CONTENTS
Strengthening
the Foundation of Prioritizing People
Upholding Excellence to to Co-create
Instructions the Path to High- Enhance Product Quality a Shared and
Management Management
Corruption 92 Human Capital Development
Transformation
Privacy Protection
Fostering Partnerships Embracing Eco-Efficiency
Sustainable Supply
Chain 04 to Accelerate a Clean and
Low-Carbon Production
System
Mechanisms
Opportunity Management
Report Preparation Instructions Company name
Yancheng Dongchuang Precision Manufacturing Co., Ltd.
Abbreviation
Yancheng Dongchuang
The 2025 Environmental, Social and Governance Report of Suzhou Dongshan Precision Manufacturing Co., Ltd. (the "Report") Suzhou Yongchuang Communication Technology Co., Ltd. Yongchuang Technology
aims to disclose the Company's philosophy, management practices, and key performance in sustainable development to
Groupe Mécanique Découpage GMD Group
stakeholders, responding to stakeholders' expectations and concerns adequately.
Reporting Period
Scope and Boundaries of the Report The period is from January 1, 2025, to December 31, 2025, and extends appropriately to previous and subsequent years.
The Report mainly discloses information and key performance of Suzhou Dongshan Precision Manufacturing Co., Ltd. and its
branches and subsidiaries in fulfilling environmental, social, and governance responsibilities in 2025. Unless otherwise specified Basis for Preparation
for certain information, the policies, statements, and data in this report cover the actual business scope of Suzhou Dongshan
GRI Sustainability Reporting Standards (GRI Standards) issued by the Global Sustainability Standards Board (GSSB); Guidelines
Precision Manufacturing Co., Ltd. and its branches and subsidiaries, which are consistent with those in the annual report.
No. 17 on Self-Regulation of Listed Companies — Sustainability Report (Trial) issued by the Shenzhen Stock Exchange (SZSE);
Guidelines No. 3 on Self-Regulation of Listed Companies — Preparation of Sustainability Report (Revised 2026) issued by the
Shenzhen Stock Exchange (SZSE); ISO 26000: Guidance on Social Responsibility (2010) issued by the International Organization
Reference in the Report
for Standardization (ISO); and the United Nations Sustainable Development Goals (SDGs).
For ease of presentation and reading, DSBJ and its branches and subsidiaries are referred to by the abbreviations listed in the
table below throughout this Report. Principles for Preparation
Company name Abbreviation This Report is subject to the following four principles, namely, "Materiality ", "Impartiality", "Quantification", and "Consistency".
Suzhou Dongshan Precision Manufacturing Co., Ltd. DSBJ, the Company, the Group or we/us Materiality. The Company conducts a materiality assessment to identify and evaluate ESG topics that are material to our
business, internal and external stakeholders to focus the Report on relevant disclosure. For a more detailed materiality
Multi-Fineline Electronix, Inc. MFLEX assessment process and results, please refer to the "Sustainable Development Management" section of the Report.
Multek Group (Hong Kong) Limited Multek Impartiality. The content of the Report reflects objective facts, providing unbiased disclosure of both positive and negative
information related to the Company, and impartially stating the Company's efforts across various aspects of ESG. During the
Source Photonics Holdings (Cayman) Limited Source Photonics
reporting period, we have identified no significant negative events with a material impact that should have been disclosed.
MFLEX Suzhou Co.,Ltd. MFLEX Suzhou Quantification. In this Report, the Company discloses ESG quantitative performance indicators and establishes quantitative
performance targets where applicable. The measurement standards, methods, assumptions, and/or calculation tools for
MFLEX Yancheng Co.,Ltd. MFLEX Yancheng
key performance indicators in this Report, as well as the sources of conversion factors used, have been explained in the
Multek Industries Ltd. Multek Industries respective sections, where applicable.
Multek Electronics Ltd. Multek Electronics Consistency. This Report maintains consistency in the statistical and disclosure methods of the same indicators across
different reporting periods. Any changes in statistical and disclosure methods will be fully explained in the report notes,
Multek Technology (Zhuhai) Co., Ltd. Multek Technology facilitating meaningful analysis and evaluation by related parties.
Suzhou Dongyue New Energy Technology Co., Ltd. Suzhou Dongyue
Multek China Ltd. Multek China Source of Information
Yancheng Dongshan Precision Manufacturing Co., Ltd. Yancheng Dongshan All information and data used in this Report is derived from the Company's official documents, statistical reports, financial
reports, and materials summarized and reviewed by the Company's responsible management department. In case of any
Yancheng Mutto Optronics Technology Co., Ltd. Mutto Optronics discrepancies between the relevant financial data and the Company's annual report, the annual report shall prevail. Unless
otherwise specified, the currency amounts mentioned in this Report are denominated in Renminbi (RMB).
Suzhou Rf Top Electronic Communication Co., Ltd. Rf Top Electronic
DSBJ Pte. Ltd. (DSBJ Singapore) DSG Reliability Assurance
Suzhou JDI Electronics Inc JDI Electronics The Company undertakes that the content of this Report contains no false records, misleading statements, or major omissions,
and the Company is responsible for the truthfulness and accuracy of the content.
Suzhou Chengjia Precision Manufacturing Co., Ltd. Suzhou Chengjia
Dongguan Dongshan Precision Manufacturing Co., Ltd. Dongguan Dongshan Access to the Report
Welcome to visit the Company's official website at www.dsbj.com to access the electronic version of the Report.
Message from the CEO
ESG, far more than a conceptual framework, is a fundamental In 2025, with the integration of green principles into integrity in all our operations and delivering premium core technologies and steady business operations to
commitment woven into our strategic decisions and daily every facet of our operations, we have realized low- service to honor every expectation, accompanying our empower the broader industry's green transformation.
practice. We firmly believe that sustainable development is carbon development, which is not only a corporate customers on their journey of growth through reliable
As we move into 2026, ESG at DSBJ will enter into a new
not a solitary journey, but a shared endeavor undertaken responsibility but also a mindful protection of society products and services. We remain deeply connected to
chapter, more focused on depth and impact. Leveraging
alongside our stakeholders to build a more promising future. and the environment. We accelerated the transition the communities around us, channeling our care into
our position as a company listed in both the A-share
Looking back at 2025, a year defined by both challenges and toward digital-intelligent manufacturing, leveraging meaningful philanthropic initiatives that carry warmth and
and H-share markets, we will continue to benchmark
growth, thanks to numerous touching moments of resolve, smart production scheduling, lean process optimization goodwill.
our governance against international best governance
DSBJ has remained steadfast in its mission, moving forward and process innovation to minimize energy consumption
In 2025, with the belief that innovation should serve a dual practices. We are committed to strictly complying
hand-in-hand with our partners to forge a sustainable path. and emissions while maximizing resource efficiency.
purpose, we fulfilled our era's mission of sustainability with domestic and overseas regulatory requirements,
Furthermore, we extended our environmental mandate
In 2025, amid global economic fluctuations and manufacturing while driving efficiency. We have deeply positioned continuously refining our international governance
across the entire value chain. By embedding sustainability
uncertainties, ESG has evolved from an "optional elective" to ourselves within the AI hardware ecosystem. Through the structure, optimizing global decision-making systems,
requirements into the entire process, including
a "mandatory imperative." This shift reinforces our conviction strategic acquisition of Source Photonics and the technical and enhancing the Board's professional oversight and
supplier onboarding, production synergy, and product
that corporate responsibility is the bedrock of long-term expertise of Multek in high-end PCBs, we have completed transparency in information disclosure to safeguard
delivery, etc., we have established a green supply chain
growth. Guided by our spirit of "Breakthrough, Diversity, strategic positioning in key industries, successfully our global expansion and high-quality development
cooperation mechanism with upstream and downstream
Simplicity and Journey", we have continued to scale our building a full-chain synergy of "PCB + Optical Chips + through standardized and transparent governance
partners, forming a responsible industrial ecosystem that
industrial footprint and kept our original intention toward Optical Modules." With continuously increased investment practices. There are no shortcuts on the path to
champions low-carbon development from end to end.
our employees, partners, and society. From core consumer in the next-generation capacity, we have fortified the sustainability. Only a steadfast heart and a firm focus on
electronics components and key NEV (New Energy Vehicle) In 2025, we never lost sight of the truth that the growth core hardware carriers for AI servers, providing solid technology-driven progress can empower us to develop
parts to emerging frontiers like AI PCBs and high-speed of an enterprise is inseparable from the strength of its support for the era of computing power. Furthermore, the industry, give back to society, and join hands with
optical chips, we are successfully cultivating new growth people. We cherish every member of the DSBJ family, we are harmonizing deep AI integration with corporate all stakeholders to pursue a greener, more inclusive,
curves. Our growth, in every step, is contributed to by the continuously refining our compensation systems and development, contributing to carbon reduction through and sustainable future.
hard work of our employees, the trust of our partners, and building platforms for professional growth, listening high-efficiency hardware solutions. On the basis of a
the support of all sectors of society. Today, our products to every voice, and ensuring that those who strive feel globalized IT compliance and governance system, we have
and services have achieved global presence. To our a genuine sense of belonging and achievement, and coordinated domestic and overseas technical resources SHAN Jianbin
customers, we deliver not just premium products, but a that every contribution is seen and valued. We hold the and data security, to form unified, efficient, and secure Director and CEO
promise of sustainable value. trust of every customer in the highest regard, upholding global IT operational capabilities, thereby ensuring reliable Suzhou Dongshan Precision Manufacturing Co., Ltd.
About DSBJ
Headquartered in Suzhou, Jiangsu Province, Suzhou Dongshan Precision Manufacturing Co., Ltd (stock code: 002384.SZ), with
the mission of "building a better connected world for tomorrow", is committed to growing into a leading provider of intelligent
interconnection products and solutions. Anchored by robust technical capabilities, the Company remains committed to
cultivating its main business while driving strategic expansion and upgrades. We have established a globally integrated
and highly synergistic product portfolio spanning optical modules (including optical chips), electronic circuits, precision
components, touch panels, and LCMs. By integrating our comprehensive strengths in R&D, manufacturing, and supply chain
excellence, we can deliver global clients with comprehensive, one-stop strategic solutions. As of the end of 2025, the Company
is the world's largest PCB supplier for edge AI devices, the world's second largest FPC supplier, and one of the world's top
three PCB suppliers.
The Company actively promotes the globalization strategy and continues to deepen the global business layout. In 2025, through
the strategic consolidation of Source Photonics, the Company formally established its presence in the optical communication The Company is dedicated to providing comprehensive electronic circuit products and
sector. By building a vertically integrated full-industry chain from optical chips to modules, we have significantly enhanced services for industry-leading customers. We offer our customers one-stop solutions involving
our AI computing infrastructure portfolio, driving the high-quality advancement of the intelligent interconnection industry. design, R&D, and manufacturing of electronic circuit products according to customized
Concurrently, the Company completed the 100% equity acquisition of the GMD Group in France, optimizing our industrial Electronic requirements for different downstream end products. Our products are widely used in
footprint in Europe and fortifying our competitive edge in intelligent automotive components. With approximately 15 Circuits smartphones, computers, AR/VR, wearable devices, data centers, communication equipment,
production bases strategically established across Asia, North America, Europe, and Africa, we have significantly enhanced new energy vehicles, energy storage, industrial control equipment, AI hardware, etc.
localized operational efficiency and customer responsiveness, building a more resilient and synergistic global operating system.
In 2025, the Company was ranked 358th among China's top 500 private enterprises and 254th among China's top 500 private
manufacturing enterprises. Looking ahead, by embracing a more open innovation mindset, we will accelerate the transition to
next-generation intelligent manufacturing, building a more resilient global product-and-service ecosystem that sharpens our The Company is a well-known manufacturer of touch displays and LCMs in the industry.
market responsiveness and spearheads transformative growth across the industry. Among our products, the touch panel products are mainly used in the medium and large-size
display field, including products such as laptops, tablet PCs, and smart homes; and the LCD
Photoelectric
Growing into a leading provider of intelligent interconnection solutions Display
module downstream applications are mainly used in consumer electronics (such as smart
phones and tablet PCs, etc.), automotive, and other fields.
The Company mainly provides precision metal structural parts and components for customers
in the new energy vehicles, energy storage, and communication equipment fields. The main
products include functional structural parts for new energy vehicles, such as heat sinks,
Precision battery pack shells, body-in-white, battery structural components, die-castings, and interior
Annual Revenue: Business Presence: Manufacturing components, and structural parts and components for mobile communication base stations,
such as antennas, filters.
RMB 40.125 billion 55 countries and regions worldwide
The Company is dedicated to the design, research, development, production, and sales of
optical communication modules and components, with a vertically integrated full-industry
chain from optical chips to modules. Our products are widely used in AI computing power,
Optical data centers, telecommunications networks, and 5G communications. With R&D and
Communication production bases in California (USA), Taiwan (China), Chengdu (Sichuan), and Changzhou
(Jiangsu), we have the ability of globalization delivery.
Sustainable Development Management
Sustainable Development Governance Framework
Sustainable Development Strategy
In order to better integrate sustainable development demands with the Company's development strategies and operations
and management activities, DSBJ continuously improves its environmental, social, and corporate governance systems. The Guided by our mission to "build a better-connected world for tomorrow", DSBJ seamlessly integrates sustainable
Company has clarified management concepts and principles, authority scope, work tasks, decision-making processes, and development into our core corporate strategy. By aligning with the United Nations Sustainable Development Goals
rules of procedure, incorporating sustainable development management into the Company's governance framework, thereby (SDGs) and global green transformation trends, we have established a systematic roadmap for our sustainability
establishing a sustainable development management system covering the Board of Directors, management, functional journey. We remain committed to refining our ESG impact, risk, and opportunity management mechanisms.
departments, and business segments. The Company has continuously enhanced its risk control and value creation capabilities Through proactive identification and substantive response to key sustainability issues, DSBJ is embarking on a
in the sustainable development area. new journey towards high-quality development.
The Company's Board of Directors is the highest decision-making body on economic, environmental and social issues,
responsible for reviewing and deciding major events related to the Company's sustainable development, and their
effectiveness. The Strategy and ESG Committee under the Board of Directors, as a research and guidance institution for
sustainable development work, provides professional support for the Board of Directors' decision-making. The professional
capabilities of the Board of Directors in supervising ESG-related impacts, risks, and opportunities are detailed in the "Corporate
Governance/Diversified Structure of the Board of Directors" chapter of this Report. The Company has established a Sustainable
Development Management Committee within its management framework. As the primary executive body for ESG management,
the Committee is responsible for identifying and managing ESG risks and opportunities, while strategizing and orchestrating
the implementation of ESG initiatives and issues. Supporting this, a cross-functional ESG Working Group—comprising
corresponding personnel from various departments, branches and subsidiaries—oversees day-to-day operations. Furthermore,
ESG performance indicators are integrated into departmental KPIs, with an incentive and accountability mechanism in place to
align annual assessment results with performance outcomes. Str
en c
e Founda engt
ll t i o he
During the reporting period, the Company deliberated major ESG issues such as materiality assessment and achievement ce no n
Ex fG i
ng
of goals on ESG issues while organizing multiple ESG-specific training sessions to enhance employees' understanding of the
ng ver
o
i
th n a n
Company's ESG management strategies and related work, thereby better promoting the implementation of ESG efforts.
ld
ho
e
Up
DSBJ's Sustainable Development Governance Framework
ce
ips
Board of Identify ESG-related risks and opportunities, as well as the adaptability of the Company's
tnersh
Priorit
Directors strategy and business model to them;
Decision-
Par
izin
Deliberate and approve the Company's ESG-related visions, strategies, goal planning,
Making
ing
gP
Strategy guidelines and policies, and review and decide major events involving the Company's
er
eo
level
st
sustainable strategic development;
pl
Fo
and ESG
e
Em
Committee Oversee important ESG issues and be responsible for their effectiveness. brac ncy
ing Eco-Efficie
Determine the materiality of ESG issues and incorporate them into business considerations;
Sustainable Coordinate the formulation of the Company's ESG strategic planning, indicators and goals,
Manage-
Development policies and regulations, and annual work plans, and the updates of the Management's
ment
Management sustainable development plan;
level
Committee Monitor the progress of ESG topics and make recommendations;
Coordinate ESG-related information disclosure.
ESG Conduct centralized management of various ESG topics and promote related strategy
Executive
Working development, daily management and implementation;
level
Group Monitor the implementation of ESG topics and report information on a regular basis.
Communication with Stakeholders Materiality Analysis
DSBJ prioritizes the expectations and requirements of all stakeholders. Adhering to the AA1000 Stakeholder Engagement Materiality analysis helps enterprises identify and assess potential risks, providing support for decision-making and
Standard and international best practices, we have systematically identified key stakeholder groups and established a management. In 2025, DSBJ updated its analysis methods according to the disclosure standards, including but not limited
robust, multi-channel communication mechanism. By embedding stakeholder concerns into our sustainability targets and to the GRI Sustainable Development Reporting Standards (GRI Standards), the International Financial Reporting Standard on
management enhancements, we are committed to fostering long-term partnerships built on mutual trust and shared value Sustainability Disclosure 1 - General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1), and
creation. the Guidelines No.17 on Self-Regulation of Listed Companies – Sustainability Report (Trial) from the Shenzhen Stock Exchange.
This update involved assessment from two dimensions: "Impact Materiality" (the materiality of impacts on economic,
environmental, and social sustainability) and "Financial Materiality" (the materiality of impacts on the Company's finances).
Key stakeholders Expectations and demands Communication method Through such assessment, we comprehensively reviewed various concerns and their financial impacts on the Company,
selected ESG topics with high impacts that would be highlighted in the report, and continuously improved ESG management to
Compliance and risk management Special meetings or reports better meet stakeholders' expectations and demands.
Business ethics and anti-corruption Policy consultation feedback
Government and Serving national major strategies Official visit We compile a list of ESG topics by systematically identifying general and industry-specific issues, which is
regulatory agencies ESG Issue informed by authoritative domestic and international sustainability reporting guidelines and standards,
Support local development Compliance regulatory inspections
Identification mainstream domestic and international ESG rating systems, sustainable development topics focused by
industry peers and issues of common concern for internal and external stakeholders.
Information disclosure
We assess the "Impact Materiality" and "Financial Materiality" under a dual materiality assessment
General Meeting of Shareholders Materiality
Sustainable and stable returns framework and form the 2025 materiality topic matrix that has determined this year's materiality topics
Financial reports and interim announcements assess
Information transparency and their priorities.
Shareholders and Investor surveys, hotlines, online Q&A, etc.
investors Investor relations management
Performance presentation meeting and other The Strategy and ESG Committee under the Board of Directors determines the ESG topics of high
Confirmation
communication activities importance by reviewing the screening and analysis results. Identified financial materiality topics will
and
be highlighted in this Report based on the four pillars of "Governance - Strategy - Impact, Risk and
Disclosure
Opportunity Management - Indicators and Targets".
Trade unions and workers' congress
Employee rights protection
Employee training, activities, and
(including occupational health and
communication
safety) Material topics matrix of DSBJ
Employees Internal information exchange platform
Employee training and development High Production and
Employee complaint channel Emissions and Waste Operational Safety Product Quality and Safety
Management Addressing
Climate Change
Customer Relationship
Product quality and safety Management Information and
Customer relationship management Responsible Minerals Data Security
Product and service innovation
Materiality of the economic, environmental
Business Ethics and
Customer review Labor Management (Including
Anti-Corruption
Business continuity Resource Utilization and Occupational Health and Safety)
and social sustainability impacts
Customers Customer satisfaction survey Circular Economy
Industry Collaboration
Information and data security and Development Sustainable R&D and
Supply Chain Innovation
Digital and
Employee Equality Intelligent
and Diversity Transformation Employee Training
and Developmenta
Sustainable supply chain Supply chain audit
Responsible minerals Open cooperation
Water Resources Management
Industry collaboration and Communication Corporate Governance
Suppliers and partners
development Industry exchange conference Biodiversity Conservation
Community Engagement
(Including Public Voluntary
Product quality and safety
Media interaction Service)
Environmental impact management Governance dimension
Information disclosure
Public welfare and charity Environment dimension
Charitable projects
Community and public Community communication and
Volunteer activities Social dimension
development
Low Materiality of the Company's financial impact High
Analysis of Impacts, Risks and Opportunities of Material Topics
Scope of Impact Impact Cycle Scope of Impact Impact Cycle
Material Material
Risks and Opportunities Impact Level UN SGDs Risks and Opportunities Impact Level UN SGDs
Topics Upst- Opera- Downst- Short- Mid- Long- Topics Upst- Opera- Downst- Short- Mid- Long-
ream tions ream term term term ream tions ream term term term
There are risks related to design and research and
development, production and process, as well as reg- Insufficient employee training and development, im-
ulatory and compliance risks. If the Company fails to Negative proper performance management, and organizational
Product L culture risks may lead to talent loss risks, strategic
respond effectively, it may face regulatory penalties, impact
quality and entry restrictions, and a decline in market trust. and organizational change risks, etc. Negative
Positive Human M
safety impact
L A comprehensive employee learning and devel-
We will increase customer trust, enhance market share, impact capital
and gain competitive advantages by implementing development opment and talent cultivation system will strongly Positive
L
high standards of safety and quality practices. support the achievement of the Company's strategic impact
goals, enhance the company's brand and market
competitiveness, and contribute to the Company's
long-term and stable development.
Mismanagement of anti-fraud, anti-corruption, fair
competition, and anti-monopoly may lead to high
economic costs, operational risks, and reputational
Business Negative
impacts. L
ethics impact
and anti- Business ethics and anti-corruption management Physical risks and transition risks arising from climate
Positive
corruption help enterprises establish sound internal manage- M change may result in asset losses, increased costs and
impact
ment systems and processes, optimize internal man- expenses, and changes in market preferences; Negative
Addressing M
agement, and improve management efficiency and impact
Climate We may discover new business directions and form
transparency.
Change new product solutions in the green transition and Positive
M
market demand changes caused by climate change; impact
we may yield a stable power supply and energy-sav-
Investment in research and development may require
ing benefits through enhanced energy management.
substantial and unpredictable financial investment
due to technological risks, policy and regulatory risks,
Negative
market competition risks, and internationalization M
R&D and impact
challenges;
innovation Positive
Fostering new quality productive forces through L Supply chain quality risks, supply, compliance, and
impact
technological innovation and forward planning is ESG issues may lead to shortages of raw materials,
conducive to maintaining long-term market competi- cost increases, and delivery delays, thereby affecting
tiveness. business continuity and market competitiveness;
Negative
L
Sustainable Strengthening sustainable supply chain construction impact
supply chain can enhance supply chain resilience, ensure business
Positive
There are multidimensional risks such as technolog- continuity, reduce operational costs, strengthen mar- L
impact
ical risks, human risks, and management and opera- ket competitiveness, and attract long-term investors.
tional risks. Improper management of key data and Additionally, enhancing supply chain collaboration
Information Negative
customer privacy will lead to data breaches, resulting L can promote the application of new technologies and
security impact
in compliance risks or reputational damage, which in the Company’s transformation and upgrade.
and privacy turn lowers customer trust; Positive
protection M
impact
By safeguarding data security, we can enhance the
confidence of our international customers in coopera-
tion and develop more high-end markets.
If mineral sources do not meet responsible sourcing Negative
standards, particularly minerals such as tantalum, tin, L
Labor Improper management of labor and human rights Responsible impact
Negative tungsten, and gold (3TG), it may result in compliance
management issues such as forced labor, discriminatory practices, L minerals Positive
impact risks, reputational damage, customer losses, and M
(including and occupational health and safety in supply chain impact
even supply chain disruptions.
occupational management and company operations may lead to Positive
health and compliance risks, reputational damage, and employ- M
impact
safety) ee turnover.
S Low M Medium L High
Strengthening the Foundation
of Governance to Advance
the Path to High-Quality
Development
Corporate Governance 5
general meetings of shareholders
Standardized Governance were held throughout the year
Board Diversity
In strict accordance with the requirements of laws, regulations, and normative documents, such as the Company Law of the People's At DSBJ, we always recognize and firmly believe that a diverse Board of
Republic of China, the Securities Law of the People's Republic of China, the Code of Corporate Governance for Listed Companies, Directors is an important cornerstone for maintaining the Company's core
the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange, the Guidelines No. 1 on Self-regulatory Supervision for competitive advantages and achieving sustainable development. In strict
Companies Listed on the Shenzhen Stock Exchange - Standardized Operation of Companies Listed on the Main Board , DSBJ has proposals were reviewed and alignment with our Board Diversity Policy, we embed diversity principles
established a complete legal governance structure and modern organizational management system. We have formed a governance approved throughout the director selection process, comprehensively evaluating
system and mechanism with a clear division of powers and responsibilities among the power, decision-making, supervision, candidates on their professional expertise, industry experience, capacity to
and execution bodies that can ensure coordinated operation and effective checks and balances, and continuous optimization of perform duties, educational background, and independence. Through this
management documents and internal processes at all levels. Through these initiatives, DSBJ is constantly improving the governance rigorous and standardized mechanism, we continuously optimize the Board's
standardization and effectiveness to strengthen the foundation for stable development. composition to ensure a balanced mix of talents, expertise, experience, gender,
Governance structure 14
Board of Directors meetings were held
age, and educational background among its members, thereby providing solid
support for sound and efficient decision-making by the Board.
The Company strictly selects members of the Board in accordance with
The Company has established a corporate governance structure consisting of the General Meeting of Shareholders, the Board of
throughout the year prescribed procedures. As of the end of the reporting period, the Board
Directors, and the Management. The General Meeting of Shareholders exercises the voting rights on major issues such as the Company's
comprised 11 members in total, with significant diversity across multiple
business policies, investment plans, and the election of directors in accordance with laws. The Board of Directors is responsible to the
dimensions: one female director, demonstrating gender diversity; four
General Meeting of Shareholders and exercises the Company's management rights in accordance with the laws. The Board of Directors
independent directors, accounting for a sufficient proportion of the Board
has four specialized committees, namely, the Strategy and ESG Committee, the Audit Committee, the Nomination Committee and the
and ensuring strong decision-making independence; and one employee
Remuneration and Appraisal Committee, which perform their duties in accordance with the authorization from the Board of Directors to
representative director, safeguarding the legitimate rights and interests of
provide professional opinions and decision-making support for decisions of the Board of Directors. Among them, the Audit Committee, proposals were reviewed and employees and further enhancing the diversity of the Board's composition.
as a supervisory body, strictly fulfills its supervisory duties in accordance with the Company's Articles of Association and the Working approved In terms of expertise and academic qualifications, Board members possess
Rule of the Audit Committee under the Board of Directors, and continuously supervises the Company's financial status, management of
interdisciplinary expertise and extensive industry experience, spanning
raised funds, and performance of duties by directors and senior management to ensure the Company's standardized operation. During
business management, risk management, financial accounting, legal
the reporting period, the Company systematically reviewed and refined the corporate governance framework in response to evolving
compliance, and international operations. Notably, over 60% of directors hold
regulatory landscapes and the demands of governance best practices. These efforts have continuously elevated our governance
master's or doctoral degrees, providing robust professional support for the
standards and strengthened our compliance management capabilities. For detailed information on the corporate governance structure,
Board in discharging its duties. In addition, the Audit Committee comprises two
governance mechanism, equity structure, controlling shareholders, and de facto controllers, please refer to the 2025 Annual Report of
independent directors with a background in financial accounting, and several
Suzhou Dongshan Precision Manufacturing Co., Ltd.
meetings were held by the Strategy and directors bring extensive risk management experience, enabling the Board
ESG Committee throughout the year to effectively identify, prevent, and mitigate various operational risks. During
the reporting period, all Board members performed their respective duties
Structure of corporate governance
in an efficient and collaborative manner, ensuring that corporate governance
operates in a standardized and orderly manner.
General Meeting of Shareholders Strategy and ESG Committee To continuously consolidate the achievements of Board diversity and ensure the
standardized and efficient discharge of duties by the Board and its specialized
meetings were held by the Audit
Audit Committee committees, the Company has continuously refined its support and training
Committee
systems for directors. During the reporting period, the Company actively
Board of Directors
organized and facilitated the participation of directors and senior management
Remuneration and Appraisal Committee
in professional training programs hosted by regulatory bodies and industry
Management level Nomination Committee 2
meetings were held by the Remuneration
associations, covering critical areas including laws and regulations, corporate
governance, information disclosure, internal control, financial compliance, and
industry regulatory policies. Through these training programs, the Company
enabled its directors to stay abreast of the latest regulatory requirements
and Appraisal Committee
and industry development trends, continuously enhancing their professional
competence in discharging duties and the quality of their decision-making.
