2024 Environmental, Social, andGovernance (ESG) Report
Company?s Internet Website: www.meiling.comTel: 0551-62219021O?ces add：No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei
Changhong Meiling Co., Ltd.
Dedication, Responsibility, Co-Creation, and Sharing
Contents
Report Preparation Notes
Performance TableReport Index
About Changhong Meiling
Deepening ESGGovernance Capabilities
Environment
Social Responsibility
Governance
Materiality Assessment
Corporate Pro?leCorporate CultureCorporate Development CourseBusiness OverviewMeiling 2024 Milestones Annual Honors
IntroductionPreparation BasisScopeData DescriptionDe?nitionsReport Access and Feedback
Dual Materiality AnalysisDue Diligence and Stakeholder EngagemenConclusions of Materiality Analysis
Sustainable Development Governance FrameworkOrganizational Structure and Scope of ResponsibilitiesSustainable Development Mechanism ConstructionESG Capability EnhancementSustainable Development StrategySustainable Development Risk ManagementSustainable Development Indicators and Goals
Product and Service Safety and QualityData Security and Customer Privacy ProtectionWin-Win CooperationInnovation-Driven DevelopmentEmployeesSocial Responsibility
Corporate Governance MechanismsBusiness Ethics and Anti-CorruptionAnti-Unfair CompetitionClimate Change ResponseEnvironmental Compliance ManagementStrengthening Pollution Prevention and ControlStrengthening Energy ManagementWater Resource UtilizationDeveloping the Circular EconomyEcological and BiodiversityConservationAdvancing Green Manufacturing
Chairman’s Message
Board of Directors’ ESG Statement
Report Preparation Notes
Introduction
Data Description
De?nitions
Report Access and FeedbackScope
Preparation Basis
This report is the secondEnvironmental, Social, and Governance (ESG) Report(referred to as the “ESGReport” or “this Report”) released by Changhong Meiling Co., Ltd. Prepared in accordance with theprinciples of objectivity, standardization, transparency, and comprehensiveness, this Report provides a detaileddisclosure of the Company’s practices and performance in environmental, social, and governance aspects forthe year 2024.
The data used in this Report is sourced from the Company’s operational raw data, publicly available government
data, annual ?nancial data, internal statistical reports, and other relevant sources. Financial data in this Report is
denominated in RMB. In case of any discrepancies with the ?nancial report, the ?nancial report shall prevail.
This Report is published in electronic format and can be accessed and downloaded from the
Shenzhen Stock Exchange website (http://www.szse.cn) or the Cninfo website (http://www.cninfo.
com.cn). If you have any comments or suggestions regarding this Report or the Company’s social
responsibility performance, please email us at info@meiling.com, or call 0551-62219021.
The reporting period of this Report is from January 1, 2024, to December 31, 2024 (referred to as the“Reporting Period”). To enhance the comparability and forward-looking nature of this Report, somecontent appropriately references previous years or includes forward-looking descriptions. The preparation ofthis Report covers Changhong Meiling and its subsidiaries. Unless otherwise speci?ed, the statistical scopealigns with the annual report.
Guiding RulesSelf-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange — Sustainability Report(Trial) issued by the Shenzhen Stock Exchange (hereinafter referred to as the “ Guidelines”)Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen Stock Exchange — Preparation ofSustainability Report issued by the Shenzhen Stock ExchangeGuiding Opinions on the Ful?llment of Social Responsibility by Central Enterprises issued by the State-ownedAssets Supervision and Administration Commission of the State CouncilChina Corporate Sustainability Reporting Guide (CASS-ESG 6.0) by the Chinese Academy of Social SciencesSustainability Reporting Standards (GRI Standards 2021) by the Global Reporting Initiative (GRI)United Nations Sustainable Development Goals 2030 (SDGs)Sustainability Accounting Standards Board (SASB) StandardsInternational Financial Reporting Sustainability Disclosure Standards (IFRS) S1—General Requirements forDisclosure of Sustainability-related Financial Information and IFRS S2—Climate-related Disclosures by theInternational Sustainability Standards Board (ISSB)
◆◆
◆◆◆◆◆◆
Reference Rules
Terms to be de?nedDe?nitionChanghong Meiling, Company,The Company, Our Company, We
Changhong Meiling Co., Ltd.Changhong Air ConditionerSichuan Changhong Air Conditioner Co., Ltd.
Zhongshan ChanghongZhongshan Changhong Electric Co., Ltd.Jiangxi MeilingJiangxi Meiling Electric Appliance Co., Ltd.Mianyang MeilingMianyang Meiling Refrigeration Co., Ltd.Ridian TechnologyChanghong Meiling Ridian Technology Co., Ltd.Zhongke MeilingZhongke Meiling Cryogenic Technology Co., Ltd.Changmei Life AppliancesHefei Changhong Meiling Life Appliances Co., Ltd.
Hefei IndustryHefei Changhong Industry Co., Ltd.Hongmei IntelligentSichuan Hongmei Intelligent Technology Co., Ltd
ReportPreparation Notes
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
As time marches forward, a new chapter begins.The year 2024 marks a critical juncture in achievingthe goals outlined in the 14th Five-Year Plan, ayear of perseverance where opportunities andchallenges coexist. Anchored ?rmly in the primarytask of high-quality development, we adhere tothe business philosophy of “value orientationand comprehensive efficiency improvement”,steadfastly advancing digital and intelligenttransformation. We actively explore pathways forESG to empower business growth, intensify e?ortsin technological innovation, and foster greenproduction, thereby contributing to the formationand development of new productive forces.Deeply embedding the concept of sustainabledevelopment into our strategic core, we havedelivered a high-quality development reportcard across three dimensions: environmentalresponsibility, social value creation, and corporategovernance innovation.Writing a Green Chapter amidst Clear Waters andVerdant Mountains, Empowering Eco-FriendlyManufacturing with Technology
The Company remains unwavering in itscommitment to the “3060” dual-carbonstrategy, building a green management systemthat covers the entire product lifecycle. Duringthe reporting period, we actively explored andestablished “five major carbon reductionpathways”, improving energy efficiency. Asa result, our total annual carbon emissionsdecreased by 7.88%, and carbon emissions permillion yuan of output value dropped sharply by
13.89%. Driven by technological innovation, we
launched the world’s first inverter commercialkitchen refrigerator, which can save up to45% in energy consumption. Our super-first-
class energy-efficient refrigerators reducedenergy consumption by 30%. The application of“Blue Oxygen Residue Removal Technology”in our products reduces detergent usage andminimizes environmental pollution. The use ofbio-based materials and eco-friendly packagingfurther demonstrates the practical impact ofour “Green Intelligent Manufacturing Chain”.From sustainable material substitution at theraw material stage to resource recycling inproduction, we are shaping the green DNA of thehome appliance industry through technologicalinnovation.Demonstrating Corporate Warmth throughSocial Responsibility, Building a DevelopmentCommunity with a People-Centric PhilosophyEmployees are the Company’s most valuableasset. We always prioritize the realization andprotection of the interests of all employees,safeguarding their rights and promotingtheir value realization and comprehensivedevelopment. In 2024, Changhong Meiling’semployee turnover rate was controlled at 2.98%,and the proportion of female managers increasedto 16.98%. On the supply chain front, we haveestablished a robust supplier managementsystem, paying close attention to suppliers’sustainability performance and proactivelyconducting training activities to build a valueecosystem of shared responsibility. For consumers,we uphold the “zero-distance” service promise,safeguarding millions of households—with over10,000 service outlets and 20,000 engineersnationwide providing 24-hour response, achievinga comprehensive customer satisfaction rate ofover 96%. We continuously bring healthier andmore scienti?c lifestyles to our users. Additionally,
we steadfastly fulfill our responsibilities as astate-owned enterprise, contributing to ruralrevitalization with the “Meiling Strength”.
Laying a Solid Foundation for Developmentthrough Corporate Governance, ForgingSustainable Competitiveness with SystematicThinkingWe always regard compliance governance asthe cornerstone of sustainable development.In 2024, we strengthened the constructionand standardized operation of the “ThreeCommittees”, improved the ESG managementframework, enhanced internal control systems,mitigated risks, focused on enhancing corporatevalue, prioritized shareholder returns, managedinvestor relations effectively, and improved thequality of information disclosure.Those who plan wisely go far, and those who actdecisively succeed. The year 2025 will not onlymark the conclusion of the 14th Five-Year Plan butalso the strategic planning phase for the 15th Five-Year Plan. The Company will remain relentless inits pursuit of excellence, deepening sustainableoperational capabilities, advancing digitaland intelligent transformation, and promotinggreen technological innovation. We will lead theindustry in green and low-carbon developmentthrough technological innovation, build a high-quality enterprise development echelon, andstrive to elevate Changhong Meiling’s high-quality development to new heights. Withoutstanding performance, we will create greatervalue for the Company and continue to ful?ll ourcorporate social responsibilities in the practice ofsustainable development.
Chairman’sMessage
The Board of Directors of Changhong Meilingserves as the highest decision-making bodyfor the Company’s ESG matters, responsiblefor integrating ESG considerations intocorporate governance and operationaldecision-making processes. The Board placessignificant emphasis on ESG initiatives. InFebruary 2024, the Company establishedthe ESG Management Committee, chairedby the Chairman of the Board, to study andformulate the Company’s ESG strategic plansand objectives, build a management system,evaluate and review ESG strategies, risks, andimplementation, and audit the ESG reportbefore submitting it to the Board for approval.Changhong Meiling highly values theexpectations of stakeholders regarding ESGmatters. Each year, the Company conductsstakeholder engagement activities tailoredto industry characteristics and operationalpriorities to assess, prioritize, and filter ESGissues, ensuring timely adjustments andidenti?cation of material ESG topics. The mostrecent stakeholder engagement activity wasconducted in January 2025, and the Board hasreviewed and con?rmed the ?ndings.
Board of Directors’ESG Statement
ReportPreparation Notes
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
About Changhong Meiling
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
About Changhong Meiling
Corporate Pro?le
Corporate Culture
Founded in 1983 and headquartered in Hefei, Anhui, China, Changhong Meilingbecame the ?rst listed company in Anhui Province when its A-share stock waslisted on the Shenzhen Stock Exchange (SZSE) in 1993 (Stock Code: 000521.SZ). In 1996, its B-share stock was also listed on the SZSE (Stock Code: 200521.SZ), making it the first company in Anhui Province to have both A-sharesand B-shares. In the same year, it was recognized as one of the SZSE’s topten high-performing listed companies. Over the past 40 years, ChanghongMeiling has consistently adhered to the principle of “Independent Innovation,Chinese Creation”, leveraging cutting-edge technology, innovative products,and fresh services to provide better life solutions for millions of householdsworldwide.
Mission
Let Better Days Come
Core Values
Dedication, Responsibility,Co-Creation, and Sharing
Spirit
Hard Work, Pioneering, Perseverance,and ExcellenceCode of Conduct
Accountability, Ambition,Innovation, and Collaboration
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
19832002199620092015
1993
20051997
2011
The Company, in collaboration with the TechnicalInstitute of Physics and Chemistry of the ChineseAcademy of Sciences, established Zhongke Meiling,becoming one of the earliest high-tech enterprises inChina to focus on ultra-low temperature storage in thebiomedical ?eld.
The Company’s B-shares were successfully listed on theShenzhen Stock Exchange, making it the ?rst company inAnhui Province to have both A-shares and B-shares. In thesame year, it was recognized as one of the SZSE’s topten high-performing listed companies.
The Company acquired “Changhong AirConditioner” and “Zhongshan Changhong”,entering the air conditioner sector and laying thefoundation for further growth.
The Company acquiredChanghong Ridian, enteringthe small home applianceindustry, thereby completingits comprehensive white goodsindustrial layout.
The Company’s A-shares were successfullylisted on the Shenzhen Stock Exchange,making it the first listed company in AnhuiProvince.
The Company was o?cially established, transitioningfrom Hefei Second Light Industry Machinery Factory(the predecessor of Meiling) to the production ofhousehold refrigerators, embarking on a 40-yearjourney in professional refrigeration.
Sichuan Changhong Electric Co., Ltd. and the Company
underwent a strategic restructuring, marking the
beginning of the “Black-and-White Alliance”.The Company was awarded the title of “ChinaWell-Known Trademark”.
The Company established a productionbase in Pakistan for refrigerator projects,expanding into the South Asian market.
2016
The Company launched the“Zhihuijia Ecosystem” initiative. Inthe same year, its subsidiary ZhongkeMeiling was listed on the NewThird Board, officially entering thebiomedical industry. The Companyalso invested in the construction ofan Indonesian manufacturing base.
2020
The Company establisheda subsidiary for homeappliances, acceleratingthe development of itsmajor kitchen appliancesand small home appliancebusinesses.
2018
The Company invested 400million yuan to build theMeiling Hefei Washing MachineIntelligent Industrial Park, withan annual production capacityof 2 million units.
2023
During the anniversarycelebration, Meiling unveiledits new brand proposition:
“Beautiful China, FreshMeiling”.
2017
The Company introducedthe M-Fresh refrigeratorequipped with water moleculeactivation and preservationtechnology, winning twoworld records and sparking apreservation revolution in theindustry.
2022
Zhongke Meiling successfullylisted on the Beijing StockExchange, setting a record forthe fastest listing and approvalprocess in the history ofthe exchange, taking only111 days from applicationacceptance to listing.
2019
The Company launched theindustry’s first fully-thinrefrigerator, ushering in theera of ultra-thin refrigerators.
2024
The Company globallylaunched the “Blue OxygenHand-Washing” washingmachine. In September, itreleased its first Zhihuijia AImodel, shaping the future ofintelligent living.
CorporateDevelopmentCourse
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Business OverviewMeiling 2024 Milestones
Changhong Meiling is a leading domestic white household appliance manufacturer and service provider. Overmore than 40 years of development, the Company has evolved from a single refrigerator product line to adiversi?ed portfolio that includes refrigerators (and freezers), air conditioners, washing machines, major kitchenappliances, small home appliances, and biomedical low-temperature storage equipment. Currently, the companyoperates domestic manufacturing bases in Hefei, Mianyang, Jingdezhen, and Zhongshan, along with an overseasmanufacturing base in Indonesia. The "Meiling" brand has been listed as one of China's most valuable brands.The Company remains committed to “Independent Innovation, Intelligent Manufacturing in China”, steadfastlyfocusing on the home appliance industry and meticulously building its core competitiveness through technologicaland product innovation. With a cutting-edge R&D team and advanced technological expertise, Changhong Meilinghas achieved breakthroughs in various ?elds, including inverter technology, smart technology, fresh-keeping, thin-wall design, odor removal, energy-saving, air cooling, deep freezing, simulation, ultra-thin design, washing, andfabric care. The Company boasts a national-level enterprise technology center, a national-level industrial designcenter, a national-level postdoctoral research station, a 5G industrial internet innovation application laboratory,and the ?rst RoHS public testing center in Anhui Province. It also established the Anhui Province Green Energy-saving Refrigerator Engineering Technology Research Center, the Anhui Province Energy Conservation and Fresh-keeping Green Refrigerator Engineering Research Center, and the Anhui Intelligent Home Appliance ManufacturingInnovation Center. Through continuous innovation, the Company has launched a series of industry-leadingproducts, including the M-Fresh refrigerator with the best fresh-keeping performance, the industry’s ?rst fullydust-free fresh air conditioner, the “Blue Oxygen Hand-Washing” drum washing machine with the least post-rinse residue, the industry’s ?rst smart tea bar machine, and ultra-low temperature medical refrigerators capableof reaching -180°C. These products consistently bring fresher lifestyles to consumers.
The Company launched the new M-Fresh refrigerator in theindustry, featuring an upgraded long-lasting fresh-keepingtechnology. It also took the lead in responding to the nationaltrade-in initiative by launching a large-scale public welfarepromotion campaign titled “Trade-In, Meiling Fresh Action”across the country.
The Company globally debuted the “Blue Oxygen Hand-Washing” washing machine, filling a technological gap in thesector.
The Company participated in the Internationale FunkausstellungBerlin (IFA), showcasing AI-powered home appliances andunveiling its Zhihujia AI model to the global audience for the ?rsttime.
The Company launched the Blue Oxygen Laundry Care Machine,establishing a third pillar in the washing machine industry. Italso introduced the world’s first inverter commercial kitchenrefrigerator.
March
September
April
November
2024
2024
2024
2024
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Annual Honors
Award NameAwarding AuthorityPhotos of certi?cates/awards
First Batch of China’sFamous ConsumerProducts Lists
Ministry of Industryand InformationTechnology
Innovative Application Case ofIndustrial Internet Platform
Ministry of Industryand InformationTechnology
National 5G Factory Directory
Ministry of Industryand InformationTechnology
AAA-Level OutstandingEnterprise in the UpgradedIntegration of Informatizationand IndustrializationManagement System(2023-2024)
China IndustrialControl SystemsCyber EmergencyResponse Team
Award NameAwarding AuthorityPhotos of certi?cates/awards
Anhui Province’s “ThreeProducts” DemonstrationEnterprise in ConsumerGoods Industry
Anhui ProvincialDepartment of
Industry andInformationTechnology
Top 100 List of AnhuiProvince’s InventionPatents (2024)
AnhuiAdministration forMarket Regulation,Anhui ProvincialDepartmentof Science andTechnology, etc.
“National Stable andQuali?ed Product in QualityInspection” Title
China Associationfor QualityInspection
Annual TechnologicalInnovation Achievement
China HouseholdElectric ApplianceResearch Institute
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Award NameAwarding AuthorityPhotos of certi?cates/awards
Top 10 Refrigerator Brands inthe Industry (2023-2024)
China Household ElectricAppliance ResearchInstitute
Annual Innovative Brand
(2023-2024)
China Household ElectricAppliance ResearchInstitute
Innovative Design Brand
National HouseholdElectric Appliance IndustryInformation Center
“Ultra Energy-Saving” AirConditioner Series Awarded“2023 Energy-Saving andEco-Friendly Product” Honor
Chinese Association ofRefrigeration
Award NameAwarding AuthorityPhotos of certi?cates/awards
Changhong Air ConditionerHonored as “ExcellentBrand” and “LeadingBrand” in the Heat Pump
Industry
Chinese Association ofRefrigeration
Top 10 Industrial Designers in
Anhui Province
Anhui Industrial DesignIndustry Alliance
Top 10 Innovative ListedCompanies in Anhui Province
(2024)
Anhui Innovation andDevelopment Research
Institute
Top 50 Leading Enterprisesin China’s Industrial DigitalTransformation (2nd Session,
2024)
e-works Digital Enterprise
Network
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Materiality Assessment
During the preparation of this Report, the Company followed theSelf-Regulatory Guidelines No. 17 for CompaniesListed on Shenzhen Stock Exchange No. 17—Sustainability Report (Trial)issued by the Shenzhen Stock Exchange(hereinafter referred to as the “Guidelines”) andthe Self-Regulatory Guidance No. 3 for Companies Listed onShenzhen Stock Exchange—Sustainability Report Preparation, while referencing theReference Indicator Systemfor ESG Report of Listed Companies Controlled by Centrally-administrated SOEsissued by the State-owned AssetsSupervision and Administration Commission of the State Council. In addition to the topics outlined in these rules,the Company identi?ed other material issues based on industry characteristics, operational realities, and businessmodels, resulting in a total of 21 potential ESG-related topics.In the materiality assessment process, the Company adopted a dual materiality framework: on one hand, evaluatingthe potential impact of each topic on the economy, society, and the environment (i.e., impact materiality), andon the other hand, assessing the risks and opportunities each topic may bring to corporate value creation (i.e.,?nancial materiality). To further enhance the scienti?c rigor of the assessment, the Company incorporated strategicdevelopment direction and the key concerns of internal and external stakeholders into the framework, forming atriple materiality assessment system that includes strategic alignment.To ensure the comprehensiveness and accuracy of ESG topic identi?cation, the Company conducted on-site duediligence and background research. The research involved interviews with department heads, key employees,suppliers, and shareholders, as well as studies on the sustainability context of the Company’s operational regions,industry characteristics, and product lifecycles. Special attention was given to key factors influencing ESG topicselection and their associated risks and opportunities. The research included an in-depth analysis of global andregional sustainability trends, policy and regulatory developments, and local sustainability challenges, such aslocal guidance documents, industry standards and regulatory requirements, ESG rating agencies’ latest topic listsand weightings for the durable consumer goods industry, and recent ESG report themes of peer companies.The Company collected stakeholder opinions through online questionnaires, gathering financial materialityinsights from internal stakeholders and impact materiality insights from external stakeholders, ultimately forminga materiality list and conducting an importance assessment. Internal stakeholders included mid-to-seniormanagement, department heads, and subsidiary leaders with in-depth knowledge of the Company’s financialperformance. External stakeholders included employees, consumers, clients, suppliers, partners, governmentagencies, media, the public, and industry associations.
StakeholdersExpectations & demandsResponses & actions
?Internal control of risks
?Anti-corruption & anti-fraud
?Risk investigation and assessment?Complaint handling mechanism
?Ensure service standards?Enhance service quality
?Improve salary & bene?ts system?Optimize career development paths?Diverse training programs?Employee welfare & cultural activities
?Ensure service standards?Enhance service quality
?Service quality?Protection of customer rights
?Rural revitalization
?Support for public welfare
?Compliant operations
?Compliance with business ethics
?Supply chain management
?Accurate information disclosure
?Investor communication
?ESG performance improvement
?Adequate disclosure of information
?Diverse communication channels
?Enhance ESG practices
?Accurate information disclosure
?Investor communication
?ESG performance improvement
?Compensation & bene?ts
?Promotion mechanism
?Employee growth & development
?Employee care
Government
Customers
Employees
Community
Partners
Investors
Dual Materiality Analysis
Due Diligence and Stakeholder Engagement
A total of responses were collectedemployees and from senior management.
After testing the feasibility of the online questionnaire, the Companyinvited stakeholders to participate through relevant departments.
1,684
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Conclusions of Materiality Analysis
Changhong Meiling 2024 Dual Materiality Topics List
In 2024, based on theGuidelines, stakeholder feedback, and the Company’s actual circumstances, we revisited thecompleteness and appropriateness of the topics, adding and removing certain topics. Deleted topics were mergedinto other topics as indicators for disclosure. Additionally, we adjusted the names of some topics to better alignwith the Guidelines’ naming requirements and disclosed them in the Report.
“Carbon Emissions” “Employee Compensation and Bene?ts” “Customer Service” “Diversity and Equal Opportunity”“Intellectual Property Management”
“Employee Rights Protection” “Information Security and Privacy Protection” “Circular Economy” “Sustainability-Related Governance” “Environmental Compliance Management” “Anti-Unfair Competition”“Ecosystems and Biodiversity”
“Waste Emissions” adjusted to “Pollution Prevention and Control” “Water Resource Management” adjusted to “Water Resource Utilization” “Energy Management” adjusted to “Energy Utilization” “Employee Health and Safety” adjusted to “Occupational Health and Safety” “Product Quality and Safety” adjusted to “Product and Service Safety and Quality” “Product Innovation” adjusted to “Innovation-Driven Development” “Anti-Corruption and Bribery” adjusted to “Business Ethics and Anti-Corruption” “Corporate Governance” adjusted to “Company Governance”“Compliance Operations” adjusted to “Compliance Management”
Deleted
Topic
AddedTopics
Modi?edTopics
High Financial and Impact Materiality Topics
Low Financial and Impact Materiality Topics
High Financial Materiality, Low Impact Materiality Topics
Low Financial Materiality, High Impact Materiality Topics
●Innovation-Driven Development●Supply Chain Management●Product and Service Safety and Quality●Energy Utilization●Employee Rights Protection●Employee Training and Development
●Environmental Compliance Management
●Anti-Unfair Competition
●Social Responsibility
●Ecosystemsand Biodiversity
●Climate Change Mitigation
●Pollution Prevention and Control
●Compliance Management
●Business Ethics and Anti-Corruption●Information Security and Privacy Protection●CircularEconomy●Occupational Health and Safety●Water Resource Utilization●Sustainability-RelatedGovernance●Corporate Governance●Green Products
impact materiality
Matrix of Material Issues
?nancial materiality
Innovation-Driven Development
Product and ServiceSafety and QualityEnergy Utilization
Green Products
Supply Chain ManagementClimate Change Mitigation
Anti-Unfair Competition
Social ResponsibilityEcosystems and Biodiversity
Employee Training and Development
Business Ethics and Anti-Corruption
Sustainability-Related GovernanceInformation Security and Privacy Protection
Employee Rights Protection
Circular EconomyCorporate GovernanceEnvironmental ComplianceManagement
Water Resource Utilization
Occupational Health and Safety
Compliance ManagementPollution Prevention and Control
ESG
ESG
Deepening ESG GovernanceCapabilities
Sustainable development has become a core issue of global concern, with governments,businesses, and the public collaborating to drive its realization. Changhong Meiling activelyresponds to this trend by systematically improving its ESG management system in accordance withnational laws, regulations, and corporate governance standards, deeply integrating ESG principlesinto its governance practices.
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
To ensure the deep integration and e?cient coordination of ESG strategies with the Company’s operations anddevelopment, the Company established a “three-tier linkage” sustainable development governance frameworkduring the reporting period, comprehensively enhancing the systematic nature and execution of ESG management.This framework designates the Board of Directors as the highest responsible body, with core members of theBoard forming the ESG Management Committee as the overarching leadership body for ESG initiatives. The ESGManagement Committee is supported by an ESG Working Group, which is responsible for the daily executionof committee affairs, implementation of resolutions, and advancement of related tasks, ensuring the effectiveimplementation of the ESG Management Committee’s strategic deployments and management requirements.Through hierarchical and professional ESG management operations, the Company has laid a solid organizationalfoundation for achieving sustainable development goals.
Sustainable Development Governance Framework
Organizational Structure and Scope of Responsibilities
Sustainable Development Mechanism Construction
Review and approve the Company’s ESG strategic plans,objectives, governance framework, and key policies.Review and approve the Company’s ESG report and thedisclosure of signi?cant ESG governance information.Review and approve major ESG matters and risk response plansrelated to ESG.Research and formulate the Company’s ESG strategic plans,objectives, and management system.Evaluate and review the Company’s ESG strategies, risks, andimplementation.Review the Company’s ESG report.Handle other matters authorized by the Board of Directors andother issues stipulated by relevant laws and regulations.Promote the standardization and institutionalization of ESGinitiatives and ful?ll relevant approval procedures.Implement the Company’s ESG matters, strengthencoordination and communication across departments, andadvance the execution of ESG-related tasks.Prepare ESG-related reports, ful?ll the requirements of the ESGManagement Committee, collect and compile indicators andinformation from various departments and subsidiaries, anddisclose the ESG report.Monitor future ESG development trends, stay informed aboutESG-related laws and regulations, ensure ESG developmentaligns with strategic plans, address risks and issues in dailymanagement, report suggestions and opinions, etc.
Decision-
MakingTier
ExecutionTier
ManagementTier
Board of Directors
ManagementCommittee
ESG Working Group
During the reporting period, the Company o?cially issued theImplementation Rules forthe Board ESG Management Committee, serving as the core guiding document for ESGinitiatives and providing a solid foundation for the standardization of the ESG governancesystem. These rules clarify the responsibilities, workflows, and decision-makingmechanisms of the ESG Management Committee, further optimizing the Company’sESG governance framework and enhancing ESG strategic planning and institutionaldevelopment.
Incorporated key performance indicators (KPIs) for ESG topics, such as talent cultivation,environmental management, workplace safety, occupational health, technologicalinnovation, and major responsibility accident management, into the comprehensiveperformance evaluation system for senior management. This includes assessing theirresponsibilities in promoting ESG initiatives, such as researching and formulatingESG strategic plans, objectives, and management systems, as well as evaluating theCompany’s ESG strategies, risks, and implementation performance.
The ESG Management Committee regularly organizes specialized meetings, with outcomespromptly submitted to the Board of Directors as key references for strategic decision-making and feedback to the ESG Working Group to guide subsequent task execution.To ensure the continuity and effectiveness of ESG governance, the ESG ManagementCommittee holds at least one formal meeting annually.
Established internal mechanisms to monitor and oversee ESG-related matters, withthe ESG Management Committee primarily responsible for guiding the effectiveimplementation of environmental protection, social responsibility, and governancestandardization.
InternalPolicies
EvaluationMechanism
InformationReportingMechanism
SupervisionMechanism
MechanismSpeci?c Actions
◆◆
◆◆◆◆
◆◆◆
◆
◆
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
To further deepen the sustainable development strategy, enhance the professional skills and comprehensivecapabilities of relevant personnel, and comprehensively promote the practice and innovation of ESG initiatives,the Company conducted the 2023 ESG Report Summary and Rating Special Training during the reporting period.This training systematically outlined the key improvement points and best practices for ESG work, laying a solidfoundation for the in-depth development and continuous enhancement of the Company’s ESG initiatives.Additionally, the training strengthened employees’ understanding of ESG concepts, fostering a broad consensusacross the Company to lead with ESG principles and drive high-quality development. This has injected strongmomentum into the Company’s long-term development in the ESG ?eld.
Changhong Meiling is unwavering in its commitment to high-quality sustainable development, actively respondingto the national 14th Five-Year Plan and subsequent development strategies. The Company is deeply implementingthe “Carbon Peak and Carbon Neutrality” goals, driving the green future of intelligent manufacturing. Itproactively fulfills corporate social responsibilities, focusing on employee rights, consumer rights, communitydevelopment, and public welfare, promoting social harmony and prosperity. The Company has established a well-structured governance system, improving a clear and e?ective corporate governance structure to ensure e?cientand compliant corporate governance.Looking ahead, Changhong Meiling adheres to its vision and mission of “Meiling, Let Better Days Come”, ?rmlypursuing its sustainable development strategy. The Company is fully committed to upgrading manufacturingand transforming services, creating environmentally friendly and low-carbon consumer electronics throughtechnological and model innovation, driving the green development of the entire industry, and striving to createvalue for all stakeholders.With “Smart Green Future” as its core positioning, Changhong Meiling has formulated a medium- and long-term ESG strategic plan covering six strategic areas, centered on being a “Green Lifestyle Advocate, TechnologicalInnovation Driver, and Compliance Governance Practitioner”. The strategy is supported by organizational,institutional, capability, cultural, and ?nancial safeguards, fully integrating green transformation and intelligentupgrading, demonstrating the Company’s con?dence in leading the industry’s sustainable development.
The core objective of the Company’s risk management is to build a closed-loop management mechanismencompassing “risk identification—remediation—tracking and early warning—remediation verification”. Byimplementing differentiated and precise management strategies, the Company strengthens the supervision andexecution of the entire risk control process. This mechanism aims to comprehensively identify potential risks,take targeted remediation measures in a timely manner, and ensure continuous improvement and effectiveimplementation of risk management through dynamic tracking and early warning systems, ultimately achievingsystematic, re?ned, and e?cient risk management.In terms of management mechanisms, the Company has established a Compliance and Risk Control Committee, ledby senior management and the executive team, to oversee risk management and internal control. The Committeestrictly adheres to theRisk Management System, focusing on key business areas such as procurement, sales,?nance, and engineering, and de?nes risk management red lines to ensure the integrity and e?ectiveness of theinternal control system. Annually, the Company conducts comprehensive risk identification and assessment instrategic, financial, compliance, market, operational, and legal areas, using scientific risk assessment models tocategorize risks into high, medium, and low levels, and forms a detailed risk identi?cation list. Based on this, theCompany assigns responsibility for risk events to specific individuals and units, conducts regular reviews andremediation, and ensures the e?ective implementation of risk prevention and mitigation measures, continuouslyimproving risk management capabilities.
ESG Capability Enhancement
Sustainable Development Strategy
Guided by clear risk management objectives, the Company has established a comprehensive risk managementsystem covering risk identification, assessment, monitoring, and response. It has also established a routine riskmanagement reporting mechanism to ensure transparency and timely decision-making.
