Sichuan Changhong Electric Co., Ltd. (hereinafter referred to as “Sichuan Changhong” or “the Company”)has prepared this report under the principle of openness and transparency. It aims to display the actualperformance fully performance, risks and opportunities of Sichuan Changhong and its subsidiaries (collectivelyreferred to as “the Group”) in social responsibility and sustainable development to shareholders, potentialinvestors, customers, employees, public welfare organizations, media, governments and other sectors ofsociety. This report is collected and collated by the ESG Management Office of the Company. It details theprogress and results of the Group's ESG work in 2024 and ensures that all sectors of society can objectivelyand comprehensively understand the actual actions of the Company in environmental, social and governance (ESG).
Introduction
This ESG report covers the period from January 1 to December 31, 2024, with parts covering longer periodsdepending on circumstances. Unless otherwise stated, this report covers Sichuan Changhong and itssubsidiaries.?Scope
This report is primarily prepared with reference to: the “No.14 Guidelines for Self-regulation of ListedCompanies of Shanghai Stock Exchange — Sustainable Development Report (Trial)”; “No.4 Guidelines forSelf-regulation of Listed Companies of Shanghai Stock Exchange — Sustainability Reporting Preparation”;the “Reference Indicator System for ESG Report of Listed Companies Controlled by Centrally-administratedSOEs” issued by the State-owned Assets Supervision and Administration Commission of the State Council; “GRIStandards 2021” issued by Global Reporting Initiative; the United Nations Sustainable Development Goals(SDGs); SDGs of the United Nations; and “ESG Reporting Guidelines” in Appendix 27 to the “Main BoardListing Rules” of the Stock Exchange of Hong Kong Limited.
Preparation?Basis
The text materials, data and cases cited in this report are all from the Company's internal statistical data,relevant documents and management systems, which are all original records of the actual operation ofthe Group. All information has been strictly reviewed within the Company and finally approved by themanagement, ESG Management Committee and Board of Directors. The Company regularly verifies theeffectiveness of the data collection process and data management system to ensure the accuracy andreliability of this report. The Company promises that there are no false records or misleading statements inthis report, and it is responsible for the authenticity, accuracy and completeness of the report contents.
?Content?Source?and?Reliability?Assurance
This report may contain forward-looking statements that are based on the Company's reasonable projectionsand expectations of possible or imminent business activities, events or developments. However, due tovarious uncontrollable factors such as market environment and policy changes, actual results may di?er fromthese forward-looking statements. As such, these statements should not be used as the primary basis forinvestments.
?Disclaimer
About?ESG?Report
Company, the Company, and Sichuan Changhong
The GroupGuangdong Changhong ElectronicsChanghong (Hong Kong)Changhong Air ConditionerSichuan Changhong Packing & PrintingSichuan Changhong NeoNet TechnologiesSichuan Changhong Mold and Plastic TechSichuan Changhong Precision Electronics Technology
Sichuan Changhong Precision Electronics
081 Electronics GroupSichuan Changhong Jijia Precision Industry
Sichuan Changhong BatteryZhongshan Changhong Electric
Changhong MeilingChanghong Huayi Compressor
Changhong JiahuaZhongke Meiling Cryogenics
Sichuan Hongxin SoftwareChanghong Minsheng Logistics
Changhong Smart DisplaySichuan Changhong Real Estate
Sichuan Kuaiyidian
Sichuan Hongrui Electric
JiaxiperaJiangxi Meiling
Sichuan Changhong Electric Co., Ltd.
The Company and its subsidiariesGuangdong Changhong Electronics Co., Ltd.Changhong
(Hong Kong) Trading LimitedSichuan Changhong Air Conditioner Co., Ltd.Sichuan Changhong Packing & Printing Co., Ltd.Sichuan
Changhong NeoNet Technologies Co., Ltd.SichuanChanghong Mold and Plastic Tech Co., Ltd.SichuanChanghong Component Technology Co., Ltd.Sichuan Changhong Precision Electronics Technology Co., Ltd.
081 Electronics Group Co., Ltd.Sichuan Changhong Jijia Precision Industry Co., Ltd.
Sichuan Changhong Battery Co., Ltd.Zhongshan Changhong Electric Co., Ltd.
Changhong Meiling Co., Ltd.Changhong Huayi Compressor Co., Ltd.
Changhong Jiahua Holdings LimitedZhongke Meiling Cryogenics Co., Ltd.Sichuan Hongxin Software Co., Ltd.Sichuan Changhong Minsheng Logistics Co., Ltd.
Changhong Smart Display (China) Co., Ltd.Sichuan Changhong Real Estate Co., Ltd.Sichuan Kuaiyidian Electrical Service Chain Co., Ltd.
Sichuan Hongrui Electric Co., Ltd.
Jiaxipera Compressor Co., Ltd.Jiangxi Meiling Electric Appliance Co., Ltd.
This report is prepared in both Chinese and English languages and will be published in electronic form. Incase of any discrepancies between the two language versions, the Chinese version shall prevail. Investors andthe public can access and download the report from the o?cial website of Shanghai Stock Exchange andthe Company's official Website. If you have any questions, suggestions, or feedback regarding this report,please feel free to contact us via email at 600839@changhong.com, and we will reply to and deal with yourfeedback as soon as possible.
?Acquisition?Method
Short?Name?Description
Short?NameFull?Name
Sichuan Changhong Gerun Environmen-
tal Protection Technology Co., Ltd.Sichuan Changhong Gerun
Sichuan Changhong ESG Report
About ESG Report
In 2024, under the leadership of the new Board ofDirectors, Sichuan Changhong Electric Co., Ltd. remainedcommitted to the guiding principle of “Technology-powered Changhong to Serve China through IndustrialDevelopment.” The Company steadily advanced onthe new journey of fostering new quality productiveforces and promoting high-quality development,achieving solid operational performance. For the year,the Company recorded operating revenue of
CNY103.691 billion, representing ayear-on-year growth of 6.40%, and anet profit of CNY 1.805 billion, upapproximately0.4% year-on-year (data to be updatedupon the release of the annual report in mid-April). Onthe occasion of the release of the Sichuan ChanghongESG Report 2024, I would like to extend my sinceregratitude, on behalf of Sichuan Changhong ElectricCo., Ltd., to every partner who has stood with us alongthe way. This report not only documents company'ssolid progress in green transformation, innovation, andfulfillment of responsibilities, but also embodies oursolemn commitment to sustainable development.
Strengthening?Governance?as?the?Foundation?for?Steady,?Long-Term?ProgressIn
2024,
we
deepened
the
implementation
of
the
SOE
reform enhancement initiative, further improving thecorporate governance system and advancing governancemodernization. A three-tier management structure- “Headquarters–BU–FBU” - was established, anda scientific decision-making and efficient executionmechanism
was
put
in
place,
achieving
an
organic
unity
between
decision-making
transparency
and
governance
accountability.
Guided
by
the
“three
checklists”
-
compliance risk identification, key process control,and
critical
position
compliance
responsibilities
-
the
Company completed 112 system iterations and issued6 new systems throughout the year. Our audit teamconducted
2,110
comprehensive
audits
with
100%
coverage, generating 464 management improvementproposals and establishing a multidimensional riskcontrol
shield.
Notably,
in
the
global
capital
market
access evaluation, our company became the firstmanufacturing
enterprise
from
western
China
to
be
included
in
the
MSCI
Index,
marking
global
recognition
of
the
governance
model
adopted
by
China's
advanced
manufacturing enterprises.
Green?Transition,?Responsible?Commitment
In
2024,
in
response
to
the
national
dual
carbon
goals,
we
upheld
the
philosophy
of
green
development
and
delivered
solid
results:
overall
energy
consumption
intensity
dropped
by
0.09,
greenhouse
gas
emission
intensity declined by 7.94%, and water resourceconsumption intensity fell by 2.33%. From being recognizedas a “Provincial Environmental Protection IntegrityEnterprise” to being certified as a “National GreenFactory,” we have embedded green technologies intoevery procedure, with every kilowatt-hour and every gramof carbon carrying our promise to the planet. Movingforward, we will continue advancing all product linestoward top-tier energy e?ciency standards. This is the mostcompelling interpretation of “Green Changhong”—truesustainable development begins with design and ends withresponsibility.Innovation-Driven?Leadership?for?an?Intelligent?FutureIn 2024, we accelerated the development of new qualityproductive forces and embraced the AI+ initiative, seizingopportunities in the emerging AI sector. Through vividpractices and innovative achievements, we embodied thespirit of Changhong—”diligence, fearless, perseveranceand pursuit of excellence”.In the field of “AI + Products,” we have adhered to ourcore value of “customer-centricity” and adopted a dual-drive model of independent and collaborative innovation.Leveraging the Yunfan AI large model - Canghai IntelligentAgent and the vertical large model for white goods, weredefined human-machine interaction and advancedintelligent home ecosystems. A series of industry-firstAI appliances were launched, including the world's firstAI television, AI cloud-humidity-controlled embeddedrefrigerator, and AI precision-control sterilization &cleaningair conditioner, making Changhong AI appliances“understand you better than you do.” Sichuan Changhongcontinues to advance relentlessly from single-productinnovation to ecosystem innovation in smart homes that areincreasingly intelligent, integrated, and pre-installed.In the ?eld of “AI + Manufacturing,” we actively responded tothe national call for “large-scale equipment renewal” bysystematically carrying out intelligent upgrades and digitaltransformation. More than 100 key equipment renewalprojects were implemented with an investment exceedingCNY 600 million. The Changhong “5G + Industrial Internet”customized smart display factory was selected as one ofthe ?rst batch of national-level outstanding smart factories.Relying on our self-developed, first-in-Sichuan cross-industry and cross-domain industrial internet platform,we developed replicable solutions for over 60 scenariossuch as manufacturing execution and warehouse logistics,cumulatively serving nearly 3,000 SMEs.In the ?eld of “AI + Operations,” we actively deepened thefull-chain integration and innovation of AI with “R&D,
Message?from?the?Chairman
production, supply, sales, and service”, accelerated thedevelopment of informatized and intelligent management,and continuously improved operational e?ciency. In supplychain management, we built a smart supply chain platformto enhance the integrated management of suppliers andprocurement operations. In production management,intelligent material analysis enabled optimized allocationof production resources, resulting in a 145% increase incommercial inventory turnover and a signi?cant reductionin inventory costs. In quality management, the “Yunshu”industrial app was developed with the goal of achievingfull product lifecycle traceability, enabling services suchas accountability tracing for product quality, therebyeffectively safeguarding product quality and consumerrights.Cultivating?Responsibility?for?Symbiotic?and?Shared?Growth
We firmly believe that the value of a corporation lies inbreathing with the times and growing with society. Fromlighting the first classroom lamp in remote mountainousareas to delivering the warmth delivered by Chinese smartmanufacturing along the Belt and Road, Changhong hasalways embedded social responsibility into its DNA: CNY1 million in education funds has illuminated the path ofknowledge for students in underprivileged areas; purchasesof agricultural products exceeding CNY 7.9 million havesupported 5,583 families. Over 15,000 star-rated certifiedengineers providing 24/7 support have turned “ChanghongService” into a warm promise across China's 9.6 millionsquare kilometers. More than CNY 20 billion in exportrevenue has transformed the Belt and Road into notonly a channel for trade but also a pathway for shareddevelopment. We believe that the value of a corporationlies not only in generating profits but also in ensuringtechnological progress benefits the public and in usingbusiness as a force for good to nourish society.The scroll of 2025 is slowly unfolding. Facing an increasinglycomplex global economic landscape, our convictionremains unwavering. We will stay true to the developmentphilosophy that “lucid waters and lush mountainsare invaluable assets,” uphold both compliance andinnovation, strengthen modern corporate governance,fulfill our responsibilities as a state-owned enterprisethrough dedicated service to society, and continueadvancing sustainable development. Though the roadahead may be long, we know that perseverance will lead usto our destination. Every member of Changhong is movingforward with urgency and purpose—with a deep senseof responsibility to strengthen our enterprise and drivemeaningful progress. Together with our partners, we areready to stride boldly on the path toward original
innovation, equipment renewal, and consumptionupgrading—toward a future of shared brilliance and anew chapter in the era of intelligent manufacturing in China.
?Liu?JiangParty?Secretary?&?Chairman?Sichuan?Changhong?Electric?Co.,?Ltd.
As the highest decision-making body for ESGa?airs, the Board of Directors has set up the ESGManagement Committee to assist in relevantwork. The ESG Management Committee isresponsible for developing ESG strategies,ensuring alignment with the Company'sbusiness objectives, and continually improvingESG performance.The Company has set ESG strategic objectivesrelated to its business operations. The Boardof Directors has reviewed and discussed theestablishment and progress of the objectives,and all ESG works have achieved phasedprogress as planned.This report details the Company's achievementsin ESG, which were reviewed and approved bythe Board of Directors on
? 04/25,?2025.
Board?of?Directors?Statement
Sichuan Changhong ESG ReportMessage from the Chairman
approximately
approximatelyapproximately
Sichuan Changhong Electric Co., Ltd. was foundedin 1958. In 1988, it was restructured from the State-owned Chang hong Machinery Factory into a joint-stock company. It was o?cially listed on the ShanghaiStock Exchange in March 1994 (Sichuan Changhong,600839.SH). It has four listed subsidiaries, includingChanghong Meiling Co., Ltd. (000521.SZ), ChanghongHuayi Compressor Co., Ltd (000404.SZ), ChanghongJiahua Holdings Limited (03991.HK), and ZhongkeMeiling Cryogenics Co., Ltd. (835892.BJ), and onesubsidiary listed on the innovative layer of NEEQ:
Sichuan Changhong Minsheng Logistics Co., Ltd.(836237.NQ). After decades of development, fromthe initial establishment and the launch of the colorTV business, to the current diversified expansionrelated to information and electronics, the Grouphas evolved into a global comprehensive technologyenterprise group integrating businesses such as theR&D and manufacturing of smart home appliances,general equipment, and ICT comprehensive services.
Corporate?Pro?le
In June 2024in the "China's 500 Most ValuableBrands" list, with a brand value of
thranked
billion2,368.76
In December 2024it was included in the "World's500 Most In?uential Brands" listby the World Brand Lab
About?Sichuan?Changhong
Responding to the national call,Changhong seized the opportunityand entered the television ?eld1970s
1973Registered trademark "Changhong"1976Trial-produced the ?rst color TV
1988State-owned Changhong MachineryFactory initiated the establishmentof Sichuan Changhong
Became the color TV sales championfor the ?rst time
1990
1984
The ?rst automatic assembly linewas introduced from Panasonicin Japan, and the daily outputper single shift is units.
1,000
March?1994It is listed and traded on the ShanghaiStock Exchange.1992
The annual output of Changhong colorTV sets was the first in the domesticsame industry to exceedone millionunits.
Development?Journey
The Group adheres to the concept of "Technology Creates a Better Life", and carries forward the enterprisespirit of "diligence, fearless, perseverance and pursuit of excellence." We remain firmly committed to ourcore value of “customer-centricity,” honoring the principle of putting users ?rst. We build a team of honest,pragmatic, dedicated and responsible staff who strive for new progress and grow with the Group. We alsostrengthen our brand power, technology power, industrial power, product power, service power and marketpower, and promote the upgrading of manufacturing industry, transformation of service industry andinternational development, thus developing into a technological innovation enterprise with global in?uence.
Corporate?Culture
1995Won the title of "China'sLargest Color TV Base" and"King of Color TV"1996The Product Division ofChanghong Air Conditionerswas established.1997Changhong became the firstenterprise in China whoseTV production exceeded tenmillion units, with a marketshare of .
35%
Jointly contribute capitalto establish ChanghongChaohua (ChanghongJiaohua).
Acquire 081 ElectronicsGroup
Listed Zhongke MeilingCryogenics on BeijingStock Exchange
2004
2018
2022
2007Became the largestshareholder of Meiling Electric(now Changhong Meiling)
2020Listed Changhong Jiahuaon HKEX Main Board
2008Acquired Huayi Compressor(now Changhong Huayi Com-pressor)Acquired Sichuan ChanghongBattery
CNY
thranking
Sichuan Changhong ESG ReportAbout Sichuan Changhong
Governance?Structure
Sichuan Changhong ESG ReportAbout Sichuan Changhong
Corporate?Honors
National?Industrial?Design?Center(Ministry of Industry and Information Technology)National?Technological?Innovation?Demonstration?Enterprise(Ministry of Industry and Information
Technology)Nationally?Accredited?Enterprise?Technology?Center(National Development and ReformCommission and other ministries)
Intelligent?Manufacturing?Pilot?Demonstration?Project (Ministry of Industry and InformationTechnology)“Key?Technologies?and?Applications?of?Integrated?Light?Field?Display” awarded the “National?Technological?Invention?Award”by the CPC Central Committee and the State Council
Awarded the “National?May?1?Labor?Medal,”“National?Advanced?Unit?for?Factory?Affairs?
Openness?and?Democratic?Management,”“National?Model?Unit?for?Factory?Affairs?Openness?and?Democratic?Management,”“National?Ankang?Cup?Advanced?Unit,”?and?“Home?of?National?Model?Workers”Named one of the“Top?100?Electronic?Information?Enterprises?in?2024”by the China Federationof Electronics and Information IndustryNamed one of the“Top?100?Manufacturing?Enterprises?in?Sichuan”by the Sichuan EnterpriseConfederation and Sichuan Enterprise Directors AssociationNamed one of the“Top?100?Digital?Economy?Enterprises?in?Sichuan”by the Sichuan EnterpriseConfederation and Sichuan Enterprise Directors AssociationRanked 96th on CCTV's“Top?100?ESG?Pioneer?Listed?Companies?in?China”listRanked?45th on the“Top?100?ESG?Pioneers?of?State-Owned?Listed?Companies”list by the State-owned Assets Supervision and Administration Commission of the State CouncilAwarded the “Global?Product?Technology?Innovation?Award?–?Extraordinary?Audiovisual?Experiences?Gold?Award” by the Global Product Technology Innovation Award Organizing CommitteeChanghong's premium brand CHiQ received the“Smart?Home?Appliance?Brand?Award”Recognized as a “2024?National?Outstanding?Public?Procurement?Case” by the China Federationof Logistics and Purchasing Public Procurement BranchWon the?“AWE?2024?Best?Product?Award” by the Appliance & Electronics World Expo (AWE)Organizing CommitteeThe Yin Chaohui Master Skills Studio was approved as a “National-Level?Master?Skills?Studio”Selected as a“2024?Best?Practice?Case?for?Sustainable?Development?of?Listed?Companies”bythe China Association for Public CompaniesThe Company's Board of Directors was recognized as a“2024?Outstanding?Practice?Case?for?the?
Board?of?Directors?of?Public?Companies?in?2024”by the China Association for Public Companies
Operating?Performance?in?2024
Year
Operating?Revenue
YoY?ChangeYoY?ChangeNet?Pro?t?Attributable?to?Shareholders?of?the?Listed?Company2022
2023
2024
92.482
97.456
103.691
7.18%
5.38%
6.40%
0.468
0.688
0.704
64.39%
46.98%
2.30%
CNYCNY
CNY
CNY
Decreased by
Increased by
Increased by
Increased by
Increased by
Increased by
CNY
CNY
billionbillion
billion
billion
billion
billion
Sichuan Changhong ESG ReportAbout Sichuan Changhong
Corporate?Sustainable?Development?Information
The Group is ?rmly committed to pursuing a path of high-quality, sustainable development. In active responseto China's 14th Five-Year Plan and the strategic deployment requirement of “carbon peaking and carbonneutrality.” It has followed the path towards the comprehensive green transformation of economic andsocial development, with the synergized reduction of pollution and carbon emissions as a lever, and green,low-carbon, and efficient utilization of energy as the focus. It has adhered to scientific planning, gradualprogress, innovation-driven strategies, and digital empowerment, building low-carbon industrial parks,fueling intelligent and digital transformation, and exploring pathways for green, low-carbon transformation atthe park level, thereby laying a solid foundation for the Group's green future in intelligent manufacturing.
In response to global sustainable development trends, the Company has systematically built an integratedESG management system covering “strategy, governance, implementation, and disclosure”. Through top-level design, ESG principles are deeply embedded into corporate governance and the entire operationalprocess. The Company has established an ESG management organizational structure and designated theBoard of Directors as the highest authority responsible for ESG operations and information disclosure. Uponresolution of the Board of Directors, an ESG Management Committee was established, and the “DetailedImplementation Rules for ESG Management Committee under the Board of Directors” were approved.The ESG Management Committee, as a specialized body under the Board of Directors, is responsible forcoordinating ESG-related a?airs, including analyzing ESG trends, formulating ESG strategies and objectives,overseeing ESG implementation across the Company, and reviewing material ESG-related matters. AnESG Management Office has also been established to coordinate ESG-related affairs in alignment with thestrategies and management requirements of the ESG Management Committee. Its responsibilities includepreparing and publicly disclosing the Company's annual ESG report. Functional departments acrossthe Company's platforms—covering environmental management, social responsibility, and corporategovernance—have adopted a hierarchical responsibility system. Responsibilities are cascaded down throughall departments and levels, supported by a cross-departmental coordination mechanism, forming a three-tiergovernance structure of “decision-making, management, and execution”.The Company has established an ESG recognition mechanism. The ESG Management Office conductsannual evaluations based on the quality of reports submitted by units, implementation outcomes, indicatorachievements, and responsiveness to key issues, selecting the best and excellent units of the year. In parallel,exemplary cases are identi?ed based on national or industry-level honors and innovation achievements, andall awards are reviewed and approved by the ESG Management Committee. By setting models and promotingexperience, the Company strengthens its incentive mechanisms, continuously enhances ESG competitiveness,and lays a solid management foundation for sustainable development.
ESG?Management?System
Sichuan Changhong is ?rmly committed to pursuing a path of high-quality, sustainable development. The Company activelyresponds to China's strategic deployment requirement for “carbon peaking and carbon neutrality” and supports theUnited Nations Sustainable Development Goals (SDGs) through concrete actions. While pursuing economic bene?ts, theCompany integrates sustainable development into its corporate strategy, daily operations, and management practices. Itactively ful?lls its environmental, social, and corporate governance responsibilities, promoting harmony between enterpriseand society, with the goal of achieving long-term, high-quality sustainable development and becoming an industry-leadingsustainable enterprise.The Company has set clear sustainable development goals for 2030, striving to achieve internal carbon peaking before 2030and aiming to reach carbon neutrality by 2049. While addressing global challenges, the Group continues to enhance its ESGperformance, respond to stakeholder expectations, and effectively support the sustainable development of its businessoperations. Through outstanding ESG practices, the Company seeks to lead industry transformation and set a benchmarkfor environmental protection, social harmony, and corporate governance.The Company has followed the path towards the comprehensive green transformation of economic and socialdevelopment, with the synergized reduction of pollution and carbon emissions as a lever, and green, low-carbon, andefficient utilization of energy as the focus. It has adhered to scientific planning, gradual progress, innovation-drivenstrategies, and digital empowerment; it has built low-carbon industrial parks, aiming to achieve full rooftop photovoltaiccoverage in these parks by 2030; it has fueled intelligent and digital transformation, and explored pathways for green andlow-carbon transformation within industrial parks. These e?orts aim at consolidating a green future development path forthe Company's intelligent manufacturing.
Sustainable?Development?Strategy
ESG?Management?Level
ESG?Decision-Making?Level?
ESG Management
Committee
Board of Directors
implement-ation?level
implement-ation?level
ESG Management
O?ce
FunctionalDepartments and
Subsidiaries
Functional departments and subsidiaries cover the three major areasof environmental management, social responsibility, and corporategovernance. Responsibilities are to respond to topics including climatechange response, environmental compliance, energy use, innovation,supply chain security, quality management, customer service, anti-briberyand anti-corruption, employee management, and health and safety, andsuch responsibilities are cascaded through all levels and departments.
An ESG Management Office has also been established to coordinateESG-related affairs in alignment with the strategies and managementrequirements of the ESG Management Committee.Its responsibilities include preparing and publicly disclosing the Company'sannual ESG report.
The Board of Directors is the highest authority responsible for ESGoperations and information disclosure.Upon resolution of the Board of Directors, an ESG Management Committeewas established, and the “Detailed Implementation Rules for ESGManagement Committee under the Board of Directors” were approved.The ESG Management Committee, as a specialized body under the Boardof Directors.It is responsible for coordinating ESG-related affairs, including analyzingESG trends, formulating ESG strategies and objectives, overseeing ESGimplementation across the Company, and reviewing material ESG-related matters.
Sichuan Changhong ESG ReportAbout Sichuan Changhong
In accordance with the relevant requirements of the Shanghai Stock Exchange, the Company has carried out amaterial topic identi?cation process.
Double?Materiality?Analysis
?Topic?Materiality?Assessment?Process
?Sustainable?Development?Topic?Library
Sustainable?Development?Topic?Materiality?Assessment?Process?of?
Sichuan?Changhong?(2024)
Step 1: Background Research and
Business Analysis – Building theSustainable Development Topic Library
Step 3: Topic Materiality Matrix
Step 4: Topic Disclosure and Practice
Step 2:TopicIdenti?cationand Evaluation
By studying and analyzing the main Sustainable development re-porting standards and guidelines at home and abroad, and aligningthem with the Company's business structure, 27 potential materialtopics were identi?ed and compiled into a preliminary topic library(see below).2-1Impact MaterialityAssessment2-2Financial Materiali-
ty Assessment
The ESG Management Committee and stakeholders jointly assessedeach topic from the perspectives of potential impact and likelihood.More than 1,200 valid questionnaires were collected.The ESG Management Committee evaluated the ?nancial materiali-ty of each topic based on the likelihood and potential impact of asso-ciated risks and opportunities. Multiple departments participated inthe review and validation.Based on the evaluation data from Step 2, a 2024 materiality matrixwas constructed to determine the materiality of topics for the currentyear.Guided by the analysis results, the Company carried out targeted dis-closures and practices.
With reference to the “No.14 Guidelines for Self-regulation of Listed Companies of Shanghai Stock Exchange— Sustainable Development Report (Trial)”, and in consideration of the macro policy context of the regionswhere the Company operates, the characteristics of its industry, and its stage of development, the Companyanalyzed the relevant impacts, risks, and opportunities related to sustainable development and compiledsustainable development topic library as follows:
?Results?of?Double?Materiality?Analysis
S/NS/NS/NTopicTopicTopic
Sichuan Changhong, taking into account its industry and business operation characteristics, assessedwhether each topic in the sustainable development topic library is expected to have a material impact in theshort, medium, or long term on the Company's business model, business operations, development strategy,financial position, operating results, cash flow, financing methods, and costs (i.e., financial materiality), aswell as whether the Company's performance on each topic may signi?cantly a?ect the economy, society, orenvironment (i.e., impact materiality). Based on clearly de?ned ?nancial and impact materiality assessmentfactors, the Company conducted stakeholder surveys and consulted internal and external ESG experts toevaluate the likelihood and severity of potential impacts for each sustainable development topic. This resultedin materiality scores for both ?nancial and impact materiality, from which a double materiality matrix wasconstructed. There are 7 issues with a high level of ?nancial signi?cance and high impact signi?cance, 2 issueswith high ?nancial signi?cance but low impact signi?cance, 13 issues with low ?nancial signi?cance but highimpact signi?cance, and 5 issues with a low level of both ?nancial signi?cance and impact signi?cance.
Internal Control andComprehensive RiskManagementAnti-Monopoly andFair CompetitionEcosystem and Biodiver-sity Protection
Product and ServiceSafety & Quality
Pollutant emissions
Anti-Commercial Briberyand Anti-Corruption
Tax management
Due diligenceTransparentSupply Chain
Equal Treatmentof SMEsCorporateGovernance
Rural Revitalization
Green production
Responsible Marketingand Communication
Response to Cli-mate Change
Information Secu-rityEnergy UtilizationUser Privacy Protection
Water ResourceUtilization
Stakeholdercommunication
Environmental Compli-ance Management
Social Contribution
Innovation-DrivenDevelopment
Circular Economyand Recycling
EmployeeWaste disposal
Tech Ethics
Sichuan Changhong ESG ReportAbout Sichuan Changhong
Double Materiality Matrix
Topic Distribution
Topic
Topic?Materiality
Topics with HighFinancial and ImpactMateriality
Topics with HighFinancial but LowImpact Materiality
Topics with LowFinancial but HighImpact Materiality
Topics with LowFinancial and Impact
Materiality
1814
2220
Double Materiality MatrixFinancial?Materiality
Impact?Materiality
HighModerate
HighModerate
The Group has attached great importance to the expectations and demands of all stakeholders, activelyengaging in dialogue and cooperation with them. To facilitate e?ective communication with all parties, theGroup has made ongoing efforts to develop diverse communication channels and methods, enhance thequality of information disclosure, and promptly respond to the demands of stakeholders.
