence Protection , fully integrating ecological protection requirements into all stages of project planning, production operations, and
with the environment", and has built an environmental management system covering the entire chain from strategic decision- base construction. During the project investment decision-making stage, the Company strictly implements the environmental
making to operational execution and supervisory assessment. impact assessment system. An environmental impact assessment is conducted for the site selection area, with a focus on
identifying and evaluating potential biodiversity risks. Specialized arguments are carried out for potential projects involving
ecologically sensitive areas to ensure from the outset that site selection avoids nature reserves and areas of high biodiversity
Environmental Management System concentration.
Honor Electronic has established a comprehensive environmental management system. The General Manager is responsible for In production and operations, the Company strictly adheres to pollutant emission standards, rigorously controls environmental
the overall coordination of environmental strategic planning and decision-making on major matters. Each department serves pollution arising from production activities affecting soil, water bodies, and the atmosphere, and effectively safeguards the
as the accountable entity for environmental management within its respective field, tasked with integrating management surrounding ecosystem.
requirements into daily operations to establish an organizational guarantee mechanism characterized by clear allocation of
responsibilities and effective execution. The Company has established a series of policy documents, including the Environmental During the Reporting Period, none of the Company's operational activities had an adverse impact on the surrounding ecological
Management Control Procedures, the Water, Air and Noise Control Procedures , the Energy Management Manual, and the Waste environment or biodiversity. None of the production bases are located within nature reserves or ecologically sensitive areas,
Recycling and Disposal Control Procedures. These documents clearly define the environmental management responsibilities and and no violations or complaints related to ecological protection occurred. In the future, the Company shall continue to deepen
authorities for posts at all levels, operational specifications, assessment criteria, and emergency response procedures, thereby ecological protection measures and actively explore synergistic pathways between production operations and ecological
constructing a complete management closed loop encompassing regulatory standards, process control, supervisory evaluation, conservation, thereby contributing corporate efforts to biodiversity protection.
and continuous improvement. The Company has not received any penalties related to environmental protection in the past three
years. Case Ecological Protection Practices at the Suzhou Base
Regarding target management, the Company has established quantifiable environmental indicators and implementation
pathways in accordance with the Environmental Objectives, Indicators and Plan Control Procedure, thereby providing The Company's Suzhou base is situated away from sensitive ecological areas, including the ecological protection red line, Taihu
clear management guidance to all departments. Through a routine statistical data collection and tracking mechanism, the important wetlands, and Tongli National Wetland Park, and lies within the Level 3 protected zone of the Taihu Basin. The base
Environmental Targets and Indicators Achievement Statement is compiled on a regular basis. Furthermore, in strict accordance strictly complies with the "Three Lines and One List" requirements as well as relevant regulations on water pollution prevention
with the Environmental Targets, Indicators and Plan Management Table , departments are directed to implement environmental and control in the Taihu Lake basin; no development or construction activities prohibited under these regulations are undertaken.
plans. By combining process control with outcome evaluation, continuous improvement of environmental performance is driven. Throughout production and operations, the base implements comprehensive pollution control measures: no industrial
wastewater is generated; domestic sewage is discharged into the municipal network for standardized treatment at the Yundong
In 2025, the Company's core production base continued to maintain a high level of environmental management system Sewage Treatment Plant; production exhaust gases are collected via hoods and treated through filter cotton and a two-stage
certification. Among these, the bases in Shenzhen, Dongguan, Vietnam and Suzhou have all obtained ISO 14001:2015 activated carbon adsorption system before being discharged in compliance with standards; hazardous waste is managed under an
environmental management system certifications, providing systematic assurance for environmental and material management. electronic consignment note system and entrusted to qualified entities for compliant disposal. Furthermore, the raw and auxiliary
materials selected for the base, including white glue and cleaning agents, all comply with the national limits on VOCs content,
The primary production base have obtained ISO 14001 certifications for its environmental management system thereby controlling pollutant generation at the source. Additionally, the base has strictly implemented management requirements
such as the separation of rainwater and sewage and the standardized storage of hazardous waste. Regular environmental
emergency drills are conducted, establishing a full-chain environmental management system that covers source prevention,
process control, and end-of-pipe treatment, thereby achieving synergistic development between production operations and
ecological protection.
Case Shenzhen R&D Center- Hechuang Building
During the construction phase of the Company's Shenzhen R&D Center project at
Hechuang Building, the Company adhered to green building principles, prioritizing
the organic integration of the structure with its natural environment from the planning
stage. In terms of landscaping design, the project has comprehensively selected native
plant species adapted to Shenzhen's local climate and soil conditions. The depth of
topsoil in planting areas and drainage performance have been strictly controlled to
ensure the long-term healthy growth of vegetation. Through the scientific optimization
Furthermore, to strengthen environmental awareness across the of plant configuration, the project has effectively enhanced the stability and self-
In 2025 sustaining capacity of the green ecological system, thereby creating a suitable habitat
workforce, the Company has established a routine mechanism for
environmental training and emergency drills. Employees are regularly the achievement rate of our for native flora and fauna. Upon completion of the project, public green spaces
instructed on industry standards regarding environmental safety and environmental protection training shall be made available free of charge to surrounding residents during office hours.
Aerial Perspective
hazard identification, alongside relevant case studies. Additionally, program was This initiative not only enhances the accessibility and utilization efficiency of urban
Rendering of
unannounced emergency drills concerning environmental pollution are green spaces but also provides robust support for regional ecological optimization
conducted to enhance the collective environmental consciousness and
emergency response capabilities of all employees.
achieving an organic integration of environmental and social benefits.
Hechuang Building
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Green Operations Case Energy-Efficient Aging Room Introduced at Suzhou Base
In 2025, the Company's Suzhou base deeply integrated energy conservation and
Honor Electronic has consistently upheld green principles, with low-carbon efficiency and circular recycling as core tenets, emission reduction concepts into equipment procurement and production operations. By
comprehensively integrated into every aspect of its production and operations. Through the enhancement of systems, introducing aging rooms equipped with air-source heat pump technology and intelligent
technological innovation, and management optimization, the Company has continuously improved resource utilization efficiency, temperature control systems, the traditional high-energy-consumption electric heating
reduced its environmental footprint, and promoted the transformation of operations toward low-carbon, intelligent, and circular solutions will be comprehensively replaced, thereby significantly reducing electricity
models, thereby establishing a practical benchmark for green development within the industry. consumption and carbon emissions at the source. In conjunction with the workshop's
seasonal planning, the insulation and heat dissipation strategies shall be flexibly
adjusted to further reduce energy waste. This transformation has not only enhanced Energy-Saving Aging Room
production stability but also significantly reduced carbon emissions throughout the
Energy Conservation and Emission Reduction operational process, achieving a win-win outcome of cost reduction and efficiency
improvement alongside low-carbon operations. This fully demonstrates the Company's
Honor Electronic strictly complies with the Energy Conservation Law of the People's firm commitment to driving energy conservation and emission reduction through green
Republic of China and the ISO 50001 Energy Management System standard. It procurement and actively advancing China's dual-carbon goals.
continuously refines its management system, which is centered on the Energy
Management Manual , to clearly define energy-saving responsibilities, operational
Case Suzhou Base Continues Advancing Its Photovoltaic Power Generation Projects
procedures, and assessment criteria for each department. By incorporating energy-
saving indicators into the operational performance assessments of each base and
conducting regular energy consumption monitoring and reviews, it is ensured that In 2025, the Suzhou base continued the construction of photovoltaic power generation projects. By fully utilizing approximately
all energy-saving measures are effectively implemented and yield tangible results, 6,500 square meters of concrete roof space, a photovoltaic power station with an installed capacity of 1,000 kilowatts was
thereby establishing a long-term management mechanism. Currently, the Dongguan commissioned.The system innovatively adopts a dual-grid connection scheme, connecting to 3 transformers within the industrial
base of Honor Electronic has obtained ISO 50001:2018 energy management system park. This approach effectively enhances the flexibility and stability of power supply, converting idle rooftop resources into
certification, and the Suzhou base completed the certification audit in April 2026 green assets.As of the end of 2025, the project had cumulatively generated 1.776 million kilowatt-hours of electricity in the year,
and is currently awaiting certificate issuance.Subsequently, we will accelerate equivalent to saving 710.3 tonnes of standard coal and reducing carbon dioxide emissions by 843.6 tonnes, thereby effectively
Dongguan Base ISO 50001 Energy
the certification process and continuously improve the effectiveness of energy lowering operating costs while achieving self-sufficiency in green power. It is estimated that the project will generate total energy-
Management System Certification
management. saving benefits of RMB 4.88 million over its full lifecycle (20 years), with an average annual cost saving of approximately RMB
In terms of technical transformation and energy-saving practices, the Company has formulated and implemented the Control carbon transformation.
Specification for Energy Conservation and Consumption Reduction , focusing on core energy-consuming production processes
such as ageing chambers and air compressors, as well as key auxiliary energy-consuming systems including lighting and air
conditioning. On the one hand, energy efficiency upgrades and replacements of production equipment are being advanced;
specifically, waste heat recovery retrofits are implemented for air compressors, and energy feedback technology is introduced
into ageing chambers to achieve closed-loop energy recovery at the source. On the other hand, energy consumption of auxiliary
systems, such as lighting and air conditioning, is reduced by introducing intelligent sensing control and variable frequency drive
technology. Furthermore, the Company has actively promoted the construction of distributed photovoltaic power generation
projects, increased the proportion of clean energy utilization, and further optimized its energy consumption structure. Through
the aforementioned measures, while ensuring a steady increase in production capacity, the Company has effectively reduced
energy consumption per unit of output value, achieving synergistic improvements in both economic efficiency and energy
performance. Suzhou Base Photovoltaic Project
Case Smart Energy-Saving System Deployed at Shenzhen Headquarters
An intelligent energy consumption management system, integrating intelligent monitoring, automatic control, and data
management, has been deployed at the Shenzhen headquarters office building to comprehensively advance energy conservation
and emission reduction through digital means. The system effectively avoids unnecessary energy consumption in unoccupied
areas by implementing precise zoning and automatic start-stop functions for air conditioning and lighting. By integrating various
control strategies, including sensor-based and timed controls, it accurately adapts to the usage requirements of different spaces.