Sustainable Development Risk Management2023 ESG Report Summary and Rating TrainingSpecial Meeting on ESG Work Deployment
Changhong Meiling: Empowering a Green FutureEnabler of Smart Technology · Advocate of Green Lifestyles · Co-Builder of a Harmonious SocietyStrategicPlanningStrategic Focus AreasStrategicObjectives
Implementation
PathwaysSupportMechanisms
Excellence inGovernance
Climate Action
GreenProducts
SmartManufacturing
Quality-DrivenConsumption
ProgressTogether
OrganizationalSupport
InstitutionalSupport
CapabilityBuilding
CulturalAlignment
FinancialResourcing
Continuouslyoptimize thegovernanceand operationalsystem to enablethe Company’shigh-qualitydevelopmentHigh-E?ciencyGovernance SystemComplianceManagement SystemRisk ControlFramework
Driven by Dual-Carbon GoalLow-Carbon IndustrialParksClean EnergyUtilization
Green ProductUpgradingProduct EnergyE?ciency RateProduct QualityControl
TechnologicalInnovationProduct InnovationService Innovation
Product ExperienceOptimizationService UpgradingBrand Communication
Responsibility supplychainEmployee Rightscharitable causes
Achieve carbonpeak in ownoperations by2030 and carbonneutrality by 2060
Develop low-carbon productscompliant withnational standards,centered on "full-lifecycle greenmanagement
Accelerate thedevelopment of new
quality productive
forces and the
transformation
toward smart
manufacturing
Commit tocustomer-centricproduct operationsand user-focusedbranding, delivering
unique value to
consumers
Collaboratewith suppliers,employees, the localcommunity, and otherstakeholders to jointlypromote sustainable
development
Risk Management System
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The Company has established a robust reporting mechanism for signi?cant risk events to ensure that relevant unitsand departments can respond promptly and take e?ective measures in the event of major risks or sudden crises.After an incident occurs, the responsible personnel must immediately report to the Compliance and Risk Controllead department, the Chief Compliance O?cer (responsible leader), and higher-level units to ensure the timelinessand accuracy of information transmission. Additionally, the Company continuously monitors the progressof significant risk events through a monthly reporting mechanism, incorporating them into the performanceevaluation system to regularly track the advancement and completion of these events, ensuring closed-loopmanagement and e?ective implementation of risk management.
The Company has developed di?erentiated response strategies for various types of risks to ensure the precision andeffectiveness of risk management. The Company conducts monthly risk assessments, formulates correspondingresponse measures based on risk levels, and establishes comprehensive risk contingency plans and responsestrategies.
The Company has established a routine risk identification and assessment mechanism, conducting regular riskinvestigations and creating detailed risk ledgers based on risk levels to ensure that a comprehensive and systematicrisk assessment is conducted at least once a year. For identi?ed risks, the Company organizes the formulation ofcorresponding control measures or contingency plans, assigns responsibility to speci?c entities and individuals,and regularly tracks the implementation of these measures to ensure effective execution of risk management.Additionally, the Company maintains a ledger for signi?cant risks, with the risk management department organizingrelevant professional departments to guide and supervise the rectification work of responsible units, regularlytracking progress to achieve closed-loop risk management.
Risk ScopeManagement Measures
Changes in ExternalOperational Environment
Incremental Business Risks
Existing Business Risks
Track identi?ed risk events monthly, closely monitor developments,and take proactive and prudent preventive measures.Establish comprehensive risk contingency plans and responsestrategies, define phased progress and implementationrequirements, and hold regular meetings with the Risk ControlCompliance department to solicit input from relevant managementand decision-making layers.
We strictly adhere to domestic and international laws, regulations, industry standards, and regulatoryguidelines, and in light of the enterprise’s strategic positioning and business characteristics, systematicallysetting sustainable development goals and quantitative indicator systems that cover environmental, social, andgovernance (ESG) dimensions, ensuring operability, measurability, and strategic alignment. For the frameworkdesign, implementation pathways, and phased achievements of these goals and indicators, please refer to thechapters on material topics in this Report.
Sustainable Development Indicators and Goals
Risk Reporting and Supervision
Risk Response Strategies and Measures
Assess major risks, develop risk response proposals, and clarifyrisk resolution objectives, organizational leadership, managementprocesses, resource allocation, and speci?c response measures.
Environment
Changhong Meiling fully recognizes the importance of ecological and environmental protectionand actively ful?lls its corporate social responsibility. By focusing on climate change, optimizingits energy structures, and establishing a green production system, the Company has continuouslyreduced the environmental impact of its operations and explored new pathways for thecoordinated development of business operations and ecological environment.
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The Company has established its Dual Carbon Management Committee to support China’s dual carbongoals (peaking carbon emissions by 2030 and reaching carbon neutrality by 2060), drive green and low-carbondevelopment, and enhance corporate social responsibility and environmental awareness. The committee is led bythe Company’s president, while dual carbon projects are implemented by various departments. The committeeholds regular and ad-hoc meetings to develop overall action plans, coordinate carbon reduction efforts acrossdepartments. These departments also organize regular meetings to identify and assess actual or potential risks andopportunities in reducing carbon emissions. The Dual Carbon Working Group formulates project evaluation plans,re?nes supporting reward and penalty mechanisms, and assesses departmental performance quarterly based onproject implementation progress. Additionally, we invite third-party organizations to verify and calculate carbonemissions data to continuously enhance the professional skills and capabilities of relevant personnel.
With reference to the climate scenario models in the Sixth Assessment Report (AR6) of the United NationsIntergovernmental Panel on Climate Change (IPCC), we selected two pathways, SSP5-8.5 and SSP1-2.6,for climate scenario analysis of the changes in the external environment of the Company’s operations,including ecological, economic, and social factors. We identi?ed various risks and opportunities that maya?ect our business under these scenarios. In addition, we developed a climate change response strategy toensure that our operational strategy is adapted to the global climate transition.
General process of climate-related scenario analysis
De?ne the range ofthe climate-relatedscenario analysis
Determinevariables forscenario analysisChoose climate-related scenarios
Identify scenarioanalysis methods
Conduct climate-related scenarioanalysis
Climate Change Response
Climate-related Strategy
Climate-Related Governance
Climate-Related Scenario Analysis and AdaptabilityAssessment
Responsible for setting theCompany’s dual carbontargets and implementationplans; guiding the WorkingGroup in advancing variousinitiatives and providing it withmanagement and resourcesupport; and overseeingand evaluating progress andmaking key decisions.
Responsible for overseeingcarbon emission managementacross departments; breakingdown indicators to set carbonreduction targets and plans fordepartments; implementingcarbon reduction projects andpromoting relevant technologies;and regularly reporting progressto the Dual Carbon ManagementCommittee.
Responsible for overseeing dualcarbon project management,including planning, progresscontrol, and quality assurance;facilitating interdepartmentalcollaboration; assisting inmonitoring project executionand evaluating outcomes; andreporting regularly to the DualCarbon Management Committee.
Dual CarbonManagement Committee
Dual CarbonWorking Group
Dual CarbonManagement O?ce
Step 1Step 2Step 3Step 5Step 4
Dual CarbonManagement CommitteeDual Carbon Working Group
Dual CarbonManagement O?ce
*Implementation of dual carbon projects
Departments
Logistics andTransportationProductionR&D
MarketingSupply Chain
* Routine managementand promotion of dual-carbon projects* Research on basic low-carbon technology
Four-Element Framework for Climate Change Response
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
TypeClimate-related riskRisk descriptionOpportunity descriptionFinancial impactImpact levelImpact durationMitigation measures
Physical risks (SSP 5-8.5)情景
Short-term
More severe extreme
weather
The Company and its major subsidiaries,located in areas such as Hefei City,Mianyang City, Jingdezhen City, andZhongshan City, may be susceptible toextreme weather events such as typhoons,extremerainfall, and ?ooding.
Strengthen resilience againstextreme weather and naturaldisastersEnhance risk management forclimate crises and businesscontinuity
Increased maintenance and repaircosts for warehouses and otherinfrastructureDamage to facilities and equipment,and risks of factory shutdowns andsupply chaindisruptions lead toreduced output and revenue
Medium
Short- tomedium-term
Plan production and logistics inadvance based on early warningsfrom meteorological agencies,minimizing negative impacts ofextreme weatherDevelop emergency responseplans for natural disasters andconduct regular emergency drillsLong-term
Rising averagetemperatures
In 2024, the average temperature in AnhuiProvince reached 17.4°C, 1.2°C abovethe historical average, with six regionalheatwave events, marking the warmestyear on record
Strengthen resilience againstextreme weather and naturaldisastersEnhance risk management forclimate crises and businesscontinuity
Potential increase in operationalcosts (due to higher energyconsumption)
LowLong-term
Implement heat mitigationmeasures to protect employeesAvoid outdoor operations duringpeak heat hours
Risk of prolongeddroughts
According to the World Resources Institute(WRI) Aqueduct Water Risk Atlas, theCompany’s major production basesare in high-risk areas (Among them, thefacilities in Mianyang City are classi?ed asfacing “extremely high” physical waterrisk, scoring between 4 and 5 on the riskscale)
Potential water shortages affectproduction stability and revenueIncreased operational costs fromsecuring alternative or backup watersources
Medium
Medium- to
long-term
Optimize production processes,adopt water-efficient equipment,and implement water savingmeasuresEstablish emergency waterreserves to ensure stableproduction
ScenarioScenario referenceTemperature increaseScenario descriptionHigh-emissionscenario
Shared Socioeconomic Pathway SSP5-8.5 by the IPCC
More than 4°C (relative to pre-industrial levels)
This scenario is generally characterized by high emissions, pronounced developmental inequalities, and heavy relianceon fossil fuels. Under this scenario, physical risks are relatively high, while transition risks are relatively low; governmentsdo not implement climate policies; and energy demand and greenhouse gas emissions continue to rise, leading topersistent global surface temperature increases and an escalating frequency of extreme climate events.Low-emissionscenario
Shared Socioeconomic Pathway SSP1-2.6 by the IPCC
Below 2°C (relative to pre-industrial levels)
This scenario integrates a sustainable socio-economic development pathway with a low radiative forcing scenario. It isoften described as a future pathway characterized by “the coordinated development of the green transition and climateactions”. Under this scenario, transition risks are relatively high, while physical risks are relatively low. This scenarioaims to achieve the long-term targets of theParis Agreement(limiting global temperature rise to well below 2°Candpursue e?orts to limit the increase to 1.5°C).Climate-Related Risks and Opportunities
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
TypeClimate-related riskRisk descriptionOpportunity descriptionFinancial impactImpact levelImpact durationMitigation measures
Transitionrisks (SSP1-2.6)
Policy and legal
Policy and legal risksfor exported products
The Company’s exported products mayface carbon tari?s, carbon footprintregulation requirements, and otherpolicy restrictions
Emerging markets in the MiddleEast, Africa, Latin America,and Southeast Asia have alarge population base andrising demand for essentialhome appliances (such as airconditioners, and refrigerators)due to frequent heatwaves andconsumption upgrades
Increasing operational andcompliance costs due to the EUcarbon tari?s and the ongoing carbonreduction e?orts in the internationalcommunityExpanding product sales leading tosales growth
Medium
Medium- to
long-term
Closely monitor changes ininternational and domesticenvironmental and carbon-related laws, regulations andpolicies, and ensure compliancewith overseas businessrequirementsExpand factory and productcarbon footprint certifications,track carbon tariff policies andrequirements, assess export costsand adjust business planningpromptlyContinuously promote R&D onhigh-efficiency products, anddevelop low-energy-consumptionproduct lines
Mandatoryrequirements andregulation for existingproducts and services(e.g., upgrading ofenergy e?ciencystandards)
Countries are pursuing their carbonneutrality goals at a faster rate,potentially leading to stricter energyefficiency standards for appliances suchas refrigerators and air conditioners (e.g.,China’s new national standards, andthe EU’s ErP Directive).
Higher energy efficiencystandards raise entry barriers,forcing smaller firms out due tocost pressure or technologicalconstraints, while industryleaders gain market sharethrough R&D and the scale e?ect
Significant investment requiredfor developing high-efficiencytechnologies (e.g., invertercompressors, and heat pumptechnology) or upgrading productionlinesPotential to secure governmentsubsidies or tax incentives to increasenon-operating income or reducetaxes
HighMedium-term
Technology risks
Developing newproducts throughR&D and innovation
While the Company continues toinvest in R&D to launch innovative andcompetitive low-carbon products, thereare uncertainties in the technologytransition and there may be a risk offailureIf the Company fails to identify and applylow-carbon technologies promptly,competitors may pioneer energy-savingand environmentally friendly products,squeezing our market share
Master low-carbon technologiesto develop more e?cient, lower-emission products and expandmarket share in the low-carbonsector
Increased R&D investmentCosts from deploying newtechnologies and processesWrite-o? and premature replacementof existing outdated equipmentEfforts for greater competitiveness,and responding to shifts in consumerpreferences lead to increased revenue
High
Medium- tolong-term
Conduct early-stage researchand comprehensively assess thereturn-on-investment cycle andfeasibilityContinuously refine thetechnological paths of R&D andinnovation transformationActively apply low-carboninnovation capabilities, increasepatent applications, and increasethe number and types of patents
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
TypeClimate-related riskRisk descriptionOpportunity descriptionFinancial impactImpact levelImpact durationMitigation measures
Transitionrisks (SSP
1-2.6)
Market risks
Changing consumerbehavior
Market uncertainties create potentialmarket risks, such as shifting consumerdemand influenced by the Chinesegovernment’s subsidies for high-performance, environmentally-friendly,and healthy appliances. If the Companyfails to adapt, it may not be able tomeet consumer needs promptly ormay fall behind its peers in the marketcompetition.
In 2024, over 37 million consumers inChina participated in home appliancetrade-in programs, with strongpreference for green products. Amongthe eight main appliance categories,products with grade-1 energyefficiency accounted for 90% of totalsales. Data shows that around 60% ofconsumers prefer green and energy-efficient appliances, with a focus ontheir energy e?ciency
Revenue ?uctuationsHigh
Medium- tolong-term
Adjust product and service offeringsdynamically to align with market trendsAnalyze consumer preferences and developtargeted strategies to cater to consumerdemand
Rising raw material
costs
Low-carbon raw materials (e.g., eco-friendly refrigerants, and renewableplastics) are more expensive thantraditional materials
Expand the range of raw materialoptions, contributing to carbonreduction efforts across the supplychain
Higher production costs, and
reduced pro?ts
Medium
Medium- tolong-term
Optimize supply chain management andestablish long-term procurement agreementswith low-carbon material suppliersExplore cost-effective alternative materialsand collaborate with suppliers on low-carbonmaterial R&DAdjust product pricingReputation risks
Increasedstakeholderconcerns ornegative feedback
The Company’s performancein addressing climate change isincreasingly being widely scrutinizedby regulators, investors, ratingagencies, suppliers, the publicand other relevant parties. Failureto communicate timely withstakeholders may lead to negativefeedback
Proactively communicate withstakeholders to establish a stronggreen and low-carbon brand image
Failure to meet stakeholderexpectations may cause theCompany to be challenged,leading to a drop in revenueA potential decline in thebrand’s market valuePotential higher investmentand ?nancing costs
Medium
Short- tolong-term
Establish a regularized stakeholdercommunication mechanismEnhance the quality of informationdisclosure, and disclose the Company’sprogress in addressing climate changeand the achievement of its targetsthrough annual ESG reportsStrengthen environmental protectionpublicity and enhance the Company’scredibility in environmental protectionShort-term: Within (and including) 1 year after the end of the reporting period of the Company’s sustainability informationMedium term: 1-5 years (including 5 years) after the end of the reporting period of the Company’s sustainability informationLong-term: More than 5 years after the end of the reporting period of the Company’s sustainability informationNote
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
In response to climate-related risks and opportunities, Changhong Meiling has strategically adjusted its?nancial planning, resource allocation, and business deployment to systematically establish a low-carbontransition framework.
Changhong Meiling has actively responded to the national strategic “Dual Carbon” goal, and set clearlyits “3060” carbon emission goal, committing to achieve carbon peak by 2030 and carbon neutralityby 2060. To ensure the achievement of this long-term goal, the Company has also set detailed annualemission targets to reduce carbon emission intensity year by year, and has steadily pushed forwardthe emission reduction plan through energy-saving equipment renovation, optimization of productionprocesses, development of low-carbon products, promotion of clean energy, participation in green powertrading and other measures.
The Company emphasizes the management of climate-related impacts, risks, and opportunities, and hasestablished and improved systematic and scientific processes and methods to ensure that its strategies andoperations can e?ectively respond to the challenges and opportunities posed by climate change.
Impact of Climate-Related Risks and Opportunitieson Strategies and Decision-Making
Climate-Related Targets and Annual Progress
Management of Climate-Related Impacts, Risks, and Opportunities
Climate-Related Indicators and Targets
Climate-Related Impact,Risk, and OpportunityManagement Process
Phase out or renovate energy- and water-intensive product lines, andcontinuously optimize high-carbon processes, while enhancing energy costcontrol.Increase capital expenditure and R&D investment, focus on greentechnology research and clean energy application, and drive low-carbonbusiness upgrades.Deepen ESG collaboration with big clients, suppliers, and industryorganizations to jointly develop a green supply chain ecosystem, enhancingsupply chain resilience against demand ?uctuations.Consider future mergers, acquisitions, or divestitures, and optimize assetportfolios and regional distribution, continuously improving climateadaptability.
Analyze the target backgroundFormulate response measuresIdentify the risk listMonitor managementPrioritize risks Climate-related reporting
Understand the Company’sactivities, businessrelationships, externalenvironment, a?ectedstakeholders, etc.
Each department implements riskmanagement and response initiativesin a targeted manner, formulates its riskresponse plan, and then submit it to theESG Management Committee for review
Conduct climate scenario analysis underthe two paths of SSP 5-8.5 and SSP1-2.6 to identify their impacts, risks andopportunities; and assess the gaps betweenclimate-related targets and the status quo
The ESG Management Committeeregularly reviews key risk indicatorsand reports annually to the Board ofDirectors on critical climate-relatedrisks
Incorporate andprioritize the identi?edclimate-related risks
Regularly disclose theidenti?cation and management ofrisks and opportunities
Peak carbon emissions in our operations by 2030
and achieve carbon neutrality in our operations by 2060
Optimize high-carbon business
Pursue innovation-driven development
Promote collaborationand win-win results
Restructurestrategic assets
Overall goal
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Target information
Scope coverage
Scope 1 andScope 2
Mainly include naturalgas, purchasedelectricity, andpurchased steam
Direct emissionsfrom diesel, sewagetreatment, ?reextinguishing agents,and air conditioningrefrigerants are minimaland not included
For Scope 2emissions, a market-based approach isemployedEntities covered by the target
Changhong Meiling, Mianyang Meiling, and Jiangxi MeilingType of targetQuantitative targetIntensity targetBase year2023
Base year emissions:
Greenhouse gas emissions per million yuan of output value: 7.172 tCO
eTarget year2024
Projected emissions forthe target year
A 5% decrease in greenhouse gas emissions permillion yuan of output value compared to thebase yearEmission reduction targetcompared to the baseyear (%)
100%Emission reductiontarget compared to thecurrent year (%)
100%
The current year’semissions:
Greenhouse gas emissions per million yuan ofoutput value: 6.176 tCO
e, and a 13.89% decreasein greenhouse gas emissions permillion yuanof output valueTarget methodologyHas it been independentlyveri?ed by a third party
Not yet independently veri?ed by a third party; considering veri?cation through third-party organizations such as the Science Based Targets initiativeDescription of how thetarget will be achieved
May refer to (I) Climate Change Response 2. Greenhouse Gas Emission Reduction PracticesFor intensity targets,provide a descriptionof the method used tocalculate carbon intensity
Per million yuan of output valueFor Scope 3 targets,provide a descriptionof the method used tocalculate the coveredemissions
No Scope 3 emission targets have been established yet
Type20232024Change
Direct GHG emissions (Scope 1) (tCO
e)1,002.97 710.36 Down by 29.17%Indirect GHG emissions (Scope 2)(tCO
e)67,602.91 62,486.27 Down by 7.57%
Total carbon emissions (tCO
e)68,605.8863,196.63Down by 7.88%Total carbon emissions per millionyuanof output value
7.1726.176Down by 13.89%1: The data covers Changhong Meiling, Mianyang Meiling, and Jiangxi Meiling2: Greenhouse gas emissions primarily include Scope 1 and Scope 2 sources, namely natural gas, 2.purchasedelectricity, and purchased steam (Diesel, sewage treatment, ?re extinguishing agents, and air conditioningrefrigerants are excluded due to their minimal contribution to direct emissions.)3: In 2024, Changhong Meiling procured 20.37 million kWh of green electricity for its Hefei operations, accounting forapproximately 19% of its total electricity consumption in the region4: The 2024 emission factors used are as follows: electricity: 0.5568 kgCO
e/kWh; steam: 110 kgCO
e/GT; and naturalgas: 1.8222 kgCO
e/m?
Climate-Related Targets and Annual Progress
Annual Greenhouse Gas (GHG) Emissions
Note
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
In August 2024, Changhong Meiling engaged an external third-party organization to verify its carbonemissions for the refrigerator and washing machine industrial parks. The veri?cation statement con?rmedthat the total greenhouse gas emissions within the organizational and temporal boundaries comply withISO 14064:2018 requirements.
Greenhouse Gas Veri?cation
Greenhouse Gas Emissions Veri?cation Organization Statement
Activities and facilities under the control of Changhong Meiling Co.,Ltd.’s refrigerator and washing machine industrial parks
Category 1 (Direct GHG emissions and removals), and Category 2(Indirect GHG emissions from externally sourced energy)
Between January 1, 2023 and December 31, 2023
ISO 14064-1:2018, ISO 14064-3:2019, etc.
Operational control
Organizationalboundary
Reportingboundary
Temporal boundary
Veri?cation criteria
Method for de?ningorganizationalboundary
During the reporting period, all departments within the Company made collaborated efforts to promotecarbon reduction, and submitted a total of
carbon reduction projects, covering key perspectives such asmanufacturing, product design, supply chain and o?ce operation. These projects are designed to systematicallyreduce carbon emission intensity through technological innovation, process optimization and efficient use ofresources, so as to promote the Company’s green transition and sustainable development goal.
Supply
chainsystem
Greenenergy
Producttechnology
Manufacturing
Carboncontrolsystem
?ve major carbonreduction paths
energy-saving technology innovation; development of low-carbon materials; and low-carbon and environmentally-friendly packagingequipment renovation forenergy saving and consumptionreduction; lean production forimproved e?ciency; and energymanagement
cooperative developmentof low-carbon materialsand technologies
the carbon emission controlplatform; and carbonfootprint accountingplatform
purchased green power;and photovoltaic powergeneration system
GHG Emissions Reduction Practices
Manufacturing
ProductsSuppliers
87 implemented carbon reduction projects
O?ce operations
Recyclersand users
Logistics andtransportation
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
To effectively prevent and respond to environmental emergencies, Changhong Meiling has established anEnvironmental Emergency Response Command Department based on its internal environmental incidentclassi?cation standards. The department oversees four specialized emergency response teams to ensure timely ande?ective responses.
With significant emphasis on the prevention and response to environmental emergencies, the Company strictlycomplies with theEmergency Response Law of the People’s Republic of China, the National EnvironmentalEmergency Response Plan, the Measures for the Emergency Administration of Environmental Contingencies, andthe Provisional Measures for the Filing and Management of Environmental Emergency Response Plans in Enterprisesand Public Institutions (for Trail Implementation), among other relevant laws and regulations. During the reportingperiod, the Company successfully passed the Changhong Meiling Co., Ltd. Environmental Emergency ResponsePlan, further clarifying the emergency rescue procedures and response measures in the event of environmentalcontingencies.
For hazardous targets and potential risks, we implement targeted preventive measures based on possible accidentpathways, ensuring accident prevention. At the same time, we conduct enhanced supervision and regularinspections to ensure that preventive measures are e?ectively and e?ectively implemented.
The Company and its subsidiaries actively conduct training and drills for on-site emergency response to variousincidents such as fires and hazardous chemicals to test the employees’ capability to respond to emergenciesand raise their safety awareness. During the reporting period, the Company had neither major environmentalemergencies, nor case of being administratively penalized by relevant departments such as ecological environmentbodies or being held criminally liable for environmental emergencies.
Changhong Meiling upholds the green developmentphilosophy and strictly complies with theEnvironmentalProtection Law of the People’s Republic of China, the Lawof the People’s Republic of China on the Promotion ofCleaner Production, the Law of People’s Republic of Chinaon Environmental Impact Appraisal, and other relevantlaws and regulations. The Company has formulated policiessuch as the Environmental Protection Responsibility Systemand the Environmental Operation Control Procedure tocontinuously enhance environmental and occupationalhealth management. These efforts are made to ensurethat institutional frameworks and operational guidelinesare effectively implemented at every stage. Duringthe year, the Company and seven of its manufacturingsubsidiaries successfully obtained ISO 14001 EnvironmentalManagement System certi?cation.
Environmental Compliance Management
Emergency Management Framework
Environmental Emergency Management
On-Site Response Team
ComprehensiveCoordination Team
EmergencyMonitoring Team
LogisticsSupport Team
Key performance in 2024
The total environmental protection investmentduring the reporting period amounted to
In 2024, the Company recorded neither majorenvironmental violations nor non-complianceincidents.
representing a increase compared to theprevious year1,723.74
10,000 yuan
%
Comprehensive emergency response planfor environmental contingencies
On-site disposal plan for chemical leaksOn-site disposal plan for abnormaldischarge of waste gases or wastewater
On-site disposal plan for hazardous waste lossOn-site disposal plan for ?res and explosions associated with environmental events
Corrosion-resistant and leak-proof flooring, leak alarms, containmentbunds, spill trays, and personal protective equipment (PPE)
Fire hydrants, ?re extinguishers, accident containment pools, etc.
Diversion ditches, and liquid collection poolsConsumable parts (e.g., activated carbon)Consumable parts (e.g., emergency pumps)
Chemical leaksHazardous waste lossAbnormal waste gas emissionsAbnormal wastewater dischargeFire and explosion-related
incidents
Environmental Management System
Environmental Risk Assessment and Response
Incident typePreventive measures
Changhong Meiling’s environmental emergency response plan system
Environmental Emergency Response
Command Department
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
With great importance on pollution prevention and control, Changhong Meiling strictly complies with the
Environmental Protection Law of the People’s Republic of China, the Atmospheric Pollution Prevention andControl Law of the People’s Republic of China, the Water Pollution Prevention and Control Law, the Law of thePeople’s Republic of China on Prevention and Control of Environmental Pollution by Solid Waste, and the Law ofthe People’s Republic of China on the Prevention and Control of Noise Pollution, among other laws and regulations.Internally, the Company has established the Environmental Operation Control Procedures to regulate the dischargeof waste gases, wastewater, noise, and waste materials, aiming to minimize environmental impact.To enhance the management efficiency of environmental operation control, the Company has established an“Environmental Operation Control” ARCI Responsibility Matrix, which clearly defines the responsibilities, roles,and outcomes at the certain stage for each department involved. The participating departments include the Safety,Environmental Protection and Security Department, the Equipment Technology Institute of the EngineeringAcademy, the Manufacturing Department, the Supply Chain Management Department, the AdministrationDepartment, and other relevant entities. The Safety, Environmental Protection and Security Department, as thesupervisory and management body for environmental operation control, assumes the core coordinating role toensure that all functional units are efficiently coordinated in the environmental operation control managementprocess. Additionally, it is responsible for monitoring and evaluating the performance of each functional unit,ensuring that all environmental control factors are effectively managed to achieve the Company’s overallenvironmental management goals.
Strengthening Pollution Prevention and Control
Four-Element Framework for Pollution
Prevention and Control
Pollution Prevention and Control Strategy
Identi?cation of Risks and Opportunities, and Response Measures
Governance Related to Pollution Prevention and Control
Risk factor
Description of risks andopportunities
Impact level
Impactduration
Mitigation measures
Wastewatermanagement
Failures to clean septic tanks and oilseparators promptly lead to blockeddrainage systems and untreatedwastewater discharge
HighShort-termRegular cleaningMalfunctions of sewage treatmentstations prevent sewage fromreaching the emergency treatmentpool, and the sewage is treated anddischarged after the malfunctionwas resolved
HighShort-term
Establish sewage control guidelines,specifying response requirementsfor sewage treatment stationmalfunctionsChemical ratios in sewage treatmentdo not meet the standard, leading tosubstandard discharge
HighShort-term
Maintain chemical ratio records andassign personnel to review chemicalratios dailyRegular water quality testing andonline monitoring of facilities fortraceability and comparison
High
Short- tomedium-
term
Conduct monitoring and comparisonas per regulatory requirements andscheduled timelines
Risk factor
Description of risks andopportunities
Impact
level
Impactduration
Mitigation measures
Waste gascontrol
Failures to maintain and cleankitchen fume treatment facilitiesas required result in excessiveemissions
HighShort-term
Perform quarterly maintenance onwaste gas treatment facilities asrequiredMalfunctions of the productionexhaust system may lead tounsmooth emissions or failureto synchronize exhaust emissionfacilities with production processes
HighShort-term
Conduct inspections of exhaustfacilities at speci?c locations
Failures to properly seal waste paintand adhesive containers
HighShort-term
Minimize waste generation at thesource in dealing with uncontrolledemissions and the resultingenvironmental pollution
Wastemanagement
General solid waste and trashbins stored outdoors during rainyweather cause di?use pollution
High
Short- tomedium-term
Ensure properly covered storage foroutdoor solid waste and trash binsInadequate waste managementtraining leads to employees’insu?cient understanding of wastedisposal requirements
MediumMedium-term
Conduct training sessions on wastemanagement for employees
Unquali?ed hazardous wastedisposal service providers lead toillegal transfers
HighMedium-term
Engage certi?ed waste disposalagencies for legal hazardous wastetransfers, and obtain a transferreceipt and the data logging on thehazardous waste transfer platformHazardous waste reduction andcontrol measures help keep annualdisposal volumes below 100 tons
High
Short- tomedium-term
Develop and implement wastereduction and control plans
Chemical containers can be returnedto suppliers for reuse, reducinghazardous disposed waste volumes
Medium
Short- tomedium-term
Implement a centralized collectionsystem for recyclable materials(chemical containers) andprocurement arrangements forcyclical return to suppliers forrecyclingNoisecontrol
Noise emissions from equipmentexceed regulatory limits
High
Short- tomedium-term
Implement noise insulationmeasures, keep workshop doorsand windows closed, and provideemployees with earplugs
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
We assessed the uncertainty of environmental pollution risks through scenario analysis. By simulatingdifferent scenarios, we helped identify potential risks, formulate response strategies and improveoverall risk management capabilities. Through scenario analysis, the Company are in a better positionto formulate more flexible strategies to respond to possible environmental changes in the future, whileavoiding signi?cant losses caused by environmental events and reducing decision-making risks.
“Initial causes” include: work safety accidents, abnormal working conditions, power outages, gas outages, extremeweather, natural disasters, abnormal operation of pollution treatment facilities; “Secondary causes” include: failure orabnormal operation of environmental risk prevention and control facilities, problems with corrosion and seepage control, andcommunication failures.
Risk Adaptability Assessment
Event type
Substance/Pollutant ofenvironmental
risks
Incidentlocation
Releasepathway
Primary cause
Secondary
cause
Hazardconsequence
Emergencysupply
Abnormalwaste gasemissions
Particulatematters, non-methanehydrocarbons(NMHCs), etc.
Waste gastreatmentfacilities
Emissionsexceed thelimits
Malfunctionsor improperoperationof waste gastreatmentfacilities
Failure topromptlyaddressemissionsexceedingthe limits
Potentialimpact onambientatmosphericqualitywithin andaround theplant
Consumableparts
Abnormalwastewaterdischarge
COD,ammonianitrogen, etc.
