25

Sichuan Changhong Newenergy Technology Co., Ltd.

CONTENTS

Message from Leadership 05
About Changhong Newenergy 06
2025 Highlights 09
ESG Governance 10

Focus on Core Business:

Driving Value through Innovation and Quality

Scientific and Technological Innovation: 18 Leading the Future with Intelligence

Craftsmanship Manufacturing: Excellence in Safety

25

Industrial Collaboration: Connected Supply Chains for Shared Success

Green Transition:

Safeguarding the Ecosystem Through Low-Carbon Developmentand Circularity

Green Management,with Systems Taking the 40 Lead

Green Production and Low-Carbon 42 Development

Green Operations:AdvancingToward a Greener 56 Future

16

Responsibility Section:

Sound Governance Empowers Operations, Refined Management Improves Qualityand Efficiency

Outlook for 2026 84

Appendix 86

Key Performance Indicators 86

Index of Indicators 90

Feedback 91

People-Oriented Approach:

Creating a Better Future Through Care and Responsibility

Strengthening the Foundation Through Governance:

Safeguarding Long-Term Development with Integrity and Compliance

Employee Care, Empowering Development 60

Reinforcing Safety Fundamentals and Building a Strong Defense Line

Public Welfare and Charity, Enhancing People's Well-Being

Party BuildingLeadership,Strengthening the 76 Foundation and Forging the Soul

Improving Governance and Pursuing 80 Excellence

Law-Based Compliance, Ensuring Steady and 83 Sustainable Corporate Development

Notes on Preparation

This report is the first Environmental, Social and Governance (ESG) Report published by Changhong Newenergy.

Reporting Period

This report is an annual report.

Statement of Assurance

This report has been reviewed and approved by the Company's management. The directors, senior management of the Company warrant that the content of this report contains no false records, misleading statements, or material omissions, and assume several and joint liability for the truthfulness, accuracy, and completeness of its content.

Guidelines for State-owned Enterprises to Better Fulfill Social Responsibilities of SASAC of the State Council Corporate Sustainability Disclosure Standards — Basic Standard (Trial) issued by the Ministry of Finance
Application Guidance for the Corporate Sustainability Disclosure Standards — Basic Standard (Trial) issued by the Ministry of Finance
China Enterprise Sustainability Disclosure Guidelines (CASSESG 6.0): General Framework
China Enterprise Sustainability Disclosure Guidelines (CASSESG 6.0): Electrical Machinery and Equipment Manufacturing Industry
United Nations Sustainable Development Goals (SDGs)
Sustainability Report Guidelines (GRI Standards) of Global Reporting Initiative

Reporting Scope

Unless otherwise specified, the scope of this report is consistent with that of Changhong Newenergy's 2025 annual financial report.

The reporting period covers January 1, 2025 to December 31, 2025, with certain content extending beyond this period.

The organizational scope covers Changhong Newenergy's headquarters and its subsidiaries.

Data Statement

The data and information contained in this report are mainly derived from Changhong Newenergy's statistical data and relevant documents. Unless otherwise specified, all monetary amounts mentioned in this report are denominated in Renminbi (RMB).

Reference Standards

Guideline No. 11 for the Ongoing Supervision of Listed Companies on the Beijing Stock Exchange — Sustainability Reports (Trial).

Guidelines for the Preparation of Sustainability Reports by Listed Companies on the Beijing Stock Exchange (Revised in January 2026): "No. 1 General Requirements and Disclosure Framework", "No. 2 Climate Change Response", "No. 3 Pollutant Emissions", "No. 4 Energy Utilization", and "No. 5 Water Resources Utilization"

Guiding Opinions of the State-owned Assets Supervision and Administration Commission of the State Council on Highstandard Fulfillment of Social Responsibilities by Central Enterprises in the New Era

Access to this Report

This report is published in electronic form and is available on the Company's website (http://www.changhongnewenergy.com/) and the website of the Beijing Stock Exchange (https://www.bse. cn/index.html)

K

Message from Leadership

2025marks both thefinal yearof the14th Five-Year Planand the opening year forthe15thFive-Year Plan.Itis alsoa pivotalyearcharacterized byaccelerated transformationand profoundchange inthe globalenergylandscape.Changhong Newenergy remains committedto its corporate misionof "precision manufacturing,technologicalinovation,and benefiting humanity".WehaveembeddedESGprinciples intothecoreofourstrategyandintegrated themintoallaspects ofouroperations.Focusing onfourkeydimensions-corebusinessdevelopment,greenand low-carbontransition,peoplecentered value creation,and strengthened governance-we have sustained long-term efforts to elevate ESG froma compliance baseline to a source of core value,injecting enduring momentum into high-quality growth.

71

Over the past year, we have strengthened our core business, upheld craftsmanship,advanced innovation,and setnew benchmarks for quality. Guided by the principle of "survival through quality,market leadership through innovation,and growth through openness", Changhong Newenergy has driven value creation through both innovation and quality.We have reinforced our innovation-driven strategy,with R&D focused on frontier technologies,while accelerating intelligent upgradingand digital transformation. Our Thailand production base was successfully commissioned,and our global footprint continued to expand steadily.We have also strengthened quality and delivery excellence by improving our delivery assurance systems,achieving efficient coordination and high-quality delivery,and embedding a customer-centric philosophy throughout the entire service lifecycle. Inaddition,we have deepened ecosystem collaboration and win-win partnerships by enhancing the industrial chain ecosystem and working closelywith partners to drive development, expand markets,and share value.In 2025,we demonstrated leadership as a pioneer in industrial development,a practitioner of deep integration,and a steadfast champion of quality excellence.

Over the past year, we have advanced green development with a focus on long-term sustainability,buildinga low-carbon ecosystem and reinforcing our commitment to environmental stewardship.

Guided by the principle that "lucid waters and lush mountains are invaluable assets",Changhong Newenergy protects the environment through low-carbon development and circular economy practices. We have upheld strict environmental standards by improving closedloop management systems, strictly complying with environmental requirements,and reinforcing ecological safeguards.We have focused on reducing carbon emissions and resource consumption, taken the lead in developing industry carbon footprint standards,and promoted cleaner,lower-carbon,and more efficient production systems.We have also advanced circular economy practices by strengthening lifecycle management of batteries and optimizing the green value chain spanning "resources-production-recycling-reuse".At the same time, we have fostered a culture of sustainability by promoting environmental awareness and advocating low-carbon workplace practices, making sustainability a shared commitment across the organization.In 2025, we demonstrated leadershipas an active contributor to China's dual carbon goals,an effective responder to international regulatory developments, and a leader in green transformation.

Over the past year, we have embraced a people-centered approach, fostered a culture of care, and empowered employee development. With a strong sense of responsibility toward national priorities, Changhong Newenergy strives to create shared value through care and accountability.We have advanced talent development by improving incentive mechanisms,establishing tiered talent development systems, and enhancing organizational vitality and innovation.We have upheld the highest standards of workplace safety by reinforcing accountability, ensuring comprehensive occupational health protection,and conducting regular emergency drills to safeguard employee health and well-being. We have also fulfilled our social responsibilities by actively engaging in community development and philanthropic initiatives,contributing to public well-being and responding to societal needs as a responsible state-owned enterprise.In 2025,we demonstrated leadershipas a facilitator of talent development,a guardian of occupational health,and a contributor to social well-being.

Over the past year, we have strengthened governance foundations, advanced lean management, and reinforced the sustainability of our long-term development. Changhong Newenergy continues to modernize its governance systems and capabilities, ensuring sustainable development through integrity and compliance.We have upheld the leadership of Party building in guiding business operations,enhancing both effectiveness and efficiency.We have continued to improve our corporate governance framework,strengthened investor relations engagement,enhanced the standardization and transparency of information disclosure,and fostered stronger market communication and stakeholder trust.We have adhered to lawful and compliant operations,proactively responded to market demands,and built trust through transparent governance.In 2025,we demonstrated leadership as a continuous improver in corporate governance,a practitioner of compliant operations,andadriverof enterprise development.

With determination and resolve, we press forward to lead the way.

At this new stage of development, Changhong Newenergy will continue to advance ESG practices with greater depth and effectiveness.Guided bya long-term perspective and a strong sense of responsibility, we will deepen our presence in the new energy sector, strengthen our core capabilities in green and inteligent manufacturing through pragmatic measures,and promote coordinated development across the industrial value chain.We will continue to pursue breakthroughs in technological innovation,lead in green and low-carbon development, foster a caring and people-centered culture,and enhance governance quality and efficiency.Indoing so,weaim to contribute to the global energy transition,support the achievement of carbon peakingand carbon neutrality goals,and help build a more sustainable and beautiful China.

Chairman of Changhong Newenergy

About Changhong Newenergy

Company Profile

SichuanChanghongNewenergyTechnologyCo.,Ltd.(hereinafterreferedtoas"ChanghongNewenergy")wasestablishedinOctober 2006andwaslistedontheBejingStock ExchangeonNovember15,2021(A-sharestockcode:920239;thestockcodewaschanged from"836239"to"920239"withefectfromOctober9,2025).TheCompanyisasubsidiaryofSichuanChanghongElectronicHolding GroupCo.,Ltd.,withitsheadquarterslocatedinMianyang,SchuanProvince.Ithasthreecontrolledsubsidiaries:ZhejangChanghong CamelionElectricAppliancendustryCo.,Ltd.,ChanghongSanjieNewEnergyCo.,Ltd.,andShenzhenChanghongJuheyuanTechology Co.,Ltd.ChanghongNewenergyhasreceivedhonors,including"High-techEnterprise","SichuanProvinceScienceandTechnology ProgressAward","Top100EnterprisesinChina's Bateryndustry","SichuanProvinceTechnologicalInnovationDemonstration Enterprise","TopTenEnvironmentalProtectionEnterprisesoftheFourthSessionin Mianyang",and"MianyangLaborMedal".