In strict accordance with regulatory requirements, such as the Rules for the General Meeting of Shareholders of Listed Companies, These initiatives further empower the Board to leverage the strengths of its
Management Measures for Independent Directors of Listed Companies, and internal policies, such as Rules of Procedure for General
Meetings of Shareholders, Rules of Procedure for the Board of Directors, Rules of Procedure for Specialized Meetings of Independent
Directors , the Company ensures the standardized convening of shareholders' and board meetings. By rigorously fulfilling procedures for
proposal deliberation, voting, and information disclosure, we guarantee that all shareholders exercise their equal rights to information
meeting was held by the Nomination
diverse composition, driving the Company's high-quality and sustainable
development.
Committee
and decision-making on major issues, thereby safeguarding the legitimate interests of all shareholders, particularly minority
shareholders.
Risk Management and Internal Control Enhancing interaction and mutual trust with investors
The Company places great importance on investor relations management, continuously improving its internal policies, such as the
In strict accordance with the requirements of the Company Law of the People's Republic of China, the Basic Norms of Enterprise Internal Investor Relations Management Policy , and expanding diversified communication channels with investors. Through results briefings,
Control and its supporting guidelines, as well as the regulatory requirements on internal control from the China Securities Regulatory investor conference calls, and other means, the Company maintains timely and effective communication with investors on matters
Commission and stock exchanges, DSBJ continuously improves the risk management and internal control system and establishes a risk including corporate governance, business operations, and sustainable development, fostering greater interaction and mutual trust
management architecture and work system adapted to the business scale and management needs. By promoting various special audits between the Company and its investors. In 2025, the Company deepened investors' understanding of the Company by holding results
and key project audits in an orderly manner, we have ensured the effective operation of the internal control system, safeguarding the briefings, participating in strategy conferences, conducting reverse roadshows, and receiving research visits. The Company listens
Company's sustainable and stable development. attentively to the views and suggestions of shareholders and potential investors, providing timely responses to their inquiries, and
building an ecosystem of positive engagement with investors.
The Board holds ultimate responsibility for the Company's overall risk management and internal control systems, delegating specific
oversight authority to the Audit Committee. In 2025, the Company revised the Working Rule of the Audit Committee under the Board of
Safeguarding the rights and interests of minority shareholders
Directors to further define the Audit Committee's core responsibilities in risk identification, internal control deficiency rectification, and
supervisory inspection to strengthen its supervisory effectiveness. The Company's audit department, as an internal supervision function The Company treats all shareholders equally and continuously standardizes the procedures for convening, holding, transacting
department independent of the business lines, comprehensively assesses the effectiveness of the internal control system through business at, and voting on the shareholders' general meeting, ensuring that investors, especially minority shareholders, are entitled to
standardized audit procedures. It formulates timely remedial actions for identified issues and tracks their implementation throughout the the right to be informed of and participate in major matters of the Company. With due consideration for the time, venue, and format
process, ensuring rigorous closed-loop management of internal control deficiencies. Furthermore, through normalized risk-prevention of the shareholders' general meeting, the Company has adopted a combination of on-site voting and online voting to facilitate the
training, we continuously enhance all employees' risk awareness and improve their risk management capabilities, consolidating the participation of shareholders, in particular minority shareholders. For major matters that may affect the interests of minority investors,
foundation for standardized operations and promoting the continuous optimization of our risk management and internal control systems. the Company counts and discloses the votes of minority investors separately, ensuring that their views are fully reflected. Through
During the reporting period, the Company continuously optimized its risk management and control processes, timely identifying and channels such as the "EasyIR" platform, the Company communicates with investors, listens attentively to the opinions and concerns of
assessing various risk factors in its operations, and maintained dynamic monitoring of risks closely related to its operations, including minority shareholders, and responds promptly to issues of concern to them. In 2025, the Company achieved a 100% response rate to
strategic, business, operational, compliance, and sustainability-related risks. This has enabled the Company to form a closed-loop inquiries from minority investors through the "EasyIR" platform, and arranged dedicated staff to answer the investor hotline, patiently
management cycle covering system-building, execution, oversight, and improvement, ensuring that its overall risk level remains within addressing inquiries from minority investors and safeguarding their legitimate rights and interests.
controllable limits. The Company promptly incorporates material ESG risks and opportunities into its risk review and business decision-
making processes, giving full consideration to them in its operational and financial planning, so as to better manage and mitigate risks Sharing the Company's development achievements
while seeking opportunities for growth and transformation. In line with its overseas strategic presence, the Company closely monitors
global trade policy developments, regularly assesses and provides early warnings on overseas business risks, and has established DSBJ is committed to delivering long-term, stable, and sustainable shareholder value. Since our listing, we have strictly adhered to
and continuously improved its internal control system for overseas businesses, laying a solid foundation for the implementation of its the Articles of Association to maintain a consistent and predictable cash dividend policy, continuously sharing the fruits of our high-
internationalization strategy. quality development with our investors. During the reporting period, we have formulated a prudent profit distribution plan that
balances operational needs with financial status and long-term growth, while ensuring daily operations and sustainable development.
The decision-making process of this plan, as supported by independent directors' opinions and approved by the General Meeting
of Shareholders after being reviewed and approved by the Board of Directors, underscores our commitment to standardized and
transparent governance, effectively safeguarding the legitimate rights and interests of all shareholders. In 2025, the Company
Risk identification Risk assessment Risk control successfully implemented the 2024 annual profit distribution plan, distributing a total of RMB 119 million in cash dividends, sharing
Identifying risks compre- Risk probability assessment Taking comprehensive strategies operating income with investors. Furthermore, we completed the repurchase of 4,202,200 shares cumulatively, all of which are
hensively by analyzing and measures of risk management earmarked for employee stock ownership or equity incentive plans. This repurchase effectively balanced the Company's long-term
Risk impact assessment development and reasonable returns to shareholders, aligning the interests of shareholders, employees, and the Company closely and
the Company's activities and control from the perspectives of
and business background risk avoidance, risk mitigation and fostering a collaborative ecosystem for shared long-term success.
Risk level determination
Tax Management
with a focus on key busi- risk transfer based on risk levels and
nesses, areas and opera- Effectiveness of risk control the Company's actual situation
tional links. measures assessment
Risk Monitoring and Early Warning
DSBJ has always upheld tax compliance and regulatory-adherent operations as the foundational cornerstone of corporate development,
incorporating tax management into strategic planning and daily operations. The headquarters coordinates the formulation of global tax
policies and the construction of a compliance management system, while domestic and overseas subsidiaries are responsible for localized
Protection of Investors' Rights and Interests
implementation and tax-related information reporting.
The Company has rigorously complied with domestic regulations, such as the Enterprise Income Tax Law of the People's Republic of China
and the Provisional Regulations on Value-Added Tax of the People's Republic of China , and the tax laws and regulations of the countries and
regions where it operates. We have formulated certain internal policies, such as the DSBJ Tax Compliance Management Regulations , which
standardize tax filing, risk management, tax incentives, and tax strategy alignment for global operations. With a dedicated tax team, we
Conducting information disclosure in a rigorous and standardized manner continued to optimize the tax management information system in 2025 to promote compliant and transparent tax governance, according
to which each business segment selected key subsidiaries to conduct tax compliance self-inspection and rectification. Concurrently, we
In strict accordance with regulatory documents such as the Securities Law of the People's Republic of China, Measures for the
also reject tax structures lacking commercial substance and adopt the principle of independent transactions for transfer pricing, paying
Administration of Information Disclosure by Listed Companies , as well as the Articles of Association and Information Disclosure
taxes in good faith, so as to help build a trusting and stable business environment. During the reporting period, DSBJ achieved a 100% tax
Management System , the Company, under the core principle of "truth, accuracy, completeness, and timeliness" in information
filing timeliness rate, received an A-level tax credit evaluation, and accurately completed overseas business tax filings, with no significant
disclosure, continuously improves the quality and standardization of information disclosure. Directed by the needs of investors, the
tax risk events or tax non-compliance reported.
Company discloses relevant information such as business management and development strategies in an all-round and multi-faceted
manner, ensuring investors' right to know and participate. In 2025, the Company cumulatively disclosed 4 periodic reports and 86 Driven by external tax regulatory requirements and operational needs, DSBJ has established a systematic, full-process tax risk control
temporary announcements, ensuring that various major matters are conveyed in a timely and accurate manner, effectively enhancing the mechanism centered on risk management and powered by digital technology. By continuously refining our tax risk indicator library, we
transparency of information disclosure. During the reporting period, the Company's information disclosure remained standardized and conduct routine identification, assessment, and dynamic monitoring of tax exposures. We have successfully shifted our tax strategy from
orderly, with no instances of false records, misleading statements, material omissions, or other disclosure irregularities. Concurrently, we reactive mitigation to proactive prediction and our control by front-loading compliance management into the early stages of business
maintained a vigilant watch over the public sentiment and market trading dynamics, promptly addressing market concerns and investor development, thereby achieving data-driven tax governance. Furthermore, our tax team organizes regular internal training sessions and
inquiries. These efforts serve to safeguard the legitimate rights and interests of investors and reinforce our reputation as a transparent and facilitates cross-departmental workshops to ensure that tax requirements are embedded into our business workflows, thereby enhancing
well-governed listed company. all employees' understanding and prioritization of tax compliance.
Business Ethics and Anti-Corruption
Governance
DSBJ strictly complies with laws and regulations and industry codes, such as the Company Law of the People's Republic of China, Business Ethics Culture Construction
the Anti-Unfair Competition Law of the People's Republic of China, the Anti-Monopoly Law of the People's Republic of China, and the
Guidelines for the Standardized Operation of Listed Companies . The Company has established a comprehensive structure covering The Company actively fosters a culture of business ethics, ensuring
business ethics and compliance management of the Company and its supply chain, solidifying the defense against breaches of business that its requirements in business ethics are communicated
ethics. The Board of Directors serves as the highest decision-making body for business ethics and anti-corruption management, while to employees, suppliers, and other internal and external
the Audit Committee subordinated to the Board of Directors, is responsible for overseeing the implementation of business ethics stakeholders. It also calls for the practical fulfillment of business
management systems and requirements and fulfilling its duties concerning significant compliance and business ethics matters. In ethics commitments across all levels of the organization. The
terms of operations, the audit department, as an independent oversight body within the Company, is responsible for assessing risks Company internally conducts effective business ethics promotion
from business ethics and anti-corruption matters, formulating related policies and systems, conducting routine audit supervision, and through employee handbooks, rules and regulations, newsletters,
collaborating with the human resources department to promote business ethics among all employees, thereby ensuring the Company etc., and regularly provides anti-fraud training and integrity and
consistently complies with high-standard compliance and ethical requirements. All functional departments of the Company strictly ethics education to the management and all employees (including
comply with and implement the relevant provisions on business ethics. part-time employees), so as to ensure that all employees maintain
integrity, honesty, and diligence in work and actively prevent
The Company implements a business ethics management system focused on the Policy for Management of Business Ethics and Integrity corrupt behavior. The Company has also established regulations
Efforts , achieving 100% coverage across all business segments and functional departments. This system requires the Company's such as the Gift Acceptance and Entertainment Management
directors, all employees, and all supply chains and partners to comply with anti-fraud, anti-money laundering, anti-corruption, fair Norms, the Conflict of Interest Management Norms, and the Anti-
competition and anti-monopoly, and conflict-of-interest prevention requirements. For suppliers, the Company has developed a Corruption Management Regulations to regulate employees'
dedicated policy, namely the Supply Chain Personnel Conduct Management Procedures and Standards, explicitly mandating business behaviors, requiring all employees to sign the Anti-Fraud and Anti- Business Ethics and Anti-Corruption Special Training
ethics and anti-corruption requirements for suppliers, so as to ensure that suppliers continuously improve their business ethics Bribery Commitment Letter, so as to ensure that every employee
management systems. Moreover, in addition to requirements for anti-commercial bribery, gift guidelines, and anti-unfair competition, complies with anti-corruption and integrity requirements.
some business segments have charity donation or sponsorship guidelines in their codes of business conduct, which have clarified
donation approval requirements to further prevent integrity risks.
Strategy and Management Mechanism Anti-Unfair Competition
The Company strictly complies with the Anti-Unfair Competition Law of the People's Republic of China, the Anti-Monopoly Law of the
People's Republic of China , and the relevant anti-monopoly and anti-unfair competition laws and regulations of the countries and
DSBJ recognizes business ethics as the cornerstone of corporate
regions where it operates. We encourage each business segment to establish anti-unfair competition policies, clearly prohibiting unfair
development. We have continuously improved and institutionalized
competition behaviors such as price manipulation, bid rigging, false advertising, and infringement of trade secrets. We are committed to
a robust business ethics and anti-corruption governance framework,
fostering a fairer and more transparent market competition environment. In 2025, the Company violated no anti-unfair competition laws
integrating enhanced training programs of business ethics and anti- Dongshan Precision joined the
and regulations.
corruption into the Company's development strategies and daily
operations. We also require our supply chain partners to comply
Anti-Fraud Alliance
with business ethics and anti-corruption requirements in order
Association
to safeguard our high-quality and sustainable growth. During the MULTEK Code of Business Conduct
reporting period, the Company has been involved in no major
We strive to outperform our competitors fairly and equitably, rather than through unethical or illegal business practices.
litigation cases related to corruption, bribery, or unfair competition.
We strictly forbid theft of proprietary information, acquisition of trade secrets without owners' authorization, and inducing
current or former employees of other organizations to disclose such confidential data. The Company's relevant personnel
shall endeavor to respect the rights of the clients, suppliers, competitors and employees of the Company and treat
them fairly and equitably. All relevant personnel of the Company shall refrain from deriving improper benefits through
manipulation, concealment and abuse of privileged information, misrepresentation of critical data or any deliberate unfair
trading practices.
Source Photonics BU's Code of Business Conduct and Corporate Governance
We prohibit monopolistic practices such as price fixing, market segmentation, and bid rigging, and the exchange of sensitive
commercial information with competitors. We strictly comply with anti-monopoly regulations in all operating locations,
such as the United States, the European Union, and China, preventing the obtaining of commercial opportunities through
improper means to ensure fair competition.
Supply Chain Business Ethics Management
Impact, Risk, and Opportunity Management
The Company has established the Management Procedures and
Regulations for Supply Chain Personnel Conduct and requires all key
suppliers to sign the Integrity Cooperation Agreement, the Anti-Fraud
and Anti-Commercial Bribery Commitment Letter or the Anti-Commercial DSBJ integrates business ethics and anti-corruption risks into the Company's comprehensive risk management
Bribery Agreement before cooperation, continuously improving supply system. To properly address business ethics-related risks, the Company regularly conducts identification and
chain business ethics and anti-corruption management. We also set up assessment of business ethics risks (refer to the "Risk Management and Internal Control" section of this report
external reporting channels to specifically identify and prevent business for detailed processes). In the event of significant changes in the external environment or some major events or
ethics risks in the commercial process. The Company conducts audits on business changes in the Company, we will also assess these risks timely. The Company has defined risk control
the suppliers' performance of the code of conduct and management of strategies around business ethics risk points in the areas of trading opportunities, power positions, funding costs,
business ethics, as well as due diligence investigations, project audits, and compliance and regulation to ensure that all business practices meet ethical and compliance requirements.
compliance checks with partners based on cooperation projects when
necessary, to ensure continuous supervision of supply chain compliance At the Group level, DSBJ coordinates, supervises, and guides each BU in establishing overall control procedures and
risks. Suppliers with serious violations will be blacklisted and punished mechanisms, with audit results reported directly to the Audit Committee of the Board of Directors. The Company
according to the Company's relevant regulations. In 2025, a total of 4,122 has established an audit and inspection department operating independently of the business operations system,
suppliers signed integrity agreements and integrity commitments. which exercises investigation authority independently. The Company develops an annual audit plan and carries out
regular audits on the implementation of business ethics-related policies and business ethics risks across various
business scenarios through compliance audits, operational audits, and special audits. Internal audits relating to
business ethics can cover all of the Company's operating locations and all business lines within every three-year
cycle. Based on audit findings, the Company develops continuous improvement plans to drive the continuous
Reporting Management improvement and refinement of its business ethics and anti-corruption system.
The Company has zero tolerance for behavior that violates business
ethics, and has formulated the Misconduct Reporting Mechanism and
Indicators and Targets
Handling Measures to continuously improve its reporting and handling
mechanism. The Company ensures that all employees are aware of the
reporting channels and procedures through training sessions, emails,
and publicity notices. Employees of the Company at all levels, as well as
all external parties having direct or indirect economic dealings with the Indicators and targets Achievement in 2025
Company, may report any actual or suspected business ethics violations
on the part of the Company or its personnel through various channels, The Company was involved in 0 major litigation cases
including reporting hotlines, emails, and written correspondence. The regarding corruption and bribery, fraud, or unfair Targets achieved
Company's internal audit department is responsible for receiving and
competition
handling complaints and reports relating to disciplinary violations, with
dedicated personnel responsible for receiving, processing, and providing
feedback on complaints and reports, as well as investigating disciplinary Targets achieved
cases. Where acts of corruption or bribery are confirmed, the Company
will take action against the individuals involved based on the severity 100% coverage of business ethics and anti-corruption 100% coverage of business ethics and
of the circumstances, including position transfer, demotion, salary training for directors and employees anti-corruption training for directors and
reduction, termination of employment contract, and referral for judicial employees, with an average training duration
Reporting Channels proceedings. of 3 hours per person
The Company strictly adheres to the principles of independence,
DSBJ: jubao@dsbj.com
objectivity, fairness, and confidentiality. In accordance with relevant
MFLEX BU: jubao@mflex.com 100% effective handling rate of reporting Targets achieved
provisions on protecting whistleblowers, the Company strictly maintains
Multek BU: fxgl@Multek.com the confidentiality of the whistleblowers' personal information and the
reporting materials they provide throughout the process of acceptance, Targets achieved
P-Manufacturing BU: jm.lianjie@dsbj.com Full coverage and confirmation of conflict of interest
registration, and investigation. At the same time, the Company rigorously 100% confirmation rate of conflict of interest
TCTD BU: lian.jie@se.dsbj.com safeguards the personal safety of whistleblowers and harshly punishes declarations for employees at D6 level and above in the
declarations for employees at D6 level and
Source Photonics BU: SP-Ethics@ any retaliatory actions. Individuals found to violate confidentiality rules Company
above in the Company
sourcephotonics.com or engage in retaliatory actions against whistleblowers will be held
accountable in accordance with the relevant provisions of the Company,
with severe penalties imposed on those involved in retaliatory actions.
Individuals committing criminal acts will be referred to judicial authorities
for prosecution. Whistleblowers who provide credible reports and can
recover significant losses for the Company will be rewarded based on the
amount saved.
Digital and Intelligent Transformation AI-driven Empowerment
The Company integrates AI technology into its core business, embedding digital intelligence throughout the entire product
lifecycle. From the source design optimization at the intelligent engineering stage to precise supply-demand matching and on-
DSBJ has proactively embraced technological changes with a clear digital and intelligent strategic layout for 2024-2026. We
site visual loss reduction in intelligent production, and the efficiency improvement under digital intelligence operation, we
accelerate the deep synergy of digital transformation and AI to drive intelligent business decision-making, optimize resource
empower high-quality development through end-to-end digital capabilities.
allocation and push technological innovation, which has not only achieved coordinated progress in engineering innovation
and intelligent manufacturing, but also injected fresh momentum into the Company's high-quality development. In 2025, Intelligent Engineering and R&D Innovation: The deep integration of artificial intelligence and engineering methodologies
the Company passed the Data Management Capability Maturity Assessment Model (DCMM) Level 4 certification, reaching the has covered key links of product design and engineering decision-making. Automated algorithm and plan optimization have
industry-leading level; and won the title of Jiangsu Province Advanced-level Smart Factory and the title of 2025 Excellent-level enhanced efficiency and quality consistency, building a robust foundation for sustainable manufacturing.
Smart Factory.
Intelligent Manufacturing & Visual Analytics: We deploy edge-AI vision at the production frontline to monitor equipment
status and product quality in real time. This reduces rework and resource waste, fostering green production while stabilizing
Digital and intelligent integration to empower innovation and development
operations against potential equipment hazards.
Digital and Intelligent Production and Low-Carbon Consumption: We significantly sharpen demand forecasting by using
AI algorithms through the iteration MRP 2.0 (Intelligent Material Requirements Planning), and effectively reduce carbon
Deepen the full life-cycle management of data governance spanning from organizational culture,
emissions per unit of output value by minimizing inventory backlogs and energy waste through refined production
institutional frameworks, process collaboration, and assessment incentives to strengthen the capabilities
scheduling.
of the big data platform and provide reliable, efficient, and intelligent data services.
Digital and Intelligent Operations: We automate manufacturing and administrative workflows by leveraging Intelligent
Document Processing (IDP) and AI Agents. This elevates operational agility while facilitating a low-carbon office ecosystem.
Apply artificial intelligence in business scenarios such as smart manufacturing, smart office, smart
park, and digital and intelligent supply chain, starting from "AI+Quality", "AI+Cost", "AI+Delivery" and Digital and Intelligent Talent Cultivation
"AI+Service&Safety".
Digital and Intelligent talents act as a key driving force behind the implementation of the digital and intelligent strategy
of DSBJ. Through the integration of AI engineering, BI self-service analytics, and a robust data governance framework, we
have established a closed-loop system for digital-intelligent talent development. Adhering to the principle of "Governance-
led, Analysis-enabled, and AI-driven", this framework facilitates a strategic pivot from traditional "technical training" toward
Holistically plan and systematize AI capabilities across computational resources, algorithmic models,
"capability assetization." In 2025, we achieved 100% coverage for data literacy training for all employees.
governance, and application services, while developing secure and reliable intelligent systems and
engineering platforms with robust model generalization capabilities.
AI Capability (Engine) BI Capability (Hub) Data governance (Foundation)
By means of engineering training, pro- By implementing self-service anal- Through the construction of enter-
ject practice, and AI competitions, we ysis and AI-powered data querying, prise-level knowledge bases, as well as
directly transform technology into pro- we have effectively returned deci- the DCMM system and internal audit
Improve the digital and intelligent talent development system to cultivate well-rounded digital talent ductivity, accelerating the large-scale sion-making autonomy to its business mechanisms, we can ensure that the
aligned with business needs. application of the Group's AI agents. units. This strategic shift drives our cul- enterprise data foundation is "trust-
tural pivot toward a truly data-driven worthy, reliable, and usable".
organization.
Case
Data governance and big data platform construction
AI Competition: Promoting Organizational-Level Capability Leap
Data governance and big data platform construction serve as the foundational cornerstone of intelligent manufacturing. The
Company has established the data governance strategy by formulating policies such as the Big Data Platform Management Through the thematic empowerment of the Group's AI competition, the Company has achieved a key leap from
Specification and the Data Quality Control Regulation , and continues to improve the big data platform architecture to achieve "learning" to "application", promoting AI capabilities from individual skill improvement to organizational capability
seamless integration of workforce mobility, logistics, capital flow, process optimization, information integration, and technology upgrade:
deployment, thereby significantly enhancing operational efficiency and fostering industrial upgrading. In 2025, the new-
generation platform "Dongshan Cloud" independently built by the Company was fully put into operation, further promoting
data integration and intelligent applications. This platform not only achieved a key business data accuracy rate of no less than 800 students participated, creating a broad learning atmosphere;
marketing, and finance, significantly empowering new industrialization. Several innovative topics with high potential for implementation were incubated.
Information Security
and Privacy Protection
Governance
Comprehensive Information and Data Security Management
The Company has developed the Information Classification Management Procedures to manage and control its information data by different
DSBJ strictly complies with China's laws and regulations, such as the Cybersecurity Law of the
categories and confidential levels. We implement targeted security measures such as isolation, access control, download restrictions, status
People's Republic of China, the Data Security Law of the People's Republic of China, and the
monitoring, and approval control, and de-sensitize, encrypt, and de-identify sensitive data according to business needs, ensuring that key
Personal Information Protection Law of the People's Republic of China , as well as those of other access and operations are fully tracked, traceable, and auditable.
countries where the Company operates businesses, such as the U.S. Cybersecurity Information Information Data
Sharing Act, the Amendment of Personal Data Protection Act (PDPA) in Singapore. Accordingly, We also develop the Important Information Backup Management Procedures to deploy a data backup system (including incremental
Management
backups, periodic batch backups, and data recovery testing) and an audit system. With these measures, we can implement strict control over
the Company has established a comprehensive governance structure for information security and
high-risk operations, and build a comprehensive data mis-operation protection mechanism that combines pre-emptive defense and post-
privacy protection. The Company, in cooperation with well-known global third-party institutions,
event response, so as to comprehensively ensure data availability, integrity, and business continuity.
has researched and translated global data protection laws, regulations, and policy standards.
The Group's information security team has established an information security and privacy With strengthened assessment on cross-border data risk, we achieved 100% of cross-border data transmission compliance rate in 2025.
protection working group to advance the development, implementation, and supervision of
information security and privacy management planning. Through these initiatives, we ensure that We continuously promote the construction of the information security management platform to comprehensively strengthen the original
the information security operation and maintenance system is running effectively. In addition, security in-depth defense technology system, and deploy security enhancement technologies simultaneously with business information
Information
each BU is equipped with dedicated personnel responsible for implementing specific tasks related flow (or data flow), including internet exposure surface management, AI-based security assistants for applications, vulnerability scanning,
to information security and privacy protection, so as to strengthen information data security Security Technical situation awareness, etc., to establish a data security protection capability that meets DCMM Level 4.
management and improve data governance. Protection
We collect relevant log data and analyze their relationships to detect potential security events, enhancing system security and reducing
The Company has established a series of institutional frameworks including the Information potential threats to ensure the security and reliability of information and data.
Security Laws and Regulations Management Procedures, the Information Security Risk
Management Procedures, the Important Information Backup Management Procedures, the The Company regularly audits its information security and privacy management system in conjunction with business characteristics,
Information Security Incident Management Procedures, and the Information Security and Privacy including internal information security audits (at least once a year), annual external audits by ISO 27001 certification bodies, and annual
Handbook , in order to create a comprehensive information security protection system that covers information security audits by global leading clients, to ensure the effective operation and continual improvement of the information
Information
all business areas of the Company, thereby ensuring the security of information infrastructure, security management system to better safeguard business continuity and data asset security.
Security Audit
application systems, products, and customer information. Our information security team is composed of seasoned experts credentialed with authoritative domestic and international information
Certification
security qualifications, including CISSP (Certified Information Systems Security Professional), CISP (Certified Information Security
Professional), ISO27001 LA (Lead Auditor), and CDPSE (Certified Data Privacy Solutions Engineer), forming a multi-dimensional security
Strategy and Management Mechanism
capability matrix.
The Company has developed the Information Security Incident Management Procedures , continuously refining the protocols for threat
With reference to the latest requirements of ISO 27001 information security management system reporting by employees and corresponding remediation. Employees are empowered to report anomalies, security incidents, and suspicious
and ISO 27701 personal privacy information management system, DSBJ has adopted various activities promptly, triggering a tiered response mechanism led by the information security department for coordination and treatment and
Information
measures to continuously improve the overall information security level, including establishing an reporting to the management. This structured approach ensures a full audit trail—recordable, analyzable, and traceable—from discovery to
security resolution, and further promotes the closed-loop implementation of corrective actions.
information security management platform, unifying information security management policies,
emergency
implementing centralized deployment of information security, and clarifying the requirements We have established a complete information security incident response and emergency handling mechanism. Annually, we formulate
management
and standards for employee behaviors in information security management, information security plans to conduct a series of emergency drills and offensive and defensive drills targeting critical applications, networks, and data on a
technology, and emergency response and conducting enhanced training and regular audits on regular basis. By conducting real-world validations across diverse mission-critical scenarios, we drive continuous iterative improvements,
information security and privacy protection. significantly enhancing our rapid response capabilities and overall business resilience.
The Company regularly (e.g., monthly, quarterly or semi-annually) conducts training for all employees Information security
All BUs of DSBJ have been certified with the to enhance their awareness and improve their skills in information security and privacy management. and privacy protection
ISO 27001 Information Security Management Employees in various business segments can also take information security courses on online learning training coverage
platforms to ensure regularized training. In 2025, the Company conducted 12 information security and
System Certification
Information privacy protection training sessions, with assessments for some important training sessions.