Sewagetreatmentstations
Dischargeexceedsthe limits
Malfunctionsor improperoperation ofwastewatertreatmentfacilities
Failure topromptlyaddressdischargeexceedingthe limits
Increasedpressure ondownstreamsewagetreatmentplants
Consumableparts
Hazardouswasteleakage
Laboratorywaste liquids,oil-watermixtures,waste blackmaterials,waste whitematerials,waste paint,and wastemachine oil
Hazardouswaste
storagearea
Leakage
Damagedpackagingor improperhandling bypersonnel
Leakage ofhazardouswasteinto thestormwaterdrainagesystem
Failure torespondpromptlymay resultin hazardouswaste beingdischargedoutside theplant via thestormwatersystem
Diversionditches,and liquidcollectionpools
Changhong Meiling adheres to the core principles of life cycle analysis and pollution prevention and has developedtheEnvironmental Emergency Risk Assessment Report. Through process ?ow analysis, statistical analysis methods,and questionnaires, the Company conducted a comprehensive and in-depth evaluation of its environmentalfactors. Through continuous monitoring and analysis, the Company accurately identi?ed potential environmentalrisks and opportunities, providing a solid and science-based foundation for its green and sustainable developmentstrategies.In terms of process management, the Company calculated the ratio of the quantity of substances at risk ofenvironmental emergencies produced, used, stored and released by the Company to their threshold quantity (Q),the production process and environmental risk control level (M) and the sensitivity of environmental risk receptors(E). Based on these analyses, the Company assessed the risk levels of water and atmospheric environmentalemergencies, classifying them into three categories: general environmental risk, greater environmental risk, andsigni?cant environmental risk.
Impact, Risk, and Opportunity Management Related toPollution Prevention and Control
Environmental risk classi?cation ?ow diagram
Survey and analysis of theCompany’s basic situation
Risk level of air or water-related environmental emergencies
Control level ofproduction processand air or water-relatedenvironmental risks (M)
Calculate the ratio (Q) of the quantity ofair or water-related hazardous substances
to their threshold quantity
Q≥1Q＜1
The ratio (Q) of the quantity
of air or water-relatedhazardous substances totheir threshold quantity
The sensitivity ofair or water-relatedenvironmental riskreceptors (E)
The Company’s environmental emergency risk level
Generalenvironmental risk
Greaterenvironmental risk
Signi?cantenvironmental riskNote
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
In accordance with laws and regulations, national standards, and the requirements of theGuidelines, and based onour own actual situation, we have set relevant targets on the issues of pollutant discharge and waste management,and continuously tracked the implementation of the targets.During the reporting period, we accomplished the pollution prevention and control related sustainabledevelopment targets.
Indicators and Targets Related to Pollution Prevention and Control
IndicatorTargetTimeframe
Progress during the
reporting period
Wastewatermanagement
Ensure that annual wastewater discharge meets thelocal wastewater treatment plant’s acceptancestandards, with daily average concentrations of COD≤ 380 mg/L, NH-N ≤ 35 mg/L, and TP ≤ 5 mg/L.Conduct four wastewater tests per year, implementroutine rain-sewage diversion management, and carryout regular water quality tests; and complete at leastone traceability test and at least 12 comparative testsand 12 rainwater tests annually.
Short-termAchieved
Waste gasemissionscontrol
Ensure annual waste gas emissions comply withtheIntegrated Emission Standards for Air Pollutants(GB16297-1996) Level II standards: concentration≤ 120 mg/m?, and emission rate ≤ 10 kg/h. VOCemissions comply with the Emission ControlStandards for Volatile Organic Compounds fromIndustrial Enterprises (DB12/524-2014): concentration≤ 50 mg/m?, and emission rate ≤ 1.5 kg/h.Conduct regular emissions testing twice per year,ensuring standard NMHCs remain below 60 mg/m?.
Short-termAchieved
Noise control
Ensure that factory boundary noise levels meetEmission Standards for Industrial Enterprise Noise atBoundary (GB12348-2008) Category 3 standards: 65dB(A) for daytime and 55 dB(A) for nighttime.Conduct quarterly noise tests and at least one self-monitoring test per month.
Short-termAchieved
Wastemanagement
Submit monthly reports in accordance with o?cialsystem requirements.Strictly enforce regulations on hazardous and solidwaste collection, storage, and transfers.
Short-term
Achieved
The Company’s wastewater primarily originates from production processes and domestic use. To effectivelyreduce wastewater discharges, the Company has taken active measures to implement the rainwater-sewagediversion system. After treatment, the ?ve types of biochemical oxygen demand indicators, namely suspensions,chemical oxygen demand (COD), ammonia nitrogen, petroleum, pH value, should meet the emission standards,making the wastewater treatment compliance rate 100%.
Wastewater treatment facilities and operationsThe Company regularly calibrates and adjusts the operational parameters of wastewater treatmentequipment based on water quality variations and equipment performance, ensuring stable and e?cientwastewater treatment.Online monitoring devices have been installed at key discharge points of wastewater treatment facilitiesto monitor water quality parameters in real time.In addition to online monitoring, the Company conducts regular sampling and laboratory testing toensure the accuracy and reliability of data monitoring.Wastewater Discharge Indicators
Industrial wastewaterdischarge volume
Wastewater discharge volumeper million revenue(RMB)
Chemical oxygen demand(COD) discharge
Biochemical oxygen demand(BOD) discharge
Domestic wastewaterdischarge volume
Total wastewater dischargevolume763,511.73
37.61113.4218.49
312,195.121,075,706.85Tons
Tons per millionrevenue(RMB)
TonsTons
TonsTons
2024
1. The above-mentioned data includes that from Changhong Meiling, Hongmei Intelligent, Jiangxi Meiling, Mianyang Meiling,
Changmei Home Appliances, Ridian Technology, Zhongke Meiling, Zhongshan Changhong, and Changhong Air Conditioner.
2. The wastewater discharge volume exceeds water consumption due to multiple heavy rainstorms in Hefei Province in 2024,
which led to sewage back?ow into the industrial park, causing anomalies in discharge data.注
Suspensions, COD,ammonia nitrogen, etc.
Suspensions, COD,ammonia nitrogen, etc.
Wastewater generated during production isfirst treated in the ceramic waste collectionpool before entering the wastewatertreatment station. The treatment stationensures compliance with the IntegratedWastewater Discharge Standard beforedischargeVarious methods, including water recycling,are employed to eliminate industrialwastewaterPut wastewater into a pre-treatment pool forcentralized treatment and then discharge itinto the municipal sewage systemConduct regular cleaning of septic tanks,kitchen range hoods, and grease traps
Industrial wastewater
Domestic wastewater
Wastewater typeKey pollutantTreatment/Disposal method
Wastewater Management
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The Company’s waste gases mainly come from various organized and unorganized VOCs emitted during theproduction and manufacturing process, organic waste gases from boiler combustion, and particles from crushing,etc. During the reporting period, the Company formulated its monitoring plan, specifying the monitoring items,methods and frequency, and commissioned qualified external institutions to test the organized waste gases.According to the monitoring results, the emission pollutants all met the emission standards.
The Company regularly inspects and maintains the environmentally-friendly waste gas treatment facilities and equipment to ensure theirsmooth operation and prevent the waste gases from being directlydischarged without treatment due to equipment failure or leakage.
To further strengthen the philosophy of green production and standardize the management of waste gas emissions,the Company has conducted professional training for operators, managers and technicians related to waste gastreatment, which included the operation skills of waste gas treatment equipment, maintenance methods, safetyprecautions, and environmental protection laws and regulations.
To further reduce greenhouse gas emissionsand achieve ultra-low emissions of atmosphericpollutants, Changhong Air Conditioner hasupgraded and renovated major waste gastreatment processes, including upgrading thewave soldering waste gas treatment processfrom “dry filtration + UV photodissociation” to“three-stage filtration + UV photodissociation+ secondary activated carbon adsorption”; andupgrading the three-proofing coating waste gastreatment process from “dry ?ltration + activatedcarbon adsorption” to “three-stage filtration+ secondary activated carbon adsorption”.Meanwhile, an online monitoring system hasbeen introduced to monitor the operation of thefacilities in real time to ensure stable and reliableoperation.
Waste gas treatment equipment security
Specialized management training for waste gases
Waste gas treatment process renovation
Type of waste gasesKey pollutantTreatment/Disposal method
NMHCs, particulatematters, acrylonitrile,styrene, etc.
NMHCs
Waste gases from foaming, dispensing, spraying, rustprevention, thermoforming, soft foam, and extrusionprocesses undergo secondary activated carbon adsorptionbefore dischargeCrushing dust is collected by bag ?lters before dischargeSpraying dust is recycled by the powder recovery system ofthe equipment and reusedCuring waste gases are discharged after water spraying, mistremoval and activated carbon adsorptionThermal cleaning furnace waste gases are discharged aftersecondary activated carbon adsorption treatmentAcid mist from the laboratory center is treated by lye spraytower and then dischargedOrganic waste gases from the laboratory center are treatedby secondary activated carbon adsorption and thendischargedWelding fume and laser cutting waste gases are treated bycartridge dust collectors and then dischargedWaste gases from hazardous waste storage rooms aredischarged after secondary activated carbon adsorptiontreatmentThe upgrading and substitution of inks, coatings andcleaning agents in the Company’s air-conditioning industryare comprehensively promoted, with low VOC content as thestandard, reducing VOC emissions from the source
Waste gases fromprocesses
Waste gases fromhazardous wastestorage room
Waste Gas Treatment
Wave soldering and three-proo?ngcoating waste gas treatment facilities
Online monitoring interface of waste gas treatment facilitiesCollect waste gases in a sealed system and treat them witha secondary activated carbon adsorption device beforedischarge
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Waste Gas-Related IndicatorsTotal waste gas emissionsWaste gas emission intensity
Nitrogen oxide (NOx) emissions
Particulate matter (PM) emissions
Volatile organic compound (VOC) emissions
6.080.0002
0.27
0.47
0.67
TonsTons per millionrevenue(RMB)
Tons
Tons
Tons
2024
The above-mentioned data includes emissions from Changhong Meiling, Jiangxi Meiling, Mianyang Meiling,and Zhongke Meiling.
The Company takes noise management seriously and has implemented targeted measures to minimizeenvironmental pollution caused by noise. During the reporting period, third-party pollutant monitoring wasconducted by Changhong Meiling, Changhong Air Conditioner, and Ridian Technology. The results con?rmed thatall noise emission indicators met the required standards.
Changhong Meiling has continuously established and improved waste treatment and disposal control measures,clarified waste management requirements, measures and management objectives, and ensured orderlyimplementation of waste management initiatives. During the reporting period, the Company was not classi?ed as akey entity under environmental supervision.
Wastes generated in the Company’s operation include general waste and hazardous waste. For the managementof solid waste, the Company has clearly designated particular places for placement and set up clear markings,regularly ?led the general solid waste generated in the park, established a solid waste disposal ledger, and ensuredstandardized transfers.In terms of hazardous waste, the Company has formulated a detailed hazardous waste management plan based ontheHazardous Waste Management Plan, established a hazardous waste management ledger, applied digital meansfor real-time monitoring of hazardous waste, and prepared and re?ned the emergency disposal plan, minimizingleakage risks. The Company has also cooperated with quali?ed professional third-party organizations to collect andtreat hazardous waste on a regular basis.
E?ectively block noise transmissionpaths by installing noise barriers,noise walls, sound-absorbing cottonand other soundproo?ng facilities.
Equip personnel working in high-noiseenvironments with personal protectiveequipment such as earplugs. At thesame time, conduct regular hearingtests and health monitoring for staff sothat noise-induced health problems canbe detected and dealt with in a timelymanner.Implement vibration isolation measures for noisecaused by vibration, such as using elastic connectingcomponents (eg., springs or rubber pads) betweenmachinery equipment and foundations to preventvibration energy from being transmitted to otherstructures, thereby reducing the spread of noise.
Monitor the noise level in thepark to ensure that it meetsthe standard
1. Conduct monthly ?ling in Anhui Province’s solid waste system as required
2. Ensure solid implementation of three preventive measures for solid waste, namely,
“anti-leakage, anti-loss, anti-dissemination”
3.Strictly implement the solid waste collection, storage, transfer management
regulations
1. Conduct monthly reporting in Anhui Province’s solid waste system as
required
2. Develop the year’s hazardous waste management and transfer plans
3.Strictly implement the solid waste collection, storage, transfer management
regulations
Waste management program
Type of wasteMajor wasteTreatment/Disposal methodGeneral waste (recyclable)General waste(non-recyclable)Hazardous waste
Waste cartons, wastecopper, and waste metalDomestic garbage, andlabor protection productsHazardous waste
Sort waste and commission qualifiedentities for recyclingCommission qualified entities forincineration treatment to decomposeharmful waste materials into harmlesssubstancesCommission qualified entities forland?ll and incineration treatment
Noise Pollution Control
Waste Management
Noisepreventionand controlmeasures
Solid waste management
Hazardous waste management
Note
Its environmental performance was assessed at theC-classenterprise level, while itssubsidiary, Zhongke Meiling, achieved aB-classrating. Additionally, the Company maintaineda
% compliance rate for standardized solid waste disposal.
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Indicators Related to Waste Disposal
Hazardous waste generationHazardous waste generation per million revenue(RMB)
Non-hazardous waste generation per million revenue(RMB)Non-hazardous waste generation
671.750.02
1.11
31,712.26
TonsTons per million revenue(RMB)
Tons per million revenue(RMB)Tons
The above-mentioned data includes that from Changhong Meiling, Hongmei Intelligent, Jiangxi Meiling, Mianyang Meiling,Changmei Home Appliances, Ridian Technology, Zhongke Meiling, Zhongshan Changhong, and Changhong Air Conditioner.
To further enhance energy management, deepen energy conservation and emission reduction efforts, raisecorporate awareness of energy efficiency, and optimize energy utilization, the Company has established acomprehensive energy management system, and formulated and issued theEnergy Management Regulations,which clearly defines responsibilities and implementation pathways for energy conservation and emissionreduction. These include design controls for energy-efficient process renovations, management of key energy-consuming equipment and facilities, energy data collection, analysis, and continuous improvement. Additionally,the Company has set up an Energy Management Team responsible for overseeing and managing overall energyconsumption, setting and breaking down annual energy control targets, and incorporating energy and resourcee?ciency into performance assessments.
The Company adheres to the principle of “empowering mechanisms, stimulating internal potential, expandingrevenue sources, and reducing costs continuously” in its energy control strategy. Externally, business units areencouraged to leverage policies and resources to actively seek government subsidies and reform incentives throughvarious channels, and lower operational costs. Internally, the Company works to enhance cross-departmentalcollaboration, extensively explore energy-saving potential from multiple perspectives such as managementoptimization, process modi?cations, and technological upgrades, and formulate practical, science-based integratedenergy control plans and implementation measures. To incentivize participation, the Company has established anempowerment and incentive mechanism to foster innovation, and actively engage employees to innovate in energymanagement. These e?orts aim to continuously improve energy e?ciency, e?ectively control energy expenses andsupport the Company’s green and sustainable development goal.
Strengthening Energy Management
Four-Element Framework for Energy Management Governance Related to Energy Management
Strategies Related to Energy Management
Identi?cation of Risks and Opportunities, and Mitigation Measures
2024
Note
Risk factor
Description of risks andopportunities
Impactlevel
Impact durationMitigation measures
Policy andregulatoryrisks
Stricter energy consumptionrestrictions and policies maylead to production restrictionsor penalties
Low
Medium- to
long-term
Strengthen policy research andproactively promote processmodi?cations
Tightening carbon emissionpolicies will increase carboncosts
Medium
Medium-
term
Optimize energy structures to reducecarbon emission intensity
Operational
risks/opportunities
Ine?cient energymanagement will lead tohigher costs
High
Medium-
term
Introduce intelligent energymanagement systems to improvee?ciency and reduce energyconsumption
Equipment aging will lead toreduced e?ciency
High
Medium- to
long-term
Maintain and upgrade equipmentregularly to ensure e?cient operation
Fluctuations in energy priceswill result in rising costs
Low
Medium- tolong-term
Sign long-term energy supply contracts tosecure costs
Policy andregulatoryopportunities
Government subsidies and taxincentives for energy-savingtechnology renovations, aswell as green ?nance supportfor low-carbon transition
High
Medium- tolong-term
Monitor and respond to governmentpolicies on tax cuts, tariff reductions orreforms in the energy category, such ashydroelectricity, natural gas and steam,and promote the implementation ofgovernment energy-saving award andsubsidy projects and seek policy supportUtilize green finance tools to lowerfinancing costsprojects and seek policysupportBrand valueopportunities
Green transition will enhancecorporate image and boostinvestor con?dence insustainable development
MediumLong-term
Strengthen green branding initiatives,regularly disclose sustainability reports,and enhance corporate reputation
Externalenergy supplyopportunities
External energy supply canexpand business scope,increasing corporate revenue
HighShort-term
All external energy supply costs must becollected to ensure a balance betweenenergy consumption and expenditure
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The above-mentioned energy management improvement targets are mainly applicable to the production and manufacturingsystems, the Quality Assurance Department and Administration Department.
The Company has obtained IS0 50001:2018energy management system certi?cation.
The main energy sources used in the Company’s production and operation are purchased electricity, gasoline,diesel, natural gas, steam and renewable energy.To better promote various energy saving and emission reduction initiatives, the Company has taken measures tooptimize the energy structure and vigorously introduce renewable energy, such as building distributed rooftopphotovoltaic power stations and actively purchasing green power.
Energy Management Measures
Energy Consumption
Changhong Meiling places a high premium on the impact, risk and opportunity management related to energymanagement. For specific energy-consuming processes, procedures, and equipment, we conduct in-depthconsumption analyses of major energy sources to identify potential risks and energy-saving opportunities, andsystematically examine energy-consuming equipment and their e?ciency-in?uencing factors. We have determinedthe intensity of energy performance improvement opportunities based on three aspects: technical feasibility,economic feasibility, and adverse e?ects (safety, quality, and the environment). Meanwhile, we have establishedcorresponding control measures, plans, and targets, and kept monitoring operational control measures ande?ectiveness.During the reporting period, we implemented energy consumption monitoring for energy-intensive equipmenton a shift, daily, and monthly basis, speci?cally analyzing characteristic parameters such as the start-up rate, thequalified product rate and the energy consumption per unit of output. We drew energy consumption curves forkey equipment, and conducted benchmark management by comparing operational characteristic parametersamong similar types of equipment through analogy or normalization analysis, identifying performance gaps andimprovement strategies.In alignment with legal and regulatory requirements, national standards, and theGuidelines, as well as ouroperational realities, we have set specific targets for energy management topics and continuously tracked theirimplementation.During the reporting period, we successfully achieved our energy management targets.
Impact, Risk and Opportunity Management Related to Energy Management
Indicators and Targets Related to Energy Management
To actively promote the green transition, the Company has developed distributed photovoltaic (PV) powergeneration projects tailored to its actual scenarios. Changhong Meiling has installed distributed rooftopPV power stations on nine of its buildings, while its subsidiary, Ridian Technology, has installed 0.71934
The Company actively explores the market-oriented trading of green power. During thereporting period, it purchased more than20,000 green power certi?cates and consumed38,917,200 kWh of green power.
Distributed photovoltaic power generation project
Green power utilization
IndicatorTargetTimeframeProgress during reporting periodEnergymanagement
Reduce energy cost per unit by 10%compared to the previous year
Short-termAchievedReduce total energy cost by 10%compared to the previous year
Short-termAchievedNote
PV power stations
megawatts of PV panels. These projects operate under a“self-generation for self-consumption, with surplus powerfed into the grid” model, ensuring that the generatedelectricity ?rst meets internal demand, while any excess isintegrated into the national grid. This initiative has yieldedsigni?cant social and environmental bene?ts.In 2024, the Company’s total photovoltaic powergeneration reached 4,367,800kWh.
Case
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Energy Consumption
Total amount of electricity used
The Company’s photovoltaicgenerationOf which: total amount ofpurchased green power
Total gasoline consumption
Thermal power (steam) consumption
Total integrated energyconsumption
Total diesel consumption
Lique?ed petroleumgas consumption
Total energy consumptionper million yuan of revenue
Total natural gas consumption
Percentage of renewableenergy consumption
190.089
4.3678
38.9172
16.48
37,140
29,164.20
143.20
13.06
1.02
2.7410
22.77
Million kWhMillion kWhMillion kWh
Million kilojoules
Tons ofstandard coal
TonsTons
Tons
Tons of standard coal permillion revenue(RMB)
Million cubicmeters
%
The above-mentioned data includes that from Changhong Meiling, Hefei Industrial, Hongmei Intelligent, Jiangxi Meiling,Mianyang Meiling, Changmei Home Appliances, Ridian Technology, Zhongke Meiling, Zhongshan Changhong, andChanghong Air Conditioner.
To enhance its energy management system, the Company has actively advanced digital energy management bydeveloping and continuously optimizing the “Meiling Energy Management Platform”. This platform integratesan electricity demand management system and a key energy consumption online monitoring system, enablingprecise measurement, automatic data collection, and real-time monitoring of critical energy-consuming
In response to the national Energy Conservation Publicity Week’s slogan, “Green Transition and EnergyConservation Initiative”, the Company formulated its 2024 Energy Control Plan and established a dedicatedenergy management task force. Internally, it has implemented a comprehensive energy conservation and emissionreduction strategy, ensuring regular progress tracking and supervision. The Company has continuously upgradedits production processes and equipment to enhance energy e?ciency while promoting and practicing green o?ceinitiatives, embedding energy-saving efforts into daily operations to collectively drive energy conservation andconsumption reduction targets.
Digital Energy Management
Energy-Saving Initiatives
As of the end of the reporting period,Changhong Meiling and its subsidiarieshad obtained 84 energy conservation andenvironmental protection certi?cates.
The Company has conducted an in-depth analysis of energy consumption in its production andmanufacturing process, and reduced energy consumption by optimizing production processes andimproving equipment e?ciency.
Energy-Saving Upgrades
During the reporting period, the Company upgraded its extrusion line by replacing the 120mm screwwith the 130mm screw, resulting in a 20% increase in production capacity and a 5% reduction in energyconsumption. Additionally, the aluminum casting heating rings were replaced with energy-e?cient heatingrings, leading to an accumulated energy savings of 20 kWh per ton.
Note
equipment. Covering major energy sources suchas water, electricity, steam, and natural gas, theplatform has been applied to daily energy statistics,analysis, monitoring, and early warning, providingdata support for optimizing energy consumptionstructures and implementing energy-savingtechnological upgrades, effectively improvingenergy e?ciency.
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The Company installed electric remote switchvalves to control steam heating, ensuring thatsteam heating time is kept within an e?ectiverange to prevent energy waste caused byearly activation. After the upgrade, the systemachieved an annual savings of 200 tons ofsteam.
During the reporting period, Changhong AirConditioner upgraded a vacuum suctioncup system for the complete machine. Byredesigning the suction cup structure, theproject significantly reduced compressedair consumption during operation, leadingto a 50% decrease in compressed air usageper unit.
To reduce helium consumption and minimize theconsumption of scarce gases, Changhong Air Conditioneradded two helium purification systems in its helium leakdetection process. These systems helped recover over 80% ofhelium, signi?cantly improving the recycling e?ciency of thislimited natural resource.
Before improvemen
Before improvement
After improvement
After improvement
The helium puri?cation system
The Company has implemented a series of green o?ce measures in response to environmental protectioninitiatives. These e?orts aim to reduce resource consumption, lower o?ce-related carbon emissions, andpromote environmental sustainability.
Install energy control responsibility signs, prioritize the use of natural light, andeliminate unnecessary electricity usage. Replace hallway lights in office areas withsound-activated lighting.
Advocate paperless o?ce initiatives to reduce the consumption of paper and printingmaterials by reducing paper documents and encouraging electronic communicationvia emails and internal office systems. During the reporting period, the Companyreduced paper consumption by 3,705,700 sheets compared to 2023, a 47% year-on-year decrease.
Upgrade air conditioning circuits in living quarters with dedicated control linesand under centralized management. Set air conditioning temperatures based onenvironmental conditions to ensure energy efficiency while maintaining employeecomfort.
Encourage the use of energy-saving devices and appliances, place water conservationreminders near faucets, and enhance regular inspections to identify and fix leaks ino?ce areas, preventing water waste.
Adjust streetlight operating schedules based on day and night duration and replacecertain streetlights with solar-powered alternatives.
Place paper-saving reminders in restrooms of o?ce areas.
Upgrade pipelines to minimize water waste.
Green O?ce Initiatives
Power and water management in o?ce areas
O?ce supplies management
Install waste sorting bins to promote sustainable waste management.Set up new energy vehicle (NEV) charging stations to encourage eco-friendlycommuting among employees.
Advocating green lifestyles
Case
Case
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The Company actively organizes a series of energy conservation promotional activities during the EnergyConservation Week, including poster campaigns, specialized inspections, and training sessions. Leveragingdigital screens, online media platforms, and other communication channels, the Company has e?ectivelydisseminated energy-saving philosophies, fostered a strong energy conservation culture, and raisedemployee awareness, driving high-quality and sustainable corporate development.
Changhong Meiling strictly complies with theWater Law of the People’s Republic of China, the National WaterSaving Action Plan, and other relevant laws and regulations. The Company has formulated a series of policies,including the Water Resource Management System, the Water Saving Management Measures, and the Basic WaterSaving Regulations, which define the objectives, principles, measures, and responsibilities for water resourcemanagement. In 2023, in accordance with the Evaluating Guide for Water-Saving Enterprises (GB/T 119-2018), theCompany was recognized as an “Anhui Province Water-Saving Enterprise” as it met the relevant standard.The Company places great emphasis on water resource management, requiring all departments to regularly inspectand maintain water supply pipelines, faucets, and other water facilities to prevent leakage and waste. To furtheroptimize water usage, the Company has implemented water-saving equipment and appliances across its facilities.Water conservation reminders are prominently displayed at water consumption locations, and routine inspectionsand maintenance are conducted to detect and repair leaks. These measures ensure the efficient use of waterresources and contribute to the Company’s sustainable development goal.
Energy Conservation Promotion
Poster campaign
Energy conservation training and promotion
Water Resource Utilization
Water ResourceConsumption
Key performance in 2024
Total water consumption
Total amount of recycled water
Total water savings
Cubic meters
Water consumption permillion yuan of revenue
823,326.48
434,271.13
10,819.00
52.75
28.79
Cubicmeters
Cubicmeters
Cubicmeters
%
Cubic metersper millionrevenue(RMB)
The above-mentioned data includes that from Changhong Meiling, Hongmei Intelligent, Jiangxi Meiling, Mianyang Meiling,Hefei Industry, Ridian Technology, Zhongke Meiling, Zhongshan Changhong, and Changhong Air Conditioner.
Jiangxi Meiling has established an Energy Saving and Emission Reduction Task Force, led by the GeneralManager, with department heads serving as deputy leaders and unit heads as team members. This taskforce designates personnel to record regular meter readings at all water consumption locations, performsin-depth analyses of water consumption intensity, and inspects the integrity of water-consuming equipmentto prevent leaks and waste. During the reporting period, Jiangxi Meiling implemented a series of e?ectivewater conservation measures, consuming 19,100 cubic meters of recycled water and reducing waterconsumption intensity to 0.6 cubic meters per 10,000 yuan of revenue. These efforts have significantlyimproved water efficiency and laid a solid foundation for the Company’s green and sustainabledevelopment.
Implementation of Water Saving Measures
Note
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
During the reporting period, we employed the World Resources Institute (WRI) Water Risk Assessment Tool tomodel water availability scenarios for Changhong Meiling and its subsidiaries. The results indicated that Hefei City,Mianyang City, and Jingdezhen City face high water risk levels. To proactively mitigate such potential risks, we haveadopted a comprehensive approach, including creating emergency water storage facilities, recycling and reusingwater resources, implementing water-e?cient equipment, and enhancing water saving promotional campaigns,continuously strengthening our water resource management capabilities.
Water Risk Assessment
类别Hefei CityMianyang CityZhongshan CityJingdezhen CityPhysical risks towater resources
Very high (4-5)Very high (4-5)Medium-low (1-2)High (3-4)
Water stressVery high (>80%)Very high (>80%)Low (<10%)
Medium-high (20-40%)Drought risk
Medium-high(0.6-0.8)
Medium (0.4-0.6)Medium (0.4-0.6)Medium (0.4-0.6)
Groundwaterlevel decline
Medium-low (0-2cm/year)
Not signi?cantNot signi?cantNot signi?cant
Water risk assessment results
The overall water risk in the locations of Changhong Meiling and its subsidiaries
Mianyang City
Hefei City
Jingdezhen
Zhongshan City
Changhong Meiling actively supportsChina’s 14th Five-Year Plan for Circular Economy Developmentand strictlycomplies with laws and regulations such as theEnergy Conservation Law of the People’s Republic of Chinaand the Circular Economy Promotion Law of the People’s Republic of China. The Company adopts a refinedmanagement model, setting multiple circular economy targets, including energy saving and emission reduction,increasing the proportion of recyclable and renewable materials in products, and more. Through various energy-saving initiatives, the Company has reduced energy consumption, and prevented and minimized waste generation.We have prioritized the use of recyclable and renewable materials, and continuously promoted lightweightpackaging to enhance resource efficiency. Additionally, we have actively advocate and implement “trade-in”programs, reducing the energy consumption impact of long-term product usage. By recycling discarded appliances,we contribute to the realization of a circular economy.
Developing the Circular Economy
2024 Key Performance
Total material consumption inproduction and packaging
Consumption of renewable materials807,487.361,171,101.81TonsTonsThe above-mentioned data includes that from Changhong Meiling,Mianyang Meiling, Zhongke Meiling, ZhongshanChanghong, and Changhong Air Conditioner.
Changhong Air Conditioner has proactivelyresponded to theAction Plan for Large-ScaleEquipment Upgrades and Consumer GoodsTrade-Ins and the Measures to Support Large-Scale Equipment Upgrades and ConsumerGoods Trade-Ins. It has actively promotedtrade-in initiatives by organizing a total of1,759 promotional events during the reportingperiod. All collected old air conditioners weredismantled and properly reused by Kuaiyitian,a subsidiary of Changhong Group, ensuringthat the “trade-in” initiative is accompaniedby an effective “old appliance recyclingprocess”. The e?orts have contributed to theexpansion of the circular economy industryby providing a stable supply of more rawmaterials for the recycling sector.
“Trade-In” programs
“Home Expo Trade-Ins” live streaming event
Events and posters in the garden community
Note
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Changhong Meiling focuses on improving the workshopenvironment, enhancing production efficiency,meeting high-end product manufacturing standards,and increasing resource recycling rates. We work topromote the standardization of packaging containersto reduce employees’ operation time and minimizenatural resource consumption. By replacing traditionalcardboard boxes with EU standard containers or turnovercarts for all supplier materials, we are gradually realizinga cardboard box-free manufacturing process, enablingrecyclable and reusable packaging solutions.Changhong Air Conditioner adheres to the principles of lightweight, reduction, and recyclability when selectingpackaging materials. While ensuring product quality, it continuously improves packaging material utilization andrecycling rate, thereby reducing production costs and conserving natural resources.Additionally, the company encourages suppliers to adopt recyclable packaging materials. By the end of thereporting period, over 95% of front-end suppliers used recyclable packaging and more than 80% of local suppliersreused packaging materials, signi?cantly reducing both procurement costs and packaging material consumption.
To practice the green and sustainable developmentphilosophy and reduce the amount of solid waste generatedduring the product life cycle, Changhong Air Conditioneris actively exploring lightweight solutions for productmanuals. The company has introduced an innovativehybrid model that combines a simplified printed guidewith a digital user manual, gradually replacing traditionalpaper-based manuals. By 2024, the company had fullytransitioned to digital manuals, leading to a projectedpaper consumption reduction of over 70%. The effort hasnot only e?ectively reduced the consumption of resources,but also further fulfilled the company’s commitment tosustainable development.
Packaging material recycling
Comparison of original non-reusable packaging (left)
and current reusable packaging (right)
Comparison of original non-reusable packaging (left)
and current reusable packaging (right)
Comparison of original manual (left) andelectronic manual (right) for commercial
central air conditioners
In 2024, Changhong Air Conditionerprompted motor suppliers to choosegreen recycled plastic packaging,drastically reducing packagingwaste.
Changhong Meiling and its subsidiaries actively respond to international initiatives and agreements, includingtheUnited Nations Convention on Biological Diversity and the 2030 Agenda for Sustainable Development. TheCompany also follows domestic regulations such as theChina Biodiversity Conservation Strategy and Action Plan(2023–2030), conducting in-depth analyses of the potential impact of its business activities on biodiversity andthe ecological environment. The Company advocates for integrating biodiversity conservation into all aspects ofdaily operations and actively participates in initiatives such as soil erosion prevention and ecological restoration tominimize negative environmental impacts at the source. Through practical actions, the Company strives to advanceecological restoration e?orts.
