玲珑轮胎(601966)_公司公告_玲珑轮胎：2024年可持续发展报告(英文版)新浪财经

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玲珑轮胎：2024年可持续发展报告(英文版) （下载公告）

公告日期:2025-04-25

2024 Sustainability Report

Shandong Linglong Tyre Co., Ltd.

No. 777 Jinlong Road, Zhaoyuan City, Shandong Province

https://www.linglong.cn

About This Report 01Chairman's Message 02Linglong Tire's SustainabilityHighlights in 2024 03Sustainability Planning and Progress 04Sustainability-related 05Honors and Recognitions in 2024About Linglong Tire 06Assessment of the Materialityof Sustainability Topics 11Process of Topics' Materiality Analysis 12Due Diligence and Stakeholder Communication 12Conclusion of Materiality Analysis 14Sustainability Management System 17Sustainability Concept 18Sustainability Management Structure 19

Green Linglong,Promoting Sustainable Development 20Climate Change Tackling 21Environmental Management 26Energy Management 29Circular Economy 32Water Resource Management 35Emission and Waste Management 37Ecosystem and Biodiversity Conservation 40

Smart Linglong,Crafting High-Quality Tires 42Innovation-driven 43Safety and Quality of Products and Services 48Data Security and Customer Privacy Protection 53Supply Chain Management 55Harmonious Linglong,Contributing to a Bright Society 58Work Safety 59Employees 62Community Co-construction and Public 68Welfare Charity

Contents

Robust Linglong,Consolidating Operation Foundation 71Corporate Governance 72Business Ethics 76Compliant Operation 79

ESG Data Sheet and Notes 81Report Standard Index 88Glossary 93Assurance Statement 95

EnvironmentalSocialGovernance

Reporting ScopeThe scope of this report covers Shandong Linglong Tyre Co., Ltd. and its subsidiaries, which are shown in thefollowing table. Unless otherwise stated, the scope is consistent with that of the Consolidated FinancialStatements of Linglong Tire (stock code: 601966.SH) in the same period. Full name Short name Shandong Linglong Tyre Co., Ltd. Linglong Tire, Company Jilin Linglong Tyre Co., Ltd. Jilin Linglong Dezhou Linglong Tyre Co., Ltd. Dezhou Linglong Hubei Linglong Tyre Co., Ltd. Hubei Linglong Guangxi Linglong Tyre Co., Ltd. Guangxi Linglong Linglong International Tire (Thailand) Co., Ltd. LLIT Linglong International Europe d.o.o. Zrenjanin LLIE

Reporting PeriodThe reporting period is from January 1, 2024, to December 31, 2024. Unless otherwise stated, the data in thisreport is those within this period.

Basis of Preparation

This report has been prepared in accordance with the Guidelines No. 14 of Shanghai Stock Exchange forSelf-Regulation of Listed Companies – Sustainability Report (Trial), the Guidelines No. 1 of Shanghai StockExchange for Self-Regulation of Listed Companies – Standard Operation (Revised in December 2023), and withreference to the Enterprise Sustainability Disclosure Standard — Basic Criteria (Trial) by the Ministry of Financeof the People's Republic of China, the GRI Sustainability Reporting Standards (2021) ("GRI Standards") by theGlobal Sustainability Standards Board (GSSB), the standards of the Sustainability Accounting StandardsBoard (SASB) ("SASB Standards"), the IFRS Sustainability Disclosure Standard 2 — Climate-related Disclosures(June 2023) (IFRS S2) by the International Sustainability Standards Board (ISSB), and the United NationsSustainable Development Goals (SDGs).

Report Preparation Principles

Accuracy This report is intended to be as accurate as possible. To be specific, the data standard, calculation basis,

and assumptions have been explained in the quantitative information to guarantee that the calculationerror range will not mislead the users. Quantitative information and notes are detailed in the sections ofthis report. The Board of Directors warrants that there are no false records, misleading statements or material omis-

sions in this report.Balance The information in this report reflects objective facts and impartially discloses positive and

negative information related to the Company. During the reporting period, no negative events

requiring disclosure were found to be undisclosed.Clarity This report is released in both simplified Chinese and English. This report contains informa-

tion such as tables, model diagrams, and a glossary of proper nouns as supplements to

facilitate a better understanding by stakeholders. To facilitate faster access to information,

this report provides a table of contents and a standard index.Comparability This report discloses key quantitative performance indicators and, wherever possible,

historical data. The statistics and disclosure of the same indicator in this report are consis-

tent from one reporting period to another; any change shall be fully explained in the notes, to

enable stakeholders to conduct meaningful analyses and assess the development trend of

the Company's sustainability performance level.Integrity The scope of the disclosure object shall be in line with that of the Company's Consolidated

Financial Statements.Materiality The Company identified the material topics related to its operations that are of concern to stake-

holders such as investors, and these topics serve as the key focus of this report. In this report, the

reporting on material topics takes into account both the industry characteristics involved in the

Company's operations and the regional features tied to the Company's location. For a detailed anal-

ysis process and results of the material topics, please refer to the "Assessment of the Materiality

of Sustainability Topics" section of this report. This report highlights environmental, social and

governance (ESG) matters that may have a significant impact on investors and other stakeholders.Timeliness This is an annual report covering the period from 1 January 2024 to 31 December 2024. The

Company publishes this report and its annual report at the same time to provide stakehold-

ers with timely information for decision-making.Verifiability The cases and data in this report were taken from the original records or financial reports of

the Company's actual operations. The data and information in the report are all traceable

and verifiable.

Address: No. 777, Jinlong Road, Zhaoyuan City, Shandong Province, China

Tel.: 0535-8242726E-mail: linglongdsb@linglong.cn

About This Report

This is the eighth Sustainability Report presented by Shandong Linglong Tyre Co., Ltd. ("Company" or "Linglong Tire") with an aim to disclose to all stakeholders the Company's sustainability philosophy in operation, management methods, implemented work and achieved results.

Notes on DataThe financial data in this report is cited from the 2024 Annual Report of Shandong Linglong Tyre Co., Ltd. Theother disclosed text, cases, and data are all from the original records of the Company's actual operations. Incase of any discrepancies with the Company's annual financial report, the annual Consolidated FinancialStatements financial report shall prevail. Unless otherwise specified, the currency amounts involved in thereport are denominated in RMB.For the calculation of quantitative information in this report, the data standard, calculation basis, andassumptions have been stated, and the statistical and disclosure methods for the same indicator are keptconsistent across different reporting periods. If there are changes in the statistical and disclosure proce-dures, sufficient explanations are provided in the report's notes to ensure that the data disclosure does notmislead stakeholders.

Confirmation and ApprovalThis report was approved by the Board of Directors on April 24, 2025.

External Assurance

This report has been assured by SGS as an independent third party and the assurance statement is attached.

Access to this Report

This report is released in electronic format on the official website of the Shanghai Stock Exchange, ChinaSecurities Journal, Shanghai Securities News, Securities Times, Securities Daily, and the Company's officialwebsite.If you have any suggestions for this report, please contact us through the following methods:

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

About This Report Chairman's Message Linglong Tire's Sustainability Highlights in 2024 About Linglong Tire Assessment of the Materiality of Sustainability Topics Sustainability Management System Environmental: Green Linglong, Promoting Sustainable Development Social: Smart Linglong, Crafting High-Quality Tires Social: Harmonious Linglong, Contributing to a Bright Society Governance: Robust Linglong, Consolidating Operation Foundation ESG Data Sheet and Notes Report Standard Index Glossary Assurance Statement

Chairman's Message

Shandong Linglong Tyre Co., Ltd.

Chairman, President

In 2024, ongoing regional conflicts and intensified trade frictions worldwide have exacerbated the uncertainties of global development. However, the inherent resilience of human society continues to propel theentire social structure forward at a rapid pace. A series of achievements representing the future development directions of humanity, such as artificial intelligence, low-altitude economy, embodied intelligence,quantum technology, and lunar exploration, are dazzling and eye-catching. The gradual recovery of the global economy and the rapid development of new energy vehicles (NEVs) have also injected new vitality intothe global tire market, with terms like "sustainability", "circularity", and "green and low-carbon" gradually becoming new labels for the tire industry.As a green and low-carbon tire company, Linglong Tire, under the guidance of the national "Carbon Peak and Carbon Neutrality" strategy and the global trend of sustainable development, is firmly committed to apath of coordinated development between green environmental protection and high-quality growth. It actively constructs a Linglong value system that is "green", "harmonious", "smart", and "compliant", and contin-uously promotes the development of "new-quality productive forces". The Company has achieved remarkable success in various fields, including ESG, and is leading the sustainable development of the industry.

Breaking through upheaval and seizing opportunity, Linglong Tire has created a milestone achievement in sustainability in 2024. The successful implementation of multiple projects signifies that the Company's medium-and long-term strategic plans have yielded phased results. These achievements have garnered high acclaim from international ESG rating agencies, original equipment manufacturers (OEMs), and customers.Looking ahead to 2025, as a responsible enterprise, Linglong Tire will persistently pursue a path of sustainable development and will steadfastly focus on areas such as green and clean production, low-carbon and circu-lar products, intelligent transformation, and the construction of a green supply chain. Through concrete actions, the Company will drive high-quality sustainable development for the Company, the industry, and the broad-er society and economy.

Exploring the Full Life Cycle of Near-Zero Carbon Prod-uctsIn terms of the environment, Linglong Tire actively explores green,low-carbon, and efficient production models, sets a carbon neutralitytarget for 2050 and defines the implementation path for carbon emis-sion reduction. The Company develops eco-friendly products, andempowers the realization of the "carbon peaking and carbon neutrality"goals.In 2024, LLIE officially went into mass production, which is an import-ant milestone in the sustainability of Linglong Tire. LLIE advocates a"four-new" factory model of "green, clean, civilized, and lean". Cut-ting-edge technologies such as artificial intelligence, industrial robots,and industrial big data are integrated into the design and constructionprocess. While ensuring high quality, LLIE achieves greener, smarter,and more efficient production, setting an example for the green andintelligent development of the entire industry.Also in 2024, Linglong Tire launched the industry's first eco-friendlygreen tire that uses itaconate bio-based rubber, recycled carbon black,and other sustainable materials, with a content of up to 79%. Thisreduces the dependence on traditional petrochemical raw materials. Italso improves the recyclability of the product, reduces carbon emis-sions throughout the entire life cycle of the product, and helps theentire industry explore the path of product sustainability.

Strengthening the Foundation for the Healthy andCompliant Operation of the Enterprise

In terms of corporate governance, Linglong Tire firmly operates inaccordance with laws and regulations, adhering to the bottom lineof integrity, and continuously promoting ESG and sustainabilitymanagement, thereby ensuring the continuous, standardized, andhealthy development of the Company. In 2024, Linglong Tirefurther optimized the ESG management system and established adedicated ESG department to comprehensively promote theachievement of various ESG goals, and to optimize corporategovernance.Internally, Linglong Tire develops and continuously improves aseries of management systems and processes to ensure compli-ant operation. The Company firmly opposes illegal and non-com-pliant behaviors including corruption, commercial bribery, andmoney laundering. Linglong Tire treats minority shareholdersequally and brings sustainable returns to investors.Externally, Linglong Tire implements a Green Supply Chain Pro-gram to enhance compliance governance, integrating green man-ufacturing, product lifecycle management, and extended produc-er responsibility into our supply chain management framework.This integration expands the reach and depth of our supplynetworks, strengthening the Company's global competitiveness.

Constructing a Win-win Responsibility System for BothEnterprise and Society

In terms of society, Linglong Tire adheres to a people-orientedapproach, working together with employees and society to achievewin-win results and promote the harmonious development of theCompany.Linglong Tire places great emphasis on the significant advantagesthat accumulate from the personal development and growth of theemployees. On the basis of safeguarding the legitimate rights andinterests of the employees, the Company provides them with richtraining opportunities and broad career development platforms.Linglong Tire promotes the personal development of employees viawelfare benefits, training sessions, and multiple promotion channels,which in turn contributes to the continuous progress of the Company.Linglong Tire also believes that the harmonious developmentbetween enterprise and society is the foundation for existence. Byestablishing a reliable after-sales service system that consumers cantrust, Linglong Tire actively safeguards consumer rights and interests,and also encourages the subsidiaries to participate in local communi-ty development and public welfare activities. Furthermore, LinglongTire builds a mutually beneficial and win-win mechanism across theentire industry chain, including suppliers, distributors, and consum-ers, thereby enhancing the resilience for sustainable development.

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Linglong Tire's Sustainability

Highlights in 2024

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.About This Report Chairman's Message Linglong Tire's Sustainability Highlights in 2024 About Linglong Tire Assessment of the Materiality of Sustainability Topics Sustainability Management System Environmental: Green Linglong, Promoting Sustainable Development Social: Smart Linglong, Crafting High-Quality Tires Social: Harmonious Linglong, Contributing to a Bright Society Governance: Robust Linglong, Consolidating Operation Foundation ESG Data Sheet and Notes Report Standard Index Glossary Assurance Statement

Sustainability Planning and Progress

Centering on the development of a "Green Linglong", "Smart Linglong", "Harmonious Linglong", and "Robust Linglong", Linglong Tire makes efforts to build itself into an international tire company with advanced technology, complete supporting facilities, environmental friendliness, high productionefficiency, excellent product quality, and strong competitiveness by developing a 2030 sustainability strategy plan, identifying a new positioning, and strengthening new advantages. The Company promotes the process of the 2030 sustainability plan and helps to achieve sustainability goals.

Note? "Four-orientation Factories" refer to automated, digital, intelligent, and unmanned

factories.

Key indicatorCarbon emission intensity per unit of productPhotovoltaic (PV) power generationApplication of sustainable materials in tiresNumber of four-orientation factories

Number of lighthouse factories

Annual completion rate of informatization projectsCustomer satisfactionRecordable work-related injury rate per million working hoursProportion of newly recruited female employeesProportion of employees with signed collective contractsSigning rate of the Anti-bribery Agreement with business partnersCoverage of directors' business ethics training

Environmental

Social

Sustainabilitygovernance

Goal

1.5% decrease in 2024 compared to 2023

9% of PV power generation in 202485% by the end of 2028Construction of four-orientation factories from new factories

Two domestic lighthouse factories by 2030

100%Not less than 97.75% in 2024< 1.0 time per million hours in 2030> 15% in 2024100% in 2024100% in 2024100% in 2024

Progress in 2024

0.94 tCO

/t, a 1.95% decrease compared to 2023

9.19%

79%A total of 4 four-orientation factories in 2024The full-process data-driven intelligent factory for high-end tires ofLinglong Tire has been selected for the Excellence-level Smart Facto-ry (First Batch) project of the Ministry of Industry and InformationTechnology of ChinaAutomated logistics system in the Serbian factory100%

99.64%

1.21 times per million hours

16.08%

100%100%100%

Progress

CompletedCompletedIn progressIn progress

In progress

CompletedCompletedIn progressCompletedCompletedCompletedCompleted

Note? "Lighthouse Factory" program, jointly selected by World Economic Forum Davos and McKinsey & Company, is known as one of the "World's Most Advanced Factories". Lighthouse Factory is regarded as a role model

for "digital manufacturing" and "globalization 4.0", representing the highest level of intelligent manufacturing and digitalization in the global manufacturing sector today.

Note? This refers to the construction of existing and new factories according to

the standards of lighthouse factories.

Aspect

Linglong Tire's Sustainability Goals and Progress in 2024

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Honors &RecognitionsThe Company's case was chosen as a modelsustainability case in the Chinese automotiveindustry in 2024.

The Company was selected in the list of "theTOP500 Brand Ranking in China" released byWorld Brand Lab.

In November 2024, the Company won the "2023Annual Golden Information Disclosure Award - JinNiu Award" from the China Securities Journal.

The Company won the "Second Guoxin Cup · ESG JinNiu Award" from the China Securities Journal.

The Company was selected in the "Value 100" list ofthe Second E-Board ESG+8.

The Company's case was selected as a "Typical Caseof Global Brand Sustainability" by the OrganizingCommittee of the Global Brand Innovation and Devel-opment Think Tank Forum.

The Company won the Jin Wu Award in 2024 and hasreceived the 5A rating for the performance of itsboard secretary for three consecutive years.

In 2024, the Company was awarded the 5A rating forthe performance evaluation of its board secretary.

The Company won the Golden Quality Award - Excel-lent Board Secretary Award from the Shanghai Securi-ties News in 2024.

In 2024, the Company's case was selected as anexemplary practice case among listed companies'board of directors.The Company won the Ernst & Young SustainableOutstanding Enterprise Award.

In 2024, the MSCI ESG rating of Linglong Tirewas at BB level, ranking at a leading level amongChinese tire companies.

The SAQ 5.0 rating was B95.

As of December 2024, the ESG evaluation of ChinaSecurities Index for Linglong Tire was at AA level.

In 2024, the Sino-Securities ESG comprehensiverating for Linglong Tire was at AA level, with ESGperformance ranking first among Chinese tirecompanies.

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Sustainability-related Honors and Recognitions in 2024

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

About

Linglong Tire

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Note? The total number of current employees is consistent with the annual financial report of the Company.

LINGLONGCULTUREEnterprise spiritSolidarity, hard-working,striving for first-class enterprise

Enterprise policyCenter on R&D, grasp management,build famous brand, increase benefitManagement idea

Make China famous-brand product, establish

the world's first-class enterpriseUser satisfaction is Linglong Tire's work

standard

Company Profile

Founded in 1975, Shandong Linglong Tyre Co., Ltd. is a professional, large-scale and technology-oriented tire manufacturer integrating the design, develop-ment, manufacturing and sale of tires.

Linglong Tire Basic InformationChinese name 山东玲珑轮胎股份有限公司English name Shandong Linglong Tyre Co., Ltd.Stock code 601966.SH (listed on the main board of the Shanghai Stock Exchange)Headquarter Zhaoyuan, ShandongMain business Tire design, development, manufacturing and sales

Main products

Product type: Passenger vehicle and light truck radial tires, truck and bus radial tires,

and off-road tires Product applications: Widely used in passenger cars, commercial vehicles, and con-

struction machinery vehicles, and sold to 173 countries and regions around the world

including Europe, the Middle East, the Americas, the Asia-Pacific region, and AfricaBusiness network 28 subsidiaries, 7 R&D institutions, and 7 manufacturing bases globallyOperating income RMB 22.058 billionTotal output 85,447.1 thousand tiresTotal assets RMB 47.083 billionTotal number of current employees 17,783

Tire Manufacturing Process of Linglong Tire

This process is the preparation of tire components,including the tread, sidewall, carcass, belt, bead, liner,cap ply, etc. All the components produced in this stepwill be transported to the tire building process forassembly.

The tire building process is to assemble all compo-nents with the aid of the tire building machine to gener-ate the green tire. After the appearance and weightof the green tire are checked, it will be transported tothe curing process for vulcanization.

Mixing

The curing process is to load the green tire intothe mold with the specified size, pattern and logo,and turn the green tire into a finished tire with thecorresponding pattern and sidewall logo through theappropriate time, pressure and temperature in thevulcanization machine. After vulcanization, the fin-ished tire is transported to the finished productinspection process for testing to ensure that thequality of the tire meets the requirements.

Curing

In the process of designing new tire specifications, tiresmust undergo rigorous safety tests such as high-speeddurability. According to the performance requirementsof different models, roll resistance, noise and otherperformance tests will be carried out, as well asvarious subjective and objective evaluation testssuch as dry and wet braking and handling stability forreal vehicles.

Tire testing

This process is the inspection process of finishedtires. After tire appearance is qualified by 100% visualinspection, tire dynamic balance & uniformity detec-tion and X-ray detection are carried out. After pass-ing the inspection, the tire is transported to thefinished product warehouse for shipment.

Finished products inspectionComponent preparation

Tire building

How to manufacture a tire

The mixing process is the first process of tire produc-tion, which is the process of mixing and dispersing rawmaterials such as raw rubber, reinforcing filler, antioxi-dant and vulcanizing agent in the mixing machine. Theprocess is under comprehensive and precise controlranging from material formulation, feeding and mixing totesting, storage and release through PLC system andMES system. The comprehensive error prevention tech-nology is implemented at key procedures to createrubber materials with different properties for differenttire components. Then the rubber materials are releasedto the next process after passing the inspection.

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Strategic Layout

Serbia

Shandong Linglong Tyre Co., Ltd.

Jilin Linglong Tyre Co., Ltd.Shandong Linglong Tyre Co., Ltd.Dezhou Linglong Tyre Co., Ltd.Shaanxi Linglong Tyre Co., Ltd.Hubei Linglong Tyre Co., Ltd.Guangxi Linglong Tyre Co., Ltd.

Linglong Tire Research Institute (Zhaoyuan, Yantai)Beijing Linglong Research InstituteShanghai Linglong Research InstituteJinan Linglong Research Institute

U.S. Linglong Research Institute

German Linglong Research Institute

Linglong International Europe d.o.o. Zrenjanin

Linglong International Tire (Thailand) Co., Ltd.

Brands of Linglong Tire

Linglong Tire firmly promotes the implementation of the "7+5" global strategic layout (7 manufacturing bases inChina and 5 manufacturing bases overseas). The Company creates a low-carbon and sustainable industrial chain,and implements the innovation-driven development strategy. Linglong Tire accelerates the construction of "auto-mated, digital, intelligent, and unmanned" four-orientation factories, promotes lean production and refined man-agement, to consolidates product quality, and upgrades the supporting service and new retail strategies. TheCompany promotes the localization of R&D, marketing, management and manufacturing teams, and optimizes theallocation of talents. Linglong Tire also enhances employees' capabilities, and rejuvenates the brand image, tobecome a technology-oriented tire manufacturer with world-class technology, management and brand influence.

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Organization Chart

Boardof Directors

Nomination Committee

Strategic Decision-making

Committee

Audit Committee

Audit Department

Sustainable Development

CommitteeCompliance Management

Committee

President

Remuneration and Appraisal

Committee

Technical Management Depart-mentPlanning and Supply Chain Man-agement DepartmentHuman Resources DepartmentQuality Management CenterGlobal Central Research InstituteGlobal Marketing CenterLean Manufacturing Manage-ment CenterFinance DepartmentProcurement DepartmentMarketing Department

General Meetingof Shareholders

Secretary of the Board

of Directors

Board of Directors Office

President's Office

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Assessment of the Materiality

of Sustainability Topics

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Linglong Tire continuously strengthens the identification, response, and management of the impacts, risks, and opportunities related to the Company'sdaily operations. The Company actively conducts sustainability-related due diligence. Based on the identification and analysis of material topics, LinglongTire continuously promotes the management of the impacts and risks related to material topics, thereby driving the Company's sustainable development.Linglong Tire adheres to the establishment of a long-term and effective stakeholder communication mechanism and formulates the Stakeholder Communi-cation System. It aims to enhance communication and cooperation with stakeholders by understanding and addressing their reasonable needs and expec-tations, thereby strengthening business decision-making, management practices, and the Company's sustainability capabilities through collaborativeengagement.In 2024, according to the business and operation characteristics, the Company identified key stakeholders including employees, shareholders and inves-tors, customers and users, agents and suppliers, government and other regulators, etc. The Company communicates with stakeholders through a varietyof channels, including symposiums, seminars, the Company's website, and social media. The Company actively responds to the opinions and suggestionsof stakeholders.

Due Diligence and Stakeholder CommunicationProcess of Topics' Materiality Analysis

Process of Materiality Analysis of Linglong Tire

Based on the industry it is in and the characteristics of its business, Linglong Tire regularly identifies, analyzes and manages topics' materiality. In 2024,the Company, based on the information disclosure requirements of the Shanghai Stock Exchange (SSE), policy trends, daily communication with stakehold-ers, and the key concerns of rating agencies, identified and screened the material topics of the Company, and analyzed and confirmed the materiality ofthese topics.

?The Company understands itsown activities and businessrelationships, as well as its strate-gic development plan.?The Company understands the

external objective environment,including relevant laws, regula-tions and regulatory policies.?The Company understands the

major affected stakeholders.

?The Company, by combining

standard benchmarking andpolicy analysis, conductspreliminary identification andscreening of sustainabilitytopics related to the Company.This includes adding indus-try-specific topics based on the21 topics in the Guidelines andexcluding topics with low indus-try relevance.?The Company analyzes the

actual and potential impacts,risks and opportunities relatedto material sustainability topics.

?The Company sets reasonable

and appropriate assessmentmethods and materiality assess-ment thresholds, evaluates theimpact materiality and financialmateriality of the topics, anddetermines the ranking of thetopics' materiality.

?After being reviewed and con-

firmed by the Company's Board ofDirectors, the Company makes keydisclosures in the report regardingthe topics with relatively highmateriality in 2024.

Stakeholder Communication Methods and Frequencies of Linglong Tire

Specific opinion channelsIrregularly through the Company's hotline and e-mail.The Company receives opinions and suggestions put forward by stakeholders.

Information disclosure

Regularly or irregularly through the Company's website, annual reports, announcements, etc.The Company provides information on the Company's operation status, policies, and activities.

Dialogue and negotiationRegularly or irregularly organizing symposiums, seminars, and other activities.The Company conducts targeted face-to-face communication.

Internet and social media

Irregularly through online channels like the Company's website and social media.The Company has online interactions with stakeholders.

Topic reportingUnderstanding thebackground ofactivities and busi-ness relationships

Establishinga topics list

Assessment andconfirmationof topics' materiality

Main Stakeholders of Linglong Tire and Their Communication

Main stakeholders

EmployeesShareholders andinvestors

Customers andusers

Agents andsuppliers

Government andother regulators

Local communitiesand the public

Employee rights and benefitsWorkplace diversity and inclusionEmployee training and developmentWork safety

Trade unions and employee congressesAnnual training and regular meetingsIrregular meetingsEmployee satisfaction surveysCorporate e-mailInternet and social media

Compliant operationBusiness ethicsCorporate governance

General Meeting of ShareholdersSymposiums, seminarsPerformance exchange meetingsBoard of DirectorsThe Company's website, annual reports,announcements

Safety and quality of products and servicesCircular economyEmission and waste managementClimate change tacklingWorkplace diversity and inclusionDigital transformationR&D innovationSupply chain managementBusiness ethics

Development of product quality management systemSetting of product quality qualification rate indicatorsEstablishment of customer and user communicationplatformsCustomer satisfaction surveysRegular/irregular telephone follow-ups or e-mailsSustainability Assessment Questionnaire (SAQ 5.0)Development and application of intelligent retailsystemsEstablishment of a global R&D system

Communicationmethods/channels

Topics of concern

Supply chain managementSafety and quality of products and servicesDigital transformationBusiness ethics

Evaluation of agents and suppliersTraining for agents and suppliersTelephone communication and feedbackDevelopment and application of intelli-gent retail systems

Compliant operationBusiness ethicsCorporate governanceEmission and waste managementClimate change tacklingWork safety

Water resource utilizationCircular economyEmission and waste managementClimate change tacklingBiodiversity conservationWork safetyCommunity co-construction andpublic welfare charity

Regular communication and reportsInstitutional inspectionsPolicy explanation meetings of regula-tory authoritiesThe Company's website, annual reports,announcements

Energy conservation and emis-sion reduction projectsRecycled water useDevelopment of recycled rawmaterialsEnvironmental protection projectsEstablishment of work safetymanagement systemsPublic welfare donations andvolunteer service activities

Conclusion of Materiality Analysis

Major Changes in Linglong Tire's Material Topics in 2024

Climate change mitigation andadaptation

Raw material and water resourcemanagement

Cleantech opportunities

Responsible procurementProduct quality managementCustomer relationship managementOccupational health and safety

——

Climate change tackling

Water resource utilization

Circular economy

Supply chain managementSafety and quality of productsand servicesWork safety

Data security and customerprivacy protection

R&D innovation

Environmental compliancemanagement

In 2024, by combining the results of stakeholder communication and the opinions of internal and external experts, the Company analyzed the impact andfinancial materiality of the 21 topics it had screened out. The Company ranked the materiality of these topics, and finally obtained a material topic matrix.This report focuses on disclosing the relevant management and performance of the material topics.The Company analyzed the actual and potential impacts, risks, and opportunities of the identified topics, evaluated the financial and impact materiality ofeach topic, and finally summarized the analysis and ranking results of the Company's material topics. This will facilitate the Company conducting furthermanagement according to the materiality of each topic.