DSG has been certified with security training
All new employees will receive concentrated training on information security awareness after joining
the ISO 27701 Personal Privacy Information Management System and promotion the Company (in conjunction with the new employee onboarding training), in order to bring information Employee Confidentiality
security awareness to new employees at their first stage of onboarding. Agreement Execution Rate
MFLEX and Multek have been awarded the title of
TISAX Certification (Trusted Information Security Assessment Exchange)
We conducted simulated phishing exercises every month and held information security weeks regularly to
strengthen information security publicity. 100%
Supply Chain Information Security Management Impact, Risk, and Opportunity Management
The Company has incorporated information security and privacy requirements into supply chain management, and continuously DSBJ has developed the Information Security Risk Management Procedures , which comprehensively cover information security
improves normative documents such as the Supply Relationship Management Procedures and the Supplier Policies . Before risk identification, risk assessment and analysis, risk treatment, residual risk disposition, and risk control. By quantifying risk
cooperation, we will assess the information security and privacy risks that may be brought about by supplier services to ensure level, the Company can more accurately identify and assess potential information security risks and develop targeted response
that the products or services they provide comply with the laws and regulations and industry standards of the operating location. measures to ensure that information security and privacy protection risks are visible, preventable, and controllable. The
We have also formulated relevant policies, such as the Supplier Information Security Verification Plan, the Supplier Information Company conducts an information security risk assessment covering the entire business scope at least once a year, and updates
Security Verification Form, the Cloud Control Questionnaire, the Cloud Service Security Audit Questionnaire and conduct security the assessment in response to iterations of intelligent manufacturing systems or big data platforms, changes in the Company's
management audits on suppliers and business partners according to the requirements of supply chain information security business, and information security incidents, to ensure the timeliness and effectiveness of risk management.
management and annual security audits on suppliers and business partners related to core business systems to ensure that their
information security and privacy management meet the requirements. Suppliers are required to execute the Supplier Service In the information security risk assessment process, the Company systematically identified various potential risks, including
Confidentiality Agreement to guarantee they strictly meet the local information security requirements. technical risks, human risks, management risks, and compliance risks (closely following the regulatory policies of the operating
locations and the audit requirements of major customers). These risks are incorporated into the risk management system
In addition, we continuously strengthen the publicity of information security requirements to suppliers and contractor employees and embedded in system construction and business processes to form a closed-loop management spanning identification,
during their entry and service with clarified boundaries of security services. We urge suppliers and contractors to conduct security assessment, governance, verification, and improvement. By improving the information security management system, upgrading
awareness training for their personnel and incorporate the implementation into supply chain security management. information security prevention and control technology capabilities, and enhancing information security emergency response
capabilities, we have achieved intelligent risk prevention and control for information and data security, ensuring the security of
the Company's data assets and the protection of personal information.
DSG incorporates information security and privacy protection requirements into partner contract terms. All partners
must comply with information security and privacy management requirements and accept compliance inspections
Indicators and Targets
and supervision as stipulated in the contract, with a focus on access control, ensuring access authorization,
permission changes, and account lifecycle management are under control. DSG also limits data usage scope
and purpose, strictly implementing confidentiality obligations and anti-leakage responsibilities. In addition, it
establishes an immediate notification and collaborative handling mechanism for security incidents, ensuring that
Indicators and targets Achievement in 2025
third-party data contact and processing are fully compliant and controllable.
Targets achieved
Information Security Management Index > 4.0
Information Security Management Index 4.1
Targets achieved
Protection of Personal Information and Privacy Network resilience > 90%
Network Resilience 97%
The C ompany has developed documents such as the DSBJ Privacy Policy, the Personal Identifiable Information Control and
Information security and PII training coverage is no less than Targets achieved
Management Procedures, and the Information Security and Privacy Manual , integrating privacy protection requirements into
product services and operational management. We conduct privacy assessments and strictly implement privacy compliance
requirements throughout the entire lifecycle of data collection, storage, use, processing, transmission, provision, deletion, Targets achieved
Significant information security incidents < 1 incident
and destruction, thereby safeguarding the right to know, to choose, and to control personal information. We also establish an No major information security incidents
emergency response plan to ensure that customer information is not leaked.
Targets achieved
The Company emphasizes customer information protection. Each business segment has formulated internal policies such as No information leakage incidents No data security incidents (information leakage, loss,
the Customer Information Security Management Regulations, the Data Leakage Prevention Security Management Operating damage)
Instructions, and the Information Security Baseline , to ensure that customer information processing activities comply with
laws and regulations of the places of operation, such as the Personal Information Protection Law, the Data Security Law, and
the EU GDPR. Adhering to the principle of "Data Minimization", the Company ensures that all customer information collection
is conducted with informed and explicit consent, with clear disclosure regarding the purpose, methodology, and scope of
processing. To institutionalize these protections, we execute confidentiality and information security agreements that clearly
delineate responsibility boundaries, ensuring full alignment with regulatory standards and client mandates. Any information
leakage events are required to notify clients within mandated timelines. We also reinforce technical protection by implementing
strict data access control measures, establishing a hierarchical permission management and access monitoring mechanism,
and deploying Data Loss Prevention (DLP) systems to mitigate risks of leakage, tampering, and unauthorized misuse. In
addition, we enhance employees' security awareness and compliance capabilities through online training, offline promotion,
journal publications, and information security month activities.
Fostering Partnerships
to Build a Resilient and
Sustainable Supply Chain
Governance
Supplier Screening and Onboarding
The quality, resilience, and sustainability of the supply chain are critical to the robust development of DSBJ. The Company has
The Company has established a strict supplier screening and
established a sustainable supply chain working group. The Supply Chain Management Center at the Company's headquarters is Total number of suppliers:
onboarding mechanism. An inspection team composed of
responsible for identifying and assessing supply chain risks, formulating or updating policies and systems related to sustainable
multiple departments (including procurement, quality, and
supply chain construction, and promoting sustainable supply chain management, balancing security and development.
The Supply Chain Management Department or Supply Chain Management Center of each BU is responsible for centralized
management of suppliers belonging to its own business segment, including continuous optimization of the supplier pool, and
supplier audits, evaluations, and controls in collaboration with relevant departments such as R&D, quality, and EHS, to jointly
evaluations across dimensions, including supply delivery
capability, financial risk capability, quality and service
assurance, technical engineering capability, and compliance
ensure the security, stability, and high quality of the supply chain.
and sustainability requirements. Only those who meet these
The Company strictly complies with relevant national laws and regulations such as the Law of the People's Republic of China stringent criteria are admitted to our qualified supplier
on Bid Invitation and Bidding and the Regulation on the Implementation of the Law of the People's Republic of China on Bid list, effectively mitigating supply chain risks at the source.
Invitation and Bidding . We have formulated institutional frameworks and guidelines related to bid invitation, procurement Furthermore, we uphold an "integrity-based procurement"
and supplier management, such as the Supplier Management Specification, the Supplier Management Control Procedure, and China region suppliers (including policy, adhering to the principles of fairness, impartiality, and
the Supplier Performance Evaluation Procedure to build a stable and reliable supply chain guarantee system and enhance the Hong Kong, Macao, and Taiwan): transparency. We treat small and medium-sized enterprise
competitive advantages of the industrial chain. suppliers with equity, establishing a healthy and effective
Strategy and Management Mechanism Supplier Evaluation and Management
The Company employs a dual-track model, namely, integrating
Guided by the Company's business strategy, DSBJ strives to create a fair and equitable procurement environment that can real-time dynamic monitoring with structured annual audits,
deepen the full lifecycle management of suppliers. Relying on the supply chain digital platform and the data-and-intelligence- to supervise and manage qualified suppliers. Guided by
Overseas suppliers:
driven power, we continuously improve the quality and risk resistance capabilities of the supply chain, striving to build a our Supplier Performance Evaluation Procedures and other
normative requirements, we develop an annual supplier audit
strategic, collaborative, risk controllable, and competitive sustainable supply chain system.
schedule that encompasses qualification reviews, document
verifications, on-site audits, annual assessments and other
Supplier Lifecycle Management
comprehensive methods to conduct regular supervision and
all-around evaluation on suppliers' contractual fulfillment,
quality management, technical capabilities, financial health,
EHS management, labor management, chemical substance
The Company has established a full-lifecycle management system and mechanism for suppliers. Guided by the Supplier
control, business ethics and anti-corruption. Based on these
Audit Procedure and the Supplier Performance Evaluation Procedure , each business segment enforces rigorous standards for
evaluation outcomes, the Company provides targeted support
admission, assessment, and dynamic oversight over suppliers. By prioritizing partnerships with high-caliber suppliers while
for suppliers' capacity building.
intensifying social responsibility audits, we have established a long-term stable and mutually beneficial cooperative relationship
with suppliers, fostering a supply chain ecosystem with sustainable competitiveness. In 2025, the Company's headquarters
and various business segments accelerated the digitalization of supply chain management. By standardizing management
processes and fostering collaboration, we systematically enhanced operational efficiency and responsiveness across the supply
chain.
Note: In 2025, the Company refined its supply chain statistical methodology to focus on active suppliers, providing a more objective reflection of our
operational reality. Please note that the "Responsible Mineral Sourcing" section excludes data from the Source business segment.
We divide suppliers into three levels: A, B, and C based on the comprehensive
evaluation results, and implement hierarchical and classified management with Sustainable Procurement
differentiated control measures. We also dynamically adjust these levels, subject
Total number of suppliers
to the evaluation every year. For non-conformities detected in the evaluation in the year undergoing desk DSBJ has incorporated the sustainable development requirements into its supply chain management system and promotes each
and audit, the Company urges suppliers to carry out rectification and acceptance review/on-site assessment: business segment to formulate the requirements for suppliers' ESG-related code of conduct in accordance with the Electronic Industry
through report improvement and other methods. We provide timely feedback Code of Conduct (EICC), the Code of Conduct for Responsible Business Alliance , and a series of standards issued by the International
to suppliers based on audit results, clarify improvement requirements and
completion deadlines, and verify the effectiveness of improvement measures.
In the process of supplier improvement, the Company's business segments
continuously strengthen their ability to support supplier improvement. Through
in sustainable development, with great attention paid to ESG factors, ensuring that suppliers' performance in governance, social, and
environmental aspects meets the requirements. At the supplier admission stage, the Company requires suppliers to sign the Supplier
Social Responsibility Commitment Letter and the Supplier Social Code of Conduct Assurance Agreement, the Integrity Agreement
training or technical support, our business segments help suppliers improve to make commitments for labor rights and interests, occupational health and safety, environmental protection, business ethics, etc.
their capabilities and assist suppliers in taking measures to solve problems In addition, the Company identifies, assesses, and controls potential ESG risks in the supply chain according to the ESG verification
within a reasonable time to ensure the compliant and efficient operation of the documents of the suppliers, to ensure the sustainability and stability of the supply chain. Please refer to the "Strengthening the
supply chain. We make progress together with suppliers to enhance the overall Foundation of Governance to Advance the Path to High-Quality Development/Business Ethics and Anti-Corruption" chapter for detailed
Number of suppliers supported in
competitiveness of the industrial chain. information on supply chain business ethics and anti-corruption management.
implementing corrective actions
The Company has established clear exit trigger conditions. When a supplier's and improvement plans: In addition, with emphasis on protecting suppliers' rights and interests, the Company treats suppliers faithfully while ensuring equitable
performance level is rated as C, the Company will strictly control transactions treatment of SME partners to uphold their legitimate rights and interests.
with the supplier, promptly initiate the exit procedure, terminate the cooperative
relationship with it, and pursue relevant responsibilities and losses according to
the actual situation. The Company synchronously adjusts procurement strategies
and alternative solutions to ensure business continuity and product quality safety.
Evaluate Level Control Measures
Quality Risk Control
The Company has established internal management policies such as the Supply Chain Management Policy and the Supplier Quality
Priority procurement. We encourage suppliers at this level
Number of suppliers covered Management Specification , to set up requirements for the quality qualifications of suppliers. According to the requirements, suppliers
to continuously improve their weaknesses, and take positive
A by capacity building programs should have professional qualifications for the services or products they provide and establish a sound quality management system
incentive measures for these suppliers while urging them to
make improvements. (including training): complying with current laws and regulations, including the ISO 9001 quality system certification and the IATF 16949 quality system
certification (for suppliers that produce automotive parts). Suppliers must continuously meet these requirements. At the same time, the
Company requires key suppliers to execute the Supplier Quality Assurance Agreement.
It refers to the level of normal procurement. We require
suppliers at this level to rectify and submit improvement The Company has established a shared quality intelligence mechanism with its suppliers, continuously refining quality management
B
reports within a specified time, and provide them with standards across all business segments. Guided by the supplier audit management procedures, we conduct quality audits and
support as appropriate. assessments (including specialized assessment methodologies for parts of critical raw materials) with the audit scope encompassing
quality management systems, product design and development, material management, manufacturing process management, change
It refers to the level of restricted procurement. We will initiate management, non-conforming product control, improvement and after-sales service, and hazardous substance management. Each
C
supplier exit procedures for suppliers at this level. business segment formulates and strictly implements an annual supplier audit schedule, supplemented by event-driven dynamic
audits to address any quality issues or other abnormalities. The procurement department and the quality department perform routine
Number of suppliers terminated
reviews and analytics on supplier quality audits and assessments. For quality problems discovered during the process, we promptly
due to significant actual/potential urge suppliers to make improvements within a specified period based on product requirements, and, if necessary, provide training
negative impacts: or targeted coaching to improve quality management capabilities or assist in optimizing technical processes to catalyze product
upgrades. For indirect materials, we extend our quality mandates for secondary suppliers to the supplier quality management process,
Supporting Suppliers' Growth
The Company actively fosters cooperation and exchange with its suppliers.
Through technical forums, specialized training, and robust daily communication
channels, we synchronize production demands, management specifications, and
technical policy shifts, establishing a solid framework for collaborative innovation
and value-chain quality enhancement. Furthermore, we collaborate with suppliers
to conduct performance debriefs, strategize remediation measures, and provide
special training, and share with suppliers our experience and lessons learned to
preemptively address potential risks. By empowering suppliers to refine their
process technologies and optimize operational workflows, we have achieved
common growth by upholding the philosophy of openness and mutual prosperity.
During the reporting period, our business segments institutionalized supplier-
based thematic exchanges and continuous improvement initiatives, further
consolidating the foundation for collaborative growth and sustainable supply of
the industrial chain.
Suppliers certified to the quality
management system:
Suppliers that have executed the quality
assurance agreement:
Suppliers certified to the IECQ QC
Process Management System:
Labor and Human Rights Risk Management Suppliers certified to the Suppliers successfully passed third-party
In accordance with the requirements of the International Labor Organization (ILO), the Responsible Business Alliance (RBA) occupational health and safety ESG audits, such as the Responsible
Code of Conduct, and the relevant laws and regulations of its operating locations, DSBJ drives its various business segments management system: Business Alliance (RBA) and Sedex:
to sign the Supplier Social Code of Conduct (COC) Assurance Agreement and related documents with suppliers, covering
the prohibition of child labor and forced labor, working hours and rest periods, anti-discrimination, equal pay for equal
work, collective bargaining, and occupational health and safety. These efforts are aimed at guiding suppliers to strengthen
sustainability management and ensuring that suppliers produce goods and provide services in a manner that complies with
human rights requirements and ethical standards.
Green Supply Chain Construction
Human rights and anti- Prohibition of forced Employment Occupational Driven by the Company, each business segment actively implements green
discrimination labor conditions Health and Safety procurement and signs the Supplier Green Environmental Protection Agreement
and the Commitment Letter for Environmental and Occupational Health and Safety
All employees enjoy the It is prohibited to employ Child labor is prohibited; It is required to provide
Management with suppliers. They require suppliers to use limited resources prudently
rights and interests of free forced labor; a healthy and safe
Wages must comply and responsibly, guarantee that all production processes of the products comply with
and equal consultation working environment Suppliers certified
It is prohibited to with national laws or the requirements of environmental laws and regulations, and minimize the impact of
and collective bargaining; and protective to an environmental
require employees to industry standards and the business activities on the environment. In addition, all business segments mandate
measures; management system:
Any form of coercion is pay deposits or provide employees should be suppliers to execute the Restricted Substances Compliance Agreements and the REACH
prohibited; identity documents as paid equally for equal It is required to provide Substances of Very High Concern Disclosure Statements and provide third-party testing
Any form of prejudice
and discrimination is
prohibited.
collateral. work;
Forced labor is
prohibited.
appropriate health and
safety information and
training.
certificates. They also regularly implement supplier hazardous substance management,
such as timely synchronizing document update requirements for hazardous substance
restriction on suppliers' materials and organizing on-site audits of suppliers' hazardous
substance compliance, to ensure that the materials provided by suppliers comply with
RoHS directives, REACH, halogen-free (HF) and other relevant laws and regulations of
the places of operation on electronic product pollution control, jointly promoting the
green development of the supply chain.
Resilient Supply Chain Responsible Mineral Sourcing
Establishing a resilient supply chain and ensuring business continuity are important guarantees for the Company's stable In accordance with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected
operations. The Company has maintained the improvement on the supply chain business continuity plan and the optimization and High-Risk Areas and other applicable standards, the Company has formulated its Conflict Minerals Procurement Policy
of the supply chain structure to ensure that suppliers have diversified backgrounds and come from multiple channels. The and established a sound responsible minerals due diligence system. The Company has developed clear and transparent
Company has also conducted enhanced preventive control measures against factors such as supply chain disruptions, price management procedures for the use of mineral resources in its production and operations to identify and manage potential
increases, and unexpected events, effectively preventing potential risks in the supply chain and strengthening supply chain risks. The Company commits to ensuring that its products contain no "conflict minerals" sourced from areas controlled by non-
resilience. state armed groups in the Democratic Republic of the Congo (DRC) or its adjoining countries and regions, tracing the origins of
gold (Au), tantalum (Ta), tin (Sn), and tungsten (W) contained in all products to ensure the legality of raw material sources, and
upholding ethical procurement practices.
To prevent delivery delays or insufficient supply caused by factors such as climate, distance,
and policies, the Company encourages the diversification of supply resources, deeply exploring
resource markets and analyzing development trends to continuously develop and optimize
supplier resources while maintaining existing suppliers. Through procurement from diversified
Establishing
diversified supply ways and channels, the Company has reduced exclusive and intermediary purchases, thereby Communication and Implementation of Conflict Minerals Procurement Policy
channels mitigating the risk of single sourcing while lowering procurement costs and maintaining raw
material supply stability. The Company drives its various business segments to communicate the conflict minerals policy to direct suppliers through
multiple channels, requiring them to sign the Commitment Letter for Not Using Conflict Minerals and incorporating mineral
resource management requirements into contracts and agreements with suppliers. The Company has also formulated conflict
The Company continuously improves its intelligent warehousing system, strengthens real-time
minerals management procedures, conducts responsible minerals due diligence across the supply chain, and requires all
monitoring and forecasting of inventory levels for key materials and high-risk categories, and
relevant suppliers to strictly comply. In addition, the Company's various business segments encourage suppliers to establish
establishes appropriate safety stock thresholds to ensure the stable execution of production
their own conflict minerals policies and drive them to cascade responsibility requirements upstream through the supply chain
plans. Each business segment, based on its operational needs, regularly provides suppliers
Setting up tier by tier.
with demand forecast information and communicates shortage risk prevention and recovery
safety stock
strategies, working collaboratively with suppliers to establish business continuity plans that
ensure adequate supply in the event of emergencies.
The Company's Conflict Minerals Procurement Policy The number of suppliers who
The Company encourages localization sourcing. It identifies material supply risks overall and Commitment Letter for Not Using Conflict Minerals signed the Commitment Letter
based on historical delivery and inventory reserve situations, actively exploring and have been communicated to for Not Using Conflict Minerals:
selecting products that meet production requirements for domestic substitution and local
Encouraging
localized
procurement
procurement from technical, commercial, production capacity, and accessibility perspectives,
and cooperating with reliable trading partners. Through these endeavors, the Company
has shortened transportation cycles and supply times, enhanced control and transparency,
thereby enhancing the competitiveness of local enterprises while improving the supply chain's
risk resistance, autonomous controllability and flexibility.
The Company maintains timely communication and efficient coordination with suppliers
through multiple ways such as email, phone, remote meetings, face-to-face discussions, etc.
To avoid price increases and ensure post-sales service quality, the Company signs strategic
Cultivating good cooperation agreements with core suppliers to ensure optimal reserves and a stable supply of Responsible Supply Chain Due Diligence Management
cooperative materials. It establishes a benign supplier competition and protection mechanism to create a The Company's various business segments have formulated the conflict minerals investigation management procedures
relationships good atmosphere for win-win cooperation and persists in joint growth with qualified suppliers to conduct responsible mineral due diligence on suppliers. Suppliers are required to truthfully fill in and respond to the
to build a sustainable supply chain ecosystem. Conflict Minerals Reporting Template (CMRT) regarding the usage and sources of relevant minerals in the delivered products,
and provide supporting documents to ensure the compliance and traceability of the procurement sources. The Company
The Company has developed differentiated plans, procedures, and key actions based on the has established a rigorous risk assessment and management framework for conflict minerals, and maps our supply chain
severity of material impacts and the supply risk level, and has implemented focused tracking by identifying risks in Conflict-Affected and High-Risk Areas (CAHRAs) and leveraging information from the supplier conflict
of high-risk and medium-risk materials to eliminate the risk of material shortages. The Supply minerals questionnaires ("Know Your Supplier" (KYS)). Each year, we formulate strategic due diligence plans and carry out
Chain Management Center coordinates and plans the necessary resources for various business supply chain due diligence. For problems detected or risks identified from the due diligence, we enforce corrective actions,
Enhancing
segments, subsidiaries, and branches through the Supply Chain Resource Coordination such as requiring suppliers to disengage from non-compliant smelters and refiners, to ensure full alignment with corresponding
emergency
management
Contact Letter to enhance emergency response. The Company constantly monitors potential laws, regulations and international conventions. Should a supplier pose significant conflict mineral risks or fail to remediate
supply chain disruption risks and strengthens supply chain risk assessment and control to identified issues, the Company will terminate or replace the supplier involved in conflict minerals. This approach ensures that
ensure that daily supplies are not affected. the Company eliminates the use, including inadvertent use, of conflict mineral materials.
Responsible Mineral Due Diligence Management Process
Identify products containing conflict minerals
Impact, Risk, and Opportunity
Management
components and corresponding suppliers.
Collect relevant information
from suppliers.
DSBJ faces a variety of supply chain risks, including quality risks, hazardous substance risks, supply risks (such
as supply interruptions and raw material shortages), financial risks (such as price increases and market changes),
compliance risks (such as violations of laws and regulations and company policies), and ESG risks (such as
Evaluate suppliers' risk Assess the sources of 3TG contained in products and their
levels. conflict minerals procurement status. labor rights and interests, occupational health and safety, business ethics and conflict minerals), among others.
The Company's internal management norms, such as the Supply Chain Management System and the Supplier
Management Processes and Standards , have fully considered supply chain risks and conducted detailed risk control
over each link in the supply chain.
Conduct conflict minerals due diligence Respond to CMRT and Each business segment of the Company has formulated and implemented the Supplier Risk Assessment Procedures
on suppliers. other questionnaires. and the Supplier Risk Management Control Procedures , etc. By virtue of tools such as the Supplier Social
Responsibility Risk Assessment Form, the Company identifies and carefully assesses relevant risks, including ESG
Suspend or terminate risks, that may arise in the supply chain every year, so as to perform an in-depth analysis of specific mitigation
Implement improvement measures for
N business relationships measures against different types of suppliers. We also develop an annual audit plan to evaluate and assess suppliers
high- and medium-risk suppliers.
with these suppliers.
for stimulating their continuous improvement, ensuring effective control of supply chain risks. For suppliers with
high risks, the Company will limit the supply quantities and stop purchasing new products, and develop alternate
suppliers. The Company continuously monitors and tracks the implementation of supplier risk management
measures and evaluates their effectiveness periodically.
suppliers that should be included in the responsible mineral due
Indicators and Targets
suppliers passed the diligence scope, with 100% of supply chain enterprises not
responsible mineral due using illegal conflict minerals.
Indicators and targets Achievement in 2025
diligence
Targets achieved
The Company experienced no failure to
No disruption to operations
complete production tasks due to supply
chain disruptions.
No incidents of child labor and forced labor
Targets achieved
among suppliers.
In 2025, Multek BU continued to conduct supplier due diligence, using the Conflict Minerals Report Template and the The ESG risks
Extended Minerals Reporting Template (CMRT/EMRT) questionnaires, which require suppliers to trace back to the in the supply The Company's Conflict Minerals Procurement
smelter level. Multek BU ensures that all products have undergone information traceability. Only when the CMRT/ chain are Policy and Commitment Letter for Not Using
Targets achieved
EMRT returned by the supplier shows that it has identified and declared all smelter information, and all smelters effectively Conflict Minerals have been communicated to
and refiners comply with RMAP, will its CMRT/EMRT report be compliant. In 2025, Multek BU collected a total of 92 managed. 100% of our suppliers.
CMRT/EMRT questionnaires. The tantalum, tin, tungsten, gold, cobalt, and mica smelter information involved in the
questionnaires is all included in the RMAP qualified smelter list issued by RMI, none of which use any illegal conflict 0 conflict minerals incidents occurred. Targets achieved
minerals.
Upholding Excellence to
Enhance Product Quality
and Competitiveness
Driven by Innovation
Governance
New quality productive forces, with innovation at their core, are the key driving force for enhancing the Company's core
competitiveness. Adhering to long-termism, DSBJ continuously improves its technological innovation system and accelerates
We formulate and implement R&D management procedures, establishing a comprehensive
the cultivation and development of new quality productive forces. The R&D departments of the Company's various BUs plan
full-lifecycle management framework. By optimizing the R&D cycle management procedures
research and development based on business needs, implement various R&D and innovation tasks at the execution level to
with continuous standardization and optimization of important nodes such as design,
drive technological breakthroughs, product development, and market deployment, and collaborate closely with production,
sampling, trial and mass production, we have enhanced our technological breakthroughs
engineering, sales, and other departments to achieve seamless end-to-end cooperation from R&D through production to
Sound R&D and productization efficiency. Furthermore, we maintain a continuous improvement
market, ensuring the advancement and commercial applicability of product development and technology research, and
Management mechanism driven by customer needs, engaging deeply in early-stage customer product
enhancing the Company's core competitiveness.
design to ensure the market, R&D, and production processes are fully aligned, thereby
achieving the closed-loop management from demand to mass production.
Strategy and Management Mechanism
Guided by its vision of "Becoming a Leading Global Intelligent Interconnection Solution Provider", DSBJ remains at the forefront The Company provides robust investment for technological innovation, specifically targeting
of market trends and industrial evolution and keeps up with the Company's strategy. By consistently scaling R&D investments, new materials, cutting-edge technologies, and advanced processes. We continuously
fortifying R&D management frameworks, and pioneering cutting-edge technology platforms, the Company has strategically explore the key technologies and cutting-edge manufacturing processes of core intelligent
pivoted its resources toward the emerging AI landscape. Across consumer electronics, new energy vehicles (NEVs), and AI interconnection devices, laying a solid foundation for serving future innovative businesses.
computing infrastructure, we foster deep technological cross-pollination and ecological synergy with global leaders, cultivating Funding for Scientific
We allocate ring-fenced funding for scientific research across varying development cycles,
robust catalysts for sustainable growth. At the same time, the Company is intensifying efforts in talent introduction and Research coupled with rigorous tracking of fund utilization and project milestones to ensure the
cultivation centered on product R&D. By fostering an organizational culture that champions innovation, we aggregate collective efficient and reasonable use of scientific research funds and the smooth progress of scientific
intelligence to ignite the powerful momentum necessary for the Company's transformative development. research projects.
R&D Innovation Management Insisting on people-oriented innovation, the Company has combined innovative management
with incentive mechanisms. We have provided R&D personnel with daily assessment incentives
The Company is dedicated to architecting a globalized R&D and manufacturing network. By precisely capturing customer needs
and technology-specific incentives and implemented equity incentive plans covering core
and the latest industry and technology trends, the R&D departments of all business segments have established an open R&D Enhanced Innovation
management personnel and technical talents, so as to encourage employees to participate in
ecosystem and a high-efficiency innovation mechanism, and built a technology innovation system covering material science, Incentives
technological innovation and to stimulate the vitality of the talent and the organization.
structural design, electronic integration, and scenario-based applications. We keep up with technology frontiers to enhance
independent innovation capabilities, seamlessly bridging the gap between basic research and industrial-scale deployment to
solidify our foundation for high-quality growth.
R&D Innovation System Build an Innovative Talent Team
Standing at the forefront of technological evolution, the Company continuously refines the R&D platforms and comprehensive Building an innovative talent team is the cornerstone of technological innovation. Leveraging the leadership of top-tier talent, the
innovation systems of each business segment and collaborates with upstream and downstream partners and well-known domestic and Company has established a global R&D team of technical experts known for their exceptional skills, extensive industry experience,
foreign scientific research institutions to jointly carry out technological innovation research. By driving industry-academia-research and strong innovation capacity. By fostering an open, inclusive, and results-driven research environment, the Company continues to
synergy and integrating global technology resources, we empower new quality productive forces to catalyze industrial advancement. strengthen its core technological R&D and independent innovation capabilities, fueling its long-term growth with continuous innovation.