Ecological and Biodiversity Conservation
Changhong Air Conditioner takes ecological and biodiversity conservation seriously. In 2024, the companyrevised and issued key environmental management policies, including theEnvironmental ProtectionResponsibility Management Measures and the Pollution Prevention Management Measures. Additionally,it conducted a systematic risk assessment across the entire product lifecycle, and studied the surroundingecosystem, ?ora and fauna. According to a compliance analysis against relevant ecological protection laws andregulations, Changhong Air Conditioner and its subsidiaries are not located within ecological protection red linezones, and their operational areas align with local environmental impact assessment plans. There are neithernature reserves nor protected wetlands in the vicinity. The environmental impact of the manufacturing processis controllable and does not pose a signi?cant threat to ecology or biodiversity.
Changhong Air Conditioner’s contribution to ecological and biodiversity conservationCase
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Advancing Green ManufacturingChanghong Meiling closely follows industry trends in green, efficient, and energy-saving technologies, firmlyupholding sustainability as a clear and guiding principle. The Company adopts a preventive approach, integratingenvironmental protection concepts throughout the entire product lifecycle—from raw material procurement,product design, manufacturing, and packaging to product recycling—to continuously drive the green transition ofits products.
The Company prioritizes the use of recyclable and renewable materials which arein line with regulations such as Waste Electrical and Electronic Equipment Directive(WEEE) and Restriction of Hazardous Substances Directive (RoHS).Apply bio-based materials in bulk, integrating a certain proportion of straw, bamboo?our, and other biodegradables into raw materials to reduce plastic usage.Enhance energy efficiency: Continuous R&D efforts focus on developing high-e?ciency, and low-energy-consuming products.
Green equipment upgrades: Upgrade production lines and outdated equipment toimprove e?ciency, eliminate high-energy-consuming and non-compliant deviceswhile reducing the consumption of scarce resources such as copper, aluminum,and tin to enhance the Company’s clean production.
Develop low-carbon and eco-friendly packaging materials to replace non-recyclable packaging.
Incorporate the concepts of being detachable, repairable and reusable in productdesign to improve the secondary utilization rate of the products, and mark thematerials well to reduce the di?culty in the recycling and disposal of the productsat the disposal stage.
Process innovation: Develop new surface decoration techniques to replacetraditional coating processes, improving material recyclability.
Adopt a simplified paper guide and an electronic version for user manuals toreduce paper consumption.
Standardized design: Core components are standardizedacross product lines,reducing the variety and quantity of parts.Eco-friendly refrigerants: Replace R22 refrigerants (including fluorocarboncompounds that harm the ozone layer) with R290 (propane), the mostenvironmentally friendly alternative.
Developing Green Products
Rawmaterialprocurement
Productdesign
Productmanufacturing
Productpackaging
Productrecycling
During the reporting period, Changhong Meiling actively responded to the call for carbon reduction andenergy conservation by upgrading its production lines. The application of variable frequency screw pumps inplastic vacuum forming machines led to a 60% reduction in pump energy consumption, while an upgradedheating system lowered heating energy consumption by 40%, significantly contributing to energy savingsand emissions reduction while ensuring production quality. Additionally, new extrusion equipment improvedproduction efficiency by 15%, achieving a 10% reduction in energy consumption and lowering carbon
In alignment with green manufacturing requirements, Changhong Air Conditioner accelerated theindustrialization of air conditioning evaporators, smaller-diameter condensers and new materials. Thecompany invested approximately RMB 70 million in upgrading green production equipment, including theinstallation of advanced, environmentally-friendly, and energy-e?cient manufacturing systems, and technicalupgrading of outdated equipment for complete machines and electronic control production lines. Over
Production line upgrades
The nitrogen wave soldering machine
emissions, thereby promoting e?cient and sustainable manufacturing.On the intelligent transformation front, the Company introducedindustrial robots to replace manual labor in tasks such as gluing, casinghandling, core component transfer, and automatic edge trimming—processes that are repetitive and pose safety risks. Following theupgrade, the production line’s average e?ciency increased by 17.5%,while the defect rate decreased by 6% on average.
100 high-energy-consuming, and non-compliant sets ofequipment were phased out.During the reporting period, Changhong Air Conditionerreplaced traditional wave soldering machines with twonitrogen wave soldering machines, which reduced solderdross waste by 40-50% per machine, effectively addressingthe high waste generation issue in conventional solderingprocesses.
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
To further reduce metal resourceconsumption, the companyestablished two fully automatedsmaller-diameter demonstration linesfor the two products, resulting in anannual copper resource savings of
17.15 tons, and significantly cutting
down raw material consumption.
Changhong Meiling has actively pursued research and developmentin green and sustainable packaging materials, focusing on reducingnon-recyclable materials, optimizing packaging structures, andadopting lightweight designs to minimize material usage. Keyinitiatives include developing paper-based packaging to achieve100% recyclability of packaging materials, introducing expandedpolypropylene (EPP) foam packaging bases to realize a 10%reduction in packaging weight, replacing non-recyclable expandablepolystyrene (EPS) foam in refrigerator interior protective componentsentirely with eco-friendly expandable polyethylene (EPE), paper-based composite protection, or EPP foam protection.
The Company continuously drives technological innovation in high-efficiency products, advancing theupgrade of green products. Changhong Conditioner has independently developed a super grade-1 energyefficiency cabinet air conditioner series, which leverages the composite condensing heat exchangetechnology and dynamic refrigerant ?ow matching technology. These innovations enable rapid cooling andheating while signi?cantly improving heat exchange e?ciency and boosting the energy e?ciency ratio. Understandard usage conditions, this series achieves an annual performance factor (APF) of 5.0. Compared to agrade-1 energy e?ciency product of the same capacity (APF 4.20), it can save over 300 kWh annually, furtherenhancing energy conservation and reducing household electricity consumption.
Using the super high-e?ciency compressor, centrifugal fan, ultra-low thermal conductivity VIP technology, and multi-componentultra-low thermal conductivity foaming system, the Companyhas developed a super grade-1 energy-efficient refrigeratorthat consumes 30% less energy than its grade-1 counterparts.Compared to previous models, this refrigerator series can reducegreenhouse gas emissions by 528 kg COe over a 10-year lifecycle.
Eco-friendly packaging materials
Green products
Changhong Conditioner’s super grade-1 energy e?ciency cabinet air conditioner series
Case
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
During the reporting period, we actively promoted the establishment of a full-lifecycle carbon emissionmanagement system. We engaged third-party certification organizations to conduct carbon footprintassessments for three refrigerator models and three washing machine models, in accordance with the ISO14067 product carbon footprint quanti?cation standard. By constructing a full-lifecycle assessment modelcovering the manufacturing, distribution, usage, and end-of-life stages, we accurately quanti?ed greenhousegas emissions at each phase. The successful certi?cation of these products not only provides data supportfor further low-carbon product improvements but also marks substantial progress in the development of theCompany’s green product portfolio, laying a solid foundation for future environmentally-friendly productinnovations.
Low-carbon product certi?cation
Refrigerator (MRF-252W) CarbonFootprint Certi?cation
Front-Loading WashingMachines (MG80-14586B2)Carbon Footprint Certi?cation
Refrigerator (MRF-424W) CarbonFootprint Certi?cation
Front-Loading WashingMachines (MG100-14596B2H)Carbon Footprint Certi?cation
Refrigerator (MRF-431W) CarbonFootprint Certi?cation
Front-Loading WashingMachines (MG120-14658D2H)Carbon Footprint Certi?cation
As a front-runner in prioritizing energy saving in green development within the home appliance industry,Changhong Meiling was certified as a “National Green Factory” in 2018. The Company has recognized greendevelopment as the basic corporate strategy and continuously promoted the building of green factories across itssubsidiaries in line with relevant evaluation standards.
Building Green Factories
To further enhance the green rating of its factory buildings, Changhong Air Conditioner, having already metthe standards of theGreen Building Evaluation Standard (GB/T 50378) and the Green Industrial BuildingEvaluation Standard (GB/T 50878)in its original design, replaced over 400 conventional 150W LED worklamps with 100W high-efficiency industrial LED lamps, the most cutting-edge solutions in the industry.This upgrade maintains optimal factory illumination while signi?cantly improving energy e?ciency andextending the lifespan of the lighting system, resulting in an annual electricity savings of approximately120,000 kWh.
Case
Social Responsibility
Changhong Meiling actively fulfills its social responsibilities. The company consistently adheres to thequality philosophy of "the enterprise's life depends on its products, and the soul of the product lies inits quality". Through a stable supplier cooperation system, the company provides comprehensive andpersonalized solutions to customers, ensuring the quality of its products and services. The companycontinuously explores new technologies and develops new products, accelerating the development of newquality productive forces. In terms of talent team building, the company values the development and well-being of its employees, creating a safe and comfortable working environment, improving company bene?tsand incentive mechanisms, and stimulating employees' creativity and work enthusiasm. Additionally, weactively respond to the rural revitalization strategy, participate in social welfare activities, and contributeMeiling's strength to the sustainable development of society.
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Risk FactorRisk/Opportunity Description
Impact
Level
ImpactDuration
Mitigation Measures
Policy andRegulatory
Risk
Upgrades in domestic andinternational energy e?ciencystandards and safety regulationsmay render existing products non-compliant with new requirements
High
Medium toLong Term
Strengthen policy tracking and research,promptly obtain and analyze the latestdomestic and international standards toensure product complianceStricter customer service-relatedpolicies may require increasedresources for compliancemanagement, potentially raisingoperational costs
Medium
Medium toLong Term
Clarify compliance standards for all after-sales service processes and regularly updatethem based on the latest regulations
OperationalRisk
Substandard raw materials orcomponents provided by suppliersmay a?ect overall productperformance and safety
HighShort Term
Regularly evaluate suppliers, phase outlow-performing ones, and introduce high-quality alternatives to ensure the quality ofraw material supplyLack of strict quality inspections inproduction may lead to inconsistentproduct quality or safety hazards
HighShort Term
Utilize advanced technologies such as AI toachieve 100% automated inspection of keyproduction processes, signi?cantly reducingquality risks
Inadequate after-sales servicesystems may result in delayedhandling of customer complaints,damaging brand reputation
Medium
Medium toLong Term
Establish a digital after-sales platform,leveraging the nationwide technical servicenetwork to implement a timely responsemechanism of "online diagnosis—localdispatch".Regularly conduct customer satisfactionsurveys and adjust internal managementmechanisms based on feedbackPolicy andRegulatoryOpportunity
Government implements subsidiesfor home appliance purchases andtrade-in programs to encourageconsumption
High
Medium toLong Term
Research and develop high-e?ciency, low-carbon, and environmentally friendly newproducts, quickly understand consumerpreferences, and seize a larger market shareunder this policy incentiveBrand ValueOpportunity
High-quality products and servicescan foster long-term customer loyalty,enhance brand value, and increasecorporate revenue
MediumLong Term
Maintain high-quality products and services,organize customer activities, increase brandpromotion, and enhance the company'sin?uence
Product and Service Safety and Quality
To enhance the quality level of the company's products and improve the quality supervision system, the companyhas established a three-tier quality management structure.
Four-Element Framework for Product and ServiceSafety and Quality Issues
Governance Related to Product and Service Safety and Quality
Strategy Related to Product and Service Safety and Quality
Based on the characteristics of the product lines, the companyimplements a four-level classification management (Level 1 to Level
4) for business units/subsidiaries. Differentiated quality goals, risk
thresholds, and audit supervision are set to achieve a grid-basedsupervision that is "comprehensive horizontally and thoroughvertically".Through mechanisms such as quarterly quality review meetingsand cross-departmental joint meetings, the company promotes theimplementation of quality improvement measures, ensuring thedynamic optimization of the internal control system.
Changhong Meiling has established a "Dual-Loop Drive" model to deepen the implementation of its qualitystrategy. In terms of the "inner loop" system management, the company adheres to the quality policy of "customer?rst, total quality, source control, and continuous improvement". Driven by the dual loops of "system managementand closed-loop resolution", tools such as FMEA (Failure Mode and Effects Analysis) are introduced during thedesign and development phase to achieve full lifecycle product management. In terms of the "outer loop" marketenvironment, the company insists on adopting advanced standards, continuously innovating and improving,e?ectively ensuring product quality and process stability. A policy early warning system has been established, andthe standardization committee regularly identi?es energy e?ciency regulations in countries/regions worldwide.Through the PLM（Product Lifecycle Management） system, rapid iteration of product parameters is achieved,ensuring the market competitiveness of the products.
Risk and Opportunity Identi?cation and Mitigation Measures
Throughthe General Quality Management Principlesand theImplementation Plan for Quality Supervision and Evaluation of theJoint-Stock Company, the strategic positioning and responsibilityboundaries of quality management are clari?ed. A quality supervisionand evaluation mechanism covering the entire industry chain has beenestablished, forming a quality management framework with Meiling'scharacteristics, leading the development of quality work.Top-Level
DesignHierarchical
ControlClosed-Loop Mechanism
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Changhong Meiling has formulated theComprehensive Quality Risk Control Measures, established a riskmanagement organizational structure, and clarified the quality risk control process. The company conductscomprehensive quality risk control activities to enhance overall quality risk management capabilities bystandardizing risk identi?cation, feedback, release, and improvement. This approach helps prevent major qualityrisks, reduce quality-related losses, and minimize market impact to the greatest extent.The company has built a three-tier prevention and control system of "identi?cation, traceability, and elimination",covering the entire process from product design, raw material procurement, production and manufacturing,logistics and transportation, to compliance certi?cation. This system ensures the identi?cation, traceability, andelimination of risk sources.
TheComprehensive Quality Risk Control Measureshave been established, along witha risk management organizational structure and a clear quality risk control process.Comprehensive quality risk control activities are carried out to enhance overall qualityrisk management capabilities by standardizing risk identification, feedback, release, andimprovement. This helps prevent major quality risks, control quality-related losses, andminimize market impact to the greatest extent.
The company has implementeda "180-Day Review" mechanism,covering all stages includingproduct design, raw materialprocurement, production andmanufacturing, logistics andtransportation, and compliancecerti?cation standards. Throughweekly risk identificationand monthly summaries, thecompany dynamically monitorschanges in risk sources andensures the actual closed-loopimprovement of risk sources.
A digital after-sales platform hasbeen established, leveraging thenationwide technical servicenetwork to achieve a timelyresponse mechanism of "onlinediagnosis—local dispatch". Theservice appointment rate within2 hours reaches 98.27%, and theservice completion rate within 24hours achieves 100%.
The company adheres to the quality philosophy of "the enterprise's life depends on its products, and the soul of theproduct lies in its quality". By maintaining high standards and strict requirements, the company controls productquality, continuously improves and innovates, enhances core competitiveness, and increases customer satisfactionand loyalty.The company and its subsidiaries have obtained ISO9001 quality management system certification and CNASaccreditation, gaining authoritative recognition for their management and technical capabilities. This providesstrong technical support for product development, production, and quality control.
In accordance with laws and regulations, national standards,The Guidelinesrequirements, and the company'sactual conditions, we have set relevant goals for product and service-related issues and continuously track theprogress of these goals.During the reporting period, we achieved the tasks and objectives related to products and services.
Management of Impacts, Risks, and Opportunities Related to Productand Service Safety and QualityIndicators and Goals Related to Product and Service Safety and Quality
Product Quality Management
RiskIdenti?cation
Closed-LoopControl
Emergency
Response
TargetTime FrameProgress During Reporting PeriodProductQualityQuality
Zero major quality incidentsShort TermNo major quality incidents occurredProduct Quality
100% compliance with energye?ciency standards
Short Term
All product lines passed CQC
certi?cationCustomer Service
Comprehensive customer satisfaction
rate above 90%
Medium to LongTerm
Completed
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Guided by the quality policy of "customer first, total quality, source control, and continuous improvement",the company strengthens the awareness of upstream processes serving downstream processes, encouragesall employees to actively participate in quality work, and enhances their sense of responsibility and qualityconsciousness. In daily operations, the company strictly implements this policy, continuously advances qualityimprovement measures, optimizes production processes, and steadily improves product quality year by year.During the reporting period, the company's product quali?cation rate reached 98.98%.
In accordance with theInterim Provisions on the Recall of Consumer Productsand other relevant laws andadministrative regulations, the company has speci?cally established theRefrigerator and Cabinet Product RecallManagement Regulations. These regulations clarify the trigger conditions, implementation processes, and divisionof responsibilities for product recalls, ensuring that recall actions can be swiftly and effectively initiated whenproduct safety hazards are identified, thereby minimizing potential harm to consumers. For quality issues inproducts exported to overseas markets, the company has formulated theExport Market Quality Issue HandlingRegulationsto ensure the rapid and e?ective resolution of any defects that may a?ect consumer health and safety,safeguarding customer interests. During the reporting period, the company did not experience any recall incidents.
The company strictly adheres to laws and regulations such as theAdvertising Law of the People's Republic ofChina, the Anti-Unfair Competition Law of the People's Republic of China, and theE-Commerce Law of the People'sRepublic of China, ensuring that marketing activities are executed effectively and in compliance. The companyrigorously controls the messaging across information output channels such as television, print media, portals, andstreaming platforms, ensuring that external promotional information is accurate, legal, and truthful.
Product Quality Assurance
Product Recall Management
Responsible Marketing
To ensure that the quality of components, semi-?nished products, and ?nished products meets the company'squality standards during incoming inspection, in-process inspection, and final inspection, the company hasestablished theInspection and Testing Control Proceduresto standardize product quality inspection andtesting processes.In terms of testing capabilities, the company's laboratory has been continuously certi?ed by CNAS for 16 years.From a performance perspective, the laboratory has comprehensive testing capabilities, including refrigerationperformance, safety performance, EMC, noise, RoHS, freshness preservation, simulation, voice laboratory, andphysical strength, meeting the testing requirements of international, regional, and national standards such asBV and SGS. In terms of equipment measurement, the company has established six measurement standardsacross four categories: length, thermology, mechanics, and electricity. It actively conducts internal self-inspection and calibration to ensure the timeliness and e?ectiveness of measurement and testing.
The company has formulated theMarket Issue Handling Regulations, which defines quality incidents,speci?es information ?ow management after incidents occur, and outlines response time requirements.In 2024, the company did not experience any major quality-related incidents involving products or services.
The company places great emphasis on building a high-quality talentpool through training and various activities, creating an excellenttalent platform. The company has established a Six Sigma certi?cationincentive mechanism to fully motivate employees and encouragethem to enhance their professional skills. It organizes "Quality Month"activities and hosts quality group achievement competitions, providingemployees with a stage to showcase their talents and exchangeexperiences. These e?orts continuously improve the company's qualitymanagement level and capabilities.
Product Quality Testing
Product Quality Incidents
Product Quality Training
Key Performance in 2024
the company organizedapproximately
company-wide and departmental-levelquality management trainingsessions.
In September 2024, the company held the ChanghongMeiling 2024 Quality Group Achievement Competition, wherevarious QC groups shared their experiences and exchangedresults. The achievements from this competition won secondprize in the provincial QC competition and first prize in themunicipal QC competition.
During the 2024 Quality Month, the company deepened employees' understanding and awareness ofquality through activities such as quality pledges, specialized training, and knowledge competitions.This strengthened the foundation of quality management and further enhanced the overall qualityconsciousness of the company's employees.
Customer Service and Rights
Case
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The company has established relevant management regulations to standardize sustainable promotionand responsible marketing. It commits to ensuring clear marketing narratives, respecting consumer rights,opposing unfair competition, avoiding the provision of false information about competitors, and refrainingfrom exaggerating environmental and social bene?ts. The company strictly reviews the use of advertisinglanguage in product sales across all business departments to prevent consumer misunderstandingsof advertisements, packaging, names, or descriptions. This standardizes brand promotion and avoidsinappropriate outputs that could lead to negative social impacts or legal risks for the brand.
The company regularly conducts training on responsible marketing for business departments andall marketing employees. Additionally, the company actively participates in the "Live E-commerceAdministrative Compliance Guidance Training" organized by the Hefei Administration for Market Regulationto ensure that marketing behaviors align with the principles of responsible marketing.
Product Compliance Promotion
Responsible Marketing Training
The company is customer-centric, precisely responding to consumers'evolving demands for interactive experiences and personalized needs.It is committed to creating convenient and high-quality product servicesthrough technological innovation, continuously enhancing productaccessibility. Leveraging the Zhihuijia model, the company has introduceddistributed interactive experiences and developed AI-powered homeappliances, building an interconnected, intelligent, and convenient homeecosystem.
With the goal of creating a better life through service, the company advocates for deeply understanding user needsand responding promptly, making "customer satisfaction" the core objective of its service e?orts. From pre-sales,in-sales, to after-sales, the company has fully implemented a "zero-distance" service model, successively launchingservice channels such as the o?cial website, corporate WeChat, Weibo, Quick Customer Service, and a nationwideuni?ed customer service hotline, as well as internet access points like e-commerce platforms, JD.com, and Taobao.This ensures seamless, round-the-clock, multi-scenario connectivity with users.To quickly respond to service demands, the company has introduced a service commitment of "not delaying asingle minute", leveraging its nationwide technical service network to provide timely professional maintenanceservices for a full range of smart home appliances, including refrigerators, freezers, and washing machines. Thisachieves a one-stop service model of "access-resolution-follow-up". The company standardizes the appearance,behavior, and language of on-site service personnel, utilizing "person, order, time" slice-based re?ned managementand Moment of Truth (MOT) management for key service links, thereby enhancing service e?ciency and quality.In response to evolving user needs, the company has launched an "integrated delivery, installation, service, andcollection" service, improving user experience and satisfaction.Additionally, the company regularly conducts customer visits, ensuring smooth coordination during major retailpromotions and periodic visits to top customers.
The company has established systems such as theCustomer Complaint Management Measures, theExport MarketQuality Issue Handling Regulations, and theProduct Quality Accountability Management Regulations. Thesesystems comprehensively manage customer complaints through classi?cation methods, division of managementresponsibilities, identi?cation standards, handling processes, control assessments, and analysis and improvement,building a rigorous and e?cient customer complaint management system.To promptly respond to service demands, the company has set up branches in provincial capital cities across thecountry, collaborating with over6,000authorized service providers and more than10,000service outletscovering cities, counties, towns, and villages. With over20,000star-certified service engineers, the companyprovides 7×24-hour service response. Engineers offer on-site services within 24 hours for urban areas and 48hours for suburban areas after appointment scheduling. Meanwhile, the company has established comprehensivemechanisms for handling user service demands, information management, follow-up assessments, complaintmanagement, and maintenance parts management, ensuring the smooth delivery of nationwide home appliancetechnical services.
Enhancing Product Accessibility
Customer Relationship Management
Handling of Customer Feedback
Through voice interaction technology, the company has implemented a "three-in-one"functionality of "chatting, reminders, and alarms". Elderly users can operate home appliancesvia voice commands, and the system can provide timed reminders for medication or dailytasks. In emergencies, saying "help me call the police" can remotely notify family membersand activate monitoring.
The company has developed the "Play with Peace of Mind, Control with Ease, Sleep withAssurance" ("Three Assurances") scenarios. These include remotely monitoring children'sactivities via smartphones, cross-category control of home appliances to soothe cryingchildren (e.g., remotely playing cartoons), and voice-controlled air conditioning functions thatavoid disturbing sleeping infants.
Smart Care for the Elderly
Scenario-Based Solutions for Mothers and Infants
Consumers can provide feedbackthrough multiple channels such as HeiMao Complaints, the 12315 platform,and the 4008 after-sales hotline.
For businesses with physical stores,customers can directly visit the store toreport issues to staff, who will resolvethe problem on-site or transfer it to therelevant department.
FeedbackChannels
Online Channel
O?ine Channel
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Complaint Handling Process
Promptly receive customer complaints through multiple channels andrecord key details of the feedback;
Assign tasks to the responsible department or designated personnelbased on the classi?cation;The responsible department quickly investigates, collects relevantevidence, and veri?es the situation;
Execute the agreed-upon solution promptly, with full tracking toensure proper handling;
Inform the customer of the investigation results and proposedsolutions, and seek their input;
Conduct follow-up within three working days after resolution tocon?rm customer satisfaction.
Formulate targeted solutions based on the veri?cation results;
Classify issues based on complaint content and assess their severity;ReceiveComplaints
Assign TasksInvestigateand Verify
ImplementSolutions
CommunicateFeedback
Follow-Up
DevelopSolutions
Classify andAssess
Customer Complaint Handling in 2024
Number of complaints relatedto products and services
Average response time forcustomer complaints
Average resolution timefor customer complaints
Customer complaintresolution rate
Customer complaintresponse rate
0.5
100100
hours hours
%%
The company regularly conducts satisfaction surveys targeting distributors, service providers, and users. Thesurvey content covers product performance and functionality, corporate image, product pricing, sales, and service,among other aspects.
Customer Satisfaction Surveys
In 2024, the Domestic Marketing Division conducted satisfaction surveys among users and distributors,and mainly designed the questionnaire based on product performance and functionality, corporate image,product pricing, sales, and service. The speci?c results are as follows:
In 2024, the International Marketing Division conducted a customer satisfaction survey targeting overseascustomers. The survey covered all business units in key overseas markets, including international large-scale manufacturers with their own brands, customers with large chain supermarkets and hypermarkets,and retail-oriented clients primarily consisting of wholesalers and traders of various sizes. The surveyfocused on eight aspects including order execution, product functionality, appearance, delivery timelines,and service quality. The speci?c results are as follows:
Domestic Customer Satisfaction Survey
Overseas Customer Satisfaction Survey
Survey Target
Survey Target
Survey Dimension
Survey Dimension
Valid Feedback
Satisfaction Rate
Satisfaction Rate
Change fromPrevious Year
Change fromPrevious Year
DomesticCustomers
OverseasCustomers
ComprehensiveSatisfaction
Comprehensive
Satisfaction
96.82%
98.80%
increase 0.63percentagepoints
responses
increase 1.30percentagepoints
Within
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Product Knowledge Promotion
Adhering to the principle of "user experience ?rst", the company has established an active service systemcovering the entire product line of refrigerators, freezers, and washing machines. Through exhibitions,distribution of promotional materials, and inviting customers and industry-leading media to visit thecompany (factory), customers can witness the production process and quality control procedures, helpingthem gain a deeper understanding of product information.
In 2024, the company's home air conditioning division conducted product knowledge training, competitiveproduct comparison training, and sales skills training for a total of 1,041 core customers across nationalbasic channels, JD specialty stores, and retail cloud platforms. Throughout the year, a total of 12,365training sessions were held, covering over 50,000 participants.
In 2024, the central air conditioning division conducted 29 empowerment training sessions for its overseasdistributor teams, covering corporate culture, product knowledge, and sales skills, reaching over 3,000participants.
Additionally, the company utilizes online platforms such as WeChat Official Accounts, Xiaohongshu,Douyin, and live streaming rooms to provide real-time answers to customer inquiries, making it easierfor customers to understand product details. By hosting new product launch events such as the "MeilingFrozen Fresh Full Lineup Refrigerator Launch Conference" and the "Meiling Five-Door Refrigerator LaunchConference", customers can experience product performance and advantages ?rsthand.
Product Knowledge Dissemination
Customer Training
JD Appliance & Changhong Meiling Co-Branded Store Factory Tour
2024 Central Air Conditioning TrainingMeiling Five-Door Refrigerator Launch ConferenceMeiling Frozen Fresh Full Lineup RefrigeratorLaunch Conference
Air Conditioning Product Training
2024 Home Air Conditioning Training
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
For refrigerator and washing machine products, Changhong Meiling's Refrigerator and Washing MachineCenter conducted on-site training services across all national channels. These sessions covered basicchannel customers (e.g., Lingpao customers, O2O JD specialty stores, Tmall), key channel (KT) customers,and customers in lower-tier markets. A total of 145,673 training sessions were held throughout the year,reaching over 200,000 participants.
Refrigerator and Washing Machine Product Training
2024 Refrigerator and Washing Machine Product Training
Data Security and Customer Privacy Protection
Changhong Meiling follows the principles of "combining human and technical defenses, focusing on core assetsecurity, prevention-?rst, and security compliance". The overarching policy for information security managementis "prevention-first, hierarchical responsibility, scientific management, and ensuring security". The companystrictly complies with laws and regulations such as theCybersecurity LawandCybersecurity Level Protection
2.0
. It has established relevant management systems, includingthe Information Security and ConfidentialityManagement Regulations, Computer Equipment Management Regulations, Security Training Management System,Key Business Information Systems and Master Data Management Regulations, and Con?dential Position PersonnelCon?dentiality Management Rules.These systems standardize the closed-loop management process for handlinginformation security incidents, including organization and functions, classi?cation and grading, reporting, handling,summarization, and accountability.The company has established an Information Security and Con?dentiality Committee and an Information Securityand Con?dentiality O?ce. The Committee is responsible for formulating the overall information security policiesfor the company and its subsidiaries, and clarifying the strategic goals for information security development. TheO?ce is responsible for information security planning, organizing information security operation and maintenance,and emergency response support.To ensure the security of internal data interactions, the company conducts audit management for the protectionof critical data before, during, and after processes, meeting information security protection requirements andsafeguarding the con?dentiality, integrity, and security of corporate sensitive information. For any violations of thecompany's information security and con?dentiality regulations that result in signi?cant impacts or losses to thecompany or individuals, investigations, assessments, and handling will be carried out in accordance with relevantregulations. During the reporting period, the company did not experience any data security breaches.
The company has built a "zero-trust" industrial internet cybersecurity architecture system, with the cybersecuritysituational awareness platform at its core. It has established an integrated "cloud-network-end" cybersecurityprotection platform and an industrial control security protection platform based on a "white environment"mechanism. This achieves the isolation of two networks (o?ce network and industrial control network) and thevisualization of the cybersecurity posture across three networks (o?ce network, industrial control network, and 5GSA private network). Centered on the three elements of "assets, threats, and vulnerabilities", the platform enablesmechanisms such as rapid localization of security incidents, early warning of unknown risks, and traceability of riskevents.On the data side, the company has constructed a data security protection platform. By employing controlmeasures such as encryption, identity authentication, and authorization, it ensures the con?dentiality, integrity,and availability of sensitive corporate information. This protects sensitive data throughout its lifecycle, includingediting, storage, access, and transmission, while enabling rapid traceability of data security incidents, risk analysis,and event monitoring.
Information SecurityInformation Security Management System
Information Security Management Platform
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Information Security Safeguards
Information Security Management Measures
Use professional ?rewalls for network boundary protection.Deploy professional EDR (Endpoint Detection and Response) protection platformson terminals.Manage employee internet usage through specialized hardware devices.Use strong encryption software to manage important data and ?les.
The company conducts monthly information security briefings, releasing basicinformation security safeguards, cutting-edge security incidents, and compliancerisk warnings. It also holds irregular information security training sessions toenhance employees' awareness and capabilities, strengthening the company'sinformation security management and protection.The company provides information security and con?dentiality training to relevantpersonnel and requires them to signCon?dentiality AgreementandCybersecurityResponsibility Statement. It classifies and grades the confidentiality levels ofrelevant file information (including user information), specifies confidentialityperiods and access scopes, and de?nes access controls and transmission securitymeasures for related ?les.The company regularly conducts system registration, evaluation, security testing,and attack-defense drills for core business systems. It also performs regularrecovery drills for business systems to ensure their security and stability.
All network devices and application servers must implement strong passwordpolicies.Relevant ?les and software data must be encrypted using appropriate software.Implement uni?ed identity authentication and control across the network.When employees require ERP access, the applicant must complete an ERP rolemenu permission request form, which is approved by their supervisor beforebeing submitted to the ERP administrator for authorization.Every six months, the company organizes a review of ERP permissions acrossall business departments to ensure their rationality. The system administratoradjusts permissions in the system based on the review results.
