Stock code: 301330
SUSTAINABILITY REPORT
Website: www.zkteco.com
Phone: 0769-82618868
Address: No. 32, Pingshan Industrial Road, Tangxia Town, Dongguan, Guangdong, China
CONTENTS
Standardizing Governance to Build a Empowering Collaboration to Co-create
Solid Foundation for Development a Thriving Ecosystem Appendix
Introduction to the Report 91
Innovation-driven 43 Index 91
Standardizingcorporategovernance 21
About the Report 01
Supply chain management 50
Protecting rights and interests of investors 25 Feedback 93
Address by General 03 Product and service safety and quality 55
Manager Commercial conduct 27
Data security and privacy protection 63
About ZKTeco 05
Sustainable 13
Development
Management
Low-Carbon Transition, Leading Green Joining Forces and Advancing
Development Together to Build a Better Society
Occupational health and safety 71
Responding to climate change 31
Protecting the legitimate rights and 76
Environmental management 34 interests of employees
Resource management 37 Employee training and development 83
Public welfare and charity 87
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Introduction to the Report
Introduction to the Report
About the Report
Introduction Source
This report is the third SUSTAINABILITY REPORT (Environmental, Social and Governance (ESG) Report) released
The data in this report is sourced from the original internal ledger, company documents, and audited statements of
by ZKTECO CO., LTD. This report, based on the principles of objectivity, standardization, transparency and
comprehensiveness, provides a detailed introduction to the practical measures and achievements of ZKTeco and its ZKTeco, and some financial data is sourced from the Company's 2025 annual report. Unless otherwise specified, the
branches and subsidiaries in environmental, social and governance (ESG) in 2025. monetary amounts involved in this report are measured in RMB.
Scope Names
Time frame: This report period is from January 1 to December 31, 2025 (hereinafter referred to as the "reporting
For ease of expression and reading, "ZKTeco", "Company", and "We" all refer to ZKTECO CO., LTD. Branches,
period"). In order to enhance the comparability of the report, some content may be appropriately traced back to the
reports of previous years or contain forward-looking descriptions. subsidiaries, and special nouns can be found in the definitions.
Terms Definitio
Organizational scope: This report is based on "ZKTECO CO., LTD.", including its branches and
Xiamen ZKTeco Xiamen ZKTeco Co., Ltd.
subsidiaries. Unless otherwise specified, the scope of this report is consistent with the Company's annual report.
Guangdong Zkteco ZKTeco (Guangdong) Co., Ltd.
Dalian ZKTeco Dalian ZKTeco Co., Ltd.
Longzhiyuan Shenzhen Longzhiyuan Technology Co., Ltd.
Basis BioCV Biometrics & Computer Vision
Shenzhen Stock Exchange Guideline No. 17 on Self Regulation of Listed Companies - Sustainable Development
Report (Trial)
Shenzhen Stock Exchange Guideline No. 3 on Self-Regulation of Listed Companies - Preparation of Acquisition
Sustainability Reports
Shenzhen Stock Exchange Guideline No. 2 on Self Regulation of Listed Companies - Normative
Operation of Listed Companies on the Growth Enterprise Board This report can be viewed and downloaded on the official website of the Company (www.zkteco.com), the website
China Enterprise Reform and Development Society's China Enterprise Sustainable Development of Shenzhen Stock Exchange (www.szse.cn) and CNINFO (www.cninfo.com.cn).
Report Guidelines (CASS-ESG6.0)
GRI Standards
Task Force on Climate-related Financial Disclosures (TCFD) Framework
Sustainability Accounting Standards Board (SASB) Standards
UN Sustainable Development Goals (SDGs)
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Address by General Manager
Address by General Manager
In 2025, as generative AI rapidly integrates with industry scenarios, the global digitalization process enters a new chapter Driving Technology for Good to Empower a New Smart Security Ecosystem. The Company always upholds the
of collaboration and symbiosis. ZKTeco, as a leading enterprise in multimodal BioCV technology, while continuously mission of "AI cognition makes spaces smarter and the world better", continuously promotes the integrated
driving technological breakthroughs and business empowerment, integrates the concept of sustainable development more innovation of multimodal BioCV technology with AI, IoT, and big data, and by deepening industry-academia-
deeply into corporate operations and strategic decision-making, actively fulfills its responsibilities to shareholders, research cooperation, accelerates the tackling of key technical challenges in the industrialization of brain-
employees, the environment, and society, committed to creating secure, intelligent, and green digital identity and smart computer interfaces, bringing more cutting-edge achievements to the market; regards product quality and
scenario solutions, and creating long-term, shared, and sustainable value. information security as the lifeline of its development, builds a strict quality management system covering the entire
product lifecycle, fortifies information security defense barriers, improves data security management mechanisms,
effectively safeguards customer privacy and data asset security, and earns the long-term trust of customers and
Reinforcing Governance Foundations, Leading to New Heights of Integrity and Compliance. The society with reliable technology and services.
Company continuously promotes the modernization and upgrade of its corporate governance, ensuring the
foresight and scientific rigor of strategic decisions; comprehensively strengthens the construction of its risk Gathering Talent to Jointly Build a Community of Happiness and Responsibility. The Company always adheres
management and internal control systems, integrating compliance requirements into the entire chain to a people-oriented philosophy, continuously improves talent development and rights protection mechanisms,
of business operations; and always maintains open and transparent communication with investors, improving the and creates equal development opportunities for employees. We establish clear career development
quality of information disclosure, and firmly upholding ethical business principles, ensuring that operating activities paths for employees, and through systematic training programs, job rotation mechanisms, and mentorship systems,
are open, fair, and honest, and safeguarding the trust and rights of all stakeholders. we help employees enhance their capabilities and advance their careers. We offer competitive compensation
and benefits, comprehensive care initiatives, and transparent, fair, and democratic communication channels to
support employees in achieving work-life balance and a sense of accomplishment. Meanwhile, we actively fulfill our
Deepening Green Operations to Jointly Create New Pathways for a Zero-Carbon Future. The Company actively corporate social responsibility by conducting philanthropic practices globally, encouraging employees to participate in
responds to the national call for green and low-carbon development, continuously optimizing its volunteer services, and giving back to society through concrete actions. We continuously make charitable
resource management system, comprehensively promoting energy conservation, consumption reduction, and donations, contributing to community development and rural revitalization.
circular utilization, integrating green ecological design concepts into the entire lifecycle of product R&D, and
collaborating with supply chain partners to jointly advance carbon reduction; strictly adheres to environmental Looking ahead, ZKTeco will continue to uphold the concept of sustainable development, with technological
laws and regulations in its operating locations, establishes and improves a sound environmental risk innovation as the engine, responsible governance as the cornerstone, and the harmonious coexistence between humanity
prevention and emergency management system, strictly controls pollutant emissions, ensures compliant waste and nature as the vision, joining hands with global employees, partners, and customers to jointly move towards a more
disposal, is committed to minimizing the environmental impact of its operations, practices corporate green resilient, fairer, and more sustainable future.
responsibility, and leads the industry in sustainable development.
General Manager Jin Hairong
熵基科技股份有限公司 2025 SUSTAINABILITY REPORT About ZKTeco
Business introduction
The smart space business segment leverages AI cognitive space computing technology and multi-
dimensional perception capabilities to transcend the limitations of traditional entrance and
exit management. This innovation enables comprehensive awareness and intelligent enhancement
of people, vehicles, objects, and the environment. For applications in enterprise parks, office
Smart space buildings, educational institutions, healthcare facilities, and communities, we provide solutions
for traffic optimization, energy management, data analytics, and autonomous spatial decision-
making.
In the smart office segment, the Company is dedicated to enhancing work efficiency and
enjoyment. This business segment, which focuses on multimodal BioCV technology and IoT
About ZKTeco
perception, encompasses various scenarios including attendance tracking, visitor management, meetings,
and consumption monitoring. It offers intelligent solutions for time management, security
Smart office
oversight, and operational optimization tailored for enterprise and institutional clients. This
segment integrates AI-driven intelligent agents with cloud technology to develop advanced
time management solutions and establish a comprehensive smart office ecosystem.
About Us
The Company's digital identity authentication business seamlessly integrates multimodal
BioCV, advanced large models, and blockchain technology to establish a precise, secure, and user-
Company profile friendly identity authentication system, laying a robust foundation of trust for the digital
world. By harnessing the distinctiveness of biometric features, the advanced deep learning
Digital identity capabilities of large models, and the decentralized and immutable nature of blockchain
authentication technology, the Company's digital identity authentication services can ensure both precise
identity verification and robust data security.
ZKTECO CO., LTD. (stock code: 301330) was established in 2007 and listed on the Shenzhen Stock Exchange in 2022. The
Company is headquartered in Dongguan City, Guangdong Province.
The Company's smart business segment, propelled by multimodal models, emphasizes the
The Company is a smart space evolution service provider with AI cognition as its core driver. The Company integration of "AI + digital signage" within the general retail and catering sectors. This segment
applies multimodal BioCV (computer vision and biometrics) and AI cognitive space computing technologies to build supports traditional businesses in their transition towards intelligent ecosystems. It offers IoT
a comprehensive perception system, promoting the transformation of space from static management to autonomous infrastructure, digital solutions, and operational services, thereby establishing a new type of
Smart borderless retail platform that is comprehensive, scenario-inclusive, and fully integrated
decision-making and evolution, and bringing comfortable, intelligent, safe and sustainable scene experiences to global business across the supply chain. The products and solutions of this business segment cover digital marketing
customers. The Company has deeply laid out in the four strategic fields of smart space, smart office, digital screens, electronic price tags, AI shelves, smart shopping carts, as well as creative content, intelligent
identity authentication, and smart business, providing AI-empowered end-cloud integrated solutions to help customers customer service, digital marketing, and digital stores.
achieve efficiency leaps and value reshaping in the digital era. ZKTeco, relying on its profound accumulation in
algorithms, hardware, data, and scenario-based applications, has prospectively incorporated brain-computer interface into
the Company's long-term strategic blueprint. The Company conducts technology R&D and scenario verification around
areas such as work safety, health management, smart office, and human-computer interaction with focus on the integration The Company expands its smart living business scope, and provides diversified products
of brain-computer interface and multimodal AI technologies. including audio-visual equipment, optical equipment, and smart home products with focus on
smart outdoor and smart living scenarios, committed to creating comfortable, smart, and secure
Smart living full-scenario smart living experiences. Meanwhile, by combining its own brands with the ODM
During the reporting period, the Company acquired 55% of the shares from the original shareholders of Longzhiyuan
model, it provides global customers with full-chain services from ID design to
and obtained controlling interest in Longzhiyuan. This acquisition expands the Company's smart living business into outdoor manufacturing.
areas, enriching the product array in smart outdoor business scenarios.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT About ZKTeco
Corporate culture Honors and awards
The Company has been listed as one of the "Top 50 Global Security Companies" by asmag for six consecutive years from 2020 to 2025. In 2025, it
ranked 17th on the list and was awarded awards such as "Top 50 Innovation" and "Top 10 Brands in Smart Security" in 2025 Global Security
Industry Digital Innovation Ranking by asmag. It was recognized by the Department of Industry and Information Technology of Guangdong
Province as a "Guangdong Province 2025 Provincial Manufacturing Single Champion Enterprise" and a "Seventh Batch of Provincial Industrial
Mission and Vision Purpose
Design Centers". Since 2016, the Company has been awarded the title of "Top 500 Manufacturing Enterprises in Guangdong Province" by
Guangdong Manufacturers Association and other entities for 10 consecutive years (ranking 202nd in 2025). It was selected by the DC World
Our Mission Our Purpose Organizing Committee and relevant institutions as "2025 DC World · DC World Awards - Top 10 Brands (AI)" and "2025 DC World · DC World
AI cognition makes spaces Awards - Top 10 Brands (Security Inspection and Explosive Disposal)". It was awarded by the China Intelligent Transportation Systems Association
smarter and the world better. Everything is customer-oriented, with and the China Top 30 Intelligent Transportation Organizing Committee the "2025 14th Top 30 Intelligent Transportation Enterprises in
quality as the standard, and strivers as ITSMRS". It won the third place in the "2025 Top 10 Access Control Brands Award" by China Intelligent Building and other entities. At the
Our Vision 2025 China IoT Industry Conference and the 22nd Huicong Brand Festival, it was awarded the 2025 "IoT Platform Excellent Service
the foundation, continuously creating
A global leader in smart Award" and "Smart Passage Technology Innovation Award". It was awarded by the Brand Power Nation Pioneer Project Organizing Committee
value. the "2025 National Brand Light Program Selected Brand (ZKTeco)".
space evolution services
In terms of products and solutions, the MG100 multimodal biometrics channel control module, unattended scenario series solutions, and
ZKTeco Interconnection Cloud Platform received the "20th China Public Security Expo (CPSE) Golden Tripod Award". The ZKTeco Longhu series
swing barrier and smart cloud access control terminal were awarded the "China Top 10 Digital Security New Product Award". New
Generation Smart Scenic Spot Self-Service Ticketing Solution and Smart Security Inspection Solution won the "2025 Ping An Shenzhen
Construction Excellent Project Award"; "ZKTeco Mars Wisdom Platform" received the "a&s TOP Digital Products & Solutions" award. The
product "Facial and Palm Access Control Terminal Xpalm602" was selected by the GUANGDONG HIGH-TECH ENTERPRISE
ASSOCIATION as the "2025 Guangdong Provincial Famous and Excellent High-tech Product", and the Visible Light Facial and Fingerprint
Core Values
Access Control Terminal "nFace260" was selected by the Dongguan High-Tech Industry Association as the "Dongguan High-Tech Products of 2025".
Responsibility: Responsibility is an important indicator for ZKTeco to measure the spiritual quality of During the reporting period, Guangdong Zkteco passed the national high-tech enterprise re-certification and was recognized by
every individual, and it will also run through our mutual commitments to society, customers, partners, the Department of Industry and Information Technology of Guangdong Province as one of the seventh batch of SRDI "Little Giant" enterprises in
Guangdong Province; Xiamen ZKTeco obtained renewed certification certificates for ISO 9001:2015 Quality Management System, ISO/IEC
employees, shareholders, and other stakeholders in social relationships.
Integrity: Integrity and honesty are the most important and common values guiding the self-discipline of 27017:2015 Cloud Service Security Management System, ISO/IEC 27701:2019 Privacy Information Management System, and GB/T29490-2023
enterprise civilization upheld by ZKTeco, and are the cornerstone of all virtues. Integrity means Intellectual Property Compliance Management System.
being able to adhere to the right path and have the courage to admit mistakes. Integrity also means we must
adhere to our beliefs.
Seeking truth: The significance of seeking truth lies in being down-to-earth and pragmatic in one's career.
The basic connotation of seeking truth is to respect science and pursue truth. Fundamentally speaking,
seeking truth is to start from reality, boldly adhere to truth and science, and fearlessly correct errors.
Excellence: ZKTeco thinks excellence as becoming a world-class enterprise, innovating and serving as a
world-class enterprise. Continuously striving to become an outstanding enterprise is our
interpretation of the process of excellence. Perfection and detail are the best practices of excellence.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT About ZKTeco
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT About ZKTeco
Performance Highlights for 2025
Social performance
Business Performance
R&D investment Proportion of R&D personnel Cumulative number of
authorized patents
Operating revenue Net profit attributable to Total cash dividend
shareholders of listed companies (including tax) RMB 184.6081 27.57 % 1,193 items
million
RMB 2.133 billion RMB 214.7104 million RMB 97.5981 million
Product qualification rate Customer satisfaction via 400 Number of special training
hotline sessions on customer
complaint response
Governance performance 99.7% 99.51 % 86 times
Pass rate of assessments on Amount of investment in work Coverage rate of social
Proportion of Proportion of Punishments for violations of customer complaint response safety insurance
independent directors female directors information disclosure
Investor inquiry response
Employee training investment Employee training Labor contract signing rate
rate
sessions
Number of work safety Number of participants in practice and training on data
accidents security and customer privacy protection
Environmental Performance
Environmental investment Illegal and irregular incidents in Compliance rate of wastewater
the environmental field disposal
RMB 226.8 thousand 0 items 100% Number of training sessions on data security and customer privacy protection
Annual environmental
objective achievement rate
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Sustainable Development Management
Sustainable Development Management SDGs Content of SDGs Action of ZKTeco
Sustainable development goals (SDGs) and vision
Affordable and
Clean Energy
ZKTeco actively responds to the UN SDGs, adheres to and strives to achieve the mission of "AI cognition makes spaces smarter and the Ensure universal access to affordable, reliable and Optimize energy structure
sustainable modern energy
world better", creating greater value for customers and society. The Company has always placed green, low-carbon and high-
quality development in an important position, actively exploring the path of a new green circular economy, continuously
improving the level of sustainable development management to fully fulfill their responsibilities, and contributing to the
achievement of the UN SDGs.
Decent Work and
Economic Growth
Promote sustained, inclusive and sustainable economic growth, Adhere to equal
SDGs Content of SDGs Action of ZKTeco employment
achieve full and productive employment and ensure decent
work for all Protect employee
rights and interests
No Poverty Participate in social
Eradicate all forms of poverty throughout the world public welfare
Carry out volunteer
activities Industry, Innovation
and Infrastructure
Encourage R&D and
Build resilient infrastructure, promote inclusive and sustainable innovation
industrialization, and foster innovation Protect intellectual
property rights
Implement work
Good Health and Well-
being
safety measures
Ensure a healthy lifestyle and enhance the well-being of people
Protect occupational
of all ages
health
Responsible
Consumption
and Production Attach great importance to
Ensure sustainable consumption and product quality
production models management
Protect customer rights and
Quality Educatio
Provide smooth career interests
Ensure inclusive and equitable quality education and promote lifelong development channels.
learning opportunities for all Improve the employee
Promote energy conservation and
training mechanism
carbon reduction
Take urgent actions to address climate change and its impacts Promote green office practices
Encourage low-carbon travel
Identify climate risks and
Gender Equality Oppose gender opportunities
Achieve gender equality and empower all women and girls discrimination.
Care for female
employees Peace, Justice and
Standardize corporate
Strong Institutions
Promote peaceful and inclusive societies conducive to sustainable
development, provide access to justice for all, and build effective, governance
Adhere to compliant
accountable and inclusive institutions at all levels
operations
Clean Water and Adhere to business ethics
Sanitation
Persist in saving water
Ensure safe drinking water and sanitation facilities Achieve compliant
treatment of wastewater Build a sustainable
Partnerships for the
Goals
supply chain
Strengthen implementation measures and revitalize the global
partnership for sustainable development Adhere to responsible
procurement
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Sustainable Development Management
Sustainable development governance system Stakeholder communication
The Company values the rights and interests of stakeholders such as investors, customers, employees and partners.
Sustainable In the process of business development, the Company actively establishes various effective communication
development concept channels with stakeholders, understands and timely responds to their expectations and demands.
