Address: No. 2198, East Section of Development Avenue,Jiaojiang District, Taizhou City, Zhejiang ProvinceTel:0576-8981-1901Email: sjzqb@crystal-optech.com
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.
ENVIRONMENTAL, SOCIAL ANDGOVERNANCE REPORT 2025
CONTENTS
AboutCstal-Optech
ForewordAbout This RepoChairman’s Speech
Company Prole2025 Annual Highlightsand Peormance
ESG Goals and VisionESG GovernanceStakeholder EngagementMateriality Issue Management
AppendixLookingAhead
Index of IndicatorsFeedback Form
Environmental, Social andGovernance Management
Gathering Strength forPublic Welfare, BenetingPeople’s Livelihood
Rural RevitalizationPublic Welfare
Technology Empowerment,Value Co-Creation
Innovation-DrivenSupply Chain ManagementProduct and Seice Safety and QualityData Security and Privacy Protection
Occupational Health and SafetyProtecting the Legitimate Rights andInterests of EmployeesEmployee Training and Development
People-Oriented, Unitingfor Common Progress
Standardized Governanceand Steady Operation
Standardizing Corporate GovernanceProtecting Investor RightsPracticing Business Ethics
Addressing Climate ChangeEnvironmental Compliance ManagementResource Management
Low-Carbon Actions,Green Development
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Foreword
0102
Foreword
Repo Oveiew
Repo Scope
This repo is the second Environmental, Social and Governance (ESG) repo issued by Zhejiang Cstal-Optech Co., Ltd. Adheringto the principles of objectivity, standardization, transparency, and comprehensiveness, this repo provides a detailed oveiew ofthe management strategies, practices, and peormance of Zhejiang Cstal-Optech Co., Ltd. and its holding subsidiaries in the envi-ronmental, social, and governance domains during the 2025 period.
Time Scope: This repo covers the period from Janua 1, 2025 to December 31, 2025. Some statements and data are appropriatelytraced back and extended to improve the comparability and completeness of the repo.Organizational Scope: This repo covers Zhejiang Cstal-Optech Co., Ltd. and its holding subsidiaries. Unless otherwise specied,the scope of this repo is consistent with that of the Company’s annual repo.
Basis for PreparationSelf-Regulato Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 1 — Standardized Operation of Main BoardListed CompaniesSelf-Regulato Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 17 — Sustainability Repo (Trial)GRI Sustainability Repoing Standards(GRI Standards) issued by the Global Repoing Initiative (GRI)China Enterprise Sustainability Repoing Guidelines(CASS-ESG 6.0) issued by the China Enterprise Reform and Development SocietyRecommendations of the Task Force on Climate-related Financial Disclosures (TCFD)United Nations Sustainable Development Goals (SDGs)Sustainability Accounting Standards Board (SASB) Standards
Data Sources
The nancial data in this repo is derived from the 2025 Annual Repo of Zhejiang Cstal-Optech Co., Ltd. Other information anddata are sourced from statistical summaries compiled by relevant internal depaments or from publicly available Company docu-ments. The content of this repo contains no false records, misleading statements, or material omissions. Unless otherwise speci-ed, all moneta amounts in this repo are denominated in yuan.
Repo Access and Feedback
This repo is published in both Chinese and English. In case of any ambiguity or conict between the two versions, the Chinese ver-sion shall prevail. You can access and download the electronic version of the repo on the ocial website of the Shenzhen StockExchange (http://www.szse.cn/), CNINFO (http://www.cninfo.com.cn/), the ocial website of Zhejiang Cstal-Optech Co., Ltd.(https://www.cstal-optech.com/), and the Company’s ocial WeChat account.If you have any comments or suggestions on this repo, please contact us through the following channels:
Address: No. 2198, East Section of Kaifa Avenue, Jiaojiang District, Taizhou City, Zhejiang ProvincePostcode: 318014Tel: 0576-89811901Email: sjzqb@cstal-optech.com
Denition of Terms
For the convenience of presentation and reading, the terms in this repo are dened as follows:
Repoing CycleThis repo is an annual Environmental, Social and Governance repo, released once a year.
TermDenition
Crystal-Optech, the Company, or we
YeshiliJiangxi Crystal-OptechLinhai Crystal-Optech, XintaijiaVietnam Crystal-Optech
COTC
COTVCOT VietnamJiangxi JingchuangJingte Optics
Zhejiang Crystal-Optech Co., Ltd.Yeshili New Materials Co., Ltd.Jiangxi Crystal-Optech Co., Ltd.Xintaijia Optoelectronics Co., Ltd.Crystal-Optech Vietnam Co., Ltd.COTC HOLDING PRIVATE LIMITEDCOTV HOLDING PRIVATE LIMITEDCOT VIETNAM CO.,LTD.Jiangxi Jingchuang Technology Co., Ltd.Jingte Optics Technology Co., Ltd.
About This Repo
Chairman’s Speech
0304
Dear shareholders, investors, paners and friends from all sectors of society:
Hello eveone!The year 2025 marked the decisive nal year for concluding the 14th Five-Year Plan. Guided by our strategic focus and the opera-tional policy of “Persisting in ‘Two Reductions and Three Lowerings,’ Implementing Site Management, Building a Dual CirculationSystem, and Leveraging Momentum for Fuher Growth!”, Cstal-Optech maintained steady business operations, continuouslystrengthened its core competitiveness, and once again achieved high-quality development. We remain committed to deeply inte-grating ESG principles into our corporate development strategy, actively assuming responsibilities towards our shareholders, em-ployees, the environment, and society while pursuing economic benets, and striving to create long-term, shared value.Over the past year, we continuously improved corporate governance to solidify the foundation for transparent operations. The Com-
pany strictly adheres to the principles of lawful and compliant operations, consistently strengthening its compliance risk manage-ment and internal control systems. We regularly conduct evaluations of internal control eectiveness to enhance governance e-ciency. We value communication and interaction with investors, actively exploring new technologies in investor relations manage-ment. We introduced AI technology, integrating a digital human intelligent response function on our ocial WeChat account toimprove interactive eciency. We strengthened anti-corruption and integrity awareness among all employees, having all sta signan Integrity and Self-Discipline Commitment Letter, providing anti-corruption training, conducting audits on business ethics-relatedcontent, and encouraging both internal and external stakeholders to jointly foster an honest and fair business environment.
Over the past year, we rmly advanced our green transformation and fullled our commitment to low-carbon development. Guided
by principles of green, economic, and intelligent operations, we enhanced the ecient use of resources, leading the industtowards a green and low-carbon future. We continuously promoted water conseation projects, including the recycling of dicingand cutting water, reuse of ultra-concentrated water, constant-ow water-saving retrotting of cleaning machines, and reuse oftreated wastewater from treatment stations in cooling towers. We advanced energy-saving projects such as cold energy recoveand waste heat recove from air compressors. We implemented a digital management system, “Sma Facility Management,” eec-tively improving resource utilization eciency and reducing energy consumption. The Company actively engaged in climate action,reducing carbon emissions through measures such as purchasing and utilizing green electricity, installing photovoltaic systems,optimizing production processes, and deploying energy storage equipment.Over the past year, we strengthened innovation and talent development, building a robust engine for long-term growth. The Com-
pany continued to increase R&D investment, reinforcing our innovation foundation through Integrated Product Development (IPD)management methods, the construction of multiple R&D platforms, and talent cultivation. We deepened indust-university-re-search collaboration, formally initiating a school-enterprise panership with Shaanxi University of Science and Technology to jointlyexplore new paradigms for integrating indust and education. Adhering to a people-oriented approach, we continuously improvedour welfare security system, peected career development paths, and safeguarded the legitimate rights and interests of employees.We established a “Business School” training platform and assembled a team of external lecturers, providing employees with abun-dant training resources and personalized learning suppo, enabling eve member of the Cstal-Optech family to grow andachieve their dreams alongside the Company.
Over the past year, we actively fullled our social responsibilities and dedicated ourselves to giving back to society. The Companyactively engaged in public welfare initiatives, spreading positive energy. In the new stage of consolidating povey alleviationachievements and comprehensively promoting rural revitalization, the Company integrated resources, innovated suppo models,and comprehensively carried out initiatives in consumption suppo, educational suppo, and employment suppo. We earnestlyfullled our corporate citizenship responsibilities, ensuring that the benets of development reach wider areas and more people.Looking ahead, Cstal-Optech will steadfastly uphold its original aspiration and mission, “Innovation makes optics more poweul,optics makes the world a better place.” With a broader vision, greater resilience, and a more open attitude, we will embrace change,deepen our focus on our core business, strengthen innovation-driven development, and deepen our ESG practices. We will joinhands with all stakeholders to collectively address challenges, seize the oppounities of our times, and unwaveringly pursue thepath of high-quality and sustainable development, contributing to the prosperity of society.Finally, we would like to express our sincere gratitude to our shareholders, investors, paners, and friends from all walks of life fortheir continued interest in and suppo for Cstal-Optech.
Li Xiayun, Chairman of Cstal-Optech
Chairman’s Speech
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Company Pro?le???? Annual Highlights and Performance
About Cstal-Optech
0506
About Cstal-Optech
0708
Company IntroductionZhejiang Cstal-Optech Co., Ltd. was founded in August 2002, with its headquaers in Taizhou, Zhejiang Province. It was listed onthe Shenzhen Stock Exchange in September 2008 (Stock Abbreviation: Cstal-Optech; Stock Code: 002273).The Company specializes in the R&D, production, and sales of products related to optical imaging, thin-lm optical panels, automo-tive electronics (AR+), and reective materials. Our products are widely used in consumer electronics, automotive optics, and AR/VRelds. For over two decades, the Company has remained dedicated to innovation within the optical indust, striving to become aworld-class premier one-stop optical expe. Guided by the three strategic principles of “Globalization, Technology-driven, andOpen Cooperation,” Cstal-Optech has established comprehensive, in-depth, and stable cooperative relationships with domesticand international end customers. We possess strong comprehensive competitive advantages in elds such as thin-lm optics, semi-conductor optics, and precision manufacturing. Currently, the Company has established six major production bases, coveringapproximately 1,000 acres, located in Taizhou, Zhejiang (Binhai, Jiju District, Linhai), Yingtan, Jiangxi, Dongguan, Guangdong, andVietnam.
Corporate Culture
Markets: Seven subsidiaries and oces covering the Greater China region,Pan-Asia Pacic region, European and American marketsProduction: Six production bases distributed at home and abroad, providing ser-vices for international and domestic customersR&D: Leverage overseas subsidia platforms to build an international R&Dcooperation system.
Company Prole
Development Strategy
Mission:Innovation makes optics more poweul, optics makes the world a
better place.
Vision:To become a world-class leading one-stop optical expe
Core Values:Learning, growth, gratitude,sharingBusiness Philosophy:Be a noble person anddoing excellent things.
Globalization
Based on the technical platforms of the Central Research Institute and the Technolo-gy R&D Center, we have veically integrated the entire process from advanced mate-rials, optical coating, ultra-precision nano-manufacturing to precision module devicepackaging, forming a one-stop agile integrated solution spanning from early designand development to trial production and mass production.
Technology Orientation
Maintaining close technical and business cooperation with the upstream and down-stream of the industrial chainOpen Cooperation
Corporate Honors
Awardee:Cstal-OptechAward Name:Second Place among Enterprises with Annual Tax Payment of
Over 100 Million Yuan in 2024Issuing Authority:CPC Jiaojiang District Committee of Taizhou City, Jiaojiang
District People’s Government of Taizhou City
Awardee:Cstal-OptechAward Name:China Patent Excellence Award (Ceicate ocially issued in May 2025; review results announced in December 2024)Issuing Authority:China National Intellectual Propey Administration
Awardee:Cstal-OptechAward Name:Excellent Supplier of 2024Issuing Authority:Xiamen Panasonic Electronics Information Co., Ltd.
Awardee:Cstal-OptechAward Name:Zhejiang Provincial Premium Manufactured Product 2025Issuing Authority:Depament of Economy and Information Technology of Zhejiang
Province
Februa 2025May 2025
June 2025August 2025
Awardee:Cstal-OptechAward Name:Taizhou “Intelligent Premium Product” 2025Issuing Authority:Taizhou Municipal Bureau of Economy and InformationTechnology
Awardee:Cstal-OptechAward Name:Zhejiang Provincial Excellent New Industrial Product 2025Issuing Authority:Depament of Economy and Information Technology of ZhejiangProvinceAugust 2025September 2025
Awardee:Cstal-OptechAward Name:Best Practice Case of Internal Control for Listed Companies2025Issuing Authority:China Association for Public Companies
Awardee:Cstal-OptechAward Name:Zhejiang Provincial Leading Private Economic Headquaers Enterprise2025
Issuing Authority:Depament of Economy and Information Technology of ZhejiangProvince
September 2025November 2025
Awardee:Cstal-OptechAward Name:Excellent Paner Award 2025Issuing Authority:VOYAH Automobile Technology Co., Ltd.
Awardee:YeshiliAward Name:Outstanding Contribution Unit to the Reective Materials IndustIssuing Authority:China Association of Trac Enterprise Management
November 2025November 2025
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
About Cstal-Optech
0910
2025 Annual Highlights and Peormance
Economic Peormance
Operating Revenue100 million yuan
69.28
Total Assets100 million yuan
127.17
Net Prot Attributable to Shareholdersof the Listed Company100 million yuan
11.72
Environmental Peormance
Environmental ProtectionInvestment10,000 yuan
1,390
Qualied Rate ofPollutant Monitoring100%Rectication Rate of HiddenEnvironmental Hazards100%
TonsRecycling Volume ofGeneral Waste1,498.86
Propoion of Recycled Waterin Total Water Consumption27%Recycling Rate ofHazardous Waste32%
tCO2eGreenhouse Gas Emission Reduction
15,714.29
Governance Peormance
Propoion of FemaleDirectors
16.67%
Propoion ofIndependent Directors
33.33%
Number of Paicipants inAnti-Corruption Training7,680
Person-timesResponse Rate onInteractive Easy Platform
100%
Total Cash Dividend10,000 yuan41,562.34
Social Peormance
R&D Investment10,000 yuan41,476.32
PatentsCumulative Numberof Authorized Patents
Customer ComplaintResolution Rate100%
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
tCO2e
Total Greenhouse Gas Emissions(Scope 1 and Scope 2)
20,462.56kWh160,000,000.00
Total Clean Energy Consumption
ScoreCustomer Satisfaction
89.7
Product QualicationRate
91.2%
Product Recall Rate0%
Total Investment inSafety Training10,000 yuan
Work SafetyInvestment
Work Inju Rate10,000 yuan
60.50%
5.98
10,000 yuanHoursCasesNew OccupationalDisease Cases
Assistance Amount for
Employees in Diculty
Total Hours ofEmployee Training
28,227.58
Total Investment inRural Revitalization10,000 yuan1320
Total Investment inSocial Welfare10,000 yuan
ESG Goals and VisionESG GovernanceStakeholder EngagementMateriality Issue Management
Environmental,Social andGovernanceManagement
1112
Environmental, Social andGovernance Management
1314
Cstal-Optech integrates the ESG philosophy as a vital component of its corporate development strategy. Focusing on areas suchas corporate governance, green manufacturing, and social responsibility, we seize oppounities presented by the new era of sus-tainable development, strive to contribute to the United Nations Sustainable Development Goals (SDGs), and guide the Companytowards a higher quality and more sustainable development path.
Cstal-Optech comprehensively strengthens its ESG management system by establishing a three-level governance structure con-sisting of the “Board of Directors — Strategy and Sustainable Development Committee — ESG Joint Working Group.” It has formu-lated the ESG Work Rules, forming a standardized management mechanism. Concurrently, the Company has developed the ESGWork Management Manual, establishing mechanisms for risk monitoring, budget management, information management, and per-formance management, improving the materiality management process, and promoting the transformation of the Company’s ESGmanagement towards “systematized operation,” thereby providing institutional suppo for continuously improving the ESG man-agement level. Fuhermore, the Company incorporates ESG peormance indicators related to environmental protection and occu-pational health and safety into the executive compensation system. This incentivizes the executive team to proactively assume sus-tainable development responsibilities, drives substantial progress in areas such as energy conseation, emission reduction, andgreen supply chain construction, and ultimately empowers the Company’s high-quality development.
The Company has continuously improved its governancestructure, strengthened compliance risk management andinternal control, and consolidated the cornerstone of theCompany’s development. At the same time, the Companyhas standardized information disclosure practices, pro-tected the legitimate rights and interests of investors,strengthened communication with stakeholders throughvarious activities such as peormance exchange meetingsand Q&A on the Interactive Easy Platform, and built ahealthy and sustainable capital market ecosystem.
Focus Area
Relevant
SDGsCorresponding
Section
2025 Initiatives of Cstal-Optech
ESG Goals and Vision
ESG Governance
CorporateGovernance
StandardizedGovernance
andSteady Operation
GreenManufacturing
Low-Carbon Actionsand GreenDevelopment
The Company has established a sound work safety man-agement system to fully protect the occupational healthand safety of employees; accelerated the construction oftalent teams relying on the Cstal Business School andemployee training programs; formulated the Administra-tive Procedures for the Labor Protection of Female Em-ployees to safeguard the legitimate rights and interests offemale employees; recruited talents through diversiedchannels such as social recruitment, campus recruitmentand online recruitment; established a fair and reasonablesala management system and a scientic peormanceappraisal mechanism; respected the cultural dierencesand customs of dierent nationalities, ethnic groups andreligions, and rejected any form of forced labor.
The Company has actively responded to the nationalrural revitalization strategy, promoted local developmentthrough consumption assistance, education assistance,employment assistance and other means; actively carriedout public welfare activities, and earnestly fullled socialresponsibilities.
SocialResponsibility
People-OrientedUniting forCommonProgress
GatheringStrengthfor PublicWelfareBeneting
People’sLivelihood
Governance Structure
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Focus Area
RelevantSDGsCorresponding
Section
2025 Initiatives of Cstal-Optech
The Company has optimized the energy utilization struc-ture, promoted the use of clean energy such as photovol-taic power and green electricity, strengthened waterresources management, enhanced water conseationawareness, promoted the recycling of energy and waterresources through technological upgrading and processimprovement; actively paicipated in climate change gov-ernance, reduced carbon emissions, and led the indust’slow-carbon transformation; practiced the concept ofcircular economy and improved material utilization e-ciency.
SocialResponsibility
TechnologyEmpowermentand ValueCo-Creation
The Company keeps up with the cutting-edge of theindust, continuously promotes technological innovation,and builds a complete talent suppoing mechanism andtechnological innovation system; maintains long-term andstable cooperative relations with suppliers, improves thewhole life cycle management process of products, andpromotes the improvement and optimization of productand seice quality.
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During the Repoing Period, the Company’s Wind ESG rating was upgraded from B to A, thanks to its excellent practices and inno-vative breakthroughs in the ESG eld, demonstrating the Company’s robust capabilities in systematic ESG management and sus-tainable development. This remarkable rating upgrade is a strong recognition of Cstal-Optech’s long-term commitment to prac-ticing the green development concept, deepening social responsibility, and improving governance system construction.
Cstal-Optech values communication and exchange with its stakeholders. The Company establishes diverse communication plat-forms to extensively and deeply gather the demands, expectations, and constructive opinions of various stakeholders. It fully con-siders these inputs and responds proactively, striving to create greater comprehensive sustainable development value for stake-holders and achieve mutual benet and win-win outcomes between the Company and its stakeholders.
Cstal-Optech fully considers ESG-related impacts, risks, and oppounities during strategy implementation, risk management, andmajor decision-making processes. Referring to the International Sustainability Standards Board (ISSB) IFRS S1 and S2 standardsand domestic guidelines, the Company carries out information disclosure work around the four core pillars of governance, strategy,risk management, and metrics and targets. The Company comprehensively identies and assesses ESG risks faced in various busi-ness segments, covering key areas such as climate change, occupational health and safety, supply chain management, and productquality, and takes countermeasures to continuously monitor risks. The Board of Directors, as the highest governing body for ESG,assumes ultimate oversight responsibility in ESG risk management, ensuring the Company’s safe, stable, and sustainable develop-ment.
Cstal-Optech’s ESG Governance Structure and Responsibilities
Governance BodyCompositionResponsibilities
Decision-Making Level
Management LevelExecution Level
Board of DirectorsStrategy and Sustainability
Committee
ESG Joint Working Group
Members of theBoard of Directors
General Manager of the
Company, heads offunctional depaments
responsible for ESGmatters, ESG liaisons ofsubsidiaries
Cstal-Optech 2025 ESG Kick-O Meeting
ESG Risk Management
The Company attaches great impoance to the identication and management of ESG risks, and strives to deeply integrate theconcept of sustainable development into the entire process of business operations and value creation. In key links such as supplychain access and major cooperation, we comprehensively evaluate the peormance and potential risks of relevant entities in termsof environmental compliance, the use of conict minerals, labor rights, occupational health and safety, and business ethics. Weeectively enhance the overall risk resilience and work with stakeholders to promote a responsible, transparent and long-term resil-ient development path.
ESG Due Diligence
The Company actively invites third-pay expes to conduct specialized ESG training, systematically interpreting ESG policies andrating systems, and providing specic improvement directions and practical case references from the three dimensions of environ-ment, society, and governance. During the exchange and discussion sessions, various depaments engaged in in-depth discussionson topics such as ESG data collection, peormance targets, and implementation path planning, eectively building internal consen-sus on ESG work. This training fuher claried the core goals and key implementation milestones for the 2025 ESG work, not onlydeepening paicipants’ understanding of ESG concepts and practical requirements but also laying a solid foundation for the Com-pany’s subsequent systematic promotion of ESG work.
