Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
About This Report
This report is the third Environmental, Social and Governance (ESG) report released by Gree
Preparation Basis
Electric Appliances, Inc. of Zhuhai. It focuses on the Company's proactive response to the
opportunities and challenges of sustainable development, as well as its efforts to create Prepared in accordance with the Standards for Sustainability Reporting (GRI Standards) of the Global
integrated economic, social and environmental value for stakeholders. Reporting Initiative (GRI), the United Nations Sustainable Development Goals (SDGs), the Self-Regulatory
Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial
Implementation) and the Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen Stock
Exchange—Compilation of Sustainability Report, this report also addresses the key topics covered by MSCI
Scope of the Report ESG Ratings.
Unless otherwise stated, the organizational scope of this report covers Gree Electric
Appliances, Inc. of Zhuhai and its subsidiaries and branches.
Data Sources
The qualitative and quantitative information contained in this report is derived from the public
Time Period disclosures, internal documents and relevant statistical data of Gree Electric Appliances. The
disclosure scope is consistent with the scope of the consolidated financial statements. Any content
The report covers the period from January 1 to December 31, 2025. To enhance the that differs from this scope will be clearly explained in the report. Unless otherwise specified, all
comparability and completeness of the report, appropriate retrospective or extended monetary amounts in the report are denominated in Renminbi (RMB).
disclosure is applied to certain information.
Access to the Report
Appellation Notes
The electronic version of this report is available on the Company's official website (http://www.gree.
For the convenience of presentation, "Gree Electric Appliances, Inc. of Zhuhai" is referred to com.cn/), the website of the Shenzhen Stock Exchange (http://www.szse.cn/) and CNINFO (www.
as "Gree Electric Appliances", "GREE", "the Company" or "we" in this report. cninfo.com.cn).
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Message from the Management The Company promotes green collaboration across the industrial chain and actively fulfills corporate social
responsibilities. During the reporting period, the Company has continuously advanced the coordinated improvement
of sustainable development capabilities along the industrial chain, and has built a safe, resilient, green and
sustainable industrial ecosystem. Meanwhile, the Company actively engages in social welfare undertakings. In
Against the backdrop of accelerated global green transition in 2025, guided by the vision of "Building a response to emergencies such as the earthquake in Tingri County, Xigaze City, Xizang and the fire at Wang Fuk
World-Class Enterprise and Making GREE a Century-Old Brand" and the mission of "For the Clearer Sky Court in Tai Po, Hong Kong, the Company made emergency donations of materials and funds and responded
and Greener Earth", Gree Electric Appliances integrates the philosophy of sustainable development into swiftly to post-disaster reconstruction work. It has grown into a trusted key force in society.
its corporate culture and drives transformation through independent innovation. Over the past year, the
Company has carried out extensive ESG practices and has achieved remarkable results, which would not We implement the dual-carbon strategy, further advance green transformation, and consolidate
have been possible without the diligent efforts of all employees, the long-term commitment of investors, the foundation for ecological sustainable development.
the collaborative progress of partners, and the understanding and support from all sectors of society. We
Faced with the challenges of global climate change, the Company incorporates green and low-carbon
hereby extend our sincerest gratitude to all parties concerned.
development into its corporate strategy, builds a circular development model across the entire industrial chain,
and undertakes ecological and environmental responsibilities with concrete actions. As of the end of the
reporting period, the Company has operated 22 green factories (including 10 national-level green factories)
We improve corporate governance, respond to investors' concerns, and consolidate the and 6 national-level green supply chain enterprises.
foundation for the enterprise to achieve steady and sustainable long-term development.
In terms of product R&D, centering on energy conservation, emission reduction and green transformation,
The Company standardizes the operation of the Board of Directors to consolidate the foundation for compliant
the Company continuously promotes the implementation of technologies in fields such as product energy
operation. During the reporting period, the Company has continuously optimized the operational mechanism
efficiency improvement, system-level energy saving and low-GWP refrigerant replacement. The Company has
of the Board of Directors, revised the Articles of Association and relevant internal management systems,
successively overcome technical bottlenecks including "1Hz inverter" and "permanent-magnet synchronous
strengthened compliance and risk management, and solidified its business foundation. Directors performed
inverter". It also integrates air conditioning technology with photovoltaic and energy storage technologies and
their duties diligently and faithfully with standardized and transparent decision-making procedures, and the
launches zero-carbon source air conditioning technology. During the reporting period, leveraging the research
attendance rate of Board meetings stood at 100%.
achievements on "key technologies for wide-range, high-efficiency AI multi VRF systems", the Company's
The Company strengthens investor communication to enhance corporate governance transparency. Gree products realize real-time energy efficiency perception and dynamic regulation, and have won the Special
Electric Appliances has maintained Grade A in the annual information disclosure assessment of the Shenzhen Prize for Scientific and Technological Progress in Energy Conservation and Emission Reduction from the
Stock Exchange for five consecutive years. Meanwhile, during the reporting period, the Company has China Energy Conservation Association.
responded to 522 inquiries on the SZSE Interactive Easy Platform, ranking first in the home appliance industry
In terms of industrial chain layout, the Company earnestly implements the Extended Producer Responsibility
in terms of response volume. It has organized on-site investor visits to leading smart factories and other
(EPR) system and establishes a closed-loop system covering "R&D – Production – Sales – Recycling –
projects, transparently and intuitively showcasing the achievements of intelligent manufacturing and innovation
Regeneration". As of the end of the reporting period, the Company has set up 6 renewable resource bases
in China. It effectively addresses investors' concerns to provide strong support for long-term value creation.
nationwide and has created an integrated service model of "delivering new products and recycling old ones".
By virtue of the full-industry-chain closed-loop model, it drives the green and circular development of the
We uphold the people-oriented principle, deepen industrial chain collaboration, and pool joint
home appliance industry. During the reporting period, the Company has been awarded the title of "2025 EPR
efforts for sustainable development.
Responsibility Fulfillment Innovation Pioneer Enterprise".
The Company attaches importance to employee care and development to realize the common growth of
employees and the enterprise. In terms of employee care, the Company provides staff dormitories with a Looking ahead, Gree Electric Appliances will always adhere to the mission "Made in China, Loved by the
comfortable environment and complete supporting facilities, and runs GREE School to resolve the schooling World", uphold innovation-driven and green development, and continuously enhance its core competitiveness
issue of employees' children. In terms of employee growth, the Company offers AI-enabled training to support and sustainable development capabilities.
the joint development of employees and the enterprise.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
About Gree Electric Appliances
Gree Electric Appliances, Inc. of Zhuhai is a diversified, technology- Research Center, a National Industrial Design Center, a National Enterprise for Quality for seven consecutive years, and has topped the China
driven global industrial group. It owns brands including GREE, TOSOT, Technology Center, and a Robotics Engineering Technology R&D Center. National Institute of Standardization's customer satisfaction assessment
KINGHOME, Landa, Kaibang and Xinyuan, with an industrial layout It serves as a research and evaluation base for refrigeration equipment for air conditioning products for sixteen consecutive years, securing dual
covering both consumer and industrial sectors. At present, GREE products by the National Notification and Enquiry Center, as well as a national recognition from the market and industry authorities.
serve more than 190 countries and regions worldwide. The Company standard verification point for energy-efficient refrigeration equipment. As
adheres to serving users with core technologies and high quality, of the end of the reporting period, the Company has filed a cumulative In terms of channels, the Company deepens an efficient and collaborative
continuously meeting people's aspirations for a better life. total of 138,935 patent applications, including 76,928 invention patent network. The Company is committed to building a self-controlled,
applications with 32,317 granted. It is the only home appliance enterprise mutually beneficial, online-offline integrated channel system, continuously
In terms of brand, the Company demonstrates its position as an industry that has ranked among China’s top 10 in granted invention patents for innovating its new retail marketing system, and developing a nationwide,
benchmark. The Company has successively received honors such as ten consecutive years. It has obtained 50 "world-leading" technologies highly efficient and collaborative three-dimensional sales and service
"China World Famous Brand", "Most Market-Competitive Brand", "National in total; it has won 2 National Technological Invention Awards, 2 National network. For offline channels, the Company has formed a physical network
Quality Award", "Export Inspection Free Enterprise", "China Brand Science and Technology Progress Awards, 3 China Patent Gold Awards, covering 30 regional sales companies, over 20,000 sales stores and more
Innovation Award", "Top 100 Chinese Light Industry Enterprises in Science 4 China Design Gold Awards, 16 Gold Medals of International Exhibition than 30,000 professional service outlets, and has completed the upgrading
and Technology", and "Top 500 Chinese Enterprises in Credit". During the of Inventions of Geneva, and 13 Gold Awards of International Exhibition of or renovation of over 1,000 "Dong Mingzhu Healthy Home" offline stores.
reporting period, the Company has once again been listed in the Forbes Inventions Nuremberg. Through scenario-based experiences, data visualization and intelligent
Global 2000, ranking 346th; it has been awarded the title of "2025 EPR interaction, it comprehensively showcases whole-house healthy home
Responsibility Fulfillment Innovation Pioneer Enterprise". According to the In terms of quality, the Company upholds a total quality excellence model. appliances such as refrigerators, washing machines and water purifiers,
"2025 China Brand Value Evaluation" released by the China Council for Adhering to the quality policy of "Pursuing Best Quality, Establishing an providing consumers with one-stop healthy home solutions. For online
Brand Development and China Appraisal Society, Gree Electric Appliances International Brand, and Building a Century-Old Enterprise", the Company channels, relying on self-built platforms, official flagship stores on third-
has achieved a brand value of RMB 202.14 billion, ranking second always prioritizes quality and deepens the implementation of the PQAM party e-commerce platforms, and new media matrices such as WeChat
in the light industry group and first in the home appliance industry. Its Perfect Quality Assurance Model, achieving strict quality control across and Douyin, the Company achieves multi-platform, wide-reaching digital
comprehensive brand strength and leading industry position continue to be design, procurement, production and service. It refines a GREE-specific marketing coverage.
consolidated. "Perfect Quality" management system centered on the "Five-Step Quality
Prevention Method" and "D-CTFP Quality Technology Innovation Cycle". GREE will continue to uphold its corporate vision of "Building a World-
In terms of R&D, the Company builds outstanding technological capabilities. In March 2021, the Company took the lead in launching a "10-Year Free Class Enterprise and Making GREE a Century-Old Brand". Guided by Xi
The Company adheres to independent R&D of core technologies, Warranty" policy for residential air conditioners, setting the longest Jinping Thought on Socialism with Chinese Characteristics for a New Era,
implements an "unlimited R&D investment as needed" policy, and has warranty commitment in China's household air conditioning industry the Company will remain true to its original aspiration and keep its mission
established a multi-level R&D system supported by national-level scientific and leading the upgrade of industry service standards. As of the end of firmly in mind. It will stay rooted in the real economy, adhere to the path of
research platforms. It has the world's largest air conditioning R&D center, the reporting period, the Company has consecutively received the dual independent innovation, and contribute to the progress of human society
comprising 1 academician workstation, 16 research institutes, 152 research highest honors of "Enterprise Market Quality Credit AAA Grade" and "User through innovation, responsibility, and green development. Ultimately,
institutions and 1,411 labs. It houses a National Engineering Technology Satisfaction Benchmark Five-Star Enterprise" from the China Association GREE aims to be a globally trusted brand, joining hands with the world to
create a better future.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Corporate Culture
Corporate Vision Corporate Mission Corporate Spirit Core Values
Build a world-class enterprise and Carry forward industrial spirit, Loyal, Friendly, Talk Less and Do More;
make GREE a century-old brand pursue perfect quality, provide Diligent, Enterprising Quality First for Customer Satisfaction;
professional service. Made in Loyal, Friendly, Diligent, and Enterprising;
China, loved by the world! Honest Business for Win-win Situation;
Legal Compliance and Integrity;
Dedication and Innovation;
be Solidaristic and Cooperative,
be Open and Tolerant.
Quality First for Customer Satisfaction
Honest Business for Win-win Situation GREE's "Fairness Principles and Code of Conduct"
Trustworthiness Fairness Principles
Be fair Be open Be dedicated
Talk Less and Legal Compliance
Pragmatism Probity
Do More GREE's and Integrity
"Pragmatic"
Culture Code of Conduct
Be truthful, Be principled,work Be committed,
work for real for good work for success
Loyal, Friendly, Diligent, Dedication and
Courtesy Innovation
and Enterprising Innovation
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Economic Performance Corporate Governance Business Ethics
Total operating revenue Net profit attributable to Number of General Number of Board Anti-commercial bribery and anti-corruption
the parent company Meetings of meetings held training sessions
RMB RMB Shareholders held
Total cash dividends Cash dividend per 10 Attendance rate of Proportion of
Coverage rate of directors and employees in anti-
(tax included) shares (tax included) Board members independent directors
commercial bribery and anti-corruption training
on the Board
RMB RMB
Number of Signed Integrity Commitment Letters
Innovation and R&D
R&D investment R&D investment as a percentage Proportion of R&D personnel
RMB of operating revenue among total employees
Cumulative number of Among which authorized Cumulative China Patent Major liability accidents Product recall incidents
authorized patents invention patents Awards
Number of domestic and foreign Among which international Cumulative number Complaint resolution Customer satisfaction
standards led or participated in and foreign standards of "world-leading" rate rate
formulation and revision technologies
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Employee Management Supply Chain Management
Coverage rate of employees under collective contracts Number of suppliers surveyed on Total traced smelters and refineries Among which RMAP-certified proportion
conflict minerals
Listed on the
Environmental Management Climate Change Tackling
Forbes 2025 World's Best
Cumulative number Including national-level Total greenhouse gas Year-on-year reduction
Employers of green factories green factories emissions
tons of CO2 equivalent
Employee Training
Electronic Waste Management Energy Management
Total employee training hours
over Waste electrical and electronic products recycled Newly built photovoltaic Total installed photovoltaic
and disposed power capacity capacity of the Group
million hours
million sets/units MW MW
Average training hours per capita
Converted into recycled copper, iron, aluminum Photovoltaic power Carbon emission
over
and plastic materials generation reduction achieved
tons of CO 2 equivalent
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Brand Honors
Enterprises in Science and Technology
"Top 100 Chinese Global Brands Index"
People's Daily Overseas Edition & GYBrand
Forbes China National Light Industry Council
Global Brand Research Institute
Innovation Pioneer Enterprise
Forum – ESG Practice Case
Forbes and Recycling Technology Conference on Annual Conference Corporate
Electrical and Electronic Products ESG Development Forum
Product Honors
Bronze Medal of International
Gold Medal of International Exhibition Silver Medal of International Exhibition of
Exhibition of Inventions Geneva 2025
of Inventions Geneva 2025 (High- Inventions Geneva 2025 (Key Technology
(GREE High-efficiency Intelligent
speed Direct-drive Double-beam Gantry and Application of Reversible Airflow
Control Constant Temperature &
Machining Center GA-FMD3020) Central Air Conditioning)
Humidity Unit for Museums)
World Intellectual Property Organization, World Intellectual Property Organization, World Intellectual Property Organization,
Swiss Federal Government Swiss Federal Government Swiss Federal Government
Gold Award of the 77th International
Technology Progress Award of the China Technological Progress in Energy
Exhibition of Inventions Nuremberg
National Light Industry Council (GREE Conservation and Emission Reduction
(GREE Air-cooled Range Hood)
Honour Floor Standing Unit) from the China Energy Conservation
Association (GMV9 Zhiyue VRF Units )
Organizing Committee of the International
China National Light Industry Council
Exhibition of Inventions Nuremberg China Energy Conservation Association
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
ESG Management
Stakeholder Identification and Communication
Gree Electric Appliances actively carries out communication with various stakeholders, collects the requirements and
expectations of stakeholders through various channels, and realizes common development with them.
Government Department and
Major Stakeholders Shareholder and Investor Customer Partner Employee Society and the Public
Regulatory Authority
• Occupational health and
safety
• Customer relation
• Law-abiding and compliant • Occupational training and
management
• Law-abiding and compliant operation development
• Product quality and safety • Adherence to business
operation • Intellectual property protection • Protection of employees' • Responding to national
• Product and service ethics
• Transparent disclosure • Transparent disclosure rights and interests strategies
Concerned Topics accessibility • Industry exchange and
• Improving corporate governance • Risk management • Employee communication • Practicing social
• Product maintenance and development
• Adherence to business ethics • Improving corporate governance and democratic responsibility
replacement • Supply chain management
• Addressing climate change • Adherence to business ethics management
• User feedback and
• Technological innovation • Employee care
suggestions
• Diversity and equal
opportunity
• Inspection by leaders and
competent authorities • General Meeting of Shareholders
• Compliance patrols and • Investor exchange meetings • Email
• Official hotline
inspections • Online performance briefing • Training and induction • Telephone
• Service mini-programs • Selection assessment
• Regular meetings with local • Shenzhen stock exchange easy training • Company announcement
• Brand official accounts • Procurement process
Communication government representatives interaction Q&A • Email and suggestion box • Social network platform
• E-commerce platform online • Performance evaluation
Methods and • Forums, conferences and • Investor hotline • Regular meeting • Company website
• Customer email and • Regular communication
Channels seminars • Company research • Employee performance • Social media
correspondence with business partners(e.g.,
• Daily policy implementation • Telephone consultation evaluation • Charitable donations and
• Customer satisfaction survey emails, meetings)
• Carrying out carbon footprint • Email • Employee activities voluntary services
• Customer visit
verification, energy conservation • Regular reports and information • Community activities
and emission reduction disclosure on official website
• Developing clean energy
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Material Topics Analysis Double Materiality Matrix of Gree Electric Appliances in 2025
During this reporting period, we orderly carried out the research on material topics based on High
the process of "stakeholder communication – topic identification – topic evaluation – materiality
Law-abiding and compliant operation Safety and quality of
determination", so as to effectively respond to the expectations and demands of various stakeholders Stakeholder products and services
communication Customer service optimization
and continuously improve our ESG management practices. Transparent disclosure Innovation-driven
Rural Revitalization Energy Improving corporate governance development
utilization
Social contribution
We maintained regular communication with investors, customers, Circular economy Waste treatment
Management of Addressing climate change
government agencies, and employees, among other stakeholders. conflict minerals Data security and customer privacy protection
Impact materiality
Stakeholder We recorded the topics and specific content of different stakeholders' Anti-commercial bribery and
anti-corruption Anti-unfair competition
Communication concerns and responded to their demands. Protecting investors' Employee
rights and interests
Environmental compliance management
Equal treatment of Due diligence Supply chain management
Based on the Self-Regulatory Guidelines No. 3 for Companies Listed small and medium-
sized enterprises
on Shenzhen Stock Exchange—Compilation of Sustainability Report, Ecosystem and biodiversity protection
the United Nations' 17 Sustainable Development Goals (SDGs), Pollutant discharge
"GRI Standards", mainstream ESG ratings, national policies, industry Water resources utilization
Topic Identification benchmarking, and the results of stakeholder communications, we
identified 26 topics highly relevant to the Company.
In 2025, the Company conducted research on environmental, social, and
Low Financial materiality High
corporate governance topics among multiple internal departments, fully
Topic Evaluation listening to their opinions and feedback on the topics.
Governance Social Environmental
compliant operation 15 customer privacy
Innovation-driven Water resources
Based on research findings from internal and external stakeholders, we Improving corporate development utilization
Customer service Supply chain
conducted double materiality analysis from the two dimensions of impact 3 Transparent disclosure
optimization management
Addressing climate
materiality and financial materiality, and developed a double materiality Anti-unfair competition Rural revitalization 17 Social contribution 22
Protecting investors' Management of conflict Equal treatment of
matrix to define the key topics disclosed this year. Our management 5 13 18 small and medium-
Environmental
rights and interests minerals 23 compliance
comprehensively evaluated and finalized the double materiality topics sized enterprises
Anti-commercial Safety and quality of management
Materiality 6 14
by integrating our development strategy, stakeholder interviews and bribery and anti- products and services 24 Circular economy
Determination corruption
communications, external inquiries and feedback, as well as industry 7 Due diligence
Ecosystem and
development trends. 8
Stakeholder 26
biodiversity protection
communication
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Corporate Governance Standard Operation of the Board of Directors
and Special Committees
The convening, holding and voting procedures of the Company's Board of Directors and Board of
The Company strictly abides by the Company Law of the People's Republic of China, the Securities
Supervisors strictly comply with the Company Law of the People's Republic of China and other laws
Law of the People's Republic of China and other laws, regulations and regulatory requirements. It
and regulations, as well as the relevant provisions of the Company's Articles of Association, ensuring
continuously improves the corporate governance system with the Board of Directors as the core,
that corporate governance operates in accordance with laws and regulations in an orderly and efficient
clarifies the responsibilities and boundaries of various governance bodies, and standardizes decision-
manner.
making and supervision mechanisms.
Directors and senior management of the Company continuously strengthen their compliance
awareness and regularly participate in compliance training organized by regulatory authorities, the
Shenzhen Stock Exchange and internal institutions, so as to continuously improve the standardization
of duty performance and risk prevention capabilities. During the reporting period, the Company held
Corporate Governance Structure Chart 6 meetings of the Board of Directors and reviewed 31 proposals. All incumbent directors achieved a
and transparent decision-making procedures.
General Meeting of Shareholders
During the reporting period, the Company
Election Report
Board of Directors
Held reviewed
Establish Report
Appoint, Supervise, Guide
Board of Directors meetings proposals
Special Committees of the Board of Directors
Audit Committee
Report
Held Held Held
Remuneration and Evaluation Committee
Nominating Committee 4 meetings 3 meetings of 3 meetings of
of the Audit the Remuneration the Nominating
Committee and Evaluation Committee of
Supervise and Guide Report
of the Board Committee of the the Board of
of Directors Board of Directors Directors
Senior Management
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Remuneration Management for
Diversity of the Board of Directors Directors and Senior Management
A diversified Board composition helps introduce different professional perspectives and enhance the scientificity and robustness In accordance with the Company Law of the People's Republic of China, the
of the Board's decision-making. In the selection and appointment of directors, the Company attaches importance to the rational Securities Law of the People's Republic of China, the Code of Governance for
combination of gender structure, professional background and work experience. The professional fields of the incumbent directors Listed Companies and the Articles of Association of Gree Electric Appliances,
cover corporate governance, financial management, legal compliance, home appliance, among others. Many directors boast Inc. of Zhuhai, and in light of the Company's actual conditions, the Company
extensive experience in fields such as enterprise management and capital market practice. As of the end of the reporting period, has formulated the Remuneration Management System for Directors and Senior
the Company's Board of Directors consists of 10 directors, including 4 independent directors (40%); and 1 female director (10%). Management. By establishing a scientific and effective incentive and restraint
mechanism, the system ensures that directors and senior management perform
their duties in accordance with the law. The remuneration of directors and senior
management consists of basic salary, performance-based salary and medium-
Independent Director Education
Name Gender Age Professional Background to long-term incentive income. In principle, performance-based salary accounts
or Not Background
for no less than 50% of the total amount of basic salary and performance-
Non-independent based salary. The Company links the remuneration of the management
Dong Mingzhu Female 71 Master's degree Home appliance industry expert
director team to sustainable development performance, with assessment indicators
Non-independent covering quality management, work safety, compliance management and
Zhang Wei Male 49 Bachelor's degree Home appliance industry expert
director other dimensions. Through incentive and restraint mechanisms, the Company
Non-independent consolidates management responsibilities, strengthens risk prevention and
Zhang Jundu Male 65 Junior college Home appliance industry expert
director implementation, and underpins the Company's high-quality and sustainable
Non-independent
development.