ZKTeco adheres to the concept of sustainable development, striving to achieve a comprehensive improvement in environmental protection, social
Stakeholders Communication Channels Expectations and demands Our response
responsibility, and corporate governance while pursuing economic benefits. We continuously strive to achieve more significant results in
environmental, social, and corporate governance aspects, thereby contributing to the sustainable development of society.
Investor hotline
Shareholders' meeting
Continuous and stable operation
Information disclosure Continuous and stable returns Strengthen investor communication
Easy to Interact Information transparency and disclosure Transparent information disclosure
Shareholders
Sustainable development and investors Investor on-site research
management mechanism Performance briefing
Operate in accordance with laws and Enhance corporate governance
Information reporting
ZKTeco, committed to long-term development, continuously improves its environmental, social, and corporate governance (ESG) system, regulations
Support local development Accept regulatory review
constantly optimizes its governance structure and control mechanisms, strengthens the Board of Directors' supervision and participation in the Work reporting
Company's sustainable development affairs, solidifies management responsibilities at all levels, and promotes cross-departmental collaboration in Government and Persist in protecting the
Protect the environment
regulatory agencies environment
fulfilling duties. The Company integrates sustainable development management into its overall enterprise risk assessment and management system,
continuously enhancing the operational level of sustainable development management. Simultaneously, it actively shares its theoretical Hotline
Product quality and safety Provide high-quality products
achievements and practical experience in the field of sustainable development with society. Company website and email
address Optimize customer service Provide high-quality services
Official WeChat platform
Customers Privacy and information security Respond to customer demands
Daily business communication
Company website and email
Sustainable development address Adhere to business ethics Build a responsible supply chain
Official WeChat platform
risk management Partners Honest cooperation Adhere to business ethics
Daily business communication
Training and development Conduct internal training
ZKTeco fully considers sustainable development-related impacts, risks, and opportunities during strategy implementation, risk management, and Labor union and
employee congress Basic rights and interests protection Ensure salary and benefits
major decision-making. It has established a comprehensive Risk and Opportunity Control Procedure, which clarifies the identification and
Seminar
assessment methods of risks and opportunities in the production and operation process. It is applicable to the planning and implementation of Health and safety Carry out occupational health
Employees Work assessment management
risk and opportunity response in activities, products and services within the quality/HSF/environment/occupational health and safety management Humanistic concern Employee care measures
system. The Board of Directors is responsible for the overall coordination and promotion of the Company's risk and opportunity management system
construction. Public welfare and charity Public welfare and charity
Carry out public welfare and
Volunteer services Publicity Community public welfare charity activities
Give back to communities
The Company refers to domestic and international standard requirements to establish a systematic and effective risk assessment and identification Community and visits Promote regional development
system. Relevant functional departments extensively collect internal and external information and promptly conduct risk identification to
ensure risks are controllable. The risks faced by the Company mainly include operational risk, technology and product innovation risks, and Public media Correct information disclosure Carry out timely, complete
internal control risks. On this basis, the Company, in accordance with procedural assessment criteria, classifies the severity and frequency of and accurate information disclosure
Platform media Maintaining good cooperation Strengthen daily communication
identified risks, and accordingly formulates corresponding risk response measures, continuously monitoring risk changes and the effectiveness of Media
Meeting Special interview Organize joint activities
implemented measures.
Daily communication Smooth communication channels Actively participate in industry
exchanges.
Industry associations Industry association Promoting the development of the Participation in industry standard
activities industry development
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Sustainable Development Management
Importance Issue Matrix of ZKTeco
Importance issue management Protecting the legitimate rights
Environmental compliance
management Data security and customer privacy
protection
and interests of employees
Energy utilization
Pollutant emissions Product and service safety and quality
Standardize corporate
Occupational health and With financial
With full reference to the "Shenzhen Stock Exchange Guideline No. 17 on Self Regulation of Listed Companies - Sustainable Waste disposal safety Innovation-driven
importance and
impact importance
Development Report (Trial)" (hereinafter referred to as the "Guideline"), and closely integrating the characteristics of the Shareholders' equity
protection
Employee training and
development
Water resource utilization Supply chain security
industry and the actual operation of the Company, the Company comprehensively assesses its performance in various related issues to Anti-unfair competition
Significance of economic, social and
Risk management
determine whether they will have a significant impact on the economic, social and environmental aspects (i.e., impact importance), With impact
and at the same time considers whether each issue will have a considerable influence on the Company's business model, Social Anti-commercial
Responding to climate change importance, without
environmental impacts
Stakeholder Communication
Contribution bribery and anti- financial importance
business operation, development strategy, financial position, cash flow, financing methods and costs, value chain, etc. (i.e., financial ESG governance
Tax compliance Circular economy
corruption
importance). Through the consideration of this dual materiality, and by referring to the relevant requirements of international
Ethics in science and technology
mainstream GRI Standards, a materiality analysis is conducted on the topics within the Company's topic library. The specific Rural revitalization
With financial
implementation steps are as follows: importance, without
impact importance
Issue Assessment Process Analysis Method
Ecosystem and biodiversity conservation
Without financial
importance or
impact importance
Step 1: Analyze based on the macro environment of global trends, the
Treating small and medium-sized enterprises (SMEs) equally
Understand the
development trends of China's industries, the industry the Company is in, and its
company background Due diligence
business model to identify the Company's stakeholders, the impacts, risks
and opportunities.
Financial Importance
Step 2:
Conduct preliminary By using the 21 issues set in the "Guideline" as the basis for the issue Importance Issue Matrix of ZKTeco
screening of issues list, referring to the relevant requirements of international mainstream
Issue
GRI Standards, as well as the relevant issues in the same industry, and Importance
aligning with the UN SDGs, establish the Company's 2025 ESG issue Environment Society Governance
library containing a total of 28 issues. Innovation-driven
Product and service safety and
Issues with both financial importance quality
Responding to climate change
Supply chain security /
and impact importance
Data security and customer
Step 3: privacy protection
Evaluate issue Impact importance assessment Issues with financial
importance Sort out the potential or actual positive or negative impacts of each issue on the importance but without / / /
impact importance
external environment, society and economy, conduct research and analysis
through questionnaires to stakeholders, and combine expert judgment to
Shareholders' equity protection
assess the issues with impact importance.
Environmental compliance Standardize corporate
Protecting the legitimate rights
management governance
and interests of employees
Issues with impact Anti-commercial bribery and
Energy utilization
Financial importance assessment importance but without
Employee training and anti-corruption
Pollutant emissions development
Through the analysis of impact, dependence and other factors, combined with Anti-unfair competition
financial importance Waste disposal
Occupational health and safety
expert judgment and the risk identification and assessment list of each Tax compliance
Water resource utilization
Social Contribution Risk management
department of the Company, identify and assess the risks and Circular economy
Stakeholder communication
opportunities under relevant issues, and assess the issues of financial ESG governance
importance.
Issues without financial importance or Ecosystem and Treating small and medium-
biodiversity sized enterprises (SMEs) Due diligence
Step 4: Form the list of issues with impact importance and financial importance, and impact importance
conservation equally
Confirm and approve ensure that the relevant issues are disclosed in a transparent, balanced and Note 1: The Company's operating activities do not directly impact ecosystems and genetic resources, and no rural revitalization projects were undertaken during the reporting
issues complete manner in the report. period. Therefore, no disclosure was made in this report on ecosystem and biodiversity protection and rural revitalization topics;
Note 2: The Company has not conducted specific ESG due diligence, but it continuously carries out risk management work to identify and assess potential negative impacts of
operations. For details, please refer to the Compliance Building chapter.
Standardizing Governance to
Build a Solid Foundation for
Development
Excellent corporate governance is the fundamental guarantee for a
company's steady and long-term progress, and also a solid foundation
for ZKTeco to achieve sustainable development. We actively build a
governance structure featuring scientific decision-making, effective
supervision, and clear powers and responsibilities, promoting the
Company's standardized operation and integrity in business. We
continuously improve our risk control and internal control systems,
fortify our compliance defense, enhance operational transparency and
management efficiency, earnestly fulfill our commitments to all
stakeholders, and safeguard the Company's long-term value growth.
Responsive SDGs
Peace, Justice and
Strong Institutions
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Standardizing Governance to Build a Solid Foundation for Development
Standardizing corporate governance Operational
Mechanism
Shareholders' meeting
Governance structure
The Company strictly formulates and implements the "Rules of Procedure of the Shareholders' Meeting" in accordance with the "Company Law",
the "Rules for the Shareholders' Meetings of Listed Companies", and other relevant laws and regulations, as well as the relevant provisions of its
Articles of Association, to regulate the procedures for the convening, holding, voting, and resolutions of its shareholders' meeting. The
The Company strictly adheres to the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), shareholders' meeting adopts a combination of on-site voting and online voting to facilitate shareholders' participation in the meetings. For
the "Securities Law of the People's Republic of China" (hereinafter referred to as the "Securities Law"), the "Rules Governing the significant events affecting the interests of minority shareholders, the Company strictly implements separate vote counting for minority
Listing of Shares on the ChiNext Market of Shenzhen Stock Exchange", and other relevant laws and regulations. It has formulated shareholders' resolutions, promptly discloses the voting results, and effectively safeguards the participation and voting rights of minority shareholders.
the Articles of Association of ZKTECO CO., LTD. (hereinafter referred to as the "Articles of Association") and other internal
management systems, establishing a governance structure with clear powers and responsibilities, composed of the Board of
Shareholders, the Board of Directors, specialized committees of the Board of Directors, and senior management. The
Company is committed to continuously improving its governance structure, strengthening its internal control system, and During the reporting period
constantly enhancing its level of standardized operation, to ensure the Company's compliant and stable operation and safeguard the
legitimate rights and interests of all shareholders.
the Company held a total of 3 general meetings, including 1 annual general meeting and 2 extraordinary
Shareholders' meeting
general meetings, and a total of 22 proposals were deliberated and approved.
Strategy and Development
Committee 1 For the year 2025, the meetings convened by the Company continued to use the name "General Meetings"; starting from 2026, the name will be
uniformly changed to "shareholders' meeting".
Board of Directors
Salary and Assessment
Committee Board of Directors
The Board of Directors is the Company's operational decision-making and business leadership body, implements the resolutions of the
Internal Audit Audit Committee
Department shareholders' meeting, and is accountable to the Board of Shareholders. The Company strictly convenes its board meetings in accordance with the
Managing Director Management Team
"Rules of Procedure of the Board of Directors", and makes scientific and prudent decisions on significant operational and management matters of
the Company. During the reporting period, all directors diligently performed their duties and attended board meetings on time. The Company's
Nomination Committee Board of Directors has established the Strategy and Development Committee, Audit Committee, Nomination Committee, and Salary and
Executive Committee for Management Service Team Assessment Committee. Each special committee performs its duties in accordance with its respective work rules, further enhancing the
Business Management
standardization and transparency of corporate governance through professional division of labor and effective supervision. The Company no longer
has a Board of Supervisors, with the Audit Committee exercising the functions and powers of the Board of Supervisors as prescribed by the "Company
Office of the Board of
Law"
Directors Team
Global Marketing Office (GMO)
Diversification
The selection and appointment of the Company's board members follows the procedures prescribed in the Articles of Association and the
"Implementation Rules of the Nomination Committee". When selecting director candidates, the Company comprehensively considers candidates'
Global R&D Center(GRDC)
professional knowledge, industry experience, management capabilities, as well as multi-dimensional factors such as gender, age, and educational
background, committed to building a diverse board structure to enhance the scientific nature and inclusiveness of decision-making. At the
end of the reporting period, the Company's Board of Directors consisted of 7 directors, including 1 employee representative director; 2 female
Board Memebers Office (BMO) directors, accounting for 28.57%. Board members have diverse backgrounds in professional fields such as financial management, legal
Global Manufacturing Center(GMC) compliance, corporate strategy, and industry technology, providing multi-angle professional insights and decision-making support for the Company's
development.
Global Operation and Management
Office(GOMO)
Independence
Global Financial Center (GFC)
In accordance with the "Company Law", the "Measures for the Administration of Independent Directors of Listed Companies", the
Company's "Articles of Association", and other relevant regulations, the Company has formulated the "Independent Director System",
"Annual Report Work System for Independent Directors", and "Special Meeting Work System for Independent Directors", to regulate the
Organizational Chart of ZKTeco selection, performance of duties, and safeguard mechanisms for independent directors. Independent directors play roles in decision-making,
oversight and checks and balances, and professional consultation within the Board of Directors, to safeguard the overall interests of the
company and the legitimate rights and interests of minority shareholders. As of the end of the reporting period, the Company's Board of
Directors had 3 independent directors, accounting for 42.86% of the board members.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Standardizing Governance to Build a Solid Foundation for Development
Compliance
During the reporting period, Building
the Company held 10 board meetings, deliberating and approving 40
proposals, with a 100% attendance rate of members. 2 special
Compliance management
meetings for independent directors were held, deliberating and approving 3 To strictly comply with the laws and regulations concerning export controls and economic sanctions in the countries (regions) where its business operates and prevent
proposals; the Strategy and Development Committee held 1 meeting,
compliance risks, the Company has formulated the "Trade Compliance Management Measures", which stipulates that the Company's business activities must not
violate applicable export control or economic sanction policies, and all business transactions must undergo strict trade compliance review and be recorded.
deliberating and approving 1 proposal; the Nomination Committee held 1
meeting, deliberating and approving 1 proposal; the Audit Committee held
The Company has established a trade compliance management framework. The Compliance Decision Committee serves as the primary leadership body, responsible for
organizing the formulation of compliance strategies, defining compliance management processes, and participating in major decisions. The Compliance Office, as
other departments. Front-end departments involved in foreign-related transactions, as executing departments, are responsible for implementing specific compliance
Assessment Committee held 4 meetings, deliberating and approving 10 management tasks.
proposals
The Company's specific compliance management measures are integrated throughout the entire business process. Before a transaction, the Company conducts
compliance reviews from at least six aspects, including transaction items, import/export countries, transaction parties, and end-use. At critical nodes such as supplier and
customer onboarding, contract signing, and before shipment, business departments must screen all parties involved in each stage of the transaction against sensitive
lists, and all screening records must be retained for no less than ten years. The Company clarifies the compliance obligations of all transaction parties through contractual
compliance clauses or separate compliance commitment letters. The Compliance Office is responsible for monitoring changes in external policies and lists and promptly
issuing risk warnings. The Company annually conducts comprehensive trade compliance risk screening and system operation effectiveness audits, and improves control
measures based on the results. In response to sudden compliance incidents, business departments must report within 48 hours, and the Compliance Office will take corrective
Salary management measures such as contract suspension.
During the reporting period, the remuneration management of the Company's directors and senior management strictly followed the "Salary and
The Company attaches importance to fostering a compliance culture. The Compliance Office is responsible for formulating and implementing annual training plans,
Assessment Management System for Directors and Senior Managers". Salary determination follows the principles of distribution according to
conducting trade compliance training for different departmental functions, and maintaining relevant records.
work, combining responsibility, authority, and benefits, linking income levels with company performance and work goals, and combining
individual compensation with the company's long-term interests. The Salary and Assessment Committee is responsible for formulating
remuneration policies and plans and conducting assessments. Relevant plans are submitted according to procedures to the board meetings and
shareholders' meetings for deliberation and approval, ensuring the remuneration decision-making mechanism is standardized, prudent, and transparent.
Directors' Remuneration
Standards
Directors holding positions in the Company's operational management have their remuneration standards determined based on their positions and responsibilities
within the Company;
Non-independent directors who do not hold positions in the Company may receive a certain amount of allowances according to the resolutions of the shareholders'
meetings;
The Company's independent directors are subject to an allowance system. Independent directors receive fixed independent director allowances, and the allowance
standards are disbursed in accordance with the resolutions of the shareholders' meetings.
Trade Compliance Training - Dongguan Venue Trade Compliance Training - Xiamen Venue
Senior Management
Remuneration Standards
Risk management
The remuneration of the Company's senior management (including the General Manager, Deputy General Managers, Board Secretary, and Financial Administrator, etc.)
consists of basic salary and year-end bonus; The Company's Board of Directors is responsible for planning and establishing the Company's risk management framework, specifying the Company's risk
Basic Salary Standards: primarily determined based on factors such as position, responsibility, capability, and market salary trends; management policies and relevant guidelines, and supervising the implementation of risk management measures. The Company has formulated risk management policies to
identify and analyze the risks faced by the Company and specified specific risks, covering many aspects such as market risk, credit risk and liquidity risk
Year-end Bonus: determined comprehensively based on the Company's annual operating performance, job performance appraisals, etc. The assessment is annual
assessment, and the final payment will be calculated based on the assessment results of the current year. management. The Company regularly evaluates changes in the market environment and the Company's operating activities to decide whether to update the risk
management policies and systems. The risk management of the Company is carried out in accordance with the policies approved by the Board of Directors. Our
internal audit department conducts regular audits on risk management controls and procedures, and reports the audit results to the Audit Committee.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Standardizing Governance to Build a Solid Foundation for Development
Internal control Investor relations
The Company continuously improves its internal control system in accordance with the "Basic Norms for the Internal Control of Enterprises" and management
other laws, regulations, and regulatory requirements. The Board of Directors is responsible for the establishment, improvement, and effective
implementation of the Company's internal control. The Board of Directors has established an Audit Committee, which is responsible for
supervising and evaluating the Company's internal control and guiding internal audit work. The Company has established an independent To improve corporate governance and strengthen effective communication with investors, the Company
internal audit department, staffed with full-time auditors, which is directly responsible to the Board of Directors and reports its work to the Audit has formulated the "Investor Relations Management System", aiming to foster a sound
Committee. The Internal Audit Department is responsible for inspecting and evaluating the completeness, reasonableness, and effectiveness of the relationship between the Company and its investors and enhance investors' further Investor Contact Channels
implementation of the internal control systems of the Company's various internal departments, controlling subsidiaries, and investee understanding and familiarity with the Company. The Company's Board Secretary serves as the head
companies with significant influence. It audits the legality, compliance, and authenticity of financial revenues and expenditures and related of investor relations management, coordinating all investor relations affairs; the Securities Department,
economic activities. Website www.zkteco.com
as a functional department, is responsible for the daily management of investor relations,
including drafting policies, organizing activities, addressing investor appeals, and maintaining Tel. 0769-82618868
In terms of its operating mechanism, the Internal Audit Department is responsible for formulating the annual internal audit work plan and organizing communication platforms.
its implementation after approval by the Audit Committee. The scope of audit covers financial reports, the use of raised funds, external Email ir@zkteco.com
investments, external guarantees, related party transactions, and other significant matters. The Company conducts a comprehensive and in-depth The Company maintains communication with investors through diversified channels, including
assessment of internal control effectiveness annually and truthfully discloses the "Internal Control Evaluation Report". Meanwhile, the Company the Shenzhen Stock Exchange Easy to Interact platform, the Company's official website, corporate
annually engages an accounting firm to audit the effectiveness of its internal controls and issue an "Internal Control Audit Report". email, and investor inquiry hotline. The Company always adheres to the principles of openness
and transparency, maintaining long-term, stable, and harmonious interactive relationships with
investors, thereby assisting them in making rational decisions.