ESG Capacity Building
Stakeholder Engagement
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Environmental, Social andGovernance Management
Responsible for overseeing and approvingthe ESG strategy and policies, ensuringalignment with the Company’s long-termdevelopment goals.Responsible for formulating ESG strategies,overseeing ESG peormance and majordecisions; identifying and supeisingESG-related risks and oppounities, andguiding management to adopt appropriateountermeasures.Formulate and implement ESG guidelines,strategies and targets, manage risks andimprove systems, supeise the implementa-tion of practices, and comprehensivelyadvance the Company’s ESG work.
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The Company has formulated the Materiality Assessment Management System, which fully references the Self-Regulato Guidelinesfor Listed Companies on the Shenzhen Stock Exchange No. 17 — Sustainability Repo (Trial) (hereinafter referred to as the “Guide-lines”), while closely considering the characteristics of the indust in which it operates and the actual situation of the Company’soperations. It comprehensively assesses the Company’s peormance on various relevant topics, determining whether they have asignicant impact on the economy, society, and the environment (i.e., impact materiality), while also considering whether each topicsignicantly aects the Company’s business model, business operations, development strategy, nancial condition, cash ow,nancing methods and costs, and value chain (i.e., nancial materiality). By considering this dual materiality, and also referring torelevant requirements of international mainstream sustainability repoing standards, a materiality analysis is conducted on thetopics within the Company’s topic database. The specic implementation steps are as follows:
Standardizing corporate governanceConduct internal auditsTax risk managementPracticing business ethics
Our Response
Standardizing corporate governance
Compliance and risk management
Tax complianceAnti-bribe and anti-corruption
Expectations and
DemandsStakeholder
Government and
RegulatoAuthorities
Strengthen information disclosureInvestor relations managementProtect the legitimate rights and interestsof minority shareholdersProtection of shareholders’rights and interestsAnti-bribe and anti-corruptionStakeholder communicationShareholdersandInvestors
Occupational hazard factor testing
and protectionProtection of employee rightsCompensation and welfare systemEmployee training management
Employee development pathsStrengthen democratic management and
employee care
Occupational health and safetyEmployee training and developmentProtecting the legitimate rights andinterests of employeesEmployees
GHG emission managementPromote energy conseationand emission reductionEnvironmental compliance managementCompliant pollutant emissionsImprove resource utilization eciencyImplement green oce practicesEcosystem protection
Addressing climate changeEnvironmental compliance management
Pollutant emissionsWaste managementEnergy utilizationEnvironment
Customer privacy protectionStrict control of product quality and safetyProtection of customer rightsData security and privacy protectionProduct and seice safety and quality
Customers
Build a responsible supply chainConduct supplier safety trainingConict minerals managementSupply chain securitySuppliers
Car out school-enterprise cooperationBuild innovation platformsR&D and innovationIndustAssociations
Suppo rural revitalizationin targeted areasPaicipate in public welfare andcharitable activitiesRural revitalizationSocial contributionCommunity
MaterialityAssessment Process
Analysis MethodAnalyze the macro environment based on global megatrends and China’s industrial devel-opment trends, the indust, and the Company’s business model to identify the Company’sstakeholders and the impacts, risks, and oppounities it faces.
Form a list of topics with impact materiality and nancial materiality, ensuring that rele-vant topics are disclosed transparently, in a balanced manner, and completely in therepo.
Using the 21 topics set foh in the Guidelines as the basis for the topic list, and referring torelevant requirements of international mainstream sustainability repoing standards, as wellas topics covered by peers in the indust, and benchmarking against the UN SustainableDevelopment Goals (SDGs), the Company established its 2025 ESG topic database, compris-ing a total of 29 topics.Impact Materiality Assessment:
Identify the potential or actual positive or negative impacts of each topic on the externalenvironment, society, and economy. Conduct research and analysis on stakeholders throughquestionnaires (250 questionnaires recovered), combined with expe judgment, to assesstopics with impact materiality.Financial Materiality Assessment:
Identify and assess risks and oppounities under relevant topics through analysis ofimpacts, dependencies, and other factors, combined with expe judgment and the riskidentication and assessment lists of various Company depaments, to assess topics withnancial materiality.
Step 1Understand the Company Context
Step 4Topic Conrmation and Approval
Step 2 Initial Topic Screening
Step 3Materiality Assessment
Materiality Issue Management
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Environmental, Social andGovernance Management
1920
Materiality Description
TopicsSocial DimensionGovernance DimensionEnvironmental Dimension
Topics with both Financialand Impact Materiality
/
Cstal-Optech Materiality Matrix
Crystal-Optech Material Topic List
Environmental ComplianceManagementEnergy UtilizationAddressing Climate ChangeCircular EconomyWater Resource UtilizationPollutant EmissionsWaste ManagementEcosystem and BiodiversityProtecting the Legitimate Rightsand Interests of EmployeesEmployee Training and DevelopmentOccupational Health and SafetyInnovation-DrivenTechnology EthicsProduct Safety and QualityProtection of Customers’ Rightsand InterestsInformation Security and PrivacyProtectionResponsible Supply Chain ManagementEqual Treatment of SMEsSocial ContributionRural RevitalizationProtection of Shareholders’ Rightsand InterestsStandardized Corporate GovernanceAnti-Commercial Bribery and Anti-CorruptionAnti-Unfair CompetitionTax ComplianceRisk ManagementDue DiligenceStakeholder EngagementESG GovernanceTopics with both Financial andImpact MaterialityTopics with Financial Materialitybut not Impact Materiality
Topics with Impact Materiality but notFinancial MaterialityTopics with neither Financial Materiality norImpact Materiality
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Addressing ClimateChangeEnvironmental Compli-
ance ManagementEnergy UtilizationPollutant EmissionsWaste Treatment
Circular EconomyWater ResourceUtilization
Occupational Healthand SafetyInhovation-DrivenProduct Safety andQualityResponsible SupplyChain Management
Protecting the Legiti-mate Rights andInterests of EmployeesEmployee Training andDevelopmentProtection of Custom-ers’ Rights and InterestsInformation Securityand Privacy ProtectionSocial ContributionRural Revitalization
Protection of Share-holders’ RightsStandardized CorporateGovernanceAnti-commercial Bribeand Anti-corruptionAnti-unfair CompetitionTax ComplianceRisk ManagementDue DiligenceStakeholder Engage-
mentESG Governance
Topics with Financial Materialitybut not Impact Materiality
Topics with Impact Materialitybut not Financial Materiality
/
Ecosystem andBiodiversity Protection
Technology EthicsEqual Treatment ofSmall and Medi-um-sized EnterprisesTopics with neither FinancialMateriality nor Impact Materiality
/
//
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Environmental, Social andGovernance Management
Our Philosophy
StandardizedGovernance andSteady Operation
2122
Cstal-Optech always adheres to leading high-quality developmentwith high-quality Pay building, continuously improves the internalgovernance system, strengthens internal control, and ensures thescienticity and compliance of decision-making. The Companyplaces high impoance on protecting investor rights and interests,establishing transparent and mutually trusting investor relationsthrough close communication. Upholding the principle of integrity inoperations and adhering to business ethics, we provide a solid guar-antee for achieving high-quality corporate development.Our Actions
Adhere to Standardize Corporate Governance, Strengthen InternalControl, Protect Investor Rights and Interests, Practice BusinessEthics.Responded SDGs
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Cstal-Optech adheres to the principle of lawful and compliant operations, continuously improves its internal governance, andenhances management eciency. Concurrently, the Company persistently renes its information disclosure and investor communi-cation mechanisms, striving to build transparent and mutually trusting investor relations.Governance Structure
Cstal-Optech strictly complies with the requirements of relevant laws and regulations, including the Company Law of the People’sRepublic of China (hereinafter referred to as the “Company Law”), the Securities Law of the People’s Republic of China (hereinafterreferred to as the “Securities Law”), and the Shenzhen Stock Exchange Stock Listing Rules. It has formulated the Aicles of Associa-tion of Zhejiang Cstal-Optech Co., Ltd. (hereinafter referred to as the “Aicles of Association”), forming a governance structurecomposed of the Shareholders’ Meeting, the Board of Directors and its special committees, and senior management, ensuring theCompany’s compliant operation and eective functioning.
Standardizing Corporate Governance
Board of Directors
The Board of Directors is the decision-making body of the Company, elected by the Shareholders’ Meeting, and is responsible forthe formulation and execution of the Company’s daily operational decisions. In accordance with the Aicles of Association, the Rulesof Procedure for the Board of Directors, and other regulations, the Company standardizes the deliberation and decision-making pro-cedures of the Board to ensure the timeliness and eectiveness of its decisions. All procedures for convening, holding, deliberating,and voting of Board meetings are legal and compliant, with complete and accurate meeting records, eectively safeguarding thequality and eciency of the Company’s major development strategies and operational decisions.The Company’s Board of Directors has four special committees: the Strategy and Sustainable Development Committee, the Remu-neration and Appraisal Committee, the Nomination Committee, and the Audit Committee. Each special committee exercises itspowers in accordance with their respective rules of procedure, namely the Rules of Procedure for the Strategy and SustainableDevelopment Committee, the Rules of Procedure for the Remuneration and Appraisal Committee, the Rules of Procedure for the Nomi-nation Committee, and the Rules of Procedure for the Audit Committee, providing professional advice and suppo for the Board’sdecisions, and eectively protecting the rights and interests of all shareholders and creditors. Among them, the Audit Committeelegally undeakes and peorms the functions of the Board of Supeisors as stipulated in the Company Law.
Standardized Governanceand Steady Operation
2324
Operational Mechanisms
During the Repoing Period
Shareholders’ MeetingThe Company strictly formulates the Rules of Procedure for Shareholders’ Meetings in accordance with relevant laws and regulationssuch as the Company Law and the Securities Law. The convening, notication, holding, and voting procedures of the Shareholders’Meeting strictly follow established rules, adopting a combination of on-site meetings and online voting to facilitate shareholder par-ticipation in decision-making. For major matters aecting the interests of minority investors, votes are counted separately forminority investors, and the voting results are promptly disclosed to protect the paicipation and voting rights of minority share-holders.
The Company convened a total of5 Shareholders’ Meetings, including 1 Annual Shareholders’ Meeting and 4 ExtraordinaShareholders’ Meetings, reviewing and approving 19 proposals.
Cstal-Optech’s Organizational Structure Cha
Jiangxi Cstal-OptechJingchuang TechnologyTaijia Electronic Information Technology Co., Ltd.Jingjing OptechJingchi OptechJingte Optics
Hangzhou BranchShenzhen BranchLinhai Cstal-OptechHong Kong CompanyUSA CompanyJapan Company Vietnam Cstal-OptechYeshili New Materials Co., Ltd.Xianju Yeshili
COTCCOTVCOT Vietnam
Shareholders’
MeetingBoard ofDirectors
CEO
Transformation Oce
External Circulation
Project TeamSecurities Aairs CenterAudit and Supeision Center
General Manager’s Oce
Strategy and NewBusiness Task Force
Business andOperations Task ForceThree Platforms Capacity
Building Task Force
Central Research
Institute
BusinessDevelopment
CenterTechnology R&D
CenterTechnology Platform
IntelligentManufacturing
Center
Supply Chain
Center
HumanResources Center
FinanceCenter
Base OperationsCenterInformationCenterMiddle OceBack O?ce
Supply and Manufacturing PlatformMarketingPlatform
Major Decision-Making
Committee
Account Business Unit 1Account Business Unit 2Customer Business UnitAutomotive Optoelectronics Division
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Remuneration ManagementIn accordance with the provisions of the Company Law, the Aicles of Association, the Rules of Procedure for the Remuneration andAssessment Committee of the Board of Directors and other regulations, the Company has formulated the 2025 annual remunerationplan for directors and senior executives. The internal directors and senior executives of the Company implement an annual salasystem based on structural sala, which consists of three pas: basic sala, peormance sala and benet bonus. The remunera-tion of independent directors is determined by the allowance plan reviewed and approved by the Board of Directors and the Gener-al Meeting of Shareholders.The remuneration plan for non-independent directors and senior management is researched, formulated and proposed by theRemuneration and Assessment Committee, and submitted to the Board of Directors for deliberation and approval. Among them, thedirector remuneration plan also needs to be submitted to the General Meeting of Shareholders for deliberation, with a standardizedand transparent decision-making process. In addition, the Company also discloses detailed information on the remuneration ofdirectors and senior executives in the annual repo to facilitate the understanding and supeision of shareholders and the public.
Standardized Governanceand Steady Operation
2526
Diversity of Board Members
During the Repoing Period
The Company held 12 meetings of the Board of Directors and deliberated and approved 50 proposals; held 4 specialmeetings of independent directors and deliberated 4 proposals; the Strategy and Sustainability Committee held 2 meetingsand deliberated 2 proposals; the Nomination Committee held 2 meetings and deliberated 5 proposals; the Audit Commit-tee held 4 meetings and deliberated 15 proposals; the Remuneration and Assessment Committee held 5 meetings anddeliberated 10 proposals.
The Company values the diversication of the Board of Directors, fully considering factors such as gender, age, ethnicity, culture,educational background, skills and knowledge, and professional experience to ensure diverse perspectives are brought to the Com-pany’s strategic decision-making. The Company nominates director candidates in accordance with the Aicles of Association, whoare elected by vote at the Shareholders’ Meeting for a term of three years. The Company’s Board of Directors consists of 12 direc-tors, with one new employee representative director added during the Repoing Period. Board members possess professionalknowledge and indust experience in multiple elds, including corporate management, economics, nance, nancial accounting,auditing, legal compliance, and the automotive indust, providing a strong foundation for the Company’s decision-making.
Diversity
The Company has formulated systems such as the Independent Director Working System, which claries the responsibilities and per-formance methods of independent directors, and continuously improves the peormance eciency of independent directors.During the Repoing Period, the Company optimized and improved the working mechanism of special meetings for independentdirectors, guaranteed the on-site working hours of independent directors, strengthened peormance eciency, and ensured theindependence and professionalism of their decision-making. The independent directors of the Company maintained independentpeormance, actively paicipated in relevant meetings, carefully reviewed various proposals, and eectively safeguarded the rightsand interests of the Company and all shareholders. Independent directors conduct self-inspection on their independence eve yearand submit the self-inspection repo to the Board of Directors. The Board of Directors evaluates the independence of the incum-bent independent directors eve year and issues a special opinion, which is disclosed together with the annual repo. During theRepoing Period, the Company had 4 independent directors, accounting for 33.33%.
Independence
GenderEducation BackgroundAge Distribution
MaleFemaleBachelor’s Degree
Doctoral DegreeMaster’s Degree
Over 60 years old50-60 years oldUnder 50 years old
16.67%
83.33%
41.67%
41.67%
16.67%
58.33%
25.00%
16.67%
Compliance DevelopmentInternal Control
In accordance with the requirements of relevant laws and regulations such as the Basic Norms for Enterprise Internal Control and theCode of Corporate Governance for Listed Companies, Cstal-Optech has built and continuously optimized the internal controlsystem. The Company has formulated the Internal Audit Management System and the Internal Audit Work Management System, andestablished the Audit Committee of the Board of Directors and the Audit Depament to inspect and supeise the establishmentand implementation of the Company’s internal control system, the authenticity and integrity of the Company’s nancial information,etc. The Audit Depament evaluates and supeises the risk management of various depaments of the Company, holding subsid-iaries and paicipating companies with signicant inuence, including but not limited to strategic, nancial, market, operational andlegal risks, and is subject to the supeision and guidance of the Audit Committee at the same time. The internal audit of the Com-pany adheres to the principles of independence, avoidance, prudence, condentiality, impaiality, objectivity and seeking truth fromfacts. During the Repoing Period, the Company carried out a total of 16 audit projects, with a rectication rate of 76% for auditissues.The Company continuously strengthens the construction of internal control, takes the eectiveness of internal control as an eec-tive guarantee and suppo for operation, and continuously promotes the construction of internal control from ve aspects: controlenvironment, risk assessment, control activities, information and communication, and supeision activities, to promote the stan-dardized operation of the internal control system of the Company and its aliated enterprises. The Company carries out the eec-tiveness evaluation of internal control eve year, and truthfully discloses the Self-Evaluation Repo on Internal Control. During theRepoing Period, Cstal-Optech was successfully selected into the “Best Practice Cases of Internal Control for Listed Companies”by the China Association for Public Companies.
Tax ManagementIn strict compliance with the provisions of relevant national laws, regulations and policies such as the Law of the People’s Republic ofChina on the Administration of Tax Collection, the Interim Regulations of the People’s Republic of China on Value-Added Tax, and theEnterprise Income Tax Law of the People’s Republic of China, Cstal-Optech has formulated the Financial Management System, con-tinuously improved the tax management system, actively fullled tax payment obligations, timely and publicly disclosed tax-relatedinformation, eectively managed and controlled tax risks, and comprehensively improved the Company’s tax management capabili-ties.
Related Pay Transaction Management
To fuher standardize the management of related transactions, Cstal-Optech has formulated the Measures for the Administrationof Related Transactions, which claries the identication of related paies, transaction decision-making authority, deliberation pro-cedures and information disclosure requirements. All related transactions of the Company strictly follow the corresponding approvalprocedures of the Board of Directors or the General Meeting of Shareholders, and are announced and disclosed in a timely manner.During the deliberation process, the mechanism of abstention from voting by related directors and related shareholders is strictlyimplemented. Related transactions follow the market-oriented pricing principle to ensure fair and equitable transaction conditions.The Audit Committee of the Company is responsible for supeising the peormance of related transactions, and eectively pro-tects the legitimate rights and interests of the Company and all shareholders, especially minority shareholders.
In terms of operation mechanism, the Company strengthens the man-agement of compliance awareness in key areas, links and personnel,organizes multiple legal knowledge training sessions, improves theawareness of compliance and risk control of all employees, and ensuresthe steady operation of the Company.
Best Practice Case of InternalControl for Listed Companies
Standardized Governanceand Steady Operation
2728
In Janua 2025, the Company organized a special training on “Contract Legal Risk Prevention” for the supply chain center.Focusing on four aspects including before signing, during signing, during peormance and the whole process of contractmanagement, the training systematically soed out common legal risk points, and carried out targeted Q&A combined withthe actual supply chain business, which eectively enhanced the legal risk awareness of supply chain business personneland improved the standardization of contract management.
CaseStudy
Special Training on Contract Legal Risk Prevention
Special Training on Contract Legal Risk Prevention
During the Repoing Period
The total amount of taxes paid by the Company was 582.4126 million yuan
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Information DisclosureIn strict compliance with the relevant requirements of the Shenzhen Stock Exchange such as the Measures for the Administration ofInformation Disclosure of Listed Companies, the Stock Listing Rules, and the Self-Regulato Guidelines for Listed Companies No. 5 –Administration of Information Disclosure Aairs, the Company has formulated systems such as the Implementation Rules for theInformation Disclosure Management System and the Administrative System for the Suspension and Exemption of Information Disclo-sure, established an eective information disclosure management mechanism, standardized the information disclosure behavior ofthe Company, and safeguarded the legitimate rights and interests of the Company, investors and other stakeholders. During theRepoing Period, the Company fullled its information disclosure obligations for periodic repos and interim repos in accordancewith laws and regulations, and there were no penalties from securities regulato authorities due to violations of information disclo-sure.
Capital Market Public Opinion ManagementThe Company incorporates reputation management into the core link of value management, formulated the Emergency HandlingSystem, and timely eliminates information deviation through real-time public opinion monitoring and rapid response and clarica-tion, to help investors make rational judgments and maintain the corporate image in the capital market.
Investor Relations ManagementTo establish a diversied and multi-channel investor communication system and ensure timely dissemination of the Company'soperational information, we have leveraged our ocial WeChat account to launch distinctive columns such as "Visualizing RegularRepos," "Digital Human Interpretations," and "Investor Q&A Selections," continuously innovating the format of information disclo-sure. Among these, the "Digital Human Interpretations" column utilizes digital human technology to create an exclusive avatar of theChairman, oering visual explanations of core data, peormance growth logic, and key drivers in regular repos. This approachenhances the eciency and readability of information transmission in a vivid and intuitive manner, yielding positive market feed-back.The Company has established a dedicated "Investor Relations" section on its ocial WeChat account, integrating practical fea-tures such as stock price inquiries, nancial summaries, and an investor calendar. Additionally, it includes an AI digital human intelli-gent response module, promoting the deep integration of aicial intelligence technology with investor relations management.In
Cstal-Optech always attaches great impoance to the protection of investor rights and interests, strictly adhering to the princi-ples of truthful, accurate, and complete information disclosure, and promptly disclosing information related to the Company’s oper-ations and governance. The Company continuously keeps communication channels with investors open, building ecient interactivebridges through diverse forms, while also improving the mechanism for protecting shareholder rights, equally safeguarding thelegitimate rights and interests of various types of shareholders, and consolidating the foundation of trust in the capital market.
Protecting Investor Rights
Investor Reception Day EventInvestors Visiting Cstal-Optech Activity
2930
During the Repoing Period
The Company disclosed a total of 4 periodic repos and 70 interim announcements.
During the Repoing Period
The Company eectively answered 140 investor questions on the “Hudong Yi” platform, achieving a 100%response rate. It proactively disclosed 20 records of investor relations activities, held 5 online peormance briengsfor periodic repos, proactively released 3 “Understanding the Company’s Periodic Repos and Peormance Fore-cast in One Picture” posts and 1 “Understanding the ESG Repo in One Picture” post on its ocial WeChat account,held 1 open exchange meeting for investors, and hosted 1 “Investors Visiting Listed Companies” activity.
terms of oine communication, the Company continues to enrich investor exchange activities. During the 2025 Investor Day event,the Chairman and the head of the AR business were invited to provide investors with a detailed introduction to the Company's "15thFive-Year Plan" strategic framework and the latest developments in the AR indust, precisely addressing key concerns raised byinvestors.In 2025, the Company was honored with the "16th China Listed Company Investor Relations Management Tianma Award" and the"2024 Zhejiang Investor Reward Excellence Case" by the Zhejiang Listed Companies Association. It was also included in the ChinaListed Companies Association's 2025 Cash Dividend List for Listed Companies. These accolades fully reect the capital market's highrecognition of the Company's investor relations management and its eectiveness in delivering returns to investors.
