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华测导航:2024年环境、社会和公司治理(ESG)报告(英文) 下载公告
公告日期:2025-04-25

0102

This report presents the Environmental, Social, and Governance (ESG) disclosures of Shanghai Huace Navigation Technology Ltd. (hereinafter referred toas “CHC Navigation,” “the Company,” or “we”) for our stakeholders. It o?ers a comprehensive overview of our 2024 performance and practices in economic,environmental, social, and corporate governance areas. The purpose of this report is to support clear communication with stakeholders and to systematicallyaddress their expectations and needs.

The reporting period covers January 1, 2024, to December 31, 2024. To enhance comparability and forward-looking relevance, certain sections mayinclude data or information from previous years or anticipated future developments.

The Company a?rms that the content of this report is true, accurate, and complete, with no false statements, misleading information, or materialomissions.

CHC Navigation, the Company, or we refers to Shanghai Huace Navigation Technology Ltd.

This report is available in electronic format for your convenience and can be accessed on the Company's o?cial website. For any questions orfeedback, please contact us via email or phone.Company's o?cial website: www.huace.cn

Email: huace@huace.cn

Tel: 021-64950939This report is published in both Chinese and English. In the event of any discrepancy in interpretation between the two versions, the Chineseversion shall prevail.

This report includes responsibility-related information from Shanghai Huace Navigation Technology Ltd. and its subsidiaries, covering key aspects ofeconomic, social, environmental, and corporate governance. Relevant case studies drawn from the Company and its subsidiaries are also provided.

The information in this report is sourced from o?cial internal documents, statistical reports, and annual reports of Shanghai Huace NavigationTechnology Ltd. The disclosed data reects CHC Navigation’s actual operational performance, supplemented by public government data, nancialrecords, internal statistics, third-party surveys, and evaluator interviews. All nancial data is presented in RMB. In case of discrepancies, the o?cialnancial reports shall prevail.

United Nations Sustainable Development Goals (SDGs)China Corporate Social Responsibility Reporting Guidelines (CASS -ESG 6.0) issued by Chinese Academy of Social SciencesGuidance on Social Responsibility Reporting (GB/T 36001-2015) issued by China National Institute of StandardizationISO 26000: Guidance on Social Responsibility (2010) issued by International Organization for StandardizationSelf-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation) issued byShenzhen Stock Exchange

About This Report

Reporting PeriodReliability Assurance

Abbreviations

Report Access

Reporting scope

Preparation basis

Reporting data

030403

To all stakeholders:

Thanks for your kind attention!As a trendsetter of the times, we deeplyunderstand that the mission andresponsibility of an enterprise have gonefar beyond the traditional businessconcept and deeply integrated into thegrand narrative of social development.We, Shanghai Huace NavigationTechnology Co., Ltd. (“CHC Navigation”),hereby presents this sincere andresponsible 2024 Environmental, Socialand Corporate Governance (ESG)Report to you, and hope to witness withyou the steady steps of CHC Navigationtowards sustainable development, aswell as our e?orts devoted in creating abetter future based on our wisdom andinsights.

The past year marked a pivotal period of embracing change andpursuing innovation-driven development for CHC Navigation.Guided by our vision of “Building an Intelligent World withPrecise Spatiotemporal Information,” we have been committedto the eld of high-precision navigation and positioning. Drivenby technological innovation, we have made unremitting e?orts totackle core technical challenges and expand the boundaries ofproduct applications. From traditional elds such as surveying,digital construction, and emergency monitoring, to emergingsectors like autonomous driving, precision agriculture, and smartcities, our solutions can be found in diverse scenarios. Thesesolutions fuel digital transition across industries, showcasing ourstrong capabilities and commitment to innovation in science andtechnology.

As for the corporate governance, we hold to integrity as afundamental principle to build a solid foundation for businessgrowth.We have established a “three meetings” governance structuresupporting e?cient collaboration upon clearly dened rightsand responsibilities to protect the rights and interests of allshareholders, especially the legitimate rights and interests ofminority shareholders, with scientic decision-making process.Good corporate governance is the ballast stone of an enterprisefor sailing forward steadily, and the key support for resistingrisks and achieving long-term strategic goals. At the sametime, we actively embrace the digital transformation, optimizeorganizational management methods and business processeswith advanced information technology, promote the evolution ofenterprise from scale development to a new stage of high-qualitydevelopment, and maintain superior governance e?ciency toensure high-quality development.Faced with the challenge of global climate change, we activelyembrace the low-carbon concept and foster green transformationwith technology.We strictly control environmental risks in business operationby applying adequate environmental management policies andsystems, and ensure that waste water, waste gas and solid wasteare discharged after treated in compliance with all applicablestandards, to safeguard our clean world. We inject greengenes into the design, research and development stages of ourproducts, ranging from chips and modules to complete systems,devote e?ort to achieving lightweight and low power consumption,help customers reduce their carbon footprint, and contribute CHCNavigation’s wisdom and strength to global climate governance.

On the path of fullling corporate social responsibility, weactively fulll our corporate citizenship based on a deep sense ofresponsibility and mission.We rmly believe that employees are the most valuable asset ofan enterprise, and commit ourselves to creating a fair, inclusiveand humane workplace. To this end, we have established acomplete set of compensation and benets system, providediversied training and personal development opportunities, andstrictly implement occupational health and safety measures, inorder to fully support the growth and development of employees,fully stimulate their creativity and increase their loyalty. At thesame time, we actively participate in public benet work andtake the lead in education support, disaster relief and manyother social good activities. From improving educational equityto participating in emergency rescue, we demonstrate ouraccountability of corporate citizenship through practical actions,and make contribution to social harmony and stability.Looking into the future, CHC Navigation will stick to its originalintention, and put ESG concepts into practice with higherpositioning, wider vision and more practical measures. The wayforward of our Company is a sustainable development path thatresonates with the national development of China, facilitatesand benets from social progress and natural environment in aharmonious manner. The value of an enterprise lies not only increating economic wealth, but also in creating comprehensivevalue for society, safeguarding lucid waters and lush mountainsfor future generations, and contributing to the building of acommunity with a shared future for mankind. We look forwardto working together with all stakeholders to leverage the precisespatiotemporal positioning of CHC Navigation to explore theamazing intelligent world and jointly embark on a promisingjourney to sustainable development.Chairman of CHC NavigationYanping Zhao

Message from the Chairman

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

About CHC Navigation

Company Overview

Main Products and Services

CHC Navigation specializes in research, development, manufacturing, and commercializationof high-precision navigation and positioning technologies. We are a leading company inChina’s high-precision spatiotemporal information industry.Guided by the vision of “Building an Intelligent World with Precise Spatiotemporal Information”,the Company has focused on high-precision navigation and positioning technologies.Over time, it has gradually established two core technological pillars, i.e. a high-precisionpositioning chip technology platform and a global satellite-ground integrated enhancementnetwork service platform. Furthermore, the Company has steadily developed a wide rangeof high-precision navigation and positioning intelligent equipment, systems, and solutions,strengthening its competitiveness across various application areas, including Resources &Utilities, Buildings & Infrastructure, Geospatial, and Robotics & Autonomous driving.We follow an innovation-driven development strategy and place strong emphasis onscientic research. CHC Navigation has been awarded one National Medal of Technologyand Innovation and four State Scientic and Technological Progress Awards and holds over900 intellectual property rights. We have also received the National May 1 Labor Medal andare recognized as a National Enterprise Technology Center. For six consecutive years, wehave been listed among the Top 100 Outstanding Enterprises in Shanghai’s Qingpu District.In 2020, our BeiDou high-precision positioning equipment successfully reached the summitof Mount Everest as part of the Everest Elevation Measurement Project, marking a majormilestone in precision navigation.By the end of the reporting period, CHC Navigation operated 29 provincial-level serviceo?ces across China and had established branches in 10 countries and regions, includingHungary, Japan, and Singapore, serving customers in over 140 countries and regionsworldwide. Our products and solutions are widely used in industries such as naturalresources, construction, transportation, water conservancy, electricity, agriculture,education, and environmental protection. They are also increasingly applied in emergingelds such as smart cities, autonomous driving, and articial intelligence. Looking ahead, wewill continue to invest in research and development, strengthen our competitive advantage,and uphold our customer-rst approach by delivering high-quality products and solutions tomeet the needs of society.

CHC Navigation boasts a diversied product portfolio that encompasses surveying and mapping RTK products, 3D intelligent solutions,marine surveying and mapping equipment, deformation monitoring systems, navigation applications, precision agriculture solutions, anddigital construction technologies. The Company has also developed a high-precision positioning service system that serves a wide rangeof sectors including surveying and mapping, agriculture, geological disaster prevention, water conservancy, mining, emergency response,transportation, ocean, forestry, and electricity. With these strengths, the Company provides high-precision positioning equipment, systemapplications, and solutions to customers across various industries.

CHC Navigation has been awarded1 National Medal of Technologyand Innovation

CHC Navigation operated29 provincial-level service o?cesacross China

ad established branches in10 countries and regions,including Hungary, Japan andSingapore

serving customers in over140 countries and regions worldwide

4 State Scientic andTechnological Progress Awards

holds over900 intellectual property rights.

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

2019

2010200920052003

20182017201620152012

2024

2023202220212020

In October 2018, the HongKong–Zhuhai–Macau Bridgeo?cially opened. We providedsurveying services, bridge surfacepaving solutions, and automateddeformation monitoring for theproject.

In December 2019, we participatedin the Ministry of Natural Resources’Universal Monitoring for GeologicalDisasters project.

In October 2019, we were awarded

the First Prize of the ShanghaiKey Product Quality ResearchAchievement Award.

Our Journey

On September 12, 2003, CHCNavigation was established.

In March 2005, we developed an integrate

dual-frequency RTK system.

In March 2017, we completed our initialpublic o?ering (IPO) and were o?ciallylisted on the ChiNext board of the ShenzhenStock Exchange.

In December 2017, our joint project,

“High-Precision and High-ReliabilityPositioning and Navigation Technology andApplications,” developed in collaborationwith ve companies, was awarded theSecond Prize of National Science andTechnology Progress Award.

In October 2012, we undertook the National

High-tech R&D Program (863 Program)’smajor project—High-Precision PositioningSystem and Application Demonstration.

On May 27, 2020, the Chinese Survey Team reached the

summit of Mount Everest, with our BeiDou high-precisionreceiver being the only domestic BeiDou receiver used for thesummit’s elevation measurements by mountaineering teammembers throughout the expedition.In October 2021, we were honored with the ShanghaiMay 1 Labor Medal.

In April 2022, we were honored with theNational May 1 Labor Medal.In November 2023, the Company'sautomotive-grade integrated productachieved ASPICE Level 2 certication.CHC Navigation celebrated its 20thanniversary.Establish post-doctoral researchstations.

In June 2024, we, along with ve otherentities, participated in the project“Beidou High-Precision Real-TimeFusion Monitoring Technology and MajorEngineering Applications,” which wasawarded the Second Prize of NationalScience and Technology Progress Award.

In November 2021, we, along with six other entities,participated in the project “Key Technologies andLarge-Scale Engineering Applications of Centimeter-Level Specialized Mobile Measurement Equipment,”which was awarded the Second Prize of NationalScience and Technology Progress Award.In October 2022 and February 2022,our two major facilities in Shanghai andWuhan were o?cially launched, markingkey milestones in our operationalexpansion.

In the same year, we launched our “Xuanji” high-precisionbaseband chip, fully developed and protected by ourindependent intellectual property rights.In January 2020, together with six other entities, weparticipated in the project “Beidou Performance Enhancementand Wide-Area Decimeter Satellite-Based AugmentationTechnology and Applications,” which received the Second Prizeof National Science and Technology Progress Award.

In 2015, our self-developed Beidouhigh-precision core board passed areview by six academicians.

In November 2016, our project “Key Technologiesand Applications of Multi-Mode, Multi-FrequencyBeidou High-Precision Boards” won the third prizein the Shanghai Science and Technology Awards.In November 2016, our Beidou receiver i70 wona Silver Award at the China International IndustryFair.In December 2016, our collaborative project,“Key Technologies and Industrialization of BeidouNavigation and Positioning Services”, won theSpecial Prize in the Shanghai Science andTechnology Awards.

In April 2010, we participated in theRound Table Meeting on China-AfricaCooperation in Surveying and Mappingand donated 12 sets of GNSSequipment to African countries.In December 2010, we wererecognized as a Key High-TechEnterprise of the National TorchProgram.

In February 2009, our “Geodetic GPS Dual-Frequency Surveying System” was awardedthe third prize in the Shanghai Science andTechnology Awards.In October 2009, we successfully developedand localized the core motherboard for adual-frequency GPS surveying system.Also in October 2009, our productsaccompanied China’s Antarctic researchteam on its expedition to Antarctica, markingthe rst time a domestic GNSS systemreached the highest point in the Antarcticinterior.

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Join hands with our partners to build a nationwide after-sales service network

featuring the "Partner + CHC Navigation" model

CHC Navigation at World-Class Exhibitions Around the Globe

Achieve success in both sales and reputation

Our Milestones in 2024

In 2024, we moved forward with steady progress, combining collective wisdom and shared strength. United in purpose, weremained focused on quality and continuous improvement, laying a solid foundation for sustained success.

With innovation at the core, we expanded ournetwork, driving technological breakthroughs andenabling their successful application across multipleindustries.

In 2024, we engaged with over 100 universities across China to strengthen communication and collaboration.We supported the National Higher Education Competition for Surveying and Mapping Teaching Innovations andTalent Development, hosted the rst national seminar on Surveying and Mapping Training Room Construction andManagement, and organized four 3D Data Collection and Processing Technology Workshops for university faculty.Beginning in September, our “Intelligent Surveying and Mapping on Campus” initiative reached 57 universities in

20 provinces, helping upgrade training and teaching methods. The program received strong support from higher

education institutions nationwide.

2024 National Higher Education Competition forSurveying and Mapping Teaching Innovations and

Talent Development

Vocational Education Training of Surveying andMapping——3D Data Collection and Processing

Technology Workshop

Our project “Beidou High-Precision Real-Time FusionMonitoring Technology and MajorEngineering Applications” wonthe Second Prize of NationalScience and TechnologyProgress Award.

Our project “Beidou High-Precision Real-Time FusionMonitoring Technology and MajorEngineering Applications” wonthe Second Prize of NationalScience and TechnologyProgress Award.

Dongting Lake Flood Protection andDyke Monitoring

Huangshan Flood FlowMeasurement

Landslide Monitoring in Zhaotong,

Yunnan

National Emergency Drill

Landslide Monitoring in Shanghang,

Fujian

On-Site Inspection of the Once-in-a-century Flood in Guangdong’sBeijiang River

Seminar on Surveying and Mapping Training RoomConstruction and Management

In 2024, amid global changes, we entered a newchapter of international growth. We hosted theInternational Partner Conference, strengtheningrelationships with partners around the world. Wealso accelerated the establishment of overseassubsidiaries, deepening our presence in Asia-Pacic and European markets, while integratingwith local communities to boost market share. Wecontinue to expand our global product portfolio,staying true to our strategy of evolving from local toa global presence.

In 2024, as we maintained our focus on product andtechnological excellence, CHC Navigation receivedbroad recognition from both industry and society,marking a year of signicant achievements. Wewere honored with one national-level award andfour awards at the provincial and ministerial levels.

In 2024, fully aware of our social responsibility, we leveragedour advanced technologies to support disaster relief and rescueoperations across various regions. Through our technical expertise,we contributed to disaster prevention, mitigation, and emergencyresponse in critical situations. From ood protection at Dongting Lake’sTuanzhou Dyke, to supporting relief e?orts during the historic ood inGuangdong’s Beijiang River, conducting ood ow measurements inHuangshan, and providing landslide monitoring in Zhaotong, Yunnan,and Shanghang, Fujian—we stood ready wherever and whenevertechnology was needed most.

Our Products Earned Trust and Recognition, Driving Strong Sales and a Solid Reputation

Building an Open and Collaborative “Partner + CHC Navigation”Ecosystem for Accelerated Growth

Our Strategic Journey to Industry Expansion

Our Journey of Industry-Academia Collaboration

Our Success on the Global Markets

Our Path Marked by Achievement and ProgressOur Path of Embracing Social Responsibility

GNSS RTK sales exceeded 100,000 units for the year.Our automotive-grade products achieved total deliveries exceeding

300,000 units.The CHCNAV unmanned surface vessel smart platform, equipped withADCP and HQ multi-beam integrated solutions, continued to grow itspresence across multiple industries in marine surveying.Our agricultural auto-steering systems surpassed 60,000 units in annualsales.The RS series system, powered by innovative laser SLAM and GNSSfusion technology, played a leading role in advancing industry development.

