Social Responsibility

1. Green Intelligent Manufacturing, Low-carbon Transformation - Energy Conservation and Emission Reduction: Upgrade intelligent factories, optimize the energy consumption of production processes, and aim to achieve carbon neutrality in production processes by 2030. - Circular Economy: Promote modular design in the corrugated paper packaging equipment business, with an equipment recyclability rate of 85%; encourage customers to use renewable paper materials to aid green transformation of the packaging industry.- Pollutant Discharge Permit: The parent company of Dongfang Precision has obtained the "National Pollutant Discharge Permit" and routinely completes the filling of post-permit supervision data of the "National Pollutant Discharge Permit". The company entrusts a qualified third-party environmental protection agency to formulate the "Emergency Plan for Sudden Environmental Incidents" and update it regularly; the company has established an "Environmental Self-monitoring Plan", entrusts a third party to install and operate 24-hour online sewage flow monitoring equipment, to conduct quarterly testing of wastewater, waste gas and noise, and to issue third-party test reports. The operators of the company's environmental protection equipment also conduct regular daily inspections to understand the situation of pollutants. The construction of the company's environmental protection facilities (waste gas treatment facilities, wastewater treatment facilities) has passed the certification review of the "OHSAS18001:2007 Occupational Health and Safety Management System" and the "ISO14001:2015 Environmental Management System".2. Smart Solutions Empower the Industry to Reduce Carbon - Provide global customers with an overall solution for "smart factories", and reduce customers' energy consumption by more than 20% on average through a digital control system. - In the field of marine power equipment (Parsun Power), develop low-emission outboard engines that meet the standards of international environmental protection (EPA Tier 3); promote the cleaning of waterway.

1. Employee Care and Growth - Health and Safety: The annual production safety training covers 100% of the employees, and an employee mental health support plan has been established. The company strictly complies with the relevant laws and regulations such as the Labor Law and the Labor Contract Law, focuses on the well-being of its employees, pays attention to employees' needs, and makes efforts to improve employees' working and living environments. A trade union has been established to effectively protect employees' interests. The employees are supplied accordingly with proper personal protection equipment based on the hazard factors involved with individual job type, and their personal occupational health examinations are organized and conducted (before taking up a post, in post, and before leaving a post). The company also purchases "safety and liability insurance" for those positions deemed to have higher risk factors. In 2020, Dongfang Precision was successfully reaccredited for the "Certificate of Level 2 Standardization of Work Safety for Mechanical Enterprises", and both Parsun Power and Fosber Asia were awarded the "Certificate of Level 3 Standardization of Work Safety for Mechanical Enterprises". - Talent Development: R&D personnel accounts for more than 13% of the total workforce, and a "dual-channel" promotion system is implemented; cooperate with universities to cultivate intelligent manufacturing talents in a targeted manner. The company provides employee welfare and care through holiday gifts, employee birthday parties, annual meetings and various team-building activities; conducts trainings for the employees at the company headquarter as well as its subsidiaries in China and abroad to improve their professional capabilities; commits to continuously improving a competitive, comprehensive compensation system to retain and attract the talents needed for the company's sustainable development.2. Supply Chain Responsibility - Formulated the "Green Supply Chain Management Specification" which requires core suppliers to pass the ISO 14001 certification. The proportion of green suppliers in 2024 has climbed to 65%.3. Community and Industry Contribution - Launched the public welfare project "Intelligent Manufacturing Future", providing free digital transformation consultation for small and medium-sized packaging enterprises, and benefitting more than 200 companies. - Collaborated with the industry associates in formulating energy efficiency standards for intelligent corrugated paper equipment to promote the sustainable development of the industry.

1. Improvement of the Governance System - Established a transparent information disclosure mechanism. During the reporting period, the company strictly complies with the requirements of laws and regulations such as the Company Law, the Trading Securities Legislation, and the Corporate Governance Guidelines for Listed Companies, aiming to continuously improve the corporate governance structure and to refine the internal control system. These efforts have led to the formation of a decision-making system with predominant involvement of the general meeting of shareholders, the board of directors, and the board of supervisors and management. Meanwhile the company is fulfilling, in a timely fashion, the information disclosure obligations as required by the laws and regulations, effectively protecting the rights and interests of all shareholders.2. Innovation-driven and Risk Management - Focused on key technologies such as AI and the Industrial Internet. As of the end of 2024, the company has been granted 491 authorized patents, an increase of 71 over the previous year; and has been awarded 84 authorized software copyrights, an increase of 9 over the previous year. - Enhanced data security and privacy protection system; earned the ISO 27001 certification, ensuring the information security of customers and partners.3. Business Ethics and Compliance - Dongfang Precision’s global business is conducted in compliance with the principles of the United Nations Global Compact, with anti-corruption training extended to 100% of the management; an anonymous reporting channel has been set up, and there are zero violations throughout the year. - The Group has established a complete internal authorization manual detailing the regulations on the internal authorization process of major matters to ensure appropriate internal control and to reduce the risk of fraud; to foster a fraud-free internal business environment with fairness, integrity, and trust, the company has also developed and implemented an anti-fraud information reporting platform to encourage the employees to report any fraud incidents.4. Customer and Supplier Relations - The company has long adhered to the principles of "integrity operation" and "mutual benefit and win-win", and has actively established strategic partnerships with suppliers and customers to build a platform of trust and cooperation. The company earnestly fulfills its social responsibilities to suppliers, customers and consumers, resulting in beneficial mutual contracts with suppliers and customers while ensuring the rights and interests of all parties are highly valued and properly protected.5. Social Honors - Dongfang Precision is among the nation’s high-tech innovation enterprise. The company has been successively rated as one of the "Top 500 Private Manufacturing Enterprises in China", a "Leading Enterprise in the Sub-sector in Foshan City", and a "Provincial Industrial Design Center in Guangdong Province"; its subsidiary Fosber Asia has been recognized as a "Model Enterprise of Intellectual Property Rights in Guangdong Province"; its subsidiary Wande Digital Technology has successfully been shortlisted at a national-level as a specialized, refined, and contemporary "Little Giant" enterprise. Its subsidiary Parsun Power has earned the same prestigious title as Wande Digital Technology, in addition to being named a national high-tech innovation enterprise, an Engineering Technology Research Center for Outboard Engines in Jiangsu Province, an Enterprise Technology Center of Jiangsu Province, and a leading enterprise in the small gasoline engine branch of China Internal Combustion Engine Industry Association. Parsun Power’s outboard engine products have also won the National Torch Program’s “Industrialization Model Project Certificate”, “Innovative Products of China's Machinery Industry”, “Renowned Brand Products in Jiangsu Province”, “Renowned Brand Products in Suzhou City”, and other honors.

Dongfang Precision is committed to becoming a benchmark enterprise in the global high-end equipment field. In the future, we will work hand in hand with stakeholders to jointly promote a deeper integration of industrial intelligence and sustainable development leading to a long-term value for the society.Data Scope: From January 1, 2024 to December 31, 2024, covering the global business of the Group and its holding subsidiaries.