海优新材：HIUV2024Environmental、Social and Governance(ESG)Report

2024 ENVIRONMENTAL, SOCIALAND GOVERMANCE REPORT

Shanghai HIUV New Materials Co., Ltd.

TEL：[phone]Web：www.hiuv.comAdd：Room 909A, Building A1 No. 3000 Longdong Avenue, Pilot Free Trade Zone, Shanghai, China

01 02 03 04About Report 1Message from Chairman 3About HIUV5Sustainability Highlights9

Sustainable DevelopmentManagementESG Governance

Stakeholders’ Communicagtion

Company Governance

Governance and Operation

Risk Management

Commercial Ethics

Information Security

Employee andCommunityLabor RightsEmployee Development

Health & SafetySocial ResponsibilityRural Revitalization

Products and ServicesTechnology LeadershipProducts and SolutionsProduct Responsibility

EnvironmentClimate Change Mitigation &AdaptationWater Resource ManagementClean ProductionCircular EconomyBiodiversity Conservation

Energy Utilization

Supply ChainSupply Chain Management System

Sustainable ProcurementSupplier Collaboration &Empowerment

Contents

CONTENTS

Sustainable Development Concept

2024 ESG Report

GRI Index 71

The organizational scope of this report covers Shanghai HIUV New Materials Co.,Ltd. and its subsidiaries (collectively referred to as "HIUV", "the Company", "theGroup" or "we"). Where specific data coverage differs from the reporting scope,such exceptions are clearly noted in the text. The report has been prepared withreference to the Global Reporting Initiative (GRI) Sustainability Reporting Standardsand the Shanghai Stock Exchange Guidelines No. 14 - Sustainability Reporting (Trial).

This report is the 2024 Sustainability/Environmental, Social and Governance (ESG)Report of Shanghai Hiuv New Materials Co., Ltd., published in April 2025. The report isissued annually, aligned with the fiscal reporting cycle. Prepared in accordance withthe principles of objectivity, standardization, transparency and comprehensiveness, itprovides detailed disclosure of Hiuv's practices and performance across economic,environmental, social and governance aspects during the period from January 1 toDecember 31, 2024. To enhance comparability and completeness, certain contentsextend beyond this reporting period.

This report complies with applicable laws and regulations in all jurisdictions whereHIUV operates, as well as the Company's development strategy. The informationcontained herein is for disclosure purposes only. Readers should conductindependent evaluation and seek professional advice before making any decisions.HIUV disclaims all liability for any direct or indirect losses resulting fromunauthorized use of this report.

This report covers an organizational scope includingShanghai HIUV New MaterialsCo., Ltd. and its subsidiaries (referred to as "HIUV," "the Com-pany,""the Group," or"we"). Where specific data coverage differs from this reporting scope, suchexceptions will be explicitly noted in the text.

The report is available for download at HIUV's official website (www.hiuv.com) or theShanghai Stock Exchange website (www.sse.com.cn). The Chinese version shall prevailin case of any discrepancies with the English version. Historical sustainability data canbe accessed at these addresses.

The report covers Shanghai HIUV New Materials Co., Ltd. and its subsidiaries(collectively referred to as "HIUV", "the Company", "the Group" or "we"). Anydiscrepancies in data coverage are clearly noted in the text.

Data sources include HIUV's internal records, public reports, third-party surveys, andofficial statistics, with all information accurately verified.

About Report

Report Access

Disclaimer

Report Scope

Data Source

ReportPreperationCriteria

ReportIntroduction

TerminologyNote

Shanghai Stock Exchange (SSE) Website公司官方网站

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1 2

2024 marked a year of multifaceted challenges and new industrial expansion for HIUV.Since its founding in 2005, HIUV has centered its growth on polymer material technology,driving innovation in renewable energy and advanced materials. We provide cutting-edgeproducts, premium services, and integrated solutions for photovoltaic (PV) modules,automotive components, high-end construction, and home applications. With technologicalinnovation as our core competitive edge, we are committed to infusing industrial productswith vitality through advanced polymer materials and advancing sustainable lifestyles withcost-effective solutions. Our mission is to become a globally leading intelligent manufacturerof polymer materials.In 2024, HIUV’s core business—PV module encapsulation films—faced a complex globallandscape, industry cyclical adjustments, and intense competition. Upholding our long-termsustainability vision, we leveraged cutting-edge technology and rapid innovation to launch sixnew high-performance film series, addressing customers’ cost-efficiency needs and nichemarket demands. We strengthened international collaboration to expand our overseasfootprint, optimize industrial positioning, and build enduring competitiveness. Concurrently,we reduced leverage, mitigated risks, safeguarded employee welfare, ensured compliantoperations, and fulfilled social responsibilities—fostering shared growth with stakeholders.Aligned with our long-term strategy, HIUV harnessed its expertise in polymer films,equipment, and process technologies to pioneer new materials for sectors like new-energyvehicles. In 2024, we accelerated the commercialization of energy-saving, low-carbonproducts such as PDCLC smart glass films (for dynamic tinting) and eco-friendly AXPOsynthetic leather for car interiors. These innovations enhance consumer experiences, empowergreener automotive solutions, and fuel Hiuv’s sustainable growth.

Message from Chairman

Chairman of HIUV Li Xiaoyu

In 2024, HIUV placed strong emphasis on sustainable development, integrating ESGprinciples into its strategy and operations. Collaborating with employees, customers,suppliers, investors, and other partners, HIUV reinforced its foundation in the photovoltaic(PV) industry while driving the growth of green energy. Additionally, HIUV expanded intothe automotive sector, innovating and developing eco-friendly surface materials.Committed to compliant operations, environmental protection, and social responsibility,HIUV actively promoted employment and social equity.Looking ahead, HIUV will strengthen corporate governance, enhance employee welfare,and continue delivering cost-effective, innovative products to clients across industriesthrough technological innovation, international collaboration, and operational efficiencyinitiatives. These efforts will ensure sustained and stable growth, enabling HIUV to calmlyrespond industry cycles and achieve long-term innovation-driven development. HIUV isdedicated to advancing PV industry upgrades and fostering environmental sustainability,energy efficiency, and technological progress in the automotive sector. By accelerating thetransition to a clean, low-carbon, and secure energy system, HIUV will fulfill its socialresponsibilities and contribute to global ecological conservation, pollution prevention, andthe shared success of all stakeholders!

3 4

5 6

HIUV is a high-tech enterprise with nearly 20 years of experience in polymer material R&D andmanufacturing, specializing in photovoltaic, automotive, architecture and hosehold. Our productportfolio includes photovoltaic module encapsulation films, PDCLC color-adjustable smart glass films,AXPO lightweight eco-leather, and PVE high-performance encapsulation films. Through technologicalinnovation, we are committed to providing mid-to-high end polymer material products, technicalservices and integrated solutions for diverse industries. In the photovoltaic encapsulation material,HIUV has established itself as an industry benchmark for quality and innovation with strong R&Dcapabilities and a comprehensive product line. For automotive smart dimming application, ouradvanced PDCLC technology and cost-competitive products have quickly gained industry recognition,positioning HIUV as both a technology leader and market pioneer in the smart dimming film.

CompanyProfile

Vission&Mission

中国

?2005 Established in Shanghai Zhangjiang Hi-Tech Park, founded the HIUV R&D Center?2006 Established a joint laboratory with East China University of Science andTechnology

?2008 Successfully conducted trial production of EVA films for solar photovoltaic cell

encapsulation?2009 Commenced construction of the industrialization project in Jinshan District,

Shanghai?2010 Began production on the EVA film production line at the Shanghai Jinshan

manufacturing base

?2012 Launched the EVA film production base in Baoding, Hebei Province?2014 Completed the corporate restructuring?2015 Listed on the National Equities Exchange and Quotations (NEEQ) system for SMEs?2017 Recognized as a "Little Giants of Technology," a Shanghai Enterprise Technology

Center, and a Specialized, High-end and Innovation-driven Enterprise in Shanghai?2018 Opened photovoltaic film production bases in Suzhou and Changzhou?2019 Its products are included in the 2019 Shanghai Innovation Products

Recommendation Catalogue

?2020 Recognized as a Shanghai Patent Demonstration Enterprise; launched the Taizhou

photovoltaic film production base

?2021 Listed on the STAR Market; launched the Shangrao photovoltaic film production

base project

?2022 Began production at the Taizhou and Shangrao bases; initiated the Vietnam

production base project

?2023 AXPO lightweight eco-leather for automotive applications has been industrialized?2024 PDCLC smart glass dimming film has been industrialized

China

Vietnam

Turkey

US

AUS

Spain

BusinessLayout

DevelopmentHistroy

Photovoltaic Automotive Architecture Household

Centered on polymer material technology, delivering innovative products,premium services, and integrated solutions for diverse industries, whilestriving to become a globally leading intelligent manufacturer of polymermaterials.To emerge as the international benchmark in intelligent polymer materialmanufacturing.Infusing industrial products with vitality through advanced polymermaterials and driving sustainable development for better living with cost-effective innovations.Innovation and progress, integrity and compliance, simplicity and efficiency,resilience and unity

Target

VissionMission

Value

About HIUV

Polaris Cup 2024 Influential

Brand for PV RawMaterials/Auxiliary MaterialsPolaris Energy Network

2023中国民营企业500强

中华全国工商业联合会

7 8

Certifications & RatingsHonor and Certificate

Top 500 Chinese Energy

EnterprisesChina Institute of Energy Economics

CREC 2024 Outstanding Innovation

Award for PV Materials

Wuxi Municipal People's Government

& CCOIC

Apollo “Global PV & Storage · ChinaName Card 2024” OutstandingAuxiliary Materials Enterprise

China International Photovoltaic andEnergy Storage Industry Conference

2023-2024 BIPV Industry Awardfor Innovative PV Material

Technology2nd Symposium on BIPV Modules

and Advanced Encapsulation

Materials Technology2024 SMM “Bright Cup” Top-Quality PV Material Supplier

SMM Nonferrous Metals Network

ISO 9001ISO 14001

ISO 45001

IATF 16949

GB/T 29490-2013(China'snational standard)

EmployeeHealth andSafety Audit(Note: Updated results as of April 2025)

National Intellectual PropertyAdvantageous EnterpriseChina National Intelligent Property

Administration

Shanghai Patent WorkDemonstration EnterpriseShanghai Intelligent Property

Administration“Little Giants” EnterpriseMinistry of Industry and InformationTechnology of The PRC

Shanghai EnterpriseTechnology Center

Shanghai Municipal Economic And IT CommissionShanghai Municipal Tax Service, State Taxation Administration

Shanghai Municipal Finance BureaShanghai Customs District P.R.China

Number of full-time employeesCumulative overseas employees recruitedTotal annual training hoursTotal employee training participationsTotal annual training sessions conductedTotal EHS training hoursTotal employee welfare expenditure

Value of charitable donations

9 8 h7 9

9 10

Environmental protection investmentRenewable electricity consumptionPV power generation

Integrity compliance training and awareness campaignsTotal supplier training hoursNumber of suppliers revisited

Trustworthy

Harmonious

Launched six new products in the photovoltaic industry and innovative productsincluding PDCLC color-adjustable smart films, AXPO leather, and PVE glassencapsulation films in the automotive industry

Pioneered R&D in PV module recycling technologies, leading thedevelopment of green closed-loop technologies for modules

The company has established technical cooperation with US-listedcompany H.B. Fuller to expand the encapsulant film market in theUnited States

118 million yuan

4.55 %2 6

4.7525 million yuan

17 million kWh

17.07million GWh

Innovative

Green

R&D InvestmentR&D Investment RatioNew Granted PatentCumulative authorized patents

8 5 6

67268 h8433

6768 h

7.9645 million yuan120 thousand yuan

Sustainable Development Highlights

Sustainable Development Management

HIUV implements sustainable development principles, continuously improves its ESG governance framework andmanagement system, and is committed to integrating sustainability concepts with corporate development strategies andoperational decision-making. We listen to and address the needs of all stakeholders while maintaining ongoingcommunication with value chain partners and the broader society.

GreenClimate ActionEnvironmantManagementWater Stewardship

HIUV's Board of Directors has established a dedicated ESG working body: the Strategy and ESGCommittee. This committee is primarily responsible for researching and providing recommendationson the company's medium-to-long-term development strategy, ESG initiatives, and majorinvestment/financing matters.

HIUV established its sustainability philosophy in 2024, built upon four core pillars:

Innovation, Trust, Green Development, and Harmony. By aligning corporate strategy withthe UN's 2030 Sustainable Development Goals, HIUV is committed to delivering cost-effective innovative products across multiple sectors through technological innovation,collaborative partnerships, and efficiency-driven initiatives. These efforts provide thefoundation for sustainable growth while navigating industry cycles through continuousinnovation.HIUV will actively promote technological advancements in the photovoltaic industry whiledriving environmental protection, energy efficiency, and innovation in the automotivesector. The company accelerates the transition toward a clean, low-carbon, safe, andefficient energy system, fulfilling its social responsibilities by contributing to globalecological conservation, pollution prevention, and collaborative development withstakeholders.

SustainableDevelopment Goal

SustainableDevelopmentConcept

SustainableDevelopment Vission

Trustworthy

Social ResponsibilityManagementCustomer RelationsResponsible Supply Chain

HarmoniousEmployee WellbeingIndustrial CollaborationCommunityImprovement

InnovativeProducts ResponsibilityTechnology Innovation

Corporate & ESG Governance Structure

ESGGovernance

董事会

The company’s daily decision-making meeting. It is responsiblefor executing the resolutions of the General Meeting ofShareholders, deciding on the company’s business plans andinternal management structures, formulating profit distributionplans and investment and financing plans, appointment anddismissal of senior management personnel, and managing thecompany’s information disclosure. It is composed of seven

directors (including two female directors), of whom three areindependent directors.