NetworkSecurityManagement
InformationSecurityTraining
Con?dentialityAgreements
SecurityTesting andDrills
PasswordManagement
ERPPermissionManagement
The company has established key systems such as theCybersecurity and User Privacy Protection ManagementMeasures, User Information Security Management Measures, andService Information System Data SecurityManagement Measures. These systems improve the customer privacy protection management mechanism andemploy multiple technical measures, including data encryption, access control, and regular audits, to ensurethe integrity and con?dentiality of information. In the event of an information leak, the company will take strictaccountability and act promptly to mitigate losses. During the reporting period, the company did not experienceany customer information leakage incidents.
Protecting Customer PrivacyCustomer Privacy Protection Management System
Customer Privacy Protection Measures
When collaborating with customers, contractors, and other relevant parties, the companysigns confidentiality agreements and related clauses. It requires these parties tomaintain the con?dentiality of company information and prohibits them from disclosingcustomer information to third parties without written consent. Violations may result inliability for infringement compensation; if a leak causes economic losses to the company,the responsible party bears full liability for compensation.The company has issued theNotice on Standardizing the Use of Con?dentiality Labels forDocuments in China. It strictly adheres to the "classi?cation and labeling" requirementsfor trade secrets, classifying, grading, and labeling all information assets within thedepartment. Any electronic documents, emails, paper documents, or drawings withoutproper labeling are prohibited from being circulated in any form.Based on employees' job roles and permissions, the company manages and transmitscustomer privacy information by department/employee, ensuring that informationdoes not cross or disperse between departments. Customer information is isolatedby department and responsibility to prevent disorderly flow of information betweendepartments.When transmitting important customer information internally, the company usesanonymization to e?ectively prevent employees with authorized access to sensitive datafrom unintentionally misusing or exposing it.
Con?dentiality
Agreements
ConfidentialDocumentLabelingManagement
PreventingCross-DepartmentData Sharing
Anonymization
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
2024 Key PerformanceNumber of data security and privacy-related trainingsAverage training duration per person of data
security and privacy-related trainings
Coverage rate of data security and privacy training
TimesHours
%Statistics cover Changhong Meiling, Hongmei Intelligent,Jiangxi Meiling, Mianyang Meiling,Ridian Technology, ChangmeiLiving Appliances, Changhong Air Conditioning, and Zhongke Meiling,Zhongshan Changhong.
Win-Win Cooperation
The company places great emphasis on the sustainability of its supply chain. To strengthen supply chain riskmanagement capabilities, it has formulated and issued theSupplier Management MeasuresandSupplier RiskManagement Standards, ensuring that all aspects of the supply chain are standardized, secure, and risk-controlled.Additionally, the company has established the SAP and ISRM Smart Supply Chain Collaboration Platform, whichintegrates procurement, production, and sales information with supplier systems. This enables real-time trackingof raw material inventory, production progress, and transportation status, achieving systematic and standardizedmanagement of the supplier lifecycle and ensuring the continuous and stable development of the supply chain.
Four-Element Framework for Supply ChainManagement IssuesGovernance Related to Supply Chain Management
Strategy Related to Supply Chain Management
Risk and Opportunity Identi?cation and Mitigation MeasuresRisk FactorRisk/Opportunity Description
Impact
Level
ImpactDuration
Mitigation Measures
Policy andRegulatory Risk
Stricter domestic andinternational environmentalregulations and new energye?ciency standards in Chinamay increase operational costsif new suppliers are sought
Medium
MediumTerm
Strengthen policy research andproactively identify new suppliers.Sign environmental agreementswith core suppliers to ensure theraw materials they provide complywith relevant standards
OperationalRisk
Fluctuations in raw materialprices and the higher costs oflow-carbon materials (e.g.,eco-friendly refrigerants,renewable plastics) comparedto traditional materials mayincrease production costs
Medium
Mediumto LongTerm
Optimize supply chain managementand sign long-term procurementagreements with material suppliers.Explore low-cost alternativematerials and collaborate withsuppliers to reduce procurementcostsSupply chain disruptionsdue to natural disasters(e.g., earthquakes, ?oods)or geopolitical con?icts maya?ect raw material supplyand production schedules,potentially increasingproduction costs
High
Medium
Term
Prioritize local suppliers and avoidsourcing raw materials from con?ict/disputed regions.Establish a diversi?ed suppliernetwork to avoid over-reliance on asingle supplier or regionIne?cient information ?owacross supply chain segmentsmay lead to inventory buildup,delivery delays, or quality issues
High
Mediumto Long
Term
Promote supply chain digitization toachieve real-time information sharingbetween the company and its supplychain
Technological
InnovationOpportunity
The application of technologiessuch as IoT, AI, and blockchaincan optimize supply chainmanagement, improvingtransparency and responsespeed
Medium
Mediumto Long
Term
Continuously optimize and improvethe SAP and ISRM Smart Supply ChainCollaboration Platform to enhancesupply chain management e?ciencyGreenTransformationOpportunity
Growing consumer andregulatory focus onenvironmental protectionpresents opportunities for greentransformation
Medium
Mediumto Long
Term
Adhere to green procurementpolicies and prioritize suppliers withenvironmental certi?cations
Brand ValueOpportunity
Building close collaborationswith upstream and downstreamenterprises can enhance supplychain e?ciency and strengthenbrand competitiveness
Medium
LongTerm
Establish a supply chain collaborationplatform to share demand forecastsand production plans
Note
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The company has built a scienti?c and comprehensive supplier system, establishing clear evaluation criteria forsupplier selection, review, assessment, and evaluation. It implements di?erentiated management of suppliers inits database. To ensure the continuity and stability of the supply chain, the company has established mechanismsfor supply chain risk identi?cation, risk assessment, and risk response. By leveraging digital platforms to reduceinformation barriers with suppliers and enhancing communication and collaboration with partners, the companyfully utilizes its strengths to promote harmonious, stable, and healthy supply chain development.
Based on laws and regulations, national standards,the Guidelinesrequirements, and the company's actualconditions, we have set relevant goals for supply chain management issues and continuously track their progress.During the reporting period, we achieved the tasks and objectives related to supply chain management.
Management of Impacts, Risks, and OpportunitiesRelated to Supply Chain Management
Indicators and Goals Related to Supply Chain Management
Changhong Meiling has established a comprehensive supplier management system, formulating the SupplierEvaluation Management Standardsto standardize strict supplier access and evaluation processes. The companyregularly conducts audits and assessments to continuously improve supplier capabilities and qualifications.We prioritize collaborating with suppliers that are reliable in quality, reputable, environmentally friendly, andscientifically managed. Annually, we evaluate suppliers based on product quality, new product collaboration,and business cooperation, compiling a list of quali?ed suppliers. The company implements a tiered managementmechanism based on supplier performance evaluation results, and regulates suppliers' breach of contract anddishonest behaviors through the establishment of aSupplier Blacklist, thereby continuously strengthening suppliermanagement.The company comprehensively considers multiple dimensions of indicators to accurately classify suppliers into fourlevels (strategic suppliers, preferred suppliers, general suppliers, and suppliers to be excluded), implementing adi?erentiated management mechanism.
In the era of sustainable development, we are committed to building a sustainable supply chain to lay a solidfoundation for the company's long-term development and social responsibility. Changhong Meiling pays attentionto suppliers' ESG performance and has formulated theSupplier Social Responsibility Agreement. From a lifecycleperspective, the agreement sets requirements for suppliers in multiple key areas of sustainable development.
Supplier Management
Supplier ESG Management
Suppliers are required to create a fair, just, and harmonious working environment,safeguarding employees' legal rights, including reasonable compensation, equalemployment opportunities, and ample career development space, ensuring everyemployee can work e?ciently with respect and care.
Suppliers are urged to prioritize employees' life and health, establish a sound safetymanagement system, equip necessary safety protection facilities, and conduct regularsafety training and emergency drills to eliminate safety hazards at the source and build astrong safety defense line for employees.Suppliers are encouraged to actively practice the concept of green development, adopteco-friendly materials and processes in production and operations, reduce energyconsumption and pollutant emissions, and participate in ecological protection initiativesto minimize negative impacts on the external environment.Suppliers are required to adhere to the principles of honesty, trustworthiness, integrity,and self-discipline in their business activities, resolutely resist bad behaviors such ascommercial bribery and unfair competition, and maintain a fair and orderly marketorder.
LaborRelations
Employee
Healthand Safety
EnvironmentalProtection
Business
Ethics
2024 Key PerformanceTotal number of suppliers atthe end of the reporting period
Proportion of supplierswith sustainability certi?cations
Amount of responsible (green)procurement
Localization rate of suppliers
Number of suppliers withsustainability certi?cations
2,106
40.36
1,236,667.83
36.45
Suppliers
%
10,000 RMB
%
Suppliers
1：The above data includes Changhong Meiling, Hefei Industrial, Hongmei Intelligent, Jiangxi Meiling, Mianyang Meiling,Changmei Living Appliances, Ridian Technology, Zhongke Meiling, Zhongshan Changhong, and Changhong Air Conditioning.2：Green procurement includes expenditures on materials with RoHS certi?cation and recyclable materials.
CategoryTargetTime FrameProgress DuringSupplier ESGManagement
100% signing rate of the Supplier Social Responsibility
Agreement
Short TermCompletedOver 20% of suppliers certi?ed by ISO14001 environmental
management system
Short TermCompletedLocalizedProcurement
Local supplier ratio exceeding 30%Short TermCompleted
Note
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Qualitymanagementsystem risks and
PCN risks
The company places great emphasis on enhancingsupplier capabilities and is committed to collaborativedevelopment with suppliers. To help suppliers improvetheir awareness of quality control and sustainabledevelopment, the company organized supplier trainingactivities during the reporting period, with a total of 276participants and a cumulative training duration of 859hours.
Supplier Training
Supply Chain Security
Industry Chain Collaboration and Cooperation
Supply Chain Risk Management
Based on the principles of prudence and comprehensiveness, the company has defined four major riskcategories, among which commercial risks and quality/technical risks are mandatory identi?cation items.
In the risk assessment process, the company hasestablished specialized compliance evaluationstandards for identi?ed risk items. By comprehensivelyconsidering the potential loss and probability ofoccurrence, supplier risk items are classi?ed into high,medium, and low levels to achieve more e?cient riskmanagement and control.
To respond to the call for green transformation and mitigate risks posed by stricter domestic and internationalenvironmental regulations and new energy e?ciency standards in China, the company requires suppliers to providematerials that comply with environmental directives such as RoHS, REACH, WEEE, and green packaging, as well asthe environmental regulations of target market countries and regions.
Risk Identi?cation
Risk Assessment
Risk Mitigation
Changhong Meiling consistently prioritizes the issue of conflict mines in its supply chain management, strivingto build a conflict-free supply chain. The company requires suppliers to understand and establish a "ConflictMinerals Policy", ensuring that the metals contained in the materials they provide, such as tantalum, tin, tungsten,and gold, are not sourced from armed con?icts or illegal mining. The company has assembled a professional andexperienced audit team that, in accordance with international standards and industry norms, employs advancedtesting technologies and scienti?c review processes to conduct comprehensive audits of suppliers' raw materialprocurement channels, traceability information management, and internal control mechanisms.
Changhong Meiling leverages its comprehensive advantages to engage in specialized collaborations, technicalsupport, and resource sharing with suppliers and partners, jointly promoting the green transformation andsustainable development of the industrial chain.
Con?ict-Free Minerals
Supplier diversi?cation strategy:
The company actively expands its supplier network. When a supplier isunable to deliver due to natural disasters, strikes, or raw material shortages,Changhong Meiling can quickly source required components from othersuppliers to avoid production halts.
Risk early warning mechanism:
Changhong Meiling has established the SAP and ISRM smart supply chaincollaboration platform, which integrates procurement, production, and salesdata from internal departments with supplier information systems. Thisenables real-time monitoring of raw material inventory, production progress,and transportation status. Additionally, the company has set up risk warningindicators. When the inventory level of a key raw material falls below acertain percentage of the safety stock, or when a supplier's delivery delay ratereaches a certain threshold, the system automatically issues a warning.
Supply ChainStability Risk
Supply ChainDelivery Risk
Commercial
Risks
Credit risksand integrityrisksQuality/Technical Risks
lowlevel
highlevel
medium
level
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Changhong Meiling's strategic partner, visited the Innovation Hall and delved into the frontlines of washingmachine manufacturing to gain insights into Meiling's industrial layout, technological innovations, andproduction operations. Following discussions during a symposium, the strategic partnership between the twoparties was further elevated. In the future, Changhong Meiling will continue to deepen its collaboration withstrategic partner, empowering industry development and enhancing user life experiences.
During the reporting period, Changmei Living Applianceso?cially joined the China Electrical Equipment IndustryAssociation, contributing Meiling's strength to thedevelopment of the electrical equipment industry.
Equal Treatment of Small and Medium
Enterprises (SMEs)Changhong Meiling applies the same payment terms to SMEs as it does to other enterprises, never discriminatingbased on company size. The company adheres to contractual agreements and repays debts on time. As of the endof the reporting period, there were no instances of overdue payments to SMEs.
Innovation-Driven Development
The company attaches great importance to and continuously strengthens the construction of its R&D innovationsystem. It has established a technical R&D architecture consisting of two institutes (Research Institute and AdvancedResearch Institute) and three centers (Testing and Experiment Center, User and Product Development Center,and Innovation Design Center). Utilizing a dual-drive model of "independent R&D + collaborative innovation",the company conducts innovative research across multiple fields, continuously expanding the boundariesof technological applications. In terms of internal system development, the company has implemented over20 innovation management regulations, including theProduct Design and Development Control Procedures,Technological Innovation Project Management Regulations, Product Development Project Management Measures,Enterprise Technical Standardization Management Regulations, Company Technical Expert Management Measures,Meiling R&D Points System Management Measures, Technological Innovation Project Assessment Measures,Product Development Project Assessment Measures, Annual Intellectual Property Special Assessment Plan, AnnualStandards and Speci?cations Incentive Plan, and Enterprise Technical Standardization Management Regulations.
During the reporting period, 8 of these regulations were updated and revised.
Changhong Meiling consistently adheres to a market-oriented approach, focusing on the development andapplication of high-tech and new products. The company emphasizes research on new materials and processes,as well as the acquisition of proprietary intellectual property rights, achieving a new pattern of "pre-researchingone generation, reserving one generation, and applying one generation" in technological research and productdevelopment. This has enabled the company to build its core technologies. In the future, the company will continueto advance in areas such as AI technology, inverter technology, simulation technology, freshness preservationtechnology, refrigeration technology, and new material technology.
Four-Element Framework for Innovation-DrivenIssuesGovernance Related to Innovation-Driven Development
Strategy Related to Innovation-Driven Development
AItechnology
invertertechnology
simulationtechnology
freshnesspreservationtechnology
refrigerationtechnology
new materialtechnology
Case
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Risk FactorRisk/Opportunity Description
ImpactLevel
ImpactDuration
Mitigation Measures
Market Risk
Developing smart homeappliances and energy-saving technologiesrequires signi?cant capitalinvestment, but marketacceptance and thecommercialization cycle oftechnologies are uncertain.The consumer education costfor smart home appliances ishigh, posing a risk of marketpromotion failure
High
MediumTerm
Adopt a "small steps, fastrunning" model to shortenproduct development cycles.Collaborate with universities toleverage academic resources,address technical pain points,reduce R&D cycles, and lowertrial-and-error costs
Increasing consumerdemand for high-end andpersonalized productsmay lead to inventorybuildup if R&D directionsare misaligned with marketneeds
Medium
MediumTerm
Fully implement theIPD (Integrated ProductDevelopment) process toestablish a business- andcustomer-oriented R&Dwork?ow
IntellectualProperty-Related Risks
Insu?cient patent protectionfor core technologies maylead to technology leakage
High
ShortTerm
Establish a patent early warningsystem to proactively avoidinfringement risksInternational patent barriers(e.g., EU energy e?ciencystandards) may restricttechnology exports
Medium
Medium
Term
Accelerate the localization oftechnology and productionby establishing overseas R&Dcenters in advance
MarketOpportunities
The dual-carbon goals drivedemand for high-e?ciency,low-emission products,making energy-e?cienttechnologies and low-energyproducts core growth areas
Medium
Mediumto Long-
term
Accelerate the development oflow-energy, environmentallyfriendly products to strengthencore competitiveness
Risk and Opportunity Identi?cation and Mitigation Measures
Changhong Meiling places great emphasis on managing the impacts, risks, and opportunities associated withinnovation-driven development. The company has established and improved systematic and scienti?c processesand methods to ensure that its strategies and operations can e?ectively address the challenges and opportunitiesbrought by innovation-driven initiatives. These management processes are integrated into the company's overallrisk management framework. For speci?c details, please refer to Section III, "Corporate ESG Governance (SustainableDevelopment Risk Management)".
In accordance with laws and regulations, national standards, the Guidelinesrequirements, and the company'sactual conditions, we have set relevant goals for innovation-driven development and continuously track theirprogress.During the reporting period, we achieved the tasks and objectives related to innovation-driven development.
The company attaches great importance to and continuously strengthens the construction of its R&D innovationsystem. By vigorously promoting technological innovation, the company enhances the creativity, collaboration, andsystematic nature of its R&D system, e?ectively improving the management e?ciency of its innovation and R&De?orts.
Management of Impacts, Risks, and Opportunities Related toInnovation-Driven Development
Indicators and Goals Related to Innovation-Driven Development
Innovation Management System
Technological Innovation ManagementChanghong Meiling consistently prioritizes technological innovation as the primary task of its development strategy.By focusing on technological and product innovation, the company builds its core competitiveness, solidifyingthe four cornerstones of "team, technology, platform, and product". Leveraging its cutting-edge R&D team andadvanced technological expertise, the company continuously optimizes its technological innovation management,creating a new pattern of coordinated development across multiple product categories, including refrigerators(and freezers), air conditioners, washing machines, major and small kitchen appliances, and biomedical low-temperature storage equipment.During the reporting period, the company further strengthened its R&D investment, continuously improved thedevelopment of scientific projects, the formulation and revision of technical standards, and the construction oftechnological platforms. The R&D investment reached 801.4122 million yuan, accounting for 2.80% of total revenue,representing a 14.10% year-on-year increase compared to 2023.
TargetTime FrameProgress During Reporting PeriodInnovation-Driven
Development
Technology commercialization
rate of 60%
Short Term
Completed (actual technologycommercialization rate: 75%)
The R&D investment amountedaccounting forrepresenting a year-on-year increase of
801.41222.8014.10 million yuan of total revenuecompared to 2023
Preparation NotesMessageMeilingGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernanceDeepening ESGMateriality AssessmentAbout ChanghongChairman’sReport
Centered around its ?ve major business segments—refrigerators and freezers, air conditioners, washingmachines, major and small kitchen appliances, and biomedical equipment—the company possesses anumber of national, provincial, and municipal-level scienti?c research and technical service platforms.These include:
To continuously stimulate innovation, attract and retain R&D personnel, and effectively incentivizetheir potential, the company has implemented an R&D points-based management system. This systembreaks away from the "equal distribution" principle and establishes a points calculation rule based onmultiple dimensions, including project level, advancement of technical completion indicators, technicalapplication value, quality improvement, and cost reduction. This quanti?es the work of R&D personnel,rewarding more for more work and promoting merit-based advancement.
The company's central laboratory has obtained CNAScertification, and its performance testing laboratory andnoise laboratory have been recognized by internationalorganizations such as CSA (Canada), Bureau Veritas(France), LEC (UK), BRANDT (France), Electrolux, GE, andOMNI. This further enhances the credibility of Meiling'slaboratory testing capabilities and provides strong supportfor the company's product exports.
2024 Hefei Postdoctoral Work Training Conference
Technological Innovation Initiatives
To more effectively drive R&D innovation, the company has introduced and fully implemented theIntegrated Product Development (IPD) process. This process is business- and customer-oriented, managingthe R&D work?ow with a focus on cross-departmental and cross-system collaboration. It promotes closecooperation among R&D, production, and sales departments, ensuring that technological innovations canbe quickly transformed into actual products and brought to market.
The company actively engages in "Industry-University-Research Collaboration", maintaining closepartnerships with universities, research institutions, and other third-party platforms. Externally, thecompany continues to promote industrial cooperation. Relying on its provincial-level key enterpriseresearch institute, the company has jointly established postdoctoral mobile workstations with academicinstitutions, attracting high-level talent and continuously strengthening its technological innovationcapabilities.During the reporting period, the company maintained long-term and close collaborations with universitiessuch as China Agricultural University, as well as research institutions including the China HouseholdElectrical Appliances Research Institute, Through various forms of technical cooperation and academicexchanges, the company has solidified its theoretical foundation and continuously elevated its level oftechnological innovation.
E?cient R&D Process
Industry-University-Research Collaboration
Innovation R&D Platform
Innovation Incentive Mechanism
In 2024, the R&D team across thecompany and its subsidiaries totaled
the total workforceof accounting for
representing a year-on-yearincrease of1,781
16.90
6.84
individuals% of the totalworkforce
%
%Percentage of R&D personnel received promotions andsalary increases based on their R&D points ranking
IPMT (Integrated Portfolio Management Team)
Cross-FunctionalTeam
Business & Customer-Centric Decision MakingMarket Planning ProcessProduct Development ProcessTechnology Development ProcessTools & EnablersProject Management, Training & IPD Maturity
SPT (Strategic Planning Team)
PDT (Product Development Team)TOT (Technology Development Team)
National-level platforms: 3 in total, such as the National Enterprise Technology Center, NationalIndustrial Design Center, and National Postdoctoral Research Station.Provincial and ministerial-level platforms: 9 in total, including the Anhui Provincial Green andEnergy-Efficient Refrigerator Engineering Technology Research Center, Anhui Provincial Energy-Saving and Freshness-Preserving Green Refrigerator Engineering Research Center, Anhui ProvincialIntelligent Home Appliance Manufacturing Innovation Center, and the Industrial (Refrigerator andFreezer) Product Quality Control and Technical Evaluation Laboratory recognized by the Ministry ofIndustry and Information Technology.Municipal-level platforms: 6 in total, such as the Mianyang Enterprise Technology Center and theMianyang Air Conditioner Product Simulation and Lean Design Innovation Center.
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
During the reporting period, Changhong Meiling collaborated with ZhejiangUniversity, Hefei University of Technology, and China Agricultural University on atotal of 4 scienti?c and technological projects, of which 2 were completed and 2are ongoing.In collaboration with Hefei University of Technology, the company researchedhousehold refrigerator food preservation technology for portioned cooked meals,winning the First Prize of Science and Technology Progress Award of China LightIndustry Council. As part of this project, the company led the formulation andrelease of 2 group standards and published 2 academic papers.In collaboration with China Agricultural University, the company researched theflavor components and influencing mechanisms of fresh meat, leading to theformulation and release of 1 group standard.
Changmei Living Appliances, through its collaboration with theChina University of Geosciences (Wuhan), successfully developed astrontium-rich mineralized filter. Utilizing advanced mineralizationtechnology, this ?lter e?ectively removes pollutants from water whilereleasing trace elements such as strontium, selenium, and zinc, whichare bene?cial to human health. This innovation signi?cantly enhancesthe quality and health value of drinking water products.
Collaborative Achievements
On-site Exchange for the CollaborativeProject with Zhejiang University: "Researchon Storage Characteristics and Health FactorRegulation Technology of Aquatic Products"
Zhongke Meiling's innovatively developed centrifuge products have been adopted by prestigiousinstitutions such as Tsinghua University and the Northeast Institute of Geography and Agroecology,Chinese Academy of Sciences. These products provide practical support for researchers in centrifugaltheory studies and, through Changhong Meiling's cutting-edge technology, better serve research inlife sciences, biological sciences, and other advanced scientific fields, ultimately contributing to theadvancement of China's foundational science and technology.
Zhongke Meiling has established a deep collaboration with Fudan University in Shanghai, launching anew scienti?c research scholarship program. The company will invest a total of 500,000 RMB to supportbasic medical research at Fudan University, fostering academic research and providing strong support forthe growth of scienti?c talent in higher education.
Case
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Industry collaboration and exchange serve as a crucial foundation for driving business developmentand technological innovation. Changhong Meiling actively organizes and participates in domestic andinternational industry innovation and technology exchanges, engaging with peers with an open mindsetto share best practices and industry trends. In 2024, the company continued to host and participate inindustry innovation and technology exchange events, including China Refrigerator Industry DevelopmentConference, China Household Appliance Technology Conference, China Appliance Science & TechnologyConference, IFA Berlin (Internationale Funkausstellung Berlin), the Appliance & Electronics World Expo(AWE) in Shanghai, and the Annual Conference of Anhui Provincial Association of Refrigeration. Thesee?orts have yielded signi?cant results in strengthening industry technical exchanges and learning.
The company has participated in the formulation and revision of industry standards and group standards multipletimes, contributing to the overall development level of the industry and the improvement of product quality.
Industry Exchange
2024 Annual Conference and Sci-tech ExchangeConference of Anhui Provincial Association ofRefrigeration
2024 Refrigerator Industry DevelopmentConference
Third Meeting of the First Council of the AnhuiIndustrial Culture Association
2024 China Household Electrical AppliancesConference
Summary of the Company's Participation in Drafting National, Industry, and Group Standards
During the reporting period, Changmei Living Appliances successfully participated in drafting the groupstandard Technical Specification for Instant Water Heaters. This once again highlights ChanghongMeiling's leading position in the water appliance sector and demonstrates the company's important rolein promoting industry technological innovation and standardization e?orts.
Through scientific research exploration and industrycollaboration, Changmei Living Appliances successfullyparticipated in drafting the group standardTechnical Speci?cationfor Performance Testing and Characterization Methods of RangeHoods.
CategoryLed DraftingParticipated in DraftingTotalNational Standards163551Industry Standards6915Group Standards71623Total296089
Case
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
In December 2024, Changhong Meiling, as a member of the drafting working group, participated in theNational Household Electrical Appliances Standardization Technical Committee Secretariat's meeting inHangzhou, Zhejiang Province. The meeting focused on drafting two national standards:
Speci?cations forUser Experience Design Evaluation of Household and Similar Electrical Appliances and Design Speci?cationsfor User Experience Laboratories of Household Electrical Appliances.
Changhong Meiling's "Blue Oxygen Hand-Washing" Series Drum WashingMachine combines the triple-force hand-washing-like technology withthe blue oxygen residue removal technology, reducing detergent usagewhile thoroughly cleaning and removing residues, thereby minimizingenvironmental pollution.
In October 2024, the company launched the world's ?rst air-cooled inverter kitchen refrigerator (Meiling Inverter Energy-Saving King). In the commercial kitchen refrigerator sector,Meiling pioneered inverter technology, achieving energysavings of over 45%, leading the industry by a significantmargin.
Micro-Electro-Mechanical Systems (MEMS)Technology: Launch Meeting for the Developmentof Two National Standards
Achievements in Technological Innovation
Based on its industrial technological expertise and professional advantages, Changhong Meiling hassystematically organized its technological achievements according to the company's actual needs andapplication directions. The company continuously promotes the industrialization of these achievements,providing productivity for its development, creating value for users, and injecting strong momentum intothe industry's progress.
Innovative R&D Achievements
By accurately capturing market trends and consumer preferences, the company hasfocused on product upgrades centered around "freshness, slimness, narrowness,and embedded design". In 2024, the company further strengthened its productcompetitiveness, solidifying its product identity with the "Meiling Fresh", "MeilingSlim", "Meiling Narrow", and "Meiling Embedded Design" series.The company has deeply understood user needs, rapidly enhanced its coretechnological capabilities, and optimized its product portfolio. Building on its hand-washing-like drum series, the company pioneered the "Blue Oxygen Residue RemovalTechnology" and launched the "Blue Oxygen Hand-Washing" series. For pulsatorwashing machines, the company expanded its "Hercules" series lineup, creatingdistinctive products with strong brand identity.
With a user-centric approach, the company focuses on addressing user painpoints. Following the product strategy of "AI + Wind Sensation, Airflow, andControl", it upgraded its exclusive 360° dust-free and dual-wing wall-mountedunits, as well as the Panda Lazy cabinet units, and introduced the "SuperEnergy-Saving" series of cabinet units. These e?orts embody Changhong AirConditioning's brand philosophy of "Precision Engineering, Comfort in EveryDegree".The company focuses on its core product lines, guided by market demand,and strengthens its R&D capabilities to optimize product structures. In thesmall appliance category, the company continued to excel in core segments,launching products such as the N10 Fresh Water Series Tea Maker and thesecond-generation Honeycomb Energy-E?cient Gas Water Heater.Adhering to the brand philosophy of "using products as the primary mediumto deliver core value to users", the company focuses on the life sciences sector.Based on user scenario needs, it continuously advances product innovationand quality upgrades, providing professional full-scenario solutions. This e?orthas shaped a safe and stable brand image, further enhancing the company'sin?uence.
Refrigerator (andFreezer) Products
Washing MachineProducts
Air ConditioningProducts
Major and Small Kitchen Appliances
Biomedical Equipment
Industrialization AchievementsBusiness Segment
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
In 2024, Changhong Air Conditioning conducted key research on refrigerant ?ow control, focusing on refrigerantflow matching control, expansion valve opening control, and air conditioning performance matching tests. Thisled to the development of a patent portfolio for energy-saving air conditioning technologies based on adaptiverefrigerant ?ow regulation. Without increasing product costs, the company signi?cantly improved product energye?ciency and applied these advancements to the "Super Energy-Saving" series products Q7V/EV. The results wereremarkable: the energy e?ciency ratio of the 72Q7V/EV model exceeded the national standard by 19.05%, while the51Q7V/EV model exceeded it by 17.33%, delivering an enhanced energy-saving experience for users.
In 2024, Changhong Air Conditioning independently developed and launched the Q7A air conditioner. As theindustry's ?rst fully dust-free fresh-air conditioner, it leverages 5A fresh air technology to once again lead industrydevelopment trends, ushering in the era of "dust-free fresh air" for fresh-air conditioners.
The company's consistent and stable output of R&D achievements has been widely recognized bygovernment departments, industry associations, and the market, earning numerous qualifications andhonors.
R&D Innovation Honors
Award-Winning Service/Technology
Name of HonorAward/Honor
Key Technologies andEquipment Innovation forQuality Control in Cold ChainLogistics of Pre-Made MeatDishes
2023 First Prizeof Science andTechnologyProgress Awardof China LightIndustry Council
Meiling BCD-507WQ6S, MeilingBCD-511WQ6F
2024 German RedDot Award
BCD-560WPBX Large FreezerAir-Cooled Refrigerator, BCD-507WPU9CDZX ConstantTemperature Micro-FreezingFresh Freezer
Provincial-LevelNew ProductAward
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Award-Winning Service/Technology
Name of HonorAward/HonorFrozen Fresh French Five-Door Refrigerator BCD-510WP9BDZ, Cloud-Based Automatic FaultDiagnosis Technology forRefrigerators, Drum WashingMachine LRS1AH100D, AIAdaptive Cloud FreshnessPreservation Technology
20th China HouseholdAppliances InnovationAward
Refrigerator (Open State)
2024 Anhui ProvincialExterior Design PatentSilver Award
Development andIndustrialization of AirConditioning SoftwareSystems Based on DigitalSimulation Technology
Ministry of Industryand InformationTechnology's2024"Digital ThreeProducts" ApplicationScenario Typical CaseList
Super Energy-Saving Series
Air Conditioners
Chinese Associationof Refrigeration's"2023 Energy-Savingand Eco-FriendlyProduct Award" and"Smart Energy-SavingPioneer" Honor atthe Air ConditioningIndustry DevelopmentConference
Award-Winning Service/
Technology
Name of HonorAward/HonorNumerical Simulation SoftwareDevelopment and Applicationfor Vibration and Noise inInverter Air ConditionerCompressor Pipelines
Excellence Award atthe First MianyangData ApplicationInnovationCompetition
Development andIndustrialization of AirConditioning Software SystemsBased on Digital SimulationTechnology
Third Prize at the2024 "Data Factorx" CompetitionSichuan DivisionFinals
Intellectual Property Protection
The company places great emphasis on intellectual property (IP) management. In accordance with relevantlaws and regulations such as thePatent Law of the People's Republic of China, theTrademark Law of thePeople's Republic of China, and theCopyright Law of the People's Republic of China, the company hascontinuously improved its internal systems, including theTrademark Management Regulations,DetailedRules for the Implementation of Trademark Management Regulations, Special Authorization Regulationsfor Trademarks, Patent and Technical Know-How Management Regulations, Patent and R&D CollaborationManagement Regulations, Intellectual Property Management Regulations, and Intellectual PropertyProtection Management Measures. These systems standardize the creation, utilization, protection, andmanagement of intellectual property, ensuring that IP work is deeply integrated into the entire product R&Dprocess.Additionally, the company has continuously re?ned its IP management and incentive mechanisms, activelybuilding a digital IP management system (IPS system). This system enables full lifecycle management ofintellectual property, unifying the application, agency, and response submission processes online, withcomplete process support and logging. This has further improved the efficiency of IP management andadvanced IP management toward standardization and scienti?c rigor.