Management of related party transactions Tax management
To ensure that related party transactions between the Company and its The Company strictly abides by the provisions of national laws,
related parties comply with the principles of fairness, impartiality, and regulations, and policies, such as the "Law of the People's
openness, and to protect the legitimate rights and interests of investors, Republic of China on the Administration of Tax Collection", the During the reporting period,
especially small and medium-sized investors, the Company has "Law of the People's Republic of China on Enterprise Income
formulated institutional documents such as the "Related Party Tax", and the "Provisional Regulations of the People's Republic of
Transaction Management System" and the "Standardized Management China on Value-Added Tax". It adheres to paying taxes in the Company received investors for on-site research
investors 105 times on Easy to Interact, achieving a 100% response rate to investor questions; held 3
System for Related Party Fund Transactions" in accordance with the accordance with the law, ensuring timely and full payment of
"Company Law" and the Articles of Association. These documents clarify taxes. To strengthen the standardization and effectiveness of tax
open investor communication meetings; and answered 529 investor calls.
the specific matters of related party transactions and fund transactions with management, the Company has formulated a series of financial and
related parties, the scope of identification of related parties, and stipulate tax-related systems such as the "Management Measures for the
the review and disclosure procedures, pricing principles, etc., Issuance and Use of Value-Added Tax Invoices", the
for related party transactions. Meanwhile, the Company strictly "Management System for Stamp Duty Declaration", and the
implements a related party avoidance mechanism. When related "Management Norms for Export Receipts and Foreign
party transactions are reviewed, related directors and shareholders Exchange", strictly managing all tax-related work and
must avoid voting, thereby effectively safeguarding the interests of the preventing tax risks such as failure to pay taxes on time and tax
Company and all its shareholders. evasion. Shareholders'
equity protection
Protecting rights and interests of investors
Information The Company's shareholder return policy adheres to the relevant provisions of the "Company Law" and the Articles of Association. To establish a
continuous and stable return mechanism, the Company's Board of Directors has formulated the "Shareholder Dividend Return Plan for the
disclosure Next Three Years (2025-2027)". When formulating its profit distribution plan, the Company comprehensively considers factors such as its
development stage, operating conditions, financial position, future capital needs, and financing environment, balancing shareholders' short-term
The Company strictly abides by laws, regulations, and regulatory provisions such as
returns with the Company's long-term development. The Company's profit distribution adheres to the principle of prioritizing cash dividends and
the "Measures for the Administration of Information Disclosure of Listed
specifies the minimum cash dividend ratio for different development stages. During the decision-making process, the Company focuses on fully
Companies" and the "Rules Governing the Listing of Shares on the ChiNext Market In 2025, the Company disclosed a
soliciting shareholder opinions through methods such as online voting at shareholders' meetings and proactive communication with
of Shenzhen Stock Exchange". It has formulated internal rules and regulations, including
the "Information Disclosure Management System", which clarify the content, total of 200 announcements, minority shareholders.
including 4 regular reports.
standards, procedures, and management responsibilities for information On June 4, 2025, the Company completed its equity distribution in accordance with the "Proposal on the 2024 Profit Distribution Plan": a cash dividend
disclosure. This ensures the truthfulness, accuracy, and completeness of information of RMB 0.5 per share for 2024, with a total cash payout (tax inclusive) of RMB 97,598,100; and converted capital reserve into share capital, with 2
disclosure, allowing investors to fully understand the Company's operating conditions, shares transferred for every 10 shares, totaling 39,039,225 shares of increased share capital. The Company's planned 2025 profit distribution plan is
financial position, risk profile, and development prospects. During the reporting period, to distribute a total of RMB 112,433,000 in cash dividends, with no bonus shares and no capitalization of share capital from capital reserve.
the Company disclosed regular reports and temporary announcements in accordance
with the law, and there were no instances of being penalized by securities
regulatory authorities due to violations of information disclosure.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Standardizing Governance to Build a Solid Foundation for Development
Commercial conduct Reporting channels
The Company has opened reporting channels such as telephone and email, encouraging
internal and external stakeholders to report improper conduct involving anti-corruption, anti-
Anti-bribery and bribery, or other violations of laws, regulations, or business ethics. After investigation and
verification, appropriate disciplinary measures will be taken against violators, and the results
Duty crime reporting channel of
anti-corruption will be communicated internally and to necessary external third parties as required. ZKTeco:
The Company highly values whistleblower protection. All reports are handled and recorded Reporting Hotline:
by dedicated personnel, and strict confidentiality measures are taken for whistleblowers' 13538555484（long-term）
Integrity system personal information and reporting materials to prevent any form of disclosure or dissemination.
The Company strictly prohibits any retaliatory actions against whistleblowers, and such actions Reporting Email:
will be seriously investigated and dealt with. If necessary, the Company will pursue legal
ZKTeco strictly abides by laws and regulations such as the "Criminal Law of the People's Republic of China" and the "Basic Norms for the Internal action to hold relevant parties accountable, to effectively safeguard the legitimate
zklaw@zkteco.com；
Control of Enterprises", and has formulated the "Anti-Commercial Bribery System" to regulate employees' ethical conduct in employment. At the rights and interests of whistleblowers. 1371146414@qq.com
same time, the Company sets requirements for business partners with whom it has dealings in the "Anti-Commercial Bribery System", prohibiting
reverse bribery targeting the Company's internal personnel. The Company has established an anti-commercial bribery working group to
continuously supervise its anti-commercial bribery efforts. The Chairman serves as the leader of the working group, responsible for guiding the
Company's anti-commercial bribery work. Members include the General Manager, Board Secretary, Financial Center, Legal Department, Internal Audit
Department, etc. The Company's Legal Department is the standing body for anti-commercial bribery work, responsible for the specific implementation
of anti-commercial bribery efforts for the Company and its subsidiaries.
The Company advocates a corporate culture of honesty and integrity, fostering an anti-bribery environment. It regularly conducts integrity training for
Anti-monopoly and
employees to ensure they truly understand the requirements of anti-commercial bribery laws and regulations and internal company policies, helping
them distinguish between legal compliance and illegal criminal acts, and between ethical and unethical behavior, thereby ensuring the Company's anti-unfair competition
continuous, stable, and healthy development.
The Company always adheres to the principles of fair and free competition, strictly abides by relevant laws and regulations on antitrust and anti-
unfair competition, systematically regulates market competition behavior, and is committed to maintaining an honest, fair, and free market order and
business environment. In 2025, the Company had no significant legal disputes related to unfair competition and antitrust.
In 2025, the Company conducted 6 legal training sessions and 2 hours of anti-commercial bribery and In fulfilling its commitment to responsible marketing, the Company strictly complies with the "Advertising Law of the People's Republic of
China", formulated the "Management Measures for External Publicity of China Region Business Division" and other regulations, compiled a list
anti-corruption training, with of prohibited and sensitive words for advertising and publicity, clarified specifications for external publicity materials, strictly prohibited all
forms of false advertising, and continuously improved the Company's information management and publicity efforts. In addition, to enhance our
employees' awareness of responsible marketing, we provide annual training on responsible marketing to them.
Integrity supervision
Indicators Unit 2023 2024 2025
The Company attaches great importance to commercial bribery risk management and control in all business operations, continuously Person-time of responsible
marketing training
Person-time 609 521 436
improving various processes, rules, and systems. It assesses commercial bribery risks and establishes specific control procedures and mechanisms to
Total duration of responsible Hour
objectively reduce the likelihood of commercial bribery. To establish an internal environment of integrity and compliance for employees, the
marketing training
Company has established supervision and evaluation mechanisms to review and assess employees' integrity in their professional conduct. It signs Number of responsible
the "Integrity Agreement" with employees and regularly requires them to complete the "Honesty and Integrity Self-Inspection Form". For acts
Times 4 4 4
marketing training sessions
violating the provisions of the agreement, the Company will handle them in accordance with relevant laws and regulations and company policies.
In addition, the Company actively supervises the integrity of suppliers' professional conduct. To ensure the transparency of the procurement
process, the Company and its suppliers jointly signed the "Integrity Agreement" and the "Procurement Framework Agreement", clearly defining the
scope of "improper benefits" and comprehensively prohibiting any form of bribery, illicit benefit transfer, and acts that violate business integrity.
The Company requires suppliers to provide integrity education to their employees and establish a responsibility mechanism for proactively
declaring conflicts of interest, as well as refusing and reporting bribery attempts by Party A's personnel. For breaches of contract, the
"Integrity Agreement" stipulates severe disciplinary measures, including disqualification of suppliers, blacklisting, payment of high liquidated
damages, and compensation for losses, reflecting the Company's zero-tolerance stance on corruption, thereby effectively preventing business ethics
risks and protecting the legitimate rights and interests of the Company and its partners. In 2025, the signing rate of the "Integrity
Agreement" among suppliers was 100%,
Low-Carbon
Transition, Leading
Green Development
ZKTeco adheres to its original aspiration for green development, strictly
implements various environmental protection requirements, establishes and
improves an environmental management system, and promotes pollution
prevention and control, energy conservation and consumption reduction, and
resource recycling, thereby comprehensively solidifying the practical
foundation for corporate ecological environmental protection.
Responsive SDGs
Clean Water and
Affordable and Clean Energy Climate Action Life on Land
Sanitation
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Low-Carbon Transition, Leading Green Development
Responding to climate change Risk/Opportunity
Type
Risk/ Opportunity
Description
Likelihood 1
Impact Time
Range2
Expected Financial Impact Countermeasures
efficiency
Adopt clean energy and energy-saving Promote green production and actively
Resource
Short and
technologies to reduce production High medium to Operating costs adopt energy-saving and carbon reduction
energy consumption and carbon are reduced. technologies.
Governance emissions.
long term
Opportunity
Products and
services
Short and
Develop low-carbon products and High changes in customer needs and industry
medium to Operating revenue
services to meet customer needs and trends;
ZKTeco integrates climate change-related functions into its governance structure and continuously promotes the optimization and upgrading of enhance market competitiveness.
long term increased. 2.Accelerate R&D and innovation of green
its climate change governance system. The Company refines the core responsibilities of each department in climate change management, designates and low-carbon products.
the Integrated Service Center as the responsible management department for climate change response, while strengthening coordination and 2 Likelihood refers to the frequency and probability of risks/opportunities occurring, primarily determined by historical probabilities, external scenarios, progress in policy
seamless transition across all links, continuously improving the completeness, adaptability, and implementation effectiveness of the governance implementation, and expert judgments. Likelihood is assessed from "Low" to "High".
system. 3 Impact time range refers to the different time periods over which climate-related risks and opportunities will affect the company. The Company categorizes the impact time
range into short-term (0-1 year), medium-term (1-5 years), and long-term (over 5 years).
Strategy Impact, risk and
opportunity management
The Company, in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), analyzes
climate change-related risks, identifying the risks and impacts brought by climate change to the Company from both physical risks and ZKTeco incorporates climate change risks into its corporate risk assessment and control system, deeply explores technological innovation
transformation risks, and actively takes countermeasures. opportunities and market development potential in the transition to a low-carbon economy, continuously enhances the Company's resilience to climate
risks, and effectively integrates SDGs with the Company's strategy.
Risk/Opportunity Risk/ Opportunity Impact Time
Countermeasures
Climate-related Risk Identification,
Likelihood1 Expected Financial Impact
Type Description Range2 Assessment, and Management Processes
The frequency and intensity of extreme Facility repair and operation are
and implement disaster response plans;
Acute risk
weather events such as typhoons, suspended, and costs of By comprehensively analyzing the current trends in the natural and social environment and identifying
Short to 2.Strengthen flood control and windproof
floods, heavy rain, heat waves and cold High medium term alternative supply chains are facilities; Step 1 risks in different scenarios, a preliminary list of potential climate risks for the Company is compiled using methods
snaps have increased. increased. 3.Build a diversified supply chain such as industry research reports, policies issued by regulatory agencies, benchmarking against peers, and
system. stakeholder surveys.
Physical risk
There is continuous rise in sea level, 1.Strengthen flood control and emergency
Chronic risk
average temperature increase, and management to reduce the probability of
business interruption. Perform climate risk assessment and ranking
extreme changes in precipitation High Medium to Operating costs increased.
patterns and weather patterns, etc. long term 2.Enhance temperature control in office, Step 2 Based on the climate risk list, each climate risk and opportunity is analyzed and evaluated, and the importance
production, and other processes. of the risks is ranked.
Market risk
There are changes in customer Short and Sudden and unexpected Actively promote the Company's energy Formulate countermeasures
Transformation risk
High medium to changes occur in energy conservation and carbon reduction According to the results of the climate risk assessment, each department conducts targeted risk management
behavior, uncertain market signals, and
long term costs. efforts. Step 3
rising energy costs. and response work and formulates risk handling plans, and the relevant business departments are responsible
for implementation.
Reputation risk
There is impact on corporate reputation Strengthen stakeholder communication,
Short and
due to non-compliance or poor Low medium to proactively publish sustainable
Operating revenue declined. Monitor and manage
performance in climate risk long term development reports, and disclose
management. information related to climate change The relevant business departments regularly report the implementation of countermeasures to the management
response. Step 4 and adjust actions in a timely manner based on the actual situation. The management regularly supervises the key
risk indicators and annually reports significant climate-related risks to the Board of Directors.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Low-Carbon Transition, Leading Green Development
Indicators and
objectives Environmental management
ZKTeco has clarified core requirements for emission reduction based on national carbon peaking and carbon neutrality goals, and formulated a series of
energy-saving and consumption-reducing measures. During the reporting period, the Company updated its climate change response goals to
Environmental compliance
"continuously explore innovative implementation paths for low-carbon scenarios, promote energy saving and consumption reduction in management
operational processes, and work with customers to move towards a low-carbon, sustainable smart space future." In the future, the Company
will continue to monitor the implementation and execution of greenhouse gas emission reduction measures, steadily improve its climate
change management level, and lay a more solid foundation for promoting green and low-carbon operations.
Environmental management system
ZKTeco adheres to the environmental policy of "complying with regulatory requirements and implements pollution prevention; reasonably
utilizing resources and continuously improving the environment", strictly abides by the "Environmental Protection Law of the People's Republic of
Greenhouse gas China" and other laws and regulations, and, in conjunction with the Company's actual environmental management situation, compiled the
"Environmental Management Manual", continuously improves the environmental management system, and clarifies the responsibilities and
emission management interrelationships of each department in environmental management. In 2025, the Company's total investment in environmental protection was RMB
Organizational Structure of
ZKTeco's Environmental
ZKTeco actively responded to the national call for green and low-carbon development, continuously optimized its energy consumption Management
structure, comprehensively promoted green office practices, encouraged employees to adopt low-carbon travel, and reduced carbon emissions in an all- Position Responsibilities
round and multi-faceted manner. The Company is committed to achieving green production and low-carbon operations. In new production Responsible for overseeing the Company's environmental management affairs and making final decisions on
Managing Director
bases, advanced environmental protection technologies and equipment are introduced, and production processes are continuously optimized to major environmental issues.
Management Responsible for establishing, implementing and maintaining the Company's environmental management system, approving
reduce pollutant emissions and improve resource utilization efficiency.
representative environmental objectives and indicators, and approving environmental management plans.
In addition, the Company leverages its accumulated digital intelligence technology to explore innovative implementation paths for low-carbon scenarios All Departments Responsible for implementing environmental management and achieving the Company's environmental objectives.
and promote the steady realization of its "dual carbon" goals through practical green practices.
Case During the reporting period, the Company successfully passed the ISO 14001:2015 Environmental
Zero-carbon kiosk
Management System certification, and there were no environmental penalties or violations.
Addressing the digital transformation needs of the traditional retail
industry, ZKTeco has launched products and applications
designed for innovative businesses – smart retail scenarios, including Environmental Management System Certificate
the unattended zero-carbon kiosk, ZKDIGIMAX Smart Retail
AI Platform Level 3 (L3), and Content Management System
(CMS). Integrating technical and business capabilities in fields
To advance the Company's environmental management efforts, we formulated an environmental management plan implementation schedule, set control
such as computer vision, big data, and cloud computing, it
targets for pollutants and waste, and continuously tracked the progress of target achievement to ensure the effective implementation of various
provides retailers with personalized recommendations and environmental management measures.
customized services.
Zero-Carbon Kiosk Target Content Achievement
The discharge compliance rate for domestic sewage and Achieved
industrial wastewater is 100%.
The compliance rate for kitchen fumes and smoke Achieved
emissions is 100%.
The compliance rate for noise emissions at the factory Achieved
boundary is 100%.
harmful solid waste
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Low-Carbon Transition, Leading Green Development
Environmental risk control Case
Ultrasonic cleaning water treatment and reuse project
The Company has formulated and strictly implements internal control procedures such as the "Risk and Opportunity Management Control Procedure"
The Company has an ultrasonic cleaning process in the production process of its products, and the water to be treated includes wastewater
and the "Environmental Factor Identification and Evaluation Procedure". Starting from risk identification and assessment, the Company
generated after filtration by a water purifier and wastewater from ultrasonic backend cleaning. The Company engaged professional third-
systematically reviews its potential risks in environmental management and conducts comprehensive and accurate identification and evaluation of
party organizations to use reclaimed water reuse filtration facilities to treat the aforementioned wastewater. The purified wastewater is
environmental factors in its activities, products, and services, thereby minimizing the potential harm caused by environmental factors.
then reused in the production process, achieving closed-loop management of production water and effectively reducing wastewater
discharge.
In addition, the Company investigates environmental risks and hazards, and improves risk prevention and control measures for sudden
environmental incidents. The Company has formulated the "Chemical Leakage Emergency Plan" to standardize the handling process for
sudden environmental incidents. At the same time, the Company conducts emergency drills to test the feasibility and effectiveness of
emergency plans, and continuously optimizes emergency mechanisms based on drill results, thereby effectively enhancing overall emergency
response and risk control capabilities.
Waste gas management
The Company strictly controls exhaust gas emissions during the production process, commissioning professional third-party organizations to
Chemical leak prevention drill
Case provide a "Technical Plan for VOCs Treatment" based on the Company's actual situation, ensuring that exhaust gas emissions comply with relevant
national and local regulations. To ensure the stable operation and continuous compliance with emission standards of the exhaust gas treatment
system, the Company has established a comprehensive facility maintenance mechanism, regularly arranging employees to conduct thorough
On August 1, 2025, the Company organized a hazardous chemical leakage drill to enhance the employees' response and rescue organization inspections and maintenance of the exhaust gas treatment facilities, thereby ensuring the robust operation of equipment and facilities. The
capabilities in the event of a chemical leak, and strengthen their environmental protection and safety awareness. Meanwhile, through this Company has installed environmental protection exhaust fans to quickly draw smoke and dust to the rooftop, where they are filtered and separated of
drill, we improved the operability of the on-site disposal plan for leakage incidents within the emergency plan, enhancing its practicality harmful substances through purification equipment, ensuring that the air meets environmental protection emission standards. Concurrently, by
regularly cleaning the smoke and dust collection devices, the dust collectors can operate efficiently, strengthening systematic control over exhaust gas
and completeness.
emissions.