Standardized Governanceand Steady OperationZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Anti-Bribe and Anti-Corruption
Protection of Shareholders’ Rights and Interests
Cstal-Optech attaches impoance to protecting the legitimate rights and interests of minority shareholders, strictly following theprot distribution policies and share repurchase clauses stipulated in the Aicles of Association. The Company’s prot distributionpolicy maintains continuity and stability while taking into account the long-term interests of the Company, the overall interests of allshareholders, and the Company’s sustainable development, ensuring that shareholders share the fruits of development.
Cstal-Optech regards anti-commercial bribe and anti-corruption as the cornerstone of corporate governance and sustainabledevelopment. It strictly complies with relevant anti-corruption and anti-bribe laws and regulations in its operating locations,strengthens the anti-corruption and integrity awareness of all employees, and encourages both internal and external stakeholdersto jointly foster a clean and fair business environment.
Practicing Business Ethics
Unit202320242025
Total Cash Dividends Paid41,239.4941,261.9941,562.34
10,000
yuan
Cash Dividend Per Share0.30.30.3yuanPropoion of the Net Prot Attributable toShareholders of the Listed Company in theConsolidated Financial Statements
68.7040.0735.45%
Integrity Management System
Cstal-Optech has formulated systems such as the Control Procedure for Anti-Corruption, Anti-Bribe, and Misappropriation ofCompany Funds, strictly regulating the behavior of its employees and inuencing suppliers to protect the interests of the Company,shareholders, directors, employees, customers, business paners, and other paies from infringement. In addition, through theCode of Ethical Conduct and the Employee Handbook, and by having employees sign an Integrity and Self-Discipline CommitmentLetter, the Company standardizes the integrity and ethical behavior of all employees.The Company’s business ethics are supeised by committees under the Board of Directors and senior management. The Compa-ny’s audit depament is responsible for receiving and handling repos and complaints regarding corruption, extoion, and embez-zlement, and the handling results must be submitted to the Audit Committee for review and approval. During the Repoing Period,the Company had no major penalties related to bribe or corruption incidents.
Corruption Risk AssessmentThe Company conducts audits on business ethics-related content from time to time, continuously evaluating the business ethicspeormance of its subsidiaries, supply chain, and production processes. It encourages supply chain paners to jointly adhere tointegrity and ethical standards, ensuring consistency between the internal and external business environment. The Company reposaudit results and rectication plans to the Board of Directors and management, and after summarizing the issues found in theaudits, communicates them to all employees through internal meetings, corporate information platforms, and other channels,enhancing the transparency of supeision.Integrity Culture Building
The Company actively promotes the deep integration of integrity culture with the corporate governance system and job responsibil-ities, actively carries out anti-corruption publicity activities, and regularly conducts anti-corruption training for employees, eec-tively strengthening the integrity awareness of all employees.
3132
On October 30, 2025, Cstal-Optech held its 2025 Anti-CorruptionWork Promotion and Education Conference. At the meeting, theCompany, in conjunction with the Jiaojiang Public Security Econom-ic Investigation Brigade, jointly conducted economic crime warningeducation, providing in-depth analysis and case explanations oncommon crime types such as bribe by non-state functionaries,embezzlement, and misappropriation of funds. The conferencecalled on all employees to be strict with themselves, resolutely resistcorruption, actively paicipate in anti-corruption work, and jointlycreate a clean and upright Cstal-Optech.
CaseStudy
Anti-Corruption Work Promotion and Education Conference
Themed Warning Education on Economic Crimes
During the Repoing Period
The signing rate of the Company’s Letter of Commitment on Integrity and Self-Discipline was 95% (for personnelabove P4 level, 500 people were required to sign, and 475 people actually signed.)
During the Repoing Period
The Company held 3 anti-corruption training session, with 7,680 paicipants.
Indicator
The statistical scope is based on the calendar year to which the cash dividend peains, consistent with the scope of the annual repo.
Standardized Governanceand Steady OperationZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Anti-Monopoly and Anti-Unfair Competition
Cstal-Optech strictly complies with national laws and regulations such as the Anti-Monopoly Law of the People’s Republic of Chinaand the Anti-Unfair Competition Law of the People’s Republic of China. It has formulated the Fair Trading Management Procedure,with the audit depament responsible for centralized management. The Company and all paies mutually keep business secretscondential during transactions, explicitly prohibiting employees from illegally obtaining, disclosing, or using the other pay’s busi-ness secrets, thereby creating a market environment of integrity and fair competition. At the same time, the Company regularly con-ducts training for employees on the interpretation of anti-unfair competition regulations and risk response. During the RepoingPeriod, the Company had no lawsuits or major administrative penalties due to unfair competition practices.The Company adheres to responsible marketing, formulating the Quality Integrity Management Measures to ensure that all adver-tisements, introductions, brochures, announcements, etc., are true and credible, and there are no illegal acts such as fabricating orspreading false facts to disrupt the market order. In addition, the Company regularly organizes quality integrity publicity and educa-tion for employees, continuously strengthening the quality awareness and professional ethics of all employees. Relevant functionaldepaments fully leverage the role of the credit risk management mechanism, implementing full-process monitoring of businessactivities to eectively identify and avoid various credit risks.
Repoing and ComplaintsCstal-Optech encourages all employees, paners, and other informed individuals to repo any corrupt practices or provide rele-vant evidence as witnesses in corruption investigations. Upon receiving a repo, the Audit Depament will establish a specialinvestigation team within three working days to car out evidence collection and investigation in accordance with laws and regula-tions. For conrmed repos, the Company will reward the whistleblower accordingly according to regulations. At the same time, theinvestigation results and handling status will be promptly repoed to the General Manager and relevant depament heads toensure serious and closed-loop handling of the case.To facilitate internal and external personnel in raising issues, the Company has established multiple repoing channels, including ananonymous email and a dedicated telephone line. The contact information is displayed in prominent positions in oce spaces suchas meeting rooms. The Company solemnly promises to implement the principle of “eve repo will be investigated, and evereal-name repo will receive feedback,” and implements a strict condentiality policy for whistleblower information, eectivelysafeguarding the personal safety and legitimate rights and interests of whistleblowers, and strictly prohibits any form of retaliation.
3334
During the Repoing Period, the Company orga-nized relevant key account managers to conducttraining focusing on the interpretation of fair com-petition legal provisions, identication of typicalviolations, corporate compliance practices, and riskresponse, achieving the goals of enhancing em-ployee awareness, standardizing behavior, andreducing corporate compliance risks.
CaseStudy
Key Account Manager Training
Key Account Manager Training
During the Repoing Period
The Company conducted 1 anti-unfair competition training session, with 20 paicipants.
Reporting Email: sjb@crystal-optech.com Reporting Hotline: ????-????????
Standardized Governanceand Steady OperationZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
3536
Low-CarbonActions, GreenDevelopment
Our PhilosophyCstal-Optech actively fullls its responsibility for environmentalprotection. Guided by green, economic, and intelligent principles,we commit ourselves to building an ecological civilization, strength-ening pollution control and ecient resource utilization, and leadingthe indust’s low-carbon transformation. Through concrete actions,we demonstrate our rm belief and relentless pursuit on the path ofsustainable development, striving to paint a beautiful picture of har-monious coexistence between economic prosperity and ecologicalbalance.Our ActionsAddressing Climate Change, Greenhouse Gas Emission Manage-ment, Improving Environmental Management System, Pollutant andWaste Management, Energy Utilization, Water Conseation, Prac-ticing Circular Economy Principles, Biodiversity and Ecosystem Pro-tectionResponded SDGs
3536
Extreme weathersuch as heavy rain,oods and typhoonsmay cause damageto coastal factofacilities andproductioninterruption.
Rising costs andreduced revenue
Risk/Oppounity
Type
CountermeasuresRisk/Oppounity
Description
Likelihood ofOccurrence
ImpactTimeframe
ExpectedFinancial Impact
Physical
Risk
TransitionRisk
AcuteRisk
HighSho Term
Cstal-Optech Training on Addressing Climate Change
3738
Governance
Pay close attention to weatherdisaster forecasts and equipemergency supplies;Establish and improve the emergencymanagement mechanism, formulateemergency plans, and conductregular emergency drills;Take reinforcement and protectionmeasures for impoant equipmentand buildings.
Governments at homeand abroad haveincreasingly strictrequirements forgreenhouse gasmanagement such asgreenhouse gasaccounting andinvestigation, andcarbon emissionstandards are becomingstricter.
If the Company failsto timely disclose thecorrespondingenvironmentalinformation, it mayface increased nesor impact on expobusinessPolicyRisk
High
Sho,MediumandLong Term
Collect relevant laws and regulations,update them quaerly, implementmanagement in accordance with therequirements of various regulations,and conduct compliance evaluation;Continuously pay attention to thedisclosure requirements forgreenhouse gas emissions fromregulators, investment institutions,etc., strengthen carbon emissionmanagement, and enhanceinformation disclosure related toaddressing climate change.Consumer demandshifts to green andlow-carbon products,intensifying marketcompetition; theupstream supply chainmay increase invest-ment in carbonreduction due to carbonemission policies,leading to rising rawmaterial prices andoperating costs.
Increased operatingcosts and reducedrevenueMarket
Risk
High
Sho,Medium
andLong Term
Strengthen market research andtrend analysis, understand thechanging trend of consumers’environmental protection needs, thedynamics of competitors’ greenproducts and the indust policytrend, and formulate green marketingstrategies;Give priority to suppliers that providelow-carbon and environmentallyfriendly raw materials and seices.
Cstal-Optech integrates environmental protection and sustainable development into its overall operational strategy. The Board ofDirectors and management are responsible for supeising and managing matters related to addressing climate change. The Com-pany has formulated the Greenhouse Gas Management System, with the Utility Engineering Depament responsible for greenhousegas management, conrming and calculating greenhouse gas emissions, and strengthening the Company’s climate governance. TheCompany has set up incentive bonuses for energy conseation and consumption reduction project teams to boost the enthusiasmof the entire team. During the Repoing Period, the Company conducted training on addressing climate change, explaining the pro-cess of identifying, assessing, and managing climate risks and oppounities, eectively strengthening the climate managementawareness and practical understanding of relevant employees.
Strategy
Following the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), Cstal-Optech identies andassesses climate change-related risks and oppounities and actively takes countermeasures to ensure the Company’s safe andstable operation.
Facing the environmental challenges posed by climate change, all of Cstal-Optech’s production bases continuously improve theintegrated emergency mechanism of “monitoring-warning-response.” On the basis of ensuring safe production, we unsweinglyfulll our prima responsibility for corporate environmental protection, fully implement the concept of green manufacturing, andare committed to achieving low-carbon, circular, and harmless production processes, reducing energy consumption and carbonemissions.
Addressing Climate Change
Chronic
Risk
Aected factoproduction eciencyand reduced revenueMedium
Medium
andLong Term
Build water collection and reclaimedwater reuse systems, and applywater-free or low-water consumptioncleaning technologies;Upgrade the plant cooling systemand introduce liquid coolingtechnology to replace traditional aircooling;Develop high-temperature resistantmaterial packaging technology toimprove the thermal stability ofproducts.
Drought or watershoage caused byclimate change mayexpose factories towater restrictionpolicies, aecting thecooling system andcleaning processes. Atthe same time,sustained hightemperatures in summerwill lead to a surge inpower demand, andmay also reduce theheat dissipationeciency of electricalequipment, resulting inproduction interruption.
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Low-Carbon Actions,Green Development
3940
Impact, Risk, and Oppounity Management
Cstal-Optech has formulated the Management Procedure for Risk and Oppounity Countermeasures, continuously improving theclimate change risk and oppounity management process.
Metrics and Targets
Based on national carbon peak and carbon neutrality goals and indust development trends, Cstal-Optech sets phased green-house gas emission reduction targets, carries out energy conseation and emission reduction work, and tracks target progress toensure coordination between the Company’s business growth and sustainable development.
2.Likelihoodrefers to the frequency inteal or probability of the risk or oppounity occurring, primarily based on historical occurrence probability,
external scenarios, policy implementation progress, and expe predictions. Likelihood ranges from "Low" to "High."
3.Impact Timeframe refers to the timeframe over which dierent climate-related risks and oppounities will impact the Company. The Company
categorizes the time horizon as sho-term (0-1 year), medium-term (1-5 years), and long-term (5+ years).
Climate Change Risk and Oppounity Management Process
Referring to the TCFD recommended disclosure framework, combined with the externalenvironment, indust, and Cstal-Optech’s own business characteristics, identify therisks and oppounities the Company faces in addressing climate change.
Assess the suitability of current control measures for material climate risks and oppouni-ties and adjust them. For risks, formulate risk prevention, mitigation, and recove mea-sures; for oppounities, adjust business strategies or allocate appropriate resources.
Based on risk identication, the Company assesses the materiality of climate risks andoppounities in terms of likelihood and impact timeframe, determining their priority rank-ing.Through identication and discussion with various units and business groups, assess thepotential business and nancial impacts of each material climate risk and oppounity, aswell as the current management status of risks and oppounities, and conduct nancialimpact analysis based on actual business conditions.
Identify Climate Risks and Oppounities
Determine Control Measures for Material
Climate Risks and Oppounities
Assess Materiality of ClimateRisks and OppounitiesAnalyze Financial Impacts of MaterialClimate Risks and Oppounities
Target ContentAchievement StatusReduce carbon emissions per million yuan of output
value by 3% in 2025 compared to 2024
Risk/Oppounity
Type
CountermeasuresRisk/Oppounity
Description
Likelihood ofOccurrence
ImpactTimeframe
ExpectedFinancial Impact
The growing demandfor the application ofenergy-saving andcarbon reductiontechnologies, and theupgrading of produc-tion processes byenterprises will helpimprove energyutilization eciency andreduce carbonemissions.
Reducedoperating costs
Oppounity
TechnologyOppounity
High
Sho,MediumandLong Term
Strengthen the construction of theinternal R&D team and developenergy-saving and carbon reductiontechnologies;Car out indust-university-re-search cooperation and exploretechnology introduction.
The government hasintroduced policiessuch as nancialsubsidies, taxincentives, and greennance to addressclimate change,encourage enterprisesto improve resourceutilization eciency,and provide substantivesuppo for them.
Reduced operatingcostsPolicySuppo
High
Sho,Medium
andLong Term
Accelerate energy transformation,reduce dependence on traditionalfossil energy, and lower carbonemissions.
ProductsandSeices
Expanded marketshare and increasedrevenueHigh
Sho,Medium
andLong Term
Accelerate the R&D and innovation ofgreen products.Providing low-carbonproducts and seicesthat meet customerneeds can bring newbusiness growth pointsfor the enterprise.
Achieved
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Low-Carbon Actions,Green Development
Photovoltaic Power Generation
Cstal-Optech actively promotes the use of clean energy by installing photovoltaic power generation systems to increase the pro-poion of renewable energy used. In 2025, the total installed capacity of Cstal-Optech’s distributed photovoltaic projects reached
11.215MW, including 3.8MW at the Taizhou Binhai plant, 1.89MW at Jiangxi Cstal-Optech 2.325MW at Yeshili, and 3.2MW at
Linhai Cstal-Optech The distributed photovoltaic project at COT Vietnam is also being implemented intensively.
Green Electricity Procurement
The Company continuously increases the propoion of green electricity procurement and extensively applies it across variousaspects of its production and operations. In 2023, the Company purchased 70 million kWh of green electricity ceicates. In 2024,the Company purchased 130 million kWh of green electricity ceicates, of which the Binhai plant procured 27.281 million kWh ofgreen electricity. In 2025, the Company purchased 205 million kWh of green electricity ceicates, utilized 160 million kWh, and hada remaining balance of 45 million kWh, demonstrating its commitment to advancing the transformation of the energy structurethrough concrete actions.
Taizhou Binhai 3.8MWYeshili 2.325MW
Jiangxi Cstal-Optech 1.89MWLinhai Cstal-Optech 3.2MW
Energy Storage 5MW/10MWh ProjectCOT Vietnam Photovoltaic Project (Under Construction)
4142
Greenhouse Gas Emission Management
To achieve the greenhouse gas emission reduction targets, the Company has formulated detailed emission reduction measures andimplementation plans, and reduced carbon emissions through the purchase and use of green electricity, photovoltaic power genera-tion, production process optimization, and the commissioning of energy storage equipment. The Company has established a contin-uous improvement mechanism for greenhouse gas management, continuously optimized the Company’s greenhouse gas manage-ment system and emission reduction strategies, continuously improved the Company’s greenhouse gas management level andemission reduction results, and actively contributed to the realization of the Company’s sustainable development and climatechange response goals.
Cstal-Optech accurately calculates and strictly controls greenhouse gas emissions. The Company’s operational GHG emissionsmainly originate from purchased electricity, gasoline, diesel, and natural gas. The prima GHG is carbon dioxide, with stationacombustion sources accounting for 99.87%, mobile sources for 0.13%, and fugitive emissions being negligible.The Company's green-house gas accounting is carried out in strict accordance with normative documents including Appendix II of the Guidelines forAccounting and Repoing of Greenhouse Gas Emissions by Electronic Equipment Manufacturers (for Trial Implementation), the Gener-al Principle for Calculation of Comprehensive Energy Consumption (GB/T 2589-2020), reference coecients for conveing varioustypes of energy into standard coal in Appendix 4 of the China Energy Statistical Yearbook, the 2023 Power Sector CO2 Emission Fac-tors, and the China Electric Power Indust Annual Development Repo 2024.The core calculation logic of the accounting is ActivityData × Emission Factor. The relevant accounting results have not been veried by a third-pay verication institution.
Unit2025
Direct (Scope 1) Greenhouse Gas EmissionsIndirect (Scope 2) Greenhouse Gas EmissionsTotal Greenhouse Gas Emissions (Scope 1 and Scope 2)
Greenhouse Gas Emission Reduction
357.12
20,105.4420,462.56?.????.???.??15,714.29
tCO?etCO?etCO?etCO?etCO?etCO?etCO?e
Indicator
4.The greenhouse gas emission data only covers the consumption of the Binhai Facto Area. As for the remaining units, their emission scales are
insignicant and have no material impact on the overall results, so they are excluded from the statistics. The same applies to the data on energyconsumption and water resource utilization.
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Low-Carbon Actions,Green Development
Direct (Scope 1) Greenhouse Gas Emissionsper Million Yuan of RevenueIndirect (Scope 2) Greenhouse GasEmissions per Million Yuan of RevenueTotal Greenhouse Gas Emissions (Scope 1 and Scope 2)
per Million Yuan of Revenue
Supply Chain DecarbonizationThe Company collaborates with suppliers to jointly promote GHG emission reduction in the supply chain, encouraging suppliers toprovide low-carbon, environmentally friendly raw materials and seices, optimizing supply chain logistics and distribution, andreducing GHG emissions during transpoation. At the same time, the Company is committed to developing more energy-ecientand miniaturized optical components, indirectly helping downstream customers (e.g., consumer electronics, automotive electronics)reduce the energy consumption of their products.
4344
Green Electricity Ceicate Transaction Voucher
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Low-Carbon Actions,Green Development
Governance
Cstal-Optech strictly complies with national laws and regulations such as the Environmental Protection Law of the People’s Repub-lic of China and requirements in its operating locations. It has formulated internal systems like the Environmental Permit Manage-ment Measures and takes measures to reduce the environmental impact of its operations. We have established an environmentalmanagement team led by the General Manager, incorporated environmental protection work into peormance appraisals, and regu-larly conrmed the eectiveness of the environmental management system, fullling the Company’s environmental responsibilitythrough concrete actions. In 2025, Cstal-Optech’s environmental credit rating was A. The Company experienced no penalties forviolating environmental management laws and regulations, and there were no signicant deciencies in its environmental monitor-ing plans and risk management measures.
Environmental Organization Structure Cha
4546
Environmental Management System
Cstal-Optech adheres to the environmental policy of “Controlling Environmental Substances, Creating a Green Environment.” Itcontinuously improves its environmental management system by strengthening source prevention, process supeision, andresource utilization, eectively enhancing environmental peormance and actively practicing the concepts of green operation andsustainable development.
Environmental Compliance Management
During the Repoing Period
Cstal-Optech and its branches and subsidiaries Xintaijia, Jiangxi Cstal-Optech, Jiangxi Jingchuang, Jingte Optics,and COT Vietnam were audited and complied with the requirements of ISO14001?2015 and obtained the correspond-ing ceication ceicates.
Unit2025
Environmental Protection Tax Paid
EnvironmentalProtection Investment
?,????.??
2024
???.???.??
2023???.??
?.??10,000yuan10,000yuan
Indicator
GeneralManager
Base OperationsCenterEnvironment,Health and SafetyDepament
ABU1 (AccountBusiness Unit 1)ABU2 (AccountBusiness Unit 2)
CustomerBusiness Unit
LogisticsDepamentPlant Engineering
Depament
Business
Unit
Subsidiaries /
Branches
FunctionalPlatform
DirectlyResponsibleIndividual
Cstal-Optech EnvironmentalManagement System Ceication
Xintaijia EnvironmentalManagement System Ceication
Jiangxi Cstal-Optech EnvironmentalManagement System Ceication
Jiangxi Jingchuang EnvironmentalManagement System Ceication
Jingte Optics EnvironmentalManagement System Ceication
Vietnam Cstal-Optech EnvironmentalManagement System Ceication
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Low-Carbon Actions,Green Development
StrategyAs a key pollutant discharge unit, Cstal-Optech remains highly vigilant about environmental issues, systematically identifying andanalyzing various environmental factors in its production and operations, as well as the risks and oppounities arising from thesefactors, and formulating corresponding measures.
Impact, Risk, and Oppounity Management
Metrics and Targets
4748
Cstal-Optech has formulated systems such as the Control Procedure for Environmental Factor Identication and Evaluation and theManagement Procedure for Risk and Oppounity Countermeasures. Various depaments and business groups identify and conrmenvironmental factors according to regulations and output the List of Signicant Environmental Factors, clarifying potential environ-mental impacts and corresponding control plans to achieve ecient control of environmental risks.