▲The company’s supervisory body. It is responsible for supervising relevantitems including the company’s operations, related transactions, management anduse of raised funds, promoting the company’s healthy, stable, and sustainabledevelopment. It is composed of three supervisors, including two shareholder

representative supervisors and one employee representative supervisor(including one female supervisor).

The company's operationalleader, under the guidance of theBoard of Directors, is responsiblefor implementing Board resolu-tions and overseeing corporateproduction, operations, and dailymanagement activities.

Board of Supervisors

CEO

Board of Directors

The highest authority of the company. The procedures for convening,holding, and voting at the General Meeting of Shareholders comply withthe Company Law of China, Articles of Association, Rules of Procedurefor the General Meeting of Shareholders, and other relevant regulations,ensuring that all shareholders, especially minority shareholders, enjoyequal status and legitimate rights.

Strategy and ESG Committee

Compensation and Appraisal

Committee

▲One of the specialized committee established by the Board ofDirectors. It is mainly responsible for researching and makingrecommendations on the company’s medium- and long-termdevelopment strategies, ESG work, and major investment andfinancing matters. It is composed of three directors, with the

chairman of the board serving as the chief committee member.

▲One of the specialized committee established by the Board ofDirectors.It is mainly responsible for communication betweeninternal and external audits, reviewing the company’s internalcontrol systems and their effectiveness, recommending theappointment or replacement of external auditors, and reviewingthe company’s financial information and disclosures. It is

composed of three directors (including one female member), withan independent director serving as the chief committee member.

▲One of the specialized committee established by the Board ofDirectors. It is mainly responsible for selecting andrecommending candidates for the company’s directors andsenior management personnel, as well as defining selectioncriteria and procedures. It is composed of three directors, with an

independent director serving as the chief committee member.

▲One of the specialized committee established by the Board ofDirectors. It is mainly responsible for formulating compensationplans and appraisal standards for the company’s directors andsenior management personnel, and submitting appraisals to theboard for review and decision. It is composed of three directors

(including two female members), with an independent directorserving as the chief committee member.

Nomination Committee

General Meeting of Shareholders

Audit Committee

SecuritiesDept.

Legal Dept.

GM Office

Information Dept.HR &Administration Dept.Finance Dept.Group Affairs Dept.Supply Chain Dept.R&D CenterIndustrialIncubation Dept.Automotive Dept.PV Dept.

11 12

Board Secretary

Suppliers andBusinessPartners

????

Win-Win CooperationIntegrity andComplianceGreen Supply ChainEthical and CompliantBusiness Environment

????

Supplier Code of Conduct for Integrity and ComplianceSupplier Regular Follow-ups, Technical Exchanges, Visitsand Tours

Supplier Empowerment TrainingSupplier Risk Assessment and On-site Audits

??

Conducted 79 supplier integrity and compliance trainingsessions, totaling 98 hours with 120 participants

Performed 35 supplier follow-up visits and 240supplier exchanges

???

Tax ContributionsEmployment GenerationCompliant Operations

??

Regulatory Supervision and Policy RecommendationsParticipation in Government-Led Industrial DevelopmentForums

??

Attended local government industrial developmentforums, undertook technology innovation projects andfacilitated project implementation

Conducted 12 special internal audits and annual internalcontrol verification audits, with no material weaknessesidentified, ensuring financial and tax compliance

GovernmentandRegulatoryAuthorities

IndustryAssociations

???

Fair CompetitionPromotion of IndustryDevelopment

Technology andExperience Sharing

??

Industry Exchange SeminarsProject Collaboration

??

Established industry-university-research partnerships withmultiple institutions including Shanghai Jiao TongUniversity, East China University of Science andTechnology, University of Queensland, and University ofNew South WalesCollaborated with upstream and downstream partners toadvance technological innovation and projectcooperation, participated in 26 international technologyexchanges and forums, conducted 12 regular technicalexpert exchange trainings

Communities andNon-GovernmentalOrganizations

????

EnvironmentalProtection

Rights ProtectionInternationalCooperationCommunityDevelopment Support

????

Proactively engaged with community townships,participated in project collaborations, charitable donationsand public welfare activitiesParticipated in industry associations, academic societiesand corporate open daysParticipated in industry associations, academic societiesand corporate open days

???

Implemented 1 public welfare donation and educationsupport project with donation value of RMB 120,000Attended receptions hosted by Australian governmentand Spanish Trade Promotion Council to advocate forgreen industrial circular economy in modulesParticipated in exchange meetings with East ChinaUniversity of Science and Technology and RecyclingAssociation to promote recycling technologydevelopment and raise social awareness

Media

??

Full Disclosure andCommunicationAuthentic and AccurateInformation

???

News Reports and BriefingsManagement Interviews

E-interaction

?

?

Maintained positive interactions with multiple PV andautomotive industry media outlets, conducting interviewsor briefings with no less than 8 financial mediamaintaining good interactionsResponded to 45 E-interaction inquiries with100% response rate

AcademicExperts/Scholars/ProfessionalOrganizations

???

Policy TrendsIndustryDevelopmentsESG TheoreticalStudy

??

Professional Seminars

Professor Lectures

??

Conducted 12 recycling expert symposiums to discussand innovate sustainable technologies for PV industryInvited ESG professors from National University ofSingapore to conduct courses and training sessions forcompany leadership and relevant business heads on ESGtheory and practice

Stakeholder Expectatinos Communication Channel Communication Highlights in 2024

Customers

????

Products that Meet NeedsComprehensive ServicesCommitment ComplianceIntegrity-Based BusinessEnvironment

????

Customer Technical Exchanges, Industry Conferences, and ProductLaunchesIndustry Exhibitions, Forums, and PublicationsInternal Company Communication and Complaint Channels, RegularSatisfaction SurveysCustomer ESG Exchanges and Training

??

The company conducted 35 on-site customer ESGcommunication sessions and training programs, with 120participantsThe company participated in 4 industry exhibitions and over20 industry forums and conferences, receiving more than1,000 visitors throughout the year.

Employees and

Labor Unions

????

Health and SafetyCareer DevelopmentPositive Work EnvironmentRights Protection

????

Labor Unions and Staff RepresentativeCongress

Training and DevelopmentEmployee Forums, Staff Activities,Employee ClubsWhistleblowing Hotline and Email

??

Monthly employee forums and

satisfaction surveys are conducted,encouraging (rationalization suggestions)with rewards provided.

Anti-corruption reporting mailbox andhotline are publicly available, with timelycommunication and audits uponreceiving employee reports, achieving

100% case resolution rate.

Shareholdersand Investors

??

InvestmentReturnsFinancial Stability

??

Earnings Conference Calls, InvestorHotline, Roadshows, Conference CallsShareholders' Meetings, Regular Reportsand Ad Hoc Announcements, On-siteResearch

?

The company has conducted:30

investor conference calls; 11 strategymeetings; 31 roadshow events; 51 on-site research sessions; 6 earningsbriefings

Participation in SustainabilityMatters at All Levels Duringthe Reporting Year

In 2024, the Company continued to optimize its ESG governance framework, driving deeper integration ofsustainability initiatives with corporate strategy. The Board of Directors oversaw ESG due diligence and materialityidentification processes, while the Strategy and ESG Committee was responsible for implementation. Its key dutiesincluded: aligning long-term strategic objectives with ESG principles; formulating ESG policies and defining scope(e.g., environmental compliance, human rights in supply chains); identifying and assessing ESG-related risks;monitoring ESG performance; appointing the ESG Officer for stakeholder engagement; fulfilling social responsibilitiesto advance sustainable development

In 2024, the company held 6 meetings of the Strategy and ESG Committee

In 2024, HIUV held 6 meetings of the Strategy and ESG Committee, continuously advancing the comprehensive integration of corporatesustainability and ESG concepts into strategic objectives, operational management, and business processes.The company's chairman, representing the board of directors, oversees the ESG due diligence and materiality identification process, while theStrategy and ESG Committee is responsible for execution. Key responsibilities include: reviewing whether the company's long-term strategicgoals align with ESG principles; formulating ESG policies and management frameworks; defining the company's ESG coverage (e.g.,environmental compliance, human rights in supply chains); identifying and assessing ESG-related risks; establishing the organizationalstructure and management processes for ESG governance; monitoring achieved ESG performance; appointing the company's ESG officer tocommunicate with stakeholders; fulfilling social responsibilities; and driving the company's sustainable development.

Case｜ HIUV held six internal meetings of the Strategy and ESG Committee

Stakeholder Expectatinos Communication Channel Communication Highlights in 2023

To better understand the expectations and concerns of stakeholders, the company expanded diversifiedcommunication channels, maintained smooth communication mechanisms with different stakeholders,listened to their expectations and demands, and provided timely feedback for active improvement.

13 14

Stakeholders’Communication

☆

Case｜ Multifaceted Collaboration with Domestic and International Industry Chains

HIUV has actively advanced communication with stakeholders topromote technology-driven development and shared sustainabilityacross the value chain. By extensively soliciting external input, HIUV hasdeepened collaboration with industry partners to jointly research anddevelop green, low-carbon materials, expanding its global industrialpresence to contribute to worldwide sustainable development.

HIUV has participated in conferences and forums across photovoltaic and automotive sectors, showcasing innovativeachievements. Through partnerships with global stakeholders, the company has advanced new technologies and productsto drive industry sustainability.

Highlights of StakeholderEngagement This Year

June: Attended SNEC 2024 (Shanghai)

July: Joined ATMS 2024 (Shanghai)

，September: Partnered with H.B. Fuller at RE+ 2024 (U.S.)

June: Participated in Intersolar 2024 (Munich)

April: Invited to the 2024 N-Type Technology &Industry Development Forum, awarded "IndustryLeader"

May: VP Yu Hang attended the Next-Gen Seat SolutionsLaunch hosted by Dow and partners

October: Introduced four perovskite encapsulationsolutions at the 2024 Perovskite PV Industry ConferenceSeptember: Presented at the 2024 Marine EnergyIntegration Forum & EXPO

December: Honored with the CREC 2024 OutstandingInnovation Award for PV MaterialsDecember: Shared insights at Taiyang News 2024 High-Efficiency Solar Technology Virtual Conference

15 16

Materiality issue assessment involves comprehensive analysis of potential risks and opportunities andserves as an important task for company management in decision-making.In 2024, the company followed the materiality issue assessment steps of "stakeholder communication- issue identification - issue evaluation - materiality confirmation - issue review" to conduct relevantresearch in an orderly manner. We systematically identified key issues and future developmentdirections in ESG, continuously using the "dual materiality" approach to identify the company'smaterial issues from two perspectives: "importance to business continuity and development" and"importance to stakeholders." We identified 18 issues highly relevant to the company and finallyplotted these 18 issues, which were highly valued in both dimensions based on research results, intothe 2024 ESG Materiality Issue Matrix.

◆ Questionnaire survey: We distributed the 2024 HIUV Sustainability Materiality Issue Questionnaire

to stakeholders to collect their importance rankings of issues and improvement suggestions.◆ Interview communication: In 2024, we conducted interviews with internal departments on

environmental, social, and governance issues and received inquiries from external stakeholders

such as investors.

◆ Based on regulatory policies in operational regions, domestic and international customer

feedback and demand analysis, GRI and Shanghai Stock Exchange guidelines, ESG disclosure

standards, communication results with mainstream international ESG rating agencies, peer

companies, media monitoring, investors, and other stakeholders, we identified 18 issues highly

relevant to the company.

◆ Based on questionnaire survey results, we plotted the materiality issue matrix.◆ Considering company development strategy, interview communication, external inquiries, and

industry trends, we confirmed the materiality issues.

Materiality IssueMatrix

17 18

◆ The confirmed materiality issue rankings and materiality issue matrix were submitted to the

Strategy and ESG Committee for review and approval.

Materiality Confirmation

Issue Review

Stakeholder Communication

Issue Identification

Issue Evaluation

4.43

4.33

4.23

High-Priority Issue Rankings Report Response SectionTechnology Leadership Product Quality

Products and Sevices Products and Sevices

Governance and Operation Risk Management

Corporate Governance

Unit Production Cost Reduction Customer Satisfaction

Products and Sevices

Supply Chain Management

Supply Chain

Health and Safety Labor Rights Employee Development

Employees and Community

Information Security and Privacy Protection

Corporate Governance

Clean Production Clean Energy Utilization Circular Economy

Environment

Human Rights Due Diligence

Employees and Community

Commercial Ethics

Corporate Governance

Improve Energy Efficiency Reduction in Wastewater, Waste Gas and Solid Waste Emissions

Environment

HIUV 2024 Materiality Matrix and High-Impact Issue Responses

Importance to HIUV

Importance to Stakeholders

3.4 3.5 3.67 3.78 4 4.22 4.33 4.56 4 .78 4.89 5

3.22 3.33 3.44 3.56 3.78 4.11 4.22 4.33 4.44 4.67 4.89 5Improve EnergyEfficiency

Reduce Wastewater, Waste Gas &Solid Waste Emissions

Business EthicsClean Energy TransitionHuman Rights Due Diligence & Cleaner Production

Circular Economy

EmployeeDevelopment

Information Security & Privacy ProtectionLabor Rights

Health and SafetyCustomer SatisfactionSupply Chain Management

Unit Production Cost Reduction

Risk Management

Products QualityGovernance andOperation

Technology LeadershipProducts nd Service

◆ We maintained regular communication with stakeholders such as investors, customers, suppliers,

employees, and government agencies, recording issues of concern to different stakeholders andspecific content, and actively responding to their demands.