Waste
Environmental protection training
management
The Company regularly conducts environmental education and training. Each department identifies the environmental training needs of
employees based on actual work requirements, determine different training themes, such as environmental awareness education, legal and ZKTeco strictly complies with the "Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by
regulatory explanations, environmental business knowledge and professional skills training, and formulates corresponding employee training plans. Solid Waste" and other relevant laws, regulations, and standard documents. It has formulated the "Waste Management Specification",
established and continuously improves its waste management system, carefully handles general industrial waste and hazardous waste, and
effectively reduces the potential harm of waste to the environment.
Pollutant For general waste, the Company has signed a "General Industrial (Solid) Waste Treatment Service Agreement" with third-party organizations, and
emissions hired organizations to assist it in handling general waste such as waste packaging, tin tin dross, and defective glass prisms. For hazardous waste, the
Company entrusts qualified third-party organizations for standardized hazardous waste treatment. Both parties sign the "Hazardous Waste
Disposal Service Contract", and simultaneously formulate detailed inter-provincial transfer plans and file them for record. Professional third-party
ZKTeco and its subsidiaries are not classified as key polluting entities announced by the environmental protection department, and strictly comply companies are entrusted with the entire transportation of hazardous waste from its point of origin to the disposal site, ensuring its safe and compliant
with the "Law of the People's Republic of China on Prevention and Control of Water Pollution", the "Law of the People's Republic of China on the disposal.
Prevention and Control of Atmospheric Pollution", and other relevant laws and regulations in their daily production and operation. The Company
regularly monitors and dynamically assesses key environmental indicators by implementing the "Environmental Monitoring and Control Procedure"
to ensure that all environmental risks are under control. During the reporting period, the Company commissioned qualified professional third-party
organizations to conduct environmental monitoring and issue testing reports, ensuring the compliant discharge and disposal of pollutants. During the
reporting period, the Company did not incur any penalties or violations related to pollutant discharge. Indicators Unit Unit
General waste generation volume Ton 2.5
Ton 2.5
Wastewater management General waste disposal volume
Hazardous waste generation volume Ton 41.6
The Company's domestic wastewater is treated and then discharged into municipal pipelines, and no industrial wastewater is generated. To Hazardous waste disposal volume Ton 45.787
ensure compliant wastewater discharge, the Company commissioned a qualified professional third-party organization to develop a
"Wastewater Treatment Plan" based on the Company's actual situation, ensuring proper wastewater treatment and that the treated wastewater can
be reused. During the reporting period, the Company's wastewater discharge volume was 85 tons, with a 100% compliant wastewater disposal rate,
achieving zero industrial wastewater discharge.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Low-Carbon Transition, Leading Green Development
Resource management Target Content Achievement
Domestic water: ≤ 4m 3 per person
Achieved
Production water: ≤2,500m?
Energy
utilization The Company intensifies the daily inspection, maintenance, and management of water-using equipment, promptly addressing any leakage or waste,
and strictly preventing the waste of water resources. The total monthly water consumption is verified and statistically recorded by a designated
person. Violations of water conservation regulations and water waste are subject to penalties based on the severity of the offense. In addition, the
Company vigorously promotes water conservation by posting water conservation slogans and other methods to enhance employees' awareness of water
Governance system conservation
ZKTeco strictly adheres to the "Law of the People's Republic of China on Conserving Energy" and other national laws and regulations,
formulates systems and regulations such as the "Energy and Resource Management System" and the "Energy Performance Management
System", introduces the ISO 50001 energy management system standard, and continuously improves its energy management system.
Circular
economy
In addition, the Company formulates the "Energy Measurement and Statistics Position Work Guidelines", the "Energy Performance Management
System", and the "Energy Statistics Account System" and other systems to clarify the specific responsibilities and processes for energy
measurement, statistics, analysis, and performance management, ensuring the accuracy and traceability of energy data and providing a scientific
basis for the Company's energy management decisions. By establishing an energy performance management system, it can continuously ZKTeco has formulated the "Raw Materials Warehouse Management Regulations" and other systems to rationalize warehouse operations, ensure
monitor and optimize energy usage efficiency, promoting the refinement and sustainable development of the Company's energy management. the safety and quality of materials, guide and standardize the daily work of warehouse personnel, and improve the efficiency of material turnover.
The Company has established a complete material management organization, with the material warehouse divided into an electronic
materials warehouse and a mechanical materials warehouse. The specific responsibilities of each position in the raw materials warehouse
management are clearly defined, enabling efficient raw materials warehouse management. The Material Management Department regularly conducts
Energy conservation and consumption reduction measures material-related training. After the training, the "Training Sign-in and Evaluation Form" is prepared to quantify training results and
continuously enhance employees' professional and practical skills in material management.
The Company formulates internal management systems such as the "Energy Conservation Target Management System", the "Energy
Conservation Publicity System", and the "Energy Conservation and Emission Reduction Reward and Punishment System", sets energy and resource In addition, the Company actively selects environmentally friendly materials, optimizes process flows, effectively disassembles, classifies, and
consumption management targets, and integrates publicity and guidance, target control, and reward and punishment constraints into all aspects of reuses waste products, and reduces waste generation. In daily office operations, the Company promotes paperless office practices and explores the use of
daily operations, empowering the enterprise's low-carbon transformation. The Company implements energy-saving technical upgrades, e-paper smart devices and solutions to achieve efficient resource recycling and promote the development of the circular economy.
eliminates outdated and inefficient equipment, and strictly controls equipment no-load and standby losses; for major energy-consuming equipment,
energy consumption quotas are set, and regular assessments are conducted; the Company strengthens equipment maintenance, ensuring efficient
and stable operation of equipment.
In addition, the Company promotes digitalized energy consumption management. During the reporting period, the ZKTeco ZKBio V6600 intelligent
management platform was further expanded and upgraded, adding energy consumption management and space management modules. Through
one-stop centralized management, it enables intelligent analysis and decision-making for office scenes, assisting enterprise parks and office buildings
in achieving energy-saving and low-carbon operations.
Target Content Achievement
Domestic electricity: ≤ 30kWh per person
Achieved
Production electricity: ≤450,000kWh
Water resource utilization
ZKTeco strictly adheres to relevant laws and regulations such as the "Water Law of the People's Republic of China", closely follows the
policies and requirements of the state and local governments regarding water usage and reuse, sets water-saving targets, optimizes water resource
management, and improves the recycling rate of water resources. After tap water is purified through a water purifier, 70% of the purified water is
used in ultrasonic cleaning machines. After professional treatment, 60% of the reclaimed water meets the reuse standards and is then returned to the
water purifier for secondary purification, achieving tiered and intensive utilization of water resources and effectively reducing water consumption
for production. The Company's water source is municipal water supply.
Basic On-site Warehouse Management Training
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Low-Carbon Transition, Leading Green Development
Full-process
material
management
Develop a Warehouse Management (WM) "Risk and Opportunity List" to comprehensively identify potential
risks across all operational stages and roles in material management. Following assessment and analysis,
formulate safety control measures and recommended improvement actions.
Implement classified identification management for material storage, partitioning storage areas based on
characteristics such as electrostatic discharge (ESD) protection, temperature, and humidity.
Smoking, carrying ignition sources, and storing flammable, explosive, or hazardous materials are strictly prohibited
in the warehouse. Regular safety inspections are conducted to prevent material damage and safety incidents.
Material
storage
Leverage the SAP system to achieve precise inventory record management, implementing zone
segmentation, line marking, and fixed-location control for goods.
Develop detailed transportation plans based on production order requirements, adopting appropriate packaging and
protective measures.
Utilize AGV machines for material transportation to reduce material loss.
Material Real-time monitoring of the transportation process is conducted, and emergency plans are prepared to address
transportation unforeseen circumstances.
Deliver materials based on order requirements to ensure that the consumption of raw materials during production
complies with the material BOM and process requirements, thereby preventing waste.
Incoming raw materials are subject to quality inspection and reliability testing to ensure that their quality meets
Receiving and production requirements.
usage
Green office
practices
ZKTeco adheres to a green office philosophy, continuously reducing resource and energy consumption in its office scenes. The Company strictly
adheres to energy-saving standards, and reminds employees to pay attention to saving resources and energy and avoid waste. The Company
actively promotes paperless office, utilizing digital technology for document management and communication as much as possible. For inevitable
paper usage, we also advocate the use of recycled paper to reduce paper consumption.
In the office, ensure lights are off on sunny days, minimize lighting when fewer people are present, and turn off lights
when leaving, thereby eliminating the phenomenon of lights being left on unnecessarily or during daylight hours.
Adjust the positions of desks in each department (office) to make use of natural light as much as possible.
Energy-saving lamps are used and ordinary incandescent bulbs are not used.
Reduce the power consumption of electronic office equipment and standby power consumption. Computers,
printers, copiers, scanners, fax machines and other electrical equipment should be turned on and used reasonably.
Power should be turned off when personnel leave work to prevent standby power consumption.
Set air conditioners to reasonable temperatures: the indoor cooling temperature in summer should not be lower than 26°
Saving C, and the indoor heating temperature in winter should not be higher than 20°C). In special places, they can be turned
electricity on according to work needs. It is prohibited to turn on the air conditioner when no one is around to avoid wasting
electricity.
Strictly prohibit the use of high-power appliances such as electric stoves in the office. The configuration
and switch time of electric drinkers should be reasonably adjusted to reduce unnecessary power consumption.
Conduct energy-saving campaigns to jointly build an energy-efficient society.
Empowering Collaboration to
Co-create a Thriving
Ecosystem
ZKTeco deeply cultivates the core aspects of industrial
development, with innovation as its driving force, product safety as its
foundation, and high-quality customer service as its bond. It establishes
a dual guarantee of supply chain security and information security,
fostering multi-dimensional collaboration to build core industrial value
and inject continuous momentum into the high-quality development of the
industry.
Responsive SDGs
Responsible
Industry, Innovation and
Consumption and Partnerships for the Goals
Infrastructure
Production
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Empowering Collaboration to Co-create a Thriving Ecosystem
Innovation-driven
Innovation
Indicators Unit
management system 2023 2024 2025
Divided by educational background
Bachelor's degree Person 794 761 660
Governance Master's degree Person 76 64 62
Other Education Background Person 356 293 229
R&D and innovation system
ZKTeco adheres to the mission of "AI cognition makes spaces smarter and the world better", and has formulated and updated systems such as the
"Product Development Process", "Engineering Change Process", "Customization Demand Classification and Baseline Standards", and "Technical R&D and innovation certifications
Committee Management Charter", further improving the product R&D system and driving high-quality development through innovation. The
Deputy General Manager serves on the R&D Technology Committee, responsible for the management and guidance of R&D and ZKTeco is deeply committed to the R&D and innovation field. In 2024, the
innovation. The CFO is responsible for approving the R&D and innovation budget. The Company established an R&D Center as the Company obtained High-tech Enterprise certification, valid for three years. In
department responsible for R&D and innovation, and is deploying a global R&D system. 2025, Xiamen ZKTeco and Guangdong Zkteco successfully passed the re-
evaluation and obtained High-tech Enterprise certificates. Dalian ZKTeco was
Version: V20241213
recognized as a technology-based SME and an innovative SME. The Company
Organizational Chart of R&D Centers
continuously optimizes the layout of its scientific and technological innovation
platforms, has garnered numerous authoritative recognitions and honorary awards,
and actively joins various industry and social organizations, thereby solidifying
R&D Center the foundation for technological development through a diversified innovation
strategy.
Regional
High-tech Enterprise Certificate
R&D Centers
Management and Operation Department
Electromechanical Products R&D and
Smart Entrance and Exit Management
Smart Card and Consumer Terminal
Smart Innovation Research Institute
Time Management Product Line
Hardware Platform Operations
Software Platform Operations
Smart Business Product Line
Dongguan-Shenzhen
Smart Sensing Product Line
ARMATURA Product Line
R&D Center
Innovation Social
Organizations Participated
Innovation Center
Product Line
Product Line
Xiamen R&D Center
Department
Department
in by the Company
Xiamen Technology Innovation Association (director entity)
Dalian R&D Center
Xiamen High-tech Association
Indian R&D Center
Xiamen System Integration Association
Hangzhou R&D
Center Xiamen Software Association
China National Information Technology Standardization Network (NITS)
Organizational Chart of R&D Centers Chinese Information Technology Application Innovation Working Committee of China Electronics
Standardization Association
IIFAA (member entity)
R&D Teams
National Information Technology Standardization Technical Committee Technical Committee on Biometrics
ZKTeco always places its talent strategy at the core of its corporate development, adhering to an engineer culture to build an innovation system.
It actively cultivates a high-caliber R&D team, laying a solid foundation and providing core assurance for continuous innovation. Intelligent Terminal Microelectronics Association (ITMA)
Indicators Unit 2023 2024 2025
Number of R&D personnel Person 1,226 1,118 951
Proportion of R&D personnel % 29.86 31.42 27.57
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Empowering Collaboration to Co-create a Thriving Ecosystem
Strategy
Assess the size and likelihood of risks mainly through subjective judgments and descriptions of their nature,
In the process of strategic advancement, the Company needs to balance the risks and opportunities in the field of R&D and innovation: scope of influence, and potential consequences, as well as through specific financial data and indicators, such as the
Risk growth rate of new product sales and the first-pass yield of new product delivery.
on the one hand, the uncertainty of technological R&D, the risk of intellectual property leakage, and talent supply gaps may bring cost
assessment
pressure; on the other hand, accurately grasping market demand and emerging technology trends is expected to drive revenue growth
and enhance competitiveness.
Assess the impact of risks from four aspects: Financially, examine whether there is direct economic loss and
Risk/ Impact
Risk/Opportunity Expected measure it in terms of amount or financial indicators; strategically, focus on whether it disrupts the
Opportunity Likelihood Time Countermeasures
Description Financial Impact Company's strategy, such as changes in R&D direction or market position; reputationally, determine
Type Range
whether the Company's reputation and brand image are damaged, referring to media reports, word-of-
Technological iteration in the industry is confidentiality agreement to prevent the leakage of
rapid, and the Company's R&D technology.
Risk such as pollution or resource waste during R&D. To determine the likelihood of risk occurrence, it is usually
achievements may be superseded by 2.Before a project is initiated, a technical feasibility assessment necessary to refer to the frequency and probability of similar risks in the past for competitors and companies in the
Technical risk
new technologies before market launch. review is conducted, with a focus on discussing the and ranking same industry, as well as to invite experts for assessment and conduct scenario analysis under different
Risk
The Company's internal R&D Medium Operating costs
Medium feasibility and maturity of new technologies for key standards
achievements may be leaked due to to long increased. circumstances to evaluate the possibility of risk occurrence.
requirements.
reasons such as employee departure, term
hacker attacks, and violations by universities and research institutions to enhance
partners, causing losses to the Company. technological capabilities and innovation capacity.
Based on the annual key indicators for R&D, such as the growth rate of new product sales, the number of
Opportunity
opportunity
Through market research, explore increase R&D investment to enhance technological a quarterly basis to promptly identify changes and trends in risks. Use the JIRA project management tool to
Market
market demands, cooperate externally innovation capabilities.
to integrate innovative resources, and Medium Operating 2.Build a technological innovation platform, conduct real-time monitoring of the key links and risk points of R&D innovation projects. For R&D innovation
High Risk
identify and strategically position to long revenue integrate internal and external resources, promote projects with high risks and low returns, avoid the risks by not undertaking such projects.
term increased. management
emerging technologies. technological exchanges and cooperation, and
accelerate the process of innovation.
Indicators and objectives
Impact, risk and opportunity management
In the impact, risk, and opportunity management process, the Company has established a full-process mechanism from Objectives
identification and assessment to control: R&D-related risks are accurately identified by combining internal and external
ZKTeco formulates annual innovation objectives and long-term innovation objectives, regularly tracks objective achievement and
approaches, the degree of risk impact is assessed from multiple dimensions, effectively addressing various potential risks during the
R&D process. records it, ensuring the continuous iteration of the Company's products to meet market demands.
Internal assessment method: In combination with the "Product Development Process", analyze the
possible risks involved at each node from demand introduction, project initiation and development, Target Content Achievement
testing and verification, to production handover. Organize internal cross-departmental meetings to
involve personnel from R&D, marketing, finance, legal affairs and other relevant departments for risk Apply for no less than 50 patents within one year Achieved
assessment. At the same time, refer to historical R&D and innovation projects to analyze and
Continuously promote the deep integration of various products and software platforms,
summarize possible risk factors, and analyze possible risk items based on financial data such as In progress
create a scenario data connectivity ecosystem, and enhance the scenario customization
project return on investment and fluctuations in R&D investment ratio. and delivery capabilities of software platforms
Risk
identification External reference method: By paying attention to national and local government laws,
Increase investment in core technologies of multimodal biometrics and deepen the
regulations, policy documents and industry standards related to innovation and R&D, as well as In progress
integration of computer vision and biometric technology
researching and analyzing risk events of competitors or industry-leading enterprises, identify
possible risk items. Actively collect feedback from stakeholders such as shareholders,
Accelerate the upgrading of product globalization engineering design capabilities
employees, customers, suppliers, community organizations, and non-governmental organizations. In progress
and agile production capabilities, and enhance engineering integration capabilities
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Empowering Collaboration to Co-create a Thriving Ecosystem
R&D investment Construction of R&D platform
The Company is always guided by market demand and driven by technological innovation, taking leading core technology as the key support for
Indicators Unit 2023 2024 2025 product competitiveness. Adhering to the development philosophy of "global vision and deep cultivation of technological innovation", the
Company continuously explores cutting-edge technological directions and builds a global, diversified, and open collaborative R&D platform system.
R&D investment RMB '0,000 21,361.34 21,547.10 18,460.81 Currently, the Company has established five major R&D Centers in Dongguan-Shenzhen, Xiamen, Dalian, Hangzhou, and India. Each center
Ratio of R&D investment to focuses on specialized fields such as hardware R&D, software development, platform construction, product innovation, and algorithm
operating revenue % 10.84 10.82 8.66 optimization, continuously improving its technological innovation capabilities with highly specialized R&D positioning. Additionally, the Company
has established the Guangdong Province Doctoral Workstation and the Guangdong Biometrics and Security Technology Engineering Technology
Research Center, providing a solid guarantee for the Company's core technology breakthroughs and product iteration and upgrades.
