威胜信息：2023Environmental,Social,and Governance(ESG)Report

2023Environmental, Social, and

Governance (ESG) Report

WillfarInformation Technology Co., Ltd.Website: http://www.willfar.comPhone: [phone]Address: WasionScience and Technology Park, 468 TongzipoWest Road, YueluDistrict, Changsha City, Hunan Province, China

WillfarInformation Technology Co., Ltd.

April 2024

Stock code: 688100

Report Description

Enterprises Covered by the ReportThis report encompasses WillfarInformation Technology Co., Ltd. and its principal subsidiariesReporting PeriodJanuary 1, 2023 to December 31, 2023Reporting FrequencyThis is an annual reportData SourcesData is drawn from WillfarInformation Technology Co., Ltd. and its subsidiaries, with someinformation sourced from third-party institutionsDate of Issuance of the ReportApril 26, 2024

Nouns and Pronouns used in the ReportIn this report, “WillfarInformation”, “the company”, and “we” all refer to WillfarInformation Technology Co.,Ltd.Report AccessibilityThis report is released in electronic form on the Internet and can be accessed on the website of Shanghai StockExchange (www.sse.com.cn) and the official website of WillfarInformation Technology Co., Ltd.Report BasisThis report is prepared in accordance withGlobal Reporting Initiative (GRI) Standards for Sustainable Development ReportingChina Corporate Social Responsibility Reporting Guidelines (CASS-ESG 5.0)The Shanghai Stock Exchange's Self-Regulatory Guidelines No. 14 for Listed Companies –Sustainable DevelopmentReport (Trial) (Draft for Public Comment)Feedback Mechanism

Should you have any comments or suggestions regarding this report, please reach out to us through the following meansAddress: WasionScience and Technology Park, 468 TongzipoWest Road, Yuelu District, Changsha City, HunanProvince, China Postal Code: 410205Telephone: [phone] Fax: [phone]Company website: http://www.willfar.com E-mail: [e-mail]

Governance SectionThe Company's Sustainable Development Strategy

4.1 Discussion & Analysis on the Company's Future

Development

4.2 Party and Mass Organization Building

4.3 Communication with Stakeholders

4.4 Sustainable Development Strategy

4.5 Sustainability Indicators

Corporate Governance & Sustainable Social Value

4.6 Operation of the General Meeting of Shareholders, Board of

Directors and Supervisory Board

4.7Disclosure of Information

4.8 Investor Relations Management

4.9 Business Ethics

4.10 Compliance Training

Enhancing Equality, Efficiency & Returns

4.11 Focusing on Value Creation for Continuous Substantial

Returns to Investors

4.12 Harmonizing Interests: Building a Win-Win Relationship

between Management & Shareholders

Key Performance Tables & Index

Society Section

Innovation-driven and High-quality Growth

3.1 Innovation as a Driver of Development

3.2 New Momentum for High-quality Growth

3.3 Product Quality & Safety

3.4 Sustainable Supply Chain Management

3.5 Customer Service System

3.6 Information & Data Security

3.7 Intellectual Property Protection

Caring for Employee Growth

3.8 Equal and Legal Employment

3.9 Employee Health & Safety

3.10 Employee Welfare & Caring Measures

3.11 Employee Training

3.12 Protection of Employee Rights and Interests

3.13 Employee Motivation

Social Contributions

3.14 Social Contributions & Philanthropy

3.15 Industry Collaboration & Shared Development

Environment SectionEnvironmental Protection

2.1 Climate Change Mitigation

2.2 Resource Consumption & Pollution Control

2.3 Environmental Issues & Management Overview

2.4 Biodiversity Conservation

Green Development

2.5 Green System Establishment

2.6 Eco-friendly Corporate Operations

2.7 Green Office Practices

2.8 Facilitating Low-carbon Development

Overview Section

1.1 Statement from the Board of Directors

1.2 Company Profile

1.3 Key Performance Highlights

1.4 Honors and Qualifications

Table of ContentsCONTENTS

Throughouttheyear,thecompanyhasadheredtocomplianceandefficiency,propellingitshigh-qualitygrowth.Prudentoperationandhigh-qualitydevelopmentconstituteourguidingprinciplesforbusinessexpansion.Wehaveconsistentlyupheldthecorporatetenetof"SinceritytoPerfection,HarmonyofDutyandProfit,"seamlesslyintegratingESGprinciplesintoourcorporatestrategy,majordecision-making,anddailyoperations.The"BoardStrategicCommittee"hasbeenrenamedthe"BoardStrategic&ESGCommittee,"taskedwithresearchingandproposingrecommendationsonthecompany'ssustainabledevelopment,environmental,social,andgovernance(ESG)policies.ThiscommitteealsooverseesthesupervisionandmanagementofESG-relatedmatters.Underthe"BoardStrategic&ESGCommittee,"a"SustainableDevelopmentESGWorkingGroup"hasbeenestablishedtoleadandmanageESGefforts,coordinatingrelevantbusinessdepartmentsandfunctionalunitsacrossthecompanyinexecutingESG-relatedtasks.OurGeneralMeetingofShareholders,BoardofDirectorsandSupervisoryBoardoperateefficientlyandinstrictadherencetodisclosureregulations.WillfarraisednetproceedsofRMB610millionthroughitsIPO,whichwasfullyallocatedtoR&Dinvestmentandproductionexpansion.NearlyRMB300millionwasspentonsharerepurchasesforlong-termincentiveprograms.Ourinvestmentvaluehasgarneredindustryrecognition,earningusthehighestdisclosurerating(Alevel)fromtheShanghaiStockExchange,beingnamedanExcellentBoardPracticeCasebytheChinaAssociationforPublicCompanies,andinclusionintheSSESTARMarket100Index,amongotherhonors.Thisyear,Willfariscommittedtogreenempowerment,servingthenational"DualCarbon"strategy.Thereportofthe20thNationalCongressoftheCommunistPartyofChinapointedouttheneedto"activelyandprudentlyadvancecarbonpeakingandcarbonneutralityactions",basedonChina'senergyresources,andtoimplementthecarbonpeakingactionsinaplannedandstep-by-stepmanner.LeveragingtechnologicalinnovationandR&Dadvantages,WillfarfocusesonthekeydemandsofthenationalenergydevelopmentstrategyandtheStateGrid,masteringcoretechnologiessuchasbigdatamanagement,communicationchipsandedgecomputing,andpromotinglow-carbonandzero-carbondevelopmentintheindustry.Internally,thecompanypushesforgreenoperationsthroughsmartmanufacturingandcreatinglow-carbongreenparks,adoptingplantandequipmentupgradestoeffectivelyreduceenergyconsumptionandenhancetheutilizationofcleanenergy.Externally,Willfarintensifiestechnologicalinnovationsandproductinnovationsinnewelectricpowersystemsandsmartgrids,leadstheformulationofindustrytechnicalstandards,consolidatesitsleadershipintheelectricIoTsector,andactivelyexploresnewopportunitiesinenergystructuretransformationandthedigitaleconomy,providingintelligentsolutionsforcities,enterprises,parks,andmore,servingthenational"DualCarbon"goals.Thisyear,Willfarremainstruetoitsoriginalaspirations,workingtogethertocreateabetterfuture.PresidentXiJinpinghasrepeatedlyemphasizedthatprivateenterprisesshouldactivelyparticipateinphilanthropicandcharitableactivities,rememberingtheirrootsandbalancingrighteousnessandprofit.Drivenbyinnovation,Willfarpromotescomplianceandsustainabledevelopmentinthesupplychain,fostersregionaleconomicdevelopmentthroughlawfultaxation,paysattentiontoemployeerights,anddevelopsjointlywithitsemployees.Thecompanyhasbeenhonoredasanationalmodelforharmoniouslaborrelations,anationalmodelfortrustworthybusinessoperations,andhasbeenawardedtheA-levelcreditratingforlaborprotectionforfourconsecutiveyears.Willfaractivelyfulfillstheresponsibilitiesandcommitmentsofanationalenterprise,formingvolunteerteams,participatinginsocialwelfareactivities,engagingincharitabledonations,andvisitingandcomfortingtheneedy,therebycreatingvalueforsocietyandusingtechnologytoaidruralrevitalization,promotingmutualbenefitsbetweenthecompanyandvarioussocietalsectors.Inthewaveofglobaldigitaleconomicdevelopment,underthestrategicguidanceofDigitalChina,andamidstthesteadyadvancementofthe"DualCarbon"goals,digitalizationandgreenlow-carbontransformationhavebecomeinevitabletrendsintheenergyindustry.Willfarremainscommittedtoitscorebusiness,deeplycultivatestheindustry,andstrategicallyexpandsglobally.Inthedevelopmentofenergydigitalizationandgreenlow-carbontransformation,Willfarplaysanactiveroleasbothanindustrypromoterandanenabler,continuouslycreatingvalueforthenation,investors,andcustomers.Lookingahead,wearepoisedforaction,targetinglong-termgrowth,continuouslyinnovatingandadvancing,makinggreatercontributionstogloballow-carbondevelopment,andtheprosperityofthedigitaleconomy!

Statement of the Board of Directors

2023marksthebeginningoffullyimplementingthespiritoftheParty's20thNationalCongress,apivotalyearinthe"14thFive-YearPlan",andanimportantyearforthecomprehensiveconstructionofamodernsocialistcountry.High-qualitydevelopmenthasbecomeaninevitablechoiceforlistedcompanies.Againstthebackdropofasteadilyrecoveringglobaleconomy,energytransformationhasopenedupnewmarketspaces,andthedigitaleconomyhassparkednewdemandsforurbandigitalconstruction.China's"DualCarbon"strategy,thebuildingofadigitalChina,thedevelopmentofthedigitaleconomy,theadvancementofthe"BeltandRoad"initiative,andtheacceleratedconstructionofnewenergysystemscontinuetoactivatethemomentumofnationaleconomicdevelopment.Facedwithopportunitiesandchallenges,Willfarwillcontinuetoadheretoitsdevelopmentstrategyof"ConnectingtheWorldwithIoT,ConnectingtheFuturewithCoreTechnologies",constantlystriveforward,createandcontributevalue,achievingsustainablecorporategrowth.

01-02

Company Profile

Creating Value for Shareholders

The company creates value for shareholders withsustainable competitive advantages and overallprofitability.Creating Value for UsersThe company creates value for users by providingmore accurate, reliable and intelligent systemsolutions and servicesCreating Value for EmployeesThe company creates value for employees with fair anddecent salaries and benefits and career growth.

Creating Value for SuppliersThe company creates value for suppliers through collaborative cooperation and sharedgrowth.Creating Value for SocietyThe company creates value for society through increasing tax contributions andphilanthropic activities.Creating Value for the IndustryThe company creates for the industry by continuously promoting theconstruction of energy Internet and the digitalization of comprehensive urbangovernance capacity with cutting-edge information technology and strongenergy IoT driving power.

2004-2009

2010-2014

2015-2019

2020-2023

Future Outlook

WillfarInformationTechnologyCo.,Ltd.wasestablishedin2004andisoneoftheearliestenterprisesspecializingintheenergyInternetinChina.OnJanuary21,2020,itwassuccessfullylistedontheScienceandTechnologyInnovationBoardoftheShanghaiStockExchange(StockCode:688100.SH).Withthedevelopmentstrategyof"ConnectingtheWorldwithIoT,ConnectingtheFuturewithCoreTechnologies",thecompanyprovidescomprehensiveenergyInternetsolutionsfromdataperception,communicationnetworkingtodatamanagement,constructingadigitalenergysystemthatisperceptible,observable,measurable,andcontrollableforcustomers,supportingefficientenergymanagementinvariousscenariossuchascities,parks,enterprises,buildings,waterservices,andfireprotection.Itiscommittedtoachievingthenational"DualCarbon"goals,servingtheconstructionofdigitalpowergridsanddigitalsmartcities,andjointlybuildingnewpowersystemsanddigitaltwincities.

The company will continue to benefit every city, community, business, andfamily with its products, technology, and services.

The company continued to lead in domestic market share whileexpanding into the international market, deepening and promotingurban IoT solutions.

The company became a leading provider of energy IoT solutions, focusing onthree major markets.Enterprise Development Strategy: Connecting the World with IoT, Connectingthe Future with Core TechnologiesEnterprise Mission: Sincerity to Precision, Benefit to Coexistence

The company was established and took the lead in breakingthrough domestic substitution, establishing a foothold in theIoT industry.

The company cemented its leadership position in the powerIoT industry through steady technological innovation

Development Milestones

03-04

25%Percentage of Female

Employees

15.65%

Compound Annual Growth Rate of Revenue Since

Listing

2.23 billion yuan

Operating Revenue

31.3%

Net Profit Growth Rate

Valid Patents Obtained Cumulatively

18.9%

Return on Net Assets

50.4%

Percentage of R&D

Personnel

2023

Key Performance Highlights

227 million yuan

R&D Investment

40%

Cash DividendPayout Ratio

05-06

197 million yuan

Total Annual TaxPayments

42.9%

Percentage of Female Directors,Supervisors, and Senior Executives

24.68%

Compound Annual Growth Rate of Net Profit Since

Listing

Honors and Qualifications

◆Inclusion in the SSE STAR Market ESG Index◆Inclusion in the SSE Select STAR Market Growth Momentum 50 Strategy Index◆Inclusion in the SSE STAR Market 100 Index◆Inclusion in SSE Buyback 50 Index◆Capability Maturity Model Integration (CMMI) Highest Level ML5 Certification◆National-Level Green Factory◆National Green Supply Chain Management Enterprise◆2023 Power Science and Technology Innovation Award (First Prize) -Measurement and Control System and ControlModules for Distribution Automation Terminals

◆China Instrument and Control Society Science and Technology Progress Award (Second Prize) -High-Precision DC EnergyMetering Standard Device and Traceability Techniques, and Industrial Application

◆Machinery Industry Science and Technology Award (Second Prize for Technological Progress) -Full Automation Power IoTTerminal Key Technologies and Large-Scale Applications◆State Grid Corporation Science and Technology Progress Award (First Prize) -Next-Generation Power InformationCollection System Key Technologies and Applications◆Excellent Cases for Carbon Peaking and Carbon Neutrality◆2023 Hunan Province Key Research and Development Plan Project (Intended) -Dual-Mode Communication Chip for

Electric Power Internet of Things

◆"PV Grid-Connected Intelligent Low-Voltage Circuit Breaker Project" -Outstanding Innovation Project Award, HunanInstrumentation Industry◆2023 Digital Hunan Top 10 Application Scenario Construction Plan Key Project -IoT Product Smart Manufacturing

Workshop Project Based on Industrial Internet◆Top 10 Innovative Enterprises in the First Hunan Advanced Manufacturing Technology Innovation Competition

ThecompanyhaswontheFirstPrizeofHunanProvincialScienceandTechnologyProgressAwardfortwoyearsinarow,garneredtheFirstPrizeofScientificandTechnologicalProgressfromtheChinaElectricalEngineeringSociety,receivedtheSecondPrizeofInventionPatentsinHunan,andsecuredtheFirstPrizeforScientificandTechnologicalProgressfromStateGridCorporation.Recognizedforitsstrategicdevelopment,innovativetechnologicalachievements,androbustcomprehensivestrengthderivedfromyearsofdedicationintheInternetofThings(IoT)domain,thecompanyhasbeendesignatedaNationalSpecialized,Focused,Innovative,andNovelEnterpriseandaNationalIntellectualPropertyAdvantageEnterprise.Additionally,withitsoutstandingESGperformanceandacombinationofbothgrowthcharacteristicsandmomentumeffect,ithasbeensuccessfullyincludedintwomajorindices:theSSESTARMarketESGIndexandtheSSESelectSTARMarketGrowthMomentum50StrategyIndex.

National and Group Standards

As of the end of the reporting period, the company and its R&D personnel hadparticipated in the formulation of a total of 65 national, industry, local, and groupstandards, comprising 36 national standards, 11 industry standards, one localstandard, and 17 group standards.

Scientific Research PapersIn 2023, the company focused on cutting-edge domains, conducting multiple research endeavors, and achieved notableoutcomes. During this reporting period, the company published a total of 6 scientific papers.

Channel-Spatial attention convolutionalneuralnet

learningrates for surface damagedetection of windturbineblades

works trained with adaptive"Study on the Reading Method Based on Power Line Carrier for Line Loss Lean Management in

Distribution Transformer Area"

Ground Fault Section Localization Algorithm for Active Distribution Networks Basedon Phase Transient Power DirectionShort-term Load Big Data Forecasting Scheme for the Power Industry Based onHeterogeneous Data

"Application and Practice of Wi-SUN Communication Technology in Advanced MeteringInfrastructure (AMI)"

Study on Synchronized Phasor Measurement Technology for Power Systems UsingEdge Computing

3611117

Annual Honors

Internet of things technologies

High Voltage Engineering

Annual Power Industry InformationizationConference

Digital Communication World

07-08

Measurement

LocalStandardsIndustry StandardsNational StandardsGroupStandards

China Electrical Equipment Industry

2. Environment Section

Environmental Protection

2.1 Climate Change Mitigation

2.2 Resource Consumption & Pollution Control

2.3 Environmental Issues & Management Overview

2.4 Biodiversity Conservation

Green Development

2.5 Green System Establishment

2.6 Eco-friendly Corporate Operations

2.7 Green Office Practices

2.8 Facilitating Low-Carbon Development

Climate Change Risk, Opportunity Identification,

and Financial Impact Analysis

Extreme weather events such as heavy rains, floods, and typhoons:

1.Causedamagetovariousinfrastructurefacilitieswithintheindustrialpark,leadingtodirecteconomiclossesandadditionalmaintenancecosts;reducethefunctionsandservicesprovidedbytheseinfrastructures,therebyloweringtheiranticipatedsocietalandeconomicbenefits;StrengthenBusinessContinuityManagement(BCM):ReferencinginternationalstandardISO22301,continuouslyimprovethecompany'sBCMmechanisms,enhancingresistancetorisks.Identifypotentialthreatstocriticalbusinessoperations,includingeventsandenvironmentalfactorsthatmaydisruptcompanyoperationsandfacilities,negativelyimpactingthem.Evaluateandanalyzepotentiallosses,designingaBusinessContinuityPlan(BCP)toguidebusinessrecovery.Regularlyassessdrillresultsand,ifnecessary,continuallyrefineandupdatetheplan

ThecompanyisnotclassifiedasakeyemissionsentityandhasnotbeenincludedinthegreenhousegasemissionsverificationscopebytheHunanProvincialDepartmentofEcologyandEnvironment.Thecompanyattachesimportancetothepotentialimpactsofclimatechangerisksonitsbusinessoperations,andinordertobettermanageclimate-relatedindicators,ithasconductedorganizationalgreenhousegasverificationforWillfarInformationin2023inaccordancewiththe"GuidelinesforCalculationandReportingofGreenhouseGasEmissionsforOtherIndustrialSectors(Trial)"issuedbytheGeneralOfficeoftheNationalDevelopmentandReformCommission.Concurrently,followingISO14067:2018"Greenhousegases-Carbonfootprintofproducts-Requirementsandguidelinesforquantification"andPAS2050:2011"Specificationfortheassessmentofthelifecyclegreenhousegasemissionsofgoodsandservices,"thecompanycarriedoutgreenhousegasemissionsmeasurementworkatitsproductionandoperationsitesduringthereportingperiod,providingdatasupportfortherealizationofthecompany'scarbonneutralitypathway.Duringthereportingperiod,thecompany'sgreenhousegasemissionswere3,615.16tonsofcarbondioxideequivalents.Inthefuture,thecompanywillcontinuetostrengthenmonitoringanddatamanagement,activelyengaginginthecountry'sdual-carbonmission.GreenhouseGasEmissionIndicators

Foraprolongedperiod,humanactivitiesandnaturalfactorshavejointlyinfluencedtheworld,resultinginongoingclimatechangecharacterizedprominentlybyglobalwarming.Thiswarmingtrendhastriggeredamultitudeofcascadingeffects,renderingclimatecrisesandextremeweathereventsasglobalchallenges.InJune2022,seventeendepartmentsincludingtheMinistryofEcologyandEnvironment,theNationalDevelopmentandReformCommission,andtheMinistryofScienceandTechnologyjointlyissuedthe“NationalClimateAdaptationStrategy2035”,comprehensivelyoutliningandcoordinatingadaptationmeasurestoclimatechangefortheperiodupuntil2035.WillfarInformationactivelyrespondstothe"DualCarbon"strategy,implementingactionstowardsachievingcarbonneutralityandaddressingclimatechange.Thecompanysystematicallyidentifiesandscientificallyassessesclimate-relatedrisks,evaluatingthepotentialimpactsonitsownbusiness,communities,andstakeholders.Itformulatesriskmitigationmeasuresandintegratesclimatechangeriskmanagementintothecompany'soverallriskmanagementprocess.WillfarInformationcontinuouslyenhancesitscapacitytoguardagainstclimate-relatedrisksandembedstheprinciplesofsustainabilitythroughoutallstages,includingproductdesign,R&D,production,andoperations,steadfastlypursuinggreen,high-qualitydevelopment.

Chronicclimateriskssuchaspersistentdroughtandsustainedhightemperatures:

1.Seasonalshortagesinthesupplyanddemandofenergysourceslikeelectricityandnaturalgas,potentiallyleadingto

energysupplydisruptions,whichcanimpactnormalproductionforthecompanyanditsupstreamanddownstreamsupplychains,therebycompromisingtheuninterruptedoperationofcompanybusiness

Continuouslyenhancethelevelofproductionprocessautomation,drivethetransformationofproductionprocessestobecomeincreasinglyautomated,optimizemanufacturingworkflows,andadoptautomatedanddigitalequipmenttominimizetheimpactofhumanandnaturalfactorsonproductionefficiency

2.Prolongedhightemperaturesleadtoincreasedproductioncosts.Theneedtoregulateworkplacetemperaturesresultsin

higherelectricityexpenses;persistentheatmaydecreaseworkerproductivity,raisinglaborcosts;anditaffectsnormalproductioninthecompany'supstreamsupplychain,contributingtoincreasedrawmaterialcosts

Inresponsetohightemperaturesthatmayleadtoreducedefficiencyandheatstroke,developdetailedcontingencyplansandregularlyconductdrills.Strengtheneducationandpublicityeffortsonheatstrokepreventionandfirstaidforworkers,implementingeffectivepreventivemeasuresagainstheatstress.Conductregularhealthchecksforemployeesengagedinhigh-temperaturework,adjustinglaborandrestregimesforsuchtasksasnecessarytomaintainbothworkqualityandsafeproduction,whileensuringthehealthandlifesafetyofemployees.