Furthermore, it allows for the presetting of parameters to intelligently optimize air conditioning modes, temperatures, and
airflow rates, thereby minimizing operational energy consumption. Management personnel may remotely control equipment
via mobile devices to monitor operational status and space utilization in real time, adjust strategies accordingly, and reduce
unnecessary energy waste. Additionally, the backend conducts visual analysis of equipment operational data and trend variations
to provide data support for continuously identifying energy-saving potential and optimizing energy consumption behavior.The
implementation of this system has facilitated the transformation and upgrading of building energy consumption management
from passive control to active intervention, and from extensive operation to lean governance, thereby significantly enhancing the
effectiveness of energy conservation and emission reduction.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Water Resource Management Emissions Management
Honor Electronic strictly complies with water resource management regulations and standards applicable to its operating Honor Electronic treats compliance control of emissions as a core component of green operations and the fulfillment of
locations. It has established policies such as the Energy and Resource Control Procedures , integrating water conservation environmental responsibilities. It strictly adheres to laws and regulations such as the Atmospheric Pollution Prevention and
and efficient utilization into its comprehensive environmental management system.The Company has clearly designated the Control Law of the People's Republic of China and the Law of the People's Republic of China on the Prevention and Control of
Administrative center as the coordinating department for water resource management, responsible for indicator measurement Environmental Pollution by Solid Wastes, as well as national and industry standards including the Emission Standard for Industrial
and statistical analysis, and tasked with formulating annual water usage regulations based on historical water consumption data. Enterprises Noise at Boundary (GB 12348-2008) and the Standard for Pollution Control on the Non-Hazardous Industrial Solid
The Company continues to conduct water efficiency assessments and has advanced water-saving technological upgrades at its Waste Storage and Landfill (GB 18599-2020), in carrying out environmental management work.
primary production bases. Key process stages, including cooling and cleaning, have been optimized to reduce water consumption
at the source. Additionally, a water consumption monitoring system covering all manufacturing sites has been established to The Company has established policies including the Water, Air and Noise Pollution Control Procedures, the Chemical Pollution
dynamically track water intensity, ensuring that management measures are quantifiable and verifiable. Control Procedures and the Pollutant Discharge Control Procedures. These provide a clear basis for the prevention, control and
treatment of wastewater, waste gas and solid waste, ensuring the stable operation of environmental protection facilities and
In the course of daily operations, the Company undertakes water conservation and management initiatives from multiple aspects: achieving compliant discharge and standardized disposal of various pollutants. In 2025, the compliance rates for wastewater and
exhaust gas discharge outlets at the Company's primary production bases, as well as for boundary noise monitoring, were all
Water Conservation Maintenance of Water Critical Monitoring of Water
environmental violations related to emissions occurred.
Awareness and Training Supply Facilities Levels and Valves
Water-saving signage shall The Administrative Center Fire-fighting and air-conditioning water Wastewater Discharge
be displayed in water usage is responsible for the towers shall be designated as key monitoring The tap water used by Honor Electronic is supplied entirely by the municipal authority and is primarily used to meet the domestic
areas, such as restrooms, daily supervision and objects. Maintenance and inspection shall requirements of its operational bases. Domestic wastewater is collected via the sewerage system and undergoes preliminary
to remind employees of regular inspection and be conducted monthly to prevent overflow treatment in the on-site septic tank before being discharged into the municipal sewage network for further treatment and
the need for voluntary maintenance of facilities caused by excessive water levels or failure of discharge by the centralised municipal sewage treatment plant.
conservation. A rapid including the water supply control valves. Additionally, the delay valves
response mechanism for system, fire water pipelines, of washbasins shall be subject to regular To ensure the cleanliness of drainage in the production process, the Company
has installed oil-water separation units to effectively treat oily wastewater and In 2025
leak incidents shall be mains water pipelines, inspection. Valves exhibiting excessive delay
has implemented filtration for water used by air compressors, thereby ensuring the total volume of wastewater
established to ensure timely and taps. Operational or failing to reset promptly must be repaired
that relevant discharge complies with environmental protection requirements. discharged by the Company
detection, reporting, and procedures must be or replaced without delay to ensure that
Additionally, the Company has fully implemented the separation of rainwater amounted to
repair. strictly standardized, and water facilities remain in good working order
thorough inspections shall
be conducted to identify
and to achieve efficient utilization of water
resources.
and sewage systems, achieving independent collection and separate discharge
of rainwater and domestic wastewater. This effectively mitigates the impact on 267,628.40
cubic meters
operational hazards. the surrounding community environment and enhances the standardization and
environmental compliance of the site drainage system.
Waste Gas Management
Optimizing Intelligent Systems to Advance
Case Water Resource Management
Honor Electronic has established a comprehensive waste gas management system covering the entire process of monitoring,
control, and governance. By establishing clear control standards and operational guidelines, it ensures that the waste gas
treatment process is under control and that end-of-pipe emissions consistently meet compliance requirements.
In 2025, we further optimized the intelligent energy-saving system
by comprehensively upgrading traditional water meters at Shenzhen The Company continues to improve its waste gas collection and treatment facilities. Waste gases generated during the production
In 2025
headquarters to intelligent monitoring devices. This initiative enables process are collected via pipelines and conveyed to the roof, where they undergo purification treatment through a two-stage
the automatic collection, real-time upload, and centralised management the Company's total water activated carbon adsorption system, thereby achieving effective control. Additionally, the Company regularly commissions
of water usage data. It eliminates errors potentially arising from manual consumption amounted to qualified third-party testing agencies to monitor emissions from all exhaust outlets at its primary production bases, ensuring that
meter readingand makes water consumption fully visible, measurable, and
optimisable throughout the entire process. Consequently, this provides a
robust data foundation for precise water conservation and reduced water
In terms of operational management, the Company has established a routine recording and tracking mechanism and improved
cubic meters equipment operation ledgers. In accordance with the Standard Operating Procedures (SOP) for equipment operation and legal
consumption, thereby advancing water resource management toward
refinement and intelligence. and regulatory requirements, abnormal situations are promptly analysed and corrective actions are implemented to ensure the
continuous and effective operation of the waste gas management system.
Case Upgrade of Waste Gas Treatment Facilities at Dongguan Base
In 2025, in response to the requirements of the new national standard and to further enhance purification efficiency, the Company
undertook a forward-looking upgrade of its waste gas treatment facilities at the Dongguan base. According to the opinion of
a professional environmental protection company and the requirements of the using department, the number of secondary
activated carbon adsorption units in the core treatment unit was expanded from 4 sets to 7 sets (with 2 additional sets under
construction), significantly enhancing the waste gas treatment capacity. Additionally, honeycomb activated carbon with superior
adsorption performance was comprehensively adopted to replace traditional granular carbon, significantly enhancing the
capacity for adsorbing and capturing characteristic pollutants such as volatile organic compounds (VOCs), thereby fully fulfilling
the enterprise's environmental compliance responsibilities.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Waste Management Circular Economy
The Company relies on its system of policies, including the Chemical Pollution Control In 2025, Honor Electronic further deepened its refinement of waste management and practices in the circular economy. Building
Procedure, the Pollutant Discharge Control Procedure, the Waste Recycling and Treatment upon the existing classification system, the Company has implemented a more granular categorization of recyclable materials,
Control Procedure , and the Hazardous Chemicals Control Procedure, to define classification including packaging materials, cardboard, plastics, wire and cable, and off-cuts, thereby continuously enhancing resource
criteria, collection processes, storage requirements, and disposal specifications for recovery and utilization rates.
recyclable waste, non-recyclable waste, and hazardous waste. This ensures that all stages of
waste management are conducted in accordance with established regulations.
Case Suzhou Base Practice on the Reuse of Packaging Boxes
Additionally, the Company has also established the Environmental Objectives, Indicators
and Scheme Control Procedure, which clarifies targets for waste reduction and control
pathways, thereby continuously promoting waste minimization and resource recovery. In
Waste to Landfill system, achieving zero waste to landfill. The relevant certification work nearby suppliers and customers to
Dongguan Base UL2799
at the Suzhou base is also being advanced steadily, reflecting the Company's positive establish a system for the circular reuse
Certificate
achievements in the standardized disposal and recycling of waste. of packaging boxes. Boxes are delivered
to users by suppliers; upon completion of
use, they are collected and subsequently
recycled for further reuse. This achieves
Waste Classification Disposal Method a closed-loop flow of "delivery¨Cuse¨C
collection¨Creuse", effectively promoting
The waste disposal operator sorts recyclable general waste and collects it at efficient resource circulation within the
designated locations. industrial chain and enabling sustainable
operations.
Upon reaching a specified period, the administrative center shall liaise with the
Recyclable general waste procurement center to arrange for disposal by the designated contractor.
(referring to waste that is non-
hazardous and suitable for Waste is processed on a regular basis and recorded in the Waste Disposal
Registration Form . Reuse of Packaging Boxes
recycling and reuse)
To maximize energy conservation and consumption reduction, it is necessary Shenzhen Headquarters Pilot of Circular Economy Model: Driving Value Reconstruction of
to manage recyclable waste. The Company's general recyclable waste primarily
Case Waste through Full-Process Traceability and Internal Resource Circulation
comprises: used office paper, waste plastic, scrap metal, copper wire, cardboard,
discarded electronic components, and tin dross.
In 2025, the Company adopted Shenzhen headquarters as a pilot site. By establishing mechanisms for weighing and clocking in
solid waste and retaining data trails, full-process traceability of waste was achieved. Regarding recyclable samples, the "breaking
shells for sale" approach was implemented to ensure compliant disposal while enabling the recovery of resources at a value.
Non-recyclable general waste Non-recyclable general waste generated by the Company is disposed of as
Furthermore, a "Resource Recycling Corner" has been established to facilitate the internal circulation of idle items and cultivate a
(waste that is not hazardous domestic refuse and transported daily by waste disposal personnel to the
culture of thrift that maximizes the utility of resources. At the operational site, the Company achieved standardized management
but has no value for recycling) dedicated waste station established by the management office.
by delineating functional zones and implementing classified fixed-position storage. This not only enhanced efficiency and safety
but also further unlocked the latent value of waste resources.
The Administrative center periodically disposes of hazardous waste and engages
Hazardous waste (waste that
qualified third-party units to carry out such disposal. The entrusted units are
is hazardous but has no value
required to undergo a "Capability Assessment for Hazardous Waste Operation
for recycling or reuse)
Enterprises" and comply with multiple company policy requirements.