Shu Lizhi Male 56 Master's degree Home appliance industry expert
director
In the event that directors or senior management breach their duties and cause
Non-independent losses to the Company, or are at fault for illegal or non-compliant acts such as
Zhong Chengbao Male 40 Master's degree Home appliance industry expert
director
financial fraud, misappropriation of funds, or irregular guarantees, the Company
Zhang Qiusheng Independent director Male 58 Doctor Accounting expert
shall, depending on the severity of the circumstances, reduce or suspend the
payment of unpaid performance-based salary and medium- to long-term incentive
income, and recover in full or in part any performance-based salary and medium-
Cheng Ming Independent director Male 66 Doctor /
to long-term incentive income already paid during the period in which the relevant
acts occurred.
Li Hongqi Independent director Male 63 Doctor /
Weng Guomin Independent director Male 62 Doctor Legal expert
Shao Liguo Employee director Male 47 Master's degree /
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Investor Communication Shareholder Returns and Dividends
The Company conducts information disclosure and investor engagement activities to deepen While advancing its steady development, the Company always prioritizes rewarding shareholders.
communication with investors and improve corporate governance capabilities, while effectively Since its listing in 1996, the Company has raised a total of RMB 5.269 billion through equity financing,
safeguarding investors' rights and interests and further delivering corporate value to the market. and distributed cumulative dividends exceeding RMB 188.7 billion (including the 2025 annual dividend),
among which cumulative cash dividends exceeded RMB 158.7 billion, and the cumulative amount of
Investor Relations Management share repurchases reached approximately RMB 30 billion. During the reporting period, the Company's
total cash dividend distribution amounted to RMB 16.755 billion, including: (1) Interim cash dividend
In accordance with the Company Law of the People's Republic of China, the Securities Law of the distribution for 2025 of RMB 5.585 billion (tax included); (2) Proposed annual cash dividend distribution
People's Republic of China, the Guidelines for Investor Relations Management of Listed Companies, for 2025 of RMB 11.170 billion (tax included, subject to review and approval by the Company's General
and the Self-Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange— Meeting of Shareholders).
Standardized Operation of Listed Companies on the Main Board, the Company has formulated the
Investor Relations Management System to standardize investor relations management and promote
the sound development of the securities market and the Company itself.
Information Disclosure
The Company responds promptly to investors' concerns through multiple channels including The Company strictly complies with the Measures for the Administration of Information Disclosure by
performance briefings, the SZSE Interactive Easy Platform, investor hotlines and dedicated email Listed Companies, the Self-Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock
addresses. Meanwhile, it organizes investor communication activities and on-site corporate visits and Exchange—Standardized Operation of Companies Listed on the Main Board, and the Self-Regulatory
research as appropriate, enabling investors to gain in-depth insight into the Company's operating Guidelines No. 5 for Companies Listed on Shenzhen Stock Exchange—Administration of Information
conditions, business layout and development strategies, thus fostering long-term trust with investors. Disclosure Affairs. In accordance with internal rules such as the Information Disclosure Management
Measures, the Company has established and improved its information disclosure mechanism to ensure
disclosed information is true, accurate, complete and timely. It fulfills information disclosure obligations
During the reporting period, the Company
in accordance with the law, guarantees investors' fair access to corporate information, and upholds the
openness, fairness and impartiality of market order. As of the end of the reporting period, the Company
Held Held
has been rated Grade A in the annual information disclosure assessment by the Shenzhen Stock
Exchange for five consecutive years.
General Meetings performance briefing
of Shareholders
During the reporting period, the Company
Answered Received more than
Issued Issued
Interactive Easy Platform hotline calls
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Risk Management Risk and Opportunity Management Mechanism
The Company continuously improves its compliance, internal control To effectively supervise ESG-related risks1 of the Company, the Company systematically carries out the
and risk management system. Risk prevention and control, compliant identification, monitoring and review of risks and opportunities based on established and operational
operation and internal control serve as an important foundation for management systems covering quality, environment, occupational health and safety, information
ensuring the steady operation and high-quality development of the security, privacy protection, business continuity, supply chain security, anti-bribery and business ethics. It
Company. Through a clear governance structure and institutionalized continuously pays attention to and responds to the expectations and requirements of stakeholders.
management mechanism, the Company promotes the effective
implementation of risk management requirements in operation and At the specific operational level, the Company formulates the Risk Factor Prompt List and the Risk
management. Assessment Standard tailored to its development stage. All internal departments at the headquarters
and holding subsidiaries shall conduct risk identification, assessment and prevention in accordance
In compliance with the Company Law of the People's Republic of China with unified requirements, quantify and prioritize risks with a consistent caliber, and formulate a Risk
and relevant laws and regulations, the Company has formulated and Assessment Information Form. The internal control working group regularly organizes all units to update
implemented institutional documents including the Measures for Risk and risk assessment results, supervises and inspects the implementation of risk management, and promotes
Opportunity Management, the Internal Control System of Gree Electric the continuous optimization and improvement of the risk management system.
Appliances, Inc. of Zhuhai, and the Internal Audit System of Gree Electric
Appliances, Inc. of Zhuhai. These documents clearly stipulate internal Internal Control Implementation and Audit Supervision
control objectives, management responsibilities, audit supervision and
In accordance with the Basic Specifications for Internal Control of During the reporting period, the total assets of units included in the
risk identification procedures, so as to safeguard the safety and integrity
Enterprises and its supporting guidelines, the Company continuously internal control evaluation scope accounted for over 90% of the total
of corporate assets and improve operational efficiency.
advances internal control and compliance evaluation, clarifies the assets in the Company's consolidated financial statements, and
division of responsibilities among the Board of Directors, Audit operating revenue also accounted for over 90% of consolidated total
In terms of governance structure, the Board of Directors has set up an
Committee, Board of Supervisors and management in internal control, revenue. In response to issues identified in audits, the Company
Audit Committee to supervise and evaluate the Company's internal control.
closely integrates internal control with daily operations, and realizes has established a closed-loop rectification mechanism of "issue
Meanwhile, the Company establishes an Audit Department to conduct
closed-loop operation of risk management. identification, responsibility assignment, corrective action supervision,
supervision and inspection and effectiveness verification". Through systematic audit supervision
on business activities, risk In 2025, adhering to the principles of "risk-based, comprehensive and internal control optimization, the Company continuously improves
业务连续性管理体系认证证书
management and the operation 证书编号：ZRC25BCMS-020025R0L
兹 证 明
coverage, and focus on key areas" and targeting "strengthening the quality of internal control operation and audit efficiency.
internal control, preventing risks and improving dual efficiency", the
珠海格力电器股份有限公司
of internal control systems, 统一社会信用代码：91440400192548256N
注册地址：珠海横琴新区汇通三路 108 号办公 608
审核地址：中国广东省珠海市香洲区金鸡路 789 号
forming an internal control and Company formulated its annual audit plan based on sufficient research Meanwhile, the Company engages a third-party professional institution
经评审，组织的管理体系符合
GB/T 30146-2023/ISO 22301:2019《安全与韧性 业务连续
性管理体系 要求》标准的要求
risk management mechanism 证书覆盖范围：
空调、制冷制（热）设备的研发、制造和销售所涉及的
业务连续性管理活动
and scientific risk assessment. It carried out special audits, economic annually to conduct an independent assessment of the compliance
with clear responsibilities 发证日期：2025 年 11 月 24 日 有效期至：2028 年 11 月 23 日
responsibility audits and operation management audits, covering key and effectiveness of the internal control system. It dynamically
and coordinated operation. businesses including procurement, production, sales, finance, capital improves the internal control system in light of changes in internal
The Company has obtained construction and asset management, and conducted comprehensive and external environments, organizational structure adjustments
the ISO 22301 Business audits of subsidiaries and branches on a regular basis to further and updated management requirements, supporting the steady
Continuity Management System Business Continuity Management deepen group-based management and control. development of the enterprise with a more adaptive management and
Certification. System Certification control mechanism.
Specific major risks and ESG-related risks that have a material impact on the Company's financial condition will be further disclosed in the relevant subsequent
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Business Ethics
The Company adheres to the basic principles of integrity, law-abiding and honest operation. It takes business ethics, anti-commercial bribery, anti-corruption and anti-unfair competition as important components of
the corporate governance system, and continuously improves institutional development, organizational support and supervision mechanisms to prevent operational risks and maintain a fair and transparent business
environment. The Audit Committee of the Board of Directors serves as the top governing body for business ethics and anti-corruption, coordinating relevant management requirements and supervision arrangements.
Code of Business Ethics and Anti-Unfair Competition Responsible Marketing
Conduct In market competition, the Company strictly abides by the Anti- The Company adheres to the principle of responsible marketing in
Unfair Competition Law of the People's Republic of China, market promotion and information disclosure. It strictly complies
The Company has formulated and implemented the Code of Business the Anti-Monopoly Law of the People's Republic of China, with the Advertisement Law of the People's Republic of China
Ethics and Conduct of Gree Electric Appliances, which clarifies basic applicable EU competition laws and other relevant laws and and other relevant laws and regulations as well as internal review
requirements on honest operation, integrity in practice, anti-commercial regulations, and conducts business activities in accordance with systems, and implements standardized management of advertising,
bribery, prevention of conflicts of interest and other aspects. This laws and regulations. Through internal institutional constraints promotion activities and external communication content to
Code applies to all employees of the headquarters and all subordinate and compliance management, the Company regulates market ensure information is true, accurate and compliant. The Company
subsidiaries (branches). The Company also advocates that suppliers, competition practices and prevents risks of unfair competition, has established unified management requirements and labeling
contractors and other partners support, follow and implement relevant monopoly and other acts that disrupt market order, so as procedures for product identification, and integrates identification
requirements during cooperation, and jointly abide by applicable laws and to maintain a fair and orderly market environment. During standards into production and launch processes to ensure product
regulations as well as recognized environmental, social and governance the reporting period, the Company had no lawsuits or major and service information meets regulatory requirements and
standards. administrative penalties arising from unfair competition practices. industry standards. During the reporting period, the Company had
no major violations in product and service information disclosure,
Anti-Commercial Bribery and Anti-Corruption identification use, or market promotion (including advertising, sales
The Company strictly abides by laws and promotion and sponsorship).
regulations including the Interim Provisions
on Prohibiting Commercial Bribery, and has
反贿赂管理体系认证证书
During the reporting period, the Company
formulated the Anti-Corruption and Anti- 证书编号：ZRC25FHL-20002R0L
兹 证 明
珠海格力电器股份有限公司
Bribery Policy of Gree Electric Appliances,
统一社会信用代码：91440400192548256N
注册地址：珠海横琴新区汇通三路 108 号办公 608
审核地址：中国广东省珠海市香洲区金鸡路 789 号
Inc. of Zhuhai. It maintains a zero-tolerance
经评审，组织建立的管理体系符合：
ISO37001：2025 《企业反贿赂管理体系 要求》
no major violations in product and
标准的要求
stance toward commercial bribery and Recorded
认证范围：
no litigation or major
空调、制冷制（热）设备的研发、制造和销售所涉及的反贿赂管理活动
corruption, upholds the Fairness Principles Had
service information disclosure, label application,
发证日期：2025 年 11 月 26 日 证书到期日期：2028 年 11 月 25 日
and Code of Conduct, and achieves administrative penalties arising
and market promotion (including advertising,
full coverage without forbidden zones, from unfair competition practices
investigating every case and punishing all sales promotion and sponsorship)
corruption. The Company has obtained the Anti-Bribery Management
ISO 37001 Anti-Bribery Management System System Certification
Certification.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Business Ethics Audit and Supervision
The Company integrates business ethics development, anti-commercial For risk identification, the Company adopts an annual self-
bribery management into its internal control and audit supervision system, inspection and reporting mechanism for integrity practice.
Reporting Channels
and conducts ongoing supervision over the implementation of relevant Self-inspections are conducted item by item against relevant
policies. In accordance with the Code of Business Ethics and Conduct of integrity provisions to identify potential commercial bribery and
President Mailboxes: More than 30 President mailboxes
Gree Electric Appliances and the Anti-Corruption and Anti-Bribery Policy corruption risk points. Based on the likelihood and impact of
are set up in various departments, canteens, gate posts
of Gree Electric Appliances, Inc. of Zhuhai, the Audit Department regularly risks, the Company defines key focus areas, providing a basis for
and factories for employees to file complaints and reports
audits the implementation of business ethics codes by all internal institutions subsequent supervision and rectification.
in real time.
at all levels, holding subsidiaries and relevant business activities across the
Integrity Complaint Email: jiancha@cn.gree.com The Company provides training on business ethics and anti-
full scope of operation.
Complaint Hotline: 0756-8669807 commercial bribery for all employees (the Company has no part-
Upholding compliant operation and embracing the core philosophy of time employees) and contractors, and incorporates integrity
integrity and self-discipline, the Company conducts regular evaluation on requirements for professional conduct into regular training and
the implementation effect of relevant policies in light of the operational Integrity Culture Construction disciplinary education programs. The training covers codes of
characteristics of different business sectors, combined with the operation of business ethics, integrity risk alerts, and interpretation of typical
The Company clarifies the responsibilities and obligations of
internal control, the authenticity and completeness of financial information, cases, aiming to continuously enhance employees' compliance
employees in integrity and compliance operation by signing
and integrity risks existing in key positions and critical business links. It awareness and risk prevention capabilities.
the Integrity Commitment Letter to strengthen individual self-
identifies potential business ethics risks, regards links with concentrated
discipline and accountability. During the reporting period, the
risks as key audit priorities, and promotes problem rectification and
Company extended integrity commitment requirements to senior
institutional optimization. By integrating audit supervision with internal control During the reporting period, the Company
management, middle-level cadres and staff in key positions.
improvement, the Company continuously enhances the effectiveness and
Relevant personnel signed the Integrity Commitment Letter on an
standardization of business ethics governance.
annual basis. They made clear commitments to abide by integrity
Conducted
Whistleblower Protection standards and fulfill integrity management responsibilities. This
The Company establishes a Discipline Inspection and Supervision Office and
formulates institutional documents including the Measures for Management
institutional approach consolidates individual accountability and
prevents violations and corruption risks at the source. 33 sessions of anti-commercial
bribery and anti-corruption training
of Discipline Inspection and Supervision and the Measures for Management
The Company continuously promotes integrity culture by combining
of Reporting. These documents clearly define disciplinary responsibilities,
discipline education with risk prevention and control. It organizes
workflow, and requirements for accepting, investigating and handling reports,
self-inspections and themed publicity activities on integrity practice Achieved a
providing institutional basis for standardized and orderly operation of relevant
around key festivals such as New Year's Day, Spring Festival, Mid-
work. The Company offers multi-channel reporting avenues for employees
Autumn Festival and National Day. Through system promotion and coverage rate of
and stakeholders to ensure smooth information submission.
case warnings, it strengthens employees' understanding of integrity directors and employees in anti-
To protect the legitimate rights and interests of whistleblowers, the Company requirements. During the reporting period, the Company issued commercial bribery and anti-corruption
specifies withdrawal and protection clauses in its systems, keeps the identity a total of 30 issues of integrity briefings and 3 issues of discipline training
information and content of whistleblowers confidential, and strictly prevents inspection and supervision briefings, continuously sending a clear
retaliation, creating a sound environment for bold and law-based supervision. signal of strict management.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Strengthening Innovation through Intensive R&D
Gree Electric Appliances adheres to the development strategy of "independent R&D of core technologies" and has established a scientific research management mechanism of "investment on demand with no upper limit",
providing institutional guarantee for the continuous technological innovation. The Company promotes R&D and achievement transformation around strategic directions, and simultaneously incorporates intellectual property
protection into the innovation management system. Through institutional construction, organizational allocation and practical implementation, it supports the standardized management and value realization of technological
achievements. Efforts on this have been gradually integrated into product planning, R&D management and business operation processes, becoming an important foundation for the Company's long-term development.
Governance
The Company's R&D and innovation work is overall coordinated and Pyramid System of Scientific Research Platforms
managed by the management, with dedicated departments including
research institutes and labs undertaking relevant tasks. In addition, the
Company has set up an R&D innovation management department to
realize the efficient allocation of R&D resources and give play to the
National Energy-saving and Environment-friendly Refrigeration
synergistic effect of R&D achievements. The Company has formulated
Equipment Engineering Technology Research Center
and implemented systems such as the Project Operation Management National Industrial Design Center
Measures and the Product Development Management Measures, which National Enterprise Technology Center
systematically standardize key links including project initiation, development 4 national- National Notification and Enquiry Center Research and
level research Evaluation Base
procedures and achievement transformation. Institutional requirements are
platforms
embedded throughout the whole process of innovation activities to improve
the standardization and enforceability of innovation management. Through
the coordinated operation of organizational structure and institutional 1 academician Motor and Control Academician Workstation
systems, the Company continuously strengthens the overall planning workstation
capability and implementation efficiency of R&D and innovation, accelerates
the transformation and application of innovation achievements, and
Two Home Appliances Technology
Institutes
Refrigeration Technology Institute
Health Technology Institute
Mechanical and Electrical
Technology Institute
Motor System Technology Institute
Equipment Power Technology
Institute
Communication Technology Institute
Washing Technology Institute
Internet of Things Technology
Institute
Building Environment and Energy
Conservation Institute
New Energy Environment
Technology Institute
Intelligent Equipment Technology
Institute
Robots Technology Institute
Freezing and Refrigeration
Technology Institute
Materials Institute
Electrical Engineering and Electrical
continuously fuels the development of business operations. 16 research institutes
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Strategy
Through materiality identification of topics, this topic is identified as financially material to the Company. To strengthen the management of this topic, the Company analyzes potential risks and opportunities it may
face in this regard and formulates corresponding response measures.
List of R&D Innovation Risks and Opportunities
Risk Name Specific Description Impact Period2 Response Measures
Strengthen the research and judgment of cutting-edge
The industry is experiencing an accelerated rate of technological upgrading. If some technological routes or products
technologies, lay out multiple technological routes in parallel,
are replaced, it may lead to an extension of the return cycle of existing R&D investment, phased increase in R&D Medium Term
Technology improve the prudence of R&D decisions, and reduce the
costs and impact on project investment recovery.
Iteration Risk investment risk of a single route.
Strengthen the independent R&D capability of core components,
Intensified industry competition and technological homogenization may weaken the differentiated advantages of
Medium Term promote the layout of high-value patents, and enhance
Core Technology products, exerting certain pressure on product gross profit margin and market share.
technological barriers and product differentiation.
Competition Risk
Standards for energy efficiency, environmental protection, and safety continue to rise. If products fail to adapt in Track changes in domestic and foreign laws, regulations and
Short Term,
a timely manner, it may lead to increased rectification costs, slower product launch schedule or restricted sales, standards in advance, incorporate compliance requirements into
Technology Medium Term
affecting the revenue and cost structure. the R&D stage in advance, and improve product adaptability.
Compliance Risk
Opportunity Name Specific Description Impact Period Response Measures
With the continuous advancement of the national "carbon peaking and carbon neutrality" policy, demand for high- Strengthen the R&D of technologies such as energy-saving air
energy-efficiency, low-carbon products and system solutions is growing, which helps increase the sales volume and Medium Term, conditioners, heat pumps, low-GWP refrigerants and AI energy-
Low-Carbon product premium of energy-saving products, supporting the optimization of the operating income structure and the Long Term saving control, and promote the large-scale application of related
Technology improvement of cash flow. products.
Opportunity
Demand for smart home appliances and systematic solutions is increasing, which helps improve product added Lay out in directions such as smart chips, smart home platforms
Medium Term,
value and customer stickiness, form differentiated competitive advantages, and support revenue growth and and building digital intelligence systems, and promote the
Intelligent Upgrade Long Term
profitability improvement. coordinated development of products and system-level solutions.
Opportunity
Promote the R&D of technologies related to healthy home
Demand for health-related products is growing, which helps expand product categories and application Medium Term,
appliances, improve the product matrix, and strengthen market
Health Consumption scenarios, supporting the scale of income and business diversification. Long Term
promotion and channel layout.
Opportunity
“Short-term” refers to within one year after the end of the reporting period; “medium-term” refers to one to three years after the end of the reporting period; and “long-term” refers to more than three years after the end of the reporting period.
These time horizons correspond to different cycles of technology maturity, commercialization of R&D outcomes, and the development of long-term competitiveness.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
R&D Innovation Strategy System and Direction
To systematically advance R&D innovation management, the Company has established and continuously improved an R&D innovation strategic framework centered on "One Core, Two Chains, Three Foundations,
and Four Outcomes". This framework provides an overall design for the governance logic, operational mechanisms, and value objectives of the Company's innovation activities from four dimensions—conceptual
guidance, activity operation, organizational support, and outcome orientation—thereby offering an institutional foundation for technological R&D, commercialization of achievements, and innovation practices.
Core R&D Innovation Strategy
Core R&D Innovation Strategy
"One Core" Referring to the conceptual system, an abbreviated expression of "adhering to independent innovation and implementing a leader strategy".
"Two Chains" Referring to the activity system, an abbreviated expression of the "innovation chain and sustainable value chain".
Innovation Full-staff quality
chain R&D internationalization Design universality Lean manufacturing Automated mass production engagement
Activity
system
Sustainable
value chain Green purchasing Sustainable manufacturing Win-win marketing Demand creation
Referring to the organizational system, an abbreviated expression of the three fundamental supports: "high-level technological innovation platforms, comprehensive innovation
"Three Foundations"
management mechanisms, and a high-quality R&D talent team".
Referring to the achievement system, an abbreviated expression of four outcomes created by GREE through innovation practices: "a self-transcending innovation culture, a
"Four Outcomes" sound R&D system, leading core technologies and standards, and a comprehensive product system".