In 2024, we transformed our marketing approach by building an open,growth-driven “Partner + CHC Navigation” ecosystem. Our partnershipsin many product lines doubled. This expansion unied e?orts acrossRTK, marine, 3D products, and industry solutions, fostering deepercollaboration and creating a positive cycle of mutual benet. At the sametime, we rolled out a series of strategic initiatives and support systems too?er our customers stronger market support and timely, expert technicalservices.

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

1112

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Date

Date

June 2024

July 2024

August 2024

September

2024

October

2024

October2024

November2024

July 2024

Honors & Awards

Honors & Awards

Award Description

Award Description

荣誉证书

荣誉证书Our Corporate Culture

Our Honors and Awards

As a company with vision “Building an IntelligentWorld with Precise Spatiotemporal Information”,we are committed to focusing on the challengesand needs that matter most to our clients,delivering competitive precise spatiotemporalinformation solutions and services, and creatingmaximum value for our clients while activelycontributing to societal progress.

The Second Prize inthe State Scientic andTechnological ProgressAward.

The First Prize of theShanghai Science andTechnology Awards

Top 100 Enterprises inthe 2024 GeographicInformation Industry

CIIFHigh-TechEngineering Awardat the 24th ChinaInternational IndustryFair

China AgriculturalMachinery AnnualTOP50+ ApplicationContribution Award

The Second Prizeof Jiangsu ProvinceScience andTechnology Award

Global Top 100Intelligent ControlSystems Award

The Second Prize in theShanghai Science andTechnology Awards

Included in the Ministryof Water Resources’2024 Catalogue of KeyPromotion and Guidancefor Advanced andPractical Technologies inWater Conservancy

The Acoustic Doppler FlowMeasurement System lightweightunmanned surface vessel wassuccessfully included in the Ministryof Water Resources’ 2024 Catalogueof Key Promotion and Guidance forAdvanced and Practical Technologiesin Water Conservancy.

The project “Beidou High-PrecisionReal-Time Fusion MonitoringTechnology and Major EngineeringApplications” won the Second Prizeof National Science and TechnologyProgress Award.

The project “Key Technologies forSpace Error Processing in NavigationSatellite Precision Positioning andStar-Earth Integration Applications”won the First Prize of the ShanghaiScience and Technology Awards.

We were honored as one of the“Top 100 Enterprises in China’sGeographic Information Industry2024,” steadily climbing the rankingsfrom 10th to 3rd place in recentyears.

The H7 Integrated GNSS MonitoringStation won the CIIF High-TechEngineering Award at the 24th ChinaInternational Industry Fair.

The NX510 Auto-steering Systemwon the “China AgriculturalMachinery Annual TOP50+Application Contribution Award.”

The Complex Scenario BeidouHigh-Precision Spatio-temporalKey Technologies and ApplicationsProject won the Second Prize ofthe Jiangsu Province Science andTechnology Award.

The Digital Construction IntelligentGuidance System won the GlobalTop 100 Intelligent Control Systemsaward.

The projects: High-Precision GNSSPositioning Measurement TheoryInnovation and Key Technologies,Key Technologies and Applicationsof Shanghai 3D Spatial GeographicDigital Base Construction, and theKey Technologies for Space ErrorProcessing in Navigation SatellitePrecision Positioning and Star-Earth Integration Applications wereawarded the Second Prize of theShanghai Science and TechnologyAwards.

VISION

MISSION

CORE VALUES

Building an Intelligent World withPrecise Spatial-Temporal Information

Focusing on the Challenges andNeeds Our Clients Care About

Empowering Clients, Strivingfor Excellence, Self-Criticism,Openness to Growth, Integrity andTrust, Teamwork.Focusing on the Challenges andNDelivering Competitive, PreciseSpatial-Temporal InformationSolutions and ServicesConstantly Creating MaximumValue for Our Clients

Our Corporate

Values

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

?Sustainable Management

Stakeholder Identication and Communication

CHC Navigation attaches great importance to the identication and management of key ESG topics. To proactively respond to theconcerns of stakeholders, the Company has been dedicated to improving the processes for identifying and validating social responsibilitytopics, enhancing stakeholder communication and research, optimizing topic evaluation methods, and developing a matrix of materialtopics. These topics are disclosed in the report to meet the expectations of stakeholders.

Governance Topics

Social Topics

Environmental Topics

Corporate governance, investor relations management, anti-corruption and integrity, internal controlof risks, information security

Innovation in scientic research, quality control, high-quality services, employee development,industry collaboration, and public welfare

Environmental management, green operations, and tackling climate change

Stakeholder IdenticationExpectations and ConcernsCommunication and Response

Shareholders

Governmentand RegulatoryAuthorities

Customers

Employees

Industries

Communityand the Public

Lawful and compliant operationsAdequate information disclosureProtection of shareholder rights and interestsInvestor relations managementAdherence to business ethicsLawful and compliant operationsAnti-corruptionInternal controlCompliance with regulatory requirements

High-quality productsAftersales servicePrivacy protection

Compensation and benetsProtection of employee rights and interestsEmployee training and career developmentEmployee health and safety

Supplier managementJoint advancement of industriesIndustry cooperation

Social welfare

Participation in community activitiesDisaster relief support

Supplier management systemParticipation in industry activitiesContribution to drafting documents

Innovative R&DHigh-quality customer serviceInformation security management

Rights and interests and their protectionCompensation management and incentivesTraining programsDemocratic managementOccupational health management

Internal control managementInformation disclosureDiverse investor communicationIntellectual property managementFair competitionInternal control managementInformation disclosureDiverse investor communicationIntellectual property managementFair competition

ESG Governance

1516

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Integrity at our Core,Leading the Way with Smart NavigationAt CHC Navigation, we operate with the principle of “Integrity at Our Core, Leading theWay with Smart Navigation.” We have built a modern corporate governance model,featuring a collaborative system led by the Company’s three key governing bodies.This structure enhances governance e?ectiveness through clear organizationalroles and science-based decision-making. In investor relations, we’ve developeda comprehensive, multi-layered communication system, steadily increasing ourvisibility and recognition in the capital markets. We have also established a long-termanti-corruption framework and implemented comprehensive integrity monitoring,laying a strong governance foundation to support our vision of becoming a globalleader in navigation and positioning solutions.Corporate GovernanceInvestor Relations ManagementInternal ControlsBusiness EthicsInformation Security

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

EMT

Human ResourcesDepartment

Finance Department

Legal Department

Administration

Department

Product & R&D CenterSupply Chain CenterMarketing Center

Quality &Process IT Department

Strategic DevelopmentDepartment

Product Lines

Corporate Governance

Governance by the Three Key Bodies

We strictly follow relevant laws, regulations, and guidelines, such as the Company Law of the People’s Republic of China, the SecuritiesLaw of the People’s Republic of China, the Rules Governing the Listing of Shares on the ChiNext Market of Shenzhen Stock Exchange,and the Self-Regulatory Guidelines No. 2 for Standardized Operations for ChiNext Listed Companies. We continuously enhance ourcorporate governance structure by building robust internal management and control systems. Our governance framework clearly denesthe roles and responsibilities of rights organizations, decision-making bodies, supervisory bodies, and management—ensuring checksand balances, informed decision-making, and coordinated operations. The General Meeting of Shareholders, Board of Directors, andBoard of Supervisors operate in accordance with regulatory standards. Independent directors and specialized committees actively fullltheir duties. We are committed to promoting standardized, transparent operations and continuously improving our corporate governancepractices.

We have established a governance structure composed of the General Meeting of Shareholders, the Board of Directors, and theBoard of Supervisors. The General Meeting operates on the principle of equality, safeguarding the legal rights of all shareholders,with special attention to minority shareholders. The Board of Directors is formed through standardized procedures and supportedby well-dened internal management systems, ensuring sound decision-making and responsible execution of duties. The Board ofSupervisors exercises its oversight independently and in accordance with the law, monitoring key decisions, nancial performance,and the conduct of senior executives. This governance model provides a solid institutional foundation for corporate governance,supporting stable development and the long-term protection of shareholder interests.

In line with the Company Law of the People’s Republic of China, the Rules Governing theListing of Shares on the ChiNext Market of Shenzhen Stock Exchange and our Articles ofAssociation, we follow standardized procedures for convening and conducting shareholdermeetings, including voting and related processes. We uphold the principle of equality,ensuring that all shareholders, especially small and medium-sized ones, have the opportunityto fully exercise their rights. This guarantees the legality and e?ectiveness of decisions madeat the General Meeting of Shareholders and protects shareholder interests.We strictly follow the procedures set out in the Company Law of the People’s Republic ofChina and our Articles of Association to elect directors. The number and composition of theBoard meet all legal and regulatory requirements. We have also established a comprehensiveinternal management system that clearly denes the responsibilities and authority of theBoard of Directors. This ensures that all directors attend Board and Shareholder meetingswith a responsible attitude, diligently fullling their duties to protect the overall interests ofthe Company.The Board of Supervisors of the Company is elected in strict accordance with the CompanyLaw of the People’s Republic of China and our Articles of Association. The number andcomposition of the Supervisors meet all legal and regulatory requirements. The proceduresfor convening and holding Supervisory meetings of the Company comply with relatedregulations of the Rules of Procedure for the Board of Supervisors. All Supervisors activelyfulll their supervisory duties, independently overseeing major corporate matters, nancialconditions, and the performance of directors and senior executives to ensure legality andcompliance.

Our Board of Directors consists of seven members—one female andsix male—with diverse academic and professional backgrounds inbusiness management, accounting, and law. This diversity bringsa broad range of perspectives, enhancing the quality and depth ofdecision-making. We have also implemented Independent DirectorWork Guidelines to ensure that independent directors carry outtheir responsibilities impartially, with a focus on protecting theoverall interests of the Company, especially the rights of minorityshareholders. This system supports both the independence andobjectivity of our governance process.

Our Board of Directorsconsists of seven members1 female

and

6 male

General Meetingof Shareholders

Board ofDirectors

Board ofSupervisors

Corporate Structure

Board of Directors

Audit Department

Board Diversity

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Our Internal Control Management System

Investor Relations ManagementInternal Control

Internal Control Management

Tax Management

We place a high priority on managing information disclosure and investor relations, fully complying with relevant laws, regulations, andour company’s articles of association. We have implemented the Information Disclosure Management System and the Investor RelationsManagement System. These systems standardize our disclosure practices, strengthen management processes, protect investors’ legalrights, and clearly outline the principles, responsibilities, and communication methods for managing investor relations. This enhancescorporate governance, safeguards investors’ interests, and provides institutional support for the Company’s sustainable growth.

We view the enhancement of our governance system as a key pillar of sustainable development. By strengthening our internal controlmechanisms, we aim to improve both operational management and risk prevention capabilities. We have established a comprehensiveinternal control system and implemented standardized management policies to ensure all business activities are legal, compliant,and secure, with accurate and reliable nancial information. We strictly comply with tax laws and regulations, maintain a sound taxmanagement system, standardize tax ling procedures, and provide employee tax training to e?ectively manage tax risks and protectthe Company’s reputation. In addition, we continue to enhance our nancial management system to ensure the quality of nancial dataand protect the legitimate rights of the Company, shareholders, and creditors.We strictly follow relevant laws, regulations, and guidelines, such as the Company Law of the People’s Republic of China, theSecurities Law of the People’s Republic of China, the Rules Governing the Listing of Shares on the ChiNext Market of Shenzhen StockExchange, and the Self-Regulatory Guidelines No. 2 for Standardized Operations for ChiNext Listed Companies. We continuouslyenhance our corporate governance structure by building robust internal management and control systems. Our governance frameworkclearly denes the roles and responsibilities of rights organizations, decision-making bodies, supervisory bodies, and management—ensuring checks and balances, informed decision-making, and coordinated operations. The General Meeting of Shareholders, Boardof Directors, and Board of Supervisors operate in accordance with regulatory standards. Independent directors and specializedcommittees actively fulll their duties. We are committed to promoting standardized, transparent operations and continuously improvingour corporate governance practices.

Establish and improve business processes and related regulatory requirements to ensure that ourinternal control and risk management cover the key aspects of our operational activities.Strengthen cost accounting analysis, promote technological innovation, and conduct regularinspections and evaluations; implement comprehensive budget management to ensure the rationaluse of funds; improve the monitoring of funds to ensure nancial security.Implement a robust information security system to protect critical data and systems. Manageand control the development and changes of information systems to ensure system stability andfunctionality.

Ensure compliance with laws, regulations, and industry standards, maintaining legal and ethicalbusiness practices. Provide regular compliance training to enhance employee awareness.

We fully comply with tax laws and regulations to ensure the legality and compliance of our tax activities. We ensure timely, accurate,and complete tax lings and payments, and cooperate with tax authorities during audits and investigations by providing the requiredinformation. We have clearly designated responsible parties and established workows for tax management to ensure smooth taxlings and payments. Additionally, we prioritize tax education for our employees, raising awareness of tax laws to ensure that theyact in accordance with the law during the tax process, minimizing the risk of tax issues caused by individual actions. In short, wecontinuously enhance our management practices in tax compliance, improve our tax management, strengthen internal controls, andmitigate tax risks.

Enhance processand systemmanagementOptimize cost,budget, andnancial controls

Improveinformation ow

Focus oncomplianceIn 2024, we actively conducted investor relations activities through multiple channels, including performance briengs, targetedinvestor meetings, o?ine investor reception days following regular report releases, conference calls, and responses viaHudongyi, the Shenzhen Stock Exchange’s online interactive platform. During the reporting period, we responded to 86 inquirieson Hudongyi and welcomed 265 investor visits during our o?ine reception days.we responded to86 inquiries on Hudongyi

A total of302 investor interactions wereconducted through investor reception days,conference calls, and other channels

Case StudyAdvancing Investor Relations Management and Enhancing Transparency

Communication Channelswith InvestorsAnnouncements

Shareholders’Meetings

ComplianceEqualityProactivityIntegrity and

Honesty

PerformanceBriengs

One-on-OneMeetings

PhoneInquiries

MailingMaterials

Advertising andMedia Promotion

Roadshows

On-SiteVisits

CompanyWebsite

Key Principles of InvestorRelations ManagementOur Communication Channels with Investors

Key Principles of Investor Relations Management

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Anti-Fraud Organizational Structure and Responsibilities

Financial Management Key Focus Areas

Financial ManagementIn accordance with the Company Law of the People’s Republic of China and other relevant regulations, tailored to our company’s specicneeds, we have established a Financial Management System to strengthen nancial management and economic accounting, whilesafeguarding the legitimate rights of the Company, shareholders, and creditors.

In accordance with the Company Law of the People’s Republic of China, the Insurance Law of the People’s Republic of China, theInternal Control Standards for Insurance Companies, the Basic Standards for Internal Control of Enterprises, and the Insurance AuditGuidelines, we have developed our Anti-Fraud Management Measures to prevent and resolve fraud risks, standardize businesspractices, protect shareholder rights, and ensure that the Company achieves its operational goals while maintaining sustainable,stable, and healthy growth.

We view business ethics as a core pillar of sustainable growth, and we are committed to fostering an environment that is honest,transparent, and responsible. We have established a comprehensive anti-fraud management system that covers the full process—fromrisk prevention and detection to response and recovery after an incident. To reinforce ethical conduct, we regularly conduct businessethics training to raise employee awareness of compliance, ensuring that all activities align with legal standards and industry regulations.In all interactions with clients, suppliers, and competitors, we strictly comply with anti-monopoly laws and fair competition regulations. Werequire all employees to uphold high ethical standards and avoid any form of unfair competition. By continuously enhancing our businessethics management system, we e?ectively reduce operational risks, strengthen compliance practices, and support the long-term, stabledevelopment of the Company.

We strictly adhere to anti-corruption and anti-bribery laws, recognizing integrity as a fundamental pillar of our sustainable development.We have established a robust anti-fraud management system and implemented our Anti-Fraud Management Measures, which clearlydene roles and responsibilities to e?ectively prevent and address fraud risks, protect shareholder interests, and support stable businessgrowth. We maintain a zero-tolerance policy toward corruption and bribery, enforce a comprehensive Business Ethics and Anti-CorruptionPolicy, and operate a whistleblower protection system that encourages employees to report violations. These e?orts help us continuouslystrengthen compliance awareness across the Company.