HIUV has established a standardized governance framework, emphasizing board diversity andinvestor relations. We adhere to compliant operations, proactive risk management, anti-corruptionpractices, and maintain a secure operational environment.HIUV strictly complies with:

Company Law of the People’s Republic of China; Securities Law of thePeople’s Republic of China; Corporate Governance Guidelines for Listed Companies; SSE StockListing Rules.We maintain a clear governance structure with well-defined responsibilities.The company has established a Remuneration and Performance Evaluation Committee to defineexecutive compensation structures. The remuneration for directors, supervisors, and seniormanagement primarily consists of base salary and performance-based compensation, where the latterserves as incentive pay linked to value creation during operational periods. In 2024, the companyoptimized itsRemuneration Management Systemin accordance with the Articles of Association toscientifically govern the compensation of directors, supervisors, and senior executives. Aligned withannual business objectives and progress in new business areas, HIUV established a dual evaluationmechanism combining quantitative and qualitative indicators as well as business operations andcritical tasks to assess executive performance. This ensures that compensation is strictly tied tomanagerial competence and operational results, shares risks and rewards with the company and allshareholders, fully motivates executives’ initiative and creativity, and safeguards the interests of thecompany and shareholders.

Board Members

Independent Directors

Internal Directors

4 All are senior executives

ExternalDirectors

Senior managementexperience

HIUV maintains strong communication with investors. In 2024, the company responded to 45SSE E-Interaction inquiries, held 30 investor conference calls, conducted 11 strategy meetings,organized 31 roadshow events, received 51 on-site research visits, and hosted 6 earningsbriefings, sustaining long-term, stable, high-frequency communication and robust investorrelations.

Responded to SSE E-Interaction inquiries

Host roadshow events

Conducted investorconference calls

Received on-siteresearch visits

Organized strategymeetings

Held earningsbriefings

Corporate Governance

Content SDGs Addressed in This Chapter

To enhance scientific and efficient operations of board committees, directors and committee members are nominated bythe Nomination Committee, which verifies their qualifications before approval by the board and shareholders. Selectioncriteria include professional expertise, industry experience, leadership, sustainability knowledge, and ethical compliance.HIUV ensures diversity in gender, age, background, and professional fields. Board members must avoid conflicts of interestwith the company or key stakeholders and sign STAR Market director commitments. An ESG Working Group under theStrategy and ESG Committee advances ESG initiatives.

The company's Supervisory Board is responsible for overseeing the company'sbusiness operations and development, related-party transactions, and key aspects offundraising management and fund utilization, ensuring corporate developmentcomplies with regulatory requirements.

HIUV actively engages investors. During the reporting period, shareholders’meetings addressed governance, financial performance, strategy, and new businessdevelopment.The company has established a governance structure centered on the Board ofDirectors, which oversees corporate operations and formulates strategies. The Boardhas established four specialized committees to jointly supervise and manage allgovernance-related matters.

The controlling shareholder exercises rights responsibly. HIUV operatesindependently in business, personnel, assets, structure, and finance.

HIUV considers board member diversity a critical element supporting sustainable development.The company conducts board elections every three years, with director nominationsundergoing rigorous selection processes that incorporate diversity factors such as industryexperience, educational and cultural background, competencies, and gender into theevaluation criteria.

19 20

Governanceand Operation

CorporateGovernance

Directors and Board

Shareholders and Shareholders’

Meetings

Supervisors and Supervisory

Board

Controlling Shareholder andListed Company

Governance and Operation｜Risk Management｜Commercial Ehics｜Information Security

Female Directors

Board Diversity

Extensive professional expertise

Investor Relations

2024 ESG Report The Beginning of the Report Sustainable Development Management Company GovernanceProducts and Services Environment Supply Chain Employee and Community GRI IndexHIUV firmly believes robust risk management is the cornerstone of sustainable corporate development. The company hasestablished and continuously optimized its risk management mechanisms, formulated comprehensive Internal ControlManual and authorization systems to strengthen internal risk control and compliance. The Board of Directors has set up anAudit Committee, while the Board Secretary oversees legal affairs and internal audit functions to enhance audit oversightand risk management capabilities.The company strictly adheres to domestic and international laws and regulations, implementing systems including

Information Disclosure Management Regulations, Internal Control Management Regulations,Investor RelationsManagement Regulations, andPublic Opinion Management Regulations. The securities department holds weekly meetingsto discuss information disclosure arrangements and investor relations. Daily information disclosure content undergoesrigorous internal approval processes to ensure no material omissions or misleading information.

The company develops its compliance management system in accordance with ISO 37301:2021ComplianceManagement Systems - Requirements with Guidance for Use, conducting business risk identification and assessmenton compliance topics including labor practices, anti-monopoly, and anti-bribery, and integrates compliance riskmanagement into daily operations. Targeted improvement measures are formulated for critical risk points.Additionally, the company updated compliance processes by adding monthly internal inspections and external reviewprocedures. Biannual online integrity and self-discipline training is conducted for key management and commercialpositions, with strong participation rates. No material compliance violations occurred during the reporting period.

HIUV strictly adheres to business ethics standards, having established and implementedtheCode of Business Conduct. The company promotes a culture of integrity, resolutelyopposes commercial bribery, corruption, monopolies, money laundering, and unfaircompetition, and is committed to building an honest, fair, and transparent businessenvironment to maintain good market order, enhance industry reputation, and achievesustainable development.

Audit projects conducted during the reportingperiod:

The company conducts regular internal and external audits to continuously improve management in business unitsand internal control departments.

21 22

Risk ControlRisk ManagementSystem

Commercial Ethics

ComplianceConstruction

Audit & Supervision

No material deficiencies were identified. Additionally, sample auditsand reviews were performed on the deliberation processes for thecompany's 2024 major investment matters and significant operationaldecisions, including reviews by the President's Office, Board ofDirectors, and Shareholders' Meetings, with no non-compliantdecisions detected.

Business Operations ManagementEnhances risk identification and managementcapabilities across business units, strengthens riskawareness and accountability among operationalstaff, and fully leverages business units' role in riskidentification and prevention.

Risk Management & ComplianceDept.Responsible for internal monitoring andsupervision, integrating internal control processesinto daily operations and product developmentto ensure effectiveness of control measures.

Internal Audit Dept.Maintains high independence and objectivity,providing independent assurance on governance,risk management, and internal controleffectiveness. Audits all operational departmentsagainst the Internal Control Manual to verifyachievement of risk management objectives.

Senior Management

Governance Bodies / Board ofDirectors / Audit Committee

External Audit

Government & RegulatoryAuthoritiesBusiness OperationsManagement & Control

Internal Control Measures

RiskControlFinanceControlQualityControl

Law/Compliance

ComplianceVerification

InternalAudit

A series of systems were established, including: Corporate Information SecurityManagement Regulations; Company Confidentiality Regulations; Information SecurityEmergency Response Regulations; Intellectual Property Management Rules. Thesestrictly regulate information flows, access permissions, IP ownership, and emergencyhandling.

The company improved governance frameworks, operational procedures, workflowprocesses, and internal audit systems. Process monitoring roles were enhanced, andregulatory training courses were implemented to ensure all employees understand thesystems.The Employee Code of Conduct for Supplier InteractionsandNew SupplierAssessment Reports were developed and optimized.

Information disclosure obligations are strictly fulfilled under theCompany Law,SSESTAR Market Listing Rules, andListed Company Information DisclosureManagement Measures to ensure authenticity, accuracy, completeness, and fairness.

The Investor Relations Management Regulations were established to enhancecommunication with institutional and retail investors through channels including theSSE website, SSE E-Interaction platform, shareholders’ meetings, earnings briefings,online/offline investor research sessions, and phone/email exchanges.Responses to investor inquiries are provided via the SSE E-Interaction platform.

A transparent trade secret protection hotline and reporting email were set up to eliminateinformation security risks.Risk Management

Risk Management Culture

Process-based InternalControlsConformance Management

Risk CategorizationStrategic RiskOperational RiskFinancial RiskCompliance Risk

Risk ControlMechanismOperationRisk Control

TargetAchievement

Dedicated Mitigation PlanContingency Plan Management and Drill Training

IT-enabled & Finance-Integrated Risk Monitoring and Early-warning

Business Process

Corrective ActionInternal Control Manual

Risk Recognition

and Assessment

Top-down & Bottom-up RiskReporting ChannelsRisk Response and Control

Risk Supervision andReporting

InvestorRelationManagement

ComplianceInformationDisclosureProcessOptimization& Control

InformationSecurityManagement

HIUV advocates fair competition, strictly complies with laws including theAnti-Unfair CompetitionLaw of the People’s Republic of China, and resolutely prohibits any market-confusing or consumer-misleading practices. The company does not engage in bribery or other unfair tactics to gainbusiness opportunities. HIUV respects and protects trade secrets, avoids false advertising, refrainsfrom infringing intellectual property rights, and ensures no disruption to the normal operation ofonline products or services. In 2024, the company faced no legal disputes related to unfaircompetition or antitrust violations.The Company has established an Audit Committee, which emphasizes the coordination betweensupervision and auditing to form a working mechanism characterized by overall planning, strictorganization, collaborative division of labor, and efficient operation. Through regular and irregularaudits of the Company's internal operational activities, it ensures the compliance of all businessesand promptly identifies and corrects potential issues. Meanwhile, HIUV has formulated theIntegrityin Employment Management Systemand enhanced its anti-corruption and anti-bribery provisions.The System explicitly prohibits any form of corruption and bribery and stipulates correspondingpenalty measures. Based on this System, the Company has also intensified employee education andtraining to enhance their understanding of the importance of anti-corruption and anti-bribery, andencourages employees to actively report any detected corruption or bribery acts.

HIUV places high importance on user information security and privacy protection. In accordance withlaws such as theData Security Law of the People's Republic of China, the Personal InformationProtection Law of the People's Republic of China, and the EUGeneral Data Protection Regulation

(GDPR), the company has established relevant data and information security regulations.For customer privacy protection, the company has implemented internal policies, deployed fileencryption systems, signed confidentiality agreements, and organized employee training. Two annualtraining sessions on intellectual property and data protection are conducted. Privacy protectioncommitments and practices are communicated to clients through confidentiality agreements.For emergency management, the company has an information security system, regularly backs upcritical data, and deploys terminal control systems. In the reporting year, no privacy breaches occurred.

Anti-Unfair Competition

Anti-Corruption

The company conducted integrity promotion activities for 79 key suppliers annually, includingthematic sessions at supplier conferences to communicate corporate integrity standards.

100% of employees signed the Integrity Self-Discipline Pledge.100% of partners signed theSupplier Integrity Pledge.Multiple integrity campaigns were organized company-wide throughout the year. The Internal AuditDepartment established an integrity reporting hotline and email, achieving a 100% audit rate forreported cases.

All production bases conduct integrity training and self-assessment activities, holding biannualintegrity training sessions with 100% employee participation. Anti-corruption training coveragereached 100%.

Integrity compliance questionnaires were distributed to suppliers, with 100% rating atmedium-high levels.

23 24

HIUV's 2024 Achievements in Integrity Work

InformationSecurity

Whistleblowing &Complaints

Anti-Money Laundering

IntegrityTraining

IntegrityCollaboration

IntegritySurveys

IntegrityPromotion

☆

Corruption-related legal cases in 2024

HIUV complies with theAnti-Money Laundering Law of the People’s Republic of China, strengthensinternal AML compliance, ensures operational compliance, and collaborates with law enforcement andfinancial institutions to combat money laundering. Regular AML training is conducted to improveemployee awareness.To advance integrity initiatives, HIUV has established a standardized whistleblowing and complaintmanagement mechanism. The company provides a supervision hotline and email([e-mail]). Reported cases are investigated by internal department heads, who conductfact-finding interviews with relevant parties. Through interviews, on-site inspections, and othermethods, the company comprehensively collects and analyzes information, assessing operational riskssuch as power abuse, benefit transfers, and irregularities. No corruption risks were identified.The company has improved whistleblower protection measures by offering anonymous electronicforms and ensuring confidentiality. Whistleblower rights are strictly safeguarded, and relevantdepartments are required to maintain strict confidentiality, prohibiting any discrimination or retaliation.

IntegrityCommitments

Products and Service

SDGs Addressed in This Chapter

Products and Solutions 31Technology Leadership 25Product Responsibility 33

Content

1.1TechnologyLeadership

HIUV adheres to the business philosophy that "innovation is the company's corecompetitiveness," continuously increasing R&D investment, improving the innovation system,and expanding the innovation talent pool. In 2024, HIUV accelerated digital transformation,standardized innovation management operations, enhanced confidentiality systems,strengthened intellectual property management, launched six new products in thephotovoltaic industry, and introduced innovative environmentally friendly surface materialAXPO leather, cost-effective PDCLC color-adjustable liquid crystal films, and PVE glassencapsulation films in the automotive sector. These efforts accelerated the transformation ofinnovation achievements, comprehensively enhanced the company's technological leadershipcapabilities, and implemented the business philosophy of technology-driven development.

R&D TeamConstruction

HIUV continues to improve its technology R&D system and strengthen its R&D team,focusing on creating a favorable R&D environment. The company has established internalcommunication channels and knowledge-sharing mechanisms, regularly inviting experts andconsultants to discuss R&D topics and provide professional insights, while encouraging theR&D team to learn, exchange, and share professional knowledge.Through the establishment of confidentiality mechanisms and R&D personnel incentivesystems, HIUV implements multi-dimensional talent development incentives such asperformance evaluations, promotions, and equity incentives to fully motivate employees andpromote long-term career growth for R&D personnel at HIUV. The company aims to cultivatea high-level R&D team with both research experience and professional expertise, striving tobecome a hub for top talent in polymer materials and chemical engineering.

IndependentR&D

Since its founding in 2005, HIUV has focused on independent R&D, guided by technologicalinnovation, application development, and industrial chain layout. Through continuous R&Dinnovation, the company combines formulations, equipment, and processes to further explorenew industries, improve product structures, enhance product cost-performance ratios,accelerate product iterations, and maintain technological leadership advantages.