To align with regulatory requirementsand the key concerns of ratings, opti-mized the topic description based onthe Company's own managementpractices

To align with regulatory requirements,added new topics

To align with regulatory requirements,adjusted the topic description based on theCompany's own management practices

Materiality Matrix of Linglong Tire in 2024

Both having financial materialityand impact materiality

Having financial materialitybut not having impact materiality

Having impact materialitybut not having financial materiality

Having neither financial materialitynor impact materiality

? Climate change tackling

? Business ethics

? R&D innovation

? Circular economy? Energy management

? Workplace diversity and inclusion? Emission and waste management

? Work safety? Digital transformation? Intellectual property

protection

? Employee rights and benefits

? Supply chain management? Corporate governance? Data security and customer privacy protection

? Environmental compliance management

? Compliant operation? Employee training and development

? Water resource utilization

? Safety and quality ofproducts and services

? Biodiversity conservation

? Community co-construction and public welfare charity

Financial materiality

Impact materiality

012345678910

To align with regulatory requirements,modified the topic description

Material topics in 2023 Material topics in 2024 Changes Reason for changes

Optimized description

New topics

Optimized descriptionand adjusted definition

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Impacts, Risks, and Opportunities of Linglong Tire's Material Topics in 2024

Material topics in 2024 Key stakeholders affected Main risks/opportunities Period

?Materiality of the topic SDGs addressed Section of disclosureCustomers and usersAgents and suppliersGovernment and other regulatorsLocal communities and the public

Acute physical risks, chronic physical risks, policy and legal risks, technologi-cal risks, market risks, reputational risksEnergy sources, resource efficiency, market opportunities, products andservices, resilienceShareholders and investorsCustomers and usersAgents and suppliersGovernment and other regulatorsLocal communities and the publicGovernment and other regulatorsAgents and suppliersGovernment and other regulatorsLocal communities and the public

Climate change tacklingShort, medium, and long term Impact materiality Climate change tackling

Short, medium, and long term Double materiality Circular economy

Short, medium, and long term Double materiality Energy management

Medium and long term Impact materiality Water resource utilization

Short and medium term Financial materiality Environmental management

Medium and long term Impact materiality Emission and waste management

Medium and long term Impact materiality Biodiversity conservation

Short, medium, and long term Double materiality Safety and quality of products and services

Short, medium, and long term Double materiality Supply chain management

Short, medium, and long term Employees

Double materiality Impact materiality Financial materiality

Government and other regulatorsLocal communities and the publicGovernment and other regulatorsLocal communities and the publicGovernment and other regulatorsLocal communities and the publicCustomers and usersAgents and suppliersGovernment and other regulatorsCustomers and usersAgents and suppliersEmployeesEmployeesEmployees

High difficulty in recycling and reprocessing processes, policy and legal risksIncreased utilization rate of raw materials

Investment risks, technological risks, market risksSubsidy incentives, adoption of energy-saving technologies, market opportuni-ties, enhancement of brand imageOpportunities of resource sources

Policy and legal risks, liability and reputational risks

Liability risks, reputational risks

Liability risks, reputational risks, policy risks

Compliance risks, risks of product quality affected by production and testing processes, product return risks

Supply chain security risks, suppliers' environmental and social risks

Workplace diversity risks, employee turnover risks, labor risks, international adaptation risksOpportunities of human capital

Circular economy

Energy management

Water resource utilization

Environmental compliancemanagement

Emission and waste management

Safety and quality ofproducts and services

Supply chain management

Workplace diversity and inclusionEmployee rights and benefitsEmployee training and developmen

Biodiversity conservation

Note? Linglong Tire defines the period as short term (within 1 year), medium term (1 to 5 years) and long term (more than 5 years).

EmployeesLocal communities and the publicEmployeesAgents and suppliersGovernment and other regulatorsCustomers and usersAgents and suppliersEmployeesShareholders and investorsCustomers and usersAgents and suppliersEmployeesGovernment and other regulatorsEmployeesGovernment and other regulatorsLocal communities and the publicShareholders and investorsGovernment and other regulatorsCustomers and usersEmployeesShareholders and investorsGovernment and other regulatorsCustomers and usersAgents and suppliersEmployeesShareholders and investorsGovernment and other regulatorsCustomers and usersAgents and suppliersEmployees

Liability risks, reputational risks

Risks of commercial bribery, risks of unfair competition, risks of money laundering

Risks related to the independence, diversity and professionalism of the board ofdirectors, risks of damage to investors' rights and interests, risks of informationdisclosure violations, other compliance risks

Market opportunities

Liability risks, reputational risks

Market opportunities, opportunities of products and services

Liability risks, reputational risks, operational risks

Technological risks, data security risks, risks of organizational culture change, investment risksOpportunities for production efficiency, market opportunities

Risks of personnel injury and equipment damage, risks of occupational diseasesWork safety

Digital transformation

Data security and customerprivacy protection

R&D innovation

Intellectual property protection

Compliant operation

Business ethics

Corporate governance

Community co-constructionand public welfare charity

Short, medium, and long term Double materiality Work safety

Short, medium, and long term Double materiality Innovation-driven

Medium and long term Impact materiality

Medium and long term Double materiality Corporate governance

Medium and long term Double materiality Business ethics

Medium and long term Financial materiality Compliant operation

Material topics in 2024 Key stakeholders affected Main risks/opportunities Period

Materiality of the topic SDGs addressed Section of disclosure

Impacts, Risks, and Opportunities of Linglong Tire's Material Topics in 2024

Community co-constructionand public welfare charity

Data security and customerprivacy protection

Innovation-driven

Sustainability

Management System

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Sustainability Concept

Linglong Tire upholds the values of "Create opportunities for employees, value for customers, profits for shareholders and wealth for soci-ety". The Company takes "inheriting Linglong's power and building a better community together" as Linglong's concept of social responsi-bility. Linglong Tire is committed to promoting the Company's green, high-quality and sustainable development by creating a sustainableindustrial chain, deeply engaging in R&D innovation, consolidating product quality, upgrading the marketing model, and enhancing brandinfluence. The Company is striving to become a pioneer enterprise in green sustainability in China's tire industry.

MISSIONVISION

To become a technology-orientedtire manufacturer with world-classtechnology, management andbrand influence

VALUES

Create opportunities for em-ployees, value for customers,profits for shareholders andwealth for society

SOCIALRESPONSIBILITY

Inheriting Linglong's powerand building a better com-munity together

Donate to the communityand serve the country by promoting industry

Sustainability Management Structure

The ESG Department is responsible for the management and promotion of sustainabilitywork, assisting the Company in formulating sustainability strategies, setting sustainabilitygoals, and promoting their implementation.The five special committees are composed of various functional departments of the Com-pany. They are responsible for decomposing the goals according to the sustainability goals,and promoting the achievement of the goals.

Each functional department of the Company is responsible for the execution and implemen-tation of ESG affairs.The subcommittee of the Sustainable Development Committee is responsible for organiz-ing the formulation, decomposition and implementation of the sustainability goals of thebranches and subsidiaries.

In 2024, the Company revised the Guidelines for the Construction of Green, Clean, Civilized and Lean Factories to improve the sustainability management in each manufacturing base including environmental management,production safety, employee management, and production quality, consequently refining the Company's comprehensive management methods and promoting the Company's sustainability.To efficiently promote the Company's sustainability, Linglong Tire incorporates sustainability indicators, such as the amount of waste generated in production, energy consumption, and the promotion of the application ofsustainable skeleton materials in products in research and development, into the performance appraisals of directors and senior executives. The Company's Board of Directors fully performs its duties of supervision anddecision-making on sustainability-related matters, and regularly reviews relevant proposals and matters. The Company regularly organizes sustainability training for directors, senior executives and all employees. In 2024,the Company carried out 2 sustainability training sessions for directors and senior executives of the Company, and carried out 6 sustainability training sessions for all employees, with a total training duration of 12 hours.

Sustainability Management Structure of Linglong Tire

Scene of Sustainability Training

The Board of Directors is responsible for supervising sustainability-related work and isultimately accountable for it.The Sustainable Development Committee is responsible for making decisions on major sus-tainability-related matters.

ESG Department

Governance and Economy

Committee

Supply Chain Committee

Human Rights and Labor

Committee

Social Responsibility Committee

Functional departments of

the Company

Subcommittee of the Sustainable

Development Committee

Product, Safety, Environment andClimate Change Committee

Board of Directors

Sustainable Development Committee

Decision-making

level

Managementlevel

Execution

level

Linglong Tire continuously improves the development of the sustainability management system. The Company has established a three-layer managementstructure of "decision-making - management - execution" to scientifically and effectively promote the Company's sustainability work process. In 2024, theCompany formulated the Regulations on Sustainability Management and revised the sustainability management structure and the work functions of eachlevel. The Company established the ESG Department as the management department for sustainability work. The ESG Department is responsible for thesustainability-related management of each special committee and subcommittee. For the functions of each special committee, please refer to the LinglongTire 2023 Sustainability Report.

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Climate Change Tackling

Environmental Management

Energy Management

Circular Economy

Water Resource Management

Emission and Waste Management

Ecosystem and Biodiversity Conservation

Environmental

Green Linglong,

Promoting Sustainable Development

Climate Change

Tackling

Possibility of risks and opportunities

Identification Matrix of Climate Change Risks and Opportunities

HighMedium

High

Technical risks

Acute physical risks

Resilience

Reputation risksChronic physical risks

Products and services

Market opportunities

Physical risksTransition risks

Policy and legal risks

Market risks

Source of energy

Resource efficiency

Climate-related risks

Opportunities

Climate-related opportunities

Impact of risks and opportunities

Identification of Climate-related Impacts, Risks, and Opportunities

Governance

Climate Change Management System of Linglong Tire

?The Company identifies, assesses, and analyzes climate-related impacts, risks, and opportunities.?The Company formulates a "carbon peaking and carbon neutrality" plan and the Climate and Environmental Policy,and regularly conducts carbon inventories of each manufacturing base.?The Company formulated a construction plan for new energy PV power generation base stations in 2025 to increasethe proportion of PV power generation.?The Company sets a carbon neutrality target for 2050 with 2023 as the base year, and formulates short-term, medi-

um-term and long-term carbon reduction plans and a carbon reduction roadmap.

?The Sustainable Development Committee of the Board of Directors is the highest responsible institution for deci-sion-making and supervision of the Company's sustainability matters. The Sustainable Development Committeeassumes the overall responsibility for the Company's climate-related management and regularly examines and approvesdecisions on climate risk and opportunity management strategies, impacts, risks and opportunities, and goals.?The ESG Department is responsible for improving the construction of the sustainability system including climate change,formulating strategies, and inspecting and assessing the implementation of climate change work by the special commit-tees.?The Product, Safety, Environment and Climate Change Committee is responsible for managing climate-related risksand opportunities such as promoting product carbon inventory, developing eco-friendly, green and low-carbon prod-ucts, increasing the proportion of renewable energy, and building green factories.?The Company incorporates environmental management-related indicators such as "comprehensive energy con-sumption" into the performance appraisals of the management level.

?Long-term target: achieving carbon neutrality by 2050?Short-term target: 1.5% reduction in carbon emission intensity per unit of product in 2024 compared to 2023.

Strategy

?Based on its own business and operation reality, and in combination with the opinions of experts, the Company

assesses the climate-related impacts of its business model, business operations, and value chain on the economy,society and environment, the impacts of climate-related risks and opportunities on the Company itself, as well as theprobability and extent of these impacts. The Company formulates targeted response strategies and continuouslyimproves the response mechanism.

Impacts, Risks,and OpportunitiesManagement

Indicators and

Targets

Climate Change Tackling

The aspects involving GHG emissions of Linglong Tire include production and office processes. The sources of GHG emissions include the electricity usedin production and office operations, the steam used in production, and the natural gas used in boilers. The types of emissions include carbon dioxide, meth-ane, nitrous oxide, and refrigerant leakage emissions.Under the strategic guidance of China's goals of carbon peaking and carbon neutrality, comprehensively promoting the construction of a beautiful China, and facilitatingthe comprehensive green transformation of economic and social development, Linglong Tire has been continuously implementing the concepts of pollution reduction,carbon emission reduction, environmental protection, and energy conservation. The Company improves the climate change governance structure and sets the strategicgoals of "peaking carbon dioxide emissions by 2030 and achieving carbon neutrality by 2050". The Company identifies climate risks and opportunities, and formulates acarbon neutrality path. Linglong Tire continuously promotes the realization of the Company's strategic goals from aspects such as energy utilization, R&D innovation ofsustainable tires, and supplier management, contributing to China's progress in mitigating climate change and actively adapting to climate change strategies.

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

The increased frequency of extreme weather events, such as typhoons, heavy rainfall,floods, heavy snow, and hurricanes, may cause damage to the fixed assets of theCompany's operating sites, loss of personnel, or business interruptions.

The increase in average temperature would have an impact on the climate or ecosys-tem, which may lead to the interruption of the supply and demand of the Company'sraw materials and price increases; the rise in sea level may directly affect the opera-tion of the Company's coastal operating sites.

With the introduction and revision of climate-related laws, regulations and regulatorypolicies in various countries, such as the relevant provisions of the EU Carbon BorderAdjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR), theCompany's own operations and value chain may reduce their market competitivenessdue to failure to meet the requirements, or face compliance risks, resulting in damageto the Company's reputation.

With the increase in market demand for green and low-carbon products, the use ofcorresponding low-carbon technologies and raw materials has become the focus ofresearch and development. In the process of strengthening the development of greenand low-carbon technologies, the Company needs to invest more R&D funds andmanpower. As market pioneers, leading companies in the industry may obtain coretechnologies first, and the Company's competitiveness may decline.

The increase in customers' demand for low-carbon and eco-friendly products mayincrease the purchase cost of renewable materials and raise customers' require-ments for the Company's product carbon inventory. The increase in customers whopurchase new energy vehicles leads to an increase in the demand for tires of NEVs,and the development cost of tires for NEVs increases.Stakeholders such as customers and consumers are paying increasing attention tothe Company's performance in addressing climate change. If the Company does notactively carry out climate-related response and mitigation actions, it may not be ableto meet the expectations of stakeholders, resulting in damage to its image and repu-tation.

Identification and Response to Climate Change Risks and Opportunities of Linglong Tire

Type of risks and opportunities Description Impact period Potential financial impact Countermeasures

Risk

Acute physical risks

Chronic physical risks

Policy and legal risks

Technical risks

Market risks

Reputation risks

Short, medium, and long term

Medium and long term

Short, medium, and long term

Medium and long term

Depreciation of fixed assetsIncrease in operating costsDecrease in operating income

Increase in operating costsDecrease in operating income

?The Company formulates on-site disposal plans for natural disasters related to extreme weather, equips with emer-

gency facilities and equipment, and conducts regular emergency drills.?The Company closely monitors national and regional climate-related information platforms to improve the timeli-ness of information acquisition.

?The Company closely monitors the updates of climate-related laws, regulations and policies, and actively improves

the carbon management mechanism in accordance with CBAM.?The Company regularly discloses environmental data in accordance with regulatory requirements.

?The Company strengthens cooperation with peers and industry associations to jointly accelerate the R&D of green

and low-carbon products.?The Company promotes the development of sustainable raw materials.?The Company regularly conducts employee training to improve employees' R&D capabilities.

?The Company increases the proportion of sustainable materials applied in tires.?The Company promotes the R&D and application of tires for NEVs.?The Company regularly conducts product carbon inventory.

?The Company strengthens communication with stakeholders.?The Company regularly conducts the identification and assessment of climate-related impacts, risks and opportuni-

ties, and incorporates climate-related risks into the Company's risk management system.

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Opportunity

With the introduction of policies on renewable and clean energy, the accessibilityof renewable energy gradually increases, and the price may gradually decrease.The Company's increased use of renewable energy can reduce costs of energy.

Through measures such as water resource reuse, raw material recycling, and thepromotion of green intelligent manufacturing, resource efficiency can beimproved, the Company's operating costs can be reduced. The production effi-ciency can also be improved, and GHG emissions can be curbed to a certainextent.

The Company strengthens the production of products and the provision ofservices that meet the climate-related management requirements of variouscountries, which can open up new markets and improve the Company's marketcompetitiveness.

With the increase in demand for green and low-carbon products and services, thecontinuous development of low-carbon products can effectively improve theCompany's industry competitiveness. While reducing its own production and oper-ation carbon emissions, the Company can also develop potential low-carbon part-ners and raise industry barriers.

The Company regularly identifies climate-related risks and opportunities, andstrengthens the ability to respond to and manage climate-related risks and oppor-tunities. The Company continues to develop eco-friendly raw materials and tech-nologies, ensures product diversification, and continuously improves the Compa-ny's resilience.

Source of energy

Resource efficiency

Market opportunities

Products and services

Resilience

?The Company formulates a carbon neutrality plan, regularly conducts carbon inventory, and increases the propor-tion of clean energy use.?The Company develops and supplies tires locally to reduce carbon emissions.

?The Company strengthens the use of renewable/recyclable materials and the reuse of waste to promote the devel-

opment of a circular economy.?The Company formulates a digital transformation and R&D innovation plan, and actively promotes intelligent manu-

facturing, intelligent retail and product development.

?The Company gains insights into market demand and develops diversified businesses.

?The Company improves the safety and sustainable management of the supply chain, and jointly with suppliers

actively responds to the requirements of EUDR.?The Company jointly develops low-carbon and renewable materials with suppliers, optimizes transportation meth-

ods and warehousing layout, and jointly reduces carbon emissions.

?The Company strengthens the management of climate-related impacts, risks and opportunities, and conducts R&D

activities on raw materials and products.

Medium and long term

Short, medium, and long term

Decrease in operating costs

Increase in operating income

Increase in operating costsIncrease in operating income

Increase in operating income

Identification and Response to Climate Change Risks and Opportunities of Linglong Tire

Type of risks and opportunities Description Impact period Potential financial impact Countermeasures

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Carbon emis-sion intensityper unit ofproduct

1.5% decrease

in 2024 com-pared to 2023

Completed.The carbon emissionintensity per unit productin 2024 is 0.94tCO2/t, areduction of 1.95% com-pared with 2023

?The Company promotes the construction and use of PV power gener-ation, increases the proportion of renewable energy use, and continu-ously promotes energy consumption optimization projects.

?The Company sets the carbon neutrality boundary, identifies keycarbon emission sources including natural gas combustion, coalcombustion, purchased electricity, purchased steam, etc., and takesthem as the key points for carbon emission reduction.?For Scope 1 emissions, the Company formulates short, medium, andlong-term emission reduction measures, including the plan to use100% new energy official vehicles and production forklifts by 2030and the subsequent use of biomass gasification boilers.?For Scope 2 emissions, the Company promotes the construction and

use of PV power generation and wind power generation, increasingthe proportion of renewable energy use. The Company continuouslypromotes energy consumption optimization projects, and improvesthe energy-saving technology of large equipments. The Companyoptimizes the production organization man-hours, and developsadvanced tire manufacturing processes.?For Scope 3 emissions, the Company strengthens the management

of raw material suppliers and logistics suppliers, and increases theproportion of renewable energy use by suppliers.

Indicator Target Key progress Measures

Carbonneutralityby 2050

In progressCarbonemissions

The Company sets short-term GHG emission targets and a carbon neutrality target for 2050. Taking 2023 as the baseyear, the Company prepares an emission reduction path plan, sets the carbon neutrality boundary, and develops emis-sion reduction management measures for carbon emissions in Scope 1, Scope 2, and Scope 3 respectively, to compre-hensively promote the realization process of the objectives.Indicators andTargets

Climate Change Tackling Targets and Progress of Linglong Tire in 2024

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Environmental

Management

Environmental Management

?The Company applies environ-

mental management systemstandards, formulates environ-mental management objec-tives, and tracks the comple-tion of these objectives.?The Company improves the

environmental compliancemanagement system andconducts environmental com-pliance management work.

Sustainable Development Committeeof the Board of Directors

Product, Safety, Environment and ClimateChange Committee

Sustainable Development Sub-committee ofrelevant departments and subsidiaries of theCompany

Environmental Management Organization of Linglong Tire

Governance

Strategy

The Company continuously improves the environmental management system by establishing an environmental man-agement framework and developing systems such as the Environmental Management System, the EnvironmentalProtection Management Procedure, and the Environmental Factor Identification and Evaluation Management Procedure.In 2024, the Company revised the Environmental Management System and added relevant requirements for environ-mental protection emergency management.

The Company regularly conducts the identification and assessment of the impacts, risks, and opportunities related toenvironmental compliance management, and identifies and evaluates environmental factors. The Company developstargeted management strategies, and effectively controls the impacts of environmental factors.

Risks Response and Management Strategies Related to Environmental Compliance Management of Linglong TireRisk category Description Impact period Financial impact Management strategy

Policy and legal risks

Responsibility andreputation risks

The changes in national macroeconomicpolicies, the economic environment, andthe relevant policies of various regionswill indirectly affect the Company'sproduction and operation.

In case of environmental protectionequipment failures or damage, employeenegligence, etc., which lead to the leak-age of pollutants or substandard emis-sions, or the leakage of liquid waste, theCompany may face administrative penal-ties, affecting the Company's image andreputation.

Short andmedium term

Increase in operatingcosts

Increase in operatingcostsDecrease in operat-ing income

Linglong Tire adheres to the environmental management concept of "environmental protection and energy conservation, full participation, and continuousimprovement", strictly complies with laws and regulations such as the Environmental Protection Law of the People's Republic of China and the managementregulations of the operation location. The Company builds an environmental management system, improves the quality and efficiency of resource andenergy management, as well as pollutant and waste management, and firmly adheres to the bottom line of environmental compliance.

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Scene of Environmental Protection Training

The Company continuously improves the construction of the environmental compliance responsibility system in accordance withlaws and regulations, and applies environmental management system standards. The Company clarifies the main responsibilitiesof the enterprise, and assigns responsibilities and powers to individuals. The Company continuously conducts environmentalcompliance management work, and comprehensively promotes environmental compliance management.In 2024, the Company has not been penalized by the ecological and environmental administration for environmental incidents.

Shandong Linglong Tyre Co., Ltd. and its subsidiaries, Dezhou Linglong Tyre Co., Ltd., Hubei Linglong Tyre Co., Ltd., andJilin Linglong Tyre Co., Ltd., were listed as key pollution discharge units (key monitoring: waste gas and wastewater).These companies fulfilled their ecological environment-related obligations such as self-monitoring and informationdisclosure in accordance with the law. The relevant environmental management situations of the above key pollutiondischarge units in 2024 can be found in the 2024 Annual Report of Linglong Tire.

Environmental Compliance Management Measures of Linglong TireEnvironmental Management Targets and Progress of Linglong Tire in 2024

Sudden major environmental incidents

Wastewater and exhaust gas emissions

Waste disposal

Plant boundary noise

100% compliance rate of emissions

100% legal disposal rate

Daytime ≤ 65dB, nighttime ≤ 55dB

Completed

?By the end of 2024, each manufacturing base of Linglong Tire has obtained the ISO 14001 environmental

management system certification, and all certificates were within the valid period.?In 2024, the Company got GREEN in the Environmental Credit Rating of Enterprises in Shandong Province.

Indicator Target Progress

Indicators andTargets

Environmentalcompliancemanagement

mechanism

Environmentalmanagement

audit

Regular monitoring ofenvironmental impactCleaner production audit

Emergency drills for

sudden environ-mental incidents

[Case] Organized environmental protection training

In 2024, the Company organized the Linglong Environmental Pro-tection Knowledge Training. Through this training, the Companystrengthened the environmental protection legal awareness of allemployees. The Company carried out special environmentalprotection inspections, and enhanced the supervision of the dailymaintenance of environmental protection facilities. The Companyimproved the weak points of daily environmental management, andenhanced the quality and efficiency of environmental management.

?The Company has established an environmental management mechanism to implement environmental protectionmeasures and improve environmental management performance. The Company defines management objectivesevery year and decomposes them layer by layer, and operates according to the monthly tracking and review systemand the achievement of indicators and targets.?The Company's safety and environmental protection department organizes internal environmental audits every year,to evaluate the environmental management work of each department, and make improvements to existing problems.?The Company regularly conducts external audits of the environmental management system every year, and hiresthird-party experts to evaluate the Company's environmental management work. The Company makes improvementsto the problems, and promotes the continuous improvement of the Company's environmental management system.?The Company hires professional third-party institutions to conduct periodic environmental tests on the wastewaterand exhaust gas emissions of each manufacturing base every year.?The Company carries out and passes the third round of cleaner production audit. By adding partition protection in themixing workshop, the Company effectively reduces the unorganized emission of exhaust gas, improves the collec-tion efficiency of environmental protection facilities, and reduces exhaust gas emissions.?The Company incorporates special environmental protection emergency drills into the annual emergency drill plan.In 2024, the Company developed the environmental emergency drill plan and carried out environmental emergencydrill activities to enhance employees' capabilities in responding to and handling environmental emergencies.

Impacts, Risks,and OpportunitiesManagement

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Energy

Management

Board of Directors

Leading Group forEnergy Conservationand Consumption

Reduction

Relevant departments

and subsidiaries of

the Company

Energy Management

The development and use of energy conservation technolo-gies require a certain amount of capital and humanresources investment, and there may be no correspondinginvestment returns in the short and medium terms.The implementation of new energy conservation technolo-gies may face the problems of immature technologies orunsuitability for the existing production processes, thusaffecting the normal production of the Company.Fluctuations in energy prices may lead to an increase incosts, thus affecting the overall economic benefits of theCompany.The government may increase subsidies or tax incentivesfor energy conservation and emission reduction projects,promoting the progress of the Company's energy conserva-tion projects.The adoption of emerging energy conservation technolo-gies (such as smart grids, the Internet of Things) cansignificantly improve the efficiency of energy management.With the growing demand for renewable energy and energyconservation products, strengthening the development ofgreen products can open up new business areas andmarkets.Improving energy efficiency can enhance the corporatebrand image and attract more customers and investors.

?The Company establishes,implements and continuouslyimproves its energy manage-ment system in accordancewith the PDCA (Plan, Do,Check, and Act) cycle model.The Company increases theproportion of renewableenergy, and strengthens thedevelopment of low-carbonproducts. The Company hasformulated two plans toimprove energy utilizationefficiency, namely energyconservation technologytransformation, and optimi-zation control of the produc-tion process, to achieve thegoal of reducing energy costsand increasing efficiency.

Energy Management Framework of Linglong Tire

Risks, Opportunities and Management Strategies Related to Energy Management of Linglong Tire

Risks

Oppor-tunities

Investment risks

Technical risks

Market risks

Subsidy incentive

Adoption of energyconservationtechnologies

Market opportunities

Enhancement ofbrand image

Short andmedium term

Short, medium,and long term

Short term

Medium andlong term

Increase in operating costs

Increase in operating costsDecrease in operating income

Increase in operating costs

Increase in operating costsIncrease in operating income

Increase in operating costs

Decrease in operating costs

Increase in operating income

The Chairman of the Board is the highest leader of the energy management system,responsible for leading the guiding work of the Company's energy management system.

The President serves as the group leader, and the main responsible persons of each department are members.They are responsible for formulating energy conservation management systems, plans and objectivesaccording to the Company's strategic goals, and supervising the implementation of relevant departments.

They are responsible for implementing energy conservation plans and helping to achieve energy conservation goals.

Management strategyDescriptionRisk/opportunity categoryImpact periodFinancial impact

Governance

The Company continuously improves the energy management system and enhances energy utilization efficiency byestablishing an energy management framework and developing systems such as the Energy Management SystemManual, the Energy Management System, and the Energy Conservation Management System. The Company links theenergy management indicator "comprehensive energy consumption" with the salary performance of the Company'sVice President.