Stakeholders?Due?Diligence?Communication
Demands?and?ExpectationsStakeholderCommunication?and?ResponseGovernmentor SupervisoryAuthority
Shareholder/Investor
Employee
Customer
Supplier
Industry Associationor Partner
MediaPublic WelfareOrganizationor Community
Organization
Compliance Op-erationTax Payment Ac-cording to Law
SymposiumOn-site Interviewand Investigation
Work ReportAnti-corruptionPolicy Response
Regular Return VisitsDedication to PublicWelfare
School-Enterprise
Employment
Cooperation
CorporateGovernanceRisk Manage-ment
ExhibitionO?cial WebsiteTransparentProcurementHonest Cooper-ation
Product QualityAssuranceCustomer Rightsand Interests Pro-tection
Protection of Em-ployees' Rightsand InterestsEmployee Remu-neration and Ben-e?ts
Return onInvestmentInformation Dis-closure
Customer ReturnVisitsOnline CustomerService Hotline
Social Media
Platform
Customer Satisfac-
tion Survey
Industry ActivitiesCalls and e-mails
On-site
Investigation
Real-time Commu-
nication SoftwareWin-winCooperationProduct Respon-sibilityTechnicalExchangesScienti?c andTechnologicalDevelopment
Industry ProgressProductResponsibilityPollutionDischargeProduct Respon-sibility
Protection ofEmployees' Rightsand InterestsResponse to Cli-mate ChangeSocialParticipationPublic Welfare
EmploymentPromotion
Customer PrivacyProtectionProduct ServiceGuarantee
Employee Healthand SafetyEmployee Train-ing and Develop-ment
General Meeting ofShareholdersInvestor ExchangesOn-site Investigation
Call and Meeting
E-mail and Online
Interactive Plat-
form
On-site InterviewPress Conference
Social Media
Platform
Labor UnionDaily InterviewEmployee Sympo-sium
Occupational,
Health and Safety
Training
Employee Satis-
faction Survey
Product and ServiceSafety & QualityAnti-Commercial Briberyand Anti-Corruption EmployeeInnovation-Driven De-
velopment
Response to Climate
Change
Internal Control and Compre-
hensive Risk ManagementEcosystem and Biodiversity
ProtectionTech EthicsDue diligence
Anti-Monopoly and Fair
CompetitionGreen productionPollutant emissions
Waste disposalTax management
Rural RevitalizationSocial Contribution
Responsible Marketing
CommunicationInformation SecurityUser Privacy Protection
Water Resource Utili-
zation
Circular Economy and
RecyclingEqual Treatment of
SMEs
Stakeholder commu-
nication
Energy Utilization
Transparent Supply Chain
Corporate GovernanceEnvironmental Compliance
Management
Sichuan Changhong ESG ReportAbout Sichuan Changhong
2024?Sustainable?Development?Highlights
The Company has held
general meetings,
board meetings and7?supervisory board meetings.The Board of Directors consists of 9 directors, including 3 independent directors, accounting for?33.33% ofthe total.Independent directors conducted on - site investigations at Changhong Huayi, Zhongshan Changhong, JiangxiMeiling, Jiaxipera, and Chengdu home appliance stores, gaining in - depth understanding of the market sales,production, R & D, and operational management of the company and its subsidiaries.The Group adopted a“three?lines?of?defense”model to enhance risk prevention and control. Using the“three lists” approach as the benchmark, it promoted in-depth integration of operations and compliance.A total of
internal policies were revised and improved and?6new ones were issued across functionaldepartments.The Group continuously optimized its ISO 14001 Environmental Management System. As?the??rst?enter-
prise?in?Mianyang?to?be?certi?ed?under?this?system.?In the successive annual surveillance audits.certi?cation authorities have conducted a comprehensive evaluation and con?rmed the continued conformityand e?ectiveness of the system, resulting in the renewal of the certi?cation.No major environmental incidents or violations occurred within the Group. All pollutant discharges compliedwith applicable regulatory standards, and no penalties were imposed by environmental regulatory authori-ties.
Sichuan?Changhong?Mold?and?Plastic?Tech?received?the?National?Green?Factory?certi?cation,
while Sichuan Hongrui Electric, Sichuan Changhong Precision Electronics Technology, Sichuan ChanghongNeoNet Technologies, and Sichuan Changhong Battery were certi?ed as Provincial Green Factories.Changhong Air Conditioner has been recognized as a“Environmental?Protection?Integrity?Enterprise?in?Sichuan?Province”for ?ve consecutive years; Sichuan Changhong Jijia Precision Industry has receivedthe same title for seven consecutive years.
Through collective wage bargaining, the Group ensured reasonable income growth for employees, with an av-erage annual salary increase of 3.62% in 2024.Over the year, the Group extended care and support to employees and retirees on 47,000?occasions and pro-vided aid to 187 employees su?ering from critical illnesses, work-related injuries, or hospitalizations. Addi-tionally, more than?7,000?visits were made to model workers, craftsmen, and frontline sta? representatives.A total of 4,225 employees in hazardous positions received occupational health examinations, with a 100%coverage rate. Regular assessments of occupational disease hazards in workplaces were conducted , achiev-ing a 100%?compliance rate.Throughout the year, 136?comprehensive emergency drills, 286 specialized drills, and 302 on-site responsedrills were conducted, involving a total of 51,295 participants.The Group paid a total of approximately?over?2.3?billion?yuan in taxes and fees to tax authorities in accord-ance with the law.The Group includes 12 subsidiaries certi?ed as second-level and 5 as third-level in standardized safety produc-tion. Additionally,?20?subsidiaries are certi?ed under the ISO 45001 System.
R&D investment totaledCNY?2.601 billion, with1,322?new patents granted.
patents in the ?elds of intelligentmanufactur-ing and new materials were publicly listed on the National Intellectual Property Operation Platform.No major adverse events occurred related to the Group's products or services, and no product recalls were issued.The Group was jointly recognized as an“Excellent?Enterprise?in?Quality?Management?Team?Activities?in?Sichuan?Province” by the Sichuan Association for Quality and the Sichuan Provincial Federation of Trade Unions.The Group has established over?4,000?service outlets across China, with more than 15,000?star-rated certi?ed ser-vice engineers providing 24/7 customer support. User satisfaction exceeded 96%.Deepen rural revitalization e?orts. Donate1?million?yuan?of educational funds to designated poverty - alleviationareas with weak educational resources. Purchase over
7.9?million?yuan worth of agricultural and special products
from the designated poverty - alleviation areas. Through consumption - driven assistance,5,583?people in underde-
veloped areas have bene?ted.Continue to carry out the "Colorful Changhong" study - tour activity. Invest over
1.4?million?yuan
to organize252?teachers and students from the designated poverty - alleviation areas to go out for research - based learning andtraining.Actively responding to the Belt and Road Initiative, the Group achieved export revenues exceedingCNY?25?billion
in 2024.
Based on its Green Development Achievement Certi?cation, Changhong (Hong Kong) secured over?CNY?100?mil-
lion in green revolving credit through negotiations with the Hong Kong Branch of the Bank of East Asia.Overall energy consumption intensity decreased
0.09
year-on-year.Water resource consumption intensity declined by?2.33% year-on-year.
100%?of hazardous waste was handled by quali?ed external service providers.Greenhouse gas emissions intensity (per CNY 10,000 output value) decreased by
7.94%
compared to the previousyear.
The Company disclosed?80announcement texts and29?attachments, totaling
documents disclosed.The audit department completed 2,110?internal audit projects, achieving full audit coverage. provided 401 auditrecti?cation requests and 63?management suggestions.There were no acts of unfair competition or monopolistic practices. There were no major internal control de?cien-cies, nor any major non - compliance incidents.Governance?Information
Environmental?Information
Social?Information
Sichuan Changhong ESG ReportAbout Sichuan Changhong
Governance Enhancement toSolidify the Underpinning forDevelopment
Sichuan?Changhong?has?optimized?top-level?governance?design,?clarified?the?responsibilities?and?powers?of?each?governance?entity,?strengthened?internal?control?and?comprehensive?risk?management,?established?a?robust?defense?system,?and?strictly?complied?with?laws?and?regulations?to?foster?a?clean,?fair,?and?just?market?environment.?At?the?same?time,?the?Company?attaches?great?importance?to?investor?relations?management?by?building?diversified?communication?channels?to?enhance?investor?trust.?Moreover,?the?Company?consistently?adheres?to?transparent?information?disclosure,?delivering?corporate?information?to?the?market?in?a?timely,?accurate,?and?complete?manner,?thereby?shaping?an?open?and?transparent?corporate?image.
Achievement?of?objectives?in?20241–-10-Year?Objectives(2021–2030)Continuously improve the Company's govern-ance system and standardize the Company'soperations, ensuring that there are no signi?-cant governance de?ciencies and no major vi-olations of laws or regulations (based on theresults of the annual external audit evalua-tion).Actively promote the high-quality de-velopment of the listed company, ef-fectively safeguard the interests of theCompany and all shareholders, en-hance business performance, and re-ward shareholders through effectivemeans such as cash dividends.
Completed. No signi?cant gov-ernance de?ciencies or majorviolations of laws or regulations oc-curred during the year.
Completed. In the half-year of2024, the Company distribut-ed a cash dividend of CNY?0.05?per share (inclusive of tax) toall shareholders, totaling CNY?23,081.22in cash dividends (in-
clusive of tax).
Respond to the United Nations Sustainable Development Goals (SDGs)
The Company strictly operates in accordance with the “Company Law of the People's Republic of China”,the “Securities Law of the People's Republic of China”, the “Code of Corporate Governance for ListedCompanies”, “Guidelines on the Articles of Association of Listed Companies”, “Rules Governing theListing of Stocks on Shanghai Stock Exchange”, as well as other relevant laws, regulations, and regulatoryrequirements. A governance structure of "Three Committees and One Management Layer" consisting ofthe General Meeting of Shareholders, the Board of Directors, the Board of Supervisors, and the OperationManagement has been established. Through core management systems such as the Articles of Association,Internal Authorization Manual, and special rules of procedure, the responsibilities and boundaries at all levelsare clearly de?ned, forming a mutually constrained operational mechanism for decision-making, execution,and supervision.To strengthen the e?ectiveness of professional governance, the Board of Directors has established ?ve specialcommittees: the Strategy Committee, the Audit Committee, the Nomination Committee, the Remunerationand Appraisal Committee, and the ESG Management Committee. Each specialized committee performsits respective duties to enhance both internal and external checks and balances. A dedicated meetingmechanism for independent directors has also been established to promote scienti?c and re?ned governancedecision-making, safeguard the legitimate rights and interests of the Company, shareholders, and creditors,regulate the Company's organization and behavior, and form a compliant, e?cient, and sustainable model ofgovernance for a listed company.
Improve?the?Corporate?Governance?Mechanism
?General?Meeting?of?Shareholders
Sichuan Changhong ESG Report
Governance Upgrade to Strengthen the Foundation for Development
Key?IndicatorsUnit202220232024Total number of meetingsExtraordinary general meetings
TimeTimeItem
The General Meeting of Shareholders is the highest authority of the Company. The Company operates instrict accordance with laws and regulations, as well as relevant provisions and requirements of the “Articlesof Association”, “Rules of Procedure for the General Meeting of Shareholders”, and other applicablesystems. Proposals, procedures, and voting at the General Meeting of Shareholders are conducted strictly inaccordance with relevant regulations. When reviewing proposals related to connected transactions, interestedshareholders abstain from voting to ensure fairness and reasonableness of the connected transactions. Afterthe meeting, resolutions of the General Meeting of Shareholders are disclosed in a timely manner.During the reporting period, the Company held 2 general meetings of shareholders in total and reviewed 13proposals. The convening and voting procedures of all the general meetings of shareholders of the Companywere legal and valid, and the on-site meetings were witnessed by lawyers on site. In addition, the Companyalso provided shareholders with a safe, cost-e?ective, and convenient online voting method to shareholdersto protect the legitimate rights and interests of minority investors.
?General?Meeting?of?Shareholders
The Board of Directors is responsible to the General Meeting of Shareholders, implements the resolutionsof the General Meeting of Shareholders, and exercises the decision-making power on major mattersof the Company. Members of the Board of Directors possess expertise across various fields includingmanagement, business, technology, and finance. Each special committee under the Board of Directorsperforms its respective duties and carries out work in accordance with relevant systems. Among them, theAudit Committee, Nomination Committee, and Remuneration and Appraisal Committee are all chaired byindependent directors. Mr. Wang Xin, the convener of the Audit Committee, has a professional background in?nance.The Company's Board of Directors currently has 3 independent directors. In accordance with laws, regulations,and the Articles of Association, independent directors stay well-informed about the Company's operations,financial status, major projects, and topics of the Board of Directors on their daily work. They contributetheir professional expertise and rich experience to support the functioning of the Board of Directors and thedevelopment of the Company's business, safeguarding the interests of the Company and all shareholders,with particular attention to protecting the legitimate rights and interests of minority shareholders.In 2024,independent directors conducted on - site investigations at Changhong Huayi, Zhongshan Changhong, JiangxiMeiling, Jiaxipera, and Chengdu home appliance stores. They also held discussion and communicationsessions with relevant responsible persons, gaining an in - depth understanding of the market sales,production, R & D, and operational management of the company and its subsidiaries. Each independentdirector spent more than 15 days on - site for work.
?Board?of?Directors
During the reporting period, the Board of Directors held 18 meetings, reviewed 67 proposals, and convened 4dedicated meetings for independent directors. All meetings were convened in strict accordance with relevantlaws and regulations, and all resolutions were legal and valid.Meetings of special committees under the Board of Directors were held as follows: the Audit Committee held6 meetings, the Remuneration and Appraisal Committee held 3 meetings, the Strategy Committee held 1meeting, and the ESG Management Committee held 3 meetings.
Board membersIncluding: female directorsNon-independent directorsIndependent directorBoard meetingsBoard resolutions adoptedAverage attendance
PersonPersonPersonPersonTimeItem
%
NameGenderType?of?Director
Diversity of the Board of Directors
Age
Education?Background
ChairmanDirectorDirectorDirector
Master's degreeBachelor's degree
Master's degreeBachelor's degreeBachelor's degree
MaleMaleMaleMaleMaleMaleMaleMaleMale
Liu JiangHeng Guoyu
Yang JinHou ZongtaiDuan Enchuan
He Long
Qu Qing
Wang XinYan Jinjiang
DirectorIndependent directorIndependent directorIndependent director
Doctoral degreeDoctoral degreeDoctoral degreeDoctoral degree
?Board?of?Supervisors?The Board of Supervisors, as the dedicated supervisory body of the Company, consists of 5 members,including 2 employee representatives, elected democratically by the Congress of Workers and Staff, and 3shareholder representatives. The Board of Supervisors appoints 1 chairman. During the reporting period, theBoard of Supervisors held 7 meetings and reviewed a total of 26 proposals.
Proposals adopted through de-
liberation
Vice chairman/General
manager
Key?IndicatorsUnit202220232024
Sichuan Changhong ESG Report
Governance Upgrade to Strengthen the Foundation for Development
Executive?RemunerationThe Company has formulated and implemented remuneration-related regulations, including the Rules ofProcedure for the “Remuneration and Appraisal Committee of the Board of Directors” and the “ExecutiveRemuneration and Appraisal Management Plan”, which clarify the remuneration allocation plans andperformance evaluation mechanisms for members of the executive management. These mechanismsfully leverage the incentive lever mechanism of remuneration distribution, motivating the enthusiasm andcreativity of the executive management. The Remuneration and Appraisal Committee reviews executiveremuneration based on clear decision-making criteria and procedures to ensure that remuneration decisionsare transparent and fair.The Company adopts a performance-oriented approach and sets remuneration levels with reference to theremuneration standards in the home appliance industry, reasonably determining each executive's annualincome based on their job responsibilities and speci?c duties. The Company implements an annual salarysystem for senior executives, with performance evaluations conducted based on annual performancecontracts. The Company encourages its senior executives to increase their total income through outstandingannual performance, which aligns with the Company's incremental performance growth. In accordance withregulatory requirements, the Company discloses overall remuneration information in its annual report tosafeguard the public's right to know.
Supervisory board membersIncluding: female supervisorsSupervisory board meetingsAverage attendance
PersonPersonTimeItem%
1（3）
Internal?Control?and?Comprehensive?Risk?ManagementThe Company comprehensively strengthens compliance management, reinforces internal control, andcontinuously enhances its risk response capabilities. It has established a modern enterprise management andcontrol system that integrates compliance, risk control, and internal control. Through the implementationof the "three lines of defense" model, the Group continuously improves the execution of risk identi?cation,assessment, and response, thereby raising the level of lawful and compliant operations.
Focusing on enforcing accountability at all levels, theCompany further improved the compliance and riskcontrol organizational structure of the listed company.In 2024, the Company established a Compliance and RiskControl Committee to further strengthen the complianceand risk control system. The effectiveness of the ChiefCompliance Officer was enhanced, and all subsidiarieswere required to appoint a Chief Compliance O?cer. Eachunit appointed compliance and risk control administrators,selected from personnel with strong compliance awarenessand familiarity with operations, in order to extend thecompliance structure to deeper levels and ensure thoroughimplementation. This ensured that the "institution,responsibilities, and personnel" are three in place.
The Company continues to deepen the construction of an internal control system oriented toward compliancegovernance and risk mitigation, improves internal control policies, standardizes their implementation,optimizes the internal control environment, and strengthens supervision and inspection of internal control.These efforts effectively prevent various risks and promote the Company's sustained, healthy, and stabledevelopment.The Company conducts annual self-assessments of its internal control system and engages a third-partyaccounting ?rm to audit the e?ectiveness of internal control over ?nancial reporting. In 2024, the Companyidenti?ed no material or signi?cant de?ciencies in internal control over ?nancial reporting, nor any materialde?ciencies in internal control over non-?nancial reporting. For details, please refer to the “2024 InternalControl Evaluation Report” and the “2024 Internal Control Audit Report” disclosed by the Company onApril 26, 2025, on the o?cial website of the Shanghai Stock Exchange.
Internal?Control
In 2024, the Company carried out a special campaign themed "Compliance Management Enhancement Year"and remained committed to integrating compliance and risk control management into its production andbusiness activities. During this period, major risks were e?ectively controlled and addressed, and no majorviolations of laws or regulations occurred.
Compliance?and?Risk?Control
Key?IndicatorsUnit2022
2023?(December?31)
2024
Supervisory boardresolutions adopted
Board?of?Directors?
Compliance and
Risk ControlCommittee
Compliance
& RiskManagement
O?cers
Managers
ChiefComplianceO?cer
Sichuan Changhong ESG Report
Governance Upgrade to Strengthen the Foundation for Development
A comprehensive set of internal regulations has beenestablished across all areas of business management and iscontinuously revised and improved in response to changes inlaws, regulations, and regulatory policies. In 2024, a total of112 rules and regulations were revised and 6 new ones wereissued by various functional departments of the Company.The Company strengthened management coverage based onprofessional domain regulations, accelerated the formulationof systems for previously uncovered areas, emerging industries,and new business models, and enhanced the establishment,modification, and abolition of regulations in line with actualbusiness operations. For key areas and high-risk businesses,the Company further developed clear, specific, and effectivebusiness management systems and procedures by integratingcorrective actions identi?ed through disciplinary inspections,audits, and special rectification activities, thereby improvingstandardized and re?ned management capabilities.
Focusing on systematic review, the Company furtherimproved its regulatory system. In 2024a total of rules and regulationswere revised and new oneswere issued by various functionaldepartments of the Company.
?Five?major?working?mechanisms?
Focusing on strengthening risk prevention, the Company further streamlined its operationalmechanisms.The Company continuously improved mechanisms for compliance review, risk screening, violation reporting,issue rectification, and evaluation reporting, thereby achieving closed-loop risk management. In 2024, theCompany adopted a “three-list” approach to promote deep integration between business and compliance.Each unit regularly conducted risk screening and compiled a “Compliance Risk Identification List”;strengthened compliance control at key stages and compiled a “Key Process Control List”; reinforcedcompliance responsibilities in critical areas by compiling a “Key Position Compliance Responsibility List.”Through the aforesaid lists, the Company enhanced daily communication and coordination with regulatorybodies and listed company associations, strictly ful?lling its information disclosure obligations.
The Company reinforced a long-term mechanism of “rectification through case analysis.” Each unitfaced issues directly, thoroughly analyzed root causes, drew inferences from individual cases, clarifiedresponsibilities for recti?cation, and re?ned work tasks to e?ectively resolve problems and strengthen processcontrol. The Company leveraged the synergy of its supervisory system to conduct in-depth, penetratinginspections in key areas such as “Three Major Matters and One Utilization,” bidding and procurement, assetmanagement, information disclosure, and contract management. Problems identi?ed or exposed during dailybusiness operations were subject to supervised recti?cation.
Focusing on targeted supervision, the Company further deepened oversight in key areas.
The Company has established a clearly tiered legal affairs management system that enables hierarchical,refined, and in-depth management of legal matters. The General Counsel of the Company oversees themanagement of legal a?airs and fully participates in the deliberation of major decision-making matters. TheCompany has established a Legal A?airs Management Department, formed a professional team of in-housecounsel, and made full use of external legal resources to provide comprehensive legal support for all businesssegments of the Company. The Company has developed a relatively complete legal affairs managementsystem. Core policies such as the “Legal Affairs Management System”, and “Contract ManagementMeasures” clearly de?ne the responsibilities for managing legal a?airs and the mechanisms for respondingto legal risks, thereby safeguarding business operations.The Company has comprehensively advanced the informatization of contract management by developing aprofessional contract management system that enables re?ned management throughout the entire contractlifecycle—from drafting and signing to execution and archiving—e?ectively reducing contract-related risks.The Company has incorporated the Articles of Association, core management systems, and major decision-making matters into the scope of legal review, and established a re-review mechanism for signi?cant contractsof subsidiaries to further strengthen the defense line against contract risks. By conducting legal knowledgetraining and special inspections, the Company supports business units in promptly identifying and addressinglegal issues in daily operations, thereby forming an interconnected, coordinated legal affairs managementsystem.
Legal?A?airs?Management
ComplianceReviewsEvaluationReports
ProblemRecti?cation
ReportingViolations
RiskAssessment
Sichuan Changhong ESG Report
Governance Upgrade to Strengthen the Foundation for Development
Internal?AuditThe Group has systematically improved its internal audit system by aligning with corporate governance,annual operating policies, and target tasks. In 2024, key policies such as the “Administrative Measures forEconomic Responsibility Audit”, the “Administrative Measures for Audit of Comparative ProcurementPricing”, and the “Internal Audit System for Import and Export Business” were revised to clarify theboundaries of authority and responsibility in audit supervision. In addition, the “Internal Audit Recti?cationManagement System” was implemented to establish a closed-loop mechanism of “issue identification –recti?cation implementation – e?ectiveness evaluation,” thereby enhancing governance e?ectiveness. At thestrategic level, with a focus on "compliance + innovation," the Group concentrates on its core responsibilitiesand business, supervises key areas such as compliance management and risk prevention and control, ensuresthe authenticity of ?nancial information and the security of assets, and contributes to the modernization ofgovernance capabilities.Through multi-dimensional supervision and targeted measures, audit e?ectiveness has been fully translatedinto business value. During execution, comprehensive supervision is conducted across all dimensions,including corporate culture, professional ethics, and business processes. Violations are strictly investigated,reinforcing the deterrent effect of anti-corruption. In the areas of supply chain and project construction,targeted actions such as identifying problems in the procurement process and urging for rectification,tracking the process of comparing prices for procurement, reviewing and reducing the amount of engineeringsettlement have directly achieved cost reduction and e?ciency improvement. In terms of target management,the baseline is set as full coverage of risk warnings to ensure that business operations are lawful andcompliant, and that ?nancial data is accurate and complete. At the same time, the closed-loop recti?cationprocess improves internal control efficiency and systematically resolves major operational risk hazards,supporting the e?ective implementation of the Company's high-quality development strategy.The Group's internal audit department advanced informatization. During the reporting period, the Companyintegrated an intelligent risk early warning system with the Company's SAP and credit systems to enablereal-time monitoring of procurement and sales data, thereby realizing comprehensive supervision over keybusiness risks. In 2024, a total of 2,110 audit projects were completed, achieving full internal audit coverage.Additionally, 401 audit recommendations and 63 audit management proposals were provided.
a total of audit projects were completed, achieving full internal audit coverage.Additionally, audit recommendations and audit management proposals wereprovided.
2,110
In 2024
Anti-Commercial?Bribery?and?Anti-Corruption
The Group continuously improve its integrity risk prevention and control system, closely integrating integrityrisk prevention and control with the improvement of corporate governance structures and the Company'senhancement of production and operational performance. A Discipline Inspection and Supervision Departmenthas been established at the headquarters, and secondary control matrices have been set up across businessplatforms and clusters. A dual-layer governance structure of “headquarters-led control + business clustercoordination” has been implemented to e?ectively prevent incidents of commercial bribery and corruption.
Sichuan Changhong strictly complies with the laws and regulations of all regions where it operates, bothdomestically and internationally. The Company has established a series of policies, including the “ImplementationMeasures for Accountability of Irregular Business Operations and Investments”, “Several Provisions on Integrityof Leaders at All Levels”, the “Measures for the Administration of Complaint Reporting”, and the “Guidelinesfor the Management System of Integrity Risk Prevention”. These provide detailed ethical standards and guidingprinciples for the Group's operations, both domestically and internationally. The Company explicitly requiresadherence to the principles of integrity and fairness in all business transactions and ?rmly opposes any conductthat disrupts fair market competition.
Risks
Governance
Risks,?Impacts?and?Opportunities
Unfair com-petitioncaused bycommercialbriberyDecline inmarket sharedue to repu-tation dam-age
Property loss-es caused bycommercialbribery andcorruption
Reve-nue (de-creased)Assets (de-creased)
ShorttermMediumterm
ShorttermMediumtermMediumtermLongterm
Reve-nue (de-creased)Revenue(long-termdecrease)Assets(brand val-ue depreci-ation)
High
High
High
Improve bidding & tendering and procurement systems,strictly regulate relevant conduct, and enhance the integ-rity of commercial practices.Improve the supervision system, ensure accessible re-porting channels, and expand the scope of supervision.And establish a blacklist system.Proactively establish an anti-bribery compliance systemand strengthen compliance reviews throughout businessprocesses.
Strengthen the building of integrity risk prevention andcontrol system, clarify the risk control responsibilities ofeach unit, and enhance integrity awareness and risk con-trol capabilities.Carry out various forms of warning education and pro-mote its normalization to create a strong psychological de-terrent against violators of disciplines and laws.Enhance supervision over key areas such as projectconstruction, bidding and tendering, and personnelselection.Maintain a high-pressure stance against misconduct andcorruption, and strictly investigate commercial briberyand other corrupt acts.
Description
Financial?Impact
Impact?Duration
Impact?
Level
Mitigation?Measures
Diversify routine supervision and public exposure of casesto e?ectively guide and reinforce positive narratives.Respond promptly to negative public opinion and activelyrestore brand image.
Risks/Oppor-tunities
Sichuan Changhong ESG Report
Governance Upgrade to Strengthen the Foundation for Development
the discipline inspection and supervisiondepartment has set up a reporting email
address
【chjw@changhong.com】【0816-2418450】
the discipline inspection and supervisiondepartment has set up a reporting hotline
The Group has smoothed out its supervision network by setting up 97 reporting mailboxes and 51reporting hotlines within the Group, thus unblocking the channels for supervision and reporting.Multi-Dimensional?Supervision?Network
?Management?MeasuresThe Group, with reference to relevant government guidelines at all levels and industry best practices, formulatedkey anti-corruption work priorities aligned with the Company's annual objectives. The Responsibility Letter onClean Governance was revised and signed by all departments and subsidiaries, continuously promoting the regularsupervision of anti-corruption e?orts in a more speci?c, targeted, and institutionalized manner.The Group has identified significant corruption-related risks, focusing on key departments such as group control,business management, investment and mergers & acquisitions, financial management, procurement and salesmanagement, project construction, ?xed asset investment, risk management, and audit recti?cation. A risk preventionchecklist for key positions in these departments has been established to implement effective corruption riskgovernance in these key positions.The Group has launched targeted recti?cation e?orts, focusing on ?ve integrity-related actions. Notably, the specialrecti?cation of commission and intermediary fees in overseas projects achieved remarkable results. To enhance riskprevention, secondary units conducted comprehensive assessments of integrity risks at key positions, covering majordepartments and personnel. A dynamic assessment mechanism was established, under which quarterly evaluationswere carried out for the secretaries of the discipline inspection commissions and discipline inspection o?cers of 25directly a?liated Party organizations, thereby reinforcing supervisory responsibilities.
Oppor-tunities
Medium
Adhere to a problem-oriented approach, strictly enforcesupervision and discipline, and reinforce accountabilityand risk awareness among leadership.Maintain simultaneous investigation and recti?cation ofcorruption with a high-pressure stance, strengtheningintegrity risk supervision in key areas and criticalprocesses.Note: 1. According to the Company's sustainable development strategy, the impact duration is divided into threecategories: short term, medium term, and long term. Short term refers to the period within one year (inclusive)after the end of the reporting period; medium term refers to one to ?ve years (inclusive) after the reporting period;and long term refers to more than ?ve years after the reporting period.
2. The impact level is categorized into three levels: low, medium, and high. A "low impact level" refers to ①
currently neutral with potential future impact, or ② currently or potentially having an adverse e?ect. A "mediumimpact level" refers to currently having an adverse effect with possible negative consequences in the future. A"high impact level" refers to ① currently having a negative e?ect with the likelihood of strong future adverseimpact, or ② a high probability of strong adverse impact either now or in the future.
In 2024, the Group implemented full-coverage integrity education. Four integrity warning ?lms were screenedacross the Group (including two internally produced), two integrity education conferences were held, andcompany executives participated in three additional education sessions organized by higher-level authorities.Layered and categorized integrity education was carried out, including integrity training for over 850 newemployees, over 70 newly appointed cadres, and more than 200 staff in the procurement system. “ThreeDisclosure” integrity talks were introduced for newly appointed middle-level managers, and integrity-themed lectures were delivered at subsidiaries.
Full-Cycle?Integrity?Education
Strict?Disciplinary?Enforcement
cases were filed, individuals were disciplined, individuals were subject toorganizational action, and received admonitory talks.In cooperation with higher-level supervisory commissions, individuals were investigated,and were transferred to judicial authorities. These actions improved the quality and e?ciencyof supervision and formed a closed-loop management system of “investigation, recti?cation, andgovernance.”
In 2024
The Group will continue to monitor the latest domestic and international laws and policies related to anti-commercial bribery and anti-corruption, and will promptly adjust internal policies to align with leadinginternational and domestic standards. Integrity education will be incorporated into regular training programssuch as employee onboarding and promotions to ensure that employees at all stages of career developmentreceive systematic instruction. Targeted integrity training will be provided for key positions such asprocurement, sales, and ?nance. Risk points will be analyzed based on job characteristics and correspondingprevention measures will be formulated to enhance employees' risk awareness in key positions. The Companystrives to prevent any incidents of commercial bribery or corruption that could significantly impact itsoperations in future years, thereby safeguarding the legitimate rights and interests of all stakeholders.