Company Culture

Business Portfolio

Changhong Newenergyisanationalhigh-techenterpriseintegratingtheR&D,manufacturingandsalesofafullrangeofalkaline batteries,cylindricalhigratelithiumbatteriesandpolymerlitum-ionbatteries.Itisaprovideroftechnicalsolutionsandproducts forthedesigndevelopmentpoductioandalesofalinemanganesebaterisanditumbateriesnational-leveed, sophisticated,distinctiveandinovative"Litleiant"enterprise,andthelargestproductionbaseforigatecylindricalitum batteries in western China.

2025 Highlights

Changhong Newenergy

>>>>

Changhong Newenergy was selected for the Ministry of Industry and Information Technology's 2025 List of 5G Factories
Changhong Newenergy's "Innovative Application of a Flexible Production Execution Management Platform for Discrete Manufacturing" was recognized as a "2024 Typical Case of Real-Digital Economy Integration" by the Ministry of Industry and Information Technology Changhong Newenergy was awarded the title of "2024 Green Factory" by Ministry of Industry and Information Technology
Changhong Newenergy was awarded the title of "2025 Advanced Smart Factory of Sichuan Province"
Changhong Newenergy was awarded the title of Benchmark Enterprise for "intelligent transformation and digitalization" in Mianyang's manufacturing industry for 2024
Changhong Newenergy received the "ESG Value Pioneer" award among the Top Ten Pioneer Cases at the 8th Photovoltaic and Energy Storage Industry Investment and Financing Forum

Changhong Camelion

>>>>

Changhong Camelion was awarded the title of "Zhejiang Green Factory"
Changhong Camelion was awarded the title of "Zhejiang Industrial Internet Platform"
Changhong Camelion passed the review and retained the title of "Zhejiang Province Specialized, Sophisticated, Distinctive and Innovative SME"

Changhong Sanjie

v>>>

Changhong Sanjie was awarded the title of "Jiangsu Province Advanced Smart Factory"

ESG Governance

ESG Governance Structure

ChanghongNewenergyhasformulatedtheRulesofProcedureoftheBoardESGManagementCommitee,deployedsustainabilitywork atdifferentlevels,carifiedworkbjectivesateachstagendestablishedathretierESGgovernancestructureof"decisionmakig management-execution"withclearpowersandresponsibilitiesandeffcientoperations,terebypromotingthefullitegrationofESG work into all aspects of corporate development.

Decision-making Level

Management

Execution Level

The Board of Directors serves as the decision-making body for the Company's ESG management work and is primarily responsible for reviewingand approving the Company's ESG strategy and key work arrangements,aswellas reviewingmajor ESG-related matters.

●The Board of Directors hasestablished the ESG Management Committee,which is responsible for studyingand formulating the Company's ESG strategic plans and objectives,establishing the ESG management system,assessing and reviewing the Company's ESG-related strategies,risks and implementation,and reviewing the Company'sannual ESG Report.

●An ESG Leading Management Group has beenestablished,headed by the Chairman of the Company,with all members of Senior Management and heads of departments servingas members.It is responsible for overseeing ESG operations,establishing the Company's ESG management system, reviewing ESG-related policies and work plans,and establishing and improving the assessment and incentive mechanisms for ESG management work.

●Board of Directors Office serves as the Lead Department for the Company's responsible for taking the lead,providing overall coordination,and advancing implementation in a coordinated manner.

·All specialized departments and controlled subsidiaries serve as the specific implementing entities for ESG governance, integrating the fulfillment of environmental, social and corporate governance responsibilities into the Company's development strategy and all stages of the full production and operation process.

CASE

Changhong Newenergy reviewed and approved the Rules of Procedure of the Board ESG Management Committee, strengthening the institutional foundation for ESG governance

OnSeptember4,2025,ChanghongNewenergyconvenedthe43rdmeetingofthethirdsesionoftheBoardofDirectorsandreviewed andapprovedtheProposalonFormulatingtheRulesofProcedureoftheBoardESGManagementCommitee.Attheinstitutionallevel, thisclarifiedtheboundariesofpowersandresponsibilities,operatingproceduresndmanagementrequirementsforESGgoverance, therebyproviding solid institutionalsupportfortheCompany'ssustainabilityefforts.The maincontentsareasfollows:

Clarifying the organizational structure and personnel requirements

TheBoardofDirectorshasestablishedtheESGManagement Commiteewhose termofofficeisaligned withthatoftheBoardof Directors.Asadedicated managementbodyforESGwork,theCommiteehasanESGWorkingGroupunderitoberesponsiblefordayto-dayexecution.TheCommiteeshallcomprisenofewerthanthreemembers,allofhomshallbeicumbentdirectors,includingat leastoneindependentdirector,withtheChairmanoftheBoardservingasthechairoftheCommitt.Commitee membersshallbe capableofidentifyingESG-relatedrisksandopportunitiesthatmayhaveamaterialimpactontheCompany'sdevelopment,providing guidanceforenhancingtheCompany'sESGmanagement,andoverseeingtheadvancementandimplementationoftheCompany'sESG work.Membersofthe Working Group shallbe asigned as neededandare not limited to members ofthe Commitee.

Defining the boundariesofcore powersand responsibilities

TheCommiteeis mainlyresponsiblefortop-leveldesign,supervisionandreview.Itsdutiesincludestudyingandformulatingthe Company'sESGstrategicplansandobjectives,establishingthemanagementsystem,asesingandreviewingtheCompany'sSGrelated strategies,risksandimplementation,andreviewingtheCompany'sannualESGReport.The Working Groupfocuseson implementationandexecutionundertakingsuchworkasraftingpolicies,ross-departmentalcordinationidentifyingEGrisks andopportunities,preparinganddisclosingtheESGReport,andtrackingindustryregulationsanddevelopmenttrends.TheCompany provides theCommittewithsuffcientresources,andrelevantdepartmentsoferfullsupport.AllproposalsoftheCommitteare submitted to the Board of Directors for review.

Standardizing decision-making and meeting management

Adecision-makingprocessofWorkingGroupproposal-Commiteereview-Boardapproval-WorkingGroupimplementation"habeen established.TheCommiteeshallconveneatleastonemetingeachyear.ExtraordinarymeetingsmaybeproposedbytheChaianof theBoard,thoveerthneralagerhers.Ametigeirestendaneofrethantwoidofallitee members,andresolutionsshallbeadoptedbyamajorityvoteofallCommiteemembers.Minutesofmeetingsshallberetainedbythe BoardSecretaryfortenyears,andallparticipantsshallesubjecttoonfidentialityobligatiosinespectoftematersdisued.

ESG Institutional System

ChanghongNewenergyhasestablishedandimproveditsESG-relatedinstitutionalsystem.ByformulatingtheRulesofProcedurefthe BoardESGManagementCommitee,ithasfurtherclarifiedthetop-leveldesign,rganizationaldevelopment,dutiesandauthorities, andworkflowofESGwork.At thesametime,focusingonkeyESGmaterialopicssuchasecologicalandenvironmentalprotection, greenandlow-carbondevelopment,safetyandqualityandsientificandtechnologicalinovation,theCompanyhasforulated specialpoliciesandmeasurestoprovidestrong institutionalsupportforitsafliatedenterprisesinadvancingESGmanagementina standardized manner and implementing sustainability requirements.

ESG capacity building

TakingthepromotionofESGconceptsandcapabilityenhancementaskeypriorities,Changhong Newenergyhassteadilyimproved itsprofessioalESGmanagementcapabilies.ItregularlyinvitesexteralexpertsndprofesionallecturerstoprovideES-specific trainingtoBoardmembersandmanagementpersonnelatandabovethemiddle-managementlevel,whilealsoorganizingrelevant personeltopartipateinexternalESGtrainingprograms.Inthisway,theCompanycontinuestostrengthenESGcapabilitiesacross the workforceand build a solid capability foundation forimproving the overallstandard of its ESG work.

In2025,theCompanyconductedESG-focusedtrainingfortheBoardofDirectors,effectivelyenhancingBoardmembers'ESGawarees andmanagementmindset,andfurtherpromotingtheBoard'sin-depthparticipationintheCompany'sESG-relateddecision-making and deployment.

ESG Due Diligence

Toensurethehigh-qualitypreparationoftheESGReport,Changhong Newenergyorganizedmultipledepartments,including the Development ManagementDivision,GeneralHuman Resources Department,Safetyand Environmental Protection Department, ProcurementDepartment,ProductionManagementDivision,TechnologyCenter,QualitySupervisionandManagementDivision,Labor Union,andComplianceadRiskPreventionandontrolDepartment,tojointlyconductESGduediligence.Asystematicinteralreview andcomprehensiveassessmentwerecarriedoutontheESGperformance,risksandcompliancestatusoftheCompanyandits key relatedparties.Noprioritynon-conformitiesereidentifiedinthisduedligenceexercise,andtheCompany'selevantperformanceis aligned with customers' requirements for supplier social responsibility and ESG management.