During the reporting period, there was0 instance of employees being dismissed (or disciplined), investigated by authorities, or havingcontracts with business partners terminated or not renewed due to commercial bribery or embezzlement.During the reporting period, there was0 lawsuit involving the Company, its directors, management, or employees related to commercial

bribery or embezzlement.

Key Achievements

Financial Management

Finance Business

Partner (FBP)

Financial Accounting

Management

FundsManagement

Tax Management

OperationsManagement

Anti-fraud organizationalstructure and responsibilities

Board of Directors, Executive

O?ce, corporate functionaldepartments, and subsidiaries

As the unit responsible

for anti-fraud e?orts

In 2024, CHC Navigation launched a series of integrity-focused initiatives, including “Say NO to False Reimbursement,”the “Seven Principles of Self-Discipline,” and Integrity Campaigns during the New Year, Spring Festival, and Mid-AutumnFestival. We also held Domestic and International Integrity Briengs for both suppliers and employees during major holidays.These initiatives reect CHCNAV’s core value of “Integrity and Trust,” setting a benchmark for clean governance withinthe industry and laying a strong ethical foundation for building a globally competitive enterprise. They also support thedevelopment of a long-term integrity mechanism of “dare not corrupt, cannot corrupt, do not want to corrupt,” helping drivethe Company toward high-quality, sustainable growth.

Establish anti-fraudpolicies, manage fraudreporting, and overseeinvestigations into fraudcases

In accordance withCHCNAV’s anti-fraudrequirements, developand continuously improvemanagement systemsand procedures for eachdepartment, and designatepersonnel to oversee anti-fraud activities.

Ensure compliance withlaws, regulations, andcompany policies. Anysuspected fraud should bereported through properchannels to the Legal orAudit Department.

Legal & Compliance andAudit Departments

Companydepartments andsubsidiaries

All employees

Business Ethics

Integrity Building

Anti-Fraud Management

Case StudyTo strengthen integrity and self-discipline, CHCNAV held various integrity awareness activities

“Seven Principles of Self-Discipline” Promotional Activity

New Year IntegrityCampaign

Mid-Autumn FestivalIntegrity Campaign

2324

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Reporting Mechanism for Corruption and Bribery

Whistleblower Protection Policy

Information Security Management Principles

Security-DrivenPrinciple

Leadership Accountability

Company-Wide

Participation

Legal Compliance

Use of Proven Technologies

BalancingManagement andTechnology

Continuous Improvement

Business Ethics and Anti-CorruptionWe are committed to doing our business with integrity, maintaining high standards of honesty, compliance, fairness, and transparency. Wehave a zero-tolerance policy towards corruption and bribery. Our Business Ethics and Anti-Corruption Policy focuses on four key areas:

risk prevention, risk identication, risk response, and post-incident recovery. It ensures that all employees comply with laws, regulations,and our internal policies when interacting with government agencies and business partners, and in their day-to-day operations. We strictlyprohibit any form of corruption, bribery, or commercial bribery, and continuously work to enhance our business ethics management system.

All employees are expected to respect the rights of customers, suppliers, and competitors, and to engage in fair, honest, and transparentbusiness practices. Employees are strictly prohibited from exploiting others through manipulation, concealment, misuse of privilegedinformation, distortion of facts, or any other unlawful conduct. We ensure that all interactions with suppliers, customers, competitors, andgovernment entities reect fair and lawful business practices, in full compliance with competition laws and regulations in the countries andregions where we operate.We require all employees to follow these core principles when interacting with customers, suppliers, competitors, and other stakeholders:

1. Fully respect the legal rights of all parties and adhere to the principle of fair trade. 2. Strictly prohibit any form of unethical business

behavior, including but not limited to information manipulation, abuse of privileges, and distortion of facts. 3. Ensure all business activitiesalign with internationally recognized fair competition standards and comply with competition laws in the countries and regions where weoperate, supporting a sustainable and equitable business environment for all.

Reporting phone number;Reporting email address;Departmentresponsible for handling reports;Mailing addressWhistleblowers should provide information about the individualbeing reported as much as possible, such as their name,department, job title, details of the fraudulent or unethical behavior,and any supporting evidence.If there are any discrepancies in the information provided by thewhistleblower, no liability will fall on them. If a report is madeanonymously and is conrmed to be accurate and meets thenecessary criteria, a reward may be o?ered.We are committed to protecting employees who make honestreports of violations or suspected violations of this policy, ensuringthat they are shielded from any form of retaliation.

During the reporting period, there was0 instance of lawsuits or signicant administrative penalties due to unfair competition.

ReportingMechanism

Complaint andReportingchannelsKey Elements forE?ectiveReportingWhistleblower RewardsWhistleblower Protection

WhistleblowerProtection

We prohibit disclosing the whistleblower's name,department, address, or any personalinformation.

To fully align with national information securitypolicies and classication requirements, wehave specially developed the InformationSecurity Policy and Strategy to enhance ourcompany’s information security management.This policy outlines the goals, principles,and implementation steps for managinginformation security, with the aim of buildinga comprehensive, multi-layered informationsecurity system. We have established astrong information security managementframework, strengthened data classicationand management, and implemented strictaccess controls and encryption technologiesto ensure both the e?cient operation ofinformation systems and the protection of data.We also provide regular information securitytraining to all employees to raise awarenessand improve risk prevention skills, fostering aculture of security across the Company.Additionally, to mitigate potential informationsecurity risks from third-party partners,personnel, and systems, we haveimplemented the Third-Party SecurityManagement Guidelines, which dene third-party entry standards, security responsibilities,and oversight requirements. This strengthensthe security management of our externalpartners and ensures the overall integrity andsustainability of our company’s informationsecurity.We also forbid sharing any materials related to thewhistleblower, including the report, withthe personbeing investigated, their department, or unrelatedparties.

Maximize the protection of information systems’ integrity, condentiality, and availability from threats.Ensure that the frequency of major information security incidents (Level II) remains as low as possible, with a target of

incident per year.

Information Security

Fair Competition

Key Achievements

Information Security Management Goals

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

“PDCA”InformationSecurityManagementModel

Responsibilities of theLeadership Team

Responsibilities of theWorking Group

P (Plan)–Planning D (Do)–Implementation

A (Action)–ResponseC (Check)–Monitoring

Information Security Management Team Responsibilities

Management SystemManagement Team

We have successfully achieved ISO 27001 certication for our Information Security Management System, creating a framework that meetsinternational standards to ensure the security of data throughout its collection, storage, transmission, and processing. Through regularinternal audits, third-party assessments, and vulnerability scans, we quickly identify and address potential security risks, continuouslyoptimizing our data security management processes.

We have established key policy documents, including the Information Security Leadership Team Structure and Responsibilities,Authorization and Approval Management System, and Security Inspection and Audit Management System, to clearly dene theroles and responsibilities of our information security sta?. This ensures that our information security strategy is e?ectively developed,implemented, and overseen, ensuring the continuous operation of the information security management system. Our informationsecurity team consists of a 14-person leadership group and a 6-person working group, who manage the development and operationof the information security management system together.

It is responsible for reviewing and approving the overall planning, budget, technicalstandards, management norms, and related policies for information security constructionand application.It makes decisions on major matters related to the development of the informationsecurity system and oversees the implementation of the information security framework.It resolves decision-making issues promptly in the project construction process andprovides guidance on all tasks.It approves and issues information security policies and the management system.It approves information security plans and project approvals.It ensures the availability of resources for information security.It is responsible for reviewing and promoting information security strategies.It establishes communication channels with internal and external experts, authoritativeorganizations, partners, and suppliers, and manages external information release andannouncements in a unied manner.

It is responsible for the implementation and advancement of the information securitysystem, regularly communicating with and reporting to the working group leader onrelevant matters.It coordinates and communicates with consulting companies regarding projectimplementation and the progress of projects in the Company, ensuring smooth knowledgetransfer.It is responsible for establishing the security management system and supervising theexecution of information security management policies.It plans and oversees information security-related projects, ensuring the e?ectiveimplementation of information security risk assessments and management.It develops the annual review plan, determining the scope of reviews and internal auditcontent.It is responsible for drafting, reviewing, and promoting information security strategies,standards, processes, and regulations.It creates a business continuity plan.It establishes communication channels with internal and external experts, authoritativeorganizations, and stakeholders, managing external information releases andannouncements in a unied manner.

Our information security management framework is based on the ISO 27001 standard, tailored to our specic needs. We use the “PDCA”(Plan-Do-Check-Act) model for ongoing improvements, ensuring the system’s comprehensiveness, e?ectiveness, and adaptability,providing a strong security foundation for the continued growth of our business.

It involves setting clear informationsecurity goals and strategies, providingguidance for the overall securitymanagement across the Company.

This covers the management

requirements for daily information security

tasks, including organizing security teams,

managing personnel, securing systems,

handling operations, and overseeing asset

protection.

It involves addressing security incidents

and emergencies, analyzing issues, and

developing new policies and controls to

maintain the e?ectiveness and relevance

of the security system.It focuses on continuous improvementthrough activities like risk assessments,audits, and security reviews, ensuring thatthe information security system evolvesand improves.

ISO 27001 Certication for Information Security Management System

Key Achievements

2728

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

华测导航环境、社会和公司治理报告

Information Security Training Methods

Intranet Information Security Awareness Campaign

Emergency Management

Awareness Campaign and Training

We have created a comprehensive emergency management system, which includes policies like the Monitoring and Security ManagementCenter Guidelines, Network Security Management Policy, System Security Management Policy, Security Incident Reporting and Response,Storage Media Management Policy, and Information System Emergency Response Plan. These documents are regularly updated toensure a systematic and organized approach to managing information security, reducing risks, minimizing losses, and keeping businessoperations running smoothly.On the technical side, we have built a full-scale information security protection system that includes security defense strategies, employeeaccess controls, log analysis management, server rewalls, and a security awareness platform. These measures help reduce the risk ofinformation system failures and ensure quick responses to emergencies, minimizing any potential impact on business operations.

This refers to training conducted in the Company, provided either by internal sta? or external instructors.

This refers to public courses or specialized programs (including seminars, lectures, etc.) held outside the Company, which are arrangedbased on the training plan and employee development needs.

In-house Training

External Training

To ensure e?ective implementation of our information security management, we have developed the Information System PersonnelManagement System and the Information Security Training Management System. These systems help maintain high professionalstandards and skill levels among sta? working with sensitive information, reducing the risks of errors, fraud, and misuse of resources,while safeguarding information condentiality, integrity, and availability.We regularly conduct privacy protection training to strengthen employees’ understanding and capabilities in data privacy and protection.This training covers topics like privacy policy interpretation, data classication, and privacy risk identication, ensuring that all sta? adhereto privacy protection standards in their everyday work and build a solid foundation for data security.We also o?er specialized training for middle and senior management, helping them understand the importance of the information securitymanagement system and ensuring their full support for its implementation. This support is critical for the smooth progress of the system. Atthe start of each year, we create a training plan based on our needs, ensuring that every employee receives at least one basic informationsecurity management training session. Afterward, we assess the e?ectiveness of the training through testing to ensure knowledgeretention and skill improvement.

2930

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Innovation-Driven Development,Creating Value with IntelligenceAt CHC Navigation, our vision is to “Build an Intelligent World with Precise Spatio-temporal Information,” driven by technological innovation. We specialize in high-precision positioning and provide accurate, reliable, and intelligent solutions tousers worldwide. We continually advance our core technologies, support thedigital transformation of the industry, explore new applications, and strive to build acomprehensive high-precision positioning ecosystem.

Innovation-DrivenIntellectual Property ProtectionProduct Quality

3132

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Innovation-Driven DevelopmentCHC Navigation has adhered to research and innovation as its core driving force. In line with our innovation-driven approach, we havebuilt a multi-layered technology framework and a global R&D system, forming an ecosystem that supports core technology development,international collaboration, and specialized talent cultivation. We focus on applying cutting-edge technologies while incorporating greendesign principles into product development, promoting a shift toward e?ciency and low-carbon solutions across the industry. We alsopromote industry-academia-research collaboration, partnering with universities and research institutions to accelerate the commercializationand implementation of technological breakthroughs. Throughout our innovation journey, we stay committed to technology ethics and socialresponsibility, ensuring that our progress supports sustainable development and delivers long-term value to society.

We have established a three-tier architecture based on the Integrated Product Development (IPD) system, clearly dening businesslayers and focusing on enhancing product competitiveness and technical platform capabilities. Guided by a well-dened R&D strategyand technology roadmap, we rely on a highly skilled R&D team to support our global expansion. In 2024, we launched a comprehensiveorganizational transformation, aimed at dening new business rules, establishing unied language standards, and designing solutionframeworks. These e?orts have already brought improvements in product portfolio management and quality control, further enhancingthe e?ciency and collaboration of our R&D system.

Built on core high-precision navigation and positioning technologies, the Company has established two fundamental platforms, namelya high-precision positioning chip technology platform and a global satellite-ground integrated enhancement network service platform.It has also developed four major application sectors comprising Resources & Utilities, Buildings & Infrastructure, Geospatial, andRobotics & Autonomous driving. These application sectors span industries such as agriculture, construction surveying and mapping,and autonomous driving, o?ering precise positioning solutions while continuously strengthening technological barriers and marketcompetitiveness.

During the reporting period, our total R&D investment reached RMB

469.0191million, accounting for

14.43% of our total revenue.

Our self-developed products have received numerous honors, including the National Technology Invention Award (SecondPrize),

National Science and Technology Awards (Second Prize),

provincial and ministerial-level awards, and

Silver Awards at the China International Industry Fair. We have also earned several prestigious industry accolades, such asthe Special Award for Excellence in Satellite Navigation and Positioning Engineering and Products.

Key Achievements

Key Achievements

Innovation-Related Awards

R&D System

R&D Strategy

Core High-Precision Navigation and Positioning Technologies

2 Platforms

Application

Sectors

Resources & UtilitiesBuildings & Infrastructure GeospatialRobotics & Autonomous drivingHigh-Precision Positioning Chip

Technology PlatformGlobal Satellite-GroundIntegrated Enhancement Network

Service Platform

Two Fundamental PlatformsFour Application Sectors

GNSS chip,boards, modules, andantennas

Core Products

SWAS wide-area augmentationalgorithm and global satellite-groundintegrated enhancement networkservice platformTechnical Support

Independently controllable, low cost,low power consumption, and highperformance

Technical Advantages

Provide global customers with precise,reliable, and secure positioningenhancement services and solutions

Objectives

Continuously improve chip technologyand enhance competitivenessObjectives

High-Precision Positioning Chip

Technology Platform

Global Satellite-Ground IntegratedEnhancement Network Service Platform

Resources & Utilities(Agriculture, Forestry, and Public Utilities)Buildings & Infrastructure

(Surveying, Construction, Operation &

Maintenance)

Geospatial

(UAV aerial surveying, LiDAR mobile

mapping, and unmanned surface

vessel water exploration)

Robotics & Autonomous driving(High-precision positioning for passengervehicles and positioning and navigation

for intelligent robots)

3334

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Technology Strategy

R&D Team

International Expansion

As a leader in high-precision satellite navigation and positioning, we are dedicated to BeiDou’s high-precision spatiotemporal intelligentinformation. Our primary focus is on areas such as integrated PNT,chip modules and terminals, space-ground-sea intelligent perceptionsystems, and autonomous robots for automated tasks. We actively engage in the “Explorer Program” of the Science and TechnologyCommission of Shanghai Municipality (STCSM), partnering with research institutions to drive innovation. Additionally, we are increasinginvestments in R&D in AI, industrial robotics, and multi-source integrated navigation and positioning technologies, aiming to push forwardscientic breakthroughs, support industry innovation, and tackle future technological challenges.

Our products are designed with a strong focus on stability, reliability, and user-friendliness. By continuously enhancing our multi-sensor fusion technologies andalgorithms, we deliver highly e?cient solutions—from chips to modules and completesystems—while optimizing for lightweight design and low power consumption. Ourcore technologies are highly adaptable, meeting the needs of various industries.We also prioritize sustainable design, rening hardware and algorithms to reduceresource usage and achieve a balance between performance and energy e?ciency.

We specialize in the development and application of BeiDou high-precision satellite navigation and positioning technology, building acomprehensive system that spans 2D to 3D and integrates space, ground, air, and sea operations. Our core technologies are widelyapplied in traditional industries such as surveying and land management, as well as in emerging sectors like smart cities, autonomousdriving, and articial intelligence. We have established four key application areas: Resources & Utilities, Buildings & Infrastructure,Geospatial, and Robotics & Autonomous driving, forming a complete product and solution ecosystem.