Strategy

The Company regularly conducts the identification, assessment and management of energy-related impacts, risks andopportunities. The Company adjusts management strategies in a timely manner, takes targeted management mea-sures, and strengthens the effectiveness of energy efficiency improvement.

Various energy types and their corresponding application domains of Linglong Tire are electricity and steam for manufacturing facilities, coal and naturalgas for boilers, and electricity for offices.The Company strictly complies with laws and regulations such as the Energy Conservation Law of the People's Republic of China and the Renewable EnergyLaw of the People's Republic of China, as well as the management regulations of the operation location. Guided by the management concept of "complyingwith laws, regulations and other requirements, actively promoting cleaner production and low-carbon manufacturing, reducing energy consumption fromthe source, and promoting the circular development of the economy", the Company promotes the construction of the energy management system andimproves the quality and efficiency of energy conservation and consumption reduction.

[Honor] In 2024, the Compa-ny was selected as one of the"Benchmark Enterprises ofEnergy Efficiency Leaders(Tires) in 2023" by the ChinaPetroleum and ChemicalIndustry Federation.

[Honor] In 2024, the Com-

pany was selected as oneof the "Energy Efficiency'Leaders' of Key Products inthe Rubber Industry in2023" by the China RubberIndustry Association.

Standard formu-lation and prod-uct certification

PV Power Generation Situation of Linglong Tire Manufacturing Bases

Note? Primary steam usually refers to steam produced from a boiler, heated and transported to a specific equipment or system for use. Secondary steam refers to the steam generated

after primary steam has been utilized and subsequently undergoes a heat exchange process. In specific industrial production and heating systems, the reuse of secondary steamcan bolster the efficiency of energy utilization and reduce the total energy consumption of the system, thereby saving energy.

[Case] Upgraded single machine and single cover for vulcanizers

In 2024, compared with the conventional large enclosure for exhaust gas collection, thesingle machine and single cover for exhaust gas collection used by the Company's vulca-nizers not only improved the exhaust gas collection efficiency but also reduced powerconsumption and operating costs. Taking the all-steel vulcanizers of Hubei Linglong asan example, after the transformation, about 30% of energy was saved. Calculated basedon an annual operation of 8,000 hours, about 240,000 kWh of electricity would be savedannually. In 2024, the Company completed the transformation of 143 single machinesand single covers for Hubei Linglong and 13 sets for Dezhou Linglong.

The energy consumption per unit product (PCR radial tire, TBR radial tire, off-the-roadtire) reaches the advanced energy consumption value specified in the national stan-dard (GB 29449-2012)(Advanced energy consumption value: semi-steel tires ≤ 380 kgce/t; all-steel tires ≤285 kgce/t; o-the-road tires ≤ 415 kgce/t)

The energy consumption per unit product of PCR radialtire is 232.4 kgce/t, that of TBR radial tire is 168.0kgce/t, and that of off-the-road tire is 349.27 kgce/t,reaching the advanced energy consumption value.

Note? The scope of PV power generation in 2023 and 2024 includes Zhaoyuan Base, Dezhou Base, Guangxi Base, Hubei Base and Jilin Base. The scope of PV power generation in 2022 includes Zhaoyuan

Base, Dezhou Base, and Guangxi Base.Note? The scope of total electricity consumption in 2024 includes Zhaoyuan Base, Dezhou Base, Guangxi Base, Hubei Base, Thai base, Jilin Base and Euro Base. The scope of total electricity consumption

in 2023 includes Zhaoyuan Base, Dezhou Base, Guangxi Base, Hubei Base, Thai base and Jilin Base. The scope of total electricity consumption in 2022 includes Zhaoyuan Base, Dezhou Base, Guangxi

Base, Hubei Base, and Thai base.

Energy Management Measures of Linglong Tire in 2024

Energy conservationtechnology transfor-mation and optimiza-tion control

Construction ofintelligent big data

platform

Energy Management Targets and Progress of Linglong Tire in 2024

?Targets Progress

Category 2022 2023 2024PV power generation (kWh)

? 30,745,782 62,552,500 91,687,700Total electricity consumption (kWh)

879,699,606 1,089,061,765 997,427,332Proportion of PV power generation (%) 3.50% 5.74% 9.19%

Note? The completion status of the energy management objectives for 2024 refers to the Zhaoyuan Base.

Vulcanizer

The Company prepared the Regulations on the Control and Management of Risk and Opportunity Response, aiming toprovide guidance for the Company to regularly identify energy management-related risks and opportunities. By takingmeasures such as energy conservation technology transformation, and production optimization control, building an intelli-gent big data platform, participating in standard formulation, and obtaining low-carbon product certifications, the Compa-ny improves energy utilization efficiency and promotes the progress of energy conservation and consumption reduction.

In 2024, the Company formulated energy consumption management objectives, continuously promoting the construc-tion of PV power generation at each manufacturing base, and the realization of the 2025 PV power generation plan andthe carbon neutrality target by 2050.

?The Company carried out a waste heat recovery project. The project includes the recycling of secondary steam

?, whichis mixed with primary steam. After increasing the pressure, medium-pressure steam is formed and supplied for airconditioners in winter and calendering ovens. In this way, it replaces the original primary steam, saving the cost ofprimary steam. In 2024, 15,279 tons of primary steam for production were saved, saving a cost of RMB 2.569 million.?The Company purchased high-efficiency equipment to replace the on-site high-energy-consuming equipment.?The Company optimized and refined the control of the indicators of the power station, tracking various unit con-sumption data, including the unit consumption of air compressors, nitrogen, and cooling water.?Hubei Linglong built an intelligent energy management platform, which collects data from electricity meters, flowmeters, and water meters online and connects them in parallel. Through intelligent analysis, it achieves indicatorearly warning, monitoring and horizontal comparison. It can also automatically identify abnormal points, realize theimplementation management of energy, and optimize the quality of energy management?A number of series products of the Company have obtained low-carbon product certifications. Among them,

Linglong's ultra-low rolling resistance green tire POWER SAVER won awards such as "China Annual Energy Conser-vation and Environmental Protection Tire".— The rolling resistance of the all-steel ultra-low rolling resistance tire E-PLUS 01 is reduced by more than 35% com-pared with that of ordinary products. The fuel consumption per 100 kilometers of the whole vehicle is reduced bymore than 2.2 liters, and the rolling resistance reaches Class A of the EU label.— The semi-steel SPORT MASTER E tire has passed the strict tests of the IDIADA laboratory in Spain. Its rollingresistance reaches 6.0 or below, the wet skid reaches 1.74, the noise is 70 dB, and the tire can reach the 3A grade.?The Company participated in the formulation of the group standard Specification for the Evaluation of Low-Carbon

Products of Automobile Tires.

Impacts, Risks,and OpportunitiesManagement

Indicators andTargets

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Circular Economy

Governance

Strategy

The Company promotes the development of green raw materials and products, strengthens raw material management,and develops the circular economy at multiple levels by establishing an organizational structure for circular economymanagement and developing relevant systems such as the Regulations on Sustainability Management and the Require-ments for Raw Material Quality Control.

To comply with the development trend of the circular economy, better adapt to changes and risks, and seize the devel-opment opportunities of cleantech, the Company conducts the identification and assessment of the impacts, risks andopportunities related to the circular economy, and flexibly adjusts the development strategic plan, to maintain the Com-pany's competitiveness.

Circular Economy

Circular Economy Management Structure of Linglong Tire

Sustainable Devel-opment Committeeof the Board ofDirectors

Product, Safety,Environment andClimate ChangeCommittee

Relevant

departments ofthe Company

The committee is responsible for the supervision and guidance of the management related to the circular economy.

The committee is responsible for formulating strategies related to the circular economy and managing the work relat-ed to the circular economy.

?The R&D Headquarters is responsible for the development of reduced and recycled raw materials, as well as prod-ucts made from recycled materials.?The Procurement Department is responsible for the procurement of recycled raw materials.?The Safety and Environment Department is responsible for the management of recyclable waste.

Currently, the processes of recycling andreusing fiber cords and steel wires aredifficult. Only leading enterprises in theindustry are developing them, whichrequires a large investment in R&D expens-es, and the overall mass production appli-cation has not been formed yet.

The EUDR's certification requirements inthe fields of sustainability and traceabilitymake the sources of natural rubber rawmaterials traceable, leading to an increasein procurement costs. If the requirementsare not met, the Company's market com-petitiveness in the EU will be affected.

The Company processes waste tires intoliquid reclaimed rubber, which is used as aproduction raw material in production.While reducing the amount of waste treat-ment, the Company also reduces theprocurement cost of raw materials.

Risk/opportunity category Description Impact period Financial impact Management strategy

?The Company formu-lates strategic plans andobjectives for the appli-cation of frameworkmaterials and sustain-able materials, continu-ously promotes the useof renewable, recyclableand reduced raw materi-als, and strengthens therecycling of waste.?The Company formu-

lates product specifica-tions in line with EUDRto ensure that the Com-pany's products meetthe requirements ofEUDR and identifypotential businessopportunities.

Risks, Opportunities and Strategies Related to the Circular Economy of Linglong Tire

High difficultyin recycling andreprocessing

Opportunity

Risk

Policy andlegal risks

Increasedutilization rateof raw materials

Short andmedium term

Short andmediumterm

Decrease inoperating costsIncrease in oper-ating income

Increase in oper-ating costsDecrease inoperating income

Increase inoperating costs

The circular economy content involved in Linglong Tire mainly includes the recycled water use in the production process, the utilization of renewable rawmaterials, and the recycling of waste. The Company strictly complies with laws, regulations, and relevant provisions such as the Circular Economy Promo-tion Law of the People's Republic of China. Through R&D innovation and activities of reducing, reusing and recycling raw materials, the Company promotesthe high-quality development of the circular economy.

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

?By 2025, the Company will complete the application evaluation and veri-fication of the representative specifications of sustainable (bio-basedand recycled) framework materials in all parts of the tire. The totalweight of framework materials in each part accounts for about 15% ofthe total weight of the tire, and a small batch will be put into the market.?By 2030, the Company will complete the verification of other currentsustainable framework material specifications in tires and gradually putthem into mass production.?By 2035, the Company will comprehensively promote the application ofsustainable framework materials in tire manufacturing and no longeruse completely petrochemical materials as tire framework materials.?By the end of 2028, the Company will achieve the application of 85% sus-

tainable materials in tires.?By the end of 2030, the Company will achieve the application of 90% sus-tainable materials in tires.?By the end of 2040, the Company will achieve the application of 100%

sustainable materials in tires.

[Awards]In November 2024, the Company'stire with 79% sustainable materi-als won the "Prospective · Light-weight and New Materials Catego-ry · Gold Award" of the 9th Lingxu-an Award. Linglong Tire is the onlyenterprise in the tire industry towin the Lingxuan Award for fiveconsecutive years.

In 2024, the EU label of theCompany's Future concept tirewith a 79% sustainable materialproportion reached the "AAA"

grade.

The 79% sustainable tire wasshown at the Cologne Exhibition

in Germany.Note? The product has achieved the highest EU Grade A in terms of wet grip performance, noise performance, and rolling resistance performance.

?The Company uses new materials, such as rapeseed oil, liquid reclaimed rubber, reclaimed rubber, pyrolysis carbonblack, rice husk ash silica, bio-based carbon black, recycled polyester cords, and recycled steel wires, as raw materialsfor tires. In 2024, the Company launched an eco-friendly tire with a sustainable material content of 79%. The productreaches the highest A grade in the industry in terms of noise performance and rolling resistance performance.?In February 2024, the liquid reclaimed rubber produced by Linglong Tire's waste tire treatment project was officially

put into mass production, which can achieve the annual treatment of 10,000 tons of waste tires and the productioncapacity of 6,000 tons of liquid reclaimed rubber. By the end of 2024, the Company produced a total of 4,322.57 tonsof liquid reclaimed rubber.?The Company conducts research on tire product retreading, enabling the recycling and multiple retreading of wastetires, maximizing the value of products, and effectively reducing the tire usage cost.?In April 2024, the Company led the revision of two national standards for retreaded tires, namely the Retreaded Tiresfor Heavy-Duty Vehicles and the Retreaded Tires for Passenger Cars, incorporating new technologies and processesinto the standards, and promoting the popularization and application of advanced and applicable technologies.?The Company jointly established a research project with Beijing University of Chemical Technology and the team ofAcademician Zhang Liqun, and developed a tire tread compound with biodegradable properties using bio-derivedrubber elastomers. On the premise of not reducing the tire performance, the carbon dioxide emissions in the produc-tion process of this compound are greatly reduced, and it can be biodegraded after being discarded.?The Company jointly established the "Dandelion Rubber Industry Innovation Strategic Alliance" with Beijing Universi-ty of Chemical Technology, and jointly promoted the research and development of dandelion rubber with top domes-tic scientific research teams, achieving successful cultivation in multiple regions in China.?Upon active cooperation with South China University of Technology, the Company conducts active research on

bio-based additives and other aspects, and has obtained several achievements.?The Company continuously promotes paperless office and electronic office to reduce paper consumption.?The Company encourages employees to use reusable office supplies and choose double-sided copying and printing.

[Case] Use of Bio-based Raw Materials

The raw material of the bio-based PA56 cord fabric used intire manufacturing is corn cobs and straws. The fabric isproduced by using biological fermentation technology andrenewable raw materials, and the bio-based percentagecan reach 45%. The bio-based materials used as raw mate-rials also include rapeseed oil, castor oil, sunflower seedoil, stearic acid, and rice husk ash silica.

[Case] Strengthened the production and application of liquid reclaimed rubber

In 2024, the liquid reclaimed rubber project officially put into production bythe Company is a leading new technology for waste tire treatment in Chinaat present. There is no wastewater discharge during the production pro-cess of this technology. The overall heating temperature is low, the energyconsumption is low, and less exhaust gas is generated during the produc-tion process. Liquid reclaimed rubber can be used to replace some materi-als such as fillers, oils, and resins in the tire formulation system, thus real-izing the reuse of waste tires and the saving of raw materials.

By the end of 2024, the indoorperformance tests and road testsof the bio-based nylon, recycledpolyester, and recycled steelwire, which are the frameworkmaterials for various parts relat-ed to tires, have all been passed.The total weight of the frame-work materials for each partaccounts for approximately 15%of the total weight of the tire.

By the end of 2024, the Companyachieved the application of 79%sustainable materials in tires.

Circular Economy Targets and Progress of Linglong Tire in 2024Circular Economy Management Measures of Linglong Tire

Development of tiresmade of sustainable

materials

Promotion of waste

reuse

Research on tire

retreading

Strengthening external

cooperation

Implementation of

green office

Indicator Target Progress

Application of tires made ofsustainable materials

Framework materials for tiremanufacturing

Linglong Tire continuously improves its comprehensive resource utilization ability, and promotes the development oftires made of sustainable materials, the processing and reuse of waste tires. The Company continuously studies tireretreading, strengthens external research cooperation, and implements green office practices. The Company compre-hensively improves resource utilization efficiency, enhances the utilization level of renewable resources, and promotesthe development of a green, low-carbon circular economic system. For the Company's recycled water use situation,please refer to the "Water Resource Management" section.

In 2024, the Company continuously promoted the development and application of raw materials such as frameworkmaterials and sustainable materials. The Company formulated short, medium, and long-term objectives, and contribut-ed its own strength to the national circular economy development strategy.Impacts, Risks,and Opportunities

Management

Indicators andTargets

Water Resource

Management

?Centering on scientific and reasonable water use and improving the utilization rate of water resources, the Companyenhances the water conservation awareness of all employees, and creates a water-saving unit. The Companyimproves the efficiency of water resource use, and establishes a long-term management mechanism for water con-servation, to realize the sustainable utilization of water resources.?From June to September, the low-temperature cooling water for Area A and the mixing process are provided at thepower workshop of Zhaoyuan Base. It is supplied through a chiller to form a closed-loop circuit for cyclic supply. Inthe remaining months, normal-temperature cooling water is supplied by an open cooling tower for cyclic use.?The Thai base has installed water storage tanks to collect rainwater. After the rainwater is double-filtered, it ispumped to the power workshop, and then softened by the power workshop and supplied to each process for use. In2024, the rainwater collection volume of the Thai base was approximately 237,100 m?, accounting for 60.49% of thetotal water consumption of the Thai base.?The Company reuses the wastewater that has been treated and meets the standards in the wastewater treatmentstation, the recycled rainwater, and the boiler condensate water, for the greening of the manufacturing base plantarea, road spraying, toilet flushing, fire protection, cooling tower, and power station. In 2024, the Company's recycledwater volume was approximately 398,400 m?, accounting for 16.27% of the total water consumption of the Company.?Zhaoyuan base replaced the tap water pipeline in the water pump room with PPR (Polypropylene-Random) pipes,eliminating the potential safety hazard of iron pipe corrosion and correspondingly reducing water resource leakage,saving about 5 cubic meters

? of water per day.?Zhaoyuan base installed solenoid valves to control the shut-off valves of the cold air pipeline. While saving water, it

avoids the occurrence of condensed water caused by temperature, saving about 5 cubic meters

of water per day.?In 2024, the Company organized water conservation publicity activities with the theme of "Saving Water", covering

more than 17,000 people.

Water resourceutilization strategy

Recycling and reuse

Optimization of

equipment and

devices

Water conservationpublicity and imple-mentation activities

Water Resource Management

Water Resource Management Measures of Linglong Tire

Note? The water-saving data are estimated values.

The water resource used in Linglong is municipal water supply for production and office. LLIT filters, stores, and utilizes rainwater through a rainwatercollection system to reduce the dependence on traditional water sources.Linglong Tire strictly complies with laws and regulations such as the Water Law of the People's Republic of China and the management regulations of theoperation location. The Company formulated systems such as the Water Resource Conservation Management System and the Circulating Cooling WaterQuality Management System. The Company established a water resource management framework, and set up a leading group for energy conservation andconsumption reduction. The President serves as the group leader, and the main responsible persons of each department are members. The leading groupis fully responsible for various tasks of the Company's energy conservation and consumption reduction, including water conservation management. TheCompany's Administrative Department, Safety and Environmental Protection Department, and Equipment and Energy Management Department managethe water conservation work of each department.The Company formulates water resource utilization strategies, and continuously carries out water conservation work. By strengthening the recycling andreuse of water resources, optimizing equipment and devices, and carrying out water-saving publicity and implementation activities, the Company continu-ously promotes the long-term management of water resources.

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Emission and Waste

Management

After being centrally treated and meeting the standards in the plantwastewater treatment station, the Company reuses it for the green-ing of the plant area, road spraying, and toilet flushing.

The Company discharges it into the municipal sewage network.

[Case] Exhaust Gas Collection and Treat-ment Facilities

During the construction of the mixingworkshops of Jilin Linglong and LLIE,measures such as adding isolation roomsand gas collection hoods were taken forequipment sealing to enhance the effect ofexhaust gas collection and treatment.

Wastewater Management

The Company continuously ensures the effective treatment of sewage and complies with the regulations for discharge after meeting the standards. Eachmanufacturing base has a sewage treatment station, equipped with a complete sewage treatment system. Special technicians and operators are responsi-ble for the daily chemical addition and equipment maintenance. Some manufacturing bases have online monitoring devices, and a third-party testingagency is entrusted to conduct regular sampling tests.

Linglong Tire strictly complies with laws and regulations such as the Water Pollution Prevention and Control Law of the People's Republic of China, the Atmo-spheric Pollution Prevention and Control Law of the People's Republic of China, the Law of the People's Republic of China on the Prevention and Control of Envi-ronmental Pollution by Solid Wastes, and the Law of the People's Republic of China on the Noise Pollution Prevention and Control, as well as the managementregulations of the operation location. By developing systems such as the Wastewater Control Management Procedure, the Exhaust Gas Control ManagementProcedure, the Solid Waste Control Management Procedure, and the Pollutant Reduction Plan, the Company sets the reduction benchmark value. LinglongTire plans to reduce the waste generation per ton of products by 5% compared with 2024 by 2030, and decomposes the indicators on a monthly and quarter-ly basis. The Company conducts regular supervision and evaluation of the reduction process.To further understand the impact of the Company's production and operation on the residents of the surrounding communities, Linglong Tire regularly visitsthe residents around the manufacturing base, which helps the Company take corresponding measures to reduce the impact on the local community. LLITpays regular visits to the surrounding factories and residents, and understands the odor diffusion situation, to further improve the Company's requirementsfor the up-to-standard treatment of exhaust gas and enhances the effect of exhaust gas collection and treatment.

The exhaust gas generated during the production and operation process of Linglong Tire mainly includes the exhaust gas from tire preparation, as well asthe boiler exhaust gas of the Dezhou base and the Guangxi base. The types of pollutants include particulate matter, sulfides, malodorous factors, volatileorganic compounds, etc.The Company applies advanced environmental protection facilities and processes to improve the treatment effect. Hubei Linglong and Jilin Linglong useadvanced industry processes such as activated carbon adsorption + catalytic combustion and zeolite rotor + RTO (Regenerative Thermal Oxidizer). DezhouLinglong uses the activated carbon adsorption + catalytic combustion process. Both the treatment effect and the efficiency are significantly improved.In 2024, the Company began to transform the exhaust gas treatment facilities, introducing cutting-edge eco-friendly treatment process facilities such asRTO equipment and activated carbon adsorption equipment. After the transformation is completed, the exhaust gas treatment efficiency is increased from60% to 95%.

?Circulating cooling blowdown water?Wash water generated by the exhaustgas treatment system?Ground cleaning wastewater

?Wastewater for pure water preparation?Domestic sewage after pretreatment

?Chemical oxygen demand?Ammonia nitrogen

Completed. In 2024, the wastewater discharge per unit product decreasedby 11.76% compared with 2023.

Wastewater Reduction Targets and Progress of Linglong Tire in 2024

Wastewater dischargeper unit product

Decreased by 3%compared with 2023

Completed. In 2024, the VOCs emission per unit product decreased by 12.5%compared with 2023.

Completed. In 2024, the particulate matter emission per unit product decreasedby 4% compared with 2023.

Exhaust Gas Reduction Targets and Progress of Linglong Tire in 2024

VOCs emission per unitproduct

Particulate matter emis-sion per unit product

Decreased by 3%compared with 2023

Wastewater Categories and Treatment Methods of Linglong Tire

Wastewater type Pollutant category Treatment method

Indicator Target Progress

Exhaust Gas Collection Device

Indicator Target Progress

Emission and Waste Management

Exhaust Gas Management

The Company classifies and temporarily stores them in the hazardouswaste warehouse within each manufacturing base, and regularly handsthem over to qualified units for external transportation and disposal.The Company classifies and temporarily stores them in the generalsolid waste warehouse, and then hands them all over to qualifiedthird-party units for recycling and disposal.The Company has it centrally collected by the local environmentalsanitation authority and then sent it to the local waste treatmentplant for centralized treatment and disposal.

Hazardous waste such as waste engine oil,laboratory waste liquid, and chemical pack-aging materialsGeneral industrial solid waste such as wastesteel cord, fiber cord fabric, waste steel wire,and waste rubber edgesDomestic waste

Waste Management

Noise Management

The noise pollutants generated by Linglong Tire mainly come from the compressors of the power station and the hydraulic power station. The Companyencloses equipment and facilities with noise hazard factors or undertakes noise reduction treatments to reduce the impact of noise decibels on the envi-ronment.

Note? Comparing with the existing hazardous waste types in 2023, the Thai government has listed carbon black and carbon black packaging bags as hazardous waste in 2024, and this

part is not counted in the statistics of the reduction plan.Note? The total amount of general industrial solid waste per unit of product in 2024 is 14.95% less than that in 2023.

Waste Categories and Management Measures of Linglong Tire

Hazardous waste

Completed

Total amount of hazardous waste per unit product

Total amount of general industrial solid waste per unit product

Decreased by 2% compared with 2023

Decreased by 3% compared with 2023

Indicator Target Progress

Category Types of waste Management measures

Non-hazardous waste

Linglong Tire formulates relevant control procedures for waste, stores and disposes of waste according to regulatory requirements, and reduces the envi-ronmental impact of waste. The Company formulates the Hazardous Waste Management Plan and the Hazardous Waste Reduction Plan every year, andachieves the reduction target through measures such as process substitution and management improvement.

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Ecosystem and

Biodiversity Conservation

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

?As the first tire company in the Chinese mainland to join the Global Platform for Sustainable Natural Rubber (GPSNR), Linglong Tire publicly released and continuously implements the Sus-tainable Natural Rubber Policy. The Company promises to purchase natural rubber produced in a way that does not cause deforestation or reduce high conservation value (HCV). LinglongTire actively enables cooperation with stakeholders, and collaborates with suppliers to promote the construction of a sustainable natural rubber supply chain. In September 2024, the Com-pany submitted its annual report to GPSNR and passed the review.?To meet the requirements of the EUDR, Linglong Tire establishes a supplier due-diligence system. The Company conducts on-site visits, risk assessments, and risk mitigation for suppliers

and rubber plantations.?For new construction projects, Linglong Tire strictly follows national laws and regulations and relevant regulations on the ecological protection red line of the operation location. The Com-pany conducts investigations on the ecological status of the project construction site and analyzes the possible ecological impacts of the project. Linglong Tire strengthens the whole-pro-cess management of soil and water conservation to reduce surface disturbance and vegetation damage.?LLIE conducts quarterly follow-up investigations on the biodiversity around the base and issues relevant reports. As of the end of 2024, no abnormal situations or adverse impacts havebeen monitored.?The Company includes afforestation activities in its corporate sustainability plan and encourages each manufacturing base to actively participate in tree-planting activities. In 2024,Guangxi Linglong carried out a tree-planting activity with the theme of "Fulfilling the obligation to plant trees and jointly building a beautiful Linglong". A total of 252 people participated inthe activity, and 157 Washingtonia filifera were transplanted. As of the end of 2024, the actual total greening area of the Company was 1.925 million m

?The Company plans to launch a sustainable funded project in Xishuangbanna, Yunnan in 2025. The Company will jointly carry out projects with external parties, such as ecosystem resto-

ration and the promotion of sustainable natural rubber cultivation and management, aiming to promote the restoration and balance of the local ecosystem and implement effective biodi-

versity conservation.

Biodiversity Conservation Measures of Linglong Tire

Membership of indus-try organizations

Tree-planting Activity

Planning funded projects

Organizingtree-planting

activities

Conducting regular

monitoring

Strengthening soil and

water conservation

Meeting EU requirements

Natural rubber is an important raw material for tire manufacturing. There is a mutual influence between itscultivation, extraction, and the ecosystem and biodiversity. Against the backdrop of the release of the ChinaNational Biodiversity Conservation Strategy and Action Plan (2023-2030) by the Ministry of Ecology and Envi-ronment of China and the upcoming implementation of the EUDR, Linglong Tire continuously promotes eco-system and biodiversity conservation. The Company strictly complies with laws and regulations such as theForest Law of the People's Republic of China and the Regulations on Nature Reserves, as well as the manage-ment regulations of the operation location. Linglong Tire also follows international conventions like the Con-vention on Biological Diversity and national strategies, and implements the business concept of "lucid watersand lush mountains, green development".The Company continuously strengthens biodiversity conservation from aspects such as project construction,daily production and operation, and external cooperation, contributing its own strength to global biodiversitygovernance and the achievement of the goals of the Kunming-Montreal Global Biodiversity Framework.The production and operation sites of the Company in various countries and regions carry out work such as siteselection for factories and ecological status surveys in accordance with regulatory requirements. The regionswhere the manufacturing bases are located all conform to the overall national and regional plans, not within thescope of ecological protection red lines. There are no natural reserves, key ecological function areas, or otherareas with important ecological functions or ecologically sensitive and fragile areas in the surrounding areas.Therefore, the production and operation have little impact on the ecosystem and biodiversity.