R&D and innovation initiatives
and achievements
Encouraging R&D and innovation
ZKTeco continuously optimizes its technology innovation incentive system, having introduced the "ZKTeco Patent Application and Reward Measures"
to promote the standardized operation of technology award management. Through diverse incentive measures, employees are encouraged to actively
engage in R&D and innovation, thereby strengthening the Company's core competitiveness, expanding market share, and supporting its long-term
development. Currently, a policy matrix has been established, covering project sprint incentives, patent bonuses, project assessment bonuses, equity
incentives, and more. On a monthly or annual basis, innovative projects and outstanding talents are rewarded and recognized, fully stimulating
employees' innovative enthusiasm; concurrently, the Company aligns compensation with capabilities, conducting annual job qualification
assessments. Based on the assessment results, positions and salaries are determined, achieving a precise link between capabilities,
performance, and compensation. Guangdong Province Doctoral Workstation Guangdong Biometrics and Security Technology
Engineering Technology Research Center
Industry standard development
The Company consistently upholds its industry responsibility, actively participating in industry standardization efforts and deeply engaging in the
Industry-university-research collaboration
research, formulation, and revision of national, industry, and group standards. By leading or participating in the compilation of multiple core
standards, the Company organically integrates its technological expertise and practical experience with industry development demands, thereby The Company actively practices the industry-university-research collaborative
contributing to regulating market order and enhancing the overall technical level and quality control capabilities of the industry. innovation model, engaging in in-depth cooperation with universities. It builds
cooperation platforms focusing on fields related to technology R&D and
achievement commercialization, promoting specialized technical research through
complementary resources and synergistic advantages, thereby assisting in core
technology breakthroughs and the implementation of innovative applications.
As of the end of the reporting period, During the reporting period, ZKTeco reached a strategic cooperation with the Brain
Science and Brain-Inspired Intelligence Laboratory of the School of Biomedical
the Company has cumulatively participated in the formulation of local 27 national standards, 9 industry standards, 3 Engineering, Dalian University of Technology, and officially signed a cooperation
agreement for a brain-computer interface horizontal project. This strategic
standards, and 2 group standards. cooperation is not only a model of university-enterprise collaborative innovation
but will also inject strong impetus into the breakthrough and industrialization of
brain-computer interface technology. By building an "industry-university-research- ZKTeco and Dalian University of Technology
application" collaborative innovation ecosystem, it will accelerate the tackling of Conduct Industry-University-Research
key technical challenges in the industrialization of brain-computer interfaces and Collaboration
promote more cutting-edge achievements to the market.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Empowering Collaboration to Co-create a Thriving Ecosystem
Intellectual property Focus of Measures Specific Initiatives
protection
Exp ert Engage a standing legal counsel specializing in intellectual property law to serve as a member of the Company's Intellectual Property
assistance Management Leadership Group and assist in the Company's intellectual property protection.
Management system
Training and Establish an Intellectual Property Promotion and Protection Fund, to be used for annual intellectual property training, promotion, and other
ZKTeco strictly complies with laws and regulations such as the "Patent Law of the People's Republic of China", the "Copyright Law of the People's dissemination related activities. Develop training and awareness plans for employees to institutionalize intellectual property protection awareness initiatives.
Republic of China", and the "Anti Unfair Competition Law of the People's Republic of China". It attaches great importance to its own intellectual
For actions that infringe upon the Company's intellectual property rights or cause losses, relevant responsible persons will be held accountable,
property protection, strengthens the utilization of patent information, and avoids infringing on the intellectual property rights of others. The Company has Accountability
and those suspected of committing a crime will be transferred to judicial authorities.
formulated systems such as the "Intellectual Property Management Measures", the "Patent Management Measures", the "Copyright Management
Measures", the "Trade Secret Management System", and the "Trademark Management Measures" to strengthen the management of intellectual property
rights. The Company has established an Intellectual Property Department to manage intellectual property-related work, and other relevant business
departments should designate part-time personnel for intellectual property management. During the reporting period, Xiamen ZKTeco has passed the
certification of intellectual property management system. Ethics in science
and technology
Indicators Unit 2023 2024 2025
Cumulative number of authorized The Company places great emphasis on the governance of scientific and technological ethics. In the R&D and application processes of cutting-edge
Item 858 963 1,193
patents technologies such as brain-computer interfaces, it consistently upholds the ethics-first principle, strictly adhering to relevant national laws, regulations,
Number of patent applications Item 142 204 225
and ethical guidelines. This ensures that all scientific and technological innovation activities are conducted within a legal, compliant, and responsible
Number of effective patents per
million yuan of revenue Item 0.44 0.48 0.56 framework.
Divided by patent type
Cumulative number of authorized
invention patents
Cumulative number of authorized
Item 149
Supply chain management
utility model patents Item
Cumulative number of authorized
design patents Item 464 544 668 Supply chain
Other intellectual property rights management system
Cumulative number of software 675 739 829
copyrights Item
Number of software copyrights per
million yuan of revenue Item 0.34 0.37 0.39
Cumulative number of trademarks Item 1,181 1,220 1,297
Governance
To standardize supplier management, improve the Company's supplier classification and grading management mechanism, and formulate
differentiated supplier management strategies, the Company has developed institutional documents such as the "Supplier Management Control
Procedure" and the "New Supplier Selection Certification Procedure", which clearly stipulate the management requirements and execution
procedures for various aspects including supplier admission and certification, classification and grading, performance appraisal, daily
Protection measures management, and elimination and exit. Furthermore, the Company leverages digital systems like SAP and SRM to intelligently manage
suppliers, thereby enhancing supply chain visibility, collaboration efficiency, operational efficiency, and the scientific basis of decision-making.
All departments and levels of leadership within the Company fully recognize the importance of intellectual property and are determined to prevent and
eliminate the loss of intellectual property caused by improper conduct. The Company has established a supply chain management organizational system with clear responsibilities and efficient collaboration to
ensure the effective implementation of supplier management strategies. The Resource Development Department is primarily responsible for early-stage
Focus of Measures Specific Initiatives supplier sourcing, certification, and introduction. The Executive Procurement Department is responsible for order execution and performance tracking.
The Quality Department collaborates with the Executive Procurement, Resource Development, R&D, Material Certification, and Engineering
Designate confidential areas, mark confidential documents with security classifications, and restrict access. Employees Departments to jointly participate in supplier assessment and review.
Confidentiality sign commitment letters and Confidentiality Agreements upon onboarding, and return all relevant materials upon
management departure.
For scenarios such as cooperation and commissioned development, sign written contracts clearly defining intellectual Supplier access
Contractual property protection clauses. Technical contracts shall be signed by the legal representative or their authorized agent after The Company manages the access of suppliers by setting corresponding standards and approval processes in supplier sourcing, supplier certification
standards review. and supplier selection, ensuring that the selected qualified suppliers meet the Company's business needs in terms of quality, delivery, price,
compliance and trade security. The Company has set minimum access standards for suppliers for both production and non-production procurement, and
Risk Establish an intellectual property risk early warning mechanism and track domestic and international intellectual set minimum requirements for supplier enterprise size, registered capital, industry experience, system certification, product environmental protection,
management property trends. Upon discovering infringement, promptly address it through administrative or judicial channels.
etc. for different materials.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Empowering Collaboration to Co-create a Thriving Ecosystem
Supplier assessment
The Company has established a supplier performance management team, which is organized and led by the Quality Department. It
mainly includes departm ents such as the Executive Procurement Department, the Resource Development Department, the Quality In 2025,
Department, the Material Certification Department, and the R&D Department, responsible for conducting monthly performance
assessments of suppliers. For suppliers who score last 5 in consecutive assessments, the Company has conducted interviews or on-site ZKTeco had a total of 208 cooperative suppliers.
coaching, and output the "Minutes of Supplier Quality Problem Counseling Meeting". For suppliers who score last 5 in consecutive
assessments, the Company has considered reducing orders and eliminating them.
Supply chain management personnel training
Supplier classification The Company highly values the professional capabilities and quality improvement of its
Based on the "four-quadrant" method of material classification, the Company classifies suppliers into four categories: core suppliers, supply chain management personnel, and is committed to building a professional and
leverage suppliers, bottleneck suppliers, and general suppliers. Differentiated management strategies are adopted for different categories
compliant procurement team. The Company designs a systematic training program for all
of suppliers to enhance the efficiency and level of supplier management.
members of the Procurement Center. The training content fully covers the foundational and
high-performance aspects of supplier management, specifically including supplier relationship
management, sourcing strategies, cost and financial analysis, negotiation skills, social
responsibility, logistics and inventory management, quality control, and product development,
High among other key modules. Through training, procurement personnel's professional judgment
capabilities, risk identification capabilities, and compliance operational awareness in full
Procurement amount
lifecycle supply chain management are systematically enhanced, enabling them to more
Leverage suppliers Core suppliers effectively execute the Company's supplier management system and promote continuous
optimization and value creation in the supply chain.
Supply Chain Management Training
General suppliers Bottleneck suppliers
Strategy
Low
Low Supply risk High Risk/ Risk/Opportunity
Impact
Opportunity Likelihood Time Expected Financial Impact Countermeasures
Type/ Description Range
Supplier Classification Diagram
Supplier review Domestic and international
Environmental Protection
environmental regulations (e.g.,
Policy and legal risks
hazardous substance restrictions and Agreements and commitment letters
The Company has established a supplier review mechanism combining regular and irregular assessments to continuously monitor suppliers' carbon footprint requirements) are within the "Supplier Management
comprehensive capabilities and compliance status. The review content fully covers aspects such as quality, delivery, systems, and social becoming increasingly stringent. If
Risk
suppliers fail to comply with new Operating costs increased, Control Procedure";
responsibility. The Company also implements flexible review policies for some high-quality suppliers who have obtained authoritative certifications or High Long term
regulations in a timely manner, this and operating 2.Strengthen compliance audits
hold a leading position in the industry, choosing whether to conduct on-site reviews based on actual circumstances. could lead to the Company's products
revenue decreased. during supplier qualification and
being non-compliant, resulting in fines,
recalls, or market access restrictions. periodic reviews.
Supplier Review Rating Table 3.Facilitate the green transition of
at Development Site suppliers.
Category Level Score
Excellent Level A 90.1-100 points 1.Evaluate and progressively
Deepen data connectivity and
implement the supply chain
collaboration with key suppliers through
Digital transformation of
Good Level B 80.1-90 points collaboration information system
digital tools to improve demand forecast
the supply chain
Medium Operating costs project.
Opportunity
accuracy, inventory turnover efficiency, Medium
Qualified Level C 70.1-80 points term are reduced.
and the speed of response to anomalies,
with core suppliers.
Improved after thereby strengthening overall supply
coaching Level D 60.1-70 points 3.Establish a more agile supply and
chain resilience.
demand communication mechanism.
Unqualified Level E Below 60 points (inclusive)
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Empowering Collaboration to Co-create a Thriving Ecosystem
Impact, risk and opportunity management Building a responsible
supply chain
In order to ensure effective production, ensure the supply of purchased materials, and prevent unexpected losses caused by
shortages or poor quality of purchased materials, the Company has formulated the "Supplier Emergency Control Procedure". Through
process planning, arrangements are made in advance to quickly respond to problems and ensure timely delivery of products to
customers. Supplier ESG management
The Company has established an emergency response team, with the General Manager of the Supply Chain Committee The Company is committed to deeply integrating ESG requirements into supplier full lifecycle management. It has formulated the
serving as the team leader, and the Resource Development Manager, Executive Procurement Manager, Material Certification "CSR Agreement" as a core normative document for cooperation with suppliers, explicitly requiring all contracted suppliers to comply with high-standard
codes of conduct in areas such as labor rights, occupational health and safety, environmental protection, and business ethics.
Department Manager, Quality Manager, and PMC Manager as team members to coordinate and handle various emergencies that
threaten normal supply during mass production. For different emergency events, the Company has developed targeted emergency Regarding labor rights, the Company requires suppliers to strictly prohibit the use of child labor, forced labor, and any form of discrimination, and
plans and clearly defined various emergency measures. In the event of an emergency, the emergency response team decides stipulates reasonable working hours, compensation and benefits, and freedom of association. In the health and safety domain, the Company requires
whether to implement the emergency plan based on the current procurement situation of the Company's production plan and suppliers to establish comprehensive fire safety, chemical management, occupational safety, and public health management systems. Environmental
unifies the command of emergency response. protection clauses cover pollution control, energy conservation and emission reduction, and product environmental compliance, among other aspects.
Additionally, the Company has clear requirements for suppliers in the area of business ethics, including integrity in business operations, anti-corruption,
information disclosure, and privacy protection.
To ensure the effective implementation of ESG requirements, the Company not only considers the signing of the agreement as a prerequisite for
supplier access and cooperation but also explicitly defines in the agreement suppliers' ESG management responsibilities for their own
Leader: supply chains (tier-two suppliers, requiring them to establish and promote the extension of CSR management downstream. For violations of
General Manager of the "CSR redline requirements", the Company has stipulated clear liabilities for breach of contract, including liquidated damages and order termination,
Supply Chain Committee thereby forming a binding management closed-loop. The Company strives to build a responsible, sustainable, and risk-controllable supply chain
ecosystem.
Conflict mineral control
The Company is committed to ensuring that the raw materials used are compliant in origin, transparent, and non-hazardous through strict supply chain
Member: Resource Member: Executive Member: Material Member: Quality Member: PMC due diligence management. We require suppliers to sign a "Letter of Commitment for Not Using Conflict Minerals" in the new supplier
Development Manager Procurement Manager Certification Manager Manager identification and selection procedure document, and strictly control the Company's raw material sources.
Department Manager
We explicitly require suppliers to ensure that metals such as gold (Au), tantalum (Ta), tin (Su), and tungsten (W) contained in all products and
materials they provide (including raw materials, components, packaging, etc.) do not involve extraction, processing, and trade from the Democratic
Emergency response team Republic of Congo and its surrounding conflict-affected countries and regions. Suppliers must commit to establishing and implementing an
effective supply chain traceability management system to identify and ensure the legality of raw material sources. Furthermore, suppliers are
obligated to cooperate with the company in conducting relevant investigations and on-site audits, and truthfully provide the required information.
Should suppliers violate their commitment, they shall bear the losses and risks caused to the Company and its customers. Through systematic
control measures, the Company makes every effort within commercially reasonable limits to prevent potential human rights and environmental risks
in the supply chain and fulfill its commitment to conflict mineral control.
Indicators and objectives
Target Content Achievement Treating small and medium-sized
No significant risks or impacts occurred in the supply
Achieved
enterprises (SMEs) equally
chain links.
In the process of supplier cooperation and procurement, ZKTeco adheres to the principles of fairness and impartiality, does not set limits on supplier
size, and treats all partners equally, ensuring they enjoy equal opportunities in qualification, evaluation, and transactions. During the reporting period,
the Company had no overdue payments to SMEs.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Empowering Collaboration to Co-create a Thriving Ecosystem
Product and service safety and quality Strategy
ZKTeco's Quality Management Department regularly reviews the quality and service risks the Company may face, recording dimensions such
as risk description, risk impact, and risk level, and forming the "Risk and Opportunity Assessment and Analysis Table".
Quality assurance
system Risk/
Risk/Opportunity
Impact
Opportunity Likelihood Time Expected Financial Impact Countermeasures
Description
Type Range
Governance 1. Insufficient ability to detect 1. Implement material skills training,
problems;
Quality control risk
optimize testing equipment, and
ZKTeco prepared the "Quality Management Manual" as a guiding document for the Company to implement quality management, and carry out quality 2. Untimely and unsystematic optimize sampling methods.
planning, quality control and quality improvement activities following the principle of customer satisfaction, in accordance the "ISO 9001:2015 handling of material anomalies; Operating costs 2. SQE is responsible for handling all
Short to material non-conformities.
Quality Management System Requirements" and the "QC080000:2017 Hazardous Substance Process Management (HSPM System Requirements" 3. Risk of incoming materials Medium increased and
medium 3. Conduct hazardous substance
standards, and combined with the actual situation of the Company. The Manufacturing Center is the main responsible department for the exceeding hazardous substance term operating revenue
testing for each batch of raw
Company's product quality management. The Company regularly assesses the Quality Manager's performance, with assessment targets limits. decreased. materials, and sign an Environmental
including the number of major quality issues, customer quality losses, and the number of quality issues at the factory exit. The Company's General Protection Agreement with suppliers.
Manager is responsible for overseeing the operation of the quality management system and organizing the implementation of internal quality
management system audits. As of the end of the reporting period, the Company, ZKTeco Dongguan Branch, Guangdong Zkteco, and Xiamen ZKTeco
Risk
have all passed ISO 9001:2015 quality management system certification.
Customer service risk
provide effective solutions, such as
replacing machines or offering
Quality policies: upgrade packages.
effectively resolved. Operating costs
proactively understand issues, and
Continuously innovate technology; continuously improve product quality; always pursue customer satisfaction. Low offer assistance.
medium operating revenue
processed in a timely manner. 3.Through the management
Use environmentally friendly materials, prevent pollution, make continuous improvements, and meet regulations and customer requirements! term
the quality service personnel of each
business unit.
The continuous emergence of new Continuously pay attention to
technologies, new materials and new
market demands and the
processes provides the cCompany
Technical opportunity
with technical support to enhance the development trends of new
safety and quality level of its technologies, promote technological
Opportunity
products. Through technological Medium Operating revenue exchanges and cooperation, cultivate
innovation, the Company can develop to long increased. talents, enhance the Company's
High
safer, more efficient and more term
technological level, and develop
environmentally friendly products,
high-quality new products.
thereby strengthening its market
competitiveness.
Impact, risk and opportunity management
ZKTeco ZKTeco Dongguan Branch Guangdong ZKTeco Xiamen ZKTeco
The Company places great emphasis on product and quality risk management, having established a full-process control system
covering risk identification, assessment, monitoring, and management. It clarifies the responsible entities and execution standards for
each stage. Through measures such as institutional norms, audit supervision, and process optimization, combined with industry
characteristics and operational realities, the Company systematically prevents product and service quality risks, ensuring the safety and
stability of products and services.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Empowering Collaboration to Co-create a Thriving Ecosystem
Product quality
management measures
In accordance with product and service safety risk management requirements, a risk control system has been established, and
Risk documents such as the "Risk and Opportunity Assessment and Analysis Table" have been formulated. It specifies that
identification
professional departments are responsible for regularly collecting internal and external product quality risk information Full lifecycle management
and organizing special risk identification work in a timely manner based on the Company's operational realities, to
comprehensively identify potential risk points. ZKTeco establishes a product full lifecycle management system in accordance with the "Quality Management Manual". This system ensures
supplier compliance review and 100% material inspection for incoming materials, achieves process standardization and precise process monitoring
during production, and implements finished product inspection and standardized protection during delivery, thereby continuously meeting
Utilizing professional assessment and analysis tools, identified product and service quality risks are systematically
Risk customer and legal/regulatory requirements.
assessment assessed, clarifying risk level classification standards. Graded management is implemented based on assessment results,
providing a basis for the formulation of subsequent risk response measures. Product Lifecycle Stages Control Measures
Design and Define product quality and HSF requirements, conduct feasibility reviews and design verification, control
Development Stage design changes, and verify the compliance of new materials and new suppliers.
Risk Continuously track product and service quality indicators, and monitor potential risk points in daily operations, to ensure dynamic
monitoring and controllable risks.
Procurement and Review supplier quality and HSF systems, collect supplier HSF-related information, establish a qualified
Supply Stage supplier list, and implement monthly evaluations and annual audits.