We are committed to the principles of green design, making environmental protection a core focus in our product development.During the design and manufacturing process, we carefully select RoHS-compliant raw materials, ensuring our products are freefrom harmful substances and have a minimal environmental impact. Our products are also certied by recognized authorities, earningenvironmental certications that reect our dedication to combining technological innovation with sustainable, eco-friendly practices.

Space-ground-sea Intelligent

PerceptionSystems

Autono1olsRobots forAutomatedTasksChip Modulesand TerminalsIntegrated PNT

Our R&D team comprises nearly 700 skilled professionals, most of whom hold PhDs or master’s degrees in disciplines such as satellitenavigation, computer science and technology, and mechanical engineering. With deep technical expertise and a strong focus on innovation,our team is recognized for its industry leadership and holds a high level of international expertise. This solid foundation enables us toremain at the forefront of technological innovation and product development.

As part of our international strategy, we have established an R&D center in the UK dedicated to GNSS technology innovation. The centercollaborates closely with leading UK universities to develop e?cient, cutting-edge GNSS solutions, enhancing the performance andreliability of high-precision positioning systems. Our research focuses on data analysis, algorithm optimization, and the advancement ofexisting technologies to deliver more advanced and dependable positioning solutions.

Technology Strategy

R&D and Applications

Core Technology Applications

Green Design

Key Honors

Type II Environmental Label Product Certication

3536

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

over

10master’s students

we have1employee rated as Shanghai Outstanding Talent

1Industry Leader

member of the ShanghaiLeading Talent Program ofEastern Talent Plan

Top Talent from the QingfengTalent Program

member of the EasternYouth Talent Project

Approximately270 individualshave been grantedShanghai householdregistration (hukou)through the city's talentattraction policies

we have jointly trained

1doctoral student

Case Study

Developing the H7 integrated GNSS monitoring station with built-in power supply, achievingbreakthroughs in energy e?ciency through low-power technologyFocusing on green design, the Company adopted a sleep-wake mechanism forenergy-saving management during the research and development of the H7integrated GNSS monitoring station with built-in power supply. The facility utilizesa low-power NB-IoT narrowband communication solution, replacing traditionalhigh-power 2G/3G/4G networks to further reduce energy consumption. The powerconsumption of the H7 station is controlled within 2W, achieving an industry-leadingstandard and signicantly outperforming similar products on the market. Equippedwith a built-in solar power system, the H7 station reduces reliance on conventionalenergy sources and helps minimize environmental pollution. Its green design notonly enhances energy e?ciency but also provides sustainable technical support forsuch elds as geological disaster monitoring and tra?c safety, o?ering remarkableenvironmental benets and application value.

We maintain close partnerships with universities and research institutions, establishing post-doctoral research stations and academicexpert workstations to create an integrated industry–academia–research collaboration platform. This accelerates the transformation ofacademic research into practical technologies. Through skill master and chief technician workshops, we manage projects that convertacademic ndings into product innovations. Our experienced technical teams play a key role in turning theoretical research into market-ready solutions, enhancing our technological competitiveness and ability to respond to market needs.

We adhere to scientic ethics throughout our product development process, with a focus on high-precision navigation and positioningtechnologies and their related products and solutions. By addressing real-world industry needs, we apply intelligent technologies tomodernize traditional workows, enhance operational e?ciency, and deliver tangible value to our clients. At present, our technologydevelopment and implementation do not involve any ethical concerns related to human safety decision-making or human-machineinteraction.

We are actively committed to nurturing talent through strong industry-university partnerships. We have established joint trainingprograms with China’s top-tier institutions such as Shanghai Jiao Tong University and Tongji University, aimed at cultivating master’sand doctoral students whose professional and practical skills closely align with our Company’s needs. Additionally, we implement amulti-tiered talent recruitment strategy to build a competitive and diverse talent pool, supporting the Company’s long-term growth andsustainable success.

Shanghai Jiao Tong University–CHC Navigation 2024 Joint Excellent Engineer Training Program Launch and 2023 Student Internship Welcome Event

Recruited 2 postdoctoral researchers.Recruit3-5 postdoctoral researchers in 2025

Invited professors from top universities such as Shanghai Jiao Tong University, Tongji University,and Wuhan University to serve as distinguished expertsDevelop research and development plans, dene research topics, and provide guidance forpostdoctoral researchers and students

PostdoctoralResearch Station

Academician andExpert Workstation

During the reporting period, we launched4 industry-university collaboration projects under the STCSM Explorer Program.

Industry-Academia-Research Collaboration

Key Achievements

Research Workstation

Adherence to Scientic Ethics

H7 integrated GNSS monitoring station with

built-in power supply

3738

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Intellectual Property ProtectionAt CHC Navigation, we place great emphasis on intellectual property protection and innovation-driven development, having successfullyobtained a wide range of intellectual property rights. To foster innovation, we implement an intellectual property incentive system thatencourages our R&D teams to continuously overcome technical challenges. Additionally, we prioritize the protection and management ofintellectual property by regularly o?ering training and awareness programs to educate our employees on intellectual property laws andregulations, enhance condentiality awareness, and ensure that our technological innovations are e?ectively safeguarded.

In addition to intellectual property incentives, we have developed a timely incentive program for our R&D center. This program coversvarious types of rewards, including quality performance bonuses, value-driven rewards, knowledge contribution awards, and processoptimization prizes, ensuring that employees’ innovative achievements in di?erent areas are recognized and rewarded. Every quarter,we recognize outstanding performers based on their contributions and reward them accordingly. This helps boost the team’s creativityand drives continuous progress in our R&D e?orts.Quarterly Star

Recognizing topperformers eachquarter.

Value-DrivenRewardemployeeswhose ideas orsuggestions areadopted.

Timely Incentiveof QualityFor notableimprovements inquality, e?ciency,and process, aswell as e?ectiveuse of tools,successfulimplementationof improvementsand full teaminvolvement.

Experience/SkillSharingFor valuablecontributionsthrough technicalexchanges andskill training.

KnowledgeContribution AwardFor teams orindividuals whoexcel in buildingdepartmentalknowledge bases.

ProcessOptimizationAwardFor impactfulprocessimprovementsand optimizations.

To support ongoing innovation and technological progress, we have established a robust incentive system to motivate our scientic andtechnical personnel. This includes both intellectual property rewards and timely incentives from our R&D center. The implementationof these measures not only boosts the Company’s ability to attract and retain top talents but also enhances the overall expertise of ourtechnical sta?, fueling continuous innovation and contributing to the long-term growth of the Company.

As an innovation-focused company, we place great importance on intellectual property protection. We regularly organize IP-relatedactivities, such as comprehensive training sessions, online quizzes, and other initiatives, to raise employees’ awareness of intellectualproperty. This encourages full participation from everyone and strengthens our ability to protect our innovative achievements, providinga solid foundation for the Company’s long-term growth.

In April 2024, we launched the Intellectual Property Month, which includeddistributing IP knowledge cards, hosting themed seminars, and holding onlinequizzes. These activities aimed to educate employees on the basics of intellectualproperty, related laws and regulations, and real-world applications. The goal wasto increase awareness across the Company and enhance our capacity to protectour innovations. Over 200 employees participated in the event.

Activities held during the Intellectual Property Month

To strengthen our independent innovation capabilities and motivate our researchers, we have developed the Intellectual Property RewardManagement Policy. This policy provides di?erentiated rewards for achievements such as software copyrights, invention patents, andacademic papers, ensuring a steady stream of intellectual property output. This approach enhances our core competitiveness and drivesboth technological innovation and long-term development.

We o?er cash rewards toemployees who activelyparticipate in intellectualproperty applicationsand successfully securecorresponding rights.

Intellectual propertyachievements are a keyfactor in the evaluationof technical titles, jobappointments, promotions,and other forms ofrecognition.

Each year, we conductan awards program torecognize and rewarddepartments and individualswho excel in meetingintellectual property goals.

If any employee attemptsto claim ownership of ajob-related invention withoutauthorization, we will holdthem legally accountable andseek nancial compensationfor any losses incurred by theCompany.

Over

employees participatedin the event.

CHC Navigation holds over900 intellectual property rights, including over 400 patents.

Key Achievements

Intellectual Property Incentives

Timely Incentive Program of R&D Center

R&D Incentives

Intellectual Property Training

Overview of Intellectual Property Incentive Policy

Timely Incentive Program of R&D Center

Case StudyIntellectual Property Month–Enhancing IP Knowledge

3940

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Key Certication

Product Quality

At CHC Navigation, we adhere to the philosophy of “making CHCNAV atrusted organization and CHCNAV products synonymous with high quality.”We focus on continuous quality improvement through process optimizationand standardized procedures. By implementing system documents such asthe Non-Conformance Control Procedure and the Product Protection ControlStandard, we provide a solid institutional foundation for quality management.We also established the Quality Management Committee to oversee quality-related decisions, including approving quality policies, setting goals, approvingmajor improvement projects, and assigning responsibilities for resolving issues,ensuring a scientic and e?cient approach to quality management.

Key AchievementsBy the end of the reporting period, the Company had51 quality-related procedural documents and 372 process documents.

We respect processes, get things right the rst time, unlock our employees’ potential, and continuously improve. We workalongside our customers to balance opportunities and risks, quickly respond to their needs, and achieve sustainable growth.CHCNAV is committed to delivering high-quality products, services, and solutions, consistently creating value for everycustomer.

1.We see quality as the lifeblood of our company. It is the foundation of our brand and value proposition and plays a critical

role in fostering long-term, loyal customer relationships.

2.We strive for excellence, centering our focus on the end-user experience. We ensure quality through four dimensions:

systems, products, components, and processes, maintaining high standards for results, processes, and our reputation.

3.We aim to create a culture that respects rules and processes, gets things right the rst time, and continuously improves.

4.We ensure that customer requirements and expectations are clearly communicated to our partners and e?ectively

managed, working together to create high-quality and sustainable growth across our value chain.

5.We value expertise and promote a culture of collaboration, building world-class teams of specialists in every eld.

6.Everyone is dedicated to maintaining work quality, ensuring that no subpar output is produced, accepted, or allowed. We

don’t cover up issues, pass the blame, or falsify results; all decisions and problem-solving are based on facts.

7.We hold management accountable for quality, build a quality assurance system based on established processes, and

develop a comprehensive quality management system that can support our future growth.

Quality Goal: To make CHC Navigation a benchmark for high quality in the geographic information and surveying industry.

Success through quality:We are always mindful that quality is the cornerstone of CHCNAV’s survival and the reason ourcustomers choose us. We ensure that customer requirements and expectations are accurately communicated across ourentire value chain, building quality system together.

Quality Policy

Quality Strategy

Quality Management System Certication

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Step 1

Step 2Step 3

On-site training session

PM

R&D DirectorQuality Director

PQA LeaderDepartment ManagerCommunication and

Decision-Making

Communication andDecision-Making

Communication andDecision-MakingPMT leader

Quality Assessment SystemOur quality assessment system focuses on developing strong quality leadership and strictly enforcing quality standards to ensure fullparticipation and ongoing improvement. By assigning clear quality management responsibilities, we have established a comprehensiveassessment framework that ensures that every stage meets high standards. When urgent quality issues arise, we follow a set resolutionprocess to respond quickly and e?ectively, ensuring product quality and customer satisfaction.

We strictly enforce product quality management responsibilities, with a clear system where “the business leader is the primary responsibleperson for quality.” This strengthens accountability in quality management. If product quality issues cause the annual rework rate to fallshort of the target and signicantly a?ect customer satisfaction and the Company’s brand image, the responsible business leader will beheld accountable. This system drives all employees to prioritize quality, ensuring continuous product improvement and protecting ourcompany’s reputation and customer trust.

We focus on precise control of product quality by setting clear qualitymanagement goals, identifying high-risk steps in production accurately, andmaking targeted inspections to increase the pass rate of nished products.To ensure consistent product quality, we have implemented Material LifecycleManagement and Category Material Lifecycle Responsibilities and BusinessGuidelines. These policies oversee every stage of the material lifecycle,assigning clear responsibilities to each team member to ensure that materialsmeet quality and compliance standards.

To strengthen employee awareness of quality and encourage ongoingimprovements, we organized targeted quality management trainingprograms. These included events such as “Quality Month” and specializedR&D workshops. By combining live presentations with on-site inspections,we systematically communicated the key principles, methods, and objectivesof quality management to our employees, aiming for comprehensive productquality improvement.

During the reporting period, we held

quality training sessions in collaborationwith the Product Quality and OperationsDepartments, with over 170participants.

During the reporting period, we successfullyimplemented684 quality assurance

plans as part of our annual quality strategy,consistently driving improvements in productquality.

In September 2024, we hosted a “Quality Month” event focusing on advancing product quality management. The trainingcovered essential tools like FMEA (Failure Modes and E?ects Analysis) and DFMEA (Design Failure Modes and E?ectsAnalysis). By combining theory with practical case studies, participants gained a deeper understanding of these tools’ coreprinciples, applications, and best practices, further enhancing our product quality management and providing strong supportfor identifying and solving potential problems.

We prioritize customer feedback and have set up a fast-response mechanism for urgent quality issues. By creating standardized solutionsand streamlining our processes, we signicantly improve the e?ciency of issue resolution, leading to higher customer satisfaction.

Key Initiatives of Quality Culture

Our Process for Resolving Urgent Issues

Product Management Responsibility

Addressing Urgent Quality Issues

Quality Assessment System

Building Quality Awareness

Case StudyFMEA Tool Application - Enhancing Product Quality and Risk Management

Key Achievements

Key Achievements

4344

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Prompt Response,Professional Service,ComprehensiveSolutions, CustomerSatisfaction

Customer-Centered,Practical, andEnterprising

Quality First, IntegrityAlways, Service Above All

Service Objectives

Service Policy

Corporate Value

Aftersales Service Policy and Objectives

Global Aftersales Service Locations

GBT 27922-2011 After-Sales Service Certication Certicate —— Five-Star

Customer Prole

On-Site ServiceThird-Party HandlingSpare Parts Usage, Return,and Write-O?Equipment Repair

CustomerFeedback

Follow-Up

ReviewClose

CustomerCustomer

Technical UpgradesTechnical Service Engineer (1st Line)

Technical Service Engineer

Service Team Leader

Technical Service Engineer

Technical Support Expert (2nd Line)R&D Lifecycle Management Team (3rd Line)

AcceptanceProcessingClosure

ReceiveOrderTechnicalVerication

VoiceChannel

EmployeeChannelsSystemSelf-CheckEnterprise WeChatConsultationOnline Consultationof O?cial WebsitevvWeChatO?cialAccount400 HotlineConsultation

CreateWorkOrderServiceAuthenticationIssueSeverityDenitionDispatchOrder

Record,Analyze,Feedback

ImproveClose

FaultDiagnosis

DevelopPlan

ImplementPlan

CustomerConrmation

Repair EngineerWarehouse Sta?

Third-PartyOn-Site Service Engineer

Work Order DataCase Database

Customer Rights

After-Sales Service

After-Sales Service Management System

After-Sales Service Process

Customer rights are central to our operations. At CHC Navigation, we are driven by customer needs—focused on addressing their painpoints, expectations, and key concerns. We prioritize the development of high-quality, cost-e?ective products and services that ensurereliable performance, responsive service, and optimized operational costs. Our well-established after-sales service system allows us torespond quickly, resolve issues e?ciently, and continuously improve customer satisfaction. We are committed to helping our customersincrease e?ciency and reduce costs, enhancing their competitiveness and protability, and supporting their long-term success.

Focusing on the challenges and pressures that matter to our customers, we provide competitive and precise spatiotemporalinformation solutions and services, continuously creating maximum value for our customers.

We uphold the principle of “Quality First, Integrity Always, Service Above All” in our after-sales service approach. Guided by a customer-centric, practical, and forward-thinking culture, we communicate our service values and mission to both employees and clients throughsystematic training and outreach. To ensure consistent and reliable service, we have implemented the CHC Navigation After-Sales ServicePolicy, which sets clear standards and procedures for all after-sales activities. Through standardized management and a strong servicemindset, we have built a comprehensive service system, establishing distinct service standards and practices that e?ectively protectcustomer rights.