Ecosystem and Biodiversity Conservation

Innovation-driven

Safety and Quality of Products and Services

Data Security and Customer Privacy Protection

Supply Chain Management

Social

Smart Linglong,

Crafting High-Quality Tires

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Innovation-driven

Linglong Tire follows a closed-loop process from risk identification to monitoring and management, to systematicallyassess and rank relevant risks, and formulate targeted response measures. The Company establishes a continuousmonitoring mechanism to dynamically track the implementation effect. Linglong Tire continuously exerts efforts inboth intelligent manufacturing and intelligent retail to ensure the effective implementation of the digital strategy.Impacts, Risks,and Opportunities

Management

Risks, Opportunities and Response Strategies Related to Digital Transformation Identified by Linglong Tire

Digital transformationDriven by the global wave of digitalization in the manufacturing industry, the tire industry is undergoing a profound transformation centered around intelligence.Based on accelerating the industrialization process, the Company empowers its business through intelligent manufacturing and intelligent retail, achieving inter-connection among the supply chain, manufacturing chain, and marketing chain to provide customers with higher-quality products and better services.

Innovation-driven

?The Company formulates a digital transformationstrategy to promote digital transformation in bothintelligent construction and intelligent retail.?The Company reasonably plans funds and focus-

es on investing in advanced technologies, toimprove digital capabilities.?The Company promotes organizational and cultur-

al change and improves employees' acceptance ofnew technologies by training and recruiting digitaltalents to build a team with digital skills.?The Company establishes a complete data secu-

rity management system to protect corporate andcustomer information.

Medium and long termShort, medium, and long termMedium and long termMedium and long termMedium and long termMedium and long term

Increase in operating costsDecrease in operating incomeIncrease in operating costsLoss of corporate fundsIncrease in operating incomeDecrease in operating costsIncrease in operating income

Technical risksData security risksRisks of organizationaland cultural changeInvestment risksOpportunities forproduction efficiencyMarket opportunities

Digital Transformation Management Process of Linglong Tire

The Company cooperates with Tencent Cloud and Huazhi IMT to build a global industrial and intelligent retailplatform, integrate data resources, collect market, customer, and technological information, and provide datasupport for digital transformation.The Company identifies and assesses possible risks, such as technological implementation risks, data securi-ty risks, and market adaptation risks, to fully consider potential risk factors.Based on the assessment results, the Company ranks various risks and prioritizes the handling of high-priorityrisks that may have a significant impact on the business to ensure the effective allocation of resources.The Company formulates corresponding response measures for the identified risks. For example, by cooper-ating with Tencent Cloud and utilizing its technologies such as cloud computing, big data, and artificial intelli-gence, it enhances the Company's digital capabilities and reduces technological implementation risks.The Company establishes a continuous monitoring mechanism to track the implementation effect of digitaltransformation measures, promptly detect and correct deviations, and ensure the effective promotion of thedigital strategy.

Information collection

Risk assessmentRisk ranking

Measure formulation

Monitoring implementation

Risks/opportunity category Impact period Financial impact Response strategies

Process Specific measures

Risk

Oppor-tunity

Digitaltransformation

Intelligentmanufacturing

Intelligentretail

Governance

The Company continuously improves the construction of the digital transformation system, and formulates the Regula-tions for the Management of Informatization Projects. The Company has established a leading group for digital transfor-mation composed of senior leaders and heads of various functional departments. This group is responsible for strate-gic decision-making and promotion of digital transformation to ensure the efficient execution of projects.

During the digital transformation process, the Company faces risks such as technological risks, data security risks, andrisks of organizational and cultural change. The Company actively adopts response strategies and formulates a cleardigital transformation strategy.With identified direction and goals of digital transformation, the Company prepared the Outline of the Medium-andLong-Term Strategic Development Plan (2020-2030) and the intelligent transformation plan for 2020-2030 to promotethe construction of four-orientation factories featuring automation, digitalization, intelligence, and unmanned toimprove production efficiency and innovation capabilities. The Company formulates a "new retail" strategy, and jointlydevelops a smart marketing cloud platform with Tencent and Huazhi IMT to connect the information chain of "facto-ry-distributor-store-consumer", and construct an efficient upstream-downstream collaboration system.

Strategy

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Intelligent manufacturing

Linglong Tire continuously promotes the construction of four-orientation factories featuring automation, digitalization, intelligence, and unmanned opera-tions at each manufacturing base. The Company implements the lean management model, and comprehensively promotes the construction of intelligentmanufacturing factories. The Company has completed the intelligent construction projects such as the automatic conveyance of tire blanks, the AS/RS forcomponents and raw materials, and the commissioning of automated guided vehicles (AGV) at the Passenger Car Radial (PCR) Tire Factory No. 6, the Truckand Bus Radial (TBR) Tire Factory No. 2, Liuzhou Factory, Thailand Factory, and Serbia Factory. In 2024, the Company put 27 sets of automated projectsinto use, and 17 sets of automated projects are under construction.Construction Progress of the Four-orientation Factories of Linglong Tire in 2024

Linglong Tire Intelligent Factory

Development of theQuality ManagementSystem (QMS)

Development of theEnterprise Asset Man-agement System(EAMS)

Development of the

data monitoring and

analysis platform

?The Company integrates 9 information systems to obtain production and operation data, covering six categories ofdata analysis including production, quality, operation, warehousing, sales, and finance, and establishes digital models.?The Company develops and establishes more than 50 business processes for the whole process management ofequipment procurement, use, maintenance, etc.?The Company realizes 13 functions such as equipment management, tooling management, mold management, equip-ment emergency plan management, and equipment safety management.?Based on the overall product quality information, the Company realizes the function development of 13 major catego-ries, including design quality, process quality, incoming quality, and supplier quality. All quality information is uniformlyintegrated into one platform to achieve quality data analysis, quality anomaly early warning, and quality improvementtracking, transform the original quality management mode, and improve management efficiency.?The Company distributes, upgrades, and abolishes various management standards and management documentswithin the Company according to a unified process through document management. Integrated with the manufactur-ing execution system (MES), the documents applied to the production site are pushed to the corresponding productionlines by category, promoting paperless operation and improving the efficiency of document distribution.

In 2024, Linglong Tire Intelligent Factory was once again shortlisted in two important lists of the Ministry of Industry and InformationTechnology (MIIT).

“Linglong Big Data Platform Based on Artificial Intelligence” was successfully shortlisted in the Ministry of Industry and InformationTechnology's “Typical Application Cases of Artificial Intelligence Enabling New Industrialization of MIIT”, which realizes real-timemonitoring and optimization of the production process by collecting and analyzing huge amounts of production data, and greatlyimproves the production efficiency and product quality.The “High-end Tire Whole-Process Data-Driven Intelligent Factory” was shortlisted in the Ministry of Industry and Information Technol-ogy's “Excellence-level Smart Factory (First Batch) Project List”, which marks Linglong Tire's leading position in the field of intelligentmanufacturing. The factory realizes the intelligent management of the whole chain from raw material purchasing to finished productleaving the factory through the whole-process data driving. Each link is subject to precise data analysis and optimization, ensuringhigh product quality and consistency.

[Case] Promotion of the Visualization Dashboard FunctionThe Company improves the visualization dashboard, and quickly andeffectively conveys management information to employees throughvisual means, improving work efficiency and management quality. Thedashboard displays the status of the production site in real time, enablingmanagers to quickly grasp abnormal situations and take measures. Bydisplaying quality standards on the dashboard, it helps employees clarifyquality requirements, reduce the occurrence of quality problems, andensure the stability and improvement of product quality.

Visualization Dashboard

List of Typical Application Cases of Artificial

Intelligence Enabling New Industrialization

List of Excellence Level Smart Factory (First Batch) Project Announcement

"Atlas Vehicle Main-tenance Workshop"

platform

"Atlas TruckersHome" platform

[Case] Atlas Truckers Home: One-stop DigitalService for Truck DriversAtlas Truckers Home is a leading platform inChina's automotive aftermarket. The platform iscommitted to providing car owners with onlinepurchasing and offline installation services fortires, maintenance products, and decoration proj-ects through an innovative intelligent retailmodel. With the deepening of the digital transfor-mation in 2024, Atlas Truckers Home enhancesthe customer experience through intelligentoperation and an omni-channel retail model, driv-ing the continuous growth of the business.

Project Achievements of Linglong Tire's Intelligent Retail in 2024

?The Company developed five major application terminals including the headquarters, operators, suppliers, stores,

and car owners, involving 34 major business processes.?The Company developed 41 operators and 700 auto repair shops as partners in 30 cities.?The platform reached 142,992 car owners and assisted each repair shop in launching various marketing activitiessuch as package cards, stored-value cards, and coupons.?The Company developed five major application terminals including the headquarters, operators, suppliers, stores,car owners, teams, and major customers, involving 50 major business processes.?The Company developed 73 operators and 1,028 auto repair shops as partners in 60 cities.?The platform reached 289,498 car owners and assisted each repair shop in launching various marketing activitiessuch as package cards, stored-value cards, and coupons.

Intelligent retail

The Company focuses on the transformation of the New Retail 3.0 project and the New Retail 2.0 project. The Company launches and improves the plat-forms of "Atlas Vehicle Maintenance Workshop" and "Atlas Truckers Home", and successfully realizes the new retail model of full-channel management ofupstream and downstream, and management of all businesses and scenarios. Currently, the platforms have been promoted to multiple provinces andcities, supporting whole-round after-sales service and retail operation, improving customer service efficiency and after-sales management level, andsaving a large amount of cloud resource consumption costs.

Introduction to Atlas Truckers Home

The Company sets digital transformation management indicators and targets, and continuously tracks the completionof the objectives to ensure the effective promotion of the digital transformation work.Indicators and

Targets

Annual completion rate of informatization projects 100% Completed

Annual completion rate of branch factory promotion 100% Completed

In 2024, the Company received the certifications of "The Largest Sales Volume of Passenger Car Tiresin China" and "The Largest Sales Volume of Tires for Global New Energy Vehicles" awarded by Frost &

Sullivan, demonstrating widespread market recognition.

Digital Transformation Management Targets and Progress of Linglong Tire in 2024Indicators Targets Progress

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

[Case] Accelerated the development of low-rolling-resistance productsThe Company uses FEA simulation technology to simulate the contact patch, rolling resistance, wet skid, noise, and durability, guiding the innova-tive design and application of the contour, pattern, structure, and low-rolling-resistance materials of high-end low-rolling-resistance products. Bythe end of 2024, the Company completed the development and market launch of ultra-low-rolling-resistance products in the specifications of12R22.5, 295/80R22.5, and 315/70R22.5 for long-distance trunk logistics transportation of commercial vehicles. The rolling resistance reachesClass A of the EU labeling laws, and the rolling resistance is 30% lower than that of similar ordinary products.

R&D innovation

Linglong Tire formulates a global R&D strategy of "Three Countries and Seven Regions"

. The Company establishes a global open R&D and innovationsystem, sets up a post-doctoral workstation, and builds innovation platforms such as a tire NVH laboratory and a dynamics laboratory. By the end of 2024,the Company had a national-level industrial design center, a national-recognized enterprise technology center, and a national-recognized laboratory.The Company continuously promotes product R&D innovation, and strengthens the development of tires for NEVs, low-rolling-resistance tires, and 3A prod-ucts to meet the market demand for high fuel economy under the national "carbon peaking and carbon neutrality" strategy. For the innovation of the Compa-ny's raw materials, please refer to the "Circular economy" section.By the end of 2024, Linglong Tire has participated in the formulation and revision of 188 international, national, local, and industrial standards, of which theCompany has presided over 25 in total.

Intellectual property protection

Linglong Tire strictly complies with laws and regulations such as the Patent Law of the People's Republic of China and the Trademark Law of the People'sRepublic of China, as well as management regulations in the places where it operates. The Company formulates systems such as the Intellectual PropertyManagement System, continuously strengthens the Company's intellectual property management, and improves employees' awareness of intellectual prop-erty management and protection. While protecting its own intellectual property, Linglong Tire ensures that it does not infringe on the intellectual propertyof others.In 2024, the Company organized 120 technical personnel and engineering equipment personnel from the bases in Zhaoyuan, Dezhou, Guangxi, Hubei, andJilin to participate in the patent risk prevention and control training. The training introduced the patent layout of Chinese enterprises and the risk preventionand control work in the development of domestic and overseas markets from aspects such as the layout of patent work, the establishment of a patent riskprevention and control system, the response to patent infringement warnings, the matters needing attention regarding standard-essential patents, and theAmerican patent litigation procedures and risk control.In 2024, the Company newly obtained 221 authorized patents, 11 approved trademarks, and 3 registered software copyrights.New and Cumulative Patents of Linglong Tire in 2024Number of new patents in 2024 Cumulative number of patents by the end of 2024

Note? The cumulative number of patents is the number of patents within the valid period.Note? "Three Countries and Seven Regions" include China (Zhaoyuan, Yantai, Beijing, Shanghai, and Jinan), Germany, and the United States.

51 invention patents

141 utility model patents

29 design patents

170 invention patents

632 utility model patents

597 design patents

[Case] Promoted the development of tires for new energy vehiclesThe Company is committed to the development of tires for NEVs. Through the research of new technologies such as low rolling resistance, silentsponge, and self-healing, the Company solves the problems of the driving range and noise of NEVs, making the products safer and enhancing thedriving experience of customers for NEVs.By the end of 2024, the Company's tires for NEVs have successfully been matched with two mainstream models of BYD, all-electric vehicles ofSAIC-GM-Wuling, as well as NEV manufacturers such as Nissan, Honda, Renault, Hongqi, Geely, Changan, Seres, and Leapmotor, ranking amongthe top in the industry in terms of tire matching for NEVs.

Safety and Quality

of Products and Services

Product quality managementThe Company produces passenger car and light truck radial tires, truck and bus radial tires, and off-road tires. The Company strictly complies with laws,regulations and relevant provisions such as the Product Quality Law of the People's Republic of China and the Provisions on the Administration of CompulsoryProduct Certification. Adhering to the quality management policy of "Customer Centered, Staff Oriented, Environmental Protection, Energy Conservation,Safe, Lean, Linglong Brand, Harmony, Reciprocity", the Company continuously improves the product quality management system.

After the EUDR regulation comes intoeffect, if the Company cannot ensurethat the production process of productsexported to Europe is deforestation-free,it may face compliance risks.

The two new national standards, thePassenger Car Tires and Truck Tires, putforward new requirements for the tirerolling resistance performance and therelative wet grip performance. If theCompany's products fail to meet therequirements of the new regulations, theymay face quality compliance risks.

The various production and testingprocesses may impact the key, import-ant and general characteristics of prod-uct quality.

If there are product quality problems orthe products do not meet customerrequirements, products may be returned.

?The Company formulated the Regulations on

EUDR Product Traceability Management andcarries out compliant procurement andproduction work in advance.?The Company gives priority to suppliers that

meet EUDR requirements, establishes andmaintains a due diligence investigationsystem, and strengthens supply chain audits.?The Company develops alternative materials

to reduce dependence on raw materialsinvolved in deforestation.

?The Company strengthens its R&D capabilities.?The Company purchases testing equipment forroutine inspections and performance verifica-tion.?The Company repositions its products based on

the improvement of product performance.?The Company identifies the influencing char-acteristics, prepares the Control Plan and theStandard Operation Procedures, and conductsmanagement and control according to theidentified control items and methods.

?The Company formulates a customer complaint

handling process and a returned product analy-

sis process, and improves product performance

and quality through feedback analysis.

Linglong Tire Product Quality Management System

Product Quality-related Risks Identified by Linglong Tire and Response Strategies

"5M1E" quality managementanalysis mode

Safety and Quality of Products and Services

Main management system documents

Instructions for Raw Material InspectionPackaging, Transportation, and Storage Requirements for RawMaterials for TiresRequirements for Raw Material Quality ControlNonconforming Product Control ProceduresDefective Tire Recall Management Procedures

Compliance risk

Product returnrisk

Risks of productquality affectedby productionand inspectionprocesses

?The Company trains the skills of personnel in key positions.?The Company uses high-precision production equipment and conductsregular equipment maintenance.?The Company improves the control of raw material quality.?The Company conducts quality inspections on products, and regularly

calibrates equipment and instruments.?The Company controls the temperature and humidity of the production

environment.?The Company promotes lean production and refined management.

Governance structure

5M1E

Man

Method

Environment

EnvironmentMeasurementMaterial

Machine

Re-inspection SectionEquipment Management DepartmentFinished Product Quality DepartmentAll-steel Process Quality DepartmentSemi-steel Process Quality DepartmentMixing and Raw MaterialQuality DepartmentExperimental CenterOE Quality Department

Quality Management Department

Risk categoryDescriptionImpact periodFinancial impactResponse strategies

Governance

Linglong Tire prepared standards and systems such as the Instructions for Raw Material Inspection, and established aQuality Management Department led by the Vice President. By adopting the "5M1E" (Man, Machine, Material, Method,Measure, Environment) quality management analysis mode to control the product quality, the Company continuouslyimproves the product quality management system, and maintains the stability of high product quality. In 2024, inresponse to the impact of the EU Deforestation Regulation (EUDR) on the Company's products, the Company newlyformulated the Regulations on EUDR Traceability Management to ensure compliance with EU requirements.

Strategy

In 2024, the Company actively identified risks related to product quality management and formulated response strate-gies in advance.

Medium andlong term

Decrease inoperating income

Medium andlong term

Increase inoperating costs

Short, medium,and long term

Increase inoperating costs

The Company has established indicators and targets of comprehensive quality management, implemented a system-atic tracking mechanism to monitor objective achievement, and developed a sustainable oversight framework toensure effective execution of quality management initiatives

Indicators and

Targets

Methods for Identifying Product Quality Risks of Linglong Tires?The Company uses Failure Mode and Effects Analysis (FMEA) to analyze possible failure modes in products and processes and their potential causes and effects.?The Company uses historical data analysis to identify patterns that may lead to future problems.?The Company uses market research and customer feedback to understand the actual performance of product quality and customer expectations.?The Company uses Fault Tree Analysis to identify the root causes of quality problems.?The Company uses Statistical Process Control (SPC) to monitor the production process to ensure the consistency of product quality.

The Company has formulated and published the Quality Policy and Product Safety Statement, established a rigorous product quality testing system and aproactive product quality testing and management mechanism. The Company conducts regular quality and safety testing of its products, identifies poten-tial product quality and safety risks, and undertakes preventive product quality inspection and management.

The Company has formulated the Nonconforming Product Control Procedures and the Defective Tire Recall Management Procedures to establish a compre-hensive product recall process. Concurrently, the Company has clarified the disposal process for nonconforming products and standardized the disposaland management of such products.

?In terms of banned substances in tires, the Company implemented a dual testing protocol involving both in-house and

third-party institutions. A total of 207 batches were sampled internally, while an additional 67 samples were submitted toexternal testing institutions. All results were satisfactory.?The Company conducted routine inspections on finished tires, covering 200 specifications of passenger and light truckradial tires, 94 specifications of truck and bus radial tires, and 10 specifications of off-highway tires. All inspected itemsmet the requirements of the corporate standards.?The Company conducted 12 product audits annually to verify continuous compliance of its quality management systemwith the updated industry standards and regulatory mandates.?Throughout the year, the Company consistently conducted evaluation activities for quality champions and advancedteams, fostering participation from all employees, across all processes, and in all aspects. As a result, a total of 171outstanding individuals were recognized as quality champions, and 153 teams were honored as excellent teams.?The Company launched a comprehensive quality awareness initiative, targeting senior, middle, and front-line managers

as well as front-line employees. This initiative included an in-depth article-by-article interpretation of the Nine LinglongQuality-related Red Lines. The Company strove to enhance the quality compliance awareness among all employees. In2024, the compliance rate for employees adhering to red line regulations remained at 100%.

Key Product Quality Management Measures of Linglong Tire in 2024

Disposal Measures for Nonconforming Products of Linglong Tire

Product quality testing

Quality system audit

Quality awareness training

Product Quality Management Targets and Progress of Linglong Tire in 2024

Tire recalls

100%

Completed

?Disposal methods: rework, repair, dispose, downgrade, and scrap.?Nonconforming semi-finished products that need self, mutual or special inspection for rework, repair, scrap and disposal shall

be labeled, isolated, stored and managed by the Production Department, and disposed of in accordance with the nonconformingproduct management measures issued by the Company's Research Institute.?Nonconforming semi-finished products, after rework or repair, shall be re-inspected by the Quality Management Department.The number of reworked or repaired items and the disposal details and date of rework or repair shall be recorded by the Produc-tion Department.?Disposal of such products shall be made in accordance with the review opinions of the Company's Research Institute.?Finished tires with appearance defects and within the scope of repair shall be re-inspected and judged after repair. Other non-conforming tires shall be disposed of as per the finished product inspection standards.?Special appearance requirements from customers shall be followed.?The Company's materials management office and relevant departments should ensure that nonconforming finished products

and products to be scrapped that are labeled and isolated in the warehouse are all enclosed or under controllable management.

Nonconformingsemi-finishedproducts

Aspects Specific measures

Indicator Target Progress

Percentage of each manufacturing base obtaining ISO 9001 andIATF 16949 certification for quality management system

Major accidents of product and service related safety and quality liability

No major accidents of product and servicerelated safety and quality liability

No tire recalls

Nonconformingfinished products

The Company ensures that the risks and opportunities are identified once a year by developing the Risk and OpportunityResponse Control Procedure and establishing a complete control and response process for risks and opportunities. TheCompany prioritizes the risks according to the identified severity, occurrence frequency, detectability, and risk matrixanalysis, and develops the Risk and Opportunity Response Measures.Impacts, Risks,and Opportunities

Management

Strategy

The Company regularly identifies risks related to customer service and actively formulates response strategies to con-tinuously boost service quality and customer satisfaction.

Customer Relationship Management

?Established a new retail platform and developed WeChat APP mini programs such as Linglong Chip Guarantee, Atlas

Truckers Home and Atlas Vehicle Maintenance Workshop to facilitate customer feedback and consultation.?Launch a dedicated 400 hotline service, operating 24/7 to provide round-the-clock customer support and profession-al consultation services.?Consistently expand its sales and service network coverage.?Establish a customer management system, implement hierarchical customer management, deepen cooperation and

enhance customer stickiness through periodic business visits, technical training, and terminal store meetings.?Conduct monthly market revisits to provide customers with comprehensive explanations of policies and claims

knowledge, and promptly address any customer problems.?Linglong Chip Guarantee Plan: Provide road risk guarantee for policy-related series products, i.e. compensation for

bulges caused by customers' personal misuse.?Roadside Assistance: Promptly provide customers with spare tire changing service through cooperation with third

parties.?Nationwide Warranty: After purchasing tires, customers can enjoy product services at any store nationwide.?Launch exclusive Atlas truck driver service.?Launch master and Ultimate Series high-end product series service support policies.?Complaint channels include 400 hotline and new retail platform.In 2024, the Company received 11 complaints about product quality issues, all of which have been properly handled inaccordance with the Customers' Complaints Handling Procedures. Procedure for Handling Customer Complaints

[Case] Strengthened communication with overseas customersIn March and July 2024, the Company held a meeting of distributors in theEuropean region and Middle East and Africa region at the Serbian plant, andsigned medium- and long-term strategic cooperation agreements withsome of the customers to further deepen the relationship with them.In September 2024, the Company held the celebration of mass production inthe Serbia plant and invited partners from all over the world to gather in Serbia.

Risks Related to Customer Service Identified by Linglong Tire and Response Strategies

Linglong Tire Customer Service Measures

Group Photo of Distributor MeetingCelebration Scene

Customer complaint risk

Customer attrition risk

Short, medium,and long term

Decrease in operating income

Risk category Impact period Financial impact Response strategies

Linglong Tire Customer Service Management System

Customer Service

Center

Nationwide

Warranty

RoadsideAssistance

Linglong Chip

Guarantee

Atlas Truckers

Home

Atlas Vehicle Maintenance

Workshop

Increase in operating costsDecrease in operating income

?Enhance customer service through the dedicated 400 hotline, empow-

ered by a comprehensive call tracking system to ensure consistentdelivery of high-quality telephone support.?Regularly carry out customer visit services, provide training and guid-

ance to customers, and solve customer problems in a timely manner.

Governance

Adhering to the service concept of "All for Customers", Linglong Tire has established a global marketing center directlyunder the President's supervision, within which the Marketing Department was established. The Company has alsoestablished systems such as the Service and Feedback Management Procedures and Customers' Complaints HandlingProcedures and has developed a comprehensive customer service management system. The Company seeks to con-tinuously bolster the quality of customer service, as well as customer satisfaction.

The Company continuously refines its customer relationship management process, managing customers through thecustomer relationship management (CRM) system based on classifications. The Company assigns business teams tohandle sales and relationship maintenance, strengthens pre-sales, in-sales, and after-sales customer service process-es, and establishes long-term and stable cooperative relationships with customers, in the hope of achieving mutualbenefit and win-win development.Impacts, Risks,and OpportunitiesManagement

The business department that receives thefeedback should timelyfill in the Disposi-tion Form for Customer Complaints andspecifythe urgency and severity of theproblem according to thecustomer'sdemand and market conditions.

The Company's Quality ManagementDepartment shall classifyand handle thecomplaints. After internal rectificationandprocessing, the relevant departments shallreply to the customerwith the solution results,and follow up the internal rectification.

The Company shall formulate recurrenceprevention measures,improve standarddocuments after validation of themeasures, andhorizontally assess theproblem rectification in each subsidiaryforpreventing recurrence.

Rectification AssessmentComplaint ReceiptResolution by Classification

Medium andlong term

Establishment ofplatforms for cus-tomer services and

communication

Customer relation-ship maintenance

After-sales service

Customer complaint

management

?Among Linglong Chip Guarantee activities, 4,599 coverage serviceswere provided to customers in the Lingerie Core coverage activities. Bythe end of 2024, a total of 20,535 protection services were provided.?In 2024, 1,972 nationwide warranty and roadside assistance stores were

set up, and a total of 13,181 stores were brought to fruition.?In 2024, a total of 11,304 hotline services and consultations were deliv-ered.?Throughout 2024, the Company conducted monthly market revisits,organizing a cumulative total of 5,236 store visits.?In 2024, Linglong Tire achieved a B95 in the Sustainability Assessment

Questionnaire 5.0 (SAQ 5.0).

Customer Management Targets and Progress of Linglong Tire in 2024

Customer satisfaction 97.75% 99.64%Number of violations of laws and regulations in marketing 0 0

Indicator Target Progress

The Company has formulated objectives related to customer management and established monitoring and superviso-ry mechanisms to ensure the effective implementation of customer management.Indicators and

Targets

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Data Security and

Customer Privacy

Protection

Linglong Tire primarily handles data and customer privacy information in its production and operational processes, including internal system data, basiccustomer information, intellectual property data, and other relevant information.The Company strictly adheres to the Data Security Law of the People's Republic of China, the Personal Information Protection Law of the People's Republic ofChina, the Measures for Security Assessment of Data Export, and other applicable laws and regulations, as well as the management regulations in its opera-tional locations. Linglong Tire has established a comprehensive management system for data security and customer privacy protection by formulatingpolicies such as the Data Management Regulations and the Cross-border Data Security Management Standards. The Company is making continuous effortsto advance the progress of its ten-year plan for information security. In 2024, in accordance with the ISO 27001 and TISAX 6.0 standards, the Company con-ducted reviews, updates, and enhancements of its internal management systems. A total of 21 internal management systems, including the Data ProtectionManagement Regulations and the Data Management System, were published. The organizational structure for data security management was also updatedto further bolster the data security and customer privacy protection system.

The Company consistently maintains its internal system operations through the PDCA cycle. Annually, the Company conducts comprehensive internalsystem audits, performs system updates and evaluations, and implements self-assessments to identify any potential problems, followed by correction andenhancement. In 2024, the Company successfully completed a thorough self-assessment of its data security capabilities and cross-border data protectionmeasures. The assessment revealed no significant vulnerabilities, and no reported incidents of information security breaches or violations of customerprivacy throughout the year.