Establish product and service quality management processes, clarify risk response responsibilities and disposal mechanisms, and Production and Develop work instructions and control plans, identify product HSF status, implement first article and in-
formulate differentiated control measures for different levels of risk; combining industry policies, regulatory requirements, and the Manufacturing Stage process inspections, and conduct equipment preventive maintenance.
Risk
management market competitive environment, optimize risk management methods, and strengthen cross-departmental collaboration, to ensure
product and service quality meets standards. Inspection and Execute incoming, in-process, and outgoing inspection specifications, regularly calibrate testing
Release Stage equipment, and release qualified products only after approval by authorized personnel.
Delivery and After- Standardize product handling, storage, and protection, track delivery performance, collect customer
Indicators and objectives sales Stage feedback and complaints, and handle non-conforming products by taking corrective actions.
Indicators
Indicators Unit 2023 2024 2025
Product qualification rate % 99.8 99.7 99.7
Number of annual quality internal audits Times 1 1 1
Number of spot checks by third-party
Times 29 41 80
organizations
Objective
Target Content Achievement
Product qualification rate ≥99% Achieved
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Empowering Collaboration to Co-create a Thriving Ecosystem
Product recall ZKTeco's strategic deployment in Saudi Arabia
Case
ZKTeco formulated the "After-sales Quality Exception Handling Specification" and established a product traceability management system. The In May 2025, ZKTeco and AICTEC, a Saudi main board listed company, signed a strategic
Quality Service Department leads the initiation of product recall efforts, forming a special cross-departmental team with the Quality Engineering cooperation memorandum in Riyadh. The two parties will integrate ZKTeco's strengths
in biometrics, IoT, and video sensing technologies with AICTEC's localized operational
Department, R&D, Manufacturing, Warehousing and Logistics, etc., to complete the investigation of affected products, formulation of recall plans, and
advantages to establish a smart manufacturing base in Saudi Arabia. The first phase of this base
execution through to after-sales delivery.
will focus on the production of biometric access control systems, smart security inspection
equipment, and video sensing solutions. After the project is put into operation, it is
expected to have an initial annual production capacity of 100,000 high-end devices, which
Recall Process Specific Measures
will not only improve the accessibility of the Company's products but also contribute to
promoting digital transformation in the Middle East.
Signing Ceremony of the Strategic
The Quality Service Department identifies severe/major quality issues requiring recall, reports them
Recall Initiation Cooperation Memorandum
within 4 hours, and forms a cross-departmental special recall team.
The Quality Engineering Department leads the investigation of all affected products across the
Full-Scope
Investigation
entire supply chain, including inventory at various plant sites, products in transit, shipped Customer service
products, and client-side product information.
management
The special team discusses and determines the recall method, execution scope, and responsible
Plan Formulation
parties, while simultaneously formulating emergency response measures for the issue.
Customer service system
All relevant departments carry out product recovery, repair/replacement, and other dispositions
Plan Execution
according to the plan, ensuring the completion of emergency handling within 72 hours.
Domestic market
For domestic customers, ZKTeco has established systems such as the "After-sales Service
Effectiveness Perform reliability verification on products after disposal, and the Quality Service Department will
Management Specification for China Business Group", the "After-sales Service Process for
Verification conduct special satisfaction follow-up visits with customers affected by recalls.
China Business Group", the "After-sales Quality Exception Handling Specification" and the
"Product Warranty Policy of ZKTeco" to standardize product after-sales service management and
after-sales exception handling process, and improve customer satisfaction. The Company has been
certified as a five-star service provider in accordance with the "Evaluation System for After-Sales
After-Sales Service
Service of Commodity" (GB/T 27922-2011).
Certification Certificate
Hazardous substance monitoring
Overseas market
ZKTeco has formulated the "Environmental Hazardous Substance Management Regulations" to strictly control the content of hazardous ZKTeco's overseas business revenue accounts for a relatively large proportion due to a large number of overseas customers. Therefore, the
substances in its products and uses professional equipment to test the content of hazardous substances. The Company requires suppliers to cooperate Company has developed a customer service management system that is different from the domestic market. We have considered the
with the implementation of the "Environmental Hazardous Substance Management Regulations", sign the "Commitment Letter of Not Using characteristics of multilingualism, multiculturalism, and multi-time zones to fully improve customer satisfaction. Different overseas
subsidiaries have developed customer service systems that are adapted to local policies. For example, the Mexican subsidiary has developed
Hazardous Substances", and strictly abide by relevant regulations during the supply of raw materials and production process, not to use any
systems such as "Politica-de-Garantias-2023" (after-sales maintenance policy) to better protect customer rights and interests.
hazardous substances exceeding the limit standards, to ensure that the supplied products comply with the EU RoHS Directive and other relevant laws
and regulations.
Overseas market
Enhancing product accessibility customer service system
The headquarters team provides services to global branches and customers;
ZKTeco upholds a global development philosophy, continuously enhancing product accessibility in the international market through the
Local teams of branches provide localized pre-sales, in-sales, and after-sales services to local distribution customers and
ongoing improvement of its overseas R&D and business layout. Leveraging a globally collaborative R&D system and a market-oriented service their customers;
network, we drive the localized adaptation of products and technologies, optimize supply chain and delivery efficiency. This enables products to Local teams of branches and various distribution agent teams jointly provide various services to local customers,
reach global target markets more efficiently, providing convenient and timely product support and services to customers in different regions, thereby including but not limited to online and offline training, experiential interaction, and after-sales service, ensuring
comprehensive coverage and timely response to customer needs.
substantially enhancing product coverage and availability in the international market.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Empowering Collaboration to Co-create a Thriving Ecosystem
Customer satisfaction survey
Customer service measures
Customer feedback is an important source of information for ZKTeco Customer Satisfaction Year-on-Year Comparison
to continuously optimize its services, and the Company attaches great Satisfaction = (Total Key Presses - Key Press 0) / Total Key Presses
Communication channel development importance to and continues to carry out customer satisfaction 99.7
management. We conduct customer satisfaction surveys on an annual, 99.6 99.62 99.62
quarterly, or monthly basis through telephone, WeChat, QQ, 99.5 99.5 99.48 99.48 99.44
questionnaire, and other survey methods. The survey targets core 99.4 99.41 99.39
Intelligent service 99.34 99.36 99.38
agents in China, large end customers, overseas subsidiaries, and 99.3 99.29
management
customers related to quality ticket customer complaints. During the 99.2
We have opened a national technical service hotline through cloud services, and the service center has set up 80 agents to reporting period, the Company collected customer satisfaction data for 99.1
intelligently record inbound calls, outbound calls, and business transactions. the 400 hotline and generated a satisfaction survey report. The
customer satisfaction via 400 hotline was 99.51%, a slight increase
compared to last year. 1月 2月 3月 4月 5月 6月 7月 8月 9月 10 月 11 月 12 月
We have created a WeChat official account of "ZKTeco Customer Service Center", where customers can consult online, Customer satisfaction in 2024 (%) Customer satisfaction in 2025 (%)
communicate and operate after-sales maintenance, equipment password reset and other work online.
Survey results of customer satisfaction via 400 hotline
We have established an after-sales service management system website, where customers can operate product after-sales
management, effectively reducing communication processes and improving work efficiency.
Indicators Unit 2023 2024 2025
Number of customers Nos. 3,511 3,778 3,842
Through the online customer service system, common questions are classified and answers are edited, covering multiple aspects participating in the survey
such as attendance, access control, video surveillance, and security inspections. Automatic responses can be triggered by Customer satisfaction % 93 95 94.3
identifying key words.
National technical service hotline: 4006900999 Customer service training
WeChat official account: ZKTeco Customer Service Center ZKTeco continuously conducts comprehensive, multi-level customer service training initiatives. By empowering through systematic training, it
After-sales service management system: https://cn.zkteco.com/cn/product Online constantly strengthens the professional competence and service awareness of its service team, standardizes service processes and communication
protocols, and improves the efficiency of responding to and handling various customer needs. The training consistently upholds the philosophy of
customer service system: https://www.sobot.com/console/login customer first, focusing on the continuous optimization of service quality. It is dedicated to providing global customers with a superior, efficient, and
considerate service experience, thereby contributing to the steady improvement of the Company's customer service level and the continuous
enhancement of its brand value.
Customer complaint response mechanism
ZKTeco has formulated the "Customer Complaint Acceptance System for China Business Group", which clarifies the customer complaint
acceptance regulations related to product or service quality in the China Business Group. The Company adheres to the principle of "customer first,
quality first, high-quality service, and timely response" in the after-sales service and technical support. When receiving customer complaint calls, we
calm their emotions, communicate complaint content with them, and keep records. We promptly handle them within the Company and provide
feedback on the results to the complaining customers. We have set requirements for the deadline for handling customer complaints to ensure that
their demands can be met in a timely manner. After the complaint handling is completed, we fill out the "Customer Complaint Handling Record
Form" and the "Quality and Service Communication Record", and archive and save the documents generated during the complaint process, to
Training Scene
continuously improve product quality and service level.
During the reporting period,
During the reporting period,
the Company conducted 86 specialized training sessions on customer complaint response, covering 729
the Company received a total of 107 complaints, of which 97 were resolved, and 10 were deemed participants, with a total training duration of 223 hours. It also conducted 27 assessments on customer
unsubstantiated. complaint response, achieving a pass rate of 96.08%.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Empowering Collaboration to Co-create a Thriving Ecosystem
?
Data security and privacy protection Top management of
&RPSDQ\PDQDJHPHQW
the Company
,QIRUPDWLRQ VHFXULW\ Information Management
PDQDJHPHQWV\VWHP Committee
*RYHUQDQFH
([HFXWLRQOD\HU
Business Unit Manager
System construction
The Company has formulated multiple information security and privacy protection related systems and regulations in strict accordance with
Information Promotion Group/Information Group members
laws and regulations such as the "Cybersecurity Law of the People's Republic of China" and the "Data Security Law of the People's Republic of Technology Service Group
China", covering personnel security management, access control management, network and communication security, operational security,
Management
information security continuity management, information asset protection, privacy related management, etc. representative
Members of each
'DWD6HFXULW\DQG3ULYDF\ department
Information Security and Privacy Management Information Security Continuity Management
Manual Regulations
Information Security, Information Technology Service and Privacy Security Management System
Personnel Security Management Regulations Personal Information Management Regulations Diagram for Xiamen ZKTeco
Software Development Security Management 6\VWHPFHUWLILFDWLRQV
Access Control Management Regulations
Regulations
The Company actively carries out information security and privacy protection related management system certifications. ZKTeco has passed ISO
Cybersecurity Management Regulations Equipment Security Management Regulations
certification. Xiamen ZKTeco has passed ISO 27001:2013 information security management system certification, ISO 27701:2019 privacy
Physical Environment Security Management
Operational Security Management Regulations information management system certification, ISO 27017:2015 cloud service information security management system certification, and
Procedures
ISO 20000-1:2018 information technology service management system certification, all of which are valid during the reporting period.
Information Security and Privacy Incident Information Asset Protection Management
Management Regulations Procedures
Management organizations
The Company has established an Information Security and Privacy Management Committee and an Information Security Management
Working Group. With the vision of protecting the Company's core assets and preventing information leakage, the Company has established an
information security and privacy management system, which has been comprehensively promoted and implemented within the Company. The
Information and Product Security Committee is a Promotion Group under the highest organization of the Company's information security, responsible
Information Security Privacy Information Information Security Privacy Information Cloud Service Information
for the overall information security management of the Company and for promoting the implementation of information security, and other departments Management System Management System Management System Management System Information Security Technology Service
Certificate of ZKTeco Certificate of ZKTeco Certificate of Xiamen Certificate of Xiamen Management System Management System
cooperate to complete information security related work. ZKTeco ZKTeco Certificate of Xiamen Certificate of Xiamen
ZKTeco ZKTeco
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Empowering Collaboration to Co-create a Thriving Ecosystem
Information security training
Impact, risk and opportunity management
ZKTeco regards information security training as a crucial component in building an enterprise information security management defense line.
Through systematic, regular, company-wide training, it continuously enhances employees' information security awareness and protection ZKTeco has formulated the "Information Security Risk Assessment Guidelines", the "Personal Privacy Risk Assessment Guidelines", and the
capabilities, laying a solid foundation for safeguarding the digital assets of the Company, customers, employees, and partners. "Information Confidentiality Classification Guidelines" to assess and manage information security risks and personal privacy risks.
Xiamen ZKTeco has formulated the "Information Confidentiality Classification Guidelines" and the "Information Security Risk
Management Procedures" to identify and determine the confidentiality levels of various information in the Company's business
activities. The confidentiality levels from level I to level V are classified as top secret, confidential, internal restriction, internal disclosure, and
external disclosure.
We summarize information assets of various departments and compile the "List of Information Assets", and classify and rate them based on their
characteristics (confidentiality, integrity and availability. For information assets at level III or above, we assess potential risks, including risk
likelihood, consequences and asset level, form preliminary risk levels, determine final risk levels after taking measures, and record them in the
"Risk Assessment Form"; develop a risk management plan for level 3 and above risk assets and risk items, and prepare a "Risk Assessment Report
& Management Plan".
Emergency event management
The Company has established an information security emergency management system and formulates systems such as the "Business Impact
Analysis (Information Security", the "Information Security Continuity Management Regulations", and the "Information Security Continuity
Management Plan", clarifying information security assurance specifications. Concurrently, the Company has developed and implemented
Information Security Training of Xiamen ZKTeco
multiple emergency plans to standardize the emergency response procedures for network and information security incidents, thereby fortifying its
security assurance system. The Company regularly conducts drills on data backup, business continuity, and network equipment emergency response
to effectively enhance its information security risk response capabilities.
Strategy
Information security audit
Risk/ Impact
Risk/Opportunity Expected
Opportunity Likelihood Time Countermeasures
Description Financial Impact The Company has formulated regulations such as the "Internal Audit Procedures for Information Security Management System",
Type Range
"Information Security Risk Management Procedures", and "Information Asset Protection Management Procedures". It conducts regular
If the massive amounts of biometric 1.Strictly implement the ISO internal audits on information security and issues the "Internal Audit Report for Information Security and Privacy". At the same time, the
data, identity information, and 27001/27701 certified information Company regularly hires external professional third-party organizations to conduct on-site audits of its information security management
Data breach risk
commercial data handled by the security management system; system and privacy information management system, summarizes the discovered problems, and provides suggestions. The Company
Company were to suffer a large-scale 2.Comprehensively apply end-to-end has compiled the "Corrective Action Requirements" report for the Company's reference.
Risk
breach, it would lead to damage to core Short to Operating revenue encryption (AES-256) and irreversible
intellectual property, a collapse of Medium medium decreased and operating hashing technology in data transmission
term costs increased. and storage;
customer trust, and could trigger class-
action lawsuits and substantial 3. Regularly conduct penetration testing Indicators and objectives
regulatory fines. and security audits, and establish and drill
emergency response plans.
Indicators
High-sensitivity industries such as Indicators Unit
Market expansion opportunities
finance, government, and healthcare
Dongguan Xiamen Dongguan Xiamen Dongguan Xiamen
have extremely stringent requirements
for data security and privacy protection. develop benchmark integrated solutions for Number of training sessions on data
The Company's digital identity Medium data security and identity authentication. security and customer privacy Times 12 4 12 5 13 2
Medium to long Operating revenue increased. protection
Opportunity
authentication system, built upon 2.Strengthen ecosystem collaboration with
blockchain, multimodal BioCV, and term
industry authorities and major integrators to Number of participants in practice and
large model technologies, can provide
jointly expand the market. training on data security and customer Person-time 1,005 664 957 253 1,734 195
higher levels of security and trusted
privacy protection
verification, helping to break through
high-barrier, high-value niche markets. Employee coverage of practice and
training on data security and customer % 34 71 50 74 76 68
privacy protection
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Empowering Collaboration to Co-create a Thriving Ecosystem
Objective Information security technology guarantee
Target Content Achievement
Relevant personnel sign Confidentiality Agreements.
Target value of Level 4 incidents (security accidents): 0 times per year Achieved
Install ESMC port management software and antivirus software on terminals to prevent virus and
ZKTeco's information security technology
Number of Trojan attacks.
Target value of Level 3 incidents (security incidents): no more than 3 Achieved
information times per year Set up a firewall at the entrance of the external network to resist external virus and Trojan intrusion.
security and
Target value of Level 2 incidents (minor incidents): no more than 5 Achieved
privacy incidents
guarantee measures
times per year
Install AsiaInfo antivirus software on the server.
Target value of Level 1 incidents (situations or weaknesses): no Achieved
more than 10 times per year Use internal network system. External network needs to be accessed through VPN.
Number of infrastructure physical operation failures ≤ 5 occurrences Achieved
Achieve product data/sensitive information encryption.
Major virus incidents ≤ 1 occurrence Achieved
Restrict some personnel's internet access.
Anonymize product user data.
Normalized security Access control (develop the "Access Control Management Regulations")
governance measures
Information security technology cooperation
Data security protection ZKTeco actively engages in data security technology cooperation with external organizations to comprehensively strengthen the Company's capabilities
in threat intelligence collection, vulnerability scanning, risk assessment, and other aspects. In April 2025, the Company invited Grandall Law Firm to
The Company conducts comprehensive risk identification and analysis for supplier information, customer, and employee data, and formulates targeted provide internal data compliance training. In August 2025, the Company participated in the Summary of the 2025 Dongguan Industrial Enterprise
Cybersecurity (Data) Online Inspection Activity and the Special Training Session on Network Security in the Industrial Sector, organized by the
protective measures to ensure data security and privacy rights.
Municipal Bureau of Industry and Information Technology. In September 2025, the Company participated in a public welfare special training session on
network security and reputation protection, organized by the Office of Cyberspace Affairs of the CPC Dongguan Municipal Committee. In November
Symposium, organized by the Municipal Bureau of Industry and Information Technology.
Supplier information The Company keeps confidential paper versions of supplier information, while electronic
protection versions are stored in the NAS and access permissions are set. Xiamen ZKTeco
classifies suppliers, sets different information security requirements for the
confidential information involved by different suppliers, and takes targeted measures. Customer privacy
protection
For customer data related to R&D technical support, the Company has formulated
Customer data
protection the "Technical Support Service Customer Data Privacy Management Rules" to clarify the ZKTeco respects and protects customer privacy, strictly adhering to principles such as accountability, clear purpose, choice and consent, minimum
work requirements of technical support personnel. In addition, we require customers
necessity, ensuring security, data subject participation, and openness and transparency. It is committed to safeguarding customer personal information
to sign a "Privacy Protection Statement for Technical Support Services", reminding
them to backup and clear device data before sending the product for repair; for special security throughout the entire lifecycle of products and services. The Company has formulated the "Product Privacy Policy". It will sign a "Confidentiality
circumstances where it cannot be cleared, customers need to sign relevant statements, and Agreement" before conducting business cooperation with customers, requiring the confidentiality of information between both parties. Furthermore, the
the Company's technical support personnel will clear the data and keep records Company has formulated the "After-Sales Service System Privacy Policy" and the "After-Sales Service System Management System" to implement
after processing.
standardized full-process management for the collection, use, storage, sharing, and deletion of personal information. The Company only collects
information when providing necessary services such as after-sales maintenance to customers, in accordance with the principle of minimum necessity, and
ensures data security through dual technical and management measures. We fully respect and safeguard customer rights. Customers can conveniently
Employee data The Company stores paper versions of employee data in the document room, sets access access, correct, or delete their personal information through the "ZKTeco Customer Service Center" mini-program. At the same time, we clearly restrict
protection control and permissions, and clears them upon expiration; electronic files are stored in the the scope of personal information use and sharing. Unless required by law or with explicit customer consent, it is prohibited for purposes other than after-
NAS and only support internal network access. Access permissions are set and relevant
sales service.
data is backed up weekly.