Our after-sales service process consists of three key stages: acceptance, resolution, and closure. This process is supported by threecore modules: customer proles, work order data, and a case database, all working together to create an e?cient data support system.Customer proles ensure quick authentication and accurate information, work order data enables control and full traceability of theprocess, and the case database helps resolve issues quickly and builds expertise over time. Through modular data management,we increase service response speed and problem resolution e?ciency, ensuring an excellent customer experience and consistentservice quality.

Our after-sales service management system is a collaborative, multi-level framework designed to deliver e?cient and professionaltechnical support and after-sales service to our customers. With a well-dened organizational structure and clearly assigned roles andresponsibilities, we ensure seamless service delivery and consistently high customer satisfaction.Our after-sales service network covers all provinces across the country, providing customers with quick and reliable support. In addition,we have established international service points to o?er comprehensive technical assistance and after-sales coverage for our globalclients, further enhancing their overall service experience and satisfaction.

Our Mission

Our Mission

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Customer Satisfaction Survey GoalsAfter-Sales Service Workow

Customer Satisfaction Survey Goals

Customer Satisfaction Survey Process

7-Day Free Return, Exchange,and Warranty

15-Day Free Exchange andWarranty

1-Year Warranty

Customer “Three Guarantees” Rights

3.7%

74.9%

Acceptance Stage

Customer Complaint Channel

Customer Satisfaction Survey Process

Acceptance Stage

Warranty PolicyDescription

Acceptance StageClosure Stage

Customers report issuesthrough various channels.Our technical serviceengineers create a workorder based on the reportedissue, authenticate it, andassess its severity.

Our technical service engineers workto resolve the issue through four steps:

technical verication, fault diagnosis,solution development, and solutionimplementation. Once the solution isready, it is sent to the customer forapproval.If the issue cannot be resolved, weescalate it to our technical experts andR&D team for further assistance.If on-site support is needed, we sendan on-site service engineer.

We place strong emphasis on protecting our customers’ after-sales rights and strictly adhere to our after-sales service policies. Allcustomers who purchase our products are entitled to the legally mandated “Three Guarantees” within the specied time frame in the eventof a quality issue. In addition, we provide comprehensive warranty services and maintain a dedicated after-sales support team to ensureall issues are addressed promptly and e?ectively, delivering a reliable and worry-free service experience.

We have a dedicated customer complaint channel where customers can report issues by calling our customer service hotline at4006206818. Every complaint is thoroughly investigated to ensure timely and proper resolution, and we take appropriate actionagainst the responsible parties based on our policies. Additionally, we develop improvement measures based on the nature of thecomplaint to continuously optimize our service processes and enhance the overall customer experience.

To better understand our customers’ needs, we collect feedback and insights through a systematic approach, identifying key factorsthat impact customer satisfaction. Since 2020, we have partnered with a qualied third-party provider to conduct an annual customersatisfaction survey for ve consecutive years, ensuring objective and professional results. In addition, we carry out ongoing follow-upsurveys throughout the year, including 400 hotline follow-ups and proactive outreach from our product line teams. This comprehensivetracking system helps us continually improve service quality and optimize our products based on real customer input.

To assess the performance of our products, quality, technical services, and after-sales supportfrom the customer’s perspective.

Survey results from 2024 show that our overall customersatisfaction reached 74.9%, a 3.7% increase from 2023,indicating steady growth. Both customer loyalty and NetPromoter Score (NPS) also saw signicant improvementcompared to 2023. Customer satisfaction remains at a“Good” level, while loyalty and NPS have reached “Excellent”levels for the rst time, marking a signicant achievement incustomer relationship management and service quality.

The survey is conducted primarily through questionnaires, covering various aspects such as promotions, products, services,competition, and overall satisfaction. The process includes questionnaire design, customer research, data collection, and analysis.Ultimately, the results provide us with customer satisfaction scores, loyalty levels, and NPS, o?ering valuable insights that guide ourimprovement strategies.

To improve product quality control and management, enhance customer perception, andstrengthen the Company’s image.To evaluate employee performance.

Survey results from 2024show that our overall customersatisfaction reached

increase from 2023Within 7 calendar days from the start of the warranty period, if the main unit of the productexperiences a performance failure not caused by human error, after verication by ourtechnicians, you can choose to have the product repaired or replaced with the same model,or return it.

We also provide full technical training support for our customers. Upon product delivery, we o?er free technical training (available bothonline and o?ine) to the designated personnel outlined in the contract, ensuring that they are well-versed in the equipment’s functions andcapable of operating it e?ectively. During the warranty period, customers can also access free online technical training to further enhancetheir operational skills and ensure the long-term, e?cient use of the equipment.

Within 15 calendar days from the start of the warranty period, if the product encounters any ofthe following issues, you may choose to exchange it for the same model and specications:

1.The main unit of the product experiences a performance failure not caused by human error.

2.The product is damaged during shipping, and you can provide a damage certicate from the

shipping company.

3.The product is found to have signicant discrepancies from the original product description

in one or more important aspect.During the warranty period, if the main unit of the product experiences a performance failurenot caused by human error, you are entitled to free repair services.

The issue is closed,which includes collectingfeedback, following up,reviewing, and nalizingthe case.Conrm the customer’ssatisfaction with theresolution.

Customer Satisfaction

Design anddistribute thequestionnaire

to relevantdepartments

Evaluate and

rene thequestionnaire

Prepare for thesurvey, including

sta? training

Conduct the

surveyExtract customer

list

Analyze andinterpret data

4950

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Thank You Letter for Wuhan Huace SatelliteTechnology Co., Ltd.–Hunan Xiangtan EmergencyRescue

August 19, 2024

China Anneng Group, First EngineeringBureau,Guangxi Anlan TechnologyDevelopment Co., Ltd.Zhaotong City Geological Disaster Monitoring andEarly Warning Project

August 12, 2024

Yunnan Geological Engineering SurveyDesign & Research Institute Co.,Ltd.Emergency Response for the Breached DongtingLake Dike in Huarong County, Yueyang, HunanProvince

July 24, 2024

China Anneng Group, First EngineeringBureau Co., Ltd.Thank You Letter for Wuhan Huace SatelliteTechnology Co., Ltd -Hunan Tuanzhou Dike PipingRisk Treatment

July 11, 2024

China Anneng Group, Third EngineeringBureau, Wuhan BranchSuper Typhoon Prevention and Large-Scale FloodRescue Drill

May 14, 2024

China Anneng Group, Second EngineeringBureau Co., Ltd.2024 Provincial Water and Drought Disaster DefenseDrill

May 7, 2024

Zhejiang Provincial Water Conservancy FloodControl Technology CenterLetter of Appreciation from the China Association forDisaster Prevention

January 9, 2024China Association for Disaster PreventionEmergency Survey and Mapping Support for theEarthquake in Jishishan County, Linxia Prefecture

January 3, 2024

Department of Natural Resources of GansuProvincialThank You Letters from Customers

NameDateIssued by

Customer Satisfaction Training

Supplier Certication Department

(Sourcing Engineers)

Procurement Engineering Department(Supplier Quality Engineers, SQE)

Procurement Execution Department

(Buyers)Handle supplier certication and costmanagement, including organizingthe identication and evaluationof potential suppliers, building oursupplier resource pool, developingprocurement strategies, managingmaterial costs, and maintainingsupplier relationships.

Oversee supplier quality management,which includes supplier qualicationaudits and evaluations, materialprocess development at the supplier’send, daily quality monitoring,PCN management, performanceassessments, and supplier exits.

Manage the execution ofprocurement orders, which involvescontract management, trackingorder status, order reconciliation,order closure, reverse orders, andevaluating delivery performanceas part of supplier performancereviews.

Procurement Department

Management Structure and Responsibilities of the Procurement Department

Improving Customer Satisfaction

Supplier Selection System

To continually enhance customer satisfaction, we use systematic data analysis to identify customer needs and pain points, and then createtargeted improvement plans. We also integrate customer feedback into performance evaluations to strengthen service awareness ando?er specialized training to improve service quality. As a result, our service quality has signicantly improved, customer satisfaction hasconsistently risen, and we have received numerous written commendations and thanks from our clients.

At CHC Navigation, we take a meticulous approach to responsible procurement. By implementing the Procurement and PaymentInternal Control Management System and the Supplier Management System, we have standardized the entire procurement process,ensuring transparency and fairness in supplier selection. We focus on the reputation, supply capabilities, and social responsibility ofour suppliers, carefully selecting our partners. We also promote open procurement practices, ensuring that the process is transparent,fair, and impartial. We give equal opportunities to small and medium-sized businesses, providing them with a fair chance to competeand supporting the sustainable development of our supply chain.

In the supplier selection process, we are committed to building long-term, stable relationships with high-quality suppliers. To ensurethis, we have set up a dedicated Procurement Department and a procurement committee to oversee supplier management. Oursupplier management process involves scientically categorizing suppliers and implementing a strict entry management system toensure that all suppliers meet our quality and delivery standards. These steps have not only guaranteed the stability of our supplychain but also fostered long-term cooperation and mutual growth with our suppliers.

The supplier selection process involves collaboration across multiple departments to ensure both e?ciency and compliance. TheProcurement Department, as the central body for supplier management, includes the Supplier Certication Department, ProcurementEngineering Department, and Procurement Execution Department, each responsible for supplier certication, technical requirements,and procurement execution, respectively. The Quality Assurance Department inspects incoming materials, production processes,and nished products to ensure that quality standards are met. The Planning Department releases procurement plans based onmarket demand and forecasts, ensuring smooth operations within the supply chain. Additionally, the Procurement Committee actsas the collective decision-making body for procurement-related matters, overseeing supplier selection and management, categorymanagement, and the establishment of business rules, ensuring procurement practices comply with regulations and align withstrategic goals.

During the reporting period, we established stable, mutually benecial relationships with over700 suppliers.

In 2024, we organized training to improve customer satisfaction, with a focus on enhancing employees’ service awareness andcommunication skills while streamlining the process for resolving customer issues. Over 30 representatives from di?erent elds participatedin the training. This enabled our employees to respond to customer needs more e?ciently, improve service quality, and further strengthencustomer relationships, ultimately increasing brand loyalty.

Case StudyCustomer Satisfaction Training to Strengthen Relationships

Responsible Procurement

Supplier Selection

Key Achievements

5152

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Ability to developprojects

Core processescannot beoutsourced; masteryof industry-leadingprocesses

Ensure on-timedelivery; adapt tosmall batch, multi-variety production

Complete qualityframework;comprehensive qualitysystem in place

Timely response

Supplier Qualication Management

Supplier Performance Evaluation Process

Performance Rating Classication and Application

Development

Capability

QualityAssuranceProcessCapability

Service &FlexibilityDeliveryCapability

Start

Monthly Performance

ReviewSupplier PerformanceData Summary Table

Semi-Annual Supplier

ClassicationSupplier Classication

Management

End

Strategic PotentialRating Table ofSuppliersAnnual StrategicPotential Assessment

New Product Development can be directly assigned afterSQE and Sourcing review to decide whether an on-siteinvestigation is necessary.Reduction in procurement or suspensionA warning for more serious issuesPayment suspensionInitiate a performance improvement initiative forthe supplier, including reports, on-site audits, yinginspections, and problem analysis meetings.Elimination process;Materials will be switched to other suppliers of the samecategoryInitiate the supplier switch process and simultaneously startsourcing potential new suppliers.

Grade A

Grade B

Grade C

Grade D

90 ≤ SupplierPerformance

Score≤10070 ≤ Supplier Performance

Score < 9060 ≤ Supplier Performance

Score < 70

Supplier Performance

Score < 60

Supplier Classication

Supplier Qualication Standards

We classify our suppliers into four categories based on nancial impact (procurement volume) and availability (supply risk): strategic,leverage, bottleneck, and general suppliers.? Strategic suppliers have high procurement volumes and high supply risks. They typically supply critical materials or technologies thatdirectly inuence our core competitiveness.? Leverage suppliers have high procurement volumes but low supply risks. They mainly supply standardized and highly substitutablematerials.? Bottleneck suppliers have low procurement volumes but high supply risks. They are usually related to non-standard parts or scarceresources.? General suppliers have both low procurement volumes and low supply risks, with limited strategic potential.Based on this classication, we implement di?erentiated strategies in the selection of suppliers, cooperation models, and resourceallocation to ensure that our supply chain is e?cient, stable, and sustainable.

Before onboarding a supplier, we make a thorough evaluation of their quality management system and manufacturing capabilities. Thisincludes reviewing their development capabilities, process capabilities, delivery reliability, quality assurance, and service exibility. Thisprocess ensures that we select the most suitable partners, minimizing procurement risks.

New product development will be prioritized for directassignment, and in principle, on-site investigation orevaluation may not be required.Additional procurement share opportunities are increased,adjust the purchasing shares among similar suppliersaccording to their rankings and procurement shareadjustment happens in the next month/quarter;Annual recognition as an “Outstanding Supplier” at thesupplier conference with awards, trophies, and certicates.

Suppliers undergo monthly performance reviews and an annual strategic potential assessment. Performance is evaluated across threekey dimensions: quality, delivery, and service. The quality score includes factors like on-time delivery rate, return rates, and recurrenceof issues, ensuring product quality. The delivery score is used to evaluate order fulllment rates, material management, and cooperationlevels, focusing on timely delivery and smooth collaboration. The service score is used to assess the supplier’s technical contributions,innovation, and problem-solving abilities.Additionally, we evaluate the strategic potential of suppliers annually, categorizing them into di?erent levels based on their operationalmanagement capabilities, technological innovation strength, business coverage, and cross-sector collaboration, providing valuablereference for long-term cooperation.

After selecting our suppliers, we implement a systematic approach to ensure that they consistently meet our strategic development goals.We have established the Supplier Management System that outlines the expectations for managing suppliers. We focus on assessingsupplier performance in areas such as product quality, service quality, cost control, delivery times, and product competitiveness, whiledriving continuous improvement. Through a structured performance management system, we regularly evaluate supplier performance,identify improvement areas, and provide training to enhance their technical expertise, quality management capabilities, and servicestandards, helping us build e?cient, long-term supply chain partnerships.

Supplier Management

Supplier Performance Management

5354

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Supplier conference

Non-Disclosure Agreement and Transparent Procurement Agreement

R&D Trial Production

Product quality must meetCHCNAV’s trial productionrequirements.

Product Testing

Suppliers need to cooperatewith CHCNAV for producttesting and trials.

Small Batch Stage

Suppliers must provideproducts that match massproduction standards forsmall batch trial runs.

Product Labeling andPackaging

Product packagingmust meet CHCNAV’srequirements.

Product AcceptanceCriteria

Shipments must beaccompanied by a shippingreport, with the contentconrmed and aligned withCHCNAV’s specications.

Process QualityControl

The production process must bestable and consistent, ensuringadherence to standardized processesand manufacturing practices.

ChangeManagement

Any design or engineering changesmust be submitted to CHCNAV forapproval, and changes can only beimplemented once they are veriedand authorized.IssueResolution

Suppliers must actively cooperate withCHCNAV in analyzing and addressingcomplaints and corrective actions.

Non-ConformingProducts

Suppliers should promptly handlenon-conforming products as perCHCNAV’s requirements.

CompensationMechanism

Compensation should follow theSupplier Quality AbnormalityCompensation Standards.

Pre-ProductionPost-Production

Supplier Quality Management Requirements

Supplier Quality Management

Attaching great importance to supplier quality management, we require our suppliers to sign a quality goal commitment letter everyyear and set clear objectives around key performance indicators. Through strict evaluation and selection processes, we ensure that oursuppliers possess reliable quality control capabilities to guarantee component quality at the source. At the same time, we continuouslyoptimize our management processes and strengthen quality control to enhance overall supplier performance and ensure product qualityand supply chain stability, thereby laying a solid foundation for long-term cooperation with our suppliers.