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Low-carbon Strategy
Key Technologies and Applications of Wide-range Industrialization of "Key Technology Research and
With a focus on energy conservation, emission reduction, and Efficient AI Multi VRF Systems Based on Real-time Application of Multi-Dimensional Intelligent Temperature-
green transformation, the Company continues to advance the Performance Humidity-Freshness Control Air Conditioners"
implementation of technologies in areas such as product energy
efficiency improvement, system-level energy saving, and low-GWP The relevant technologies focus The Company conducts R&D centered on
refrigerant substitution. on R&D in real-time energy- zoned cooling and heating supply, integrated
efficiency perception, refrigerant humidification and fresh air regulation, and
regulation, and AI-driven decision- cloud-edge collaborative intelligent control
Innovation in Energy-Saving Technology
making, and have been applied technologies, which have been applied to
By continuously promoting technological innovation
and enhancing the high efficiency and energy saving to commercial multi-split system residential air-conditioning products. According
of equipment, the Company has gradually overcome products. According to disclosed to disclosed project data, the comfort level within
technical challenges such as "1 Hz variable frequency" project data, the system's APF human activity areas has been significantly
and "permanent magnet synchronous variable (Annual Performance Factor) improved, with the vertical air temperature
frequency", integrated air-conditioning technology with
reached 6.45, with an average difference controlled below 0.1°C and the CO2
PV and energy storage, and launched "zero carbon
source" air-conditioning technology. energy-saving rate exceeding concentration reduction rate increased by 22%,
Special Prize for Scientific
and Technological Progress GREE Honour
Special Prize for Scientific and in Energy Conservation and intelligent air-conditioning products. In 2025, the Floor Standing Air
Upgrade of System Energy Efficiency
Technological Progress in Energy Emission Reduction from the project received the First Prize of the Science Conditioner
The Company's dynamic energy-efficiency optimization
Conservation and Emission China Energy Conservation and Technology Progress Award of the China
algorithms enable technological upgrades from
Reduction from the China Energy Association
equipment-level and system-level energy saving to National Light Industry Council.
long-term operational energy conservation. Leveraging Conservation Association in 2025.
research outcomes related to the "key technologies for
wide-range, high-efficiency AI multi-split systems", the
Company's products deliver real-time energy efficiency Self-developed Products Included in the Catalogue of
perception and dynamic regulation, winning the Self-developed Products Included in the Recommended
Energy-saving, Carbon-reduction and Environmentally-
Special Prize for Scientific and Technological Progress Catalogue of Energy-saving and Carbon-reduction
Technologies and Equipment in the Industrial and friendly Products (Technologies) of the Chinese
in Energy Conservation and Emission Reduction from Association of Refrigeration
the China Energy Conservation Association. Information Technology Sector
The Company's independently developed key technologies for
The Company's independently developed rotary four-cylinder
Application of Environmentally Friendly Refrigerant photovoltaic-storage DC air-conditioning systems, air-cooled
positive-displacement liquid refrigerant pumps, high-efficiency air-
In response to global environmental protection intelligent dual-circulation air-conditioning units for equipment
conditioning systems based on low-carbon dynamic operation
initiatives and the Montreal Protocol and its rooms, and a new generation of parallel high-efficiency variable
amendments, the Company continues to promote and separate cooling/heating supply, and air-source high-
frequency modular units have been included in the Recommended
the application of low-GWP refrigerants such as R32 efficiency intelligent cooling/heating station systems have been
Catalogue of Energy-saving and Carbon-reduction Technologies
and R290, and the related technologies have been included in the Catalogue of Energy-saving, Carbon-reduction and
implemented in products including air conditioners, and Equipment in the Industrial and Information Technology Sector
Environmentally-friendly Products (Technologies) of the Chinese
heat pump water heaters, dehumidifiers, and (2025 Edition), supporting technological upgrading and large-scale
Association of Refrigeration.
refrigeration and cold-storage equipment. equipment renewal in key industries.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Intelligence Strategy Health Strategy
Focusing on product intelligence, system interconnectivity, and Focusing on air health, water health, and food health, the Company applies related technologies across a wide range of products
intelligent manufacturing, the Company continues to advance and usage scenarios.
technology application and platform development.
Air Health Water Health Food Health
Targeting building and park scenarios, the Company has
At the Technologies for sterilization, The "dual-core six-stage fine filtration Relevant freshness-preservation
established the "Taishan" Building Digital Intelligence
system bacteriostasis, and formaldehyde system" has been deployed in water and cooking control technologies
level Platform, supporting coordinated control of electromechanical removal have been incorporated purification products, alongside the have been applied to refrigerator
systems and optimization of energy efficiency. into air conditioners and introduction of whole-home water and kitchen appliance products.
environmental appliances. purification solutions.
At the Technologies such as intelligent energy saving, comfort
product sensing and voice recognition have been applied to various
level
household appliance products.
Application of "Gentle Air Comfort Central Air-Conditioning Technology
GREE Taishan Smart Building Solution Platform
This central air-conditioning system adopts a reversible air supply system based on
During the reporting period, the Company launched the "Taishan" differentiated cooling and heating supply requirements. By controlling both upper and
Smart Building Solution Platform, which consists of a building lower air supply and return, it achieves a uniform vertical temperature distribution.
intelligent control system and a full-process high-efficiency The related technology passed technical appraisal in 2025, was certified as "world-
equipment room system. The platform can connect a large number leading", and received the AWE Innovation Award.
of electromechanical devices, enabling flexible and efficient
networking. In 2024, the "Taishan" Platform won the First Prize of
the Quality Technology Award granted by the China Association for
Quality. At present, the platform has been applied in more than 5,000
projects, including office buildings, industrial parks, hotels, hospitals
and rail transit systems, promoting the upgrading of the construction
GREE's Four Products Win
industry toward digital intelligence, greening and higher efficiency.
AWE Innovation Awards
Adhering to the integrated innovation strategic direction of "low-carbon, intelligence, and health", the Company has steadily
advanced the implementation of R&D achievements and fully utilized technological advantages in product manufacturing
processes and various service scenarios. During the reporting period, the Company received recognition from numerous
external professional institutions for its strong technological capabilities and outstanding product innovation capabilities,
GREE Taishan Smart Building Solution Platform and won a total of 57 science and technology awards and honors, demonstrating its commitment to innovation and quality-
oriented development.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Impact, Risk, and Opportunity Management Innovation R&D Capability Development
Relying on a unified risk and opportunity management system, the Company continuously identifies To meet the needs of R&D innovation, the Company continues to strengthen the development of its
and assesses uncertainties that may arise in innovation activities in light of changes in the industry R&D team and enhance talent structure and capability cultivation, providing human-resource support
environment, policy direction, and its own business development. Such identification is primarily based for technological innovation.
on tracking and analysis of industrial policies, technological trends, and market conditions, combined
with the professional judgment of the R&D system and technical teams, and is carried out in parallel Multiple Approaches to Encourage All-Staff Innovation
across stages including technology planning, product initiation, technical review, and major R&D project
assessment.
Project-based assessment and technological innovation reward mechanisms to stimulate
In practical management, the Company addresses risks associated with accelerated technological
innovation motivation;
iteration and intensifying industry competition through sustained investment in core technology
R&D. At the same time, it pays attention to IP layout and compliance management requirements Talent subsidies for high-level professionals and outstanding young industrial talents in
during the R&D process, embedding patent mining, infringement risk identification, and standardized Zhuhai;
management of innovation outcomes into the R&D management process. In addition, during the R&D
phase, the Company monitors changes in external compliance requirements such as energy-efficiency Employee stock ownership plan: covering core R&D teams to fully unlock employee
standards, environmental regulations, and product safety rules, and enhances the adaptability of potential and promote high-quality corporate development;
innovation outcomes to regulatory environments and market dynamics, thereby supporting the steady
advancement of its innovation strategy. "GREE Innovation Hub": technical salons, forums, achievement exhibitions, and
technological competitions to share technical knowledge and incubate innovation projects;
All-staff innovation mechanism: proposal improvement and open competition to foster a
strong innovation culture;
Favorable working environments and
benefits to attract and retain outstanding
talent;
Encouragement for employees to
participate in domestic and international
academic conferences and technical
exchanges to broaden perspectives and
enhance technical capability.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Collaborative and External Cooperation Innovation Practice
Focusing on key national technology fields and common industry challenges, the Company continues Beyond specific project collaborations, the Company has established long-term partnerships with over
to engage in industry-academia-research collaborative innovation, and carries out diverse forms of 100 universities, research institutes, and upstream/downstream enterprises, covering areas such as
cooperation with universities, research institutes, and industry-chain partners. energy-saving technologies, power systems, intelligent manufacturing, and key equipment. These
collaborations serve both national scientific missions and support the Company's medium- to long-term
technology reserves and capability building.
During the reporting period, the Company participated in multiple national
key R&D program projects:
In January 2025, the Company In October 2025, the "High-quality
As the project lead entity, the Company, together with State Grid participated in the national key R&D Magnetic Field Modulation Motor
Jiangsu Electric Power Co., Ltd., jointly undertook the national key program "Research on Key Technologies Topology and Application" project
R&D program "Key Technologies for Proton Exchange Membrane and Equipment for Pollution and jointly developed by Kaibang Motor
Fuel Cell and Heat Pump Coupled Power-Steam Cogeneration". Carbon Reduction Synergy in Urban with universities and industry
In response to the demand for efficient upgrading of fuel cell waste Wastewater Treatment Systems and institutions won the First Prize
heat under large temperature rise and wide operating conditions, the Utilization of Wastewater Heat Sources", (Invention) of China Machinery
Company carried out R&D of fuel-cell-driven pressurized boiling steam l e d b y C h o n g q i n g U n i v e r s i t y. T h e Industry Science and Technology
heat pump units to address the challenges of multi-source waste heat Company participated in the R&D of Award. The related technology
upgrading and load fluctuation response, thereby enabling the efficient key technologies and equipment for achieved significant improvements
and stable supply of high-grade steam. the efficient utilization of wastewater in overload capacity and torque
heat sources, advancing technological stability, has entered large-scale
breakthroughs in wastewater heat source application, and maintains a leading
The Company participated in the national key R&D program heat pump units through optimization of market share in mining conveyor
"Research on Key Technologies for the Flexible Response of thermal characteristics, and structural motor applications.
Building Electromechanical Equipment and the Development of Such design of new compressors and heat
Equipment", led by Tsinghua University. Addressing the requirements exchangers.
for rapid response and high regulation precision in building-to-grid
demand-supply interaction, the Company carried out the R&D of
electromechanical equipment, including flexible multi-split systems,
integrated cooling stations, and heat pump water heaters, to achieve
precise control and rapid response for the flexible energy consumption
of building equipment.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Innovation Application Initiatives
The Company continues to extend its technological capabilities into real business scenarios, promoting the transition of innovation outcomes from the laboratory to large-scale application through demonstration
deployment, product validation, and industry collaboration.
Validation of adaptability to extreme environments:
The Company conducted a "100-hour extreme cold challenge" field validation on Heixiazi Island, where the relevant products achieved continuous and
stable operation under -35 °C environmental conditions. Supported by core self-developed technologies, including large-displacement dual-cylinder
compressor, simultaneous defrosting and heating, and distributed air supply, the system effectively ensured operational stability and comfort performance
in low-temperature environments. These practices provided field validation for product adaptation and technological optimization in cold regions.
Validation of health technology application scenarios:
Focusing on drinking water safety, the Company carried out the "Safe Drinking Water for Hometowns" purification technology validation. Based on
the "dual-core six-stage fine filtration system" and ultra-high-precision RO membrane technology, deep purification of multiple water source types was
achieved. Supported by multiple core patented technologies, the solution ensured purification effectiveness while balancing energy efficiency, and reduced
the use of single-use bottled water through product deployment, demonstrating the integrated environmental and social value of technological innovation.
Industry collaboration and participation in public issues:
The Company participated in the preparation of the Annual Report on China Building Energy Efficiency and other industry studies and white papers,
proposed energy-saving and carbon-reduction solutions centered on technological pathways including ice-storage multi-split systems and air-source heat
pump heating, and contributed practical experience in load response and system optimization, providing reference for green buildings and low-carbon
urban development.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Green Product Design Intellectual Property Protection
Adhering to the philosophy of "For the Clearer Sky and Greener The Company has formulated an intellectual property (IP) strategy and management system aligned with its development vision,
Earth", Gree Electric Appliances consistently follows green and incorporating IP management into its operational management. The Company strictly complies with applicable IP laws and regulations in
energy-saving principles in innovation, R&D, and manufacturing. all operating locations, continuously improves IP-related institutional systems in line with business characteristics, and has established and
The Company upholds the policy of "rational energy use and implemented internal policies such as the Measures for Administration of Enterprise Intellectual Property, Measures for Administration of
improved energy utilization efficiency", promotes a circular Patent, and Measures for Administration of Trademark. These policies clearly regulate processes including patent application, maintenance,
development model of "green design–green manufacturing– operation, and commercialization of achievements, and are embedded into R&D management and daily operations. The Company also
green recycling", and continues investing in green environmental advances IP management system development across group subsidiaries, ensuring continuous implementation of relevant policies in
protection and energy-saving technology upgrades, embedding subordinate units. Currently, seven entities of Gree Electric Appliances and its subsidiaries have been recognized as National Intellectual
green requirements into products and manufacturing systems. To Property Demonstration Enterprises, and seventeen as National Intellectual Property Advantage Enterprises.
date, 25 product designs have received the title of Guangdong
Famous High-Quality High-Tech Product. Full-Lifecycle IP Management System of Gree Electric Appliances
The high-efficiency DC inverter central air conditioner
achieved stepless capacity regulation from 10% to 100%
through variable frequency control compressor, with
an annual performance factor (APF) exceeding 5.4, far
surpassing the national Grade 1 energy-efficiency standard; Business
Pre-research Design Procurement Production Sales After-sales
activities
Air conditioners using GREE's self-developed AI dynamic
IP Infringement of Improper use
energy-saving technology improved annual dynamic Repeated Material Equipment
management inadequately of promotional Quality risks
risks R&D infringement infringement
energy efficiency by more than 15.8% and reduced annual protected product materials
power consumption by over 13.6%, breaking seasonal,
Project search Patent layout Material Equipment Solving
temperature, and duration constraints through full-scenario IP control
and patent avoidance infringement risk infringement risk
Compliance
quality
measures review
intelligent adaptation and achieving immediate energy analysis design verification verification problems
savings during operation;
As an industry benchmark for green products, the split-
The Company maintains a dedicated IP management department staffed by more than 500 patent personnel, including over 70 management
type inverter heat-pump wall-mounted room air conditioner
specialists and more than 400 part-time patent technicians from technical R&D departments. Covering the Group's major R&D and business
obtained Green Product Certification through full life-
units, the department is responsible for patent mining, patent layout, management, and commercialization, while maintaining coordinated
cycle green design and high-efficiency energy-saving
operation with the R&D system. On this basis, the Company has a "GREE Patent Committee", and has established an innovation
technologies, driving green consumption transformation
management mechanism based on patent intelligence and has organized patent monitoring and technical assessment activities. During
through technological innovation.
the reporting period, nearly one hundred technical analysis outputs were generated through monthly patent early-warning and innovation
monitoring. In the same period, multiple patent information briefings were organized around themes including home appliance functional
technologies, smart home technology pathways, and cross-domain technology applications.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Through multiple approaches, the Company promotes the dissemination and implementation of IP
Patent Information Briefings Facilitating Consensus on R&D Topic Selection and concepts across the organization, with related initiatives centered on the practical needs of frontline
Technology Pathways R&D, gradually establishing a regular communication and learning mechanism. In 2025, a series of IP
training programs was organized, covering practical topics such as patent inventiveness assessment,
During the reporting period, focusing on key product technology
proposal drafting standards, infringement avoidance, and patent intelligence-supported innovation.
deployment, the Company organized multiple patent information
The training was delivered through a combination of online and offline formats, with certain courses
briefings to systematically review patent landscapes and
incorporated into the routine learning programs of R&D teams. Methods and tools including patent
technological evolution trends related to core home appliance
information analysis and TRIZ were gradually integrated into R&D design and technical discussion
functions. The inaugural briefing, themed "blockbuster home
processes, with cumulative participation exceeding 3,000 attendees.
appliance functions", constructed a functional technology
evolution map based on internal and industry patent data,
presenting development milestones, maturity levels, and Specialized IP Training Embedded into R&D Process Management
application scenarios across different technical routes, while
The Company organized a Specialized Intellectual Property Training program for R&D units
enabling on-site exchanges with R&D teams regarding key
Patent Information Briefing across the Group. Conducted in two phases, the program comprised nine courses covering
technology directions. The briefings attracted engineering and
modules such as patent inventiveness assessment, technical solution extraction and
technical personnel from multiple R&D units, achieving an on-
proposal drafting standards, identification and avoidance of infringement risks, and patent
site interaction and participation rate of 85%.
information and intelligence-supported product innovation. The training was delivered through
a combination of in-person lectures and online live streaming, with cumulative participation
The Company continues advancing the digitalization of IP management and has established an integrated
exceeding 800 attendees, covering major R&D centers and key technical teams. Following
platform system covering R&D intelligence analysis and full-process patent management.
completion, certain R&D departments incorporated patent search and inventiveness analysis
requirements into project initiation and technical review procedures. Relevant methods and
tools were simultaneously integrated into internal R&D guidance documents, gradually forming
R&D departments have developed a technological innovation
operational standards aligned with existing R&D management systems.
intelligence platform that structures the technical system
according to a "product–component–part–function" hierarchy,
forming nearly 4,000 technical classification categories
to support rapid patent information retrieval and technical
direction assessment by R&D personnel.
The Company has launched an enterprise full-process IP
management system comprising 16 management modules,
integrating functions such as patent search, application
and maintenance, value evaluation, patent navigation, and
operation. This system enables electronic management
of processes and documentation and achieves data
connectivity with the project management platform, PDM
system, and patent agency platforms. Company Training Courses
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Intellectual property has become a critical institutional foundation for technological innovation and industrial competition and is also The Company has received multiple domestic and international
closely linked to the establishment of a fair and orderly market environment. Based on its business practices, the Company regards professional recognitions in areas related to intellectual
IP protection as an essential component of long-term corporate development. In its operations, the Company has progressively property and technological innovation, and has participated in
formed core principles of respecting others' rights, guiding industry norms, and lawfully safeguarding its own interests, while the development of relevant industry collaboration mechanisms.
continuously advancing corresponding institutional arrangements and concrete actions around these principles.
Among the first batch of National
The Company understands the difficulty of innovation, and has invested substantial effort in Intellectual Property Demonstration
respecting others' intellectual property, established a multi-level IP risk prevention and review Enterprises
Respecting others'
intellectual property system, and conducted IP risk screening for every product prior to market release, achieving zero National Patent Operation Enterprise
lost patent infringement lawsuits. Initiated the establishment of the
Intellectual Property Alliance of
China Air Conditioning Industry, and
Domestic
As a leader in the air-conditioning industry, the Company has established the Intellectual Property served as its first chairman unit
Alliance of China Air Conditioning Industry to actively advance IP protection across the sector and Approved in 2025 as one of the first
Guiding the promote industry-wide respect for IP. For upstream enterprises, The Company provides IP custodial "Intelligent Home Appliance Industry
industry to respect
intellectual property support to enhance patent quality and reduce infringement risks; for peer enterprises, it promotes Intellectual Property Operation
technological advancement through patent licensing and transfer; and for downstream enterprises, Centers" in China, and promoted
it improves user consumption experience through patent licensing. industry innovation and development
If innovative achievements are maliciously replicated on a large scale, corporate motivation for
Gold Medal of International
innovation would be severely undermined and the national innovation environment that encourages
Exhibition of Inventions of Geneva
Courageously invention and creation would be seriously damaged. To safeguard its legitimate rights and interests, International
defending its own Gold Award of International
intellectual property the Company has initiated infringement litigation against repeated and malicious infringement acts.
Exhibition of Inventions Nuremberg
The Company advocates "respecting others' intellectual property, safeguarding one's legitimate
rights and interests, and jointly building a favorable business environment".
The Company has established a comprehensive full-chain multi-dimensional brand protection
model. Through coordinated online monitoring and offline enforcement, the Company accurately
identifies and combats counterfeit and substandard products, safeguarding brand credibility.
Upholding its
corporate brand image This model integrates resources from market regulation authorities, public security agencies,
and safeguarding
consumers' legitimate and e-commerce platforms to establish a rapid response mechanism, enabling swift handling of
rights and interests infringement leads and effectively curbing market irregularities. It further reinforces GREE's brand
image of "mastering core technologies", genuinely protects consumer rights and interests, enables
consumers to purchase with confidence and use products with assurance, and promotes the
healthy and orderly development of the industry.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Indices and Goals
Management Indices
During the reporting period: As of the end of the reporting period: The only home appliance company to rank in the
patent grants in China for ten consecutive years
top 10 for invention
"World-leading" technologies: 4 "World-leading" technologies:50
Domestic and international standards led or participated in (formulation and
IP training coverage: Number of patent applications: 138,935 revision): 942, including 62 international or overseas standards
Number of patent applications: 9,411 Number of invention patent applications: 76,928
Number of invention patent applications: 6,084 Number of invention patents granted: 32,317
Number of invention patents granted: 6,434 Software copyrights: 100
Standards participated in and released: 85 Cumulative China Patent Awards received: 81,
including 3 Gold Medal of invention patents and 4
Gold Awards for design patents
Cumulative Gold Awards at the International
Exhibition of Inventions of Geneva: 16 ; Gold Award
of International Exhibition of Inventions Nuremberg:
Management Objective Progress of 2025 Objectives
Top 10 in China for invention patent grants Achieved
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Pursuing Excellence Through
Meticulous Quality
Guided by the quality vision of "Made in China, Loved by the World", the Company has
established a distinctive quality management system that treats product and service
safety, as well as quality stability, as long-term core management priorities, and formed
a management mechanism covering the entire product life cycle, ensuring the effective
implementation of quality requirements in business operations through institutional
development, system operation, and continuous improvement.