In 2025
the total volume of non-hazardous waste the total volume of waste recovered and
generated by the Company amounted to processed by the Company amounted to
Sample implemented "Shell-Breaking and Disposal"
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Green Office
Climate Change Response
The Company has promoted the concept of green office practices by implementing measures such as switching off lights when
leaving and placing office equipment into low-energy sleep modes. These initiatives aim to guide all employees in participating in
Honor Electronic has adopted the 1.5 ¡ã C temperature control target of the Paris Agreement as its guiding direction and referred
energy conservation and consumption reduction, as well as saving materials.
to policies such as China's Action Plan for Peaking Carbon Emissions Before 2030 . The Company is systematically advancing
climate-related financial disclosure work. In accordance with the recommendations of the Task Force on Climate-related Financial
The quantity and power rating of lighting fixtures in office areas, production sites, and living quarters shall
Disclosures (TCFD) and under the guidance of the Board's Strategy Committee, it has initiated TCFD framework preparation work,
be reasonably configured. Independent switches must be installed to prevent lights from being left on
including the establishment of a climate risk management system and the exploration of scenario analysis. The Company is
unnecessarily, ensuring that lights are switched off when personnel leave.
committed to establishing a standardized, transparent, and sustainable climate governance and disclosure mechanism. It aims to
Priority shall be given to the acquisition of energy-saving equipment or products certified by the State, fully integrate climate-related risks and opportunities into its existing ESG management system to enhance climate resilience and
and priority shall be accorded to the adoption of environmentally friendly and energy-efficient electrical improve strategic foresight.
appliances and equipment;
Energy
Conservation All departments shall configure office equipment such as computers, printers, and photocopiers to
automatically enter a low-power sleep mode when not in use. Equipment that remains unused for
extended periods must be switched off promptly to reduce standby consumption, and power switches
must be turned off before the end of the working day. Climate Risk Governance Framework
We encourage staff to run air conditioning one hour less per day, and not used during public holidays or
when only a minority of employees are working overtime. Furthermore, negative performance appraisals Under the overall leadership of the Board of Directors, the Company has established a clear three-tier governance structure:
shall be instituted for violations of these regulations. the Board Strategy Committee exercises decision-making functions, the ESG Working Group is responsible for organization and
coordination, and each business unit carries out specific execution, thereby ensuring that climate-related issues are implemented
Promote paperless office operations to reduce the consumption of office stationery; layer by layer and effectively advanced within the governance framework.
Printers and photocopiers shall be used reasonably; waste paper and second-hand paper must be promptly
placed in recycling bins.
Materials used for maintenance shall be budgeted and planned by the relevant departments according to
their categories, with consumption controlled and reduced.
Management of Climate ChangeRisks and Opportunities
Conservation
A replacement-for-old scheme is implemented for components used in maintenance activities; recoverable
Honor Electronic has identified and distinguished climate-related risks and opportunities, analyzing their potential impact on
of Materials
components shall be recovered and disposed of to the fullest extent possible.
the Company's business model, operational activities, strategic development, financial performance, cash flows, and cost of
Official vehicles are used strictly in accordance with the vehicle management system to enhance utilization financing. On this basis, the Company comprehensively assessed the likelihood, impact magnitude, and transmission pathways
efficiency. Vehicles are subject to unified designated maintenance and repair arrangements, scientific of various risks and opportunities, and prioritized them. At the same time, the Company further assessed its strategic and
determination of per-vehicle fuel consumption quotas is implemented, efforts are made to reduce fuel business model adaptability to climate change and, based on that assessment, developed transition plans and specific mitigation
consumption, and expenditure on vehicle maintenance costs is minimized. measures.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Time Types of Climate-Related Time
Types of Climate-Related Risks Risk Description Financial Impact Response Measures Opportunity Description Financial Impact Response Measures
Period Opportunities Period
The increasingly Advance energy-saving
In accordance By optimizing management Resource consumption
comprehensive framework Compliance
with the Shenzhen retrofitting of core systems
of corporate sustainability management costs practices, implementing in production and office
Stock Exchange Enhance The such as lighting, motors,
disclosure standards have risen; however, if
ESG guidelines and the low-carbon technologies, operations has decreased,
Policy and imposes more stringent ESG compliance standards Medium- Resource Efficiency and air compression; Short-
TCFD framework, a and replacing energy-saving resulting in direct cost savings
Reporting disclosure requirements are met, brand
Legal Risks sustainability report is term Efficiency of Resource deploy an intelligent energy term
Obligations on enterprises; failure to premium may be equipment, the Company from energy conservation
published on a regular Utilization consumption management
disclose relevant information generated, partially
basis to enhance the is able to effectively reduce and consumption reduction
in a timely manner may offsetting the cost system; and implement green
climate information costs. throughout the year.
expose enterprises to pressure.
disclosure system. office practices.
compliance risks.
The dual-carbon strategy
Leveraging the R&D
The dual-carbon policy Increased investment has driven the low-carbon Continuously develop high-
system and innovation
requires enterprises to in short-term research
platforms, the focus transformation of the energy-efficiency and low-
undertake a low-carbon and development and The increased proportion
Low-carbon transition, necessitating is placed on low-
equipment retrofitting Products Green industry in which the carbon products, integrate
carbon technology of revenue from green Medium-
Technology investment in the will, over the long term, Long-term and Products and Company operates and environmental design
development to
Transition research and deployment optimize operating products has driven overall term
drive energy-saving Services Services facilitated the introduction of into the entire product
of energy-saving and costs through energy revenue growth.
retrofitting and green
environmental protection conservation and products more aligned with lifecycle, and promote green
transformation in the
technologies. carbon reduction. dual-carbon policies through certification of products.
production process.
Transition Technology
Optimize the R&D technological innovation.
Risks Risks The dual-carbon policy has R&D expenditure
model, prioritizing The Company's active
driven rapid development has increased on a Optimize the global capacity
Investment within the industry in the deployment of
phased basis; however, implementation of
cutting-edge low- layout and local team
Risk which the Company should the technology sustainable development Growth in international
carbon technologies
operates; consequently, be successfully building to ensure that
Associated and product Long-term International strategies can further market orders and revenue, Short-
the Company is required commercialized into Market products and management
with New architecture upgrades,
to actively invest in new products, it would Markets enhance its international with accelerated expansion term
while strengthening systems comply with
Technologies technology research and enhance product
technical reserves reputation and meet the of overseas operations.
development to maintain competitiveness and international environmental
and conversion sustainability concerns of
its market position. drive revenue growth. standards.
capabilities.
international clients.
Establish a sustainable Establish a climate
Difficulties in The Company's principal The risk of volatility supply chain system Operational stability has governance framework
suppliers of raw materials in raw material by incorporating ESG The Company's adaptive
the Supply been enhanced and the risk coordinated by the
may face more stringent procurement costs may criteria into supplier capacity in relation to
Market of Raw requirements for energy be mitigated by a green onboarding and Medium- Corporate of cost fluctuations reduced, Board of Directors, refine Short-
conservation and supply chain, which assessment processes, Resilience climate change, to better
Risks Materials or term Resilience thereby driving synergistic mechanisms for identifying term
emission reduction under enhances stability and while maintaining manage associated risks
an Increase growth in revenue and profit risks and opportunities,
sustainability-related controls long-term multi-supplier and seize opportunities.
in Costs mandates. costs. backups for core over the long term. and dynamically optimize
materials. response measures.
Costs associated with
The corporate Establish and
emergency prevention
headquarters is implement emergency
and control and
susceptible to typhoons management systems
loss remediation
Short-Term Typhoons and flooding. Climate for typhoon and flood Medium-
have increased;
change has increased prevention, improve
Risks and Floods however, effective term
the probability of the emergency facilities
implementation of
Company suffering from at production bases,
preventive measures
such disasters and the and conduct regular
can significantly
associated losses. emergency drills.
mitigate sudden losses.
Upgrading the factory
Physical High temperatures may Costs associated with building's refrigeration
cause overheating of equipment cooling and system and energy-
Risks An Increase production equipment or employee welfare have saving equipment,
in Average impairment to employee increased; however, and implementing Long-term
Temperature health, thereby affecting production continuity measures for
production efficiency and is ensured through employee heat
Long-Term incurring additional costs. facility upgrades. protection and health
Risks assurance.
Formulate a special
The Company is located at
Rising expenditure on emergency plan for
Rising Sea a low altitude and in close
flood control facilities flood control and
proximity to the sea; rising Long-term
Levels and increasing costs of strengthen flood
sea levels may exacerbate
disaster losses protection measures at
flood risks.
the production base.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Emergency Response to Extreme Weather Greenhouse Gas Emissions Management
Honor Electronic attaches paramount importance to the potential impact of extreme weather on business continuity and The Company has established policy documents, including the Energy Consumption and Greenhouse Gas Emission Control
operational stability and has established a systematic emergency management framework for extreme weather events.In Procedure and the Greenhouse Gas Accounting Control Procedure, to systematically standardize the accounting and management
accordance with the RBA Code of Conduct and relevant management requirements, the Company has established special of greenhouse gas emissions.
contingency plans and policy documents, including the Typhoon Season Storm Emergency Plan, the Typhoon and Storm
Prevention Management Procedure, the Stormwater Management Control Procedure, and the High-Temperature Heatstroke At the direct emission level, the Company's emissions primarily originate from the combustion of vehicles required for business
Prevention Emergency Plan. These measures comprehensively cover warning response, handling processes, and division of operations. Consequently, the scale of fuel consumption, such as petrol and diesel, is directly linked to the Company's Scope 1
responsibilities under extreme weather conditions, ensuring that the emergency mechanism is scientific, responses are timely, carbon emissions, and the Company maintains continuous monitoring and reporting regarding the utilization of such fuels.
and controls are effectively implemented.
At the level of indirect carbon emissions, the Company primarily relies on purchased electricity to support its daily operations,
office activities, and the operation of certain new energy vehicles. Accordingly, the Company monitors and quantifies purchased
electricity and heat to assess its Scope 2 greenhouse gas emissions. On this basis, it will continue to improve its carbon accounting
practices and systematically advance its decarbonization planning and actions.