The Company conducted a version upgrade of its real-time monitoring andalert platform for basic equipment, resulting in an 80% increase in thenumber of monitoring hosts and a 65% increase in the number of monitor-ing items. The number of triggers was enhanced by 90%. The data centersof each manufacturing base incorporated a unified security managementand comprehensive audit system, enabling real-time server monitoring andrisk alerts.The Company conducted 10 vulnerability scans on internal network devicesand 4 penetration tests, achieving a total rectification rate of 90%. All issuesrelated to externally accessible systems were fully rectified, thereby bolster-ing the Company's servers, databases, and network infrastructure.The Company organized 2 training sessions on backup management, 2training sessions on emergency drills, and 16 disaster recovery drills.These sessions covered various scenarios, including data center opera-tions, network attacks, database recovery, and information securityincidents. Through these efforts, the Company continuously refined itsemergency response mechanisms and uplifted its emergency responsecapabilities. Six database backup recovery tests were conducted tovalidate the efficacy of the backups.The Company delivered two company-wide information security aware-ness training sessions, encompassing email security protocols, dataprotection measures, personal information safeguarding, and risk mitiga-tion strategies. The Company conducted three specialized trainingsessions focusing on account security and email protection, specificallydesigned to boost employees' understanding and implementation of pass-word management policies, secure storage practices, and proper usageprotocols.

Goal: The Company is planning that by 2030, Linglong Tire will realize trustcertification for its important systems, complete a number of internationaland domestic information security certifications, and enhance brandsecurity and competitiveness.

Ten-year Plan for Information Security for Linglong Tire

Linglong Tire Information Security Organization Responsibilities

Departmental liaisonAudit TeamInformation Technology

Department

Information SecurityManagement CommitteeInformation Security Leading Group

Data Security and Customer Privacy Protection

2021-2023Pass TISAX VDA-ISA 5.0 anddomestic network ratingprotection certification

2023-2025Operate the information securitysystem in a PDCA manner andpromote it throughout thecompany

2025-2028

Key protection of five majorsecurity points, integratinginformation security systemwith production, office, andoperation, and comprehensivelyimproving technology andmanagement

2028-2030

Establish a comprehensive andmature information securitymanagement system, achievingworld-class information securitymanagement level

Main Measures and Achievements of Data Security and CustomerPrivacy Protection of Linglong Tire in 2024

Systemupgrade

Vulnerabilityscanning andrectification

Specializedtraining andemergencydrills

Informationsecurityawarenesstraining

Information Securi-

ty ManagementCommittee

Information Security

Leading Group

Relevant headsand departments

Linglong Tire Information SecurityOrganization Structure

?The departmental liaison is accountable for enforcing information security policies, standards, and procedures, con-ducting regular departmental information security risk assessments, and facilitating the successful execution of infor-mation security audits.?The Information Technology Department is responsible for maintaining the Company's information security manage-

ment system, formulating information security management-related procedures and plans, organizing and coordinatingthe departments to carry out risk assessment, and conducting regular information security management audits.?The Information Security Audit Team is responsible for formulating information security audit plans, carrying out audits,issuing audit result reports and tracking the progress of improvement proposals.

[Case] Conducted specialized training sessions on accountand email securityIn July 2024, the Company conducted specialized training sessions onaccount and email security, with participation from 101 certified informa-tion security officers. The training was designed to enhance employeeawareness in key areas including password management policies, accountsecurity protocols, and prevention of spam and phishing attempts.

Specialized Training Scene

Note? 1. TISAX VDA-ISA 5.0: The VDA-ISA (Information Security Assessment) standards and TISAX certification were established and introduced by the Verband der Automobilindustrie (VDA) based on the

IS0 27000 Standards. 2. PDCA: The information security management system is developed under the PDCA Cyclic Model, which is divided into four stages: security risk assessment, the planning ofsystem construction program (Plan), the establishment and implementation of information security management system (Do), the assessment of system performance (Check), and continuousimprovement (Action)

? In 2024, the Linglong New Retail System passed the certificationof Cybersecurity Level Protection Assessment Level 2, and therating of the Linglong Tire Production Business ManagementSystem remained at Cybersecurity Level Protection Level 2.? In November 2024, the Company newly obtained the certificationof TISAX Prototype Test Vehicle Handling based on the originalTISAX label, which further validated the Company's ability tomanage the safety of prototype test vehicles.

?Be responsible for decision-making and evaluation of information security management.?Review and approve information security policy and strategy.

?Decide on information security incidents and judge the severity of information security incidents.?Validate the findings of the information security assessment, coordinate and facilitate the implementation of

improvement initiatives, and oversee the remediation of critical risks.?Oversee and review internal information security programs.

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Supply Chain

Management

Damage to the environmentcaused by suppliers

Governance

The Company has established internal policies including the Regulations on Supplier Sustainability Management and theRegulations on Management of Infrastructure Builders and Service Providers to continuously enhance its supply chain man-agement system. The Supply Chain Committee is responsible for supplier management, risk control, and sustainablemanagement supervision. In 2024, to further the sustainability of the supply chain, the Supplier Management Section ofthe Company is tasked with strengthening the selection of qualified suppliers, managing their day-to-day sustainabilitypractices, and enhancing risk prevention and control measures, thereby reinforcing the overall supply chain management.

Medium and long term

Short, medium, andlong term

Short, medium,and long term

Short, medium, andlong term

Linglong Tire Supplier Category

Major Supply Chain Management Risks Identified by Linglong Tire and Response Strategies

Supply chainsecurity risk

Supplierenvironmen-tal andsocial risk

Suppliers involved in raw materials related to tire safety or laws and regulations

Suppliers of raw materials that are not related to tire safety or laws and regulations, but havean important impact on the quality or performance of tires or rubber materials according topast experience

Suppliers of raw materials that are not directly used in the process of tire production or haveno important impact on the quality and performance of tires or rubber materials

Contractors that enter the plant to carry out construction

Organizations that do not enter the plant to carry out construction or need to enter the planttemporarily to carry out services, like design, supervision, survey, testing, and supply

?Set up EUDR team, establish and improveEUDR due diligence system to ensure thatsuppliers' products comply with regulatoryrequirements.

?Promote supplier diversification, ensure

stable supply, and rationally select procure-ment timing to reduce procurement costs.

?Require suppliers to comply with the Supplier

Code of Conduct and sign a letter of commit-ment.

?Establish and boost supply chain risk assess-

ment tools.

?Improve supplier review mechanism and

conduct annual/quarterly inspections basedon supplier risk ratings.

?Regularly promote sustainability to suppliers.

?Further the supplier management system,

clearly require suppliers to establish a sus-tainability management system, and enhancethe constraints on secondary and tertiarysuppliers.

Supply Chain Management

Category Definition

Risk category Risk incident Impact period Financial impact Response strategies

Decrease in operatingincome

Decrease in operatingincomeIncrease in operatingcosts

Decrease in operatingincome

Violation of interna-tional regulations

Risk of raw materialsupply and pricefluctuation

Forced labor of suppliers

Supplier corruption

Other violations of nationallaws and regulations andthe Company's SupplierCode of Conduct

Infrastructure service providers

Infrastructure builders

General suppliers

Important suppliers

Key suppliers

Strategy

The Company is dedicated to building a green, secure, and transparent supply chain, systematically identifying, assess-ing, and mitigating risks associated with supply chain operations while proactively developing response strategies.

Raw materialsuppliers

Infrastructuresuppliers

Linglong Tire's supplier portfolio is primarily categorized into two key segments: raw material suppliers and infrastructure suppliers.

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Indicators and

Targets

Supply Chain Management Targets and Progress of Linglong Tire in 2024

Completion rate of supplier site audit program 100% 100%

Signing rate of the Anti-bribery Agreement 100% 100%

Indicator Target Progress

Linglong Tire Supply Chain Risk Management Process

Key Supplier Management Measures and Achievements of Linglong Tire in 2024

Selection and managementof potential suppliers

Categorized management ofqualified suppliers

Before onboarding, the Company shall collect suppliers' qualification information and quality capability information.Linglong Tire shall conduct public opinion monitoring, compliance screening, and supplier assurance questionnaire(SAQ) assessments. Only suppliers deemed to be of medium or low risk may be included in the list of qualified sup-pliers.The Company shall implement ongoing public opinion monitoring and compliance screening for all suppliers, cou-pled with periodic SAQ assessments based on the respective risk ratings. SAQ assessments shall be conductedannually for medium risk and every three years for low risk. For unexpected risk incidents, escalation and risk miti-gation processes shall be established.

?The Company revised the Regulations on Supplier Sustainability Management, added SAQ assessment guidelines,and human rights/accommodation environment assessment and evaluation rules, and increased the require-ments for internal audits.

?The Company enhanced its EUDR due diligence system and formulated a series of doc-uments, including the EUDR Due Diligence Management Requirements, EUDR ProductTraceability Management Regulations, EUDR Declaration of Conformity, EUDR Suppli-ers' Informed Consent, and EUDR Audit Report Template, among others.?The Company conducted on-site EUDR due diligence at 11 EUDR factories. The due

diligence focused on the suppliers' EUDR due diligence systems and production trace-ability management. Through on-site visits, the Company gained insights into the sup-pliers' rubber plantation and processing, as well as their measures to address relevantchallenges. These efforts ensured that the suppliers' products are in full compliancewith the EUDR regulatory requirements.Link Measures

Aspects Specific measures

Improvement of managementsystem

Management capacityenhancement

EUDR response

Supplier assessmentand audit

Promotion of RSCI certi-fication for suppliersSupplier training

Supplier's environmentalmanagement

Anti-corruption man-agement for suppliers

On-site EUDR Due Diligence

at Factories

?The Company organized specialized training programsfor relevant personnel, including SA8000 Internal Auditorcertification, SAQ, and human rights & environmentreview. In November 2024, to enhance supply chain man-agement in the areas of human rights, social responsibil-ity, and environmental sustainability, the Company con-ducted comprehensive SA8000 Internal Auditor trainingsessions targeting supplier management professionalsacross multiple categories: raw materials, spare partsand molds, infrastructure, equipment, information tech-nology, logistics, and general services.

Training Scene

The Company has implemented a robust supplier management framework, featuring a comprehensive risk assessmentmechanism during the supplier onboarding process. Based on the risk rating outcomes, the Company enforces a tiered riskmanagement approach, mandating suppliers to implement stringent measures to mitigate potential supply chain risks.The Company has established a comprehensive Supplier Code of Conduct, which outlines explicit requirements across multi-ple dimensions including human rights protection, occupational health and safety standards, business ethics compliance,and environmental responsibility. This initiative significantly enhances its sustainable supply chain management practices.Impacts, Risks,and OpportunitiesManagement

?The Company advanced the development of the SAQ platform to evaluate suppliers' sustainability performance across

multiple dimensions, encompassing environmental, social, and governance (ESG).?The Company undertook annual routine audits of its raw material suppliers, with a total of 113 suppliers undergoing suchaudits in 2024.?In line with the requirements of the RSCI platform and customer sustainability standards, the Company actively promotedRSCI audits among its suppliers. In 2024, four suppliers successfully completed the audits and certification process andobtained the relevant labels.?The Company organized four supplier training sessions, focusing on quality management, publicity and implementation

of sustainability requirements, and SAQ training among other topics.?Mandatory carbon footprint reporting has been implemented, with 135 suppliers having successfully submitted their

reports to date, and organized suppliers to submit carbon emission reduction plans.?According to the standard requirements for banned substances issued by the Research Institute, suppliers were required

to submit banned substance test reports or banned substance compliance statements every six months, and the number

of suppliers submitting reports or statements accounted for 100% in 2024.?The Company signed the Anti-bribery Agreement with suppliers, which ensured the fulfillment of business contracts

between the parties and avoided corruption incidents.

Aspects Specific measures

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Work Safety

Employees

Community Co-constructionand Public Welfare Charity

Social

Harmonious Linglong,

Contributing to a Bright Society

Work Safety

Safety education and labeling managementsystem

Safety Prevention and inspection manage-ment system

Accident and work-related injury manage-ment system

Other safety management systems

Safety assessment system

NameCategoryWork Safety Management System of Linglong Tire

Regular Safety Meeting System, Safety Education and Training System, etc.

Safety and Health Labeling and Warning System, Hazard Safety Management System, Equip-ment Safety Management System, Electrical Fire Prevention Management System, etc.

Work-related Injury and Insurance Management System, Accident Reporting Procedures, Investi-gation and Handling System, etc.

Work Safety File Management System, Traffic Safety Management System of the Plant, "ThreeSimultaneous Management" Regulations for Construction Projects, etc.

Safety Responsibility Assessment System and Assessment Methods

Governance

The Company upholds the work safety management philosophy of "Safety First, Prevention Foremost, Comprehensive Management, Full Participation, and Continuous Improvement". With "Zero Accidents" as its unwavering goal, the Company continuously refines its management of occupational health and safety to provide a safe workingenvironment for its employees.

The Company strictly complies with pertinent laws and regulations, including the Work Safety Law of the People'sRepublic of China and the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases.The Company has formulated the Safety Management System to establish a comprehensive and robust framework forwork safety management.The Company has established a Work Safety Committee (hereinafter referred to as the "WSC"), chaired by the Presi-dent, to ensure annual investments in safety initiatives. The WSC carries out the work safety management under thesupervision of the Board of Directors and the Sustainable Development Committee.

Strategy

The Company prioritizes work safety management as a fundamental operational imperative. The Company has imple-mented a comprehensive identification system that proactively detects potential work safety risks and hazards. Thissystematic approach includes the development of a detailed risk and hazard inventory, complemented by scientifical-ly-driven work safety management protocols. These measures collectively ensure the protection of the employees andthe uninterrupted continuity of production operations.

Types of risks and hazardsImpact periodFinancial impactManagement strategy

Risks of injuryto personneland equip-ment

Increase in operating costsDecrease in operating income

Short, medium,and long term

Occupationaldisease risks

Medium andlong term

Main Risks Pertaining to Work Safety Identified by Linglong Tire and Response Strategies

?The WSC holds regular meetings to analyze

safety-related issues.?The Company implements tiered risk control,

and carries out regular hidden danger investi-

gation.?The Company regularly hires third-party

experts to diagnose the Company's safety

status and rectifies the identified issues in a

timely manner.

?The Company organizes annual testing of

occupational hazards at each production site,

and improves sites, equipment and facilities

where occupational hazards are present.?The Company provides relevant employees

with labor protection appliances.?The Company regularly conducts health

checkups for each employee exposed to

occupational disease risks, and established

the Occupational Health Monitoring File.

Object strikes,vehicle injuries,mechanical injuries,lifting injuries, elec-tric shock, fire, fallfrom height, etc.

Dust, noise, harmfulgas, high tempera-ture, etc.

Note? "Hazardous position" refers to the position of exposure to occupational hazardous factors.Note? Occupational diseases included in the statistics here cover the occupational diseases specified in the List of Occupational Diseases of the International Labor Organization, the

Classification and Catalog of Occupational Diseases of the National Health and Family Planning Commission, as well as the Serbian government's Rulebook on the Determination ofOccupational Diseases (applicable to LLIE), and the Thai government's decree: the Regulations on Standards for Health Examination of Employees Engaged in Risk Factor-RelatedWork, and the Regulations on the Health Records of Employees Engaged in Risk Factor-Related Work and Procedures for Handling Abnormal Health Examination Results or Work-RelatedIllnesses, as well as Preventive Measures (applicable to LLIT) and occupational diseases listed in the relevant announcements of the Department of Labor Protection and Welfareof Thailand.

?A tiered risk control system was implemented, featuring regular hidden danger investigation, rectification and elimina-tion to support work safety. In 2024, each subsidiary recorded the number of hidden danger investigations of more than13,000, with the rectification rate of 100%.?Leveraging the PDCA cycle methodology, the Company systematically conducted regular risk identification anddetailed improvements for existing equipment and facilities. The Company phased out outdated and unsafe equip-ment and adopted process facilities with advanced design and comprehensive safety features, thereby ensuring thesafety of both personnel and machinery throughout the production process.

Indicator Target Progress

Number of safety accidents No fatal accidents in the whole year Achieved

Coverage rate of occupational disease physical examination

100% Achievedfor employees at hazardous position

Number of employees diagnosed with occupational diseases

0 Achieved

Rate of severe accidents ≤0.37 (in millions of hours) Achieved

Recordable work-related injury rate per million working hours ≤1.3 (in millions of hours) Achieved

Rectification rate of hidden dangers 100% Achieved

Rate of special operations personnel with certificate for work 100% Achieved

ISO 45001 certification passing rate of manufacturing bases 100% Achieved

?The Company conducted detection, notification, prevention, and pre-control of occupational hazards at the workplace. The

Company organized occupational health checkups for employees exposed to occupational hazards. Each unit implement-ed unified health monitoring file management, with designated personnel responsible for overseeing the process.?The Company developed comprehensive health and safety training programs, encompassing accident case studies, safety laws andregulations, fire safety, special operations, occupational health, identification of job hazards, and operational procedures. Theseprograms were designed to elevate employees' professional literacies in occupational health and safety across all dimensions.

?Each manufacturing base of the Company developed anEmergency Response Plan for Production Safety Acci-dents, and systematically planned and conducted emer-gency drills, encompassing comprehensive emergencydrills, specialized emergency drills, and on-site responseprotocols. In 2024, the Company conducted a total of 28fire emergency drills and organized 16 diverse on-siteemergency response drills across various locations.

Fire Emergency Drills

Hidden danger

investigation

Intrinsic safety of

equipment

Emergency drills

Occupational health

managementHealth and safety

culture develop-

ment

[Case] Organized health literacy knowledge contest

In November 2024, the Company hosted a health literacy knowledge contest, whichaimed to cite superior units and health champions by assessing their knowledge ofoccupational health policies and practices. This initiative served to enhanceemployees' professional competence and literacy in occupational health.

Work Safety Management Measures of Linglong Tire in 2024

Work Safety Management Targets and Progress in 2024 of Linglong Tire

Knowledge Contest Scene

The Company has established a comprehensive suite of safety management protocols, including the Hazard Identification, RiskAssessment, and Control Procedures. Utilizing advanced methodologies such as the LEC evaluation system, FMEA, and safetyinspection checklists, the Company systematically identifies potential safety hazards across all production processes. Thisapproach enables both qualitative and quantitative risk analysis, resulting in the development of the Hazard Identification andRisk Assessment Form and the Unacceptable Risk List.In 2024, the Company focused its work safety management efforts on several key areas, including hidden danger investigation,intrinsic safety of equipment, emergency drills, occupational health management, and health and safety culture development.

The Company has established work safety management indicators and targets, to continuously monitor the implemen-tation of safety measures, and enhance its safety management framework. In accordance with the requirements of theregulatory authorities in the locations of each factory, the Company has purchased workplace safety liability insurancefor all employees of the Guangxi Linglong and Dezhou Linglong. The total investment of safety production liabilityinsurance in 2024 is 246,600 RMB. By the conclusion of 2024, all of the Company's manufacturing bases have achievedISO 45001 Occupational Health and Safety Management System certification. Throughout 2024, the Company had nomajor safety accidents reported.

Impacts, Risks,and Opportunities

Management

Indicators and

Targets

Employees

Workplace diversity and inclusion

Recruitment Management Regulations, Employment Management Regulations, Internal Recruit-ment Management Regulations, Working Procedures for Rescuing Child Labor and ProtectingMinors, Working Procedures for Prohibiting Forced Labor, Management Measures for EmployeeRetention and Elimination, Anti-discrimination Management Procedure, etc.

Employee rights and benefits

Regulations on Attendance and Vacation Management, Wage Implementation Plan for Employeesof Tire Company's Branch Plants, Emergency Relief Measures for Employees in Difficulties,Procedures for Freedom of Association and Collective Bargaining, etc.

Employee training and development

Training Operation and Management Procedures, Title Promotion Management System, Cadreand Manager Training and Skill Level Evaluation Program, etc.

SectorName

Linglong Tire Employee Management Systems

Risks and Opportunities Pertaining to the Workforce Identified by Linglong Tire and Response Strategies

?Establish the dynamic management mechanism of "those who are capable are

promoted and those who are mediocre are dismissed".?Establish a reserve echelon training management system to ensure the Company'stalent reserve.?Optimize the training management system and formulate special training programsfor capacity improvement.?Carry out diversified recruitment and actively select candidates with different back-grounds and experiences.?Strengthen cross-cultural communication and training, and promote teamwork andcommunication efficiency by providing language training and other means.?Bolster inclusive culture and promote communication and integration between cultures.

?Conduct employee stability analysis and establish a turnover model.

?Establish a Human Rights and Labor Committee to manage human rights and labor

rights protection.?Regularly organize cadres and employees to participate in SA8000 social responsibil-

ity training.?Accelerate the cultivation of internationalized talents and increase the channels for

the introduction of overseas talents.?Enhance the integration of headquarters and overseas bases, set up foreign language

training and incentive mechanisms to improve the foreign language communication

ability and internationalization adaptability of domestic employees.

Governance

The Company has established a Human Rights and Labor Committee, overseen by the Board of Directors and theSustainable Development Committee, and spearheaded by the Human Resources Department. This committee isresponsible for the day-to-day management of various critical areas, including human rights, employee recruitment,protection of labor rights and interests, compensation and benefits, as well as occupational health and safety.

Strategy

With the core philosophy of people-oriented and harmonious development, the Company is committed to creating anequal, diversified and inclusive workplace, improving the compensation and benefit system, protecting the rights andinterests of employees, and providing employees with a wide range of growth and development opportunities. TheCompany identifies risks and opportunities pertaining to its workforce, developing comprehensive management strat-egies and implementing appropriate measures to proactively address these issues.

Opportunities ofhuman capital

Medium andlong term

Short, medium,and long term

Long-term

Risk/opportu-nity category

Impact period

Increase inoperating income

Decline in operat-ing income

Increase inoperating costs

Increase in com-pliance costs

Decline inoperatingincome

Financial impactResponse strategies

Risk of workplacediversification

Employeeturnover risk

Labor risk

International-ization adap-tation risk

Linglong Tire adopts a diverse range of employment types, including direct labor, re-employment after retirement, etc. The Company strictly abides by the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic of China and other laws and regulations as well as the management regulations of thelocations where it operates, to ensure the legal compliance of employment, to safeguard the rights and interests of the employees, and to foster a harmonious and stable labor relationship.

Giving Love to Female Employees on March 8

Women's Day

Free Medical Checkups

Lectures and Free Medical Consultations on the Topic of

"Caring for Women's Health"

Employee Recruitment and RetentionThe Company has formulated the Recruitment Management Regulations and other internal management sys-tems to continuously boost and standardize the recruitment process. The Company has formulated theWorking Procedures for Rescuing Child Labor and Protecting Minors and Procedures for Prohibiting ForcedLabor to eliminate the use of child labor and forced labor. In 2024, there were no incidents of forced or childlabor in the Company.Guided by the comprehensive production and operational strategy, the Company mandates all manufacturingbases to develop diversified talent acquisition plans in compliance with local regulatory requirements, whileformulating differentiated recruitment execution strategies tailored to regional talent market dynamics.The Company proactively identifies and attracts top-tier talent through a multi-channel recruitmentapproach, including internal mobility programs, digital recruitment platforms, executive search services formid-to-senior level positions, employee referral initiatives, campus recruitment drives, and university-indus-try collaboration programs. In 2024, the Company recruited a total of 4,535 people.

Players from China, Thailand and Serbia

The Company demonstrates a strong commitment to safeguarding the rights and welfare of its female work-force through comprehensive initiatives. These initiatives include enhancing occupational health and safetystandards specifically tailored for female employees, implementing regular gynecological health screeningprograms, and conducting specialized seminars on women's health. When female employees are in specialstages, like pregnancy and breastfeeding, the Company adheres to the philosophy of humanistic care. TheCompany provides special care and support through measures including flexibly adjusting working hours,reasonably arranging work tasks, and temporarily reassigning job positions when necessary. These effortsare aimed at safeguarding the physical and mental well-being of female employees.Workplace Diversity and Inclusion

[Case] Held the International Football Exchange Match

The first Linglong Cup International Football Exchange Match, themed "Global Linkage · Hand inHand", was successfully held in Zhaoyuan, Shandong Province. Employees from three countries—China, Thailand, and Serbia—participated in this event. This event enhanced communication andinteraction among employees from different countries and fostered mutual understanding and trust.

Diversity and Inclusion

The Company steadfastly upholds the principles of fairness, equity, and transparency in all its operations,demonstrating an unwavering commitment to fostering an inclusive and non-discriminatory workplace envi-ronment. In alignment with this commitment, the Company has established the Anti-discrimination Manage-ment Procedure, which guarantees equal access to professional development opportunities for all employ-ees, strictly prohibiting any form of differential treatment based on race, religious beliefs, age, disabilitystatus, gender identity, marital status, pregnancy, or organizational affiliations. In 2024, the Company had noemployee discrimination incidents. Linglong Tire's anti-discrimination working procedures can be found inLinglong Tire 2023 Sustainability Report.The Company is dedicated to forging a cohesive Linglong Tire community. Each manufacturing base tailorsa wide array of cultural activities to the distinct cultural contexts of different countries and regions. Theseactivities encompass diverse cultural and sports events, as well as initiatives that honor national andreligious traditions. By doing so, the Company unites Linglong employees from across the globe, therebystrengthening their sense of belonging and identification with the Company.

The Company maintains a strategic focus on workforce retention, having implemented the ManagementMeasures for Employee Retention and Elimination. The Company employs a three-phase managementapproach (pre-service, in-service, and post-service) to cultivate an optimal work environment, thereby signifi-cantly furthering employee retention.

The Company identifies potential risks associated with workforce management by conducting employee stability and satisfaction surveys encompassing five critical dimensions, includingexternal environmental factors, organizational structural elements, job-related aspects, psychological considerations, and individual personal factors. To address the identified risks andprioritize employee concerns, the Company has implemented a risk management framework focusing on three strategic pillars, which are fostering workplace diversity and inclusion, safe-guarding employee rights and enhancing welfare, and developing robust training and career advancement initiatives.

Impacts, Risks,and OpportunitiesManagement

Campus specific job fair

[Case] Organized specialized campusrecruitment fairsThe Company proactively engages with careerservice centers of both provincial and nationaluniversities, including but not limited to Shan-dong University, Harbin Institute of Technology,Shandong University of Technology, ShandongUniversity of Science and Technology, andBeijing University of Chemical Technology.These collaborations are established eitherthrough direct institutional partnerships or viauniversity career portals to conduct specializedcampus recruitment fairs. Throughout 2024,the Company successfully organized over 10specialized recruitment fairs.

Care for Employees

The Company prioritizes the holistic well-being of its workforce, consistently implementing employee careinitiatives and dedicating efforts to cultivate a healthy and supportive workplace environment. The Companyregularly conducts health education seminars and organizes internal recreational programs to promotework-life balance, safeguard employees' physical and mental health, and enhance employee satisfaction.The Company has established a comprehensive support system for employees facing hardships, includingthe formulation of the Emergency Relief Measures for Employees in Difficulties and the implementation of atargeted relief mechanism. This system ensures prompt, precise, and effective assistance to employeesencountering life challenges, critical illnesses, or unforeseen emergencies. In 2024, the Company's manufac-turing bases carried out the work of helping employees in difficulty, focusing on helping 9 people with anamount of RMB 119,896.

Vacation

Remunerationand statutoryrights and bene-

fits

Non-statutory welfare

?Vacation: The Company provides marriage leave, maternity leave, family

planning leave, compassionate leave, family reunion leave, and all statu-tory holidays.

?Remuneration: The Company has established the Wage ImplementationPlan for Employees of Tire Company's Branch Plants, which outlines a com-prehensive remuneration structure comprising position-based pay,skill-based pay, performance incentives, overtime remuneration, andadditional allowances. The Company ensures the timely disbursement ofsalaries to all employees on a monthly basis.?Statutory rights and interests: In strict compliance with the applicable

laws, regulations, and ordinances of the Company's operational locations,the Company ensures the full and timely payment of social insurance con-tributions. For employees under labor contracts, the rate of social insur-ance contribution is 100%.