MaterialityAnalysis

InactiveresponsetotherequirementsoftheGuidelineson SustainabilityReportsforListed Companies isuedbytheShanghai ShenzhenandBeijingstockexchangesregardingtheidentificationandanalysisofdoublematerialitytopics,andwitheferenceto the methodsand proceduresfortopic materialityanalysisundersustainabiltydisclosure standardssuchas the ChinaEnterprise SustainabilityDiscosureGuidelines(CASS-ESG6.0),ChangongewenegyconductedpreliinaryidentificationandcreeingfEG topics inlightofitscorporatestrategyandindustrycharacteristics.TheCompanythencarriedoutanassssmentandanalysisf this year'smaterialtopicsfromthetwodimensionsofinancialmaterialityandimpactmateriaityandprovidedfocusedresponsstothem in this report.

Topic Assessment Process

Understandingand assessing the company background

Review ESG disclosure rules and industry standards to clarify the core logic of double materiality assessment.
Develop a full understanding of the Company's sustainability background by analyzing macro policies and regulatory requirements,and identify the strengths and weaknesses of the Company's ESG management and practices.
·Analyze and identifyaffected stakeholders.

Preliminary screening of topics

Analyze macro trends,industry developments and regulatory requirements to determine the direction of topic relevance. ●Combine benchmarking against standards,peer benchmarking and policy analysis to preliminarily identify key sustainability topics and establish the 2025 topic pool.

Assessmentof topic materiality

·Assess financial materiality: determine the extent to which a topic affects the Company's business operations,financial condition and development strategy

·Assess impact materiality: determine the scope and scale of the actual or potential impact of a topic on the economy,society and the environment.

Dynamicadjustment andconfirmation of topics

Incorporate business materials accumulated during the preparation of the report to deepen understanding of the Company's operations and dynamically adjust the conclusions of the double materiality assessment.

Optimize the topic materiality matrix based on the adjustment results.

Changhong Newenergy 2025 ESG Materiality Matrix

●Pollutant emission and work safety ● Waste disposal ● Data security and ●Environmental customer privacy ●Combat with climate change compliance protection ●Energy utilization management ● Stakeholder ● Utilization of water resources ●Supply chain security communication ●Circular economy ●Employee ●Anti-bribery and anticorruption ● Occupational health ● Ecosystem and ● Rural revitalization and Biodiversity Protection social contribution ●Green Operations ● Due diligence ●Product and service safety ●Industry Development ●Anti-unfair competition and quality ● Equal treatment for ●Technology Ethics ● Innovation driving small and medium enterprises Material Financial Materiality Highly Material

Communication with stakeholders

ChanghogNewenergyataches greatimportancetocommunicationandexchangeswithinternalandexternalstakeholders.Centering ontheconcernsanddevelopmentneedsofvariousparties,theCompanyhaskeptcommunicationchannelsopenand,throughan open,transparent,pragmaticandeficientcommunicationmechanism,activelylistenedtostakeholderneedsandrespondedpositively toexpectations.Itworkshandinhandwithstakeholdersforcoordinateddevelopmentandjointlybuildsasustainabledevelopment ecosystem featuring win-win outcomes for the economy,society and the environment.

店

Responsibility Section

Sound Governance Empowers Operations, Refined Management Improves Quality and Efficiency

performance as dual priorities.Byleveraging sound governance to empower operations and refined managementto strengthen thefoundation,theCompanydeepens valuecreationacross theentirevaluechainandeffectivelyenhancesitsoperationaland persistent resilience, it continues to forge ahead with determination

Sound Governance Empowerment: Modernized Governance Activates Organizational Vitality

Management focuses on doing things right, aiming to improve efficiency. Following the development philosophy of "strengthening, expanding, and innovating",Changhong Newenergy has established a strategic system characterized by business specialization and integrated management. It has also developed incentive mechanisms aligned with human motivation, strengthened talent development,and continuously deepened management innovation and reform of operational systems and mechanisms, thereby fully unleashing endogenous organizational momentum and growth vitality.

management practices with Changhong Al-Link Technology Co., Ltd.

Upgrade of Strategic System

Three-prongeddriving strategy:Establishing thestrategicdirectionof "strengtheningalkalinebatterybusines,expanding lithium battery business,and developing new specialty batteries"

Integrated management:Buildinga governance structurewiththeheadquartersasthemanagement hubanddecision-making center,coordinatingtheformulationofdevelopmentstrategies,alocationofresources,andintegrationofsupplychainandmarket resources

Businessspecialization:Tailoring mechanisms and development plans forsubsidiaries;revising core institutional systems such as credit management,compliance,contract management,and supply chain management; standardizing R&D and manufacturing processes; and strengthening quality control

Innovation in Incentive Mechanisms

Equity incentive: As one of the pilot enterprises for employe stock ownership plans,the Company leverages policy support to implement equity incentives and stimulate employees'intrinsic motivation

Performance alignment: Promoting the "passion-driven management ^ + KPl-based performance contract" model, integrating individual goals with organizational objectives for employees,and improving incentive and constraint mechanisms through KPl-based performance contracts

System restructuring: Fully restructuring the marketing system,shiftingfrom individual-based operations to team-based collboration,linkingsalescommissions withoperationalindicatorssuchascashcolectionandaccounts receivable,and reinforcinga performance-oriented culture

Strengthening the Talent Pipeline

Attracting top talent: Building a high-level R&D talent team comprising professor-level senior engineers and senior engineersas the leadingcore

Pipeline development: Strengtheningtalent pipeline developmentand managementteam building through mechanisms such as master-apprentice mentoring,A/B role backup arrangements,and the assistant-to-manager scheme

Targeted talent cultivation: Implementing diferentiated training approaches to enhance workforce competency

Refined Management for Quality Improvement: Enhancing Management Precision to Consolidate Development Foundations

Operatios emphasizedoingtherightthings,aimingtomaximizeeficiencyandefectivenes.Anchoredonthegoalsofultimate efficiencyandminimalcost",Changhong Newenergyhasadvancedfoundationalstrengtheninginitiativesindepth.Byembedding refinedmanagementconcepts throughouttheentireproductionandoperationvaluechain,leveragingleanmanagementtounlock internalpotentialandempoweringeficiencythroughdigitalandintellgenttansformation,theCompanyhasmademaagement refinement a core capability to navigate industry cycles and enhance market competitiveness.

In 2025, refined management delivered the following results:

Battery performance uniformity on production lines improved by 6 %

●Production efficiency increased by 10 %

Process scrap rate reduced by 3 0 % 5 0 % ● Coverage rate of key quality control reached 100 %

Lean Management Penetrating to Team Management to Build Digital and Intelligent Management for the Grassroots Synergy Quality and Efficiency Improvement o
Mechanism improvement: Unified alignment: Upholding Intelligent transformation and
Establishing a company-wide digitalization: Actively promoting and unified actions",and regularly intelligent transformation
from forming cost reduction and organizing operational analysis
efficiency enhancement teams and meetings and strategic seminars establishing a 5G intelligent control
equipment task forces to analyzing to ensure alignment and execution center,and deploying a 5G (SA)
the cost structure of each order across all levels ^ + MEC private network to enable
and marginal contribution gross full-process data management for
profit of each product, enabling Enhanced communication: production, quality inspection,
targeted management and Establishing shared platforms and logistics across Mianyang and
mobilizingall employees' initiative and communication mechanisms other subsidiary locations
Model introduction: Introducing information connectivity Cultural development: Promoting
an independent operating unit, corporate culture development,
fosteringa culture where everyone strengthening mentoring for new employees,and fosteringa culture
innovation of open knowledge sharing and meticulous guidance

Focus on Core Business:

Driving Value through Innovation and Quality

Scientific and Technological Innovation: Leading the Future with Intelligence

Governance

ChanghongNewenergyhasincorporatedscientificandtechnologicalinnovationintoitstop-levelgovernanceframework,establishing aful-processinnovationgovernancesystemcoveringR&Dplannng,technologymanagement,commercializationofinnovation achievements,ndintellctualpropertyprotection.Throughstandardizedmanagement,specializedorganization,ndsytematic support,theCompanyprovidesstablegovernanceasurancefortechnologicalinnovationanddigitalandintellgenttransformation.

● Established a scientific and technological innovation governance system featuring Board decision-making,management-level coordination,Technology Center leadership,multi-base collaboration,and industry-academia-research linkage.Innovation management is embedded into all aspects,including business decision-making, R&D investment, project development, commercialization of innovation achievements,and intellectual property management;
Innovation
Governance ● Establishment of Alkaline Battery Application Technology R&D Center, Lithium Battery
Structure Application Technology R&D Center,deepening industry-academia-research collaborative innovation; ● Established a coordinated mechanism for geographically distributed R&D and production, enabling the sharing of technologies,data,equipment,and talent resources,thereby enhancing overall innovation efficiency. ●Established a fullife-cycle management system for R&D projects,standardizing processes such as project initiation,R&D,testing,mass production,and post-project review,ensuring precise
Innovation and efficient R&D investment;
Institutional System ●Improved the intellectual property management mechanism,strengthening patent application, maintenance,utilization,and risk prevention and control,and promoting the standardization and capitalization of technological achievements.

Strategy

Guidedbyitsbrandphilosophyof technologyempowermentforgoodbusiness",ChanghongNewenergyadherestothedevelopment strategyof"technology-driven leadershipandproductexcellence"andtheR&Dorientationof technologycommercializationand market-driventechnologydevelopment".Focusingonthreecorebusinesslines-alkalinebatteries,high-ratelithiumbateries,nd polymerlithium-ionbatteries—theCompanyisdrivenbybothtechnologicalinnovationanddigitalandintellgenttransforation. Throughsystematicidentificationofrisksandopportunitiesacrosstheinnovationlifecycle,andbyimplementing measuressuch asbreakthroughsinkeytechnologies,developmentofigendproducts,industryacademia-researchcollboration,andeficient commercializationofachievements,theCompanycontinuouslybuilds technologicalbariersandcoremarketcompetitiveness.