Suzhou Base Conducts Extreme Weather Drill to Fortify Flood Control and Heatstroke
Case Prevention Safety Defences
Our calculation has been conducted in accordance with the ISO 14064-
In 2025, to enhance operational response capabilities under extreme weather conditions, the Suzhou base closely adhered to the emissions, and selected value chain emissions. The Company engaged
Typhoon and Rainstorm Emergency Plan , organized special emergency drills, and issued the Minutes of Task Allocation in parallel. a third-party body to conduct carbon verification and completed the
This further delineated the emergency response responsibilities for each key position during extreme weather events such as carbon emission inventory for the Dongguan base in 2024, thereby
typhoons and rainstorms down to specific individuals, ensuring rapid reaction upon warning issuance and the implementation of obtaining a greenhouse gas verification statement. At present, the
appropriate measures. greenhouse gas verification for the Suzhou base in 2025 is ongoing. The
Company will continuously improve carbon emission data management
In response to health and safety risks arising from high summer temperatures, the base also conducted a desktop exercise for to provide a basis for emission reduction efforts.
the disposal of sudden heatstroke incidents in accordance with the High-Temperature Heatstroke Emergency Plan. By simulating
Declaration on Verification of Greenhouse
real-world operational scenarios, employees are organized to participate in the entire process of initial response, emergency
Gas Emissions from Dongguan Base
calling, and on-site first aid, thereby effectively enhancing their awareness of self-rescue and mutual rescue as well as emergency
response capabilities under extreme high-temperature conditions.Upon conclusion of the drill, a summary evaluation report
titled Summary and Evaluation of the Drill on the Emergency Response Plan for Acute Heatstroke Incidents was promptly issued.
Issues identified in relation to response timeliness, disposal procedures, and collaborative coordination shall be reviewed and
analyzed, and the emergency response plan shall be dynamically revised and improved accordingly. By establishing a closed- The Company's Scope 1 greenhouse gas emissions Scope 2 greenhouse gas emissions
loop management mechanism of "drill¨Cassessment¨Cimprovement", the Company continuously enhances its emergency response
capabilities under extreme weather conditions, ensuring that the emergency system remains in an active and optimized state.
tonnes of carbon dioxide equivalent tonnes of carbon dioxide equivalent
Desktop Exercise for the Disposal of Emergency Drill for Typhoon and Heavy Rainfall
Emergency Incidents Related to Heatstroke
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Safeguarding the Rights and Interests of Employees
To further implement the aforementioned employment principles, the Company has established special policies including the Procedures for
Management of Remediation on Prohibition of Child Labor and Misuse of Child Labor, the Procedures for Management of Prohibition of Forced
Labor, the Procedures for Management of Prohibition of Slavery and Trafficking in Persons, and the Procedures for Protection of Young Workers. On
the basis of ensuring fair recruitment, these measures strengthen special protection for young employees and vulnerable groups, thereby forming a
Honor Electronic places employee development at a strategic priority and has established a management system reviewed by systematic compliance management mechanism.
the Board of Directors and coordinated for implementation by the executive management. The Human Resources Center, as a
core functional department, is fully responsible for the establishment and implementation of systems pertaining to recruitment, In recruitment practices, alignment with the Group's corporate culture and values is prioritized as the primary prerequisite. In accordance with
training, remuneration and benefits, as well as promotion and incentive schemes. Dedicated human resources teams are the competency standards for each position, a comprehensive approach integrating diverse talent selection and assessment methodologies is
appointed for each subsidiary and business unit to ensure the effective implementation of policies and the continuous protection employed. Seven selection stages have been established, encompassing interviews, assessments, aptitude tests, background checks, probation
of employee rights. The Company systematically identifies and assesses the current status of employees regarding training and management, qualification evaluations, and the selection of key talent, to ensure the scientific rigour and strictness of the recruitment and selection
development, welfare protection, work-life balance, and overall satisfaction through methods such as questionnaires, employee process. Additionally, each center and business unit shall formulate and implement the manpower requirement plan for the forthcoming year in
interviews, and performance data analysis. This process facilitates continuous optimization of management practices and ensures accordance with the Company's medium-to-long-term human resources planning and the results of the annual talent review, thereby ensuring that
the effective safeguarding of employees' rights. talent acquisition and business development proceed in a coordinated and synchronous manner to continuously support organizational growth.
Furthermore, Honor Electronic has established a comprehensive employee performance feedback and communication mechanism, encompassing
Compliant Employment Management regular interviews, an online feedback system, and real-time feedback channels. A formal appeal mechanism is also in place to ensure the fairness
and transparency of performance management. These mechanisms ensure that employees can access and provide feedback through various
Honor Electronic continues to optimize its employment practices to ensure fairness, transparency and compliance in key areas channels, thereby facilitating two-way communication. Furthermore, they offer a formal avenue for the resolution of objections, safeguarding both
such as talent acquisition, development and promotion, thereby providing employees with a healthy, safe and growth-oriented the fairness of performance appraisals and the rights of employees.
working environment.
Compliant Employment
Honor Electronic has consistently adhered to the recruitment principles of "openness, fairness, competition, and selection of
the best". A series of management systems, including the Human Resources Control Procedure , the Employee Handbook, the
Recruitment Management Regulations, and the Recruitment Management Process , have been established to ensure that the During the Reporting Period
recruitment process is compliant and reasonable. In the recruitment and talent management process, we adhere to the following
core employment principles: the Company was
not involved
in any form of employment discrimination or
forced labor
Fairness and Transparency
Responsible Business Alliance (RBA) Certification
To ensure equal employment opportunities and career development prospects for all, the Company
of the Dongguan Base
adheres to principles of fairness, equity, and openness in its recruitment and staffing practices. In talent
assessment, educational background, professional skills and work experience are comprehensively
evaluated to ensure the transparency and fairness of the selection process.
Prohibition of Child Labour
The Company strictly complies with all applicable national and international laws and regulations
prohibiting the employment of minors under the age of sixteen.During the recruitment process,
applicants are required to provide their identity card information and relevant supporting documents.
Systematic verification is conducted to ensure compliance with statutory working age requirements.
Prohibition of Forced Labour
The Company is committed to eliminating all forms of forced labor and ensuring that employees work
in a free and voluntary environment. We respect and safeguard the lawful labor rights of our employees.
All employment contracts comply with legal requirements, and we strictly prohibit forcing employees to
engage in work against their will.
Prohibition of Human Trafficking
The Company firmly opposes all forms of human trafficking and slavery. It strictly scrutinizes recruitment
channels and the qualifications of intermediaries to ensure that all employee on-boarding is based on
lawful and voluntary principles, thereby safeguarding the fundamental human rights of employees.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Equality and Diversity Employee Remuneration and Welfare
Honor Electronic adheres to the principles of diversity, equality and inclusion, and is committed to providing fair and non-
discriminatory employment and development opportunities for all applicants and employees. We have strictly formulated and
implemented management procedures including the Female Worker (Pregnant) Protection Management Procedure, the Freedom Remuneration Management
of Association and Collective Bargaining Management Procedure , the Religious Belief Management Procedure, and Prohibition
of Discrimination, the Anti-Harassment and Humanitarian Treatment Management Procedure. Throughout the recruitment, The Company actively upholds its core values of "pragmatism and integrity" and "continuous innovation". In alignment with
selection and daily management processes, we have consistently adhered to the principles of fairness, impartiality and equal its cultural characteristics and the actual needs of employees, it continuously refines its remuneration and benefits system to
treatment. In advancing diversity and inclusion practices, we prioritize providing pragmatic support to employees from diverse enhance employee job satisfaction and organizational belonging.
backgrounds. This includes supplying bilingual HR process documentation for overseas employees and respecting the customs
and cultural requirements of expatriate and ethnic minority employees within management arrangements, such as coordinating We have established the Compensation Management Regulations, the Performance Management Regulations, the Wages,
working hours for employees with prayer obligations. Allowances and Benefits Management Procedures, and the Employee Welfare Benefits Management Regulations. A systematic
and multi-tiered compensation incentive system has been constructed, forming an incentive matrix covering short-, medium-, and
long-term horizons. This achieves an integrated combination of short-term incentives and long-term development.
Statistics on the Number and Proportion of Employees by Gender, Age, and Educational Qualification Welfare and Care
We adhere to the principle of "people-oriented". On the basis of achieving universal welfare coverage for all employees, we have
constructed a diversified welfare system that balances comprehensiveness and differentiation by comprehensively considering
In 2023
recognized and rewarded by the Company.
Total
Number of
In 2024
Beyond robust welfare provisions, we are committed to cultivating a workplace environment characterized by warmth and care.
Employees In 2025
exercises, the spiritual and cultural life of employees is continuously nurtured, ensuring that warmth is conveyed through
interaction. The Company has further established a routine communication and feedback mechanism. Through a combination of
online and offline channels, including annual commendation ceremonies, regular departmental meetings, cross-departmental
meetings, and employee suggestion boxes, the Company sincerely listens to the views of every employee, accurately identifies
and responds to their concerns, and continuously enhances employee satisfaction. Additionally, the Company has established
Number of Proportion of Proportion a trade union organization to support employee representatives in attending board meetings, thereby effectively safeguarding
employees Employees of Employee employees' rights to information and participation, and steadily advancing the process of democratic management within the
by gender by Age by Education
enterprise.
in 2025 in 2025 Level in 2025
Honor Electronic Diversified Welfare System
Number of Male Employees£º3,001 Employees aged 18¨C29 (%)£º42.96 Diploma or below (%)£º84.51
Basic welfare benefits provided to employees in accordance with the laws and regulations of the State
Number of Female Employees£º2,564 Employees aged 30¨C49 (%)£º53.51 Bachelor's degree (%)£º13.80 Statutory
and local governments include pension insurance, medical insurance, unemployment insurance,
Benefits
Employees aged 50 or above (%)£º3.52 Master's degree or above (%)£º1.69 work-related injury insurance, maternity insurance and the housing provident fund.
Universal The Company provides security benefits and services to all employees, including paid leave, health
Benefits insurance, departmental team-building activities, and Spring Festival travel subsidies.
The Company provides benefits tailored to specific festivals and employee groups, including pension
schemes for parents of key talent, festival cash allowances, health check-ups and training benefits for
Special
Benefits
key and important talent, group accident insurance, and others.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Promotion of Employee Development
Honor Electronic attaches paramount importance to the professional growth and capability enhancement of its employees. A
International Women's Day Event
systematic and multi-tiered employee development framework has been established, which supports continuous progress in
professional skills, management capabilities, and overall quality through customized training programs, clear career progression
pathways, and diversified growth platforms. Leveraging the construction of a "learning organization", the Company promotes
knowledge sharing and the inheritance of experience. This initiative stimulates employees' intrinsic motivation, facilitates the
realization of individual value alongside enhanced corporate innovation vitality, and achieves the synergistic development of both
employees and the organization.