?The Company provides holiday benefits for all employees such as the

Spring Festival and Mid-Autumn Festival, birthday and induction com-memorative benefits.?The Company provides meal allowance, heatstroke prevention and labor

protection appliances.?The Company provides labor union benefits for members.?The Company provides employees with checkup services.

Employee Communication

The Company upholds the fundamental right of employees to freedom of expression by maintaining open andtransparent communication channels. In alignment with this commitment, the Company has implemented theProcedures for Freedom of Association and Collective Bargaining, established duly recognized labor unions,and executed the Enterprise "1+3" Collective Labor Agreement to safeguard employees' rights to organize, joinlabor unions, and engage in collective bargaining activities.

Employee Satisfaction Trend of Linglong Tire

Lecture on Mental HealthVisit to Hospitalized Employees

Visit to Employees Working in High

Temperature Environment

Parent-Child Activities for Employees

The Company regularly engages in employee interviewsand actively solicits feedback through various channels.The senior executives team conducts in-depth visits tothe front line and organizes employee symposiums tolisten to employees' opinions and suggestions. Based onthis input, the Company provides necessary support andassistance to address employee concerns. The Companyhas established open feedback channels for employeesby formulating the Management Procedures for HandlingEmployee Opinions, Suggestions, and Complaints toensure that all complaints are promptly acknowledgedand addressed.

Employee Symposium

76.17%

76.54%

76.00%

76.20%

76.40%

76.60%

76.80%

77.00%

202220232024

76.80%

The Company conducts regular employee satisfaction surveys to assess workforce sentiment and identifypotential risks. Based on the findings, the Company has developed and rigorously implemented targetedaction plans. In 2024, the Company successfully collected 8,026 valid questionnaires, representing approxi-mately 57% of its total workforce (excluding employees based in Europe and Thailand). Overall employeesatisfaction stood at 76.80%.

Employees' Rights and Benefits

Employees' RightsThe Company attaches great importance to the protection of employees' rights and benefits, and has formu-lated the Regulations on Attendance and Vacation Management, and Wage Implementation Plan for Employeesof Tire Company's Branch Plants, to continuously better the employee rights and benefits protection system.

Employees' Rights and Benefits Protection System of Linglong Tire

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Employee Training and DevelopmentEmployee Training

The Company continuously enhances its focus on talent development, recognizing that empowering employ-ees, improving their capabilities, and unleashing their potential are key drivers of sustainable businessgrowth. Linglong Tire has established a robust and systematic training mechanism, implementing a varietyof measures to advance the creation of a standardized talent pool.To this end, the Company has developed the Training Operation and Management Procedures. The Companyorganizes training activities through four core processes: training needs analysis, training plan development,training implementation, and training effectiveness evaluation. Tailored training programs are designed foremployees in different positions.

TraineeTraining program

Cadres and managersCadre and Manager Training and Skill Level Evaluation Program

Management Measures for Reserve Echelon

New Employee Training Competition ProgramManagement Regulations on Cultivation of New Engineering Techni-cians/ManagersManagement Measures for Training and Competency Evaluation of Mainte-nance WorkersSkills Competition Scheme for Front-line and Maintenance WorkersManagement Procedure for Standardized Training of Front-line EmployeesSkills Competition Scheme for Front-line and Maintenance WorkersProgram for Selection of Excellent Job Training Materials and ExcellentInstructors for Front-line EmployeesWork Instructions for Training on Employees of Finished Product QualityDepartmentWork Instructions for Training on Rapid Inspection Post of Quality ManagementDepartmentWork Instructions for Training on Laboratory Center of Quality ManagementDepartmentQuality inspector

Newly recruited engineer-ing technology personneland managers

Reserve echelons

Front-line employees

Maintenance workers

In 2024, the Company implemented a comprehensive training program encompassing business operations,management competencies, and quality awareness initiatives, among others. To further enhance learningopportunities, the Company launched the Cloud Academy e-learning platform. Throughout the year 2024, theCompany conducted a total of 4,940 training sessions, investing RMB 1.3 million in employee developmentand achieving a 100% training participation rate across its workforce.

[Case] Organized a specialized training program focused on enhancing the ninecore competencies of lean management

In 2024, to effectively advance the Company's lean management, a training program waslaunched for production and manufacturing cadres and managers. The program focused oncomprehensively enhancing nine core competencies, including integrated planning, data analy-sis, improvement and innovation, and effective communication. The training encompassed aholistic curriculum covering panoramic lean management theory, value stream analysis, PMC,and other systematic lean management knowledge. By integrating the identification of issuesand the initiation of improvement projects, the Company aimed to significantly elevate the ninecompetencies of the participants. A total of 120 individuals participated in this program.

[Case] Carried out the reserve echelon trainingprogram

In 2024, to enhance the comprehensive manage-ment capabilities of its reserve echelon, the Com-pany designed a structured training programtailored for the high-potential candidates selectedthat year. By consolidating systematic trainingresources, the program focused on developingcore management competencies, equippingparticipants with the necessary knowledge forfuture promotions and role requirements. A totalof 313 employees participated in this program.

Group Photo of Cadres and ManagersScene of the Training Program Curriculum

To elevate employees' professional expertise and overall competencies, the Company offers comprehensivesupport for academic advancement and professional certification to all full-time employees (i.e., thoseunder labor contracts; the Company does not employ part-time staff).

Training Scene

The Company established highly efficient partnerships with educationalinstitutions to offer programs for upgrading academic qualificationsfrom associate degrees to bachelor's degrees. Upon graduation, theCompany reimbursed the tuition fees incurred by employees. In 2024, atotal of 110 employees graduated from the programs for upgradingacademic qualifications from associate degrees to bachelor's degrees,with the Company reimbursing a total of RMB 300,750 in tuition fees.The Company invited external professional organizations to conducttraining sessions on the Six Quality Tools. As a result, 40 participantsobtained certification in the Six Quality Tools.

The Company collaborated with external professional institutions,to conduct internal auditor training for the National Military Standard,resulting in 9 employees obtaining internal auditor certification;to deliver SA8000 internal auditor training, with 60 employees success-fully earning internal auditor certifications.The Company supported employees in attending external professionaltraining programs, fully funded by the Company, to acquire relevantcertifications:

1 employee obtained IATF16949 certification;2 employees achieved VDA6.3 Process Auditor certification;1 employee received VDA6.5 Internal Auditor certification; and1 employee attained PSCR certification.

Linglong Tire's Main Achievements in Supporting Employees to UpgradeTheir Education Qualifications and Obtain Qualification Certifications in 2024

Training Program for Different Types of Employees of Linglong Tire in 2024

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

The Company regularly monitors key indicators and targets related to employee management and has established arobust tracking mechanism to ensure that these indicators and targets are effectively implemented. In 2024, the Com-pany did not experience significant labor disputes.

Indicators and

Targets

Employee Performance Assessment and DevelopmentThe Company has established the Title Promotion Management System and the Cadre and Manager Training and Skill Level Evaluation Program, adopting adual-track development model for management and engineering technology. This mode aims to provide employees with diverse and clear career progres-sion pathways. The dual-track career progression pathway of Linglong Tire employees is detailed in Linglong Tire 2023 Sustainability Report.The Company has established a comprehensive performance management framework centered on mutual growth and development between employeesand the organization. This unified framework ensures transparent and equitable performance assessments, with results directly linked to bonus allocationand professional title advancement. The Performance Management System of the Company, supported by robust processes, systematic approaches, anddigital platforms, undergoes continuous improvement through closed-loop optimization. This scientifically-grounded, fair and pragmatic approach fostersemployee engagement, enhances workforce motivation, and maximizes organizational human capital potential.Guided by principles of objectivity and fairness, the Company conducts multi-faceted performance assessments across several dimensions: job perfor-mance, professional competencies and personal qualities, learning agility and skill development, professional attitude, role-specific responsibilities fulfill-ment, and team collaboration. In 2024, the participation rate of employees subject to regular performance and career development appraisals reached100% with a total of 222 employees promoted.

Aspects Indicator Target Progress

Proportion of newly recruited female employees >15% 16.08%

Employee turnover rate 1.75% 1.41%

Employee satisfaction Improved over the previous year Completed

Employee training participation rate 100% 100%

Employee Management Targets and Progress of Linglong Tire in 2024

Workplace diversityand inclusion

Employee training and

development

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Community Co-construction

and Public Welfare Charity

Community Co-construction and Public Welfare Charity

Scene of the Donation and Awarding Ceremony

The Company Was Honored as a PublicWelfare Partner of "Jiefang Love Pilot

Program - Caring for Truck Drivers"

[Case] Made donations to the "Jiefang Love Pilot Pro-gram: Caring for Truck Drivers"On January 11, 2024, the donation and awarding ceremony for thepublic welfare partners of "Jiefang Love Pilot Program · Caring forTruck Drivers" was held. Linglong Tire, as a core supplier of FAWJiefang, was among the first batch of 10 outstanding suppliersparticipating in the "Jiefang Love Pilot" public welfare program. TheCompany donated RMB 200,000 to the program. This initiative notonly deepened the emotional bond between Linglong Tire and thetruck driver community but also provided substantial support to the"Jiefang Love Pilot" program, bringing tangible care and assistanceto truck drivers.

[Case] Conducted the "Teens on the Wolf's Back" Youth Football Training PublicWelfare Program

In August 2024, Linglong Tire, in partnership with VfL Wolfsburg, successfully hosted the 2024"Teens on the Wolf's Back" Football Training Program on the Qingdao West Coast. This eventattracted over 50 aspiring young participants from across China, nurturing promising talents forthe future of Chinese football but also instilled in these young participants a spirit of bravery andpositivity. It encouraged them to pursue their dreams with confidence and determination on thefootball field, contributing to their healthy development and growth.

"Teens on the Wolf's Back" Football Training Program Scene

[Case] Continuously dedicated its efforts to implementing the "Caring Truckers"programIn 2024, Linglong Tire further expanded its "Caring Truckers" program across its offline stores. TheCompany equipped these stores with essential amenities such as washing machines, microwaveovens, and a variety of food supplies. The Company aimed to offer complimentary laundry servicesand meal provisions to truckers during their journeys. The Company provided nearly RMB 200,000of public welfare funds to truckers whose families faced financial difficulties due to seriousillnesses, accidental deaths, or other catastrophic events.

Public Welfare Materials of Atlas Truckers Home

[Case] Organized the public welfare study program for children

In February 2024, Linglong Tire launched a public welfare program, the "Northeast Tour of Children"Winter Educational Tour Program. This innovative philanthropic endeavor was designed to providechildren with transformative educational experiences through immersive learning opportunities in theunique winter landscape of Northeast China. During this program, children not only immersed them-selves in the wonders of the snow and ice world but also enriched their understanding and appreciationof traditional Chinese culture and regional characteristics throughout the five-day educational tour. Thisexperience has made a valuable contribution to the children's holistic development and growth.

Group Photo of "Northeast Tour of Children" Public Welfare Study Program

[Case] Honored with the Truck Driver PublicWelfare AwardOn September 25, 2024, the launch ceremony of the"Warm Journey - Career Development and ProtectionAction for Truck Drivers and Taxi Drivers" for 2024was held in Beijing. At the event, the list of the "PublicWelfare Program of the Year" and "Outstanding PublicWelfare Partner" of the 2023 Warm Journey Actionwas officially announced. Linglong Tire, withoutstanding contributions in the field of public wel-fare and deep care for the community of truck drivers,was honored to receive both of these awards.

Awards Ceremony

Linglong Tire always prioritizes communication with local communities of the operating site, actively fulfills its social responsibilities and gives back to the community by creating jobs, public welfare donations, infrastructure support and voluntary services.The Company adheres to the Charity Law of the People's Republic of China, the Law of the People's Republic of China on Donations for Public Welfare, and other pertinent laws and regulations, as well as the administrative regulations of the regions where it operates. Linglong Tire has formulated policies such as the Management Measures forExternal Donations and established a Social Responsibility Working Group tasked with the unified oversight of the Company's community engagement, philanthropic donations, and volunteer services. In 2024, the Company initiated or organized numerous public welfare and volunteer activities, with a cumulative investment of RMB 558,300.

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

The Company has established the Linglong Public Welfare Development Fund in the Republic of Serbia, which is dedicated to sup-porting various public welfare initiatives undertaken by LLIE in the region. LLIE regularly organizes Family Open Days, invitingemployees' family members to visit the plant. This initiative not only allows them to experience the corporate culture firsthand butalso strengthens the emotional bonds between employees and their families. LLIE enriches the local community's understanding ofLinglong, thereby bolstering the Company's social influence.

Conducting Family Open DayActivities for Employees

Sponsoring Zrenjanin MarathonDonating Office Equipment to A Local Kindergarten

[Case] The manufacturing bases of Linglong Tire were committed to public welfareDuring the 2024 Spring Festival, Dezhou Linglong conducted a corporate social engagement initiative at the Wucheng County Fire and RescueBrigade. The Company's delegation extended festive greetings and conveyed profound respect to the frontline emergency responders. Throughthe presentation of care packages and practical support, the Company demonstrated its deep commitment to supporting firefighting heroes,thereby exemplifying corporate citizenship in fostering social harmony and advancing public welfare initiatives.

Dezhou Linglong extended festival greetings to the firefighterLLIT actively participates in a wide range of public welfare activities through financial sponsorship, tire donation, and the provision of living mate-rials. These activities are organized by various entities, including the Industrial Estate Authority of Thailand, district and town governments,village committees, and elementary schools. In 2024, LLIT participated in over 10 public welfare activities, investing approximately 150,000 baht.LLIT has consistently maintained close relationships with local governments and communities.

Donation to Flood-stricken Areas

Donation of School Supplies and

Snacks to Elementary Schools

Donation of Tires to the Government

Participating in Local Tree Planting Activities

Donation of School Supplies to Children's Day activities

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Corporate Governance

Business Ethics

Compliant Operation

Governance

Robust Linglong,

Consolidating Operation Foundation

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Corporate

Governance

Strategy

According to relevant laws and regulations, the Company identifies, assesses, and manages risks associated withcorporate governance, continually enhancing the standards of corporate governance and further formalizing the Com-pany's operations.

Corporate Governance

Linglong Tire Corporate Governance Structure

Major Risks of Corporate Governance Identified by Linglong Tire and Response Strategies

Risk category Period Financial impact Response strategies

?The Company enforces the principle of "truthful-

ness, completeness, accuracy, timeliness andfairness" in information disclosure, respectssmall and medium-sized investors, treats allshareholders equally, and continuously booststhe transparency of the Company's informationand communication.

?Pursuant to the Company Law and other pertinent

laws, regulations and the Articles of Association,the Company endeavors to effectively guaranteethe effectiveness, professionalism, diversity andindependence of the Board of Directors.

Decrease in operating incomeIncrease in compliance costs

Increase in compliance costsRisks related to the independence,diversity and professionalism ofthe Board of Directors

Risks of damage to inves-tors' rights and interests

Risks of informationdisclosure violation

Medium andlong term

Remuneration and Appraisal CommitteeNomination CommitteeStrategic Decision-making CommitteeAudit CommitteeSustainable Development CommitteeCompliance Management Committee

Board of Directors

President

General Meeting of Shareholders

Governance

Linglong Tire strictly adheres to the Company Law of the People's Republic of China (hereinafter referred to as the Com-pany Law), the Securities Law of the People's Republic of China, the Code of Corporate Governance for Listed Companies,and other relevant laws, regulations and requirements. The Company continuously refines its corporate governancestructure, building and optimizing the governance framework consisting of the General Meeting of Shareholders, Boardof Directors, Board of Supervisors, and Senior Executives.

?This framework is designed to support the sustainable,standardized, and healthy development of the Company.In 2024, the Company revised 11 systems, including the Rules of Procedures of the Board of Directors and the Articles ofAssociation. The Company newly formulated the Working System for Specialized Meetings of Independent Directors andthe Market Value Management System. These endeavors were designed to further the corporate governance system.

Note? In accordance with the Company Law of the People's Republic of China (2023 Revision) effective from July 1, 2024, and the Guidelines for the Articles of Association of Listed Compa-

nies (2025) effective from March 28, 2025, and other relevant laws and regulations, and considering the Company's actual situation, the Company will abolish the Board of Supervi-sors upon approval by the Annual General Meeting of Shareholders in 2024. The Audit Committee of the Board of Directors will exercise the functions and powers of the Board ofSupervisors.

?The General Meeting of Shareholders is the supreme authority of the Company, responsible for making decisions on

the Company's business policies and investment plans in accordance with the law.?In 2024, the Company held a total of 4 General Meetings of Shareholders and deliberated 24 proposals.

?The Board of Directors is responsible for the General Meeting of Shareholders. The term of each director is no more

than three years. A director may serve consecutive terms upon expiration of his/her term, and the consecutive term

of an independent director is no more than six years.?In 2024, the Company held 8 meetings of the Board of Directors, deliberated 60 proposals, and held 12 meetings of

the various special committees. The attendance rate of directors at these meetings is 100%.?The Board of Directors comprises members with diverse professional backgrounds, including accounting, law, and

the rubber industry, and extensive experience in managing large enterprises. This diversity enhances the operational

efficiency of the Board of Directors and enables directors to make decisions based on multiple perspectives.?Adjustments were made in 2024 to the membership of the committees under the Board of Directors. Currently, both

the Remuneration and Appraisal Committee and the Audit Committee are comprised solely of independent directors.?In 2024, the Company's Board of Directors consisted of 9 members, including 3 independent directors, accounting for

33.33% of the total, and 2 female directors, accounting for 22.22% of the total.

?The Board of Supervisors exercises the right of supervision to protect the rights and interests of shareholders and

investors, the interests of the Company, and the legitimate rights and interests of employees from infringement, and

is responsible for the General Meeting of Shareholders.?In 2024, the Board of Supervisors consisted of 3 members, including 2 shareholder representatives and 1 employee

representative. The Company held 7 meetings of the Board of Supervisors and deliberated upon a total of 29 proposals.

?The management performs their duties in accordance with laws and regulations and the Company's internal regula-

tions, strictly implements the resolutions of the General Meeting of Shareholders and the Board of Directors, and

promotes the sustainable and stable operation of the Company.?The Company boasted 9 senior executives, including 1 female executive, accounting for 11% of the total.

Board of Directors

Board of Supervisors

Management

General Meeting ofShareholders

Governance Framework and Overall Operation of Linglong Tire in 2024

The Company is committed to ensuring the diversity, independence, and professionalism of the Board of Directors. Linglong Tire regularly reviews and disclos-es information regarding members of the Board of Directors to ensure the effectiveness of implementation and to continuously boost corporate governance.

IndependenceIndependent

frommanagement

Industryexperience

Financialmanagement

Riskmanagement

Wang Feng Male 53

Wang Lin Male 50

Liu Huirong Female 62

Wen Decheng Male 59

Pan Ailing Female 60

Zhang Qi Male 52

Sun Songtao Male 46

Feng Baochun Male 56

Li Wei Male 53

√

√ √ √

√ √

√ √ √

Professional competence

The Company rigorously adheres to all applicable laws, regulations, and exchange requirements to enhance its corpo-rate governance framework, ensuring the proper functioning of the General Meeting of Shareholders, Board of Direc-tors, and Board of Supervisors. In 2024, all convening procedures, deliberation processes, voting mechanisms, andresolution contents of the General Meeting of Shareholders, Board of Directors, and Board of Supervisors were con-ducted in full compliance with legal requirements and were deemed valid. The Board of Directors or senior executiveshave not exercised their authority in contravention of the Company Law or other pertinent regulations.

ChairmanChairman of Strategic Decision-making CommitteeChairman of Sustainable Development CommitteeChairman of Compliance Management CommitteeVice ChairmanMember of Strategic Decision-making CommitteeIndependent directorMember of Audit CommitteeMember of Remuneration and Appraisal CommitteeChairman of Nomination CommitteeMember of Strategic Decision-making CommitteeIndependent directorMember of Audit CommitteeChairman of Remuneration and Appraisal CommitteeMember of Nomination CommitteeIndependent directorChairman of Audit CommitteeMember of Remuneration and Appraisal CommitteeMember of Strategic Decision-making CommitteeDirectorMember of Nomination CommitteeDirectorMember of Strategic Decision-making CommitteeMember of Sustainable Development CommitteeMember of Compliance Management CommitteeDirectorMember of Sustainable Development CommitteeDirectorMember of Sustainable Development CommitteeMember of Compliance Management Committee

Impacts, Risks,and OpportunitiesManagementIndependent

from otherstakeholdersDirectorPositionGenderAge

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

The Company has formulated and continuously improves the remuneration system and plan for directors, supervisors, and senior executives. The remuner-ation plan for directors shall be submitted to the shareholders' meeting for deliberation and approval before implementation. The remuneration plan forsenior management shall be submitted to the Board of Directors for deliberation and approval before implementation. Independent directors and supervi-sors adopt self-evaluation and mutual evaluation to evaluate their performance of duties.The Company has formulated the Management System for Related Party Transactions, the Management System for Preventing Controlling Shareholders andRelated Parties from Occupying the Company's Funds and other systems. The Company standardizes related party transactions and reduces unnecessaryrelated party transactions, and ensures the fairness and impartiality of related party transaction decision-making to all shareholders. To ensure the compli-ance of the Company's related party transactions, the Company has implemented robust measures to guarantee that all such transactions fall within thepurview of review and approval by the General Meeting of Shareholders, Board of Directors, and Board of Supervisors.Information Disclosure ManagementThe Company strictly abides by the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Code of Corpo-rate Governance for Listed Companies, the Rules Governing the Listing of Stocks on Shanghai Stock Exchange, and other laws, regulations, rules and norma-tive documents. Based on these, the Company has formulated the Management System for Information Disclosure, Management System for Investor Rela-tions, Accountability System of Major Errors in Annual Reports and other systems, ensuring that the information disclosed by the Company is truthful, accu-rate and complete and all shareholders have equal access to the information.The Company discloses information through the website of the Company, the website of the Shanghai Stock Exchange and the relevant statutory mediadesignated by the China Securities Regulatory Commission by combining mandatory disclosure and voluntary disclosure. The Company seeks to continu-ously enhance the transparency of the Company's information disclosure.In 2024, the Company disclosed a total of 93 periodic reports and temporary announcements and was not punished by regulatory authorities for informa-tion disclosure violations. There were no selective information disclosures or information disclosure violations within the year.

The Company has established management indicators and targets related to corporate governance, continuously mon-itored the progress of objective implementation, and improved the effectiveness of the Board of Directors and the qual-ity of information disclosure. These measures have further strengthened the Company's corporate governance capa-bilities. For more detailed information on corporate governance, please refer to the "Corporate Governance" section inthe 2024 Annual Report of Shandong Linglong Tyre Co., Ltd.Indicators andTargets

Investor Relations ManagementThe Company has proactively implemented the "Enhancing Quality, Boosting Effi-ciency, and Prioritizing Returns" initiative for Shanghai-listed companies, adher-ing to the "investor-centric" development philosophy. In its commitment to deliv-ering value to investors, the Company has established the Investor Relations Man-agement System, the Management System for Separate Counting of Votes forMinority Investors and the Market Value Management System. These systems,developed in compliance with regulatory requirements and tailored to the specificoperational context, provide a structured approach to investor relations manage-ment. They focus on three core dimensions, including value creation, value com-munication, and value preservation, systematically guiding investor relationsactivities to enhance the Company's capital market valuation.The Company actively constructs open, fair, transparent, and multi-dimensionalcommunication channels with investors. Linglong Tire engages with investorsthrough various means, including the SSE Roadshow Center, the SSE E-Interactiveplatform, investor email, and dedicated investor hotlines. The Company alsopromptly relays investors' concerns and suggestions to the management, therebyestablishing a regular and effective communication mechanism.

Corporate Governance Targets and Progress of Linglong Tire in 2024

Attendance rate of members of Board of Directors 100% 100%Evaluation grade of information disclosure Grade A Grade A

Indicator Target Progress

In 2024, the Company held 4 General Meetings of Share-holders, 3 performance briefings through online interac-tion and on-site communication, and responded to 226investor inquiries through the E-Interaction platform. Out-side the reporting window period, the Company received97 investor surveys in total.

Investor communication meeting

The Company actively aligns itself with the laws of the capital market, formulates reasonable profit distribution policies, methods, and dividend plans, andmakes positive returns to shareholders. In 2024, the Company increased the frequency of cash dividend payments to enhance investors' sense of gain. In 2024,the Company paid a cash dividend of RMB 2.86 (including tax) per 10 shares to all shareholders, amounting to a total of RMB 531 million (including tax).

In 2024, the Company was awarded the highest rating - Grade A in the Shanghai Stock Exchange's Annual Information Disclosure Evaluation, marking asignificant achievement as the sole enterprise in the Shanghai-listed tire sector to have maintained this prestigious rating for five consecutive years.

Full namePosition

Basicsalary

Allowancesand otherremuneration

Sustainableperformance

AnnualbonusPostwageFixed salaryVariable compensation

Total annualremuneration

24.00 48.00 8.47

31.36

120.00

231.83

18.00 16.80 7.51 25.14 30.00 97.45

21.60 120.00 27.30 70.00 238.90

18.00 12.00 7.51 22.13 45.00 104.64

18.00 33.60 16.06 27.05 13.00 107.72

18.00 9.60 19.12 20.00 66.72

12.00 6.40 5.03 18.05 30.00 71.48

12.00 6.40 4.94 15.71 30.00 69.05

18.00 9.60 7.26 17.89 20.00 72.74

ChairmanPresidentDirectorSenior ExecutiveSecretary of theBoard of DirectorsChief FinancialOfficer (CFO)DirectorSenior ExecutiveSenior ExecutiveDirectorSenior ExecutiveSenior ExecutiveSenior ExecutiveSenior Executive

Wang Feng

Sun Songtao

Lv XiaoyanFeng BaochunLi JianxingLi WeiWei ShengGuo KuntaoXu Yongchao

Executives’ Compensation

(Unit: RMB 10,000)

Note? The calculations are based on the actual tenure and working time of the Company's executive.

Business

Ethics

Business Ethics

Governance

Linglong Tire rigorously adheres to pertinent laws and regulations including the Law of the People's Republic of ChinaAgainst Unfair Competition and the Interim Provisions on the Prohibition of Commercial Bribery, while also referencinginternational standards such as the United Nations Convention Against Corruption. The Company has formulated rele-vant systems pertaining to business ethics, issued the Business Ethics Management Policy Statement, and establisheda top-down management structure for business ethics. Linglong Tire actively advances its business ethics manage-ment system, upholds the integrity of its workforce, and cultivates a healthy and positive corporate culture.

Linglong Tire Business Ethics Governance Framework

Supervision level

Board of Directors and subsidiary Sus-tainable Development Committee andCompliance Management Committee

Set business ethics management objectives, supervise work related tobusiness ethics, and be responsible for the effectiveness of businessethics management.

Management level

Execution level

Governance and Economy Committee

Lead the establishment of business ethics system and supervise theimplementation of business ethics objectives.

Legal Affairs Division

Improve the internal control process of business ethics, take the lead inorganizing internal audits of business ethics, and conduct regular businessethics training for employees and management.

Linglong Tire Business Ethics Management System

Anti-commercial bribery and anti-corruption Anti-corruption and Anti-bribery Control Procedures, Integrity Management Control Procedures, etc.Anti-unfair competition Anti-unfair Competition Control Procedures, etc.Supervision and reporting Supervision and Reporting Management System, etc.

Aspects Name

Business Ethics Related Risks Identified by Linglong Tire and Response Strategies

?Continuously strengthen the review of anti-commer-cial bribery.?Open up reporting channels and improve the whis-tleblower protection mechanism.

?Incorporate anti-money laundering requirements into

the compliance system and improve the investigationmechanism before establishing business relation-ships.

?Identify 7 types of unfair competition manifestations,like market confusion and infringement of commercialsecrets, and establish a closed-loop control mecha-nism of prevention beforehand, control during theprocess and remediation afterward.