Environmental Factor Identication and Evaluation
The Company has formulated the Environmental Monitoring Management Measures, specifying and dening environmental monitor-ing activities and requirements within the management system. The Utility Engineering Depament is responsible for monitoringthe discharge of pollutants and solid waste. At the same time, the Company attaches impoance to environmental managementhazard inspections, regularly inspecting various production links. For identied hazards, special rectication plans are formulated,responsible paies and completion deadlines are claried, eectively preventing and controlling environmental risks at the source.
Environmental Monitoring and Hazard Inspection
The Company has formulated system documents such as the Emergency Plan for Environmental Emergencies and the EmergencyPreparedness and Response Procedure, stipulating that the EHS Depament of the Base Operations Center is responsible for formu-lating and implementing emergency response plans to ensure clear responsibilities and orderly response. At the same time, theCompany tests the feasibility and eectiveness of emergency plans through drills and continuously optimizes emergency mecha-nisms based on drill results, eectively improving overall emergency response and risk control capabilities.
Emergency Plans and Drills
Cstal-Optech strictly monitors emission indicators for various pollutants and waste, sets annual environmental targets, and regu-larly tracks target completion to drive continuous improvement in environmental management.
During the Repoing PeriodThe Company conducted 7 special environmental protection inspections and 14 environmental hazard inspections,achieving a 100% hazard rectication rate.
During the Repoing Period
Cstal-Optech and its subsidiaries organized a total of 5 environmental emergency drills.
With the increasinglystrict environmentalprotection policies andregulations of thegovernment, theCompany may face highnes and litigationcompensation if there isnon-compliantdischarge.
May face highnes andlitigationcompensation,increasingoperating costs
Risk/Oppounit
Type
CountermeasuresRisk/Oppounity
Description
Likelihood ofOccurrence
ImpactTimeframe
Expected FinancialImpact
Risk
PolicyRisk
High
ShoTerm
Timely pay attention to and strictlyabide by relevant laws andregulations on pollutants and waste;Timely maintain and updateenvironmental protection facilities;Regularly car out environmentalhazard investigation and strengthenenvironmental monitoring.Reduce water resourceconsumption andwastewater dischargethrough measures suchas wastewater reuseand water-savingtechnologies; upgradeand replace waste gastreatment equip-ment/technology toreduce waste gasemissions; improveresource utilizationeciency and reduceresource waste throughwaste classication,recycling and reuse.
Reducedoperating costsOppounity
TechnologyOppounity
HighLong Term
Optimize the production process,introduce advanced technologies andequipment to reduce the discharge ofpollutants and waste;Strengthen the resource utilization ofwaste to achieve ecient resourceallocation and benet transformation.
Target ContentAchievement StatusZero pollution incidents related to waste gas, wastewater, and noiseZero illegal disposal of solid waste (including hazardous waste),
100% recycled by qualied unitsZero illegal disposal of waste containers, 50% container recycling rate
AchievedAchievedAchieved
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Low-Carbon Actions,Green Development
Environmental Protection TrainingEnvironmental Protection Knowledge Competition
4950
Pollutant Emissions
In October 2025, Cstal-Optech conducted trainingon the operation and management of the wastewa-ter treatment station. The training aimed to equipemployees with the core essentials of daily opera-tion, monitoring, and adjustment of the wastewatertreatment system, as well as familiarize them withthe maintenance procedures of key equipment,ensuring the normal operation of the Company’swastewater treatment system.
Wastewater Treatment Station Operation and Management Training
Training on Operation and Management of Sewage Treatment Plant
Environmental Training and PublicityCstal-Optech continuously carries out diverse environmental training and publicity activities. Training content covers environmen-tal regulation interpretation, environmental concept promotion, and learning relevant operating procedures. The Company inte-grates environmental concepts into daily work and behavioral norms by displaying posters, playing promotional videos in oceareas, and combining them with oine special lectures.
Cleaner ProductionBy upgrading core processes such as coating, cleaning, and etching, introducing ecient and low-consumption technologies, andestablishing reclaimed water reuse systems, the Company continuously improves resource utilization eciency and reduces wastegeneration. In 2023, the Company conducted a cleaner production audit and successfully passed the acceptance, implementing atotal of 21 cleaner production plans with a total investment of over 5 million yuan, eectively reducing pollutant emissions, energyconsumption, and material consumption, achieving the expected emission reduction and energy-saving goals. In 2025, Cs-tal-Optech obtained Sony’s Green Paner ceication. In the future, the Company will continue to improve cleaner productionmanagement and promote the greening of production processes and resource recycling.
Wastewater ManagementTo strengthen wastewater management, the Company has formulated systems such as the Wastewater Management Measures, theGroundwater and Soil Pollution Prevention and Control Measures, and the Rainwater Pollution Discharge Control Procedure. The EHSDepament of the Base Operations Center is responsible for measuring pollutant emissions in wastewater during production. Thewastewater generated by the Company mainly comes from cold processing and cleaning processes in various stages. In daily opera-tions, we continuously strengthen the construction and operation management of wastewater pollutant prevention facilities, focus-ing on reducing waste liquid generation at the source. By optimizing cutting layouts, canceling pre-cleaning processes, and increas-ing the loading rate of cleaning baskets, we eectively reduce the generation of wastewater and waste liquid.
Cstal-Optech resolutely implements the Environmental Impact Assessment and the “Three Simultaneities” system (environmentalprotection facilities designed, constructed, and commissioned simultaneously with the main project). It paicipates in emissionstrading according to law and systematically monitors the discharge of wastewater, waste gas, and noise by formulating and publish-ing self-monitoring plans for the environment and entrusting third paies for regular testing. During the Repoing Period, all keypollutant discharge units of the Company achieved stable compliance, with no major environmental safety accidents or exceedanceincidents, and no impact on employees or surrounding residents.
Unit2025
Pollutant MonitoringCompliance RateConcurrent Operation Rate ofEnvironmental FacilitiesImplementation Rate of“Three Simultaneities”for Construction Projects
2024
2023
%%%
Indicator
Unit2025
Wastewater Discharge VolumeChemical Oxygen Demand (COD)Ammonia Nitrogen (NH?-N)
Total Nitrogen (as N)
1,872,486.02
311.03
2.46
8.73
20241,622,847.23
354.41
2.01
6.59
20231,707,410.82
223.75
3.71
7.70
TonTonTonTon
Indicator
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Low-Carbon Actions,Green Development
CaseStudy
5152
Waste Gas Management
The Company has formulated the Waste Gas Management Measures, establishing and updating the “List of Waste Gas EmissionSources” to ensure systematic and standardized emission control. The Company’s waste gas mainly originates from product manu-facturing processes. Currently, 8 sets of waste gas treatment facilities are installed, using processes such as activated carbonadsorption and acid/alkaline scrubbers for centralized treatment. During the Repoing Period, through the phase-out of projectsinvolving sapphire LED substrates, spherical lenses, and AR projection engines, the Company reduced waste acid by approximately60 tons for the year and reduced VOC emissions by 1.744 tons/year.
Waste Management
Cstal-Optech has formulated the Industrial Solid Waste Management Measures. The General Manager’s Oce, Supply ChainCenter, EHS Depament of the Base Operations Center, and Logistics Depament of the Base Operations Center paicipate in theCompany’s solid waste management. The EHS Depament of the Base Operations Center is responsible for classifying and regularlyupdating industrial solid waste, formulating management specications, conducting training and publicity, and proposing specicmeasures to reduce the generation of industrial solid waste and promote comprehensive utilization. In 2025, the total amount ofwaste recycled and reused by the Company was 1,613.51 tons, accounting for 53% of the total waste.
Unit2025
Waste Gas Emission VolumeVolatile OrganicCompounds (VOC)
3.418
0.84
2024
3.814
2.421
2023
3.384
2.225
TonTon
Indicator
Waste Compliance Disposal
The Company strictly classies and stores waste according to the National Catalogue of Hazardous Wastes and entrusts qualiedunits for safe disposal. In daily management, the Company has established a comprehensive waste ledger and traceability mecha-nism, setting and regularly reviewing key peormance indicators such as reduction rate and recycling rate, continuously promotingsystematic and standardized solid waste management.
Noise ManagementNoise sources controlled by the Company include noise generated by the operation of production equipment such as air compres-sors, fans, pumps, and chillers, as well as noise from contractors’ construction activities within the plant area. We have formulatedthe Noise Management Measures, systematically identify and control noise sources from production equipment and constructionactivities, and adopt comprehensive noise reduction measures such as installing sound insulation facilities, adding silencers, andequipment vibration isolation to eectively reduce noise impact at the facto bounda.
Unit2025
?,???.???,???.???,???.?????.?????.????
2024?,???.???,???.???,???.?????.?????.????
2023?,???.?????.???,???.?????.?????.????
TonTonTonTonTon%
Indicator
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Low-Carbon Actions,Green Development
General WasteGeneration VolumeGeneral Waste Recycled/Reused VolumeHazardous WasteGeneration VolumeHazardous WasteRecycling and Reuse RateHazardous Waste Disposal Volume
General Waste Disposal Volume
5354
Governance
Cstal-Optech strictly complies with national laws, regulations, and rules such as the Energy Conseation Law of the People’sRepublic of China and the Water Law of the People’s Republic of China. It has formulated systems including the Energy ManagementSystem, Planned Water Use Management System, and Water Conseation Management System, clarifying depamental responsibil-ities and resource management requirements. The Company has established an Energy Conseation and Consumption Reductionorganization, led by the General Manager, with the Base Operations Center taking the lead in coordinating various Business Unitsand subsidiaries to implement the Company’s energy conseation and consumption reduction targets. The main types of energyused by the Company include natural gas, diesel, gasoline, electricity, and other clean energy sources; the production water used isprimarily municipal water supply.
To ensure the eective implementation of energy conseation and consumption reduction incentive measures, the Company hasestablished corresponding assessment indicators and supeision mechanisms. At the same time, the Company pays attention tocultivating the energy conseation and emission reduction awareness and capabilities of team members, and regularly holdsmonthly meetings on energy conseation and consumption reduction as well as energy conseation training to suppo the sus-tainable development of the Company.
Resource Management System
Cstal-Optech actively optimizes the energy structure, lays out clean energy projects, promotes ecient energy circulation andresource reuse; relying on the sma energy management platform, it realizes accurate metering and intelligent control of variousenergy consumption such as water, electricity and gas, and simultaneously promotes the elimination of high-energy-consumingequipment and technological transformation, continuously reducing production energy consumption.
Resource Management
In the BD stacking process, the Company previously used a combination of 2 dummy pieces + 8 product pieces + 2 dummypieces. To reduce dummy piece consumption, we optimized the combination to a new stacking mode of 1 dummy piece + 9product pieces + 1 dummy piece, achieving a 55.56% reduction in dummy piece usage per unit and reducing waste glassgeneration by 74 tons annually.
Energy Conseation and Consumption Reduction Organization Structure Cha
Reducing Waste GenerationBy promoting cleaner production and optimizing process ows, the Company reduces solid waste generation at the source whileactively exploring eective paths for waste resource utilization. We reduce the generation of by-products and waste emissions byselecting precise materials, controlling input quantities and reaction conditions; we increase the utilization of raw materials andreduce the generation of scraps by adjusting dicing process technology, thereby reducing waste emissions.
Waste Disposal PracticesSource Separation: Set up clearly labeled trash bins (e.g., recyclables, other waste) in productionworkshops and oce areas.Compliant Disposal: Cooperate with qualied renewable resource recycling companies for recyclables;entrust other general waste to local municipal sanitation depaments or compliant waste removalunits for transpo to waste-to-energy incineration plants.Storage and Transpo: Establish unied tempora storage points for general solid waste within theplant area, ensuring rain and seepage prevention to avoid seconda pollution; standardize theremoval process to prevent spillage.Non-Hazardous Waste
Accurate Identication and Classication: Identify hazardous waste according to productionprocesses, use special leak-proof closed containers for storage, and ax “Hazardous Waste Labels”conforming to national standards with clear information.Safe Storage: Set up independent “Hazardous Waste Tempora Storage Warehouses” conforming tonational standards, store dierent types of hazardous waste in separate areas, and strictly implementthe warehouse ent and exit registration system.Compliant Transfer and Disposal: Only entrust disposal to qualied units holding a Hazardous WasteOperation Permit with corresponding disposal capabilities; strictly implement the “Hazardous WasteTransfer Manifest” system; use professional disposal methods such as safe landll, high-temperatureincineration, physical-chemical treatment, and resource utilization (e.g., waste solvent recove andpurication) based on the nature of the hazardous waste.Emergency Preparedness: Develop special emergency plans for hazardous waste leakage, re, etc.;equip emergency supplies and organize regular drills to ensure rapid and eective response.Hazardous Waste
Energy Saving and Consumption Reduction Organizational Structure
General ManagerBase Operations Center
Account Business Unit ?Account Business Unit ?Customer Business Unit
Jingjing
Jingte
Research Institute
Jiangxi Crystal-Optech
Linhai Crystal-Optech
Yeshili
AutomotiveOptoelectronics
Vietnam Crystal-OptechBase Operations Center
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Low-Carbon Actions,Green Development
BD Stacking OptimizationCaseStudy
Cstal-Optech Energy Conseation Training
5556
Metrics and Targets
Cstal-Optech sets targets for reducing electricity consumption and water consumption per million yuan of output value, incorpo-rating them into the annual organizational peormance appraisal of each unit and breaking them down for implementation at alllevels.
Impact, Risk, and Oppounity ManagementCstal-Optech integrates factors related to resource utilization and circularity into the Company’s risk control system, ensuringconsistency with the Company’s energy and resource policy when planning the energy resource management system. The Companyestablishes energy use ledgers and the Seed Energy System to record and analyze energy consumption, identify and assess poten-tial risks and oppounities in the energy utilization process, formulate corresponding strategies and improvement measures, andtrack their implementation, thereby promoting continuous improvement in energy resource peormance and building a corporatecore with high energy utilization eciency and sustainable development potential.
Cstal-Optech anchors energy-saving practices as one of the core driving forces for the Company’s sustainable development. Byimplementing a series of scientic and reasonable energy-saving measures, the Company controls energy consumption at thesource, optimizes the energy utilization structure, and achieves a win-win situation for environmental and economic benets.
Strategy
The Company comprehensively sos out energy consumption data, equipment operation and maintenance ledgers, etc., combinedwith policy dynamics and market trend analysis, systematically carries out energy risk and oppounity identication, and forms a listof energy use risks and oppounities.
Energy Utilization
Rising energy priceswill require enterprisesto pay higher energycosts.
Increased
costs,reducedprots
Risk/Oppounity
Type
CountermeasuresRisk/Oppounity
Description
Likelihood ofOccurrence
ImpactTimeframe
Financial ImpactDescription
Risk
Market
Risk
MediumSho-term
Strengthen energy management, setreasonable energy consumptiontargets.Optimize energy usage structure,continuously promote photovoltaicpower generation.Analyze energy use rationality,promptly identify and addressanomalies in energy consumption.As the countemphasizes sustain-able development,enterprises can adoptadvanced productiontechnologies andequipment to reduceenergy consumptionand improve energyecienc eciency.
Cost reductionOppounity
TechnologyOppounity
High
Sho,Medium,Long-term
Continuously optimize productionprocesses.Build an energy management centerand implement a series of technicalenergy-saving projects.
Target ContentAchievement StatusReduce electricity consumption per million yuan of
output value by 3% in 2025 compared to 2024Reduce water consumption per million yuan of output
value by 10% in 2025 compared to 2024
AchievedAchieved
Unit2025
Natural Gas
GasolineDieselTotal Purchased ElectricityNon-fossil Energy ConsumptionOther Clean Energy UsageTotal Energy Consumption
11.11
26.10
13.10
197,468,200.00
4,597,890.00160,000,000.00
25,039.18
2024
11.42
29.12
10.92
196,744,594.00
4,115,910.2157,281,000.00
23,187.04
2023
Energy Consumption at Cstal-Optech Binhai Plant
16.41
22.8
3.12
199,241,400.00
3,489,630.0070,000,000.00
22,893.98
TonTonkWhkWhkWhTons of SCE
10,000Cubic Meter
Indicator
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Low-Carbon Actions,Green Development
Seed Energy Management System
Water Resource Utilization
Cstal-Optech’s production processes involve multiple stages, each with specic requirements for the quality and quantity of pro-duction water. For instance, in the manufacturing of optical products, processes like cleaning and dicing require substantial amountsof pure water and RO water to ensure product quality and precision. The cooling of production equipment also demands a consis-tent and stable water supply. To protect and rationally utilize the Company’s water resources, the Company implements water con-seation measures, increases the water recycling rate, and reduces fresh water consumption. At the same time, the Company usesthe Water Risk Filter tool developed by the World Wide Fund for Nature (WWF) to conduct water risk assessments at its variousoperating locations and formulates response plans based on the risk levels.
5758
Energy-Saving RetrotsCstal-Optech actively promotes energy-saving retrots through projects such as equipment renovation and upgrade, air condi-tioning system optimization, application of high-eciency equipment, energy recove and reuse, and application of high-eciencylighting, thereby reducing energy consumption. During the Repoing Period, the Company carried out over 70 energy-saving tech-nology retrots, including LED energy-saving tube retrots and independent dedicated pipe energy-saving retrots for sandblast-ing machines, saving over 8 million kWh of electricity.
Digital Management
Cstal-Optech promotes sma facility management by establishing systems such as the Seed Energy Management system and theBA Chiller Plant Group Control system. These systems enable automatic group control of chiller plants, automatic fault warning,automatic work order dispatch, maintenance reminders, automatic statistical repoing of energy metering, and online inspections,signicantly improving facility management work eciency and production stability, saving about 2.5 million yuan in electricity costsannually, saving about 3.6 million kWh of electricity annually, and reducing carbon emissions by 2,250 tons.
Promoting Water-Saving TechnologiesThe Company achieves water conseation goals through process optimization, introduction of water-saving equipment, andwastewater regeneration, thereby recycling water resources. In cleaning processes, advanced laser cutting technology replacestraditional dicing processes that require water. This includes the adoption of advanced ultrasonic cleaning technology and preciseconstant ow control, which enhances cleaning eciency while signicantly reducing water consumption. Concurrently, the Compa-ny actively introduces a series of advanced water production and conseation equipment, such as ultrapure water equipment,high-eciency cooling towers, and constant ow devices. During the Repoing Period, the Company implemented 25 water-savingprojects, including projects for recycling dicing water, reusing ultra-concentrated water, retrotting cleaning machines for constantow water saving, and reusing treated wastewater from the treatment station in cooling towers, saving over 600,000 tons of water.
The liquid nitrogen gasication process releases alarge amount of cold energy. The plant’s PCW systemrequires cooling. By directly exchanging the liquidnitrogen pipeline with the PCW hot water tank, thecold energy is fully recovered. After the retrot,approximately 1.5 million kWh of electricity is savedannually, reducing carbon emissions by about 937.5tons.
Picture after Transformation
Air compressors generate a large amount of heatwhen compressing air. The Company centrally recov-ers this heat for reuse, such as for supplying hotwater to dormitories. This saves approximately 1.5million kWh of electricity annually, reducing carbonemissions by about 937.5 tons.
Picture after Transformation
Cold Energy RecoveCaseStudy
Air Compressor Waste Heat RecoveCaseStudy
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Low-Carbon Actions,Green Development
Material Standardization TrainingCeication of Packaging Material Supplier
Circular Economy
Cstal-Optech actively explores and deeply cultivates the eld of circular economy, committed to building a comprehensive,multi-level circular economy ecosystem. The Company has formulated systems such as the Management Measures for Material CodeAddition, Classication, Change, and Retirement and the Provisions on the Utilization of Recycled Materials to strengthen materiallifecycle management. The Company establishes green design priorities during the product lifecycle stage. In the product R&D andproduction process, it actively adopts environmentally friendly, biodegradable, or recyclable materials. Through technological inno-vation and process optimization, such as precision cutting and automated propoioning, it maximizes material utilization eciencyand reduces environmental pollution. During the Repoing Period, the Company conducted material standardization training tofuher improve the standardization level of material management.At the same time, the Company has formulated systems such as the Management Measures for Packaging Material Recycling andReuse to strengthen packaging material management, formulate packaging design specications, actively recycle and reuse pack-aging materials, achieve lightweight and reduced packaging materials, and continuously increase the “green content” of the opticalindust.
Unit2025
Total Water WithdrawalWater Withdrawal IntensityRecycled Water VolumePropoion of Recycled Water inTotal Water Consumption
?,???,???.???.???,???,???.???
TonTon/10,000 yuanTon%
Indicator
Peormance
Distribution, Storage,
Transpo
Green Design FocusMaterial Circularity at Crystal-Optech
Reduce plastic andpackaging materialsPackaging materialrecycling and reuse
Product Lifecycle Stage
Increased the quantity per packaging box and eliminatedthe use of bubble wrap, saving 10% of packaging materialusage annually.Recycled approximately 350 tons of plastic Tray trays, 10tons of wooden pallets, and 50 tons of caons; reducingwaste generation by 410 tons in total.
Enhancing Water Conseation AwarenessThe Company organizes diverse water conseation training and publicity activities. Through methods such as holding water con-seation knowledge lectures, distributing water conseation publicity materials, and conducting water conseation competitions,it promotes water conseation education among employees and their families, advocates a civilized lifestyle of water conseation,and cultivates an awareness among all sta to cherish and protect water resources. It mobilizes all employees to paicipate in waterconseation activities, contributing more to the building of a water-conseing society and a water-conseing enterprise.
The composition of dicing wastewater mainly includes dispersants, RO water, glass debris, and UV tape. After ltering thepaiculate matter from the dicing wastewater using semiconductor inorganic membranes, the dicing water can be recycled.This project can save 300,000 tons of water per year, eectively reducing costs.