Intellectual Property System Construction
During the reporting period, the company did not encounter any IP infringement litigation cases.
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Intellectual Property Protection Measures
Key perfomance in 2024Number of Valid Patents
As of December 31, 2024
Number of Invention PatentsApplied to Core Business
Number of SoftwareCopyrights
3,93398198PatentsPatentsCopyrights
Statistical Scope: Changhong Meiling, Hongmei Intelligent, Jiangxi Meiling, Mianyang Meiling, Ridian Technology, Changmei
Living Appliances, Changhong Air Conditioning, Zhongke Meiling, Zhongshan Changhong.
Governance of Scienti?c and Technological Ethics
Changhong Meiling adheres to theGuidelines on Strengthening the Governance of Scientific and TechnologicalEthics, continuously improving its scienti?c and technological ethics system, enhancing governance capabilities,and effectively preventing and controlling ethical risks. For AI applications in refrigerator big data research, thecompany actively conducts safety education and training, continuously strengthening its understanding of AI ethics.During the reporting period, the company did not encounter any violations of scienti?c and technological ethics.
In the development of AI-enabled air conditioning products, the company consistently upholds a high senseof responsibility and strictly follows scientific and technological ethics principles. To provide high-qualityservices while protecting user privacy, the company only collects and analyzes data related to the operationof air conditioning products, ensuring that the application of AI technology fully complies with relevant laws,regulations, and social ethical standards.Employees
Talent is the cornerstone of corporate development. The company places high importance on employees' rights andwell-being, establishing a robust employee management system, valuing employee contributions, standardizingemployment practices, and promoting value co-creation and benefit-sharing between the company and itsemployees.Changhong Meiling has built a comprehensive training management system, implementing systematic trainingplans, process safeguards, and resource allocation to meet employees' career development needs and thecompany's strategic goals. The company focuses on core talent and adheres to a compensation philosophy of"re?ecting position value and performance orientation", establishing a compensation management system alignedwith the company's strategic and operational objectives.
Four-Element Framework for Employee-Related IssuesGovernance Related to Employees
Strategy Related to Employees
Before initiating business activities, the companyconducts IP infringement risk analysis, identificationand risk warnings for patents, trademarks, andpromotional language, ensuring that IP risks arecontrollable and managed effectively throughout thebusiness process.During product development, R&D personnel (RD) andIP managers (IP) collaborate to conduct patent miningand layout based on market demand, establishinga technical intelligence risk database and markingpatent technology guidelines.The company has established a linkage mechanismwith internal departments and external organizationsfor trademark registration, patent applications,infringement risk analysis, infringement risk avoidance,and IP rights protection.During the reporting period, Changhong Meiling,in collaboration with external anti-counterfeitingagencies, obtained over 400,000 RMB in compensationfrom cases involving trademark infringement and theproduction and sale of counterfeit products.
The company protects technological achievementsgenerated during R&D through proactive patentapplications. Product designs or patent applicationsare carefully crafted to avoid existing patentedtechnologies, preventing patent disputes andinfringement.
To enhance employees' ability to manage IP risks,the company participates in IP protection lecturesorganized by provincial, municipal, and industryassociations and conducts internal IP-relatedtraining sessions.During the reporting period, the company organized
Risk Prevention and Infringement ResponseIP Application and Registration
IP Awareness Training
3 IP training sessions,with a total of 100participants.
IPS System
Intellectual Property Management
System Certi?cation
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Risk FactorRisk/Opportunity Description
ImpactLevel
ImpactDuration
Mitigation Measures
Other Risks
In labor-intensive productionmodels, employeedissatisfaction with salariesand working conditions maylead to labor con?icts
MediumShort Term
Establish a performance-oriented?exible compensation mechanismCreate a regular communicationplatform, hold periodic meetings,and respond promptly to employeeconcerns through a complaint mailboxReduce labor intensity anddependency through smartmanufacturing equipment, such asautomated production linesIntensi?ed industrycompetition may lead tothe loss of core technicalpersonnel
High
MediumTerm
Improve promotion and incentivemechanisms. For core employees,implement equity incentives oremployee stock ownership plansto deepen their commitment to thecompany
OtherOpportunities
The carbon neutralitypolicy drives enterprisestoward green manufacturingtransformation, creatingdemand for professionalsskilled in low-carbontechnologies and providingemployees with careeradvancement opportunities
Medium
Medium toLong Term
Develop employees through internaltraining systems to reduce the costof external recruitment
Management of Impacts, Risks, and Opportunities Related to EmployeesThe company has formulated talent development management systems, including theMeiling Talent Team BuildingPlan, Job Grade Management Measures, Company Technical Expert Management Measures, and Meiling VocationalSkill Level Certification Implementation Measures.It has established vertical development channels across six
Risk and Opportunity Identi?cation and Mitigation Measures
Indicators and Goals Related to EmployeesBased on laws and regulations, national standards,the Guidelinesrequirements, and the company's actualconditions, we have set relevant goals for employee-related issues and continuously track their progress.During the reporting period, we achieved the following employee-related objectives:
Changhong Meiling strictly complies with laws and regulations, establishing internal employment managementsystems such as theRecruitment Management Regulations, Social Responsibility Personnel ManagementRegulations, and Meiling Employment Information Disclosure Standards. These systems ensure a compliant andlawful recruitment and employment process, ful?lling the company's responsibilities as a corporate citizen.Following the recruitment principles that put people ?rst, prioritize fairness, equity, and matching the right personto the right job, the company conducts recruitment activities in accordance with internal processes such as theRecruitment Management Regulations. It employs various recruitment methods, including social recruitment,campus recruitment, and headhunting, to attract top talent. The company emphasizes openness, fairness, andtransparency in its recruitment process, establishing a fair, democratic, competitive, and merit-based talentselection mechanism to build a high-quality workforce.
Employee Employment
Compliant Employment
management
R&D
technology
function
marketing
productionthe Meiling Talent Team Building Plan,Job Grade Management Measures,Company Technical Expert ManagementMeasures, and Meiling Vocational Skill LevelCerti?cation Implementation Measures
TargetTime FrameProgress During Reporting PeriodEmployeeRecruitment
Female manager ratio exceeding 10%Short TermCompletedEmployeeTurnover
Employee turnover rate below 5%Short TermCompleted (actual turnover rate: 2.98%)
put people
?rst
prioritizefairness,equity
matchingthe rightperson tothe right job
categories: management, R&D, technology,function, marketing, and production.Additionally, the company has createdhorizontal career development pathways,implementing a dual-channel managementmodel for professional and managerial roles.Each channel has multiple promotion levels,guiding employees' career development andbreaking the "glass ceiling" for talent growth.
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The company strictly prohibits the use of child labor and forced labor, safeguarding employees' basic rights inrecruitment, treatment, and promotion. In 2024, the company did not encounter any incidents involving child labor,forced labor, harassment, bullying, or intimidation.
Changhong Meiling's Recruitment Process
The Human Resources Department receives recruitment requestsand formulates a hiring planRecruitment information is released through multiple channels,both internal and externalEnsure fairness and transparency in the recruitment processthrough interviews, written tests, background checks, publicannouncements, and medical examinationsEmployee selection information, process details, and resultsare disclosed without omission through designated channels toensure transparency in recruitment outcomesAfter the public announcement, onboarding procedures arecompleted. All recruitment-related documents and records areassigned to dedicated personnel for safekeeping and regulararchiving to ensure e?ective record management
Develop Recruitment PlanPublish Recruitment Information
When recruiting, the hiring entity must rigorouslycheck the identi?cation documents of applicantsand confirm their accuracy before registeringthem for employment.If a minor under the age of 16 is discovered, anycompany personnel must immediately report tothe relevant departments and take appropriateremedial measures.For underage workers aged 16 or above butunder 18, the company continuously monitorstheir health conditions to ensure their physicaland mental well-being.
All employees hired by the company must beemployed on a voluntary basis. Any form offorced labor is strictly prohibited, and deceptivepractices to lure employees to work in the factoryare not allowed. The company prohibits theemployment of prison labor.If the company uses violence, threats, or illegalmeans to restrict personal freedom to forceworkers to labor, employees may report tolocal public security authorities. If acts suchas humiliation, corporal punishment, illegalsearches, or detention constitute a crime,the company will investigate and hold theresponsible parties accountable.
Prohibition of Child Labor andManagement of Underage Workers
Prohibition of Forced Labor
Employee Employment and Composition
Total Number of Employees
Number of Production Sta?
Number of Financial Sta?
Number of Sales Sta?
Number of Administrative Sta?
Number of Technical Sta?
Number of Employees withHigh School Education or Below
Number of Employees withMaster's Degrees or HigherNumber of Employeeswith College Education
Number of FemaleEmployees
Number of Employeeswith Bachelor's Degrees
Proportion of Employeeswith Disabilities
Number of Female SeniorManagers
Social InsuranceCoverage Rate
Proportion of FemaleExecutives Among Total Executives
14,655
7,410
4,458
1,911
9,096
2,282
6,835
3,054
0.5
23.53
Person
Person
人
Person
Person
Person
Person
PersonPerson
Person
Person
%
Person
%
%
Candidate Screening
and InterviewsPublic Announcement of
Hiring Information
Approval and Onboarding
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Changhong Meiling consistently adheres to a diverse, equal, and fair employment policy, prohibiting all formsof discrimination based on nationality, gender, age, ethnicity, disability, or other factors. We respect employeesfrom diverse cultural backgrounds and religious beliefs, striving to create an inclusive and diverse workplaceatmosphere.
In active response to national policies and calls to strengthen flexible employment and protect the rights ofworkers in new employment forms, Changhong Meiling has established comprehensive employment managementstandards for ?exible positions. These standards ensure that employees' rights in terms of compensation, bene?ts,and career development are fully protected. The company has also set up e?ective communication channels andfeedback mechanisms, allowing employees to report issues promptly. The company will then implement targetedimprovements and remedial measures.
Changhong Meiling strictly complies with relevant laws and regulations, such as theLabor Contract Law ofthe People's Republic of China and the Labor Law of the People's Republic of China. By formulating internalpersonnel management systems, including theHuman Resource Management ProceduresandLabor ContractImplementation Management Measures, and establishing an employee complaint platform, the company fullysafeguards employees' rights and provides channels for employee grievances. Additionally, the company hasdesignated specialized positions for labor relations, responsible for effectively preventing and mediating labordisputes, resolving them at the earliest stage.
Changhong Air Conditioning and its subsidiaries, based on their production and operationalcharacteristics, use labor dispatch and part-time employment to address peak-season laborshortages. A total of approximately
2,018
?exible workers were recruited.
Diverse Workplace
Creating Flexible Positions
Labor Dispute ResolutionThe company does not allow managers toengage in any coercive, threatening, humiliating,or exploitative behavior toward employees,including gestures, language, or physical contact.Employees may file complaints aboutdiscrimination in writing or verbally. Thecompany's management will assign investigatorsto address the complaints and provide a verbalor written response to the complainant within 15days.During recruitment, the company shall not inquireabout female applicants' pregnancy status orrequire female applicants to take pregnancy testsor set it as a precondition for employment.
The company strictly prohibits physicalpunishment and verbal abuse of employees, aswell as sexual harassment and wage deductionsas punishment. Violators will be warned ordismissed depending on the severity of theo?ense.The company prohibits employees from makingsexually suggestive, humiliating, or otherwiseinappropriate comments or actions toward othersin the workplace.
Prohibition of Discrimination
and Exploitation
Prohibition of Discrimination
and Exploitation
Direct Negotiation Between the Parties Concerned:
In the event of a labor dispute, the involved parties should ?rst attempt to resolve the issuethrough equal and fair negotiation. If no agreement is reached, the parties may apply formediation through a labor dispute mediation organization.Third-Party Mediation:
The company's labor union serves as the labor dispute mediation organization, responsiblefor receiving and mediating internal labor disputes. Mediation must be conducted by athird party with no vested interest in the dispute. Individuals who may compromise thefairness of the mediation process are not permitted to participate.Mediation Outcome:
If a mediation agreement is reached, both parties are expected to voluntarily fulfill theterms. If no agreement is reached, either or both parties may ?le for labor arbitration withthe competent labor dispute arbitration committee.
Labor Dispute Resolution Mechanism
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Changhong Meiling strictly complies with relevant national laws, regulations, and policy requirements. Thecompany has established internal compensation systems, including theCompensation Management Measures,Performance Evaluation Management Measures, andEmployee Benefits Management Measures, to regulatecompensation management, distribution, and payment. These measures enhance the internal fairness and externalcompetitiveness of the company's compensation structure. The company has developed a compensation structuretailored to various positions, primarily consisting of base salary, special rewards, and performance incentives.In addition, the company provides corresponding benefits and allowances in accordance with national lawsand regulations. Furthermore, the company dynamically adjusts compensation through job value evaluations,performance-based salary adjustments, and technical points systems, ensuring that employees' compensationlevels meet market standards and their personal needs.
Base Salary + Variable Pay (Performance Bonuses, R&D Project Awards, PatentAwards, Sales Commissions, etc.)
Five Social Insurances and Housing Fund, Regular Health Checkups, EmployeeCare (Gym, Holiday Bene?ts, Team Building, etc.), Allowances (CommunicationAllowance, High-Temperature Subsidy, Meal Allowance, etc.)
The company has clearly defined the performance appeal process, ensuring the fairness and accuracy ofperformance evaluations through three aspects: performance result disclosure, performance feedback, andperformance audits.
Employee Compensation and Bene?tsCompensation and Bene?ts
Compensation
Structure
Bene?tsStructurePerformance Appeals
Each department must disclose its evaluation criteria and results. Employees who disagree withtheir performance evaluations may submit written feedback to the Human Resources Departmentwithin the speci?ed time frame.The company has established multi-level feedback channels. Appeals must be processed andresponded to within the stipulated time, and temporary review meetings may be convened ifnecessary for adjudication.The Human Resources Department, in accordance with the compensation and performancesystem and rules, may audit performance evaluations, incentive distributions, and compensationoutcomes. An accountability mechanism has also been established.
Performance Result Disclosure
The company actively conducts employee satisfaction surveys through questionnaires, forums, and other methodsto gain in-depth insights into employees' genuine thoughts and demands. Based on the survey results, the companyanalyzes and discusses the ?ndings, promptly addressing existing issues to comprehensively improve employeesatisfaction. Management strategies are adjusted and optimized to achieve mutual growth for both the companyand its employees.
Employee Satisfaction
In 2024, Changhong Meiling, in accordance with theEmployee Satisfaction and Engagement ManagementImplementation Measures, conducted a questionnairesurvey through a third-party agency to understandemployees' true thoughts and demands.
Changhong Meiling places high importance on employees' democratic rights. The company has establisheddemocratic management systems, including theWorkers' Congress Work Regulationsand theNotice on Regulatingthe Listening and Resolution of Grassroots Employee Opinions by Managers at All Levels. These systems ensure
During the reporting period, ChanghongMeiling and its subsidiaries held workers'congresses, during which agreements weresigned on collective wage negotiations,collective contracts, special collectivecontracts for the protection of femaleemployees' rights, and special collectivecontracts for labor safety and health.
Democratic Communication
Workers' Congress
The overall satisfaction score was 72.4,and the overall engagement score was
72.6
, both representing a 2% year-on-year increase.
Employee
AppealChannels
Employee Suggestion Box
Supervisors up to the CompanyChairman
Internal OA System
Relevant FunctionalDepartments Union Representatives
Compensation and Bene?ts Structure
Performance Feedback
Performance Audits
smooth channels for democratic participation, collect employeeopinions and demands through multiple avenues, implementrational suggestions, and build a diversi?ed feedback mechanism.The company fosters an equal dialogue space, ensuring thatgrassroots demands are fully valued and transformed into keydrivers for optimizing organizational e?ciency. Every employee'svoice is heard, and rational suggestions are actively implemented.The company has established democratic managementmechanisms such as labor unions and workers' congresses,standardizing the procedures for convening workers' congresses toensure procedural justice in employees' democratic managementrights and corporate governance structures.
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
for Employees in Need
"Employee Children Summer Camp" Activities
Spring Festival Care Campaign
Employee Support
Family Care and Educational Support
Changhong Meiling is deeply committed to the well-being of its employees, striving to create a warm and caringcorporate environment. The company organizes various activities to alleviate work-related stress, o?ering diversesupport and care initiatives to enhance the quality of life for its employees, thereby boosting their sense ofhappiness and belonging.
The company's labor union continuouslymonitors the family situations of employeesfacing difficulties. During the reportingperiod, the company distributed a total of320,000 RMB in ?nancial aid, bene?ting 488employees in need, helping them overcomechallenges with the company's support.
In 2024, Changhong Meiling received a total of 248 rationalization suggestions, implemented 248improvement measures, and achieved economic bene?ts of 19.098 million yuan.
Employee Care and Support
To support employees in their children's education, ZhongshanChanghong has implemented an educational assistanceprogram, helping employees resolve issues related to theirchildren's school enrollment. Additionally, the company hasorganized diverse activities such as swimming classes, familyoutings, and factory tours under the "Employee ChildrenSummer Camp" program. Furthermore, the company providesfinancial aid to employees whose children are enteringuniversity, demonstrating its support and encouragement foremployee family education.
Psychology Enthusiast Team Learning
Employee Physical and Mental Health
Psychological Counseling Courses to PrioritizeEmployee Mental Health
Changhong Meiling has launched a series of courses titled"Mental Health—Mindfulness and Stress Relief" to guideemployees in focusing on their physical and mental well-being. These courses teach employees how to managestress effectively, utilize internal resources more efficiently,and enhance their confidence and happiness. Over 300employees participated in these courses, both online ando?ine.Changhong Air Conditioning has developed an annualmental health plan, inviting psychology experts to conductprofessional courses. The company has organized a seriesof lectures on "Production Line Safety Psychology" andarranged monthly one-on-one professional psychologicalcounseling sessions for employees. Throughout the year, 84employees participated, accumulating over 4,000 minutes oftherapeutic time.
Collaborating with Medical Institutions to Care forEmployee HealthChanghong Meiling has invited a team of traditional Chinesemedicine (TCM) practitioners to provide on-site consultations,allowing employees to access professional and detailedmedical services during their work breaks. Employees can gaina deeper understanding of their health conditions and receivepersonalized TCM treatment advice and wellness guidance.
Changhong Air Conditioning has partneredwith medical institutions to provide on-site medical services within the company'spremises. These services include consultations,acupuncture, massage, emergency care, andhealth training, ensuring the well-being ofnearly 6,000 employees in the industrial park.On-site Medical Services
Case
CaseCase
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Special Group Care Campaign
Care for Special Groups
The company actively cares for and supports special groups such as employees facing difficulties and femaleemployees, showing concern for their work and personal lives, and making them feel the warmth and care from thecompany.
The company organizes irregular visits to special groups,understanding the needs of disabled employees in theirwork and daily lives, and assisting them in resolving issues.
To meet the nutritional and privacy needs of nursingmothers, Zhongke Meiling's cafeteria offers special mealsfor pregnant and nursing employees. Additionally, thecompany has established nursing rooms to provide privateand comfortable spaces for nursing mothers.During the reporting period, Zhongke Meiling was honoredwith the "Women Workers' Home Nursing Room" award bythe Anhui Provincial Trade Union.
Department Team-building Activity
Football Match
Employee Interest Class
Spring Festival "Paper-cutting" Activity
Balancing Work and Life
The company actively organizes a variety of cultural and sports activities to enrich employees' leisure time andfoster better communication among them.
To help employees' families gain a deeper understanding of the Company, its culture, and theirloved ones' work environment and responsibilities, we launched the Meiling OpenDay initiative.This program invites family members to participate in corporate tours, professional presentations,knowledge quizzes, craft workshops, and other interactive activities, fostering a warm bridgebetween families and the enterprise.
Dance Competition
OPEN DAY Meiling OPEN DAYFun Sports Day
Multi-skill Knowledge CompetitionChanghong Meiling's 2nd GratitudeFestival Featuring Fresh Food Market
Various Club Activities
Deepening Employee-Family Connections
Case
Case
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Employee Training and Development
Employee Training and Continuing Education
The company has established a three-tier training management system at the corporate, business unit, anddepartmental levels. Starting from identifying training needs, the company conducts detailed assessmentsto develop targeted training plans and courses. These plans are effectively implemented, supported bystandardized processes and optimized resource allocation, ensuring the effectiveness of the trainingprograms.
Based on job learning roadmaps, the company systematically organizes annual course developmentfor various job sequences through experience extraction and external knowledge integration. This hasgradually formed a comprehensive Meiling professional course system. In 2024, the company launcheda micro-course development plan, organizing departments to review courses across 16 job sequences,resulting in the development of 302 micro-courses.
Throughout the year, various departments conducted a total of 3,307 online and o?ine training sessions at bothdepartmental and corporate levels. The training coverage reached 100% of employees, and the average traininghours per employee have steadily increased for three consecutive years.Training Management System
Changhong Meiling's Training Management System
Employee Training Data
Total Investment inEmployee Training
Average Training Hoursper EmployeeEmployee trainingcoverage reached3142410010,000 RMBHours%
Targeted Training Content and Diverse Training MethodsTraining Needs
Training PlanE?ectivenessEvaluation
ProgramImplementation
Employee Knowledge/Skill Requirements Strategic Goal Alignment
Career Development Needs
TrainingOperations
Training Policy
Learning MechanismsTrainer Management
System
Process &Policies
Internal Part-Time TrainersExternal Training Consultants
Training BudgetFacilities & Resources
Meiling Academy CurriculumKnowledge Asset Repository
Employee CategoryTraining MethodsMain Training ContentNew Employees -
Operators
Face-to-face, Hands-on Training
Corporate Culture, Safety, Quality, OperationalProcesses, etc.New Employees -College Graduates
Online Meiling ManagementAcademy, Face-to-face, Job Rotation
Corporate Culture, Strategy, System Processes,Safety, Products, Job-speci?c Knowledge,Management Systems, etc.Professional Sta?
Online Meiling Academy andKnowledge Resource Library, Face-to-face, Internal Training andSharing
Cultural Behavior Standards, ProfessionalKnowledge, Process and System Training, InternalExperience Sharing, etc.Team Leaders and LineSupervisors
Online Meiling ManufacturingAcademy, Internal Training andSharing
Cultural Behavior Standards, Safety, TeamManagement, Lean Management, ProductManagement, Smart Manufacturing, New-generation Employee Management, etc.Core Key Personnel
Online Meiling Academy,Professional Lectures, ExternalDevelopment, Industry Forums
Cultural Behavior Standards, ProfessionalKnowledge, Industry Trends, Cross-systemProfessional Courses, Skill Gap Training, etc.Reserve Talent Pool
External Training, Online MeilingAcademy, Professional Lectures,Elite Lecture Hall, Job Rotation, etc.
Innovative Thinking, Professional SkillEnhancement, Management Courses, IndustryDevelopment, etc.Middle Management
External Training, visits, OnlineChaos University, CEIBS, StudyTours, Executive Lecture Hall, etc.
Innovative Thinking, Management Courses, DDILeadership, Crucial Conversations, IndustryDevelopment, etc.Senior Management
Integrated Innovation, Corporate Practice,Audiobooks, Senior Executive Forums, etc.
ResourceAllocation
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Elite Lecture Hall, Internal Experience Sharing
To fully leverage the knowledge and experience of the company's core talent, Changhong Meiling launchedthe "Elite Lecture Hall" training program. This initiative taps into the professional expertise of mid-to-senior managers and experts, enabling the rapid dissemination of elite knowledge and experience to otheremployees, thereby creating high-level professional training sessions.
Professional Team Training, Enhancing Professional Skills
Supervisor-level Training, Enhancing Management Skills
The company organized aninternal trainingsession titled Internal Training on Applicationand Troubleshooting of Yaskawa Robots, in whichequipment operators participated to enhance theirprofessional skills, building a reserve of talent forthe professional team.
To improve the leadership and management e?ciencyof young managers, the company organized aspecialized training session titled "Dancing with theNew Generation—Positive Communication Based onEmployee Differences and Contexts" for supervisorsand reserve management personnel.
Reserve Management Training, Broadening HorizonsTo further deepen the understandingof lean management principles andimprove management efficiency,the company organized reservemanagement personnel to visit andtrain at NIO's advanced manufacturingbase. This allowed them to observelean management practices firsthandand broaden their managementperspectives.
CaseCase
CaseCase
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Management Training, Enhancing Leadership Skills
To help managers better understand the impact of generational di?erences on the company and industry,the company conducted a "Generational Leadership" training program for management personnel. Thistraining provided a systematic methodology and practical tools to empower managers to more e?ectivelyunlock the potential and vitality of the new generation.
New Generation Training, Accelerating Workplace Transformation
Team Leader Training, Enhancing Team Management Skills
In July 2024, the company organizedcampus recruits to participate in the"Spark Training Camp" conductedby the Changhong Group. Thisinitiative helped new graduatesquickly understand the company,integrate into the corporate culture,enhance their sense of belonging, andtransition from a student mindset to aprofessional one.
To further strengthen teammanagement skills and enhanceteam cohesion, the companyofficially launched a core teamleader training program in June2024. This program effectivelyimproved the leadership capabilitiesof team leaders, providing solidgrassroots management supportfor the company's sustainabledevelopment.
Professional Training, Multi-channel Development
To further help employees explore self-driven multi-channel career development, the company organizeda specialized training session titled "Anchoring the Future, Self-driven Multi-channel Development" forcore professional employees across various departments.
Case
CaseCase
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
To ensure the effectiveness of training, the company continuously improves the quality and efficacy oftraining through multi-level training evaluations, credit-based incentives, and the optimization of trainingteams and platforms.
The company consistently evaluates the effectiveness of various key trainingprograms. Based on employee feedback and evaluation results, the companyadjusts training content and methods in a timely manner. The evaluation results arealso shared with relevant business departments as a basis for future training plansand needs.
Ensuring Training E?ectiveness
Four-Level Training
Evaluation Model
The company has established a credit-based training system, e?ectively integrating itwith employees' actual work and performance. Training credits serve as a method tomotivate and drive employee learning, linking internal evaluations and future careerdevelopment, thereby enhancing employees' initiative and enthusiasm for learning.
Training managers are both planners and implementers of training programs. Thecompany provides specialized training for training managers according to plan,improving their management, operational, and resource-building capabilities, therebyenhancing the overall quality and e?ectiveness of the company's training e?orts.The company continuously optimizes the Meiling Academy management system byevaluating, revising, and integrating existing course materials, standardizing the coursereview process, continuously developing and validating question banks, optimizing theonline credit application system, and increasing the development of micro-courses.These efforts promote online learning and knowledge sharing among employees,creating a knowledge platform with Meiling's unique characteristics.Training IncentiveMechanism
Enhancing theCapabilities ofTraining Managers
Optimizationof the MeilingAcademy Platform
Credit Calculation Mechanism
Training Incentive Mechanism
Development-basedPromotionTalent PoolAdmission
Select candidates for talentpool through comprehensiveevaluation (performance,learning achievements,potential) and providespecialized development
Assign developmentalchallenging positions tohigh-potential employees
Incentivize traineeswho achieve rankingsin internal/externalcompetitionsEvaluate and recognize"Outstanding Trainees" basedon in-class performance andassessment results
Trainers are the core of the training system. The company has built a high-level internal trainerteam, expanding the pool of internal trainers to include mid-to-senior managers and top-performingemployees. The company has improved the internal trainer management system and enhanced theteaching capabilities of internal trainers. Regular internal trainer team-building projects are conducted,systematically improving the quality and effectiveness of internal trainers' courses through TTT (Trainthe Trainer) camps and certi?cation programs. Currently, the company has a team of approximately 160certi?ed part-time internal trainers.
Building a Strong Trainer Team
Level ofTrainingEvaluation
MethodRequirementsLevel 1
On-site TrainingEvaluation—Feedback
Trainees evaluate the "satisfaction" with trainers, trainingcourses, and training organization management
Level 2
Learning OutcomeEvaluation—Results
Assess trainees' learning outcomes after training throughexams or practical operationsLevel 3
Behavioral ChangeEvaluation—Behavior
Evaluate whether trainees' behavior or work performancehas improved as expected within 3–6 months after training
Level 4
Economic ImpactEvaluation—E?ectiveness
Conduct a comprehensive evaluation based on annualperformance results and departmental performanceoutcomes
Awards &RecognitionOutstanding
TraineeSelection
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
To continuously improve employees' educationalqualifications, the company encourages employeesto pursue on-the-job education. Each year, over40 employees obtain bachelor's degrees or higher.The company provides rewards to employees uponobtaining their degree certificates, continuouslyencouraging them to enhance their educationalquali?cations.
Employee Continuing Education
Employee Promotion and DevelopmentEmployee Career Development Pathways
Employees in management and professional roles can choose either managementor professional development pathways based on their personal career plans,enabling vertical career progression. For management roles, the companyconducts dynamic adjustments to the management team through competitivejob-presentation and PK among incumbent managers and candidates, combinedwith democratic evaluations, capability assessments, performance scores, andperformance grades. For professional roles, employees are evaluated annuallybased on performance, technical expertise, and expert assessments, combinedwith annual performance results and technical credit rankings, to organizeemployee promotions and ensure orderly vertical career growth.
Horizontal development includes cross-sequence horizontal developmentpathways and dual-directional development pathways between managementand professional roles. For cross-sequence horizontal development, the companyencourages employees from various professional sequences to participate in cross-sequence job competitions based on their career plans, expertise, and capabilities.Additionally, the company has established dual-directional development pathwaysbetween management and professional roles, allowing professional employeesto compete for management roles and management employees to participate inprofessional role evaluations.
VerticalDevelopmentPathways
HorizontalDevelopmentPathways
Changhong Meiling provides employees with various career development opportunities at the corporatelevel, including professional and management pathways, dual career channels, quali?cation assessments,reserve talent pools, and learning roadmaps. The company conducts comprehensive analysis andbalancing based on employees' interests, hobbies, abilities, and characteristics, helping them determinetheir optimal career goals according to their career inclinations.
The company conducts annual performance evaluations for employees in the talent pool. Based on workachievements, learning progress, innovation proposals, and evaluation rankings, combined with feedbackfrom evaluators, the company determines promotions, retention, or removal from the talent pool. Eachyear, approximately 15 employees are promoted from the talent pool, making it a primary channel for theselection and cultivation of company leaders.
Career Development Planning and Evaluation
Employee Promotion
Dual Career Development Pathways
Promotions are based on annual reserve talent readiness, evaluationresults, and performanceRank promotions are based on annual performance evaluations andcapability growthTalent Pool PromotionAnnual Rank Promotion
Talent Promotion Mechanism
Executive/
DirectorChief
Manager/Expert
★★★★★★★★★
★★★★★★
★★★★★★
DepartmentHeadSeniorManagerSupervisor
SeniorEconomist
SpecialistAssistant
Lateral Development Path
Professional Track
Cross-TrackDevelopmentManagement Track
Vertical Promotion PathVertical Promotion Path
Senior/Authoritative
Expert
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Occupational Health and SafetyOccupational Health
Changhong Meiling strictly adheres to the requirements of laws and regulations such as theOccupationalDisease Prevention and Control Law of the People's Republic of China. The company has establishedoccupational health management systems, including theOccupational Health and Labor ProtectionSupervision Regulations, Occupational Health and Safety Operation Control Procedures, OccupationalHealth and Labor Protective Equipment Management Regulations, and Occupational Hazard Warning andNoti?cation System. These systems standardize occupational health processes, continuously improvingthe company's occupational health management level and providing solid protection for employees'health. By the end of the reporting period, the company and its six subsidiaries had obtained occupationalhealth and safety management system certi?cations.