Governance
The safety and quality management of the Company's products and services is overseen by the Executive Vice President (Chief Quality
Officer, and Quality and Safety Director), with assistance from the President Assistant in charge of quality management. Centered
珠海格力电器股份有限公司认证证书
around the core functions of quality management, specialized departments such as the Screening Plant, Outsourced and Purchased
Parts Management Department, and Quality Control Department are established, respectively responsible for the quality of purchased
测量管理体系认证证书
materials and supplier management, production process quality control, and issue rectification implementation. These responsibilities 证书编号 No. CMS粤[2024]AAA4483号
span key stages such as product design, procurement, manufacturing, sales, and service. 单位名称：珠海格力电器股份有限公司
单位地址：珠海横琴新区汇通三路108号办公608
兹证明贵单位在产品质量、经营管理、节能降耗、环境监测
The Company has established quality traceability systems covering the entire product lifecycle, including the Measures for 等方面的测量管理体系符合 GB/T 19022-2003/ISO 10012：2003
《测量管理体系-测量过程和测量设备的要求》标准的全部要求，
Administration of Product Quality Inspection and Production Process Quality and the Measures for Administration of Product
特发此证。
认证范围及其他符合性说明详见附件。
Sampling Inspection, enabling full traceability from raw material procurement to finished product delivery, providing foundational
（本证书的有效性依据认证公司的定期监督获得保持，在一个监督周期
后，与 CMS 签发的《年度监督审核合格通知书》合并使用方可有效。）
颁证日期：2024年01月11日 签发人:
support for quality issue identification, responsibility determination, and continuous improvement. For products in specialized 有效期至：2029年01月10日
fields, the Company implements the corresponding industry-specific quality management systems to ensure compliance with
higher-level safety and quality requirements. At present, all manufacturing plants under the Company have obtained ISO 9001
中启计量体系认证有限公司
Quality Management System Certificate and ISO 10012 Measurement Management System Certificate. 中国 北京 海淀区知春路 118 号 9 层 A 座 905E 100080
网站地址:www.china-cms.org
In daily operations, the Company convenes weekly quality meetings across business segments to continuously track quality
ISO 9001 Quality Management ISO 10012 Measurement
issues, risk matters, and rectification progress. Relevant information serves as an important input for operational management, System Certificate Management System Certificate
promoting the continuous implementation of quality management requirements in all business links. During the reporting period,
the Company experienced no major safety or quality liability incidents related to its products and services.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Strategy
List of Product and Service Quality Risks and Opportunities
Risk Name Specific Description Impact Period Response Measures
If quality indicators are set improperly, abnormality identification is delayed, or Establish quality meeting and daily quality report monitoring
process control is inadequate, batch problems may not be detected in time, mechanisms; strengthen issue prevention and closed-loop
Short Term
increasing rework, repair, return and after-sales expenses and affecting customer management through the D-CTFP method and the "Five-Step
Quality Objective and Process Control Failure Risk trust Quality Prevention" approach
Establish an outsourced and purchased parts management
Unstable quality of outsourced and purchased parts may trigger batch quality
Short Term, department; integrate supplier quality into the management
abnormalities, leading to increased claim costs, inventory losses, and potential
Medium Term process; implement a quality traceability and claims system to
Supplier Quality Fluctuation Risk recall risks, affecting the gross profit level
quickly identify responsibility
If the traceability chain for key materials and complete units is incomplete, Integrate data from the MES, logistics, and error-proofing
the scope of issues may be difficult to define, expanding the loss range and Short Term systems to achieve accurate linkage between materials and
Risk of Insufficient Product Traceability increasing compliance and reputational risks barcodes, and strengthen full-process traceability capability
Implement "Quality Training Campaign", skill training, and
Differences in inspectors' capabilities or high turnover may weaken quality control
Medium Term assessment mechanisms; clarify job competency standards and
capability, affect product consistency, and increase hidden quality costs
Risk of Uneven Personnel Capability and Turnover strengthen process supervision
Establish a product recall management system; conduct
If recall procedures are unclear or cross-department coordination is insufficient,
simulated recall drills annually; establish a multi-department
the efficiency of emergency response may decrease, potentially amplifying Medium Term
coordination mechanism covering quality control, technology,
Risk of Inadequate Product Recall Response compliance risks and brand losses
production, and customer service
Opportunity Name Specific Description Impact Period Response Measures
As consumers increasingly demand product safety, durability, and service Build a quality management system covering the full product
experience, high-quality products and stable services help enhance brand Medium Term, lifecycle, continuously optimize product consistency and stability,
Brand Opportunities from Rising premium capability and customer loyalty, supporting long-term stability in revenue Long Term and strengthen the closed-loop management of customer
Consumer Quality Awareness structure and gross margin levels feedback
Increasingly stringent product quality, safety, and compliance regulations create Improve the quality management system, advance quality
Opportunities from Stricter Regulations relative advantages for companies with mature quality systems, helping reduce Medium Term traceability, recall drills, and full-process control, and enhance
and Rising Industry Standards compliance risks and raise market competition barriers system maturity
Industry digital transformation drives quality management evolution from
Advance quality information system construction, strengthen data
experience-based to data-driven, and reduces defect rates, rework rates, and
Opportunities for Quality Management Upgrade Medium Term monitoring, analysis, and traceability capabilities, and enhance
after-sales costs through systematic collection and analysis, thereby improving
from Manufacturing Digital Transformation management efficiency
operational efficiency
Products with higher quality, stronger durability, and higher reliability are more Embed quality management throughout product design,
Opportunities from Green Manufacturing and aligned with green consumption trends, helping extend product lifecycle, reduce Long Term manufacturing, and service processes to improve product stability
Sustainable Consumption Trends full-lifecycle costs, and enhance long-term market recognition and reliability
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Impact, Risk and Opportunity Management
Under a unified risk and opportunity management framework, the Company
Made in China, Loved by the World — Block Diagram of GREE's Perfect Quality Management Model
integrates quality-related risk identification and improvement mechanisms into
daily operational management. Quality risks are primarily identified through
quality information system monitoring, quality meetings, specialized inspections,
and simulated drills, and are continuously tracked across production operations,
supply chain management, and after-sales service processes, achieving closed-
Made in China, Loved by the World
loop management.
For risk response, the Company enhances its product traceability system,
strengthens supplier quality management, advances quality information-based Perfect quality
monitoring capabilities, and implements specialized quality improvement
initiatives. These actions promote problem rectification and experience Procurement Manufacturing Sales & service
R&D process process process process
accumulation, forming a closed-loop management mechanism and effectively
reducing the likelihood of systemic quality risks. Meanwhile, the continuous
enhancement of quality management capabilities helps strengthen user trust Target driven Integrated innovation Guarantee prevention
and brand stability, laying a solid foundation for the Company's long-term and
stable development.
Customer Process 5. Improvement
Quality Management System Development orientation 1.C 4.P system
optimization
Internal
Centered on the quality policy of "pursuing best quality, establishing an and 3. Execution
international brand, and building a century-old enterprise", the Company sets external Inspection Failure
technology mechanism
"zero defects" and "the best service means no after-sales service required" 2.T 3.F
driven research 1. Demand survey
as quality goals, gradually forming a quality culture centered on "strictness,
practicality, and innovation". On this basis, the Company has established its
distinctive "Perfect Quality Management Model". Oriented toward customer Feedback Support
needs, the model promotes the transition of quality management from
experience-driven to methodology-driven through the self-developed "Quality
Target Organizational Technical Standard Information
Technology Innovation Cycle (D-CTFP)" and the "Five-Step Quality Prevention"
management system system system system
approaches. Supported by target management, technical system, organizational
system, standard system, and information system, this model incorporates
quality management approaches into core processes including R&D,
procurement, manufacturing, and sales services, thereby driving the sustained
implementation of quality improvement outcomes and strengthening product
consistency and stability.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Full-Process Quality Inspection P
品召回与风险演练管理产 roduct Recall and Risk Drill Management
The Company has established a comprehensive product quality inspection mechanism covering the entire
The Company has formulated the Measures for Administration of Product Traceability and Recall
process of material procurement, product manufacturing and delivery. The Company employs about one
Control, covering product design, procurement, production, and sales, to achieve full-process
hundred quality inspectors, implements multiple quality inspection processes, conducts appearance,
traceability from raw materials to finished products.
performance, and type tests for outsourced materials during the inbound stage, enforces process quality
control and inspection during the final assembly and supporting plant production processes, and carries
out multi-dimensional tests on performance, noise, reliability, and safety regulations in the experimental Product Traceability Management Approach
testing phase. Through a full-chain, multi-tier quality inspection system, the Company effectively ensures
product stability and reliability and continuously strengthens its capability for high-quality delivery.
All raw materials and components must carry traceable records and labels, including batch
Quality Improvements and Enhancements number, production date, specifications, and supplier information;
The Company continues to advance specialized quality improvement and All products are managed using barcodes, with each barcode number corresponding to the
quality breakthrough innovation initiatives, continuously improves product actual product. These barcodes serve as the primary identification markers for the products.
quality levels through process optimization, process enhancement, and The Measures for Administration of Barcode and Certificate is formulated as the basis for
strengthened control at critical control points, and gradually reinforces a this management system;
prevention-oriented quality management mechanism. These practices not
only focus on issue correction but also emphasize front-end prevention For export products, batch management is also implemented, with export batch numbers
and systemic improvements, driving the transition of quality management corresponding to production order numbers;
from passive response to proactive control.
The Company records and manages quality information for all products, documenting
details such as barcode numbers, export product batch numbers, production dates, shifts,
"Quality Training Campaign" Special Initiative Enhances Frontline Inspection Capabilities
and specifications of key components.
In response to the national "Quality Month" initiative, the Company actively organized "Quality Training
Campaign" special activity for the Quality Control Department, covering frontline quality personnel
In accordance with the Interim Provisions on Consumer
including inspectors, laboratory technicians, sampling inspectors, first-article inspectors, patrol
Product Recall Management, the Company has established
inspectors, and team leaders. The activity addressed recent typical production and after-sales quality
a product recall management system and corresponding
issues and combined theoretical training, hands-on practice, skills competitions, and knowledge
working mechanisms, forming a recall management
contests tailored to specific roles. Training content covered required job knowledge, inspection
process that covers risk identification, decision initiation,
standards, and key operational requirements. Each department designated responsible persons to
implementation, and effectiveness evaluation. Once it is
advance the implementation, keep attendance, examination acceptance, and process records during
discovered that products already on the market or delivered
training, and assess both theoretical and practical results.
to distributors pose compliance risks or safety hazards,
The Company also established process supervision and spot-check mechanisms, requiring weekly the Company may promptly initiate recall procedures in
progress reporting and accountability for training effectiveness. The initiative aimed to strengthen accordance with established protocols to retrieve and
company-wide quality awareness, enhance frontline execution capability and process control capacity, dispose of the relevant products, effectively safeguarding
and provide foundational support for quality risk prevention. consumer rights and interests.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Conditions for Initiating a Product Recall Quality Digitalization Development
The product is found to be non-compliant with applicable laws and regulations in the place The Company continues to advance the digitalization of quality management. During the reporting
of sale; period, the Company independently developed a Group-level quality traceability and claims
The product contains hazardous quality defects that may cause harm to the personal or management system, integrating data from the MES system, material scanning and error-proofing
property safety of users or others; system, and logistics system to achieve precise linkage between key core materials and complete-unit
Batch-level product quality issues are identified; barcodes, thereby effectively improving the efficiency of responsibility traceability.
Non-compliant HSF output is discovered after product delivery, requiring recall in
accordance with applicable laws and regulations or customer requirements. At the same time, the Company has established a Group-level daily quality report monitoring
management system to systematically monitor key quality data in the manufacturing processes of
each base. This facilitates the identification of potential risks and common issues, promotes timely
For recalled products, the relevant departments, including Quality Control, Technical Support,
rectification, and provides data support for continuous quality improvement.
Production Management, Operations Management, and Customer Service, coordinate to carry out
handling measures and determine solutions such as repair, rework, or scrapping based on specific
circumstances. The Customer Service Department concurrently conducts user communication and Indices and Goals
follow-up, collects usage feedback, and incorporates the relevant information into customer satisfaction
management and continuous improvement processes.
Management Indices
The Company organizes simulated product recall drills annually, and conducts practical inspections
of recall procedures, response mechanisms, and responsibility allocation, thereby continuously
strengthening its capability to address quality risks. During the reporting period, no product recall Number of major safety and quality liability incidents related to products or services: 0
incidents occurred.
Number of product recall incidents: 0
Simulated Product Recall Drill — Validating Traceability and Collaborative
Response Capability
In October 2025, the Company conducted its annual simulated product recall drill. Using an
overseas customer complaint as the scenario, the recall process was initiated to rapidly trace the
product model, production batch, key components, and supplier sources, while simultaneously
Management Objective Progress of 2025 Objectives
verifying inventory and identifying the scope of impact.
The drill covered key stages including complaint acceptance, technical verification, recall decision-
making, compliance communication, supply chain tracing, material preservation, and return- Year-on-year decrease in
Achieved
package handling. All departments advanced the process in coordination according to their after-sales failure rate ≥ 7%
respective responsibilities and completed the full closed-loop workflow within the prescribed
timeframe. The initiative served to verify the effectiveness of the Company's product traceability
capability and recall mechanism, providing an important basis for subsequent system optimization.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Craftsmanship-oriented Service Enhancing Reputation
The Company adheres to the service philosophy that "your satisfaction is our top priority", regards user satisfaction as the purpose of its customer service, and continuously improves the development and
operational management of its service system. The Company has established a three-tier after-sales service system (GREE headquarters customer service center + regional sales companies' customer service
centers + service outlets), forming a nationwide service network and response mechanism and providing users with continuous and stable service support.
The Company strictly complies with laws and regulations including the Provisions on the Responsibility for Repair, Replacement and Return of Certain Commodities, the Law of the People's Republic of China on the
Protection of Consumer Rights and Interests, the Regulation on the Implementation of the Law of the People's Republic of China on the Protection of Consumer Rights and Interests, and the Product Quality Law
of the People's Republic of China, and has established standardized customer service information handling procedures and a closed-loop management mechanism covering issue acceptance, classified handling,
follow-up supervision and result feedback. In addition, relevant procedures have been integrated into daily operational management.
Full-Cycle Service
Management
Pre-Service In-Service Post-Service
Based on its existing customer
Preparation Fulfillment Review
service governance structure, the
Company defines management and
control requirements centered on
"frontline performance fulfillment and Personnel control: All frontline engineers must Fulfillment control: When arriving on site, Satisfaction follow-up: After service
service closed-loop management", be certified before taking up their posts. They engineers need to proactively present their completion, the headquarters customer
are required to complete training in product service qualification certificates. The entire service center conducts a satisfaction survey
and continuously monitors and knowledge, maintenance skills, service etiquette, service process is visualized and traceable to via SMS. For any unsatisfactory services,
manages service compliance, safety, and safe operation (e.g., working at height, prevent irregular charges, unnecessary repairs, follow-up actions are initiated.
and service experience quality. electrical safety), and may undertake service or poor service attitude.
assignments only after passing assessments. Deep dive into complaints: For user
Regular skills retraining and safety evaluations Safety control: For high-risk services such complaints (e.g., illegal charges, inadequate
are required. as high-altitude installation and electrical repairs, safety hazards), a dedicated
maintenance, engineers must wear protective team conducts a special review to identify
Tools and accessories control: Engineers must equipment in accordance with operational responsible parties, implement rewards and
carry professional maintenance tools when standards. Upon completion of service, penalties, and improve service processes.
providing on-site service. Tools are subject to engineers need to proactively explain safety
periodic safety inspections, and unqualified tools precautions to users, and may leave the site
are prohibited from the use. Accessories used only after the user signs to confirm safety.
during maintenance must be genuine original
parts from GREE, and are managed under an On-site supervision: Regional service centers
"on-demand requisition + returning old parts" assign dedicated personnel to follow engineers
system to prevent the use of counterfeit or for on-site services to check service procedures,
substandard parts. safety practices, and user communication,
identify issues, and urge rectification.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Customer Complaint Handling The Company strives for a "zero complaints in after-
The Company strictly implements the "Three Guarantees" sales" goal. The Company collects user feedback through
policy and adopts rapid response and classified handling During the reporting period, the Company
multiple channels, including the service hotline, WeChat
measures for customer complaints and negative reviews. official account, online customer service platforms, and
Based on the Customer Service Emergency Management
Measures, customer service personnel are authorized to offer 24
maintained a -hour response standard,
email, and regularly conducts customer satisfaction
surveys. The results of these surveys indicate that the
compensations such as point rewards, extended warranty keeping communication channels open with a Company's customer satisfaction has remained above 99%
services, or free cleaning as remedial actions in necessary
cases. For complex or special complaints, the Company 100% complaint resolution rate for four consecutive years, with the data guiding service
optimization and process improvements.
provides customized solutions and dedicated communication
services, with the goal of achieving customer satisfaction. Key Performance
Launching the National Unified Service Hotline 95082
To optimize user service experience, the Company upgraded its original hotline (4008365315) Customer
to the national unified service hotline 95082 starting September 15, 2025. This five-digit Satisfaction
number is approved by the Ministry of Industry and Information Technology and serves as the Customer
Company's official unified service entry. The Company has simultaneously enhanced related Satisfaction
service functions:
Official certification, Intelligent response, Integrated services,
greater assurance greater efficiency more convenient 99.97%
As an official service channel, The hotline system integrates The 95082 hotline is linked to Customer
the 95082 number helps users intelligent voice recognition, the "GREE Service" WeChat Satisfaction
easily recognize and use it, automatically identifying and official account and mini-
reducing the risk of mistakenly redirecting common inquiries, program, supporting online
using unofficial channels with a collaborative mechanism appointment scheduling,
involving human service progress tracking, and other
representatives service functions
The launch of this service hotline is a concrete measure to further optimize the customer
service system and improve service accessibility, reinforcing the service philosophy that "every GREE Service Hotline
small matter of the user is a big matter for GREE".
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Service Capability Development
The Company continues to advance sales and after-sales collaboration,
exploring an integrated sales-and-service operation model. By providing
After-Sales Installation and Maintenance Skills Competition
after-sales outlet marketing capability training, enhancing terminal store
capabilities, and empowering with digital tools, some service outlets
have gradually developed integrated service and sales functions. During the reporting period, the Company
Adhering to the concept of "service without limits", the Company organized the "GREE Cup" National After-sales
continually strengthens the professional skills of after-sales personnel. Installation and Maintenance Skills Competition,
Each year, GREE develops and updates management documents targeting the nationwide residential and
such as the On-site Service Manual and New Product Technical Guide, commercial after-sales service systems. A total of
regularly organizing after-sales technical training. The Company 30 residential after-sales service personnel and
also leverages its WeChat official account platform, "GREE After- 62 commercial after-sales service personnel from
sales Engineers", to provide frontline staff with installation standards, across the country advanced to the final stage.
troubleshooting solutions, and related resources, promoting the
The competition focused on practical scenarios,
continuous improvement of service capabilities.
while simultaneously fostering technical exchanges
and experience sharing. This event has become
Unified Customer Service Platform Promotes Service
one of the Company's key ways to assess the
Digitalization and Intelligence Upgrade
professional capabilities of service personnel and
Starting in June 2025, Gree Electric Appliances initiated the drive skills development, forming a linkage with the National After-sales Installation and Maintenance
development of the "Unified Customer Service Platform", after-sales talent training system. Skills Competition Launch Ceremony
consolidating various service channels, including the service hotline,
online stores, mini-programs, and H5 pages. This integration
facilitates the "unified access, unified reception, and unified
service" operation model. By the end of December, the system
Informatization of Commercial Air Conditioner After-sales Quality Management
had completed more than 40 functional iterations, continuously
enhancing system stability and operational efficiency.
To improve the after-sales quality management level of commercial air conditioners, the Company initiated a commercial air conditioner
To optimize service efficiency, the Company simultaneously after-sales quality management informatization project, and developed and launched a full-process digital information system for after-
introduced tools such as intelligent voice navigation and text- sales quality management, standardizing and systematizing the quality issue handling process.
based robots. In 2025, the proportion of human reception dropped
to 41.82%, while the self-service rate increased to 24.72%. The The system optimizes service processes through digital means, realizing quality data connectivity between service providers, sales
knowledge base system added over 120,000 pieces of knowledge companies, and the headquarters' commercial air conditioner after-sales division. Over time, this system has gradually formed a full-link
throughout the year, a 149.67% year-on-year increase. It also closed-loop management mechanism, covering problem discovery, processing, tracking, and feedback. Additionally, multi-dimensional
completed data integration with the product parameters system and digital reports have been developed, enabling collaborative quality management between internal and external channels. The data
retail distribution system, providing frontline service personnel with accumulated in this system has been used to support product development, technical evaluations, and parts inventory management,
more timely and comprehensive knowledge support. providing data-driven support for continuous improvement in product quality and customer satisfaction.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Improving Quality and Efficiency Through Full-chain Digital Intelligence
Gree Electric Appliances vigorously promotes digital and intelligent transformation to enhance
corporate competitiveness in the digital era. The Company continues to improve its digital business
Industrial Internet Platform for Large-
operation methods and operational systems, using digital technologies to connect all links scale Manufacturing Industries
across its entire value chain and drive efficiency improvement, value creation and enhancement
of business performance. Closely aligned with GREE's strategic business planning and guided To address the collaborative needs of the large-scale home appliance
by the principle of improving both "efficiency and effectiveness", the Company has achieved manufacturing industry, the Company has developed an industrial internet
comprehensive breakthroughs in full-value-chain data operation and intelligent operation. platform for large-scale manufacturing industries and pioneered the "GREE
Coordination Hub" collaboration model. Breaking through traditional chain-type
and star-type collaboration architectures, the Company has established a multi-
Relying on the national key R&D program "R&D and Application of Industrial
level networked collaborative ecosystem led by core enterprises, enabling full-
Internet Platforms for Large-scale Manufacturing Industries", the Company
dimensional collaboration across "resources - business - links - value".
Industrial has gained industrial chain collaboration platform capabilities and promoted
Chain collaborative applications between upstream and downstream enterprises in
Collaboration areas including order coordination, plan linkage and information sharing, thereby The platform deeply integrates next-generation information technologies
facilitating resource integration and business collaboration and improving the including blockchain, big data, artificial intelligence and digital twins, and
overall operational efficiency of the industrial chain. establishes an integrated technology system covering trusted data sharing,
business collaboration optimization, operational management and control, and
forecasting and early warning. The platform connects the entire value chain from
Focusing on core business areas including manufacturing, supply chain
R&D and design, bulk procurement and collaborative manufacturing to customer
management, quality control and human resources, the Company has steadily
service, effectively addressing industry pain points such as data silos and
Internal advanced ERP system upgrades and the demonstration application of self-
delayed collaboration. Its open and scalable architecture provides an advanced
Digital and developed systems such as MES, WMS and QMS, gradually establishing a
Intelligent and practical system solution for building an efficient, intelligent and sustainable
digital operation system featuring unified system architecture, standardized data
Transformation industrial chain collaboration ecosystem.
standards and centralized group management. This has enabled unified data
collection, unified data standards, and shared data utilization, while enhancing
operational transparency and cross-department collaboration efficiency. Based on the platform, Gree Electric Appliances (Zhuhai Jinwan) Co., Ltd.
has established a full-process collaborative system covering "customer -
R&D - procurement - manufacturing - services", and implemented the "full-
Based on the industrial internet platform and unified data foundation, the value-chain collaboration" smart factory model, achieving a 46% improvement
Smart Company promoted the development of a digital intelligence system at the in management efficiency, a 100% increase in per capita efficiency, and
Factory Gaolan Factory, improving capabilities in production execution, quality traceability a significant improvement in delivery speed. The platform has also been
Construction and equipment management. This received industry recognition, and the factory demonstrated and applied in industries including automotive and electronic
was selected as a pioneer-level intelligent manufacturing factory. information, showcasing strong cross-industry adaptability and replicability.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
During the reporting period, the Company received several important certifications and honors in digital
GREE Selected as a "Pioneer?Level" Smart Factory by the Ministry of Industry and intelligent transformation, including:
and Information Technology
In December 2025, Gree Electric Appliances (Zhuhai Jinwan) Co., Ltd. was successfully
selected for the first batch of "pioneer?level" smart factories in China with the project "GREE
Coordination Hub Air Conditioner Smart Factory of the Full Value Chain". It is the only
company in Guangdong Province to be included in this list.
Pioneer-level smart factories represent the highest tier explored and cultivated under the
smart factory gradient cultivation initiative jointly launched by six ministries and commissions,
including the Ministry of Industry and Information Technology and the National Development
and Reform Commission, in 2024. The system consists of four tiers: foundational, advanced,
excellent and pioneer levels. As of the end of 2025, China had established more than 35,000
foundational smart factories, more than 7,000 advanced smart factories, more than 500
excellent smart factories and 15 pioneer-level smart factories.