5960
Dicing Water RecyclingCaseStudy
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Low-Carbon Actions,Green Development
6162
Reduction of Disposable Products
Energy Conseation
Waste Soing
Green OceThe Company actively practices green oce principles. By issuing the Low-Carbon Living Initiative, it guides employees to saveelectricity, water, and paper, reduce unnecessa business travel, and continuously improve the ecological benets of the Company’soce operations.
Oce Areas: Make full use of natural light to reduce lighting time; ensure computers, printers, andother electrical equipment are promptly turned o when leaving the oce.Meeting Rooms: Improve meeting eciency, reasonably schedule meeting times, and reduce energyconsumption from equipment and air conditioning.Central air conditioning temperature in oce areas uniformly set to 26°C, with scheduled daily on/ofor energy saving.Use LED lights for lighting in plant areas, corridors, and basements.Use recycled water for ushing toilets in plant areas.Energy Conseation
Paper Conseation
Encourage eveone to choose public transpoation, bicycles, or walking for commuting. For neces-sa car trips, carpool as much as possible to reduce vehicle emissions.Reduce travel frequency, prioritize low-carbon travel methods such as high-speed rail when traveling.
Promote paperless oces to reduce paper usage. Circulate and save documents electronically when-ever possible. When printing documents, use double-sided printing to reduce paper waste.
Green Commuting
Advocate for all employees to take reasonable poions in the cafeteria to reduce food waste.Waste Reduction
Reduce the use of disposable cups and utensils within the Company, encouraging eveone to bring
their own water cups and tableware.
When purchasing equipment and oce supplies, prioritize energy-saving and environmentally friend-
ly types.Green Procurement
Reduce Disposables
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Low-Carbon Actions,Green Development
6364
TechnologyEmpowerment,Value Co-Creation
Our PhilosophyCstal-Optech adheres to an innovation-driven development strat-egy, coordinating R&D innovation, market expansion, product devel-opment, resource integration, and organizational and team buildingfrom a global perspective. It upholds responsible procurement prin-ciples, establishing a secure and reliable supply chain collaborationsystem. The Company implements full lifecycle product manage-ment, standardizes the use and handling of hazardous substances,and provides high-quality products to customers. It strictly fulllsthe prima responsibility for information security management toensure data security.
Our ActionsCommitment to R&D Innovation, Strengthening Supply Chain Man-agement, Responsible Procurement, Conict Mineral Management,Full Lifecycle Quality Management, Hazardous Substance Manage-ment, Optimizing Customer Seice, Information Security and Priva-cy Protection.Responded SDGs
6566
Cstal-Optech has established a comprehensive innovation management system, strengthening the foundation for innovationthrough IPD management methods, multi-R&D platform development, and talent cultivation. It also implements multiple R&D inno-vation initiatives, deepens indust-academia-research collaboration with fruitful results, and builds a robust intellectual propeymanagement system to strictly regulate processes and mitigate IP risks.
Innovative Management System
Cstal-Optech places high impoance on product innovation and technological R&D. The Board’s Strategy and Sustainability Com-mittee oversees and guides innovation and R&D management, with the Technology R&D Center seing as the dedicated depa-ment for innovation. The Company has formulated and implemented the IPD (Integrated Product Development) Management Mea-sures, focusing on market demand to continuously optimize investment pofolios. It streamlines cross-depamental collaborationthroughout the product development lifecycle, dening full-process controls such as TR1 demand review, TR2 project initiationreview, TR3 design review, TR4 technical review, and TR5 project closure review to eectively manage the entire R&D process.During the Repoing Period, Cstal-Optech, as a high-tech enterprise, established multiple R&D platforms, including the NationalEnterprise Technology Center.
The Company regards innovation team building as a core pillar of its technological innovation system. It has established a corporateuniversity platform with subordinate Leadership Academy and Engineering Academy to cultivate high-quality management teamsand senior engineers. Simultaneously, the Company continues to recruit top-tier scientic and technical talent, forming interdisci-plina internal innovation teams to maintain its technological leadership in a highly competitive market.
Innovation-Driven
Governance
Rapid changes inmarket demand mayrender developedproducts insucient-ly adaptable.There are manycompetitors in themarket, resulting insignicant competi-tive pressure.
Decreasedincome
CountermeasuresRisk/Oppounity
Description
Likelihood ofOccurrence
ImpactTimeframe
ExpectedFinancial Impact
Risk
Market
Risk
Medium
Medium tolong term
Strengthen the TR1 requirementreview phase in the IPD process, withBD deepening market research anddemand forecasting;Continue to develop new projects,strengthen cooperation with endcustomers, and increase marketshare.
Increased
incomeOppounity
Technological
Leadership
High
Sho tolong term
Increase investment in forward-look-ing R&D projects and accelerate thetransformation of technologicalachievements through the IPDprocess.
Risk/OppounityType
Technologicalbreakthroughs inoptical interaction,micro-nano optics,and other elds havespurred demand fornew products;The Companypossesses world-classproduction equip-ment capable ofmeeting producttesting requirements.
R&D Innovation Organizational Structure Cha
Technology R&D Center &Central Research InstituteTechnology
PlanningDepament
Thin FilmInstitute
XR Institute
Silicon DreamInstitute
Micro/NanoInstitute
AutomationResearchInstitute
Pilot Center
Considering the iterative nature of optical subeld technologies, shifts in market demand, and value chain dynamics, the Companyhas identied innovation-driven risks and oppounities, compiling the following list for process-based management.Strategy
Unit2025
Number of R&D PersonnelPropoion of R&D PersonnelR&D Team
1,506
17.27
Person%
MaleFemale
1,101
PersonPerson
Bachelor’s DegreeMaster’s Degree or AboveAssociate Degree or Below
PersonPersonPerson
Indicator
By EducationalBackground
By Gender
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Technology Empowerment,Value Co-Creation
6768
“Cstal Class” Opening and Instrument Donation Ceremony
R&D Innovation Goals and Planning
R&D Investment
Target ContentAchievement StatusEstablish a patent review committee to improve patent quality andincrease the propoion of invention patents in applications (above 50%),
while phasing out low-value patents.Implement a PLM system to enhance R&D project eciency through
digitalization and gradually achieve process standardization.
In progressIn progress
Cstal-Optech integrates risk management into eve phase of project management. By identifying, assessing, managing, andmonitoring risks, unnecessa losses are minimized, ensuring business robustness and sustainability. Impact, Risk, and Oppounity Management
R&D Innovation Initiatives and Outcomes
The Company continuously improves its intellectual propey incentive mechanism, formulates systems such as the Patent and Soft-ware Copyright Management Measures, and provides corresponding material and spiritual rewards to employees who create, pro-tect, and utilize intellectual propey. The Company organizes multiple training sessions annually, encourages employees to activelyapply for patents, sets up special bonuses, and considers patents as an impoant factor in employee promotion, thereby stimulat-ing the innovation enthusiasm and potential of internal employees.
Encourage R&D Innovation
The Company has established platforms for technological innovation and knowledge sharing, including the National EnterpriseTechnology Center, Zhejiang Provincial Key Enterprise Research Institute for Thin Film and Micro-Nano Optical Technology, ZhejiangProvincial Thin Film and Micro-Nano Engineering Research Center, and Zhejiang Provincial Postdoctoral Workstation. During theRepoing Period, Cstal-Optech deepened the collaborative construction of indust-academia-research, panering with XiamenUniversity and Shaanxi University of Science and Technology to explore new paradigms of indust-education integration.On September 26, 2025, Cstal-Optech and Shaanxi University of Science and Technology initiated several core collaborations:
establishing the “Cstal-Optech” scholarship to incentivize outstanding students, donating advanced instruments to suppoteaching and research, and launching the indust-education integration reform class “Cstal Class” featuring “project-driven, jointresearch by teachers and students, and practical results.” Under the joint guidance of enterprise and university mentors, 35 stu-dents majoring in Applied Physics and Optoelectronic Information Science and Engineering deeply paicipated in real technicalprojects such as optical coating and optical intelligent sensing, enhancing indust adaptability through immersive practice.
Construct R&D Platform
Metrics and Objectives
Regularly identify internal and external quality risks and compile the 2025 Risk and Oppounity Evalua-
tion and Countermeasures Table. During the Repoing Period, two technical risks were identied in the
external environment dimension.
Assess identied risks to determine their likelihood, impact duration, severity, etc. During the Repoing
Period, the severity of technical risks was assessed as 5, with a frequency of 2, resulting in a medium
risk level.
Closely monitor project R&D progress, take timely and eective measures to control risks associated
with new product development, and continuously enhance the Company’s innovation capabilities.
Establish a risk monitoring mechanism to promptly identify and resolve potential issues.
Risk IdenticationRisk Assessment
Risk Management
Risk Monitoring
In 2025, Cstal-Optech’s R&D investment totaled 414.76 million yuan, an 1.71% year-on-year increase, withR&D investment accounting for 5.99% of operating revenue.
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Technology Empowerment,Value Co-Creation
6970
Intellectual Propey Protection
The Company strictly complies with relevant laws and regulations such as the Patent Law of the People’s Republic of China and theCopyright Law of the People’s Republic of China. It has established a specialized intellectual propey management institution andbuilt an intellectual propey management framework led by the general manager. The Company has formulated systems such asthe Intellectual Propey Protection Control Procedures and the Patent and Software Copyright Management Measures to encourageand protect inventions, and to standardize the Company’s patent application, patent management, patent rewards, copyright appli-cation, and other management processes and requirements. During the Repoing Period, the Company has passed the intellectualpropey management system ceication and obtained titles such as ‘National Intellectual Propey Advantage Enterprise’ and‘Zhejiang Province Intellectual Propey Demonstration Enterprise’.
Management SystemCstal-Optech focuses on the optical track, centering on core technologies such as thin-lm optics, optical cold processing, semi-conductor optics, and optical system design, and deploys in three major industries: consumer electronics, automotive optics, andAR/VR, building the second and third growth cues. Cstal-Optech is now a national manufacturing single champion demonstra-tion enterprise, one of China’s top 50 electronic materials companies, a Zhejiang Provincial Eagle Enterprise, a Zhejiang ProvincialInnovative Leading Enterprise, a Zhejiang Provincial Hidden Champion, a national high-tech enterprise, and a national intellectualpropey management advantage enterprise. By the end of the Repoing Period, the Company had paicipated in/formulated 6national standards, 2 indust standards, and 2 Zhejiang manufacturing group standards.During the Repoing Period, the Company won the 25th China Patent Excellence Award and was selected as a Zhejiang ProvincialEagle Enterprise and a Zhejiang Provincial Leading Enterprise in Private Economy Headquaers. Its technological innovation andindustrial upgrading capabilities were highlighted in the front-page repo of Xinhua Daily Telegraph, with two innovative productsselected for the 2025 “Zhejiang Manufacturing Excellence” and “Zhejiang Excellent Industrial New Products” lists.
R&D Achievements Showcase
Unit2025
Cumulative Number of Valid Patents
Number of Patent ApplicationsNumber of Valid PatentsPer Million Yuan of RevenueCumulative Number ofValid Invention PatentsCumulative Number ofValid Utility Model PatentsCumulative Number ofValid Design Patents
R&D InnovationAchievements
0.089
ItemItemItem/million yuan
Cumulative Number ofSoftware CopyrightsNumber of Software CopyrightsPer Million Revenue
Item/million yuanCumulative Numberof Trademarks
0.018
ItemItemItemItem
Item
Indicator
By Patent Type
Other IntellectualPropey
Intellectual Propey Management Organizational StructureIntellectual Propey Management
System Ceication
GeneralManager
ManagementRepresentative
TechnologyR&D Center
FinanceCenterCentralResearchInstitute
IntelligentManufacturingCenterHumanResourcesCenter
Supply ChainCenter
BusinessDevelopmentCenter
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Technology Empowerment,Value Co-Creation
7172
Supply Chain Management
Intellectual Propey Protection Training Scene
Technology Ethics
Governance
Cstal-Optech continuously optimizes the supplier management system, builds a dynamic risk control and win-win cooperationmechanism, establishes long-term panerships with strategic suppliers, jointly enhances the transparency and resilience of thevalue chain, and creates a responsible, ecient, and sustainable supply chain ecosystem.
Cstal-Optech has formulated regulations such as the Strategic Sourcing andSupplier Management Measures and the Procurement Delive and PeormanceManagement Measures, establishing a full lifecycle management approach forsupplier sourcing, qualication, evaluation, grading, peormance, and elimina-tion. The Supply Chain Center, as the coordinating depament at the grouplevel, is responsible for formulating the overall strategy and managementframework. Its subordinate Strategic Sourcing and Supplier ManagementDepament (hereinafter referred to as the “Supplier Management Depa-ment”) is responsible for overall management; the Cost Management Depa-ment is responsible for reviewing the rationality of procurement costs andcoordinating cost reduction targets; the Centralized Procurement Depamentis responsible for strategy formulation and supplier management for central-ized procurement materials. At the level of various business units and subsid-iaries, procurement BPs or procurement depaments are set up to handlesample development, order execution, delive follow-up, daily supplier man-agement, and cost reduction target implementation within their respectivebusiness units. They also collaborate with group functional depaments in sup-plier development and evaluation, forming an ecient cross-functional,multi-level collaborative management mechanism centered around the SupplyChain Center. In December 2021, Cstal-Optech obtained the AEO (AuthorizedEconomic Operator) ceication issued by Hangzhou Customs.
Cstal-Optech strictly adheres to current laws, regulations, and indust standards in its daily operations, technology applications,and related activities, maintaining a rm commitment to compliance. The Company’s business does not involve areas related totechnological ethics, and there are no potential risks arising from technological ethics issues.To fuher strengthen the awareness of intellectual propey protection among all employees and standardize intellectual propeymanagement, the Company organized specialized intellectual propey training during the Repoing Period. This helped employeesdeeply understand the key role of intellectual propey in corporate development and enhanced their ability to prevent intellectualpropey risks and comply with management requirements.
Intellectual Propey Protection Training
Cstal-Optech promptly applies for patents for its independent innovations, builds a comprehensive intellectual propey protec-tion system, and prevents infringement of its own intellectual propey. If any infringement is discovered, the Company will quicklycollect compliant evidence, take decisive measures to protect its rights, and resolutely defend its legitimate rights and interests.The Company deeply embeds intellectual propey management into the entire product development process. By purchasing com-mercial patent databases and regularly tracking indust patent trends, it conducts early patent risk warnings and designs avoid-ance paths for R&D. For hardware and software provided by customers involving intellectual propey protection, the Companystrictly requires customers to provide written authorization documents and uses them only within the permitted scope to avoidpropey disputes at the source. At the same time, the Company strengthens condential management to prevent unauthorizedpersonnel from accessing or disclosing related intellectual propey to third paies. In the procurement process, the Company clear-ly stipulates the ownership of intellectual propey generated by related operations in contracts with suppliers and signs condenti-ality agreements or adds condentiality clauses to prevent infringement of others’ trademarks, copyrights, patents, trade secrets,and other intellectual propey rights.
Protection Measures
AEO Ceication Ceicate
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Technology Empowerment,Value Co-Creation
7374
Cstal-Optech collaborated with a total of 2,426 suppliers nationwide. Among them, therewere 608 suppliers in Zhejiang, with a supplier localization rate of 25.1% and localized pro-curement accounting for 12.7%.
Strategy
We conduct two rounds of supplier onboarding and management procedure training for supply chain personnel to ensure all rele-vant sta understand supplier management processes and operational requirements.
Cstal-Optech systematically identies potential risks and oppounities in the supply chain, evaluates the eectiveness of existingsupplier onboarding, grading, and peormance management measures, continuously improves the end-to-end optimization mech-anism from sourcing to elimination, and enhances supply chain resilience to promote sustainable development.
Supplier Management Process
Based on the supplier status of procurement categories, such as supply capability andstability, response speed, seice and management level, price and payment terms, andthe number of suppliers, a supplier development plan is formulated.Develop through multiple channels, establish a list of qualied suppliers, and selectsuitable suppliers for sample inquiries.Supplier Development
Supplier Evaluation
An audit team composed of procurement, quality, and technical depaments conductson-site or document audits for new suppliers.Annual audits are conducted for qualied suppliers to optimize supply chain manage-ment and enhance overall competitiveness.Supplier onboarding is divided into three stages: tempora—assessment—qualied.Tempora suppliers can only transact for 1 month, while assessment suppliers cantransact for a 6-month assessment period. Qualied suppliers generally have no dura-tion requirements unless they are naturally or actively eliminated.During the 1-month transaction period, if the supplier meets The Company’s needs, thetempora procurement ocer can apply to transition the supplier to the assessmentstage.During the 6-month assessment period, if the supplier demonstrates stable quality,timely seice, and reasonable costs, the assessment procurement ocer can apply fora supplier review, and qualied suppliers can be upgraded to the qualied stage.
Supplier Classication
Suppliers are classied into ve levels—strategic, preferred, alternative, restricted, andeliminated—based on their R&D and production capabilities, bidding and cost reduc-tion abilities, willingness to cooperate, and collaboration peormance.
Supplier Onboarding
Supplier Peormance
Suppliers are evaluated across four dimensions: quality, delive, cost, and technology.Based on peormance evaluation results, suppliers are upgraded, downgraded, oreliminated.
Supplier Elimination
Develop a supplier elimination plan and elimination list.Suppliers that are eliminated or naturally phased out may submit an application toresume transactions, stating the reasons, which will take eect upon company approval.
Key raw materialsuppliers may haltproduction orexperience severedelive delays due tovarious factors,impacting theCompany’s productionplans and customerorder fulllment.
Reducedrevenue
CountermeasuresRisk/Oppounity
Description
Likelihood ofOccurrence
ImpactTimeframe
Expected Financial
Impact
Risk
SupplyChainDisruption
Risk
Medium
Sho to
medium
term
Develop and maintain qualiedalternative suppliers;Establish a safety stock strategy forkey raw materials;Sign capacity guarantee agreementswith strategic suppliers.
Gradually incorporate environmentalmanagement peormance intosupplier selection and evaluationcriteria;Collect supplier carbon footprintdata;Prioritize procurement of eco-friendlymaterials and energy-ecientequipment.
Increasedrevenue and
reducedoperational costOppounity
Buildinga GreenSupplyChain
HighLong term
Risk/OppounityType
Identify and prioritizegreen suppliers withoutstanding peor-mance in energymanagement andcarbon reduction, orencourage existingsuppliers to improveenvironmentalpractices, reducing theoverall environmentalfootprint of the supplychain to meet customerand market demand forlow-carbon products.
During the Repoing Period
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Technology Empowerment,Value Co-Creation
7576
Unit2025
Number of Suppliers With QualityManagement System CeicationNumber of Suppliers With Environmental
Management System CeicationNumber of Suppliers With Occupational Healthand Safety Management System Ceication
2024
2023
perperper
Indicator
Target ContentAchievements Status100% Signing Rate of the Supplier Social Responsibility Commitment Letter
100% Signing Rate of the Integrity and Clean Commitment Letter
Propoion of Tier I suppliers increased to over 33%100% Signing Rate of the Prohibited SubstancesNon-Use Guarantee Letter for A/B Class Suppliers
AchievedAchievedAchievedAchieved
Impact, Risk, and Oppounity Management
Supplier ESG Management
Indicators and Targets
The Company strengthens supply chain risk management by establishing a comprehensive risk management process to ensurestable and healthy supply chain operations.
Cstal-Optech continues to deepen the integration of ESG concepts into supply chain management, fuher improving a multi-di-mensional supplier evaluation system. Focusing on the three pillars of quality assurance, environmental safety, and social responsi-bility, the Company systematically promotes the sustainable development of the supply chain. The Company requires suppliers tosign the Supplier Social Responsibility Commitment Letter, which covers key responsibility areas such as environmental protection,health and safety, business ethics, and labor rights. For suppliers that fail to meet requirements, the Company proactively providesimprovement suggestions and urges them to implement corrective actions. For suppliers that still fail to meet standards after therectication period, corresponding elimination mechanisms are initiated. Additionally, the Company regularly organizes ESG trainingfor suppliers to communicate core ESG policies and requirements, continuously improving suppliers’ ESG management levels andjointly building a robust, responsible, and sustainable supply chain ecosystem.We conduct two rounds of online ESG training for suppliers to promote ESG concepts and related requirements, and send relevantcourse materials to suppliers, requiring them to internally synchronize the promotion. Conduct on-site audits of main and auxiliamaterial suppliers annually. Ensure suppliers meet the requirements of the three key elements: quality assurance, environmentalsafety, and social responsibility.Indicators
Objectives
Quality
Collect supply chain-related information, including but not limited to supplier information,logistics and transpoation information, raw material sources, etc. Based on the collectedethical information, identify risks.
Strengthen supply chain monitoring, promptly obtain supply chain-related information, andadjust and update risks based on actual conditions.
Use qualitative and quantitative methods to comprehensively assess the risks in the supplychain.
Develop countermeasures. For high-risk suppliers, consider establishing backup suppliers,increasing invento, etc.
Risk Identication
Risk Assessment
Risk Management
Risk Monitoring
Management
Process
Management Measures
ISO9001 Quality Management System (Con-sumer Electronics Product Ceication)IATF16949 Automotive Quality ManagementSystem Standard (Automotive ProductCeication)QCDS Supplier Periodic Evaluation SystemMaterial Acceptance StandardsAbnormal Feedback Process andClosed-loop Tracking SystemIntelligent Manufacturing and SystematicRequirements
ISO14001 Environmental ManagementSystemChemical Management (General Chemicalsand Hazardous Chemicals Management)Fire Safety and Emergency Management
Multi-dimensional Supplier Evaluation System
Environmental SafetySocial Responsibility
Human Rights RequirementsEnvironmental Assessment RequirementsConict Minerals ManagementInformation Security
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Technology Empowerment,Value Co-Creation
7778
Cstal-Optech adheres to responsible mineral procurement, strictly complies with the Responsible Minerals Initiative (RMI), theOECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conict-Aected and High-Risk Areas, and otherrequirements. The Company has formulated a Conict Minerals Control Policy to strengthen the procurement management of metalmaterials such as tantalum (Ta), tin (Sn), gold (Au), tungsten (W), cobalt (Co), and mica (Mica), enhance supply chain transparency,and ensure the traceability of minerals used in the supply chain.During the Repoing Period, the Company conducted mineral traceability for coating materials involving conict minerals (tin). Itdistributed conict mineral questionnaires based on the Conict Minerals Repoing Template (CMRT) principles issued by theResponsible Minerals Initiative (RMI) to all raw material suppliers, achieving a 100% traceability rate. No procurement of conictminerals occurred.