Enhance cor-porate imageto attract pre-mium clientsand partnersImprove man-agement ef-?ciency andfoster a cleanpolitical envi-ronment
MediumtermLongterm
Longterm
Revenue(increased)Cash ?ow(improved)Expens-es (de-creased)Assets(loss de-creased)
High
Increase publicity of corporate integrity culture toshowcase a positive corporate image.Strengthen routine supervision and special inspectionsto e?ectively prevent commercial bribery and corruption.
Sichuan Changhong ESG ReportGovernance Upgrade to Strengthen the Foundation for Development
The Company attaches great importance to maintaining investor relations. In terms of governance structure,an Investor Relations Management Department has been established for investor relations managementunder the O?ce of the Board of Directors, led by the Secretary of the Board of Directors and assisted by theSecurities A?airs Representative. Dedicated personnel are assigned to handle day-to-day investor relationsmatters. The Company has formulated and re?ned policies such as the “Management Measures for InvestorRelations”, “Internal Reporting System for Major Information”, “Registration Management Systemfor Insiders”, and “Investor Interaction Working System” to standardize processes including materialinformation reporting and insider registration. Through the “Related-Party Transaction ManagementSystem”, the Company ensures fair pricing, compliance in approval procedures, and timely informationdisclosure, treating all investors equally.
Investor?Relation?Management
The Group strictly complies with the “Anti-monopoly Law of the People's Republic of China”, the “Anti-UnfairCompetition Law of the People's Republic of China”, and other relevant laws and regulations. A fair competitionmanagement system covering the entire business chain has been established. A fair human resources mechanismhas been improved, and the “Guidelines for the Competition and Selection of Cadres” and the “Measuresfor the Administration of Recruitment” ensure that recruitment and appointment processes are open andtransparent, eliminating identity-based discrimination. Transparent control over the supply chain has beenimplemented through systems such as the “Supplier Agreement Management Measures” and the “ProcurementContract and Order Management Standards”, which clarify the boundaries of rights and responsibilities betweenpurchasers and suppliers. The Group maintains zero tolerance for violations. According to the “Supplier BlacklistManagement Measures”, suppliers in breach of contract are subject to a three-year exclusion penalty. In 2024, atotal of 69 suppliers were added to the blacklist.In 2024, our company did not engage in any unfair competition, had no major internal controlde?ciencies, and did not encounter any major non - compliance situations.
Anti-Monopoly?and?Fair?Competition
The Company has established a three-dimensional communication network of “onlinecommunication + offline interaction + customized activities” to maintain close engagementwith investors and potential investors, and to respond fully to their concerns. Therefore, it hasestablished the in-depth interaction with investors.
The Company answered over investor hotline callsResponded to inquiries via the SSE e-interaction platformOver the year, the Company held three performance brie?ngs and published ?ve investor activitylogs, thereby establishing deep interaction with investors.Senior executives participated in a total of investor roadshow events and engaged with morethan professional investors and shareholders.
Achieving a% response rate and ensuring prompt investor relations responses
In 2024
Shareholder?RightsIn 2024, the Company successfully held two “Shareholder Appreciation and Feedback Events,” establishinga diversified shareholder return mechanism that enhanced investors' understanding and experience ofthe Company's products. On the occasion of its 30th anniversary of listing, the Company organized anappreciation campaign for over 400,000 shareholders under the principles of “genuine products, fair pricing,sincere attitude, and wholehearted service.” These events provided shareholders with exclusive, high-qualityproducts and services, and were widely recognized by shareholders.
Investor?Relations?Management?and?Shareholder?Rights
Sichuan Changhong ESG ReportGovernance Upgrade to Strengthen the Foundation for Development
the Company will have achievedeight?consecutive?years of cashdividend distributionwith cumulative cash dividendstotaling approximately?CNY?1172.53million
Based on the actual situation of its businessdevelopment, the Company actively implemented aprudent profit distribution policy under the premiseof ensuring normal operations and sustainabledevelopment, providing shareholders with stableand long-term returns and sharing developmentachievements with minority shareholders. In April 2024,the Company formulated and disclosed the “SichuanChanghong Shareholder Return Plan”, effectivelyprotecting the legitimate rights and interests of publicinvestors. In September of this year, the Companycompleted the implementation of the equity distributionfor the half year of 2024, distributing a cash dividend ofCNY 0.05 per share (tax inclusive) to all shareholders,totaling CNY 230,812,200 (tax inclusive).
In September of this year, the company carried out the implementation work of the semi - annualrights and interests distribution in 2024, distributing a total cash dividend of million yuan.23,081.22
If the 2024 annual dividend plan isimplemented
Year
Amount?of?Cash?Dividends?per?
10?Shares
(Including?tax,?CNY)
Dividend?Amount(Including?tax,?CNY)201720182019202020212022
0.40
0.12
0.22
0.10
0.10
0.20
184,649,768.8855,394,930.66101,557,372.8846,162,442.2246,162,442.2292,324,884.44
Creditors'Equity
The Company has no bad credit record in bank credit,no?outstanding?bonds?in?the?bond?market?in?2024, and no default in the bond market.
20232024 (half year) 2025 plan
0.40
0.50
Total
Year
Amount?of?Cash?Dividends?per?
10?Shares(Including?tax,?CNY)
Dividend?Amount
(Including?tax,?CNY)
Sichuan Changhong ESG Report
Governance Upgrade to Strengthen the Foundation for Development
0.50
1172,526,032.38
184,649,768.88230,812,211.10230,812,211.10
Information?Disclosure?Transparency
The Company strictly complies with relevant laws and regulations of the securities market and has establisheda sound information disclosure system, which is rigorously implemented. This includes policies such asthe “Information Disclosure Management System”, the “Management System for Postponement andExemption of Information Disclosure”, and the “Internal Reporting System for Major Information”. Thesesystems ensure that all disclosures are timely, accurate, complete, and in full compliance with disclosurerequirements for listed companies. Regarding financial disclosure, the Company prepares its financialstatements in accordance with the Accounting Standards for Business Enterprises. Annual reports are issuedby independent audit institutions to ensure the authenticity and reliability of financial reporting. For non-?nancial disclosures, the Company prepares its Sustainability Report (ESG) in accordance with the “No.14Guidelines for Self-regulation of Listed Companies of Shanghai Stock Exchange — Sustainable DevelopmentReport (Trial) issued by Shanghai Stock Exchange”, thereby practicing the concept of sustainabledevelopment and standardizing related disclosures.
A dedicated information disclosure management team under the Office of the Board of Directorsis responsible for daily disclosure activities. All disclosed information undergoes multi-layer cross-verification by relevant departments including finance, legal, and compliance, as well as review bycompany leadership. All disclosure content strictly follows the Company's internal approval proceduresto ensure accuracy, authenticity, and compliance. All disclosure documents are publicly released via theo?cial website of the Shanghai Stock Exchange and other authorized information disclosure platforms toensure openness and transparency.
The Company continuously improves its internalinformation disclosure policies, actively fulfills alldisclosure obligations, and strives to enhance thequality and transparency of its disclosures.Optimize the compilation and disclosure methods ofperiodic reports, expanding in terms of framework,content, and format. Present the development ofthe company's main business and its operatingconditions in a more concise, clear, and easilyunderstandable way.In addition, the Companyenhances the visibility and readability of its periodicreports through media coverage, analyst research,streaming video production, and official WeChataccount posts, providing multi-dimensionalinterpretations of the reports. The Company fullydiscloses key information of interest to investors,including major operating results, pro?t distributions,related party transactions, external insurance, andrisk alerts.
Pcs
150109
IndicatorsUnit202220232024
In 2024
the Company issued a total ofperiodic report
ad hoc announcements.
In the current year, the Company disclosed announcement texts (excluding the reportsummary)and attachments, totaling documents disclosed.
Disclosed announcementsand attachments
Sichuan Changhong ESG ReportGovernance Upgrade to Strengthen the Foundation for Development
Empowering GreenDevelopment, Leading aSustainable Future
“Lucid?waters?and?lush?mountains?are?invaluable?assets.”?Sichuan?Changhong?deeply?implements?the?concept?of?ecological?civilization,??rmly?adhering?to?the?path?of?ecological?priority?and?green?development,?and?regards?environmental?protection?as?the?strategic?cornerstone?of?its?sustainable?development.?The?Company?adheres?to?a?combination?of?source?prevention,?process?control,?and?end-of-pipe?treatment.?It?continuously?optimizes?its?industrial?and?energy?structures,?strengthens?the?R&D?and?application?of?environmental?protection?technologies,?improves?resource?utilization?e?ciency,?and?builds?a?green,?low-carbon,?circular?production?and?operation?system.?These?efforts?aim?to?enhance?environmental?performance,?reduce?environmental?risks,?and?contribute?to?building?a?Beautiful?China.
Based on 2021 as the baseline year, the Com-pany aims to reduce energy consump-tion intensity（genergy consumed perCNY10,000 of output value）, by 10% by2030.
As of 2024, energy consumption intensi-ty （genergy consumed per CNY10,000of output value）, decreased by 23.48%compared to 2021.Based on 2021 as the baseline year, theCompany aimed to reduce greenhousegas emission intensity（Greenhouse gasemissions per CNY10,000 of output val-ue）, by 10% by 2023.
As of 2024, greenhouse gas emissionintensity（Greenhouse gas emissionsper CNY10,000 of output value）,dropped by 27.1% compared to 2021.During the 14th Five-Year Plan period, theCompany set annual energy-saving tar-gets for core products: by 2025, the unitcomprehensive energy consumption ofChanghong TV products shall be ≤ 4.491tce/10,000 sets, and that of air condition-er products shall be ≤ 12.216 tce/10,000standard sets. The energy cost per unitof Changhong Meiling refrigerators andwashing machines decreased comparedto the previous year.
The unit energy consumption of TVproducts was 3.965 tce/10,000 sets,and that of air conditioners was 11.259tce/10,000 standard sets. The reductionin the energy cost per unit of Chang-hong Meiling refrigerators and washingmachines has achieved the target.
Achievement?of?objectives?in?20241–-10-Year?Objectives(2021–2030)
Respond to the United Nations Sustainable Development Goals (SDGs)
Green?Practices?Throughout?the?Product?LifecycleThe Group collaborates with partners across the industrial chain to build a green ecosystem and systematicallypromote low-carbon transformation across the entire value chain, including raw material procurement, productionand manufacturing, logistics and transportation, end-user consumption, and recycling. Through full-chain carbonreduction actions, such as environmental compliance management, green supply chain development, low-carbonproduction optimization, smart logistics upgrade, eco-friendly packaging iteration, and circular resource systembuilding, the Group has upgraded carbon e?ciency management across the full product lifecycle.
Environmental?Compliance?Management
The Company has established and continuously improved its environmental protection and management systembased on the ISO 14001 standard. The Company has formulated strict environmental management systems andperformance targets, and continuously identi?es, monitors, and manages environmental risks. The Company was the?rst enterprise in Mianyang to be certi?ed under the ISO 14001 Environmental Management System.The Company continuously optimizes its environmental governance structure. And has established a Safety andEnvironmental Protection Department, which is mainly responsible for environmental compliance management.At the executive level, a dedicated person is assigned to directly oversee the Safety and Environmental ProtectionDepartment, and all major matters related to safety and environmental protection are submitted to the executivemanagement for decision-making. The head of the Safety and Environmental Protection Department regularlyreports the performance of safety and environmental initiatives to the executive management and overseesimplementation. Under the Safety and Environmental Protection Department, an environmental management teamis set up for providing expert advice on environmental matters and promoting the implementation of the Company'senvironmental policies.
?Governance
Sichuan Changhong strictly abides by environmental protection laws and regulations, such as the “EnvironmentalProtection Law of the People's Republic of China”, the “Environmental Impact Assessment Law of the People'sRepublic of China”, the “Law of the People's Republic of China on the Prevention and Control of Water Pollution”and the “Law of the People's Republic of China on Prevention and Control of Atmospheric Pollution”. The Companyhas established a comprehensive environmental management system and implements scienti?c, standardized, andprocedural management of its environmental a?airs.
Risks,?Impacts?and?Opportunities
Risks
Oppor-tunities
Increasedconsump-tion of envi-ronmentalresourcesduring oper-ations
Market ex-pansiondriven byenhancedenviron-mentalprotectionreputation
Increasedcosts forpurchasingand upgrad-ing envi-ronmentalprotectionequipment
Risk of pen-alties due tonon-compli-ance
High costsof greentransforma-tion for rawmaterialsand energy
Cost (in-creased)
Cost (in-creased)
Cost (in-creased)
Reve-nue (in-creased)
Expend-iture (in-creased)
Shortterm
Shortterm
Shortterm
ShorttermMe-diumtermLongterm
Me-diumtermLongterm
Medium
Medium
Medium
High
Low
Establish a multi-tier compliance review mechanismand conduct strict self-inspection on key nodes such asproject approval, production, and product release.Partner with environmental experts for regularcompliance assessments and guidance on theCompany's environmental protection initiatives.
Collaborate with suppliers on R&D and procurement ofgreen materials and energy.Participate in green procurement alliances organiz-ed by Industry associations and conduct centralizedpurchasing to reduce costs.
Install energy monitoring devices for real-time trackingof energy consumption. Set resource consumptionquotas and conduct departmental performanceevaluations.Conduct R&D or adopt environmental protection tech-nologies including energy and water saving to reduceconsumption.
Develop a comprehensive green branding plan usingboth online and o?ine channels to publicize theenvironmental protection concepts and achievements.Participate in domestic and intemational environmentexhibitions to showcase green products and tech-nologies
Conduct comprehensive market research beforeprocurement, comparing performance and price ofdi?erent brands and models.Engage professional evaluators to assess expectedlifespan and maintenance costs.Seek government subsidies for environmentalequipment procurement.
Financial?
Impact
Impact?Duration
Impact?
Level
Mitigation?MeasuresDescription?of?Risk/OpportunityRisks/Oppor-tunities
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
Note: The de?nitions of impact duration and impact level in the environmental section of this report are asfollows:
1. According to the company's sustainable development strategy, the impact duration is divided into three
categories: short term, medium term, and long term. Short term refers to the period within one year (inclusive)after the end of the reporting period; medium term refers to one to ?ve years (inclusive) after the reportingperiod; and long term refers to more than ?ve years after the reporting period.
2. Impact level is categorized into three dimensions: low, medium, and high. A low impact level indicates no
impact or potential impact in the short, medium, and long term. A medium impact level indicates potentialimpact in the short term, high cost of use in the medium term, and very high cost in the long term. A highimpact level is de?ned as: ① possibly usable in the short term but at a high cost; scarce or extremely costlyin the medium term; and unavailable in the long term; or ② entirely unusable, prohibitively expensive, orinaccessible even in the short term.
Management?Measures
The Group places great emphasis on environmental risk management. In 2024, the Group revised theEnvironmental Risks and Opportunities Management Procedure to further improve the systems for identifying,assessing, controlling, and monitoring environmental risks and opportunities, ensuring the e?ective operationof the environmental management system and reducing environmental risks.
Environmental?Risk?Management?Mechanism
Each department analyzes macro-level and internal environmental factors, combined withstakeholder requirements, to identify respective risks and opportunities and complete thedepartmental Environmental Risks and Opportunities Identi?cation and Evaluation Form. The Safetyand Environmental Protection Department consolidates and analyzes such forms to establish thecompany-level Environmental Risks and Opportunities Identi?cation and Evaluation Form.
Risk?Identi?cation
Environmental risk management processOppor-tunities
Increasedadded valuegreen techinnovation
Access toenviron-mental sub-sidies andtax incen-tivesNew busi-ness in-comethroughexpansionof greenindustrychain coop-eration
Revenue (in-creased)Asset (tech-nology assetincreased)Expenditure(R&D invest-ment in-creased)Revenue(subsidy in-creased)Expendi-ture (tax de-creased)
Reve-nue (in-creased)
Me-diumtermLongterm
Medium
Medium
Medium
Establish a special fund for green tech R&D andencourage internal innovation.Carry out industry-university-research cooperationprojects with universities and research institutesto accelerate the transformation of technologicalachievements.Appoint dedicated personnel to collect and manageinformation on government subsidy and tax incentivepolicies on environmental protection.Prepare application materials in accordance withpolicy requirements to ensure timely and accuratesubmissions.
Proactively engage with upstream and downstreampartners to jointly develop green supply chain projects.Participate in green industry forums to identify potentialcollaboration opportunities.
ShorttermMe-diumtermLongterm
Me-diumtermLongterm
Establish environmental risk and opportunity assessment criteria. Each department assessessigni?cant risks and opportunities based on the established criteria and complete the departmentalList of Major Environmental Risks and Opportunities. The Safety and Environmental ProtectionDepartment summarizes and analyzes such lists, and compiles and ?nalizes the company-level List ofMajor Environmental Risks and Opportunities.
Risk?Assessment
Each department adopts appropriate response or mitigation measures—such as eliminating,avoiding, reducing, or accepting risks—for the material environmental risks and opportunitiesidenti?ed in the assessment. These actions aim to reduce or eliminate risks, capture opportunities,and improve overall environmental performance.
Risk?Control
Each department must conduct at least one annual review of major environmental risks andopportunities to verify effectiveness. Conduct regular monitoring of environmental factors topromptly re-identify and reassess relevant risks and opportunities.Risk?Review?and?Monitoring
Financial?Impact
Impact?Duration
Impact?
Level
Mitigation?MeasuresDescription?
of?Risk/OpportunityRisks/Oppor-tunities
Sichuan Changhong ESG Report
Empowering Green Development, Leading a Sustainable Future
The Group has adopted scientific and effective risk response measures, and has rigorously implementedmeasures such as environmental monitoring and emergency response actions to ensure the efficientoperation of environmental management.Environmental?Risk?Management?Measures
Environmental Emergency Management
In November 2024, Changhong AirConditioner conducted a simulationof a fire outbreak in a factory'senvironmental equipment fan. Upondiscovering the ?re, on-site employeesimmediately reported the incident andcarried out early-stage ?re?ghting andenvironmental emergency response.
In December 2024, Changhong AirConditioner simulated hot work nearthe perimeter fence of a tank area,which ignited surrounding vegetation.The Energy and Power Center andChanghong Air Conditioner jointlyconducted drills based on the “SpecialEmergency Response Plan for LevelIII Major Hazard Sources Accidents inthe R32 Storage Tank Area” and the“Special Emergency Response Planfor Hazardous Chemicals”.
The Group strictly follows the“National Environmental Emergency Response Plan”and other relevantregulations to develop environmental emergency response mechanisms, including the“Emergency ResponsePlan and Emergency System Management System”, the“Hazard Identification and Management System,and the“Dual Reporting”System for Major Hazards”. A corporate-level“Compliance Obligation Checklist”is compiled, with the Safety and Environmental Protection Department conducting regular inspections andoversight on other departments. The Company conducts annual environment-speci?c drills and summary tostrengthen its environmental safety defenses.During the reporting period, the Group conducted 103 environmental emergency drills,involving a total of 4,057 participants.
Environmental Risk MonitoringIn accordance with the “Pollution Control Procedure”, “Solid Waste Management Procedure”, “HazardousChemical Management Procedure”, and pollutant discharge permit requirements, and in consideration ofsurrounding environmental conditions and actual emissions, the Company has formulated a comprehensiveEnvironmental Monitoring Plan. In 2024, the Company achieved a 100% completion rate for environmentalmonitoring activities.Sichuan Changhong Mold and Plastic Tech: At the beginning of each year, an environmentalpollutant monitoring plan is developed, a third-party monitoring agency is commissioned forenvironmental pollutant monitoring. All test results confirmed that its pollutant dischargesmet regulatory standards. In 2024, self-monitoring completion and compliance rates bothreached?100%.Sichuan Changhong Jijia Precision Industry: The company formulated an annualenvironmental monitoring plan for pollutant emissions and compliance requirements,covering over70?monitoring items. Throughout the year, more than
environmental testswere conducted by third-party monitoring agencies. Test results con?rmed that all pollutantsmet discharge standards. In 2024, the self-monitoring completion rate and compliance rateboth reached100%.
Targets?and?ProgressIndicatorsTargets?for?2024
Progress?During?the?
Reporting?Period
Environmentalcompliance
Environmentalincidents
No major environmental incidentsAll pollutant discharges from emission-generating units of the Groupmeet standards; no environmental violationsNo penalties imposed by environmental regulatory authorities due toenvironmental incidents
CompletedCompletedCompleted
Changhong?Air?Conditioner?Responded?to?Emergency?Fire?Incident
Changhong?Air?Conditioner?Carried?out?the?Environmental?Emergency?Drill
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
Response?to?Climate?Change
In 2024, the Company established a ESG governance system led by the Board of Directors, and incorporatedclimate-related risks and opportunities into the responsibilities of relevant departments, thereby promotingthe formation of a company-wide basic climate governance system.
Governance
Risks,?Impacts?and?Opportunities
Board?of?Directors
ESG?Management?
Units
As the supreme governing body, it is responsible for approving climatechange-related strategies and policies, ensuring alignment with theCompany's long-term development goals, and appointing members of theESG Management Committee for supervision and management.
Assess the impact of risks and opportunities on the Company's business and?nancial performance. Benchmark against industry best practices and designclimate risk response measures based on the company's actual situation.Identify and conduct preliminary assessments of climate risks. Disclose?ndings on climate-related risks and opportunities.
The ESG Management Committee is responsible to the Board ofDirectors for monitoring ESG trends, climate change related policiesand ensuring that the Company's ESG strategy and plans are up-to-date.
Responsi-bilities
Responsi-bilities
Responsi-bilities
Sichuan Changhong actively implements its climate change response strategy. By referencing the guidelinesof the Shanghai Stock Exchange and the scenario analysis models of the IPCC, the Company assesses theimpact of climate-related risks and opportunities on its operations, ?nancial performance, and sustainabledevelopment, and continuously optimizes its climate risk management system.
Climate?Risk?and?Opportunity?Analysis?Mechanism
ESG?Management?Committee
Sichuan Changhong actively responds to China's “dual carbon” goals and has integrated responseto climate change into its ESG strategy. The Company adheres to the principles of energy conservation,environmental protection, and green, low-carbon development. It continuously carries out energy-savingtechnological upgrades in o?ce areas and actively promotes eco-friendly o?ce practices to reduce resourcewaste and improve resource and energy utilization efficiency. The Company also encourages departmentsand operational sites at all levels to embrace the concept of green development by implementing measuressuch as waste classi?cation and recycling, energy conservation, green commuting, and green dining, therebyadvancing low-carbon operations.
Scenarios
Intergovernmental?Panel?on?Climate?Change?(IPCC)Selection?of?Scenario?
Models
Scenario?Application
Low-emissionscenario:
Low-emissionscenario withstrict climatepolicy interven-tion
High-emissionscenario:
Business-as-usu-al high-emissionscenario withoutclimate policy in-tervention
Representative concen-tration pathway (RCP) –stringent path: RCP2.6Shared socioeconomicpathway (SSP) – sustain-able development path:
SSP1
Representative con-centration pathway(RCP) – high-emissionpath: RCP8.5Shared socioeconom-ic pathway (SSP) –high-emission path:
SSP5
This scenario combines a sustainable socioeco-nomic context with low radiative forcing climatetargets and is often described as a future pathwhere "green transformation and climate actionare closely aligned". In this scenario, transforma-tion risks are relatively high, while physical risksare relatively low. This scenario is designed to alignwith the long-term targets of the Paris Agreement(limiting global temperature rise to below 2°C, withe?orts to cap it at 1.5°C).
This scenario represents a high-emission futurewith greater development inequality and heavy re-liance on fossil fuels. In this scenario, physical risksare signi?cantly elevated while transformationrisks are relatively low. No climate change responsepolicies are introduced, leading to rising energy de-mand and sustained greenhouse gas emissions, re-sulting in continued global warming and increasedfrequency of extreme climate events.
Risk?and?opportunity?
evaluationScenario?and??nancial?impact?
analysisControl?and?
strategic?optimization
In alignment with the TCFD framework, the Company systematically identi?esclimate-related risks and opportunities by integrating industry trends, policydevelopments, and business-speci?c factors into its strategic analysis.The Company assesses the materiality of identified risks and opportunitiesbased on factors such as time horizon, likelihood of occurrence, and potentialimpact, and establishes a prioritization matrix.In collaboration with all business units, the Company evaluates the potentialimpacts of climate change on operations and financial affairs and conductsscenario analysis.For identified risks, the Company formulates prevention, mitigation, andrecovery measures. For identified opportunities, the Company optimizesbusiness strategies and matches appropriate resources to enhance theCompany's climate resilience.
Identi?cation?of?climate?risks?and?opportunities
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
Climate?Risk?and?Opportunity?Analysis?Results
Climate Change-Related Risks and Impacts (Climate Physical Risks)
Suddenearth-quakeevents
Pro-longedheat-wavesanddroughts
Suddenfloodevents
Carbonemis-sion re-quire-ments
Envi-ron-mentalstand-ards
Acuterisks
Policyandlegalrisks
Policyandlegalrisks
Repu-tationrisks
Tech-nol-ogyrisks
Acuterisks
Chron-ic risk
The Company's main pro-duction sites are locat-ed in Mianyang, Hefei,Jingdezhen, Zhongshan,and other regions, whichare prone to river ?ood-ing and waterlogging dur-ing the rainy season. Suchevents may lead to inun-dation of factories andhazardous chemicals, re-sulting in property dam-age.
Products exported over-seas by the Companymay face relevant policyrequirements and restric-tions such as carbon tar-i?s and carbon footprint.
To promote air pollutionprevention and control,Sichuan Province has is-sued the enterprise envi-ronmental performancegrading standards andimplemented di?eren-tiated control measuresbased on the level of en-terprise environmentalperformance.
The research and devel-opment of low-carbontechnologies and thetransformation there-to require substantial in-vestment of capital andtime, which may increasethe Company's operatingcosts and time costs.
The Company's progressin green development hasgarnered signi?cant exter-nal attention, with inclu-sion in multiple ESG indicesfor rating assessment. Theperformance in low-car-bon initiatives is increasing-ly becoming a critical factorfor investors when evaluat-ing investment value. Froma long-term perspective, in-adequate performance inlow-carbon initiatives maydampen client engagementand partnership momen-tum.
The company's headquar-ters is located in MianyangCity, in the northeast-ern part of Sichuan Prov-ince, China. It is at theintersection of the Long-menshan Seismic Zoneand the Songpan - Ping-wu Seismic Zone, near anarea with relatively fre-quent seismic activities.Earthquakes may resultin ruptures or leaks in en-ergy pipelines and storagetanks, breakage of powercables, and secondaryaccidents such as ?res,which could lead to pro-duction stoppages.
During the summer of2024 (June to August), theaverage temperature inSichuan Province was 1.2to 1.5°C higher than thehistorical average (basedon the 1991–2020 refer-ence period), with four re-gional heatwave eventsrecorded across the prov-ince. Prolonged heat anddrought conditions led topower rationing, poweroutages, and water sup-ply disruptions.
Power rationing, pow-er outages, and wa-ter supply disruptionsa?ected productionactivities. With the in-creasing frequency ofextreme heat events,employee produc-tivity will be signi?-cantly impacted, andtheir health and safe-ty will be placed un-der serious threat. Inresponse to the hightemperatures, theCompany increasedexpenditures onheat-related allow-ances, medical care,and other employeewelfare bene?ts.
These risks maycause prematurescrapping of exist-ing assets, increasedcosts due to equip-ment and facilitydamage, potentialfactory shutdowns,and decreased pro-duction output, ul-timately leading torevenue loss.
The continuous ad-vancement of the EUcarbon border adjust-ment mechanism andinternational emissionreduction e?orts haveincreased the operat-ing costs of enterprises'overseas businesses;competitiveness in ex-port markets has de-clined.If a company's rating islow, production involv-ing waste gas processeswill be restricted duringheavy pollution weath-er warnings, and thetransportation of mate-rials by vehicles will alsobe restricted, a?ectingproduction and sales,leading to reduced rev-enue and increasedtransportation costs.
With the rapid advance-ment of industrial tech-nological innovation,intensifying competi-tion, and increasing R&Dinvestments, the intro-duction of new technol-ogies may necessitatethe phase-out of olderequipment. This couldlead to the prematurescrapping of existing as-sets, failed investmentsin low-carbon technolo-gies, as well as challeng-es such as technologicalimmaturity and low mar-ket acceptance.
Heightened stakehold-er focus on corporateESG performance intro-duces material brandvalue risks, as failureto meet expectationscould trigger marketvaluation erosion.
There is a risk of fac-tory shutdowns,and decreased pro-duction output, ul-timately leading torevenue loss.
Shortterm
Me-diumterm
Longterm
Longterm
Longterm
Longterm
Longterm
Low
Medi-um
Medi-um
Medi-um
Medi-um
Medi-umLow
Formulate the “ComprehensiveEmergency Plan for Work Safety Ac-cidents” and the“Response Planfor Natural Disaster Accidents”,pay attention to the weather condi-tions at all times, organize employ-ees of the Company to carry outpreventive drills, and strengthenwork safety investigation and earlywarning.To respond to ?ooding events, pre-pare ?ood control and emergencyrescue materials, and ensure that?re?ghting and emergency rescuefacilities are complete.
Secure generator resources in ad-vance, build the necessary techni-cal capacity, and closely monitorweather forecasts to stay informedof extreme weather events. Dur-ing power rationing or outages,promptly deploy rented generatorsto ensure the production of urgentorders.Install essential water storage facil-ities to stockpile water in advanceand ensure production continuityduring droughts.Equip emergency response sup-plies and enhance training and drillsbased on the “Special EmergencyPlan for Natural Disasters of Chang-hong Air Conditioner”.Reduce outdoor operations duringextreme heat conditions.Stock up on heat-relief supplies andmedications.
Cost oflow-car-bontechnol-ogy re-searchand de-velop-mentandtransfor-mation
Stake-holdercon-cerns
Closely monitor changes in interna-tional and domestic environments,as well as carbon-related laws, reg-ulations, and policies. Timely calcu-late carbon emissions and evaluatecompliance costs.Expand the scope of product carbonfootprint certi?cation, focus onrelevant policy requirements ofcarbon tari?s, and timely evaluateexport costs and adjust businessplans.