Leveraging our profound R&D heritage, we have achieved breakthroughs in a number of core technologies and secured a portfolio of
advanced results and patents with independent intellectual property rights. By supporting rapid product iteration and industry-wide The Company continues to intensify its efforts to recruit high-end
upgrades with forward-looking and strategic innovative technologies, we respond to market changes quickly and flexibly, and contribute technology talents, selecting R&D personnel who align with the
to the development of the industry. Company's values and possess outstanding qualities, solid professional
expertise, and high potential, while offering rewards and career
During the reporting period, the Company and its subsidiaries, Suzhou Dongdai Electronic Technology Co., Ltd., Suzhou Yongchuang
advancement opportunities to exceptionally outstanding individuals. The
Communication Technology Co., Ltd., Suzhou Jebusen Intelligent Technology Co., Ltd., Source Photonics (Chengdu) Co., Ltd., Jiangsu
Company provides comprehensive support for R&D talents, including
Source Communications Technology Co., Ltd., Suzhou Dongyue New Energy Technology Co., Ltd., Yancheng Dongchuang Precision
targeted training and teaching for scientific research talents, regular
Manufacturing Co., Ltd., Yancheng Mutto Optronics Technology Co., Ltd., Yancheng Dongshan Precision Manufacturing Co., Ltd., MFLEX
technical training, and technical exchanges and teaching through
Yancheng Co., Ltd., Suzhou JDI Electronics Inc., and Suzhou Rf Top Electronic Communication Co., Ltd., have been recognized as "high-
internal training, seminars, etc., to help employees master innovative
tech enterprises". Yancheng Mutto Optronics Technology Co., Ltd. has additionally been recognized as a "Little Giant" enterprise and a
technologies and industry cutting-edge trends. In 2025, the training
specialized and sophisticated SME.
covered 100% of all R&D personnel. By hiring external industry experts as
the Company's R&D consultants, adopting joint development methods
to gain excellent experience, or encouraging participation in academic
conferences, we understand the latest trends and methods in the industry
to improve the technical level and R&D capabilities, thereby realizing
Innovative Thinking Training Camp of the TCTD BU
Leveraging its expertise in flexible printed circuits (FPC), the MFLEX BU has pioneered thin-film pressure sensors (flexible independent research and development of innovative core technologies.
sensors). By breaking the physical constraints of traditional rigid sensors, these bendable and foldable components find
diverse applications in healthcare, robot control, smart wearable devices (wearable health monitoring), and aerospace. In The Company vigorously encourages innovation. By stimulating the innovation enthusiasm and wisdom of all employees through
this process, MFLEX BU has established a systematic R&D capability for flexible sensors, achieving full-stack autonomous "Engineer Forum", "AI Competition" and other activities, we foster an innovative culture that encourages experimentation and tolerates
controllability from initial design, manufacturing to embedded hardware and software integration. failure throughout the Company to encourage employees to be brave in innovation based on their positions and help them maintain
innovation vitality and the best state. In 2025, all of the Company's BUs carried out different forms of engineering skills competitions to help
engineers improve their technical skills and stimulate their innovation abilities.
The integration of industry, academia, and research is an important driving force for the Company's technological innovation. The Company
actively engages in in-depth collaborations with universities and scientific research institutions to accelerate the research and application
Source Photonics R&D Center, a world-leading base for optical communication technology innovation, specializes in R&D of cutting-edge technologies, thereby driving resource integration across the industrial chain and enhancing its competitiveness. In
and design, technical breakthroughs, performance verification, and product iteration of high-speed optical interconnection 2025, the Company and its business segments strategically focused on the intersection of cutting-edge technology and industrial-scale
solutions. We provide high-bandwidth, low-power, and ultra-reliable optical interconnection solutions tailored for global AI applications. By establishing robust collaborative frameworks with prestigious institutions, including Shanghai Jiao Tong University,
computing power clusters, data center optical interconnections, and next-generation network communication customers. Our Soochow University, Nanyang Technological University, and the National University of Singapore, we have accelerated the transformation
"Technology + Platform" dual-drive system, supported by internationally advanced simulation software and full-dimensional of scientific and technological achievements into new quality productive forces.
hardware testing environment, has built several special laboratories and gathered a high-level R&D team with multi-disciplinary
intersection of optoelectronics, semiconductors, and communication systems, ensuring precise control across the entire
lifecycle from silicon design to mass production. In a testament to our excellence, Source's two core products were honored
with the "2025 Lightwave + BTR Innovation Reviews" award by Lightwave, an international authoritative optical communication
Technology Ethics
media. The Company pays attention to the ethical impact of scientific and technological activities. We strictly abide by relevant scientific and
technological ethics standards and actively advocate social responsibility values. Relying on independent innovation and guaranteeing
excellent quality, we are committed to refraining from developing or utilizing scientific technologies that pose harm to the natural
environment, human health, public safety, or ethical standards. Through the development of innovative and practical new products,
technologies, and processes, we spare our efforts to contribute positively to social progress.
With the widespread adoption of artificial intelligence applications, the
Company has developed the Guidelines for Safe Artificial Intelligence
Software Development Cycle and the AI Management Procedures ,
emphasizing ethical compliance requirements in the use of AI applications
and the management of generated data to ensure that AI outputs meet
moral standards and respect privacy rights. For the use of generative
AI products, we formulate and publish detailed usage policies, clearly
requiring employees to adhere to social norms and company policies
and strictly prohibiting the generation, replication, publication, or
dissemination of any content that may violate laws and regulations, or that
may be inappropriate, offensive, or discriminatory. "AI Empowering Safety First" Event of MFLEX BU
Protection of Intellectual Property Rights Impact, Risk, and Opportunity Management
The Company attaches great importance to intellectual property protection and strictly complies with relevant laws and To effectively address various risks, including rapid technological change, market competition, intellectual property
regulations, including the Trademark Law of the People's Republic of China, the Patent Law of the People's Republic of infringement, and shifts in policies and regulations, DSBJ closely monitors market trends, technological developments, and
China , and the Implementing Regulations of the Patent Law of the People's Republic of China . The Company has formulated policy dynamics throughout the full life cycle of its R&D projects, and strengthens forward-looking assessment of technological
management systems such as the Intellectual Property Management Procedure and the Confidentiality Agreement to trends. For certain products, the Company participates in collaborative development at the early stage of customer design to
comprehensively strengthen the creation, utilization, protection, and management of intellectual property rights, and ensure that R&D directions are closely aligned with customer needs, enabling rapid market response and reducing the risks of
conducts patent filing and protection covering the structural designs, preparation methods, and process flows related to its technical deviation and resource misallocation. Each business segment collaborates through cross-functional teams spanning
core technologies. While safeguarding its own intellectual property rights, the Company fully respects the intellectual property R&D, marketing, production, and procurement to achieve rapid information sharing and coordinated responses, systematically
rights of others, commits to avoiding infringement of third-party intellectual property rights, and conscientiously fulfills its identifying and managing key risks such as technical feasibility, market adaptability, supply chain stability, and regulatory
confidentiality obligations, particularly in technical and business cooperation with partners. Without written authorization, the compliance, and dynamically optimizing its R&D risk management strategies in response to evolving internal and external
Company does not disclose or provide experimental samples, proprietary data, or technical specifications to any third party, conditions, ensuring that risks across all R&D activities remain within controllable limits.
thereby upholding a fair competitive order and promoting the healthy development of the market.
By incorporating intellectual property risk prevention and control into R&D project management requirements, the Company
has strengthened intellectual property risk management, including patent search and intellectual property compliance review,
at the stages of R&D project establishment, technical demonstration, and achievement transformation, to prevent technology
leakage and infringement risks.
Prevention and control of intellectual property infringement risks
To address the risk of intellectual property infringement, the Company has established a mechanism for identifying
and providing early warnings of intellectual property infringement risks, and conducts comprehensive assessments
of potential infringement risks associated with the Company's existing innovative technologies. Where potential risks
are identified as significant, the Company mitigates potential patent infringement risks in R&D projects by adjusting
alternative process technologies or characterization methods. Before submitting patent applications to the National
Intellectual Property Administration, the Company conducts patent searches, and where significant similarity with
Indicators and Targets
existing patents is identified, the Company initiates upgrades to the relevant core technologies.
Indicators and targets Achievement in 2025
Targets achieved
Enhancing emergency The number of R&D personnel is 5,074, accounting for 12.93% of the total employees.
Enhanced intellectual property training management The amount of R&D investment in 2025 totaled RMB 1.432 billion, accounting for 3.57%
The Company places significant emphasis on enhancing employees' awareness of intellectual property protection. of revenue.
We conduct regular intellectual property training sessions to strengthen employees' awareness of intellectual
Targets achieved
property protection by explaining typical cases of intellectual property infringement, thereby increasing employees' Increased number of patent
awareness of confidentiality regarding the Company's key core technologies and core products. 102 patents were newly granted during the year
applications and grants
With a cumulative total of 819 valid patents granted
Quality First
Governance
Full Life Cycle Quality Management
As excellent product quality is the cornerstone of industrial development, the Company continuously strives to deliver products
of the utmost quality and reliability. The Company has established a product quality and safety working group, which is
composed of various BU quality management centers or quality departments of different business segments. This group is
During the product development phase, with detailed knowledge of customers' requirements
responsible for the product quality management work of each business segment, including formulating quality policies and
for product quality and acceptance testing, DSBJ has established an end-to-end management
objectives, and the construction, implementation, and continuous improvement of the quality management system to ensure
mechanism covering customer needs, product design, verification and confirmation, and production
that each link meets quality standards. At the same time, the Company has established a cross-departmental collaboration transfer, clarifying the quality baseline from the source and ensuring that each product meets
mechanism and works together with R&D, procurement, production, and other functional departments to ensure that the industry standards and customer requirements.
Company's products comply with applicable laws and regulations, and customer requirements.
R&D quality The Company standardizes its R&D management processes, and each business segment carries
The Company has pushed each business segment to establish a series of quality management policies in accordance with management out new product development and design in accordance with documents such as the R&D Cycle
international standards such as ISO 9001, IATF 16949, AS 9100, ISO 13485, VDA 6.3, and ISO 9004 in combination with customer Management Procedure, the R&D Management Specification, and the Design Management
audit requirements, which include the Quality Manual, the Quality Management Manual, the Incoming Material Inspection Specification , controlling key nodes throughout the new product development process to ensure the
Procedure, the Inspection Management Procedure, the Hazardous Substance Management Procedure, the Non-conforming quality of R&D and design.
Product Control Procedure, the Corrective and Preventive Action Procedure, the Supplier Quality Management Specification,
the Customer Quality Complaint Handling Procedure , etc. With these quality management policies, we have built up a high- The Company strengthens its understanding and control of customer requirements and continuously
standard quality management system for comprehensive risk prevention and control covering the whole life cycle of the optimizes its standard operating procedures (SOPs) to strictly ensure process quality in project
management through systematic and scientific approaches. From the perspectives of "people,
products, ensuring the high reliability and high consistency of products throughout their full lifecycle.
machines, materials, methods, environment, and measurement", the Company comprehensively
identifies key processes and elements in manufacturing process management, and strengthens
Strategy and Management Mechanism
process quality control through quality control workflows to ensure the reliability and consistency of
product quality.
The Company has established an intelligent, information-integrated production system centered on
data with deep interaction across multiple platforms and systems. Leveraging systems such as E-Audit,
DSBJ anchors its operations in customer needs. By integrating customer needs Production QMS, SRM, and MES, the Company comprehensively promotes intelligent quality management,
and high-standard quality requirements into every phase of the business chain, quality provides early warnings of anomalies through trend analysis, and dynamically optimizes quality
The Company's main
management
namely, from product design, R&D, procurement, and production to sales production and operation control strategies driven by data, thereby improving lean management capabilities and ensuring the
and post-sales services, DSBJ has implemented strict quality management stability, efficiency, and quality of the production process.
bases have all obtained
throughout the product lifecycle, ensuring the delivery of customer-satisfying, For major or recurring quality issues, the Company promptly initiates corrective and preventive action
high-quality products. ISO 9001 quality (CAPA) procedures, forming a closed-loop management cycle covering problem identification, root
management system cause analysis, measure implementation, and effect verification. After recording and archiving, these
The Company is relentlessly driving the digital and automated transformation
certification cases are transformed into an experience repository that feeds back into new project development,
of its production infrastructure. Our flagship smart production line clusters
enabling knowledge reuse and continuous optimization throughout the full product life cycle.
have earned prestigious national recognitions from the Ministry of Industry and
Information Technology, including the "Smart Manufacturing Demonstration
The Company requires suppliers to obtain quality management system certifications such as ISO
Factory", the "Excellence-Level Smart Factory", and the "5G Factory". Leveraging
this intelligent manufacturing system, we have achieved efficient and precise
incoming material inspection, and supplier performance management in accordance with procedural
control, ensuring superior product quality and stability with advanced cutting- documents, including the Supplier Quality Management Specification, the Raw Material Quality
edge intelligent manufacturing processes. At the same time, the Company's Supply chain Management Procedure, the Incoming Inspection Management Specification, and the Incoming
business segments are enhancing the implementation of advanced quality quality Material Inspection Procedure , ensuring product quality and safety. For further details, please refer to
management
management tools, such as T-QMS, Q-DAS, and DSQS, while pioneering the AI the chapter "Fostering Partnerships to Build a Resilient and Sustainable Supply Chain / Sustainable
technology integration and interactive innovations. By iteratively upgrading our Procurement" in this report.
quality toolkits and knowledge-sharing hubs, we are accelerating our evolution
into an enabling organization, shifting the paradigm of quality management In accordance with documents such as the Customer Complaint Handling Management Specification,
from passive response to proactive prevention. the Customer Quality Complaint Handling Procedure, and the Customer Feedback Management
Procedure , the Company has established an efficient customer quality complaint response
Customer mechanism to ensure that customer requirements are responded to promptly and clearly reflected
request and implemented across all aspects of the business chain, while maintaining high product quality
response
and delivering products that meet customer satisfaction.
Products must pass safety and reliability tests before proceeding to mass production; any products that fail to pass must
undergo continuous improvement until they meet the required standards, ensuring that products satisfy customer acceptance
Case
testing requirements. Any issues identified during the reliability testing process must be reported to the production department
for ongoing review and improvement to ensure product quality and stability. During the new product introduction stage, new
AI-empowered Intelligent Quality Inspection
materials, equipment, processes, and technologies are subject to a comprehensive assessment to identify potential quality
MFLEX BU has fundamentally integrated AI technology into its automated visual inspection (AVI) framework to risks and develop and refine corresponding countermeasures. For new or potential quality issues, the Company prioritizes
build an intelligent quality inspection system, shifting the quality management and control paradigm from "post- preventive control measures such as error-proofing, fool-proofing, and equipment automation to ensure that key quality factors
event interception" to "proactive prevention at the source". In 2025, MFLEX BU iteratively refined its AVI models are properly controlled.
and improved its deep learning of defective samples, significantly enhancing detection capabilities for complex
failure modes such as Hot bar, ACF, WB, and MIC, thereby effectively intercepting the outflow of defective products.
By optimizing and standardizing stiffener bonding templates and height-sensing configurations, it effectively Key checkpoints for material and product inspection
reduced the defect rate of double-stiffener bonding. By optimizing AVI algorithms and reporting logic, it drastically
reduced false positives and false negatives, ensuring superior inspection stability and efficiency. Furthermore, by
incorporating real-world customer complaint imagery into inspector training, MFLEX BU has synergistically enhanced
Incoming material inspection
the defect identification capabilities. Through the deep integration of AI and AVI, MFLEX BU further realized the
intelligent upgrade of quality control, laying a solid foundation for manufacturing excellence. The Company conducts quality inspections on materials during the material
incoming stage to ensure that the production materials and packaging materials
meet requirements.
Case To ensure the
effectiveness of
Process patrol and sampling inspections
Mutto Optronics' Smart Operation Practice inspections and
The Company conducts patrol inspections on the manufacturing process and regular tests at all stages,
Mutto Optronics centers its strategy on "Smart Operations" and drives a comprehensive integration of digital and
process capability analysis activities while monitoring the working process to ensure all measuring
intelligent technologies. In intelligent R&D, the Company has established a virtual design and simulation platform
that intermediate products meet the requirements during the production process. instruments
to guide R&D decisions through big data, and a collaborative R&D platform to improve R&D efficiency and quality. In
intelligent manufacturing, the introduction of advanced automated production lines enables real-time monitoring are regularly
of and intelligent scheduling for the production process, improving manufacturing efficiency and flexibility. The calibrated,
Company has also deployed automated testing equipment for online collection of key parameters, achieving Finished product inspection with critical
data analytics-driven quality prediction and rapid identification and closed-loop management of quality issues. characteristic
The Company conducts strict inspections of finished products to ensure that only
In intelligent supply chain management, Mutto Optronics optimizes inventory management through demand measuring
products meeting the qualified standard requirements can be delivered and the
forecasting while strengthening supplier collaboration, thereby ensuring the timely supply of materials and stable instruments
finished products meet the shipping requirements.
quality through a high-quality supply chain system. receiving MSA
evaluation.
Quality Inspection
Reliability testing
The Company implements reliability testing regularly to identify and intercept
In order to better prevent potential product safety and quality issues, the Company has established a product and process potential defects or risks in the products.
reliability testing process and evaluation standards to achieve full process product reliability risk management for technical
elements, product development, and mass production processes. The Company continuously improves quality standards and
inspection procedures. Each business segment inspects products in strict accordance with the requirements of the Process
Inspection Operation Management Measures and the Product Inspection Control Procedures throughout the entire quality
management process, including raw material inspection, intermediate product inspection, packaging material inspection, and
product inspection. Through real-time trend analysis and monitoring of product inspection data, we ensure that strict quality
Product Recall and Non-conforming Product Management
control is carried out at every stage from the entry of raw materials to the exit of products.
For internal testing, the Company has set up multiple laboratories equipped with advanced research and development
equipment and testing instruments to conduct mechanical, cleanliness, solvent resistance, impact resistance, and salt spray The Company's business segments have established the Product Recall Procedures and the Non-conforming Product Control
tests, etc., to provide long-term services for new product research and development, mass production product quality control, Procedures to standardize the management procedures for non-conforming products and clarify the responsible departments
and after-sales service. For external testing, the Company has established long-term cooperative relationships with authoritative for each process to strictly control quality. If any defective product causes a quality accident, the Company will immediately
and certified third-party laboratories. The Company has comprehensively considered its qualification certification (such as CMA, take damage control measures to identify the cause of the defect and eliminate the problem, and carry out review work in a
CNAS, etc.), testing capabilities, the advancement of testing equipment, service quality, and industry reputation when selecting timely manner to make continuous improvement from both technical and management aspects to prevent the recurrence of
the cooperative laboratories. For items that cannot be accurately tested in-house or products that require test reports issued by quality incidents. During the reporting period, the Company experienced no product recalls, and the product recall rate was 0%.
authoritative institutions, the Company commissions third-party laboratories for testing.
Quality Culture Construction Product Chemical Safety Restricted and Prohibited Substance Commitment
The Company continues to strengthen its quality culture The Company has established a chemical safety working
development by implementing annual quality training group responsible for advancing chemical safety management
Avoid using, producing, and selling products containing restricted and prohibited substances, ensuring
programs for all employees. We organize and carry out matters, including chemical risk identification, hazardous
differentiated quality training for staff in different positions, substance control, and substitution. The Company has also
and customer specifications.
with content covering quality philosophy, quality control established a full life cycle management mechanism for
methods, and corrective action implementation, etc., to chemicals covering risk assessment, R&D and design, raw
enhance all employees' awareness and competencies material procurement, and production processes, to drive the Establish and maintain a hazardous substances control system to eliminate the potential use and pollution
in quality management. Concurrently, we carry out formulation of chemical policies and targets as well as their of hazardous substances in our product production process.
diversified quality improvement initiatives and routinely implementation, performance monitoring, and continuous
disseminate quality management best practices in the improvement, thereby strictly controlling hazardous
Company. Through various quality management promotion chemical substances present in raw materials, products, Continuously audit and improve the effectiveness of hazardous substance management activities.
campaigns such as quality months, Quality Control Circles and manufacturing processes. In addition, the Company
(QCC), six sigma activities, etc., the Company has cultivated has set chemical safety-related targets and incorporates the
a cultural atmosphere of "everyone cares about high achievement of these targets as an important component of
Communicate the requirements for restricted and prohibited substances to employees and suppliers in a
quality, everyone creates high quality, and everyone enjoys management performance evaluation, so as to minimize the
timely manner to jointly achieve hazardous substance control goals.
high quality". risks posed by chemical substances to human health and the
environment in the course of the Company's production and
operations.
Quality training covers
Improvement of Hazardous Substance Control List
Commitment and Declaration
The Company formulates and implements chemical management
In accordance with laws and regulations, industry standards, and international conventions on restricted and prohibited
substances such as RoHS and REACH, the Company's business segments, combined with hazardous substance control
policies in strict compliance with the laws and regulations specifications and requirements received from clients, have formulated detailed documents that specify the restricted and
applicable to its operating locations and exporting countries prohibited chemical substances in use and manufacturing process, such as the Hazardous Substance Management List and
and regions, including but not limited to the EU RoHS Directive the Hazardous Substance Control List , to ensure that all hazardous substances in all relevant products are below the limits
MFLEX BU implemented the "OCAP on the Wall" (including extended directives), the EU REACH Directive and its specified in laws, regulations and customer specifications. Concurrently, in response to evolving domestic and international
initiative to visualize the control process. By annexes, the Candidate List of Substances of Very High Concern environmental mandates and shifts in customer requirements, we maintain a dynamic update for our hazardous substance
organizing Quality Month and i-QCC activities and the List of Restricted Substances, the Requirements for control lists and chemical management policies (including periodic recalibration of restricted substances, concentration
and launching the QMS Micro-learning Hub, the Restriction of Hazardous Substances in Electrical and Electronic thresholds, and regulatory scopes) to ensure our operations remain seamlessly and effectively aligned with the latest laws and
BU published 12 "Knowledge Capsules" in 2025, Products, the International Electrotechnical Commission's regulations, standards, guidelines, and stakeholder expectations.
jointly fostering a robust engineer culture. Standard on Material Declaration for Products of and for the
Electrotechnical Industry (IEC 62474), the EU Persistent Organic The Company conducts hazardous substance compliance investigations and third-party testing on products to ensure that the
Pollutants Regulation (POPs), the US Toxic Substances Control products strictly adhere to regulatory mandates and customer-specific thresholds. Our comprehensive testing protocols cover,
Suzhou Dongyue Plant of the P-Manufacturing BU but are not limited to, heavy metals (lead, cadmium, mercury, hexavalent chromium), bromine compounds (polybrominated
Act (TSCA), the PFAS Master List of the US Environmental
introduced a four-step training to help front-line biphenyls, polybrominated diphenyl ethers, hexabromocyclododecane), chlorine compounds, phthalates (DEHP, BBP, DBP,
Protection Agency, and the Norwegian Prohibition on
supervisors improve employee quality training DIBP), alongside other restricted substances of great concern. All business segments have established elimination, replacement,
Hazardous Substances in Consumer Products (PoHS) . We
efficiency. This plant encourages employees to or reduction plans for prohibited and restricted chemicals in our hazardous substance control lists, strictly prohibiting the re-
promise that all contents of hazardous substances in raw
become internal trainers using easy-to-understand importation of phased-out substances into any production and non-production stage.
materials, parts, assemblies and finished products in the
cases to explain theoretical points, so as to
Company have met the requirements of RoHS, REACH
efficiently accumulate knowledge and experience
and other HSF laws and regulations as well as customer
within the team.
specifications. We also carry out investigations and third-
party testing for hazardous substance compliance according
RoHS POPs IEC 62474
to the relevant standards, so as to ensure that the products Customer
produced and manufactured by us are all in compliance Hazardous Hazardous
REACH TSCA VOCs
with the requirements. We are committed to reducing and Substance Substance
phasing out hazardous chemicals by proactively seeking safer REACH SVHC GADSL CA65 Control Control List
alternatives to eliminate, minimize, or control the impacts of Requirements
chemicals as much as possible. REACH XVII PFAS TPCH
Chemical Substance Control Throughout the Product Lifecycle From the perspectives of personnel, machinery (equipment and molds), and raw materials, we
systematically identify and assess hazardous substance risks across all production phases and implement
To ensure chemical safety across both product compositions and manufacturing processes, DSBJ's business segments have formulated differentiated control measures based on risk categorization, with targeted mitigation plans rigorously
a series of institutional frameworks, including the Hazardous Substance Management Norms, the Standards for Product Containing executed. We conduct rigorous internal testing on semi-finished and finished goods to verify that the entire
Prohibited Substances and Management Substance, the HSF Management Manual, the Chemical Management Procedures, the Technical manufacturing process remains free from cross-contamination. Furthermore, in response to evolving
Manufacturing
Standards for Restricted Use of Hazardous Substances, and the Hazardous Substance Risk Management Procedures , and established end-customer mandates and upgraded control requirements of laws and regulations, we concurrently
Process
an end-to-end hazardous substances control system that spans the entire product lifecycle. By leveraging information systems,
Management drive the recalibration of in-process chemical controls and implement the phased elimination of high-risk
we perform continuous monitoring and validation, maintaining detailed records and traceability of each product batch to ensure substances, the formula optimization, and the strategic integration of safer alternative materials.
unwavering compliance with applicable laws, customer requirements, and regulatory policies. We continuously track domestic and
overseas regulatory trends and customer specification updates. When there are significant adjustments to relevant laws and regulations
The shipping management follows strict management specifications and procedures. The Company has
or company policies, we promptly recalibrate our internal standards and control lists and synchronize these updates across our entire
confirmed that the components and materials constituting the products are in line with the Hazardous
supply chain. Suppliers are required to re-complete hazardous substance assessment or declaration documents according to the latest
Substance Control List under shipping inspection items or customer-specific requirements. We entrust
standards and undergo re-assessments aligned with the latest standards.
third-party testing institutions to conduct inspections on hazardous substances under customer mandates
The Company's business segments have incorporated hazardous substance control to ensure that the hazardous substances contained are below the limits required by laws, regulations,
Delivery
requirements into internal audits, which are conducted annually according to internal Management and customer specifications. Qualified products should be labeled with environmental compliance
audit plans to prevent the misuse, mixing, and contamination of prohibited and restricted MFLEX, Multek, Dongshan labels or attached with the necessary test reports and conformity declarations, etc., according to relevant
substances. We regularly conduct IECQ QC080000 hazardous substance management system Sheet Metal, Mutto requirements.
certification to ensure the continued effective operation of the management system. Optronics, Suzhou
Dongyue, Yancheng
To effectively improve the chemical management capabilities of employees in various
Dongchuang, etc., have
operating locations, the Company routinely conducts chemical safety training, including
all passed
basic knowledge of RoHS and other laws and regulations and customer-related requirements IECQ QC Chemical Phase-out
training, IECQ QC080000 hazardous substance process management training, hazardous 080000 hazardous
substance incoming material management process training, and hazardous substance substance process For chemicals prohibited or restricted in the chemical substance control list, the Company, under the long-term goal of gradually
equipment management implementation training. In addition, the Company actively management system phasing out chemicals of concern, explores improvement opportunities in the management of restricted substances by continuously
maintains close communication with suppliers and partners, providing hazardous substance tracking domestic and international legal and regulatory dynamics, and benchmarking the latest standard requirements of mainstream
certification
management training to suppliers to ensure that they understand and comply with relevant customers. Moreover, the Company also promotes various business segments to formulate advanced hazardous substance phase-
standards and requirements. out plans, actively carrying out chemical reduction and substitution efforts and strictly prohibiting the re-importation of phased-out
substances into any production and non-production stage.
By taking environmental and health standards as important references for product design and
development, the Company reviews new products according to technical drawings, inspection Yancheng Dongchuang's Product Hazardous Substance Reduction Plan
benchmarks, customer HSF mandates, and HSF laws and regulations. Under the guidance of the RoHS
Design Control Procedures , we strictly assess the prohibited and restricted chemical substances of Material Categories Hazardous substance management targets Permitted concentration
Design and new products, enforcing a strict prohibition on the Company's Tier 1 hazardous substances for all raw
materials at the conceptual stage. Furthermore, every material batch must be accompanied by valid Mercury and mercury compounds Non-detectable
R&D
chemical verification (e.g., RoHS, REACH), with third-party laboratory reports concurrently required to Hexavalent chromium and its compounds Non-detectable
ensure full-spectrum compliance. Polybrominated Biphenyls (PBB) Non-detectable
Raw materials and Polybrominated diphenyl ethers (PBDE) Non-detectable
We have institutionalized a rigorous supplier hazardous substance assessment mechanism, cascading
products Benzyl butyl phthalate (BBP) Non-detectable
our HSF mandates to the furthest reaches of the upstream supply chain. This framework integrates
mandatory incoming inspections for all raw and auxiliary materials with strict compliance verification Dibutyl phthalate (DBP) Non-detectable
of hazardous substances. On an annual basis, suppliers are required to submit declaration reports Diisobutyl phthalate (DIBP) Non-detectable
(e.g., the Hazardous Substance Assessment & Declaration Report, the Hazardous Substance Non-Use Bis(2-ethylhexyl) phthalate (DEHP) Non-detectable
Guarantees, the Environmental Compliance Declarations, and the REACH Substances of Very High
Concern Disclosures ) alongside independent third-party test reports (e.g., RoHS, REACH). Only chemicals Ink Lead (Pb) Non-detectable
and materials that successfully navigate our compliance audit are permitted for production use.