Decrease in operatingincome and increase incompliance costs

Risk category Impact period Financial impact Response strategies

Risk of commercial bribery

Unfair competition risk

Money laundering risk

Strategy

The Company is dedicated to operating its business in strict compliance with all applicable laws, regulations, and thehighest ethical standards, expressly prohibiting any activities that may compromise its integrity or tarnish its reputa-tion. The Company has established a comprehensive framework to proactively identify, assess, and mitigate risksassociated with business ethics. This includes implementing robust controls to effectively manage risks pertaining tocommercial bribery, unfair competition, and money laundering.

Short, medium,and long term

Medium andlong term

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Linglong Tire Business Ethics Management Process

Violation detection

The Company monitors risks related to business ethics through routine inspections, internal audits, and complaintsand reports. Upon detection of any violations, a specialized working group, which has been carefully selected andprofessionally trained by the Company, is designated to handle the matter.

Investigation andevaluation of

violations

Measures

Upon identification of any violations, the working group will initiate a comprehensive investigation process. This process entailsconducting in-depth interviews with relevant personnel, collecting and analyzing evidentiary documents and data, and seekingexternal legal counsel when warranted. To ensure investigative efficiency, the working group will establish appropriate time-lines based on the complexity of each case. Following the conclusion of the investigation, the responsible department will com-pile a detailed investigative report and propose actionable recommendations.Based on the investigation findings, the Company will implement appropriate disciplinary actions, ranging from formalwarnings and temporary suspensions to pursuing criminal or civil remedies when warranted. Concurrently, the Compa-ny will enhance its management systems to mitigate the risk of similar incidents occurring in the future.

Reportingchannelsand whis-tleblowerprotection

Anti-unfair competition

Anti-money laundering

?The Company conducted a systematic anti-corruption risk assessment across all business departments.?The Company identified a total of 16 key positions for anti-corruption risks across 12 categories, includingprocurement and bidding, finance, human resources, and management.?The Company conducted quarterly special audits for high-risk positions such as bidding, procurement, sales,and fund transactions. Linglong Tire carried out semi-annual or annual special audits for medium- and low-riskpositions, including asset management and equipment management. In 2024, the Company carried out 60 spe-cial audits with a total of 11 audits completed.?The Company adopted a commitment system aimed at preventing commercial bribery, considering the adher-

ence to the Integrity and Self-Discipline Commitment Letter by employees in critical roles as a pivotal aspect ofthe evaluation and assessment, as well as a crucial criterion for appointments and removals.?The Company required employees in key links, areas, and positions to sign the Integrity and Self-discipline Com-mitment Letter and encouraged other employees to do so. In 2024, the rate of employees signed the Integrity andSelf-discipline Commitment Letter was 100%.?The Company required all customers, suppliers, and contractors that were doing business with the Company to sign theAnti-bribery Agreement. In 2024, the rate of the business partners who signed the Anti-bribery Agreement was 100%.?The Company conducted regular business ethics training. In 2024, the participation rate of business ethics training

for the Company's directors was 100%, and the participation rate of business ethics training for employees was 100%.

Linglong Tire Business Ethics Management Measures and Achievements in 2024Aspects Specific measures and effectiveness

Aspects Specific measures and effectiveness

Anti-commer-cial briberyand anti-cor-ruption review

Anti-commer-cial bribery andanti-corruption

Cleanculturepromotion

The Company has implemented a comprehensive business ethics management framework, which systematically iden-tifies, assesses, and monitors risks associated with business ethics. This framework encompasses robust measuresin key areas including anti-commercial bribery and anti-corruption, anti-unfair competition, and anti-money laundering.These efforts are designed to ensure full compliance with ethical standards across all operational processes.Impacts, Risks,and OpportunitiesManagement

Business Ethics Management Targets and Progress of Linglong Tire in 2024

Signing rate of the Anti-bribery Agreement with business partners 100% 100%Coverage of directors' business ethics training 100% 100%Participation rate of employees' business ethics training 100% 100%

Indicator Target Progress

The Company has established well-defined objectives for business ethics management, implementing a robust contin-uous monitoring framework that integrates ethical principles into daily operations. This framework aims to elevate theethical standards of all employees and foster a corporate culture characterized by integrity, transparency, and ethicalbusiness practices.In 2024, the Company maintained a clean compliance record, with zero confirmed incidents of corporate corruption,bribery, extortion, fraud, or money laundering activities.Indicators andTargets

?The Company conducted 12 clean practice examinations for key position holders, with 459 participants.?The Company encouraged employees and cooperation enterprises to report and expose corruption through APP,mailbox, email, telephone, SMS and other reporting channels.?In strict compliance with the Report Management Policy Statement, the Company mandated absolute confidentialitythroughout all stages of the whistleblowing process, including case intake and investigation. The Company imple-mented robust whistleblowing management and whistleblower protection mechanisms, with a zero-tolerance policytowards any form of retaliatory actions against whistleblowers.?The Company developed a closed-loop management system for anti-unfair competition compliance risks, encom-passing proactive prevention measures, real-time monitoring controls, and continuous improvement initiatives. Thesystem was intended to ensure full implementation of compliance requirements and effective mitigation of regulato-ry risks.?In 2024, there were no incidents related to unfair competition of the Company.?The Company organized training on advertising law to prevent the risk of false publicity.?Before establishing external business relationships, the Company conducted thorough investigations and assess-ments of potential trading partners, opting to establish ties solely with customers, intermediaries, and business part-ners who possess a strong reputation and conduct their business activities legally.?The Company encouraged employees to fulfill their reporting obligations whenever they suspected money launder-ing activities on the part of customers, intermediaries, or business partners.?The Company consistently integrated anti-money laundering requirements into its compliance framework, explicitlyprohibiting employees from engaging in or assisting any individual in illegal money laundering activities.

Compliant

Operation

With the overarching objective of achieving "zero violations", the Company has established a comprehensive set ofcompliance monitoring indicators and conducts regular reviews to ensure adherence. In 2024, the Company was notpunished or warned by the regulatory authorities for violating laws and regulations related to the Company's opera-tions, covering product quality, customer service, intellectual property protection, environmental protection, andemployee employment.Indicators andTargets

Compliant Operation

Key Compliance Management Measures of Linglong Tire in 2024

[Case] Conducted trade compliance trainingIn October 2024, the Company conducted specialized training on tradecompliance. Professional lawyers were invited to provide comprehensiveand in-depth explanations to all cadres and managers of the Company'score departments, including sales and purchasing, as well as finance. Thetraining aimed to enhance the compliance awareness and capabilities ofthe Company's management in the complex environment of internationaltrade. A total of 549 people participated in this training, which included acomprehensive interpretation of the U.S. and EU sanction regimes, caseanalysis, and sharing of common questions and response strategies.

Participation rate of directors, supervisors and executives in compliance training 100% 100%

Scene of Trade Compliance Training

Compliant Operation Target and Progress of Linglong Tire in 2024

Indicator Target Progress

The Company established asound compliance riskprevention and controlsystem and set out riskgrading criteria. The Compa-ny analyzed and sorted outthe degree of impact ofpossible risks and thedegree of impact of theirconsequences.

The Company implementedphased risk managementplans encompassing,short-term emerging riskmanagement plans, medi-um-to-long-term structuralrisk management plans, andlong-term risk culturepromotion plans.

The Company established acompliance informationcolumn to regularly publishcompliance policy interpre-tation, industry compliancecase analysis and internalcompliance requirements ofthe Company.

The Legal Affairs Division ofthe Company providedtimely and accurate answersand guidance to compliancequeries encountered byvarious departments in thecourse of business opera-tions, to effectively preventcompliance risks.

The Company strengthenedcompliance training andorganized the directors, supervi-sors, executives, staff of theBoard Office and staff of otherrelevant departments to partici-pate in training on laws andregulations of the securitiesmarket and professionalknowledge, with a total of 12compliance training sessionsconducted in 2024.

Governance

By upholding the principle of honest and law-abiding operation, Linglong Tire strives to build a corporate complianceculture of "dare not violate, cannot violate, unwilling to violate". In accordance with the Company Law of the People'sRepublic of China, the Evaluation Guideline for Enterprise Internal Control, the Audit Guideline for Enterprise Internal Con-trol, the Code of Corporate Governance for Listed Companies, and other laws, regulations, and standards, the Companyhas formulated the Compliance Management Measures, Code of Conduct for Compliance, and other system documents,and established a complete compliance internal control system. In 2024, the Company updated the Trade ComplianceManagement Regulations to continuously implement compliance management.The Company has established a Compliance Management Committee under the authority of the Board of Directors,supported by the formally adopted Working Rules of the Compliance Management Committee of the Board of Directors.This committee provides strategic oversight and coordinates management of the Company's compliance affairsacross four key pillars, including governance framework, policy system, operational system, and support systems.Through this comprehensive approach, the Company continues to enhance its compliance management mechanisms,clearly define compliance responsibilities, foster a culture of compliance, and ensure full adherence to legal and regu-latory requirements in all business operations.

Strategy

The Company has implemented a proactive compliance risk identification process across all business operations. Tothis end, the Company has developed the Compliance Management System Roadmap 2023-2025, which establishesclear governance principles and prioritizes key compliance focus areas. The Company seeks to drive the comprehen-sive development and implementation of an enterprise-wide compliance management system.

The Company has established a robust compliance management framework, systematically identifying and monitor-ing risks pertaining to liability and reputation, and proactively implementing measures to address them.In 2024, the Company enhanced the compliance management framework for risk identification across three criticaldimensions, which are business classification, regulatory requirements, and potential compliance risks. The Companydeveloped a detailed compliance risk inventory, performed thorough audits of operational compliance, and conductedroot cause analysis for identified issues. Through coordinated remediation efforts and continuous process improve-ments, the Company aimed to optimize compliance management efficiency, establishing sustainable and standardizedcompliance practices across all business operations. The management measures for additional sustainability-relatedcompliance risks are outlined in the "Impacts, Risks, and Opportunities Management" section of various issues in thisreport.

Impacts, Risks,and OpportunitiesManagement

ESG Data Sheet and Notes

Indicator Unit 2022 2023 2024

Net profit RMB 10,000 29,178.58 139,060.71175,203.54Total taxes RMB 10,000 21,013.13 60,787.60 74,509.96Total number of shares issued by the Company Share 1,476,731,513 1,473,522,713 1,463,502,683Social contribution per share

? RMB 1.67 2.92 3.49Note? [Calculation method] In 2022 and 2023, Social contribution per share = (Net profit + taxes generated for the country during the year + salaries and benefits paid to employees

+interests on borrowings paid to banks and other creditors + outbound donations and other value created for other stakeholders - other social costs caused by environmentalpollution, etc.) / Total number of shares issued by the Company. In 2024, Social contribution per share =Basic earnings per share + (taxes generated for the country during theyear + salaries and benefits paid to employees + interests on borrowings paid to banks and other creditors + outbound donations and other value created for other stakeholders-other social costs caused by environmental pollution, etc.) / Total number of shares issued by the Company.

ESG Data Sheet and Notes

EconomicEconomic Performance

Environmental

Environmental Management System Performance

Greenhouse Gas Emission Performance

Water Utilization Performance

Note? [Statistical caliber] The standard of data statistics in 2024 covered Zhaoyuan Base, Dezhou Base, Hubei Base, Guangxi Base, Thai base, Jilin Base, and European Base, the standard

of data statistics in 2023 covered Zhaoyuan Base, Dezhou Base, Hubei Base, Guangxi Base, Thai base, and Jilin Base, and the standard of data statistics in 2022 covered ZhaoyuanBase, Dezhou Base, Hubei Base, Guangxi Base, and Thai base.Note? Scope 1 GHG emissions include direct GHG emissions from the Company's consumption of natural gas, gasoline for business vehicles, raw coal, and diesel fuel from mobile sourc-

es. The parameters of Scope 1 GHG emission factors are from the Accounting Method and Reporting Guidelines of Corporate GHG Emissions Power Generation Facilities, and theChina Energy Statistical Yearbook.Note? Scope 2 GHG emissions include indirect GHG emissions from purchased electricity and purchased steam (the Company calculates GHG emissions from purchased electricity

according to a location-based approach). The calculation methods and coefficients for GHG emissions in the Chinese mainland in 2024 were derived from the Announcement onthe Release of CO2 Emission Factors for Electricity in 2022 issued by the Ministry of Ecology and Environment of China and the National Bureau of Statistics in 2024, and the Guide-lines on Accounting Methods and Reporting for GHG Emissions of Enterprises in Industry and Other Sectors (Trial Implementation) (2015) of the National Development and ReformCommission of China. For 2024, the GHG emission factor was 0.5366 t CO2e/MWh for purchased electricity in the Chinese mainland and 0.11 t CO2e/GJ for purchased steam inthe Chinese mainland. The GHG emission factor was 0.42050 t CO2e/MWh for purchased electricity in Thailand, and 0.24038 t CO2e/GJ for purchased steam in Thailand. As theRepublic of Serbia had not published the GHG emission factor for purchased electricity by the end of the reporting period, the factor for purchased electricity in Thailand wasemployed for estimation. For 2023, the GHG emission factor for purchased electricity in the Chinese mainland was 0.5703 t CO2e/MWh, while the factor for purchased steam in theChinese mainland remained at 0.11 t CO2e/GJ. The GHG emission factor was 0.407 t CO2e/MWh for purchased electricity in Thailand, and 0.11 t CO2e/GJ for purchased steam inThailand. For 2022, the GHG emission factor for purchased electricity in the Chinese mainland was 0.581 t CO2e/MWh, while the factor for purchased steam in the Chinese main-land remained at 0.11 t CO2e/GJ. The GHG emission factor was 1.246 t CO2e/MWh for purchased electricity in Thailand, and 0.11 t CO2e/GJ for purchased steam in Thailand.

Total emissions of greenhouse gas (GHG) (Scope 1 and Scope 2)

Scope 1 GHG emissions

Scope 2 GHG emissions

GHG emission per unit of revenue

ktCO2e 1,208 1,102 1,169ktCO2e 116 179 201ktCO2e 1,091 923 968tCO2e/RMB 10,000 0.71 0.55 0.53

Note? [Statistical caliber] The data for 2024 covered Zhaoyuan Base, Dezhou Base, Hubei Base, Guangxi Base, Thai Base, Jilin Base and European Base. The data for 2023 covered Zhaoy-

uan Base, Dezhou Base, Hubei Base, Guangxi Base, Thai Base and Jilin Base. The data for 2022 covered Zhaoyuan Base, Dezhou Base, Hubei Base, Guangxi Base, and Thai Base.Note? Water consumption refers to the Company's water intake, including municipal water intake in production operations and rainwater directly collected and used at the Thai Base.Note? [Calculation method] Water consumption density = Total water consumption / Operating income.Note? In 2024, the data of the European base was added. Meanwhile, the capacity of the Jilin base increased. Therefore, the total water consumption and municipal water supply data in

2024 increased compared with 2023.

m? 1,402,346 2,040,948 2,685,300

m? 176,901 176,284 237,067m? 1,225,445 1,864,664 2,448,233

m?/RMB 10,000 0.73 1.01 1.22

Total water consumption (by source of water intake)

Rainwater collected and stored directly by the enterpriseMunicipal water supplyWater consumption density

Note? [Calculation method] Proportion of environmental protection investment to operating income = Annual environmental protection investment expenditure / Operating income * 100.

Annual environmental protection investment expenditureProportion of environmental protection investment to operating income

Number of employees participating in environmental trainingEnvironmental protection training hours per capitaNumber of cases in which penalties are imposed due to violations of envi-ronmental protection laws and regulationsAmount of major administrative penalties imposed by ecological and envi-ronmental and other relevant authorities due to environmental incidentsduring the reporting period

RMB 10,000 4,805.53 4,913.78 8,490.42% 0.28 0.24 0.38Person(s) 18,534 19,347 17,783Hour 1 1 1Case(s) 0 0 0

RMB 10,000 —— —— 0

Indicator Unit 2022 2023 2024

Indicator Unit 2022 2023 2024Indicator Unit 2022 2023 2024

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Comprehensive energy consumption

Comprehensive energy consumption intensity

?Direct energy consumption

?Indirect energy consumption

Clean energy consumption

? Raw coal consumption Mobile source diesel fuel consumption Natural gas consumption Gasoline consumption Purchased steam consumption Total electricity consumption PV power generation

Tons of standard coal —— —— 319,922.50Tons of standard coal/RMB 10,000 —— —— 0.15Tons of standard coal —— —— 83,476.94Tons of standard coal —— —— 236,445.56Tons of standard coal —— —— 11,276.49Ton —— —— 37,097.44Ton —— —— 72.95m? —— —— 42,708,426.68Liter —— —— 66,265.05GJ 2,465,200.38 2,746,251.39 3,334,524.25MWh 879,699.61 1,089,061.77 997,427.33MWh 30,745.78 62,552.50 91,687.70

Total industrial wastewater discharge

?Density of industrial wastewater discharge

Chemical oxygen demand (COD) Ammonia nitrogen (NH3-N)Total waste gas discharge Volatile organic compounds (VOCs) Particulate matters (PM) Nitrogen oxides (NOx) Sulfur oxides (SOx) Total dust Carbon monoxide (CO)Total discharge of non-hazardous wastes

?Density of non-hazardous waste discharge

?Total discharge of hazardous wastes

?Density of hazardous waste discharge

Indicator Unit 2022 2023 2024Indicator Unit 2022 2023 2024Energy Utilization Performance

Emission and Waste Management Performance

Waste gas

pollutant

discharge

Water

pollutant

discharge

Directenergy

Indirectenergy

ESG Data Sheet and Notes

Note? [Statistical caliber] The data for 2023 and 2024 covered the Zhaoyuan Base, Dezhou Base, Hubei Base, Guangxi Base, Thai Base, Jilin Base and European Base, while the data for

2022 covered Zhaoyuan Base, Dezhou Base, Hubei Base, Guangxi Base, and Thai Base.Note? The domestic wastewater of each manufacturing base of the Company cannot be counted, so only the Total industrial wastewater discharge is disclosed.Note? [Calculation method] Density of industrial wastewater discharge = Total industrial wastewater discharge / Operating income.Note? Non-hazardous waste mainly includes scrap steel cord, fiber cord, scrap steel wire, waste rubber edge and domestic garbage. [Calculation method] Density of non-hazardous waste

discharge = Total discharge of non-hazardous wastes / Operating income.Note? Hazardous waste mainly includes used engine oil, laboratory waste liquid, and chemical packaging. According to the requirements of the Thailand government in 2024, carbon

black and carbon black packaging bags are included in the hazardous waste project, so the emission of hazardous waste increases. [Calculation method] Density of hazardous

waste discharge = Total discharge of hazardous wastes / Operating income.

m? 218,847.80 455,065.00 480,564.00m?/RMB 10,000 0.13 0.23 0.22Ton 11.97 8.46 15.11Ton 0.19 0.22 0.1910,000 m? —— —— 11,683,199.52Ton —— —— 391.01Ton —— —— 89.67Ton —— —— 65.88Ton —— —— 10.22Ton —— —— 14.51Ton —— —— 1.76Ton 21,612.89 24,071.30 22,182.40kg/RMB 10,000 12.71 11.94 10.66Ton 390.94 429.17 1,111.99kg/RMB 10,000 0.23 0.21 0.50

Note? [Statistical caliber] The data for 2024 covered Zhaoyuan Base, Dezhou Base, Hubei Base, Guangxi Base, Thai Base, Jilin Base and European Base. The data for 2023 covered Zhaoy-

uan Base, Dezhou Base, Hubei Base, Guangxi Base, Thai Base and Jilin Base. The data for 2022 covered Zhaoyuan Base, Dezhou Base, Hubei Base, Guangxi Base, and Thai Base.Note? [Calculation method] Comprehensive energy consumption = Direct energy consumption + Indirect energy consumption.Note? [Calculation method] Comprehensive energy consumption density = Comprehensive energy consumption / Operating income.Note? [Calculation method] Direct energy consumption = Raw coal consumption + Mobile source diesel fuel consumption + Natural gas consumption + Gasoline consumption.Note? [Calculation method] Indirect energy consumption = Purchased steam consumption + Total electricity consumption.Note? [Calculation method] Clean energy consumption = PV power generation.Note? The PV power projects of the Hubei base and Jilin Base were completed in August and October 2023, so the data for 2024 increased compared with the photovoltaic power genera-

tion data for 2023.

Employee turnover rate

Turnover rate of female employees Turnover rate of male employeesTotal expenditure on employee trainingTimes of employee trainingProportion of employees participating in trainingTotal training hours

Total training hours for full-time labor contract employeesTotal training hours for full-time labor dispatching employeesTotal training hours for employees in other forms of employmentAverage training hours of employeesParticipation rate of employees receiving regular performance andcareer development appraisals

Person(s) 18,534 19,347 17,783Person(s) 4,612 4,741 4,555Person(s) 13,922 14,606 13,228Person(s) 14,026 14,336 12,857Person(s) 4,508 5,011 4,926Person(s) 16,856 17,668 17,668Person(s) 798 799 734Person(s) 0 0 0Person(s) 880 880 115Person(s) 5,197 4,968 3,993Person(s) 12,144 12,942 12,165Person(s) 1,193 1,437 1,625% 100 100 100Case(s) 0 0 0Case(s) 0 0 0Case(s) 0 0 0Case(s) 0 0 0Case(s) 0 0 0Case(s) 0 0 0

Total number of employees Number of female employees Number of male employees Number of employees working in the Chinese mainland

Number of employees working in Hong Kong, Macao andTaiwan (China), and overseasBy form of employment Number of full-time employ-ees subject to labor contracts Number of full-time employees subject to labor dispatching

Number of part-time employees Number of employees in other forms of employment

Number of employees under 30 Number of employees aged 30~50 Number of employees aged over 50Labor contract signing rateNumber of major labor disputesTotal number of cases punished for violations against laws and regula-tions related to child labor and forced laborNumber of cases punished for violations against laws and regulationsrelated to recruitment and dismissal of employeesNumber of cases punished for violations against laws and regulationsrelated to working hours and vacations of employeesNumber of cases punished for violations against laws and regulationsrelated to promotion and equal opportunities of employeesNumber of cases punished for violations against laws and regulationsrelated to anti-discrimination and diversity of employees

Circular Economy Performance

By form ofemploy-ment

By agegroup

By placeof work

By gender

Social

Employment and Labor Routine Performance

ESG Data Sheet and Notes

Indicator Unit 2022 2023 2024

% 1.91 1.84 1.41% 1.81 1.73 1.14% 1.86 1.79 1.51RMB 10,000 —— —— 130.05Time(s) —— —— 4,940% 100 100 100Hour(s) 1,496,249.82 2,534,457.00 1,940,859.12Hour(s) 1,360,784.00 2,314,508.00 1,851,871.20Hour(s) 63,840.00 104,669.00 76,934.20Hour(s) 71,042.40 115,280.00 12,053.72Hour(s) 80.73 131.00 104.14% 100 100 100

Note? According to the production and using standards of liquid reclaimed rubber, the Company processes and remanufactures self-produced solid waste to generate liquid reclaimed

rubber and uses it as raw materials.Note? Reclaimed rubber includes liquid reclaimed rubber, environmentally friendly reclaimed rubber, and environmentally friendly butyl reclaimed rubber.Note? Corresponding total carbon black consumption refers to the amount of all carbon black consumed by the Company's production in 2024.Note? Corresponding total consumption of framework materials refers to the amount of framework materials of the same purpose and specifications consumed by the Company’s

production in 2024.

Amount of waste recycled

?Consumption of renewable resources Recycled rubber

Pyrolytic carbon black Recycled framework materialProportion of pyrolysis carbon black consumption to the totalconsumption of the corresponding carbon black

Proportion of recycled framework material consumption to thetotal consumption of corresponding ramework material

Ton 4,322.57Ton 19,275.10Ton 6,899.10Ton 12,180.00Ton 196.00% 5.26% 3.80

Indicator Unit 2024

Employee turnover rate

Turnover rate of female employees Turnover rate of male employeesTotal expenditure on employee trainingTimes of employee trainingProportion of employees participating in trainingTotal training hours

Total number of employees Number of female employees Number of male employees Number of employees working in the Chinese mainland

? Number of part-time employees Number of employees in other forms of employment

By gender

By form ofemployment

Occupational Health and Safety Performance

Product Quality Performance

ESG Data Sheet and Notes

Total investment in safe operationProportion of safe operation investment to operating income

Amount invested in work-related injury insuranceCoverage rate of employees covered in work-related injury insuranceAmount invested in work safety liability insurance for employeesOccupational disease incidence rate of employeesCoverage rate of occupational disease physical examination for employ-ees at hazardous positionNumber of employees receiving occupational health and safety trainingTotal hours of occupational health and safety trainingProportion of employees participating in occupational health andsafety training

?Recordable work-related injury rate per million working hours

Incidence of serious accidents

Indicator Unit 2022 2023 2024

RMB 10,000 3,964.97 4,009.97 5,755.86% 0.23 0.20 0.26RMB 10,000 —— —— 594.82% —— —— 100RMB 10,000 —— —— 24.66% —— —— 0% 100 100 100Person(s) 18,534 19,347 17,783Hour(s) 144 168 168% 100 100 100Time(s) per million hours 1.60 1.52 1.21Time(s) per million hours 0.39 0.36 0.33

Indicator Unit 2022 2023 2024

Note? [Calculation method] Proportion of safe operation input to operating income = Total safe operation input/Operating income * 100.Note? [Calculation method] Proportion of employees participating in occupational health and safety training = Number of employees receiving occupational health and safety training /

Total number of employees * 100.Note? [Calculation method] Recordable work-related injury rate per million working hours = number of work-related injuries accidents/Total working hours * 1000000.Note? [Calculation method] Incidence of serious accidents = Number of serious accidents / Total working hours of employees * 1000000.

Note? [Statistical caliber] The statistical caliber of employee data for 2022 and 2023 includes full-time labor contract employees, labor dispatch employees and other forms of employ-

ment. In 2024, the statistical caliber of employee-related data is consistent with the company's annual financial report, excluding employees with labor dispatch system. Thecompany continues to attach importance to the growth of labor dispatch employees, continuously carries out training for them, and also separately discloses the number of labordispatch employees and the total length of training.Note? In 2022 and 2023, other forms of employment within the Company primarily consist of outsourced staff, re-employment after retirement, interns, etc. In 2024, other forms of

employment within the Company primarily consist of re-employment after retirement, interns, etc.Note? [Calculation method] Employee turnover rate = 12-month cumulative number of resigned employees / (12-month cumulative number of resigned employees + 12-month cumulative

month-end number), with retirees, deaths, and other special circumstances deducted from the number of resigned employees.

Number of product quality training for all employeesProportion of employees participating in product quality trainingAmount of damages involved in major liability accidents related tosafety and quality of products and services that occurred during thereporting period

Indicator Unit 2022 2023 2024

Time(s) 2 4 4% 100 100 100RMB 10,000 —— —— 0

Customer satisfactionTotal number of product/service-related complaints received

Product quality and safety related Customer service related Other issuesNumber of complaintsreceived by type of complaint

Case(s) 0 0 0RMB 10,000 —— —— 0RMB 10,000 —— —— 0

Customer Service PerformanceData Security and Customer Privacy Protection Performance

Supplier Management Performance

Indicator Unit 2022 2023 2024

Indicator Unit 2022 2023 2024Indicator Unit 2022 2023 2024

ESG Data Sheet and Notes

Number of product quality training for various raw material suppliersProportion of suppliers participating in product quality training

Proportion of suppliers receiving business ethics trainingProportion of suppliers signing anti-corruption agreementsNumber of key suppliers

?with actual and potential significantnegative environmental impacts

identified by auditNumber of key suppliers

?with actual and potential significantnegative social impacts

? identified by auditProportion of suppliers receiving and passing environmental,labor, and ethical assessments among all suppliers

Time(s) 3 3 2% 15.52 12.00 20.50% 100 100 100% 100 100 100No. 0 0 0

No. 0 0 0% 100 100 100

Social Welfare and Volunteer Service Performance

Indicator Unit 2022 2023 2024Total community welfare investmentNumber of employees participating in volunteer servicesTotal hours of volunteering services that employees participated in

RMB 10,000 248.97 347.62 55.83Person(s) 372 312 301Hour(s) 2,117 2,007 1,707

Number of confirmed cases of leakage, theft or loss of customerinformationAmount involved in data security incidentsAmount involved in customer privacy breach incidents

Points 99.85 99.61 99.64No. 8 11 11No. 8 11 11No. 0 0 0No. 0 0 0

Indicator Unit 2022 2023 2024R&D expensesProportion of R&D expenses to operating income

Number of R&D personnelProportion of R&D personnel

Number of active patents in the reporting periodNumber of patent applications in the reporting periodNumber of patent licenses in the reporting periodNumber of invention patents applied to the main business

Innovation-driven Performance

RMB 10,000 74,792.91 81,478.44 92,048.48% 4.40 4.04 4.17Person(s) —— —— 2,240% 12.11 11.74 12.60No. —— —— 1,160No. —— —— 154No. —— —— 221No. —— —— 131

Note? [Calculation method] Proportion of R&D expenses to operating income = R&D expenses/Operating income * 100.Note? [Calculation method] Proportion of R&D personnel = Number of R&D personnel / Total number of employees * 100.