As one of the leading technology companies in the photovoltaic industry, HIUV upholds thebusiness philosophy that "R&D innovation is the core competitiveness," consistently insistingon independently designing production equipment for innovative products, independentlydeveloping production processes, and combining self-developed product formulations tomaintain technological leadership in the industry.As an innovator in new surface materials and dimming materials for smart glass in theautomotive sector, HIUV combines its self-developed formulations with independentlydesigned equipment to continuously enhance product innovation and breakthroughtechnological advantages.

25 26

R&D Investmentmillion yuan

R&D Personnels

168 人

R&D Investment Ratio %

R&D Personnel Ratio

4.55

19.63 %

Self-developedEquipment &Process Design

ProductInnovations

Leveraging advanced battery technology, we upgraded photovoltaic module processes and structuraldesigns in 2024, successfully developing multiple high-performance products capable of stable operationin complex environments.

Third-Generation Zero-MigrationLight-Conversion FilmAddressing HJT cells' sensitivity to UV-induced degradation,HIUV's third-generation zero-migration light-conversion &anti-oxidation solution reduces annual HJT cell degradation by~0.5%.

Black FilmHIUV Black Film 2.0 enables power plants to generate 2 millionadditional kWh/MW over 25 years. Modules using this blackfilm exhibit superior aesthetics compared to conventionalmodules.

Field InnovationsAXPO Lightweight Eco-Leather

AXPO leather surpasses traditional PU and PVC leather in softness and comfort, with unique elasticity and tactile quality comparable togenuine leather, while offering superior environmental sustainability. It perfectly blends fashion and eco-friendliness, meeting consumerdemand for high-quality leather materials.

PDCLC Smart Color-Adjustable Liquid Crystal Film

27 28

PDCLC film enables glass to switch between transparent and opaque states via voltage adjustment—transparent when powered andopaque when unpowered. It can be used for laminated smart glass or as a projection backfilm. Leveraging the electric field principleof liquid crystal glass, it maintains spatial openness while providing privacy protection. Unlike conventional PDLC products, HIUV'sPDCLC incorporates dyes, giving its black adjustable film a premium aesthetic suited for diverse applications, particularly automotivesunroofs, offering smart dimming, privacy protection, energy efficiency, and UV resistance.HIUV Color Film achieves 10%-25% higher light transmittancethan traditional colored glass, increasing module power outputby 8%-20%.

Color Film

Desert Application

HIUV's EPE encapsulant film P507 for PV modules receivedCPVT's "National Preferred Product" certification for regionalizedweather resistance (Arid Desert Series).

PVE High-Performance Glass Encapsulation FilmAs the industry's first PVE glass encapsulation film specifically developed forautomotive glass bonding, it delivers heat and noise reduction with high-strengthadhesion, meeting both automotive glass bonding requirements and energy-savingneeds.HIUV's EPE encapsulant film P507 and EVA encapsulantfilm S201MT for PV modules obtained CPVT's "NationalPreferred Product" certification for regionalized weatherresistance (Deep Ocean Series).

Marine Application

IntellectualProperty

The company has established a comprehensive intellectual property management system withstandardized control procedures. Dedicated departments and personnel oversee thestandardized and process-driven management of IP acquisition, maintenance, utilization, riskmanagement, and dispute resolution. The company obtained the Intellectual PropertyManagement System Certification and engages professional IP service providers for patentstrategy and novelty searches.In accordance with theNotice on Selecting National IP Demonstration Enterprises in 2022 issuedby the CNIPA, Shanghai HIUV New Materials Co., Ltd. was designated as a National IntellectualProperty Advantage Enterprise in September 2023 after evaluation and review. This recognitionreflects the company's strategic IP management capabilities, outstanding comprehensivecompetitive advantages in IP, enhanced innovation system efficiency, and industry leadership.

2024 Patent Applications & Grants Disclosure

CollaborativeInnovation

IP Portfolio as of End

2024--Patents Granted:

International Patents &Trademarks:

Countries/Regions

HIUV leverages technical collaborations to drive technology innovation, building a full-value-chaincollaborative Innovation system to promote high-quality industry development. In 2024, the companypartnered with academic institutions for R&D projects and collaborated with overseas research institutes andtrade councils to advance international projects.HIUV actively participates in national, industry, and corporate standard-setting, contributing to technologicalprogress and quality assurance. By end-2024, the company had participated in 13 standard formulations.

External Technical Standards: 2TCECS 1099-2022Technical Specification for Glass StructuresTCECS 1281 2023Technical Specification for Glass Composite Panel Curtain Walls

National Standards: 2Industry Standards: 1Association Standards:10

2024 Association Standards: 4

T/CPIA 0064-2024Test Method for Surface Roughness of PV Encapsulation Films

T/CPIA 0071-2024Co-extruded Encapsulation Films for PV Modules

T/CPIA 0069-2024Coupled Environmental Stress Test Methods for PV Modules

T/CPIA 0073-2024 Test Method for Acid Content in PV Encapsulation Films

29 30

Overseas PatentApplicationsDomesticPatentApplications

Domestic Patent

Granted

OverseasPatent Granted

1.2Product Solutions

Leveraging technological innovation, we develop diversified productportfolios centered on customer value creation, delivering actionablesolutions to advance global decarbonization and accelerate carbon neutralitygoals.

Industry-SpecificCarbon ReductionSolutions

The company provides carbon reduction solutions for photovoltaic industryclients by optimizing EVA and POE film formulations to minimize weight,improving processes to reduce energy consumption in PV module production,and helping clients achieve annual carbon emission reductions in theirmanufacturing processes. Simultaneously, the company enhances productionline speed, lowers energy consumption, and achieves energy savings,emission reductions, and cost efficiency.For film product packaging materials, the company adopts recyclablepackaging materials to reduce carbon emissions and support industry clientsin meeting their carbon reduction goals.

Low-Carbon Footprintand Eco-friendlyAttribute

In innovative product development, the company thoroughly considers materialenvironmental attributes and full product lifecycle carbon footprint:

Prioritizing eco-friendly raw materials in product formulations;Ensuring safe and low-carbon operations throughout manufacturing;Adopting recyclable packaging materials;Guaranteeing green and safe application without environmental pollution.The company meticulously addresses environmental protection, safety and low-carbon aspects across the entire new product chain. This approach not onlyreduces resource waste but also minimizes environmental impact, aligning withsustainable development principles.

31 32

HIUV AXPO is an environmentally friendly synthetic leather basedon polyolefin elastomer (POE) material. As an innovative eco-leather, it eliminates harmful chemicals (plasticizers, heavy metals)used in traditional leather production while featuring low VOCemissions and minimal odor. This breakthrough product meetsboth modern demands for environmental/healthy materials andautomotive industry requirements for premium interior surfaces.HIUV AXPO demonstrates excellent aging resistance, maintainingstable performance under harsh environments, particularlymeeting stringent automotive industry requirements. Its availablecolor options (white, beige, etc.) perfectly align with contemporarylight-color interior design trends, fulfilling diverse fashiondemands.Additionally, HIUV AXPO features low density and lightweightproperties, weighing only 60-75% of comparable PVC leather. Thissignificantly reduces product weight and transportation costs,making it the optimal choice for lightweight automotive seatdesigns.

Case｜ HIUV AXPO

1.3Product Responsibility

QualityManagement

In compliance with ISO 9001 requirements, HIUV implements a multi-dimensional qualitymanagement approach across production, R&D, quality control, and supply chain operations,consistently enhancing product and service quality with a customer-centric focus.

Production Quality

Control

R&D QualityManagement

Product QualityImprovement

Supplier Quality

Management

HIUV employs advanced production technologies and equipment to ensure efficient, stable, andreliable manufacturing processes. Production workflows are optimized using energy-efficienttechniques to minimize resource waste and boost productivity.

HIUV allocates significant resources to develop new products and improve existing ones,incorporating energy-saving and eco-friendly designs to meet evolving customer and marketdemands. Customer feedback is actively gathered and addressed through enhanced communicationchannels.

HIUV maintains a comprehensive quality management system encompassing inspection, control,and continuous improvement. State-of-the-art testing equipment and methodologies ensureproducts meet stringent customer specifications and industry standards.

HIUV implements rigorous supplier oversight through an evaluation system that enhances supplychain integration and transparency. This reduces logistics-related energy consumption andemissions, improving both ecological and social benefits.

QualityService

While prioritizing innovation and reliability, HIUV places equal emphasis on exceptional customer service. Weprovide tailored product solutions across specifications and categories, supported by ongoing marketresearch to promptly identify and fulfill client needs.

Customer Needs Our Response

ProductInnovation

HIUV bases its business development on R&D and innovation, upgrading its technological R&D system andstrengthening R&D infrastructure across the entire industry chain.Through continuous R&D innovation, the company further enhances product structures to help customersreduce costs and improve efficiency, while accelerating product iterations to maintain technologicalleadership.

PrivacyProtection

HIUV signs confidentiality agreements with clients to clearly define privacy protection standards. Per clientrequirements, product packaging undergoes encryption for privacy protection.Specific collaborations include detailed confidentiality clauses to ensure mutual protection andaccountability.

DifferentiatedProduct Services

HIUV provides tailored encapsulation solutions for diverse application scenarios (desert, snow, lakes, marineenvironments, etc.).The company collaborates with industry leaders to pioneer the adoption of AXPO synthetic leather inautomotive applications and achieve industrialization of PDCLC smart dimming films for intelligent glass,continuously optimizing product performance while reducing costs.

Rapid Response

HIUV swiftly develops and optimizes product performance to meet market demands for PV film quality andnew film categories.For emerging industry needs, the company independently develops relevant technologies and products,achieving rapid industrialization and scaling.

Supply ChainOptimization

HIUV establishes and refines supplier management systems covering key processes: supplier qualification,procurement contract management, raw material procurement progress tracking, inbound materialinspection. The company prioritizes ESG risk identification and control for suppliers.

33 34

Quality CultureDevelopment

Company-Wide Emphasis: All employees uphold quality as the corporate lifeline. Electronic archives forquality data records are established across subsidiaries. Monthly meetings consolidate qualitycomplaints and solutions, while sharing standards and reports among plants to collectively enhancequality management through mutual learning and real-time data sharing.Quality Management System: A structured system is implemented using standardization and PDCAmethodologies to elevate quality standards.Quality Traceability Mechanism: Full lifecycle quality management covers raw materials, production, andend-user product performance. Electronic tracking of product codes and manufacturing data enablesprecise batch tracing to swiftly identify and mitigate quality risks.Quality Assessment Mechanism: Quality issues are treated as priority cases, individually documentedand escalated for immediate client response and resolution. Monthly meetings specifically addressquality incidents and solutions, with follow-ups on prior issues. Quality performance is directly tied tostaff evaluations, incentivizing diligent quality oversight.

EmpowermentTraining

Dow-HIUV Collaboration for AXPO Leather Quality Enhancement

For any material-related performance gaps or improvement needs in AXPO leather supplied to clients, HIUV's strategic partner Dowengages its R&D and technical teams to jointly analyze potential issues and develop solutions.

Senior experts were invited to deliver courses on ISO management systems and professional skills, with 9participants earning professional certifications.Factories routinely organize quality training on standards, testing, issue analysis, and after-sale service tostrengthen staff competency.Proactive collaboration with suppliers and clients to jointly address quality-related challenges, improvingproduct quality while reducing costs.Case

35 36

CaseHIUV's Multi-Pronged Approach to Enhance Quality ManagementIn March 2024, the company invited senior experts to conduct training on ISO Quality, Environmental, and Occupational Health & SafetyManagement Systems, with 40 trainees passing the assessment to obtain internal auditor certifications.All production bases regularly conduct quality management training covering product standards, testing methods, anomaly analysis, andafter-sales handling to enhance employees' quality awareness and skills.The company launched the NAS Knowledge Base Platform, granting all employees access to quality management system documents. Newemployees are guided to utilize this platform for self-directed learning of company protocols.

SDGs Addressed in This Chapter

Circular Economy 49Green Manufacturing 45Climate Change Mitigation & Adaptation 37Water Stewardship 43

Biodiversity Conservation 50

Content

Environment

Energy Utilization 50

2.1Climate ChangeResponse

As a leading domestic polymer materials manufacturer, HIUV fullyrecognizes its emission reduction responsibilities. The company isestablishing a full value-chain greenhouse gas accounting system alignedwith mainstream international standards to proactively address climate-related risks. Concurrently, HIUV is advancing energy conservation andrenewable energy adoption at production bases, accelerating productcarbon footprint certification, and positioning itself as an industry pioneer inclimate action and green development.

Climate RiskManagement

As a member of the photovoltaic industry addressing climate change risks, HIUV is aligning withframeworks and recommendations from the Task Force on Climate-related Financial Disclosures(TCFD) and the International Sustainability Standards Board (ISSB)'sIFRS S2 Climate-relatedDisclosures.HIUV has established a board-led climate governance system. Board members possess extensiveexperience in polymer materials, enabling precise risk identification and management, seizingopportunities in the global low-carbon transition, ensuring effective climate risk management, andformulating climate action strategies for long-term development.Governance

Strategy

Risk Management

In accordance with the company's risk management framework, HIUV manages climate changerisks using scenario analysis under three models:

Accelerated Transition Scenario (<2°C/1.5°C); Current Policy Scenario (Baseline); High WarmingScenario (>4°C)Climate risk identification and assessment are fully integrated into strategic decision-making anddaily operations.

Accelerated TransitionScenario

<2℃/1.5℃ Baseline >4℃

Climate Risk IdentificationSpecialized climate risk initiativesidentify and assess vulnerable pointsand potential opportunities in thevalue chain. These initiatives will beincorporated into HIUV's routine riskidentification mechanisms.

Climate Risk Assessment &Prioritization

Risks/opportunities are prioritizedbased on likelihood, onset speed, andfinancial impact. Financialquantification of climate risks acrossdifferent scenarios enables HIUV tofocus on risks with significant financialimplications.