Employee Training
In accordance with the Training Management Regulations, the Training Management Procedures, and the Internal Instructor
Management Regulations , a training system has been established to support the joint development of the enterprise and its employees.
With the objective of serving corporate interests and supporting employees, the Company respects employees' individuality and
aspirations for growth while ensuring its own stable development. Employee competence and skills are continuously enhanced
through diversified training programs. The training content encompasses three core modules: knowledge, skills, and competencies.
A blended approach combining internal training, external assignments, and self-directed learning is adopted to systematically cover
various aspects, including induction training for new employees, job-specific skills training, general capability enhancement training,
and professional domain knowledge training. By formulating and effectively implementing an annual training plan, the objective is to
continuously supply the Company with qualified managers and professionals.
Dragon Boat Festival Event Training Policy
Training Objective
A combination of self-training and peer
Comprehensive training for all employees
training, integrating job skills training
and lifelong learning.
with professional knowledge training.
Case Leadership Development Program
To address the management challenges arising from rapid
business growth, the Company has initiated an executive
leadership enhancement program, focusing on building
a leadership pipeline equipped with strong leadership
capabilities. The project integrates the outdoor situational
experience Ice Melting, the indoor systematic course Logical
Methods for Building High-Performance Teams , and action
learning oriented toward practical application. Approximately
Mid-Autumn Festival Event 50 senior executives and high-potential talents participated
throughout the entire process. They deepened collaboration
through wilderness challenges, upgraded their management
cognition via theoretical learning, and conducted three-stage
action learning centered on genuine business challenges. The
project has yielded significant outcomes. 90% of participants
achieved self-awareness and cognitive breakthroughs; 85% Outdoor Activity Ice Melting
were able to systematically diagnose team development stages
and formulate improvement strategies; and 80% have already
applied tools such as the 5F questioning technique and four-
level reconstruction in their work to drive the implementation
of improvements. A total of 38 projects were delivered, of
which 86% achieved the expected objectives. Certain teams
have already completed internal retraining and knowledge
dissemination, effectively facilitating the implementation of
"learning while doing" and "doing while learning", as well as
the organizational learning mechanism, thereby consolidating
Indoor Course Logical Methods for Building High-
replicable methodologies and management practices.
Performing Teams
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Case Gold Medal Interviewer Program Career Development
The Company has established the Promotion Process and the Qualification Management System to construct a clear career
In response to recruitment challenges such as low retention rates during probationary periods and substandard talent quality,
development pathway and a continuous growth support system for employees. Through a systematic mechanism for talent
the Company has introduced a three-line integrated interviewer empowerment system comprising the "Problem Line", the
acquisition, development, motivation, and promotion, we fully unleash employees' potential and creativity, thereby driving the
"Empowerment Line", and the "Value-Add Line". The project, with the Shenzhen headquarters as its hub, systematically
coordinated development of employee careers and organizational growth.
implements a dual-track training program for interviewers and certifiers, establishing a complete closed loop encompassing
capability enhancement to system replication. Through deep senior management engagement, dual-role empowerment, a
dual-assessment mechanism, and AI knowledge base support, the implementation of evaluation criteria is ensured alongside Recruitment and Retention of Talent
continuous improvement. The initiative has achieved significant results. Between 2024 and 2025, the turnover rate for new
employees decreased from 51% to 22%. A total of 99 certified interviewers and 8 certified evaluators were trained, and 8 Honor Electronic continues to refine its talent "selection, development, utilization, and retention" mechanism, strengthens
standardized courses were developed. A replicable global rollout model has been established, effectively enhancing the precision quality control over recruitment, systematically enhances the precision and sustainability of talent acquisition, and effectively
of organizational talent selection and laying a solid foundation for sustainable talent development. provides a solid talent foundation for the Company's long-term stable development.
In 2024, Honor Electronic implemented a restricted share incentive plan, with the initial
Equity grant awarded to 196 participants in total. In January 2026, the Company completed the
Incentive first tranche of share vesting, with actual vesting for 185 individuals, achieving a vesting
Scheme rate of 94%. This effectively reinforced the role of equity incentives in retaining key talent
and delivering long-term motivation.
Gold Medal Interviewer Program Training The Company has established a corporate culture founded on mutual respect and unity,
A Harmonious
continuously enhancing employees' sense of belonging to foster cohesion through culture
Launch of the "Xiao Ou Academy" Platform to Promote Digitalisation of Training and
Corporate
Case and retain talent.
Normalization of Learning
Culture
Competitive The Company offers competitive remuneration packages and maintains a comprehensive
Remuneration benefits system. Employees are entitled to all relevant statutory benefits and welfare
In March 2025, the Company officially launched and Benefits programs upon commencement of employment.
the digital learning platform "Xiao Ou Academy",
achieving online and scaled coverage of training
resources. As of the end of 2025, the platform had
A Fair Where a position becomes vacant, the Company shall prioritize internal recruitment and
select talent through open competitive selection to ensure that every employee enjoys an
Competitive
cumulatively listed 157 video courses, attracting
equal opportunity for fair competition.
Selection
The cumulative learning duration exceeded 11,600
hours, with an average per-employee online learning
duration of 7.3 hours, effectively supporting employee
A Robust The Company actively guides and supports employees in developing their career plans
by providing a dual-track development pathway comprising both management and
Platform
self-directed learning and organizational knowledge
professional sequences, thereby facilitating employees' diversified growth.
for Career
building. Development
Xiao Ou Academy
Based on interview performance and comprehensive assessment results, the Company
A Personnel has scientifically matched employees to suitable positions to ensure that personnel are
In 2025 Mechanism appropriately aligned with their roles. Additionally, by means of various mechanisms
such as internal recruitment and open competitive selection, the organization actively
That Effectively
the Company held over training covered identifies and
Utilizes talent promotes reasonable employee mobility, continuously optimizes talent allocation, and
steadily enhances job-role alignment and organizational effectiveness.
The Company provides comprehensive induction training and mentoring for new
employees to facilitate their rapid familiarization with the corporate environment and
total training hours reached with an average training duration of the actual number of
work processes, ensuring a smooth integration into the team. Additionally, the Company
participants reached1
regularly conducts various in-service training programs, encompassing internal training,
A Robust
Training
dispatched training, and instruction by external experts. Furthermore, corresponding
hours per employee System
subsidies are provided to employees who participate in qualification examinations or
pursue further academic studies, thereby continuously supporting employee growth and
development.
The statistical scope for the actual number of training participants includes both permanent and contract employees.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Assessment and Promotion
Safeguarding Safety and Health
To further strengthen its talent pipeline, the Company has established a dual-track
promotion system comprising parallel "Management Track" and "Professional
Track" pathways. This system defines qualification standards and selection Honor Electronic has consistently prioritized the health and safety of its employees,
mechanisms for key and critical talent. It is designed to match employees with upholding the principle of "prevention first, combining prevention with treatment",
suitable positions, guide them in continuously enhancing their competencies, and systematically established a comprehensive protection system covering
and encourage them to deepen their expertise in their respective fields, thereby production safety, occupational health, and physical and mental well-being. The
supporting capability building and career development. By standardizing the Company has continuously enhanced its workplace safety and health management
selection and development process, the Company systematically stimulates standards by refining systems, strengthening implementation, and promoting full
employees' motivation for growth and supports clear and sustainable career participation. Through comprehensive measures spanning risk prevention at the
progression along either the professional or managerial track. source, holistic health management throughout the entire process, emergency
response, and psychological support, the Company ensures the physical and mental
well-being of all employees, thereby providing a robust foundation for sustainable
development.
Dual-track Promotion System
Management Career Path Professional Career Path
Occupational Health and Safety Management
Management Track (M) Professional Track (P)
Safety Production Management System
Senior Management Honor Electronic has established a comprehensive occupational health and safety management system. By formulating normative
Specialist
Position documents such as the Safety Production Operation Management Procedures , the Safety Management Regulations, the System
for Responsibility Management of Safety Production and Occupational Health , the Occupational Health and Safety Management
Mid-level Management Procedures , and the Occupational Health and Safety Management Manual, it has clearly defined the organizational structure
Career Depth - Promotion
Expert and job responsibilities ranging from senior management to the execution level. The Chairman of the Board is responsible for
Position
formulating the safety strategy and coordinating senior management. Each business department, acting as the executing entity,
shall strictly implement daily management tasks including the formulation of safety regulations, organization of safety training,
Junior Management
Senior identification and remediation of hidden dangers, and risk classification and control. Furthermore, these departments shall
Position
regularly review the effectiveness of management to ensure continuous improvement.
Intermediate The Company's primary production bases have obtained ISO 45001 Occupational Health and Safety Management System
certifications, with their management capabilities recognized by international standards. Honor Electronic envisions zero fatalities
and zero major occupational diseases in its production operations. By implementing responsibilities across all personnel and
Junior strengthening process controls, it establishes a solid foundation for high-quality development.
The Company's primary production bases have obtained ISO 45001
occupational health and safety management system certifications
Career Breadth - Competition
In 2025
the Company promoted representing a promotion ratio of
Among the promoted
personnel, frontline management for technical staff for other personnel for
employees accounted for
In 2025
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Risk Assessment Conducting Nighttime Fire Emergency Drills to Enhance Emergency Response Capabilities
Case
The Company has established institutional documents, including the Procedure for Hazard Identification and Risk Assessment and During Critical Periods
the Procedure for Identification and Assessment of Risks and Opportunities , and has constructed a risk assessment and control
framework wherein the Chairman assumes overall responsibility, the EHS Committee executes operations, and all departments
collaborate. This framework provides a robust institutional and organizational guarantee for the systematic identification and In June 2025, the Dongguan base organized a semi-annual fire emergency drill covering all employees across the site. The drill
control of potential risks in production and operations, as well as for the assessment of occupational health risks. simulated a low-light environment at night and adopted a "training first, followed by practical operation" approach. Employees
were guided to personally experience extinguishing fire sources with fire extinguishers, which effectively enhanced their
The Company conducts regular annual identification of hazard sources and risk assessments, establishes a list of major hazard emergency response capabilities during special periods and laid a solid foundation for ensuring the Company's all-weather safe
sources, and formulates specialized management plans. Additionally, relying on professional institutions, it carries out periodic production.
on-site surveys and testing for occupational disease hazard factors. By integrating multi-dimensional information, including
employee health records and expert evaluations, the Company ensures that risk identification and grading are scientifically
accurate. Based on the risk assessment results, the Company continues to refine its hierarchical control mechanism and
regularly monitors tracking data to provide reliable support for subsequent prevention and control measures, thereby effectively
safeguarding employee health and safety.