Each overseas subsidiary has established relevant policies and systems to protect customer information. For example, the Mexican subsidiary has
formulated the "Aviso-de-Privacidad-Integral (Comprehensive Privacy Statement)", the "Politica-de-Privacidad-ZKTeco-LATAM (Privacy Policy)", etc.,
Visitor data
to standardize customer privacy protection.
The Company uses the Shang'an Yuntong System for visitor invitations, and visitors
protection register and verify their information through this system. The Company will delete relevant
data within 90 days after visitors leave.
Joining Forces and
Advancing Together to
Build a Better Society
ZKTeco adheres to a people-oriented approach and is committed to building a
safe, healthy, and inclusive work environment. By establishing and improving an
occupational health and safety management system, facilitating open democratic
communication channels, and creating diverse growth opportunities, it
effectively safeguards employees' legitimate rights and interests, continuously
empowers employees, and promotes the simultaneous growth of individuals and
the Company. At the same time, we actively fulfill our corporate social
responsibility, sincerely giving back to society through practical actions
such as volunteer activities and charitable donations, thereby achieving a
harmonious unity of employee well-being, corporate progress, and a beautiful
society.
Responsive SDGs
No Poverty Good Health and Well-being Quality Education
Gender Equality Decent Work and Reduced Inequalities
Economic Growth
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Joining Forces and Advancing Together to Build a Better Society
Work safety
Occupational health and safety management
Safety and health Safety hazard investigation
management system The Company has established and improved a safety inspection management mechanism, and set up a dedicated safety inspection team.
By combining self-inspections with special inspections, regular inspections with surprise inspections, and inspections with rectifications, it
continuously eliminates unsafe factors related to people, machines, and the environment in production. Each production department strictly
The Company has always adhered to the concept of "safety first, prevention first, and comprehensive governance", taking work safety as the implements the daily safety inspection system, focusing on checking the operating conditions of electrical equipment, the safety
primary work focus. In strict accordance with relevant laws and regulations such as the "Occupational Disease Prevention and Control Law performance of mechanical equipment, the integrity of fire-fighting facilities, the implementation of safety protection measures, and the
of the People's Republic of China", the "Work Safety Law of the People's Republic of China" (hereinafter referred to as the "Work reserve of labor protection and epidemic prevention materials, etc. This ensures that potential safety hazards are identified and rectified in a
Safety Law"), and the "Workplace Occupational Health Management Regulations", it has formulated and implemented a series of other internal timely manner, effectively building a solid line of defense for work safety.
safety and health management systems such as the "Occupational Health and Safety Management Manual" and the "Occupational Disease
Management System", to ensure the life safety of employees and the stable development of the enterprise. The Company has established a
Work Safety Committee with the General Manager as the Safety Director and department heads as members, to comprehensively coordinate and Emergency plans and drills
supervise the Company's safety management work. Meanwhile, safety management is incorporated into the KPI assessments of managers at all levels,
encouraging all employees to attach importance to work safety. During the reporting period, ZKTeco and Guangdong Zkteco passed the ISO The Company adheres to the requirements of relevant regulations such as the "Work Safety Law" and the "Fire Prevention Law of the People's Republic
that emergency rescue can be implemented promptly, effectively and orderly after an accident, safeguarding the lives of company employees,
production equipment and property safety. The Company implements the fire control policy of "prevention first, combining prevention and
elimination", actively organizes and conducts fire emergency drills, strengthens the fire safety awareness of all employees, and tests the ability of
each emergency response team to handle emergencies.
Occupational Health and Safety Management Occupational Health and Safety Management
System Certificate of ZKTeco System Certificate of Guangdong Zkteco
Safety responsibility system
The Company has established, improved and organized the implementation of the Work Safety Responsibility System, and signed a work safety
objective management responsibility letter in accordance with the principle of "whoever is in charge is responsible", to clarify the work safety
responsibilities of entities, management personnel at all levels, and employees in each position, strengthen the safety awareness of all employees, and
prevent the occurrence of accident hazards.
Objectives and planning Fire Drills of Guangdong Zkteco
Occupational Health and Safety Objectives of 2025
Target Content Achievement Safety promotion and training
Zero occurrences of potential fire, explosion and other safety accidents Completed
The Company attaches importance to building a safety culture, vigorously carries out safety promotion and education, publicizes work safety
Zero occurrences of electric shock accidents Completed regulations, operating procedures, etc., to create a strong safety atmosphere. The Company focuses on improving the safety literacy of all
Zero accidents causing occupational health injuries (mechanical injuries, employees, regularly conducts various safety training sessions, including safety training for new employees, pre-job safety training for
Completed employees changing positions or returning to work, pre-job training for special operation personnel, etc., to enhance employees' safety awareness and
object strikes, burns, etc.)
operational skills, and build a solid safety barrier for the Company's high-quality development.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Joining Forces and Advancing Together to Build a Better Society
Occupational
Safety protection measures
health protection
Management of Posting escape
Occupational hazard monitoring
first-aid kit route maps
The Company has developed the "Occupational Hazard Monitoring and Evaluation Management System". Every year, it hires qualified
occupational health testing institutions to conduct comprehensive occupational hazard factor testing in the workplace. During the reporting period,
the Company focused on monitoring positions exposed to occupational hazards, including inspectors, fully automatic laser cutting machine operators,
When each department of the Company needs a The Company regularly updates the escape
first-aid kit, it shall submit an application. After route maps of each manufacturer, which are TIG welders, grinding and polishing operators, and nylon polishing operators. A total of 140 inspection points were checked, with 138 qualified
approval, the relevant department provides it attached to the entrances or exits or gates of points, achieving a qualification rate of 98.57%.
according to the "List of First Aid Medicine" and each department. The supervisors of each
checks it weekly to see if there is a need to Production Department are responsible for
supplement the types and quantities of drugs. At the supervising employees to understand the Occupational health examinations
same time, it is recorded in the "First-aid Kit escape route maps.
Inspection Form". To safeguard employees' health rights, understand their health conditions, and prevent occupational diseases, the Company has established the
"Occupational Health Monitoring and Record Management System for Workers". For employees in positions with occupational hazard factors, it
implements pre-employment, on-the-job, post-employment, and emergency occupational health examinations, and establishes occupational health
monitoring records to dynamically track employees' health conditions.
Management of
emergency exit Hazardous chemical
lights and related management
lighting In 2025,
Electrical workers are responsible for The Company strictly manages hazardous the Global Manufacturing Center organized occupational health examinations for 72 employees. All employees'
inspecting and repairing emergency exit lights chemicals according to national regulations, indicators were within the normal range during this examination, and no occupational diseases occurred.
and related lighting equipment in various to ensure the safety of the entire process.
departments, actively carrying out circuit Dangerous goods containers must be sturdy,
acceptance, preparing for various disasters and tight, and labeled with special signs. The
accidents, and reducing the occurrence of instruction manual shall indicate the nature
safety accidents. of the dangerous goods and safety
precautions. In addition, the Company
assigns professional personnel to manage Health education and training
dangerous goods.
The Company has formulated the "Occupational Disease Prevention and Control Publicity, Education, and Training System". It regularly
conducts training on occupational health laws and regulations, basic knowledge of occupational hazard prevention and control, maintenance and
management of occupational hazard prevention facilities, and correct use and maintenance of personal protective equipment, comprehensively
enhancing employees' awareness of occupational health and safety and their protective capabilities. At the same time, the Company promotes
Smart security occupational health through bulletin boards, blackboard newspapers (wall newspapers), and occupational hazard warning signs, creating a favorable
occupational health culture.
Case
Occupational health management and personal protective equipment training
The Company installs high-
altitude object detection cameras, 案例
During the reporting period, the Integrated Services Department organized and conducted
flame detection cameras, and training on occupational health management and personal protective equipment (PPE). This
other security equipment in the training enabled employees to gain a basic understanding of occupational diseases, thoroughly
industrial park. informed them about the hazards associated with their job roles, continuously supervised them
to ensure proper self-protection, and arranged annual physical examinations on schedule.
Furthermore, employees unable to perform their duties were promptly reassigned to different
positions to mitigate the risk of occupational diseases.
Lecture on Personal Protection
Against Occupational Diseases
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Joining Forces and Advancing Together to Build a Better Society
Occupational disease prevention measures Protecting the legitimate rights and interests of
employees
Notification of
occupational
Protection of employee
Inspection of
protection
hazards rights and interests
facilities
The Company posts signs such as
The Company conducts a "Note Dust Prevention" and "Wear
quarterly inspection of Protective Masks" in places prone
to dust generation, and signs such
Human rights protection
occupational hazard protection
facilities and fills out the as "Noise Harmful" and "Wear Ear
The Company has always adhered to the principles of "respect, fairness, and impartiality", and explicitly stipulates in "ZKTeco's Recruitment Behavior
"Occupational Hazard Protectors" in places prone to
noise generation. Operation Standards" the prohibition of child labor and the use of any form of forced or compulsory labor, the prohibition of disseminating
Protection Facility Inspection
discriminatory ideas based on region, race, gender, etc., and the respect and protection of employee rights. During the reporting period, the Company
Form". The Company
did not experience any illegal or non-compliant incidents such as employment discrimination, child labor, or forced labor, and the labor contract signing
maintains warning signs, alarm
facilities, eye washers, and rate was 100%.
first-aid kits every quarter, and
fill out the "Maintenance
Record Form". Human Rights Protection Measures
Personal protective Anti-discrimination • During recruitment and employment, the Company does not take the hepatitis B
equipment and diversity
management test and pregnancy test as employment conditions, and does not take social class,
nationality, religion, etc. as the criteria for judging employees.
The Company has formulated the "Personal
Protective Equipment Management
Prohibition of
System" to ensure employees wear child labor • The Company strictly implements the "Recruitment Background Check Operation
appropriate labor protective equipment Standards". Identity verification is conducted during background checks and new
while working, in accordance with the employee onboarding to ensure that all new hires meet the legal age requirements and
standards for issuing labor protective prevent the accidental recruitment of child labor.
equipment. It also regularly inspects and
tests labor protective equipment, promptly • If child labor is found to have been accidentally recruited, the Company will immediately
replacing and scrapping any that does not terminate their employment and properly arrange for their return to their parents or
meet safety requirements. guardians.
Opposing • The Company clarifies its working hours and leave policies, ensuring that the average
forced labor working time per person does not exceed 8 hours, and reasonably arranges overtime
with employees' voluntary consent, safeguarding their legal right to rest.
Indicators Unit 2025
• The Company legally signs formal labor contracts with all employees, re-employment
Amount of investment in work safety RMB '0,000 5.59
agreements with rehired personnel, and internship agreements with interns,
Number of work safety accidents Case 0 safeguarding the rights and obligations of both parties and ensuring clear and compliant
Number of deaths due to work-related labor relations.
causes Person 0
Total number of employees with work-
related injuries Person 0
Lost workdays due to work-related injuries Day 0
Coverage rate for work-related injury
insurance personnel % 100
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Joining Forces and Advancing Together to Build a Better Society
Protection of female employees' rights and interests Talent recruitment
The Company strictly adheres to the requirements of laws and regulations such as the "Law of the People's Republic of China on the Guarantee of the
and retention
Rights and Interests of Women", actively implements exclusive paid leave for female employees such as prenatal check-up leave, prenatal rest
leave, maternity leave, and breastfeeding leave, and strengthens protection for female employees during pregnancy, maternity, and breastfeeding
The Company has formulated multiple management systems including the "ZKTeco's Recruitment and Configuration Management Regulations" and
periods. We respect and care for female employees, strive to combat discrimination against special groups such as pregnant women, and implement
the "ZKTeco's Recruitment Behavior Operation Standards" in strict accordance with relevant laws and regulations such as the "Labor Law of the
human rights protection effectively. In 2025, 44 employees enjoyed maternity leave, with a 100% return-to-work rate after maternity leave.
People's Republic of China" (hereinafter referred to as the "Labor Law") and the "Labor Contract Law of the People's Republic of China" (hereinafter
referred to as the "Labor Contract Law"). Adhering to the principles of "respect, fairness, and impartiality" and "efficient identification, scientific
evaluation, personnel position matching, and selective recruitment", the Company standardizes the recruitment and entry process of employees, and
International Women's Day Activities Case ensures that recruitment work is fair, just and orderly. We adhere to the talent concept of "those who are capable come first, and talents emerge in
large numbers", evaluate talents based on their abilities, qualities and values, and build ZKTeco's talent supply chain.
On the important occasion of International Women's Day, the Company organized a floral art salon event, which enriched the
leisure life of female employees, cultivated their sentiments, and, in a relaxed and pleasant atmosphere, strengthened the Company's
respect and recognition for its female employees, enhancing team cohesion and employee well-being.
Employee recruitment channels
The Company closely follows its talent development strategy and actual business needs to build a dual recruitment channel both internally and
externally. Externally, the Company widely recruits outstanding talents through social and campus recruitment, and actively responds to national
policies by providing equal employment opportunities for special groups such as the disabled and veterans, fulfilling its corporate social
responsibility. Internally, the Company opens an internal talent market to employees, providing them with more opportunities to expand their
career development fields. Through a coordinated internal and external recruitment strategy, the Company not only continuously introduces new
talents from outside, injecting new vitality into its development, but also creates a broader development space for internal employees, promoting
the common progress of talents and the enterprise.
Given the high level of understanding and loyalty among internal employees towards the Company, the Company adheres to the principle
of "internal first, external later" in recruitment, prioritizing internal recruitment to promote internal talent flow and optimize allocation,
and enhance employee motivation. When internal recruitment cannot meet the Company's employment needs, the Company considers
Floral Art Salon external recruitment to attract outstanding talents and revitalize the enterprise's talent pool. The Company conducts an annual effectiveness
evaluation of recruitment channels, retains efficient recruitment channels, and eliminates inefficient ones.
Trade Union Lecture on Marriage Law Case
The Company specially invited professional legal experts from the trade union to hold specialized lectures on topics such as the
protection of marital and family rights and interests in the context of the Civil Code. The lectures focused on issues of concern to During the reporting period,
women, such as property rights and family relationships, providing female employees with practical legal knowledge tools through
case analysis and interactive Q&A, to help them safeguard their legitimate rights and interests.
the Company hired 30 employees through campus recruitment and 118 employees through social
recruitment.
Social recruitment Campus recruitment Internal recruitment
This includes both online and offline
This includes online recruitment
campus recruitment presentations, job This includes internal job transfers and
platforms, on-site job fairs, and third- fairs, school-enterprise cooperation, and
party human resource services, etc. cooperation with third-party campus promotions.
recruitment companies, etc.
Lecture on Marriage Law
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Joining Forces and Advancing Together to Build a Better Society
Employee Composition National statutory welfare Independent company welfare
Total number of employees：3449 Persons Insurance and housing fund Bonus Accommodation Health
Pay social insurance and Special or temporary Provide dormitories Annual physical examination
housing provident fund in bonuses and year-end of employees
Financial personnel
Master's degree Administrative accordance with the law bonuses
Vacation Catering Entertainment Others
Production Statutory leaves such as Provide cafeteria Hold annual meetings, Nurseries, gyms, employee
personnel
Bachelor's annual leave, sick leave, gatherings, performance events, interest free housing loans, etc.
degree maternity leave, etc. and lucky draws every year
Divided by
educational
background specialty 1,275Persons
Other Technical
personnel
Performance assessment
The Company continuously optimizes its performance management system and incentive and restraint mechanisms, formulates the "Employee
Performance Management System", adheres to the principles of "fairness, openness, and scientificity", and conducts monthly, quarterly, and annual
Compensation and performance appraisals. The Company sets up various performance assessment models, including but not limited to behavior and attitude assessment
methods, key performance indicators (KPIs), personal business commitments (PBCs), etc., and flexibly selects appropriate performance assessment
benefits management methods based on the actual business needs of each department to ensure the effectiveness and fairness of performance management. The results
of performance appraisals will be used as important references for employee salary adjustments, promotions, and other work applications.
Monthly/Quarterly performance results affect monthly performance bonuses, while quarterly/annual performance results affect daily floating rewards.
Compensation system The Company attaches great importance to the two-way communication between performance appraisers and those being evaluated, improves
the performance communication and feedback mechanism, and provides regular performance interviews and feedback for employees. After each
The Company has established a scientific and reasonable compensation system, formulated and implemented the "Compensation Management System" to performance appraisal cycle, managers proactively communicate with employees about their performance to help them understand their work
standardize compensation management, enhance the incentive, balance, and fairness of compensation, and ensure scientific and reasonable compensation performance and provide improvement suggestions. If employees have objections to the performance appraisal results, they can submit
distribution. The Company determines salary standards based on the principles of remuneration for work, fairness and justice, and mutual benefit between written appeals to their superior leaders. If no consensus is reached, employees can submit the "Performance Appraisal Appeal Form" to the Human
labor and capital, according to the corresponding job level of the position, fully leveraging the incentive and guiding role of compensation. Resources Department within 3 working days after receiving the performance appraisal results. The Human Resources Department will conduct research
together with the employee's department within 5 working days after receiving the complaint.
Floated salary (position salary)
Fixed salary (basic salary)
Performance bonus, special bonus, year-end bonus, year-end
Basic salary and Floated salary (position
salary)position salary
performance bonus, annual evaluation bonus, and medium and Equity incentives and employee stock ownership plans
long-term bonus
The Company continuously provides long-term incentives to employees, fully mobilizing the enthusiasm and initiative of the core team, thereby
contributing to the stable development and performance growth of the enterprise. On January 23, 2025, the Company launched the "Restricted
Company Share Incentive Plan 2025 (Draft)", which was approved by the 16th meeting of the Third Board Meeting held on March 28, 2025, with March 28 as
Subsidies and allowances Compensation Welfare the grant date. The Company granted 2,121,170 restricted shares to 353 incentive objects who met the grant conditions, accounting for 1.081% of
Structure
Age allowance, attendance bonus, and others Insurance and housing fund and others the Company's total share capital on the grant date.