Share R&D costs and risks by joint-ly developing low-carbon technolo-gies with partners.Closely monitor government policiesand actively pursue relevant fundingsupport and tax incentives tomitigate the cost of transformation.
The Company is committed toenhancing ESG disclosure trans-parency to elevate sustainable de-velopment governance to newheights.The Company will proactivelyengage with ESG rating agencies,regulatory bodies, investors andpotential investors to demonstrateits steadfast commitment toenvironmental, social andgovernance responsibilities.
According to the grading criteria,actively promote the improvementof environmental performance,seize the opportunities of greendevelopment, and achievea win-win situation betweenenvironmental protection andbusiness development.Utilize seismic early warning of theseismostation to plan productionand logistics in advance, and opti-mize factory site selection accord-ingly.Ensure seismic-resistant structuraldesign during factory construction.Develop earthquake evacuationroute maps and conduct emergen-cy drills.Store ?ammable, explosive, andhazardous materials in isolated andsecure areas.
Climate Change-Related Risks and Impacts (Climate Transition Risks)
risks
Category
Financial?
Impact
Impact?Duration
Impact?
Level
Mitigation?MeasuresOpportunity?Description,?Impact
risks
Categ
ory
Financial?
Impact
Impact?Duration
Impact?
Level
Mitigation?MeasuresOpportunity?Description,?Impact
Sichuan Changhong ESG Report
Empowering Green Development, Leading a Sustainable Future
The Group continues to promote the transformation towards green and low-carbon development, formulatesmanagement systems and plans for greenhouse gas emissions, adopts clean energy production, useshigh-efficiency equipment, promotes process improvements and energy-saving renovations, and activelyimplements the Company's ESG strategic goals and industry emission reduction requirements.
?Management?Measures
Promote the Use of Clean Energy
The Group actively expands its adoption of clean energy solutions by promoting the use of renewable energysources, including solar photovoltaic and wind power. This strategic shift reduces reliance on traditional fossilfuels while enhancing energy utilization e?ciency across production and operational processes.Changhong?Jiaxipera?Compressor:?In 2024, Jiaxipera invested approximately CNY?3.08?million to
build a distributed photovoltaic power station on its factory rooftops. With an annual average powergeneration of 1,660,000?kWh, the project achieves self-consumption with surplus electricity fed intothe grid, and a carbon reduction of 1,168?tonnes?of CO
equivalent per year.
Guangdong?Changhong?Electronics: In cooperation with China Southern Power Grid EnergyE?ciency and Clean Energy Co., Ltd., a photovoltaic power station was built in its industrial park. Atotal of 11,838,800?kWh of electricity was generated in 2024, reducing CO
emissions by 7,573.33?tonsthroughout the year. Among this, Guangdong Changhong Electronics purchased and used 5,122,900?
kWh of photovoltaic electricity, achieving a CO
reduction of 3,267.91?tons. In addition, the companyphased out old, high-energy-consuming air conditioners and replaced 33 units with energy-e?cientmodels, further reducing energy waste.Changhong?Huayi?Compressor:?The company continues to increase the utilization of renewableenergy. In 2024, the company consumed a total of 6,753,600?kWh of renewable energy, about 4.57?percent of total electricity use, which is equivalent to reducing 3,917?tons?of CO
emissions. Low-carbon Technology Innovation and Process ImprovementThe Group enhances the energy efficiency in the production process through technological innovation andprocess optimization, reduces greenhouse gas emissions, and promotes the development of green products tominimize the carbon footprint throughout the product life cycle.Changhong?Meiling: In 2024, Changhong Meiling proposed 98 carbon reduction projects, covering
key areas such as manufacturing, product design, supply chain, and office operations. As of now,
87 projects have been implemented, including 41 projects in the manufacturing sector focused ontechnological upgrades, process optimization, and e?cient resource utilization, e?ectively reducingcarbon emission intensity and supporting the company's green transformation.Changhong?Air?Conditioner:?Since 2019, Changhong Air Conditioner has fully adopted eco-friendlyR32 refrigerant, replacing traditional HCFCs, significantly reducing the Global Warming Potential(GWP) of its products. In 2024, the company completed the upgrading of vacuum degreasingfurnaces, reducing natural gas consumption and lowering CO
emissions, while recovering volatileoils to achieve e?cient resource recycling. Throughout the year, greenhouse gas emission intensitydecreased by 15.38%?year-on-year, with a total CO
reduction of 2,583.05?tons.
Oppor-tunities
Categ
ory
Financial?
Impact
Impact?Duration
Impact?
Level
Mitigation?MeasuresOpportunity?Description,?Impact
Climate Change-Related Opportunities and Impacts (Climate Change Opportunities)
Green,low-car-bon,andener-gy-sav-ingprod-ucts
Moreclimate-resilientsupplychain
Shiftingconsum-er pref-erences
Properutiliza-tion ofpolicyresourc-es
Prod-uctsandser-vices
Prod-uctsandser-vices
Re-sour-ce ef-ficien-cy
Mar-ket
The home appliance sec-tor is experiencing a trans-formative wave of productinnovation, fueled by risingenvironmental awarenessamong consumers. Thisshift is accelerating demandfor energy-e?cient greenproducts that can reducewaste, lower costs and car-bon emissions. While greenproduct development re-quires upfront investment,the bene?ts brought in thelong term far exceed thecosts.
When the new energy-sav-ing and emission reductionpolicies are issued, enter-prises that implement themare given additional incen-tives and reward support.The company can thus en-joy the policy bene?ts.
The Company has strength-ened its resilience and cli-mate-adaptive supply chaincapabilities under extremeweather or disaster condi-tions, e?ectively mitigatingthe operational impacts ofnatural disasters.
Amid the growing adop-tion of green and low-car-bon concepts and evolvingdemands for green transfor-mation, customers and thepublic are demonstrating sus-tained increases in demandfor environmentally friendlyproducts and services. Thisshift necessitates greateremphasis on environmentalprotection and sustainabledevelopment in the Compa-ny's future product planning,potentially catalyzing break-throughs in new product cat-egories.
Innovation in technolo-gy and products drivesthe iteration of the Com-pany's home applianceo?erings, contributing toincreased market shareand enhancing the repu-tation of corporate socialresponsibility.
Compliance with energyconservation and emis-sion reduction policiesmay qualify the Com-pany for correspondingpolicy support and ?-nancial incentives.
Assessing suppliers' sus-tainable developmentperformance and environ-mental impact drives thedevelopment of a sustaina-ble supply chain and greenlogistics ecosystem. Thisapproach not only strength-ens partner collaborationbut also enhances marketshare and revenue growthin the medium-to-long term.Concurrently, by optimizingresource e?ciency, improv-ing packaging utilizationrates, and reducing ener-gy/material costs, the Com-pany achieves signi?cantoperational expenditure re-ductions.Successful developmentof new product categorieswill enable the Companyto establish new partner-ships and strengthen exist-ing collaborations, therebyexpanding market share
Medi-um
Medi-um
Medi-um
Low
By actively implementing green andlow-carbon initiatives, includingdeveloping clean energy, promot-ing low-carbon technologies, andadopting new energy equipment,the Company continues to increaseits investment in green develop-ment through funding and resourceallocation.Through measures such as resourcerecycling and regeneration, theCompany has e?ectively enhancedthe carbon e?ciency of its products.
Identify and respond to govern-ment supportive policies and greenprojects.
Actively explore and apply newtechnologies and processes toimprove resource e?ciency andreduce energy costs.Identify and engage in emergingmarkets.Adapt to market demand, seize theconsumption upgrade opportunityof the home appliance industry, andformulate marketing strategies.
Me-diumtermLongterm
Me-diumtermLongterm
Me-diumtermLongterm
Shortterm
Persist in building an intelligentlow - carbon logistics park, andwork together with upstream anddownstream supply chain partnersto achieve carbon reduction anddecarbonization goals.Responds to natural disasters by es-tablishing a climate early warningsystem and emergency plan, buildsa climate-resilient system in col-laboration with supply chain part-ners, launches green packaging andeco-friendly transportation servic-es to meet consumer demand, andenhances the public awareness andpreference for low-carbon logisticsthrough publicity and education.
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
Explore the Market-Based Green Electricity TradingThe Company actively participates in market-based green electricity trading and environmental rightstransactions to drive low-carbon transformation. By procuring green power, renewable energy certificates(RECs), and engaging in carbon market trading, the Company not only advances its decarbonization e?ortsbut also promotes sustainable practices across the entire industrial chain.Changhong?Meiling:?In the reporting period, Changhong Meiling actively explored market-based green electricity transactions, purchasing aluminium power and obtaining 20,000+ greenpower certi?cates and consumed 38,921,200 kWh of green electricity to reduce carbon emissionsthrough market mechanisms.
Changhong?Air?Conditioner:?In response to the national electricity policy, Changhong AirConditioner actively participates in direct electricity procurement, with a proportion of 55% ofhydropower transactions in 2024, reducing corporate electricity carbon emissions.
Example of Green Power Certi?cate Transaction Voucher
?Objectives?and?Progress
?Objectives?and?Progress
Indicators
Indicators
Objectives
Objectives
Progress?in?Reporting?Period
Progress?in?Reporting?Period
Achievement?
Rate
Achievement?Rate
Greenhousegas emissionintensityEnergy con-sumption in-tensity
Energy con-sumption in-tensity
Taking 2021 as the base year, the Com-pany aims to reduce the greenhousegas emission intensity (greenhouse gasemissions per CNY 10,000 of output val-ue) by 10% by 2030Taking 2021 as the base year, the Compa-ny aims to reduce the energy consump-tion intensity (energy consumption perCNY 10,000 of output value) by 10%overall by 2030.
By 2025, the comprehensive energyconsumption per unit of ChanghongTV products ≤ 4.491 tce/10,000 sets,and that of Changhong air conditioningproducts ≤ 12.216t tce/10,000 standardsets
Decreased by 27.1% com-pared to the base year
The comprehensive energyconsumption per unit of TVproducts is 3.965 tce/10,000sets, and that of air condi-tioning products is 11.259tce/10,000 standard sets
Decreased by 23.48% com-pared to the base year
Achieved ahead ofschedule
Achieved ahead ofschedule
Achieved ahead ofschedule
Direct greenhouse gasemissionsIndirect greenhouse gasemissions from purchased
energyTotal emissionGreenhouse gas emis-
sion intensity
33,292.22175,064.44208,356.66
43.77
33,649.31201,351.39235,000.70
43.21
43,190.73216,907.31260,098.03
39.77
tCO
etCO
etCO
et/CNY 10,000 of
output value
IndicatorsUnit202220232024
Note: 1. The Group has continuously expanded its statistical scope. The 2024 greenhouse gas emissionsdisclosure covers production facilities for TVs, refrigerators (freezers), air conditioners, washing machines,kitchen appliances, small household appliances, general equipment, and intermediate products, includingover 10 domestic manufacturing bases such as Mianyang, Zhongshan, Hefei, Jiaxing, Jingdezhen, andJingzhou, achieving full coverage of domestic production bases. The 2022 data statistical scope refers tothe "Sichuan Changhong ESG Report 2022", while the 2023 data statistical scope refers to the "SichuanChanghong ESG Report 2023".
2. Enterprises within Sichuan Province conduct calculations in accordance with the "Carbon Emission
Accounting Methodology" (Attachments 2-3) speci?ed in the "Sichuan Province Near-Zero Carbon EmissionPark Pilot Construction Work Plan" issued by the Sichuan Provincial Department of Ecology and Environmentand the Department of Economy and Information Technology on April 24, 2022 (Notice on Carrying out Near-Zero Carbon Emission Park Pilot Work). Enterprises in Guangdong Province, Anhui Province, and JiangxiProvince conduct calculations according to local emission accounting requirements.
3. Direct greenhouse gases refer to emissions generated directly from the Company's consumption of natural
gas, diesel, gasoline, etc.; indirect greenhouse gases from purchased energy refer to emissions resulting fromthe Company's consumption of purchased electricity and purchased steam.
4. Due to limitations in statistical methods, the data does not include greenhouse gas emissions from
employee commuting, leased assets, and raw materials.
Greenhouse Gas Emission Data for the Past Three Years
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
Green?Supply?ChainSichuan Changhong advances green supply chain development to reduce pollution and promote circulareconomy, achieving efficient resource utilization; optimizes supply chain structure to enhance operationalefficiency and reduce costs; drives process technology upgrades to inject momentum for sustainablecorporate development.
Green access
In the introduction of suppliers, the Environmental Impact Assessment and environmental managementsystem certi?cation of production sites are taken as quali?cation requirements, Evaluation extends beyondeconomic and quality standards to include environmental compliance and social responsibility performance.The Company enters into access agreements with qualified suppliers, requiring that purchased materialscomply with environmental protection requirements and are accompanied by environmental protectiontest reports (e.g., RoHS, REACH) upon delivery. Regular inspections are conducted by quality personnel. Theprocurement contract clearly stipulates that suppliers must comply with environmental protection lawsand regulations, maintain zero major environmental accidents, and meet the standards for the dischargeof industrial waste (wastewater, exhaust, solid waste, noise), thereby strengthening their environmentalprotection responsibilities.
The Company has established an energy conservation and emissions reduction promotion team. Under itsguidance, the three-tier management organizational system comprising "company, energy managementdepartments, and work teams" has been further improved. Management systems such as the "EnergyManagement Measures" and "Energy Management Assessment Methods" have been formulated. Additionaltechnical and managerial personnel have been assigned to expand the scope of supervision and inspection,while strengthening on-site energy supervision and energy-saving technology exchange across all units.
?Governance
Risks,?Impacts?and?Opportunities
Green?Production
?Energy?UtilizationSichuan Changhong consistently adheres to the principle of "safe, rational, economical, and environmentallyresponsible energy use", strictly implements national energy laws, regulations, and standards, andstrengthens foundational energy management. It actively tests and promotes new energy-saving andenvironmentally friendly processes, technologies, methods, and products, drives equipment upgrades incompliance with national requirements, and continuously implements process energy-saving projects. Thesee?orts have achieved signi?cant results in energy conservation, cost reduction, improved economic e?ciency,and environmental protection.
Green procurement
Green materials
The Company utilizes an intelligent supply chain platform for digital contract management with suppliers,prioritizing the purchase of raw materials and services that meet environmental standards. This initiativereduces the use of hazardous substances and promotes circular economy practices.
Materials are selected in compliance with the RoHS directive and the EU REACH regulations. Formanufacturing process materials, the Company increasingly adopts paint-free molding technology for plasticcomponents, and replaces ink printing processes with micro-structured thermal embossing for optical lightguide plates, reducing ink pollution. Regarding packaging materials, the Company uses new air column bagsinstead of white foam for improving recyclability, and applies minimalist packaging design to reduce theconsumption of EPS/EEPE/cardboard.
Risks
Categ
ory
Financial?
Impact
Impact?Dura-tion
Impact?
Level
Mitigation?MeasuresRisk?Description?
and?Impact
Energy Management-Related Risks and Impacts
Energyand re-sourceeffi-ciencyregula-tory re-quire-ments
Policyandlegalrisks
With increasingly strin-gent national require-ments on energy, energye?ciency, and materiale?ciency across indus-tries, meeting energyconsumption-related reg-ulatory standards posesgreater challenges to theCompany's productionequipment and technol-ogies.
This may requirethe Company to in-vest additional cap-ital and technologyto comply with thenew energy e?cien-cy standards, therebyincreasing both com-pliance costs and op-erational expenses.
Medi-umLongterm
Closely monitor changes in inter-national and domestic environ-mental and energy-related laws,regulations, and policies.Gradually adopt clean energy.Reduce carbon emissions fromthe source, continuously carryout energy management work,and promote energy-saving tech-nological transformation.
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
?Management?MeasuresSichuan Changhong adheres to the green and low-carbon development concept, continuously optimizes theenergy management system, and enhances the e?ciency of energy use. By means of re?ned management,technical transformation, and energy inspection, the Company continues to promote energy conservationand consumption reduction.The main energy sources involved in the production and operation of the Group include purchased electricity,natural gas, and heat (steam). Corresponding energy management measures have been formulated fordi?erent industries.
The Group has established and continuously improved its energymanagement system, breaking down the annual energy-savingtargets to each energy-consuming unit; it carries out certificationwork for the energy management system, regularly revises the systemdocuments, and conducts inspections and recti?cations by the energyadministration department.
The Group has established a three-level energy inspection system of "work teams - energymanagement department - company", which conducts regular energy patrol inspections andrandom checks to strengthen on-site energy management and eliminate energy waste. TheEnergy Power Operation Center organizes professional inspections every month, strictly checkingenergy management records as well as the on-site usage of water, electricity, gas, etc. A total of48 energy on-site inspections were carried out in 2024, identifying and rectifying 17 instances ofenergy issues related to "running, over?owing, dripping, and leaking" in 12 units and 16 energyusage risks in 28 units. The Company rewarded units with outstanding energy-saving results andenergy conservation awareness.
The Company deploys integrated information systems for water, electricity, and gas measurement,installs metering devices at all energy consumption nodes, and establishes remote meterreading and real-time monitoring systems to promptly detect abnormal energy consumption.It implements three-tier metering management for high-energy-consumption equipment,develops energy conservation incentive/penalty mechanisms, and executes daily supervision andperformance evaluation protocols.
Risks
Category
Financial?Impact
Impact?Duration
Impact?
Level
Mitigation?MeasuresRisk?Description?
and?Impact
Oppot-unities
Category
Financial?Impact
Impact?Duration
Impact?Level
Mitigation?MeasuresRisk?Description?and?Impact
Energy Management-Related Risks and Impacts
Energy Management-Related Opportunities and Impacts
Con-sumerprefer-ences
Green,low-carbon,andener-gy-sav-ingprod-ucts
Mar-ketrisks
Prod-uctsandser-vices
As consumers' environ-mental consciousnessincreases, demand forgreen and smart homeappliances continues tointensify. The home appli-ance market is experienc-ing accelerated productrenewal cycles, with us-ers showing a clear pref-erence for eco-friendlyand low-carbon products.This trend necessitatesgreater emphasis on en-vironmentally sustainabledevelopment in productdesign.
The home appliancesector is experiencing atransformative wave ofproduct innovation, fue-led by rising environmen-tal awareness amongconsumers. This shift isaccelerating demand forenergy-e?cient greenproducts that can reducewaste, lower costs andcarbon emissions. Whilegreen product develop-ment requires upfront in-vestment, the bene?tsbrought in the long termfar exceed the costs.
Continuous innova-tion in products andtechnological ad-vancements increas-es production costs.At the same time, in-creasing consumerawareness and pref-erence for environ-mentally friendlyproducts leads to in-creased promotionalcosts.
Innovation in tech-nology and productsdrives the iterationof the Company'shome appliance of-ferings, contributingto increased marketshare and enhancingthe reputation of cor-porate social respon-sibility.
Medi-um
Medi-um
Longterm
Provide green production, greenpackaging, etc., to meet consum-ers' environmental protectionneeds.Actively explore and apply newtechnologies and processes toimprove resource e?ciency andreduce energy costs.Identify and engage in emergingmarkets.Adapt to market demand, seizethe consumption upgrade oppor-tunity of the home appliance in-dustry, and formulate marketingstrategies.
By actively implementing greenand low-carbon initiatives, in-cluding developing clean energy,promoting low-carbon technol-ogies, and adopting new energyequipment, the Company con-tinues to increase its investmentin green development throughfunding and resource allocation.Through measures such as re-source recycling and regenera-tion, the Company has e?ectivelyenhanced the carbon e?ciencyand low-energy consumptionperformance of its products.
Me-diumtermLongterm
Energy?Management?System?Construction
The Company adopts high-efficiency equipment such as LED?xtures, installs variable frequency drives on high-power productionequipment motors, deploys closed-loop waste steam recoverysystems for boiler operations, and phases out high-energy-consumption, low-efficiency devices to promote the iteration andupgrading of old equipment.
?Energy?Equipment?Upgrading?and?Transformation
Energy?Measurement?and?Monitoring
?Energy?Inspection
Sichuan?Changhong?Packing?&?Printing: Install?46?sets?of?secondary?energy?metering?devices at each energy consumption node, and establish remote meter reading and real-timemonitoring systems to achieve precise energy consumption management.
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
The Company improves employees' awareness of energy conservation, and advocates the use of energy-saving among all employees by organizing energy-saving publicity week activities, conducting energy-saving training, and formulating special energy-saving measures during high-temperature periods. Itestablishes a part-time energy administrator team to continuously promote on-site inspection with rewardand punishment mechanisms.
?Objectives?and?Progress
Comprehensive energyconsumption per unitof 4.583 tce/10,000 setsComprehensive energyconsumption per unitof 12.465 tce/10,000standard sets
Comprehensive energyconsumption per unit< 4.514 tce/10,000 setsComprehensive ener-gy consumption perunit < 12.278 tce/10,000standard sets
Comprehensive energyconsumption per unit
3.965 tce/10,000 sets
Comprehensive energyconsumption per unitof 11.259 tce/10,000standard sets
112.16
115.40
Unit
Pro-ducts
2021?Energy?Conservation?Target?Completion?Status
Completion?Rate（%）2024?Energy?Conservation?Target
2024?Energy?Conservation?Target?
Completion?Status
Energy?Consumption?Category
Unit202220232024
Natural gasSolar (photovoltaic)
tonton10,000 kWh1,000,000 kJ
tce
10,000 m?10,000 kWh
1,443.88
226.87
1,588.27
600.38
1,817.02
824.00
19,482.4321,861.84 25,179.01 tce
78,868.67
1.654
81,424.86
1.497
97,806.51
1.496
147.53
635.12
42,720.93136,786.001,072.56
144.89
548.81
44,163.69125,233.80
0.00
144.33
541.93
54,969.58119,222.50
0.00
Note: The Group has continuously expanded its statistical scope. The 2024 disclosure scope of energy consumptioncovers production facilities for TVs, refrigerators (freezers), air conditioners, washing machines, kitchen appliances,small household appliances, general equipment, and intermediate products, including over 10 domesticmanufacturing bases such as Mianyang, Zhongshan, Hefei, Jiaxing, Jingdezhen, and Jingzhou, achieving fullcoverage of domestic production bases. The 2022 data statistical scope refers to the "Sichuan Changhong ESGReport 2022", while the 2023 data statistical scope refers to the "Sichuan Changhong ESG Report 2023".
Energy Consumption Data for the Past Three Years
Basic information on energy use
Among them: classi?ed by energy type
Usage of clean energyAmong them: classi?ed according to energy types
Sichuan?Changhong?Component?Technology: Optimize baking equipment to reduce baking time,
saving CNY?24,000 in electricity costs annually; add manual air valves in the baking and soakingprocess, achieving power feedback and reducing electricity consumption by 30% in the process,saving CNY?50,000 in electricity costs annually.
Sichuan?Changhong?Jijia?Precision?Industry: Optimize product mix, renovate or eliminate
outdated production equipment, improve the efficiency of sheet metal painting lines, andpromote the iterative upgrade of old forklifts. In 2024, the energy consumption per CNY?10,000 ofoutput value decreased by 5% year-on-year, and the energy-saving target completion rate in keyproduction areas reached 100%.Sichuan?Changhong?Mold?and?Plastic?Tech:?Actively promote energy-saving technologytransformation. Replace 30?outdated injection molding machines with high-e?ciency, servo-drivenenergy-saving models, and upgrade 41 machines by converting hydraulic material storage motorsto electric ones, signi?cantly reducing energy consumption.Sichuan?Changhong?Packing?&?Printing: Adopt variable frequency drives for all production motorsabove 4kW, and upgrade all air compressors to frequency conversion screw models, effectivelyreducing energy consumption.
Sichuan?Changhong?Battery:?By organizing energy-saving training, formulating special energy-saving measures during high-temperature periods, and conducting routine inspections, thecompany reduced energy costs in 2024 by?11.53% compared to the previous year.
Energy?Conservation?Publicity,?Education?and?Training
Smartdisplay
Total comprehensive energy
consumption
PetrolDiesel oilPurchased electricity
Clean energy consumption
Heat (steam)
Comprehensive energyconsumption/CNY 1,000,000
of output value
Fuel converted from waste
oil and other fossil fuels
ton standard
coaltce/CNY1,000,000output value
Air condi-tioncompany
Televi-sionAir con-dition-er
Sichuan Changhong ESG Report
Empowering Green Development, Leading a Sustainable Future
The Group places high importance on water resource management, fully implementing the principles of"water conservation, water resource protection, and comprehensive utilization." And the Group also strictlycomplies with relevant laws and regulations such as the Water Law of the People's Republic of China and theWater Conservation Regulations, actively ful?lling our water-saving responsibilities and obligations.
?Water?Resources?Utilization
Setting?Water?Conservation?Targets
The Group has established a sound water resources management system, formulated rules and regulationssuch as the "Energy Management Measures" and the "Energy-Saving Management and AssessmentMeasures", clari?ed annual water conservation goals, and strictly implemented the assessment mechanism.At the same time, the Company has strengthened the inspection of water supply equipment and pipelines,promptly rectified problems such as water running, overflowing, dripping, and leaking, and improved there?ned management of water use.
Water?Conservation?Technology?TransformationThe Group has optimized its production processes, promoted the renovation and elimination of high-water-consuming equipment, and strictly implemented the review of water resources recycling utilization fortechnology transformation projects to ensure e?cient water use.
Water?Resources?Recycling?and?ReuseThe Group has actively promoted the treatment and reuse of industrial wastewater, adopting variousmeasures such as sedimentation puri?cation, zero discharge of electroplating wastewater, and recycling ofglass screen cleaning wastewater, to improve the recycling rate of water resources. It has established a steamwaste heat recovery system to send the residual steam back to the boiler, reducing fresh water consumption,and promoted energy-saving cooling technology to optimize equipment cooling methods.
SichuanChanghongJijia PrecisionIndustry
ChanghongAirConditioner
SichuanChanghongReal Estate
SichuanChanghong
Battery
IndicatorsUnit20232024
12,170,084.11
2.24
14,292,610.21
2.19
Note: The Group has continuously expanded its statistical scope. The disclosure scope of total waterconsumption and water resource consumption intensity in 2023 and 2024 covers production facilities for TVs,refrigerators (freezers), air conditioners, washing machines, kitchen appliances, small household appliances,general equipment, and intermediate products, including over 10 domestic manufacturing bases suchas Mianyang, Zhongshan, Hefei, Jiaxing, Jingdezhen, and Jingzhou, achieving full coverage of domesticproduction bases.
Water Resource Consumption Data in the Past Two Years
?Ecological?Water?Conservation?and?Rainwater?Resource?UtilizationThe Group coordinates domestic, production and ecological water use, promotes the utilization of rainwaterresources, and enhances the recycling rate of water resources.
In 2024, Sichuan Changhong Real Estate installed sponge city facilities such aspermeable?concrete?pavements,?sunken?greenbelts,?and?rainwater?storage?tanksin development projects to collect rainwater for use in landscaping maintenance,road watering, and replenishing water features, saving approximately 5,000?tons?ofmunicipal tap water annually.
A target was set in 2024 to reduce water consumption per CNY 10,000 of outputvalue by 5% year-on-year. By optimizing product mix and production processes,implementing wastewater treatment and reuse measures, the water-saving goals inkey production areas were achieved by?100%.
Wastewater generated in the production process is subjected to chemicalprecipitation. Part of it enters the recycled water treatment system for industrialproduction, and part is used for toilet ?ushing. The water reuse rate reached 48.6%?in 2024.
Introduce deep cryogenic cooling technology for refrigerant heat exchangers,significantly reducing water consumption and saving?3,000?tons of fresh waterthroughout the year. Starting in 2024, an air circulation cooling system wasequipped for all heat dissipation devices, achieving a year-on-year decrease of
1.81% in water consumption and a year-on-year reduction of 31.44% in water
consumption intensity.
tont/CNY 10,000Total water consumptionWater consumption intensity
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
The Group implements full-process control and systematic oversight to prevent pollution at the source,covering production wastewater, domestic sewage, and air emissions. During the reporting period, 10subsidiaries of the Group, including Sichuan Changhong Jijia Precision Industry, Sichuan Changhong Battery,and Sichuan Changhong Mold and Plastic Tech, were listed by the local ecological and environmentalauthorities as key regulatory units for environmental protection in 2024 (hereinafter referred to as "keypollutant discharge units").
Emission?Management
The Group strictly implements the national and local standards for wastewater discharge, establishes the"Pollution Prevention and Control Management Measures", and takes multiple measures in wastewatermanagement and emission reduction to monitor and constrain wastewater discharge. During the reportingperiod, the discharge concentration and total discharge volume of wastewater from key pollutant dischargeunits in the Group were all within the legal standards (detailed emission data can be found in the Company's2024 Annual Report). No penalties were imposed by regulatory authorities.
Wastewater?Management
Implement?Classi?ed?Management?of?Wastewater
Adopt?Advanced?Wastewater?Treatment?Technology
Sichuan?Changhong?Jijia?Precision?Industry
Recycle?Water?and?Reuse?Wastewater
Conduct?Regular?Wastewater?Monitoring
Sichuan?Changhong?Component?Technology
Sichuan?Changhong?Battery
Sichuan?Changhong?Battery
Construct?Wastewater?Treatment?Facilities
Sichuan?Changhong?Jijia?Precision?Industry
Sichuan?Changhong?Battery
Strictly distinguish industrial wastewaterfrom domestic sewage, promote separationof rainwater and sewage, and adopt differenttreatment processes. Wastewater from domesticsewage is pre-treated in septic tanks and greasetraps, while industrial wastewater is treated bymethods such as chemical precipitation or reverseosmosis depending on the type of pollutants.
Establish a dedicated water resources treatment center,where wastewater undergoes processes such as chemicalprecipitation, coagulation, quartz sand filtration, and thenenters the recycled water system and is further treatedby activated carbon + RO reverse osmosis for productionof purified water. The center is networked with the localecological environment bureau for monitoring. In 2024, theamount of recycled water exceeded 100,000 tons.