Climate Risk Response

Following board approval of theclimate risk inventory, theSustainability & ESG Officecoordinates cross-functionalresponses, including: environmentalrisk prevention measures; emergencymanagement systems

The company identifies and analyzes climate risk vulnerabilities and potential opportunitiesacross its value chain through value-chain mapping, climate database risk screening, and industryresearch. This process generates a comprehensive list of climate risks and opportunities, enablingrisk warnings and appropriate responses.

37 38

Board Strategy & ESG CommitteeAs the highest decision-making body for climate action, it convenes at least annually to reviewclimate strategies and targets, including mid-to-long-term plans, annual initiatives, and policyformulation/implementation, while monitoring responses to identified climate risks andopportunities.Strategy & ESG Committee ESG Working Group

The climate action decision-making body, chaired bythe Board Chairman (concurrently serving as ChiefSustainability Officer), regularly assesses climate-related risks/opportunities and develops responsestrategies.

The implementation unit for energy conservationand emission reduction, led by the President'sOffice, executes carbon accounting and reductioninitiatives.

ESG Officer Supply Chain Management Center

The central coordinating body for advancing thecompany's climate initiatives, with the BrandManagement Department serving as the lead unitresponsible for implementing HIUV's climate actioncommitments.

The environmental and emission reductionoversight unit for value-chain suppliers,managed by the Supplier & OperationsManagement Department, which calculates,drives, and evaluates supplier emissionreduction actions.

Governance

Bodies

Current Policy ScenarioHigh Warming Scenario

SeniorManagement

Operations

Teams

Climate Action

In 2024, we focused on internal operational carbon management through key initiatives including carbonaccounting, green office practices, waste reduction, and optimized energy use, systematically enhancingour energy conservation and emission reduction framework.

HIUV2024 total carbon emissions （tCO2e）

Scope 1：201,463Scope 2：78,022Scope 3： Not disclosed

Scope 1&2：

279,485

Operational Emission Reductions

Green Office

Comprehensive OA system usage to minimize paper consumption? Case

True sustainability requires every enterprise to address all operational and administrative details.HIUV integrates environmental principles into daily operations through multi-pronged green office initiativesthat encourage employee participation in energy conservation and ecological protection.Green Office Key Measures

To address growing market demand, we will actively implement carbon reduction projects, including: establishing 3-year emissionreduction targets and roadmaps; completing and expanding; photovoltaic power station projects; participating in green electricity trading;developing and launching more low-carbon products; strengthening supplier collaboration on emission reductionThese efforts contribute to achieving carbon neutrality goals.

Environmental Advocacy?Regular eco-awareness

campaigns and energyconservation promotion?Waste classification

implementation?Circular economy adoption

?LED and solar-powered

lighting systems；?Reduced printed materialsthrough paperless workflows;?Digital seal management tominimize physical documentsand couriers;

Energy ConservationDigital Work & GreenCommuting

?Prioritizing virtual meetings

via online collaborationplatforms;?Installing EV charging

stations to encourage newenergy vehicle adoption;

Group Carbon Emissions Structure (2024)

72%28%范围1范围2

27.92%72.04%0.05%用电用车空调

39 40

HIUV2023total carbon emissions （tCO2e）

Scope 1：310,376Scope 2：97,295Scope 3： Not disclosed

Scope 1&2：407,671

Year-over-yearcarbonemissionchange

31.44

%

Scope 1Scope 2

ElectricityVehicle FleetHVAC Systems

Renewable EnergyInitiatives

Wastewater, Gas, and

Noise EmissionsCompliance Rate:

100%

Hazardous WasteDisposal Rate:

100%

EnvironmentalPollution Incidents:

üEnvironmental protection facilities operate, undergo maintenance, and are repairedsimultaneously with production equipment to ensure stable performance;

üContinuous improvement in the stability and efficiency of environmental protection systems;üRegular monitoring of pollutant discharge levels to guarantee compliance with standards；üStrengthened pollution and waste treatment protocols；üInnovative resource utilization and online recycling to minimize waste generation；üWastewater, exhaust gases, and factory noise monitored for standard-compliant discharge.；üSolid waste is categorized for treatment; hazardous waste is disposed per regulations；üObtained discharge permits (including registration) for all pollution-generating processes,

ensuring licensed operations；üAdvanced cleaning technologies and production processes reduce hazardous waste generation；üEnsured workplace safety and employee health protection.

The company strictly complies with environmental regulations including the Environmental Protection Lawof the People's Republic of China in daily operations, rigorously implementing environmental protectionmeasures.

CO? emissions reduced (2024)

The company actively fulfills its carbon reduction responsibilities by implementing the followingmeasures across all facilities:

Installation of distributed solar power stations on factory rooftopsDeployment of new energy vehicle charging stations within plant areasEncouragement of employee rooftop solar installations at residential properties

HIUV Group Rooftop Solar PV Performance (kWh)

9,737 tCO2e

1,006,302

1,373,227

17,073,387

-2,000,0004,000,0006,000,0008,000,00010,000,00012,000,00014,000,00016,000,00018,000,000

2022年 2023年 2024年

Renewable energy share of total

consumption (2024)

10.6%

41 42

Waste ReductionInitiatives

CO? emissions reduced (2023)

783 tCO2eYoY: 1143.55% ↑

2.2Water ResourceManagement

Water resource management is a key sustainability strategic objective for HIUV. Incompliance with regulations including the Water Law of the People's Republic of China

and local laws in operational regions, the company has established theWaterConservation Management Policyand formed aWater Resource Management TaskForceled by the CEO. This task force is responsible for formulating water strategies andimplementing performance evaluations, adhering to the principle of "environmentalcompliance, water conservation, and emission reduction."

Water Conservation Measures

Water Withdrawal by Production Site (tonnes) - Pie Chart

In 2024, HIUV implemented technical upgrades to accelerate production equipment for photovoltaic module encapsulation films.These improvements achieved dual benefits: reducing both electricity consumption per unit of film production and cooling waterusage per product unit, thereby realizing water conservation, emission reduction, and lower energy consumption.Concurrently, the company conducted timely maintenance and servicing of cooling towers to enhance equipment performance.This initiative decreased water waste, improved cooling efficiency, and reduced overall production water consumption.

Case｜ The factory has reduced cooling water usage through equipment upgrades and maintenance.

HIUV has incorporated water resource management into its sustainable development strategy, adopting "environmental compliance, waterconservation, and emission reduction" as the guiding principle.The Water Resource Management Task Forcedrives initiatives includingwater conservation planning, implementation, performance evaluation, and continuous improvement. The company has established a two-tier control system (Manufacturing Division → Production Bases) to implement hierarchical management of production water use. Aperformance evaluation mechanism prioritizes water-saving targets, linking results to responsible personnel's KPIs to foster company-wideengagement in energy management, effectively enhancing the company's water resource awareness and utilization efficiency.In 2024, by analyzing water-saving potential across all production processes and implementing measures such as alternative water sourceexploration and production capacity utilization optimization, the company carried out water conservation campaigns and usage trackingthroughout the organization, significantly improving overall water conservation awareness among all employees.

43 44

Target Setting

Implement WaterConservationAssessmentsProduction WaterReuse

CompliantDischarge PlanningWater-SavingTechnologyUpgradesWater ConservationMonitoring &Supervision

?Establish a water resource management system to record, monitor, evaluate and improve water usage

efficiency.?Develop water conservation policies and plans that clearly define conservation targets, responsible

departments and implementation procedures to ensure effective execution of water-saving measures.?Collect usage data of production wastewater and equipment cooling water, incorporating

monthly metrics into departmental cost accounting.?Conduct evaluations of water usage costs, linking results to departmental and individual

performance metrics to incentivize water-saving initiatives.?Collect production wastewater and treat it by removing solid particles, metal ions, and other particulates

to achieve compliant discharge standards.?Collect equipment cooling water for recycling and reuse.?Evaluate the environmental impact of wastewater discharge by analyzing sources, types, and volumes of

effluent.?Develop methods to recover reusable resources from wastewater to achieve circular utilization of energy,

water, and materials.?Implement technical, managerial, and monitoring measures to ensure full compliance with discharge

regulations and eliminate pollution risks.?Implement equipment technical modifications to reduce energy consumption and conserve water.?Establish production water recycling systems.?Conduct water-saving retrofits for water-using equipment.?Form a dedicated water resource management team with assigned supervisors.?Conduct monthly statistics on production and domestic water usage to promote water-saving awareness

and implementation of conservation measures.?Monitor wastewater discharge.

Total WaterConsumption182149 t

Water Recycling Rate 87.60 %

Total WaterConsumption321587 t

Water Recycling Rate

84.31 %

YoY Change in TotalWater Consumption

43.36 %

YoY Change inRecycling Rate

3.29 %Group HQ (Jinshan+Zhangjiang)

PinghuTaizhou

ShangraoVietnamChangzhou

2.3CleanProduction

HIUV continuously refines environmental management in production operations,increasing environmental protection investments to reduce ecological impacts. Incompliance with national clean production audit policies, the company has establishedan environmental management system led by the EHS Management Committee.In 2024, HIUV's total environmental protection investment reached 4.7525 million RMB,with zero incidents of major discharge violations or environmental non-compliance.

As of the end of the reporting period, HIUV possesses:

5 production bases equipped withphotovoltaic power stations

3 production bases meetingclean production standards

5 operational headquarters andproduction bases achieving 100% ISO14001 environmental management systemcertification coverage

green electricity

17.07mKWh/year 3 bases 5 bases 100 %

EnvironmentManagement

To ensure effective execution of environmental management systems and enhance overallenvironmental governance, HIUV conducted regular specialized inspections and training programs.The company implemented standardized environmental management initiatives, developingenvironmental assessment checklists based on regulatory requirements. Comprehensiveinspections were performed at all production bases to identify and rectify potential hazards, whilesystematic training programs elevated environmental management capabilities across facilities.HIUV's Core Internal EnvironmentalManagement Documents

Environmental Protection Control ProceduresWaste Gas Management RegulationsTechnical Guidelines for Waste Gas TreatmentFacility Operations (Newly Added)Wastewater Management RegulationsSolid Waste Management RegulationsHazardous Waste Management TechnicalGuidelines (Newly Added)

Monthly internal training

sessions

Pre-shift training for

production teams

Annual environmentalcompliance violations with

issues identified andresolved through on-site

inspections

12 15 min/shift

To standardize tracking of environmental protection investments, the company added dedicatedaccounting categories in the financial ERP system for improved data collection and analysis ofenvironmental expenditures.

Waste GasManagement

The primary gaseous pollutants generated during HIUV's production processes include VOCs, ammonia, andfluorides. The company has developed tailored emission reduction plans for each production stage. Duringthe reporting period, all 5 operational HQ and production bases underwent individual inspections andemission reduction assessments to ensure full compliance with standards; zero incidents of non-compliantemissions; adherence to clean production requirements

▼ HIUV 2024 Waste Gas Emission Statistics

7.08 million m? 0 t 0 t 0 t 7.048 t

0 t 0.076 t 0.757 t

1. In 2024, the company's Shangrao production base initiated upgrades to its environmental protection facilities, significantly enhancingwaste gas collection and treatment capacity.

2. During the construction of the Pinghu production base in 2024, the company prioritized investments in environmental protection facilitiesand workplace safety measures to ensure clean production standards.

3. In 2024, the company installed rooftop photovoltaic power stations at its Pinghu production base to increase renewable electricitygeneration capacity.

4. In 2024, the company planned rooftop photovoltaic installations at its Gansu production base in preparation for expanded renewableenergy output.

45 46

Total waste gasemissions

Nitrogen oxides(NOx) emissions

Sulfur oxides (SOx)emissions

Particulate matter(PM) emissions

VOC

Total nitrogenemissions

Ammonia nitrogenemissions

COD

In 2024, multiple HIUV production bases implemented water conservation projects through: 。The company increased production equipment speed and efficiency to reduce energy consumption, including reducing totalcooling water usage. Simultaneously, we evaluated and tested cooling tower equipment, precisely calculating usage efficiencyacross different brands and the impact of maintenance on water consumption metrics. Through comprehensive consideration ofcooling tower supplier selection and regular maintenance measures, we reduced water consumption.

WastewaterManagement

▼ HIUV 2024 Wastewater Discharge Statistics

WastewaterDischarge

0.031 kt

COD emissions

0.0022 t

Ammonia NitrogenDischarge Volume

0.3 kg

Total PhosphorusDischarge Volume

0.002 kg

Total SuspendedSolids DischargeVolume

0.3 kg

Solid WasteManagement

HIUV has established a comprehensive system for technical guidance, regular diagnosis, andevaluation to enhance the overall waste management level;For the treatment of hazardous waste, we entrust third-party organizations with a hazardous wastemanagement license for utilization or disposal, and conduct full-process tracking to ensure theclosed-loop management of hazardous waste;For non-hazardous waste, we prioritize external sales for comprehensive utilization, with disposalas a secondary approach, aiming to improve the recycling rate of non-hazardous waste.

▼ HIUV Solid Waste Discharge Statistics

We classify generated wastewater into industrial production wastewater and employee domestic sewage,implementing corresponding treatment methods for each category.Mainly originates from production line cooling cycles, equipment cleaning, and facility maintenance. Wemaximize utilization of recyclable wastewater, while treating non-recyclable wastewater to meet dischargestandards.

47 48

In 2024, HIUV launched a special project focused on the resource utilization and emission reduction of solid waste.The company has rectified the processes involved in the generation, storage, and disposal of non-hazardous waste, with aprimary focus on controlling the source of waste generation. Through online recycling, improvements in process technology,and other approaches, we aim to reduce waste generation while increasing the proportion of recycling, thereby reducing thetotal amount of solid waste produced by the company.