3.Impactupstreamanddownstreamsupplychainsandproducttransportation,causingproductiondelays

Intermsoflogisticalsupport,formulatecomprehensiveemergencyresponseplansforsevereweatherconditions,suchasthoseforheavyrainstormsandflooding.Equipoperationalsiteswithemergencypowergenerationfacilities.Routinelyorganizeemployeedrillsforrelevantemergencyscenariosandprovidespecializedtrainingonemergencyrescueprocedurestoenhancepreparednessandresponsecapabilities.

Natural gas81,264.47 m

Pollutant Emission Indicators

2023

2023

Environmental indicators

2023

Resource Consumption & Pollution ControlClimate Change Mitigation

Indicators of Resource and Energy Consumption

Countermeas

ures

Countermeas

ures

Countermeasures

Countermeas

ures

Countermeas

ures

Concentration of total suspended particulatematter in discharged wastewater

Financial IndicatorsPetroleum concentrationin discharged waterBOD5 concentration indischarged wastewater

COD concentration in discharged wastewater

Hazardous waste generation (tin slag)

Ammonia nitrogen concentration indischarged wastewater

Total phosphorus concentration in discharged wastewater

11-12

Greenhouse gas emissions

Hazardous waste recycling & utilization rate

Per million yuan of annual revenue

5,503,055.50

Emissions per unit of revenue

176,942.00

22,743.59

2023

Investment in R&DInvestment inenvironmental protection

3,615.16

mg/m

KWH

mg/Lmg/L

mg/Lmg/Lmg/L

Unit

Unit

Unit

Unit

Category

Category

Category

4.005

10.83

10,000 yuan10,000 yuan

tCO

0.14

0.28

21.4

1.62

1.72

t

%

6.3

WaterElectricity

t

2.Disruptnormalproductionandoperations,causingcontractdeliverydelays

AwarenessCultivationandPracticalDrills:Developabusinesscontinuitytrainingcurriculumtofosterawarenessandskilldevelopmentamongemployees.RegularlyorganizepracticaldrillstotesttheoperationalfeasibilityandtimecoordinationoftheBCP,enhancingemergencyresponsecapabilitiesinthefaceofdisasters

Waste and Pollutant Emission Management

Thecompanystrictlyabidesbynationallawsandregulationssuchasthe"EnergyConservationLawofthePeople'sRepublicofChina,"the"EnvironmentalProtectionLawofthePeople'sRepublicofChina,"the"AirPollutionPreventionandControlLawofthePeople'sRepublicofChina,"andthe"SolidWastePollutionPreventionandControlLawofthePeople'sRepublicofChina."

Duringtheproductionprocess,themainwastegasesgeneratedbytheproductsaretinanditscompounds,defectiveanddiscardedelectroniccomponentsproducedduringprocessing,solidwastefromouterpackagingcardboardboxes,noiseproducedbyequipmentinoperation,wastewaterandhouseholdwastegeneratedbyemployeeofficeandlivingactivities.Duringthereportingperiod,thesamplingtestresultsofthecompany'sthreewastesbyathird-partyinspectionagencywereallbelowthestandardlimitrange.Nocasesofviolationsofenvironmentallawsandregulationswerefoundduringthereportingperiod.

Willfarstrictlybidesbynationalandlocallawsandregulationsonbiodiversityprotection,putsthepracticeofbiodiversityprotectionintoallaspectsofitsbusiness,activelyprotectsthenaturalecologyandbiodiversity,andiscommittedtobuildinganecologicalcivilizationinwhichhumanbeingsandnaturecoexistinharmony.In2023,theCompanyhadnoproductionoroperationsiteslocatedinbiodiversity-richareaswithin,nearoroutsideofnaturereserves.NoneoftheCompany'sproductionandoperationalactivities,productsandserviceswasfoundtohaveasignificantimpactonbiodiversity.

Business Continuity Management

Thecompanyisnotcategorizedasahigh-energy-consumingorhigh-emissionenterprise;theprimaryresourcesandenergyconsumedduringitsproductionandoperationsarewater,electricity,andnaturalgas.Thecompanyexercisesresponsiblewateruse,relyingonasufficientsupplyfromthemunicipalwatersystemwithoutanyconcernsoversourcing.Duringthereportingperiod,thecompanystrictlyadheredtoenvironmentallawsandregulations,proactivelypromotingcleanenergyandsmartmanufacturingtoreduceenergyconsumption.Thecompanyeffectivelyutilizesrooftopspaceforphotovoltaicpowergeneration,employsadvancedintelligentmanufacturingtechniquesinitsproductionprocesses,andhasalreadyconvertedworkshoplightingtoLEDtechnology.

Thecompanyplacesgreatemphasisontheestablishmentofgreenmanufacturingandoperationalsystems,havingdevelopedcomprehensivemanagementprocedurestorigorouslycontrolenergyconsumptionduringproductionandoperations,regulatethedisposalofwastegeneratedinthecourseofbusiness,andensurecompliancewithlegalrequirements,thusminimizingthenegativeenvironmentalimpactofitsoperations.Thecompanyconsistentlystrengthenscarbonemissionmanagement,gainingacomprehensiveunderstandingofitscurrentgreenhousegasemissions,optimizingitsenergyconsumptionstructure,anddiligentlyworkingtoreducegreenhousegasemissions,therebycontinuouslycontributingtotheattainmentofthe"dualcarbon"goals.

Thecompany'swasteprimarilystemsfromtheproductionprocess,consistingmainlyoftinanditscompounds,defectiveanddiscardedelectroniccomponentsgeneratedduringprocessing,outerpackagingcardboardboxes,andwastesfromofficeactivitiesproducedbyemployees.Allwastewatergeneratedbythecompanyisdomesticsewage,withnoindustrialwastewaterproducedduringthemanufacturingprocess.Thecompanyalsogeneratesasmallamountofgreenhousegasemissionsfromelectricityandnaturalgasconsumption,productionprocesses,generatorusage,andvehicleoperations.Equipmentinoperationproducesminimalnoise.

BiodiversityProtection

Environmental Issues &Management Overview

13-14

Risk Assessment

Formulation of Business Continuity

Plan

Implementation of Business Continuity Plan

Monitoring & DrillsManagementProcess

Continuous Improvement

WillfarInformation IntelligentManufacturing WorkshopWillfarInformationhasincorporatedgreensupplychainmanagementintoitscorporatedevelopmentstrategy,implementingtop-leveldesigntopromoteenergy-efficientandlow-carbonsustainabledevelopmentindustries.Thecompanyfullyutilizesmodernenvironmentalprotectionandadvancedproductiontechnologies,activelydrivingthedevelopmentofacirculareconomyandindustry-wideenergyconservationandemissionreduction.

Thecompanyanditssubsidiariesconscientiouslyimplementlawsandregulationsrelatedtoenvironmentalprotection,suchasthe"EnvironmentalProtectionLawofthePeople'sRepublicofChina,"the"WaterPollutionPreventionandControlLawofthePeople'sRepublicofChina,"the"AirPollutionPreventionandControlLawofthePeople'sRepublicofChina,"the"EnvironmentalNoisePollutionPreventionandControlLawofthePeople'sRepublicofChina,"andthe"SolidWastePollutionPreventionandControlLawofthePeople'sRepublicofChina,"whilevoluntarilyfulfillingtheirsocialresponsibilityforecologicalandenvironmentalprotection.Thecompanystrictlyenforcesmodernenterprisemanagementsystems,establishingasystemofresponsibilitiesforsafeproduction,documentsforenvironmentalmanagementsystems,occupationalhealthmanagementsystems,financialmanagementsystems,dailymanagementsystemsforemployees,andmore.Toproperlyhandle,utilize,andeffectivelymanagethecompany'ssolidwasteandwastewater,reducingpollutantemissionsandharm,andalleviatingpollutiontotheenvironment,awastemanagementsystemhasbeenestablished.Topreventandreduceproductionaccidentsandequipmentwastagedueto"leaks,spills,anddrips,"aregularmaintenancesystemforfacilitiesandequipmenthasalsobeenputinplace.

Thecompany'swastewaterischanneledthroughmunicipalsewagepipestoatreatmentplantforunifieddischarge.Solidwasteismanagedcategorically,withwasteelectroniccomponentstreatedashazardouswasteandentrustedtocompanieswithprofessionalhandlingqualifications,whilegeneralsolidwasteishandedovertothelocalenvironmentalprotectiondepartmentforunifiedtreatment.Duringthereportingperiod,thecompanystrictlyfollowedrelevantlawsandregulationsregardingenvironmentalprotectioninobtainingdischargepermitdocuments,withthetotalquantityofeachpollutantemissionmeetingtherequirementsfortotalquantitycontrol.

EstablishmentoftheCompany'sEnergyManagementSystem

ThecompanyhasestablishedanenergymanagementsystemandsetupanEnergyManagementCenter,incorporatingenergyconsumptionmanagementintothedynamicsupervisionplatformoftheWillfarParkDataCenteratWillfar.Thisdatacenterenhancesparkmanagementefficiency,reducesgovernancecosts,anddemonstratesgovernanceeffectivenessbyintroducingdigital,intelligent,andsmartapplications.Thecompanyhasformulatedrelativelycomprehensivemedium-andlong-termdevelopmentplans,fullyadoptingmodernenvironmentalprotectionmeasuresandadvancedproductiontechnologies,vigorouslypromotingthedevelopmentofacirculareconomyandenergyconservationandemissionreductionintheelectronicequipmentmanufacturingindustry,providingthehighestqualityproductsfortheconstructionofa"resource-savingandenvironmentallyfriendlysociety,"andshoulderingthemostmission-orientedsocialresponsibility.Keytasksandmeasuresincludethepromotionofcleanproduction,thedevelopmentofwasteutilizationprojects,theadvancementofthecirculareconomy,theeliminationofoutdatedprocessesandequipment,andtheincreaseinthecomprehensiveutilizationrateof"threewastes,"ultimatelyachievinglow-carbondevelopmentfortheenterpriseandharmoniousdevelopmentforthecity.Additionally,thecompanyfocusesonthelayoutoftheelectronicmanufacturingindustry,activelyextendingtheindustrialchain.Upstream,itfostersgreensupplierstoachievehigh-qualityprocurementofrawandauxiliarymaterialsandgreendevelopment.Downstream,leveragingthecompany'sadvancedR&Dtechnology,itserveskeyindustriessuchassmartcities,smartparks,smartsecurity,andsmartwateraffairs,creatingacity-levelsmartbrain,eventuallyformingacompetitiveanddistinctiveelectronicequipmentmanufacturingindustrialparkwithintheregion.

Establishment of the Company'sEnvironmental ManagementSystemGreen System Establishment

15-16

Eco-friendly Corporate OperationsSimultaneously,thecompanyadherestogreenmanufacturingandoperations.Inrecentyears,ithascontinuouslyraisedthelevelofcleanproduction,conscientiouslyfulfillingitsobligationsforcleanproduction,carefullyformulatingcleanproductionworkplans,andimplementingcleanproductionsolutionsandmeasuresintodailyproductionandoperationmanagement,graduallyestablishingalong-termmechanismforcleanandlow-carbondevelopment.Theentireprocessofthecompany'sproduction,activities,services,andrelatedmanagementactivitieshaspassedISO14001environmentalmanagementsystemcertification.Throughtheuseofintelligentmanufacturingtechnology,thecompanyhasincreasedthecoverageofautomatedproduction,improvingbothproductionefficiencyandquality.Byimplementinggreendesignandselection,greenprocurementandgreensupplychainmanagement,greenmanufacturingandoperations,greenlogistics,greenpackaging,andgreenrecycling,significantachievementshavebeenmadeinareassuchasenergyconsumptioncontrol,energyconservationandemissionreduction,andgreenmanufacturing,withtheaimoffosteringanenvironmentallyfriendlyandresource-efficiententerprisethatadvanceseconomicandenvironmentalprogressintandem.Intransportation,thecompanyinternallyimprovesefficiencythroughintelligentgreenwarehousingandlogistics,achievingstandardizedmanagementandreal-timetraceability,storage,andshippingmanagementformaterialsthroughouttheentireprocess.Externally,itpromotesgreenlogisticsbyoptimizingtransportationmethodsandincreasingtransportefficiency,givingprioritytolow-carbonandefficientmodesoftransporttoreducecarbonemissionsduringproducttransportation.Inpackaging,thecompanystrictlyfollowsthedesignphilosophyof"compatibility,recyclability,andlifecyclemanagement,"implementingmodularandfunctionalstandarddesignsforpackaging,integratingpackagingfordifferentproducts,usingsustainablematerials,reducingthevarietyofpackagingboxes,andenhancingpackagingboxutilizationrates.

Throughvariouscarbonaccountingandevaluationanalyses,WillfarInformation,basedontheprincipleof"correctcarbonemissionscalculationaccordingtostandardspecifications,"satisfiesthefundamentalMRVprinciplesofbeingmeasurable,reportable,andverifiable.Throughnumerousenergy-savingrenovationsandtheutilizationofcleanenergy,thecompanyeffectivelyachievescarbonreduction,settinganexcellentindustrybenchmark.Theparkhasimplementedagingroomrenovations,workshoplightingenergy-savingrenovations,metertestingtableenergy-savingrenovations,watersupplysystemenergy-savingrenovations,andenergy-savingtechnicalrenovationprojects,effectivelyreducingelectricityconsumption,waterconsumption,andenergyconsumption.Theagingroomreplacesenergy-consumingequipmentwithnewenergy-savingequipment,installingatemperaturemonitoringsystemforreal-timemonitoring,andturningfansonandoffbasedontemperature;workshoplightingisreplacedwithenergy-savinglamps/LEDlamps,consumingonly40%oftheenergybeforerenovationandeffectivelyeliminatingelectricalsafetyhazardsfromexistingfluorescentlamps;20metertestingtablesareimproved,alongwithimprovementstometertestingsoftwareandprocesses.Underthesameoutputconditions,theimprovedmetertestingprocesssavesanaverageof50%energy;throughwatersupplysystemenergy-savingrenovations,awatersavingrateofnolessthan10%isachieved;implementingenergy-savingtechnicalrenovationprojectsresultsinayear-on-yeardeclineinunitproductenergyconsumption,providingmanagementandtechnicalsupportforthedeeprecoveryandefficientutilizationofsecondaryenergywithintheenterprise;thecompanyincreasinglyvaluesrenewableresourcesandcleanenergysuchasphotovoltaicpowergeneration,generating502,352.31kilowatt-hoursofphotovoltaicpowerin2023;concurrently,achievinga100%hazardouswasterecoveryrate,furtherintegratingresourceutilizationandthecirculareconomyintoenterprisedevelopment.

Green Office PracticesTakingthesynchronousdevelopmentofeconomyandenvironmentalprotectionasthepurpose,andfocusingoncreatinganenvironment-friendly,resource-savingenterprise,thecompanyimplementsvariousenergysavingandemissionreductioninitiativesintheofficearea,andencouragesemployeestobegreenandlow-carbonofficepractitioners.

Thecompanyhasadoptedmeasuressuchasimprovingprocessdesign,utilizingcleanenergyandrawmaterials,andemployingadvancedtechnologiesandequipment,therebyeffectivelycurtailingpollutionatitssource,boostingresourceutilizationefficiency,andstrengtheningenvironmentalprotection.SeveralofitsproductshaveearnedRoHScertificationandProductCarbonFootprintcertificates,demonstratingthecompany'sactivecontributiontothepursuitofcarbonpeakingandcarbonneutralitygoals.

ThecompanythoroughlyimplementstheimportantinstructionfromPresidentXiJinpingonpromotingindustrialtechnologicaltransformationandupgradingwithintelligentmanufacturingasthemainoffensivedirection,guidedbythe"14thFive-YearPlanforIntelligentManufacturingDevelopment."Combiningthelatestrequirementsandplansfromvariousprovincesandcities,ithasbuiltanintelligentmanufacturingfactory,settingabenchmarkforgreenproductionintheindustry.WillfarInformation'sintelligentmanufacturingprojectsspanmarketdemand,productresearchanddevelopment,processdesign,logistics,manufacturing,andservicesacrosstheentireproductlifecyclemanagement,significantlyenhancingproductdesign,bigdataoperations,productionprocesses,qualitycontrol,equipmentmanagement,andsafetymanagement.

Thecompanyactivelyconstructsandimprovesarecyclingsystemforusedmaterialswithintheproductmanufacturingandusageprocess,proactivelyassumingresponsibilityfortherecoveryandresourceutilizationofdiscardedproducts.Collaboratingwithprofessionalwasteproductrecyclingenterprises,thecompanyhasachievedthefullrecyclingandreuseofallwastematerialsinthemanufacturingprocess.Additionally,throughpartnershipswiththird-partyplatforms,thecompanyhasestablishedaproductionsystemencompassingmaterialcirculation,energycirculation,andwasteresourcerecycling,achievingadvancedlevelsinresourceandenergyutilizationefficiencyandpollutantemissionindicatorscomparedtodomesticcounterparts.

Energy Saving

Thecompanyimplementsa"Lightsoffwhenleaving"policyinofficeareas,setsairconditioningtemperatureto26°Candkeepsdoorsandwindowsclosedinsummer,andpostssignsadvocatingwalkingupanddownthestairsbelowthethirdfloorandturningoffthepowerwhennooneisaroundtoreduceequipmentpowerconsumptionandstandbyenergyconsumption.

Green TransportationShuttlebusservicesareprovidedtoreduceemployeedriving;theuseofpublictransportmeansandnew-energyvehiclesisencouraged,forwhichthecompanyhasinstalledchargingpiles.

Paper Saving

Willfaradvocatespaperlessoffice,promoteselectronicapprovalsandelectronicdocumentstorage,andencouragesdouble-sidedprintingtoreducepaperusage.

Water Saving

Thecompanyencouragesinternalwater-savingmeasuressuchaspostingwater-savingslogans,usingwatercupsinsteadofbottledwater,etc.

17-18

19-20

WillfarInformationboastsarobustindustrialfoundationintherealmofdigitalgrids.Leveragingitsindustryexperienceasthefoundationandinnovationasthedrivingforce,alignedwithnationalindustrialpolicyguidance,cateringtothesupply-sideneedsofthenewpowersystemsunderconstructionbyStateGridandChinaSouthernPowerGrid,aswellasthedemand-siderequirementsforsource-grid-load-storageinteractionsindigital-smartcities,thecompanymasterscoreself-developedtechnologiessuchasbigdataapplicationmanagement,communicationchips,andedgecomputing.Itprovidessolutionsfordistributionnetworksandpowerconsumers,maximizingenergyefficiency,enablingenergytobeobservable,measurable,adjustable,andcontrollable,contributingtoclients'energysecurity,reliability,andefficiency.Inthecontextofdigitalgrids,WillfarInformationhasconstructedacomprehensiveproductportfolioencompassingcorechips,keydevices,andapplicationsystems,offeringdigitalsolutionstostakeholdersacrosstheenergyvaluechain.Digitalizationconstitutesthecoreleveroftheenergyinternet,utilizingdigitalmeanstointegrateallaspectsofsource-grid-load-storage.Theinformatization,intellectualization,andinteractivityofdistributionandpowerconsumptionwillemergeasprincipaldevelopmentdirectionsforthenewpowersystem.WillfarInformationwillcapitalizeonitssubstantialtechnologicalandproductadvantagesinthedigitalgriddomain,providingcutting-edge,technologicallyadvancedsupportfordatacollection,safetymonitoring,andinformationtransmissionrequiredbymainstreamenergyenterprises.Thecompanyaimstohelpusersconserveenergy,utilizeenergysafely,efficiently,andconveniently,servingtosupportasustainable,harmonioussocietyforbothpeopleandtheenvironment,embodyingtheprinciplesof"peakcarbon"and"carbonneutrality."SeveralnewsolutionsindependentlydevelopedbyWillfarInformationalignwiththedemandsofconstructinganewpowersystemunderthe"dualcarbon"strategy,addressingvariousmarketpainpointsandprovidingfreshideasandreferencesforindustryproductinnovation.

Intherealmofdigital-smartcities,thecompanyaddressesthe"digitalcarbonneutralitymarket"acrossdomainslikesmartenergy,smartfirefighting,smartwater,andsmartelectricityconsumption.DrawinguponitsprofoundR&Dcapabilities,WillfarInformationtailorsadvancedholisticsolutionsfordigital-smartcityscenariosinwater,gas,firefighting,enterprises,andindustrialparks,deeplyresonatingwithcarbonneutralitymanagementrequirements.Currently,inthesmartwatersector,thecompanyoffersawatersupplypipelineleakagemonitoringsolution,tacklingissuessuchashighwaterlossrates,production-consumptiongaps,unclearpipelineconditions,inaccurateleaklocalization,andhighmaintenancecosts.Inthesmartparkdomain,itdevelopsanintegratedparkmanagementplatformtoeffectivelysaveenergyandreduceconsumption.Inthesmartgassector,itimplementsheatnetworkconstructionprojects,realizingfunctionslikemonitoringandautomaticbalancingofsecondarynetworks,therebyachievingenergyconservation,emissionreduction,andcost-effectiveness.WillfarInformationiscommittedtoreshapingthemanagementandefficientutilizationofelectricity,water,gas,heat,firefighting,andmunicipalservicesthroughenergyinternetsolutions,therebyassistingclientsinenhancingenergyutilizationefficiency,curbingwasteandconsumptionofenergy,andultimatelyreducingoverallcarbonemissions.

Thereporttothe20thNationalCongressoftheCommunistPartyofChinarequiredto"activelyandprudentlyadvancethecarbonpeakingandcarbonneutralitygoals.Basedonournation'senergyandresourceendowment,wewilladheretotheprincipleofestablishingfirstandbreakinglater,implementingthecarbonpeakingactionplaninaplannedandstepwisemanner."Achievingthe"carbonpeak"and"carbonneutrality"objectiveswillfundamentallyreshapeChina'sfutureproductionandlifestylepatterns,exertingfar-reachinginfluenceonthecountry'ssocio-economicdevelopment.Anelectricity-dominatedenergyapproachwillunderpintheindustrialandeconomictransformationandthesteadyimprovementofpeople'slivingstandards.Simultaneously,inthecontextofgreenandlow-carbontrends,deepde-carbonization,zero-carbontechnologies,efficientelectricityconsumptiontechnologies,renewableenergygenerationtechnologies,andvirtualpowerplanttechnologiesarebecomingfrontiersoffuturescienceandtechnology,aswellasnewcompetitivefocalpoints.

Theconvergenceoftheenergyrevolutionandthedigitalrevolutionisdrivingthedigitaltransformationofthepowergrid.Anovelenergyecosystemiswitnessingescalatinglevelsofdigitization,networking,andintelligence.Inresponsetothepressingdemandsonthepowergenerationsideforlarge-scale,high-proportionintegrationandconsumptionofnewenergysources,andonthepowerconsumptionsideforextensiveinteractivityandmobilityofdistributedenergysourcesandelectricvehicles,thisaccelerationwillfacilitatethedigitaltransformationofthepowergrid,promotecoordinatedinteractionbetweenenergysources,grids,loads,andstorage,andpropelthegrid'sevolutionintoamoreintelligentenergyInternet.