The selected smart factory integrates one Wuhan Gree, Hefei Gree, Luoyang Gree,
AAA-Level
industrial internet platform, one multi-source Wuhu Gree, Nanjing Gree, Hangzhou
Certificate for the Integration
Gree, Ganzhou Gree, Suqian Household
heterogeneous data middle platform, eight key of Informatization
Appliances, and Gree Electric (Meishan)
business systems, and AI models. It features and Industrialization
were awarded honors as Advanced-
Management System
self-developed, "purely domestically produced" Level Smart Factories
intelligent manufacturing equipment with an
automation rate exceeding 80%. The factory
achieves interconnected business systems, The project "GREE Coordination
Jinwan Gree was approved as Hub Air Conditioner Smart Factory
data sharing and interoperability, and AI model- a "5G Fully Connected Factory" of the Full Value Chain" was
driven operations, addressing critical challenges by the Ministry of Industry and selected for the 2025 Pioneer-Level
such as siloed management in manufacturing Information Technology Smart Factory Cultivation List
departments, data islands, manual decision-
making, post-event management, and outdated
equipment. This enables agile operations and
flexible manufacturing, boosting operational Gree Electric Appliances Selected The project "Development of a Digital Ecological System for Controller Manufacturing Based on AI
efficiency and business performance. as a "Pioneer?Level" Smart Factory Technology" was selected as a typical case for digital transformation in manufacturing enterprises
by the Ministry of Industry and by the Ministry of Industry and Information Technology for 2025
Information Technology
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Rigorous Data Protection for Enhanced Security
The Company strictly complies with national laws and regulations on cybersecurity and personal information protection and fulfills its data security responsibilities through a combination of institutional constraints,
capability development and drills. During the reporting period, the Company did not experience any information security incidents or user privacy breaches.
Improving the Information Security System
In accordance with the Cybersecurity Law of the People's Republic of China, the Personal Information The Company has obtained ISO 27001 and ISO 27701 certifications, achieved deep
Protection Law of the People's Republic of China, and international standards such as ISO 27001 and integration of the two management systems, and established an integrated management
ISO 27701, the Company has formulated and issued institutional documents including the Administrative framework, demonstrating the maturity and standardization of its information security
Measures for User Privacy Protection, which systematically regulate technical protection, management management system. In terms of compliance management, the Company's core business
processes and personnel behavior. Meanwhile, the Company continues to strengthen its data security and systems have successfully passed Multi-level Protection Scheme (MLPS) assessments,
customer privacy protection system by establishing a three-tier governance structure. and privacy impact assessments have been completed for all key business scenarios,
ensuring full compliance with applicable requirements. Meanwhile, the Company has
formulated more than 50 management measures covering access control and emergency
The highest decision-making body and ultimate responsibility response, thereby establishing a comprehensive institutional framework. In terms of
entity; consisting of the Cybersecurity and Information technology and asset management, the Company deploys protection means including
Security Leadership Team (including the Chairman and senior file encryption to reduce the risk of data leakage. The Company has established an asset
Decision- management) classification and grading management mechanism and completed comprehensive asset
making Level
inventory and risk identification.
Responsible for formulating cybersecurity
management policies and technical standards,
and supervising their implementation; consisting
Supervisory Level
of members of the Office of the Cybersecurity and
Information Security Leadership Team
Responsible for carrying out cybersecurity
and information management work according
Execution Level to the requirements of the Leadership Team
Office; consisting of information security ISO 27001 Information Security ISO 27701 Privacy Information Security
officers from various units and subsidiaries Management System Certificate Management System Certification
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Information Security Emergency Management Information Security Emergency Response Plans
The Company adheres to the principle of "prevention first, combined with drills", and systematically During the reporting period, the Company formulated and implemented 27 emergency response plans
carries out security awareness training and emergency response capability development. By providing covering network communications, system platforms, application services and information security. The
comprehensive training for all employees, we enhance awareness of security risks. Routine emergency feasibility, goal rationality, and safety of each plan are evaluated by the lead of the drill team. Each plan
drills and practical testing are conducted to continuously evaluate and strengthen the emergency undergoes drills within the designated cycle, primarily ensuring the objectives through techniques such
response mechanisms, ensuring risks are identified, controlled, and manageable. as active-active/multi-active architectures, backup recovery mechanisms, and failover processes. At the
end of each year, a review is conducted on all completed plans, a summary report is generated, and
The Company has established and continuously improved its information security incident response the drill plan for the following year is developed.
and handling mechanism, and has formed a dedicated information security emergency response team
responsible for the overall coordination of prevention, monitoring, reporting and emergency response.
The team operates with a hierarchical command and collaboration mechanism to ensure efficient and Phishing Email Drill
orderly emergency responses:
The Company continuously enhances employees' awareness of cybersecurity and evaluates
Emergency response team leader: Responsible for overall coordination the effectiveness of existing network security measures. The Computer Center regularly
and decision-making, approving and initiating the appropriate level of organizes phishing email drills. The drills cover all users of external email accounts and
Emergency
response team emergency response plan, organizing resources for recovery actions, and include four typical scenarios: account expiration reminders, policy declaration notices, holiday
leader promptly reporting major information security incidents to the Company's arrangement notifications and account security risk alerts. Based on analysis of the drill results,
personal information protection officer and senior management. targeted cybersecurity training is further strengthened for users. Through the combination
of regular drills and training programs, the Company gradually improves employees' ability
to identify cybersecurity risks such as phishing emails, thereby reinforcing the Company's
network security defenses.
Emergency response team deputy leader: Responsible for on-site
coordination during emergency handling, overseeing the implementation
Emergency of the plan, ensuring smooth coordination between different stages, and During the reporting period
response team
organizing post-incident investigations, cause analysis, damage assessments,
deputy leader
and rectification experience summaries. This role also coordinates internal Number of data security incidents Number of customer privacy
leakage incidents
departments and external partners for joint response efforts.
Emergency team members: Responsible for carrying out specific response Employee coverage Number of Total
tasks, including technical investigation, attack tracing, vulnerability analysis, rate for data security data security participation in
Emergency team and customer privacy emergency data security
business recovery, evidence collection and preservation, and assisting protection training drills emergency drills
members
in impact assessment and incident reconstruction related to personal
information security incidents.
participants
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Employee Employment and Rights and Benefits
The Company bases its talent development on legal employment management and comprehensive rights protection. It strictly complies with
all relevant labor laws and regulations, adheres to the principles of equal employment and standardized management, and has established During the reporting period
a lawful, compliant, fair, and just employment system. It fully implements employees' legal rights and interests, continuously improves
welfare protection, labor protection, and other supporting mechanisms, safeguarding employees’ vital interests, and creating a safe, healthy,
harmonious, and inclusive working environment. This ensures that employees and the Company grow together and share in the fruits of
development. The Company experienced no
labor disputes
Compliant Employment
The Company strictly complies with the Labor Law of the People's Republic of China, Labor Contract Law of the People's Republic of China,
Provisions on the Prohibition of Using Child Labor, and other relevant laws and regulations. The Company also follows the International
Labour Organization (ILO) conventions (including Convention No. 138 on Minimum Age and Convention No. 182 on the Worst Forms of Child
Labour), and has established the Employee Recruitment Management Measures.
Has not had any strikes or work
stoppages in the past three years
In accordance with the Employee Recruitment Management Measures,
the Company adhered to the principles of "open recruitment, equal
competition, and selection of the best candidates". We followed local labor
laws and regulations when recruiting, strictly prohibiting child labor, forced The social insurance coverage
labor, and similar unethical practices. Gender, ethnicity, and regional biases rate was
were completely excluded from the recruitment process. We standardized
resume screening and interview evaluation criteria, rigorously implementing
anti-discrimination measures in employment, and respecting employees' 100%
rights to freely assemble and form associations under the law. Special
support policies were implemented for specific groups such as new college
graduates and veterans. For instance, veterans were allowed to retain their The employee labor contract
signing rate was also
positions and continue their work experience accumulation during their
military service, and were given priority for training and development upon
their return to the Company. Moreover, the Company actively implemented
policies to stabilize employment, continuously releasing sufficient job
resources to ensure fair employment opportunities for diverse groups. Inclusion in the Forbes 2025
During the reporting period, the Company was named to the Forbes’ 2025 World's Best Employers
World’s Best Employers.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Employee Structure Democratic Communication
Total number of employees 71,966 The Company continuously strengthens the development of democratic management and employee communication mechanisms. It has
legally established a labor union and set up a workers' congress, creating a sound, organization-wide democratic management framework
that spans all levels. Additionally, the Company has built a systematic and routine democratic communication system, establishing an open
Frontline
employees 66,526 and transparent platform for employee participation, ensuring the protection of employees' legal rights and democratic participation.
Middle 民主沟通渠道与方式Channels and Methods of Democratic Communication
management
Senior
management
The Company has leveraged the Each department has designated Departments hold regular
Finance personnel Administrative union's WeChat official account to union chairpersons and officers, democratic life meetings,
Technical employees can independently select and handle the requests; their opinions on topics
personnel the relevant department and initiate such as working conditions,
Sales During the reporting period, the workers' congress rigorously followed the Company Law of the People’s Republic of China and Workers'
personnel Congress Operating Procedures to review and approve four key resolutions related to employee rights. These actions fully ensured
systematically safeguarding employee rights at the institutional level.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Compensation and Performance
The Company strictly complies with national laws and regulations, having established systems 员工持股计划Employee Stock Ownership Plan
such as the Employee Performance Management Measures and a comprehensive compensation
management system to protect employees' lawful rights to remuneration. The Company has Employee incentive mechanisms are improved to promote
established a compensation structure consisting of “fixed income + variable income” for 100% of high-quality development of the Company. To share the
its employees (including management). The variable income is linked to dynamic factors such as Company's development achievements with employees,
individual performance appraisals, fully reflecting the fairness and incentivizing nature of compensation enhance their motivation and creativity, and ensure the
distribution. The Company has set up a diversified bonus system, including proposal improvement realization of strategic development and operational goals, the
awards, performance bonuses, year-end bonuses, and annual project assessment bonuses. The Company had implemented three Employee Stock Ownership
assessment criteria focus on goal achievement and tangible results, using performance as the core Plans (ESOPs) as of the end of the reporting period. The
evaluation basis to ensure objective, fair, and clearly differentiated outcomes. The evaluation outcomes incentive scope covers the Company’s directors (excluding
serve as the primary basis for compensation incentives and rewards, driving improvements in both independent directors), senior management, middle cadres of
organizational efficiency and employee capabilities. the Company or its holding subsidiaries, and core employees.
The total number of employees participating in each ESOP
Grievances and Feedback is at the forefront of the industry, further improving the
mechanism for sharing benefits and risks among shareholders,
The Company has established a management, middle cadres, and core employees.
standardized performance grievance
channel. If employees disagree with the
current performance evaluation, they
can first communicate with their direct
N
员工持股计划覆盖员工人数 umber of Employees Covered by the ESOP
supervisors. If no agreement is reached,
they can submit a written grievance
to their unit during the performance 4,513 3,170 5,141
disclosure period. Upon receiving
the grievance, the unit shall promptly
communicate and provide feedback on the First Second Third
resolution. If employees have concerns ESOP ESOP ESOP
about the fairness of performance
management, they can submit a written
appeal to the Human Resources
Department, which will investigate and
handle the issue according to regulations.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Employee Care
The Company strictly complies with national and local laws and regulations, improving its system for employee allowances, benefits, and holiday entitlements. We implement statutory allowances, such as high-
temperature and hazardous position allowances, and provide functional allowances as needed, including those for seniority, meal expenses, shift work, and skills. The Company also makes contributions to social
insurance and housing provident funds, strengthening the foundation of employees' livelihood and career protections. In addition, the Company has established policies on parental leave and nursing leave, which are
implemented by subsidiaries in accordance with local laws and company policies. The Company's allowances, benefits, and leave policies cover all employees.
Employee Allowances, Benefits, and Types of Leave
Statutory Functional Statutory Non-Statutory Types of
Allowances Allowances Benefits Benefits Leave
High-temperature allowance: Seniority allowance: Determined Social insurance: The Company Housing benefits: Employees Annual leave, personal leave,
Issued in accordance with based on the employee's length and employees each contribute are provided with fully equipped compensatory leave, sick leave,
national and local regulations on of service with the Company. to social insurance according dormitories, ensuring a "move-in work injury leave, marriage
high-temperature allowances. to national and local laws and ready" experience. leave, funeral leave, maternity
Meal allowance: Provided to regulations and company leave, reward leave, family
Hazardous position allowance: offset employees' meal expenses regulations. Transportation benefits: Free shuttle planning operation leave,
Based on national laws and during work hours. buses cover the Zhuhai area and the prenatal check-up leave,
regulations and company Housing provident fund: Both the locations of each subsidiary, ensuring breastfeeding leave, break
regulations, the allowance is Shift work allowance: Offered Company and employees make convenient commuting for employees. time for pregnant employees in
calculated according to job risk to employees working mid or equal contributions based on the their seventh month or beyond,
levels and the number of days late shifts, as a form of special rate determined by the workers' Health checkup benefits: The
paternity leave, parental leave,
worked in a month. recognition for irregular working congress, in compliance with Company offers health checkups for
and nursing leave.
hours. national and local laws and employees.
Other statutory allowances: regulations.
Provided in compliance with Skills allowance: Adjusted or Tuition/Certification fee
dynamically updated national removed based on the employee's reimbursement: Reimbursement is
laws and regulations. skill level assessment. available for obtaining associate,
bachelor’s, or master’s degrees,
Other allowances: The Company or for obtaining special operation
may introduce additional permits or special equipment
allowances as needed, based on safety management and operation
specific policies or notifications. certificates required for the position.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Working Conditions Employee Well-being
To regulate employees' working conditions, safeguard employees' legal rights and work-life balance, The Company focuses on creating a comprehensive welfare and support system for employees and
and enhance work adaptability and well-being, the Company has established clear and compliant has continuously increased welfare investments and established a holistic system to ensure employee
management specifications regarding work arrangements and overtime management. This ensures that well-being. It has established comfortable, well-equipped employee living areas (GREE Kangleyuan
both parties' rights and responsibilities are defined, and that work is conducted in an orderly manner Phase I and II, etc.) and built GREE School in 2018 to address the problem of employee children's
with the full guarantee of employee rights. education. Additionally, a large shuttle bus system has been set up, and employees are provided with
custom work uniforms, catered dining facilities, communication packages, and annual health checkups.
The Company is also steadily advancing the construction of GREE Hospital, further ensuring that
employees are provided with comprehensive care across all aspects of life. Moreover, the Company
Working hour mechanism工时机制
has established a Sunshine Fund to provide targeted assistance to employees facing financial
While adhering to standard working hours, each unit can set specific shift difficulties, ensuring the protection of their rights and benefits and improving their well-being and
schedules, which shall be approved by the Human Resources Department and happiness.
followed by employees.
Satisfaction Survey
The Company conducts annual employee satisfaction
surveys. During the reporting period, surveys covering multiple
aspects—such as job content and career development,
work environment and team atmosphere, management and
Overtime management
leadership, compensation and benefits, company operations,
The Company shall not compel or covertly compel employees to work overtime. and party-building activities—were conducted both online and
Any overtime worked shall be compensated with corresponding time off or in-person. The surveys covered various employee groups.
overtime pay. Employee satisfaction reached a score of 84.8, an increase
of 0.9 points compared to the previous year, marking several
consecutive years of improvement.
Based on the feedback from employees and areas with lower
satisfaction levels identified in the survey, the Company
Health first has formulated and implemented a series of targeted
improvement measures. These include optimizing the
Employees who are unwell, pregnant (in the seventh month or later), or frontline work environment and office hardware/software,
breastfeeding, shall not be scheduled for extended working hours. enriching training formats and content, upgrading employee
shuttle and accommodation services, and offering diverse
physical and mental health activities. These efforts are aimed
at continuously improving employee satisfaction.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Talent Training and Training Management
Development Through the long-term implementation of the system and the establishment of a regular training mechanism, the Company continuously
Talent is the core driving force for the high-quality development empowers employees and injects sustained and strong internal momentum for its own development. The Company has established and
of the company. The Company adheres to the core philosophy of implemented policies such as the Employee Training Management Measures, Training Funds Management Measures, and Internal Instructor
talent self-cultivation, placing great importance on the growth and Management Measures to ensure the rational allocation of training resources and provide systematic support for employees' career
development of employees throughout their entire career lifecycle. development. The Company adheres to the core philosophy of talent self-cultivation, with a focus on capacity building, and has created a
We continuously improve our talent training and development four-level training system: company → department → division → individual. This system ensures systematic, hierarchical, and precise talent
system. Through systematic institutional frameworks, innovative development. In line with business development needs and the career development paths of various roles, the training system is clearly
and diversified training models, and comprehensive development divided into the following main categories: new employee onboarding training, job skills enhancement training, management capability
support, the Company establishes growth pathways for employees development training, and specialized safety training. This structure ensures that the growth needs of all employees (the Company has no
at various levels and from diverse backgrounds. This approach part-time staff) are fully covered. The training organization adopts a combination of online and offline methods, supplemented by both internal
supports employees in enhancing their skills and advancing their and external training, with the Human Resources Department coordinating the overall planning and business departments assisting in the
careers, while aligning individual development with the Company's implementation. Training is conducted through various formats, including regular courses, thematic seminars, and on-the-job coaching.
strategic objectives for a synergistic and integrated approach. Additionally, a comprehensive training evaluation and feedback mechanism is established, forming a closed-loop management cycle of
"planning – implementation – evaluation – optimization".
Four-Level Training Plan
全员学习四级培训计划体系Four-Level Learning&Training Plan System Involving All Staff
Level Training plan Training focus
Company level Strategy support for Key business Promotion of
Strategic level Key group training
plan (level 1) implementation development cultural quality
During the reporting period
Department level
Project operation of key business In-depth training of key groups
plan (level 2)
Business level
the average training hours per Division level Business innovation Team development Management Technical experience
employee exceeded plan (level 3) development construction experience inheritance inheritance
Individual level
plan (level 4)
Working performance
improvement
Occupational
development challenge
Knowledge and
skill reserves
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
During the reporting period, the Company continued to optimize its employee training system, focusing
on two core areas: refining training types and building a comprehensive course system. On the training AI Empowerment Training
front, the Company maintained and enhanced core categories such as new employee onboarding
training, job skills improvement training, and management capability development training, ensuring In June 2025, the Company launched the "Smart Future:
full coverage of employees' career development needs across the entire lifecycle. On the curriculum GREE AI Empowerment Training Program", aimed at
side, the courses were systematically planned based on business development and job requirements, enhancing employees' AI expertise and practical capabilities,
covering key company-level topics such as AI empowerment, lean management, cutting-edge and cultivating digital and cross-functional talent. The training
technologies, and general content on product compliance and safety. was closely aligned with business scenarios and focused
on problem-solving. It followed a phased, tiered approach,
阶梯式人才培训类型Tiered Talent Training Types incorporating online challenges, case studies, hands-on
exercises, and a point-based progression system to track
A systematic development plan is formulated for new hires, featuring centralized training upon
learning outcomes. The program incubated 10 internal AI
New onboarding that covers corporate culture, management systems, and core business processes.
trainers and established a full-stage curriculum system AI Training Classroom Interaction
Employee The HR Department collaborates with various functions to tailor development programs based
Training on position-specific competency requirements. Through one-on-one mentorship and the "master- covering “Basic Theory + Tool Practice + Scenario Application”.
apprentice" model, new employees are supported in quickly integrating into the Company and
mastering job-essential skills.
"GREE Star" 2025 Graduate Onboarding and Development Program
The Company conducts tiered and categorized vocational skills training closely aligned with business
needs, focusing on key business areas such as technology R&D, production operations, quality The 2025 graduate training program was developed under the "3-6-1" system model, with
Vocational
management, and functional support. This training covers multiple job categories and precisely matches unified planning and execution of training initiatives. Focusing on the core goal of “cultivating
Skill
post requirements. A blended learning model is adopted, supported by a closed-loop management
Training high-quality talent with strong identification with corporate culture and job competence”, the
system encompassing "needs assessment—course development—implementation execution—effect
Company implemented phased training, including robust onboarding training for the 2025
tracking". Training effectiveness is ensured through the cultivation of internal instructors and collaboration
with external resources, continuously enhancing employees' professional competencies and business cohort of university graduates. This helped graduates quickly integrate into the corporate
support capabilities. culture, improve comprehensive professional skills, and smoothly transition into the workplace.
The Company hosted a high-standard graduate onboarding
During the reporting period, the Company launched the “Cornerstone Plan” Supervisor Training Camp and ceremony, inviting for the first time graduate parent
the “Spark Plan” Team Leader Training Camp for group technology/management supervisors and production representatives and faculty representatives to attend. The
team leaders. Combining “online universal training + offline targeted training”, these programs enhanced the
ceremony fostered a strong sense of corporate identity and
comprehensive leadership capabilities of frontline management cadres. Supervisor Training Camp: Focused
belonging among the new graduates through its meaningful
on two main themes, “Management Fundamentals” and “AI Tool Applications”, addressing management
Leadership pain points with courses on management thinking, AI efficiency enhancement, and team motivation. Through and ceremonial format. The Company coordinates university
Training activities such as morning sharing sessions, face-to-face meetings with middle cadres, final presentations, graduate production internships and regularly organizes visits
and external visits, the program captured management experience, helping supervisors broaden their and research to accurately understand internship needs
management perspectives and enhance practical management capabilities. Team Leader Training Camp:
and effectively enhance internship outcomes. Concurrently,
Closely aligned with the team leader competency model, focusing on three directions: “Professionalism”, Graduate Onboarding
the Company implements training and certification for
“Production Management”, and “Team Management”. Courses covered new generation management, quick Boot Camp
changeover in production, lean production, etc., fully integrating case studies, best practice sharing, external graduate mentors, helping them clearly define their roles and
visits, and other training formats. The program focused on key pain points and practical difficulties in team responsibilities, thus building a strong mentorship foundation
management, effectively enhancing the practical management capabilities of team leaders. for graduate development.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Employee Development
GREE Electric Appliances' Diversified Talent Development System
Supported by a dual-track "management +
professional" talent development system, the The Company has always regarded talent as our most valuable asset and is committed to building a scientific and comprehensive talent echelon
Company provides employees with a full career- system, providing diversified growth and development pathways for employees of different types and levels.
cycle growth ladder—from new hires to senior
executives and seasoned experts—ensuring deep
integration between individual growth and corporate
strategy. Within the professional grade evaluation
track, the Company establishes certification For technical and management personnel, For frontline employees, the Company has Employees with outstanding performance
criteria centered on performance outcomes, the Company has innovatively developed established a robust skill grade evaluation are given priority for promotion
supplemented by professional skills, forming a a three-channel career development mechanism, encouraging them to refine opportunities and supported in participating
full-process evaluation system encompassing path—"professional, managerial, and their skills and enhance their professional in internal job competitions, helping
"initiation–application–review–assessment– comprehensive development"—offering proficiency. outstanding talent stand out and promoting
public announcement". Simultaneously, through employees multi-dimensional growth the deep integration between personal
standardized procedures, internal workers' options. career development and the Company's
congresses are convened to deliberate and vote on strategic objectives.
grade evaluation plans, thereby ensuring fairness,
Talent Development Pathways人才培养通道
transparency, and standardization in the evaluation
Vertical development
process.