2024Hazardous Waste

32.5 t

ComplianceDisposal Ratio

100 %

2023Hazardous Waste

45.6 t

Total

28.73 %

2024Non-HazardousWaste98 t

2023Non-Hazardous

Waste

151 t

Total

35.10 %

ComplianceDisposal Ratio

100 %

2.4

Circular Economy

HIUV adheres to the 14th Five-Year Plan for Industrial Green Development,the14th Five-Year Plan for Circular Economy Development, as well as theEuropeanUnion's Circular Economy Action Planand other relevant domestic andinternational policies and initiatives. We uphold the product design philosophyof minimizing environmental impact and emphasize energy conservation andenvironmental protection throughout the entire product lifecycle.While ensuring product quality, we reduce the environmental impact ofpackaging by using renewable, recyclable, and environmentally friendlymaterials. At the same time, we optimize logistics and the construction ofproduct recycling systems, promoting the sustainable development of theindustry chain.

Process Concept Annual Achievements

?Implement the "Four New" initiative, upgrading processes

and technologies with new materials, processes, technologies,and models.?Follow green design principles to reduce the carbon footprint

throughout the product lifecycle.?Improve component efficiency and lifespan.?Enhance the quality and performance of new components.?Design for better recyclability and higher product yield.?Develop recycling technologies to minimize environmental

impact after component retirement.

?Successfully developed green, eco-friendly AXPO

innovative products, reducing the carbon footprint oftraditional synthetic leather.?Developed component recycling technologies,providing solutions for environmental impact aftercomponent retirement.?Introduced Zero-Migration Light-Coversion Film,improving conversion efficiency of HJT components.?Launched specialized adhesive films for BIPV

components, enhancing component quality.

?Closely follow relevant policies such as the14th Five-

Year Plan for Industrial Green Development, practice

green production, build green factories, and reduce

product carbon footprints.?Source Reduction: Improve material efficiency within

standard limits, achieve product recyclability and

reparability, and ensure that component designs lower

costs, increase efficiency, and guarantee quality,

thereby enhancing market competitiveness.?In the production and manufacturing of photovoltaic

products, prioritize the use of recyclable and

renewable materials.?In the warehouse process, follow internal packaging

material recycling procedures, registering daily

information on items and quantities to be recycled,

along with actual recycling records.

?Collaborated with suppliers to design and promote

recyclable iron packaging, reducing industrial waste.?Enhanced adhesive film packaging design to reduce

loss rates and increase recyclability.?Implemented technological improvements and

equipment upgrades in the production process to

reduce loss rates.?Upgraded production lines to increase automation in

the packaging process.

?Promote circular packaging in the product

transportation process, enabling packaging to bereused from the transportation end to the client andback to the shipping end.?Enhance the level of informatization across the

packing, storage, and transportation processes toimprove resource utilization efficiency.

?Enhanced green logistics capabilities, promoting

reduced emissions and carbon footprint in deliveries.?Improved warehousing informatization with an

information management system to boost efficiency.?Integrated logistics and warehousing: Real-time

coordination of shipping plans and orders to

optimize routes and transport methods, utilizing

multimodal transport (rail-truck, rail-sea) and

initiatives like forward/central warehouses to reduce

logistics waste.

ProductDesign

?Strictly adhere to the Industrial Emissions Directive IED

2010/75/EU and the EU WEEE Directive for thescientific treatment of retired components.

?Actively engaged in scientific research on component

recycling innovation projects.?HIUV’s component recycling innovation technology

achieves a silicon-based photovoltaic panel recycling

rate of over 95%, with future research aiming to reach

100%.

ProductRecycling

49 50

Green Packaging

Logistics &Transportation

Conduct ecological baseline surveys at project sites to understand local species and theirgrowth characteristics, with a focus on biodiversity conservation factors, prioritizing theprotection of local species and their habitats.Strictly comply with relevant biodiversity protection laws and regulations, and carry outenvironmental impact assessments according to the "Three Simultaneities" principle.Use materials, components, and equipment that support biodiversity protection duringconstruction.Focus on controlling pollutants that could significantly impact the surrounding ecologicalenvironment.Carry out ecological restoration in affected areas during construction and ensure propermaintenance afterward.Regularly inspect environmental risks and promptly carry out protection and restoration work.Conduct ecological protection awareness training for employees to enhance their awareness ofbiodiversity conservation.

Planning andDesign Phase

HIUV values the cultivation of employee biodiversity protection awareness and integrates it into daily business operations.

ConstructionPhase

Operation andMaintenance Phase

2.5BiodiversityConservation

HIUV places great importance on biodiversity conservationduring production operations and project development. Werequire all construction projects to identify and assess theimpact on ecosystems and biodiversity during the designphase, prioritizing avoidance principles to minimize the impacton ecologically sensitive and vulnerable areas.In 2024, we did not operate any owned, leased, or managedsites located in or adjacent to protected areas and biodiversity-rich regions outside of protected areas.

2.6

EnergyUtilization

HIUV places great emphasis on energy efficiency and, through technologicalimprovements and operational optimization, effectively enhances energy utilizationefficiency. While reducing energy consumption, the company is continuouslytransitioning to clean energy through the use of renewable energy sources. In recentyears, HIUV has been actively installing photovoltaic power stations to increase cleanenergy generation and raise the proportion of clean energy used by the company.In 2024, by installing rooftop power stations at new production bases such as Pinghu,clean energy generation increased by 1143.55% compared to 2023, with renewableenergy accounting for 10.6% of total energy consumption.

SDGs Addressed in This Chapter

Sustainable Procurement 54Supply Chain Management System 51Supplier Collaboration and Empowerment 57

Content

Supply Chain

3.1Supply ChainManagement System

HIUV strictly complies with relevant laws and regulationssuch as the Tendering and Bidding Law of the People'sRepublic of China and other applicable laws in thecountries and regions where it operates. The company hasestablished a comprehensive supplier managementprocess, covering supplier entry evaluation, riskidentification, performance assessment, annual audits, andcorrective actions for non-compliance, ensuring fulllifecycle management of suppliers and minimizing supplychain risks.

HIUV has developed theSupplier Management Procedures, SupplierRecruitment Management Measures, andSupplier CSR ManagementMeasures, and during the year, revised and added 5 internalmanagement documents, including Supplier DevelopmentManagement, Supplier Exit Management, and procedures for supplierperformance and communication management. These documentsbreak down the management framework into detailed rules andprocesses, achieving a systematic and standardized approach tosupplier control.

Supplier ManagementMechanism

As of the end of thereporting period, HIUVhad suppliers in total

HIUV 2024 Supplier Overview (Unit: Entities)

● China Mainland 69

● HK/MO/TW 1

● International 9

● Tier-1 Suppliers 15

● Non-Tier-1 Suppliers 64

○ Key Suppliers 15

HIUV is committed to building a fair, just, transparent, and efficient supplier management system.In 2024, HIUV enhanced its group procurement structure for suppliers by clarifying roles and responsibilities at all levels andoptimizing procurement processes. This has led to more efficient and professional division of labor and collaboration, ensuringrefined management with dedicated personnel for each function.

Decision-making Level

Execution

Level

Procurement

Personnel

?Responsible for setting the direction and strategy for supplier management, aswell as formulating supplier management policies and internal control/auditprocedures.?Holds biannual meetings for regular communication with strategic suppliers.?Comprised of teams from procurement, quality, technical, bidding, and risk control

departments.?Jointly responsible for establishing, reviewing, and implementing supplier management

rules.?Holds quarterly meetings to conduct supplier evaluations, monitor supply chain

irregularities, and resolve supplier-related business appeals.

?Responsible for daily supplier management and procurement operations, including

handling purchase orders and process management, standardizing procedures and

systems, monitoring operational status, and collecting related complaints.

HIUV classifies suppliers based on business characteristics, cooperation status, and other dimensions, and conducts regularevaluations—monthly, semi-annually, or annually—on aspects such as product and service quality, delivery capability,technical competence, and ESG performance.Based on the evaluation results, suppliers are categorized into three tiers: A, B, and C, with corresponding incentive orpenalty measures implemented for each level.

51 52

HIUV Supplier CSRLifecycle Management

Admission

Disqualification

Pre-qualification

Supplier Audit

AgreementSigningDue DiligenceCSR PerformanceEvaluationempowermenttrainingIncentivesSupplierDisqualification

?Evaluate suppliers' CSR performance, including signing rate of theHIUVSupplier CSR Code of Conduct, ISO certification rate, and CSR thresholdcompliance.?Prioritize ISO-certified suppliers.?Required documents:

Supplier ESG Risk Assessment Form, SupplierIntellectual Property Questionnaire.?Conduct audits based on risk levels, covering labor rights, environmental

protection, product traceability, and business ethics.?Zero-tolerance on issues such as child labor and forced labor—non-

compliant suppliers are disqualified.?Suppliers failing the audit must take corrective actions; if re-audit fails,

admission is denied.?Suppliers must sign theHIUV Supplier CSR Code of Conduct,

Confidentiality Agreement, Intellectual Property Agreement,andIntegrity Agreementto confirm their commitment to socialresponsibility. Admission is granted only after signing.?Conduct online and on-site audits to identify CSR risks and propose

corrective actions.?High-risk suppliers are required to close issues within a set timeframe,with monthly monitoring of closure rates.

?Enforce supplier removal for violations of CSR red-line policies.?All suppliers are regularly reminded of HIUV’s non-negotiable CSR

clauses.

?Regularly monitor and evaluate supplier CSR performance, ensuring

continuous improvement.?Host CSR workshops and training to enhance supplier awareness and

capabilities.

ApprovedSupplier

In 2024，suppliers underwentannual due diligence audits in total:

Spend Coverage

50 %

Suppliers with Significant NegativeImpact and Terminated forSignificant Negative Impact

HIUV conducts internal and external evaluations to assess the environmental and social risksof suppliers.During the supplier onboarding process, we implement a strict social responsibility riskscreening. In the supplier management process, we introduce authoritative third-party risktools to comprehensively monitor suppliers' business qualifications, legal litigation records,compliance risks, and environmental violations.In 2024, HIUV carried out annual CSR due diligence, identifying supplier social responsibilityrisks, covering areas such as environmental management, labor rights protection, health andsafety, business ethics, and anti-corruption. We established and implemented a supplier ESGrisk survey, requiring procurement personnel to document supplier performance in theSupplier ESG Risk Survey Form. Additionally, we conduct annual supplier environmentalmanagement and social responsibility audits and evaluations. Based on evaluation scores andrankings, suppliers are classified and managed accordingly. For high-risk suppliers, we activelyguide them in necessary corrective actions and conduct regular on-site audits to ensure theclosure of the corrective loop.

3.2

SustainableProcurement

HIUV implements sustainable procurement, committed to building a green andresponsible supply chain. We actively encourage suppliers to improve their environmentaland safety management performance, ensuring the protection of labor rights andworking with suppliers to create a dignified and ethical workplace environment.In line with ISO 26000, SA8000 standards, and relevant laws and regulations, we havedeveloped theSupplier CSR Management Measures. These measures integrate CSRmanagement into the entire procurement lifecycle, forming a comprehensive compliancemanagement system from supplier development to exit. This promotes sustainableprocurement and contributes to building a green and responsible supply chain.

HIUV places great emphasis on CSR management within the supply chain and hasestablished a comprehensive supplier CSR lifecycle management system. By the end of2024, the signing rate of the HIUV Supplier CSR Code of Conduct reached 100%, with100% of new suppliers being selected based on social and environmental standards.Supply ChainResponsibilityManagement

53 54

To ensure the stability and security of the supply chain, HIUV has established a comprehensive riskmonitoring mechanism, regularly assessing and updating supply chain risks to ensure the timelinessand effectiveness of risk management.

Supply Chain RiskManagement

Developed theGlobal CustomsCompliance Management Measures

to conduct annual assessments ofimport and export control tradecompliance risks and take timelypreventive actions.

Established a specialized department toassess market trends, supplyfluctuations, and other risks on amonthly basis, and formulate timely riskresponse plans.

Developed theSupplier Due DiligenceManagement

Guidelinesto regularlyaudit suppliers' compliance with the

Supplier CSR Code of Conduct.

Trade Risk Supply Fluctuation Risk ESG Risk

HIUV actively promotes the development of a green supply chain by prioritizing suppliers certifiedwithISO 14001 Environmental Management System. Environmental performance is integrated intosupplier evaluations, and preference is given to low-carbon and environmentally responsiblesuppliers under equal conditions.Green SupplyChain Development

HIUV has clearly defined environmental requirements for suppliers, including：

?Compliance with national environmental protection laws or relevant international standards, with lawful discharge of wastewater,waste, and emissions.?Implementation of green supply chain practices, including energy conservation, use of renewable energy, reduction of resource

consumption, and emission control.?Avoidance, reduction, or offsetting of significant impacts on biodiversity during production and operations.?Close attention to environmental legislation at both international and local levels, and active response to environmental impactassessments.HIUV has established a supplier environmental violation monitoring and management mechanism todrive corrective actions and assist suppliers in eliminating adverse records.

HIUV has established the HIUV Supplier CSR Code of Conduct, which outlines clear standards forlabor rights protection across its supply chain. These include anti-discrimination, prohibition ofchild and forced labor, fair compensation, freedom of association and collective bargaining, andresponsible sourcing of raw materials. The Code provides behavioral guidance to help suppliersfulfill their human rights responsibilities and manage social compliance.We require and encourage suppliers to create a fair, safe, and healthy working environment fortheir employees.HIUV is committed to building a “green, transparent, and compliant” supply chain with itspartners, promoting ethical business conduct and integrity throughout upstream and downstreamoperations.In 2024, HIUV achieved a 100% signing rate of integrity agreements with suppliers. We conducted79 planned supplier visits, held 10 communication sessions with logistics suppliers, organized 35training sessions, and recorded 120 training participations.