Impact, risk, and opportunity management

Changhong Newenergyhas establishedacomprehensivemanagementmechanismcoveringidentification,asessment,monitoring, response,andoptimizationofinnovationelatedimpacts,isksandopportunities.FocusingontechnologyR&D,productiteration digitalandintellgenttransformation,commercializationofachievements,andcompliancestandards,theCompanyensuresthat inovatioisksarecontrollbleandopportunitiesareefectivelyonverted,therebycontiuouslyimprovingtheefectivenesofits innovation system.

●Based on industry technology trends,market demand,policy standards,customer feedback,and internal R&D data,systematically identify and assess risks and opportunities related to technology pathways, R&D investment,commercialization, talent support,and intellectual property,forming a key control list.

●Conduct regular monitoring of R&D project progress,input-output performance, patent portfolio,product validation,and production line adaptation;

Improve closed-loop managementof technology breakthroughs,pilot testing,and mass production introduction to enhance commercialization rates;

●Strengthen intellectual property risk prevention and controland promote integration of patent layout with standards,and enhance compliance and risk resistance capacity.

● Enhance coordination efficiency across R&D,production,and quality control through digital and intelligent tools, reducing trial-and-error costs in innovation.

Integration and Continuous Optimization

OIntegrate innovation risk management into corporate strategy, R&D management, manufacturing,market expansion,and supply chain management.Continuously optimize innovation directions and resource allocation in response to technological iteration,market changes,and policy updates to maintain strategic adaptability and competitiveness.

Indicators and targets

CASE丨

Changhong Sanjie Deepens Its Presence in the Lithium Battery Sector, Phase IV Project Enhances Capacity and Quality

InJuly2025,thePhaseIVprojectofChanghongSanjieTaizhou,featuringan18650lithiumbatteryintellgentproductionline,was oficiallyputintooperation.Teproductionlineishighlyautomatedandintellgent,withanoutputof300batteriesperminute.It is equippedwithafullineCDinspectionsystemandapliesAltechnlogiesforfullprocessqualityinspection.Combinedwitha datacenter"smartbrain",itenablesrefiedproductionmanagement.ChanghongSanjiehasdeplyfocusedonthehigh-ratebattery segment, with direct R&D investment accounting for >=slant 4 % of annual sales revenue.As of December 2025, Changhong Sanjie had appliedforover110patents,withapproximately100patentsgranted.Its270-50o0mAhbatteryhasginedmarketrecogtionand successfullyenteredthesupplychainofAnker,with productsappliedin high-end productssuchasthe MagGo PowerBank.

Annual Highlights * * Digital and Intelligent Innovation

● Changhong Newenergy was awarded the title of Benchmark Enterprise for "intelligent transformation and digitalization" in Mianyang's manufacturing industry for 2024

●The alkaline zinc-manganese batery production line technological transformation projectof Changhong Camelion was awarded as a Jiaxing municipal-level industrial and information development funding project.

※※Annual Focus · Exhibition of Technological Innovation Achievements Across Changhong Newenergy's Three Major Business Lines

Accelerating high-end R&D

Focusing on the development of ultra-high-performance products such as LR6H ( \mathsf E 9 + ) , LR14 ( \mathsf { D 9 + } ) ,and LR03H ( \mathsf E 9 + ) the Company hasachieved breakthroughs in cathode formulation,structural design,and new materialapplications, promoting product performance upgrades and industrialization.

Breaking through technical bottlenecks

In response to EU plastic-free requirements,the Company has established full-series paper-based packaging capabilities foralkaline battery products,overcoming technical bottlenecks insteel shellanti-corrosion,structural design,and equipment adaptation.

Improving R&D efficiency

6 6 new pieces of equipment,including adhesive coating, crimping and scoring,and high/low temperature testing equipment,have been added to laboratories.The Camelion base has established dedicated cathode and anode laboratories, increasing R&D testing efficiency by 30 %

Strengthening intellectual property protection

The Company has enhanced its intellectual property and standards system,applying for 16 new patents (3 invention patents and 13utility model patents)and obtaining7authorized patents (including 4 invention patents).It has also participated in revising three national standards-GB 8897.1/2/3-further strengthening its industry influence.

High capacity and extended endurance

Batteries for smart security devices adopt EMC-compliant technologies to enhance adaptability in complex electromagnetic environments. Power solutions for smart locks improve energy density through structural optimization,increasingendurance by 2 0 % ,while innovatively replacingcommon-mode inductorswith magnetic beads to balance cost and reliability.

High safety and ease of operation

Portabledevice battries integrate multiple hardware protection schemes,covering scenarios suchas overcharge and over-discharge. Backup power supplies adopt an "AFE ^ + ARM" architecture to enable intelligent diagnostics and fault traceability.High-rate device batteries feature slide railsand quick-plug interfaces,improving battery replacement convenience and accuracy.

Strong adaptability and long service life

Aviation backup power supplies are compatible with dual charging ports,featuring military-grade structures and balanced sampling technology to operateunder extreme conditions.Drone batteries optimize heat dissipation paths and introduce laser welding processes,effectively improving temperature rise and cycle life.

Intelligent and precise control

Power systems for sports equipment use the I2C protocol to enable precise monitoring of parameters such as SOC, with an error margin of less than 5 % .Commuter vehicle batteries are equipped with RS485 communication and lowtemperature startup mechanisms,enhancing adaptability in cold environments.

Rich intellectual achievements

4 patents have beenaccepted,covering design patents,utilitymodels,and invention patents,demonstrating notable achievements in technological innovation and intellectual property protection.

Stable battery system

The Company has introduced 9-series high-nickel materials combined with CVD silicon-carbon composites, significantlyimproving battery energydensity.It has also optimized electrolyte formulation to enhance impedance performance and cycle stability under high-rate conditions.

Optimized product performance

By precisely controlling the jelly-rolldiameter and optimizing the electrode calendering process,the Company has improved mechanical performance and safety.It has developed thin electrode technology and low-impedance electrolytes,and successfully launched tablessbattery structures,effectivelyreducing temperature riseduringhighrate discharge.

Improved production efficiency

Through measures such as adjusting materialratios,optimizing conductive networks,andimproving electrolytefiling windows,the Company has further enhanced battery consistency and production effciency.

Commercialization of innovation achievements

A total of \boldsymbol { 3 4 } patents have been applied for,including12 invention patents and ^ { 2 2 } utility model patents.

Craftsmanship Manufacturing: Excellence in Safety

Governance

ChanghogNewenergyupholdsitscorporatemisionof"precisionmanufacturing,technologicalinnovatio,andbenefitingnity. Itincorporatesproductsafetyandqualitygovernanceintoitstop-level governanceframework,establishingagovernancesystem featuring Boarddecision-making,management-levelcordination,leadershipbytheQualitySupervisionandManagementDivsion, cross-deparmetallotiodfullccoutabilitossallitios.istovrsttireainci&, procurement,productioninspection,ales,andfter-salessevice.hroughinstitutionalimprovement,ganzationalfegads, accountabityimplementation,andsupervisionandaccountabilitymechanisms,theCompany has establishedastandardized, regulated,anddigitalizedproductsafetyandqualitygoverancesystem,strictlyadheringtosafetybaselinesandqualitydlnes.

Improving Organizational Structure
Establisheda Quality Management Committee,appointingqualityleadersatallevelsandimplementingajoint sign-off mechanism to optimize quality control processes and review mechanisms;
Designated the Quality Supervision and Management Divisionas the lead department for quality management, responsibleforoverallcoordinationoffullprocessqualitycontrol,systemmanagement,accountabilityforquality incidents,customer complaint handling,and quality supervision of subsidiaries;
Established a cros-departmental coordination mechanism covering "R&D - procurement -production-inspection -sales-after-sales",ensuring fullaccountabilityfor qualityacross all personneland embedding the philosophyof building a quality-driven enterprise throughout the entire value chain.
Improving Institutional Mechanisms
Enhancing traceability mechanisms: The Company has established the Measures for Identification and Traceability Control,recordingandlabelingrawmaterialbatch information,productiondata,and productinformation.Throughthe construction and continuous improvementof the MES system,traceabilitytimelinessand accuracy have been further enhanced.
Strengthening process control: Strictly implementing the accountability mechanism for qualityincidents, the Company conducts daily sampling inspections of key processes,bi-monthly inspections ofbattery cellimpurities,and monthly dual reviews of "compliance ^ + effectiveness".It has also improved ODM product control processes to meet compliance requirements such as EU Battery Regulations and REACH.
Standardizing emergency response: The Company has established the Product Recall Management Measures to standardize response procedures and working methods for product recals after delivery,ensuring rapid control of defective products in the market and minimizing customer losses.

Strategy

ChanghongNewenergyadherestothequalityphilosophyof"beingresponsibleforthenextprocessand"manufacturedwithcarefor yourconfidenceinuse".Focusingonitsthreecoreproductcategoriesalkalinemanganesebatteries,higratelithiumbateries,nd polymerlitim-ionattriesheompanytakefull-procssualitontrol,fullifecycesfetysuracedigialandtelnt qualitynspectionugrades,andcustomer-orentedsericeehancementasstrategicpriorities.Itsystematicallyidentifiesrisksand opportunitiesinareassuchasproductsafety,qualitystability,compliancecertication,traceabilitymanagement,andcustomer service,contioslprinproctbityetyoistecydnutrangalitmpetiti brand reputation.