Metal Cadmium and its compounds Non-detectable
Green JDI Electronics is dedicated to improving supplier hazardous substance management-related CCL/PP/Inks/
Procurement systems for independently developed products. In 2025, JDI Electronics overhauled its regulatory Important chemicals
framework by introducing the Environmental Hazardous Substance Control Rules and the Organic halogen compounds (only bromine Halogen content 93%
and products for
Hazardous Substance Control Operation Rules while updating its Green Procurement Management and chlorine) Halogen-free 7%
the manufacturing
Manual. Product environment management (hazardous substance management) reviews were
process
implemented for suppliers, with 40 product environment management audits completed during
the reporting period. All packaging Cadmium, lead, mercury, hexavalent Cd + Pb + Hg + Cr (VI) < 100ppm, and Cd < 5ppm Pb,
materials chromium Hg, Cr (VI): non-detectable
Note: The allowable concentrations of hazardous substances for the above products are scheduled to be achieved in stages from 2025 to 2026.
Case Professional Services
Source Photonics Promotes Halogen-Free Alternatives
Traditional halogenated compounds (such as brominated flame retardants) may release highly toxic substances
such as dioxins when burned or under high temperatures, which are difficult to degrade and will accumulate in the
Customer Relationship Management
environment for a long time. By embracing Halogen-Free (HF) design, we effectively mitigate potential toxic risks
to soil, water, and air during product disposal, recycling, or incidental combustion. This proactive shift not only Guided by a customer-centric approach, DSBJ, based on an accurate understanding of customer needs, strives to provide
satisfies the stringent requirements of environmental mandates like RoHS but also underscores our commitment to customers with comprehensive, one-stop, and technologically advanced solutions to meet their customized requirements. We
ecological stewardship. All products designed and developed by Source Photonics are fully compliant with the EU continuously improve the customer service system to ensure quick responses and efficient handling of customer requests by
RoHS Directive, strictly limiting the use of hazardous substances such as lead, mercury and cadmium and adhering virtue of comprehensive process management, cross-departmental collaboration mechanisms, and digital platform support,
to REACH regulations regarding the disclosure and control of substances of very high concern. Furthermore, Source thereby establishing a good and long-term relationship with customers. During the reporting period, all business segments
Photonics steadfastly transitions to halogen-free PCB laminates to curtail the use of halogenated compounds such as received annual supplier service awards from customers.
brominated flame retardants, so as to safeguard soil and water resources from contamination risks.
Quality Service
Impact, Risk, and Opportunity Management The Company is steadfastly pivoting its service model from "reactive" to "proactive". Through regular interaction with
customers, we have gained granular insights into evolving customer demands. We have established a robust, end-to-end service
During the quality risk assessment process, DSBJ systematically identifies multiple potential risks, including design/R&D monitoring framework coupled with a closed-loop feedback mechanism, enabling the preemptive identification of potential
risks, raw material/supply chain risks, production/process risks, hazardous substance risks, and regulatory compliance risks. issues and timely intervention. Through professional and high-efficiency services, we continue to create value for our clients
With continuously strengthened quality risk management, the Company promotes all business segments to establish internal and foster enduring partnerships built on mutual trust and shared growth.
institutional frameworks such as the Risk Management Rules for Quality Management System Process and the Organizational
Environment and Risk Control Procedure , clearly defining the processes of and requirements for quality risk identification,
analysis, evaluation, mitigation, and monitoring. Through various risk management tools, such as Advanced Product Quality
Planning (APQP), Measurement System Analysis (MSA), In-Process Quality Control (IPQC), Statistical Process Control (SPC),
Failure Mode and Effects Analysis (FMEA), Control Plans (CP), and Production Part Approval Process (PPAP) and continuous
Improving Service System
iteration of risk analysis models, we have formulated effective control measures for different levels of quality risks from the
design source, strictly controlling potential quality risks throughout the product lifecycle. To ensure the effective operation Each business segment has formulated and improved institutional frameworks such as the Control Procedures for Processes
of the quality system, the Company has established a comprehensive quality audit mechanism, and encouraged all business Related to Customers and the Customer Satisfaction Management Procedures , continuously improving the full-process
segments to formulate the 2025 audit plan, including internal quality audits, third-party system certification audits, and service system covering pre-sale, in-sale, and after-sale stages, and promoting the standardization and efficiency of service
customer audit inspections. These initiatives can help us identify potential issues and non-conformity in a timely and accurate processes. We accelerate the processing of orders and related information through automation, artificial intelligence, and other
manner, ensuring the effectiveness of the quality management system. technologies, improving the efficiency and accuracy of customer service.
By deeply integrating automated intelligent production with AI technology and building a big data analysis platform, the
Company realizes intelligent analysis and early warning of quality risks and drives corrective measures to improve risk
management effectiveness, realizing continuous and stable improvement in production efficiency and product yield. Focusing
on root cause analysis of defects and intelligent early warning of processes, we build a risk-forward prevention and control
system, where we monitor key production nodes in real time through data-driven and intelligent means to achieve early Facilitating Communication Channels
detection and handling of quality problems, thereby guaranteeing our product delivery quality.
We communicate with customers based on their different communication needs through multiple channels such as emails,
In addition, the Company regularly conducts the identification, assessment, and control of hazardous substance risks based
phone calls, video conferences, chat software and offline visits, and maintain proactive communication with customers through
on the overall risk management normative framework and documents such as the Hazardous Substance Risk Management
regular customer visits to gather their opinions and feedback on the Company and our products, to promptly address any issues
Procedures and the Supplier Hazardous Substance Management Procedures , in order to safeguard product quality and safety.
raised by customers.
Indicators and Targets
Indicators and targets Achievement in 2025 Professional Service Support
No major quality incidents Targets achieved Through enhanced service awareness and professional skills training, we elevate our professional service capabilities. For
example, MFLEX Electronics established customer reception offices by region, implementing 24-hour service support through a
structure of "dedicated personnel stationed at specific points + flexible personnel". Suzhou Dongyue set up an exclusive service
No customer complaints about hazardous substances Targets achieved team for its key customers, which provided one-stop and comprehensive services covering early project docking, product
customization development and continuous tracking after mass production delivery.
Zero incidents of supplier incoming materials exceeding HSF standards Targets achieved
Customer Satisfaction Management
The customer service team at Dongyue Body Parts Plant of the P-Manufacturing BU has institutionalized an early
involvement strategy. By leveraging the existing sound problem management and analysis tools, the team has The Company promotes all business segments to establish an institutional framework composed of the Customer Satisfaction
drawn customer risk radar charts and implemented SLC (Simple, Lean, and Creative) error-proofing and quality Management Procedures, the Service Delivery and Customer Satisfaction Management Procedures, and the Customer Satisfaction
gate control mechanisms to systematically preempt operational risks. The team proactively intervenes during the Measurement Management Specification , etc. We conduct regular customer satisfaction surveys across different dimensions
conceptual design or preliminary 3D data phases to provide comprehensive DFM (Design for Manufacturing) reports such as product quality, delivery time, problem handling efficiency and technical support, and make systematic customer follow-
and continuously pushes the improvement of customer-focused issues, enhancing the transparency of services and ups based on findings from these surveys, analyzing causes in depth and formulating improvement measures. Every year, we
improving customers' satisfaction and trust in services. In 2025, these front-end initiatives spanned 236 projects and implement supervision through internal audits and other means to continuously enhance product and service quality.
MFLEX's customer satisfaction rate: Multek's customer satisfaction rate: TCTD BU's customer satisfaction rate:
DSG is accelerating its digital customer service roadmap by constructing an intelligent end-to-end processing P-Manufacturing BU's customer satisfaction rate: Source Photonics BU's customer satisfaction score:
ecosystem and an AI-powered chatbot platform. By harnessing Artificial Intelligence, DSG has drastically enhanced 94%-98% 4.36 (out of 5)
data accuracy, timeliness, and overall customer service efficiency and empowered front-line personnel through on-
demand micro-learning of business knowledge and the crystallization of standardized solutions for recurring client
Responsible Marketing
queries. This synergy between human expertise and machine intelligence not only ensures high-precision responses
and shortened problem response time but also significantly improves the overall customer satisfaction.
Adhering to a scientific, rigorous, and responsible marketing philosophy, DSBJ strictly complies with applicable laws and
regulations and the policy requirements of its operating locations, including the Law of the People's Republic of China on
Customer Request Response the Protection of Consumer Rights and Interests , the Anti-Unfair Competition Law of the People's Republic of China , the
Advertising Law of the People's Republic of China , and the Personal Information Protection Law of the People's Republic of
The Company values customers' opinions and feedback and drives various business segments to improve their customer China . The Company drives its various business segments to formulate a series of policies and specifications, including the
complaint management. The Company has formulated a series of institutional documents, such as the Customer Complaint Sales Management Policy, the Market Development Management Specification, and the Project Operations Management
Handling Management Specification, the Customer Complaint Handling Control Procedures, and the Handling of Escalated Specification , ensuring that products are promoted in an ethical, scientific, and objective manner.
Problems and Internal Control Management Mechanisms to establish an efficient response and processing mechanism. For
customer feedback, we have carried out an analysis and made active improvements to ensure that our solution can meet the
requirements of the customers. Marketing Compliance Management
The Company continues to improve the responsible marketing compliance management system and clarifies marketing
Customer Complaint Handling Process
compliance responsibilities and processes. With strict adherence to anti-unfair competition and anti-monopoly requirements
and relevant laws and regulations in the place of operation, as well as the Company's code of ethics, commercial bribery, unfair
Timely receipt and processing Exception investigation Improvement tracking competition and other illegal means are strictly prohibited for marketing activities, and any violations in marketing activities
Customers can file complaints The Company will investigate By systematically analyzing root should be promptly addressed.
or provide feedback through the defective products and re- causes, the Company takes cor- The Company has established a mechanism for controlling marketing content at the source, continuously improving the
multiple channels. The Com- lated matters based on custom- rective and preventive measures standard processes for generating and reviewing product information to ensure that all information is verified and consistent
pany will promptly handle cus- er feedback, formulate counter- and tracks the implementation and accurate across all stages. The Company has also established a multi-party review mechanism whereby all externally
tomer complaints and maintain measures, and provide timely effect for verification. Moreover, released product marketing materials, including those involving marketing communications, are subject to rigorous review
detailed records of customer feedback to customers. we also update standardized and approval by multiple departments, including R&D, quality, legal, and marketing, ensuring that all marketing information
complaints and solutions. documents in a timely manner meets the requirements of accuracy, clarity, and regulatory compliance, and that any false, exaggerated, or misleading content
to promote problem-solving is avoided. With regard to responsible marketing conduct among employees, the Company strengthens process audit and
and experience consolidation. supervision, for example by monitoring and managing customer communication emails and correspondence, to prevent
marketing risks.
Responsible Marketing Capacity Building
Customer complaint response rate is Customer complaint resolution rate is
The Company drives its various business segments to formulate annual responsible marketing training plans, providing
communication, and business ethics, to ensure that employees are aware of and strictly comply with the Company's sales
policies and convey product information in an ethical, scientific, and accurate manner. The Company also encourages
marketing personnel to participate in projects from the early stages of product development, enabling them to develop a
Note: The statistical scope does not cover the Source Photonics BU. thorough understanding of the products and avoiding any inaccurate transmission of product information.
Embracing Eco-Efficiency
to Accelerate a Clean and
Low-Carbon Production
System
Environmental Management
DSBJ integrates the concept of green development into its operations to minimize the impact on the environment while
enhancing the Company's competitiveness, so as to achieve a win-win situation between economic benefits and environmental Environmental Risk Prevention and Control
protection.
In accordance with the requirements of ISO 14001, the Company continuously improves its environmental risk management
and control mechanism, actively promotes environmental aspect assessments and hazard identification inspections at key
facilities, and develops a register of significant environmental aspects, identifying the environmental aspects associated with
Environmental management system its activities, products, and services that it can control or influence, and monitoring and managing their environmental impacts
The Company strictly complies with environmental protection laws and regulations, including the Environmental Protection on an ongoing basis from a life cycle perspective. The Company maintains continuous environmental monitoring, promptly
Law of the People's Republic of China , the Air Pollution Prevention and Control Law of the People's Republic of China , the discloses environmental monitoring results, and accepts inspection by regulatory authorities and public oversight.
Energy Conservation Law of the People's Republic of China , the Water Pollution Prevention and Control Law of the People's The Company empowers its production and operation entities to bolster environmental emergency management. By
Republic of China , and the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution formulating targeted emergency plans for sudden environmental incidents and conducting emergency drills according to actual
by Solid Wastes , and continuously improves its environmental management system in accordance with standards such as conditions, we have enhanced our response capabilities to environmental incidents, ensuring that any potential environmental
ISO 14001 and ISO 50001. The Company has established an EHS working group composed of employees from the Company's impact is effectively mitigated as much as possible.
headquarters and the EHS departments of each business unit, responsible for coordinating, advancing, and overseeing the
formulation and implementation of EHS plans, targets, and action plans across all business segments. The EHS management
system achieves 100% coverage of all relevant business segments. During the reporting period, the Company's environmental
management system operated in a stable and effective manner; the Company experienced no environmental pollution Environmental Audit
incidents and received no major administrative penalties in relation to environmental matters.
DSBJ has established an internal EHS audit mechanism to conduct regular environmental audits across all production units.
The Company has formulated a series of policies and specifications, including the EHS Management Policy and the EHS System
The audit scope primarily covers, among others, EHS compliance, the operation status of pollutant treatment facilities,
Management Specification , covering the Group headquarters and all business segments. Based on operational development
discharge of wastewater, waste gas, and solid waste, waste storage and disposal practices, storage and usage of hazardous
needs, existing environmental management capabilities, and the projected benefits of technological facility upgrades,
chemicals, environmental hazard investigations, emergency response plans and emergency drills. The auditing methods
the Company has established environmental management targets spanning environmental compliance, air emissions
include headquarters audits (quarterly) and strict self-inspection by subordinate enterprises. In addition, all operational bases
management, waste management, energy management, water resource management, and greenhouse gas reduction. These
regularly cooperate with regulatory authorities and external stakeholders to carry out external environmental audits to ensure
targets are broken down and assigned to relevant departments and linked to management performance appraisals, comprising
the applicability and effectiveness of the environmental management system. The Company sets rectification deadlines based
veto items, regular assessment items, and bonus items. For specific targets, please refer to the relevant thematic chapters of
on the severity level of audit problems and has arranged a dedicated department to continuously track the implementation of
this report.
rectification to ensure that rectification measures are implemented effectively.
Total environmental investment for The Company's main production and operation entities have
the year amounted to all passed the Environmental Protection Training
ISO 14001 environmental management system certification
MFLEX Suzhou, MFLEX Yancheng, Yancheng Dongshan, Multek variety of formats to study environmental laws and regulations, industry standards and specifications, internal policies, and
RMB million
China Ltd., Multek Industries have passed the practical environmental management skills, continuously enhancing employees' environmental awareness and professional
clean production audit competence. During the reporting period, environmental protection training achieved 100% coverage of the Company's
principal operating bases.
MFLEX Suzhou has been awarded the
title of National Green Factory
Multek Industries, JDI Electronics, and the Sheet Metal Plant of
DSBJ have been awarded the
title of Provincial Green Factory
Source Photonics Chengdu Branch has been awarded the title of
Sichuan Environmental Integrity Enterprise (Grade A,
Green Label)
Addressing Climate Change
Impact Potential
Category Risk / Opportunity Description Response Measures
Governance
Cycle Financial Impact
Responses to policy changes Medium-
Policy and may lead to increased costs term Operating
DSBJ establishes a sound governance structure to continuously improve the identification, assessment, management, and
regulatory risks and strengthened operational Long- costs Proactively connect with local pol-
disclosure of climate risks and opportunities. The Board of Directors is responsible for assessing climate-related risks and icy authorities, to research, follow
constraints. term
opportunities; paying attention to their potential impact on the Company's strategy, operations, and financial status; reviewing up, and promote policy changes
and approving climate-related plans, goals, and response plans; and supervising their implementation. The EHS working in a timely manner to strengthen
group is responsible for organizing climate risk and opportunity identification, scenario analysis, and materiality assessment; compliance management.
Due to continuously increased
formulating strategies, goals, and implementation plans to address climate change; and promoting the practice of relevant customer demands for low-car- Incorporate climate change respons-
work through closed-loop management. This working group also regularly collects and tracks climate change-related data and bon products and green supply es into corporate strategy and proac-
targets progress. chains, the layout of green in- tively deploy low-carbon technology
Transition risk research and development, low-car-
dustries and technologies will
enhance the competitiveness bon product development and indus-
Medium- Operating try layout by actively introducing new
Market and of the Company's products.
term income technologies, new processes and
Strategy and Management Mechanism
technological However, since the low-car-
Long- Operating new materials to meet customer
risks bon transformation requires
term costs demands for low-carbon solutions,
significant technological inno-
vation and process equipment thereby enhancing market compet-
upgrades, we may need to itiveness.
After fully analyzing the risks and opportunities brought by climate change, DSBJ has integrated the topic of addressing climate
invest in the research and de-
change into its corporate strategic decision-making. We incorporate green and low-carbon requirements throughout the entire Formulate carbon reduction tar-
velopment and application of
project lifecycle - from planning and construction to operation - while promoting green transformation to strengthen climate gets with a clarified development
low-carbon technologies.
path under the “dual-carbon”
resilience.
goal, and continuously promote
energy conservation and emission
reduction by means of manage-
Through low-carbon technol-
ment-driven energy conservation,
ogy R&D and green product
Impact Potential Financial Medium- technical energy conservation,
Category Risk / Opportunity Description Response Measures development, new product
Cycle Impact Products and term Operating the use of photovoltaics, and the
directions and solutions are
services Long- income purchase of green electricity; ad-
created to enhance product
term vocate green purchase.
Extreme weather events triggered by cli- competitiveness and explore
Operating
mate change (such as floods, typhoons, Short-term Strengthen the identification new growth space.
income Climate
high temperatures, etc.) may cause direct Medium- and management of physical
Acute risk Operating costs opportunities
damage to DSBJ's assets and production and-long- climate risks, improve emer-
Value of fixed
facilities, which will affect normal pro- term gency response plans, and
Physical assets
duction and operations. ensure business continuity. Increased investment in low-
risk Tap into emission reduction poten-
carbon technology R&D can Medium-
Optimize supply chain layout tial and reduce energy consump-
Resource improve energy utilization effi- term Operating
to reduce dependence on tion costs by optimizing the energy
Rising temperatures and water resource efficiency ciency, reduce production costs Long- costs
Chronic high-risk regions. structure and strengthening energy
risks may affect supply chain stability Long-term Operating costs and enhance market competi- term
risk management.
and increase operating costs. tiveness.
Clean Technology
Opportunities Deepening the Layout of New Energy Business Case
DSBJ continues to solidify its strategic footprint within the global
Green Technology Solutions for Optical Module Products
automotive supply chain. By offering global smart and new
energy vehicle clients with a diversified portfolio composed of Emphasizing the carbon footprint management of the entire product life cycle, Source Photonics has manufactured
Green Industry Layout electronic circuits, automotive display panels and functional eco-friendly optical modules with high bandwidth, low energy consumption, and extended lifespan, contributing to
structural components, and integrated, comprehensive solutions, the green transformation of computing power infrastructure.
Upholding the concept of green development, we actively expand the globalization of new energy-related
DSBJ has integrated clean technology businesses. The acquisition of the GMD Group in France marks a
innovation into the Company's strategies. We pivotal expansion of our industrial layout within the core European
proactively lay out our presence in areas market. Simultaneously, by leveraging our domestic and overseas Achieving a maximum energy consumption of 30W in design
including smart cars, artificial intelligence, production hubs in Suzhou, Yancheng, and Mexico, we have
a n d a d va n ce d te l e co m m u n i cat i o n s , bolstered our capacity synergy and localized delivery capabilities.
maintaining increased investment in clean This strengthened supply chain resilience enables us to provide The adoption of optimized process nodes for DSP chips has yielded a 14% reduction in single-
technology and innovation research and global smart automotive clients with more competitive products chip energy consumption, while the dual-DSP architecture contributes a further 9% saving in total
development, and expanded application and solutions, helping customers achieve high-quality growth. power usage. Additionally, enhanced thermal conduction management, improves the switch cooling
scope of clean technologies, in order to efficiency, indirectly curbs data center PUE, and the optimized DC-DC component selection further
stride confidently toward a new era of decreases the overall energy consumption.
green and high-quality development.
A 50% reduction in optical cables and fiber splicing nodes
Optical Communication Empowering Green Computing Power Source Photonics pioneered the industry's first ultra-integrated 10G*16 CWDM solution, utilizing
circulators for transceiver isolation. This breakthrough optimizes chip bandwidth to maintain total
In 2025, the Company's strategic acquisition of Source Photonics
module energy consumption under 11.5W and doubles the transmission rate within the original form
marked our official entry into the optical communication sector,
factor through highly integrated structural design.
significantly enhancing our product matrix for AI computing
infrastructure. This acquisition represents a key strategic measure
in seizing clean technology opportunities and advancing green Boosting the energy efficiency ratio through technological innovation
data infrastructure. As a world-leading supplier of optical
components, Source Photonics provides high-speed optical By adopting single-wavelength 200G technology, Source Photonics has reduced the number of chip
modules tailored for low-energy, high-computing scenarios such devices under the same bandwidth, effectively lowering module operating energy consumption and
as AI data centers and 5G networks. Compared with traditional boosting the energy efficiency ratio. The refined energy efficiency scheduling for "sleep" and "wake-
electrical interconnects, the high-speed optical module solutions up" states prevents full-power operation during idle periods, significantly saving data center cooling
significantly reduce energy consumption during data transmission, and electricity consumption. Additionally, the simplified network architecture sourcing from self-
effectively catalyzing the transition toward a sustainable green sensing capabilities and the real-time information carried by "pilot tone" functionalities have allowed
digital economy. the network management system to accurately understand the health status of the modules, enabling
extension of equipment lifespans and precise operations and maintenance to reduce the cumulative
carbon footprint.
Dual Improvement in Energy Efficiency and Reliability
By adopting advanced process technology and novel thermal interface materials, Source Photonics
has slashed total energy consumption by 10% at a high speed of 800G, curbing the data center PUE.
Clean Technology Innovation Combined with low-loss multiplexing technology to enhance receiver sensitivity, Source Photonics has
While expanding into the green industry, the Company is also committed optimized the entire optical link's energy profile. The overall service life of optical module products is
to providing more environmentally friendly, high-quality products. By increased by 18.4%, which is evidenced by extending the mean time between failures (MTBF) from 1.63
increasing the R&D and promotion of clean technologies, the Company million hours to 1.92 million hours.
actively applies new materials, new equipment, new processes and new
technologies to provide more environmentally friendly solutions for the
industry.
Low Carbon Operations
Energy Management
With the continuous refinement of the energy management system,
Carbon Management
the Company systematically drives each business segment to fortify its
In active response to the national "dual carbon" initiative, the Company steadily drives the formulation of carbon neutrality MFLEX, Multek, JDI Electronics,
energy governance architectures and define energy management target
targets and pathway planning, and orderly pushes major operational sites to carry out ISO 14064 greenhouse gas verification Mutto Optronics, and the Sheet
roadmaps. We encourage energy conservation from three perspectives,
and product carbon footprint certification, solidifying the data foundation and scientific support for carbon management. At Metal Plant of DSBJ have all passed
namely, management-driven energy conservation, technological energy
the same time, some of the Company's operational sites have officially established Science Based Targets (SBTi), clarifying the conservation, and energy structure optimization, in order to achieve ISO 50001 energy
net-zero emissions path for the entire value chain, and implementing carbon offsetting with market-based carbon reduction low-carbon operations. To ensure the effective operation of the energy management system
tools such as purchasing green certificates, in order to actively integrate into the global climate governance system and enhance management system, we conduct recurring internal and external energy certification
green competitiveness. audits and actively pursue energy management system certification across
all major operational sites to elevate our energy stewardship.
MFLEX Suzhou was honored as an enterprise with outstanding achievements in the construction
The Company drives all BUs to formulate a series of institutional frameworks such as the Energy
of zero-carbon (near-zero carbon) factories in Suzhou in 2025 Management Manual and the Energy Management Procedures , establishing and improving energy
conservation and emission reduction indicator systems, monitoring systems, and assessment systems to
MFLEX Suzhou, MFLEX Yancheng, Multek, JDI Electronics, and Mutto Optronics have passed
achieve controllable and manageable energy usage.
ISO 14064 greenhouse gas verification
We also set overall group energy conservation goals, and arrange an energy conservation team to
Products of MFLEX Suzhou and Multek China Ltd. have passed conduct energy-saving audits and management review meetings for regular evaluation of energy
ISO 14067 carbon footprint certification management goals to ensure their steady progress.
MFLEX Suzhou, Multek, and Suzhou Dongyue have established Science-Based Targets (SBTi) The Company drives key operation entities to gradually establish a smart energy online monitoring
system. We achieve real-time monitoring and analysis of the energy consumption of major equipment to
promptly detect abnormal energy consumption. We also grasp energy consumption trends and changes
Management at different positions and time periods by virtue of information technology and big data analysis to
energy identify energy-saving improvement opportunities. And accordingly, we continuously optimize energy
conservation use strategies to further improve energy efficiency.
The Company conducts multi-level energy management specialized training to continuously enhance
employees' energy conservation awareness and capabilities. MFLEX BU has invited senior experts in the
Case energy field to conduct professional technical training across the entire energy lifecycle, encompassing
all key aspects of energy management, including energy supply, transmission and distribution, end-
Multek Received the Official Validation from the Science Based Targets Initiative (SBTi) use, and equipment and facilities. The BU also conducts on-site topic discussions, graduation defense
assessments, and certificate issuance to ensure successful practice of training outcomes.
In September 2025, the greenhouse gas emission reduction targets submitted by Multek, covering the entire value
chain, were officially validated by the Science Based Targets initiative (SBTi). Multek is committed to complying with
the latest SBTi standards to establish a net-zero emission pathway across the entire value chain: The Company drives key operation entities to replace old, high-energy-consuming and inefficient
equipment and adopts more efficient production technologies and processes to improve energy
efficiency and achieve operational emissions reduction.
Net-Zero Emission Target
Lighting upgrade: MFLEX BU is phasing in lighting upgrades by retrofitting old lighting fixtures with
Multek is committed to achieving net-zero greenhouse high-efficiency LED lighting fixtures. During the reporting period, MFLEX Suzhou reduced the wattage
gas emissions across the entire value chain by 2050. of lighting fixtures in some workshops and office areas to 12W and 20W, respectively; and MFLEX
Yancheng changed some 18W fluorescent tubes to 8W tubes, resulting in a cumulative energy saving of
approximately 621,900 kWh.
Short-term Target
Energy efficiency improvement of public utility systems: Multek BU constructed a high-efficiency
Using 2024 as the base year, Multek promises a 58.8% Technological centralized HVAC plant, replacing decentralized units with high-efficiency chillers. After the upgrade, the
reduction in Scope 1 and Scope 2 GHG emissions and a energy system's annual comprehensive energy efficiency ratio (EER) surged from 0.271 to exceeding 5.0, yielding
conservation
systems, such as compressed air, air conditioning, vacuum, and PCW, across some production areas,
enabling real-time, multi-party data synchronization and real-time monitoring.
Long-term Target
Power quality optimization: Mutto Optronics deployed 4,000 KVA of energy-saving filtering equipment to
Multek promises to achieve a 90.0% reduction in absolute mitigate harmonic losses, capturing a 5%–8% monthly reduction in electricity consumption.
Scope 1, 2, and 3 GHG emissions by 2050 compared to the
Circulation system modification: Yancheng Dongchuang implemented a special upgrade for the cooling
water diversion technology, the BU significantly reduced operational power while maintaining stable
outlet pressure and flow, with an estimated annual saving of 475,200 kWh.
Indicators Unit 2025
The Company increases the consumption proportion
of clean energy and renewable energy and gradually Gasoline tonnes 83.89
increases the share of green electricity through measures
Direct
such as expanding photovoltaic power generation Diesel tonnes 67.86
Energy energy
and purchasing green electricity. Photovoltaic power
Structure generation equipment is installed in all suitable areas of Natural gas m3 8,463,979.37
Optimization the plants.
Purchased Electricity (excluding green electricity) kWh 932,930,760.67
Indirect
Purchased green electricity kWh 568,429,754.91
Impact, Risk, and Opportunity Management
energy
Solar / Photovoltaic kWh 20,359,903.70
DSBJ has established a process and framework for managing climate risks and opportunities to identify, analyze, assess, and
Total renewable energy consumption kWh 588,789,658.61
clearly understand the scope of climate change risks and opportunities, thereby enhancing climate resilience.