Responsible Procurement
Conict Minerals Management
Equal Treatment of Small and Medium-sized Enterprises
Suppliers sign the Supplier Social Responsibility Commitment Letter to ensure that the metals used in the materialsprovided to the Company do not originate from conict areas.Suppliers should impose the same conict mineral management requirements on their upstream suppliers.
Policy Requirements
Due Diligence
By 2025, the Company’s Supplier Social Responsibility Commitment Letter signing rate will reach 100%.
By 2025, the Company’s Integrity and Clean Commitment Letter signing rate will reach 100%.
Cstal-Optech consistently upholds the principles of mutual benet and honesty, implementing “transparent procurement” practic-es. We require all suppliers to sign an Integrity and Clean Commitment Letter, resolutely opposing commercial bribe, market mo-nopolies, and any other forms of unfair competition. We are committed to safeguarding the legitimate rights and interests of bothpaies, jointly fostering and maintaining a fair, competitive, healthy, and transparent market environment.
Cstal-Optech continuously promotes the construction of a green supply chain, prioritizing suppliers with environmental or socialresponsibility ceications at the source of the supply chain. In the procurement process, priority is given to products and seiceswith minimal environmental impact, high resource utilization, and compliance with environmental standards, increasing the propor-tion of ceied raw materials to fuher reduce the environmental impact in the supply chain and build a more sustainable businessmodel.
Cstal-Optech continues to deepen the construction of a big data management system for raw materials, leveraging digital tech-nology to optimize operational processes and enhance business eciency. The Company establishes and improves a supplier qualityanomaly system. When substandard materials are detected, the system can automatically issue real-time anomaly ales via SMSand other methods, helping the Company respond quickly and take targeted measures, thereby eectively ensuring the safety andreliability of the supply chain system.
Ethical Procurement
Green Procurement
Digital Procurement
Cstal-Optech is committed to building a diverse, inclusive, and win-win supply chain ecosystem, promoting collaborative growthacross the indust chain. In procurement and cooperation processes, the Company adheres to treating enterprises of all sizesequally, without setting dierentiated thresholds based on company size, and continuously provides equal business paicipationoppounities for small and medium-sized enterprises. We value the potential for collaboration with small and medium-sized enter-prises in areas such as technological innovation and seice responsiveness. Through specialized training, information sharing, andprocess suppo, we help them enhance their compliance management and sustainable development capabilities. During theRepoing Period, the Company did not engage in any overdue payments to small and medium-sized enterprises.
The Company uses the Conict Minerals Repoing Template (CMRT) and the Extended Minerals Repoing Template(EMRT) provided by RMI to conduct due diligence on identied suppliers.The Company veries the compliance of CMRT and EMRT questionnaires. If supplier responses are incomplete orincorrect, the Company requests re-submission or suppoing evidence.
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Technology Empowerment,Value Co-Creation
7980
Cstal-Optech ISO9001 QualityManagement System Ceication
Jiangxi Cstal ISO9001 Quality Management
System Ceication Ceicate
Xintaijia ISO9001 Quality ManagementSystem Ceication Ceicate
Quality Management Organizational Structure
SystemHazardous SubstancesManagementSystem Audit
Document Control
Incoming Material
Management
Testing Center
QualityAssurance
QualityInspection
Quality Management
Representative
Quality is the foundation of Cstal-Optech, and the spirit of craftsmanship drives the core of quality construction. the Companyupholds the quality management policy of ‘Customer satisfaction is our eternal pursuit,’ always focusing on customer needs, con-tinuously improving the product lifecycle management mechanism, steadily advancing the iteration and upgrade of product andseice quality, and fully enhancing customer satisfaction.
Quality Assurance System
Cstal-Optech strictly complies with laws and regulations such as the Product Quality Law of the People’s Republic of China and hasestablished systems like the Quality, Environment/HSF, and Occupational Health and Safety Integrated Management System Manualto ensure eective quality control at eve stage. As of the end of the Repoing Period, the Company had not experienced anymajor quality or safety incidents or large-scale quality and safety complaints.The Company continuously improves its quality system, striving to provide high-quality products and seices to customers. It hasobtained ISO9001 and IATF16949 quality management system ceications. The Company conducts annual internal quality auditsto promptly identify and address deciencies and potential issues in the quality management system, thereby continuously improv-ing its eectiveness and eciency.
Cstal-Optech has established a scientic and eective quality management framework. The Board’s Strategy and SustainableDevelopment Committee is responsible for guiding and supeising quality management work, while the Quality Management Rep-resentative is responsible for coordinating and overseeing all quality-related activities. Under the leadership of the Quality Manage-ment Representative, the Company has established ve modules: system, incoming material management, testing center, qualityassurance, and quality inspection, to achieve full lifecycle management of product quality.The Company includes quality improvement as one of its top ten tasks. The General Manager attends monthly quality meetings toreview quality KPIs, quality anomalies, and continuous improvement repos. Additionally, the General Manager sees as the direc-tor of the newly established Quality Technology Committee, with the Management Representative as the deputy director.
Product and Seice Safety and Quality
Governance
COT Vietnam ISO9001 Quality Management
System Ceication Ceicate
Cstal-Optech IATF16949 Quality ManagementSystem Ceication Ceicate
IQC (IncomingQuality Control)
OQC (Output/OutgoingQuality Control)IQC (IncomingQuality Control)
SQE (SupplierQuality Engineer)
HazardousSubstances TestingReliability TestingMetrologyManagementSQE (SupplierQuality Engineer)IPQC (ln-ProcessQuality Control)PQE (ProcessQuality Engineer)
CQE (CustomerQuality Engineer)
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Technology Empowerment,Value Co-Creation
Business Unit
8182
During the Repoing Period
The Company conducted1 quality risk assessment.
Unit2025Product Qualication Rate91.2
2024
88.8
2023Product Safety and Quality Indicators
86.6
%Indicator
Exchange rateuctuations andinternational tradeenvironment volatilityaect expobusiness;Incompleteidentication ofcustomer needs leadsto insucientproduct adaptation.The selectedthird-pay testinginstitutions lacksucient qualica-tions and capabilities,leading to testingerrors.
Decreasedincome
CountermeasuresRisk/Oppounity
Description
Likelihood ofOccurrence
ImpactTimeframe
ExpectedFinancial Impact
Risk
MarketRisk
Quality
Risk
Medium
Sho tomediumterm
Decreased
incomeMediumSho-term
Conve customer settlementmethods, improve overseas factoand oce layouts, and strengthencustomer demand review processes;Repeatedly analyze market trendsand ensure review procedures areAchieved before contract signing.
Increased
incomeOppounity
MarketOppounities
Large
Mediumtolong term
The Company establishes standardsto regulate the qualications andcapabilities of third-pay testinginstitutions, specifying ve testinginstitutions—SGS, CTI, Inteek, ITS,and PONY—for sample submission.
Risk/OppounityType
Growing demand inconsumer electronics,automotivephotonics, and otherelds, along withdeepened customercooperation, bringsmore businessorders.
Increase market development andnew project expansion eos whilecontinuously improving productquality;Respond quickly to customer needsand consolidate cooperativerelationships with high-qualityseice.
Target ContentAchievement Status
Product yield rate ≥ 90%Customer satisfaction score ≥ 88
AchievedAchieved
Cstal-Optech identies and evaluates risks and oppounities in the production process, formulating the 2025 Risk and Oppou-nity Evaluation Countermeasures Table. This systematically outlines core risks and oppounities in the Company’s internal andexternal environment, clarifying the scope of impact, nancial implications, and countermeasures for each item, providing strongsuppo for stable operations.
Strategy
Cstal-Optech continuously improves its quality risk management process, strengthening quality risk management through stepssuch as risk identication, risk assessment, risk response, and risk management.
Impact, Risk, and Oppounity Management
Indicators and Targets
The quality depament continuously tracks the dynamic changes of identied quality risks, monitoring the eective-ness of control through daily inspections, product sampling, and customer feedback collection. Each responsibledepament records the progress of risk responses as required and integrates it into the business continuity plan track-ing system.Referring to system documents such as the Risk and Oppounity Countermeasures Management Procedure, specializedcountermeasures are developed for assessed quality risks. The Company enhances overall quality control capabilitiesthrough quality training and BCP drills.Risk Management
Risk Response
Regularly identify internal and external quality risks and compile the 2025 Risk and Oppounity Evaluation andCountermeasures Table. During the Repoing Period, potential quality risks were identied in multiple procedures,including design and development, production, testing, and measurement resource management. These risks encom-pass scenarios such as missing self-inspections in production, improper product handling protection, defective rawmaterials, and incomplete identication of customer needs.Quantify various risks that the Company may face to form the 2025 BCP Risk Register, calculating the risk coecient(frequency × severity) from two core dimensions: frequency of occurrence and impact severity (scored 1-5), to clarifythe priority ranking of quality risks. During the Repoing Period, the severity of quality anomaly risks was assessed as5, the frequency of occurrence as 2, and the risk level as M (moderate risk).Risk Assessment
Risk Identication
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Technology Empowerment,Value Co-Creation
8384
Product Quality Management Initiatives
Cstal-Optech has established a quality management system covering the entire product lifecycle, spanning product design, pro-duction, and seice to ensure the delive of excellent quality. The Company strictly adheres to quality control standards, relying onadvanced process technology and precision testing equipment to ensure product compliance with quality requirements from rawmaterial inspection, production process control to nished product testing.
Full Lifecycle Management
Cstal-Optech has established a series of systems such as the Hazardous Sub-stance Management Regulations, Hazardous Substance Control Standards, Haz-ardous Substance Identication and Evaluation Control Procedures, and Hazard-ous Substance Testing Standards to build a comprehensive hazardous substancecontrol system. Through these systems, clear requirements are established toensure that the hazardous substance content in purchased materials, productionprocess controls, and nal products complies with domestic and internationallaws and regulations such as the EU REACH Regulation, EU RoHS Directive,Packaging and Packaging Waste Directive, Norway POHS Ban, and SS-00259Management Regulations on Hazardous Substances in Components and Materi-als, while also meeting customer requirements for hazardous substance control.As of the end of the Repoing Period, the Company has obtained ceication forthe Hazardous Substance Process Management System (IECQ QC080000).
Hazardous Substance Management
Based on its actual conditions, Cstal-Optech has built a digital quality management system suitable for its development, leverag-ing digital and intelligent systems to achieve comprehensive quality management. By collecting and analyzing various data from theproduction process in real time, the Company can quickly identify quality issues, accurately pinpoint their root causes, therebyimproving the eciency and accuracy of quality management and driving continuous optimization and upgrading of products andseices.
Digital Empowerment
Quality Management Process
Collect market demands and formulate product design specications
Product Development
Incoming Inspection
Select qualied raw material suppliers and conduct raw material inspections toensure material quality.
Production Quality Inspection
Strictly follow production process requirements to ensure production process quality.
Outbound Inspection
Conduct sampling inspections on nished products to ensure product quality meetsstandards.
Continuous Optimization
Collect customer feedback and promptly address any quality issues.Continuously optimize the product quality management process based on marketfeedback.
IECQ QC080000 Ceication Ceicate
ERP System
Through this system, the Company manages the purchase, stor-age, and inspection of raw materials, ensuring supply security andquality control.
MES System
Through real-time data collection, monitoring, and analysis, theMES system enhances product quality and traceability, providingstrong suppo for ecient management.Digital Cloud
Platform
Real-time monitoring of quality data enables rened control overdierent stages, timely identication and resolution of qualityissues in the production process, and eectively improves productquality.
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Technology Empowerment,Value Co-Creation
8586
During the Repoing Period
The Company conducted21 quality training sessions, totaling 72 hours, with a total of 1,442paicipants.
FMEA TrainingOld QC Seven Tools Training
IATF16949 System and Internal Audit Skills TrainingVDA Core Tools Training
Quality Bootcamp Classroom
Customer Seice Management
Enhancing Product Accessibility
Cstal-Optech has established a customer management system centered on the Control Procedure for Processes Related to Cus-tomers, dening the responsibilities of each depament in customer management to ensure standardized and orderly execution ofcustomer-related processes. The marketing depament, as the centralized depament for customer seice management, coordi-nates the entire process of pre-sales, in-sales, and after-sales seices. Pre-sales activities include technical consultation and prod-uct promotion; in-sales activities involve tracking order execution and promptly communicating any anomalies; after-sales activitiesare responsible for handling customer complaints and returns management.
Customer Seice Management System
During the Repoing Period, the Company focused on the core needs of product quality control and systematically advanced quali-ty training in accordance with the 2025 Annual (Quality + System Depament) Training Plan, covering core modules such as qualitysystems, key processes, and testing standards. The training was tailored to the dierentiated needs of personnel in R&D, produc-tion, procurement, and other roles. Additionally, the Company established a 3-month “Quality Bootcamp” aimed at helping qualityassurance personnel master core quality management tools and methods, improve on-site problem analysis and resolution capabili-ties, and achieve the transition from theo to practice.
Product Quality Training
During the Repoing Period, Cstal-Optech focused on upgrading its laborato- capabilities. In October 2025, its Failure Analysis and Materials Research Lab-orato passed the review conducted by the China National Accreditation Ser-vice for Conformity Assessment (CNAS) and obtained the ISO/IEC 17025 accred-itation ceicate for testing laboratories. The laborato is equipped with over100 advanced instruments, both domestic and international, including SEM,FIB-STEM, FT-IR, GC-MS, white light inteerometers, and environmental reli-ability testing equipment. This has established a comprehensive technicalclosed-loop process covering “metrological calibration—material physical prop-ey testing—failure analysis—optical peormance testing—reliability verica-tion.” It enables precise tracing of failure origins at the nanoscale, providingscientically rigorous solutions for product iteration and upgrading. Throughdeep integration of CNAS standardization requirements with the LIMS, a six-di-mensional management system encompassing “personnel, equipment, materi-als, methods, environment, and testing” has been built, ensuring that eve setof data is accurate and traceable, and eve conclusion is professional and reli-able. This lays a solid technical foundation for the high-quality development ofits four core businesses.
Product Testing Capability Development
Cstal-Optech enhances product accessibility through collaborative optimization across the entire value chain. Guided by marketdemand, it leverages a robust R&D system and supply chain management mechanisms to ensure stable supply of raw materials andecient production operations. It optimizes capacity layout and delive processes, establishes a business continuity assurancesystem, and simultaneously, through the deployment of overseas factories and oces, shoens the geographical distance withinternational customers. Coupled with ecient logistics coordination and customer seice responsiveness, products reach domes-tic and international customers more quickly and reliably.
ISO/IEC ????? Testing Laboratory
Accreditation Certi?cate for theFailure Analysis and Materials
Research Laboratory
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Technology Empowerment,Value Co-Creation
8788
During the Repoing PeriodThe Company distributed30 customer satisfaction questionnaires, with a customer satisfac-
tion rate of 89.7points.
During the Repoing Period
The Company received292 customer complaints, with a complaint resolution rate of 100%.
Complaint Handling Process
Complaint Reception and Escalation
Record key complaint information (product model, batch number, tracking number,issue description, etc.);The email delivers information to the heads of quality and manufacturing, as well asthe on-site quality engineers.Respond according to the 8D process, formulate and implement sho-term measureswithin 1 working day;Complete testing, root cause analysis, implementation and verication of improve-ment measures within 3 working days (2 working days after receiving the sample);Complete the 8D and respond to the customer within 5 working days (4 working daysafter receiving the sample), with medium- and long-term measures implementedwithin 1 month (priority given to meeting special customer time requirements);When quality issues cannot be resolved in the sho term, submit an improvementplan and update it regularly.Complaint Handling
Tracking Verication
Improvement measures require continuous tracking and verication for 3 months or 3batches;Major customer complaint measures are included in the CAPA list, reviewed eve 3months, closed after 3 consecutive qualied reviews, and the responsible depamentmust respond within 5 days.
Customer Seice Management Initiatives
Communication Channel Development
In terms of daily communication, the marketing depament has established a mechanism for monthly customer exchange meetings.By preparing the Monthly Customer Visit Implementation Form, customer visits are carried out as planned. At the same time, usingtools such as Quotation Sheets, emails, and phone calls, it standardizes information transmission throughout the entire process,including product inquiries, quotation communication, and order follow-up, ensuring consistency between oral communication andwritten records. For special customer requirements, approval is initiated through the “OA workow” and a List of Special CustomerRequirements is created, which is then synchronized with relevant depaments to ensure information alignment without deviation.
Customer Satisfaction SueyCstal-Optech conducts annual customer satisfaction evaluations, coordinated and implemented by the marketing depament.After the customer satisfaction suey is Achieved, the marketing depament compiles and forms the Customer Satisfaction Evalua-tion Form, which is simultaneously communicated to the heads of each business unit and the leaders of the marketing depament.The head of the marketing depament will conduct specialized analysis and formulate improvement measures based on customersuggestions and related issues; if necessa, organize relevant depaments to jointly discuss and form a specialized improvementrepo, followed by continuous tracking of the implementation of improvement measures to optimize customer seice and steadilyimprove customer satisfaction.
Product Recall
Complaint Response Mechanism
Cstal-Optech has formulated the Management Measures for Customer Complaint Handling, which denes the responsibilities andspecic operational methods for receiving, processing, transmitting, and implementing measures related to customer complaints. Bypatiently accepting, diligently handling, and actively responding to customer complaints, it collects relevant information and dataabout the market, customers, and products, and formulates quality improvement measures to achieve continuous improvement incustomer management and customer seice.
Product Recall MechanismOperation Method
Receive abnormalcustomer feedbackQuality complaint
Repo to management
representativeMark and isolatematerials/products
Collect abnormalinformationQuality Depament/
GP Specialist
Recall products fromcustomers and the marketScrap and destroy
Conduct horizontal investigationto trace aected material(product) batches
Conrmation of abnormal resultsSend to testing center orthird-pay organization for testing
The Company has established a standardized product recall managementmechanism. When HSF test failures, reliability test failures, or other qualityissues that may aect customer use occur, and the non-compliant productshave been shipped to customers, the product recall process will be initiated.After conrming the non-compliance, the quality depament immediatelyorganizes the tracing of involved raw materials, semi-nished products, andnished product batches, claries the recall scope and quantity, and themanagement representative must notify the customer within 3 hours, detail-ing the core information such as the materials involved in the non-compli-ance, invento status, work-in-progress, and shipment status, and takemeasures such as product recall or other methods approved by the custom-er. During the Repoing Period, the Company’s product recall rate was 0%,and no large-scale product recall incidents occurred.
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Technology Empowerment,Value Co-Creation
8990
Cstal-Optech regards the continuous protection of information security as a key measure to safeguard customer rights andenhance the Company’s core competitiveness. The Company fuher strengthens the construction and management level of itsinformation security system, implements network and data security responsibilities at all levels, and ensures the continuous andstable development of all business operations in a secure, ecient, and robust manner.
The Company strictly complies with laws and regulations such as the Cybersecurity Law of the People’s Republic of China, DataSecurity Law of the People’s Republic of China, and Personal Information Protection Law of the People’s Republic of China. It hasestablished and continuously improved systems such as the Information Security Management Manual, Network Information Security
Data Security and Privacy Protection
Customer Key Information Management Tool Training
Information Security Management System
Cstal-Optech, in accordance with procedural management documents such as the Computer Room Security Management Systemand Vulnerability Scanning Measures, addresses multiple aspects including information system management, physical environmentmanagement, and information security training to provide solid safeguards for the Company’s information security management.
Routine Information Security Governance Measures
Main MeasuresCatego
Data backup is peormed, and the responsible person for data sources must dailycheck whether the data they are responsible for has been backed up, promptly orga-nize backup les, and record any abnormal backup events.Disaster recove plans are established to ensure that business systems and data canresume normal operations after major security incidents.Data Security Management
Vulnerability scans are conducted on the Company’s main system hosts, and timelyrepairs are made.Computer virus checks are peormed, and the operation of computer equipment isregularly inspected.Condential les are encpted to prevent internal company data from being leaked.VPN multi-factor authentication is implemented to ensure data security.Permissions for OA accounts (external access), enterprise email accounts, and othercommunication software, as well as the internal network (referring to external com-puters accessing the Company’s LAN), must be applied for via an application form.System Security Management
Computer Room Environment Management
Regularly inspect power supply, electrical equipment, reghting facilities, etc., andresolve any issues promptly.Regularly inspect and organize physical connection lines of hardware, and check theoperational status of hardware (e.g., device indicator lights, meters).Regularly arrange computer network security training to strengthen the concept ofcomputer network security.Regularly arrange for network administrators to paicipate in relevant computernetwork security training to improve their network management capabilities.Information Security Training
Specialized Customer Seice Training
To improve employees’ customer seice standards, during the Repoing Period, the Company conducted training on customer keyinformation management tools for business personnel in the business development center, using a combination of online and oinemethods to help business personnel master the use of the tools, improve the eciency and accuracy of customer information pro-cessing, and fuher standardize the customer seice process.