Craftsmanship Delivers Quality Excellence

Focusingonthreecorebatterycategories-primaryalkalinemanganesebateries,high-ratelithium-ionbatteries,andpolymer lithium-ionbateries-ChanghongNewenergyhasestablishedinteligentproductioncapacityacross multipledomesticandverseas manufacturigbases.TheCompanyofersafullrangeofcustomizedproductsand,leveragingadvantagessuchashighperformance andhighsafety,servesawidearrayofaplicationscenariosincudnghouseholdconsumption,industrialequpmentandart terminals.Throughgrenandintellgentmanufacturing,itempowers globalmarketsandstrengthensitsindustrycompetitiveess.

[Primary Alkaline Manganese Batteries]

Production capability:Has three majormanufacturing bases in Mianyang,Sichuan; Jiaxing,Zhejiang; andThailand with dozensofadvanced intellgent automated battery production lines; the highest productionspeedof intelligent lines reaches 9OO batteries per minute

Battery products: Fullrange of alkaline batteries including LR20 (D),LR14(C),LR6 (AA),LR03 (AAA),and 6LR61 (9V)

Productfeatures: High performance,high capacity,high safety,long servicelife,flexibility,and consistency

Application fields: Medical testing,home life,audio-visualentertainment,office applications,and many other scenarios

[High-rate Lithium-ion Batteries]

Production capability: Two major production bases in Mianyang, Sichuan and Taixing, Jiangsu, with ^ { 9 } high-speed advanced production lines; the maximum speed of intelligentlines reaches 3OO batteries per minute

Battery products: Cylindrical ternary lithium batteries,cylindricallithium iron phosphate batteries,and cylindrical sodium-ion batteries

Product features: High charge-discharge rates,ultra-wide temperature performance, high safety,and high consistency

Application fields:Powertools,cleaningtools,transportationtools,householdappliances,drones,robots,andother specialized applications

[Polymer Lithium-ion Batteries]

Productioncapability:Two major production bases in Huarong, Hunanand Shenzhen,Guangdong,equipped with aful
set of advanced polymer battery manufacturing equipment
Battery products:Prismaticbatteries,L-shapedbatteries,curvedbattries,tabbatteries,semi-solid-statebateries,and
others
Product features: Ultra-wide temperature range,high energy density,flexiblecustomization,fastcharging,safety,and
long cycle life
Application fields: Consumer electronics,smart wearables,medical devices,smart home,and loT terminals

ApplicationFields

CASE丨园

Oficial Commissioning of Changhong Newenergy's Thailand Subsidiary Unleashes New Global Momentum for Green Batteries

In December 2025,Changhong NewEnergy (Thailand) Co., Ltd.was officially put into operation in the Chonburi Industrial Park.The project involved a total investment of RMB 246 million, and in its first phase established five intelligent production lines for high-end alkaline batteries, covering the full range of alkaline battery products including AA batteries.The plant adopts intelligent production and lean management, strictly implements green and environmental standards, and supports local industrial upgrading and employment development.The commissioning of the plant marks the establishment of Changhong Newenergy's "China-Thailand intelligent manufacturing ^ + global sales" model. Going forward,Changhong Newenergy will further increase R&D investment in green technologies and battery recycling，promoting product upgrades toward "high performance,long service life,traceability,and recyclability",and serving global markets through green and intelligent manufacturing.

Deepening Product Quality

AdheringtoitsQualityPhilosophyof"Builtwithcare,usedwithconfidence",ChanghongNewenergyupholdsthequalitymanagement requirementsof "strictcontrolatincominginspection,prudentcontrolthroughoutheprocess,andprecisecontrolatsipment inspection".Iasestablishdafullproessmanagementsystemoveringproducttraceablityalityontrol,andandadeal management,strictlysafeguardingqualityredlinesandsafetybaselines.TheCompanyembedsthephilosophyofstrengtheningthe enterpriethroughqualitythroughouttheentirechainofproductR&D,procurement,manufacturing,sales,andservice,layingasolid foundation for high-quality development through quality and excellence.

Improving the Traceability Mechanism

TheCompanyhascariedoutproducttraceabilitydilstotrace themanufacturing informationofaspecificbatchoffinished productsandthecorespondingbatchesofrawmaterialsused,therebyverifyingtheefectivenessoftheexistingproduct identification and traceability system.

OIt has strengthened theapplicationofAl-based qualityinspection byaddingand upgrading online inspectionsystems in components,battry cels,packaging,and other processes,comprehensively upgrading the quality monitoring methods used during manufacturing and enhancing monitoring efectiveness.

●RelyingonlaboratoriesaccreditedbyCNAS,theCompanyconductscomprehensiveevaluationsof discharge performance and safety performance for each batch of products before shipment to ensure shipment quality.

Strengthening Quality Control

●The Company has strengthened system certfication and added control procedures for externall procured ODM products, reinforcing qualitycontrolin supplier admision,productionsupervision,product sampling inspection,and performance evaluation.Itcontinues tomeet producttestingand certificationrequirements underthe EU Batery Regulation,REACH SVHC,and other applicable requirements.

OItconductsdailysamplinginspectionof key product characteristics in critical processesand hasincreasedthe frequencyof batterycellimpurityrisk inspections to twiceamonth,comprehensivelyscreeningfor impurityrissacross productionlines. Each month,itperformsfullcoverage processsupervisionandaudits,upgradingfromcompliancereviewtoadualreviewof "compliance ^ + effectiveness",thereby improving process quality control.

OIthas also improved shipment qualitycontrolby implementing fullprocesssupervisionand management,strictlyreviewing shipmentqualityinspection reports,with particular focus on reports for keycustomers.Forregular customers,it has optimized theformatofoutgoing inspectionreportsandadoptedinspection ledgerrecordstoimprove issuanceefficiency.

CASE丨

Changhong Newenergy Launches Quality and Safety Month Activities

In September2025,ChanghongNewenergycariedoutitsQualityMonthcampaignunderthethemeof"Guidedbyproducts,builton quality,strivingforexcelencethroughcoordinatedqualityimprovement".Throughaseriesofmeasures—includingimprovingthe qualitymanagementorganzatioaltructure,establishingtheQualityanagementCommite,appointingqualityleaderstllvels andimplementingajointsign-offmechanism,optimizingqualitycontrolproceduresandreviewmechanisms,caryingoutcompanywidequalitywaringeducation,skilsevaluatios,andspecializedtrainingforinspectionpersonnel,strengtheningaccotability forquality,revisingandimprovingmultipleworkinstructionsand managementstandards,reiforcingstandardizedon-site5S management,andadvancingkeyproblem-solvingprojects—theCompanycomprehensivelyreinforcedproductqualitydefensesthrough managementupgrading,standardsimplementation,technologyempowerment,anddigitalcolaboration,therebyconsolidatingthe foundation for high-quality development.

CASE丨

Changhong Newenergy Conducts Training on Packaging Process Quality and Equipment Operation Skills

In June 2025,Changhong Newenergyorganizedaspecialtrainingsessionon"Packaging Process QualityControland Equipment Operation"formorethan110employeesfromthePackagingDepartment.Thetrainingcoveredpackagingprocesses,qualitycontrol atkeyprocedures,materialmanagement(includingthediferentiationofeasilyofusedmaterials)equipmentmaintenancefault handling,andsafeoperation.ThroughexplanationsoftypicalcasesandinteractiveQ&A,itefectivelyimprovedemployeespractical skills and awareness of quality responsibility,safeguarding the high-quality delivery of products.

CASE丨

Changhong Sanjie's Digital and Intelligent Ful-process Quality Management Project Improves Production Efficiency

In2025,throughinstitutioalrestructuringprocesotimzationnddigitalenablement,ChanghongSanjeestablishdaigitaland inteligentfllrocssalitaagementeovingiomigspectiinpaoductitaceabilitl orderfollow-up,SPC monitoring,and customerfile maintenance,thereby improving both qualityand efficiency.

Full-process quality supervision:

Byestablishinganenterprisebrainsystem,ChanghongSnjieeliminateddatasilosacrossallinksandenabledreal-timecollection intelligent analysis,and visual display of quality data.

Traceability and efficiency improvement:

Itachievedful-processtraceabilityfromrawmaterialstofinishedproducts,reducingtraceabilityresponsetimefrom48hoursto10 minutes and improving abnormal issue handling efficiency by 5 0 %

SPC digital standardization:

ThsystemautomaticallgeneratesSPCmonitoringandcontrol,reducingmanualstatisticaloutputandimprovingeficiencybymore than 8 0 %

Annual Highlights * * Craftsmanship Quality

● Changhong Newenergy received the "Core Components Craftsmanship Award" at the first Yanshi Awards for Embodied Intelligent Humanoid Robots

●Changhong Camelion was recognized by Chengnan Subdistrict, Jiaxing Economic and Technological Development Zone,as a "2024 Industrial Enterprise for High-quality Development".