Executive Expert designer
Administration
function
Middle-level
Senior designer
cadre
Production Marketing
New employee
operation and sales
lateral Advanced
Division head
Management development Professional designer
direction direction
Process Technology
Team leader quality R&D Designer
Specialist Design officer
Vertical development
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
发展助力Development Support University-Industry Cooperation
The Company places high importance on the personal growth and development of our employees. We The Company continues to deepen our "resource sharing, mutual
have clearly stipulated that all employees who obtain associate, bachelor's, or master's degrees, or integration" university-industry cooperation mechanism, enriching
acquire position-required special operation certificates and special equipment safety management and collaborative innovation models in industry-academia-research.
operator certificates, may apply for reimbursement of relevant expenses upon verification of eligibility. We have established long-term, in-depth partnerships with
Concurrently, for skilled technical personnel, the Company provides learning resources and guidance multiple key universities nationwide, strengthening talent supply-
for various trades (e.g., welders) and grants vocational skill level certifications in accordance with the demand alignment and technological innovation synergy. In 2025,
Skill Grade Evaluation Management Measures. the Company hosted a "Graduate Onboarding Ceremony and
University Faculty Open Day", enhancing interaction and joint
For high-level technical talent, the Company offers comprehensive compensation safeguards and talent cultivation with academic institutions. We co-developed
development support. For example, the Company provides post-doctoral researchers with a "dual specialized course programs with universities, integrating
mentorship" mechanism, in which senior executives and technical experts offer career and technical industry practical projects into academic curricula to deepen
guidance respectively. The Company also provides fully furnished talent apartments with home industry-education integration and precisely cultivate high-quality,
appliances, shuttle bus services, and uncapped scientific research funding. The Company supports versatile talent adapted to industrial needs. The Company also
post-doctoral researchers in undertaking national and provincial-level R&D projects and assists them organized a Graduate Innovation Practice Camp, attracting nearly
in applying for relevant talent programs. Additionally, through initiatives such as birthday greetings and 100 outstanding students to engage in practical exploration
holiday condolences, the Company fosters a secure and comfortable working and living environment and stimulate innovative thinking. Through diversified campus
for doctoral researchers. recruitment and university-industry collaboration initiatives, the
Company proactively builds a pipeline of exceptional talent
During the reporting period with innovation potential, continuously fueling our high-quality
development.
the Company provided tuition reimbursement support for academic
advancement and skill upgrading to over
We also completed vocational skill level certifications for
Closing Ceremony of the Specialized Course "Strive Together in Youth, Shine for the Future"
Program by Gree Electric Appliances & 2025 University-Industry Symposium
Huazhong University of Science and Technology
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Occupational Health and Safety
The Company always prioritizes employee health and life safety.
During the reporting period
By improving organizational structure, refining regulatory systems,
strengthening protective measures, and regularly conducting
safety training and emergency drills, we comprehensively
fortify occupational health defenses and strictly adhere to work
safety baselines. This creates a safe, healthy, and reliable the Company conducted totaling
working environment for employees, supporting the Company's
sustainable development. occupational
Occupational Health health-related training hours
sessions
The Company strictly follows
occup atio na l h ea lth laws and
regulations, formulating systems
such as the Occupational Disease
Prevention Management Measures
and Occupational Safety and Health the employee health the employee work- the number of
check-up rate was related injury insurance occupational disease
Education Management Measures
coverage rate was cases was
to establish a standardized and
institutionalized occupational health
management system. Through 100% 100% 0
measures like strengthening
institutional safeguards, optimizing
management processes, and
implementing system certifications, ISO 45001 Occupational
the Company builds robust Health and Safety
Management System The Company places high importance on occupational disease prevention and employee physical and mental health management,
occupational health protection
Certification establishing a comprehensive occupational health protection system. For employees in positions with occupational hazards, the Company
barriers at the institutional level,
provides labor protective equipment such as safety shoes, earplugs, and protective masks. The Company organizes annual occupational
comprehensively preventing
health examinations and special testing for occupational hazard positions, preventing occupational risks and injuries at the source. The
occupational risks and safeguarding
Company is also equipped with emergency equipment such as AEDs and medical kits to fully protect employee health.
employees' physical health and
legal rights.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Work Safety
Adhering to the occupational health and safety policy of “People- Safety Inspections
Oriented, Work Safety, Health Protection, Care for Life”, the
Company has established a Work Safety Committee chaired by The Company attaches great importance to fire safety management, establishing a dedicated fire safety management organization,
the Chairman. The Safety Committee Office serves as its standing implementing a 24-hour duty system for full-time firefighters, and building a normalized fire safety prevention and control system. During
body, fully responsible for the Company's occupational health and the reporting period, the Company organized fire inspection personnel to conduct routine fire inspections 12 times per month and special
safety management. During the reporting period, the Company investigations 12 times per month, focusing on key areas such as liquefied gas pipeline safety, electrical safety, hazardous materials
continuously improved its safety management system, updating management, and fire protection equipment operation. A total of 248 potential hazards were identified, and relevant departments were
and revising core policies such as the Company Work Safety supervised to complete corrective actions within the specified timeframe, achieving a 100% rectification completion rate. This effectively
Responsibility System Management Measures and the Work- eliminated fire safety vulnerabilities. The Company compiles inspection findings at the end of each month and issues a special fire safety
related Injury Management Measures. With a well-established report, urging all units to strengthen hazard prevention and management, thereby effectively safeguarding employees' life and property safety
organizational structure, clear responsibility mechanisms, and as well as production and operational security.
comprehensive institutional safeguards, the Company effectively
protects employee life and health and ensures corporate safety. Hazard Reporting Mechanism
To effectively promote the transformation of the Company’s safety
management model towards prevention, continuously deepen Employees can report hazards to responsible personnel via email or the fire duty hotline. Responsible personnel
the dual prevention mechanism of safety risk tiered control and are required to verify hazards on-site and follow up on the handling process throughout. Each month, the
hazard identification and control, the Company established an Company compiles statistics on rewards and disciplinary actions in accordance with relevant management
internal hazard reporting reward system. A total of RMB 423,200 measures and issues a corresponding notice. Prior to month-end, the results are submitted to the Corporate
in rewards was distributed, fully mobilizing employee initiative in Management Department for implementation of rewards or disciplinary actions concerning relevant units or
safety management and continuously improving the efficiency of individuals
safety management and hazard control.
Hazard Reporting Record Verification Hazard Handling Assessment/Reward
During the reporting period
The Company emphasizes both guidance and supervision, encouraging all factories and departments to conduct
routine self-inspections and self-corrections of safety hazards. A total of 24 relevant factories and departments
are required to strictly implement the fire safety duty system, effectively reducing safety risks and earnestly
RMB
safeguarding corporate assets and employee personal safety.
was distributed for internal hazard reporting
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
安全演练Safety Drills 安全培训Safety Training
The Company continuously organizes
various types of emergency drills to The Company places great emphasis on work safety training, having
build a practical, action-oriented safety established a multi-level, full-coverage safety training system. It
prevention and control defense line. Fire regularly conducts special training for key responsible persons and
emergency evacuation drills are carried safety management personnel to strengthen their decision-making
out following the full-process procedure capabilities for work safety. It organizes skill enhancement training
of "meeting deployment – plan update for key positions to improve the practical safety skills of critical
– safety training – drill organization – personnel. It also holds work safety knowledge contests to stimulate
effectiveness evaluation". From November proactive learning of safety knowledge among all employees, creating
to December 2025, 15 organizing units, a strong safety culture atmosphere. These efforts comprehensively
in collaboration with the volunteer fire 2025 Fire Emergency Evacuation Drill enhance employee safety awareness and practical skills, effectively
brigade, conducted 42 building-by- safeguarding personal safety and the security of the Company's
building fire emergency evacuation drills production operations.
in batches across the headquarters
campus, involving 28,000 participants. In
addition, 9 gatehouse emergency drills
were held, simulating real-life scenarios
such as abnormal personnel gathering
and blocking roads, as well as attempts
to storm the gate. These drills enhanced
preparedness and response capabilities
through realistic practice, safeguarding 2025 Gate Guard Emergency Drill
campus production order and employee
The Company Holds a Firefighting Practical Skills Competition
personal safety.
During the reporting period
the Company conducted with a total of
“Ge'an Cup” Safety Skills Enhancement Training for
Knowledge Contest Key Responsible Persons and
Safety Management Personnel
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Strengthening Control
Strategy
over Chain Partners
Adhering to a supply chain management philosophy of compliance control and The Company identifies risks and opportunities related to the supply chain, evaluates their impact cycles, and implements targeted
collaborative win-win, the Company has established a full-process, systematic measures accordingly.
supply chain governance system. By improving the full lifecycle management
of suppliers, promoting diversified sourcing and localization substitution, Impact
Risk Type Specific Description Response Measures
strengthening compliance control over human rights, environmental protection, Period
and conflict minerals, and simultaneously building efficient communication
Implement a "diversification to eliminate sole-source" strategy,
mechanisms and empowerment training systems, the Company continuously Procurement of core components is tilted
qualifying multiple suppliers for core components to ensure
towards certain suppliers, posing a single- Medium
optimizes our supply chain structure and enhances risk resistance capabilities. rapid switching capability; advance localization initiatives
source dependency risk; high reliance on Term, Long
While ensuring supply chain security and stability, it works jointly with partners by establishing a localization list for core components in air
Supplier imported key components may be affected by Term
conditioning; standardize the design of core components to
to build a responsible and sustainable industrial ecosystem, thereby providing Dependence external supply fluctuations.
increase commonality and standardization rates.
supply chain guarantee for the Company's high-quality development.
Governance Price fluctuations of raw materials such
Short Term,
Optimize supply channels and the supply chain system to
as copper and aluminum directly impact reasonably control procurement costs; promote waste recycling
Medium
The Company’s supplier management is coordinated under the leadership of the procurement costs, putting pressure on the and reuse to reduce raw material consumption through
Cost Term
responsible company leader, with departments such as the Material Procurement supply chain's profitability. resource circulation.
Fluctuation
Center and the Outsourced and Purchased Parts Management Department
carrying out related work. The Company has formulated and implemented the The supply chain covers a wide scope, and Establish a full lifecycle supplier management system; verify
Supplier Management Measures, defining supplier management requirements for suppliers' compliance levels in areas such as compliance certificates such as ISO45001 and ISO14001 for
human rights, environmental protection, and 100% of suppliers during the access phase; conduct quarterly
the headquarters and all subsidiaries. Furthermore, the Company continuously Long Term
Compliance conflict minerals vary, potentially exposing the surprise inspections regularly and update special qualifications
deepens supply chain partnerships, optimizes supply channels and supplier Company to regulatory penalties and brand like HSF/C-TPAT annually; formulate a Conflict Minerals Policy
Control
structures to meet production and operational reputation risks. and conduct due diligence using CMRT/EMRT templates.
needs, strengthens organizational development and 供应链安全管理体系认证证书
ideological guidance to build a high-quality, integrity-
证书编号：ZRC25SCSMS0093R0L
兹 证 明
珠海格力电器股份有限公司
based supplier management team, and improves
统一社会信用代码：91440400192548256N
注册地址：珠海横琴新区汇通三路 108 号办公 608
审核地址：中国广东省珠海市香洲区金鸡路 789 号
Opportunity Impact
建立的供应链安全管理体系符合：
internal control mechanisms for supplier management Specific Description Response Measures
ISO 28000：2022《供应链安全管理体系的规范》标准的要求
Type Period
证书覆盖范围：
空调、制冷制（热）设备的研发、制造和销售及其场所涉及的
to enhance risk prevention capabilities. Through
供应链安全管理活动
发证日期：2025 年 11 月 26 日 有效期至：2028 年 11 月 25 日
standardized and efficient supply chain management, Under the global ESG development trend, a
green, low-carbon, compliant, and transparent Conduct regular environmental training for suppliers, covering
the Company ensures the security and stability of its
supply chain has become a core competitiveness environmental regulations and carbon emission control,
supply chain, supporting the sustainable development for enterprises. Policies support sustainable Long Term to enhance partners' green capabilities; mandatorily verify
of the Company. The Company has obtained ISO Sustainable supply chain construction, and market demand for supplier compliance in environmental protection, human rights,
Supply Chain Security Supply Chain environmentally compliant products continues to and other aspects, selecting high-quality, sustainable suppliers.
Management System grow, creating space for supply chain upgrades.
certification. Certification Certificate
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Impact, Risk and Opportunity Management
The Company upholds the baseline of compliance and its sense of responsibility,
安全保障Safety Assurance
strengthening the management and control of human rights, environmental protection,
and conflict minerals in supplier management. Through strict audit access, dynamic The Company focuses on enhancing supply chain security and resilience, adopting multiple measures to build a diversified
supervision and rectification, and standardized conflict mineral traceability, the and stable supply chain system. In terms of core component assurance, it advances localization initiatives by developing
Company ensures supplier compliance, protects labor rights, preserves the ecological localization lists for core components in air conditioning, steadily promoting the localized supply of key components to
environment, and promotes sustainable supply chain development. reduce dependence on external sources. Simultaneously, the Company implements a "diversification to eliminate sole-
source" strategy, addressing the challenge of single-supplier dependency. For core components, we mandate reserving at
准入与评价Access and Evaluation least 2 or more qualified suppliers to ensure rapid switching capability. Through standardized design of core components,
the Company continuously improves product commonality and standardization levels, enabling seamless substitution of
The Company integrates compliance and risk prevention and control throughout the products from different suppliers and further enhancing the supply chain's resilience. Measures such as data encryption
entire supplier access process. Access evaluation and due diligence focus on core and access control are implemented to mitigate risks of cyberattacks and information leakage, safeguarding supply chain
dimensions such as quality systems, technical capabilities, C-TPAT anti-terrorism data security and business confidentiality.
security, GREE environmental protection standards, HSF compliance, and production
licenses, comprehensively verifying supplier qualifications. In terms of process, new Furthermore, the Company maintains a dynamically updated supplier resource database, categorizing and managing
suppliers are required to complete preparation, preliminary review, sample inspection, suppliers by industrial clusters. Regular quarterly assessments of existing suppliers' supply capabilities are conducted,
category assessment, and integrity document signing in sequence. Assessments are and based on evaluation results, the supplier pool is dynamically optimized to ensure a stable and high-quality roster
conducted by the Outsourcing & External Procurement Management Department of available suppliers. Through systematic and refined supply chain management practices, the Company effectively
and submitted for approval. Regarding frequency, access evaluation is conducted safeguards the continuity of our production operations and supply chain security.
once, while special due diligence items such as HSF compliance, C-TPAT anti-
terrorism security, and production licenses are updated annually. Suppliers approved
under special terms are subject to dynamic tracking. The Company organizes
suppliers to participate in special training and strengthens compliance management
through regular performance monitoring, issue rectification, and dynamic elimination
mechanisms, building responsible and sustainable supply chain partnerships.
考核与退出Assessment and Exit
The Company implements a quarterly supplier quality evaluation mechanism,
reducing the supply proportion for suppliers ranked at the bottom. Suppliers that fail to
rectify issues effectively or exhibit persistent quality non-conformance are suspended
from supply qualifications. Suppliers that have not supplied goods for over one year
are also subject to qualification suspension, achieving dynamic survival of the fittest.
Through quantitative assessment, tiered control, and data monitoring, the Company
realizes dynamic management, ensuring continuous optimization of the supply chain.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
S
可持续供应链 ustainable Supply Chain
The Company places high importance on supplier ESG performance and has formulated the Supplier Code of Conduct, which sets forth specific management requirements for suppliers in areas such as business
ethics, health and safety, employee rights protection, and environmental protection. Comprehensive environmental and social impact assessments are conducted for all suppliers. A supplier's labor management
performance, along with factors such as product or service price and quality, influences its evaluation and assessment. In addition, the Company requires all new suppliers to commit to adhering to the Business Social
Compliance Initiative (BSCI) Code of Conduct, ensuring compliance with international standards in social responsibility, labor rights, and environmental protection, thereby promoting the sustainable development of the
supply chain. Under equal conditions, the Company will give priority to suppliers that meet the labor management requirements below and ensure the full protection of employee rights and interests.
《供应商Social and Environmental Aspects of the Supplier Code of ESG Conduct
环境和社会责任体系认证Environmental and social responsibility system certification Compliance with labor laws and regulations
Certification in ISO14001 and ISO45001 reflects the supplier's This includes, but is not limited to, prohibiting all forms of forced labor
commitment to responsible business practices. Furthermore, and ensuring respect for employees' fundamental human rights. Child
holding certifications such as SA8000 (Social Accountability), labor shall not be used, and all workers must be at least 16 years of
BSCI (Business Social Compliance Initiative), and C-TPAT (Supply age. Additionally, there shall be no discrimination in hiring, promotion,
Chain Security) demonstrates the supplier's proactive efforts in or other employment practices based on age, gender, race, religion,
fulfilling social responsibilities. sexual orientation, physical condition, or any other factor.
Safe and healthy working environment
Employee welfare and rights protection
Providing a safe and healthy workplace is a fundamental requirement.
This includes, but is not limited to, providing necessary personal Social insurance shall be purchased for employees, and the
protective equipment, implementing special protective measures income level of each employee shall not be lower than the local
for hazardous positions, conducting regular health examinations to statutory minimum wage standard. Relevant wage structure and
monitor employee well-being, establishing effective accident prevention payment records shall be available as proof.
and management systems, performing regular inspections of special
equipment with records maintained, ensuring fire safety and complete
fire-fighting facilities, and conducting fire evacuation drills.
W
工作时间和休息休假制度 orking hours and rest leave system Freedom of association
Suppliers shall comply with national regulations concerning working hours and The rights of employees to freely associate and engage in
reasonably arrange employee rest and leave. Overtime compensation shall be collective bargaining shall be respected.
provided in accordance with local labor laws to ensure appropriate remuneration.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
《供应商Social and Environmental Aspects of the Supplier Code of ESG Conduct
Requirements for Environmental Protection Control of Hazardous and Toxic Substances
Evidence of compliance with environmental regulations: Presence of toxic or hazardous substances in products:
Suppliers shall provide documentation or reports demonstrating Suppliers must provide relevant test reports proving their
compliance with national and regional environmental products are free from toxic and hazardous substances
regulations, including aspects such as wastewater discharge, regulated by laws such as the EU RoHS Directive (Restriction
exhaust gas emissions, and waste treatment. of Hazardous Substances).
Plans and objectives for reducing environmental impact: Hazardous substance testing equipment: Suppliers shall
Suppliers shall provide specific improvement plans and possess the necessary hazardous substance testing
objectives, such as reducing carbon footprint, improving equipment or send samples to third-party authoritative testing
energy efficiency, and minimizing waste generation. agencies for analysis and provide corresponding test reports.
Warehousing, Material Requisition, Green Supplier Management
and Production Line Management Green supplier certification process and list: Suppliers shall
Labeling and isolation of toxic and non-toxic substances: have a clear green supplier certification procedure and
Suppliers shall ensure toxic and non-toxic substances in maintain a list of green suppliers.
warehousing, material requisition, and production lines are clearly Hazardous substance control agreement: Sign hazardous
labeled and stored separately to prevent cross-contamination. substance control agreements with green suppliers or require
Identification of pollution risks in production processes: Suppliers relevant commitments from them, and ensure that valid third-
shall identify potential environmental pollution risks during party accredited testing institution reports on hazardous
production and implement corresponding control measures. substance content are kept on file for these suppliers.
廉洁管理Integrity Management
The Company upholds the bottom line of business ethics by maintaining an open channel for supplier self-recommendation,
providing equal access opportunities for high-quality partners. Concurrently, we sign the Integrity Agreement, Statement on
Integrity and Self-Discipline, and Letter of Commitment with suppliers and relevant internal personnel, clearly defining the
boundaries for ethical cooperation. During the supplier admission stage, the Company conducts anti-commercial bribery S
供应商反馈渠道 upplier Feedback Channels
and anti-corruption investigations on suppliers to ensure they meet compliance requirements. Throughout the cooperation
Complaint Hotline: (0756) 8669807
period, the Company regularly conducts anti-commercial bribery and anti-corruption audits of suppliers, continuously verifying
compliance in the business relationship between the supplier and the Company. Furthermore, through regular anti-corruption
and anti-bribery awareness campaigns and training, the Company strengthens integrity awareness among all employees, dual Complaint Email: jiancha@cn.gree.com or caigoujicha@cn.gree.com
reinforcing the supply chain's integrity defense line from both mechanistic and ideological perspectives, maintaining a clean
and honest business environment and long-term stability.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
供应商沟通Supplier Communication 供应商审计Supplier Audit
The Company has established a multi-dimensional and efficient supplier communication and collaboration system to ensure smooth The Company implements rigorous regular audits and
information flow and seamless cooperation within the supply chain. elimination mechanisms. Annually, we organize reviews and
S
供应商沟通方式 upplier Communication Methods human rights risk audits for high-risk Tier 1 suppliers and
some Tier 2 and Tier 3 suppliers to ensure their continued
compliance with labor management standards and the
Supplier Code of ESG Conduct. Through these audits, the
Re g u l a r l y c o n v e n e sp e cia l d iscu ssio n Proactively disseminate key information Implement a dynamic delivery and logistics Company promptly identifies and addresses existing issues
meetings on delivery, quality, and cost, to suppliers, including graphics and text tracking mechanism to monitor supplier with suppliers, ensuring the stability and sustainability of the
focusing on core topics such as material information, quality standards, and order shipment progress and promptly coordinate
supply chain. For suppliers that fail to meet requirements, the
requirements planning, inventory preparation, details. A supplier portal has been established to resolve potential issues in the logistics
raw material prices, and incoming shipment to enable real-time information sharing, process.
Company can implement corresponding corrective measures
schedules. In-depth engagement with ensuring information symmetry between both and, if necessary, initiate the elimination mechanism to
suppliers is conducted through email, on-site cooperating parties; guarantee the overall quality of the supply chain.
meetings, and telephone communication;
Supplier Training
The Company has established an annual routine environmental training
mechanism for suppliers, focusing on core topics such as environmental During the reporting period
regulations, waste management, carbon emission control, and sustainable
supply chain development. Systematic training is provided to key suppliers the Company conducted training
to effectively enhance their environmental compliance awareness and through a combination of online and
offline formats, covering a total of
practical capabilities, laying a solid foundation for building a green supply
chain and safeguarding the sustainable development of the industrial
ecosystem.
suppliers
For key process areas such as injection molding and sheet metal spraying,
the Company organizes specialized on-site training sessions, inviting
supplier management personnel to conduct field learning and exchanges
at relevant branch factories of the Company. Through immersive with
experiences and practical guidance, the Company precisely strengthens
suppliers' on-site management capabilities and environmental control
levels in processes, promoting green collaboration across all supply chain 172 participants
segments and ensuring environmental compliance throughout the product
lifecycle as well as high-quality supply chain development.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
C
管理产冲突矿 onflict Minerals Management
The Company absolutely tolerates no form of participation in or incitement of human rights violations Indices and Goals
or environmental degradation resulting from armed conflict. To this end, the Company strictly adheres
to and requires all suppliers to comply with domestic and international conventions, regulations, and
industry initiatives concerning responsible minerals. We have formally formulated and released the
管理指标Management Indices
Conflict Minerals Policy of Gree Electric Appliances, Inc. of Zhuhai, committing that none of GREE
Electric Appliances' products contain conflict minerals that directly or indirectly finance armed groups
in conflict-affected and high-risk areas. Simultaneously, we explicitly require suppliers not to procure 2025 Data
or use conflict minerals (including but not limited to tin, tantalum, tungsten, gold, cobalt, natural mica,
Supplier localization ratio 13.1% Number of suppliers passing environmental
and their derivatives), and this policy has been comprehensively communicated to suppliers at all
audits 94
levels, mandating strict compliance.