Occupational Disease Prevention
Honor Electronic has established and implemented occupational disease prevention and management systems, including the
Occupational Disease Prevention and Management System and the Personal Protective Equipment (PPE) Management Procedure,
thereby constructing a comprehensive prevention system covering hazard notification, training and education, protective
measures, workplace environment management, health surveillance, as well as diagnosis and treatment. Through standardized
and regulated management mechanisms, occupational disease risks are minimized to the greatest extent possible, thereby
safeguarding employee health. In 2025, the Company continued to deepen occupational health initiatives, comprehensively
advancing the dual implementation of general health examinations and occupational health examinations. All employees
underwent general health examinations, and strict compliance was ensured regarding occupational health examination Fire Emergency Drill
requirements for employees in special positions. The incidence rate of occupational diseases for the full year was zero, thereby
effectively safeguarding the physical and mental well-being and occupational safety of employees.
Conducting Drills on Chemical Spills and Hazardous Waste Disposal to Strengthen Coordinated
Case
Response Capabilities for Environmental Emergencies
Case Training on Chemicals and Protective Equipment to Strengthen Employee Safety Protection Capability
In November 2025, the Dongguan base conducted an emergency drill for chemical leakage and hazardous waste disposal. The
In May 2025, the Dongguan base organized training on drill covered key roles including production auxiliary employees, warehouse managers, and production department employees.
chemical usage and personal protective equipment (PPE) It focused on core aspects such as leakage control, hazardous waste collection, and on-site decontamination, thereby effectively
protection. The training centered on the characteristics verifying employees' capability for on-site response and collaborative action in the event of environmental emergencies. On-site
of the Company's chemicals, with a focus on the correct inventory checks were conducted to verify the integrity and dedicated use of emergency supplies, including personal protective
selection, wearing protocols, and daily maintenance of equipment, fire extinguishers, and first-aid kits. It was reiterated that these items must be incorporated into the daily inspection
personal protective equipment, supplemented by practical checklist to ensure that emergency resources remain in a state of immediate readiness, thereby providing robust material support
demonstrations and on-site assessments. Through this for rapid response.
training, employees' awareness of safety protection and
practical operational capabilities have been effectively
strengthened, laying a solid foundation for the effective
application of labor protection equipment at work
sites and for consolidating responsibilities regarding
occupational health and safety protection.
Training Session on Labour Protection Equipment
Emergency Management
The Company has established an emergency rescue system covering production safety, environmental incidents, and urgent
medical care. It has formulated and implemented institutional documents such as the Production Safety Accident Emergency
Plan , the Emergency Preparedness and Response Management Procedure , and the Urgent Medical Assistance Management
Procedure to ensure the standardization of emergency response processes. On this basis, we further enhance employees' risk
prevention awareness and on-site response capabilities by regularly organizing multi-type emergency drills, including practical
exercises for firefighting, chemical spills, electric shock first aid, and elevator entrapment. All drills and response processes
were fully documented and incorporated into management reviews. Through a closed-loop mechanism of "drill-assessment-
improvement", the effectiveness of contingency plans was continuously optimized, thereby ensuring operational resilience and
safeguarding the safety and rights of stakeholders. Emergency Drill for Chemical Spill and Hazardous Waste Disposal
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Conducting an Emergency Drill for Electric Shock Incidents to Enhance Frontline Employees' Construction of Safety Culture
Case
On-Site First Aid Awareness and Safe Electricity Practices
The Company has established and adheres to the Safety Education and Training System , thereby instituting a routine training
mechanism covering areas such as work safety, occupational health, and fire safety. On this basis, the Company formulates an
In November 2025, in active response to the national Fire Safety Month theme of "Fire Safety for All, Life First ¨C Safe Use of Fire annual safety training plan covering new employee induction safety training, laws and regulations on work safety, and post-
and Electricity", the Dongguan Base organized an emergency drill for electric shock incidents. The drill adopted a "lecture plus specific safety operating procedures. Through stratified and classified training implemented across all employees, employees
practical exercise" mode. Safety knowledge regarding electricity usage and the correct application of insulating equipment were are assisted in comprehensively enhancing their safety awareness and risk management capabilities. Additionally, the Company
explained on-site. Furthermore, critical response procedures, including disengagement from electric shock, alarm activation, and regularly conducts safety publicity and education activities, organizes key personnel to participate in external skills training, and
first aid, were simulated to effectively enhance frontline employees' capabilities in emergency rescue and coordinated incident holds safety training sessions and knowledge and skills competitions during the annual "Safety Production Month" to verify and
management during sudden electrical accidents. This drill thoroughly embodied the theme of Fire Safety Month, effectively consolidate learning outcomes. Through institutionalized training, diverse activities, and on-site visual warnings and guidance,
validated the feasibility of the Company's electric shock emergency response plan, and further strengthened employees' the Company has integrated safety regulations into employees' daily operational behaviors, gradually establishing a long-term
awareness of safe electricity usage and the safety production defence line at the base. mechanism for safety culture founded on voluntary compliance and driven by continuous improvement.
Case Safety Production Month Activities to Enhance Safety Awareness Among All Employees
In June 2025, Honor Electronic responded actively to the national call for "Safety Production Month", organizing its four major
bases in Shenzhen, Dongguan, Suzhou and Ganzhou to jointly conduct the themed campaign titled "Everyone speaks of safety,
everyone is capable of emergency response ¡ª identifying safety hazards around us". The activity covered all employees, with
an employee participation rate of 100%. Through initiatives such as the "Safety Hazard Snapshots" campaign and knowledge
competitions, employee safety awareness and hazard identification capabilities were enhanced. This facilitated the closed-loop
rectification of hazards and fostered a safety culture involving all employees.
Electric Shock Emergency Drill
Conducting an Emergency Drill for Elevator Entrapment to Verify Collaborative Response
Case
Capabilities for Special Equipment Incidents
In October 2025, to enhance the response capability for emergency incidents involving special equipment, the Dongguan base Shenzhen Safety Production Month Activity
organized an emergency drill for trapped elevator passengers. The electrician team, security team, and the elevator company
participated in collaboration. The drill simulated a realistic failure scenario. Each team responded rapidly and cooperated
closely, successfully completing the rescue of trapped personnel. Through this exercise, the feasibility of the emergency plan
was effectively verified, multi-party collaborative response capabilities were enhanced, and a guarantee was provided for the
operational safety of special equipment at the base.
Emergency Drill for Elevator Entrapment Suzhou Safety Production Month Activity Dongguan Safety Production Ganzhou Safety Production Month Activity
Month Activity
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Physical and Mental Well-Being Care Government-Enterprise Collaboration for Free Health Clinics to Fortify the Employee Health
Case
Defence Line
Honor Electronic not only strives to create a safe and comfortable working environment but also assists employees in achieving
a sound work-life balance through systematic measures for physical and mental well-being. We regularly organize diverse health
In December 2025, the Dongguan Base, in collaboration with the Hongmei Town Health Bureau, the Community Health
promotion activities and continuously monitor the physical and mental well-being of our employees. We are committed to
Service Center, and Hongmei Hospital, jointly organized a free medical consultation event on the factory premises. A range of
fostering a positive and warm workplace culture, providing comprehensive physical and mental health support to our employees,
complimentary medical services, including Traditional Chinese Medicine physiotherapy, blood glucose testing, HIV screening, liver
and jointly building a healthy and sustainable work ecosystem.
function tests, lung function tests, and B-mode ultrasound examinations, were provided on-site, with enthusiastic participation
from employees. This initiative responded actively to Hongmei Town's call to bring its distinctive "Health Vice-Factory Director"
campaign into enterprises. It introduced professional medical resources into the factory premises, thereby strengthening the
"Vitality Circle" Health Initiative - Establishing a New Employee Health Management Model collaboration among government, enterprise and community, while enabling employees to access convenient and caring health
Case
Integrating "Exercise and Weight Reduction" services right at the factory gate. This effectively conveyed the Company's commitment to the physical and mental well-being of
its employees.
Honor Electronic actively responded to the national weight management campaign by launching the "Vitality Circle" health
promotion initiative in 2025. Centered on "exercise intervention + health management," the program promotes the goal of 150
minutes of moderate-intensity exercise per week. The initiative was implemented across four major bases in Shenzhen, Suzhou,
Ganzhou, and Dongguan, engaging a total of 165 employees. Through a closed-loop approach of "policy guidance, data tracking,
and outcome feedback," participants achieved an average weight loss of over 3 kg, with a maximum of 6 kg. Beyond improving
employee health, the program also enhanced cross-department collaboration and fostered a culture of health management
within the organization.
Health Free Clinic Event
Case Employee Team-Building Activities in 2025
In 2025, in order to deeply implement the corporate culture of "humanistic care" and assist employees in achieving a balance
between physical and mental well-being, the Group organized annual outdoor team-building activities for all subsidiaries and
functional departments under the theme "Unite with Purpose, Embark on a New Journey". Employees stepped out of the office
to take part in outdoor activities such as hiking and team challenges, reconnect with nature and relax. Through collaboration and
shared experiences, they strengthened their bonds and consolidated their collective strength for future endeavors.
Suzhou Base Team-Building Activity
"Vitality Circle" Badminton Competition
Case Shenzhen Headquarters Free Fitness Cards Support Employee Health Management
To encourage employees to develop a habit of exercise and enhance their physical fitness, the Shenzhen headquarters provides
free gym membership cards to all employees. Employees may utilize the partner gym located beneath the headquarters building
during break times to exercise, thereby alleviating stress and revitalizing their physical and mental well-being. This initiative
integrates health management into daily work and life, synergizing with the Company's "Vitality Circle" health campaign to jointly
foster a workplace atmosphere of "Happy Work, Healthy Life". It reflects the Company's pragmatic investment in and long-term
care for the physical and mental well-being of its employees. Team-Building Activities of Various Functional Departments
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Sustainable Supply Chain Full Lifecycle Management of Suppliers
The Company implements dynamic grading and differentiated management centered on supplier access, assessment, and exit
Supplier Management mechanisms. Through an integrated Supplier Relationship Management (SRM) platform, it achieves standardization, visualization
and closed-loop control across the entire process.