To comprehensively safeguard employees' health and safety,Changhong Meiling has developed an occupational disease preventionand control plan, clearly defining the specific responsibilities andmeasures for the company and its subsidiaries in occupational diseaseprevention and control. All units are required to strictly implement theplan to ensure the orderly execution of occupational disease preventionand control work. During the reporting period, the implementation rateof the occupational disease prevention and control plan reached 100%.
Occupational Health Management System
Occupational Hazard Prevention and Control
The company has established theOccupational Hazard Warning andNoti?cation Systemto warn employees of potential occupational hazards in theworkplace, raising their awareness of occupational risks.
The company proactively monitors occupational hazards, identifying potentialrisks in a timely manner to ensure a safe working environment.
The company organizes pre-employment, on-the-job, post-employment, andemergency occupational health examinations, as well as regular employeehealth checkups, to ensure employees' physical health and safety.
The company defines training content at the corporate, workshop, and teamlevels, ensuring comprehensive training for employees in basic occupationalhealth knowledge, occupational health management, and job-specificoperations.
The company conducts occupational health awareness campaigns, suchas Occupational Disease Prevention and Control Law Awareness Week, tocontinuously improve employees' awareness of occupational health risks.
Based on job requirements, the company provides labor protective equipmentsagainst various hazards such as noise-proof rooms for noisy equipment, coolingfacilities for high-temperature workstations, and personal protective equipmentlike earplugs, protective clothing, and gloves. These facilities are regularlymaintained to ensure proper functionality.
OccupationalHazard Noti?cation
OccupationalHazard Monitoring
Occupational Health
Examinations
Occupational Health
Training
OccupationalHealth AwarenessCampaigns
Labor ProtectionFacilities
On-site Occupational Hazard Monitoring
In July 2024, Changhong Air Conditioning
conducted on-site occupational hazard monitoring
across the factory premises, testing 561 points. No
points exceeded safety standards, and the results
were publicly displayed on-site.
On-site Occupational Hazard Monitoring
On-site Display of Occupational Hazard Monitoring Results
Occupational
HazardNoti?cation
OccupationalHazard Reporting
OccupationalHazard MonitoringOccupationalHazardClassi?cation
OccupationalHazard ControlMeasures
OccupationalHealth Educationand Training
During the reporting period,the implementation rate of theoccupational disease preventionand control plan reached
%
Occupational Hazard Prevention and Control Measures
Occupational Health Management Process
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Occupational Health ExaminationsTo ensure employees' health and preventoccupational diseases in advance, ChanghongAir Conditioning organized occupational healthexaminations for its employees. The results showedno cases of occupational diseases or suspectedoccupational diseases. The company informedemployees of their examination results andcoordinated job transfers for those with occupationalcontraindications.
Occupational Health Awareness CampaignsTo continuously improve employees' awareness of occupational health, the company organized a seriesof awareness campaigns under the theme "Prioritize Prevention, Protect Occupational Health". During thereporting period, the company conducted 56 themed lectures, 26 warning education sessions, distributed223 copies of promotional materials, mobilized 38 campaign personnel, and reached an audience of 5,010employees.
Work Safety
Changhong Meiling consistently adheres to the safety management philosophy of "Safety First, Preventionas Priority, Comprehensive Management" and the core belief that "Safety is the Mountain, Safety is Life".In strict compliance with laws and regulations such as theWork Safety Law of the People's Republic ofChina, the company has formulated and revised 14 internal regulations, including theSafety TrainingManagement System, Hazard Identi?cation and Safety Risk Classi?cation Control System, Related PartySafety Management System, Hazardous Work Management System, and Hazardous Chemical SafetyManagement Regulations. These measures strengthen the corporate responsibility system for work safety,improve the dual-control prevention mechanism for risk classification and hazard investigation andmanagement, and actively promote the development of a "Meiling-style" safety culture. The companycontinues to advance the construction of "Work Safety Standardization", aiming to create an intrinsicallysafe and scienti?cally developed enterprise.The company has established a Safety (Occupational Health) Committee to define key safety priorities,implement safety responsibilities, and build a safe and healthy working environment. The concept of worksafety is integrated into every aspect of the company's and its subsidiaries' operations to implement safetyproduction work. By the end of 2024, Changhong Meiling and its seven subsidiaries had obtained worksafety standardization certi?cation.
Work Safety Management System
Safety
First
Preventionas Priority
ComprehensiveManagement
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Indicator2024Investment in Employee Work Injury InsuranceEmployee Work Injury Insurance Coverage Rate39010010,000 RMB%
During the reporting period, Changhong Meiling set work safety goals, clearly de?ning the categories ofsafety incidents. Subsidiaries followed Changhong Meiling's lead in establishing their own work safetygoals to ensure the precision and e?ectiveness of safety management across the company. In 2024, all ofChanghong Meiling's work safety goals were successfully achieved.
In accordance with theWork Safety Inspection and Accident Hazard Investigation and ManagementRegulationsand combined with the identi?cation criteria of signi?cant hazards, the company implementsa dual-control prevention mechanism for safety risk classification and hazard investigation andmanagement. This includes mechanisms for in-depth hazard identi?cation, closed-loop recti?cation, andhazard information tracking. The company conducts regular and systematic hazard investigations andrectifications, focusing on hazard identification and rectification. A hierarchical tracking managementmechanism is established to monitor and rectify major safety hazards (Class A/B), ensuring that worksafety remains under control.For work safety inspections and hazard investigations, the company adopts a hierarchical control principle,conducting inspections, investigations, and recti?cations at various levels, including operators, grassrootsteams, functional departments, production units, and the company as a whole, in accordance with thefrequency specified in theWork Safety Inspection and Accident Hazard Investigation and ManagementRegulations.
Work Safety Goals
Work Safety Measures
2024 Target2024 AchievementClass II and above work safety liability incidents00Class III work safety liability incidents control target≤2 incidents0Work safety liability incidents causing directeconomic losses of 300,000 RMB or more
Occupational diseases (including acute
occupational poisoning
Work Safety Inspections and Hazard Investigations during the Reporting Period
Hazard Investigations
Safety inspection reportsissued throughout the year
Class A hazards were registeredat the corporate level
Class C and Class D hazards, whichpose lower safety risks, are managed byindividual units.
Class B hazardswere registered
A total of
issueswere identi?ed
including
relatedto hazardous chemicals
resolvedunder recti?cation
Total government inspectionsthroughout the year
fully recti?ed
all of which were resolved
issues identi?ed
timestimesissues
Pre-Holiday Safety Inspection CampaignBefore the holidays, to eliminate safety hazards and ensure a smooth post-holiday resumption of work, thecompany's president and the head of the Safety Committee led a comprehensive safety inspection. Keyhazards, such as hazardous chemicals and con?ned spaces, were thoroughly inspected.
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Safety and Fire Safety Review
In October 2024, to enhance the company's work safety management capabilities, identify potential risks,and promptly address safety hazards, Changhong Meiling's expert team conducted safety and ?re safetyinspections at its subsidiary, Zhongshan Changhong. The inspection focused on safety managementdocuments, on-site risk identification, and hazard investigation, with particular attention to equipmentand electrical systems, safety management system documents, hazardous chemical storage and usageareas, and ?re safety facilities.
To standardize the reporting and investigation of work safety incidents and to prevent and reduce suchincidents, the company has established theRegulations on the Supervision and Management of Work SafetyIncident Reporting and Investigation. These regulations define the classification of incident levels, thedivision of responsibilities among departments and personnel, incident reporting procedures and content,on-site incident protection, investigation and analysis processes, work injury reporting, and labor capacityassessments. Based on the results of investigations, the company holds responsible units and individualsaccountable and proposes improvement measures to enhance overall work safety standards. In 2024, thecompany experienced no safety incidents.
Response to Safety Incidents
Con?ned Space Rescue Drill
Factory-level Fire Emergency Evacuation Drill
Emergency Awareness Training—Summer Heatstroke Prevention and Response
Electric Shock Rescue Drill
During the reporting period,the company organized emergency
conducted self-rescue
with over
mutual rescuetraining sessions, involving
5,000
drills
sessions
participants
employees
The company has developed acomprehensive emergency responsesystem, including general emergencyplans, specialized plans, and on-site response plans for variousscenarios. Regular training anddrills are conducted for fire safety,hazardous chemicals, and otherincident scenarios to test emergencyresponse capabilities and improveemployees' safety awareness.
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
In accordance with laws and regulations such as theRegulations on the Safety Management of Hazardous
Chemicals, the company has established theHazardous Chemical Safety Management Regulationstostandardize the entire process of chemical procurement, equipment and facility management, usage,and storage. Additionally, the company conducts regular training and assessments for relevant personneland organizes hazardous chemical emergency drills every six months to continuously improve themanagement of hazardous chemicals.
The company systematically identifies safety risks, quantifies risk levels using assessment tools, andeffectively reduces work safety risks through hierarchical control mechanisms, risk communicationmeasures, and the distribution of protective equipment.
Hazardous Chemical Management
Work Safety Risk Prevention and Control
The company promotes a diverse range of safety culture awareness and education activities, fostering aculture that values safety, pays attention to safety, and actively participates in safety management. Thisguides employees to develop correct safety concepts, behaviors, and work practices, achieving the long-term goal of enterprise work safety.
Safety Culture Development during the Reporting Period:
Chemical procurementstrictly follows the company'sprocurement process to ensurecompliance with national laws,regulations, and standards,reducing the risk of chemicalincidents at the source.
The company reviews thequalifications of chemicalsuppliers to ensure theypossess legal permits for theproduction, operation, andtransportation of hazardouschemicals.
The company assesses thepotential safety risks ofnew chemicals, identifyingphysical, chemical, andenvironmental hazards inadvance and implementingcorresponding preventivemeasures.
Chemical Procurement
SupplierQuali?cation Review
Chemical Risk
AssessmentComprehensive Management Measures for Hazardous Chemicals
The company's safety risk classification and control are based on the standardsGB 13861 (Classification and Codes of Hazards and Harmful Factors in ProductionProcesses) and GB 6441 (Classification Standards for Work-Related Injuries andFatalities). The LEC (Likelihood, Exposure, and Consequence) method is used toquantify risk levels, and targeted measures are implemented accordingly.
Safety risk noti?cation signs are posted in hazardous chemical areas, and workers areprovided with appropriate personal labor protective equipment to improve workplacesafety levels.
Based on different risk levels, control responsibilities are divided into three tiers:
department heads, company responsible executives, and company top executives.Each tier has clearly de?ned responsibilities and duties to enhance accountability.The company conducts an annual identification of hazardous and harmful factorsfrom May to June. After risk assessment, control requirements are proposed from bothengineering and management perspectives to comprehensively reduce safety risks.
Safety RiskIdenti?cationand Assessment
Safety RiskNoti?cation andProtection
Safety RiskHierarchicalControl
The company organized 116 lectures, with 3,152 participants; conducted 306activities such as "Workplace Safety Discussions", pre-shift meetings, and casestudies, involving 3,585 participants.23 employees participated in the "Employee Work Safety Zone" specializedlearning on the national platform; 1,927 persons participated in quizcompetitions; 164 employees completed the "ANKANG Cup" mock exams. Thecompany organized 6 "ANKANG Cup" competitions; released 20 videos for theonline "Escape Drill Training Camp".
The company held 16 on-site events for the "Safety Consultation Day", with848 participants, and conducted 11 online webcasts, attracting 1,976 viewers.
The company organized 13promotional activities targetingemployees and their families, with1,061 participants; 1,874 employeesparticipated in the Liangongbaoonline knowledge competition.
SafetyEducation and
AwarenessCampaigns
"ANKANG Cup"Competitions
SafetyConsultationand Promotion
Other SafetyActivities
Safety Culture Development
Online webcasts on the "Safety Consultation Day"
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Liangongbao Online Knowledge Competition
To enhance overall safety awareness, promote safety knowledge, improve emergency response capabilitiesand create a safety culture atmosphere, the company organized the Liangongbao online knowledgecompetition. With attractive rewards, the competition signi?cantly boosted employee participation andfurther strengthened their safety awareness.
Safety Production Month Kicko? Meeting
Safety Knowledge Quiz
Emergency Skills Competition
Safety Month Lecture
Work Safety Month Activities
In June 2024, the company and its subsidiaries organized a variety of activities for the Work Safety Month.These included safety lectures, viewing safety education videos, safety knowledge tests, and emergencyskills competitions, all of which consolidated and deepened the concept of safety development among allemployees.
2024 Liangongbao Online Knowledge Competition Participation
Manufacturing Plant 1Manufacturing Plant 2
Manufacturing Plant 3Other departments
scoreNumber of persons
47,122points
95,235points
91,639points
7,182points
91people
658people658people
858people
CaseCase
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Facing the complex and ever-changing landscape of work safety, Changhong Meiling introduced theEHS Work Safety Information Management Platform. Built on the foundation of risk classification andcontrol and hidden hazard identi?cation and management, the platform leverages the advantages of 5Gtechnology to meticulously develop three key application scenarios:
1.5G + Safety and Environmental Data Collection, which enables e?cient and accurate collection of safety
and environmental data.
2.5G + Redcap Pilot, which explores new communication models for work safety.
3.5G + Risk Area Control, which provides real-time and dynamic monitoring of key areas.
The EHS Work Safety Information Management Platform not only achieves precise control and intelligentidenti?cation of major hazards but also comprehensively covers the entire process management of specialoperations and safety education and training for all employees. Through this platform, Changhong Meilinghas successfully established a closed-loop management system that includes rapid perception, real-timemonitoring, early warning, dynamic optimization, intelligent decision-making, coordinated response,system evaluation, and global collaboration. This system effectively eliminates safety hazards at thesource, building a solid defense line for employee occupational health and safety, and creating a stableand secure environment for the company's high-quality development.During the reporting period, the EHS Work Safety Information Management Platform integrated 4wastewater monitoring points, 2 exhaust gas monitoring points, and conducted intelligent analysisand alarm monitoring for 6 key risk areas. Additionally, 285 high-definition surveillance cameras weredeployed, comprehensively covering critical operational areas and providing a strong guarantee for thecompany's work safety.
Digital Construction
EHS安全生产信息管理平台
Social Responsibility
In 2024, Changhong Meiling remained steadfast in fully implementing the decisions and plans made by the CPCCentral Committee and the State Council regarding rural revitalization. The company actively responded to thecall to promote rural revitalization and contributed to the development of rural areas. Changhong Meiling adopteda "purchase-to-support" approach, injecting strong momentum into the revitalization of rural industries. Thecompany also focused on special groups within rural revitalization, providing targeted assistance and conveying itscommitment to rural revitalization both internally and externally, demonstrating the responsibility of a state-ownedenterprise.
To actively respond to the rural revitalization strategy and help fruit farmers expand sales channels,increase income, and improve their livelihoods, the company purchased 20 tons of high-quality kiwifruitfrom rural areas.
In April 2024, the company launched a care initiative for left-behind children, donating a "Blue OxygenHand-Washing" washing machine to a school in Chengkan, Huangshan. This initiative aimed to reducethe children's daily burdens, improve rural education and living conditions, and contribute to ruralrevitalization.
Rural revitalization
EHS Work Safety Information Management Platform
Case
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The "14th Five-Year Plan" has outlined a new development blueprint, making digital transformation andupgrading an inevitable choice for the era, guiding enterprises and industries toward a new journey of high-qualitydevelopment. Changhong Meiling actively responded to the national call to accelerate informatization construction,driving the company's digital transformation. Under the leadership of the Digital Transformation GovernanceCommittee, the company focused on three pathways: digital support for business, digital value creation, anddigital-driven innovation, continuously building and optimizing new capabilities across six dimensions.
Bearing social responsibilitiesDigital Transformation
Changhong Meiling continued to promote the application of the "C+3" customer order system model,increasing the proportion of "C+3" orders and the direct-to-customer delivery rate. The company alsoadvanced the transformation of its e-commerce business, collaborated with Changhong headquarters toupgrade the warehousing system, improved inventory turnover, and enhanced market share.
Changhong Meiling deepened the application of its PLM-based intelligent R&D platform, improving theefficiency of processes such as parts release and BOM （Bill of Materials）release to meet the demandfor small-batch, multi-variety, customized production in overseas markets. The company also exploredapplication scenarios for 3D simulation technologies in assembly, ergonomics, and thermal load analysis.
Digital Marketing
Digital R&D
Through the integrated innovation and application of next-generation information technologies inmanufacturing, Changhong Meiling built a 5G fully connected smart factory based on digital, networked,and intelligent manufacturing and service systems. The company continued to advance the digitaltransformation of its manufacturing, operations, and value chain systems. By replicating and promotingMES (Manufacturing Execution System), the company achieved full-process visual control of orders. Italso implemented systems such as EHS and EMS (Energy Management System), constructing a unifiedIoT platform to enable real-time online monitoring of environmental, safety, and energy metrics. Thisimproved energy e?ciency, created a green and low-carbon industrial park, and reduced the likelihood ofsafety and environmental incidents.
Digital Manufacturing
Forecast is defined asparallel preparation forC+3 mode operation,corresponding to C-1Cycle
“M+1” / “M+2”Sales Forecast
Customer/Sales UnitOrder Placementis defined as thestarting point of C+3mode, correspondingto C Cycle
Procurement andMaterial Kitting arede?ned as the secondnode of C+3 mode,corresponding to C+1Cycle
Product OfflineProduction isdefined as the thirdnode of C+3 mode,corresponding to C+2Cycle
Logistics Shipment isde?ned as the fourthnode of C+3 mode,corresponding to C+3Cycle
C+3 Cycle
Logistics
C+2 Cycle
Production
C+1 Cycle
Procurement
C Cycle
Order
C-1 Cycle
Forecast
Customer/Sales Unit
Order Placement
Long-Lead MaterialRolling PlanOrder AggregationS&OP Review
Short-Lead Material
ProcurementMaterial Kitting
Production PlanningProduction ExecutionLogistics Shipment
Online Collaborative Design
Product Lifecycle Management (PLM)
Multi-System Integration
Knowledge Base Management
Standardized Management
Top-Down Online CollaborativeDesignEffective 3D Model CollaborativeDesign
Task-driven product design with fulllifecycle management; Visualized projectprogress monitoring
Achieve ERP collaborationand close manufacturinginteraction flowthrough process-drivenmethodology to enablebusiness synergy
Online Standard Library& Knowledge Base
Build efficient visualizedbusiness process libraries(preferred parts, modules,product templates) withnormalized and highlystandardized management
intelligent
R&D
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Through the ISRM-based smart supply chain interaction platform, Changhong Meiling provided supplierresource services to users and suppliers, enhancing the quality of service among "users, enterprises,and suppliers". To address the needs of procurement supply chain safety, speed, efficiency, and costoptimization, the company leveraged new industrial internet technologies to empower the digital,transparent, refined, and accurate delivery capabilities of the industrial internet platform, achieving a
26.3% improvement in inventory turnover.
Changhong Meiling further advanced the construction of its network and information security platform,establishing a situational awareness platform and an industrial control network and information securitysystem. Additionally, the company comprehensively promoted the pilot implementation of desktopterminal data security protection systems and cloud desktop systems, reducing the risk of sensitive dataleakage. It also achieved o?-site disaster recovery for core data, ensuring data security and availability.
Digital Supply Chain
Information Security
"5G Factory" Certi?cation
3A Certi?cation for Integration ofInformatization and Industrialization
National 3-Star Certi?cation for DigitalTransformation Maturity (First Batch)
Key Achievements
Changhong Meiling places great importance on building a civilized community with local residents. The companyhas established smooth communication mechanisms with local communities, actively addressing the needs ofcommunity stakeholders and integrating into community governance and activities. This has enhanced publicsatisfaction and happiness, showcasing the exemplary role of a state-owned enterprise.
Community Engagement
To raise awareness and prevention of occupationaldisease hazards among employees and the public,Changhong Meiling's labor union collaborated with HefeiThird People's Hospital, Jinxiu Community Health ServiceCenter, and Jinxiu Community Management Committeeto organize a training session on occupational healthmonitoring and management.
Changhong Meiling actively participated in the "FireflyPlan—Caring for the Happy Growth of Two-Child Families",a micro-public welfare initiative launched by the JinxiuCommunity Party Branch. The initiative advocates forattention to two-child families and promotes the healthygrowth of children.
Case
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Leveraging its strengths as a national-level intelligent manufacturing demonstration enterprise,Changhong Meiling conducted 26 study tours, hosting student groups from over 20 primary and secondaryschools in Hefei. The company brought hands-on labor practice classes to the production frontlines,o?ering innovative and engaging courses such as fun experiment classes, creative labor classes, and brandhistory classes. These e?orts deepened students' understanding of the concept of "Made in China".
Changhong Meiling earnestly fulfills its corporate responsibilities by supporting public welfare and charitablecauses, encouraging employees to participate in volunteer services and philanthropy, and actively giving backto society. The company promotes social regeneration and sustainable development, achieving a commondevelopment of employee growth, corporate vision, and societal prosperity.
Social Contribution
In response to the ?ood disaster in Shexian County,Huangshan, Changhong Meiling proactively assumedsocial responsibility by rushing to the disaster areawith essential supplies such as food and water. Thecompany also provided free home appliance repairservices, contributing to the recovery of the a?ectedresidents' lives.To celebrate the 75th anniversary of the founding of the People's Republic of China, the company activelyparticipated in a thematic performance event organized by the Hefei Economic and TechnologicalDevelopment Zone. Employees were encouraged to showcase their talents, forming a choir to contributeto the event.
Thematic Performance and Singing CompetitionChanghong Meiling "Old Boys" Band
Key perfomance in 2024Amount of CharitableDonations
Number ofVolunteer Activities
Employee Participationin Volunteer Activities
Total Hours of Volunteer Activities
1927969 2,40410,000 RMBSessionsPerson-timesHours
To support the high-quality development of publichealth services, Zhongke Meiling donated anautomated vaccination workstation to the LinhuCommunity Health Service Center in Hefei Economicand Technological Development Zone through theHefei Red Cross Society. The workstation integratesstorage and vaccination, ensures zero errors inautomatic vaccine dispensing, enables traceability ofvaccination information, and improves the e?ciencyand accuracy of vaccine management.
Case
Case
Case
Case
GovernanceChanghong Meiling strictly adheres to laws, regulations, and the management requirements oflisted companies, continuously improving its corporate governance mechanisms, strengtheningtax, compliance, and risk management. The Company fosters a favorable market environmentthrough integrity and fairness, creating high-value returns for shareholders through high-qualitydevelopment.
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Corporate Governance Mechanisms
The Company’s organizational structureis rational and operates e?ectively, witha governance system centered on theShareholders’ General Meeting, Boardof Directors, Board of Supervisors, andManagement Team. This governancesystem maintains checks and balances,with clear responsibilities and effectiveoperations, forming a comprehensive,cohesive, and efficient corporategovernance and management structure.
Robust corporate governance is a critical foundation for the Company’s sustainable development. In accordancewith theCompany Law of the People’s Republic of China, the Securities Law of the People’s Republic of China,the Corporate Governance Guidelines for Listed Companies, the Listing Rules of the Shenzhen Stock Exchange,the Self- Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange — StandardizedOperation of the Listed Companies on Main Board, and other relevant laws, regulations, and internal policiessuch as theArticles of Association Guidelines, the Company has established a governance system centered on theShareholders’ General Meeting, the Board of Directors, the Board of Supervisors, and the Management Team. TheBoard of Directors has established specialized committees, including the Strategy Committee, Audit Committee,Nomination Committee, Compensation and Assessment Committee, and ESG Management Committee, as well asan Independent Directors’ Special Meeting. The Company continuously improves its governance mechanisms,enhances standardized operations, strengthens the execution of its systems, and ensures that the Shareholders’General Meeting, Board of Directors, Board of Supervisors, and Management Team each ful?ll their roles e?ectively,maintaining checks and balances and enabling scientific decision-making to safeguard the Company’s high-quality development.The Company has developed a detailed delegation manual to manage its subsidiaries, setting clear approvalprocedures and authority to achieve scientific, reasonable, and efficient management. The Company appointsdirectors, supervisors, and senior executives to subsidiaries to represent the Company in fulfilling their duties.Functional departments of the Company maintain contact with their counterparts in subsidiaries to provideguidance and supervision on daily operations. Policies and procedures for performance targets, budget control,authorization and approval, evaluation, and audit supervision are established to e?ectively control subsidiaries’business activities and ?nancial matters.
Governance Strategies and Processes
Organizational Structure and FunctionsGovernance System Centered on the Shareholders" General Meeting, Board ofDirectors, Board of Supervisors, and Management Team"
Organizational Structure Chart
The Shareholders’ General Meeting is the Company’s highest authority, responsible for reviewing andapproving major matters. The Company strictly complies with laws, regulations, theArticles of Association,and theRules of Procedure for the Shareholders’ General Meetingto standardize the convening,conducting, and voting procedures of the Shareholders’ General Meeting. In addition to in-personmeetings, the Company provides secure, economical, and convenient online voting methods to facilitateshareholder participation in corporate governance. Furthermore, the Company implements separate votingcounts for proposals submitted to the Shareholders’ General Meeting by minority investors, promptlydisclosing the results to e?ectively protect their rights and ensure that all shareholders, especially minorityshareholders, can fully exercise their rights.
The Board of Directors is accountable to the Shareholders’ General Meeting and serves as theCompany’s decision-making body, responsible for implementing resolutions of the Shareholders’General Meeting and formulating business plans and investment proposals. The Company strictly adheresto the Articles of Association and the Rules of Procedure for the Board of Directors in convening andconducting Board meetings, ensuring that deliberations, voting, and information disclosures complywith relevant laws and regulations. All directors diligently ful?ll their duties, actively attending Board andShareholders’ General Meetings and exercising their powers in accordance with the law. The specializedcommittees under the Board of Directors, operating in accordance with their implementation rules,leverage their professional expertise to discuss, decide, supervise, and evaluate major Company matters,playing a crucial role in enabling scienti?c decision-making and improving the e?ciency and quality ofBoard decisions.During the reporting period, the Company’s 2024 First Extraordinary Shareholders’ General Meetingapproved proposals related to the Board’s reelection, and the Board successfully completed its reelectionin compliance with legal and regulatory requirements. In 2024, the Board of Directors held 15 meetings,all conducted in strict accordance with relevant laws, regulations, and the Articles of Association, with allresolutions being legally valid.
We continuously optimize the Board’s structure, encouraging directors to express diverse perspectivesand opinions based on their professional backgrounds to enhance the scientific and rational natureof Board decisions. We have established a scientific evaluation mechanism to regularly assess Boardmembers, ensuring they dedicate sufficient time and effort to Company affairs and fulfill their dutieseffectively. Digital tools, such as online meetings, are introduced to improve meeting efficiency anddecision-making transparency. We leverage the expertise of professionals, including auditors, to provideprofessional opinions and decision-making support for the Board, e?ectively enhancing decision-makingefficiency and corporate governance standards. Board members are actively encouraged to participatein training organized by regulatory authorities to improve their professional capabilities in corporategovernance, sustainable development, industry trends, and risk management.
Shareholders’ General Meeting
Board of Directors
Directors and the Board of Directors
E?ectiveness of the Board of DirectorsBoard ofSupervisors
General Meetingof Shareholders
Strategy Committee
Audit CommitteeNomination CommitteeCompensation & Evaluation
Committee
ESG ManagementCommittee
Board ofDirectors
ExecutiveManagement Team
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The Company has established and improved an independent director system, creating favorableconditions for independent directors to ful?ll their duties and fully leverage their positive role in strategicdecision-making, risk control, and corporate governance. In accordance with the Administrative Measuresfor Independent Directors of Listed Companies and other relevant laws and regulations, as well as theCompany’s Independent Director System, the proportion of independent directors on the Board mustnot be less than one-third, including at least one accounting professional. Independent directors adhere tolaws, regulations, and the Company’s policies, upholding the principles of independence, prudence, anddiligence. They actively participate in corporate governance through various means and diligently performtheir supervisory responsibilities. Additionally, the Company has established an Independent Directors’Special Meeting to review and provide opinions on related-party transactions, cash dividends, and majormatters, effectively exercising checks and balances, mitigating operational risks, and safeguarding theinterests of the Company and all shareholders.The Company is committed to building a diverse Board of Directors, actively promoting policies for Boardmember diversity. The Nomination Committee considers diversity indicators such as candidates’ workexperience, educational background, cultural diversity, gender, and age when selecting candidates,ensuring that their qualifications align with the Company’s strategic development. A diverse Board,with varied professional expertise and personal potential, contributes to the Company’s high-qualitydevelopment. All Board appointments are based on merit, with the benefits of diversity objectivelyassessed during the selection process.The 11th Board of Directors includes members with diverse backgrounds in marketing, technology,finance, management, and more. Directors collaborate sincerely, complement each other’s strengths,and inject new vitality into the Company’s sustainable development with an open and innovative spirit.
Independent Directors and Diversity
The Board of Supervisors is the Company’s supervisory body, responsible for overseeing the Company’s?nancial and operational conditions, as well as the performance of directors and senior executives.The Board of Supervisors consists of 3 supervisors, including 1 employee representative. Shareholderrepresentatives are elected or replaced by the Shareholders’ General Meeting, while employeerepresentatives are elected by the Employee Representative Assembly. In 2024, the 32nd meeting of the10th Board of Supervisors approved an adjustment to optimize the Company’s supervisory system,reducing the number of supervisors from 5 to 3. The Company’s 2024 First Extraordinary Shareholders’General Meeting passed proposals related to the adjustment and reelection of the Board of Supervisors,which was successfully completed in compliance with relevant laws, regulations, and internal policies.The Board of Supervisors strictly follows the Articles of Association and the Rules of Procedure for theBoard of Supervisors to convene and conduct meetings. The voting and information disclosure procedurescomply with relevant regulations. During the reporting period, all supervisors diligently and faithfullyful?lled their duties in accordance with the Rules of Procedure for the Board of Supervisors. By attendingShareholders’ General Meetings and Board meetings, they supervised the Board’s decision-makingprocesses, resolutions, and the Company’s lawful operations from the perspective of safeguarding theCompany’s and shareholders’ legitimate rights and interests. They reviewed periodic reports preparedby the Board and provided written review opinions, e?ectively supervising major matters, related-partytransactions, ?nancial conditions, and the legality and compliance of directors, the President, and othersenior executives’ performance, and provided independent opinions to maximize the protection of theCompany’s and shareholders’ legitimate rights and interests.In 2024, the Board of Supervisors held 10 meetings to review the Company’s major matters and relateddecision-making processes, providing relevant opinions and suggestions based on the proposals and itssupervisory responsibilities. All meeting resolutions were legally valid.
Board of Supervisors
Number of Directors
Number of FemaleDirectors
Proportion of Independent Directors
Number of Female Directors,Supervisors and Senior Executives
Proportion of Female Directors, Supervisors and Senior Executives
Number of Independent Directors
Proportion of FemaleDirectors
33.3
23.53
22.2
%
%
%
Attendance at MeetingsDirectors are required to actively attend all meetings of the Board of Directors and theShareholders’ General Meeting. Directors must not request leave for Board meetings. Ifunable to attend a Shareholders’ General Meeting in person, a director must delegate anotherdirector to attend on their behalf and provide reasons if necessary. Additionally, directors mustdiligently review all proposals and express their opinions on relevant matters.Decision-Making and Voting
Directors must carefully review all proposals submitted to the Board of Directors, activelyparticipate in discussions, and make independent voting decisions based on their personaljudgment.Independent DirectorsIndependent directors strictly adhere to the requirements of the independent director system.They conduct on-site inspections, spend no fewer than 15 days on-site, listen to managementreports, and review the implementation of Board resolutions.Con?dentiality ObligationsDirectors must strictly maintain the confidentiality of the Company’s trade secrets,?nancial information, and other con?dential information. They must not disclose or use suchinformation for personal gain without authorization and must sign a con?dentiality agreementas an insider.
Evaluation Mechanism ofthe Board of Directors
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The Management Team is the Company’s executive body, responsible for executing specific mattersrelated to the Company’s operations and management. The Company has one President and three VicePresidents. The Nomination Committee is responsible for proposing the appointment or dismissal ofsenior executives to the Board of Directors, which makes the ?nal decision.