Build wastewater treatmentstations according to produc-tion requirements, and equip thestations with online monitors, toensure that treated wastewatermeets discharge standards orachieves zero discharge.
Set up four wastewater treatment stationsin different production line areas, adoptthe chemical precipitation method with aremoval rate of pollutants exceeding 90%,and strengthen equipment inspection andmaintenance to ensure that the wastewatermeets the discharge standards and can bepartially recycled and reused.
The Group strictly complies with the Atmospheric Pollution Prevention and Control Law of the People'sRepublic of China and monitors and regulates air emissions in accordance with national and local emissionstandards. It has established an air pollution prevention and control system to standardize emissionsmanagement, enhance daily oversight, and ensure compliance. During the reporting period, the Group'skey emission indicators, including emission concentration and total emissions, remained within legal limits(detailed emission data can be found in the Company's 2024 Annual Report). No penalties were imposed byregulatory authorities.
?Waste?Gas?Management
Adopt various technologies such as coagulation reaction,sedimentation, sand filtration, chemical precipitation,reverse osmosis, evaporation, and A/O biologicaltreatment system to ensure the efficient and stablewastewater treatment and reduce pollutant discharge.
Entrust third-party institutions to take samples andtest regularly to ensure that wastewater treatmentmeets the standards, and accept the supervision ofenvironmental protection departments to improvecompliance management level.
Adopt recirculating water forsome processes or equipment,and reuse treated wastewaterin production to reduce theconsumption of fresh waterand wastewater discharge.
Treat wastewater by chemicalprecipitation method and recyclequalified water for production toachieve the circulation utilizationof water resources.
Monitor wastewater monthly, andconnect the data to the local ecologicalenvironment bureau for real-timemonitoring of emissions to ensurecompliance.
Establish wastewater treatment stations to achieve a 50% rateof wastewater reuse.
Adopt reverse osmosis technology to recycle wastewater forproduction, further reducing water resource waste.
The key pollutant discharge units of the Group treat all types of wastewaters through in-house sewagetreatment stations to ensure compliance with standards before discharging into municipal sewage pipelinesfor further processing by professional local wastewater treatment plants. All discharges are indirect, posing noimpact on employees or local community residents.
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
Optimize production processes, adopt clean energy and low-emission technologies,such as promoting the replacement of low-VOC raw materials; upgrade processes, suchas adopting vacuum degreasing process to replace traditional gas-based degreasing,eliminating waste gas generation and recovering volatile oil.
Source Reduction
Manage the equipment for waste gas generation in conjunction with the treatmentfacilities to ensure effective collection of waste gas; conduct regular inspections,maintenance, and replacement of adsorbents (such as activated carbon and ?lter nets)for the waste gas treatment facilities.
Process Control
Construct waste gas treatment facilities employing a combination of advancedtechnologies, including activated carbon adsorption (primary/secondary stage), UVphotolysis, catalytic combustion, ?lter cotton ?ltration, spraying, and electrostatic oilfume treatment; upgrade and transform existing treatment facilities, such as increasingthe number of activated carbon adsorption stages, and introducing online monitoringsystems, to improve treatment e?ciency.
Sprinkler + ?lter cotton +Two-stage activated carbon
upgrade
For dust-containing waste gas in the production process, a dedicated wastegas treatment system was built, with organized emissions discharged througha 20-meter-high exhaust stack. The environmental protection and equipmentdepartments conduct regular inspections of the waste gas treatment facilities,including their operation, maintenance, and servicing, to ensure optimalperformance.
Install online monitoring equipment at the spray-painting exhaust outlets tomonitor emissions in real time. Paint mist is first captured by water curtainadsorption in spray booths, followed by treatment through purification systemsbefore final emission discharge. The waste gas from plastic injection processes iscaptured by collection hoods, then treated through activated carbon adsorption andother puri?cation technologies before compliant emission.
Key pollutant discharge units regularly entrust third-party institutions to conduct wastegas testing to ensure compliance with emission standards. The Company has installedfacilities such as eco-friendly air conditioners, mechanical ventilation, and localexhaust ventilation to improve indoor air quality.The emission outlets of the key pollutant discharge units are distributed across production parks. All exhaustgases undergo dedicated treatment through specialized air pollution control systems to ensure compliantdischarge, resulting in minimal impact on employees and surrounding communities.
The Group classifies and handles solid waste generated during the production process in accordance withlaws and regulations such as the "Solid Waste Pollution Prevention and Control Law", the "Regulations on theAdministration of Recycling and Treatment of Waste Electrical and Electronic Equipment", and the "Measuresfor the Administration of Permit for Operation of Dangerous Wastes", thereby ensuring the safety andenvironmental protection of waste disposal. In view of the di?erent characteristics of various waste materials,the Company has formulated the "Solid Waste Management Procedure" and the "Hazardous ChemicalsManagement Procedure", further standardizing the collection, storage and disposal of waste generated duringthe operations to ensure that waste is properly handled and pollution to the environment is reduced oravoided.During the reporting period, the Group achieved a 100% compliance rate in the lawful transferand disposal of hazardous waste. No penalties were imposed by regulatory authorities for solidwaste management practices.
Waste?Disposal
SichuanChanghongJijia PrecisionIndustry
SichuanChanghong
Battery
SichuanChanghong
Mold andPlastic Tech
Adopt advanced production processes to reducethe generation of waste gas such as sulfuricacid mist, hydrochloric acid mist, nitric acidmist, and boiler waste gas from the source, andupgrade the spray and electrophoresis wastegas treatment facilities to "spray + ?lter cotton+ two-stage activated carbon" to improve thetreatment e?ciency.
Spraying and electrophoresis
waste gas treatment
End-of-Pipe Treatment
Monitoring and Compliance
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
Solid Waste Management Initiative
The Company clearly classifies solid waste into general industrial solid waste(waste plastics, waste steel, etc.) and hazardous waste (waste alcohol, wastecircuit boards, etc.). It set ups dedicated management departments andcompliant storage facilities (general solid waste warehouse, hazardous wastewarehouse), implements zoned and labeled management, and conducts regularinspections and recti?cations.
Categorized?Management
General industrial solid waste is partially sold to quali?ed recycling companiesthrough bidding and other methods for recyclable utilization, while the non-recyclable industrial waste is handed over to the park or qualified entities forhandling. Hazardous waste is entrusted to qualified units for comprehensiveutilization or harmless disposal, strictly implementing the electronic trackingsystem throughout the transfer process.
Compliant?Disposal
Resource?RecoveryThe Company actively promotes waste-to-resource conversion through physicalseparation of oil/emulsion-containing metal scraps to achieve solid-liquidseparation and material recovery, systematic recycling of plastic rejects andmolding gates, and tender-based sales of sorted waste materials to facilitateresource reuse.
The Group places high priority on mitigating potential risks associated with solid waste management througha multi-layered control system, including establishing an emergency pool for hazardous waste, formulatingemergency response plans and regularly conducting drills, strengthening legal and regulatory publicity andtraining for employees to enhance risk awareness, and having environmental administrators participate in orsupervise critical processes that may have signi?cant impacts.
Waste Risk Management
Digital?ManagementLeveraging platforms such as "Zero-Waste Sichuan", the Company hasimplemented end-to-end digital tracking of solid waste through its entire lifecyclefrom generation and temporary storage to final disposal. This system enablesonline processing of inventory records and electronic waste transfer manifests.
Waste Management Cases
Sichuan?Changhong: Establish a waste exchange platform, where each unit publishes informationon scrap materials, further improving the comprehensive utilization of waste and reducingproduction costs.Guangdong?Changhong?Electronics:?Implement special programs to maximize waste reuse,including during factory renovations, setting up dedicated teams to assess, dismantle, repair,and remodel discarded materials, achieving a 95% recycling rate for recoverable materials duringrenovation.Sichuan?Changhong?Mold?and?Plastic?Tech:?Set up recycling temporary storage stations, postresponsibility information, QR codes, labels on hazardous waste temporary storage stations,maintain inventory logs, entrust qualified units to dispose of hazardous waste, and regularlyorganize emergency drills for hazardous waste.Sichuan?Changhong?Packing?&?Printing:?Implement classified management for general solidwaste and hazardous waste, set up temporary storage areas for hazardous waste, sign contractswith qualified entities, maintain hazardous waste inventory logs, achieving a?100% compliancerate for the proper transfer and disposal of hazardous waste; Committed to the harmless disposaland recycling of waste, with a main waste recycling rate reaching?100%.
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
Solid Waste Discharge Volume in the Past Three Years
4,343.82
0.07
126,932.97
1.94
Note: 1. The Group has continuously expanded its statistical scope. The 2024 disclosure scope of hazardouswaste and general solid waste in covers production facilities for TVs, refrigerators (freezers), air conditioners,washing machines, kitchen appliances, small household appliances, general equipment, and intermediateproducts, including over 10 domestic manufacturing bases such as Mianyang, Zhongshan, Hefei, Jiaxing,Jingdezhen, and Jingzhou, achieving full coverage of domestic production bases. The 2022 data statisticalscope refers to the "Sichuan Changhong ESG Report 2022", while the 2023 data statistical scope refers to the"Sichuan Changhong ESG Report 2023".
2. The expansion of the statistical scope has led to an increase in the total amount of hazardous waste and
general solid waste;
3. 100% of the generated hazardous waste was entrusted to external professional quali?ed units for treatment;
4. Hazardous waste: waste printed circuit boards, waste acid, waste mineral oil, etc.; General solid waste:
waste iron, waste plastic, etc.
ton
tont/CNY1,000,000
t/CNY1,000,000
Carbon?Footprint?ManagementThe Group has actively established a comprehensive product lifecycle carbon emission management system,and engaged third-party certification institutions to carry out systematic carbon footprint certification forthree refrigerator (freezer) models and three washing machine products under its umbrella based on the ISO14067 standard for product carbon footprint quanti?cation.It has developed a full lifecycle assessment model covering "production - distribution - usage - end-of-lifedisposal", achieving precise greenhouse gas emission data quantification for each phase, and obtainingauthoritative product carbon footprint certificates. This initiative has provided data support for the low-carbon improvement of products, and signified a milestone in establishing green product matrix, laying asolid foundation for the subsequent development of environmentally friendly products.
Carbon FootprintCerti?cation forRefrigerator (MRF - 252W)
Carbon FootprintCerti?cation forRefrigerator (MRF - 424W)
Carbon FootprintCerti?cation forRefrigerator (MRF - 431W)
Carbon Footprint Certi?cationfor Front - loading WashingMachine (MG80 - 14586B2)
Carbon Footprint Certi?cation
for Front - loading WashingMachine (MG100 - 14596B2H)
Carbon Footprint Certi?cation
for Front - loading WashingMachine (MG120 - 14658D2H)
The Group's refrigerators (freezers) and washing machines
were awarded full life cycle carbon footprint certi?cates
IndicatorsUnit2024Total hazardous waste generated
Total general solid waste generatedHazardous waste generated per million yuan of output
value
General solid waste generated per million yuan of output
value
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
Creating?a?Green?Working?Environment
Optimize component mounting processes to reducehigh-energy-consumption and high-pollutionprocedures, minimize waste circuit board edges frominsertion mounting and post-treatment waste suchas used filter screens and spent activated carbon.Upgrade existing factory wave soldering equipmentthrough technical improvements, introduce newnitrogen-assisted wave soldering machines.
Upgrade the spray-paintingwaste gas treatmentsystem by replacing theUV photolysis process withactivated carbon treatment,increasing the volatileorganic compounds (VOCs)removal rate to over 80%.
?Green?Technology?TransformationThe Group continues to strengthen green design and green manufacturing efforts, enhancing the design,development, and production of energy-saving products and environmentally labeled products, while activelyadvancing the construction of green factories.In 2024, Sichuan Changhong Mold and Plastic Tech obtainednational-level green factory certification, while Sichuan Hongrui Electric, Sichuan Changhong PrecisionElectronics Technology, Sichuan Changhong NeoNet Technologies, and Sichuan Changhong Battery receivedprovincial-level green factory certi?cations.
The Group actively implements green and low-carbon development principles, continuously optimizingproduction and operational methods. Through initiatives such as green technological upgrades, and greeno?ces, improves resource utilization e?ciency, and drives sustainable development.
?Green?BuildingThe Group implements multi-faceted green building measures by applying advanced materials andtechnological upgrades to existing structures. These e?orts focus on reducing energy consumption throughenergy e?ciency improvements, ventilation optimization, rainwater utilization, and roof greening, enhancingenvironmental quality while ensuring proper waste disposal, reducing lighting energy consumption byintroducing natural light through increased fenestration, implementing comprehensive environmentalmanagement for molding processes across the parks, covering production techniques, pollution control,monitoring systems, and transportation methods.
Guangdong Changhong ElectronicsAdopt advanced green building materialsto implement energy-saving renovationsfor existing structures, including naturalventilation, rainwater collection andutilization, and green roofs, reducing buildingenergy consumption and resource usage.
Changhong Air Conditioner
Optimize factory circuit installation design to achieve segmented lighting control inproduction areas, reducing energy consumption.
Energy-e?cient designRainwater harvesting and utiliz
ation
Green Roofs
Naturalventilation
+
Two ware factory shop lighting replacement
In 2024, while the original design already met standards including the “Assessment Standardfor Green Building (GB/T 50378)”, Changhong Air Conditioner upgraded over?400 high-e?ciency LED lights (200Lm/W) to replace 150W standard LED lamps, enhancing factory energyconservation. The project is estimated to achieve annual electricity savings of approximately120,000?kWh.
Sichuan?Changhong?NeoNet?Technologies
Sichuan?Changhong?Jijia?Precision?Industry
SichuanChanghong
NeoNetTechnologies
Sichuan Changhong ESG Report
Empowering Green Development, Leading a Sustainable Future
?Green?O?ceThe Group actively promotes green office initiatives and has formulated the "Energy ConservationManagement and Assessment Measures." These measures regulate and advocate for daily o?ce practices andemployee behaviors to drive green, low-carbon, and emission reduction e?orts across the entire company.
Green?O?ce?Initiative
The Company vigorously promotes paperlessoperations by leveraging digital systems toenable fully electronic document drafting,approval, circulation, and archiving. Thissignificantly reduces paper consumption,decreases reliance on forest resources,improves o?ce e?ciency, and ensures faster,more convenient information transfer.
Paperless O?ce Advocacy
To maximize paper utilization, the Companyencourages double-sided printing.Employees have adopted this practice indaily work, substantially cutting paper useand indirectly reducing energy consumptionand pollution from paper production.
Double-Sided Printing Promotion
The Company prioritizes energy-savingoffice equipment, such as energy-efficientcomputers, printers, and copiers, whichmaintain performance while effectivelyreducing energy consumption.
Energy-E?cient Equipment Adoption
The company is progressively replacing traditional office lighting with LED fixtures, whichoffer high efficiency, long lifespan, and eco-friendliness. This reduces lighting system energyconsumption and lowers maintenance and replacement costs.
LED Lighting Implementation
To minimize energy waste, the Companystrictly regulates air conditioningtemperatures - no lower than 26°C in sum-mer and no higher than 20°C in winter.This balanced approach ensures employeecomfort while reducing energy usage.
Optimal Air Conditioning Temperature Control
Green?PackagingThe Group places high importance on material management and recycling, strictly controls the receipt,dispatch, and storage of materials, and implements full-life-cycle material reduction management. Packagingmaterials are strictly selected based on the principles of lightweight, recyclable, and reusable design toachieve re?ned management of material usage.Actions for Green and Reduced Packaging
Comparison of Suppliers' Original Non-Reusable Packaging (Left)
and Current Reusable Packaging (Right)
Sichuan?Changhong?NeoNet?Technologies:?Strictly implement product standards, standardize
processes, and improve precision in material management to reduce waste. Establish theInput-Output Ledger to ensure accounting accuracy, while compliance was guaranteed throughenvironmental standards and traceability mechanisms. Ensure precise control of materialpreparation and requisition to lower inventory costs and enhance production e?ciency.Changhong?Air?Conditioner:?Select packaging materials following the principles of lightweight
design, recyclability, and reusability. Promote over 95% reusable packaging adoption amongupstream suppliers and over?80% packaging material recycling rate for local suppliers. Adoptelectronic product manuals to reduce paper usage by more than?70%. Implement packagingreduction for residential central AC products through EPS foam structure optimization andsubstitution, decreasing cushioning component consumption (25% reduction for 1.5HPproduct packaging, 8% for 3HP products). Packaging material usage decreased by 0.29%?year-on-year during the reporting period.
Paperless
O?ceAdvocacy
Energy-E?cientEquipment
Adoption
LEDLightingImplement-
ation
Double-Sided
PrintingPromotion
Optimal AirConditioningTemperature
Control
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
Total materials usedPackaging materials usedProportion of recycled materials
675,852.0547,097.21
38.15
2,248,802.03
100,418.02
61.22
831,388.1670,728.22
49.47
Note: 1. The Group has continuously expanded its statistical scope. The 2024 disclosure scope of total materialused and packaging material used covers production facilities for TVs, refrigerators (freezers), air conditioners,and parts, including over 10 domestic manufacturing bases such as Mianyang, Zhongshan, Hefei, Jiaxing,Jingdezhen, and Jingzhou, achieving full coverage of domestic production bases. The 2022 data statisticalscope refers to the "Sichuan Changhong ESG Report 2022", while the 2023 data statistical scope refers to the"Sichuan Changhong ESG Report 2023".
2. The main reason for the increase in total materials used and packaging materials used is the continuous
increase in the Group's industrial gross output and the expansion of the statistical scope.
tonton%
Developing?Circular?EconomyThe Group vigorously promotes circular economy initiatives, Changhong Grun establishing over 1,000 usedappliance recycling outlets nationwide and constructing China's ?rst dedicated production line for resourcerecovery of discarded display screens. Leveraging proprietary recycling channels and dismantled materialsupplies, it focuses on TVs, computers, mobile phones, and tablets to achieve environmentally efficientextraction of rare metals (indium, silver, etc.) and sustainable regeneration of glass/plastics, building anationally and globally leading demonstration base for advanced display screen resource recovery.In 2024, with special funding support, Changhong Grun processed 1.82 million units/sets of discardedappliances, including approximately 400,000 refrigerators, 350,000 televisions, 340,000 air conditioners,280,000 washing machines, and 450,000 computers.Note: In 2010, the company initiated the establishment of Changhong Gerun. In 2017,Changhong Gerun came under the control of the company's controlling shareholder.
Material Usage Data in Past Three Years
Changhong Home Appliances Full Lifecycle Circular System"Trade-In" Product Recycling Initiative of the GroupThe Company actively responds to the Action Plan for Promoting Large-Scale Equipment Upgrades andConsumer Goods Trade-Ins, systematically advancing electronics trade-in programs to encourage consumerparticipation in recycling. In 2024, green product sales exceeded CNY 400 million. By establishing a closed-loop system encompassing collection, dismantling, recycling, and subsidies, the initiative enhances productreuse rates, demonstrating the company's commitment to environmental protection and sustainabledevelopment.
IndicatorsUnit202220232024
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
Environmental Protection Training Data of Sichuan Changhong in Recent Three Years
Ecosystem?and?Biodiversity?Conservation
Biodiversity, as a core element of healthy ecosystem functioning, not only supports ecological balance butalso underpins the sustainable development of human society. With a strong sense of responsibility, theGroup is fully committed to biodiversity conservation, integrating it throughout corporate strategy andoperations. Under the Group's management, all project sites are located within industrial parks, avoidingnational, municipal, or county-level nature reserves, wildlife protection zones, forest parks, scenic areas,key cultural heritage sites, ecologically sensitive areas and rare wildlife habitats. None of the sites fallwithin ecological conservation redlines, ensuring full compliance with planning requirements and localenvironmental compatibility. Moreover, all operational activities strictly adhere to regulations, guaranteeingno adverse impacts on local biodiversity.
Conducting?Environmental?Protection?Education?and?PublicitySichuan Changhong extensively conducts green and low-carbon education campaigns, utilizing banners,WeChat official accounts, advertisements, and other media platforms to diversify online and offlinepromotional activities with corporate characteristics. It widely organizes environmental protection awarenesstraining to enhance employees' resource conservation and environmental protection consciousness,accelerating the adoption of simple, moderate, green, low-carbon, and healthy production and lifestyles.During the reporting period,the Group conducted 1,109 environmental training sessions throughthree-tier education programs, monthly meetings, and specialized training, covering 27,848participants.The company encourages employees to actively participate in various environmental - friendlypublic welfare activities, such as environmental knowledge promotion, garbage classification, and tree -planting, and put the concept of green environmental protection into practice with concrete actions.
9,286.76
22,682
6,057.63
1,10927,848
4,335.66
1,05425,142
The Group invited ISO 14001 auditing experts to provide intensive training on the ISO 14001standard and related knowledge to 79 environmental management officers. This initiativecomprehensively enhanced their auditing skills and management capabilities, promoting deeperintegration of the management system with environmental protection work.
Sichuan?Changhong?Conducted?ISO?14001?Standard?Training
Sichuan?Changhong?invited?Experts?of?Sichuan?Academy?of?Eco-Environmental?Sciences?for?Training
Sichuan?Changhong?Battery
Sichuan?Changhong?Precision?Electronics?Technology
Sichuan?Changhong?Packing?&?Printing
The Group engaged environmental protection experts from the Sichuan Academy of Eco-Environmental Sciences to conduct regulatory knowledge training for principal responsiblepersons of all production and operation units. This initiative enhanced the environmentalawareness and management competencies of the executives.
Conducted annual environmental protection management training, organizing environmentalmanagement personnel and key staff to study national regulations such as the Measures forPollutant Discharge Permitting Administration to further standardize environmental managementmechanisms.Organized training on household waste sorting, and arrange for environmental protectionmanagement personnel and key sta? to study relevant national regulations.On June 14, 2024, Sichuan Changhong Package & Printing organized a safety and environmentalprotection knowledge competition.
Key?IndicatorsUnit202220232024CNY 10,000Timeperson-time
Environmental protection
investmentEnvironmental protection
trainingEnvironmental protection
training participation
Sichuan Changhong ESG ReportEmpowering Green Development, Leading a Sustainable Future
Strive for zero production safetyincidents with direct economic loss ofCNY 1 million or more
Achieved: Zero such incidents occurredStrive for zero ?re accidents with directeconomic loss of CNY 500,000 or more”
Achieved: Zero such accidents occurredZero occupational diseases (includingacute occupational poisoning)
Achieved: Zero cases100% compliance with the “ThreeSimultaneities (safety, environmentalprotection, and occupational health)”system for new, renovated, expanded andconstructed projects
Achieved
Achieved
Achieved
Achieved
100% safety training pass rate beforeonboarding for new, transferred, andreinstated employees100% detection rate of occupationalhazard factors100% compliance in occupational healthmonitoring
Empowering with Care,Safeguarding EmployeesRights and Interests
Sichuan?Changhong??rmly?believes?in?aligning?company?growth?with?employees?development.?By?upholding?compliant?and?fair?employment?practices,?caring?for?and?supporting?employees,?fostering?their?development,?and?safeguarding?occupational?health,?the?Company?has?built?a?full-lifecycle?employees?rights?and?interests?protection?system.?Through?the?bidirectional?integration?of?institutional?standards?and?human-centered?care,?employees?are?empowered?to?realize?their?value?in?a?fair,?safe,?and?inclusive?environment.
Respond to the United Nations Sustainable Development Goals (SDGs)
Achievement?of?objectives?in?20241–-10-Year?Objectives(2021–2030)
Commitment?to?Compliant?Employment
Sichuan Changhong strictly abides by relevant national laws and regulations, such as the “Civil Code of thePeople's Republic of China”, the “Labor Law of the People's Republic of China”, the“Labor Contract Law ofthe People's Republic of China”, the “Law of the People's Republic of China on Promotion of Employment”,and the “Provisions on Prohibition of Child Labor”, as well as applicable laws in the regions where it operatesoverseas. The Company has formulated institutional documents such as the “Recruitment ManagementMeasures” and “Employment Management Guidelines”, and continues to improve its employee managementsystem to safeguard employees' fundamental rights and interests.
Risks
Opport-unities
Health issuesamong em-ployees maylead to in-creased med-ical expensesand reducedproductivity
Establish agood corporateimage to attractoutstanding tal-ents and cus-tomers
High turnoveramong produc-tion personnelleads to talentloss and risingrecruitmentcosts
Improvework e?-ciency andinnovationcapabilities
Expenditure (re-cruitment andtraining costs fornew employees)
Revenue (in-creased from prod-uct innovation andproductivity im-provement)Expenditure (re-duced due to im-proved e?ciency)
Shortterm
Mediumterm
Longterm
Longterm
Expenditure(medical subsi-dies, sick leavewages)Revenue (de-creased due toreduced produc-tivity)
Revenue (in-creased from im-proved attractionof customers andtalents)
Medi-um
Low
Low
Medi-um
Establish a comprehensive employeeincentive and promotion system to enhanceemployee satisfaction and sense of belongingConduct regular employee satisfactionsurveys to promptly address employeeconcerns
Conduct employee skill training and team-building activitiesIntroduce advanced employee managementphilosophy and techniques such asperformance management systems
Establish an employee health managementsystem and provide regular health check-upsOffer health training and mental healthcounseling services for employees
Strengthen CSR communication,highlighting employee care initiativesParticipate in public welfare activities toimprove corporate recognition
Risk/Oppor-tunity
Description?
of?Risk,?Opportunity,?
and?Impact
Financial?
Impact
Impact?Duration
Impact?
Level
Mitigation?Measures
Recruitment?Principles
Risks,?Impacts?and?Opportunities
Positions are created based on actual needs; candidatesare selected according to job requirements; andprinciples of fairness, impartiality, and scientificmanagement are followed
Acquire global talents without restrictions without beingbound by conventions, encourage internal referrals,and conduct con?ict-of-interest avoidance in candidateselection
Sta??Structure
Note: The definitions of impact duration and impact level in the “Empowering with Care, SafeguardingEmployees Rights and Interests” section of this report are as follows:
1. According to the Company's sustainable development strategy, the impact duration is divided into three
categories: short term, medium term, and long term. Short term refers to the period within one year (inclusive)after the end of the reporting period; medium term refers to one to five years (inclusive) after the reportingperiod; and long term refers to more than ?ve years after the reporting period.
2. The impact level is categorized into three levels: low, medium, and high. A "low impact level" refers to ①
currently neutral with potential future impact, or ② currently or potentially having an adverse e?ect. A "mediumimpact level" refers to currently having an adverse e?ect with possible negative consequences in the future. A"high impact level" refers to ① currently having a negative e?ect with the likelihood of strong future adverseimpact, or ② a high probability of strong adverse impact either now or in the future.
Person
5,964
9,6488,51512,33214,291
6,713
3,592
13,993
6,205
3,238
12,29211,503
13,289
3,720
2022
2,0006,0004,0008,00012,00010,00016,00014,000
20232024
Person
41,129
45,44345,376
25,93426,14219,30119,44223,40417,725
2022
5,00010,00020,00030,00040,000
15,00025,00035,00045,00050,000
20232024
Total number ofemployeesNumber of maleemployeesNumber of femaleemployeesNumber ofemployees aged 29and belowNumber ofemployees aged30–39Number ofemployees aged 40-
Number ofemployees aged 50-
Number ofemployees aged 55and above
Employee?count?from?2022?to?2024
6,653
Statistics?of?employee?age?distribution?from?2022?to?2024
Sichuan Changhong ESG ReportEmpowering with Care, Safeguarding Employee Rights and Interests
The number ofChinese employeesThe number offoreign employees
Regional?employee?count?2022-2024
25,9438,2642,7653,218
3,504
45,376
Production employees
Sales employeesTechnical employeesR&D employeesFinance employeesAdministrative employeesManagerial employeesOther registered employees
Total
Functional?Role?Category
Number?of?Employees
Functional Composition
9,4647,02027,90145,376
Doctorate degreeMaster's degreeBachelor's degreeAssociate degreeOtherTotal
Education?Level
Number?of?Employees?(person)
Educational Background
Labor contract signing rateSocial insurance coverage rateProportion of female managersLocalization rate of overseas employees
%%%%
IndicatorsUnit
15.64
95.76
2022
15.66
96.61
2023
14.24
97.46
2024
Equal?EmploymentThe Company adheres to the principle of equalopportunity. In accordance with its “RecruitmentManagement Measures”, the Company strictly complieswith labor laws and regulations concerning employeerights and interests, carries out recruitment in a fairand transparent manner, and prohibits any form ofemployment discrimination based on nationality, gender,age, race, religion, pregnancy, or disability. All employeesare treated equally.The Group promotes equal employment and supportsjob opportunities for special groups. In response to thenational call to promote the employment of persons withdisabilities, the Group launched a special recruitmentprogram prioritizing job opportunities for people withdisabilities living in nearby communities.
Prevention?of?Child?Labor?and?Forced?Labor
The Company strictly implements the “Employment Management Guidelines”, “Labor ContractManagement Measures”, and “Leave Management Measures for Employees”, signing employmentcontracts with employees in accordance with the law, complying with national working hour standards, andresolutely opposing all forms of child labor and forced labor. It also ensures employees' rights to reasonableworking hours and rest, and guarantees that employees enjoy legally mandated holidays. The Company hasformulated the “Leave Management Measures for Employees”, which explicitly define leave types suchas family reunion leave, marriage leave, bereavement leave, maternity leave, work injury leave, sick leave,and personal leave, thereby protecting employees' basic rights. During the reporting period, there were noincidents of discrimination, child labor, or forced labor.
Changhong Jiahua created designatedpositions for persons with disabilitiesacross multiple departments andemployed quali?ed candidates withdisabilities.Changhong Minsheng hired 6 =persons with disabilities.
In 2024：
Employees are entitled to paid annual leave in accordance with the law. During the signing of the LaborContract, the Company strictly complies with the “Labor Law” and the “Regulations on Paid Annual Leavefor Employees”, with clear stipulations on working hours and leave entitlements. Meanwhile, new employeeonboarding includes speci?c training on leave policies to ensure transparency of rights and obligations.