Honor Electronic has systematically integrated ESG principles into its supply chain management by establishing a management
system oriented toward green procurement and covering the entire lifecycle of suppliers. While ensuring procurement efficiency
and delivery stability, the Company has comprehensively integrated environmental protection, social responsibility, and business Supplier Selection and Admission
ethics requirements throughout the supplier on-boarding, procurement execution, evaluation, and empowerment processes,
thereby continuously enhancing the compliance, resilience, and sustainability levels of its supply chain.
The Company shall, based on actual needs and technical standards, prioritize selecting suitable candidates from the
Supply Chain Governance Framework existing list of qualified suppliers. If requirements cannot be met this way, it shall seek alternative resources from
The Company has established a comprehensive procurement and supplier management system. It has formulated and the wider market. Suppliers shall only proceed to the in-depth assessment stage upon successful completion of the
implemented procedural documents, including the Supplier Development Control Procedure and the Procurement Control preliminary document review.
Procedure , which clearly stipulate requirements regarding the compliance, transparency, and integrity of procurement
activities. These policies are regularly reviewed and updated to guarantee alignment with business development and regulatory An on-site audit is mandatory for all new supplier onboarding processes. The assessment scope encompasses multiple
requirements. Additionally, the Company has established a transparent procurement mechanism by formulating the Transparent dimensions, including quality, delivery, environmental protection, and corporate social responsibility. The Company
Procurement Platform Implementation Plan , adhering to the principles of "honesty and creditworthiness, quality priority, and has established mandatory ESG entry criteria, integrating environmental protection, pollution prevention and control,
reasonable pricing". Internally, all procurement employees are required to sign the Procurement Confidentiality and Integrity and occupational safety into its assessment framework to ensure that suppliers comply with sustainable development
Self-Discipline Commitment Letter , achieving a 100% signing rate, thereby reinforcing professional ethics at the foundational requirements from the source.
level. Externally, all suppliers are required to sign the Supplier Social Responsibility Commitment and the Integrity Guarantee,
During the on-boarding phase, new suppliers are required to sign documents including the Supplier Social Responsibility
working together to uphold a procurement environment built on the principles of "openness, fairness, and impartiality", thereby
Commitment Letter , the Restricted Hazardous Substances and Environmental Assurance Undertaking , the Insurance
extending commercial ethics and compliance responsibilities upstream throughout the supply chain.
Association Agreement , the Master Procurement Agreement, the Quality Agreement, and the Integrity Guarantee . These
At the organizational level, the Procurement Center, as the designated department for supplier management, collaborates with documents specify compliance responsibilities and obligations, ensuring that their commercial conduct aligns with the
other functional departments to conduct joint assessments of suppliers across multiple dimensions, including commercial, Company's standards and applicable laws and regulations.
technical, quality, environmental, and social responsibility criteria. Clear division of responsibilities among departments is
established for procurement, acceptance, warehousing, and accounting processes to ensure that procurement activities are
conducted in a standardized and orderly manner.
Supplier Evaluation and Annual Audit
The Company implements comprehensive supervision over procurement activities and conducts regular internal audits. Key
nodes, including the execution of procurement processes and supplier management, are subject to focused verification. Any
identified issues are rectified immediately. A multi-supplier mechanism has been established for core materials. Through The Company strictly adheres to the Supplier Development Control Procedure and implements a full-cycle, dynamic
competitive bidding and written price comparisons, comprehensive assessments are conducted based on cost, quality, delivery evaluation mechanism for key suppliers, integrating monthly tracking, quarterly assessments, and annual reviews.
capability, service level, and technical support, enabling the continuous optimization of procurement channels and enhancing
supply chain efficiency and risk resilience. During routine monitoring, statistical analysis is conducted monthly focusing on quality and delivery performance.
Quarterly comprehensive assessments are performed based on multi-dimensional performance metrics including
In 2025, during the onboarding of new suppliers and the re-evaluation of existing ones, no material ESG violations were identified. quality, cost, delivery, and service. Based on performance outcomes, the Company categorizes suppliers into four tiers,
This has effectively ensured the compliance and stability of the supply chain, as well as its resilience against global risks, providing designated A to D, and implements differentiated dynamic management, granting high-performing suppliers incentives
a solid foundation for the Company's continued business expansion. such as preferential order allocation, while underperforming ones are placed under a warning and support mechanism
or given a deadline for improvement.
Identification and Assessment of Supply Chain Risks
To ensure the security and stability of the supply chain, the Company has formulated and implemented the Risk Material Furthermore, the Company convenes an annual cross-functional review panel to conduct on-site reassessments of
Management Specification . Based on hazardous substance regulations and industry-specific risk characteristics, high-risk material critical and important suppliers using the Supplier Site Assessment Checklist . The review encompasses core areas
categories such as hardware, plastics, chemicals, and wire products are dynamically identified and placed under prioritized including quality control, engineering technology, order delivery schedules, environmental management, and
control. This establishes a multi-layered supply chain risk prevention and control system covering the entire process. corporate social responsibility. A comprehensive reassessment is conducted to ensure that the supplier's overall
capabilities remain aligned with the Company's development requirements.
Regarding cost risk management: The Company has established a comprehensive budgeting and operational analysis framework.
Through quarterly and monthly target decomposition, supported by comparative, ratio, and variance analyses, it achieves
dynamic monitoring of cost trends. This is linked to Key Performance Indicator (KPI) assessments, enabling rapid response to
anomalies and prompt corrective actions. Simultaneously, a cost fluctuation early warning mechanism has been constructed to
Supplier Exit
track key variables in real time, including raw material prices, exchange rate fluctuations, and labor costs, thereby enhancing risk
prediction capabilities.
For suppliers that fail to meet commercial, quality, or technical requirements even after undergoing corrective
Regarding supply chain assurance: The Company has implemented a supplier diversification strategy to ensure that at least two to
measures, the Company strictly enforces an exit mechanism and proceeds to disqualify and remove them from the
three qualified suppliers are available for critical materials, thereby establishing a stable contingency mechanism. In the event of
approved list.
a sudden supply disruption, supplier switching can be completed within 48 hours, effectively safeguarding production continuity
and comprehensively enhancing resilience and risk resistance capabilities of the supply chain.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Case The Integrated Supplier Relationship Management (SRM) System Platform Green Procurement Practices
To promote sustainable development, Honor Electronic has integrated green principles into its procurement processes,
continuously advancing green procurement practices and facilitating resource recycling across the upstream and downstream
In 2025, Honor Electronic comprehensively upgraded and supply chain. We collaborate closely with suppliers to identify material recovery potential at the source. Through process
launched its Supplier Relationship Management (SRM) system. optimization and technological synergy, we systematically promote the recycling of packaging materials and logistics containers,
The system covers all key stages of the supplier lifecycle, achieving coordinated improvements in resource conservation, cost reduction, and environmental benefits.
from supplier on-boarding, order coordination, change
management, and inventory monitoring to supplier exit, and
Case Green Procurement - Shell Transport Frame Recycling Project
integrates eight core functions, including environmental
documentation management, drawing issuance, PCN
approval, approval document upload, shortage tracking, To implement the objectives of green supply chain construction and achieve simultaneous improvements in cost reduction,
and EOL information updates. Through this systematic efficiency enhancement, and environmental protection, the Company has initiated a project with its suppliers to recycle transport
platform, the Company has further promoted standardization, frames used for product housings. To address the issues arising from the single-use nature of existing transport frames, which
visualization, and controllability of supplier management, can easily become idle and be discarded after a single use, thereby increasing warehousing pressure and environmental costs,
significantly enhancing overall supply chain coordination and both parties have jointly established recycling standards. These standards define the criteria for determining recyclable items and
Supplier Relationship Management (SRM) System
operational control. set out the relevant procedures. Furthermore, designated collection warehouses were set up alongside a regular door-to-door
transfer mechanism, thereby establishing a closed-loop recycling system.
At the same time, the Company carried out cross-departmental training with suppliers to ensure that operational and acceptance
procedures are implemented in a standardized manner. Upon implementation of the project, recovered transport frames were
In 2025 inspected and partially reused, thereby effectively reducing new procurement requirements and waste disposal expenditures,
resulting in a significant reduction in overall costs. The project has deepened the Company's collaboration with suppliers
The Company audited a achieving a with an average score exceeding regarding material circular management, providing replicable experience for subsequent rollout to other material categories and
total of over contributing to the establishment of a sustainable supply chain ecosystem.
coverage rate for core suppliers
To continuously enhance supply chain quality and compliance levels, the Company routinely conducts supplier training. This
Following the Company's audit of suppliers, it was confirmed that there were no non-compliant items involves systematic interpretation and practical guidance on quality management standards, laws and regulations, and the latest
regarding ESG violations and no corruption incidents related to suppliers industry dynamics. The initiative aims to help suppliers accurately understand compliance requirements and industry trends,
thereby enhancing their self-management capabilities and risk identification skills while jointly building a more resilient and
The Company had a The localization ratio of The proportion of procurement sustainable supply system.
total of over suppliers was from localized suppliers was
In the third quarter of 2025, the Company held the Honor Electronic Supplier Environmental Management Conference. The
meeting focused on four key categories¡ªinductors and transformers, casing sockets, cables, and PCBs¡ªand, through targeted
training, addressed the Company's latest policies and regulations on hazardous substance management while sharing industry
best practices. This initiative aimed to strengthen product quality and environmental compliance at the source, reinforce
collaborative control across the upstream and downstream supply chain, and comprehensively enhance suppliers' environmental
awareness and management capabilities. The training achieved 100% coverage of key suppliers and empowered nearly 200
partners in total, laying a solid foundation for building a sustainable green supply chain.