Note? [Calculation method] Proportion of suppliers participating in product quality training = Number of suppliers receiving product quality training / Number of all suppliers * 100.Note? The Company carries out negative environmental and social impact audits of suppliers based on severity of impact, scale of impact and likelihood of occurrence (divided into four

grades: slight, moderate, significant and severe), and if the combined evaluation result of the three factors is significant or above, the Company is recognized as having a significantactual or potential negative impact on the environment or society.Note? Key suppliers refer to suppliers of key raw materials (which are raw materials related to tire safety or laws and regulations).Note? [Calculation method] Proportion of suppliers receiving and passing environmental, labor, and ethical assessments among all suppliers = Number of suppliers that have been evalu-

ated and qualified in terms of the environment, labor, and ethics / Number of all suppliers * 100.

Note? [Calculation method] Total number of product/service-related complaints received = Product quality and safety-related complaints + Customer service-related complaints + Other complaints.

Indicator Unit 2022 2023 2024

Number of members in the Board of DirectorsNumber of male directorsNumber of female directorsProportion of female directors in the Board of Directors

Number of executive directorsNumber of non-executive directorsNumber of independent non-executive directorsProportion of independent non-executive directors in theBoard of Directors

Governance

Corporate Governance Performance

Indicator Unit 2022 2023 2024

Ethical Business and Compliance Performance

ESG Data Sheet and Notes

Number of participants in compliance trainingNumber of compliance trainingProportion of employees participating in compliancetraining

?Number of directors who received anti-commercial brib-ery and anti-corruption trainingProportion of directors participating in anti-commercialbribery and anti-corruption training

Total anti-corruption training hours for directorsAnti-corruption training hours for directors per capita

Number of managers receiving anti-commercial briberyand anti-corruption training

Person(s) 3,400 3,910 4,428Time(s) 3 10 12% 18.34 20.21 24.90Person(s) 9 9 9% 100 100 100Hour(s) 18.00 18.00 18.00Hour/person 2.00 2.00 2.00Person(s) —— —— 645

Person(s) 9 9 9Person(s) 7 7 7Person(s) 2 2 2% 22.22 22.22 22.22Person(s) 4 4 4Person(s) 5 5 5Person(s) 3 3 3% 33.33 33.33 33.33

Indicator Unit 2022 2023 2024

Proportion of managers participating in anti-commercialbribery and anti-corruption training

?Number of employees receiving anti-commercial briberyand anti-corruption trainingProportion of employees participating in anti-commer-cial bribery and anti-corruption training

Number of concluded legal cases regarding corruptpractices brought against the issuer or its employeesduring the reporting periodNumber of people signing the Integrity and Self-disciplineCommitment LetterNumber of person participating in clean culture visits

Number of cadres inspected

Amount involved in litigation or major administrativepenalties due to the Company's unfair competitionbehavior during the reporting periodNumber of violations of laws and regulations in market-ing (including advertising, promotion and sponsorship)

% —— —— 100Person(s) 18,534 19,347 17,783% 100 100 100Case(s) 0 0 0Person(s) 18,534 19,347 17,783Person-time(s) 14,000 13,000 13,115Person-time(s) 1,300 1,300 1,300RMB 10,000 —— —— 0No. 0 0 0

Note? [Calculation method] Proportion of employees participating in compliance training = number of employees participating in compliance training / Total number of employees * 100.Note? [Calculation method] Proportion of directors participating in anti-commercial bribery and anti-corruption training = Number of directors who received anti-commercial bribery and

anti-corruption training / Number of members in the Board of Directors * 100.Note? [Calculation method] Anti-corruption training hours for directors per capita = Total number of hours of anti-corruption training received by directors / Number of members in the

Board of Directors.Note? [Calculation method] Proportion of managers participating in anti-commercial bribery and anti-corruption training = Number of managers receiving anti-commercial bribery and

anti-corruption training / Number of managers * 100.Note? [Calculation method] Proportion of employees participating in anti-commercial bribery and anti-corruption training = Number of employees receiving anti-commercial bribery and

anti-corruption training / Total number of employees * 100.Note? The number of people participating in clean culture visits and the number of cadres inspected are estimate.

Note? [Calculation method] Proportion of female directors in the Board of Directors = Number of female directors / Number of members in the Board of Directors * 100.Note? [Calculation method] Proportion of independent non-executive directors in the Board of Directors = Number of independent non-executive directors /Number of members in the

Board of Directors * 100.

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Report Standard Index

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Supply Chain ManagementThe balance of accounts payable (including notes payable) at the end of the reporting period didnot exceed RMB 30 billion, and accounted for not more than 50% of total assets, and none of theenterprises within the scope of the consolidated statements were required to disclose informationon overdue payments to medium-sized enterprises in the National Enterprise Credit InformationPublicity System.Safety and Quality of Products and ServicesESG Data Sheet and NotesData Security and Customer Privacy ProtectionESG Data Sheet and NotesWork SafetyEmployeesESG Data Sheet and NotesDue Diligence and Stakeholder CommunicationDue Diligence and Stakeholder CommunicationBusiness EthicsESG Data Sheet and NotesBusiness EthicsInnovation-drivenCorporate GovernanceCompliant Operation

Index of the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies – Sustainability Report (Trial)

Disclosure adviceSection

Climate change tackling

Pollutant discharge

Waste disposal

Ecosystem and biodiversity conservationEnvironmental compliance management

Energy usage

Usage of water resources

Circular economy

Rural revitalizationContributions of the social

Innovation-driven

Ethics of science and technology

Climate Change TacklingESG Data Sheet and NotesEmission and Waste ManagementESG Data Sheet and NotesEmission and Waste ManagementESG Data Sheet and NotesEcosystem and Biodiversity ConservationEnvironmental ManagementEnergy ManagementESG Data Sheet and NotesWater Resource ManagementESG Data Sheet and NotesCircular EconomyESG Data Sheet and NotesThe Company has not yet initiated any specialized work related to rural revitalization. However,the Company will increase investment in this area after further consideration.Community Co-construction and Public Welfare CharityCircular EconomyInnovation-drivenESG Data Sheet and NotesThe Company is not engaged in scientific research and technological development in sensitiveareas of science and technology ethics such as life sciences, and artificial intelligence, and thetopic is not relevant to the Company.

Supply chain security

Equal treatment of small and medium-sized enterprises

Safety and quality of products and services

Data security and customer privacy protection

Employees

Due diligenceCommunication with stakeholders

Anti-commercial bribery and anti-corruption

Anti-unfair competition Intellectual property protection Corporate governance Compliant operation

Disclosure adviceSection

Report Standard Index

Topics subject toself-disclosure

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

2-1 Organizational details2-2 Entities included in the organization's sustainability reporting2-3 Reporting period, frequency and contact point2-4 Restatements of information2-5 External Assurance2-6 Activities, value chain and other business relationships2-7 Employees2-8 Workers who are not employees2-9 Governance structure and composition2-10 Nomination and selection of the highest governing body2-11 Chair of the highest governing body2-12 Role of the highest governance body in overseeing the man-agement of impacts2-13 Delegation of responsibility for managing impacts2-14 Role of the highest governance body in sustainability reporting

Corporate GovernanceBusiness EthicsDue Diligence and Stakeholder Commu-nicationCorporate GovernanceEmployeesCorporate GovernanceSustainability Concept

Sustainability Management Structure

Compliant OperationDue Diligence and StakeholderCommunicationEmployees

Process of Topics’ Materiality AnalysisConclusion of Materiality Analysis

About Linglong Tire

Climate Change TacklingEmployees

2-15 Conflicts of interest2-16 Communication of critical concerns2-18 Evaluation of the performance of the highest governance body2-19 Remuneration policies2-20 Process to determine remuneration2-22 Statement on sustainability strategy2-23 Policy commitments2-24 Embedding policy commitments2-27 Compliance with laws and regulations2-29 Approach to stakeholder engagement2-30 Collective bargaining agreements3-1 Process to determine material topics3-2 List of material topics3-3 Management of material topics201-1 Direct economic value generated and distributed201-2

Financial implications and other risks and opportunities due

to climate change201-3 Defined benefit plan obligations and other retirement plans

About Linglong TireAbout This ReportAbout This ReportAbout This ReportAssurance StatementAbout Linglong TireEmployeesEmployees

Corporate GovernanceSustainability Management Structure

Chairman's MessageSustainability Management Structure

Index of GRl Sustainability Reporting Standards (2021) by the Global Sustainability Standards Board (GSSB)

GRI 2:

General Disclosures2021

GRI 3:

Material Topics 2021

GRI 201:

Economic Performance2016

GRI 1: Foundation 2021

Statement of use

GRI 1 used

Linglong Tire reported in accordance with the Global Reporting Initiative (GRI) Standardsfor the period from January 1, 2024 to December 31, 2024

203-1 Infrastructure investments and services supported203-2 Significant indirect economic impacts205-1 Operations assessed for risks related to corruption205-2

Communication and training about anti-corruption policies and

procedures205-3 Confirmed incidents of corruption and actions taken

206-1

Legal actions for anti-competitive behavior, anti-trust, and

monopoly practices301-2 Recycled input materials used301-3 Reclaimed products and their packaging materials302-1 Energy consumption within the organization302-2 Energy consumption outside of the organization302-3 Energy intensity302-4 Reduction of energy consumption302-5 Reductions in energy requirements of products and services303-1 Interactions with water as a shared resource303-2 Management of water discharge-related impacts303-3 Water withdrawal

303-4 Water drainage303-5 Water consumption304-1

Operational sites owned, leased, managed in, or adjacent to,

protected areas and areas of high biodiversity value outsideprotected areas304-2 Significant impacts of activities, products and services on

biodiversity304-3 Habitats protected or restored

304-4

IUCN Red List species and national conservation list species

with habitats in areas affected by operations305-1 Direct (Scope 1) GHG emissions305-2 Energy indirect (Scope 2) GHG emissions305-4 GHG emissions intensity305-5 Reduction of GHG emissions

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other signifi-

cant air emissions306-1 Waste generation and significant waste-related impacts306-2 Management of significant waste-related impacts306-3 Wastes generated306-5 Waste directed to disposal

308-1 New suppliers that were screened using environmental criteria308-2

Negative environmental impacts in the supply chain and

actions taken401-1 New employee hires and employee turnover

401-2

Benefits provided to full-time employees that are not provid-

ed to temporary or part-time employees403-1 Occupational health and safety management system403-2

Hazard identification, risk assessment, and incident investi-

gation403-3 Occupational health services403-4

Worker participation, consultation, and communication on

occupational health and safety403-5 Worker training on occupational health and safety

403-7

Prevention and mitigation of occupational health and safety

impacts directly linked by business relationships403-8

Workers covered by an occupational health and safety

management system403-9 Work-related injuries403-10 Work-related ill health404-1 Average hours of training per year per employee404-2

Programs for upgrading employee skills and transition

assistance programs

404-3

Percentage of employees receiving regular performance and

career development reviews405-1 Diversity of governance bodies and employees406-1 Incidents of discrimination and corrective actions taken

407-1

Operations and suppliers in which the right to freedom of

association and collective bargaining may be at risk408-1

Operations and suppliers at significant risk for incidents of

child labor409-1

Operations and suppliers at significant risk for incidents of

forced or compulsory labor

413-1

Operations with local community engagement, impact

assessments, and development programs414-1 New suppliers that were screened using social criteria414-2 Negative social impacts in the supply chain and actions taken416-1

Assessment of the health and safety impacts of product and

service categories416-2

Incidents of non-compliance concerning the health and

safety impacts of products and services417-2

Incidents of non-compliance concerning product and service

information and labeling417-3

Incidents of non-compliance concerning marketing commu-

nications418-1

Substantiated complaints concerning breaches of customer

privacy and losses of customer data

Community Co-construction and PublicWelfare Charity

Business Ethics

Circular Economy

Energy Management

Environmental Management

Ecosystem and Biodiversity Conservation

Climate Change TacklingESG Data Sheet and Notes

Environmental ManagementESG Data Sheet and Notes

Environmental Management

Supply Chain Management

Employees

Work Safety

Employees

EmployeesEmployees

Employees

Community Co-construction and PublicWelfare Charity

Supply Chain Management

Safety and Quality of Products andServices

Data Security and Customer PrivacyProtection

DisclosureLocation

DisclosureGRI Standards

GRI Standards

Location

Report Standard Index

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Role of the highest governance body in overseeing the man-agement of impacts2-13 Delegation of responsibility for managing impacts2-14 Role of the highest governance body in sustainability reporting

Corporate GovernanceBusiness EthicsDue Diligence and Stakeholder Commu-nicationCorporate GovernanceEmployeesCorporate GovernanceSustainability Concept

Sustainability Management Structure

Compliant OperationDue Diligence and StakeholderCommunicationEmployees

Process of Topics’ Materiality AnalysisConclusion of Materiality Analysis

About Linglong Tire

Climate Change TacklingEmployees

Financial implications and other risks and opportunities due

to climate change201-3 Defined benefit plan obligations and other retirement plans

About Linglong TireAbout This ReportAbout This ReportAbout This ReportAssurance StatementAbout Linglong TireEmployeesEmployees

Corporate GovernanceSustainability Management Structure

Chairman's MessageSustainability Management Structure

203-1 Infrastructure investments and services supported203-2 Significant indirect economic impacts205-1 Operations assessed for risks related to corruption205-2

Communication and training about anti-corruption policies and

procedures205-3 Confirmed incidents of corruption and actions taken

206-1

Legal actions for anti-competitive behavior, anti-trust, and

303-4 Water drainage303-5 Water consumption304-1

Operational sites owned, leased, managed in, or adjacent to,

protected areas and areas of high biodiversity value outsideprotected areas304-2 Significant impacts of activities, products and services on

biodiversity304-3 Habitats protected or restored

304-4

IUCN Red List species and national conservation list species

with habitats in areas affected by operations305-1 Direct (Scope 1) GHG emissions305-2 Energy indirect (Scope 2) GHG emissions305-4 GHG emissions intensity305-5 Reduction of GHG emissions

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other signifi-

cant air emissions306-1 Waste generation and significant waste-related impacts306-2 Management of significant waste-related impacts306-3 Wastes generated306-5 Waste directed to disposal

308-1 New suppliers that were screened using environmental criteria308-2

Negative environmental impacts in the supply chain andactions taken401-1 New employee hires and employee turnover

401-2

Benefits provided to full-time employees that are not provid-

ed to temporary or part-time employees403-1 Occupational health and safety management system403-2

Hazard identification, risk assessment, and incident investi-

gation403-3 Occupational health services403-4

Worker participation, consultation, and communication on

occupational health and safety403-5 Worker training on occupational health and safety

403-7

Prevention and mitigation of occupational health and safety

impacts directly linked by business relationships403-8

Workers covered by an occupational health and safety

management system403-9 Work-related injuries403-10 Work-related ill health404-1 Average hours of training per year per employee404-2

Programs for upgrading employee skills and transition

assistance programs

404-3

Percentage of employees receiving regular performance and

career development reviews405-1 Diversity of governance bodies and employees406-1 Incidents of discrimination and corrective actions taken

407-1

Operations and suppliers in which the right to freedom of

association and collective bargaining may be at risk408-1

Operations and suppliers at significant risk for incidents of

child labor409-1

Operations and suppliers at significant risk for incidents of

forced or compulsory labor

413-1

Operations with local community engagement, impact

assessments, and development programs414-1 New suppliers that were screened using social criteria414-2 Negative social impacts in the supply chain and actions taken416-1

Assessment of the health and safety impacts of product and

service categories416-2

Incidents of non-compliance concerning the health and

safety impacts of products and services417-2

Incidents of non-compliance concerning product and service

information and labeling417-3

Incidents of non-compliance concerning marketing commu-

nications418-1

Substantiated complaints concerning breaches of customer

privacy and losses of customer data

Community Co-construction and PublicWelfare Charity

Business Ethics

Circular Economy

Energy Management

Environmental Management

Ecosystem and Biodiversity Conservation

Climate Change TacklingESG Data Sheet and Notes

Environmental ManagementESG Data Sheet and Notes

Environmental Management

GRI 203:

Indirect EconomicImpacts 2016

GRI 205:

Anti-corruption 2016

GRI 206:

Anti-competitiveBehavior 2016GRI 301:

Materials 2016

GRI 302:

Energy 2016

GRI 303:

Water and Effluents 2018

Supply Chain Management

Employees

Work Safety

Employees

GRI 304:

Biodiversity 2016

GRI 305:

Emissions 2016

GRI 306:

Waste 2020

EmployeesEmployees

Employees

Community Co-construction and PublicWelfare Charity

Supply Chain Management

Safety and Quality of Products andServices

Data Security and Customer PrivacyProtection

Report Standard Index

DisclosureLocationDisclosureGRI StandardsGRI StandardsLocation

Role of the highest governance body in overseeing the man-

agement of impacts2-13 Delegation of responsibility for managing impacts2-14 Role of the highest governance body in sustainability reporting

Corporate GovernanceBusiness EthicsDue Diligence and Stakeholder Commu-nicationCorporate GovernanceEmployeesCorporate GovernanceSustainability Concept

Sustainability Management Structure

Compliant OperationDue Diligence and StakeholderCommunicationEmployees

Process of Topics’ Materiality AnalysisConclusion of Materiality Analysis

About Linglong Tire

Climate Change TacklingEmployees

Financial implications and other risks and opportunities due

to climate change201-3 Defined benefit plan obligations and other retirement plans

About Linglong TireAbout This ReportAbout This ReportAbout This ReportAssurance StatementAbout Linglong TireEmployeesEmployees

Corporate GovernanceSustainability Management Structure

Chairman's MessageSustainability Management Structure

GRI 308:

Supplier EnvironmentalAssessment 2016

GRI 401:

Employment 2016

GRI 403:

Occupational Healthand Safety 2018

GRI 404:

Training and Education2016

GRI 405: Diversity andEqual Opportunity2016GRI 406: Non-discrimi-nation 2016GRI 407: Freedom of Asso-ciation and Collective Bar-gaining 2016GRI 408:

Child Labor 2016GRI 409:

Forced or CompulsoryLabor 2016GRI 413:

Local Communities2016GRI 414:

Supplier SocialAssessment 2016

GRI 416:

Customer Health andSafety 2016

GRI 417:

Marketing andLabeling 2016GRI 418:

Customer Privacy 2016

203-1 Infrastructure investments and services supported203-2 Significant indirect economic impacts205-1 Operations assessed for risks related to corruption205-2

Communication and training about anti-corruption policies and

procedures205-3 Confirmed incidents of corruption and actions taken

206-1

Legal actions for anti-competitive behavior, anti-trust, and

303-4 Water drainage303-5 Water consumption304-1

Operational sites owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outsideprotected areas304-2 Significant impacts of activities, products and services on

biodiversity304-3 Habitats protected or restored

304-4

IUCN Red List species and national conservation list species

with habitats in areas affected by operations305-1 Direct (Scope 1) GHG emissions305-2 Energy indirect (Scope 2) GHG emissions305-4 GHG emissions intensity305-5 Reduction of GHG emissions

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other signifi-

cant air emissions306-1 Waste generation and significant waste-related impacts306-2 Management of significant waste-related impacts306-3 Wastes generated306-5 Waste directed to disposal

308-1 New suppliers that were screened using environmental criteria308-2

Negative environmental impacts in the supply chain and

actions taken401-1 New employee hires and employee turnover

401-2

Benefits provided to full-time employees that are not provid-

ed to temporary or part-time employees403-1 Occupational health and safety management system403-2

Hazard identification, risk assessment, and incident investi-

gation403-3 Occupational health services403-4

Worker participation, consultation, and communication on

occupational health and safety403-5 Worker training on occupational health and safety

403-7

Prevention and mitigation of occupational health and safety

impacts directly linked by business relationships403-8

Workers covered by an occupational health and safety

management system403-9 Work-related injuries403-10 Work-related ill health404-1 Average hours of training per year per employee404-2

Programs for upgrading employee skills and transition

assistance programs

404-3

Percentage of employees receiving regular performance and

career development reviews405-1 Diversity of governance bodies and employees406-1 Incidents of discrimination and corrective actions taken

407-1

Operations and suppliers in which the right to freedom of

association and collective bargaining may be at risk408-1

Operations and suppliers at significant risk for incidents of

child labor409-1

Operations and suppliers at significant risk for incidents of

forced or compulsory labor

413-1

Operations with local community engagement, impact

assessments, and development programs414-1 New suppliers that were screened using social criteria414-2 Negative social impacts in the supply chain and actions taken416-1

Assessment of the health and safety impacts of product and

service categories416-2

Incidents of non-compliance concerning the health and

safety impacts of products and services417-2

Incidents of non-compliance concerning product and service

information and labeling417-3

Incidents of non-compliance concerning marketing commu-

nications418-1

Substantiated complaints concerning breaches of customer

privacy and losses of customer data

Community Co-construction and PublicWelfare Charity

Business Ethics

Circular Economy

Energy Management

Environmental Management

Ecosystem and Biodiversity Conservation

Climate Change TacklingESG Data Sheet and Notes

Environmental ManagementESG Data Sheet and Notes

Environmental Management

Supply Chain Management

Employees

Work Safety

Employees

EmployeesEmployees

Employees

Community Co-construction and PublicWelfare Charity

Supply Chain Management

Safety and Quality of Products andServices

Data Security and Customer PrivacyProtection

Report Standard Index

DisclosureLocationDisclosureGRI StandardsGRI StandardsLocation

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Glossary

2024 Sustainability ReportShandong Linglong Tyre Co., Ltd.

Definition

Automated Guided Vehicle.Carbon Border Adjustment Mechanism, also referred to as carbon border tax, is a tax imposed by the European Union on the carbon emissions of some imported goods.Enterprise Asset Management System.The EU Deforestation Regulation prohibits the placement on the EU market or the export from the EU market of products that fail to meet its stringent legality and sustainability criteria. It regulates seven commodities, including rubber, and imposes rigorous controls on the traceability and transparency ofthese commodities and their derived products.Failure Mode and Effects Analysis is a systematic methodology for assessing product reliability. It evaluates the risk level of potential issues by analyzing and documenting a product's failure modes, their associated impacts, probable causes or underlying failure mechanisms, the frequency of occurrence,and the detectability of such failures.The Global Platform for Sustainable Natural Rubber (GPSNR) is an independent, non-profit, non-governmental organization founded by the World Business Council for Sustainable Development (WBCSD). It is committed to leading improvements in the socio-economic and environmental performance ofthe natural rubber supply chain and bringing together various stakeholders to a common ground to build a fair, equitable, and environmentally sound natural rubber value chain.Manufacturing Execution System.Passenger Car Radial.Quality Management System.Responsible Supply Chain Initiative.Regenerative Thermal Oxidizer is an organic exhaust gas treatment equipment with high efficiency for VOCs.Supplier Assurance Questionnaire.Sustainability Assessment Questionnaire (SAQ 5.0).Truck and Bus Radial.Volatile Organic Compounds.Organic exhaust gas treatment equipment.

Terms

AGVCBAMEAMS

EUDR

FMEA

GPSNR

MESPCRQMSRSCIRTOSAQSAQ 5.0TBRVOCsZeolite rotor

Glossary

Assurance Statement

SCOPE OF ASSURANCE AND REPORTING CRITERIA The assurance engagement was conducted to evaluate the accuracy and reliability of the sustainability performance information included in the Report. Additionally, it assessed the extent to which the Report's content refers to the requirements of GRI Standards 2021. ASSURANCE METHODOLOGY The assurance comprised a combination of pre-assurance research, interviews with relevant employees (located at No. 777 Jinlong Road, Zhaoyuan City, Shandong Province, on-site); documentation and record review and validation where relevant. LIMITATIONS AND MITIGATION Data drawn directly from independently audited financial accounts has not been checked back to source as part of this assurance process. The greenhouse gas emissions related data in the Report has not undergone verification by an independent third-party auditor. In the context of the present assurance engagement, our procedures were limited to sample-based validation.
						ASSURANCE STATEMENT CN25/00002556

This assurance engagement was restricted to the group level of LINGLONG and did not include traceability oforiginal data from all subordinate institutions.

STATEMENT OF INDEPENDENCE AND COMPETENCEThe SGS Group of companies is the world leader in inspection, testing and certification, operating in multiplecountries and providing services. SGS affirm our independence from LINGLONG, being free from bias andconflicts of interest with the organisation, its subsidiaries and stakeholders.

The assurance team was assembled based on their knowledge, experience and qualifications for thisassignment.

FINDINGS AND CONCLUSIONS

ASSURANCE/VERIFICATION OPINIONOn the basis of the methodology described and the assurance engagement performed, the specified data andinformation included in the scope of assurance is accurate, reliable, and has been fairly stated.

CONCLUSIONS, FINDINGS AND RECOMMENDATIONS BASED ON GRI STANDARDS 2021

The assurance team concludes that the Report has referred to the requirements of GRI Standards 2021.

FINDINGS AND RECOMMENDATIONSAll observations pertaining to commendable practices, sustainable development activities, and managerialrecommendations identified throughout the assurance process have been thoroughly documented in theInternal Management Report on Sustainability Reporting Assurance. This report has been officially presented tothe relevant management divisions of LINGLONG to serve as a reference for their ongoing efforts towardscontinuous improvement.

Signed:

For and on behalf of SGS-CSTC

David XinSr. Director – Business Assurance16/F Century Yuhui Mansion, No. 73, Fucheng Road, Beijing, P.R. China

Apr. 21

, 2025WWW.SGS.COM

This assurance engagement was restricted to the group level of LINGLONG and did not include traceability of original data from all subordinate institutions. STATEMENT OF INDEPENDENCE AND COMPETENCE The SGS Group of companies is the world leader in inspection, testing and certification, operating in multiple countries and providing services. SGS affirm our independence from LINGLONG, being free from bias and conflicts of interest with the organisation, its subsidiaries and stakeholders. The assurance team was assembled based on their knowledge, experience and qualifications for this assignment. FINDINGS AND CONCLUSIONS ASSURANCE/VERIFICATION OPINION On the basis of the methodology described and the assurance engagement performed, the specified data and information included in the scope of assurance is accurate, reliable, and has been fairly stated. CONCLUSIONS, FINDINGS AND RECOMMENDATIONS BASED ON GRI STANDARDS 2021 The assurance team concludes that the Report has referred to the requirements of GRI Standards 2021. FINDINGS AND RECOMMENDATIONS All observations pertaining to commendable practices, sustainable development activities, and managerial recommendations identified throughout the assurance process have been thoroughly documented in the Internal Management Report on Sustainability Reporting Assurance. This report has been officially presented to the relevant management divisions of LINGLONG to serve as a reference for their ongoing efforts towards continuous improvement. Signed: For and on behalf of SGS-CSTC David Xin Sr. Director – Business Assurance 16/F Century Yuhui Mansion, No. 73, Fucheng Road, Beijing, P.R. China Apr. 21st, 2025 WWW.SGS.COM

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