?Paid?Annual?Leave
Employees who have accumulated over 1 year but less than 10 yearsof working experience are entitled to 5 days of annual leave.Employees who have worked for 10 years or more but less than 20years are entitled to 10 days of annual leave.Employees who have worked for 20 years or more are entitled to 15days of annual leave.
The Company adopts a tieredannual leave system based onemployees' years of continuous
service:
Person
40,453
44,80744,194
1,182
2022年
10002000300040005000
2023年2024年
Sichuan Changhong ESG Report
Empowering with Care, Safeguarding Employee Rights and Interests
Remuneration?and?WelfareThe Company starts from employee needs and upholds a mechanism of “Dedication and Responsibility, Innovationand Sharing.” It follows the compensation philosophy of “paying for position, competence, and performance.”In accordance with legal requirements, the Company provides employees with statutory bene?ts, including socialinsurance, housing fund contributions, and paid holidays, thereby fully protecting employee income rights.The Company pays salaries on a ?xed day, and no salary default happened throughout the year. With the system ofcollective discussions on salaries, the Company has ensured reasonable income growth for its employees. In 2024,the Group's average salary per employee increased by 3.62%. The Company actively addresses employee needsthrough various initiatives, including care assistance, Employee Assistance Program (EAP), workplace improvements,commuting shuttles, dining facilities, employee consolation programs, health checkups, cultural activities,educational advancement rewards, scholarships for employees' children admitted to university, and vacationrecovery programs. These e?orts have bene?ted all employees and have been widely recognized.
Democratic?ManagementThe Company adheres to a democratic management system based on the employee representative congress, andimplements democratic election, consultation, decision-making, management, and supervision in accordance withthe law. These mechanisms fully mobilize employees' enthusiasm, initiative, and creativity, fostering a harmoniouslabor relationship. In the meantime, the Group continuously promotes the development of a multi-level workers'congresses system and a tiered collective consultation mechanism. This enhances the quality of grassrootsworkers' congresses and ensures that employees actively participate in corporate management and development.It effectively safeguards employees' rights to information, participation, expression, and supervision, therebystrengthening corporate cohesion and employee satisfaction. The Company has established a reasonable ande?ective internal grievance mechanism. Employees can express concerns or suggestions via workers' congresses,complaint boxes, suggestion books, and forums. Relevant departments follow up on such matters to ensure thatemployees' legitimate rights and interests are fully protected. The Company has been awarded the “National May1 Labor Award,” “National Model Workers' Home,” “National Advanced Unit for Factory A?airs Openness andDemocratic Management,” “National Model Unit for Factory A?airs Openness and Democratic Management,” and“National Ankang Cup Advanced Unit.”
The Company strictly adheres to national labor protection laws and has established a comprehensive care systemthat covers the full maternity cycle. Female employees are entitled to maternity leave in accordance with the law,as well as miscarriage recovery leave and breastfeeding rights according to medical needs. Male employees mayapply for paternity leave to ful?ll family responsibilities. In addition, the Company has introduced considerate careprovisions such as prenatal checkup leave and postnatal personal leave, providing supplementary support to helprelieve the temporary pressures faced by employees during the maternity period.To protect employees' career development rights, the Company enforces a position retention mechanism duringmaternity and paternity leave, ensuring that job titles and grades remain unchanged. Regular communicationmechanisms are in place to facilitate a smooth transition back to work. In terms of logistical support, the Companyhas standardized the setup of nursing rooms at headquarters and all regional o?ces, equipped with breastfeedingrest areas and basic nursing facilities, providing a safe and private space for employees with childcare needs.By combining the implementation of statutory rights with proactive corporate care, the Company continuouslyimproves the construction of a family-friendly workplace environment.
?Caring?Bene?ts
“National?May?1?Labor?Award”“National?Model?Unit?for?Factory?A?airs?Openness?and?Democratic?Management”
“National?Ankang?Cup?
Advanced?Unit.”“National?Model?Workers'?Home”
“National?Advanced?Unit?for?Factory?A?airs?
Openness?and?Democratic?Management”Awarded
Warm-Hearted?Support?and?ConsolationThe Group genuinely cares for its employees and is committed to addressing their needs with sincerity andcompassion, consistently carrying out employee consolation and support activities as a regular practice. In2024, the Company raised the holiday consolation allowance for active employees from CNY 200 to CNY 800and increased the number of major holiday consolations from 4 to 5 per year.
Enhancing?Employee?CareThe Group is deeply committed to meeting the needs of its employees and consistently strives to supportthem with sincerity and practical actions. The Company has increased its care e?orts for frontline workers,families in hardship, and female employees, aiming to address their real challenges and foster a harmonious,caring enterprise where employees feel a strong sense of happiness and belonging.
it conducted consolation visits to active and retired employees across platformdepartments, extended care to employees su?ering from critical illnesses, work-relatedinjuries, or hospitalizations, assisted in funeral-related cases, and helped organize healthcheck-ups for subsidiaries and occupational disease screenings for subsidiaries.
47,000
Throughout the year, the labor union conducted over consolation visits to modelworkers, craftsmen, and frontline employee representatives.
7,000
In 2024:
Employee consolation activities
Sichuan Changhong ESG ReportEmpowering with Care, Safeguarding Employee Rights and Interests
Centered on employee satisfaction, the Group strives to address employees' urgent and critical needs. Acomprehensive assistance mechanism has been established to support employees in di?culty, including asupport ledger and digital platform. Leveraging the Hongkang Medical Relief System, the Company providesaid for major illnesses and family-related hardships. The Company actively promotes the application processfor employees in hardship and implements tiered support strategies to ensure timely relief and long-termresolution.
Caring?for?Employees'?Mental?Health
Employee?Assistance?and?Support
The Group places high importance on the emotional well-being and mental health of its employees and isactively advancing the development of its psychological care system.
the Company continued to o?er monthly in-person psychological counseling services, deliveringone-on-one sessions. Throughout the year, it also held mental health awareness lectures, themedworkshops, and Mental Health Day activitiesreaching over employees in total.
1,500
In 2024：
Dedicated?Care?and?Support?for?Female?EmployeesThe Group attaches great importance to the development of female employees, actively fostering a respectful,supportive, and caring environment, and creating broader opportunities for their growth. By establishingrole models and highlighting the excellence of female employees, the Company motivates them to innovateand enhance performance in their roles. Annual recognition is given to outstanding female individuals andexemplary employee families to inspire progress and strengthen female employees' sense of happiness andbelonging, encouraging their greater contribution to corporate growth.
Activities for female employees
The Company promoted the pilot construction ofprovincial-level “Mommy & Baby Rooms,” with
facilities used16,000 times throughout the year.
The Company organized over4,000femaleemployees to participate in themed activities such as“Fragrant Roses, Shared Reading” and “FragrantRoses, Reading for Growth.” Additionally,
femaleemployees participated in the Fragrant Roses ·Building Year Reading Campaign organized by All-China Federation of Trade Unions.
The Company hosted “Rainbow Cube” socialnetworking events for over
young employees.
Sichuan Changhong ESG ReportEmpowering with Care, Safeguarding Employee Rights and Interests
Over 3,000 female employees participatedin the “Respect and Uphold the Law · JoinHands to Pursue Dreams” online knowledgecompetition.
The Company strengthened its care initiativesfor female employees by providing supportto single mothers, migrant women workers inhardship, and exemplary female employees,with a total of
cases of special care.
The Company organized more than3,500female employees and family members toparticipate in the Sichuan Provincial MajorIllness Mutual Aid Plan for Female Workers, andarranged ?u vaccination sessions for over2,000participants.
The Company held “Family Values Inheritance· Love on Children's Day” themed events withover2,000 participants.
Employee?Engagement?ActivitiesThe Company has always regarded building harmonious labor relations as a key component of its humanresources strategy. With the goals of safeguarding employees' legitimate rights and interests, promotingcorporate development, and maintaining social stability, the Company regularly organizes a variety of culturaland sports activities to encourage employee participation and foster a positive, healthy cultural atmosphere,thereby enhancing employees' sense of ful?llment, happiness, and professional belonging.
Respect and Uphold the Law ·Join Hands to Pursue Dreams
Sichuan Changhong ESG ReportEmpowering with Care, Safeguarding Employee Rights and Interests
Changhong Cup Sports GamesChanghong Carnival
Changhong Employee Fun Sports Show
Sichuan Changhong ESG ReportEmpowering with Care, Safeguarding Employee Rights and Interests
Empowering?Employee?DevelopmentEmpowering employee growth and unleashing their potential are key drivers of sustainable corporatedevelopment. Sichuan Changhong has always upheld a “people-oriented” talent development philosophy,aiming to respect, rely on, train, and grow with its employees. The Company seeks to fully unlock employees'potential and align personal value aspirations with corporate goals by building broad development platformsto support employees in achieving their career ambitions.
Open?and?Transparent?Career?PathwaysThe Company has established a robust career development system offering “dual-track” careerdevelopment path of both professional development and management development. Annual job levelevaluations are conducted for all employees. Based on individual capability and contributions, high-performing employees are promoted in rank and receive corresponding salary adjustments, supporting theirpersonal value realization through steady growth.
The Company provides a 6–7 level promotionpathway for technical professionals across R&D,engineering technology, marketing, functions,and production.A multi-specialty qualification system hasbeen established, clearly outlining layeredrequirements for professional knowledge,skills, and key competencies, and regularlyupdated based on annual strategic needs of theCompany. In addition, employees in professionaldevelopment path are also provided withlearning resources to enhance their professionalcapabilities and achieve self-development.
Professional?Promotion?Path
A 4-level management progressionframework supports employees in theirrapid transition from self-managementto team leadership and organizationalmanagement.A talent pool of future managers hasbeen established, covering all levels ofthe Company's management structure.It focuses on developing leadership andmanagerial skills, as well as broadeningbusiness perspectives to enhance overallmanagement capability of managers.
Management?Development?Path
Special Training on “Building High-Performance Teams”
Enhancing?Employee?TrainingThe Company advocates a training philosophy centered on “training for performance, training forempowerment, and training for development.” A two-tiered training system has been established, ledby both the headquarters and business units (BUs), to implement tiered training programs. In responseto evolving business needs, the Company has intensified efforts in cultivating talent across innovationmanagement, industrial digitalization, and intelligent manufacturing.
It focuses on “development-orientedtraining”. Leveraging the ChanghongTraining Center and the HR department,the Company delivers targeted trainingfor managerial talent, critical technicalprofessionals, highly-skilled specialists,and new employees.
Headquarters?Level
It emphasizes “empowerment-orientedtraining”. Training efforts are drivenby business growth needs, focusing ondeveloping professional and businessmanagement talent. Key targets includefrontline managers, tier-A and tier-Btalent successors, professionals, andskilled workers, with a strong focus onimproving operational capabilities andbusiness acumen, ensuring the e?ectiveexecution of training initiatives.
BU?Level
Performancetraining
Empowerment
training
Development
training
Talent Cultivation Strategy
Special Training on “Intellectual Property
Management”Special Training on the Interpretation of the New
“Company Law”
Special Training on "Seal Management"Special Training on “Project ManagementPractices”Special Training on “Practicing and Inheriting
Corporate Culture”
Special Training on “Safety Production
Management”
Sichuan Changhong ESG ReportEmpowering with Care, Safeguarding Employee Rights and Interests
Safeguarding?Occupational?Health
?Safeguarding?Occupational?HealthThe Company places great emphasis on occupational health and safety management for employees. Inaccordance with the “Law of the People's Republic of China on the Prevention and Control of OccupationalDiseases” and the “Regulations on Occupational Health Management in Workplaces”, and in line with theprinciple of “joint responsibility of the Party and government, dual responsibility for each post, coordinatedmanagement, and accountability for dereliction of duty,” the Company adheres to the approach of “preventionfirst, combined with control” for prevention and control of occupational diseases. The Company hasestablished and improved its occupational health management systems and operating procedures, includingthe “Occupational Disease Hazard Monitoring and Evaluation Management System”, the “OccupationalHealth Surveillance and Records Management System for Workers”, and the “Occupational DiseasePrevention and Control Responsibility System”. These measures aimed at effectively preventing andcontrolling occupational diseases and ensuring sound occupational hygiene management.
the Company provided occupational health training to occupational healthmanagement personnel and conducted occupational health training for activeemployees. A total of employees in hazardous positions received occupationalhealth check-ups in accordance with law, achieving a % coverage rate.
27,7074,225
Regular on-site testing for occupational hazard factors was conducted, covering 3,143sampling points, with a compliance rate of %.
In 2024：
On-Site Testing for Occupational Hazard Factors
Risks
Safety inci-dents dam-aged thebrand's repu-tation
Compensa-tion and rep-utation losscaused by la-bor disputes
Supporthealthy pro-duction div-idend. Afterthe implemen-tation of theworkplace ?t-ness program,the employeesick leave ratedecreased
Expenditure (com-pensation costs),assets (deprecia-tion of brand eq-uity)Revenue (de-creased due to rep-utation loss)
Revenue (in-creased fromproductivity im-provement)Expenditure (rela-tively decreased inlabor replacementcosts)
ShorttermMediumterm
MediumtermLongterm
ShorttermLongtermRevenue (long-term decrease dueto declining mar-ket share)Assets (brand val-ue depreciation)
Medium
High
Medium
Improve labor rules and regulations andstrengthen training in labor laws andregulations.Establish a labor dispute mediationmechanism to resolve conflicts in a timelymanner.
Conduct employee skills training andteam-building activitiesIntroduce advanced employee manage-ment philosophy and techniques such asperformance management systems
Formulate emergency response plans forsafety accidents and strengthen investmentin product safety R&D.Timely disclose the accident handlingsituation, to rebuild the brand image.
Risk/Oppor-tunity
Financial?Impact
Impact?Duration
Impact?
Level
Mitigation?Measures
Risks,?Impacts,?and?Opportunities
3,143
Description?of?Risk,?Opportunity,?and?Impact
Opport-unities
Sichuan Changhong ESG ReportEmpowering with Care, Safeguarding Employee Rights and Interests
Advancing?Workplace?SafetyIn 2024, the Company implemented the “Three-Year Action Plan for Fundamental Work Safety RiskMitigation” to further reinforce the integration of development and safety in its operations.
Additionally, subsidiaries are certi?ed under the ISO 45001 System.
the Company includes subsidiaries certi?ed as second-level and as third-level instandardized safety production.
During the reporting period：
100%
compliance with the “Three
Simultaneities (safety, environmental
protection, and occupational health)”
system for new, renovated, expanded
and constructed projects
100%
safety training pass ratebefore onboarding for new,transferred, or reinstated
employees
100%
compliance in occupationalhealth monitoring
100%
detection rate of occupational
hazard factors
The Group continuously strengthens the supervision of the operational safety protocols and effectivelyimplements on - site risk control. It adheres to the principle of "tackling both the symptoms and root causes,with an emphasis on the latter". The Group conducts special fire - safety assessments, bringing in third -party professional technical institutions to conduct special assessments on the compliance of 12 ?re - controlrooms in Mianyang and the compliance of the use of key buildings, striving to address key issues in ?re - safetymanagement.
?Reinforcing?Hazard?Investigation?and?Control
To enhance safety management capabilities, improve employee safety awareness and skills, and promoteknowledge updates, the Company organized special training initiatives including Safety Lecture Series, andprograms on Environmental Protection and Occupational Health Management, with over 500 participants.The Company organized safety management personnel at all levels to participate in training focused on theinterpretation of major accident hazard identification standards for industrial and trade enterprises, on-site special operation safety management, and hazardous chemical safety management for industrial andtrade enterprises. A total of 334 employees attended, achieving a 100% participation rate. The Companycontinuously strengthens employees' professional knowledge and skills in safety. Safety education andtraining are integrated into all aspects of production and operations to enhance workforce competence andawareness.
?Safety?Training
To assess the effectiveness of emergency response plans, adequacy of preparedness, the adaptability ofemergency response capabilities, and the coordination of emergency personnel, in 2024, the Companyconducted 136 comprehensive emergency drills, 286 specialized drills, and 302 on-site response drills,involving a total of 51,295 participants. These e?orts have signi?cantly improved employee safety awarenessand emergency response capabilities.
?Emergency?Safety?Management
In 2024, the Company organized and provided trainings for51,013new employeesunder the three-level education system,1,932transferred and reinstatedemployees, and85,154active employees, achieving a
% training coveragerate.
Employees reported potential hazards and were rewarded with yuan.3,229 150,000
potential safety hazards were identi?ed across operations.The Company investedCNY million in corrective actions, achieving recti?cation of all identi?ed hazards.
100%11,372In 2024：
9.36
Sichuan Changhong ESG ReportEmpowering with Care, Safeguarding Employee Rights and Interests
Technology Creates aBetter Life
Sichuan?Changhong?champions?innovation-driven?growth?through?a?dual?focus?on?internal?capability-building?and?external?collaboration.?Internally,?the?company?has?established?a?multilayered?innovation?ecosystem,?refined?governance?frameworks,?and?implemented?performance-driven?incentive?structures?to?accelerate?technological?advancement.?Externally,?it?pursues?strategic?partnerships?in?R&D?and?technology,?fostering?cross-industry?synergies?that?have?yielded?breakthrough?innovations?and?strengthened?its?competitive?edge.
Achievement?of?Objects?in?20241–-10-Year?Objectives(2021–2030)Completion rate of 2024 technical capa-bility reserve projects ≥90%Strive to achieve 99% annual customersatisfactionStrive to achieve 100% resolution rate ofcustomer complaints
Actual completion: ≥95%
Actual satisfaction rate: 99.11%
Actual resolution rate ofcustomer complaints: 100%
Respond to the United Nations Sustainable Development Goals (SDGs)
Adhere?to?innovation-driven?developmentTechnology is the foundation of Changhong, and innovation is its hallmark. The Company regards technologicalinnovation as the core driver of its industrial transformation and upgrading, continuously optimizing managementmechanisms to enhance innovation efficiency. It has developed internal policies such as the “TechnologicalInnovation Management Measures” and “Technological Innovation Incentive Measures”, which de?ne the overallstrategy, organizational support, and project management principles and actions for technological innovation. Thesee?orts ensure a balance between short-term operations and long-term capabilities, driving high-quality corporatedevelopment.
The Company continuously improves its governance structure for innovation-driven development. Technologicalinnovation of the Company is coordinated by the Strategic Management Department and directly overseen bythe Chairman of the Board. Dedicated R&D centers of the Company are responsible for implementing innovationstrategies and carrying out speci?c research projects and tasks.
?Governance
The company recognizes the opportunities and challenges brought about by technological changes, continuouslyincreases its investment in scienti?c research and ensures the supply of talents. It endeavors to achieve a growthof more than 10% in research and development (R&D) investment in 2025, and will allocate the increased R&Dinvestment to product renewal, technological update, and technological reserve.In traditional product innovation, the Company seeks to break through information homogenization, addressuser pain points and unmet needs, and accelerate new product R&D. It is expanding the application of artificialintelligence across products, manufacturing, and operation management to enable full integration. The Companywill further improve its incentive mechanism for industrial technology innovation investment, empower businessunits in making bold and strategic R&D investments. It aims to accelerate the productization and commercializationof technological innovation to proactively meet evolving customer needs. Oriented toward consumers, the Companyis committed to developing a portfolio of “integrated” hot product suites and delivering a number of industry-leading technological achievements both domestically and globally.
?Strategy
?Risk,?Opportunity,?and?Impact
RiskCategory
Financial?
Impact
Impact?Duration
Impact?Duration
Mitigation?MeasuresRisk?Description?
and?Impact
R&Dfailure
Capability reserve projects initiat-ed for laying out forward-lookingtechnologies, generic technologies,and di?erentiated core technolo-gies involve forecasting applicationpotential. If forecasts are inaccu-rate, R&D outcomes may fall shortof expectations or fail to be appliedin time, resulting in R&D invest-ment loss.
R&D invest-ment cannotbe recov-ered; andmarket ex-pansion op-portunitiesare missed.Technol-ogy risks
Mediumterm
Medium
Carry out dynamic tech-
nical strategy planning
with regular updates;
strengthen project pro-
posal review;establish
phased investment and
decision-making mech-
anisms to contain po-
tential losses.
PatentDis-putes
Patents re-lated to au-dio/videocodecs anddigital signaltransmissionstandards inconsumerelectronics.
This may a?ect productsales domestically andinternationally, resultingin reduced revenue; orexcessive licensing feesbeyond expectationsmay lead to increasedproduct costs and ad-versely impact the Com-pany's pro?tability.PatentRisk
Mediumterm
Medium
Engage with patent holders tonegotiate proprietary tech-nology and licensing scheme.Through joint negotiations byindustry organizations, a bettersolution can be formulated.Joint solution of industry organiz-ations: It is suggested that theindustry form an alliance andnegotiate together.Cost reserves: reserve costs inalignment with negotiationprogress.
Note: The definitions of impact duration and impact level in the “Chapter IV Technology Creates a Better Life.”section of this report are as follows:
1. According to the Company's sustainable development strategy, the impact duration is divided into three
categories: short term, medium term, and long term. Short term refers to the period within one year (inclusive) afterthe end of the reporting period; medium term refers to one to ?ve years (inclusive) after the reporting period; andlong term refers to more than ?ve years after the reporting period.
2. The impact level is categorized into three levels: low, medium, and high. A "low impact level" refers to ① currently
neutral with potential future impact, or② currently or potentially having an adverse effect. A "medium impactlevel" refers to currently having an adverse e?ect with possible negative consequences in the future. A "high impactlevel" refers to ① currently having a negative e?ect with the likelihood of strong future adverse impact, or ② a highprobability of strong adverse impact either now or in the future.
RiskCategory
Financial?Impact
Impact?Duration
Impact?Duration
Mitigation?MeasuresRisk?Description?
and?Impact
The riseof arti?-cial intel-ligencetechnol-ogy androboticsindustry
The widespread adoption of art-ificial intelligence technologiesis expected to provide strongtechnical support for the Com-pany in reducing costs and im-proving operational efficiency.With the rapid developmentof related industries, theCompany's early deploymentmay help establish a new growthdriver.
Optimizethe Compa-ny's industri-al structure,enhance itscompetitive-ness, andincrease rev-enue or prof-itability.
R&D op-portunity
Longterm
High
Actively invest in relevant
technologies; launch
capability reserve
projects; and promote
industrial incubation and
commercialization of
results
Oppor-tunity
Category
Financial?
Impact
Impact?Duration
Impact?Duration
Mitigation?MeasuresOpportunity?Description,?Impact
Sichuan Changhong ESG ReportTechnology Creates a Better Life
?Management?Measures
The Company has issued the"Technical Platform R&D Project Management Measures" and "Technical PlatformPerformance Management Measures"to continuously improve its technology platform project managementsystem. It enhanced the orientation of "market orientation and self-sustaining nature of R&D", strengtheningproject management from the aspects of project initiation and performance evaluation to enhance outputquality. The Company has established a comprehensive R&D project management process, forming a PDCAcycle that includes goal setting, process control, performance evaluation, and continuous improvement.
The Group has established an Advanced Technology R&D Centerto support the incubationof emerging industries such as robotics and to carry out basic technology research on forward-lookingapplication.The Group has established an Arti?cial Intelligence Laboratory and a Cloud Computing and BigData Research Centerto strengthen technical coordination with the Digital Business BG, driving research inAI application scenarios and digital factory solutions.The Group has establishedover 20 industrial support platforms includingan Innovation DesignCenter and a Smart Home R&D Center, including leveraging technical capabilities to enhance productcompetitiveness across industries.
The Group is committed to continuously enhancing its innovation capabilities by upholding a strategy of"independent innovation + collaborative innovation" and improving a three-tier technical framework coveringapplication basic research, generic technology research, and product and manufacturing technology R&D. In2024, the Company optimized its headquarters' technical system, deepened research on generic technologies,and enhanced technological empowerment and support for the industry.
Building?a?Technological?Platform?System
Improving?Technology?Project?Management
Application basic technology research
Generic technology researchProduct and manufacturing technology R&D
Strengthening?Scienti?c?and?Technological?Innovation?Collaboration
The Group remains steadfast in advancing scienti?c and technological innovation, achieving breakthroughsin key technology areas through strategic foresight and sustained investment, and securing numerous corepatents and cutting-edge results. By the end of 2024, the Company had 14 national and provincial enterpriseswhich are specialized, re?ned, di?erentiated and innovative. 16 high-tech enterprises, 2 national technologycenters, 2 national industrial design centers, 3 ministerial-level innovation centers, platforms or bases, and 4provincial engineering laboratories, research centers, or support hubs.
?Increasing?R&D?Investment
Additionally, it has established more than joint laboratories, joined over associationsand industrial alliances. By fostering an extensive resources-based collaborative innovationecosystem, the Company improves innovation collaborative e?ciency and drives industrialoptimization and upgrading.
The Group has built diverse channels for scienti?c and technological innovationcollaboration, deepening industry-university-research partnerships and acceleratingthe transformation of innovation outcomesIt has established an industry-university-research cooperation ecosystem with overuniversities, research institutes, and more than business partners worldwide.
Product strategyMarket informationCustomer feedbackCompetitiveinformationTechnology trendsProduct portfolio
R&D plan(Directionrecomme-ndation)
Pre-researchstage(if necessary)
R&D plan reviewProject initiationdecision
AcceptancedecisionProject initiationdecision
Milestonedecision
Project initiationdecision
Acceptance decisionEmpowerment contract
Capability reservestage(market-driven)
Empowermentstage(applicationof results)Industrializationstage(commerciali-zation of results)
Sichuan Changhong ESG ReportTechnology Creates a Better Life
Smart TVsThe Company focuses on core technologies such as AI voice, large models, and Mini LED, and deepenscooperation with industry partners in areas like AI models, cloud services, and smart home systems to drive AITV innovation breakthroughs. The world's ?rst AI TV powered by the"Canghai Intelligent Agent"supportsmulti-turn dialogue, deep contextual understanding, AI medical consultation, AI painting, and other intelligentfeatures, signi?cantly enhancing user experience. The ARTIST Art TV won the AWE 2024 Best Product Award.The“Key Technologies and Applications of Integrated Light Field 3D Display”project wasawarded the Second Prize for the National Technological Invention Award.
中德智能制造合作试点示范项目
智能制造试点示范
（彩电智能制造）
四川长虹电器股份有限公司
中德合作基于个人化定制的家电智能制造
数字化虚拟工厂样板建设试点示范
中华人民共和国工业和信息化部二0一六年九月
中华人民共和国工业和信息化部二0一五年六月
Air ConditionersChanghong Air Conditioner has developed key technologies including refrigerant system conditionawareness, topology optimization simulation, and AI-driven cloud energy saving around core technologiessuch as variable frequency, simulation, and AI. Based on the “AI + airflow sensing, air outlet, and aircontrol” product line strategy, new models are equipped with AI precision control and smart self-cleaningwith sterilization. Product lines have been upgraded with 360° dust-free double-wing wall-mounted units andpanda-style smart cabinets. The brand also launched the industry's highest energy-e?ciency air conditionerunit, continuously upholding the Changhong Air Conditioner brand philosophy of “Exquisite Craftsmanship,Comfort in Every Degree.”
Sichuan Changhong ESG ReportTechnology Creates a Better Life
Refrigerators & FreezersThrough precise control of market trends and research on the preferences of consumer groups, ChanghongMeiling has been adhering to the product upgrading concept of "freshness, thinness, narrowness, and built-in integration". It has been committed to continuously enhancing the competitiveness of its products. In 2024,it continued to strengthen the product business cards of "Meiling Freshness", "Meiling Thinness", "MeilingNarrowness", and "Meiling Built-in Integration".
Washing MachineChanghong Meiling has deeply explored users' needs, rapidly enhanced its strength in core technology?elds, and made its product layout more complete. On the basis of the hand-washing series of drum washingmachines, it launched the "Blue Ozone Hand-washing-like" series of products. In terms of pulsator washingmachines, it further enriched the lineup of the "Hercules" series products and created featured products withstronger brand recognition.
Refrigerator CompressorChanghong Huayi has achieved breakthroughs in key technologies such as inverter energy efficiencyimprovement, GaN material application, and high-reliability compressor structure design. Its independentlydeveloped “VTN Series” ultra-high-efficiency inverter compressors deliver industry-leading performanceand have been recognized as Excellent New Industrial Products in Zhejiang Province. At the 2024 China LightCommercial Refrigeration Annual Conference, the Cubigel NMD Series R290 inverter compressor was o?ciallylaunched with a COP of 1.95 W/W—setting a new benchmark in energy e?ciency. It features high e?ciency,low noise, and intelligent tuning, making it the preferred solution for the European C-Class energy standardand China's new Grade 1 energy e?ciency standard for commercial refrigeration equipment.
ICT ServicesChanghong Galaxy actively lays out emerging directions such as cloud computing, artificial intelligencecomputing centers, digital security, the metaverse, and low-altitude economy. Relying on its own technicalservice capabilities, it integrates a rich product portfolio and solutions, and provides a variety of industrysolutions and scenario-based solutions. Changhong Galaxy offers one-stop multi-cloud infrastructureintegration products and solution services, accompanying partners and customers throughout the entireprocess from cloud consulting, cloud planning to cloud migration, cloud operation and maintenance, andcloud security management. It customizes solutions for going to the cloud and operating on the cloud toensure that partners and customers can maximize the effectiveness and value in the application of cloudtechnologies.
Sichuan Changhong ESG ReportTechnology Creates a Better Life
The Group continues to advance its digital transformation efforts to enhance intelligent manufacturingcapabilities. Leveraging the industrial internet, the Group promotes the optimization of CMF (Color,Material, Finish), establishes a CMF joint laboratory, and builds a comprehensive sample library for spraying,electroplating, and oxidation processes. It has also increased investment in precision mold technologies,enabling mass production of laser-textured molds combined with fabric-like spray e?ects—thereby achievingprecision manufacturing capabilities for PC-based products.
Digital?Transformation
Relying on our self-developed, ?rst-in-Sichuan cross-industry and cross-domain industrialinternet platform, we developed replicable solutions for over scenarios such asmanufacturing execution and warehouse logistics, cumulatively serving nearly SMEs.3,000
The Group is accelerating its “intelligent and digital transformation” initiatives andactively building an internet service ecosystem in the Sichuan-Chongqing region.