To continuously enhance the overall performance of our supply chain and ensure e?cient delivery, we are rolling out specialized trainingprograms for our core suppliers. These initiatives are designed to raise awareness of quality, streamline production processes, andincrease on-time delivery rates, all while building an e?cient and sustainable supply chain together.Supplier Training

Case StudyBuilding Quality Together, Winning the Future Through Collaboration

In May 2023, the CHC Navigation 2023 Supplier Conference was successfully held at the CHCNAV Smart Industry Base under thetheme “CHCNAV 20 Years-Grateful for Your Support.” The conference, with the theme “Building Quality Together, Winning the FutureThrough Collaboration,” brought together nearly 300 supplier representatives to discuss future development. The Chairman reectedon the Company’s 20-year journey and expressed heartfelt thanks to our supplier partners for their ongoing support at the conference.The event also featured an award ceremony recognizing suppliers who excelled in joint innovation, delivery e?ciency, and qualitycontrol. Awards like the Joint Innovation Award, Best Delivery Award, and Excellent Quality Award were presented. Going forward,CHC Navigation will continue to collaborate closely with our supplier partners to deliver outstanding quality, foster industry innovation,and provide superior products and services to our customers, driving mutual success.·

We continue to strengthen the integrity ofour supply chain procurement processes,aiming to meet high standards of compliance,transparency, and sustainability. In the processof all our business activities, we rigorouslyfollow applicable laws and regulations,establish clear ethical standards for thesupply chain, and implement standardizedprocurement bidding procedures along witha strong anti-corruption oversight systemto govern the behavior of procurementsta?. To ensure integrity and transparencyin our commercial activities, we require allexternal partners—including customers andsuppliers—with whom we have businessor nancial dealings to sign a TransparentProcurement Agreement and a Non-Disclosure Agreement. These agreementshelp mitigate procurement-related corruptionrisks and create a transparent, fairprocurement environment.

We are committed to fairness and impartiality in cooperation with all our partnerships, ensuring equal treatment for all. In terms ofnancial management, we strictly adhere to contract terms, ensuring timely settlement of payables and preventing overdue or unpaidbalances, thereby protecting the legal rights and interests of all our partners.

Transparent Procurement

Fair Treatment of SMEs

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Agrishow 2024 Exhibition Scene

INTERGEO 2024 Exhibition Scene

Exhibition Scene

Water Academic Congress Scene

Industry Collaboration

Industry Event Participation

To foster industry collaboration, we actively integrate into the broader industry ecosystem by participating in events, forums, and exhibitions,continuously strengthening our inuence and voice. We are also committed to advancing the standardized development of the sector byactively contributing to the formulation of national and industry standards. Through these e?orts, we support the high-quality growth of theindustry and help build an open, collaborative, and mutually benecial ecosystem.

We place strong emphasis on collaborative partnerships within the industry. By actively participating in exhibitions, seminars, and relatedevents, we continuously strengthen communication and cooperation with industry peers. These activities help us stay informed on thelatest trends, cutting-edge technologies, and advanced management practices, while also o?ering valuable platforms to showcase ourstrengths and increase brand visibility. Through deep engagement with experts, scholars, and peer companies, we gain clearer insight intomarket needs, drive technological innovation, and respond more e?ectively to changing conditions—ensuring our path toward sustainabledevelopment.

In October 2024, the Annual Conference and Exhibition of China Geographic Information Science and Technology ofSurveying and Mapping was held in Zhengzhou. Our CEO attended the opening ceremony and delivered a keynote speech.We showcased more than 60 self-developed smart surveying and mapping products, including the new Xingzhe X500 droneand the RuShi RS10 measurement system, which drew signicant attention. Our latest LiDAR technology advancementswere also featured in media coverage during the event. This conference not only highlighted our technological capabilities,but also helped strengthen industry partnerships and supported the advancement of a digital China.

In November 2024, the China Water Academic Congress was convened in Xi’an. Our General Manager for the WaterConservancy sector delivered a specialized presentation at the “Smart Water Conservancy & Digital Twin” session,showcasing our innovative solutions in areas like comprehensive monitoring of medium and large reservoirs, UAV inspection,water conservancy surveying, and hydrological testing. Leveraging technologies such as high-precision positioning, UAVs,and unmanned surface vessels, these solutions support water safety, disaster prevention, and digital twin development. Wewill remain committed to deepening our engagement in the water conservancy sector, contributing to the industry’s high-quality development and the advancement of digital China.

In April 2024, Agrishow 2024, Brazil’s largest agricultural machinery exhibition, was held at the Ribeir?o Preto Exhibition Center.As one of the most inuential platforms for agricultural technology and machinery in Latin America, Agrishow continues tobe a key venue for showcasing industry innovations and trends. As a global leader in precision agriculture, we presented aselection of high-end products and solutions, drawing strong interest and engaging in in-depth discussions with numerousvisitors. Highlights included our NX510 series auto-steering system for agricultural machinery, the X Series guidance system,and the IC100 satellite leveling system—all demonstrating our technological leadership in precision agriculture.

In September 2024, the INTERGEO 2024 exhibition o?cially opened in Stuttgart, Germany. We showcased our latestadvancements in high-precision positioning and intelligent applications, including the CHCNAV Star-Earth Integrated GNSSAugmentation Service and the RuShi RS10 Handheld LiDAR+GNSS RTK system, among other innovations. Our regionalbusiness manager took the stage to share recent breakthroughs and application cases in LiDAR technology. At INTERGEO,we engaged with industry experts, innovators, and global partners, exchanging insights on emerging trends and exploring newmarket cooperation opportunities—further expanding our international presence and inuence.

Case StudyParticipating in International Exhibitions to Accelerate Global Brand Expansion

Case Study

Case Study

Participating in Major Industry Exhibitions to Showcase Our Technological Expertise

Engaging in Academic Conferences of the Industry and Deepening Our Expertise

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Other Exhibitions

Our Booth at the CIIF

December 5, 2024 Zhejiang International Intelligent

Transportation Industry Expo

September 20, 2024 Seminar on Multi-Beam Bathymetric SystemTechnology

December 6, 2024 Seminar on Smart Hydrology Technology of

Yangtze River BasinTechnology

October 24, 2024 International Summit on BDS Applications

NationalStandard

GB/T 43478-2023 July 2024

GroupStandard

T/CAMA 102—2023January 2024

CategoryStandard

Number

Implementation DateImage

Standard Development

Case StudyShowcasing Our Innovation at the CIIF

In September 2024, the 24th China International Industry Fair (CIIF) was held in Shanghai. At the Science and TechnologyInnovation Exhibition, we showcased our BeiDou high-precision smart equipment and solutions, covering sectors such assurveying, marine, agriculture, and construction. Our booth attracted signicant attention and sparked engaging discussionswith industry professionals. During the event, our H7 integrated GNSS monitoring station—recognized for its adaptive frequencymodulation and ultra-long battery life—received the “CIIF High-tech Engineering Award,” highlighting our technologicalcapabilities and further strengthening our industry inuence.

We are actively engaged in the formulation of national and industry standards, contributing to the development of a more regulatedand unied industry landscape. Through our role in standardization, we aim to advance technological capabilities, promote industrybest practices, and enhance our inuence—supporting the high-quality growth of the sector.

Standard Development

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Environmental Protection and Climate Response

Environmental Risk Management

Tackling Climate Change

We have established a comprehensive environmental management policy and system, with clearly dened responsibilities for eachdepartment and role to ensure all environmental e?orts follow structured and consistent guidelines. Based on our Infrastructure and WorkEnvironment Control Procedures and Environmental and Safety Operation Control Procedures, we manage infrastructure, workplaceenvironments, and environmental matters systematically to ensure the e?ective functioning of our environmental management system.We have obtained environmental management system certication and are committed to continuously optimizing our environmentalprocesses. Through regular internal audits and management reviews, we ensure that all activities related to project development anddesign meet applicable environmental standards and requirements.

To ensure our management policies and goals are e?ectively implemented, and to control operations related to key environmental factors,we have developed the Environmental and Safety Operations Control Procedures. This procedure provides a systematic approach tomanaging environmental and occupational health and safety processes for engineering consulting, design, and general contractingprojects within our management system scope. It denes the methods and conditions required for controlled operations, ensuring thatall activities are conducted in a safe and compliant manner. By following this procedure, we can e?ectively manage or minimize potentialenvironmental impacts and apply scientic methods to address identied risks.

We are committed to tackling climate change by promoting the adoption of clean technologies through innovation. Our high-precisionnavigation and positioning products and solutions are widely applied in smart transportation, precision agriculture, and natural resourcemanagement, helping clients reduce carbon emissions and enhance resource e?ciency. Looking ahead, we will continue to exploreopportunities in clean technology and contribute actively to global climate governance.

During the reporting period, we strictlyadhered to environmental regulations,with no major environmental incident oradministrative penalty.

Key HonorsKey Achievements

We Have Been Certied with ISO 14001 Environmental Management System

This product combines radar and visual technologies to achieve comprehensive, high-precisionmonitoring of areas such as slopes, reservoir embankments, and road shoulders. It can capture displacement changes in realtime, promptly detecting potential safety hazards.

Leveraging IoT and BeiDou high-precision positioning technology, we have developed a deformationmonitoring system that is widely used in elds such as geological disasters, mining safety, and transportation slope monitoring.It can collect 3D deformation data of the monitored object around the clock.

This solution integrates surveying-grade LiDAR, high-resolution thermal infrared cameras, and

visible light cameras, along with intelligent seepage detection algorithms, to conduct all-weather inspections of levees. Itcan promptly detect and address risks such as seepage and leakage. With the introduction of LiDAR, the false alarm rate isreduced to below 30%, signicantly improving detection accuracy, especially in nighttime and complex environments.

Using high-density laser point cloud technology, this product enables precise 3D measurement ofgrain in storage, avoiding errors and resource waste typically associated with traditional manual grain stacking.

With the rapid advancement of surveying technology, the demand for forest resource informationhas become increasingly diverse. Intelligent equipment is being more widely adopted in forestry applications, particularly inforest pest control, wildre early warning and monitoring, forest resource surveys, and forestry digital twins.

In the context of frequent extreme weather events triggered by climate change (suchas heavy rainfall and landslides), this device provides scientic and reliable data support for monitoring geological disasters,helping with disaster prevention and mitigation.

This solution o?ers real-time monitoring and early warning capabilities for infrastructuresafety, reducing disaster-related losses.

Through e?cient monitoring and early warning, this solution reduces the risk of disasterscaused by extreme weather events (such as heavy rain and ooding), enhancing climate adaptability.

In light of the climate change threat to food security, this solution improves the e?ciencyand accuracy of grain management, reducing food losses and indirectly supporting climate adaptation.

The smart surveying and mapping equipment provides crucial technical support in

addressing climate change. By integrating drones and high-precision LiDAR with such technologies as digital twins and imagerecognition, the Company has achieved e?cient forestry surveys, accurate identication and localization of forest pests anddiseases, as well as monitoring and early warning of forest res, thus helping reduce carbon emissions caused by forestdegradation. The related solutions can signicantly enhance the e?ciency and accuracy of forestry surveys, facilitate theprotection and management of forest resources, safeguard the carbon sequestration capacity of forests, and enable forests toplay a better role in climate regulation.

CHCNAV’s Climate Change-Related Applications

Monitoring Solutions

3D Solutions

Application Scenario

Application Scenario

Application Scenario

Application Scenario

Application Scenario

Climate Change Response Value

Climate Change Response Value

Climate Change Response Value

Climate Change Response Value

Climate Change Response Value

Radar-Visual Integrated Multi-Point Displacement Monitoring Instrument

Drone Levee Inspection and Risk Detection Solution

Deformation Monitoring System Solution

Grain Storage Measurement Solution

Intelligent Surveying and Mapping Equipment

6364

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Energy Management and Resource Conservation

To strengthen the management of energy and resources, ensure their e?cient and responsible use, reduce costs, and improve overallbusiness performance, we have established the Resource and Energy Management Control Procedure. The Administrative Departmentis responsible for overseeing the planning, monitoring, and evaluation of energy and resource consumption across all departments andworkshops, ensuring the implementation of management measures. Each department is accountable for daily operations, executingenergy-saving and consumption-reduction initiatives, and ensuring the proper use of energy and resources in line with their responsibilities.Additionally, the Administrative Department conducts regular, comprehensive reviews, organizing at least one energy and resource usageaudit across the company every six months. Through on-site inspections, data analysis, and other methods, we identify potential areasof waste, assess the e?ectiveness of energy-saving measures, and develop corrective actions for any issues found, ensuring that thesecorrections are tracked and implemented.

Furthermore, we encourage the principles of water saving, electricity saving, energy saving, land saving, material saving throughout thecompany. Tailored control measures are put in place for di?erent spaces and activities, including process optimization, the adoption ofenergy-e?cient equipment, and waste reduction. By doing so, we support green and sustainable development, continually improve ourmanagement systems, and contribute to both economic and environmental benets.

The “Four New” measures refer to new technologies, new processes, new materials, and new equipment.

Departments must strictlyfollow quota management

guidelines, use rawmaterials and auxiliarymaterials e?ciently,and eliminate wastefulpractices.

Departments must adhereto the o?ce suppliesrequisition system, prioritizeconservation, avoidunnecessary waste, andimprove the e?ciency of

resource use.

At the end of each year, theAdministrative Departmentcompiles and analyzes the totalenergy consumption for the year,setting energy usage targets for thefollowing year for each departmentto ensure clear goals and assigned

responsibilities.

Raw Materials and AuxiliaryMaterials Management:

O?ce SuppliesManagement:

Energy ConsumptionStatistics and Allocation:

Energy and Resource Consumption Management

Tailored energy and resource control measures have been developed for di?erent locations and operations

Places andOperations

ControlContent

ControlMeasures

O?ce Areas (such asphotocopying, printing, airconditioning, and lighting)Engineering Design and GeneralContracting Projects

Energy saving, consumptionreduction, and emission reductionWater saving, electricity saving,energy saving, land saving,material saving, etc.Construction and Installation Sitesfor General Contracting Projects

Paper and electricity conservation

Optimize paper usage, turn o?power promptly, and enhance dailymanagement

Strengthen management and monitoringthroughout the entire project lifecycle

Improve process design, strictly followrelevant regulations and standards,and prioritize e?ciency, rationality,and moderation. Implement cleanproduction technologies and apply the“Four New” measures

Energy Utilization

Our company is dedicated to establishing an e?cient energy management system byrening our energy management policies and optimizing energy usage processes tomeet our goals for energy savings and consumption reduction. In line with the Resourceand Energy Management Control Procedure, we conduct regular maintenance andupgrades of o?ce facilitiesand testing equipment, while introducing advanced energy-e?cient technologies and equipment to enhance energy performance.In day-to-day o?ce operations, we implement various initiatives to raise employeeawareness about energy conservation. For instance, we place energy-saving signs ino?ce areas to remind employees to “lights o? when leaving” and “power down equipmentwhen not in use.” We also assign personnel for regular night patrols to ensure thatlights, air conditioning, and other devices are turned o? when unoccupied. Furthermore,through internal training and awareness campaigns, we encourage employees to adoptenergy-e?cient habits and integrate green o?ce practices into all aspects of daily workand life, aiming to foster a low-carbon, eco-friendly workplace.

Energy Conservation Management

Water Resource Management

We are committed to the e?cient use and conservation of water resources, integrating water-saving practices into our daily operations.The Administration Department sets clear water usage targets and assessment mechanisms for each department, ensuring properdistribution and optimal use of water. Our maintenance team regularly inspects and services the water supply system, quicklyaddressing any issues such as leaks or drips to prevent water waste from the source. Each department also studies the Water Lawof the People’s Republic of China and relevant conservation regulations, implementing tailored water-saving measures, rening wateruse processes, and improving e?ciency. By optimizing water usage processes and upgrading equipment, we have made signicantstrides in water resource management, helping to drive more sustainable water use.

Energy-Saving Signs in O?ce Areas

Circular Economy

We explore circular economy practices, focusing on resource recycling and minimizing raw material waste during the R&D and designstages. By recycling and reusing waste materials, we aim to reduce our environmental impact.Administrative, statistical, and o?ce functions, such as typing and photocopying, are the primary areas where paper consumptionoccurs in our company. To ensure e?cient resource use and sustainable management, we have implemented a strict paper-savingpolicy across these departments. We require double-sided printing and copying in all instances to eliminate paper waste at the source,ensuring more e?cient use of o?ce paper.

We designate personnel for nightpatrols to ensure that lights, airconditioning, and other devicesare powered o? when unoccupied,helping to prevent unnecessary

energy waste.

Night Patrols and Energy-Saving Reminders:

The o?ce building and power

load areas are equippedwith separate switches,and designated sta? areresponsible for ensuring thatthe “lights o? when leaving”policy is followed, ensuringthat energy-saving measuresare implemented e?ectively.

When upgradingequipment in the R&D andManufacturing Departments,we prioritize replacing high-energy-consuming deviceswith newer, energy-e?cientalternatives to reduce energyconsumption from the outset.