Total energy consumption tce 126,136.60
We identify climate risks and opportunities based on the framework recommendations
Identification of Direct GHG emissions (Scope 1) tCO2e 18,767.79
of the IFRS Sustainability Disclosure Standards No. 2 - Climate-related Disclosures , and
Climate Risks and
the Guidelines for Self-regulation of Listed Companies No. 17 - Sustainable Development
Opportunities Indirect GHG Emissions (Scope 2, Market-Based) tCO2e 568,714.59
Report (Trial) from the Shenzhen Stock Exchange.
GHG
Indirect GHG Emissions (Scope 2, Location-Based) tCO2e 796,621.89
We assess the likelihood of risk occurrence, the degree of risk impact, the extent of financial emissions
Materiality Assessment
impact, etc., through internal and external environmental studies and risk management
on Climate Risks and Total GHG Emissions (Scope 1 and Scope 2, Market-Based) tCO2e 587,482.38
tools, to identify significant climate change risks and opportunities and their impacts on
Opportunities
the Company.
GHG Emission Intensity (Scope 1 and Scope 2, Market-Based) tCO2e /RMB10,000 of revenue 0.1464
With the integration of material risks and opportunities into corporate risk management,
Management of we continuously strengthen risk mitigation strategies, conduct targeted risk management
Climate Risks and and response initiatives, and regularly monitor and track implementation progress, in
Resource Utilization and Circular Economy
Opportunities order to ensure alignment with policy trends, market developments, client requirements,
and other critical factors.
Indicators and Targets Water Resources Management
The Company's water resources are sourced primarily from municipal water
Aligning with industrial best practices, supply, and the principal production and operational sites with high water
DSBJ has refined its greenhouse gas (GHG) consumption are located in areas with low water resource risk levels. The
and energy management framework with Greenhouse Gas Emission Energy Management Company has established water resource management targets and defined The water resource
reference to SBTi's Science Based Targets. Reduction Target Targets specific requirements for water use management based on internal policies management goal
We successfully operationalize our long-term Using 2024 as the base year, Using 2024 as the base and specifications such as its water management procedures, with the EHS is to achieve a 5%
climate change commitments by distilling DSBJ will achieve an 8% year, DSBJ will achieve a departments of each business unit responsible for the overall coordination and reduction in water
them into quantifiable, traceable, and reduction in greenhouse gas 6% reduction in electricity supervision of water resource management. The Company also drives key facilities intensity by 2030, using
phased indicators and targets and seamlessly emission intensity (Scope 1 intensity by 2030. to establish water conservation teams or designate water conservation officers, 2024 as the base year
integrating them into the production and and Scope 2) by 2030. who formulate annual water conservation plans and implementation programs to
operation performance appraisal system of promote the sustainable use of water resources. During the reporting period, the
our diverse operation entities. Company experienced no violations related to water resources.
We conduct water balance analysis to supervise and analyze the supply, use, and discharge of water Case
during the factory production process, and formulate targeted water conservation measures to
Water improve water resource utilization rates. As of the end of the reporting period, MFLEX BU, Multek BU, JDI Electronics' Efficient Water Resource Utilization Practices
balance JDI Electronics, Mutto Optronics, the Sheet Metal Plant of DSBJ, and Yancheng Dongchuang have all
analysis conducted water balance analysis. Targeting three core water use areas of production, domestic use, and equipment utilities, JDI Electronics predicts
water demand based on production tasks and formulates precise allocation and water conservation plans in
advance, continuously advancing water-saving initiatives. These include introducing new automated production
We formulate a water consumption quota plan and monitor and follow up on the monthly water
lines to reduce water consumption per unit of output, and implementing process improvements such as repeated
consumption situation to find out the weak links and strengthen the daily water conservation
rinsing of cleaning tanks to achieve efficient wastewater recycling and reuse. The Company has also adopted
management. We advocate the use of water-saving facilities and appliances and regularly check and
air compressor waste heat recovery technology as an alternative to traditional steam heating, and dynamically
Water maintain the water supply pipe networks to eliminate the phenomenon of water leakage, drip and
optimizes water usage parameters based on actual equipment operating conditions, minimizing overall water
conservation spill. We also carry out water conservation publicity activities with enhanced water conservation
consumption.
publicity efforts to advocate the water conservation trend.
The Company actively promotes water recycling technology. We renovate and upgrade recycling
Indicators Unit 2025
water treatment facilities for collecting, treating, and reusing production wastewater to improve
water resource utilization efficiency and reduce the impact of wastewater discharge on surrounding Total water intake tonnes 9,901,341.41
Water water bodies. We retrofit or construct rainwater reuse irrigation systems on production and
recycling operation sites, purifying and treating collected rainwater for greening, cleaning, and other non- Total water consumption tonnes 2,907,396.72
potable uses, so as to reduce the water consumption from the municipal water supply.
Water consumption intensity tonnes/ RMB 10,000 of revenue 0.7246
During the selection process for new project investments, we, with full consideration of water
resource risks, constantly monitor the risk of water shortages and assess water use strategies to
Water risk
ensure that the water supply can meet the needs of production and operation.
Green Packaging and Raw Materials
reduction
DSBJ advocates the circular economy concept and actively practices the principles of reduction, reuse, and recycling, driving
improvements in resource efficiency across the full lifecycle of raw materials and packaging materials.
Case
MFLEX Suzhou Comprehensively Promoted the Construction of Water-saving Factory
MFLEX Suzhou comprehensively promoted the construction of water-saving factories by optimizing water equipment
management, innovating technology applications, and strengthening employee water-saving awareness.
Using recycled materials Promoting circular packaging
DSBJ is committed to advocating sustainable DSBJ implements reduction measures across the entire life-
system and redirected back to the purified water production plant for reuse in manufacturing processes, with an
raw material procurement, prioritizing envi- cycle, covering packaging design, manufacturing, distribu-
annual recycling volume projected at 500,000 tons. Residual RO concentrated water can be used for toilet flushing,
ronmentally friendly and renewable materi- tion, transportation and sales to reduce resource consump-
with an estimated annual tap water conservation of 35,000 tons.
als. For example, Yancheng Dongchuang has tion and mitigate environmental impact. For example, MFLEX
Rainwater resource utilization: Rainwater harvesting and treatment facilities are constructed, through which 12,000 achieved 100% utilization of recyclable alu- BU has operationalized a "Use-Inspection-Return" closed-
tons of rainwater can be reused annually for landscape irrigation and cleaning purposes. minum, with the total procurement reaching loop system for plastic turnover trays, ensuring high-fidelity
suppliers of Yancheng Dongchuang involved has replaced single-use packaging carriers with recyclable
Production line water-saving renovation: The "Production Line Reverse-Flow Rinse System" is implemented for in such procurement have obtained UL 2809 steel frames, capturing significant gains in green logistics
utilizing conductivity control technology to enable water recycling within production line tanks, with an annual recycled content certification. MFLEX Suzhou, efficiency. JDI Electronics significantly advanced its recovery
water circulation volume of 1 million tons. in cooperation with its suppliers, has used a agenda for component trays and cartons and cardboard,
diverse range of recycled raw materials during achieving an 87% tray recycling rate. Similarly, Source Pho-
Fostering a water conservation culture: The Company conducts training on water-saving operational standards for
its manufacturing process, including recycled tonics prioritizes recyclable and biodegradable eco-friendly
key equipment operators, new employees, and temporary workers on an ad hoc basis, nominates selected personnel
solder paste, gold salts, copper powder, cop- packaging materials, with 24.69 tons of recyclable/recycled
to participate in the "water-saving specialist" training program organized by the district water affairs bureau, and
per foil, and steel sheets. packaging materials used during the reporting period, ac-
strengthens day-to-day water conservation awareness initiatives.
counting for 81.76% of its total usage.
Pollution Prevention and Ecosystem Protection
Emissions and Waste Management
The Rf Top Electronic and Yongchuang Technology production bases have implemented a zero-discharge roadmap
The Company complies with relevant laws and regulations such as the
for production wastewater. Production wastewater from the bases is centrally collected in a temporary storage pond
Law of the People's Republic of China on the Prevention and Control Emissions and Waste
and then uniformly fed into a triple-effect evaporation treatment system. This system uses heat energy cascading
of Water Pollution, the Law of the People's Republic of China on the Management Targets
technology to separate pollutants from water. The treated condensate is entirely recycled into production processes,
Prevention and Control of Environmental Pollution by Solid Waste,
and the Law of the People's Republic of China on the Prevention and
wastes" emissions
Control of Air Pollution , as well as local emission standards. We have
established the "Three Wastes" Management Policy, the Hazardous Waste Using 2024 as the base year, achieve a
Management Policy and other relevant management policies, as well as 5% reduction in the emission intensity
emission and waste management targets. We also set up a comprehensive of particulate matter (PM) and volatile Indicators Unit 2025
"three wastes" emission monitoring and control system involving various organic compounds (VOCs) by 2030
Total wastewater discharge volume tonnes 6,997,064.69
business segments. These initiatives enable us to minimize the impact of Using 2024 as the base year, achieve
emissions on the environment under the principle of "reduction, recycling a 3% reduction in the generation
and reutilization" on the basis of ensuring compliance with emissions intensity of solid waste by 2030, and
standards. During the reporting period, the Company encountered no achieve over 85% comprehensive
incidents of exceeding pollutant standards or illegal discharge of exhaust utilization rate of solid waste
gas and wastewater, nor any illegal violations related to waste disposal.
Exhaust Emission Management
Types of exhaust emissions mainly include volatile organic compounds, hydrogen chloride, sulfuric acid mist, hydrogen
Wastewater Discharge Management cyanide, nitrogen oxides, particulate matter, etc., generated during the production process. The Company strictly complies with
relevant laws, regulations, and standards such as the Law of the People's Republic of China on the Prevention and Control of
The Company's wastewater mainly comes from domestic sewage and industrial workshop wastewater. The Company has Air Pollution . All exhaust emission outlets are designed and installed in accordance with national standards. The exhaust gases
established targeted system guidelines such as the Water Pollution Control Management Benchmark , to regulate wastewater are emitted into the atmosphere through high exhaust pipes after activated carbon adsorption, alkali neutralization, cloth bag
discharge control, treatment processes, monitoring, emergency management, etc. Domestic sewage is discharged into the de-dusting and other treatment processes. Exhaust emissions at major operating bases are monitored by internal management
municipal sewage network, while production wastewater is treated separately in the on-site wastewater treatment facilities. personnel and third-party agencies to ensure emission compliance. We continuously optimize waste gas treatment processes
The production wastewater, after multi-stage process including coagulation, precipitation, biochemical treatment, and MBR and upgrade high-efficiency end treatment devices to further reduce exhaust emissions on the basis of emission compliance.
membrane filtration, will be discharged into the municipal sewage network if meeting the discharge standards. The wastewater
discharge at major operating bases is monitored by internal management personnel and third-party personnel. The Company
optimizes the wastewater treatment process based on different production conditions to enhance the effectiveness of pollutant
treatment. In order to strengthen wastewater testing management, we install online pollutant monitoring systems at discharge In 2025, Yancheng Dongchuang officially put into operation an online monitoring platform for dust collectors,
outlets to connect with national, provincial, and municipal environmental protection departments to ensure stable and realizing real-time monitoring, intelligent early warning, and historical data traceability of dust concentration and
compliant discharge. equipment operating status through the linkage of IoT sensing and data mid-platform. During the reporting period,
this system provided early warnings and assisted in the handling of abnormal operating conditions a total of 50
times, effectively preventing the risk of exceeding exhaust emission standards. In addition, Yancheng Dongchuang
deployed more than 50 oil mist purification devices in the die-casting section to further reduce related exhaust
To enhance the management efficiency of the water treatment system, the Sheet Metal Plant of DSBJ innovatively
emissions.
introduced a digital intelligent inspection system, which uses a mobile app to achieve full digital control of the entire
inspection process. This system automatically pushes inspection tasks to maintenance personnel every 2 hours.
Since it includes reasonable threshold values for various water treatment indicators, if there are any data anomalies
detected, the system will provide immediate alerts and feedback, thereby significantly improving the speed of fault
response and effectively preventing the risks of missed inspections, overdue inspections, or fake inspections. With Indicators Unit 2025
this system, it can ensure that the water treatment facilities are always in optimal operating condition.
Volatile organic compounds (VOCs) emissions tonnes 14.41
In order to achieve high-efficient resource utilization while meeting emission standards, the Company's major operational sites Nitrogen oxides (NOx) emissions tonnes 21.91
collect, treat, and reuse wastewater by actively deploying wastewater reuse technologies and upgrading wastewater treatment
Sulfur oxides (SOx) emissions tonnes 3.81
facilities, which gradually reduces wastewater discharge and minimizes the impact on the surrounding water environment.
As of the end of the reporting period, the Automotive Electronics Plant of MFLEX BU, the new Dongshan factory of Mutto Particulate matter (PM) emissions tonnes 12.57
Optronics, and parts of the plants of the P-Manufacturing BU (the Sheet Metal Plant of DSBJ, Rf Top Electronic, and Yongchuang
Technology) have all achieved zero industrial wastewater discharge.
Waste Management
Around the environmental goal of "reduction, reutilization and harmlessness of solid waste", In 2025, the comprehensive
The waste generated by the Company is divided into two categories: non-hazardous waste and hazardous waste. Non-hazardous waste MFLEX Suzhou continuously implements waste reduction in multiple dimensions according utilization rate of industrial
mainly includes household garbage, waste plastics, waste paper, waste wood, waste metal, waste textiles, etc., while hazardous waste to the Waste Disposal Management Operating Instructions . In 2025, it passed the highest solid waste reached
mainly includes sludge, waste printed circuit boards and scraps, dry film residue, and contaminated waste (filter cores, empty barrels, Platinum-level Certification of the UL2799 Zero Waste to Landfill Program again after a
ink cans, etc.). The Company strictly complies with relevant laws and regulations such as the Law on the Prevention and Control of review. For many years, MFLEX Suzhou has continuously introduced advanced equipment to
Environmental Pollution by Solid Wastes and the Measures for the Administration of the Transfer of Hazardous Waste. In accordance dehydrate hazardous waste dry film residue and filter cores, reducing weight by about 50%,
with guidelines such as the Waste Management Benchmark, the Hazardous Waste Management Plan, and the Benchmarks for Selection and conducted low-temperature drying for copper-containing sludge and nickel-containing
of Contractors for Waste Treatment , we have established strict waste treatment processes and safety operating procedures, clearly sludge in the plant, decreasing the sludge amount by about 3,000 tons per year. It recycles
defined qualification standards for waste contractors, and regularly organize EHS personnel to assess the operation of waste to ensure cowhide paper and pads used in production for further use and entrusts a third party that
its harmlessness. Through these initiatives, we may minimize the impact of waste on the environment and human health. does not dispose of solid waste by landfill methods to dispose of waste, achieving zero waste
to landfills.
Hazardous Waste
Suzhou Dongyue continuously optimizes waste disposal paths and achieves hazardous waste In 2025, the comprehensive
The Company has established hazardous waste warehouses equipped with waterproof and leak-proof measures, where resource utilization and low-cost disposal through environmental technology innovation. utilization rate of hazardous
hazardous wastes are strictly classified, stored temporarily, and managed by designated personnel according to the Standard It adopts physicochemical methods to treat concentrated residual liquid and waste cutting waste exceeded
for Pollution Control on Hazardous Waste Storage. We also submit warehousing applications to the government's electronic fluid, and purifies and manufactures industrial salt with the help of three-stage MVR
systems of hazardous waste management, and regularly entrust agencies with professional treatment qualifications to remove evaporation technology. As a result, the disposal unit price of both concentrated residual
and dispose of hazardous wastes. During the reporting period, some of the Company's operating sites further improved the liquid and waste cutting fluid has been reduced to less than half of the original price. By using
environmental information management system, realizing electronic hazardous waste ledgers, visual statistical analysis, and co-smelting technology, it transforms sludge generated during the production process into
early warning of overdue or excessive hazardous waste storage and excessive outsourced disposal. They contribute to the cement materials, realizing the resource utilization of sludge while reducing disposal costs.
construction of a "zero waste" environment with the help of digitization.
Non-Hazardous Waste
Indicators Unit 2025
Non-hazardous wastes in the plants are prioritized for recycling. They are transferred to designated storage points within the
specified time. General production solid waste is collected and processed by qualified agencies for comprehensive utilization, Amount of generated non-hazardous waste tonnes 38,506.07
while household garbage is collected uniformly and then removed by the sanitation department on a regular basis under
Amount of recycled non-hazardous waste tonnes 26,111.68
entrustment. Waste oils are stored in dedicated containers and regularly recycled and disposed of by qualified agencies under
entrustment.
Amount of generated hazardous waste tonnes 35,506.72
Amount of recycled hazardous waste tonnes 32,102.57
Hazardous waste compliance disposal rate % 100%
Adhering to the principle of "reduction, reutilization and
harmlessness of solid waste", the Company identifies
Biodiversity Conservation
MFLEX Suzhou has obtained
opportunities for waste reduction to accelerate targeted solid
waste reduction progress through tracking and analyzing
the highest Platinum-level Certification from
waste data, and minimizes the generation of waste through the UL2799 Zero Waste to Landfill Program
the optimization of production processes and resource MFLEX Yancheng has obtained In strict accordance with national and local laws and regulations on biodiversity conservation, the Company emphasizes the
recycling. At the same time, the Company actively conducts the Certification of the UL2799 Zero biodiversity conservation concept throughout all phases of projects including planning, design, construction and operation, to protect
special training on waste reduction to improve employees' the ecological stability and biodiversity of the operating sites. During the project planning and design phase, the Company conducts a
Waste to Landfill Program
awareness and ability to reduce waste. comprehensive investigation and assessment of the surrounding ecological environment under environmental protection requirements,
fully understanding the characteristics and distribution of local biodiversity to
avoid selecting sites that may have adverse effects on the environment. As of
the end of 2025, all plants of the Company are located within industrial parks,
and production activities have involved no nature reserves or ecologically
sensitive areas. During the project construction phase, the Company minimizes
Yancheng Dongchuang continues to improve the waste management system and takes multiple measures to promote waste the impact on local vegetation, soil, and water by establishing construction
management. It applies the Waste Data Tracking Table (WTR) to accurately record full-process data of waste monthly and protection measures and restricting the construction areas. During the
implements targeted recycling collaboration programs to improve the waste recycling utilization rate. It also equips evaporation project operation phase, the Company conducts continuous environmental
system facilities for cutting fluid and introduces a process combining "pre-filtration + pre-treatment + low-temperature monitoring and regular collection and analysis of environmental indicators
evaporator + ceramic membrane" , resulting in a great reduction of outsourced waste liquid disposal volume by more than 85%. such as air quality, water quality, and soil quality to identify and solve potential
Furthermore, it conducts the special "Cutting Fluid Weight Reduction System Training" to improve the practical operation level problems in a timely manner. The Company also continuously implements the
of first-line maintenance personnel on waste reduction. landscaping enhancement projects in plants to improve the local ecological
microenvironment of these plants. Multek BU launched biodiversity advocacy campaigns
Prioritizing People to
Co-create a Shared and
Prosperous Future
Labor and Human Rights Management
Governance 14,663
DSBJ strictly complies with international human rights specifications, such as the International Bill of Human Rights, the 24,582 14,528
Gender Age
International Labor Organization Convention, the ILO Declaration on Fundamental Principles and Rights at Work, the UN (persons) (persons)
Guiding Principles on Business and Human Rights , and the Ten Principles of the UN Global Compact, as well as local laws and
regulations in its operating regions, and has established a comprehensive labor and human rights governance system. The 22,341
Strategy and ESG Committee of the Board of Directors is responsible for reviewing major issues related to labor and human
rights management and approving major labor and human rights management plans and targets. The Human Resources
Working Group (composed of the HR department at headquarters and the HR management departments from various BUs) Male Female Under 30 30-50
employees employees years old years old
collaborates with the EHS Working Group (composed of the EHS departments at headquarters and from various BUs) to jointly
promote the implementation of labor and human rights management topics, and monitor and continuously improve the work Over 50 years old
progress. The Human Resources Working Group is responsible for ensuring employee rights protection, such as the prohibition
of child labor and forced labor, collective bargaining, anti-discrimination, diversity and inclusion, and compensation and
benefits, while the EHS Working Group is responsible for occupational health and safety management. They work together
across levels and horizontally to create a harmonious and positive workplace ecosystem.
Strategy and Management Mechanism
DSBJ is committed to respecting the basic rights and interests of every employee and providing all employees with equal
Hierarchy Background
opportunities for work and development. The Company has established a comprehensive and complete labor and human rights
(persons) (persons)
management system. We have clarified the code of conduct and requirements for employees, and taken various measures to
prevent potential human rights risks, so as to create a safe, reliable, harmonious and efficient working environment.
Compliance Hiring Senior
Management
Middle
Management
College degree
or below
Bachelor's
Degree
The Company strictly complies with laws and regulations such as the Labor Law of the People's Republic of China and the Front-line Employees Postgraduate/MBA or above
employment policies of the operating location, and conducts standardized management of the entire process of talent
introduction. In the recruitment and hiring process, we adhere to the principles of open recruitment, equal competition,
and selection of the best candidates based on moral integrity and professional competence. All applicants who meet the
requirements for the corresponding positions are eligible for interviews, without discrimination on gender, education, age, race,
family status, religion, or cultural background, in order to ensure compliance and fairness in talent recruitment. The Company
has established a recruitment and employment verification mechanism to strictly prohibit child labor and forced labor, ensuring 7,759
that our employment is legal and compliant. During the reporting period, the Company achieved 100% labor contract signing
rate and 100% social insurance coverage for all employees. 31,486
Geographical The employee voluntary turnover rate:
Area (persons)
The total number of the Company's
employees was
The number of employees hired
during the reporting period was
The number of newly
hired graduates was
Chinese Employees (including Hong Kong,
Macau, and Taiwan)
Overseas Employees
Respect for Human Rights Issues of Focus Management approach Mitigation and Control Measures
In the course of its operations, DSBJ takes actions consistent with the Responsible Business Alliance (RBA) Code of Conduct and Comply with the laws and regulations of each operating location,
The Company establishes institutional
drives its various business segments to formulate policies and specifications including the Code of Business Ethics, the Code of promote the establishment of trade union organizations, and protect
frameworks such as the Work Procedure
Corporate Ethics, the RBA Management Handbook, and the Handbook on Social and Environmental Responsibility , establishing employees' rights to know, participate, and supervise.
for Freedom of Association and Collective
Trade union Promote collective consultation and the signing of collective contracts
a human rights risk assessment and prevention system. The Company consistently respects and safeguards the legitimate rights Bargaining , according to which all employees
and collective and collective employment agreements in terms of employees' wag-
and interests of all employees and stakeholders in its business operations, prohibiting any form of human rights violation, and have the right to freely join or form trade
es, working conditions, welfare benefits, training and development,
bargaining
unions and participate in collective
ensuring that every employee enjoys a harmonious, inclusive, and healthy working environment. work environment, and special protection for female employees. Dur-
bargaining, so as to create a working
ing the reporting period, 100% of employees were covered by union/
environment of free expression.
collective bargaining agreements.
The Company establishes an occupational
Significant labor and Strictly monitor and manage health hazards in all workplaces, carry
Multek, MFLEX Suzhou, and Mutto health and safety management system and
human rights risk events: Health and out safety risk assessments and promote safety culture construction,
develops corresponding safety operating
Optronics have obtained safety as detailed in the "Occupational Health and Safety" section of this re-
procedures and methods to create a safe and
port.
the RBA VAP certificate from the healthy workplace.
Responsible Business Alliance
Ensure that employees' salaries strictly follow relevant laws and regu-
The Company establishes institutional lations stipulating minimum wage standards, overtime compensation,
frameworks such as the Salary Management and statutory benefits, and legally guarantee employees' right to paid
Wages and
Measures , legally stipulating salaries and annual leave.
benefits
benefits to ensure that all employees receive Regularly conduct compliance reviews of wage payments.
fair and reasonable work returns. Continuously analyze and adjust salary data to ensure the fairness
Mitigation and Control Measures and competitiveness of the salary system.
The Company continuously improves its human rights due diligence management procedures. Each business segment
strengthens human rights due diligence and improves corresponding prevention, mitigation, and remediation measures for
potential human rights risks in business operations.
Training and Capacity Building
The Company promotes each business segment to conduct labor and human rights policy-related training regularly according
Issues of Focus Management approach Mitigation and Control Measures
to actual conditions in order to continuously improve the human rights awareness and practice ability of all employees. Multek
BU conducted RBA & COC training for all employees annually. In 2025, 5,049 employees were trained, achieving a completion
Our plants all over the world strictly regu-
rate of 94.21%. The P-Manufacturing BU systematically provided labor rights and human rights-related policy training, covering
late their hiring processes in accordance Thoroughly verify the authenticity of applicants' identities.
Prohibition of prevention of discrimination and harassment, prevention of inhumane treatment, prohibition of child labor recruitment
with local laws and regulations. We have Establish a reporting mechanism.
child labor and and remediation, etc. Among all employees, 98% of them were aware of the new regulations for 2025 and their own human
formulated institutional frameworks such Formulate requirements for enforcement when child labor is discov-
protection of
as the Management Procedure for Child La- ered, and handle child labor employment events properly in accord- and labor rights content. The TCTD BU conducted training on CSR Red Line Training and Employee Handbook and Social
minor workers bor and Minor Workers , strictly prohibiting ance with RBA requirements. Responsibility Handbook for all employees. Source Photonics provided CSR, Ethics Policies, labor rights and human rights
the use of child labor in any form.
training to all employees (100% employee coverage). DSG conducted grievance handling and anti-harassment training to help
the company prevent human rights risks in its own operations, value chain, and business-related activities.
Employees are free to conclude and terminate labor contracts at their
own discretion.
Recruit sufficient employees based on business development, and
The Company establishes relevant systems
Forced and
such as the Forced Labor Management
formulate working hour management and tracking mechanisms, en- Complaints and Appeals
compulsory suring that employees' working hours do not exceed the maximum
and Control Procedures , to strictly prohibit
labor hours stipulated by local laws. The Company encourages employees and job applicants to report any violations of company policies or regulations through
forced and compulsory labor.
Inform employees of overtime work in advance and obtain their con-
public channels. The Company will seriously investigate and handle all reported violations, and will take corrective measures
sent; analyze and audit working hours on a regular basis; make timely
adjustments to work arrangements and ensure the right to take leave. when necessary.
The Company establishes institutional
Discriminatory clauses must not appear in recruitment advertise-
frameworks such as the Anti-Discrimination
ments, and employees must not be illegally rejected due to gender,
Anti- and Anti-Harassment Policy to clarify the
age, race, and other diversity background factors.
discrimination prevention mechanism, reporting channels,
Conduct anti-discrimination and harassment training for employees.
and anti- and handling procedures for discrimination
Provide reasonable special protections for vulnerable labor groups.
harassment and harassment incidents. We are commit-
Establish investigation and verification procedures and take corrective
ted to eliminating any form of discrimina-
measures in a timely manner.
tion, prejudice, and harassment.
Employee Communication and Participation
The Company respects employees' opinions and requirements, and is committed to providing smooth and diversified
communication channels and establishing an open and healthy communication mechanism to ensure that the voices of
DSG establishes a comprehensive multi-dimensional communication matrix composed of "formal channels + digital
employees are heard, valued and responded to.
platform + informal interaction", and routine communication mechanisms such as monthly communication and
anonymous engagement surveys. In addition, relying on the Intranet system and the 7×24-hour DSG Employee AI
Assistant, DSG provides employees with instant feedback and suggestion channels. DSG adheres to the closed-loop
Employee Representative Assembly management process composed of employee feedback, management assessment, action plan and effect verification
We establish and improve the democratic management mechanism for employees in accordance with the to ensure that the voices of employees become important sources of corporate governance decisions.
laws and regulations and the relevant trade union requirements of each operating location, and regularly
hold employee representative assemblies, trade union committee communication meetings and other
democratic management meetings. Major matters involving the vital interests of employees are addressed
through trade unions by gathering opinions and suggestions from employee representatives and
performing review procedures, so as to protect the rights and interests of the employees in an effective
manner. Employees can voluntarily join the union and participate in employee representative assembly- Multek BU has built a multi-faceted engagement framework that
related affairs. The Company conducts collective bargaining in accordance with the law on key issues such vertically covers all job levels and horizontally connects various
as labor remuneration, working hours, working conditions, welfare protection, vocational training and core departments to open up opinion feedback channels through
development, and working environment, to build a harmonious and stable labor relationship. routine communication mechanisms. During the reporting
period, a total of 40 special communication meetings were
held, efficiently resolving more than 160 practical problems for
Employee Communication Meeting employees. As voices of frontline can be directly heard by the
By building a bridge for communication between superiors and subordinates, the Company provides Management, employees' sense of belonging and organizational
employees with opportunities for direct dialogue with the management to efficiently drive the Company's cohesion have been continuously enhanced.
optimization and improvement.