Facilitating Low-Carbon Development

EmpoweringtheNewPowerSystemforSustainableDevelopmentVirtualPowerPlantsandSource-Grid-Load-StorageMonitoring&RegulationInWillfarInformation'svirtualpowerplantsolution,advancedsensinglayersmartmeteringtechnologycapturesoperationalinformationfromdistributed"source-grid-load-storage"resources.Proprietarychips,communicationmodules,andintelligentgatewaysatthenetworklayeraggregatethisinformationanduploadittothecloudplatform.AIcomputationanalysisandloadforecastingschedulingmodulesthenissuedispatchinstructions.Thissolutioniswidelyappliedtodemand-sideadjustableresourceslikephotovoltaic-storagepowerplants,chargingandswappingstations,energyconsumptionmonitoring,andflexibleinterconnectionofdistributionsubstations.Utilizingrapid-responsecoordinationcontroltechnology,itfacilitatesthetransitionfrom"powerfollowingload"to"power-loadinteraction."

◆SmartChargingPilesAugmentVirtualPowerPlantsinSmartCityConstructionWillfarInformation'ssmartchargingpileshavebeendeeplyintegratedintomultipleapplicationscenarios,includingprojectsinGuangxi,Guizhou,theChangshaBusGroup,andtheLuguValleyConstructionGroup.Theyexhibitsignificantadvantagesinareassuchasintelligence,compatibility,featurerichness,andenergyconservation.Combiningthecompany'straditionalstrengthsininformationcommunicationanddataplatforms,thesesmartchargingpileshavebecomeacrucialcomponentofWillfarInformation'svirtualpowerplantsystemsolutions.Theyenhancetheresponsecapacityofthesysteminareaslikedistributedenergyallocation,flexiblepotentialexploitation,loadforecasting,andreal-timecoordinationcontrol,enrichingthesystem'sregulatorymodes.

IntelligentGasMonitoringSystemFortifiesGasSafety

WillfarInformation'sintelligentgasmonitoringsystemsolutionharnessesreal-timegasconcentrationmonitoringdata,allowinguserstosetcustomalertthresholdsforpreemptivewarningsbeforeactualalarmsoccur,thuspreventingpotentialincidents.Theplatformfeaturesintelligentserviceslikeannualinspectionremindersanddetectorfaultalerts,enablingmaintenancepersonneltopromptlyaddressequipmentissuesandensuresafeoperation.

21-22

◆SmartFirefightingSystemSafeguardsFinancialIndustrySecurityWillfarInformation'ssmartfirefightingsolutionintegratessmartfirefightingwithtraditionalfirefightingmethods.Leveragingadvancedtechnologiesandscenarioinnovations,itredefinesthefireprotectionarchitectureforparks,prioritizinghuman-centricdesignandcenteringonAIalgorithms,fullyintegratingcomputingpowerandAIOTcapabilitiestoprovidethenecessarycomputationaldataforfiremanagement.Empoweredbysmartbrainalgorithms,thesolutionenablesvisualized,controllable,andtraceablefiresafetymanagement,ensuringreal-time,precisefirepreventionandcontrol,andtransparentmanagement.IthasalreadybeensuccessfullyimplementedininstitutionssuchasAgriculturalBankofHunan,PostalSavingsBankofHeilongjiang,IndustrialandCommercialBankofChina,AgriculturalCommercialBankofXinjiang,andShanghaiPudongDevelopmentBank,continuouslysafeguardingthesecurityofthefinancialindustry.

Integrating Smart Water Infrastructure into IndustryEcosystems to Boost Sector Development

TheLinliHydrologicalStationandShimenHydrologicalStationupgradeprojectsconstructedbyWillfarInformationhavebeendeemedtomeetconstructionqualitystandardsandpossesscompletedocumentation.Approvalisgrantedfortheproject'scompletionacceptanceunderthecontract.Thehydrologicalstationsemployvariousflowmeasurementmethods,suchasanewlyinstalledfullyautomaticintelligentcablewaysystem,H-ADCPsystem,andmobileradarwaveautomaticflowmeasurementsystem,enablingautomaticreportingofflowsatdifferentwaterlevels.Comprehensivevideosurveillanceandexternaldisplayscreensforpromotionalpurposesfulfillremotemonitoringandmanagementrequirements.Thestationshavebeenpraisedasthe"mostbeautifulhydrologicalstations"byrelevantleaders.

23-24

One-Stop Service System for FireControlFire Safety Unit Early Warning System

Visualized fire risk factors, real-time alerts

Convenient, intelligentfire safety management

Intelligent Operation SystemService process and quality control with7*24h support

Maintenance and ServiceProvider Supervision SystemEnhanced service quality and control

Professional, efficient fire maintenancemanagement application: multi-dimensional control, maintenanceguidance, predictive maintenance, etc.Fire Data Middle PlatformHighly compatible IoT connectivity to cloud platformVarious Social UnitsVarious Social UnitsVarious Social Units...

Various SoDataCollectioncialUnits

Smart Environmental Protection IoT Sensing SystemWillfarInformation'ssmartenvironmentalprotectionsystemsoftware,combinedwithenvironmentalmonitoringIoTsensingdevices,fullyleveragesinnovative,advanced,feasible,andscalabletechnologiessuchashydrologicalmonitoring,IoTsensing,bigdataanalysis,AI-poweredintelligentmonitoring,andcloudcomputing.Thesetechnologiesareintegratedandcollaborativelyinnovated,embracingtheprinciplesofcomprehensivesensing,automatictransmission,intelligentanalysis,andfine-grainedmanagement.Theyestablishamulti-layered,three-dimensionalenvironmentalperceptionsystemfortheYanghuecosystem,avisualintelligentanalysisplatform,andanapplicationshowcasesystem,formingamulti-layered,innovativemonitoringsystem.ThissystemsupportsthecomprehensivemanagementcampaignforthewaterenvironmentinYanghu,substantivelyenhancingleanmanagementcapabilities,optimizingwaterenvironmentalqualityandaesthetics,ultimatelystrivingtowardsthegoalofa"free-flowinglake,clearwater,verdantshores,andpicturesquescenery."

UltrasonicWaterMetersDriveDigitalTransformationandUpgradingofWaterServicesinaCertainAfricanCountryWillfarInformation'snewgenerationofoverseasintelligentultrasonicwatermeterseries,tailoredspecificallytooverseasmarketdemands,representsthecompany'slatestproductlineup.Thisseriesincorporatespatentedtechnologiesrelatedtoflowrateandpipesegmentflowfielddesign,positioningitselfattheforefrontoftheindustryincriticaltechnicalattributessuchashighrangeratio,lowstart-upflow,andlowpressureloss.Thesefeaturesprovidewaterutilitieswithhighlyaccurateandcost-effectivemeteringinstruments.Leveragingpatentedstructuraldesigntechnologies,themetersofferuniquefunctionalitieslikeautomaticreportingupontampering.Asthefirstbatchofproductsuppliersforthecountry'ssmartwatermeterupgradeproject,WillfarInformationisinstrumentalincatalyzingthedigitaltransformationandmodernizationofthecountry'swaterservicessector.。

DCU Driving Upgrade and Development of Bangladesh's Power Infrastructure

WillfarInformationprovidesHES,MDMS,CIS,andBillingsystemstoElectricitéduLaos(EDL),thenationalpowercompanyofLaos.ThisprojectcomprehensivelyupgradesEDL'sexistingAMIsystem,enhancingitsintelligentmanagementcapabilities,layingthegroundworkforthesubsequentcomprehensivetransformationof1.6millionhouseholds,andwillalsodrivetheintelligenttransformationofotherenergymanagementsectorsinLaos,suchaswaterutilities.

Collaborating on Global Energy Transformation for a Shared Planet

25-26

Innovation-driven and High-Quality Growth

Caring for EmployeeGrowth

Social Contributions

3.1 Innovation as a Driver of

Development

3.8 Equal and Legal Employment

3.14 Social Contributions &

Philanthropy

3.2 New Momentum for High-

Quality Growth

3.9 Employee Health & Safety3.15 Industry Collaboration &

Shared Development

3.3 Product Quality & Safety

3.10 Employee Welfare & Caring

Measures

3.4 Sustainable Supply Chain

Management

3.11 Employee Training

3.5 Customer Service System

and Interests

3.6 Information & Data Security

3.13 Employee Motivation

3.7 Intellectual Property Protection

3. Society Section

InnovationasaDriverofDevelopmentInnovationisWillfar'sDNA,anddevelopmentisitsrelentlesspursuit.Asthecoredrivingforceofgrowth,thecompanydelvesdeeplyintotheEnergyInternetofThings,cultivatingthe"humancapital,scienceandtechnology,andbigdata"triadofnewelementstobolsteritssoftpower,steadilyconsolidatingitsdevelopmentfoundation,andcontinuallybroadeningitsprotectivemoatforgrowth.Throughtechnologicalinnovation,thecompanyenhancesdevelopmentquality,shapesnewmomentum,andestablishesnewadvantages.In2023,thecompany'sR&Dinvestmentamountedto227,435,900yuan,accountingfor10.22%ofoperatingrevenue,registeringayear-on-yearincreaseof14.57%.Thecompanyhad409R&Dpersonnel,constituting50.4%oftheworkforce.

Initspursuitoftechnologicaladvancement,thecompanystrictlyadherestolawsandregulationssuchasthePatentLawofthePeople'sRepublicofChina,theTrademarkLawofthePeople'sRepublicofChina,andtheCopyrightLawofthePeople'sRepublicofChina.GuidedbythenationalstandardGB/T29490—EnterpriseIntellectualPropertyManagementSpecification,itmanagesintellectualproperty-relatedmatters.In2023,thecompanyadded64patents,including29inventionpatents,and48softwarecopyrights.Cumulatively,thecompanyholds707validpatentauthorizations(149ofwhichareinventionpatents),898softwarecopyrights,and6rightstointegratedcircuitlayoutdesigns.Regardingnationalandgroupstandards,bytheendofthereportingperiod,thecompanyanditsR&Dstaffhadparticipatedintheformulationof65national,industry,local,andgroupstandards,including36nationalstandards,11industrystandards,1localstandard,and17groupstandards.

DeepeningIntegrationofProduction,Education,andResearchtoFacilitateKeyTechnologicalBreakthroughsandSupportDualCarbonGoals

In2023,thecompanycontinuedtovigorouslypromotethein-depthintegrationanddevelopmentofproduction,education,andresearch,poolinghigh-endintellectualresources,facilitatingthesharingofresearchoutputs,andencouragingvariousinnovativeelementstoconvergewithintheenterprise.Thisfostersdeepintegrationofproduction,education,research,andapplication.Currently,thecompanyhasinitiatedcooperationprojectswithnational-levelnew-typeresearchinstitutionsandZhejiangUniversity,gearedtowardstheconstructionofanewpowersystem.Addressingthedemandsofintelligentpowerdistributionandutilizationscenarios,theyaredevelopingdedicatedchipsandintelligentterminalsforpowerdistributionandutilization,supportingthecomprehensive,preciseperception,on-siteinformationprocessing,intelligentdecision-making,andsafe,efficientoperationofsmartpowerdistributionnetworks.Concurrently,thecompanywillcollaboratewithmultipleuniversitiesonkeytechnologicalbreakthroughsinactivedistributionnetworkgroundfaultprotection,enhancingthesafetyofactivedistributionnetworkoperations,ensuringthesecureconnectionandreliableoperationoflarge-scaledistributedpowersources,therebycontributingtotherealizationofthenationaldualcarbonstrategictargets.

DeepeningChipStrategy:ChipsareoneofWillfarInformation'skeyR&Ddirectionstailoredtocurrentgridcommunicationtechnologyneeds.In2023,thecompanyachievednotablesuccessesinthechipfield,includingtheFirstPrizeofChinaElectricPowerScienceandTechnologyAward.BuildinguponthelaunchofanewgenerationofHPLC+HRFdual-modecommunicationchipmodulesandmodulesin2023,thecompanywillcontinuetoincreaseinvestmentinchipandcommunicationmoduleR&D,furtherfocusingonoptimizingkeytechnologiesandcommunicationmodulesofWi-SUNlocalroutingmeshnetwork.Thiswilladdressthetimelyandefficientremotecollectionandanalysisofdata,enablingbidirectionalinteractionbetweenenergyflowsanddatastreams,aimingtobecomealeadingsupplierofAMI(AdvancedMeteringInfrastructure)solutionsininternationalmarkets.

FocusingonThreeKeyAreasofR&DtoEmpowerSmartGridsandSmartCitiesIn2023,againstthebackdropofglobaldigitalsmartcityconstructionandgreendevelopment,WillfarInformationcontinuestoalignwiththeStateGrid'srequirementforthecontinuedstrengtheningofsmart,strongdigitalgridsandtheSouthernGrid'splanforthebalancedupgradingoftraditionalgridsalongsidethedeepeningofdigitalempowerment.Itseizesopportunitiesinglobaldigitalsmartcitydevelopmentandgreenstrategies,concentratingitsR&Deffortsonthreekeyareastoexpeditetheconversionofinnovativeoutcomes.

InnovativeDevelopmentofIoTApplicationLayerSoftwareSystemsandPlatforms:Asthedrivingforcebehindtechnologicalinnovation,softwarerepresentsthecompany'scoretechnicalcapability,rapidlyevolvingtowardsnetworked,platform-based,andintelligentdirections.Inthefuture,thecompanywillprioritizeincreasedinvestmentinIoTapplicationlayersoftwaresystemsandplatforms,targetingtheglobalmarketandfocusingonservingthedigitalmanagementneedsofcustomersinareaslikesmartgrids,intelligentfirefighting,andintelligentwaterresourcesmanagementunderthedualcarbonrequirements,helpingthemachievecostsavingsandefficiencyenhancementsthroughdigitalization.

R&DofEmergingTechnologies:

WillfarInformationwillfocusonstrengtheningthedevelopmentofkeyartificialintelligence(AI)technologiessuchasbigdataanalytics,edgecomputing,andtopologyrecognition,deeplyintegratingthemintothebusinessprocessesofsmartgridsandsmartcities.Byupdatingandupgradingintelligentalgorithmsfortasksliketopologyidentification,loadforecasting,andvisualmonitoring,thecompanywillcontributetotheconstructionofanewpowersystem.

软件著作权

合计1121611

本期新增

外观设计专利6243

发明专利29149

The Company Intellectual Property in 2023

29-30

实用新型专利

累计数量类别

其它

CategoryNew Additions in 2023Cumulative TotalInvention Patents29149Utility Model Patents29315

Design Patents6243Software Copyrights48898

Others06

Total1121611

30 ProvincialPower GridCompanies

Over 250Local PowerCompanies

Morethan

Hundred

Million

Connections

Power

IoT

DevicesNine RegionalSales Centersand 30ProvincialOffices

2,800 County-Level PowerCompanies

PersistentandActivePursuitof"ImprovingQualityandEnhancingEfficiency"toConsolidatethePathofHigh-QualityDevelopmentIntermsofoperationalqualityimprovement,thecompany,guidedbythethemeof"steadyprogressandinnovativedevelopment,"adherestotheprincipleofincreasingrevenuewhilecontrollingexpenses,implementingthe"ThreeIncreasesandThreeReductions":increasingcontracts,increasingcollections,andincreasingmarketshare;eliminatingwaste,badreceivables,andinventorywithpotentialobsolescencerisks.Regardingriskpreventionandperformanceenhancement,riskpreventionisgiventoppriority,withtheaimofconsistentlyimprovingprofitqualityandensuringthateverypennyofrevenuestemsfromhealthybusinessoperations.Additionally,thecompanyseeksefficiencyandbenefitsfrommanagement,practicingthe"addition,subtraction,multiplication,anddivision"ofoperations,focusingon"improvingqualityandenhancingefficiency,"strikingabalance,prioritizingkeyareas,makingwell-informeddecisions,andfullyactivatingnewdriversforhigh-qualitydevelopment.

Intermsofrevenueenhancement,first,thecompanyconductsin-depthanalysesofdomesticandinternationalpolitical-economicsituationsandmarketopportunities,capitalizingonexistingmarketswhileactivelypushingfortheexplorationofemergingmarkets.Second,inprojectexecutionanddelivery,thecompanyensuresallprojectsarecompletedontime,withhighquality,andefficiency,deliveringexcellentservices.Third,intechnologicalinnovationandapplication,thecompanycontinuouslyinvestsinresearchanddevelopment,integrationinnovation,enhancingthecompetitivenessofitsIoT-connectedsolutionsforthefuture,proactivelyrespondingtoglobalgreendevelopmentpolicies,andcontributingthestrengthofWillfartotherealizationofChina'snewpowersystem,smartcities,andcarbonneutralitygoals.

New-QualityProductivityOutputandInternationalCooperation

WillfarInformationboastsawealthofscientifictalentandinnovativeresourcesunderpinningthedevelopmentandapplicationofnewtechnologies.Moreover,withasolidfoundationinthemanufacturingofdistributionandutilizationequipmentandIoTdevices,thecompanypossessesacomprehensiveproductionsystemandsupplychainnetwork,enablingittoswiftlyrespondtomarketdemandsandmass-producehigh-quality,technologicallyadvancedproducts.Regardingtheinternationaloutputofnew-qualityproductivity,WillfarInformationhasplannedmultipleinvestmentsinoverseassmartfactoriesandisconcurrentlynegotiatingcapacitybuildingsolutionexportprojectswithmultiplepartners.Leveragingtechnologiessuchasautomatedproductionsystems,cloudservices,bigdataanalytics,andAIalgorithms,itprovidessmartfactoryconstructionsolutionsinvariousequipmentmanufacturingfields,includingwatermeteringdevices,energyefficiencymanagementequipment,communicationmodulesandcommunicationdevices,anddistributionnetworkequipment.BycombiningWillfarInformation'stalentresourcesandsupplychainnetwork,theseinitiativesfacilitatedigitaltransformationandinnovativedevelopmentforbothself-builtandcollaborativefactories,drivingglobalmarketexpansion,productandtechnologycollaboration,andcapacitycooperationformutual,win-windevelopment.

Full-ScalePromotionofInternationalizationtoActivateNewDriversforHigh-QualityDevelopment

Inthecontextofdigitalizationandintelligence,thecompanywillcloselyfollowindustrytrendsandkeenlyunderstandcustomerneeds,dedicatedtoprovidingclientswithexceptionalsystemsolutionsandhigh-qualityservices.Whilecontinuouslydeepeningitspresenceinthesmartgriddomain,itwillalsoexpandintosmartcities,overseasmarkets,andthechipsector.

Thecompanyisfullyandswiftlyadvancinginternational"threetransformations"–intermsofinternationalizedmarketthinking,institutionalstructures,andmanagementteams–implementingstrategicshifts.Accordingtomarketdemands,thecompanywilltransformfromapureexportmodeltoonefeaturinglocalizedproductionandsalesoverseas,broadeningitsglobalmarketcoverage,gainingdeeperinsightsintolocalmarketdemands,enhancingbrandinfluenceinlocalmarkets,andnurturingaprofessionalteamwithinternationalperspectivesandcross-culturalcommunicationskills,therebyboostingcompetitivenessininternationalmarketsandactivatingnewdriversforthecompany'shigh-qualitydevelopment.

Intoday'srapidlychangingmarketenvironment,thecompanyisacutelyawarethat"improvingqualityandenhancingefficiency"isnotonlyasurvivalstrategybutalsothefoundationforgrowth.ThisyearmarksacriticaljunctureinWillfarInformation'sFive-YearPlan,aswellasayearofdeepeningitsinternationalization.Althoughtheworld'spoliticalandeconomiclandscapeandgrowthdynamicsrenderthecomingyearuncertain,thetrendtowardsseekingopportunitiesamidstrisks,pursuingdevelopment,andfosteringpeaceremainsunchanged.Environmentalprotectionandthedualcarbongoalsremainintegraltotheshareddestinyofhumanity.Amidstsuchatransformativeera,thecompanyfirmlybelievesthatthekeytonavigatingexternaluncertaintiesliesin"strengtheningoneself,"relyingoninternalcertainty.

New Momentum for High-Quality Growth

31-32

Product quantitative information

632,400 yuan

4,052 person-times

108 hours

3times

33-34

Product Quality & SafetyActivelypromotingthe"LeanProduction"modelandtheoptimizationoftestingprocesseswitha"4-in-1"approach,thecompanycontinuouslyimprovesenergy-savingandemission-reductionmeasuresintheproductionprocess.AsaleadingproviderofEnergyInternetofThingssolutionsinChina,thecompanyactivelycontributestothedevelopmentoftheGlobalEnergyInternet,promotingsmartgridanddigital-smartcitydevelopmentthroughcleanandgreenmeans.

Foralongtime,thecompanyhasthoroughlyimplementedtheguidingprincipleof"SafetyFirst,Prevention-Oriented,andPreemptiveTreatmentIntegrated,"establishingaseriesofmeticuloussafetyproductionsystems,includingtheComplianceObligationControlProcedure,EmergencyPreparednessandResponseControlProcedure,ComplianceEvaluationControlProcedure,andEnvironmentalandOccupationalHealthOperationManagementControlProcedure.Potentialsafetyhazardsareidentified,subjectedtoregularinspectionsandmaintenance,andthecompanyrequiresitsdirectors,supervisors,seniorexecutives,andmanagersatalllevelstoleadbyexampleinadheringtosafetycodes,overseeingeachothertorigorouslyenforcesafetypractices.Thecompanyhasestablishedaproducttraceabilitysystem,trackingproductsthroughouttheentireprocess,providingqualityassurancetocustomers.Incaseofdefectsorqualityissues,arecallcanbepromptlyinitiated.ThecompanystrictlyabidesbylawsandregulationssuchastheProductionSafetyLawofthePeople'sRepublicofChina,theProductQualityLawofthePeople'sRepublicofChina,andtheTrademarkLawofthePeople'sRepublicofChina.Duringthereportingperiod,noproductrecallwastriggeredduetosafetyandhealthreasons,norwereanycasesdiscoveredwherethecompanyviolatedlawsandregulationsrelatedtoproductandservicequality.

Onthepathofcontinuousinnovationandcapacitybuildingforqualityassurance,thecompanyexploresandpractices,creatingtheWQM(WillfarQuantityManagement)digitalqualitymanagementplatformbasedontheconceptof"OneCore,TwoWings,andThreeIntegrations."ThecorereferstoacomprehensivequalitymanagementphilosophyandIPDresearchanddevelopmentsystemarchitecture.ThetwowingsconsistofanoperationalproductionqualitymanagementplatformbuiltonCRM+ERP+MESandasupplierqualitymanagementplatformbasedonSRM.Ultimately,theplatformachievesthreeintegrations:seamlessqualitymanagementfromdemandtoacceptance,fusionofdecision-makingprocesseswithoperationaldata,andintegrationofproblemretrospectionwithclosed-loopmanagement.ThroughtheimplementationoftheWQMplatform,WillfarInformationhasachievedaqualitativeleapinitsqualitymanagementlevelandservicecapabilities,resultinginsubstantialenhancementsacrossoperatingperformance,customersatisfaction,andbrandbenefits.