Serving Customers with Commitment

GuidedbyitsMarketPhilosophyof"customer-orientedandfocusedonuserneeds",ChanghongNewenergyintegrates thecoreoperating philosophyof "user-centeredness"throughoutthefullvaluechainofR&D,manufacturing,management,marketing,andservice. It continuouslyimprovesitscustomerprivacy protectionmechanism,establishesastandardized closed-loopcustomercomplaint handlingsystem,espondseficientlytoustomerfeedbackndesolesssueeffectivelyandmakeseveryeforttoanceutomer satisfaction.

complaint handling process that enables market-end feedback to be accurately synchronized in the first instance to production, technology, quality, and the Company's management. The analysis and handling results are assessed online, effectively improving complaint response timeliness and handling quality. Precise issue identification: Dedicated complaint analysts are assigned to conduct detailed sample analysis for each complaint and,as needed, carry out teardown analysis and professional testing to accurately identify root causes, formulate improvement measures,and provide timely feedback to enhance customer service satisfaction.

Enhancing Customer Satisfaction

Regular response: The Company has established the Customer Satisfaction Evaluation Procedures, conducts customer satisfaction surveys on a regular basis, responds promptly to customer opinions and suggestions,and drives continuous improvement in products and management.

Standardized handling: Based on customer satisfaction survey results, it conducts analysis and prepares annual satisfaction reports,and implements targeted rectification and closed-loop improvement for quality issues.

Precise services: The Company adopts a dedicated account-based service model to accurately match customer needs, track order production,delivery,and after-sales service throughout the process, and build an integrated service system covering demand response,process tracking,and after-sales support, thereby continuously improving customer satisfaction.

CASE丨

Changhong Juheyuan Mobilizes the Entire Workforce to Deliver Orders in a Critical Campaign

Inthesecondhalfof2025,facingasurgeinordersdrivenbyrapidgrowthinaplicationsacrossmultiplefields,ChanghongJuheyuan launchedadedicateddeliveryasurancecampaignunderthe guidingprinciplethat"ensuringdeliverymeanssafeguardingreputation andmarketshare".TheCompanyestablishedaspecialdeliveryassrancetaskforceandintroducedan"hour-level"problemresponse mechanism.Managementwenttotheworkshopsdailytooverseeon-siteexecution,whilePartymembertaskforcesremainedatkey positions.Ontheproductionside,amulti-shiftoperating modelof"machineskeeprunnngwhenpeoplerotate"wasimplemented, with process teamsaddressingisuesonsite.Onthesupplychainside,a"jointsupplyassurance"mechanismwasestablishedwithkey suppliers,andtheintellgntESsystmeabledefentfullprocessoordinationAsesult,thCompanysuccessullycplete multipleurgentordersachievinghigqalitydeliveryonsheduleorevenaheadofschedule,wininghigrecognitionfromdomestic and overseas customers and further consolidating its strategic partnerships.

CASE丨园

Changhong Sanjie Strengthens the Protection Line for Customer Privacy

Changhong Sanjieataches greatimportanceto customer privacy protectionand strictlyimplementsconfidentialityrulesand informationmanagementsystems.Fromthetechnicalcontrolperspective,theCompanyhasactivatedrole-basedaccesscontrol in its CRM/customermanagementsystem,clearlydefiningpermisionboundariesandstrictlyprohibitingunauthorizedviewingorbulk exportofcustomerinformation,therebypreventinginformationleakagerisksfromthetechnicalside.Fromthepersonnelmanagement perspective,itorganizedallemployees tosignconfidentialityagreementsandstrengthenedawarenessofprivacyprotectionand confidentialitycomplianceacrosstheworkforce.Throughmultidimensionalcontrolsandimplementation,theCompanyhasachieved notableresultsincustomerprivacyprotection,ealizingzerocustomerinformationleaks,zeroviolations,andzerocomplaints,nd passed relevant compliance inspections in one attempt.

Impact, risk, and opportunity management

ChanghogNewenergyhasestablishedamanagementmechanismcoveringtheidentification,asessment,monitoring,responsend optimizationofimpacts,issndpportunitiesrelatingtoproductsafetyandality.Itariesoutfulhainmanagementcosthe entireprocess,fromrawmaterialadmisson,productionprocesses,finishedproductinspectionandspmentcntroltostomer after-salesservice,ensuringthatqualityrisksarecontrollble,developmentoportunitiesareefectivelyconverted,andproduct reliability and service assurance capabilities are continuously improved.

●Based on compliance standards in the battery industry,market demand,customer feedback,and actual production and operational conditions,the Company systematically identifies and assesses risks and opportunities relating to product safety,quality stability,traceability management,and customer service,forms a list of key control items,and clarifies core risk points and directions for improvement.

● It conducts regular monitoring throughout the full process,including incoming raw material inspection,key production processes,finished product shipment inspection,and customer complaints.

●It improves quality control measures such as Al online quality inspection,SPC digital monitoring,and full-item testing in CNAS-accredited laboratories,thereby enhancing process quality stability.

●It strictly implements the accountability mechanism for quality incidents,reinforces quality responsibility acrossall personnel,and strengthens closed-loop rectification ofabnormal issues.

● Relying on the MES system,it improves the full-process traceability mechanism and enhances the efficiency of emergency response in areas such as customer complaints and product recalls.

●The Company fully integrates product safety and quality management into allaspects of corporate strategy, R&D management,manufacturing,supply chain management,and customer service. Based on updates to industry standards,upgrades in customer demand,and internal operational data,the Company continuously optimizes quality control processes,traceability systems,and service mechanisms,thereby continuously improving product quality and customer satisfaction and consolidating the foundation for high-quality development.

Indicators and targets

Industrial Collaboration: Connected Supply Chains for Shared Success

Guided by the principles of openness, collaboration, and win-win cooperation, Changhong Newenergy advances both industry co-development and joint supply chain governance. By actively participating in the development of the industry ecosystem and in professional exchanges, the Company shares practical experience, builds consensus for development, and contributes to the establishment of a green and sustainable industrial ecosystem. At the same time, it continuously improves its procurement and supplier management systems, fully implements responsible procurement and full life-cycle supplier management, strictly enforces the requirements of transparent procurement and green procurement, and is committed to building a safe, transparent, and sustainable modern supply chain.

Industry Co-development

Changhong Newenergy is deeply integrated into the industry ecosystem. Taking openness and collaboration as its approach, it actively participates in activities organized by industry associations at various levels, technical exchange conferences, and other professional organizations, shares practical achievements, and empowers the industry's high-quality development through its own practices, thereby contributing to the building of a sustainable industrial ecosystem. In 2025, Changhong Newenergy received the Outstanding Contribution Award in the Battery Industry from the battery industry association.

In May 2025, Changhong Newenergy participated in the 17th Shenzhen International Battery Technology Exchange/Exhibition, where it showcased its solutions in areas such as alkaline batteries, consumer electronics, the Internet of Things, and AI, providing powerful energy systems for the AI era.

In September 2025, Changhong Newenergy showcased products including alkaline batteries, cylindrical high-rate batteries, polymer lithium batteries, and semi-solidstate lithium batteries at the International Lithium Battery Industry Conference, jointly promoting the industry toward a "new-quality future".

ESG Management of the Supply Chain

Changhong Newenergy has formulated aseries of policies,including the Basic Management System for Materialand Service Procurement,the MeasuresforService Procurement Management,andthe BasicSupplier ManagementSystem,tocomprehensively advanceresponsibleprocurementandfullife-cyclesuppliermanagement,promote teimplementationoftransparent procurement andgreen procurement,standardize suppliermanagement,anddrivethe procurementsupplychain toward systematization, institutionalization,tandardization,andnormalization.Itisommitedtouildingasafe,tansparent,andustaablespplyhain system and injecting strong momentum into the industry's continued high-quality development.

\bullet TransparentProcurement

Changhong Newenergyvigorouslypromotes transparentprocurement. Relyingonadigitalprocurement platform,itcontinuously standardizesprocurementprocesses,improvesmanagementandcontrolmechanisms,comprehensivelystrengthenstheprocurement riskpreventiodotrolsstemndsurestatthtireprocuremntprocsisirmpartialen,trasparent,aarded and efficient.

Digital and Intelligent Platform Risk prevention and control Standardized Operations Process Compliance
Operation of digital and intelligent systems: Relying on Checks and balances of powers and responsibilities: The
the Group's procurement information system,the Company Company strictly implements the segregation of incompatible
ensures full-process traceability and full-chain closed- duties,adopts separate job authorization, hierarchical
loop management for procurement applications, supplier authorization,and regular job rotation systems.
selection,contract signing,and key service procurement
activities such asadvertising and logistics. Strict supervision: It has established an expert pool for supervision and inspection to carry out process supervision,
Unified and standardized operations: We maintain a and strictly prohibits collusion,manipulation,or improper
unified procurement management system, centralized interference in procurement activities.
supplier resource management, standardized material
management strategies,and integrated IT system tools
to ensure transparency and efficiency in procurement Standardized recordkeeping: Procurement personnel are
operations. responsible for truthfully and completely archiving process records, quotation materials,and all activity documents to ensure full-process traceability of procurement materials and flows.

Green Supply Chain

Changhong Newenergycontinuouslyimprovesits gren procurement management system.Focusing onkeylinkssuch assupplier management,procurementexecution,andincomingmaterialinspection,itstrengthensgreenandenvironmentalprotectiootrol throughouttheentiresupplychainprocessanddeplyintegratesecologicalandenvironmentalprotectionconceptsintothewhole supply chain.

●Green and environmental compliance is treated as a mandatory requirement.Suppliers are required to obtain ISO 1400l environmental management system certification and provide third-party testing reports Green (RoHS/REACH SVHC). Procurement ●Inannual assessments,the continued stability of hazardous substance controlis included in the evaluation system. Green ●Logistics cariers are required to use transportation vehicles with higher emission standards(China Vl or Transportation new energy vehicles) to reduce carbon emissions during transportation.