Multek BU Lunch Communication Meeting
General Manager's Mailbox/Employee Suggestion Box Appeal and Protection Mechanism
The Company sets up mailboxes and suggestion boxes, with designated personnel regularly opening them
The Company has established internal rules such as the Employee Appeal Management Procedures , clarifying the entire
to conduct special investigations and handle and provide feedback on employee complaints.
process of handling employee appeals and reports that are applicable to all full-time employees and part-time employees,
ensuring there is a response to issues raised by employees. Employee appeals will be handled and investigated by a dedicated
team composed of the Human Resources Department, trade union representatives, etc. The Company encourages employees
Online Platform & Employee Hotline
to file appeals in a timely manner when facing any unfair treatment or to report violations of human rights, and responds with
The Company communicates with employees through OA system functions, online feedback platform,
solutions to the appellant in writing within a specified time frame. The Company ensures that every reasonable complaint or
communication hotline, email, etc., to ensure that employees can freely express their opinions and ideas.
report is received and independently investigated under the principle of confidentiality in a timely manner, and actively takes
the necessary measures to protect the legitimate rights and interests of bona fide whistleblowers to ensure that they are not
subject to any form of retaliation.
Employee Service Center
The Company drives the establishment of employee service stations, employee care centers, and other Complainants can freely choose to file complaints with supervisors at all levels or relevant functional departments through
service organizations at each operating site, assigning dedicated personnel to connect and handle real-name or anonymous channels.
employee inquiries and feedback.
After the complaint is processed, the relevant investigation and communication records shall be registered, sorted, and
sealed for future reference. If the investigation results are true, corrective actions should be taken for the violations or
disciplinary measures such as warnings, demerits, or termination of employment contracts should be implemented
according to regulations after the investigation report is filed. Those suspected of illegal or criminal activities shall be
transferred to the relevant judicial authorities.
The P-Manufacturing BU builds an online QR code platform as a green channel for employee opinions. Employees The complaint handling agency must have no direct conflict of interest with the complaint matter. After the investigation,
can conveniently submit problems and suggestions through this online feedback channel, achieving efficient verification, and processing by the complaint handling agency, if the complainant is satisfied with the result, the complaint
direct access and immediate response. At the same time, a company-wide monthly routine meeting mechanism is can be terminated. If dissatisfied, the complainant can apply to the relevant management for further review.
established to promote management's regular face-to-face communication and interaction with frontline employees,
further smoothing communication channels and building team consensus.
Case Case
Source Photonics' "Open Door Policy" Mutto Optronics Promotes Drone Security
Source Photonics implements an "open door policy" for employees, ensuring that employees are willing and able to In October 2025, Mutto Optronics officially launched its autonomous drone patrol system to implement focused
speak up effectively when their legitimate rights and interests are infringed upon or when they detect irregularities. tracking and monitoring for core areas such as warehouses, hazardous operations, and construction sites. Leveraging
Employees may directly report any questions, complaints, suggestions, or violations of social responsibility the expansive aerial vantage point and rapid deployment capabilities of unmanned aerial vehicles, this system
standards to supervisors at all levels or to the HR department, administration department, or the Company's Legal effectively eliminates the visual blind spots inherent in traditional manual inspections, significantly bolstering our
Department, at their own discretion. The entire complaint handling process strictly adheres to the principle of site-specific risk identification and early-warning capabilities.
privacy protection, keeping the identity of whistleblowers strictly confidential, and explicitly prohibits any threats,
retaliation, or unfair treatment, ensuring that employees have nothing to worry about when exercising their right to
report and raise concerns.
Health and Safety Culture Building
Occupational Health and Safety The Company focuses on building a health and safety culture. We regularly conduct special training on health and safety
based on the work requirements of employees to promote effective safety protection in their daily work. At the same time, the
In strict accordance with laws and regulations such as the Safety Production Law of the People's Republic of China, the Law of Company actively carries out activities such as Safety Production Month and safety knowledge competitions to publicize the
the People's Republic of China on the Prevention and Control of Occupational Diseases, the Fire Protection Law of the People's safety culture, in order to create a good cultural atmosphere where everyone speaks about safety and everyone is responsible
Republic of China and the Regulations on Supervision and Management of Occupational Health in the Workplace , as well as for safety. In 2025, we achieved 100% coverage of health and safety production training.
the requirements of the ISO 45001 management system, DSBJ has established a comprehensive environment, health and
safety (EHS) management system and formulated multiple management policies and norms such as the Occupational Health
Management System and the Safety Production Management Procedures , which cover all employees, contractors, and specific
suppliers. The annual health and safety goals are incorporated into the performance assessments of the relevant responsible
personnel to ensure the effective implementation of health and safety management requirements.
All major production and operation entities of the Company have passed the
ISO 45001 occupational health and safety management system certification
Multek BU's Safety Knowledge Competition Dongshan Precision's Safety Month Activities
MFLEX Suzhou was awarded the title of
Management
Case
Suzhou Dongyue's Multi-layered Safety Culture Building
Suzhou Dongyue is committed to cultivating a multi-dimensional safety culture and building a safety empowerment
Operation Safety Management system with full employee participation. It has institutionalized a behavioral safety observation mechanism to
identify and correct unsafe behaviors through on-site observation and communication. Through regular safety
The Company has institutionalized a systematic operational safety prevention and control framework, underpinned by a
training for all employees and specific persons, and special programs such as " Safety Lesson" and "Safety Minute",
robust safety production responsibility system that cascades accountability directly to the production front line. In terms of
it has improved employees' safety knowledge reserves. Furthermore, it pioneered the integration of the ILUO skills
hardware guarantees, we strictly execute scheduled overhauls and preventive maintenance programs, consistently elevating
matrix to quantify employees' EHS proficiencies, enabling the precision mapping of their skill levels across diverse
the inherent safety of our equipment. Furthermore, we are accelerating the integration of advanced technological means such
safety domains. Guided by the Safety Committee's regular monitoring and analysis of safety-related data, it has
as digitalization, to improve the effectiveness of safety management at the operation site, forging a holistic "human-physical-
proactively promoted on-site safety improvement and system optimization, maintaining a robust closed-loop
technical" defense barrier. In 2025, JDI Electronics won the second prize of team competition in the Suzhou Safety Production
management of "assessment-feedback-improvement".
and Labor Protection Skills Competition and the third prize of team competition in the Suzhou High-tech Zone Safety
Production and Labor Protection Skills Competition.
Occupational Health Management Contractor Safety Management
Insisting on prioritizing employees' health, the Company regularly assesses occupational disease hazard risks and formulates and The Company's health and safety management covers all activities of contractors in the Company. We have formulated documents such
implements occupational disease hazard control measures based on risk levels to ensure the safety and health of employees' working as the Contractor Safety and Health Management Policy to build a full-process contractor safety management mechanism. We have
environment. According to the list of occupationally hazardous positions, the Company carries out pre-job, on-job and off-job special implemented strict training, assessment access, and process monitoring for partners conducting construction in designated zones, with
medical check-ups for relevant employees and establishes health files. During the reporting period, no new confirmed or suspected detailed measures including signing safety agreements, pre-entry safety education, personnel and equipment inspections, approval
occupational diseases were found. of on-site work protection, and identification and remediation of work hazards. During the reporting period, for key construction
projects, the Company summoned the principal executives of suppliers for on-site disciplinary talks, sternly emphasizing the mandatory
With close attention to employees' mental health, the Company has built a multi-dimensional psychological support system to
requirements for safe construction. We also intensified site inspections and tightened penalties for safety violations. Furthermore, to
help employees effectively relieve occupational stress and improve psychological resilience. The Company regularly invites external
improve management effectiveness, we transitioned critical workflows, including construction permitting, safety training, and the four-
psychology experts to conduct special lectures on mental health, with areas covering stress management, emotional regulation,
party joint inspection mechanism, to digital platforms.
workplace communication, and psychological crisis intervention, to improve the mental health literacy of all employees. Some BUs have
taken the lead in introducing the psychological support project of the employee assistance program (EAP), which provides professional
Risk and Opportunity Management
psychological support to employees through various channels such as face-to-face counseling and telephone hotlines, in order to timely
identify, prevent, and intervene in psychological crisis events, creating a positive and healthy working atmosphere.
To effectively implement human rights policies and guidelines, the Company refers to requirements such as the Responsible Business
Chemical Management Alliance (RBA) Code of Conduct to identify, assess, and manage human rights risks in operations, value chains, and investment and
mergers and acquisitions. In accordance with risk identification, assessment, and management procedures, the Company sets up human
The Company formulates the Dangerous Chemical Safety Management System, the Management Measures for Precursor Chemicals and rights and labor management target indicator programs annually for some key plants, and monitors the progress of these indicators
Explosive Precursors and the Chemical Management Procedures in accordance with relevant national laws and regulations, industry monthly. In order to control risks more deeply, the Company conducts systematic review of potential risks, which includes regular
standards, and requirements of relevant parties on dangerous chemicals. We supervise and manage the entire process covering procurement, RBA-based self-assessments on human rights issues at key plants, customer social responsibility checks, or RBA audit certifications,
loading and unloading, use, production, storage, transportation, and packaging of dangerous chemicals and annually organize regular training to comprehensively assess the completion and improvement of indicators such as the prevention of forced labor, prohibition of child
for relevant personnel on dangerous chemicals. We also regularly conduct annual chemical leakage emergency response drills to enhance the labor, equal pay for equal work, health and safety, and collective bargaining rights. Audit results will be used to identify and address
ability to respond to chemical leaks. Through these initiatives, we maximize the elimination, reduction or control of the impact of hazardous potential human rights risks and issues, and continuously improve the human rights management system. During the reporting period,
chemicals on the health and safety of persons. the Company experienced no major incidents of labor and human rights risks.
Entire Process Management of Chemicals
Human Rights Due Diligence Process
Acceptance and
Procurement Handling and storage
warehousing
Human rights risk Prevention of Mitigation and Supervision and
All procurement needs must be reported When accepting highly toxic sub- Dedicated vehicles are used to transport identification and assessment human rights risks improvement implementation
uniformly according to work require- stances for warehousing, person- chemicals to prevent leaks and splash-
ments, and purchases must be made nel from the procurement depart- es. Chemicals are labeled with safety Identify and assess human rights Develop human rights poli- Regularly review and de- Establish feedback mecha-
strictly in accordance with the procure- ment and EHS department must labels after safe handling and storage to risks in the value chain according cies, codes of conduct, sup- velop improvement action nisms to follow up on the ef-
ment procedures after approval (highly be present to supervise the entire ensure correct classification. Hazardous to international human rights plier codes of conduct, etc., plans within a specified fectiveness of measures and
toxic substances are required to be ap- process of warehousing. chemicals are properly stored under standards, laws and regulations, and strengthen relevant time frame based on the continuously optimize the im-
proved by the project department and different categories and inspected by and relevant certification re- training and implementa- assessment results, and provement; establish smooth
the municipal public security bureau). designated personnel every day for quirements. tion. take mitigation and im- channels for complaints and
management. provement measures for appeals to detect and resolve
key issues. human rights issues more
Disposal Use Emergency Material issuance
protection and requisition effectively.
We properly handle Personnel handling chemi- Appropriate protec- The Company requires entities with demands
various types of chem- cals should wear proper per- tive equipment should to fill out the chemical requisition form and
ical waste in accord- sonal protective equipment. be provided in accord- request hazardous chemicals as needed.
ance with the Waste When supplying materials, it ance with the MSDS Hazardous chemicals distributed to the pro-
Disposal Management is required to use double-lay- requirements when duction site are stored in explosion-proof
Procedure and entrust ered tubes to prevent leakage handling chemicals cabinets with special locks equipped. In ad-
qualified recyclers and transparent tubes for and effective firefight- dition, the Company keeps detailed records
for the recycling and timely inspection and main- ing equipment should of chemical inventory changes and installs
disposal of hazardous tenance. We install monitor- be available in the a public security networked alarm system
waste. ing systems and other equip- chemical temporary and an infrared detection system on site. All
ment on the production site storage area for emer- these measures can contribute to ensuring
to detect toxic and flammable gency use. the safety of the requisition process.
gases.
Human Capital Development
In response to health and safety risks, the Company has implemented a dual prevention mechanism comprising risk assessment
and hidden danger investigation and control to effectively reduce the probability and impact of safety incidents. We encourage
key operating entities to establish institutional frameworks for evaluating and controlling risks associated with hazardous
source identification aligning with the requirements of ISO 45001, and conduct regular hazardous source identification and risk
evaluation activities, resulting in the compilation of a safety risk classification and control list based on evaluation findings for
comprehensive risk control. We assess the level of hidden safety risks and set up a file in accordance with internal regulations
Governance
and policies such as the EHS Inspection and Hidden Danger Investigation and Control System to actively rectify hidden dangers.
We also carry out regular internal inspections and actively cooperate with the external supervisory authorities and third parties Talent is crucial to the sustainable development of the business. DSBJ continuously optimizes the human resources
to conduct supervision and inspection to ensure that the hidden dangers are detected and resolved in a timely manner. management system to ensure its deep integration and precise alignment with the Company's overall strategy. The human
resources working group, which consists of personnel from the human resources management departments of the Company's
headquarters and various BUs, is responsible for formulating and executing the Company's human resources strategy and
Indicators and Targets
goals, promoting the implementation of human capital development topics, monitoring the progress of the work and making
continuous improvements. The Company's headquarters and all BUs have developed a series of institutional frameworks
covering comprehensive dimensions such as employee training, talent management, career advancement, performance
management, and compensation incentives, and scientifically planned human resources allocation according to strategic and
Indicators and targets Achievement in 2025
business development needs, which contributes to the optimization of the Company's talent structure and the enhancement of
organizational competitiveness.
No incidents of child labor and forced labor Targets achieved
Total number of employee discrimination incidents is 0 Targets achieved Strategy and Management Mechanism
No events of
infringement of
employee rights
continuously improves the competency model and the internal and external talent development strategies to create a
and interests
continuous growth support system for employees' career lifecycle, so as to satisfy the Company's strategy and business
development needs for versatile and high-quality specialized talents, thereby providing a solid talent support for business
innovation and development and globalization layout.
Talent Introduction
Zero serious safety accidents Targets achieved
The Company remains dedicated to enhancing its talent development and management strategy. We conduct regular
assessments of organizational needs and talent capabilities, in order to plan a forward-looking talent layout and anticipate
Zero fire accidents Targets achieved the recruitment demands proactively. Furthermore, we actively diversify our talent recruitment channels to ensure accurate
matching of recruitment resources. Through these initiatives, we have built a high-quality talent pool for the Company's
Zero employees who died due to work-related injuries Targets achieved development in an all-around and multi-dimensional way.
No major
employee health
and safety risk Zero major safety incidents Targets achieved Forward-looking layout Professional assessment Diversified channel
incidents
The Company builds the talent The Company reviews job com- The Company actively diversifies recruitment chan-
pool based on needs and re- petency models to enhance tal- nels, such as online recruitment, offline recruit-
quirements. We predict recruit- ent profiles and adopts profes- ment, campus recruitment, headhunting, internal
Targets achieved ment needs in advance and sional talent assessment tools referrals, internal job competitions, internal job
Injury rate per thousand workers ≤ 1.5 formulate recruitment plans for comprehensive evaluations transfers, etc., and collaborates with universities to
Injury rate per thousand workers 1.48 in line with the Company's and screenings of talent, so as cultivate graduates and interns to jointly cultivate
strategic planning and business to attract high-quality talent key professional talents, achieving a win-win situ-
development trends to reserve widely under the principle of ation for all parties. The Company also cooperates
relevant talents to support the fairness and impartiality. with training institutions to establish talent devel-
Company's future stable opera- opment and training frameworks, customizing tal-
tion. ent delivery channels according to the demand for
talent.
Case
DSG's Diverse Talent Introduction
DSG continues to expand diverse talent introduction channels. In 2025, it attracted a number of professional talents
in core technology fields such as AI, network security, and data analysis. It also established industry-university
partnerships with top universities such as Nanyang Technological University (NTU) and the National University of
Singapore (NUS) to carry out joint internship programs and customized training programs, in order to reserve a pool
of young talents with international competitiveness for the company's future development. Growing into a leading provider of
intelligent interconnection solutions
Support business success with a focus on organizations and people to
foster enduring growth for Dongshan
Case
Multek BU Launched the "Strong Skills Program" Internship Special Training Program
Initiatives
Multek BU is actively advancing the industry-education integration model by establishing strategic partnerships with
Leader Professional Talent Talent Pipeline
Zhuhai College of Science and Technology, Zhuhai Technician College, and Guangdong Technology College. In 2025, Management Management Management
this collaborative framework facilitated the onboarding of 52 interns. To ensure a seamless transition from campus
to career, Multek BU launched the "Skills Mastery Program", a bespoke internship initiative designed to sharpen
Internal
students' professional acumen and hands-on technical proficiency, to help talent incubation. Lecturer Database · Mentor Database · Teaching
Trainer Team
Case Database · Knowledge Management Center
Development
Talent Development
Talent Development Experts · Supporting
Expert Team
Business Success
Building
Digital Learning New Tools, New Methods, New Thinking
Platform Employee Experience, Digital Empowerment,
Platform
Construction Efficiency Improvement
Multek's University-Enterprise Cooperation Negotiation Conference Multek's "Skills Mastery Program" Training
DSBJ Cloud Classroom
Employee Training The Company has built an exclusive online learning platform for employees based on the cloud
classroom, which provides employees with rich course resources and efficient, convenient, and
DSBJ has built a systematic talent training system aimed at all employees around "One Top-level Plan, Three Core Initiatives,
flexible learning services to create an active learning community, thereby enhancing learners' sense
Two Teams, and One Learning Platform". Within this unified architecture, each business BU tailors bespoke competency-
of participation and enthusiasm. The learning platform, which provides both professional courses,
building programs to align with their specific operational needs, ensuring all-around and customized talent cultivation.
such as financial management, supply chain management, research and IT management, and general
By integrating premier internal and external training resources, we continuously upgrade our employee training and learning competency courses, such as workplace effectiveness and professional skills, has become an important
development system based on strategic guidance and offer a diverse and scientific curriculum designed to foster a culture platform for employees' daily work learning and self-learning. In 2025, the online training platform
of "continuous learning for all", which aims to increase job competence for all employees to help them achieve continuous courses were viewed 502,717 times, with a total learning time of 93,756.52 hours.
growth throughout their careers. In order to precipitate and replicate excellent organizational experience and core capabilities,
the Company has established an internal trainer mechanism, incorporating internal professional talents into the internal
trainer team. In this way, we have created a high-quality internal trainer team with comprehensive qualities and professional
capabilities, systematically transferring high-value experience to fuel the lifelong career growth and professional evolution of
every employee.
Indicators Unit 2025
Leadership Training
Total employee training expenditure RMB 0'000 616.59
In response to the Company's development strategy and employees' career development needs, we have established
Employee training coverage rate % 97.02% leadership standards to lay a solid foundation for leader selection, assessment and training. We continue our talent succession
planning and accurately define a leadership quality model according to DSBJ's leader standards. We develop a comprehensive
Total number of employee training participants Participant 497,368
hierarchical leadership training program that encompasses leadership theory, team management, decision-making,
Total study hours for employee training Hour 1,769,165 communication skills, conflict resolution, and other aspects, providing opportunities for employees at different levels to
develop leadership skills and support their continuous learning and growth. The Company's leadership training program spans
Average annual training hours per employee Hour 45.08
the forward-looking development and enhancement of leadership for senior managers, middle managers, grassroots managers,
Male employees % 96.98% and reserve management personnel. Our training initiatives are designed to assist managers at all levels, as well as the next
Training coverage rate by gender generation of leaders, in understanding organizational strategy, enhancing their management capabilities, and broadening
Female employees % 97.07%
their horizons. Through these efforts, we seek to cultivate leading talents capable of driving the high-quality development of the
Senior management % 97.25% Company while inspiring more young high-potential talents to grow and develop.
Training coverage rate by employee
Middle management % 97.11%
category Strategy-Driven, Talent-First | Leadership Program Framework
Front-line employees % 96.89%
Average training hours per person by Male employees Hour 44.89 High-Potential New Manager New Director Executive
gender Talent Camp Growth Camp Development Camp Leadership Camp
Female employees Hour 45.40
Senior management Hour 47.92
Strategic Role awareness & avoiding Organizational Strategic vision
Average training hours per person by
Middle management Hour 47.45 Thinking pitfalls activation Operation
employee category
Front-line employees Hour 44.97 Influence Goal setting & planning Awareness proficiency
Leadership Delegation & coaching raising Management
Performance evaluation & Business excellence
feedback control Courage for
New Employee Training Team innovation
Effective communication &
The Company provides targeted training for newly hired employees, helping them understand the Company's development and continuous improvement empowerment
various policies and systems through the combination of theory and practice, to quickly integrate into the work environment
and master job skills. The Company also assigns instructors to guide and follow up on employees' learning and progress at
work, supporting them to continuously grow and improve.
Focusing on the knowledge and skills of middle and senior strategic management and leadership,
Case the Company, based on the "Six Leadership Principles" Program, conducts training on strategic
thinking, business development planning, crisis management, team building, decision-making,
Cultivating New Talents in the Workplace Through "Evergreen Program" and other aspects.
DSBJ continues to advance its "Evergreen Program", a dedicated development initiative for fresh graduates. DSBJ's "Six Leadership Principles" Program: DSBJ continues to deliver the "Six Leadership Principles"
Designed for new hires across Group headquarters and all BUs, this program spans multiple growth stages, including training program across all business BUs. In 2025, prioritizing the themes of "Accountability" and "Leading
by Example", this program launched a comprehensive curriculum encompassing integrity education, change
onboarding integration, intensive company-level and group-level training, department-specific tracks, and one-
management, managerial role position and clarity, accountable leadership, and stress management,
on-one mentorship. Among these stages, the intensive group-level training, as follows a "Orientation-Integration-
ensuring a continuous uplift in leaders' management excellence.
Foundation Building-Acceleration-Competency" development pathway, is structured around four pillars: integration, Middle
learning, practice, and culture. The integration pillar helps fresh graduates quickly adapt to the corporate and Senior MFLEX BU's Specialized Management Training: Focused on translating the "Six Leadership Principles"
environment through exhibition hall tours and other similar activities. The learning pillar delivers multi-disciplinary Managers into actionable behaviors, MFLEX launched the special training titled "Management Insights from the
TV Series I Am a Criminal Police". This initiative is designed to rapidly enhance the strategic leadership
courses, including mentor empowerment, workplace communication, and AI applications, to equip graduates with
and accountability of mid-to-senior managers facing complex environments. It effectively galvanizes
job-ready skills. The practice pillar combines role-specific training, mentor-guided coaching, and performance
our management team, reinforcing their resolve to overcome critical challenges and ensure high-quality
feedback to bridge theoretical knowledge with practical execution. And the culture pillar helps graduates understand
delivery.
corporate culture and establish a sense of belonging via executive face-to-face sessions, tech expert dialogues, book-
sharing forums, and job performance reviews. In 2025, a total of 162 fresh graduates participated in the intensive TCTD BU's "Executive Leadership Camp": The TCTD BU has launched the "Executive Leadership Camp"
group-level training under the "Evergreen Program", which effectively improved their professional quality and job program to facilitate training centered on two strategic themes: "Executive Core Competencies" and
"High-Performance Team Development", which is designed to elevate strategic mindsets and sharpen
competence, injecting new vitality into the Company's high-quality development.
management skills.
The Company designs practical and relevant training content tailored to the day-to-day Case
realities faced by frontline leaders, covering team management, crisis handling, goal setting
and execution, and employee motivation, helping them better navigate the various challenges Cultivating Compound Engineers to Facilitate the Integration of Informatization and Industrialization
encountered in their daily work. Under the Company's direction for the integration of informatization and industrialization, the cultivation of versatile
Multek Block Operation Leaders and Reserve Force Training Camp: Conducted separately for team engineers has become a top priority. The Company has built a comprehensive engineer development system. This
leaders and operation leaders, the program encompasses classroom instruction, online learning, framework utilizes a blend of internal and external training, supported by mentorship, project-based learning, and
knowledge application, learning presentations, and recognition of outstanding learners. In 2025, the industry benchmarking, to systematically improve engineers' overall capabilities. In 2025, the P-Manufacturing
"Frontline Leadership Empowerment Training" was conducted in response to production requirements, BU, based on actual business needs, implemented specialized training programs focused on diverse engineering
Grassroots helping improve frontline production management capabilities across teams. competencies from different fields such as systems, project management, frontier AI technologies, and hands-
Managers
P-Manufacturing BU's Frontline Supervisor Training Program: Tailored for grassroots managers, on technical skills. The BU successfully organized 14 specialized sessions, providing growth opportunities for 342
this training program centers on onsite basic management practices encompassing work guidance participants.
and technical coaching for team members, production site management and safety oversight, daily
communication and interpersonal relationship management, and the implementation of company
rules and regulations, in order to empower frontline leaders to achieve a pivotal transformation from
technical experts to team coaches.
Case
Young employees are the future hope of DSBJ. The Company cultivates young talents with leadership DSG Builds a Key Position Training Framework
potential and innovative ability through professional leadership development courses. DSG is committed to refining its key position training framework through tiered learning maps specifically designed
DSG's Structured Leadership Development Program for High-Potential Talent: DSG has implemented for professional lines such as IT, R&D, data science, and cybersecurity. In 2025, DSG systematically executed its key
a structured leadership development program for high-potential talent. By utilizing personality position capability initiative, providing employees in key positions with a robust curriculum featuring BI Training, AI
High
assessments and the 9-box grid potential assessment, DSG systematically identifies and assesses Lab skill training, ISO internal auditor certification, project management and soft skills training. The high-potential
Potential/
talents' growth potential and adopts a multimodal development approach, including one-on-one talents also benefited from one-on-one coaching, in-depth IDP development and project practice. As a result, DSG
Reserve executive coaching, group facilitation, and individual development plans (IDPs), to help trainees achieved 100% training coverage for all identified key positions throughout the year.
Managers navigate complex management challenges, ensuring a robust pipeline of versatile talent with both
strategic foresight and hands-on leadership capabilities.
Professional Position Training
The professional position training aims to enhance employees' knowledge and skills in their professional fields. The Company External Joint Training
has established key position skill matrices and learning maps, providing comprehensive professional training covering various
The Company actively provides external educational resources for employees, introducing high-quality and professional
business areas such as research and development, production, quality, EHS, sales, and human resources to ensure that
training resources internally while supporting employees to participate in external training and learning, so as to help
employees master the latest professional knowledge and technologies and improve core skills and teamwork abilities, so as
employees keep up with the latest developments to broaden their knowledge. In 2025, the Company collaborated with multiple
to better adapt to market changes and meet the development needs of the Company. In addition, the Company emphasizes
external organizations to carry out high-quality training programs to provide employees of different types with the knowledge
general skills training in areas such as digital transformation and AI applications, keeping up with digital transformation trends,
and resources they need.
AI technology advancements, cutting-edge industry dynamics, and updates to information security regulations. Through
specialized course design and practical exercises like the "AI Competition", the Company has comprehensively improved
employees' digital literacy and smart technology application capabilities, providing talent support for corporate innovation and
strategic transformation.
The P-Manufacturing BU, in collaboration with external professional training institutions, has launched two flagship talent Career Advancement
development programs: the "Dongyue Foundation Strengthening Program" and the "Project Management Practical Training
Under the principles of organizational needs prioritization, emphasis on both moral character and performance, orderly promotion,
Camp". The BU systematically conducted a series of specialized review training sessions such as CQI heat treatment, coating,
and promotion and demotion of employees based on their performance, the Company has established internal rules and regulations
and welding, and facilitated IATF 16949 internal auditor certification. These initiatives have continuously sharpened the
such as the Personnel Promotion Management Measures related to career development to continuously improve dual-channel career
professional capabilities and quality mindsets of employees, providing a robust talent foundation for the Company's high-
promotion system, providing employees with diversified career development channels and a broad platform for professional excellence.
quality development.
The Company implements differentiated promotion systems based on different job attributes, and achieves orderly and smooth flow of
talents horizontally and vertically through internal competition, job rotation, etc. In 2025, DSG, relying on the AI skills platform and skills
framework, realized visualized career path management, empowering employees to clearly anchor their skill requirements and navigate
their promotion pathways.
DSG collaborated with Exena Learning Hub to implement "Six Leadership Principles" workshops, systematically enhancing
managerial accountability and proactive execution. In the realm of professional skills, the Company engaged NTUC Learning
Education and Certification Support
Hub for project management courses, BSI for ISO 27001 internal auditor certification training courses, and Eagle Infotech for
advanced Excel skills and language communication training. On the R&D front, DSG deepened its strategic collaboration with The Company advocates the concept of lifelong learning. While encouraging employees to continuously deepen and improve their
Nanyang Technological University (NTU) to deliver specialized practical training in AI, robotics, and data analytics. professional fields, the Company provides sufficient support and guarantees for continuing education and career advancement,
motivating employees to learn continuously to become the most competitive ones in their positions. The scope of re-education support
covers 100% of formal employees.