◆Product Quality Inspection Process

Product Recall Procedure

Product Service Certificate

Number ofParticipantsin EmergencyDrillsProductionEmergencyDrillsInvestment inWork Safety

CustomerSatisfactionProductQualificationRateTrainingDurationProductionTraining

99.75%99.93%

Flowchart of Product Quality Inspection ProcessMonitoring and Measurementof Processes and Semi-Finished Products

First Piece on theProduction Line

Initial

InspectionSpecializedInspection

MutualInspection

PatrolInspection

Judgment"Procedure for Control ofNonconforming Products" and"Management Regulations forHandling Product Anomaly Events"

NextProcess

Monitoring andMeasurement ofFinished Products

In-line Finished

ProductsFunctionalInspection

PerformanceTesting

JudgmentWarehousing

"Procedure for Control ofNonconforming Products" and"Management Regulations forHandling Product Anomaly Events"Final RandomInspection Prior to

ShipmentJudgmentDelivery

Timing for Potential Recall ofAlready Delivered Products to

CustomersInformation Collection & Analysis

on DefectsDefectInvestigationFormulation of Recall Plan& Determination of Recall

ScopeIssuance of Recall Notice

& Implementation of

Recall

Handling & Root Cause

Analysis of Recalled

ProductsCorrective & PreventiveActions and Assessment of

Treatment Effectiveness

Recall Summary &Record Control

The end

Number ofProduction

Accidents

WillfarInformationhasincorporatedgreensupplychainmanagementintoitscorporatestrategy,institutingtop-leveldesignforgreenSCMwiththeobjectiveofdrivingenergy-efficient,low-carbon,andsustainableindustries.Thecompanyuniversallyappliescontemporaryenvironmentalprotectionmethodsandadvancedmanufacturingtechnologies,vigorouslypromotingcirculareconomyandwide-rangingenergyconservationandemissionsreduction,thusprovidingpremium-qualityproductsforthecreationofa"resource-efficientandenvironmentallyfriendlysociety,"assumingitsmostmission-centricsocialresponsibilities

WillfarInformationwillpersistentlyembedthephilosophyof"greendevelopment,"consistentlyrefiningitsgreensupplychainmanagementframework,expeditingthedevelopmentandservicedeploymentofhigh-tech,high-value-addedproductscharacterizedby"greentechnology,intelligentenvironmentalprotection,anddependableefficiency."Itwillstreamlineproductstructure,elevateproductquality,institutearesourcerecyclingsystemthroughouttheentirevaluechain,andsetaparadigmaticbenchmarkforlow-carbon,greendevelopmentwithintheindustry.Concurrently,thecompanywillpivotaroundtheconvergenceofenergystreamsandinformationflows,devisingholisticsolutionsorientedtowardcarbonneutrality,facilitatinggovernments,businesses,industrialparks,andotherclienteleinembracingcarbon-neutralactions,andcollectivelyengaginginandpropellingChina'scarbonneutralitytargets.

Sustainable Supply Chain ManagementThecompanyhasestablishedacomprehensivesupplierevaluationsystem.First,basedoninformationfromdomesticandinternationalsourcesaswellasmajormanufacturerswithintheindustry,pre-qualificationscreeningisconductedtoidentifypreliminarysuppliercandidates.Subsequently,ajointassessmentiscarriedoutbyR&Dandqualitypersonnelfromrespectivebusinessdivisions,encompassingthesupplier'squalitymanagementsystem,technicalcapabilities,corporatereputation,productquality,indicativepricing,andcommercialterms.FollowingtheSupplierManagementRegulationsandthedetailedsupplierevaluationcriteria,onlythosesuppliersachievingtherequiredcompositescoremayproceed,atwhichpointtheyarerequestedtocompletea'SupplierIntroductionApplicationForm',whichuponapprovalbytheManagementRepresentativeisenteredintothesystem.Uponestablishingapartnership,thecompanyconductsrandominspectionsoneachbatchofproductsdeliveredbysuppliers.Intheeventofqualityissues,theQualityDepartmentshallissuea'NotificationofNonconformingProduct'tothesupplier,whomustpromptlyrespondwithcorrectivemeasures.TheQualityDepartmentthenverifiestheclosureoftheseimprovements.Shouldseriousqualityproblemsarise,a'QualityAlertNotice'isissued,anddependingontheseverity,a'QualityBlacklist'mayalsobedispatched.Inresponse,theProcurementDepartmentwouldsuspendthesupplier'squalificationsandceaseplacingordersbasedontheblacklistissuedbytheQualityDepartment.Moreover,theProcurementDepartmentconductsperformanceevaluationsofsupplierswhohavedeliveredfiveormorebatcheswithinahalf-yearperiod,withassessmentcriteriaencompassingtechnicalexpertise,quality,deliverytimeliness,pricing,andservicequality.SuppliersachievinganA-gradeintheevaluationaregivenpriorityconsiderationfororders,whilethosereceivingaD-gradeundergorectificationorpotentialelimination.

Initsdealingswithlarge,medium,andsmall-scalesuppliersandclientsalike,thecompanyconsistentlyupholdstheprincipleofequalityandfairness.Byensuringtherearenoinstancesofoverduepaymentsduringthereportingperiod,itfostersamoresustainablesupplychainecosystem.

Customer Service System

Customer SatisfactionThecompanyhasputinplacethe'ManagementRegulationsforHandling&ClosingCustomerComplaintsRegardingProductQuality.'In2023,customersatisfactionreached99.75%.Afterreceivingcustomerfeedback,thetechnicalservicedepartmenttakesover,confirmingthefaultphenomenon.Ifthefaultisverified,departmentssuchasR&D,engineering,andqualityconductrootcauseanalysis,formulatingaresolutionplaninvolvingproductrepairorreplacementtoeliminatethefault.Internally,long-termimprovementmeasuresaredevelopedinresponsetotheissuetopreventsimilaroccurrencesinthefuture.

Technical Service Response

WillfarInformation places great importance on customer feedback and requirements, establishing a rapid technical service responsesystem with the service policy of "Prioritizing customers' urgency, anticipating their needs, and continuously enhancing servicevaluethrough professional expertise!" The company remains steadfastly customer-centered, providing prompt, professional, and efficient supportand services. Nationwide, it maintains 36 service branches staffed with dedicated technicians on a 24-hour rotation, ensuringcomprehensive pre-sales, mid-sales, and post-sales services to meet client demands.

Diversified Service ModelsOffline: Building a global service network to enhance customer experience through localized services, enabling in-depthunderstanding of customer needsOnline: Establishing a network technical service center for real-time remote communication and one-stop services, offeringscientific solutions to customers

Integration and Interaction of Online and Offline Channels: Providing efficient and intelligent services

Continuous Improvement MechanismServiceprocessesaredigitally,informativelyanddynamicallymanaged,withmarketinformationcollectedandanalyzed,customerfeedbackimplementedinaclosed-loopmanner,andexperiencecompiledintoaknowledgebase,therebydrivingcontinuousimprovementandinnovationofthecompany'sproductsandservices.

Coremeasuresinvolvetheformationofgreenintelligentfactories,endorsementofcleanproduction,initiationofwasteutilizationprojects,advancementofthecirculareconomy,andassemblyofanenergymanagementsystemplatform.Simultaneously,WillfarInformationwillstrategicallypositionandextenditselfwithintheelectronicmanufacturingindustry'svaluechain,proactivelynurturinggreensuppliersupstreamtoassurehigh-quality,eco-friendlyrawmaterialprocurement.Downstream,leveragingthecompany'sstate-of-the-artR&Dcompetencies,itwillcatertopivotalsectorslikesmartmunicipalgovernance,smartindustrialparks,smartsecurity,andsmartwatermanagement,collaborativelyerectingcity-scaleintelligentcontrolsystems,ultimatelyactualizingthecompany'slow-carbondevelopmentinconsonancewithurbandevelopment.

Inpursuitoftheoverarchingobjectivesofagreensupplychain,WillfarInformationfocusesonenhancingenergyefficiencyandmanagingcarbonemissionsacrossvariousstages,encompassinggreenproductdesign,eco-consciousrawmaterialacquisition,greenfactorymanufacturing,environmentallysoundcorporateoperations,greenpackaging,andproductrecycling.

Customer Problem Resolution Process

35-36

Network Technical Service CenterTechnical Solutions, Technical Documentation, FAQs, etc.

7*24 Hour Free Service Hotline

Remote Telephone Support

Service Requests

Work OrderConfirmation

On-site ServiceService EvaluationEstablishmentofstandardizedservicemanagementprocessesandlocalon-sitesupportthroughbranchoffices

Thecompanyscrupulouslyadherestolawsandregulationsrelatedtopersonalinformationanddatasecurity,includingthe'PersonalInformationProtectionLawofthePeople'sRepublicofChina,'the'CybersecurityLawofthePeople'sRepublicofChina,'the'DataSecurityLawofthePeople'sRepublicofChina,'andthe'ConsumerRightsandInterestsProtectionLawofthePeople'sRepublicofChina.'Itconsistentlycarriesoutpublicityandeducationalactivitiesonconfidentialknowledge,rigorouslyimplementingthesigningofconfidentialitycommitmentlettersbyallemployees,strengtheningconfidentialityawareness,reinforcingconfidentialityresponsibilities,cultivatingconfidentialityhabits,andenhancingemployees'voluntaryadherencetoconfidentialityintheirdailyworkandbusinessactivities,ensuringstrictobservanceoflegalprovisionsandcompliancesystems.Thecompanysignificantlyinvestsinconstruction,enhancingitstechnologicalcapabilitytosafeguardinformationsecurity,fortifyingtechnicalmeanstoconstructacontrollabledataandnetworksecurityhardwareandsoftwaredefensesystem.Itemploysmeasuressuchasdataencryption,accesscontrolandauditlogging,identityauthentication,andaccesscontroltoensureclientinformationsecurity.Thecompanystrengthenssupervisionoverinformationsecurityandcybersecurity,ensuringtheeffectiveimplementationofclientinformationsecuritysafeguards.Annually,itundergoesthird-partyreviewand,inlinewithregulatoryrequirementsandinternalmanagementguidelines,conductsunscheduledspecialself-inspectionsofnetworkanddatasecurity.Theinspectioncontentprimarilyincludes:accessmanagement,dataclassificationandgrading,datasecurity,databackup,datadestruction,informationsecurity,andprivacyprotection.Duringthereportingperiod,noeventsinvolvingdatasecuritybreachesorclientprivacyleaksoccurred.

Thecompanyadherestoadual-trackapproach

of

"Technology+Mechanisms,"erectinganimpenetrablefirewallforinformationsecurity,rigorously

safeguarding

theinformationsecurityofclients,users,suppliers,andindustrychainpartners,andeliminatingthepossibility

of

informationorprivacyleaks.Ononehand,ithasestablishedasystemsecurityprotectionframeworkforinformationsystems,relyingonproprietarytechnologiestocontinuallydriveproduct,operationalsystem,andmanagementsystemsecurityupgrades,softwareupdates,andbycollaboratingwithrenownedinformation

security

companies,continuouslyenhancesthelevelof

information

securityprotection.Ontheotherhand,it

continually

refinesinternalmanagementmechanisms,

signing

'InformationSecurityConfidentialityAgreements'withrelevantpersonnel,andreinforcingthecultivation

of

employeeresponsibilityandprofessionalethics.

It

implementsmultiplemeasurestostrengthen

oversight,

safeguardinginformationsecurityandpreventingthedisclosureofclient,user,supplier,andindustrychainpartnerinformationandprivacytothirdparties.Intheeventofpotentialsecurityattacksorinternalviolations,oncedetected,theyareimmediatelyreportedto

law

enforcementauthorities.Noinformationleak

incidents

wererecordedduringthereportingperiod.

Intellectual Property ProtectionIntellectual property is one of the company's most critical assets. The company strictly abides by relevant laws andregulations, respecting the intellectual property rights of clients and suppliers. It has formulated the 'Regulations onIntellectual Property Management' to regulate its own IP management work, establishing a comprehensive intellectualproperty secrecy system and associated record management system, clearly defining aspects such as employeeconfidentiality, non-compete restrictions, confidentiality rewards and penalties, and archival management. The companyenters into 'Confidentiality Agreements' with employees, instituting constraints through formal procedures to prevent theleakage or loss of IP information. Furthermore, it conducts IP education and training for employees, engaging in IPawareness-raising campaigns, sharing experiences, and enhancing employees' understanding of IP protection. Concurrently,the company actively promotes IP protection within the industry, striving to foster self-regulatory norms and participating inthe formulation of industry standards to reinforce IP protection.

Information & Data SecurityInaccordancewithISO/IEC27001:2022,"Informationsecurity,cybersecurityandprivacyprotection—Informationsecuritymanagementsystems—Requirements,"thecompanycontinuouslyrefinesandoptimizesinformationsecurityandprivacyprotection-relatedmanagementsystems.Integratingthesemanagementrequirementsintoprimarybusinessprocesses,ithasestablishedacomprehensivecustomerdatasecuritymanagementsystem.Throughmultiplelayersofcustomerdataprivacyprotectionmechanisms,iteffectivelypreventsincidentsofdatainsecurityorleakageofcustomerprivacy.

37-38

Employee Health and SafetyWillfarproactively addresses workplace safety by continuously enhancing safety awareness among its employees, particularly at the grassroots level. Thecompany invests in extensive safety training and skill enhancement to foster an environment where all employees are actively engaged in safety management.This commitment has led to the formation of a model team distinguished by its robust safety consciousness, strong operationalskills, and high efficiency. Willfarprioritizes the preemptive management of safety risks, achieving zero work-related fatalities and zero days lost due to workplace injuries over the past threeyears. Furthermore, no violations of health and safety regulations were recorded during the reporting period.Willfarhas established a staff assistance fund to support employees facing personal hardships and has also created an Innovation andEntrepreneurshipFund to encourage employees to engage in innovative and entrepreneurial activities. Additionally, the company provides complimentary accommodations andaccess to sports and recreational facilities, including a soccer field, basketball courts, badminton courts, a gym, and a library, all aimed at enhancing physicalhealth and providing relaxation opportunities outside of work. Willfarplaces a high emphasis on employee health, offering free annual health checks andstrengthening health management practices to ensure the well-being and safety of all staff. The company rigorously identifies and addresses potential hazards,conducts emergency drills, and promotes safety training and cultural activities, which have led to its recognition as an outstanding unit for safe production andfire safety in the Changsha High-Tech Zone.

In each of the past three years (including 2023), the number of work-related deaths was zero, the number of working days lost due to work-related injurieswas zero, and no violation of laws and regulations relating to workplace health and safety was found during the reporting period.

Equal and Legal Employment

The company adheres to equal and legal employment, protects the legal rights and interests of employees, eliminates discrimination due to religion,gender, age, marital status, disability, sexual orientation and other factors, and strictly protects employees' personal information and privacy. The companyintroduces a large number of excellent and highly educated talents every year. Our management team and core technology team include members of industryassociations and standardization committees, most of whom have been working with the company since its inception, with many years of IoT industrytechnology and management experience, so that the company's technology R&D and business strategies are in line with the direction of industry development.

Health Check-upRate

persons100%100%

812

100%

Employee Growth and Development

Age structure of R&D staff

Employee composition

100% 100%

4,052 person-times632,400 yuan

588 times

210persons

349 persons

109persons79persons

11persons

25%

39-40

0persons3 times

4%

Investment inproduction safety

Productiontraining

Number ofemergency drills

Number ofparticipants inemergency drills

Number ofemployees in

2023

Percentage of

femaleemployees

Employeeturnover rate

Labor contract

signing rate

Social insurance

coverage rate

Trainingcoverage rate

Below30 years old

30-40 yearsold

40-50 years

old

50-60 years

old

Above 60years old

R&D trainingLogistics and warehousing training

Production trainingMaterial quality training

Production

Training

Health Record

Coverage

New Diagnosed

OccupationalDisease Cases

Online+Offline:Simultaneouslypromotingonlinetrainingandmicro-

Form of Training

courses,

establishingaLearningDaymodeltoencourageautonomouslearning

Combination

courses,

of internal and

externaltraining

InternalTraining:Providingrobusttalentandorganizationalsupportfor

businessdevelopmentthroughnewemployeetraining,high-,middle-,andjunior-level

managementcadretraining,specializedtrainingonessentialknowledgeandskillsfornewproducts

andservices,andregularhostingof博士InnovationBusinessScienceSalons.Additionally,

thecompanyplansandorganizescross-functionalprofessionalskilltrainingonaregular

basisandmonitorsinternalprofessionaltrainingwithineachdepartment.

ExternalTraining:FocusingonInnovationBusinessCloudLectures,

ComprehensiveAbilityEnhancementforInternationalTalent,andBusinessEnglish

ProficiencyImprovementTraining,encouragingfunctionallyreassignedpersonneltoundergo

externaltrainingtoadapttonewjobrequirements.Concurrently,thecompanyactivelyadvances

theLearningDayinitiative,incentivizingemployeestoengageinself-directedlearning.

EncouragingallBusinessDivisions/ResponsibilityCenterstofosteranatmosphereofuniversallearning

:

Formulatingconcretetrainingplans,applyingknowledgegainedtopractice,andcomprehensivelyenhancing

thebusinessmanagementandteammanagementabilities,aswellasindividualcapacities,ofthecompany'smid-to-senior

-levelmanagementcadres.

EmployeeWelfare&CaringMeasuresThecompanygenuinelysafeguardsemployeerights,providing,inadditiontothelegallymandated"FiveInsurancesandOneFund,"groupcommercialsupplementarymedicalinsurance,accidentalinjurymedicalinsuranceandaccidentalinjuryhospitalcashallowanceinsurance,amongotherprotections.Italsoattendstothedailylivingneedsofemployeesandtheirfamilies,distributinggratuityorgiftsduringfestiveseasons,offeringaricharrayofbenefitstoemployees.

WillfarInformationhasorganizedthe"HappySummerVacation"summercamp,guidingemployees'childrenonajourneyofjoy,knowledge,andfriendshipduringthesummerbreak,allowingthemtobroadentheirhorizons,gainknowledge,andhonetheirwillpowerthroughtravel.

Thecompany'sin-housecafeteriaoffersfreelunchesandovertimemealstoemployees,anditprovidesfully-equippedstaffapartmentsandshuttlebusescoveringmostofChangshaCity,facilitatingemployees'dailycommutes.

Thecompanyadvocatesforreasonableworkarrangements,providingemployeeswithvarioustypesofpaidleave.Withincreasedtenure,thenumberofdaysforcertaincategoriesofleavewillalsoincrease,anditorganizesadiverserangeofactivitiestoenrichemployees'lives.

Employee MotivationThecompanyhasestablishedafunctionalremunerationsystemthatcombinesjobresponsibilitieswithtargetresponsibilities,settingdifferentiatedsalarystructuresbasedonvaryingjobdutiesandfunctions.Ithasalsodevisedincentivepoliciesfordifferentlevelsandcategoriesofpositions.Upholdingtheprincipleofvaluecontribution,thecompanyregardsvaluecontributionasthecoreprincipleguidingremunerationdistribution,ensuringapropermatchbetweenemployeesandtheirroles,enablingthosewhocontributemoretoearnmore,therebyguaranteeingfairness,incentives,andcompetitivenessinthecompany'scompensation.Theaverageincomeperemployeehasbeensteadilyincreasingyearonyear.

Inaccordancewithrelevantnationallawsandregulations,andwithaviewtoachievingbusinessobjectives,consideringmarketcompetitionlevelsandincentiveeffects,thecompanyformulatescompensationmanagementandincentivemanagementschemes.Throughthepullofremunerationincentives,thecompanyfullymobilizestheenthusiasmofemployeesatalllevels,promotingmutualdevelopmentbetweentheenterpriseanditsemployees,culminatinginawin-winscenarioofsharedbenefits.Asoftheendof2023,thecompanyhadcumulativelyrepurchasedapproximately12.31millionsharesviatheShanghaiStockExchangetradingsystemthroughcentralizedbiddingtransactions,withatotalpaymentamountofapproximatelyRMB299millionyuan.Thesesharesareintendedforfutureuseinequityincentives,furtherenhancingthecompany'slong-termincentivemechanism.

Protection of Employee Rights and InterestsThecompanyconsistentlyadherestofair,just,andopenemploymentpolicies,rigorouslyenforcingthe'LaborContractLaw,'strengtheninglaborcontractmanagement,andsafeguardingemployees'legalrightsandinterests.Whileensuringthecompany'ssustainedandsteadydevelopment,itpaysattentiontoensuringreasonableincomegrowthforemployeesandactivelyprovidesthemwithvariouslevelsofjobtraining,professionalskilltraining,occupationalhealthtraining,andsafetytraining,ensuringboththephysicalandmentalwell-beingofemployeesandrealizingconcurrentgrowthinemployeeincomeandcorporateprofits.

Thecompanyemphasizestheprotectionoffemaleemployees'rights,conscientiouslyimplementinglawsandregulationssuchasthe'LawofthePeople'sRepublicofChinaontheProtectionofWomen'sRightsandInterests'andthe'SpecialProvisionsonLaborProtectionforFemaleEmployees.'Itstrictlyenforcesprovisionsregardingmaternityandbreastfeedingleaveforfemaleemployees,whileensuringequalpayandbenefitsforbothfemaleandmaleemployees,aswellasprovidingequalopportunitiesforcareerdevelopment.

Employee TrainingThecompanyprovidesemployeeswithanexcellentdevelopmentplatform.Tofullyharnessthetalentsofresearchanddevelopmentpersonnel,ithasspecificallyestablishedanEngineeringTechnologyResearchCenter,anAcademicianWorkstation,andaPostdoctoralResearchStation,amongothers,fosteringagoodenvironmentforgrowth.Additionally,thecompanyhasbuiltacomprehensivetrainingsystem,utilizingits"TalentProductionLine"tofocusonbothinternalcultivationandexternalrecruitment,conductingtieredandcategorizedtrainingforvariousemployeedevelopmentandskillenhancementprograms,constantlyinjectingfreshenergyintothecompany'ssmoothbusinessoperations.Basedonthecompany'sculture,long-termstrategicplanning,annualbusinessmanagement,andactualneedsforjob-specificandprofessionalskills,anannualtrainingplanisformulated,givingrisetoamulti-layered,categorized,diverse,results-oriented,anddynamictraininglandscapetailoredtothecompany'sdevelopmentandalignedwithemployees'growthtrajectories.