Total number of suppliers 1,118 Number of suppliers passing social audits 94
The Company conducts annual conflict minerals due diligence on suppliers of products containing
relevant minerals, utilizing the Conflict Minerals Reporting Template (CMRT/EMRT) of the Responsible Number of new suppliers 148 Total supplier training hours 598.5
Minerals Initiative (RMI). Suppliers are also required to conduct conflict minerals due diligence on their
upstream suppliers. By regularly disclosing the results of this due diligence, the Company continuously
improves the transparency of its responsible mineral sourcing investigation findings.
During the reporting period Management Goals
the Company surveyed a total of
Complete conflict mineral due diligence for
of suppliers by the end of 2030.
suppliers
traced back to of which
Equal Treatment for Small and
and refiners
smelters 52%
certification
have obtained RMAP Medium-Sized Enterprises
The Company consistently upholds the philosophy of “fair competition, joint development”,
actively fulfills its social responsibilities, and treats small and medium-sized enterprises (SMEs)
Raw material origin traceability has been completed for
equally. By opening supply chain resources, providing technical support, and sharing market
channels, the Company helps SMEs enhance their competitiveness and promotes the synergistic
development of upstream and downstream industry chains. As of the end of the reporting period,
the Company had no overdue payments to SMEs.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Fulfilling Our Mission to Support Society
The Company consistently upholds its corporate citizenship responsibilities. While deeply engaged in industry and striving for excellence, the
Company actively participates in social welfare initiatives. We focus on areas such as social assistance, rural revitalization, and community GREE Electric Appliances Donates Funds to Support
welfare programs, fulfilling its long-term commitment to society through concrete actions. Hong Kong Fire Relief Efforts
On November 26, 2025, a severe fire broke out in Wang Fuk
Engagement in Social Assistance Court, Tai Po, Hong Kong, causing significant casualties and
property damage, with the disaster affecting the entire nation.
The Company deeply embeds the philanthropic spirit of "when one place is in trouble, assistance comes from all quarters" into its corporate GREE Electric Appliances paid close attention to the situation
actions. We believe that corporate social responsibility is particularly tangible in the face of major disasters and emergencies. Therefore, the and announced on November 28 that it would urgently
Company has established a rapid response mechanism, committed to mobilizing core resources such as products, technology, and capital donate HKD 12 million to Hong Kong, specifically allocated
at the earliest opportunity to provide practical and urgently needed assistance to affected communities, serving as a reliable pillar of support for emergency rescue operations, medical treatment for the
for society. injured, resettlement of affected residents, and post-disaster
reconstruction efforts. Ms. Dong Mingzhu, Chairperson of
the Company, expressed her support, stating, "Stay strong,
格力电器捐赠千台取暖设备驰援西藏地震灾区GREE Electric Appliances Donates 1,000 Heating Units to Support Xizang Earthquake Relief Efforts Hong Kong! Together, let us stand united and overcome the
difficulties," conveying the Company's firm determination to
The earthquake disaster in Dingri County, Shigatse City, stand in solidarity with the people of Hong Kong during this
Xizang, touched the hearts of many. Upholding the principle challenging time.
of "when one place is in trouble, assistance comes from all
quarters", GREE Electric Appliances promptly responded to
the Initiative to Actively Donate Energy-Efficient and Safe
Heating Equipment to the Earthquake-Stricken Area in Dingri
County, Shigatse City, Xizang Autonomous Region issued by
the Department of Housing and Urban-Rural Development of
the Xizang Autonomous Region. The Company organized and
dispatched a substantial quantity of heating equipment and
other emergency relief supplies to fully support local disaster
relief efforts, helping affected residents stay warm and safe
Donation of Heating Equipment to the
through the winter. At noon on January 9, 2025, delivery Earthquake-Stricken Area in Dingri County,
vehicles loaded with 1,000 units of safe, convenient, and Shigatse City, Xizang
energy-efficient heating equipment officially departed from the
Chengdu base, rushing to the disaster-stricken area. GREE Electric Appliances Donates Funds to Hong Kong
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Community Welfare Initiatives Supporting Rural Revitalization
Corporate social responsibility is also reflected in sincere daily The Company regards serving the national rural revitalization strategy as an important responsibility and mission of the era. Upholding the
care for the community and long-term community building. We principle of "pragmatic and steadfast implementation", we not only provide financial donations to support regional collaboration and overall
encourage employees to engage deeply at the community level development but also place greater emphasis on leveraging its industrial and technological advantages to effectively address specific
through an organized and ongoing volunteer service system, challenges in rural areas related to infrastructure, livelihood security, and other areas. By empowering villages in a sustainable manner, the
carrying out diverse and meaningful public welfare initiatives across Company helps paint a new picture of thriving industries, livable ecosystems, and prosperous lives.
multiple dimensions such as cultural promotion, environmental
protection, and community services. Through these everyday
efforts, we put into practice the people-centered approach and the GREE Electric Appliances Donates RMB 1 Million to Support Rural Revitalization
commitment to creating a better future that underlies the vision of
"Made in China, Loved by the World." On June 30, 2025, an event to support rural revitalization was
held in the Guangdong-Macao In-Depth Cooperation Zone in
During the reporting period Hengqin. At the event, GREE Electric Appliances donated RMB
industrial development and infrastructure construction within
the GREE Electric Appliances Young the Cooperation Zone, as well as in areas benefiting from the
Volunteers Association organized a total of Zone's east-west collaboration and paired assistance programs
such as culture and arts, ecological
within the province. This initiative injects new momentum
into consolidating the hard-won achievements in poverty
environmental protection, and community alleviation and actively responds to the national strategic call for
services comprehensively advancing rural revitalization. The "6.30" Rural Revitalization Support Event in 2025
GREE Electric Appliances Donates Plateau Water Purification Equipment to Address Drinking Water Challenges
In May 2025, GREE provided water purification equipment for Jianshetang Primary School in Galeng Tibetan Township, Xunhua
Salar Autonomous County, Haidong City, Qinghai Province, completely resolving the challenge that had prevented teachers
and students from accessing clean hot water for 63 years. Thanks to GREE's products and advanced technology, teachers and
students at this school, located at the edge of the Qinghai-Xizang Plateau at an altitude of over 3,000 meters, now have access to
pure, high-quality hot water.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Environmental Compliance Emergency Management
Management In accordance with national regulations such as the Emergency Management Measures for Emergent
Environmental Incidents and considering the Company's environmental risk characteristics, the
In its production and operations, the Company implements national environmental protection Company has formulated the Emergency Response Plan for Sudden Environmental Incidents and filed
laws and regulations and emission standards, including the Environmental Protection Law of the it with the local ecological and environmental authorities as required. Concurrently, it has developed
People's Republic of China and the Law of the People's Republic of China on Environmental Impact emergency drill plans for environmental risk incidents, regularly organizing joint government-enterprise
Assessment. It fully implements the environmental protection responsibility system, has formulated and internal drills for various types of sudden environmental incidents. This ensures timely, orderly,
environmental management policies such as the Measures for the Administration of Environmental efficient, and appropriate response and handling in the event of a sudden environmental incident,
Protection Responsibility System, clearly defining the main environmental management responsibilities minimizing the impact on the environment and protecting personnel and property safety.
and tasks at all levels. It has established an environmental protection management organization
responsible for coordinating, organizing, and supervising environmental protection work. Aligning with
Multi-Theme Emergency Drills for Sudden Environmental Incidents
national environmental protection policy requirements, the Company translates national environmental
compliance requirements into continuous internal management actions, fulfilling its corporate
In accordance with the Emergency Response Plan for Sudden Environmental Incidents, the
environmental responsibility, continuously improving its environmental management level, and ensuring
Company regularly carries out emergency drills and training on themes including "fire and
environmental compliance. In 2025, the Company had no environmental pollution incidents.
explosion", "excessive waste gas emission", "excessive waste water discharge", "chemical
Environmental Management System
leakage", "hazardous waste leakage" and "radiation leakage". Through simulating real
scenarios and organizing multi-departmental joint response, the feasibility and operability
of the plan were effectively verified, and the emergency awareness and practical response
The Company continuously improves its environmental
capabilities of personnel at all levels were improved. After each drill, timely evaluation and
management system and earnestly implements environmental
summary are conducted, deficiencies found during the drill are rectified and optimized, and
management practices. As of the end of the reporting period,
emergency response procedures and resource allocation are improved accordingly.
the Company had obtained ISO 14001 environmental
management system certification. To master the actual
operation of the Company's environmental management
system and identify and improve deficiencies in system
operation, the Company conducts annual internal audits of the
environmental management system and annual supervisory
audits by external third-party certification bodies. The audits
cover EHS process control, compliance of documents and
records, pollutant treatment performance, and environmental
protection training. Non-conformities identified in the audits
are rectified timely to strictly ensure the compliance of
ISO 14001 Environmental
environmental management implementation and ensure the Management System Conducting Emergency Drills
effective operation of the environmental management system. Certification of the Company
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Environmental Protection Training
C
环保负责人合规培训 ompliance Training for Environmental Protection Principals
During the reporting period, the Company organized various types of environmental special training for
environmental protection managers, supervisors, and employees at all units. Training content included Following the annual environmental training plan, the Company organized special training
requirements of environmental policies and regulations, analysis of typical environmental cases, key for environmental managers and supervisors. The training was delivered by internal
points of the Company's environmental compliance management, environmental risk identification environmental business instructors, focusing on environmental management responsibilities,
and hazard control, pollution treatment process technology, operation and maintenance standards for typical cases on environmental management, management issues, environmental
pollution prevention facilities, and emergency response procedures for sudden environmental incidents. management technologies, and environmental compliance practices. To improve teaching
Through these training sessions, the environmental responsibility awareness of personnel at all units effectiveness, sessions included exchange segments where trainees could discuss instructed
was effectively enhanced, while the professional competence and performance capabilities of the content and challenging topics encountered in daily management with instructors and
environmental management team were improved. peers, sharing experiences and good practices in environmental protection, and learning
from each other. This special training further deepened the understanding of environmental
management among unit managers and supervisors, laying a foundation for further improving
the Company's environmental management level.
Site of Environmental Protection Training
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Green Factory Addressing Climate Change
The Company actively engages in green initiatives including environmental protection, energy
conservation, low-carbon development and emission reduction, and stands at the forefront of green Faced with the global challenge of climate change, Gree Electric Appliances has integrated
development. Proceeding from its environmental protection practices, the Company adheres to low-carbon transformation into its core strategy and established a full-process climate risk
the principle of balancing environmental protection and production, and continuously optimizes management system. Through greenhouse gas emission verification, risk and opportunity
clean production, selects green raw materials, improves product energy efficiency, adopts green identification, implementation of green technological upgrades and energy optimization, the
packaging, upgrades production processes, and establishes a green supply chain management Company continuously enhances its climate adaptability and sustainable development capacity,
system. The Company’s subsidiaries and branches actively pursue green factory certification. As of strengthens corporate resilience and fulfills its ecological responsibilities with concrete actions.
the end of the reporting period, the Company had a total of 22 green factories (including 10 national-
level green factories, 7 provincial-level green factories, and 5 municipal-level green factories), Governance
demonstrating Gree Electric Appliances' leading position in green manufacturing and its commitment
to sustainable development. The Company has formulated and implemented the Energy and Resource Conservation
Management Measures, defining management requirements for greenhouse gas-related work.
List of GREE Electric Appliances' National-Level Green Factories
It has established a greenhouse gas inventory team to conduct greenhouse gas inventory
and verification work. During the reporting period, the Company completed the verification of
Name Award Level Date of Award its 2025 greenhouse gas emission data and obtained the verification certificate. Through this
inventory and verification, the Company accurately identifies climate change-related risks,
Gree Electric Appliances, Inc. of Zhuhai National 2024
formulates emission reduction targets and corresponding measures, actively responds to the
Gree Electric Appliances (Wuhan) Co., Ltd. National 2024 national “dual carbon” strategy, and promotes its sustainable development.
Gree Electric Appliances (Luoyang) Co., Ltd. National 2023
Gree Electric Appliances (Chongqing) Co., Ltd. National 2022
Gree Electric Appliances (Shijiazhuang) Co., Ltd. National 2022
Zhuhai Kaibang Motor Manufacture Co., Ltd. National 2021
Zhuhai Linda Compressor Co., Ltd. National 2020
Shijiazhuang Green Renewable Resources Co., Ltd. National 2019
Gree Electric Appliances (Zhengzhou) Co., Ltd. National 2019
Gree (Changsha) HVAC Equipment Co., Ltd. National 2018
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Strategy
The Company follows the Task Force on Climate-related Financial Disclosures (TCFD) initiative and conducts climate risk management analysis with reference to its disclosure framework. It identifies climate-related
risks and opportunities, assesses their impacts on operations, and formulates targeted response strategies. Meanwhile, the environmental management units are advancing preparatory work including organizational
system establishment, scenario analysis methodology research, and climate-related training in a bid to strengthen climate change risk management.
Risk Type Specific Description Impact Period Response Measures
High temperature: High temperatures increase the risk of fire accidents, which can lead to personnel Install cooling facilities as needed; equip comprehensive fire safety facilities; conduct
casualties and damage to production facilities and equipment, resulting in increased capital fire safety emergency drills and provide relevant training to enhance employees' safety
expenditures. awareness and capabilities.
Typhoons, heavy rain, and flooding: Extreme weather events can cause interruptions in logistics Short Term, Plan multiple transportation methods and, based on weather alerts, arrange logistics and
Acute Risks
and transportation, affecting production and on-time delivery, leading to increased operational Medium Term transportation in advance to ensure material inventory reserves; continuously improve the
Physical Risks costs; the destructive power of extreme weather events can damage production equipment and emergency response mechanism for natural disasters, reserve emergency supplies, and
cause operational disruptions, resulting in higher equipment repair costs; employee safety and strengthen safety inspections; regularly conduct emergency drills and training for extreme
occupational health may be threatened, and workplace accidents could reduce production efficiency. weather events to enhance employees' safety awareness and capabilities.
Continuously monitor the trend of rising sea levels; consider the impact of rising sea
Chronic Rising sea levels: Operations in coastal areas may need to relocate inland, and fixed assets may be Medium Term,
levels when selecting operational locations; develop multiple regional suppliers for the
Risks damaged or prematurely decommissioned, leading to increased production costs. Long Term
same product category to ensure a stable supply of raw materials.
Due to the national deployment requirements for carbon peaking and carbon neutrality, a series of
Policy energy-saving and carbon reduction action plans, policies, and standards have been introduced, Medium Term, Monitor the dynamic changes in carbon policies and regulations in operational locations
Risks leading to increased compliance costs for carbon emissions; the trend of carbon taxes on Long Term to respond appropriately to policy and legal updates.
international trade imports and exports is becoming more apparent, which may result in higher costs.
The early phase-out of high energy consuming equipment leads to increased operational costs; the Develop photovoltaic projects to increase the share of renewable energy; use low-energy
Technology Short Term,
R&D and application of clean energy or innovative low-carbon technologies result in increased R&D consumption production equipment, optimize production processes, and explore and
Transformation Risks Medium Term
expenses. implement energy-saving and emission-reduction projects to reduce energy consumption.
Risks
As consumer awareness of environmental protection increases, there is a greater preference for
Market Short Term, Strengthen carbon reduction across the entire production, operations, and logistics
selecting green, low-carbon, and environmentally friendly products, which may lead to higher costs
Risks Medium Term processes.
for raw materials and the production process.
As a leading manufacturing enterprise, stakeholders expect the Company to assume on more
Reputation Short Term,
emission reduction responsibilities. If the Company fails to initiate low-carbon transformation Use clean electricity.
Risks Medium Term
planning in advance, it may suffer reputation damage.
Opportunity Type Specific Description Impact Period Response Measures
Global "carbon peaking and carbon neutrality" goals drive expanding demand for energy-saving and low-carbon
Technolog Continuously upgrade core technologies, expand overseas markets, and
technologies, with significant growth in market-oriented and international application space for relevant green Long Term
Export promote localized technology adaptation and global project implementation.
technologies.
Scenario Accelerated low-carbon transformation in multiple industries drives growing demand for cross-scenario application Medium Term, Develop scenario-based solutions, deepen cross-border cooperation, and
Expansion of green technologies, further unlocking market potential. Long Term expand the boundaries of application ecology.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Impact, Risk, and Opportunity Indices and Goals
Management
Under the unified risk and opportunity management framework, the Company Greenhouse Gas Emissions of GREE in 2023-20253
integrates the identification of climate change-related risks and opportunities
into daily operation and management. Climate change risks and opportunities
are mainly identified through policy dynamics tracking, industry trend research Total Greenhouse Gas Emissions Direct (Scope 1) Greenhouse Gas Emissions
and judgment, special evaluation and analysis, scenario simulation and
deduction, and are continuously tracked in links such as production and
operation, supply chain management and market expansion. Unit: tCO2e Unit: tCO2e
In terms of risk response and opportunity seizing, the Company promotes risk
prevention and control as well as opportunity transformation by improving the 2024 3,173,251 2024 2,682,418
climate change management system, strengthening the R&D and application 2025 2,200,430 2025 1,759,657
of low-carbon technologies, advancing the optimization and upgrading of
energy structure, and implementing special green transformation actions, thus
forming a closed-loop management mechanism to effectively enhance climate
adaptability and sustainable development capacity. Meanwhile, the continuous Indirect (Scope 2) Greenhouse Gas Emissions Greenhouse Gas Emission Intensity
improvement of climate risk management capacity helps strengthen the
enterprise's risk resilience and market competitiveness, providing support for
Unit: tCO2e Unit: tCO2e/RMB 10,000 Revenue
the long-term steady development of the Company's business.
The data calculation scope for 2024-2025 includes the Company’s headquarters and all its subsidiaries and branches. The data calculation
scope for 2023 is the Company's headquarters. The reduction in 2025 greenhouse gas emissions is primarily due to a substantial decrease in
the Company’s usage of R410a refrigerant.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Waste and Emission Treatment
The Company strictly abides by laws and regulations related to waste and sewage discharge, and has established a full-process control system covering waste gas, wastewater, solid waste and noise. Through improving
the organizational structure, perfecting rules and standards, upgrading treatment facilities and strengthening monitoring and assessment, the Company realizes compliant disposal and up-to-standard discharge of
pollutants and wastes, earnestly fulfilling its ecological and environmental protection responsibilities.
Pollutant Discharge
The Company strictly complies with laws and regulations including the Law on the Prevention and Control of Atmospheric Pollution of the People's Waste Treatment
Republic of China, the Law on the Prevention and Control of Water Pollution of the People's Republic of China, the Law on the Prevention and Control
The Company strictly abides by the Law on the Prevention
of Noise Pollution of the People's Republic of China and the Law on the Prevention and Control of Soil Contamination of the People's Republic of
and Control of Environmental Pollution by Solid Wastes
China. It has established a hierarchical management and control structure from top to bottom. The Company's management acts as the primary
of the People's Republic of China and other relevant laws
principal for environmental protection to oversee overall work; the environmental protection management department performs supervision duties;
and regulations, and has formulated the Measures for the
and branches undertake primary responsibilities for facility operation and maintenance. Meanwhile, the Company has formulated the Measures for
Classification and Recycling of Waste Materials, which clearly
the Administration of Environmental Protection Responsibility System, which clarifies the management responsibilities and work requirements of all
defines the management responsibilities and work requirements
departments, forming an environmental governance mechanism with clearly defined roles and responsibilities and collaborative efficiency.
of all units in the classification, collection, storage and disposal
In accordance with laws, regulations and the requirements of the pollutant discharge license, GREE Electric Appliances has established a sound of various wastes, providing institutional support for the
pollutant management system, formulated special management and monitoring plans, and invested in supporting environmental treatment facilities. standardized management of solid waste. During the reporting
It also entrusts qualified third-party institutions to regularly monitor pollutants such as waste gas, wastewater and noise. Satisfactorily, all monitoring period, the Company obtained the waste treatment system
results meet national and local emission standards. The Company's pollutant discharge has not imposed negative impacts on employees, local certification.
community residents and other groups. During the reporting period, all pollutants were discharged up to standard and the Company had no
environmental pollution incidents. Waste Treatment Methods废弃物处理方式
污染物处理方式Pollutant Treatment Methods
General Waste
The Company implements pollution control measures at various stages, including source collection, process control, and end treatment. Mainly generated in workshops, it is sorted and packed by
Measures conducted include building tailored waste gas treatment facilities for different types of waste gas, including injection molding type, transferred to a special general industrial solid waste
waste gas, heat exchanger drying waste gas and spraying waste gas. The main treatment technologies feature regenerative thermal warehouse for temporary storage through internal logistics,
Waste and finally handed over to qualified recycling manufacturers
oxidation, activated carbon adsorption-desorption coupled with catalytic combustion, etc. During the reporting period, all treatment
Gas facilities operated effectively, and waste gas discharge met national and local emission standards with no excess discharge. for comprehensive resource utilization.
Hazardous Waste
The Company has installed wastewater treatment facilities to treat industrial wastewater, with full-time management, operation and monitoring
personnel assigned. During the reporting period, all wastewater treatment facilities operated normally with no excess discharge. Mainly generated in workshops, it is sorted and packed by
Wastewater
type, transferred to a special hazardous waste warehouse
for temporary storage through internal logistics, and finally
The Company prioritizes low-noise equipment during equipment selection and plans process layouts to minimize noise impact. It disposed of in compliance by professional units with
improves high-noise equipment by adding soundproofing covers, silencers, and other measures. It also conducts regular noise corresponding qualifications.
Noise monitoring and provides protective equipment for operating personnel to ensure noise emission compliance.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Resource and Energy Utilization
The Company deeply integrates the efficient management of resources and energy into its strategy and operations, and has established a professional governance structure, closed-loop management system
and digital support system. Relying on a professional talent team, standardized reporting mechanism and technological innovation practices, the Company systematically promotes energy conservation and water
resource optimization, comprehensively improves resource utilization efficiency, and lays a foundation for the implementation of management measures.
To further advance the green and low-carbon transformation and continuously improve resource and energy utilization efficiency, the Company has established a systematic, professional and multi-level governance
structure for water and energy utilization. Meanwhile, it deeply integrates energy conservation, emission reduction and water conservation into the entire process of corporate strategic planning and daily operations.
The governance structure fully covers all production bases and functional departments. By clarifying management responsibilities, standardizing control procedures and strengthening process traceability, a closed-
loop management mechanism has been formed to ensure the efficient implementation and standardized progress of energy management, injecting sustained impetus into the green and high-quality development of
the enterprise.