Employee Development
The Company organizes and implements vocational skill level certifications to provide employees
Aligned with strategic planning and business development trends, the Company continuously refines its competency models to
with opportunities to enhance their operational skills.
organically integrate employees' capability enhancement with career progression and proactively maps out the requirements for each
professional stage, in order to empower employees to achieve sustainable growth throughout their entire career life cycle. Multek BU has established a proprietary in-house certification system covering job types including
Learning circuit graphic makers, printed circuit plating workers, and printed circuit machining workers, and
Resources organizes employees to participate free of charge in skills training and vocational qualification
Talent Inventory and Succession Program and certification. During the reporting period, a total of 108 employees attained senior worker
Platforms certification or above. Those who passed were entitled to certification allowances and matched with
The Company adheres to a talent strategy that prioritizes internal development while selectively recruiting externally. In alignment
corresponding promotion pathways.
with its strategic talent needs, the Company continuously refines its competency models for key positions and integrates them
into performance management, recruitment and selection, and professional development to support the optimization of its talent
management system. The Company conducts periodic talent reviews to assess the pipeline of high-potential employees and key
The Company supports employees to obtain higher education degrees to promote their professional
positions, and continuously advances its succession planning and Individual Development Plans (IDPs) to ensure that successor
development, with front-line supervisors/technicians focusing on upgrading to associate/
capabilities are matched to role requirements, enabling every employee to leverage their strengths in the most suitable role. In 2025, the
bachelor degrees, and engineering technicians focusing on pursuing dual degrees to upgrade to
Company completed a comprehensive five-week leadership talent inventory and successor mapping exercise, employing assessment
bachelor's/master's degrees. Outstanding employees recommended by departments can be offered
processes including interviews, evaluations, and internal calibration sessions to systematically gauge the health of its talent pipeline,
opportunities to pursue academic advancement such as Master of Business Administration (MBA),
and produced a talent data analysis report to provide data-driven support for talent identification, deployment, development, and
Master of Engineering Management (MEM), etc. Each BU formulates degree and vocational skill
retention, as well as talent pipeline optimization.
improvement policies based on its own situation, providing cost reimbursement and one-time
allowances as incentives for employees who obtain degrees, qualifications, or titles.
Constructing a closed-loop management system for successors based on "talent inventory -
DSG implements an education sponsorship policy. Eligible full-time employees can apply for
cultivation - assessment - improvement"
education assistance to pursue formal degrees (bachelor's degree, master's degree, MBA, etc.) and
Funding obtain professional qualification certificates (such as ISO internal auditor, project management, IT
Talent Inventory High-Potential Talent Development Assessment and Improvement and and engineering certifications, etc.).
We have built a comprehensive We develop differentiated develop- We have established a regular as-
Rewards
JDI Electronics establishes the Translation Recognition Criteria to provide exam fee subsidies and one-
competency model and stand- ment and training plans for employ- sessment and continuous coach- time allowance subsidies for employees who meet the required competency standards.
ard system for positions and ees in combination with their actual ing mechanism for successors
Multek formulates the Employee Education Assistance Program (EEAP), which provides education
drawn a capability map for key conditions, and enhance successors' (for example, DSG's quarterly and
funding to employees who participate in relevant external training and academic advancement, if
positions. We also conduct the capabilities through practical courses, annual dual-cycle assessment
they meet the stipulated conditions.
talent inventory and successor mentor guidance, cross-departmental mechanism). By iteratively refin-
review project according to rotations and other mechanisms, so as ing our development framework,
organizational development to build a tiered management talent we ensure that successors' growth
needs to accurately identify reserve from the grassroots manage- trajectories and capability en-
The Company adopts a flexible study leave policy, allowing employees to utilize their vacation to
high-potential talents. ment to senior management. hancements are perfectly aligned
Flexible complete professional certifications or continuing education without affecting work progress, thus
with our business requirements.
Study supporting employees in achieving their further education goals.
Leave
Compensation and Incentives Performance Evaluation and Appeals
To attract, motivate, and retain outstanding talents, the Company continuously improves the employee compensation and incentive The Company cascades its annual strategic and operational objectives down to departments, teams, Female employees account for
system to ensure that all employees receive compensation commensurate with their work performance. and positions at all levels, which ensures seamless alignment among organizational, departmental,
and individual performance, effectively operationalizing the corporate strategy. To ensure the
fairness, impartiality, and objectivity of performance evaluation results, the Company promotes each
BU to establish the annual performance assessment plan that aligns with its actual circumstances
based on the Performance Evaluation Management Measures and related rules and regulations. Newly hired female
A standardized performance evaluation mechanism is established, with regular performance employees account for
Diversified Incentives assessments conducted through multi-dimensional and multi-tiered reviews to comprehensively
Based on the "3P+1M" (Position, Person, Performance, and Market) compensation philosophy, the Company formulates a scientific
evaluate employees' work performance and competencies. For example, the performance evaluation
of the P-Manufacturing BU, which covers employee self-assessment, superior rating, departmental
and reasonable compensation and incentive program in accordance with the DSBJ Assessment and Incentive Distribution Regulations rating and grading, and center-level calibration, etc., has realized an objective, comprehensive and
and other related compensation and incentive institutional frameworks. The Company has established the Assessment and Incentive scientific evaluation of employees. DSG has implemented a dual-cycle performance framework Female employees in all
Management Committee, which is chaired by the CEO, to review key assessment and incentive systems to ensure that employees receive consisting of mid-year and year-end evaluations, which includes self-assessments, supervisor reviews management positions
fair and competitive compensation. and behavior-based appraisals anchored in corporate values and core competencies. In 2025, 100% (including reserve
of the Company's workforce received regular performance and career development reviews. management talents, middle
The Company's employee compensation structure consists of fixed salary, performance pay, variable bonuses, and subsidies, in which
managers, and senior
the variable compensation is closely linked to performance evaluation results. The variable compensation of senior managers is related Attaching great importance to performance communication and results feedback, the Company managers) account for
to the Company's performance with the aim of encouraging them to bear more responsibilities in the Company's development. The supports employees in understanding performance requirements and participating in goal setting
compensation structure of common employees includes a variable component that is linked to factors such as company performance,
organizational performance, and individual performance, with the aim of fully mobilizing employees' enthusiasm for work. Through
and result review. We will provide comprehensive feedback to the evaluated personnel in a timely
manner when their evaluation is completed, ensuring that the evaluated personnel have a more
diverse incentive mechanisms, the Company has formed a comprehensive incentive distribution plan including instant incentives, short- comprehensive understanding of their strengths and weaknesses, expectations and gaps. For
term incentives, and long-term incentives, which deeply integrates employees' interests with the Company's interests to establish a employees whose performance does not meet the position standards or who are temporarily Female employees in junior
symbiotic win-win relationship between employees and the organization. unqualified for the job requirements, a personal performance improvement plan (PIP) will be management positions
launched in a timely manner to clarify the direction of improvement with necessary support, and account for
their improvement will be tracked in the subsequent assessment cycle. For example, Mutto Optronics
has embedded performance improvement triggers into its performance evaluation mechanism,
placing employees ranked in the lowest performance tier for three consecutive months into a
performance improvement plan (PIP) to assist them in enhancing their skills and improving their
work performance. Employees may file appeals to immediate supervisors or the HR department Female executives account for
Material immediate rewards include monthly performance bonuses, individual rewards, team at a higher level according to the Company's performance complaint and feedback process if
rewards, etc. they have any disagreement or lack clarity on performance evaluation results after receiving the
feedback on the results. When an appeal is submitted by an employee, the designated personnel will
Immediate Non-material immediate incentives include honorary awards, recognition, public communicate with the employee to understand the situation and timely deal with the appeal with
incentives commendation, etc. feedback provided, so as to ensure procedural effectiveness and timely resolution. Female employees in
management positions
with revenue-generating
Diversity and Equal Opportunity functions account for
The performance-driven salary adjustment strategy is adopted, according to which the salaries
of employees with outstanding performance are increased regularly each year.
DSBJ has integrated diversity and inclusion philosophy into team building, corporate operations,
and cultural development. The Company prioritizes attracting talent with diverse backgrounds and
Short-term helping them adapt to the surroundings, providing equal opportunities and expansive development
Quarterly and annual bonuses are paid based on performance results. Female employees in STEM-
incentives platforms for all employees. By fostering respect, inclusivity, and open communication, the Company
enhances employees' collaborative efficiency and innovation capabilities. The Company upholds related positions (including R&D,
principles of equality and fairness across talent development, compensation and benefits, career technology, etc.) account for
advancement and other aspects. Management actively values and incorporates diverse perspectives
Retention bonuses are provided for key and high-potential employees with outstanding to build a diversified and vibrant workforce team. The Company encourages employees to provide
feedback on violations of diversity and inclusion principles through various channels and collects
performance.
reasonable suggestions for continuous optimization and improvement of the Company's related
Long-term Ethnic minority employees
Programs such as employee stock ownership plan are implemented for core backbone policies and measures.
account for
incentives employees. To deepen employees' understanding of diversity and cultivate an inclusive workplace, the Company
organizes training and diversity activities that involve all employees annually based on our diversity
policies, so as to enhance multicultural integration for higher team efficiency. At the same time,
the Group, in coordination with various BUs, conducts in-depth workshop training on multicultural
awareness to help employees gain a deeper understanding of behavioral differences and values Employees with
in different cultural backgrounds through interactive forms such as situational simulations, cross- disabilities account for
cultural communication case studies, and cultural sensitivity training. so as to enhance their cross-
cultural collaboration capabilities. All BUs customize cross-cultural training programs tailored to their
own business characteristics and team composition, ensuring that the training is closely integrated
with actual work scenarios. Through these initiatives, we effectively transform multicultural concepts
into practical business tools, further enhancing organizational cohesion and global competitiveness.
The Company strictly complies with the Law of the People's Republic of China on the Protection of Women's Rights and Interests and
the Special Provisions on Labor Protection for Female Employees , ensuring that female employees are provided with equal career Case
development opportunities and compensation and benefits, for which employees should be paid equally for equal work regardless
of their gender, and with unbiased training and promotion pathways to encourage and nurture them to take up key and managerial Diversity Practice by Chaoyi Thailand Factory of Multek BU
positions for exploring and expanding more possibilities for career development. The Company conducts regular pay equity reviews
across its major operational sites to eliminate gender pay gaps and ensure the full implementation of equal pay for equal work. In In 2025, Chaoyi Thailand T1 Factory of Multek BU actively promoted cross-cultural management by establishing an in-depth
addition, we provide comprehensive workplace rights and welfare for female employees, including but not limited to paid prenatal communication platform designed to catalyze dialogues between Chinese and Thai colleagues and developing a harmonious
check-up leave, maternity leave, paternity leave, breastfeeding leave, childcare leave, lactation rooms for breastfeeding female and mutually beneficial working atmosphere rooted in deep respect for local cultural heritage. It organized special Thai
employees, regular distribution of benefits for International Women's Day, health seminars addressing women-specific wellness topics language and cross-cultural training courses, equipping Chinese employees with more cross-cultural communication skills
and other activities that care for female employees, in order to ensure that female employees can work with peace of mind and comfort. through language learning and cultural understanding. By leveraging cultural milestones such as Thailand's Songkran
During the reporting period, the Company had 1,333 employees on parental leave, with a 100% return-to-work rate. Festival and the Chinese Mid-Autumn Festival as strategic touchpoints, it provided more communication and interaction
between Chinese and Thai employees through special team-building activities to enhance team cohesion. Furthermore,
The Company actively drives inclusive employment for persons with disabilities by providing job opportunities, configuring accessible it hosted communication meetings with Thai employees regularly, where management championed the concept of "de-
facilities, and enhancing communication, thereby broadening the career development path for employees with disabilities. Therefore, layering and equitable dialogue" and promptly provided feedback and response to employees' career aspirations, in order
disabled employees can win social respect and realize their self-worth through their own efforts. Multek BU launched the Care Program to create an open and inclusive communication culture. Through warm interactions such as the year-end "Christmas and
for Disabled Employees in 2018. This program is intended to provide professional job matching and pre-employment training. Every New Year gift exchange", Chaoyi Thailand T1 Factory created a caring and respectful corporate culture atmosphere, which
year, Multek BU conducts activities such as "Employee Communication Meetings" and "Outdoor Expansion Activities" to help employees can provide the essential "soft power" to underpin DSBJ's steady global expansion.
with disabilities quickly adapt to the work environment and perform their jobs competently. By the end of 2025, Multek BU had recruited
comprehensive support for the employment of employees with disabilities. By implementing customized job role development
and workplace adaptation, alongside the construction of an accessible residential environment, we are actively championing equal
opportunities for employment and effectively facilitating the integration of these employees into the workforce.
Case
JDI Electronics' Inclusive Employment Project
All employees of the CCL dustproof clothing ultra-cleaning plant under JDI Electronics are employees with intellectual
disabilities. The CCL provides the same wages and benefits as ordinary employees to these employees with intellectual
disabilities, and sets up emergency shower rooms and other special facilities dedicated to them. Meanwhile, the CCL also
allocated instructors to guide and educate them and train their skills from multiple aspects. In addition, the CCL strengthens
communication with the families of employees with intellectual disabilities, creates employee growth profiles for them, and
conducts regular summaries and discussions of special education to help them grow up in a comprehensive manner and
Communication and Interaction between Chinese and Thai Teams
have a self-reliant life like ordinary people. During the reporting period, CCL employees, representing the city of Suzhou,
achieved distinguished honors at the 19th National Special Olympics Day that was organized by the Provincial Disabled
Persons' Federation, securing three gold and three bronze medals.
Vibrant Workplace
Cross-Cultural Management With great attention to human care for employees, the Company advocates for a balance between life and work and provides
comprehensive welfare benefits for all employees to enhance employees' sense of belonging and happiness.
With the acceleration of the business internationalization process, DSBJ is speeding up the implementation of international talent training
and cross-cultural integration programs to cultivate international talents with effective communication, resource mobilization, and
problem-solving abilities overseas. The Company continuously refines its globally standardized management documents, significantly In addition to statutory benefits, the Company provides employees with additional commercial insurance, paid
reducing internal communication friction and enhancing cross-border operational synergy. We strengthen cross-cultural team building and leave, high-temperature allowances, health examination, holiday gifts, free work meals, shuttle buses, flexible
international cultural exchange through multicultural integration activities and global project collaboration to deepen employees' cross- working hours, and remote office options. During the reporting period, Multek BU began to provide employees
Welfare with fully-paid parental leave and single-child care leave while DSG increased the number of annual leave days
cultural understanding, so as to lay a solid foundation for high-performance collaboration across our multinational teams.
benefits
for non-management positions and introduced more flexible welfare allowances.
Case
We pay attention to special employee groups such as pregnant women, disabled individuals, families in difficulties
The Cross-Cultural Talent Development Program of the P-Manufacturing BU and retired employees, actively offering them economic assistance, diversified welfare benefits, and care and
Employee
warmth to create a warm and loving corporate atmosphere. In 2025, we assisted 839 employees in need.
To support the strategic international expansion following the acquisition of the GMD Group in France, the P-Manufacturing
care
BU launched the Cross-Cultural Talent Development Program in September 2025 to specifically empower BU executives
and mission-critical personnel within overseas liaison functions. At the end of October, a flagship workshop themed "Cross- We held diverse employee activities, including team building, recreational and sports activities, employee
Cultural Awareness" was inaugurated, which, integrated with tailored digital learning modules, systematically enhanced the birthday parties, family days, and holiday events, to help employees relax and regulate their physical and
communication and management competencies of key personnel in a multicultural environment. These efforts provided Employee mental state. We also provided health lectures and consultations and other health support to help employees
strong support for the efficient collaboration of multinational teams. activities relieve work pressure and to jointly create a harmonious and healthy work atmosphere.
Indicators and Targets
Indicators and targets Achievement in 2025
We aim to comprehensively strengthen core
Targets achieved
competencies and professional capabilities of
The Company spent a total of RMB 6.1659 million on employee training,
all employees, ensuring workforce development
achieving a 97.02% training coverage rate and delivering an average of
maintains strategic alignment with corporate ob-
jectives.
Targets achieved
ee performance reviews.
opment reviews
Community Construction
Dinner & Dance Retro Night
The Company's sustainable development is closely intertwined with the stability and prosperity of society. The Company
actively fulfills its corporate social responsibility by participating in philanthropic, public welfare, and volunteer activities,
prioritizing the hiring of residents in the communities where it operates to support local economic development, and giving
back to local communities through concrete actions.
Annual Employee Birthday Party Family Day Activities Retiree Activities
DSBJ was awarded the honorary title of "Contributing to
In 2025, the Company's external
Education and Public Welfare" by the Zhuhai Doumen
public welfare donations
Employee Satisfaction Management
District Working Committee for the Care of the Next
amounted to Generation
To comprehensively understand employees' workplace experiences and perceptions, the Company conducts annual employee
satisfaction surveys covering different dimensions such as work environment, career development, compensation and benefits,
and corporate culture. For dimensions with lower satisfaction, we have formulated improvement plans, which will serve as
important references for the optimization of organizational management. The Company continuously monitors and analyzes
RMB 6.778 million
Multek Industries was awarded the
"2024 Charity Outstanding Contribution Award" by the
Zhuhai Doumen District Charity Promotion Association
employees' satisfaction trends to continuously optimize their experiences. In 2025, the majority of employees showed favorable
attitudes towards the Company, with employee satisfaction ranging from 81% to 89% at the Company's main operating sites.
For problems reflected in the survey, the Company formulated and promoted improvement plans, and continuously tracked
the implementation effect. For example, DSG launched and implemented a series of improvement measures in 2025, including
reward system upgrades, enhanced benefits, office space expansion, and supervisor performance communication training,
The P-Manufacturing BU MFLEX BU's Love Charity The TCTD BU conducted
which formed an effective closed-loop management.
carried out a mountain Association organized a book volunteer activities for the
Risk and Opportunity Management
cleaning campaign and clothing donation drive elderly
With priority on human capital risk management, DSBJ systematically identifies, assesses, addresses, and monitors human
capital risks aligned with strategic objectives. The Company conducts comprehensive analyses of internal and external factors
that may harm human capital development in order to identify key risk areas including but not limited to talent attrition,
shortage of key talents, poor performance management, inadequate training and development, lack of competitive or
equitable compensation and benefits, legal compliance issues, and organizational culture risks. To address these risks, we have
developed a talent development strategy aligned with the Company's strategic planning and business development direction,
according to which the key initiatives include enhancement of compensation competitiveness, establishment of a full-cycle
career growth support system and optimization of HR management processes across talent attraction, cultivation, utilization,
and retention. Through these initiatives, we can ensure that human capital development risks remain controllable while
stabilizing workforce continuity and improving organizational performance with the assistance of a risk monitoring mechanism. DSG organized volunteer activities to visit the elderly and donated The TCTD BU participated in the Xuebao Children's Care Charity
care gift packages Donation Project
Appendix Energy Use and GHG Emissions2
Indicators Unit 2024 2025
Key Performance Table Gasoline tonnes 82.42 83.89
Diesel tonnes 56.16 67.86
Corporate Governance and Economic Performance Natural gas m3 6,914,644.40 8,463,979.37
Economic Performance Purchased electricity kWh 915,239,602.84 932,930,760.67
Total energy consumption tce 121,882.54 126,136.60
Indicators Unit 2024 2025
Solar/PV Consumption kWh 39,323,394.00 20,359,903.70
Operating income RMB 0.1 billion 367.70 401.25
Direct GHG emissions (Scope 1) tCO2e 15,525.31 18,767.79
Net profit attributable to shareholders
RMB 0.1 billion 10.86 13.86
of the listed company Indirect GHG Emissions (Scope 2,
tCO2e 557,930.063 568,714.59
Market-Based)
Basic earnings per share RMB/Share 0.64 0.79
Total GHG Emissions (Scope 1 and
tCO2e 573,455.374 587,482.38
Scope 2, Market-Based)
Corporate Governance
GHG Emission Intensity (Scope 1 and
tCO2e /RMB10,000 of revenue 0.15605 0.1464
Scope 2, Market-Based)
Indicators Unit 2024 2025
Proportion of female directors % 11.1% 9.09% Note 2: Scope 1 GHG emissions are direct emissions from the Company's consumption of gasoline, diesel, and natural gas, while Scope 2 GHG emissions
are indirect emissions from the electricity purchased by the Company. Scope 1 GHG emission factors are referenced from the GHG Protocol developed
Proportion of independent directors % 33.3% 36.4% by WRI and WBCSD, the Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and
Removals (ISO 14064-1:2018), and the General Principles for Calculation of Total Production Energy Consumption (GB/T 2589-2020) issued by the
State Administration for Market Regulation and the Standardization Administration of the PRC, among other international and national guidelines. The
Business Ethics and Anti-Corruption
Scope 2 GHG emission is calculated according to the accounting method in the Announcement on the Release of 2023 Electricity CO2 Emission Factors
(Announcement [2025] No. 47) jointly issued by the Ministry of Ecology and Environment and the National Bureau of Statistics.
Notes 3, 4, 5: The Scope 2 GHG emission for 2024 is calculated according to the accounting method in the Announcement on the Release of 2022
Indicators Unit 2024 2025 Electricity CO2 Emission Factors jointly issued by the Ministry of Ecology and Environment and the National Bureau of Statistics. For 2025, the method
has been uniformly updated to that in the Announcement on the Release of 2023 Electricity CO2 Emission Factors, adopting the "market-based" method
Proportion of directors participating in for calculation. For 2024, the previously reported indirect GHG emissions (Scope 2) were 491,117.57 tCO2e; the total GHG emissions (Scope 1 and Scope 2)
% 100% 100% were 506,642.88 tCO2e. Accordingly, the previously reported GHG emission intensity (Scope 1 & 2) was 0.1378 tCO2e per RMB 10,000 of revenue.
anti-corruption training
Proportion of employees participating
% 100% 100% Water Resource Usage
in anti-corruption training
Average anti-corruption training hours Indicators Unit 2024 2025
Hour 3 3
per employee
Total water intake tonnes 8,754,913.91 9,901,341.41
Total water consumption tonnes 2,448,769.54 2,907,396.72
Environmental Performance
Water consumption intensity tonnes/ RMB 10,000 of revenue 0.6660 0.7246
Environmental Management
Indicators Unit 2024 2025
Emissions and Waste
Environmental protection investment 1
RMB 0'000 25,458.42 13,067.20
Indicators Unit 2024 2025
Coverage rate of environmental training
% 100% 100%
in main operation locations Compliance rate of "three wastes" emissions % 100% 100%
Note 1: Expenditure decreased in 2025, primarily due to the significant investment in environmental protection facilities in 2024, with current-year Total wastewater discharge volume tonnes 6,041,113.37 6,997,064.69
spending focused on routine maintenance.
Indicators Unit 2024 2025 Indicators Unit 2024 2025
Volatile organic compound emissions tonnes 24.25 14.41 Number of overseas suppliers / 509 610
Nitrogen oxides (NOx) emissions tonnes 20.42 21.91 Number of suppliers certified by quality
/ 2,747 3,210
management system
Sulfur oxides (SOx) emissions tonnes 1.90 3.81
Number of suppliers certified by occupational health
Particulate matter (PM) emissions tonnes 8.94 12.57 / 990 1,108
and safety management system
Amount of generated non-hazardous waste tonnes 41,554.93 38,506.07 Number of suppliers certified by the environmental
/ 1,163 2,081
management system
Amount of recycled non-hazardous waste tonnes 38,489.08 26,111.68
Number of suppliers who have passed responsible
Amount of generated hazardous waste tonnes 31,851.18 35,506.72 / 2,149 1,902
mineral due diligence
Amount of recycled hazardous waste tonnes 21,357.41 32,102.57
Employee Responsibility
Social Performance Indicators Unit 2024 2025
Total Employees Person 23,515 39,245
R&D Innovation
Percentage of female executives % 17.80% 15.51%
Indicators Unit 2024 2025
Employee discrimination incidents Event 0 0
R&D investment RMB 0.1 billion 12.67 14.32
Total number of employee training participants Participant 472,821 497,368
Proportion of R&D investment over revenue % 3.45% 3.57%
Total study hours for employee training Hour 1,118,601 1,769,165
Employee training coverage rate % 100% 100%
Average annual training hours per employee Hour 47.57 45.08
Customer Rights and Interests
Indicators Unit 2024 2025
Occupational Health and Safety
Customer complaint response rate % 100% 100%
Indicators Unit 2024 2025
Customer complaint resolution rate % 100% 100%
Incidence of occupational diseases % 0 0
Number of employees who died due to work-related
Person 0 0
injuries
Supply Chain Management
Indicators Unit 2024 2025
Social Welfare
Total Number of Suppliers / 5,040 4,375
Indicators Unit 2024 2025
Number of suppliers in China (including Hong Kong,
/ 4,531 3,765
Macao, and Taiwan) Public Welfare Donation Investment RMB 0'000 718.66 677.80
Index of Indicators GRI Content Index
Usage statement: The Company has prepared this report in accordance with GRI
Guidelines for Self-regulation of Listed Companies No. 17 - Sustainable standards for the reporting period from January 1, 2025 to December 31, 2025.
Development Report (Trial) , the Shenzhen Stock Exchange
Report Chapter GRI 1: Foundation 2021
Disclosure requirements Corresponding section of this report
Report Preparation Instructions 2-2/2-3
Addressing Climate Change Addressing Climate Change
Message from the CEO 2-22/2-23
Pollutant Emissions Pollution Prevention and Ecosystem Protection
About DSBJ 2-1/2-2/2-6/2-16/201-1
Waste Treatment Pollution Prevention and Ecosystem Protection
Sustainable Development Management 2-12/2-13/2-14/2-16/2-22/2-29/3-1/3-2/3-3
Ecosystem and Biodiversity Conservation Pollution Prevention and Ecosystem Protection
Strengthening the Foundation of Governance to Advance the Path to High-Quality Development
Environmental Compliance Management Environmental Management
Corporate Governance 2-9/2-10/2-11/2-12/2-15/2-17/2-27/207-1/207-2/207-3/405-1
Energy Utilization Addressing Climate Change
Business Ethics and Anti-Corruption 2-23/2-27/2-28/3-3/205-2/205-3/206-1
Water Resource Utilization Resource Utilization and Circular Economy
Digital and Intelligent Transformation 203-2
Circular Economy Resource Utilization and Circular Economy
Information Security and Privacy Protection 2-27/3-3/418-1
Rural Revitalization No related work has been carried out in 2025
Social Contribution Community Construction Fostering Partnerships to Build a Resilient and Sustainable Supply Chain
Driven by Innovation Driven by Innovation / 2-27/3-3/204-1/308-1/308-2/407-1/408-1/409-1/414-1/414-2
Technology Ethics Driven by Innovation Upholding Excellence to Enhance Product Quality and Competitiveness
Fostering Partnerships to Build a Resilient and Sustainable Driven by Innovation 2-6/3-3
Supply Chain Security
Supply Chain
Quality First 2-27/3-3/416-1/416-2/419-1
Fostering Partnerships to Build a Resilient and Sustainable
Equal Treatment of Small and Medium-Sized Enterprises
Supply Chain Professional Services 2-25/2-27/3-3/417-1/417-2/417-3
Product and Service Safety and Quality Quality First / Professional Services Embracing Eco-Efficiency to Accelerate a Clean and Low-Carbon Production System
Data Security and Privacy Protection Information Security and Privacy Management Environmental Management 2-23/2-27
Labor and Human Rights Management / Human Capital Addressing Climate Change 3-3/201-2/302-1/302-3/302-4/305-1/305-2/305-4/305-5/305-7
Employees
Development
Resource Utilization and Circular Economy 303-1/303-3/303-4/303-5
Due Diligence Materiality Analysis
Pollution Prevention and Ecosystem Protection 303-2/304-2/305-6/305-7/306-1/306-2/306-3/306-4/306-5
Communication with Stakeholders Communication with Stakeholders
Prioritizing People to Co-create a Shared and Prosperous Future
Anti-commercial Bribery and Anti-corruption Business Ethics and Anti-Corruption
Anti-Unfair Competition Business Ethics and Anti-Corruption 2-23/2-27/2-30/3-3/401-1/401-2/401-3/403-1/403-2/403-3/403-5/403-
Labor and Human Rights Management
Voluntary disclosure of topics Corresponding section of this report
Human Capital Development 2-27/3-3/401-2/403-3/403-6/404-1
Fostering Partnerships to Build a Resilient and Sustainable
Responsible Minerals
Supply Chain Community Construction 203-1/203-2
Suzhou Dongshan Precision Manufacturing Co., Ltd.
DSBJ Stock Code: 002384
Address: Building 12#, Yunhe Town Headquarters Industrial
Park, No. 99 East Taihu Road, Wuzhong District, Suzhou
Phone: 0512-80190019
Email: dsbj@dsbj.com
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