WillfarInformation has been recognized as a 'National Model Enterprise for the

Creation of Harmonious Labor Relations.'

41-42

Social Contribution of Main Business and Key Industry-specific IndicatorsInthedomainofdigitalgrids,thefusionofenergyrevolutionanddigitalrevolutionispropellinggriddigitaltransformation.Asnew-generationdigitaltechnologiessuchascloudcomputing,bigdataandtheInternetofThingsdeeplyintegrateandwidelyapplywithenergytechnologies,theemergingenergyecosystemcontinuallyraisesitslevelsofdigitization,networking,andintelligence.Thelarge-scale,high-proportiongridconnectionandconsumptionofnewenergysourcesonthegenerationside,coupledwiththeextensiveinterconnectionofinteractiveandmobilefacilitieslikedistributedenergyandelectricvehiclesontheconsumptionside,necessitatesacceleratedgriddigitaltransformationtofacilitatecoordinatedinteractionbetweenpowersources,grids,loads,andstorage,steeringthegridtowardsamoreintelligentandubiquitousenergyinternet.Cost-reductionandefficiency-enhancementstrategiesdrivethedevelopmentoftheenergydigitaleconomyasthegridacceleratesitsdigitaltransformation.AccordingtoNationalGridannouncements,whileelectricitypricesinChinapersistentlydecline,gridconstructionisintensifying,withultra-largegridsrankingamongtheworld'sbestinvoltagelevels,energyresourceallocationcapacity,andconnectedrenewableenergyscale,placingsignificantoperationalpressureonthesector.Internally,toachievereal-timesensing,visualization,andcontrolthroughouttheentiremanagementprocess,andexternallytomeetcustomers'increasinglydiversified,personalized,andinteractivedemands,relianceondigitaltechnologiestoenhancemanagementandservicelevelsiscrucial,therebyfosteringindustrialupgradingandunlockingtheenergydigitaleconomy.TheSouthernGrid14thFive-YearPlanforGridDevelopmenthighlightsthatSouthernGridhasprioritizeddistributiongridconstructioninits'14thFive-Year'agenda,earmarkinginvestmentstotaling320billionyuan,accountingforapproximately47.8%oftotalinvestment.Keyaspectsofdistributiongridconstructioninclude:

1)Continuouslystrengtheningurbandistributiongriddevelopment,ensuringthathigh-reliabilitydemonstrationzonesandpremiumpowersupply

pioneerareashaveanannualaverageoutagetimenotexceeding5minutes,reachinganinternationalleadingstandard,withdistributionself-healingachieving100%;

2)Consolidatingandupgradingruralgrids,enhancingdistributionnetworkintelligence.Large-scalerenovationandupgradingeffortswillbe

carriedoutonacounty-levelbasis.By2025,theannualaverageoutagetimeforall-networkcustomerswilldroptolessthan5hoursperhousehold,withdowntownareasreducingto0.5hoursperhousehold,urbanareasto2hoursperhouseholdandruralareasto7.5hoursperhousehold,maintainingadomesticleadingposition.

AccordingtoaStateGridannouncement,theStateGridcontinuestosignificantlyincreaseinvestmentindistributiongrids,buildingadomesticallyandinternationallyleadingenergyinternetenterprisewithChinesecharacteristics.Amidstpersistentgrowthinelectricityload,flexibleintegrationofnewenergy,distributedpowersources,andelectricvehicles,alongwithstrengtheneddemandfordiverseelectricityusagefromconsumers,StateGridandSouthernGridareexpectedtosustainablyaugmentinvestmentindistributiongrids.WillfarInformation,rootedinthegridindustryanddeeplyengagedingriddigitalizationandinformatization,revolvesaroundenergyflowanddataflow.Thecompanyutilizesself-developedcommunicationchipsandmodulesfordatatransmission,followedbyself-developedgatewaydevicesfordatainteraction,deliveringacomprehensiveenergymanagementsolutionencompassingbothsoftwareandhardware.InresponsetotheemphasisinStateGridandSouthernGrid's'14thFive-Year'workprioritiesonreducingoutagetimesandloweringlinelosses,thecompanyhasspecificallydevelopedfaultlocationschemesandlinelossanalysisschemes.Theseenablereal-timemonitoringandpreciselocalizationofpoweroutagesacrosstransformer-station-line-box-consumerlevels,aswellasmulti-levellinelossanalysisfromsubstationtobranchbox,branchboxtometerbox,andmeterboxtohouseholdmeter,supportingintelligentanti-theftdiagnosis.Thiseffectivelyfacilitatesproactivesensing,judgment,andrepair,ensuringpreciseandswiftfaultrepairservicesandrapidpowerrestoration,alongsiderapidvalidationofcomparisonanalysisresultsagainston-siteelectricalabnormalities,enablingefficientandpreciseinvestigationofuserelectricitytheftbehavior.PilotprojectshavealreadybeensuccessfullyimplementedinprovinceslikeAnhuiandGuizhou,effectivelyreducingdistributiongridlinelossesandtherebycontributingtocarbonemissionreductionsinthesegrids.

Types and Contributions of Philanthropic and Charitable Activities

WillfarInformationactivelyassumestheresponsibilitiesandcommitmentsofanationalenterprise,fosteringtheconceptofa"Public-WelfareOrientedWillfar."Thecompanyhasassembledavolunteerteam,activelyengagingincharitableendeavorssuchasdonations,educationalsponsorships,andvisitationandconsolationactivities.TheyhaveventuredtoXiluoTownandGuitangTowninLongshanCountytoparticipateinruralrevitalizationefforts,extendingcondolencestostrugglinghouseholdsandstudents.Demonstratingthehighsenseofresponsibilityandcontributionofasocially-orientedenterprise,thecompanystrivestocreatevalueforsociety.Thecompanyadherestoleveragingtechnologicalandinformationalmeanstofacilitateruralrevitalization.Ruralareasserveasthefrontlinesofthisrevitalizationeffort,whereaveragehouseholdincomesarerelativelylow;energyconservationcaneffectivelyreducehouseholdexpenses,enhancingdisposableincomelevels.Asurbanizationratescontinuetoclimb,issuessuchasheavygridloadsandweakruralpowerinfrastructuregraduallysurface.Toaddressthesechallengesfacedbyruralareas,thecompanyhasdevelopedandlaunchedaSmartEnergySolutionforRuralHouseholds.Bymonitoringdigitalinformationsuchaselectricityload,safety,appliancetypesandconditions,chargingpiles,andhouseholddistributedphotovoltaicsystemsinnewruralhouseholds,thesolutionenablesanalysis,diagnosis,andcontrolofelectricalequipment.Itcanprovidedigitalvalue-addedservicestoruralhouseholdsandentirevillages,includingenergyconsumptionanalysis,energy-savingdiagnosis,loadregulation,electricalsafety,andappliancemalfunctionwarnings,realizingintelligentenergyuseforruralhouseholdsandvillages,renderingruralhouseholdenergyobservable,measurable,controllable,andadjustable.

TheOrganizationDepartmentofHunanXiangjiangNewArealedWillfarInformationTechnologyCo.,Ltd.,amongotherkeyenterprisesinthearea,toXiluoTownandGuitangTowninLongshanCountytocarryoutruralrevitalizationwork,consolingstrugglinghouseholdsandstudents.Duringthisevent,theTwoNewCommitteesundertheOrganizationDepartmentoftheNewDistrictorganizedvariousenterprisestodonatefunds,adoptingacombinedapproachof"multiple-to-multiple"concentratedassistanceand"one-to-one"decentralizedassistance,aimedatprovidingaidandcomforttostrugglinghouseholdsandstudentsinGuitangTownandXiluoTown,maximizingtheeffectivenessofpovertyalleviationandeducationalsupport.LeadersfromtheNewDistrict'sOrganizationDepartmentandkeyenterprisesalsopersonallyvisitedfourstrugglinghouseholds,presentingthemwithpovertyrelieffundsandsupplies,encouragingthemtoovercomedifficultiesandstriveforself-relianceandself-improvement.In the Willfar Information's exhibition hallThey saw a myriad of chips and water metersThey gained a vague understanding of their parents' workGot to know more industry knowledgeMarveling at the vibrant growth of technology

Children entered Willfar Information's workshopWitnessing scenes of automation and intelligenceUnderstanding the essence of intelligent

manufacturingKnowing that science and technology are the first

productive forcesIn their young hearts, a new dream takes root

Social Contributions & Philanthropy

43-44

Shandong Province Higher Education Energy Management Training Conference Successfully

Held at WillfarInformationFromMarch22ndto25th,theShandongProvinceHigherEducationEnergyManagementTrainingConference,organizedbytheEnergyManagementBranchoftheShandongSchoolLogisticsAssociationandhostedbyWillfarInformation,tookplaceattheWillfarScienceandTechnologyPark.Over150representativesfromvariousuniversitiesinShandong,theShandongSchoolLogisticsAssociation,governmentbodies,andenterprisesattendedtheconference.Duringtheevent,expertsfromuniversitiesandseniorexecutivesfromWillfarInformationengagedinin-depthdialoguesandinteractiveexchangesthroughaseriesofthemedlectures,focusingontopicssuchasgreenandlow-carbonpoliciesandtheestablishmentofuniversityenergysystems,significantlyenhancingmutuallearningandreferenceinthedomainsofsmartcampusconstructionandeducationallogisticsservices.

Launch Meeting Held for a CEC GroupStandard Mainly Developed by Willfar

InformationInearlyAugust2023,theLaunchMeetingfortheCompilationof2023GroupStandard,organizedbytheElectricIntegratedCircuitStandardizationTechnicalCommitteeoftheChinaElectricityCouncilandhostedbyWillfarInformationTechnologyCo.,Ltd.,withthesupportofBeijingZhixinMicroelectronicsTechnologyCo.,Ltd.,wasconvenedattheWillfarScienceandTechnologyPark.ThismeetingmarkedtheofficialcommencementofthecompilationofagroupstandardledbyWillfarInformation.'TechnicalRequirementsforIntegratedModulesUsedinLow-voltageSemiconductorCircuitBreakers',agroupstandardspearheadedbyWillfarInformation,pioneersthestandardizationprocessforcorefunctionalcomponentsinlow-voltagesemiconductorcircuitbreakers,indicatingnewbreakthroughsanddirectionsinWillfarInformation'sR&Deffortsinthecoremodulesectoroflow-voltagesemiconductorcircuitbreakersforthepowerindustry.

Hunan Province New Power System Development Joint Research Center

EstablishedWillfar Information Supports Key Technology R&DInearlySeptember2023,theLaunchMeetingfortheConstructionoftheNewPowerSysteminHunanProvinceandtheEstablishmentoftheHunanProvinceNewPowerSystemDevelopmentJointResearchCenterwasheldinChangsha.Asamemberofthejointresearchcenter,WillfarInformation'sPresident,LiXianhuai,wasinvitedtoattendthemeeting.Asaparticipatingorganization,WillfarInformationassignedexpertstoserveontheExpertCommittee,specificallyengaginginresearchtaskswithinfiveresearchsub-centers:cleanandefficientcoalutilization,smarthydropower,loadaggregation(virtualpowerplants),newenergyequipment,anddigitalenergy.

National Key Research and DevelopmentProject with the Participation of Willfar

Information Passes InspectionTheKeyNationalResearch&DevelopmentProgramProject-"KeyTechnologiesforDigitalGrids"hassmoothlypassedinspectionorganizedbyChina'sMinistryofIndustryandInformationTechnology.LedbytheDigitalGridResearchInstituteCo.,Ltd.ofChinaSouthernPowerGridCompany,theprojectwasjointlyundertakenbymultiplein-gridenterprisesandrenowneddomesticuniversities.WillfarInformation,asthesoleindustrialentity,deeplyparticipatedinthestudyofcriticalprojecttopics,successfullycompletingthedevelopmentof"CoreChipsforEdgeComputing"and"EdgeComputingDevicesBasedonMulti-serviceCoordination"asperprojectplans.Theoutcomesofthesetopicswereevaluatedbyanauthoritativeexpertpanelasbeinginternationallyadvanced.

Industry Collaboration & Shared Development

45-46

OnDecember12,the"Sino-SaudiInvestmentConference"washeldinBeijing.ViceMinisterofCommerceofChina,LiFei,deliveredaspeech,andSaudiArabia'sMinisterofInvestment,KhalidAl-Falih,gaveapresentation.LiHong,ChairwomenofWillfarInformation,attendedtheopeningceremonyandparticipatedintheconference.SeveralArabcountrieshaveconcurrentlyformulatedlong-termdevelopmentstrategiesthatalignwiththeBeltandRoadInitiative,reflectingashareddesireformutualdevelopmentbetweenChinaandArabnations,whichpresentsnumerousopportunitiesforfutureeconomicandinvestmentcooperationbetweenthetwosides.Inthefuture,WillfarInformationwillactivelyrespondtotheBeltandRoadInitiative,proactivelyparticipatingintheconstructionofnewenergysystemsandsmartmanagementinSaudiArabiaandthebroaderArabregion,contributingtothedigitalandintelligenttransformationofcitiesintheregion.

The2024AmericanTransmission&DistributionandPublicUtilityExhibition(DISTRIBUTECHInternational2024)wasgrandlyheldattheOrangeCountyConventionCenterinOrlando,USA,fromFebruary27to29,attractingnearly17,000professionalvisitorsandover500globallyleadingexhibitingcompanies.AtDistribuTECH2024,WillfarInformationshowcaseditssolutionsforpowerAMI&energyIoT,intelligentdistributionnetworks,andwater&gasAMI,demonstratingthelatestachievementsandtechnologiesinChina'senergyIoTindustry,aswellasthevisionandcomprehensivestrengthofChineseenterprises.Thecompanyalsosoughttoestablishconnectionsandcollaborationswithprofessionalsandclientsfromaroundtheworld.

InMarch2023,the"EmpoweringEnterpriseswithIntelligence:EnteringSupercomputing"collaborationmeetingwasheldattheNationalSupercomputingCenterinChangsha,attractingover160companiesfromvariousindustries.LiXianhuai,PresidentofWillfarInformation,representedthecompanyinsigningastrategicpartnershipagreementwiththesupercomputingcenteronsite.ThiscollaborationwillleverageWillfarInformation'sstrengthsinhigh-performancecomputing,bigdata,informationsecurity,andartificialintelligence,providingthenecessarycomputationalpowersupportandalgorithmicresearchforthesupercomputingcenter'sdigitaltransformation,enterprisesmartbrain,bigdataintelligenceplatform,anddigitaltwinplatformconstruction.

OnJuly11,the2023CouncilMeetingoftheInnovativeAllianceforNewPowerSystemswasheldinBeijing.ThemeetingthoroughlyimplementedtheimportantspeechesandinstructionsofPresidentXiJinping.LiHong,ChairwomenofWillfarInformation,attendedasacouncilmemberofthealliance,gaininganin-depthunderstandingofthenationalgoalsandplansfortheconstructionofanewpowersystem.Thecompanywillcontinuetoadheretoinnovation-drivendevelopment,contributingtotheconstructionofChina'sdigitalgridandfacilitatingthedigitaltransformationofnewpowersystems.

WillfarInformation Invited to Attend 2023Council Meeting of Innovative Alliance for New

Power Systems

"Empowering Enterprises with Intelligence: Entering

Supercomputing" Collaboration Meeting HeldWillfarInformation Forms Strategic Partnership with

Supercomputing Center

WillfarInformation Participates in the 2024American Transmission & Distribution and

Public Utility Exhibition

WillfarInformation Invited to Attend Sino-Saudi

Investment Conference

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FromNovember15thto17th,the2ndNationalWaterSavingIndustryInnovation&DevelopmentConferencewasheldatShenzhenWorldExhibition&ConventionCenter(NewBao'anPavilion).Concurrently,the2ndNationalWaterSavingIndustryInnovation&DevelopmentAchievementsExhibitiontookplace,withWINMETEREnergy,asubsidiaryofWillfarInformation,participating.WINMETEREnergyshowcasedindustry-leadingproductsandwater-savingsolutions,includingintelligentwatermanagementsolutions,urban-ruralintegratedwatersupplysolutions,modularwatermeters,andultrasonicwatermeters,demonstratingWillfarInformation'scontinuousdedicationandR&Dstrengthinthesmartwatersector.

FromNovember14thto16th,WillfarInformationwasinvitedtothe16thAsianPower&EnergyExhibitionheldinJakarta,Indonesia.Theeventattractedover12,000professionalsfrom50countriesworldwide,70powercompanies,and300enterprises.Byattendingthe16thAsianPower&EnergyExhibition,WillfarInformationdemonstratedthevisionandcomprehensivestrengthofaChineseenterprise,fosteringcloseconnectionsandcollaborationswithglobalindustryleaders,professionals,andclientstocollectivelybuildabrighterfuture.

OnNovember15th,themed"InnovationDrivesHigh-QualityDevelopmentoftheElectricPowerIndustry,"the31stShanghaiInternationalElectricPowerEquipment&TechnologyExhibitionwasheldinShanghai,co-organizedbytheChinaElectricityCouncilandStateGridCorporationofChina.WillfarInformationwasinvitedtoparticipate,bringingadiversifiedarrayofsolutions.PresidentLiXianhuaiattendedtheopeningceremonyandpresentedakeynotespeech,sharingthecompany'sexperienceandcasestudiesinutilizinginformationtechnologytofacilitatetheconstructionofanewpowersystem.

OnNovember28thlocaltime,the24thEuropeanPower&EnergyExhibitionopenedgrandlyinParis,France.AsaleadingenterpriseintheEnergyInternetofThings(IoT),WillfarInformationwasinvitedtoattend,showcasingitslatesttechnologiesandinnovativeachievementsinthedigitalgriddomaincomprehensively.

WINMETER EnergyInvited to Attend the 2ndNational Water Saving Industry Innovation &

Development Achievements ExhibitionWillfarInformation Invited to Attend the 24thEuropean Power & Energy Exhibition

WillfarInformation Attends the 31st ShanghaiInternational Electric Power Equipment &

Technology Exhibition

WillfarInformation Participates in the 16thAsian Power & Energy Exhibition

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Withthethemeof"StimulatingNew-qualityProductivity,LeadingHigh-qualityDevelopment,"the2023ChinaListedCompanyEntrepreneursAnnualMeetingwasheldinShenzhenonNovember10th,aneventorganizedbytheChinaAssociationforPublicCompanies,guidedbytheShenzhenMunicipalGovernment,supportedbytheShenzhenStockExchange,andco-hostedbytheShenzhenMunicipalBureauofLocalFinancialSupervisionandAdministrationandtheFutianDistrictPeople'sGovernment.ChairwomenLiHongofWillfarInformationwasinvitedtoattendandparticipatedinthe"FemaleEntrepreneurs'SharingForum"withinthecontextofinnovation,deliveringaninsightfulpresentation.Furthermore,duetoitspersistenteffortsandoutstandingperformanceinhigh-qualitydevelopment,WillfarInformationdistinguisheditselfamongover5,000A-sharelistedcompanies,earningrecognitionasa"2023BoardofDirectorsExcellentPracticeCase."

The"2023(8th)High-QualityWaterSupplyDevelopmentForum,"jointlyhostedbyE20EnvironmentPlatform·WaterSupplyServicePromotionAllianceandChangshaWaterGroup,openedinChangsha.WINMETEREnergy,asubsidiaryofWillfarInformation,wasinvitedtoattend.TopicsattheforumencompassedopportunitiesandchallengesforthewatersupplyindustryunderthewaveofChinese-stylemodernization,newmeasuresforwatersupplysecurity,innovationinfine-tunedcorporateoperationandmanagement,advancedandvalue-addedwatersupplyservices,andmore,collectivelyexploringthefutureoftheindustryandinterpreting"NewWaterSupplyunderChinese-styleModernization."

OnOctober20th,the24thEastAsiaandWesternPacificPowerIndustryAssociationConferencewasheldinXiamen,FujianProvince,withVicePresidentHanZhengattendingtheopeningceremonyanddeliveringaspeech.Duringtheconference,PresidentLiXianhuaiandVicePresidentFanLvofWillfarInformationaccompaniedvisitorsatthebooth,introducingthecompany'soverviewandoverallsolutionsinintelligentgridsanddigitalcities,extensivelydetailingthedigitalizeddistributionandutilizationsolutions,internationalenergyAMIsystems,virtualpowerplant/micro-gridsolutions,andIoTfiremonitoringsolutions.

The5thGuangdong-HongKong-MacaoGreaterBayAreaWaterResourcesForum,themed"GatheringWaterWisdom,CreatingaGreenandBeautifulBayArea,"officiallykickedoffinDongguan.WINMETEREnergy,asubsidiaryofWillfarInformation,wasinvitedtoparticipate.HavingbeeninvitedmultipletimestotheGreaterBayAreaWaterResourcesForum,WINMETEREnergyreceivedanexclusiveinterviewduringtheeventfromtheorganizer'sofficialmediapartner,TencentNews.Thecompanyaimstofurtherstrengthenitstieswithvariouswaterresourceunitsinthebayareathroughthisgathering,contributingmoresignificantlytotheregion'ssmartwaterinfrastructuredevelopment.

WillfarInformation Attends the 2023 China ListedCompany Entrepreneurs Annual Meeting

WINMETER Energy Invited to Attend the 5thGuangdong-Hong Kong-Macao Greater Bay Area

Water Resources Forum

WINMETER EnergyInvited to the 2023 High-

Quality Water Supply Development ForumWillfarInformation Attends the 24th APPEA

Conference

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Digitally Empowered Energy Creates the Future | WillfarInformation

Participates in the 2023 International Digital Energy ExhibitionDigitallyempowered,energycreatesthefuture.The2023InternationalDigitalEnergyExhibitionwasheldatShenzhenConvention&ExhibitionCenter(Futian)fromJune29thtoJuly2nd,withWillfarInformationshowcasingnumeroussolutions.Theexhibitionfeaturedaprofessional"5+1+1"format,withWillfarInformation,asaleadingEnergyIoTsolutionsprovider,presentingnewtechnologies,products,models,andformatsarounddigitalsmartgridsandsmartcities.Throughtheseexchanges,thecompanyhopestofosterindustryconsensus,promotestandardizationandcoordinationofdigitalenergyonaglobalscale,andstimulateregionalenergycooperationandmutualbenefits.

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The 4th Green Expo Opens and WillfarInformation Receives "NationalGreen Factory" Award, Boosting Green Development in Hunan

OnJuly28th,the4thHunanInternationalGreenDevelopmentExpoopenedinChangsha.PresidentLiXianhuaiofWillfarInformationattendedandparticipatedintheconference.TheeventfeaturedanawardceremonyforenterprisesreceivingthetitleofNationalGreenFactoryin2022,withWillfarInformationbeinghonoredwiththe"NationalGreenFactory"award.ThisrecognitionfullydemonstratesWillfarInformation'sroleasaleaderincontinuouslybuildingadvancedgreenmanufacturingenterprises,drivingthegreenindustrialtransformationwithintheindustry,acceleratingtheestablishmentofgreenmanufacturingsystems,andpromotinghigh-qualityindustrydevelopment.