Protection of LaborRights in the Supply Chain

Supplier Integrityand Compliance

Supplier IntegrityAgreement Signing Ratein 2024:

100 %

onboardingstagePost-engagement

Business ethics is one of the key selection criteria to ensure that all partnersuphold principles of integrity and ethical conduct.。HIUV conducts regular follow-up assessments to ensure suppliers remainfully compliant throughout the cooperation, with zero tolerance forcorruption or bribery.

1 98 h 100 %

HIUV has established a strict supplier traceability management system, enabling full-process monitoringfrom raw material entry to final product output, ensuring reliable sourcing and qualified quality.We maintain long-term, stable partnerships with traceable and quality-assured suppliers to safeguardproduct safety and traceability.In 2024, HIUV optimized its information management system and launched a digital traceabilityplatform, enabling full-process management including raw material tracking, data analysis, and qualityclaims.

Supply ChainTraceability

▼ HIUV Supplier Environmental and Social Management System Certification Status

20 65 79

HIUV Supplier Screening by Social and Environmental Standards (2022-2024)

70% 70%

55 56

Number of suppliers withISO 45001 certification

Number of suppliers withISO 14001 certification

Number of suppliers withISO 9001 certification

Percentage of suppliers screenedusing social standards

Percentage of suppliers screened usingenvironmental standards

▼▼

Supplier IntegrityCompliance Trainings

Supplier IntegrityCompliance Training Hours

Supplier Integrity ComplianceTraining Coverage

3.3

Supplier Collaborationand Empowerment

HIUV upholds an open, collaborative, and mutually beneficialapproach to maintain close communication and cooperationwith suppliers. We promote information exchange andtechnology sharing, while actively supporting suppliers toovercome market challenges and achieve shared growth andprosperity.

HIUV has established a relationship of mutual trust and support with suppliers, and builtdiversified communication channels. In 2024, we introduced a new SRM supplier collaborationsurvey, covering areas such as management rules, process transparency, collaboration efficiency,and business ethics. A total of 79 questionnaires were distributed and completed, with resultsshowing high supplier satisfaction in management rule awareness, transparency, and paymenttimeliness. No corruption issues were identified.

SupplierCommunicationand Collaboration

Upholding the principle of empowerment, HIUV provides systematic training and technicalsupport to help suppliers enhance their ESG practices and promote sustainable supply chaindevelopment.In 2024, HIUV conducted 79 training sessions and carried out on-site visits and CSR duediligence for 7 key suppliers. Through discussions on environmental management, occupationalhealth, production safety, and social responsibility, we helped suppliers build awareness andstrategies for sustainable development.

SupplierEmpowermentand Support

57 58

Total Sessions Total Training Hours Total Participants 79 98 h 120 (supplier representatives)

HIUV 2024 Supplier Training Performance

Daily BusinessCollaboration

RegularCommunication

BusinessCommunication

Open Complaint

Channels

ComprehensiveBusinessCommunication &CollaborationPurchase OrderConfirmation &ExecutionDaily Communication &Coordination

Regular Supplier VisitsExecutive-LevelEngagementSupplier Reception &Onsite VisitsRegular Training &ExchangesSupplier Audits &Inspections

Quality IssueComplaintsTechnicalCommunication &CollaborationOnsite GuidanceTechnical Exchanges& Forums

Joint R&DInitiatives

Joint New ProductDevelopmentTechnical Forums &WorkshopsOnsite ProcessImprovement &TrialsCustomer IssueResolution

In 2024, HIUV and Dow Chemical jointly advanced the R&D and market promotion of a new eco-friendly surface material.To meet the growing demands for lightweight, energy efficiency, extended range, and environmental performance in new energyvehicles, as well as the rising consumer preference for personalized interior designs, HIUV introduced an innovative andsustainable surface material—AXPO, empowering the transformation of vehicle cabins in the new energy era.On May 25, the next-generation seat using HIUV's AXPO as the surface leather was officially launched. This seat was jointlydeveloped by HIUV, Dow, Zhuojun, and Deren, aiming to drive innovations in lightweight, low-carbon, and customized solutionsfor the automotive industry.Mr. Yu Hang, Vice President of HIUV, joined representatives from Dow, Fusheng, and Deren at the launch event, engaging in aroundtable discussion on the theme of automotive cabins in the new energy era.HIUV AXPO features outstanding properties including excellent lightweight performance, superior anti-yellowing, lower VOCemissions, exceptional low-temperature durability, and is free from harmful plasticizers, flame retardants, and solvents. It meetsthe demands for lightweight and personalized designs in the NEV market. Moreover, AXPO offers a reduced carbon footprint,contributing to a greener, safer, and more comfortable global environment.The company hasestablished asupervision hotline[phone]) and adedicated email([e-mail])to receive reports.Reported issues areinvestigated byresponsible internaldepartments, andrelevant personnel areinterviewed accordingly.

Employee and

Community

SDGs Addressed in This Chapter Employee Development 61Labor Rights 59Health and Safety 67Social Responsibility 70

Content

Rural Revitalization 70

4.1Labor Rights

HIUV is committed to the United Nations Global Compact and its principles in the areas of humanrights, labor, environment, and anti-corruption.The company strictly complies with all applicable labor rights protection laws and regulations inChina and in all regions where it operates, while actively respecting and protecting labor rightsacross its value chain.To proactively identify and assess potential human rights impacts and risks, HIUV has establisheda company-wide risk identification and regular review mechanism. This framework encompasseshuman rights risk assessments across its own operations, business activities, supply chain, and anynew business relationships—including mergers, acquisitions, and joint ventures.HIUV is committed to working together with employees, suppliers, and other business partners tobuild a fair, open, inclusive, and harmonious working environment.The company has established internal policies such as theHIUV-HR-WIQ-018 RecruitmentManagement System,Personnel Business Management System, andLabor Protection SuppliesManagement Regulationsto fully implement labor contracts and collective agreements. Thesepolicies ensure that employee rights, including labor remuneration, rest and vacation, occupationalhealth and safety, social insurance, and vocational training, are safeguarded in accordance with thelaw. We strongly oppose all forms of discrimination, including but not limited to ethnicity, race,nationality, religion, gender, age, sexual orientation, disability, and marital or reproductive status.We firmly reject and strictly prohibit forced labor and child labor.At the same time, we respect employees' legal rights to freedom of assembly and association, andare committed to creating a diverse, equal, and inclusive work environment.

Employee Recruitment Employee Onboarding Employee Departure?Verify the identity and age ofapplicants to ensure thatemployees meet the legal laborage requirements as stipulated bynational laws and regulations,preventing incidents of child labor.?Confirm that the terms of

employment match the actualemployment situation.

?Verify that the employee's signature

on the labor contract is voluntary,ensuring that the employee is notcoerced into signing due to threats,withholding of documents, or otherreasons, in order to preventincidents of forced labor.?The onboarding system will perform

age verification and control throughdigital means, strictly verifying thatthe age information on theemployee's ID card is accurate.

?Verify that the employee's

resignation notice complies withlegal requirements.

We deeply understand that protecting employee rights is the responsibility of every enterprise. In the recruitment and employmentprocess, we legally safeguard the basic rights of every employee. We continuously improve the Employee Recruitment ManagementMeasures, establish and perfect a market-oriented personnel selection mechanism, and treat employees of different genders, ages,ethnicities, and cultural backgrounds equally, providing all candidates with equal employment opportunities.In line with the company’s development plan, we implement an open recruitment system, expand diversified recruitment channels, andmaximize the public disclosure of job vacancies. We adopt standardized and regulated recruitment processes, comprehensively assesscandidates, and select the best talents. This ensures that every employee enjoys equal opportunities in terms of career development, salary,and benefits, while also ensuring that female employees have the right to enter different decision-making leadership positions.

Case｜ Skilled Personnel TrainingTo meet the diverse and comprehensive learning needs of employees, we have tailored a "mandatory course" program thatenables employees to quickly acquire essential knowledge and skills, fostering skill development and enhancing employeecompetitiveness.

59 60

4.2EmployeeDevelopment

Based on the business development needs, HIUV formulatescorresponding talent attraction strategies to provide employees with clearcareer development paths, ensuring a talent reserve for businessinnovation and upgrading, and creating a win-win platform for employeegrowth.

HIUV Employee Structure in 2024 (Unit: People)

● 男性

● 女性

● 中国大陆

● 港澳台

● 海外

● 30岁以下 ● 大专以下

● 31-50岁 ● 本科及大专

● 51岁及以上 ● 研究生及以上

Diversity, Equity,and Inclusion

HIUV upholds the values of openness, inclusiveness, and equality, striving to foster a diverseworkplace culture. We do not discriminate based on race, color, gender, religion, age, nationality,social or ethnic background, sexual orientation, gender identity or expression, marital status,pregnancy, disability, or veteran status. We embed equality throughout the entire recruitmentand employment process.In 2024, with our accelerating internationalization, our workforce has expanded to includeemployees from Southeast Asia, India, Europe, Australia, and other regions—encompassingdiverse nationalities and ethnicities. The number of disputes arising from employmentdiscrimination: 0.

We advocate for gender diversity inthe workplace, emphasizing equality

and fostering an inclusiveenvironment where both male andfemale employees have equal accessto development opportunities and

career growth.

We promote a balanced agestructure by welcoming youngtalent while valuing the expertiseand contributions of experienced

core employees.

We actively attract talent fromacross the globe. Our workforceincludes employees from multiplecountries and regions, reflecting a

diverse and international team.

▼ Total High-Level Talents Attracted▼ Total Overseas Employees (Non-

Chinese Nationality) Attracted

▼ Total Local Employees

Recruited at Overseas Sites

2024 2024 2024

We attract various types of talent from society and activate internal personnel movementthrough multiple channels. By the end of 2024, the company has a total of 856 employeesworldwide, with 619 males and 237 females. There are 21 ethnic minority employees and 8foreign employees, with 53.10% of employees being between the ages of 31 and 50.

TalentAttraction

Total number of

employees worldwide Male Female

% %

72.3

27.7

按性别划分按区域划分

按年龄划分

按学历划分

61 62

By GenderBy Region

By Age

By Edu. BG

malefemale

<3031-50

>50

ChinaMainlandHK/MO/TWInternational

Below CollegeBachelor's/CollegePostgraduate

Gender DiversityAge DiversityGeographic Diversity

CareerDevelopmentPlanning

We are deeply committed to cultivating employee capabilities and advancing their career development.Guided by our talent philosophy of continuous innovation and pragmatic action, we strive to optimize ourtalent development mechanisms and build robust talent pipelines. This creates an enabling environmentfor employee growth and injects lasting momentum into the company’s sustainable development.We prioritize building a scientific training system by analyzing training needs based on corporatedevelopment, job requirements, company culture, and individual career goals, and we develop annualtraining plans accordingly.We also emphasize a culture of shared growth with our employees, leveraging performance-based andequity-based incentives to foster collective development.

OnboardingTraining

We place great emphasis on onboarding new employees by designing a comprehensive trainingprogram to help them become familiar with company policies, understand corporate culture, andacquire essential knowledge on safety, 5S, and quality. The training also includes job-specificskills to accelerate their integration process, ensuring a smooth transition into their roles.The new employee training coverage rate reached 100%.

LeadershipTraining

To build a high-performance organization and nurture a strong core team, HIUV regularly conductsleadership training through a combination of empowerment, project-based learning, and one-on-one coaching. These programs are designed to help employees acquire and develop leadershipcompetencies, equipping them to take on managerial and leadership roles within the organization.Key company personnel and safety management staff participated in specialized training programssuch as Red Cross First Aid, fire station skills training, and internal auditor training for managementsystems. In addition, HIUV continues to host the “Pioneer Training Camp” to further enhancemanagerial capabilities.

EmployeeTraining System

?We provide comprehensiveonboarding programs for newemployees, including orientationsessions, the "Rising Star" trainingprogram, and probationary training.?A combination of online and offline

formats, with synchronized practicalexercises to ensure effectivelearning and integration.

?We offer leadership development

programs to enhance strategicthinking among mid- to senior-level management. These trainingsaim to strengthen leadershipcapabilities and build a robustpipeline of high-level talent.

?We conduct hands-on training for

special job roles and professionaltechnical training to help employeesenhance their expertise. These effortssupport the development of a skilledand specialized talent team.

Onboarding TrainingLeadership TrainingProfessional Skills Training

Employee Training Performance in 2024

Total Training Sessions in2024

Total Number of TrainedEmployees

Total Employee AttendancesTotal Training Hours

8433

4900 h

63 64

Skills TrainingPrograms

HIUV provides customized “core curriculum” training to meet employees' diverse andcomprehensive learning needs. These programs enable employees to quickly acquire essentialknowledge and skills, enhance their professional capabilities, and strengthen overall competitiveness.

HIUV ensures that its compensation system is compliant, fair, and reasonable, and firmly adheres tothe principle of equal pay for equal work.In 2024, based on both domestic and international markets, we updated and iterated our internalsystems and compensation structures. We developed a differentiated incentive policy framework,linking various functional roles to specific operational indicators. A differentiated distribution planwas implemented to fully motivate employees and allow them to share in the company'sdevelopment achievements.Providing Diverse Non-Salary Benefits. In addition to statutory annual leave and regular sick leave,we have added additional welfare benefits, such as welfare holidays, birthday benefits, and holidaybonuses, to enhance employees' sense of satisfaction and happiness.

EmployeeCommunication

In 2024, the social insurancecoverage rate for employeesin Mainland China:

100 %

▼ Organizing Employee Forums ▼ Participants in Employee Forums ▼Employees Engagement Satisfaction Ratio

Conducting Monthly Employee Satisfaction Surveys and Enhancing Service Quality

▼ Feedback Closure Rate

feedback received through theopen mailbox：

Company mailbox feedbackclosure rate:

%

90%

nearly 30 pieces

0 % 0 %

65 66

Case：Market and R&D SeminarsThe company regularly organizes seminars on market trends andR&D developments. These sessions facilitate discussion onindustry dynamics and technological advancements, aiming tojointly develop products that align with industry evolution andcustomer needs.