On January 23, 2025, the Company launched the "Employee Stock Ownership Plan 2025 (Draft)". The shares for this employee stock ownership
plan originated from ZKTeco's A shares held in the Company's dedicated securities account for share repurchases. The 1,113,800
company shares held in the Company's dedicated securities account for share repurchases were transferred by way of non-trading transfer on May
Welfare system 22, 2025, to the "ZKTECO CO., LTD. - 2025 Employee Stock Ownership Plan" securities account. The participants in the initial distribution of this
To protect the rights and interests of employees, enhance the cohesion of the Company, and attract and retain outstanding talents, the Company employee stock ownership plan totaled 358 individuals, with a subscribed share of 14,757,850 units, at a subscription price of RMB 1 per unit, and
provides employees with generous benefits. During the reporting period, the Company's social insurance coverage rate was 100%. an actual total subscription amount of RMB 14,757,850.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Joining Forces and Advancing Together to Build a Better Society
Strengthening democratic Employee care
management
Democratic management mechanism Protection of employees' physical and mental health
The Company firmly believes that a transparent and fair democratic management mechanism is the cornerstone for building harmonious labor The Company adheres to a people-oriented management philosophy and is committed to creating a warm and harmonious working atmosphere
relations, safeguarding employees' legitimate rights and interests, and stimulating organizational vitality. We have established and continuously for employees. Through organizing a variety of cultural and recreational activities, it helps employees relieve work pressure. The Company attaches
improved a democratic management system centered on the employee congress and trade union, ensuring employees have important rights to great importance to the construction of employee mental health and has launched an online course titled "Mental Health and Self-Psychological
Adjustment" to help employees deeply understand the significance of mental health, master scientific stress management methods, and cultivate a
information, participation, expression, and supervision in corporate governance and development.
positive attitude towards life.
Diversified communication channels
The Company has established equal and democratic diversified communication channels, ensuring that
employees can obtain timely and clear information in different scenarios through face-to-face meetings,
emails, internal social networks (such as Colleague Bar and ZKTeco World), etc. At the same time, the
Company has established a complete employee feedback channel, and it encourages employees to raise
questions and suggestions at any time through setting up employee suggestion boxes, employee proposal
centers, etc. To further enhance information transparency, the Company has set up a company affair
disclosure column, issuing announcements, internal communications, etc., to help employees better
understand the development and objectives of the enterprise.
ZKTeco Family Day Third Anniversary of Listing Event
Employee suggestion box poster
Club Activities
Company affair disclosure column WeCom Workbench - Employee Proposal Center
Employee assistance
Labor dispute resolution The Company has strictly implemented the "Management Regulations for Corporate Care of Sick Employees". The Company provides care and
assistance to sick employees and their families, visits sick employees with gifts and money, and reimburses the travel expenses for cross city visits. In
order to help employees with major illnesses solve practical difficulties and reduce the burden of medical expenses on employees, the Business
The Company's trade union organization assumes the function of labor dispute mediation and collaborates with local community service
Group Management Department provides assistance and consolation money based on the actual situation of employees. At the end of 2022, the
organizations to handle labor disputes. The management of labor disputes within the Company is the responsibility of the Human Resources Department
Company launched an interest-free housing loan for employees to meet their housing needs and assist those with housing difficulties. The terms were
of each business group. They handle abnormal labor relations through employee interviews and event verification, and issue disciplinary notices in
accordance with company regulations. If employees have objections, they can file complaints with the Human Resources Center. If the issue cannot updated and revised in 2025, expanding the scope of borrowing to include car purchases and loans for serious illnesses. During the reporting period, a
be resolved, the trade union leader and community leader will intervene for mediation. Currently, there are few labor disputes in the Company, and total of 65 employees received interest-free loans, with a total loan amount of RMB 17.36 million.
employee satisfaction is high.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Joining Forces and Advancing Together to Build a Better Society
Employee training and development Construction of teaching team
The Company implements the "mentor system" and "internal lecturer system" management methods, formulates the "ZKTeco's Mentor System
The Company adheres to the concept of "developing the enterprise with technological innovation and talents", and is committed to building a multi- Management Measures" and "Lecturer Management Regulations", clarifying the selection, benefits, and teaching management of mentors and
level and multi-dimensional career development channel to provide a broad stage for employees to display their talents. We uphold the values of internal lecturers, and is committed to building a high-quality team of mentors and internal lecturers to promote the extraction and inheritance of
"responsibility, integrity, pragmatism and excellence", and in talent cultivation, we focus on the dual improvement of moral character and professional knowledge and experience within the Company. As of the end of the reporting period, the Company had a total of 195 lecturers, including 35
ability. We also establish a performance-oriented incentive mechanism to achieve the harmonious development of personal growth and enterprise
special invited lecturers, 11 senior lecturers, 36 intermediate lecturers, and 113 junior lecturers. In 2025, the Company added 20 certified lecturers,
development.
including 1 senior lecturer, 5 intermediate lecturers, and 14 junior lecturers.
Employee training
management
Construction of training platform
The Company has formulated the "Training Management System" to standardize the training management. In terms of talent cultivation, we
create a rich and diverse online and offline learning environment and training opportunities for the growth and progress of employees. We
strive to create a corporate culture atmosphere of mutual trust, respect and help, providing sustainable development space and opportunities The Company has established an online learning platform - Yunxuetang, providing employees with a rich and diverse online learning
for each employee, and encouraging employees to work together and grow together in the Company. environment. Through online management of course resources, real-time teaching, online examinations and result analysis, it helps to build an
enterprise knowledge base and promote the standardization and professionalization of the Company's training management. Yunxuetang includes five
Training System for Employees of ZKTeco application sections: Training Center, Online Classroom, Testing Center, Research Center, and Teacher Management. The course content covers
multiple areas such as human resource management, sales management, financial management, middle and senior management, and workplace
Training System of ZKTECO CO., LTD. ZKTeco Global skills. In 2025, the platform added 270 courses on company operation norms, project management, product and technology knowledge, etc.
Curriculum system Specialized project Key Learning
Initiatives Diversified training
Middle-level cadre The Company offers systematic training for employees in areas such as technical improvement and management innovation, including induction
Training for middle and senior-level cadres Hi-Po Manager Program
training class
Cadre training, professional training, product training, full-time training, external training, job rotation, cross-professional practice, academic advancement,
training
Basic-level cadre and experience sharing.
Middle-level cadre training training class Solution Sell Training
Professional competence enhancement training for Solution sales training New employee training
positions camp Overseas Sales Camp
Project management
Vocational Marketing Technical Managemen Professional Operational training camp Case
training
category (S)
training
category (T)
training
t category
(M) training
category (P)
training
category
(O) training
CTO Program "Red Heart Class" training
In-house trainer
training camp 案例
The Company organized and conducted "Red Heart Class"
General skills training for employees with 1-3 years Quality management Marco Polo Program
of service new employee onboarding training to help participants
training camp
gradually become familiar with and adapt to the
OJT training for probationary position Local Staff On-boarding organizational environment, quickly adapt to their job
The "Red Heart
New
Class" of new roles, identify with and integrate into the company's
employee
recruits in campus
training Foreign Language Center corporate culture, clarify their work objectives and job
Company-level onboarding training recruitment
responsibilities, and cultivate talent needed for the
Company's development.
Online learning platforms, internal knowledge sharing platforms, and online live streaming/conferencing platforms
"Red Heart Class" Training
A training course system based on job qualifications
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Joining Forces and Advancing Together to Build a Better Society
Professional skills training
ZKTeco Smart Alliances Business Elite Boot Camp Case
Case 案例
AI hands-on training The Company held a 6-day ZKTeco Smart Alliances
案例 Business Elite Boot Camp, meticulously planning and
The Company organized and conducted AI hands-
launching 12 categories and a total of 31 sub-courses,
on training, with a total of 35 participants. The
attracting 19 Smart Alliances business elites to
course content covers fundamental theories of AI,
participate. The boot camp was structured around a three-
industry application cases, hands-on project
dimensional empowerment matrix of "Strategy Cognition -
operations, etc., helping participants master
Tactical System - Readiness Resources", leveraging high-
practical AI skills and facilitate the Company's
intensity, practical courses and drills to deeply empower
innovative development.
partners.
ZKTeco Smart Alliances Business Elite Boot Camp
AI Hands-on Training
Case Training evaluation and assessment
"Quality Green Belt" training
案例 The Company uses the Kirkpatrick model to comprehensively evaluate training results and provides feedback to the supervisory
The Company organized "Quality Green Belt"
department as a basis for developing and revising training plans. Specifically, response evaluation provides feedback on the
training, with a total of 164 participants. The course
training results of trainees through survey questionnaires or interviews. Learning evaluation involves the knowledge and
content covered core concepts of quality
skills mastery of trainees through exams, speeches, and other methods. Behavioral and result level evaluation involves the
management, common tools, and more, helping
achievement of training objectives through tracking surveys and face-to-face interviews between training leaders and trainees.
trainees build a systematic knowledge framework,
improve the quality management level of all
employees, and enhance their overall quality
literacy. Indicators Unit 2025
Employee training investment RMB '0,000 18.86
"Quality Green Belt" Training
Employee training sessions Session 1,248
Total number of trainees Person-time 31,457
Professional skills training
Case Employee
ZKTeco's "Iron Triangle" training
案例 development channels
To build a high-caliber project engineering backbone
team, the Company organized a five-day "Iron
Triangle" project engineering talent training, with a
total of 17 participants. This training aims to Career development path
comprehensively enhance project engineering
delivery capabilities and further strengthen The Company formulates the career development path and promotion channels for employees based on actual conditions,
collaborative capabilities and team cohesion across providing diversified career development directions and opportunities to maximize the vitality and potential of employees.
sales, product, R&D, and other departments. The Company divides employees into five categories, namely management, marketing, technical, professional, and operational
categories. Except for the management category, employees in other categories are evenly divided into six levels, and are
ZKTeco's "Iron Triangle" Training
promoted step by step based on work experience and performance. The career development path is clear.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Joining Forces and Advancing Together to Build a Better Society
ZKTeco's Position Pattern
Management Executive Operational Management decision-
category (M) management (M3) management (M4) makers (M5)
Rank New entrants Assistants Junior Intermediate High Senior Experts
Marketing
S0 S1 S2 S3 S4 S5 S6
category (S)
Technical
T0 T1 T2 T3 T4 T5 T6
category (T)
Colombia - Partnering with the Environmental Colombia - Assisting with product packaging at the Bogotáá
Professional Protection Foundation to plant trees Food Bank
P0 P1 P2 P3 P4 P5 P6
category (P)
Operational
O0 O1 O2 O3 O4 O5 O6
category (O)
Internal job transfer mechanism
The Company has established a complete internal job transfer mechanism, mainly comprising two types: internal transfer within the business group
and cross-business group transfer. For internal job transfer, the department with talent demand should first initiate the internal recruitment request.
The Human Resources Center will then recommend resumes and select the transferred employees through interviews. After the transferred
employees pass the assessment in the probation period, the internal job transfer will be completed, achieving the optimal allocation and reasonable
flow of talent resources. Indonesia - Partnering with the Indonesian Red Cross to Colombia - Partnering with local associations to organize active
organize active employee participation in blood donation employee participation in blood donation
During the reporting period, Public welfare
donations
the Company experienced a total of 2,251 transfer incidents, including 2,082 transfers
within the business group and 169 transfers across business groups. The Company actively carries out various charitable donation activities, focusing on areas such as education support, livelihood assistance, and social
care. By donating essential supplies and funds, we contribute to educational equity and improve people's well-being. We are committed to delivering
warmth and hope through sincere commitment and sustainable charitable actions, contributing solid strength to building a more harmonious and
beautiful society.
Public welfare and charity Educational Donations
Volunteer
activities
The Company adheres to the spirit of voluntary service of "dedication, friendship, mutual assistance, and progress", deeply embedding
social responsibility into its corporate culture. It actively encourages employees from all over the country to participate in volunteer
activities and contribute love and warmth to society. Over the years, the Company has proactively fulfilled its social
responsibilities and actively carried out various volunteer activities, such as environmental protection and blood donation drives and
other vulnerable groups, spreading the Company's care to every corner of the world.
Thailand - Donating funds to a Thailand - Donating funds to an autism school.
Children's Fund.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Joining Forces and Advancing Together to Build a Better Society
Daily Necessities Donations Social Donations
South Africa - Donating essential South Africa - Donating supplies
Colombia - Donating Supplies to Rescue Stray
supplies to a charity organization. to an autism school. South Africa - Donating supplies to
Animals in Collaboration with the Charity
animal rescue centers
Organization "Tapitas x Patitas"
South Africa - Providing essential supplies to South Africa - Providing essential
children in shelters. supplies to the homeless.
Mexico - Recycling plastic waste, with all proceeds fully donated to children's medical institutions
Charitable
donations
The Company is enthusiastic about public welfare and actively participates in charitable activities, conducting charitable donations to support
community development and rural revitalization. In 2025, Guangdong Zkteco has donated RMB 10,000 to the Jinhe Community Residents'
Committee in Zhangmutou Town, Dongguan City during the 20th Spring Festival Gathering for the God of Longevity in Jinhe Community; in 2025,
it donated RMB 5,000 to the Jinhe Zhupai Shareholding Economic Cooperative in Zhangmutou Town, Dongguan City during the Spring
Festival Gathering for the God of Longevity in Zhupai Village, Jinhe Community, RMB 5,000 to the Jinhe Shareholding Economic Joint
Colombia - Distributing aid vouchers to Philippines - Donating supplies to Cooperative in Zhangmutou Town, Dongguan City during the "6.30" Rural Revitalization Support and Dongguan Charity Day event, and RMB
single mothers and caregivers children's homes 10,000 to the Zhangmutou Charity Foundation in Dongguan City. ZKTeco has donated RMB 3,000 to the Tangxia Chamber of Commerce in
Dongguan City during the "6.30" Rural Revitalization Support and Dongguan Charity Day event.
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Appendix
Appendix Report Chapters GRI Standards
China Enterprise Sustainable
Development Report
Shenzhen Stock Exchange Guideline No.
- Sustainable Development Report (Trial)
Index
Guidelines (CASS-ESG 6.0)
Responding E1.1.1/E1.1.2/E1.1.3/E1.1.4/ Article 11/Article 20/Article 21/
to climate 201-2 E1 .1.5/E1.1.6/E1.1.16/E1.1.19 Article 22/Article 23/Article 27/
change Article 28
China Enterprise Sustainable Shenzhen Stock Exchange Guideline No. Low-Carbon
Report Chapters GRI Standards Development Report 17 on Self Regulation of Listed Companies Transition,
Guidelines (CASS-ESG 6.0) - Sustainable Development Report (Trial) Leading Green
Developmenat E2.1.1/E2.1.2/E2.1.3/E2.1.6/E2.2.1/
About the Report 2-2/2-3 P1.1/P1.2 Article 4/Article 6 Environmental -3/306-5 E2.4.3/E2.4. 4 31/Article 33
management
Address by General / P2.1 /
Manager
Resource 302-4 E3.1.5/E3.2.3/E3.2.4/E3.3.1 / Article 34/Article 35 /Article 36/
Company management E3.3.2/E3.3.4 Article 37
Profile 2-1 P3.1 /
Business
Introduction / P3.3 / S2.1.1/S2.1.2/S2.1.3/S2.1.4/S 2.1.5/
Innovation / Article 11/Article 42/
-driven S2.1.6/S2.1.7/S2.1.8/S2. 1.10/S2.1.11/
Article 43
S2.1.12/S2.1.13
About Corporate
ZKTeco Culture P3.2 /
Empowering Supply 2-6/308-1/308-2/414-4-1/41
Collaboration Chain Manage S3.1.1/S3.1.2/S3.1.3/S3.1.4/S3.2.1 Article 45/Article 45 /
Honors and / 4-21/414-2
/ / to Co-create a ment Article 46
Thriving
Ecosystem
Performance
Highlights 201-1 A2 / Product S3.3.1/S3.3.2/S3.3.4/S3.3.5 /
for 2025 and service 416-1 S3.3.6
safety and Article 11/Article 47
quality
SDGs and / / /
Vision
Data security
and privacy 418-1 S3.4.1/S3.4.2/S3.4.3/S3.4.4
Sustainable Article 11/Article 48
Development protection
Management Sustainable
development 2-14 G1.1.8/G1.2.4 Article 12
governance
system Occupational 403-1/403-2/403-3/
health and Article 49/Article 50
safety -7/403-8/403-9/403-10 S4.2.5/S4.2.6
Stakeholder 2-16/2-29 G1.3.2 Article 9/Article 53
Communication Joining Forc
es and Protecting the
legitimate S4.1.1/S4.1.2/S4.1.3/S4.1.4/
Advancing 2- 7/201-3/401-2/40
Together to
rights and S4.1.5/S4.1.6/S4.1.8/S4.1.10/ Article 49/Article 50
Importance interests of 5-1/406-1/408-1/40 9-1
Build a employees S4.1.11/S4.1.12
Issue 3-1/3-2/3-3 G1.1.9 Article 5
Management Better
Society
Employee S4.3.1/S4.3.2/S4.3.3/S4.3.4 /
training and 404-2 Article 49/Article 50
Standardize S4.3.5
development
corporate 2-9/2-10/2-11/2-12 /2-13/2- / Article 51
governance. 18 /2-19/2-20 /2-27/207-2
Standardizing
Governance to Public welfare /
Build a Solid and charity S1.1.3/S1.2.1 Article 38/Article 39/Article 40
Protecting
Foundation for Rights and
Development 2-16 / Article 53
Interests of
Investors
Index / A3 Article 57
Appendix
Commercial G2.1.1/G2.1.2/G2.1.3/G 2.1.4/ Article 54/Article 55/Article 56
conduct 2-25/2-27/205-2/206-1/417-1 G2.1.7/G2.2.1/G2. 2.2/G2.2.3 Feedback / A6 /
ZKTECO CO., LTD. 2025 SUSTAINABILITY REPORT Appendix
Feedback For ZKTeco, your identity is:
□ Shareholders and investors □ Employees □ Government and regulatory agencies □ Customers
Partners □ Employees Industry associations and organizations □ Community, public, and media
□ Others__________(please specify)
Thank you for taking the time to read the "ZKTECO CO., LTD. 2025 SUSTAINABILTY REPORT". We attach
great importance to and look forward to hearing your valuable opinions and suggestions on the Company's 1. Your overall evaluation of the 2025 SUSTAINABILITY REPORT:
sustainable development work and sustainable development management. Your opinions and suggestions are an
important basis for us to continue improving sustainable development work and enhancing sustainable □ Very good □ Good □ General □ Poor □ Very poor
development management. We sincerely invite you to assist us in completing the relevant issues in the reader's
feedback and provide feedback to us through the following methods. Thank you again for your strong support of 2. Do you think the information disclosed in this report is accurate, clear, and complete?
our sustainable development work!
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Phone: 0769-82618868
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Fax: 0769-82618848
economy, society, and environment?
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Email: ir@zkteco.com
this report?
Address: No. 32, Pingshan Industrial Road, Tangxia Town, Dongguan, Guangdong, China □ Very good □ Good □ General □ Poor □ Very poor
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management?
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