WillfarInformation Invited to Attend the 5thWest Africa (Nigeria) International Water Expo

2023

The5thWestAfrica(Nigeria)InternationalWaterExpo2023wasgrandlyheldatLandmarkCentreinLagos,Nigeria,fromJuly11thto13th,withWillfarInformation,aleadingproviderofEnergyIoTsolutions,beinginvitedtoparticipate.Asaprofessionalwatertreatmentexhibition,theWestAfricaNigeriaInternationalWaterandWastewaterExhibitionoffersWillfarInformationcomprehensiveinformationandtradeopportunitiestoaccesstheAfricanmarket,enhancingthecompany'svisibility.

China-Africa Economic & Trade Expo OpensWillfarInformation Supports Sustainable New

Energy Development in AfricaOnthemorningofJune29th,theThirdChina-AfricaEconomic&TradeExpoandChina-AfricaEconomic&TradeCooperationForumopenedattheHunanInternationalConventionandExhibitionCenterinChangsha.ChairwomenLiHongofWillfarInformationattendedtheopeningceremony.Chineseenterprises'operationsontheAfricancontinentrepresenta"two-waypursuit,"withWillfarInformation'sproductsandservicesaimedatimprovinglocalinfrastructurewhilealsocontributingtothesocio-economicprogressofAfricannations.

OnJune11th,the10thChina-ArabStatesBusinessmenConferenceandthe8thInvestmentSeminarwereheldattheKingAbdulazizInternationalConferenceCenterinRiyadh,thecapitalofSaudiArabia.ChairwomenLiHong,VicePresidentZhangZhenhua,andVicePresidentZhongXiuyuofWillfarInformationattendedtheopeningceremonyandparticipatedintheconference.Duringtheevent,WillfarInformationsignedastrategicmemorandumofunderstandingwiththeSaudiInvestmentMinistry(MISA)andtheSaudiNTCCGroup.LiHong,ZhangZhenhuaandZhongXiuyualsometwiththeRoyalCommissionforJubailandYanbu.

The2023PhilippinesIoTCongresswasgrandlyheldattheWorldTradeCenterinPasayCity,MetroManila,Philippines,fromJune26thto28th.WillfarInformation,asaleadingEnergyIoTsolutionsprovider,wasinvitedtoparticipate.Attheexhibition,WillfarInformationshowcasedthelatestachievementsandtechnologiesofChina'sEnergyIoTindustry,demonstratingthevisionandcomprehensivestrengthofChineseenterprises,establishingconnectionsandcollaborationswithprofessionalsandclientsworldwide,andenvisioningabrightfuturetogether.

OnMarch22ndand23rd,the2023BoaoNewPowerSystemInternationalForumwasheldinBoao,Hainan.Focusedon"Openness,Cooperation,Sharing,PromotingGreenandLow-CarbonEnergyDevelopment,"theforumexploredpathwaysforthedevelopmentofnewpowersystems.VicePresidentFanLvandCommunication&ChipBusinessGroupPresidentXiaoLinsongofWillfarInformationwereinvitedtoattendtheforum.

OnMarch28th,the"2023ChinaInternationalCleanEnergyExpo,"jointlyorganizedbytheChinaElectricityCouncil,StateEnergyInvestmentGroupCo.,Ltd.,ChinaChamberofCommerceforImport&ExportofMachineryandElectronicProducts,ChinaIndustrialOverseasDevelopment&PlanningAssociation,andChinaPhotovoltaicIndustryAssociation,amongothers,openedinBeijing.WillfarInformation,asaleadingEnergyIoTsolutionsprovider,madeastunningappearance.

WillfarInformation Signs StrategicMemorandum of Understanding with Saudi

Investment Ministry on the First Day ofChina-Arab States Cooperation Forum

WillfarInformation Attends the2023 BoaoNew Power SystemInternational ForumWillfarInformation Participates in the 2023 China

International Clean Energy ExpoWillfarInformation Invited to Attend the 2023

Philippines IoT Congress

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The Company's SustainableDevelopment Strategy

Corporate Governance &Sustainable Social Value

Enhancing Equality, Efficiency &Returns

4.1 Discussion & Analysis on the

Company's Future Development

4.6 Operation of the General Meeting of

Shareholders, Board of Directors andSupervisory Board

4.11FocusingonValueCreation

4. Governance Section

for

ContinuousSubstantialReturnstoInvestors

4.2 Party and Mass Organization Building

4.7 Disclosure of Information

4.12 Harmonizing Interests: Building a Win-

Win Relationship between Management &Shareholders

4.3 Communication with Stakeholders

4.8 Investor Relations Management

4.4 Sustainable Development Strategy

4.9 Business Ethics

4.5 Sustainability Indicators

4.10 Compliance Training

"Digital Economy" Drives Comprehensive Development of

Smart Cities

The14thFive-YearPlanproposesthattheaddedvalueofthecoreindustriesofthedigitaleconomyaccountfor10%ofGDPby2025.Smartcitiesprovideacontinuallygrowingapplicationscenarioforthedevelopmentofthedigitaleconomy,withpromisingprospectsinareassuchassmartwaterservices,smartgas,smartfirefighting,integratedenergyforsmartparks,andmore,usheringinaneraofrobustsmartcityconstruction.TheStateCouncilrequiresthatby2025,thenationwidepublicwatersupplynetworkleakageratebecontrolledat9%orlower.TheOutlinefortheConstructionoftheNationalWaterNetworkexplicitlycallsforpromotingthehigh-qualitydevelopmentofChina'swaternetworkthroughmeanslike"acceleratingintelligentdevelopment."Accordingtoforward-lookingindustryresearchinstitutions,themarketspaceforthecombinationofsmartwaterplatforms,intelligentwatertreatmentequipment,andpipelinerenovationequipmentexceeds300billionyuan.

In2023,Chinacompletedinvestmentofnearly1.2trillionyuaninwaterconservancyconstruction,settinganewhistoricalhighwithayear-on-yeargrowthof10.1%.In2024,thenationalwaternetworkconstructionwillbecomprehensivelyadvanced,prioritizingthecoordinateddevelopmentofurbanandruralwatersupplyintegration,large-scalecentralizedwatersupply,andthestandardizedconstructionofsmall-scalewatersupplyprojectstailoredtolocalconditions.Effortswillbeintensifiedtoconstructadigitaltwinwaternetwork,advancethedigitaltransformationofthefirstbatchofkeynodesinthenationalwaternetwork,renovateandupgrademorethan1,000mediumandlarge-scaleirrigationdistricts,andcoordinatetheconstructionofmainirrigationdistrictfacilitieswithhigh-standardfarmland.

Withthenation'scontinuedpushforsmartcityconstruction,smartfirefighting,asanintegralpartofit,willseesustainedgrowthinmarketdemand.Meanwhile,energyefficiencyimprovementsdriveincreaseddemandforcomprehensiveenergyservices.Accordingtoaforward-lookingindustryresearchinstitution,theChineseindustrialenergyefficiencyservicemarketisexpectedtoreachnearly100billionyuanby2025,whilethefirefightingmarketwillapproach120billionyuan,indicatingvastmarketpotential.

Additionally,themarketsforsmartgas,smartheating,smartmanholecovers,andsmartstreetlightsexceed600billionyuan.Intherealmofintegratedenergymanagement,smartparks,comprehensiveenergyandenergyefficiencymonitoring,andintelligentchargingwillgenerateamarketsurpassing400billionyuan,constitutingnewsourcesofgrowth.

Lookingahead,wewillcenteroureffortsonthegreendual-carbonmissionofsmartcities,aswellastheintelligentsecurityimperative,servingtheglobalcommercialsector'sdigitaltransformationandtheintelligentmanagementofhouseholdenergy.

Riding the Wind of the Belt and Road Initiative,Unleashing the Blue Ocean of Energy IoT

Accordingtostatisticsfromrelevantinstitutions,in2022,theprimarySoutheastAsiancountries(Indonesia,Vietnam,Singapore,Malaysia,andThailand)sawanelectricityconsumptiongrowthrateof+5.4%,leadingChinaandtheUnitedStatesbyapproximately2percentagepointsandsignificantlyexceedingEurope.Inthesameyear,electricityinvestmentgrowthindevelopingcountriesoutsideChinawasonly7%,laggingfarbehindthe14%growthinChinaanddevelopedeconomies.Againstthebackdropofsurgingelectricitydemandandsluggishinvestment,SoutheastAsiannationsurgentlyneedtoacceleratetheirpaceofnewinvestmentstosupporttheirrapidlygrowingpowerneeds.TheIEAestimatesthatthegrowthrateofpowerinvestments(includingpowergeneration)mustreach30%tomeettheirenergytransitionconstructionplans.Specifically,averageannualgridinvestmentsinSoutheastAsiaareexpectedtoreach$30billionbetween2026and2030,withgridinvestmentsincreasingthreefoldoveradecade,reflectingrobustdemand.

Overthepastdecade,Chinahassignedover200cooperationdocumentsonjointlybuildingtheBeltandRoadInitiativewith152countriesand32internationalorganizations,fosteringhigh-qualityBeltandRoadcooperationthatpromotesindustrialstructureupgradingandenhancesindustrialization,digitalization,andinformatizationinparticipatingcountries.Asthesecountriesundergoindustrialrestructuringandacceleratedurbanization,therewillbeastrongdemandforenergyIoT.

Currently,theestimatedtotalinvestmentacrosseconomiesalongtheBeltandRoadstandsatapproximatelyUSD575billion,encompassing70countriesalongtheroute.Sector-wise,energyandpowerrepresentthelargestinvestmentareawithintheBeltandRoadstrategy,withanestimatedinvestmentofaroundUSD264.5billion,accountingfor46%oftheoveralltotal.

TheBeltandRoadInitiativespansover60%oftheworld'spopulation(exceeding4billion)andischaracterizedbysignificantinfrastructureinvestmentneedsandunderdevelopedlocalindustries.ItservesastheprimaryfocusforChina'soverseaspowerinvestmentsandwaterprojectconstruction.AsiaandAfricaaretheprincipalprojectregionswithinthiscontext,withBeltandRoadprojectsinthesecontinentsaccountingforaremarkable89.2%ofthetotalinvestmentamountacrossthemorethan140countrieswhereinitiativeshavebeenlaunchedglobally.

Movingforward,wewillcontinuetoadvanceproductinternationalization,leveragingourcomprehensivesolutioncapabilitiesinsensing,communication,andsystemintegration,providingcomprehensivetechnicalandoperationalservicestotheglobalmarket.

The "Dual Carbon" Strategy Spurs AcceleratedTransformation and Upgrading of the New Power System

Thereporttothe20thCPCNationalCongressputforwardthenotionof"activelyyetprudentlyadvancingcarbonpeakingandcarbonneutrality.BasedonChina'senergyandresourceendowments,wewilladheretoaprincipleoffirstestablishingbeforedismantling,implementingcarbonpeakingactionsinaplannedandphasedmanner,"andexplicitlystatedtheintentionto"accelerateplanningandconstructionofanewenergysystem"and"strengthenthesystemforenergyproduction,supply,storage,andmarketing,ensuringenergysecurity."

Achievingthegoalsof"carbonpeaking"and"carbonneutrality"willreshapeChina'sfuturemodesofproductionandliving,exertingfar-reachingimpactsonsocioeconomicdevelopment.Anenergysystemdominatedbyelectricitywillunderpinthetransformationandupgradingofindustrialeconomiesandthesteadilyimprovinglivingstandardsofthepeople.Simultaneously,underthetrendofgreenandlow-carbondevelopment,newlow-carbontechnologies,particularlydeepde-carbonization,zero-carbon,efficientpowerusage,renewableenergygeneration,andvirtualpowerplanttechnologies,arebecomingtheforefrontoffuturetechnologyandnewcompetitivefocalpoints.

Toaccomplishthe"dualcarbon"objectives,energyisthe"mainbattlefield,"andelectricityisthe"principalforce."Inthepowersector,whichaccountsforthelargestshareofcarbonemissions,promotingcleanenergyonthesupplysideandboostingelectrificationratesonthedemandsideareimperative.

Theconstructionofthenewpowersystemisaccelerating,necessitatingtheadvancementofgriddigitalizationandintelligenttransformation,promotionofPowerIoT,EnergyIoT,andsmartdistributiongridconstruction,enhancementofsource-grid-load-storagecoordinationandinteractioncapabilities,andcontinuousimprovementofrelatedtechnologicaliterationsandproductdemands.

Inthefuture,wewillsteadfastlydrivethedigitaltransformationandintelligentupgradingofthepowergrid,andpromoteChina'sadvanceddigitalgridsolutionsglobally,contributingourstrengthtotheglobalpursuitofcleanandefficientenergyutilization.

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Discussion&Analysisonthe

Company'sFutureDevelopment

On July 25, 2023, the Party Committee organizeda themed Party lecture for all Party members,titled "Striving as a New Era Idealist, DedicatedProfessional, Exceptional Talent, and Contributorto the Centennial Dream of Willfar."

InearlyJuly2023,theWillfarPartyCommitteeheldits

generalassemblyoftheyear,guidingallPartymembersin

studying

Partyhistory,reinforcingfaithinPartyleadership,enhancing

senseofmissionandresponsibility,aligningwithnational

strategies,

andcontributingtosocietalprogress.

OnAugust16,2023,theDigitalSmartCityBranchoftheWillfarPartyCommitteeconductedathemedParty

dayevent,"RemainingTruetoOurOriginalAspirations:AnsweringaHundredQuestions,AdvancingResolutelyon

MountLu."Theeventintertwinedintellectualandideologicallearningandexchange,furtherconsolidatingunityand

cohesionamongbranchPartymembers.

WillfarInformationTechnologyCo.,Ltd.steadfastlyadherestotheleadershipoftheCommunistPartyofChina(CPC)and,undertheguidanceofthehigher-levelPartyCommittee,establishedtheWillfar’sPartyCommitteein2022.Thecommitteeoverseesfivebranchesandcurrentlycomprises118Partymembers,including5probationarymembers.Animpressive75.69%holdundergraduatedegreesorhigher,formingahighly-educated,high-caliber,high-standard,andrigorously-disciplinedvanguardforce.OurPartybranchesadheretothecoretenetofintegratingPartybuildingintobusinessoperations,emphasizingtheParty'sroleinguidingthecompany'shigh-qualitydevelopment,andreciprocallyreinforcingPartybuildingthroughthisgrowth.TheyalignPartyactivitieswithemployeecareeradvancement,establishingdistinctivemodelPartymemberposts,dedicatingthemselvestoemployeesupport,andtakingtheleadinsocialwelfareinitiatives.In2022,thePartyCommitteeconvenedsixplenarysessions,organizedeightParty-buildingevents,andhostedfivevisitsforPartyandmassorganizationbuilding.

TheWillfarPartyCommitteeencompassesfivebranches,withatotalof118Partymembers,including89directly-managedmembersand29floatingmembers.Amongthem75.69%holdabachelor’sorabove,formingahighly-educated,highly-skilledandwell-self-disciplinedvanguardteam.

Party and Mass Organization Building

The Willfar Party Committee

61-62

63-64

Incorporation of Sustainable Development Principles into CorporateCultureThecompanyhasseamlesslyintegratedESGpracticesintoitsdailyoperations,embeddingsustainabilityintothecompany'stop-leveldesign.Thecompanyhasestablisheda"BoardofDirectorsStrategy&ESGCommittee,"whichisresponsibleforoverseeingandmanagingthecompany'ssustainability-relatedmatters,aswellasenvironmental,social,andcorporategovernance(ESG)issues.Underthis"BoardofDirectorsStrategy&ESGCommittee,"a"SustainableDevelopmentESGWorkingGroup"hasbeensetuptoleadandmanageESG-relatedwork,organizingandcoordinatingESG-relatedactivitiesacrossvariousbusinessdepartmentsandfunctionaldivisionswithinthecompany.Forconsecutiveyears,thecompanyhasproactivelyadvancedESGpractices,adheringtotheguidanceofthenational"DualCarbon"strategy,respondingtothecountry'sinitiativesontheconstructionofanewenergysystemandtheBeltandRoadInitiative,activelyfulfillingitsphilanthropicresponsibilities,andconsistentlycreatingvalueforthemarket,industry,nation,andsocietyatlarge.Sincetheyearfollowingitslisting,thecompanyhaspublishedannualSocialResponsibilityReports.In2023,itgarneredaccoladesincludingbeingnameda"NationalGreenFactory,"an"AAACreditUnitEvaluatedbytheChinaElectricityCouncil,"achievingthehighestdisclosurerating(A-level)fromtheShanghaiStockExchange,securinga5AratingintheSecretarytotheBoard'sPerformanceEvaluationbytheChinaAssociationforPublicCompanies,receivinganESGratingof"A"fromWindInformation,recognitionforBestPracticesintheBoardOffice,OutstandingPracticesinAnnualPerformanceBriefings,the"ExcellentCaseforCarbonPeakingandCarbonNeutrality"awardedbytheXinhuaCreditJinlanCup,the"2023ESGModelEnterprise"distinctionattheBoaoEnterpriseForum,andthe"BestESGAward"fromCailianPressGroup,amongotherprestigioushonors.

Communication with StakeholdersSustainable Development Strategy

Theselectionofthe"XinhuaCreditJinlanCupESGExcellenceCases"listisorganizedbyXinhuaNewsAgency'sChinaEconomicInformationService.WillfarInformation,withitsall-encompassingpracticeofESGandsocialvaluecreation,stoodoutamonghundredsofcases,earningthedistinctionof"ExcellentCaseforCarbonPeakingandCarbonNeutrality."

Best ESGAward

利益相关方

StakeholdersStakeholder ConcernsKey Points for Fulfilling CSR in 2023Shareholders

?Compliance management??Risk management and control?Profitability

?Compliancetrainingandanti-corruptiontrainingplancompletionrate100%?Convened2shareholdermeetingsand10boardmeetings?Riskmanagementtraining2times?Thesigningrateof"LetterofIntegrityandSelf-DisciplineCommitment"was

100%

?Netprofitattributabletoshareholdersin2023increasedby31.26%year-on-

year

Clients

?Providing quality products and

services?Protecting consumer rights andinterests?Compliance and responsiblemarketing?R&D innovation?Intellectual property protection

?AsofDecember31,2023,thecompanyhadobtainedatotalof707currently

validpatentauthorizations(including149inventionpatents),898softwareworks,and6exclusiverightstointegratedcircuitlayoutdesign?Throughresponsiblesupplychainmanagement,responsibleproductionand

responsiblemarketing,wecontinuedtoimprovecustomersatisfactionandaccumulateagoodmarketreputation.

Employees

?Protecting employee’s rights andinterests

?Providing training and

development platform foremployees?Caring for employees’lives

?100%employeelaborcontractsigningrate?Intermsofdemocraticmanagement,theLaborUnionfullyprotectedthe

legitimaterightsandinterestsofemployees?TostrengthenPartybuilding,withtheapprovalofthePartyCommitteeof

ChangshaHigh-techZone,HunanProvince,theWillfarInformationPartyBranchwasofficiallyupgradedtothePartyCommitteeonSeptember19,2022?Employeebenefitsenriched?Employeetrainingandpromotionmechanismhelpedemployeesrealizetheirvalue

?Employeehealthprotectionstrengthened

Government

?Compliance management??Paying taxes according to law?Leading the healthy

development of the industry

?Thecompanypaidtaxesinaccordancewiththelawthroughouttheyear.In2023,thecompany'stotaltaxpaymentwas197millionyuan.Sinceitslisting,thecompanyhaspaidatotalof620millionyuanintaxes,withnotaxevasionincidents.

?"Measurementandcontrolsystemanditsmeasurementandcontrolmodule

fordistributionautomationterminals"wonthe2023ElectricPowerTechnologyInnovationAward

Partners?Exchange and cooperation

?InvitedtoparticipateinmajorindustryeventssuchastheNewPowerSystemTechnologyInnovationAllianceCouncilandNewEnergyActiveSupportTechnologySymposium,the10thChinaElectronicsSummitForumwiththethemeof"TechnologicalIntegration·IndustrialEcology",andgainedexperience?The"IntelligentPowerBigDataIntegratedAnalysisPlatformResearchandDevelopmentandEngineeringApplicationProject"jointlycreatedwithGuangdongPowerGrid,TsinghuaUniversity,etc.wonthefirstprizeforscientificandtechnologicalprogress.?SubsidiaryZhuhaiZhonghuiwasselectedintothelistofsmartmanufacturing

ecologicalpartnersinGuangdongProvince

Suppliers

?Fair play?Supply chain sustainability

●Anti-bribery

?Tenderingprocesseswasstreamlinedthroughanintegratedinformationsystemtoensurestandardizedprocedures,seamlessworkflows,utmosttransparencyoftendering

?Adoptingsupplierauditprocedures,suppliermanagementregulations,qualityagreementsnegotiatedandestablishedwithsuppliers,andsupplierevaluationmethods,etc.Society

?Information disclosure and

transparency?News interview?Visit and exchange

?CompanynewsdisplayedthroughofficialWeiboandofficialwebsite?112dynamicarticlespublishedtostrengthencommunicationwiththepublic

GuidedbytheShanghaiUnitedMediaGroupandorganizedbyCailianPressGroup,the"4thEliteSecretarytotheBoardSelectionofthe'Luanlu'Series,2022"invitedauthoritiesfromassociationorganizations,securitiesfirms'researchinstitutes,investmentbankingexperts,andacademicinstitutionstoselecteligiblelistedcompanies.WillfarInformation,withitsoutstandingperformanceinsocialresponsibility,corporategovernance,andtechnologicalinnovation,washonoredwiththe"BestESGAward."

Excellent Case for

Carbon Peakingand Carbon

Neutrality

AsoneoftheearliestdomesticenterprisesdedicatedtothefieldofEnergyInternet,WillfarInformationplacesgreatimportanceonESGwork,consistentlyupholdingthebusinesstenetof"Sincerity,Precision,andHarmoniousBenefit-sharing"andintegratingESGprinciplesintomajorstrategicdecisionsanddailyoperationsofthecompany.

SSE STAR Market ESG IndexThisindexreflectstheoverallperformanceof

listedsecuritiesfromSTARMarketcompanieswithbetter

ESGperformance,consideringfactorssuchas

marketcapitalizationcoverage,investmentcapacity,and

ESGevaluations.Thelatestsampleforthisindexincludes

securitiesfromtheSTAR50Indexsampleand

securitiesfromtheSTAR100Indexsample,with

allsampleshavinganESGratingofAorhigher.