\bullet Full lifecycle management of suppliers

Changhong Newenergy has establishedafullife-cycle suppliermanagement systemcovering sourceadmision,cooperation performance,gradedevaluation,incentiveandrestraintmechanisms,exitcontrol,andresponsiblemineralsmanagement.ESG compliance,integritybasediskpreventionandcontrol,andsuplyhainsecurityaredeeplyintegratedintothentiremaagement process.Throughunifiedevaluationstandards,standardizedcontrolprocedures,enhanced gradedandcategorizedmanagement, improvedreward,penaltyandexitmechanisms,strictcontroloverhigh-riskminerals,andthepromotionofsupplydiversification, theCompanyomprehensivelyeancessuplyhainstabilityesilence,andoverallompetitiveness,efectivelyensurngthesafe, compliant,and sustainable operation of the supply chain.

Changhong Newenergy's Supplier Full Life-cycle Management Flowchart

Supplier Admission

●The Company has established a strict ESG supplier admisson one-vote veto mechanism,under which certifications such as environmental management system certification and occupational health and safety management system certification are mandatory prerequisites for the admisson of new suppliers. ● Suppliers are required to sign the Supplier Social Responsibility Agreement and strictly comply with international labor standards and business ethics.

Daily Management and Evaluation

●Key suppliers are required to conduct annual self-assessments of their fulfillment of social responsibility and submit reports,which serve as an important basis for audit and evaluation.

●Through means such as restricted substance conformity declarations,the Company promptly communicates the latest environmental regulations,including the EU Battery Regulation,as well as the Company's sustainability requirements,thereby helping suppliers improve their compliance management capabilities.

Incentives and Exit

●The Company establishes long-term and stable strategic partnerships with core suppliers and adopts positive incentive measures, such as increasing the cooperation share of suppliers with outstanding overall performance.

OIt has established an orderly supplier exit mechanism and strengthened risk assessmentand full-process control at the exit stage.

●The Company strictlyimplements the blacklistsanction mechanism.Suppliers that violate rules,fail to honor commitments,engage in commercial bribery,or commit other illgal, non-compliant,or unfair competitive acts during bidding,tendering,or contract performance are placed on the blacklist and publicly disclosed on the procurement information platform.In serious cases,complaints are rejected in accordance with the law and cooperation is permanently terminated.

Conflict Minerals Management

●The Company has established the Management Procedures for Control of High-risk Minerals,expanding the scope of controlfrom traditional 3TG conflict minerals to broader high-risk minerals with material environmental and social impacts.For 3TG minerals,suppliers are strictly required to use only green smelters certified under the Responsible Minerals Assurance Process (RMAP) certification.

● Suppliers of key raw materials such as zinc,steel, nickel,and graphite are required to disclose information on upstream smelters or processinglinks and undertake that raw materials are not sourced from conflict areas subject to international sanctions or from areas where illegal mining exists.

●The Company implements a diversified sourcing strategy to reduce excessive dependence on any single supplier or region, continuously reviews supply resources for bottleneck materials,establishes and improves alternative supply plans,and comprehensively enhances supply chain security and resilience.

Integrity-based Supply Chain

Guidedbytheprincipleof"fess,justicepenness,ndintegrity",ChanghongNewenergyintegratesompliantoperatiosnd integrity-basediskpreventioandcontrolthrougouttheentireprocssofprocurementtenderingbidevaluationandexecutiond contractperformancemanagement.Byimprovinginstitutionalconstraints,strengtheningcommitment-basedcontrol,andrefining theconflict-of-interestrecusalmechanism,theCompanycomprehensivelypreventsintegrityrisksinprocurement,resolutelycurbs corruption,and efectivelysafeguards the legitimate rightsandinterestsand operationalsecurityofthe Company.

●Suppliers are strictly required to sign the Anti-Bribery Commitment Letter and the Supplier
Standardized Social Responsibility Commitment Letter, ensuring integrity,fairness, standardization,and Systems transparency throughout the entire transaction process. ●The Company clearly stipulates conflict-of-interest recusal requirements for personnel involved in procurement,evaluation,and complaint handling. Any person having an employment relationship,kinship,or any other conflict of interest with a supplier that may affect impartial performance of duties must proactively declare such relationship and recuse Recusal themselves.
Mechanism The procurement execution department shall dynamically manage conflict-of-interest declarations and file them with the responsible department as required, thereby strengthening the compliance and integrity risk prevention and control line of defense.

Green Transition

Safeguarding the Ecosystem Through Low-Carbon Development and Circularity

principles, and enabled sustainable development: with institutional systems and strictly upheld the bottom line resource circulation and continuous optimization of carbon commitment to protecting lucid waters and lush mountains and jointly building a sustainable development landscape.

Green Management, with Systems Taking theLead

2025

Cumulative environmental protection investment:RMB 2.0673 million

material environmental risks orenvironmentalviolations

●87 environmental compliance obligations were updated and identified during the year

Oenvironmental penalties/orders imposed bygovernment environmental authorities

Refining Environmental Management

●Allsubsidiariesanddepartments signed the Environmental ProtectionTarget ResponsibilityStatement,establishingan accountabilitysystemwith responsibilities extendinghorizontally toallfunctionsandvertically toallevels,andensuring that environmental management responsibilities were cascaded and implemented at every level.

● Relying on platforms suchas Environmental Credit China to disclose environmental information,and conducting environmental performance assessments on the HIGG Index platform,the Companyfullydisclosed assessment results and enhanced the transparency of environmental information.

Set Quantitative Targets

●Centeredonthetwoobjectivesof "conserving energyandreducingconsumption,promotinggreenproductionandbuildinga zero-carbonenergyfactory"and "continuouslyimproving environmentalmanagementperformanceandstrivingtobecomea provincialenvironmentallytrustworthy enterpriseandanenterpriseratedGradeAinheavypollution weatherperformance", the Companyscientificallyseteight quantitative indicatorsand formulated supporting refinedimplementation plans.

●Theresponsiblepartyandenvironmentalmanagementresponsibitesforeachindicatorwereclearlydefinedandatracking and supervision mechanism was established to ensure that annual environmental targets and key indicators would be achieved on schedule.

Improved Emergency Response Mechanisms

●TheCompanypreparedtheEmergencyResponsePlanforEnvironmentalIncidentsand,asrequired,submitedittohelocal competentecologicalandenvironmentalauthorityforfiling,therebyestablishingastandardizedandorderlyenvironmental emergency management system.
● Monthly inspections were conducted on the operating condition of emergency supplies such as fire hydrants and fire extinguishers in productionsites,warehousesandotherareas,while teams were supervised inconductingtwice-monthly self-inspections of emergencyfacilities to ensure that such facilities remained intactand available for use.
●Emergencydrilsfor environmental incidents wereconducted onaregularbasis,effectivelytesting thepracticalityand effectiveness ofthe emergencyresponse planandon-siteresponse procedures,and enhancing all employees'emergency response and risk coping capabilities.

Assessed Environmental Risks

OInlightofchangesintheCompany'sinternalandexternalenvironment,andthroughon-sitevisitsandfieldverification, 124environmentalfactors were identified,including9significantenvironmentalfactors.Specialcontrolmeasures were formulatedfordifferent environmentalfactors,and monthlysupervisionand inspections werecarriedout forsignificant environmental factors to ensure full-process control.

OInaccordance with system planning requirements,the Company identifiedand evaluated the environmental risks and opportunities itfaced from theperspectives of significant environmental factors,compliance obligations,internal and externalenvironment,andrelevantparties.Atotalof21environmental rsksandopportunitieswereidentified,andcontrol measures were formulated for 9 of them,enabling effective management of risks and opportunities.

● On-site environmental management inspections were conducted monthly,focusing on the control of significant environmentalfactors and implementationof management plans,with inspectionresultsrecorded indetail.For issues identified,responsiblepersons weredesignated,rectificationdeadlines wereset,andtheprogressandeffectivenesof rectificationweretracked,formingaclosed-loopmanagementmechanismof"inspection-rectification-verification"

Green Production andLow-Carbon Development

Combat with climate change

Governance

Changhong Newenergyestablishedaclimategovernanceorganizationalstructurefeaturing overallcoordinationbythe Boardof Directors,accountabilityaagementando-dpartmentalcollaboatio.Itarifdoveaceesposibiltdisio making proceses,incorporatedclimaterisksintothecomprehensiveriskmanagementsystem,formedaninstitutionalizedand normalized climate governance mechanism,and consolidated the foundation for low-carbon transition.

Board of Directors Management Execution Level
It assumes ultimate decision- It coordinates and advances core tasks Departments including the Production
making responsibility for major including greenhouse gas accounting, Management Headquarters,
matters including the Company's energy-saving and carbon-reduction Technology Center, Development
climate-related strategy, risks upgrades,green energy projects and Management Headquarters
and opportunities,and emissions industry standard-setting,ensuring (Procurement Department),and the
reduction targets,and supervises the deep integration of climate strategy Safety and Environmental Protection
implementation effectivenessof the with business development. Departmentwork collaboratively to
entire climate governance process. carry out implementation inareas such as energy consumption management, supply chain decarbonization and process emissions reduction.