Case：First Aid Training

To enhance awareness of workplace safetyand health, HIUV organizes first aid trainingsessions to improve employees’emergency response capabilities.

Case：HR Team Empowerment Program

The HR team implements tailored training programs to strengthenits professional management skills and improve operationalefficiency.

4.3Health &Safety

Employee health and safety is a fundamental cornerstone for the stable operation andbusiness development of the company. At HIUV, we always prioritize the life andoccupational health of our employees, upholding the philosophy of "life above all."We strictly comply with laws and regulations such as theWork Safety Law of the People'sRepublic of Chinaand theLaw of the People's Republic of China on Prevention andControl of Occupational Diseases, and we have established and continuously improvedour occupational health and safety management system.We rigorously implement a wide range of occupational health and safety measures,effectively enhancing our safety production capabilities and ensuring the safety and well-being of every employee.Employee Occupational Health and Safety Protection Measures

Safety Culture TrainingThe foundation of the company's entire safety management system is built upon theidentification of hazards and the results of risk assessments. Based on these outcomes,mechanisms, measures, and plans are established and improved to prevent various hazards orrisks. The company conducts regular and ad hoc employee safety education and training sessionsto uphold the principle of "safety first, prevention-oriented."

Occupational Disease Prevention and Health Protection

We prioritize the physical health of our employees by providing annual medical check-ups andhealth consultation services. These initiatives help employees monitor their health status, enableeffective health interventions, and prevent occupational diseases. As a result, employees' senseof belonging and identification with the company has been significantly enhanced.

Strict Accountability and Assessment

We implement strict safety performance assessments and accountability to reinforce the primaryresponsibility for production safety. By strengthening risk prevention and control, emphasizingsafety standardization, and building robust safety infrastructure, we continuously improvehierarchical, professional, standardized, and digital safety management capabilities. These effortshelp create a safe and stable environment for the company’s development.

Case：Fire Drill and Safety Training

67 68

On the occasion of National Fire Safety Day on November 9, Pinghu HIUV Applied Material Co., Ltd. organized a “119” FireDrill event. Fire safety professionals were invited to deliver a Fire Safety Classroom, combining theoretical instruction withhands-on emergency drills to enhance employees’ fire response capabilities.HIUV emphasizes prevention over disaster recovery. By preparing comprehensive emergency supplies and developing adetailed fire drill plan, the company established clearly defined emergency teams to ensure that all aspects of fire safety arethoroughly implemented and responsibilities are clearly assigned.

Support LocalEmployment

HIUV follows the principle of "adapting to local conditions" and has established a localizedrecruitment system. Except for positions that require specialized technical personnel in fields thatare relatively scarce locally or are not available in the region, all other positions prioritize localapplicants, actively promoting local employment development.

EmployeeBenefits

HIUV continuously improves its employee benefits system to foster a positive organizational atmosphere,attract and retain talent, and enhance employee well-being. The company offers a comprehensive range ofbenefits, including statutory benefits, inclusive benefits, position-based benefits, and incentive-basedbenefits. These include social insurance and housing fund contributions, household registration and housingsupport, employee training and development, and mentorship programs, helping employees addressconcerns such as home ownership and personal development.The company has established a long-term incentive system to attract, motivate, and retain key technicalpersonnel. This system encourages employee engagement and creativity, enhances team cohesion andHIUV's core competitiveness, and supports the company's long-term, sustainable, and healthy development.Employee Equity IncentiveSince 2021, HIUV has implemented three consecutive phases of itsEmployee Stock Ownership Plan (ESOP) over three years, transferring a totalof 26.359 million shares to 199 incentive recipients. In 2024, the companycompleted the unlocking and distribution of shares that had reachedmaturity under these plans.Additionally, in 2024, HIUV launched a new Equity Incentive Plan, granting

2.41 million stock options to 28 incentive recipients. These options will bedistributed over four years, contingent on performance evaluations.

Employee DormitoriesWe consistently practice a "people-oriented" approach with a focus onhuman care, continuously honoring our commitment to employee welfare.The company provides well-equipped employee dormitories at all of itsplant locations, ensuring that accommodation needs are met. Thisinitiative enhances employees' sense of belonging and satisfaction,contributing to an improved quality of life for our workforce.

Rich Cultural Life

69 70

4.4SocialResponsibility

HIUV takes on a strong sense of mission and responsibility. While generating profitsand fulfilling legal obligations to shareholders and employees, the company also bearsresponsibility toward consumers, communities, and the environment. HIUV views profitnot as the sole objective but emphasizes the value of people in the production process.The company is committed to making positive contributions to the environment,consumers, and society, prioritizing corporate social responsibility and contributing tothe healthy development of society.

HIUV Scholarship

In 2024, the HIUV Scholarship, donated to the School of Polymer Materials at Shanghai Jiao Tong University, continued to beawarded. The annual prize amounts to 120,000 RMB, encouraging outstanding students to focus on technological innovationand contribute to the development of polymer technology.

Establishment of Running, Table Tennis, and Badminton Clubs

In 2024, the company established running, table tennis, and badmintonclubs, organizing a variety of activities and competitions. Eachproduction base actively hosted half-marathons and various othercompetitive events, creating exciting and vibrant activities that enrichedemployees' lives.

4.5RuralRevitalization

In line with the United Nations SDGs' goals of No Poverty and Zero Hunger, as wellas China's "14th Five-Year Plan" which highlights the goal of comprehensivepoverty alleviation, HIUV actively responds to policies related to rural revitalization.The company focuses on participating in the photovoltaic rural rooftop povertyalleviation project. HIUV provides cost-effective adhesive film products tocomponent factories undertaking the photovoltaic rooftop projects, ensuring thequality and electricity generation efficiency of rural photovoltaic rooftops, thuscontributing to the success of the poverty alleviation initiative.

AnnexGRI Index

Instruction: HIUV reported the information referenced in thisGRI content index in accordance with the GRI standards fromJanuary 1, 2024, to December 31, 2024.GRI 1 used: GRI 1: Foundation 2021.

Disclosure Topic/Disclosure Item

Disclosure Item Title

Page

GRI 2: General Disclosures 2021

P1-2

Organization and Reporting Practices

2-1

Organizational details

P5-8

2-2

Entities included in the organization’ssustainability reporting

P1-2

2-3

Reporting period, frequency andcontact point

P1-2

2-4

Restatements of information

P1-2

2-5

External assurance

Not Applicable

Activities and Workers2-6

Activities, value chain and other businessrelationships

P11-18

2-7

Employees

P59-69

2-8

Workers who are not employees

P51-58

71 72

Disclosure Topic/Disclosure Item

Disclosure Item Title

Page

GRI 2: General Disclosures 2021Governance

2-9

Governance structure and composition

P12，19-20

2-10

Nomination and selection of the highestgovernance body

P12，19-20

2-11

Chair of the highest governance body

P12，19-20

2-12

Role of the highest governance body in overseeingthe management of impacts

P12，19-20

2-13

Delegation of responsibility for managingimpacts

P12，19-20

2-14

Role of the highest governance body in sustainabilityreporting

P12-18

2-15

Conflicts of interest

P19-20

2-16

Communication of critical concerns

P9-18

2-17

Collective knowledge of the highest governancebody

P9-18

2-18

Evaluation of the performance of the highestgovernance body

P9-18

2-19

Remuneration policies

P19-20

2-20

Process to determine remuneration

P19-20

Strategy, Policies, and Practices

2-22

Statement on sustainable development strategy

P11-13

2-23

Policy commitments

P11-13

2-24

Embedding policy commitments

P11-13

2-26

Mechanisms for seeking advice and raisingconcerns

P19-20

2-27

Compliance with laws and regulations

P11-13

2-28

Membership associations

P7-8

2-29

Approach to stakeholder engagement

P13-18

2-30

Collective bargaining agreements

P66

Disclosure Topic/Disclosure Item

Disclosure Item Title

Page

GRI 3: Material Topics 2021

3-1

Process to determine material topics

P17-18

3-2

List of material topics

P17-18

3-3

Management of material topics

P17-18

EconomyGRI 201：Economic Performance

201-2

Financial implications and other risks and opportunities dueto climate change

P37-39

201-3

Defined benefit plan obligations and other retirement plans

P66-69

GRI 203： Indirect Economic Impacts

203-1

Infrastructure investments and services supported

P42,70

203-2

Infrastructure investments and services supported

P31-32

GRI 204：Procurement Practices

3-3

Management of material topics

P51-58

GRI 205：Anti-corruption

3-3

Management of material topics

P2

205-1

Operations assessed for risks related to corruption

P22-23

205-2

Communication and training about anti-corruption policiesand procedures

P22-23

205-3

Confirmed incidents of corruption and actions taken

P22-23

GRI 206：Anti-competitive Behavior

3-3

Management of material topics

P22-23

206-1

Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

P22-23

73 74

Disclosure Topic/Disclosure Item

Disclosure Item Title

Page

Environment

GRI 301：Materials

3-3

Management of material topics

P49-50

301-1

Materials used by weight or volume

Not involved

301-2

Recycled input materials used

P49-50

301-3

Reclaimed products and their packaging materials

P49-50

GRI 302：Energy

3-3

Management of material topics

P39-42

302-1

Energy consumption within the organization

P39-42

302-3

Energy intensity

P39-42

302-4

Reduction of energy consumption

P39-42

302-5

Reductions in energy requirements of products andservices

P39-42

GRI 303：Water and Effluents

3-3

Management of material topics

P43-44

303-1

Interactions with water as a shared resource

P43-44

303-2

Management of water discharge-related impacts

P43-44

303-3

Water withdrawal

P43-44

303-4

Water discharge

P43-44

303-5

Water consumption

P43-44

GRI 304：Biodiversity

3-3

Management of material topics

P50

304-1

Operational sites owned, leased, managed in, or adjacentto, protected areas and areas of high biodiversity valueoutside protected areas

P50

304-2

Significant impacts of activities, products and services onbiodiversity

P50

304-3

Habitats protected or restored

P50

Disclosure Topic/Disclosure Item

Disclosure Item Title

Page

GRI 305：Emissions

3-3

Management of material topics

P39-42

305-1

Direct (Scope 1) GHG emissions

P39-42

305-2

Energy indirect (Scope 2) GHG emissions

P39-42

305-5

Reduction of GHG emissions

P39-42

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and othersignificant air emissions

P39-42

GRI 306：Effluents and Waste

3-3

Management of material topics

P47-48

306-1

Waste generation and significant waste-related impacts

P47

306-2

Management of significant waste-related impacts

P48

GRI 308：Supplier Environmental Assessment

3-3

Management of material topics

P51-58

308-1

New suppliers that were screened using environmental criteria

P51-58

308-2

Negative environmental impacts in the supply chain andactions taken

P51-58

Society

GRI 401：Employment

3-3

Management of material topics

P59-62

401-1

New employee hires and employee turnover

P61-62

401-2

Benefits provided to full-time employees that are notprovided to temporary or part-time employees

P69

401-3

Parental leave

P69

GRI 402：Labor/Management Relations

3-3

Management of material topics

P59-60

75 76

Disclosure Topic/Disclosure Item

Disclosure Item Title

Page

GRI 403：Occupational Health and Safety

3-3

Management of material topics

P67-68

403-1

Occupational health and safety management system

P67-68

403-2

Hazard identification, risk assessment, and incidentinvestigation

P67-68

403-3

Occupational health services

P67-68

403-4

Worker participation, consultation, and communication onoccupational health and safety

P67-68

403-5

Worker training on occupational health and safety

P67-68

403-6

Promotion of worker health

P67-68

403-7

Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships

P67-68

403-8

Workers covered by an occupational health and safetymanagement system

P67-68

403-9

Work-related injuries

P67-68

403-10

Work-related ill health

P67-68

GRI 404：Training and Education

3-3

Management of material topics

P60-65

404-1

Average hours of training per year per employee

P63

404-2

Programs for upgrading employee skills and transitionassistance programs

P60-65

404-3

Percentage of employees receiving regular performanceand career development reviews

P60-65

GRI 405：Diversity and Equal Opportunity

3-3

Management of material topics

P62

405-1

Diversity of governance bodies and employees

P62

405-2

Ratio of basic salary and remuneration of women to men

P62

GRI 406：Non-discrimination

3-3

Management of material topics

P62

406-1

Incidents of discrimination and corrective actions taken

Not involved

Disclosure Topic/Disclosure Item

Disclosure Item Title

Page

GRI 407： Freedom of Association and Collective Bargaining

3-3

Management of material topics

P66

407-1

Operations and suppliers in which the right to freedom ofassociation and collective bargaining may be at risk

P56

GRI 408：Child Labor

3-3

Management of material topics

P59-60

408-1

Operations and suppliers at significant risk for incidents ofchild labor

P59-60

GRI 409：Forced or Compulsory Labor

3-3

Management of material topics

P59-60

409-1

Operations and suppliers at significant risk for incidents offorced or compulsory labor

P59-60

GRI 413：Local Communities

3-3

Management of material topics

P70

413-1

Operations with local community engagement, impactassessments, and development programs

P70

GRI 414：Supplier Social Assessment

3-3

Management of material topics

P51-56

414-1

New suppliers that were screened using social criteria

P55

414-2

New suppliers that were screened using social criteria

P51-56

GRI 416：Customer Health and Safety

3-3

Management of material topics

P32

416-1

Assessment of the health and safety impacts of product andservice categories

P32

416-2

Incidents of non-compliance concerning the health andsafety impacts of products and services

P32

GRI 418：Customer Privacy

3-3

Management of material topics

P24,34

418-1

Substantiated complaints concerning breaches of customerprivacy and losses of customer data

P24