Throughout the year, more than key equipment renewal projects were implementedwith an investment exceeding CNY million. The Changhong “5G + Industrial Internet”customized smart display factory was selected as one of the ?rst batch of national-leveloutstanding smart factories.
Intellectual?Property?ProtectionThe Company complies with regulations such as the“Enterprise Intellectual Property Management” andthe “Intellectual Property Management Manual”,establishing a comprehensive IP management systemto ensure efficient operation. Four policies includingthe “Patent Management Measures” and “PatentRisk Management Measures” were implemented tobuild a patent management framework and risk controlmechanism. These standardize patent applicationprocesses, patent valuation criteria, and establish an IPincentive system to protect employee inventors' rights.The Company strictly adheres to principles of respectingIP rights and avoiding legal risks to safeguard corporateand investor interests.
As of December 31, 2024, the totalvalid patents reached .
8,520
In 2024：
the Company ?led newpatent applications and obtainedgrants, including inventionpatents.
1,322
Authorized patentsAuthorized inventionNew patent applications
1,338
1,226
1,322
1,268NumberNumberNumber
IndicatorsUnit202220232024
Establishing a Cross-Border IP Service Hub
Conducting IP Training
Big Data Search & Analysis
As an international IP workstation in Sichuan Province, the Company leverages the "Sichuan ChanghongGuidance Station" to create a cross-border IP service hub. In collaboration with government and industryorganizations, it provides international IP training and exchange programs for SMEs in Mianyang. Thecompany has listed 7 intelligent manufacturing and new material patents on the National Intellectual PropertyOperation Platform, o?ering free ?rst-year access to support SME technological innovation and achievementpromotion.
Through specialized events like World Intellectual Property Day and National Intellectual Property PublicityWeek, the Company organizes IP training and publicity campaigns for technical and IP personnel to enhancetheir innovation capabilities and IP protection awareness.
The Company employs big data search and analysis technologies to actively build an IP rights monitoringsystem for e?ective IP protection.
Sichuan Changhong ESG ReportTechnology Creates a Better Life
Technical capability reserve project
completion rate
≥90%≥95%IndicatorsTargets?for?2024
Reporting?Period?Achievement?Objectives?and?Progress
Emphasizing?Technology?EthicsThe Group prioritizes technology ethics management. The technical teams adhere to the values of ethicalinnovation, human-centricity, and societal bene?t in areas involving user research, information security, androbotics applications. During project reviews, it emphasizes risk identification and analysis, implementingpreventive measures for potential ethical risks to ensure timely intervention and correction. This guaranteesthe compliance and ethical integrity of all technological activities. Recognizing the critical importance oftechnology ethics, the Company will continue to develop and implement relevant policies based on R&Dproject requirements, establish a Technology Ethics (Review) Committee, conduct regular inspections,evaluations, and corrective actions for ethics compliance, and promote ongoing ethics training and publicityinitiatives.
Optimizing?Product?&?Service?QualitySichuan Changhong upholds the quality philosophy of "Customer First, Excellence, Intelligent Manufacturing,and Innovation Leadership". The Company strictly complies with Law of the People's Republic of China on theProtection of Consumer Rights and Interests, Product Quality Law of the People's Republic of China, and hasimplemented the Service Quality Management Measures.
The Group implements stringent control over product and service quality by establishing a comprehensive,multi-level quality management system. The headquarters has set up a quality management department tooversee all aspects of product and service quality management. Additionally, the Company has establishedspecialized product testing centers and after-sales service entities dedicated to product inspection and post-sales support, ensuring reliable and high-quality products and services for customers.
?Governance
?Risk,?Opportunity,?and?Impact
Risk
Poor ser-vice qualitycausing com-plaints andcustomerloss
Product re-calls & com-pensationdue to quali-ty issues
Expenditure(recall costs,compensa-tion)Revenue (de-cline due tocustomer at-trition)
Shortterm
ShorttermMediumterm
MediumtermLongterm
ShorttermMediumterm
Revenue (de-cline)Expenditure(complainthandlingcosts)
High
Medium
Medium
Medium
Implement strict quality control from raw materialsto ?nished products.
Purchase product quality insurance to transfer risk.Enhance sta? service training and establish rapidcomplaint response mechanism.Regularly collect customer feedback for serviceimprovement.
Oppor-tunity
Market premi-um throughquality lead-ership
Enhancedsatisfac-tion/loyal-ty throughsuperiorproducts/services
Revenue(growth fromrepeat pur-chases & re-ferrals)
Revenue(growth fromprice premi-ums)
Implement customer satisfaction surveys andincentive programs.Continuously optimize product and qualitystandards.Increase R&D for differentiated high-qualityproducts.Conduct branding campaigns highlighting qualityadvantages.
Risk/Oppor-tunity
Risk/Opportunity?Description
Financial?
Impact
Impact?Duration
Impact?
Level
Mitigation?Measures
Sichuan Changhong ESG ReportTechnology Creates a Better Life
Establishing a Quality Management SystemThe company has developed a three-tier quality management mechanism based on the ISO9001 QualityManagement System, supported by quality manuals, procedural documents, and management standards.During the reporting period, the quality management systems covering various products/services, includingtelevisions, air conditioners, electronic components, packaging, parts, software, and warehousing/transportation, successfully passed surveillance reassessments and scope extension audits by accreditedcerti?cation bodies.
Quality Certi?cation & TestingThe Group completed energy efficiency filings for 248 flat-panel display models, obtained energy-savingcertification for 39 product series, and secured eco-label certification for 15 products. For appliances andcomponents under mandatory certi?cation, the Group implements compulsory testing and audits, achievingCCC certification for all regulated products, including 187 air conditioner models. All sampled products(including ?at-panel TVs and room air conditioners) passed random inspections by national and local marketregulatory authorities, demonstrating 100% quality compliance.
Quality Management System Certi?cation
?Management?Measures
Product?Quality?Management?The Company implements advanced quality management tools and methodologies and control systems,driving quality benchmarking and QC project improvements. With user quality requirements as the guide,business unit quality control as the core, headquarters quality supervision as the driver, and market qualityregulation as support, it fosters sustained quality enhancement for products and services through verticalcollaboration and horizontal coordination.
Quality Management AchievementsBy the end of the reporting period, 79 quality improvement initiatives of the Group were recognized asnational, ministerial, provincial, or municipal excellence projects. The Company was jointly awarded thetitle of the "Outstanding Quality Management Enterprise in Sichuan" by the Sichuan Quality Associationand Sichuan Provincial Federation of Trade Unions. From 2022 to 2024, the Company's television productsmaintained 100% compliance in national market quality supervision spot checks for three consecutive years.In 2024, the Group recorded zero product recalls, no negative product/service incidents, and zero productquality/safety incidents.
Enhancing After-Sales Service MechanismsThe Group has established a robust after-sales framework grounded in standardized systems and efficientresolution processes to fully protect user rights. It has stipulated policies including “User ComplaintManagement Measures” and “Product Return and Exchange Procedures”, clearly de?ning accountabilityfor complaint handling and standardizing resolution work?ows.After-Sales Complaint Resolution MechanismThe Group implements a multi-platform complaint collection system for rapid categorization and closed-loop management. It collects customer-posted after-service feedback and negative after-service reportsfrom market regulators through call center platforms, internet platforms, public opinion monitoring systems,E-commerce platforms, and other digital channels. All data is systematically integrated into the complaintmanagement process. In 2024, the Company achieved an after-sales service customer complaint rate of 0.19%and complaint resolution rate of 100%
The Group upholds the service philosophy of "putting users at the center of everything", implementing its"never delay a single minute" service pledge and pursuing the goal of "exceeding customer expectations". Ithas established “Service Standards Manual” and related management policies, a comprehensive servicequality assurance system, and thoughtful service processes and robust rights protection mechanisms. Thesemeasures ensure customers experience respect and care, achieving full-spectrum satisfaction enhancement.
Customer?Service?&?Rights?Protection
Sichuan Changhong ESG ReportTechnology Creates a Better Life
It has built4,000+service outlets with15,000+?star-rated service engineersproviding?24/7?services.
After-Sales Warranty ServicesThe Group adheres to transparent service policies, publicly disclosing Three Guarantees details andstandardized procedures in the o?cial website's "Service" section, with AI customer service for immediaterepair requests. A tiered response mechanism and quality traceability system ensure lifecycle serviceful?llment for repair timeliness and part replacements. Users can check product-speci?c warranty terms andclaim procedures on the website.The Company continuously optimizes its digital service platform development, ensuring comprehensiveprotection of consumer rights through dual safeguards of transparent service terms and high-efficiencyresponse mechanisms.
After-Sales Service HotlineThe Company has established national unified service hotlines: 400-811-1666 / 400-611-1666, centralizedafter-sales information system, and the "Changhong Service" WeChat official account, comprehensivelyhandling inquiries, repair requests, and complaints through user self-service portals, online customer service,and phone support. It has built 4,000+ service outlets with 15,000+ star-rated service engineers providing 24/7services.
Changhong Kuaiyidian After-Sales Service
System Certi?cation
Leveraging the Company's national servicenetwork, Changhong Kuaiyidian has establishedan end-to-end home appliance service systemcovering pre-sales, in-sales, and after-salesprocesses, providing one-Stop solutionsincluding installation, maintenance, healthinspections, and extended warranties. Thisensures consumers receive efficient andconvenient service experiences. The Companyreceived 12-Star Certification for After-SalesService System Completeness, reflecting itsoptimized service processes and professionaltechnical support.
Optimizing Logistics ServiceThe Group's Changhong Minsheng Logistics leverages digital platforms and IoT technology to enable end-to-end visual control of transportation and warehousing, e?ectively reducing logistics losses and enhancing qualitystability. Regarding transportation safety, the Company deploys 4D video monitoring systems, and integrates AIbehavior recognition for real-time driver hazard alerts, providing dual safeguards for personnel and cargo security.Simultaneously, through its GPS data cloud platform, the Company has established an intelligent dispatchingsystem to dynamically monitor route deviation risks during transportation and implement manual interventions.The warehousing process is regulated through real-time monitoring of RDC(Regional Distribution Center) storageareas, standardizing the storage and handling operation procedures of goods. In 2024, the Company's customerservice exceeded 100 clients, leveraging technology to build a green, safe, and e?cient modern logistics servicesystem. Customer Satisfaction SurveyTo continuously monitor customer satisfaction and enhance customer recognition of the brand and products, theGroup has established several management systems including the Company Customer Satisfaction Evaluationand Control Procedure, Installation and Repair Service Quality Inspection Management Measures, and CustomerSatisfaction Survey Management Measures. It employs various methods such as regular spot checks, post-repairfollow-ups, periodic satisfaction measurements, and on-site visits to continually understand customer perceptions.Internal improvement measures are implemented to consistently meet customer needs. From 2022 to 2024, over 7million samples were collected through service satisfaction surveys, with a customer satisfaction rate of 99.10%.
Customer satisfaction rate
Complaint resolution rate
99.00
99.11
99.20
%%
IndicatorsUnit202220232024
Sichuan Changhong ESG ReportTechnology Creates a Better Life
Advancing Responsibilityfor Social Well-being
Sichuan?Changhong?has?built?a?stable?and?reliable?supply?chain?system?to?promote?the?coordinated?development?of?upstream?and?downstream?industries?within?the?industrial?chain.?Upholding?the?principles?of?fairness?and?justice,?the?Company?works?hand?in?hand?with?small?and?medium-sized?enterprises?to?progress?together.?Actively?participating?in?the?rural?revitalization?strategy,?it?contributes?to?achieving?common?prosperity.?With?enthusiasm?for?public?welfare,?Sichuan?Changhong?gives?back?to?society?in?various?ways.?Furthermore,?the?Company?strengthens?its?information?security?defenses?to?safeguard?user?data?security.?It?insists?on?integrity?in?business?operations?and?conducts?responsible?marketing?and?promotional?activities.?The?Company?embodies?its?corporate?mission?through?concrete?actions,?contributing?to?the?promotion?of?high-quality?economic?and?social?development,?enhancing?the?wellbeing?of?the?people,?and?building?a?harmonious?society.
Company Consumer BusinessUnit suppliers achieved 100%commitment to ful?lling socialresponsibilityContinued to monitor andevaluate suppliers' socialresponsibility performance thisyearThe Group organized andparticipated in social welfareactivities across Sichuan,Guangdong, Anhui, and otherregions
Achievement?of?Objects?in?20241–-10-Year?Objectives(2021–2030)
Call on upstream and downstream partnersto jointly conserve energy and reduce carbonemissions. By 2030, require 100% of suppliers tocommit to fulfilling social responsibility in supplieraccess principlesMonitor and evaluate suppliers' ful?llmentof social responsibility, focusing on materialupgrades, structural optimization, andenergy consumption reduction to driveiterative upgrades of green productsAnnual dedication to social welfareinitiatives to demonstrate accountability
Support rural revitalization by helpingdevelop local characteristic industries andincrease residents' income
Invested more than CNY 9.61million in rural revitalizationthis year, ensuring precise andeffective implementation ofsupport measures
Respond to the United Nations Sustainable Development Goals (SDGs)
Building?a?Transparent?Supply?ChainSichuan Changhong utilizes a digital-intelligent supply chain system to manage suppliers throughout theentire lifecycle, from sourcing and access to ongoing management . The Company has established coreregulations including the Supplier Sourcing and access Management Standards and the Supplier RiskManagement Standards. It implements a dual review mechanism for supplier quali?cations and capabilities.As part of the supplier access criteria, suppliers are required to commit to fulfilling social responsibilities.Sichuan Changhong monitors and evaluates suppliers' performance in terms of social responsibility tosupport the sustainable development of the supply chain.
The Group is fully committed to enhancing supply chain safety governance and building a secure andsustainable supply chain system. The Company has established a supply chain management center tocomprehensively oversee the management of the supply chain.?Governance
Supply?Chain?Management
?Risk,?Opportunity,?and?Impact
Risk
Fluctuationof raw mate-rial price
Productionstagnationcaused bysupplier dis-ruption
Logisticsdisruptionsdelaying de-liveries
Revenue(decrease)Expenditure(additionalincrease)
Revenue(decline)Expenditure(increase)
ShorttermMediumterm
ShorttermMediumterm
ShorttermMediumtermLongtermMediumtermLongterm
ExpenditureMedium
Medium
Medium
Medium
Medium
Establish a diversified supply mechanism andregularly assess supply risks.Establish safety stock and optimize inventorymanagement strategies.
Diversify logistics channels via multi-carrierpartnerships.Establish contingency protocols for disruptions.
Sign long-term price agreements with suppliers.Enhance market price monitoring and adjustprocurement strategies.
Oppor-tunity
Resilient sup-ply chainattractingpremium cli-ents
Supplychain opti-mization
Expenditure
Revenue
Implement supplier performance evaluations.Advance supply chain digital transformation foroperational e?ciency.Strengthen the publicity of supply chain riskmanagement to demonstrate resilience.Develop customized supply chain solutions forkey accounts.
?Management?MeasuresSupply Chain Risk Management
Procurement Management Optimization and Supervision
Building a Smart Supply Chain
The Group continuously optimizes procurement management and approval processes, dynamically adjustsprocurement contract templates, and improves key procurement approval stages to enhance procuremente?ciency and professional capabilities. In 2024, the Company optimized4 categories of contract templatesand conducted15 on-site exchanges to strengthen business collaboration.
Additionally, communication channels for business inquiries and problem resolution were streamlined toprovide real-time supply chain-related business support to subordinate industrial units. Enhancements weremade in system operation checks and business supervision. By the end of 2024, inspections and supervisionwere completed for25 units, achieving 113% of the annual target. Immediate corrective actions were urged
upon discovery of any issues, e?ectively promoting management improvements.
Leveraging the integration of digital intelligence, the Group has constructed an intelligent management systemencompassing major modules and43 functionalities, including open sourcing, access certification,
supplier relationship management, among others. This system enables the embedding of business processesinto a digital platform throughout the entire work?ow.The utilization of an intelligent interaction platform enhances the e?ciency of supplier sourcing, acceleratesthe certi?cation of new suppliers' quali?cations, and facilitates their digital registration. In 2024, the "SupplierSourcing" module of the SPSC system published over pieces of information, added registrations for5,
new suppliers, with 87.31% of them having completed the coding process.Furthermore, the Company has comprehensively implemented electronic agreement management, achievingonline signing and dynamic tracking of commercial, technical, and quality agreements throughout the entireprocess. The management of suppliers, procurement needs, pricing, contract signing, settlement, and otherfull-chain activities are now operated online with visual tracking, significantly enhancing managemente?ciency and supply chain collaboration capabilities.
To strengthen supplier oversight and e?ectively mitigate risks, the Company implements multi-dimensionalrisk control measures. The Group has established a comprehensive risk management system coveringstringent controls over supplier access, multi-dimensional credit assessments, and blacklist management.In 2024, the Group advanced the implementation of stringent supplier access control and warning systemsacross
business units. This initiative achieved comprehensive credit screening for all quali?ed suppliers,conducted risk inspections on1,033 suppliers with a completion rate of 100%, and successfully avoided
collaboration with
high-risk suppliers. Additionally, the Company incorporated a total of 69 material andservice suppliers into its annual blacklist management system.Furthermore, the Group prioritizes suppliers' performance in environmental protection, green practices,energy e?ciency, and material recycling. Through regular risk assessments, the Group establishes safetystock thresholds and monitors inventory dynamics in real-time to ensure supply chain stability.
Risk/Oppor-tunity
Risk/Opportunity?Description
Financial?
Impact
Impact?Duration
Impact?
Level
Mitigation?Measures
Sichuan Changhong ESG Report
Advancing Responsibility for Social Well-being
Strengthening Communication with SuppliersThe Group continuously enhancescommunication and exchanges with suppliersby organizing ongoing engagement activities.In 2024, the Group took the lead in hostingthe Changhong Core Supplier Conferencethemed "Digital-Intelligent Integration? Industrial Empowerment ? PioneeringProgress". Over
participants, includingrepresentatives from more than
domestic and international suppliers andattendees from the home appliance supplychain units, gathered in Mianyang to jointlydiscuss development strategies, strengthencommunication, and enhance collaboration.
Throughout 2024, a total of6,854suppliers were involved in procurement activities with the Group, amongwhich 6,814were domestic suppliers, accounting for
99.42
% of the total number. The localization ratio ofdomestic suppliers reached
63.72
%.
The Group is committed to continuously enhancing the professional capabilities of procurement teams.During the reporting period, a total of
individuals applied for professional quali?cation certi?cation inprocurement, with a cumulative total of 535employees obtaining procurement quali?cations. The Companyadopts a training model that combines both online and offline methods, covering core content such ascorporate standard regulations and risk prevention and control in key business segments. Approximately
person-times have been trained cumulatively. Notably, the average annual training duration per employee inthe supply chain management department reached
hours.
Total suppliersDomestic supplier percentagePercentage of local procurement amount todomestic procurement amount
6,854
99.42
63.72
57.79
5,792
99.83
63.51
66.83
number
%%%
Key?IndicatorsUnit20232024
Conducting Procurement Personnel Training
Sichuan Changhong actively responds to the green transformation of the supply chain by incorporatingthe goal of "promoting coordinated carbon reduction among upstream and downstream partners" into itsstrategic planning for 2021-2030. The Company mandates that a 100% social responsibility commitmentmechanism be embedded in the supplier access process. As of this year, the Consumer Business Unit hasachieved full coverage of social responsibility commitments from its suppliers. The Company conductsfocused oversight across material innovation, structural design optimization, and energy consumption controlto drive suppliers towards technological upgrades and the iteration of green products. Concurrently, SichuanChanghong is building a digital monitoring platform to enhance transparency and management throughoutthe process, laying a solid foundation for achieving the Company's ESG strategic goals by 2030.
?Objectives?and?Progress
The Group actively participates in domestic and international industry exchanges and cooperation,showcasing its technological strength to promote technical exchanges within the industry, facilitate industrialupgrades, and lead consumption trends.During the reporting period, the Group was deeply involved in globally influential industry events such asthe AWE (Appliances & Electronics World Expo), IFA (Internationale Funkausstellung Berlin), Canton Fair,as well as key regional exhibitions like “Mianyang products out of Sichuan” and the Sichuan-ChongqingTime-honored Brands Carnival. These participations provided a comprehensive display of the Company'slatest technological breakthroughs and product innovations in areas such as AI home appliances and energy-e?cient appliances. By doing so, it reinforced the technological in?uence of "Tech Changhong", continuouslyleading new trends in smart home appliance consumption.
Promoting?Industry?Development
Percentage of the number of local suppliersto the number of domestic suppliers
Sichuan Changhong ESG ReportAdvancing Responsibility for Social Well-being
Sichuan Changhong at IFA 2024 in Germany
Sichuan Changhong at AWE
In terms of integrity risk prevention and controlthe Company has expanded the scope and depth of integrityeducation. This includes one integrity education sessionfor all heads of the procurement system across the entireGroup,
biweekly specialized integrity education sessionsspecifically targeting procurement activities, and over
realcase sharing. The Company highlights potential integrity risksin procurement work, and sets up suggestion boxes to collectspublic opinions monthly. Moreover, through continuous integrityeducation activities, the Company promotes awareness of laws,regulations, and internal integrity systems, especially conductingintegrity warnings within the supply chain system twice duringmajor holidays.
Regarding job rotation andcon?ict of interest declarations
to maintain a transparent procurementenvironment and foster a cleanworking atmosphere, in 2024,
procurement staff from 50 subsidiariesunderwent job rotation, and3,935individuals completed con?ict of interestdeclarations from 50 subsidiaries.
The Company has established and enforced the “Basic Management System for Material and ServiceProcurement” and the “Procurement Personnel Conduct Management Standards” to regulate procurementactivities according to the principles of fairness, justice, openness, and integrity. These measures clearly de?ne thecriteria that procurement personnel must adhere to during procurement management and business processes.Speci?cally, the Company has institutionalized the handling methods for supplier inquiries and complaints, as wellas the supervision and evaluation standards for procurement activities. This is aimed at continuously reinforcing aculture where corruption is deterred, prevented, and ultimately discouraged among all employees involved in theprocurement system. The goal is to build a transparent supply chain and resolutely eliminate any corrupt practices.
Integrity?in?Procurement
Procurement Oversight:The Company maintains 188 transparent procurement monitoring channels, withestablished oversight and appeals mechanisms. Suppliers may file complaints or appeals through thefollowing channels:
Procurement oversight email:cgjc@changhong.com
Procurement oversight phone: 0816-2417561Supply chain platform appeal: Suppliers can submit relevant informationthrough the "Supplier Appeal" section on the Smart Supply Chain Platform(website address: https://ecmp.changhong.com).
During the reporting period, the Company conducted integrity investigations on
suppliers monthlyand widely implemented listening and questioning activities on integrity. This year, the Group receivedeight suggestions with no reported integrity issues.
Equal?Treatment?of?SMEs
The Group deeply understands the importance of collaborative development with small and medium-sizedenterprises (SMEs). It always upholds the principles of equality, mutual benefit, and win-win cooperation,actively building harmonious and symbiotic partnerships with SMEs. The Company ensures the legitimaterights and interests of SMEs and helps enhance their development capabilities by establishing a fair andtransparent procurement mechanism, providing technical support and resource sharing, and strengtheningcommunication and exchanges. It is committed to working together with SMEs to jointly build a healthy,stable, and sustainable industrial ecosystem.During the reporting period, the Group strictly adhered to relevant legal requirements, maintaining a "zero"record of adverse credit entries in authoritative regulatory systems such as the National Enterprise CreditInformation Publicity System.
Promoting?Rural?RevitalizationIn 2024, the Group, with a high sense of political responsibility and mission, actively fulfilled its corporatesocial responsibility. Focusing on underdeveloped areas within Sichuan Province, the Company systematicallyplanned and implemented multiple measures to carry out a series of e?ective assistance projects in variousaspects such as education, talent, industries, organizations, and culture.
Sichuan Changhong ESG ReportAdvancing Responsibility for Social Well-being
Strengthening organizational leadership and overall planning: Establish a leadership group forassistance work headed by the chairman, and build an assistance mechanism featuring companydecision-making coordination, labor union-led implementation, and collaborative advancement byindustrial units. Formulate and implement a series of assistance plans, clarifying assistance goals,approaches, and measures. Allocate special funds annually to support assistance projects, andregularly dispatch company employees to carry out on-site village assistance work.Strengthening planning guidance: By formulating the "Baseline Assistance Plan for the Revitalizationand Development of Underdeveloped Areas", the "Baseline Assistance Work Plan for the Revitalizationand Development of Underdeveloped Areas (2024-2027)", and the "2024 Targeted Assistance Planfor the Development of Pingwu County" among other assistance work plans, guide the efficientimplementation of assistance e?orts.Deepening government-enterprise communication and collaboration: The Company conducts multiplefield visits to the assisted areas, engaging in in-depth communication with the local governmentto understand their needs, jointly discuss the direction, priorities, and measures of assistance, andstrengthen government-enterprise collaboration.
Promoting joint organizational building: Multiple departments and subsidiaries within the Company
engage in pairing partnerships with assisted villages. Through collaborative organizational building andco-hosted activities, they help enhance the grassroots construction and rural governance levels in theassisted areas.
The Company donated CNY 1 million as an education assistance fund to thesupported areas, invested CNY 1.4 million in conducting educational travelactivities, allocated CNY 210,000 for training village-level backbone staff, andcumulatively purchased and sold over CNY 7.9 million worth of agriculturalspecialty products from poverty-stricken areas.203 teachers received training; 252 students participated in educational travelactivities; 68 village-level backbone personnel were trained; 5,583 individuals fromunderdeveloped areas were supported through the purchase and promotion oflocal agricultural products.
More than CNY
10.51 million
Total investment (CNY
10,000)
DetailsPoverty?Alleviation?&?Rural?Revitalization?Projects
Quantity/Content
Home visits to promote compulsory education for nine
years and control dropoutComfort items were distributed to disabled children
Implementing?E?ective?Measures?to?Ensure?Tangible?Results?in?Baseline?Assistance
Balancing?Direct?Support?and?Capacity?Building?to?Enhance?Industrial?Development?Capabilities
Providing?Multi-Path?Education?Support?for?Talent?DevelopmentIn 2024, the Company donated CNY 1 million as an education assistance fund, helpingto train 203 teachers from Seda County. This initiative aims to e?ectively establish pre-school education and compulsory education teaching systems. Additionally, the Companyinvested over CNY 1.4 million to organize "Colorful Changhong" winter and summer campsfor a total of 252 teachers and students in four program sessions across Mianyang, Chengdu,and Beijing.Cultivating?New?Civil?Trends?to?Improve?Living?ConditionsIn the assisted villages, the Company conducted evaluations for sanitationstandards, elderly care practices, economic development, law compliance, andintegrity and kindness, and awarded 90 exemplary families with blankets andcerti?cates; allocated CNY 100,000 for 9 assisted villages across 2 counties to fundautumn education grants, primary school enrollment awards, Party memberwelfare, and poverty-alleviation monitoring household support; distributed CNY240,000 worth of supplies to all households in assisted villages, provided essentialaid during extreme cold seasons.
Promoting High-Standard Farmland Construction and Maintenance to Strengthen RuralRevitalizationBuilding high-standard farmland is a critical measure to ensure national food security and advanceagricultural modernization. Changhong Yunshu Company actively responds to the national strategyby leveraging technological innovation, applying digital-intelligent technologies to empoweragriculture, thereby supporting the intelligent construction and meticulous management of high-standard farmland.
6,106Bene?ciaries(person)
Establishing?a?Long-term?Assistance?Mechanism?for?Common?Development
Supporting sales to promote production expansion and upgrading of agricultural and pasto-ral enterprises. In 2024, the Company facilitated the sales of agricultural specialty productsthrough Spring Festival sales events and internal purchase fairs. These products were dis-tributed as employee holiday bene?ts, signi?cantly contributing to the production expan-sion and quality improvement of local agricultural and pastoral enterprises.Integrating resources to strengthen and supplement industry chains The Company tookthe initiative to study the agricultural strategic plans of Seda County, and facilitated assis-tance partnerships to complete the vegetable cultivation industrial chain and establish ano?-season vegetable full-industry-chain support model. It implemented a market-basedsales approach for Seda County's vegetables and other agricultural products, promotingrapid, healthy development of plateau o?-season vegetable cultivation.
Sichuan Changhong ESG ReportAdvancing Responsibility for Social Well-being
It utilizes three core technologies to aid in the construction of high-standard farmland:
Development of an e?cient integrated water-fertilizer irrigation system:
Centered aroundthe "Cloud Agricultural Park Platform", this system integrates crop growth models with dataanalysis to achieve precise irrigation and fertilization. This increases the e?ciency of water andfertilizer use while improving soil conditions.Construction of an agricultural Internet of Things (IoT):
It provides new infrastructuretechnology support for farmland. By using sensors and the "Cloud Agricultural Park Platform", itenables real-time monitoring of key data such as ?eld environment, soil quality, and crop growth.This facilitates remote monitoring, diagnostics, and precise management.Establishment of a comprehensive management system for high-standard farmland:
It achieves full visualization of farmland information, planting processes, disaster preventionand control, and yield. It also provides farmers with traceability services from planting to sales,ensuring transparency and accountability throughout the agricultural process.
Digital and intelligent farmland
?Rural?Revitalization?Assistance?Cases?of?Subsidiaries?in?2024
Sichuan Changhong Package & Printing supported rural revitalization by purchasing CNY185,000worth of meat and vegetable products from Pingwu County throughout the year.In September 2024, Sichuan Hongxin Software purchased 612boxes of yak jerky from herders,addressing the problem of unsold agricultural products for some farmers and ensuring astable income for them to a certain extent.
Changhong Huayi Compressor made targeted purchases of local specialty agriculturalproducts such as "sugar-heart apples", pears, rice, and cooking oil from Mao County inSichuan, Jingdezhen, and Yunyang in Hubei, for employee welfare, with a total procurementamount of approximately CNY420,000.