Management System, and IT System Permissions and Software Usage Management System, stipulating that the IT managementdepament is responsible for the security of computer network equipment, suppoing facilities, information, and operational envi-ronments. In accordance with the Condential Area Security Management Measures, the Company requires information security spe-cialists to organize relevant personnel monthly (or at frequencies instructed by clients) to audit existing condential areas, securitysystems, infrastructure, security equipment, and operations using the “Information Security Audit Checklist”. On-site audits are con-ducted through inteiews, questions, document/record reviews, and site inspections with responsible personnel, collectingevidence and maintaining on-site audit records to accurately reect objective facts. Meanwhile, the Company has established aclear information security reward and punishment mechanism under the Information Security Reward and Punishment ManagementProcedures, penalizing employees who violate information security policies and procedures and rewarding those who eectivelyprevent information security incidents. This reinforces the information security awareness of all employees and prevents the occur-rence of information security incidents. As of the end of the Repoing Period, the Company has not experienced any data securityincidents.
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Technology Empowerment,Value Co-Creation
9192
In October 2025, Cstal-Optech conducted its second-half 2025 network security emergency response drill. The drill’sobjective was to fully execute the emergency response process from incident discove to nal review, successfully containsimulated attacks, and restore business operations. This emergency response drill tested the feasibility and eectiveness ofthe Security Emergency Response Plan, enhanced the collaborative combat capability, decision-making ability, and commu-nication eciency of the emergency response team under pressure, and increased security awareness among all employees.
Cstal-Optech has formulated a series of policy documents, including the Emergency Management Procedure for Information Sys-tems, Network and Information Security Emergency Plan, and Management System for Data Backup, Disaster Recove, and Drills.This establishes a scientic, ecient, and rapidly responsive emergency working mechanism, reasonably prevents risks during theuse of computers and information systems, and minimizes and mitigates network and information security emergencies and thedamage they cause. Based on factors such as the nature, severity, controllability, and impact scope of the incident, the Companyclassies its information security incidents into two levels: company-level and depament-level. Dierent emergency plans areformulated for each level to ensure that network information faults are detected, repoed, and addressed early.The Company’s IT management depament decides on and deploys emergency management work for unexpected events. When anetwork and information security emergency occurs, the Company quickly initiates an emergency response, takes eective mea-sures to control the development of the situation, and summarizes and analyzes the incident afterwards to learn lessons and contin-uously improve the emergency response mechanism. This continuously enhances future response capabilities and minimizes thevarious impacts that data security incidents may cause.
Emergency Incident Management
To systematically implement customer privacy protection, Cstal-Optech has established a series of internal control policies,including the Market Information Condentiality Management System, which clearly denes the scope of condentiality, classica-tion levels, and management responsibilities. The Company adopts multi-layered protection measures, including but not limited to:
using code names for customer information, avoiding the direct use of full customer names in daily communications and docu-ments; adding condentiality statements and warnings when transmitting condential documents externally; conducting exit auditsand continuous monitoring for personnel in key positions; restricting the use of unauthorized storage devices through technicalmeans to prevent data leakage; and strictly controlling access rights to condential areas to reduce information exposure.The Company always adheres to the principles of legality, justication, and necessity when handling customer information, continu-ously improves its information security management system, eectively safeguards customer privacy rights, and maintainslong-term trust and cooperative relationships with its customers.
Customer Privacy Protection
Phishing Email Prevention Guide Training
Information Security Compliance Training
Network Security Emergency Response DrillCaseStudy
During the Repoing Period
The Company conducted a total of189 information security training sessions.
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Technology Empowerment,Value Co-Creation
9394
Our PhilosophyCstal-Optech has always adhered to the core value of “peo-ple-oriented” and places high impoance on the protection of em-ployees’ rights and interests. the Company prioritizes the safety andphysical and mental health of employees, strives to create a diverse,inclusive, equal, and safe working environment, and provides em-ployees with broad career development platforms and diversegrowth oppounities, fostering synergy between individuals and theCompany to create value together.Our ActionsEnsuring Occupational Health and Safety, Protecting Employees’Legal Rights, Focusing on Employee Training and Development,Practicing Democratic ManagementResponded SDGs
People-Oriented,Uniting forCommon Progress
9596
Cstal-Optech adheres to the safety production policy of “Safety First, Prevention Focused, Comprehensive Management” and theoccupational health and safety policy of “Building a Harmonious Living and Working Environment.” It upholds the safety manage-ment concept that “hidden dangers are accidents,” conscientiously implements laws and regulations such as the Work Safety Law ofthe People’s Republic of China (hereinafter referred to as the Work Safety Law) and the Law of the People’s Republic of China onPrevention and Control of Occupational Diseases, continuously improves the occupational health and safety production manage-ment system, implements the work safety responsibility system, strengthens safety education, and safeguards employee safety andhealth.
The Company has established a safety management organizational structure with clear responsibilities, comprehensively overseeingsafety matters at the organizational level, supeising the implementation of safety work and the achievement of safety goals, andadhering to the bottom line of work safety. To ensure the implementation of work safety responsibilities at all levels and strengthensafety awareness at all levels, the Company signs work safety target assessment responsibility letters with employees and businessunits. During the Repoing Period, the Company signed a total of 7,821 work safety target assessment responsibility letters.The Company strictly follows the Regulations on the Management of Work Safety Targets and Assessment to promote the standard-ized management of safety work, ensuring that safety work in all units has goals, behaviors have standards, assessments have crite-ria, and rewards and punishments have a basis.
Safety and Health Management System
The Company has formulated a series of health and safety production policy documents, including the Work Safety ManagementSystem, Work Safety Responsibility System, Work Safety Reward and Punishment System, and Comprehensive Occupational HealthManagement System. These documents strengthen the management and prevention of potential hazards in the production processand promote the construction of the safety system. During the Repoing Period, the Company obtained ISO 45001 OccupationalHealth and Safety Management System ceication and received the Ceicate for Level II Enterprise in Work Safety Standardiza-tion. Its branches and subsidiaries, Jiangxi Cstal-Optech, Xintaijia, Jingte Optics, and Yeshili, have all passed the occupationalhealth and safety management system ceication.
Occupational Health and Safety
Governance
Responsible for organizing the formulation and implementation of overall and annual worksafety targets, and assessing the results of work safety targets.Responsible for formulating annual work safety targets, indicators, implementation plans,and assessment methods, as well as conducting inspections, monitoring, and assessments.Responsible for implementing the work safety target and indicator implementation planswithin their respective units; responsible for promoting and training on work safety targets,indicators, implementation plans, and assessment methods within their units; responsiblefor the decomposition and assessment of work safety targets and indicators within theirunits.
Company’s Principal Person in Charge
EHS Depament of the Base Operations Center
Functional Centers, Business Groups
OrganizationResponsibilities
Cstal-Optech Occupational
Health and SafetyManagement System Ceicate
Cstal-Optech Level II Enterpris in Work SafetyStandardization Ceicate
Jiangxi Cstal-Optech Occupational Health
and Safety Management System
Ceication Ceicate
Jingte Optics Occupational Health
and Safety ManagementSystem Ceication Ceicate
Yeshili Occupational Health andSafety Management SystemCeication Ceicate
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
People-Oriented,Uniting for Common Progress
9798
The Company assesses and identies potential risks and oppounities in its production processes and environment, and providescorresponding countermeasures to reduce potential risks and improve management eciency.
Strategy
The Company has formulated systems and procedures such as the Control Procedure for Hazard Identication and Risk Assessment,Emergency Preparedness and Response Procedure, and Emergency Preparedness and Response Management Measures, forming acomplete management process to eectively identify, assess, and manage safety risks hierarchically.
Impact, Risk, and Oppounity Management
CountermeasuresRisk/Oppounity
Description
Likelihood ofOccurrence
ImpactTimeframe
Expected FinancialImpact
Risk
Occurrence ofoccupational health orwork safety accidentsmay lead to a declinein the Company’soperational eciency,and in severe cases,may cause businessinterruption.
Increasedoperating costs /
nesOperationalRisk
MediumSho-term
Establish standard procedures forhazard identication, prevention,rectication, and management tocontrol related risks in a timelymanner.
Oppounity
Occurrence ofoccupational healthor work safetyaccidents may lead toa decline in customertrust, aectingmarket share.Reputational
Risk
DecreasedoperatingincomeLowLong-term
Formulate work safety plans andensure proper emergency responseto work safety accidents; discloseaccident handling informationpromptly and transparently.Optimizing nancialbudgets andmanagementprocesses related tooccupational healthand safety willimprove theCompany’s overalloperational eciencyand reduce accidenthandling time andcosts.
ManagementEciency
ReducedexpensesHighMedium toLong-term
Optimize internal processes,strengthen risk assessment andhazard investigation, and improveresponse speed; invest in R&D orintroduce advanced safety manage-ment systems and technologies toenhance the eciency of occupation-al health and safety management.
Risk/OppounityType
Reduced labor
costsHealthyandStableProductivity
High
Medium toLong-term
Strengthen safety education, training,and promotion; regularly conductoccupational health monitoring;continuously optimize the workplaceenvironment and increase investmentin protective facilities.
Providing a healthyand safe workingenvironment foremployees helpsreduce the risk ofemployee inju,reduces absenteeismdue to illness, andimproves employeestability, sustainabili-ty, and workeciency.
Identify hazards by business unit, operation, and product catego, and provide control measures; updatehazard sources annually, tracking the number of newly identied, reduced, and eliminated hazards.Risk Hierarchical Control
Formulate the Work Safety Inspection and Hazard Investigation and Rectication System; conduct monthlysafety hazard investigations and implement closed-loop management for hazard rectication; disclosehazard investigation data, including trend chas of the number of veried safety hazards, distributionchas of hazard types, and hazard rectication tracking tables, and conduct hazard type analysis. Duringthe Repoing Period, the Company organized 185 hazard investigations, identied 835 hazards, all ofwhich have been rectied, achieving a 100% rectication rate.
Formulate Emergency Plans for Work Safety Accidents, including specic emergency plans and on-sitedisposal plans; strengthen the construction of emergency response teams and conscientiously car outemergency drills to eectively protect the safety of employees’ lives and propey. During the RepoingPeriod, a total of 14 safety emergency drills were conducted.
Emergency Plans
Management
Process
Management Measures
Hazard Investigationand Rectication
On May 30, 2025, ahead of the 24th National “SafetyProduction Month,” focusing on the theme of “Eve-one Talks about Safety, Eveone Knows How toRespond in Emergencies,” Cstal-Optech organized anannual comprehensive emergency drill at its Binhaifacility. All employees present at the park and supplierpersonnel paicipated in this event. This drill eectivelytested the practicality of various procedures in theCompany’s comprehensive emergency plans, honed theresponse and organizational capabilities of the emer-gency team, and improved the emergency avoidance,self-rescue, and mutual rescue skills of the employees.
Comprehensive Emergency Drill
On April 16, 2025, the Company organized a “Sudden Leak Accident Emergency Drill for Corrosive Chemical Spill” at the hazardous chemicalswarehouse, with a total of 52 paicipants. This drill eectively exercised the emergency rescue and handling capabilities of the emergencyteams, fuher standardized the procedures and content for information repoing and dissemination regarding sudden chemical leakincidents, and comprehensively enhanced the collaboration and response capabilities of various emergency groups in dealing with suddenchemical leaks.
Comprehensive Emergency Drill for Safety Production Month
Emergency Drill for Sudden Chemical Leak
CaseStudy
CaseStudy
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
People-Oriented,Uniting for Common Progress
99100
Unit2025
Total Investment in Safety TrainingNumber of Safety Training SessionsNumber of Paicipants in Safety TrainingTotal Duration of Safety TrainingAverage Duration of Safety Training per Person
Coverage Rate of Safety TrainingCoverage Rate of Safety Risk Protection Training
Safety Production Investment
Number of Work-Related DeathsNumber of Workdays Lost due to Work-Related Injuries
Work Inju Rate
60.5
35,01593,056
10.67
10,000 yuanSessionPerson-timeHourHour/person%%10,000 yuan
Person
Day%
Indicator
Target ContentAchievement Status
Zero re accidents in 2025Zero new occupational diseases in 2025Zero serious or fatal safety production accidents in 2025
Minor inju accident rate in 2025 ≤ 1‰
AchievedAchievedAchievedAchieved
Safety and Health Management Measures
The Company formulates the Equipment Management Regulations to manage the entire lifecycle of equipment operation and speci-es the responsibilities for equipment management as well as pre-, mid-, and post-use management of equipment. Additionally, theCompany regularly conducts equipment safety hazard identication and rectication supeision in a closed-loop process.
Production Equipment Management
To strengthen contractor safety management, the Company formulates the Contractor Safety Management Regulations, signs theContractor EHS Management Agreement with contractors, conducts pre-qualication reviews of contractors, requires contractors toprovide relevant qualication ceicates, and signs the Contractor Ent Park Safety Management Notice, which includes on-sitework safety and environmental protection guidelines and emergency response procedures. When processing contractor ent per-mits for construction, the Security Depament must review the Contractor EHS Management Agreement and the Contractor EntPark Safety Education Notice and conrm their accuracy before issuing the ent permits. During the contractor’s work process, theCompany assigns a project supeisor to oversee operations, requiring the contractor to complete the ‘Contractor Daily InspectionRecord Form’ and promptly address any identied issues.
Contractor Safety Management
The Company places high impoance on safety culture development, regularly organizing activities such as ‘Safety ProductionMonth’ and ‘Fire Safety Promotion Month,’ actively conducting occupational health and safety training for employees, includinghazard identication, anti-three violations safety knowledge, accident case studies, and various safety training sessions. The Com-pany also regularly publishes ‘EHS Encyclopedia’ to popularize safety knowledge and enhance the safety awareness of all employ-ees.
Safety Promotion and Training
Indicator
Target
The Company sets occupational health and safety goals for the year 2025.
Metrics and Objectives
In June 2025, the Company carried out a series of activities for Safety Production Month, including safety awareness promotion, hazard repo-ing activities, safety skills competitions, Red Cross rst aid ceication training, safety ocer ceication training, safety leadership training,special inspections, and emergency drills. Through multi-level and multi-dimensional activity arrangements, the Company eectively strength-ens safety management at all levels and enhances the emergency self-rescue and mutual rescue capabilities of all employees.
Safety Production Month Series Activities
Safety Awareness Promotion
Jiaojiang District 2025 “Ankang Cup”Work Safety Knowledge Competition
Red Cross First Aid Ceication Training
Team Leader Safety Leadership TrainingHazard Identication TrainingAnti-Three Violations Safety Knowledge Training
CaseStudy
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
People-Oriented,Uniting for Common Progress
101102
Occupational Health Protection
The Company formulated the Occupational Health Comprehensive Management System, which stipulates occupational diseasehazard monitoring and evaluation management. The Company shall entrust qualied occupational health technical seice agenciesto conduct occupational disease hazard factor testing at least once a year and occupational disease hazard status evaluation at
Occupational Disease Hazard Factor Testing
To strengthen the Company’s re safety management, the Company formulated the Fire Safety Management Regulations, regularlyentrusting professional third-pay institutions to conduct comprehensive re facility inspections. After the inspections, recticationrepos are promptly provided, and various improvement measures are quickly implemented. Fuhermore, the Company itself con-ducts regular maintenance of re facilities to ensure their eectiveness and safety. In terms of hazardous chemical safety manage-ment, the Company strictly adheres to chemical storage and usage standards, focusing on leak-proof measures to comprehensivelyprotect employees’ lives, propey, and environmental harmony.
Safety Facility Management
The Company has formulated occupational disease prevention systems such as the Labor Protection Equipment Management Mea-sures, the Safety and Occupational Health Warning and Notication System, and the Occupational Health Examination ManagementMeasures, implementing various occupational disease prevention measures to eectively prevent, control, and eliminate occupa-tional hazards, prevent occupational diseases, and protect the health of all employees. Employees may encounter hazards such asnoise, radiation, and chemical exposure during production work. The Company provides complete labor protection equipment andconducts maintenance, management, and regular inspections of such equipment. The Company establishes and posts hazard noti-cation signs and warning labels to remind workers to protect their health and safety. The EHS Depament of the Base OperationsCenter annually identies occupational health hazard positions within the Company and issues the Occupational Hazard AssessmentForm, listing occupational hazard factors, their impact on the human body, and potential occupational diseases, and assesseswhether medical examinations are required. The scope of employee occupational health examinations includes pre-employment,in-seice, and emergency medical examinations. During the Repoing Period, the employee medical examination coverage ratewas 100%, with 0 new cases of occupational diseases.
Occupational Disease Protection
In addition, the Company conducts specialized safety training for contractors to ensure strict compliance with safety regulationsduring project execution, jointly maintaining the Company’s work safety order and working together to build a harmonious workenvironment with zero accidents and zero injuries.
Chemical Leak-Proof MeasuresFire Protection Facilities
On-site Labor Protection EquipmentOn-site Warning Sign Images
Employee Physical Examination
On April 23, 2025, the Company conducted contractor operation standard training for third-pay construction personnel. The safety trainingmainly included basic safety knowledge, accident case warnings, special operation standards, emergency response and re evacuation, etc.Additionally, an EHS assessment of the contractors was conducted, and safety agreements were signed.
least once eve three years, ensuring that the intensity or concentration of occupational disease hazard factors in the workplacecomplies with national occupational health standards. During the Repoing Period, the Company’s occupational disease hazardfactor testing compliance rate was 100%. Contractor Safety TrainingCaseStudy
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
People-Oriented,Uniting for Common Progress
103104
Cstal-Optech regards employees as the prima resource for the Company’s development, cares for and respects their rights,continuously optimizes the employee structure, improves the welfare and security system, facilitates democratic communicationchannels, eectively enhances employees’ sense of belonging and cohesion, and builds a harmonious and stable labor relationship.
Protecting the Legitimate Rights and Interests of Employees
Protection of Employee Rights
The Company strictly complies with laws and regulations such as the Labor Law of the People’s Republic of China (hereinafterreferred to as the Labor Law) and the Labor Contract Law of the People’s Republic of China (hereinafter referred to as the LaborContract Law). It formulates and implements regulations such as the Employee Handbook, Procedures for Prohibiting Discrimination,Harassment or Abuse, Non-Forced Labor Procedures, and Child Labor and Juvenile Worker Control Procedures to safeguard the legit-imate rights and interests of employees. The Company prohibits all forms of harassment, abuse, sexual harassment, or corporal pun-ishment as disciplina measures, rmly opposes discriminato behavior, and does not dierentiate treatment of employees basedon factors such as age, disability, ethnicity, gender, marital status, nationality, political aliation, race, religion, sexual orientation,gender identity, union membership, or any other status protected by applicable national or local laws. The Company prohibits theuse of any form of forced or compulso labor, ensuring that all employees across the Company are voluntarily employed. The Com-pany prohibits the employment of child labor and strictly veries the identity information of job applicants during the recruitmentprocess to ensure that all applicants meet the legal working age. If employees discover any of the above prohibited behaviors withinthe Company, they may le a complaint verbally or in writing to their superiors.To fuher enhance employees’ awareness of human rights protection, the Company provides specialized RBA corporate socialresponsibility training for new employees, teaching relevant codes of conduct and human rights protection clauses to help employ-ees deeply understand and consciously practice the values of respect and inclusion in their work.
Human Rights Protection
The Company values the protection of women’s rights and has established the Female Employee Labor Protection ManagementProcedures, stipulating the principle of gender equality in promotions, compensation, and benets. It strengthens humanized carefor special stages such as pregnancy, maternity, and breastfeeding, helping female employees better achieve work-life balance. TheCompany provides female employees with exclusive paid leave such as breastfeeding leave, prenatal check-up leave, childcareleave, and single-child accompanying leave. It also sets up breastfeeding rooms to oer convenience and a comfoable space forfemale employees during the breastfeeding period.
Protection of Women’s Rights
Female Employees’ Breastfeeding Room
During the Repoing Period
The employee labor contract signing rate was100%, and no illegal or non-compliant inci-
dents such as employment discrimination, harassment, child labor, or forced labor occurred.
Unit2025
Number of Employees Enjoying Maternity LeaveNumber of Employees Enjoying Childcare Leave
Person
%Person
%
%
Indicator
Return-to-Work Rate of Employees
Enjoying Maternity LeaveReturn-to-Work Rate of EmployeesEnjoying Childcare LeavePropoion of Female Employees
in Management Positions
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
People-Oriented,Uniting for Common Progress
105106
Talent Recruitment and Retention
The Company adheres to the principles of ‘fairness, openness, competition, merit-based selection, and non-discrimination,’ strictlycomplies with laws and regulations such as the Labor Law and the Labor Contract Law, and formulates the Recruitment and Em-ployment Control Procedures to standardize processes such as employee inteiews and hiring, improve recruitment quality, ensurethe timely introduction of required talents, and gradually establish a stable talent team. The Company continuously conducts diver-sied recruitment through channels including social recruitment (online platforms such as BOSS, 51job, and Liepin), campus recruit-ment (paner institutions such as Changchun University of Science and Technology, Shaanxi University of Science and Technology,and Xi’an Technological University), recruitment through labor depaments, collaboration with headhunting rms, as well as inter-nal recruitment, labor dispatch, and media recruitment. Additionally, the Company has established dedicated recruitment channelsfor veterans and individuals with disabilities, tailoring suitable positions based on their unique skills, experiences, and personaltraits.
Talent Recruitment
Employee Structure
Unit2025Under 30 Years Old (Excluding 30)30-40 Years Old (Including 30, Excluding 40)40-50 Years Old (Including 40, Excluding 50)
50 Years Old and Above
4,3433,0311,169
Person
Person
Person
PersonProduction StaSales StaTechnical StaFinancial StaAdministrative Sta
6,517
1,405
Person
Person
Person
Person
PersonDoctorateMaster’s DegreeBachelor’s DegreeAssociate DegreeHigh School (Seconda Specialized)Below Junior High SchoolSenior ManagementMiddle ManagementFrontline Employees
Person
Person
Person
8,461
1,3571,8832,9102,272
Person
Person
Person
Person
Person
Person
Indicator
By Age
By Profession
By Educational
Background
By Job LevelUnit2025
Total Number of Employees8,721PersonFemaleMale
3,1755,546PersonPerson
Indicator
By Gender
Campus Recruitment Seminar
Mainland China
Overseas RegionsHong Kong, Macau,and Taiwan Regions of China
PersonPersonPerson
8,399
By Region
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
People-Oriented,Uniting for Common Progress
107108
Unit2025
3.6
%DayIndicator
Compensation and Bene?ts Management
The Company formulates the Compensation Management Regulations, adhering to the compensation design principles of ‘fairness,competitiveness, motivation, legality, dierentiation, and sustainability,’ and establishes a compensation distribution system that isexternally competitive and internally balanced. Employee compensation includes xed income, variable income, and long-termincentives, with variable and long-term incentives linked to company and individual peormance. The compensation and benetsstandards for frontline employees are higher than the local minimum wage.