Strategy

Closelyaligned withthenationalcarbonpeakingandcarbonneutralitystrategy,Changhong Newenergyhasformulatedaclimate responsestrategycenteredongrenandlow-carbondevelopment,energyconservationandeficiencyimprovement,climateresilience andindustryleadership.Focusing on productionandoperations,productcarbonfootprint,energy structure,andsupplychain collaboration,theCompanysystematicallidentieclimate-relatedrissanddevelopmentopportunitiesdefiesshrt-,edium-nd long-term response strategies,and promotes deep integration of climate objectives with businessdevelopment.

List of Climate Change Risks and Responses

List of Climate Change Opportunities and Responses

Impact, Risk and Opportunity Management

Changhong Newenergy has established a full-process climate impact, risk and opportunity management system covering identification, assessment, monitoring, response and review. This system spans production, operations, supply chain and products, and achieves controllable risks and effective opportunity conversion through measures such as in-house carbon accounting, scenario analysis, emergency response planning, energy conservation and carbon reduction, and green power substitution, thereby continuously enhancing climate adaptability and low-carbon development capabilities.

Based on industry policies,market trends,operational realities and supply chain conditions,the Company systematicallyidentifiesand evaluatesclimatechange-relatedimpacts,risksandopportunities,andclarifies key directions and management priorities.

A normalized monitoring and response mechanism has been established.In accordance with comprehensive risk management requirements,control measures are implemented,response actions and management processes are improved,and climate-related risksare effectively controlled while development opportunities are efficiently captured.

Climate change response has been fully integrated into all aspects of the Company's operations and management. Management processes and response measures are continuously optimized in light of internal and external environmental changes,thereby enhancing the adaptability and effectiveness of climate management.

Metrics and Targets

Pollution Prevention and Control

Changhong Newenergystrictlyomplieswithelevantnational,idustryandlocallawsandregulations,arnestlyfulflsitspriary responsibilityforecologicalandenvironmentalprotection,andconsolidatesitsmanagementfoundationbyrevisingsystemssuchas theWastewater Discharge ControlManagementProceduresandWasteGasEmisionControlManagement Procedures.The Company hasestablishedacomprehensive,full-process pollutionpreventionandcontrolsystem,continuouslyincreased environmental protectininvestmentandstrengthenedsourcecontrol,processupervisionandend-of-pipetreatment.Focusingonkeypollutants suchas wastegas,wastewater,solidwasteandhazardous waste,ithasimplementedsystematicandtargetedmeasures,mproved closed-loop managementmechanismsformonitoringoperationanddisposal,effectivelypreventedandcontroledenvionmental risks,andensuredthataltpesofpolutantswerestablydischargedincompliancewithstandardsduringthereportingperiod,thereby practicing green and low-carbon development through concrete actions.

2025

● Number of environmental pollution incidents: O
Number of environmental pollution complaints from surrounding residents: O
: Number of pollutant discharge incidents exceeding standards during the year: O

● Compliance rate of major pollutant discharge: 100 % ● Compliant disposal rate of general industrial solid waste and hazardous waste: 100 %

Waste Gas Management

Systemimprovement: Continuouslyimprove the waste gas treatment system.Atotalof8 central dust removal systems, 2 volatile rganiccompounds (VOCs)treatmentsystems and2acid mist neutralization towers have been installed.Diferent treatment processes are applied depending onpolutanttypes,including high-eficiencycartridgefiltration,catalytic combustion,sprayabsorption and two-stage activated carbonadsorption,ensuring that waste gas is discharged in an organized manner after meeting emission standards.

Enhanced operation and maintenance: Strictly implement fullife-cycle operation and maintenance of waste gas treatmentfacilities,conduct regular inspectionand maintenance,andcontinuously promote ultra-lowemissionupgrades andrefined operational control.Thecentral dust removal system hasbeen upgraded tooperateinlinkage with polutiongenerating equipment,further ensuring the effectiveness of waste gas treatment facilities.

Strict source control: Strictly implement enterprise performance rating requirements for heavy pollution weather, manage vehicle emission standards through environmental accesscontrol systems,and actively exert environmental influence on relevant parties to reduce waste gas emissons atthe source.Third-party monitoring results comply with national and local emission standards and meet performance grading requirements.

Wastewater Management

Strict monitoring control: A dedicated wastewater monitoring plan has been developed. The physical and chemical laboratory conducts daily monitoring of wastewater pH and monthly monitoring of CODcr, while third-party institutions are commissioned to regularly test indicators such as pH, CODcr, suspended solids, ammonia nitrogen and total nitrogen. All pollutant concentrations meet the requirements of the Pollutant Discharge Standards for the Battery Industry.

Standardized wastewater treatment: Industrial wastewater and domestic sewage are treated separately. After meeting discharge standards through on-site wastewater treatment facilities, wastewater is discharged into the municipal industrial sewage pipeline and further treated at industrial wastewater treatment plants, achieving compliant discharge throughout the entire process.

Waste Disposal

General Industrial Solid Waste: Strengthen routine quality control by formulating waste loss plans for each process, conducting monthly statistics on waste losses, and implementing a full compensation system for excess waste. Each plant (or production section) assigns waste loss targets to specific positions, guiding all employees to develop strong awareness of strict waste control. For abnormal waste losses arising during production, timely root cause analysis and corrective actions are carried out to effectively reduce battery waste. Protection and timely disposal of waste manganese powder are strengthened to maximize recycling and reuse. All general industrial solid waste is recorded through the "Zero-Waste Sichuan" platform with electronic ledgers. All receiving entities are compliant solid waste operators registered on the platform.

Hazardous Waste Management: Dedicated hazardous waste storage facilities have been constructed, with floors treated using anti-seepage coatings and equipped with leakage diversion channels and collection pools. Ventilation systems and explosion-proof cameras are installed. Management is conducted by designated personnel under dual-lock control, with measures such as rainproofing, anti-theft and anti-leakage effectively implemented. In strict accordance with the requirements of national, provincial and municipal ecological and environmental authorities, hazardous waste storage is managed by designated personnel, with standardized labeling and signage in place, and different categories of hazardous waste stored in separate zones. Throughout the full process—including generation, storage, safe warehousing and external disposal—Internet of Things (IoT) technologies are used to enable visualized, intelligent and information-based supervision. Hazardous waste disposal and resource utilization are entrusted to qualified entities with appropriate capabilities in strict compliance with laws and regulations.

Restriction of Hazardous Substances: A product green environmental management system has been established and effectively operated to monitor and control products throughout their entire life cycle, covering incoming materials, process materials and finished products, as well as key stages such as design and development, engineering changes and inventory management. Compliance with hazardous substance restrictions is set as a prerequisite for supplier admission, with strict control to ensure products meet domestic and international requirements. Testing equipment such as XRF and ICP is deployed, and raw materials are subject to sampling tests based on risk levels, while third-party institutions are commissioned annually to conduct hazardous substance restriction testing and evaluation. Alkaline zinc-manganese batteries do not contain harmful heavy metals such as mercury, cadmium or lead and can be disposed of with household waste.

Noise Management

Process layout optimization is adopted to locate high-noise operations in areas farther from the plant boundary.

Production equipment is equipped with vibration reduction, noise reduction and sound insulation measures. Thirdparty testing institutions are commissioned quarterly to monitor daytime and nighttime environmental noise at the plant boundary. Plant boundary noise complies with the Class 3 limits under GB12348-2008.

CASE

Changhong Camelion Promotes VOCs Control in Alkaline Battery Sealing Process Through Source Reduction

Changhong Camelion implementedan environmentalyfriendlysubstitution projectforalkalinebatterysealingadhesive.In collaborationwithupstreamsuppliers,itdevelopedandadoptedsolvent-freeenvironmentallfriendlysealingadhesivestoreplace traditionalsolvent-based products,eliminatingtheemissionoforganicvolatilesubstancesatthesourceandachievinga 1 0 0 % reduction in VOC emissions for the process.The environmental performance is as follows:

Process level:

Theconcentrationoftoxicandhzardoussubstancesinthecoatingworkshopisclosetozero,eliminatingtheneedforadditioalend of-pipe treatmentfacilities and effectively reducing energy consumption and operation and maintenance costs.

Plant boundary level:

Unorganizedemissonsaresignificantlyreduced,andVOCemissonconcentrationsateplantboundaryarebettertanlocalcontrol limits for key regions.

Product level:

ProductscomplywithenvironmentaldirectivessuchasEUREACHandRoHSenancingexportcomplianceandmarketcompetitivess.

Energy and Resource Management

Governance

Changhong Newenergy has incorporated energy utilization, water resource management and the circular economy into its green production governance system in an integrated manner. It has established a normalized control mechanism featuring decision-making by the Board of Directors, overall coordination by management, leadership by the Safety and Environmental Protection Department, and coordinated implementation by multiple departments. Energy conservation and consumption reduction, water conservation and efficiency improvement, resource recycling and reuse, and the promotion of clean energy are integrated into day-to-day operations and performance assessment management. The Company strictly implements environmental compliance and work safety requirements, and recorded zero abnormal energy-related emission incidents throughout the year, thereby consolidating the foundation for green and low-carbon operations through institutionalized and standardized management.

Strategy

Guided by the ecological philosophy of "circular efficiency and green development", Changhong Newenergy advances integrated management of energy, water resources and the circular economy across four priorities: energy conservation and efficiency enhancement, substitution with clean energy, circular use of water resources, and solid waste reduction and resource recycling. It continues to optimize its energy mix, improve resource utilization efficiency, and reduce dependence on traditional energy and resources in production and operations, thereby contributing to the development of "zero-waste cities" and the achievement of carbon peaking and carbon neutrality goals.