SSE STAR Market 100 Index (Code: 588190)TheSTAR100Indexselects100mid-capsecurities

withgoodliquidityfromtheSTARMarket,differentiating

itselffromtheSTAR50Index,whichfocusesonlarge-

capsecurities,thusfurtherenrichingthesize-based

indexsystemoftheSTARMarket.

SSESelectSTARMarketGrowthMomentum

StrategyIndex(Code:950260)selectsthetop50

listed

securitiesfromSTARMarketcompaniesbased

on

comprehensiveperformanceinrevenuegrowthrate

and

momentumoverthepastyear,reflectingthe

overall

performanceofSTARMarketcompanieswithbothgrowthcharacteristicsandmomentumeffects.

SSE Buyback 50 IndexThisindexselectsthetop50listedsecuritieswith

high

buybackratiosasitssample,reflectingthe

overall

performanceofcompanieswithhighbuybackratios.

WillfarInformation'sinclusionintheSSESTARMarketESGIndexandSSESelectSTARMarketGrowthMomentum50StrategyIndexrepresentsanotherhighrecognitionofthecompany'sESGperformance,growthcharacteristics,andmomentumeffects.Sinceitslisting,thecompanyhasachieveddualgrowthinannualrevenuesandnetprofitseveryyear,withacompoundannualgrowthrateof15.65%forrevenuesand24.68%fornetprofits.

Thecompanyadherestovaluecreationasitscorewhileplacingsignificantemphasisoninvestorreturns.AftersuccessfullylistingontheSTARMarketonJanuary21,2020,raisingnetproceedsof610millionyuan,thecompanyhasinvestedallfundsintoR&Dinnovationandcapacityenhancement,resultinginsteadyandrobustgrowthinoperatingperformance.Sinceitslisting,thecompanyhascumulativelydistributedcashdividendsof490millionyuan,andin2023,itplanstodistributeacashdividendof4.3yuanper10shares(inclusiveoftax),withanestimatedtotaldistributionof210millionyuan.Bythen,thecompanyisexpectedtohavecumulativelydistributedcashdividendsof700millionyuan,exceedingtheamountraisedthroughitsIPO.Thecompanyplanstoimplementadividendpayoutratioof40%forFY2024,substantivelyrewardinginvestorsthroughaction.

Movingforward,WillfarInformationwillcontinuetobeguidedbythe"DualCarbon"strategy,activelycontributingtotheglobaldigitalizationofcitiesandgreen,low-carbondevelopment,creatingvalueforinvestors,andpromotingthehealthy,stable,andorderlydevelopmentoftheSTARMarket.

Initial Identification of Sustainability TopicsConductingpolicyresearch,reviewingthecompany'sownbusinessoperations,benchmarkingagainstindustrypeers,andconsultingwithexpertstoidentifymaterialsustainabilitytopics

CommunicationwithInternalStakeholdersEngagingininternalcommunicationacrossdepartmentswithinthecompanytounderstandinternalconcerns,identifyingbothactualandpotentialimpactsassociatedwiththesepoints

CommunicationwithExternalStakeholders

Compilingminutesfromcommunicationswithexternalstakeholderssuchasinvestors,suppliers,andmedia,organizingtheirdemandsandconcerns,andassessingtheactualandpotentialimpactsofthesepointsAssessmentofImportanceandPriorityofSustainabilityTopicsMaterialtopicsdeterminedbasedoninterviews,stakeholderratings,andexpertjudgments

Willfar Information Included the SSE STAR Market ESG Index, SSE Select STARMarket Growth Momentum 50 Strategy Index, SSE STAR Market 100 Index, and SSE

Buyback 50 IndexTheShanghaiStockExchange(SSE)andChinaSecuritiesIndexCo.,Ltd.recentlyannouncedthattheywillofficiallylaunchtheSSESTARMarketESGIndexonMarch21standtheSSESelectSTARMarketGrowthMomentum50StrategyIndexandSSESmartChoiceSTARMarketLeaderStrategyIndexonMarch4th.TheseindicesaimtopromptlyreflecttheperformanceoflistedsecuritiesontheSTARMarketandfurtherenrichtheSTARMarketindexsystem.Intheinitiallist,WillfarInformation,withitsexceptionalESGperformanceandacombinationofgrowthcharacteristicsandmomentumeffects,hasbeenselectedfortheSSESTARMarketESGIndex,SSESelectSTARMarketGrowthMomentum50StrategyIndex,SSESTARMarket100Index,andSSEBuyback50Index.

议题管理

绿色赋能，助力以新能源为主体的新型电力系统建设

公益活动情况积极践行公益活动

65-66

供应链管理建立并持续完善供应链管理制度，优化供应链管理

员工权益保护畅通晋升渠道，职业安全保障，确保职工权益

废弃物和排放物管理绿色生产，严格遵守废弃物和排放物管理制度

城市综合能源管理提供多元化的解决方案，助力数智城市建设

消费者权益保护保护客户隐私，持续提升客户满意度

Analysis of Sustainability Topics

气候变化推动节能减排，倡导绿色环保

可持续发展议题

电力清洁化发展

践行绿色经营、绿色办公，推动节能减排，关键数据持续跟踪管理

投资者权益保护保障投资者权益

坚持创新驱动、创新人才培养、行业创新合作

全球化销售体系，广泛服务全球客户多元化培训，启动员工股权激励具有竞争力的薪酬，丰富的福利

平等雇佣，杜绝童工和歧视行为

优化治理架构，强化制度保障

确保产品质量保持行业领先

资源使用和能耗管理

持续助力乡村振兴

员工福利和薪酬员工培养和激励

强化投资者沟通

客户服务体系

助力乡村振兴

公司治理情况

自主创新情况

投资者沟通

产品质量廉政情况雇佣情况

廉政建设

Sustainability TopicsManagement of TopicsClean power developmentGreen empowerment helps the construction of new power systems

with new energy as the main bodyIntegrated urban energymanagement

Provide diversified solutions to assist the construction of digital smart

citiesIndependent innovationAdhere to innovation-driven, innovative talent training, and industry

innovation cooperationClimate changePromote energy conservation and emission reduction and advocate

green environmental protectionResource use and energyconsumption management

Practice green operations and green offices, promote energy

conservation and emission reduction, and continue to track and

manage key dataWaste and emissionsmanagement

Green production and strict compliance with waste and emission

management systemsCorporate governanceA wide range of products and solutions contribute to the construction

of advanced power systemsInvestor rights protectionProtect investors’rights and interestsInvestor communicationProtect investors’rights and interestsConsumer rights protectionProtect customer privacy and continuously improve customer

satisfactionEmployee benefits andcompensation

Competitive salary, rich benefitsProtection of employee rightsand interests

Smooth promotion channels, ensure occupational safety, and ensure

employee rights and interestsEmployee development andmotivation

Diversity training and launch of employee equity incentivesProduct qualityEnsure product quality remains industry leadingCustomer service systemGlobal sales system, extensively serving global customersIntegrity statusClean government constructionEmployment statusEqual employment and elimination of child labor and discriminationSupply chain managementEstablish and continue to improve the supply chain management

system and optimize supply chain managementSupporting rural revitalizationContinue to support rural revitalizationPublic welfare activitiesActively carry out public welfare activities

●Integrated Urban Energy Management

●Employee Development and Motivation

●Clean power development

●Public Welfare Activities ●Resource Use & Energy Consumption

●Employment Practices

EnvironmentSocial ResponsibilityCorporate GovernanceHigh

温室气体单位排放量2.8 1.62 每百万元年收入??量/ 176,942 吨

合规培训、反腐败培训计划完成率100 100 %

安全?产投?/ 63.24 万元

环保投入/ 10.83 万元

温室?体排放量/ 3,615.16 tCO2

《廉洁与?律承诺书》签订率100 100 %

纳税总额/ 1.97 亿元

电能单位排放量3,228 2,473 千瓦时/百万元年收入??单位排放量100.00 79.5 吨/百万元年收入

安全?产事故数0 0 起

Importance to Economic, Social, and Environmental Impact

Sustainability Indicators

Matrix of Sustainability Topics

Importance to Company Value

●Customer Service System

●Investor Communication

●Corporate Governance

2023年度

5,503,055.5

目标值

千瓦时

67-68

单位名称

LowHigh

电能/

.

..

.

NameTarget value2023UnitGreenhouse gas emissions/3,615.16tCO

Greenhouse gas emissions per

unit of revenue

2.81.62

Per million yuan of

annual revenueWater consumption

/176,942TonDischarge per unit of water

consumption

100.0079.5

tons /million yuan of

annual revenueElectric energy

/5,503,055.5KWHEmissions per unit of electrical

energy

3,2282,473

kWh /million yuan of

annual revenueEnvironmental protection

investment

/10.8310,000 yuanTotal tax paid

/1.97100 million yuanCompliance and anti-corruption

training completion rate

100100%"Letter of Integrity and Self-Discipline Commitment" signing

rate

100100%Investment in work safety

/63.2410,000 yuanNumber of production accidents

●Waste and emissions management

●Climate Change

●Product Quality and Safety

●Independent Innovation

●Consumer rights protection

●Supply Chain Management

●Integrity Status

●Protection of Employee

Rights and Interests

●Employee Benefits &

Compensation

●Supporting Rural Revitalization

●Investor Rights Protection

Digitization is the most important trend in various industries in the 21st century. Withcontinuous advancements in energy technology and productivity, and the country'sfirm commitment to the "Dual Carbon" strategy, a profound energy revolution isunderway, presenting numerous opportunities and challenges for the energy industry.The company has formulated multiple strategies to better seize these opportunities,while also addressing risks, particularly financial risks. Although the debtors of thecompany's accounts receivable are primarily creditworthy and financially strongpower and water companies, with good recovery guarantees for accounts receivableand a relatively low risk of bad debt losses, the company has already established aprudent bad debt provision policy in line with accounting standards. However, if thecompany's accounts receivable continue to rise significantly, clients experiencedeteriorating financial conditions or are unable to make payments on time, or thecompany faces tighter external funding conditions, it could face considerableoperating capital pressure, negatively impacting the company's production andoperations and financial situation. To address this, the company has imposed higherrequirements on aspects such as strategic planning, organizational structure, internalcontrol, operational management, and financial management, striving to mitigate theimpact of these risks.

69-70

Governance StructureThecompanyhasestablishedandperfecteditsgovernancestructure.Shareholders'meetings,theboardofdirectors,thesupervisoryboard,andseniormanagementcoordinateandcheckandbalanceeachother,withtheboardsecretaryandindependentdirectorsdiligentlyfulfillingtheirduties,effectivelyenhancingtheimpartialityandscientificnatureofdecision-making,ensuringthecompany'slawfulmanagementandstandardizedoperations.Thecompany'sboardofdirectorshasformedaStrategic&ESGCommittee,AuditCommittee,NominationCommittee,andRemuneration&EvaluationCommittee,withmembersconfirmedthroughrigorousprocedures,playingasignificantroleinthecompany'soperationsandmanagement.Additionally,correspondingrulessuchasthe'Strategic&ESGCommitteeWorkingRules','AuditCommitteeWorkingRules','NominationCommitteeWorkingRules',and'Remuneration&EvaluationCommitteeWorkingRules'havebeenformulated.

Tobetterconductthecompany'sESGworkandoptimizethetop-leveldesignofESGmanagement,the'BoardofDirectorsStrategicCommittee'hasbeenrenamedthe'BoardofDirectorsStrategic&ESGCommittee',responsibleforoverseeingandmanagingthecompany'ssustainabledevelopmentandrelatedenvironmental,social,andcorporategovernance(ESG)matters.Underthe'BoardofDirectorsStrategic&ESGCommittee',a'SustainableDevelopmentESGWorkingGroup'hasbeenestablishedtoleadandmanageESGwork,coordinatingrelevantbusinessdepartmentsandfunctionaldepartmentswithinthecompanytocarryoutESG-relatedtasks.

Independentdirectorsarethepromotersofoptimizationinthecompany'sgovernancestructure,supervisorsofthecompany'sstandardizedoperations,andprotectorsoftheinterestsofminorityshareholders.Theboardofdirectorsconscientiouslyperformsitsfunctions,strictlyabidingbyrelevantlawsandregulationssuchasthe'CompanyLaw'andtheprovisionsofthe'ArticlesofAssociation'and'BoardMeetingRules'.Asystemofindependentdirectorshasbeenestablished.In2023,thecompany'sindependentdirectors,inaccordancewithnationallawsandregulationsandtheprovisionsofthe'ArticlesofAssociation'and'IndependentDirectorWorkSystem',diligentlyfulfilledtheirduties,expressingopinionsonmattersrequiringindependentdirectoropinions,proposingrelevantopinionsandsuggestionsonthecompany'soperationalmanagementaffairs,playinganactiveroleinimprovingthecompany'sgovernancestructureandstandardizingitsoperations.Thecompany'sboardofdirectorsconsistsof9directors,holding2shareholders'meetings,10boardmeetings,and9supervisoryboardmeetingsthroughouttheyear.

高级管理人员

女性占比22.22% 66.67% 100% 42.86%

Committee

Remuneration &EvaluationCommittee

SeniorManagementShareholders'

Meeting

NominationBoard of Directors

Supervisory

Board

Strategic & ESGCommittee

Board of Directors

Audit Committee

其中：女性2 22 6

Operation of the General Meeting of Shareholders, Boardof Directors and Supervisory Board

Organizational Structure

Composition of Personnel

监事会

董事会

类别总人数

合计

CategoryBoard of DirectorsSupervisory boardSenior managementTotal

Total number of people93214Among them: women2226Proportion of women22.22%66.67%100%42.86%

Keeping Pace with Policy Developments to Ensure Complianceand Efficiency

Updatingandreinforcingtheimplementationofnewsystems:Atthe9thmeetingof

the3rdBoardofDirectors,thecompanyapprovedrevisionstotheArticlesof

Association,IndependentDirectorWorkSystem,ExternalGuaranteeManagementSystem,

IntercompanyTransactionImplementationRules,and5othergovernancesystemsinlightofthe

listedcompanygovernancerulesissuedbytheCSRCandSSEin2023.Thecompanywill

strengtheninternaltraining,communication,andprocessexecutionchecksfortherevised

systems,enhancingtheireffectiveimplementation.

Thecompanywillalsoestablishamechanismforregularmonitoringofnew

regulatoryrequirements,ensuringaswiftresponsetoregulatorydevelopments.Following

thepromulgationofnewregulationsinthecapitalmarkets,thecompanywilltimelyrevise

andapproverelevantinternalsystemsinaccordancewithrequirements.

Empowering Key Roles to Enhance Governance Capabilities

"Keyminorities"playavitalroleincorporategovernance.Thecompanywill:1)

providefeedbackandcommunicatelegallymandatedtrainingorganizedbycapitalmarketregulators

;

2)fullyleverageresourcesfromregulatoryplatformssuchastheCSRC,SSE,PujiangLecture

ChinaAssociationforPublicCompanies,andCapitalMarketsCollege,organizingonlineand

offline

trainingfor"keyminorities"andthecompany'smanagementteam,ensuringtheystayinformed

thelatestlawsandregulations,enhancingtheirprofessionalskillsandcomplianceknowledge

reserves,

anddrivinganoverallimprovementinthecompany'sgovernancelevel.

Internal Control & Management Mechanism

Duringthereportingperiod,thecompanyestablishedaninternalcontrolsystemtailored

itsoperationalanddevelopmentalneedsinaccordancewithrelevantnationalrequirements

and

guidelines,streamliningandoptimizingrelatedmanagementsystemsandprocessesto

thecompany'sriskpreventioncapabilitiesandstandardizeitsoperations.

Duringthereportingperiod,thecompanystrictlyadheredtotheprovisionsofthe

Articles

ofAssociation,theInsiderInformationRegistrantManagementSystem,andother

regulations,diligentlycarryingoutconfidentialitymeasuresbeforeinformationdisclosureandtheregistrationofinsiderinformation.

Integrating Regulatory Dynamics to Strengthen Foundations forDevelopmentTomaintainclosealignmentwithregulatorypolicies,thecompanyestablishes

relevant

a

continuoustrackingandfeedbackmechanismforregulatorydynamics,collecting,

analyzing,

andtimelytransmittingthelatestregulatoryinformation.Itcompilesandinterpretsthe

newest

regulatorypolicies,marketrules,andrelevantlegalandregulatoryinformationona

quarterly

basis,compilingthemintoabookletforthecompany's"keyminority"personnel

.

Simultaneously,itdisseminatesthechangesinregulatorypoliciesandtheirimpacton

the

company'sbusinesstothemanagementteam,familiarizingthemwiththeirresponsibilities

in

informationdisclosure,reportingofsignificantevents,andinsiderinformation

management,

fosteringacompliancemindsetthroughouttheorganization,guidingthecompany

towards

steadydevelopmentonafoundationofcompliance.

Risk Control & ManagementInrecentyears,thecompanyhasconsistentlyupheldsoundgovernance,promptlyupdatingandrevising

relevantsystems,continuallyimprovingitsinternalmanagementmechanismstoensurecomplianceandoptimized

governance,safeguardingtherightsandinterestsofsmallandmedium-sizedinvestors.InaccordancewiththeIndependent

DirectorManagementMeasures,SupervisionGuidelineNo.3forListedCompanies-CashDividendsofListed

Companies,GuidelinesfortheArticlesofAssociationofListedCompanies,andotherrelevantlawsandregulations,the

companyupdatedandrevised12internalsystemsincludingtheArticlesofAssociation,RulesofProcedurefor

Shareholders'Meetings,RulesofProcedureforSupervisors'Meetings,IndependentDirectorWorkSystem,External

GuaranteeManagementSystem,InformationDisclosureManagementSystem,amongothers,strengtheningthe

rights,responsibilities,andobligationsofindependentdirectors,furtherstandardizingthecorporategovernancestructure,

activelyfulfillingsocialresponsibilities,andprotectingthelegitimaterightsandinterestsofinvestors.Concurrently,the

companyconductedacomprehensiveexaminationandupgradeofitsgovernancestructure,establishingamore

efficientmanagementsystemandmoremarket-orientedmechanisms,conducting2riskmanagementtrainingsannually.

71-72

Risk AnalysisRiskofUnprofitabilityorSignificantDeclineinPerformanceFromthecompany'sfinancialsituation,thecompanyhasmaintainedacontinuousprofit-makingstatusforseveralyears,withsteadyyear-on-yeargrowth.In2023,thecompany'soperatingrevenuewas222,524.9millionyuan,andthenetprofitattributabletoshareholderswas52,525.99millionyuan.In2023,thenetprofitattributabletoshareholdersincreasedby

31.26%year-on-year,andthenetcashflowgeneratedfromoperatingactivitiesincreasedby62.21%year-on-year.

CoreCompetitivenessRiskTheIoTindustrybenefitsfromtherapiditerationofIoTtechnologies,leadingtorapiddevelopmentofnewproducts,technologies,andapplicationmarkets.Asdownstreamapplicationscenarioscontinuetodiversify,manylargeenterprisesandstartupsareactivelyenteringthefieldsofsmartcitiesandenergyinternet,intensifyingmarketcompetition.IfthecompanycannotcontinuouslyinnovateandconductR&Donnewtechnologiesinresponsetomarketchanges,continuouslystrengtheningitscorecompetitiveness,itmayplacethecompanyatadisadvantageintheincreasinglyfiercemarketcompetition,potentiallyhavingacertainadverseimpactonthecompany'soperatingperformance.OperatingRisksInrecentyears,drivenbyaseriesofdomesticandinternationalpoliciesandthedevelopmentofnewtechnologies,theIoTindustryinwhichthecompanyoperateshascontinuedtogrow,withthecompany'soveralloperatingscalefurtherexpanding.Thisplaceshigherdemandsonthecompanyinaspectssuchasstrategicplanning,organizationalstructure,internalcontrol,operationalmanagement,andfinancialmanagement.Ifthecompany'smanagementcannoteffectivelyenhancemanagementcapabilitiesandoptimizemanagementsystems,itmayresultinthecompany'smanagementsystembeingunabletofullyadapttotherapidexpansionofitsbusinessscale,causingadverseeffectsonthecompany'sfutureoperationsandsustainedprofitability.

IndustryRisks

TheindustryauthoritiesrelevanttotheIoTindustryinwhichthecompanyoperatesmainlyincludetheNationalDevelopmentandReformCommission,MinistryofIndustryandInformationTechnology,StateAdministrationforMarketRegulation,MinistryofHousingandUrban-RuralDevelopment,andspecificapplicationindustryauthorities,involvingnumerouslawsandregulations.Currently,thecompanystrictlyconductsproductionandoperationsinaccordancewithindustrylaws,regulations,andindustrystandards.Ifindustrydevelopmentfallsshortofexpectationsormarketdemanddeclines,itwillleadtoaslowdowninthegrowthofthecompany'ssub-sector,thusaffectingthecompany'srapidgrowth.FinancialRisks

Althoughthedebtorsofthecompany'saccountsreceivableareprimarilycreditworthyandfinanciallystrongpowerandwatercompanies,withgoodrecoveryguaranteesforaccountsreceivableandarelativelylowriskofbaddebtlosses,thecompanyhasalreadyestablishedaprudentbaddebtprovisionpolicyinlinewithaccountingstandards.However,ifthecompany'saccountsreceivablecontinuetorisesignificantly,clientsexperiencedeterioratingfinancialconditionsorareunabletomakepaymentsontime,orthecompanyfacestighterexternalfundingconditions,itcouldfaceconsiderableoperatingcapitalpressure,negativelyimpactingthecompany'sproductionandoperationsandfinancialsituation.Mostoverseasprojectssignedbythecompanyuseforeigncurrenciesassettlementcurrencies.Withtheexpansionofthecompany'soverseasbusiness,fluctuationsintheRMBexchangeratewillhaveacertainimpactonthecompany'soperatingresults.Macro-environmentalRisksThecompany'sindustryiscloselylinkedtonationalmacroeconomicpoliciesandindustrialpolicies.Cyclicalfluctuationsinthenationaleconomy,changesinpolicydirectionregardingindustrydevelopment,etc.,mayaffectthecompany'sproductionandoperations.

Regarding Shareholders and Shareholders' Meetings:

Duringthereportingperiod,thecompanystrictlycompliedwithrelevantlawsandregulationsandtherequirementsofthe"ArticlesofAssociation"andthe"RulesofProcedureforShareholders'MeetingsofWillfarInformationTechnologyCo.,Ltd.",conveningandholdingshareholders'meetingsinastandardizedmanner,conductingpropervotingonmattersunderconsiderationbytheshareholders'meeting,ensuringallshareholdersfullyexercisetheirlegalrights.Duringthereportingperiod,thecompanyheldatotalof2shareholders'meetings,convenedbytheboardofdirectors.