Supplier Environmental Management Conference
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Management of Hazardous Substances Management of Conflict Minerals
Honor Electronic has established a hazardous substance process management system spanning the entire product lifecycle, Honor Electronic has consistently upheld the principles of responsible procurement and deeply implemented supply chain due
with the aim of ensuring environmental safety of products and fulfilling corporate environmental responsibilities. The Company diligence management. The Company strictly adheres to the requirements set forth in the OECD Due Diligence Guidance for
strictly complies with international environmental regulations such as the EU RoHS and REACH directives, as well as standards Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and Section 1502 of the US Dodd-Frank Act,
set by domestic and overseas clients. It has established the Hazardous Substance Process Management Manual and adopted a and has established the comprehensive Conflict Minerals Management Measures. We have conducted full lifecycle tracing for key
management policy of "compliance with regulations, pollution reduction, continuous improvement, environmental protection, materials including tin, tungsten, tantalum, gold, and cobalt. Through continuous supply chain due diligence and risk assessment,
and no acceptance, manufacture, or release of hazardous products". Furthermore, we have established clear annual targets, the Company ensures that the origin of resources is legal and transparent, and strictly prohibits any direct or indirect support for
including "zero environmental management failures" and "zero incidents of excessive hazardous substances in incoming armed conflict and human rights violations. In terms of supply chain collaboration, the Company has achieved 100% coverage
materials", and formulated the HSF Material Control Standard . To support this, a comprehensive set of procedural documents has in obtaining signed Conflict Minerals Survey and Undertaking from key suppliers, ensuring that minerals sourced from conflict-
been established covering the entire process from supplier assessment and raw material inspection to non-conforming product affected areas or in violation of the Company's policies are not used within the supply chain.
control, thereby forming a systematic and closed-loop operational framework. The hazardous substance management systems at
the Company's major production bases have obtained the international IECQ QC080000 certifications. Currently, Honor Electronic's production processes do not involve the use of 3TG mineral resources. In the future, Honor
Electronic will continue to optimize its dynamic supplier onboarding and exit mechanisms to promote sustainable and compliant
development of the global electronics supply chain.
The Company's Major Production Bases have Obtained QC 080000 Certifications for the Hazardous
Substance Process Management System
Responsibility Management
The Company has established a clear two-tier management system comprising the Group and the factories. The Group
Quality Center is responsible for the unified leadership and oversight of the hazardous substances management
system, issuing Group-wide control documents that all factories are required to strictly implement. Responsibilities
for hazardous substance management are distributed across relevant business departments: the R&D center is
required to prioritize environmentally friendly materials and conduct HSF assessments during material selection; the
Procurement Department is responsible for supplier HSF reviews; and the Quality Center, together with its subordinate
IQC Laboratory, assumes the core execution functions covering incoming inspection and process monitoring to final
release.
Digital Control
On the front of the supply chain, supplier environmental agreements and third-party test reports are managed via the
SRM system. Materials are classified by risk level, with pre-configured sampling inspection rules established in the
ERP system; test results are automatically evaluated and uploaded, while environmental traceability codes are written
back to ERP documents, thereby achieving full-process data traceability from suppliers to internal inspection. For non-
compliant HSF products, the HSF Non-Conformance Control Procedure is strictly implemented to ensure segregation,
traceability, and the implementation of corrective actions by suppliers.
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Community Engagement and Social Contribution Case Conveying Seasonal Warmth and Empowering Community Well-being
In 2025, the Company, utilizing traditional festivals as a medium,
actively engaged in the development of community cultural
Honor Electronic has consistently upheld its original aspiration of proactively giving back to society and conveying care, deeply
life and the provision of care for people's livelihood. During the
integrating social responsibility into the enterprise's development strategy and practice. We remain committed to deeply
Dragon Boat Festival and Mid-Autumn Festival, the Company
integrating into community development through a systematic and diversified approach, conveying corporate warmth through
not only donated special funds to the community to support
inclusive co-construction, and jointly creating and sharing value.
the organization of festive cultural activities such as preparing
zongzi and mooncakes, dragon boat racing, and neighborhood
In supporting national major strategies, the Company has actively responded to the call for rural revitalization by adopting a
gatherings, but also organized employee volunteers to visit the
"purchase-based philanthropy" approach. It has procured agricultural products from underdeveloped regions in a targeted
community to deliver festival greetings and invited residents to
manner and leveraged its own channel resources to facilitate promotion. This has effectively contributed to increasing farmers'
participate in the interactive festival activities, fostering a warm
income and fostering the self-sustaining capacity of rural industries, thereby making a significant contribution to consolidating
and harmonious community atmosphere. We have carried forward
poverty alleviation achievements and promoting coordinated urban-rural development.
fine traditional Chinese culture through concrete actions and
In deepening community co-construction, the Company has remained rooted in its local community and established long-term conveyed corporate warmth via sustainable engagement methods.
partnerships with municipal sub-districts and public welfare organizations. We regularly organize teams of employee volunteers This has fostered neighborhood interaction and community
to visit communities to provide routine care and support. During traditional festivals, we organize themed events and invite integration, while continuously contributing positive efforts toward
community residents to participate, extending corporate goodwill directly into the fabric of societyand strengthening community building a more cohesive and humanistic community ecosystem.
bonds.
Furthermore, the Company encourages and supports employees to participate in various social public welfare projects in the form
of voluntary service, thereby internalizing philanthropy and charity as an integral component of corporate culture. We believe
that an enterprise's value is demonstrated not only by commercial achievements but also by its tangible contribution to social
welfare. In the future, the Company will continue to explore pathways for fulfilling its social responsibilities, cultivating expertise
in multiple areas including philanthropy and charity, community service, and environmental protection. Collaborating with all
sectors of society, it aims to co-create a brighter future.
Case Procurement of Agricultural Products to Assist Farmers
The Company actively responded to the call for rural revitalization by integrating
social responsibility into its supply chain practices. Prior to the Mid-Autumn Festival
in 2025, the Company invested a cumulative total of over RMB 400,000 to procure
high-quality and distinctive agricultural products, including "Dinosaur Plum Melon"
under the Xinjiang Qianjiangke brand and Sichuan Daliangshan Tunisian Soft-Seed
Pomegranate, as benefits for employees. This initiative has precisely supported Dragon Boat Festival and Mid-Autumn Festival Activities
the development of regions such as Xinjiang and Daliangshan's characteristic
agricultural industries while promoting product branding and supply chain
optimization, thereby assisting in the construction of a sustainable rural industrial Case Community Co-Building During the Safety Production Month
ecosystem. The Company has put into practice the public welfare philosophy of
"purchase to support and sell to promote production" through concrete actions, During the Safety Production Month in 2025, the Company collaborated with the Nanhua Mingzhu Garden community, where its
demonstrating its corporate responsibility to drive local development with Products Supporting Agriculture headquarters is located, to jointly conduct fire drills and emergency response exercises. Through these practical drills, the fire
commercial power and achieve symbiotic prosperity with the society. safety awareness and emergency response capabilities of both residents and employees were enhanced. Not only did this exercise
strengthen the collaborative link between the enterprise and the community in the field of security prevention, but it also extended
the enterprise's safety management experience to the surrounding communities, thereby contributing to neighborhood safety with
professional capabilities. This reflects the Company's active fulfillment of its corporate social responsibilities and its contribution to
building a safe and harmonious community environment.
Community Emergency Drill
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Appendix ESG Data Indicator Performance Table
Environmental Performance
ESG Metrics Index Key Performance Indicators Unit 2025
Total environmental protection
Ten thousand RMB 1,370.86
investment
Total water consumption Cubic meters 297,365
Dimension Material Topics Corresponding Chapter Total quantity of non-hazardous waste
Tonne 1,640.31
generated
Tonne 69.80
generated
Tonne 54.07
and processed
Tonne 895.50
recovered and processed
Total volume of wastewater discharge Cubic meters 267,628.40
Environment Petrol Liter 55,476.60¡¡
Tonnes of carbon dioxide equivalent
Scope 1 greenhouse gas emissions ¡¡189.07
Tonnes of carbon dioxide equivalent
Scope 2 greenhouse gas emissions 35,153.29
Social Performance
Total number of employees Person 5,565
Number of male employees Person 3,001
Number of employees with disabilities Person 12
Proportion of employees aged 18-29 % 42.96
Society 14. Equal Treatment of Small and Medium-Sized Proportion of employees aged 30-49 % 53.51
Sustainable Supply Chain
Enterprises Proportion of employees aged 50 and over % 3.52
Proportion of employees with a master's
degree or above
Coverage rate of the five social insurances
Safeguarding the Rights and Interests of Employees; % 100
and one housing fund
Safeguarding Safety and Health Employee training coverage rate % 95
Total duration of employees' training Hour 105,091
Average number of hours of training
Hour 12
Sustainability
Governance The number of employees subject to
regular performance appraisals
Governance as the Innovation-Driven Climate Governance Talent Development and Linked Responsibility Chains
About Honor Electronic Foundation for Sustainability Development, Quality First and Green Operations Shared Workplace Prosperity and Shared Value Creation
Social Performance
Key Performance Indicators Unit 2025
Work-related injury rate % 0.32
Working days lost due to work-related
Day per million revenue 0.14
injuries per million revenue
Number of employee fatalities arising
Person 0
from work-related incidents
Number of R&D specialists Person 959
Proportion of R&D specialists % 17.23
Cumulative number of authorized patent
Item 245
projects
Cumulative number of invention patents
Item 30
obtained
Number of newly granted invention
Item 10
patents
Cumulative number of utility model
Item 177
patents obtained
Number of newly granted utility model
Item 26
patents
Cumulative number of design patents
Item 38
obtained
Number of newly granted design patents Item 13
Number of software copyrights Item 103
R&D-to-Revenue ratio % 6.70
Customer satisfaction % 98.4
Number of resigned employees Person 3,029
Employee turnover rate % 36.03
Localization ratio of suppliers % 68.83
Proportion of local procurement % 54.4
Governance Performance
Key Performance Indicators Unit 2025
Proportion of independent directors % 33.33
Proportion of female directors % 33.33
Proportion of independent non-executive
% 66.67
directors on the Audit Committee
Proportion of independent directors
on the Remuneration and Appraisal % 66.67
Committee
Proportion of independent directors on
% 66.67
the Strategic Committee
Proportion of independent non-executive
% 66.67
directors on the Nomination Committee
Number of public announcements issued Copies 160
About Honor Electronic
Ê×Ò³
΢ÐŹ«ÖÚºÅ
֤ȯ֮ÐÇAPP