Independent Switches andAssigned Responsibility:

Equipment Updates andEnergy-E?cient Upgrades:

6566

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Waste Management

As a high-precision navigation and positioning technology company, we produce minimal waste and strictly follow environmentalregulations to ensure proper treatment of wastewater, exhaust gases, and solid waste. In our engineering projects, we prioritize managingwaste emissions by using scientic planning and green construction practices to optimize resource use, minimize waste, and promotesustainable development principles. This approach contributes to environmental preservation.Water Pollution Control

We fully comply with national and local environmental regulations, adopting a science-based and standardized approach to managing water pollution. Through the constructionof advanced wastewater treatment facilities, we ensure that wastewater discharges meetenvironmental standards.In 2024, we maintained a 100% compliance rate for wastewater discharges, with noinstance of exceeding discharge limits. We also regularly engage third-party agencies totest the wastewater, and all test results meet the required environmental standards.

Water Pollution Control Measures

In 2024, we maintained a

100%

compliance rate forwastewater discharges

ensuring

100%

compliant disposal

Waste ManagementWe adopt strict waste management practices to ensure the proper disposal of bothhazardous and non-hazardous waste. For hazardous waste, such as chemicals andadhesives, we comply with national regulations and entrust qualied professionalagencies to handle all hazardous materials, ensuring 100% compliant disposal. Fornon-hazardous waste, including paper, plastics, and o?ce waste, we promote wasteclassication and management. By optimizing our waste management processes, wee?ectively increase the recycling rate of waste and reduce our environmental impact.

Air Pollution Control

Noise Pollution Control

Our company’s operations do not involve emissions of waste gases, and there is no direct air pollution issue. Throughout our R&D,production, and operations, we focus on optimizing processes, using eco-friendly materials, and promoting green, low-carbontechnologies to minimize our impact on the air. We are involved in supporting green and low-carbon development and relevantenvironmental policies, ensuring a harmonious relationship between our business and the environment.

In our general contracting projects, we strictly manage and control noise emissions at construction and installation sites, ensuringthat noise levels from living areas and various construction machinery comply with national and local standards. By implementingclear noise management measures, we supervise and guide relevant parties to ensure that noise levels at construction sites meet therequired standards. We have also installed professional monitoring equipment at noise monitoring points and regularly conduct noiselevel monitoring. Third-party authoritative agencies are commissioned to issue monitoring reports, which indicate that noise levels atall monitoring points strictly comply with national and local environmental protection standards.

Waste Disposal Methods

Category

DisposalMethod

Recyclable

Non-toxic, non-hazardous

Non-toxic and hazardousNon-recyclable

Collected and sent to regular waste collection stations

for disposalCollected regularly and sent to professional disposal

companiesCollected regularly and sent to professional disposal

companiesCollected and sent to specialized waste collection

stations for special treatmentCollected regularly and sent to professional disposal

companies for treatmentOld electronics, toner cartridges, ink (o?ce

environment)Construction waste, discarded building materials,discarded materials, packaging materials, auxiliarypackaging materials, scrapped equipment, etc. (on-site

at general contracting projects)

We strictly manage and control the handling of these

materials, ensuring that they are transported todesignated disposal sites. Open burning is prohibited,

and toxic or hazardous waste cannot be used as ll

material

Toxic and hazardous

Toxic and hazardous

Shanghai Huace Navigation Technology Ltd.

We ensure that domesticwastewater is treated tomeet standards beforebeing released into themunicipal sewage system,preventing untreatedwastewater from beingdischarged directlyand preventing watercontamination at thesource.

When replacing printer andphotocopier cartridges, westrictly prohibit washingtoner with water to avoidit entering stormwater orsewage systems. Tonermust be collected anddisposed of accordingto regulations to preventwater pollution.

We tightly control thetransport, use, andstorage of hazardouschemicals and oils toprevent leaks. In case ofa spill, we immediatelyreport the incident andtake emergency action toprevent contamination ofwater sources.

For our general contractingprojects, we closelymanage muddy and sandywastewater at constructionsites, strictly controlling itsdischarge to ensure thatconstruction activities meetenvironmental protectionrequirements and preventpollution of nearby water.

Standard domesticwastewater discharge:

Toner control in o?ceequipment:

Hazardous material andoil spill prevention:

Construction sitewastewater management:

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Biodiversity ConservationAt CHC Navigation, we take our corporate social responsibility in biodiversity conservation seriously, leveraging technological innovationand responsible management practices to minimize the environmental impact of our products and operations. We strictly comply withecological protection laws and regulations, ensuring that all project development and operations preserve ecological balance and avoidharm to natural habitats. We actively promote the use of high-precision navigation and positioning technologies in ecological monitoringand conservation. Our solutions deliver accurate data to support biodiversity protection e?orts in areas such as forest pest and diseasecontrol, forest re early warning, forestry surveys, and digital forestry, advancing the sustainable development of the forestry and grasslandsectors. In the eld of hydrographic measurement, our smart water conservancy solutions enable real-time monitoring and analysis ofhydrology, water resources, and water quality, providing critical data for water resource management and protection. Looking ahead, wewill continue to innovate and develop new solutions that support biodiversity conservation, contributing to the long-term protection of theEarth’s ecosystems.

6768

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

6970

7172

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Employee Employment and RightsAt CHC Navigation, we prioritize fairness in employment by building a comprehensive system that fully safeguards our employees’ legalrights. To enhance engagement and career satisfaction, we have developed a well-structured compensation system and continuouslyrene our incentive programs, aligning them with the Company’s evolving needs. These e?orts not only improve our employmentframework and strengthen employees’ sense of belonging, but also enhance our employer brand, support the creation of a robust talentpool, and lay a strong foundation for sustainable talent development.

Employee Employment

Compensation Management

Equity Incentive Program

We adopt a “talent-rst” approach and, in compliance with the Labor Law of the People’s Republic of China, the Labor Contract Law ofthe People’s Republic of China, and the Social Security Law of the People’s Republic of China, have created an Employee Handbook thatclearly outlines recruitment processes, contract termination, and other key procedures. This ensures that all recruitment procedures areconducted strictly according to regulations, preventing fraud and discrimination. We also adhere to industry CSR standards, including arm commitment to banning child labor and protecting minors’ rights. With a transparent recruitment process and a commitment to industrynorms, we improve recruitment e?ciency and ensure fairness in carrying out recruitment activities.

Guided by the principle of “rewarding e?ort and achievement”, we have developed and strictly enforced Performance ManagementMeasures that link employee compensation to skills, position, job performance, and work behavior. To ensure that our performancemanagement system remains aligned with the Company’s goals, we review and adjust it annually. Based on team dynamics, we use a mixof annual, semi-annual, quarterly, and monthly assessments to encourage both organizational and personal growth.

To strengthen the stability of our management and core technical teams and boost e?ciency, we have established a long-termincentive program for our senior executives and key technical sta?. Since our IPO, we have continuously implemented the equityincentive plan, aligning the interests of our executives and core technical team with those of our shareholders. This motivates ourmanagement and key employees to drive the Company’s growth and success together.

We implement quarterly and annual PBC assessments and management, with all employees presenting their performance.Our approach breaks down the Company’s overall strategic objectives step by step, reinforcing the principle of goal alignment.We combine job functions, KPIs, critical events, team and individual development goals, and values and behaviors, strengtheningthe performance-improvement-oriented principle.

By the end of the reporting period, weemploy about

2,046

people,both domestically and internationally.Of these,

67.5%

hold bachelor’s degrees, while

20.72%

have master’s ordoctoral degrees.

Key achievements

Setting Performance Goals

Recruitment and Hiring Regulations

FileManagementand SocialInsuranceJobResponsibilitiesRecruitmentCriteria

Probation andRegularization

Signing theEmployment

Contract

Reporting forDuty for New

Hires

Recruitment

Process

Conditions for

Not HiringRecruitment

Principles

Recruitmentand HiringRegulations

We encourage regular communication between supervisors and subordinates, with supervisors actively tracking their teammembers’ progress towards goals and providing guidance and support when issues arise.We also encourage managers to conduct formal one-on-one meetings with employees regularly, documenting key discussionpoints in the OA system to support employee growth.When new employees join, or when an employee is promoted or transferred between departments, managers shouldprovide performance coaching during the initial phase to help employees adjust to new environments and improve their workperformance.

We follow the principle of objectivity and fairness, conducting regular performance evaluations based on multiple factors, suchas annual performance and competency.The evaluation process includes an appeal mechanism, allowing employees to challenge the results if they have concerns,fully safeguarding their rights.

Performance evaluation results are key references for year-end bonuses, performance-based pay, instant rewards, specialincentives, salary adjustments, awards, promotions, job transfers, skill development, and even employee exits.Additionally, based on the evaluation results, we provide feedback and improvement suggestions to help employees grow anddevelop further.

Performance Implementation and Coaching

Performance Evaluation and Feedback

Application and Improvement of EvaluationResults

Goal Setting

Performance Feedback

Performance Execution

and Coaching

Performance

Evaluation

Departmental Goal

Breakdown

FeedbackDiscussion

Application of

Results

Key EventDocumentationEmployee Self-

Assessment

Group EvaluationDirect ManagerEvaluation

Public Announcementof Results

Mid-term ReviewDaily CoachingPBC Update

PerformanceComplaints

Individual Goal SettingCommunication

Signing the PBC

Performance Management Process

Performance Management Measures

7374

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Employee Training and Development

At CHC Navigation, we see our employees as a key driver of the Company’s continued growth. We place strong emphasis on employeetraining and development, actively fostering partnerships with educational institutions to help enhance skill sets across our workforce.To remain competitive, we o?er incentive mechanisms designed to retain core talent and boost long-term engagement. Through acomprehensive training system, an open, collaborative work environment, and hands-on learning opportunities, we ensure every employeehas the chance to realize their full potential, achieve personal goals, and grow together with the Company.

Huace Business School, an online learning platform, currently o?ers nearly

courses, providing employees witha wealth of learning resources.

Employee Promotion

Employee Training

To support talent development, reduce employee turnover, and encourage continuous growth, we have established an internal mobilitysystem, outlined in our Employee Handbook. This system creates clear opportunities for advancement for high-performing individuals ando?ers exibility for employees seeking role changes based on personal career goals or other needs.By optimizing workforce allocationand providing a fair, transparent career development path, we strengthen employees’ sense of belonging and loyalty to the Company.

We believe that talent development is the cornerstone of long-term growth. Guided by a talent-rst approach, we are committed to buildinga diverse, multi-tiered development system. For new hires, we o?er professional onboarding training and structured probation managementto support smooth integration into the Company. For fresh graduates, we have launched the “Shenghua (Upgrading) Training” program,which combines intensive training, selection processes, job rotations, performance assessments, and hands-on experience. This programenables graduates to quickly adapt, gain a solid understanding of our corporate culture, and build a strong professional foundation,e?ectively nurturing the next generation of talent.

In July 2024, we launched the “Shenghua (Upgrading) Training” program for our new campus recruits. This program o?erscomprehensive onboarding and training across various areas, including job-specic skills and knowledge. It helps new hiresquickly make the transition from students to professionals, enabling them to integrate seamlessly into the company andperform e?ectively in their roles.

In April 2024, we kicked o? the “Dongche Leadership Training” program for newly promoted managers. This program,featuring a series of management courses, helps these new leaders quickly adapt to their roles, gain essential team-buildingand management skills, and lay a strong foundation for e?ective leadership.

Shenghua Training 2024

Management Dongche Leadership Training 2024

In 2024, we granted the rst portion of the 2023 Restricted Stock Incentive Plan (covering

individuals) and thereserved portion of the same plan (covering

individuals). We also vested the rst and second phases of the 2022Restricted Stock Incentive Plan (covering

individual), the second portion of the 2021 Restricted Stock Incentive Plan(covering

individuals), the reserved portion of the 2021 Restricted Stock Incentive Plan - First Phase Vesting (covering

individuals), and the third phase of the 2020 Restricted Stock Incentive Plan (covering

individuals). Since ourIPO, we have rolled out

equity incentive plans, granting stock to a total of

2,723

individuals.

Key achievements

Key achievements

Case Study

Case Study

Campus Recruitment Training to Help New Hires Transition Smoothly

Management Training Program to Strengthen Leadership Skills

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

We place a strong emphasis on talent development and external collaboration. As part of our e?orts, we have built a solidpartnership with Shanghai Jiao Tong University. Both parties signed the Engineering Master’s and PhD Training Reform PilotUniversity-Industry Cooperation Agreement and the Engineering Master’s and PhD Joint Curriculum Development Agreement,which allows students to bridge their academic learning with real-world business practices. This partnership enables resourcesharing and co-development between the university and our company. Together, we aim to cultivate high-level, application-oriented talents while driving the industry’s high-end, intelligent, and sustainable development.

Signing Ceremony

University-Industry CollaborationTo cultivate high-level, application-orientedtalent with innovative thinking, globalperspective, and the ability to drive rapidindustry growth, we actively collaboratewith universities and research institutes.Through joint research projects andcollaborative initiatives, we createopportunities for students to developboth professional expertise and broadercapabilities. We also invite distinguishedprofessors from top universities to serve asexpert advisors, contributing to researchstrategy development and mentoringPhD students and postgraduates. Thesepartnerships strengthen our innovationcapacity, enhance employee skills, andmake more e?ective use of educationalresources, while supporting the cultivationof high-quality talent for society.

In October 2024, we arranged annual health checkups for employees who joined the company that year. To address thediverse health needs of our employees, we o?ered four di?erent checkup packages, tailored to identify specic health risksfor various groups. This approach helped improve the e?ectiveness of the health screenings.

Health Checkup Notication

Employee Health and Safety

At CHC Navigation, we place great importance on the health and well-being of our employees. In 2024, we took steps to continuouslyimprove our safety management systems and provide more comprehensive and e?ective health protection. We focused on enhancingemployees’ safety awareness and skills to ensure safe production practices, safeguard their rights, and fulll our corporate socialresponsibilities.

Occupational HealthWe fully comply with the OccupationalDisease Prevention and Control Lawof the People’s Republic of China andother relevant regulations. Our internaloccupational health managementsystem is well-established, ensuringthat health management processesare standardized. In the workplace,we have equipped our facilities withAED devices and rst aid kits to handleboth routine and emergency medicalsituations, ensuring the safety andhealth of our employees. We alsoregularly conduct health educationprograms to help employees improvetheir personal health management.

AED Devices (Left) and First Aid Kits (Right) Available at the Company

Case Study

Case StudyPartnership with Shanghai Jiao Tong University to Promote Collaboration

Annual Health Checkups to Support Employee Health

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

In December 2024, we invited a professional Traditional ChineseMedicine (TCM) team to visit our company and conduct wellnessactivities. In the morning, the doctors provided consultationsand body assessments for employees, o?ering personalizedhealth advice. In the afternoon, the TCM team hosted a wellnessseminar to teach employees how to prevent and manage commonwork-related health issues. They also demonstrated traditionaltechniques such as acupressure, cupping, and acupuncture,helping employees improve their health awareness and maintaina healthy lifestyle.TCM wellness event at the Company

Safety Training

We are dedicated to improving oursafety production standards. In 2024,we organized re drills and conductedvarious safety training sessions to giveemployees practical experience inhandling emergency situations. Theseinitiatives signicantly enhanced theirability to respond to emergencies andprotect themselves in unsafe conditions.

In April 2024, we organized re safety training and hands-on drills to enhance employees’ emergency response and evacuationskills. The training included both theoretical re safety knowledge and practical experience with re extinguishers. By combiningtheory and practice, we helped employees gain essential reghting skills and boosted their safety awareness in case ofemergencies.

Fire safety training drill

Key honors

Level 2 Excellent Enterprise Certicate of Safety Production

Standardization

Company Safety Production License

Employee Support and Activities

At CHC Navigation, we place high importance on employee care and engagement, striving to create a positive work environment thatfosters a strong sense of belonging and well-being. Through a range of structured initiatives, we enhance the workplace experienceby providing dedicated event spaces and organizing holiday celebrations. We incorporate a human-centered approach into dailyoperations, helping to build a warm and supportive atmosphere. Additionally, we maintain open communication channels to activelygather employee feedback and suggestions, ensuring that their voices are heard, valued, and reected in meaningful improvements.Employee Communication and Feedback

Employee Satisfaction Survey

We continuously improve our internal communicationand feedback system and have developed the“Tongshiba (Colleague Hub)” online platform. Thisprovides employees with an anonymous channelto voice their opinions, o?ering them the chance tocontribute ideas to the Company’s growth. Employeescan submit feedback on various topics, includingcompany products, services, and workplace matters,either anonymously or by revealing their identity.Additionally, our corporate WeChat system enablesemployees to communicate directly with colleaguesat all levels, including the Company’s chairman,ensuring open and e?ective communication across theorganization.To further protect employee rights, we have establisheda legally compliant labor union, which acts as a bridgebetween management and employees, maintainingclose and constant communication with our sta?.