Regarding Controlling Shareholders and Listed Companies:

Duringthereportingperiod,thecontrollingshareholderofthecompanystrictlyadheredtorelevantlawsandregulations,regulatingtheirbehavior,exercisingshareholderrightslawfullythroughshareholders'meetings,withoutdirectlyorindirectlyinterferingwiththecompany'sdecision-makingandoperationalactivitiesbeyondthescopeoftheshareholders'meeting.Thecompanydidnotprovideguarantees,financialassistance,ornon-operationalfundoccupationforthecontrollingshareholderorotherrelatedparties,nordiditengageinanyactionsdetrimentaltotheinterestsofthecompanyorothershareholders.

Regarding Directors and the Board of Directors:

Duringthereportingperiod,thecompany'sboardofdirectorsconsistedof9directors,including3independentdirectors,withthenumberandcompositionoftheboardmeetingtherequirementsoflaws,regulations,andthe"ArticlesofAssociation".Alldirectorsdiligentlyattendedboardmeetingsandparticipatedinshareholders'meetings,continuouslydeepeningtheirunderstandingofrelevantlawsandregulations,fulfillingtheirrespectiveresponsibilitieswithintegrity,diligence,anddedication.Theboardofdirectorsstrictlyfollowedthe"ArticlesofAssociation",the"RulesofProcedureforBoardMeetingsofWillfarInformationTechnologyCo.,Ltd.",andotherrelevantregulationsinconveningandholdingboardmeetings,executingshareholders'meetingresolutions,andexercisingtheirpowersaccordingtothelaw.TheboardofdirectorshasestablishedsubordinatecommitteesincludingtheAuditCommittee,theStrategic&ESGCommittee,theNominationCommittee,andtheRemuneration&EvaluationCommittee,whichareofgreatsignificanceinenhancingthecompany'smanagementandoperationalcapabilitiesandensuringthescientificnatureofinvestmentdecisions.Duringthereportingperiod,theboardofdirectorsheld10meetings,examiningandapprovingmatterssuchastheannualreport.

InJune2023,thecompanycompletedtheboardofdirectors're-election,forminganinternationalboardwithdiverseprofessionalbackgroundsandcomplementaryskillsets.Eachboardmemberpossessesextensiveexperienceinareassuchasenterprisemanagement,businessoperations,technicalexpertise,riskcompliance,finance,andaudit&internalcontrol.Consideringthecompany'sneedforinternationaldevelopmentandthecharacteristicsoftheenergyIoTindustry,thecompanynotonlyrecruitedaprofessionalindependentdirectorcandidatefromtheaccountingfieldbutalsoappointedascholarfromthefieldofelectricalengineeringasanindependentdirector,alongwithaSingaporeaneconomistandfinancialexpertasanindependentdirector.Regarding Supervisors and the Supervisory Board:

Duringthereportingperiod,thecompany'ssupervisoryboardconsistedof3supervisors,withthenumberandcompositionoftheboardinlinewiththerequirementsoflaws,regulations,andthe"ArticlesofAssociation".Thecompanystrictlyfollowedthe"CompanyLaw",the"RulesofProcedureforSupervisors'MeetingsofWillfarInformationTechnologyCo.,Ltd.",andotherrelevantregulations,standardizingtheconvening,holding,andvotingproceduresofthesupervisoryboard,diligentlyfulfillingitsdutiesandattendingcompanyboardmeetingsandshareholders'meetings.Thecompany'ssupervisoryboardcanindependentlyandeffectivelysupervisethelegalityandcomplianceofthecompany'sfinancialsandthedutiesperformedbythecompany'sdirectorsandseniormanagement,safeguardingthelegitimaterightsandinterestsofthecompanyanditsshareholders.

Duringthereportingperiod,thecompanystrictlyadheredtotherequirementsoflawsandregulationssuchasthe"CompanyLawofthePeople'sRepublicofChina",the"SecuritiesLawofthePeople'sRepublicofChina",the"GuidelinesfortheGovernanceofListedCompanies",the"ListingRulesforSci-TechInnovationBoardStocksoftheShanghaiStockExchange",the"Self-RegulatoryGuidelinesNo.1forSci-TechInnovationBoardListedCompanies–StandardizedOperation"andothernormativedocuments,aswellasthe"ArticlesofAssociationofWillfarInformationTechnologyCo.,Ltd."(hereinafterreferredtoasthe"ArticlesofAssociation"),continuouslyimprovingitscorporategovernancestructure,establishingandperfectingitsinternalcontrolsystem,furtherpromotingthecompany'sstandardizedoperation,andenhancingitsgovernancelevel.Duringthereportingperiod,thecompanyoperatedinahighlyregulatedmannerwithstrongindependence,compliantinformationdisclosure,anditsactualgovernancesituationmettherequirementsofthenormativedocumentsgoverninglistedcompanygovernance.Specificdetailsareasfollows:

ExplanationofGovernance-RelatedMatters

73-74

ContinuousMonitoringofPoliciesandRegulations:Continuouslytrackrelevantlawsandregulationsrelatedtocarbonneutrality,conducttrainingtounderstandthecontentofregulations,regularlyorganizecompliancereviews,andimplementgreenandlow-carbonstrategies.Countermeasures:

Information Disclosure

Thecompanystrictlycomplieswiththe"ListingRulesforSci-TechInnovationBoardStocksoftheShanghaiStockExchange",the"Self-RegulatoryGuidelinesNo.1forSci-TechInnovationBoardListedCompanies–StandardizedOperation",the"ArticlesofAssociation",andotherrelevantregulations,fulfillingitslegalobligationtodiscloseinformation.Duringthereportingperiod,thecompanytimelydisclosedperiodicreportsandinterimannouncements.Thecompanyensuresthatinformationisdisclosedtruthfully,accurately,completely,andpromptly,guaranteeingtimelypublicaccess.IthasalsoestablishedandimproveditsESGinformationdisclosuresystem,activelypromotingannualESGdisclosures.

IncreasedInvestmentinTechnologicalInnovation:Strengthenresearchongreentechnologiesandtheestablishmentofgreenstandards,enhancingthecompany'scapacityforinnovationingreenproductsandgreenmanufacturingprocesses;deepentheintegrationofindustry,academia,andresearch,continuouslyimprovingtheinnovationincentivemechanism,buildingcoretechnologicalbreakthroughsandleadingcapabilities.

PositioninginGreenandLow-CarbonTechnologies:Strengtheninvestmentsingreensustainabilitystrategies,advancingresearchongreenproductsandgreentechnologystandards,cateringtothegrowinggreenconsumptiondemandsofmarketsandmodernconsumergroups

EnhancingTransparencyinInformationDisclosure:Establishadiversifieddisclosuremechanism,treatingclimatechangeasacentralissue,communicatingthroughvariouschannelsandplatformswithstakeholders;strengthencomplianceconstruction,ensuringthecomplianceofinformationdisclosure

Thecompanyoperatesmajorfundraisingprojectsinastandardizedmanner,strictlyabidingbyrelevantlawsandregulationsinfulfillingdisclosureobligationsforsuchprojects.Thecompanyhasformulatedthe"FundraisingProceedsManagementSystemofWillfarInformationTechnologyCo.,Ltd.",specifyingdetailedprovisionsonthestorage,usage,andmanagementoffundraisingproceeds.Thecompanymanagesfundraisingproceedsinaccordancewiththeseregulations,utilizingtemporarilyidleproceedsinarationalmannerforcashmanagement,withafocusonprotectingsmallandmedium-sizedinvestors.InAugust2023,thecompany'sfundraisingprojectreachedcompletion,withthecompanyorganizingthecollectionandreviewofrelevantmaterials,successfullycompletingprojectacceptanceanddisclosurework.

Management of Other Risks

1.RisksofPolicy/Legal/RegulatoryAdjustments:Undertheconstraintsofcarbonpeakingandcarbonneutralitygoals,

changesinrelevantlawsandregulationsconcerningindustrialcirculareconomy,greenproductdesign,pollutioncontrolinproduction,andtheuseofcleanenergymayincreasethecompany'scompliancecosts.

3.MarketVolatilityRisk:Withthegrowingemphasisonsustainability,consumermarketsareincreasinglyawareof

anddemandinggreenproducts.Failuretograspthisshiftindirectioncouldresultinthelossofmarketshare.

4.Reputation Risk: Stakeholders' awareness of climate risks and opportunities is increasing. Should the company adopt a wait-and-

see attitude toward climate change or fail to respond to stakeholders' concerns, it could impact the company's reputation.

2.RiskofTechnologicalIterationandInnovation:Researchonenergyconservationandenvironmentalprotection

technologiesandenergy-savingtechnologicaltransformationsmayincreasethecompany'sR&Dcost.Technologicalchangesandinnovationsingreenproductdesignmayleavethecompanyvulnerabletosetbacksinitscorecompetitiveness.

Duringthereportingperiod,thecompanyscrupulouslyobservedtheprovisionsofitsArticlesofAssociation,theRegistration&ManagementSystemforPersonsFamiliarwithInsiderInformation,andrelatedregulations,diligentlyensuringconfidentialitypriortoinformationdisclosureanddiligentlyconductingtheregistrationofsuchpersons.

Registration & Management of Persons Familiar with InsiderInformationRegarding Fundraising Management

75-76

Countermeasures:

Countermeasures:

Countermeasures:

Visualization of Information

DisclosureWhilereleasingperiodicreports,thecompanyemploysvisualformatssuchasperformancebriefings,graphicsummaries,andshortvideostointerpretbothperiodicreportsandinterimannouncements.Theseengaging,intuitivemethodshelpinvestorsbetterunderstandthecompany'soperatingresults,financialcondition,anddevelopmentstrategies.

Simplification of Technical

TerminologyWhendraftingannouncements,thecompanyendeavorstoavoidoverlytechnicalterms,usingeasilyunderstandablelanguagetoconveyinformation,reducingthereadingdifficultyforinvestors.

Auxiliary Explanations in

Graphical Format

Periodicreportswillincorporateadditionalgraphicalaidssuchaschartsanddatacomparisons,makinginformationclearerandeasiertocomprehend.

Internationalization of Information

DisclosureInternationalizationofinformationdisclosureisapartofthecompany'scommitmenttointernationalizationinthecapitalmarket.Thecompanyreleasesbilingual(ChineseandEnglish)versionsofone-pagesummariesofperiodicreports,environmental,social,andgovernance(ESG)socialresponsibilityreports,andactionplansforenhancingefficiencyandreturns.Thesepublicationsshowcasethecompany'sfinancialstatusandbusinessoperationstoglobalinvestors,facilitatingstrongerconnectionswithinternationalinvestorsanddemonstratingthecompany'scommitmentandeffortsinsustainabledevelopmentandsocialresponsibility.

Investor Relations ManagementThecompanyhasestablishedsystemsrelatedtoinvestorprotectionandinvestorrelationsmanagement,furtherrefiningthetwo-waycommunicationmechanismbetweenthecompanyandinvestors.Whilelisteningtoinvestors'suggestions,thecompanypromptlyconveystheserecommendationstotheboardofdirectorsandmanagement,contributingtotheimprovementofbusinessstrategiesandmaintainingarelationshipofmutualtrustandalignedinterestswithinvestors,continuouslyenhancinginvestorrelationsmanagementcapabilities.Establishingmultipleeffectivecommunicationchannelswithinvestors,thecompanyholdsannualperformancebriefingsessionsforperiodicreports,withthechairmanandpresidentleadingboardmembersandtechnicalprofessionalsinconductingonlineexchangeswithabroadrangeofinvestors.ThecontentsofSSEeInteractive,investorcalls,andemailsaremanagedandrecordeddailybydedicatedpersonnel,withpromptresponsesprovided.Thecompanyalsopaysattentiontoinvestorcommunicationplatformsfrequentedbysmallandmedium-sizedinvestors,suchasEastMoneyStockBar,Snowball,andFlush,respondingpromptlytoinvestors'requests.

Activelyaligningwithinternationalpracticesandraisingthe"internationalization"levelofinvestorrelations,thecompanystrengthenscommunicationwithoverseasinvestors,implementingthe"goglobal"strategy.OnMarch13,2023,thecompanywasofficiallyincludedinthelistofSSEConnecttargets,betterestablishinginvestmentchannelsforoverseasinvestors,furtherrefiningthecompany'sinvestorstructure,andenhancingitsinternationalprofile.

Compliance Training

Toimplementthe"OpinionsoftheStateCouncilonFurtherImprovingtheQualityofListedCompanies"andcontinuouslyenhancethecompany'soperationalstandardizationandimprovethequalityofinformationdisclosure,thecompanyorganizedmultiplecompliancetrainingsessionsin2023fordirectors,supervisors,andmanagement,attendedbytheCSRC,exchanges,andthelistedcompanyassociation.Internallearningmaterialsweredistributedtoreinforcethecomplianceawarenessofdirectors,supervisors,andmanagement,enhancingmanagementcapabilities,improvinggovernancelevels,comprehensivelypromotingthecompany'ssustained,stable,andhealthydevelopment,upholdingmarketfairness,andprotectinginvestorinterests.Throughtheseefforts,themanagementteamfurtherrefinedthecompany'sinternalcontrolsystem,optimizedthegovernancestructure,strengthenedsupervisoryresponsibilities,andcontinuouslyimprovedtheirfulfillmentofduties.

In 2023, the completion rate for compliance training and anti-corruption training programs was 100%, witha 100% signing rate for the "Letter of Integrity and Self-Discipline Commitment".

Thecompanyhasestablishedsuppliermanagementproceduresandanannualqualityreviewsystemforsuppliers,adoptingprinciplesoffairbidding,tenderprocurement,andqualityprioritizationindealingwithsuppliers.Tofurtherstandardizesuppliermanagementandenhancesupplychainquality,thecompanyemployssupplierauditguidelines,suppliermanagementregulations,qualityagreementsnegotiatedwithsuppliers,andsupplierevaluationmethodstoscientificallyassesssuppliers'qualifications,productionsites,technicalproficiency,andqualityassurancesystems.Duringthereportingperiod,thecompanydidnotdiscoveranycasesofviolationsoflawsandregulationsrelatedtobriberyandcorruption,norwerethereanyconcludedcorruptionlawsuitsagainstthecompanyoritsemployees.Additionally,thecompanyhasputinplacerelevantreportingmechanismsandwhistleblowerprotectionpolicies,makingthepreventionofcommercialbriberyandunfaircompetitionmorecomprehensive.

BasedontherelevantrulesandregulationsofChina'sAnti-MonopolyLaw,thecompanyhasmadeclearstipulationsandimplementedgovernanceintheareaofanti-monopoly,aimingtopromotethestandardized,healthy,andsustainabledevelopmentofthecompany'seconomyandtoopposemonopolies,fosteringafaircompetitiveenvironment.Duringthereportingperiod,thecompanydidnotencounteranycasesofviolationsoflawsandregulationsrelatedtoanti-monopolyandanti-unfaircompetition,norwerethereanyconcludedlawsuitsagainstthecompanyallegingunfaircompetitionpractices.

Thecompanyupholdsthebusinessphilosophyofoperatinglegallyandpayingtaxesinaccordancewiththelaw,strictlyobservingtaxlawsandregulations,diligentlyfulfillingtheresponsibilitiesandobligationsofcorporatecitizenstopaytaxeslawfully,whileactivelypromotingemploymentanddrivingeconomicdevelopment.In2023,thecompany'stotaltaxpaymentwas197millionyuan,withacumulativetaxpaymentof620millionyuansinceitslisting.There were no incidents of tax evasion or tax fraud during this period.

Tax Compliance

Anti-Monopoly

Fair Competition

Business Ethics

77-78

13-14

40% Cash Dividend Payout Ratio Proposed for

2024

In2024,thecompanywillfocusonlong-term,sustainabledevelopment,takingintoaccountthecompany'sactualsituation,strategicdevelopmentplans,andindustrytrends,toestablishascientific,continuous,andstablereturnplanandmechanismforinvestors,ensuringthecontinuityandstabilityoftheprofitdistributionpolicy.Itisplannedtosetacashdividendpayoutratioof40%for2024profits.

Introduction of the Company's First Employee

Share Ownership PlanThecompanyhaslauncheditsfirstemployeeshareownershipplanwithatotalof4millionshares.Theplanincludesalock-upperiod,withthesharesbeingreleasedinthreestagesuponreaching12,24,and36monthsrespectivelyfromthedatethetargetsharesaretransferredtotheemployeeshareownershipplan.Theproportionofsharesunlockedineachstageis40%,30%,and30%respectively.Theemployeeshareownershipplanalsoincorporatesindividualperformanceassessmentmetrics.Basedontheemployee'sevaluationscoreandcomprehensiveevaluationresults,aperformancegradeisdetermined.Whileprovidingampleincentivestoplanparticipants,thisalsogeneratescorrespondingconstraints,encouraginglong-termshareholdingandfocusingonthecompany'slong-termvalue,effectivelyaligningtheinterestsofholderswiththoseofthecompanyanditsshareholders.

Shared Responsibility and Benefits: Plans for Long-Term Equity Incentive Schemes over the Next Two

YearsInthefuture,tocontinuouslystrengthenthesharedresponsibilityandbenefitsconstraintbetweenmanagementandshareholders,thecompanyintendstoutilizeallrepurchasedsharesforlong-termequityincentives.Itplanstoimplement4millionsharesin2025and4.3148millionsharesin2026.Thiswillensurealong-termincentiveandconstraintmechanismforthecompany'smanagementteamandcorebusinessteam,promotingalignmentofinterestsandsharedbenefitsbetweenmanagementandallshareholders,ultimatelyenhancingtheoverallvalueofthecompany.

30% Increase in Per-Share Dividend Payout for 2023OnMarch21,2024,thecompanyhelditsannualgeneralmeetingtodeliberateonthedividendpayoutplanfor2023.Itproposedtodistributeacashdividendof4.3yuanper10shares(inclusiveoftax)toallshareholders,representinga30%year-on-yearincreaseinper-sharecashdividendpayouts,withatotaldistributionof210millionyuanincashdividends.Thusfar,thecompanyhascumulativelydistributed700millionyuanincashdividendssinceitslisting,exceedingtheamountraisedthroughtheinitialpublicoffering,demonstratingtangiblereturnstoinvestorsthroughactions.

WillfarInformationfocusesonvaluecreationinitsbusinessmanagementandattachesgreatimportancetoinvestorreturns.OnJanuary21,2020,thecompanysuccessfullylistedontheSci-TechInnovationBoard,raisingnetproceedsof610millionyuan,allofwhichwereinvestedinresearchandinnovationandcapacityenhancement,resultinginsustained,steadygrowthinoperatingperformance.

Sinceitslisting,thecompany'sannualrevenuesandnetprofitshaveconsistentlygrown,withacompoundannualgrowthrateof

15.65%inrevenuesand24.68%innetprofits.Thecompanyhascumulativelydistributedcashdividendsamountingto490millionyuan

andcompletedasharerepurchaseequivalentto2.46%ofthetotalsharecapital,witharepurchaseamountof299millionyuan.Intermsofearningsquality,thecompany'sreturnonequityhasalsoshowncontinuousgrowth.

Thecompanyhasestablishedafunctionalcompensationsystemthatintegratesjobresponsibilitieswithgoal-orientedaccountability,withvaluecontributionservingasthecoreprincipleguidingremunerationincentiveallocation.Thisensuresfairness,motivation,andcompetitivenessinthecompany'ssalarydistribution.Concurrently,itcontinuallyrefinesitsemployeecareerdevelopmentframework,fullymobilizingstaffmembers'enthusiasmandcreativity,therebyenhancingemployeecohesionandthecompany'scorecompetitiveedge.

Thecompanyhasputinplaceandimplementedaseriesofpoliciesandmeasurestoreinforcethesharedresponsibilityandsharedbenefitsmechanismbetweenmanagementandshareholders.Thisstimulatestheinitiativeandinnovativespiritofthemanagementteam,drivingthecompany'slong-term,steadygrowth.

Creating Value as the Foundation for Consistently Delivering Substantial Returns toInvestors

Enhancing Equality,Efficiency & Returns

79-80

Building a Win-Win Situation for Management and Shareholders throughShared Interests

Appendix: Key Performance Table

81-82

Performance IndicatorsValue in 2023UnitIndicator indexFinancialPerformance

Total assets425,755.9410,000 yuan

05?06, 11?12Net profit attributable to shareholders52,525.9910,000 yuan

Operating income222,524.9010,000 yuan

Net profit52,634.6810,000 yuanR&D investment22,743.5910,000 yuanRegulatoryperformance

Number of directors on the board of

directors

63?64, 69?70General meeting of shareholders2Times

Board meeting10TimesSupervisory board9Times

Party buildingperformance

Number of Party members in the

company

61?62Number of probationary Party

members in the company

Number of Party committee meetings

held throughout the year

6TimesNumber of Party building activities8TimesNumber of visits received for Partybuilding and mass organization

building

5TimesCompliancemanagementperformance

Compliance and anti-corruption

training completion rate

100%

67?68"Letter of Integrity and Self-Discipline Commitment" signing rate

100%Risk managementperformance

Risk management training2Times63?64

Energy & resourceconsumptionperformance

Electric energy5,503,055.50KWH

11?12, 17?18PV power generation502,352.31KWH

Water consumption176,942TonNatural gas81,264.47Cubic meter

Pollutant treatment

performance

COD concentration in discharged

wastewater

30mg/L

11?12?

BOD5 concentration in discharged

wastewater

6.3mg/L

Helium nitrogen concentration in

discharged wastewater

21.4mg/L

Total phosphorus concentration in

discharged wastewater

1.72mg/L

Petroleum concentration in discharged

wastewater

0.14mg/L

Total suspended particulate matterconcentration in discharged exhaust

gas

0.28

mg/m

Hazardous waste generation ( tin slag)4.005Ton

Hazardous waste recycling rate100%Environmental protection investment10.8310,000 yuan

Performance indicatorsValue in 2023UnitIndicator indexGreenhouse gasemissionsperformance

Greenhouse gas emissions3,615.16tCO

11?12Emissions per unit of income1.62Per million

yuan ofannual revenue

Employeeresponsibilityperformance

Total number of employees in 2023812

39?40?Number of male employees612Number of female employees200

Ratio of female employees25%

Turnover rate4%Labor contract signing rate100%Social insurance coverage100%

Occupational healthperformance

Training sessions588Times

39?42Employee training coverage100%Employee occupational health

examination rate

100%Occupational health record coverage100%

Newly diagnosed cases of

occupational diseases

Safety management

performance

Investment in work safety 63.2410,000 yuan

33?34Number of people trained in work

safety

4,052Work safety training duration108HourNumber of work safety emergency

drills

Number of participants in work

safety emergency drills

Number of production accidents0

Quality and service

performance

Number of newly authorized patents

in the year

29?30, 33?34Rate of qualified products99.93%

Customer satisfaction99.75%