能源与水资源利用治理架构Governance Structure for Usage of Energy and Water Resources
The Company has established a resource energy management mechanism where overall management and supervision are handled by the executive management, professional execution is carried out by the
Headquarters Equipment & Power Department, and implementation is undertaken at various levels by branch factories and production bases. This mechanism promotes orderly work through data monitoring, process
control, and regular evaluation.
Professional Execution Level Grassroots Execution Level
Scope Scope
Implement energy-saving tasks issued by the headquarters, and conduct daily
Coordinate overall Group energy management, resource allocation, cross-
management including equipment maintenance, operation optimization and data
departmental collaboration and performance appraisal; conduct energy audits,
reporting.
energy efficiency evaluation, energy-saving technology promotion, etc.
Energy Energy Tasks and objectives:
Tasks and objectives:
management management Implement the mechanism of "post-specific energy-saving accountability" and
responsibilities相关职责 Identify high energy-consuming links and propose optimization plans; responsibilities相关职责 integrate energy consumption indexes into team performance appraisal;
Formulate the annual energy utilization management action plan;
Promote the phase-out of outdated equipment and intelligent renovation;
Establish an energy data monitoring platform to realize digital and visual
Submit monthly energy usage data and realize real-time warning of abnormal
management of energy use across the Group.
energy consumption.
Scope
Scope Implement water-saving targets and tasks issued by the headquarters; carry out
Water Establish water resource management ledgers for the entire Group; promote the Water
resources resources equipment renovation and water utilization optimization measures; organize team-
management implementation of water-saving technical renovation projects; carry out water- management based water-saving training and routine inspections; report monthly water usage
responsibilities saving technology promotion and energy efficiency evaluation. responsibilities
data and abnormalities.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Water Resources Utilization
The Company strictly abides by the Water Law of the People's Republic of China and other
national and local water-related laws and regulations. It has formulated special policies,
During the reporting period
targets and implementation plans for water resources management. In addition, it actively
implements various water-saving measures, introduces and applies advanced water-
saving technologies and processes, optimizes the water consumption structure through
based on the data of 2024, the Company has Through the implementation
water recycling and other means, and continuously reduces water consumption intensity of water-saving projects, the
set a target of saving
and freshwater intake. actual water saving achieved
During the reporting period, the Company promoted the renovation of water pipelines at
the Chongqing Base. By addressing problems such as aging and corrosion of buried pipe 3% of water for 2025 3.19%
networks, pipeline leakage was effectively resolved. After the renovation, approximately
efficient use of water resources.
Water Resources Utilization
Intensity (10,000 Tons Water Resources
Total Water Intake
/RMB 1 Million Revenue) Recycling Rate(%)
(10,000 Tons)
Total Water
Consumption Recycled Water Volume
(10,000 Tons) (10,000 Tons)
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Energy Utilization
The Company complies with laws and regulations including the Energy Conservation Law of the People's
Republic of China, the Measures for the Energy Conservation Management of Key Energy-Using Units, the
GIEMS Intelligent Energy Management System
Guangdong Energy Conservation Regulations and has formulated a series of documents including the Gree
Electric Appliances’ Energy and Resource Conservation Management Measures, the NYGLSC-02 Energy GREE Electric Appliances promotes the information construction of energy management and
Management Manual, the QG1800.01-01 Energy Review Management Measures, and the Gree Electric has built the GIEMS Intelligent Energy Management System as the group-level hub for energy
Appliances' Air Conditioning Sector Energy Management Guide. From standardized system operation, management. The system integrates multi-dimensional information such as energy data and
technical renovation project control, equipment access review to performance incentive and restraint, the equipment status and fulfills two core functions: first, it conducts real-time dynamic monitoring of
Company has established a closely linked closed-loop energy management system. As of the end of the energy consumption data of key equipment across all production bases of the Group; second,
reporting period, the Company maintained its valid ISO 50001 Energy Management System certification. it covers the monitoring of consumption data of energy types including water, electricity and
Reporting Mechanism gas at all bases. Its capabilities include real-time data visualization, problem analysis, and rapid
decision-making, providing digital support for the efficient management and control of energy.
The Company implements a classified management and reporting mechanism for energy, realizing dynamic
tracking and transparent control over energy management through multi-dimensional reporting. The energy
performance special report is prepared on a monthly basis in the form of visual charts, covering energy
consumption per unit output value across the Group, the completion rate of energy-saving targets, the
progress of major energy-saving projects, analysis of return on investment, and benchmarking against industry
peers, thereby facilitating a comprehensive grasp of the overall energy performance. The monthly publicity of
energy management performance mainly presents the monthly energy consumption and evaluation results of
each production base, so as to strengthen energy efficiency benchmarking and accountability implementation
among different bases.
Digital System
The Company empowers energy management with digitalization, builds solid technical
barriers through forward-looking information-based planning, realizes data integration
and intelligent decision-making, and provides strong digital momentum for green and
low-carbon development with the advantages of efficient and transparent management.
In addition, the Company has established a hierarchical and coordinated energy
monitoring process to achieve full-chain dynamic management and control. Real-time
energy data including electricity, water, gas and others are automatically collected and
monitored online in real time with an update cycle of no more than one minute; abnormal
energy consumption warnings are also identified online in real time by the system to
detect risks in a timely manner; monthly energy performance reports and progress of
key energy-saving projects are generated monthly through a combination of system
and manual collaboration, ensuring that the monitoring is not only efficient through GIEMS Energy Management System of GREE Electric Appliances
automation but also accurate with manual verification.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
节能实践Energy-Saving Practices
The Company continuously taps into energy-saving potential, focuses The company focuses on advancing green technological upgrades across multiple business segments. It has implemented a number of
on technological iteration and system upgrading, and promotes energy process improvement projects in areas such as controllers, injection molding, and final assembly. Through technological innovation, the
efficiency optimization across all production links. Ultimately, it has company has achieved energy savings in electricity, liquefied gas, and other energy sources, actively putting into practice its commitment to
built an efficient and low-carbon green manufacturing model. energy conservation and consumption reduction.
空调机房能效升级Energy Efficiency Upgrade of Air Conditioning Room Development and Application of Intelligent Testing Technology for Chillers
In the construction project of the high-efficiency centralized Traditional chiller testing relies on manual testing under multiple operating
air conditioning room in Phase II of the Zhuhai Headquarters conditions, requiring over 7 hours per unit, presenting three major pain
Park, the Company adopted high-efficiency GREE CVE series points: long testing time, high energy consumption, and risk of missed
permanent magnet synchronous variable frequency centrifugal detection. In 2025, the Company independently developed “Intelligent
units and LHVE series permanent magnet synchronous variable Testing Technology for Chillers”, achieving industry innovation through three
frequency screw chillers to replace the original low-efficiency air- major breakthroughs: 1. First online intelligent fault detection system for
cooled screw compressor units and air-cooled modular units. The chillers: Based on a data-driven integrated intelligent software system, it
refrigeration room is located on the 4th floor of Phase II, serving integrates code writing, parameter writing/verification, and online intelligent
as the core cooling source for process cooling and environmental detection to achieve automatic quality and performance inspection for
cooling of the project. Equipped with a full variable frequency all components of the unit, completely eliminating missed detection. 2.
system, an intelligent group control system, frequency converters Revolutionary optimization of the testing process: The testing cycle per
and variable frequency control cabinets, the room effectively unit was drastically reduced from 7 hours to 1 hour, representing a 600%
solved the problems of the original air conditioning system, such improvement in testing efficiency. 3. Dual enhancement of green and low-
as excess cooling distribution, high unit energy consumption and Application of Intelligent Testing
carbon benefits: Average energy saving of 1,758 kWh per unit. During the
low comprehensive Energy Efficiency Ratio (EERs). The project Technology for Chillers
reporting period, this technology saved 210,960 kWh of electricity and
achieved an annual power saving of about 1.5 million kWh, reduced carbon emissions by 113 tonnes, becoming a benchmark “quality-
reducing carbon emissions by about 795 tons. energy-efficiency” tri-aspect green testing technology in the commercial air
conditioning sector.
During the reporting period
The Company has set targets for The Company carried out saving about The Company invested RMB
improving energy efficiency. In 2025,
the energy consumption per RMB
energy-saving million million in
projects
kWh of electricity energy-saving technical
renovations
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
清洁能源利用Usage of Clean Energy
During the reporting period, the Company
Used nuclear power of accounting for achieving an emission reduction of
total electricity consumption
Had a total photovoltaic accounting for achieving an emission reduction of
(PV) power generation of
total electricity consumption
During the reporting period, the Company increased its clean energy proportion
New PV power bringing the Group's total with PV power generation growing by
generation projects installed PV capacity to
Energy storage capacity bringing cumulative with a year-on-year
installed installed capacity to increase of
peak shaving in 2025
Reduction of LPG usage by a year-on-year decrease of
GREE Wuhu PV Project
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Exploration of Circular Economy
As a globally leading industrial manufacturing group, the Company
actively promotes waste recycling and reuse, reduces resource
waste, and explores circular economy development pathways. M
电子废弃物回收管理举措 easures for Electronic Waste Recycling Management
Relying on its strong after-sales service system, the Company has
set up electronic waste collection points at stores nationwide, and
established renewable resources bases in Zhuhai, Changsha and
other cities to undertake the collection and recycling of surrounding Scope of
Recycled Waste household appliances of all brands are eligible for recycling.
electronic waste and the resource utilization of plastics and other Products
materials. Meanwhile, the Company has improved the waste
home appliance recycling system, enhanced the convenience
of the trade-in program, and provided an integrated service of
"delivery, installation and recycling". It vigorously promotes green Consumer Consumers can make one-click appointments via web pages and submit relevant information to obtain
environmental protection and energy-saving and emission- Costs and
recycling quotes, followed by free on-site services provided by staff; the Company offers consumers
Incentives for
reduction technological transformation projects, facilitates resource Recycling deduction credits for product trade-ins.
recycling, and supports high-quality industrial development and the
achievement of the "carbon peaking and carbon neutrality" goals,
making contributions to the sustainable development of the industry.
The Company employed diversified recycling methods, including setting up collection points, mail-in
Recycling
recycling, on-site collection, trade-in recycling, "Internet Plus" recycling, and establishing regional central
Channels
公司承诺Company stations, thereby realizing full-channel recycling of electronic waste.
Commitment
The Company complies with existing international
environmental and waste transport conventions,
Recycling and
agreements, local laws, and other regulatory Recycling is carried out through its own facilities and third-party recycling suppliers. All collected electronic
Treatment
waste is transported to renewable resource dismantling factories for environmentally sound dismantling.
requirements. We actively respond to theBasel Facilities
Convention on the Control of Transboundary Movements
of Hazardous Wastes and Their Disposal, explicitly
prohibiting the direct or indirect export of electronic
waste through intermediaries from OECD countries or Management
of Third-Party The Company conducts annual reviews and verifications of third-party recycling suppliers to ensure
the EU to non-OECD or non-EU countries for disposal Recycling compliance with the Company's internal management requirements, with a supplier review rate of 100%.
and recycling. Suppliers
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
E
电子废弃物回收项目 lectronic Waste Recycling Programs Winning the Title of "2025 EPR Responsibility
Fulfillment Innovation Pioneer Enterprise"
GREE Electric Appliances actively implements the Extended
Expanded The Company launches trade-in activities, and has built a sound recycling network and a reverse logistics Producer Responsibility (EPR) system and has established
Recycling system featuring "integrated delivery of new products and collection of old ones", which realizes full industrial
a closed-loop system covering "R&D – Production – Sales –
through Trade- chain coverage of Gree's home appliance business from front-end production to back-end waste home
in Channels Recycling – Regeneration", for which it was awarded the title
appliance recycling.
of "2025 EPR Responsibility Fulfillment Innovation Pioneer
Enterprise". The Company has built a traceable reverse logistics
Reverse
Logistics
recycling network covering the whole country, and joined hands
Recycling The Company collaborates with 30,000 sales outlets and 20,000 after-sales service points, targeting end with platforms such as JD.com and Tmall to create a diversified
Model for Waste consumers, to carry out the recycling of all categories of used household appliances.
Household
recycling ecosystem. In 2025, the volume of waste household
Appliances appliances recycled was 8.55 million units/sets, covering air
conditioners, televisions, refrigerators, washing machines,
computers and other products. The large-scale practices heavily
Online The Company has launched "Mingzhu Green Loop Recycling", a professional recycling platform for waste promoted green and circular consumption.
"Internet Plus household appliances. By linking with Gree's offline after-sales outlets, it has formed a recycling and treatment
Recycling" network covering 95% of provinces, cities and towns nationwide, attracting more than 200,000 registered users
Channel The recycled waste household appliances, after sorting, are
and securing over 500,000 total orders.
regenerated through a green treatment system with an annual
dismantling capacity of over 10 million units. The Company has
established a reverse logistics system for "integrated delivery of
Urban Waste
Recycling The Company has joined forces with environmental sanitation enterprises to establish a "2+1" efficient recycling new products and collection of old ones" and provides one-stop
through and utilization model for urban household waste, that is, to build a "closed-loop system for resource recycling" by services of "delivery, installation and recycling" for household
Integrated Two relying on one "Internet Big Data Intelligent Cloud Platform" and one "Ecological Resource Utilization Center".
Networks appliances. Through the Mingzhu Green Loop information platform
and the "one code per unit" traceability system, the Company
has realized digital management of the whole recycling process,
improved efficiency, reduced costs and ensured transparency and
Recycled and Converted Copper, Iron, Aluminum, and traceability of the process.
Recycled and Processed Waste Electrical and Electronic Products Plastic Materials
Unit: 10,000 Units/Sets Unit: 10,000 Tons
Innovation Pioneer Enterprise
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
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Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Key Performance Table
Economic Performance Social Performance
Indicator Unit 2025 创新驱动Innovation-driven
Total operating revenue RMB 100 Million 1,711.18
Indicator Unit 2025
Net profit attributable to the parent company RMB 100 Million 290.03 R&D Investment RMB 100 Million 64.44
Total cash dividends (tax included) RMB 100 Million 167.55 Proportion of R&D investment to operating revenue % 3.78
Cash dividend per 10 shares (tax included) RMB 30 Number of R&D personnel Person(s) 15,947
Percentage of R&D personnel % 22.16
Governance Performance Cumulative patent applications Item(s) 138,935
董事会Board of Directors Cumulative invention patent applications Item(s) 76,928
Cumulative patents granted Item(s) 87,079
Indicator Unit 2025
Cumulative invention patents granted Item(s) 32,317
Total number of Board members Person(s) 10
Patent applications during the reporting period Item(s) 9,411
Including: Number of female directors Person(s) 1
Invention patent applications during the
Including: Number of executive directors Person(s) 1 Item(s) 6,084
reporting period
Including: independent directors Person(s) 4 Patents granted during the reporting period Item(s) 9,181
Number of board meetings convened Time(s) 6 Invention patents granted during the
Item(s) 6,434
Attendance rate of board members % 100 reporting period
Cumulative software copyrights held Item(s) 100
商业道德Business Ethics
Safety and Quality of Products and Services
Indicator Unit 2025
Anti-commercial bribery and Indicator Unit 2025
Time(s) 33
anti-corruption training
Number of products recalled Case(s) 0
Number of employees who have signed the
Person(s) 10,364 Product recall rate % 0
integrity commitment letter
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Employee Turnover Rate
Indicator Unit 2025 Indicator Unit 2025
Amount involved in significant safety and quality Total employee turnover rate % 11.27
responsibility accidents related to annual products RMB 10,000 0
and services Employee Male % 11.66
turnover rate by
Complaint resolution rate % 100 gender Female % 10.33
Customer satisfaction % 99.97 Under 30 years old % 20.59
Employee
turnover rate by 30 to 40 years old % 7.92
age group
Over 40 years old % 4.44
员工构成Employee Composition
Indicator Unit 2025
Total number of employees Person(s) 71,966
Number of Male Person(s) 51,122 E
员工培训与发展 mployee Training and Development
employees by
gender Female Person(s) 20,844
Indicator Unit 2025
Number of Labor contract system Person(s) 71,966 Total training hours Hour(s) 1,195,002
employees
Labor dispatch system Person(s) 0 Average training hours per employee Hour(s) 57.41
by type of
employment Others Person(s) 0
Under 30 years old Person(s) 22,380
Number of
employees by 30 to 40 years old Person(s) 31,564
age O
职业健康与安全 ccupational Health and Safety
Over 40 years old Person(s) 18,022
Senior Management Person(s) 285 Indicator Unit 2025
Number of female senior Total duration of occupational health and work
Person(s) 38 Hour(s) 135,667
management employees safety training
Number of
employees by Middle Management Person(s) 5,155 Times of safety drills conducted (fire, toxic gas
Time(s) 381
position level leaks, etc.)
Number of female middle
Person(s) 1,152
management employees Number of work-related fatalities Person(s) 0
Frontline Person(s) 66,526 Incidence of occupational diseases % 0
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Environmental Performance
Greenhouse Gas Emissions Waste Disposal
Indicator Unit 2023 2024 2025 Indicator Unit 2025
Total greenhouse gas emissions tCO2e 1,314,438 3,173,251 2,200,430 Total general solid waste Ton(s) 499,126.63
Scope 1 Greenhouse gas emissions tCO2e 726,654 2,682,418 1,759,657 Total hazardous waste Ton(s) 15,897.59
Scope 2 Greenhouse gas emissions tCO2e 587,784 490,833 440,773 Recycled and converted copper, iron, aluminum,
and plastic materials
tCO2e/RMB
Greenhouse gas emissions intensity 0.0641 0.1670 0.1291 Recycled and processed waste electrical and
electronic products
Wastewater Discharge
Usage of Water Resources
Indicator Unit 2025
Indicator Unit 2025
Total industrial wastewater discharge m3 3,089,689.17
Total water withdrawal 10,000 Tons 1,020
Chemical oxygen demand (COD) mg/L 68.32
Recycled water volume 10,000 Tons 71,274
Five-day biochemical oxygen demand (BOD5) mg/L 23.87
Total water consumption 10,000 Tons 689.5
Suspended solids mg/L 19.44
Ammonia nitrogen mg/L 7.78 Usage of Energy
Total phosphorus mg/L 1.16 Indicator Unit 2025
Total energy consumption Ton(s) of standard coal 247,401.18
Waste Gas Emissions Direct energy consumption Ton(s) of standard coal 49,144.36
Indicator Unit 2025 Including: Natural gas 10,000m 2,895.65
Total exhaust emissions m 34,232,869,350 Including: Liquefied petroleum gas (LPG) Ton(s) 6,203.16
Particulate matter (PM) emissions mg/m? 8.67 Indirect energy consumption Ton(s) of standard coal 198,256.82
Non-methane hydrocarbon emissions mg/m? 3.26 Including: Electricity 10,000 kWh 149,820.56
Nitrogen oxides (NOx) emissions mg/m? 11.21 Including: Self-generated solar power usage 10,000 kWh 11,495
Sulfur oxides (SOx) emissions mg/m? 1.41 Nuclear power usage 10,000 kWh 67,678.6
Volatile organic compounds (VOCs) emissions mg/m? 3.40 Proportion of clean energy consumption % 54.8
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Benchmark Index Table
Cross-Reference to Self-Regulatory Guidelines No. 17 for Companies Listed on
Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation)
Disclosure Requirements Corresponding Section Disclosure Requirements Corresponding Section
Climate Change Tackling Climate Change Tackling Pursuing Excellence Through
Meticulous Quality
Pollutant and Waste Discharge Safety and Quality of Products
Pollutant Discharge Craftsmanship-oriented
Management and Services
Service Enhancing
Pollutant and Waste Discharge Reputation
Waste Disposal
Management Data Security and Customer Rigorous Data Protection for
Environmental
Topics Environmental Compliance Social Topics Privacy Protection Enhanced Security
Environmental Compliance Management
Management Employee Employment and
Energy Usage Resource and Energy Usage Rights and Benefits
Talent Development
Employees
Usage of Water Resources Resource and Energy Usage and Training
Occupational Health
Circular Economy Circular Economy Exploration and Safety
Fulfilling Our Mission to Due Diligence ESG Management
Rural Revitalization
Support Society
Sustainability- Communication with Stakeholders ESG Management
Fulfilling Our Mission to related
Contributions to the Society
Support Society Governance Anti-Commercial Bribery and Anti-
Business Ethics
Topics Corruption
Strengthening Innovation
Social Topics Innovation-driven
through Intensive R&D Anti-unfair Competition Business Ethics
Strengthening Control over
Supply Chain Security
Chain Partners
Equal Treatment to Small and Medium- Strengthening Control over
Sized Enterprises Chain Partners
Note: It has been determined that the topics of Ecosystem and Biodiversity Protection and Ethics of Science and
Technology are currently not material or applicable and are therefore not disclosed in this report.
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
Cross-Reference to GRI Standards
GRI Standard Corresponding Section GRI Standard Corresponding Section
About this Report GRI 308: Supplier Environmental
Strengthening Control over Chain Partners
About Gree Electric Appliances Assessment 2016
ESG Management
GRI 2: General Disclosures 2021 Employee Employment and Rights and Benefits
Corporate Governance GRI 401: Employment 2016
Employee Employment and Rights and Benefits Key Performance Table
Key Performance Table Occupational Health and Safety
GRI 403: Occupational Health and Safety 2018
GRI 3: Material Topics 2021 ESG Management Key Performance Table
Employee Employment and Rights and Benefits Talent Training and Development
GRI 404: Training and Education 2016
GRI 201: Economic Performance 2016 Climate Change Tackling Key Performance Table
Key Performance Table Corporate Governance
GRI 405: Diversity and Equal Opportunity 2016
GRI 205: Anti-corruption 2016 Business Ethics Employee Employment and Rights and Benefits
Resource and Energy Usage GRI 406: Non-discrimination 2016 Employee Employment and Rights and Benefits
GRI 302: Energy 2016
Key Performance Table GRI 407: Freedom of Association and Collective
Employee Employment and Rights and Benefits
Pollutant and Waste Discharge Management Bargaining 2016
GRI 303: Water and Effluents 2018
Resource and Energy Usage GRI 408: Child Labor 2016 Employee Employment and Rights and Benefits
Climate Change Tackling GRI 409: Forced or Compulsory Labor 2016 Employee Employment and Rights and Benefits
GRI 305: Emissions 2016 Resource and Energy Usage
Key Performance Table GRI 414: Supplier Social Assessment 2016 Strengthening Control over Chain Partners
Pollutant and Waste Discharge Management GRI 417: Marketing and Labeling 2016 Business Ethics
GRI 306: Waste 2020 Circular Economy Exploration
Key Performance Table GRI 418: Customer Privacy 2016 Rigorous Data Protection for Enhanced Security
Green Intelligent Manufacturing:
Compliant Governance: Refining R&D and Improving Collaborative Empowerment:
About This Message from the About Gree ESG Pursuing Low-Carbon Emission
Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Appendix
Report Management Electric Appliances Management Reduction, Fulfilling Ecological
Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success
Responsibilities
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