Management Team
The Company complies with the Rules Governing the Listing of Shares on Shenzhen Stock Exchange and the Self-Regulatory Guidelines No. 1 for Companies Listed on the Shenzhen Stock Exchange — Standardized Operation of theListed Companies on Main Board, actively ful?lling its information disclosure obligations. The Company strengthensinformation disclosure management, ensures the disclosure of major events, and oversees compliance by relevantdisclosure obligors to guarantee the truthfulness, accuracy, completeness, timeliness, fairness, and e?ectivenessof information disclosure. Additionally, while ensuring compliance, the Company moderately increases voluntarydisclosures to enhance the reference value and practicality of its information disclosures.The Company has established the Information Disclosure Management System and the Financial ReportManagement Regulations to lay a solid foundation for compliant information disclosure, ensuring equal accessto information for all investors. Furthermore, in accordance with the Insider Information Confidentiality Systemand the Insider Information Registrant Management System for Listed Companies, the Company standardizes theinternal reporting, transmission, and con?dentiality procedures for signi?cant information, controls the scope ofinsiders, and prevents the risk of leaks.
Information Disclosure
The Company has formulated the Investor Relations Management System, the Reception and PromotionWork System, and the Brand Crisis Early Warning Management Regulations, among others. In accordancewith relevant requirements, the Company diligently carries out investor relations management tasks,deepens communication with investors, and enhances their understanding and trust in the Company.
The Company engages with investors through the Shenzhen Stock Exchange’s “Hudongyi” platform,hotlines, email, institutional research, broker strategy meetings, reverse roadshows, and earningsbrie?ngs, fully listening to investors’ opinions and suggestions.
Institutional System Construction
Management Strategies
The Company is committed to establishing and improving investor protection mechanisms, actively buildingcommunication bridges, promptly responding to investor concerns, and conveying the Company’s value. Itenhances investors’ understanding and recognition of the Company, continuously improves investor relationsmanagement, and fosters a positive capital market image.
Investor Relations
Shareholders’ General Meetings, Meetings of the Boardof Directors, and Meetings of the Board of SupervisorsNumber of Shareholders’General Meetings
Number of Items Discussed andReviewed at Shareholders’General Meetings
Number ofMeetings of theBoard of Directors
Number of ItemsDiscussed andReviewed by theBoard of Directors
Periodic Reports DisclosedInterim Announcements Disclosed
2023 Information DisclosureExchange Rating
Number of Meetings of theBoard of Supervisors
Number of TopicsReviewed by the Board ofSupervisors
Number of Times a Particular Topic wasNot Approved at the Above Meetings
476B
The Company has established a two-way communication mechanism, activelyengaging with shareholders and investors through Shareholders’ General Meetings,on-site research meetings, earnings brie?ngs, and online investor receptions.
Through official WeChat, video channels, and other platforms, the Company usesvisual infographics and short videos to promptly and comprehensively present thelatest developments to investors, leveraging diverse media channels to expandinformation coverage and influence. Additionally, the Company enhances theinvestor relations section of its o?cial website, continuously publishing updates forinvestors’ quick access.
The Company organizes research activities, conference calls, site visits, and otherevents to help investors understand the Company’s operations.
The Company promptly addresses questions raised by investors on the “Hudongyi”platform, confirming information with relevant business units as needed to ensuretimely responses.The Company provides dedicated investor contact lines, fax numbers, and emailaddresses, ensuring availability during working hours and arranging personnel toprovide timely feedback to investors.The Company actively participates in large-scale listed company exchange eventsorganized by brokers, engaging with investors to strengthen its brand image in thecapital market.By visiting investors in person, the Company introduces its business operations,enhancing investors’ understanding of the Company.
MeetingCommunicationResearchReceptions
OnlineInteractionPhone, Fax,
and Email
StrategyMeetings
ReverseRoadshows
MediaCommunication
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The Company’s public opinion monitoring covers traditional media as well as new media platforms suchas East Money Stock Bar and Xueqiu.com. From pre-monitoring to in-process handling and post-tracking,the Company effectively manages negative incidents. When faced with negative investor comments, theCompany responds appropriately in a timely manner and simultaneously releases positive content to guidepublic opinion. In cases of malicious or false reports, the Company promptly contacts the media and authorsfor positive and e?ective communication to minimize negative impacts. In 2024, the Company experiencedno signi?cant public opinion incidents.The Company implements a continuous, stable, and transparent pro?t distribution policy, balancing long-term interests and sustainable development while prioritizing reasonable returns for investors. The 2023Annual Shareholders’ General Meeting approved the shareholder return plan for the next three years(2024–2026), stipulating that the Company will distribute profits annually from 2024 to 2026, providedthat pro?ts and cash ?ow meet normal operations and long-term development needs. The Company mayalso conduct interim cash dividends or stock dividends based on profitability and capital requirements,with cash dividends being the preferred form of profit distribution. The total cash dividends (includinginterim dividends) distributed in a single year shall be no less than 15% of the distributable pro?ts of thelisted parent company for that year but shall not exceed the lower of the distributable pro?ts in the parentcompany’s ?nancial statements and consolidated ?nancial statements.
Management Measures and Results
Amount of 2023 Annual Pro?t Distribution
IR Interactive Responses
Investor Hotline Calls ReceivedInstitutional Investor Receptions
Proportion of Net Pro?t Attributable toListed Company Shareholders
Earnings Brie?ngsInvestor Receptions
30,897.71
560757
41.70
%10,000 RMB
Investor Research Activities
The Company’s actual controller is the Mianyang State-owned Assets Supervision and AdministrationCommission, and its controlling shareholder is Sichuan Changhong Electric Co., Ltd. The Company has acomplete business system and independent operating capabilities, maintaining independence in business,personnel, assets, organization, and ?nance from the actual controller and controlling shareholder.
Identi?cation of the Actual Controller
The Company has independent and complete business operations and autonomous managementcapabilities. It has dedicated departments for procurement, production, technology, sales, andhuman resources, managing its business independently. Its operational personnel are independentof the controlling shareholder and its subsidiaries.
The Company possesses independent production and operation facilities and a completeasset structure separate from the actual controller and controlling shareholder. This includesindependent production, procurement, sales, auxiliary production systems, and supportingfacilities, as well as assets such as land use rights and property ownership.
The Company has established organizational structures fully independent of the actual controllerand controlling shareholder. The Shareholders’ General Meeting, Board of Directors, Board ofSupervisors, and internal organizations operate independently, with no interference in businessdecisions by the actual controller or controlling shareholder beyond the authority of theShareholders’ General Meeting.
The Company has an independent financial management department, an independentaccounting system, and ?nancial management policies. It maintains independent bank accountsand tax ?lings.
The Company’s personnel, labor, and salary systems are fully independent. The President, VicePresidents, Chief Financial Officer, and Board Secretary all work for the Company and receivecompensation from the Company. They do not hold any administrative positions or receiveremuneration from the actual controller, controlling shareholder, or their subsidiaries, except asdirectors or supervisors.
Business
Assets
Organization
Finance
Personnel
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The Company has established and improved scientific, fair, and transparent performance evaluation standardsand incentive and constraint mechanisms for directors, supervisors, and senior executives. The performance ofdirectors, supervisors, and senior executives is evaluated daily by the Human Resources Department and assessedannually by the Compensation and Evaluation Committee. The remuneration, rewards and penalties of thePresident, Board Secretary, and other senior executives are determined by the Board of Directors. In accordancewith the Management Measures for Independent Directors of Listed Companies and the Articles of Association, andconsidering industry practices and the Company’s actual conditions, the 2024 First Extraordinary Shareholders’General Meeting approved the standards for independent directors’ allowances to better leverage theirsupervisory and decision-making roles.
In accordance with the Basic Norms for Enterprise Internal Control and relevant government directives, and inline with the Company’s strategic planning and operational objectives, the Company has formulated the BasicSystem of Compliance Risk Control Management and the Measures for the Administration of Compliance Reviewamong other policies. These documents define the organizational structure, division of responsibilities, basicprinciples, management requirements, and procedures for internal control. Additionally, the Company monitorschanges in laws, regulations, and regulatory policies, promptly reviewing and improving its rules and regulationsto convert external compliance requirements into internal policies. In 2024, the Company formulated or revisedover 70 internal control-related systems, including the Corporate Strategic Planning Management System and theEnterprise Technical Standards Document Management Regulations.For key areas such as procurement, financial management, personnel management, service management, andsafety management, as well as high-risk businesses, the Company has established specific operational policiesor specialized guidelines to strengthen internal control. During the reporting period, the Company completedwalkthrough tests for internal control, with no non-conformities identi?ed.
The Company places great emphasis on internal financial control, building a financial control system centeredon accounting control and management control. Specifically, the Company has established comprehensiveaccounting policies to standardize accounting processes, ensuring the truthfulness, accuracy, and completenessof ?nancial information. It has compiled an authorization and delegation manual to clarify the responsibilities andauthorities of personnel at all levels, achieving clear accountability and mutual checks and balances. The Companyhas improved financial operation guidelines to standardize business processes and reduce operational risks. Ane?ective internal audit mechanism has been established to promptly identify and rectify issues through ?nancialaudits, with audit results serving as a critical basis for improving ?nancial management. By continuously re?ningits ?nancial internal control systems, the Company has e?ectively enhanced its ?nancial management capabilities,providing strong support for operational decision-making.In line with ?nancial management requirements, the Company has established eight major ?nancial managementcycles through the “Three Modernizations of Management” approach: sales and receivables, procurement andpayables, production, inventory, research and development, ?xed assets, funds, and accounting and taxation. Foreach of these cycles, the Company has formulated speci?c policies and management measures.
Compensation Management for Directors, Supervisors, and Senior Executives
Internal ControlOverall Internal Control
Internal Financial Control
01030507
0608
sales and receivablesproduction
Eight major ?nancial management cycles
research and developmentfunds
procurementand payables
inventory?xed assets, fundsaccounting and
taxation
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
The Company attaches great importance to internal audit work, establishing the Internal Audit Management Systemto provide institutional safeguards. The Audit Department, with the support of the Audit Committee, maintains ahigh degree of independence, enabling objective and impartial audit activities. The department diligently ful?llsits responsibilities centered on supervision and service. In accordance with regulations, policies, and industrystandards, the Audit Department conducts risk-oriented audits of all business units and departments, ensuring thee?ective execution of internal control procedures.
Internal Audit Management
Number of Audit Projects for the Year
The Company regards tax management as a lifeline for its development, consistently prioritizing it and takingpractical measures to continuously improve tax management capabilities. The Company has formulated taxmanagement systems such as the Value-Added Tax Invoice Management Measures and the Enterprise Income TaxDeduction Voucher Management Measures, updating them in response to the latest business realities, processes,and tax policy changes to enhance tax compliance and reduce tax risks.Based on tax-related policies, regulations, and the Company’s overall ?nancial and risk control requirements, weregularly identify and manage tax governance risks. A comprehensive tax risk assessment and control mechanismhas been established, following the PDCA (Plan-Do-Check-Act) cycle, covering tax policy changes, business-taxdi?erences, tax risk lists, and tax information management, e?ectively preventing and mitigating tax risks.
The Company consistently adheres to ethical business practices, upholds compliance as a bottom line, andintegrates compliance principles into all aspects of its operations and management. The Company continuouslyimproves its compliance operation mechanisms, strengthens the foundation for compliance risk prevention andcontrol, enhances compliance reviews, and advances the development of a compliance culture. Additionally, theCompany actively builds a compliance management organizational structure that aligns with its development,e?ectively identi?es and manages compliance risks, and systematically advances the construction of its compliancemanagement system, driving high-quality development through e?cient compliance management.
The Company has implemented a series of measures to strengthen tax management. It conducts regular tax-speci?c inspections and issues detailed reports to ensure timely identi?cation and correction of tax issues. Throughorganized learning, sharing, and discussions, the Company has built an internal tax knowledge base, continuouslyenhancing the compliance awareness and tax management capabilities of relevant personnel. Additionally, theCompany actively promotes the digital transformation of tax management, improving settlement e?ciency throughfully digital electronic invoices and achieving paperless invoicing, safeguarding the Company’s sustained andhealthy development.
Tax Management
Compliance Management
Organize in-depth training fortax personnel and relevantbusiness departments toaccurately grasp the conditionsand application processes for taxincentives; classify and properlystore supporting documents asrequired by tax authorities
Follow the arm’s lengthprinciple for related-partytransaction pricing; promptlyand fully submit related-partytransaction declarations to taxauthorities, including details ofrelated enterprises, transactiontypes, and amounts
Establish strict invoicemanagement systems;strengthen training on invoice-related regulations andoperational requirements for?nancial and business personnel
Tax IncentiveApplication Risks
Invoice Management Risks
Related-PartyTransaction Risks
the PDCA
cycle
Act
CheckDo
Plan
The Company actively ful?lls its tax obligations, promptly and accurately declares tax information,and conducts tax ?lings and payments in an orderly manner. It voluntarily accepts tax inspections,and its tax credit rating has consistently been classi?ed asA by tax authorities for many years.
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Four-Element Framework for Compliance Management Topics
The Company has formulated compliance management systems, including the Basic System of ComplianceRisk Control Management, the Measures for the Administration of Compliance Review, the Compliance andRisk Control Work Guidelines, the Internal Control System Standards, the Compliance and Risk ControlAdministrator Management Measures, and the Implementation Measures for Accountability in IrregularBusiness Operations and Investments. These systems provide a solid institutional foundation for compliancemanagement. In terms of the compliance system, the Company has established a multi-level governancestructure encompassing the “Shareholders’ General Meeting/Board of Directors/Party Committee—Company Leadership—Chief Compliance Officer—Board Office and Compliance and Risk ControlDepartment—Functional Departments—Business Execution Units”, clarifying the division of responsibilitiesand authorities for compliance management.
To ensure continuous compliance in its operations, Changhong Meiling prioritizes risk management,aiming to establish a closed-loop risk management mechanism of “risk identification—remediation—tracking and early warning—remediation verification”. The Company has built a risk managementsystem covering risk identi?cation, assessment, monitoring, and response, and established a routine riskmanagement reporting mechanism to ensure transparency and timely decision-making.
Governance Related to Compliance Management
Strategy Related to Compliance Management
Risk and Opportunity Identi?cation and Response MeasuresRisk FactorRisk/Opportunity Description
ImpactLevel
ImpactDuration
Mitigation MeasuresPolicy andRegulatoryRisks
Changes in domestic andinternational laws andregulations (e.g., antitrust laws)may increase compliance costs
Medium
Medium toLong Term
Monitor changes in relevant policiesand regulations, and implementpreventive measures in advanceMarketand PublicOpinion Risks
Non-compliance incidents maylead to negative public opinion,a?ecting business operations,such as customer loss and stockprice declines
HighShort Term
Develop emergency responsemeasures for compliance incidents,clarify event handling proceduresand responsibilities, and minimizeadverse impacts promptlyBrand ValueOpportunities
A good corporate image canmore easily gain consumer trust,thereby enhancing brand value
MediumLong Term
Improve the credibility of corporatecompliance management byreferencing standards such as ISO37301
Risk FactorRisk/Opportunity Description
Impact
Level
ImpactDuration
Mitigation Measures
Export Controland EconomicSanction Risksin OverseasBusiness
Import/export of goods, itemtransfers, and personnelemployment may beprohibited or restricted due toanti-subsidy, antitrust, anti-dumping policies, or changesin international environmentsand policies, impactingoverseas operations, maybe subject to economicsanctions, leading to impactson overseas operations.
Medium
Medium toLong Term
Continuously monitor customs,tax, and foreign exchangecontrol policies in clientcountries, establish early warningmechanisms and promptly reportto the Company any policy changesthat may a?ect transactions, soas to adjust business strategiesproactively. Strengtheninternational market research tostay informed of market trends andcompetitive dynamics. Enhancecorporate credibility through socialresponsibility audits, stabilizefunding channels, and strengthenrelationships with core clients toimprove risk response capabilities.
IntegrityRisks amongPersonnel
Some non-compliantpersonnel may abusetheir power for personalgain, using their positionsto bene?t themselves,relatives, or speci?crelationships, engaging inimproper behaviors such asunauthorized consumptionand mutual banqueting,tarnishing the Company’simage.
MediumLong Term
Strengthen awareness of disciplineand rules, strictly follow systemsand procedures. Ful?ll dualresponsibilities, integratingParty conduct and integrity withbusiness operations. Enhanceintegrity awareness among cadresand employees through integritycommitment agreements andintegrity training.
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Compliance Review Process
The Company embeds compliance reviews into its operational management processes, making them a mandatoryprocedure for core policy formulation, major decision-making, important contract signing, major projectoperations, large-scale procurement and sales, and signi?cant fund management.Business units conduct compliance self-checks, evaluations, and assessments of submitted matters based on laws,regulations, regulatory requirements, and internal policies, forming preliminary conclusions before submittingthem for administrative approval. Depending on the category of the submitted matter, the administrative approvalprocess involves selecting the relevant functional department for compliance review. Functional departmentscomplete compliance reviews according to their responsibilities and division of labor. The relevant business andfunctional leaders, as well as senior management, review the submitted matters after compliance reviews. Forcore policies and major decisions, the Board O?ce and Risk Control Compliance Department conduct a secondaryreview, and the Chief Compliance O?cer provides comments. Matters requiring review by the Party Committee,Board of Directors, or Shareholders’ General Meeting undergo comprehensive deliberation and decision-makingthrough the appropriate procedures.
Changhong Meiling has established an integrated compliance and risk management system that is risk-oriented, compliance-focused, and internal control-driven. Based on operational objectives, risk levels,and resource allocation, the Company scienti?cally sets up management structures, clari?es managementresponsibilities, and reasonably allocates management personnel. The Company has built a “three linesof defense” for compliance and risk management, consisting of business departments, the Board O?ceand Risk Control Compliance Department, the Audit and Supervision Department, and decision-makingbodies, ensuring that risk control, compliance, and internal control management are fully implemented interms of “structure, responsibilities, and positions”.
In accordance with laws, regulations, national standards, theGuidelines, and its actual conditions, theCompany has set relevant goals for compliance governance and continuously tracks their execution.During the reporting period, the Company completed its compliance governance-related objectives.
Management of Compliance-Related Impacts, Risks, and Opportunities
Compliance-Related Indicators and Goals
CategoryTargetTime FrameProgress During Reporting PeriodComplianceViolation
Zero major compliance violationsShort TermCompletedRiskInvestigation
Conduct a comprehensive riskinvestigation at least once annually
Short TermCompleted
Compliance Review Flowchart (CorePolicies, Major Decisions)Compliance Review Flowchart (MajorProjects, Large-Scale Procurement andSales, Signi?cant Funds, etc.)
Compliance Training
The Company actively conducts compliance training and awareness campaigns, continuously strengtheningemployees’ and compliance personnel’s legal mindset, compliance awareness, and legal compliancecapabilities, e?ectively advancing compliance e?orts.In 2024, the Company conducted over 10 training sessions on integrity, contract management, and compliancemanagement, with compliance management personnel and related sta? participating.
Total Number of Governanceand Compliance Training SessionsTotal Number of Governanceand Compliance Training Sessions
Total Number of Participants inGovernance and Compliance Training
Compliance and Risk ControlRoadshow Training
Practical Compliance andRisk Control Management
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Integrity Education Pocket Guide
Business Ethics and Anti-Corruption
Changhong Meiling strictly complies with theCompany Law of the People’s Republic of China, theBasic Normsfor Enterprise Internal Control, and other laws and regulations. The Company and its subsidiaries have establishedtheAnti-Corruption, Anti-Bribery, and Anti-Fraud Management Regulationsand theEight-point Provisions ofChanghong Meiling Co., Ltd., clarifying a compliance, risk control, and internal control anti-corruption compliancemanagement system within the legal framework. Additionally, the Company irregularly supervises and inspectsfor illegal and non-compliant behaviors, maintaining a “zero tolerance” stance towards violations of laws,regulations, and ethical principles.
To e?ectively prevent corruption, the Company requires cadres andkey employees to sign the Integrity Commitment Agreement andconducts one-on-one integrity talks with newly appointed cadresand key personnel. The Company also implements the “SunshineProcurement” initiative, requiring participating employees to signintegrity agreements, e?ectively building a company-wide integrityand risk control defense line, ensuring the implementation of anti-corruption systems, and safeguarding the Company’s integrity-driven development.
Anti-Corruption Management
To further strengthen employees’ anti-corruption awareness, the Company conductedmultiple anti-corruption training sessions for management and key personnel during thereporting period, organized case studies of typical corruption cases, and visited integrityeducation bases, achieving a
% participation rate among management.
Compliance
RiskControl
InternalControl
During the reporting period, Changhong Air Conditioner added integrity culture promotion boards andinstalled integrity culture signage in multiple roads and areas of the industrial park, enhancing the integrityculture atmosphere.
Integrity Culture Signage
2024 Key Performance
During the reporting period, neither the Company nor its employees were involved incorruption, bribery, or fraud cases concluded or under trial in court;No employees were dismissed or disciplined due to corruption;No business partner contracts were terminated or not renewed due to corruption.
To protect the privacy of whistleblowers, Changhong Meiling has formulated the Measures for the Administration ofComplaint Reporting, which clearly de?ne reporting channels, methods, and whistleblower protection measures.The Company has established multiple public reporting channels, including a whistleblower hotline, a disciplinaryinspection commission email, and a whistleblower mailbox. Whistleblowers can submit complaints and reportsanonymously, fundamentally eliminating the risk of information leakage. All reporting channels are directlymanaged by the Company’s Party Disciplinary Inspection Commission O?ce to minimize the risk of whistleblowerinformation exposure.
Whistleblower Protection
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
2024 Key Performance
Mobile OA Communication QQ Group: 539027439Whistleblower Hotline: 0551-62219043Whistleblower Email: jianghong.tan@changhong.com, li.liu@meiling.com
Number of Anti-Corruption and Anti-Bribery Training Sessions
Total Duration of Anti-CommercialBribery and Anti-Corruption Training
Total Number of Employees Participating in Anti-Commercial Bribery and Anti-Corruption Training
Total Number of Directors Participatingin Anti-Commercial Bribery and Anti-Corruption Training
Total Number of ManagementParticipating in Anti-CommercialBribery and Anti-Corruption Training
Percentage of Directors Participating in Anti-Commercial Bribery and Anti-CorruptionTraining
Percentage of ManagementParticipating in Anti-CommercialBribery and Anti-Corruption Training
1212,068
%
%
Anti-Unfair CompetitionThe Company strictly complies with the Anti-Monopoly Law of the People’s Republic of China, the Anti-UnfairCompetition Law of the People’s Republic of China, the Foreign Trade Law of the People’s Republic of China,and relevant laws and regulations for overseas operations. It has formulated the Market Order ManagementMeasures and established the Market Order Management Committee to actively build a fair and ethical competitionmechanism, striving to create a fair market environment. The Company ?rmly opposes the use of unfair means torestrict or eliminate market competition, ensuring the healthy and orderly development of the market.To systematically regulate anti-monopoly and fair competition risk control, the Company has established a full-process control mechanism. In the risk monitoring phase, the Company tracks updates to laws and regulations inreal time, studies typical administrative law enforcement cases, and identi?es potential compliance risks based onindustry characteristics. During the contract signing stage, the Company rejects clauses that violate fair competitionand opposes price monopoly clauses.
2024 Key Performance
During the reporting period, the Company did not incur any penalties for violationsof the Anti-Monopoly Law of the People’s Republic of China or the Anti-UnfairCompetition Law of the People’s Republic of China.
The Company actively responded to the 2024 ChinaFair Competition Policy Publicity Week by promotingfair competition awareness among employeesthrough platforms such as the official WeChataccount, driving the optimization and high-qualitydevelopment of the market environment.
For whistleblowers providing real-name reports and valid evidence, the Company implements strict con?dentialitymeasures, prohibiting any form of suppression or retaliation. Individuals who violate con?dentiality regulations willbe severely punished. Additionally, the Company has established a whistleblower reward mechanism, recognizingand rewarding e?ective whistleblowers to encourage employee participation and jointly uphold the Company’sintegrity.
Case
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
Performance Table
IndicatorUnit 2024 DataDirect GHG emissions (Scope 1)tCO
e 710.36Indirect GHG emissions (Scope 2) tCO
e 62,486.27Total carbon emissionstCO
e 63,196.63"Total carbon emissions per million yuan
of output value"
tCO
e/million revenue(RMB) 6.18The total environmental protection investmentRMB10,000 1,723.74Industrial wastewater discharge volumeton 763,511.73Domestic wastewater discharge volumeton 312,195.12
Total wastewater discharge volumeton 1,075,706.85Wastewater discharge volume per million
revenue(RMB)
t/million revenue(RMB)37.61Chemical oxygen demand (COD) dischargeton 113.42Biochemical oxygen demand (BOD) dischargeton 18.49
Total waste gas emissionston 6.08Waste gas emission intensityt/million revenue(RMB)0.0002Particulate matter (PM) emissionston 0.47Nitrogen oxide (NOx) emissionston 0.27Volatile organic compound (VOC) emissionston 0.67
Hazardous waste generationton 671.75Hazardous waste generation per million
revenue(RMB)
t/million revenue(RMB)0.02Non-hazardous waste generationton 31,712.26Non-hazardous waste generation per million
revenue(RMB)
t/million revenue(RMB)1.11Total amount of electricity usedMillion kWh190.0890Of which: total amount of purchased green powerMillion kWh38.9172The Company’s photovoltaic generationMillion kWh4.3678
Environmental performance
Environmental performance
IndicatorUnit 2024 Data
Total gasoline consumptionton 16.48
Total diesel consumptionton 143.20Total natural gas consumptionMillion cubic meters 274.10Thermal power (steam) consumptionMillion kilojoules 37,140.00Lique?ed petroleum gas consumptionton 13.06Percentage of renewable energy consumption% 22.77
Total integrated energy consumptionTons of standard 29,164.20Total energy consumption per million yuan of
revenue
Tons of standard coal permillion revenue(RMB)
1.02
Total water consumptionCubic meters 823,326.48Total water savingsCubic meters 10,819.00Water consumption per million yuan of revenue
Cubic meters per millionrevenue(RMB)
28.79
Total amount of recycled waterCubic meters 434,271.13Ratio of recycled water to total water consumption% 52.75Total material consumption in production and
packaging
ton 1,171,101.81Consumption of renewable materialston807,487.36The company's product quali?cation rate% 98.98Number of complaints related to products and
services
case 851Customer complaint resolution rate% 100.00Customer complaint response rate% 100.00Average response time for customer complaintsHour 0.50Average resolution time for customer complaintsHourWithin 24 hoursDomestic Customers Comprehensive Satisfaction% 96.82Overseas Customers Comprehensive Satisfaction% 98.80
Social performance
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
IndicatorUnit 2024 DataNumber of data security and privacy-related trainingsTime 24Average training duration per person of data security and
privacy-related trainings
Hour 2Coverage rate of data security and privacy training% 89.00Total number of suppliers at the end of the reporting
period
Supplier 2,106Localization rate of suppliers%36.45Number of suppliers with sustainability certi?cationsSupplier 850Proportion of suppliers with sustainability certi?cations%40.36Amount of responsible (green) procurement10,000 RMB1,236,667.83The R&D investment amounted10,000 RMB 80,141.22The R&D investment amounted to operating revenue% 2.80
Number of R&D personnelPerson 1,781The proportion of R&D team members to the total number
of employees
% 16.90Number of Valid Patents Patent 3,933Number of Invention Patents Applied to Core BusinessPatent 981
Number of Software CopyrightsCopyright 98
Total Number of EmployeesPerson 14,655Number of Production Sta?Person 7,410Number of Sales Sta?Person 4,458Number of Technical Sta?Person 1,911Number of Financial Sta?Person 292Number of Administrative Sta?Person 584Number of Employees with High School Education or
Below
Person 9,096Number of Employees with College EducationPerson 2,282Number of Employees with Bachelor's DegreesPerson 3,054
IndicatorUnit 2024 DataNumber of Employees with Master's Degrees or HigherPerson 223
Number of Female EmployeesPerson 6,835Proportion of Employees with Disabilities% 0.50Proportion of Female Executives Among Total Executives% 23.53
Number of Female Senior ManagersPerson 4
Social Insurance Coverage Rate% 100Total Investment in Employee Training10,000 RMB 314.00Average Training Hours per EmployeeHour 24Employee Training Coverage Rate% 100Investment in Employee Work Injury Insurance10,000 RMB 390.00Employee Work Injury Insurance Coverage Rate% 100
Amount of Charitable Donations10,000 RMB 192.00
Number of Volunteer ActivitiesSession 7Employee Participation in Volunteer ActivitiesPerson 969Total Hours of Volunteer ActivitiesHour 2,404
Number of DirectorsPerson 9Number of Independent DirectorsPerson 3Proportion of Independent Directors% 33.33Number of Female DirectorsPerson 2
Proportion of Female Directors% 22.20Number of Female Directors, Supervisors and Senior
Executives
Person 4Proportion of Female Directors, Supervisors and Senior
Executives
% 25.53Number of Shareholders’ General MeetingsTime 4
Governance performanceSocial performance
Social Responsibility
Deepening ESGGovernance CapabilitiesEnvironmentSocial ResponsibilityPerformance TableReport IndexGovernance
ReportPreparation Notes
Chairman’sMessage
About ChanghongMeiling
Materiality Assessment
Deepening ESGGovernance Capabilities
ContentstheGuidelinesReport Preparation NotesT6
Chairman’s Message\
About Changhong Meiling\Materiality AssessmentT5、T11、T52Deepening ESG Governance CapabilitiesT12、T14、T15、T16、T17EnvironmentClimate Change Response
T8、T16、T17、T18、T22、T23、
T24、T25、T26、T27、T28
Environmental Compliance ManagementT33Strengthening Pollution Prevention and ControlT30、T31Strengthening Energy ManagementT35Water Resource UtilizationT36Developing the Circular EconomyT37Ecological and Biodiversity ConservationT32
Advancing Green ManufacturingT20Social ResponsibilityProduct and Service Safety and QualityT47Data Security and Customer Privacy ProtectionT48Win-Win CooperationT45、T46
Innovation-Driven DevelopmentT42、T43
EmployeesT50Social ResponsibilityT39、T40Governance
Corporate Governance MechanismsT9、T53Business Ethics and Anti-CorruptionT55
Anti-Unfair CompetitionT56
Appendix
Performance Table\Report IndexT57
IndicatorUnit 2024 DataNumber of Items Discussed and Reviewed at Shareholders’
General Meetings
Case 34Number of Meetings of the Board of DirectorsTime 15Number of Items Discussed and Reviewed by the Board of DirectorsCase 103
Number of Meetings of the Board of SupervisorsTime 10Number of Topics Reviewed by the Board of SupervisorsCase 41Number of Times a Particular Topic was Not Approved at the Above
Meetings
Time0Amount of 2023 Annual Pro?t Distribution10,000 RMB 3,097.71Proportion of Net Pro?t Attributable to Listed Company
Shareholders
% 41.70IR Interactive ResponsesTime 126
Earnings Brie?ngsTime 1Investor ReceptionsTime 54Investor Hotline Calls ReceivedTime Approximately560Institutional Investor ReceptionsPerson 757Number of Audit Projects for the YearCase 266Total Number of Governance and Compliance Training SessionsSession 5Total Duration of Governance and Compliance TrainingHour 10Total Number of Participants in Governance
and Compliance Training
Person 150Number of Anti-Corruption and Anti-Bribery Training SessionsSession 34
Total Duration of Anti-Commercial Briberyand Anti-Corruption Training
Hour 121Total Number of Employees Participating in Anti-Commercial
Bribery and Anti-Corruption Training
Person 2,068Total Number of Directors Participating in Anti-Commercial Bribery
and Anti-Corruption Training
Person 9Percentage of Directors Participating in Anti-Commercial Bribery
and Anti-Corruption Training
% 100Total Number of Management Participating in Anti-Commercial
Bribery and Anti-Corruption Training
Person 541Percentage of Management Participating in Anti-Commercial
Bribery and Anti-Corruption Training
% 100
Governance performance
Report Index