To better understand employee perspectives on company facilities and the overall work environment, we developed and distributedthe 2024 Employee Satisfaction Questionnaire. The survey covered key areas such as the work environment, benets, and supportfacilities, enabling us to gather comprehensive feedback. Following a detailed analysis of the responses, we compiled a SurveyReport outlining both strengths and areas for improvement. Based on this feedback, we have implemented targeted enhancements tocontinually improve the employee experience.

“Tongshiba (Colleague Hub)” online platform development

Survey Topics Included in the Questionnaire

Issues withequipment and event

organization

Daily o?ce tasksEmployee mealsPublic Facilities in the

Work Area

Apartmentmanagement and

services

Case Study

Case Study

Traditional Chinese Medicine (TCM) Program for Employee Wellness

Fire Safety Training and Drills to Improve Self-Rescue Skills

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Employee Support and ActivitiesTo enrich employees’ daily lives and boost their happiness, we provide a variety of recreational spaces for employees to engage in sportsand activities. We also host regular sports competitions, rewarding outstanding employees and teams with special prizes to encourageactive participation and promote a healthy lifestyle.Employee Activities and Facilities

Varied Employee Activities

Football eld

Other recreational spaces

Competitive events

Annual Open Day for FamiliesTeam-building wall activities

Fitness equipment

Basketball court

Pool table

In March 2024, we organized an aromatherapy craftingworkshop for our female employees. They prepared materialsand crafted their own aromatherapy products. This hands-onactivity not only enhanced their skills but also encouragedinteraction and bonding among employees, fostering teamunity and a greater sense of belonging.

We also focus on creating a warm, welcoming work environment by organizing holiday events that increase employee engagementand strengthen their connection to the Company, showcasing our commitment to employee care.

In June 2024, ahead of the Dragon Boat Festival, we hostedan event where employees made Zongzi (traditional ricedumplings) and sachets at the company cafeteria. This activitynot only improved employees’ practical skills but also createda festive atmosphere, adding to the sense of community in theworkplace.

In December 2024, we organized a Christmas event where four employees dressed up as Santa Claus to deliver gifts andcheer to their colleagues. The fun-lled activity maintained the holiday spirit while also fostering a positive and upliftingimage for the Company.

Aromatherapy Crafting Session

Dragon Boat Festival Activity at the Company

Christmas Fun Activity

Case Study

Case Study

Case Study

Aromatherapy Crafting for International Women’s Day: Caring for Our Female Employees

Zongzi and Sachet Making for Dragon Boat Festival – Building Festive Spirit

Santa Claus Visits: Fun Employee Engagement at Christmas

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

Heartfelt Social WelfareAt CHC Navigation, we believe in sharing the benets of our success with society. Through volunteer work, donations, and other initiatives,we aim to promote fairness and progress. We are particularly committed to supporting youth education, taking tangible steps to fulll ourcorporate responsibilities.

In March 2024, we donated RMB 50,000 to the Toudaoshui Primary and SecondarySchool in Aihua Town, Yun County, Linchang City, Yunnan Province, as part of adonation agreement. The funds will go toward building sports facilities, including asynthetic running track, basketball court, badminton court, and volleyball court. Thisinitiative will address the growing need for physical activity among students, promotediverse physical education, and raise awareness about tness among young people.

On the Double Ninth Festival in 2024, the Companydonated RMB 50,000 to Dongfang Village in QingpuDistrict, Shanghai. In addition, the Company’swholly-owned subsidiary, Shanghai Sinov NavigationTechnology Co., Ltd., donated daily necessities worthRMB 9,450 to the elderly in the village. By deliveringthe donated supplies to the local area, the employeesof the Company brought warmth and care to the elderly.

In July 2024, we welcomed a group of junior reporters from Xianghuaqiao Street in Qingpu District. Our Vice President personallygreeted them, leading a tour of various hardware equipment and answering their questions. This event sparked the reporters’creative thinking while helping them develop valuable skills like observation, analysis, communication, expression, and practicalabilities.

Donation Certicate

Targeted Assistance for Dongfang Village in Qingpu District

Junior Reporters’ Tour

Disaster Relief SupportCHC Navigation leverages its expertise in positioning, navigation and mapping technologies to support disaster response e?orts,providing both equipment and skilled personnel to enable e?ective disaster monitoring. This helps reduce the risk of secondary lossesto human life and property. We are committed to fullling our corporate social responsibility and making an ongoing contribution to thesustainable development of society.

WaterConservancy

Mining

ood rescue and relief and levee breach closureenvironmental monitoring systems for

emergency rescue and systems for naturaldisaster monitoring and early warning

emergency river ow monitoring

irrigation areas, mountain pond detection,watershed monitoring, and reservoir safetymonitoring

levee inspection and emergency drillsreservoir capacity survey, coastal mapping,and underwater surveys and restoration.

lope monitoring of dams

at terrain tailings ponds and valley-typetailings ponds

surface displacement and deformation, groundwater level, and internaldisplacement

metal mining areas

landslide-prone areas

disaster monitoring and emergency responseearthquake disaster, forest re prevention, andood disaster

all-time forest protection and forest rangerpatrol management systems

mudslide-prone areas

landslides, mudslides, ground subsidence,ground cracks, surface settlement, and collapse

Application ScenariosApplication Scenarios

Application Scenarios

Application Scenarios

Application ScenariosApplication Scenarios

Application Scenarios

Application Scenarios

Application Scenarios

Application Scenarios

Application ScenariosApplication Scenarios

Application ScenariosApplication Scenarios

Application Scenarios

Application Scenarios

Emergency underwater terrainmeasurement solutions

Solutions for emergency survey

with unmanned surface vessels

Automated hydrological testing solutions

Solutions for small reservoir rainwater

monitoring and forecasting and dam safety

monitoring

Solutions for detection of hiddenrisks in water areasReservoir capacity solutions

Solutions for safety monitoring of hydropowerstation structures and reservoir bank slopes

Online tailings pond safety monitoringsolutions

Automated landslide monitoring and earlywarning system

Automated monitoring system for collapse

Emergency mapping solutions

Forest and grassland re prevention patrol

and monitoringSystem for identication and investigation ofgeohazard risk points

Automated landslide monitoring and earlywarning system

Open-pit mine slope safety monitoring solutions

Solutions for monitoring of subsidence in

goaf areas

Application of Our Products in Disaster Warning and Response Projects

Case Study

Case Study

Case Study

Donating to Build Sports Facilities for a School in Yunnan

Donate funds and supplies to extend warmth and care

Hosting Junior Reporters for an Industry Tour

GeologicalDisasters

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

About CHC Navigation

Integrity as the Foundation,Leading the Way with SmartNavigation

Innovation-DrivenDevelopment, Creating Valuewith Intelligence

Collaborative E?ciency, SmartPartnerships for a SharedFuture

Low Carbon Empowerment,Smart Protection for a GreenNew Planet

Working Together forProgress, Growing withIntelligence

Working Together for thePublic Good, Bringing Warmthto Society with Innovation

a landslide a?ected the Hexing and Hepingvillages in Liangshui Village, Tangfang Town,Zhenxiong County, Zhaotong City, Yunnan. Inresponse, we immediately deployed a teamof technical experts equipped with emergencysurveying equipment to the site. Our teamworked closely with local authorities to supportrescue and relief e?orts.

ooding struck the Beijiang River in GuangdongProvince. Our technical team, in collaborationwith the National Institute for Natural DisasterPrevention, joined a levee inspection teamin Qingyuan City to assess potential risks.We promptly shared our ndings with localauthorities, providing critical data that enabledthe implementation of timely preventivemeasures and helped reduce the impact of thedisaster.

heavy rainfall and severe storms a?ectedmultiple areas of Huangshan City, AnhuiProvince, resulting in signicant ooding. Ourtechnical team collaborated with the HuangshanHydrology and Water Resources Bureau toconduct urgent river ow measurements,delivering essential data to support local oodcontrol and disaster response e?orts.

continuous rainfall triggered a piping risk atpile number 19+800 along the Dongting Lakefrontline in Huarong County, Yueyang City,Hunan Province. At 17:48, following a failedemergency closure, the levee breached. Ourteam quickly joined the rescue e?orts, collectingabove-water and underwater terrain data,conducting levee inspections, and identifyingrisks such as piping and seepage. Our timelysupport helped stabilize the defense line andenabled a swift, accurate closure of the breach.

PS-SAR1000 360 ° SAR Monitoring System Monitoring the Slope

Levee Inspection Site

APACHE 4 Unmanned Surface Vessel in Operation

CHCNAV Technicians Processing Data

In April

In June

In July

InJanuary2024

Supporting Talent Development

To support talent development and promote educational advancement, CHC Navigation leverages its technology and resources toassist universities by providing advanced experimental equipment and nancial support. This initiative enhances students’ practicalskills while strengthening collaboration among industry, academia, and research. Through these e?orts, we contribute our expertise toaddressing complex societal challenges, reecting our ongoing commitment to corporate social responsibility.

In May 2024, Shanghai Taihexing Enterprise Development Partnership (LimitedPartnership), a person acting in concert with the Company’s controlling shareholderdonated RMB 2 million to the Education Development Foundation of a university inShanghai. The donation established the “Little Squirrel” project fund under the Collegeof Social Development and Public Policy, supporting research on social supportsystems for children with ADHD. The fund aims to provide more e?ective, science-based support for these children and to contribute to building a more inclusive society.In 2024, Shanghai Taihexing Enterprise Development Partnership (Limited Partnership),a person acting in concert with the Company’s controlling shareholder, donated RMB3 million to the education development foundation of a university in Nanjing. Thedonation is earmarked for the university’s CHC Navigation Talent Program, aiming tosupport the development of its talent cultivation initiatives.

In November 2024, we donated a handheld 3D laser scanner to a national-level experimental teaching demonstration centerat a university. This donation supports the training of future surveying professionals and enhances collaboration betweenindustry, academia, and research. It aims to help universities achieve more innovative outcomes in the eld of surveying andmapping.

RS30 laser Scanner Donation Event

Case StudyTechnical Support for Disaster Relief and Social Responsibility

Case Study

Case Study

Fund Donation to Support Scientic Research

Instrument Donation to Fulll Our Mission

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

Key achievements

IssueIndicator classicationName of quantitative indicator Unit202420232022

Corporategovernance

Board of Directors

Total number of Board of Directors members/

Among them: Number of female directors/

Among them: Number of executive directors/

Among them: Number of independent directors/

Commercialethics

Commercial bribery andcorruption incidents

Total number of con?rmed corruption cases/

Unfair competition cases

Total number of lawsuits/administrative penaltiesagainst fair competition

/

Total ?nes for violation of fair competition

RMB(10,000)

IssueIndicator classicationUnit202420232022

Environmentalmanagement

Number of violations of environmental laws and regulations/000Amount of major administrative penalties imposed by relevantdepartments such as the ecological environment departmentdue to environmental incidents during the reporting period

RMB(10,000)

Energy utilizationTotal amount of purchased electricityMWh5,601,429.25,406,212.34/

Governance performance

Environment performance

Society performance

IssueIndicator classicationName of quantitative indicatorUnit202420232022

Employeeemployment

Number of employeesTotal number of employees/2,0461,8441,734Total number of employees

Number of newly-recruitedemployees

/455//Number and proportion ofemployees by gender

Number of female employees/416387349Number of male employees/1,6301,4571,385Proportion of female employees%202120Proportion of male employees%807980

Employeeemployment

R&D departmentpersonnel

Total number of R&D personnel/681615554Proportion of R&D personnel%3433.2832Number and proportion ofemployee resignations

Number of employee resignations/253//Employee turnover/resignation rate%12//

Employee rights& interests andwelfares

Protection of basic rightsand interests

Employee social security paymentcoverage rate

%100100100DiscriminationConrmed incidents of discrimination/000Forced laborConrmed incidents of forced labor/000Child laborConrmed incidents of child labor/000Employeesafety

Occupational safetytraining

Number of safety drills (re, toxic gasleak, etc.)

/21/Work-related injury

Number of work-related deaths/000Occupational disease incidence%000Talenttraining anddevelopment

Sta? training assessment

Total number of training sessionsthroughout the year

/527396280Number of employees trained/20461,8441,734Employee training coverage%100100100

R&D innovation

R&D investment

R&D expenditure

RMB(10,000)

46,901.9146,211.31 40,304.60Proportion of total R&D expenditureagainst operating revenue

%14.4317.2518.02Intellectual property

Number of patents held/452353273Number of invention patents held/183162156Number of software copyrights held/333315253Product qualityProduct quality

Annual amount of damages involvedin major safety/quality liability incidentsrelated to products and services

RMB(10,000)

Data securityand customerprivacy

Data security and customerprivacy

Number of conrmed incidents of datasecurity

/000Specic amount involved in incidentsof data security

RMB(10,000)

Number of conrmed incidents ofcustomer privacy breach

/000Specic amount involved in incidentsof customer privacy breach

RMB(10,000)

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Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

Index of Indicators

Level-1 topicLevel-2 topicRelated chapters

1Combating climate change

Management of risks and opportunities related toclimate change

Environmental protection and climateresponseAssess the adaptability of the Company's strategyand business model to climate changeTransformation plans and measures to addressclimate-related risks and opportunities, and progressPractices in reducing Greenhouse gas emissions

Energy management and resourceconservation2Pollutant emissions

Information of pollutant discharge

Waste emission managementPollutant discharge and treatmentEmission reduction targets3Waste disposal

Information of treatment

Waste emission managementEmission reduction targets

Ecosystem andbiodiversity conservation

Protective measures within the area

Biodiversity conservationProtective and restoration measures

Environmental compliancemanagement

Risk management

Environmental protection and climate

responseEmergency6Energy utilization

Status of use

Energy management and resource

conservationClean energy7Water resource utilizationStatus of use

Energy management and resource

conservation8Circular economy

Specic measures

Energy management and resource

conservationProgress9Social contributionContributionHeartwarming social welfare initiatives

10Innovation driven

Strategic goalsInnovation drivenSpecic situationInnovation drivenR&D results

Innovation driven, intellectual property

protectionInnovation impactInnovation driven

Scientic andtechnological ethics

Internal managementInnovation drivenViolationsNot involved

Level-1 topicLevel-2 topicRelated chapters

12Supply chain security

Risk management

Responsible procurementSupport measuresImprovement measures

Treat small and medium-sized enterprises equally

Unpaid amount

Responsible procurementSpecic situation

Product and service safetyand quality

Management system

Product qualityQuality certi?cationMajor accidentsNot involvedAfter-sales service

Customer rights and interestsAccessibility

Data security andcustomer privacyprotection

Management system

Information securitySecurity incidentsLeakage16Employees

Employee recruitmentEmployee employment and rightsOccupational health and safetyOccupational health and safetyCareer development and trainingCareer development and training

Stakeholdercommunication

Communication system

Investor relations managementSuggested channels

Anti-commercial briberyand anti-corruption

Management system

Business ethicsTraining performanceEvent19Anti-unfair competitionAdministrative penaltiesBusiness ethics

9192

Shanghai Huace Navigation Technology Ltd.Environmental, Social, and Governance (ESG) Report

Reader Feedback Form

Dear Reader,Thank you for taking the time to read the 2024 Environmental, Social, and Governance (ESG) Report of Shanghai Huace NavigationTechnology Ltd. To better serve you and other stakeholders, and to continuously improve our performance in fullling our corporate socialresponsibility, we sincerely welcome your feedback and suggestions. Your insights are valuable in helping us provide more meaningfulinformation and enhance our ESG practices.Multiple Choice Questions (Please tick the appropriate box)

1. How would you rate the overall quality of this report?

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2. How would you rate the report’s responses and disclosures on issues of concern to stakeholders?

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3. How do you think CHC Navigation performs in economic responsibility?

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4. How do you think CHC Navigation performs in environmental responsibility?

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5. How do you think CHC Navigation performs in safety management?

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6. How do you think CHC Navigation performs in employee responsibility?

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7. How do you think CHC Navigation performs in community responsibility?

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Open-ended QuestionsDo you have any comments or suggestions regarding CHC Navigation’s social responsibility performance and this report?

8. Are the information, indicators, and data disclosed in the report clear, accurate, and complete?

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9. Do you think the content arrangement and layout design of this report are easy to read?

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