Employee Compensation
Strengthening Democratic Management
The Company strictly complies with the Trade Union Law and related regulations, formulates the Trade Union Work Procedures, andestablishes a trade union and sta congress. The sta congress, as an institution representing and seing the interests of all em-ployees, has its members elected by employee vote. Trade union members are democratically elected by the sta congress. Inaccordance with the law, the trade union organizes employees to paicipate in the Company’s democratic decision-making, demo-cratic management, and democratic supeision through the sta congress.
Democratic Management Mechanism
The Company strengthens democratic development by formulating and implementing the Employee Appeal and Handling Proce-dures, encouraging employees to voice their opinions, suggestions, and concerns, promoting open communication between man-agement and employees, and ensuring fairness, justice, and equality within the Company. The Human Resource Shared SeiceCenter is responsible for handling employee appeals and archiving appeal records. The trade union assists in investigating and han-dling employee opinions and appeals, addressing violations of labor laws and regulations, infringements of employees’ legal rights,and labor disputes within the Company. Employees may le an appeal if they encounter situations they believe harm their rights orinvolve violations of laws or regulations. To protect employees from retaliation, anonymous appeals are allowed through channelssuch as the general manager’s mailbox, ocial WeChat account, email, or phone.
Employee Communication and Exchange
The Company has formulated the Platform Functional Personnel Peormance Incentive Plan to establish a scientic incentive andrestraint mechanism. Annual peormance appraisals are conducted for all functional personnel on the platform. The appraisal pro-cess includes peormance goal setting, peormance evaluation, peormance inteiews, and peormance appeals. The appraisalresults are linked to annual peormance bonuses, rewards, and personal development.
Peormance Appraisal Management
The Company has established the Employee Benets Management Regulations for all domestic employees, covering benets such associal security, employee life benets, work condition benets, employee health benets, and cultural, recreational, and family activ-ity benets.The Company strictly complies with national and local laws and regulations, providing social insurance and housing provident fundcontributions for employees who have signed labor contracts with the Company. The Company oers employee dormitories forsome sta, as well as life benets such as holiday gifts, bihday benets, and retirement condolence payments. Employees canenjoy work-related benets such as housing subsidies, night shift allowances, and transpoation subsidies.
Employee Benets
Equity incentives are an indispensable tool for cultivating and building a professional, market-oriented, and high-quality workforce.The Company actively implements employee stock ownership plans and sets unlocking conditions tied to individual peormanceappraisal results, striving to retain talent resources and continuously motivate employees’ enthusiasm and dedication. During theRepoing Period, the employee turnover rate in the Company’s functional platforms was 20%.
Talent Retention
Unit2025
Number of Ethnic Minority Employees
Social Insurance Coverage RateAverage Number of Paid Annual Leave Days per Capita
PersonPersonNumber of Ethnic Minorities in Management
Indicator
Peormance Management Process for Platform Functional Personnel
Peormance Evaluation
Peormance appraisals for managerial positions are primarily evaluated by the headsof functional centers, while appraisals for non-managerial positions are jointly evalu-ated by direct and indirect supeisors.Supeisors in charge of appraisals are responsible for conducting peormance inter-views, communicating with each employee based on their actual work, achievements,and peormance, and providing improvement suggestions to help employeesenhance their peormance.If employees are unclear about or disagree with the appraisal results, they may rstcommunicate with their depament heads. If the communication is ineective, theymay submit a written appeal to the Human Resources Center. Upon receiving theappeal, the Human Resources Center will respond within three working days regard-ing whether the appeal is accepted. For accepted appeals, the Human ResourcesCenter will conduct an investigation and coordinate with the appealing employee.
Peormance Inteiew
Peormance Appeal
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
People-Oriented,Uniting for Common Progress
109110
Employee Care
The Company places great emphasis on the construction of humanistic care, providing comprehensive care for employees in bothwork and life. By organizing a variety of employee activities, it promotes communication and collaboration among teams, enhancesmutual understanding and trust among employees, and continuously fosters a harmonious and positive work atmosphere. In addi-tion, the Company has established an ‘Employee Home’ as an impoant venue for employees’ cultural and recreational activitiesand a platform for spiritual exchange and relaxation, fuher strengthening employees’ sense of belonging and team cohesion.
Employee Activities
The Company cares for and suppos retired employees, conducting regular visits and condolences to ensure each retired employeedeeply feels the Company’s concern and warmth. To create a good atmosphere of unity and mutual assistance, the Company estab-lished a ‘Gratitude Fund’ committee, focusing on employees’ actual diculties and providing timely nancial assistance and suppoto families of employees suering from major illnesses. During the Repoing Period, the Company assisted 3 employees in need,with a total assistance amount of 59,800 yuan.
Employee Assistance
The Company rmly believes that employee mental health is a crucial foundation for stable corporate development. To this end, theCompany has formulated the Employee Mental Health Protection Mechanism, implementing a series of measures and activities toensure employees maintain good mental health and work-life balance while working eciently. The Company has established amental health leadership group and an execution group, regularly conducting mental health training and team-building activities foremployees. Employee mental health is also incorporated into the monthly assessment system, with continuous optimization of themental health protection mechanism based on assessment results, creating a healthy, harmonious, and positive work environmentfor employees.
Employee Mental Health
Cstal-Optech Fouh Dual Ball CompetitionMid-Autumn Festival Activity
Teachers’ Day ActivityCstal-Optech Tenth Basketball Tournament
Writing ‘Fu’ and Giving Spring
Festival Couplets Activity
International Women’s Day ActivityDragon Boat Festival Activity
The Company conducts an annual satisfaction suey for all employees, continuously addressing their needs and resolving issueseciently. In this year’s satisfaction suey, the Company evaluated six core dimensions: appeal mechanisms, wages, health andsafety, mental health, facilities, and workforce stability. A total of 2,125 employees paicipated, with a paicipation rate of 74% .
Employee Satisfaction Suey
The statistical scope for the employee satisfaction suey paicipation rate is dened as the parent company.
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
People-Oriented,Uniting for Common Progress
111112
Cstal-Optech attaches great impoance to talent development and cultivation, committed to planning clear growth paths for em-ployees, building a systematic and multi-dimensional training system, and providing abundant training resources and personalizedlearning suppo to empower employees to continuously enhance their professional capabilities and comprehensive qualities.
Employee Training and Development
Employee Training Management
In 2017, the Company established the Cstal Business School, adhering to the mission of ‘seing Cstal’s cultural heritage, strate-gic implementation, and business growth in a timely, precise, and eective manner’ and the teaching philosophy of ‘integratingknowledge and action, combining training and practice.’ It has built a knowledge platform, learning platform, and seice platformcovering the entire Cstal domain, providing sucient endogenous talent suppo for the Company’s development. Additionally,the Company has established a learning and growth system for managing employee training evaluations, along with setting evalua-tion standards that assess training outcomes from three aspects: credits, learning ability index, and learning sharing index.The Company continuously upgrades its online learning platform, with courses covering leadership and professional competencysystems. By the end of the Repoing Period, the platform oered a total of 455 courses, including 215 newly added or updatedcourses during the year.
Training Platform Construction
To promote team growth and business development, the Company has established a team of lecturers to conduct diversied inter-nal training for various depaments. Through the sharing of professional knowledge and practical experience, it helps employeesquickly improve their business skills and practical problem-solving abilities. As of the end of the Repoing Period, the BusinessSchool has ceied a total of 123 lecturers, with 17 new internal lecturers selected and ceied during the year.During the Repoing Period, to fuher enhance the course development and teaching abilities of lecturers, the Company organizedspecialized training such as Vivid Teaching Techniques for Lecturers, with a total of 27 lecturers paicipating.
Faculty Team Building
The Company places great emphasis on talent development. In terms of professional competency training, the Company has imple-mented programs such as the Optical Professional Required Course, Equipment Professional Required Course, Technical PositionEngineering Crash Course, and Coating Bootcamp to solidly improve employees’ technical literacy and practical business skills. Interms of leadership enhancement, the Company has launched specialized leadership training, the New Cstal Cadre Bootcamp, andNew Executive Training programs to strengthen the management mindset, team leadership, and strategic execution capabilities ofkey personnel at all levels. Additionally, the Company conducts onboarding training programs to help new employees quickly inte-grate into the culture, familiarize themselves with the business, and accelerate their ability to peorm their roles.
Employee Training Programs
Optics Major Compulso CourseEquipment Major Compulso Course
During the Repoing Period, the Company meticulously planned andsuccessfully held the 2025 “Cstal Talent Program” Bootcamp. Thisbootcamp focused on empowering new talents and solidifying thetalent foundation. Through diversied courses and practical exercises,it helped Cstal Talent paicipants systematically master essentialworkplace knowledge and skills, eectively facilitating their smoothtransition from campus to the workplace. It comprehensivelyenhanced their overall professional skills and job competency, contin-uously injecting fresh vitality into the Company’s future development.
Cstal-Optech 2025 Cstal Talent Bootcamp
Xinjing Cadre Training CampNew Senior Executive Training
Technical Position Engineering Crash Course
Coating Training Camp
2025 “Cstal Talent Program” BootcampCaseStudy
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
People-Oriented,Uniting for Common Progress
To fully activate the Company’s human resources and build a sustainable talent development mechanism, the Company has estab-lished the Job Competition Management System to systematically select, cultivate, and resee outstanding talents, thereby broad-ening the channels for the Company to attract excellent talents and providing employees with a continuous growth career platform.
Internal Recruitment
Excellence Ladder Level Settings
Core ValueTypical Prole
P9P8P7P6P5P4
AuthorityLeading
ExpeInnovation
BackboneDevelopmentP3P2P1
ExperiencedPractice
BeginnerLearning
Level Code
113114
Unit2025
Total Investment in Employee TrainingNumber of Employee Training SessionsTotal Number of Training AttendancesEmployee Training Coverage RateTotal training durationAverage Training Hours per Employee
270.29
98,107
28,227.58
3.24
10,000 yuanSessionPerson-time%HourHour/person
Indicator
Employee Development Pathways
The Company provides suppo and platforms for employee growth, oering broader development oppounities for talents who arewilling to challenge themselves and pursue comprehensive development. The Company has formulated the Career Planning - Ai-san Ladder (T Series) Promotion System and the Career Planning - Excellence Ladder Promotion Management System to establishprofessional career advancement paths for frontline key employees. Based on these systems, leaders assist subordinates in formu-lating and implementing career development plans, regularly evaluate the eectiveness of subordinates’ career plans, provideimprovement suggestions, and oer necessa suppo and assistance. Employees, guided by the Aisan Ladder, continuouslyenhance their professional capabilities, actively paicipate in various training programs provided by the Company, and inde-pendently apply for professional level ceications.
Job Rank System
Aisan Ladder Level Settings
Core Value Typical Prole
T5T4T3T2T1
BackboneDevelopment
ExperiencedPractice
BeginnerLearning
Level Code
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
People-Oriented,Uniting for Common Progress
115116
Our PhilosophyCstal-Optech has always regarded fullling corporate socialresponsibility as its original aspiration and duty, actively promotingcommunity-enterprise co-construction, empowering rural develop-ment, and continuously caring out charitable donations to giveback to society with practical actions, achieving the common sus-tainable development of the enterprise and society.Our ActionsIncreasing Community Contributions, Suppoing Rural Revitaliza-tion, Engaging in Public Welfare and CharityResponded SDGs
Gathering Strengthfor Public Welfare,Beneting People’sLivelihood
Cstal-Optech actively responds to the CPC Central Committee’s call to “Comprehensively Promote Rural Revitalization” by fullycaring out consumption assistance, education assistance, employment assistance, and other work to empower rural revitalizationin assisted areas and suppo the sustainable and healthy development of the rural economy. In 2025, the Company invested a totalof 130,000 yuan in rural revitalization.
Rural Revitalization
Cstal-Optech actively paicipates in social welfare causes, orderly carries out external donation work, dedicates love with practi-cal actions, and contributes to the construction of a harmonious society. In 2025, the Company’s total public welfare investment was200,000 yuan.
Public Welfare
117118
Under the guidance of the rural revitalization strategy, Cstal-Optech deepens its social responsibility practices by focusing on consumptionassistance, breaking through the production and sales chain of agricultural products in assisted areas through the “purchase instead of dona-tion” model, and eectively helping farmers increase income and rural industries develop. In 2025, the Company directed purchases of agricul-tural products from impoverished counties in Sichuan, with a total purchase amount of 120,008 yuan, not only providing material suppo foremployee welfare and daily operations but also directly helping assisted areas solve the problem of agricultural product sales, transformingfarmers’ “eld haests” into “stable incomes.”
Purchasing Specialty Agricultural Products
To actively respond to the Pay’s relevant spirit and deployments, and thoroughly implement the requirements of the rural revitalization strat-egy, Cstal-Optech has always proactively practiced corporate social responsibility and deeply rooted the culture of gratitude within theenterprise. In 2025, the Company continued to provide educational suppo to ve needy students in Zhongtou Town, Jia County, Pingding-shan City, Henan Province. Through continuous actions of precise education povey alleviation, the Company suppos the revitalization ofrural education, deeply integrates the fulllment of social responsibility with the construction of a corporate culture of gratitude, and steadilyadvances and achieves the social value goals pursued by the Company.
In 2025, the Company ocially signed the Charitable Donation Agreement with the Jiaojiang District Charity Federation in Taizhou City,launching a ve-year systematic public welfare donation plan with a cumulative donation amount of RMB 1 million. Each year, a directeddonation of RMB 200,000 will be made and Achieved before April of that year. Through the professional platform of the Jiaojiang DistrictCharity Federation, the funds will be precisely used to assist disadvantaged groups and suppo the implementation of public welfare projects,eectively contributing to the development of local charitable causes.
Donating to Needy Students in HenanFive-Year Public Welfare Commitment, Practicing Responsibility and Duty
Consumption Assistance for Revitalization
CaseStudy
CaseStudy
CaseStudy
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Gathering Strength for Public Welfare,Beneting People’s Livelihood
2026 marks a critical staing year for entering the new development phase of the “15th Five-Year Plan.” Cstal-Optech will contin-ue to adhere to its corporate vision of “becoming a global leading one-stop optical expe,” embracing the operational principle of“consolidating foundations, focusing on strategic breakthroughs, and embracing the new era of AI.” It will persist in sustainabledevelopment, leading the optical indust toward a greener, more inclusive, and smaer future.In the environmental domain, we will continue to uphold the concept of green development, actively address climate change,improve resource eciency systems, promote low-carbon energy transition, reduce pollutant generation and emissions at thesource, protect the ecological environment, and strive to achieve coordinated progress between economic development and eco-logical protection.
Looking Ahead
119120
In the social domain, we will create outstanding value for customers through continuous technological innovation and stringentquality and safety guarantees. We will continue to build an inclusive, diverse, and mutually respectful work environment, providingemployees with clear career paths and comprehensive care and suppo. We will more actively paicipate in public welfare actions,fulll our social responsibilities, and genuinely give back to society.In the governance domain, we will continue to improve the ESG management system, solidly integrating sustainable developmentgoals into the Company’s strategy and implementation plans. We will continue to enhance the breadth and depth of informationdisclosure, maintain active dialogue with stakeholders, and continuously strengthen the resilience, transparency, and foresight ofcorporate governance, laying a solid foundation for long-term sustainable development.
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Looking Ahead
Appendix
121122
Appendix
P3.1/P3.3P3.2P3.2/AboutCstal-Optech
Company
ProleDevelopment
StrategyCorporate
CultureCorporate
Honors2025 AnnualHighlightsandPeormance
201-1A2
2-1///
////
ESGManag-ement
ESG Goalsand Vision
Aicle 9Aicle 53ESGGovernanceStakeholderEngagementMaterialityIssueManagement
About This Repo2-2/2-3P1.1/P1.2
Chairman’s Speech/P2.1/
Aicle 4Aicle 6
2-14/2-172-16/2-292-29/3-1/3-2/3-3
///
/
//
//
G1.1.1/G1.1.2/G1.1.3/G1.1.5/G1.1.6
G1.3.2G1.1.9/G1.1.10
Aicle 12
Aicle 5
Aicle 54Aicle 55Aicle 56
StandardizingCorporateGovernance
2-9/2-10/2-11/2-12/2-13/2-15/2-18/2-19/
2-20/2-27/207-2
2-25/2-26/2-27/205-2/205-3/206-1
G2.1.1/G2.1.2/G2.1.3/G2.1.4/G2.1.7/G2.1.8/G2.2.1/G2.2.2/G2.2.3
ProtectingInvestorRightsPracticingBusinessEthics
2-16
AddressingClimateChange
201-2/305-1/305-2/305-4/305-5
E1.1.1/E1.1.2/E1.1.3/E1.1.4/E1.1.5/
E1.1.6/E1.1.7/E.1.1.8/E1.1.15/
E1.1.16/E1.1.19/E3.1.4/E3.3.3
Aicle 11Aicle 21Aicle 22Aicle 23Aicle 24Aicle 25Aicle 27Aicle 28
RepoChapters
Global Repoing Initiative
(GRI Standards)
China Corporate SustainabilityRepoing Guidelines(CASS-ESG 6.0)
Self-Regulato Guidelines forListed Companies No. 17 – Sustainability
Repoing (Trial)
/
Occupational
Health and
Safety
403-1/403-2/403-3/403-4/403-5/403-7/403-9/403-102-7/201-3/401-1/401-2/
401-3/405-1/406-1/
408-1/409-1404-1/404-2
S4.2.1/S4.2.2/S4.2.3/S4.2.4/S4.2.6
S4.1.1/S4.1.2/S4.1.3/S4.1.4/S4.1.5/S4.1.6/S4.1.7/S4.1.8/S4.1.9/S4.1.10/S4.1.11/S4.1.12S4.3.1/S4.3.2/S4.3.3/S4.3.4/S4.3.5/S4.3.6
Aicle 11Aicle 49Aicle 50Aicle 49Aicle 50Aicle 49Aicle 50
ProtectingtheLegitimateRights andInterests ofEmployeesEmployeeTraining andDevelopment
203-1/203-2203-2
S1.1.1/S1.1.2/S1.1.3/S1.1.4S1.2.1/S1.2.2
Aicle 38Aicle 39Aicle 38Aicle 40RuralRevitalizationPublic Welfare
Appendix
//
A3A6
Aicle 57/Index ofIndicatorsFeedbackForm
Looking Ahead//A1
303-4/306-1/306-2/306-3/306-4/306-5
302-1/302-4
/303-5
E2.1.1/E2.1.2/E2.1.3/E2.1.5/E2.1.6/E2.1.8/E2.1.9/E2.2.1/E2.2.3/E2.2.5/E2.2.6/E2.2.7/E2.4.1/E2.4.2/E2.4.3/
E2.4.4/E3.3.4/E3.3.5E3.1.1/E3.1.2/E3.1.4/E3.1.5/E3.2.1/E3.2.2/E3.2.3/E3.2.4/E3.3.1/E3.3.2/
E3.3.4/E3.3.5
Aicle 11Aicle 35Aicle 36Aicle 37
Environmental
ComplianceManagement
ResourceManagement
Innovation-
Driven
Aicle 48
Supply ChainManagement
2-6/308-1/308-2/
414-1/414-2416-1/416-2/417-1/418-1
418-1S3.4.1/S3.4.2/S3.4.3
S2.1.1/S2.1.2/S2.1.3/S2.1.4/S2.1.5/S2.1.6/S2.1.7/S2.1.8/S2.1.10/S2.1.11/
S2.1.12/S2.1.13S3.1.1/S3.1.2/S3.1.3/S3.1.4/
S3.2.1S3.3.1/S3.3.2/S3.3.3/S3.3.4/S3.3.5/S3.3.6/S3.4.3/S3.4.4Productand SeiceSafety and
QualityData Securityand PrivacyProtection
Aicle 11Aicle 42Aicle 11Aicle 45Aicle 46Aicle 11Aicle 47
Aicle 11Aicle 29Aicle 30Aicle 31Aicle 33
RepoChapters
Global Repoing Initiative
(GRI Standards)
China Corporate Sustainability
Repoing Guidelines
(CASS-ESG 6.0)
Self-Regulato Guidelines forListed Companies No. 17 – Sustainability
Repoing (Trial)
Standard-
izedGover-nance and
SteadyOpera-
tions
Low-Car-
bonActions,GreenDevelop-
ment
Low-Car-bonActions,GreenDevelop-ment
Technolo-
gyEmpow-erment,Value Co-Creation
Peo-ple-ori-ented,Uniting
forCommonProgress
GatheringStrengthfor PublicWelfare,BenetingPeople’sLivelihood
ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025
Feedback Form
123124
Feedback FormThank you for reading the Cstal-Optech Co., Ltd. 2025 Environmental, Social, and Governance Repo. To improve Cstal-Optech’work in environmental, social, and governance aspects, fuher enhance the Company’s sustainable development capabilities andlevels, and strengthen communication with all sectors of society, we sincerely hope that you can take the time to provide valuablecomments and suggestions on our work and the repo.
Your InformationName: Phone:
Organization: Email:
Multiple-choice questions (please check in the appropriate position)
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ZHEJIANG CRYSTAL-OPTECH CO.,LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCEREPORT 2025