Sichuan Changhong Real Estate paired up to assist Huazui Village in Pingwu County, providingcontinuous support to two impoverished left-behind children in the village through charitabledonations. It purchased CNY140,000worth of local agricultural products and helped providesales venues for these products.
Changhong Meiling actively responded to the rural revitalization plan and invested inindustrial assistance, purchasing 20tons of high-quality kiwifruit from rural areas through a"purchase instead of assistance" approach.
Sichuan Changhong NeoNet Technologies participated in a charity activity in Hebei Province,China, purchasing CNY 12,000worth of agricultural products. It distributed CNY30,000worth of supplies to the assisted village, collaborated with sowing institutions to introducehigh-quality potato varieties and green planting techniques, and held agricultural technologytraining sessions to improve agricultural production levels.
Sichuan Changhong Precision Electronics Technology spent CNY95,000on purchasingagricultural products from Pingwu County, Mianyang City; during the Mid-Autumn Festival, itpurchased CNY112,000worth of plateau yak meat sets as the gifts for frontline sta?; it alsopurchased CNY26,800worth of tea from Pingwu County for a "Summer Coolness" campaignduring high temperatures.Sichuan Changhong Component Technology purchased CNY395,300worth of designatedassisted agricultural products through a "purchase instead of donation" approach throughoutthe year.
Sichuan Changhong ESG Report
Advancing Responsibility for Social Well-being
Contributing?to?Social?DevelopmentThe Group upholds its original aspiration in practicing social welfare, delivering tangible care and hope todisadvantaged groups and regions in need. It deepens community co-development initiatives, collaboratingwith neighboring communities to foster harmonious coexistence. Under the Belt and Road Initiative, theCompany expands global partnerships, promotes Chinese brand excellence, and demonstrates comprehensivecorporate responsibility, injecting Changhong's vitality into social development.
In 2024, the Company and its subsidiaries deeply implemented the development concept of "mutual growthbetween enterprise and society", actively engaging in various social welfare initiatives. By carrying outcharitable donations, actively participating in voluntary blood donation, and engaging in education-focusedpoverty alleviation initiatives, the Company embodies its commitment to corporate social responsibility.
?Devoting?to?Social?Welfare
Changhong Air Conditioner responded positively to national poverty alleviation policies by donating 50 airconditioners to Ningnan Middle School in Pisha Town, Ningnan County, Liangshan Prefecture, Sichuan Province,
improving the learning and living conditions for local students.
Sichuan Changhong NeoNet Technologies organizedvolunteers to deliver supplies to assisted families on an
irregular basis.
The Company and its subsidiaries actively organized employees to participate in voluntary blood donation activities.
Changhong Kuaiyidian organized its employees to participate in the "Cool Breeze, Happy Growth" public welfareactivity. They sent condolences to the Mianyang Children's Welfare Institute and provided free maintenance and
cleaning services for the home appliances in the institute
Guangdong Changhong Electronics, having beenrooted in Nantou Town, Zhongshan City for over
years, directly provided more than3,000job positionsand encouraged investment from upstream anddownstream supply chain enterprises, promotinglocal economic development. And it has sponsoredcommunity public welfare and mass sports activitiesfor many consecutive years.
Sichuan Changhong Package &Printing reached a productioncooperation agreement withXinglonggou Village in FengguTown, Mianyang City, helpingincrease income for surplus rurallabor by nearly CNY300,000.
Guangdong?Changhong?Electronics
Sichuan?Changhong?
Packing?&?Printing
Sichuan Changhong ESG ReportAdvancing Responsibility for Social Well-being
In Nantou Town, Zhongshan Changhong Electric has been conducting the "Aging Support Initiative" for the sixthconsecutive year. This initiative delivers comfort and blessings to elderly individuals in need within the community,ensuring they feel cared for by society, and continuously enhancing their sense of happiness and ful?llment.
contributed a total of CNY 35,000 to community welfare. This included a CNY 20,000donationto the Nantou Charity Association to support the Five-Man Boat Race and a CNY 15,000donationto the Zhongshan Red Cross Society in response to the Zhongshan Charity Parade PromotionRegulations.
Zhongshan?Changhong?Electric
donated CNY 80,000to the Chengdu Research Institute of University of Electronic Science andTechnology of China, specifically for the selection competition of the 15th Beidou Cup NationalYouth Aerospace Technology Experience and Innovation Contest.
081?Electronics?Group
The company proactively collaborates with communities to establish a multi-stakeholder partnership model,dedicated to creating a harmonious, mutually supportive, and developmental community ecosystem,contributing to the enhancement of residents' quality of life and promoting community prosperity.
Participating?in?Community?Co-Building
Changhong Hongxin, in collaboration with Jitai Community in Chengdu High - tech Zone, jointly launched the"Volunteer E?orts in Spring Plowing: Adding Greenery to Vacant Lands" voluntary planting activity.
The Group adheres to the path of international development, actively responding to the national "Belt andRoad" initiative. It strives to expand economic cooperation with international partners, jointly promotinga community of shared interests and responsibilities characterized by economic win-win outcomes,green development, and low carbon practices. Today, the Group has evolved into a global comprehensivetechnology enterprise integrating consumer electronics and core component research and manufacturing.With 11 R&D bases and 17 manufacturing bases established worldwide, its products and services are presentin over 160 countries and regions, serving more than 200 million users. Together with international partners,the Company promotes the orderly and free ?ow of cross-regional economic factors, e?cient allocation ofresources, and deep integration of markets.The Group has formulated a detailed overseas business development plan, clarifying market expansiondirections. In 2024, it achieved export revenue exceeding CNY 25 billion. By establishing extensive cooperativerelationships with government agencies, industry associations, and enterprises in countries along the Beltand Road, the Company has gradually opened up overseas markets. Through the strategies of "expandingmarkets, strengthening channels, optimizing products, and enhancing capabilities", overseas subsidiarieshave significantly improved sales performance, effectively promoting rapid brand growth. In Europe, bothonline and o?ine businesses have achieved historic pro?tability.
Advancing?Global?Responsibility
the trade volume of the Group's international brand business reached CNY billion,with overseas tax payments amounting to nearly CNY million.
2.383
In 2024：
Sichuan Changhong ESG ReportAdvancing Responsibility for Social Well-being
The Group actively promotes a localization strategy for talent in overseas operations, hiring a large numberof local employees, particularly providing job opportunities for frontline sales personnel and productionworkers. This year, the Group provided more than 800 job opportunities locally, creating a signi?cant numberof employment opportunities for local communities.
In theEuropeanmarket
In theIndonesianmarket
the Group's international business team focused on "online driving o?ine, B2C drivingB2B", concentrating resources to drive channel development. Annual sales revenuereached CNY
million, a year-on-year increase of
%.
the Company covered
% of traditional channels, with annual sales exceeding CNY
million, a year-on-year increase of
%.
InAustralia
Tax?ManagementThe Company strictly complies with laws and regulations such as the “Tax Collection Administration Lawof the People's Republic of China”, the “Enterprise Income Tax Law of the People's Republic of China”,and the “Provisional Regulations on Value-Added Tax of the People's Republic of China”. Through theformulation of internal management measures, the Company ensures the effective implementation ofinternal control processes. The Company's tax management function is under the financial managementdepartment, directly overseen by the Chief Financial Officer. Dedicated tax personnel are assigned atall levels of subsidiaries, and a reporting mechanism for significant matters has been established, withprofessional support provided by the financial management department.The Company interprets tax policies in compliance with regulations and ensures their implementation.In applying tax incentives, it establishes corresponding guidelines to cover all tax-related activities,and optimizes tax management processes to mitigate tax risks. Regarding changes in tax policies, theCompany actively communicates with tax authorities to avoid misunderstandings, assesses the impacton business operations and taxes in advance, organizes seamless policy transitions, and provides tax-informed decision support for business development.Regular training sessions are conducted through material presentations and case studies to furtherpromote tax-related legal requirements. After training, Q&A sessions, consultations, and exchanges areorganized to reinforce learning outcomes.The Company establishes a risk management mechanism following the PDCA cycle to form a closed-loop forrisk management. It comprehensively evaluates and identi?es key tax management points for new businesses,establishes mechanisms to prevent tax risks in advance, and uses data analysis and feedback channels toidentify key tax risk areas. A checklist of tax risk management items is created, and regular self-inspections areconducted. The Company leverages AI and online spreadsheet technologies to enable intelligent analysis ofdeclaration indicators, con?gure calculation logic, and build a tax data management and declaration system.
comprehensive cooperation was achieved with the three largest nationwide chainchannels, generating annual sales revenue exceeding CNY
million, a year-on-yearincrease of 46%. A multi-dimensional channel system has been basically established.
It continuously enhances its capabilities for calculating all types of taxes and direct electronic filing. TheCompany engages external professional accounting ?rms for annual ?nancial report audits, while the internalaudit department conducts internal audits, and the compliance department performs compliance checks.A recti?cation mechanism is established for identi?ed tax issues to further strengthen tax risk prevention. Itsets up whistleblower mailboxes to maintain records of reported tax issues, implements corrective actions forveri?ed problems, and conducts follow-up reviews to ensure the e?ectiveness of recti?cations.The Company maintains routine communication with tax authorities and receives their policy guidance.Tax authorities regularly evaluate and inspect key business segments of the Company. During the reportingperiod, the Company underwent a "dual random" inspection by tax authorities, enhancing corporate taxcompliance. The Company also actively participates in related activities organized by tax authorities, such asthe Sichuan-Chongqing "Tax Express" government-enterprise exchange event, where it shared cross-bordertax experiences as an "going global" enterprise.During the reporting period
the Company was rated as an A-level taxpayer. Within the Group, % of entities were ratedA-level taxpayers (excluding M-level), with no C-level or D-level entities.
67.3
The total amount of all taxes and fees paid by the Group to tax authorities in 2024 totalledover CNY billion.
2.3
Ensuring?Information?SecuritySichuan Changhong has established a robust information security management system, implementingmeticulous control throughout the entire process from setting data access permissions to network securityprotection. The Company places great emphasis on customer privacy protection. It has formulated strictprivacy policies that clearly de?ne the rules for information collection and usage. By employing encryptiontechnologies and other methods, it ensures comprehensive protection of customer privacy and security.
The Group adheres to laws and regulations such as the “Cybersecurity Law of the People's Republic ofChina”, the “Data Security Law of the People's Republic of China”, and the “Personal InformationProtection Law of the People's Republic of China”. It has established an information security managementsystem characterized by "one center, three major systems, and three layers of protection", which supportsinformation security management and aids in the Company's digital transformation. In 2024, the Companysuccessfully passed the re-audit for the ISO 27001 Information Security Management System, with severalkey business systems obtaining Level 3 certification for classified protection. This achievement ensurescompliance with safety management requirements and maintains control over security risks. No informationsecurity risk incidents occurred during the reporting period.
Information?Security?Management
Sichuan Changhong ESG ReportAdvancing Responsibility for Social Well-being
Improve the in-depth defense system for information security, implement classified andtiered management of industrial data, strengthen the protection of user information andprivacy, continuously enhance information security management, fully ensure the securityof business data, and effectively support the Company's digital transformation and theimprovement of smart manufacturing capabilities.Secondly, promote cybersecurity certi?cation work through measures such as cybersecuritytiered protection certi?cation, cybersecurity product certi?cation, and cybersecurity talentcerti?cation.Thirdly, regularly conduct cybersecurity education and training, develop an informationsecurity training plan covering all employees, regularly organize diverse training activitieson information security and privacy protection, and periodically carry out cybersecurityemergency drills to continuously improve the information security awareness of allemployees.
The Group always prioritizes user information security and privacy protection, having established policies suchas the “Cybersecurity and User Privacy Protection Management Measures”, “User Information SecurityManagement Measures”, and “Service Information System Data Security Management Measures”. Thesepolicies strictly regulate all aspects of user information handling, including collection, storage, usage, andtransmission. The Company employs data encryption technology, identity authentication and authorization,network transmission security protocols, secure data storage, server ?rewalls, security strategies, and accesscontrol technologies to build a comprehensive user information security protection system. This ensures thatuser information processing is legal, compliant, and secure.In accordance with national laws and local policy requirements, Changhong's Smart TV Yunfan large modeland the Honglingjin system have timely updated and released the Changhong User Privacy Policy. This policyprovides users with detailed explanations regarding the purpose, scope, methods, and protective measuresfor information collection, covering all stages from personal information collection to usage and protection.It ensures that users are fully aware of their rights and obligations, thereby safeguarding their right to beinformed. Additionally, taking into account the special nature of children users, these platforms have alsopublished the Changhong Children's Personal Information Protection Rules and Guardian Guide, establishinga strict supervision and management mechanism to comprehensively protect children's personal informationsecurity. In 2024, no user information leakage incidents occurred.
User?Privacy?Protection
Responsible?MarketingSichuan Changhong adheres to the principles of responsible marketing, upholding integrity as its guidingprinciple and maintaining ethical standards to ensure that the information conveyed to consumers istruthful and accurate. The Company strengthens the management of marketing activities. From planning toexecution, it has established a comprehensive control system to rigorously oversee the content and formatof its promotions. This approach injects positive energy into the market, helping to build an outstandingbrand image characterized by professionalism and responsibility, thus earning the trust and recognition ofconsumers.
The Group strictly complies with laws and regulations such as the “Law of the People's Republic of China onthe Protection of Consumer Rights and Interests”, the “Advertising Law of the People's Republic of China”,and the “Anti-Unfair Competition Law of the People's Republic of China”, as well as industry standards. Touphold integrity in brand image, it has established various management systems for brand promotion andmedia communication, including the “Management Norms for News Release and Communication”, the“Self-Operated New Media Management Measures”, the “Management Norms for Online Image Carriers”,the “External Communication Boundaries List”, and the “Management Measures for Spokespersons”. Inall marketing and promotional activities, rigorous reviews are conducted to prevent any exaggeration, false ormisleading statements, ensuring adherence to principles of responsible marketing.
Eliminating?False?Advertising
Brand?Building?and?Publicity?Management
The Group has established a comprehensive plan for Changhong brand building, shaping a new image ofTech Changhong from both corporate and product brand perspectives. The brand image construction systemis centered around the "Corporate Philosophy System + Behavioral Identification System + Visual IdentitySystem + Product Terminal Image Recognition System". To further standardize brand management, theCompany has set up the "Brand and Quality Management Committee", responsible for strategic planning andoversight of brand value management, brand licensing, brand promotion, and brand marketing.
Strengthening?the?Brand?Management?System
The Group focuses on security management, security certification, and security education to continuouslyenhance network and data security protection levels. Firstly, the Group establishes an information securitysystem, progressively reinforce cybersecurity responsibilities at all levels, and implement the requirements ofthe cybersecurity tiered protection system.
Sichuan Changhong ESG ReportAdvancing Responsibility for Social Well-being
Centered on the theme of "Technology Creates a Better Life", the Group focuses on digital transformation,integrating Changhong's corporate image into the promotional content related to Science and TechnologyCity of China, the Chengdu-Chongqing Economic Circle, and China's electronic information industry.Through various initiatives such as physical-digital integration, intelligent manufacturing upgrades, andIoT empowerment, the Company aims to showcase Changhong's new development dynamics to diverseaudiences. CCTV's "Focus Report" program has featured Changhong's digital-physical integration, overseasexpansion, trade-in services, and AI appliances three times, contributing to a positive image of Changhong'sdigital transformation. Additionally, the Company enhances o?cial communication by releasing brand eventsand product promotions in key overseas regions and the U.S.In 2024, adhering to compliant marketing, the Group enriched publicity content and broadened reportingdepth through new media layouts, new scenario marketing, new technology applications, and trainingfor marketing personnel, ensuring that transparent and truthful product information is communicated tousers. By signing with the FIS World Cup Events, the Company injects elements like "passion", "purity", and"internationalization" into the brand. It also explores domestic cultural IP applications based on localizedresources and product characteristics, utilizing regional sports marketing to penetrate core overseasmarkets and gain high exposure in international competitions at multiple levels and regions, promoting theinternationalization of brand building. According to the latest release by the World Brand Lab in 2024, thebrand value of Changhong has reached CNY
236.876
billion, setting a new record high.
?Boosting?Corporate?Brand?Image
The Company continuously improves its self-media matrix, tailoring content to di?erent audiences and deeplyexploring distinctive Changhong stories. Throughout the reporting period, over 3,000 articles and images asStrengthening?Promotional?Momentum
The Company participated in the "MianyangCulture Roadshows", visiting cities such asXiamen, Chongqing, and Kunming to showcaseChanghong's latest technological advancementsto local residents. Additionally, by leveraging theconstruction of provincial intelligent transformationexhibition hall, the Company participated in variousexhibitions and expos open to the public, includingthe High-Tech Expo, Cultural Industries Fair, andsmart manufacturing summits. Through theseevents, the Group has demonstrated its innovativecapabilities in cross-industry internet platform,intelligent manufacturing upgrades, artificialintelligence, and digital products, thereby reshapingthe public's perception of the Changhong brandimage.
Under?the?theme?of?"Tech?ChanghongServing?the?Country?Through?Industrial?Development"
The Company also improvedits brand publicity efforts byorganizing over 15,000 visitsfrom government delegationsat national, provincial, andmunicipal levels, customers,investors, universities,external organizations, andinternational guests. Visitorstoured Changhong's innovationexhibition hall, intelligentproduction lines, and parks,experiencing firsthand thenew developments andtransformations of Changhong.
With?the?theme?"Approaching?Changhong"
well as more than 850 short videos were published, achieving total views exceeding 100 million. This e?ort hase?ectively enhanced the brand's in?uence in key regions. To enhance online visibility and tra?c acquisition,the Company establishes brand zones on Baidu and Toutiao, providing quick access to talent recruitment,customer business services, after-sales services, product navigation, and investment consultations.
Sichuan Changhong ESG ReportAdvancing Responsibility for Social Well-being
On the path of high-quality development, we will persist in shifting our focus from scaleexpansion to e?ciency enhancement. We will continue to deepen the optimization of ourindustrial structure, accelerate the phasing out of outdated production capacities, andpromote the comprehensive upgrade of our products toward intelligence, environmentalfriendliness, and premium quality. We will actively respond to the national policyadvocating "replacement of old appliances with new ones", leveraging it as a vital meansto drive both industrial and consumption upgrades. Guided by a "globalization" strategy,we aim to further expand into international markets by innovating marketing models,enhancing product quality and service levels, strengthening brand development, andincreasing the global recognition and reputation of the Changhong brand to achieveleapfrog growth in our brand business.We will continuously increase R&D investment and be a committed practitioner ofthe "first-launch economy". Focusing on frontier technologies such as AI, the IoT, andbig data, we will strive to build a more competitive smart home ecosystem. Throughtechnological innovation, we aim to effectively address consumer pain points, trulyintegrate smart products into daily life, and create a more convenient, comfortable, andhealthy lifestyle for customers. At the same time, we will adhere to a strategy of talentempowerment, strengthen talent team development, and fully unleash human potentialto provide a solid foundation for the Company's innovation and growth.
We will clearly uphold and promote a positive corporate culture, establishing a spirit ofsincere unity, strong execution, and integrity, thereby fostering a work ethic that supportsour development initiatives. We will continue to strengthen ideological guidancefor employees, safeguard their rights and interests, and enhance their sense of gain,happiness, and security. Through various training and skills competition activities, we willsupport talent cultivation in the workplace and build a broad development platform foremployees.Upholding the mission of "Technology Creates a Better Life", we will embed ESG conceptsthroughout the entire process of business operation and development. We are committedto joining hands with all employees, customers, shareholders, partners, and all sectorsof society to face challenges and seize opportunities together, striving for a brightfuture of sustainable development. We firmly believe that, with the concerted effortsof all Changhong people and the strong support of the community, Changhong willundoubtedly realize its grand goal of becoming a world-class enterprise and make evengreater contributions to national economic development and social progress!
Outlook
Outlook
Sichuan Changhong ESG Report
Sichuan Changhong ESG Report
Appendix
147.53
635.12
42,720.93136,786.001,072.561,443.88
226.87
19,482.4378,868.67
1.654
------675,852.05
144.89
548.81
44,163.69125,233.80
0.00
1,588.27
600.38
21,861.8481,424.86
1.497
12,170,084.11
2.24
----831,388.16
144.33
541.93
54,969.58119，222.50
0.00
1,817.02
824.00
25,179.01
97,806.51
1.496
14,292,610.12
2.19
4,343.82
0.07
126,932.97
1.94
2,248,802,03
1,000,000 kJ10,000 kWh
t standard coal
t standard coal
ton
tonton
ton
ton
ton
t/CNY 10,000
t/CNY 1,000,000
t/CNY 1,000,000
10,000 m?
t standard coal
10,000 kWh
Petrol
Total material used
Diesel oil
Natural gasSolar (photovoltaic)
Total water withdrawal
Purchased electricityHeat (steam)
Water consumptionintensityTotal hazardouswaste generated
Fuel converted from wasteoil and other fossil fuels
Comprehensive ener-gy consumption/CNY1,000,000 output value
Hazardous waste gen-erated per CNY 10,000output valueTotal general solidwaste generatedGeneral solid wastegenerated/CNY 10,000output value
Total comprehensiveenergy consumption
IndicatorUnit202220232024
IndicatorUnit202220232024
IndicatorUnit202220232024
Appendix
?Key?Performance
Environmental Performance47,097.219,286.76
22,68233,292.22175,064.44208,356.66
43.77
41,129
23,404
17,725
5,964
11,503
13,289
6,653
personpersonpersonpersonpersonpersonperson
70,728.224,335.66
1,05425,14233,649.31201,351.39235,000.70
43.21
45,44326,14219,3018,51512,33214,2916,713
100,418.02
6,057.63
1,10927,84843,190.73216,907.31260,098.03
39.77
45,37625,93419,4429,64812,29213,9936,205
CNY 10,000sessionperson-time
ton
t CO
et CO
et CO
et/CNY 10,000 out-put value
Packaging materials used
Total number of employeesMale employeesFemale employeesEmployees aged 29 and belowEmployees aged 30–39Employees aged 40-49Employees aged 50-54
Direct greenhousegas emissionsIndirect greenhouse gasemissions from purchasedenergy [Note]
Environmental pro-tection investmentEnvironmental pro-tection trainingEnvironmental protectiontraining participation
Greenhouse gasemission intensityTotal emissions (direct+ indirect)
Social Performance
t standard coal/CNY1,000,000 output value
Environmental Performance
Clean energy con-sumption
Sichuan Changhong ESG Report
Appendix
3,72040,453
15.64
95.76
1,338
1,226258,264.37
2.79
99.00
----
personpersonperson%%%%itemitemitemCNY 10,000
%%%supplier%%%
3,59244,807
15.66
96.61
1,268249,048.16
2.56
99.20
5,792
99.83
63.51
66.83
3,23844,1941,182
14.24
97.46
1,322260,148.57
2.51
99.11
6,854
99.42
63.72
57.79
Proportion of R&D invest-ment in operating revenue
Percentage of domestic sup-plier purchase amount to totalsupplier purchase amount
Domestic supplier per-centageLocalized domesticsupplier percentage
Total number of suppliers
sessionsessionsessionpersonpersonpersonperson
Governance Performance
IndicatorUnit202220232024IndicatorUnit202220232024
Social Performance
Employees aged 55 andabove
General Meeting ofShareholdersBoard of Directors meetings
Board members
Independent directorsFemale directors
Non-independent directors
Board of SupervisorsmeetingsThe number of ChineseemployeesThe number of foreignemployeesSocial insurancecoverage rateProportion of femalemanagersLocalization rate ofoverseas employees
Labor contract signing rate
Patents grantedInvention patents grantedNew patent applicationsR&D investment
Customer satisfaction rateComplaint resolution rate
Sichuan Changhong ESG Report
Appendix
Content?Index?IContent?Index?IIContent Index of the Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE -
Compilation of Sustainable Development Reports
GRI Content Index
Climate Change ResponsePollutant EmissionsWaste DisposalEcosystem and Biodiversity ConservationEnvironmental Compliance ManagementEnergy UtilizationWater Resources UtilizationCircular EconomyRural RevitalizationSocial ContributionsInnovation-driven DevelopmentTechnology EthicsSupply Chain SafetyEqual Treatment of SMEsProduct and Service Safety and QualityData Security and Customer Privacy ProtectionEmployeesDue DiligenceStakeholder CommunicationAnti-Commercial Bribery and Anti-CorruptionAnti-Unfair Competition
2-1 Organizational pro?le2-2 Entities included in the organization's sustainability reporting2-3 Reporting period, frequency, and contact point2-4 Restatements of information2-6 Activities, value chain, and other business relationships2-7 Employees2-9 Governance structure and composition2-11 Chair of the highest governance body
2-13 Delegation of responsibility for managing impacts2-14 Role of the highest governance body in sustainability reporting2-15 Con?icts of interest2-16 Communication of key issues2-17 Collective knowledge of the highest governance body2-19 Remuneration policies2-20 Process to determine remuneration2-22 Statement on sustainable development strategy2-23 Policy commitments2-24 Embedding policy commitments2-26 Mechanisms for seeking advice and raising concerns2-27 Compliance with laws and regulations
P50-57P66-69P69-72P80P44-49P59-63P64-65P78-79P127-131P132-136P104-114P114P58P127P114-119P137-138P84-98P19P19P33-35
P36
P08-11
P05P04-05
P57
P125P84-98P14-15
P26
P15P26-27
P15P36-39
P19
P26
P28
P28P06-07
P07
P15
P19P29-32
Dimension
GRI?StandardS/NTopicChinese?VersionLocation?in?Report
Location?and?Explanation
Environ-ment
GRI 2:
GeneralDisclo-sures2021Society
Sustain-abilityGovern-ance
2-12 Role of the highest governance body in overseeing the manage-ment of impacts
Sichuan Changhong ESG Report
Appendix
2-29 Approach to stakeholder engagement2-30 Collective bargaining agreements3-1 Process to determine material topics3-2 List of material topics3-3 Management of material topics201-1 Direct economic value generated and distributed
201-3 De?ned bene?t plan obligations and other retirement plans203-1 Infrastructure investments and services supported203-2 Signi?cant indirect economic impacts205-1 Operations assessed for risks related to corruption
205-3 Con?rmed incidents of corruption and actions taken
207-1 Approach to tax207-2 Tax governance, control, and risk management301-1 Materials used by weight or volume301-2 Recycled input materials used301-3 Reclaimed products and their packaging materials302-1 Energy consumption within the organization302-2 Energy consumption outside of the organization
302-3 Energy intensity302-4 Reduction of energy consumption302-5 Reductions in energy requirements of products and services303-1 Interactions with water as a shared resource303-2 Management of water discharge-related impacts303-3 Water withdrawal303-4 Water discharge303-5 Water consumption
305-1 Direct (Scope 1) GHG emissions305-2 Indirect (Scope 2) GHG emissions305-4 GHG emissions intensity306-1 Waste generation and signi?cant waste-related impacts306-2 Management of signi?cant waste-related impacts306-3 Waste generated306-4 Waste diverted from disposal306-5 Waste directed to disposal
P19P88P16P17P16-18
P13P52-54
P88P132-136P132-136
P33-34
P35P34-35
P136
P136
P78
P78
P78
P63
P63
P63P60-62
P63P64-65P64-65
P64P66-67
P65
P80
P57
P57
P57P69-71P69-71
P72
P70
P70
GRI 2: Gen-eral Disclo-sures 2021
GRI 203:
IndirectEconom-ic Impacts2016
GRI 304:
Biodiver-sity 2016
GRI 305:
Emissions2016
GRI 306:
Waste2020
GRI 308:
Supplier En-vironmentalAssessment2016
2016GRI 206:
UnfairCompeti-tion 2016GRI 207:
Tax 2019GRI 301:
Materials2016GRI 302:
Energy2016
GRI 302:
Energy2016
304-1 Operational sites owned, leased, managed in, or adjacentto, protected areas and areas of high biodiversity value outsideprotected areas304-2 Signi?cant impacts of activities, products, and services onbiodiversity
308-1 New suppliers that were screened using environ-mental criteria
P36
P80
P58
GRI 3:
MaterialTopics2021GRI 201:
Econom-ic Perfor-mance2016
GRI 303:
Water andE?uents2018
GRI 205:
Anti-Cor-ruption2016
GRI Content IndexGRI Content IndexGRI?Standard
GRI?StandardChinese?VersionChinese?Version
Location?and?Explanation
Location?and?Explanation
201-2 Financial impacts and other risks and opportunities due to cli-mate change
205-2 Communication and training about anti-corruption policies andprocedures
206-1 Legal actions for unfair competition, anti-trust, and anti-monop-oly practices
Sichuan Changhong ESG Report
Appendix
P88P98P99P98P98P98P20P96-97GRI 405: Di-versity andEqual Op-portunity2016GRI 413:
Local Com-munities2016GRI 414:
Supplier So-cial Assess-ment 2016
GRI 417:
Marketingand Labe-ling 2016
GRI 416:
CustomerHealth andSafety 2016
GRI 403:
Occu-pation-al Healthand Safety2018
405-1 Diversity of governance bodies and employees413-1 Operations with local community engagement, impactassessments, and development programs414-1 New suppliers that were screened using social criteria416-1 Assessment of the health and safety impacts of productand service categories417-1 Requirements for product and service information and labeling
P84
P132-135
P122P115
P139-140
GRI Content IndexGRI?Standard
Chinese?Version
Location?and?Explanation
401-2 Bene?ts provided to full-time employees (excludingtemporary or part-time employees)
403-8 Workers covered by an occupational health and safe-ty management system404-2 Programs for upgrading employee skills and transi-tion assistance programs
403-2 Hazard identi?cation, risk assessment, and incidentinvestigation403-1 Occupational health and safety management system
403-6 Promotion of worker health
403-3 Occupational health services403-5 Worker training on occupational health and safety
?Suggestions?and?FeedbackDear?Readers:
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Address: No. 35 Mianxing East Road, High-tech Zone, Mianyang, Sichuan, ChinaPostal Code: 621101Phone: 0816-2418436Email: 600839@changhong.comMultiple?Choice?Questions?(Please?mark"√?"in?the?appropriate?position)
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